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HomeMy WebLinkAbout2019 CAFR COMPREHENSIVE ANNUAL FINANCIAL REPORT OF THE CITY OF ST. ANTHONY, MINNESOTA FOR THE YEAR ENDED DECEMBER 31, 2019 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 Notes to Financial Statements 41 Required Supplementary Information: Budgetary Comparison Schedule - General Fund Statement 9 90 Schedule of Changes in the City's Total OPEB Liability and Related Ratios Statement 10 95 Schedule of Proportionate Share of Net Pension Liability - General Employees Retirement Fund Statement 11 96 Schedule of Pension Contributions - General Employees Retirement Fund Statement 12 97 Schedule of Proportionate Share of Net Pension Liability - Public Employees Police and Fire Fund Statement 13 98 Schedule of Pension Contributions - Public Employees Police and Fire Fund Statement 14 99 Schedule of Changes in the Net Pension Liability and Related Ratios - St. Anthony Fire Department Relief Association Statement 15 100 Schedule of Contributions - St. Anthony Fire Department Relief Association Statement 16 101 Notes to RSI 103 I. INTRODUCTORY SECTION II. FINANCIAL SECTION CITY OF ST. ANTHONY, MINNESOTA TABLE OF CONTENTS Page Reference No. Combining and Individual Nonmajor Fund Financial Statements and Schedules: Combining Balance Sheet - Nonmajor Governmental Funds Statement 17 110 Combining Statement of Revenues, Expenditures and Changes in Fund Balance - Nonmajor Governmental Funds Statement 18 111 Subcombining Balance Sheet - Nonmajor Special Revenue Funds Statement 19 116 Subcombining Statement of Revenues, Expenditures and Changes in Fund Balance - Nonmajor Special Revenue Funds Statement 20 118 Subcombining Balance Sheet - Nonmajor Debt Service Funds Statement 21 122 Subcombining Statement of Revenues, Expenditures and Changes in Fund Balance - Nonmajor Debt Service Funds Statement 22 123 Subcombining Balance Sheet - Nonmajor Capital Project Funds Statement 23 126 Subcombining Statement of Revenues, Expenditures and Changes in Fund Balance - Nonmajor Capital Project Funds Statement 24 127 Special Revenue Funds: Schedules of Revenues, Expenditures and Changes in Fund Balance - Budget and Actual: Community Center Fund Statement 25 128 Police Forfeiture Fund Statement 26 129 Recycling Fund Statement 27 130 HRA Fund Statement 28 131 Fire Education/Training Fund Statement 29 132 Supplementary Financial Information: Street Improvement Debt Service Fund: Balance Sheet Exhibit 1 134 Schedule of Revenues, Expenditures and Changes in Fund Balance Exhibit 2 136 HRA TIF Debt Service Fund: Balance Sheet Exhibit 3 138 Schedule of Revenues, Expenditures and Changes in Fund Balance Exhibit 4 139 HRA TIF Improvements Fund: Balance Sheet Exhibit 5 140 Schedule of Revenues, Expenditures and Changes in Fund Balance Exhibit 6 141 Street Improvement Project Fund: Balance Sheet Exhibit 7 142 Schedule of Revenues, Expenditures and Changes in Fund Balance Exhibit 8 143 Water/Sewer/Water Plant Enterprise Fund: Schedule of Revenues, Expenses and Changes in Fund Net Position Exhibit 9 144 CITY OF ST. ANTHONY, MINNESOTA TABLE OF CONTENTS Page Reference No. Financial Trends: Net Position by Component Table 1 146 Changes in Net Position Table 2 148 Fund Balances - Governmental Funds Table 3 152 Changes in Fund Balances - Governmental Funds Table 4 154 Revenue Capacity: Tax Capacity Value and Estimated Market Value of Taxable Property Table 5 156 Direct and Overlapping Property Tax Rates Table 6 157 Principal Property Taxpayers Table 7 158 Property Tax Levies and Collections Table 8 159 Debt Capacity: Ratios of Outstanding Debt by Type Table 9 160 Direct and Overlapping Governmental Activities Debt Table 10 163 Legal Debt Margin Information Table 11 164 Pledged Revenue Coverage Table 12 166 Demographic and Economic: Demographic and Economic Statistics Table 13 172 Principal Employers Table 14 171 Operating Information: Full-Time Equivalent City Government Employees by Function/Program Table 15 172 Operating Indicators by Function/Program Table 16 174 Capital Asset Statistics by Function/Program Table 17 176 III. STATISTICAL SECTION (Unaudited) - This page intentionally left blank - I. INTRODUCTORY SECTION 1 - This page intentionally left blank - 2    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     June 16, 2020    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, 2019.  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, 2019.  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.  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   The City is located 10 minutes north of downtown Minneapolis and 15 minutes northwest of  downtown St. Paul.  City residents and businesses have easy access to all parts of the  Minneapolis‐St. Paul metropolitan area by the use of Interstate 35W, Interstate 694 and  Highway 280.  The City is served by Independent School District (ISD) #282 (St. Anthony), which has a  2019/2020 enrollment of approximately 1,700, 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  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   budget to the City Council for their review prior to the certification of the proposed levy to the  County Auditors by September 30th.  The City Council is required to hold public hearings on  the proposed budget and to adopt a final budget by December 31, the close of the City of St.  Anthony’s fiscal year.  The appropriated budget is prepared for the General Fund by function (e.g., public safety), and  department (e.g., police), and object code (e.g., salaries). Transfers of appropriations between  departments require the approval of the City Council.  Budget‐to‐actual comparisons are  provided on Statement 10 as required supplementary information to the basic financial  statements for the governmental funds.    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.    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   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  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 2019 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. State of Minnesota – Vest Grant.  B. Ramsey County – Safe and Sober Grant.  C. Minnesota Board of Firefighter Training & Education Grant.  D. Hennepin County Recycling Grant.  E. Ramsey County Recycling Grant.  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   F. State of Minnesota General Obligation Bond Grant for the Silver Lake  Road flood risk reduction project  G. State Board of Soil and Water Resources Grant for the Silver Lake Road  flood risk reduction project    H. Rice Creek Watershed District Grant for the Silver Lake Road flood risk  reduction project  I. Metropolitan Council Inflow and Infiltration 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 County  infrastructure projects when opportunity arises. A recent example would be the matching the  Silver Lake Road flood mitigation project with the Ramsey County’s plan to mill and over lay  Silver Lake Road.     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     7 - This page intentionally left blank - 8 CITY OF ST. ANTHONY, MINNESOTA ORGANIZATION Term Expires Mayor: Randy Stille December 31, 2023 Council Members: Jan Jenson December 31, 2021 Thomas Randle December 31, 2023 Bernard Walker December 31, 2023 Wendy Webster December 31, 2021 City Manager: Mark Casey Appointed Finance Director: Shelly Rueckert Appointed December 31, 2019 9 Engineer - WSB & Associates Full-Time Positions = 58 Financial - Ehlers & Associates Part-Time Positions (average) = 49 Legal - Dorsey & Whitney Public Works Seasonal=10 Planner - Northwest Associated Constultants, Inc. Police Reserves (Unpaid) = 12 Building Inspections - City of New Brighton Consultants Parks & Environmental Commission City Manager 5 Full time Employees 25 Part time Employees FINANCE 2020 ADMINISTRATION 7 Full time Employees 24 Part time Employees MAYOR AND COUNCIL MEMBERS Planning Commission Administrative Services Coordinator 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 Communications Coordinator 1 Shared Employee PUBLIC WORKS 14 Full time Employees FIRE 10 Seasonal Employees10 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, 2019, 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, 2019, 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 2018 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 May 30, 2019. In our opinion, the summarized comparative information presented herein as of and for the year ended December 31, 2018 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 schedule, and the schedules of OPEB and pension information, as listed in the table of contents, 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 June 16, 2020, 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 June 16, 2020 15 - This page intentionally left blank - 16 MANAGEMENT’S DISCUSSION AND ANALYSIS As management of the City of St. Anthony, Minnesota (the City), we offer readers of the City’s financial statements this narrative overview and analysis of the financial activities of the City for the fiscal year ended December 31, 2019. 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 and deferred outflows of resources of the City exceeded its liabilities and deferred inflows of resources at the close of the most recent fiscal year by $40,175,875 (net position).  The City’s total net position increased by $1,538,688 from the prior year’s stated net position.  As of the close of the current fiscal year, the City’s governmental funds reported combined ending fund balances of $14,482,106, an increase of $320,506 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 $2,489,685 or 35% of total General Fund Budget expenditures.  The City’s total bonded debt decreased by $2,560,000 (8%) during the current fiscal year. The key factors in this decrease were: 1) principal retirement of $5,040,000 and 2) the issuance of $2,480,000 of 2019A General Obligation Bonds. Overview of the Financial Statements This discussion and analysis is intended to serve as an introduction to the City’s basic financial statements. The City’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’s finances, in a manner similar to a private-sector business. The statement of net position presents information on all of the City’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 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 that are principally supported by taxes and intergovernmental revenues (governmental activities) from other functions that are intended to recover all or a significant portion of their costs through user 17 fees and charges (business-type activities). The governmental activities of the City include general government, public safety, public works, parks and recreation, services to other cities and HRA activities. The business-type activities of the City 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 itself (known as the primary government), but also a legally separate Housing and Redevelopment Authority (HRA) for which the City of St. Anthony is financially accountable. The HRA functions for all practical purposes as a department of the City of St. Anthony, 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, 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 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 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. The City 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. 18 Proprietary funds. The City 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 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 various functions. The City uses an internal service fund to account for its compensated absences, OPEB 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. 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 8 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 17 through 24 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. Assets and deferred outflows of resources exceeded liabilities and deferred inflows of resources by $40,175,875 at the close of the most recent fiscal year. 19 City of St. Anthony, Minnesota’s Net Position Governmental Activities Business-Type Activities Totals 2019 2018 2019 2018 2019 2018 Current and other assets $18,034,604 $17,813,896 $4,207,251 $4,039,968 $22,241,855 $21,853,864 Capital assets 33,162,734 35,371,998 25,259,110 24,047,540 58,421,844 59,419,538 Total assets $51,197,338 $53,185,894 $29,466,361 $28,087,508 $80,663,699 $81,273,402 Total deferred outflows of resources $2,806,776 $4,154,761 $0 $0 $2,806,776 $4,154,761 Long term liabilities outstanding $35,346,194 $37,640,959 $929,986 $1,056,990 $36,276,180 $38,697,949 Other liabilities 1,650,866 1,467,885 440,794 367,637 2,091,660 1,835,522 Total liabilities $36,997,060 $39,108,844 $1,370,780 $1,424,627 $38,367,840 $40,533,471 Total deferred inflows of resources $4,926,760 $6,257,505 $0 $0 $4,926,760 $6,257,505 Net position: Invested in capital assets net of related debt $9,746,635 $10,422,047 $24,525,702 $23,179,624 $34,272,337 $33,601,671 Restricted 6,556,757 7,328,810 - - 6,5 56,757 7,328,810 Unrestricted (4,223,098) (5,776,551) 3,569,879 3,483,257 (653,219) (2,293,294) Total net position $12,080,294 $11,974,306 $28,095,581 $26,662,881 $40,175,875 $38,637,187 The City’s net position increased by $1,538,688 in 2019. The increase was primarily due to constructing and capitalizing assets during the current year which will be depreciated in future years. City of St. Anthony, Minnesota’s Changes in Net Position Governmental Activities Business-Type Activities Totals 2019 2018 2019 2018 2019 2018 Revenues: Program revenue: Charges for services $1,847,264 $1,602,792 $8,577,859 $8,242,070 $10,425,123 $9,844,862 Operating grants and contributions 494,389 560,924 - - 494,389 560,924 Capital grants and contributions 633,142 817,077 - 126,991 633,142 944,068 General revenue: Property taxes 7,477,523 7,128,703 - - 7,477,523 7,128,703 Tax increment taxes 2,060,375 1,870,589 - - 2,060,375 1,870,589 Grants and contributions not restricted to specific programs 561,062 559,437 - - 561,062 559,437 Other 508,302 560,822 113,180 45,336 621,482 606,158 Total revenues 13,582,057 13,100,344 8,691,039 8,414,397 22,273,096 21,514,741 Expenses: General government 1,587,360 1,234,274 - - 1,587,360 1,234,274 Public safety 4,789,232 4,886,105 - - 4,789,232 4,886,105 Public works 2,960,916 3,005,637 - - 2,9 60,916 3,005,637 Parks and recreation 536,095 488,132 - - 536,095 488,132 Housing and redevelopment 975,246 1,189,659 - - 975,246 1,189,659 Interest on long-term debt 803,042 795,625 - - 803,042 795,625 Liquor - - 5,903,275 5,617,377 5,903,275 5,617,377 Water - - 1,617,354 1,573,857 1,617,354 1 ,573,857 Sewer - - 1,253,102 1,243,591 1,253,102 1 ,243,591 Stormwater - - 308,786 249,911 308,786 249,911 Total expenses 11,651,891 11,599,432 9,082,517 8,684,736 20,734,408 20,284,168 Excess before transfers 1,930,166 1,500,912 (391,478) (270,339) 1,538,688 1,230,573 Transfers (1,824,178) (1,251,989) 1,824,178 1,251,989 - - Increase (decrease) in net position 105,988 248,923 1,432,700 981,650 1,538,688 1,230,573 Net position - January 1 11,974,306 11,725,383 26,662,881 25,681,231 38,637,187 37,406,614 Net position - December 31 $12,080,294 $11,974,306 $28,095,581 $26,662,881 $40,175,875 $38,637,187 20 Governmental Activities. Governmental activities increased the City’s net position by $105,988 compared to prior year increase of $248,923. The key elements of this change are that current year's governmental net activities costs increased by $58,457 and the current year's general revenues and transfers decreased $84,478, which yields a decreased change in net position of $142,935. 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 $1,432,700. Capital assets in the amount of $2,159,178 were transferred in from governmental activities. This was offset by a $335,000 transfer out of cash and operating losses of the three enterprise funds totaling $462,213. Financial Analysis of the City’s Funds As noted earlier, the City uses fund accounting to ensure and demonstrate compliance with finance-related legal requirements. Governmental funds. The focus of the City’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’s financing requirements. As of the end of the current fiscal year, the City’s governmental funds reported combined ending fund balances of $14,482,106 an increase of $320,506 from the prior year. The ending fund balance is classified as follows: Nonspendable $102,556 Restricted 7,176,386 Committed 102,948 Assigned 5,502,668 Unassigned 1,597,548 Total $14,482,106 The General Fund is the chief operating fund of the City. At the end of the current fiscal year, unassigned fund balance of the General Fund was $2,489,685, while total fund balance reached $2,590,790. 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 $83,026 due to increase in revenues over expenditures of $79,555. The Street Improvement Debt Service Fund decreased by $303,529 mainly due to the refunding of specific prior debt issuances and using cash held to lower new debt issued. 22 The HRA TIF Debt Service Fund decreased by $1,311 due to transferred revenue that covered only principal and interest expenditures. The HRA TIF Improvement Fund increased by $601,396, substantially due to an increase in revenues of $336,210. The Street Improvement Project Funds decreased by $21,647 due to the $1,273,143 in other financing sources being less than the revenues under expenditures of $1,294,790. The Public Utilities Infrastructure Fund decreased by $122,443 substantially due to transfers costs of $251,610 offset by investment earnings of $148,097. Non-major Special Revenue Funds decreased by $39,802 resulting in an ending balance of $127,514, substantially due to the increase in expenditures of $51,360. Non-major Debt Service Funds had a total fund balance of $1,062,034, all of which is restricted for the payment of debt service. The net decrease in fund balance during the current year in the non-major debt service funds was $18,152, substantially due to the planned use of fund balance to support the debt service associated with the Public Facilities Revenue Bonds. Non-major Capital Project Funds had a total fund balance of $1,166,913, a decrease of $142,968 from prior year, substantially due to the decrease in capital related expenditures of $922,920. Proprietary funds. The City’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 $28,333,666. The total net position for each fund was: Liquor – $2,228,821; Water and Sewer – $16,867,291; Stormwater Utility - $9,237,554. 23 General Fund Budgetary Highlights Variances from actual to budget can be briefly summarized as follows:  General property taxes were $32,893 greater than budget due to a higher percentage of current tax levy collections were received than was budgeted.  Licenses and permits were $7,758 greater than budget primarily due to higher level of construction related permit activity.  Intergovernmental revenues were $21,141 greater than budget due to higher funding levels for public safety grants.  Charges for services were less than budget by $21,687 mainly due to gasoline costs being lower by $22,947 which lowered the charges for gasoline charged to other governmental entities.  Planning and Zoning other services and charges were greater than budget by $20,867 due to increased redevelopment activity.  Other revenues were greater than budgeted by $25,586 substantially due to investment earnings being higher than budget by $26,792.  Public Works was $23,401 less than budget due to gasoline costs being $35,908 less than budget.  Police protection was $103,805 more than budget due to costs professional costs associated with data practices requests. Capital Asset and Debt Administration Capital Assets. The City’s investment in capital assets for its governmental and business-type activities as of December 31, 2019 amounts to $58,421,844 (net of accumulated depreciation). This investment in capital assets includes land, buildings and structures, improvements, machinery and equipment, park facilities, roads and infrastructure. The City’s investment in capital assets (net) decreased 2%. Major capital asset events during the current fiscal year included the following:  The 2018 street reconstruction and infrastructure improvements was completed in 2019 along with the Silver Lake Road LED street lighting project.  The 2019 Silver Lake Road fold mitigation project was completed in 2019.  The 2019 County Road C utility improvements, trail and sidewalk improvements are reflected in construction work in progress along with the preliminary cost associated with the future street, utility and stormwater improvements. 24 City of St. Anthony, Minnesota’s Capital Assets Governmental Activities Business-Type Activities Totals 2019 2018 2019 2018 2019 2018 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 - - 73,984 - Land improvements 587,187 587,187 1,038,687 1,038,687 1,625,874 1,625,874 Buildings and structures 10,133,864 10,105,047 8,467,897 8,467,897 18,601,761 18,572,944 Furniture and fixtures 4,576,847 4,761,555 4,853,924 4,841,674 9,430,771 9,603,229 Software intangibles 23,303 23,303 26,022 26,022 49,325 49,325 Infrastructure/streets 41,336,141 39,489,582 17,043,752 14,896,823 58,379,893 54,386,405 Storm sewers 428,469 428,469 - - 428,469 428,469 Storm water - - 2,253,147 2,253,147 2,25 3,147 2,253,147 Less accumulated depreciation (26,400,210) (24,526,759) (10,514,273) (9,566,664) (36,914,483) (34,093,423) Construction in progress 740,266 2,766,747 - - 740,266 2,766,747 Total $33,162,734 $35,371,998 $25,259,110 $24,047,540 $58,421,844 $59,345,554 Additional information on the City’s capital assets can be found in Note 5. Long-term debt. At the end of the current fiscal year, the City had total bonded debt outstanding of $29,170,000. Of this amount, $20,365,000 comprises debt backed by special assessments and the full faith and credit of the City, $6,240,000 is backed by tax increments, $1,850,000 is backed by lease revenue sources, and $715,000 is backed by revenues sources from the City’s water/sewer funds. In addition, the City’s debt represents the liability for compensated absences $901,184, net pension liability of $4,446,367, and OPEB liability of $846,113. City of St. Anthony, Minnesota’s Outstanding Debt General Obligation and Revenue Bonds Governmental Activities Business-Type Activities Totals 2019 2018 2019 2018 2019 2018 General obligation bonds $20,365,000 $22,040,000 $ - $ - $20,365,000 $22,040,000 G.O. revenue bonds 1,850,000 2,185,000 715,000 845,000 2,565,000 3,030,000 G.O. tax increment bonds 6,240,000 6,660,000 - - 6,240,000 6,660,000 Issuance premiums (discounts) 894,108 794,649 18,408 22,916 912,516 817,565 Total $29,349,108 $31,679,649 $733,408 $867,916 30,082,516 $32,547,565 The City’s total bonded debt decreased by $2,560,000 (8%) during the current fiscal year. The key factors in this decrease were: 1) principal retirement of $5,040,000 and 2) the issuance of $2,480,000 of 2019A General Obligation Bonds. The City 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 is $30,710,616, which is in excess of the City’s applicable debt. Additional information on the City’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 the City 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’s budget for the 2020 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, 2019 With Comparative Totals For December 31, 2018 Governmental Business-Type Activities Activities 2019 2018 Assets: Cash and investments $14,456,772 $2,624,996 $17,081,768 $17,061,902 Accrued interest 35,124 - 35,124 41,672 Due from other governmental units 717,149 - 717,149 332,142 Accounts receivable - net 93,817 672,895 766,712 643,433 Internal balances 238,085 (238,085) - - Property taxes receivable 177,350 - 177,350 192,211 Prepaid items 97,730 19,323 117,053 249,058 Inventories - at cost 4,826 1,128,122 1,132,948 1,213,985 Loans receivable 21,493 - 21,493 32,674 Special assessments receivable 1,561,374 - 1,561,374 1,911,754 Land held for resale 370,356 - 370,356 - Capital assets - net: Nondepreciable 2,477,133 2,089,954 4,567,087 6,593,568 Depreciable 30,685,601 23,169,156 53,854,757 52,825,970 Net pension asset 260,528 - 260,528 175,033 Total assets 51,197,338 29,466,361 80,663,699 81,273,402 Deferred outflows of resources: Related to other post employment benefits 28,051 - 28,051 30,066 Related to pensions 2,778,725 - 2,778,725 4,124,695 Total deferred outflows of resources 2,806,776 0 2,806,776 4,154,761 Liabilities: Accounts payable 534,781 269,500 804,281 540,936 Due to other governmental units 86,501 68,772 155,273 169,231 Salaries payable 105,611 38,828 144,439 116,676 Contracts payable 527,331 - 527,331 573,031 Deposits payable 5,715 57,735 63,450 69,198 Accrued interest payable 390,927 5,959 396,886 366,450 Other post employment benefits: Due within one year 11,075 - 11,075 - Due in more than one year 835,038 - 835,038 803,931 Long-term liabilities: Due within one year 3,130,801 199,391 3,330,192 3,445,849 Due in more than one year 26,922,913 730,595 27,653,508 29,948,384 Net pension liability: Due in more than one year 4,446,367 - 4,446,367 4,499,785 Total liabilities 36,997,060 1,370,780 38,367,840 40,533,471 Deferred inflows of resources: Related to other post employment benefits 39,170 - 39,170 - Related to pensions 4,887,590 - 4,887,590 6,257,505 Total deferred inflows of resources 4,926,760 - 4,926,760 6,257,505 Net position: Net investments in capital assets 9,746,635 24,525,702 34,272,337 33,601,671 Restricted for: Debt service 6,339,750 - 6,339,750 7,097,594 Pensions 177,502 - 177,502 200,075 Public safety 39,505 - 39,505 31,141 Unrestricted (4,223,098) 3,569,879 (653,219) (2,293,294) Total net position $12,080,294 $28,095,581 $40,175,875 $38,637,187 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, 2019 With Comparative Totals For The Year Ended December 31, 2018 Program Revenues Charges For Functions/Programs Expenses Services Primary government: Governmental activities: General government $1,587,360 $419,857 Public safety 4,789,232 812,086 Public works 2,960,916 389,964 Parks and recreation 536,095 224,500 Housing and redevelopment 975,246 857 Interest on long-term debt 803,042 - Total governmental activities 11,651,891 1,847,264 Business-type activities: Liquor 5,903,275 6,160,868 Water/water plant 1,617,354 999,082 Sewer 1,253,102 1,211,209 Stormwater 308,786 206,700 Total business-type activities 9,082,517 8,577,859 Total primary government $20,734,408 $10,425,123 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 2019 2018 $22,782 $ - ($1,144,721) $ - ($1,144,721) ($817,174) 369,998 - (3,607,148) - (3,607,148) (3,713,970) 100,494 633,142 (1,837,316) - (1,837,316) (1,842,991) 1,115 - (310,480) - (310,480) (259,220) - - (974,389) - (974,389) (1,189,659) - - (803,042) - (803,042)(795,625) 494,389 633,142 (8,677,096) 0 (8,677,096) (8,618,639) - - - 257,593 257,593 250,075 - - - (618,272) (618,272)(563,135) - - - (41,893) (41,893) (81,424) - - - (102,086) (102,086)78,809 0 0 0 (504,658) (504,658) (315,675) $494,389 $633,142 (8,677,096) (504,658) (9,181,754) (8,934,314) General revenues: General property taxes 7,477,523 - 7,477,523 7,128,703 Tax increment taxes 2,060,375 - 2,060,375 1,870,589 Grants and contributions not restricted to specific programs 561,062 - 561,062 559,437 Unrestricted investment earnings 492,834 83,886 576,720 319,290 Gain on sale of capital assets - - - 48,529 Other 15,468 29,294 44,762 238,339 Transfers (1,824,178) 1,824,178 - - Total general revenues and transfers 8,783,084 1,937,358 10,720,442 10,164,887 Change in net position 105,988 1,432,700 1,538,688 1,230,573 Net position - January 1 11,974,306 26,662,881 38,637,187 37,406,614 Net position - December 31 $12,080,294 $28,095,581 $40,175,875 $38,637,187 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, 2019 With Comparative Totals For December 31, 2018 General Fund Street Improvement Debt Service Fund HRA TIF Debt Service Assets Cash and investments $2,408,813 $4,097,831 $6,226 Accrued interest 35,124 - - Due from other governmental units 40,585 - - Accounts receivable - net 59,193 - - Interfund receivable 128,593 - - Interfund loan receivable - - - Property taxes receivable: Delinquent 27,911 11,909 - Due from county 29,811 9,699 - Prepaid items 96,279 - - Inventories - at cost 4,826 - - Loans receivable - - - Special assessments receivable 4,561 1,548,879 - Land held for resale - - - Total assets $2,835,696 $5,668,318 $6,226 Liabilities, Deferred Inflows of Resources, and Fund Balance Liabilities: Accounts payable $83,586 $ - $ - Due to other governmental units 23,703 - - Salaries payable 102,687 - - Contracts payable - - - Deposits payable 2,458 3,257 - Interfund payable - - - Interfund loan payable - - - Total liabilities 212,434 3,257 0 Deferred inflows of resources: Unavailable revenue 32,472 1,491,957 - Fund balance (deficit): Nonspendable 101,105 - - Restricted - 4,173,104 6,226 Committed - - - Assigned - - - Unassigned 2,489,685 - - Total fund balance (deficit)2,590,790 4,173,104 6,226 Total liabilities, deferred inflows of resources, and fund balance (deficit)$2,835,696 $5,668,318 $6,226 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 2019 2018 $2,062,763 $178,983 $2,901,806 $2,559,657 $ - $14,216,079 $14,531,791 - - - - - 35,124 41,672 - 671,458 2,470 2,636 - 717,149 320,710 8,050 775 - 25,799 - 93,817 41,786 - - - - (128,593) - - - - 987,426 - (987,426) - - 12,706 - - 8,184 - 60,710 101,472 72,264 - - 4,866 - 116,640 90,154 204 - - 1,247 - 97,730 220,011 - - - - - 4,826 3,980 - - - 21,493 - 21,493 32,674 - - - 7,934 - 1,561,374 1,888,670 370,356 - - - - 370,356 - $2,526,343 $851,216 $3,891,702 $2,631,816 ($1,116,019) $17,295,298 $17,272,920 $369,995 $45,542 $4,608 $31,050 $ - $534,781 $417,813 - - - 62,798 - 86,501 24,529 - - - 2,924 - 105,611 83,811 6,987 447,430 67,142 5,772 - 527,331 573,031 - - - - - 5,715 9,293 - - - 128,593 (128,593) - - 959,326 - - 28,100 (987,426) - - 1,336,308 492,972 71,750 259,237 (1,116,019) 1,259,939 1,108,477 12,706 - - 16,118 - 1,553,253 2,002,843 204 - - 1,247 - 102,556 223,991 1,895,517 - - 1,101,539 - 7,176,386 7,466,883 - - - 102,948 - 102,948 124,214 - 358,244 3,819,952 1,324,472 - 5,502,668 5,458,103 (718,392) - - (173,745) - 1,597,548 888,409 1,177,329 358,244 3,819,952 2,356,461 0 14,482,106 14,161,600 $2,526,343 $851,216 $3,891,702 $2,631,816 ($1,116,019) $17,295,298 $17,272,920 Fund balance reported above $14,482,106 $14,161,600 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.33,162,734 35,371,998 Other long-term assets are not available to pay for current-period expenditures and, therefore, are reported as unavailable in the funds.1,553,253 2,002,843 Net pension asset related to the Saint Anthony Fire Department Relief Association. 260,528 175,033 Deferred outflows of resources related to the Saint Anthony Fire Department Relief Association.28,364 78,816 Deferred inflows of resources related to the Saint Anthony Fire Department Relief Association.(111,390)(53,774) Long-term liabilities, including bonds payable, are not due and payable in the current period and therefore are not reported in the funds.(29,740,035) (32,039,057) 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.(7,555,266)(7,723,153) Net position of governmental activities $12,080,294 $11,974,306 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, 2019 With Comparative Totals For The Year Ended December 31, 2018 General Fund Street Improvement Debt Service Fund HRA TIF Debt Service Revenues: General property taxes $4,546,353 $1,883,542 $ - Tax increment collections - - - Licenses, fees and permits 268,565 - - Intergovernmental 993,688 57,114 - Special assessments 1,685 455,394 - Charges for services 1,021,578 - - Cable franchise fees 97,200 - - Fines and forfeits 85,087 - - Investment income 58,472 89,861 - Contributions and donations 500 - - Refunds and reimbursements 9,752 - - Miscellaneous 14,362 - - Total revenues 7,097,242 2,485,911 0 Expenditures: Current: General government 1,065,208 - - Public safety 4,688,261 - - Public works 991,401 10,090 - Parks and recreation 268,319 - - Nondepartmental 78,233 - - Housing and redevelopment - - - Capital outlay: General government - - - Public safety - - - Public works - - - Parks and recreation - - - Debt service: Principal - 3,925,000 420,000 Interest - 537,405 173,987 Paying agent fees - 8,978 1,312 Issuance costs - 38,240 - Construction/acquisition costs - - - Developer incentives - - - Total expenditures 7,091,422 4,519,713 595,299 Revenues over (under) expenditures 5,820 (2,033,802)(595,299) Other financing sources (uses): Bonds issued - 20,908 - Refunding bonds issued - 1,335,000 - Premium on bonds issued - 136,865 - Sale of capital assets - - - Transfers in 258,200 237,500 593,988 Transfers out (180,994) - - Total other financing sources (uses)77,206 1,730,273 593,988 Net change in fund balance 83,026 (303,529)(1,311) Fund balance - January 1 2,507,764 4,476,633 7,537 Fund balance - December 31 $2,590,790 $4,173,104 $6,226 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 2019 2018 $ - $ - $ - $1,055,067 $ - $7,484,962 $7,107,947 2,093,697 - - - - 2,093,697 1,861,251 - - - - - 268,565 295,955 - 521,601 2,470 20,482 - 1,595,355 1,136,456 - - - 6,177 - 463,256 658,532 - - - 131,807 - 1,153,385 1,097,940 - - - - - 97,200 101,612 - - - 11,205 - 96,292 85,538 106,400 15,986 148,097 67,017 - 485,833 284,452 - - - 1,050 - 1,550 16,046 69,327 128,452 - 24,291 - 231,822 173,537 - 6,751 - 304 - 21,417 43,534 2,269,424 672,790 150,567 1,317,400 0 13,993,334 12,862,800 124,713 - - 137,682 - 1,327,603 1,048,214 - - - 10,434 - 4,698,695 4,861,358 - - 8,880 60,700 - 1,071,071 1,211,055 - - - 206,111 - 474,430 431,091 - - - - - 78,233 61,262 7,998 - - 161,012 - 169,010 160,255 - - - - - - 102,507 - - - - - - 603,056 - - 12,250 124,514 - 136,764 321,149 - - - 28,817 - 28,817 10,705 - - - 565,000 - 4,910,000 2,895,000 93,150 - - 93,438 - 897,980 887,798 - - - 1,532 - 11,822 8,298 - 33,142 - - - 71,382 63,573 35,588 1,934,438 270 - - 1,970,296 2,720,619 804,391 - - - - 804,391 1,029,217 1,065,840 1,967,580 21,400 1,389,240 0 16,650,494 16,415,157 1,203,584 (1,294,790)129,167 (71,840)0 (2,657,160) (3,552,357) - 1,124,092 - - - 1,145,000 2,610,000 - - - - - 1,335,000 - - 89,051 - - - 225,916 92,831 - - - 23,050 - 23,050 64,754 - 60,000 - 592,233 (1,406,921)335,000 287,094 (602,188) - (251,610)(458,429) 1,406,921 (86,300) - (602,188) 1,273,143 (251,610)156,854 0 2,977,666 3,054,679 601,396 (21,647)(122,443)85,014 0 320,506 (497,678) 575,933 379,891 3,942,395 2,271,447 - 14,161,600 14,659,278 $1,177,329 $358,244 $3,819,952 $2,356,461 $0 $14,482,106 $14,161,600 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, 2019 With Comparative Amounts For The Year Ended December 31, 2018 2019 2018 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)$320,506 ($497,678) 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.4,767 1,698,333 Transfer out of governmental capital assets contributed to Enterprise Funds.(2,159,178) (1,522,678) 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.(54,853) (7,522) Revenues in the statement of activities that do not provide current financial resources are not reported as revenues in the funds.(449,590) 120,037 The issuance of long-term debt (e.g. bonds, leases) provides current financial resources to governmental funds, while the repayment of the principal of long-term debt consumes the current financial resources of governmental funds. Neither transaction, however, has any effect on net position. This amount is the net effect of these differences in the treatment of long-term debt and related items.2,204,084 192,169 Some expenses reported in the statement of activities do not require the use of current financial resources and, therefore, are not reported as expenditures in governmental funds.94,938 92,173 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.167,887 193,575 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 differed from pension contributions: Pension contributions $60,716 Pension expense (83,289) (22,573) (19,486) Change in net position of governmental activities (statement 2)$105,988 $248,923 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, 2019 With Comparative Totals For Enterprise Funds For December 31, 2018 Governmental Activities Water/Sewer/ Stormwater Internal Liquor Water Plant Utility Service Fund Assets:2019 2018 Current assets: Cash and cash equivalents $774,316 $1,661,977 $188,703 $2,624,996 $2,370,867 $240,693 Accounts receivable - net 4,529 668,366 - 672,895 624,731 - Due from other governmental units - - - - 12,017 - Prepaid items 6,204 13,119 - 19,323 29,047 - Inventories - at cost 868,671 259,451 - 1,128,122 1,210,005 - Total current assets 1,653,720 2,602,913 188,703 4,445,336 4,246,667 240,693 Noncurrent assets: Capital assets: Land - 5,653 2,084,301 2,089,954 2,089,954 - Land improvements - - 1,038,687 1,038,687 1,038,687 - Buildings and structures 1,880,793 6,587,104 - 8,467,897 8,467,897 - Furniture, fixtures and equipment 441,685 4,412,239 - 4,853,924 4,841,674 - Distribution and collection system - 12,124,500 7,172,399 19,296,899 17,149,971 - Software intangibles 26,022 - - 26,022 26,022 - Total capital assets 2,348,500 23,129,496 10,295,387 35,773,383 33,614,205 0 Less: Allowance for depreciation (1,385,648) (7,888,215) (1,240,410) (10,514,273) (9,566,665) - Net capital assets 962,852 15,241,281 9,054,977 25,259,110 24,047,5400 Total assets 2,616,572 17,844,194 9,243,680 29,704,446 28,294,207 240,693 Deferred outflows of resources: Related to OPEB - - - - - 28,051 Related to pensions - - - - - 2,750,361 Total deferred outflows of resources - - - - - 2,778,412 Liabilities: Current liabilities: Accounts payable 234,215 29,159 6,126 269,500 123,123 - Due to other governmental units 65,847 2,925 - 68,772 144,702 - Salaries payable 19,732 19,096 - 38,828 32,865 - Accrued interest payable - 5,959 - 5,959 7,042 - Refundable deposits - 57,735 - 57,735 59,905 - Compensated absences payable - current 22,260 42,131 - 64,391 61,602 230,801 Bonds and notes payable - current - 135,000 - 135,000 130,000 - Other post employment benefits liability - current - - - - - 11,075 Total current liabilities 342,054 292,005 6,126 640,185 559,239 241,876 Noncurrent liabilities: Compensated absences payable - noncurrent 45,697 86,490 - 132,187 127,472 473,805 Bonds and notes payable - noncurrent - 598,408 - 598,408 737,916 - Other post employment benefits liability - noncurrent - - - - - 835,038 Net pension liability - - - - - 4,446,367 Total noncurrent liabilities 45,697 684,898 0 730,595 865,388 5,755,210 Total liabilities 387,751 976,903 6,126 1,370,780 1,424,627 5,997,086 Deferred inflows of resources: Related to OPEB - - - - - 39,170 Related to pensions - - - - - 4,776,200 Total deferred inflows of resources - - - - - 4,815,370 Net position: Net investments in capital assets 962,852 14,507,873 9,054,977 24,525,702 23,179,624 - Unrestricted 1,265,969 2,359,418 182,577 3,807,964 3,689,956 (7,793,351) Total net position $2,228,821 $16,867,291 $9,237,554 $28,333,666 $26,869,580 ($7,793,351) Net position reported above $28,333,666 $26,869,580 Adjustment to report the cumulative internal balance for the net effect of activity between the internal service fund and the enterprise funds over time.(238,085)(206,699) Net position of business-type activities (Statement 1)$28,095,581 $26,662,881 Totals Business-Type Activities Enterprise Funds The accompanying notes are an integral part of these financial statements. 37 CITY OF ST. ANTHONY, MINNESOTA STATEMENT OF REVENUES, EXPENSES AND Statement 7 CHANGES IN FUND NET POSITION PROPRIETARY FUNDS For The Year Ended December 31, 2019 With Comparative Totals For Enterprise Funds For The Year Ended December 31, 2018 Governmental Activities Water/Sewer/ Stormwater Internal Liquor Water Plant Utility Service Fund 2019 2018 Sales $6,160,868 $ - $ - $6,160,868 $5,867,452 $ - Cost of sales (4,614,845) - - (4,614,845) (4,344,764) - Gross profit 1,546,023 0 0 1,546,023 1,522,688 0 Operating revenues: Customer billings - 2,206,841 206,700 2,413,541 2,323,418 - Connection charges - 3,450 - 3,450 51,200 - Charges for services - - - - - 620,361 Total operating revenues 0 2,210,291 206,700 2,416,991 2,374,618 620,361 Total gross profit and operating revenues 1,546,023 2,210,291 206,700 3,963,014 3,897,306 620,361 Operating expenses: Personal services 817,908 912,811 - 1,730,719 1,698,471 614,422 Supplies 318,173 250,368 44 568,585 580,783 - Contracted services 56,315 137,828 43,053 237,196 245,677 - Treatment charges (MCES) - 733,670 - 733,670 708,567 - Other 8,796 196,127 2,525 207,448 216,378 - Depreciation 71,110 613,335 263,164 947,609 862,940 - Total operating expenses 1,272,302 2,844,139 308,786 4,425,227 4,312,816 614,422 Operating income (loss)273,721 (633,848) (102,086) (462,213) (415,510) 5,939 Nonoperating revenues (expenses): Investment income 20,757 56,952 6,177 83,886 32,771 7,001 Intergovernmental revenue - - - - - 37,261 Interest expense - (11,059) - (11,059) (13,687) - Miscellaneous (172) 29,466 - 29,294 12,565 - Total nonoperating revenues (expenses)20,585 75,359 6,177 102,121 31,649 44,262 Income (loss) before contributions and transfers 294,306 (558,489) (95,909) (360,092) (383,861) 50,201 Contributions and transfers: Capital contributions - 756,666 1,402,512 2,159,178 1,522,678 - Capital contributions - intergovernmental - - - - 126,991 - Transfers in - - - - 102,705 86,300 Transfers out (250,000) - (85,000) (335,000) (373,394) - Total contributions and transfers (250,000) 756,666 1,317,512 1,824,178 1,378,980 86,300 Change in net position 44,306 198,177 1,221,603 1,464,086 995,119 136,501 Net position - January 1 2,184,515 16,669,114 8,015,951 26,869,580 25,874,461 (7,929,852) Net position - December 31 $2,228,821 $16,867,291 $9,237,554 $28,333,666 $26,869,580 ($7,793,351) Change in net position reported for business-type activities above $1,464,086 $995,119 Transfer in of capital assets from governmental activities 2,159,178 1,522,678 Portion of contribution revenue reported above (2,159,178) (1,522,678) Adjustment for the net effect of the current year activity between the internal service fund and the enterprise funds.(31,386) (13,469) Change in net position of business-type activities (Statement 2)$1,432,700 $981,650 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, 2019 With Comparative Totals For Enterprise Funds For The Year Ended December 31, 2018 Governmental Activities Water/Sewer/ Stormwater Internal Liquor Water Plant Utility Service Fund 2019 2018 Cash flows from operating activities: Receipts from customers and users $6,164,479 $2,099,196 $218,132 $8,481,807 $8,217,103 $ - Receipts from interfund charges for pension benefits - - - - - 620,361 Payment to suppliers (4,814,945) (1,278,754) (48,256) (6,141,955) (6,164,693) Payment to employees (815,345) (901,907) - (1,717,252) (1,687,586) (632,213) Miscellaneous revenue (172) 29,466 - 29,294 12,799 - Net cash flows provided by (used in) operating activities 534,017 (51,999) 169,876 651,894 377,623 (11,852) Cash flows from noncapital financing activities: Transfer from General Fund - - - - - 86,300 Transfer to General Fund (250,000) - - (250,000) (250,000) - Transfer to Debt Service Funds - - (85,000) (85,000) (123,394) - Net cash flows provided by (used in) noncapital financing activities (250,000)0 (85,000) (335,000) (373,394) 86,300 Cash flows from capital and related financing activities: Intergovernmental revenue - capital - - - - 126,991 - Acquisition of capital assets - - - - (203,642) - Principal paid on debt - (130,000) - (130,000) (130,000) - Interest paid on debt - (16,651) - (16,651) (19,274) - Net cash flows provided by (used in) capital and related financing activities 0 (146,651)0 (146,651) (225,925)0 Cash flows from investing activities: Investment income 20,757 56,952 6,177 83,886 32,771 7,001 Net increase (decrease) in cash and cash equivalents 304,774 (141,698) 91,053 254,129 (188,925) 81,449 Cash and cash equivalents - January 1 469,542 1,803,675 97,650 2,370,867 2,559,792 159,244 Cash and cash equivalents - December 31 $774,316 $1,661,977 $188,703 $2,624,996 $2,370,867 $240,693 Reconciliation of operating income (loss) to net cash provided (used) by operating activities: Operating income (loss) $273,721 ($633,848) ($102,086) ($462,213) ($415,510) $5,939 Adjustments to reconcile operating income (loss) to net cash flows from operating activities: Miscellaneous revenue (172) 29,466 - 29,294 12,565 - Depreciation 71,110 613,335 263,164 947,609 862,940 - Changes in assets and liabilities: Decrease (increase) in receivables 3,611 (51,190) 11,432 (36,147) (24,733) - Decrease (increase) in prepaid items 6,088 3,636 - 9,724 (542) - Decrease (increase) in inventory 28,823 53,060 - 81,883 97,373 - Decrease (increase) in deferred outflows of resources - - - - - 1,297,533 Increase (decrease) in payables 150,836 (66,458) (2,634) 81,744 (154,470) 47,012 Increase (decrease) in OPEB liability - - - - - 42,182 Increase (decrease) in net pension liability - - - - - (16,157) Increase (decrease) in deferred inflows of resources - - - - - (1,388,361) Total adjustments 260,296 581,849 271,962 1,114,107 793,133 (17,791) Net cash provided by operating activities $534,017 ($51,999) $169,876 $651,894 $377,623 ($11,852) Noncash investing, capital and financing activities: Assets in the amount of $18,060 and $0 were contributed to the Liquor Fund in 2018 and 2019, respectively. Assets in the amount of $1,224,256 and $756,666 were contributed to the Water/Sewer/Water Plant Fund in 2018 and 2019, respectively. Assets in the amount of $280,362 and $1,402,512 were contributed to the Stormwater Utility Fund in 2018 and 2019, respectively. Totals Business-Type Activities Enterprise Funds The accompanying notes are an integral part of these financial statements. 39 - This page intentionally left blank - 40 CITY OF ST. ANTHONY, MINNESOTA NOTES TO FINANCIAL STATEMENTS December 31, 2019 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, 2019 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. 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. 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. 42 CITY OF ST. ANTHONY, MINNESOTA NOTES TO FINANCIAL STATEMENTS December 31, 2019 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 type: 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. 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. 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. 43 CITY OF ST. ANTHONY, MINNESOTA NOTES TO FINANCIAL STATEMENTS December 31, 2019 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, 2019 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 $84,835 $86,067 $1,232 Elections 24,400 34,113 9,713 Planning and zoning 74,729 95,596 20,867 General government buildings 117,463 126,138 8,675 Police protection 3,294,649 3,398,454 103,805 Equipment maintenance 392,642 398,754 6,112 Tree and weed care 47,526 48,527 1,001 Park maintenance 212,391 216,143 3,752 Nondepartmental 52,500 78,233 25,733 Nonmajor Funds: Special Revenue Funds: Community Center fund 143,323 181,159 37,836 Recycling fund 24,619 25,386 767 HRA fund 152,576 161,012 8,436 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. 45 CITY OF ST. ANTHONY, MINNESOTA NOTES TO FINANCIAL STATEMENTS December 31, 2019 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, 2019 are planned to be eliminated in 2020. 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 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) are classified as due from county. Taxes not collected by the county by December 31 are classified as delinquent 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. 46 CITY OF ST. ANTHONY, MINNESOTA NOTES TO FINANCIAL STATEMENTS December 31, 2019 Once a special assessment roll is adopted, the amount attributed to each parcel is a lien upon that property until full payment is made or the amount is determined to be excessive by the City Council or court action. If special assessments are allowed to go delinquent, the property is subject to tax forfeit sale. Proceeds of sales from tax forfeit properties are allocated first to the county’s costs of administering all tax forfeit properties. Pursuant to state statutes, a property shall be subject to a tax forfeit sale after three years unless it is homesteaded, agricultural or seasonal recreational land in which event the property is subject to such sale after five years. GOVERNMENT-WIDE FINANCIAL STATEMENTS The City recognizes special assessment revenue in the period that the assessment roll was adopted by the City Council. Uncollectible special assessments are not material and have not been reported. GOVERNMENTAL FUND FINANCIAL STATEMENTS Revenue from special assessments is recognized by the City when it becomes measurable and available to finance expenditures of the current fiscal period. In practice, current and delinquent special assessments received by the City are recognized as revenue for the current year. Special assessments that are collected by the County by December 31 (remitted to the City the following January) are also recognized as revenue for the current year. All remaining delinquent, deferred and special deferred assessments receivable in governmental funds are completely offset by deferred inflow of resources. J. INVENTORIES For 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. 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 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. 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, 2019 Property, plant and equipment 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. 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 48 CITY OF ST. ANTHONY, MINNESOTA NOTES TO FINANCIAL STATEMENTS December 31, 2019 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. Also see Note 17 to the financial statements. 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, 2018, from which the summarized information was derived. T. DEFERRED OUTFLOWS/INFLOWS OF RESOURCES In addition to assets, the statement of financial position reports a separate section for deferred outflows of resources. This separate financial statement element represents a consumption of net position that applies to future periods and so will not be recognized as an outflow of resources (expense/ expenditure) until then. The City has two items that qualify for reporting in this category. They are the pension related deferred outflows of resources and the OPEB related deferred outflows of 49 CITY OF ST. ANTHONY, MINNESOTA NOTES TO FINANCIAL STATEMENTS December 31, 2019 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 reports a separate section for deferred inflows of resources. This separate financial statement element represents an acquisition of net position that applies to future periods and so will not be recognized as an inflow of resources (revenue) until that time. The government has pension and OPEB 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 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 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, 2019 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 ($29,740,035) difference are as follows: Bonds payable ($28,455,000) Accrued interest payable (390,927) Unamortized bond premium (894,108) Net adjustment to reduce fund balance - total governmental funds to arrive at net position - governmental activities.($29,740,035) 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 $4,767 difference are as follows: Capital outlay $165,581 Construction/acquisition costs 1,970,296 Current expenditures capitalized 18,160 Depreciation expense (2,149,270) Net adjustment to increase net changes in fund balances - total governmental funds to arrive at changes in net position of governmental activities.$4,767 51 CITY OF ST. ANTHONY, MINNESOTA NOTES TO FINANCIAL STATEMENTS December 31, 2019 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 ($449,590) difference are as follows: Unavailable revenue - general property taxes: At December 31, 2018 ($55,444) At December 31, 2019 48,003 Unavailable revenue - tax increment taxes: At December 31, 2018 (46,028) At December 31, 2019 12,706 Unavailable revenue - special assessments: At December 31, 2018 (1,876,371) At December 31, 2019 1,492,544 Unavailable revenue - intergovernmental: At December 31, 2018 (25,000) At December 31, 2019 - Net adjustments to increase net changes in fund balances - total governmental funds to arrive at changes in net position of governmental activities. ($449,590) Another element of that reconciliation states that “the issuance of long-term debt (e.g. bonds, leases) provides current financial resources to governmental funds, while the repayment of principal of the long-term debt consumes the current financial resources of governmental funds. Neither transaction, however, has any effect on net position.” The details of this $2,204,084 difference are as follows: Debt issued or incurred: Issuance of general obligation bonds ($2,480,000) Premium on issued bonds (225,916) Principal repayments 4,910,000 Net adjustment to increase net changes in fund balances - total governmental funds to arrive at changes in net position of governmental activities.$2,204,084 52 CITY OF ST. ANTHONY, MINNESOTA NOTES TO FINANCIAL STATEMENTS December 31, 2019 Another element of that reconciliation states that “some expenses reported in the statement of activities do not require the use of current financial resources and, therefore, are not reported as expenditures in governmental funds”. The details of this $94,938 difference are as follows: Change in accrued interest payable ($31,519) Amortization of bond premium 126,457 Net adjustment to increase net changes in fund balances - total governmental funds to arrive at changes in net position of governmental activities.$94,938 Note 2 DEPOSITS AND INVESTMENTS A. DEPOSITS In accordance with Minnesota Statutes, the City maintains deposits at those depository banks authorized by the City Council, all of which are members of the Federal Reserve System. Minnesota Statutes require that all City deposits be protected by insurance, surety bond, or collateral. The market value of collateral pledged must equal 110% of the deposits not covered by insurance or bonds. Minnesota Statutes require that securities pledged as collateral be held in safekeeping by the City Treasurer or in a financial institution other than that furnishing the collateral. Authorized collateral includes the following: a) United States government treasury bills, treasury note and treasury bonds; b) Issues of United States government agencies and instrumentalities as quoted by a recognized industry quotation service available to the government entity; c) General obligation securities of any state or local government with taxing powers which is rated “A” or better by a national bond rating service, or revenue obligation securities of any state or local government with taxing powers which is rated “AA” or better by a national bond rating service; d) General obligation securities of a local government with taxing powers may be pledged as collateral against funds deposited by that same local government entity; e) Irrevocable standby letters of credit issued by Federal Home Loan Banks to a municipality accompanied by written evidence that the bank’s public debt is rated “AA” or better by Moody’s Investors Service, Inc. or Standard & Poor’s Corporation; and f) Time deposits that are fully insured by any Federal agency. Custodial Credit Risk – Deposits: Custodial credit risk is the risk that in the event of a bank failure, the City’s deposits may not be returned to it. State statutes require that insurance, surety bonds or collateral protect all City deposits. The market value of collateral pledged must equal 110% of deposits not covered by insurance or bonds. As of December 31, 2019, the bank balance of the City’s deposits was covered by federal depository insurance. 53 CITY OF ST. ANTHONY, MINNESOTA NOTES TO FINANCIAL STATEMENTS December 31, 2019 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. As of December 31, 2019, the City had the following investments and maturities: Fair Less Investment Type Rating Value Than 1 1-5 6-10 Federal National Meeting Association AAA $249,950 $ - $249,950 $ - Money market funds Not rated 1,129,763 1,129,763 - - External investment pool - 4M Fund Not rated 5,722,182 5,722,182 - - External investment pool - 4M Plus Fund Not rated 255,878 255,878 - - Municipal Securities AA - AAA 481,994 125,654 356,340 - Brokered Certificates of Deposit Not rated 8,870,287 3,009,204 5,471,043 390,040 Total $16,710,054 $10,242,681 $6,077,333 $390,040 Total investments $16,710,054 Total deposits 366,414 Petty cash 5,300 Total cash and investments $17,081,768 Investment Maturities (in Years) 54 CITY OF ST. ANTHONY, MINNESOTA NOTES TO FINANCIAL STATEMENTS December 31, 2019 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, 2019: Investment Type 12/31/19 Level 1 Level 2 Level 3 Investments at fair value: Brokered Certificates of Deposit $8,870,287 $ - $8,870,287 $ - Municipal Securities 481,994 - 481,994 - Federal National Mortgage Association 249,950 - 249,950 Total/Subtotal 9,602,231 $0 $9,602,231 $0 Investments not categorized: External investment pool - 4M, 4M Plus 5,978,060 Money market funds 1,129,763 Total $16,710,054 Fair Value Measurement Using The City’s external investment pool investment is with the 4M fund which is regulated by Minnesota Statutes and the Board of Directors of the League of Minnesota Cities. The 4M fund is an unrated pool and the fair value of the position in the pool is the same as the value of pool shares. The pool is managed to maintain a portfolio weighted average maturity of no greater than 60 days and seeks to maintain a constant net asset value (NAV) per share of $1. The pool measures its investments at amortized cost in accordance with Government Accounting Standards Board Statement No. 79. The 4M Liquid Asset Fund has no redemption requirements. The 4M Plus Fund requires funds to be deposited for a minimum of 14 calendar days. Withdrawals prior to the 14-day restriction period are subject to a penalty equal to 7 days interest on the amount withdrawn. 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 55 CITY OF ST. ANTHONY, MINNESOTA NOTES TO FINANCIAL STATEMENTS December 31, 2019 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. Note 3 RECEIVABLES Significant receivables balances not expected to be collected within one year of December 31, 2019 are as follows: Street Improvement HRA TIF Nonmajor General Debt Service Improvements Funds Total Special assessments receivable $ - $1,317,100 $ - $6,400 $1,323,500 Delinquent property taxes 9,500 4,300 - 3,000 16,800 Delinquent tax increment - - 9,800 - 9,800 $9,500 $1,321,400 $9,800 $9,400 $1,350,100 Major Funds Note 4 UNAVAILABLE REVENUES Governmental funds report deferred inflows of resources in connection with receivables for revenues that are not considered to be available to liquidate liabilities of the current period. At the end of the current fiscal year, the various components of unavailable revenue reported in the governmental funds were as follows: Property Taxes Special Assessments TIF Total Major Fund: General Fund $27,910 $4,562 $ - $32,472 Street Improvement Debt Service 11,909 1,480,048 - 1,491,957 HRA TIF Improvements - - 12,706 12,706 Nonmajor Funds 8,184 7,934 - 16,118 Total unavailale revenue $48,003 $1,492,544 $12,706 $1,553,253 56 CITY OF ST. ANTHONY, MINNESOTA NOTES TO FINANCIAL STATEMENTS December 31, 2019 Note 5 CAPITAL ASSETS Capital asset activity for the year ended December 31, 2019 was as follows: Beginning Ending 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 2,766,747 1,993,410 (4,019,891) 740,266 Total capital assets, not being depreciated 4,503,614 1,993,410 (4,019,891) 2,477,133 Capital assets, being depreciated: Buildings and improvements 10,105,047 28,817 - 10,133 ,864 Land improvements 587,187 - - 587,187 Furniture, fixtures and equipment 4,761,555 145,964 (330,672) 4,576,847 Streets 39,489,582 1,846,559 - 41,336,141 Storm sewers 428,469 - - 428,469 Intangible assets 23,303 - - 23,303 Total capital assets, being depreciated 55,395,143 2,021,340 (330,672) 57,085,811 Le Buildings and improvements 4,963,579 313,338 - 5,276,917 Land improvements 379,431 47,387 - 426,818 Furniture, fixtures and equipment 3,169,152 239,540 (275,378) 3,133,314 Streets 15,835,866 1,526,764 - 17,362,630 Storm sewers 173,271 17,139 - 190,410 Intangible assets 5,460 4,661 - 10,121 Total accumulated depreciation 24,526,759 2,148,829 (275,378) 26,400,210 Total capital assets being depreciated - net 30,868,384 (127,489) (55,294) 30,685,601 Governmental activities capital assets - net $35,371,998 $1,865,921 ($4,075,185) $33,162,734 As shown above, construction in progress decreased by $4,019,891 during 2019. Of this amount, $2,159,178 was transferred to business-type activities. 57 CITY OF ST. ANTHONY, MINNESOTA NOTES TO FINANCIAL STATEMENTS December 31, 2019 Beginning Ending Balance Increases Decrease Balance Business-type activities: Capital assets, not being depreciated: Land $2,089,954 $ - $ - $2,089,954 Total capital assets, not being depreciated 2,089,954 0 0 2,089,954 Capital assets, being depreciated: Buildings and structures 8,467,897 - - 8,467,897 Land improvements 1,038,687 - - 1,038,687 Furniture, fixtures and equipment 4,841,674 12,250 - 4,853,924 Software and intangibles 26,022 - - 26,022 Stormwater 2,253,147 - - 2,253,147 Distribution and collection system 14,896,823 2,146,929 - 17,043,752 Total capital assets, being depreciated 31,524,250 2,159,179 0 33,683,429 Less accumulated depreciation for: Buildings and structures 2,431,346 208,108 - 2,639,454 Land improvements - 41,548 41,548 Furniture, fixtures and equipment 1,089,725 182,420 - 1,272,145 Software and intangibles 26,022 - - 26,022 Stormwater 693,176 91,291 - 784,467 Distribution and collection system 5,326,395 424,242 - 5,750,637 Total accumulated depreciation 9,566,664 947,609 0 10,514,273 Total capital assets being depreciated - net 21,957,586 1,211,570 0 23,169,156 Business-type activities capital assets - net $24,047,540 $1,211,570 $0 $25,259,110 58 CITY OF ST. ANTHONY, MINNESOTA NOTES TO FINANCIAL STATEMENTS December 31, 2019 Depreciation/amortization expense was charged to functions/programs of the primary government as follows: Governmental activities: General government $125,639 Public safety 204,195 Public works, including depreciation of general infrastructure assets 1,759,473 Parks and recreation 59,522 Total depreciation/amortization expense - governmental activities 2,148,829 Business-type activities: Liquor 71,110 Water/Water Plant 505,366 Sewer 107,969 Stormwater 263,164 Total depreciation/amortization expense - business-type activities 947,609 Total depreciation expense $3,096,438 CONSTRUCTION COMMITMENTS At December 31, 2019, the City had commitments of approximately $182,000 for uncompleted construction contracts. 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, 2019. 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 are issued to finance business-type activities. These bonds are Utility Revenue Bonds. The liability for these bonds is recorded in the Proprietary Funds. 59 CITY OF ST. ANTHONY, MINNESOTA NOTES TO FINANCIAL STATEMENTS December 31, 2019 As of December 31, 2019, the long-term debt of the City consisted of the following: Interest Issue Maturity Original Payable Rates Date Date Issue 12/31/19 Governmental Activities: G.O. Improvement Bonds: G.O. Improvement Refunding Bonds, Series 2011B 0.40-2.00% 12/29/2011 2/1/2021 $2,210,000 $400,000 G.O. Improvement Bonds, Series 2013B 0.45-2.625% 4/23/2013 2/1/2029 1,775,000 1,200,000 G.O. Improvement Bonds, Series 2014A 2.00-3.30% 4/10/2014 2/1/2030 2,070,000 1,560,000 G.O. Improvement Bonds, Series 2015A 2.00-3.00% 5/19/2015 2/1/2031 2,580,000 2,110,000 G.O. Improvement Bonds, Series 2016A 2.00-2.75% 6/2/2016 2/1/2032 1,455,000 1,280,000 G.O. Improvement Refunding Bonds, Series 2017A 3.00% 5/18/2017 2/1/2033 1,355,000 1,045,000 G.O. Improvement Bonds, Series 2017A 3.00% 5/18/2017 2/1/2033 2,600,000 2,455,000 G.O. Improvement Bonds, Series 2018A 3.00-4.00% 5/15/2018 2/1/2034 2,610,000 2,610,000 G.O. Improvement Refunding Bonds, Series 2019A 2.25-4.00% 7/18/2019 2/1/2027 1,335,000 1,335,000 Total improvement bonds 16,655,000 13,995,000 G.O. 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 2,840,000 G.O. Tax Increment Refunding Bonds, Series 2015B 2.00-3.00% 12/29/2015 2/1/2031 4,310,000 3,400,000 Total tax increment revenue bonds 7,975,000 6,240,000 G.O. Tax Abatement Bonds: G.O. Tax Abatement Bonds, Series 2016B 2.00% 6/2/2016 2/1/2026 1,445,000 635,000 G.O. Tax Abatement Refunding Bonds, Series 2017A 3.00% 5/18/2017 2/1/2025 835,000 645,000 G.O. Tax Abatement Refunding Bonds, Series 2019A 3.00-4.00% 7/18/2019 2/1/2035 1,145,000 1,145,000 Total tax abatement bonds 3,425,000 2,425,000 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 1,850,000 Other G.O. Bonds: G.O. Refunding Bonds, Series 2012A 2.00-2.75% 4/25/2012 2/1/2028 5,440,000 2,720,000 G.O. Street Reconstruction Bonds, Series 2014C 2.00-3.00% 7/24/2014 2/1/2024 1,305,000 755,000 G.O. Equipment Certificate, Series 2017A 3.00% 5/18/2017 2/1/2027 520,000 470,000 Total other G.O. bonds 7,265,000 3,945,000 Unamortized bond premiums N/A 894,108 Total - bonded indebtedness 39,315,000 29,349,108 Compensated absences payable N/A 704,606 Total - governmental activities 39,315,000 30,053,714 Business-type activities Revenue Bonds: G.O. Water and Sewer Revenue Bonds, Series 2013A 2.00% 4/16/2003 2/1/2024 1,440,000 715,000 Unamortized bond premiums N/A 18,408 Total - bonded indebtedness 1,440,000 733,408 Compensated absences N/A 196,578 Total City indebtedness - business-type activities 1,440,000 929,986 Total City indebtedness $40,755,000 $30,983,700 60 CITY OF ST. ANTHONY, MINNESOTA NOTES TO FINANCIAL STATEMENTS December 31, 2019 CURRENT REFUNDING On July 18, 2019, the City issued $2,480,000 of General Obligation Bonds, Series 2019A. On August 1, 2019, the City used $604,000 of the proceeds and $121,000 of cash on hand to advance refund the 2020 through 2026 maturities of the General Obligation Improvement Bonds, Series 2010A. The City refunded the Series 2010A bonds to reduce its total debt service payments over the last seven years of the bond by $36,086 and to obtain an economic gain (difference between the present value of the debt service payments on the old and new debt) of $29,815. On August 1, 2019, the City also used $827,000 of the proceeds from the Series 2019A bonds and $318,000 of cash on hand to advance refund the 2020 through 2027 maturities of the General Obligation Improvement Bonds, Series 2011A. The City refunded the Series 2011A bonds to reduce its total debt service payments over the last eight years of the bond by $94,007 and to obtain an economic gain (difference between the present value of the debt service payments on the old and new debt) of $70,007. Annual debt service requirements to maturity for long-term debt are as follows: Year Ending December 31 Principal Interest Principal Interest 2020 $1,215,000 $391,183 $445,000 $165,438 2021 1,285,000 357,438 450,000 156,487 2022 1,175,000 323,370 475,000 146,212 2023 1,210,000 288,826 495,000 134,412 2024 1,235,000 252,520 510,000 122,062 2025 1,265,000 214,951 530,000 109,313 2026 1,105,000 178,639 555,000 95,700 2027 1,020,000 146,754 580,000 80,081 2028 915,000 119,498 605,000 62,975 2029 940,000 93,494 635,000 43,787 2030 830,000 67,734 655,000 23,025 2031 685,000 45,056 305,000 4,876 2032 505,000 26,994 - - 2033 405,000 12,988 - - 2034 205,000 3,331 Total $13,995,000 $2,522,776 $6,240,000 $1,144,368 G.O. Improvement Bonds Governmental Activities G.O. Tax Increment Bonds 61 CITY OF ST. ANTHONY, MINNESOTA NOTES TO FINANCIAL STATEMENTS December 31, 2019 Year Ending December 31 Principal Interest Principal Interest Principal Interest 2020 $180,000 $70,183 $345,000 $35,690 $715,000 $85,350 2021 250,000 62,900 355,000 28,690 730,000 70,350 2022 255,000 55,625 370,000 21,348 750,000 54,677 2023 265,000 48,100 385,000 13,320 530,000 39,907 2024 275,000 40,275 395,000 4,542 375,000 28,155 2025 285,000 32,150 - - 220,000 20,132 2026 160,000 25,700 - - 225,000 14,178 2027 75,000 21,900 - - 230,000 7,919 2028 75,000 19,275 - - 170,000 2,338 2029 80,000 16,950 - - - - 2030 80,000 14,550 - - - - 2031 85,000 12,075 - - - - 2032 85,000 9,525 - - - - 2033 90,000 6,900 - - - - 2034 90,000 4,200 - - - - 2035 95,000 1,425 - - - - Total $2,425,000 $441,733 $1,850,000 $103,590 $3,945,000 $323,006 Other General Obligation Bonds Governmental Activities Revenue Bonds G.O. LeaseG.O. Tax Abatement Bonds Year Ending December 31 Principal Interest 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 $715,000 $36,650 Revenue Bonds Business-Type Activities It is not practicable to determine the specific year for payment of long-term accrued compensated absences. 62 CITY OF ST. ANTHONY, MINNESOTA NOTES TO FINANCIAL STATEMENTS December 31, 2019 CHANGE IN LONG-TERM LIABILITIES Long-term liability activity for the year ended December 31, 2019, was as follows: Beginning Ending Due Within Balance Additions Reductions Balance One Year Governmental activities: Bonds payable: G.O. improvement bonds $15,945,000 $1,335,000 ($3,285,000) $13,995,000 $1,215,000 G.O. tax increment refunding bonds 6,660,000 - (420,000) 6,240,000 445,000 G.O. tax abatement bonds 1,460,000 1,145,000 (180,000) 2,425,000 180,000 G.O. lease revenue refunding bonds 2,185,000 - (335,000) 1,850,000 345,000 G.O. refunding bonds 3,220,000 - (500,000) 2,720,000 515,000 G.O. street reconstruction bonds 895,000 - (140,000)755,000 145,000 G.O. equipment certificates 520,000 - (50,000) 470,00 055,000 Total bonds payable - governmental activities 30,885,000 2,480,000 (4,910,000) 28,455,000 2,900,000 Unamortized bond premiums 794,649 225,916 (126,457) 894,108 - Total bonded indebtedness 31,679,649 2,705,916 (5,036,457) 29,349,108 2,900,000 Compensated absences 657,594 401,091 (354,079) 704,606 230,801 Total governmental activities long-term liabilities $32,337,243 $3,107,007 ($5,390,536) $30,053,714 $3,130,801 Business-type activities: Revenue bonds $845,000 $ - ($130,000) $715,000 $135,000 Unamortized bond premiums 22,916 - (4,508) 18,408 - Total bonded indebtedness 867,916 0 (134,508) 733,408 135,000 Compensated absences 189,074 96,463 (88,959) 196,578 64,391 Total business-type activities long-term liabilities $1,056,990 $96,463 ($223,467) $929,986 $199,391 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, 2019 is backed by the full faith and credit of the City, including improvement and revenue bond issues. Delinquent assessments receivable at December 31, 2019 totaled $19,187. 63 CITY OF ST. ANTHONY, MINNESOTA NOTES TO FINANCIAL STATEMENTS December 31, 2019 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 2019A Tax Abatement 2019 utility improvements, trails Tax abatement revenue N/A N/A 2019-2035 $1,481,008 $ - $ - 2018A Road Improvements 2018 road construction Special Assessment s 30%N/A 2018-2034 3,297,837 110,554 308,319 Property tax levy 70% 2017A Tax Abatement Refunding of 2009A Tax abatement revenue 100%N/A 2017-2025 706,675 115,775 124,592 Emerald Park improvements 2017A Road Improvements Refunding of 2009A Special assessments 9%N/A 2017-2025 1,141,975 183,600 174,845 Refunding road reconstruction Property tax levy 91% 2019A Road Improvements Refunding of 2010A Special assessments N/A N/A 2019-2026 659,316 - - Refunding and 2011A Road Property tax levy Improvement Bonds 2012A Road Improvements 2012 road construction Special assessment s 13%N/A 2012 - 2028 2,932,393 565,049 529,599 Refunding Road improvement Property tax levy 87% Bonds 2006A,2007A 2012A Lease Revenue 2012 building improvements Property tax levy 100%N/A 2012 - 2024 1,953,590 377,490 350,527 Refunding Lease Revenue Bonds 2003A 2013B Road Improvements 2013 road construction Special assessment s 17%N/A 2013 - 2029 1,344,085 140,285 105,567 Property tax levy 83% 2014A Road Improvements 2014 road construction Special assessment s 18%N/A 2014 - 2030 1,830,970 175,230 176,118 Property tax levy 82% 2015A Road Improvements 2015 road construction Special assessment s 19%N/A 2015-2031 2,446,706 211,713 175,876 Property tax levy 81% 2016A Road Improvements 2016 road reconstruction Special assessme nts 52%N/A 2016 - 2032 1,477,019 118,638 230,936 Property tax levy 48% 2019A Improvements 2011 road construction Special assessments N/A N/A 2019-2027 914,112 - - Refunding Property tax levy Revenue Pledged Current Year 64 CITY OF ST. ANTHONY, MINNESOTA NOTES TO FINANCIAL STATEMENTS December 31, 2019 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 2016B Tax Abatement Mirror Lake improvements and Tax abatement revenue 100%N/A 2016 - 2026 680,050 98,550 103,449 pedestrian safety improvements 2017A Road Improvements 2017 road reconstruction Special assessments 17%N/A 2017 - 2033 2,999,275 220,825 231,725 Property tax levy 83% 2017A Equipment Certificate 2017 Equipment note Tax abatement revenue 100%N/A 2017 - 2033 528,500 64,850 276,363 2014C Road Improvements Refunding of 2008A Property tax levy 100%N/A 2014 - 2024 807,113 160,025 149,527 Silver Lake Road improvements 2015B TIF Refunding 2006B TIF Bonds TIF 100%N/A 2015-2031 3,986,931 317,362 710,009 2014B TIF Refunding 2007 TIF Bonds TIF 100%N/A 2015 -2031 3,397,438 276,625 605,030 2013A G.O. Water/Sewer Refunding 2003B G.O. Charges for services 100%33% 2013-2024 751,650 145,600 2,296,715 Revenue Water/Sewer Revenue Bonds 2011B Road Improvements Refunding 2004A and 2005A Special assessments 13%N/A 2012 - 2020 406,435 274,590 113,581 Refunding Street Improvement Bonds Property tax levy 87% Revenue Pledged Current Year Note 7 DEFINED BENEFIT PENSION A. COST-SHARING MULTIPLE-EMPLOYER PENSION 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 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. 65 CITY OF ST. ANTHONY, MINNESOTA NOTES TO FINANCIAL STATEMENTS December 31, 2019 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% of average salary for each of the first ten years of service and 1.7% of average salary for each additional year. Under Method 2, the accrual rate for Coordinated Plan members is 1.7% of average salary for all years of service. For members hired prior to July 1, 1989 a full annuity is available when age plus years of service equal 90 and normal retirement age is 65. For members hired on or after July 1, 1989 normal retirement age is the age for unreduced Social Security benefits capped at 66. Annuities, disability benefits, and survivor benefits are increased effective every January 1. Beginning January 1, 2019, the postretirement increase will be equal to 50% of the cost-of-living adjustment (COLA) announced by the SSA, with a minimum increase of at least 1% and a maximum of 1.5%. Recipients that have been receiving the annuity or benefit for at least a full year as of the June 30 before the effective date of the increase will receive the full increase. For recipients receiving the annuity or benefit for at least one month but less than a full year as of the June 30 before the effective date of the increase will receive a reduced prorated increase. For members retiring on January 1, 2024 or later, the increase will be delayed until normal retirement age (age 65 if hired prior to July 1, 1989, or age 66 for individuals hired on or after July 1, 1989). Members retiring under Rule of 90 are exempt from the delay to normal retirement. 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. A full, unreduced pension is earned when members are age 55 and vested, or for members who were first hired prior to July 1, 1989, when age plus years of service equal at least 90. Annuities, disability benefits, and survivor benefits are increased effective every January 1. Beginning January 1, 2019, the postretirement increase will be fixed at 1%. Recipients that have been receiving the annuity or benefit for at least 36 months as of the June 30 before the effective date of the increase will receive the full increase. For recipients receiving the annuity or benefit for at least 25 months but less than 36 months as of the June 30 before the effective date of the increase will receive a reduced prorated increase. 66 CITY OF ST. ANTHONY, MINNESOTA NOTES TO FINANCIAL STATEMENTS December 31, 2019 CONTRIBUTIONS Minnesota Statutes Chapter 353 sets the rates for employer and employee contributions. Contribution rates can only be modified by the state legislature. 1. GERF Contributions Coordinated Plan members were required to contribute 6.50% of their annual covered salary in fiscal year 2019; 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, 2019 were $179,816. The City’s contributions were equal to the required contributions as set by state statute. 2. PEPFF Contributions Police and Fire member’s contribution rates increased from 10.8% of pay to 11.3% and employer rates increased from 16.2% to 16.95% on January 1, 2019. The City’s contributions to the PEPFF for the year ended December 31, 2019 were $440,545. The City’s contributions were equal to the required contributions as set by state statute. PENSION COSTS 1. GERF Pension Costs At December 31, 2019, the City reported a liability of $1,846,611 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 2019. 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 $57,331. The net pension liability was measured as of June 30, 2019, 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 proportionate share 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, 2018, through June 30, 2019, relative to the total employer contributions received from all of PERA’s participating employers. At June 30, 2019, the City’s proportionate share was .0334% which was a decrease of .0011% from its proportion measured as of June 30, 2018. City's proportionate share of the net pension liability $1,846,611 State of Minnesota’s proportionate share of the net pension liability associated with the City 57,331 Total $1,903,942 For the year ended December 31, 2019, the City recognized pension expense of $209,839 for its proportionate share of the GERF’s pension expense. In addition, the City recognized an additional $4,294 as pension expense (and grant revenue) for its proportionate share of the State of Minnesota’s contribution of $16 million to the GERF. 67 CITY OF ST. ANTHONY, MINNESOTA NOTES TO FINANCIAL STATEMENTS December 31, 2019 At December 31, 2019, the City reported its proportionate share of the GERF’s deferred outflows of resources and deferred inflows of resources related to pensions from the following sources: Deferred Outflows Deferred Inflows of Resources of Resources Differences between expected and actual economic experience $50,789 $ - Changes in actuarial assumptions - 143,971 Net difference between projected and actual investment earnings - 187,728 Changes in proportion 16,542 65,851 Contributions paid to PERA subsequent to the measurement date 89,416 - Total $156,747 $397,550 $89,416 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, 2020. Other amounts reported as deferred outflows and inflows of resources related to pensions will be recognized in pension expense as follows: Year Ended Pension December 31 Expense 2020 ($122,745) 2021 (156,429) 2022 (54,020) 2023 2,975 Thereafter - 2. PEPFF Pension Costs At December 31, 2019, the City reported a liability of $2,599,756 measured as of June 30, 2019, 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 proportionate share 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, 2018, through June 30, 2019, relative to the total employer contributions received from all of PERA’s participating employers. At June 30, 2019, the City’s proportionate share was .2442% which was an increase of .0016% from its proportionate share measured as of June 30, 2018. The City also recognized $32,967 for the year ended December 31, 2019, 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, until the plan is 90 percent funded or until the State Patrol Plan (administered by the Minnesota State Retirement System) is 90 percent funded, whoever occurs later. In addition, the state will pay $4.5 million on October 1, 2018 and October 1, 2019 in direct state aid. Thereafter, by October 1 of each year, the state will pay $9 million until full funding is reached or July 1, 2048, whichever is earlier. 68 CITY OF ST. ANTHONY, MINNESOTA NOTES TO FINANCIAL STATEMENTS December 31, 2019 For the year ended December 31, 2019, the City recognized pension expense of $258,058 for its proportionate share of the PEPFF’s pension expense. At December 31, 2019, 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 $110,458 $382,930 Changes in actuarial assumptions 2,117,336 2,923,327 Net difference between projected and actual investment earnings - 549,414 Changes in proportion 141,474 522,979 Contributions paid to PERA subsequent to the measurement date 224,346 - Total $2,593,614 $4,378,650 $224,346 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, 2020. Other amounts reported as deferred outflows and inflows of resources related to pensions will be recognized in pension expense as follows: Year Ended Pension December 31 Expense 2020 ($276,665) 2021 (464,825) 2022 (1,140,846) 2023 (128,224) 2024 1,178 Thereafter - ACTUARIAL ASSUMPTIONS The total pension liability in the June 30, 2019 actuarial valuation was determined using an individual entry-age normal actuarial cost method and the following actuarial assumptions: Inflation 2.50% per year Active Member Payroll Growth 3.25% per year Investment Rate of Return 7.50% Salary increases were based on a service-related table. Mortality rates for active members, retirees, survivors, and disabilitants for all plans were based on RP 2014 tables for males or females, as appropriate, with slight adjustments to fit PERA’s experience. Cost of living benefit increases after retirement for retirees are assumed to be 1.25% per year for the General Employees Plan and 1.0% per year for the Police and Fire Plan. 69 CITY OF ST. ANTHONY, MINNESOTA NOTES TO FINANCIAL STATEMENTS December 31, 2019 Actuarial assumptions used in the June 30, 2019 valuation were based on the results of actuarial experience studies. The most recent four-year experience study in the General Employees Plan was completed in 2019. The most recent four-year experience study for Police and Fire Plan was completed in 2016. The following changes in actuarial assumptions and plan provisions occurred in 2019: General Employees Fund Changes in Actuarial Assumptions:  The mortality projection scale was changed from MP-2017 to MP-2018. Changes in Plan Provisions:  The employer supplemental contribution was changed prospectively, decreasing from $31.0 million to $21.0 million per year. The State’s special funding contribution was changed prospectively, requiring $16.0 million due per year through 2031. Police and Fire Fund Changes in Actuarial Assumptions:  The mortality projection scale was changed from MP-2017 to MP-2018. Changes in Plan Provisions:  There have been no changes since the prior valuation. 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: Long-Term Expected Long-Term Expected Asset Class Real Rate of Return Nominal Rate of Return Domestic equity 4.76%7.26% International equity 5.41%7.91% Fixed income 2.01%4.51% Real estate and alternatives 4.53%7.03% Cash and equivalents 0.74%3.24% Total (weighted average)5.26% Reduced for assumed investment expense -0.08% Net assumed investment return (rounded to 1/4%)5.25% 70 CITY OF ST. ANTHONY, MINNESOTA NOTES TO FINANCIAL STATEMENTS December 31, 2019 DISCOUNT RATE The discount rate used to measure the total pension liability in 2019 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 were 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. 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 $3,035,729 $1,846,611 $864,758 City's proportionate share of the PEPFF net pension liability $5,682,583 $2,599,756 $50 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 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. 71 CITY OF ST. ANTHONY, MINNESOTA NOTES TO FINANCIAL STATEMENTS December 31, 2019 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 $3,800 for each completed full year of service but not exceeding the maximum amount per year of service allowed by law for the minimum average amount of available financing per firefighter as prescribed by law. Members with 10 years of service receive partial vesting at 60% of the 20 year rate and 4% added for every one year of service beyond ten years up to 20 years. Disability Benefits A member who becomes permanently disabled from being an active firefighter in the City of St. Anthony, Minnesota will be eligible to collect a disability benefit in an amount equal to his/her full years of active service multiplied by the yearly lump sum service pension rate. If a member receives a disability benefit and subsequently returns to active duty, the total disability benefit will be deducted from his/her service pension. Death Benefits Upon the death of any active member of the Relief who is in good standing at the time of their death, the Relief shall pay to the surviving spouse or children, if any, the sum of $3,800 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, 2019, the following employees were covered by the benefit terms: Retired members entitled to benefits, but have not received them 9 Current members: Fully vested (20 years or more) 2 Partially vested (10 years to 19 years) 6 Nonvested (less than 10 years) 13 Total 30 72 CITY OF ST. ANTHONY, MINNESOTA NOTES TO FINANCIAL STATEMENTS December 31, 2019 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, 2019 were $6,000. The City’s contributions met the required contribution amount as set by state statute. State aid contributions for the year ended December 31, 2019 were $54,716. NET PENSION LIABILITY The City’s net pension liability (asset) was measured as of December 31, 2019, and the total pension liability used to calculate the net pension liability (asset) was determined by an actuarial valuation as of that date. ACTUARIAL ASSUMPTIONS The total pension liability in the December 31, 2019 actuarial valuation was determined using the following actuarial assumptions, applied to all periods included in the measurement: Investment rate of return 5.25% Projected salary increases N/A Inflation 2.75% Cost-of-living adjustments None Age of service retirement 50 Post retirement benefit increase None The expected investment rate of return and discount rate for 2019 was 5.25%, a decrease of .50% from 2018. Also, the benefit level increased from $3,500 to $3,800 in 2019. 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-2018, from a base year of 2006. Healthy post-retirement – RP 2014 annuitant generational mortality projected with mortality improvement scale MP-2018 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-2018 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. 73 CITY OF ST. ANTHONY, MINNESOTA NOTES TO FINANCIAL STATEMENTS December 31, 2019 The best-estimate of expected future real rates of return were developed by aggregating data from several published capital market assumption surveys and deriving a single best-estimate based on the average survey values. These capital market assumptions reflect both historical market experience as well as diverse views regarding anticipated future returns. The expected inflation assumption was developed based on an analysis of historical experience blended with forward- looking expectations available in market data. Best estimates of geometric real and nominal rates of return for each major asset class included in the pension plan’s asset allocation as of the measurement date are summarized in the following table: Long-Term Expected Long-Term Expected Asset Class Real Rate of Return Nominal Rate of Return Domestic equity 4.76% 7.26% International equity 5.41% 7.91% Fixed income 2.01% 4.51% Real estate and alternatives 4.53% 7.03% Cash and equivalents 0.74% 3.24% Total (weighted average) 5.26% Reduced for assumed investment expense -0.08% Net assumed investment return (rounded to 1/4%) 5.25% DISCOUNT RATES The discount rate used to measure the total pension liability was 5.25%. The liability discount rate was developed using the alternative method described in paragraph 43 of GASB 67, which states that “if the evaluations required by paragraph 41 can be made with sufficient reliability without a separate projection of cash flows into and out of the pension plan, alternative methods may be applied in making the evaluations.” The determination of the discount rate assumed that the plan’s current overfunded status, combined with Minnesota statutory funding requirements, provide sufficient reliability that projected plan assets will be adequate to pay future retiree benefits. Therefore, the plan’s long-term expected return on plan investments was applied to all periods of projected benefit payments to determine the total pension liability. 74 CITY OF ST. ANTHONY, MINNESOTA NOTES TO FINANCIAL STATEMENTS December 31, 2019 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, 2018 $706,985 $882,018 ($175,033) Changes for the year: Service cost 40,799 - 40,799 Interest 42,195 - 42,195 Differences between expected and actual experience (71,654) - (71,654) Changes of assumptions 15,462 - 15,462 Changes in benefit terms 35,173 - 35,173 Contributions - employer - 6,000 (6,000) On behalf contributions - State of MN - 54,716 (54,716) Contributions - employee - - - Net investment income - 98,394 (98,394) Benefit payments (27,928) (27,928) - Administrative expense - (11,640) 11,640 Net changes 34,047 119,542 (85,495) Balance at December 31, 2019 $741,032 $1,001,560 ($260,528) Increase (Decrease) PENSION LIABILITY (ASSET) SENSITIVITY The following presents the net pension liability (asset) of the City, calculated using the discount rate of 5.25%, as well as what the net pension liability would be if it were calculated using a discount rate that is 1 percentage point lower (4.25%) or 1 percentage point higher (6.25%) than the current rate: Current 1% Decrease Discount Rate 1% Increase (4.25%) (5.25%) (6.25%) Net pension liability (asset) ($232,668) ($260,528) ($286,504) PENSION PLAN FIDUCIARY NET POSITION Detailed information about the pension plan’s fiduciary net position is available in a 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. 75 CITY OF ST. ANTHONY, MINNESOTA NOTES TO FINANCIAL STATEMENTS December 31, 2019 PENSION EXPENSE AND DEFERRED OUTFLOWS OF RESOURCES AND DEFERRED INFLOWS OF RESOURCES RELATED TO PENSIONS For the year ended December 31, 2019, the City recognized pension expense of $83,289. At December 31, 2019, 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 $ - $90,283 Changes of assumptions 15,891 21,107 Net differences between projected and actual investment earnings 12,473 - Total $28,364 $111,390 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 Pension December 31 Expense 2020 ($7,927) 2021 (7,398) 2022 571 2023 (21,733) 2024 (12,240) Thereafter (34,299) C. PENSION EXPENSE Pension expense recognized by the City for the fiscal year ended December 31, 2019 is as follows: GERF $214,133 PEPFF 258,058 Fire Relief 83,289 Total $555,480 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. 76 CITY OF ST. ANTHONY, MINNESOTA NOTES TO FINANCIAL STATEMENTS December 31, 2019 Plan benefits depend solely on amounts contributed to the plan plus investment earnings, less administrative expenses. Minnesota Statutes, Chapter 353D.03, specifies plan provisions, including the employee and employer contribution rates for those qualified personnel who elect to participate. An eligible elected official who decides to participate contributes 5% of salary which is matched by the elected official's employer. For ambulance service personnel, employer contributions are determined by the employer, and for salaried employees, contributions must be a fixed percentage of salary. Employer contributions for volunteer personnel may be a unit value for each call or period of alert duty. Employees who are paid for their services may elect to make member contributions in an amount not to exceed the employer share. Employer and employee contributions are combined and used to purchase shares in one or more of the seven accounts of the Minnesota Supplemental Investment Fund. For administering the plan, PERA receives 2% of employer contributions and twenty-five hundredths of 1% (.0025) of the assets in each member's account annually. Total contributions made by the City during fiscal year 2019 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 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. The plan does not issue a stand-alone financial report. 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 2019, the City did not have any police officers or firefighters eligible for this benefit. 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 77 CITY OF ST. ANTHONY, MINNESOTA NOTES TO FINANCIAL STATEMENTS December 31, 2019 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 $846,113 was measured as of December 31, 2018 and was determined by an actuarial valuation as of January 1, 2018. Changes in the total OPEB liability during 2019 were: Balance - beginning of year $803,931 Changes for the year: Service cost 66,821 Interest 29,763 Changes of benefit terms - Differences between expected and actual experience - Changes in assumptions (43,327) Benefit payments (11,075) Net changes 42,182 Balance - end of year $846,113 Changes in assumptions reflect a change in the discount rate from 3.44% in 2018 to 4.09% in 2019. 78 CITY OF ST. ANTHONY, MINNESOTA NOTES TO FINANCIAL STATEMENTS December 31, 2019 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 4.09% Investment rate of return NA Healthcare cost trend rates 8% for 2018, decreasing each year to an ultimate rate of 5% 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, 2018, 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-2014 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. 79 CITY OF ST. ANTHONY, MINNESOTA NOTES TO FINANCIAL STATEMENTS December 31, 2019  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 80 CITY OF ST. ANTHONY, MINNESOTA NOTES TO FINANCIAL STATEMENTS December 31, 2019 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 (3.09%) or 1% higher (5.09%) than the current discount rate: 1% Decrease Discount Rate 1% Increase (3.09%)(4.09%)(5.09%) Total OPEB liability $913,367 $846,113 $782,493 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 (7% decreasing to 4%) or 1% higher (9% decreasing to 6%) than the current healthcare cost trend rates: Healthcare Cost 1% Decrease Trend Rates 1% Increase (7% decreasing to 4%) (8% decreasing to 5%) (9% decreasing to 6%) Total OPEB liability $741,563 $846,113 $968,708 H. OPEB EXPENSE AND DEFERRED OUTFLOWS AND INFLOWS OF RESOURCES RELATED TO OPEB For the year ended December 31, 2019, the City recognized $83,367 of OPEB expense. At December 31, 2019, 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 $16,976 $39,170 Contributions subsequent to the measurement date 11,075 - Total $28,051 $39,170 $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, 2020. 81 CITY OF ST. ANTHONY, MINNESOTA NOTES TO FINANCIAL STATEMENTS December 31, 2019 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 2020 ($2,142) 2021 (2,142) 2022 (2,142) 2023 (2,142) 2024 (2,142) Thereafter (11,484) ($22,194) Note 10 INTERFUND RECEIVABLES/PAYABLES, LOANS AND TRANSFERS Individual fund interfund receivable and payable balances at December 31, 2019 are as follows: Fund Receivable Payable Governmental activities: Major funds: General Fund $128,593 $ - Community Center Fund - 28,650 Revolving Improvement Fund - 99,943 Total $128,593 $128,593 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, 2019 are as follows: Interfund loans: Fund Receivable Payable Purpose Major funds: Public Utilities Infrastructure $987,426 $ - HRA TIF Improvements 1,369,416 2,328,742 Provide financing for pay off of Fannie Mae loan Nonmajor funds: Revolving Improvement - 28,100 Provide financing for Arbors Alley Project - Total $2,356,842 $2,356,842 82 CITY OF ST. ANTHONY, MINNESOTA NOTES TO FINANCIAL STATEMENTS December 31, 2019 Interfund transfers: Street Street Nonmajor Internal General Improvement HRA TIF Improvement Governmental Service Fund Debt Service Debt Service Project Funds Fund Total Governmental activities: General Fund $ - $ - $ - $ - $94,694 $86,300 $180,994 HRA TIF Improvements 8,200 - 593,988 - - - 602,188 Public Utilities Infrastructure - - - - 251,610 - 251,610 Nonmajor - 152,500 - 60,000 245,929 - 458,429 Business-type activities: Liquor 250,000 - - - - - 250,000 Stormwater utility - 85,000 - - - - 85,000 Total transfers $258,200 $237,500 $593,988 $60,000 $592,233 $86,300 $1,828,221 Transfer out Major Funds Transfer In Governmental Activities All 2019 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, 2019 as follows: Fund Amount Nonmajor funds: Internal Service Fund $7,793,351 Community Center Fund $12,448 Revolving Improvement Fund 142,490 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 83 CITY OF ST. ANTHONY, MINNESOTA NOTES TO FINANCIAL STATEMENTS December 31, 2019 determined. The amount of premium adjustment, if any, is considered immaterial and not recorded until received or paid. Property, casualty and automobile insurance coverage are provided through a pooled self-insurance program through the LMCIT. The City pays an annual premium to the LMCIT. The City is subject to supplemental assessments if deemed necessary by the LMCIT. The LMCIT reinsures through commercial companies for claims in excess of various amounts. The City retains risk for the deductible portions. These deductibles are considered immaterial to the financial statements. The City continues to carry commercial insurance for all other risks of loss, including liquor liability, employee health and disability insurance. There were no significant reductions in insurance from the previous year. The City did not have significant settlements in excess of insurance coverage in 2019 and 2018. 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, 2019. 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: 84 CITY OF ST. ANTHONY, MINNESOTA NOTES TO FINANCIAL STATEMENTS December 31, 2019 TIF District #3-5, Landings at Silver Lake Village: Issued in 2004 in the principal sum of $4,464,407 with an interest rate of 6.75% per annum. Principal and interest shall be paid on February 1 and August 1 thereafter to and including February 1, 2029. Payments are payable solely from available tax increment derived from the developed/redeveloped property and paid to the City. The pay-as-you-go note provides for payment to the developer equal to 90% of all tax increment received in the prior six months. The payment reimburses the developer for public improvements. The City shall have no obligation to pay any unpaid balance of principal or accrued interest that may remain after the final payment on February 1, 2029. The current year abatement (TIF note payments) amount to $488,184. At December 31, 2019, the principal amount outstanding on the note was $3,206,769. 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 $54,779. At December 31, 2019, 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 $166,733. At December 31, 2019, the principal amount outstanding on the note was $515,582. 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 85 CITY OF ST. ANTHONY, MINNESOTA NOTES TO FINANCIAL STATEMENTS December 31, 2019 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, 2019. Note 14 FUND BALANCE A. CLASSIFICATIONS At December 31, 2019, a summary of the governmental fund balance 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 $96,279 $ - $ - $ - $204 $ - $1,247 $97,730 Inventory 4,826 - - - - - - 4,826 Total nonspendable 101,105 0 0 0 204 0 1,247 102,556 Restricted for: Tax increment - - - - 1,895,517 - - 1,895,517 Public safety - - - - - - 39,505 39,505 Debt service - 4,173,104 6,226 - - - 1,062,034 5,241,364 Total restricted 0 4,173,104 6,226 0 1,895,517 0 1,101,539 7,176,386 Committed to: Recycling - - - - - - 14,305 14,305 Redevelopment activities - - - - - - 88,643 88,643 Total committed 0 0 0 0 0 0 102,948 102,948 Assigned to: Recycling - - - - - - 956 956 Street improvements/rehabilitiation - - - 358,244 - - - 358,244 Building improvements - - - - - - 510,120 510,120 Public safety - - - - - - 14,113 14,113 Public utilities infrastructure - - - - - 3,819,952 - 3,819,952 Parks and recreation - - - - - - 71,163 71,163 Other capital improvements - - - - - - 728,120 728,120 Total assigned 0 0 0 358,244 0 3,819,952 1,324,472 5,502,668 Unassigned 2,489,685 - - - (718,392) - (173,745) 1,597,548 Total $2,590,790 $4,173,104 $6,226 $358,244 $1,177,329 $3,819,952 $2,356,461 $14,482,106 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, 2019, the unassigned fund balance of the General Fund was 37% of the subsequent year’s budgeted expenditures. 86 CITY OF ST. ANTHONY, MINNESOTA NOTES TO FINANCIAL STATEMENTS December 31, 2019 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, 2019, 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, 2019 is unavailable. Note 16 LEGAL DEBT MARGIN The City is subject to a statutory limitation by the State of Minnesota for bonded indebtedness payable principally from property taxes. The City’s legal debt margin for 2019 and 2018 is computed as follows: December 31, December 31, 2019 2018 Market value: Ramsey County $372,282,800 $332,722,100 Hennepin County 651,404,400 584,189,715 Total market value 1,023,687,200 916,911,815 Debt limit percentage 3% 3% Debt limit 30,710,616 27,507,354 Amount of debt applicable to debt limit: Total bonded debt 29,170,000 31,730,000 Less nonapplicable debt: Revenue bonds (water, sewer) (715,000) (845,000) Tax abatement bonds (2,425,000) (1,460,000) Improvement bonds (16,715,000) (19,165,000) Tax increment bonds (6,240,000) (6,660,000) Cash and investments in applicable debt service funds (824,814) (857,154) Total amount of debt applicable to debt limit 2,250,186 2,742,846 Legal debt margin $28,460,430 $24,764,508 87 CITY OF ST. ANTHONY, MINNESOTA NOTES TO FINANCIAL STATEMENTS December 31, 2019 Note 17 PRESENTATION OF DEVELOPERS DEPOSITS For the year ended December 31, 2019, the City implemented GASB Statement No. 84, Fiduciary Activities. Based on the guidance provided by GASB 84, the City’s developer deposits no longer meet the definition of a fiduciary activity. Therefore, the amounts and activity previously reported in a fiduciary fund are now reported in the General Fund. GASB 84 also requires that changes resulting from the statement be applied retroactively. As such, $16,017 of cash deficit, developer deposits and receivables are now presented in the 2018 comparative column of the General Fund of the City’s 2019 financial statements. This reclassification had no effect on beginning net position or fund balance. Note 18 RECENTLY ISSUED ACCOUNTING STANDARDS The Governmental Accounting Standards Board (GASB) recently approved the following statements which were not implemented for these financial statements: Statement No. 87 Leases. The provisions of this Statement are effective for reporting periods beginning after June 15, 2021. Statement No. 91 Conduit Debt Obligations. The provisions of this Statement are effective for reporting periods beginning after December 15, 2021. Statement No. 92 Omnibus 2020. The provisions of this Statement are effective for reporting periods beginning after June 15, 2021. Statement No. 93 Replacement of Interbank Offered Rates. The provisions of this Statement contain multiple effective dates, the first being for reporting periods beginning after June 15, 2020. Statement No. 94 Public-Private and Public-Public Partnerships and Availability Payment Arrangements. The provisions of this Statement are effective for reporting periods beginning after June 15, 2022. 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 SUBSEQUENT EVENTS AND UNCERTAINTIES The COVID-19 pandemic continues to cause rapidly changing disruptions worldwide. Management has evaluated these conditions and believes that it is not possible to reasonably estimate the financial impact, if any, of COVID-19 on the City’s financial statements at December 31, 2019. 88 REQUIRED SUPPLEMENTARY INFORMATION 89 CITY OF ST. ANTHONY, MINNESOTA REQUIRED SUPPLEMENTARY INFORMATION Statement 9 BUDGETARY COMPARISON SCHEDULE - GENERAL FUND Page 1 of 5 For The Year Ended December 31, 2019 With Comparative Totals For The Year Ended December 31, 2018 2019 2018 Actual Variance with Actual Original Final Amounts Final Budget Amounts Revenues: General property taxes $4,513,460 $4,513,460 $4,546,353 $32,893 $4,234,627 Special assessments - - 1,685 1,685 2,171 Licenses and permits 260,807 260,807 268,565 7,758 295,955 Intergovernmental: Federal: Police grants 45,613 45,613 54,661 9,048 42,094 State: Local governement aid 553,873 553,873 553,865 (8) 522,240 Police aid 190,793 190,793 197,500 6,707 206,192 Fire aid 50,546 50,546 53,716 3,170 53,083 Municipal state aid - street maintenance 97,275 97,275 96,265 (1,010) 97,275 PERA aid 7,197 7,197 7,197 - 7,197 County: Street maintenance - - - - 31,756 Other 12,500 12,500 11,552 (948) 19,696 Local: School District DARE 14,500 14,500 14,500 - 16,287 Other 250 250 4,432 4,182 68 Total intergovernmental 972,547 972,547 993,688 21,141 995,888 Charges for services: Police contracts 713,204 713,204 713,204 - 692,768 Cable franchise fees 102,000 102,000 97,200 (4,800) 101,612 Antenna rental - water tower 58,229 58,229 58,232 3 56,256 Other 267,332 267,332 250,142 (17,190) 214,617 Total charges for services 1,140,765 1,140,765 1,118,778 (21,987) 1,065,253 Fines and forfeits 57,125 57,125 85,087 27,962 72,574 Contributions and donations 1,000 1,000 500 (500)3,873 Other revenue: Investment income 31,500 31,500 58,472 26,972 23,866 Refunds and reimbursments 12,000 12,000 9,752 (2,248) 19,596 Miscellaneous - other 13,500 13,500 14,362 862 35,559 Total other revenue 57,000 57,000 82,586 25,586 79,021 Total revenues 7,002,704 7,002,704 7,097,242 94,538 6,749,362 Expenditures: General government: Mayor and council: Current: Personal services 40,744 40,744 40,724 20 40,721 Other services and charges 44,091 44,091 45,343 (1,252) 52,816 Total mayor and council 84,835 84,835 86,067 (1,232) 93,537 Budgeted Amounts See accompanying notes to the required supplementary information. 90 CITY OF ST. ANTHONY, MINNESOTA REQUIRED SUPPLEMENTARY INFORMATION Statement 9 BUDGETARY COMPARISON SCHEDULE - GENERAL FUND Page 2 of 5 For The Year Ended December 31, 2019 With Comparative Totals For The Year Ended December 31, 2018 2019 2018 Actual Variance with Actual Original Final Amounts Final Budget Amounts Expenditures: (continued) General government: (continued) Public relations/cable: Current: Personal services $11,031 $11,031 $11,004 $27 $10,081 Supplies 510 510 52 458 - Other services and charges 35,138 35,138 33,180 1,958 37,490 Capital outlay 1,025 1,025 - 1,025 - Total public relations/cable 47,704 47,704 44,236 3,468 47,571 General management: Current: Personal services 106,295 106,295 104,071 2,224 98,543 Supplies 300 300 862 (562) 117 Other services and charges 31,861 31,861 25,949 5,912 29,281 Total general management 138,456 138,456 130,882 7,574 127,941 Elections: Current: Personal services 20,700 20,700 30,982 (10,282) 19,713 Supplies 525 525 1,464 (939) 365 Other services and charges 3,175 3,175 1,667 1,508 816 Total elections 24,400 24,400 34,113 (9,713) 20,894 Finance: Current: Personal services 252,649 252,649 257,175 (4,526) 251,459 Supplies 9,900 9,900 8,796 1,104 7,849 Other services and charges 131,943 131,943 121,523 10,420 111,996 Total finance 394,492 394,492 387,494 6,998 371,304 Assessing: Current: Personal services 4,023 4,023 4,318 (295) 4,169 Supplies 166 166 166 - 116 Other services and charges 65,036 65,036 64,000 1,036 61,000 Total assessing 69,225 69,225 68,484 741 65,285 Legal: Current: Contracted services 113,500 113,500 92,198 21,302 75,369 Planning and zoning: Current: Personal services 14,014 14,014 13,001 1,013 12,552 Supplies 133 133 133 - 121 Other services and charges 60,582 60,582 82,462 (21,880) 60,870 Total planning and zoning 74,729 74,729 95,596 (20,867) 73,543 Budgeted Amounts See accompanying notes to the required supplementary information. 91 CITY OF ST. ANTHONY, MINNESOTA REQUIRED SUPPLEMENTARY INFORMATION Statement 9 BUDGETARY COMPARISON SCHEDULE - GENERAL FUND Page 3 of 5 For The Year Ended December 31, 2019 With Comparative Totals For The Year Ended December 31, 2018 2019 2018 Actual Variance with Actual Original Final Amounts Final Budget Amounts Expenditures: (continued) General government: (continued) General government buildings: Current: Other services and charges $117,463 $117,463 $126,138 ($8,675) $111,441 Total general government 1,064,804 1,064,804 1,065,208 (404) 986,885 Public safety: Civil defense: Current: Personal services 77,925 77,925 77,381 544 73,785 Supplies 500 500 - 500 349 Other services and charges 2,000 2,000 2,135 (135)2,259 Total civil defense 80,425 80,425 79,516 909 76,393 Police protection: Current: Personal services 2,952,614 2,952,614 2,930,969 21,645 2,827,257 Supplies 102,804 102,804 80,763 22,041 81,886 Other services and charges 239,231 239,231 386,722 (147,491) 393,844 Total police protection 3,294,649 3,294,649 3,398,454 (103,805) 3,302,987 Fire protection: Current: Personal services 1,016,156 1,016,156 1,002,287 13,869 1,006,035 Supplies 37,905 37,905 23,244 14,661 34,760 Other services and charges 70,640 70,640 64,995 5,645 64,494 Total fire protection 1,124,701 1,124,701 1,090,526 34,175 1,105,289 Protective inspections: Current: Personal services 14,360 14,360 14,745 (385) 13,747 Supplies 102 102 - 102 433 Other services and charges 93,678 93,678 91,923 1,755 109,028 Total protective inspections 108,140 108,140 106,668 1,472 123,208 DARE program: Current: Personal services 13,146 13,146 10,502 2,644 9,928 Supplies 2,000 2,000 2,595 (595)1,981 Total DARE program 15,146 15,146 13,097 2,049 11,909 Total public safety 4,623,061 4,623,061 4,688,261 (65,200) 4,619,786 Budgeted Amounts See accompanying notes to the required supplementary information. 92 CITY OF ST. ANTHONY, MINNESOTA REQUIRED SUPPLEMENTARY INFORMATION Statement 9 BUDGETARY COMPARISON SCHEDULE - GENERAL FUND Page 4 of 5 For The Year Ended December 31, 2019 With Comparative Totals For The Year Ended December 31, 2018 2019 2018 Actual Variance with Actual Original Final Amounts Final Budget Amounts Public works: Street maintenance: Current: Personal services $417,819 $417,819 $412,675 $5,144 $404,553 Supplies 19,036 19,036 22,146 (3,110) 20,439 Other services and charges 137,779 137,779 109,299 28,480 137,890 Total street maintenance 574,634 574,634 544,120 30,514 562,882 Equipment maintenance: Current: Personal services 85,860 85,860 83,156 2,704 80,649 Supplies 253,734 251,429 238,490 12,939 171,346 Other services and charges 55,353 55,353 77,108 (21,755) 64,395 Total equipment maintenance 394,947 392,642 398,754 (6,112) 316,390 Tree and weed care: Current: Personal services 43,201 43,201 43,761 (560) 41,950 Supplies - - 633 (633) - Other services and charges 4,325 4,325 4,133 192 1,426 Total tree and weed care 47,526 47,526 48,527 (1,001) 43,376 Total public works 1,017,107 1,014,802 991,401 23,401 922,648 Parks and recreation: Park maintenance: Current: Personal services 157,584 157,584 159,102 (1,518) 153,002 Supplies 11,445 13,750 15,538 (1,788) 14,357 Other services and charges 41,057 41,057 41,503 (446) 42,981 Total park maintenance 210,086 212,391 216,143 (3,752) 210,340 Recreation: Current: Community services 52,176 52,176 52,176 - 52,176 Total parks and recreation 262,262 264,567 268,319 (3,752) 262,516 Budgeted Amounts See accompanying notes to the required supplementary information. 93 CITY OF ST. ANTHONY, MINNESOTA REQUIRED SUPPLEMENTARY INFORMATION Statement 9 BUDGETARY COMPARISON SCHEDULE - GENERAL FUND Page 5 of 5 For The Year Ended December 31, 2019 With Comparative Totals For The Year Ended December 31, 2018 2019 2018 Actual Variance with Actual Original Final Amounts Final Budget Amounts Expenditures: (continued) Nondepartmental: Personal services $ - $ - $ - $ - $31,805 Supplies 40,000 40,000 69,520 (29,520) 15,073 Insurance deductible costs 12,500 12,500 8,713 3,787 14,384 Total nondepartmental 52,500 52,500 78,233 (25,733) 61,262 Total expenditures 7,019,734 7,019,734 7,091,422 (71,688) 6,853,097 Revenues over (under) expenditures (17,030) (17,030) 5,820 22,850 (73,735) Other financing sources (uses): Transfers in 208,200 208,200 258,200 50,000 357,870 Transfers out (180,994) (180,994) (180,994) - (176,485) Total other financing sources (uses) 27,206 27,206 77,206 50,000 181,385 Net change in fund balance $10,176 $10,176 83,026 $72,850 107,650 Fund balance - January 1 2,507,764 2,400,114 Fund balance - December 31 $2,590,790 $2,507,764 Budgeted Amounts See accompanying notes to the required supplementary information. 94 CITY OF ST. ANTHONY, MINNESOTA REQUIRED SUPPLEMENTARY INFORMATION Statement 10 SCHEDULE OF CHANGES IN THE CITY'S TOTAL OPEB LIABILITY AND RELATED RATIOS For The Year Ended December 31, 2019 2019 2018 Total OPEB liability: Service cost $66,821 $60,682 Interest 29,763 28,711 Changes of benefit terms - - Differences between expected and actual experience - - Changes in assumptions (43,327) 21,006 Benefit payments (11,075) (10,672) Net change in total OPEB liability 42,182 99,727 Total OPEB liability - beginning 803,931 704,204 Total OPEB liability - ending $846,113 $803,931 Covered-employee payroll $4,897,999 $4,627,624 Total OPEB liability as a percentage of covered-employee payroll 17.3%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. See accompanying notes to the required supplementary information. 95 CITY OF ST. ANTHONY, MINNESOTA REQUIRED SUPPLEMENTARY INFORMATION Statement 11 SCHEDULE OF PROPORTIONATE SHARE OF NET PENSION LIABILITY - GENERAL EMPLOYEES RETIREMENT FUND For The Last Ten Years St. Anthony's Proportionate State's Share of the Plan Proportionate Net Pension Fiduciary St. Anthony's St. Anthony's Share (Amount) Liability Net Position Proportionate Proportionate of the Net as a as a Share Share (Amount) Pension Percentage Percentage Measurement Fiscal Year (Percentage) of of the Net Liability of its covered of the Total Date Ending the Net Pension Pension Associated with Covered Payroll Pension June 30 December 31 Liability Liability (a) St. Anthony (b) Total (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% 2019 2019 0.0334%1,846,611 57,331 1,903,942 2,363,174 80.6% 80.2% 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. See accompanying notes to the required supplementary information. 96 CITY OF ST. ANTHONY, MINNESOTA REQUIRED SUPPLEMENTARY INFORMATION Statement 12 SCHEDULE OF PENSION CONTRIBUTIONS - GENERAL EMPLOYEES RETIREMENT FUND For The Last Ten Years Statutorily Contributions in Contribution Contributions as a Fiscal Year Required Relation to the Deficiency Covered Percentage of Ending Contribution Statutorily Required (Excess)Payroll Covered December 31 (a)Contribution (b)(a-b)(c)Payroll (b/c) 2015 $161,326 $161,326 $ - $2,151,016 7.50% 2016 160,607 160,607 - 2,141,425 7.50% 2017 167,798 167,798 - 2,237,307 7.50% 2018 175,748 175,748 - 2,343,317 7.50% 2019 179,816 179,816 - 2,397,523 7.50% 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. See accompanying notes to the required supplementary information. 97 CITY OF ST. ANTHONY, MINNESOTA REQUIRED SUPPLEMENTARY INFORMATION Statement 13 SCHEDULE OF PROPORTIONATE SHARE OF NET PENSION LIABILITY - PUBLIC EMPLOYEES POLICE AND FIRE FUND For The Last Ten Years 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% 2019 2019 0.2442%2,599,756 2,576,175 100.9%89.2% 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. See accompanying notes to the required supplementary information. 98 CITY OF ST. ANTHONY, MINNESOTA REQUIRED SUPPLEMENTARY INFORMATION Statement 14 SCHEDULE OF PENSION CONTRIBUTIONS - PUBLIC EMPLOYEES POLICE AND FIRE FUND For The Last Ten Years Statutorily Contributions in Contribution Contributions as a Fiscal Year Required Relation to the Deficiency Covered Percentage of Ending Contribution Statutorily Required (Excess)Payroll Covered December 31 (a)Contribution (b) (a-b)(c)Payroll (b/c) 2015 $435,571 $435,571 $ - $2,688,709 16.20% 2016 447,527 447,527 - 2,762,512 16.20% 2017 424,887 424,887 - 2,622,760 16.20% 2018 419,242 419,242 - 2,587,918 16.20% 2019 440,545 440,545 - 2,599,085 16.95% 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. See accompanying notes to the required supplementary information. 99 CITY OF ST. ANTHONY, MINNESOTA REQUIRED SUPPLEMENTARY INFORMATION Statement 15 SCHEDULE OF CHANGES IN THE NET PENSION LIABILITY AND RELATED RATIOS - ST. ANTHONY FIRE DEPARTMENT RELIEF ASSOCIATION For The Last Ten Years Fiscal Year Ending and Measurement date December 31, 2019 December 31, 2018 December 31, 2017 December 31, 2016 December 31, 2015 Total pension liability: Service cost $40,799 $37,633 $37,542 $47,233 $44,095 Interest 42,195 40,951 44,308 31,829 30,759 Changes in benefit terms 35,173 26,091 - - - Differences between expected and actual experience (71,654) - (35,041) - - Changes of assumptions 15,462 - 2,699 (36,075) - Benefit payments (27,928)(144,500)(7,260)(80,200)(25,472) Net change in total pension liability 34,047 (39,825)42,248 (37,213)49,382 Total pension liability - beginning 706,985 746,810 704,562 741,775 692,393 Total pension liability - ending (a)$741,032 $706,985 $746,810 $704,562 $741,775 Plan fiduciary net position: Contributions - employer $6,000 $6,000 $6,000 $6,000 $6,000 Contributions - State of Minnesota 54,716 53,083 51,206 51,174 48,725 Contributions - employee - - - - - Net investment income 98,394 (54,281)93,511 39,971 (23,129) Benefit payments (27,928)(144,500)(7,260)(80,200)(25,472) Administrative expense (11,640)(11,547)(11,829)(8,653)(10,561) Net change in plan fiduciary net position 119,542 (151,245)131,628 8,292 (4,437) Plan fiduciary net position - beginning 882,018 1,033,263 901,635 893,343 897,780 Plan fiduciary net position - ending (b)$1,001,560 $882,018 $1,033,263 $901,635 $893,343 Net pension liability (asset) - ending (a) - (b)($260,528)($175,033)($286,453) ($197,073)($151,568) Plan fiduciary net position as a percentage of the total pension liability 135.2%124.8%138.4%128.0%120.4% Covered-employee payroll*NA NA NA NA NA Net pension liability as a percentage of covered employee payroll*NA NA NA NA NA Pension benefit per year of service $3,800 $3,500 $3,300 $3,300 $3,300 Number of plan participants 30 33 35 32 32 *The Relief Association is comprised of volunteers, therefore there are no payroll expenditures. See accompanying notes to the required supplementary information. 100 CITY OF ST. ANTHONY, MINNESOTA REQUIRED SUPPLEMENTARY INFORMATION Statement 16 SCHEDULE OF CONTRIBUTIONS - ST. ANTHONY FIRE DEPARTMENT RELIEF ASSOCIATION For The Year Ended December 31, 2019 Statutorily Contributions in Contribution Contributions as a Fiscal Year Required Relation to the Deficiency Covered Percentage of Ending Contribution Statutorily Required (Excess)Payroll**Covered December 31 (a)Contribution (b)(a-b)(c)Payroll** (b/c) 2015 $22,977 $53,725 ($30,748)$ - NA 2016 - 56,174 (56,174) - NA 2017 - 56,546 (56,546) - NA 2018 - 58,083 (58,083) - NA 2019 - 60,716 (60,716) - NA *The Relief Association is comprised of volunteers, therefore, there are no payroll expenditures. (i.e., there are no covered payroll amounts or percentage calculations.) See accompanying notes to the required supplementary information. 101 - This page intentionally left blank - 102 CITY OF ST. ANTHONY, MINNESOTA REQUIRED SUPPLEMENTARY INFORMATION NOTES TO RSI December 31, 2019 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 2019 Changes Changes in Actuarial Assumptions: - The mortality projection scale was changed from MP-2017 to MP-2018 Changes in the Plan Provisions: - The employer supplemental contribution was changed prospectively, decreasing from $31.0 million to $21.0 million per year. The State’s special funding contribution was changed prospectively, requiring $16.0 million due per year through 2031. - 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%. 103 CITY OF ST. ANTHONY, MINNESOTA REQUIRED SUPPLEMENTARY INFORMATION NOTES TO RSI December 31, 2019 - 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 2019 Changes Changes in Actuarial Assumptions: - The mortality projection scale was changed from MP-2017 to MP-2018 2018 Changes Changes in Actuarial Assumptions: - The mortality projection scale was changed from MP-2016 to MP-2017. 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. 104 CITY OF ST. ANTHONY, MINNESOTA REQUIRED SUPPLEMENTARY INFORMATION NOTES TO RSI December 31, 2019 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%. 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%. 105 - This page intentionally left blank - 106 COMBINING AND INDIVIDUAL NONMAJOR FUND FINANCIAL STATEMENTS AND SCHEDULES 107 - This page intentionally left blank - 108 SPECIAL REVENUE FUNDS Special Revenue Funds are used to account for the proceeds of specific revenue sources that are legally restricted to expenditures for specified purposes. DEBT SERVICE FUNDS Debt Service Funds are used to account for the accumulation of resources for, and payment of, interest, principal and related costs on long-term debt. CAPITAL PROJECT FUNDS Capital Project Funds account for financial resources to be used for the acquisition or construction of major capital facilities (other than those financed by Proprietary Funds). 109 CITY OF ST. ANTHONY, MINNESOTA COMBINING BALANCE SHEET Statement 17 NONMAJOR GOVERNMENTAL FUNDS December 31, 2019 With Comparative Totals For December 31, 2018 Special Debt Capital Revenue Service Project 2019 2018 Assets Cash and investments $117,694 $1,059,540 $1,382,423 $2,559,657 $2,422,152 Due from other governmental units - - 2,636 2,636 171,470 Accounts receivable - net 23,749 - 2,050 25,799 733 Property taxes receivable: Delinquent 2,638 3,582 1,964 8,184 7,363 Due from county 757 2,494 1,615 4,866 10,168 Prepaid items 1,247 - - 1,247 2,992 Loans receivable 21,493 - - 21,493 32,674 Special assessments receivable - - 7,934 7,934 13,373 Total assets $167,578 $1,065,616 $1,398,622 $2,631,816 $2,660,925 Liabilities, Deferred Inflows of Resources, and Fund Balance Liabilities: Accounts payable $5,852 $ - $25,198 $31,050 $184,224 Due to other governmental units - - 62,798 62,798 30 Salaries payable 2,924 - - 2,924 2,349 Contracts payable - - 5,772 5,772 148,419 Interfund paayble 28,650 - 99,943 128,593 - Interfund loan payable - - 28,100 28,100 33,720 Total liabilities 37,426 0 221,811 259,237 368,742 Deferred inflows of resources: Unavailable revenue 2,638 3,582 9,898 16,118 20,736 Fund balance (deficit): Nonspendable 1,247 - - 1,247 2,992 Restricted 39,505 1,062,034 - 1,101,539 1,111,327 Committed 102,948 - - 102,948 124,214 Assigned 15,069 - 1,309,403 1,324,472 1,135,817 Unassigned (31,255) - (142,490) (173,745) (102,903) Total fund balance (deficit)127,514 1,062,034 1,166,913 2,356,461 2,271,447 Total liabilities, deferred inflows of resources, and fund balance $167,578 $1,065,616 $1,398,622 $2,631,816 $2,660,925 Total Nonmajor Governmental Funds 110 CITY OF ST. ANTHONY, MINNESOTA COMBINING STATEMENT OF REVENUES, EXPENDITURES AND Statement 18 CHANGES IN FUND BALANCE NONMAJOR GOVERNMENTAL FUNDS For The Year Ended December 31, 2019 With Comparative Totals For The Year Ended December 31, 2018 Special Debt Capital Revenue Service Project 2019 2018 Revenues: General property taxes $167,476 $556,585 $331,006 $1,055,067 $1,040,176 Intergovernmental 16,931 - 3,551 20,482 41,966 Special assessments - - 6,177 6,177 2,971 Charges for services 131,807 - - 131,807 134,299 Fines and forfeits 11,205 - - 11,205 12,964 Investment income 2,810 22,225 41,982 67,017 34,284 Contributions and donations - - 1,050 1,050 600 Refunds and reimbursements 857 - 23,434 24,291 137,245 Miscellaneous - - 304 304 - Total revenues 331,086 578,810 407,504 1,317,400 1,404,505 Expenditures: Current: General government 25,386 - 112,296 137,682 30,358 Public safety 3,331 - 7,103 10,434 241,572 Public works - - 60,700 60,700 255,659 Parks and recreation 181,159 - 24,952 206,111 168,575 Housing and redevelopment 161,012 - - 161,012 148,966 Capital outlay: General government - - - - 102,507 Public safety - - - - 603,056 Public works - - 124,514 124,514 35,906 Parks and recreation - - 28,817 28,817 10,705 Debt service: Principal - 565,000 - 565,000 505,000 Interest - 91,665 1,773 93,438 117,107 Paying agent fees - 1,532 - 1,532 1,489 Total expenditures 370,888 658,197 360,155 1,389,240 2,220,900 Revenues over (under) expenditures (39,802) (79,387) 47,349 (71,840) (816,395) Other financing sources: Sale of capital assets - - 23,050 23,050 64,754 Transfers in 94,694 61,235 436,304 592,233 339,250 Transfers out (94,694) - (363,735) (458,429) (517,065) Total other financing sources 0 61,235 95,619 156,854 (113,061) Net change in fund balance (39,802) (18,152) 142,968 85,014 (929,456) Fund balance - January 1 167,316 1,080,186 1,023,945 2,271,447 3,200,903 Fund balance - December 31 $127,514 $1,062,034 $1,166,913 $2,356,461 $2,271,447 Total Nonmajor Governmental Funds 111 - This page intentionally left blank - 112 NONMAJOR GOVERNMENTAL FUNDS 113 - This page intentionally left blank - 114 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. 115 CITY OF ST. ANTHONY, MINNESOTA SUBCOMBINING BALANCE SHEET NONMAJOR SPECIAL REVENUE FUNDS December 31, 2019 With Comparative Totals For December 31, 2018 Community Center Fund Police Forfeiture Fund Assets Cash and investments $ - $46,294 Accounts receivable - net 20,532 - Property taxes receivable: Delinquent - - Due from county - - Prepaid items 1,093 - Loans receivable - - Total assets $21,625 $46,294 Liabilities, Deferred Inflows of Resources, and Fund Balance Liabilities: Accounts payable $5,060 $ - Due to other governmental units - - Salaries payable 363 - Interfund payable 28,650 - Total liabilities 34,073 0 Deferred inflows of resources: Unavailable revenue - - Fund balance (deficit): Nonspendable 1,093 - Restricted - 35,584 Committed - - Assigned - 10,710 Unassigned (13,541) - Total fund balance (deficit)(12,448)46,294 Total liabilities, deferred inflows of resources, and fund balance $21,625 $46,294 116 Statement 19 Recycling Fund HRA Fund Fire Education / Training Fund 2019 2018 $15,261 $48,815 $7,324 $117,694 $142,369 - 3,217 - 23,749 733 - 2,638 - 2,638 1,173 - 757 - 757 1,580 - 154 - 1,247 2,992 - 21,493 - 21,493 32,674 $15,261 $77,074 $7,324 $167,578 $181,521 $ - $792 $ - $5,852 $10,653 - - - - 30 - 2,561 - 2,924 2,349 - - - 28,650 - 0 3,353 0 37,426 13,032 - 2,638 - 2,638 1,173 - 154 - 1,247 2,992 - - 3,921 39,505 31,141 14,305 88,643 - 102,948 124,214 956 - 3,403 15,069 28,695 - (17,714) - (31,255)(19,726) 15,261 71,083 7,324 127,514 167,316 $15,261 $77,074 $7,324 $167,578 $181,521 Total Nonmajor Special Revenue Funds 117 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, 2019 With Comparative Totals For The Year Ended December 31, 2018 Community Center Fund Police Forfeiture Fund Revenues: General property taxes $ - $ - Intergovernmental - - Charges for services: Administrative fees - - Rental receipts 127,300 - Fines and forfeits - 11,205 Investment income 432 1,436 Refunds and reimbursements - - Total revenues 127,732 12,641 Expenditures: Current: General government - - Public safety - 3,171 Parks and recreation 181,159 - Housing and redevelopment - - Total expenditures 181,159 3,171 Revenues over (under) expenditures (53,427)9,470 Other financing sources (uses): Transfers in 94,694 - Transfers out (94,694) - Total other financing sources (uses)0 0 Net change in fund balance (53,427)9,470 Fund balance (deficit) - January 1 40,979 36,824 Fund balance (deficit) - December 31 ($12,448)$46,294 118 Statement 20 Recycling Fund HRA Fund Fire Education / Training Fund 2019 2018 $ - $167,476 $ - $167,476 $162,543 16,931 - - 16,931 16,150 4,017 - 490 4,507 6,999 - - - 127,300 127,300 - - - 11,205 12,964 571 121 250 2,810 1,614 - 857 - 857 1,131 21,519 168,454 740 331,086 328,701 25,386 - - 25,386 21,873 - - 160 3,331 8,405 - - - 181,159 140,284 - 161,012 - 161,012 148,966 25,386 161,012 160 370,888 319,528 (3,867) 7,442 580 (39,802) 9,173 - - - 94,694 90,185 - - - (94,694) (90,185) 00000 (3,867) 7,442 580 (39,802) 9,173 19,128 63,641 6,744 167,316 158,143 $15,261 $71,083 $7,324 $127,514 $167,316 Total Nonmajor Special Revenue Funds 119 - This page intentionally left blank - 120 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. 121 CITY OF ST. ANTHONY, MINNESOTA SUBCOMBINING BALANCE SHEET Statement 21 NONMAJOR DEBT SERVICE FUNDS December 31, 2019 With Comparative Totals For December 31, 2018 Public Facilities Revenue Bonds Tax Abatement Fund Equipment Certificates Fund HSIP Tax Abatement 2019 2018 Assets Cash and investments $597,841 $266,070 $58,042 $137,587 $1,059,540 $1,074,590 Property taxes receivable: Delinquent 2,198 780 - 604 3,582 4,260 Due from county 1,488 514 - 492 2,494 5,596 Total assets $601,527 $267,364 $58,042 $138,683 $1,065,616 $1,084,446 Liabilities, Deferred Inflows of Resources, and Fund Balance Liabilities: Accounts payable $ - $ - $ - $ - $ - $ - Deferred inflows of resources: Unavailable revenue 2,198 780 - 604 3,582 4,260 Fund balance: Restricted 599,329 266,584 58,042 138,079 1,062,034 1,080,186 Total liabilities, deferred inflows of resources, and fund balance $601,527 $267,364 $58,042 $138,683 $1,065,616 $1,084,446 Total Nonmajor Debt Service Funds 122 CITY OF ST. ANTHONY, MINNESOTA SUBCOMBINING STATEMENT OF REVENUES,Statement 22 EXPENDITURES AND CHANGES IN FUND BALANCE NONMAJOR DEBT SERVICE FUNDS For The Year Ended December 31, 2019 With Comparative Totals For The Year Ended December 31, 2018 Public Facilities Revenue Bonds Tax Abatement Fund Equipment Certificates Fund HSIP Tax Abatement 2019 2018 Revenues: General property taxes $337,565 $118,025 $ - $100,995 $556,585 $572,210 Investment income 12,963 6,566 242 2,454 22,225 10,218 Total revenues 350,528 124,591 242 103,449 578,810 582,428 Expenditures: Debt service: Principal 335,000 95,000 50,000 85,000 565,000 505,000 Interest 42,490 20,775 14,850 13,550 91,665 111,808 Paying agent fees 276 300 300 656 1,532 1,489 Total expenditures 377,766 116,075 65,150 99,206 658,197 618,297 Revenues over (under) expenditures (27,238)8,516 (64,908)4,243 (79,387) (35,869) Other financing sources (uses): Transfers in - - 61,235 - 61,235 68,880 Total other financing sources (uses)0 0 61,235 0 61,235 68,880 Net change in fund balance (27,238)8,516 (3,673)4,243 (18,152) 33,011 Fund balance - January 1 626,567 258,068 61,715 133,836 1,080,186 1,047,175 Fund balance - December 31 $599,329 $266,584 $58,042 $138,079 $1,062,034 $1,080,186 Total Nonmajor Debt Service Funds 123 - This page intentionally left blank - 124 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. 125 CITY OF ST. ANTHONY, MINNESOTA SUBCOMBINING BALANCE SHEET Statement 23 NONMAJOR CAPITAL PROJECT FUNDS December 31, 2019 With Comparative Totals For December 31, 2018 Revolving Improvement Park Improvement Capital Equipment Fund Building Improvement Fund 2019 2018 Assets Cash and investments $ - $71,163 $801,506 $509,754 $1,382,423 $1,205,193 Due from other governmental units - - 2,636 - 2,636 171,470 Accounts receivable - net - - 2,050 - 2,050 - Property taxes receivable: Delinquent - - 1,503 461 1,964 1,930 Due from county - - 1,249 366 1,615 2,992 Special assessment receivable 7,934 - - - 7,934 13,373 Total assets $7,934 $71,163 $808,944 $510,581 $1,398,622 $1,394,958 Liabilities, Deferred Inflows of Resources, and Fund Balance Liabilities: Accounts payable $8,675 $ - $16,523 $ - $25,198 $173,571 Due to other governmental units - - 62,798 - 62,798 - Contracts payable 5,772 - - - 5,772 148,419 Interfund payable 99,943 - - - 99,943 - Interfund loan payable 28,100 - - - 28,100 33,720 Total liabilities 142,490 0 79,321 0 221,811 355,710 Deferred inflows of resources: Unavailable revenue 7,934 - 1,503 461 9,898 15,303 Fund balance (deficit): Nonspendable - - - - - - Assigned - 71,163 728,120 510,120 1,309,403 1,107,122 Unassigned (142,490) - - - (142,490) (83,177) Total fund balance (deficit)(142,490) 71,163 728,120 510,120 1,166,913 1,023,945 Total liabilities, deferred inflows of resources, and fund balance $7,934 $71,163 $808,944 $510,581 $1,398,622 $1,394,958 Total Nonmajor Capital Project Funds 126 CITY OF ST. ANTHONY, MINNESOTA SUBCOMBINING STATEMENT OF REVENUES,Statement 24 EXPENDITURES AND CHANGES IN FUND BALANCE NONMAJOR CAPITAL PROJECT FUNDS For The Year Ended December 31, 2019 With Comparative Totals For The Year Ended December 31, 2018 Revolving Improvement Park Improvement Capital Equipment Fund Building Improvement Fund 2019 2018 Revenues: General property taxes $ - $ - $254,233 $76,773 $331,006 $305,423 Intergovernmental - - 3,551 - 3,551 25,816 Special assessments 6,177 - - - 6,177 2,971 Investment income - 3,272 23,768 14,942 41,982 22,452 Contributions and donations - - 1,050 - 1,050 600 Refunds and reimbursements 23,434 - - - 23,434 136,114 Miscellaneous - - 304 - 304 - Total revenues 29,611 3,272 282,906 91,715 407,504 493,376 Expenditures: General government: Materials and supplies - - 112,296 - 112,296 8,485 Capital outlay - - - - - 102,507 Public safety: Other services and charges - - 7,103 - 7,103 233,167 Capital outlay - - - - - 603,056 Public works: Materials and supplies - - - 24,439 24,439 12,959 Contractual services 36,261 - - - 36,261 242,700 Capital outlay - - 124,514 - 124,514 35,906 Parks and recreation: Materials and supplies - 24,952 - - 24,952 19,466 Other services and charges - - - - - 8,825 Capital outlay - 28,817 - - 28,817 10,705 Debt service: Interest 1,773 - - - 1,773 5,299 Total expenditures 38,034 53,769 243,913 24,439 360,155 1,283,075 Revenues over (under) expenditures (8,423) (50,497) 38,993 67,276 47,349 (789,699) Other financing sources (uses): Sale of capital assets - - 23,050 - 23,050 64,754 Transfers in 251,610 - 90,000 94,694 436,304 180,185 Transfers out (302,500) - (61,235) - (363,735) (426,880) Total other financing sources (uses)(50,890)0 51,815 94,694 95,619 (181,941) Net change in fund balance (59,313) (50,497) 90,808 161,970 142,968 (971,640) Fund balance (deficit) - January 1 (83,177) 121,660 637,312 348,150 1,023,945 1,995,585 Fund balance (deficit) - December 31 ($142,490) $71,163 $728,120 $510,120 $1,166,913 $1,023,945 Total Nonmajor Capital Project Funds 127 CITY OF ST. ANTHONY, MINNESOTA SPECIAL REVENUE FUND - 601 COMMUNITY CENTER FUND Statement 25 SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE - BUDGET AND ACTUAL For The Year Ended December 31, 2019 With Comparative Actual Amounts For The Year Ended December 31, 2018 2018 Original Final Actual Actual Revenues: Charges for services: Rental receipts $127,300 $127,300 $127,300 $127,300 Investment income 425 425 432 787 Total revenues 127,725 127,725 127,732 128,087 Expenditures: Parks and recreation: Current: Personal services 45,171 44,796 45,409 43,006 Supplies 2,119 1,767 6,027 1,732 Contractual services 98,786 96,760 129,723 95,546 Total expenditures 146,076 143,323 181,159 140,284 Revenues over (under) expenditures (18,351) (15,598) (53,427) (12,197) Other financing sources (uses): Transfer in 94,694 94,694 94,694 90,185 Transfer out - - (94,694) (90,185) Total other financing sources (uses)94,694 94,694 0 0 Net change in fund balance $76,343 $79,096 (53,427) (12,197) Fund balance (deficit) - January 1 40,979 53,176 Fund balance (deficit) - December 31 ($12,448) $40,979 2019 Budgeted Amounts 128 CITY OF ST. ANTHONY, MINNESOTA SPECIAL REVENUE FUND - 230 POLICE FORFEITURE FUND Statement 26 SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE - BUDGET AND ACTUAL For The Year Ended December 31, 2019 With Comparative Actual Amounts For The Year Ended December 31, 2018 2018 Original Final Actual Actual Revenues: Forfeiture and confiscation $2,750 $2,750 $11,205 $12,964 Investment income 425 425 1,436 491 Total revenues 3,175 3,175 12,641 13,455 Expenditures: Public safety: Current: Supplies 16,541 16,541 3,171 7,170 Other services and charges 4,000 4,000 - - Total expenditures 20,541 20,541 3,171 7,170 Revenues over (under) expenditures ($17,366) ($17,366)9,470 6,285 Fund balance - January 1 36,824 30,539 Fund balance - December 31 $46,294 $36,824 2019 Budgeted Amounts 129 CITY OF ST. ANTHONY, MINNESOTA SPECIAL REVENUE FUND - 225 RECYCLING FUND Statement 27 SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE - BUDGET AND ACTUAL For The Year Ended December 31, 2019 With Comparative Actual Amounts For The Year Ended December 31, 2018 2018 Original Final Actual Actual Revenues: Intergovernmental: Recycling grants $16,232 $16,232 $16,931 $16,150 Charges for services 4,025 4,025 4,017 4,282 Investment income 50 50 571 244 Total revenues 20,307 20,307 21,519 20,676 Expenditures: General government: Current: Personal services 11,035 11,035 11,005 10,081 Other services and charges 13,584 13,584 14,381 11,792 Total expenditures 24,619 24,619 25,386 21,873 Revenues over (under) expenditures ($4,312) ($4,312) (3,867) (1,197) Fund balance - January 1 19,128 20,325 Fund balance - December 31 $15,261 $19,128 2019 Budgeted Amounts 130 CITY OF ST. ANTHONY, MINNESOTA SPECIAL REVENUE FUND - 301 HRA FUND Statement 28 SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE - BUDGET AND ACTUAL For The Year Ended December 31, 2019 With Comparative Actual Amounts For The Year Ended December 31, 2018 2018 Original Final Actual Actual Revenues: General property taxes $170,254 $170,254 $167,476 $162,543 Refunds and reimbursements 500 500 857 1,131 Investment income 150 150 121 - Total revenues 170,904 170,904 168,454 163,674 Expenditures: Housing and redevelopment: Current: Personal services 123,476 123,476 123,149 117,269 Contractual services 29,100 29,100 37,863 31,697 Total expenditures 152,576 152,576 161,012 148,966 Revenues over expenditures $18,328 $18,328 7,442 14,708 Fund balance - January 1 63,641 48,933 Fund balance - December 31 $71,083 $63,641 2019 Budgeted Amounts 131 CITY OF ST. ANTHONY, MINNESOTA SPECIAL REVENUE FUND - 240 FIRE EDUCATION / TRAINING FUND Statement 29 SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE - BUDGET AND ACTUAL For The Year Ended December 31, 2019 With Comparative Actual Amounts For The Year Ended December 31, 2018 2018 Original Final Actual Actual Revenues: Charges for services $2,500 $2,500 $490 $2,717 Investment income - - 250 92 Miscellaneous 25 25 - - Total revenues 2,525 2,525 740 2,809 Expenditures: Public safety: Current: Personal services 1,000 1,000 160 600 Materials and supplies 850 850 - 635 Total expenditures 1,850 1,850 160 1,235 Revenues over expenditures $675 $675 580 1,574 Fund balance - January 1 6,744 5,170 Fund balance - December 31 $7,324 $6,744 2019 Budgeted Amounts 132 SUPPLEMENTARY FINANCIAL INFORMATION 133 CITY OF ST. ANTHONY, MINNESOTA BALANCE SHEET STREET IMPROVEMENT DEBT SERVICE FUND December 31, 2019 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 $1,293,501 $168,931 $140,562 $52,937 $60,632 $382,353 Due from other governmental units - - - - - - Property taxes receivable: Delinquent 3,045 963 1,021 615 781 799 Due from county 1,566 645 879 577 556 549 Special assessments receivable 61,205 - 69,404 20,230 58,804 180,448 Total assets $1,359,317 $170,539 $211,866 $74,359 $120,773 $564,149 Liabilities, Deferred Inflows of Resources, and Fund Balance Liabilities: Deposits payable $ - $ - $ - $ - $ - $ - Deferred inflows of resources: Unavailable revenue 64,250 963 70,133 20,845 59,585 181,247 Fund balance: Restricted 1,295,067 169,576 141,733 53,514 61,188 382,902 Total liabilities, deferred inflows of resources, and fund balance (deficit)$1,359,317 $170,539 $211,866 $74,359 $120,773 $564,149 134 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 2019 Street Improvement Bond Fund 2019 2018 $275,960 $216,117 $368,746 $285,689 $440,838 $390,473 $21,092 $4,097,831 $4,448,108 - - - - - - - - 25,000 498 896 874 614 1,031 772 - 11,909 13,679 395 685 619 925 997 1,306 - 9,699 19,353 102,453 131,411 219,440 77,669 274,170 353,645 - 1,548,879 1,869,543 $379,306 $349,109 $589,679 $364,897 $717,036 $746,196 $21,092 $5,668,318 $6,375,683 $ - $ - $3,257 $ - $ - $ - $ - $3,257 $3,127 102,951 132,307 220,314 78,283 275,201 285,878 - 1,491,957 1,895,923 276,355 216,802 366,108 286,614 441,835 460,318 21,092 4,173,104 4,476,633 $379,306 $349,109 $589,679 $364,897 $717,036 $746,196 $21,092 $5,668,318 $6,375,683 Street Improvement Debt Service Fund 135 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, 2019 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 $402,664 $147,274 $158,866 $95,010 $122,813 $123,539 Intergovernmental - - - - - - Special assessments 38,236 - 15,599 3,635 13,608 33,841 Investment income 30,262 2,254 380 521 2,300 9,270 Miscellaneous - - - - - - Total revenues 471,162 149,528 174,845 99,166 138,721 166,650 Expenditures: Public works: Professional service 132 27 339 213 238 1,276 Debt service: Principal 770,000 140,000 150,000 815,000 1,270,000 140,000 Interest 42,484 20,025 33,600 25,780 43,769 34,512 Paying agent fees 5,664 656 119 900 475 95 Issuance costs - - - 15,840 21,450 - Total expenditures 818,280 160,708 184,058 857,733 1,335,932 175,883 Revenues over (under) expenditures (347,118) (11,180) (9,213) (758,567) (1,197,211) (9,233) Other financing sources (uses): Bonds issued - - - - - - Refunding bonds issued - - - 565,000 770,000 - Premium on bonds issued - - - 54,841 82,024 - Transfers in 140,500 7,000 18,000 18,000 18,000 18,000 Total other financing sources (uses) 140,500 7,000 18,000 637,841 870,024 18,000 Net change in fund balance (206,618) (4,180) 8,787 (120,726) (327,187)8,767 Fund balance - January 1 1,501,685 173,756 132,946 174,240 388,375 374,135 Fund balance - December 31 $1,295,067 $169,576 $141,733 $53,514 $61,188 $382,902 136 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 2019 Street Improvement Bond Fund 2019 2018 $82,213 $144,197 $137,232 $103,126 $188,857 $177,751 $ - $1,883,542 $1,833,144 - - - - 57,114 - - 57,114 - 15,895 28,468 29,638 120,656 34,099 121,719 - 455,394 588,400 7,459 3,453 9,006 7,154 8,769 8,849 184 89,861 40,405 - - - - - - - - 475 105,567 176,118 175,876 230,936 288,839 308,319 184 2,485,911 2,462,424 1,231 1,269 1,431 1,206 1,803 925 - 10,090 2,586 115,000 130,000 160,000 90,000 145,000 - - 3,925,000 1,985,000 25,285 45,230 51,713 28,638 75,825 110,544 - 537,405 495,303 - 475 475 - 119 - - 8,978 4,056 - - - 475 - 475 - 38,240 450 141,516 176,974 213,619 120,319 222,747 111,944 0 4,519,713 2,487,395 (35,949)(856) (37,743) 110,617 66,092 196,375 184 (2,033,802) (24,971) - - - - - - 20,908 20,908 64,907 - - - - - - - 1,335,000 - - - - - - - - 136,865 - - 9,000 9,000 - - - - 237,500 366,596 0 9,000 9,000 0 0 0 20,908 1,730,273 431,503 (35,949)8,144 (28,743) 110,617 66,092 196,375 21,092 (303,529) 406,532 312,304 208,658 394,851 175,997 375,743 263,943 - 4,476,633 4,070,101 $276,355 $216,802 $366,108 $286,614 $441,835 $460,318 $21,092 $4,173,104 $4,476,633 Street Improvement Debt Service Fund 137 CITY OF ST. ANTHONY, MINNESOTA BALANCE SHEET Exhibit 3 HRA TIF DEBT SERVICE FUND December 31, 2019 With Comparative Totals For December 31, 2018 2015B G.O Tax Increment Refunding Bonds 2014B G.O Tax Increment Refunding Bonds 2019 2018 Assets Cash and investments $3,567 $2,659 $6,226 $7,537 Liabilities and Fund Balance Liabilities: Accounts payable $ - $ - $ - $ - Fund balance: Restricted 3,567 2,659 6,226 7,537 Total liabilities and fund balance $3,567 $2,659 $6,226 $7,537 HRA TIF Debt Service Fund Totals 138 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, 2019 With Comparative Totals For The Year Ended December 31, 2018 2015B G.O Tax Increment Refunding Bonds 2014B G.O Tax Increment Refunding Bonds 2019 2018 Revenues: Investment income $ - $ - $ - $ - Total revenues 0 0 0 0 Expenditures: Debt service: Principal 230,000 190,000 420,000 405,000 Interest 87,362 86,625 173,987 182,238 Paying agent fees 656 656 1,312 1,502 Total expenditures 318,018 277,281 595,299 588,740 Revenues over (under) expenditures (318,018) (277,281)(595,299)(588,740) Other financing sources (uses): Transfers in 317,363 276,625 593,988 587,237 Net change in fund balance (655)(656)(1,311)(1,503) Fund balance - January 1 4,222 3,315 7,537 9,040 Fund balance - December 31 $3,567 $2,659 $6,226 $7,537 HRA TIF Debt Service Fund Totals 139 CITY OF ST. ANTHONY, MINNESOTA BALANCE SHEET Exhibit 5 HRA TIF IMPROVEMENTS FUND December 31, 2019 With Comparative Totals For December 31, 2018 Chandler Apache Apache Place (Walmart) (Cub Foods)Eliminations 2019 2018 Assets Cash and investments $146,904 $1,529,675 $386,184 $ - $2,062,763 $1,450,168 Accounts receivable - net - 8,050 - 8,050 - Property taxes receivable: Delinquent - 12,706 - - 12,706 46,028 Due from county - 72,264 - - 72,264 18,995 Prepaid expenses - 204 - - 204 94,695 Interfund loan receivable 646,850 - 722,566 (1,369,416) - - Land held for resale - 370,356 - - 370,356 - Total assets $793,754 $1,993,255 $1,108,750 ($1,369,416) $2,526,343 $1,609,886 Liabilities, Deferred Inflows of Resources, and Fund Balance Liabilities: Accounts payable $ - $369,995 $ - $ - $369,995 $8,411 Contracts payable - - 6,987 - 6,987 20,188 Interfund loans payable - 2,328,742 - (1,369,416) 959,326 959,326 Total liabilities 0 2,698,737 6,987 (1,369,416) 1,336,308 987,925 Deferred inflows of resources: Unavailable revenue - 12,706 - - 12,706 46,028 Fund balance (deficit): Nonspendable - 204 - - 204 94,695 Restricted 793,754 - 1,101,763 - 1,895,517 1,871,386 Unassigned - (718,392) - - (718,392) (1,390,148) Total fund balance (deficit)793,754 (718,188) 1,101,763 0 1,177,329 575,933 Total liabilities, deferred inflows of resources, and fund balance (deficit) $793,754 $1,993,255 $1,108,750 ($1,369,416) $2,526,343 $1,609,886 Tax Increment Financing Districts Improvements Total HRA TIF 140 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, 2019 With Comparative Totals For The Year Ended December 31, 2018 Chandler Apache Apache Place (Walmart) (Cub Foods) 2019 2018 Revenues: Tax increment collections $ - $2,093,697 $ - $2,093,697 $1,861,251 Investment income 30,271 33,763 42,366 106,400 71,963 Refunds and reimbursements - 69,327 - 69,327 - Total revenues 30,271 2,196,787 42,366 2,269,424 1,933,214 Expenditures: General government - 124,713 - 124,713 23,303 Housing and redevelopment 3,681 - 4,317 7,998 11,289 Debt service: Interest - 93,150 - 93,150 93,150 Construction/acquisition costs - - 35,588 35,588 25,924 Developer incentives - 804,391 - 804,391 1,029,217 Total expenditures 3,681 1,022,254 39,905 1,065,840 1,182,883 Revenues over expenditures 26,590 1,174,533 2,461 1,203,584 750,331 Other financing sources (uses): Transfers out (1,640) (597,268) (3,280) (602,188) (595,107) Net change in fund balance 24,950 577,265 (819) 601,396 155,224 Fund balance (deficit) - January 1 768,804 (1,295,453) 1,102,582 575,933 420,709 Fund balance (deficit) - December 31 $793,754 ($718,188) $1,101,763 $1,177,329 $575,933 Tax Increment Financing Districts Improvements Total HRA TIF 141 CITY OF ST. ANTHONY, MINNESOTA BALANCE SHEET Exhibit 7 STREET IMPROVEMENT PROJECT FUND December 31, 2019 With Comparative Totals For December 31, 2018 2016 Street Improvement Project Fund 2018 Street Improvement Project Fund 2019 Street Improvement Project Fund 2020 Street Improvement Project Fund 2021 Street Improvement Project Fund 2019 2018 Assets Cash and investments $3,997 $188,978 $182,445 ($178,290) ($18,147) $178,983 $841,228 Accrued interest - - - - - - 4,506 Due from other governmental units 68,673 - 602,785 - - 671,458 88,331 Accounts receivable - net - 527 248 - - 775 - Total assets $72,670 $189,505 $785,478 ($178,290) ($18,147) $851,216 $934,065 Liabilities and Fund Balance Liabilities: Accounts payable $ - $ - $166 $45,376 $ - $45,542 $122,971 Contracts payable - 76,470 370,960 - - 447,430 337,282 Interfund payable - - - - - - 93,921 Total liabilities 0 76,470 371,126 45,376 0 492,972 554,174 Fund balance (deficit): Assigned 72,670 113,035 414,352 (223,666) (18,147) 358,244 379,891 Total liabilities and fund balance $72,670 $189,505 $785,478 ($178,290) ($18,147) $851,216 $934,065 Total Street Improvement Project Fund 142 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, 2019 With Comparative Totals For The Year Ended December 31, 2018 2016 Street Improvement Project Fund 2018 Street Improvement Project Fund 2019 Street Improvement Project Fund 2020 Street Improvement Project Fund 2021 Street Improvement Project Fund 2019 2018 Revenues: Intergovernmental $ - $45,492 $476,109 $ - $ - $521,601 $68,602 Special assessments - - - - - - 64,990 Investment income 186 13,272 2,528 - - 15,986 24,924 Contributions and donations - - - - - - 11,573 Refunds and reimbursements 6,683 - 121,769 - - 128,452 7,152 Miscellaneous 6,751 - - - - 6,751 7,500 Total revenues 13,620 58,764 600,406 0 0 672,790 184,741 Expenditures: Current: General government: - - - - - - 9,156 Debt service: Issuance costs - - 33,142 - - 33,142 63,123 Construction/acquisition costs 211 455,496 1,268,254 210,477 - 1,934,438 2,605,242 Total expenditures 211 455,496 1,301,396 210,477 0 1,967,580 2,677,521 Revenues over (under) expenditures 13,409 (396,732) (700,990) (210,477)0 (1,294,790) (2,492,780) Other financing sources (uses): Bonds issued - - 1,124,092 - - 1,124,092 2,545,093 Premium on bonds issued - - 89,051 - - 89,051 92,831 Transfers in 60,000 - - - - 60,000 226,794 Transfers out - - - - - - (103,596) Total other financing sources (uses) 60,000 0 1,213,143 0 0 1,273,143 2,761,122 Net change in fund balance 73,409 (396,732) 512,153 (210,477)0 (21,647) 268,342 Fund balance (deficit) - January 1 (739) 509,767 (97,801) (13,189) (18,147) 379,891 111,549 Fund balance (deficit) - December 31 $72,670 $113,035 $414,352 ($223,666) ($18,147) $358,244 $379,891 Total Street Improvement Project Fund 143 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, 2019 With Comparative Totals For The Year Ended December 31, 2018 Water/Water Plant Sewer 2019 2018 Operating revenues: Charges for services $997,332 $1,209,509 $2,206,841 $2,121,689 Connection charges 1,750 1,700 3,450 51,200 Total operating revenues 999,082 1,211,209 2,210,291 2,172,889 Operating expenses: Personal services 579,622 333,189 912,811 879,764 Supplies 240,619 9,749 250,368 256,513 Contracted services and other 104,389 33,439 137,828 168,643 Treatment charges (MCES) - 733,670 733,670 708,567 Other 172,823 23,304 196,127 206,020 Depreciation 505,366 107,969 613,335 578,149 Total operating expenses 1,602,819 1,241,320 2,844,139 2,797,656 Operating income (loss)($603,737) ($30,111) (633,848) (624,767) Nonoperating revenues (expenses): Investment income 56,952 24,620 Interest expense (11,059)(13,687) Miscellaneous income 29,466 9,858 Total nonoperating revenues (expenses)75,359 20,791 Income (loss) before capital contributions and transfers (558,489) (603,976) Capital contributions and transfers: Capital contributions 756,666 1,224,256 Transfers in - 49,967 Total capital contributions and transfers 756,666 1,274,223 Change in net position 198,177 670,247 Net position - January 1 16,669,114 15,998,867 Net position - December 31 $16,867,291 $16,669,114 Operations Totals 144 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 Tables 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. Tables 1-4 Revenue Capacity These tables contain information to help the reader assess the City’s most significant local revenue source, the property tax. Tables 5-8 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. Tables 9-12 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. Tables 13-14 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. Tables 15-17 Sources: Unless otherwise noted, the information in these tables is derived from the comprehensive financial reports for the relevant year. 145 CITY OF ST. ANTHONY, MINNESOTA NET POSITION BY COMPONENT Last Ten Fiscal Years (Accrual Basis of Accounting) 2010 2011 2012 Governmental activities: Net invested in capital assets $14,098,233 $15,334,754 $15,182,974 Restricted for: Debt service 4,372,871 4,263,706 4,741,115 Redevelopment activity - - - Pensions - - - Public safety 34,320 16,281 21,521 Unrestricted (1,339,821) (6,358,682) (5,566,910) Total governmental activities net position $17,165,603 $13,256,059 $14,378,700 Business-type activities: Net invested in capital assets $4,915,905 $4,767,233 $4,523,383 Restricted for: Debt service 120,000 - - Unrestricted 615,994 5,642,649 5,814,241 Total business-type activities net position $5,651,899 $10,409,882 $10,337,624 Primary government: Net invested in capital assets $19,014,138 $20,101,987 $19,706,357 Restricted for: Debt service 4,492,871 4,263,706 4,741,115 Redevelopment activity - - - Pensions - - - Public safety 34,320 16,281 21,521 Unrestricted (723,827) (716,033) 247,331 Total primary government net position $22,817,502 $23,665,941 $24,716,324 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 146 Table 1 2013 2014 2015 2016 2017 2018 2019 $16,217,013 $14,953,582 $10,604,121 $10,024,670 $10,274,946 $10,422,047 $9,746,635 3,347,895 5,717,140 6,147,172 6,282,913 6,537,390 7,097,594 6,339,750 - - 12,411 - - - - - - - 197,073 219,561 200,075 177,502 21,528 23,471 19,283 25,634 23,865 31,141 39,505 (5,239,277) (9,513,189) (10,391,885) 1,689,042 (5,330,379) (5,776,551) (4,223,098) $14,347,159 $11,181,004 $6,391,102 $18,219,332 $11,725,383 $11,974,306 $12,080,294 $5,605,845 $6,036,192 $12,143,158 $14,011,168 $22,151,578 $23,179,624 $24,525,702 - - - - - - - 5,965,067 5,570,360 5,649,685 3,171,781 3,529,653 3,483,257 3,569,879 $11,570,912 $11,606,552 $17,792,843 $17,182,949 $25,681,231 $26,662,881 $28,095,581 $21,822,858 $20,989,774 $22,747,279 $24,035,838 $32,426,524 $33,601,671 $34,272,337 3,347,895 5,717,140 6,147,172 6,282,913 6,537,390 7,097,594 6,339,750 - - 12,411 - - - - - - - 197,073 219,561 200,075 177,502 21,528 23,471 19,283 25,634 23,865 31,141 39,505 725,790 (3,942,829) (4,742,200) 4,860,823 (1,800,726) (2,293,294)(653,219) $25,918,071 $22,787,556 $24,183,945 $35,402,281 $37,406,614 $38,637,187 $40,175,875 Fiscal Year 147 CITY OF ST. ANTHONY, MINNESOTA CHANGES IN NET POSITION Last Ten Fiscal Years (Accrual Basis of Accounting) 2010 2011 (1)2012 Expenses Governmental activities: General government $1,310,199 $1,052,821 $1,307,007 Public safety 2,898,043 2,971,316 2,971,275 Public works 1,841,083 1,834,066 2,671,918 Parks and recreation 440,858 457,822 377,689 Services to other cities 1,016,479 1,039,009 1,039,504 Housing and redevelopment 654,145 671,934 649,104 Interest on long-term debt 1,290,844 1,302,681 1,197,073 Total governmental activities expenses 9,451,651 9,329,649 10,213,570 Business-type activities: Liquor 6,360,985 6,537,271 6,618,975 Water 826,352 874,099 901,732 Water Filtration and Purification - 132,981 114,337 Sewer 956,635 944,097 1,041,085 Stormwater - - - Total business-type activities expenses 8,143,972 8,488,448 8,676,129 Total primary government expenses $17,595,623 $17,818,097 $18,889,699 Program revenues Governmental activities: Charges for services: Services to other cities $1,157,190 $1,180,334 $1,192,138 Other activities 817,062 803,397 1,067,084 Operating grants and contributions 475,411 454,841 447,554 Capital grants and contributions 992,511 839,137 1,566,565 Total governmental activities program revenues 3,442,174 3,277,709 4,273,341 Business-type activities: Charges for services: Liquor 6,826,901 6,995,923 7,139,381 Water 785,642 798,240 957,824 Water filtration and purification - - - Sewer 789,872 779,513 877,794 Stormwater - - - Operating grants and contributions - - - Capital grants and contributions - - - Total business-type activities program revenues 8,402,415 8,573,676 8,974,999 Total primary government program revenues $11,844,589 $11,851,385 $13,248,340 Fiscal Year 148 Table 2 Page 1 of 2 2013 (2)2014 2015 2016 2017 2018 2019 $1,029,147 $1,116,100 $1,342,360 $1,319,451 $1,337,698 $1,234,274 $1,587,360 4,488,023 4,644,185 4,757,637 7,053,595 6,018,470 4,886,105 4,789,232 2,565,860 2,711,291 2,741,411 4,134,783 2,988,291 3,005,637 2,960,916 569,254 608,966 592,892 472,436 472,700 488,132 536,095 - - - - - - - 565,303 575,738 596,444 793,834 787,775 1,189,659 975,246 1,217,646 1,044,635 845,856 794,584 738,914 795,625 803,042 10,435,233 10,700,915 10,876,600 14,568,683 12,343,848 11,599,432 11,651,891 6,479,809 5,879,240 5,728,876 5,676,892 5,591,683 5,617,377 5,903,275 859,112 845,396 869,446 1,083,240 1,176,102 1,573,857 1,617,354 124,505 239,074 185,964 - - - - 1,019,421 1,069,876 1,051,261 1,048,937 1,144,273 1,243,591 1,253,102 - - - 191,655 244,135 249,911 308,786 8,482,847 8,033,586 7,835,547 8,000,724 8,156,193 8,684,736 9,082,517 $18,918,080 $18,734,501 $18,712,147 $22,569,407 $20,500,041 $20,284,168 $20,734,408 $ - $ - $ - $ - $ - $ - $ - 2,506,369 2,374,306 2,414,912 2,212,526 2,281,654 1,602,792 1,847,264 585,950 499,538 499,126 10,969,360 630,316 560,924 494,389 780,072 1,070,975 1,367,745 1,643,911 1,604,844 817,077 633,142 3,872,391 3,944,819 4,281,783 14,825,797 4,516,814 2,980,793 2,974,795 6,908,143 6,078,039 5,893,916 5,822,783 5,714,000 5,867,452 6,160,868 933,051 879,007 900,412 925,577 969,638 1,010,722 999,082 - - 45,655 - - - - 947,632 921,242 953,568 1,012,979 1,122,738 1,162,167 1,211,209 - - - 192,748 197,242 201,729 206,700 - - - 130,932 - - - - - - 1,166,747 569,716 126,991 - 8,788,826 7,878,288 7,793,551 9,251,766 8,573,334 8,369,061 8,577,859 $12,661,217 $11,823,107 $12,075,334 $24,077,563 $13,090,148 $11,349,854 $11,552,654 Fiscal Year 149 CITY OF ST. ANTHONY, MINNESOTA CHANGES IN NET POSITION Last Ten Fiscal Years (Accrual Basis of Accounting) 2010 2011 (1)2012 Net (expense) revenue: Governmental activities ($6,009,477) ($6,051,940) ($5,940,229) Business-type activities 258,443 85,228 298,870 Total primary government net (expense) revenue (5,751,034) (5,966,712) (5,641,359) General revenues and other changes in net position: Governmental activities: Taxes: Property taxes $4,750,440 $4,872,840 $5,408,188 Tax increment collections 1,807,388 1,746,766 1,335,674 Grants and contributions 22,827 24,673 10,639 Unrestricted investment earnings 224,693 6,803 55,206 Other 61,866 148,500 208,525 Gain on sale of capital assets - - 46,195 Transfers 478,000 595,200 610,000 Total governmental activities 7,345,214 7,394,782 7,674,427 Business-type activities: Unrestricted investment earnings (336) 52,659 122,833 Other 3,454 3,976 17,569 Transfers (478,000) (595,200) (610,000) Total business-type activities (474,882) (538,565) (469,598) Total primary government $6,870,332 $6,856,217 $7,204,829 Change in net position: Governmental activities $1,335,737 $1,342,842 $1,734,198 Business-type activities (216,439) (453,337) (170,728) Total primary government $1,119,298 $889,505 $1,563,470 (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 150 Table 2 Page 2 of 2 2013 (2)2014 2015 2016 2017 2018 2019 ($6,562,842) ($6,756,096) ($6,594,817) $257,114 ($7,827,034) ($8,618,639) ($8,677,096) 305,979 (155,298) (41,996) 1,251,042 417,141 (315,675) (504,658) (6,256,863) (6,911,394) (6,636,813) 1,508,156 (7,409,893) (8,934,314) (9,181,754) $5,703,707 $6,030,558 $5,893,900 $6,160,156 $6,577,570 $7,128,703 $7,477,523 1,405,872 1,131,896 1,121,627 1,455,090 1,530,093 1,870,589 2,060,375 26,384 461,964 516,015 530,110 535,422 559,437 561,062 25,914 189,441 146,023 254,396 234,572 286,519 492,834 389,785 104,113 172,913 1,207,375 407,269 225,774 15,468 - 33,204 7,653 7,151 34,775 48,529 - (809,238) (17,982) (6,053,216) 1,956,838 (7,986,616) (1,251,989) (1,824,178) 6,742,424 7,933,194 1,804,915 11,571,116 1,333,085 8,867,562 8,783,084 51,593 111,512 86,407 31,097 21,812 32,771 83,886 66,478 61,444 88,664 64,805 72,713 12,565 29,294 809,238 17,982 6,053,216 (1,956,838) 7,986,616 1,251,989 1,824,178 927,309 190,938 6,228,287 (1,860,936) 8,081,141 1,297,325 1,937,358 $7,669,733 $8,124,132 $8,033,202 $9,710,180 $9,414,226 $10,164,887 $10,720,442 $179,582 $1,177,098 ($4,789,902) $11,828,230 ($6,493,949) $248,923 $105,988 1,233,288 35,640 6,186,291 (609,894) 8,498,282 981,650 1,432,700 $1,412,870 $1,212,738 $1,396,389 $11,218,336 $2,004,333 $1,230,573 $1,538,688 Fiscal Year 151 CITY OF ST. ANTHONY, MINNESOTA FUND BALANCES - GOVERNMENTAL FUNDS Last Ten Fiscal Years (Modified Accrual Basis of Accounting) 2010 2011 2012 General Fund: Reserved $57,430 $ - $ - Unreserved 1,567,270 - - Nonspendable - 55,271 68,481 Unassigned - 1,647,566 1,906,856 Total general fund $1,624,700 $1,702,837 $1,975,337 All other governmental funds: Reserved $4,625,111 $ - $ - Unreserved, reported in: Special revenue funds 5,212,683 - - Capital projects funds 243,408 - - Nonspendable - 132 129 Restricted - 6,868,120 8,594,337 Committed - 210,953 222,184 Assigned - 763,667 1,344,529 Unassigned - (1,240,578) (1,473,482) Total all other governmental funds $10,081,202 $6,602,294 $8,687,697 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 152 Table 3 2013 2014 2015 2016 2017 2018 2019 $ - $ - $ - $ - $ - $ - $ - - - - - - - - 74,049 91,136 107,412 115,482 119,651 126,304 101,105 2,074,490 2,384,345 2,338,600 2,204,185 2,280,463 2,381,460 2,489,685 $2,148,539 $2,475,481 $2,446,012 $2,319,667 $2,400,114 $2,507,764 $2,590,790 $ - $ - $ - $ - $ - $ - $ - - - - - - - - - - - - - - - 49 1,631 2,157 57,188 15,339 97,687 1,451 2,002,737 7,627,714 6,491,789 6,907,253 7,002,918 7,466,883 7,176,386 33,015 78,180 94,107 105,503 125,069 124,355 102,948 1,253,470 1,318,583 578,258 13,148,229 6,568,756 5,374,785 5,502,668 (175,561) (2,407,745) (2,062,163) (1,693,729) (1,452,918) (1,409,874) (892,137) $3,113,710 $6,618,363 $5,104,148 $18,524,444 $12,259,164 $11,653,836 $11,891,316 Fiscal Year 153 CITY OF ST. ANTHONY, MINNESOTA CHANGES IN FUND BALANCES - GOVERNMENTAL FUNDS Last Ten Fiscal Years (Modified Accrual Basis of Accounting) 2010 2011 (1) 2012 2013 (2) Revenues: General property taxes $4,787,076 $4,877,268 $5,416,328 $5,657,416 Tax increment collections 1,911,678 1,708,873 1,364,881 1,398,000 Licenses, fees and permits 224,096 195,563 290,985 342,390 Intergovernmental 1,239,053 861,744 1,530,983 792,477 Special assessments 398,895 517,678 427,467 587,191 Charges for services 1,528,210 1,573,975 1,736,274 1,932,268 Cable franchise fees 92,786 96,608 101,403 104,089 Fines and forfeits 128,165 117,835 130,560 129,363 Investment income 224,598 6,792 55,201 24,197 Contributions and donations 2,834 610 2,778 16,134 Miscellaneous 708,181 148,500 194,052 375,719 Total revenues 11,245,572 10,105,446 11,250,912 11,359,244 Expenditures: Current: General government 1,170,630 883,478 1,059,361 836,190 Public safety 2,615,752 2,700,328 2,671,890 4,174,754 Public works 726,064 684,761 818,851 1,042,876 Parks and recreation 388,808 366,153 344,702 420,826 Services to other cities 1,016,479 1,039,009 1,039,504 - Nondepartmental 6,940 22,283 160,513 56,117 Housing and redevelopment 183,513 227,921 240,097 150,070 Capital outlay: General government - 12,661 46,588 8,157 Public safety 67,850 152,405 130,000 5,792 Public works 212,029 112,158 170,056 270,443 Parks and recreation - - - - Debt service: Principal retirement 4,255,000 3,120,000 4,255,000 4,245,000 Interest 1,392,608 1,271,549 1,299,266 1,308,344 Paying agent fees 8,763 11,582 18,811 16,387 Professional service 3,117 30,109 3,480 6,682 Issuance costs - 67,278 132,217 66,035 Construction/acquisition costs 2,420,767 1,953,923 2,253,448 1,618,986 Developer incentives 470,632 444,013 409,007 415,233 Total expenditures 14,938,952 13,099,611 15,052,791 14,641,892 Revenues over (under) expenditures (3,693,380)(2,994,165)(3,801,879)(3,282,648) Other financing sources (uses): Bonds issued 1,375,000 1,940,000 2,195,000 1,775,000 Refunding bonds issued - 3,225,000 7,300,000 - Redemption of refunded bonds - (1,030,000) - - Payment to refunded bond escrow agent - - (4,015,373) - Premium on debt issued 402 105,598 190,221 42,080 Sale of capital assets 15,347 9,982 10,962 25,244 Transfers in 3,634,584 1,603,430 1,626,372 2,021,913 Transfers out (3,156,584)(1,008,230)(1,016,372)(1,482,913) Total other financing sources(uses)1,868,749 4,845,780 6,290,810 2,381,324 Net change in fund balance ($1,824,631)$1,851,615 $2,488,931 ($901,324) Debt service as a percentage of noncapital expenditures 46.1%40.4%44.6%43.6% Debt service as percentage of total expenditures 37.8%33.5%36.9%37.9% (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 154 Table 4 2014 2015 2016 2017 2018 2019 $6,053,119 $5,897,070 $6,161,036 $6,633,308 $7,107,947 $7,484,962 1,117,824 1,106,582 1,476,275 1,541,874 1,861,251 2,093,697 351,102 296,465 304,079 358,230 295,955 268,565 1,464,479 1,644,481 2,283,016 1,925,460 1,136,456 1,595,355 491,988 621,931 570,549 589,332 658,532 463,256 1,787,611 1,879,520 1,701,246 1,732,288 1,097,940 1,153,385 109,009 108,104 113,672 115,079 101,612 97,200 126,584 130,823 93,529 76,057 85,538 96,292 189,216 145,447 252,830 233,668 284,452 485,833 45,640 15,903 4,120 102,340 16,046 1,550 104,113 172,913 11,637,694 407,269 217,071 253,239 11,840,685 12,019,239 24,598,046 13,714,905 12,862,800 13,993,334 926,501 948,089 1,066,236 1,119,746 1,048,214 1,327,603 4,357,563 4,352,048 5,164,270 5,346,521 4,861,358 4,698,695 1,001,378 1,043,791 1,051,747 1,034,427 1,208,232 1,071,071 463,057 446,684 409,979 406,748 431,091 474,430 - - - - - - 59,265 40,139 38,421 45,095 61,262 78,233 143,863 119,294 156,312 132,437 160,255 169,010 38,826 168,176 8,201 - 102,507 - 283,189 150,645 256,053 111,041 603,056 - 53,143 67,831 134,590 320,470 331,854 136,764 49,464 - - - - 28,817 7,785,000 3,750,000 2,620,000 5,815,000 2,895,000 4,910,000 1,139,216 1,020,262 820,607 846,526 887,798 897,980 7,853 10,386 14,793 5,760 29,308 11,822 17,104 16,971 16,339 6,677 2,823 - 185,800 142,682 80,294 104,887 42,563 71,382 2,959,264 3,750,269 4,867,870 9,908,037 2,720,619 1,970,296 431,875 475,886 627,639 649,910 1,029,217 804,391 19,902,361 16,503,153 17,333,351 25,853,282 16,415,157 16,650,494 (8,061,676)(4,483,914)7,264,695 (12,138,377)(3,552,357)(2,657,160) 2,070,000 2,580,000 2,900,000 3,120,000 2,610,000 1,145,000 4,970,000 4,310,000 - 2,190,000 - 1,335,000 - - - - - - - (4,332,935) - - - - 158,044 188,693 69,485 302,540 92,831 225,916 13,390 25,860 15,186 28,244 64,754 23,050 1,908,166 2,069,259 4,003,953 312,760 287,094 335,000 (1,514,667)(1,900,647)(959,368) - - (86,300) 7,604,933 2,940,230 6,029,256 5,953,544 3,054,679 2,977,666 ($456,743)($1,543,684)$13,293,951 ($6,184,833)($497,678)$320,506 54.2%36.5%25.7%41.5%29.8%40.1% 44.8%28.9%19.8%25.8%23.0%34.9% Fiscal Year 155 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 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% 2019 8,962,344 2,362,141 119,600 11,444,085 (1,027,837) 10,416,248 70.22% 1,023,687,200 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. 156 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 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% 2019 70.22% 36.01% 10.63% 41.86% 158.73% 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* 157 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 $700,330 1 6.12% 899,438 1 8.74% St. Anthony Leased Housing 529,814 2 4.63% 364,550 2 3.54% Assoc. I Autumn Woods Partners LP 266,338 3 2.33% 205,800 3 2.00% L/L Equinox Associates LLC 260,974 4 2.28% 179,550 4 1.74% St. Anthony Leased Housing 164,344 5 1.44% Assoc. II St. Anthony Shopping Center 163,330 6 1.43% 98,252 6 0.95% Xcel Energy 135,732 7 1.19% Autumn Woods III LLC 127,850 8 1.12% Landau - 3925 Pleasant LLC 102,873 9 0.90% 82,808 8 0.80% Chandler Place LP 100,313 10 0.88% 82,329 10 0.80% Northern Gopher Enterprises Inc 105,345 5 1.02% LG Anderson LLC/Apache Medical 89,250 7 0.87% St. Anthony Nursing Home LP 82,449 9 0.80% Total $2,551,898 22.32% $2,189,771 21.26% Total All Property $11,444,085 $10,289,761 Source: Official Statements for the City of St. Anthony 20102019 158 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 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%(17,002) 6,784,702 99.05% 2019 7,311,453 7,226,085 98.83% (1) Net of Market Value Homestead Credit which was subject to State unallotments or other reductions. Sources: St. Anthony Finance Department Not Available Fiscal Year of the Levy Collected Within The Total Collections to Date 159 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 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 2019 18,330,000 755,000 6,240,000 1,850,000 - 1,280,000 - 28,455,000 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 160 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* 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 8.12% 3,500 273.18% 715,000 - 715,000 311 29,170,000 Not Available Business-Type Activities 161 - This page intentionally left blank - 162 CITY OF ST. ANTHONY, MINNESOTA DIRECT AND OVERLAPPING GOVERNMENTAL ACTIVITIES DEBT Table 10 As of December 31, 2019 Estimated Estimated Share of Debt Percentage Overlapping Governmental Unit Outstanding Applicable* Debt Debt repaid with property taxes: (1) School Districts: ISD No. 282 $30,205,000 85.7350% $25,896,257 Counties: Hennepin 1,058,135,000 0.3715% 3,930,972 Ramsey 146,685,000 0.4894% 717,876 Other: Metropolitan Council 240,785,000 0.2440% 587,515 Three Rivers Park District 53,385,000 0.5280% 281,873 Subtotal - overlapping debt 31,414,493 City direct debt (2)28,455,000 Total direct and overlapping debt $59,869,493 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. 163 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 2010 2011 2012 Debt limit $23,262,423 $22,184,277 $21,518,115 Total net debt applicable to limit 5,059,006 4,708,301 4,902,237 Legal debt margin $18,203,417 $17,475,976 $16,615,878 Total net debt applicable to the limit as a percentage of debt limit 21.75% 21.22% 22.78% Source: Market Value - Hennepin County and Ramsey County, Minnesota Assessor's Offices Legal Debt Margin Calculation for Fiscal Year 2019 164 Table 11 $1,023,687,200 30,710,616 3,075,000 (824,814) 2,250,186 $28,460,430 2013 2014 2015 2016 2017 2018 2019 $20,237,210 $20,226,682 $21,500,127 $24,651,217 $26,027,076 $27,507,354 $30,710,616 4,450,131 4,031,063 3,615,981 3,176,798 3,244,392 2,742,846 2,250,186 $15,787,079 $16,195,619 $17,884,147 $21,474,419 $22,782,684 $24,764,508 $28,460,430 21.99% 19.93% 16.82% 12.89% 12.47%9.97%7.33% Legal Debt Margin Calculation for Fiscal Year 2019 165 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 2010 $150,431.00 - $150,431.00 $130,000.00 $28,575.00 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 - - - - - - 2019 - - - - - - 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 166 Table 12 Page 1 of 2 Utility Less Net Service Operating Available Charges Expenses Revenue Principal Interest Coverage $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%) 2,210,291 2,230,804 (20,513) 130,000 15,600 (14%) Water and Sewer Revenue Bonds Debt Service 167 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 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 2019 1,546,023 1,201,192 344,831 - - 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 168 Table 12 Page 2 of 2 Special Tax Assessment Increment Collections Principal Interest Coverage Collections Principal Interest Coverage $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% 463,256 2,620,000 629,069 14% 2,093,697 420,000 173,988 352% Debt Service Tax Increment BondsImprovement Bonds Debt Service 169 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) 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 9,067 380,152,109 41,927 2.50% 2019 Not Available 2.60% 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 170 CITY OF ST. ANTHONY, MINNESOTA PRINCIPAL EMPLOYERS Table 14 Current Year and Nine Years Ago Employer Employees Rank Employees Rank ISD No. 282 (St. Anthony - New Brighton) 370 1 225 4 Cub Foods 250 2 250 2 St. Anthony Health Center/Chandler Place 199 3 293 1 B&F Fastener Supply 100 4 - - City of St. Anthony 99 5 132 5 St. Charles Borromeo Parish 92 6 - - Happy's Potato Chip Company 55 7 50 8 Marshall Manufactruing 54 8 40 9 Village Pub 35 9 - - North Memoral - Silver Lake Clinic 32 10 - - Wal-Mart - - 249 3 Triangle Industries - - 80 6 Industrial Custom Products - - 50 7 Culver's - - 37 10 Total 1,286 1,406 Source: Official Statements for the City of St. Anthony 20102019 171 CITY OF ST. ANTHONY, MINNESOTA FULL-TIME EQUIVALENT CITY GOVERNMENT EMPLOYEES BY FUNCTION/PROGRAM Last Ten Fiscal Years Function/Program 2010 2011 2012 2013 General government: Administration 3.00 3.00 2.00 2.00 Finance 4.75 4.50 4.25 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 5.00 6.00 6.00 Park 3.00 3.00 3.00 3.00 Water/Sewer 2.00 2.00 2.00 2.00 Mechanic 1.00 1.00 1.00 1.00 Seasonal 2.00 2.00 2.00 2.00 Liquor operations: Off-sale: Full-time 5.00 5.00 5.00 5.00 Market Place - part-time 6.00 6.00 6.00 6.00 Silver Lake Village - part-time 6.00 6.00 6.00 6.00 Total 89.25 88.00 87.75 87.75 Source: City of St. Anthony Full-Time Equivalent Employees as of December 31, 172 Table 15 2014 2015 2016 2017 2018 2019 2.00 2.00 2.50 2.50 2.60 2.85 4.25 4.50 4.00 4.00 4.00 4.00 23.00 23.00 23.00 20.00 20.00 20.00 2.50 2.50 2.50 2.50 2.00 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 6.00 6.00 6.00 6.00 4.50 4.50 4.50 4.65 4.65 6.00 4.50 4.00 4.00 4.25 4.25 87.75 85.00 84.50 82.50 82.50 82.75 Full-Time Equivalent Employees as of December 31, 173 CITY OF ST. ANTHONY, MINNESOTA OPERATING INDICATORS BY FUNCTION/PROGRAM Last Ten Fiscal Years Function/Program 2010 2011 2012 2013 Police: * Moving violation 2,305 1,848 1,851 2,068 Non-moving violations 397 210 200 396 DWI 49 44 39 34 Traffic arrests 600 673 578 679 Gross and misdemeanor arrests 129 145 164 244 Felony arrests 29 46 37 67 Warrant arrests 28 28 20 23 Fire: Emergency responses 1,203 1,221 1,267 1,409 Medical responses 895 894 933 1,016 Fires 34 35 40 26 Inspections 97 121 116 88 Building inspection: Permits issued 315 336 272 303 Other public works: Street reconstruction/resurfacing (miles) 1 2 1 1 Potholes filled (tons) 22 100 84 39 Water: New connections 7 1 39 122 Water mains breaks 11 10 10 7 Average daily consumption (thousands of gallons) 806 821 884 822 Peak daily consumption (thousands of gallons) 1,396 1,586 1,879 1,724 * Police statistics are for St Anthony only Source: City of St. Anthony Fiscal Year 174 Table 16 2014 2015 2016 2017 2018 2019 2,017 2,213 1,488 846 1,376 1,308 321 197 192 65 394 376 39 23 15 21 39 43 633 661 469 249 292 371 130 77 50 63 86 108 53 44 51 20 59 36 25 24 13 20 22 41 1,363 1,425 1,534 1,621 1,521 1,538 1,012 1,062 1,113 1,166 1,116 1,140 26 26 14 17 16 17 256 238 173 216 210 247 288 533 342 292 261 255 12110.51.2 34 66 23 198 64 53 28 7 1 29 30 3 882786 763 770 715 731 759 702 1,635 1,571 1,153 1,453 1,764 1,642 Fiscal Year 175 CITY OF ST. ANTHONY, MINNESOTA CAPITAL ASSET STATISTICS BY FUNCTION/PROGRAM Last Ten Fiscal Years Function/Program 2010 2011 2012 2013 Police: Stations 1 1 1 1 Fleet units 13 13 14 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)11.1 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 1 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 176 Table 17 2014 2015 2016 2017 2018 2019 111111 14 14 14 13 13 13 111111 888888 24.7 24.7 24.7 24.7 24.7 24.7 11.1 11.1 11.6 12.3 12.3 12.6 40 40 40 40 40 40 444444 777777 222222 111111 111111 222222 222222 333333 222222 24.7 24.7 24.7 24.7 24.7 24.7 287 287 288 288 288 288 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 122222 666666 15.0 15.0 15.0 15.0 15.0 15.0 Fiscal Year 177 - This page intentionally left blank - 178