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Receive 1986 Audit ReportCITY OF ROSEMOUNT ROSEMOUNT, MINNESOTA ANNUAL FINANCIAL REPORT For the Year Ended December 31, 1986 CITY OF ROSEMOUNT TABLE OF CONTENTS PAGES) 1 2-3 4-5 6 7 8 9-26 27 28 29-30 31-32 33 34 35-36 37-38 EXHIBIT CITY OFFICIALS AUDITORS' REPORT GENERAL PURPOSE FINANCIAL STATEMENTS COMBINED BALANCE SHEET - All Fund Types A-1, and Account Groups A-2 COMBINED STATEMENT OF REVENUE, EXPENDITURES AND CHANGES IN FUND BALANCE B COMBINED STATEMENT OF REVENUE, EXPENSES AND CHANGES IN FUND EQUITY - Enterprise Funds C COMBINED STATEMENT OF CHANGES IN FINANCIAL POSITION - Enterprise Funds D NOTES TO THE FINANCIAL STATEMENTS COMBINING AND INDIVIDUAL FUND STATEMENTS GENERAL FUND Comparative Balance Sheets E Comparative Statements of Revenue, Expenditures and Changes in Fund Balance F SPECIAL REVENUE FUNDS Comparative Balance Sheet G-1, G-2 Combining Statement of Revenue, Expenditures and Changes in Fund Balances H-1, H-2 DEBT SERVICE FUNDS Combining Balance Sheet I Combining Statement of Revenue, Expenditures and Changes in Fund Balances J CAPITAL PROJECT FUNDS Combining Balance Sheet K-1, K-2 Combining Statement of Revenue, Expenditures and Changes in Fund Balances L-1, L-2 PAGES) 1 2-3 4-5 6 7 8 9-26 27 28 29-30 31-32 33 34 35-36 37-38 CITY OF ROSEMOUNT TABLE OF CONTENTS (Continued) EXHIBIT SPECIAL ASSESSMENT FUNDS Combining Balance Sheet Combining Statement of Revenue, Expenditures and Changes in Fund Balances ENTERPRISE FUNDS Combining Balance Sheet Combining Statement of Revenue, Expenses and Changes in Fund Equity Combining Statement of Changes in Financial Position Utility Commission Fund Comparative Balance Sheet Comparative Statement of Income and Retained Earnings Comparative Statement of Changes in Financial Position SUPPLEMENTARY INFORMATION GENERAL FUND Schedule of Revenue Schedule of Expenditures — Budgeted and Actual SCHEDULE OF BONDED INDEBTEDNESS SCHEDULE OF SOURCES AND USES OF PUBLIC FUNDS AUDITORS' REPORT ON FEDERAL REVENUE SHARING AUDITORS' REPORT ON INTERNAL CONTROL AUDITORS' REPORT ON COMPLIANCE SUPPLEMENTARY AUDITORS' COMMENTS ON INTERNAL CONTROL AND COMPLIANCE M N 0-1, O-2 P 4 R S T SCHEDULE 1 2-1, 2-2, 2-3 3 4 PAGES) 39 40 41-42 43 44 45 46 47 PAGE (S) 48 49-51 52 53 54-55 56-57 58 59 CITY OF ROSEMOUNT CITY OFFICIALS -------------- December 31, 1986 Leland S. Knutson Mayor Stephan Jilk City Administrator Don F. Darling Treasurer Vernon Napper Councilman Michael Willard Councilman Thomas Tucker Councilman Joseph Walsh Councilman UTILITY COMMISSION Joseph Walsh President Wesley Hasbrouck Member Dale Westin Member -1- BD HBNBV&M4YEJ? C E R T I F I E D P U B L I C A C C O U N T A N T S The Honorable Mayor and City Council City of Rosemount Rosemount, Minnesota We have examined the combined financial statements of the City of Rosemount and the combining, individual fund and account group financial statements of the City as of and for the year ended December 31, 1986 as listed in the Table of Contents. Our exami- nation was made in accordance with generally accepted suditing standards and, accordingly, included such tests of the accounting records and such other auditing procedures as we considered necessary in the circumstances. The City has not maintained accurate, detailed accounting records of its general fixed assets; therefore, we did not examine the statement of general fixed assets and accordingly we express no opinion on such statements. In addition the City did not prepare or adopt a budget for revenue in the General Fund and it did not prepare or adopt annual budgets for its special revenue funds. Accordingly, these statements do not include a combined statement of revenue, expenditures and changes in fund balance - budget and actual - for the general and special revenue fund types as required by generally accepted accounting principles. In our opinion, except for the items mentioned in the preceding paragraph, the combined financial statements referred to above present fairly the financial position of the City of Rosemount at December 31, 1986 and the results of its operations and the changes in financial position of its proprietary fund types for the year then ended, in conformity with generally accepted accounting principles applied on a basis consistent with that of the preceding year. Also, in our opinion, except for the items mentioned in the preceding paragraph, the combining, individual fund and account group financial statements referred to above present fairly the financial position of the individual funds and account groups of the City of Rosemount at December 31, 1986 and the results of operations of such funds and the changes in'finan- cial position of individual proprietary funds for the year then ended, in conformity with generally accepted accounting princi- ples. 1 The Honorable Mayor and City .Council City of Rosemount ' Page Two Our examination was made for the purpose of forming an opinion on the combined financial statements taken as a whole and on the combining, individual fund and account group financial state- ments. The accompanying supplementary information appearing on pages 49 through 54 is presented for purposes of additional ' analysis and is not a required part of the combined financial statements of the City of Rosemount. The information has been subjected to the auditing procedures applied in the examination of the combined, combining, individual fund and account group financial statements and, in our opinion, is fairly stated in all material respects in relation to the combined financial state- .� ments taken as a whole. LnBOECKERMANN, HEINEN & MAYER Certified Public Accountants ' Minneapolis, Minnesota February 24, 1987 GENERAL PURPOSE FINANCIAL STATEMENTS rr �r �r r� rr r r r rr ■r rr rr �r r r� r� rr r r EXHIBIT A-1 CITY OF ROSEMOUNT COMBINED BALANCE SHEET ALL FUND TYPES AND ACCOUNT GROUPS December 31, 1986 See Accompanying Notes to the Financial Statements -4- Governmental Proprietary Account Groups General Totals Fixed General (Memorandum Only) Special Debt Capital Special Assets Long -Term General Revenue Service Projects Assessments Enterprise (Unaudited) Debt 1986 1985 ASSETS Cash $ - $ 160,213 $ 130,375 $ 1,206,059 $ 30,642 $ (2,480) $ - $ - $ 1,524,809 $ 892,055 Investments 1,255,000 1,360,000 870,000 150,000 755,363 475,182 - - - 4,865,545 4,252,907 Accounts Receivable 2,077 - - - - 72,217 - - 74,294 107,778 Due from Other Governments - - - - - - - - - 26,664 Special Assessments Receivable - Current 23,162 - 4,638 154,198 261,127 1,339 - - 444,464 182,056 - Deferred 89,867 - 44,841 - 26,739 8,648 - - 170,095 - Taxes Receivable -Current 88,426 15,114 1,694 - - - - - 105,234 8,744 Taxes Receivable -Delinquent 29,441 - - - - - - - 29,441 13,219 Inventories - - - - - - - - - 46,865 Prepaid Expenses 77,839 - - - - 20,075 - - 97,914 63,850 Fixed Assets - - - - - 2,706,805 5,367,413 - 8,074,218 7,140,107 Accumulated Depreciation P - - - - - (584,824) - _ (584,824) (612,853) Amount Available in Debt Service Funds - - - - - - _ 1,024,417 1,024,417 975,625 Amount to be Provided for Debt Retirement - - - - - - - 3,404,085 3,404,085 173,242 TOTAL ASSETS $ 1,565,812 $ 1,535,327 $ 1,051,548 $ 1,510,257 $ 1,073,871 $ 2,696,962 $ 5,367,413 $ 4,428,502 $19,229,692 13,270,259 See Accompanying Notes to the Financial Statements -4- EXHIBIT A-2 CITY OF ROSEMOUNT COMBINED BALANCE SHEET ALL FUND TYPES AND ACCOUNT GROUPS December 31, 1986 See Accompanying Notes to the Financial Statements -5- Governmental Proprietary Account Groups General Totals Fixed General (Memorandum Only) Special Debt Capital Special Assets Long -Term General Revenue Service Projects Assessments Enterprise (Unaudited) Debt 1986 1985 LIABILITIES AND FUND EQUITY LIABILITIES Accounts Payable $ 69,321 $ 22,117 $ - $ 92,557 $ - $ 39,837 $ - $ - $ 223,832 $ 116,813 Compensated Absences Payable - - - - - 13,971 - 93,502 107,473 130,574 Bonds Payable - - - - 1,040,000 325,000 - 4,335,000 5,700,000 2,995,000 Accrued Expenses - - - - - - - - - 43,015 Accrued Interest - - - - - 3,735 - - 3,735 5,437 Customer Meter Deposits - - - - - 19,762 - - 19,762 21,123 Cash Overdraft 64,958 - - 284,474 68,663 - - - 418,095 148,617 Contracts Payable - - - 551,874 - - - - 551,874 6,607 Deferred Revenue 119,308 - 44,841 154,198 260,382 8,648 - - 587,377 16,309 TOTAL LIABILITIES $ 253,587 $ 22,117 $ 44,841 $ 1,083,103 S 1,369,045 $ 410,953 $ - $ 4,428,502 $ 7,612,148 $ 3,483,495 FUND EQUITY (DEFICIT) Retained Earnings $ - $ - $ - $ - $ - $ 2,286,009 $ - $ - $ 2,286,009 $ 3,366,996 Investment in General Fixed Assets - - - - - - 5,367,413 - 5,367,413 4,071,147 Fund Balance - Reserved 77,839 - 1,006,707 427,154 - - - - 1,511,700 1,210,035 Unreserved 1,234,386 1,513,210 - - (295,174) - - - 2,452,422 1,138,586 TOTAL FUND EQUITY $ 1,312,225 $ 1,513,210 $ 1,006,707 $ 427,154 $ (295,174) $ 2,286,009 $ 5,367,413 $ - $11,617,544 $ 9,786,764 TOTAL LIABILITIES AND FUND EQUITY $ 1,565,812 $ 1,535,327 $ 1,051,548 $ 1,510,257 $ 1,073,871 $ 2,696,962 $ 5,367,413 $ 4,428,502 $19,229,692 13,270,259 See Accompanying Notes to the Financial Statements -5- COMBINED STATEMENT OF REVENUE, EXPENDITURES AND CHANGES IN FUND BALANCE ALL GOVERNMENTAL FUND TYPES For the Year Ended December 31, 1986 REVENUE General Property Taxes Licenses and Permits Special Assessments Intergovernmental Charge for Services Fines and Forfeitures Interest Other Bond Proceeds TOTAL REVENUE EXPENDITURES General Government Public Safety Streets and Highways Parks and Recreation Refunds and Reimbursements Other Debt Service - Principal Retirement Interest on Bonds Fiscal Agent Fee TOTAL EXPENDITURES EXCESS REVENUE OVER (UNDER) EXPENDITURES BEFORE OTHER SOURCES (USES) OTHER SOURCES (USES) Transfer from Other Funds Transfer to Other Funds NET OTHER SOURCES (USES) EXCESS REVENUE AND OTHER SOURCES OVER (UNDER) EXPENDITURES AND OTHER USES FUND BALANCE FUND BALANCE, December 31 EXHIBIT B Special Debt Capital Special Total General Revenue Service Projects Assessment (Memorandum Only) Funds Funds Funds Funds Funds 1986 1985 $ 842,977 $ 181,535 $ 16,870 $ - $ 160 $ 1,041,542 $ 641,044 74,430 - - - - 74,430 69,795 41,985 - 8,079 - 102,305 152,369 340,900 782,031 149,369 3,443 - - 934,843 835,335 153,110 - - - - 153,110 215,161 25,096 - - - - 25,096 21,216 78,539 63,113 127,964 11,810 62,670 344,096 144,245 331,506 150,833 8,711 - - 491,050 358,257 3,398,396 - 3,398,396 2,329,674 $ 544,850 $ 165,06 $ 3,4$ 3,4-10 $ 165,135 T 6, 14,932 $ ,� 772,86T $ 897,705 $ 147,086 $ - $ - $ - $ 1,044,791 $ 890,566 440,682 - - - - 440,682 446,257 363,925 - - - - 363,925 259,325 89,855 - - 3,081,633 - 3,171,488 413,265 - - - - - 213,096 490,749 93,386 6,818 88,186 9,321 688,460 40,895 - - 150,000 - 150,000 175,000 - - 66,085 - 102,159 168,244 175,895 886 - 696 1,582 658 $ 46,758 $ 304,378 $ (58,722) $ 240,387 $ 52,959 $ 585,760 $ 157,904 $ 316,227 $ 444,190 $ 124,994 $ 6,761 $ 32,677 $ 924,849 $ 671,303 (365,006) (173,773) (35,190) (6,761) - (580,730) (585,946) $ (48,779) $ 270,417 $ 89,804 $ - $ 32,677 $ 344,119 $ 85,357 $ (2,021) $ 574,795 $ 31,082 $ 240,387 $ 85,636 $ 929,879 $ 243,261 1,314,246 938,415 975,625 186,767 (380,810) 3,034,243 2,105,360 $ 1,312,225 $ 1,513,210 $ 1,006,707 $ 427,154 $ (295,174) $ 3,964,122 $ 2,348,621 See Accompanying Notes to the Financial Statements -6- CITY OF ROSEMOUNT PROPRIETARY FUNDS COMBINED STATEMENT OF REVENUE, EXPENSES AND CHANGES IN RETAINED EARNINGS --------------------------------------------------- For the Years Ended December 31, 1986 and 1985 SALES AND COST OF SALES Sales Cost of Sales Gross Profit OPERATING REVENUE Water Sales Sewer Customer Water Meter Maintenance Plumbing Permits Sewer Permits Miscellaneous Total Operating Revenue Total Gross Profit and Operating Revenue OPERATING EXPENSES Salaries and Wages Supplies Other Services Other Charges Metro Sewer Charge Depreciation Expense Total Operating Expenses Operating Income (Loss) NON-OPERATING REVENUE (EXPENSE) Sales Tax Commissions Interest on Investments Other Revenue Interest on Bonds Other Expense Loss on Sale Net Non -Operating Revenue INCOME BEFORE OPERATING TRANSFERS Operating Transfers In Operating Transfers Out NET INCOME RETAINED EARNINGS, January 1 RETAINED EARNINGS, December 31 EXHIBIT C Enterprise Funds Total 1986 1985 $ 258,135 $ 583,453 192,404 406,276 $ 65,731 $ 177,177 $ 142,826 142,938 6,742 4,241 12,769 $ 309,516 $ 375,247 $ 148,992 144,774 6,511 2,447 972 4,348 $ 308,044 $ 485,221 $ 114,142 $ 147,656 26,968 31,998 43,815 98,435 27,464 53,498 109,980 83,227 77,673 83,582 $ 400,042 $ 498,396 $ (24,795) $ (13,175) $ 1,024 $ - - 260 30,122 43,155 152 2,975 (16,182) (25,012) (653) (374) (41,014) - $ (26,551) $ 21,004 $ (51,346) $ 7,829 108,922 - (453,041) 36,165 $ (395,465) $ 43,994 2,681,474 2,637,480 $ 2,286,009 $ 2,681,474 See Accompanying Notes to the Financial Statements -7- CITY OF ROSEMOUNT COMBINED STATEMENT OF CHANGES IN FINANCIAL POSITION PROPRIETARY FUNDS --------------------------------------------------- For the Years Ended December 31, 1986 and 1985 SOURCES OF WORKING CAPITAL Operations Net Income (Loss) Before Transfers Items not Requiring Outlay of Working Capital Depreciation Loss on Sale Total Sources of Working Capital Sale of Liquor Store Transfers from Other Funds Total Working Capital Provided by All Sources USES OF WORKING CAPITAL Acquisition of Fixed Assets Retirement of Long -Term Debt Transfers to Other Funds Transfer of Funds to Special Revenue Total Uses of Working Capital INCREASE IN WORKING CAPITAL The Increase (Decrease) in Working Capital is Accounted for as Follows: Cash and Investments Due from Other Funds Accounts Receivable Assessments and Taxes Receivable Allowance for Delinquent Taxes Inventory Prepaid Expenses Deferred Revenue Accounts Payable Accrued Expenses Customer Meter Deposits Compensated Absences Payable INCREASE IN WORKING CAPITAL EXHIBIT D Enterprise Funds Total 1986 1985 $ (51,346) $ 7,829 77,673 83,582 41,014 $ 67,341 $ 91,411 $ 270,000 $ - 108,922 36,165 $ 446,263 $ 127,576 $ 54,561 $ 2,147 60,000 60,000 453,041 - 679,166 - $ 1,246,768 $ 62,147 $ (800,505) $ 65,429 (Decrease)Increase $ (768,144) $ 73,660 1,308 (2,294) 5,554 (284) - 4,717 (46,865) 3,648 3,868 2,846 (5,653) (2,995) (6,618) (21,387) 11,948 109 1,361 1,454 2,736 5,955 $ (800,505) $ 65,429 See Accompanying Notes to the Financial Statements -8- CITY OF_ROSEMOUNT NOTES -TO -THE -FINANCIAL -STATEMENTS December 31, 1986 NOTE 1 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Nature of Operations: The City of Rosemount provides a broad range of services to citizens, including general government, public safety, streets, sanitation and health, park facilities and social services. It also operates a liquor store, water, sewer and other sanitation utilities. The accounting policies of the City of Rosemount conform 1 to generally accepted accounting principles as applic- able to governments. The following is a summary of the more significant policies: A. Fund Accounting ' The accounts of the City are organized on a basis of funds and account groups, each of which is con- sidered a separate accounting entity.. The opera- tions of each fund are accounted for with a separ- ate set of self -balancing accounts that comprise its assets, liabilities, fund equity, revenue, and expenditures or expenses, as appropriate. Govern- ment resources are allocated to and accounted for in individual funds based upon the purposes for which they are to be spent and the means by which spending activities are controlled. The various funds are grouped, in the financial statements in this report, into six generic fund types and three broad fund categories as follows: ' GOVERNMENTAL FUNDS General Fund - The General Fund is the general operating fund of the City. It is used to account for all financial resources except those required to be accounted for in another fund. 1 Special Revenue Funds - Special Revenue Funds are used to account for the proceeds of specific revenue sources (other than special assessments, expendable trusts, or major capital projects) that are legally restricted to expenditures for speci- fied purposes. Debt Service Funds - Debt Service Funds are used to account for the accumulation of resources for, and the payment of, general long-term debt principal, interest and related costs. NOTE 1 CITY OF ROSEMOUNT NOTES TO THE FINANCIAL STATEMENTS (Continued) --------------------------------- December 31, 1986 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued) A. Fund Accounting (Continued) Capital Project Funds - Capital Project Funds are used to account for financial resources to be used for the acquisition or construction of major capi- tal facilities (other than those financed by Pro- prietary Funds and Special Assessment Funds). Special Assessment Funds — Special Assessment Funds are used to account for the financing of public improvements or services deemed to benefit the properties against which special assessments are levied. PROPRIETARY FUNDS Enterprise Funds — Enterprise Funds are used to account for operations (a) that are financed and operated in a manner similar to private business enterprises - where the intent of the governing body is that the costs (expenses, including depre- ciation) of providing goods or services to the general public on a continuing basis be financed or recovered primarily through user charges; or (b) where the governing body has decided that periodic determination of revenue earned, expenses incurred, and/or net income is appropriate for capital main- tenance, public policy, management control, i accountability, or other purposes. B. Basis of Accounting L Basis of accounting refers to when revenue and expenditures or expenses are recognized in the accounts and reported in the financial statements, regardless of the measurement focus applied. All governmental funds are accounted for using the modified accrual basis of accounting. Their reve- nues are recognized when they become measurable and available as net current assets. Taxpayer -assessed income and gross receipts are considered "measure - able" when in the hands of intermediary collecting governments and are recognized as revenue at that time. Anticipated refunds of such taxes are -10- CITY OF ROSEMOUNT NOTES TO THE FINANCIAL STATEMENTS (Continued) --------------------------------- December 31, 1986 NOTE 1 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued) B. Basis of Accounting (Continued) recorded as liabilities and reductions of revenue when they are measurable and their validity seems certain. Expenditures are generally recognized under the modified accrual basis of accounting when the related fund liability is incurred. Exceptions to this general rule include principal and interest on general long-term debt which is recognized -when due. All proprietary funds are accounted for using the accrual basis of accounting. Their revenue is recognized when it is earned, and their expenses are recognized when they are incurred. Unbilled Water and Sewer Fund utility service receivables are recorded at year-end. C. Investments Investments are stated at cost or amortized cost which approximates market. Investments at December 31, 1986 consist primarily of Certificates of Deposit. D. Inventory Inventory is valued at the lower of cost (first- in/first-out) or market. Inventory quantities are determined by physical count. E. Accumulated Unpaid Vacation, Sick Pay and Holiday Amounts Accumulated unpaid vacation, sick pay, and holiday amounts are accrued when earned in proprietary funds. Such amounts for governmental funds are accrued only to the extent that they are to be liquidated with expendable available resources. -11- CITY OF ROSEMOUNT NOTES TO THE FINANCIAL STATEMENTS (Continued) --------------------------------- December 31, 1986 NOTE 1 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued) E. Accumulated Unpaid Vacation, Sick Pay and Holiday Amounts (Continued) The long-term portion is reported as a liability in the General Long -Term Debt Account Group. At December 31, 1986, unrecorded General Fund liabili- ties included $35,782 vacation pay, $55,918 sick pay, and $1,802 comp time. F. Total Columns on Combined Statements Overview Total columns on the Combined Statements - Overview are captioned "Memorandum Only to indicate that they are presented only to facilitate financial analysis. Data in these columns do not present financial position, results of operations or chan- ges in financial position in conformity with gener- ally accepted accounting principles. Neither is such data comparable to a consolidation. Interfund eliminations have not been made in the aggregation of this data. G. Fixed Assets and Long -Term Liabilities The accounting and reporting of fixed assets and long-term liabilities associated with a fund are determined by its measurement focus. All govern- mental funds are accounted for on a spending or "financial flow" measurement, which means that only current assets and current liabilities are general- ly included on their balance sheets. Their report- ed fund balance is considered a measure of "avail- able spendable resources". Governmental fund oper- ating statements present increases and decreases in net current assets. Accordingly, they are said to present a summary of sources and uses of "available spendable resources" during a period. ' Fixed assets used in governmental fund type opera- tions are accounted for in the General Fixed Assets Account Group, rather than in the governmental funds. Public domain general fixed assets consist- ing of certain improvements other than buildings, including roads, curbs and gutters, streets, drain- age systems, and lighting systems are capitalized -12- CITY OF ROSEMOUNT NOTES TO THE FINANCIAL STATEMENTS (Continued) --------------------------------- ' December 31, 1986 NOTE 1 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued) G. Fixed Assets and Long -Term Liabilities (Continued) ■ along with other general fixed assets. No depreci- ation has been provided on general fixed assets. All fixed assets are valued athistorical cost or estimated historical cost if historical cost is unavailable. Donated fixed assets are valued at ' their estimated fair value on the date donated. Generally, assets with an individual cost of less than $100 are not capitalized. ' The fixed assets of the Liquor and Utilities Com- mission Funds are depreciated using the straight- line method over the estimated useful lives of the assets. The estimated useful lives are as follows: TYPE OF ASSET LIFE Building and Structures 40-50 years Furniture and Equipment 10 years Machinery 10 years Other Equipment 4-10 years Long-term liabilities expected to be financed from governmental funds are accounted for in the General Long -Term Debt Group, not in the governmental funds. The exceptions to this rule are, the special assessment bonds which are accounted for in the Special Assessment Funds, and the revenue bonds which are accounted for in the Utility Commission and Liquor Funds. The two account groups differ from "funds" in that they are not involved with measurement of results of operations. They are concerned only with the measurement of financial position. Because of their spending measurement focus, expenditure recognition for governmental fund types is limited to exclude amounts represented by non- current liabilities. Since they do not affect net current assets, such long-term accounts are not -13 ' NOTE 1 CITY OF ROSEMOUNT NOTES TO THE FINANCIAL STATEMENTS (Continued) --------------------------------- December 31, 1986 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued) G. Fixed Assets and Long -Term Liabilities (Continued) recognized as governmental type expenditures or fund liabilities. They are, instead, reported as liabilities in the General Long -Term Debt Account Group. All proprietary funds are accounted for on a cost of services or "capital maintenance" measurement focus. This means that all assets and all liabili- ties (whether current or non-current) associated ' with their activity are included on their balance sheets. Their reported fund equity (net total assets) is segregated into contributed capital and retained earnings components. Proprietary fund type operating statements present increases (reve- nues) and decreases (expenses) in net total assets. Depreciation of all exhaustible fixed assets used by proprietary funds is charged as an expense against their operations. Accumulated depreciation is reported on proprietary fund balance sheets. Depreciation has been provided over the estimated useful lives using the straight-line method. H. Property Tax The City Council annually adopts a tax levy and certifies it to the County for billing and collec- tion. The County is responsible for billing and collecting all property taxes for itself, the City, the local School District and other taxing authori- ties. These taxes are payable (by property owners) by May 15 and October 15 of each calendar year. These taxes are collected by the County and remit- ted to the City by approximately each subsequent July 15, and December 15. Additionally, delinquent collections are remitted to the City with each set- tlement. The City has no ability to enforce pay- ment of property taxes by property owners. The County possesses this authority. -14- CITY OF ROSEMOUNT NOTES TO THE FINANCIAL STATEMENTS (Continued) --------------------------------- December 31, 1986 NOTE 1 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued) H. Property Tax (Continued) Taxes payable on homestead property ( as def ined by State statutes) are partially reduced by a home- stead credit. This credit is paid to the City by the State in lieu of taxes levied against homestead property. The State remits this credit in six equal installments in July through December each year. The City recognizes property tax revenue when it becomes both measurable and available to finance expenditures of the current period. Delinquent taxes receivable are not recognized as revenue until collected. Delinquent taxes are offset by deferred revenue. I. Special Assessments Special assessments are levied against the bene- fited properties for the assessable costs of special assessment improvement projects in accor- dance with State statutes. The City usually adopts the assessment rolls when the individual projects are complete or substantially complete. The assessments are collectible over a term of years generally consistent with the term of years of the related bond issue. Collection of annual install- ments (including interest) is handled by the County in the same manner as property taxes. Property owners are allowed to prepay total future install- ments without interest or pre -payment penalties. The City recognizes special assessments as revenue only to the extent that individual installments are considered current assets. Once a special assessment roll is adopted, the amount attributed to each parcel is a lien upon that property until full payment is made or the amount is determined to be excessive by City Coun- cil or court action. If special assessments are delinquent for a State statute -determined number of -15- CITY OF ROSEMOUNT NOTES TO THE FINANCIAL STATEMENTS (Continued) --------------------------------- ' December 31, 1986 INOTE 1 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued) I. Special Assessments (Continued) ■ years, the property is subject to tax -forfeit sale and the first proceeds of that sale (after cost, ' penalties, and expenses of sale) are remitted to the City in payment of delinquent special assess- ments. Generally, the City will collect the full amount of its special assessments if not adjusted ' by City Council or Court Action. Accordingly, no allowance for potentially uncollectible assessments has been provided. J. Budgets Financial control of spending for various govern- mental activities is exercised through the use of budgetary procedures. Exclusive authority over all budget matters remains with the Council. The Coun- cil adopts all budgets and any amendments to these budgets also require specific approval by the Coun- cil. Departmental budgets may not exceed amounts 1 set by the Council. Budgetary reporting is includ- ed in this report in the General Fund only. Formal annual budgets are not adopted for Special Revenue, Capital Project, Special Assessment or Debt Service ■ Service funds. Effective budgetary control is alternatively achieved in these funds by Council approval of individual projects and expenditures. Because budget information is not available for the General Fund revenues or Special Revenue funds, this report does not include a combined statement ' of revenue, expenditures, and changes in fund balances - budgeted and actual, for the General Fund or the Special Revenue funds as required by generally accepted accounting policies. This report also does not include a combined statement of revenue, expenditures and changes in fund ' balance budget and actual - General and Special Revenue funds as required by generally accepted accounting principles. ' Budget amounts are as originally adopted or as amended by the City Council. Appropriations which are not encumbered at year-end lapse. ■ ' -16- 1 NOTE 1 CITY OF ROSEMOUNT NOTES TO THE FINANCIAL STATEMENTS (Continued) --------------------------------- December 31, 1986. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued) K. Local Government Aid Local Government Aid is provided to the City by the State_ as a shared tax based upon a statutory for- mula and without spending restrictions. Payment from the State is generally received during each calendar year for that calendar year. The City recognizes Local Government Aid revenue when it becomes both measurable and available to finance current operations. L. Grants The City receives various Federal, State and other grants, the purpose of which is to fund specific City expenditures. The City also receives Federal Revenue Sharing and other general purpose grants. These grants are recognized as revenue in the period to which the grant applies. M. Restricted Assets Funds set aside for payment of enterprise fund revenue bonds and capital improvements are classi- fied. as restricted assets since their use is limi- ted by bond indentures and council action. N. Comparative Data ' Comparative totals for the prior year have been presented in the accompanying financial statements in order to provide an understanding of changes in the City's financial position and operations. How- ever, comparative (i.e., presentation of prior year totals by individual funds) data have not been pre- sented in each of the statements except the Enter- prise Funds, since their inclusion would make the statements unduly complex and difficult to read. -17- CITY OF ROSEMOUNT NOTES TO THE FINANCIAL STATEMENTS (Continued) --------------------------------- December 31, 1986 NOTE 1 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued) 0. Reporting Entity The financial statements of the City of Rosemount include those organizations that are controlled by or dependent on the City. Control or dependence is determined on the basis of budget adoption, taxing authority, funding and appointment of the respec- tive governing board. The following entities are not included because they are autonomous governments: Rosemount Firemen's Relief Association Dakota County Rosemount Independent School District NOTE 2 CHANGES IN GENERAL FIXED ASSETS A summary of changes in General Fixed Assets follows: Balance Balance January 1, Additions December 31, 1986 (Deletions) 1986 Land $ 680,083 $ (65,000) $ 615,083 Buildings and Structures 1,189,239 1,052,080 2,241,319 Improvements Other than Buildings 1,179,944 - 1,179,944 Machinery and Equipment 1,021,881 309,186 1,331,067 Totals $4,071,147 $1,296,266 $5,367,413 -18- CITY OF ROSEMOUNT NOTES TO THE FINANCIAL STATEMENTS (Continued) --------------------------------- December 31, 1986 NOTE 2 CHANGES IN GENERAL FIXED ASSETS (Continued) A summary of proprietary fund type property, plant and equipment at December 31, 1986 follows: Enterprise Land and Parking Lot $ 23,720 Buildings 95,705 Water Towers and Mains 2,451,719 Machinery and Equipment 135,661 Total $2,706,805 Less Accumulated Depreciation (584,824) Net $2,121,981 NOTE 3 CHANGES IN LONG-TERM DEBT The following is a summary of changes in long-term debt of the City for the year ended December 31, 1986: General Special Obligation Assessment Revenue Compensated Bonds Bonds Bonds Absenses BALANCE, January 1, 1986 $1,035,000 $1,575,000 $ 385,000 $ 113,867 New Bonds Issued - 1986 City Hall & Improvement Bonds 3,450,000 Increase (Decrease) in Long -Term Compensated Absence Liability Bonds Retired (150,000) (535,000) (60,000) - BALANCE, December 31, 1986 $4,335,000 $1,040,000 $ 325,000 $ 93,502 General Obligation Bonds General Obligation Bonds are recorded in the General Long -Term Debt group of accounts and are backed by the full faith and credit of the City. -19- CITY OF ROSEMOUNT NOTES TO THE FINANCIAL STATEMENTS (Continued) --------------------------------- December 31, 1986 NOTE 3 CHANGES IN LONG-TERM DEBT (Continued) Special Assessment Bonds These bonds are recorded as a liability in the Special Assessment Funds and are payable primarily from special assessments levied and collected for local improve- ments. The City has a contingent liability relating to a pledge of full faith and credit on the special assess- ment bonds. The general credit of the City is obligated only to the extent that liens foreclosed against proper- ties involved in the special assessment districts are insufficient to retire outstanding bonds. w Revenue Bonds ' These bonds are recorded as a liability of the Enter- prise Funds. The major covenant relating to these issues include establishment of a reserve account for the payment of bond principal and interest. These bonds are not general obligations of the City or payable from the proceeds of any ad valorem tax, but are paid solely from the revenue of the enterprise funds of the City. The annual requirements to amortize all debt outstanding as of December 31, 1986, including interest payments of $2,190,180 are as follows: Annual Requirements to Amortize Long -Term Debt December 31, 1986 Year Ending General Special December 31 Obligation Assessments Revenue Total 1987 $ 286,856 $ 745,346 $ 83,342 1,115,544 1988 251,896 326,142 79,298 657,336 1989 317,002 2,456,415 75,181 2,848,598 1990 285,208 171,040 51,013 507,261 1991 298,055 161,912 48,545 508,512 1992 251,897 152,600 41,150 445,647 1993 222,890 31,950 - 254,840 1994 199,510 30,025 - 229,535 1995 201,100 28,050 - 229,150 1996 201,925 26,025 - 227,950 1997 143,945 - 143,945 1998 147,170 - - 147,170 1999 144,800 - - 144,800 -20- CITY OF ROSEMOUNT NOTES TO THE FINANCIAL STATEMENTS (Continued) --------------------------------- ' December 31, 1986 ' NOTE 3 CHANGES IN LONG-TERM DEBT (Continued) Year Ending General Special December 31 Obligation Assessments Revenue Total 2000 146,880 - - 146,880 ' 2001 143,400_ _ 143,400 2002 139,522 139,522 $5,880,446 $1,631,205 $ 378,529 $7,890,180 $1,024,417 is available in the Debt Service Funds to service the general obligation bonds. ' NOTE 4 PENSION PLAN The City participates in the Public Employees Retirement Association contributory retirement plan, which covers substantially all of its employees. The Plan is administered by the State of Minnesota. Since the State does not compute the actuarial liability for each par- ticipating governmental unit, the actual unfunded liability, if any, is not determinable. The total City contribution for the year ended December 31, 1986 is $54,743. NOTE 5 FUND DEFICITS rSpecial Assessment Funds The deficits of the Special Assessment Funds arise because of the application of generally accepted accounting principles to the financial reporting for such funds. Bond proceeds used to finance construction 1 of special assessment projects are not recognized as "other financing sources". Liabilities for special assessment bonds payable are accounted for in Special ' Assessment Funds. Special assessments are recognized as revenue only to the extent that individual installments are considered current assets. The following deficits will be reduced and eliminated as deferred special assessment receivable installments become current assets: CITY OF ROSEMOUNT ' NOTES TO THE FINANCIAL STATEMENTS (Continued) --------------------------------- ' December 31, 1986 ' NOTE 5 FUND DEFICITS (Continued) 1978 Carrollton Addition $ 39,342 1980 Valley Oak Addition 206,032 1980 Chippendale Avenue 69,623 1984 O'Leary's Hill Debt 19,967 1985 White Lake Acres 232,132 NOTE 6 SPECIAL REVENUE FUNDS Federal Revenue Sharing Grants for the year ended December 31, 1986, by the entitlement period are as follows: Entitlement Period/Quarter Amount 16 1, 2, 3, 4 $ 45,093 NOTE 7 SEGMENT INFORMATION The City maintains two Enterprise Funds which provide utility services and municipal liquor operations. Segment information for the year ended December31, 1986, is as follows: Operating Revenue Operating Expenses - Depreciation Other Operating Income (Loss) Net Non -Operating Revenue (Expense) Net Income (Loss) Current Assets ' Current Liabilities Net Working Capital Municipal Utility Liquor Commission Total $ 65,731 $ 309,516 $ 375,247 - 77,673 77,673 76,195 246,174 322,369 $ (10,464) $ (14,331) $ (24,795) (41,137) 14,586 (26,551) $ (51,601) $ 255 $ (51,346) $ 65,209 $ 509,772 $ 574,981 20,000 73,570 93,570 $ 45,209 $ 436,202 $ 481,411 -22- CITY OF ROSEMOUNT ' NOTES TO THE FINANCIAL STATEMENTS (Continued) --------------------------------- December 31, 1986 NOTE 7 SEGMENT INFORMATION (Continued) Municipal Utility ' Liquor Commission Total Total Assets $ 65,209 $2,631,753 $2,696,962 ' Total Liabilities 60,000 350,953 410,953 Fund Equity $ 5,209 $2,280,800 $2,286,009 ' Assets Restricted for Debt Retirement and Future ' Improvements $ 65,182 $ 202,671 $ 267,853 Long -Term Debt $ 40,000 $ 228,648 $ 268,648 Fixed Asset Additions $ - $ 54,562 $ 54,562 Interfund Transfers Out $ 391,600 $ 61,441 $ 453,041 NOTE 8 FUND EQUITY RESERVES The City records reserves to indicate that a portion of the fund equity is legally segregated for a specific future use or cannot be appropriated for expenditures. Following is a list of all reserves used by the City and a description of each. ' Reserved for Debt Service - The portion of fund equity segregated for debt service resources legally restricted to the payment of long-term debt principal and interest ' amounts maturing in future years. Reserved for Project Completion - The portion of fund ' equity segregated for completion of capital projects financed by general obligation bonds. Reserved for Prepaids - The portion of fund equity segregated to indicate that prepaid insurance does not represent available spendable resources even though it is a component of current assets. ' -23- CITY OF ROSEMOUNT NOTES TO THE FINANCIAL STATEMENTS (Continued) ----------------------------- December 31, 1986 NOTE 9 LEGAL DEBT MARGIN Assessed Value Debt Limit - 7-1/3% of Assessed Value (1) Amount of Debt Applicable to Debt Limit Total Bonded Debt Less Special Assessment Bonds Revenue Bonds Net Debt Applicable to Limit Legal Debt Margin (1) Minnesota Statutes $ 5,700,000 (3,190,000) (325,000) $48,039,286 $ 3,521,280 2,185,000 $ 1,336,280 475.53 LIMIT ON NET DEBT. Subdivision 1. Gener- ally, except as otherwise provided in Section 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 7-1/3 percent of the assessed value. NOTE 10 CONTINGENCIES The City generally follows the practice of recording liabilities resulting from claims or legal action only when they become fixed or determinable in amount. As of December 31, 1986 there were no outstanding lawsuits or claims. -24- CITY OF ROSEMOUNT ' NOTES TO THE FINANCIAL STATEMENTS (Continued) --------------------------------- December -______ _______________________December 31, 1986 INOTE 11 LONG-TERM DEBT - OTHER The City of Rosemount Housing and Redevelopment Author- ity is the administering authority for the following tax increment district: The Rosemount Redevelopment Project A redevelopment district established May 1, 1979. Dura- tion is expected to be about ten years upon the payment of all principal and interest on indebtedness incurred for the project, the authorizing law being the Housing and Redevelopment Authority (Minn. Stats. §462.545 and ' Minn. Stats. 9462.585). Original Assessed Value: $ 1,476,061 Current Assessed Value: $ 3,074,991 Captured Assessed Value Retained by Authority: $ 1,598,930 Total Bonds Issued and Type Tax Increment Bonds $ 315,000 Amounts Redeemed (130,000) ' Outstanding Bonds at 12/31/86 $ 185,000 NOTE 12 CAPITAL PROJECT FUND DEFICITS The White Lake Acres Fund, County Road 38, and County Road 42, which are capital projects, had the following negative balances due to construction costs. These costs will be assessed to the property owners inthe ' future. County Road 38 $ (186,793) County Road 42 $ (93,569) White Lake Acres $ (20,172) NOTE 13 SALE OF LIQUOR STORE During 1986 the liquor store was sold for $270,000 plus ' the inventory. Investments have been restricted to fully pay off the bond principal and interest as they come due. The investments mature on the various due dates for the principal and interest. -25- CITY OF ROSEMOUNT NOTES TO THE FINANCIAL STATEMENTS (Continued) --------------------------------- December 31, 1986 NOTE 14 RECLASSIFICATION OF FUNDS The Water Hook-up, Water and Sewer CIP Program, Sewer Hook-up and Surcharge Funds were formerly classified under the Utility Fund and are now correctly presented as Special Revenue Funds. The 1985 Utility Commission fund balances have been restated. Park and Recreation self-supporting programs have been shown as a part of the general fund. For 1986 these have been reclassified as Special Revenue Funds for each of the programs. -26- COMBINING AND INDIVIDUAL FUND AND ACCOUNT GROUP STATEMENTS CITY OF ROSEMOUNT GENERAL FUND COMPARATIVE BALANCE SHEET ------------------------- December 31, 1986 and 1985 ASSETS CURRENT Cash Investments Accounts Receivable Taxes Receivable: Current Delinquent Special Assessments Receivable: Current Deferred Prepaid Expenses TOTAL ASSETS LIABILITIES AND FUND BALANCE CURRENT LIABILITIES Checks Written in Excess of Cash in Bank Accounts Payable Deferred Revenue Accrued Wages and Deductions Total Current Liabilities FUND BALANCE Reserved for Prepaids Unreserved Total Fund Balance TOTAL LIABILITIES AND FUND BALANCE -27- EXHIBIT E 1986 1985 1,255,000 1,404,000 2,077 36,869 88,426 - 29,441 13,219 23,162 31,207 89,867 95 77,839 47,643 $ 1,565,812 $ 1,533,033 $ 64,958 $ 91,420 69,321 82,284 119,308 13,314 - 31,769 $ 253,587 $ 218,787 $ 77,839 $ 47,643 1,234,386 1,266,603 $ 1,312,225 $ 1,314,246 $ 1,565,812 $ 1,533,033 1 -28- EXHIBIT F CITY OF ROSEMOUNT GENERAL FUND COMPARATIVE STATEMENT OF REVENUE, EXPENDITURES ' BALANCE _________AND-CHANGESlINlFUND For the Years Ended December ______________________ 31, 1986 and 1985 1986 1985 'REVENUE Actual Actual Taxes $ 842,977 $ 558,668 Licenses and Permits 74,430 69,795 ' Intergovernmental Revenue 782,031 727,662 Charges for Services 153,110 130,982 Fines and Forfeits 25,096 21,216 Miscellaneous 452,030 293,360 Total Revenue $ 2,329,674 $ 1,801,683 EXPENDITURES General Government $ 897,705 $ 797,160 Public Safety 440,682 446,257 Streets and Highways 363,925 259,325 Park and Recreation 89,855 128,036 Miscellaneous 490,749 213,096 Total Expenditures X2,282,916 1,94--3,-M EXCESS REVENUE OVER (UNDER) EXPENDITURES BEFORE OTHER SOURCES (USES) $ 46,758 $ (42,191) OTHER SOURCES (USES) Transfer from Other Funds $ 316,227 $ - ' Transfer to Other Funds (365,006) (54,844) Net Other Sources $ (48,779) $ (54,844) NET INCREASE (DECREASE) IN ' FUND BALANCE $ (2,021) $ (97,035) FUND BALANCE, January 1 1,314,246 1,411,281 FUND BALANCE, December 31 $ 1,312,225 $ 1,314,246 1 -28- E7Mrr c-1 CITY OF IiOSDam SPECSAL RffVMM FUNDS 0240M BALANCE SHEM December 31, 1986 (With Cmparative Totals for December 31, 1985) 5 -Year Capital Other Partici- Softball Volleyball Plaigrourd Temis Tiny Tots Prnr� Field Trips Broomball Stating Lessons CIP Projects pating Self- Self- Self- Self- Self- Self- Self- Self- Self - ASSETS Program wa Becreation Supporting StWorting a,,,,� Support!M Supporting Supporting StPportin3 StWort19 StWortIM Cw Cash in Park $ 15,006 $ - $ - $ 5 $ 500 $ - $ - $ 481 $ - $ - $ 300 $ - Invesbonts 350,000 - 750 6,000 3,000 1,000 500 2,000 500 500 500 250 Taxes Feceivable - - - - - - - - TOM ASSETS $ 365,006 $ - $ 950 $ 6,005 $ 3,500 $ 1,000 $ 500 $ 2,481 $ 500 $ 500 $ 800 $ 250 LTABn TTES ADD FUND BAIAtQE LIABnXrI S Cash Overdraft $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - Aocow is Payable - 745 - - - - - - - - - Earnest Money Payable - - Total Liabilities $ - $ 745 $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - RM BAEANM 365,006 (745) 750 6,005 3,500 1,000 500 2,481 500 500 800 250 TOTAL LTABILITffi ADD PXND BMADIM $ 365,006 $ - $ 750 $ 6,005 $ 3,500 $ 1,000 $ 500 $ 2,481 $ 500 $ 500 $ 800 $ 250 EDIT Cr2 arrsr of r�-AArrr SPECIAL. REV UE runs acmnmac BALANCE sHM Deo ber 31, 1986 (With 03%wative Mals for Decanter 31, 1985) -30- Self Severance Housing and Water 94=ting Federal Brockway and Redevelop - Water and Sewer Sewer Park and Revenue Cblf Retireaent mant Total. ASSETS Hook -Up CIP Progran Hook -UV Surer a Recreation Sharing Course Fund Autinrity 1986 1985 CLOENP Cash in Bank $ 3,082 $ 3,818 $ 3,524 $ 3,995 $ - $ 26,800 $ 11,162 $ 4,119 $ 67,421 $ 160,213 $ 163,866 Eats 345,000 55,000 280,000 135,000 - 40,000 - 40,000 100,000 1,360,000 778,000 'Maes Receivable - - - - - - - - 15,114 15,114 - TOTAL ASSETS $ 348,082 $ 58,818 $ 283,524 $ 138,995 $ - $ 66,800 $ 11,162 $ 44,119 $ 202,535 $ 1,535,327 $ 941,866 LIABILITIES AND F3fD BAL VM LIMITTIES Cash Overdraft $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ 2,017 Aocamts Payable _ _ _ - 990 20,382 - - - 22,117 534 Earnest M -,y Payable - - - - - - - - - - 1'000 Total Liabilities $ - $ - $ - $ - $ 990 $ 20,382 $ - $ - $ - $ 22,117 $ 3,551 PSM BALAITE 348,082 58,818 283,524 138,995 (990) 46,418 11,162 44,119 202,535 1,513,210 938,315 Tom LSABILITIES AND Rm OuANM $ 348,082 $ 58,818 $ 283,524 $ 138,995 $ - $ 66,800 $ 11,162 $ 44,119 $ 202,535 $ 1,535,327 $ 941,866 -30- -31- FAIT H-1 CITY OF ROSE>wIOURT SPECM RffA 41E FUNDS om]Dmm STP,TFrew OF RP VENUE, 3ME DIT M AND GRATIS IN FUND BAI19 M Fbr the,Year Ended Deoamber 31, 1986 (With Oagwative Totals for the Year Ended DMA er 31, 1985) Other Skating 5-Year Capital Partici- Softball Volleyball Playground Tennis Tiny Tots PoirPoms Field Trips Broomball Lessons CIP Projects pating Self- Self Self Self- Self Self Self Self Self- elfProgram RE±VVFSIOE Program MSA R—eation Supporting Supporting &Aoporting Spporting Supporting Smarting Smarting Smarting Supporting Intergoverrniental Federal F emm Sharing $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - Tax Increment - - - - - - - - - - - - Hcoestead Credit - - - - - - - - - - - Sale of Property - - - - - - - - - - - - Park and Recreation Use - - - - - - - - - - - Interest on Investments - - - 5 - - - - - - - - Fees- - - - - - - - - - - TOIL RL+VSm $ - $ - $ - S 5 $ EXPEMITUEMS Spring Clean-ap S - $ - $ -- Audit and Legal - - - - - - - - - - - - Chamber of Canoerce - - - - - - - - - - - - Mainterwce Building - - - - - - - - - - - - Salaries and Wages - - - - - - - - - - - - Engir—rirr3 - - - - - - - - - - - - Interest - - - - - - - - - - - - 94*1ies - - - - - - - - - - - - Other - 745 - - - - - - - - - - Capital Outlay Fixe Hall Lights - - Personal Oam uter - - - - - - - - - - - - Purahase of Property - - - - - - - - - - - - TOM E PE DI'IUES $ - $ 745 $ EAMSS OF 1 VWJE OVER (t im) EoDmNes $ - $ (745) $ - $ 5 $ - $ - $ OMM SXFCES WSES) Transfers from Other Funds $ 365,006 $ - $ 750 $ 6,000 $ 3,500 $ 1,000 $ 500 $ 2,481 S 500 $ 500 $ 800 $ 250 Transfers to Other Rads - - - - - - - - - - - - TOOL OTHER SOOFi^ES ([SES) $ 365,006 $ - $ 750 $ 6,000 $ 3,500 $ 1,000 $ 500 $ 2,481 $ 500 $ 500 $ 800 $ 250 EAMES OF HNN W E AID OliM SOCAiC3."S (USES) OVER "CM EUMITOFM AND 07882 USES $ 365,006 $ (745) $ 750 $ 6,005 $ 3,500 $ 1,000 $ 500 $ 2,481 $ 500 $ 500 $ 800 $ 250 FSDD BALANCE, January 1 - - - - - - - - - - - RM BAIMM, Deoember 31 $ 365,006 $ (745) $ 750 $ 6,005 $ 3,500 $ 1,000 $ 500 $ 2,481 $ 500 $ 500 $ 800 $ 250 -31- EMMIT H-2 • as •i a r � .. : 5,11 -, Ya to •' 9" a z11 M For the Year Ended Deoenber 31, 1986 (With Om aarative Totals for the Year Ended Deowber 31, 1985) Self Severance Homing and Water Suportirg Federal Brockway and Redevelop - Water and Sewer Sewer Park and Rsvernue Golf Retirement Ment Total REVBQFE Eiook�lp CIP Program Hook -Up Surcharge Recreation Sharing Course Fund Authority 1986 1985 Intergouerrnua tial Federal mite ming $ - $ - $ - $ - $ - $ 45,093 $ - $ - $ - $ 45,093 $ 58,732 General Prot' Taxes - - - - - 181,535 181,535 124,820 Homestead Credit - - _ _ _ _ _ 4,647 4,000 4,634 Sale of Property _ _ _ _ - _ - _ 1,000 1,000 63,003 Park and Peoreation Use 36,041 - 62,388 - - 98,429 84,179 Interest on Invesbmerits 19,653 - 16,475 9,485 949 3,631 - 3,149 9,766 63,113 62,480 OonnectiorVFl000nnaotion Fees 75,790 - 75,043 - - - - - - 150,833 131,759 TOM FMMMM $ 95,443 $ - $ 91,518 $ 9,485 $ 36,990 $ 48,724 $ 62,388 $ 3,149 $ 197,148 $ 544,850 $ 529,607 E PE D1TUEES Spring Clear'up $ - $ - S - $ - $ - $ - $ - $ - $ - $ - $ 2,706 hrUt and Legal. 100 - 100 100 13,487 3,177 - - 3,532 20,496 2,549 Chamber of Oomeroe - - - - - - - - - - 16,750 1K3interwee Building - _ _ _ - _ - - _ - 10,444 Salaries and Wages - - - - 8,503 - 44,256 11,098 - 63,857 55,843 Engineering - _ _ _ - _ - - _ - 1,810 Interest - _ - _ - _ - 5,300 Supplies - - - - 10,698 1,396 4,400 - - 16,494 14,437 Other - - - - 1,672 20,315 10,031 - 13,476 46,239 9,863 Capital Outlay Fire Hall Lights - - - - - - - - - - 650 Personal muter - - - - - - - - - - 1,125 Purchase of Property - - - - - 20,066 - - 73,320 93,386 63,000 TOYAL EO?IIeDMURES $ 100 $ - $ 100 $ 100 $ 34,360 $ 44,954 $ 58,687 $ 11,098 $ 90,328 $ 240,472 $ 184,477 ESS OF MMM OVER MMM EO?1Mr1MMS $ 95,343 $ - $ 91,418 $ 9,385 $ 2,630 $ 3,770 $ 3,701 $ (7,949) $ 106,820 $ 304,378 $ 345,130 Transfers Fran Other Funds $ - $ 58,818 $ - $ - $ - $ - $ - $ 4,085 $ - $ 444,190 $ 57,844 Transfers to Other Rads (29,775) - (58,599) (22,793) (16,281) - - _ (46,325) (173,773) (170,532) 7O,L 9CUfCES (USES) $ (29,775) $ 58,818 $ (58,599) $ (22,793) $ (16,281) $ - $ - $ 4,085 $ (46,325) $ 270,417 $ (112,688) MCESS OF FUT13IR AMID OIBER MMM (MES) OM PMI) EXFMITMES AND OMM USES $ 65,568 $ 58,818 $ 32,819 $ (13,408) $ (13,651) $ 3,770 $ 3,701 $ (3,864) $ 60,495 $ 574,795 $ 232,442 FM BALAKE, January 1 282,514 - 250,705 152,403 12,661 42,648 7,461 47,983 142,040 938,415 705,873 AMD BMANM, Deowber 31 $ 348,082 $ 58,818 $ 283,524 $ 138,995 $ (990) $ 46,418 $ 11,162 $ 44,119 $ 202,535 $ 1,513,210 $ 938,315 -32- ASSETS Cash in Bank Investments Special Assessments - Current - Deferred Taxes Aeoeivable TOTAL ASSETS LIABILITIES AND FUM BAIANM Deferred Fieve ie Rz d Balance Reserved for Debt Service TOTAL LIABILITliS AND FUND BALANM EKH133IT I CITY OF resff4xw DEBT SERVICE FUNDS COMINING BALANCE SEM December 31, 1986 (with Ocgparative Mals for December 31, 1985) General General Cbligation Cbligation Fire Hall Oombination Iigxwenent Park Teq-racy Municipal and Truck Inprovements Refinance Bonds Warning Tax Inprovement Building Total 1972-76 1975 1976 1976 Siren Increment 1986A 1986 1986 1985 $ $ 5,856 $ 2,405 $ 1,402 $ 14,446 $ 40,100 $ 15,827 $ 50,339 $ 130,375 $ 275,916 - 275,000 475,000 55,000 - 10,000 25,000 30,000 870,000 681,000 - 4,638 - - - - - - 4,638 10,573 - 44,841 - - - - - - 44,841 - 838 856 - - - 1,694 8,136 $ - $ 330,335 $ 477,405 $ 57,240 $ 15,302 $ 50,100 $ 40,827 $ 80,339 $ 1,051,548 $ 975,625 $ - $ 44,841 $ - $ - $ - $ - $ - $ - $ 44,841 $ - 285,494 477,405 57,240 15,302 50,100 40,827 80,339 1,006,707 975,625 $ - $ 330035 $ 477,405 $ 57,240 $ 15,302 $ 50,100 $ 40,827 $ 80,339 $ 1,051,548 $ 975,625 -33- EXHIBIT J CTPS OF >iOSII' PEEP SER= EUMS COl RMG SMM4EPTT OF MOM, EURVITMES AND CFFGS IN FUND BATS For the Year Flded December 31, 1986 (With Coitparative Mals for the Year Fridsd Deoarber 31, 1985) -34- General General Obligation Cbligation Fire Hall Combination Igzwenezt Park Temporary Municipal arra Truck Improvements Befinaixe Bonds Warning Tax Improvement Building Total REVRM 1972-76 1975 1976 1976 Siren Increment 1986A 1986 1986 1985 General Property Tames $ 400 $ - $ 2,958 $ 6,129 $ 7,383 $ - $ - $ - $ 16,870 $ 76,024 Intergoverrmertal - - - 1,703 1,740 - - - 3,443 16,107 Special Assessments - 8,079 - - - - - - 8,079 11,698 Interest on Investments 1,307 17,524 26,756 3,425 464 620 35,522 42,346 127,964 59,966 Other - - - - - - 5,805 2,906 8,711 - Total Feverure .$---1,507 $ 25,603 S 29,714 $ 11,257 $ 9,587 $ 620 $ 41,327 $ 45,252 $ 165,067 $ 163,795 EXPEDDTTUfM Boyd Principal $ 25,000 $ 35,000 $ 35,000 $ 15,000 $ 10,000 $ 30,000 $ - $ - $ 150,000 $ 175,000 Interest on Bads 763 5,198 27,919 7,006 6,189 19,010 - - 66,085 76,295 Fiscal Agent Fees 8 15 128 104 7 21 500 103 886 226 Audit 100 100 100 100 100 100 - - 600 600 Other 1,864 - 4,354 - - - - - 6,218 Total Mgwditures $ 27,735 $ 40,313 $ 67,501 $ 22,210 S 16,296 $ 49,131 $ 500 $ 103 $ 223,789 $ 252,121 FMSS OF MEM E OVER (MMM EX?E DITUIM BFB SOUFCES (DBEs) $ (26,028) $ (14,710) $ (37,787) $ (10,953) $ (6,709) $ (48,511) $ 40,827 $ 45,149 $ (58,722) $ (88,326) OMM SWRMS MM) Transfer from H.R.A. $ - $ - $ - $ - $ - $ 46,325 $ - $ - $ 46,325 $ 49,010 Transfer from Other Funds - - 43,479 - - - - 35,190 78,669 88,745 Transfer to Other Fwxb (35,190) - - - - - - - (35,190) - Net Other Sources (Uses) $ (35,190) $ - $ 43,479 $ - $ - $ 46,325 S - S 35,190 $ 89,804 $ 137,755 FSS ELM" ADD OMM SCUMES OVER (UNEM EXPE DIT[IiFs ADD ORf R USES $ (61,218) $ (14,710) $ 5,692 $ (10,953) $ (6,709) $ (2,186) $ 40,827 $ 80,339 $ 31,082 $ 49,429 FLDD BATANM, January 1 61,218 300,2[14 471,713 68,193 22,011 52,286 - - 975,625 926,196 RM BATADI`J::, December 31 $ - $ 285,494 $ 477,405 $ 57,240 $ 15,302 $ 50,100 $ 40,827 $ 80,339 $ 1,006,707 $ 975,625 -34- EXHIBIT K-1 CITY OF }DEMOUNT CAPITAL PROJECT FUNDS COMBINING BALANCE SHEET December 31, 1986 (With Comparative Totals for December 31, 1985) ASSETS Cash Investments Due from State of Minnesota Special Assessment Receivable TOTAL ASSETS LIABILITIES AND FUND BALANCE LIABILITIES County Road County Road Country Jay Simons #38 #42 Hills 130th Street $ - $ - $ - $ 133,999 138,217 - $ $ 138,217 $ 133,999 Cash Overdraft $ 149,414 $ 88,621 $ - $ - Accounts Payable 37,379 41948 45,790 6,794 Contracts Payable - - - 176,947 Deferred Revenue - - 138,217 Total Liabilities $ 186,793 $ 93,569 $ 184,007 $ 183,741 FUND BALANCE (186,793) (93,569) (45,790) (49,742) TOTAL LIABILITIES AND FUND BALANCE $ - $ - $ 138,217 $ 133,999 -35- -36- EXHIBIT IF2 CITY OF CAS PFDMT FUNDS CUBIND G BAiANCE SHEET Deceter 31, 1986 (With Oa(parative Mals for Deowber 31, 1985) Park Knicipal O'Iearys' valley Westridge Total Year E}ded InQnove- Carroils State Hills - 2nd White Lake Oak City 1st December 31, December 31, ASSESS mets Wwds Aid Construction strtion Acres Phase 2 Hall Addition 1986 1985 Cash $ 3,962 $ - $ 5,342 $ 296,043 $ - $ 163,453 $ 233,337 $ 369,923 $ 1,206,059 $ 4,646 Investments 30,000 - 120,000 - - - - - 150,000 170,000 Due frac State of bbxmsota - - - - - - - - - 26,664 Special Assessment Receivable - - - 2,162 - 5,664 - 8,155 154,198 TOTAL ASSETS $ 33,962 $ - $ 125,342 $ 298,205 $ - $ 169,117 $ 233,337 $ 378,078 $ 1,510,257 $ 201,310 LIABILITIES AND FUND BALMI'M LIABILITIES Cash Overdraft $ - $ - $ - $ - $ 649 $ - $ - $ - $ 238,684 $ 7,792 Accounts Payable - - - 292 182 123 25,041 17,798 138,347 144 Contracts Payable - - - 221 19,341 - 90,186 265,179 551,874 6,607 Deferred Averue - - - 2,162 - 5,664 - 8,155 154,198 Total Liabilities $ - $ - $ - $ 2,675 $ 20,172 $ 5,787 $ 115,227 $ 291,132 $ 1,083,103 $ 14,543 FUND BAIANM 33,962 - 125,342 295,530 (20,172) 163,330 118,110 86,946 427,154 186,767 TOTAL LIABILITIES AND Fcw BALANCE $ 33,962 $ - $ 125,342 $ 298,205 $ - $ 169,117 $ 233,337 $ 378,078 $ 1,510,257 $ 201,310 -36- EXHIBIT L-1 CITY OF ROSEMOUNT CAPITAL PROJECT FUNDS COMBINING STATEMENT OF REVENUE, EXPENDITURES, AND CHANGES IN FUND BALANCE For the Year Ended December 31, 1986 (With Comparative Totals for the Year Ended December 31, 1985) -37- County Road County Road Country Jay Simons #38 #42 Hills 130th Street REVENUE Municipal State Aid $ - $ - $ _ $ _ Other Revenue Interest on Investments - - - - Bond Proceeds - - - 249,971 Total Revenue $ - $ - $ - $ 249,971 EXPENDITURES Construction Costs Improvements $ 168,073 $ 92,784 $ - $ 203,315 Engineering Fees 3,292 176 45,790 90,567 Other Project Costs Audit - _ _ _ Legal 1,428 - - 2,954 Other 14,000 609 - 2,877 Fiscal Agent Fees - - - Capital Outlay - - - - Total Expenditures $ 186,793 $ 93,569 $ 45,790 $ 299,713 EXCESS REVENUE OVER (UNDER) EXPENDITURES BEFORE TRANSFERS $ (186,793) $ (93,569) $ (45,790) $ (49,742) OTHER SOURCES (USES) Transfer from Other Funds $ - $ - $ - $ - Transfer to Other Funds - - - - Net Other Sources (Uses) $ - $ - $ - $ - NET INCREASE (DECREASE) IN FUND BALANCE $ (186,793) $ (93,569) $ (45,790) $ (49,742) FUND BALANCE, January 1 - - - - FUND BALANCE, December 31 $ (186,793) $ (93,569) $ (45,790) $ (49,742) -37- REVENUE Municipal State Aid Other Revenue Interest cn Investments Bond Proceeds Total revenue EXPEMMUFM Omstruction Oasts Improvements Engineering Ernes Other Project Costs Audit Legal Other Fiscal Argent Ekes Capital Outlay Total bVedit res EIDESS F'EUE M a= (C13:EE2) WOII?MES BEETRAM OMM SMWCES WS S) Transfer from Other Funds Transfer to Other Ends Net Other Sources (Uses) MET 11CFMSE MSMMM) IN PUM BAIRN= Pam BAIANM, January 1 FEM BMAN , December 31 EXHIBIT L-2 •• M Ji 111115 Y 9 a a•1''a . •�a. 11 �•�• ra.. 11 Ma. Ebr the Year MAed December 31, 1986 (With Congestive Totals for the Year Ended Deoaober 31, 1985) -38- EUNID6 Valley Westrid3e Park Municipal O'Learys' Mgxove- Carrolls State Hills - 2nd Waite Lake Oak City 1st Totals ments Floods Aid Constructicn Acres Phase 2 Hall Addition 1986 1985 $ - $ - $ - $ - $ - $ - $ - $ - $ - $ 48,941 2,066 275 7,909 - 1,560 - - - 11,810 15,126 - - - 416,900 - 372,838 1,280,000 1,078,687 3,398,396 - $ 2,066 $ 275 $ 7,909 $ 416,900 $ 1,560 $ 372,838 $ 1,280,000 $ 1,078,687 $ 3,410,206 $ 64,067 $ 1,748 $ - $ - $ 93,429 $ 48,599 $ 177,618 $ 1,117,290 $ 869,985 $ 2,772,841 $ 161,213 - - 1,753 23,311 6,453 28,024 2,148 107,278 308,792 42,218 100 100 100 - 100 - - 400 400 - - - 188 242 65 2,538 706 8,121 75 - - - 4,442 250 3,801 20,179 13,772 59,930 144 - - - - - - - - - 8,820 - - - - - - 19,735 - 19,735 21,351 $ 1,848 $ 100 $ 1,853 $ 121,370 S 55,644 $ 209,508 $ 1,161,890 $ 991,741 $ 3,169,819 $ 233,221 $ 218 $ 175 $ 6,056 $ 295,530 $ (54,084) $ 163,330 $ 118,110 $ 86,946 $ 240,387 $ (169,154) $ 6,761 $ - $ - $ - $ - $ - $ - $ - $ 6,761 $ 211,775 - (6,761) - - - - - - (6,761) (195,314) $ 6,761 $ (6,761) $ - $ - $ - $ - S - $ - $ - $ 16,461 $ 6,979 $ (6,586) $ 6,056 $ 295,530 $ (54,084) $ 163,330 $ 118,110 $ 86,946 $ 240,387 $ (152,693) 26,983 6,586 119,286 - 33,912 - - - 186,767 339,460 $ 33,962 $ - $ 125,342 $ 295,530 $ (20,172) $ 163,330 $ 118,110 $ 86,946 $ 427,154 $ 186,767 -38- E EMIT M 7•ar •ti7a� is � �. Dsoeaber.31, 1986 (With OoRwative Mals for December 31, 1985) LUBILMES AAD FORA BAFANM 1 s :. / IM, Aocaants Payable G.O. Lrpr. - $ - $ - $ FUMS - $ - $ - $ - $ - $ - $ 632 Brobacks South Carrollton Pahn's 8th Valley Oak Chippendale Excess O'Leary's WAtz Lake - 45,778 Bad 10-11-12 Fuse Park Addition Addition Addition Avenue Band Hill Acres Totals ASSETS 1976 1975 1977 1978 1980 1980 1980 Fund Debt 1985 1986 1985 31,346 - 18,375 - 260,382 - Total Liabilities $ 20,000 $ 34,681 $ 21,500 $ Cash $ 2,856 $ 3,429 $ 4,676 $ 658 $ 3,160 $ 14,735 $ - $ 1,128 $ - $ - $ 30,642 $ 335,854 Investtaents 155,000 105,000 40,000 - 25,000 260,000 165,363 5,000 - - 755,363 770,000 Special Assessments AND RM B4LAN,M $ 157,856 $ 119,783 $ 44,676 $ Peceivable - Current - 2,990 - 31,872 - 169,108 31,346 - 25,811 - 261,127 135,748 - Deferred - 8,364 - - - - - - 18,375 - 26,739 - Tawes Receivable - - - - - - - - - - 608 TOPAZ ASSETS $ 157,856 $ 119,783 $ 44,676 $ 32,530 $ 28,160 $ 443,843 $ 196,709 $ 6,128 $ 44,186 $ - $ 1,073,871 $ 1,242,210 LUBILMES AAD FORA BAFANM 1 s :. / IM, Aocaants Payable $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ 632 Cash Overdraft - - - - - - 5,753 - 45,778 17,132 68,663 47,388 Bonds Payable 20,000 25,000 21,500 40,000 8,500 480,767 229,233 - - 215,000 1,040,000 1,575,000 Deferred Reverie - 9,681 - 31,872 - 169,108 31,346 - 18,375 - 260,382 - Total Liabilities $ 20,000 $ 34,681 $ 21,500 $ 71,872 $ 8,500 $ 649,875 $ 266,332 $ - $ 64,153 $ 232,132 $ 1,369,045 $ 1,623,020 RM BALRNM (DEFICIT) 137,856 85,102 23,176 (39,342) 19,660 (206,032) (69,623) 6,128 (19,967) (232,132) (295,174) (380,810) TOPAL LIABIUMS AND RM B4LAN,M $ 157,856 $ 119,783 $ 44,676 $ 32,530 $ 28,160 $ 443,843 $ 196,709 $ 6,128 $ 44,186 $ - $ 1,073,871 $ 1,242,210 MC m Mvwaejaztzie • SPB;TAI, ASSESSHM EU 0S C243INM Sof OF REi7EIM, E}MMITUMS AND C MMS IN RM BADS Pbr the Year E]xied December 31, 1986 (With Comparative Totals for the Year EYd_d Deoemher 31, 1985) -40- G.O. Inpr. Brobacks Sank Carrollton ETI3)6 Rahn's 8th Valley Oak Chippendale Excess O'Leary's Mite Lake Bonds 10-11-12 Rose Park Addition Addition Addition Avenue Boyd Bill Acres Totals MAN1E 1976 1975 1977 1978 1980 1980 1980 FUrd Debt 1985 1986 1985 Special Assesments $ - $ 2,752 $ - $ 12,503 $ - $ 29,290 $ 7,097 $ - $ 50,663 $ - $ 102,305 $ 329,202 General Property Tax - - - - - - - - 160 - 160 6,352 Harestead Credit - - - _ _ _ _ - - - 1,347 Other Revenue - - - - _ - - - 1,894 Interest on Investments 12,680 6,347 2,492 12 1,929 10,305 10,604 393 17,908 - 62,670 58,196 Total Fevexue $ 12,680 $ 9,099 $ 2,492 $ 12,515 $ 1,929 $ 39,595 $ 17,701 $ 393 $ 68,731 $ - $ 165,135 $ 396,981 ElGS�ITSEEv Interest on Bonds $ 1,490 $ 1,847 $ 1,586 $ 4,710 $ 864 $ 33,329 $ 15,028 $ - $ 25,013 $ 18,294 $ 102,160 $ 99,600 Fiscal Apnt Flees 106 5 80 16 45 120 119 - 205 - 696 432 Audit 100 100 100 100 100 100 100 100 200 100 1,100 900 Other - - - - - 7,612 - - 607 - 8,220 632 Total Egxn$itures MCESS MORE am (U11I3O S 1,696 S 1,952 S 1,766 S - 4,826 $ 1,009 S 41,161 $ 15,247 $ 100 $ 26,025 $ 18,394 $ 112,176 $ 101,564 EXPENDr1LMS BEEt3:tE OIM SO[}!L"ESS (USES) $ 10,984 $ 7,147 $ 726 $ 7,689 $ 920 $ (1,566) $ 2,454 $ 293 $ 42,706 $ (18,394) $ 52,959 $ 295,417 OMM SXRMS (USES) Transfers fr an Other Raids $ - $ - $ - $ - $ - $ 23,979 $ 8,698 $ - $ - $ - $ 32,677 $ 263,929 Transfers to Other F1uds - - - - - - - - - - - (286,778) Net Other Sources (Uses) $ - $ - $ - $ - $ - $ 23,979 $ 8,698 $ - $ - $ - $ 32,677 $ (22,849) EAMS REt1Fi4E No Onm SaTCES OJER (UNOM EXPENDITOFMS AND OTHER USES $ 10,984 $ 7,147 $ 726 $ 7,689 $ 920 $ 22,413 $ 11,152 $ 293 $ 42,706 $ (18,394) $ 85,636 $ 272,568" RDD BAIANM (LWICIT) , January 1 126,872 77,955 22,450 (47,031) 18,740 (228,445) (80,775 r ) 5 r 835 (62,673) (213,738) (360,810) (653,378) RM MANX M TCIT) , December 31 $ 137,856 $ 85,102 $ 23,176 $ (39,342) $ 19,660 $ (206,032) $ (69,623) $ 6,128 $ (19,967) $ (232,132) $ (295,174) $ (380,810) -40- CITY OF ROSEMOUNT ; ENTERPRISE FUNDS COMBINING BALANCE SHEET ----------------------- December 31, 1986 (With Comparative Totals for December 31, 1985) ASSETS CURRENT ASSETS Cash Accounts Receivable Investments Prepaid Expenses Merchandise Inventory Special Assessments Receivable - Deferred Total Current Assets RESTRICTED ASSETS Cash Assessments Receivable Investments Total Restricted Assets PROPERTY AND EQUIPMENT Land Parking Lot Buildings Building Improvements Furniture and Fixtures Water Towers and Mains Machinery and Equipment Total Property and Equipment Less Accumulated Depreciation Net Property and Equipment TOTAL ASSETS EXHIBIT 0-1 Municipal Utility Liquor Commission Store Fund 1986 1985 $ 27 $ (8,839) $ (8,812) $ 84,085 72,217 72,217 70,909 215,000 215,000 269,907 20,075 20,075 16,207 46,865 8,648 8,648 2,995 $ 27 $ 307,101 $ 307,128 $ 490,968 $ - $ 6,332 $ 6,332 $ 27,688 - 1,339 1,339 1,438 65,182 195,000 260,182 180,000 $ 65,182 $ 202,671 $ 267,853 $ 209,126 $ - $ 23,720 $ 23,720 $ 30,784 - - 10,491 - 95,705 95,705 422,114 - - 13,951 - 49,452 2,451,719 2,451,719 2,430,545 135,661 135,661 111,623 $ $ 2,706,805 $ 2,706,805 $ 3,068,960 (584,824) (584,824) (612,853) $ - $ 2,121,981 $ 2,121,981 $ 2,456,107 $ 65,209 $ 2,631,753 $ 2,696,962 $ 3,156,201 -41- EXHIBIT 0-2 CITY OF ROSEMOUNT ENTERPRISE FUNDS COMBINING BALANCE SHEET - December31, 1986 (With Comparative Totals for December 31, 1985) -42- Municipal Utility Liquor Commission Store Fund 1986 1985 LIABILITIES AND RETAINED EARNINGS CURRENT LIABILITIES Payable from Current Assets $ - $ 39,837 $ 39,837 $ 33,219 Accounts Payable - - 10,246 Accrued Expenses Customer Meter Deposits - 19,762 19,762 21,123 Compensated Absences Payable - 13,971 13,971 16,707 Checks Written in Excess of Cash in Bank - - - Total Payable from Current Assets $ - $ 73,570 $ 73,570 $ 81,295 Payable from Restricted Assets - $ 20,000 $ 45,000 $ 65,000 $ 60,000 Bonds Payable Current - 3,735 3,735 5,437 Accrued Interest on Bonds Total Payable from Restricted Assets $ 20,000 $ 48,735 $ 68,735 $ 65,437 LONG-TERM LIABILITIES Bonds Payable - Less Current Portion Above $ 40,000 $ 220,000 $ 260,000 $ 325,000 Deferred Revenue - 8,648 8,648 2,995 Total Long -Term Liabilities $ 40,000 $ 228,648 $ 268,648 $ 327,995 Total Liabilities $ 60,000 $ 350,953 $ 410,953 $ 474,727 RETAINED EARNINGS 5,209 2,280,800 2,286,009 2,681,474 TOTAL LIABILITIES AND RETAINED EARNINGS $ 65,209 $ 2,631,753 $ 2,696,962 $ 3,156,201 -42- CITY OF ROSEMOUNT EXHIBIT P ENTERPRISE FUNDS COMBINING STATEMENT OF REVENUE, EXPENSES AND CHANGES IN RETAINED EARNINGS ------------------------------------------------------------------------- For the Year Ended December 31, 1986 (With Comparative Totals for the Year Ended December 31, 1985) Municipal Utility Liquor Commission Total Year Ended Store Fund 1986 1985 SALES AND COST OF SALES Sales $ 258,135 $ $ 258,135 $ 583,453 Cost of Sales 192,404 - 192,404 406,276 GROSS PROFIT 65,731 $ - $ 65,731 $ 177,177 OPERATING REVENUE Water Sales Sewer Customer Water Meter Maintenance Water Meters Lift Station Maintenance Miscellaneous Total Operating Revenue Total Gross Profit and Operating Revenue OPERATING EXPENSES Salaries and Wages Supplies Other Services Other Charges Metro Sewer Charge Depreciation Expense Total Operating Expenses OPERATING INCOME (LOSS) NON-OPERATING REVENUE (EXPENSES) Sales Tax Commissions Interest on Investments Other Revenue Interest on Bonds Other Expense Loss on Sale Net Non -Operating Revenue INCOME (LOSS) BEFORE OPERATING TRANSFER Transfers In Transfers Out NET INCOME (LOSS) RETAINED EARNINGS, January 1 RETAINED EARNINGS, December 31 $ - $ 142,826 $ 142,826 $ 148,992 142,938 142,938 144,774 6,742 6,742 6,511 4,241 4,241 2,447 - - 972 12,769 12,769 4,348 $ T-309,516 330�099 551�16 $ 308,044 65,731 $ 309,516 x+485,221 $ 31,983 $ 82,159 $ 114,142 $ 147,656 1,543 25,425 26,968 31,998 18,685 25,130 43,815 98,435 23,984 3,480 27,464 53,498 - 109,980 109,980 83,227 77,673 77,673 83,582 $ b 1 323,847 400,04 2 $ 49b,396 $ (10,464) $ (14,331) $ (24,795) $ (13,175) $ - $ 1,024 $ 1,024 $ - - - 260 5,590 24,532 30,122 43,155 152 - 152 2,975 (5,750) (10,432) (16,182) (25,012) (115) (538) (653) (374) (41,014) - (41,014) - $ (41,137) $ 14,586 $ (26,551) $ 21,004 $ (51,601) $ 255 $ (51,346) $ 7,829 74,010 34,912 108,922 36,165 (391,600) (61,441) (453,041) - $ (369,191) $ (26,274) $ (395,465) $ 43,994 374,400 2,307,074 2,681,474 2,637,480 $ 5,209 $ 2,280,800 $ 2,286,009 $ 2,681,474 -43- EXHIBIT Q CITY OF ROSEMOUNT ENTERPRISE FUNDS COMBINING STATEMENT OF CHANGES IN FINANCIAL POSITION ---------------------------------------------------- For the Year Ended December 31, 1986 (With Comparative Totals for the Year Ended December 31, 1985) SOURCES OF WORKING CAPITAL Operations Net Income (Loss) Before Transfers Item not Requiring Outlay of Working Capital Depreciation Loss on Sale Total from Operations Sale of Equipment Transfers from Other Funds Total Working Capital Provided by All Sources USES OF WORKING CAPITAL Acquisition of Fixed Assets Retirement of Long -Term Debt Transfers to Other Funds Transfer of Funds to Special Revenues Total Uses of Working Capital NET INCREASE IN WORKING CAPITAL The Increase (Decrease) in Working Capital is Accounted for as Follows: Cash and Investments Accounts Receivable Assessments and Taxes Receivable Allowance for Delinquent Taxes Inventory Prepaid Expenses Accounts Payable Accrued Expenses Customer Meter Deposits Compensated Absenses Payable Deferred Revenue NET INCREASE IN WORKING CAPITAL Municipal (699,599) $ Utility 73,660 (933) 2,241 Liquor Commission - Total 5,554 Store - Fund - 1986 1985 - (46,865) 3,648 $ (51,601) $ 255 $ (51,346) $ 7,829 - (21,387) 77,673 3,948 77,673 83,582 41,014 1,361 - 1,454 41,014 (565) $ (10,587) $ 77,928 $ 67,341 $ 91,411 $ 270,000 $ - $ 270,000 $ - 74,010 34,912 108,922 36,165 $ 333,423 $ 112,840 $ 446,263 $ 127,576 $ - $ 54,561 $ 54,561 $ 2,147 20,000 40,000 60,000 60,000 391,600 61,441 453,041 - - 679,166 679,166 $ 411,600 $ 835,168 $ 1,246,768 $ 62,147 $ (78,177) $ (722,328) $ (800,505) $ 65,429 Increase(Decrease) $ (68,545) $ (699,599) $ (768,144) $ 73,660 (933) 2,241 1,308 (2,294) - 5,554 5,554 (284) - - - 4,717 (46,865) - (46,865) 3,648 (4,478) 8,346 3,868 2,846 31,343 (37,961) (6,618) (21,387) 8,000 3,948 11,948 109 - 1,361 1,361 1,454 3,301 (565) 2,736 5,955 - (5,653) (5,653) __(2,995) $ (78,177) $ (722,328) $ (800,505) $ 65,429 -44- CITY OF ROSEMOUNT EXHIBIT R UTILITY COMMISSION FUND COMPARATIVE BALANCE SHEET ------------------------- December 31, 1986 and 1985 ASSETS CURRENT Cash Accounts Receivable Delinquent Special Assessments Receivable Investments Prepaid Metro Sewer Charge Prepaid Expenses Total Current Assets RESTRICTED ASSETS Cash Assessments Receivable Investments Total Restricted Assets PROPERTY AND EQUIPMENT Land Buildings Water Towers and Mains Machinery and Equipment Total Property and Equipment Less Accumulated Depreciation Net Property and Equipment TOTAL ASSETS ' LIABILITIES AND RETAINED EARNINGS CURRENT LIABILITIES Payable from Current Assets Accounts Payable Accrued Expenses Customer Meter Deposits Compensated Absences Payable Total Payable from Current Assets 1986 1985 $ (8,839) 72,217 8,648 215,000 8,954 11,121 $ 307,101 $ 6,332 1,339 195,000 $ 202,671 $ 23,720 95,705 2,451,719 135,661 $ 2,706,805 (584,824) $ 2,121,981 $ 2-,633 ,753 $ 39,837 19,762 13,971 73,570 Payable from Restricted Assets Bonds Payable - Current $ 45,000 Accrued Interest on Bonds 3,735 Total Payable from Restricted Assets $ 48,735 LONG-TERM LIABILITIES Bonds Payable Less Current Portion Above Deferred Revenue Total Long -Term Liabilities TOTAL LIABILITIES RETAINED EARNINGS I TOTAL LIABILITIES AND RETAINED EARNINGS -45- $ 220,000 8,648 $ 228,648 $ 33,238 69,976 2,995 187,000 8,419 3,310 $ 304,3$ $ 27,688 1,438 180,000 $ 209,126 $ 23,720 86,356 2,430,545 111,623 $ 2,652,244 (507,151 $ 2,145,093 T-71659,157 $ 1,876 3,396 21,123 13,406 $ 39,801 $ 40,000 4,2.87 $ 44,287 $ 265,000 2,995 $ 267,995 $ 350,953 $ 352,083 2,280,800 2,307,074 $ 2,631,753 $ 2,659,157 CITY OF ROSEMOUNT EXHIBIT S UTILITY'COMMISSION FUND COMPARATIVE STATEMENT OF INCOME AND RETAINED EARNINGS ----------------------------------------------------- For the Years Ended December 31, 1986 and 1985 OPERATING REVENUE Water Sales Sewer Customers Water Meter Maintenance Water Meters Lift Station Maintenance Miscellaneous Total Operating Revenue OPERATING EXPENSES General and Administrative Personal Services Water Utility Supplies Other Services Other Charges Capital Outlay Sewer Utility Supplies Other Services Other Charges Metro Sewer Charge Depreciation Expense Total Operating Expenses OPERATING INCOME NON-OPERATING REVENUE (EXPENSES) Interest Earnings Sales Tax Delinquent Special Assessments Interest Expense Fiscal Agent Fees Audit Net Non -Operating Revenue NET INCOME BEFORE OPERATING TRANSFERS OPERATING TRANSFERS IN OPERATING TRANSFERS OUT NET INCOME RETAINED EARNINGS, January 1 RETAINED EARNINGS, December 31 -46- 1986 1985 $ 142,826 $ 148,992 142,938 144,774 6,742 6,511 4,241 2,447 - 972 12,769 4,348 $ 309,516 $ 308,044 $ 82,159 $ 73,541 24,412 25,852 20,921 74,186 - 11,178 3,429 - 2,307,074 2,291_,735 $ 2,280,800 $ 2,307,074 1,013 1,401 4,161 2,823 99 1,357 109,980 83,227 77,673 74,744 $ 323,847 $ 348,309 $ (14,331) $ (40,265) $ 24,532 $ 32,467 1,024 - - 2,975 (10,432) (16,729; (238) (74: (300) (200; $ 14,586 $ 18,439 $ 255 $ (21,826; 34,912 37,165 (61,441) - $ (26,274) $ 15,339 2,307,074 2,291_,735 $ 2,280,800 $ 2,307,074 EXHIBIT T CITY OF ROSEMOUNT UTILITY COMMISSION FUND COMPARATIVE STATEMENT OF CHANGES IN FINANCIAL POSITION ------------------------------------------------------ For the Years Ended December 31, 1986 and 1985 WORKING CAPITAL PROVIDED BY Operations Net Income Before Transfers Items not Requiring Outlay of Working Capital Depreciation Total From Operations Transfer from Other Funds TOTAL WORKING CAPITAL PROVIDED WORKING CAPITAL APPLIED TO Acquisition of Fixed Assets Retirement of Long -Term Debt Transfer to Other Funds Transfer of Funds to Special Revenue TOTAL WORKING CAPITAL APPLIED INCREASE (DECREASE) IN WORKING CAPITAL The Increase in Working Capital is Accounted for as Follows: Cash and Investments Accounts Receivable Assessments Receivable Delinquent Taxes Receivable Allowance for Delinquent Taxes Prepaid Expenses Accounts Payable Due to Other Funds Accrued Expenses Customer Meter Deposits Compensated Absences Payable Deferred Taxes NET INCREASE IN WORKING CAPITAL -47- 1986 1985 $ 255 $ (21,826) 77,673 74,744 77,928 $ 52,918 37,165 $ 77,928 $ 90,083 $ 54,561 $ 2,147 40,000 40,000 61,441 - 679,166 - $ 835,168 $ 42,147 $ (757,240) $ 47,936 Increase(Decrease) $ (699,599) $ 37,536 2,241 (2,859) (99) 1,438 5,653 (1,722) - 4,717 - 3,485 8,346 1,294 (37,961) - 3,948 (380) 1,361 1,454 (565) 5,968 (5,653) (2,995) $ (722,328) $ 47,936 CITY OF ROSEMOUNT GENERAL FUND SCHEDULE OF REVENUES -------------------- For the Years Ended December 31, 1986 and 1985 TAXES General Property Taxes Fiscal Disparities Total Taxes LICENSES AND PERMITS ' Business Non -Business Total Licenses and Permits INTERGOVERNMENTAL REVENUE State Grants Local Government Aid Homestead Credit Police State Aid Mobile Home Other Total Intergovernmental Revenue CHARGES FOR SERVICES General Government Public Safety Highways SAC Permits Surcharge Total Charges for Services FINES AND FORFEITS County Total Fines and Forfeits MISCELLANEOUS REVENUE Interest on Investments Insurance Dividend and Refund Special Assessments Donations Rents Refunds and Reimbursements Sale of Property Total Miscellaneous Revenue TOTAL REVENUE OTHER SOURCES Transfer In Total Other Sources TOTAL REVENUE AND OTHER SOURCES mm 1986 $ 814,451 28,526 $ 842,977 $ 13,737 60,693 $ 74,430 $ 557,122 179,665 22,791 10,497 11,956 $ 782,031 SCHEDULE 1 1985 $ 537,678 20,990 $ 558,668 $ 10,915 58,880 $ 69,795 $ 549,254 123,518 19,565 5,458 29,867 $ 727,662 $ 27,971 $ 39,042 7,343 7,818 8,089 44,503 58,991 39,619 50,716 $ 153,11 X30, T9 2 $ 25,096 $ 25,096 $ 78,539 41,985 200 6,180 323,418 1,708 $ 452,030 $ 2,329,674 $ 21,216 $ 21,216 $ 99,707 530 20,502 5,628 160,716 6,277 $ 293,360 $ 1,801,683 $ 316,227 $ $ 316,227 $ - $ 2,645,901 $ 1,801,683 SCHEDULE 2-1 ' CITY OF ROSEMOUNT GENERAL FUND SCHEDULE OF EXPENDITURES - BUDGET AND ACTUAL 'For the Year EndedDecember31,!1988---- Actual (Over)Under 1985 Budget Actual Budget Actual GENERAL GOVERNMENT Mayor and Council Personal Services $ Professional Fees Other Charges Council Designated Supplies Executive Personal Services Supplies Election Personal Services Supplies Other Charges Finance Clerk -Treasurer Personal Services Supplies Other Charges Other Disbursements Finance Officer Personal Services Supplies Other Services Other Capital Outlay Planning Personal Services Other Charges Insurance General Government Buildings Supplies Other Services Other Charges Capital Outlay Total General 6,600 $ 15,181 $ (8,581) $ 11,060 32,000 22,817 9,183 70,810 10,100 4,979 5,121 21,351 306,322 35,875 270,447 50,145 3,000 - 3,000 - 93,789 94,332 (543) - 900 1,240 (340) - 7,500 4,065 3,435 2,158 1,500 2,690 (1,190) 592 400 723 (323) 69 48,942 36,290 12,652 89,544 12,300 17,840 (5,540) 30 68,000 66,898 1,102 1,087 6,000 4,175 1,825 - - - - 38,175 - - - 160 - - - 488 - - - 150 67,263 66,566 697 52,567 1,300 1,849 (549) 4,402 135,000 119,854 15,146 96,947 - - 36,781 17,925 15,069 2,856 16,540 - - 6,005 39,950 68,269 (28,319) 72,452 - 318,993 (318,993) 225,647 I Government $ 858,791 $ 897,705 $ (38,914) $ 797,160 -49- SCHEDULE 2-2 CITY OF ROSEMOUNT GENERAL FUND SCHEDULE OF.EXPENDITURES - BUDGET AND ACTUAL -------------------------------------------- For the Year Ended December 31, 1986 PUBLIC SAFETY Police Protection Personal Services Supplies Other Services Other Charges Uniforms Capital Outlay Fire Protection Personal Services Supplies Other Services Capital Outlay Building Inspector Personal Services Supplies Other Charges Total Public Safety STREETS AND HIGHWAYS General Maintenance Personal Services Supplies Other Services Other Charges Streets and Roads Other Charges Snow Removal Other Charges Traffic Signals Other Charges Street Lighting Other Charges Total Streets and Highways $ 454,670 $ 440,682 $ 13,988 $ 446,257 $ 237,535 $ 231,114 $ 6,421 $ 146,469 41,150 44,512 Actual 34,468 2,800 4,118 (Over)Under 1985 Budget Actual Budget Actual $ 322,537 $ 310,152 $ 12,385 $ 298,581 21,000 13,011 7,989 12,974 22,600 29,878 (7,278) 14,053 - - - 12,213 14,200 13,842 358 11,500 21,000 20,880 120 17,414 8,800 11,900 (3,100) 14,773 6,550 7,185 (635) 7,984 41200 1,508 2,692 10,600 31,693 30,870 823 44,811 1,100 857 243 678 990 599 391 676 $ 454,670 $ 440,682 $ 13,988 $ 446,257 $ 237,535 $ 231,114 $ 6,421 $ 146,469 41,150 44,512 (3,362) 34,468 2,800 4,118 (1,318) - - - - 1,242 53,600 50,188 3,412 39,958 1,500 4,939 (3,439) 811 - - - 6,147 29,300 29,054 246 30,230 $ 365,885 $ 363,925 $ 1,960 $ 259,325 -50- SCHEDULE 2-3 CITY OF ROSEMOUNT GENERAL FUND SCHEDULE OF EXPENDITURES - BUDGET AND ACTUAL -------------------------------------------- For the Year Ended December 31, 1986 Budget PARK AND RECREATION Actual Actual (Over)Under 1985 Budget Actual Personal Services $ 67,662 $ 67,633 $ 29 $ 108,829 Supplies 4,500 4,215 285 9,213 Other Services 8,300 15,689 (7,389) - Other Charges - - - 8,132 Capital Outlay 1,500 2,318 (818) 1,862 Total Park and Recreation $ 81,962 $ 89,855 $ (7,893) $ 128,036 REMITTANCE COLLECTED FOR OTHER AGENCIES $ - $ 66,295 $ (66,295) $ 67,206 Refunds and Reimbursements $ - $ 424,454 $ (424,454) $ 145,890 TOTAL EXPENDITURES $1,761,308 2,282,916 $ (521,608) $1,843,874 TRANSFER TO OTHER FUNDS 41.598 365.006 (323.408) 54.844 TOTAL EXPENDITURES AND TRANSFERS - OUT $1,802,906 $2,647,922 $ (845,016) $1,898,718 -51- SCSmo= 3 -52- Final Principal Interest Interest Issue Maturity Outstanding Issued Retired Outstanding Due In Due In Rates Date Date 1-1-86 1986 1986 12-31-86 1987 1987 GRORAL CBLIGAICN MES Fire Hall 5.50 - 6.10 5-75 2-86 $ 25,000 $ - $ 25,000 $ - $ - $ - Ombination IrTrovments 5.40- 6.40 5-75 2-89 100,000 - 35,000 65,000 20,000 3,965 Iprovaients Refinwce 4.75 - 6.50 5-76 2-96 480,000 - 35,000 445,000 35,000 26,055 Park 5.00 - 5.65 12-76 3-93 135,000 - 15,000 120,000 15,000 6,600 Warning System 7.25 - 8.60 2-81 2-91 80,000 - 10,000 70,000 10,000 5,405 Tax Increment 8.25- 8.90 8-81 2-91 215,000 - 30,000 185,000 - 16,325 city Hall 5.40 - 6.70 4-86 8-2002 - 1,300,000 - 1,300,000 - 109,347 Total $ 1,035,000 $ 1,300,000 $ 150,000 $ 2,185,000 $ 80,000 $ 167,697 SPE= ASSES.SMW BONDS G.O. Iuprwsrents - 1976 4.90 - 5.00 12-76 3-87 $ 40,000 $ - $ 20,000 $ 20,000 $ 20,000 $ 500 Brcback's 10-11-12 5.00 -6.25 12-75 3-88 35,000 - 10,000 25,000 10,000 1,242 South Rose Park 6.50 - 7.00 3-80 2-89 28,000 - 6,500 21,500 6,500 1,126 Rahn's 8th Addition 6.50 - 7.00 3-80 2-89 12,000 - 3,500 8,500 3,500 624 Valley Oak 5.25 - 5.80 7-80 2.92 555,252 - 74,485 480,767 80,285 26,815 ChippenUle 7.90 - 7.50 10-80 2-92 264,748 - 35,515 229,233 34,715 7,921 Carrollton Addition 7.25 - 8.60 3-81 2-87 80,000 - 40,000 40,000 40,000 1,580 O'Ieary's Hills 7.25 1-84 1-67 345,000 - 345,000 - - - White Lake Acres - 1985 6.00 - 8.20 6-85 2-96 215,000 - - 215,000 15,000 15,230 Sec 31 M*ramwnts 5.40 8-86 8-89 - 2,150,000 - 2,150,000 - 116,100 Total $ 1,575,000 $ 2,150,000 $ 535,000 $ 3,190,000 $ 210,000 $ 171,138 REVENUE BONDS Liquor - Building 7.50 - 8.75 11-80 11-89 $ 80,000 $ - $ 20,000 $ 60,000 $ 20,000 $ 5,220 Water Inpra mmnt 4.50 - 5.40 11-71 5-92 195,000 - 25,000 170,000 30,000 8,010 Water - W M #7 4.75 - 6.10 5-76 2-92 110,000 - 15,000 95,000 15,000 5,748 Total $ 385,000 $ - $ 60,000 $ 325,000 $ 65,000 $ 18,978 T07AL BONDED II .S $ 2,995,000 $ 3,450,000 $ 745,000 $ 5,700,000 $ 355,000 $ 357,813 -52- SCHEDULE 4 CITY OF ROSEMOUNT SCHEDULE OF SOURCES AND USES OF PUBLIC FUNDS FOR THE ROSEMOUNT REDEVELOPMENT PROJECT, A TAX INCREMENT FINANCING DISTRICT -------------------------------------------- December 31, 1986 SOURCES OF FUNDS Bond Proceeds Tax Increments Interest on Invested Funds Real Estate Sales Rental City of Rosemount General Fund Intergovernmental Revenue Miscellaneous TOTAL SOURCES OF FUNDS USES OF FUNDS Property Acquisition Site Improvements or Preparation Costs Bonds Payments Principal Interest Administrative Costs Other Interest Bond Issuance Costs TOTAL USES OF FUNDS DISTRICT BALANCE DISTRICT BALANCE, Beginning FUNDS REMAINING -53- Accounted Current For in Year Prior Years $ - $ 309,645 181,535 417,006 10,386 45,008 1,000 166,465 - 10,800 - 12,844 4,847 13,788 - 1,635 $ 197,768 $ 977,191 $ 86,796 $ 504,065 - 9,846 30,000 100,000 19,010 110,613 3,653 37,557 - 21,005 - 12,246 $ 139,459 $ 795,332 $ 58,309 $ 181,859 181,859 $ 240,168 $ 181,859 A 3 ECKERM4NNHEINEN&M4YER ' C E R T I F I E D P U B L I C A C C O U N T A N T S AUDITORS' REPORT ON FEDERAL REVENUE SHARING The Honorable Mayor and City Council City of Rosemount Rosemount, Minnesota We have examined the combined financial statements of the City of Rosemount, Minnesota, as of the for the year ended December 31, 1986, and have issued our report thereon dated February 24, 1987. Our examination was made in accordance with generally accepted auditing standards; the provisions of Standards for Audit of Governmental Organizations, Programs, Activities an Functions, promulgated by the U.S. Comptroller General, as they pertain to financial and compliance audits; the provisions of the Office of Management and Budget's (OMB) Compliance Supplement - Uniform Re uirements for Grants to State and Local Governments (the compliance supplement); the provisions of OMB's Circular A-102 Uniform Administrative Requirements for Grants in Aid to State and Local Governments, Attachment P, Audit Requirements, and such other auditing procedures as we considered necessary in the circumstances. In connection with the examination referred to above, a repre- sentative number of charges to federal awards were selected to determine if federal funds are being expended in accordance with the terms of applicable agreements and those provisions of federal law or regulations that could have a material effect on the financial statements or on the awards tested. The results of our tests indicate that for the items tested, the City complied with the material terms and conditions of the federal award agreements. Further, for the items not tested, based on our examination and the procedures referred to above, nothing came to our attention to indicate that the City had not complied with the significant compliance terms and conditions of the awards refer- red to above. City of Rosemount Page Two ' In connection with our examination, we also (1) performed tests of compliance with the Revenue Sharing and Antirecession Fiscal Assistance Acts and regulations as required by Sections II.C.3. and III.C.3. of the Audit Guide and Standards for Revenue Sharing ' and Antirecession Fiscal Assistance Fund Recipients (Guide) issued by the Office of Revenue Sharing, U.S. Department of the Treasury, and (2) compared the data on Bureau of Census Form RS -9 with the audited records of the City of Rosemount as required_ by Sections II.C.4. of the "Guide." Based on these procedures, we noted no instance of noncompliance with the regulations and no differences (material differences) between the data on Bureau of Census Form RS -9 and the records of the City of Rosemount for the year ended December 31, 1986. This report is intended solely for the use of the City of Rose- moun,t and should not be used for any other purpose. This res- triction is not intended to limit the distribution of this report, which is a matter of public record. I Minneapolis, Minnesota February 24, 1987 BOECKERMANN, HEINEN & MAYER Certified Public Accountants -55- L. r KB? NN HBNB V & M 4 YEN ' C E R T I F I E D P U B L I C A C C O U N T A N T S AUDITORS' REPORT ON INTERNAL CONTROL ' The Honorable Mayor and City Council City of Rosemount ' Rosemount, Minnesota We have examined the combined financial statements of the City of Rosemount, Minnesota, as of and for the year ended December 31, 1986,.and have issued our report thereon dated February 24, 1987. As part of our examination, we made a study and evaluation of the system of internal accounting control of the City to the extent we considered necessary to evaluate the system as required by generally accepted auditing standards and the standards for ' financial and compliance audits contained in the U.S. General Accounting Office's Standards for Audit of Governmental Organiza- tions, Programs, Activities and Functions. For the purpose of this report, we have classified the significant internal account- ing controls in the following categories: accounting controls and administrative controls. The purpose of our study and evaluation was to determine the nature, timing, and extent of performing the auditing procedures necessary for expressing an opinion on the entity's financial statements. Our study and evaluation was more limited than would be necessary to express an opinion on the system of internal accounting control taken as a whole or on any of the categories of controls identified above. The City is responsible for establishing and maintaining a system of internal accounting control. In fulfilling this responsibil- ity, estimates and judgments by management are required to assess the expected benefits and related costs of control procedures. The objectives of a system are to provide management with reason- able, but not absolute, assurance that assets are safeguarded against loss from unauthorized use or disposition, and that transactions are executed in accordance with generally accepted accounting principles. ' City of Rosemount Page Two Because of inherent limitations in any system of internal accounting control, errors or irregularities may nevertheless occur and not be detected. Also, projection of any evaluation of the system to future periods is subject to the risk that pro- cedures may become inadequate because of changes in conditions or that the degree of compliance with the procedures may deterior- ate. Our study and evaluation made for the limited purpose described in the first paragraph would not necessarily disclose all mater- ial weaknesses in the systema Accordingly, we do not express an opinion on the system of internal accounting control of the City taken as a whole or on any of the categories of controls identi- fied in the first paragraph. Our study and evaluation disclosed no conditions that we believe result in more than a relatively low risk that errors or irregularities in amounts that would be material in relation to the financial statements of the City may occur and not be detected within a timely period except as dis- closed in the Supplementary Comments to the Auditor's Reports on Compliance and Internal Control. - These conditions were considered in determining the nature, tim- ing, and extent of the audit tests to be applied in our examina- tion of the 1986 financial statements, and this report does not affect our report on the financial statements dated February 24, 1987. This report is intended solely for the use of the City, state agencies, the federal cognizant audit agency and other federal agencies and should not be used for any other purpose. Minneapolis, Minnesota February 24, 1987 BOECKERMANN, HEINEN & MAYERaY&� Certified Public Accountants -57- BOECI HBNBV&M4YEJ? C E R T I F I E D P U B L I C A C C O U N T A N T S AUDITORS' REPORT ON COMPLIANCE The Honorable Mayor and City Council City of Rosemount Rosemount, Minnesota We have examined the combined financial statements of the City of Rosemount, Minnesota, as of and for the year ended December 31, 1986, and have issued our report thereon dated February 24, 1987. Our examination was made in accordance with generally accepted auditing standards; the provisions of the Legal Com- pliance Audit Guide promulgated by the Legal Compliance Task Force pursuant to Minnesota Statutes Sec. 6.65. Accordingly, the examination included such tests of the accounting records and such other auditing procedures as we considered necessary in the circumstances. The Legal Compliance Audit Guide covers five main categories of compliance to be tested: contracting and bidding, deposits and investments, conflicts of interest, public indebtedness, and claims and disbursements. Our study included all of the listed categories. The results of our tests indicate that for the items tested, the City complied with the material terms and conditions of applicable legal provisions, except as described in the Sup- plementary Comments to Auditors' Reports on Compliance and Inter- nal Control. Further, for the items not tested, based on our examination and the procedures referred to above, nothing came to our attention to indicate that the City had not complied with such legal provisions. This report is intended solely for the use of the City and should not be used for any other purpose. This restriction is not intended to limit the distribution of this report, which is a matter of public record. BOECKERMANN, HEINEN & MAYER Certified Public Accountants Minneapolis, Minnesota February 24, 1987 CITY OF ROSEMOUNT SUPPLEMENTARY COMMENTS TO AUDITORS' REPORTS ON COMPLIANCE AND INTERNAL CONTROL ------------------------------------------ BUDGETING PROCESS Generally accepted accounting principles require that budgets be prepared for special revenue funds. You currently do not for- mally budget the special revenue funds. We recommend that bud- gets be adopted annually for all special revenue funds. This will provide you with budgetary control of special revenue fund expenditures, and we will be able to remove our qualification from our audit opinion. -59-