2022 New Hope ACFR
CITY OF NEW HOPE
NEW HOPE, MINNESOTA
ANNUAL COMPREHENSIVE FINANCIAL REPORT
FOR THE YEAR ENDED
DECEMBER 31, 2022
CITY OF NEW HOPE
HENNEPIN COUNTY, MINNESOTA
ANNUAL COMPREHENSIVE FINANCIAL REPORT
FOR THE YEAR ENDED
DECEMBER 31, 2022
TIM HOYT – ACTING CITY MANAGER
PREPARED BY: DEPARTMENT OF FINANCE
Member GFOA of U.S. and Canada
THIS PAGE INTENTIONALLY LEFT BLANK
Page
INTRODUCTORY SECTION
LETTER OF TRANSMITTAL FROM CITY MANAGER i–vi
GFOA CERTIFICATE OF ACHIEVEMENT vii
ORGANIZATIONAL CHART viii
CITY COUNCIL AND CITY OFFICIALS ix
FINANCIAL SECTION
INDEPENDENT AUDITOR’S REPORT 1–3
MANAGEMENT’S DISCUSSION AND ANALYSIS 4–14
BASIC FINANCIAL STATEMENTS
Government-Wide Financial Statements
Statement of Net Position 15
Statement of Activities 16–17
Fund Financial Statements
Governmental Funds
Balance Sheet 18–19
Reconciliation of the Balance Sheet to the Statement of Net Position 20
Statement of Revenue, Expenditures, and Changes in Fund Balances 21–22
Reconciliation of the Statement of Revenue, Expenditures, and
Changes in Fund Balances to the Statement of Activities 23
Statement of Revenue, Expenditures, and Changes in Fund Balances –
General Fund – Budget and Actual 24
Statement of Revenue, Expenditures, and Changes in Fund Balances –
Economic Development Authority Fund – Budget and Actual 25
Proprietary Funds
Statement of Net Position 26–29
Statement of Revenue, Expenses, and Changes in Net Position 30–31
Statement of Cash Flows 32–35
Notes to Basic Financial Statements 36–70
REQUIRED SUPPLEMENTARY INFORMATION
PERA – General Employees Retirement Fund
Schedule of City’s and Nonemployer Proportionate Share of Net Pension Liability 71
Schedule of City Contributions 71
PERA – Public Employees Police and Fire Fund
Schedule of City’s and Nonemployer Proportionate Share of Net Pension Liability 72
Schedule of City Contributions 72
Other Post-Employment Benefits Plan
Schedule of Changes in the City’s Total OPEB Liability and Related Ratios 73
Notes to Required Supplementary Information 74–79
CITY OF NEW HOPE
HENNEPIN COUNTY, MINNESOTA
Table of Contents
Page
SUPPLEMENTARY INFORMATION
Combining and Individual Fund Financial Statements and Schedules
Nonmajor Governmental Funds
Combining Balance Sheet 80
Combining Statement of Revenues, Expenditures, and Changes in Fund Balances 81
Nonmajor Special Revenue Funds
Subcombining Balance Sheet 82
Subcombining Statement of Revenues, Expenditures, and Changes in Fund Balances 83
Schedule of Revenues, Expenditures, and Changes in Fund Balances –
Solid Waste Management Fund – Budget and Actual 84
Nonmajor Capital Projects Funds
Subcombining Balance Sheet 85–86
Subcombining Statement of Revenues, Expenditures, and Changes in Fund Balances 87–88
Nonmajor Debt Service Funds
Subcombining Balance Sheet 89–90
Subcombining Statement of Revenues, Expenditures, and Changes in Fund Balances 91–92
General Fund
Schedule of Revenues, Expenditures, and Changes in Fund Balances – Budget and Actual 93–96
Internal Service Funds
Combining Statement of Net Position 97
Combining Statement of Revenues, Expenses, and Changes in Net Position 98
Combining Statement of Cash Flows 99
STATISTICAL SECTION (UNAUDITED)
Financial Trends
Net Position by Component 100–101
Changes in Net Position 102–105
Governmental Activities Tax Revenues by Source 106
Fund Balances of Governmental Funds 107–108
Changes in Fund Balances of Governmental Funds 109–110
General Government Tax Revenues by Source 111
Revenue Capacity
Tax Capacity, Market Value, and Estimated Actual Value of Taxable Property 112–113
Property Tax Rates – Direct and Overlapping Governments 114
Principal Property Taxpayers 115
Property Tax Levies and Collections 116
Debt Capacity
Ratios of Outstanding Debt by Type 117–118
Ratios of General Bonded Debt Outstanding 119
Direct and Overlapping Governmental Activities Debt 120
Legal Debt Margin Information 121–122
Pledged Revenue Coverage 123
Demographic and Economic Information
Demographic and Economic Statistics 124
Principal Employers 125
Operating Information
Full-Time Equivalent City Government Employees by Function 126–127
Operating Indicators by Function 128–129
Capital Asset Statistics by Function 130–131
CITY OF NEW HOPE
HENNEPIN COUNTY, MINNESOTA
Table of Contents (continued)
INTRODUCTORY SECTION
CITY OF NEW HOPE, MINNESOTA
FOR THE YEAR ENDED
DECEMBER 31, 2022
THIS PAGE INTENTIONALLY LEFT BLANK
June 13, 2023
Honorable Mayor and City Council
City of New Hope
4401 Xylon Avenue North
New Hope, MN 55428-4898
The Annual Comprehensive Financial Report (ACFR) of the City of New Hope, Minnesota (the City), for the fiscal year
ended December 31, 2022, is submitted herewith. As required by state law, this report is published annually, prior to
June 30, and submitted to the Office of the State Auditor. The form and contents of this report and the accompanying
financial statements and statistical tables are designed to meet the needs of a broad spectrum of financial statement
readers, and were prepared in conformance with standards set forth by:
1. The Governmental Accounting Standards Board (GASB)
2. The American Institute of Certified Public Accountants
3. The United States Office of Management and Budget
4. The State Auditor, State of Minnesota
5. The Government Finance Officers’ Association (GFOA) of the United States and Canada
The financial data presented in this report was prepared by the City’s finance department staff. The responsibility for the
accuracy of the presented data and the completeness and fairness of the presentation, including all disclosures, rests with
the City. We believe the data as presented is accurate in all material respects and is presented in a manner designed to
fairly set forth the financial activity of the various funds, and that all disclosures necessary to enable the reader to gain
the maximum understanding of the City’s financial activity have been included.
Accounting principles generally accepted in the United States of America require that management provide a narrative
introduction, overview, and analysis to accompany the basic financial statements in the form of the Management’s
Discussion and Analysis (MD&A). This letter of transmittal is designed to complement the MD&A and should be read
in conjunction with it. The City’s MD&A can be found immediately following the report of the independent auditors.
PROFILE OF THE GOVERNMENT
The City is a residential suburb of the City of Minneapolis with a population of 21,870. The City is 5.6 square miles in
area and is fully developed. The City was incorporated in 1953 and enjoys a diverse commercial and residential tax base.
The City operates under the “Optional Plan B” government structure as defined in Minnesota Statutes. Optional Plan B
is known as the council-manager plan. Under this plan, as specified in the statutes, “The City Council shall exercise the
legislative power of the City and determine all matters of policy. The city manager shall be the head of the administrative
branch of the City government and shall be responsible to the City Council for the proper administration of all affairs
relating to the City.” The City Council is composed of five members, including the mayor. The city manager is appointed
by the City Council.
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CITY O F NEW HOPE
4401 Xylon Avenue North • New Hope, Minnesota 55428-4898 • www.ci.new-hope.rrm.us
City Hall: 763-531-5100 • Police (non-emergency): 763-531-5170 • Public Works: 763-592-6777 • TDD: 763-531-5109
City Hall Fax: 763-531-5136 • Police Fax: 763-531-5174 • Public Works Fax: 763-592-6776
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The City’s accounting system is organized and operated on a “fund basis.” Each fund is a distinct self-balancing
accounting entity. The City’s accounting records for governmental fund types are maintained on the modified
accrual basis and the accrual basis is utilized by proprietary funds, as defined in the notes to basic financial
statements.
The City maintains a system of internal control that provides reasonable assurance of accounting data reliability,
and the safeguarding of assets against loss from unauthorized use or disposition. The concept of reasonable
assurance recognizes the cost of control should not exceed the benefits likely to be derived, and the evaluation
of costs and benefits requires estimates and judgments by management.
Budgets are maintained for the General Fund and certain special revenue funds (as noted in the notes to basic
financial statements). The city manager is directed to submit an annual budget to the City Council. Upon adoption
of the annual budget resolution by the City Council, it becomes the formal budget for city operations. Any
changes to the original budget have to be authorized by City Council action, but must maintain a balanced budget
by either recognizing additional receipts, or utilizing fund balances.
Budget controls are maintained through a system of purchase orders and monthly financial statements which
compare actual performance with the budget.
The City has reviewed its reporting entity definition in light of GASB’s pronouncements. The entities included
in the City’s report are those for which the City has financial accountability.
Blended component units, although legally separate entities, are, in substance, part of the primary government’s
operations and are included as part of the primary government. Accordingly, the Economic Development
Authority (EDA) is reported as special revenue fund of the primary government and the Housing and
Redevelopment Authority (HRA) reports a debt service fund and a capital projects fund within the primary
government.
The City provides a full range of municipal services, including: police and fire protection, culture and recreation,
public improvements, street maintenance, sanitary and storm sewer collection, water distribution, planning,
zoning and building inspection services, and general administrative services.
ECONOMIC OUTLOOK
The City is a nearly fully developed community with little vacant land available for development. The City has
a good mix of single/multi-family residential housing stock, parks and open space, and a strong
commercial/industrial tax base.
There are approximately 520 commercial/industrial/service businesses in the City, and the major employers are
listed as follows:
Major Employers
Products/Services
New Hope Based Employees
(Total Employees)
Independent School District No. 281 Education 631 (1,792)
Minnesota Masonic Home/
North Ridge Care Center Skilled nursing care facility 560
Hy-Vee, Inc. Grocery and convenience store 370
Horwitz Mechanical contractor 348
City of New Hope Government 338
Padagis Pharmaceutical and medicine manufacturing 315
St. Therese Home, Inc. Skilled nursing care facility 286 (787)
YMCA Health club 228
Liberty Diversified International Stationery supplies 200
Intermediate District No. 287 Education 199 (791)
The City has four major industrial park areas, including Science Industry Park, 49th and Quebec Avenues,
Winnetka Avenue area between 32nd and 36th Avenues, and north of Medicine Lake Road on Nevada Avenue.
The major shopping centers/areas in the City include: Midland Shopping Center, Winnetka Commons Shopping
Center, New Hope Mall, Winnetka Center, Post Haste Square, and the 42nd Avenue Redevelopment District.
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Business Assistance Programs
Local commercial/industrial businesses are extremely important to the City. The City Council has undertaken
programs and initiatives to address both commercial and industrial properties. These programs focus on:
1} retaining existing businesses, 2} assisting with expansions, 3} attracting new businesses to vacant available
buildings, 4} attracting new construction to a limited number of available vacant sites, and 5} improving
communication with businesses and responding more effectively to business concerns and inquiries. The City
Council has continued the Outstanding Business Award Program initiated in 2006, to recognize the City’s
businesses’ contributions to the local community.
In 2009, the Business Networking Group forum was established to share information and improve
communications between businesses and the City and the forum continued through 2022. The City is also a
long-time member of the TwinWest Chamber of Commerce. The City has also partnered with Hennepin County
and Open to Business, a company that provides free business advice and also provides gap financing.
In 2022, $17,602,045 of reinvestment was approved in the City in construction permits. The City will work to
increase the momentum to continually expand the tax base while continuing to provide the high level of services
delivered to the residents, businesses, and property owners of the City.
PLANNING AND DEVELOPMENT
The following planning and development activities occurred in 2022:
Windsor Ridge
SVK Development constructed 32 new single-family homes on an 8.7-acre undeveloped site that was owned by
the City for many years. In the fall of 2018, the City received six proposals from four developers for the site.
After careful consideration, SVK Development was selected as the preferred developer for the site.
SVK Development constructed 32 single-family homes on 65-foot-wide lots. All of the homes sold shortly after
construction for an average price of $430,000. The project added a total of $13.76 million in housing value to
the City.
Hy-Vee Aisles Online
In 2021, the City Council approved an amendment to Hy-Vee’s Planned Unit Development for the construction
of a 1,200 square-foot drive-thru kiosk on the west side of the grocery store. This included four drive through
grocery pick-up lanes with an overhead canopy, new curbing, and landscaping around the building. Customers
purchase their groceries online and drive to the kiosk to pick them up. The groceries are delivered directly to the
kiosk from the main Hy-Vee store. Although the kiosk was in use in late 2021, the project was completed,
including the final landscaping, in the spring of 2022.
Escuela Exitos
In April of 2021, the City Council approved a Conditional Use Permit for Escuela Exitos to open a Spanish
Immersion school at 4741 Zealand Avenue North. The kindergarten through 5th grade charter school is a
two-way dual language Spanish/English immersion school. The school served approximately 165 students
during the 2021–2022 school year with planned enrollment increasing and capping out at 390 students by the
2023–2024 school year. The school also plans to add one grade each year until they have 12th grade students,
this way the school will grow organically with students who are already attending. The last of the exterior
projects, including new signage, a new playground, and new fencing were completed in the early summer of
2022.
Pallet One, MN
Pallet One, MN moved to 9210 Science Center Drive in New Hope in June of 2022. Pallet One, MN is one of
the largest new pallet manufacturers in the United States, as well as one of the largest pallet recyclers in the
country. The company obtained a Conditional Use Permit for the storage of trailers in an open outdoor storage
area shortly after purchasing the building. Improvements to the site included new screening measures, pavement,
and curbing.
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Housing
The City’s commitment to maintaining its housing stock is supported through a variety of cooperative projects
and programs. Approximately $7,246,433 was reinvested in the City’s housing stock in 2022 for private home
construction, additions, and/or remodeling projects.
1. Housing rehabilitation programs:
a. Community Development Block Grant (CDBG) Housing Rehabilitation Program –
administered by Hennepin County:
i. CDBG funded activity in 2021 continued with the expenditure of previously allocated
CDBG funds. The City contributed $76,250 in funds towards the acquisition of
8720 47th Avenue North by Habitat for Humanity. The home was rehabilitated in
2021. Funds in 2022 were allocated to the county’s home rehab program, which offers
deferred loans for home repairs and maintenance to income-qualified residents of the
City.
ii. The City continued to operate its scattered site housing program by acquiring multiple
properties for demolition and new construction. Since 2014, the Economic
Development Authority has acquired 21 properties, resulting in the creation of
26 vacant lots. Five of the lots were large enough to split into two buildable lots and
were sold to developers for the construction of new single-family, owner-occupied
homes. The City has two other properties under contract for purchase. These projects
have increased property values by more than $5 million and brought additional step-up
housing options to the City. The primary focus of the program is to target distressed
single-family properties throughout the City, with the goal of improving residential
neighborhoods.
b. Rehabilitation and resell:
i. The City has purchased two distressed properties for rehabilitation in the last six years.
The City chose to rehabilitate the home at 3984 Zealand Avenue North as it was too
valuable to demolish. It sold for $295,000 in 2018. The City acquired the property at
3924 Utah Avenue North in 2018, and coordinated a rehabilitation project valued at
more than $180,000. The home sold for $375,000 in 2020. The City has a goal of
breaking even on such projects and will invest all available resources into the home to
create the highest valued product possible.
c. Curbside Appeal Reimbursement Program:
i. The curbside appeal reimbursement program launched in the summer of 2022 to help
single- and two-family residential property owners with making upgrades to the
exterior of their homes in areas that are visible from the street. The program reimburses
property owners for 25 percent of eligible project costs with a maximum
reimbursement of $5,000. Goals of the program are to improve the City’s overall
housing stock, instill confidence into neighborhoods, and increase home values. To
date, 13 projects with a combined value of about $120,000 have been approved.
2. Housing maintenance programs:
a. Code compliance inspections – 1,124 inspections completed in 2022.
b. Rental housing program and inspections:
i. A rental registration permit program, which requires the registration and inspection of
all rental units in the City, was implemented in 2006 for single-family and 2007 for
multi-family units.
ii. A total of 501 single-family rental units are registered with the City.
iii. A total of 3,857 multi-family rental units are registered with the City.
c. Multi-Family Property Manager’s Association – quarterly meetings.
d. Partnership with Center for Energy and Environment and Hennepin County for fix-up loans
and grants.
3. Metropolitan Council Livable Communities Act – annually renewed by the City.
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PARKS AND RECREATION
The City continues to provide residents with a vast array of park amenities and recreation opportunities at an
affordable cost. In 2022, staff continued to maintain 18 parks, four additional school district parks (summer
only), two sheets of indoor ice at the ice arena, and a par 3 nine-hole golf course. In addition, the City has
programs at the New Hope Community Gyms during non-school time.
As the year progressed, more and more people were comfortable participating in programs and special events.
The number of recreation program registrations increased 6 percent over 2021 to 6,867 registrations, and special
event participation saw an increase of approximately 44 percent. The most popular programs continued to be the
youth dance and gymnastics classes, but other well received programs included sports camps/classes, art classes,
playgrounds, piano/guitar lessons and others. Offerings at the performance center continued to include the
summer musicals, movies and music in the park, theater classes, and other special events.
During 2022, several park projects took place, including the replacement of the playground at Hidden Valley
Park, court resurfacing of the basketball court at Lions Park, and crack filling of the basketball court at Liberty
Park. Several smaller projects took place, including engineer wood fiber refresh at several playgrounds, new
picnic tables at the pavilion at Hidden Valley Park, display boards at Hidden Valley and Civic Center parks,
two new portable enclosures at Civic Center Park, an additional bike rack at the Aquatic Park, and new park
signage at Elm Grove, Holiday, Liberty, Lighted, and Hidden Valley parks. During the 2021–2022 winter season,
parks staff continued to plow a section of trail at Hidden Valley, Northwood, Lions, and Meadow Lake parks,
with Civic Center Park being added in the fall of 2021. Outdoor skating areas at Hidden Valley, Lions, and
Liberty parks were maintained. Buckthorn removal was continued in several parks and an extensive number of
ash trees infected with emerald ash borer were removed.
The second season at the Aquatic Park was successful and was open June 4, 5 and June 9–August 21. Open swim
hours were available during the week from 1–8 p.m. and on the weekends from 11 a.m.–7 p.m. The open swim
attendance in 2022 was 49,337 (not including ages under 2). On June 20th, the pool set a single day attendance
record with 1,813 guests during a hot 102-degree day. In the mornings, swim lessons, water walking, and lap
swimming took place. Weekday mornings were also when the 50-meter pool was utilized by various swim teams.
The New Hope Crystal Plymouth (NHCP) swim club, along with other local clubs used the 50-meter pool for
practices and swim meets. Over the summer, the NHCP swim club held three separate meets, including a 3-day
all-day regional meet in the middle of July. The staffing levels increased to a much more comfortable level
allowing the pool to operate more efficiently and safely. Throughout the summer, approximately 90 employees
worked at the pool, with 42 returning from 2021. With the lifeguard staffing reaching normal levels, the Wibit
(inflatable platforms) was able to be used on the weekends and was extremely popular.
The ice arena once again offered year-round use of ice time for youth, adult recreational, league hockey and
skating lessons. Facility use and program participation numbers were strong. Rented ice hours were 4,247, which
was a decrease of 169 hours from 2021 (due in part from the hockey season extended into April 2021 and the
north rink ice being out for several weeks in 2022), open skating increased by 39 percent (2,283), skate rentals
increased by 76 percent (857) and skate lesson registrations increased by 13 percent (220). Improvement projects
included the replacement of the dasher boards and glass for the north ice arena and the continuation of the
cameras and door security project. Other repairs were completed, including replacement of the motor, VFD and
sensor for the air handler in the community room, replacement of several door closers and locks, purchased new
blades for the Zamboni’s and the drywall in both main entrances was repaired. The advertising agreement and
concession stand agreement with the Armstrong Cooper Youth Hockey Association and the dryland training
agreement with Charleston Overspeed all continued.
The Golf Course continued to offer leagues, lessons, tournaments, open golf, and picnic rentals. It was another
busy year for the golf course, although the course didn’t open until April 8 and closed November 10. Rounds
from March through May were down from the previous two years because of the cold weather, but June, July,
August, and October were slightly above 2021 in rounds, with September just about even. League participation
and equipment rentals numbers were good, and the merchandise and concession sales remained strong; with all
exceeding budgeted amounts. The number of clubhouse rentals and tournaments also increased from 2021. For
the second year in a row, staff dealt with drought conditions, but the course remained in good shape, due to all
of the additional watering. In 2022, HVAC in the clubhouse was replaced, some changes were made to
concession equipment in the clubhouse – a new 1-keg dispenser was added, the 3-keg dispenser was replaced
with a 4-keg dispenser, and the ice machine and drinking fountain were both replaced. A golf course utility cart
was purchased, and the golf cart lease continued. The parking agreement with Ironwood Apartments continued.
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PROPERTY TAX PROCESS
Preliminary tax levies have to be sent to the county auditor by September 30th. This levy can be lowered at a
later date, but cannot be increased. The county sends out notices to all property owners informing them of
proposed property taxes and the dates of public hearings by the various taxing districts. The final budget is
adopted by the City in December at a City Council meeting after the public hearing.
OTHER PERTINENT INFORMATION
Independent Audit – As required by Minnesota Statutes, city policy requires an annual audit of all city accounts
to be made by independent certified public accountants selected by the City Council. This requirement has been
complied with and the opinion of Malloy, Montague, Karnowski & Radosevich & Co., P.A. (MMKR) is included
with this report.
Claims and Litigation – The City had the usual and customary types of miscellaneous claims pending at
year-end, mostly of a minor nature and entirely covered by insurance carried for that purpose.
Long-Term Financial Planning – Management provided an updated long-term plan to the City Council in 2022
that highlights the tax effect of major capital and operating decisions. This is an important document when
preparing future budgets.
AWARDS AND ACKNOWLEDGEMENTS
The Certificate of Achievement for Excellence in Financial Reporting – The GFOA of the United States and
Canada awarded a Certificate of Achievement for Excellence in Financial Reporting to the City for its ACFR
for the fiscal year ended December 31, 2021. This was the 14th consecutive year that the government has
achieved this prestigious award. In order to be awarded a Certificate of Achievement, a government must publish
an easily readable and efficiently organized ACFR. This report must satisfy both generally accepted accounting
principles and applicable legal requirements.
A Certificate of Achievement is valid for a period of one year only. We believe that our current ACFR continues
to meet the Certificate of Achievement Program’s requirements and we are submitting it to the GFOA of the
United States and Canada to determine its eligibility for another certificate.
Preparation of this report could not have been accomplished without the professional, efficient, and dedicated
services of the entire staff of the Department of Finance, Abdo Financial Solutions, LLC (the City’s contracted
finance director) other city departments, and the staff of MMKR.
We wish to express our appreciation to all the contributors for their efforts to complete this report.
Respectfully submitted,
Tim Hoyt
Acting City Manager
Government Finance Officers Association
Certificate of
Achievement
for Excellence
in Financial
Reporting
Presented to
City of New Hope
Minnesota
For its Annual Comprehensive
Financial Report
For the Fiscal Year Ended
December 31, 2021
Executive Director/CEO
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City of New HopeMay 2023Parks & RecreationRecreationParksRecreation FacilitiesForestryPolice Patrol Investigation Community Services Animal Control Crime Prevention School Liaison Reserves ExplorersPublic WorksUtility BillingUtilitiesCentral GarageStreetsParks MaintenanceHuman Resources / Administrative ServicesHuman ResourcesSafetyInfo TechnologyCommunicationsRisk Mgmt/InsuranceFinance/AccountingPayrollCommunity DevelopmentInspectionsPermitsHousingEconomic DevelopmentPlanning/ZoningPlanning CommissionCitizen Advisory CommissionHuman Rights CommissionPersonnel BoardCity AttorneySteve Sondrall/Stacy WoodsCity EngineerStantecFiscal AdvisorsAbdoDorsey and WhitneyEhlersKennedy & GravenWest Metro Fire‐Rescue DistrictFire SuppressionFire PreventionEmergency Mgmt. Coord.RescueExplorersCity CouncilPolicyEDA BoardHRA BoardCity ManagerChief AdministratorGovernment RelationsBudgetCouncil RelationsEmergency ManagementFire BoardEDA Executive DirectorHRA Executive DirectorAuditJWC CommissionHRG RepresentativeAbdo ContractCity Clerk/TreasurerCouncil RelationsElectionsLicensingInsuranceCity Hall FacilityResidentsCity PlannerAlan Brixius-viii-
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Term Expires
Kathi Hemken Mayor 12/31/2024
John Elder Councilmember 12/31/2026
Andrew Hoffe Councilmember 12/31/2024
Michael Isenberg Councilmember 12/31/2024
Jonathan London Councilmember 12/31/2026
Tim Hoyt Acting City Manager Appointed
Rich Johnson Director of Human Resources and Administrative Services Appointed
Jeff Sargent Director of Community Development Appointed
Susan Rader Director of Parks and Recreation Appointed
Tim Hoyt Chief of Police Appointed
Bernie Weber Director of Public Works Appointed
Valerie Leone City Clerk Appointed
CITY COUNCIL
CITY OFFICIALS
CITY OF NEW HOPE
HENNEPIN COUNTY, MINNESOTA
City Council and City Officials
Year Ended December 31, 2022
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FINANCIAL SECTION
CITY OF NEW HOPE, MINNESOTA
FOR THE YEAR ENDED
DECEMBER 31, 2022
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INDEPENDENT AUDITOR’S REPORT
To the City Council and Management
City of New Hope, Minnesota
OPINIONS
We have audited the accompanying financial statements of the governmental activities, the business-type
activities, each major fund, and the aggregate remaining fund information of the City of New Hope,
Minnesota (the City) as of and for the year ended December 31, 2022, and the related notes to the financial
statements, which collectively comprise the City’s basic financial statements as listed in the table of
contents.
In our opinion, the financial statements referred to above present fairly, in all material respects, the
respective financial position of the governmental activities, the business-type activities, each major fund,
and the aggregate remaining fund information of the City at December 31, 2022, and the respective changes
in financial position and, where applicable, cash flows thereof, and the budgetary comparisons for the
General Fund and Economic Development Authority Special Revenue Fund for the year then ended, in
accordance with accounting principles generally accepted in the United States of America.
BASIS FOR OPINIONS
We conducted our audit in accordance with auditing standards generally accepted in the United States of
America and the standards applicable to financial audits contained in Government Auditing Standards,
issued by the Comptroller General of the United States. Our responsibilities under those standards are
further described in the Auditor’s Responsibilities for the Audit of the Financial Statements section of our
report. We are required to be independent of the City and to meet our other ethical responsibilities in
accordance with the relevant ethical requirements relating to our audit. We believe that the audit evidence
we have obtained is sufficient and appropriate to provide a basis for our audit opinions.
EMPHASIS OF MATTER
Change in Accounting Principle
As described in Note 1 to the basic financial statements, in fiscal 2022, the City adopted new accounting
guidance, Governmental Accounting Standards Board (GASB) Statement No. 87, Leases. Our opinion is
not modified with respect to this matter.
(continued)
C E R T I F I E D
A C C O U N T A N T S
P UBLIC
PRINCIPALS
Thomas A. Karnowski, CPA
Paul A. Radosevich, CPA
William J. Lauer, CPA
James H. Eichten, CPA
Aaron J. Nielsen, CPA
Victoria L. Holinka, CPA/CMA
Jaclyn M. Huegel, CPA
Kalen T. Karnowski, CPA
Malloy, Montague, Karnowski, Radosevich & Co., P.A.
5353 Wayzata Boulevard • Suite 410 • Minneapolis, MN 55416 • Phone: 952-545-0424 • Fax: 952-545-0569 • www.mmkr.com
Standard Letterhead-r2.qxp_167639 Letterhead-RV1 9/7/18 6:34 PM Page 1
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RESPONSIBILITIES OF MANAGEMENT FOR THE FINANCIAL STATEMENTS
Management is responsible for the preparation and fair presentation of the financial statements in
accordance with accounting principles generally accepted in the United States of America, and for the
design, implementation, and maintenance of internal control relevant to the preparation and fair presentation
of financial statements that are free from material misstatement, whether due to fraud or error.
In preparing the financial statements, management is required to evaluate whether there are conditions or
events, considered in the aggregate, that raise substantial doubt about the City’s ability to continue as a
going concern for 12 months beyond the financial statement date, including any currently known
information that may raise substantial doubt shortly thereafter.
AUDITOR’S RESPONSIBILITIES FOR THE AUDIT OF THE FINANCIAL STATEMENTS
Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free
from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our
opinions. Reasonable assurance is a high level of assurance, but is not absolute assurance and, therefore, is
not a guarantee that an audit conducted in accordance with generally accepted auditing standards and
Government Auditing Standards will always detect a material misstatement when it exists. The risk of not
detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud
may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal
control. Misstatements are considered material if there is a substantial likelihood that, individually or in the
aggregate, they would influence the judgment made by a reasonable user based on the financial statements.
In performing an audit in accordance with generally accepted auditing standards and Government Auditing
Standards, we:
• Exercise professional judgment and maintain professional skepticism throughout the audit.
• Identify and assess the risks of material misstatement of the financial statements, whether due to
fraud or error, and design and perform audit procedures responsive to those risks. Such procedures
include examining, on a test basis, evidence regarding the amounts and disclosures in the financial
statements.
• Obtain an understanding of internal control relevant to the audit in order to design audit procedures
that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the
effectiveness of the City’s internal control. Accordingly, no such opinion is expressed.
• Evaluate the appropriateness of accounting policies used and the reasonableness of significant
accounting estimates made by management, as well as evaluate the overall presentation of the
financial statements.
• Conclude whether, in our judgment, there are conditions or events, considered in the aggregate,
that raise substantial doubt about the City’s ability to continue as a going concern for a reasonable
period of time.
We are required to communicate with those charged with governance regarding, among other matters, the
planned scope and timing of the audit, significant audit findings, and certain internal control related matters
that we identified during the audit.
(continued)
-3-
REQUIRED SUPPLEMENTARY INFORMATION
Accounting principles generally accepted in the United States of America require that the management ’s
discussion and analysis and the required supplementary information (RSI), as listed in the table of contents,
be presented to supplement the basic financial statements. Such information is the responsibility of
management and, although not a part of the basic financial statements, is required by the GASB, who
considers it to be an essential part of financial reporting for placing the basic fin ancial statements in an
appropriate operational, economic, or historical context. We have applied certain limited procedures to the
RSI in accordance with auditing standards generally accepted in the United States of America, which
consisted of inquiries of management about the methods of preparing the information and comparing the
information for consistency with management’s responses to our inquiries, the basic financial statements,
and other knowledge we obtained during our audit of the basic financial statements. We do not express an
opinion or provide any assurance on the information because the limited procedures do not provide us with
sufficient evidence to express an opinion or provide any assurance.
SUPPLEMENTARY INFORMATION
Our audit was conducted for the purpose of forming opinions on the financial statements that collectively
comprise the City’s basic financial statements. The accompanying combining and individual fund financial
statements and schedules, as listed in the table of contents, are presented for the purpose of additional
analysis and are not a required part of the basic financial statements. Such information is the responsibility
of management and was derived from, and relates directly to, the underlying accounting and other r ecords
used to prepare the basic financial statements. The information has been subjected to the auditing
procedures applied in the audit of the basic financial statements and certain additional procedures, including
comparing and reconciling such information directly to the underlying accounting and other records used
to prepare the basic financial statements or to the basic financial statements themselves, and other additional
procedures in accordance with auditing standards generally accepted in the United States of America. In
our opinion, the supplementary information is fairly stated, in all material respects, in relation to the basic
financial statements as a whole.
OTHER INFORMATION
Management is responsible for the other information included in the annual report. The other information
comprises the introductory and statistical sections, but does not include the basic financial statements and
our auditor’s report thereon. Our opinions on the basic financial statements do not cover the other
information, and we do not express an opinion or any form of assurance thereon.
In connection with our audit of the basic financial statements, our responsibility is to read the other
information and consider whether a material inconsistency exists between the other information and the
basic financial statements, or the other information otherwise appears to be materially misstated. If, based
on the work performed, we conclude that an uncorrected material misstatement of the other information
exists, we are required to describe it in our report.
OTHER REPORTING REQUIRED BY GOVERNMENT AUDITING STANDARDS
In accordance with Government Auditing Standards, we have also issued our report dated June 13, 2023 on
our consideration of the City’s internal control over financial reporting and on our tests of its compliance
with certain provisions of laws, regulations, contracts, grant agreements, and other matters. The purpose of
that report is solely to describe the scope of our testing of internal control over financial reporting and
compliance and the results of that testing, and not to provide an opinion on the effectiveness of the City ’s
internal control over financial reporting or on compliance. That report is an integral part of an audit
performed in accordance with Government Auditing Standards in considering the City’s internal control
over financial reporting and compliance.
Minneapolis, Minnesota
June 13, 2023
THIS PAGE INTENTIONALLY LEFT BLANK
CITY OF NEW HOPE
Management’s Discussion and Analysis
Year Ended December 31, 2022
-4-
As management of the City of New Hope, Minnesota (the City), we have provided readers of the City’s
financial statements with this narrative overview and analysis of the financial activities of the City for the
fiscal year ended December 31, 2022. We encourage readers to consider the information presented here in
conjunction with additional information that we have furnished in our letter of transmittal, located earlier
in this report.
FINANCIAL HIGHLIGHTS
• The assets and deferred outflows of resources of the City exceeded its liabilities and deferred
inflows of resources at the close of the most recent fiscal year by $100,927,731 (net position). Of
this amount, $30,306,053 (unrestricted net position) may be used to meet the City’s ongoing
obligations to citizens and creditors.
• The City’s total net position increased by $4,854,216. This was a result of governmental activities
and business type activities increasing net position by $2,354,713 and $2,499,503, respectively.
• As of the close of the current fiscal year, the City’s governmental funds reported combined
ending fund balances of $31,403,877, an increase of $1,349,091 in comparison with the
prior year. Approximately 18.3 percent of this total amount, $5,750,212, is available for spending
at the City’s discretion (unassigned fund balance).
• At the end of the current fiscal year, unassigned fund balance for the General Fund was
$7,655,481, or 43.8 percent, of total General Fund 2022 expenditures and transfers out.
• The City’s total bonded debt decreased by $3,522,412 (7.2 percent) during the current fiscal year.
• The City implemented Governmental Accounting Standards Board (GASB) Statement No. 87,
Leases, in fiscal 2022. This standard changed the way lease transactions are reported by the City.
Implementation resulted in the reporting of new lease receivables and related deferred inflows of
financial resources for certain agreements where the City is the lessor, and new “r ight-to-use”
leased assets and related lease liabilities for certain agreements where the City is the lessee.
However, implementation did not result in the restatement of beginning net position or fund
balances.
OVERVIEW OF THE FINANCIAL STATEMENTS
The management’s discussion and analysis is intended to serve as an introduction to the City’s basic
financial statements, which are comprised of three components: 1) government-wide financial statements,
2) fund financial statements, and 3) notes to basic financial statements. This report also contains other
supplementary information in addition to the basic financial statements.
The financial statements include notes that explain some of the information in the financial statements
and provide more detailed data. The statements are followed by a section of combining and individual
fund financial statements and schedules, which further explain and support the information in the
financial statements.
-5-
Figure A shows how the various parts of this annual report are arranged and related to one another:
Management’s
Discussion and
Analysis
Basic Financial
Statements
Required
Supplementary
Information
Government-Wide
Financial Statements
Fund Financial
Statements
Notes to Basic
Financial Statements
Summary Detail
Figure A
Required Components of the City’s
Annual Comprehensive Financial Report
Government-Wide Financial Statements – The government-wide financial statements are designed to
provide readers with a broad overview of the City’s finances, in a manner similar to private sector
businesses.
The Statement of Net Position presents information on all of the City’s assets, deferred outflows of
resources, liabilities, and deferred inflows of resources, with the difference reported as net position. Over
time, increases or decreases in net position may serve as a useful indicator of whether the financial
position of the City is improving or deteriorating.
The Statement of Activities presents information showing how the City’s net position changed during the
most recent fiscal year. All changes in net position are reported as soon as the underlying event giving
rise to the change occurs, regardless of the timing of related cash flows. Thus, revenues and expenses are
reported in this statement for some items that will only result in cash flows in future fiscal periods
(uncollected taxes and earned but unused vacation leave).
Both of the government-wide financial statements distinguish functions of the City that are principally
supported by taxes and intergovernmental revenues (governmental activities) from other functions that are
intended to recover all or a significant portion of their costs through user fees and charges (business -type
activities). The governmental activities include general government, public safety, public works, culture
and recreation, economic development, and interest on long-term debt. The business-type activities of the
City include sewer utility, water utility, golf course, ice arena, storm water, and street lighting.
Fund Financial Statements – A fund is a grouping of related accounts that is used to maintain control
over resources segregated for specific activities or objectives. The City, like other local governments, uses
fund accounting to ensure and demonstrate compliance with finance-related legal requirements. All of the
funds of the City can be divided into two categories: governmental funds and proprietary funds.
-6-
Governmental Funds – Governmental funds account for essentially the same functions reported as
governmental activities in the government-wide financial statements. However, unlike the
government-wide financial statements, governmental fund financial statements focus on near-term
inflows and outflows of spendable resources, and the balances of spendable resources available at the
fiscal year-end. Such information may be useful in evaluating a government’s near-term financing
requirements.
Because the focus of governmental funds is narrower than that of the government-wide financial
statements, it is useful to compare the information presented for governmental funds with similar
information presented for governmental activities in the government-wide financial statements. By doing
so, readers may better understand the long-term impact of the government’s near-term financing
decisions. Both the governmental funds Balance Sheet and Statement of Revenue, Expenditures, and
Changes in Fund Balances provide a reconciliation to facilitate the comparison between governmental
funds and governmental activities.
The City maintains several individual governmental funds. Information is presented separately in the
governmental fund Balance Sheet and the governmental fund Statement of Revenues, Expenditures, and
Changes in Fund Balances for the General, Economic Development Authority, HRA Construction, Street
Infrastructure, Park Infrastructure, and HRA Bonds funds, all of which are considered to be major funds.
Data from the remaining governmental funds are combined into a single, aggregated presentation.
Individual fund data for each of these nonmajor governmental funds is provided in the form of combining
statements or schedules elsewhere in this report.
The City adopts annual appropriated budgets for its General Fund and the Economic Development
Authority and Solid Waste Management Special Revenue Funds. A budgetary comparison statement has
been provided for these funds to demonstrate compliance with the adopted budgets.
Proprietary Funds – The City maintains two different types of proprietary funds. Enterprise funds are
used to report the same functions presented as business-type activities in the government-wide financial
statements. The City uses enterprise funds to account for its sewer utility, water utility, golf course, ice
arena, storm water, and street lighting operations. Internal service funds are an accounting device used to
accumulate and allocate costs internally among the City’s various functions. The City uses internal
service funds to account for distribution of vehicle and equipment costs, government-wide costs of
insurance coverage and employee leave, and information technology cost allocation. Because all of these
services predominately benefit governmental rather than business-type functions, they have been included
within governmental activities in the governmental-wide financial statements.
Proprietary funds provide the same type of information as the government-wide financial statements, only
in more detail. The proprietary fund financial statements provide separate information for each of the
enterprise funds, all of which are considered to be major funds of the City. Internal service funds are
combined into a single, aggregated presentation in the proprietary fund financial statements. Individual
fund data for the internal service funds is provided in the form of combining statements elsewhere in this
report.
Notes to Basic Financial Statements – The notes to basic financial statements provide additional
information that is essential to a full understanding of the data provided in the government-wide and fund
financial statements.
Other Information – Required supplementary information (RSI) on the City’s other post-employment
benefit and pension plans is presented following the notes to basic financial statements. Combining and
individual fund statements and schedules for nonmajor funds, along with other city information, are
presented as supplementary information immediately following the RSI. Statistical tables are presented as
the last section in this report.
The statistical section presents information as a context for understanding what the information in the
financial statements, note disclosures, and required supplementary information says about the City’s
overall financial health. The information in the statistical section is not audited.
-7-
GOVERNMENT-WIDE FINANCIAL ANALYSIS
As noted earlier, changes in net position may serve over time as a useful indicator of the City’s financial
condition. The City’s assets and deferred outflows of resources exceeded its liabilities and deferred
inflows of resources by $100,927,731 at the end of the 2022 fiscal year.
A portion of the City’s net position (60.5 percent) reflects its investment in capital assets (e.g., land,
buildings, vehicles and equipment); less any related debt used to acquire those assets that is still
outstanding. The City uses these capital assets to provide services to citizens; consequently, these assets
are not available for future spending. Although the City’s investment in its capital assets is reported net of
related debt, it should be noted that the resources needed to repay this debt must be p rovided from other
sources, since the capital assets themselves cannot be used to liquidate these liabilities.
The following is a summary of the City’s net position at the end of the last two fiscal years:
2022 2021 2022 2021 2022 2021
Current and other assets 48,419,319$ 45,444,088$ 9,633,435$ 8,282,332$ 58,052,754$ 53,726,420$
Capital assets, net 74,538,608 74,711,410 30,312,273 29,605,378 104,850,881 104,316,788
Total assets 122,957,927 120,155,498 39,945,708 37,887,710 162,903,635 158,043,208
Deferred outflows of resources
Deferred pension resources 9,447,454 5,190,055 339,118 492,108 9,786,572 5,682,163
Long-term liabilities
(including current portion)56,925,345 48,059,912 7,515,980 7,773,573 64,441,325 55,833,485
Other liabilities 1,948,167 2,123,349 1,189,912 927,287 3,138,079 3,050,636
Total liabilities 58,873,512 50,183,261 8,705,892 8,700,860 67,579,404 58,884,121
Deferred inflows of resources
Deferred pension resources 504,019 7,372,502 17,185 616,712 521,204 7,989,214
Lease revenue for subsequent years 3,604,466 – – – 3,604,466 –
Resources received in advance 57,402 778,521 – – 57,402 778,521
Total deferred inflows of resources 4,165,887 8,151,023 17,185 616,712 4,183,072 8,767,735
Net position
Net investment in capital assets 37,045,401 34,985,781 24,036,351 22,607,046 61,081,752 57,592,827
Restricted 9,539,926 8,598,311 – – 9,539,926 8,598,311
Unrestricted 22,780,655 23,427,177 7,525,398 6,455,200 30,306,053 29,882,377
Total net position 69,365,982$ 67,011,269$ 31,561,749$ 29,062,246$ 100,927,731$ 96,073,515$
Governmental Activities Business-Type Activities Total
An additional portion of the City’s net position, $9,539,926, represents resources that are subject to
external restrictions on how they may be used. The remaining balance of unrestricted net position,
$30,306,053, may be used to meet the City’s ongoing obligations to citizens and creditors.
At the end of the current fiscal year, the City is able to report a positive balance in all three categories of
net position for both the governmental activities and the business-type activities. This was also the case at
the previous year-end.
The implementation of GASB Statement No. 87 mainly resulted in increases to current and other assets
and deferred inflows of resources. Changes in the City’s proportionate share of two state-wide defined
benefit pension plans administered by the Minnesota Public Employees Retirement Association
contributed to the changes in long-term liabilities and deferred outflows/inflows of resources.
-8-
The following table summarizes the changes in the City’s net position for the last two fiscal years:
2022 2021 2022 2021 2022 2021
Revenues
Program revenues
Charges for services 2,734,540$ 2,335,380$ 12,807,203$ 12,681,193$ 15,541,743$ 15,016,573$
Operating grants and
contributions 1,235,241 1,093,760 108,135 146,755 1,343,376 1,240,515
Capital grants and
contributions 851,233 720,699 13,756 13,475 864,989 734,174
General revenues
Property taxes 18,203,975 17,357,910 – – 18,203,975 17,357,910
Tax increments 2,219,677 2,118,199 – – 2,219,677 2,118,199
Franchise taxes 959,744 962,395 – – 959,744 962,395
Grants and contributions not
restricted to specific programs 905,573 3,155,397 – – 905,573 3,155,397
Unrestricted investment earnings
(charges)(838,869) (22,179) (292,859) 39,829 (1,131,728) 17,650
Gain on sale of capital assets 9,238 70,300 – – 9,238 70,300
Total revenues 26,280,352 27,791,861 12,636,235 12,881,252 38,916,587 40,673,113
Expenses
General government 2,991,397 1,152,633 – – 2,991,397 1,152,633
Public safety 9,224,111 7,764,051 – – 9,224,111 7,764,051
Public works 4,716,237 4,295,427 – – 4,716,237 4,295,427
Culture and recreation 3,845,915 3,095,760 – – 3,845,915 3,095,760
Economic development 1,374,777 1,434,986 – – 1,374,777 1,434,986
Interest on long-term debt 1,440,518 1,518,351 – – 1,440,518 1,518,351
Sewer utility – – 3,057,860 2,973,301 3,057,860 2,973,301
Water utility – – 4,732,554 4,813,286 4,732,554 4,813,286
Golf course – – 386,668 368,659 386,668 368,659
Ice arena – – 1,176,353 1,095,343 1,176,353 1,095,343
Storm water – – 958,733 991,031 958,733 991,031
Street lighting – – 157,248 135,899 157,248 135,899
Total expenses 23,592,955 19,261,208 10,469,416 10,377,519 34,062,371 29,638,727
Change in net position
before transfers 2,687,397 8,530,653 2,166,819 2,503,733 4,854,216 11,034,386
Transfers – internal activities (332,684) (336,752) 332,684 336,752 – –
Change in net position 2,354,713 8,193,901 2,499,503 2,840,485 4,854,216 11,034,386
Net position
Beginning 67,011,269 58,817,368 29,062,246 26,221,761 96,073,515 85,039,129
Ending 69,365,982$ 67,011,269$ 31,561,749$ 29,062,246$ 100,927,731$ 96,073,515$
TotalGovernmental Activities Business-Type Activities
Governmental activities increased the City’s net position by $2,354,713 in 2022, while business-type
activities increased net position by $2,499,503. Total revenues for 2022 were $1,756,526 lower than the
prior year. The two largest factors in this decrease were a $2,249,824 decrease in grants and contributions
not restricted to specific programs due to a nonrecurring federal grant award utilized in the prior year, and
a $1,149,378 decrease in unrestricted investment earnings caused by fair value adjustments to the City’s
investment portfolio. These decreases were partially offset by a $525,170 increase in charges for services,
and an increase of $846,065 in property taxes. Government-wide expenses for 2022 were $4,423,644
higher than the prior year, mainly in governmental activities, with increases in employee salaries, pension
benefits, maintenance and utilities, and depreciation representing some of the larger increases.
-9-
Governmental Activities – Governmental activities net position increased by $2,354,713. The following
graphs illustrate the City’s revenues and expenses for its governmental activities:
Expenses and Program Revenues – Governmental Activities
$–
$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
General
Government
Public Safety Public Works Culture and
Recreation
Economic
Development
Interest and
Fiscal Charges
Expenses Program Revenues
Revenue by Source – Governmental Activities
-10-
Business-Type Activities – The net position of business-type activities increased by $2,499,503. This
increase was primarily the result of operating net income in the Sewer Utility, Water Utility, and Storm
Water Funds of $951,263, $812,995, and $435,055, respectively.
Below are the graphs showing the business-type activities revenue and expense comparisons:
Expenses and Program Revenues – Business-Type Activities
$–
$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
$6,000,000
$6,500,000
Sewer Utility Water Utility Golf Course Ice Arena Storm Water Street
Lighting
Expenses Program Revenues
Revenue by Source – Business-Type Activities
-11-
FINANCIAL ANALYSIS OF THE CITY’S FUNDS
Governmental Funds
The focus of the City’s governmental funds is to provide information on near-term inflows, outflows, and
balances of spendable resources. Such information is useful in assessing the City’s financing
requirements. In particular, unassigned fund balance may serve as a useful measure of a government’s net
resources available for spending at the end of the fiscal year.
As of the end of the current fiscal year, the City’s governmental funds had combined ending fund
balances of $31,403,877, an increase of $1,349,091 in comparison with the prior year. Approximately
18.3 percent of this total amount, $5,750,212, constitutes unassigned fund balance, which is available for
spending at the City’s discretion. The remainder of fund balance is either not available for new spending,
or available for new spending, but limited in use, because it is either 1) nons pendable ($12,957),
2) restricted ($10,602,043), 3) committed ($4,724,303), or 4) assigned ($10,314,362).
General Fund – The fund balance of the General Fund decreased by $925,671 to $7,748,072 at
December 31, 2022. Unassigned fund balance represents 43.8 percent of total 2022 expenditures and
other financing uses. The decrease in fund balance was mainly due to transferring out $1,142,382 of fund
balance accumulated in prior years to finance capital improvements. Fund balance was also influenced by
the negative fair value adjustments recognized on the City’s investment portfolio, and higher than
anticipated street maintenance and snow removal costs.
Economic Development Authority – Fund balance decreased by $121,351 in 2022, due to economic
development expenditures exceeding revenues in the current year. The year-end fund balance of
$4,333,830 is committed for economic development projects.
HRA Construction – This fund accounts for capital improvement activity within the City’s tax
increment financing (TIF) districts, less resources accumulated elsewhere for TIF-related long-term
obligations. Fund balance increased by $673,709, which is primarily result of increased tax increment
revenues from improvements.
Street Infrastructure – This fund accounts for capital outlay expenditures related to street infrastructure.
Fund balance increased $214,434, ending the year at $1,370,801. The increase was a result of revenues
exceeding current year project costs and transfers out.
Park Infrastructure – This fund accounts for capital outlay expenditures related to park improvements.
Fund balance increased $91,649, ending the year at $1,604,089. The increase was a result of revenues
exceeding current year project costs and transfers out.
HRA Bonds – The increase in fund balance of $72,764 is primarily related to tax increment revenues
exceeding debt service requirements and other expenditures in the fund. The year-end fund balance deficit
of $1,905,269 is expected to be eliminated through future tax increment revenues.
Proprietary Funds – The City’s proprietary funds provide the same information for the business-type
activities found in the government-wide financial statements, but in more detail.
The City’s enterprise funds had a total net position of $31,949,744 at year-end, of which $7,913,393 was
unrestricted. The total net position of these funds improved by $2,389,438 during 2022. The primary
factors concerning the finances of these funds have already been addressed in the discussion of the City’s
business-type activities.
-12-
General Fund Budgetary Highlights
The City’s General Fund budget was not amended during the year. Actual revenues were under budget by
$141,223 and expenditures were over budget by $154,209.
Revenue line items with significant budget variances include the following:
• Intergovernmental revenue was over budget by $105,199, due to highway maintenance state aid
and other small grants exceeding the City’s conservative budget.
• Investment earnings (charges) were $311,964 under budget, due to market conditions and the
resulting adjustments to the fair values of the City’s investments. The City typically holds
investments to maturity, so these unrealized losses are expected to ultimately be recovered.
Expenditure line items with significant budget variances include the following:
• General government expenditures were over budget by $94,099, mainly in higher than anticipated
City Hall maintenance, election, and legal costs.
• Public safety expenditures were under budget by $252,804, mostly in personnel services for the
police department, due to vacant positions.
• Public works expenditures were over budget by $271,808, primarily in contracted street
maintenance and snow removal costs.
The City Council approved unbudgeted transfers of $500,000 into the General Fund in 2022 to provide
funding for an Emerald Ash Borer abatement program. The City Council also approved $1,142,382 of
unbudgeted transfers out of fund balance accumulated in the prior year to internally finance capital
improvements.
-13-
CAPITAL ASSETS AND LONG-TERM LIABILITIES
Capital Assets – The City’s investment in capital assets (net of accumulated depreciation/amortization)
for its governmental and business-type activities as of December 31, 2022 was $104,850,881, an increase
of $534,093 from the prior year. The City’s capital assets for the last two years are as follows:
2022 2021 2022 2021 2022 2021
Land 994,268$ 994,268$ 485,042$ 485,042$ 1,479,310$ 1,479,310$
Construction in progress 5,114,079 23,726,228 910,625 1,598,507 6,024,704 25,324,735
Buildings and structures 25,408,669 25,408,669 10,797,364 10,797,364 36,206,033 36,206,033
Vehicles and equipment 11,527,771 11,383,148 3,302,582 3,065,892 14,830,353 14,449,040
Improvements other than buildings 68,765,224 47,294,718 31,201,746 28,992,200 99,966,970 76,286,918
Leased vehicles and equipment 328,079 – 14,300 – 342,379 –
Less accumulated
depreciation/amortization (37,599,482) (34,095,621) (16,399,386) (15,333,627) (53,998,868) (49,429,248)
Net total 74,538,608$ 74,711,410$ 30,312,273$ 29,605,378$ 104,850,881$ 104,316,788$
Governmental Activities Business-Type Activities Total
The City completed a number of large projects in 2022, including a new pool and waterpark facility, and
various street improvements. Projects that remain in progress at the current year -end include 2022 street
infrastructure improvements and an addition to the City’s public works facility. Additional details of the
City’s capital asset activity for the year can be found in Note 6 of the notes to basic financial statements.
Long-Term Liabilities – The City’s long-term liabilities for the last two years are as follows:
2022 2021 2022 2021 2022 2021
G.O. bonds 34,618,361$ 36,866,522$ 4,409,426$ 4,897,991$ 39,027,787$ 41,764,513$
G.O. tax increment bonds 4,809,530 5,354,862 1,112,308 1,210,406 5,921,838 6,565,268
G.O. revenue bonds and notes – – 747,679 889,935 747,679 889,935
Leases payable 267,315 112,376 6,509 – 273,824 112,376
Compensated absences 863,013 875,089 – – 863,013 875,089
Net pension liability 15,666,564 4,051,787 1,126,701 670,982 16,793,265 4,722,769
OPEB liability 700,562 799,276 113,357 104,259 813,919 903,535
Total 56,925,345$ 48,059,912$ 7,515,980$ 7,773,573$ 64,441,325$ 55,833,485$
TotalGovernmental Activities Business-Type Activities
The City’s total general obligation bonded debt outstanding was $45,697,304 at year -end, which
decreased $3,522,412 in 2022, due to scheduled debt service payments and no new bond issues. The debt
service funds account for the accumulation of resources to finance the City’s governmental activity
general obligation debt. The revenue sources for these funds include annual tax levies, tax increments,
franchise taxes, and special assessments. At year-end, there was $3,323,035 of fund balance restricted for
debt service in the governmental funds. The G.O. revenue bonds and notes will be paid from the
designated business activity from Ice Arena, Sewer Utility, Water Utility, and Storm Water Funds.
After the implementation of GASB Statement No. 87, the City is reporting leases payable for various
vehicles and equipment of $273,824 at year-end.
The City maintained an “AA” rating on its debt from Standard & Poor’s. Additional details of long-term
debt activity for the year can be found in Note 7 of the notes to basic financial statements.
The City’s long-term liabilities also include various employee benefits, such as compensated absences,
pensions, and other post-employment benefits. These liabilities are primarily paid from the City’s General
Fund and proprietary funds. Additional information related to these employee benefit liabilities can be
found in Notes 9 and 11 of the notes to basic financial statements.
-14-
ECONOMIC FACTORS AND NEXT YEAR’S BUDGETS AND RATES
Economic factors affect the preparation of annual budgets. The following factors were considered in
preparing the 2023 budget:
• User charges have been increased to account for various utility improvements scheduled for 2023
and beyond.
• The tax levy increased by 4.51 percent for 2023.
• Management provided a long-term plan to City Council in November that highlighted the tax
effect of major capital and operating decisions. This will be an important document when
preparing future budgets.
REQUESTS FOR INFORMATION
This Annual Comprehensive Financial Report is designed to provide a general overview of the City’s
finances for all those with an interest in the City’s finances. Questions concerning any of the information
provided in this report or requests for additional financial information should be addressed to the
Department of Finance, City of New Hope, 4401 Xylon Avenue North, New Hope, Minnesota 55428.
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GOVERNMENT-WIDE FINANCIAL STATEMENTS
CITY OF NEW HOPE, MINNESOTA
FOR THE YEAR ENDED
DECEMBER 31, 2022
THIS PAGE INTENTIONALLY LEFT BLANK
Governmental Business-Type
Activities Activities Total
Assets
Cash and temporary investments 40,616,126$ 8,696,734$ 49,312,860$
Receivables
Taxes 291,248 – 291,248
Accrued interest 42,585 – 42,585
Accounts 293,188 1,527,096 1,820,284
Loans 302,211 – 302,211
Leases 3,685,831 – 3,685,831
Special assessments 427,404 186,008 613,412
Internal balances 1,047,508 (1,047,508) –
Due from other governments 208,776 45,795 254,571
Inventories 70,180 56,801 126,981
Prepaid items 12,957 – 12,957
Investment in joint ventures 874,330 168,509 1,042,839
Land held for resale 546,975 – 546,975
Capital assets
Not depreciated/amortized 6,108,347 1,395,667 7,504,014
Depreciated/amortized, net 68,430,261 28,916,606 97,346,867
Total assets 122,957,927 39,945,708 162,903,635
Deferred outflows of resources
Deferred pension resources 9,447,454 339,118 9,786,572
Liabilities
Accrued salaries payable 518,582 64,152 582,734
Accounts and contracts payable 805,952 286,220 1,092,172
Due to other governments 48,268 785,924 834,192
Accrued interest payable 546,120 51,410 597,530
Deposits payable 15,445 2,206 17,651
Unearned revenue 13,800 – 13,800
Noncurrent liabilities
Due within one year 2,918,315 680,734 3,599,049
Due in more than one year 37,639,904 5,595,188 43,235,092
Net pension liability – due in more than one year 15,666,564 1,126,701 16,793,265
OPEB liability – due in more than one year 700,562 113,357 813,919
Total liabilities 58,873,512 8,705,892 67,579,404
Deferred inflows of resources
Deferred pension resources 504,019 17,185 521,204
Lease revenue for subsequent years 3,604,466 – 3,604,466
Resources received in advance 57,402 – 57,402
Total deferred inflows of resources 4,165,887 17,185 4,183,072
Net position
Net investment in capital assets 37,045,401 24,036,351 61,081,752
Restricted for
Economic development 6,628,845 – 6,628,845
Debt service 2,776,915 – 2,776,915
Public safety police expenses 128,930 – 128,930
Ice arena 5,236 – 5,236
Unrestricted 22,780,655 7,525,398 30,306,053
Total net position 69,365,982$ 31,561,749$ 100,927,731$
December 31, 2022
CITY OF NEW HOPE
Statement of Net Position
See notes to basic financial statements -15-
Operating Capital
Charges for Grants and Grants and
Expenses Services Contributions Contributions
Governmental activities
General government 2,991,397$ 210,258$ 365,087$ –$
Public safety 9,224,111 1,064,683 519,327 –
Public works 4,716,237 254,108 304,014 799,438
Culture and recreation 3,845,915 1,205,491 46,813 51,795
Economic development 1,374,777 – – –
Interest on long-term debt 1,440,518 – – –
Total governmental activities 23,592,955 2,734,540 1,235,241 851,233
Business-type activities
Sewer utility 3,057,860 4,026,715 1,359 –
Water utility 4,732,554 5,850,384 49,924 13,756
Golf course 386,668 453,222 264 –
Ice arena 1,176,353 919,818 11,959 –
Storm water 958,733 1,378,944 44,629 –
Street lighting 157,248 178,120 – –
Total business-type activities 10,469,416 12,807,203 108,135 13,756
Total 34,062,371$ 15,541,743$ 1,343,376$ 864,989$
General revenues
Taxes
Property taxes
Tax increments
Franchise taxes
Grants and contributions not restricted
to specific programs
Unrestricted investment earnings (charges)
Gain on sale of capital assets
Transfers – internal activities
Total general revenues and transfers
Change in net position
Net position, January 1
Net position, December 31
Functions/Programs
Program Revenues
CITY OF NEW HOPE
Statement of Activities
Year Ended December 31, 2022
See notes to basic financial statements -16-
Governmental Business-Type
Activities Activities Total
(2,416,052)$ –$ (2,416,052)$
(7,640,101) – (7,640,101)
(3,358,677) – (3,358,677)
(2,541,816) – (2,541,816)
(1,374,777) – (1,374,777)
(1,440,518) – (1,440,518)
(18,771,941) – (18,771,941)
– 970,214 970,214
– 1,181,510 1,181,510
– 66,818 66,818
– (244,576) (244,576)
– 464,840 464,840
– 20,872 20,872
– 2,459,678 2,459,678
(18,771,941) 2,459,678 (16,312,263)
18,203,975 – 18,203,975
2,219,677 – 2,219,677
959,744 – 959,744
905,573 – 905,573
(838,869) (292,859) (1,131,728)
9,238 – 9,238
(332,684) 332,684 –
21,126,654 39,825 21,166,479
2,354,713 2,499,503 4,854,216
67,011,269 29,062,246 96,073,515
69,365,982$ 31,561,749$ 100,927,731$
Net (Expenses) Revenues
and Changes in Net Position
-17-
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FUND FINANCIAL STATEMENTS
CITY OF NEW HOPE, MINNESOTA
FOR THE YEAR ENDED
DECEMBER 31, 2022
9001 9015/9501 9213-9228 9203
Economic
Development HRA Street
General Authority Construction Infrastructure
Assets
Cash and temporary investments 7,619,935$ 1,975,718$ 5,784,876$ 1,845,962$
Receivables
Taxes 284,481 – 6,700 –
Accrued interest 17,299 – – –
Accounts 252,582 3,617 – –
Loans – 234,500 – –
Leases – – – –
Special assessments 48,721 – – 328,823
Due from other governments 154,932 – – 53,844
Prepaid items 12,957 – – –
Due from other funds 9,513 – – –
Advances to other funds – 1,590,242 2,065,497 –
Land held for resale – 546,975 – –
Total assets 8,400,420$ 4,351,052$ 7,857,073$ 2,228,629$
Liabilities
Accrued salaries payable 334,839$ 10,676$ –$ –$
Accounts and contracts payable 146,717 4,078 – 171,603
Due to other governments 26,210 599 – –
Deposits payable 6,317 1,869 – –
Due to other funds – – – 75,000
Advances from other funds – – 1,228,228 225,000
Unearned revenue – – – –
Total liabilities 514,083 17,222 1,228,228 471,603
Deferred inflows of resources
Unavailable revenue – taxes 90,387 – – –
Unavailable revenue – special assessments 47,878 – – 328,823
Lease revenue for subsequent years – – – –
Resources received in advance – – – 57,402
Total deferred inflows of resources 138,265 – – 386,225
Fund balances (deficit)
Nonspendable 12,957 – – –
Restricted – – 6,628,845 –
Committed 79,634 4,333,830 – –
Assigned – – – 1,370,801
Unassigned 7,655,481 – – –
Total fund balances (deficit)7,748,072 4,333,830 6,628,845 1,370,801
Total liabilities, deferred inflows
of resources, and fund balances 8,400,420$ 4,351,052$ 7,857,073$ 2,228,629$
CITY OF NEW HOPE
Balance Sheet
Governmental Funds
December 31, 2022
See notes to basic financial statements -18-
9233 9117-9121
Other Total
Park Governmental Governmental
Infrastructure HRA Bonds Funds Funds
1,534,003$ 522,175$ 10,865,953$ 30,148,622$
– 67 – 291,248
25,286 – – 42,585
– – 26,478 282,677
– – 67,711 302,211
3,685,831 – – 3,685,831
– – 49,860 427,404
– – – 208,776
– – – 12,957
– – 75,000 84,513
– – 875,000 4,530,739
– – – 546,975
5,245,120$ 522,242$ 11,960,002$ 40,564,538$
–$ –$ –$ 345,515$
22,765 – 272,436 617,599
– – 20,788 47,597
– – – 8,186
– – – 75,000
– 2,427,511 – 3,880,739
13,800 – – 13,800
36,565 2,427,511 293,224 4,988,436
– – – 90,387
– – 43,269 419,970
3,604,466 – – 3,604,466
– – – 57,402
3,604,466 – 43,269 4,172,225
– – – 12,957
– – 3,973,198 10,602,043
– – 310,839 4,724,303
1,604,089 – 7,339,472 10,314,362
– (1,905,269) – 5,750,212
1,604,089 (1,905,269) 11,623,509 31,403,877
5,245,120$ 522,242$ 11,960,002$ 40,564,538$
-19-
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Total fund balances – governmental funds 31,403,877$
Amounts reported for the governmental activities in the Statement of Net Position are different because:
Cost of capital assets 97,806,151
Less accumulated depreciation/amortization (26,836,737)
Bonds payable (37,155,868)
Plus unamortized bond premiums (2,272,023)
Net pension liability (15,356,454)
Internal service fund net position included in governmental activities 11,695,647
Internal balances for internal services used by business-type activities 387,995
Taxes 90,387
Special assessments 419,970
Deferred outflows of pension resources 9,354,116
Deferred inflows of pension resources (499,289)
(546,120)
874,330
Total net position – governmental activities 69,365,982$
CITY OF NEW HOPE
Reconciliation of the Balance Sheet
to the Statement of Net Position
Governmental Funds
December 31, 2022
Capital assets used in governmental activities are not financial resources and,therefore,are not
reported as assets in governmental funds.
Internal service funds are used by management to charge certain costs of services to individual
funds. The assets and liabilities are included in the Statement of Net Position.
The City’s investment in a joint venture is not a current financial resource and,therefore,is not
reported as an asset in the governmental funds, but is included in the Statement of Net Position.
Governmental funds do not report long-term amounts related to pensions.
Governmental funds do not report a liability for accrued interest until due and payable.
Some receivables are not available soon enough to pay for the current period’s expenditures and,
therefore, are reported as unavailable revenue in the funds.
Noncurrent liabilities, including bonds payable, are not due and payable in the current period and,
therefore, are not reported as liabilities in the funds. Noncurrent liabilities at year-end consist of:
See notes to basic financial statements -20-
9001 9015/9501 9213-9228 9203
Economic
Development HRA Street
General Authority Construction Infrastructure
Revenues
Taxes
Property taxes 11,391,654$ 574,905$ –$ 1,617,735$
Tax increments – – 1,523,492 –
Franchise taxes 519,744 – – 440,000
Licenses and permits 346,871 – – –
Intergovernmental 1,629,741 – – 771,119
Charges for services 1,840,627 – – –
Fines and forfeitures 187,219 – – –
Special assessments 29,868 1,636 – 95,952
Investment earnings (charges)(261,964) (7,822) 173,975 (85,738)
Miscellaneous 52,168 – – –
Total revenues 15,735,928 568,719 1,697,467 2,839,068
Expenditures
Current
General government 2,422,919 – – –
Public safety 8,915,107 – – –
Public works 1,870,737 – – 72,050
Culture and recreation 3,015,281 – – –
Economic development – 497,108 794,184 –
Capital outlay
General government 766 – – –
Public safety 108,592 – – –
Public works – – – 2,143,278
Culture and recreation – – – –
Economic development – – 73,298 –
Debt service
Principal – – – –
Interest and fiscal charges – – 156,276 9,306
Total expenditures 16,333,402 497,108 1,023,758 2,224,634
Excess (deficiency) of
revenues over expenditures (597,474) 71,611 673,709 614,434
Other financing sources (uses)
Sale of capital assets 12,145 – – –
Transfers in 802,040 100,000 – –
Transfers (out)(1,142,382) (50,260) – (400,000)
Total other financing sources (uses)(328,197) 49,740 – (400,000)
Net change in fund balances (925,671) 121,351 673,709 214,434
Fund balances (deficit), January 1 8,673,743 4,212,479 5,955,136 1,156,367
Fund balances (deficit), December 31 7,748,072$ 4,333,830$ 6,628,845$ 1,370,801$
CITY OF NEW HOPE
For the Year Ended December 31, 2022
Governmental Funds
Statement of Revenues, Expenditures and Changes in Fund Balances
See notes to basic financial statements -21-
9233 9117-9121
Other Total
Park Governmental Governmental
Infrastructure HRA Bonds Funds Funds
904,938$ –$ 3,744,984$ 18,234,216$
– 696,185 – 2,219,677
– – – 959,744
– – – 346,871
48,795 – 1,142,382 3,592,037
159,428 – 253,634 2,253,689
– – – 187,219
– – 7,971 135,427
(60,403) – (283,738) (525,690)
3,579 – 526 56,273
1,056,337 696,185 4,865,759 27,459,463
– – – 2,422,919
– – – 8,915,107
– – 250,420 2,193,207
– – – 3,015,281
– – 7,000 1,298,292
– – 32,202 32,968
– – – 108,592
– – 779,610 2,922,888
364,688 – 74,058 438,746
– – – 73,298
– 445,403 2,196,124 2,641,527
– 178,018 1,280,716 1,624,316
364,688 623,421 4,620,130 25,687,141
691,649 72,764 245,629 1,772,322
– – – 12,145
– – 1,596,890 2,498,930
(600,000) – (741,664) (2,934,306)
(600,000) – 855,226 (423,231)
91,649 72,764 1,100,855 1,349,091
1,512,440 (1,978,033) 10,522,654 30,054,786
1,604,089$ (1,905,269)$ 11,623,509$ 31,403,877$
-22-
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Net change in fund balances – governmental funds 1,349,091$
Amounts reported for governmental activities in the Statement of Activities are different because:
Capital outlays 2,865,916
Depreciation/amortization expense (3,343,424)
Change in investment in joint venture (100,296)
Principal repayments 2,641,527
Amortization of bond premium 151,966
44,245
Property taxes (30,241)
Special assessments (72,108)
Long-term receivables (1,142,382)
Pension expense (596,120)
Direct aid contributions 139,303
Change in net position of the internal service funds 557,301
Less the change in internal balances for internal services used by business-type activities (110,065)
Change in net position – governmental activities 2,354,713$
CITY OF NEW HOPE
Internal service funds are used by management to charge the costs for equipment,information
systems,equipment replacement,employee benefits,and major losses incurred by individual
funds.The activities of internal service funds is reported in the government-wide financial
statements.
Capital outlays are reported in governmental funds as expenditures.However,in the Statement of
Activities,the cost of those assets is allocated over the estimated useful lives as
depreciation/amortization expense.
Reconciliation of the Statement of Revenues, Expenditures and
Changes in Fund Balances to the Statement of Activities
Governmental Funds
For the Year Ended December 31, 2022
The City’s investment in a joint venture is not a current financial resource and,therefore,is not
reported as an asset in the governmental funds, but is included in the Statement of Net Position.
Long-term pension activity is not reported in governmental funds.
Interest on long-term debt in the Statement of Activities differs from the amount reported in the
governmental funds because interest is recognized as an expenditure in the funds when it is due,
and thus requires the use of current financial resources.In the Statement of Activities,however,
interest expense is recognized as the interest accrues, regardless of when it is due.
The issuance of long-term debt provides current financial resources to governmental funds,while
the repayment of principal of long-term debt consumes the current financial resources of
governmental funds.Neither transaction,however,has any effect on net position.Also,
governmental funds report the effect of premiums,discounts,and similar items when debt is first
issued,whereas these amounts are deferred and amortized in the Statement of Activities.The
amounts below are the effects of these differences in the treatment of long-term debt and related
items.
Certain revenues are recognized as soon as they are earned.Under the modified accrual basis of
accounting,certain revenues cannot be recognized until they are available to liquidate liabilities
of the current period.
See notes to basic financial statements -23-
Original and Actual Over (Under)
Final Budget Amounts Budget
Revenues
Taxes
Property taxes 11,393,354$ 11,391,654$ (1,700)$
Franchise taxes 535,000 519,744 (15,256)
Licenses and permits 329,570 346,871 17,301
Intergovernmental 1,524,542 1,629,741 105,199
Charges for services 1,790,685 1,840,627 49,942
Fines and forfeitures 200,000 187,219 (12,781)
Special assessments 40,000 29,868 (10,132)
Investment earnings (charges)50,000 (261,964) (311,964)
Miscellaneous 14,000 52,168 38,168
Total revenues 15,877,151 15,735,928 (141,223)
Expenditures
Current
General government 2,328,586 2,422,919 94,333
Public safety 9,200,103 8,915,107 (284,996)
Public works 1,598,929 1,870,737 271,808
Culture and recreation 2,974,175 3,015,281 41,106
Capital outlay
General government 1,000 766 (234)
Public safety 76,400 108,592 32,192
Total expenditures 16,179,193 16,333,402 154,209
Excess (deficiency) of
revenues over expenditures (302,042) (597,474) (295,432)
Other financing sources (uses)
Sale of capital assets – 12,145 12,145
Transfers in 302,042 802,040 499,998
Transfers (out)– (1,142,382) (1,142,382)
Total other financing sources (uses)302,042 (328,197) (630,239)
Net change in fund balances – (925,671) (925,671)
Fund balances, January 1 8,673,743 8,673,743 –
Fund balances, December 31 8,673,743$ 7,748,072$ (925,671)$
Statement of Revenues, Expenditures, and Changes in Fund Balances –
CITY OF NEW HOPE
General Fund
Budget and Actual
For the Year Ended December 31, 2022
See notes to basic financial statements -24-
Original and Actual Over (Under)
Final Budget Amounts Budget
Revenues
Taxes
Property taxes 570,000$ 574,905$ 4,905$
Special assessments 1,500 1,636 136
Investment earnings (charges)77,500 (7,822) (85,322)
Total revenues 649,000 568,719 (80,281)
Expenditures
Current
Economic development
Personnel services 210,292 227,496 17,204
Supplies 300 13,659 13,359
Other services and charges 599,966 255,953 (344,013)
Total expenditures 810,558 497,108 (313,450)
Excess (deficiency) of
revenues over expenditures (161,558) 71,611 233,169
Other financing sources (uses)
Transfers in 200,000 100,000 (100,000)
Transfers (out)(37,422) (50,260) (12,838)
Total other financing sources (uses)162,578 49,740 (112,838)
Net change in fund balances 1,020 121,351 120,331
Fund balances, January 1 4,212,479 4,212,479 –
Fund balances, December 31 4,213,499$ 4,333,830$ 120,331$
CITY OF NEW HOPE
Economic Development Authority Fund
Statement of Revenues, Expenditures, and Changes in Fund Balances –
Budget and Actual
For the Year Ended December 31, 2022
See notes to basic financial statements -25-
9300 9301 9302 9303
Sewer Utility Water Utility Golf Course Ice Arena
Assets
Current assets
Cash and temporary investments 2,561,438$ 3,909,250$ 419,237$ –$
Receivables
Accounts 373,001 933,938 (4) 84,157
Special assessments 52,336 117,704 – –
Due from other governments – 907 – 44,888
Inventories – 48,506 8,295 –
Total current assets 2,986,775 5,010,305 427,528 129,045
Noncurrent assets
Investment in joint ventures – 168,509 – –
Capital assets
Land – – 250,625 –
Buildings and structures – – 973,145 9,824,219
Vehicles and equipment 607,475 1,392,767 133,696 1,168,644
Improvements other than buildings 7,625,896 12,712,080 149,870 –
Leased vehicles and equipment – – 14,300 –
Construction in progress 131,842 140,574 – 426,000
Less accumulated depreciation/amortization (3,439,850) (4,832,394) (1,120,306) (4,672,548)
Total capital assets, net 4,925,363 9,413,027 401,330 6,746,315
Total noncurrent assets 4,925,363 9,581,536 401,330 6,746,315
Total assets 7,912,138 14,591,841 828,858 6,875,360
Deferred outflows of resources
Deferred pension resources 93,338 93,491 18,115 80,750
Business-Type Activities – Enterprise Funds
CITY OF NEW HOPE
Statement of Net Position
Proprietary Funds
December 31, 2022
See notes to basic financial statements -26-
Governmental
Activities –
9304 9305 Internal
Storm Water Street Lighting Totals Service Funds
1,644,184$ 162,625$ 8,696,734$ 10,467,504$
128,019 7,985 1,527,096 10,511
13,892 2,076 186,008 –
– – 45,795 –
– – 56,801 70,180
1,786,095 172,686 10,512,434 10,548,195
– – 168,509 –
234,417 – 485,042 85,647
– – 10,797,364 3,158,296
– – 3,302,582 10,759,917
10,324,195 389,705 31,201,746 –
– – 14,300 328,079
212,209 – 910,625 –
(2,275,832) (58,456) (16,399,386) (10,762,745)
8,494,989 331,249 30,312,273 3,569,194
8,494,989 331,249 30,480,782 3,569,194
10,281,084 503,935 40,993,216 14,117,389
53,424 – 339,118 93,338
Business-Type Activities – Enterprise Funds
-27-(continued)
9300 9301 9302 9303
Sewer Utility Water Utility Golf Course Ice Arena
Liabilities
Current liabilities
Accrued salaries payable 12,277$ 24,527$ 2,956$ 18,403$
Accounts and contracts payable 179,041 12,940 17,173 59,029
Due to other governments 373 772,377 – 12,812
Accrued interest payable 7,715 26,151 – 3,887
Due to other funds – – – 9,513
Deposits payable – 2,206 – –
Compensated absences payable, current portion – – – –
Leases payable, current portion – – 6,509 –
Bonds and notes payable, current portion 60,388 253,318 – 260,000
Total current liabilities 259,794 1,091,519 26,638 363,644
Noncurrent liabilities
Advances from other funds – – – 650,000
OPEB payable 31,273 33,287 4,041 23,533
Pension liability 310,111 310,621 60,186 268,286
Compensated absences payable – – – –
Leases payable – – – –
Bonds and notes payable 620,255 2,460,695 – 1,295,000
Unamortized premium 16,686 67,172 – 34,805
Total noncurrent liabilities 978,325 2,871,775 64,227 2,271,624
Total liabilities 1,238,119 3,963,294 90,865 2,635,268
Deferred inflows of resources
Deferred pension resources 4,730 4,738 918 4,092
Net position
Net investment in capital assets 4,228,034 6,631,842 394,821 5,156,510
Unrestricted 2,534,593 4,085,458 360,369 (839,760)
Total net position 6,762,627$ 10,717,300$ 755,190$ 4,316,750$
Total net position – enterprise funds
Adjustment to reflect the consolidation of
internal service funds
Net position – business-type activities
Proprietary Funds
December 31, 2022
Business-Type Activities – Enterprise Funds
CITY OF NEW HOPE
Statement of Net Position (continued)
See notes to basic financial statements -28-
Governmental
Activities –
9304 9305 Internal
Storm Water Street Lighting Totals Service Funds
5,989$ –$ 64,152$ 173,067$
3,310 14,727 286,220 188,353
362 – 785,924 671
13,657 – 51,410 –
– – 9,513 –
– – 2,206 7,259
– – – 86,302
– – 6,509 78,237
100,519 – 674,225 –
123,837 14,727 1,880,159 533,889
– – 650,000 –
21,223 – 113,357 700,562
177,497 – 1,126,701 310,110
– – – 776,711
– – – 189,078
1,064,957 – 5,440,907 –
35,618 – 154,281 –
1,299,295 – 7,485,246 1,976,461
1,423,132 14,727 9,365,405 2,510,350
2,707 – 17,185 4,730
7,293,895 331,249 24,036,351 3,301,879
1,614,774 157,959 7,913,393 8,393,768
8,908,669$ 489,208$ 31,949,744$ 11,695,647$
31,949,744$
(387,995)
31,561,749$
-29-
9300 9301 9302 9303
Sewer Utility Water Utility Golf Course Ice Arena
Operating revenues
Charges for services 4,026,715$ 5,526,619$ 424,160$ 876,769$
Billings to departments – – – –
Intergovernmental – – – 3,158
Other – – – –
Total operating revenues 4,026,715 5,526,619 424,160 879,927
Operating expenses
Cost of goods sold 1,979,907 3,400,330 35,624 –
Personnel services 428,287 431,491 150,474 432,536
Supplies 18,768 87,783 32,928 69,934
Utilities 13,295 1,137 31,150 295,311
Other services and charges 424,450 480,585 93,271 151,609
Depreciation/amortization 210,745 312,298 45,950 226,267
Total operating expenses 3,075,452 4,713,624 389,397 1,175,657
Operating income (loss)951,263 812,995 34,763 (295,730)
Nonoperating revenues (expenses)
Investment earnings (charges)(91,695) (129,398) (14,504) (4)
Miscellaneous revenues 1,359 373,689 29,326 51,850
Intergovernmental – – – –
Gain (loss) on sale of capital assets – – – –
Interest expense (17,514) (60,361) (33) (15,554)
Total nonoperating revenues (expenses)(107,850) 183,930 14,789 36,292
Income (loss) before contributions and transfers 843,413 996,925 49,552 (259,438)
Capital contributions – 13,756 – –
Transfers in – – – 500,000
Transfers (out)(58,368) (60,876) (11,310) (11,310)
Change in net position 785,045 949,805 38,242 229,252
Net position, January 1 5,977,582 9,767,495 716,948 4,087,498
Net position, December 31 6,762,627$ 10,717,300$ 755,190$ 4,316,750$
Change in net position – enterprise funds
Adjustment to reflect the consolidation of internal
service funds activities related to the enterprise funds
Change in net position – business-type activities
Business-Type Activities – Enterprise Funds
CITY OF NEW HOPE
Statement of Revenues, Expenses and
Changes in Net Position
Proprietary Funds
For the Year Ended December 31, 2022
See notes to basic financial statements -30-
Governmental
Activities –
9304 9305 Internal
Storm Water Street Lighting Totals Service Funds
1,378,944$ 178,120$ 12,411,327$ –$
– – – 3,769,781
– – 3,158 –
– – – 230,258
1,378,944 178,120 12,414,485 4,000,039
– – 5,415,861 –
264,580 – 1,707,368 904,041
11,019 – 220,432 328,218
– 125,627 466,520 130,108
417,276 12,181 1,579,372 1,197,026
251,014 19,485 1,065,759 657,538
943,889 157,293 10,455,312 3,216,931
435,055 20,827 1,959,173 783,108
(51,194) (6,064) (292,859) (313,179)
778 – 457,002 –
43,851 – 43,851 –
– – – (2,907)
(30,707) – (124,169) (12,413)
(37,272) (6,064) 83,825 (328,499)
397,783 14,763 2,042,998 454,609
– – 13,756 –
– – 500,000 200,000
(25,452) – (167,316) (97,308)
372,331 14,763 2,389,438 557,301
8,536,338 474,445 29,560,306 11,138,346
8,908,669$ 489,208$ 31,949,744$ 11,695,647$
2,389,438$
service funds activities related to the enterprise funds 110,065
2,499,503$
-31-
9300 9301 9302 9303
Sewer Utility Water Utility Golf Course Ice Arena
Cash flows from operating activities
Receipts from customers and users 4,026,085$ 5,570,919$ 427,087$ 856,116$
Receipts from interfund services provided – – – –
Other operating receipts 1,359 373,689 29,326 51,850
Payments to suppliers (2,472,992) (3,662,670) (186,533) (502,590)
Payments to employees (416,187) (448,958) (149,309) (430,477)
Net cash from operating activities 1,138,265 1,832,980 120,571 (25,101)
Cash flows from noncapital financing activities
Receipts on interfund balances – – – 659,513
Payments on interfund balances – – – (194,063)
Transfers in – – – 500,000
Transfers (out)(58,368) (60,876) (11,310) (11,310)
Net cash from noncapital financing activities (58,368) (60,876) (11,310) 954,140
Cash flows from capital and related financing activities
Acquisition of capital assets (418,877) (585,782) (9,250) (662,690)
Capital contributions – 13,756 – –
Principal paid on long-term debt (59,205) (248,118) (7,791) (245,000)
Interest paid on long-term debt (19,238) (67,393) (33) (21,345)
Net cash from capital and
related financing activities (497,320) (887,537) (17,074) (929,035)
Cash flows from investing activities
Investment earnings received (charged)(91,695) (129,398) (14,504) (4)
Net increase in cash
and cash equivalents 490,882 755,169 77,683 –
Cash and cash equivalents, January 1 2,070,556 3,154,081 341,554 –
Cash and cash equivalents, December 31 2,561,438$ 3,909,250$ 419,237$ –$
Business-Type Activities – Enterprise Funds
For the Year Ended December 31, 2022
Proprietary Funds
Statement of Cash Flows
CITY OF NEW HOPE
See notes to basic financial statements -32-
Governmental
Activities –
9304 9305 Internal
Storm Water Street Lighting Totals Service Funds
1,432,399$ 177,778$ 12,490,384$ –$
– – – 3,769,063
44,629 – 500,853 230,258
(476,243) (138,051) (7,439,079) (1,544,376)
(240,588) – (1,685,519) (955,817)
760,197 39,727 3,866,639 1,499,128
– – 659,513 –
– – (194,063) –
– – 500,000 200,000
(25,452) – (167,316) (97,308)
(25,452) – 798,134 102,692
(81,755) – (1,758,354) (749,448)
– – 13,756 –
(163,150) – (723,264) (60,764)
(35,060) – (143,069) (12,413)
(279,965) – (2,610,931) (822,625)
(51,194) (6,064) (292,859) (313,179)
403,586 33,663 1,760,983 466,016
1,240,598 128,962 6,935,751 10,001,488
1,644,184$ 162,625$ 8,696,734$ 10,467,504$
Business-Type Activities – Enterprise Funds
-33-(continued)
9300 9301 9302 9303
Sewer Utility Water Utility Golf Course Ice Arena
Reconciliation of operating income (loss)
to net cash from operating activities
Operating income (loss)951,263$ 812,995$ 34,763$ (295,730)$
Adjustments to reconcile operating income (loss)
to net cash from operating activities
Depreciation 210,745 312,298 45,950 226,267
Other income related to operations 1,359 373,689 29,326 51,850
(Increase) decrease in assets
Receivables
Accounts 1,799 (24,873) 2,927 (63,274)
Special assessments (2,429) (5,281) – –
Due from other governments – 74,454 – 39,463
Inventories – (19,995) (1,409) –
(Increase) decrease in deferred outflows of resources
Deferred pension resources 48,072 40,243 8,348 38,440
Increase (decrease) in liabilities
Accounts and contracts payable (36,658) (72,249) 8,013 14,184
Accrued salaries payable (1,476) 2,341 573 1,576
Due to other governments 86 399,409 (164) 80
Deposits payable – – – –
Compensated absences payable – – – –
OPEB payable 20,690 (25,470) 387 1,545
Pension liability 117,300 128,277 24,103 105,774
Increase (decrease) in deferred inflows of resources
Deferred pension resources (172,486) (162,858) (32,246) (145,276)
Net cash from operating activities 1,138,265$ 1,832,980$ 120,571$ (25,101)$
Schedule of noncash capital and related financing activities
Amortization of bond premium 1,121$ 4,696$ –$ 5,178$
Capital assets acquired through leases payable –$ –$ 14,300$ –$
Net book value of capital assets disposals –$ –$ –$ –$
Business-Type Activities – Enterprise Funds
CITY OF NEW HOPE
Statement of Cash Flows (continued)
Proprietary Funds
For the Year Ended December 31, 2022
See notes to basic financial statements -34-
Governmental
Activities –
9304 9305 Internal
Storm Water Street Lighting Totals Service Funds
435,055$ 20,827$ 1,959,173$ 783,108$
251,014 19,485 1,065,759 657,538
44,629 – 500,853 –
6,790 (335) (76,966) (718)
(38) (7) (7,755) –
46,703 – 160,620 –
– – (21,404) (5,978)
17,887 – 152,990 23,831
(48,031) (243) (134,984) 116,956
555 – 3,569 19,677
83 – 399,494 (2)
– – – 7,259
– – – (12,076)
11,946 – 9,098 (98,714)
80,265 – 455,719 150,353
(86,661) – (599,527) (142,106)
760,197$ 39,727$ 3,866,639$ 1,499,128$
2,451$ –$ 13,446$ –$
–$ –$ 14,300$ 231,093$
–$ –$ –$ 2,907$
Business-Type Activities – Enterprise Funds
-35-
THIS PAGE INTENTIONALLY LEFT BLANK
CITY OF NEW HOPE
Notes to Basic Financial Statements
December 31, 2022
-36-
NOTE 1 – SIGNIFICANT ACCOUNTING POLICIES
A. Organization
The City of New Hope, Minnesota (the City) operates under “Optional Plan B” as defined in Minnesota
Statutes, Chapter 412. Under this plan, the government of the City is run by a council composed of an
elected mayor and four councilmembers. The City Council exercises legislative authority and determines
all matters of policy. The city manager, who is appointed by the City Council, is responsible for the proper
administration of all affairs relating to the City.
The accounting policies of the City conform to accounting principles generally accepted in the United States
of America (GAAP), as applicable to governmental units.
B. Reporting Entity
As required by GAAP, these financial statements include the City (the primary government) and its
component units. Component units are legally separate entities for which the primary government is
financially accountable, or for which the exclusion of the component unit would render the financial
statements of the primary government misleading. The criteria used to determine if the primary government
is financially accountable for a component unit includes whether or not the primary government appoints
the voting majority of the potential component unit’s board, is able to impose its will on the potential
component unit, is in a relationship of financial benefit or burden with the potential component unit, or is
fiscally depended upon by the potential component unit.
As a result of applying these criteria, certain organizations have been included or disclosed in this report as
follows:
1. Blended Component Unit – The New Hope Economic Development Authority (EDA) and
Housing and Redevelopment Authority (HRA) are fiscally dependent upon the City, and were
developed to control and operate the housing and redevelopment and tax increment districts within
the City. Since the City Council makes up the EDA and HRA boards, and funding for EDA and
HRA activities are provided by the City, both entities are considered blended component units of
the City, and are reported as special revenue, debt service, and capital projects funds.
2. Joint Ventures and Jointly Controlled Organization – The City participates in various joint
ventures and jointly controlled organizations, which are described later in these notes.
C. Government-Wide Financial Statements
The government-wide financial statements (Statement of Net Position and Statement of Activities) display
information about the reporting government as a whole. These statements include all of the financial
activities of the City. Governmental activities, which are normally supported by taxes and
intergovernmental revenues, are reported separately from business-type activities, which significantly rely
upon sales, fees, and charges for support.
-37-
NOTE 1 – SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
The Statement of Activities demonstrates the degree to which the direct expenses o f a given function or
segment are offset by program revenues. Direct expenses are those that are clearly identifiable with a
specific function or segment. Program revenues include: 1) charges to customers or applicants who
purchase, use, or directly benefit from goods, services, or privileges provided by a given function or
segment; 2) operating grants and contributions; and 3) capital grants and contributions, including special
assessments that are restricted to meeting the operational or capital requirements of a particular function or
segment. Taxes and other internally directed revenues are reported as general revenues.
The government-wide financial statements are reported using the economic resources measurement focus
and the accrual basis of accounting. Revenues are recorded when earned and expenses are recorded when
a liability is incurred, regardless of the timing of related cash flows. Property taxes and special assessments
are recognized as revenues in the fiscal year for which they are certified for levy. Grants and similar items
are recognized when all eligibility requirements imposed by the provider have been met.
As a general rule, the effect of interfund activity has been eliminated from the government-wide financial
statements. However, charges between the City’s enterprise funds and other functions are not eliminated,
as that would distort the direct costs and program revenues reported in those functions. Depreciation and
amortization expense are included in the direct expenses of each function. Interest on long-term debt is
considered an indirect expense and is reported separately on the Statement of Activities.
D. Fund Financial Statement Presentation
Separate fund financial statements are provided for governmental and proprietary funds. Major individual
governmental and enterprise funds are reported as separate columns in the fund financial statements.
Aggregated information for the remaining nonmajor governmental funds is reported in a single column in
the fund financial statements.
Governmental fund financial statements are reported using the current financial resources measurement
focus and the modified accrual basis of accounting. Under this basis of accounting, transactions are recorded
in the following manner:
1. Revenue Recognition – Revenue is recognized when it becomes measurable and available.
“Measurable” means the amount of the transaction can be determined and “available” means
collectible within the current period or soon enough thereafter to be used to pay liabilities of the
current period. For this purpose, the City considers revenues to be available if they are coll ected
within 60 days after year-end. Only the portion of special assessments receivable due within the
current fiscal period is considered susceptible to accrual as revenue of the current period. Grants
and similar items are recognized when all eligibility requirements imposed by the provider have
been met. Proceeds of long-term debt and acquisitions under leases are reported as other financing
sources.
Major revenue that is susceptible to accrual includes taxes, special assessments, intergovernmental
revenue, charges for services, and interest earned on investments. Major revenue that is not
susceptible to accrual includes licenses and permits, fees, and miscellaneous revenue. Such revenue
is recorded only when received because it is not measurable until collected.
2. Recording of Expenditures – Expenditures are generally recorded when a liability is incurred,
except for principal and interest on long-term debt and other long-term liabilities, which are
recognized as expenditures to the extent they have matured. Capital asset acquisitions are reported
as capital outlay expenditures in the governmental funds.
-38-
NOTE 1 – SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
Proprietary fund financial statements are reported using the economic resources measurement focus and
accrual basis of accounting, similar to the government-wide financial statements. Proprietary funds
distinguish operating revenues and expenses from nonoperating items. Operating revenues and expenses
generally result from providing services and producing and delivering goods in connection with a
proprietary fund’s principal ongoing operations. The principal operating revenues of the City’s enterprise
funds and internal service funds are charges to customers for sales and services. The operating expenses for
the enterprise funds and internal service funds include the cost of sales and services, administrative
expenses, and depreciation/amortization on capital assets. All revenues and expenses that do not meet this
definition are reported as nonoperating revenues and expenses.
Aggregated information for the internal service funds is reported in a single column in the proprietary fund
financial statements. Because the principal user of the internal services is the City’s governmental activities,
the financial statements of the internal service funds are consolidated into the governmental column when
presented in the government-wide financial statements. The cost of these services is reported in the
appropriate functional activity.
Description of Funds
The City reports the following major governmental funds:
General Fund – This is the general operating fund of the City. It is used to account for all financial
resources except those required to be accounted for in another fund.
Economic Development Authority Special Revenue Fund – This fund accounts for the activities of the
EDA, which controls and operates the housing and redevelopment projects and tax increment districts in
the City. Its activities are funded through property tax levies and federal and state aids and grants.
HRA Construction Capital Projects Fund – This fund is used to account for redevelopment costs for tax
increment districts, which are primarily funded by tax increment bonds and tax increment revenues.
Street Infrastructure Capital Projects Fund – This fund is used to account for various street projects
within the City.
Park Infrastructure Capital Projects Fund – This fund is used to account for various park projects within
the City.
HRA Bonds Debt Service Fund – This fund is used to account for revenue from tax increments and interest
income to pay for the principal and interest on the City’s tax increment bond issues.
The City reports the following major enterprise funds:
Sewer Utility Fund – This fund accounts for the provisions of sewer services to residents of the City. All
activities necessary to provide such services are accounted for in this fund, including administration,
operations, maintenance, and billing and collections.
Water Utility Fund – This fund is used to account for the provisions of water services to residents of the
City. All activities necessary to provide such services are accounted for in this fund, including
administration, operations, maintenance, and billing and collections.
Golf Course Fund – This fund is used to account for the operations of the City’s public golf course.
Ice Arena Fund – This fund is used to account for the operation of the City’s indoor ice arena.
Storm Water Fund – This fund is used to account for the operation and mai ntenance of the City’s storm
water system.
-39-
NOTE 1 – SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
Street Lighting Fund – This fund is used to account for the operation of the City’s streetlight system.
The City also reports the following fund type:
Internal Service Funds – These funds are used to account for the City’s vehicle and equipment rental,
employee leave benefits, insurance, and information technology operations. Internal service funds operate
in a manner similar to enterprise funds; however, they provide services primarily to other departments
within the City.
E. Budgets and Budgetary Accounting
Each fall, following a truth in taxation public hearing, the City Council adopts an operating budget for the
following fiscal year beginning January 1. The City legally adopts budgets for the General Fund and certain
special revenue funds (Economic Development Authority and Solid Waste Management Funds), on a
modified accrual basis of accounting. The legal level of budgetary control is at the fund level. The city
manager may transfer appropriations within funds, or departments within funds, but needs City Council
approval to adjust the total budget of a fund. Appropriations lapse at year-end; however, the City Council
may approve the carryover of specific amounts. In 2022, expenditures exceeded budget in the General Fund
by $154,209 and the (nonmajor) Solid Waste Management Special Revenue Fund by $1,842.
F. Cash, Cash Equivalents, and Investments
Cash balances from all funds are combined and invested to the extent available in short-term investments.
Earnings from the pooled investments are allocated to the individual funds based on the average monthly
cash and investment balances of the respective funds. Certain bond proceeds may be held separately for
capital projects. Earnings on these accounts are allocated directly to the respective funds.
For purposes of the Statement of Cash Flows, the City considers all highly liquid debt instruments with an
original maturity from the time of purchase of three months or less to be cash equivalents. The proprietary
funds’ portion of the government-wide cash and investment pool is considered cash equivalent.
The City generally reports investments at fair value other than certain investment pools that are valued at
amortized cost.
The City categorizes its fair value measurements within the fair value hierarchy established by GAAP. The
hierarchy is based on the valuation inputs used to measure the fair value of the asset. Level 1 inputs are
quoted prices in active markets for identical assets; Level 2 inputs are significant other observable inputs;
and Level 3 inputs are significant unobservable inputs. Debt securities classified in Level 2 of the fair value
hierarchy are valued using a matrix pricing technique. Matrix pricing is used to value securities based on
the securities’ relationship to benchmark quoted prices.
See Note 2 for the City’s recurring fair value measurements as of the current year-end.
G. Receivables
Accounts receivable include amounts billed for services provided before year-end and lease receivable.
Unbilled utility enterprise fund receivables are also included for services provided in the year. The City
annually certifies delinquent utility accounts to the county for collection in the following year; therefore,
no allowance for doubtful accounts has been established for the delinquent utility receivables. Receivables
not expected to be fully collected within one year include loans, leases, deferred special assessments, and
delinquent property taxes receivable.
-40-
NOTE 1 – SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
H. Property Taxes
Property tax levies are set by the City Council in December of each year and are certified to Hennepin
County for collection in the following year. In Minnesota, counties act as collection agents for all property
taxes. The county spreads the levies over all taxable property. Such taxes become a lien on January 1 and
are recorded as receivables by the City on that date. Property taxes may be paid by taxpayers in two equal
installments on May 15 and October 15. The county provides tax settlements to cities and other taxing
districts three times a year; in July, December, and January.
Property taxes are recognized as revenue in the year levied in the government -wide financial statements
and proprietary fund financial statements. In the governmental fund financial statements, taxes are
recognized as revenue when received in cash or within 60 days after year-end. Taxes which remain unpaid
on December 31 are classified as delinquent taxes receivable and are offset by a deferred inflow of resources
in the governmental fund financial statements.
I. Special Assessments
Special assessments are levied against benefited properties for the cost or a portion of the cost of special
assessment improvement projects in accordance with Minnesota Statutes. These assessments are collectible
by the City over a term of years usually consistent with the term of the related bond issue. Collection of
annual installments (including interest) is handled by the County Auditor in the same manner as property
taxes. Property owners are allowed to (and often do) prepay future installments without interest or
prepayment penalties.
In governmental fund financial statements, revenue from special assessments is recognized by the City
when it becomes measurable and available to finance expenditures of the current fiscal period. In practice,
current and delinquent special assessments received by the City are recognized as revenue for the current
year. Special assessments are collected by the county and remitted by December 31 (remitted to the City
the following January) and are also recognized as revenue for the current year. All special assessments
receivable in governmental funds are completely offset by a deferred inflow of resources for assessments
not received within 60 days after year-end. In government-wide financial statements, special assessments
are recognized as revenues in the year for which they are certified. At December 31, 2022, the total
delinquent special assessment receivable balance was $40,088.
Once a special assessment roll is adopted, the amount attributed to each parcel is a lien upon that property
until full payment is made, or the amount is determined to be excessive by the City Council or court action.
If special assessments are allowed to go delinquent, the property is subject to tax forfeit sale and the
first proceeds of that sale (after costs, penalties and expenses of sale) are remitted to the City in payment of
delinquent special assessments. Generally, the City will collect the full amount of its special assessments
not adjusted by City Council or court action. Pursuant to Minnesota Statutes, a property shall be subject to
a tax forfeit sale after three years unless it is homesteaded, agricultural , or seasonal recreational land, in
which event the property is subject to such sale after five years.
J. Interfund Balances and Transfers
In the fund financial statements, balances between funds that are representative of lending or borrowing
arrangements are reported as either “due to/from other funds” (current portion) or “advances to/from other
funds.” All other outstanding balances between funds are reported as “due to/from other funds.” Interfund
balances and transfers reported in the fund financial statements are eliminated to the extent poss ible in the
government-wide financial statements. Any residual balances outstanding between the governmental
activities and business-type activities are reported in the government-wide financial statements as “internal
balances.”
-41-
NOTE 1 – SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
K. Inventory and Prepaid Items
Inventory is valued at cost using the first-in/first-out method. Inventory consists mainly of expendable
supplies held for consumption. Certain cash payment to vendors reflects costs applicable to future
accounting periods are recorded as prepaid items in both government-wide and fund financial statements.
Inventory and prepaid items of the governmental funds are recorded as expenditures when consumed rather
than when purchased.
L. Land Held for Resale
Land held for resale is valued at the lower of cost or estimated acquisition value.
M. Capital Assets
Capital assets, which include property, buildings, improvements, equipment, and infrastructure assets
(roads, bridges, sidewalks, and similar items) are reported in the applicable governmental or business-type
activities columns in the government-wide financial statements. Such assets are capitalized at historical
cost or estimated historical cost for assets where actual historical cost is not available. Donated assets are
recorded as capital assets at their estimated acquisition value on the date of donation. Leased capital assets
are recorded based on the measurement of payments applicable to the lease term. The City defines capital
assets as those with an initial, individual cost of more than $5,000 with an estimated useful life in excess of
two years or more. The cost of normal maintenance and repairs that do not add to the value of the asset or
materially extend asset lives are not capitalized.
Capital assets are reported in the government-wide and proprietary fund financial statements, but not in the
governmental fund financial statements. Capital assets are depreciated using the straight-line method over
their estimated useful lives. Land and construction in progress are not depreciated. Useful lives vary from
15 to 50 years for buildings and structures, 15 to 50 years for improvements other than buildings, and 3 to
20 years for vehicles and equipment. Leased assets are amortized over the term of the lease or over the
useful life of the applicable asset class previously described, if future ownership is anticipated.
N. Deferred Outflows/Inflows of Resources
In addition to assets and liabilities, statements of financial position or balance sheets will sometimes report
separate sections for deferred outflows or inflows of resources. These separate financial statement elements
represent a consumption or acquisition of net assets, respectively, that apply to future periods and so will
not be recognized as an outflow of resources (expense/expenditure) or inflow of financial resource
(revenue) until then.
The City reports deferred outflows and inflows of resources related to pensions in the government-wide
and proprietary fund Statements of Net Position. These deferred outflows and inflows result from
differences between expected and actual experience, changes of assumptions, changes in proportion,
differences between projected and actual earnings on pension plan investments, and contributions to the
plan subsequent to the measurement date and before the end of the reporting period. These amounts are
deferred and amortized as required under pension standards.
The City reports deferred inflows of resources related to leases. Lessors are required to recognize deferred
inflows of resources corresponding to lease receivables, which are reported in both the governmental fund
financial statements and the government-wide financial statements. These amounts are deferred and
amortized in a systematic and rationale manner over the term of the lease.
The City also reports deferred inflows or resources for resources received in advance, which is reported in
both the governmental fund financial statements and the government-wide financial statements. This item
represents amounts received before the applicable time requirements are met, but after all other eligibility
requirements have been met.
-42-
NOTE 1 – SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
Deferred inflows of resources from unavailable revenue arises only under a modified accrual basis of
accounting and, therefore, is only reported in governmental fund financial statements. The governmental
funds report unavailable revenues from two sources: property taxes and special assessments. These amounts
are deferred and recognized as an inflow of resources in the period that the amounts become available.
O. Long-Term Liabilities
In the government-wide financial statements and proprietary fund financial statements, long-term debt and
other long-term obligations are reported as liabilities. The recognition of bond premiums and discounts are
delayed and amortized over the life of the bonds using the straight-line method. Bonds payable are reported
net of the applicable bond premium or discount. Bond issuance costs are reported as an expense in the
period incurred.
In the fund financial statements, governmental fund types recognize bond premium and discounts, as well
as bond issuance costs, during the current period. The face amount of debt issued is reported as other
financing sources. Premiums received on debt issuances are reported as other financing sources, while
discounts on debt issuances are reported as other financing uses. Issuance costs, whether or not withheld
from the actual debt proceeds received, are reported as debt service expenditures.
P. Compensated Absences
A liability is recognized for unpaid vacation, sick leave, wellness days, and personal leave earned by
employees at the Balance Sheet date if it is probable the benefit will be paid as time off or at separation of
service. The City implemented a personal leave plan in 1994 in which all new employees, other than police
officers, participate. Employees who have had five or more years of service at the time of implementation
were allowed to choose between the personal leave plan or the vacation/sick leave plan. Under the
vacation/sick leave plan, employees are entitled to compensation for unpaid vacation time up to 160 hours
and one-third of their accumulated sick leave, to a maximum of 320 hours. Under personal leave, employees
are entitled to 200 hours of accumulated leave time. The Employee Leave Internal Service Fund is typically
used to liquidate governmental compensated absences payable.
Q. Other Post-Employment Benefits (OPEB)
Under Minnesota Statutes Chapter 471.61, Subd. 2b, public employers must allow retirees and their
dependents to continue coverage indefinitely in an employer-sponsored healthcare plan, under the following
conditions: 1) retirees must be receiving (or eligible to receive) an annuity from a Minnesota public pension
plan, 2) coverage must continue in a group plan until age 65, and retirees must pay no more than the group
premium, and 3) retirees are able to add dependent coverage during open enrollment period or qualifying
life event prior to retirement. All premiums are funded on a pay-as-you-go basis. The liability was
determined, in accordance with Governmental Accounting Standards Board (GASB) Statement No. 75, at
December 31, 2022. The Insurance Reserve Internal Service Fund is typically used to liquidate
governmental OPEB payable.
R. State-Wide Pension Plans
For purposes of measuring the net pension liability, deferred outflows/inflows of resources, and pension
expense, information about the fiduciary net position of the Public Employees Retirement Association
(PERA) and additions to/deductions from the PERA’s fiduciary net position have been determined on the
same basis as they are reported by the PERA. For this purpose, plan contributions are recognized as of
employer payroll paid dates and benefit payments and refunds are recognized when due and payable in
accordance with the benefit terms. Investments are reported at fair value.
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NOTE 1 – SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
S. Risk Management
The City is exposed to various risks of loss related to torts: theft of, damage to, and destruction of assets;
errors and omissions; and natural disasters. The City participates in the League of Minnesota Cities
Insurance Trust (LMCIT), a public entity risk pool for its general property and casualty, workers’
compensation, and other miscellaneous insurance coverage. The LMCIT operates as a common risk
management and insurance program for a large number of cities in Minnesota. The City pays an annual
premium to the LMCIT for insurance coverage. The LMCIT agreement provides that the trust will be
self-sustaining through member premiums and will reinsure through commercial companies for claims in
excess of certain limits. The City also carries commercial insurance for certain other risks of loss. Settled
claims resulting from these risks did not exceed insurance coverage in any of the last three fiscal years.
There were no significant reductions in insurance coverage in the current year.
T. Use of Estimates
The preparation of financial statements in conformity with GAAP requires management to make estimates
and assumptions that affect the amounts reported at the date of the financial statements during the reporting
period. Actual results could differ from those estimates.
U. Fund Balance Classifications
In the fund financial statements, governmental funds report fund balance in classifications that disclose
constraints for which amounts in those funds can be spent. These classifications are as follows:
• Nonspendable – Consists of amounts that are not in spendable form, such as prepaid items,
inventory, and other long-term assets.
• Restricted – Consists of amounts related to externally imposed constraints established by creditors,
grantors, or contributors; or constraints imposed by state statutory provisions.
• Committed – Consists of internally imposed constraints established by resolution of the City
Council, which cannot be used for any other purpose unless the City Council removes or changes
the specified use by taking the same type of action employed to previously commit those amounts.
• Assigned – Consists of internally imposed constraints representing amounts intended to be used by
the City for specific purposes that do not meet the criteria to be classified as restricted or committed.
Assigned amounts represent intended uses established by the governing body itself or by an official
to which the governing body delegates the authority. The City Council has adopted a fund balance
policy, which delegates the authority to assign amounts for specific purposes to the finance manager
or city manager.
• Unassigned – The residual classification for the General Fund, which also reflects negative residual
amounts in other funds.
When both restricted and unrestricted resources are available for use, it is the City’s policy to first use
restricted resources, and then use unrestricted resources as needed. When committed, assigned, or
unassigned resources are available for use, it is the City’s policy to use resources in the following
order: 1) committed, 2) assigned, and 3) unassigned.
The City’s fund balance policy includes a fund balance goal in the General Fund of maintaining an
unassigned fund balance of 48 percent of the next year’s budgeted General Fund expenditures.
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NOTE 1 – SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
V. Net Position
In the government-wide and proprietary fund financial statements, net position represents the difference
between assets, deferred outflows of resources, liabilities, and deferred inflows of resources. Net position
is displayed in three components:
• Net Investment in Capital Assets – Consists of capital assets, net of accumulated
depreciation/amortization, reduced by any outstanding debt attributable to acquire capital assets.
• Restricted Net Position – Consists of net position restricted when there are limitations imposed
on its use through external restrictions imposed by creditors, grantors, or laws or regulations of
other governments.
• Unrestricted Net Position – All other elements of net position that do not meet the definition of
“restricted” or “net investment in capital assets.”
The City applies restricted resources first when an expense is incurred for which both restricted and
unrestricted resources are available.
Net investment in capital assets at year-end is calculated as follows:
Governmental Business-Type
Activities Activities Total
Capital assets, net 74,538,608$ 30,312,273$ 104,850,881$
Less applicable
Bonds payable (35,490,868) (6,115,132) (41,606,000)
Unamortized bond premiums (2,251,021) (154,281) (2,405,302)
Leases payable (267,315) (6,509) (273,824)
Add applicable
Unspent bond proceeds 515,997 – 515,997
Net investment in capital assets 37,045,401$ 24,036,351$ 61,081,752$
W. Deficit Fund Equity
The following funds had fund balance or net position deficits at December 31, 2022:
Fund Amount
HRA Bonds Debt Service Fund 1,905,269$
Internal service funds
Insurance Reserve 290,480$
The City plans to fund these deficits with future property taxes, tax increments, or transfers.
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NOTE 1 – SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
X. Change in Accounting Principle
During the year ended December 31, 2022, the City implemented GASB Statement No. 87, Leases. This
statement included major changes in recognition of certain lease assets and liabilities for leases that
previously were classified as operating leases and recognized as inflows of resources or outflows of
resources based on the payment provisions of the contract. It establishes a single model for lease accounting
based on the foundational principle that leases are financings of the right to use an underlying asset. Under
this statement, a lessee is required to recognize a lease liability and an intangible right -to-use lease asset,
and a lessor is required to recognize a lease receivable and a deferred inflow of resources. The
implementation of the new GASB statement in the current year resulted in the restatement of certain
balances reported by the City as of the beginning of the 2022 fiscal year, but did not require restatement of
beginning fund balances or net position. See Notes 4, 6, and 7 for additional detail on this change in the
current year.
NOTE 2 – CASH AND INVESTMENTS
A. Components of Cash and Investments
Cash and investments at year-end consist of the following:
Deposits 12,719,361$
Investments 36,590,999
Petty cash 2,500
Total 49,312,860$
B. Deposits
In accordance with applicable Minnesota Statutes, the City maintains deposits at depository banks
authorized by the City Council, including checking accounts and certificates of deposit. The following is
considered the most significant risk associated with deposits:
Custodial Credit Risk – In the case of deposits, this is the risk that in the event of a bank failure, the
City’s deposits may be lost.
Minnesota Statutes require that all deposits be protected by federal deposit insurance, corporate surety
bond, or collateral. The market value of collateral pledged must equal 110 percent of the deposits not
covered by federal deposit insurance or corporate surety bonds. Authorized collateral includes treasury
bills, notes, and bonds; issues of U.S. government agencies; general obligations rated “A” or better;
revenue obligations rated “AA” or better; irrevocable standard letters of credit issued by the Federal
Home Loan Bank; and certificates of deposit. Minnesota Statutes require that securities pledged as
collateral be held in safekeeping in a restricted account at the Federal Reserve Bank or in an account at
a trust department of a commercial bank or other financial institution that is not owned or controlled
by the financial institution furnishing the collateral. The City has no additional deposit policies
addressing custodial credit risk.
At year-end, the carrying amount of the City’s deposits was $12,719,361, while the balance on the bank
records was $12,939,607. All deposits at year-end were fully covered by federal deposit insurance or
collateral held by the City’s agent in the City’s name.
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NOTE 2 – CASH AND INVESTMENTS (CONTINUED)
C. Investments
The City has the following investments at year-end:
Fair Value
Measurements
Investment Type Rating Agency Using No Maturity Less Than 1 1 to 5 Greater Than 5 Total
U.S. treasury securities AAA Moody’s Level 2 –$ –$ 6,299,754$ –$ 6,299,754$
U.S. agency securities AA S&P Level 2 – 3,336,771 11,504,067 349,860 15,190,698
State and local bonds AAA S&P Level 2 – – 814,367 – 814,367
State and local bonds AA S&P Level 2 – 245,261 2,325,605 228,117 2,798,983
State and local bonds AAA Moody’s Level 2 – – 260,372 – 260,372
State and local bonds AA Moody’s Level 2 – – 694,661 – 694,661
Negotiable certificates of deposit Level 2 – 2,190,136 229,206 – 2,419,342
4M Fund investment pool Not Applicable 7,247,315 – – – 7,247,315
Mutual funds AAA S&P Level 1 865,507 – – – 865,507
Total investments 8,112,822$ 5,772,168$ 22,128,032$ 577,977$ 36,590,999$
Not Rated
Credit Risk
Not Rated
Interest Risk –
Maturity Duration in Years
The Minnesota Municipal Money Market (4M) Fund is external investment pool regulated by Minnesota
Statutes that is not registered with the Securities and Exchange Commission (SEC), but follows the
regulatory rules of the SEC. The City’s investment in this fund is measured at the value per share provided
by the pool, which is based on an amortized cost method that approximates fair value. There are no
restrictions or limitations on withdrawals from the 4M Fund.
Investments are subject to various risks, the following of which are considered the most significant:
Credit Risk – This is the risk that an issuer or other counterparty to an investment will not fulfill its
obligations. Minnesota Statutes limit the City’s investments to direct obligations or obligations
guaranteed by the United States or its agencies; shares of investment companies registered under the
Federal Investment Company Act of 1940 that receive the highest credit rating, are rated in one of the
two highest rating categories by a statistical rating agency, and all of the investments have a final
maturity of 13 months or less; general obligations rated “A” or better; revenue obligations rated “AA”
or better; general obligations of the Minnesota Housing Finance Agency rated “A” or better; bankers’
acceptances of United States banks eligible for purchase by the Federal Reserve System; commercial
paper issued by United States corporations or their Canadian subsidiaries, rated of the highest quality
category by at least two nationally recognized rating agencies, and maturing in 270 days or less;
Guaranteed Investment Contracts guaranteed by a United States commercial bank, domestic branch of
a foreign bank, or a United States insurance company, and with a credit quality in one of the top
two highest categories; repurchase or reverse purchase agreements and securities lending agreements
with financial institutions qualified as a “depository” by the government entity, with banks that are
members of the Federal Reserve System with capitalization exceeding $10,000,000; that are a primary
reporting dealer in U.S. government securities to the Federal Reserve Bank of New York; or certain
Minnesota securities broker-dealers. The City’s investment policies do not further address credit risk.
Custodial Credit Risk – For investments, this is the risk that in the event of a failure of the counterparty
to an investment transaction (typically a broker-dealer) the City would not be able to recover the value
of its investments or collateral securities that are in the possession of an outside party . The City does
not have a formal investment policy addressing this risk, but typically limits its exposure by purchasing
insured or registered investments, or by control of who holds the securities.
Concentration Risk – This is the risk associated with investing a significant portion of the City’s
investment (considered 5.0 percent or more) in the securities of a single issuer, excluding
U.S. guaranteed investments (such as treasuries), investment pools, and mutual funds. The City’s
investment policies do not limit the concentration of investments. As of December 31, 2022, the City
had 17.6 percent invested in securities issued by the Federal National Mortgage Association and
17.2 percent invested in securities issued by the Federal Home Loan Mortgage Corporation.
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NOTE 2 – CASH AND INVESTMENTS (CONTINUED)
Interest Rate Risk – This is the risk of potential variability in the fair value of fixed rate investments
resulting from changes in interest rates (the longer the period for which an interest rate is fixed, the
greater the risk). The City does not have an investment policy limiting the duration of investments.
NOTE 3 – LOAN RECEIVABLES
The City has made several business subsidy loans to local businesses, some of which were funded with
grant proceeds received from Hennepin County. The terms and periods of repayment vary with each loan.
Loans receivable in the Economic Development Authority Special Revenue Fund at December 31, 2022
totaled $234,500. Loans receivable in nonmajor governmental funds totaled $67,711.
NOTE 4 – LEASES RECEIVABLE
The City has entered into two agreements to lease space for cellular antennas on city owned structures or
property. One agreement requires monthly payments through December 2064 with an interest rate of
1.75 percent. The other agreement requires monthly payments through December 2039 with an interest rate
of 1.46 percent. The City received total principal and interest payments of $38,903 and $13,800,
respectively, on these agreements in 2022.
NOTE 5 – INTERFUND BALANCES AND TRANSFERS
A. Internal Balances
The composition of internal balances as of December 31, 2022 is as follows:
Receivable Fund Payable Fund Amount Purpose
Due from/to other funds
Governmental Business-type
General Fund Ice Arena 9,513$ Cash flow
Governmental Governmental
Nonmajor governmental Street Infrastructure 75,000 Finance capital purchase
Total due from/to other funds 84,513
Advances to/from other funds
Governmental Governmental
Economic Development Authority HRA Construction 1,228,228 Finance capital purchase
Economic Development Authority HRA Bonds 362,014 Finance capital purchase
HRA Construction HRA Bonds 2,065,497 Finance capital purchase
Nonmajor governmental Street Infrastructure 225,000 Finance capital purchase
Governmental Business-type
Nonmajor governmental Ice Arena 650,000 Finance capital purchase
Total advances from/to other funds 4,530,739
Interfund activity eliminated from government-wide statements (3,955,739)
Internal service fund activities related to the enterprise funds 387,995
Total internal balances – government-wide statements 1,047,508$
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NOTE 5 – INTERFUND BALANCES AND TRANSFERS (CONTINUED)
In 2022, the General Fund loaned the Ice Arena Fund $9,513 for cash flow purposes, the balance is expected
to be paid back in 2023.
The Economic Development Authority Special Revenue Fund loaned the HRA Construction Capital
Projects Fund $2,433,162 in 2008, for the purchase of land at Bass Lake Road. The interfund loan matures
in 2028 and carries an interest rate of 4.00 percent. As of December 31, 2022, the balance outstanding was
$1,228,228.
In 2015, the Economic Development Authority Fund and the HRA Construction Fund loaned the HRA
Bonds Debt Service Fund $322,016 and $1,837,286, respectively, for the purchase of the Hy-Vee property.
The interfund loan matures in 2042 and carries an interest rate of 4.00 percent. As o f December 31, 2022,
the balances outstanding, including accrued interest, were $362,014 and $2,065,497, respectively.
In 2016, the Temporary Financing Fund loaned the Street Infrastructure Capital Projects Fund $750,000 to
fund future capital purchases. The loan will be paid back over a 10-year period with a 2.00 percent interest
rate. As of December 31, 2022, the balance outstanding was $300,000.
In 2022, The Temporary Financing Fund loaned the Ice Arena Enterprise Fund $650,000 to fund capital
improvements. The interest free loan will be paid back within a 15-year period. As of December 31, 2022,
the balance outstanding was $650,000.
B. Interfund Transfers
Interfund transfers during the year ended December 31, 2022 were as follows:
Nonmajor Ice Arena Internal
General EDA Governmental Enterprise Service Total
Transfers out
General –$ 100,000$ (3)842,382$ (3)–$ 200,000$ (3)1,142,382$
EDA 37,416 (1)– 12,844 (4)– – 50,260
Street Infrastructure 400,000 (2)– – – – 400,000
Park Infrastructure 100,000 (2)– – 500,000 (6)– 600,000
Nonmajor governmental – – 741,664 (5)– – 741,664
Sewer Utility Enterprise 58,368 (1)– – – – 58,368
Water Utility Enterprise 60,876 (1)– – – – 60,876
Golf Course Enterprise 11,310 (1)– – – – 11,310
Ice Arena Enterprise 11,310 (1)– – – – 11,310
Storm Water Enterprise 25,452 (1)– – – – 25,452
Internal Service 97,308 (1)– – – – 97,308
Total 802,040$ 100,000$ 1,596,890$ 500,000$ 200,000$ 3,198,930$
(1)Transfers to cover administrative charges paid for by the General Fund.
(2)
(3)Transfers from General Fund to reimburse approved uses of federal ARPA funding.
(4)Transfer from EDA for CEE revolving loan activity.
(5)
(6)Transfer from Park Infrastructure Fund to Ice Arena Enterprise Fund for debt service and capital improvements.
Transfers In
Funds
Transfers from Street Infrastructure Fund and Park Infrastructure Fund to the General Fund for Emerald Ash Borer Program.
Transfer from nonmajor governmental Temporary Financing Fund to nonmajor governmental Public Works Facility CIP Fund for public works
facility capital improvements.
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NOTE 6 – CAPITAL ASSETS
Capital asset activity for the year ended December 31, 2022 was as follows:
A. Changes in Capital Assets Used in Governmental Activities
Change in
Beginning Accounting
of Year Principle Additions Deletions End of Year
Capital assets, not depreciated/amortized
Land 994,268$ –$ –$ –$ 994,268$
Construction in progress 23,726,228 – 2,987,072 (21,599,221) 5,114,079
Total capital assets,
not depreciated/amortized 24,720,496 – 2,987,072 (21,599,221) 6,108,347
Capital assets, depreciated/amortized
Buildings and structures 25,408,669 – – – 25,408,669
Vehicles and equipment 11,383,148 (114,728) 757,007 (497,656) 11,527,771
Improvements other than buildings 47,294,718 – 21,470,506 – 68,765,224
Leased vehicles and equipment – 96,986 231,093 – 328,079
Total capital assets,
depreciated/amortized 84,086,535 (17,742) 22,458,606 (497,656) 106,029,743
Less accumulated depreciation/amortization
Buildings and structures (5,920,091) – (645,908) – (6,565,999)
Vehicles and equipment (8,564,913) 2,352 (529,879) 494,749 (8,597,691)
Improvements other than buildings (19,610,617) – (2,758,706) – (22,369,323)
Leased vehicles and equipment – – (66,469) – (66,469)
Total accumulated
depreciation/amortization (34,095,621) 2,352 (4,000,962) 494,749 (37,599,482)
Net capital assets, depreciated/amortized 49,990,914 (15,390) 18,457,644 (2,907) 68,430,261
Total capital assets, net 74,711,410$ (15,390)$ 21,444,716$ (21,602,128)$ 74,538,608$
B. Changes in Capital Assets Used in Business-Type Activities
Change in
Beginning Accounting
of Year Principle Additions Deletions End of Year
Capital assets, not depreciated/amortized
Land 485,042$ –$ –$ –$ 485,042$
Construction in progress 1,598,507 – 1,749,104 (2,436,986) 910,625
Total capital assets,
not depreciated/amortized 2,083,549 – 1,749,104 (2,436,986) 1,395,667
Capital assets, depreciated/amortized
Buildings and structures 10,797,364 – – – 10,797,364
Vehicles and equipment 3,065,892 – 236,690 – 3,302,582
Improvements other than buildings 28,992,200 – 2,209,546 – 31,201,746
Leased vehicles and equipment – 14,300 – – 14,300
Total capital assets,
depreciated/amortized 42,855,456 14,300 2,446,236 – 45,315,992
Less accumulated depreciation/amortization
Buildings and structures (5,072,350) – (212,181) – (5,284,531)
Vehicles and equipment (2,194,649) – (81,972) – (2,276,621)
Improvements other than buildings (8,066,628) – (763,806) – (8,830,434)
Leased vehicles and equipment – – (7,800) – (7,800)
Total accumulated
depreciation/amortization (15,333,627) – (1,065,759) – (16,399,386)
Net capital assets, depreciated/amortized 27,521,829 14,300 1,380,477 – 28,916,606
Total capital assets, net 29,605,378$ 14,300$ 3,129,581$ (2,436,986)$ 30,312,273$
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NOTE 6 – CAPITAL ASSETS (CONTINUED)
C. Depreciation Expense by Function
Depreciation expense for the year ended December 31, 2022 was charged to the following functions:
Governmental activities
General government 479,517$
Public safety 65,305
Public works 2,058,764
Culture and recreation 739,838
Internal service 657,538
Total depreciation/amortization – governmental activities 4,000,962$
Business-type activities
Sewer utility 210,745$
Water utility 312,298
Golf course 45,950
Ice arena 226,267
Storm water 251,014
Street lighting 19,485
Total depreciation/amortization – business-type activities 1,065,759$
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NOTE 7 – LONG-TERM LIABILITIES
A. General Obligation (G.O.) Bonds
The City issues G.O. bonds to provide funds for the acquisition and construction of major capital facilities.
G.O. bonds have been issued for both governmental and business-type activities. These bonds are reported
in the proprietary funds if they are expected to be repaid from proprietary fund revenues.
The following G.O. bonds will be repaid from future tax levies or abatements:
Final Balance –
Description Original Issue Interest Rate Issue Date Maturity Date End of Year
G.O. Street Reconstruction Bonds, Series 2015B 3,825,000$ 2.25–3.00%12/30/2015 02/01/2031 2,495,000$
G.O. Street Reconstruction Bonds, Series 2016A 4,855,000$ 2.25–3.00%12/29/2016 02/01/2033 3,765,000
G.O. Street Reconstruction Bonds, Series 2017A 18,435,000$ 3.00–5.00%12/28/2017 02/01/2034 15,605,000
G.O. Street Reconstruction Bonds, Series 2018A 9,520,000$ 3.25–5.00%12/20/2018 02/01/2035 8,565,000
G.O. Street Reconstruction Bonds, Series 2019A 5,235,000$ 3.00–4.00%07/18/2019 02/01/2035 4,695,000
G.O. Tax Abatement Bonds, Series, 2021A 2,020,000$ 1.00%03/11/2021 12/01/2028 1,555,000
Total G.O. bonds 36,680,000$
The annual debt service to maturity for G.O. bonds are as follows:
Year Ending
December 31,Principal Interest Principal Interest Principal Interest
2023 2,132,218$ 1,125,983$ 497,783$ 90,360$ 2,630,001$ 1,216,343$
2024 2,233,460 1,028,748 516,540 80,496 2,750,000 1,109,244
2025 2,324,080 938,824 535,920 70,788 2,860,000 1,009,612
2026 2,407,610 842,662 552,390 61,231 2,960,000 903,893
2027 2,516,139 730,528 573,862 51,240 3,090,001 781,768
2028–2032 13,860,265 2,267,654 1,429,736 116,740 15,290,001 2,384,394
2033–2035 6,934,764 291,993 165,233 2,479 7,099,997 294,472
32,408,536$ 7,226,392$ 4,271,464$ 473,334$ 36,680,000$ 7,699,726$
Governmental Activities Business-Type Activities Total
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NOTE 7 – LONG-TERM LIABILITIES (CONTINUED)
B. G.O. Tax Increment Bonds
The following bonds were issued for development purposes. The additional tax increment resulting from
the increased tax capacity of the redeveloped properties has been pledged to retire the related debt. Tax
increment revenues are projected to produce over 55 percent of the debt service requirements over the life
of the bonds. For the current year, principal and interest paid and total related tax increment revenues were
$869,178 and $696,185, respectively.
Final Balance –
Description Original Issue Interest Rate Issue Date Maturity Date End of Year
G.O. Tax Increment Refunding Bonds, Series, 2012A 2,695,000$ 2.00–2.45%01/11/2012 02/01/2025 800,000$
G.O. Tax Increment Refunding Bonds, Series, 2012B 1,330,000$ 1.35–4.65%01/11/2012 02/01/2031 865,000
G.O. Tax Increment Refunding Bonds, Series, 2015A 5,960,000$ 2.00–3.00%06/17/2015 02/01/2032 4,180,000
Total G.O. tax increment bonds 5,845,000$
The annual debt service to maturity for G.O. bonds are as follows:
Year Ending
December 31,Principal Interest Principal Interest Principal Interest
2023 621,558$ 126,424$ 98,442$ 27,346$ 720,000$ 153,770$
2024 638,933 111,914 101,067 25,351 740,000 137,265
2025 657,620 96,307 102,380 23,291 760,000 119,598
2026 389,995 82,645 105,005 20,929 495,000 103,574
2027 407,370 71,223 107,630 18,271 515,000 89,494
2028–2032 2,031,856 159,867 583,144 44,132 2,615,000 203,999
4,747,332$ 648,380$ 1,097,668$ 159,320$ 5,845,000$ 807,700$
Governmental Activities TotalBusiness-Type Activities
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NOTE 7 – LONG-TERM LIABILITIES (CONTINUED)
C. G.O. Revenue Notes
The following notes were issued to finance capital improvements in the enterprise funds. They will be
repaid from future revenues pledged from the Sewer Utility, Water Utility, and Storm Water Funds and are
backed by the taxing power of the City. Annual principal and interest payments on the notes are expected
to require less than 3, 6, and 12 percent of revenues from the Sewer Utility, Water Utility, and Storm Water
Funds, respectively. Principal and interest paid for the current year and total customer revenues for the
Sewer Utility Fund were $78,443 and $4,026,715, respectively. Principal and interest paid for the current
year and total customer revenues for the Water Utility Fund were $315,511 and $5,526,619, respectively.
Principal and interest paid for the current year and total customer revenues for the Storm Water Fund were
$198,210 and $1,378,944, respectively.
Final Balance –
Description Original Issue Interest Rate Issue Date Maturity Date End of Year
2011 G.O. Public Facilities Authority Note 411,738$ 1.70%02/23/2011 08/20/2029 167,000$
2013 G.O. Public Facilities Authority Note 1,035,000$ 1.00%07/24/2013 08/20/2032 579,000
Total G.O. revenue notes 746,000$
The annual debt service to maturity for G.O. revenue notes are as follows:
Year Ending
December 31,Principal Interest
2023 78,000$ 8,634$
2024 79,000 7,692
2025 79,000 6,741
2026 81,000 5,789
2027 82,000 4,810
2028–2032 347,000 10,257
746,000$ 43,923$
Business-Type Activities
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NOTE 7 – LONG-TERM LIABILITIES (CONTINUED)
D. Leases Payable
The City has entered into a number of lease agreements for vehicles and equipment. The total amount of
underlying lease assets by major classes and the related accumulated amortization is presented in Note 6 to
the basic financial statements. The leases will be repaid by the Central Garage Internal Service Fund and
the Golf Course Enterprise Fund. At year-end, the City has the following lease liabilities outstanding:
Final Balance –
Description Original Issue Interest Rate Issue Date Maturity Date End of Year
Governmental activities
2022 Chevrolet Tahoe #181 31,086$ 6.85%06/22/2022 06/30/2026 27,595$
2022 Chevrolet Tahoe #182 32,564$ 6.49%07/06/2022 07/31/2026 29,092
2022 Ford Police Interceptor Utility #101 34,722$ 6.37%05/13/2022 05/31/2026 29,727
2021 Ford Police Interceptor Utility #174 34,822$ 5.12%03/03/2022 03/31/2026 28,176
2021 Ford Police Interceptor Utility #176 33,413$ 4.49%12/27/2021 12/31/2025 25,329
2021 Ford Police Interceptor Utility #175 33,230$ 4.25%11/15/2021 11/30/2025 25,263
2021 Ford Police Interceptor Utility #179 31,761$ 5.95%04/04/2022 04/30/2026 26,513
2021 Ford Police Interceptor Utility #180 31,621$ 4.85%02/02/2022 02/28/2026 25,058
2021 Ford Police Interceptor Utility #178 30,343$ 4.25%11/15/2021 11/30/2025 23,069
2021 Ford Police Interceptor Utility #177 34,517$ 5.05%02/07/2022 02/28/2026 27,493
Total – governmental activities 267,315
Business-type activities
Golf carts (7)14,300$ 0.33%01/01/2022 10/31/2023 6,509
Total lease liability 273,824$
The annual debt service to maturity for leases payable are as follows:
Year Ending
December 31,Principal Interest Principal Interest Principal Interest
2023 78,237$ 12,591$ 6,509$ 10$ 84,746$ 12,601$
2024 82,522 8,306 – – 82,522 8,306
2025 84,805 3,779 – – 84,805 3,779
2026 21,751 339 – – 21,751 339
267,315$ 25,015$ 6,509$ 10$ 273,824$ 25,025$
TotalGovernmental Activities Business-Type Activities
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NOTE 7 – LONG-TERM LIABILITIES (CONTINUED)
E. Changes in Long-Term Liabilities
Long-term liability activity for the year ended December 31, 2022, was as follows:
Change in
Beginning Accounting Due Within
of Year Principle Additions Deletions End of Year One Year
Governmental activities
Bonds payable
G.O. bonds 34,447,225$ –$ –$ 2,038,689$ 32,408,536$ 2,132,218$
G.O. tax increment bonds 5,350,170 – – 602,838 4,747,332 621,558
Add – premiums on bonds 2,423,989 – – 151,966 2,272,023 –
Total bonds payable, net 42,221,384 – – 2,793,493 39,427,891 2,753,776
Leases payable 112,376 (15,390) 231,093 60,764 267,315 78,237
Compensated absences 875,089 – 807,703 819,779 863,013 86,302
Total governmental activities 43,208,849 (15,390) 1,038,796 3,674,036 40,558,219 2,918,315
Business-type activities
Bonds and notes payable
G.O. bonds 4,747,775 – – 476,311 4,271,464 497,783
G.O. tax increment bonds 1,194,830 – – 97,162 1,097,668 98,442
G.O. revenue notes 888,000 – – 142,000 746,000 78,000
Add – premiums on bonds 167,727 – – 13,446 154,281 –
Total bonds and notes payable, net 6,998,332 – – 728,919 6,269,413 674,225
Leases payable – 14,300 – 7,791 6,509 6,509
Total business-type activities 6,998,332 14,300 – 736,710 6,275,922 680,734
Total government-wide 50,207,181$ (1,090)$ 1,038,796$ 4,410,746$ 46,834,141$ 3,599,049$
Internal service funds predominantly serve the governmental funds. Accordingly, long-term liabilities for
internal service funds are included as part of the above totals for governmental activities.
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NOTE 8 – COMPONENTS OF FUND BALANCE At December 31, 2022, the City had the following fund balances:
Economic
Development HRA Street
General Authority Construction Infrastructure
Nonspendable 12,957$ –$ –$ –$
Restricted
Economic development – – 6,628,845 –
Public safety – police expenditures – – – –
Ice arena – – – –
Capital improvements – – – –
Debt service – – – –
Total restricted – – 6,628,845 –
Committed
Emerald ash borer tree removal 79,634 – – –
Solid waste operations – – – –
Economic development – 4,333,830 – –
Total committed 79,634 4,333,830 – –
Assigned
City Hall improvements – – – –
Public works facility improvements – – – –
Street improvements – – – 1,370,801
General improvements – – – –
Capital equipment – – – –
Park improvements – – – –
Total assigned – – – 1,370,801
Unassigned 7,655,481 – – –
Total 7,748,072$ 4,333,830$ 6,628,845$ 1,370,801$
Other
Park Governmental
Infrastructure HRA Bonds Funds Total
Nonspendable –$ –$ –$ 12,957$
Restricted
Economic development – – – 6,628,845
Public safety – police expenditures – – 128,930 128,930
Ice arena – – 5,236 5,236
Capital improvements – – 515,997 515,997
Debt service – – 3,323,035 3,323,035
Total restricted – – 3,973,198 10,602,043
Committed
Emerald ash borer tree removal – – – 79,634
Solid waste operations – – 218,782 218,782
Economic development – – 92,057 4,425,887
Total committed – – 310,839 4,724,303
Assigned
City Hall improvements – – 533,245 533,245
Public works facility improvements – – 3,571,542 3,571,542
Street improvements – – – 1,370,801
General improvements – – 2,451,214 2,451,214
Capital equipment – – 783,471 783,471
Park improvements 1,604,089 – – 1,604,089
Total assigned 1,604,089 – 7,339,472 10,314,362
Unassigned – (1,905,269) – 5,750,212
Total 1,604,089$ (1,905,269)$ 11,623,509$ 31,403,877$
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NOTE 9 – DEFINED BENEFIT PENSION PLANS – STATE-WIDE
A. Plan Descriptions
The City participates in the following cost-sharing, multiple-employer defined benefit pension plans
administered by the PERA of Minnesota. The PERA’s defined benefit pension plans are established and
administered in accordance with Minnesota Statutes, Chapters 353 and 356. The PERA’s defined benefit
pension plans are tax qualified plans under Section 401(a) of the Internal Revenue Code (IRC).
1. General Employees Retirement Fund (GERF)
All full-time and certain part-time employees of the City are covered by the GERF. The GERF
members belong to the Coordinated Plan. Coordinated Plan members are covered by Social
Security.
2. Public Employees Police and Fire Fund (PEPFF)
The Public Employees Police and Fire Fund (PEPFF), originally established for police officers and
firefighters not covered by a local relief association, now covers all police officers and firefighters
hired since 1980. Effective July 1, 1999, the PEPFF also covers police officers and firefighters
belonging to local relief associations that elected to merge with and transfer assets and
administration to the PERA.
B. Benefits Provided
The PERA provides retirement, disability, and death benefits. Benefit provisions are established by state
statutes and can only be modified by the State Legislature. Vested, terminated employees who are entitled
to benefits, but are not receiving them yet, are bound by the provisions in effect at the time they last
terminated their public service.
1. GERF Benefits
Benefits are based on a member’s highest average salary for any five successive years of allowable
service, age, and years of credit at termination of service. Two methods are used to compute
benefits for the PERA’s Coordinated Plan members. Members hired prior to July 1, 1989, receive
the higher of Method 1 or Method 2 formulas. Only Method 2 is used for members hired after
June 30, 1989. Under Method 1, the accrual rate for Coordinated Plan members is 1.2 percent for
each of the first 10 years of service, and 1.7 percent for each additional year. Under Method 2, the
accrual rate for Coordinated Plan members is 1.7 percent for all years of service. For members
hired prior to July 1, 1989, a full annuity is available when age plus years of service equal 90, and
normal retirement age is 65. For members hired on or after July 1, 1989, normal retirement age is
the age for unreduced Social Security benefits capped at age 66.
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NOTE 9 – DEFINED BENEFIT PENSION PLANS – STATE-WIDE (CONTINUED)
Benefit increases are provided to benefit recipients each January. The post-retirement increase is
equal to 50.0 percent of the cost of living adjustment (COLA) announced by the Social Security
Administration, with a minimum increase of at least 1.0 percent and a maximum of 1.5 percent.
Recipients that have been receiving the annuity or benefit for at least a full year as of the June 30
before the effective date of the increase, will receive the full increase. Recipients receiving the
annuity or benefit for at least one month, but less than a full year as of the June 30 before the
effective date of the increase, will receive a reduced prorated increase. For members retiring on
January 1, 2024 or later, the increase will be delayed until normal retirement age (age 65 if hired
prior to July 1, 1989, or age 66 for individuals hired on or after July 1, 1989). Members retiring
under Rule of 90 are exempt from the delay to normal retirement.
2. PEPFF Benefits
Benefits for the PEPFF members first hired after June 30, 2010 but before July 1, 2014, vest on a
prorated basis from 50.0 percent after five years, up to 100.0 percent after 10 years of credited
service. Benefits for the PEPFF members first hired after June 30, 2014 vest on a prorated basis
from 50.0 percent after 10 years, up to 100.0 percent after 20 years of credited service. The annuity
accrual rate is 3.0 percent of average salary for each year of service. For Police and Fire Plan
members who were first hired prior to July 1, 1989, a full annuity is available when age plus years
of service equal at least 90.
Benefit increases are provided to benefit recipients each January. The post-retirement increase is
fixed at 1.0 percent. Recipients that have been receiving the annuity or benefit for at least 36 months
as of the June 30 before the effective date of the increase, will receive the full increase. Recipients
receiving the annuity or benefit for at least 25 months, but less than 36 months as of the June 30
before the effective date of the increase, will receive a reduced prorated increase.
C. Contributions
Minnesota Statutes, Chapter 353 sets the rates for employer and employee contributions. Contribution rates
can only be modified by the State Legislature.
1. GERF Contributions
Coordinated Plan members were required to contribute 6.50 percent of their annual covered salary
in fiscal year 2022, and the City was required to contribute 7.50 percent for Coordinated Plan
members. The City’s contributions to the GERF for the year ended December 31, 2022, were
$360,677. The City’s contributions were equal to the required contributions as set by state statutes.
2. PEPFF Contributions
Police and Fire Plan members were required to contribute 11.80 percent of their annual covered
salary in fiscal year 2022, and the City was required to contribute 17.70 percent for Police and Fire
Plan members. The City’s contributions to the PEPFF for the year ended December 31, 2022, were
$588,118. The City’s contributions were equal to the required contributions as set by state statutes.
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NOTE 9 – DEFINED BENEFIT PENSION PLANS – STATE-WIDE (CONTINUED)
D. Pension Costs
1. GERF Pension Costs
At December 31, 2022, the City reported a liability of $5,100,502 for its proportionate share of the
GERF’s net pension liability. The City’s net pension liability reflected a reduction, due to the state
of Minnesota’s contribution of $16.0 million. The state of Minnesota is considered a nonemployer
contributing entity and the state’s contribution meets the definition of a special funding situation.
The state of Minnesota’s proportionate share of the net pension liability associated with the City
totaled $149,558. The net pension liability was measured as of June 30, 2022, and the total pension
liability used to calculate the net pension liability was determined by an actuarial valuation as of
that date. The City’s proportion of the net pension liability was based on the City’s contributions
received by the PERA during the measurement period for employer payroll paid dates from July 1,
2021 through June 30, 2022, relative to the total employer contributions received from all of the
PERA’s participating employers. The City’s proportionate share was 0.0644 percent at the end of
the measurement period and 0.0645 percent for the beginning of the period.
The amount recognized by the City as its proportionate share of the net pension liability, the direct
aid, and total portion of the net pension liability that was associated with the City were as follows:
City’s proportionate share of the net pension liability 5,100,502$
State’s proportionate share of the net pension liability
associated with the City 149,558$
For the year ended December 31, 2022, the City recognized pension expense of $739,340 for its
proportionate share of the GERF’s pension expense. In addition, the City recognized $22,347 as
pension expense (and grant revenue) for its proportionate share of the state of Minnesota’s
contribution of $16.0 million to the GERF.
At December 31, 2022, the City reported its proportionate share of the GERF’s deferred outflows
of resources and deferred inflows of resources related to pensions from the following sources:
Deferred Deferred
Outflows Inflows
of Resources of Resources
Differences between expected and actual economic experience 42,603$ 54,426$
Changes in actuarial assumptions 1,156,074 20,165
Net collective difference between projected and actual
investment earnings 79,918 –
Changes in proportion 80,455 3,202
Contributions paid to the PERA subsequent to the
measurement date 176,114 –
Total 1,535,164$ 77,793$
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NOTE 9 – DEFINED BENEFIT PENSION PLANS – STATE-WIDE (CONTINUED)
A total of $176,114 reported as deferred outflows of resources related to pensions resulting from
city contributions subsequent to the measurement date will be recognized as a reduction of the net
pension liability in the year ending December 31, 2023. Other amounts reported as deferred
outflows and deferred inflows of resources related to pensions will be recognized in pension
expense as follows:
Pension
Year Ending Expense
December 31,Amount
2023 494,317$
2024 490,292$
2025 (164,618)$
2026 461,266$
2. PEPFF Pension Costs
At December 31, 2022, the City reported a liability of $11,692,763 for its proportionate share of
the PEPFF’s net pension liability. The net pension liability was measured as of June 30, 2022, and
the total pension liability used to calculate the net pension liability was determined by an actuarial
valuation as of that date. The City’s proportion of the net pension liability was based on the City’s
contributions received by the PERA during the measurement period for employer payroll paid dates
from July 1, 2021 through June 30, 2022, relative to the total employer contributions received from
all of the PERA’s participating employers. The City’s proportionate share was 0.2687 percent at
the end of the measurement period and 0.2550 percent for the beginning of the period.
The state of Minnesota contributed $18.0 million to the PEPFF in the plan fiscal year ended
June 30, 2022. The contribution consisted of $9.0 million in direct state aid that does meet the
definition of a special funding situation and $9.0 million in supplemental state aid that does not
meet the definition of a special funding situation. The $9.0 million direct state aid was paid on
October 1, 2021. Thereafter, by October 1 of each year, the state will pay $9.0 million to the PEPFF
until full funding is reached or July 1, 2048, whichever is earlier. The $9.0 million in supplemental
state aid will continue until the fund is 90.0 percent funded, or until the State Patrol Plan
(administered by the Minnesota State Retirement System) is 90.0 percent funded, whichever occurs
later.
The state of Minnesota is included as a nonemployer contributing entity in the Police and Fire
Retirement Plan Schedule of Employer Allocations and Schedule of Pension Amounts by
Employer, Current Reporting Period Only (pension allocation schedules) for the $9.0 million in
direct state aid. Police and Fire Plan employers need to recognize their proportionate share of the
state of Minnesota’s pension expense (and grant revenue) under GASB 68 special funding situation
accounting and financial reporting requirements. For the year ended December 31, 2022, the City
recognized pension expense of $734,211 for its proportionate share of the Police and Fire Plan’s
pension expense. The City recognized $99,105 as grant revenue for its proportionate share of the
state of Minnesota’s pension expense for the contribution of $9.0 million to the PEPFF.
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NOTE 9 – DEFINED BENEFIT PENSION PLANS – STATE-WIDE (CONTINUED)
The amount recognized by the City as its proportionate share of the net pension liability, the
direct aid, and total portion of the net pension liability that was associated with the City were as
follows:
City’s proportionate share of the net pension liability 11,692,763$
State’s proportionate share of the net pension liability
associated with the City 510,917$
The state of Minnesota is not included as a nonemployer contributing entity in the Police and Fire
Pension Plan pension allocation schedules for the $9.0 million in supplemental state aid. The City
recognized $24,183 for the year ended December 31, 2022 as revenue and an offsetting reduction
of net pension liability for its proportionate share of the state of Minnesota’s on -behalf
contributions to the PEPFF.
At December 31, 2022, the City reported its proportionate share of the PEPFF’s deferred outflows
of resources and deferred inflows of resources related to pensions from the following sources:
Deferred Deferred
Outflows Inflows
of Resources of Resources
Differences between expected and actual economic experience 707,927$ –$
Changes in actuarial assumptions 6,758,652 76,508
Net collective difference between projected and actual
investment earnings 347,216 –
Changes in proportion 147,483 366,903
Contributions paid to the PERA subsequent to the
measurement date 290,130 –
Total 8,251,408$ 443,411$
A total of $290,130 reported as deferred outflows of resources related to pensions resulting from
city contributions subsequent to the measurement date that will be recognized as a reduction of the
net pension liability in the year ending December 31, 2023. Other amounts reported as deferred
outflows and deferred inflows of resources related to pensions will be recognized in pension
expense as follows:
Pension
Year Ending Expense
December 31,Amount
2023 $ 1,475,525
2024 $ 1,459,795
2025 $ 1,275,011
2026 $ 2,317,049
2027 $ 990,487
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NOTE 9 – DEFINED BENEFIT PENSION PLANS – STATE-WIDE (CONTINUED)
E. Long-Term Expected Return on Investments
The Minnesota State Board of Investment, which manages the investments of the PERA, prepares an
analysis of the reasonableness on a regular basis of the long-term expected rate of return using a building
block method in which best-estimate ranges of expected future rates of return are developed for each major
asset class. These ranges are combined to produce an expected long-term rate of return by weighting the
expected future rates of return by the target asset allocation percentages. The target allocation and
best-estimates of geometric real rates of return for each major asset class are summarized in the following
table:
Asset Class
Domestic equity 33.50 %5.10 %
International equity 16.50 5.30 %
Fixed income 25.00 0.75 %
Private markets 25.00 5.90 %
Total 100.00 %
Allocation
Target
Real Rate of Return
Long-Term Expected
F. Actuarial Methods and Assumptions
The total pension liability in the June 30, 2022, actuarial valuation was determined using an individual
entry-age normal actuarial cost method. The long-term rate of return on pension plan investments used in
the determination of the total liability is 6.50 percent. This assumption is based on a review of inflation and
investments return assumptions from a number of national investment consulting firms. The review
provided a range of return investment return rates deemed to be reasonable by the actuary. An in vestment
return of 6.50 percent was deemed to be within that range of reasonableness for financial reporting purposes.
Inflation is assumed to be 2.25 percent for the General Employees Plan and 2.25 percent for the Police and
Fire Plan. Benefit increases after retirement are assumed to be 1.25 percent for the General Employees Plan.
The Police and Fire Plan benefit increase is fixed at 1.00 percent per year and that increase was used in the
valuation.
Salary growth assumptions in the General Employees Plan range in annual increments from 10.25 percent
after one year of service to 3.00 percent after 27 years of service. In the Police and Fire Plan, salary growth
assumptions range from 11.75 percent after one year of service to 3.00 percent after 24 years of service.
Mortality rates for the General Employees Plan are based on the Pub-2010 General Employee Mortality
Table. Mortality rates for the Police and Fire Plan are based on the Pub-2010 Public Safety Employee
Mortality tables. The tables are adjusted slightly to fit the PERA’s experience.
Actuarial assumptions for the General Employees Plan are reviewed every four years. The most recent
four-year experience study for the General Employees Plan was completed in 2019. The assumption
changes were adopted by the Board and became effective with the July 1, 2020 actuarial valuation. The
most recent four-year experience study for the Police and Fire Plan was completed in 2020, adopted by the
Board, and became effective with the July 1, 2021 actuarial valuation.
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NOTE 9 – DEFINED BENEFIT PENSION PLANS – STATE-WIDE (CONTINUED)
The following changes in actuarial assumptions occurred in 2022:
1. GERF
CHANGES IN ACTUARIAL ASSUMPTIONS
• The mortality improvement scale was changed from Scale MP-2020 to Scale MP-2021.
2. PEPFF
CHANGES IN ACTUARIAL ASSUMPTIONS
• The mortality improvement scale was changed from Scale MP-2020 to Scale MP-2021.
• The single discount rate changed from 6.50 percent to 5.40 percent.
G. Discount Rate
The discount rate for the General Employees Plan used to measure the total pension liability in 2022 was
6.50 percent. The projection of cash flows used to determine the discount rate assumed that contributions
from plan members and employers will be made at rates set in Minnesota Statutes. Based on these
assumptions, the fiduciary net position of the General Employees Fund was projected to be available to
make all projected future benefit payments of current plan members. Therefore, the long-term expected rate
of return on pension plan investments was applied to all periods of projected benefit payments to determine
the total pension liability.
In the Police and Fire Fund, the fiduciary net position was projected to be available to make all projected
future benefit payments of current plan members through June 30, 2060. Beginning in fiscal year ended
June 30, 2061, projected benefit payments exceed the fund’s projected fiduciary net position. Benefit
payments projected after were discounted at the municipal bond rate of 3.69 percent (based on the weekly
rate closest to, but not later than, the measurement date of the Fidelity “20-Year Municipal GO AA Index”).
The resulting equivalent single discount rate of 5.40 percent for the Police and Fire Fund was determine d
to give approximately the same present value of projected benefits when applied to all years of projected
benefits as the present value of projected benefits using 6.50 percent applied to all years of projected
benefits through the point of asset depletion and 3.69 percent thereafter.
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NOTE 9 – DEFINED BENEFIT PENSION PLANS – STATE-WIDE (CONTINUED)
H. Pension Liability Sensitivity
The following table presents the City’s proportionate share of the net pension liability for all plans it
participates in, calculated using the discount rate disclosed in the preceding paragraph, as well as what the
City’s proportionate share of the net pension liability would be if it were calculated using a discount rate
1 percentage point lower or 1 percentage point higher than the current discount rate:
GERF discount rate
City’s proportionate share of
the GERF net pension liability
PEPFF discount rate
City’s proportionate share of
the PEPFF net pension liability
2,676,119$
17,695,496$ 6,839,912$
8,056,509$
11,692,763$
5,100,502$
5.50% 6.50% 7.50%
4.40% 5.40% 6.40%
1% Decrease in
Discount Rate
1% Increase in
Discount Rate
Current
Discount Rate
I. Pension Plan Fiduciary Net Position
Detailed information about each pension plan’s fiduciary net position is available in a separately -issued
PERA financial report that includes financial statements and required supplementary information. That
report may be obtained on the internet at www.mnpera.org.
J. PERA Defined Benefit Pension Plan Totals
Total net pension liabilities, deferred outflows and inflows of resources, and pension expense reported for
PERA defined benefit pension plans as of and for the fiscal year ended December 31, 2022, are as follows:
Deferred Deferred
Net Pension Outflows of Inflows of Pension
PERA Pension Plan Liability Resources Resources Expense
GERF 5,100,502$ 1,535,164$ 77,793$ 761,687$
PEPFF 11,692,763 8,251,408 443,411 833,316
Total – all plans 16,793,265$ 9,786,572$ 521,204$ 1,595,003$
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NOTE 10 – DEFINED CONTRIBUTION PENSION PLAN
Councilmembers of the City are covered by the Public Employees Defined Contribution Plan (PEDCP), a
multiple-employer deferred compensation plan administered by the PERA. The PEDCP is a tax qualified
plan under Section 401(a) of the IRC, and all contributions by or on behalf of employees are tax deferred
until time of withdrawal.
Plan benefits depend solely on amounts contributed to the plan plus investment earnings, less administrative
expenses. Minnesota Statutes, Chapter 353D.03, specifies plan provisions, including the employee and
employer contribution rates for those qualified personnel who elect to participate. An eligible elected
official who decides to participate contributes 5.00 percent of their salary, which is matched by the elected
official’s employer. For ambulance service personnel, employer contributions are determined by the
employer, and for salaried employees, contributions must be a fixed percentage of salary. Employer
contributions for volunteer personnel may be a unit value for each call or period of alert duty. Employees
who are paid for their services may elect to make member contributions in an amount not to exceed the
employer share. Employer and employee contributions are combined and used to purchase shares in one or
more of the seven accounts of the Minnesota Supplemental Investment Fund. For administering the plan,
the PERA receives 2.00 percent of employer contributions and 25 hundredths of 1.00 percent (0.25 percent)
of the assets in each member’s account annually.
Total contributions made by the City during fiscal year 2022 were:
Required Rate
for Employees
Employee Employer Employee Employer and Employers
2,819$ 2,819$ 5.00%5.00%5.00%
Contribution Amount Percentage of Covered Payroll
NOTE 11 – OTHER POST-EMPLOYMENT BENEFITS (OPEB) PLAN
A. Plan Description
The City administers a single-employer defined benefit healthcare plan (“the Retiree Health Plan”). The
plan provides healthcare insurance for eligible retirees and their eligible dependents through the City’s
group health insurance plan, which covers both active and retired members. Benefit provisions are
discussed and proposed by an insurance committee made up of employees from all employee groups (both
represented and nonunion), with the final approval of the plan being given by the city manager. The benefit
levels, employee contributions, and employer contributions are governed by the City and can be amended
by the City. The Retiree Health Plan does not issue a publicly available financial report.
At December 31, 2020, the following employees were covered by the benefit terms:
Retirees and beneficiaries receiving benefits 3
Active plan members 91
Total members 94
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NOTE 11 – OTHER POST-EMPLOYMENT BENEFITS (OPEB) PLAN (CONTINUED)
B. Funding Policy
All retirees of the City have the option under state law to continue their medical insurance coverage through
the City from the time of retirement until the employee reaches the age of eligibility for Medicare. For
members of all employee groups, the retiree must pay the full premium to continue coverage for medical
insurance. The City is legally required to include any retirees for whom it provides health insurance
coverage in the same insurance pool as its active employees. Consequently, participating retirees are
considered to receive a secondary benefit know as an “implicit rate subsidy.” This benefit relates to the
assumption that the retiree is receiving a more favorable premium rate than they would otherwise be able
to obtain if purchasing insurance on their own, due to being included in the same pool with the City’s
younger and statistically healthier active employees.
Contribution requirements are set by the City annually on a pay-as-you-go basis. The City contributes none
of the cost of current year premiums for eligible retired plan members and their dependents, except for the
implicit rate subsidy described above. For fiscal year 2022, the City contributed $38,102 to the Retiree
Health Plan.
C. Actuarial Methods and Assumptions
The City’s total OPEB liability of $813,919 was measured as of December 31, 2022, and the total OPEB
liability used to calculate the total OPEB liability was determined by an actuarial valuation as of
December 31, 2020, using the entry-age normal cost method. Liability gains or losses and plan changes are
recognized immediately in accordance with GASB Statement No. 75 alternative measurement method
requirements. Consequently, there are no deferred outflows of resources or deferred inflows of resources
related to OPEB at year-end.
The total OPEB liability in the December 31, 2022 valuation was determined using the following actuarial
assumptions, applied to all periods included in the measurement, unless otherwise specified:
Discount rate 4.05%
Expected long-term investment return 4.05%
20-year municipal bond yield 4.05%
Inflation rate 2.50%
Healthcare cost trend rate 6.20% in 2022, grading to 3.90%
Withdrawal, mortality, and salary scale assumptions were based on those used to value pension liabilities
for Minnesota city employees participating in the PERA GERF and PEPFF plans. The PERA pension plans
base their assumptions on periodic experience studies as detailed earlier in these notes. Economic
assumptions are based on input from a variety of published sources of historical and projected future
financial data. Each assumption was reviewed for reasonableness with the source information , as well as
for consistency with the other economic assumptions.
Since the plan is not funded by an irrevocable trust, the discount rate is equal to the 20-year municipal bond
yield rate of 4.05 percent, which was set by considering published rate information for 20-year high quality,
tax-exempt, general obligation municipal bonds as of the measurement date. The discount rate used in the
prior measurement date was 2.06 percent.
Future retirees electing coverage is assumed to be 55 percent when a pre-age 65 subsidy is available, and
100 percent of all disabled in the line of duty members are assumed to elect coverage at retirement. Actual
spouse elections are used for current and future retirees. All retirees are assumed to become Medicare
eligible at age 65.
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NOTE 11 – OTHER POST-EMPLOYMENT BENEFITS (OPEB) PLAN (CONTINUED)
The following actuarial assumption changed since the previous valuation:
• The discount rate was changed from 2.06 percent to 4.05 percent.
D. Changes in the Total OPEB Liability
Total OPEB
Liability
Beginning balance – January 1, 2022 903,535$
Changes for the year
Service cost 75,450
Interest 19,774
Changes of assumptions (146,738)
Benefit payments (38,102)
Total net changes (89,616)
Ending balance – December 31, 2022 813,919$
E. Sensitivity of the Total OPEB Liability
The following presents the total OPEB liability of the City, as well as what the City’s total OPEB liability
would be if it were calculated using a discount rate that is 1 percentage point lower or 1 percentage point
higher than the current discount rate:
Discount rate
Total OPEB liability 884,438$ 749,537$
3.05% 5.05%
1% Decrease in 1% Increase in
Discount Rate Discount Rate
Current
Discount Rate
813,919$
4.05%
The following presents the total OPEB liability of the City, as well as what the City’s total OPEB liability
would be if it were calculated using a healthcare cost trend rate that is 1 percentage point lower or
1 percentage point higher than the current healthcare cost trend rate:
Healthcare cost trend rate
Total OPEB liability
7.20%, decreasing
to 4.90%
716,374$ 929,179$ 813,919$
1% Decrease in 1% Increase in
Trend Rate Trend Rate
Healthcare Cost
Trend Rate
Healthcare Cost Healthcare Cost
5.20%, decreasing
to 2.90%
6.20%, decreasing
to 3.90%
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NOTE 12 – JOINT POWERS AGREEMENT AND JOINTLY CONTROLLED ORGANIZATION
A. Joint Water Commission (JWC)
The City is a member of a joint powers agreement, together with the cities of Crystal and Golden Valley,
which established a JWC. The JWC was created in 1963 to provide for the creation and maintenance of a
joint water supply, storage, and distribution system through which water purchased from the City of
Minneapolis can be supplied to the population of the member cities.
Each member city is entitled to appoint one member to the JWC. Original construction costs were allocated
to the member cities based on percentages agreed upon in the joint powers agreement. All subsequent
operating and maintenance costs are apportioned to and paid by each member city on the basis of water
usage. Under the terms of the joint powers agreement, upon termination the accumulated assets of the JWC
shall be divided amongst the member cities in a manner to be determined and unanimously approved by
the member cities. Over the years, the costs of construction have been allocated among the member cities,
generally on the basis of water purchased. These costs were expensed as incurred by the City in the cost of
water purchased. The asset recorded in the Water Fund as an investment in the JWC for $168,509 represents
the original contributions for working capital; however, the City’s share of subsequent construction costs
is not determinable. Therefore, the City’s Water Fund has not recorded any subsequent amounts as an equity
investment or contributed capital related to the JWC.
The following financial information is from the JWC’s audited financial statements for the year ended
December 31, 2021, the most recent information available at the date of this report, which are available at
Golden Valley City Hall:
Total assets 20,370,794$
Total liabilities 940,445$
Net position 19,430,349$
Total revenue 9,851,904$
Total expenses 8,851,973$
Of the total revenues, $9,703,304 represented assessments paid by member cities. Of the total member
assessments, $3,307,039, or 34.08 percent, was paid by the City.
B. West Metro Fire-Rescue District
By a resolution dated August 25, 1997, the City Council approved entering into an agreement by which a
joint powers fire department would be established by merging the fire departments of New Hope and
Crystal. A joint and cooperative agreement created the joint powers fire department effective January 2,
1998, and operation began in July 1998, under the name West Metro Fire-Rescue District (the District).
The District is governed by a seven-member Board of Directors that includes one City Council member
from each city. As required by the agreement, the City transferred fire department equipment to the District,
while retaining its rights to these assets in the event of the District’s dissolution. The equipment had a net
book value of $374,558.
The following financial information is taken from the District’s audited financial statements for the year
ended December 31, 2022:
Total assets 6,501,284$
Total deferred outflows of resources 2,015,828$
Total liabilities 6,758,897$
Total deferred inflows of resources 29,265$
Net position 1,728,950$
Total revenue 3,160,521$
Total expenses 3,358,851$
-69-
NOTE 12 – JOINT POWERS AGREEMENT AND JOINTLY CONTROLLED ORGANIZATION
(CONTINUED)
The City’s equity interest and its share of the net income (loss) of the District are added to the value of the
“Investment in Joint Venture” in the government-wide financial statement under governmental activities.
As of December 31, 2022, the amount reported as investment in joint venture was $874,330.
According to a formula in the agreement, the City’s share of the District’s budget is 51.0 percent for 2022,
and city payments to the District totaled $1,418,222. The District’s financial statements are available at the
District office located at: 4251 Xylon Avenue North, New Hope, Minnesota 55428.
C. Shingle Creek Watershed Management Commission (SCWMC)
The City is one of nine member cities of the SCWMC, a joint powers organi zation formed to assist its
members’ preservation and use of natural water storage and retention systems. The City ’s contribution to
the SCWMC for its fiscal year ended December 31, 2022 was $30,144.
D. Pets Under Police Security (PUPS)
The City has entered into a joint and cooperative agreement with five other cities to create an organization,
which provides efficient and economical impoundment of animals in a jointly owned and operated facility.
The City incurred charges of $16,784 for these services in 2022.
E. Hennepin Recycling Group (HRG)
The City is party to a joint powers agreement with two other cities to create an organization to collect,
recycle, and dispose of solid waste in compliance with the Minnesota Waste Management Act. HRG
contracts for collection and recycling activities and the City is billed for services provided to its residents.
In 2022, total charges of $249,456 were incurred for these services.
F. Bassett Creek Watershed Management Commission (BCWMC)
The City is one of nine member cities of the BCWMC, a joint powers organization formed to assist its
members’ preservation and use of natural water storage and retention systems. Each member city is entitled
to appoint one representative to the BCWMC Board. The nine-member Board develops a budget for the
year each July 1. Each member city contributes funds to cover the budgeted costs of operations based half
on the assessed valuation of all taxable property, and half on the total area each member city has within the
boundaries of the watershed. Any capital costs incurred by the BCWMC are apportioned to the members
based half on the real property valuation of each member city within the watershed, and half on the total
area each member city has within the boundaries of the watershed. The City’s 2021 contribution to the
BCWMC for its fiscal year ended January 31, 2022 was $29,464, representing 5.3 percent of member’s
contributions for the year.
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NOTE 13 – COMMITMENTS, CONTINGENCIES, AND SUBSEQUENT EVENTS
A. Legal Claims
The City generally follows the practice of recording liabilities resulting from claims and legal actions only
when they become fixed or determinable in amount. Management does not anticipate any significant losses
that would not be covered by insurance.
B. Federal and State Receivables
Amounts recorded or receivable from federal and state agencies are subject to agency audit and adjustment.
Any disallowed claims, including amounts already collected, may constitute a liability of the applicable
funds. The amount, if any, of claims which may be disallowed by the grantor agencies cannot be determined
at this time, although the City expects such amounts, if any, to be immaterial.
C. Tax Increment Districts
The City’s tax increment districts are subject to review by the Office of the State Auditor. Any disallowed
claims or misuse of tax increments could become a liability of the applicable fund. Management has
indicated that it is not aware of any instances of noncompliance, which would have a material effect on the
financial statements.
D. Construction Commitments
At December 31, 2022, the City is committed to various construction contracts for the improvement of city
property. The City’s remaining commitment under these contracts is approximately $106,000 at year-end.
E. Conduit Debt Obligations
At times, the City has issued industrial revenue bonds to provide financial assistance to private sector
entities for the acquisition and construction of industrial and commercial facilities deemed to be in the
public interest. The bonds are secured by the property financed and are payable solely from payments
received on the underlying mortgage loans. Upon repayment of the bonds, ownership of the acquired
facilities transfers to the private sector entity served by the bond issuance. The City is not obligated in any
manner for repayment of the bonds. Accordingly, the bonds are not reported as liabilities in the
accompanying financial statements. As of December 31, 2022, there were five series of industrial revenue
bonds outstanding. The original issue amounts totaled $12,910,000 and have been reduced through annual
payments and partial call prepayments. The outstanding balance as of December 31, 2022 is undetermined.
F. New Accounting Standard
A new standard has been issued by the GASB that will result in significant changes in the reporting of
subscription-based information technology arrangements (SBITAs) once it becomes effective for
governmental entities. This standard will be adopted by the City beginning in 2023, and may require the
restatement of certain balances reported as of December 31, 2022. The effects of this change have not yet
been determined and are not reflected in these financial statements.
THIS PAGE INTENTIONALLY LEFT BLANK
REQUIRED SUPPLEMENTARY INFORMATION
CITY OF NEW HOPE, MINNESOTA
FOR THE YEAR ENDED
DECEMBER 31, 2022
Proportionate
Share of the
City’s Net Pension
Proportionate Liability and City’s
Share of the the City’s Proportionate Plan Fiduciary
State of Share of the Share of the Net Position
City’s City’s Minnesota’s State of Net Pension as a
PERA Fiscal Proportion Proportionate Proportionate Minnesota’s Liability as a Percentage
Year-End Date of the Net Share of the Share of the Share of the City’s Percentage of of the Total
(Measurement Pension Net Pension Net Pension Net Pension Covered Covered Pension
Date)Liability Liability Liability Liability Payroll Payroll Liability
06/30/2015 0.0617% 3,197,614$ –$ 3,197,614$ 3,627,658$ 88.15% 78.20%
06/30/2016 0.0608% 4,936,658$ 64,481$ 5,001,139$ 3,643,308$ 135.50% 68.90%
06/30/2017 0.0588% 3,753,753$ 47,225$ 3,800,978$ 3,931,388$ 95.48% 75.90%
06/30/2018 0.0599% 3,323,006$ 109,063$ 3,432,069$ 3,998,415$ 83.11% 79.50%
06/30/2019 0.0609% 3,367,025$ 104,662$ 3,471,687$ 4,282,511$ 78.62% 80.20%
06/30/2020 0.0626% 3,753,156$ 115,680$ 3,868,836$ 4,463,850$ 84.08% 79.10%
06/30/2021 0.0645% 2,754,439$ 84,153$ 2,838,592$ 4,646,514$ 59.28% 87.00%
06/30/2022 0.0644% 5,100,502$ 149,558$ 5,250,060$ 4,808,376$ 106.08% 76.70%
Contributions Contributions
in Relation to as a
Statutorily the Statutorily Contribution Percentage
Required Required Deficiency Covered of Covered
Contributions Contributions (Excess)Payroll Payroll
284,367$ 284,367$ –$ 3,791,560$ 7.50%
280,102$ 280,102$ –$ 3,734,693$ 7.50%
286,170$ 286,170$ –$ 3,815,600$ 7.50%
310,638$ 310,638$ –$ 4,141,835$ 7.50%
328,429$ 328,429$ –$ 4,379,059$ 7.50%
344,227$ 344,227$ –$ 4,589,689$ 7.50%
352,307$ 352,307$ –$ 4,697,399$ 7.50%
360,677$ 360,677$ –$ 4,809,002$ 7.50%
Note:
CITY OF NEW HOPE
PERA – General Employees Retirement Fund
Schedule of City’s and Nonemployer Proportionate Share of Net Pension Liability
Year Ended December 31, 2022
Year Ended December 31, 2022
PERA – General Employees Retirement Fund
Schedule of City Contributions
City Fiscal
Year-End Date
12/31/2015
12/31/2016
12/31/2017
12/31/2022
City Fiscal
12/31/2018
12/31/2016
12/31/2017
The City implemented GASB Statement No.68 in fiscal 2015 (using a June 30,2015 measurement date).This schedule is intended to present
10-year trend information. Additional years will be added as they become available.
12/31/2018
12/31/2020
12/31/2020
12/31/2019
12/31/2019
Year-End Date
12/31/2015
12/31/2021
12/31/2021
12/31/2022
-71-
Proportionate
Share of the
City’s Net Pension
Proportionate Liability and City’s
Share of the the City’s Proportionate Plan Fiduciary
State of Share of the Share of the Net Position
City’s City’s Minnesota’s State of Net Pension as a
PERA Fiscal Proportion Proportionate Proportionate Minnesota’s Liability as a Percentage
Year-End Date of the Net Share of the Share of the Share of the City’s Percentage of of the Total
(Measurement Pension Net Pension Net Pension Net Pension Covered Covered Pension
Date)Liability Liability Liability Liability Payroll Payroll Liability
06/30/2015 0.2820% 3,204,180$ –$ 3,204,180$ 2,579,768$ 124.20% 86.60%
06/30/2016 0.2940% 11,798,732$ –$ 11,798,732$ 2,732,301$ 431.82% 63.90%
06/30/2017 0.2820% 3,807,336$ –$ 3,807,336$ 2,992,514$ 127.23% 85.40%
06/30/2018 0.2888% 3,078,311$ –$ 3,078,311$ 3,043,700$ 101.14% 88.80%
06/30/2019 0.3012% 3,206,578$ –$ 3,206,578$ 3,176,028$ 100.96% 89.30%
06/30/2020 0.2899% 3,821,192$ 90,012$ 3,911,204$ 3,271,692$ 116.80% 87.20%
06/30/2021 0.2550% 1,968,330$ 88,503$ 2,056,833$ 3,014,250$ 65.30% 93.70%
06/30/2022 0.2687% 11,692,763$ 510,917$ 12,203,680$ 3,264,285$ 358.20% 70.50%
Contributions Contributions
in Relation to as a
Statutorily the Statutorily Contribution Percentage
Required Required Deficiency Covered of Covered
Contributions Contributions (Excess)Payroll Payroll
448,029$ 448,029$ –$ 2,765,611$ 16.20%
444,511$ 444,511$ –$ 2,743,893$ 16.20%
489,202$ 489,202$ –$ 3,019,768$ 16.20%
502,203$ 502,203$ –$ 3,100,017$ 16.20%
550,665$ 550,665$ –$ 3,248,759$ 16.95%
550,681$ 550,681$ –$ 3,111,189$ 17.70%
552,048$ 552,048$ –$ 3,118,916$ 17.70%
588,118$ 588,118$ –$ 3,322,513$ 17.70%
Note:
CITY OF NEW HOPE
PERA – Public Employees Police and Fire Fund
Schedule of City’s and Nonemployer Proportionate Share of Net Pension Liability
Year Ended December 31, 2022
12/31/2021
12/31/2017
12/31/2019
12/31/2018
12/31/2018
12/31/2019
12/31/2020
12/31/2022
12/31/2022
12/31/2021
12/31/2020
The City implemented GASB Statement No.68 in fiscal 2015 (using a June 30,2015 measurement date).This schedule is intended to present
10-year trend information. Additional years will be added as they become available.
City Fiscal
Year-End Date
12/31/2015
12/31/2016
12/31/2017
City Fiscal
Year-End Date
12/31/2015
12/31/2016
Year Ended December 31, 2022
Schedule of City Contributions
PERA – Public Employees Police and Fire Fund
-72-
2018 2019 2020 2021 2022
Total OPEB liability
Service cost 64,269$ 72,745$ 89,655$ 102,913$ 75,450$
Interest 31,335 38,452 33,026 29,424 19,774
Differences between expected
and actual experience – 81,871 27 (479,230) –
Changes in assumptions (53,393) 74,709 71,306 (20,704) (146,738)
Benefit payments (25,947) (16,942) (22,038) (27,550) (38,102)
Net change in total OPEB liability 16,264 250,835 171,976 (395,147) (89,616)
Total OPEB liability – beginning of year 859,607 875,871 1,126,706 1,298,682 903,535
Total OPEB liability – end of year 875,871$ 1,126,706$ 1,298,682$ 903,535$ 813,919$
Covered-employee payroll 6,400,000$ 7,100,000$ 7,400,000$ 9,400,000$ 8,900,000$
Total OPEB liability as a
percentage of covered-employee payroll 13.69%15.87%17.55%9.61%9.15%
Note 1:
Note 2:
Year Ended December 31, 2022
Schedule of Changes in the City’s Total
Other Post-Employment Benefits Plan
CITY OF NEW HOPE
There are no plan assets accumulated in a trust that meets the criteria in paragraph 4 of GASB Statement No.75 to
pay these benefits.
OPEB Liability and Related Ratios
The City implemented GASB Statement No.75 in fiscal 2018.This schedule is intended to present 10-year trend
information. Additional years will be added as they become available.
Fiscal Year Ended December 31,
-73-
CITY OF NEW HOPE
Notes to Required Supplementary Information
December 31, 2022
-74-
PERA – GENERAL EMPLOYEES RETIREMENT FUND
2022 CHANGES IN ACTUARIAL ASSUMPTIONS
• The mortality improvement scale was changed from Scale MP-2020 to Scale MP-2021.
2021 CHANGES IN ACTUARIAL ASSUMPTIONS
• The investment return and single discount rates were changed from 7.50 percent to
6.50 percent, for financial reporting purposes.
• The mortality improvement scale was changed from Scale MP-2019 to Scale MP-2020.
2020 CHANGES IN ACTUARIAL ASSUMPTIONS
• The price inflation assumption was decreased from 2.50 percent to 2.25 percent.
• The payroll growth assumption was decreased from 3.25 percent to 3.00 percent.
• Assumed salary increase rates were changed as recommended in the June 30, 2019 experience
study. The net effect is assumed rates that average 0.25 percent less than previous rates.
• Assumed rates of retirement were changed as recommended in the June 30, 2019 experience
study. The changes result in more unreduced (normal) retirements and slightly fewer Rule of 90
and early retirements.
• Assumed rates of termination were changed as recommended in the June 30, 2019 experience
study. The new rates are based on service and are generally lower than the previous rates for
years two through five, and slightly higher thereafter.
• Assumed rates of disability were changed as recommended in the June 30, 2019 experience
study. The change results in fewer predicted disability retirements for males and females.
• The base mortality table for healthy annuitants and employees was changed from the RP-2014
Table to the Pub-2010 General Mortality Table, with adjustments. The base mortality table for
disabled annuitants was changed from the RP-2014 Disabled Annuitant Mortality Table to the
Pub-2010 General/Teacher Disabled Annuitant Mortality Table, with adjustments.
• The mortality improvement scale was changed from MP-2018 to MP-2019.
• The assumed spouse age difference was changed from two years older for females to one year
older.
• The assumed number of married male new retirees electing the 100.00 percent joint and
survivor option changed from 35.00 percent to 45.00 percent. The assumed number of married
female new retirees electing the 100.00 percent joint and survivor option changed from
15.00 percent to 30.00 percent. The corresponding number of married new retirees electing the
life annuity option was adjusted accordingly.
2020 CHANGES IN PLAN PROVISIONS
• Augmentation for current privatized members was reduced to 2.00 percent for the period
July 1, 2020 through December 31, 2023, and zero percent thereafter. Augmentation was
eliminated for privatizations occurring after June 30, 2020.
CITY OF NEW HOPE
Notes to Required Supplementary Information (continued)
December 31, 2022
-75-
PERA – GENERAL EMPLOYEES RETIREMENT FUND (CONTINUED)
2019 CHANGES IN ACTUARIAL ASSUMPTIONS
• The mortality projection scale was changed from MP-2017 to MP-2018.
2019 CHANGES IN PLAN PROVISIONS
• The employer supplemental contribution was changed prospectively, decreasing from
$31.0 million to $21.0 million per year. The state’s special funding contribution was changed
prospectively, requiring $16.0 million due per year through 2031.
2018 CHANGES IN ACTUARIAL ASSUMPTIONS
• The mortality projection scale was changed from MP-2015 to MP-2017.
• The assumed benefit increase was changed from 1.00 percent per year through 2044, and
2.50 percent per year thereafter, to 1.25 percent per year.
2018 CHANGES IN PLAN PROVISIONS
• The augmentation adjustment in early retirement factors is eliminated over a five-year period
starting July 1, 2019, resulting in actuarial equivalence after June 30, 2024.
• Interest credited on member contributions decreased from 4.00 percent to 3.00 percent,
beginning July 1, 2018.
• Deferred augmentation was changed to zero percent, effective January 1, 2019. Augmentation
that has already accrued for deferred members will still apply.
• Contribution stabilizer provisions were repealed.
• Post-retirement benefit increases were changed from 1.00 percent per year with a provision to
increase to 2.50 percent upon attainment of 90.00 percent funding ratio to 50.00 percent of the
Social Security Cost of Living Adjustment, not less than 1.00 percent and not more than
1.50 percent, beginning January 1, 2019.
• For retirements on or after January 1, 2024, the first benefit increase is delayed until the retiree
reaches normal retirement age; does not apply to Rule of 90 retirees, disability benefit
recipients, or survivors.
• Actuarial equivalent factors were updated to reflect revised mortality and interest assumptions.
CITY OF NEW HOPE
Notes to Required Supplementary Information (continued)
December 31, 2022
-76-
PERA – GENERAL EMPLOYEES RETIREMENT FUND (CONTINUED)
2017 CHANGES IN ACTUARIAL ASSUMPTIONS
• The Combined Service Annuity (CSA) loads were changed from 0.80 percent for active
members and 60.00 percent for vested and nonvested deferred members. The revised CSA
loads are now zero percent for active member liability, 15.00 percent for vested deferred
member liability, and 3.00 percent for nonvested deferred member liability.
• The assumed post-retirement benefit increase rate was changed from 1.00 percent per year for
all years, to 1.00 percent per year through 2044, and 2.50 percent per year thereafter.
2017 CHANGES IN PLAN PROVISIONS
• The state’s contribution for the Minneapolis Employees Retirement Fund equals $16.0 million
in 2017 and 2018, and $6.0 million thereafter.
• The Employer Supplemental Contribution for the Minneapolis Employees Retirement Fund
changed from $21.0 million to $31.0 million in calendar years 2019 to 2031. The state’s
contribution changed from $16.0 million to $6.0 million in calendar years 2019 to 2031.
2016 CHANGES IN ACTUARIAL ASSUMPTIONS
• The assumed post-retirement benefit increase rate was changed from 1.00 percent per year
through 2035, and 2.50 percent per year thereafter, to 1.00 percent per year for all years.
• The assumed investment return was changed from 7.90 percent to 7.50 percent. The single
discount rate changed from 7.90 percent to 7.50 percent.
• Other assumptions were changed pursuant to the experience study June 30, 2015. The assumed
future salary increases, payroll growth, and inflation were decreased by 0.25 percent to
3.25 percent for payroll growth, and 2.50 percent for inflation.
2015 CHANGES IN ACTUARIAL ASSUMPTIONS
• The assumed post-retirement benefit increase rate was changed from 1.00 percent per year
through 2030, and 2.50 percent per year thereafter, to 1.00 percent per year through 2035, and
2.50 percent per year thereafter.
2015 CHANGES IN PLAN PROVISIONS
• On January 1, 2015, the Minneapolis Employees Retirement Fund was merged into the General
Employees Fund, which increased the total pension liability by $1.1 billion and increased the
fiduciary plan net position by $892.0 million. Upon consolidation, state and employer
contributions were revised; the state’s contribution of $6.0 million, which meets the special
funding situation definition, was due September 2015.
CITY OF NEW HOPE
Notes to Required Supplementary Information (continued)
December 31, 2022
-77-
PERA – PUBLIC EMPLOYEES POLICE AND FIRE FUND
2022 CHANGES IN ACTUARIAL ASSUMPTIONS
• The mortality improvement scale was changed from Scale MP-2020 to Scale MP-2021.
• This single discount rate changed from 6.50 percent to 5.40 percent.
2021 CHANGES IN ACTUARIAL ASSUMPTIONS
• The investment return and single discount rates were changed from 7.50 percent to
6.50 percent, for financial reporting purposes.
• The inflation assumption was changed from 2.50 percent to 2.25 percent.
• The payroll growth assumption was changed from 3.25 percent to 3.00 percent.
• The base mortality table for healthy annuitants and employees was changed from the RP-2014
Table to the Pub-2010 Public Safety Mortality Table. The mortality improvement scale was
changed from MP-2019 to MP-2020.
• The base mortality table for disabled annuitants was changed from the RP-2014 Healthy
Annuitant Mortality Table (with future mortality improvement according to Scale MP-2019)
to the Pub-2010 Public Safety Disabled Annuitant Mortality Table (with future mortality
improvement according to Scale MP-2020).
• Assumed rates of salary increase were modified as recommended in the July 14, 2020
experience study. The overall impact is a decrease in gross salary increase rates.
• Assumed rates of retirement were changed as recommended in the July 14, 2020 experience
study. The changes result in slightly more unreduced retirements and fewer assumed early
retirements.
• Assumed rates of withdrawal were changed from select and ultimate rates to service -based
rates. The changes result in more assumed terminations.
• Assumed rates of disability were increased for ages 25–44 and decreased for ages over 49.
Overall, proposed rates result in more projected disabilities.
• Assumed percent married for active female members was changed from 60 percent to
70 percent. Minor changes to form of payment assumptions were applied.
2020 CHANGES IN ACTUARIAL ASSUMPTIONS
• The mortality projection scale was changed from MP-2018 to MP-2019.
2019 CHANGES IN ACTUARIAL ASSUMPTIONS
• The mortality projection scale was changed from MP-2017 to MP-2018.
CITY OF NEW HOPE
Notes to Required Supplementary Information (continued)
December 31, 2022
-78-
PERA – PUBLIC EMPLOYEES POLICE AND FIRE FUND (CONTINUED)
2018 CHANGES IN ACTUARIAL ASSUMPTIONS
• The mortality projection scale was changed from MP-2016 to MP-2017.
2018 CHANGES IN PLAN PROVISIONS
• Post-retirement benefit increases were changed to 1.00 percent for all years, with no trigger.
• An end date of July 1, 2048 was added to the existing $9.0 million state contribution.
• New annual state aid will equal $4.5 million in fiscal years 2019 and 2020, and $9.0 million
thereafter, until the plan reaches 100.00 percent funding, or July 1, 2048, if earlier.
• Member contributions were changed from 10.80 percent to 11.30 percent of pay, effective
January 1, 2019, and 11.80 percent of pay, effective January 1, 2020.
• Employer contributions were changed from 16.20 percent to 16.95 percent of pay, effective
January 1, 2019, and 17.70 percent of pay, effective January 1, 2020.
• Interest credited on member contributions decreased from 4.00 percent to 3.00 percent,
beginning July 1, 2018.
• Deferred augmentation was changed to zero percent, effective January 1, 2019. Augmentation
that has already accrued for deferred members will still apply.
• Actuarial equivalent factors were updated to reflect revised mortality and interest assumptions.
2017 CHANGES IN ACTUARIAL ASSUMPTIONS
• Assumed salary increases were changed as recommended in the June 30, 2016 experience
study. The net effect is proposed rates that average 0.34 percent lower than the previous rates.
• Assumed rates of retirement were changed, resulting in fewer retirements.
• The CSA load was 30.00 percent for vested and nonvested deferred members. The CSA has
been changed to 33.00 percent for vested members, and 2.00 percent for nonvested members.
• The base mortality table for healthy annuitants was changed from the RP-2000 Fully
Generational Table to the RP-2014 Fully Generational Table (with a base year of 2006), with
male rates adjusted by a factor of 0.96. The mortality improvement scale was changed from
Scale AA to Scale MP-2016. The base mortality table for disabled annuitants was changed
from the RP-2000 Disabled Mortality Table to the mortality tables assumed for healthy retirees.
• Assumed termination rates were decreased to 3.00 percent for the first three years of service.
Rates beyond the select period of three years were adjusted, resultin g in more expected
terminations overall.
• Assumed percentage of married female members was decreased from 65.00 percent to
60.00 percent.
• Assumed age difference was changed from separate assumptions for male members (wives
assumed to be three years younger) and female members (husbands assumed to be four years
older) to the assumption that males are two years older than females.
• The assumed percentage of female members electing joint and survivor annuities was
increased.
• The assumed post-retirement benefit increase rate was changed from 1.00 percent for all years,
to 1.00 percent per year through 2064, and 2.50 percent thereafter.
• The single discount rate was changed from 5.60 percent per annum to 7.50 percent per annum.
CITY OF NEW HOPE
Notes to Required Supplementary Information (continued)
December 31, 2022
-79-
PERA – PUBLIC EMPLOYEES POLICE AND FIRE FUND (CONTINUED)
2016 CHANGES IN ACTUARIAL ASSUMPTIONS
• The assumed post-retirement benefit increase rate was changed from 1.00 percent per year
through 2037, and 2.50 percent per year thereafter, to 1.00 percent per year for all future years.
• The assumed investment return was changed from 7.90 percent to 7.50 percent.
• The single discount rate changed from 7.90 percent to 5.60 percent.
• The assumed future salary increases, payroll growth, and inflation were decreased by
0.25 percent to 3.25 percent for payroll growth, and 2.50 percent for inflation.
2015 CHANGES IN ACTUARIAL ASSUMPTIONS
• The assumed post-retirement benefit increase rate was changed from 1.00 percent per year
through 2030, and 2.50 percent per year thereafter, to 1.00 percent per year through 2037, and
2.50 percent per year thereafter.
2015 CHANGES IN PLAN PROVISIONS
• The post-retirement benefit increase to be paid after attainment of the 90.00 percent funding
threshold was changed from inflation up to 2.50 percent, to a fixed rate of 2.50 percent.
OTHER POST-EMPLOYMENT BENEFITS PLAN
2022 CHANGES IN ACTUARIAL ASSUMPTIONS
• The discount rate was changed from 2.06 percent to 4.05 percent.
2021 CHANGES IN ACTUARIAL ASSUMPTIONS
• The discount rate was changed from 2.12 percent to 2.06 percent.
• Healthcare cost trend rates and per capita medical claims were updated based on published
trend models and recent experience to better reflect future anticipated experience.
• Withdrawal, mortality, and salary scale assumptions were updated to those used in the most
recently published PERA, GERF, and PEPFF valuations.
2020 CHANGES IN ACTUARIAL ASSUMPTIONS
• The discount rate was changed from 2.74 percent to 2.12 percent.
• The payroll growth rate was changed from 3.50 percent to 3.25 percent.
2019 CHANGES IN ACTUARIAL ASSUMPTIONS
• The discount rate was changed from 4.09 percent to 2.74 percent.
2018 CHANGES IN ACTUARIAL ASSUMPTIONS
• The discount rate was changed from 3.44 percent to 4.09 percent.
SUPPLEMENTARY INFORMATION
CITY OF NEW HOPE, MINNESOTA
FOR THE YEAR ENDED
DECEMBER 31, 2022
Nonmajor Governmental Funds
Total
Nonmajor
Special Capital Debt Governmental
Revenue Projects Service Funds
Assets
Cash and temporary investments 375,569$ 7,167,349$ 3,323,035$ 10,865,953$
Receivables
Accounts 26,478 – – 26,478
Loans 67,711 – – 67,711
Special assessments 6,591 43,269 – 49,860
Due from other funds – 75,000 – 75,000
Advances to other funds – 875,000 – 875,000
Total assets 476,349$ 8,160,618$ 3,323,035$ 11,960,002$
Liabilities
Accounts and contracts payable 10,556$ 261,880$ –$ 272,436$
Due to other governments 20,788 – – 20,788
Total liabilities 31,344 261,880 – 293,224
Deferred inflows of resources
Unavailable revenue – special assessments – 43,269 – 43,269
Fund balances
Restricted for
Public safety police expenditures 128,930 – – 128,930
Ice arena 5,236 – – 5,236
Capital improvements – 515,997 – 515,997
Debt service – – 3,323,035 3,323,035
Committed for
Solid waste operations 218,782 – – 218,782
Economic development 92,057 – – 92,057
Assigned for
City Hall improvements – 533,245 – 533,245
Public works facility improvements – 3,571,542 – 3,571,542
General improvements – 2,451,214 – 2,451,214
Capital equipment – 783,471 – 783,471
Total fund balances 445,005 7,855,469 3,323,035 11,623,509
Total liabilities, deferred inflows of
resources, and fund balances 476,349$ 8,160,618$ 3,323,035$ 11,960,002$
December 31, 2022
Combining Balance Sheet
CITY OF NEW HOPE
-80-
Total
Nonmajor
Special Capital Debt Governmental
Revenue Projects Service Funds
Revenues
Taxes
Property taxes –$ –$ 3,744,984$ 3,744,984$
Intergovernmental – 1,142,382 – 1,142,382
Charges for services 253,634 – – 253,634
Special assessments – 7,971 – 7,971
Investment earnings (charges)(12,987) (232,017) (38,734) (283,738)
Miscellaneous 526 – – 526
Total revenues 241,173 918,336 3,706,250 4,865,759
Expenditures
Current
Public works 250,420 – – 250,420
Economic development 7,000 – – 7,000
Capital outlay
General government – 32,202 – 32,202
Public works – 779,610 – 779,610
Culture and recreation – 74,058 – 74,058
Debt service
Principal – – 2,196,124 2,196,124
Interest – – 1,280,716 1,280,716
Total expenditures 257,420 885,870 3,476,840 4,620,130
Excess (deficiency) of
revenues over expenditures (16,247) 32,466 229,410 245,629
Other financing sources (uses)
Transfers in 12,844 1,584,046 – 1,596,890
Transfers (out)– (741,664) – (741,664)
Total other financing
sources (uses)12,844 842,382 – 855,226
Net change in fund balances (3,403) 874,848 229,410 1,100,855
Fund balances, January 1 448,408 6,980,621 3,093,625 10,522,654
Fund balances, December 31 445,005$ 7,855,469$ 3,323,035$ 11,623,509$
CITY OF NEW HOPE
Nonmajor Governmental Funds
Combining Statement of Revenues, Expenditures, and Changes in Fund Balances
For the Year Ended December 31, 2022
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NONMAJOR SPECIAL REVENUE FUNDS
Police Forfeitures Fund – This fund accounts for revenue received mainly from police fines and
forfeitures, and is used for special police, fire, and parks/recreation projects.
Solid Waste Management Fund – This fund accounts for grants and fees to be used to cover the cost of
operations of the City’s solid waste management program.
Ice Arena Endowment Fund – This fund is used to account for contributions and other receipts to be used
for future capital needs and budget requirements of the New Hope Ice Arena.
CEE Revolving Loan Fund – This fund is used to account for Center for Energy and Environment
revolving loans.
CITY OF NEW HOPE
Nonmajor Special Revenue Funds
Subcombining Balance Sheet
December 31, 2022
9021 9016 9017 9018
Police Solid Waste Ice Arena CEE Revolving
Forfeitures Management Endowment Loan Fund Total
Assets
Cash and temporary investments 128,930$ 206,448$ 5,236$ 34,955$ 375,569$
Receivables
Accounts – 26,772 – (294) 26,478
Loans – – – 67,711 67,711
Special assessments – 6,591 – – 6,591
Total assets 128,930$ 239,811$ 5,236$ 102,372$ 476,349$
Liabilities
Accounts and contracts payable –$ 241$ –$ 10,315$ 10,556$
Due to other governments – 20,788 – – 20,788
Total liabilities – 21,029 – 10,315 31,344
Fund balances
Restricted for
Public safety police expenditures 128,930$ –$ –$ –$ 128,930$
Ice arena – – 5,236 – 5,236
Committed for
Solid waste operations – 218,782 – – 218,782
Economic development – – – 92,057 92,057
Total fund balances 128,930 218,782 5,236 92,057 445,005
Total liabilities and fund balances 128,930$ 239,811$ 5,236$ 102,372$ 476,349$
-82-
CITY OF NEW HOPE
Nonmajor Special Revenue Funds
Subcombining Statement of Revenues, Expenditures, and Changes in Fund Balances
For the Year Ended December 31, 2022
9021 9016 9017 9018
Police Solid Waste Ice Arena CEE Revolving
Forfeitures Management Endowment Loan Fund Total
Revenues
Charges for services –$ 253,634$ –$ –$ 253,634$
Investment earnings (charges)(5,525) (7,874) (224) 636 (12,987)
Investment earnings (charges)Miscellaneous – – – 526 526
Total revenues (5,525) 245,760 (224) 1,162 241,173
Expenditures
Current
Public works
Other services and charges – 250,420 – – 250,420
Economic development
Other services and charges – – – 7,000 7,000
Total expenditures – 250,420 – 7,000 257,420
Excess (deficiency) of
revenues over expenditures (5,525) (4,660) (224) (5,838) (16,247)
Other financing sources
Transfers in – – – 12,844 12,844
Net change in fund balances (5,525) (4,660) (224) 7,006 (3,403)
Fund balances, January 1 134,455 223,442 5,460 85,051 448,408
Fund balances, December 31 128,930$ 218,782$ 5,236$ 92,057$ 445,005$
-83-
Original and Actual Over (Under)
Final Budget Amounts Budget
Revenues
Charges for services 250,000$ 253,634$ 3,634$
Investment earnings (charges) 1,500 (7,874) (9,374)
Total revenues 251,500 245,760 (5,740)
Expenditures
Current
Public works
Other services and charges 248,578 250,420 1,842
Net change in fund balances 2,922 (4,660) (7,582)
Fund balances, January 1 223,442 223,442 –
Fund balances, December 31 226,364$ 218,782$ (7,582)$
For the Year Ended December 31, 2022
Budget and Actual
Schedule of Revenues, Expenditures, and Changes in Fund Balances –
CITY OF NEW HOPE
Special Revenue Fund – Solid Waste Management Fund
-84-
NONMAJOR CAPITAL PROJECTS FUNDS
Capital Projects Funds account for proceeds from the sale of bonds and other revenue to be used for the
purchase or construction of equipment and capital improvement facilities.
Fire Capital Projects Fund – This fund accounts for the purchases of fire capital equipment.
City Hall CIP Fund – This fund is used to account for the accumulation of resources for City Hall
improvement projects.
Park/Pool Improvement Project Fund – This fund is used to account for improvements to the City’s pool
and water park facility.
Public Works Facility CIP Fund – This fund is used to account for improvements to the City’s public
works facility.
Temporary Financing Fund – is used to account for various capital project and capital outlay purchases
until permanent financing is acquired.
9010 9202 9234 9240
Park/Pool Public Works
Fire City Hall Improvement Facility
Capital Projects CIP Project CIP
Assets
Cash and temporary investments 783,471$ 672,902$ 516,046$ 3,693,716$
Receivables
Special assessments – – – –
Due from other funds – – – –
Advances to other funds – – – –
Total assets 783,471$ 672,902$ 516,046$ 3,693,716$
Liabilities
Accounts and contracts payable –$ 139,657$ 49$ 122,174$
Deferred inflows of resources
Unavailable revenue – special assessments – – – –
Fund balances
Restricted for
Capital improvements – – 515,997 –
Assigned for
City Hall improvements – 533,245 – –
Public works facility improvements – – – 3,571,542
General improvements – – – –
Capital equipment 783,471 – – –
Total fund balances 783,471 533,245 515,997 3,571,542
Total liabilities, deferred inflows
of resources, and fund balances 783,471$ 672,902$ 516,046$ 3,693,716$
Subcombining Balance Sheet
Nonmajor Capital Projects Funds
CITY OF NEW HOPE
December 31, 2022
-85-
9242
Temporary
Financing Total
1,501,214$ 7,167,349$
43,269 43,269
75,000 75,000
875,000 875,000
2,494,483$ 8,160,618$
–$ 261,880$
43,269 43,269
– 515,997
– 533,245
– 3,571,542
2,451,214 2,451,214
– 783,471
2,451,214 7,855,469
2,494,483$ 8,160,618$
-86-
9010 9202 9234 9240
Park/Pool Public Works
Fire City Hall Improvement Facility
Capital Projects CIP Project CIP
Revenues
Intergovernmental
Federal –$ –$ –$ 1,142,382$
Special assessments – – – –
Investment earnings (charges)(33,573) (29,826) (333) (115,278)
Total revenues (33,573) (29,826) (333) 1,027,104
Expenditures
Capital outlay
General government – 32,202 – –
Public works – – – 779,610
Culture and recreation – – 74,058 –
Total expenditures – 32,202 74,058 779,610
Excess (deficiency) of
revenues over expenditures (33,573) (62,028) (74,391) 247,494
Other financing sources (uses)
Transfers in – – – 1,584,046
Transfers (out)– – – –
Total other financing
sources (uses)– – – 1,584,046
Net change in fund balances (33,573) (62,028) (74,391) 1,831,540
Fund balances, January 1 817,044 595,273 590,388 1,740,002
Fund balances, December 31 783,471$ 533,245$ 515,997$ 3,571,542$
CITY OF NEW HOPE
Nonmajor Capital Projects Funds
Subcombining Statement of Revenues, Expenditures, and Changes in Fund Balances
For the Year Ended December 31, 2022
-87-
9242
Temporary
Financing Total
–$ 1,142,382$
7,971 7,971
(53,007) (232,017)
(45,036) 918,336
– 32,202
– 779,610
– 74,058
– 885,870
(45,036) 32,466
– 1,584,046
(741,664) (741,664)
(741,664) 842,382
(786,700) 874,848
3,237,914 6,980,621
2,451,214$ 7,855,469$
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NONMAJOR DEBT SERVICE FUNDS
The Debt Service Funds are used to account for the payment of principal and interest on the City’s general
obligation bonds. Revenues for this purpose include ad valorem property taxes, special assessments,
investment income, and other revenue.
2015A G.O. Tax Increment Bonds – This fund accounts for revenue from property taxes and interest
income to be used for the payment of principal and interest on the City’s 2015A G.O. Tax Increment Bonds.
2016A G.O. Improvement Bonds – This fund accounts for revenue from property taxes and interest
income to be used for the payment of principal and interest on the City’s 2016A G.O. Improvement Bonds.
2015B G.O. Improvement Bonds – This fund accounts for revenue from property taxes and interest
income to be used for the payment of principal and interest on the City’s 2015B G.O. Improvement Bonds.
2017A G.O. Improvement Bonds – This fund accounts for revenue from property taxes and interest
income to be used for the payment of principal and interest on the City’s 2017A G.O. Improvement Bonds.
2018A G.O. Improvement Bonds – This fund accounts for revenue from property taxes and interest
income to be used for the payment of principal and interest on the City’s 2018A G.O. Improvement Bonds.
2019A G.O. Improvement Bonds – This fund accounts for revenue from property taxes and interest
income to be used for the payment of principal and interest on the City’s 2019A G.O. Improvement Bonds.
9144 9148 9149 9150
2015A 2016A 2015B 2017A
G.O.G.O.G.O.G.O.
Tax Increment Improvement Improvement Improvement
Bonds Bonds Bonds Bonds
Assets
Cash and temporary investments 329,214$ 321,904$ 231,453$ 1,634,646$
Fund balances
Restricted for debt service 329,214$ 321,904$ 231,453$ 1,634,646$
December 31, 2022
Subcombining Balance Sheet
Nonmajor Debt Service Funds
CITY OF NEW HOPE
-89-
9151 9152
2018A 2019A
G.O.G.O.
Improvement Improvement
Bonds Bonds Total
381,553$ 424,265$ 3,323,035$
381,553$ 424,265$ 3,323,035$
-90-
9144 9148 9149 9150
2015A 2016A 2015B 2017A
G.O.G.O.G.O.G.O.
Tax Increment Improvement Improvement Improvement
Bonds Bonds Bonds Bonds
Revenues
Property taxes 235,227$ 262,502$ 205,240$ 1,706,828$
Investment earnings (charges)(6,490) (5,504) (3,191) (18,678)
Total revenues 228,737 256,998 202,049 1,688,150
Expenditures
Debt service
Principal 157,435 165,780 132,909 975,000
Interest and fiscal charges 47,969 68,663 39,378 625,400
Total expenditures 205,404 234,443 172,287 1,600,400
Net change in fund balances 23,333 22,555 29,762 87,750
Fund balances, January 1 305,881 299,349 201,691 1,546,896
Fund balances, December 31 329,214$ 321,904$ 231,453$ 1,634,646$
CITY OF NEW HOPE
Nonmajor Debt Service Funds
Subcombining Statement of Revenues, Expenditures, and Changes in Fund Balances
For the Year Ended December 31, 2022
-91-
9151 9152
2018A 2019A
G.O.G.O.
Improvement Improvement
Bonds Bonds Total
862,739$ 472,448$ 3,744,984$
(844) (4,027) (38,734)
861,895 468,421 3,706,250
490,000 275,000 2,196,124
328,381 170,925 1,280,716
818,381 445,925 3,476,840
43,514 22,496 229,410
338,039 401,769 3,093,625
381,553$ 424,265$ 3,323,035$
-92-
2021
Original and Actual Over (Under)Actual
Final Budget Amounts Budget Amounts
Revenues
Taxes
Property taxes 11,393,354$ 11,391,654$ (1,700)$ 10,914,572$
Franchise taxes 535,000 519,744 (15,256) 522,395
Total taxes 11,928,354 11,911,398 (16,956) 11,436,967
Licenses and permits
Business regulatory licenses 74,820 76,461 1,641 78,111
Nonbusiness licenses and permits 254,750 270,410 15,660 320,976
Total licenses and permits 329,570 346,871 17,301 399,087
Intergovernmental
Local government aid 866,642 866,708 66 861,726
Highway maintenance aid 230,000 304,014 74,014 213,954
Other federal, state, and local grants 107,900 147,675 39,775 1,241,183
State insurance premium tax 320,000 311,344 (8,656) 286,502
Total intergovernmental 1,524,542 1,629,741 105,199 2,603,365
Charges for services
General government 164,250 136,886 (27,364) 194,542
Public safety 384,250 617,494 233,244 333,245
Public works 5,760 2,660 (3,100) 3,860
Culture and recreation 1,236,425 1,083,587 (152,838) 959,680
Total charges for services 1,790,685 1,840,627 49,942 1,491,327
Fines and forfeitures 200,000 187,219 (12,781) 185,603
Special assessments 40,000 29,868 (10,132) 32,210
Investment earnings (charges)50,000 (261,964) (311,964) (93,405)
Miscellaneous 14,000 52,168 38,168 80,922
Total revenues 15,877,151 15,735,928 (141,223) 16,136,076
Expenditures
Current
General government
Mayor and City Council
Personnel services 61,666 61,916 250 61,068
Supplies 2,000 1,789 (211) 2,386
Other services and charges 39,683 38,636 (1,047) 42,413
Total Mayor and City Council 103,349 102,341 (1,008) 105,867
City Hall
Supplies 18,000 19,840 1,840 19,403
Other services and charges 405,016 461,680 56,664 435,443
Total City Hall 423,016 481,520 58,504 454,846
Schedule of Revenues, Expenditures and
2022
CITY OF NEW HOPE
General Fund
Changes in Fund Balances – Budget and Actual
For the Year Ended December 31, 2022
(With Comparative Actual Amounts for the Year Ended December 31, 2021)
-93-(continued)
Changes in Fund Balances – Budget and Actual (continued)
For the Year Ended December 31, 2022
(With Comparative Actual Amounts for the Year Ended December 31, 2021)
2021
Original and Actual Over (Under)Actual
Final Budget Amounts Budget Amounts
Expenditures (continued)
Current (continued)
General government (continued)
City manager
Personnel services 438,389 437,750 (639) 430,602
Supplies 900 894 (6) 593
Other services and charges 24,564 33,827 9,263 22,591
Total city manager 463,853 472,471 8,618 453,786
Elections
Personnel services 33,811 26,562 (7,249) –
Supplies 2,500 2,257 (243) –
Other services and charges 6,595 37,675 31,080 10,326
Total elections 42,906 66,494 23,588 10,326
Finance
Personnel services 194,621 192,077 (2,544) 174,759
Supplies 1,350 1,659 309 710
Other services and charges 83,574 78,875 (4,699) 103,071
Total finance 279,545 272,611 (6,934) 278,540
Auditing
Other services and charges 29,769 32,019 2,250 33,356
Assessing
Other services and charges 172,000 172,000 – 165,000
Legal
Other services and charges 20,000 38,499 18,499 16,901
Human resources
Personnel services 276,781 294,843 18,062 293,314
Supplies 450 153 (297) 570
Other services and charges 42,801 36,365 (6,436) 31,542
Total human resources 320,032 331,361 11,329 325,426
Planning and zoning
Personnel services 263,420 263,943 523 130,932
Supplies 300 166 (134) 414
Other services and charges 32,383 22,175 (10,208) 28,482
Total planning and zoning 296,103 286,284 (9,819) 159,828
Communication
Personnel services 113,468 112,914 (554) 104,241
Supplies 2,240 2,813 573 6,095
Other services and charges 62,305 51,592 (10,713) 33,913
Total communication 178,013 167,319 (10,694) 144,249
Total general government 2,328,586 2,422,919 94,333 2,148,125
2022
CITY OF NEW HOPE
General Fund
Schedule of Revenues, Expenditures and
-94-(continued)
Changes in Fund Balances – Budget and Actual (continued)
For the Year Ended December 31, 2022
(With Comparative Actual Amounts for the Year Ended December 31, 2021)
2021
Original and Actual Over (Under)Actual
Final Budget Amounts Budget Amounts
Expenditures (continued)
Current (continued)
General government (continued)
Public safety
Police
Personnel services 5,645,753 5,270,019 (375,734) 5,025,038
Supplies 129,100 120,616 (8,484) 196,742
Other services and charges 1,116,403 1,216,358 99,955 1,233,360
Total police 6,891,256 6,606,993 (284,263) 6,455,140
Police reserves
Supplies 2,100 6,187 4,087 1,097
Other services and charges 10,640 6,374 (4,266) 8,612
Total police reserves 12,740 12,561 (179) 9,709
Fire and safety
Supplies 300 – (300) –
Other services and charges 1,505,380 1,517,553 12,173 1,418,843
Total fire and safety 1,505,680 1,517,553 11,873 1,418,843
Animal control
Personnel services 90,270 94,510 4,240 84,731
Supplies 600 1,524 924 262
Other services and charges 32,662 26,888 (5,774) 19,568
Total animal control 123,532 122,922 (610) 104,561
Protective inspection
Personnel services 568,103 560,199 (7,904) 512,720
Supplies 2,200 1,299 (901) 1,447
Other services and charges 96,592 93,580 (3,012) 88,741
Total protective inspection 666,895 655,078 (11,817) 602,908
Total public safety 9,200,103 8,915,107 (284,996) 8,591,161
Public works
Street maintenance
Personnel services 639,801 664,587 24,786 592,485
Supplies 143,350 112,952 (30,398) 99,238
Other services and charges 775,778 1,046,310 270,532 917,788
Total street maintenance 1,558,929 1,823,849 264,920 1,609,511
Engineering
Other services and charges 40,000 46,888 6,888 43,492
Total public works 1,598,929 1,870,737 271,808 1,653,003
CITY OF NEW HOPE
General Fund
Schedule of Revenues, Expenditures and
2022
-95-(continued)
Changes in Fund Balances – Budget and Actual (continued)
For the Year Ended December 31, 2022
(With Comparative Actual Amounts for the Year Ended December 31, 2021)
2021
Original and Actual Over (Under)Actual
Final Budget Amounts Budget Amounts
Expenditures (continued)
Current (continued)
Culture and recreation
Recreation
Personnel services 713,732 681,610 (32,122) 643,523
Supplies 118,800 122,743 3,943 84,108
Other services and charges 233,169 244,737 11,568 220,919
Total recreation 1,065,701 1,049,090 (16,611) 948,550
For the Year Ended December 31, 2021
Parks
Personnel services 701,168 678,176 (22,992) 647,953
Supplies 38,250 33,194 (5,056) 33,376
Other services and charges 454,400 501,622 47,222 446,244
Total parks 1,193,818 1,212,992 19,174 1,127,573
Swimming pool
Personnel services 459,457 449,909 (9,548) 331,813
Supplies 63,500 84,837 21,337 55,812
Other services and charges 191,699 218,453 26,754 165,705
Total swimming pool 714,656 753,199 38,543 553,330
Total culture and recreation 2,974,175 3,015,281 41,106 2,629,453
Total current expenditures 16,101,793 16,224,044 122,251 15,021,742
Capital outlay
General government 1,000 766 (234) –
Public safety 76,400 108,592 32,192 181,616
Total capital outlay 77,400 109,358 31,958 181,616
Total expenditures 16,179,193 16,333,402 154,209 15,203,358
Excess (deficiency) of revenues
over expenditures (302,042) (597,474) (295,432) 932,718
Other financing sources (uses)
Transfers inSale of capital assets – 12,145 12,145 6,800
Transfers in 302,042 802,040 499,998 450,672
Transfers (out)– (1,142,382) (1,142,382) (1,642,533)
Total other financing sources (uses)302,042 (328,197) (630,239) (1,185,061)
Net change in fund balances – (925,671) (925,671) (252,343)
Fund balances, January 1 8,673,743 8,673,743 – 8,926,086
Fund balances, December 31 8,673,743$ 7,748,072$ (925,671)$ 8,673,743$
CITY OF NEW HOPE
General Fund
Schedule of Revenues, Expenditures and
2022
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INTERNAL SERVICE FUNDS
Internal Service Funds are used to account for activities and services performed for other organizational
units within the City. Charges to other city agencies are made to support these activities.
Central Garage Fund – This fund is used to account for the rental of motor vehicles and other equipment
to other departments.
Employee Leave Fund – This fund accounts for the cost of providing leave time benefits to employees,
which includes vacation, holiday, sick time, and personal leave. Funding is based on chargebacks to
departments, based on a percentage of wages.
Insurance Reserve Fund – This fund accounts for all insurance costs for the City. Funding is provided by
chargebacks to departments by percentage of wages for health, dental, life, and disability insurance.
Funding for general liability and property insurance is provided by chargebacks to departments , based on
activities and the use of property.
Information Technology Fund – This fund accounts for the City’s investment in, and operations of,
computer networks, application and system software, internet access, data storage, and related activities.
9402 9408 9407 9410
Central Employee Insurance Information
Garage Leave Reserve Technology Totals
Assets
Current assets
Cash and temporary investments 6,851,426$ 2,176,047$ 618,925$ 821,106$ 10,467,504$
Receivables
Accounts – – 10,511 – 10,511
Inventories 70,180 – – – 70,180
Total current assets 6,921,606 2,176,047 629,436 821,106 10,548,195
Noncurrent assets
Capital assets
Land 85,647 – – – 85,647
Buildings and structures 3,158,296 – – – 3,158,296
Vehicles and equipment 10,311,565 – – 448,352 10,759,917
Leased vehicles and equipment 328,079 – – – 328,079
Less accumulated depreciation/amortization (10,403,768) – – (358,977) (10,762,745)
Total capital assets, net 3,479,819 – – 89,375 3,569,194
Total assets 10,401,425 2,176,047 629,436 910,481 14,117,389
Deferred outflows of resources
Deferred pension resources 86,123 – – 7,215 93,338
Liabilities
Current liabilities
Accrued salaries payable 12,649 31,882 127,649 887 173,067
Accounts and contracts payable 61,525 5,034 91,705 30,089 188,353
Deposits payable – 7,259 – – 7,259
Due to other governments 671 – – – 671
Compensated absences payable,
current portion – 86,302 – – 86,302
Leases payable, current portion 78,237 – – – 78,237
Total current liabilities 153,082 130,477 219,354 30,976 533,889
Noncurrent liabilities
OPEB payable – – 700,562 – 700,562
Pension liability 286,138 – – 23,972 310,110
Compensated absences payable – 776,711 – – 776,711
Leases payable 189,078 – – – 189,078
Total noncurrent liabilities 475,216 776,711 700,562 23,972 1,976,461
Total liabilities 628,298 907,188 919,916 54,948 2,510,350
Deferred inflows of resources
Deferred pension resources 4,364 – – 366 4,730
Net position
Net investment in capital assets 3,212,504 – – 89,375 3,301,879
Unrestricted 6,642,382 1,268,859 (290,480) 773,007 8,393,768
Total net position 9,854,886$ 1,268,859$ (290,480)$ 862,382$ 11,695,647$
CITY OF NEW HOPE
Internal Service Funds
Combining Statement of Net Position
December 31, 2022
-97-
9402 9408 9407 9410
Central Employee Insurance Information
Garage Leave Reserve Technology Totals
Operating revenues
Billings to departments 2,023,632$ 739,392$ 27,125$ 979,632$ 3,769,781$
Other 131,439 – 98,714 105 230,258
Total operating revenues 2,155,071 739,392 125,839 979,737 4,000,039
Operating expenses
Personnel services 389,564 467,403 – 47,074 904,041
Supplies 302,661 – – 25,557 328,218
Utilities 81,875 – – 48,233 130,108
Other services and charges 420,816 – 81,893 694,317 1,197,026
Depreciation/amortization 634,255 – – 23,283 657,538
Total operating expenses 1,829,171 467,403 81,893 838,464 3,216,931
Operating income 325,900 271,989 43,946 141,273 783,108
Nonoperating revenues (expenses)
Investment earnings (charges)(291,148) – – (22,031) (313,179)
Gain (loss) on sale of capital assets (2,907) – – – (2,907)
Interest expense (12,413) – – – (12,413)
Total nonoperating revenues (expenses)(306,468) – – (22,031) (328,499)
Income before transfers 19,432 271,989 43,946 119,242 454,609
Transfers in – – – 200,000 200,000
Transfers (out)(37,428) – – (59,880) (97,308)
Change in net position (17,996) 271,989 43,946 259,362 557,301
Net position, January 1 9,872,882 996,870 (334,426) 603,020 11,138,346
Net position, December 31 9,854,886$ 1,268,859$ (290,480)$ 862,382$ 11,695,647$
For the Year Ended December 31, 2022
Changes in Net Position
Combining Statement of Revenues, Expenses and
Internal Service Funds
CITY OF NEW HOPE
-98-
9402 9408 9407 9410
Central Employee Insurance Information
Garage Leave Reserve Technology Totals
Cash flows from operating activities
Receipts from interfund services provided 2,023,632$ 739,392$ 26,407$ 979,632$ 3,769,063$
Other operating receipts 131,439 – 98,714 105 230,258
Payments to suppliers (788,511) 5,034 895 (761,794) (1,544,376)
Payments to employees (376,569) (480,488) (68,842) (29,918) (955,817)
Net cash from operating activities 989,991 263,938 57,174 188,025 1,499,128
Cash flows from noncapital financing activities
Transfers in – – – 200,000 200,000
Transfers (out)(37,428) – – (59,880) (97,308)
Net cash from noncapital financing activities (37,428) – – 140,120 102,692
Cash flows from capital and related financing activities
Acquisition capital assets (749,448) – – – (749,448)
Principal paid on long-term debt (60,764) – – – (60,764)
Interest paid on long-term debt (12,413) – – – (12,413)
Net cash from capital and
related financing activities (822,625) – – – (822,625)
Investment earnings received (charged)(291,148) – – (22,031) (313,179)
Net increase in cash and cash equivalents (161,210) 263,938 57,174 306,114 466,016
Cash and cash equivalents, January 1 7,012,636 1,912,109 561,751 514,992 10,001,488
Cash and cash equivalents, December 31 6,851,426$ 2,176,047$ 618,925$ 821,106$ 10,467,504$
Reconciliation of operating income
to net cash from operating activities
Operating income 325,900$ 271,989$ 43,946$ 141,273$ 783,108$
Adjustments to reconcile operating income
to net cash from operating activities
Depreciation/amortization 634,255 – – 23,283 657,538
(Increase) decrease in assets
Accounts receivable – – (718) – (718)
Inventories (5,978) – – – (5,978)
(Increase) decrease in deferred outflows of resources
Deferred pension resources 31,046 – – (7,215) 23,831
Increase (decrease) in liabilities
Accounts and contracts payable 22,821 5,034 82,788 6,313 116,956
Accrued salaries payable (1,960) (8,268) 29,872 33 19,677
Due to other governments (2) – – – (2)
Deposits payable – 7,259 – – 7,259
Compensated absences payable – (12,076) – – (12,076)
OPEB payable – – (98,714) – (98,714)
Pension liability 126,381 – – 23,972 150,353
Increase (decrease) in deferred inflows of resources
Deferred pension resources (142,472) – – 366 (142,106)
Net cash from operating activities 989,991$ 263,938$ 57,174$ 188,025$ 1,499,128$
Schedule of noncash capital and related financing activities
Capital assets acquired through leases payable 231,093$ –$ –$ –$ 231,093$
Net book value of capital assets disposals 2,907$ –$ –$ –$ 2,907$
CITY OF NEW HOPE
Cash flows from investing activities
For the Year Ended December 31, 2022
Combining Statement of Cash Flows
Internal Service Funds
-99-
STATISTICAL SECTION (UNAUDITED)
CITY OF NEW HOPE, MINNESOTA
FOR THE YEAR ENDED
DECEMBER 31, 2022
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Contents:
Financial Trends
Revenue Capacity
Debt Capacity
Demographic and Economic Information
Operating Indicators
Source: Unless otherwise noted, the information in these schedules is derived from the ACFR for the relevant year.
STATISTICAL SECTION (UNAUDITED)
This part of the City of New Hope,Minnesota’s (the City)Annual Comprehensive Financial Report (ACFR)presents
detailed information as a context for understanding what the information in the financial statements,note disclosures,and
required supplementary information says about the City’s overall financial health.
These schedules contain trend information to help the reader understand how the City’s financial performance and
well-being have changed over time.
These schedules contain information to help the reader assess the City’s most significant revenue source,including the
property tax and utility revenue.
These schedules present information to help the reader assess the affordability of the City’s current levels of outstanding
debt and the City’s ability to issue additional debt in the future.
These schedules offer demographic and economic indicators to help the reader understand the environment within which
the City’s financial activities take place.
These schedules contain service and infrastructure data to help the reader understand how the information in the City’s
financial report relates to the services the City provides, and the activities it performs.
Fiscal Year
2013 2014 2015 2016
Governmental activities
Net investment in capital assets 30,509,373$ 26,305,906$ 27,549,276$ 29,951,754$
Restricted 1,619,394 5,680,117 5,917,848 4,893,801
Unrestricted 23,704,592 23,130,558 14,623,043 11,081,824
Total governmental activities net position 55,833,359$ 55,116,581$ 48,090,167$ 45,927,379$
Business-type activities
Net investment in capital assets 14,142,276$ 14,757,333$ 16,087,559$ 19,286,134$
Restricted 300,000 455,000 627,939 868,853
Unrestricted 2,496,008 1,798,707 (825,297) (1,839,376)
Total business-type activities net position 16,938,284$ 17,011,040$ 15,890,201$ 18,315,611$
Primary government
Net investment in capital assets 44,651,649$ 41,063,239$ 43,636,835$ 49,237,888$
Restricted 1,919,394 6,135,117 6,545,787 5,762,654
Unrestricted 26,200,600 24,929,265 13,797,746 9,242,448
Total primary government net position 72,771,643$ 72,127,621$ 63,980,368$ 64,242,990$
Note 1:
Note 2:
The City implemented GASB Statement No.68 in 2015,resulting in a restatement of beginning net position for
the effects of implementing this standard. Net position for previous years has not been restated.
The City implemented GASB Statement No.75 in 2018,resulting in a restatement of beginning net position for
the effects of implementing this standard. Net position for previous years has not been restated.
CITY OF NEW HOPE
Net Position by Component
Last Ten Fiscal Years
(Accrual Basis of Accounting)
-100-
2017 2018 2019 2020 2021 2022
27,747,845$ 27,888,417$ 30,139,510$ 31,359,813$ 34,985,781$ 37,045,401$
6,207,578 6,000,843 6,628,138 7,740,859 8,598,311 9,539,926
11,728,807 14,384,257 16,720,142 19,716,696 23,427,177 22,780,655
45,684,230$ 48,273,517$ 53,487,790$ 58,817,368$ 67,011,269$ 69,365,982$
18,663,872$ 18,783,898$ 19,315,353$ 20,127,288$ 22,607,046$ 24,036,351$
1,031,673 1,160,680 1,358,401 1,560,053 – –
84,741 1,783,306 3,054,187 4,534,420 6,455,200 7,525,398
19,780,286$ 21,727,884$ 23,727,941$ 26,221,761$ 29,062,246$ 31,561,749$
46,411,717$ 46,672,315$ 49,454,863$ 51,487,101$ 57,592,827$ 61,081,752$
7,239,251 7,161,523 7,986,539 9,300,912 8,598,311 9,539,926
11,813,548 16,167,563 19,756,329 24,251,116 29,882,377 30,306,053
65,464,516$ 70,001,401$ 77,197,731$ 85,039,129$ 96,073,515$ 100,927,731$
-101-
Fiscal Year
2013 2014 2015 2016
Expenses
Governmental activities
General government 1,837,194$ 1,976,377$ 1,700,133$ 1,871,736$
Public safety 6,238,779 6,795,836 7,258,504 9,463,124
Public works 1,790,669 2,467,618 4,229,077 3,143,421
Culture and recreation 1,946,243 2,145,224 2,223,152 2,405,905
Economic development 431,332 1,704,010 655,093 732,106
Interest and fiscal charges 289,009 140,321 269,284 323,326
Total governmental activities expenses 12,533,226 15,229,386 16,335,243 17,939,618
Business-type activities
Sewer 2,310,604 1,976,864 2,458,724 2,187,006
Water 3,215,714 4,635,686 4,584,929 3,633,022
Golf course 262,894 304,059 291,695 341,776
Ice arena 957,784 877,826 880,581 949,438
Storm water 768,610 558,160 713,218 830,108
Street lighting 117,518 99,560 105,452 102,894
Total business-type activities expenses 7,633,124 8,452,155 9,034,599 8,044,244
Total primary government expenses 20,166,350$ 23,681,541$ 25,369,842$ 25,983,862$
Program revenues
Governmental activities
Charges for services
General government 198,297$ 234,440$ 254,333$ 267,970$
Public safety 880,843 1,047,721 1,073,079 1,035,725
Public works 226,228 224,790 219,634 220,208
Culture and recreation 672,067 617,459 668,480 699,613
Economic development – – – 20,000
Operating grants and contributions 828,276 1,013,058 845,517 1,002,681
Capital grants and contributions 3,929,565 47,917 460,537 711,527
Total governmental activities program
revenues 6,735,276 3,185,385 3,521,580 3,957,724
Business-type activities
Charges for services
Sewer utility 2,443,202 2,414,482 2,468,638 2,627,875
Water utility 3,460,008 3,634,873 3,777,108 4,124,346
Golf course 268,133 254,508 287,056 315,162
Ice arena 725,211 775,784 745,886 749,689
Storm water 963,167 948,537 981,723 1,037,429
Street lighting 125,604 123,060 128,890 137,525
Operating grants and contributions 306,520 444,484 33,032 159,898
Capital grants and contributions 225,300 11,469 194,590 1,394,822
Total business-type activities program
revenues 8,517,145 8,607,197 8,616,923 10,546,746
Total primary government program revenues 15,252,421$ 11,792,582$ 12,138,503$ 14,504,470$
CITY OF NEW HOPE
Changes in Net Position
Last Ten Fiscal Years
(Accrual Basis of Accounting)
-102-
2017 2018 2019 2020 2021 2022
2,666,781$ 1,983,179$ 1,850,242$ 2,945,625$ 1,152,633$ 2,991,397$
8,257,709 7,578,150 8,540,198 8,968,009 7,764,051 9,224,111
2,975,007 3,661,766 3,816,417 3,725,075 4,295,427 4,716,237
2,485,417 2,280,418 2,145,988 2,270,751 3,095,760 3,845,915
2,163,967 1,244,292 749,651 1,350,348 1,434,986 1,374,777
725,982 1,074,469 1,412,763 1,570,807 1,518,351 1,440,518
19,274,863 17,822,274 18,515,259 20,830,615 19,261,208 23,592,955
2,399,248 2,631,598 2,834,973 3,096,526 2,973,301 3,057,860
3,504,722 4,038,859 3,762,099 4,195,981 4,813,286 4,732,554
322,278 299,217 319,871 316,173 368,659 386,668
996,056 987,912 1,003,048 1,016,296 1,095,343 1,176,353
834,688 736,166 888,156 877,244 991,031 958,733
101,668 119,250 116,732 133,270 135,899 157,248
8,158,660 8,813,002 8,924,879 9,635,490 10,377,519 10,469,416
27,433,523$ 26,635,276$ 27,440,138$ 30,466,105$ 29,638,727$ 34,062,371$
340,421$ 250,575$ 223,379$ 217,183$ 270,287$ 210,258$
1,302,551 935,116 880,634 736,004 832,767 1,064,683
234,564 228,660 226,249 234,121 235,879 254,108
686,335 570,143 529,739 316,820 996,447 1,205,491
41,112 – – – – –
777,368 967,499 826,489 866,861 1,093,760 1,235,241
1,150,840 941,212 2,819,823 1,048,750 720,699 851,233
4,533,191 3,893,205 5,506,313 3,419,739 4,149,839 4,821,014
2,899,257 3,154,709 3,380,075 3,712,613 3,906,809 4,026,715
4,289,255 4,696,593 4,675,498 5,468,607 5,882,735 5,850,384
283,375 298,696 296,538 423,766 473,508 453,222
849,701 864,531 892,740 601,291 925,967 919,818
1,082,348 1,139,007 1,190,058 1,259,707 1,321,518 1,378,944
137,491 144,582 152,975 161,866 170,656 178,120
27,568 327,335 14,308 110,331 146,755 108,135
58,237 14,203 28,824 12,922 13,475 13,756
9,627,232 10,639,656 10,631,016 11,751,103 12,841,423 12,929,094
14,160,423$ 14,532,861$ 16,137,329$ 15,170,842$ 16,991,262$ 17,750,108$
-103-(continued)
Fiscal Year
2013 2014 2015 2016
Net (expense) revenue
Governmental activities (5,797,950)$ (12,044,001)$ (12,813,663)$ (13,981,894)$
Business-type activities 884,021 155,042 (417,676) 2,502,502
Total primary government net expense (4,913,929)$ (11,888,959)$ (13,231,339)$ (11,479,392)$
General revenues and other changes in net position
Governmental activities
Property taxes 9,554,629$ 9,732,776$ 10,131,759$ 10,843,702$
Tax increments 511,924 537,871 430,879 492,584
Franchise taxes 438,834 438,541 442,556 447,248
Grants and contributions not restricted
to specific programs 49,005 179,537 600,030 633,056
Unrestricted investment earnings (charges)198,658 324,498 331,417 377,960
Gain on sale of capital assets 37,201 – – –
Transfers (317,987) 114,000 68,204 121,800
Total governmental activities 10,472,264 11,327,223 12,004,845 12,916,350
Business-type activities
Unrestricted investment earnings (charges)7,508 31,714 35,700 44,708
Transfers 317,987 (114,000) (68,204) (121,800)
Total business-type activities 325,495 (82,286) (32,504) (77,092)
Total primary government 10,797,759$ 11,244,937$ 11,972,341$ 12,839,258$
Changes in net position
Governmental activities 4,674,314$ (716,778)$ (808,818)$ (1,065,544)$
Business-type activities 1,209,516 72,756 (450,180) 2,425,410
Total primary government 5,883,830$ (644,022)$ (1,258,998)$ 1,359,866$
Note:The City implemented GASB Statement Nos.67 and 68 in fiscal 2015.The City implemented GASB Statement No.75 in
fiscal 2018. Information has not been restated for prior years.
(Accrual Basis of Accounting)
CITY OF NEW HOPE
Changes in Net Position (continued)
Last Ten Fiscal Years
-104-
2017 2018 2019 2020 2021 2022
(14,741,672)$ (13,929,069)$ (13,008,946)$ (17,410,876)$ (15,111,369)$ (18,771,941)$
1,468,572 1,826,654 1,706,137 2,115,613 2,463,904 2,459,678
(13,273,100)$ (12,102,415)$ (11,302,809)$ (15,295,263)$ (12,647,465)$ (16,312,263)$
11,929,597$ 12,941,920$ 15,265,428$ 16,821,240$ 17,357,910$ 18,203,975$
841,098 1,112,753 1,317,803 1,918,857 2,118,199 2,219,677
912,357 945,244 957,448 958,162 962,395 959,744
628,119 697,895 803,035 2,497,630 3,155,397 905,573
531,240 798,557 1,412,308 781,304 (22,179) (838,869)
50,456 70,400 369,163 22,000 70,300 9,238
(19,110) (48,413) (144,624) (240,739) (336,752) (332,684)
14,873,757 16,518,356 19,980,561 22,758,454 23,305,270 21,126,654
36,811 72,531 149,296 137,468 39,829 (292,859)
19,110 48,413 144,624 240,739 336,752 332,684
55,921 120,944 293,920 378,207 376,581 39,825
14,929,678$ 16,639,300$ 20,274,481$ 23,136,661$ 23,681,851$ 21,166,479$
132,085$ 2,589,287$ 6,971,615$ 5,347,578$ 8,193,901$ 2,354,713$
1,524,493 1,947,598 2,000,057 2,493,820 2,840,485 2,499,503
1,656,578$ 4,536,885$ 8,971,672$ 7,841,398$ 11,034,386$ 4,854,216$
-105-
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Ad Valorem
Property Taxes Tax Increments Franchise Taxes Total
9,554,629$ 511,924$ 438,834$ 10,505,387$
9,732,776 537,871 438,541 10,709,188
10,131,759 430,879 442,556 11,005,194
10,843,702 492,584 447,248 11,783,534
11,929,597 841,098 912,357 13,683,052
12,941,920 1,112,753 945,244 14,999,917
15,265,428 1,317,803 957,448 17,540,679
16,821,240 1,918,857 958,162 19,698,259
17,357,910 2,118,199 962,395 20,438,504
18,203,975 2,219,677 959,744 21,383,396
Fiscal Year
2016
2013
2014
2015
2017
2018
2019
2020
2021
2022
CITY OF NEW HOPE
Governmental Activities Tax Revenues by Source
Last Ten Fiscal Years
(Accrual Basis of Accounting)
-106-
Fiscal Year
2013 2014 2015 2016
General Fund
Nonspendable 15,484$ 16,005$ 16,765$ 18,242$
Committed – – – –
Unassigned 5,567,933 5,805,259 6,063,647 6,255,436
Total General Fund 5,583,417$ 5,821,264$ 6,080,412$ 6,273,678$
All other governmental funds
Restricted –$ 5,687,949$ 8,069,238$ 7,772,782$
Committed 5,550,819 4,771,304 5,431,288 5,397,075
Assigned 4,511,073 7,839,792 5,496,484 4,958,094
Unassigned 8,204,338 (134,792) (226,356) (3,015,315)
Total all other governmental funds 18,266,230$ 18,164,253$ 18,770,654$ 15,112,636$
Total all governmental funds 23,849,647$ 23,985,517$ 24,851,066$ 21,386,314$
CITY OF NEW HOPE
Fund Balances of Governmental Funds
Last Ten Fiscal Years
(Modified Accrual Basis of Accounting)
-107-
2017 2018 2019 2020 2021 2022
17,617$ 18,763$ 22,980$ 24,499$ 49,680$ 12,957$
– – – – – 79,634
6,871,038 7,162,188 7,116,723 8,901,587 8,624,063 7,655,481
6,888,655$ 7,180,951$ 7,139,703$ 8,926,086$ 8,673,743$ 7,748,072$
24,605,109$ 24,646,820$ 13,304,922$ 9,016,306$ 9,779,064$ 10,602,043$
5,837,809 5,414,740 5,033,555 4,639,390 4,520,972 4,644,669
5,176,318 5,695,269 6,248,128 6,993,400 9,059,040 10,314,362
(4,178,684) (3,448,208) (2,475,320) (2,119,931) (1,978,033) (1,905,269)
31,440,552$ 32,308,621$ 22,111,285$ 18,529,165$ 21,381,043$ 23,655,805$
38,329,207$ 39,489,572$ 29,250,988$ 27,455,251$ 30,054,786$ 31,403,877$
-108-
Fiscal Year
2013 2014 2015 2016
Revenues
Property taxes 9,531,663$ 9,718,800$ 10,145,204$ 10,868,985$
Tax increments 511,924 537,871 430,879 492,584
Franchise taxes 438,834 438,541 442,556 447,248
Licenses and permits 273,117 353,973 389,957 466,548
Intergovernmental 4,463,113 818,825 1,359,511 2,063,546
Charges for services 1,585,964 1,663,153 1,601,081 1,571,798
Fines and forfeits 239,201 215,585 237,591 191,960
Special assessments 178,335 98,617 38,417 173,158
Investment income (charges)178,217 248,013 274,116 304,252
Miscellaneous 111,443 129,980 202,057 42,103
Total revenues 17,511,811 14,223,358 15,121,369 16,622,182
Expenditures
General government 1,571,701 1,668,474 1,688,752 1,872,436
Public safety 5,967,599 6,397,860 6,866,105 7,168,102
Public works 1,254,201 1,225,551 1,328,371 1,606,369
Culture and recreation 1,613,518 1,761,961 1,853,741 1,938,131
Economic development 582,621 298,825 498,479 588,167
Capital outlay 4,239,938 3,000,518 8,204,694 8,220,964
Debt service
Principal retirement 340,000 350,000 405,000 415,000
Interest 306,462 212,025 131,530 257,661
Bond issuance – 2,200 114,607 58,188
Total expenditures 15,876,040 14,917,414 21,091,279 22,125,018
Excess of revenues
over (under) expenditures 1,635,771 (694,056) (5,969,910) (5,502,836)
Other financing sources (uses)
Transfers in 360,427 669,461 3,209,226 1,630,270
Sale of capital assets 1,460 4,055,382 – –
Bonds issued – – – 2,824,075
Premiums on debt issues – – 171,339 107,553
Refunding bonds issued – – 6,470,000 –
Payments to refunded bond escrow agent – (3,780,000) – –
Transfers (out)(600,414) (477,461) (3,015,226) (1,426,570)
Total other financing sources (uses)(238,527) 467,382 6,835,339 3,135,328
Net change in fund balances 1,397,244$ (226,674)$ 865,429$ (2,367,508)$
Debt service as a percentage of noncapital
expenditures 5.6% 4.5% 3.5% 4.6%
CITY OF NEW HOPE
Changes in Fund Balances of Governmental Funds
Last Ten Fiscal Years
(Modified Accrual Basis of Accounting)
-109-
2017 2018 2019 2020 2021 2022
11,961,711$ 12,904,297$ 15,223,680$ 16,756,108$ 17,452,708$ 18,234,216$
841,098 1,112,753 1,317,803 1,918,857 2,118,199 2,219,677
912,357 945,244 957,448 958,162 962,395 959,744
641,870 367,931 320,438 393,911 399,087 346,871
1,844,648 2,195,761 3,947,039 4,289,738 3,253,349 3,592,037
1,727,615 1,399,998 1,376,176 986,887 1,778,180 2,253,689
208,909 230,657 227,343 138,922 185,603 187,219
92,458 282,589 197,566 234,265 142,413 135,427
486,746 658,606 1,166,238 607,490 34,964 (525,690)
137,591 33,966 173,679 26,700 185,564 56,273
18,855,003 20,131,802 24,907,410 26,311,040 26,512,462 27,459,463
2,622,277 1,787,553 1,900,480 2,062,733 2,148,125 2,422,919
7,724,950 7,997,311 8,427,939 8,361,209 8,591,161 8,915,107
1,671,593 1,717,815 1,790,715 1,853,395 1,897,270 2,193,207
2,066,692 2,015,729 2,032,585 2,035,658 2,629,453 3,015,281
1,737,947 815,352 513,946 1,291,350 1,337,525 1,298,292
5,217,461 12,956,485 22,573,850 8,669,758 4,612,615 3,576,492
523,497 799,734 968,674 1,905,890 2,548,885 2,641,527
455,539 769,497 1,273,302 1,778,653 1,455,861 1,624,316
251,648 148,365 90,446 – 263,000 –
22,271,604 29,007,841 39,571,937 27,958,646 25,483,895 25,687,141
(3,416,601) (8,876,039) (14,664,527) (1,647,606) 1,028,567 1,772,322
4,305,261 788,458 2,162,676 418,661 5,784,869 2,498,930
– – 331,299 – 6,800 12,145
18,435,000 9,520,000 5,235,000 – – –
1,857,609 476,673 454,261 – – –
– – – – – –
– – – – – –
(4,238,376) (748,726) (1,981,951) (566,792) (4,220,701) (2,934,306)
20,359,494 10,036,405 6,201,285 (148,131) 1,570,968 (423,231)
16,942,893$ 1,160,366$ (8,463,242)$ (1,795,737)$ 2,599,535$ 1,349,091$
5.4% 9.2% 12.6% 18.7% 18.5% 18.7%
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Ad Valorem
Property Tax Tax Increments Franchise Tax Total
9,531,663$ 511,924$ 438,834$ 10,482,421$
9,781,800 537,871 438,541 10,758,212
10,145,204 430,879 442,556 11,018,639
10,868,985 492,584 447,248 11,808,817
11,961,711 841,098 912,357 13,715,166
12,904,297 1,112,753 945,244 14,962,294
15,223,680 1,317,803 957,448 17,498,931
16,756,108 1,918,857 958,162 19,633,127
17,452,708 2,118,199 962,395 20,533,302
18,234,216 2,219,677 959,744 21,413,637
Fiscal Year
2016
2013
2014
2015
2017
2018
2019
2020
2021
2022
CITY OF NEW HOPE
General Governmental Tax Revenues by Source
Last Ten Fiscal Years
(Modified Accrual Basis of Accounting)
-111-
Contributions Less Distributions
Real Personal Total To Fiscal Tax From Fiscal
Property Property Tax Capacity Disparities Increments Disparities
15,476,014$ 188,654$ 15,664,668$ (2,255,476)$ (366,752)$ 3,448,346$
15,454,712 211,746 15,666,458 (2,154,731) (377,138) 3,437,911
16,638,481 221,628 16,860,109 (2,144,256) (338,715) 3,505,922
17,898,058 226,510 18,124,568 (2,277,639) (362,633) 3,437,652
19,196,854 242,052 19,438,906 (2,464,382) (604,222) 3,757,080
21,143,125 260,678 21,403,803 (2,655,561) (810,429) 4,010,408
22,506,796 275,032 22,781,828 (2,870,420) (948,691) 4,111,736
25,019,326 276,748 25,296,074 (2,941,213) (1,378,781) 4,385,923
27,035,066 303,741 27,338,807 (3,317,874) (1,565,751) 4,630,371
28,558,297 162,232 28,720,529 (3,682,171) (1,634,255) 4,968,941
Note:
Source:
Property in the county is reassessed annually.
Hennepin County Auditor/Treasure Department
2013
2014
2015
2016
2017
2018
2019
2020
2021
2022
CITY OF NEW HOPE
Tax Capacity, Market Value, and Estimated Actual Value of Taxable Property
Last Ten Fiscal Years
Tax Capacity
Fiscal Year
Levy
Collective in
-112-
Total Direct Estimated
Net Tax Capacity Taxable Actual
Tax Capacity Rate Market Value Market Value
16,490,786$ 58.812 1,223,862,183$ 1,336,539,900$ 91.57 %
16,572,500 58.599 1,235,267,314 1,346,449,200 91.74
17,883,060 55.978 1,334,517,728 1,440,652,000 92.63
18,921,948 57.405 1,430,939,117 1,534,397,300 93.26
20,127,382 59.931 1,535,054,114 1,636,865,900 93.78
21,948,221 58.589 1,697,092,365 1,792,927,900 94.65
23,074,453 67.990 1,831,436,951 1,921,182,700 95.33
25,362,003 66.089 2,021,382,123 2,106,273,300 95.97
27,085,553 63.940 2,177,389,934 2,257,016,100 96.47
28,373,044 64.323 2,308,596,615 2,382,189,700 96.91
Value as a
Taxable Market
Tax Capacity
Actual Value
Estimated
Percentage of
-113-
Total Direct
and
General Debt City Hennepin ISD No. 281 Special Overlapping
Levy Levy Total County Robbinsdale Districts Rates
57.802 1.010 58.812 49.461 32.347 10.933 151.553
57.622 0.977 58.599 49.959 34.777 11.307 154.642
55.073 0.905 55.978 46.398 33.226 10.561 146.163
56.364 1.041 57.405 45.356 33.833 10.432 147.026
56.906 3.025 59.931 44.087 31.612 10.214 145.844
54.643 3.946 58.589 42.808 31.957 9.052 142.406
56.539 11.451 67.990 41.861 29.909 8.885 148.645
51.374 14.715 66.089 41.084 26.447 8.376 141.996
50.186 13.754 63.940 38.210 25.529 8.597 136.276
51.115 13.208 64.323 38.535 26.507 8.742 138.107
Note:
Source:Hennepin County
Overlapping rates are those of local and county governments that apply to property owners within the City.Not all
overlapping rates apply to all city property owners (e.g.,the rates for special districts apply only to the proportion
of the government’s property owners whose property is located within the geographic boundaries of the special
district).
2013
2014
2015
2016
2020
2021
2018
2019
2022
2017
CITY OF NEW HOPE
Property Tax Rates
Direct and Overlapping Governments
Last Ten Fiscal Years
Year
Overlapping RatesDirect Rates – City of New Hope
-114-
Net Tax Net Tax
Capacity Rank Capacity Rank
Alatus New Hope, LLC 562,175$ 1 2.0 %–$ – – %
STNL (New Hope), LLC 278,650 2 1.0 – – –
Padagis US, LLC 242,450 3 0.9 – – –
Lang Nelson Association 234,875 4 0.8 125,100 8 0.8
Allen Group, LLC 232,650 5 0.8 – – –
FLS Properties 232,010 6 0.8 159,250 1 1.0
Oregon Estates Investment Co.228,213 7 0.8 – – –
Broadway Lanel/Golle/Holmes 223,488 8 0.8 120,025 9 0.7
Omega Healthcare Investors 214,388 9 0.8 – – –
Saint Therese Home, Inc. 213,268 10 0.8 155,900 2 0.9
Paddock Properties, Limited Partnership – – – 151,890 3 0.9
Geneva Management Services, LLC – – – 149,870 4 0.9
Cobalt Industrial Reit – – – 143,850 5 0.9
New Hope Distribution Center, LLC – – – 139,250 6 0.8
New Hope Property LLC – – – 135,888 7 0.8
AX TC Industrial, LLP – – – 119,250 10 0.7
Total 2,662,167$ 9.5 %1,400,273$ 8.4 %
Source:Hennepin County/Treasurer Department
Current Year and Nine Years Ago
Principal Property Taxpayers
CITY OF NEW HOPE
Percentage of
2022 2013
Percentage of
Applied Tax
CapacityTaxpayerCapacity
Applied Tax
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Total Tax Collections in
Levy for Subsequent
Fiscal Year Amount (2)Years (3)Amount
9,570,808$ 9,429,858$ 98.53 %140,950$ 9,570,808$ 100.00 %
9,717,970 9,619,447 98.99 98,523 9,717,970 100.00
10,102,167 10,017,500 99.16 75,797 10,093,297 99.91
10,813,013 10,756,992 99.48 53,622 10,810,614 99.98
11,967,401 11,895,137 99.40 70,201 11,965,338 99.98
12,912,742 12,834,660 99.40 66,513 12,901,173 99.91
15,301,610 15,172,300 99.15 124,143 15,296,443 99.97
16,844,871 16,662,434 98.92 174,479 16,836,913 99.95
17,418,008 17,376,787 99.76 29,894 17,406,681 99.93
18,231,011 18,180,708 99.72 – 18,180,708 99.72
(1)
(2)
(3)
2020
Does not include tax increments levied and collected.
Includes current year cancellations, abatements, and state paid tax credits.
Includes county adjustments for prior year over collections, cancellations, and abatements.
2021
2022
2019
2018
Total Collections to Date
Property Tax Levies and Collections (1)
2017
2015
Last Ten Fiscal Years
of Levy
Ended
2013
2016
2014
December 31,
Percentage
Collected Within the
CITY OF NEW HOPE
Fiscal Year
of Levy
Percentage
Fiscal Year of the Levy
-116-
Business-Type
Activities
General G.O. Tax Lease General
Obligation Increment Revenue Obligation
Bonds Bonds Total Bonds Bonds
1,000,729$ 8,065,761$ 9,066,490$ 3,505,000$ –$
863,620 4,066,223 4,929,843 3,505,000 –
2,898,167 8,250,291 11,148,458 3,505,000 1,831,607
5,682,679 7,968,655 13,651,334 3,505,000 3,934,522
25,713,493 7,687,463 33,400,956 3,505,000 3,833,158
35,323,386 7,140,876 42,464,262 3,505,000 3,757,852
40,433,000 6,582,397 47,015,397 3,505,000 3,509,802
38,930,476 6,005,590 44,936,066 3,505,000 3,285,833
36,866,522 5,354,862 42,221,384 – 4,897,991
34,618,361 4,809,530 39,427,891 – 4,409,426
(1)
Note:
Fiscal Year
Details regarding the City’s outstanding debt can be found in the notes to basic financial statements.
2017
2013
2014
2015
2016
2018
2019
2020
2021
2022
CITY OF NEW HOPE
Ratios of Outstanding Debt by Type
Last Ten Fiscal Years
See the Schedule of Demographic and Economic Statistics for personal income and population data.
Governmental Activities
-117-
G.O.G.O. Tax
Revenue Increment Total Primary
Notes Bonds Total Government Per Capita (1)
2,723,628$ –$ 6,228,628$ 15,295,118$ 1.24 %732$
2,352,553 – 5,857,553 10,787,396 0.86 518
2,151,635 1,587,602 9,075,844 20,224,302 1.49 953
1,950,071 1,586,242 10,975,835 24,627,169 1.75 1,140
1,748,533 1,584,964 10,671,655 44,072,611 3.03 2,046
1,540,021 1,494,575 10,297,448 52,761,710 3.46 2,421
1,326,532 1,401,536 9,742,870 56,758,267 3.57 2,537
1,111,126 1,307,253 9,209,212 54,145,278 3.22 2,463
889,935 1,210,406 6,998,332 49,219,716 2.84 2,251
747,679 1,112,308 6,269,413 45,697,304 2.44 2,089
Percentage
Income (1)
of Personal
-118-
Less Amounts
General Restricted for Total
Obligation Repaying Net Bonded
Bonds Principal Debt Per Capita
11,790,118$ 345,010$ 11,445,108$ 0.935 %548$
7,282,396 614,161 6,668,235 0.540 320
16,719,302 759,386 15,959,916 1.196 752
21,122,169 1,048,498 20,073,671 1.403 929
40,567,611 2,173,637 38,393,974 2.501 1,782
49,226,710 1,793,587 47,433,123 2.795 2,177
53,253,267 3,193,279 50,059,988 2.733 2,237
50,640,278 3,780,748 46,859,530 2.318 2,131
49,219,716 2,503,260 46,716,456 2.146 2,136
45,697,304 2,776,915 42,920,389 1.859 1,963
Note 1:
Note 2:
Note 3:Population data can be found in the Schedule of Demographic and Economic Statistics.
2014
2018
2019
2020
2015
2021
See the Schedule of Tax Capacity,Market Value,and Estimated Actual Value of Taxable Property for property
value data.
Fiscal Year
Details regarding the City’s outstanding debt can be found in the notes to basic financial statements.
2016
2017
2013
of Property
2022
CITY OF NEW HOPE
Ratios of General Bonded Debt Outstanding
Last Ten Fiscal Years
Taxable Value
Estimated Actual
Percentage of
-119-
Estimated
Share of
Debt Overlapping
Outstanding Debt
Direct debt
City of New Hope*34,618,361$ 100.00 %34,618,361$
Overlapping debt
Hennepin County 1,018,886,023 1.12 11,411,523
ISD No. 281, Robbinsdale 188,583,455 19.87 37,471,533
Three Rivers Park District 47,650,901 1.55 738,589
Hennepin Regional RR Authority 85,464,798 1.12 957,206
Metropolitan Council 83,059,397 0.61 506,662
Total overlapping debt 1,423,644,574$ 51,085,513
Total direct and overlapping debt 85,703,874$
* Excludes debt payable from tax increment revenue and enterprise revenue.
Percentage
Governmental Unit
Source:
Applicable (1)
Note:
(1)The percentages of overlapping debt applicable is estimated using taxable market property values.Applicable
percentages were estimated by determining the portion of the county’s taxable market value that is within the
City’s boundaries and dividing it by the county’s total taxable market value.
Overlapping governments are those that coincide,at least in part,with the geographic boundaries of the City.This
schedule estimates the portion of the outstanding debt of those overlapping governments that is borne by the
residents and businesses of the City.This process recognizes that,when considering the City’s ability to issue and
repay long-term debt,the entire debt burden borne by the residents and businesses should be taken into account.
However,this does not imply that every taxpayer is a resident and,therefore,responsible for repaying the debt of
each overlapping government.
Hennepin County Taxpayer Services
CITY OF NEW HOPE
Direct and Overlapping Governmental Activities Debt
as of December 31, 2022
Estimated
-120-
Fiscal Year
2013 2014 2015 2016
Debt limit 36,715,865$ 37,058,019$ 40,035,532$ 42,928,174$
Total net debt applicable to the limit 839,948 696,627 2,719,528 5,497,493
Legal debt margin 35,875,917$ 36,361,392$ 37,316,004$ 37,430,681$
Total net debt applicable to the limit
as a percentage of the debt limit 2.29% 1.88% 6.79% 12.81%
Note:Under state finance law,the City’s outstanding general obligation debt should not exceed 3 percent of total market
property value.By law,the general obligation debt subject to the limitation may be offset by amounts set aside for
repaying general obligation bonds.
CITY OF NEW HOPE
Legal Debt Margin Information
Last Ten Fiscal Years
-121-
2017 2018 2019 2020 2021 2022
46,051,623$ 50,912,771$ 54,943,109$ 60,641,464$ 65,321,698$ 69,257,898$
25,516,878 34,249,431 38,595,992 36,361,673 33,238,704 31,624,540
20,534,745$ 16,663,340$ 16,347,117$ 24,279,791$ 32,082,994$ 37,633,358$
55.41% 67.27% 70.25% 59.96% 50.88% 45.66%
Market value 2,308,596,615$
Debt limit (3 percent of market value)69,257,898
Debt applicable to limit
General obligation bonds 34,618,361
Less amount available in debt service funds (2,993,821)
Total net debt applicable to the limit 31,624,540
Legal debt margin 37,633,358$
Legal Debt Margin Calculation for Fiscal Year 2022
-122-
(1)(2)Net
Gross Operating Available
Revenue Expenses Revenue Principal (4)Interest
7,901,855$ 6,573,932$ 1,327,923$ 344,000$ 98,588$ 300.04 %
7,887,948 7,270,310 617,638 371,000 103,685 130.12
8,039,067 7,925,903 113,164 201,000 97,854 37.87
8,738,270 6,629,232 2,109,038 202,000 172,262 563.52
9,181,674 6,850,851 2,330,823 293,503 228,142 446.82
10,247,826 7,479,247 2,768,579 394,266 232,928 441.42
10,292,470 7,408,536 2,883,934 515,326 251,673 376.00
11,287,052 8,203,328 3,083,724 525,110 245,526 400.15
12,227,593 8,563,424 3,664,169 2,197,368 166,584 155.00
12,011,441 8,908,298 3,103,143 715,473 143,036 361.46
(1)
(2)Operating expenses exclude depreciation/amortization.
(3)Revenues and expense include the Storm Water, Water Utility, Sewer Utility, and Ice Arena funds.
(4)Excludes principal paid with refunding bond proceeds.
Note:
Last Ten Fiscal Years
Pledged Revenue Coverage
CITY OF NEW HOPE
2019
2020
2018
Fiscal Year
Debt Service
Coverage
Revenue Bonds (3)
2014
2013
Details regarding the City’s outstanding debt can be found in the notes to basic financial statements.Operating
expenses do not include interest.
Gross revenues include interest and other nonoperating revenues.
2017
2016
2015
2021
2022
-123-
Per Capita
Personal Personal Median School
Population (1)Income (2)Income (3)Age (4)Enrollment (5)
20,904 58,898$ 1,231,203,792$ 39.4 12,126 4.0 %
20,812 60,601 1,261,228,012 39.4 12,390 2.9
21,225 63,901 1,356,298,725 39.4 12,313 2.8
21,600 65,231 1,408,989,600 39.4 12,404 2.8
21,545 67,427 1,452,714,715 39.4 12,011 3.5
21,790 70,067 1,526,759,930 39.4 12,304 2.7
22,376 71,067 1,590,195,192 39.4 12,237 2.7
21,986 76,552 1,683,072,272 36.4 12,397 8.6
21,870 79,183 1,731,732,210 36.4 12,319 2.3
21,870 85,505 1,869,994,350 37.4 12,007 2.8
(1)Provided by the Metropolitan Council. The most recent year is an estimate.
(2)
(3)
(4)
(5)
(6)Provided by the Bureau of Labor Statistics; U.S. Department of Labor. This figure is for all of Hennepin County.
2014
Calculated by multiplying the estimated population by the per capita personal income figure.
Provided by Independent School District No. 281, Robbinsdale, Minnesota.
U.S. Census Bureau.
2013
2015
2016
Provided by the Bureau of Economic Analysis; U.S. Department of Commerce. This figure is for all of Hennepin County.
2017
2018
2019
2020
2021
Sources:
2022
CITY OF NEW HOPE
Rate (6)
UnemploymentFiscal
Demographic and Economic Statistics
Last Ten Fiscal Years
Year
-124-
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Employees Rank Employees Rank
ISD No. 281, Robbinsdale 1,792 1 16.3 %2,200 1 19.4 %
Minnesota Masonic Home/
North Ridge Care Center 560 2 5.1 789 2 7.0
Hy-Vee, Inc.370 3 3.4 – – –
Horwitz 348 4 3.2 – – –
City of New Hope 338 5 3.1 – – –
Padagis 315 6 2.9 – – –
Saint Therese Home, Inc.286 7 2.6 650 3 5.7
YMCA 228 8 2.1 – – –
Liberty Diversified International 200 9 1.8 200 7 1.8
Intermediate District No. 287 199 10 1.8 – – –
Perrigo Company – – – 413 4 3.6
Welsh Navarre MN, LLC – – – 280 5 2.5
Coborn’s Delivers – – – 240 6 2.1
Dakota Growers Pasta – – – 200 8 1.8
Waymouth Farms, Inc.– – – 137 9 1.2
Parker – Hannifin Oildyne Division – – – 135 10 1.2
4,636 42.3 %5,244 46.3 %
Source:Minnesota Department of Employment and Economic Development
Employer Employment
CITY OF NEW HOPE
Employment
of Total City
Percentage
2013
Percentage
Current Year and Nine Years Ago
2022
of Total City
Principal Employers
-125-
Fiscal Year
2013 2014 2015 2016
Function
General government 16 14 13 13
Public safety
Police
Officers 31 33 35 33
Civilians 7 7 9 9
Public works 24 24 23 24
Culture and recreation 7 7 7 8
Total 85 85 87 87
Source: Various city departments
CITY OF NEW HOPE
Full-Time Equivalent City Government Employees by Function
Last Ten Fiscal Years
-126-
2017 2018 2019 2020 2021 2022
16 17 17 17 17 17
34 34 34 34 33 33
10 11 10 10 9 11
24 24 24 24 24 23
7 7 7 8 8 9
91 93 92 93 91 93
-127-
Fiscal Year
2013 2014 2015 2016
Function
– – 12 3
600 1,330 2,882 3,025
Culture and recreation
4,565 3,121 2,746 3,343
7,442 5,734 5,815 6,043
144,000 122,478 124,777 127,865
Golf course
Rounds of golf at the municipal course 16,782 16,431 18,175 20,375
Ice arena
Hours of ice time rental 3,739 3,734 3,683 3,567
Water
Water main breaks 30 27 21 19
Average daily consumption
(thousands of gallons)1,682 1,571 1,559 1,588
Sewer
Average daily treatment (thousands of gallons)1,500 2,200 1,670 1,800
Note:
Source:Various city departments
Public works
CITY OF NEW HOPE
Operating Indicators by Function
Last Ten Fiscal Years
Indicators are not available for the general government function.
Attendance at sponsored events
Street resurfacing (miles)
Potholes repaired
Program registration – adults
Program registration – youth
-128-
2017 2018 2019 2020 2021 2022
3 3 4 4 3 3
2,530 3,000 2,900 2,900 2,900 2,900
3,011 2,603 1,860 1,426 2,305 3,830
5,969 5,413 4,695 3,325 4,785 4,979
127,112 102,659 101,409 69,415 144,455 157,127
18,662 17,800 16,837 26,553 27,654 25,088
4,030 4,151 4,202 2,984 4,416 4,247
12 23 14 18 28 24
1,616 1,616 1,551 1,775 1,845 1,845
1,352 1,405 1,355 1,451 1,473 1,473
-129-
Fiscal Year
2013 2014 2015 2016
Function
Public safety
Police stations 1 1 1 1
Fire stations 3 3 3 3
Public works
Highways and streets 64.0 64.0 64.0 64.0
City streets (miles)8.5 8.5 8.5 8.5
State and county streets (miles)26.4 26.4 26.4 26.4
Sidewalks (miles)580.0 580.0 580.0 619.0
Streetlights 2.0 2.0 2.0 2.0
Railroad bridges 4.0 4.0 4.0 4.0
Culture and recreation
Parks 23 23 23 23
Swimming pools
Olympic 1 1 1 1
Recreational 1 1 1 1
Outdoor theatre 1 1 1 1
Tennis courts 17 17 17 17
Water
Water main (miles)63 63 63 64
Fire hydrants 690 690 690 690
Maximum daily capacity 21,000,000 21,000,000 21,000,000 21,000,000
Sewer
Sanitary sewer main (miles)74 74 74 75
Storm sewer lines (miles)56 56 56 56
Ice arenas 1 1 1 1
Golf courses 1 1 1 1
Source:Various city departments
CITY OF NEW HOPE
Capital Asset Statistics by Function
Last Ten Fiscal Years
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2017 2018 2019 2020 2021 2022
1 1 1 1 1 1
3 3 3 3 3 3
64.0 64.0 64.0 64.8 64.8 64.8
8.5 8.5 8.5 8.5 8.5 8.5
27.0 27.0 27.0 27.3 27.3 27.3
619.0 619.0 630.0 630.0 630.0 630.0
2.0 2.0 2.0 2.0 98.0 98.0
4.0 4.0 4.0 4.0 4.0 4.0
23 23 23 23 23 23
1 – – – 1 1
1 – – – 1 1
1 1 – – 1 1
17 17 17 17 9 9
64 64 64 65 65 65
690 690 690 716 716 716
21,000,000 21,000,000 21,000,000 21,000,000 21,000,000 21,000,000
75 75 75 75 75 75
56 56 56 57 57 57
1 1 1 1 1 1
1 1 1 1 1 1
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