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HomeMy WebLinkAbout2018 CAFR COMPREHENSIVE ANNUAL FINANCIAL REPORT OF THE CITY OF ST. ANTHONY, MINNESOTA FOR THE YEAR ENDED DECEMBER 31, 2018 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 9 Organizational Chart 10 Independent Auditor's Report 13 Management's Discussion and Analysis 17 Basic Financial Statements: Government-Wide Financial Statements: Statement of Net Position Statement 1 29 Statement of Activities Statement 2 30 Fund Financial Statements: Balance Sheet - Governmental Funds Statement 3 32 Statement of Revenues, Expenditures and Changes in Fund Balance - Governmental Funds Statement 4 34 Reconciliation of the Statement of Revenues, Expenditures and Changes in Fund Balances of Governmental Funds Statement 5 36 Statement of Net Position - Proprietary Funds Statement 6 37 Statement of Revenues, Expenses and Changes in Fund Net Position - Proprietary Funds Statement 7 38 Statement of Cash Flows - Proprietary Funds Statement 8 39 Statement of Fiduciary Net Position - Fiduciary Fund Statement 9 40 Notes to Financial Statements 41 Required Supplementary Information: Budgetary Comparison Schedule - General Fund Statement 10 94 Schedule of Changes in the City's Total OPEB Liability and Related Ratios Statement 11 99 Schedule of Proportionate Share of Net Pension Liability - General Employees Retirement Fund Statement 12 100 Schedule of Pension Contributions - General Employees Retirement Fund Statement 13 101 Schedule of Proportionate Share of Net Pension Liability - Public Employees Police and Fire Fund Statement 14 102 Schedule of Pension Contributions - Public Employees Police and Fire Fund Statement 15 103 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 16 104 Schedule of Contributions - St. Anthony Fire Department Relief Association Statement 17 105 Notes to RSI 107 Combining and Individual Nonmajor Fund Financial Statements and Schedules: Combining Balance Sheet - Nonmajor Governmental Funds Statement 18 114 Combining Statement of Revenues, Expenditures and Changes in Fund Balance - Nonmajor Governmental Funds Statement 19 115 Subcombining Balance Sheet - Nonmajor Special Revenue Funds Statement 20 120 Subcombining Statement of Revenues, Expenditures and Changes in Fund Balance - Nonmajor Special Revenue Funds Statement 21 122 Subcombining Balance Sheet - Nonmajor Debt Service Funds Statement 22 126 Subcombining Statement of Revenues, Expenditures and Changes in Fund Balance - Nonmajor Debt Service Funds Statement 23 127 Subcombining Balance Sheet - Nonmajor Capital Project Funds Statement 24 130 Subcombining Statement of Revenues, Expenditures and Changes in Fund Balance - Nonmajor Capital Project Funds Statement 25 131 Special Revenue Funds: Schedules of Revenues, Expenditures and Changes in Fund Balance - Budget and Actual: Community Center Fund Statement 26 132 Police Forfeiture Fund Statement 27 133 Recycling Fund Statement 28 134 HRA Fund Statement 29 135 Fire Education/Training Fund Statement 30 136 Statement of Changes in Assets and Liabilities - Agency Fund Statement 31 137 Supplementary Financial Information: Street Improvement Debt Service Fund: Balance Sheet Exhibit 1 140 Schedule of Revenues, Expenditures and Changes in Fund Balance Exhibit 2 142 HRA TIF Debt Service Fund: Balance Sheet Exhibit 3 144 Schedule of Revenues, Expenditures and Changes in Fund Balance Exhibit 4 145 HRA TIF Improvements Fund: Balance Sheet Exhibit 5 146 Schedule of Revenues, Expenditures and Changes in Fund Balance Exhibit 6 147 CITY OF ST. ANTHONY, MINNESOTA TABLE OF CONTENTS Page Reference No. Street Improvement Project Fund: Balance Sheet Exhibit 7 148 Schedule of Revenues, Expenditures and Changes in Fund Balance Exhibit 8 149 Water/Sewer/Water Plant Enterprise Fund: Schedule of Revenues, Expenses and Changes in Fund Net Position Exhibit 9 150 Financial Trends: Net Position by Component Table 1 152 Changes in Net Position Table 2 154 Fund Balances - Governmental Funds Table 3 158 Changes in Fund Balances - Governmental Funds Table 4 160 Revenue Capacity: Tax Capacity Value and Estimated Market Value of Taxable Property Table 5 162 Direct and Overlapping Property Tax Rates Table 6 163 Principal Property Taxpayers Table 7 164 Property Tax Levies and Collections Table 8 165 Debt Capacity: Ratios of Outstanding Debt by Type Table 9 166 Direct and Overlapping Governmental Activities Debt Table 10 169 Legal Debt Margin Information Table 11 170 Pledged Revenue Coverage Table 12 172 Demographic and Economic: Demographic and Economic Statistics Table 13 176 Principal Employers Table 14 177 Operating Information: Full-Time Equivalent City Government Employees by Function/Program Table 15 178 Operating Indicators by Function/Program Table 16 180 Capital Asset Statistics by Function/Program Table 17 182 III. STATISTICAL SECTION (Unaudited) - This page intentionally left blank - I. INTRODUCTORY SECTION 1 - This page intentionally left blank - 2     3 Our mission is to be a progressive and welcoming  Village that is walkable, sustainable and safe 3301 Silver Lake Road, St. Anthony, MN 55418 612‐782‐3301 | www.savmn.com     May 30, 2019    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, 2018.  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, 2018.  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 9,234.  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      4 Our mission is to be a progressive and welcoming  Village that is walkable, sustainable and safe 3301 Silver Lake Road, St. Anthony, MN 55418 612‐782‐3301 | www.savmn.com   Minneapolis‐St. Paul metropolitan area by the use of Interstate 35W, Interstate 694 and  Highway 280.  The City is served by Independent School District (ISD) #282 (St. Anthony), which has a  2018/2019 enrollment of approximately 1,910, 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, prevention and medical responses; 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 environmental sustainability programs.    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 30th.  The City Council is required to hold public hearings on      5  Our mission is to be a progressive and welcoming  Village that is walkable, sustainable and safe 3301 Silver Lake Road, St. Anthony, MN 55418 612‐782‐3301 | www.savmn.com   the proposed budget and to adopt a final budget by December 31, the close of the City of St.  Anthony’s fiscal year.  The appropriated budget is prepared for the General Fund by function (e.g., public safety), and  department (e.g., police), and object code (e.g., salaries). Transfers of appropriations between  departments require the approval of the City Council.  Budget‐to‐actual comparisons are  provided on Statement 10 as required supplementary information to the basic financial  statements for the governmental funds.  Factors Affecting Financial Condition  The information presented in the financial statements is perhaps best understood when it is  considered from the broader perspective of the specific environment within which the City of  St. Anthony operates.  Local economy:  The Minneapolis‐St. Paul metropolitan area has continued to experience a  relatively stable economy.  The market place for local products and services remains strong.  St.  Anthony is a fully developed City.  However, continued long‐term growth is anticipated as St.  Anthony experiences redevelopment activity in commercial and industrial areas, along with the  construction of additional multi‐family residential units.   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 initial investment objective is to preserve  capital.  Secondary considerations are liquidity and lastly yield.  Accordingly, deposits are      6  Our mission is to be a progressive and welcoming  Village that is walkable, sustainable and safe 3301 Silver Lake Road, St. Anthony, MN 55418 612‐782‐3301 | www.savmn.com   either insured by federal depository insurance or collateralized.  Temporary cash surpluses  during the year are invested in various securities defined by Minnesota Statutes.  The City’s  policy is to invest 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.  SHARED SERVICES  Grants:  Each year, the City actively participates in Federal, State and County administered  grants.  In 2018 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. Hennepin County Sidewalk Grant     7  Our mission is to be a progressive and welcoming  Village that is walkable, sustainable and safe 3301 Silver Lake Road, St. Anthony, MN 55418 612‐782‐3301 | www.savmn.com     H. Minnesota Department of Health ‐ Wellhead Protection Grant  Partnerships and Colleagues:  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. The City also has formed partnerships with  colleagues in other jurisdictions. These relationships include providing financial and human  resource services to the Middle Mississippi Water Management Organization, a fuel purchasing  arrangement with the City of New Brighton, utility billing services to the City of Birchwood  Village and police services to the City of Lauderdale. Lastly the City partners with neighboring  communities on infrastructure projects when opportunity arises. A recent example would be  the installation of LED street lights on Silver Lake Road, a joint project with the City of New  Brighton.   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     - This page intentionally left blank - 8 CITY OF ST. ANTHONY, MINNESOTA ORGANIZATION Term Expires Mayor: Jerry Faust December 31, 2019 Council Members: Hal Gray December 31, 2019 Thomas Randle December 31, 2019 Randy Stille December 31, 2021 Jan Jenson December 31, 2021 City Manager: Mark Casey Appointed Finance Director: Shelly Rueckert Appointed December 31, 2018 9 Engineer - WSB & Associates Full-Time Positions = 57 Financial - Ehlers & Associates Part-Time Positions (average) = 50 Legal - Dorsey & Whitney Public Works Seasonal=10 Planner - WSB & Associates Police Reserves (Unpaid) = 12 Building Inspections - City of New Brighton Consultants Parks Commission City Manager 5 Full time Employees 25 Part time Employees FINANCE 2018 ADMINISTRATION 7 Full time Employees 24 Part time Employees MAYOR AND COUNCIL MEMBERS Planning Commission City Clerk POLICE St. Anthony Organizational Chart LIQUOR OPERATIONS Assistant to the City Manager 1 Shared Employee 23 Full time Employees5 Full time Employees 12 Reserve Officers PUBLIC WORKS 14 Full time Employees FIRE 10 Seasonal Employees 10 II. FINANCIAL SECTION 11 - This page intentionally left blank - 12 55 E 5th Street Suite 1400, St. Paul, MN, 55101 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, 2018, 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. 13 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, 2018, 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 2017 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 6, 2018. In our opinion, the summarized comparative information presented herein as of and for the year ended December 31, 2017 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 changes in the City’s total OPEB liability and related ratios, the Schedules of Proportionate Share of Net Pension Liability, the Schedules of Pension Contributions, and the Schedule of Changes in the Net Pension Liability and Related Ratios, on pages 17 – 26 and 94 – 109, 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. 14 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 May 30, 2019, 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 solely to describe the scope of our testing of internal control over financial reporting and compliance and the results of that testing, and not to provide an opinion on the effectiveness of the City of St. Anthony, Minnesota’s 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 May 30, 2019 15 - This page intentionally left blank - 16 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, 2018. 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 $38,637,187 (net position).  The City’s total net position increased by $1,230,573 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 $14,161,600, a decrease of $497,678 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 $2,381,460 or 35% of total General Fund Budget expenditures.  The City of St. Anthony’s total bonded debt decreased by $415,000 (1.29%) during the current fiscal year. The key factors in this decrease were: 1) principal retirement of $3,025,000 and 2) the issuance of $2,610,000 of 2018A G.O. Improvement 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). 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 17 (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 19 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 13 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. 18 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, storm water, 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, storm water, 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, OPEB and pension information. 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 $38,637,187 at the close of the most recent fiscal year. 19 City of St. Anthony, Minnesota’s Net Position Governmental Activities Business-Type Activities Totals 2018 2017 2018 2017 2018 2017 Current and other assets $17,812,154 $19,809,914 $4,039,968 $4,314,460 $21,852,122 $24,124,374 Capital assets 35,371,998 35,203,865 24,047,540 23,184,164 59,419,538 58,388,029 Total assets $53,184,152 $55,013,779 $28,087,508 $27,498,624 $81,271,660 $82,512,403 Total deferred outflows of resources $4,154,761 $5,681,820 $0 $0 $4,154,761 $5,681,820 Long term liabilities outstanding $37,640,959 $38,976,843 $1,056,990 $1,288,644 $38,697,949 $40,265,487 Other liabilities 1,466,143 3,042,302 367,637 528,749 1,833,780 3,571,051 Total liabilities $39,107,102 $42,019,145 $1,424,627 $1,817,393 $40,531,729 $43,836,538 Total deferred inflows of resources $6,257,505 $6,951,071 $0 $0 $6,257,505 $6,951,071 Net position: Invested in capital assets net of related debt $10,422,047 $10,274,946 $23,179,624 $22,151,578 $33,601,671 $32,426,524 Restricted 7,328,810 6,780,816 - - 7,328,810 6,780,816 Unrestricted (5,776,551) (5,330,379) 3,483,257 3,529,653 (2,293,294) (1,800,726) Total net position $11,974,306 $11,725,383 $26,662,881 $25,681,231 $38,637,187 $37,406,614 The City’s net position increased by $1,230,573 in 2018. The increase was primarily due to revenues exceeding expenses. City of St. Anthony, Minnesota’s Changes in Net Position Governmental Activities Business-Type Activities Totals 2018 2017 2018 2017 2018 2017 Revenues: Program revenue: Charges for services $1,602,792 $2,281,654 $8,242,070 $8,003,618 $9,844,862 $10,285,272 Operating grants and contributions 560,924 630,316 - - 560,924 630,316 Capital grants and contributions 817,077 1,604,844 126,991 569,716 944,068 2,174,560 General revenue: Property taxes 7,128,703 6,577,570 - - 7,128,703 6,577,570 Other taxes 1,870,589 1,530,093 - - 1,870,589 1,530,093 Grants and contributions not restricted to specific programs 559,437 535,422 - - 559,437 535,422 Other 560,822 676,616 45,336 94,525 606,158 771,141 Total revenues 13,100,344 13,836,515 8,414,397 8,667,859 21,514,741 22,504,374 Expenses: General government 1,234,274 1,337,698 - - 1,234,274 1,337,698 Public safety 4,886,105 6,018,470 - - 4,886,105 6,018,470 Public works 3,005,637 2,988,291 - - 3,005,637 2,988,291 Parks and recreation 488,132 472,700 - - 488,132 472,700 Housing and redevelopment 1,189,659 787,775 - - 1,189,659 787,775 Interest on long-term debt 795,625 738,914 - - 795,625 738,914 Liquor - - 5,617,377 5,591,683 5,617,377 5,591,683 Water - - 1,573,857 1,176,102 1,573,857 1,176,102 Sewer - - 1,243,591 1,144,273 1,243,591 1,144,273 Stormwater - - 249,911 244,135 249,911 244,135 Total expenses 11,599,432 12,343,848 8,684,736 8,156,193 20,284,168 20,500,041 Excess before transfers 1,500,912 1,492,667 (270,339) 511,666 1,230,573 2,004,333 Transfers (1,251,989) (7,986,616) 1,251,989 7,986,616 - - Increase (decrease) in net position 248,923 (6,493,949) 981,650 8,498,282 1,230,573 2,004,333 Net position - January 1 11,725,383 18,219,332 25,681,231 17,182,949 37,406,614 35,402,281 Net position - December 31 $11,974,306 $11,725,383 $26,662,881 $25,681,231 $38,637,187 $37,406,614 20 Governmental Activities. Governmental activities increased the City of St. Anthony’s net position by $248,923 compared to prior year decrease of $6,493,949. The key element of this change relates to prior year’s change included transfers of $7,986,616 to Business –Type Activities includes the cost of the expanded facility. The facility was completed in 2017 and no further transfers were made in 2018. Additionally, increases in Governmental Activities expenses, for the most part, closely paralleled the combining factors of inflation and growth in the demand for services. 21 Business-type activities. Business-type activities increased net position by $981,650. The key factor for the increase was transfers of $1,251,989 from Governmental-Type Activities Fund to Business-Type activities. 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 $14,161,600, a decrease of $497,678 in comparison with the prior year amounts. The ending fund balance by GASB 54 designation is as follows: Nonspendable $223,991 Restricted 7,466,883 Committed 124,214 Assigned 5,458,103 Unassigned 888,409 Total $14,161,600 22 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 $2,381,460, while total fund balance reached $2,507,764. 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 35% of total General Fund expenditures and total fund balance represents 37% of that same amount. During the current fiscal year, the fund balance in the General Fund increased by $107,650 due to increase of transfers from $200,000 to $357,870. The Street Improvement Debt Service Fund increased by $406,532. Expenditures exceeded revenues by $24,971, however, other financing sources of $431,503 ultimately created an increase in fund balance. The HRA TIF Debt Service Fund decreased by $1,503 due to transferred revenue that covered only principal and interest expenditures. The HRA TIF Improvement Fund increased by $155,224, substantially due to a decrease in Construction and acquisitions costs of $130,329. The Street Improvement Project Funds increased by $268,342 due to transfer revenue of $226,794 received from Enterprise funds for utility related improvements. The Public Utilities Infrastructure Fund decreased by $504,467 substantially due to costs related to fiber expansions, well improvements, and purchase of heavy equipment. Non-major Special Revenue Funds increased by $9,173 resulting in an ending balance of $167,316, substantially due to the increase in general property tax revenue of $6,445. Non-major Debt Service Funds had a total fund balance of $1,080,186, all of which is restricted for the payment of debt service. The net increase in fund balance during the current year in the non-major debt service funds was $33,011, substantially due to transfer revenue of $68,880 received from Enterprise funds for utility related improvements. Non-major Capital Project Funds had a total fund balance of $1,023,945, a decrease of $971,640 from prior year, substantially due to increase in capital related expenditures of $646,721. 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 $26,869,580. The total net position for each fund was: Liquor – $2,184,515; Water and Sewer – $16,669,114; Stormwater Utility - $8,015,951. 23 General Fund Budgetary Highlights Variances from actual to budget can be briefly summarized as follows:  General property taxes were $63,574 greater than budget due to a higher percentage of current tax levy collections were received than was budgeted.  Licenses and permits were $30,678 greater than budget primarily due to higher level of construction related permit activity.  Intergovernmental revenues were $63,388 greater than budget due to grant funding for Fire Department training was greater than budgeted by $18,307; Police Department grants and state aid was greater than budgeted by $35,057.  Charges for services were less than budget by $19,784 mainly due to lower cable franchise fees than budgeted by $17,738.  Planning and Zoning other services and charges were greater than budget by $19,871 due to costs associated with the 2040 comprehensive plan.  Public Works was $52,182 less than budget due to budgeted street sealcoating and crack filling was not required in 2018.  Police protection was $206,901 more than budget due to costs professional costs associated with data practices requests.  Protective Inspections – other services and charges was $28,778 greater than budget due to higher level of construction related permit activity. 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, 2018 amounts to $59,419,538 (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 1.77%. Major capital asset events during the current fiscal year included the following:  The 2017 street reconstruction and infrastructure improvement was completed in 2018 along with the Mirror Lake storm water project.  The 2018 street reconstruction and infrastructure improvements are reflected in construction work in progress along with preliminary costs associated with upcoming flood mitigation projects, utility improvements and sidewalk and trails. 24 City of St. Anthony, Minnesota’s Capital Assets Governmental Activities Business-Type Activities Totals 2018 2017 2018 2017 2018 2017 Land $1,662,883 $1,662,883 $2,089,954 $2,089,954 $3,752,837 $3,752,837 Permanent easements 73,984 - - - 73,984 - Land improvement 587,187 555,181 1,038,687 - 1,625,874 555,181 Buildings and structures 10,105,047 10,105,047 8,467,897 8,372,645 18,572,944 18,477,692 Furniture and fixtures 4,761,555 4,255,778 4,841,674 4,547,552 9,603,229 8,803,330 Software intangibles 23,303 6,823 26,022 26,022 49,325 32,845 Infrastructure/streets 39,489,582 36,041,107 14,896,823 13,763,523 54,386,405 49,804,630 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 (24,526,759) (22,702,055) (9,566,664) (8,703,724) (34,093,423) (31,405,779) Construction in progress 2,766,747 4,850,632 - 835,045 2,766,747 5,685,677 Total $35,371,998 $35,203,865 $24,047,540 $23,184,164 $59,419,538 $58,388,029 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 $31,730,000. Of this amount, $22,040,000 comprises debt backed by special assessments and the full faith and credit of the City, $6,660,000 is backed by tax increments, $2,185,000 is backed by lease revenue sources, and $845,000 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 $846,668, net pension liability of $4,499,785, and OPEB liability of $803,931. City of St. Anthony, Minnesota’s Outstanding Debt General Obligation and Revenue Bonds Governmental Activities Business-Type Activities Totals 2018 2017 2018 2017 2018 2017 General obligation bonds $22,040,000 $21,595,000 $ - $ - $22,040,000 $21,595,000 G.O. revenue bonds 2,185,000 2,510,000 845,000 975,000 3,030,000 3,485,000 G.O. tax increment bonds 6,660,000 7,065,000 - - 6,660,000 7,065,000 Issuance premiums (discounts) 794,649 793,291 22,916 27,424 817,565 820,715 Total $31,679,649 $31,963,291 $867,916 $1,002,424 32,547,565 $32,965,715 The City of St. Anthony’s total bonded debt decreased by $415,000 (1.29%) during the current fiscal year. The key factors in this decrease were: 1) principal retirement of $3,025,000 and 2) the issuance of $2,610,000 of 2018A G.O. Improvement 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 $27,507,354, which is in excess of the City of St. Anthony, Minnesota’s applicable debt. Additional information on the City of St. Anthony, Minnesota’s long-term debt can be found in Note 6. 25 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 2019 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. 26 BASIC FINANCIAL STATEMENTS 27 - This page intentionally left blank - 28 CITY OF ST. ANTHONY, MINNESOTA STATEMENT OF NET POSITION Statement 1 December 31, 2018 With Comparative Totals For December 31, 2017 Governmental Business-Type Activities Activities 2018 2017 Assets: Cash and investments $14,705,310 $2,370,867 $17,076,177 $18,992,195 Accrued interest 41,672 - 41,672 30,964 Due from other governmental units 320,710 11,432 332,142 763,888 Internal balances 206,699 (206,699) - - Accounts receivable - net 25,769 601,647 627,416 624,802 Loans receivable 32,674 - 32,674 41,194 Prepaid items 220,011 29,047 249,058 150,652 Property taxes receivable 191,626 585 192,211 109,995 Special assessments receivable 1,888,670 23,084 1,911,754 1,804,010 Inventories - at cost 3,980 1,210,005 1,213,985 1,320,221 Capital assets - net: Nondepreciable 4,503,614 2,089,954 6,593,568 9,438,514 Depreciable 30,868,384 21,957,586 52,825,970 48,949,515 Net pension asset 175,033 - 175,033 286,453 Total assets 53,184,152 28,087,508 81,271,660 82,512,403 Deferred outflows of resources: Related to other post employment benefits 30,066 - 30,066 - Related to pensions 4,124,695 - 4,124,695 5,681,820 Total deferred outflows of resources 4,154,761 0 4,154,761 5,681,820 Liabilities: Accounts payable 417,813 123,123 540,936 1,962,226 Contracts payable 573,031 - 573,031 889,976 Deposits payable 7,551 59,905 67,456 67,412 Due to other governmental units 24,529 144,702 169,231 179,369 Salaries payable 83,811 32,865 116,676 103,835 Accrued interest payable 359,408 7,042 366,450 368,233 Compensated absences payable: Due within one year 214,247 61,602 275,849 271,652 Due in more than one year 443,347 127,472 570,819 570,204 Bonds and notes payable (net of unamortized premiums and discounts): Due within one year 3,040,000 130,000 3,170,000 3,025,000 Due in more than one year 28,639,649 737,916 29,377,565 29,940,715 Other post employment benefits: Due in more than one year 803,931 - 803,931 722,331 Net pension liability: Due in more than one year 4,499,785 - 4,499,785 5,735,585 Total liabilities 39,107,102 1,424,627 40,531,729 43,836,538 Deferred inflows of resources: Related to pensions 6,257,505 - 6,257,505 6,951,071 Net position: Net investments in capital assets 10,422,047 23,179,624 33,601,671 32,426,524 Restricted for: Debt service 7,097,594 - 7,097,594 6,537,390 Pensions 200,075 - 200,075 219,561 Public safety 31,141 - 31,141 23,865 Unrestricted (5,776,551) 3,483,257 (2,293,294) (1,800,726) Total net position $11,974,306 $26,662,881 $38,637,187 $37,406,614 Total Primary Government The accompanying notes are an integral part of these financial statements. 29 CITY OF ST. ANTHONY, MINNESOTA STATEMENT OF ACTIVITIES For The Year Ended December 31, 2018 With Comparative Totals For The Year Ended December 31, 2017 Program Revenues Charges For Functions/Programs Expenses Services Primary government: Governmental activities: General government $1,234,274 $385,823 Public safety 4,886,105 783,160 Public works 3,005,637 204,897 Parks and recreation 488,132 228,912 Housing and redevelopment 1,189,659 - Interest on long-term debt 795,625 - Total governmental activities 11,599,432 1,602,792 Business-type activities: Liquor 5,617,377 5,867,452 Water/water plant 1,573,857 1,010,722 Sewer 1,243,591 1,162,167 Stormwater 249,911 201,729 Total business-type activities 8,684,736 8,242,070 Total primary government $20,284,168 $9,844,862 The accompanying notes are an integral part of these financial statements. 30 Statement 2 Operating Capital Grants and Grants and Governmental Business-Type Contributions Contributions Activities Activities 2018 2017 $31,277 $ - ($817,174) $ - ($817,174) ($889,024) 388,975 - (3,713,970) - (3,713,970) (4,104,501) 140,672 817,077 (1,842,991) - (1,842,991) (1,076,699) - - (259,220) - (259,220)(230,121) - - (1,189,659) - (1,189,659)(787,775) - - (795,625) - (795,625)(738,914) 560,924 817,077 (8,618,639)0 (8,618,639) (7,827,034) - - - 250,075 250,075 122,317 - - - (563,135)(563,135)(206,464) - - - (81,424)(81,424)(21,535) - 126,991 - 78,809 78,809 522,823 0 126,991 0 (315,675)(315,675)417,141 $560,924 $944,068 (8,618,639)(315,675)(8,934,314) (7,409,893) General revenues: General property taxes 7,128,703 - 7,128,703 6,577,570 Tax increment taxes 1,870,589 - 1,870,589 1,530,093 Grants and contributions not restricted to specific programs 559,437 - 559,437 535,422 Unrestricted investment earnings 286,519 32,771 319,290 256,384 Gain on sale of capital assets 48,529 - 48,529 34,775 Other 225,774 12,565 238,339 479,982 Transfers (1,251,989) 1,251,989 - - Total general revenues and transfers 8,867,562 1,297,325 10,164,887 9,414,226 Change in net position 248,923 981,650 1,230,573 2,004,333 Net position - January 1 11,725,383 25,681,231 37,406,614 35,402,281 Net position - December 31 $11,974,306 $26,662,881 $38,637,187 $37,406,614 Program Revenues Total Primary Government Changes in Net Position Net (Expense) Revenue and The accompanying notes are an integral part of these financial statements. 31 CITY OF ST. ANTHONY, MINNESOTA BALANCE SHEET GOVERNMENTAL FUNDS December 31, 2018 With Comparative Totals For December 31, 2017 General Fund Street Improvement Debt Service Fund HRA TIF Debt Service Assets Cash and investments $2,348,969 $4,448,108 $7,537 Accrued interest 37,166 - - Due from other governmental units 35,909 25,000 - Interfund receivable 93,921 - - Interfund loan receivable - - - Accounts receivable - net 25,036 - - Loans receivable - - - Prepaid items 122,324 - - Property taxes receivable: Delinquent 34,402 13,679 - Due from county 41,638 19,353 - Special assessments receivable 5,754 1,869,543 - Inventories 3,980 - - Total assets $2,749,099 $6,375,683 $7,537 Liabilities, Deferred Inflows of Resources, and Fund Balance Liabilities: Accounts payable $90,794 $ - $ - Contracts payable - - - Deposits payable 4,424 3,127 - Interfund payable - - - Interfund loan payable - - - Due to other governmental units 24,499 - - Salaries payable 81,462 - - Total liabilities 201,179 3,127 0 Deferred inflows of resources: Unavailable revenue 40,156 1,895,923 - Total deferred inflows of resources 40,156 1,895,923 0 Fund balance (deficit): Nonspendable 126,304 - - Restricted - 4,476,633 7,537 Committed - - - Assigned - - - Unassigned 2,381,460 - - Total fund balance (deficit)2,507,764 4,476,633 7,537 Total liabilities, deferred inflows of resources, and fund balance (deficit)$2,749,099 $6,375,683 $7,537 The accompanying notes are an integral part of these financial statements. 32 Statement 3 HRA TIF Improvements Street Improvement Project Fund Public Utilities Infrastructure Other Governmental Funds Intra-Activity Eliminations 2018 2017 $1,450,168 $841,228 $3,027,904 $2,422,152 $ - $14,546,066 $16,326,450 - 4,506 - - - 41,672 30,964 - 88,331 - 171,470 - 320,710 753,412 - - - - (93,921) - - - - 993,046 - (993,046) - - - - - 733 - 25,769 39,311 - - - 32,674 - 32,674 41,194 94,695 - - 2,992 - 220,011 122,147 46,028 - - 7,363 - 101,472 71,377 18,995 - - 10,168 - 90,154 38,245 - - - 13,373 - 1,888,670 1,788,335 - - - - - 3,980 12,843 $1,609,886 $934,065 $4,020,950 $2,660,925 ($1,086,967) $17,271,178 $19,224,278 $8,411 $122,971 $11,413 $184,224 $ - $417,813 $1,675,682 20,188 337,282 67,142 148,419 - 573,031 859,814 - - - - - 7,551 4,042 - 93,921 - - (93,921) - - 959,326 - - 33,720 (993,046) - - - - - 30 - 24,529 66,360 - - - 2,349 - 83,811 76,296 987,925 554,174 78,555 368,742 (1,086,967)1,106,735 2,682,194 46,028 - - 20,736 - 2,002,843 1,882,806 46,028 0 0 20,736 0 2,002,843 1,882,806 94,695 - - 2,992 - 223,991 134,990 1,871,386 - - 1,111,327 - 7,466,883 7,002,918 - - - 124,214 - 124,214 125,069 - 379,891 3,942,395 1,135,817 - 5,458,103 6,568,756 (1,390,148) - - (102,903) - 888,409 827,545 575,933 379,891 3,942,395 2,271,447 0 14,161,600 14,659,278 $1,609,886 $934,065 $4,020,950 $2,660,925 ($1,086,967) $17,271,178 $19,224,278 Fund balance reported above $14,161,600 $14,659,278 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.35,371,998 35,203,865 Other long-term assets are not available to pay for current-period expenditures and, therefore, are reported as unavailable in the funds.2,002,843 1,882,806 Net pension asset related to the Saint Anthony Fire Department Relief Association. 175,033 286,453 Deferred outflows of resources related to the Saint Anthony Fire Department Relief Association.78,816 2,463 Deferred inflows of resources related to the Saint Anthony Fire Department Relief Association.(53,774)(69,355) Long-term liabilities, including bonds payable, are not due and payable in the current period and therefore are not reported in the funds.(32,039,057) (32,943,025) Internal service funds are used by management to charge the cost of employee vacation, severance, pension benefits, and other post employment benefits to individual funds. The assets and liabilities are included in the governmental activities on the statement of net position.(7,723,153) (7,297,102) Net position of governmental activities $11,974,306 $11,725,383 Total Governmental Funds The accompanying notes are an integral part of these financial statements. 33 CITY OF ST. ANTHONY, MINNESOTA STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE GOVERNMENTAL FUNDS For The Year Ended December 31, 2018 With Comparative Totals For The Year Ended December 31, 2017 General Fund Street Improvement Debt Service Fund HRA TIF Debt Service Revenues: General property taxes $4,234,627 $1,833,144 $ - Tax increment collections - - - Licenses, fees and permits 295,955 - - Intergovernmental 1,025,888 - - Special assessments 2,171 588,400 - Charges for services 963,641 - - Cable franchise fees 101,612 - - Fines and forfeits 72,574 - - Investment income 23,866 40,405 - Contributions and donations 3,873 - - Refunds and reimbursements 19,596 - - Miscellaneous 35,559 475 - Total revenues 6,779,362 2,462,424 0 Expenditures: Current: General government 986,885 - - Public safety 4,619,786 - - Public works 922,648 - - Parks and recreation 262,516 - - Nondepartmental 61,262 - - Housing and redevelopment - - - Capital outlay: General government - - - Public safety - - - Public works - - - Parks and recreation - - - Debt service: Principal - 1,985,000 405,000 Interest - 495,303 182,238 Paying agent fees - 4,056 1,502 Professional service - 2,586 - Issuance costs - 450 - Construction/acquisition costs - - - Developer incentives - - - Total expenditures 6,853,097 2,487,395 588,740 Revenues over (under) expenditures (73,735)(24,971)(588,740) Other financing sources (uses): Bonds issued - 64,907 - Refunding bonds issued - - - Premium on bonds issued - - - Sale of capital assets - - - Transfers in 357,870 366,596 587,237 Transfers out (176,485) - - Total other financing sources (uses)181,385 431,503 587,237 Net change in fund balance 107,650 406,532 (1,503) Fund balance - January 1 2,400,114 4,070,101 9,040 Fund balance - December 31 $2,507,764 $4,476,633 $7,537 The accompanying notes are an integral part of these financial statements. 34 Statement 4 HRA TIF Improvements Street Improvement Project Fund Public Utilities Infrastructure Other Governmental Funds Intra-Activity Eliminations 2018 2017 $ - $ - $ - $1,040,176 $ - $7,107,947 $6,633,308 1,861,251 - - - - 1,861,251 1,541,874 - - - - - 295,955 358,230 - 68,602 - 41,966 - 1,136,456 1,925,460 - 64,990 - 2,971 - 658,532 589,332 - - - 134,299 - 1,097,940 1,732,288 - - - - - 101,612 115,079 - - - 12,964 - 85,538 76,057 71,963 24,924 89,010 34,284 - 284,452 233,668 - 11,573 - 600 - 16,046 102,340 - 7,152 9,544 137,245 - 173,537 388,564 - 7,500 - - - 43,534 18,705 1,933,214 184,741 98,554 1,404,505 0 12,862,800 13,714,905 21,815 9,156 - 30,358 - 1,048,214 1,119,746 - - - 241,572 - 4,861,358 5,346,521 - - 29,925 255,659 - 1,208,232 1,034,427 - - - 168,575 - 431,091 406,748 - - - - - 61,262 45,095 11,289 - - 148,966 - 160,255 132,437 - - - 102,507 - 102,507 - - - - 603,056 - 603,056 111,041 - - 285,243 35,906 - 321,149 320,470 - - - 10,705 - 10,705 - - - - 505,000 - 2,895,000 5,815,000 93,150 - - 117,107 - 887,798 846,526 1,488 - - 1,252 - 8,298 5,760 - - - 237 - 2,823 6,677 - 63,123 - - - 63,573 104,887 25,924 2,605,242 89,453 - - 2,720,619 9,908,037 1,029,217 - - - - 1,029,217 649,910 1,182,883 2,677,521 404,621 2,220,900 0 16,415,157 25,853,282 750,331 (2,492,780)(306,067)(816,395)0 (3,552,357) (12,138,377) - 2,545,093 - - - 2,610,000 3,120,000 - - - - - - 2,190,000 - 92,831 - - - 92,831 302,540 - - - 64,754 - 64,754 28,244 - 226,794 - 339,250 (1,590,653)287,094 312,760 (595,107)(103,596)(198,400)(517,065) 1,590,653 - - (595,107) 2,761,122 (198,400)(113,061)0 3,054,679 5,953,544 155,224 268,342 (504,467)(929,456)0 (497,678) (6,184,833) 420,709 111,549 4,446,862 3,200,903 - 14,659,278 20,844,111 $575,933 $379,891 $3,942,395 $2,271,447 $0 $14,161,600 $14,659,278 Total Governmental Funds The accompanying notes are an integral part of these financial statements. 35 CITY OF ST. ANTHONY, MINNESOTA RECONCILIATION OF THE STATEMENT OF REVENUES,Statement 5 EXPENDITURES AND CHANGES IN FUND BALANCES OF GOVERNMENTAL FUNDS For The Year Ended December 31, 2018 With Comparative Amounts For The Year Ended December 31, 2017 2018 2017 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)($497,678) ($6,184,833) 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.1,698,333 7,813,363 The net effect of various miscellaneous transactions involving capital assets (i.e. sales, trade-ins and donations) is to decrease net position, as follows:(7,522) (65,479) Revenues in the statement of activities that do not provide current financial resources are not reported as revenues in the funds.120,037 61,298 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.192,169 152,550 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.92,173 107,612 Transfer out of governmental capital assets contributed to Enterprise Funds.(1,522,678) (8,000,094) Internal Service Funds are used by management to charge the cost of severance pension, and other post employment expenses to individual funds. This amount is the net income attributable to governmental activities.193,575 (398,285) 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 differs from pension contributions: Pension contributions $59,083 Pension expense (78,569) (19,486) 19,919 Change in net position of governmental activities (statement 2)$248,923 ($6,493,949) The accompanying notes are an integral part of these financial statements. 36 CITY OF ST. ANTHONY, MINNESOTA STATEMENT OF NET POSITION Statement 6 PROPRIETARY FUNDS December 31, 2018 With Comparative Totals For Enterprise Funds For December 31, 2017 Governmental Activities - Liquor Water/Sewer/ Water Plant Stormwater Utility Internal Service Fund Assets:2018 2017 Current assets: Cash and cash equivalents $469,542 $1,803,675 $97,650 $2,370,867 $2,559,792 $159,244 Receivables: Accounts - net 8,140 616,591 - 624,731 601,166 - Due from other governmental units - 585 11,432 12,017 10,849 - Prepaid items 12,292 16,755 - 29,047 28,505 - Inventories - at cost 897,494 312,511 - 1,210,005 1,307,378 - Total current assets 1,387,468 2,750,117 109,082 4,246,667 4,507,690 159,244 Noncurrent assets: Capital assets: Land - 5,653 2,084,301 2,089,954 2,089,954 - Land improvements - - 1,038,687 1,038,687 - - Construction in progress - - - - 835,045 - Buildings and structures 1,880,793 6,587,104 - 8,467,897 8,372,645 - Furniture, fixtures and equipment 441,685 4,399,989 - 4,841,674 4,547,552 - Distribution and collection system - 11,380,084 5,769,887 17,149,971 15,852,681 - Software intangibles 26,022 - - 26,022 190,011 - Total capital assets 2,348,500 22,372,830 8,892,875 33,614,205 31,887,888 0 Less: Allowance for depreciation (1,314,538) (7,274,881) (977,246) (9,566,665) (8,703,724) - Net capital assets 1,033,962 15,097,949 7,915,629 24,047,540 23,184,164 0 Total assets 2,421,430 17,848,066 8,024,711 28,294,207 27,691,854 159,244 Deferred outflows of resources: Related to OPEB - - - - - 30,066 Related to pensions - - - - - 4,045,879 Total deferred outflows of resources - - - - - 4,075,945 Liabilities: Current liabilities: Accounts payable 86,700 28,503 7,920 123,123 286,544 - Contracts payable - - - - 30,162 - Due to other governmental units 65,089 78,773 840 144,702 113,009 - Salaries payable 18,231 14,634 - 32,865 27,539 - Accrued interest payable - 7,042 - 7,042 8,125 - Refundable deposits - 59,905 - 59,905 63,370 - Compensated absences payable - current portion 21,795 39,807 - 61,602 59,217 214,247 Bonds and notes payable - current portion - 130,000 - 130,000 130,000 - Total current liabilities 191,815 358,664 8,760 559,239 717,966 214,247 Noncurrent liabilities: Compensated absences payable - noncurrent portion 45,100 82,372 - 127,472 124,298 443,347 Bonds and notes payable - noncurrent portion - 737,916 - 737,916 872,424 - Other post employment benefits liability - - - - 102,705 803,931 Net pension liability - - - - - 4,499,785 Total noncurrent liabilities 45,100 820,288 0 865,388 1,099,427 5,747,063 Total liabilities 236,915 1,178,952 8,760 1,424,627 1,817,393 5,961,310 Deferred inflows of resources: Related to pensions - - - - - 6,203,731 Net position: Net investments in capital assets 1,033,962 14,230,033 7,915,629 23,179,624 22,151,578 - Unrestricted 1,150,553 2,439,081 100,322 3,689,956 3,722,883 (7,929,852) Total net position $2,184,515 $16,669,114 $8,015,951 $26,869,580 $25,874,461 ($7,929,852) Net position reported above $26,869,580 $25,874,461 Adjustment to report the cumulative internal balance for the net effect of activity between the internal service fund and the enterprise funds over time.(206,699) (193,230) Net position of business-type activities (Statement 1)$26,662,881 $25,681,231 Business-Type Activities Enterprise Funds Totals The accompanying notes are an integral part of these financial statements. 37 CITY OF ST. ANTHONY, MINNESOTA STATEMENT OF REVENUES, EXPENSES AND Statement 7 CHANGES IN FUND NET POSITION PROPRIETARY FUNDS For The Year Ended December 31, 2018 With Comparative Totals For Enterprise Funds For The Year Ended December 31, 2017 Governmental Activities - Liquor Water/Sewer/ Water Plant Stormwater Utility Internal Service Fund 2018 2017 Sales $5,867,452 $ - $ - $5,867,452 $5,714,000 $ - Cost of sales (4,344,764) - - (4,344,764) (4,354,933) - Gross profit 1,522,688 0 0 1,522,688 1,359,067 0 Operating revenues: Customer billings - 2,121,689 201,729 2,323,418 2,241,968 - Connection charges - 51,200 - 51,200 47,650 - Charges for services - - - - - 616,737 Total operating revenues 0 2,172,889 201,729 2,374,618 2,289,618 616,737 Total gross profit and operating revenues 1,522,688 2,172,889 201,729 3,897,306 3,648,685 616,737 Operating expenses: Personal services 818,707 879,764 - 1,698,471 1,627,715 458,754 Supplies 317,399 256,513 6,871 580,783 416,067 - Contracted services 50,003 168,643 27,031 245,677 219,261 - Treatment charges (MCES) - 708,567 - 708,567 643,390 - Other 10,358 206,020 - 216,378 193,375 - Depreciation 68,782 578,149 216,009 862,940 630,196 - Total operating expenses 1,265,249 2,797,656 249,911 4,312,816 3,730,004 458,754 Operating income (loss) 257,439 (624,767) (48,182) (415,510) (81,319) 157,983 Nonoperating revenues (expenses): Investment income 7,275 24,620 876 32,771 21,812 2,067 Intergovernmental revenue - - - - - 36,461 Interest expense - (12,609) - (12,609) (15,200) - Fees and cost of issuance - (1,078) - (1,078) (603) - Refunds and reimbursements - 3,753 - 3,753 4,495 - Miscellaneous revenue 1,357 6,105 1,350 8,812 68,218 - Total nonoperating revenues (expenses)8,632 20,791 2,226 31,649 78,722 38,528 Income (loss) before capital contributions, transfers and special items 266,071 (603,976) (45,956) (383,861) (2,597) 196,511 Capital contributions, transfers and special item: Capital contributions 18,060 1,224,256 280,362 1,522,678 8,385,676 - Capital contributions - intergovernmental - - 126,991 126,991 569,716 - Transfers in 52,738 49,967 - 102,705 - 86,300 Transfers out (250,000) - (123,394) (373,394) (399,060) (102,705) Special item - - - - - (619,626) Total capital contributions, (179,202) 1,274,223 283,959 1,378,980 8,556,332 (636,031) transfers and special items Change in net position 86,869 670,247 238,003 995,119 8,553,735 (439,520) Net position - January 1 2,097,646 15,998,867 7,777,948 25,874,461 17,320,726 (7,490,332) Net position - December 31 $2,184,515 $16,669,114 $8,015,951 $26,869,580 $25,874,461 ($7,929,852) Change in net position reported for business-type activities above $995,119 $8,553,735 Transfer in of capital assets from governmental activities 1,522,678 8,000,094 Transfer in of inventory from governmental activities - 385,582 Portion of contribution revenue reported above (1,522,678) (8,385,676) Adjustment for the net effect of the current year activity between the internal service fund and the enterprise funds.(13,469) (55,453) Change in net position of business-type activities (Statement 2)$981,650 $8,498,282 Business-Type Activities Enterprise Funds Totals The accompanying notes are an integral part of these financial statements. 38 CITY OF ST. ANTHONY, MINNESOTA STATEMENT OF CASH FLOWS Statement 8 PROPRIETARY FUNDS For The Year Ended December 31, 2018 With Comparative Totals For Enterprise Funds For The Year Ended December 31, 2017 Governmental Activities - Liquor Water/Sewer/ Water Plant Stormwater Utility Internal Service Fund 2018 2017 Cash flows from operating activities: Receipts from customers and users $5,864,410 $2,152,366 $200,327 $8,217,103 $7,935,360 $ - Receipts from interfund charges for pension benefits - - - - - 594,990 Payment to suppliers (4,816,804) (1,278,159) (69,730) (6,164,693) (5,826,248) - Payment to employees (816,368) (871,218) - (1,687,586) (1,594,083) (630,066) Miscellaneous revenue 1,524 9,925 1,350 12,799 239,476 - Net cash flows provided by (used in) operating activities 232,762 12,914 131,947 377,623 754,505 (35,076) Cash flows from noncapital financing activities: Transfer from General Fund - - - - - 86,300 Transfer to General Fund (250,000) - - (250,000) (249,060) - Transfer to Debt Service Funds - - (123,394) (123,394) (150,000) - Net cash flows provided by (used in) noncapital financing activities (250,000)0 (123,394) (373,394) (399,060) 86,300 Cash flows from capital and related financing activities: Intergovernmental revenue - capital - - 126,991 126,991 569,716 - Acquisition of capital assets - - (203,642) (203,642) (596,126) - Principal paid on debt - (130,000) - (130,000) (125,000) - Interest paid on debt - (19,274) - (19,274) (21,355) - Net cash flows provided by (used in) capital and related financing activities 0 (149,274) (76,651) (225,925) (172,765)0 Cash flows from investing activities: Investment income 7,275 24,620 876 32,771 21,812 2,067 Net increase (decrease) in cash and cash equivalents (9,963) (111,740) (67,222) (188,925) 204,492 53,291 Cash and cash equivalents - January 1 479,505 1,915,415 164,872 2,559,792 2,355,300 105,953 Cash and cash equivalents - December 31 $469,542 $1,803,675 $97,650 $2,370,867 $2,559,792 $159,244 Reconciliation of operating income (loss) to net cash provided (used) by operating activities: Operating income (loss) $257,439 ($624,767) ($48,182) ($415,510) ($81,319) $157,983 Adjustments to reconcile operating income (loss) to net cash flows from operating activities: Miscellaneous revenue 1,357 9,858 1,350 12,565 239,476 - Depreciation 68,782 578,149 216,009 862,940 630,196 - Changes in assets and liabilities: Decrease (increase) in receivables (2,875) (20,456) (1,402) (24,733) (68,258) - Decrease (increase) in prepaid items 498 (1,040) - (542) 2,622 - Decrease (increase) in inventory (50,205) 147,578 - 97,373 (78,696) - Decrease (increase) in deferred outflows of resources - - - - - 1,603,412 Increase (decrease) in payables (42,234) (76,408) (35,828) (154,470) 110,484 (747) Increase (decrease) in OPEB liability - - - - - 81,600 Increase (decrease) in net pension liability - - - - - (1,199,339) Increase (decrease) in deferred inflows of resources - - - - - (677,985) Total adjustments (24,677) 637,681 180,129 793,133 835,824 (193,059) Net cash provided by operating activities $232,762 $12,914 $131,947 $377,623 $754,505 ($35,076) Noncash investing, capital and financing activities: Assets in the amount of $18,060 and $10,765 were contributed to the Liquor Fund in 2018 and 2017, respectively. Assets in the amount of $1,224,256 and $7,752,439 were contributed to the Water/Sewer/Water Plant Fund in 2018 and 2017, respectively. Assets in the amount of $280,362 and $236,890 were contributed to the Stormwater Utility Fund in 2018 and 2017, respectively. Totals Business-Type Activities Enterprise Funds The accompanying notes are an integral part of these financial statements. 39 CITY OF ST. ANTHONY, MINNESOTA STATEMENT OF FIDUCIARY NET POSITION Statement 9 FIDUCIARY FUND - DEVELOPERS DEPOSIT December 31, 2018 With Comparative Totals For December 31, 2017 2018 2017 Assets: Cash and investments $ - $ - Accounts receivable - net 16,017 22,942 Total assets $16,017 $22,942 Liabilities: Cash deficit $14,275 $14,942 Deposits payable 1,742 8,000 Total liabilities $16,017 $22,942 The accompanying notes are an integral part of these financial statements. 40 CITY OF ST. ANTHONY, MINNESOTA NOTES TO FINANCIAL STATEMENTS December 31, 2018 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 activities) 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 activity. Taxes and other items not included among program revenues are reported instead as general revenues. 41 CITY OF ST. ANTHONY, MINNESOTA NOTES TO FINANCIAL STATEMENTS December 31, 2018 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. The HRA TIF Improvement Fund was established to account for the construction and redevelopment costs within the City. 42 CITY OF ST. ANTHONY, MINNESOTA NOTES TO FINANCIAL STATEMENTS December 31, 2018 The Street Improvement Project 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 and other post employment benefits to other departments of the City on a cost reimbursement basis. Agency Fund - the Developers Deposit 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. Proprietary funds distinguish operating revenues and expenses from nonoperating items. Operating revenues and expenses generally result from providing services and producing and delivering goods in connection with a proprietary fund’s principal ongoing operations. The principal operating revenues of the liquor, water and sewer enterprise funds are charges to customers for sales and services. Operating expenses for enterprise funds include the cost of sales and services, administrative expenses, and depreciation on capital assets. All revenues and expenses not meeting this definition are reported as nonoperating revenues and expenses. When both restricted and unrestricted resources are available for an allowable use, it is the City’s policy to use restricted resources first, then unrestricted resources as they are needed. 43 CITY OF ST. ANTHONY, MINNESOTA NOTES TO FINANCIAL STATEMENTS December 31, 2018 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 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. 44 CITY OF ST. ANTHONY, MINNESOTA NOTES TO FINANCIAL STATEMENTS December 31, 2018 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 $83,873 $93,537 $9,664 Finance 365,625 371,304 5,679 Planning and zoning 53,672 73,543 19,871 Police protection 3,096,086 3,302,987 206,901 Fire protection 1,100,021 1,105,289 5,268 Protective inspections 94,430 123,208 28,778 Park maintenance 204,469 210,340 5,871 Nondepartmental 38,086 61,262 23,176 Nonmajor Funds: Special Revenue Funds: Police forfeiture fund 6,781 7,170 389 Recycling fund 21,686 21,873 187 HRA fund 145,817 148,966 3,149 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. 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, 2018 are 45 CITY OF ST. ANTHONY, MINNESOTA NOTES TO FINANCIAL STATEMENTS December 31, 2018 planned to be eliminated in 2019. 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 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 46 CITY OF ST. ANTHONY, MINNESOTA NOTES TO FINANCIAL STATEMENTS December 31, 2018 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 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. 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. 47 CITY OF ST. ANTHONY, MINNESOTA NOTES TO FINANCIAL STATEMENTS December 31, 2018 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, 2018, no interest was capitalized in connection with construction in progress. The City implemented GASB Statement No. 51, Accounting and Financial Reporting for Intangible Assets 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. 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. 48 CITY OF ST. ANTHONY, MINNESOTA NOTES TO FINANCIAL STATEMENTS December 31, 2018 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. 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. 49 CITY OF ST. ANTHONY, MINNESOTA NOTES TO FINANCIAL STATEMENTS December 31, 2018 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, 2017, 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 City has two items that qualifies for reporting in this category. They are the pension related deferred outflows of resources and the OPEB 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, tax increment and intergovernmental revenue. 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. 50 CITY OF ST. ANTHONY, MINNESOTA NOTES TO FINANCIAL STATEMENTS December 31, 2018 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 ($32,039,057) difference is as follows: Bonds payable ($30,885,000) Accrued interest payable (359,408) Unamortized bond premium (794,649) Net adjustment to reduce fund balance - total governmental funds to arrive at net position - governmental activities.($32,039,057) 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 $1,698,333 difference is as follows: Capital outlay $1,037,417 Construction/acquisition costs 2,720,619 Construction/acquisition costs not capitalized (53,491) Depreciation expense (2,006,212) Net adjustment to increase net changes in fund balances - total governmental funds to arrive at changes in net position of governmental activities. $1,698,333 51 CITY OF ST. ANTHONY, MINNESOTA NOTES TO FINANCIAL STATEMENTS December 31, 2018 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 ($7,522) 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. ($7,522) Net adjustment to decrease net changes in fund balances - total governmental funds to arrive at changes in net position of governmental activities. ($7,522) 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 $120,037 difference is as follows: Unavailable revenue - general property taxes: At December 31, 2017 ($34,687) At December 31, 2018 55,444 Unavailable revenue - tax increment taxes: At December 31, 2017 (36,690) At December 31, 2018 46,028 Unavailable revenue - special assessments: At December 31, 2017 (1,786,429) At December 31, 2018 1,876,371 Unavailable revenue - intergovernmental: At December 31, 2017 (25,000) At December 31, 2018 25,000 Net adjustments to increase net changes in fund balances - total governmental funds to arrive at changes in net position of governmental activities.$120,037 52 CITY OF ST. ANTHONY, MINNESOTA NOTES TO FINANCIAL STATEMENTS December 31, 2018 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 $192,169 difference is as follows: Debt issued or incurred: Issuance of general obligation bonds ($2,610,000) Premium on issued bonds (92,831) Principal repayments 2,895,000 Net adjustment to increase net changes in fund balances - total governmental funds to arrive at changes in net position of governmental activities. $192,169 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 $92,173 difference is as follows: Accrued interest $700 Amortization of bond premium 91,473 Net adjustment to increase net changes in fund balances - total governmental funds to arrive at changes in net position of governmental activities.$92,173 Note 2 DEPOSITS AND INVESTMENTS A. DEPOSITS In accordance with Minnesota Statutes, the City maintains deposits at those depository banks authorized by the City Council, all of which are members of the Federal Reserve System. Minnesota Statutes require that all City deposits be protected by insurance, surety bond, or collateral. The market value of collateral pledged must equal 110% of the deposits not covered by insurance or bonds. Minnesota Statutes require that securities pledged as collateral be held in safekeeping by the City Treasurer or in a financial institution other than that furnishing the collateral. Authorized collateral includes the following: a) United States government treasury bills, treasury note and treasury bonds; b) Issues of United States government agencies and instrumentalities as quoted by a recognized industry quotation service available to the government entity; 53 CITY OF ST. ANTHONY, MINNESOTA NOTES TO FINANCIAL STATEMENTS December 31, 2018 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, 2018, the bank balance of the City’s deposits was covered by federal depository insurance. B. INVESTMENTS Minnesota Statutes authorize the City to invest in the following: a) Direct obligations or obligations guaranteed by the United States or its agencies, its instrumentalities or organizations created by an act of congress, excluding mortgage-backed securities defined as high risk. b) Shares of investment companies registered under the Federal Investment Company Act of 1940 and whose only investments are in securities described in (a) above, general obligation tax-exempt securities, or repurchase or reverse repurchase agreements. c) State and local securities as follows: 1) any security which is a general obligation of any state or local government with taxing powers which is rated “A” or better by a national bond rating service; 2) any security which is a revenue obligation of any state or local government with taxing powers which is rated “AA” or better by a national bond rating service; and 3) a general obligation of the Minnesota Housing Finance Agency which is a moral obligation of the State of Minnesota and is rated “A” or better by a national bond rating agency. d) Bankers acceptances of United States banks 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. 54 CITY OF ST. ANTHONY, MINNESOTA NOTES TO FINANCIAL STATEMENTS December 31, 2018 As of December 31, 2018, 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 $745,674 $ - $745,674 $ - $ - Federal National Meeting Association AAA 250,206 - 250,206 - - Money market funds NR 3,266,100 3,266,100 - - - External investment pool - 4M Fund NR 1,824,213 1,824,213 - - - External investment pool - 4M Plus Fund NR 809,551 809,551 - - - External investment pool - 4M Fixed Income Fund NR 489,200 489,200 - - - Municipal Securities AA - AAA 762,802 296,958 465,844 - - Brokered Certificates of Deposit NR 8,641,472 2,884,047 5,448,291 309,134 - Total $16,789,218 $9,570,069 $6,910,015 $309,134 $0 NR - Not Rated Total investments $16,789,218 Total deposits 267,384 Petty cash 5,300 Total cash and investments $17,061,902 Investment Maturities (in Years) Following is a reconciliation of the City’s cash and investment balances as of December 31, 2018: Cash and investments $17,076,177 Cash and investments - fiduciary fund (14,275) $17,061,902 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 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, 2018: Investment Type 12/31/18 Level 1 Level 2 Level 3 Investments at fair value: Brokered Certificates of Deposit $8,641,472 $ - $8,641,472 $ - Municipal Securities 762,802 - 762,802 - Federal Home Loan Mortgage Corporation 745,674 - 745,674 - Federal National Mortgage Association 250,206 - 250,206 Total/Subtotal 10,400,154 $0 $10,400,154 $0 Investments not categorized: External investment pool - 4M, 4M Plus, 4M Fixed Income Funds 3,122,964 Money market funds 3,266,100 Total $16,789,218 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 55 CITY OF ST. ANTHONY, MINNESOTA NOTES TO FINANCIAL STATEMENTS December 31, 2018 subject to a penalty equal to 7 days interest on the amount withdrawn. In regards to the 4M Fixed Income Fund, redemption of a CD prior to the maturity may result in early withdrawal penalties. 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. 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. 56 CITY OF ST. ANTHONY, MINNESOTA NOTES TO FINANCIAL STATEMENTS December 31, 2018 Note 3 RECEIVABLES Significant receivables balances not expected to be collected within one year of December 31, 2018 are as follows: Street Improvement HRA TIF Nonmajor General Debt Service Improvements Funds Total Special assessments receivable $ - $1,670,200 $ - $11,100 $1,681,300 Delinquent property taxes 19,720 7,820 - 4,230 31,770 Delinquent tax increment - - 36,100 - 36,100 $19,720 $1,678,020 $36,100 $15,330 $1,749,170 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 Intergovernmental Total Major Fund: General Fund $34,402 $5,754 $ - $ - $40,156 Street Improvement Debt Service 13,679 1,857,244 - 25,000 1,895,923 HRA TIF Improvements - - 46,028 - 46,028 Nonmajor Funds 7,363 13,373 - - 20,736 Total unavailale revenue $55,444 $1,876,371 $46,028 $25,000 $2,002,843 57 CITY OF ST. ANTHONY, MINNESOTA NOTES TO FINANCIAL STATEMENTS December 31, 2018 Note 5 CAPITAL ASSETS Capital asset activity for the year ended December 31, 2018 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 Permanent easements - 73,984 - 73,984 Construction in progress 4,850,632 2,720,619 (4,804,504) 2,766,747 Total capital assets, not being depreciated 6,513,515 2,794,603 (4,804,504) 4,503,614 Capital assets, being depreciated: Buildings and improvements 10,105,047 - - 10,105,047 Land improvement 555,181 32,006 - 587,187 Furniture, fixtures and equipment (including software)4,255,778 706,386 (200,609) 4,761,555 Streets 36,041,107 3,448,475 - 39,489,582 Storm sewers 428,469 - - 428,469 Intangible assets 6,823 16,480 - 23,303 Total capital assets, being depreciated 51,392,405 4,203,347 (200,609) 55,395,143 Less accumulated depreciation/amortization for: Buildings and improvements 4,650,241 313,338 - 4,963,579 Land improvement 333,371 46,060 - 379,431 Furniture, fixtures and equipment 3,131,075 219,585 (181,508) 3,169,152 Streets 14,427,141 1,408,725 - 15,835,866 Storm sewers 156,132 17,139 - 173,271 Intangible assets 4,095 1,365 - 5,460 Total accumulated depreciation/amortization 22,702,055 2,006,212 (181,508) 24,526,759 Total capital assets being depreciated - net 28,690,350 2,197,135 (19,101) 30,868,384 Governmental activities capital assets - net $35,203,865 $4,991,738 ($4,823,605) $35,371,998 58 CITY OF ST. ANTHONY, MINNESOTA NOTES TO FINANCIAL STATEMENTS December 31, 2018 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 835,045 203,642 (1,038,687) - Total capital assets, not being depreciated 2,924,999 203,642 (1,038,687) 2,089,954 Capital assets, being depreciated: Buildings and structures 8,372,645 95,252 - 8,467,897 Land improvements - 1,038,687 - 1,038,687 Furniture, fixtures and equipment 4,547,552 294,122 - 4,841,674 Software and intangibles 26,022 - - 26,022 Stormwater 2,253,147 - - 2,253,147 Distribution and collection system 13,763,523 1,133,300 - 14,896,823 Total capital assets, being depreciated 28,962,889 2,561,361 0 31,524,250 Less accumulated depreciation for: Buildings and structures 2,229,588 201,758 - 2,431,346 Furniture, fixtures and equipment 921,411 168,314 - 1,089,725 Software and intangibles 26,022 - - 26,022 Stormwater 641,258 51,918 - 693,176 Distribution and collection system 4,885,445 440,950 - 5,326,395 Total accumulated depreciation 8,703,724 862,940 0 9,566,664 Total capital assets being depreciated - net 20,259,165 1,698,421 0 21,957,586 Business-type activities capital assets - net $23,184,164 $1,902,063 ($1,038,687) $24,047,540 Depreciation/amortization expense was charged to functions/programs of the primary government as follows: Governmental activities: General government $111,552 Public safety 182,016 Public works, including depreciation of general infrastructure assets 1,655,823 Parks and recreation 56,821 Total depreciation/amortization expense - governmental activities 2,006,212 Business-type activities: Liquor 68,782 Water/Water Plant 478,190 Sewer 99,959 Stormwater 216,009 Total depreciation/amortization expense - business-type activities 862,940 Total depreciation expense $2,869,152 59 CITY OF ST. ANTHONY, MINNESOTA NOTES TO FINANCIAL STATEMENTS December 31, 2018 CONSTRUCTION COMMITMENTS At December 31, 2018, 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 2018 Street Improvements $2,515,637 $569,517 Silver Lake Road Street Lights 461,300 22,392 $591,909 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, 2018. 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. 60 CITY OF ST. ANTHONY, MINNESOTA NOTES TO FINANCIAL STATEMENTS December 31, 2018 GOVERNMENTAL ACTIVITIES As of December 31, 2018, the long-term debt of the financial reporting entity consisted of the following: Final Interest Issue Maturity Original Payable Rates Date Date Issue 12/31/18 G.O. Improvement Bonds: G.O. Improvement Bonds, Series 2010A 2.25-3.625% 5/20/2010 2/1/2026 $1,375,000 $815,000 G.O. Improvement Bonds, Series 2011A 3.00-4.00% 4/12/2011 2/1/2027 2,955,000 1,415,000 G.O. Improvement Refunding Bonds, Series 2011B 0.40-2.00% 12/29/2011 2/1/2021 2,210,000 665,000 G.O. Improvement Bonds, Series 2013B 0.45-2.625% 4/23/2013 2/1/2029 1,775,000 1,315,000 G.O. Improvement Bonds, Series 2014A 2.00-3.30% 4/10/2014 2/1/2030 2,070,000 1,690,000 G.O. Improvement Bonds, Series 2015A 2.00-3.00% 5/19/2015 2/1/2031 2,580,000 2,270,000 G.O. Improvement Bonds, Series 2016A 2.00-2.75% 6/2/2016 2/1/2032 1,455,000 1,370,000 G.O. Improvement Refunding Bonds, Series 2017A 3.00% 5/18/2017 2/1/2033 1,355,000 1,195,000 G.O. Improvement Bonds, Series 2017A 3.00% 5/18/2017 2/1/2033 2,600,000 2,600,000 G.O. Improvement Bonds, Series 2018A 3.00-4.00% 5/15/2018 2/1/2034 2,610,000 2,610,000 Total improvement bonds 20,985,000 15,945,000 G.O. Street Reconstruction Bonds: G.O. Street Reconstruction Refunding Bonds, Series 2014C 2.00-3.00% 7/24/2014 2/1/2024 1,305,000 895,000 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 3,030,000 G.O. Tax Increment Refunding Bonds, Series 2015B 2.00-3.00% 12/29/2015 2/1/2031 4,310,000 3,630,000 Total tax increment revenue bonds 7,975,000 6,660,000 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 2,185,000 G.O. Tax Abatement Bonds: G.O. Tax Abatement Bonds, Series 2016B 2.00% 6/2/2016 2/1/2026 1,445,000 720,000 G.O. Tax Abatement Refunding Bonds, Series 2017A 3.00% 5/18/2017 2/1/2025 835,000 740,000 Total tax abatement bonds 2,280,000 1,460,000 G.O. Equipment Certificates: G.O. Equipment Certificate, Series 2017A 3.00% 5/18/2017 2/1/2027 520,000 520,000 G.O. Bonds: G.O. Refunding Bonds, Series 2012A 2.00-2.75% 4/25/2012 2/1/2028 5,440,000 3,220,000 Issuance premiums (discounts)N/A 794,649 Total - bonded indebtedness 42,500,000 31,679,649 Compensated absences payable - 657,594 Total City indebtedness - governmental activities $42,500,000 $32,337,243 61 CITY OF ST. ANTHONY, MINNESOTA NOTES TO FINANCIAL STATEMENTS December 31, 2018 BUSINESS-TYPE ACTIVITIES Final Interest Maturity Original Payable Rates Date Date Issue 12/31/18 Revenue Bonds: G.O. Water and Sewer Revenue Refunding Bonds, Series 2013A 2.00%4/16/2003 2/1/2024 $1,440,000 $845,000 Issuance premiums (discounts)N/A 22,916 Total - bonded indebtedness 1,440,000 867,916 Compensated absences - 189,074 Total City indebtedness - business-type activities 1,440,000 1,056,990 Total City indebtedness $43,940,000 $33,394,233 Annual debt service requirements to maturity for long-term debt are as follows: Year Ending December 31 Principal Interest Principal Interest 2019 1,415,000 452,329 500,000 65,050 2020 1,440,000 398,393 515,000 54,900 2021 1,330,000 363,038 530,000 44,450 2022 1,220,000 328,761 545,000 33,564 2023 1,255,000 293,783 320,000 24,457 2024 1,280,000 256,864 155,000 19,155 2025 1,310,000 218,413 160,000 15,332 2026 1,150,000 180,923 160,000 11,253 2027 1,060,000 147,554 165,000 6,944 2028 915,000 119,498 170,000 2,338 2029 940,000 93,494 - - 2030 830,000 67,734 - - 2031 685,000 45,056 - - 2032 505,000 26,994 - - 2033 405,000 12,988 - - 2034 205,000 3,331 Total $15,945,000 $3,009,153 $3,220,000 $277,443 G.O. Improvement Bonds Governmental Activities G.O. Refunding Bonds 62 CITY OF ST. ANTHONY, MINNESOTA NOTES TO FINANCIAL STATEMENTS December 31, 2018 Year Ending December 31 Principal Interest Principal Interest Principal Interest 2019 335,000 42,490 420,000 173,988 370,000 69,200 2020 345,000 35,690 445,000 165,438 380,000 60,225 2021 355,000 28,690 450,000 156,487 390,000 51,000 2022 370,000 21,348 475,000 146,212 400,000 41,338 2023 385,000 13,320 495,000 134,412 410,000 30,650 2024 395,000 4,542 510,000 122,062 430,000 18,975 2025 - - 530,000 109,313 275,000 9,350 2026 - - 555,000 95,700 155,000 3,825 2027 - - 580,000 80,081 65,000 975 2028 - - 605,000 62,975 - - 2029 - - 635,000 43,787 - - 2030 - - 655,000 23,025 - - 2031 - - 305,000 4,876 - - Total $2,185,000 $146,080 $6,660,000 $1,318,356 $2,875,000 $285,538 All Other General Obligation Bonds Governmental Activities Refunding Bonds Tax IncrementLease Revenue Bonds Year Ending December 31 Principal Interest 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 $845,000 $52,250 Revenue Bonds Business-Type Activities It is not practicable to determine the specific year for payment of long-term accrued compensated absences. 63 CITY OF ST. ANTHONY, MINNESOTA NOTES TO FINANCIAL STATEMENTS December 31, 2018 CHANGE IN LONG-TERM LIABILITIES Long-term liability activity for the year ended December 31, 2018, was as follows: Beginning Ending Due Within Balance Additions Reductions Balance One Year Governmental activities: Bonds payable: G.O. improvement debt $14,690,000 $2,610,000 ($1,355,000) $15,945,000 $1,415,000 G.O. refunding bonds 3,710,000 - (490,000) 3,220,000 500,000 G.O. street reconstruction bonds 1,035,000 - (140,000) 895,000 140,000 G.O. tax abatement bonds 1,640,000 - (180,000) 1,460,000 180,000 G.O. tax increment refunding bonds 7,065,000 - (405,000) 6,660,000 420,000 G.O. lease revenue refunding bonds 2,510,000 - (325,000) 2,185,000 335,000 G.O. equipment certificates 520,000 - - 520,000 50,000 Total bonds payable - governmental activities 31,170,000 2,610,000 (2,895,000) 30,885,000 3,040,000 Issuance premiums (discounts)793,291 92,831 (91,473) 794,649 - Total bonded indebtedness 31,963,291 2,702,831 (2,986,473) 31,679,649 3,040,000 Compensated absences 658,341 382,589 (383,336) 657,594 214,247 Total governmental activities long-term liabilities $32,621,632 $3,085,420 ($3,369,809) $32,337,243 $3,254,247 Business-type activities: Revenue bonds $975,000 $ - ($130,000) $845,000 $130,000 Total bonds payable - business-type activities 975,000 0 (130,000)845,000 130,000 Issuance premiums (discounts)27,424 - (4,508) 22,916 - Total bonded indebtedness 1,002,424 0 (134,508) 867,916 130,000 Compensated absences 183,515 99,852 (94,293) 189,074 61,602 Total business-type activities long-term liabilities $1,185,939 $99,852 ($228,801) $1,056,990 $191,602 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, 2018 is backed by the full faith and credit of the City, including improvement and revenue bond issues. Delinquent assessments receivable at December 31, 2018 totaled $21,439. 64 CITY OF ST. ANTHONY, MINNESOTA NOTES TO FINANCIAL STATEMENTS December 31, 2018 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 2018A Road Improvements 2018 road construction Special Assessments 24%N/A 2018-2034 $3,408,382 $ - $197,452 Property tax levy 76% 2017A Tax Abatement Refunding of 2009A Tax abatement revenue 100% N/A 2017-2025 821,450 123,705 123,155 Emerald Park improvements 2017A Road Improvements Refunding of 2009A Special assessments 21%N/A 2017-2025 1,325,575 206,493 165,666 Refunding road reconstruction Property tax levy 79% 2010A Road Improvements 2010 road construction Special assessments 9%N/A 2010-2026 932,183 99,734 97,608 Property tax levy 91% 2011A Road Improvements 2011 road construction Special assessments 25% N/A 2011 - 2027 1,494,888 167,600 130,832 Property tax levy 75% 2012A Road Improvements 2012 road construction Special assessments 25%N/A 2012 - 2028 3,497,443 564,950 523,800 Refunding Road improvement Property tax levy 75% Bonds 2006A,2007A 2012A Lease Revenue 2012 building improvements Property tax levy 100%N/A 2012 - 2024 2,331,080 374,090 345,081 Refunding Lease Revenue Bonds 2003A 2013B Road Improvements 2013 road construction Special assessments 25% N/A 2013 - 2029 1,484,370 141,320 90,317 Property tax levy 75% 2014A Road Improvements 2014 road construction Special assessments 25%N/A 2014 - 2030 2,006,200 177,830 178,431 Property tax levy 75% 2015A Road Improvements 2015 road construction Special assessments 15%N/A 2015-2031 2,658,419 209,862 192,310 Property tax levy 85% 2016A Road Improvements 2016 road reconstruction Special assessments 14% N/A 2016 - 2032 1,595,656 115,387 149,357 Property tax levy 86% 2016B Tax Abatement Mirror Lake improvements and Tax abatement revenue 100% N/A 2016 - 2026 778,600 100,250 103,974 pedestrian safety improvements Revenue Pledged Current Year 65 CITY OF ST. ANTHONY, MINNESOTA NOTES TO FINANCIAL STATEMENTS December 31, 2018 2017A Road Improvements 2017 road reconstruction Special assessments 16%N/A 2017 - 2033 3,220,100 93,817 267,248 Property tax levy 84% 2017A Equipment Certificate 2017 Equipment note Tax abatement revenue 100% N/A 2017 - 2033 593,350 18,763 232,550 2014C Road Improvements Refunding of 2008A Property tax levy 100% N/A 2014 - 2024 967,138 162,825 154,554 Silver Lake Road improvements 2009B Road Improvements Refunding of 2001B and 2002A Special assessments 7%N/A 2009-2018 - 120,140 - Refunding Road Improvement Bonds Property tax levy 93% 2015B TIF Refunding 2006B TIF Bonds TIF 100% N/A 2015-2031 4,304,294 316,912 448,879 2014B TIF Refunding 2007 TIF Bonds TIF 100% N/A 2015 -2031 3,674,063 270,325 383,155 2013A G.O. Water/Sewer Refunding 2003B G.O. Charges for services 100% 42% 2013-2024 897,250 148,200 2,121,689 Revenue Water/Sewer Revenue Bonds 2011A Road Improvements Refunding 2003A Street Special assessments 22%N/A 2011 - 2026 147,356 146,813 104,896 Refunding Improvement Bonds Property tax levy 78% 2011B Road Improvements Refunding 2004A and 2005A Special assessments 25%N/A 2012 - 2020 681,025 273,530 189,468 Refunding Street Improvement Bonds Property tax levy 75% 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 the Coordinated Plan. Coordinated Plan members are covered by Social Security. 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. 66 CITY OF ST. ANTHONY, MINNESOTA NOTES TO FINANCIAL STATEMENTS December 31, 2018 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. 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 Plan members. Members hired prior to July 1, 1989, receive the higher of Method 1 or Method 2 formulas. Only Method 2 is used for members hired after June 30, 1989. Under Method 1, the accrual rate for Coordinated Plan members is 1.2% for each of the first ten years of service and 1.7% for each additional year. Under Method 2, the accrual rate for Coordinated Plan members is 1.7% for all years of service. The accrual rates for former Minneapolis Employee Retirement Fund (MERF) members is 2.0% for each of the first 10 years of service and 2.5% for each additional year. 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. Beginning January 1, 2019, benefit recipients will receive a future annual increase equal to 50% of the Social Security Cost of Living Adjustment, not less than 1.0% and not more than 1.5%. For retirements on or after January 1, 2024, the first benefit increase is delayed until the retiree reaches Normal Retirement Age (not applicable to Rule of 90 retirees, disability benefit recipients, or survivors). A benefit recipient who has been receiving a benefit for at least 12 full months as of June 30 will receive a full increase. Members receiving benefits for at least one month but less than 12 full months as of June 30 will receive a pro rata increase. 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. Beginning in 2019, the COLA will be fixed at 1%. Under funding measurements from 2017, the 2.5% COLA trigger was never expected to occur and was subsequently removed from law. Post retirement increases are given each year except for annuitants who have been receiving a benefit for only 31 to 41 months. These annuitants will receive a prorated amount of the increase on a sliding scale. CONTRIBUTIONS Minnesota Statutes Chapter 353 sets the rates for employer and employee contributions. Contribution rates can only be modified by the state legislature. 67 CITY OF ST. ANTHONY, MINNESOTA NOTES TO FINANCIAL STATEMENTS December 31, 2018 1. GERF Contributions Coordinated Plan members were required to contribute 6.50% of their annual covered salary in fiscal year 2018; the City was required to contribute 7.50% for Coordinated Plan members. The City’s contributions to the GERF for the year ended December 31, 2018, were $175,748. The City’s contributions were equal to the required contributions as set by state statute. 2. PEPFF Contributions Legislation increased both employee and employer contribution rates in the Police and Fire Plan. Employee rates increased from 10.80% of pay to 11.30% and employer rates increase from 16.20% to 16.95% on January 1, 2019. On January 1, 2020 employee rates increase from 11.80% and employer rates increase to 17.70%. The City’s contributions to the PEPFF for the year ended December 31, 2018, were $419,242. The City’s contributions were equal to the required contributions as set by state statute. PENSION COSTS 1. GERF Pension Costs At December 31, 2018, the City reported a liability of $1,913,919 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 $16 million to the fund in 2018. 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 $62,724. The net pension liability was measured as of June 30, 2018, 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, 2017, through June 30, 2018, relative to the total employer contributions received from all of PERA’s participating employers. At June 30, 2018, the City’s proportion was .0345% which was an increase of .0007% from its proportion measured as of June 30, 2017. Post-retirement benefit increases were changed from 1.0% per year with a provision to increase to 2.5% upon attainment of 90% funding ratio to 50% of the Social Security Cost of Living Adjustment, not less than 1.0% and not more than 1.5%, beginning January 1, 2019. For the year ended December 31, 2018, the City recognized pension expense of $164,657 for its proportionate share of the GERF’s pension expense. In addition, the City recognized an additional $14,627 as pension expense (and grant revenue) for its proportionate share of the State of Minnesota’s contribution of $16 million to the GERF. At December 31, 2018, 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: 68 CITY OF ST. ANTHONY, MINNESOTA NOTES TO FINANCIAL STATEMENTS December 31, 2018 Deferred Outflows Deferred Inflows of Resources of Resources Differences between expected and actual economic experience $50,657 $56,387 Changes in actuarial assumptions 184,682 215,049 Difference between projected and actual investment earnings - 193,961 Changes in proportion 54,189 54,442 Contributions paid to PERA subsequent to the measurement date 86,839 - Total $376,367 $519,839 $86,839 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, 2019. 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 2019 $67,345 2020 (116,231) 2021 (141,479) 2022 (39,946) Thereafter - 2. PEPFF Pension Costs At December 31, 2018, the City reported a liability of $2,585,866 for its proportionate share of the PEPFF’s net pension liability. The net pension liability was measured as of June 30, 2018, 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, 2017, through June 30, 2018, relative to the total employer contributions received from all of PERA’s participating employers. At June 30, 2018, the City’s proportion was .2426% which was a decrease of .0224% from its proportion measured as of June 30, 2017. The City also recognized $21,834 for the year ended December 31, 2018, 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. Beginning January 1, 2019, the COLA will be fixed at 1%. Under funding measurements from 2017, the 2.5% COLA trigger was never expected to occur and was subsequently removed from law. For the year ended December 31, 2018, the City recognized pension expense of $171,860 for its proportionate share of the PEPFF’s pension expense. 69 CITY OF ST. ANTHONY, MINNESOTA NOTES TO FINANCIAL STATEMENTS December 31, 2018 At December 31, 2018, 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 $104,225 $607,881 Changes in actuarial assumptions 3,140,665 3,806,731 Difference between projected and actual investment earnings - 574,479 Changes in proportion 213,915 694,801 Contributions paid to PERA subsequent to the measurement date 210,707 - Total $3,669,512 $5,683,892 $210,707 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, 2019. 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 2019 ($181,516) 2020 (286,044) 2021 (471,963) 2022 (1,140,239) 2023 (145,325) Thereafter - ACTUARIAL ASSUMPTIONS The total pension liability in the June 30, 2018 actuarial valuation was determined using the following actuarial assumptions: GERF PEPFF Inflation 2.50% per year 2.50% per year Salary Growth 3.25% per year after 26 years of service 3.25% per year after 25 years of service Investment Rate of Return 7.50%7.50% The total pension liability for each of the defined benefit cost-sharing plans was determined by an actuarial valuation as of June 30, 2018, using the entry age normal actuarial cost method. Inflation is assumed to be 2.50% for the General Employees and Police and Fire Plans. Salary growth assumptions in the General Employees Plan decrease in annual increments from 11.25% after one year of service, to 3.25% after 26 years of service. In the Police and Fire Plan, salary growth assumptions decrease from 12.25% after one year of service to 3.25% after 25 years of service. 70 CITY OF ST. ANTHONY, MINNESOTA NOTES TO FINANCIAL STATEMENTS December 31, 2018 Mortality rates for all plans are based on RP-2014 mortality tables. The tables are adjusted slightly to fit PERA’s experience. Actuarial assumptions for the General Employees Plan are reviewed every four to six years. The most recent six-year experience study for the General Employees Plan was completed in 2015. The most recent four-year experience study for the Police and Fire Plan was completed in 2016. The following changes in actuarial assumptions occurred in 2018: General Employees Fund • The mortality projection scale was changed from MP-2015 to MP-2017. • The assumed benefit increase was changed from 1.0% per year through 2044 and 2.50% per year thereafter to 1.25% per year. Police and Fire Fund • The mortality projection scale was changed from MP-2016 to MP-2017. 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 36%5.10% International Stocks 17%5.30% Bonds (Fixed Income)20%0.75% Alternative Assets (Private Markets)25%5.90% Cash 2%0.00% Total 100% DISCOUNT RATE The discount rate used to measure the total pension liability in 2018 was 7.50%. 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. Based on these assumptions, the fiduciary net position of the General Employees Fund and the Police and Fire 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. 71 CITY OF ST. ANTHONY, MINNESOTA NOTES TO FINANCIAL STATEMENTS December 31, 2018 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 $3,110,363 $1,913,919 $926,288 City's proportionate share of the PEPFF net pension liability $5,544,259 $2,585,866 $139,398 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. 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 $3,500 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 72 CITY OF ST. ANTHONY, MINNESOTA NOTES TO FINANCIAL STATEMENTS December 31, 2018 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 $3,500 for each year that the member served as an active member of the Relief. The survivor benefits include those members who are on the regular pension roll or on the deferred pension roll. State Supplemental Benefits Minnesota Statute 424A.10 provides for the payment of a supplemental benefit equal to ten percent of a regular lump sum distribution up to a maximum of $1,000. The supplemental benefit is in lieu of a State income tax exclusion for lump sum distributions and will no longer be available if State tax law is modified to exclude lump sum distributions from State income tax. The Relief qualifies for these benefits. EMPLOYEES COVERED BY BENEFIT TERMS At December 31, 2018, 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) 7 Nonvested (less than 10 years) 17 Total 33 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, 2018, were $6,000. The City’s contributions met the required contribution of $6,000 as set by state statute. State aid contributions for the year ended December 31, 2018 were $52,083. NET PENSION LIABILITY The City’s net pension liability (asset) was measured as of December 31, 2018, and the total pension liability used to calculate the net pension liability (asset) was determined by an actuarial valuation as of December 31, 2016 rolled forward to December 31, 2018. 73 CITY OF ST. ANTHONY, MINNESOTA NOTES TO FINANCIAL STATEMENTS December 31, 2018 ACTUARIAL ASSUMPTIONS The total pension liability in the December 31, 2018 actuarial valuation was determined using the following actuarial assumptions, applied to all periods included in the measurement: Investment rate of return 5.75% 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 2014 employee generational mortality projected with mortality improvement scale MP-2016, from a base year of 2006. Healthy post-retirement – RP 2014 annuitant generational mortality projected with mortality improvement scale MP-2016 from a base year of 2006. Male rates adjusted by a factor of 0.96. Disabled – RP 2014 annuitant generational mortality table projected with mortality improvement scale MP-2016 from a base year of 2006. Male rates are adjusted by a factor of 0.96. 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. 74 CITY OF ST. ANTHONY, MINNESOTA NOTES TO FINANCIAL STATEMENTS December 31, 2018 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 5.39% 8.14% International equity 5.20% 7.95% Fixed income 1.98% 4.73% Real estate and alternatives 4.25% 7.00% Cash and equivalents 0.79% 3.54% Total (weighted avg.) 6.58% Reduced for assumed investment expense (0.95%) Net assumed investment return (rounded to 1/4%) 5.75% DISCOUNT RATES The discount rate used to measure the total pension liability was 5.75%. 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. 75 CITY OF ST. ANTHONY, MINNESOTA NOTES TO FINANCIAL STATEMENTS December 31, 2018 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, 2017 $746,810 $1,033,263 ($286,453) Changes for the year: Service cost 37,633 - 37,633 Interest 40,951 - 40,951 Differences between expected and actual experience - - - Change of assumptions - - - Changes of benefit terms 26,091 - 26,091 Contributions - employer - 6,000 (6,000) On behalf contributions - State of MN - 53,083 (53,083) Contributions - employee - - - Net investment income - (54,281) 54,281 Benefit payments, including refunds of employee contributions (144,500) (144,500) - Administrative expense - (11,547) 11,547 Other changes - - - Net changes (39,825) (151,245) 111,420 Balance at December 31, 2018 $706,985 $882,018 ($175,033) Increase (Decrease) PENSION LIABILITY (ASSET) SENSITIVITY The following presents the net pension liability (asset) of the City, calculated using the discount rate of 5.75%, as well as what the net pension liability would be if it were calculated using a discount rate that is 1-percentage-point lower (4.75%) or 1-percentage-point higher (6.75%) than the current rate: Current 1% Decrease Discount Rate 1% Increase (4.75%) (5.75%) (6.75%) Net pension liability (asset) ($151,914) ($175,033) ($196,829) 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. 76 CITY OF ST. ANTHONY, MINNESOTA NOTES TO FINANCIAL STATEMENTS December 31, 2018 PENSION EXPENSE AND DEFERRED OUTFLOWS OF RESOURCES AND DEFERRED INFLOWS OF RESOURCES RELATED TO PENSIONS For the year ended December 31, 2018, the City recognized pension expense of $78,569. At December 31, 2018, 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 experience $ - $28,925 Changes of assumptions 2,227 24,849 Net differences between projected and actual earnings on pension plan investments 76,589 - Total $78,816 $53,774 Amounts reported as deferred outflows of resources and deferred inflows of resources related to pension will be recognized in pension expense as follows: Year ended June 30: 2019 $19,580 2020 7,242 2021 7,771 2022 15,740 2023 (6,564) Thereafter (18,727) C. PENSION EXPENSE Pension expense recognized by the City for the fiscal year ended December 31, 2018 is as follows: GERF $179,284 PEPFF 171,860 Fire Relief 78,569 Total $429,713 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 77 CITY OF ST. ANTHONY, MINNESOTA NOTES TO FINANCIAL STATEMENTS December 31, 2018 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 2018 were: Required Employer Employee (Pension Expense) Employee Employer Rate $1,913 $1,913 5% 5% 5% Contribution Amount Percentage of Covered Payroll Note 9 POST-EMPLOYMENT BENEFITS OTHER THAN PENSIONS (OPEB) A. PLAN DESCRIPTION The city implemented GASB Statement No. 75, Accounting and Financial Reporting for Postemployment Benefits other than Pensions, for the year ended December 31, 2018. GASB Statement No. 75 established new accounting and financial reporting requirements for governments whose employees are provided OPEB. Net position has not been restated as a result of the change in accounting principle because its effects on the financial statements were not material. In addition to providing the pension benefits described in Note 7, the City provides post-employment health care benefits, as defined in paragraph B, through its group health insurance plan (the plan). The plan is a single-employer defined benefit OPEB plan 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. OPEB is funded on a pay-as-you go basis. No assets are accumulated in a trust that meets the criteria in paragraph 4 of GASB Statement No. 75. B. BENEFITS PROVIDED 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. Active employees, who retire from the City when over age 50 and with 20 years of service, may continue coverage with respect to both themselves and their eligible dependent(s) under the City’s health benefits program until age 65. The City provides health coverage for peace officers or firefighters disabled or killed in the line of duty in accordance with Minnesota Statute 299A.465. The amount of coverage provided is equal to the employer portion of health insurance premiums that would have otherwise been paid if the officer or firefighter was an active employee. During 2018, the City did not have any police officers or firefighters eligible for this benefit. 78 CITY OF ST. ANTHONY, MINNESOTA NOTES TO FINANCIAL STATEMENTS December 31, 2018 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. C. PARTICIPANTS As of the January 1, 2018 actuarial valuation, participants of the plan consisted of: Active employees 55 Inactive employees or beneficiaries currently receiving benefits 2 Total 57 D. TOTAL OPEB LIABILITY AND CHANGES IN TOTAL OPEB LIABILITY The City’s total OPEB liability of $803,931 was measured as of December 31, 2017, and was determined by an actuarial valuation as of January 1, 2018. Changes in the total OPEB liability during 2018 were: Balance - beginning of year $704,204 Changes for the year: Service cost 60,682 Interest 28,711 Changes of benefit terms - Differences between expected and actual experience - Changes in assumptions 21,006 Benefit payments (10,672) Net changes 99,727 Balance - end of year $803,931 Changes in assumptions reflect a change in the discount rate from 3.78% in 2017 to 3.44% in 2018. 79 CITY OF ST. ANTHONY, MINNESOTA NOTES TO FINANCIAL STATEMENTS December 31, 2018 E. ACTUARIAL ASSUMPTIONS AND OTHER INPUTS The total OPEB liability in the January 1, 2018 actuarial valuation was determined using the following actuarial assumptions and other inputs, applied to all periods included in the measurement, unless otherwise specified: Inflation 3.50% Salary increases 3.5% for Police and Fire after 25 years of service and after 26 years of service for all other employees Discount rate 3.44% Investment rate of return NA Healthcare cost trend rates 10.00% for 2018, decreasing each year to an ultimate rate of 5.00% for 2028 and beyond Retirees' share of benefit-related costs 100% Since the plan is funded on a pay-as-you-go basis, both the discount rate and the investment rate of return was based on the 20 year AA rated municipal bond rate as of December 31, 2017, obtained from the Bond Buyer 20-Bond G.O. index. Mortality rates are the rates used in the PERA plan of which the employee, retiree or beneficiary is a participant. Coordinated  Healthy Pre-Retirement RP-2014 Employee Mortality Table, adjusted for white collar and mortality improvements using projection scale MP-2015, from a base year of 2014. Rates are set forward one year for males and set back one year for females.  Healthy Post-Retirement RP-20 14 Healthy Annuitant Mortality Table, adjusted for white collar and mortality improvements using projection scale MP-2015, from a base year of 2014. Rates are set forward two years for males. Female rates are multiplied by a factor of 0.90.  Disabled RP-2014 Disabled Mortality Table, adjusted for mortality improvements using projection scale MP-2015, from a base year of 2014. Rates are set forward one year for males and set forward six years for females. Police & Fire  Healthy Pre-Retirement RP-2014 employee generational mortality table projected with mortality improvement scale MP- 2016, from a base year of 2006.  Healthy Post-Retirement RP-2014 annuitant generational mortality table projected with mortality improvement scale MP-2016 from a base year of 2006. Male rates are adjusted by a factor of 0.96. 80 CITY OF ST. ANTHONY, MINNESOTA NOTES TO FINANCIAL STATEMENTS December 31, 2018  Disabled RP-2014 annuitant generational mortality table projected with mortality improvement scale MP-2016 from a base year of 2006. Male rates are adjusted by a factor of 0.96. Based on past experience of the plan, 65% of future retirees are assumed to continue medical coverage until age 65. The retirement rates for employees in each PERA returned plans are as follows: Coordinated Plan The 'Rule of 90' retirement rates apply to employees hired prior to July 1, 1989 that have attained the Rule of 90 (age plus service totals 90). The 'No Rule of 90' Tier 1 retirement rates apply to employees hired prior to July 1, 1989 that have not attained the Rule of 90, and 'No Rule of 90' Tier 2 employees hired on or after July 1,1989. Police & Fire Rates as shown in the table below. Police & Fire Fund Age Rule of 90 Tier 1 Tier 2 All Employees 50 0.00% 0.00% 0.00% 10.00% 51 0.00% 0.00% 0.00% 7.00% 52 0.00% 0.00% 0.00% 7.00% 53 0.00% 0.00% 0.00% 10.00% 54 0.00% 0.00% 0.00% 10.00% 55 20.00% 5.00% 5.00% 25.00% 56 15.00% 5.00% 5.00% 22.50% 57 15.00% 5.00% 5.00% 22.50% 58 15.00% 6.00% 5.00% 22.50% 59 15.00% 7.00% 6.00% 20.00% 60 15.00% 8.00% 7.00% 22.50% 61 18.00% 10.00% 9.00% 25.00% 62 35.00% 20.00% 15.00% 30.00% 63 25.00% 20.00% 15.00% 30.00% 64 25.00% 20.00% 15.00% 30.00% 65 32.50% 32.50% 25.00% 50.00% 66 25.00% 25.00% 25.00% 50.00% 67 20.00% 20.00% 20.00% 50.00% 68 17.50% 17.50% 17.50% 50.00% 69 15.00% 15.00% 15.00% 50.00% 70 17.50% 17.50% 17.50% 100.00% 71 100.00% 100.00% 100.00% 100.00% Coordinated Plan Summary of Retirement Rates 81 CITY OF ST. ANTHONY, MINNESOTA NOTES TO FINANCIAL STATEMENTS December 31, 2018 F. SENSITIVITY OF THE TOTAL OPEB LIABILITY TO CHANGES IN THE DISCOUNT RATE The following presents the total OPEB liability of the City, as well as what the City’s total OPEB liability would be if it were calculated using a discount rate that is 1% lower (2.44%) or 1% higher (4.44%) than the current discount rate: 1% Decrease Discount Rate 1% Increase (2.44%)(3.44%)(4.44%) Total OPEB liability $867,461 $803,931 $743,143 G. SENSITIVITY OF THE TOTAL OPEB LIABILITY TO CHANGES IN THE HEALTHCARE COST TREND RATES The following presents the total OPEB liability of the City, as well as what the City’s total OPEB liability would be if it were calculated using healthcare cost trend rates that are 1% lower (9% decreasing to 4%) or 1% higher (11% decreasing to 6%) than the current healthcare cost trend rates: Healthcare Cost 1% Decrease Trend Rates 1% Increase (9% decreasing to 4%) (10% decreasing to 5%) (11% decreasing to 6%) Total OPEB liability $705,673 $803,931 $918,821 H. OPEB EXPENSE AND DEFERRED OUTFLOWS AND INFLOWS OF RESOURCES RELATED TO OPEB For the year ended December 31, 2018, the City recognized $91,408 of OPEB expense. At December 31, 2018, the City reported deferred outflows and inflows of resources related to OPEB from the following sources: Deferred Outflows Deferred Inflows of Resources of Resources Changes of assumptions $18,991 $ - Contributions subsequent to the measurement date 11,075 - Total $30,066 $0 $11,075 reported as deferred outflows of resources resulting from City contributions subsequent to the measurement date will be recognized as a reduction of the net OPEB liability in the year ended December 31, 2019. 82 CITY OF ST. ANTHONY, MINNESOTA NOTES TO FINANCIAL STATEMENTS December 31, 2018 Amounts reported as deferred outflows and inflows of resources related to OPEB will be recognized in OPEB expense as follows: Year Ended OPEB December 31, Expense 2019 $2,015 2020 2,015 2021 2,015 2022 2,015 2023 2,015 Thereafter 8,916 $18,991 Note 10 INTERFUND RECEIVABLES/PAYABLES, LOANS AND TRANSFERS Individual fund interfund receivable and payable balances at December 31, 2018 are as follows: Fund Receivable Payable Governmental activities: Major funds: General Fund $93,921 $ - Street Improvement Project Fund - 93,921 Total $93,921 $93,921 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, 2018 are as follows: Fund Receivable Payable Purpose Major funds: Public Utilities Infrastructure $993,046 $ - HRA TIF Improvements 1,369,416 2,328,742 Provide financing for pay off of Fannie Mae loan Nonmajor funds: Revolving Improvement - 33,720 Provide financing for Arbors Alley Project - Total $2,362,462 $2,362,462 83 CITY OF ST. ANTHONY, MINNESOTA NOTES TO FINANCIAL STATEMENTS December 31, 2018 Interfund transfers: Street Street Nonmajor Internal Water/Sewer/ General Improvement HRA TIF Improvement Governmental Service Liquor Water Plant Fund Debt Service Debt Service Project Fund Fund Fund Fund Total Governmental activities: General Fund $ - $ - $ - $ - $90,185 $86,300 $ - $ - $176,485 HRA TIF Improvements 7,870 - 587,237 - - - - - 595,107 Street Improvement Project Fund - 103,596 - - - - - - 103,596 Public Utilities Infrastructure - - - 198,400 - - - - 198,400 Nonmajor 100,000 168,000 - - 249,065 - - - 517,065 Internal Service Fund - - - - - - 52,738 49,967 102,705 Business-type activities: Liquor 250,000 - - - - - - - 250,000 Stormwater utility - 95,000 - 28,394 - - - - 123,394 Total transfers $357,870 $366,596 $587,237 $226,794 $339,250 $86,300 $52,738 $49,967 $2,066,752 Transfer out Major Funds Transfer In Business-type Activities Major Funds Governmental Activities There was a transfer made in 2018 to close out the 2017 Street Improvement Project Fund. All of the other 2018 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, 2018 as follows: Fund Amount Nonmajor funds: Internal Service Fund $7,929,852 Revolving Improvement Fund 83,177 The Internal Service Fund includes the state retirement plans and OPEB and the retirement of pension and OPEB deficits are dependent upon variables, including contribution rates, investment earnings, and actuarial assumptions. The Revolving Improvement Fund deficit will be eliminated with future MSA Construction aid. 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. 84 CITY OF ST. ANTHONY, MINNESOTA NOTES TO FINANCIAL STATEMENTS December 31, 2018 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. The City did not have significant settlements in excess of insurance coverage in 2018 and 2016. In 2017, significant settlements were in excess of insurance coverage by $670,000. B. LITIGATION 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 judgement of the City management, remotely recoverable by plaintiffs. C. FEDERAL AND STATE FUNDS The City receives financial assistance from federal and state governmental agencies in the form of grants. The disbursement of funds received under these programs generally requires compliance with the terms and conditions specified in the grant agreements and are subject to audit by the grantor agencies. Any disallowed claims resulting from such audits could become a liability of the applicable fund. However, in the opinion of management, any such disallowed claims will not have a material effect on any of the financial statements included herein or on the overall financial position of the City at December 31, 2018. D. TAX INCREMENT DISTRICTS The City’s tax increment districts are subject to review by the State of Minnesota Office of the State Auditor (OSA). Any disallowed claims or misuse of tax increments could become a liability of the applicable fund. Management has indicated that they are not aware of any instances of noncompliance which would have a material effect on the financial statements. E. PAY-AS-YOU-GO TAX INCREMENT The City has 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 85 CITY OF ST. ANTHONY, MINNESOTA NOTES TO FINANCIAL STATEMENTS December 31, 2018 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 $793,199. At December 31, 2018, the principal amount outstanding on the note was $3,465,334. 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 $53,400. At December 31, 2018, 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 $277,312. At December 31, 2018, the principal amount outstanding on the note was $651,421. F. ARBITRAGE The City issued greater than $5 million of bonds in the years 2006, 2007 and 2011 and, therefore, is required to rebate excess investment income relating to these issues to the federal government. The City calculates arbitrage rebate every five years as permitted by arbitrage regulations. The extent of the City’s liability for arbitrage rebates for bond issues not currently requiring five year rebate calculations is not determinable at this time. However, in the opinion of management, any such liability would be immaterial. Note 13 DEFERRED AD VALOREM TAX LEVIES - BONDED DEBT General obligation bond issues sold by the City are financed by ad valorem tax levies and improvement bond issues sold by the City are partially financed by ad valorem tax levies in addition to special assessments levied against the benefiting properties. When a bond issue to be financed partially or completely by ad valorem tax levies is sold, specific annual amounts of such tax levies are stated in the bond resolution and the County Auditor is notified and instructed to levy these taxes over the appropriate years. The future tax levies are subject to cancellation when and if the City has provided alternative sources of financing. The City Council is required to levy any additional taxes found necessary for full payment of principal and interest. These future scheduled tax levies are not shown as assets in the accompanying financial statements at December 31, 2018. 86 CITY OF ST. ANTHONY, MINNESOTA NOTES TO FINANCIAL STATEMENTS December 31, 2018 Note 14 FUND BALANCE A. CLASSIFICATIONS At December 31, 2018, 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 $122,324 $ - $ - $ - $94,695 $ - $2,992 $220,011 Inventory 3,980 - - - - - - 3,980 Total nonspendable 126,30400094,695 02,992223,991 Restricted for: Tax increment - - - - 1,871,386 - - 1,871,386 Public safety - - - - - - 31,141 31,141 Debt service - 4,476,633 7,537 - - - 1,080,186 5,564,356 Total restricted 0 4,476,633 7,537 0 1,871,386 0 1,111,327 7,466,883 Committed to: Community center operations/maintenance - - - - - - 23,443 23,443 Recycling - - - - - - 18,592 18,592 Redevelopment activities - - - - - - 82,179 82,179 Total committed 00000 0124,214124,214 Assigned to: Community center operations/maintenance - - - - - - 15,883 15,883 Recycling - - - - - - 385 385 Street improvements/rehabilitiation - - - 379,891 - - - 379,891 Building improvements - - - - - - 348,150 348,150 Public safety - - - - - - 12,427 12,427 Public utilities infrastructure - - - - - 3,942,395 - 3,942,395 Parks and recreation - - - - - - 121,660 121,660 Other capital improvements - - - - - - 637,312 637,312 Total assigned 0 0 0 379,891 0 3,942,395 1,135,817 5,458,103 Unassigned 2,381,460 - - - (1,390,148) - (102,903) 888,409 Total $2,507,764 $4,476,633 $7,537 $379,891 $575,933 $3,942,395 $2,271,447 $14,161,600 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, financial services to other cities, and fire relief state aid passed through to the St. Anthony Fire Relief Association). At December 31, 2018, the unassigned fund balance of the General Fund was 38% of the subsequent year’s budgeted expenditures. 87 CITY OF ST. ANTHONY, MINNESOTA NOTES TO FINANCIAL STATEMENTS December 31, 2018 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, 2018, 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, 2018 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: 2018 Annual Lease Initial Lease Adjustment Expiration Automatic Lessee Amount Factor Date Renewals Sprint Spectrum $28,903 4%2/27/19 2-5 year terms Verizon Wireless 27,350 3%8/1/22 3-5 year terms 88 CITY OF ST. ANTHONY, MINNESOTA NOTES TO FINANCIAL STATEMENTS December 31, 2018 Future minimum lease payments are as follows: Sprint Verizon Spectrum Wireless 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 $372,024 $687,223 89 CITY OF ST. ANTHONY, MINNESOTA NOTES TO FINANCIAL STATEMENTS December 31, 2018 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 2018 and 2017 is computed as follows: December 31, December 31, 2018 2017 Market value: Ramsey County $332,722,100 $316,089,500 Hennepin County 584,189,715 551,479,705 Total market value 916,911,815 867,569,205 Debt limit percentage 3.00%3.00% Debt limit 27,507,354 26,027,076 Amount of debt applicable to debt limit: Total bonded debt 31,730,000 32,145,000 Less nonapplicable debt: Revenue bonds (water, sewer)(845,000)(975,000) Tax abatement bonds (1,460,000) (1,640,000) Improvement bonds (19,165,000) (18,400,000) Tax increment bonds (6,660,000) (7,065,000) Cash and investments in applicable debt service funds (795,439)(820,608) Total amount of debt applicable to debt limit 2,804,561 3,244,392 Legal debt margin $24,702,793 $22,782,684 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. 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. 87 Leases. The provisions of this Statement are effective for reporting periods beginning after December 15, 2019. Statement No. 88 Certain Disclosures Related to Debt, including Direct Borrowings and Direct Placements. The provisions of this Statement are effective for reporting periods beginning after June 15, 2018. Statement No. 89 Accounting for Interest Cost Incurred before the End of a Construction Periods. The provisions of this Statement are effective for reporting periods beginning after December 15, 2019. 90 CITY OF ST. ANTHONY, MINNESOTA NOTES TO FINANCIAL STATEMENTS December 31, 2018 Statement No. 90 Majority Equity Interests. The provisions of this Statement are effective for reporting periods beginning after December 15, 2018. The effect these standards may have on future financial statements is not determinable at this time, but it is expected that Statement No. 87 may have a material impact. Note 19 SPECIAL ITEM In 2018, the City aggregated within the internal service fund all fund-level other post employment benefit liabilities (OPEB). Prior to 2018, allocable portions of the OPEB liability were reported separately within the Liquor and Water/Sewer/Water Plant enterprise funds. Additionally, under the current financial statements, no portion of the OPEB liability was reported in the government fund financial statements. A special item of $619,626 is reported within the statements of revenues, expenses and changes in net position- proprietary funds - for the year ended December 31, 2018. This item recognizes, using the economic resources measurement focus and accrual basis of accounting, the assumption by the internal service funds of that portion of the OPEB liability allocable to personnel expenditures reported within the governmental funds prior to 2018. 91 - This page intentionally left blank - 92 REQUIRED SUPPLEMENTARY INFORMATION 93 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, 2018 With Comparative Totals For The Year Ended December 31, 2017 2018 2017 Actual Variance with Actual Original Final Amounts Final Budget Amounts Revenues: General property taxes $4,171,053 $4,171,053 $4,234,627 $63,574 $3,786,628 Special assessments - - 2,171 2,171 5,074 Licenses and permits 265,277 265,277 295,955 30,678 358,230 Intergovernmental: Federal: Police grants 41,600 41,600 42,094 494 41,750 State: Local governement aid 552,238 552,238 552,240 2 528,225 Police aid 171,630 171,630 206,192 34,562 207,448 Fire aid 45,672 45,672 53,083 7,411 53,206 Municipal state aid - street maintenance 88,708 88,708 97,275 8,567 88,708 PERA aid 7,197 7,197 7,197 - 7,197 County: Street maintenance 31,905 31,905 31,756 (149) 31,312 Other 8,800 8,800 19,696 10,896 37,419 Local: School District DARE 14,500 14,500 16,287 1,787 14,500 Other 250 250 68 (182)78 Total intergovernmental 962,500 962,500 1,025,888 63,388 1,009,843 Charges for services: Police contracts 692,768 692,768 692,768 - 1,345,180 Cable franchise fees 119,350 119,350 101,612 (17,738) 115,079 Antenna rental - water tower 56,252 56,252 56,256 4 59,408 Other 216,667 216,667 214,617 (2,050) 194,668 Total charges for services 1,085,037 1,085,037 1,065,253 (19,784) 1,714,335 Fines and forfeits 75,750 75,750 72,574 (3,176) 71,657 Contributions and donations 1,500 1,500 3,873 2,373 101,500 Other revenue: Investment income 31,500 31,500 23,866 (7,634) 17,383 Refunds and reimbursments 15,000 15,000 19,596 4,596 5,623 Miscellaneous - other 36,500 36,500 35,559 (941) 18,705 Total other revenue 83,000 83,000 79,021 (3,979) 41,711 Total revenues 6,644,117 6,644,117 6,779,362 135,245 7,088,978 Expenditures: General government: Mayor and council: Current: Personal services 40,744 40,744 40,721 23 39,085 Other services and charges 43,129 43,129 52,816 (9,687) 43,608 Total mayor and council 83,873 83,873 93,537 (9,664) 82,693 Budgeted Amounts 94 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, 2018 With Comparative Totals For The Year Ended December 31, 2017 2018 2017 Actual Variance with Actual Original Final Amounts Final Budget Amounts Expenditures: (continued) General government: (continued) Public relations/cable: Current: Personal services $9,936 $9,936 $10,081 ($145) $8,941 Supplies 500 500 - 500 86 Other services and charges 37,446 37,446 37,490 (44) 36,363 Capital outlay 1,500 1,500 - 1,500 - Total public relations/cable 49,382 49,382 47,571 1,811 45,390 General management: Current: Personal services 99,565 99,565 98,543 1,022 91,876 Supplies 500 500 117 383 - Other services and charges 32,177 32,177 29,281 2,896 28,997 Total general management 132,242 132,242 127,941 4,301 120,873 Elections: Current: Personal services 19,713 19,713 19,713 - 19,712 Supplies 3,227 525 365 160 352 Other services and charges 400 3,102 816 2,286 3,676 Total elections 23,340 23,340 20,894 2,446 23,740 Finance: Current: Personal services 240,409 240,409 251,459 (11,050) 225,003 Supplies 8,600 8,600 7,849 751 7,716 Other services and charges 116,616 116,616 111,996 4,620 114,672 Total finance 365,625 365,625 371,304 (5,679) 347,391 Assessing: Current: Personal services 3,914 3,914 4,169 (255) 3,782 Supplies 163 163 116 47 135 Other services and charges 61,503 61,503 61,000 503 58,000 Total assessing 65,580 65,580 65,285 295 61,917 Legal: Current: Contracted services 111,110 111,110 75,369 35,741 86,739 Planning and zoning: Current: Personal services 13,454 13,454 12,552 902 11,197 Supplies 130 130 121 9 83 Other services and charges 40,088 40,088 60,870 (20,782) 98,527 Total planning and zoning 53,672 53,672 73,543 (19,871) 109,807 Budgeted Amounts 95 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, 2018 With Comparative Totals For The Year Ended December 31, 2017 2018 2017 Actual Variance with Actual Original Final Amounts Final Budget Amounts Expenditures: (continued) General government: (continued) General government buildings: Current: Other services and charges $116,841 $116,841 $111,441 $5,400 $114,522 Total general government buildings 116,841 116,841 111,441 5,400 114,522 Total general government 1,001,665 1,001,665 986,885 14,780 993,072 Public safety: Civil defense: Current: Personal services 76,307 76,307 73,785 2,522 70,131 Supplies 488 488 349 139 239 Other services and charges 3,627 3,627 2,259 1,368 1,525 Total civil defense 80,422 80,422 76,393 4,029 71,895 Police protection: Current: Personal services 2,784,330 2,784,330 2,827,257 (42,927) 2,952,914 Supplies 98,199 98,199 81,886 16,313 92,666 Other services and charges 213,557 213,557 393,844 (180,287) 976,002 Total police protection 3,096,086 3,096,086 3,302,987 (206,901) 4,021,582 Fire protection: Current: Personal services 994,500 994,500 1,006,035 (11,535) 979,210 Supplies 36,012 36,012 34,760 1,252 28,401 Other services and charges 69,509 69,509 64,494 5,015 83,505 Total fire protection 1,100,021 1,100,021 1,105,289 (5,268) 1,091,116 Protective inspections: Current: Personal services 13,805 13,805 13,747 58 13,087 Supplies 100 100 433 (333)92 Other services and charges 80,525 80,525 109,028 (28,503) 131,229 Total protective inspections 94,430 94,430 123,208 (28,778) 144,408 DARE program: Current: Personal services 13,105 13,105 9,928 3,177 9,515 Supplies 2,865 2,865 1,981 884 2,719 Total DARE program 15,970 15,970 11,909 4,061 12,234 Budgeted Amounts 96 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, 2018 With Comparative Totals For The Year Ended December 31, 2017 2018 2017 Actual Variance with Actual Original Final Amounts Final Budget Amounts Expenditures: (continued) Public safety: (continued) Animal control: Current: Contracted services $500 $500 $ - $500 $ - Total animal control 500 500 0 500 0 Total public safety 4,387,429 4,387,429 4,619,786 (232,357) 5,341,235 Public works: Street maintenance: Current: Personal services 414,456 414,456 404,553 9,903 376,686 Supplies 17,786 17,786 20,439 (2,653) 17,698 Other services and charges 137,524 137,524 137,890 (366) 117,210 Total street maintenance 569,766 569,766 562,882 6,884 511,594 Equipment maintenance: Current: Personal services 87,889 87,889 80,649 7,240 78,403 Supplies 224,399 224,399 171,346 53,053 140,203 Other services and charges 45,785 45,785 64,395 (18,610) 45,262 Total equipment maintenance 358,073 358,073 316,390 41,683 263,868 Tree and weed care: Current: Personal services 41,926 41,926 41,950 (24) 40,405 Other services and charges 5,065 5,065 1,426 3,639 3,765 Total tree and weed care 46,991 46,991 43,376 3,615 44,170 Total public works 974,830 974,830 922,648 52,182 819,632 Parks and recreation: Park maintenance: Current: Personal services 152,608 152,608 153,002 (394) 143,675 Supplies 11,444 11,444 14,357 (2,913) 19,832 Other services and charges 40,417 40,417 42,981 (2,564) 40,684 Total park maintenance 204,469 204,469 210,340 (5,871) 204,191 Recreation: Current: Community services 52,176 52,176 52,176 - 52,176 Total parks and recreation 256,645 256,645 262,516 (5,871) 256,367 Budgeted Amounts 97 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, 2018 With Comparative Totals For The Year Ended December 31, 2017 2018 2017 Actual Variance with Actual Original Final Amounts Final Budget Amounts Expenditures: (continued) Nondepartmental: Personal services $31,313 $31,313 $31,805 ($492) $28,728 Supplies 531 531 15,073 (14,542) 9,800 Insurance deductible costs 6,242 6,242 14,384 (8,142) 6,567 Total nondepartmental 38,086 38,086 61,262 (23,176) 45,095 Total expenditures 6,658,655 6,658,655 6,853,097 (194,442) 7,455,401 Revenues over (under) expenditures (14,538) (14,538) (73,735) (59,197) (366,423) Other financing sources (uses): Transfers in 200,000 200,000 357,870 157,870 619,060 Transfers out (176,485) (176,485) (176,485) - (172,190) Total other financing sources (uses) 23,515 23,515 181,385 157,870 446,870 Net change in fund balance $8,977 $8,977 107,650 $98,673 80,447 Fund balance - January 1 2,400,114 2,319,667 Fund balance - December 31 $2,507,764 $2,400,114 Budgeted Amounts 98 CITY OF ST. ANTHONY, MINNESOTA REQUIRED SUPPLEMENTARY INFORMATION Statement 11 SCHEDULE OF CHANGES IN THE CITY'S TOTAL OPEB LIABILITY AND RELATED RATIOS For The Year Ended December 31, 2018 2018 Total OPEB liability: Service cost $60,682 Interest 28,711 Changes of benefit terms - Differences between expected and actual experience - Changes in assumptions 21,006 Benefit payments (10,672) Net change in total OPEB liability 99,727 Total OPEB liability - beginning 704,204 Total OPEB liability - ending $803,931 Covered-employee payroll $4,627,624 Total OPEB liability as a percentage of covered-employee payroll 17.4% The schedule is provided prospectively beginning with the City's fiscal year ended December 31, 2018 and is intended to show a ten year trend. Additional years will be added as they become available. 99 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, 2018 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 Measurement Fiscal Year (Percentage) of of the Net Liability Pension Liability of its covered of the Total Date Ending the Net Pension Pension Associated with Associated with Covered Payroll Pension June 30 December 31 Liability Liability (a) St. Anthony (b) St. Anthony (a+b) Payroll (c) ((a+b)/c) Liability 2015 2015 0.0343% $1,777,604 $ - $1,777,604 $2,012,851 88.3% 78.2% 2016 2016 0.0353% 2,866,185 37,474 2,903,659 2,192,080 132.5% 68.9% 2017 2017 0.0338% 2,157,770 27,098 2,184,868 2,174,769 100.5% 75.9% 2018 2018 0.0345% 1,913,919 62,724 1,976,643 2,318,754 85.2% 79.5% * 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. 100 CITY OF ST. ANTHONY, MINNESOTA REQUIRED SUPPLEMENTARY INFORMATION Statement 13 SCHEDULE OF PENSION CONTRIBUTIONS* - GENERAL EMPLOYEES RETIREMENT FUND For The Year Ended December 31, 2018 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% December 31, 2017 167,798 167,798 - 2,237,307 7.5% December 31, 2018 175,748 175,748 - 2,343,317 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. 101 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, 2018 Proportionate Share Proportionate of the Net Pension Plan Fiduciary Proportion Share (Amount) Liability as a Net Position as Measurement Fiscal Year (Percentage) of of the Net Percentage of its a Percentage Date Ending the Net Pension Pension Covered Covered of the Total June 30 December 31 Liability Liability (a) Payroll (b) Payroll (a/b) Pension Liability 2015 2015 0.2770% $3,147,368 $2,535,887 124.1%86.6% 2016 2016 0.2920% 11,718,468 2,816,408 416.1%63.9% 2017 2017 0.2650% 3,577,815 2,722,821 131.4%85.4% 2018 2018 0.2426% 2,585,866 2,553,675 101.3%88.8% * 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. 102 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, 2018 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% December 31, 2017 424,887 424,887 - 2,622,760 16.2% December 31, 2018 419,242 419,242 - 2,587,918 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. 103 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, 2018 Fiscal year ending December 31, 2018 December 31, 2017 December 31, 2016 December 31, 2015 Measurement date December 31, 2018 December 31, 2017 December 31, 2016 December 31, 2015 Total pension liability: Service cost $37,633 $37,542 $47,233 $44,095 Interest 40,951 44,308 31,829 30,759 Changes of benefit terms 26,091 - - - Differences between expected and actual experience - (35,041) - - Changes of assumptions - 2,699 (36,075) - Benefit payments, including refunds of employee contributions (144,500)(7,260)(80,200)(25,472) Net change in total pension liability (39,825)42,248 (37,213)49,382 Total pension liability - beginning 746,810 704,562 741,775 692,393 Total pension liability - ending (a)$706,985 $746,810 $704,562 $741,775 Plan fiduciary net position: Contributions - employer $6,000 $6,000 $6,000 $6,000 Contributions - State of Minnesota 53,083 51,206 51,174 48,725 Contributions - employee - - - - Net investment income (54,281)93,511 39,971 (23,129) Benefit payments, including refunds of employee contributions (144,500)(7,260)(80,200)(25,472) Administrative expense (11,547)(11,829)(8,653)(10,561) Other - - - - Net change in plan fiduciary net position (151,245)131,628 8,292 (4,437) Plan fiduciary net position - beginning 1,033,263 901,635 893,343 897,780 Plan fiduciary net position - ending (b)$882,018 $1,033,263 $901,635 $893,343 Net pension liability (asset) - ending (a) - (b)($175,033)($286,453)($197,073)($151,568) Plan fiduciary net position as a percentage of the total pension liability 124.76%138.36%127.97%120.43% Covered-employee payroll**NA NA NA NA Net pension liability as a percentage of covered employee payroll**NA NA NA NA Pension benefit per year of service $3,500 $3,300 $3,300 $3,300 Number of plan participants 33 35 32 32 *GASB 68 was implemented in 2015. Information prior to 2015 is not available. **The Relief Association is comprised of volunteers, therefore there are no payroll expenditures. 104 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, 2018 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 December 31, 2017 - 56,546 (56,546) - NA December 31, 2018 - 58,083 (58,083) - 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.) 105 - This page intentionally left blank - 106 CITY OF ST. ANTHONY, MINNESOTA REQUIRED SUPPLEMENTARY INFORMATION NOTES TO RSI December 31, 2018 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 OPEB INFORMATION No assets are accumulated in a trust that meets the criteria in paragraph 4 of GASB Statement No. 75 to pay related benefits. There are no factors that affect trends in the amounts reported. Note C PENSION INFORMATION PERA – General Employees Retirement Fund 2018 Changes Changes in Actuarial Assumptions: - The mortality projection scale was changed from MP-2015 to MP-2017. - The assumed benefit increase was changed from 1.0% per year through 2044 and 2.50% per year thereafter to 1.25% per year. 2017 Changes Changes in Actuarial Assumptions: - The Combined Service Annuity (CSA) loads were changed from 0.8% for active members and 60% for vested and non-vested deferred members. The revised CSA loads are now 0.0% for active member liability, 15.0% for vested deferred member liability and 3.0% for non-vested deferred member liability. - The assumed post-retirement benefit increase rate was changed from 1.0% per year for all years to 1.0% per year through 2044 and 2.5% per year thereafter. 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 2018 Changes Changes in Actuarial Assumptions: - The mortality projection scale was changed from MP-2016 to MP-2017. 107 CITY OF ST. ANTHONY, MINNESOTA REQUIRED SUPPLEMENTARY INFORMATION NOTES TO RSI December 31, 2018 2017 Changes Changes in Actuarial Assumptions: - The single discount rate was changed from 5.6% to 7.5%. - Assumed salary increases were changed as recommended in the June 30, 2016 experience study. The net effect is proposed rates that average 0.34% lower than the previous rates. - Assumed rates of retirement were changed, resulting in fewer retirements. - The Combined Service Annuity (CSA) load was 30% for vested and non-vested deferred members. The CSA has been changed to 33% for vested members and 2% for non-vested members. - The base mortality table for healthy annuitants was changed from the RP-2000 fully generational table to the RP-2014 fully generational table (with a base year of 2006), with male rates adjusted by a factor of 0.96. The mortality improvement scale was changed from Scale AA to Scale MP-2016. The base mortality table for disabled annuitants was changed from the RP-2000 disabled mortality table to the mortality tables assumed for healthy retirees. - Assumed termination rates were decreased to 3.0% for the first three years of service. Rates beyond the select period of three years were adjusted, resulting in more expected terminations overall. - Assumed percentage of married female members was decreased from 65% to 60%. - Assumed age difference was changed from separate assumptions for male members (wives assumed to be three years younger) and female members (husbands assumed to be four years older) to the assumption that males are two years older than females. - The assumed percentage of female members electing Joint and Survivor annuities was increased. - The assumed post-retirement benefit increase rate was changed from 1.00% for all years to 1.00% per year through 2064 and 2.50% thereafter. 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 2017 Changes Changes in Actuarial Assumptions: - The assumed investment return was changed from 6.00% to 5.75%. The single discount rate was changed from 6.00% to 5.75%. 108 CITY OF ST. ANTHONY, MINNESOTA REQUIRED SUPPLEMENTARY INFORMATION NOTES TO RSI December 31, 2018 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%. 109 - This page intentionally left blank - 110 COMBINING AND INDIVIDUAL NONMAJOR FUND FINANCIAL STATEMENTS AND SCHEDULES 111 - This page intentionally left blank - 112 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). 113 CITY OF ST. ANTHONY, MINNESOTA COMBINING BALANCE SHEET Statement 18 NONMAJOR GOVERNMENTAL FUNDS December 31, 2018 With Comparative Totals For December 31, 2017 Special Debt Capital Revenue Service Project 2018 2017 Assets Cash and investments $142,369 $1,074,590 $1,205,193 $2,422,152 $3,285,699 Accrued interest - - - - 2,180 Due from other governmental units - - 171,470 171,470 141,169 Accounts receivable - net 733 - - 733 4,593 Loans receivable 32,674 - - 32,674 41,194 Prepaid items 2,992 - - 2,992 15,339 Property taxes receivable: Delinquent 1,173 4,260 1,930 7,363 4,360 Due from county 1,580 5,596 2,992 10,168 4,343 Special assessments receivable - - 13,373 13,373 15,428 Total assets $181,521 $1,084,446 $1,394,958 $2,660,925 $3,514,305 Liabilities, Deferred Inflows of Resources, and Fund Balance Liabilities: Accounts payable $10,653 $ - $173,571 $184,224 $114,168 Contracts payable - - 148,419 148,419 135,669 Interfund loan payable - - 33,720 33,720 39,340 Due to other governmental units 30 - - 30 2,551 Salaries payable 2,349 - - 2,349 1,886 Total liabilities 13,032 0 355,710 368,742 293,614 Deferred inflows of resources: Unavailable revenue 1,173 4,260 15,303 20,736 19,788 Total deferred inflows of resources 1,173 4,260 15,303 20,736 19,788 Fund balance (deficit): Nonspendable 2,992 - - 2,992 15,339 Restricted 31,141 1,080,186 - 1,111,327 1,071,040 Committed 124,214 - - 124,214 125,069 Assigned 28,695 - 1,107,122 1,135,817 2,010,345 Unassigned (19,726) - (83,177) (102,903) (20,890) Total fund balance (deficit)167,316 1,080,186 1,023,945 2,271,447 3,200,903 Total liabilities, deferred inflows of resources, and fund balance $181,521 $1,084,446 $1,394,958 $2,660,925 $3,514,305 Totals Nonmajor Governmental Funds 114 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, 2018 With Comparative Totals For The Year Ended December 31, 2017 Special Debt Capital Revenue Service Project 2018 2017 Revenues: General property taxes $162,543 $572,210 $305,423 $1,040,176 $1,039,421 Intergovernmental 16,150 - 25,816 41,966 28,922 Special assessments - - 2,971 2,971 10,079 Charges for services 134,299 - - 134,299 133,032 Fines and forfeits 12,964 - - 12,964 4,400 Investment income 1,614 10,218 22,452 34,284 25,555 Contributions and donations - - 600 600 840 Refunds and reimbursements 1,131 - 136,114 137,245 172,025 Total revenues 328,701 582,428 493,376 1,404,505 1,414,274 Expenditures: Current: General government 21,873 - 8,485 30,358 104,826 Public safety 8,405 - 233,167 241,572 5,286 Public works - - 255,659 255,659 170,934 Parks and recreation 140,284 - 28,291 168,575 150,381 Housing and redevelopment 148,966 - - 148,966 131,261 Capital outlay: General government - - 102,507 102,507 - Public safety - - 603,056 603,056 111,041 Public works - - 35,906 35,906 241,285 Parks and recreation - - 10,705 10,705 - Debt service: Principal - 505,000 - 505,000 1,905,000 Interest - 111,808 5,299 117,107 115,979 Paying agent fees - 1,252 - 1,252 868 Professional service - 237 - 237 1,604 Issuance costs - - - - 23,382 Total expenditures 319,528 618,297 1,283,075 2,220,900 2,961,847 Revenues over (under) expenditures 9,173 (35,869) (789,699) (816,395) (1,547,573) Other financing sources: Bonds issued - - - - 520,000 Refundings bonds issued - - - - 835,000 Premium on bonds issued - - - - 82,938 Sale of capital assets - - 64,754 64,754 28,244 Transfers in 90,185 68,880 180,185 339,250 953,926 Transfers out (90,185) - (426,880) (517,065) (630,890) Total other financing sources 0 68,880 (181,941) (113,061) 1,789,218 Net change in fund balance 9,173 33,011 (971,640) (929,456) 241,645 Fund balance - January 1 158,143 1,047,175 1,995,585 3,200,903 2,959,258 Fund balance - December 31 $167,316 $1,080,186 $1,023,945 $2,271,447 $3,200,903 Totals Nonmajor Governmental Funds 115 - This page intentionally left blank - 116 NONMAJOR GOVERNMENTAL FUNDS 117 - This page intentionally left blank - 118 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. 119 CITY OF ST. ANTHONY, MINNESOTA SUBCOMBINING BALANCE SHEET NONMAJOR SPECIAL REVENUE FUNDS December 31, 2018 With Comparative Totals For December 31, 2017 Community Center Fund Police Forfeiture Fund Assets Cash and investments $45,031 $36,824 Accounts receivable - net - - Loans receivable - - Prepaid items 1,653 - Property taxes receivable: Delinquent - - Due from county - - Due from other governmental units - - Total assets $46,684 $36,824 Liabilities, Deferred Inflows of Resources, and Fund Balance Liabilities: Accounts payable $5,390 $ - Due to other governmental units 30 - Salaries payable 285 - Total liabilities 5,705 0 Deferred inflows of resources: Unavailable revenue - - Total deferred inflows of resources 0 0 Fund balance (deficit): Nonspendable 1,653 - Restricted - 27,550 Committed 23,443 - Assigned 15,883 9,274 Unassigned - - Total fund balance (deficit)40,979 36,824 Total liabilities, deferred inflows of resources, and fund balance $46,684 $36,824 120 Statement 20 Recycling Fund HRA Fund Fire Education / Training Fund 2018 2017 $19,894 $33,876 $6,744 $142,369 $126,092 - 733 - 733 4,593 - 32,674 - 32,674 41,194 151 1,188 - 2,992 4,634 - 1,173 - 1,173 734 - 1,580 - 1,580 709 - - - - 69 $20,045 $71,224 $6,744 $181,521 $178,025 $917 $4,346 $ - $10,653 $15,795 - - - 30 1,467 - 2,064 - 2,349 1,886 917 6,410 0 13,032 19,148 - 1,173 - 1,173 734 0 1,173 0 1,173 734 151 1,188 - 2,992 4,634 - - 3,591 31,141 23,865 18,592 82,179 - 124,214 125,069 385 - 3,153 28,695 25,465 - (19,726) - (19,726)(20,890) 19,128 63,641 6,744 167,316 158,143 $20,045 $71,224 $6,744 $181,521 $178,025 Nonmajor Special Revenue Funds Totals 121 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, 2018 With Comparative Totals For The Year Ended December 31, 2017 Community Center Fund Police Forfeiture Fund Revenues: General property taxes $ - $ - Intergovernmental: Local - other - - Charges for services: Administrative fees - - Rental receipts 127,300 - Fines and forfeits - 12,964 Investment income 787 491 Refunds and reimbursements - - Total revenues 128,087 13,455 Expenditures: Current: General government - - Public safety - 7,170 Parks and recreation 140,284 - Housing and redevelopment - - Capital outlay: Public safety - - Total expenditures 140,284 7,170 Revenues over (under) expenditures (12,197)6,285 Other financing sources (uses): Transfers in 90,185 - Transfers out (90,185) - Total other financing sources (uses)0 0 Net change in fund balance (12,197)6,285 Fund balance (deficit) - January 1 53,176 30,539 Fund balance (deficit) - December 31 $40,979 $36,824 122 Statement 21 Recycling Fund HRA Fund Fire Education / Training Fund 2018 2017 $ - $162,543 $ - $162,543 $156,098 16,150 - - 16,150 18,989 4,282 - 2,717 6,999 5,532 - - - 127,300 127,500 - - - 12,964 4,400 244 - 92 1,614 1,134 - 1,131 - 1,131 31,678 20,676 163,674 2,809 328,701 345,331 21,873 - - 21,873 20,729 - - 1,235 8,405 5,286 - - - 140,284 134,623 - 148,966 - 148,966 131,261 - - - - 2,817 21,873 148,966 1,235 319,528 294,716 (1,197)14,708 1,574 9,173 50,615 - - - 90,185 85,890 - - - (90,185)(85,890) 00000 (1,197)14,708 1,574 9,173 50,615 20,325 48,933 5,170 158,143 107,528 $19,128 $63,641 $6,744 $167,316 $158,143 Nonmajor Special Revenue Funds Totals 123 - This page intentionally left blank - 124 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. Equipment Certificates Fund (402) was established to account for the debt service related to the 2018 purchase of a fire engine. HSIP Tax Abatement Fund (536) was established to account for debt service for sidewalks and signal light improvements. 125 CITY OF ST. ANTHONY, MINNESOTA SUBCOMBINING BALANCE SHEET Statement 22 NONMAJOR DEBT SERVICE FUNDS December 31, 2018 With Comparative Totals For December 31, 2017 Public Facilities Revenue Bonds Tax Abatement Fund Equipment Certificates Fund HSIP Tax Abatement 2018 2017 Assets Cash and investments $623,194 $256,864 $61,715 $132,817 $1,074,590 $1,045,736 Property taxes receivable: Delinquent 2,699 968 - 593 4,260 2,671 Due from county 3,373 1,204 - 1,019 5,596 2,367 Total assets $629,266 $259,036 $61,715 $134,429 $1,084,446 $1,050,774 Liabilities, Deferred Inflows of Resources, and Fund Balance Liabilities: Accounts payable $ - $ - $ - $ - $ - $1 Due to other governmental units - - - - - 927 Total liabilities 0 0 0 0 0 928 Deferred inflows of resources: Unavailable revenue 2,699 968 - 593 4,260 2,671 Total deferred inflows of resources 2,699 968 0 593 4,260 2,671 Fund balance: Restricted 626,567 258,068 61,715 133,836 1,080,186 1,047,175 Total fund balance 626,567 258,068 61,715 133,836 1,080,186 1,047,175 Total liabilities, deferred inflows of resources, and fund balance $629,266 $259,036 $61,715 $134,429 $1,084,446 $1,050,774 Totals Nonmajor Debt Service Funds 126 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, 2018 With Comparative Totals For The Year Ended December 31, 2017 Public Facilities Revenue Bonds Tax Abatement Fund Equipment Certificates Fund HSIP Tax Abatement 2018 2017 Revenues: General property taxes $345,081 $123,155 $ - $103,974 $572,210 $579,795 Investment income 5,878 2,624 752 964 10,218 5,610 Total revenues 350,959 125,779 752 104,938 582,428 585,405 Expenditures: Debt service: Principal 325,000 95,000 - 85,000 505,000 1,905,000 Interest 49,090 28,705 18,763 15,250 111,808 110,154 Paying agent fees 507 111 184 450 1,252 868 Professional service - 128 - 109 237 1,604 Issuance costs - - - - - 13,151 Total expenditures 374,597 123,944 18,947 100,809 618,297 2,030,777 Revenues over (under) expenditures (23,638)1,835 (18,195)4,129 (35,869) (1,445,372) Other financing sources (uses): Bonds issued - - - - - 10,963 Refunding bonds issued - - - - - 835,000 Premium on bonds issued - - - - - 48,477 Transfers in - - 68,880 - 68,880 692,146 Total other financing sources (uses)0 0 68,880 0 68,880 1,586,586 Net change in fund balance (23,638)1,835 50,685 4,129 33,011 141,214 Fund balance (deficit) - January 1 650,205 256,233 11,030 129,707 1,047,175 905,961 Fund balance (deficit) - December 31 $626,567 $258,068 $61,715 $133,836 $1,080,186 $1,047,175 Nonmajor Debt Service Funds Totals 127 - This page intentionally left blank - 128 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. 129 CITY OF ST. ANTHONY, MINNESOTA SUBCOMBINING BALANCE SHEET Statement 24 NONMAJOR CAPITAL PROJECT FUNDS December 31, 2018 With Comparative Totals For December 31, 2017 Revolving Improvement Park Improvement Capital Equipment Fund Building Improvement Fund 2018 2017 Assets Cash and investments $41,328 $121,660 $673,469 $368,736 $1,205,193 $2,113,871 Accrued interest - - - - - 2,180 Due from other governmental units 145,654 - 25,816 - 171,470 141,100 Prepaid items - - - - - 10,705 Property taxes receivable: Delinquent - - 1,444 486 1,930 955 Due from county - - 2,278 714 2,992 1,267 Special assessment receivable 13,373 - - - 13,373 15,428 Total assets $200,355 $121,660 $703,007 $369,936 $1,394,958 $2,285,506 Liabilities, Deferred Inflows of Resources, and Fund Balance Liabilities: Accounts payable $88,020 $ - $64,251 $21,300 $173,571 $98,372 Contracts payable 148,419 - - - 148,419 135,669 Interfund loan payable 33,720 - - - 33,720 39,340 Due to other governmental units - - - - - 157 Total liabilities 270,159 0 64,251 21,300 355,710 273,538 Deferred inflows of resources: Unavailable revenue 13,373 - 1,444 486 15,303 16,383 Total deferred inflows of resources 13,373 0 1,444 486 15,303 16,383 Fund balance (deficit): Nonspendable - - - - - 10,705 Assigned - 121,660 637,312 348,150 1,107,122 1,984,880 Unassigned (83,177) - - - (83,177) - Total fund balance (deficit)(83,177) 121,660 637,312 348,150 1,023,945 1,995,585 Total liabilities, deferred inflows of resources, and fund balance $200,355 $121,660 $703,007 $369,936 $1,394,958 $2,285,506 Nonmajor Capital Project Funds Totals 130 CITY OF ST. ANTHONY, MINNESOTA SUBCOMBINING STATEMENT OF REVENUES,Statement 25 EXPENDITURES AND CHANGES IN FUND BALANCE NONMAJOR CAPITAL PROJECT FUNDS For The Year Ended December 31, 2018 With Comparative Totals For The Year Ended December 31, 2017 Revolving Improvement Park Improvement Capital Equipment Fund Building Improvement Fund 2018 2017 Revenues: General property taxes $ - $ - $232,550 $72,873 $305,423 $303,528 Intergovernmental: Federal - - 25,816 - 25,816 - Other - local participation - - - - - 9,933 Special assessments 2,971 - - - 2,971 10,079 Investment income 3,432 1,996 12,686 4,338 22,452 18,811 Contributions and donations - - 600 - 600 840 Refunds and reimbursements 136,102 - 12 - 136,114 140,347 Total revenues 142,505 1,996 271,664 77,211 493,376 483,538 Expenditures: General government: Materials and supplies - - 2,076 6,409 8,485 84,097 Capital outlay - - 102,507 - 102,507 - Public safety: Other services and charges - - 233,167 - 233,167 - Capital outlay - - 603,056 - 603,056 108,224 Public works: Materials and supplies - - - 12,959 12,959 12,488 Contractual services 203,584 - 19,154 19,962 242,700 158,446 Capital outlay - - 14,605 21,301 35,906 241,285 Parks and recreation: Materials and supplies - 19,466 - - 19,466 15,758 Other services and charges - - - 8,825 8,825 - Capital outlay - 10,705 - - 10,705 - Debt service: Interest 5,299 - - - 5,299 5,825 Issuance costs - - - - - 10,231 Total expenditures 208,883 30,171 974,565 69,456 1,283,075 636,354 Revenues over (under) expenditures (66,378) (28,175) (702,901)7,755 (789,699) (152,816) Other financing sources (uses): Bonds issued - - - - - 509,037 Premium on bonds issued - - - - - 34,461 Sale of capital assets - - 64,754 - 64,754 28,244 Transfers in - - 90,000 90,185 180,185 175,890 Transfers out (358,000) - (68,880) - (426,880) (545,000) Total other financing sources (uses) (358,000)0 85,874 90,185 (181,941) 202,632 Net change in fund balance (424,378) (28,175) (617,027) 97,940 (971,640) 49,816 Fund balance (deficit) - January 1 341,201 149,835 1,254,339 250,210 1,995,585 1,945,769 Fund balance (deficit) - December 31 ($83,177) $121,660 $637,312 $348,150 $1,023,945 $1,995,585 Totals Nonmajor Capital Project Funds 131 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, 2018 With Comparative Actual Amounts For The Year Ended December 31, 2017 2017 Original Final Actual Actual Revenues: Charges for services: Rental receipts $127,300 $127,100 $127,300 $127,500 Investment income 425 425 787 643 Total revenues 127,725 127,525 128,087 128,143 Expenditures: Parks and recreation: Current: Personal services 43,378 43,378 43,006 42,093 Supplies 3,489 3,489 1,732 2,403 Contractual services 101,072 101,072 95,546 90,127 Total expenditures 147,939 147,939 140,284 134,623 Revenues over (under) expenditures (20,214) (20,414) (12,197)(6,480) Other financing sources (uses): Transfer in 90,185 90,185 90,185 85,890 Transfer out (90,185) (90,185) (90,185) (85,890) Total other financing sources (uses)0 0 0 0 Net change in fund balance ($20,214) ($20,414) (12,197)(6,480) Fund balance - January 1 53,176 59,656 Fund balance - December 31 $40,979 $53,176 2018 Budgeted Amounts 132 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, 2018 With Comparative Actual Amounts For The Year Ended December 31, 2017 2017 Original Final Actual Actual Revenues: Forfeiture and confiscation $2,750 $2,750 $12,964 $4,400 Investment income 425 425 491 302 Total revenues 3,175 3,175 13,455 4,702 Expenditures: Public safety: Current: Supplies 1,750 1,750 7,170 708 Other services and charges 5,031 5,031 - 3,253 Capital outlay: Public safety - - - 2,817 Total expenditures 6,781 6,781 7,170 6,778 Revenues over (under) expenditures ($3,606) ($3,606)6,285 (2,076) Fund balance - January 1 30,539 32,615 Fund balance - December 31 $36,824 $30,539 2018 Budgeted Amounts 133 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, 2018 With Comparative Actual Amounts For The Year Ended December 31, 2017 2017 Original Final Actual Actual Revenues: Intergovernmental: Hennepin County recycling grant $17,090 $17,090 $16,150 $18,989 Charges for services 3,250 3,250 4,282 3,598 Investment income 50 50 244 141 Total revenues 20,390 20,390 20,676 22,728 Expenditures: General government: Current: Personal services 9,936 9,936 10,081 8,941 Other services and charges 11,750 11,750 11,792 11,788 Total expenditures 21,686 21,686 21,873 20,729 Revenues over (under) expenditures ($1,296) ($1,296)(1,197)1,999 Fund balance - January 1 20,325 18,326 Fund balance - December 31 $19,128 $20,325 2018 Budgeted Amounts 134 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, 2018 With Comparative Actual Amounts For The Year Ended December 31, 2017 2017 Original Final Actual Actual Revenues: General property taxes $162,534 $162,534 $162,543 $156,098 Refunds and reimbursements 500 500 1,131 31,678 Investment income 150 150 - - Total revenues 163,184 163,184 163,674 187,776 Expenditures: Housing and redevelopment: Current: Personal services 117,857 117,857 117,269 111,463 Contractual services 7,960 27,960 31,697 19,798 Total expenditures 125,817 145,817 148,966 131,261 Revenues over (under) expenditures $37,367 $17,367 14,708 56,515 Fund balance (deficit) - January 1 48,933 (7,582) Fund balance (deficit) - December 31 $63,641 $48,933 2018 Budgeted Amounts 135 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, 2018 With Comparative Actual Amounts For The Year Ended December 31, 2017 2017 Original Final Actual Actual Revenues: Charges for services $2,500 $2,500 $2,717 $1,934 Investment income 25 25 92 48 Total revenues 2,525 2,525 2,809 1,982 Expenditures: Public safety: Current: Personal services 1,000 1,000 600 300 Materials and supplies 850 850 635 1,025 Total expenditures 1,850 1,850 1,235 1,325 Revenues over expenditures $675 $675 1,574 657 Fund balance - January 1 5,170 4,513 Fund balance - December 31 $6,744 $5,170 2018 Budgeted Amounts 136 CITY OF ST. ANTHONY, MINNESOTA STATEMENT OF CHANGES IN ASSETS AND LIABILITIES Statement 31 AGENCY FUND For The Year Ended December 31, 2018 Balance Balance January 1, December 31, 2018 Additions Deletions 2018 Developer Deposits Assets: Cash and investments $ - $91,647 ($91,647) $ - Accounts receivable - net 22,942 30,324 (37,249)16,017 Total assets $22,942 $121,971 ($128,896) $16,017 Liabilities: Cash deficit $14,942 $ - ($667) $14,275 Deposits payable 8,000 197,958 (204,216)1,742 Total liabilities $22,942 $197,958 ($204,883) $16,017 137 - This page intentionally left blank - 138 SUPPLEMENTARY FINANCIAL INFORMATION 139 CITY OF ST. ANTHONY, MINNESOTA BALANCE SHEET STREET IMPROVEMENT DEBT SERVICE FUND December 31, 2018 With Comparative Totals For December 31, 2017 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 2012 Street Improvement Bond Fund Assets Cash and investments $1,496,170 $172,245 $130,959 $172,871 $387,280 $372,803 Due from other governments - - - - - - Property taxes receivable: Delinquent 4,783 1,194 1,211 753 913 967 Due from county 5,515 1,511 1,512 940 1,094 1,332 Special assessments receivable 94,365 - 84,338 23,821 68,909 206,944 Total assets $1,600,833 $174,950 $218,020 $198,385 $458,196 $582,046 Liabilities, Deferred Inflows of Resources, and Fund Balance Liabilities: Accounts payable $ - $ - $ - $ - $ - $ - Due to other governmental units - - - - - - Deposits payable - - - - - - Total liabilities 0000 0 0 Deferred inflows of resources: Unavailable revenue 99,148 1,194 85,074 24,145 69,821 207,911 Total deferred inflows of resources 99,148 1,194 85,074 24,145 69,821 207,911 Fund balance (deficit): Restricted 1,501,685 173,756 132,946 174,240 388,375 374,135 Total fund balance (deficit)1,501,685 173,756 132,946 174,240 388,375 374,135 Total liabilities, deferred inflows of resources, and fund balance (deficit)$1,600,833 $174,950 $218,020 $198,385 $458,196 $582,046 140 Exhibit 1 2013 Street Improvement Bond Fund 2014 Street Improvement Bond Fund 2015 Street Improvement Bond Fund 2016 Street Improvement Bond Fund 2017 Street Improvement Bond Fund 2018 Street Improvement Bond Fund 2018 2017 $311,580 $207,266 $396,546 $173,944 $373,893 $252,551 $4,448,108 $4,064,362 - - - - 25,000 - 25,000 - 510 967 1,030 595 756 - 13,679 8,590 724 1,392 1,431 2,052 1,850 - 19,353 8,658 113,837 152,257 239,795 190,684 295,762 398,831 1,869,543 1,770,867 $426,651 $361,882 $638,802 $367,275 $697,261 $651,382 $6,375,683 $5,852,477 $ - $ - $ - $ - $ - $ - $ - $1 - - - - - - - 2,782 - - 3,127 - - - 3,127 2,042 0 0 3,1270003,127 4,825 114,347 153,224 240,824 191,278 321,518 387,439 1,895,923 1,777,551 114,347 153,224 240,824 191,278 321,518 387,439 1,895,923 1,777,551 312,304 208,658 394,851 175,997 375,743 263,943 4,476,633 4,070,101 312,304 208,658 394,851 175,997 375,743 263,943 4,476,633 4,070,101 $426,651 $361,882 $638,802 $367,275 $697,261 $651,382 $6,375,683 $5,852,477 Street Improvement Debt Service Funds 141 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, 2018 With Comparative Totals For The Year Ended December 31, 2017 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 2012 Street Improvement Bond Fund Revenues: General property taxes $532,988 $154,554 $149,067 $92,326 $112,035 $136,206 Special assessments 91,764 - 16,599 5,282 18,797 36,811 Investment income 15,801 1,039 333 1,514 4,499 3,801 Miscellaneous - - - - - - Total revenues 640,553 155,593 165,999 99,122 135,331 176,818 Expenditures: Debt service: Principal 860,000 140,000 160,000 85,000 120,000 135,000 Interest 73,170 22,825 46,493 14,734 47,600 37,263 Paying agent fees 1,364 626 113 400 450 90 Professional service 230 - 308 158 347 259 Issuance costs - - - - - - Total expenditures 934,764 163,451 206,914 100,292 168,397 172,612 Revenues over (under) expenditures (294,211) (7,858) (40,915) (1,170) (33,066)4,206 Other financing sources (uses): Bonds issued - - - - - - Refunding bonds issued - - - - - - Premium on bond issued - - - - - - Transfers in 123,963 10,000 24,037 20,000 30,000 35,000 Total other financing sources (uses) 123,963 10,000 24,037 20,000 30,000 35,000 Net change in fund balance (170,248) 2,142 (16,878) 18,830 (3,066) 39,206 Fund balance - January 1 1,671,933 171,614 149,824 155,410 391,441 334,929 Fund balance - December 31 $1,501,685 $173,756 $132,946 $174,240 $388,375 $374,135 142 Exhibit 2 2013 Street Improvement Bond Fund 2014 Street Improvement Bond Fund 2015 Street Improvement Bond Fund 2016 Street Improvement Bond Fund 2017 Street Improvement Bond Fund 2018 Street Improvement Bond Fund 2018 2017 $73,966 $142,207 $145,719 $105,720 $188,356 $ - $1,833,144 $1,807,259 16,351 36,224 46,591 43,637 78,892 197,452 588,400 358,068 3,759 1,445 4,089 1,266 1,750 1,109 40,405 23,067 - - - - - 475 475 - 94,076 179,876 196,399 150,623 268,998 199,036 2,462,424 2,188,394 115,000 130,000 155,000 85,000 - - 1,985,000 3,525,000 26,320 47,830 54,863 30,388 93,817 - 495,303 447,359 - 450 450 - 113 - 4,056 3,389 173 261 409 136 305 - 2,586 5,073 - - - 450 - - 450 29,467 141,493 178,541 210,722 115,974 94,235 0 2,487,395 4,010,288 (47,417)1,335 (14,323) 34,649 174,763 199,036 (24,971) (1,821,894) - - - - - 64,907 64,907 54,817 - - - - - - - 1,355,000 - - - - - - - 78,253 - 10,000 10,000 - 103,596 - 366,596 386,216 0 10,000 10,000 0 103,596 64,907 431,503 1,874,286 (47,417) 11,335 (4,323) 34,649 278,359 263,943 406,532 52,392 359,721 197,323 399,174 141,348 97,384 - 4,070,101 4,017,709 $312,304 $208,658 $394,851 $175,997 $375,743 $263,943 $4,476,633 $4,070,101 Street Improvement Debt Service Funds 143 CITY OF ST. ANTHONY, MINNESOTA BALANCE SHEET Exhibit 3 HRA TIF DEBT SERVICE FUND December 31, 2018 With Comparative Totals For December 31, 2017 2015B G.O Tax Increment Refunding Bonds 2014B G.O Tax Increment Refunding Bonds 2018 2017 Assets Cash and investments $4,222 $3,315 $7,537 $9,040 Total assets $4,222 $3,315 $7,537 $9,040 Liabilities, Deferred Inflows of Resources, and Fund Balance Liabilities: Accounts payable $ - $ - $ - $ - Total liabilities 0 0 0 0 Fund balance: Restricted 4,222 3,315 7,537 9,040 Total liabilities, deferred inflows of resources, and fund balance $4,222 $3,315 $7,537 $9,040 HRA TIF Debt Service Fund Totals 144 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, 2018 With Comparative Totals For The Year Ended December 31, 2017 2015B G.O Tax Increment Refunding Bonds 2014B G.O Tax Increment Refunding Bonds 2018 2017 Revenues: Investment income $ - $ - $ - $47 Total revenues 0 0 0 47 Expenditures: Debt service: Principal 225,000 180,000 405,000 385,000 Interest and other 91,913 90,325 182,238 190,038 Paying agent fees 770 732 1,502 1,503 Total expenditures 317,683 271,057 588,740 576,541 Revenues over (under) expenditures (317,683) (271,057) (588,740) (576,494) Other financing sources (uses): Transfers in 316,912 270,325 587,237 575,038 Total other financing sources (uses)316,912 270,325 587,237 575,038 Net change in fund balance (771)(732)(1,503)(1,456) Fund balance - January 1 4,993 4,047 9,040 10,496 Fund balance - December 31 $4,222 $3,315 $7,537 $9,040 HRA TIF Debt Service Fund Totals 145 CITY OF ST. ANTHONY, MINNESOTA BALANCE SHEET Exhibit 5 HRA TIF IMPROVEMENTS FUND December 31, 2018 With Comparative Totals For December 31, 2017 Chandler Place Apache (Wal- Mart) Apache (Cub Foods)Eliminations 2018 2017 Assets Cash and investments $124,514 $924,090 $401,564 $ - $1,450,168 $2,216,814 Prepaid expenses - 94,695 - - 94,695 - Interfund loan receivable 646,850 - 722,566 (1,369,416) - - Property taxes receivable: Delinquent - 46,028 - - 46,028 36,690 Due from county - 18,995 - - 18,995 9,024 Total assets $771,364 $1,083,808 $1,124,130 ($1,369,416) $1,609,886 $2,262,528 Liabilities, Deferred Inflows of Resources, and Fund Balance Liabilities: Accounts payable $2,560 $4,491 $1,360 $ - $8,411 $694,025 Contracts payable - - 20,188 - 20,188 148,858 Due to other governmental units - - - - - 2,920 Interfund loans payable - 2,328,742 - (1,369,416) 959,326 959,326 Total liabilities 2,560 2,333,233 21,548 (1,369,416) 987,925 1,805,129 Deferred inflows of resources: Unavailable revenue - 46,028 - - 46,028 36,690 Total deferred inflows of resources 0 46,028 0 0 46,028 36,690 Fund balance (deficit): Nonspendable - 94,695 - - 94,695 - Restricted 768,804 - 1,102,582 - 1,871,386 1,852,737 Unassigned - (1,390,148) - - (1,390,148) (1,432,028) Total fund balance (deficit)768,804 (1,295,453) 1,102,582 0 575,933 420,709 Total liabilities, deferred inflows of resources, and fund balance (deficit) $771,364 $1,083,808 $1,124,130 ($1,369,416) $1,609,886 $2,262,528 Tax Increment Financing Districts HRA TIF Improvements Total 146 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, 2018 With Comparative Totals For The Year Ended December 31, 2017 Chandler Place Apache (Wal- Mart) Apache (Cub Foods) 2018 2017 Revenues: Tax increment collections $ - $1,861,251 $ - $1,861,251 $1,541,874 Investment income 27,421 9,805 34,737 71,963 69,970 Total revenues 27,421 1,871,056 34,737 1,933,214 1,611,844 Expenditures: General government: Other - 21,815 - 21,815 21,848 Housing and redevelopment 6,185 - 5,104 11,289 1,176 Debt service: Interest - 93,150 - 93,150 93,150 Paying agent fees - 1,488 - 1,488 - Construction/acquisition costs - - 25,924 25,924 156,253 Developer incentives - 1,029,217 - 1,029,217 649,910 Total expenditures 6,185 1,145,670 31,028 1,182,883 922,337 Revenues over expenditures 21,236 725,386 3,709 750,331 689,507 Other financing sources (uses): Transfers out (3,148) (588,811) (3,148) (595,107) (575,038) Net change in fund balance 18,088 136,575 561 155,224 114,469 Fund balance (deficit) - January 1 750,716 (1,432,028) 1,102,021 420,709 306,240 Fund balance (deficit) - December 31 $768,804 ($1,295,453) $1,102,582 $575,933 $420,709 Tax Increment Financing Districts HRA TIF Improvements Totals 147 CITY OF ST. ANTHONY, MINNESOTA BALANCE SHEET Exhibit 7 STREET IMPROVEMENT PROJECT FUND December 31, 2018 With Comparative Totals For December 31, 2017 2016 Street Improvement Project Fund 2017 Street Improvement Project Fund 2018 Street Improvement Project Fund 2019 Street Improvement Project Fund 2020 Street Improvement Project Fund 2021 Street Improvement Project Fund 2018 2017 Assets Cash and investments $25,056 $ - $815,508 $ - $664 $ - $841,228 $355,367 Accrued interest - - 4,506 - - - 4,506 - Due from other governmental units 66,876 - - 21,455 - - 88,331 566,591 Total assets $91,932 $0 $820,014 $21,455 $664 $0 $934,065 $921,958 Liabilities, Deferred Inflows of Resources, and Fund Balance Liabilities: Accounts payable $ - $ - $65,636 $43,482 $13,853 $ - $122,971 $99,197 Contracts payable 92,671 - 244,611 - - - 337,282 508,145 Due to other governmental units - - - - - - - 1,131 Interfund payable - - - 75,774 - 18,147 93,921 176,936 Total liabilities 92,671 0 310,247 119,256 13,853 18,147 554,174 785,409 Deferred inflows of resources: Unavailable revenue - - - - - - - 25,000 Total deferred inflows of resources 000000025,000 Fund balance (deficit): Assigned (739) - 509,767 (97,801) (13,189) (18,147) 379,891 111,549 Total fund balance (deficit)(739)0 509,767 (97,801) (13,189) (18,147) 379,891 111,549 Total liabilities, deferred inflows of resources, and fund balance (deficit) $91,932 $0 $820,014 $21,455 $664 $0 $934,065 $921,958 Total Street Improvement Project Fund 148 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, 2018 With Comparative Totals For The Year Ended December 31, 2017 2016 Street Improvement Project Fund 2017 Street Improvement Project Fund 2018 Street Improvement Project Fund 2019 Street Improvement Project Fund 2020 Street Improvement Project Fund 2021 Street Improvement Project Fund 2018 2017 Revenues: Intergovernmental $ - $ - $47,147 $21,455 $ - $ - $68,602 $876,695 Special assessments - - 64,990 - - - 64,990 216,111 Investment income - 3,683 21,241 - - - 24,924 8,461 Contributions and donations 11,573 - - - - - 11,573 - Refunds and reimbursement 7,152 - - - - - 7,152 209,716 Miscellaneous - - - 7,500 - - 7,500 - Total revenues 18,725 3,683 133,378 28,955 0 0 184,741 1,310,983 Expenditures: Current: General government:9,156 - - - - - 9,156 - Debt service: Issuance costs - - 63,123 - - - 63,123 52,038 Construction/acquisition costs 42,311 150,655 2,254,184 126,756 13,189 18,147 2,605,242 4,116,326 Total expenditures 51,467 150,655 2,317,307 126,756 13,189 18,147 2,677,521 4,168,364 Revenues over (under) expenditures (32,742) (146,972) (2,183,929) (97,801) (13,189) (18,147) (2,492,780) (2,857,381) Other financing sources (uses): Bonds issued - - 2,545,093 - - - 2,545,093 2,545,183 Premium on bonds issued - - 92,831 - - - 92,831 141,349 Transfers in - - 226,794 - - - 226,794 - Transfers out - (103,596) - - - - (103,596) (843,362) Total other financing sources (uses)0 (103,596) 2,864,718 0 0 0 2,761,122 1,843,170 Net change in fund balance (32,742) (250,568) 680,789 (97,801) (13,189) (18,147) 268,342 (1,014,211) Fund balance (deficit) - January 1 32,003 250,568 (171,022) - - - 111,549 1,125,760 Fund balance (deficit) - December 31 ($739)$0 $509,767 ($97,801) ($13,189) ($18,147) $379,891 $111,549 Total Street Improvement Project Fund 149 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, 2018 With Comparative Totals For The Year Ended December 31, 2017 Water/Water Plant Sewer 2018 2017 Operating revenues: Charges for services $985,022 $1,136,667 $2,121,689 $2,044,726 Connection charges 25,700 25,500 51,200 47,650 Total operating revenues 1,010,722 1,162,167 2,172,889 2,092,376 Operating expenses: Personal services 556,450 323,314 879,764 847,134 Supplies 246,286 10,227 256,513 125,888 Contracted services and other 107,153 61,490 168,643 136,172 Treatment charges (MCES) - 708,567 708,567 643,390 Other 175,745 30,275 206,020 173,189 Depreciation 478,190 99,959 578,149 350,861 Total operating expenses 1,563,824 1,233,832 2,797,656 2,276,634 Operating income (loss)($553,102) ($71,665) (624,767) (184,258) Nonoperating revenues (expenses): Investment income 24,620 16,714 Interest expense (12,609)(15,200) Fees and cost of issuance (1,078)(603) Refunds and reimbursements 3,753 4,495 Miscellaneous income 6,105 13,094 Total nonoperating revenues (expenses)20,791 18,500 Income (loss) before capital contributions and transfers (603,976) (165,758) Capital contributions and transfers: Capital contributions 1,224,256 8,138,021 Transfers in 49,967 - Total capital contributions and transfers 1,274,223 8,138,021 Change in net position 670,247 7,972,263 Net position - January 1 15,998,867 8,026,604 Net position - December 31 $16,669,114 $15,998,867 Operations Totals 150 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. 152-160 Revenue Capacity These tables contain information to help the reader assess the City’s most significant local revenue source, the property tax. 162-165 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. 166-172 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. 176-177 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. 178-182 Sources: Unless otherwise noted, the information in these tables is derived from the comprehensive financial reports for the relevant year. 151 CITY OF ST. ANTHONY, MINNESOTA NET POSITION BY COMPONENT Last Ten Fiscal Years (Accrual Basis of Accounting) 2009 2010 2011 Governmental activities: Net invested in capital assets $12,367,934 $14,098,233 $15,334,754 Restricted for: Debt service 6,782,289 4,372,871 4,263,706 Redevelopment activity - - - Pensions - - - Public safety 60,985 34,320 16,281 Unrestricted (3,478,013) (1,339,821) (6,358,682) Total governmental activities net position $15,733,195 $17,165,603 $13,256,059 Business-type activities: Net invested in capital assets $5,017,685 $4,915,905 $4,767,233 Restricted for: Debt service 120,000 120,000 - Unrestricted 730,653 615,994 5,642,649 Total business-type activities net position $5,868,338 $5,651,899 $10,409,882 Primary government: Net invested in capital assets $17,385,619 $19,014,138 $20,101,987 Restricted for: Debt service 6,902,289 4,492,871 4,263,706 Redevelopment activity - - - Pensions - - - Public safety 60,985 34,320 16,281 Unrestricted (2,747,360) (723,827) (716,033) Total primary government net position $21,601,533 $22,817,502 $23,665,941 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 152 Table 1 2012 2013 2014 2015 2016 2017 2018 $15,182,974 $16,217,013 $14,953,582 $10,604,121 $10,024,670 $10,274,946 $10,422,047 4,741,115 3,347,895 5,717,140 6,147,172 6,282,913 6,537,390 7,097,594 - - - 12,411 - - - - - - - 197,073 219,561 200,075 21,521 21,528 23,471 19,283 25,634 23,865 31,141 (5,566,910) (5,239,277) (9,513,189) (10,391,885) 1,689,042 (5,330,379) (5,776,551) $14,378,700 $14,347,159 $11,181,004 $6,391,102 $18,219,332 $11,725,383 $11,974,306 $4,523,383 $5,605,845 $6,036,192 $12,143,158 $14,011,168 $22,151,578 $23,179,624 - - - - - - - 5,814,241 5,965,067 5,570,360 5,649,685 3,171,781 3,529,653 3,483,257 $10,337,624 $11,570,912 $11,606,552 $17,792,843 $17,182,949 $25,681,231 $26,662,881 $19,706,357 $21,822,858 $20,989,774 $22,747,279 $24,035,838 $32,426,524 $33,601,671 4,741,115 3,347,895 5,717,140 6,147,172 6,282,913 6,537,390 7,097,594 - - - 12,411 - - - - - - - 197,073 219,561 200,075 21,521 21,528 23,471 19,283 25,634 23,865 31,141 247,331 725,790 (3,942,829) (4,742,200) 4,860,823 (1,800,726) (2,293,294) $24,716,324 $25,918,071 $22,787,556 $24,183,945 $35,402,281 $37,406,614 $38,637,187 Fiscal Year 153 CITY OF ST. ANTHONY, MINNESOTA CHANGES IN NET POSITION Last Ten Fiscal Years (Accrual Basis of Accounting) 2009 2010 2011 (1) Expenses Governmental activities: General government $1,160,932 $1,310,199 $1,052,821 Public safety 2,937,528 2,898,043 2,971,316 Public works 1,839,163 1,841,083 1,834,066 Parks and recreation 424,590 440,858 457,822 Services to other cities 1,026,842 1,016,479 1,039,009 Housing and redevelopment 2,534,700 654,145 671,934 Interest on long-term debt 1,407,527 1,290,844 1,302,681 Total governmental activities expenses 11,331,282 9,451,651 9,329,649 Business-type activities: Liquor 6,156,097 6,360,985 6,537,271 Water 843,723 826,352 874,099 Water Filtration and Purification - - 132,981 Sewer 932,979 956,635 944,097 Stormwater - - - Total business-type activities expenses 7,932,799 8,143,972 8,488,448 Total primary government expenses $19,264,081 $17,595,623 $17,818,097 Program revenues Governmental activities: Charges for services: Services to other cities $1,156,500 $1,157,190 $1,180,334 Other activities 972,456 817,062 803,397 Operating grants and contributions 456,357 475,411 454,841 Capital grants and contributions 1,659,382 992,511 839,137 Total governmental activities program revenues 4,244,695 3,442,174 3,277,709 Business-type activities: Charges for services: Liquor 6,611,975 6,826,901 6,995,923 Water 806,987 785,642 798,240 Water filtration and purification - - - Sewer 776,330 789,872 779,513 Stormwater - - - Operating grants and contributions - - - Capital grants and contributions - - - Total business-type activities program revenues 8,195,292 8,402,415 8,573,676 Total primary government program revenues $12,439,987 $11,844,589 $11,851,385 Fiscal Year 154 Table 2 Page 1 of 2 2012 2013 (2)2014 2015 2016 2017 2018 $1,307,007 $1,029,147 $1,116,100 $1,342,360 $1,319,451 $1,337,698 $1,234,274 2,971,275 4,488,023 4,644,185 4,757,637 7,053,595 6,018,470 4,886,105 2,671,918 2,565,860 2,711,291 2,741,411 4,134,783 2,988,291 3,005,637 377,689 569,254 608,966 592,892 472,436 472,700 488,132 1,039,504 - - - - - - 649,104 565,303 575,738 596,444 793,834 787,775 1,189,659 1,197,073 1,217,646 1,044,635 845,856 794,584 738,914 795,625 10,213,570 10,435,233 10,700,915 10,876,600 14,568,683 12,343,848 11,599,432 6,618,975 6,479,809 5,879,240 5,728,876 5,676,892 5,591,683 5,617,377 901,732 859,112 845,396 869,446 1,083,240 1,176,102 1,573,857 114,337 124,505 239,074 185,964 - - - 1,041,085 1,019,421 1,069,876 1,051,261 1,048,937 1,144,273 1,243,591 - - - - 191,655 244,135 249,911 8,676,129 8,482,847 8,033,586 7,835,547 8,000,724 8,156,193 8,684,736 $18,889,699 $18,918,080 $18,734,501 $18,712,147 $22,569,407 $20,500,041 $20,284,168 $1,192,138 $ - $ - $ - $ - $ - $ - 1,067,084 2,506,369 2,374,306 2,414,912 2,212,526 2,281,654 1,602,792 447,554 585,950 499,538 499,126 10,969,360 630,316 560,924 1,566,565 780,072 1,070,975 1,367,745 1,643,911 1,604,844 817,077 4,273,341 3,872,391 3,944,819 4,281,783 14,825,797 4,516,814 2,980,793 7,139,381 6,908,143 6,078,039 5,893,916 5,822,783 5,714,000 5,867,452 957,824 933,051 879,007 900,412 925,577 969,638 1,010,722 - - - 45,655 - - - 877,794 947,632 921,242 953,568 1,012,979 1,122,738 1,162,167 - - - - 192,748 197,242 201,729 - - - - 130,932 - - - - - - 1,166,747 569,716 126,991 8,974,999 8,788,826 7,878,288 7,793,551 9,251,766 8,573,334 8,369,061 $13,248,340 $12,661,217 $11,823,107 $12,075,334 $24,077,563 $13,090,148 $11,349,854 Fiscal Year 155 CITY OF ST. ANTHONY, MINNESOTA CHANGES IN NET POSITION Last Ten Fiscal Years (Accrual Basis of Accounting) 2009 2010 2011 (1) Net (expense) revenue: Governmental activities ($7,086,587) ($6,009,477) ($6,051,940) Business-type activities 262,493 258,443 85,228 Total primary government net (expense) revenue (6,824,094) (5,751,034) (5,966,712) General revenues and other changes in net position: Governmental activities: Taxes: Property taxes $4,442,708 $4,750,440 $4,872,840 Tax increment collections 1,952,704 1,807,388 1,746,766 Grants and contributions 20,918 22,827 24,673 Unrestricted investment earnings 208,761 224,693 6,803 Other 16,103 61,866 148,500 Gain on sale of capital assets 3,981 - - Transfers 319,871 478,000 595,200 Total governmental activities 6,965,046 7,345,214 7,394,782 Business-type activities: Unrestricted investment earnings 6,833 (336)52,659 Other 10,353 3,454 3,976 Transfers (319,871) (478,000) (595,200) Total business-type activities (302,685) (474,882) (538,565) Total primary government $6,662,361 $6,870,332 $6,856,217 Change in net position: Governmental activities ($121,541) $1,335,737 $1,342,842 Business-type activities (40,192) (216,439) (453,337) Total primary government ($161,733) $1,119,298 $889,505 (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 156 Table 2 Page 2 of 2 2012 2013 (2)2014 2015 2016 2017 2018 ($5,940,229) ($6,562,842) ($6,756,096) ($6,594,817) $257,114 ($7,827,034) ($8,618,639) 298,870 305,979 (155,298) (41,996) 1,251,042 417,141 (315,675) (5,641,359) (6,256,863) (6,911,394) (6,636,813) 1,508,156 (7,409,893) (8,934,314) $5,408,188 $5,703,707 $6,030,558 $5,893,900 $6,160,156 $6,577,570 $7,128,703 1,335,674 1,405,872 1,131,896 1,121,627 1,455,090 1,530,093 1,870,589 10,639 26,384 461,964 516,015 530,110 535,422 559,437 55,206 25,914 189,441 146,023 254,396 234,572 286,519 208,525 389,785 104,113 172,913 1,207,375 407,269 225,774 46,195 - 33,204 7,653 7,151 34,775 48,529 610,000 (809,238) (17,982) (6,053,216) 1,956,838 (7,986,616) (1,251,989) 7,674,427 6,742,424 7,933,194 1,804,915 11,571,116 1,333,085 8,867,562 122,833 51,593 111,512 86,407 31,097 21,812 32,771 17,569 66,478 61,444 88,664 64,805 72,713 12,565 (610,000) 809,238 17,982 6,053,216 (1,956,838) 7,986,616 1,251,989 (469,598) 927,309 190,938 6,228,287 (1,860,936) 8,081,141 1,297,325 $7,204,829 $7,669,733 $8,124,132 $8,033,202 $9,710,180 $9,414,226 $10,164,887 $1,734,198 $179,582 $1,177,098 ($4,789,902) $11,828,230 ($6,493,949) $248,923 (170,728) 1,233,288 35,640 6,186,291 (609,894) 8,498,282 981,650 $1,563,470 $1,412,870 $1,212,738 $1,396,389 $11,218,336 $2,004,333 $1,230,573 Fiscal Year 157 CITY OF ST. ANTHONY, MINNESOTA FUND BALANCES - GOVERNMENTAL FUNDS Last Ten Fiscal Years (Modified Accrual Basis of Accounting) 2009 2010 2011 General Fund: Reserved $53,849 $57,430 $ - Unreserved 1,471,584 1,567,270 - Nonspendable - - 55,271 Unassigned - - 1,647,566 Total general fund $1,525,433 $1,624,700 $1,702,837 All other governmental funds: Reserved $6,264,349 $4,625,111 $ - Unreserved, reported in: Special revenue funds 5,329,291 5,212,683 - Capital projects funds 314,789 243,408 - Nonspendable - - 132 Restricted - - 6,868,120 Committed - - 210,953 Assigned - - 763,667 Unassigned - - (1,240,578) Total all other governmental funds $11,908,429 $10,081,202 $6,602,294 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 158 Table 3 2012 2013 2014 2015 2016 2017 2018 $ - $ - $ - $ - $ - $ - $ - - - - - - - - 68,481 74,049 91,136 107,412 115,482 119,651 126,304 1,906,856 2,074,490 2,384,345 2,338,600 2,204,185 2,280,463 2,381,460 $1,975,337 $2,148,539 $2,475,481 $2,446,012 $2,319,667 $2,400,114 $2,507,764 $ - $ - $ - $ - $ - $ - $ - - - - - - - - - - - - - - - 129 49 1,631 2,157 57,188 15,339 97,687 8,594,337 2,002,737 7,627,714 6,491,789 6,907,253 7,002,918 7,466,883 222,184 33,015 78,180 94,107 105,503 125,069 124,355 1,344,529 1,253,470 1,318,583 578,258 13,148,229 6,568,756 5,374,785 (1,473,482) (175,561) (2,407,745) (2,062,163) (1,693,729) (1,452,918) (1,409,874) $8,687,697 $3,113,710 $6,618,363 $5,104,148 $18,524,444 $12,259,164 $11,653,836 Fiscal Year 159 CITY OF ST. ANTHONY, MINNESOTA CHANGES IN FUND BALANCES - GOVERNMENTAL FUNDS Last Ten Fiscal Years (Modified Accrual Basis of Accounting) 2009 2010 2011 (1) 2012 Revenues: General property taxes $4,407,221 $4,787,076 $4,877,268 $5,416,328 Tax increment collections 1,903,840 1,911,678 1,708,873 1,364,881 Licenses, fees and permits 358,381 224,096 195,563 290,985 Intergovernmental 1,430,366 1,239,053 861,744 1,530,983 Special assessments 506,262 398,895 517,678 427,467 Charges for services 1,519,427 1,528,210 1,573,975 1,736,274 Cable franchise fees 92,309 92,786 96,608 101,403 Fines and forfeits 122,870 128,165 117,835 130,560 Investment income 184,053 224,598 6,792 55,201 Contributions and donations 3,450 2,834 610 2,778 Miscellaneous 53,354 708,181 148,500 194,052 Total revenues 10,581,533 11,245,572 10,105,446 11,250,912 Expenditures: Current: General government 1,017,405 1,170,630 883,478 1,059,361 Public safety 2,654,708 2,615,752 2,700,328 2,671,890 Public works 761,530 726,064 684,761 818,851 Parks and recreation 401,787 388,808 366,153 344,702 Services to other cities 1,026,842 1,016,479 1,039,009 1,039,504 Nondepartmental 6,798 6,940 22,283 160,513 Housing and redevelopment 191,608 183,513 227,921 240,097 Capital outlay: General government - - 12,661 46,588 Public safety - 67,850 152,405 130,000 Public works 271,459 212,029 112,158 170,056 Parks and recreation - - - - Debt service: Principal retirement 1,970,000 4,255,000 3,120,000 4,255,000 Interest 1,369,280 1,392,608 1,271,549 1,299,266 Paying agent fees 9,519 8,763 11,582 18,811 Professional service 5,077 3,117 30,109 3,480 Issuance costs 49,420 - 67,278 132,217 Construction/acquisition costs 4,789,180 2,420,767 1,953,923 2,253,448 Developer incentives 443,092 470,632 444,013 409,007 Total expenditures 14,967,705 14,938,952 13,099,611 15,052,791 Revenues over (under) expenditures (4,386,172)(3,693,380)(2,994,165)(3,801,879) Other financing sources (uses): Bonds issued 3,965,000 1,375,000 1,940,000 2,195,000 Refunding bonds issued 2,855,000 - 3,225,000 7,300,000 Redemption of refunded bonds (1,210,000) - (1,030,000) - Payment to refunded bond escrow agent - - - (4,015,373) Premium on debt issued 140,492 402 105,598 190,221 Sale of capital assets 12,056 15,347 9,982 10,962 Transfers in 1,307,574 3,634,584 1,603,430 1,626,372 Transfers out (829,574)(3,156,584)(1,008,230)(1,016,372) Total other financing sources(uses)6,240,548 1,868,749 4,845,780 6,290,810 Net change in fund balance $1,854,376 ($1,824,631)$1,851,615 $2,488,931 Debt service as a percentage of noncapital expenditures 33.7%46.1%40.4%44.6% Debt service as percentage of total expenditures 22.3%37.8%33.5%36.9% (1) In 2011 the Water Filtration and Purification fund was reclassified to the Water and Sewer Proprietary Fund. (2) In 2013, services to other cities were reclassified to public safety expense. Fiscal Year 160 Table 4 2013 (2) 2014 2015 2016 2017 2018 $5,657,416 $6,053,119 $5,897,070 $6,161,036 $6,633,308 $7,107,947 1,398,000 1,117,824 1,106,582 1,476,275 1,541,874 1,861,251 342,390 351,102 296,465 304,079 358,230 295,955 792,477 1,464,479 1,644,481 2,283,016 1,925,460 1,136,456 587,191 491,988 621,931 570,549 589,332 658,532 1,932,268 1,787,611 1,879,520 1,701,246 1,732,288 1,097,940 104,089 109,009 108,104 113,672 115,079 101,612 129,363 126,584 130,823 93,529 76,057 85,538 24,197 189,216 145,447 252,830 233,668 284,452 16,134 45,640 15,903 4,120 102,340 16,046 375,719 104,113 172,913 11,637,694 407,269 217,071 11,359,244 11,840,685 12,019,239 24,598,046 13,714,905 12,862,800 836,190 926,501 948,089 1,066,236 1,119,746 1,048,214 4,174,754 4,357,563 4,352,048 5,164,270 5,346,521 4,861,358 1,042,876 1,001,378 1,043,791 1,051,747 1,034,427 1,208,232 420,826 463,057 446,684 409,979 406,748 431,091 - - - - - - 56,117 59,265 40,139 38,421 45,095 61,262 150,070 143,863 119,294 156,312 132,437 160,255 8,157 38,826 168,176 8,201 - 102,507 5,792 283,189 150,645 256,053 111,041 603,056 270,443 53,143 67,831 134,590 320,470 331,854 - 49,464 - - - - 4,245,000 7,785,000 3,750,000 2,620,000 5,815,000 2,895,000 1,308,344 1,139,216 1,020,262 820,607 846,526 887,798 16,387 7,853 10,386 14,793 5,760 29,308 6,682 17,104 16,971 16,339 6,677 2,823 66,035 185,800 142,682 80,294 104,887 42,563 1,618,986 2,959,264 3,750,269 4,867,870 9,908,037 2,720,619 415,233 431,875 475,886 627,639 649,910 1,029,217 14,641,892 19,902,361 16,503,153 17,333,351 25,853,282 16,415,157 (3,282,648)(8,061,676)(4,483,914)7,264,695 (12,138,377)(3,552,357) 1,775,000 2,070,000 2,580,000 2,900,000 3,120,000 2,610,000 - 4,970,000 4,310,000 - 2,190,000 - - - - - - - - - (4,332,935) - - - 42,080 158,044 188,693 69,485 302,540 92,831 25,244 13,390 25,860 15,186 28,244 64,754 2,021,913 1,908,166 2,069,259 4,003,953 312,760 287,094 (1,482,913)(1,514,667)(1,900,647)(959,368) - - 2,381,324 7,604,933 2,940,230 6,029,256 5,953,544 3,054,679 ($901,324)($456,743)($1,543,684)$13,293,951 ($6,184,833)($497,678) 43.6%54.2%36.5%25.7%41.5%29.8% 37.9%44.8%28.9%19.8%25.8%23.0% Fiscal Year 161 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 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% 2017 7,800,780 2,136,787 117,840 10,055,407 (751,642) 9,303,765 69.59% 906,848,000 1.11% 2018 8,225,455 2,301,748 121,376 10,648,579 (856,989) 9,791,590 70.02% 954,111,600 1.12% Source: Official Statements for the City of St. Anthony. (Hennepin and Ramsey Counties Combined) * Includes tax increment tax capacity and net fiscal disparities impact. 162 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 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% 2017 69.59%33.43%11.69%44.09%158.80% 2018 70.02%37.56%11.07%42.81%161.45% 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* 163 CITY OF ST. ANTHONY, MINNESOTA PRINCIPAL PROPERTY TAXPAYERS Table 7 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 $654,918 1 6.15% 758,128 1 7.73% St. Anthony Leased Housing 501,195 2 4.71% 364,550 2 3.72% Assoc. I Autumn Woods Partners LP 263,838 3 2.48% 205,800 3 2.10% Equinox Properties LLC 237,506 4 2.23% 186,200 4 1.90% St. Anthony Shopping Center 163,330 5 1.53% 98,252 5 1.00% St. Anthony Leased Housing 152,961 6 1.44% Assoc. II Xcel Energy 128,912 7 1.21% Autumn Woods Partners III 119,225 8 1.12% Landau - 3925 Pleasant 97,971 9 0.92% 83,426 7 0.85% Chandler Place LP 93,750 10 0.88% 82,329 9 0.84% LG Anderson LLC/Apache Medical 89,250 6 0.91% St. Anthony Nursing Home LP 82,449 8 0.84% Herama/Commonwealth Electric 71,250 10 0.73% Total $2,413,606 22.67% $2,021,634 20.62% Total All Property $10,648,579 $9,805,689 Source: Official Statements for the City of St. Anthony 20092018 164 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 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%41,702 4,751,960 99.80% 2012 5,223,089 5,157,341 98.74%39,080 5,196,421 99.49% 2013 5,426,789 5,345,759 98.51%23,300 5,369,059 98.94% 2014 5,633,007 5,564,141 98.78%(41,193) 5,522,949 98.05% 2015 5,831,737 5,733,450 98.31%(11,884) 5,721,566 98.11% 2016 6,050,812 5,974,249 98.73%17,807 5,992,056 99.03% 2017 6,450,785 6,400,683 99.22%1,464 6,402,147 99.25% 2018 6,850,011 6,801,704 99.29% (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 165 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 Reconstruction Increment Revenue Revenue G.O. Fannie Governmental Year Bonds Bonds Bonds Bonds Bonds Bonds Mae Loan Activities 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 2017 18,920,000 1,035,000 7,065,000 2,510,000 - 1,640,000 - 31,170,000 2018 19,685,000 895,000 6,660,000 2,185,000 - 1,460,000 - 30,885,000 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 166 Table 9 Sewer/ Water Percentage Sewer/ Liquor Total Bonds Total Percentage of Adjusted Water Revenue Business-Type Per Primary of Personal Per Tax Capacity Bonds Bonds Activities Customer Government Income Capita* 399.71% $1,815,000 $185,000 $2,000,000 $789 $38,090,000 12.20% $4,239 381.75% 1,730,000 95,000 1,825,000 752 35,035,000 11.75% 4,037 412.57% 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% 3,760 395.58% 1,215,000 - 1,215,000 528 32,610,000 9.41% 3,532 357.63% 1,100,000 - 1,100,000 478 32,775,000 9.37% 3,533 335.03% 975,000 - 975,000 424 32,145,000 8.59% 3,494 315.42% 845,000 - 845,000 367 31,730,000 Not Available Business-Type Activities 167 - This page intentionally left blank - 168 CITY OF ST. ANTHONY, MINNESOTA DIRECT AND OVERLAPPING GOVERNMENTAL ACTIVITIES DEBT Table 10 As of December 31, 2018 Estimated Estimated Share of Debt Percentage Overlapping Governmental Unit Outstanding Applicable* Debt Debt repaid with property taxes: (1) School Districts: ISD No. 282 $32,665,000 53.5335% $17,486,718 Counties: Hennepin 950,945,000 0.3741% 3,557,485 Ramsey 155,545,000 0.4965% 772,281 Other: Metropolitan Council 148,045,000 0.0821% 121,548 Three Rivers Park District 53,355,000 0.5271% 281,234 Subtotal - overlapping debt 22,219,266 City direct debt (2)30,885,000 Total direct and overlapping debt $53,104,266 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. 169 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 2009 2010 2011 Debt limit $24,778,098 $23,262,423 $22,184,277 Total net debt applicable to limit 5,410,204 5,059,006 4,708,301 Legal debt margin $19,367,894 $18,203,417 $17,475,976 Total net debt applicable to the limit as a percentage of debt limit 21.83%21.75%21.22% Source: Market Value - Hennepin County and Ramsey County, Minnesota Assessor's Offices Legal Debt Margin Calculation for Fiscal Year 2018 170 Table 11 $916,911,815 27,507,354 3,600,000 (795,439) 2,804,561 $24,702,793 2012 2013 2014 2015 2016 2017 2018 $21,518,115 $20,237,210 $20,226,682 $21,500,127 $24,651,217 $26,027,076 $27,507,354 4,902,237 4,450,131 4,031,063 3,615,981 3,176,798 3,244,392 2,804,561 $16,615,878 $15,787,079 $16,195,619 $17,884,147 $21,474,419 $22,782,684 $24,702,793 22.78% 21.99% 19.93% 16.82% 12.89% 12.47% 10.20% Legal Debt Margin Calculation for Fiscal Year 2018 171 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 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 - - - - - - 2017 - - - - - - 2018 - - - - - - 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 172 Table 12 Page 1 of 2 Utility Less Net Service Operating Available Charges Expenses Revenue Principal Interest Coverage $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% 2,092,376 1,925,773 166,603 125,000 19,708 115% 2,172,889 2,219,507 (46,618)130,000 18,200 (31%) Water and Sewer Revenue Bonds Debt Service 173 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 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 2017 1,359,067 1,141,171 217,896 - - N/A 2018 1,522,688 1,196,467 326,221 - - 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 174 Table 12 Page 2 of 2 Special Tax Assessment Increment Collections Principal Interest Coverage Collections Principal Interest Coverage $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% 589,332 5,430,000 557,511 10% 1,541,874 385,000 190,038 268% 658,532 2,490,000 607,109 21% 1,861,251 405,000 182,238 317% Debt Service Tax Increment BondsImprovement Bonds Debt Service 175 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) 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 9,234 333,684,413 36,136 3.30% 2016 9,277 338,053,880 36,440 3.40% 2017 9,200 362,710,000 39,425 3.10% 2018 Not Available 2.50% Sources: (1) Metropolitan Council Estimates for St. Anthony (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 176 CITY OF ST. ANTHONY, MINNESOTA PRINCIPAL EMPLOYERS Table 14 Current Year and Nine Years Ago Employer Employees Rank Employees Rank St. Anthony Health Center/Chandler Place 270 1 245 3 Cub Foods 250 2 260 2 ISD No. 282 (St. Anthony - New Brighton)206 3 270 1 City of St. Anthony 132 4 132 5 I Care Cab 120 5 - - B&F Fastener Supply 100 6 - - St. Charles Borromeo Parish 92 7 - - North Memoral - Silver Lake Clinic 81 8 - - Marshall Manufacturing 60 9 40 10 Happy's Potato Chip Company 50 10 50 8 Wal-Mart - - 160 4 Triangle Industries - - 80 6 Triangle Industries - - 80 7 Industrial Custom Products - - 50 9 Total 1,361 1,367 Source: Official Statements for the City of St. Anthony 20092018 177 CITY OF ST. ANTHONY, MINNESOTA FULL-TIME EQUIVALENT CITY GOVERNMENT EMPLOYEES BY FUNCTION/PROGRAM Last Ten Fiscal Years Function/Program 2009 2010 2011 2012 General government: Administration 3.00 3.00 3.00 2.00 Finance 4.75 4.75 4.50 4.25 Police: Officers 23.00 23.00 23.00 23.00 Support staff 2.50 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 5.00 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 2.00 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 6.00 6.00 6.00 Silver Lake Village - part-time 5.25 6.00 6.00 6.00 Total 87.75 89.25 88.00 87.75 Source: City of St. Anthony Full-Time Equivalent Employees as of December 31, 178 Table 15 2013 2014 2015 2016 2017 2018 2.00 2.00 2.00 2.50 2.50 2.60 4.25 4.25 4.50 4.00 4.00 4.00 23.00 23.00 23.00 23.00 20.00 20.00 2.50 2.50 2.50 2.50 2.50 2.00 1.00 1.00 1.00 1.00 1.00 1.00 12.00 12.00 12.00 12.00 12.00 12.00 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 6.00 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 6.00 6.00 6.00 6.00 4.50 4.50 4.50 4.65 6.00 6.00 4.50 4.00 4.00 4.25 87.75 87.75 85.00 84.50 82.50 82.50 Full-Time Equivalent Employees as of December 31, 179 CITY OF ST. ANTHONY, MINNESOTA OPERATING INDICATORS BY FUNCTION/PROGRAM Last Ten Fiscal Years Function/Program 2009 2010 2011 2012 Police: * Moving violation 2,008 2,305 1,848 1,851 Non-moving violations 351 397 210 200 DWI 59 49 44 39 Traffic arrests 770 600 673 578 Gross and misdemeanor arrests 193 129 145 164 Felony arrests 32 29 46 37 Warrant arrests 32 28 28 20 Fire: Emergency responses 996 1,203 1,221 1,267 Medical responses 718 895 894 933 Fires 32 34 35 40 Inspections 92 97 121 116 Building inspection: Permits issued 283 315 336 272 Other public works: Street reconstruction/resurfacing (miles)1 1 2 1 Potholes filled (tons)80 22 100 84 Water: New connections - 7 1 39 Water mains breaks 9 11 10 10 Average daily consumption (thousands of gallons)885 806 821 884 Peak daily consumption (thousands of gallons)2,295 1,396 1,586 1,879 * Police statistics are for St Anthony only Source: City of St. Anthony Fiscal Year 180 Table 16 2013 2014 2015 2016 2017 2018 2,068 2,017 2,213 1,488 846 1,376 396 321 197 192 65 394 34 39 23 15 21 39 679 633 661 469 249 292 244 130 77 50 63 86 67 53 44 51 20 59 23 25 24 13 20 22 1,409 1,363 1,425 1,534 1,621 1,521 1,016 1,012 1,062 1,113 1,166 1,116 26 26 26 14 17 16 88 256 238 173 216 210 303 288 533 342 292 261 112110.5 39 34 66 23 198 64 122 28 7 1 29 30 788278 822 763 770 715 731 759 1,724 1,635 1,571 1,153 1,453 1,764 Fiscal Year 181 CITY OF ST. ANTHONY, MINNESOTA CAPITAL ASSET STATISTICS BY FUNCTION/PROGRAM Last Ten Fiscal Years Function/Program 2009 2010 2011 2012 Police: Stations 1 1 1 1 Fleet units 12 13 13 14 Fire stations:1 1 1 1 Fleet units 8 8 8 8 Other public works: City streets (miles)24.7 24.7 24.7 24.7 Sidewalks (miles)10.2 11.1 11.1 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 2 2 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 1 1 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 182 Table 17 2013 2014 2015 2016 2017 2018 111111 14 14 14 14 13 13 111111 888888 24.7 24.7 24.7 24.7 24.7 24.7 11.1 11.1 11.1 11.6 12.3 12.3 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 24.7 287 287 287 288 288 288 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 112222 566666 15.0 15.0 15.0 15.0 15.0 15.0 Fiscal Year 183 - This page intentionally left blank - 184