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Home My WebLink AboutAudit Report M KR CfR'fIFIEO PGBIJC ACCtII \ TANTS City of Prior Lake Audit Report Year Ended December 31, 2012 Malloy, Montague, Karnowski, Radosevich, & Co., P.A. � �. ��, _ �:� . z , , �,��- � ,; � � ,�, �� ;� James H. Eichten, CPA � " � � "�� T�� Adrienne Mutzenberger, C P , �``�> . .� ,.:_ M KR A i r' �, ud to s Role CtLRTIFIEt> PI�i�LIC A C C O U\ 1 A\ T 1 �i Opinion on Financial Statements � — Financial Statements are Fairly Presented in Accordance with U.S. GAAP �1 Testing of Internal Controls and Compliance — Internal Controls over Financial Reporting — Compliance with Laws and Regulations related to Financial Reporting — Minnesota Legal Compliance 4 No Single Audit of Federal Awards for 2012 1 M �R Audit Results CFar�r�F.D Pcst.tC �A C L O l�� V�I� A N 7$ OFinancial Statement Opinion — Unqualified �Findings - Internal Controls — None CiFindings - MN Legal Compliance — None M KR Audi R �,,,,,, t esults CERI'IPIf�.i) Pti$LtC ACC(ll' \ TA NTS tiFollow-up on Prior Year Findings — Prior Period Adjustment — Adjusting Journal Entry — Withholding Affidavit 2 ' "' �' ` Mana em n R � g e t eport CER"1'IFIED PUBI.IC ACCI�G\T,�\TS 0 Audit Summary — Met Planned Scope and Timing — Significant Accounting Policies ° Implemented GASB Statement No. 63 — Uncorrected Misstatements — Other Required Communications t� Legislation � ti Property Taxes Local Net Tax Capacity $35,000,000 $30,000,000 $25,000,000 $20,000,000 $15,000,000 $10,000,000 $5,000,000 $- 2008 2009 2010 2011 2012 3 M KR Tax Rates CE��R'tlPlfiD Pt,'.BI.I(; � ACCOC'\ 1,1\Tti Rates expressed as a percentage ofnet taxcapacit5= AllCities Seven-Count} City State-Wide � Metro Area� Prior Lake 20ll 2012 2011 2012 20ll 2012 Acerage taa rate City 42.5 463 40.0 43.4 30.7 29.7 County 43.7 46.8 42.1 45.0 35.5 38.8 School 25.2 27.3 26.8 28.5 34.0 34.4 Special ta�ang 6.4 6.8 8.1 8.7 6.4 6.8 Total 117.8 127.2 117.0 ]25.6 106.6 109.7 M �� Man �, agement Report Ct;R"CIFIFI> Pl'BLIC AC� Ol'V iAVT� <i Audit Summary Gr Legislation G Property Taxes i� Governmental Funds Overview 4 �, A �� Governmental Funds Change in Fund Balance � V l (; P R'f 1 f I F. f) P C; R I.l C A C C O t'� i� T A:� l S Fund Balance as ofDecember3l, Increase � � 2012 � 2011 (Decrease) Fund balances ofgovemmental funds Totalby classification Restricted � $ 6,193,184 $ 8,842,047 $ (2,648,863) Assigned 8,608,145 6,881,166 1,726,979 � Unassigned � 6,281,156 7,011,612 (730,456) Total— govemmental funds $ 21,083,485 $ 22,734,825 $ (1,652,340) Total by fund General S 6,972,362 $ 7,747,207 $ (774,845) Debt Service 5,398,362 5,646,673 (248,311) ConstrucCion � 975,938 3,402,164 � (2,426,226) Specia] Revenue 1,513,43� 1,221,870 291,565 Capital Projects 6,222,388 4,716,9] I 1,505,477 Total—�ovemmentalfunds $ ?7,082,485 � 22,734,825 $ (1,652,340) M �� Co�ernmental Funds Re�enue per Capita With State-Wide Averages by Population Class � C�:a Pi.:s�.�c Accou;:r.axrs � State-Wide City of Prior lake Year December31,2011 2010 20ll 2012 Population 2,500—]0,000 10,00�2Q000 20,000-100,000 22,796 23,010 23,010 Propertyta?�s $ 390 $ 363 $ 406 $ 439 � 430 $ 413 Taxinerements 40 � 48 SI 22 � 21 21 Franchise and other ta�s 27 36 30 26 27 27 Special assessments 70 56 56 37 29 27 Licenses and permits 23 21 31 ]8 19 28 Intergovemmental revenues 283 263 152 93 61 162 Charges for services � 95 79 � � 78 71 68 l l6 Other 65 7� 65 37 40 56 Totalrevenue $ 993 $ 941 $ 869 $ 744 � 695 $ 850 5 M K R ��rnmental Funds Expen�litures per Capita With State-Wide Averages by Population Class Cf'R"I'1{IF.D PC.`BLit' A G C O C�"f A N'f 4 State-W ide City of Prior Lake 1'ear December31,2011 2010 2011 2012 Population 2,500–]0,000 iQ000-20,000 20,00(�100,000 22,796 23,010 23,010 Cunent Generalgovemment $ 126 $ 99 $ 82 � 91 S 98 $ ]06 Public safety 231 225 238 177 187 191 Streets and highways 114 108 89 76 79 74 C1�lture and recreation 79 _ 96 87 7] 75 7a All other 74 8l 82 2 q g 3 624 $ 609 $ 578 $ 4U 5 4a3 $ 453 Capital outlay and constniction $ 258 $ 272 $ 233 � 205 $� 169 $ 361 Debt service Principal $ 186 $ 148 S ]09 $ 118 $ 123 $ 149 [nterest and fiscal chages W 48� 4l 70 72 65 $ 2d6 $ 196 $ 150 � 188 $ 195 $ 209 General Fund Financial Position Year Ended December 3 l, $14,000,000 $12,000,000 $ I0,000,000 $8,000,000 $6,000,000 �4,000,000 $2,000,000 5- 2008 2009 2010 2011 2012 �FundBalance OCashandInvestmentsBalance — ExpendituresandTransfers0ut 6 General Fund Revenue by Source Year Ended December 31, � 10,000,000 $9,000,000 $8,000,000 $7,000,000 $6,000,000 �5,000,000 �4,000,000 $3,000,000 $2,000,000 $1,000,000 �- Taxes Licenses Intergovemmental Charges Fines AllOther and for and Permits Services Forfeits ■2008 ■2009 ❑2010 ■2011 ■2012 General Fund Expenditures by Function Year Ended December 31. �4,500,000 $4,000,000 --- 53,500,000 � � � $3,OOQ000 - � - �2,500,000 :z., � $2,000,000 - --- $1,500,000 � ��', � $1,000,000 = i � i � �500,000 �� r � i - � i �;,; ,�'>': S -- ��ru�r�� i�ubhc Salety ru�u� `vvuri:s Cultureand All Other Government Recreation ■2008 ■2009 ■2010 02011 ■2012 7 M KR Mana ement Re ort �� g P c�F t�rni.ic Acco� � r,�� rs �i Audit Summary c� Legislation ti Property Taxes €,� Governmental Funds Overview t� Internal Service Fund M KR Mana ement Re ort � g p C;F:R1'If 1fiC) I'l'•ItLfC p(:(:111'ti �l�A X'I�� 4 Audit Summary �i Legislation <i Property Taxes <'�► Governmental Funds Overview t� Internal Service Fund 6� Enterprise Funds Overview s M K R �terprise Funds Change in Financial Position Ctsnrien P�:Ri.t�: A C l.: O t! \ TA A�1 J Net Position as ofDecember3l, Increase � 2012 2011� (Decrease) Net position ofenterpnse funds Total b� classification Net investment in capiYalassets $ 45 $ 4�,435,153 $ 328,968 Unrestricted � 7,332,348 6,980,909 3�1,439 Total — enterprise funds $ 53,096,469 $ 52,416,062 S 680,407 Total by fund Water 5 30,776,518 $ 30,067,707 � 708,811 Se�mer 19,954,061 19,882,718 71,343 WaterQuality 787,2�6 771,146 16,ll0 Transit � 1,578,634 1,694,491 (115,85'n Total— enterpnse funds $ 53,096,469 $ 52,416,062 S� 68Q407 Water Enterprise Fund Year Ended December 3 l, 5,3,500,000 $3,250,000 � $3,000,000 �2,750,000 $2,500,000 ' 52.250.000 � �2,000,000 i 51,750,000 $1,500,000 ' $1,250,000 � � $1,000,000 ' 5750.000 $500,000 $250.000 $— — 2010 2011 2012 �OperatingRevenue o0peratingExpenses —Operatinglncome(Loss) —IncomeBeforeDepreciation 9 Sewer Enterprise Fund Year Ended December 31, $2,500,000 �2,250,000 � $2,000,000 � I ,750,000 51,500,000 $1,250,000 � � 1,000,000 ' $750,000 � �500,000 $250,000 � i �— � S(2J0,000) 2010 2011 2012 �Operating Revenue OOperating Expenses —Operatinglncome(Loss) —IncomeBeforeDepreciation Water Quality Enterprise Fund Year Ended December 31, S600,000 $500,000 $400,000 �300,000 $200,000 ' I $100,000 �� 5— � S(100,000) � i $(200,000) 2008 2009 2010 2011 2012 �OperatingRevenue �OperatingExpenses —Operatinglncome(Loss) —IncomeBeforeDepreciation 10 Transit Fund Year Ended December 3 l, � 1,000,000 $750,000 S�00,000 �250,000 �– $(250,000) $(500,000) $(750,000) 2008 2009 2010 20 ll 2012 �OperatingRevenue oQpzratingExpenses —Operating Income (Loss) M ' `� M n �„ a agement Report CE�:a Pt;[si.�c. ACCOl'\ I�AN'I J A� Audit Summary � � 4 Legislation t3 Property Taxes 0 Governmental Funds Overview O Internal Service Fund O Enterprise Funds 4 Overall Financial Analysis 11 M K R 2°'2 . 2°�' Program E�enses Recenues NetChanae NetChnnge CFRTIFIE�,D PCBLLC: ACt:(lU NTAti TS Net (e�.pense) recenue Cavemmental activities . General govemment $ 3,156,038 $ � 1,041,863 $ (2,114,175) $ (1,799,611) Public safety 4,744,743 1,834,652 (2,910,091) (3,07i,775) Public worl.s 4,931,149 4,319,544 (611,605) (2,308,642) Culture and recreation 2,231,995 929,363 (1,302,632) (1,912,385) Econortric develop�nent 595,770 1,653,380 1,057,610 (62$884) Interest on long-termdebt 2,101,559 — (2,101,559) (],603,642) Business-type activities � Water ' 2,057,934 �3,426,383 1,368,449 37$712 Sewer 2,34�,657 2,502,409 1�6,752 (178,282) Waterqualiry 362,459 622,501 260,042 10�,423 Transi[ 841,040 683,821 (157,219) (62,671) Totalnet(espense)cevenue $ 23,368,344 $ I7,013,916 (6,354,428) (11,085,697) General recenues Ta.�es . IQ520,436 1 Q89G,173 � Unrestricted grants and contributions � � '18,066 � 16,831 Investment eamings 697,847 891,574 Oth er recen ues 348,454 I G8,299 Total general reve�ues � ] 1,584,803 1 1,972,877 Change in net position $ 5,230,375 � 837,180 M KR Mana ement Re or g p t CLRTtFIF-!� PGItI,IC A C C O U\ C A\ T j t� Audit Summary +�i Legislation ti Property Taxes � Governmental Funds Overview 0 Internal Service Fund 4 Enterprise Funds ti Overall Financial Analysis t� Accounting and Auditing Updates 12 M KR ,� Summary C; F R�I� I E I F�, f� P t' R I_ 1 C. Ac:COI:\"IA\l ti � t� Clean Opinion on Financial Statements tiNo Findings i�Continue to Assess and Improve Internal � Controls and Financial Reporting � tiFinancial Results Indicate Adherence to Budget t�iImproving General Fund Financial Condition � t'1lmproving Overall Enterprise Fund Financial Trends 13