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CITY OF ST. CHARLES Financial Summary - 2006. Audit. Audit Opinion Provides reasonable, but not absolute, assurance that financials are free of material misstatement Unqualified “Clean” opinion in 2006 Financial Statements - PowerPoint PPT Presentation
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1
CITY OF ST. CHARLESFinancial Summary - 2006
2
Audit Audit Opinion
• Provides reasonable, but not absolute, assurance that financials are free of material misstatement
• Unqualified “Clean” opinion in 2006
Financial Statements• 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• No Exceptions
Single Audit• None required in 2006
Management Letter• Limited personnel – Limit City’s ability to segregate accounting duties
3
Revenues
Governmental Funds
4
General Property Tax Levy
$0
$100,000
$200,000
$300,000
$400,000
$500,000
$600,000
$700,000
1998 1999 2000 2001 2002 2003 2004 2005 2006
General Tax Levy Market Value Credit
General tax levy revenues represented 27% of total governmental revenues in 2006
Tax collections $504,402Market value credit 81,084 Total 2006 $585,486
$585,486
$543,826
$512,450
5
Tax Increment Revenues
$85,408$74,865
$82,485$76,999 $69,314
$83,470
$110,227
$118,565
$141,491
$0
$25,000
$50,000
$75,000
$100,000
$125,000
$150,000
$175,000
$200,000
1998 1999 2000 2001 2002 2003 2004 2005 2006
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
6
LGA and HACA Revenues
$625,089
$551,502
$501,618$501,618
$618,740
$0
$200,000
$400,000
$600,000
$800,000
1997 1998 1999 2000 2001 2002 2003 2004 2005 2006
HACA LGA
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
7
Governmental Fund Revenues
$0
$100,000
$200,000
$300,000
$400,000
$500,000
$600,000
$700,000
1997 1998 1999 2000 2001 2002 2003 2004 2005 2006
Tax Increment Investment Income
Charges for Services General Property Tax Levy
LGA/HACA
8
Property Taxes and State Aid
$0
$250,000
$500,000
$750,000
$1,000,000
$1,250,000
1999 2000 2001 2002 2003 2004 2005 2006
General Property Taxes (Taxpayers) LGA/HACA (State) Market Value Credit (State)
41%44% 43%
40% 42%41%
34% 41%
9
Expenditures
Governmental Funds
10
General Governmental Expenditures
$159,574 $165,215$175,105 $174,753
$206,057
$237,305
$247,680
$293,267 $298,932
$347,623
$0
$50,000
$100,000
$150,000
$200,000
$250,000
$300,000
$350,000
$400,000
1997 1998 1999 2000 2001 2002 2003 2004 2005 2006
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
11
Public Safety Expenditures
$0
$100,000
$200,000
$300,000
$400,000
$500,000
$600,000
$700,000
$800,000
1997 1998 1999 2000 2001 2002 2003 2004 2005 2006
Other Expenditures Capital Outlay
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
12
Public Safety Expenditures
$71,562
$161,628
$13,196
$143,306
$56,233
$16,068
$136,328
$277,827
$0
$50,000
$100,000
$150,000
$200,000
$250,000
$300,000
Police Fire Ambulance EmergencyManagement
Services
Revenues Expenditures
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)
13
Public Works
$134,405
$155,783
$137,602
$161,581 $156,921 $163,196
$178,630 $178,619$173,643
$217,214
$0
$50,000
$100,000
$150,000
$200,000
$250,000
$300,000
1997 1998 1999 2000 2001 2002 2003 2004 2005 2006
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
14
Parks and Recreation
$0
$50,000
$100,000
$150,000
$200,000
$250,000
$300,000
$350,000
$400,000
1997 1998 1999 2000 2001 2002 2003 2004 2005 2006
Other Expenditures Capital Outlay
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
15
Park and Recreation Expenditures
$38,745
$147,239
$83,631
$116,843
$61,756
$9,446$4,394
$6,790 $4,000$0
$25,000
$50,000
$75,000
$100,000
$125,000
$150,000
$175,000
$200,000
Recreatio
n
Swimming Pool
Parks
Forestry
Senior Citiz
en's Cntr
Public
Transp
Revenue
Expenditures
Park and recreation expenditures in excess of program revenues are supported by the City’s general revenues including property taxes and local government aid
16
Library Expenditures
$0
$25,000
$50,000
$75,000
$100,000
$125,000
$150,000
$175,000
$200,000
1997 1998 1999 2000 2001 2002 2003 2004 2005 2006
Other Expenditures Capital outlay
Salaries and benefits, books, supplies, insurance, utilities, printing, etc… (including capital project fund expenditures)
Totaled $133,585 in 2006
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
17
Economic Development Expenditures
$120,617
$51,069
$5,599
$129,028
$70,938
$172,110
$31,395
$97,781
$33,822
$75,208
$0
$25,000
$50,000
$75,000
$100,000
$125,000
$150,000
$175,000
$200,000
1997 1998 1999 2000 2001 2002 2003 2004 2005 2006
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)
18
Governmental Fund Expenditures
$0
$100,000
$200,000
$300,000
$400,000
$500,000
$600,000
$700,000
$800,000
1998 1999 2000 2001 2002 2003 2004 2005 2006
Library Parks and Recreation General Government Public Works Public Safety
19
Reserves
20
General Fund - Reserves
$616,656
$769,774
$584,105
$827,222
$613,708
$888,506
$599,455
$969,990
$627,122
$969,709
$659,176
$1,066,386
$686,782
$1,145,739
$683,060
$998,727
$360,890
$1,215,650
$0
$200,000
$400,000
$600,000
$800,000
$1,000,000
$1,200,000
$1,400,000
1998 1999 2000 2001 2002 2003 2004 2005 2006
Unreserved Fund Balance Total Expenditures
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:
Library $136,813EMS 32,000TIF 63,431
Parkland Dedication 55,250
21
Economic Development Fund - Fund Balance
$16,455
$82,197
$135,037
$66,507$72,830
($24,239)
$9,932
($23,256)($15,110)
($54,943)
-$100,000
-$75,000
-$50,000
-$25,000
$0
$25,000
$50,000
$75,000
$100,000
$125,000
$150,000
1997 1998 1999 2000 2001 2002 2003 2004 2005 2006
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
22
Library Fund - Fund Balance
$102,857$114,508
$126,661$135,119
$237,766 $235,259
$273,951
($162,360)
($348,428)
$28,547
-$400,000
-$300,000
-$200,000
-$100,000
$0
$100,000
$200,000
$300,000
1997 1998 1999 2000 2001 2002 2003 2004 2005 2006
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
23
Volunteer Fire Fund - Fund Balance
$100,409
$159,809
$222,464
$11,477
$101,915
($38,334)
$117,147
$131,464
$164,755
$116,985
-$50,000
$0
$50,000
$100,000
$150,000
$200,000
$250,000
1997 1998 1999 2000 2001 2002 2003 2004 2005 2006
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
24
Advertising Fund - Fund Balance
$11,475
$6,775 $5,197 $6,468$2,366
($3,577) ($3,755)
($17,477) ($20,435)
($2,621)
-$40,000
-$20,000
$0
$20,000
$40,000
$60,000
1997 1998 1999 2000 2001 2002 2003 2004 2005 2006
Funds used for City promotion/Fireworks
Levied $8,000 in the Advertising fund and transferred in $12,850 from the Library Fund in 2006
25
Celebration Fund - Fund Balance
$1,258 $2,115 $1,764 $2,070$3,678
$258
($4,638)($8,012)
($11,832) ($10,290)
-$20,000
$0
$20,000
$40,000
$60,000
1997 1998 1999 2000 2001 2002 2003 2004 2005 2006
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
26
Ambulance Fund - Fund Balance
$41,021$45,608
$87,876
$130,837
$160,404 $158,237
$179,764
$166,880
$0
$50,000
$100,000
$150,000
$200,000
$250,000
1999 2000 2001 2002 2003 2004 2005 2006
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
27
Emergency Management Services Fund - Fund Balance
$26,568
$0
$25,000
$50,000
$75,000
$100,000
2004 2005 2006
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
28
Debt Service
29
General Obligation Bonds
$412,000 $389,000 $355,000 $355,000$296,000
$264,000$230,000
$1,785,000
$195,000
$1,785,000
$0
$250,000
$500,000
$750,000
$1,000,000
$1,250,000
$1,500,000
$1,750,000
$2,000,000
1999 2000 2001 2002 2003 2004 2005 2006
Water Impr Bonds of 1983
Street Impr Bonds of 2005
GO Bonds Outstanding:• Water Impr Bond of
1983• Street Impr Bond of
2005
Supported by property taxes and fund balance reserve of $202,912
30
Tax Increment Bonds
$665,000 $665,000$635,000
$605,000$575,000
$540,000
$465,000 $465,000
$425,000
$0
$100,000
$200,000
$300,000
$400,000
$500,000
$600,000
$700,000
1999 2000 2001 2002 2003 2004 2005 2006
Tax Increment Bond of 1996
Refunding Tax Increment Bond of 2004
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
31
General Obligation Revenue Bonds
$0
$500,000
$1,000,000
$1,500,000
$2,000,000
$2,500,000
$3,000,000
$3,500,000
$4,000,000
2001 2002 2003 2004 2005 2006
Water and Sewer Revenue Bonds of 2002Water and Sewer Revenue Bonds of 2004Electric Revenue Bonds of 1997Electric Revenue Bonds of 2004
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
32
Other Long-Term Debt
$100,000 $91,907$83,452
$74,594
$44,634
$0
$50,000
$100,000
$150,000
$200,000
$250,000
$300,000
1999 2000 2001 2002 2003 2004 2005 2006
Fire Truck LoanAmbulance Capital Lease2006 Ambulance Capital Lease
Fire Truck Loan payments due through 2013
New Ambulance Capital Lease in 2006
33
5 Year Debt Service Requirements
$0
$200,000
$400,000
$600,000
$800,000
$1,000,000
2007 2008 2009 2010 2011
Notes payable GO Bonds
GO TIF Bonds GO Revenue Bonds
Includes both principal and interest
34
Capital Projects
35
Capital Projects Funds - Expenditures
$0
$500,000
$1,000,000
$1,500,000
$2,000,000
1997 1998 1999 2000 2001 2002 2003 2004 2005 2006
Capital Improvements Tax Increment
Major capital improvements in 2006 totaled $357,309 and consisted of:
• 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
36
Capital Improvement Fund - Fund Balance
$643,749
$218,722
$310,069
$408,044
$206,269
$338,046
$204,917
$591,549
$268,985
$0
$100,000
$200,000
$300,000
$400,000
$500,000
$600,000
$700,000
$800,000
1998 1999 2000 2001 2002 2003 2004 2005 2006
Funded through property taxes, donations, and interest
Transferred $240,000 to the Library fund
37
TIF Capital Improvement Fund - Fund Balance
$24,253
$310,541
($159,179)
$6,032
($202,480)
-$4,772
$21,871
$387,250
($178,829)
$7,720
($177,630)
-$6,282
-$300,000
-$200,000
-$100,000
$0
$100,000
$200,000
$300,000
$400,000
$500,000
2005 2006
TIF #1 TIF #2 TIF #3 TIF #4 TIF #5 TIF #6
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
38
Operational Trends
Utility Funds
39
Electric Fund
$0
$250,000
$500,000
$750,000
$1,000,000
$1,250,000
$1,500,000
$1,750,000
$2,000,000
$2,250,000
1998 1999 2000 2001 2002 2003 2004 2005 2006
Net Operating Revenues Purchased Power
Operating Expenses Net Income Before Transfers
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
40
Electric Fund
$0
$500,000
$1,000,000
$1,500,000
$2,000,000
$2,500,000
$3,000,000
$3,500,000
$4,000,000
1997 1998 1999 2000 2001 2002 2003 2004 2005 2006
Cash and Investments Bonds Payable
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
41
Water Fund
$0
$100,000
$200,000
$300,000
$400,000
$500,000
1998 1999 2000 2001 2002 2003 2004 2005 2006
Net Operating RevenuesOperating ExpensesNonoperating Revenue (Excl Cap Contr)Interest ExpenseNet Income Before Transfers and Capital Contr
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
42
Water Fund
$0
$200,000
$400,000
$600,000
$800,000
$1,000,000
$1,200,000
1998 1999 2000 2001 2002 2003 2004 2005 2006
Cash and Investments Bonds Payable
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
43
Sewer Fund
-$100,000
$0
$100,000
$200,000
$300,000
$400,000
$500,000
$600,000
$700,000
1998 1999 2000 2001 2002 2003 2004 2005 2006
RevenuesOperating ExpensesNonoperating Income (Excl Cap Contr)Net Income Before Transfers and Capital Contributions
Sewer service supported by ratepayers
Substantial expansion of the Dover Eyota Sanitary Sewer District is under consideration
44
Sewer Fund
$0
$200,000
$400,000
$600,000
$800,000
$1,000,000
$1,200,000
1998 1999 2000 2001 2002 2003 2004 2005 2006
Cash and Investments Bonds Payable
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
45
Storm Water Fund
$0
$25,000
$50,000
$75,000
$100,000
2004 2005 2006
Revenues
Operating Expenses
Net Income Before Transfers and Capital Contributions
Fund was established in 2004
Storm water activities are supported by ratepayers
46
Storm Water Fund
$0
$10,000
$20,000
$30,000
$40,000
$50,000
2004 2005 2006
Cash and Investments Bonds Payable
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
47
Waste Management Fund-Fund Balance
$9,954
$15,962$19,231
$25,596$27,566
$30,334$28,582
$18,594 $17,875
$8,494
$0
$20,000
$40,000
$60,000
$80,000
$100,000
1997 1998 1999 2000 2001 2002 2003 2004 2005 2006
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
48
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.