HomeMy WebLinkAbout3F - 1992 Financial Report & George M. Hansen Audit Appointment
CONSENT AGENDA:
REQUESTED BY:
SUBJECT MATTER:
DATE:
INTRODUCTION:
BACKGROUND:
3 (f)
RALPH TESCHNER, FINANCE DIRECTOR
CONSIDER APPROVAL OF 1992 FINANCIAL REPORT AND
1993 AUDIT APPOINTMENT TO GEORGE M. HANSEN
COMPANY
MAY 17, 1993
Attached for your review is the 1992 Financial
Report as prepared by the George M. Hansen
Company. Staff is also requesting the Council
to reappoint the George M. Hansen to perform
the City's 1993 financial audit.
A summary of the City's financial condition
and fund highlights are presented under the
beginning section entitled "Comments" on pages
I-V. As noted within the General Fund,
revenues exceeded expenditures by $29,951.00
in 1992, thereby increasing the Clty of Prior
Lake's preliminary overall fund balance to
$1,546,047.00.
Staff provided the Council with a Memorandum
entitled "General Overview of Auditing
Services" on 3/1/93. The purpose was to
provide the Council with expected level of
service, comparable cost and reasons why
continuity of audit personnel is important.
It was understood that if the Council was in
support of these principals, that the City's
financial statements would continue to be
prepared by the firm of the George M. Hansen
Company. Official appointment would then occur
at the time of annual review of the audit.
The management letter, dated 6/5/92, included
a recommendation that fundin9 for the City's
liability for vacation and slck leave pay be
provided. Staff addressed this issue in a
Memorandum which the city Council accepted on
7/6/92.
As a direct outcome of this action a Severance
Compensation Fund was established. The initial
appropriation was in the form of a transfer
from the General Fund on 12/31/92 in the
amount of $200,000.00. This represented
approximately 66% of the outstanding $311,633
liability.
4629 Dakota S1. S.E., Prior Lake, Minnesota 55372 / Ph. (612) 447-4230 / Fax (612) 447-4245
AN EQUAL OPPORTUNITY EMPLDYER
DISCUSSION:
ALTERNATIVES:
RECOMMENDATION:
The reason full funding was not reserved is
that the City would never ex~erience 100%
employee turnover. Future fund1ng would be
primarily supported by investment earnings
and/or occasional supplemental appropriations
if necessary.
Because of this transfer, the General Fund
balance was reduced to $1,346,047. This
accomplished two objectives: The first, was to
satisfy the City's past outstanding
compensated absence liability. And the second,
was to lower our Fund Balance in the eyes of
the state Le9islature with respect to their
potential ra1ding of City savings accounts to
resolve state revenue shortfalls.
Again, as in the past year, a portion of the
General Fund balance has been designated as
working capital. The amount reserved for
such purpose is $1,000,000 and represents 25%
of the General Operating Budget. This level is
necessary to provide cash flow during the
first half of the year before the City
receives its tax settlements and state aids.
The remaining balance accounts for the
UNRESERVED portion of $346,047.00 which
represents approximately 8.7% of the current
operating budget. While the entire amount can
be used as working capital, this desi9nation
provides us with appropriate flexibillty of
our reserve.
Also noted within the financial report is a
legal compliance audit which was performed to
ensure compliance with Minnesota Statutes in
the areas of: contracting and bidding,
deposits and investments, conflicts of
interest, public indebtedness and claims and
disbursements.
1. Accept 1992 Audit Report as submitted and
appoint the George M. Hansen Company to
prepare the 1993 financial statements.
2. Accept 1992 Audit Report as submitted, but
withhold appointment based upon Council
intent to change firms.
3. Delay action according to specific Council
reason.
staff would recommend that the George M.Hansen
Company be retained and the approval of the
financial report for the fiscal year ended
December 31, 1992 as submitted.
A City Financial Reporting Form, which is
basically a condensed excerpt of the official
document, is required to be submitted to the
Office of the State Auditor by June 30, 1993.
(SEE ATTACHED COPY).
ACTION REQUIRED:
Please feel free to contact Staff prior to the
meeting regarding content interpretation.
Motion to approve as part of the consent
agenda is in order.
.
I
. Al..I<XX:l3& ('11 ~
Office of the State Auditor
City Financial Reporting Form
Cities Re~orting in Accordance with
Generally Accepted Accounting Principles (GAAP)
Office of the State Auditor
Suite 400, 525 Park Street
St. Paul, Minnesota 55103
(612) 296-5982
City of
Prior Lake
For the Year Ended December 31, 1992
Please complete this form, per Minnesota Statutes Section 6.74
and return it with the city's audited financial statement by June 30th.
NOTE: THIS FORM SHOULD AGREE WITH THE COMBINED STATEMENT TOTALS IN THE AUDIT REPORT.
F~Jowned En~rlse Funds: Check those that apply.
Water U Sewer D Refuse D Liquor
C:=J Nursing Home D Electric 0 Other
D Hospital
Date Reviewed
AudltFifm
Net Tax Levy
Special Assessments
Local Gov't Aid
HACA
ORA
equalization Aid
city of Prior Lake
County of Scott
SECTION I: REVENUES
Include all Qovernmental funds and exoendable trust funds. Exclude enterprise funds Cliauor water. sewer etc.)
Amount
TAXES (31000) (rou'ld 10 noa....1 cloI\&r)
1 Property Taxes ............................................................................................................................ 1 2,045,497
2 Tax: Increments (llF) ................................................................................................................... 2 4'i.786
3 Franchise Taxes - (from private sector only) e.g. Cable 1V ..................................................... 3 ?4, 545
4 Local Sales Taxes ....................................................................................................................... 4
5 HoteVMotel Taxes ..... ........ ........ ........ ........ ........ ........ ........ ........................ ........ ........ ........ .......... 5
6 Gambling Tax: ..... ........ ........ ................ ........ ........ ........ ........ ........ ........ ........ ........ ........ ........ ......... 6
7 Gravel Tax ................................................................................................................................... 7
8 SPECIAL ASSESSMENTS (36100) (include penalties and interest) ......................................... 8 1,127,5~~
9 UCENSES AND PERMITS (32000) - Business ........................................................................ 9 18, 1)81)
10 - Non-business .............................................................. 10 1 ?? ,7~7
INTERGOVERNMENTAL REVENUES (33000)
11 FEDERAL - Community Development Block Grants (CDBG) .................................................. 11
12 - Other Federal Grants ............................... ........................ ...................................... 12 845
13 STATE - Local Government Aid ................................................................................................ 13
14 - HACA.......................................................................................................................... 14 738,668
15 - Manufactured Home HACA ..................................................:..................................... 15
16 - Taconite Homestead Credit ....... ........ ........ ........ ........ ........ ........ ........ ........ ........ ......... 16
17 - Disparity Reduction Aid (DRA) ................................................................................... 17 1,452
18 - Equalization Aid .......................................................................................................... 18 26,862
19 - Taconite Aids .............................................................................................................. 19
20 - Small City Development Grant (SCDG) ..................................................................... 20
21 - Highways .................................................................................................................... 21 33,000
22 - Other State Grants and Aids (police. fire and transition aid) ..................................... 22 108,660
23 COUNlY - Highways ................................................................................................................ 23
24 - Other County Grants ....... ................ ........ ........ ........ ................ ........ ........ ........ ........ 24
25 LOCAL UNITS - Highwa ys ........................................................................................................ 25
26 - IRRRB Grants ...... ........ ........ ........ ........ ........ ........ ........ ........ ........ ........ ............ 26
27 - Other Local Units Grants ................................................................................ 27 60,000
CHARGES FOR SERVICES (34000)
28 General Govemment (include auto registration, city hall rent, filing fees) ................................ 28 8~,084
29 Police and Fire Contracts ........................................................................................................... 29 4 ,765
30 Other Public Safety (include ambulance) .................................................................................. 30 74,714
31 Streets and Highways ................................................................................................................. 31
32 Garbage, Recycling and Other Refuse (enterprise fund accounting preferred) ............ ........ .... 32
33 Ubraries ...................................................................................................................................... 33
34 Parks and Recreation (include park dedication fees) ................................................................ 34 176,031
35' Airports ........ ........ ........ ........ ........ ................ ........ ........ ........ ........ ........ ........ ........ ........ ........ ........ 35
36 Other Service Charges (include SAC., cemetery) ................................................................... 36 118,211
37 FINES AND FORFEITS ....... ........ ........ ........ ................ ........ ........ ........ ................ ................ ........ 37 1)1,464
MISCELlANEOUS REVENUES (36200)
38 Interest Earnings (savings and investments) ............................................................................. 38 441), 1)02
39 Gambling Proceeds (pulltabs, lottery) ................................................................................ ....... 39
40 All Other Revenue (identify) .. ?~.~p..~ f.~Y... ~.?:t~. ,...~.~.~t~.t~I...P.~.~.rJ .9.~.~.~ f..P.~.~.R.t L~.~.~.'..r~.\~.) 40 5,~~~;~g~
41 TOTAL REVENUES (should equal total on financial statement) ..~~~:.!.....~.~.~.......~.:.~:.~~....~.~.~ 41
OlliER FINANCING SOURCES
42 Borrcming - Bonds Issued ........................................................................................................ 42 5,657,838
43 - Other Long-term Debt ........ ........ ........ ................................ ........ ........ ........ .......... 43
44 - Short-term Debt ............. ........ ........ ................ ........ ........ ........ ........ ........ ........ ...... 44
45 Other Financing Sources ........ ........ ........ ........ ........ ........ ........ ........ ........ ................ ........ ............ 45
46 Transfers from Enterprise Funds and Internal Service Funds ................................................... 46 256,385
47 Transfers from Governmental Funds (should equal line 50 on page 2) ................................... 47 307,818
48 TOTAL REVENUES AND 01HER FINANCING SOURCES (add lines 41-47) ......................... 48 12,200,232
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City of
Prior Lake
SECTION II: EXPENDITURES
Include all oovernmental funds and exoendable trust funds. Exclude enterprise funds (liQuor. water sewer etc.'
Amount
GENERAl GOVERNMENT (41000) (round 10 .......001 60IIarj
1 Mayor and Council ..... ........ ........ ........ ........ ........ ........ ......... ........ ........ ........ ........ ........ ........ ........ 1 20,930
2 Administration and Finance (clerk/treasurer, deputy clerk, etc.) ............................................... 2 ~ij:9a6
3 Other General Govemment (city hall. elections, assessing. audit. legal. etc.) ......................... 3
4 General Govemment - Capital Outlay ...................................................................................... 4 14,477 .
PUBUC SAFElY (-42000)
5 Police - Current Expenditures (include police renef) ................................................................ 5 930,620
6 - Capital Outlay .............................................................................................................. 6 33,877 .
7 Ambulance - Current Expenditures (include rescue squad) ................................................... 7
8 - Capital Outlay................ ........ ................ ........................ ........ ........................ ...... 8 .
9 Fire - Current Expenditures (include police relief) ................................................................... 9 133,407
10 - Capital Outlay........ ........ ........ ........ ................ ........ ........ ................ ........ ........ ........ .......... 10 42,348 .
11 Other Protection - Current Expenditures .................................................................................. 11 114,970
12 - Capital Outlay....... ................................................ ................................ ...... 12 .
STREETS AND HIGHWAYS (43100)
13 Street Maintenance and Storm Sewers ...................................................................................... 13 162,780
14 Snow and Ice Removal........ ........ ........ ........ ........ ........ ........ ........ ........ ........ ........ ........ ........ ....... 14
15 Street Engineering ............. ........ ........ ........ ........ ........ ........ ........ ........ ........ ........ ........ ........ ......... 15 331,888
16 Street Ughting ...... ........ ........ ........ ........ ........ ........ ........ ........ ........ ........ ................ ........ ........ ....... 16 42.94~
17 Street Construction - Capital Outlay (include bridges, sidewalks and storm sewers) ............ 17 414',40 .
16 Street - Other Capital Outlay...... ........ ........ ........ ........ ........ ........ ........ ........ ........ ........ ........ ....... 16 <1,1)3<1 .
REFUSE AND WASTE REMOVAL (EXCLUDE SEWER) (43200)
19 Garbage and Other Refuse Collection and Disposal (enterprise fund accounting preferred) 19
20 Other Sanitation - Current Expenditures (weed & pest control, street cleaning, recycling).... 20
21 Sanitation - Capital Outlay..... ................................ ........ ........................ ................ ................... 21 .
HEALTH (44100)
22 Current Expenditures ............. ........ ........ ........ ........ ................ ........ ........ ........ ........ ........ ........ ..... 22
23 Capital Outlay............. ........ ........ ........ ........ ........ ........ ........ ................ ........ ........ ........ ........ ........ 23 .
CULTURE AND RECREATION (45000)
24 Ubraries - Current Expenditures ........ ........ ........ ........ ........ ........ ........ ........ ................ ........ ....... 24 7,923
25 - Capital Outlay........ ........ ................ ........ ................................ ........ ........ ........ .......... 25 .
26 Parks and Recreation - Current Expenditures .......................................................................... 26 1)<17,890
27 - Capital Outlay..................................................................................... 27 Q 5,482 .
MISCEL.lANEOUS EXPENDITURES (46300-49200)
26 Housing and Redevelopment Authority - Current Expenditures (HRA) .................................. 26
29 - Capital Outlay......................................................... 29 .
30 Port Authority - Current Expenditures ....... ................ ........ ................ ........ ........ ........ ........ ....... 30
31 - Capital Outlay........ ........ ................ ........ ........ ........ ........ ........ ........ ........ .......... 31 .
32 Housing and Urban Redevebpment - Current Expenditures .................................................. 32
33 - Capital Outlay............................................................. 33 .
34 Economic Devebpment - Current Expenditures ..................................................................... 34 51,588
35 - Capital Outlay....... ........ ........ ........................ ........ ................ .......... 35 .
36 Airports - Current Expenditures ................................................................................................ 36
37 - Capital Outlay..................... ........................................................ .............................. 37 .
38 Principal PaYJllents on Bonds ..... ................ ........ ........ ........ ................ ........ ................ ........ ....... 38 1.720,000
39 Principal Payments on Other Long-term Debt and Short-tenn Debt ..................................... 39 739.41)9
40 Interest and FIScal Charges ...... ........ ................ ................ ................ ........ ........ ........ .................. 40
41 Pension Contribution (if not allocated) ....................................................................................... 41
42 Insurance (if not allocated) ......................................................................................................... 42
43 All Other Current Expenditures ........ ........ ........ ........ ........ ........ ........ ........ ........ ........ ........ ........... 43 195,153
44 All Other Capital Outlay................ ................ ........ ........ ........ ........ ........ ........ ........................ ...... 44 100,149 .
45 Capital Project Fund Outlay for Enterprise Funds (water, sewer, etc.) ..... ........ ........ ........ ......... 45 .
46 TOTAL EXPENDllURES (should equal total on financial statement) ........................................ 46 6,527,587
OTHER FINANCING USES
- --6. - -8---------
47 Principal Payments - Refunded Bond (payment to escrow agent) ......................................... 47 4, 43, 33
48 Other Financing Uses ............. ........ ........ ................ ........ ........ ........ ........ ........ ................ ........ .... 48
49 Transfers to Enterprise Funds and Internal Service Funds ....................................................... 49 6,610
50 Transfers to Governmental Funds (should equal line 47 on page 1) ........................................ 50 1~7 ~1~
51 TOTAL EXPENDllURES AND OmER FINANCING USES (add lines 46-50).......................... 51 11,4 5: 4
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vL.v' .v.... ... - 1.:..... I a::.nt"'nl'>l::. t"UI~U'=>>
. Intr>r &1or. ~ DON( lAX R->IF dol......
OPERATING STATEMENT WATER SEWER REFUSE
1 Operating AevenuM AS? ~A ~ ?H7 A 1;;7
2 Operating ~ 355.628 770 069
3 Operating Income (Loa) 131,917 17.388
.. Non-operating ~ Ontlwest,
gants. WcM, e.ssessments) 49,110
5 Non operating Expenses ~nt8l'est, etc.) 1.610
8 Net Inc:orrw ('l.oss) b8f0r. Operating Transfer. 179.417 17 .188
N:>DmoNAL ~FOff.AA llON ..
". .. ..... ...
7 Prop<<ty Taxes (.xduc:le ~1aJ assessments)
8 F.defel Grents
9 Stat. Grants
10 Local Grllnta
11 Tranm.r. In tom Oth<< FIS'Ids 6.610
12 Trarwsfer. Out to Oth<< F\.rda 256,385
13 CapItal Outlay dlllng the Veer
14 Borrowing - Bonds
15 Intecest and FlscaI Chllrges Oncluded In
operating a1atement above) 1. 610
16 Debt PaJd Bonds ".000
17 Other long term Debt
18 Outstanding Bonded Debt - End of Year 15.000
19 Amou1l of Depredation ( Included In
operating a1atement - Dne 2) 115,830 115,830
20 Acaual Basis of Accou1tina (ves or no) Yes Yes
! OPERATING STATEMENT ! ! I I IIntec- rei Service I
1 Operating ~
2 Operating ~
3 Operating Income (I..ca)
.. Non operating Aeveooes Orr\e(es1,
grants. property taxes. assessmenta)
5 Non operating Expenses Orr\e(est, 81c.)
6 Net Income (loss) before Operating Transfers I
... - ......., -,--.
ADOlT'IC>NALlNFORAATJof-f. . ......... .......... ...... I
I
7 Property Taxes (exclude speclaI assessments) I
8 Fedenll Grants I
9 State Grara
1 0 l..ocaI Grents
11 Transfer. In tom Other Fl.I'lda
12 Trarwsfera Out to Other Fl.I'lda
13 CapItal Outlay dlling the Veer
14 Borrowing Bonds
15 Intefest and FI8CaI Chllrges Oncluded in
operating a1atement above)
16 Debt PaJd Bonds
17 - Other long -term Debt
18 Outstanding Bonded Debt - End of Year
19 Arrl<xr1t of Depredation ( included In
operating a1aternent - Roe 2)
20 Acaual Basis of Accou1tina (ves or no)
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City of
Prior Lake
1YPE OF OClNDS
1 c;.neral ObI lion
2 G.O. Tax Incr~
S ~ Tax lna"ement
.. ~
5 G.O. Revenue (G.O. backed)
6 Aeverue
7 Other - E ui . Cer
8 TOTAL BONDED DEBT
9 Reflnd"1flg Bonds (Inc. In
debt 81atement - Rnea 1 -
10 HRA Indebted~ (InC. In
debt 81atement - Bnea 1 -
11 Port Aulhoflty Debt (inc. In
debt 81atement - 8nea 1-
OlHER lONG-TE~ nEBT
12 1n8tallm en! PurchaM Contract.
13 C<<1ificates of Indebted~
14 Compensated Absences
15 Qthe( long -teI"m Debt (notes)
16 TOTAL OTHER
LONG TEFf-.1 DEBT
17 SHORT - TEFf-.1 DEBT
SECTION IV: DEBT STATEMENT
BEGINNING OF YEAR ~ ~URNG lHE YEAR I PAlO DUPJNG "THE YEAR .1
48C;~OOO ..-1J 00 210 000
110 000 10 000
10
1
o
o
00
000
o 000
000
86 000
o 000
260 28
1 0
2 0
311, 33
990 000
1 301 633
SECTION V: LIABILITIES, FUND BALANCE AND RETAINED EARNINGS
LIABILITIES
SPECIAL DEBT CAPITAL TOTAL
GOVERNMENTAL FUNDS GENERAL REVENUE SERVICE POOJECTS GO~M8'iTA1.
FUND AJNDS FUNDS AJNOS FUNDS
I TOTAL LIABILITIES I 201,736 I 2,653 I 4,257,984 I 28,483 I 4,490,856 I
GOVERNMENTAL FUNDS - FUND EQUllY
FUND BAlANCE 25320
Reserved
Unreserved - Designated
Unreserved - Undesignated
TOTAL FUND EOUllY 1
SPECIAL
REVENUE
200 000
110 753
CAPITAL
POOJECTS
EXPENDABLE
TR..IST
778 703
250 733 77 703
RETAINED EARNINGS 27200
Reserved
Unreserved
TOTAL FUND EOUllY
INTEfI-.IAL
SERVICE
NON - EXPENDABU:
TR.JST
SECTION VI: BUDGET AND ACTUAL COMPARISONS
GOVERNMENTAL FUNDS
GENERAL FUND
SPECIAL REVENUE FUNDS
BUDGET
REVENUES
BUDGET AClUAL
EXPENDmJPES EXPENDmJRES
6 0 8
85,243
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Amount
to nearest dollar)
7
8
9
10
11
12
13
14 Total Ex enditures
15 Balance of Solid Waste Dis osal Fees - December 31
Amount ...
d 10nearMt dollar)
7
8
9
10
11
12
13
14
15
SECTION VIII - FINANCIAL HEALTH
1 City Employee Compliment - Number of Full-time Positions
2
- Number of Part-time Positions
1
2
41
59
Note: Exclude positions paid soley from enterprise funds. Special positions such as seasonal workers are to be reported in
iat ca 0 uall i 10 e . uNal . . Ie
3 Fringe Benefit Costs, City Employees
4 Total Payroll Costs including Fringe Benefits, City Employees
3 391,788
4 2, 17? , 844
Note: Do not include enterprise fund employees. Fringe benefrts include employer contributions for retirement, FICA,
employer paid insurance, such as health, life and disability benefits, and insurance premiums for unemployment and
workers' comoensation the value of oost-retirement benefrts and other benefits.
5 Number of Building Permits Issued
6 Value of Building Permits Issued
I Note: Include all cate.gQries: residential. commercial and industrial construction.
5 334
6 15,906,528
7 Current Year Tax Collections as a Pereent of Current Year Levy
I Note: Include property taxes for all funds. (Do not include delinquent taxes.)
7
98.37%
I
Sections I through VI of this report have been prepared from the audited financial statements of the city and include all
transactions for all funds of the city for the year ended December 31, 1992 , and is in conformance with the Uniform Chart of
AccOU~7~~nA017 _
Signature of Finance OffICer
5/17/93
Date
( 612 ) 447-4230
Phone Number
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