HomeMy WebLinkAbout9A 2016 Annual Financial Report and Management Letter PresentationCITY OF PRIOR LAKE
AUDIT REPORT
YEAR ENDED DECEMBER 31, 2016
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 2016
AUDITOR’S ROLE
Audit Summary
▪Planned scope and timing of audit
▪Audit opinions and findings
MANAGEMENT REPORT
Financial Report
▪Unmodified or clean opinion
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
$3,000,000,000
2007 2008 2009 2010 2011 2012 2013 2014 2015 2016
Taxable Market Value
MANAGEMENT REPORT (CONT.)
Tax Rates
Rates expressed as a percentage of net tax capacity
2015 2016 2015 2016 2015 2016
Average tax rate
City 46.9 46.5 43.4 43.0 32.0 32.0
County 44.7 44.1 42.9 42.3 36.6 36.2
School 27.1 27.5 28.3 28.6 32.7 32.9
Special taxing 6.9 6.9 8.8 8.7 7.3 7.2
Total 125.6 125.0 123.4 122.6 108.6 108.3
Prior LakeMetro Area
Seven-CountyAll Cities
State-Wide
City of
MANAGEMENT REPORT (CONT.)
Increase
2016 2015 (Decrease)
Fund balances of governmental funds
Total by classification
Nonspendable –$ 9,150$ (9,150)$
Restricted 10,474,448 9,469,229 1,005,219
Assigned 9,755,914 10,107,820 (351,906)
Unassigned 6,634,264 6,039,025 595,239
Total – governmental funds 26,864,626$ 25,625,224$ 1,239,402$
Total by fund
General 6,684,920$ 6,124,751$ 560,169$
DAG Special Revenue 687,724 743,774 (56,050)
Debt Service 9,407,774 7,559,836 1,847,938
Construction 3,326,863 4,234,770 (907,907)
Special revenue nonmajor funds 1,518,303 883,083 635,220
Capital projects nonmajor funds 5,239,042 6,079,010 (839,968)
Total – governmental funds 26,864,626$ 25,625,224$ 1,239,402$
Governmental Funds Change in Fund Balance
Fund Balance
as of December 31,
MANAGEMENT REPORT (CONT.)
Year 2014 2015 2016
Population 2,500–10,000 10,000–20,000 20,000–100,000 24,911 25,049 25,356
Property taxes 443$ 414$ 443$ 380$ 414$ 438$
Tax increments 26 33 37 19 19 20
Franchise and other taxes 33 42 39 24 24 26
Special assessments 59 52 59 25 46 34
Licenses and permits 31 31 43 23 23 30
Intergovernmental revenues 285 322 156 82 115 65
Charges for services 110 85 94 111 100 132
Other 69 62 58 49 34 24
Total revenue 1,056$ 1,041$ 929$ 713$ 775$ 769$
December 31, 2015
City of Prior LakeState-Wide
Governmental Funds Revenue per Capita
With State-Wide Averages by Population Class
MANAGEMENT REPORT (CONT.)
Year 2014 2015 2016
Population 2,500–10,000 10,000–20,000 20,000–100,000 24,911 25,049 25,356
Current
134$ 109$ 89$ 113$ 105$ 100$
255 244 261 190 192 200
119 117 99 75 83 74
88 108 94 71 67 63
64 70 89 5 7 6
660 648 632 454 454 443
Capital outlay
and construction 372 389 286 254 567 312
Debt service
181 178 117 128 128 150
51 40 33 50 59 54
232 218 150 178 187 204
Total expenditures 1,264$ 1,255$ 1,068$ 886$ 1,208$ 959$
General government
Governmental Funds Expenditures per Capita
With State-Wide Averages by Population Class
December 31, 2015
City of Prior LakeState-Wide
Interest and fiscal charges
Public safety
Streets and highways
Culture and recreation
All other
Principal
MANAGEMENT REPORT (CONT.)
$–
$2,000,000
$4,000,000
$6,000,000
$8,000,000
$10,000,000
$12,000,000
$14,000,000
2012 2013 2014 2015 2016
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
Taxes Licenses
and
Permits
Intergovernmental Charges
for
Services
Fines
and
Forfeits
All Other
General Fund Revenue by Source
Year Ended December 31,
2012 2013 2014 2015 2016
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
$5,500,000
General
Government
Public Safety Public Works Culture and
Recreation
All Other
General Fund Expenditures by Function
Year Ended December 31,
2012 2013 2014 2015 2016
MANAGEMENT REPORT (CONT.)
Audit Summary
Governmental Funds Overview
Enterprise Funds Overview
MANAGEMENT REPORT (CONT.)
Increase
2016 2015 (Decrease)
Net position of enterprise funds
Total by classification
Investment in capital assets 51,075,358$ 47,805,809$ 3,269,549$
Unrestricted 4,309,353 3,881,319 428,034
Total – enterprise funds 55,384,711$ 51,687,128$ 3,697,583$
Total by fund
Water 32,804,990$ 30,730,432$ 2,074,558$
Sewer 20,723,278 19,327,366 1,395,912
Water Quality 1,856,443 1,629,330 227,113
Total – enterprise funds 55,384,711$ 51,687,128$ 3,697,583$
Enterprise Funds Change in Financial Position
Net Position
as of December 31,
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
2012 2013 2014 2015 2016
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
$3,000,000
2012 2013 2014 2015 2016
Sewer Enterprise Fund
Year Ended December 31,
Operating Revenue Operating Expenses
Operating Income (Loss)Income Before Depreciation
MANAGEMENT REPORT (CONT.)
$–
$100,000
$200,000
$300,000
$400,000
$500,000
$600,000
$700,000
$800,000
$900,000
$1,000,000
2012 2013 2014 2015 2016
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
Legislative Updates
Accounting and Auditing Updates
MANAGEMENT REPORT (CONT.)
Clean Opinion on Financial Statements
One Finding Reported
Overall Improved Financial Results
Continued Ongoing Assessment of
Financial Projections and Results Including
General, Other Operational and Enterprise
Fund Activities
SUMMARY