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HomeMy WebLinkAbout3. Presentation of 2003 Audit Report #;}-/ CITY OF SHAKO PEE Memorandum TO: Mayor and Council Mark McNeill, City Administrator FROM: Gregg Voxland, Finance Director SUBJ: Comprehensive Annual Financial Report DATE: June 22, 2004 Introduction & Background Council has retained the firm of Kern, DeWenter and Viere to audit the financial records of the City of Shakopee for 2003. Steve Wischmann (Partner) will be at the meeting on June 29th to present their report. The report is due to the State Auditors Office and the Government Finance Officers Association on June 30th. The report has a new format to implement Governmental Accounting Standards Board #34. This focuses the information more on the whole city entity versus a series of individual funds and includes infrastructure (mainly roads in the City of Shakopee's case) as assets being depreciated. There is nothing reportable as needing management or Council's attention other than the standard comment on diversification of accounting duties that is limited by the size of staff. Financially, there is nothing remarkable about 2003 compared to previous years. General Fund has a surplus of $2,110,739 after the transfer out to the Building Fund of $1,000,000. Due to the reaction to state aid cuts and conservative spending, the budget was under spent by $861,051. Development fees and conservative budgeting were largely responsible for revenues exceed the estimate by $1,622,722. Inspection was the only division exceeding its budget in the amount $12,450 due to payments to the Electrical Inspector which are offset by revenues. The attached report is only a draft that is in the process of being refined. On the whole, the information is pretty complete. Mr. Wischmann will have the final report with him for the meeting. Action Move to accept the auditor's report. Gregg Voxland Finance Director C,\gregg\memo\ DRAFT COMPREHENSIVE ANNUAL FINANCIAL REPORT OF THE CITY OF SHAKOPEE, MINNESOTA For the Year Ended December 31,2003 Prepared by THE DEPARTMENT OF FINANCE Gregg M Voxland, Finance Director CITY OF SHAKOPEE 129 Holmes Street South Shakopee, Minnesota 55379 MEMBER OF GOVERNMENT FINANCE OFFICERS ASSOCIATION OF THE DmTED STATES AND CANADA CITY OF SHAKOPEE Scott County, Minnesota TABLE OF CONTENTS Page INTRODUCTORY SECTION Elected Officials and Administration............................................................................... 3 Organizati on Chart........................................................................................................... 4 City Map. ......................................................................................................................... 5 Letter of Transmittal................................. .'...................................................................... 7 Certificate of Achievement for Excellence in Financial Reporting................................. 11 FINANCIAL SECTION Independent Auditors' Report.......................................................................................... 13 Management's Discussion and Analysis.......................................................................... 15 Basic Financial Statements: Government-wide Financial Statements: Statement of Net Assets....................................................................................... 29 Statement of Activities................................................... ...................................... 30 Fund Financial Statements: Balance Sheet - Governmental Funds ................................................................. 31 Reconciliation ofthe Balance Sheet to the Statement of Net Assets - Governmental Funds...................................................... ................................... 32 Statement of Revenues, Expenditures, and Changes in Fund Balances- Governmental Funds............................... ................................. ......................... 33 Reconciliation ofthe Statement of Revenues, Expenditures and Changes in Fund Balances of Governmental Funds to the Statement of Activities ........ 34 Statement of Net Assets - Proprietary Fund........................................................ 35 Statement of Revenues, Expenses, and Changes in Fund Net Assets- Proprietary Funds.............................................................................................. 36 Statement of Cash Flows - Proprietary Funds ..................................................... 37 Statement of Fiduciary Net Assets....................................................................... 38 Statement of Changes in Assets and Liabilities - Escrow Agency Fund............. 39 Notes to the Financial Statements .................................. ............................................ 41 Combining and Individual Fund Statements and Schedules: Combining Balance Sheet - Nonmajor Governmental Funds ................................... 71 Combining Statement of Revenues, Expenditures and Changes in Fund Balances - Nonmajor Governmental Funds .............;............................................. 74 1 CITY OF SHAKOPEE Scott County, Minnesota TABLE OF CONTENTS Table Page FINANCIAL SECTION (CONTINUED) Schedules of Revenues, Expenditures and Changes in Fund Balance - Budget and Actual: General........................................................ ...... ................ ................. ................. ....... 77 Transit.................................................................................................................... .... 79 Telecommunication............................ .................. ............................. ......................... 80 Economic Development Authority................................................................... ......... 81 Combining Statement of Fund Net Assets - Internal Service Funds............................... 82 Combining Statement of Revenues, Expenses and Changes in Fund Net Assets - Internal Service Funds .................................................................................................. 83 Combining Statement of Cash Flows - Internal Service Funds ...................................... 84 STATISTICAL SECTION General Fund Expenditures by Function,.............. .............. ......................... .................... 1 85 General Fund Revenues by Source .................................................................................. 2 86 Property Tax Levies and Collections.............. ........... ........................... ........................... 3 87 Tax Capacity and Estimated Market Value of All Taxable Property.............................. 4 88 Tax Rates and Tax Levies - Direct and Overlapping Governments................................ 5 89 Special Assessment Billings and Collections .... ....................... ............ ............ ............... 6 90 Ratio of Net General Bonded Debt to Assessed Value and Net Bonded Debt Per Capita........................................................................................................................... . 7 91 Computation of Direct and Overlapping Debt...................................,............................. 8 92 Ratio of Annual Debt Service Expenditures for General Bonded Debt to Total General Fund Expenditures........................................................................................... 9 93 Schedule of Revenue Bond Coverage.............................................................................. 10 94 Computation of Legal Debt Margin ................................................................................. 11 95 Demographic Statistics.................................................................................................... 12 96 Property Value and Construction ......... ............................................................................ 13 97 Ten Principal Taxpayers in the City of Shakopee............................................................ 14 98 Insurance Coverage.......................................................................................................... 15 99 Principal Officials and Surety Bonds .......................... ....................................... .............. 16 100 Miscellaneous Statistical Data. .......... .......................... .................................................... 17 101 2 CITY OF SHAKOPEE Scott County, Minnesota ELECTED OFFICIALS AND ADMINISTRATION December 31,2003 Elected Officials Position Term of William Mars Mayor December 31, 2003 Joseph Helkamp Councilmember December 31, 2003 Terry J oos Councilmember December 31, 2005 Matthew Lehman Councilmember December 31, 2003 Cletus Link Councilmember December 31, 2003 Administration Mark H. McNeill City Administrator Gregg M. V oxland Finance Director 3 CITY OF SHAKOPEE Scott County, Minnesota ORGANIZATION CHART December 31, 2003 4 CITY OF SHAKOPEE Scott County, Minnesota CITY MAP December 31,2003 5 May 23, 2004 To the Honorable Mayor, Members ofthe City Council, and Citizens of the City of Shakopee: State law requires that all general-purpose local governments publish within six months ofthe close of the fiscal year, a complete set of financial statements presented in conformity with generally accepted accounting principles (GAAP) and audited in accordance with generally accepted auditing standards by a firm oflicensed certified public accountants. Pursuant to that requirement, we hereby issue the comprehensive annual financial report of the City of Shakopee for the fiscal year ended December 31, 2003. The report consists of the city's management team representations concerning the finances of the City of Shako pee (City). Consequently, management assumes full responsibility for the completeness and reliability of all ofthe information presented in this report. To provide a reasonable basis for making these representations, management of the City has established a comprehensive internal control framework that is designed both to protect the government's assets from loss, theft, or misuse and to compile sufficient reliable information for the preparation of the City's financial statements in conformity with GAAP. Because the cost of internal controls should not outweigh their benefits, the City's comprehensive framework of internal controls has been designed to provide reasonable rather than absolute assurance that the financial statements will be free from material misstatement. As management, we assert that, to the best of our knowledge and belief, this financial report is complete and reliable in all material respects. The City of Shakopee' s financial statements have been audited by Kern, DeW enter, Viere, Ltd., a firm of licensed certified public accountants. The goal of the independent audit was to provide reasonable assurance that the financial statements of the City for the fiscal year ended December 31, 2003, are free of material misstatement, and to comply with state law requiring such an audit. The independent audit involved examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements; assessing the accounting principles used and significant estimates made by management; and evaluating the overall financial statement presentation. The independent auditor concluded, based on the audit, that there was a reasonable basis for rendering an unqualified opinion that the City's financial statements for the fiscal year ended December 31, 2003, are fairly presented in conformity with GAAP. The independent auditor's report is presented as the first component ofthe financial section ofthis report. Management is providing a narrative introduction, overview, and analysis to accompany the basic financial statements in the form of 'Management's Discussion and Analysis' (MD&A). This letter oftransmittal is designed to complement the MD&A and should be read in conjunction with the MD&A. 7 PROFILE OF THE GOVERNMENT The City of Shakopee was incorporated for a second time in 1870 and is located about 20 miles southwest of Minneapolis. Bounded by the Minnesota River on the north, Shakopee is in the northern part of Scott County and is the county seat. The City is one of the most rapidly growing areas ofthe state. The 2000 population ofthe City was 20,568 and the land area covered is approximately 29 square miles. The City is empowered to levy a property tax on both real and personal property located within its boundaries. It is also empowered by state statute to extend its corporate limits by annexation, which occurs periodically. Shakopee is organized in Minnesota under Plan A, which includes a City Administrator, but the City Council retains most decision making authority such as policy setting, adopting ordinances, budget adoption and staffing. The City Council has four members who serve staggered terms of four years plus the Mayor who serves a two-year term. All council positions are non-partisan, part-time and members are elected at large. The City provides the normal municipal services such as police and fire protection, street and infrastructure construction and maintenance, parks and recreation, planning and zoning. Also provided are electrical distribution, water, sewer and storm drainage utilities, organized refuse collection and recycling, and some transit services. Electric and water utilities are run by Shakopee Public Utilities Commission which is appointed by the City Council and is included as an integral part of the City's report. Housing, economic development and redevelopment are controlled by the Shakopee Economic Development Authority. The Authority is comprised of City Council members and is included as an integral part ofthe City's report. The annual budget is the basis for the City's financial planning and control. Budget requests from divisions are submitted by the last week in July and are prepared by fund and division. The City Administrator reviews the submittals and presents City Council with a proposed budget in August of each year. City Council is required to adopt a maximum tax levy by September 15. Final tax levy and budget are adopted in December after a public hearing. Budgeting control is provided by an annual budget resolution passed by City Council (or EDA as appropriate). Formal control is at the division level and Council action is necessary to change budgeted amounts between divisions and/or funds. The Finance Director or City Administrator may make changes within divisions. Along with the operating budget, a five-year capital improvement plan and major equipment list is also prepared annually. Budget-to-actual comparisons are provided in this report for each individual governmental fund for which. an appropriated annual budget has been formally adopted. FACTORS AFFECTING FINANCIAL CONDITION The information presented in the financial statements is perhaps best understood when it is considered from the broader perspective ofthe specific environment within which the City of Shakopee operates. Local economy. The City currently has favorable economic environment and local indicators point to continued growth. The tax base grew 14% for taxes payable in 2004 and 16% for taxes payable in 2003. The City has traditionally had a strong industrial base with commercial/industrial property currently comprising 29% of market value and 38% oftax capacity. The largest commercial/industrial taxpayer comprises 3% oftotal tax capacity. 8 Companies in the City manufacture chemicals, malt, roofing products, glass, cardboard and electronics with electronics being the rapidly growing industry in recent years. Housing has grown rapidly over the eight years following the opening of the new Highway 169 bridge over the Minnesota River. Population estimates have increased 40% over the last four years. Other governmental units with a significant presence in the City include the State of Minnesota Women's Correctional Facility, Scott County Courthouse, Independent School District 720 and federal wildlife/refuge areas. Long-term financial planning. About every year, the City issues bonds to fund infrastructure expansion and additions for the growing population. Much ofthis debt is funded by special assessments against benefited properties. The Public Utilities Commission is planning a series of bond issues over the next ten years to fund expansions of the water and electric systems. The City has built a new library and police station and is planning on building a new public works building, city hall, and two satellite fire stations over the next six years. The cost is in the range of 16 million dollars. It is anticipated the only debt for these projects will be for the public works building and two fire stations. The Shakopee Public Utilities Commission has a new service center under construction. The City of Shakopee annually prepares an updated five-year capital improvement plan and five year equipment list. City Council is also embarking on a long-term growth study that would examine the anticipated growth of the city over the next 20 to 40 years. Cash management policies and practices. Cash temporarily idle during the year was invested in commercial paper or securities back by the U.S. Government such as treasuries and agencies or pools that invest in such securities. The maturities of the investments range from less than 30 days t07 years. The majority of the portfolio is managed by anindependent investment manager. The manager is required to follow the City's Investment Policy. Risk management. The City has third party insurance coverage for all significant risks. The City has the exposure for deductibles under the various policies. Deductibles are $5,000 or less. Pension and other post employment benefits. All full-time and certain part-time employees of the City of Shakopee are covered by defined benefit plans administered by the Public Employees Retirement Association of Minnesota (PERA). PERA administers the Public Employees Retirement Fund (PERF) and the Public Employees Police and Fire Fund (PEPFF). These are cost sharing, multiple-employer retirement plans. These plans are established and administered in accordance with Minnesota Statutes, Chapters 353 and 356. The City has no obligation in connection with employee benefits offered through this plan beyond its annual required contributions. PERA issues a publicly available financial report that includes financial statements and required supplementary information for PERF and PEPFF. That report may be obtained by writing to PERA, 514 St. Peter Street #200, St. Paul, Minnesota, 55102 or by calling 651-296-7460 or 1-800-652-9026. The Shakopee Fire Department Relief Association is the administrator of a single employer defined benefit pension plan established to provide benefits for volunteer members of the Shakopee Fire Department. The Relief Association provides retirement benefits to members and benefits to survivors upon the death of eligible members. Benefit provisions are also subject to 9 enabling state statutes; therefore, any amendments to benefit provisions are reviewed by the Office of the State Auditor. Benefits are lump sum payments and the annual City contribution to the Association is determined by State of Minnesota directed calculations. Deficits are amortized over ten years as part of the city contribution. Annual actuarial studies are not done because the calculations to determine liability and city contributions are done by following Minnesota State law. The Relief Association issues a publicly available financial report that includes financial statements and required supplementary information for the Relief Association. The Association's report may be obtained by writing to Shakopee Fire Department Relief Association, 129 Holmes St. S., Shakopee, MN 55379. City employees are eligible to participate in COBRA provisions after severing employment or MN Chapter 488 after retirement, which allows employees to continue coverage on the City's health insurance plan under certain provisions. Currently, the City has seven former employees participating under the MN Chapter 488 provision and four disabled at the end of2003. The participants pay for the premium under the above provisions. AWARDS AND ACKNOWLEDGEMENTS The Government Finance Officers Association ofthe United States and Canada (GFOA) awarded a Certificate of Achievement for Excellence in financial reporting to the City of Shakopee for its Comprehensive Annual Financial Report (CAFR) for the fiscal year ended December 31,2002. This was the nineteenth consecutive year that the City has received this prestigious award. In order to be awarded a Certificate of Achievement, a government must publish an easily readable and efficiently organized CAFR. This report satisfied both GAAP and Applicable legal requirements. A Certificate of Achievement is valid for a period of one year only. We believe our current CAFR continues to meet the Certificate of Achievement Program's requirements and we are submitting it to the GFOA to determine its eligibility for another certificate. The preparation of this report would not have been possible without the efficient and dedicated services of the Finance Department and the entire city staff. We would like to express our appreciation to all staff members who assisted and contributed to the preparation of this report. Credit also must be given to the Mayor and Council members for their unfailing support for maintaining the highest standards of professionalism in the management ofthe City of Shakopee's finances. Respectfully submitted, Mark McNeill Gregg M.. V ox land City Administrator Finance Director 10 (THIS PAGE LEFT BLANK INTENTIONALLY.) 12 ~DV KERN. DEWENTER.VIERE INDEPENDENT AUDITORS' REPORT May 11, 2004 Honorable Mayor and Members ofthe City Council City of Shakopee Shakopee, Minnesota We have audited the accompanying financial statements ofthe governmental activities, the business-type activities, each major fund, and the aggregate remaining fund information and fiduciary activities of the City of Shakopee, Minnesota, as of and for the year ended December 31,2003, which collectively comprise the City'sbasic financial statements as listed in the Table of Contents. These financial statements are the responsibility of the City's management. Our responsibility is to express an opinion 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 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 of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audit provides a reasonable basis for our 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 and fiduciary fund information of the City of Shako pee, Minnesota, as of December 31,2003, and the respective changes in financial position and cash flows, where applicable, thereof for the year then ended in conformity with accounting principles generally accepted in the United States of America. In accordance with Government Auditing Standards, we have also issued our report dated May 11, 2004, on our consideration of the City of Shako pee, Minnesota's internal control over financial reporting and on our tests of its compliance with certain provisions of laws, regulations, contracts and grants. That report is an integral part of an audit performed in accordance with Government Auditing Standards and should be read in conjunction with this report in considering the results of our audit. 13 ~DV KERN.DEWENTER.VIERE The Management's Discussion and Analysis on pages 15 through 27 and the General Fund budgetary comparison information on pages 77 through 78 are not required parts ofthe basic financial statements but are supplemental information required by the Governmental Accounting Standards Board. We have applied certain limited procedures, which consisted primarily of management inquiries regarding the methods of measurement and presentation ofthe supplemental information. However, we did not audit this information and, accordingly, we express no opinion on it. Our audit was performed forthe purpose of forming an opinion on the financial statements that collectively comprise the City's basic financial statements. The information identified in the Table of Contents as supplementary information on pages 79 through 84 is presented for purposes of additional analysis and is not a required part ofthe basic financial statements. The supplementary information has been subjected to the auditing procedures applied in the audit ofthe basic financial statements and, in our opinion, is fairly stated in all material respects in relation to the basic financial statements taken as a whole. The information identified in the Table of Contents as the Introductory and Statistical Sections are presented for purposes of additional analysis and are not a required part of the basic financial statements ofthe City of Shakopee, Minnesota. This information has not been subjected to any audit procedures and, accordingly, we express no opinion on it. KERN, DEWENTER, VIERE, LTD. Minneapolis, Minnesota 14 CITY OF SHAKOPEE Scott County, Minnesota MANAGEMENT'S DISCUSSION AND ANALYSIS December 31, 2003 MANAGEMENT'S DISCUSSION AND ANALYSIS As management ofthe City of Shako pee (City), we offer readers ofthe City's financial statements this narrative overview and analysis of the financial activities of the City of Shako pee for the fiscal year ended December 31, 2003. 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 on pages 15 to 27 ofthis report. All amounts, unless otherwise indicated, are expressed in thousands of dollars. FINANCIAL HIGHLIGHTS . The assets ofthe City exceeded its liabilities at the close ofthe most recent fiscal year by $ 124 million (net assets). Ofthis amount, $ (unrestricted net assets) may be used to meet the government's ongoing obligations to citizens and creditors. . The government's total net assets increased by $ 12 million. Approximately $ 5 million is due to debt service reductions. . As of the close of the current fiscal year, the City's governmental funds reported combined ending fund balances of $ 22 million, an increase of $ 1 million in comparison with the prior year. Approximately 19% of this total amount, $ 4.2 million is available for spending at the City's discretion (unreservedfund balance). . At the end of the current fiscal year, unreserved fund balance for the general fund was $ 4.7 million or 60% oftotal general fund expenditures. . The City's total debt decreased by $1,950 (5%) during the current fiscal year. The key factor in this decrease was the principal payment of$ 1,565 for the G.O. Improvement Bonds series 1998A. This was due to prepayment of assessments. Overview of the Financial Statements - This discussion and analysis are intended to serve as an introduction to the City of Shako pee'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 ofthe City's finances, in a manner similar to private-sector business. IS CITY OF SHAKOPEE Scott County, Minnesota MANAGEMENT'S DISCUSSION AND ANALYSIS December 31, 2003 The statement of net assets presents information on all of the City of Shako pee's assets and liabilities, with the difference between the two reported as net assets. Over time, increases or decreases in net assets may serve as a useful indicator of whether the financial position ofthe City is improving or deteriorating. The statement of activities presents information showing how the government's net assets changed during the most recent fiscal year. All changes in net assets are reported as soon as the underlying event giving rise to the change occurs, regardless of the timing of related cashjlows. 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 ofthegovernment-wide financial statements distinguish functions ofthe City of Shakopee that are principally supported by taxes and intergovernmental revenues (governmental activities) from other function that are intended t recover all or a significant portion of their costs through user fees and charges (business-type activities). The governmental activities of the City include general government, public safety, highways and streets, sanitation, economic development, and recreation. The business-type activities ofthe City include an electrical distribution operation, water, sewer, storm drainage, and recreation operations. The government-wide financial statements include not only the City of Shakopee itself (known as the primary government), but also the Economic Development Authority which functions like a department of the City although it is a legally separate entity. City Council is the EDA Board. The Shakopee Public Utilities Commission (electric and water funds) is mostly legally separate but functions as department of the City. City Council appoints Commission members and therefore it has been included as an integral part of the primary government. The government-wide financial statements can be found on pages 29-30 ofthis report. Fund Financial Statements - Afund is a grouping of related accounts that is 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 three categories: governmental funds, proprietary funds, and fiduciary funds. Government Funds - Government 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 injlows 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 government's near-term financing's requirements. 16 CITY OF SHAKOPEE Scott County, Minnesota MANAGEMENT'S DISCUSSION AND ANALYSIS December 31, 2003 Because the focus of governmental funds is narrower than that ofthe 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 government's near-term financing decisions. Both the governmental fund balance sheet and the governmental fund statement of revenues, expenditures, and changes in fund balances provide a reconciliation to facilitate this comparison between governmental funds and governmental activities. The City of Shakopee maintains 31 individual governmental funds. Information is presented separately in the governmental fund balance sheet and in the governmental fund statement of revenues, expenditures, and changes in fund balances for the General Fund, 2002B Debt Service Fund, Electric, Water, Sewer, and Storm Funds, which are considered to be major funds. Data from the other 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 statements elsewhere in this report. The City of Shakopee adopts an annual appropriated budget for its general fund and two special revenue funds. A budgetary comparison statement has been prepared for those funds to demonstrate compliance with the budget. The basic governmental funds financial statements can be found on pages 31-33 of this report. 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 Electric, Water, Sewer, Storm Drainage, and Recreation operations. Internal service funds are an accounting device used to accumulate and allocate costs internally among the City's various functions. The City of Shakopee uses internal service funds to account for both its fleet of vehicles and mobile equipment, and its major buildings. Because both ofthese services predominantly benefit governmental rather than business-type functions, they have been included within governmental activities in the government-wide financial statements. 0 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 Electric, Water, Sewer and Storm operations, all of which are considered to be major funds ofthe City of Shakopee. Conversely, both internal service funds are combined into a single, aggregated presentation in the proprietary fund financial statements. Individual fund data for the internal service funds is provided in the form of combining statements elsewhere in this report. The basic proprietary fund financial statements can be found on pages 34-37 ofthis report. 17 CITY OF SHAKOPEE Scott County, Minnesota MANAGEMENT'S DISCUSSION AND ANALYSIS December 31, 2003 Fiduciary Funds - Fiduciary funds are used to account for resources held for the benefit of parties outside the government. Fiduciary funds are not reflected in the government-wide financial statement because the resources ofthose funds are not available to support the City of Shakopee's own programs. The accounting used for fiduciary funds is much like that used for proprietary funds. The basic fiduciary fund financial statements can be found on page 38 of this report. Notes to the Financial Statements - The notes provide additional information that is essential to a full understanding ofthe data provided in the government-wide and fund financial statements. The notes to the financial statements can be found on pages 41-68 of this report. Other Information - In addition to the basic financial statements and accompanying notes, this report also presents certain required supplementary information concerning the City's progress in funding its obligation to provide pension benefits to its employees. Required supplementary information can be found on page 27 ofthis report. The combining statements referred to earlier in connection with non-major governmental funds and internal service funds are presented immediately following the required supplementary information on pensions. Combining and individual fund statements and schedules can be found on pages 71-84 ofthis report. Government-wide Financial Analysis - As noted earlier, net assets may serve over time as a useful indicator ofa government's financial position. For the City of Shako pee, assets exceeded liabilities by $ 124 million at the close ofthe most recent fiscal year. By far the largest portion of the City's net assets L%) reflects its investment in capital assets (e.g., land, buildings, and equipment), less any related debt used to acquire those assets that is still outstanding. The City used these capital assets to provide .services to citizens; consequently, these assets are not available for future spending. Although the City's investment in its capital assets is reported net of related debt, it should be noted that the resources needed to repay this debt must be provided from other sources, since the capital assets themselves cannot be used to liquidate these liabilities. 18 CITY OF SHAKOPEE Scott County, Minnesota MANAGEMENT'S DISCUSSION AND ANALYSIS December 31, 2003 City of Shakopee's Net Assets Governmental Activities Business-type Activities Total 2003 2002 2003 2002 2003 2002 Current and Other Assets $ 99,999 $ 39,679 $ 66,000 $ 55,000 $ 165,999 $ 94,679 Capital Assets 99,999 - - - 99,999 - Total Assets 199,998 39,679 66,000 55,000 265,998 94,679 Long-term Liabilities Outstanding 15,505 17,010 - 25,080 15,505 42,090 Other Liabilities 9,999 3,835 - 4,019 9,999 7,854 Total Liabilities 25,504 20,845 29,099 25,504 49,944 Net Assets: Invested in Capital Assets, Net of Related Debt 9,999 - - - 9,999 - Restricted 999 15,928 - 19,484 999 35,412 Umestricted 9,999 14,495 - 29,394 9,999 43,889 Total Net Assets $ 20,997 $ 30,423 $ $ 48,878 $ 20,997 $ 79,301 An additional portion ofthe City's net assets L %) represents resources that are subject to external restrictions on how they may be used. The remaining balance of unrestricted net assets ($ ) may be used to meet the government's ongoing obligations to citizens and creditors. At the end ofthe current fiscal year, the City is able to report positive balances in all three categories of net assets, both for the government as a whole, as well as for its separate governmental and business-type activities. The same situation held true for the prior fiscal year. There was a crease of$ in restricted net assets reported in connection with the City's business-type activities. Almost half of this _crease ($ ) resulted from the removal of restrictions on certain assets associated with revenue bonds that were refunded curing the current fiscal year. The government's net assets increased by $ during the current fiscal year. About_ of this increase represents the degree to which increases in ongoing revenues have outstripped similar increases in ongoing expenses. Approximately another _ is attributable to The remainder ofthis growth largely reflects rate increases, Governmental activities. Governmental activities. increased the City of Shako pee's net assets by $_, thereby accounting for _ % ofthe total growth in net assets of the City. Key elements of this increase are as follows: 19 CITY OF SHAKOPEE Scott County, Minnesota MANAGEMENT'S DISCUSSION AND ANALYSIS December 31,2003 Governmental Business-type Activities Activities Total 2003 2002 2003 2002 2003 2002 Revenues: Program Revenues: Charges for Services $ 99,999 $ 1,243,535 $ 99,999 $ 24,256,158 $ 199,998 $ 25,499,693 Operating Grants and Contributions 961,535 - 9,387,294 10,348,829 Capital Grants and Contributions 3,507,256 - 3,507,256 General Revenues: Property Taxes - 8,966,830 - - 8,966,830 Other Taxes 174,468 - - - 174,468 Grants and Contributions Not Restricted to Specific Programs 5,734,466 3,918,541 9,653,007 Total Revenues 99,999 20,588,090 99,999 37,561,993 199,998 58,150,083 Expenses: General Government - 2,797,812 - - - 2,797,812 Public Safety - 4,460,936 - - - 4,460,936 Highways and Streets 10,405,356 - - 10,405,356 Economic Development 948,162 - - 948,162 Recreation - 1,164,357 - - 1,164,357 MSC - 109,455 - - 109,455 Interest on Long-term Debt - 729,300 - 1,202,462 1,931,762 Electric - - 15,860,119 15,860,119 Water - - 1,574,960 - 1,574,960 Sewer - - 1,715,706 - 1,715,706 Storm Drainage - - 609,591 609,591 Recreation - 1,482,323 1,482,323 Total Expenses 20,615,378 - 22,445,161 43,060,539 Increase in Net Assets Before 99,999 (27,288) 99,999 15,116,832 199,998 15,089,544 Transfers Transfers In - 1,057,147 - (220,876) - Transfers Out - (845,830) - - Net Assets January 1 399,577 101,438,389 86,542,433 101,837,966 86,542,433 Net Assets December 31 $ 499,576 $ 184,029 ########### ########### ########### ########### . Property taxes collected increased by $1,243 (19%) during the year. Most ofthis increase is the product of growth in the City. . Charges for service - development related fees increased $ 1,169 (40%). 20 CITY OF SHAKOPEE Scott County, Minnesota MANAGEMENT'S DISCUSSION AND ANALYSIS December 31,2003 __,W~= M""__' Expenses and Program Reveunes - Governmental Activities ~,--- c c_ .~-, ,-- 120 100 80 60 III Program Revenues III Expenses 40 20 0 ..... ~ en C c c E c - Q) ..... U Q) 0 o '- ~ Q) ~ E ~ .- E :;:; ..... Q) ..... m E a. m en 1-.0 Q) c C/) (j) o 0 ~ Q) Cl Q) C '- Q) Q) .~ c_ U (p C 0 " E; o Q) Q) ..... 0 :0 U > 0::: E-I " ::l W Q) a... 0 Revenues by Source - Governmental Activities Grants and Contributions Not Restricted to Other Specific 28% Programs 0% Operating Grants and Contributions Property Taxes 0% 51% Charges for Service Other Taxes 21% 0% 21 CITY OF SHAKOPEE Scott County, Minnesota MANAGEMENT'S DISCUSSION AND ANALYSIS December 31,2003 For the most part, increases in expenses closely paralleled inflation and growth in the demand for services. One notable exceptions however, was Business-type activities. Business-type activities increased the City's net assets by $ , accounting for _% of the total growth in the government's net assets. Key elements of this increase are as follows. . Infrastructure contribution by developers . Charges for service - FINANCIAL ANALYSIS OF THE GOVERNMENT'S FUNDS As noted earlier, the City of Shakopee 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. In particular, unreserved fund balance may serve as a useful measure of a government's net resources available for spending at the end of the fiscal year. Expenses and Program Revenues - Business-type Activities 25,000 20,000 15,000 IlI!I Program Revenues 10,000 11III Expenses 5,000 - i..'v q} q} ~~ ~o<::- (j; ~;;; 0~ C:J.....o 0'?f 00 Cj 0: <<;-0 22 CITY OF SHAKOPEE Scott County, Minnesota MANAGEMENT'S DISCUSSION AND ANALYSIS December 31, 2003 Revenues by Source - Business-type Activities Capital Grants and O:mtributions Other 24% 1% Investrrent Earnings 3% Olarges for Services 72% Operating Grants and Contributions 0% As of the end ofthe current fiscal year, the City of Shakopee's governmental funds reported combined ending fund balances of $ , an increase of $ in comparison with the prior year. Approximately _ of this total amount ($ 5,656) constitutes unreserved fund balance, which is available for spending at the government's discretion. The remainder of fund balance is reserved to indicate that it is not available for new spending because it has already been committed 1) to liquidate contracts purchase orders of the prior period, 2) to pay debt service ($ ), 3) for a variety of other restrictive purposes. The General Fund is the chief operating fund of the City of Shako pee. At the end of the current fiscal year, fund balance of the general fund was $ 5,656. As a measure ofthe general fund's liquidity, it may be useful to compare fund balance (all unreserved) to total fund expenditures. Fund balance represents 57.7% of total General Fund expenditures. Fund balance ofthe City's General Fund increased by $ 2,122 during the current fiscal year. Key factors in this growth are as follows: . Under-spending the budget by $ 888 or 8.3%. . Development fees exceeding the budget by $ 1,767. The budget was intentionally understated. The debt service funds had a total fund balance of $ , all of which is reserved for the payment of debt sy]:'Vicy. The net ~ crease in the debt service funds was minimal 23 CITY OF SHAKOPEE Scott County, Minnesota MANAGEMENT'S DISCUSSION AND ANALYSIS December 31, 2003 Proprietary funds. The City of Shako pee's proprietary funds provide the same type of information found in the government-wide financial statements, but in more detail. Unrestricted net assets of the enterprise funds: Electric Water Sewer Storm Beginning of Year $ 16,773 $ 3,113 $ - $ - Change During Year 2,158 (310) - - End of Year $ 18,931 $ 2,803 $ - $ - GENERAL FUND BUDGETARY HIGHLIGHTS Differences between the original General Fund budget and the final amended budget were significant for the current year. The original legally adopted budget for expenditures was $ 10,955 and transfers out were $ 933. The state legislature cut all local government aid and market value credit reimbursement to the Citydue to fiscal problems at the state level. The loss amounted to $ 726, which is 6.1 % of the original budget. In response, the City cut the budget by $ 509. The budget was also later amended to reflect the transfer of$ 1,000 to the Building Internal Service Fund. The monies came from development fees collected over the budgeted amount. CAPITAL ASSET AND DEBT ADMINISTRATION Capital assets - The City of Shakopee's investment in capital assets for its governmental and business type activities as of December 31,2003, amounts to $ (net of accumulated depreciation). This investment in capital assets includes land, buildings and systems, improvement, machinery and equipment, park facilities, roads, highways, and bridges. The total increase in the city's investment in capital assets for the current fiscal year was _% (a _% increase for governmental activities and a _% increase for business-type activities). Major capital assets events during the current fiscal year included the following: . Completion of the new library and police station. . Construction started on the new Public Utilities Service Center. . A variety of street construction projects in new residential developments were completed with a value of$ . Additions to the utility systems were completed for Electric $ 1,957, Water $ 3,594, Sewer $ and Storm $ . Construction of two ground level water storage tanks was commenced with a capacity of 2.5 million gallons each. 24 CITY OF SHAKOPEE Scott County, Minnesota MANAGEMENT'S DISCUSSION AND ANALYSIS December 31, 2003 CITY OF SHAKOPEE'S CAPITAL ASSETS (net of depreciation) Governmental Business-type Activities Activities Total 2003 2002 2003 2002 2003 2002 Land $ 2,445 $ 2,565 $ - $ - $ 2,445 $ 2,565 Buildings and System 13,060 14,055 13,060 14,055 26,120 28,110 Improvements Other Than Buildings - - 25,215 25,660 25,215 25,660 Machinery and Equipment - - - - Infrastructure - 390 - - 390 Total $ 15,505 $ 17,010 $ 38,275 $ 39,715 $ 53,780 $ 56,725 Additional information on the city's capital assets can be found in note _ on pages _ of this report. Long-term Debt - At the end of the current fiscal year, the City of Shakopee had total bonded debt outstanding of $32,590. Ofthis amount, $2,445 comprises debt backed by the full faith and credit ofthe government and $13,060 is special assessment debt for which the government is liable in the event of default by the property owners subject to the assessment. There is $410 in revenue bonds backed by the full faith and credit ofthe government. The remainder ofthe City's debt represented bonds secured solely of specified revenue sources (i.e., revenue bonds). City of Shakopee's Outstanding Debt General Obligation and Revenue Bonds Governmental Business-type Activities Activities Total 2003 2002 2003 2002 2003 2002 General Obligation Bonds $ 2,445 $ 2,565 $ - $ - $ 2,445 $ 2,565 Special Assessment Debt With Governmental Commitment 13,060 14,055 - - 13,060 14,055 Revenue Bonds - - 25,215 25,660 25,215 25,660 General Obligation Tax Increment Bonds - 390 - - 390 Total $ 15,505 $ 17,010 $ 25,215 $ 25,660 $ 40,720 $ 42,670 The City's total debt decreased by$ 1,950, (5%), during the current fiscal year. The key factor in this was the principal payment of$ 1,565 for the G.O. .Improvement Bonds Series 1998A. The City issued $ 2,215 in improvement bonds to finance several construction and reconstruction projects for infrastructure. State Statutes limit the amount of general obligation debt a government entity may issue to a net figure of 2% ofthe taxable market value. The current debt limitation for the City is $ 22 million, which is significantly in excess ofth~ City's outstanding general obligation debt. 25 CITY OF SHAKOPEE Scott County, Minnesota MANAGEMENT'S DISCUSSION AND ANALYSIS December 31,2003 On April 6th, 2004, the City issued $ 4,225 in G.O. Assessment bonds to finance three projects in the City. Also issued was $ 2,275 in G.O. Refunding bonds to refinance the 1997 G.O. Building Bonds with an expected savings of$ 142 in future debt service costs. As a result ofthe review by Moody's for rating these two bond issues above, the City's rating was raised to "Aa3". Additional information on the City's long-term debt can be found in note ill F on pages 20 to 22 ofthis report. ECONOMIC FACTORS AND NEXT YEAR'S BUDGETS AND RATES The unemployment rate for Scott County was 4.3% at years end. This is an increase from a rate of 4.0% a year ago. This compares favorably to the state's average unemployment rate of 4.9% andthe national average rate of 5.4%. Inflationary trends in the region compare favorably to national indices. During the current fiscal year, unreserved fund balance in the general fund increased from $ 3,534 to $ 5,656. The City has appropriated $ 414 ofthis amount for spending in the 2004 fiscal year. It is intended that fund balance that exceeds the necessary reserves will be transferred into the Internal Service Building Fund to pay for major repairs and future municipal buildings. In 2003, there was $ 1,000 transferred in to the Building Fund from the General Fund, the same as in 2002. General Fund revenues from development activities such as permits, engineering fees and platting were $ 4,059, which is 32% oftotal revenues. For 2002, the amounts were $ 2,890 and 26%. The tax levy for 2003/04 increased from $ 7,869 to $ 8,606, an increase of 9.4%. The tax rate decreased from 33.939 to 32.433 due to substantial growth in the tax base. The General Fund budget for 2004 expenditures as originally adopted was $ 11,760 compared to $ 7,762 for 2003 and $ 10,667 for 2002. This is reflective of the rapid population, commercial/industrial activity and infrastructure growth in the city. In 2003, there were 774 lots/units in 11 plats made available for building. The respective numbers for the prior year were 1,168 and 10. Rates for the electric and water utilities were raised effective August 1, 2003. Electric rates increased 6%. Increases were needed to offset increased operational costs in a growing system and to service debt for system expansions. Water rates were unchanged. Sewer and storm drainage rates were unchanged from 2003 due to the amount of assets in the funds. 26 CITY OF SHAKOPEE Scott County, Minnesota MANAGEMENT'S DISCUSSION AND ANALYSIS December 31,2003 REQUESTS FOR INFORMATION This financial report is designed to provide a general view of the City of Shakopee' s finances for all those with an interest in the government's finances. Questions concerning any ofthe information provided in this report or requests for additional information should be addressed to the Finance Director, 129 Holmes St. S., Shakopee, MN, 55379. 27 CITY OF SHAKOPEE Scott County, Minnesota STATEMENT OF NET ASSETS December 31, 2003 Governmental Business-type Activities Activities Total ASSETS: Cash and Investments (Including Cash Equivalents) $ 24,808,668 $ 29,924,486 $ 54,733,154 Receivables: Interest Receivable 143,256 246,165 389,421 Accounts Receivable 364,030 3,214,878 3,578,908 Taxes Receivable 79,711 - 79,711 Special Assessments 6,856,214 - 6,856,214 Current Portion of Long-term Receivable 40,000 - 40,000 Due from Other Governments 66,361 - 66,361 Interfund Balances 120,369 (120,369) - Inventory 555,329 555,329 Prepaid Items 84,562 50,369 134,931 Capital Assets: Land 11,054,459 3,275,567 14,330,026 Construction in Progress - 8,565,474 8,565,474 Buildings and System 16,988,901 108,582,513 125,571,414 Improvements Other Than Buildings 104,718,098 - 104,718,098 Machinery and Equipment 7,430,622 724,612 8,155,234 Less: Accumulated Depreciation (30,298,322) (19,623,823) (49,922,145) Noncurrent Assets: Unamortized Debt Issue Costs - 747,247 747,247 Restricted Investments - 15,465,831 15,465,831 Long-term Receivable 710,000 - 710,000 Total Assets 143,166,929 151,608,279 294,775,208 LIABILITIES: Salaries and Wages Payable 345,925 - 345,925 Accounts Payable 697,498 3,804,162 4,501,660 Contracts Payable 563,876 35,565 599,441 Deposits Payable - 248,753 248,753 Interest Payable 268,805 567,064 835,869 Due to Other Governments 19,000 - 19,000 Compensated Absences 905,106 47,632 952,738 Noncurrent Liabilities: Deferred Revenue - 526,608 526,608 Customer Advances - 286,379 286,379 Bonds Payable: Due Within One Year 1,775,000 640,000 2,415,000 Due in More Than One Year 13,730,000 24,514,418 38,244,418 Total Liabilities 18,305,210 30,670,581 48,975,791 NET ASSETS: Invested in Capital Assets, Net of Related Debt 94,388,758 81,725,264 176,114,022 Restricted for: Special Revenue 1,773,124 - 1,773,124 Debt Service 6,369,303 978,371 7,347,674 Capital Projects 7,088,887 - 7,088,887 Unrestricted 15,241,647 38,234,063 53,475,710 Total Net Assets $ 124,861.719 $ 120,937,698 $ 245,799,417 The notes to the financial statements are an integral part of this statement. 29 CITY OF SHAKO PEE Scott County, Minnesota STATEMENT OF ACTIVITIES For the Year Ended December 31, 2003 Net (Expense) Revenue Program Revenues and Changes in Net Assets Operating Capital Business- Charges for Grants and Grants and Governmental type Functions/Pro~rams Expenses Services Contributions Contributions Activities Activities Total Governmental Activities: General Government $ 3,444,245 $ 1,706,644 $ 591,720 $ - $ (1,145,881) $ - $ (1,145,881) Public Safety 4,995,127 2,206,049 304,179 - (2,484,899) - (2,484,899) Public Works 3,673,623 3,691,149 1,726,054 - 1,743,580 - 1,743,580 Park and Recreation 894,321 1,330,062 1,000 11,009 447,750 - 447,750 Interest on Long-term Debt 668,531 - - - (668,531) - (668,531 ) Total Governmental Activities 13,675,847 8,933,904 2,622,953 11,009 (2,107,981) - (2,107,981 ) Business-type Activities: Sewer 1,835,242 2,827,777 - 2,073,620 - 3,066,155 3,066,155 Storm Drainage 800,092 1,947,139 - 2,654,574 - 3,801,621 3,801,621 Recreation 1,552,524 758,124 2,345 - - (792,055) (792,055) Electric 17,634,004 19,733,990 - 366,014 - 2,466,000 2,466,000 Water 2,337,860 2,569,848 - 3,706,603 3,938,591 3,938,591 Total Business-type Activities 24,159,722 27,836,878 2,345 8,800,811 - 12,480,312 12,480,312 Total Government $ 37,835569 $ 36,770,782 $ 2,625,298 $ 8,811,820 (2,107,981) 12,480,312 10,372,331 General Revenues: Property Taxes 7,995,002 - 7,995,002 Tax Increments 507,706 - 507,706 Franchise Fees 201,963 - 201,963 Unrestricted Investment Earnings 550,705 942,040 1,492,745 Gain on Disposal of Assets 69,623 9,260 78,883 Transfers 443,651 (443,651) - Total General Revenues and Transfers 9,768,650 507,649 10,276,299 Change in Net Assets 7,660,669 12,987,961 20,648,630 Net Assets - Beginning 117,201,050 107,949,737 225,150,787 Net Assets - Ending $ 124,861,719 $ 120,937,698 $ 245.799,417 The notes to the financial statements are an integral part ofthis statement. 30 CITY OF SHAKOPEE Scott County, Minnesota GOVERNMENTAL FUNDS BALANCE SHEET December 31, 2003 Debt Service Capital Total 2002 B Projects Other Governmental Improvement CR 16/CR 18 Governmental Funds General Bonds Projects Funds 2003 ASSETS Cash and Investments (Including Cash Equivalents) $ 6,217,479 $ 610,390 $ 463,174 $ 14,544,969 $ 21,836,012 Interest Receivable 28,516 1,013 3,331 82,955 115,815 Accounts Receivable 226,420 - - 137,614 364,034 Due from Other Funds 670,088 - - - 670,088 Due from Other Governments 66,361 - - - 66,361 Delinquent Taxes Receivable 74,992 - - 4,719 79,711 Special Assessments Receivable: Delinquent 4,370 - - 353,058 357,428 Deferred 22,824 3,574,556 - 2,901,407 6,498,787 Prepaid Items 79,003 - - 5,560 84,563 Total Assets $ 7,390,053 $ 4,185,959 $ 466,505 $ 18,030,282 $ 30.072.799 LIABILITIES AND FUND BALANCES Liabilities: Salaries and Wages Payable $ 345,925 $ - $ - $ - $ 345,925 Accounts Payable 331,565 - - 350,958 682,523 Contracts Payable 65,461 - 96,241 295,479 457,181 Due to Other Funds - - - 549,719 549,719 Due to Other Governments - - - 19,000 19,000 Interest Payable - - - 1,557 1,557 Compensated Absences 900,097 - - 4,715 904,812 Deferred Revenue 102,186 3,574,556 - 3,259,184 6,935,926 Total Liabilities 1,745,234 3,574,556 96,241 4,480,612 9,896,643 Fund Balances: Reserved for Prepaid Items 79,003 - - 5,560 84,563 Reserved for Special Revenue - - - 1,773,124 1,773,124 Reserved for Debt Service - 611,403 - 5,757,900 6,369,303 Reserved for Capital Projects - - 370,264 6,718,623 7,088,887 Unreserved, Reported in: General Fund - Undesignated 5,565,816 - - - 5,565,816 Capital Projects Funds - Undesignated - - - (705,537) (705,537) Total Fund Balances 5,644,819 611,403 370,264 13,549,670 20,176,156 Total Liabilities and Fund Balances $ 7,390,053 $ 4,185,959 $ 466,505 $ 18,030,282 $ 30,072,799 The notes to the financial statements are an integral part of this statement. 31 CITY OF SHAKOPEE Scott County, Minnesota GOVERNMENTAL FUNDS RECONCILIATION OF THE BALANCE SHEET TO THE STATEMENT OF NET ASSETS As of December 31, 2003 Total Fund Balance - Governmental Funds (Page 31) $ 20,176,151 Amounts reported for governmental activities in the Statement of Net Assets are different because: Capital assets used in governmental activities are not financial resources and therefore are not reported as assets in governmental funds. Cost of Capital Assets 118,331,011 Less: Accumulated Depreciation (26,027,085) Long-term liabilities, including bonds payable, are not due and payable in the current period and therefore are not reported as liabilities in the funds. Long-Term Liabilities at Year-End Consist of: Bonds Payable (15,505,000) Delinquent property taxes receivable will be collected this year, but are not available soon enough to pay for. the current period's expenditures, and therefore are deferred in the funds. 79,710 Deferred special assessment receivable is not available to pay for current expenditures and, therefore, are deferred in the funds. 6,856,215 Governmental funds do not report a liability for accrued interest on long-term due debt until due and payable. (267,248) Internal Service Funds are used by management to charge the costs of equipment buildings to individual funds. A portion ofthe assets and liabilities ofthose funds are included in governmental activities in the statement of net assets. 21,217,965 Total Net Assets - Governmental Activities (Page 29) $ 124,861,719 The notes to the financial statements are an integral part of this statement. 32 CITY OF SHAKO PEE Scott County, Minnesota GOVERNMENTAL FUNDS STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES For the Year Ended December 31,2003 Capital Debt Service Proj ects Total 2002 B Other Governmental Improvement CR 16/CR 18 Governmental Funds General Bonds Proj ects Funds 2003 REVENUES Property Taxes $ 6,972,300 $ - $ - $ 1,019,399 $ 7,991,699 Special Assessments 15,570 698,586 - 2,444,404 3,158,560 Licenses and Permits 3,227,264 - - 1,521,193 4,748,457 Intergovernmental 535,329 - 538,177 1,539,371 2,612,877 Charges for Services 1,491,614 - - 45,798 1,537,412 Fines and Forfeitures 239,588 - - 35,995 275,583 Miscellaneous 271,657 8,474 - 325,816 605,947 Total Revenues 12,753,322 707,060 538,177 6,931,976 20,930,535 EXPENDITURES Current: General Government 2,412,918 - - 779,850 3,192,768 Public Safety 4,736,516 - - 32,955 4,769,471 Public Works 1,697,113 - - 523,891 2,221,004 Park and Recreation 669,570 - - - 669,570 Miscellaneous 317,167 - - - 317,167 Debt Service - 137,212 - 4,299,886 4,437,098 Capital Outlay - - 981,109 4,551,543 5,532,652 Total Expenditures 9,833,284 137,212 981,109 10,188,125 21,139,730 Excess (Deficiency) of Revenues Over (Under) Expenditures 2,920,038 569,848 (442,932) (3,256,149) (209,195) OTHER FINANCING SOURCES (USES) Bond Proceeds - - - 2,215,567 2,215,567 Proceeds from Sale of Property - - - 41,761 41,761 Transfers In 1,122,351 - - 610,521 1,732,872 Transfers Out (1,931,650) - - (357,571) (2,289,221) Total Other Financing Sources and Uses (809,299) - - 2,510,278 1,700,979 Net Change in Fund Balances 2,110,739 569,848 (442,932) (745,871 ) 1,491,784 Fund Balances - Beginning 3,534,080 41,555 813,196 14,295,541 18,684,372 Fund Balances - Ending $ 5,644,819 $ 611,403 $ 370,264 $ 13,549,670 $ 20,176,156 The notes to the financial statements are an integral part of this statement. 33 CITY OF SHAKOPEE Scott County, Minnesota GOVERNMENTAL FUNDS RECONCILIATION OF THE STATEMENT OF REVENUE, EXPENDITURES AND CHANGES IN FUND BALANCE TO STATEMENT OF ACTIVITIES For the Year Ended December 31, 2003 Total Net Change in Fund Balance - Governmental Funds (Page 33) $ 1,491,779 Amounts reported for governmental activities in the Statement Activities are different because: Capital outlays are reported in governmental funds as expenditures. However, in the Statement of Activities, the cost of those assets is allocated over the estimated useful lives as depreciation expense. Capital Outlays 7,646,507 Depreciation Expense (3,455,339) Disposed Assets (27,862) Certain revenues in the statement of activities that do not provide current financial resources are not reported as revenues in the funds (special assessments). (607,992) Principal payments on long-term debt are recognized as expenditures in the governmental funds but as an increase in net assets on the Statement of Activities. 3,720,000 Proceeds from long-term debt are recognized as an other financing source in the governmental funds but as a decrease in net assets on the Statement of Activities. (2,215,567) Interest on long-term debt in the Statement of Activities differs from the amount reported in the governmental funds because interest is recognized as an expenditure in the funds when it is due, and thus requires the use of current financial resources. In the statement of activities, however, interest expense is recognized as the interest accrues, regardless of when it is due. 48,567 Delinquent property taxes receivable will be collected this year, but are not available soon enough to pay for the current period's expenditures, and therefore are deferred in the funds. 3,302 Internal service funds are used by management to charge the costs of certain activities such as buildings and equipment, to individual funds. This amount represents the change in net assets of the internal service funds, which a portion are reported with governmental activities. 1,057,274 Change in Net Assets - Governmental Activities (Page 30) $ 7,660,669 The notes to the financial statements are an integral part of this statement. 34 CITY OF SHAKOPEE Scott County, Minuesota . PROPRIETARY FUNDS STATEMENT OF NET ASSETS December 31, 2003 Business-type Activities - Enterprise Funds Governmental Activities- Storm Total Internal Electric Water Sewer Drainage Recreation Enterprise Service Fund Fund Fund Fund Fund Funds Funds ASSETS Current Assets: Cash and Cash Equivalents $ 4,173,352 $ 599,152 $ 3,678,671 $ 9,870,926 $ 196,139 $ 18,5 I 8,240 $ Investments 10,173,302 10,173,302 4,216,432 Interest Receivable 55,666 40,426 81,840 57,151 1,935 237,018 36,588 Accounts Receivable 2,661,019 267,011 175,927 104,169 6,752 3,214,878 Due from Other Funds 24,939 8,313 33,252 Inventory 528,329 27,000 555,329 Prepaid Items 37,777 12,592 50,369 Long-term Receivable (Current Portion) 40,000 Total Current Assets 7,481,082 954,494 14,109,740 10,032,246 204,826 32,782,388 4,293,020 Noncurrent Assets: Long-term Receivable 710,000 Unamortized Debt Issue Costs 676,141 71,106 747,247 Restricted Investments 11 ,672, 133 3,793,698 15,465,831 Capital Assets: Land 2,540,697 355,414 379,456 3,275,567 755,940 Plant in Service 21,839,080 25,831,390 - 47,670,470 Electric Plant Acquisition (Net of Amortization) 1,313 ,090 1,313,090 Buildings and System 22,488,677 30,382,400 7,055 52,878,132 22,477,182 Machinery and Equipment 15,492 78,779 94,271 5,968,275 Constmction in Progress 5,212,571 3,161,871 191,032 8,565,474 Total Cost 30,905,438 29,348,675 22,695,201 30,761,856 85,834 130,010,082 29,201,397 Less: Accumulated Depreciation (4,603,465) (5,293,996) (3,386,827) (4,812,968) (46,624) (18,143,880) (5,751,178) Net Fixed Assets 26,301,973 24,054,679 19,308,374 25,948,888 39,210 111,866,202 23,450,219 Total Noncurrent Assets 38,650,247 27,919,483 19,308,374 25,948,888 39,210 111,866,202 24,160,219 Total Assets $ 46,131.329 $ 28.873,977 $ 33,418.114 $35,981.134 $ 244,036 $ 144.648590 $ 28,453,239 LIABILITIES Current Liabilities: Accounts Payable 2,947,795 646,441 156,843 6,703 41,290 3,799,072 20,359 Contracts Payable 142,260 Due to Other Funds 42,344 78,025 24,939 8,313 153,621 Interest Payable 8,350 8,350 Compensated Absences 47,632 47,632 Current Portion of Bonds Payable 130,000 130,000 Total Current Liabilities 2,990,139 724,466 181,782 153,366 88,922 4,138,675 162,619 Current Liabilities Payable from Restricted Assets: Customer Deposits Payable 248,753 248,753 Current Portion of Bonds Payable 436,000 74,000 510,000 Interest Payable 504,883 53,831 558,714 Total Current Liabilities Payable from Restricted Liabilities 1,189,636 127,831 1,317,467 Noncurrent Liabilities: Deferred Revenue 526,608 526,608 Customer Advances 286,379 286,379 Revenue Bonds (Net of Unamortized Bond Premium and Unamortized Loss on Advanced Refunding) 22,207,451 2,026,967 280,000 24,514,418 Total Noncurrent Liabilities 23,020,438 2,026,967 280,000 25,327,405 Total Liabilities 27,200,213 2,879,264 181,782 433,366 88,922 30,783,547 162,619 NET ASSETS Invested in Capital Assets, Net of Related Debt 8,754,704 22,212,869 19,308,374 25,538,888 39,210 75,854,045 23,450,219 Restricted for Debt Service 978,371 - 978,371 Unrestricted 10,176,412 2,803,473 13,927,958 10,008,880 115,904 37,032,627 4,840,401 Total Net Assets 18,931,116 25,994,713 33,236,332 35,547,768 155,114 113,865,043 28,290,620 Total Liabilities and Net Assets $ 46,131,329 $ 28,873,977 $33,418.114 $35,981.134 $ 244,036 $ 28,453,239 Explanation of difference between proprietary funds statement of net assets and the government - wide statement of net assets: The City uses two internal service funds to charge the cost of buildings and equipment to individual funds. The amount consists of the necessary adjustment to reflect the cQnsOlidationofinternal s~rvice rune! activities. 7,072,655 Total Business-type Activities Net Assets $ 120,937,698 The notes to the fmancial statements are an integral part of this statement 35 CITY OF SHAKOPEE Scott County, Minnesota PROPRIETARY FUNDS STATEMENT OF REVENUES, EXPENSES, AND CHANGES IN FUND NET ASSETS For the Year Ended December 31, 2003 Business-type Activities - Enterprise Funds Governmental Activities- Stonn Total Internal Electric Water Sewer Drainage Recreation Enterprise Service Fund Fund Fund Fund Fund Funds Funds Operating Revenues: Electric Charges $ 19,532,224 $ $ - $ - $ 19,532,224 $ Water Charges 2,412,123 - 2,412,123 Sewer Charges - 2,268,826 - 2,268,826 Storm Drainage Charges - - 926,774 926,774 Recreation Charges - - 743,397 743,397 Rental Charges 1,112,063 Total Operating Revenues 19,532,224 2,412,123 2,268,826 926,774 743,397 25,883,344 1,112,063 Operating Expenses: Wages, Salaries, and Compensation - 39,340 155,904 805,519 1,000,763 - Materials and Supplies - 12,835 23,619 125,986 162,440 Professional Services - - 61,782 38,258 145,259 245,299 - Utilities - - - 698 141,581 142,279 Rentals - - 22,476 34,659 255,222 312,357 - Insurance - - 11 ,427 7,821 23,963 43,211 Depreciation 816,408 617,084 406,222 493,453 8,566 2,341,733 840,543 Amortization 63,004 - - - 63,004 - Operations and Maintenance 15,682,426 1,618,035 1,259,960 - - 18,560,421 Miscellaneous - - 21,200 24,411 46,428 92,039 - Total Operating Expenses 16,561,838 2,235,119 1,835,242 778,823 1,552,524 22,963,546 840,543 Operating Income (Loss) 2,970,386 177,004 433,584 147,951 (809,127) 2,919,798 271,520 Nonoperating Revenues (Expenses): Investment Income 280,817 75,617 331,423 249,923 4,260 942,040 20,524 Interest Expense (1,072,166) (102,741) - (21,269) - (1,196,176) Gain (Loss) on Disposal of Assets - - - - 9,260 9,260 106,646 Other Income 201,766 157,725 382,738 844,153 17,072 1,603,454 Total Nonoperating Revenues (Expenses), Net (589,583) 130,601 714,161 1,072,807 30,592 1,358,578 127,170 Income Before Contributions and Transfers 2,380,803 307,605 1,147,745 1,220,758 (778,535) 4,278,376 398,690 Capital Contributions 366,014 3,706,603 2,073,620 2,654,574 - 8,800,811 11,009 Transfers In - - - 878,700 878,700 1,000,000 Transfers Out (588,326) (534,025) - (200,000) - (1,322,351) - Change in Net Assets 2,158,491 3,480,183 3,221,365 3,675,332 100,165 12,635,536 1,409,699 Total Net Assets - Beginning 16,772,625 22,514,530 30,014,967 31,872,436 54,949 26,880,921 Total Net Assets - Ending $ 18,931,116 $ 25,994,713 $ 33,236,332 $ 35,547,768 $ 155,114 $ 28,290,620 Explanation of difference between proprietary funds statement of net assets and the government-wide statement of net assets: The City uses two internal service funds to charge the cost of buildings and equipment to individual funds. The amount represents the gain that has been allocated back to the business-type activities in the government-wide statement of activities that is attributable to the City's business-type activities. 352,425 Change in Net Assets - Business-type Activities $ 12,987.961 The notes to the financial statements are an integral part of this statement. 36 CITY OF SHAKOPEE Scott County, Minnesota PROPRIETARY FUNDS STATEMENT OF CASH FLOWS }<'or the Year Ended December 31, 2003 Business - type Activities - Enterprise Funds Governmental Activities- Total Internal Electric Water Sewer Storm Recreation Enterprise Service Fund Fund Fund Drainage Fund Funds Funds CASH FLOWS FROM OPERATING ACTIVITIES Receipts from Customers and Users $ 20,073,526 $ 2,799,423 $ 2,373,689 $ 1.000,775 $ 774,550 $ 27,021,963 $ 1,218,568 Payments to Suppliers (14,296,016) (812,130) #REF! #REF! #REF! #REF! (494,923) Payments to Employees (994,711) (464,648) (39.340) (155,904) (798,649) (2,453,252) Payments for Interfund Services 2,548 (2,454) 94 Net Cash Provided by Operating Activities 4,782,799 1,522,645 #REF! #REF! #REF! #REF! 723,645 CASH FLOWS FROM NON CAPITAL FINANCING ACTIVITIES Transfers to Other Funds (588,326) (534,025) (200,000) (1,322,351) Transfers from Other Funds 878,700 878,700 1,000,000 Net Cash Provided (Used) by Noncapital Financing Activities (588,326) (534,025) (200,000) 878,700 (443,651) I ,000,000 CASH FLOWS FROM CAPITAL AND RELATED FINANCING ACTIVITIES Debt Retired - Revenue Bonds (321,200) (8,800) (125,000) (455,000) Interest Paid (1,183,944) (98,809) (23,665) - (1,306,418) (57,373) Contributions Received for Construction 274,209 274,209 Installation Fees 163,246 J 63,246 Connection Charges 1,416,415 1,416,415 Trunk Charges 305,294 382,738 844,153 - 1,532,185 Acquisition and Construction of Capital Assets (5,451,090) (3,683,264) (198,498) (9,332,852) (7,043,289) Net Cash Provided (Used) by Capital and Related Financing Activities (6,682,025) (1,905,918) 184,240 695,488 (7,708,215) (7,100,662) CASH FLOWS FROM INVESTING ACTIVITIES Proceeds (Purchases) ofInvestments 2,983,263 1,034,978 (331,988) 3,686,253 5,222,866 Payment Received for Notes Receivable 40,000 Interest and Dividends Received 343,522 90,771 331,987 246,613 4,989 1,017,882 114,151 Net Cash Provided (Used) by Investing Activities 3,326,785 1,125,749 (I) 246,613 4,989 4,704,135 5,377 ,017 Net Increase in Cash and Cash Equivalents 839,233 208,451 #REF! .#REF! #REF! #REF! Cash and Cash Equivalents, January I 3,334,119 390,701 2,486,780 8,417,943 64,088 14,693,631 Cash and Cash Equivalents, December 31 $ 4,173,352 $ 599,152 #REF! #REF! #REF! #REF! $ Reconciliation of Operatin2 Income to Net Cash Provided (Used) by Operatin2 Activities: Operating Income (Loss) $ 2,970,386 $ 177,004 $ 433,584 $ 147,951 $ (809,127) $ 2,919,798 $ 271,520 Adjustments to Reconcile Operating Income to Net Cash Provided (Used) by Operating Activities: Depreciation and Amortization Expense 879,412 617,084 406,222 493,453 8,566 2,404,737 840,543 Other Nonoperating Revenue (Expense) 235,603 165,665 17.072 418,340 106,646 (Increase) Decrease in Assets: Accounts Receivable (214,832) 221,659 104,863 74,001 14,081 199,772 - Due from Other Funds (71) (24) (95) Inventory (43,536) (3,085) (46,621) Prepaid Items (3,518) (1,172) (4,690) Interest Receivable (141) Increase (Decrease) in Liabilities: Accounts and Contracts Payable 440,557 338,797 60,435 (2,069) 10,900 848,620 (494,923) Wages, Salaries and Compensation Payable - 6,870 6,870 Due to Other Funds (17,918) 11,744 2,548 (2,454) - (6,080) Customer Deposits 30,259 30,259 Deferred Revenue 490,343 490,343 Other Liabilities 16,114 (5,027) 11,087 Total Adjustments 1,812,413 1,345,641 574,068 562,93 I 57,489 4,352,542 452,125 Net Cash Provided by Operating Activities $ 4,782,799 $ 1,522,645 $ 1,007,652 $ 710,882 $ (751,638) $ 7,272,340 $ 723,645 Noncash Investing, Capital and Financing Activities: Contributions of Capital Assets from the Municipality and Developers $ 366,014 $ 3,706,603 $ 2,073,620 $ 2,654,574 $ $ 8,800,811 $ 11,009 Change in Fair Market Value ofInvestments $ $ $ 193,357 $ 135,026 $ 4,572 $ 332,955 $ 86,445 The notes to the financial statements are an integral part of this statement 37 CITY OF SHAKOPEE Scott County, Minnesota ST ATEMENT OF FIDUCIARY NET ASSETS December 31, 2003 Escrow Agency Fund ASSETS Cash and Investments (Including Cash Equivalents) $ 1,602,985 Total Assets $ 1,602,985 LIABILITIES Deposits Payable $ 1,602,985 The notes to the financial statements are an integral part of this statement. 38 CITY OF SHAKOPEE Scott County, Minnesota ESCROW AGENCY FUND STATEMENT OF CHANGES IN ASSETS AND LIABILITIES For The Year Ended December 31, 2003 Balance at Balance at January 1, December 31, 2003 Additions Deductions 2003 ASSETS: Cash and Investments (Including Cash Equivalents) $ 1,779,089 $ 1,347,085 $ 1,523,189 $ 1,602,985 Total Assets $ 1,779,089 $ 1,347,085 $ 1.523.189 $ 1,602,985 LIABILITIES: Accounts Payable $ 20,567 $ - $ 20,567 $ - Deposits Payable 1,758,522 1,347,085 1,502,622 1,602,985 Total Liabilities $ 1,779,089 $ 1,347,085 $ 1.523.189 $ 1,602,985 39 CITY OF SHAKOPEE Scott County, Minnesota NOTES TO THE FINANCIAL STATEMENTS For the Year Ended December 31, 2003 NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES A. Reporting Entity The City of Shakopee is a statutory city governed by an elected mayor and four council members. The accompanying financial statements present the government entities for which the government is considered to be financially accountable. The financial statements present the City and its component units. The City includes all funds, organizations, institutions, agencies, departments and offices that are not legally separate from such. Component units are legally separate organizations for which the elected officials ofthe City are financially accountable and are included within the financial statements of the City because ofthe significance oftheir operational or financial relationships with the City. The City is considered financially accountable for a component unit if it appoints a voting majority ofthe organization's governing body and it is able to impose its will on the organization by significantly influencing the programs, projects, activities or level of services performed or provided by the organization, or there is a potential for the organization to provide specific financial benefits to, or impose specific financial burdens on, the City. As a result of applying the component unit definition criteria above, certain organizations have been defined in accordance with GASB Statement No. 14 and are presented in this report as follows: . . Blended Component Units - Reported as ifthey were part ofthe City . Jointly Governed Organizations - The relationship ofthe City with the entity is disclosed For the categories above, the specific entities are identified as follows: Blended Component Unit: Economic Development Authoritv for the City of Shakopee. Minnesota(EDA): Shakopee Economic Development Authority (EDA) was organized to promote development, improve housing and reduce blighted areas in the City. It is included by reason ofthe City Council having final approval for EDA actions and the EDA board being comprised entirely of City Council members. City staff handles EDA activity including EDA funds and the City approves EDA tax levies and bonding activity. Therefore, the City has financial oversight for EDA activities. 41 CITY OF SHAKOPEE Scott County, Minnesota NOTES TO THE FINANCIAL STATEMENTS For the Year Ended December 31, 2003 NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES A. Reporting Entity (Continued) The activity ofthe EDA is shown in the EDA - Special Revenue Fund in the City's financial statements. No separate financial statements for the EDA are issued. For any information desired beyond what is presented in this report, contact the Finance Director for the City of Shakopee at 129 Holmes Street South, Shakopee, MN 55379-1351. Jointly Governed Organizations: Local Government Information Systems (LOGrS): LOGIS is a joint venture of approximately 28 governmental entities that provides computerized data processing and support services to its members. Legally separate, the City does not appoint a voting majority of the Board and LOGIS is fiscally independent ofthe City. During 2003, the City paid $ 141,287 to LOGIS for services provided which is included in expenditures of the General Fund. Financial statements are available by contacting LOGIS, 5750 Duluth Street, Golden Valley, MN 55422-4036. Scott Joint Prosecution Association (SJP A): SJP A is a joint venture of approximately five cities that provides legal prosecution and support services to its members. Legally separate, the City does not appoint a voting majority of the Board and SJP A is fiscally independent ofthe City. During 2003, the City paid $190,921 to SJP A for services provided which is included in expenditures of the General Fund. Financial statements are available by contacting SJPA, 129 South Holmes St., Shakopee, MN 55379. Other Organizations: Shakopee Fire Relief Association: Shakopee Fire Relief Association is organized as a nonprofit organization by its members to provide pensions and other benefits to its members in accordance with Minnesota statutes. It is not a component unit ofthe City because the board of directors is appointed by the membership. The financial oversight ofthe City is limited to approval authority for amending the association bylaws when the change results in an increase in the pension benefit level requiring an increased City contribution. The Relief Association has the authority to levy its own taxes for pensions and deficits and would continue to exist for its members ifthe City was dissolved. 42 CITY OF SHAKOPEE Scott County, Minnesota NOTES TO THE FINANCIAL STATEMENTS For the Year Ended December 31, 2003 NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES B. Government-wide and Fund Financial Statements The government-wide financial statements (i.e., the statement of net assets and the statement of changes in net assets) report information on all of the nonfiduciary activities of the City. The Fiduciary Funds are only reported in the Statements of Fiduciary Net Assets at the Fund Financial Statement level. 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 segment are offset by program revenues. Direct expenses are those that are clearly identifiable with a specific function or segment. Interest on general long-term debt is considered an indirect expense and is reported separately on the Statement of Activities. 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 segment and 2) grants and contributions that are restricted to meeting the operational or capital requirements of a particular function or segment. Taxes and other items not properly included among program revenues are reported instead as general revenues. Separate financial statements are provided for governmental funds and proprietary funds. Major individual governmental funds and major individual enterprise funds are reported as separate columns in the fund financial statements. The City's agency fund is presented in the Fiduciary Fund Financial Statements. Since, by definition, these assets are being held for the benefit of a third party (other local governments, private parties, etc.) and cannot be used to address activities or obligations of the City, this fund is not incorporated into the government-wide 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 and fiduciary 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. 43 CITY OF SHAKOPEE Scott County, Minnesota NOTES TO THE FINANCIAL STATEMENTS For the Year Ended December 31, 2003 NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES C. Measurement Focus, Basis of Accounting and Financial Statement Presentation (Continued) 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 government considers revenues to be available if they are collected within 60 days 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, franchise taxes, licenses and interest associated with the current fiscal period are all considered to be susceptible to accrual and so have been recognized as revenues ofthe 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 ofthe current period. All other revenue items are considered to be measurable and available only when cash is received by the government. The government reports the following major governmental funds: The General Fund is the government's primary operating fund. It accounts for all financial resources ofthe general government, except those required to be accounted for in another fund. The 2002 B Improvement Bonds debt service fund accounts for the resources accumulated and payments made for principal and interest on this bond issue. The CR 16/CR 18 Projects capital project fund accounts for costs associated with the CR 16/CR 18 projects. 44 CITY OF SHAKOPEE Scott County, Minnesota NOTES TO THE FINANCIAL STATEMENTS For the Year Ended December 31,2003 NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES C. Measurement Focus, Basis of Accounting and Financial Statement Presentation (Continued) The government reports the following major proprietary funds: The Electric Fund accounts for the operations of the City's electric utility. The Water Fund accounts for the operations ofthe City's water utility. The Sewer Fund accounts for operations ofthe City's sewer utility. The Storm Drainage Fund accounts for the activities of the City's storm drainage operations. The Recreation Fund accounted for operations of the City's Recreation Center, Aquatic Park, and Ice Arena. The government reports the following internal service funds: The Equipment Fund accounts for the City's acquisition oflarger pieces of equipment. The Building Fund accounts for the City's funds accumulated for construction of public buildings. The government reports the following fiduciary fund: The Escrow Agency Fund accounts for the monies held for specific purposes for individuals, private organizations, other government units and other funds. Private-sector standards of accounting and financial reporting issued prior to December 1, 1989, generally are followed in both the government-wide and proprietary fund financial statements to the extent that those standards do not conflict with or contradict guidance of the Governmental Accounting Standards Board. Governments also have the option of following subsequent private-sector guidance for their business-type activities and enterprise funds, subject to this same limitation. The government has elected not to follow subsequent private-sector guidance. As a general rule, the effect of interfund activity has been eliminated from the government- wide financial statements. Exceptions to this general rule are charges between the government's sanitary sewer function and various other functions ofthe government. 45 CITY OF SHAKOPEE Scott County, Minnesota NOTES TO THE FINANCIAL STATEMENTS For the Year Ended December 31, 2003 NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES C. Measurement Focus, Basis of Accounting and Financial Statement Presentation (Continued) Elimination of these charges would distort the direct costs and program revenues reported for the various functions concerned. Amounts reported as program revenues include I) charges to customers or applicants for goods, services, or privileges provided, 2) operating grants and contributions, and 3) capital grants and contributions, including special assessments. General revenues include all taxes. The City levies its property tax for the subsequent year during the month of December. December 28 is the last day the City can certify a tax levy to the County Auditor for collection the following year. Such taxes become a lien on January I and are recorded as receivables by the City at that date. The property tax is recorded as revenue when it becomes measurable and available. Scott County is the collecting agency for the levy and remits the collections to the City three times a year. Taxes not collected as of December 31 each year are shown as delinquent taxes receivable. The County Auditor prepares the tax list for all taxable property in the City, applying the applicable tax rate to the tax capacity of individual properties, to arrive at the actual tax for each property. The County Auditor also collects all special assessments, except for certain prepayments paid directly to the City. The County Auditor submits the list of taxes and special assessments to be collected on each parcel of property to the County Treasurer in January of each year. 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 enterprise funds are charges to customers for sales and services. Operating expenses for enterprise funds include the cost of sales and services, administrative expenses and depreciation on capital assets. All revenues and expenses not meeting this definition are reported as nonoperating revenues and expenses. When both restricted and unrestricted resources are available for use, it is the government's policy to use restricted resources first, then unrestricted resources as they are needed. 46 CITY OF SHAKOPEE Scott County, Minnesota NOTES TO THE FINANCIAL STATEMENTS For the Year Ended December 31,2003 NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES D. Assets, Liabilities and Net Assets or Equity 1. Deposits and Investments The government's cash and cash equivalents are considered to be cash on hand, demand deposits and short-term investments with original maturities ofthree months or less from the date of acquisition. Minnesota Statutes authorizes the City to invest in obligations of the U.S. Treasury, agencies and instrumentalities, shares of investment companies whose only investments are in the aforementioned securities, obligations of the State of Minnesota or its municipalities, bankers' acceptances, future contracts, repurchase and reverse repurchase agreements and commercial paper of the highest quality with a maturity of no longer than 270 days and in the Minnesota Municipal Investment Pool. Investments for the government are reported at fair value. The Minnesota Municipal Investment Pool operates in accordance with appropriate state laws and regulations. The reported value ofthe pool is the same as the fair value of the pool shares. 2. Receivables and Payables Activity between funds that are representative oflending/borrowing arrangements outstanding at the end ofthe fiscal year are referred to as either "due to/from other funds" (i.e., the current portion of inter fund loans) or "advances to/from other funds" (i.e., the noncurrent portion of inter fund loans). All other outstanding balances between funds are reported as "due to/from other funds." Any residual balances outstanding between the governmental activities and business-type activities are reported in the government-wide financial statements as "internal balances." Advances between funds, as reported in the fund financial statements, are offset by a fund balance reserve account in applicable governmental funds to indicate that they are not available for appropriation and are not expendable available financial resources. All trade and property tax receivables are shown at a gross amount since both are assessable to the property taxes and are collectible upon the sale of the property. The City levies its property tax for the subsequent year during the month of December. December 28 is the last day the City can certify a tax levy to the County Auditor for collection the following year. Such taxes become a lien on January 1 and are recorded as receivables by the City at that date. The property tax is recorded as revenue when it becomes measurable and available. Dakota County is the collecting agency for the levy 47 CITY OF SHAKOPEE Scott County, Minnesota NOTES TO THE FINANCIAL STATEMENTS For the Year Ended December 31, 2003 NOTE 1- SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES D. Assets, Liabilities and Net Assets or Equity 2. Receivables and Payables (Continued) and remits the collections to the City three times a year. The tax levy notice is mailed in March with the first half payment due on May 15 and the second half payment is due on October 15. Taxes not collected as of December 31 each year are shown as delinquent taxes receivable. The County Auditor prepares the tax list for all taxable property in the City, applying the applicable tax rate to the tax capacity of individual properties, to arrive at the actual tax for each property. The County Auditor also collects all special assessments, except for certain prepayments paid directly to the City. The County Auditor submits the list oftaxes and special assessments to be collected on each parcel of property to the County Treasurer in January of each year. 3. Inventory and 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. Other assets include unamortized debt issue costs for the Electric and Water Enterprise Funds. Also included is the unamortized cost of buying capacity in a sewer inceptor owned by Metropolitan Council - Environmental Services. Inventories of enterprise funds are valued at average cost using the first in/first out (FIFO) method. Inventories of governmental funds are not recorded at year-end on the balance sheets because they accumulate insignificant inventories. 4. Restricted Assets Certain cash and investments in the Enterprise Funds are classified as restricted. The Electric fund has monies restricted for customer deposits, emergency system repairs, construction projects and debt service. The Water Fund has monies restricted for water production and trunk distribution facility acquisition, based on trunk and connection fees collected from users, construction projects and debt service. 48 CITY OF SHAKOPEE Scott County, Minnesota NOTES TO THE FINANCIAL STATEMENTS For the Year Ended December 31, 2003 NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES . D. Assets, Liabilities and Net Assets or Equity (Continued) 5. Capital Assets Capital assets, which include property, plant, equipment and infrastructure assets (e.g., roads, sidewalks and similar items), are reported in the applicable governmental or business-type activities columns in the government-wide financial statements. Capital assets are defined by the government as assets with an initial, individual cost of more than $ 5,000 (amount not rounded) and an estimated useful life in excess of two years. Such assets are recorded at historical cost or estimated historical cost if purchased or constructed. Donated capital assets are recorded at estimated fair market value at the date of donation. 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. Property, plant and equipment ofthe City is depreciated using the straight line method over the following estimated useful lives: Assets Years Buildings 50 Park Buildings 30 Building Improvements 25 Light Vehic1es 4-10 Machinery and Equipment 4-20 Fire Trucks 20-25 Utility Distribution System 50 6. Compensated Absences Vacation and.sick leave benefits are recorded as expenditures in governmental funds when the obligations are expected to be liquidated with expendable financial resources. City employees earn vacation time based on years of City service. Employees who have 0-15 years of employment may accumulate no more than 240 hours. Employees who have 16 or more years of service may accumulate no more than 360 hours of vacation leave. Upon termination, employees will receive compensation for unused vacation. Non-union employees earn sick leave at a rate of3.69 hours per pay period and may accumulate it to a maximum of 960 hours. The City compensates employees who leave municipal service at the rate of 45% of unused sick leave up to a maximum of960 hours. 49 CITY OF SHAKOPEE Scott County, Minnesota NOTES TO THE FINANCIAL STATEMENTS For the Year Ended December 31, 2003 NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES D. Assets, Liabilities and Net Assets or Equity (Continued) 7. Long-term Obligations In the government-wide financial statements, and proprietary fund types 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 fund type statement of net assets. Bond premiums and discounts, as well as 'issuance costs, are deferred and amortized over the life of the bonds using the effective interest method. Bonds payable are reported net of the applicable bond premium or discount. Bond issuance costs are reported as deferred charges and amortized over the term of the related debt. In the fund financial statements, governmental fund types recognize bond premiums and discounts, as well as bond issuance costs, 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. Issuance costs, whether or not withheld from the actual debt proceeds received, are reported as debt service expenditures. 8. Fund Equity In the fund financial statements, governmental funds report reservations of fund balance for amounts that are not available for appropriation or are legally restricted by outside parties for use for a specific purpose. Designations of fund balance represent tentative management plans that are subject to change. 9. Changes in Accounting Principles For the year ended December 31,2003, the City has implemented Governmental Accounting Standards Board (GASB) Statement No. 34, Basic Financial Statements - and Management's Discussion and Analysis - for State and Local Governments. GASB Statement No. 34 creates new basic financial statements for reporting on the City's financial activities. The financial statements now include government-wide financial statements prepared on the accrual basis of accounting, and fund financial statements which present information for individual major funds rather than by fund type which had been the mode of presentation in previously issued financial statements. Nonmajor funds are presented in total in one column in the fund financial statements. 50 CITY OF SHAKOPEE Scott County, Minnesota NOTES TO THE FINANCIAL STATEMENTS For the Year Ended December 31, 2003 NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES D. Assets, Liabilities and Net Assets or Equity (Continued) 9. Changes in Accounting Principles (Continued) Implementation of GASB Statement No. 34 caused the opening fund balance at December 31, 2002 to be restated in terms of "Net Assets" as follows: Total Fund Balances Governmental Funds - at December 31, 2002 $ 18,684,372 Add: Cost of Capital Assets at December 31, 2002 110,767,094 Less: Accumulated Depreciation at December 31 (26,334,931 ) Less: Long-Term Debt: Bond Principal (17,010,000) Accrued Interest Payable at December 31, 2002 (315,816) Add: Deferred Revenues 7,540,615 Allocation of Internal Service Funds 23,869,716 Net Assets at December 31, 2002 $ 117,201,050 Total Enterprise Net Assets - December 31,2002 $ 101,229,507 Add: Allocation of Internal Service Funds 6,720,230 Net Assets at December 31, 2002 $ 107,949,737 NOTE 2 - STEWARDSHIP, COMPLIANCE AND ACCOUNTABILITY A. Budgetary Information BudgetaryInformation Budgets are adopted on a basis consistent with generally accepted accounting principles. Annual appropriated budgets are adopted for the General Fund and special revenue funds with the exception ofthe Forfeiture Fund and SCDP Grant Fund. The Forfeiture Fund is not required to have a budget adopted. All activity in this fund is at the discretion of the Chief of Police. 51 CITY OF SHAKOPEE Scott County, Minnesota NOTES TO THE FINANCIAL STATEMENTS For the Year Ended December 31, 2003 NOTE 2 - STEWARDSHIP, COMPLIANCE AND ACCOUNTABILITY A. Budgetary Information (Continued) Budgeted amounts presented the originally adopted budget and final amended budget approved by the City Council. The City does not use encumbrances. Budgeted expenditure appropriations lapse at year end. 1. In August of each year, City staff submits to the City Council a proposed operating budget for the fiscal year commencing the following January 1. The operating budget includes proposed expenditures and the means of financing them for the upcoming year. 2. Public hearings are conducted to obtain taxpayer comments. 3. The budget is legally enacted through passage of a resolution after obtaining taxpayer comments. 4. Budgets for the General and Special Revenue Funds are adopted on a basis consistent with accounting principles (GAAP) generally accepted in the United States of America. 5. Expenditures may not legally exceed budgeted appropriations at the department level. No fund's budget can be increased without City Council approval. The City Council may authorize transfer of budgeted amounts between departments within any fund. Management may amend budgets within a department level, so long as the total department budget is not changed. 6. Annual appropriated budgets are adopted during the year for the General and Special Revenue Funds. Annual appropriated budgets are not adopted for Debt Service Funds because effective budgetary control is alternatively achieved through bond indenture provisions. Budgetary control for Capital Project Funds is accomplished through the use ofproject controls and formal appropriated budgets are not adopted. 7. Budgeted amounts are as originally adopted or as amended by the City Council. Individual amendments were not material in relation to the original amounts budgeted. Budgeted expenditure appropriations lapse at year end. Encumbrances outstanding.at year end expire and outstanding purchase orders are canceled and not reported in the financial statements. 52 CITY OF SHAKOPEE Scott County, Minnesota NOTES TO THE FINANCIAL STATEMENTS For the Year Ended December 31, 2003 NOTE 2 - STEWARDSHIP, COMPLIANCE AND ACCOUNTABILITY B. Deficit Fund Equity Debt Service Fund: TIF #10 $ (3,245) Capital Project Funds: 2003 Projects (645,722) West Dean's Lake (46,638) 2004 Projects (9,932) The deficit fund balance in the tax increment fund will be eliminated through future tax increment collections. The deficit fund balance in the capital projects funds are a result of ongoing construction which is periodically reimbursed by transfers from other funds and bond proceeds. NOTE 3 - DETAILED NOTES ON ALL FUNDS A. Deposits and Investments The City has the authority from the City Council and Utility Commission to maintain deposits with various financial institutions that are members of the Federal Reserve System. As required by Minnesota Statutes, any ofthe City's deposits are to be protected by $ 100,000 of federal depository insurance, surety bond, and pledged collateral. The market value of pledged collateral must equal 110% of the deposits not covered by insurance or bonds. Authorized collateral includes the legal investments described below and certain other state and local government obligations. 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. Any ofthe City's deposits are to be categorized to give an indication ofthe level of risk assumed at year-end. Category I includes deposits that are insured or collateralized with securities held by the City or its agent in the City's name. Category 2 includes deposits that are collateralized with securities held by the pledging financial institution's trust department or agent in the City's name. Category 3 includes deposits which are uncollateralized or collateralized with securities held by the pledging financial institution or by its trust department or agent but not in the City's name. 53 CITY OF SHAKOPEE Scott County, Minnesota NOTES TO THE FINANCIAL STATEMENTS For the Year Ended December 31, 2003 NOTE 3 - DETAILED NOTES ON ALL FUNDS A. Deposits and Investments (Continued) Category 1 - Deposits covered by Federal Depository Insurance (FDIC) and those deposits collateralized with securities held by the City or by its agent in the City's name. Category Bank Carrying 1 2 3 Balance Amount Bank Accounts $ 1,430,931 $ - $ - $ 1,430,931 $ 1,166,039 Categories 2 and 3 are not authorized by Minnesota Statutes; however, due to the effects of cash flows the City's deposits may temporarily fall into these categories. The City also invests idle funds as authorized by Minnesota Statutes, as follows: 1. Direct obligations or obligations guaranteed by the United States or its agencies. 2. Shares of investment companies registered under the Federal Investment Company Act of 1940 and whose only investments are in securities authorized by Minnesota Statutes 3. Bankers' acceptances of United States banks eligible for purchase by the Federal Reserve System. 4. Commercial paper issued by United States corporations or their Canadian subsidiaries of the highest quality and maturing in 270 days or less. 5. Repurchase or reverse repurchase agreements with banks that are members ofthe 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, or certain Minnesota securities broker-dealers. The City's investments are categorized in the following table to give an indication of the level of risk assumed at year-end. Category 1 includes investments that are insured or registered or for which the securities are held by the City or its agent in the City's name. Category 2 includes uninsured and unregistered investments for which the securities are held by the counterparty's trust department or agent in the City's name. Category 3 includes uninsured and unregistered investments for which the securities are held by the counterparty or by its trust department or agent but not in the City's name. 54 CITY OF SHAKOPEE Scott County, Minnesota NOTES TO THE FINANCIAL STATEMENTS For the Year Ended December 31, 2003 NOTE 3 - DETAILED NOTES ON ALL FUNDS A. Deposits and Investments (Continued) At year end, the government's investment balances were as follows: Reported Category Amount/ 1 2 3 Fair Value u. S. Government Agency Securities $ 45,057,000 $ - $ - $ 45,057,000 Commercial Paper 19,968,562 - - 19,968,562 Total $ 65,025,562 $ - $ - 65,025,562 Not Subject to Categorization: Minnesota Municipal Investment Pool 3,816,712 Money Market Mutual Funds 1,791,587 Total Deposits 1,166,039 Petty Cash 2,070 Total Cash and Investments $ 71,801,970 Total Cash and Investments is classified as follows: Cash and Investments 54,733,154 Restricted Investments 15,465,831 Cash - Fiduciary Funds 1,602,985 $ 71,801,970 B. Receivables Governmental funds report deferred revenue in connection with receivables for revenues that are not considered to be available to liquidate liabilities of the current period. Governmental funds also defer revenue recognition in connection with resources that have been received, but not yet earned. At the end of the current fiscal year, the various components of deferred revenue reported in the governmental funds were as follows: 55 CITY OF SHAKOPEE Scott County, Minnesota NOTES TO THE FINANCIAL STATEMENTS For the Year Ended December 31,2003 Unavailable Delinquent Property Taxes Receivable (General Fund) $ 74,992 Delinquent Property Taxes Receivable (Other Government Funds) 4,719 Special Assessments Not Yet Due (General Fund) 27,193 Special Assessments Not Yet Due (Improvement Bonds of2002B) 3,574,556 Special Assessments Not Yet Due (Other Governmental Funds) 3,254,465 Total Deferred/Unearned Revenue.for Governmental Funds $ 6,935,925 56 CITY OF SHAKOPEE Scott County, Minnesota NOTES TO THE FINANCIAL STATEMENTS For the Year Ended December 31, 2003 NOTE 3 - DETAILED NOTES ON ALL FUNDS C. Capital Assets Capital asset activity for the year ended December 31, 2003 was as follows: Beginning Ending Balance Increases Decreases Balance Governmental Activities: Capital Assets, Not Being Depreciated: Land $ 8,886,712 $ 2,183,127 $ (15,380) $ 11,054,459 Total Capital Assets, Not Being Depreciated 8,886,712 2,183,127 (15,380) 11,054,459 Capital Assets, Being Depreciated: Buildings 1,066,588 15,922,313 - 16,988,901 Improvements Other Than Buildings 99,038,618 5,679,480 - 104,718;098 Machinery and Equipment 1,775,176 5,938,111 (282,665) 7,430,622 Total Capital Assets Being Depreciated 101,880,382 27,539,904 (282,665) 129,137,621 Less Accumulated Depreciation for: Buildings 1,952,443 300,175 - 2,252,618 Improvements Other Than Buildings 21,717,951 3,299,258 - 25,017,209 Machinery and Equipment 2,664,537 504,892 (140,934) 3,028,495 Total Accumulated Depreciation 26,334,931 4,104,325 (140,934) 30,298,322 Total Capital Assets, Being Depreciated, Net 128,215,313 31,644,229 (423,599) 159,435,943 Governmental Activities Capital Assets, Net $137,102,025 $33,827,356 $ (438,979) $170,490,402 57 CITY OF SHAKOPEE Scott County, Minnesota NOTES TO THE FINANCIAL STATEMENTS For the Year Ended December 31,2003 NOTE 3 - DETAILED NOTES ON ALL FUNDS C. Capital Assets (Continued) Beginning Ending Balance Increases Decreases Balance Business Type Activities: Capital Assets, Not Being Depreciated: Land $ 379,309 $ 3,039,688 $ (143,430) $ 3,275,567 Construction in Progress $ 2,419,994 $ 6,145,480 $ - $ 8,565,474 Total Capital Assets, Not Being Depreciated 2,799,303 9,185,168 (143,430) 11,841,041 Capital Assets, Being Depreciated: Buildings and System 99,331,502 11,753,155 (2,502,144) 108,582,513 Machinery and Equipment 655,293 167,638 (98,319) 724,612 Total Capital Assets Being Depreciated 99,986,795 11,920,793 (2,600,463) 109,307,125 Less Accumulated Depreciation for: Buildings and System 18,101,294 2,482,035 (1,272,086) 19,311,243 Machinery and Equipment 325,647 51,255 (64,322) 312,580 Total Accumulated Depreciation 18,426,941 2,533,290 (1,336,408) 19,623,823 Total Capital Assets, Being Depreciated, Net 118,413,736 14,454,083 (3,936,871) 128,930,948 Business Type Activities Capital Assets, Net $121,213,039 ########## $ (4,080,301) $140,771,989 58 CITY OF SHAKOPEE Scott County, Minnesota NOTES TO THE FINANCIAL STATEMENTS For the Year Ended December 31, 2003 Depreciation expense was charged to functions/programs ofthe government as follows: General Government $ 161,618 Public Safety 300,995 Public Works 3,479,017 Park And Recreation 162,695 Total Depreciation Expense - Governmental Activities $ 4,104,325 Business-type Activities: Electric $ 816,408 Water 617,084 Sanitary Sewer $ 406,222 Storm Drainage $ 493,453 Recreation $ 8,566 internal Service Fund 191,557 Total Depreciation Expense - Business-type Activities $ 2,533,290 59 CITY OF SHAKOPEE Scott County, Minnesota NOTES TO THE FINANCIAL STATEMENTS For the Year Ended December 31, 2003 NOTE 3 - DETAILED NOTES ON ALL FUNDS D. Long-term Debt General Obligation and Tax Increment Bonds The City issues general obligation bonds to provide for financing tax increment projects and street improvements. Debt service is covered respectively by tax increments and special assessments against benefited properties with any shortfalls being paid from general taxes. General obligation bonds are direct obligations and pledge the full faith and credit of the government. These bonds generally are issued as serial bonds with equal debt service payments each year. General obligation bonds currently outstanding are as follows: Revenue Bonds The City has issued revenue bonds for Electric, Water and Storm Drainage activity. Debt service is covered through the revenue-producing activities of these funds. 60 CITY OF SHAKOPEE Scott County, Minnesota NOTES TO THE FINANCIAL STATEMENTS For the Year Ended December 31,2003 NOTE 3 - DETAILED NOTES ON ALL FUNDS D. Long-term Debt (Continued) Components of Long-Term Liabilities Issue Interest Original Final Principal Due Within Date Rates Issue Maturity Outstanding One Year Governmental Activities: General Obligation Bonds, Including General Obligation Tax Increment Bonds: General Obligation Building Bonds 1997 A 6/1/97 4.85 - 5.50% $ 3,140,000 2/1/17 $ 2,445,000 $ 125,000 General Obligation Improvement Bonds 1991A 10/1/91 6.10% 1,725,000 2/1/03 - - General Obligation Improvement Bonds 1992A 12/1/92 5.70% 1,665,000 2/1/04 130,000 130,000 General Obligation Improvement Bonds 1995A I 1/1/95 4.75 - 5.1 0% 3,180,000 2/1/07 815,000 210,000 General Obligation Improvement Bonds 1996A 12/1/96 4.60 - 4.80% 2,555,000 2/1/08 850,000 175,000 General Obligation Improvement Bonds 1997B 11/5/97 4.40 - 4.75% 1,805,000 2/1/09 595,000 105,000 General Obligation Improvement Bonds 1998A 7/1/98 4.13 - 4.40% 4,495,000 2/1/09 - General Obligation Improvement Bonds 1998B 12/1/98 4.00 - 4.40% 2,375,000 2/1/10 1,560,000 330,000 General Obligation Improvement Bonds 2000A 9/19/00 4.45 - 4.95% 2,560,000 2/1/11 1,985,000 285,000 General Obligation Improvement Bonds 2002A 2/1/02 3.00 - 4.30% 1,185,000 2/1/12 1,160,000 120,000 General Obligation Improvement Bonds 2002B 7/1/02 2.00 - 4.1 0% 3,750,000 2/1/13 3,750,000 295,000 General Obligation Improvement Bonds 2003A 7/1103 2.00 - 3.00% 2,2]5,000 2/1/14 2,215,000 - Total General Obligation Bonds 15,505,000 1,775,000 General Obligation Tax Increment Refunding Bonds 1993A 7/1/93 4.90% 2,675,000 2/1/03 - Total Bonds 15,505,000 ],775,000 Compensated Absences 900,097 Total Governmental Activities $ 16,405,097 $ 1,775,000 61 CITY OF SHAKOPEE Scott County, Minnesota NOTES TO THE FINANCIAL STATEMENTS For the Year Ended December 31, 2003 NOTE 3 - DETAILED NOTES ON ALL FUNDS D. Long-term Debt (Continued) Components of Long-Term Liabilities (Continued) Issue Interest Original Final Principal Due Within Date Rates Issue Maturity Outstanding One Year Business-type Activities Revenue Bonds: Utility Revenue Bonds 1993 8/24/93 5.25 - 5.60% $ 4,250,000 8/1/18 $ 9,640,000 $ 125,000 Utility Revenue Bonds 1999 12/6/99 5.00 - 6.00% 9,850,000 2/1/28 - Utility Revenue Bonds 2001 6/1/0 I 4.25-5.12% 12,000,000 2/1/30 11,780,000 225,000 Utility Refunding Revenue Bonds 2003A 5/1/03 2.25-4.45% 3,385,000 8/1/18 3,385,000 160,000 General Obligation Utility Revenue Bonds 1995B 11/1/95 4.75 - 5.00% 1,150,000 2/1/06 410,000 130,000 Total Business-type Activities Revenue Bonds $ 25.215,000 $ 640,000 Long-term bonded indebtedness listed above were issued to finance acquisition and construction of capital facilities or to refinance (refund) previous bond issues. Changes in Long-term Liabilities Long-term liability activity for the year ended December 31, 2003, was as follows: Beginning Ending Balance Change Balance Governmental Actvitites: Bonds Payable: General Obligation Bonds $ 16,620,000 $ (1,115,000) $ 15,505,000 General Obligation Tax Increment Bonds 390,000 (390,000) - Compensated Absences 830,640 69,457 900,097 Total Governmental Activities $ 17,840,640 $ (1,435,543) $ 16,405,097 Business-type activities: Revenue Bonds $ 25,660,000 $ (445,000) $ 25,215,000 Total Business-type Activities $ 25,660,000 $ (445,000) $ 25,215,000 The General Fund typically liquidates the liability related to compensated absences. 62 CITY OF SHAKOPEE Scott County, Minnesota NOTES TO THE FINANCIAL STATEMENTS For the Year Ended December 31, 2003 NOTE 3 - DETAILED NOTES ON ALL FUNDS D. Long-term Debt (Continued) Debt service to maturity for outstanding bonds is as follows: Governmental Activity General Obligation Bonds Principal Interest Total 2004 $ 1,775,000 $ 593,571 $ 2,368,571 2005 1,975,000 512,048 2,487,048 2006 2,380,000 433,862 2,813,862 2007 2,100,000 350,429 2,450,429 2008 1,865,000 273,392 2,138,392 2009-2013 4,350,000 664,154 5,014,154 2014-2017 1,060,000 103,959 1,163,959 Total $ 15,505,000 $ 2,931,415 $ 18,436,415 Business-type Activity Revenue Bonds Principal Interest Total 2004 $ 640,000 $ 1,302,845 $ 1,942,845 2005 665,000 1,244,653 1,909,653 2006 710,000 1,217,021 1,927,021 2007 565,000 1,190,921 1,755,921 2008 595,000 1,167,896 1,762,896 2009-2013 3,420,000 5,435,589 8,855,589 2014 - 2018 4,335,000 4,532,882 8,867,882 2019-2023 5,295,000 3,286,618 8,581,618 2024-2028 7,455,000 1,490,840 8,945,840 2029-2030 1,535,000 79,822 1,614,822 Total $ 25,215,000 $ 20,949,087 $ 46,164,087 63 CITY OF SHAKOPEE Scott County, Minnesota NOTES TO THE FINANCIAL STATEMENTS For the Year Ended December 31,2003 NOTE 3 - DETAILED NOTES ON ALL FUNDS E. Conduit Debt Obligations Conduit debt obligations are certain limited-obligation revenue bonds or similar debt instruments issued for the express purpose of providing capital financing for a specific third party. The City has issued various Revenue Bonds to provide funding to private-sector entities for projects deemed to be in the public interest. Although these bonds bear the name ofthe City, the City has no obligation for such debt beyond the resources provided by related leases or loans. Accordingly, the bonds are not reported as liabilities in the financial statements of the City. As of December 31,2003, the following conduit debt was outstanding: Balance Outstanding Original as of Date of Amount December 31, Project Issue ofIssue Retired 2003 Industrial Development Revenue Bonds: MEBCO 7/1189 $ 2,300,000 $ 450,000 $ 1,850,000 St. Francis RMC 9/23/98 12,036,000 776,167 11,259,833 Total $ 14,336,000 $ 1,226,167 $ 13,109,833 F. Interfund Assets/Liabilities The composition of inter fund balances as of December 31, 2003 is as follows: Receivable Fund Payable Fund Amount General Fund Nonmajor Governmental Funds $ 549,719 Electric Fund Sewer Fund 24,939 Water Fund Storm Drainage Fund 8,313 $ 582,971 64 CITY OF SHAKOPEE Scott County, Minnesota NOTES TO THE FINANCIAL STATEMENTS For the Year Ended December 31, 2003 NOTE 3 - DETAILED NOTES ON ALL FUNDS F. Interfund Assets/Liabilities (Continued) Advances to/from other funds: Receivable Fund Payable Fund Amount General Fund Electric Fund $ 42,344 General Fund Water Fund 78,025 $ 120,369 With the exception of the amount between the General Fund and the Electric and Water Funds, which recognized the current portion of an advance, the Due from/Due to Other Funds balances represent borrowing to resolve deficit cash balances. Advances to/from Other Funds represent funding for capital and construction activity. G. Transfers Governmental Activities Nonmajor Governmental Building Funds Fund Transfer Out: Transfer In: General Fund $ 52',950 $ 1,000,000 Nonmajor Governmental Funds 357,571 - Total $ 410,521 $ 1,000,000 65 CITY OF SHAKOPEE Scott County, Minnesota NOTES TO THE FINANCIAL STATEMENTS For the Year Ended December 31, 2003 NOTE 3 - DETAILED NOTES ON ALL FUNDS G. Transfers (Continued) Governmental Activities (Continued) Transfers between Governmental Activities and Business-type Activities: Transfer In Governmental Activities Business-type Nonmajor Activities General Governmental Recreation Fund Funds Fund Transfer Out: Governmental Activities: General Fund $ - $ - $ 878,700 Business-type Activities: Water Fund 534,025 - - Electric Fund 588,326 - - Storm Fund - 200,000 - Total $ 1,122,351 $ 200,000 $ 878,700 These transfers were made to assist with financing of various activity in the recipient funds. NOTE 4 - OTHER INFORMATION A. Risk Management The City is exposed to various risks ofloss related to torts; theft of, damage to, and destruction of assets; errors and omissions and natural disasters for which the City carries insurance policies through a risk pool from the League of Minnesota Cities Insurance Trust. The City retains risk for the deductible portions of the insurance policies. The amount of these deductibles ranges from $ 2,500 to $ 5,000. There were no significant reductions in insurance from the previous year or settlements in excess of insurance coverage for any of the past three years. Through the pool the City is subject to reassessment but, due to reserves and reinsurance contracts, the likelihood is very low. The policy limits through the pool included $ 1,000,000 aggregate for property/liability, $ 1,000,000 for automobile coverage and $ 50,000 faithful performance employee bonding. 66 CITY OF SHAKOPEE Scott County, Minnesota NOTES TO THE FINANCIAL STATEMENTS For the Year Ended December 31, 2003 NOTE 4 - OTHER INFORMATION B. Employee Retirement Systems and Pension Plans Pension Plans - Primary Government 1. Defined Benefit Pension Plans - Statewide Plan Description All full-time and certain part-time employees of the City of Shako pee are covered by defined benefit pension plans administered by the Public Employees Retirement Association of Minnesota (PERA). PERA administers the Public Employees Retirement Fund (PERF) and the Public Employees Police and Fire Fund (PEPFF) which are cost- sharing, multiple-employer retirement plans. These plans are established and administered in accordance with Minnesota Statutes, Chapters 353 and 356. PERF members belong to either the Coordinated Plan or the Basic Plan. Coordinated Plan members are covered by Social Security and Basic Plan members are not. All new members must participate in the Coordinated Plan. All police officers, firefighters and peace officers who qualify for membership by statute are covered by the PEPFF. PERA provides retirement benefits as well as disability benefits to members, and benefits to survivors upon death of eligible members. Benefits are established by state statute, and vest after three years of credited service. The defined retirement benefits are based on a member's highest average salary for any five successive years of allowable service, age and years of credit at termination of service. Two methods are used to compute benefits for PERF's Coordinated and Basic Plan members. The retiring member receives the higher of a step-rate benefit accrual formula (Method 1) or a level accrual formula (Method 2). Under Method 1, the annuity accrual rate for a Basic Plan member is 2.2% of average salary for each of the first 10 years of service and 2.7% for each remaining year. The annuity accrual rate for a Coordinated Plan member is 1.2% of average salary for each of the first 10 years and 1.7% for each remaining year. Under Method 2, the annuity accrual rate is 2.7% of average salary for Basic Plan members and 1.7% for Coordinated Plan members for each year of service. For PEPFF members, the annuity accrual rate is 3.0% for each year of service. 67 CITY OF SHAKOPEE Scott County, Minnesota NOTES TO THE FINANCIAL STATEMENTS For the Year Ended December 31, 2003 NOTE 4 - OTHER INFORMATION B. Employee Retirement Systems and Pension Plans (Continued) Pension Plans - Primary Government (Continued) 1. Defined Benefit Pension Plans - Statewide (Continued) Plan Description (Continued) For all PEPFF members and for PERF members hired prior to July 1,1989, whose annuity is calculated using Method 1, a full annuity is available when age plus years of service equal 90. Normal retirement age is 55 for PEPFF members and 65 for Basic and Coordinated members hired prior to July 1, 1989. Normal retirement age for unreduced Social Security benefits capped at 66 for Coordinated Plan members hired on or after July 1, 1989. A reduced retirement annuity is also available to eligible members seeking early retirement. There are different types of annuities available to members upon retirement. A single-life annuity is a lifetime annuity that ceases upon the death of the retiree - no survivor annuity is payable. There are also various types of joint and survivor annuity options available which will be payable over joint lives. Members may also leave their contributions in the fund upon termination of public service in order to qualify for a deferred annuity at retirement age. Refunds of contributions are available at any time to members who leave public service, but before retirement benefits begin. The benefit provisions stated in the previous paragraphs ofthis section are current provisions and apply to active plan participants. Vested, terminated employees who are entitled to benefits but are not receiving them yet are bound by the provisions in effect at the time they last terminated their public. service. PERA issues a publicly available financial report that includes financial statements and required supplementary information for PERF and PEPFF. That report may be obtained on the web at www.mnpera.org, by writing to PERA, 60 Empire Drive, #200, St. Paul, Minnesota, 55103-2088 or by calling (651) 296-7460 or (800) 652-9026. 68 CITY OF SHAKOPEE Scott County, Minnesota NOTES TO THE FINANCIAL STATEMENTS For the Year Ended December 31, 2003 NOTE 4 - OTHER INFORMATION B. Employee Retirement Systems and Pension Plans (Continued) Pension Pans - Primary Government (Continued) 1. Defined Benefit Pension Plans - Statewide (Continued) Funding Policy Minnesota Statutes Chapter 353 sets the rates for employer and employee contributions. These statutes are established and amended by the state legislature. . The City makes annual contributions to the pension plans equal to the amount required by state statutes. PERF Basic Plan members and Coordinated Plan members are required to contribute 9.10% and 5.10%, respectively, of their annual covered salary. PEPFF members are required to contribute 6.20% of their annual. covered salary. The City of Shakopee is required to contribute the following percentages of annual covered payroll: 11.78% for Basic Plan PERF members, 5.53% for Coordinated Plan PERF members and 9.30% for PEPFF members. The City's contributions to the Public Employees Retirement Fund for the years ending December 31,2003,2002 and 2001 were $ 286,558, $ 264,141 and $ 209,707, respectively. The City's contributions to the Public Employees Police and Fire Fund for the years ending December 31, 2003, 2002 and 2001 were $ 170,976, $ 155,213 and $ 129,366, respectively. The City's contributions were equal to the contractually required contributions for each year as set by state statute. 2. Shakopee Volunteer Fire Relief Association Plan Description , The City contributes to the Shakopee Volunteer Fire Department Relief Association that provides pension benefits to its members under a defined contribution plan. Since fire department members are volunteers, contributions to the Relief Association are not based on payroll, but rather on years of active service. All active firefighters may apply for membership in the Relief Association and shall become a member immediately upon approval by the Board of Trustees. Under an Annual Contribution Agreement, the City's contribution to the Relief Association is determined by multiplying $ 5,750 by the number of years of active service completed by members of the Association for the plan year, prorated by months for members who did not complete a full year of active service. Required and actual employer contributions to the plan during 2003 were $ 222,471. Members ofthe Relief Association are not allowed to make voluntary contributions to the plan. 69 CITY OF SHAKOPEE Scott County, Minnesota NOTES TO THE FINANCIAL STATEMENTS For the Year Ended December 31, 2003 NOTE 4 - OTHER INFORMATION B. Employee Retirement Systems and Pension Plans (Continued) Pension Pans - Primary Government (Continued) 3. Post-Retirement Benefits City employees are eligible to participate in COBRA provisions after severing employment or MN Chapter 488 after retirement, which allows employees to continue coverage on the City's health insurance plan under certain provisions. Currently, the City has eleven former employees participating under the MN Chapter 488 provision and two disabled at the end of2003. The participants pay for the premium under the above prOVISIons. NOTE 5 - CONTINGENT LIABILITIES AND COMMITMENTS The City has several claims and/or lawsuits against it for street/sidewalk traffic accidents. Whatever the outcome ofthe individual situation is, it is expected that there will be no. material financial impact on the City. There are various uncompleted construction contracts as of year end totaling approximately $ 503,489 for work yet to be done. Completed work is reflected in the financial statements, work yet to be done is not. NOTE 6 - SUBSEQUENT EVENTS The City issued 2004A General Obligation Improvement Bonds totaling $ 4,225,000. The City also issued 2004B General Obligation Building Refunding Bonds for $ 2,280,000 70 CITY OF SHAKO PEE Scott County, Minnesota NON-MAJOR GOVERNMENTAL FUNDS COMBUUNGBALANCESHEET December 31,2003 Special Revenue Debt Service Total Economic Special 1992 A 1995 A 1996 A 1997 A Tele- Development Revenue hnprovement hnprovement Improvement Fire Forfeiture Transit communication Authority Funds Bonds Bonds Bonds Bonds ASSETS Cash and Investments (Including Cash Equivalents) $ 83,554 $ 1,020,721 $ 307,069 $ 391,326 $ 1,802,670 $ 134,080 $ 431,246 $ 638,499 $ 297,657 Interest Receivable 514 5,265 2,396 2,364 10,539 2,560 3,862 956 Accounts Receivable 547 60,968 48,833 24,685 135,033 Delinquent Taxes Receivable 339 576 915 3,804 Special Assessments Receivable: Delinquent 156 2,120 Deferred - 270,847 94,025 Prepaid Items - 5,560 - 5,560 - Total Assets $ 84,615 $ 1.092,853 $ 358,298 $ 418,951 $ \,954,717 $ 134,080 $ 704,809 $ 738.506 $ 302,417 LIABILITIES Accounts Payable $ 157 $ 129,437 $ 223 $ 21,586 $ 151,403 $ 375 $ 375 $ 375 $ 200 Contracts Payable - - Due to Other Funds - - Due to Other Governments 19,000 19,000 - Interest Payable - - - Compensated Absences 929 3,786 4,715 - Deferred Revenue 339 - 576 915 271,003 96,145 3,804 Total Liabilities 157 148,776 1,152 25,948 176,033 375 271,378 96,520 4,004 FUND BALANCES Reserved 84,458 944,077 357,146 393,003 1,778,684 133,705 433,431 641,986 298,413 Unreserved: Undesignated - - Total Fund Balances 84,458 944,077 357,146 393,003 1,778,684 133,705 433,431 641,986 298,413 Total Liabilities and Fund Balances $ 84,615 $ 1 ,092,853 $ 358,298 $ 418,951 $ 1,954.717 $ 134,080 $ 704,809 $ 738.506 $ 302,417 71 CITY OF SHAKOPEE Scott County, Minnesota NON-MAJOR GOVERNMENTAL FUNDS COMBll<<NGBALANCESHEET December 31, 2003 (Continued) Debt Service Total 1997B 1998B 2000 A 2002 A 2003 A Debt Improvement Improvement Improvement Improvement Improvement Service Bonds Bonds Bonds Bonds Bonds Funds ASSETS Cash and Investments (Including Cash Equivalents) $ 253,366 $ 1,361,791 $ 768,584 $ 297,318 $ 1,552,955 $ 5,735,496 Interest Receivable 1,137 7,970 3,511 835 3,098 23,929 Accounts Receivable Delinquent Taxes Receivable - - 3,804 Special Assessments Receivable: Delinquent 61,296 530 - 64,102 Deferred 195,065 305,794 647,904 255,073 632,582 2,401,290 Prepaid Items Total Assets $ 510,864 $ 1.676,085 $ 1,419,999 553,226 $ 2,188,635 $ 8,228,621 LIABILITIES Accounts Payable $ 200 $ $ $ - $ $ 1,525 Contracts Payable - Due to Other Funds - Due to Other Governments - Interest Payable Compensated Absences Deferred Revenue 256,361 306,324 647,904 255,073 632,582 2,469,196 Total Liabilities 256,561 306,324 647,904 255,073 632,582 2,470,721 FUND BALANCES Reserved 254,303 1,369.761 772,095 298,153 1,556,053 5,757,900 Unreserved: Undesignated - Total Fund Balances 254,303 1,369,761 772,095 298,153 1,556,053 5,757,900 Total Liabilities and Fund Balances $ 510,864 $ 1.676,085 $ 1,419,999 $ 553,226 $ 2,188,635 $ 8,228,621 72 CITY OF SHAKO PEE Scott COllnty, Minnesota NON-MAJOR GOVERNMENTAL FUNDS COMBll<<NG BALANCE SHEET December 31, 2003 (Continued) Capital Projects Total Total Capital Non-major Park Capital TIF TIF East Dean's 2001/2002 2003 West Dean's 2004 Prqjects Governmental Reserve Improvements #10 #11 Lake Improvements Proj ects Lake Projects Funds Funds ASSETS Cash and Investments (Including Cash Equivalents) $ 2,632,138 $ 3,720,347 $ 7,182 $ 2,021 $ 592,713 $ 52,402 $ - $ $ $ 7,006,803 $ 14,544,969 Interest Receivable 15,642 28,912 12 250 3,671 48,487 82,955 Accounts Receivable 1,012 1,569 - - - 2,581 137,614 Delinquent Taxes Receivable 4,719 Special Assessments Receivable: Delinquent 288,956 - 288,956 353,058 Deferred 500,117 - - 500,117 2,901,407 Prepaid Items - - 5,560 Total Assets $ 2,648,792 $ 4,539,901 $ 7,194 $ 2,271 596,384 $ 52.402 $ $ $ $ 7,846,944 $ 18,030,282 LIABILITffiS Accounts Payable $ 62,321 $ 15,088 $ 10,439 $ $ $ 243 $ 56,427 $ 44,467 $ 9,045 $ 198,030 $ 350,958 Contracts Payable 51,519 176.449 25,892 41,619 295,479 295.479 Due to Other Funds 546,661 2,171 887 549.719 549,719 Due to Other Governments 19,000 Interest Payable - - - 542 1,015 1,557 1,557 Compensated Absences - 4,715 Deferred Revenue 789,073 - 789,073 3,259,184 Total Liabilities 113,840 980,610 10,439 26,677 645,722 46,638 9,932 1,833,858 4.480,612 FUND BALANCES Reserved 2,534,952 3,559,291 2,271 596,384 25,725 6.718,623 14,255,207 Unreserved: Undesignated (3,245) (645,722) (46,638) (9,932) (705,537) (705,537) Total Fund Balances 2,534,952 3,559,291 (3,245) 2,271 596,384 25,725 (645,722) (46,638) (9,932) 6,013,086 13,549,670 Total Liabilities and Fund Balances $ 2,648,792 $ 4,539,901 $ 7,194 $ 2,271 $ 596,384 $ 52.402 $ $ $ $ 7,846,944 $ 18,030,282 73 CITY OF SHAKOPEE Scott County, Minnesota NON-MAJOR GOVERNMENTAL FUNDS COMBINING STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES For tbe Year Ended December 31, 2003 Special Revenue Debt Service Total 1993 A Economic Special 1991 A 1992 A TIF 1995 A Tele- SCDP Development Revenue Improvement Improvement Refunding Improvement Forfeiture Transit cOlmmmication Grant Authority Funds Bouds Bonds Bonds Bonds REVENUES Property Taxes $ $ 943 $ $ $ 74,618 $ 75,561 $ $ $ $ Tax Increments Special Assessments 733 4,306 49,784 Intergovemmental: COlmty Grants 58,322 58,322 State Grants 1,650 827,798 829,448 Federal Grants 291,522 291,522 Licenses and Permits 191,223 191,223 Charges for Services 44,739 967 45,706 Fines and Forfeitures 35,995 35,995 Miscellaneous: Investment Income 2,454 29,068 14,823 6,901 53,246 4,016 Other 8,577 16,593 25,170 Total Revenues 48,676 902,548 223,606 291,522 139,841 1,606,193 733 4,306 53,800 EXPENDITURES Current: Wages, Salaries, and Compensation 6,925 58,850 74,683 140,458 Materials and Supplies 13,704 13,544 12,317 42 39,607 Other Services and Charges 8,400 502,614 84,866 300,238 15,071 911,189 Miscellaneous 111,272 111,272 Debt Service: Principal 150,000 155,000 390,000 210,000 Interest and Fiscal Charges 4,575 13,904 10,117 45,980 Capital Outlay: Engineering Professional Fees - Machinery and Equipment 10,851 808 122,511 134,170 Other Improvements - Miscellaneous Total Expenditures 32,955 523,891 278,544 300,238 201,068 1,336,696 154,575 168,904 400,117 255,980 Excess (Deficiency) ofRevenues Over (Under) Expenditures 15,721 378,657 (54,938) (8,716) (61,227) 269,497 (153,842) (164,598) (400,117) (202,180) OTHER FINANCING SOURCES (USES) Bonds Proceeds Proceeds from Sale of Property Transfers In 52,950 52,950 55,863 450 Transfers Out (100,222) Total Other Financing Sources and (Uses) 52,950 52,950 55,863 (100,222) 450 Net Change in FWld Balances 15,721 378,657 (54,938) (8,716) (8,277) 322,447 (97,979) (264,820) (399,667) (202,180) FWld Balances - Beginning 68,737 565,420 412,084 8,716 401,280 1,456,237 97,979 398,525 399,667 635,611 Fund Balances - Ending $ 84,458 $ 944,077 $ 357,146 $ $ 393,003 $ 1,778,684 $ $ 133,705 $ $ 433,431 74 CITY OF SHAKOPEE Scott County, Minnesota NON-MAJOR GOVERNMENTAL FUNDS COMBINING STATEMENT OF REVENUES, ExPENDITURES, AND CHANGES IN FUND BALANCES For the Year Ended December 31, 2003 (Continued) Debt Service Capital Projects Total 1996 A 1997 A 1997B 1998 A 1998 B 2000 A 2002 A 2003 A Debt Improvement Fire Improvement Improvement Improvement Improvement Improvement Improvement Service Park Capital Bonds Bonds Bonds Bonds Bonds Bonds Bonds Bonds Funds Reserve Improvements REVENUES Property Taxes $ $ 264,383 $ 30,210 $ $ $ 47,105 $ 94,434 $ $ 436,132 $ $ Tax Increments Special Assessments 37,421 92,806 142,800 243,318 128,689 1,466,459 2,166,316 278,088 Intergovernmental: County Grants State Grants 28,078 28,078 330,274 Federal Grants 1,727 Licenses and Permits 1,329,970 Charges for Services 92 Fines and Forfeitures Miscellaneous: Investment Income 866 340 - 19,704 1,196 30,700 56,822 90,960 82,794 Other 1,000 Total Revenues 38,287 264,723 123,016 190,582 290,423 224,319 1,497,159 2,687,348 1,422,022 692.883 ExPENDITURES Current: Wages, Salaries, and Compensation - Materials and Supplies 12,104 3,616 Other Services and Charges - 911 2,007 Miscellaneons Debt Service: Principal 325,000 120,000 195,000 1,565,000 260,000 325,000 25,000 3,720,000 Interest and Fiscal Charges 47,925 132,100 33,353 70,440 70,355 105,743 44,836 558 579,886 Capital Outlay: Engineering - 92,996 207,424 Professional Fees - 107,285 64,853 Machinery and Equipment 69,245 27,448 Other Improvements 732,134 1,726,527 Miscellaneous Total Expenditures 372,925 252,100 228.353 1,635,440 330,355 430,743 69,836 558 4,299,886 1,014,675 2,031,875 Excess (Deficiency) of Revenues Over (Under) Expenditures (334,638) 12,623 (105,337) (1,635,440) (139,773) (140,320) 154,483 1,496,601 (1,612,538) 407,347 (1,338,992) OTHER FINANCING SOURCES (USES) Bonds Proceeds 59,452 59,452 1,239,586 Proceeds from Sale of Property 41,761 Transfers In 56,313 50 I ,258 Transfers Out (256,899) (357,121) Total Other Financing Sources and (Uses) (256,899) 59,452 (241,356) 41,761 I ,740,844 Net Change in Fund Balances (334,638) 12,623 (105,337) (1,892,339) (139,773) (140,320) 154,483 1,556,053 (1,853,894) 449,108 401,852 Fund Balances. Beginning 976,624 285,790 359,640 1,892,339 1,509,534 912,415 143,670 7,611,794 2,085,844 3,157,439 Fund Balances - Ending $ 641 ,986 $ 298,413 $ 254,303 $ $ 1.369.761 $ 772,095 $ 298,153 $ 1,556,053 $ 5,757,900 $ 2,534,952 $ 3,559.291 75 CITY OF SHAKOPEE Scott County, Minnesota NON-MAJOR GOVERNMENTAL FUNDS COMBINING STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES For the Year Ended December 31,2003 (Continued) Capital Projects Total Total Capital Non-m~jor TlF TIF TIF East Dean's DNR 200\12002 2003 West Dean's 2004 Projects Governmental #1 #10 #11 Lake Trail Improvements Projects Lake Projects Funds Funds REVENUES Property Taxes $ $ $ $ $ $ $ $ $ $ $ 511.693 Tax Increments 20,879 486,827 507,706 507.706 Special Assessments 278,088 2,444,404 Intergovernmental; COlll1ty Grants 58.322 State Grants 330,274 1,187,800 Federal Grants - 1,727 293,249 Licenses and Pennits 1,329,970 1,521,193 Charges for Services 92 45,798 Fines and Forfeitures 35.995 Miscellaneons: Investment Income 12,577 454 2,793 189,578 299,646 Other 1,000 26,170 Total Revenues 20,879 486,827 12,577 454 2,793 2,638,435 6,931,976 EXPENDITURES Current: Wages, Salaries, and Compensation 140.458 Materials and Supplies 15,720 55,327 Other Services and Charges - 491 3,409 914,598 Miscellaneous 111,272 Debt Service; Principal 3,720,000 Interest and Fiscal Charges 579,886 Capital Ontlay: Engineering 16,536 249,532 45,900 9,932 622,320 622,320 Professional Fees 13,363 21,699 688 207,888 207,888 Machinery and Equipment 96,693 230,863 Other hnprovements 101,142 352,673 2,912,476 2,912,476 Miscellaneous 139,290 20,909 522,836 9,952 50 693,037 693.037 Total Expenditures 139,290 20,909 522,836 131,532 633,856 46,638 9,932 4,551,543 10,188,125 Excess (Deficiency) ofRevennes Over (Under) Expenditures (139,290) (30) (36,009) 12,577 454 (128,739) (633,856) (46,638) (9,932) (1,913,108) (3,256,149) .OTHER FINANCING SOURCES (USES) Bonds Proceeds 916,529 2,156,115 2,215.567 Proceeds from Sale of Property 41,761 41,761 Transfers In 50 I ,258 610,521 Transfers Out (450) (450) (357,571) Total Other Financing Sources and (Uses) (450) 916,529 2,698,684 2,510,278 Net Change in Flll1d Balances (139,740) (30) (36,009) 12,577 454 787,790 (633,856) (46,638) (9,932) 785,576 (745,871 ) Fund Balances - Beginning 139,740 (3,215) 38,280 583,807 (454) (762,065) (11,866) 5,227,510 14,295,541 Fund Balances - Ending $ $ 0,245) $ 2.271 $ 596,384 $ $ 25,725 $ (645.722) $ (46,638) $ (9,932) $ 6.013,086 $ 13,549.670 76 CITY OF SHAKO PEE Scott County, Minnesota GENERAL FUND SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES - BUDGET AND ACTUAL For the Year Ended December 31, 2003 Variance with Budgeted Amounts Final Budget - Actual Positive Original Final Amounts (Negative) REVENUES Property Taxes: General Property Taxes $ 6,661,810 $ 6,661,810 $ 6,222,313 $ (439,497) Excess Tax Increment - - 45,148 45,148 Fiscal Disparities 556,760 556,760 514,954 (41,806) Lodging Tax 185,000 185,000 176,363 (8,637) Aggregate Tax 15,000 15,000 13,522 (1,478) Total Property Taxes 7,418,570 7,418,570 6,972,300 (446,270) Special Assessments: Principal - - 10,641 10,641 Interest - - 242 242 Prepaids - - 4,687 4,687 Total Special Assessments - - 15,570 15,570 Licenses and Permits 1,877,800 1,935,300 3,227,264 1,291,964 Intergovernmental Revenues: Federal Grants - 76,000 80,602 4,602 PERA Aid 11,930 11 ,930 11,933 3 Police State Aid 105,000 105,000 167,083 62,083 Other Grants and Aids 15,000 227,000 275,711 48,711 Total Intergovernmental Revenues 131,930 419,930 535,329 115,399 Charges for Services: General Government 144,300 144,300 214,180 69,880 Public Safety 171,500 171,500 176,432 4,932 Public Works 560,000 560,000 1,090,528 530,528 Park and Recreation - - 10,474 10,474 Total Charges for Services 875,800 875,800 1,491,614 615,814 Fines and Forfeitures 240,000 240,000 239,588 (412) Miscellaneous: Investment Income 150,000 150,000 222,061 72,061 Rents 11 ,000 11,000 3,842 (7,158) Contributions - - 500 500 Other 80,000 80,000 45,254 (34,746) Total Miscellaneous 241,000 241,000 271,657 30,657 Total Revenues 10,785,100 11,130,600 12,753,322 1,622,722 77 CITY OF SHAKOPEE Scott County, Minnesota GENERAL FUND SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES - BUDGET AND ACTUAL For the Year Ended December 31, 2003 (Continued) Variance with Budgeted Amounts Final Budget - Actual Positive Original Final Amounts (Negative) EXPENDITURES General Government: Mayor and Council $ 85,110 $ 78,710 $ 71,310 $ 7,400 Administration 527,720 512,780 467,083 45,697 City Clerk 290,025 290,025 232,777 57,248 Finance 627,660 598,680 582,421 16,259 Legal 443,200 422,200 276,668 145,532 Planning 620,710 580,220 481,866 98,354 Government Buildings 339,980 336,980 300,793 36,187 Total General Government 2,934,405 2,819,595 2,412,918 406,677 Public Safety: Police 3,284,010 3,143,110 3,115,830 27,280 Fire 1,025,870 995,570 975,656 19,914 Building Inspection 604,250 632,580 645,030 (12,450) Total Public Safety 4,914,130 4,771,260 4,736,516 34,744 Public Works: Engineering 690,450 649,010 602,541 46,469 Streets 1,105,200 1,033,200 896,945 136,255 Shop 246,270 221,270 197,627 23,643 Total Public Works 2,041,920 1,903,480 1,697,113 206,367 Park and Recreation 744,500 705,000 669,570 35,430 Miscellaneous 320,000 495,000 317,167 177,833 Total Expenditures 10,954,955 10,694,335 9,833,284 861,051 Excess of Revenues Over Expenditures (169,855) 436,265 2,920,038 2,483,773 OTHER FINANCING SOURCES (USES) Transfers. In 1,115,000 1,115,000 1,122,351 7,351 Transfers Out (932,520) (1,903,700) (1,931,650) (27,950) Total Other Financing Sources and (Uses) 182,480 (788,700) (809,299) (20,599) Net Change in Fund Balances $ 12.625 $ (352.435) 2,110,739 $ 2.463,174 Fund Balances - Beginning 3,534,080 Fund Balances - Ending $ 5.644.819 78 CITY OF SHAKOPEE Scott County, Minnesota SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES INFUNDBALANCE-BUDGETANDACTUAL TRANSIT Year Ended December 31,2003 Variance with Budgeted Amounts Final Budget- Positive Original Final Actual (Negative ) REVENUES: Property Taxes $ - $ - $ 943 $ 943 Intergovernmental: State Grants 217,000 699,660 827,798 128,138 Charges for Services 30,000 40,000 44,739 4,739 Miscellaneous: Investment Income 5,000 5,000 29,068 24,068 Total Revenues 252,000 744,660 902,548 157,888 EXPENDITURES: Public Works: Wages and Benefits 40,660 40,660 6,925 33,735 Supplies and Services 594,072 594,072 516,158 77,914 Capital Outlay - - 808 (808) Total Expenditures 634,732 634,732 523,891 110,841 EXCESS OF REVENUES OVER (UNDER) EXPENDITURES $ (382,732) $ 109,928 378,657 $ 47,047 FUND BALANCE - January 1 565,420 FUND BALANCE - December 31 $ 944,077 79 CITY OF SHAKOPEE Scott County, Minnesota SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE - BUDGET AND ACTUAL TELECOMMUNICATION Year Ended December 31, 2003 Variance with Budgeted Amounts Final Budget - Positive Original Final. Actual (Negative) REVENUES: Licenses and Permits $ 125,000 $ 125,000 $ 191,223 $ 66,223 Charges for Services - - 967 967 Miscellaneous: - - - - Investment Income 5,000 5,000 14,823 9,823 Other - - 16,593 16,593 Total Revenues 130,000 130,000 223,606 93,606 EXPENDITURES: General Government: Wages and Benefits 66,490 66,490 58,850 7,640 Supplies and Services 63,100 63,100 97,183 (34,083) Capital Outlay 175,000 175,000 122,511 52,489 Total Expenditures 304,590 304,590 278,544 26,046 EXCESS OF REVENUES OVER (UNDER) EXPENDITURES $ (174,590) $ (174,590) (54,938) $ 67,560 FUND BALANCE - January 1 412,084 FUND BALANCE - December 31 $ 357.146 80 CITY OF SHAKOPEE Scott County, Minnesota SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE - BUDGET AND ACTUAL ECONOMIC DEVELOPMENT AUTHORITY Year Ended December 31,2003 Variance with Budgeted Amounts Final Budget - Positive Original Final Actual (Negative) REVENUES: Property Taxes $ 80,000 $ 80,000 $ 74,618 $ (5,382) Intergovernmental: County Grants 40,000 40,000 58,322 18,322 Miscellaneous: Investment Income 20,000 20,000 6,901 (13,099) Total Revenues 140,000 140,000 139,841 (159) EXPENDITURES: General Government: Wages and Benefits 71,430 71,430 74,683 (3,253) Supplies and Services 27,500 27,500 15,113 12,387 Capital Outlay 60,000 60,000 111,272 (51,272) Total Expenditures 158,930 158,930 201,068 42,138 EXCESS OFREVENUES OVER (UNDER) EXPENDITURES (18,930) (18,930) (61,227) (42,297) OTHER FINANCING SOURCES: Transfers In 20,000 20,000 52,950 32,950 EXCESSOFREVENUESAND OTHER SOURCES OVER (UNDER) EXPENDITURES $ 1,070 $ 1,070 (8,277) $ (9,347) FUND BALANCE - January 1 401,280 FUND BALANCE - December 31 $ 393,003 81 CITY OF SHAKOPEE Scott County, Minnesota INTERNAL SERVICE FUNDS COMBINING STATEMENT OF FUND NET ASSETS December 31,2003 Total Internal Service Equipment Buildings Funds ASSETS: Current Assets: Investments $ 2,531,978 $ 1,684,454 $ 4,216,432 Interest Receivable 15,086 21,502 36,588 Long-term Receivable (Current Portion) 40,000 - 40,000 Total Current Assets 2,587,064 1,705,956 4,293,020 Noncurrent Assets: Long-term Receivable 71 0,000 - 710,000 Capital Assets: Land - 755,940 755,940 Buildings - 22,477,182 22,477,182 Equipment 5,968,275 - 5,968,275 Total Cost 5,968,275 23,233,122 29,201,397 Less: Accumulated Depreciation (2,594,661 ) (3,156,517) (5,751,178) Net Fixed Assets 3,373,614 20,076,605 23,450,219 Total Noncurrent Assets 4,083,614 20,076,605 24,160,219 Total Assets $ 6,670,678 $ 21,782,561 $ 28,453,239 LIABILITIES AND NET ASSETS: Liabilities: Current Liabilities: Accounts Payable $ 3,443 $ 16,916 $ 20,359 Contracts Payable - 142,260 142,260 Total Liabilities 3,443 159,176 162,619 Net Assets: Invested in Capital Assets 3,373,614 20,076,605 23,450,219 Unrestricted 3,293,621 1,546,780 4,840,401 Total net assets 6,667,235 21,623,385 28,290,620 Total liabilities and net assets $ 6,670,678 $ 21,782,561 $ 28,453,239 82 CITY OF SHAKOPEE Scott County, Minnesota INTERNAL SERVICE FUNDS COMBINING STATEMENT OF REVENUES, EXPENSES AND CHANGES IN FUND NET ASSETS For the Year Ended December 31,2003 Governmental Activities- Internal Service Funds Total Internal Service Equipment Buildings Funds Operating Revenues: Rental Charges $ 672,432 $ 439,631 $ 1,112,063 Total Operating Revenues 672,432 439,631 1,112,063 Operating Expenses: Depreciation 426,872 413,671 840,543 Total Operating Expenses 426,872 413,671 840,543 Operating Income 245,560 25,960 271,520 Nonoperating Revenues (Expenses): Investment Income (Expense) 114,292 (93,768) 20,524 Gain (Loss) on Disposa1of Assets (21,059) 127,705 106,646 Total Nonoperating Revenues (Expenses), Net 93,233 33,937 127,170 Income Before Contributions and Transfers 338,793 59,897 398,690 Capital Contributions - 11,009 11,009 Transfers In - 1,000,000 1,000,000 Change in Net Assets 338,793 1,070,906 1,409,699 Total Net Assets - Beginning 6,328,442 20,552,479 26,880,921 Total Net Assets - Ending $ 6,667,235 $ 21,623,385 $ 28,290,620 83 CITY OF SHAKOPEE Scott County, Minnesota INTERNAL SERVICE FUNDS COMBINING STATEMENT OF CASH FLOWS For the Year Ended December 31,2003 Governmental Activities- Internal Service Funds Total Internal Service Equipment Buildings Funds CASH FLOWS FROM OPERATING ACTIVITIES Receipts from Other Funds $ 651,232 $ 567,336 $ 1,218,568 Payments to Suppliers 3,443 (498,366) (494,923) Net Cash Provided by Operating Activities 654,675 68,970 723,645 CASH FLOWS FROM NONCAPITAL FINANCING ACTIVITIES Transfers from Other Funds - 1,000,000 1,000,000 Net Cash Provided (Used) by Noncapital Financing Activities - 1,000,000 1,000,000 CASH FLOWS FROM CAPITAL AND RELATED FINANCING ACTIVITIES Interest Paid - (57,373) (57,373) Acquisition and Construction of Capital Assets (587,342) (6,455,947) (7,043,289) Net cash used for Capital and Related Financing Activities (587,342) (6,513,320) (7,100,662) CASH FLOWS FROM INVESTING ACTIVITIES Proceeds (Purchases) of Investments (221,484) 5,444,350 5,222,866 Payment Received for Notes Receivable 40,000 - 40,000 Interest Received 114,151 - 114,151 Net Cash Provided (Used) by Investing Activities (67,333) 5,444,350 5,377,017 Net Change in Cash and Cash Equivalents - - - Cash and Cash Equivalents, January I - - - Cash and Cash Equivalents, December 31 $ - $ - $ - Reconciliation of Operating Income to Net Cash Provided (Used) by Operating Activities: Operating Income $ 245,560 $ 25,960 $ 271,520 Adjustments to Reconcile Operating Income to Net Cash Provided (Used) by Operating Activities: Depreciation Expense 426,872 413,671 840,543 Other Nonoperating Revenue (Expense) (21,059) 127,705 106,646 (Increase) Decrease in Assets: Interest Receivable (141) - (141) Increase (Decrease) in Liabilities: Accounts and Contracts Payable 3,443 (498,366) (494,923) Total Adjustments 409,115 43,010 452,125 Net Cash Provided by Operating Activities $ 654,675 $ 68,970 $ 723,645 Noncash Investing, Capital and Financing Activities: Contributions of Capital Assets from the Municipality and Developers $ - $ 11,009 $ 11,009 Change in Fair Market Value ofInvestments $ 35,643 $ 50,802 $ 86,445 84 CITY OF SHAKO PEE Scott County, Minnesota Table 1 GENERAL FUND EXPENDITURES BY FUNCTION Years 1994 Through 2003 Fiscal General Public Public Period Government Safety Works Recreation Miscellaneous Total 1994 $ 1,291,772 $ 2,389,753 $ 1,017,678 $ 641,707 $ 29,150 $ 5,370,060 1995 1,451,119 2,050,871 1,123,556 610,584 33,780 5,269,910 1996 1,401,633 2,207,346 1,198,715 282,599 20,209 5,110,502 1997 1,502,375 2,394,648 1,222,062 315,551 90,936 5,525,572 1998 1,605,783 2,396,551 1,549,421 390,557 413,064 6,355,376 1999 2,039,286 2,884,155 1,436,401 458,417 109,182 6,927,441 2000 2,218,058 3,318,628 1,505,776 621,306 86,805 7,750,573 2001 2,325,091 3,706,838 1,625,264 664,340 103,681 8,425,214 2002 2,621,616 4,421,028 1,847,808 622,099 109,455 9,622,006 2003 2,450,385 4,736,516 1,650,664 678,552 317,167 9,833,284 Note: Recreation activities and Pool removed from General Fund in 1996. 85 CITY OF SHAKOPEE Scott County, Minnesota Table 2 GENERAL FUND REVENUES BY SOURCE Years 1994 Through 2003 Licenses Inter- Charges Fines Fiscal And Governmental For and Miscellaneous Total Period Taxes Permits Revenues Services Forfeits Revenue Revenues 1994 $ 2,951,832 $ 410,992 $ 831,073 $ 781,002 $ 64,914 $ 199,290 $ 5,239,103 1995 2,950,583 589,104 779,276 935,196 80,083 323,187 5,657,429 1996 2,873,265 711,190 876,219 1,075,570 95,865 318,052 5,950,161 1997 3,093,665 746,705 955,070 1,045,053 84,708 438,044 6,363,245 1998 3,102,353 1,182,851 1,368,529 1,294,739 99,140 413,991 7,461,603 1999 3,318,114 1,875,506 859,684 1,913,702 148,835 335,088 8,450,929 2000 3,399,045 2,023,037 872,607 1,957,569 172,017 678,652 9,102,927 2001 3,863,980 2,000,133 981,799 1,805,944 230,085 316,359 9,198,300 2002 5,873,826 2,313,544 1,065,291 1,243,535 253,348 296,935 11,046,479 2003 6,987,870 3,227,264 535,329 1,491,614 239,588 271,657 12,753,322 Note: Recreation activities and Pool removed from General Fund in 1996. 86 CITY OF SHAKO PEE Scott County, Minnesota Table 3 PROPERTY TAX LEVIES AND COLLECTIONS Last Ten Fiscal Years Ratio of Accumulated Percentage Delinquent Collections Percentage Collections of Total Accumulated Taxes to Year Tax of Current of Levy of Prior Total Collections Delinquent Current Collected Levy Years Taxes Collected Years Taxes Collections to Tax Levy Taxes Years Taxes 1994 $ 2,832,541 $ 2,753,570 97% $ 28,107 $ 2,781,677 98% $ 65,080 2.30% 1995 2,907,635 2,889,244 99% 21,328 2,910,572 100% 62,188 2.14% 1996 2,887,736 2,863,677 99% 14,215 2,877,892 100% 88,834 3.08% 1997 3,578,560 3,598,147 101% 46,416 3,644,563 102% 71,033 1.98% 1998 3,263,583 3,230,184 99% 22,665 3,252,849 100% 78,834 2.42% 1999 3,819,736 3,757,750 98% 25,186 3,782,936 99% 65,389 1.71% 2000 3,853,808 3,738,963 97% 24,342 3,763,305 98% 88,656 2.30% 2001 4,477,969 4,335,602 97% 62,905 4,398,507 98% 61,661 1.38% 2002 6,645,713 6,484,920 98% 41,342 6,526,262 98% 70,622 1.06% 2003 7,889,018 7,191,567 91% 47,055 7,238,622 92% 79,710 1.01% Source: Scott County Auditor Notes: The above data does not include tax increment districts but does include EDA and City. In 2003, the State of Minnesota cancelled $560,263 in aid payments to the City of Shakopee that were part ofthe tax levy. 87 CITY OF SHAKOPEE Scott County, Minnesota Table 4 TAX CAPACITY AND ESTlMATED MARKET VALUE OF ALL TAXABLE PROPERTY December 31, 2003 1993/94 1994/95 1995/96 1996/97 1997/98 1998/99 1999/00 2000/0 I 2001/02 2002/03 Population 13,041 13,752 14,952 15,200 16,400 17,200 20,568 21,500 25,300 26,830 Real Property: Tax Capacity $ 13,356,769 $ 14,785,689 $ 15,829,452 $ 16,600,952 $ 16,304,620 $ 17,081,507 $ 20,132,479 $ 25,662,726 $ 21,733,591 $ 24,933,020 Area Wide Allocation (Net) (990,150) (1,697,226) (1,900,202) (1,969,054) (1,668,299) (1,452,992) (1,718,112) (1,997,080) (1,543,453) (2,035,749) 12,366,619 13,088,463 13,929,250 14,631,898 14,636,321 15,628,515 18,414,367 23,665,646 20,190,138 22,897,271 Personal Property: Tax Capacity 212,270 238,130 260,873 270,618 243,636 255,877 255,785 260,826 169,164 180,289 Total Real and Personal Property: Tax Capacity $ 13,569,039 $ 15,023,819 $ 16,090,325 $ 16,871,570 $ 16,548,256 $ 17,337,384 $ 20,388,264 $ 25,923,552 $ 21,902,755 $ 25,113,309 Estimated MaIket Value $536,255,100 $592,857,300 $642,522,700 $ 695,306,365 $ 776,534,400 $897,901,119 $ 1,087,145,000 $ 1,369,102,400 $ 1,743,136,300 $ 2,062,115,200 Ratio ofTotal Tax Capacity Value to Total Value 2.53% 2.53% 2.50% 2.43% 2.13% 1.93% 1.88% 1.89% 1.26% 1.22% Per Capita Valuations: Tax Capacity $ 1,040 S 1,092 $ 1,076 $ 1,110 S 1,009 $ 1,008 $ 991 S 1,206 $ 866 $ 936 Market Value 41,121 43,.111 42,972 45,744 47,350 52,204 52,856 63,679 68,899 76,859 Tax Increment Captured Tax Capacity 1,919,057 1,730,527 1,511,139 1,514,980 1,332,062 1,231,584 1,211,989 1,80 1,828 975,773 497,860 Notes: Property values include net amount allocated pursuant to the "fiscal disparities" Laws 1971, Extra Session, Chapter 24, from area wide "pool." Population figures per Metropolitan Council estimates except for 2000 which is the official census figure. 1996,1997,2001- 2003 are the City's estimates. Tax capacity values include captured tax capacity values under tax increment districts per Scott County Auditor. 88 CITY OF SHAKOPEE Scott County, Minnesota Table 5 TAX RATES AND TAX LEVIES DIRECT AND OVERLAPPING GOVERNMENTS Years 1993 Through 2003 TAX RATES Tax School District Special Year City 720 191 County Districts 1993/94 0.27104 0.65540 0.74468 0.48475 0.05327 1994/95 0.25245 0.71179 0.80708 0.50217 0.06101 1995/96 0.22458 0.67174 0.75177 0.46060 0.06380 1996/97 0.23098 0.64174 0.73684 0.41683 0.04680 1997/98 0.21127 0.73306 0.65803 0.40679 0.06329 1998/99 0.23358 0.58686 0.66096 0.39282 0.03192 1999/00 0.20132 0.50203 0.53546 0.36182 0.04324 2000/01 0.18199 0.42982 0.45095 0.31729 0.03034 2001/02 0.33976 0.26080 0.24120 0.39517 0.04976 2002/03 0.33939 0.24168 0.21226 0.38554 0.05685 TAX LEVIES 1993/94 $ 2,805,925 $ 5,716,094 $ 451,526 $ 4,521,685 $ 515,738 1994/95 2,805,925 6,830,750 436,181 5,090,536 618,281 1995/96 2,785,342 6,903,571 452,440 5,175,459 716,879 1996/97 3,598,560 7,359,641 441,888 5,030,291 548,003 1997/98 2,911 ,313 8,589,216 371,315 4,980,071 773,707 1998/99 3,819,736 8,527,570 357,605 5,344,391 537,711 1999/00 3,853,808 7,508,229 309,605 5,679,041 648,422 2000/01 4,430,959 6,484,070 273,306 6,448,609 758,010 2001/02 6,625,413 4,878,510 182,384 6,432,203 816,530 2002/03 7,869,018 6,848,399 257,584 7,367,688 1,092,824 Source: Scott County Auditor & The Minnesota Homestead Property Tax review Notes: Shakopee EDA tax levy and tax rate included in special districts. Tax rate is per $1,000 oftax capacity. 89 CITY OF SHAKOPEE Scott County, Minnesota Table 6 SPECIAL ASSESSMENT BILLINGS AND COLLECTIONS Years 1994 Through 2003 Ratio Total Current Percentage of Total Outstanding Special Current of Current Delinquent Collections Current and Year Assessments Assessments Assessments Assessments Total To Current Delinquent Collected Billings Collected Collected Collected Collected Amount Due Assessments 1994 $ 545,044 $ 470,839 86% $ 58,486 $ 529,325 97% $ 665,390 1995 506,287 480,418 95% 93,336 573,754 113% 574,660 1996 332,942 304,232 91% 11,438 315,670 95% 582,511 1997 576,973 552,826 96% 10,762 563,588 98% 649,839 1998 833,997 766,187 92% 8,449 774,636 93% 350,225 1999 1,132,179 1,013,835 90% 21,825 1,035,660 91% 331,482 2000 1,123,379 1,007,580 90% 11,367 1,018,947 91% 443,190 2001 982,955 906,429 92% 83,662 990,091 101% 434,763 2002 578,223 553,481 96% 61,580 615,061 106% 373,154 2003 1,290,139 1,223,986 95% 21,726 1,245,712 97% 357,428 Source: Scott County Auditor 90 CITY OF SHAKO PEE Scott County, Minnesota Table 7 RATIO OF NET GENERAL BONDED DEBT TO ASSESSED VALUE AND NET BONDED DEBT PER CAPITA Years 1994 Through 2003 Less Amount Ratio of Gross In Funds Net Net General Net Bonded Fiscal Tax Capacity Bonded For Debt Bonded Bonded Debt To Debt Per Year Population (1) Value (2) Debt (3) Service Debt Tax Capacity Capita 1994 13,041 $ 13,569,039 $ 17,325,000 $ 9,204,653 $ 8,120,347 59.8% $ 623 1995 13,752 15,023,819 14,540,000 4,921,309 9,618,691 64.0% 699 1996 14,952 16,090,325 15,380,000 5,269,819 10,110,181 62.8% 676 1997 15,200 17,142,188 17,380,000 5,611,176 11,768,824 68.7% 774 1998 16,400 16,548,256 22,000,000 8,608,467 13,391,533 80.9% 817 1999 17,200 17,337,384 19,990,000 10,082,459 9,907,541 57.1% 576 2000 20,568 20,388,264 18,355,000 9,321,002 9,033,998 44.3% 439 2001 21,500 25,923,552 15,090,000 8,477,999 6,612,001 25.5% 308 2002 25,300 21,902,755 17,010,000 7,653,349 9,356,651 42.7% 370 2003 26,830 24,933,020 15,505,000 6,369,303 9,135,697 36.6% 341 Sources: (1) Population figures per Metropolitan Council estimates except for 2000 which is the official census figure. 1996, 1997,2001 - 2003 are the City's estimates. (2) Scott County Auditor Note: (3) Includes G. O. Tax Increment Bonds, excludes Revenue Bonds. 91 CITY OF SHAKOPEE Scott County, Minnesota Table 8 COMPUTATION OF DIRECT AND OVERLAPPING DEBT December 31, 2003 Percentage Amount Applicable Applicable G.O. to City of to City of Debt Shakopee Shakopee City of Shakopee $ 15,505,000 100.0% $ 15,505,000 School District #720 53,925,000 86.0% 46,381,370 School District #191 68,415,000 1.4% 957,810 Scott County 51,120,000 27.7% 14,160,240 Metropolitan Council 198,050,000 1.0% 1,980,500 Scott County HRA 1,590,000 27.7% 440,430 Total Direct and Overlapping Debt $ 388,605,000 $ 79,425,350 Source: Scott County Auditor Dakota County Auditor State Department of Revenue Note: Excludes G.O. Revenue and Revenue Bonds. 92 CITY OF SHAKOPEE Scott County, Minnesota Table 9 RATION OF ANNUAL DEBT SERVICE EXPENDITURES FOR GENERAL BONDED DEBT TO TOTAL GENERAL FUND EXPENDITURES December 31, 2003 Ratio of Debt Service Total General To Total Fiscal Debt Fund General Fund Period Principal Interest Service Expenditures Expenditures 1994 $ 2,860,000 $ 1,020,288 $ 3,880,288 $ 5,370,060 72.26% 1995 5,965,000 747,638 6,712,638 5,269,910 127.38% 1996 1,715,000 625,182 2,340,182 5,110,502 45.79% 1997 1,835,000 658,005 2,493,005 5,525,572 45.12% 1998 2,250,000 800,853 3,050,853 6,355,376 48.00% 1999 2,010,000 953,290 2,963,290 6,927,441 42.78% 2000 4,195,000 832,209 5,027,209 7,750,573 64.86% 2001 3,265,000 761,218 4,026,218 8,425,214 47.79% 2002 3,015,000 658,128 3,673,128 9,622,006 38.17% 2003 3,720,000 717,098 4,437,098 9,833,284 45.12% Note: Revenue Debt is Excluded. 93 CITY OF SHAKOPEE Scott County, Minnesota Table 10 SCHEDULE OF REVENUE BOND COVERAGE Years 1994 Through 2003 Net Revenue Debt Service Requirements Fiscal Gross Available For Period Revenue Expenses Debt Service Principal Interest Total Coverage 1994 $ 3,042,057 $ 1,290,269 $ 1,751,788 $ - $ 211,713 $ 211,713 8.27 1995 3,278,875 1,302,037 1,976,838 100,000 226,163 326,163 6.06 1996 3,943,476 1,616,121 2,327,355 100,000 261,388 361,388 6.44 1997 4,107,281 1,805,153 2,302,128 180,000 268,903 448,903 5.13 1998 4,923,585 1,880,555 3,043,030 200,000 261,217 461,217 6.60 1999 5,875,182 2,250,162 3,625,020 200,000 261,217 461,217 7.86 2000 8,122,871 4,321,762 3,801,109 230,000 620,116 850,116 4.47 2001 8,683,026 4,652,140 4,030,886 235,000 999,172 1,234,172 3.27 2002 8,660,987 3,987,630 4,673,357 340,000 1,202,462 1,542,462 3.03 2003 10,007,251 4,721,961 5,285,290 455,000 1,196,176 1,651,176 3.20 Notes: The information for 1994 - .1995 is for Electric and Water Funds. The information for 1996 on is for Electric,W ater and Storm Drainage Funds. Expense information excludes depreciation. 94 CITY OF SHAKOPEE Scott County, Minnesota Table 11 COMPUTATION OF LEGAL DEBT MARGIN December 31,2003 Market Value (Taxable) $ 2,062,115,200 Debt Limit 2% of Market Value (Note A) 41,242,304 Amount of Debt Applicable to Debt Limit: Total Bonded Debt $ 40,659,418 Less (Note B): G.O. Special Assessment Bonds 13,060,000 Revenue Bonds 25,215,000 Available in Debt Service Funds 6,369,303 Total Debt Applicable to Debt Limit (3,984,885) (3,984,885) Legal Debt Margin $ 45,227,189 NOTE (A): M.S.A. Section 475.53 (Limit on Net Debt) Subdivision 1. Generally, except of otherwise provided in Sections 475.51 to 475.75, no municipality, except a school district or a city of the first class, shall incur or be subject to a net debt in excess of two percent of the market value of taxable property in the municipality." NOTE (B): M.S.A. Section 475.51 Definitions: Subdivision 4. 'Net Debt' means the amount remaining after deduction from its gross debt the aggregate of the principal of the following: (1) Obligations issued for improvements which are payable wholly or partly from the proceeds of special assessments levied upon property specially benefited thereby, including those which are general obligations of the municipality issuing them, if the municipality is entitled to reimbursement. in whole or in part from the proceeds of the special assessments. (2) Warrants or orders having no definite or fixed maturity. (3) Obligations payable wholly from the income of revenue-producing conveniences. (4) Obligations issued to create or maintain a permanent improvement revolving fund. (5) Obligation issued for the acquisition, and betterment of public waterworks systems, and public lighting, heating or power systems and on any combination thereof or for any other public convenience from which a revenue is or may be derived. (6) Amount of all money and the face value of all securities held as a sinking fund for the extinguishment of obligations other than those deductible under this subdivision 95 CITY OF SHAKO PEE Scott County, Minnesota Table 12 DEMOGRAPHIC STATISTICS Years 1994 Through 2003 Fiscal District School Unemployment Year Population (1) Enrollment (2) Rate (3) 1994 13,041 2,992 3.4% 1995 13,752 3,060 2.3% 1996 14,952 3,352 3.1% 1997 15,200 3,296 2.5% 1998 16,400 3,528 2.0% 1999 17,200 3,723 1.8% 2000 20,568 3,900 2.6% 2001 21,500 3,892 4.0% 2002 25,300 4,487 4.0% 2003 26,830 4,790 4.3% Sources: (1) Population figures per Metropolitan Council estimates except for 2000 which is the official census figure. 1996, 1997,2001 - 2003 are the City's estimates. (2) School District # 720 (3) State Department of Jobs and Training, Scott County year-end rate 96 CITY OF SHAKOPEE Scott County, Minnesota Table 13 PROPERTY VALUE AND CONSTRUCTION Commercial Residential Construction (1) Construction (1) Property Value (2) Fiscal Number Value Number Value Commercial Residential Year of Permits (000) of Permits (000) (000) (000) 1994 239 14,661 389 23,056 175,925 313,365 1995 195 29,184 412 26,006 194,511 380,514 1996 161 20,626 533 40,512 209,944 406,689 1997 100 52,299 548 39,121 225,815 453,855 1998 142 58,084 677 57,814 240,926 520,973 1999 141 94,884 916 121,255 288,809 599,408 2000 147 702,624 1,322 115,628 360,183 719,271 2001 146 35,707 1,191 123,252 436,256 925,024 2002 215 58,531 1,095 90,942 549,534 1,185,015 2003 164 37,624 1,580 154,010 593,367 1,459,625 Sources: City Building Inspector Scott County Assessor Note: Bank Deposits are Unavailable 97 CITY OF SHAKOPEE Scott County, Minnesota Table 14 TEN PRINCIPAL TAXPAYERS IN THE CITY OF SHAKOPEE December 31,2003 Percentage 2002/03 Of Total Tax Cap. Tax Cap. Taxpayer Type of Business Value Value ADC Telecommunications Electronics $ 740,108 2.97% Seagate Manufacturing/Research 739,250 2.96% OIRE Property Management 411,328 1.65% Excel Energy Electrical Generation 372,190 1.49% Rahr Malting Grain Processing 316,160 1.27% KMart Warehouse WarehouselDistribution Center 285,404 1.14% Principal Mutual Mortgage Financial 266,918 1.07% 1000 Valley Drive Warehouse 261250 1.05% Valley Fair Amusement Park 256,032 1.03% First Industrial LP Warehouse 178,206 0.71% Continental 95 Retail 176,100 0.71% $ 4,002,946 16.05% Source: Scott County Assessor 98 CITY OF SHAKOPEE Scott County, Minnesota Table 15 INSURANCE COVERAGE December 31,2003 Real and Personal Property $91,100,000 Comprehensive General Liability and 1,000,000 Public Officials and Employees Liability (Per Occurrence) Comprehensive Automobile Coverage 1,000,000 Bodily Injury and Property Damage (Combined Single Limit) Boiler and Machinery (Per Occurrence) 5,000,000 Employee Faithful Performance Blanket Bond 50,000 Lawyers Professional Liability (Annual Aggregate) 1,000,000 W orkrnen's Compensation Statutory 99 CITY OF SHAKOPEE Scott County, Minnesota Table 16 PRINCIPAL OFFICIALS AND SURETY BONDS December 31,2003 Name Position Mayor and Council William P. Mars Mayor Joseph Helkamp Councilmember Matthew Lehman Councilmember Cletus J. Link Councilmember Terry Joos Councilrnember Administration Mark H. McNeill City Adrninistrator/EDA Director R. Michael Leek Community Development Director Gregg M. Voxland Finance Director/Treasurer Bruce A. Loney Public Works Director Judith S. Cox City Clerk Daniel T. Hughes Chief of Police Terry Stang Fire Chief Louis J. Van Hout Utilities Manager Notes: The City of Shako pee has a $50,000 Surety Bond on all City employees. There is a $100,000 Surety Bond on the Treasurer and the Clerk. 100 CITY OF SHAKOPEE Scott County, Minnesota Table 17 MISCELLANEOUS STATISTICAL DATA December 31, 2003 Date of Incorporation 1870 Form of Government Council/Mayor Fiscal Year Begins January 1st. Area of City 33 Square Miles Miles of Streets and Alleys: Trunk Highways 8 County Roads 36 Other 138 Fire Protection: Number of Stations 2 Number of Employees 40 Police Protection: Number of Stations 1 Number of Employees 33 Recreation: Park Area 437 Number of Parks and Playgrounds 25 Municipal Swimming Pool 1 Ice Arena 1 Employees as of Year End: Full-time 102 Part-time/ Temporary 76 Elections: Registered Voters - Last General Election 12,806 Number of Votes Cast 9,929 Percentage of Registered Voters Voting 77.5% 101 I I I I I CITY OF SHAKO PEE Scott County, Minnesota I Memorandum on Financial Analysis Information, Accounting Policies and Procedures and Internal Control For the Year Ended December 31, 2003 I I I I I I I I I I I I I I KDV I I KERN. DEWENTER.VIERE I May 11, 2004 I I Honorable Mayor and City Council City of Shakopee Shakopee, Minnesota I The accompanying memorandum includes suggestions for improvement of accounting I procedures and internal accounting control measures that came to our attention as a result of our audit of the financial statements of the City of Shakopee, Minnesota, for the year ended December 31, 2003. The matters discussed herein were considered by us during our audit and I they do not modify the opinion expressed in our independent auditors' report dated May 11, 2004, on such statements. In planning and performing our audit of the financial statements of the City of Shako pee, I Minnesota, for the year ended December 31, 2003, we considered its internal control over financial reporting in order to determine our auditing procedures for the purpose of expressing our opinion on the financial statements and not to provide assurance on the internal control over I financial reporting. However, we noted a certain matter involving internal control and its operation that we consider to be a reportable condition under standards established by the American Institute of Certified Public Accountants. Reportable conditions involve matters I coming to our attention relating to significant deficiencies in the design or operation ofthe internal control that, in our judgment, could adversely affect the City's ability to record, process, summarize and report on financial data consistent with the assertions of management in the financial statements. The following pages distinguish between reportable conditions, financial I analysis and management suggestions. A material weakness is a reportable condition in which the design or operation of one or more of I the internal control components do not reduce to relatively low level the risk that errors or irregularities in amounts that would be material in relation to the general purpose financial statements being audited may occur and not be detected within a timely period by employees in I the normal course of performing their assigned functions. Our consideration of internal controls would not necessarily disclose all matters in internal I controls that might be reportable conditions and, accordingly, would not necessarily disclose all reportable conditions that are considered to be material weaknesses as defined above. However, we do not believe the reportable condition described is a material weakness. I I I 1 I KDV I KERN. DEWENTER'YIERE I I This report is intended solely for the information and use ofthe City Council, management and others within the City and is not intended to be, and should not be used by anyone other than these specified parties. We would like to express our appreciation for cooperation extended to us I by the employees of the City during our audit. I ~, 'D,eUJ4~, V~ I ;J.-I-P. I KERN, DEWENTER, VIERE, LTD. Minneapolis, Minnesota I I I I I I I I I I I I 2 I I I I CITY OF SHAKO PEE \ Scott County, Minnesota I FINANCIAL ANALYSIS December 31,2003 I GENERAL FUND I The City of Shakopee has consistently experienced increased revenues over the last five years. General Fund revenues increased in 2003 by 25.5% from $ 11,046,479 to $ 12,753,322. The following graphs illustrate the allocation of the revenues for 2003 and 2002. Increases in ~ I revenue for 2003 were a result of tax levies, licenses and permits and charges for services. I Intergovernmental revenue declined by over $ 500,000 due to state aid cuts. I I 2003 General Fund Revenues I I Miscellaneous I Charges for Services 2% 12% Fines and Forfeits I 2% I Licenses and Permits Taxes I 25% 55% I Intergovernmental I 4% I I I 2002 General Fund Revenues Miscellaneous I Charges for Services 3% 11% Fines and Forfeits 2% I Taxes 53% I Licenses and Permits 21% I Intergovernmental 10% I I 3 I I I I CITY OF SHAKOPEE Scott County, Minnesota !I FINANCIAL ANALYSIS December 31,2003 II GENERAL FUND ! I Total General Fund expenditures also increased in 2003 from $ 9,622,006 to $ 9,833,284, or 2.2%. This is the third year of increased expenditures, due to growth in the City. The following I is an illustrated expenditure breakdown for 2003 and 2002. Significant expenditure increases during 2003 were concentrated in the public safety, recreation and miscellaneous areas. General government expenditures declined slightly in 2003. I l I 2003 General Fund Expenditures I Miscellaneous 3% General Government 25% I Public Works 17% I I Pu b lic Sa fely 48% I I 2002 General Fund Expenditures Miscellaneous Recreation 1% I 6% General Government 27% I I Public Safely I 47% I I 4 - - I I I I CITY OF SHAKO PEE I Scott County, Minnesota I I FINANCIAL ANALYSIS December 31,2003 I GENERAL FUND I I The general fund operations showed net income of $ 2,920,038 prior to transfers out, compared I to net income of$ 1,424,473 in 2002. The Fund Balance increased $ 2,110,739 in 2002 after net transfers out totaling $ 809,299. Transfer out for 2003 were used to fund various City projects, I including the building internal service fund. Fund balance totaled $ 5,644,819 at December 31, 2003 and $ 5,565,816 is undesignated. The bar chart below highlights the General Fund total I revenues, expenditures and fund balance the last five years. I General Fund I I I $14,000,000 I $12,000,000 I I I $10,000,000 - I $8,000,000 . I $6,000,000 - I $4,000,000 - $2,000,000 - I $0 1999 2000 2001 2002 2003 iii Revenues $8,450,929 $9,102,927 $9,198,300 $11,046,479 $12,753,322 I o Expenditures $6,927,441 $7,750,573 $8,425,214 $9,622,006 $9,833,284 . Fund Balance $4,700,338 $4,873,116 $3,144,560 $3,534,080 $5,644,819 I I I I I I 5 I II I I I CITY OF SHAKO PEE I Scott County, Minnesota I FINANCIAL ANALYSIS I December 31, 2003 I I DEBT SERVICE I I The following charts illustrate debt service requirements through 2030, and bonded debt for the I last five years. I I Debt Service Schedule l I (Including Principal and Interest) II I $18,000,000 /' F I. $16,000,000 _/' - I - \ I. $14,000,000 - $12,000,000 _/' - I $10,000,000 _/' - I I $8,000,000 _/' - I $6,000,000 y - I I :I~=~=~=~=~=a=a-[Ul[l[l[l[l[t[]- - $4,000,000 - I - I $2,000,000 - I -; $0 , I 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020+ I I I . General Obligation Bonds o Tax Increment Bonds o Revenue Bonds I i * Includes maturities for years 2020 through 2030. I [ I [ I I I I I 6 ! I ! I I I CITY OF SHAKOPEE I Scott County, Minnesota I I FINANCIAL ANALYSIS I I December 31, 2003 I I DEBT SERVICE I I I Bonded G.O. Debt I I I I \ I $20,000,000 - I I I I $15,000,000 -- I $10,000,000 - I I $5,000,000 -- I I I I $0 I I I 1999 2000 2001 2002 2003 I I I o Gross Bonded Debt . Net Bonded Debt . Debt Service Fund Balance I I I I I I I I I I I I I \ I I I 7 -- .- .- - - - I I ! I I CITY OF SHAKOPEE Scott County, Minnesota I I FINANCIAL ANALYSIS I December 31, 2003 I I I ENTERPRISE FUNDS I I The City has five enterprise funds, four of which showed positive net earnings for 2003. The I Electric, Water, Sewer and Storm Drainage Funds continue to report the highest operating I income. The Recreation Fund continues to struggle in generating operating income, requiring l I transfcrs from other funds to subsidize operations. The Storm Drainage Fund experienced an I I increase in net income as a result of significant trunk charges. Capital contributions also I increased the equity positions of several funds, due to these amounts being reported as revenues. I The following charts compare the segmcnt information and retained earnings of all the enterprise funds for the last five years. I I Electric Fund I I I $20,000,000 - I I $18,000,000 $16,000,000 - I I $14,000,000 - I I $12,000,000 - I I I I $10,000,000 - I $8,000,000 - I I $6,000,000 - I $4,000,000 - I $2,000,000 - I $0 1999 2000 2001 2002 2003 I o Operating Revenues . Operating Expenses 0 Operating Income 0 Income Before Operating Transfers . Change in Net Assets I I I I I 8 I I CITY OF SHAKOPEE Scott County, Minnesota I FINANCIAL ANALYSIS December 31,2003 I ENTERPRISE FUNDS I Water Fund I $3,500,000 $3,000,000 I $2,500,000 - I $2,000,000 $1,500,000 I $1,000,000 $500,000 II $0 - I 1999 2000 2001 2002 2003 I o Operating Revenues . Operating Expenses 0 Operating Income 0 Income Before Operating Transfers . Change in Net Assets I Sewer Fund $4,500,000 I $4,000,000 $3,500,000 I $2,500,000 II $2,000,000 I $1,000,000 $500,000 I $0 I 1999 2000 2001 2002 2003 I o Operating Revenues . Operating Expenses o Operating Income o Change in Net Assets I I 9 ~ ---- I I I I CITY OF SHAKO PEE I Scott County, Minnesota I ,I FINANCIAL ANALYSIS December 31,2003 I I ENTERPRISE FUNDS I I Storm Drainage Fund I , I $6,000,000 I $5,000,000 - I I I $4,000,000 - , r; I , I $3,000,000 I $2,000,000 - I $1,000,000 - I I $0 - I 1999 2000 2001 2002 2003 I o Service Charges . Operating Expenses o Operating Income o Change in Net Assets I I I Recreation Fund I $2,000,000 - I $1,500,000 I I $1,000,000 I $500,000 I I I I ($500,000) I ($1,000,000) I I 1999 2000 2001 2002 2003 o Operating Revenues . Operating Expenses 0 Operating (Loss) 0 (Loss) Before Operating Transfers . Change in Net Assets I I 10 -~--~"--_._----'-'------,- -- I I CITY OF SHAKOPEE Scott County, Minnesota I FINANCIAL ANALYSIS December 31,2003 I INTERNAL SERVICE FUNDS I The Equipment Fund was started in 1995 to fund City equipment purchases. The fund has shown increasing growth and income each year as illustrated by the following chart. I Equipment Fund $700,000 I $600,000 - $500,000 - I $400,000 - II $300,000 - $200,000 - , "i I $100,000 - j $0 - 1999 2000 2001 2002 2003 II o Rental Charges . Operating Expenses/Depreciation DOperating Income DChange in Net Assets The Building Fund was established in 1999 to fund City building improvements. The following I chart illustrates fund activity tor 1999 through 2003, the fund's first five years of operation. In 2003 and 2002, transfers in totaling $ 1,000,000 and $ 1,000,000 were made from the general fund respectively. I Building Fund 4,500,000 i 4,000,000 3,500,000 I 3,000,000 2,500,000 I 2,000,000 1,500,000 1,000,000 I 500,000 0 I 1999 2000 2001 2002 2003 -500,000 10 Equipment. Rental Charges Q Operating ExpenseslDeprecialion 0 Operating Income. Change in Net Assets I I 11 .---~- ---.----..--.----..-.---.--- --.- -._.- - .._- ---- -----'_.,-~~ --------------------'--- ---'-,---- 1\ I CITY OF SHAKOPEE Scott County, Minnesota I FINANCIAL ANALYSIS December 31, 2003 I INTERNAL SERVICE FUNDS I Tax Capacity and Certified Levy I I I I I I I T ax Capacity Rate I 40.000% 33.976% 33.93.9~ 35.000% - .----- I 30.000% - I, 25.000% 23.358% -- - - 20.132% 20.000% - 18c199% - - I 15.000% I-- - 10.000% I----- .- I 5.000% . I---- I---- 0.000% I 1999 2000 2001 2002 2003 I 12 ------ ---- ----,-.--'- --- - ,-.-- ----------------,----------------.------- - -.'------------- -"-'-'-.-"-- - ----.-'~'------~---'- -'-,--------------- --~--~ ,--- I I I I CITY OF SHAKOPEE I Scott County, Minnesota I FINANCIAL ANALYSIS December 31, 2003 I INTERNAL SERVICE FUNDS I General Fund Revenues/Expenditures Per I Household I $1,600 $1,400 I $1,200 $1,000 $800 I $600 $400 I $200 $0 1999 2000 2001 2002 2003 I I 0 Revenues III Expenditures I * Denoted the number of households serviced for the year. I Productivity Measures ; 1999 2000 2001 2002 2003 Population 17,200 20,568 21,500 22,400 26,830 Number of Households 6,400 7,805 7,940 8,863 8,900 I Number of Full Time Employees I (Excluding Enterprise Funds) 79 89 87 93 102 Population per Employee 218 231 256 237 263 Households per Employee 81 88 91 85 87 I I I ! I I I 13 ~--._~ -- ---- -~ ----- -~----.-~,,--.---~~-.------- - - --"-~-'- ._--~_. ------ - -- '.-- ~-_. -- ~ -- I I I I I CITY OF SHAKO PEE I Scott County, Minnesota I I FINANCIAL ANALYSIS I December 31,2003 I I INTERNAL SERVICE FUNDS I I National Bond Ratings I I I [ 25% I 20% I 20% I ~ ~;. 17% I ;'~ 15% I 15% <<I,. .;0 13% I .-"-''',,., I 11% 10% I I 7% 6% I 5% 3% 3% I I 1% 0% ,--,. " ."~- I Aaa Aal Aa2 Aa3 AI' A2 A3 Baal Baa2 Baa3 Below I ' - Denotes City of Shakopcc's Rating I I I The City's bond rating was raised to Aa3 in April, 2004. I I I, I I I 14 I CITY OF SHAKO PEE I Scott County, Minnesota REPORTABLE CONDITIONS December 31, 2003 I During our audit we noted a condition which is considered to be "reportable condition" as I defined by standards established by the American Institute of Certified Public Accountants. Reportable conditions involve matters coming to our attention relating to significant deficiencies in the design or operation ofthe internal control over financial reporting that, in our judgment, I: could adversely affect the City's ability to record, process, summarize and report financial data consistent with the assertions of the Council in the financial statements. The reportable condition follows. I LACK OF SEGREGATION OF ACCOUNTING DUTIES I During the year ended December 31,2003, the City had a lack of segregation of accounting duties due to a limited number of office employees. Although this meets the definition of a "reportable condition," it may not be practical to correct since the costs of obtaining desirable I segregation of accounting duties may exceed benefits that could be derived. I I 'I I I I I I 1\ t _" I I 15 I CITY OF SHAKOPEE I Scott County, Minnesota SUMMARY December 31,2003 I Comments and recommendations contained in this letter are not directives, but.instead are I intended to provide a basis for discussion and further thought. We thank you for providing us with the privilege to work with you. I -- I " I' I I I I I I I I I ~ I "-",,,' I I 16 . .' TABLE 20 PUBLIC SERVICE ENTERPRISES ANALYSIS OF CULTURE AND RECREATION ENTERPRISE OPERATIONS FOR THE YEAR ENDED DECEMBER 31,2002 DEBT SERVICE OPERATING NONOPERATING Transfers NET Federal Slale To/(From) Capilal Interest Principal Name of City Pop. Revenue Expense Income Revenue Expense INCOME Taxes Grants Granls Other Funds Outlay Borrowing Paymeuts Payments ALBANY 1,859 GOLF 494,392 530,223 (35,831) - - (35,831) - - - - 31,228 -- - - ANOKA 18,121 GOLF COURSE 1,004,768 1,2/4,63/ (209,863) 22,288 10,088 (197,663) - - - - 333,870 --- -- - APPLE VALLEY 47,761 GOLF COURSE 800,635 798,731 1,904 425,626 - 427,530 -- - - - 21,216 - - -- SPORTS ARENA 526,495 583,484 (56,989) 91,436 76,325 (41,878) - - - - 10,480 - 74,662 60,000 AURORA 1,819 CINA CENTER 58,470 48,592 9,878 - - 9,878 - - - 7,000 -. - - - BAGLEY 1,221 CABLE TV 146,541 190.598 (44,057) 2,394 - (41,663) - - - - 5,611 - - ... >-' BARNESVILLE 2,260 VI tv CABLE TV 279,179 288,986 (9,807) 8,069 30,312 (32,050) - - - 23,526 20,857 - 30,312 - GOLF COURSE 115,891 121,975 (6,084) 2,395 - (3,689) - - - - 2,669 - - - BECKER 3,220 GOLF COURSE 1,219,760 1,396,957 (177,197) 30,647 -- (146,550) - - - - 272,300 - - - BLACKDUCK 727 GOLF COURSE 122,676 98,824 23,852 54 13,410 10,496 - - - - - --- 13,410 11,173 BLOOMING PRAIRIE 1,946 COMMUNITY BUILDING - 3,152 (3,152) - .- (3,152) - - - - - -- - -- BLOOMINGTON 85,400 RECREATIONAL FACILITIES 3,051,125 3,694,080 (642,955) 709,813 127,296 (60,438) 484,050 - 24,387 - 1,611,937 1,835,000 127,296 2,010,000 BOYD 198 CABLE 12,559 18,669 (6,110) 37 - (6,073) - - - - 1,111 - - - BROOKLYN CENTER 29,185 BROWN HERITAGE CENTER 3,480,535 3,639,611 (159,076) 21,976 1,098 (138,198) - - - 100,000 - - 1,098 - [~ !r . TABLE 20 PUBLIC SERVICE ENTERPRISES ANALYSIS OF CULTURE AND RECREATION ENTERPRISE OPERATIONS FOR THE YEAR ENDED DECEMBER 31,2002 DEBT SERVICE OPERATING NONOPERATING Transfers NET Federal State To/(From) Capital Interest Principal Name of City Pop. Revenue Expense Income Revenue Expense INCOME Taxes Grants Grants Other Funds Outlay Borrowing Payments Payments GOLF COURSE 278,664 274,140 4,524 2,605 - 7,129 -- - - - 11,161 - - - BROOKLYN PARK 68,600 RECREATION 2,638,283 3,073,721 (435,438) 241,747 313,143 (506,834) - - - -- 615,600 - 178,408 115,000 BURNSVILLE 60,900 GOLF COURSE 262,658 232,117 30,541 20,495 29,333 21,703 - - - -- 58,084 - 29,333 50,000 ICE ARENA 889,563 869,889 19,674 587 34,277 (14,016) - - - (70,000) 168,249 - 34,277 200,000 CALLAWAY 204 COMMUNITY CENTER [0] - - - -- - - - - - - - - -- - CALUMET 375 CABLE TV [0] 23,980 22,183 1,797 578 - 2,375 - - - .- - - - - CHAMPLIN 22,620 ...... ARENA [25] - - - - - - - - - - - - -- .- Ut v.> CHASKA 18,961 COMMUNITY CENTER 2,065,575 2,619,958 (554,383) 134,267 - (420,116) - - - 97,820 59,766 - - - PAR 30 GOLF COURSE 151,526 179,039 (27,513) 1,404 - (26, I 09) - - - 15,000 11,944 - - - TOWN GOLF COURSE 1,442,826 1,638,880 ( 196,054) 693,443 - 497,389 - - - 1,239,789 -- - - -- CLIMAX 242 GOLF COURSE [22] 67,245 141,388 (74,143) 3,621 1,801 (72,323) - 1,311 - (7,599) - - 1,801 - COLERAINE 1,098 CABLE TV [0] 92,381 88,348 4,033 - - 4,033 - - - - 19,009 - - - GOLF COURSE [25] - - - - - - - - - - -. - - - COON RAPIDS 62,177 GOLF COURSE 1,873,556 1,718,065 155,491 54,301 157,663 52,129 - - - - 367,968 - 132,174 150,000 COTTAGE GROVE 30,984 GOLF COURSE 1.639,994 1,546,306 93,688 10,210 145,804 (41,906) -- - - 312 76,882 - 141,217 165,164 TABLE 20 PUBLIC SERVICE ENTERPRISES ANALYSIS OF CULTURE AND RECREATION ENTERPRISE OPERATIONS FOR THE YEAR ENDED DECEMBER 31,2002 DEBT SERVICE OPERATING NONOPERATING Transfers NET Federal State To/(From) Capital Interest Principal Name or City Pop. Revenue Expense Income Revenue Expense INCOME Taxes Grants Grants Other Fnnds Ontlay Borrowing Payments Payments CROSS LAKE 1,96] CABLE TV 879,498 834,892 44,606 34,165 52,532 26,239 - - - - - -- 52,532 41,530 DARFUR 131 HALL 1,295 2,231 (936) 265 - (671) - - - -- - -- - - DEEPHA VEN 3,881 MARINA 61,171 57,597 3,574 4,103 - 7,677 - - - - - - - -. DULUTH 86,044 CONVENTION CENTER [29] 6,623,554 8,313,401 (1,689,847) 199,772 430,121 (1,920,196) - - 176,680 (777,900) 458,021 -- 423,341 622,944 GOLF COURSE 1,482,071 1,607,610 (]25,539) 8,049 146,896 (264,386) - -- - - 15,763 -- 1I9,319 255,000 SPIRlT MOUNTAIN [29] 3,259,522 3,358,454 (98,932) 21,603 112,297 (189.626) - - - (321,900) 246,368 - 111,175 457,958 EAGAN 64,700 AQUATIC FACILITY 1,098,218 1,023,794 74,424 39,603 100,373 13,654 - - - 67,072 15,921 -- 90,508 - ..... VI CIVIC ARENA 81l,169 745,129 66,040 ]9,544 75,978 9,606 - - - (3,991) 7,611 75,184 50,000 """ -- COMMUNITY CENTER - - - 2,] 75,071 - 2,175,071 1,390,197 - - - 10,579,586 - - -- SLIDING HILL [0] - ]8,888 (18,888) - 251 (19,139) - - - - - - - - EAST BETHEL 11,198 ARENA 182,480 236,220 (53,740) - 12,275 (66,015) - - - (84,439) - --- 12,275 65,000 EDINA 47,570 ARENA 1,218,004 1,306,25 ] (88,247) 36,087 51,037 (103,197) - - - (90,157) 84,238 - 42,873 1,608,400 ART CENTER 470,39] 647,]78 (176,787) 21,723 18,922 (173,986) - -. - (129,070) - - -- - EDINBOROUGH PARK 1,051,460 1,583,094 (531,634) 410,236 49,696 (171,094) - - - (54,343) 6,103 .-. 1,524 19,000 GOLF COURSE 3,427,457 3,169,030 258,427 46,274 409,801 (105,100) - - - - 96,203 .- 206,533 4,702,600 SWIMMING POOL 778,961 547,7]6 231,245 14,311 3]7,656 (72, I 00) - - - - 905,754 - 68,199 545,000 ELBOW LAKE 1,271 T1PSINAH MOUNDS CAMPGRO 145,802 12],729 24,073 681 42 24,712 - - - 500 5,667 - 42 - ELIZABETH 172 COMMUNITY CENTER [0] 5,868 4,995 873 6 -. 879 - - - - - - - - TABLE 20 PUBLIC SERVICE ENTERPRISES ANALYSIS OF CULTURE AND RECREATION ENTERPRISE OPERATIONS FOR THE YEAR ENDED DECEMBER 31,2002 DEBT SERVICE OPERATING NONOPERATING Transfers NET Federal State To/(From) Capital Interest Principal Name of City Pop. Revenue Expense Income Revenue Expense INCOME Taxes Grants Grants Other Fu nds Outlay Borrowing Payments Payments EVELETH 3,800 GOLF COURSE [23] 154,055 187,435 (33,380) - - (33,380) - - - - - -- - - FARMINGTON 14,255 ARENA 207,225 256,294 (49,069) - 54 (49,123) - -- - (30,000) 12,390 - - -- FOREST LAKE 15,093 GOLF 10,984 6,J59 4,825 1,764 - 6,589 - - - - - - - - FOSSTON 1,555 CABLE TV 170,272 165,365 4,907 - - 4,907 - - - - - - - -- GOLDEN VALLEY 20,636 GOLF COURSE 1,643,505 2,032,972 (389,467) 84,121 - (305,346) - - - 85,000 110,667 - - - GRAND MARAIS 1,402 I-' GOLF COURSE 148,585 146,753 418 1,414 VI 1,832 - - - - - 33,829 - 418 5,655 VI GRAND RAPIDS 7,829 GOLF COURSE 491,515 518,654 (27,139) 8,770 5,968 (24,337) - - - 2,500 63,565 -- 5,968 14,846 GRANITE FALLS 3,053 CABLE TV 30,009 7,699 22,310 1,368 - 23,678 - - - - - - - - COMMUNITY CENTER 281,132 600,767 (319,635) 165,094 67,698 (222,239) 125,798 -- - (53,476) - - 66,744 50,000 GREENWOOD 786 MARINA 10,800 6,703 4,097 - - 4,097 - - - - - - - - HAMBURG 540 COMMUNITY HALL [0][25] - - - - - - - - - - - - - - HAMMOND 196 CABLE TV 13,788 14,279 (491) - 464 (955) - - - - - - 464 11,527 HIBBING 16,968 MEMORIAL BLDG CONCESSIO 6,843 3,808 3,035 1,770 - 4,805 - - - - 1,585 - - - TABLE 20 PUBLIC SERVICE ENTERPRISES ANALYSIS OF CULTURE AND RECREATION ENTERPRISE OPERATIONS FOR THE YEAR ENDED DECEMBER 31, 2002 DEBT SERVICE OPERATING NONOPERATING Transfers NET Federal State To/(From) Capital Interest Principal Name of City Pop. Revenue Expense Income Revenue Expense INCOME Taxes Grants Grants Other Fnnds Outlay Borrowing Payments Payments HOKAH 599 SWIMMING POOL [25] - - - -- - - -- - - - - - -- - HOPKINS 17,559 PAVILIONnCEARENA 276,097 314,794 (38,697) 3,183 - (35,514) - - - - 69,072 - - -- SKA IE PARK [*] 17,314 42,030 (24,716) -- 94 (24,810) - - - - - -- - - INVER GROVE HEIGHT 30,708 COMMUNITY CENTER 1,749,097 2,980,844 (1,231,747) 134,451 -. (1,097,296) -- - - (411,825) 57,745 - - - GOLF COURSE 1,604,714 1,545,428 59,286 25,361 23 I ,502 (146,855) - - - - 13,552 - 231,502 245,000 RECREATION [*] 188,924 639,436 (450,512) 555 - (449,957) - - - (447,272) 14,728 - - - JACKSON 3,490 CABLE TV 375,871 364,161 11,710 7,080 - 18,790 - - - 30,000 5,166 - - -- JANESVILLE 2,110 ..... VI GOLF COURSE 221,955 270,571 (48,616) 21,210 33,312 (60,718) 137 - 60,979 0\ - -- - - 33,312 LA CRESCENT 5,027 GOLF COURSE 374,080 502,739 (128,659) - 51,341 (180,000) - - - - 3,674 - 51,341 -- HOCKEY ARENA 100,676 160,932 (60,256) -- 48,550 (108,806) - - - - 8,841 - 38,458 30,000 LAKE CITY 5,153 MARINA 1,356,330 841,849 514,481 160,811 59,040 616,252 - - - 717,726 39,353 - 4,040 23,000 LAKE CRYSTAL 2,479 RECREATION CENTER - 64,714 (64,714) 99,919 102,686 (67,481) - - - - - - 102,686 35,000 LAKEFIELD 1,720 CABLE TV [4] - - - - - - - - - - - - - -- LITTLE FALLS 7,955 GOLF COURSE 406,341 469,656 (63,315) 116,426 - 53,111 - - - 10,579 182,592 - - - LUVERNE 4,631 SWIMMING POOL 198,548 411,966 (213,418) 77,091 - (136,327) - - - (67,118) 18,220 - - - TABLE 20 PUBLIC SERVICE ENTERPRISES ANALYSIS OF CULTURE AND RECREATION ENTERPRISE OPERATIONS FOR THE YEAR ENDED DECEMBER 31,2002 DEBT SERVICE OPERATING NONOPERATING Transfers NET Federal State To/(From) Capital Interest P.-incipal Name of City Pop. Revenue Expense Income Revenue Expense INCOME Taxes Grants Grants Other Fnnds Ontlay Borrowing Payments Payments MADELlA 2,330 GOLF COURSE [22] 183,328 188,445 (5,117) 2,866 2,262 (4,513) - - - - 39,746 - 2,262 50,495 MAPLE GROVE 54,000 COMMUNITY CENTER 1,645,298 2,584,012 (938,714) - - (938,714) - - - (419,900) 61,197 - -. - MAPLEWOOD 35,600 COMMUNITY CENTER 1,857,229 2,189,440 (332,211) 60,068 5,593 (277,736) 54,078 - 4,466 (25,410) 208,440 - 5,409 - MARBLE 684 CABLE TV [0] 70,485 77,097 (6,612) - - (6,612) - - -- - - - - - MINNEAPOLIS 382,700 PARK & RECREATION BOARD [ 10,543,867 10,578,872 (35,005) 456,353 93,737 327,611 - - 28,522 1,292,952 240,308 - - - MINNETONKA 51,440 ...... HEALTH CLUB 662,719 730,134 (67,415) 479 - (66,936) - - 20,978 Vl - - - - - -...J ICE ARENA 677,127 838,987 (16 I ,860) 277 - (161,583) - - - (126,286) 150,539 - -- - MARINA 1,400 24,968 (23,568) 174 - (23,394) - - - (740,000) 740,000 - - -- MOORHEAD 32,572 GOLF COURSE 928,979 1,176,535 (247,556) 132,801 292,980 (407,735) - - - (155,503) 151,293 - 250,622 125,000 SPORTS CENTER 362,875 619,999 (257,124) 861,877 42,302 562,451 - - 850,000 (75,395) 122,975 - 23,280 40,000 MOUNDS VIEW 12,800 GOLF COURSE 597,639 586,935 10,704 16,971 214,454 (186,779) - - - 15,000 36,739 -- 209,643 120,000 NEW BRIGHTON 22,260 DRIVING RANGE 82,986 88,794 (5,808) 5,823 471 (456) - - - - - - - - GOLF COURSE 214,526 327,848 ( 113,322) 57,770 35,032 (90,584) - - - 24,400 - -- 35,019 20,000 NEW HOPE 20,910 GOLF COURSE 360,882 365,696 (4,814) 16,259 35,751 (24,306) - - - 9,756 - - 35,751 20,000 ICE ARENA 581,365 710,039 (128,674) 1,681 -- (126,993) - - - (12,628) - - - - NEW PRAGUE 5,016 GOLF COURSE 1,152,575 1,063,355 89,220 6,050 17,506 77,764 - - - 13,500 68,283 - 15,874 26,1 \I TABLE 20 PUBLIC SERVICE ENTERPRISES ANALYSIS OF CULTURE AND RECREATION ENTERPRISE OPERATIONS FOR THE YEAR ENDED DECEMBER 31,2002 DEBT SERVICE OPERATING NONOPERATING Transfers NET Federal State To/(From) Capital Interest Principal Name of City Pop. Reven.ue Expense Income Revenue Expense INCOME Taxes Grants Grants Other Fnnds Ontlay Borrowing Payments Payments NORTHFfELD 17,846 RESOURCE CENTER 207,878 327,682 (119,804) 62,794 20,636 (77,646) - 50,000 - ( 125,000) 18,627 - 20,636 21,365 NORWOOD YOUNG AM 3,162 SWIMMING POOL 34,080 74,759 (40,679) - - (40,679) - - - (28,897) - - -- - ORONO 7,625 GOLF COURSE 162,879 209,967 (47,088) 14,927 - (32,161) - - - - 29,282 - - - ORTONVILLE 2,081 GOLF COURSE 244,765 226,208 18,557 817 2,144 17,230 - - - 10,000 26,956 - - - P ARKERS PRAIRIE 1,018 EVENT CENTER [*] - 3,021 (3,021) 18,027 - 15,006 - - - - - -- - - PERHAM 2,645 ..... COMMUNITY CENTER [28] 668,891 764,399 (95,508) 45,271 3,886 (54,123) - - - (35,000) 40,597 3,886 67,216 Vl - 00 GOLF COURSE (14J[28J 469,915 550,884 (80,969) 37,615 65,056 (108,410) - - - - 72,863 - 65,056 25,000 PfERZ 1,310 GOLF CARTS [0] 39,852 7,468 32,384 - -- 32,384 - - - 30,000 - - - - GOLF COURSE (OJ 155,960 195,184 (39,224) 32,308 - (6,916) 9,835 - - (30,000) 125,113 - - - PLYMOUTH 67,824 FIELD HOUSE 253,654 290,382 (36,728) 17,629 - (19,099) - - - 2,060 90,000 - - - ICE CENTER 862,289 1,011,830 (149,541) 14,278 - (135,263) - - - (30,009) 5,923 - -- - PROCTOR 2,841 GOLF COURSE 95,526 93,342 2,184 2,100 11,046 (6,762) - - - 2,000 897 - 11,046 19,678 RED WING 16,269 MARINA 522,495 510,755 11,740 171 55,111 (43,200) - - - - 54,969 -- 55,111 45,000 RENVILLE 1,303 GOLF COURSE 235,146 386,971 (151,825) 84,605 99,230 (166,450) - - - (135,000) 2,120 - 98,667 36,168 TABLE 20 PUBLIC SERVICE ENTERPRISES ANALYSIS OF CULTURE AND RECREATION ENTERPRISE OPERATIONS FOR THE YEAR ENDED DECEMBER 31,2002 DEBT SERVICE OPERATING NONOPERATING Transfers NET Federal State To/(From) Capital Interest Principal Name of City Pop. Revenue Expense Income Revenue Expense INCOME Taxes Grants Grants Other Funds Outlay Borrowing Payments Payments RICHFIELD 34,575 RECREATION 650,370 939,463 (289,093) 149,270 78,069 (217,892) - - - (980,000) 1,259,880 - 78,069 55,000 RICHMOND 1,267 CIVIC ARENA [0] 117,395 64,036 53,359 294 27,130 26,523 - - - (40,000) 19,231 -- 27,130 33,000 ROSEMOUNT 16,110 ICE ARENA 303,138 335,466 (32,328) 728 - (31,600) - - - 14,458 - - - - ROSEVILLE 34,100 GOLF COURSE 278,726 342,172 (63,446) 26,119 - (37,327) - - - (3,800) 20,604 - - -- SANDSTONE 2,459 GOLF COURSE 141,318 163,831 (22,513) 8,620 4,104 (17,997) - - - 3,690 4,277 -- 4,104 - SAUK CENTRE 4,012 ....... ARENA 108,463 149,282 5,803 15,421 (50,437) 10,601 25,000 VI (40,819) - - - - 1,500 - \0 SHAKOPEE 23,900 RECREATION 690,542 1,482,323 (791,781) 25,124 - (766,657) - - - (836,271) 4,008 - - - SPRINGFIELD 2,211 COMMUNITY CENTER [25] - - - - - - - - - - - - - - ST. CLOUD 61,248 ATHLETIC COMPLEX 1,260, I 53 1,593,794 (333,641) 294,211 238,439 (277,869) 113,661 - 12,531 (79,411) 78,031 - 238,439 120,000 CIVIC CENTER 994,182 1,333,798 (339,616) 101,367 - (238,249) -- - - (342,145) 15,631 - - - ST. PAUL 288,000 ATHLETIC PROGRAMMING [25] - - - - - - - - - - - -- - - MARINA 24,824 22,108 2,716 - - 2,716 - - - - 21,942 - - - RIVERCENTRE 7,382,132 7,126,834 255,298 462,946 403,586 314,658 - - - 125,000 - - 106,569 122,080 SPECIAL RECREATION [25] - - - - - - - - - - - - - - SPORTS DOME 178,842 372,483 (193,641) - 216,641 (410,282) - - -- (419,913) - - 204,901 135,000 ST. PETER 9,979 COMMUNITY CENTER 143,090 178,110 (35,020) 275,851 204,658 36,173 - 1I4,40 - (157,890) 3,245,234 - 201,078 - TABLE 20 PUBLIC SERVICE ENTERPRISES ANALYSIS OF CULTURE AND RECREATION ENTERPRISE OPERATIONS FOR THE YEAR ENDED DECEMBER 31,2002 DEBT SERVICE OPERATING NONOPERATING Transfers NET Federal State To/(From) Capital Interest Principal Name of City Pop. Revenue Expense Income Revenue Expense INCOME Taxes Grants Grants Other Fnnds Ontlay Borrowing Payments Payments STAPLES 3,138 COMMUNITY CENTER 104,419 244,45 I (140,032) 142,041 - 2,009 62,297 -- 71,436 - 379,458 - -- - STARBUCK 1,327 CAMPGROUND [OJ 129,295 82,629 46,666 842 21,252 26,256 - - - 26,737 3,408 - 21,252 20,700 TONKA BAY 1,566 MUNICIPAL DOCK 27,775 10,067 17,708 - - 17,708 - -- - - - -- - - TRACY 2,247 AQUA TIC CENTER [*] 40,806 90,737 (49,931) 1,084 - (48,847) - - -- (48,000) - - - - VIRGINIA 9,108 GOLF COURSE 750,410 851,161 (100,751) - 328,352 (429,103) - - - - 204,988 710,885 61,530 70,963 WADENA 4,293 ..... GOLF COURSE 229,544 296,364 170,033 21,499 81,714 0\ (66,820) - - - (125,000) 296,181 - 18,969 8,291 0 WEST ST. PAUL 19,650 GOLF COURSE 209,881 207,697 2,184 361 64,940 (62,395) - - - (71,000) - - 56,983 40,000 ICE ARENA 185,351 217,791 (32,440) II ,236 8,780 (29,984) - - - 97,000 - - - - POOL 77,651 153,955 (76,304) - 501 (76,805) - - - (26,000) - - - - WESTBROOK 744 CABLE TV 88,079 92,399 (4,320) 167 - (4,153) -- - -- - - - - - WHITE BEAR LAKE 24,874 SPORT CENTER 442,076 549,306 (107,230) 277,668 37,337 133,101 130,215 - - - 333,345 865,000 37,337 935,000 WINDOM 4,506 ARENA 222,733 375,692 (152,959) 83,645 1,355 (70,669) 78,145 -- - - 7,454 - 1,355 - CABLE TV 488,376 563,893 (75,517) 30,778 - (44,739) - - -- -- 24,179 - - - MULTI-PURPOSE CENTER 48,125 291,964 (243,839) 128,205 3,142 (118,776) 121,200 - - - 12,904 - 3,142 - WINONA 26,902 LIBRARY 20,479 1,003,327 (982,848) 1,316,104 - 333,256 139,169 - 546,516 - - -- - - RECREATION 265,382 1,096,370 (830,988) 937,922 7,680 99,254 196,899 - 733,104 (86,150) 73,668 - 10,430 150,000 TABLE 26 PERCENT CHANGE OF UNRESERVED FUND BALANCES IN THE GENERAL FUND AND SPECIAL REVENUE FUNDS 2001 TO 2002 2002 UNRESERVED FUND BALANCES AS A PERCENT OF TOTAL CURRENT EXPENDITURES BY PERCENTAGE 2002 Unreserved as December 31, 2001 December 31,2002 200112002 2002 a Percent of Unreserved Unreserved Total Unreserved Unreserved Total Percent Total Cnrrent Total Current Name of City Designated Undesignated Unreserved Designated Un designated Unreserved Change Expenditures Expenditures Extremely Low Fund Balance DANVERS -- (90,765) (90,765) -- (118,015) (118,015) 30.0% 82,976 -142.2% CALEDONIA --- (883,438) (883,438) 209,855 (1,307,260) (1,097.405) 24.2% 1,550,644 -70.8% DOVER (66,348) (1,999) (68,347) (89,017) 9,679 (79,338) 16.1% 133,836 -59.3% HENDERSON --- (203,957) (203,957) -- (251,440) (251,440) 23.3% 525,639 -47.8% GROVE CITY --- (58,539) (58,539) --- (175,678) (175,678) 200.1% 374,842 -46.9% LYND - 36,331 36,331 --- (51,385) (51,385) -241.4% 130,026 -39.5% LONGVILLE --- (54,333) (54,3~3) -- (50,938) (50,938) -6.2% 374,045 -13.6% CROSBY 476,975 (649,147) (172,172) 205,234 (518,300) (313,066) 81.8% 2,369.479 -13.2% INDEPENDENCE - 70,032 70,032 --- (202,797) (202,797) -389.6% 1,869,986 -10.8% SPICER --- 237,020 237,020 --- (26,948) (26,948) -111.4% 855,810 -3.1% DELAVAN 458,762 - 458,762 --- --- 0 -100.0% 136,411 0.0% LA PRAIRIE - 329,301 329,301 - --- 0 -100.0% 217,825 0.0% TAYLORSFALLS 32,368 82,030 114,398 - --- 0 -100.0% 469,092 0.0% ST. CLAIR --- (60,967) (60,967) 2,782 -- 2,782 -104.6% 281,510 1.0% MURDOCK --- 61,526 61,526 -- 4,038 4,038 -93.4% 147,385 2.7% N NEW MARKET 35,559 27,133 62,692 91,357 (55,649) 35,708 -43.0% 606,746 5.9% w TWO HARBORS --- 35,162 35,162 -- 177,071 177,071 403.6% 2,890,838 6.1% w WINSTED --- (170,117) (170,117) -- 86,977 86,977 -151.1% 1,295,982 6.7% CARVER -- 207,690 207,690 -- 92,375 92,375 -55.5% 1,063,046 8.7% BAUDETIE -- 256,340 256,340 -- 68,078 68,078 -73.4% 645,708 10.5% AKELEY --- 149,827 149,827 --- 27,660 27,660 -81.5% 256,114 10.8% THIEF RIVER FALLS --- 227,672 227,672 -- 522,867 522,867 129.7% 4,777,970 10.9% KIESTER - --- --- -- 22,469 22.469 204,212 11.0% FOSSTON -- (59,951) (59,951) -- 118,223 118,223 -297.2% 1,011,571 11.7% WARREN -- 1,024,144 1,024,144 -- 124,120 124,120 -87.9% 1,039,518 11.9% SOUTH ST. PAUL 111,516 1,433,815 1,545,331 132,611 1,185,906 1,318,517 -14.7% 1I,036,3J5 J1.9% HARRIS 6,000 94,161 100,161 6,000 31,648 37,648 -62.4% 302,978 12.4% INVER GROVE HEIGHTS 2,143,062 --- 2,143,062 1,282,032 - 1,282,032 -40.2% 9,978,044 12.8% BUFFALO - 251,957 251,957 .- 667,371 667,371 164.9% 5,045,473 13.2% ELKO 4,300 179,033 183,333 4,300 92,337 96,637 -47.3% 641,359 15.1% HACKENSACK - 11 ,071 11,071 -- 27,677 27,677 150.0% 181,601 15.2% HERMAN -- 58,455 58,455 --- 59,281 59,281 1.4% 367,491 16.1% ELGIN 45,191 6,581 51,772 48,851 16,094 64,945 25.4% 386,937 16.8% NORTH ST. PAUL 3,327,978 -- 3,327,978 1,975,020 (1,308,488) 666,532 -80.0% 3,866,595 17.2% GREENWOOD 122,954 --- 122,954 31,011 44,798 75,809 -38.3% 435,799 17.4% ROGERS 28,053 443,084 471,137 106,972 376,886 483,858 2.7% 2,666,383 18.1% AITON -- 251,168 251,168 --- 205,977 205,977 -J8.0% 1,106,929 ]8.6% WINONA 2,510,717 --- 2,510,717 2,987,208 --- 2,987,208 19.0% 15,345,531 19.5% WARROAD -- 863,278 863,278 -- 418,482 418,482 -51.5% 2,093,180 20.0% Low Fund Balance MONTROSE -- (6,845) (6,845) --- 134,J2J 134,J2J -2059.4% 661,778 20.3% TABLE 26 PERCENT CHANGE OF UNRESERVED FUND BALANCES IN THE GENERAL FUND AND SPECIAL REVENUE FUNDS 2001 TO 2002 2002 UNRESERVED FUND BALANCES AS A PERCENT OF TOTAL CURRENT EXPENDITURES BY PERCENTAGE 2002 Unreserved as December 31, 2001 December 31, 2002 2001/2002 2002 a Percent of Unreserved Unreserved Total Unreserved Unreserved Totar Percent Total Current Total Current Name of City Designated U ndesignated Unreserved Designated Undesignated Unreserved Change Expenditures Expenditures BYRON 356,389 317,344 673,733 318,639 (14,049) 304,590 -54.8% 1,421,563 21.4% BROWERVILLE -- 69,537 69,537 --- 78,985 78,985 13.6% 360,706 21.9% LEXINGTON --- 190,986 190,986 --- 258,527 258,527 35.4% 1,086,980 23.8% WINDOM --- 557,397 557,397 --- 540,895 540,895 -3.0% 2,273,568 23.8% GRANITE FALLS 274,271 251,866 526,137 268,293 188,899 457,192 -13.1% 1,907,477 24.0% PINE CITY --- 1,099,783 1,099,783 -- 481,413 481,413 -56.2% 1,961,966 24.5% LITCHFIELD 355,124 148,788 503,912 303,912 515,228 819,140 62.6% 3,326,558 24.6% LITILEFORK --- 179,982 179,982 --- 121,226 121,226 -32.6% 488,484 24.8% MINNEAPOLIS m 116,580,000 116,580,000 --- 124,973,000 124,973,000 7.2% 491,815,000 25.4% ROSEAU --- (170,051) (l70,051) -- 1,090,729 1,090,729 -741.4% 4,267,081 25.6% LITfLE FALLS 504,290 339,161 843,451 576,184 435,649 1,011,833 20.0% 3,953,895 25.6% LE SUEUR 734,158 31,069 765,227 576,930 376,534 953,464 24.6% 3,721,084 25.6% .BEAVERBAY -- 58,445 58,445 -- 40,829 40,829 -30.1% 157,064 26.0% NICOLLET 24,880 (25,198) (318) 24,880 32,229 57,109 .]8058.8% 217,455 26.3% ROSEVILLE 5,583,523 (1,017,199) 4,566,324 5,358,335 (I, 174,597) 4,183,738 -8.4% 15,809,164 26.5% ST. ANTHONY 1,365,591 --- 1,365,591 1,160,773 --- 1,160,773 -15.0% 4,241,516 27.4% BROOKLYN PARK 79,320 8,882,333 8,961,653 17,900 9,298,276 9,316,176 4.0% 33,862,564 27.5% IV KELLOGG 7,158 76,041 83,199 --- 54,015 54,015 -35.1% ] 86,806 28.9% w ~ SILVER LAKE 2,702 150,044 152,746 -- 161,790 161,790 5.9% 551,999 29.3% BRAINERD 1,294,629 1,475,929 2,770,558 1,692,313 1,223,025 2,915,338 5.2% 9,808,661 29.7% CORCORAN 10,000 478,683 488,683 12,000 558,629 570,629 16.8% 1,798,080 31.7% EAST GRAND FORKS 648,868 517,744 1,166,612 736,971 1,477,397 2,214,368 89.8% 6,831,710 32.4% ~ 200,000 2,944,560 3,144,560 --- 3,534,080 3,534,080 12.4% 10,540,568 33.5% ST. PAUL 53,191,899 36,255,306 89,447,205 10,291,731 78,915,983 89,207,714 -0.3% 265,377,393 33.6% NEW BRIGHTON 3,063,24] --- 3,063,241 3,093,311 -- 3,093,311 1.0% 9,136,088 33.9% OGILVIE 88,796 --- 88,796 68,860 --- 68,860 -22.5% 199,976 34.4% AURORA 484,619 --- 484,619 474,337 --- 474,337 -2.1% 1,373,382 34.5% CEYLON 38,065 39,966 78,031 24,574 55,479 80,os3 2.6% 229,472 34.9% Acceptable Fund Balance BREWSTER --- 31,533 31,533 -- 52,278 52,278 65.8% 149,014 35.1% ROCHESTER 7,889,158 13,418,891 21,308,049 7,563,823 12,798,366 20,362,189 -4.4% 57,603,318 35.3% NEVIS 10,582 30,315 40,897 10,966 82,604 93,570 128.8% 263,652 35.5% RICHFIELD 5,634,914 370,907 6,005,821 7,004,846 425,329 7,430,175 23.7% 20,584,693 36.1% SAVAGE 599,424 3,293,311 3,892,735 839,828 2,561,438 3,401,266 -12.6% 9,247,991 36.8% GILBERT --- 521,592 521,592 100,423 611,333 711,756 36.5% 1,934,502 36.8% PLYMOUTH 9,875,793 - 9,875,793 10,114,418 (l,168) 10,113,250 2.4% 27,274,003 37.1% BURNSVILLE 10,164,108 (68,284) 10,095,824 8,441,317 --- 8,441,317 -16.4% 22,640,211 37.3% LA CRESCENT 407,097 106,260 513,357 544,342 87,357 631,699 23.1% 1,668,941 37.9% HOUSTON -- 183,759 183,759 --- 233,838 233,838 27.3% 615,856 38.0% COLUMBIA HEIGHTS 4,625,954 2,455,229 7,081,183 3,650,254 351,044 4,00 I ,298 -43.5% 10,446,760 38.3% TRACY 517,943 --- 517,943 553,769 --- 553,769 6.9% 1,440,817 38.4% MINNETONKA 1,000,000 6,740,208 7,740,208 --- 7,501,551 7,501,551 -3.1% 19,357,022 38.8% TABLE 26 PERCENT CHANGE OF UNRESERVED FUND BALANCES IN THE GENERAL FUND AND SPECIAL REVENUE FUNDS 2001 TO 2002 2002 UNRESERVED FUND BALANCES AS A PERCENT OF TOTAL CURRENT EXPENDITURES BY PERCENT AGE 2002 Unreserved as December 31, 2001 December 31, 2002 200112002 2002 a Percent of Total Current Unreserved Unreserved Total Unreserved Unreserved Total Percent Total Current Expenditures Name of City Designated Undesignated Unreserved Designated Undesignated Unreserved Change Expenditures WORTHINGTON 1,711,838 --- 1,711,838 2,195,767 --- 2,195,767 28.3% 5,661,270 38.8% LANESBORO 393,823 (167,525) 226,298 362,460 (128,760) 233,700 3.3% 592,841 39.4% MAPLE GROVE 274,827 8,300,067 8,574,894 408,079 8,942,440 9,350,519 9.0% 23,625,796 39.6% WHITE BEAR LAKE 2,310,000 869,416 3,179,416 2,435,000 517,909 2,952,909 -7.1% 7,340,406 40.2% ELY 332,941 1,182,944 1,515,885 331,241 1,172,321 1,503,562 -0.8% 3,641,156 41.3% HUTCHINSON 964,924 2,275,553 3,240,477 1,006,583 2,558,690 3,565,273 10.0% 8,572,806 41.6% NEW ULM 2,027,146 1,172,434 3,199,580 2,307,478 1,047,919 3,355,397 4.9% 7,985,602 42.0% PILLAGER --- 55,582 55,582 --- 80,162 80,162 44.2% 190,176 42.2% SARTELL 1,294,270 --- 1,294,270 1,376,917 -- 1,376,917 6.4% 3,261,256 42.2% ALEXANDRIA 2,444,924 276,565 2,721,489 2,145,620 221,157 2,366,777 -13.0% 5,596,120 42.3% NORTH MANKATO 1,615,978 8,150 1,624,128 1,849,436 19,044 1,868,480 15.0% 4,403,452 42.4% SHOREVIEW 3,610,100 --- 3,610,100 3,944,329 (17,148) 3,927,181 8.8% 9,253,391 42.4% BACKUS -- 27,909 27,909 -- 79,301 79,301 184.1% 186,326 42.6% PROCTOR --- 595,560 595,560 --- 683,273 683,273 14.7% 1,591,049 42.9% MAPLEWOOD 6,532,710 151,511 6,684,221 6,668,303 40,170 6,708,473 0.4% 15,610,340 43.0% EAGLE LAKE 355,815 - 355,815 - 336,304 336,304 -5.5% 769,467 43.7% P ARKERS PRAIRIE 371,224 248,546 619,770 410,796 (65,083) 345,713 -44.2% 782,559 44.2% IV STILLWATER 3,938,289 -- 3,938,289 4,412,529 (874) 4,411 ,655 12.0% 9,918,395 44.5% w VI ORTONVlLLE 166,650 237,005 403,655 350,251 262,741 612,992 51.9% 1,372,676 44.7% VICTORIA -- 3,622,218 3,622,218 - 912,405 912,405 -74.8% 2,040,423 44.7% KASOTA - 135,034 135,034 --- 137,173 137,173 1.6% 306,069 44.8% DEER RIVER --- --- - 125,317 144,503 269,820 599,533 45.0% EDEN VALLEY 234,787 (16,203) 218,584 243,265 26,977 270,242 23.6% 598,956 45.1% HIBBING 2,713,545 1,896,260 4,609,805 3,839,095 1,760,021 5,599,116 21.5% 12,389,619 45.2% HAYFIELD 404,309 97,735 502,044 310,156 65,300 375,456 -25.2% 814,066 46.1% HANOVER 213,772 58,020 271,792 263,949 100,058 364,007 33.9% 788,671 46.2% MOORHEAD 5,754,024 1,045,889 6,799,913 6,495,730 2,139,697 8,635,427 27.0% 18,636,467 46.3% NORTH BRANCH 1,233,206 (360,458) 872,748 1,427,966 (345,782) 1,082,184 24.0% 2,331,680 46.4% REDWOOD FALLS 544 1,856,491 1,857,035 544 1,692,060 1,692,604 -8.9% 3,621,310 46.7% DAYTON 770,167 --- 770,167 779,989 -- 779,989 1.3% 1,666,389 46.8% CROOKSTON --- 2,602,908 2,602,908 -- 2,630,153 2,630,153 1.0% 5,569,473 47.2% AUSTIN 3,200,000 2,217,155 5,417,155 4,100,000 1,885,436 5,985,436 10.5% 12,637,675 47.4% FARMINGTON 1,913,914 197,854 2,111,768 2,372,401 658,692 3,031,093 43.5% 6,390,875 47.4% B1WABIK 396,813 81,483 478,296 499,659 56,554 556,213 16.3% 1,154,158 48.2% MONTEVIDEO 857,109 396,638 1,253,747 906,481 477,556 1,384,037 10.4% 2,858,364 48.4% BENSON 593,832 680,055 1,273,887 801,985 432,769 1,234,754 -3.1% 2,526,441 48.9% MORRIS 1,335,945 474,375 1,810,320 1,467,571 (21,120) 1,446,451 -20.1% 2,954,992 48.9% MOUNTAIN IRON 1,104,747 7,088 1,111,835 1,145,065 6,095 1,151,160 3.5% 2,339,214 49.2% KERKHOVEN -- 166,489 166,489 -- 153,167 153,167 -8.0% 310,007 49.4% LUVERNE 1,017,340 43,216 1,060,556 1,121,743 18,884 1,140,627 7.5% 2,287,083 49.9% Moderately High Fund Balance ARDEN HILLS 674,497 655,267 1,329.764 666,104 746,462 1,412,566 6.2% 2,813,372 50.2% TABLE 26 PERCENT CHANGE OF UNRESERVED FUND BALANCES IN THE GENERAL FUND AND SPECIAL REVENUE FUNDS 2001 TO 2002 2002 UNRESERVED FUND BALANCES AS A PERCENT OF TOTAL CURRENT EXPENDITURES BY PERCENTAGE 2002 Unreserved as December 31, 2001 December 31,2002 200l/2002 2002 a Percent of Unreserved Unreserved Total Unreserved Unreserved Total Percent Total Current Total Current Name of City Designated U ndesignated Unreserved Designated Undesignated Unreserved Change Expenditures Expenditures ANDOVER 3,338,329 1,791,510 5,129,839 3,826,611 (1,804) 3,824,807 -25.4% 7,564,856 50.6% SPRING LAKE PARK 907,728 472,808 1,380,536 1,001,310 501,391 1,502,701 8.8% 2,945,954 51.0% HINCKLEY _.- 359,516 359,516 --- 420,590 420,590 17.0% 821,742 51.2% CHASKA 3,536,047 58,298 3,594,345 3,889,446 478,409 4,367,855 21.5% 8,531,572 51.2% HERON LAKE 272,873 (45,357) 227,516 298,003 (47,914) 250,089 9.9% 486,328 51.4% NEW HOPE 3,867,077 968,878 4,835,955 3,570,769 1,268,922 4,839,691 0.1% 9,347,700 51.8% CHANHASSEN 3,363,885 2,082,302 5,446,187 3,831,773 1,750,864 5,582,637 2.5% 10,781,518 51.8% GOODVIEW -- 347,424 347,424 -- 410,748 410,748 18.2% 785,287 52.3% HANCOCK -- 124,515 124,515 --- 152,403 152,403 22.4% 289,705 52.6% PEQUOT LAKES --- 306,660 306,660 --- 473,224 473,224 54.3% 884,327 53.5% PERHAM 112,872 459,914 572,786 112,872 650,324 763,196 33.2% 1,420,944 53.7% WELLS 515,555 290,144 805,699 554,120 321,800 875,920 8.7% 1,630,152 53.7% WYOMING 298,043 329,291 627,334 301,279 302,885 604,164 -3.7% 1,104,935 54.7% ST. FRANCIS 959,916 --- 959,916 1,240,028 --- 1,240,028 29.2% 2,257,604 54.9% RAYMOND --- 74,378 74,378 -- 129,183 129,183 73.7% 233,840 55.2% EVELETH 236,418 1,8 I 6,940 2,053,358 177,139 1,688,817 1,865,956 -9.1% 3,354,594 55.6% LINO LAKES 3,859,895 -- 3,859,895 4,257,491 -- 4,257,491 10.3% 7,630,698 55.8% tv MANKATO 8,739,191 523,900 9,263,091 9,611,494 489,711 10,101,205 9.0% 18,031,556 56.0% w 0\ GRANT 10,279 522,778 533,057 8,810 458,721 467,531 -12.3% 834,408 56.0% ANOKA 3,450,000 1,079,487 4,529,487 3,500,000 1,120,375 4,620,375 2.0% 8,244,658 56.0% FRIDLEY 8,927,958 (31,221) 8,896,737 7,735,984 --- 7,735,984 -13.0% 13,763,242 56.2% MOUND 354,769 1,596,537 1,951,306 330,025 2,111,700 2,441,725 25.1% 4,317,988 56.5% LONG PRAIRIE 509,000 211,331 720,331 509,000 269,053 778,053 8.0% 1,374,743 56.6% MONTGOMERY 793,491 31,651 825,142 770,584 25,410 795,994 -3.5% 1,405,648 56.6% DARWIN 8,976 35,014 43,990 9,082 19,904 28,986 -34.1% 50,936 56.9% JORDAN 1,001,175 97,432 1,098,607 1,025,817 82,404 1,108,221 0.9% 1,937,602 57.2% LAKEVILLE 7,425,022 - 7,425,022 8,401,505 --- 8,401,505 13.2% 14,574,283 57.6% DILWORTH 354,112 25,281 379,393 410,510 189,799 600,309 58.2% 1,033,489 58.1% ALBERT LEA 5,880,321 2,467,426 8,347,747 4,189,583 2,593,963 6,783,546 -18.7% 11,629,385 58.3% BLOOMINGTON 38,903,104 --- 38,903,104 28,919,470 -- 28,919,470 -25.7% 49,231,742 58.7% SAUK CENTRE 621,640 342,828 964,468 1,038,995 283,906 1,322,901 37.2% 2,243,462 59.0% WAYZATA 1,748,979 -- 1,748,979 1,745,694 --- 1,745,694 '0.2% 2,950,773 59.2% CHISHOLM --- 1,526,729 1,526,729 - 2,088,298 2,088,298 36.8% 3,520,329 59.3% COKATO --- 383,716 383,716 --- 661,476 66],476 72.4% 1,112,245 59.5% DULUTH 1,937,782 39,836,457 41,774,239 2,345,863 45,175,883 47,521,746 13.8% 79,341,013 59.9% MAHTOMEDI 1,246,110 -- 1,246,11 0 1,447,703 --- 1,447,703 16.2% 2,414,430 60.0% EAST BETHEL 963,522 (5,629) 957.893 1,153,580 (6,846) 1,146,734 19.7% 1,910,417 60.0% ST. CHARLES 237,766 895,686 1,133,452 186,485 712,401 898,886 -20.7% 1,496,084 60.1% BUHL 17,082 427,211 444,293 15,605 513,450 529,055 19.1% 868,490 60.9% IVANHOE --- 184,825 184,825 -- 222,736 222,736 20.5% 365,478 60.9% ELK RIVER 4,487,602 7,345,651 11,833,253 3,852,642 1,555,836 5,408,478 -54.3% 8,835,579 61.2% LAKE CITY 928,221 1,014,116 1,942,337 864,909 866,351 1,731,260 -10.9% 2,823,542 61.3% WADENA 917,408 291,055 1,208,463 804,305 419,620 1,223,925 1.3% 1,995,978 61.3% TABLE 26 PERCENT"CHANGE OF UNRESERVED FUND BALANCES IN THE GENERAL FUND AND SPECIAL REVENUE FUNDS 2001 TO 2002 2002 UNRESERVED FUND BALANCES AS A PERCENT OF TOTAL CURRENT EXPENDITURES BY PERCENTAGE 2002 Unreserved as December 31, 2001 December 31, 2002 2001/2002 2002 a Percent of Unreserved Unreserved Total Unreserved Unreserved Total Percent Total Cnrrent Total Cnrrent Name of City Designated Un designated Unreserved Designated Undesignated Unreserved Change Expenditures Expenditures MEDFORD 343,884 (258,960) 84,924 339,276 (151,197) 188,079 121.5% 306,456 61.4% EDEN PRAIRIE 4,212,860 8,743,014 12,955,874 15,099,670 753,437 15,853,107 22.4% 25,750,135 61.6% BLUE EARTH 1 ,267,705 (191,283) 1,076,422 1,414,770 (70,885) 1,343,885 24.8% 2,180,970 61.6% MAYNARD 30,000 32,563 62,563 30,000 96,639 126,639 102.4% 205,140 61.7% WASECA 2,778,509 (46,830) 2,731,679 2,887,589 899 2,888,488 5.7% 4,672,238 61.8% SPRING VALLEY 411,069 1,165,624 1,576,693 414,044 975,579 1,389,623 -11.9% 2,230,541 62.3% AVON 372,431 164,866 537,297 381,691 148,872 530,563 -1.3% 849,820 62.4% MOOSE LAKE 380,000 70,780 450,780 380,000 175,372 555,372 23.2% 888,438 62.5% ST. MICHAEL 1,959,234 1,903,813 3,863,047 2,131,936 66,086 2,198,022 -43.1% 3,511,853 62.6% F AlRF AX 266,000 272,018 538,018 265,000 237,778 502,778 -6.5% 802,554 62.6% NORTHFIELD 3,550,000 2,492,266 6,042,266 3,550,000 2,017,198 5,567,198 -7.9% 8,723,411 63.8% FOREST LAKE 2,956,244 2,740,331 5,696,575 3,452,384 2,020,413 5,472,797 -3.9% 8,561,839 63.9% CENTERVILLE 712,807 5,926 718,733 937,932 11,139 949,071 32.0% 1,484,374 63.9% APPLETON 691,919 88,729 780,648 698,303 326,118 ] ,024,421 31.2% 1,600,579 64.0% COTTONWOOD ] 88,494 130,699 319,193 --- 437,388 437,388 37.0% 683,172 64.0% BABBm 234,804 553,993 788,797 222,20 I 670,520 892,721 13.2% 1,380,618 64.7% COON RAPIDS 9,267,062 4,459,711 13,726,773 9,549,855 4,239,387 13,789,242 0.5% 21,280,932 64.8% N GREENBUSH -- 354,354 354,354 -- 255,704 255,704 -27.8% 394,381 64.8% w -...) High Fund Balance CLEVELAND -- -- -- 143,114 --- 143,114 219,535 65.2% FARlBAULT 5,367,817 1,433,495 6,801,3]2 5,317,202 2,981,251 8,298,453 22.0% 12,710,504 65.3% LAUDERDALE -- 406,068 406,068 --- 415,662 415,662 2.4% 635,466 65.4% RED LAKE FALLS --- 632,148 632,148 - 708,983 708,983 12.2% 1,082,598 65.5% HENDRICKS -- 259,190 259,190 --- 281,064 28],064 8.4% 428,815 65.5% ALPHA --- 62,526 62,526 -- 50,810 50,810 -18.7% 77,474 65.6% ST. CLOUD 14,616,746 5,925,943 20,542,689 14,669,609 9,219,559 23,889,168 16.3% 36,] 95,931 66.0% OAK PARK HEIGHTS 1,238,969 -- 1,238,969 1,408,571 -- 1,408,571 13.7% 2,130,380 66.1% GLENCOE 1,278,936 647,443 1,926,379 1,486,425 272,381 1,758,806 -8.7% 2,624,665 67.0% MENAHGA 134,629 158,388 293,017 36,327 329,054 365,381 24.7% 543,525 67.2% HOPKINS 3,198,180 1,968,679 5,166,859 2,902,971 2,989,415 5,892,386 14.0% 8,683,182 67.9% HASTINGS 4,779,440 1,347,445 6,126,885 3,649,919 2,324,100 5,974,019 -2.5% 8,790,729 68.0% ROCKFORD 717,617 (34,184) 683,433 713,469 143,533 857,002 25.4% 1,259,590 68.0% RENVlLLE 280,228 262,420 542,648 289,467 284,483 573,950 5.8% 842,022 68.2% SLAYTON 695,099 - 695,099 756,898 --- 756,898 8.9% 1,104,634 68.5% HOWARD LAKE 407,095 844,357 1,251,452 347,398 491,990 839,388 -32.9% 1,221,487 68.7% WELCOME 390,605 128,687 519,292 386,321 186,996 573,317 10.4% 833,287 68.8% BRECKENRIDGE 1,271,898 465,666 1,737,564 1,306,916 361,180 1,668,096 -4.0% 2,415,352 69.1% TONKABAY - 532,460 532,460 17,521 500,712 518,233 -2.7% 749,648 69.1% ULEN 15,298 512,539 527,837 17,097 152,871 169,968 -67.8% 245,786 69.2% OWATONNA 9,075,568 519,540 9,595,108 9,578,076 493,702 10,071,778 5.0% 14,531,410 69.3% EXCELSIOR 678,144 310,073 988,217 698,507 295,501 994,008 0.6% 1,433,316 69.4% PARK RAPIDS 655,217 791,403 1,446,620 798,262 819,322 1,617,584 11.8% 2,324,067 69.6% . TABLE 26 PERCENT CHANGE OF UNRESERVED FUND BALANCES IN THE GENERAL FUND AND SPECIAL REVENUE FUNDS 2001 TO 2002 2002 UNRESERVED FUND BALANCES AS A PERCENT OF TOTAL CURRENT EXPENDITURES BY PERCENTAGE 2002 Unreserved as December 31,2001 December 31, 2002 200112002 2002 a Percent of Unreserved Unreserved Total Unreserved Unreserved Total Percent Total Current Total Current Name of City Designated Undesignated Unreserved Designated Undesignated Unreserved Change Expenditures Expenditures RUSHMORE 132,465 (2,116) 130,349 110,356 5,586 115,942 -11.1% 166,025 69.8% CHAMPLIN 4,058,700 3,139,947 7,198,647 2,804,943 1,876,019 4,680,962 -35.0% 6,678,367 70.1% HOYT LAKES 730,600 1,480,609 2,211 ,209 756,940 1,164,391 1,921,331 -13.1% 2,735,948 70.2% WILLOW RIVER 48,217 31,186 79,403 - 77,755 77,755 -2.1% 110,490 70.4% HECTOR 483,808 --- 483,808 489,538 --- 489,538 1.2% 695,384 70.4% PINE ISLAND 1,215,916 166,845 1,382,761 713,795 177,805 891,600 -35.5% 1,263,743 70.6% VERMJLLlON --- --- --- --- 84,152 84,152 118,483 71.0% MINNETRlSTA 1,155,311 638,428 1,793,739 1,196,314 662,778 1,859,092 3.6% 2,614,659 71.1% TRUMAN 364,049 59,247 423,296 373,960 41,142 415,102 -1.9% 581,096 71.4% BECKER --- 1,923,236 1,923,236 --- 2,034,057 2,034,057 5.8% 2,840,625 71.6% ARLINGTON 342,720 501,257 843,977 368,734 528,951 897,685 6.4% 1,253,167 71.6% HARMONY 328,469 123,239 451,708 334,312 239,032 573,344 26.9% 800,069 71.7% EDINA 14,359,821 1,435,949 15,795,770 14,325,972 1,589,518 15,915,490 0.8% 22,181,498 71.8% FERGUS FALLS 2,861,581 2,136,786 4,998,367 3,371,942 2,365,491 5,737,433 14.8% 7,959,769 72.1% TOWER 199,441 410,391 609,832 144,542 495,900 640,442 5.0% 888,072 72.1% BAGLEY 935,392 (3,048) 932,344 865,085 (54,707) 810,378 -13.1% 1,121,584 72.3% VADNAIS HEIGHTS 3,125,956 - 3,125,956 2,719,594 -- 2,719,594 -13.0% 3,755,143 72.4% N SPRINGFIELD 702,82 I 201,556 904,377 781,324 210,950 992,274 9.7% 1,363,925 72.8% VJ 00 WOODBURY 9,379,613 1,518,071 10,897,684 9,733,705 2,016,700 11,750,405 7.8% 16,075,015 73.1% PINE RIVER --- 826,256 826,256 --- 578,912 578,912 -29.9% 787,333 73.5% KENYON 396,657 733,602 1,130,259 265,611 563,655 829,266 .26.6% 1,126,619 73.6% OAKDALE 5,898,690 1,251,528 7,150,218 5,967,594 1,791,330 7,758,924 8.5% 10,475,747 74.1% SLEEPY EYE - 991,133 991,133 -- 1,414,607 1,414,607 42.7% 1,908,640 74.1% EAGAN 3,074,748 9,680,794 12,755,542 5,598,055 9,328,995 14,927,050 17.0% 20,133,150 74.1% BLOOMING PRAIRIE 11,250 567,856 579,106 11 ,250 664,199 675,449 16.6% 909,844 74.2% COLOGNE -- 248,860 248,860 323,212 --. 323,212 29.9% 435,024 74.3% DETROIT LAKES 750,378 2,177,812 2,928,190 679,376 2,412,263 3,091,639 5.6% 4,144,466 74.6% ST. PETER --- 3,867,515 3,867,515 --- 4,116,317 4,116,317 6.4% 5,483,112 75.1% LAKE CRYSTAL 671,160 - 671,160 872,380 .-- 872,380 30.0% 1,156,977 75.4% MADISON 351,534 333,966 685,500 396,567 515,813 912,380 33.1% 1,208,813 75.5% NEW LONDON 242,291 82,185 324,476 284,194 89,461 373,655 15.2% 491,533 76.0% ADA -- 1,348,310 1,348,310 - 1,188,677 1,188,677 -11.8% 1,563,445 76.0% PLAlNVIEW 1,168,145 131,547 1,299,692 1,089,787 105,042 1,194,829 .8.1% 1,563,706 76.4% ZIMMERMAN 497,853 256,363 754,216 749,118 206,542 955,660 26.7% 1,225,738 78.0% RED WING 10,227,411 (2,676,226) 7,551,185 13,926,295 (2,115,219) 11,811,076 56.4% 15,092,289 78.3% BAXTER 700,469 990,624 1,691,093 1,599,195 852,394 2,451,589 45.0% 3,125,313 78.4% HUGO 1,869,239 -- 1,869,239 1,565,070 --- 1,565,070 -16.3% 1,974,846 79.3% OSTRANDER --- 85,403 85,403 -- 93,068 93,068 9.0% 117,381 79.3% BEMIDJI 3,422,428 561,761 3,984,189 4,320,369 1,265,692 5,586,061 40.2% 7,009,549 79.7% HANLEY FALLS 79,069 59,947 139,016 90,605 28,470 119,075 -14.3% 149,365 79.7% SAUK RAPIDS 2,997,416 (99,602) 2,897,814 3,324,314 4,207 3,328,521 14.9% 4,141,349 80.4% ST. LOUIS PARK 20,020,502 --- 20,020,502 20,906,274 - 20,906,274 4.4% 25,872,459 80.8% SHOREWOOD 1,905,309 (8,342) 1,896,967 2,112,985 -- 2,112,985 11.4% 2,599,358 81.3% TABLE 26 PERCENT CHANGE OF UNRESERVED FUND BALANCES IN THE GENERAL FUND AND SPECIAL REVENUE FUNDS 2001 TO 2002 2002 UNRESERVED FUND BALANCES AS A PERCENT OF TOTAL CURRENT EXPENDITURES BY PERCENTAGE 2002 Unreserved as December 31,2001 December 31, 2002 200112002 2002 a Percent of Unreserved Unreserved Total Unreserved Unreserved Total Percent Total Current Total Current Name of City Designated U ndesignated Unreserved Designated Undesignated Unreserved Change Expenditures Expenditures ZUMBROTA 889,825 239,891 1,129,716 855,252 279,953 1,135,205 0.5% 1,393,809 81.4% ORONO 1,863,468 1,399,933 3,263,401 2,389,697 1,464,000 3,853,697 18.1% 4,728,685 81.5% GOLDEN VALLEY 8,452,917 293,077 8,745,994 8,600,751 289,482 8,890,233 1.6% 10,828,840 82.1% BROOKLYN CENTER 6,437,653 4,755,492 11,193,145 6,527,973 5,682,327 12,210,300 9.1% 14,864,532 82.1% NORTH OAKS 446,418 1,114,732 1,561,150 397,996 895,028 1,293,024 -17.2% 1,571,048 82.3% MENDOTA HEIGHTS 2,223,811 1,400,865 3,624,676 2,223,351 1,485,852 3,709,203 2.3% 4,494,871 82.5% MINNEOTA 456,698 -- 456,698 454,576 -- 454,576 -0.5% 547,692 83.0% CAMBRIDGE 1,482,637 679,922 2,162,559 2,734,230 (21,354) 2,712,876 25.4% 3,232,851 83.9% ISLE 232,465 116,097 348,562 292,115 96,154 388,269 11.4% 462,444 84.0% BARNESVILLE -- 539,877 539,877 --- 1,184,339 1,184,339 119.4% 1,406,500 84.2% LITTLE CANADA 1,740,492 --- 1,740,492 1,876,629 -- 1,876,629 7.8% 2,210,388 84.9% BIG LAKE 672,502 1,271,633 1,944,135 687,262 1,412,772 2,100,034 8.0% 2,472,396 84.9% ELLENDALE .- 99,567 99,567 - 157,666 157,666 58.4% 184,175 85.6% MOUNDS VIEW 2,277,814 263,602 2,541,416 2,482,266 1,330,750 3,813,016 50.0% 4,437,555 85.9% LE CENTER 400,000 45,386 445,386 400,000 897,325 1,297,325 191.3% 1,509,706 85.9% PRINCETON 1,009,000 739,595 1,748,595 1,007,000 759,882 1,766,882 1.0% 2,055,442 86.0% BELLE PLAINE -- 1,774,923 1,774,923 -- 1,528,639 1,528,639 -13.9% 1,777,781 86.0% N APPLE VALLEY 2,700,000 11,727,864 14,427,864 2,700,000 12,319,799 15,019,799 4.1% 17,459,117 86.0% VJ \0 CANBY 847,797 396,045 1,243,842 847,797 18,341 866,138 -3Q.4% 998,483 86.7% CIRCLE PINES 1,765,563 261,491 2,027,054 1,828,093 335,934 2,164,027 6.8% 2,491,289 86.9% FALCON HEIGHTS 658,365 417,820 1,076,185 659,653 579,613 1,239,266 15.2% 1,422,946 87.1% MORA 78,499 1,146,423 1,224,922 82,594 1,367,726 1,450,320 18.4% 1,659,320 87.4% NEWPORT 1,089,538 448,103 1,537,641 1,376,379 238,738 1,615,117 5.0% 1,847,758 87.4% BROOTEN 444,95 I 86,158 531,109 336,572 72,224 408,796 -23.0% 466,936 87.5% CROSSLAKE -- 452,209 452,209 -.- 1,781,124 1,781,124 293.9% 2,030,68 I 87.7% ST. JOSEPH 972,398 751,799 1,724,197 677,727 827,934 1,505,661 .12.7% 1,716,110 87.7% HALLOCK --- 470,615 470,615 --- 502,479 502,479 6.8% 572,421 87.8% ROBBINSDALE 6,549,307 (652,438) 5,896,869 3,783,677 2,841,770 6,625,447 12.4% 7,532,720 88.0% LISMORE 107,519 - 107,519 108,856 -.- 108,856 1.2% 123,367 88.2% CHlSAGO CITY --- 1,427,486 1,427,486 m 952,185 952,185 -33.3% 1,076,947 88.4% OLIVIA 104,878 795,471 900,349 1,010,086 174,640 1,184,726 31.6% 1,337,551 88.6% FA1RMONT 4,228,642 783,131 5,011,773 4,287,738 947,233 5,234,971 4.5% 5,893,065 88.8% LAKE PARK - 159,600 159,600 -- 236,220 236,220 48.0% 265,738 88.9% CLOQUET 5,004,224 1,292,015 6,296,239 4,989,040 1,747,800 6,736,840 7.0% 7,570,759 89.0% GRAND RAPIDS 6,285,238 (94,970) 6, I 90,268 5,836,323 (15,491) 5,820,832 -6.0% 6,496,671 89.6% LEWlSTON 210,000 297,448 507,448 400,604 115,832 5 I 6,436 1.8% 574,032 90.0% RANIER -- -- -' --- 93,289 93,289 103,492 90.1% NEW PRAGUE 2,020,343 484,147 2,504,490 2,194,104 191,806 2,385,910 -4.7% 2,643,108 90.3% MINNESOTA LAKE 165,000 392,616 557,616 348,686 --- 348,686 -37.5% 380,791 91.6% NEW RICHLAND 551,848 174,341 726, I 89 485,761 2,292 488,053 -32.8% 532,434 91.7% WANAMlNGO 34,500 317,702 352,202 34,500 380,817 415,317 17.9% 452,958 91.7% CANNON FALLS 975,346 1,145,216 2,120,562 1,153,677 1,499,258 2,652,935 25.1% 2,890,766 91.8% RUSHFORD 310,519 324,315 634,834 327,907 387,430 715,337 12.7% 771,184 92.8% TABLE 26 PERCENT CHANGE OF UNRESERVED FUND BALANCES IN THE GENERAL FUND AND SPECIAL REVENUE FUNDS 2001 TO 2002 2002 UNRESERVED FUND BALANCES AS A PERCENT OF TOTAL CURRENT EXPENDITURES BY PERCENT AGE 2002 Unreserved as December 31, 2001 December 31, 2002 200112002 2002 a Percent of Unreserved Unreserved Total Unreserved Unreserved Total Percent Total Current Total Current Name of City Designated Undesignated Unreserved Designated Undesignated Unreserved Change Expenditures Expenditures WEST ST. PAUL 4,484,387 270,565 4,754,952 7,656,564 105,841 7,762,405 63.2% 8,318,852 93.3% COSMOS 243,721 42,828 286,549 251,660 (1,148) 250,512 -12.6% 267,899 93.5% COITAGE GROVE 9,346,899 (818,140) 8,528,759 10,355,585 (704,256) 9,651,329 13.2% 10,315,299 93.6% ORR -- 386,661 386,661 --- 522,312 522,312 35.1% 558,177 93.6% MADISON LAKE 381,301 17,749 399,050 471,060 9,718 480,778 20.5% 513,737 93.6% SOUTH HAVEN -- 75,069 75,069 m 195,490 195,490 160.4% 206,936 94.5% GAYLORD 928,201 (66,908) 861,293 1,073,417 (82,087) 991,330 15.1% 1,049,284 94.5% ST. AUGUSTA -- 545,068 545,068 --- 488,327 488,327 -10.4% 514,188 95.0% HARTLAND --- 97,114 97,114 38,508 82,591 121,099 24.7% 127,388 95.1% HAM LAKE 2,154,260 208,025 2,362,285 2,290,793 339,713 2,630,506 11.4% 2,765,827 95.1% BROWNSDALE -- 290,948 290,948 -- 240,0 II 240,011 -17.5% 251,882 95.3% DAWSON -- 906,941 906,941 -- 1,160,363 1,160,363 27.9% 1,217,449 95.3% WOOD LAKE -- 197,860 197,860 --- 212,161 212,161 7.2% 222,073 95.5% FULDA 541,307 -- 541,307 583,583 - 583,583 7.8% 610,438 95.6% BOYD 132,000 20,069 152,069 --- 174,938 174,938 15.0% 181,031 96.6% SILVER BAY 486,554 1,211,295 1,697,849 520,255 1,179,090 1,699,345 0.1% 1,752,336 97.0% UNDERWOOD - 115,558 115,558 85,629 35,255 120,884 4.6% 124,345 97.2% N MEDINA 1,073,873 1,465,463 2,539,336 1,072,702 1,309,052 2,381,754 -6.2% 2,415,396 98.6% """ 0 RICE 61,956 360,687 422,643 82,617 406,474 489,091 15.7% 493,547 99.1% OSAKIS 653,357 --- 653,357 886,157 -- 886,157 35.6% 890,919 99.5% Very High Fund Balance PRESTON 350,000 427,307 777,307 419,881 424,358 844,239 8.6% 841,566 100.3% ELYSIAN 215,446 117,522 332,968 231,091 143,469 374,560 12.5% 372,810 100.5% KIMBALL -- 394,430 394,430 -- 464,578 464,578 17.8% 459,895 101.0% PRIOR LAKE 6,327,838 -- 6,327,838 6,856,820 --- 6,856,820 8.4% 6,759,126 101.4% BLUFFTON -- 67,273 67,273 --- 52,256 52,256 -22.3% 51,407 101.7% DUNDEE 43,852 -- 43,852 40,197 --- 40,197 -8.3% 39,541 101.7% BELGRADE 327,543 50,754 378,297 350,715 53,426 404,141 6.8% 396,713 101.9% STEW ARTVlLLE 1,059,240 682,364 1,741,604 1,215,588 507,008 1,722,596 -1.1% 1,682,298 102.4% WYKOFF 181,925 13,578 195,503 183,417 3,922 187,339 -4.2% 181,922 103.0% MARSHALL 5,476,555 2,293,902 7,770,457 5,812,431 2,664,677 8,477,108 9.1% 8,215,322 103.2% BEL VIEW 205,000 77,949 282,949 205,000 47,692 252,692 -10.7% 243,267 .103.9% FIFTY LAKES --- 246,655 246,655 --- 219,197 219,197 -11.1% 211,011 103.9% JENKINS -- 145,529 145,529 - 143,096 143,096 -1.7% 137,575 104.0% WATERVlLLE 441,922 385,868 827,790 540,796 373,614 914,410 10.5% 877,902 104.2% KASSON 1,000,000 811,159 1,811,159 1,000,000 908,251 1,908,251 5.4% 1,823,689 104.6% FOLEY 637,788 761,614 1,399,402 693,357 616,686 1,310,043 -6.4% 1,245,562 105.2% DASSEL 171,121 380,555 551,676 239,697 379,546 619,243 12.2% 585,976 105.7% SPRING PARK 379,300 502,462 881,762 381,200 456,720 837,920 -5.0% 791,647 105.8% EYOTA 305,179 89,992 395,171 427,934 54,231 482,165 22.0% 454,130 106.2% LINDSTROM 600,340 1,774,179 2,374,519 754,082 396,857 1,150,939 -51.5% 1,074,037 107.2% WALNUT GROVE 238,000 139,411 377,411 238,000 58,004 296,004 -21.6% 275,446 107.5% TABLE 26 PERCENT CHANGE OF UNRESERVED FUND BALANCES IN THE GENERAL FUND AND SPECIAL REVENUE FUNDS 2001 TO 2002 2002 UNRESERVED FUND BALANCES AS A PERCENT OF TOTAL CURRENT EXPENDITURES BY PERCENTAGE 2002 Unreserved as December 31, 2001 December 31, 2002 200112002 2002 a Percent of Unreserved Unreserved Total Unreserved Unreserved Total Percent Total Current Total Current Name of City Designated Undesignated Unreserved Designated Undesignated Unreserved Change Expenditures Expenditures ADRIAN 59,089 769,052 828,141 23,650 790,266 813,916 -1.7% 753,948 108.0% ST. JAMES 1,380,430 3,133 1,383,563 2,154,217 91,556 2,245,773 62.3% 2,064,213 108.8% JANESVILLE 400,000 468,051 868,051 400,000 466,112 866,112 -0.2% 794,390 109.0% BLAINE 23,548,979 733,266 24,282,245 23,473,328 (2,058) 23,471,270 -3.3% 21,518,574 109.1% CLARA CITY 285,000 412,295 697,295 355,000 374,794 729,794 4.7% 665,982 109.6% PELICAN RAPIDS 365,483 803,438 1,168,921 45,086 1,167,426 1,212,512 3.7% 1,104,551 109.8% SCANLON 611,120 896 612,016 544,003 (14,375) 529,628 -13.5% 479,986 11 0.3% COOK 174,170 241,182 415,352 182,856 352,471 535,327 28.9% 482,200 111.0% LONG LAKE 122,962 1,025,634 1,148,596 121,142 1,206,349 1,327,491 15.6% 1,194,290 111.2% ROSEMOUNT 3,608,285 1,097,096 4,705,381 5,059,304 1,903,223 6,962,527 48.0% 6,244,188 111.5% ELMORE 378,169 -- 378,169 399,752 -- 399,752 5.7% 358,304 111.6% CURRIE 82,791 - 82,791 115,957 --- 115,957 40.1% 103,818 111.7% MADELlA 1,500,200 260,542 1,760,742 1,500,200 89,994 1,590,194 -9.7% 1,416,903 112.2% JASPER -- 384,390 384,390 -- 354,115 354,115 -7.9% 314,652 112.5% EMlLY --- 475,451 475,451 -- 545,660 545,660 14.8% 484,090 112.7% CLEAR LAKE 256,270 141,646 397,916 242,391 42,498 284,889 -28.4% 252,664 112.8% IRONTON 153,460 299,189 452,649 154,388 232,392 386,780 -14.6% 340,475 113.6% N BRAHAM 544,338 85,197 629,535 536,431 254,733 791,164 25.7% 696,040 113.7% """ ...... STORDEN 16,117 286,559 302,676 -- 240,418 240,418 -20.6% 210,077 114.4% ALBANY 26,570 355,320 381,890 --- 791,434 791,434 107.2% 685,880 115.4% MILTONA --- 59,789 59,789 --- 91,958 91,958 53.8% 79,307 116.0% BLACKDUCK --- 617,474 617,474 --- 628,308 628,308 1.8% 541,796 116.0% COLD SPRING 673,888 848,341 1,522,229 743,305 825,007 1,568,312 3.0% 1,348,115 116.3% EASTON - 86,087 86,087 --- 134,779 134,779 56.6% 115,821 116.4% MILACA 412,489 860,368 1,272,857 493,712 766,728 1,260,440 -1.0% 1,079,264 116.8% CROMWELL 25,111 196,039 221,150 25,255 218,084 243,339 10.0% 207,623 117.2% DEEPHAVEN 2,302,200 - 2,302,200 2,203,476 --- 2,203,476 -4.3% 1,879,831 117.2% LAKE ELMO 1,779,944 -- 1,779,944 1,779,944 421,139 2,201,083 23.7% 1,866,773 117.9% BREEZY POINT -- 830,690 830,690 --- 1,094,603 1,094,603 31.8% 926,416 118.2% JEFFERS 194,280 7,686 20 I ,966 136,881 75,787 212,668 5.3% 179,684 118.4% WABASSO 210,000 354,707 564,707 210,000 306,272 516,272 -8.6% 435,786 118.5% GRAND MEADOW 535,133 163,004 698,137 424,712 131,918 556,630 -20.3% 465,164 119.7% KETILE RIVER --- 145,107 145,107 --- 162,949 162,949 12.3% 135,909 119.9% MAPLE PLAIN 1,353,463 45,410 1,398,873 1,383,443 43,518 1,426,961 2.0% 1,183,094 120.6% STEWART 67,461 411,055 478,516 445,778 --- 445,778 -6.8% 369,117 120.8% OTSEGO --- 2,233,862 2,233,862 1,900,217 473,384 2,373,601 6.3% 1,965,165 120.8% BLOMKEST --- 88,510 88,510 - 82,408 82,408 -6.9% 67,348 122.4% LAKE BENTON -- 257,368 257,368 -- 385,792 385,792 49.9% 313,593 123.0% DELANO - 1,928,866 1,928,866 -- 2,326,496 2,326,496 20.6% 1,883,920 123.5% REVERE 20,000 56,209 76,209 20,000 47,675 67,675 -11.2% 54,599 123.9% FROST - 218,724 218,724 201,239 -- 201,239 -8.0% 162,023 124.2% MANTORVILLE 12,236 560,553 572,789 12,236 459,876 472,112 -17.6% 378,897 124.6% RUTHTON --- 214,709 214,709 -- 212,022 212,022 -1.3% 170,145 124.6% TABLE 26 PERCENT CHANGE OF UNRESERVED FUND BALANCES IN THE GENERAL FUND AND SPECIAL REVENUE FUNDS 2001 TO 2002 2002 UNRESERVED FUND BALANCES AS A PERCENT OF TOTAL CURRENT EXPENDITURES BY PERCENTAGE 2002 Unreserved as December 31, 2001 December 31, 2002 200112002 2002 a Percent of Unreserved Unreserved Total Unreserved Unreserved Total Percent Total Current Total Current Name of City Designated Un designated Unreserved Designated Undesignated Unreserved Change Expenditures Expenditures ADAMS 145,727 324,556 470,283 180,098 261,235 441,333 -6.2% 351,683 125.5% CLEARWATER 547,089 --- 547,089 628,839 --- 628,839 14.9% 499,927 125.8% WATERTOWN 665, I 08 611,570 1,276,678 -- 1,553,961 1,553,96] 21.7% 1,234,113 125.9% GRAND MARAIS 690,922 1,154,993 1,845,915 709,663 1,379,936 2,089,599 13.2% 1,657,583 126.1% INTERNATIONAL FALLS --- 7,440,504 7,440,504 -- 7,423,936 7,423,936 -0.2% 5,887,203 126.1% BARNUM 303,828 49,682 353,510 287,962 48,772 336,734 -4.7% 265,523 126.8% ISANTI 984,975 44,722 1,029,697 1,142,483 334,537 1,477,020 43.4% 1,159,627 127.4% VERNON CENTER 256,425 858 257,283 256,762 2,529 259,291 0.8% 200,367 129.4% ROCKVILLE --- --- --- 347,768 351,685 699,453 536,501 130.4% JACKSON 1,430,531 1,388,010 2,818,541 1,463,679 1,556,429 3,020,108 7.2% 2,304,452 131.1% GREENFIELD 793,042 (26,813) 766,229 989,380 127,399 1,116,779 45.8% 845,204 132.1% OSLO --- 336,285 336,285 --- 342,411 342,411 1.8% 259,021 132.2% RANSKA ]57,110 154,079 311,189 169,110 131,562 300,672 -3.4% 227,008 132.4% CRA TFIELD --. ],425,723 1,425,723 -- 1,714,201 1,714,201 20.2% 1,281,847 133.7% MILROY 50,000 130,426 180,426 121,137 100,505 221,642 22.8% 164,991 134.3% GLENWOOD 2,015,587 .-- 2,015,587 2,141,072 --- 2,141,072 6.2% 1,590,467 134.6% BROWNTON 21,626 559,584 581,210 28,587 601,810 630,397 8.5% 468,098 134.7% tv FOUNTAIN 86,500 145,280 231,780 45,000 188,853 233,853 0.9% 173,370 134.9% .p.. tv CLARKFIELD 289,921 241,253 531,]74 287,283 358,753 646,036 21.6% 476,300 135.6% WALKER 436,786 577,456 1,014,242 637,734 659,394 1,297,128 27.9% 949,871 136.6% FINLAYSON -- 52,728 52,728 - 152,405 152,405 189.0% 111,591 136.6% WINNEBAGO 144,693 853,281 997,974 88,972 1,069,253 1,158,225 16.1% 846,995 136.7% AITKIN -- 1,741,266 1,741,266 -- 1,469,714 ],469,714 -15.6% 1,073,406 136.9% VESTA 161,279 13,920 175,199 161,279 33,218 194,497 11.0% 140,614 138.3% DALTON - - -- 1,490 105,012 106,502 76,633 139.0% lYLER -- 1,082,670 1,082,670 --- 705,725 705,725 -34.8% 507,792 139.0% ST. BONIFACIUS -. 1,345,702 1,345,702 --- 1,467,271 1,467,271 9.0% 1,052,489 139.4% HERMANTOWN 3,084,091 147,425 3,231,516 3,798,701 16,321 3,815,022 18.1% 2,703,731 141.1% PIPESTONE 3,053,802 317,227 3,371,029 2,851,472 380,643 3,232,115 -4.1% 2,281,920 141.6% CLARJSSA 12,623 188,370 200,993 17,213 298,647 315,860 57.1% 221,849 142.4% MOUNTAIN LAKE 596,346 903,293 1,499,639 629,004 1,040,585 1,669,589 11.3% 1,161,410 143.8% NORWOOD YOUNG AMERJCA 1,259,656 367,797 1,627,453 1,193,094 375,912 1,569,006 -3.6% 1,086,397 144.4% WAITE PARK 4,108,637 283,584 4,392,221 2,796,099 1,644,537 4,440,636 1.1% 3,059,842 145.1% HENNING 31,194 770,775 80 I ,969 37,686 711,757 749,443 -6.5% 506,556 147.9% VIRGINIA 6,793,830 10,009,681 16,803,511 8,648,830 7,919,354 16,568,184 .1.4% 11,130,562 148.9% MILAN -- 343,225 343,225 - 219,760 219,760 -36.0% 147,091 149.4% ORONOCO 237,370 141,829 379,199 303,]99 77,748 380,947 0.5% 254,893 149.5% CARLTON 548,095 161,809 709,904 312,974 205,972 518,946 -26.9% 346,311 149.8% HOLDINGFORD 47,384 313,369 360,753 48,929 367,500 416,429 ]5.4% 277,839 149.9% MAPLE LAKE - 677,297 677,297 204,625 1,067,736 1,272,361 87.9% 848,359 150.0% Extremely High Fund Balance MELROSE 3,322,150 (254,065) 3,068,085 3,085,182 (971,412) 2,113,770 -31.1% 1,399,614 151.0% TABLE 26 PERCENT CHANGE OF UNRESERVED FUND BALANCES IN THE GENERAL FUND AND SPECIAL REVENUE FUNDS 2001 TO 2002 2002 UNRESERVED FUND BALANCES AS A PERCENT OF TOTAL CURRENT EXPENDITURES BY PERCENTAGE 2002 Unreserved as December 31,2001 December 31, 2002 2001/2002 2002 a Percent of Unreserved Unreserved Total Unreserved Unreserved Total Percent Total Current Total Current Name of City Designated Undesignated Unreserved Designated Undesignated Unreserved Change Expenditnres Expenditures LA SALLE 33,265 -- 33,265 44,834 --- 44,834 34.8% 29,372 152.6% CRYSTAL 4,132,873 8,145,068 12,277,941 5,274,056 8,055,331 13,329,387 8.6% 8,723,830 152.8% TRIMONT 629,116 --- 629,116 566,638 --- 566,638 -9.9% 365,575 155.0% GARVIN --- 89,727 89,727 --- 111,983 111,983 24.8% 71,836 155.9% ROUND LAKE 282,683 - 282,683 311,803 --- 311,803 10.3% 199,471 156.3% KENNEDY 12,277 212,692 224,969 16,531 230,555 247,086 9.8% ]57,790 ] 56.6% MORGAN 955,738 326,885 1,282,623 600,000 344,191 944,191 -26.4% 599,130 157.6% DENNISON - 82,097 82,097 -- 91,365 91,365 11.3% 57,707 158.3% WILMONT 208,735 (4,486) 204,249 214,639 -- 214,639 5.1% 135,356 158.6% MAPLETON 424,246 408,427 832,673 421,052 471,813 892,865 7.2% 558,582 ]59.8% RUSSELL 30,741 237,244 267,985 54,400 236,801 291,201 8.7% 181,779 160.2% LEROY -- 276,756 276,756 --- 551,855 551,855 99.4% 343,411 160.7% HILLTOP - 573,200 573,200 -- 729,323 729,323 27.2% 452,958 161.0% ARCO m 42,594 42,594 --- 54,425 54,425 27.8% 33,245 163.7% NISSW A --- 1,466,458 1,466,458 --- 2,021,717 2,021,717 37.9% 1,233,571 163.9% LAKE SHORE -- 824,397 824,397 --- 898,646 898,646 9.0% 546,886 164.3% VERNDALE 14,122 354,340 368,462 277,861 128,755 406,616 10.4% 246,810 164.7% N MAZEPPA 234,474 356,542 591,016 176,914 325,849 502,763 -14.9% 303,935 165.4% ~ IoN MORTON 380,000 130,405 510,405 380,000 154,627 534,627 4.7% 320,203 167.0% COURTLAND 163,362 68,807 232,169 123,370 98,870 222,240 4.3% 128.505 172.9% ANNANDALE 1,138,342 (l,069) 1,137,273 1,726,287 80,607 1,806,894 58.9% 1,044,613 173.0% LAMBERTON 125,000 330,169 455,169 443,566 330,829 774,395 70.1% 443,388 174.7% ST. PAUL PARK 990,804 1,123,323 2,114,127 1,566,470 1,725,958 3,292,428 55.7% 1,880,407 175.1% DODGE CENTER 1,600,000 308,963 1,908,963 1,600,000 466,766 2,066,766 8.3% 1,143,220 180.8% BETHEL 36,525 291,922 328,447 36,660 351,135 387,795 18.1% 212,873 182.2% EAST GULL LAKE -- 334,955 334,955 --- 402,059 402,059 20.0% 218,417 184.1% RUSH CITY -- 1,398,203 1,398,203 -- 1,529,179 1,529,179 9.4% 812,198 188.3% RAMSEY 3,008,557 9,046,903 12,055,460 4,212,077 9,233,193 13,445,270 11.5% 7,059,798 190.4% SHAFER - -- -- 188,506 120,993 309,499 162,044 191.0% OSSEO 1,519,068 389,208 1,908,276 1,639,266 463,641 2,102,907 10.2% 1,091,512 192.7% DEERWOOD 620,493 226,382 846,875 554,943 342,749 897,692 6.0% 465,379 192.9% MC GREGOR m 710,149 710,149 --- 795,477 795,477 12.0% 406,783 195.6% DUMONT --- --- -- 9,710 125,895 135,605 69,325 195.6% LAFAYEITE 200,000 186,799 386,799 200,000 216,827 416,827 7.8% 212,490 196.2% FREEPORT 448,953 (13,828) 435,125 548,537 19,673 568,210 30.6% 289,223 196.5% SKYLINE -- 82,700 82,700 --- 83,171 83,171 0.6% 42,285 196.7% ATWATER 215,000 955,623 1,170,623 215,000 779,362 994,362 -15.1% 505,070 196.9% WACONIA 94,806 5,864,427 5,959,233 1,442,462 6,030,287 7,472,749 25.4% 3,760,244 198.7% SACRED HEART -- 604,035 604,035 -- 635,042 635,042 5.1% 313,166 202.8% DUNNELL 8,881 127,695 136,576 7,412 178,706 186,118 36.3% 91,736 202.9% SANDSTONE -- 1,007,088 1,007,088 --- 1,346,712 1,346,712 33.7% 661,277 203.7% GOOD THUNDER 182,401 438,340 620,741 204,940 454,053 658,993 6.2% 322,631 204.3% ASKOV 23,912 180,578 204,490 24,928 243,125 268,053 31.1% 131,026 204.6% TABLE 26 PERCENT CHANGE OF UNRESERVED FUND BALANCES IN THE GENERAL FUND AND SPECIAL REVENUE FUNDS 2001 TO 2002 2002 UNRESERVED FUND BALANCES AS A PERCENT OF TOTAL CURRENT EXPENDITURES BY PERCENTAGE 2002 Unreserved as December 31, 2001 December 31, 2002 200112002 2002 a Percent of Unreserved Unreserved Total Unreserved Unreserved Total Percent Total Current Total Current Name of City Designated Undeslgnated Unreserved Designated Undesignated Unreserved Change Expenditures Expenditures BAYPORT 1,601,504 1,443,908 3,045,412 1,301,333 2,544,533 3,845,866 26.3% 1,877,006 204.9% PA YNESVlLLE 874,198 1,208,987 2,083,185 1,019,411 1,286,538 2,305,949 10.7% 1,117,945 206.3% COHASSET ... 1,519,283 1,519,283 --- 1,789,455 1,789,455 17.8% 867,156 206.4% LEWISVlLLE -- 89,114 89,114 --- 163,006 /63,006 82.9% 78,442 207.8% W ABASHA ... 3,543,162 3,543,162 3,498,233 /10,158 3,608,391 1.8% 1,734,956 208.0% W1LLERNIE 194,527 191,925 386,452 /2,000 407,713 419,713 8.6% 198,619 211.3% STAPLES 625,000 1,644,468 2,269,468 625,000 1,820,804 2,445,804 7.8% 1,152,368 212.2% WINTHROP 1,241,576 687,762 1,929,338 1,424,935 606,437 2,031,372 5.3% 941,354 215.8% W1LLMAR 18,098,503 ... 18,098,503 19,443,713 ... 19,443,713 7.4% 8,967,291 216.8% ECHO -- 318,669 318,669 --- 351,233 351,233 10.2% 161,013 218.1% SHERBURN 449,013 475,433 924,446 459,513 600,847 1,060,360 14.7% 481,798 220.1% DANUBE 400,000 187,726 587,726 400,000 148,003 548,003 -6.8% 248,208 220.8% BRlCEL YN 338,943 -- 338,943 388,295 ... 388,295 14.6% 172,718 224.8% MONTICELLO 2,487,282 7,755,360 10,242,642 2,806,788 10,367,056 13,173,844 28.6% 5,778,075 228.0% WESTBROOK 288,931 705,352 994,283 288,717 698,265 986,982 -0.7% 413,853 238.5% FRANKLIN 290,000 252,549 542,549 320,000 292,359 612,359 12.9% 253,574 241.5% CHANDLER 192,103 ... 192,103 261,890 -- 261,890 36.3% 107,536 243.5% tv OAK. GROVE 2,638,587 1,012,597 3,651,184 2,857,905 1,169,188 4,027,093 10.3% 1,617,697 248.9% .p.. .p.. EDGERTON --- 798,092 798,092 --- 901,996 901,996 13.0% 361,487 249.5% EAGLE BEND 3/6,075 285,706 601,781 415,563 217,612 633,175 5.2% 241,314 262.4% LAKEFlELD 1,375,000 1,153,648 2,528,648 1,400,000 645,345 2,045,345 -19.1% 779,026 262.6% ROLLINGSTONE 224,718 117,094 341,812 292,952 88,244 381,196 11.5% 144,776 263.3% WRENSHALL 92,777 141,787 234,564 106,235 158,161 264,396 12.7% 97,003 272.6% HILLS 150,000 270,877 420,877 150,000 319,272 469,272 11.5% 169,936 276.1% UPSALA 35,285 288,883 324,168 223,849 231,452 455,30 I 40.5% 163,995 277.6% PALISADE 17,360 92,782 110,142 20,580 ] 75,550 196,130 78.1% 68,158 287.8% PENNOCK -- 211,573 211 ,573 --- 377,555 377,555 78.5% 130,946 288.3% BERTHA 21,517 657,294 678,811 21,517 525,324 546,841 -19.4% 187,823 291.1% STOCKTON 186,487 96,864 283,351 206,345 186,094 392,439 38.5% 130,491 300.7% NORTHOME -- 376,108 376,108 -- 441,268 441,268 17.3% 144,014 306.4% AMBOY 525,652 50,596 576,248 604,778 4,960 609,738 5.8% 195,168 312.4% DARFUR 60,073 164,496 224,569 60,073 11 6,223 176,296 -21.5% 56,104 314.2% ORMSBY ... 108,213 108,213 14,554 11 6,866 131,420 21.4% 40,827 32 1.9% BUTIERFIELD 126,611 340,653 467,264 100,173 454,116 554,289 18.6% 170,537 325.0% BALATON 261,313 664,653 925,966 282,518 860,790 1,143,308 23.5% 346,474 330.0% HADLEY -- 44,068 44,068 ... 57,753 57,753 31.1% 16,164 357.3% CLIMAX -- 196,558 196,558 --- 260,452 260,452 32.5% 72,097 361.3% GRANADA 185,870 139,055 324,925 160,384 137,353 297,737 -8.4% 80,425 370.2% UTICA - --- --- .-- 141,961 141,961 37,631 377.2% KARLSTAD --- 1,304,776 1,304,776 --- 1,304,942 1,304,942 0.0% 335,100 389.4% SANBORN 205,000 362,658 567,658 205,000 337,117 542,117 -4.5% 139,130 389.6% LAKE WILSON 508,486 --- 508,486 474,285 ... 474,285 -6.7% 112,695 420.9% WALTHAM ... --- m -- 180,964 ] 80,964 32,938 549.4%