Transcript CITY OF STEWARTVILLE - St. Charles, Minnesota

CITY OF ST. CHARLES
Financial Summary - 2006
1
Audit

Audit Opinion
•
•

Financial Statements
•
•

No Exceptions
Single Audit
•

Smith Schafer reviewed the results of the audit and the financial statements
with the Mayor, Deputy Clerk and the Accountant on April 13
Management’s Discussion and Analysis (MD&A) was prepared by the City
Minnesota Legal Compliance
•

Provides reasonable, but not absolute, assurance that financials are free of
material misstatement
Unqualified “Clean” opinion in 2006
None required in 2006
Management Letter
•
Limited personnel – Limit City’s ability to segregate accounting duties
2
Revenues
Governmental Funds
3
General Property Tax Levy
$700,000

General tax levy revenues
represented 27% of total
governmental revenues in 2006

Tax collections
Market value credit
Total 2006
$585,486
$600,000
$543,826
$512,450
$500,000
$400,000
$504,402
81,084
$585,486
$300,000
$200,000
$100,000
$0
1998
1999
2000
General Tax Levy
2001
2002
2003
2004
2005
2006
Market Value Credit
4
Tax Increment Revenues
$200,000

Total TIF collections in
2006 were $141,491

TIF debt service payments
and advance repayment
requirements are
approximately $90,000
annually

TIF collections are
impacted by County
valuations and the
commercial property tax
rates set by the State
$175,000
$141,491
$150,000
$118,565
$125,000
$110,227
$100,000
$85,408
$76,999 $69,314
$74,865
$75,000
$83,470
$82,485
$50,000
$25,000
$0
1998
1999
2000
2001
2002
2003
2004
2005
2006
5
LGA and HACA Revenues
$800,000

Local government aid
(LGA) & Homestead Aid
Credit (HACA) are based
on State formulas

LGA represented 29% of
governmental revenues in
2006

LGA increased by $73,587
(13%) from 2005 to 2006

HACA was eliminated in
2002
$625,089
$618,740
$600,000
$551,502
$501,618
$501,618
$400,000
$200,000
$0
1997
1998
1999
HACA
2000
2001
2002
2003
2004
2005
2006
LGA
6
Governmental Fund Revenues
$700,000
$600,000
$500,000
$400,000
$300,000
$200,000
$100,000
$0
1997
1998
1999
2000
2001
2002
2003
2004
Tax Increment
Investment Income
Charges for Services
General Property Tax Levy
2005
2006
LGA/HACA
7
Property Taxes and State Aid
$1,250,000
$1,000,000
$750,000
$500,000
$250,000
44%
41%
40%
42%
34%
41%
41%
43%
$0
1999
2000
2001
General Property Taxes (Taxpayers)
2002
2003
LGA/HACA (State)
2004
2005
2006
Market Value Credit (State)
8
Expenditures
Governmental Funds
9
General Governmental Expenditures
$400,000

Includes mayor and
council, city hall,
accounting, assessor,
elections, advertising,
building inspections and
celebration costs

Increase of $48,691 in
2006 was due to a lack of
full time staff in 2005.

Higher costs of building
inspections beginning
2001
$347,623
$350,000
$293,267 $298,932
$300,000
$247,680
$250,000
$237,305
$206,057
$200,000
$159,574
$165,215
$175,105 $174,753
$150,000
$100,000
$50,000
$0
1997
1998
1999
2000
2001
2002
2003
2004
2005
2006
10
Public Safety Expenditures
$800,000

Includes police
department, fire
protection, ambulance
and the emergency
management services
fund

Totaled $701,179 in
2006, including
$210,915 in capital
outlay

Increase in 2006 due
to purchase of Volk
property and
ambulance
$700,000
$600,000
$500,000
$400,000
$300,000
$200,000
$100,000
$0
1997
1998
1999
2000
Other Expenditures
2001
2002
2003
2004
2005
2006
Capital Outlay
11
Public Safety Expenditures
$300,000
$277,827

Police protection
expenditures increased by
$37,240 in 2006

Ambulance expenditures
include $49,748 of capital
outlay in 2006 related to the
purchase of an ambulance

Fire expenditures of $71,562
in 2006 were supported by
township contracts of
$36,174 and other revenues
of $20,055 (City transfer in of
$46,559 – not included in
chart)
$250,000
$200,000
$161,628
$143,306
$150,000
$136,328
$100,000
$71,562
$56,233
$50,000
$16,068
$13,196
$0
Police
Revenues
Fire
Ambulance
Emergency
Management
Services
Expenditures
12
Public Works
$300,000

Salaries/benefits,
repairs and
maintenance, supplies,
fuel, and insurance

Expenditures increased
by $43,571 in 2006 due
to the addition of one full
time employee and full
time administrative staff
$250,000
$217,214
$200,000
$178,630 $178,619
$155,783
$150,000
$134,405
$161,581
$156,921
$173,643
$163,196
$137,602
$100,000
$50,000
$0
1997 1998 1999 2000 2001 2002 2003 2004 2005 2006
13
Parks and Recreation
$400,000

Recreation programs,
parks, swimming pool,
forestry and the senior
center (including capital
project fund
expenditures)

Expenditures totaled
$346,074 in 2006 an
increase of $27,261 from
2005 due to an increase
in salaries and repairs to
the swimming pool boiler
$350,000
$300,000
$250,000
$200,000
$150,000
$100,000
$50,000
$0
1997 1998 1999 2000 2001 2002 2003 2004 2005 2006
Other Expenditures
Capital Outlay
14
Park and Recreation Expenditures
$200,000

Revenue
$175,000
Expenditures
$147,239
$150,000
$125,000
$116,843
$100,000
$83,631
$75,000
$61,756
$50,000
Park and
recreation
expenditures in
excess of program
revenues are
supported by the
City’s general
revenues including
property taxes and
local government
aid
$38,745
$25,000
$9,446
$6,790
$4,394
$4,000
$0
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15
Library Expenditures
$200,000

Salaries and benefits,
books, supplies,
insurance, utilities,
printing, etc… (including
capital project fund
expenditures)
$125,000

Totaled $133,585 in 2006
$100,000

Received library aid
during 2006 from Winona
County and Olmsted
County totaling $26,950
and a grant from the state
of $63,600

Excludes capital outlay
related to the addition to
the library in 2003-2005
totaling $676,333
$175,000
$150,000
$75,000
$50,000
$25,000
$0
1997
1998
1999
2000
Other Expenditures
2001
2002
2003
2004
2005
2006
Capital outlay
16
Economic Development Expenditures
$200,000

Economic
development
expenditures in 2006
included $29,000 in
revolving loans and
professional services
of $20,519

2002 included the
$126,000 loan to HBC
(mortgage on old City
Hall building)
$172,110
$175,000
$150,000
$129,028
$125,000
$120,617
$97,781
$100,000
$70,938
$75,000
$75,208
$51,069
$50,000
$31,395
$33,822
$25,000
$5,599
$0
1997 1998 1999 2000 2001 2002 2003 2004 2005 2006
17
Governmental Fund Expenditures
$800,000
$700,000
$600,000
$500,000
$400,000
$300,000
$200,000
$100,000
$0
1998
Library
1999
2000
Parks and Recreation
2001
2002
General Government
2003
2004
Public Works
2005
2006
Public Safety
18
Reserves
19
General Fund - Reserves
$1,400,000

Unreserved General Fund
balance as a % of
expenditures
• 2006
30%
• 2005
68%
• 2004
60%
• 2003
62%
• 2002
65%
• 2001
62%
• 2000
69%
• 1999
71%
• 1998
80%

Decrease in fund balance
due to transfer for:
$1,215,650
$1,200,000
$1,145,739
$1,066,386
$969,990
$1,000,000
$969,709
$998,727
$888,506
$827,222
$800,000
$769,774
$584,105 $613,708
$600,000
$599,455
$627,122
$659,176
$686,782
$683,060
$616,656
$400,000
$360,890
$200,000
$0
1998
1999
2000
2001
Unreserved Fund Balance
2002
2003
2004
2005
2006
Library
$136,813
EMS
32,000
TIF
63,431
Parkland
Dedication
55,250
Total Expenditures
20
Economic Development Fund - Fund Balance
$150,000
$135,037

Provides economic
development loans to
local businesses

Outstanding principal
receivable on economic
development loans at
12/31/06 $242,920

Borrowed $126,000
from the Electric Fund
for Loan to HBC in 2002
$125,000
$100,000
$82,197
$72,830
$75,000
$66,507
$50,000
$25,000 $16,455
$9,932
$0
($15,110)
-$25,000
($24,239)
($23,256)
-$50,000
($54,943)
-$75,000
-$100,000
1997
1998
1999
2000
2001
2002
2003
2004
2005
2006
21
Library Fund - Fund Balance
$300,000
$273,951
$237,766

Deficit fund balance in
2004 and 2005
resulting from
construction was
eliminated in 2006 with
transfers from the
General Fund of
$136,813 and Capital
Improvement Fund of
$240,000

Pledges receivable
totaled $4,168 at
12/31/06
$235,259
$200,000
$100,000
$102,857
$126,661
$114,508
$135,119
$28,547
$0
-$100,000
($162,360)
-$200,000
-$300,000
($348,428)
-$400,000
1997
1998
1999
2000
2001
2002
2003
2004
2005
2006
22
Volunteer Fire Fund - Fund Balance
$250,000

Funds received in 2006:
• City
$46,559
• Townships 36,174
• Fire calls
6,461
• Interest
4,797
• Donations
8,797

Builds fund balance in
anticipation of equipment
needs

Transferred $64,000 to
the EMS fund for the
purchase of a building
$222,464
$200,000
$164,755
$159,809
$150,000
$131,464
$116,985
$117,147
$100,000
$101,915
$100,409
$50,000
$11,477
$0
($38,334)
-$50,000
1997
1998
1999
2000
2001
2002
2003
2004
2005
2006
23
Advertising Fund - Fund Balance
$60,000
$40,000
$20,000
$11,475
$6,775
$5,197
$6,468

Funds used for City
promotion/Fireworks

Levied $8,000 in the
Advertising fund and
transferred in
$12,850 from the
Library Fund in 2006
$2,366
$0
($3,577)
($3,755)
-$20,000
($2,621)
($17,477)
($20,435)
-$40,000
1997
1998
1999
2000
2001
2002
2003
2004
2005
2006
24
Celebration Fund - Fund Balance
$60,000

Funds used for annual
flowerfest celebration

Revenues exceeded
expenditures by $1,542
during 2006

Levied $3,000 in the
Celebration fund

Levied $15,000 in the
Celebration fund in 2007
$40,000
$20,000
$1,258 $2,115 $1,764 $2,070
$0
$3,678
$258
($4,638)
($8,012)
($11,832) ($10,290)
-$20,000
1997 1998 1999 2000 2001 2002 2003 2004 2005 2006
25
Ambulance Fund - Fund Balance
$250,000

Ambulance revenues
increased to $143,306
in 2006 from $123,746
in 2005

New capital lease of
ambulance vehicle in
2006 totaling $48,300

Transferred $64,000 to
the EMS fund for the
purchase of a building
$200,000
$179,764
$166,880
$160,404
$158,237
$150,000
$130,837
$100,000
$87,876
$50,000
$45,608
$41,021
$0
1999
2000
2001
2002
2003
2004
2005
2006
26
Emergency Management Services Fund - Fund Balance
$100,000

New fund established in
2006 to account for the
purchase of the Volk
property

The plan is to transfer
$150,000 into this fund
annually through 2012
$75,000
$50,000
$26,568
$25,000
$0
2004
2005
2006
27
Debt Service
28
General Obligation Bonds
$2,000,000
$1,785,000
$1,785,000

GO Bonds Outstanding:
•
$1,750,000
•
$1,500,000
$1,250,000

$1,000,000
Water Impr Bond of
1983
Street Impr Bond of
2005
Supported by property
taxes and fund balance
reserve of $202,912
$750,000
$500,000
$412,000
$389,000
$355,000
$355,000
$296,000
$264,000
$250,000
$230,000
$195,000
$0
1999
2000
2001
2002
2003
2004
2005
2006
Water Impr Bonds of 1983
Street Impr Bonds of 2005
29
Tax Increment Bonds
$700,000
$665,000
$665,000
$635,000

TIF Bonds are
supported by
increments on TIF
property

First principal
payment on TIF
Refunding Bond of
2004 was made as
due in 2006

TIF Bonds of 1996
were paid in full in
2005 with proceeds of
2004 Refunding Bond
proceeds
$605,000
$600,000
$575,000
$540,000
$500,000
$465,000
$465,000
$425,000
$400,000
$300,000
$200,000
$100,000
$0
1999
2000
2001
2002
2003
2004
2005
2006
Tax Increment Bond of 1996
Refunding Tax Increment Bond of 2004
30
General Obligation Revenue Bonds
$4,000,000

Revenue Bonds are
supported by Utility Fund
ratepayers.

GO Water and Sewer
Revenue Bonds of 2002
balance at 12/31/06 was
$805,000

GO Water and Sewer
Revenue Bonds of 2004
balance at 12/31/06 was
$1,005,000

GO Electric Revenue Bonds
of 1997 balance at 12/31/06
was $30,000

GO Electric Revenue Bonds
of 2004 balance at 12/31/06
was $3,435,000
$3,500,000
$3,000,000
$2,500,000
$2,000,000
$1,500,000
$1,000,000
$500,000
$0
2001
2002
2003
2004
2005
Water and Sewer Revenue Bonds of 2002
Water and Sewer Revenue Bonds of 2004
2006
Electric Revenue Bonds of 1997
Electric Revenue Bonds of 2004
31
Other Long-Term Debt
$300,000

Fire Truck Loan payments
due through 2013

New Ambulance Capital
Lease in 2006
$250,000
$200,000
$150,000
$100,000
$100,000
$91,907
$83,452
$74,594
$44,634
$50,000
$0
1999
2000
2001
2002
2003
2004
2005
2006
Fire Truck Loan
Ambulance Capital Lease
2006 Ambulance Capital Lease
32
5 Year Debt Service Requirements
$1,000,000

$800,000
Includes both principal
and interest
$600,000
$400,000
$200,000
$0
2007
2008
2009
2010
2011
Notes payable
GO Bonds
GO TIF Bonds
GO Revenue Bonds
33
Capital Projects
34
Capital Projects Funds - Expenditures
$2,000,000

$1,500,000
Major capital improvements
in 2006 totaled $357,309
and consisted of:
•
•
$1,000,000
•
•
•
$500,000
•
•
•
Skate park $30,000
St. Charles welcome
sign $15,556
Street project $76,306
Disc golf course $6,019
Playground equipment
$52,863
Park bridges $35,978
Bike trail $45,040
Police car $20,774
$0
1997
1998
1999
2000
Capital Improvements
2001
2002
2003
2004
2005
2006
Tax Increment
35
Capital Improvement Fund - Fund Balance
$800,000
$700,000
$643,749

Funded through
property taxes,
donations, and interest

Transferred $240,000
to the Library fund
$591,549
$600,000
$500,000
$408,044
$400,000
$338,046
$310,069
$300,000
$268,985
$218,722
$206,269
$204,917
$200,000
$100,000
$0
1998
1999
2000
2001
2002
2003
2004
2005
2006
36
TIF Capital Improvement Fund - Fund Balance
$500,000

TIF #5, borrowed from
utilities and capital
improvements funds for
White Water Industrial
Park infrastructure

TIF #3 (Whitewater Apts.)
has a $178,829 deficit

Expected TIF #5
(Whitewater Park)
increment collections
increased to $26,460 in
2006 from $22,528 in
2005

TIF #6 (Mike’s Food
Center) established in
2005
$387,250
$400,000
$310,541
$300,000
$200,000
$100,000
$24,253
$21,871
$6,032
$0
$7,720
-$4,772
-$6,282
-$100,000
($159,179)
-$200,000
($178,829)
($202,480)
($177,630)
-$300,000
2005
TIF #1
TIF #2
2006
TIF #3
TIF #4
TIF #5
TIF #6
37
Operational Trends
Utility Funds
38
Electric Fund
$2,250,000

Electric service is
supported by
ratepayers

Transfers out to the
City General fund of
$130,000 in 2006

Purchase power
decrease in 2005 is
due in part to the
elimination of the
demand charge
$2,000,000
$1,750,000
$1,500,000
$1,250,000
$1,000,000
$750,000
$500,000
$250,000
$0
1998
1999
2000
2001
2002
2003
2004
2005
Net Operating Revenues
Purchased Power
Operating Expenses
Net Income Before Transfers
2006
39
Electric Fund
$4,000,000

Cash and investments
totaled $244,377 at
12/31/06, while bonds
outstanding totaled
$3,465,000

Issued bond in 2004
totaling $3,760,000 for
the generation project
and other electric
system improvements

Advanced $126,000 to
Economic
Development for
purchase of old City
Hall Building in 2002
$3,500,000
$3,000,000
$2,500,000
$2,000,000
$1,500,000
$1,000,000
$500,000
$0
1997
1998
1999
2000
Cash and Investments
2001
2002
2003
2004
2005
2006
Bonds Payable
40
Water Fund
$500,000

Water service
supported by
ratepayers

Base rate increased
from $9.00 to $9.45
per user

Revenues totaled
$322,133 in 2006

In lieu of tax payment
to the City General
fund of $20,000 in
2006
$400,000
$300,000
$200,000
$100,000
$0
1998
1999
2000
2001
2002
2003
2004
2005
2006
Net Operating Revenues
Operating Expenses
Nonoperating Revenue (Excl Cap Contr)
Interest Expense
Net Income Before Transfers and Capital Contr
41
Water Fund
$1,200,000

Should develop cash
reserves to be used for
future capital replacement

In 2004 added $777,350 of
the $1,205,000 GO Utility
Revenue Bond of 2004 that
was used for water tower
improvements and water
extensions

In 2002 added $349,800 of
the $1,060,000 GO Utility
Revenue Bonds of 2002
that was used for water
construction costs
$1,000,000
$800,000
$600,000
$400,000
$200,000
$0
1998
1999
2000
2001
Cash and Investments
2002
2003
2004
2005
2006
Bonds Payable
42
Sewer Fund
$700,000

Sewer service
supported by
ratepayers

Substantial expansion
of the Dover Eyota
Sanitary Sewer District
is under consideration
$600,000
$500,000
$400,000
$300,000
$200,000
$100,000
$0
-$100,000
1998
1999
2000
2001
2002
2003
2004
2005
2006
Revenues
Operating Expenses
Nonoperating Income (Excl Cap Contr)
Net Income Before Transfers and Capital Contributions
43
Sewer Fund
$1,200,000

Should develop cash
reserves to be used for
future capital replacement

Issued $427,650 of the
$1,205,000 GO Utility
Revenue Bonds of 2004
that was used for sewer
extensions and sewer
system improvements

Issued $710,200 of the
$1,060,000 GO Utility
Revenue Bonds of 2002
that was used for sewer
construction costs
$1,000,000
$800,000
$600,000
$400,000
$200,000
$0
1998 1999 2000 2001 2002 2003 2004 2005 2006
Cash and Investments
Bonds Payable
44
Storm Water Fund
$100,000

Fund was established
in 2004
$75,000

Storm water activities
are supported by
ratepayers
$50,000
$25,000
$0
2004
2005
2006
Revenues
Operating Expenses
Net Income Before Transfers and Capital Contributions
45
Storm Water Fund
$50,000

Fees generated in 2004 were
expended on capital assets

No debt at 12/31/06

Cash balance of $72 at
12/31/06

Improvements of $66,000,
$35,000 contributed capital
and $31,000 spent on storm
water management projects
$40,000
$30,000
$20,000
$10,000
$0
2004
2005
Cash and Investments
2006
Bonds Payable
46
Waste Management Fund-Fund Balance
$100,000

Collected refuse fees of
$128,394 and paid out
$149,640 for hauling and
other costs in 2006

Uses excess revenue from
hauling services for City
cleanup day and
maintenance of City
compost site

Reclassified from a special
revenue fund to an
enterprise fund in 2006

Reduction is the result of a
catchup billing from Waste
Management
$80,000
$60,000
$40,000
$30,334
$25,596
$27,566
$18,594 $17,875
$19,231
$20,000
$28,582
$15,962
$9,954
$8,494
$0
1997
1998
1999 2000
2001
2002
2003 2004
2005
2006
47
Summary

General Fund reserves equal 30% of annual general fund expenditures

Ambulance and Fire Funds are building reserves to finance equipment
needs and meet debt service requirements

Capital Improvement fund balance of $244,011

TIF #3 (Whitewater Apts.) owes TIF #2 (Central Business District) $178,829

TIF #5 (Whitewater Park) Capital Improvement is repaying $153,000 in
advances with tax increment receipts

All debt service funds are being adequately funded and all outstanding
bonds are being paid on a timely basis

Utility Fund revenues continue to keep pace with rising costs, however
cash reserves are minimal and substantial debt has been added since
2002.
48