Transcript CITY OF STEWARTVILLE - City of St. Charles Minnesota

CITY OF ST. CHARLES
Financial Summary - 2007
1
Audit

Audit Opinion
•
•

Financial Statements
•
•

None required in 2007
Management Letter
•
•
•

No Exceptions
Single Audit
•

Smith Schafer reviewed the results of the audit and the financial statements with the
Mayor, City Administrator, Council Member Getz and the Accountant on April 11, 2008
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 2007
Small number of personnel – Limits City’s ability to segregate accounting duties
Fund balance policy – City should adopt policy for reserves
Information technology – City should evaluate effectiveness of access controls
Audit Committee Letter
2
Revenues
Governmental Funds
3
General Property Tax Levy
$700,000
$600,000

General tax levy
revenues represented
23% of total
governmental revenues
in 2007

The general tax levy is
reported net of the
market value credit paid
by the State
$564,871
$510,849
$500,000
$445,801
$378,290
$391,596
$400,000
$468,986
$413,078
$374,226
$332,949 $343,960
$300,000
$200,000
$100,000
$0
1998
1999
2000
2001
2002
2003
2004
2005
2006
2007
General Tax Levy
4
Tax Increment Revenues
$200,000

Total TIF collections in
2007 were $144,493

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
$144,493
$141,491
$150,000
$118,565
$125,000
$110,227
$100,000
$85,408
$75,000
$83,470
$82,485
$74,865
$76,999
$69,314
$50,000
$25,000
$0
1998 1999 2000 2001 2002 2003 2004 2005 2006 2007
5
LGA, HACA and Market Value Revenues
$800,000
$765,141

Local government aid
(LGA) & Homestead Aid
Credit (HACA) are based
on State formulas

LGA represented 28% of
governmental revenues in
2007

LGA increased by $57,850
(9%) from 2006 to 2007

Market value credit totaled
$82,202 in 2007

HACA was eliminated in
2002 and replaced with
Market Value Credit
$706,173
$685,484
$571,256
$628,059
$571,205
$600,000
$400,000
$200,000
$0
1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007
HACA
LGA
Market Value Credit
6
Governmental Fund Revenues
$800,000
$700,000
$600,000
$500,000
$400,000
$300,000
$200,000
$100,000
$0
1998
1999
2000
2001
2002
2003
2004
2005
2006
Tax Increment
Investment Income
Charges for Services
General Property Tax Levy
2007
LGA/HACA/MVC
7
Property Taxes and State Aid
$1,500,000
$1,000,000
$500,000
41%
40%
42%
35%
42%
2002
2003
44%
43%
2004
2005
42%
42%
2006
2007
$0
1999
2000
2001
General Property Taxes (Taxpayers)
LGA/HACA (State)
Market Value Credit (State)
8
Expenditures
Governmental Funds
9
General Governmental Expenditures
$400,000
$358,285

Includes mayor and
council, city hall,
accounting, assessor,
elections, advertising,
building inspections and
celebration costs

Increase of $10,662 in
2007 was primarily due to
higher legal costs

Higher costs of building
inspections beginning in
2001
$347,623
$350,000
$293,267 $298,932
$300,000
$247,680
$250,000
$237,305
$206,057
$200,000
$165,215
$175,105 $174,753
$150,000
$100,000
$50,000
$0
1998
1999
2000
2001
2002
2003
2004
2005
2006
2007
10
Public Safety Expenditures
$800,000
Purchased
Ambulance
and Volk
Property
$700,000

Includes police
department, fire
protection, ambulance
and the emergency
management services
fund

Totaled $553,367 in 2007,
including $23,378 in
capital outlay

In 2005, expenses
decreased due to a police
officer position that was
vacant for the year
$600,000
$500,000
$400,000
$300,000
$200,000
$100,000
$0
1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007
Other Expenditures
Capital Outlay
11
Public Safety Revenues and Expenditures
$350,000
$332,265

Police protection
expenditures increased by
$54,438 in 2007

Ambulance expenditures
include $17,054 of capital
outlay in 2007

Fire expenditures of $90,110
in 2007 were supported by
township contracts of
$24,687 and other revenues
of $45,389 (City transfer in of
$47,139 – not included in
chart)
$300,000
$250,000
$200,000
$153,534
$150,000
$90,110
$100,000
$105,896
$70,079
$40,545
$50,000
$14,969 $342
$0
Police
Revenues
Fire
Ambulance
Emergency
Management
Services
Expenditures
12
Public Works
$300,000
$264,503

Salaries/benefits,
repairs and
maintenance, supplies,
fuel, and insurance

Expenditures increased
by $47,289 in 2007 due
to higher costs for street
repairs and flood related
costs
$250,000
$217,214
$200,000
$155,783
$150,000
$134,405
$178,630 $178,619
$173,643
$161,581
$163,196
$156,921
$137,602
$100,000
$50,000
$0
1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007
13
Parks and Recreation
$400,000
$361,904
$350,000

Recreation programs,
parks, swimming pool,
forestry and the senior
center (including capital
project fund
expenditures)

Expenditures totaled
$355,772 in 2007 an
increase of $10,698 from
2006 due to an increase
in salaries for the
swimming pool and parks
and also for flood related
costs
$355,772
$345,960
$318,509
$300,000
$250,000
$200,000
$150,000
$100,000
$50,000
$0
1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007
Other Expenditures
Capital Outlay
14
Park and Recreation Expenditures
$200,000

Park and
recreation
expenditures in
excess of program
revenues are
supported by the
City’s general
revenues including
property taxes and
local government
aid

Swimming pool
attendance
increased to
20,607 in 2007
from 19,380 in
2006
Revenue
$175,000
Expenditures
$150,000
$140,547
$125,616
$125,000
$100,000
$90,257
$75,000
$50,000
$68,892
$38,765
$25,000
$9,628
$11,089
$5,635
$0
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15
Library Expenditures
$200,000

Salaries and benefits,
books, supplies,
insurance, utilities,
printing, etc… (including
capital project fund
expenditures)

Expenditures totaled
$137,465 in 2007

Received library aid
during 2007 from Winona
County and Olmsted
County totaling $29,083

Excludes capital outlay
related to the addition to
the library in 2003-2005
totaling $676,333
$175,000
$150,000
$125,000
$100,000
$75,000
$50,000
$25,000
$0
1998
1999
2000
2001
Other Expenditures
2002
2003
2004
2005
2006
2007
Capital outlay
16
Economic Development Expenditures
$200,000

Economic development
expenditures in 2007
professional services of
$21,687

In 2007, includes costs
for City of St Charles
sign of $15,716

In 2002, included the
$126,000 loan to HBC
(mortgage on old City
Hall building)
$172,110
$175,000
$150,000
$129,028
$125,000
$97,781
$100,000
$75,208
$70,938
$75,000
$51,069
$50,000
$31,395
$33,822
$41,794
$25,000
$5,599
$0
1998 1999 2000 2001 2002 2003 2004 2005 2006 2007
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
2003
General Government
2004
Public Works
2005
2006
2007
Public Safety
18
Reserves
19
General Fund - Reserves
$1,400,000
$1,300,097
$1,215,650
$1,200,000
$1,145,739
$1,066,386
$969,990
$1,000,000
$998,727
$969,709
$888,506
$827,222
$800,000
$613,708
$600,000
$599,455
$627,122
$659,176
$686,782
$683,060
$584,105
$422,481
$400,000
$360,890

Unreserved General
Fund balance as a %
of expenditures
• 2007
32%
• 2006
30%
• 2005
68%
• 2004
60%
• 2003
62%
• 2002
65%
• 2001
62%
• 2000
69%
• 1999
71%
$200,000
$0
1999
2000
2001
2002
Unreserved Fund Balance
2003
2004
2005
2006
2007
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
12/31/07 $75,820

Borrowed $126,000 from
the Electric Fund for Loan
to HBC in 2002

HBC loan paid off in 2007
$125,000
$100,000
$81,081
$82,197
$75,000
$66,507
$72,830
$50,000
$25,000
$9,932
$0
($15,110)
-$25,000
($23,256)
($24,239)
-$50,000
($54,943)
-$75,000
-$100,000
1998
1999
2000
2001
2002
2003
2004
2005
2006
2007
21
Library Fund - Fund Balance
$300,000
$273,951
$237,766

Operated at a deficit of
$25,410 in 2007

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
$235,259
$200,000
$100,000
$102,857
$135,119
$126,661
$114,508
$28,547
$3,137
$0
-$100,000
($162,360)
-$200,000
-$300,000
($348,428)
-$400,000
1997
1998
1999
2000
2001
2002
2003
2004
2005
2006
2007
22
Volunteer Fire Fund - Fund Balance
$250,000

Funds received in 2007:
• City
$47,139
• Townships
24,687
• Fire calls
9,229
• Interest
5,524
• FEMA grant
2,287
• DNR grant
4,930
• Donations
23,419

Builds fund balance in
anticipation of equipment
needs

Saratoga Township owes
$22,092 for services in 2007
and 2006

Transferred $50,000 to the
EMS fund in 2007 and 2006
$222,464
$200,000
$164,755
$159,809
$150,000
$131,464
$117,147
$100,000
$100,409
$116,985
$101,915
$81,377
$50,000
$11,477
$0
-$50,000
($38,334)
1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007
23
Advertising Fund - Fund Balance
$60,000

Funds used for City
promotion/Fireworks

Increased levy from
$8,150 in 2006 to
$16,843 in 2007
$40,000
$20,000
$11,475
$6,775
$5,197 $6,468
$6,976
$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
2007
24
Celebration Fund - Fund Balance
$60,000

Funds used for annual
flowerfest celebration

Revenues exceeded
expenditures by $7,208
during 2007

Levied $15,641 in the
Celebration fund in 2007

Revenues decrease in
2007 due to the
negative impact of the
flood on attendance
$40,000
$20,000
$1,258$2,115 $1,764 $2,070
$0
$3,678
$258
($3,082)
($4,638)
($8,012)
($11,832)($10,290)
-$20,000
1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007
25
Ambulance Fund - Fund Balance
$250,000

Ambulance revenues
increased to $153,534 in
2007 from $143,306 in 2006

New capital lease of
ambulance vehicle in 2006
totaling $48,300

Transferred $50,000 to
EMS fund in 2007 and 2006

Base rate for run is $325 for
2007

Number of ambulance runs:
$200,000
$179,764
$166,880
$160,404 $158,237
$145,548
$150,000
$130,837
$100,000
$87,876
$50,000
$45,608
$41,021
$0
1999
2000
2001
2002
2003
2004
2005
2006
2007
•
•
•
•
•
2007
2006
2005
2004
2003
290
266
248
230
238
26
Emergency Management Services Fund - Fund Balance
$200,000
$191,195

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
$150,000
$100,000
$50,000
$26,568
$0
2004
2005
2006
2007
27
Debt Service
28
General Obligation Bonds
$2,000,000
$1,785,000
$1,785,000

$1,690,000
$1,750,000
GO Bonds
Outstanding:
•
$1,500,000
•
Water Impr Bond
of 1983
Street Impr Bond
of 2005
$1,250,000

$1,000,000
$750,000
$500,000
$389,000
$355,000
Supported by
property taxes and
fund balance
reserve of $228,652
$355,000
$296,000
$264,000 $230,000
$195,000
$250,000
$158,000
$0
2000
2001
2002
2003
2004
2005
2006
2007
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
$385,000
$400,000
$300,000
$200,000
$100,000
$0
1999
2000
2001
2002
2003
2004
2005
2006
2007
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 12/31/07 was
$705,000

GO Water and Sewer
Revenue Bonds of 2004
balance at 12/31/07 was
$890,000

GO Electric Revenue Bonds
of 2004 balance at 12/31/07
was $3,305,000

GO Electric Revenue Bonds
of 1997 balance was paid off
in 2007
$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
2006
Water and Sewer Revenue Bonds of 2002
Water and Sewer Revenue Bonds of 2004
2007
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
$91,907
$100,000
$83,452
$74,594
$65,326
$46,324
$50,000
$0
$44,634
$32,901
$29,930
$0$0
$0$0
$0
2000
2001
2002
2003
2004
2005
2006
2007
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
2008
2009
2010
2011
2012
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 2007 totaled $302,505
and consisted of:
•
•
•
$1,000,000
•
•
$500,000
•
•
JD mower $13,313
Dump truck $137,457
Fencing at ballparks
$24,689
Blacktop $72,993
City Hall alarm system
and locks $25,331
Park bridges $4,760
Street shop siding
$6,805
$0
1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007
Capital Improvements
Tax Increment
35
Capital Improvement Fund - Fund Balance
$800,000
$700,000 $643,749

Funded through
property taxes,
donations, and interest

Transferred $50,000 to
the EMS fund in 2007
$591,549
$600,000
$500,000
$408,044
$400,000
$338,046
$310,069
$300,000
$268,985
$218,722
$206,269
$182,386
$204,917
$200,000
$100,000
$0
1998
1999
2000
2001
2002
2003
2004
2005
2006
2007
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.)
received a transfer from
TIF #2 of $179,187

Expected TIF #5
(Whitewater Park)
increment collections
increased to $30,442 in
2006 from $26,460 in
2006

TIF #6 (Mike’s Food
Center) established in
2005
$387,250
$400,000
$310,541
$286,809
$300,000
$200,000
$100,000
$24,253
$21,871
$6,032
$0
$4,926
$7,720
($4,772)
($6,282)
$8,915
($3,935)
($4,978)
-$100,000
-$200,000
($148,465)
($159,179)
($202,480)
($178,829) ($177,630)
-$300,000
2005
TIF #1
2006
TIF #2
TIF #3
TIF #4
2007
TIF #5
TIF #6
37
Operational Trends
Utility Funds
38
Electric Fund
$3,000,000

Electric service is
supported by
ratepayers

Transfers out to the
City General fund of
$110,000 in 2007

Purchase power
increase in 2007 is
due in part to an
increase in
purchase power
rates
$2,500,000
$2,000,000
$1,500,000
$1,000,000
$500,000
$0
1998 1999 2000 2001 2002 2003 2004 2005 2006 2007
Net Operating Revenues
Purchased Power
Operating Expenses
Net Income Before Transfers and Capital Contr
39
Electric Fund
$4,000,000

Cash and
investments totaled
$403,688 at
12/31/07, while
bonds outstanding
totaled $3,305,000

Issued bond in 2004
totaling $3,760,000
for the generation
project and other
electric system
improvements
$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 2001 2002 2003 2004 2005 2006 2007
Cash and Investments
Bonds Payable
40
Water Fund
$500,000
Sanitary District began
direct billing North Star

Water service
supported by
ratepayers

Base rate increased
from $9.45 to $13.29
per user in 2007

Revenues totaled
$436,807 in 2007

In lieu of tax payment
to the City General
fund of $30,000 in
2007
$400,000
$300,000
$200,000
$100,000
$0
1998
1999
2000
2001
2002
2003
2004
2005
2006
2007
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 2002 2003 2004 2005 2006 2007
Cash and Investments
Bonds Payable
42
Sewer Fund
$700,000

Sewer service
supported by
ratepayers

Base rate increased
from $8.25 to $10.63
per user

Net income before
transfers was $90,165
in 2007
$600,000
$500,000
$400,000
$300,000
$200,000
$100,000
$0
-$100,000
1998
1999
2000
2001
2002
2003
2004
2005
2006
2007
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 2007
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
2007
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 12/31/07

Cash balance of $24,372 at
12/31/07

Contributed capital of
$174,300 in 2007
$40,000
$30,000
$20,000
$10,000
$0
2004
2005
Cash and Investments
2006
2007
Bonds Payable
46
Waste Management Fund-Fund Balance
$100,000

Collected refuse fees of
$122,195 and paid out
$159,683 for hauling
and other costs in 2007

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
$80,000
$60,000
$40,000
$25,596
$19,231
$20,000
$30,334
$28,582
$27,566
$18,594 $17,875
$15,962
$9,954
$8,494
$0
-$2,012
-$20,000
1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007
47
Summary

General Fund reserves equal 32% of annual general fund expenditures

Ambulance, Fire and Capital Improvement Funds transferring funds
annually to the EMS Fund for future capital needs

Capital Improvement fund balance of $182,386

TIF #5 (Whitewater Park) Capital Improvement is repaying $153,000 in
advances with tax increment receipts, district may expire before advance
is repaid

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.

Expenditures related to the 2007 flood impacted many City departments
48