HomeMy WebLinkAbout9A 2015 Annual Fiancial Report and Management Letter PresentationCITY OF PRIOR LAKE
AUDIT REPORT
YEAR ENDED DECEMBER 31, 2015
James H. Eichten, CPA
Opinion on Financial Statements
Financial statements are fairly presented in accordance with accounting principles generally accepted in the United States of America
Testing of Internal Controls and Compliance
Internal controls over financial reporting
Compliance with laws and regulations related to financial reporting
State Laws and Regulations
Compliance with Minnesota laws and regulations
Single Audit of Federal Awards
Not required for calendar 2015
AUDITOR’S ROLE
Audit Summary
Planned scope and timing of audit
Audit opinions and findings
MANAGEMENT REPORT
Financial Report
Unmodified or clean opinion
Emphasis of a Matter
Implementation of GASB Statement #68 on
Pensions
Internal Controls Over Financial Reporting
No findings
Legal Compliance Audit Findings
Collateral for Uninsured Deposits
AUDIT OPINIONS AND FINDINGS
Audit Summary
Governmental Funds Overview
MANAGEMENT REPORT (CONT.)
MANAGEMENT REPORT (CONT.)
$–
$500,000,000
$1,000,000,000
$1,500,000,000
$2,000,000,000
$2,500,000,000
$3,000,000,000
2006 2007 2008 2009 2010 2011 2012 2013 2014 2015
Taxable Market Value
MANAGEMENT REPORT (CONT.)
Tax Rates
Rates expressed as a percentage of net tax capacity
2014 2015 2014 2015 2014 2015
Average tax rate
City 48.8 46.9 46.0 43.4 30.7 32.0
County 47.6 44.7 46.6 42.9 39.7 36.6
School 28.9 27.1 30.9 28.3 36.2 32.7
Special taxing 7.3 6.9 9.5 8.8 7.4 7.3
Total 132.6 125.6 133.0 123.4 114.0 108.6
Prior LakeMetro Area
Seven-CountyAll Cities
State-Wide
City of
MANAGEMENT REPORT (CONT.)
Year 2013 2014 2015
Population 2,500–10,000 10,000–20,000 20,000–100,000 24,223 24,911 25,049
Property taxes 427$ 396$ 427$ 388$ 379$ 414$
Tax increments 26 37 46 20 19 19
Franchise and other taxes 32 42 37 24 24 24
Special assessments 59 51 64 47 25 46
Licenses and permits 28 27 41 32 23 23
Intergovernmental revenues 298 264 166 166 82 115
Charges for services 105 82 90 110 111 100
Other 66 72 65 1 49 34
Total revenue 1,041$ 971$ 936$ 788$ 712$ 775$
December 31, 2014
City of Prior LakeState-Wide
Governmental Funds Revenue per Capita
With State-Wide Averages by Population Class
MANAGEMENT REPORT (CONT.)
Year 2013 2014 2015
Population 2,500–10,000 10,000–20,000 20,000–100,000 24,223 24,911 25,049
Current
131$ 104$ 87$ 111$ 113$ 105$
248 237 254 191 190 193
121 119 114 79 75 83
86 101 92 69 71 67
69 89 98 8 5 7
655 650 645 458 454 455
Capital outlay
and construction 357 278 276 359 254 567
Debt service
180 163 115 161 128 128
54 40 34 54 50 59
234 203 149 215 178 187
Total expenditures 1,246$ 1,131$ 1,070$ 1,032$ 886$ 1,209$
General government
Governmental Funds Expenditures per Capita
With State-Wide Averages by Population Class
December 31, 2014
City of Prior LakeState-Wide
Interest and fiscal charges
Public safety
Streets and highways
Culture and recreation
All other
Principal
MANAGEMENT REPORT (CONT.)
Increase
2015 2014 (Decrease)
Fund balances of governmental funds
Total by classification
Nonspendable 9,150$ 710$ 8,440$
Restricted 9,469,229 5,188,054 4,281,175
Assigned 10,107,820 8,803,981 1,303,839
Unassigned 6,039,025 5,775,889 263,136
Total – governmental funds 25,625,224$ 19,768,634$ 5,856,590$
Total by fund
General 6,124,751$ 5,776,647$ 348,104$
DAG Special Revenue 743,774 681,406 62,368
Debt Service 7,559,836 1,543,772 6,016,064
Construction 4,234,770 1,346,445 2,888,325
Special revenue nonmajor funds 883,083 1,088,160 (205,077)
Capital projects nonmajor funds 6,079,010 9,332,204 (3,253,194)
Total – governmental funds 25,625,224$ 19,768,634$ 5,856,590$
Governmental Funds Change in Fund Balance
Fund Balance
as of December 31,
MANAGEMENT REPORT (CONT.)
$–
$2,000,000
$4,000,000
$6,000,000
$8,000,000
$10,000,000
$12,000,000
$14,000,000
2011 2012 2013 2014 2015
General Fund Financial Position
Year Ended December 31,
Fund Balance
Cash and Investments Balance
Expenditures and Transfers Out
MANAGEMENT REPORT (CONT.)
$–
$1,000,000
$2,000,000
$3,000,000
$4,000,000
$5,000,000
$6,000,000
$7,000,000
$8,000,000
$9,000,000
$10,000,000
Taxes Licenses
and
Permits
Intergovernmental Charges
for
Services
Fines
and
Forfeits
All Other
General Fund Revenue by Source
Year Ended December 31,
2011 2012 2013 2014 2015
MANAGEMENT REPORT (CONT.)
$–
$500,000
$1,000,000
$1,500,000
$2,000,000
$2,500,000
$3,000,000
$3,500,000
$4,000,000
$4,500,000
$5,000,000
General
Government
Public Safety Public Works Culture and
Recreation
All Other
General Fund Expenditures by Function
Year Ended December 31,
2011 2012 2013 2014 2015
MANAGEMENT REPORT (CONT.)
Audit Summary
Governmental Funds Overview
Enterprise Funds Overview
MANAGEMENT REPORT (CONT.)
Increase
2015 2014 (Decrease)
Net position of enterprise funds
Total by classification
Net investment in capital assets 47,805,809$ 46,627,184$ 1,178,625$
Unrestricted 3,881,319 6,415,575 (2,534,256)
Total – enterprise funds 51,687,128$ 53,042,759$ (1,355,631)$
Total by fund
Water 30,730,432$ 31,192,000$ (461,568)$
Sewer 19,327,366 20,348,812 (1,021,446)
Water Quality 1,629,330 1,501,947 127,383
Total – enterprise funds 51,687,128$ 53,042,759$ (1,355,631)$
Enterprise Funds Change in Financial Position
Net Position
as of December 31,
MANAGEMENT REPORT (CONT.)
$–
$250,000
$500,000
$750,000
$1,000,000
$1,250,000
$1,500,000
$1,750,000
$2,000,000
$2,250,000
$2,500,000
$2,750,000
$3,000,000
$3,250,000
$3,500,000
2011 2012 2013 2014 2015
Water Enterprise Fund
Year Ended December 31,
Operating Revenue Operating Expenses
Operating Income (Loss)Income Before Depreciation
MANAGEMENT REPORT (CONT.)
$(250,000)
$–
$250,000
$500,000
$750,000
$1,000,000
$1,250,000
$1,500,000
$1,750,000
$2,000,000
$2,250,000
$2,500,000
$2,750,000
2011 2012 2013 2014 2015
Sewer Enterprise Fund
Year Ended December 31,
Operating Revenue Operating Expenses
Operating Income (Loss)Income Before Depreciation
MANAGEMENT REPORT (CONT.)
$(100,000)
$–
$100,000
$200,000
$300,000
$400,000
$500,000
$600,000
$700,000
$800,000
$900,000
2011 2012 2013 2014 2015
Water Quality Enterprise Fund
Year Ended December 31,
Operating Revenue Operating Expenses
Operating Income (Loss)Income Before Depreciation
Audit Summary
Governmental Funds Overview
Enterprise Funds Overview
Government-Wide Financial
Statements
Legislative Updates
Accounting and Auditing Updates
MANAGEMENT REPORT (CONT.)
MANAGEMENT REPORT (CONT.)
2014
Program
Expenses Revenues Net Change Net Change
Governmental activities
General government 3,266,222$ 791,037$ (2,475,185)$ (2,816,941)$
Public safety 5,426,539 2,022,409 (3,404,130) (3,021,205)
Public works 4,775,320 9,482,815 4,707,495 1,387,465
Culture and recreation 2,271,719 313,048 (1,958,671) (1,785,789)
Economic development 590,532 253,659 (336,873) (360,475)
Interest on long-term debt 1,410,844 – (1,410,844) (1,185,474)
Business-type activities
Water 2,347,154 3,969,925 1,622,771 1,074,222
Sewer 2,468,932 2,704,876 235,944 178,308
Water quality 560,820 907,646 346,826 366,763
Transit – – – (163,723)
23,118,082$ 20,445,415$ (2,672,667) (6,326,849)
General revenues
Taxes 11,452,374 10,518,306
Unrestricted grants and contributions 13,250 52,555
Investment earnings 526,006 1,112,257
Other revenues 318,328 210,423
Special item – transfer of operations (25,200) (1,371,480)
12,284,758 10,522,061
9,612,091 4,195,212
Net position - beginning, as previosly reported 159,582,600 155,387,388
Change in accounting principle (5,117,943) –
Net position - beginning, as restated 154,464,657 155,387,388
Net position - ending 164,076,748$ 159,582,600$
Total net (expense) revenue
Total general revenues
Change in net position
Net (expense) revenue
2015
Clean Opinion on Financial Statements
One Finding Reported
Overall Improved Financial Results
Implementation of GASB Statement #68
Continued Ongoing Assessment of
Financial Projections and Results Including
General, Other Operational and Enterprise
Fund Activities
SUMMARY