2011 CAFRCITY OF NEW HOPE
HENNEPIN COUNTY, NHNNESOTA
COMPREHENSIVE ANNUAL FINANCIAL REPORT
FOR THE YEAR ENDED
DECEMBER 31, 2011
KIRK MCDONALD - CITY MANAGER
PREPARED BY: DEPARTMENT OF FINANCE
Member GFOA of U.S. and Canada
Published May 21, 2012
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CITY OF NEW HOPE, MINNESOTA
COMPREHENSIVE ANNUAL FINANCIAL REPORT
TABLE OF CONTENTS
FOR THE YEAR ENDED DECEMBER 31, 2011
INTRODUCTORY SECTION
Page No.
Letter of Transmittal from City Manager 7
Certificate of Achievement for Excellence in Financial Reporting 13
Organizational Chart 14
Elected Officials and Staff 15
FINANCIAL SECTION
Independent Auditor's Report 19
Management's Discussion and Analysis 21
Basic Financial Statements
Government -wide Financial Statements
Statement of Net Assets
33
Statement of Activities
34
Fund Financial Statements
Governmental Funds
108
Balance Sheet
38
Reconciliation of the Balance Sheet to the Statement of Net Assets
41
Statement of Revenues, Expenditures and Changes in Fund Balances
42
Reconciliation of the Statement of Revenues, Expenditures and
113
Changes in Fund Balances to the Statement of Activities
45
General Fund
115
Statement of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual
46
Economic Development Authority Fund
Statement of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual
47
Proprietary Funds
Statements of Net Assets
48
Statements of Revenues, Expenses and Changes in Fund Net Assets
56
Statements of Cash Flows
60
Fiduciary Funds
Statement of Fiduciary Net Assets
68
Notes to the Financial Statements
69
Required Supplementary Information
Schedule of Funding Progress for the Postemployment Benefit Plan 102
Combining and Individual Fund Financial Statements and Schedules
Nonmajor Governmental Funds
Combining Balance Sheet
104
Combining Statement of Revenues, Expenditures and Changes in Fund Balances
105
Nonmajor Special Revenue Funds
Subcombining Balance Sheet
108
Subcombining Statement of Revenues, Expenditures and Changes in Fund Balances
110
Schedule of Revenues, Expenditures, and Changes in Fund Balances — Budget and Actual
Community Development Fund
112
Safety Camp Fund
113
Storm Sewer Fund
114
Solid Waste Management Fund
115
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CITY OF NEW HOPE, MINNESOTA
COMPREHENSIVE ANNUAL FINANCIAL REPORT
TABLE OF CONTENTS - CONTINUED
FOR THE YEAR ENDED DECEMBER 31, 2011
Page No.
Combining and Individual Fund Financial Statements and Schedules - Continued
144
Nonmajor Debt Service Funds
146
Subcombining Balance Sheet
118
Subcombining Statement of Revenues, Expenditures and changes in Fund Balances
119
Nonmajor Capital Projects Funds
154
Subcombining Balance Sheet
122
Subcombining Statement of Revenues, Expenditures and changes in Fund Balances
123
General Fund
158
Schedule of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual
124
Internal Service Funds
162
Combining Statements of Net Assets (Liabilities)
132
Combining Statements of Revenues, Expenses and
Changes in Fund Net Assets (Liabilities)
134
Combining Statements of Cash Flows
136
Agency Fund
169
Statement of Changes in Assets and Liabilities
138
Supplementary Information (Unaudited)
Summary Financial Report
Revenues and Expenditures for General Operations - Governmental Funds 140
STATISTICAL SECTION (UNAUDITED)
Financial Trends
Net Assets by Component
144
Changes in Net Assets
146
Governmental Activities Tax Revenues by Source
151
Fund Balances of Governmental Funds
152
Changes in Fund Balances of Governmental Funds
154
Revenue Capacity
General Government Tax Revenues by Source
157
Tax Capacity, Market Value and Estimated Actual Value of Taxable Property
158
Property Tax Capacity Rates - Direct and Overlapping Governments
160
Principal Property Taxpayers
162
Property Tax Levies and Collections
165
Debt Capacity
Ratios of Outstanding Debt by Type
166
Ratios of General Bonded Debt Outstanding
168
Computation of Direct and Overlapping Debt
169
Legal Debt Margin Information
170
Pledged Revenue Coverage
172
Demographic and Economic Information
Demographic and Economic Statistics
173
Principal Employers
174
Operating Information
Full -Time Equivalent City Government Employees by Function
176
Operating Indicators by Function
179
Capital Asset Statistics by Function
180
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INTRODUCTORY SECTION
CITY OF NEW HOPE
NEW HOPE, MINNESOTA
FOR THE YEAR ENDED
DECEMBER 31, 2011
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May 21, 2012
Honorable Mayor and City Council
City of New Hope
4401 Xylon Avenue North
New Hope, MN 55428 -4898
The Comprehensive Annual Financial Report (CAFR) of the City of New Hope, Minnesota (the City), for the fiscal year ended
December 31, 2011, 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 20,339. The City is 5.6 square miles in area and is
substantially developed with the exception of just under 12 acres of property which consists primarily of residential zoned property.
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.
CITY OF 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 and fiduciary funds, as defined in the notes to basic financial statements.
The City maintains a system of internal control that provides a 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.
The City provides a full range of municipal services, including:
improvements, street maintenance, sanitary and storm sewer collection,
services, and general administrative services.
police and fire protection, culture and recreation, public
water distribution, planning, zoning and building inspection
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 440 commercial /industrial /service businesses in the City, and the major employers are listed as follows:
Major Employers
Products /Services
Employees
Independent School District No. 281
Education
2,200
Minnesota Masonic Home/North Ridge Care Center
Skilled nursing care facility
789
St. Therese Home of New Hope
Skilled nursing care facility
650
Perrigo Company
Pharmaceutical and medicine manufacturing
413
Navarre Corporation Computers
Peripherals, and software
280
Coborn's Delivers
Direct selling establishments
240
Liberty Diversified Internantional
Stationery supplies
200
Dakota Growers Pasta Company
Macaroni and spaghetti
200
Waymouth Farms, Inc.
Salted and roasted nuts and seeds
137
Parker — Hannifin Oildyne Division
Fluid power cylinders and actuators
135
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.
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: I retaining existing businesses, 21 assisting with
expansions, 31 attracting new businesses to vacant available buildings, 41 attracting new construction to a limited number of available
vacant sites, and 51 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, a monthly business forum was established to share information and improve communications between businesses and the
City and the forum continued through 2011. In 2011, $42,896,364 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. The following is a brief summary of the major projects that
contributed to the success of 2011.
PLANNING AND DEVELOPMENT
The following planning and development activities occurred in 2011:
New Hope Transit Oriented Development Study (TOD) —
The city has partnered with Hennepin County to conduct a major Transit Oriented Development Study in the City Center ( Winnetka
and 42 Avenues North) area of the city. The goal is to create a framework for future redevelopment in the City Center Area.
Commercial/Industrial
Commercial/ Industrial redevelopment consisted of $5.8 million in total development including; Lutonix - $1,100,000, CVS -
$900,000, 5121 Winnetka - $713,000 and Can Do Canines - $700,000. Additionally, the 5121 Winnetka project received a $443,150
TBRA grant for cleanup of lead contamination.
Educational
IDS 287 developed their new North Education Center at a value of $25,674,703 for the three story school.
Housing
The City's commitment to maintaining its housing stock is supported through a variety of cooperative projects and programs.
Approximately $2.82 million was reinvested in the City's housing stock in 2011 for private home 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 2011 continued the expenditure of previously allocated CDBG funds.
ii. The city reauthorized its scattered site housing program with an allocation of $99,000 in CDBG funds.
b. Greater Metropolitan Housing Corporation (GMHC) in 2011($5,000).
c. Northwest Suburban Remodeling Fair - annual remodeling fair sponsored by the City and the cities of Brooklyn
Center, Brooklyn Park, Crystal, Maple Grove, Plymouth, Robbinsdale and Osseo.
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2. Housing maintenance programs:
a. Code compliance inspections - 252 inspections completed in 2011.
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 459 single family and two multi - family rental units were registered with the City.
iii. A total of 3,582 multi - family rental units were registered with the City.
c. Multifamily Property Manager's Association - quarterly meetings.
3. Metropolitan Council Livable Communities Act - annually renewed by the City.
PARKS AND RECREATION
The City provides the residents with a vast array of park amenities and recreation opportunities at an affordable cost. The City's
swimming pool continues to maintain strong attendance numbers, as well as providing a convenient training facility for team
swimming practices. The ice arena has year -round use of ice time for youth, adult recreational, and league hockey. The facility also
rents ice time to the Olympic Development Program, a local training group.
PROPERTY TAX PROCESS AND COST CONTAINMENT
Preliminary tax levies have to be sent to the county auditor by September 15th. 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.
The City has established several cost saving programs over the years. The central garage rents out equipment to departments as needed
and, therefore, eliminates the duplication of ownership of equipment between departments. The information technology fund accounts
for government -wide computer applications, equipment maintenance and replacement, and professional and technical support services
to all city departments.
The City and the City of Crystal merged and consolidated their fire departments in 1998. The first full calendar year of operations was
completed in 1999. Known as the West Metro Fire- Rescue District, the fire department serves both cities from three fire stations,
providing cost effective and professional fire prevention and suppression services.
To maximize resources and reduce costs, the City participates in several additional agreements with other cities, the local independent
school district, and Hennepin County, sharing service delivery such as: police dispatching, animal control, gymnasium facilities, and
purchasing activities. The City participates with the cities of Brooklyn Center and Crystal in a cooperative recycling program. During
1993, the City entered into a program with the City of Crystal in which a season swimming pool ticket purchased at either city can be
used at both pools. These are not joint ventures, but contractual operations between other governmental units.
OTHER PERTINENT INFORMATION
Independent Audit - As required by Minnesota statute, 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
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 a long -term plan to City Council in 2012 that will highlight the tax effect of
major capital and operating decisions. This will also be an important document when preparing future budgets.
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AWARDS AND ACKNOWLEDGMENTS
The Certificate of Achievement for Excellence in Financial Reporting - The GFOA awarded a Certificate of Achievement for
Excellence in Financial Reporting to the City for its CAFR for the fiscal year ended December 31, 2010. In order to be awarded a
Certificate of Achievement for Excellence in Financial Reporting, a government must publish an easily readable and efficiently
organized comprehensive annual financial report. This report must satisfy both accounting principles generally accepted in the United
States of America and applicable legal requirements. A Certificate of Achievement for Excellence in Financial Reporting is valid for a
period of one year only.
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, Eick and Meyers, LLP (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,
Kirk McDonald
City Manager
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Certificate of
Achievement
for Excellence
in Financial
Reporting
Presented to
City of New Hope
Minnesota
For its Comprehensive Annual
Financial Report
for the Fiscal Year Ended
December 31, 2010
A Certificate of Achievement for Excellence in Financial
Reporting is presented by the Government Finance Officers
Association of the United States and Canada to
government units and public employee retirement
systems whose comprehensive annual iinancial
reports (CAFRs) achieve the highest
standards in government accounting
and financial reporting.
President
R/.
Executive Director
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' Residents
C. ,;y of Nev-. Hope
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Planning Commission i
Policy
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HRA Board
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Citizen Advisory
~ i Commission
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City Manager
I
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—� Human Rights Commission i
I
I
Chief Administrator
Government Relations
I i i
I
Communications/Media
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I
Budget
Human Services
Council Relations
i
I— —i Personnel Board i
I
I
Emergency Management
g ement
Fire Board
EDA Executive Director
HRA Executive Director
I
I
---- •----------- - - - - -, I
Wesi Metro Fire - Rescue District, I I
� ' I
Fire Suppression i
i Fire Prevention i I
Emergency Mgt. Coord. i I
Rescue i I
I i Explorers i I
I L --------------- - - - - --
City of New Hope
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-+ City Attorney r
111 - - - - - - - - - - -. I - - - -,
L —� City Engineer
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I
I
r Fiscal Advisor t
- - - - - - - - - - - - - - -
,
City Planner r
City Manager
Comm. Development
Finance
Human Resources
Ciiy Clerk
Ciiy Hall
Council Relations
Elections
Safety
Licensing
Info Technology
Communications
Inspections
Permits
Housing
Econ. Development
Planning /Zoning
Finance /Accounting
Payroll
Treasury
.audit
Risk Mgmt /Insurance
Parks & Recreation
Recreation
Parks
Recreation Facilities
Forestry
Police
Police
Investigation
Community Services
Animal Control
Reserves
Explorers
Crime Prevention
School Liaison
Public Works
Utilities
Utility Billing
Central Garage
Streets
Parks Maintenance
CITY OF NEW HOPE
ELECTED AND APPOINTED OFFICIALS
FOR THE YEAR ENDED DECEMBER 31, 2011
ELECTED
Name Title
Kathi Hemken Mayor
John Elder Council Member
Andrew Hoffe Council Member
Eric Lammle Council Member
Daniel Stauner Council Member
APPOINTED
Name Title
Kirk McDonald
City Manager
Guy Johnson
Director of Public Works
Curtis Jacobsen
Director of Community Development
Susan Rader
Director of Parks and Recreation
Tim Fournier
Director of Police
Rich Johnson
Human Resources Manager
Valerie Leone
City Clerk
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Term Expires
01/02/13
01/02/15
01/02/13
01/02/13
01/02/15
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FINANCIAL SECTION
CITY OF NEW HOPE
NEW HOPE, MINNESOTA
FOR THE YEAR ENDED
DECEMBER 31, 2011
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MMKR
CERTIFIE[ PUBLIC
ACCOIIN'I'ANTS
INDEPENDENT AUDITOR'S REPORT
To the City Council
City of New Hope, Minnesota
PRINCIPALS
Thomas M. Nlonraguv, CPA
"1"Inomas A. Karnowski, CPA
Paul A. Radosevich, CPA
William J. Lauer, CPA
James H. Eichren, CPA
Aaron J. Nielsen, CPA
Victoria L. Holinka, CPA
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, 2011, which collectively comprise the
City's basic financial statements as listed in the table of contents. These financial statements are the
responsibility of the City's management. Our responsibility is to express opinions on these financial
statements based on our audit. The prior year partial comparative information presented has been derived
from the City's 2010 financial statements, and in our report dated May 12, 2011, we expressed
unqualified opinions on the respective financial statements of the governmental activities, the
business -type activities, each major fund, and the aggregate remaining fund information.
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. Those standards require that we plan and perform
the audit to obtain reasonable assurance about whether the financial statements are free of material
misstatement. An audit includes consideration of internal control over financial reporting as a basis for
designing 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 over financial reporting. Accordingly, we
express no such opinion. An audit also includes examining, on a test basis, evidence supporting the
amounts and disclosures in the financial statements, assessing the accounting principles used and the
significant estimates made by management, as well as evaluating the overall financial statement
presentation. We believe that our audit provides a reasonable basis for our opinions.
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 as of December 31, 2011, and the respective
changes in financial position and cash flows, where applicable thereof, and the respective budgetary
comparisons for the General Fund and major special revenue fund for the year then ended, in conformity
with accounting principles generally accepted in the United States of America.
As discussed in Note 1 of the notes to basic financial statements, the City has implemented Governmental
Accounting Standards Board (GASB) Statement No. 54, "Fund Balance Reporting and Governmental
Fund Type Definitions" during the year ended December 31, 2011.
The financial statements include prior year partial comparative information, which does not include all of
the information required in a presentation in conformity with accounting principles generally accepted in
the United States of America. Accordingly, such information should be read in conjunction with the
City's financial statements for the year ended December 31, 2010, from which it was derived.
(continued)
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Malloy, Montague, Karnowski, Radosevich, & Co., P.A.
5353 Wayzata Boulcuard • Suitc 410 , Minncapolis, MN 55416 • Tcicphonc: 952- 545.0424 • Tcicfax: 952. 545 -0569 • www.mmkr.com
In accordance with Government Auditing Standards, we have also issued a report dated May 21, 2012 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 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 internal control over
financial reporting or on compliance. That report is an integral part of an audit performed in accordance
with Government Auditing Standards, and should be considered in assessing the results of our audit.
Accounting principles generally accepted in the United States of America require that the Management's
Discussion and Analysis and the Schedule of Funding Progress for the Postemployment Benefit Plan, as
listed in the table of contents, be presented to supplement the basic financial statements. Such
information, although not a part of the basic financial statements, is required by GASB, who considers it
to be an essential part of financial reporting for placing the basic financial statements in an appropriate
operational, economic, or historical context. We have applied certain limited procedures to the required
supplementary information 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.
Our audit was conducted for the purpose of forming opinions on the financial statements that collectively
comprise the City's basic financial statements. The introductory section, combining and individual fund
financial statements and schedules, supplementary information, and statistical section, as listed in the
table of contents, are presented for purposes of additional analysis and are not required parts of the basic
financial statements. The combining and individual fund statements and schedules are the responsibility
of management and were derived from and relate directly to the underlying accounting and other records
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 information is fairly stated, in all material respects, in relation to the basic
financial statements as a whole. The introductory section, supplementary information, and statistical
section have not been subjected to the auditing procedures applied in the audit of the basic financial
statements and, accordingly, we express no opinion on them.
W ny ', (Cu t,wo w J �o-dlo a �u.c'cC„_ � Co. I P. A .
May 21, 2012
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Management Discussion & Analysis
As management of the City of New Hope, Minnesota, (the City), we offer readers of the City's financial statements this narrative
overview and analysis of the financial activities of the City for the fiscal year ended December 31, 2011. We encourage readers to
consider the information presented here in conjunction with additional information that we have furnished in our letter of transmittal,
which starts on page 7 of this report.
Financial Highlights
• The assets of the City exceeded its liabilities at the close of the most recent fiscal year by $63,811,795 (net assets). Of this
amount, $26,050,252 (unrestricted net assets) may be used to meet the City's ongoing obligations to citizens and creditors.
• The City's total net assets increased by $3,535,440.
• As of the close of the current fiscal year, the City's governmental funds reported combined ending fund balances of $24,573,244,
a decrease of $1,962,687 in comparison with the prior year.
• At the end of the current fiscal year, unassigned fund balance for the General fund was $4,920,846 (49.9 percent) of total General
fund 2011 expenditures and transfers out.
• The City's total noncurrent liabilities increased by $1,950,497 (19.2 percent) during the current fiscal year. The key factor in this
increase was the issuance of new bonds during 2011.
Overview of the Financial Statements
This discussion and analysis is intended to serve as an introduction to the City's basic financial statements. The City's basic financial
statements are comprised of three components: 1) government -wide financial statements, 2) fund financial statements, and 3) notes to
the financial statements. This report also contains other supplementary information in addition to the basic financial statements.
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Figure A -1 shows how the various parts of this annual report are arranged and related to one another.
Figure A -1
Annual Report Format
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X44age "ceet d Basic Required
D &cuJe&q Financial Supplementary
44d Statements Information
rfcxa?.y.¢id
-- - - - - - - - - - - - - - - - - - -
Government -Wide
Fund ated
Financial
Financial
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Statements
Statements
fe�utycta8
$tater�ce�te
Summary Detail
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 a private - sector business.
The statement of net assets presents information on all of the City's assets and liabilities, with the difference between the two reported
as net assets. Over time increases or decreases in net assets 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 government's net assets changed during the most recent fiscal year.
All changes in net assets are reported as soon as the underlying event giving rise to the change occurs, regardless of the timing of
related cashflows. Thus, revenues and expenses are reported in the statement for some items that will only result in cash flows in
future fiscal periods (e.g., 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 of the City 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.
The government -wide financial statements start on page 33 of this report.
Fund financial statements. A fund is a grouping of related accounts that is used to maintain control over resources that have been
segregated for specific activities or objectives. The City, like other state and 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 three categories:
governmental funds, proprietary funds, and fiduciary funds.
-22-
Governmental funds. Governmental funds are used to 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, as well as on balances of spendable resources available at
the end of the fiscal year. 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 fund balance sheet and the governmental fund statement of revenues, expenditures, and changes in
fund balances provide a reconciliation to facilitate this 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, Temporary Financing, and Energy Conservation Project 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 non -major governmental funds is provided in the form of combining statements
elsewhere in this report.
The City adopts annual appropriated budgets for its General fund and several special revenue funds. A budgetary comparison
statement has been provided for these funds to demonstrate compliance with the adopted budgets.
The basic governmental fund financial statements start on page 38 of this report.
Proprietary fund 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 the sewer utility, water utility, golf course, ice arena, storm
water, and street lighting funds, all of which are considered to be major funds of the City. All 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.
The basic proprietary fund financial statements start on page 48 of this report.
Fiduciary funds. These funds are used to account for resources held for the benefit of parties outside the City. Fiduciary funds are not
reflected in the government -wide financial statements because the resources of those funds are not available to support the City's own
programs. The accounting used for fiduciary funds is much like that used for proprietary funds.
The basic fiduciary fund financial statements start on page 68 of this report.
Notes to the financial statements. The notes provide additional information that is essential to a full understanding of the data
provided in the government -wide and fund financial statements. The notes to the financial statements start on page 69 of this report.
Other information. In addition to the basic financial statements and accompanying notes, this report also presents certain required
supplementary information concerning the City's progress in funding its obligation to provide other postemployment benefits to its
employees. Required supplementary information starts on page 102 of this report.
The combining statements referred to earlier, in connection with nonmajor governmental funds and internal service funds, are
presented immediately following the required supplementary information. Combining and individual fund statements and schedules
start on page 104 of this report.
-23-
Government -wide Financial Analysis
As noted earlier, net assets may serve over time as a useful indicator of a government's financial position. In the case of the City,
assets exceeded liabilities by $63,811,795 at the close of the most recent fiscal year.
A portion of the City's net assets (49.7 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 provided from other sources, since
the capital assets themselves cannot be used to liquidate these liabilities.
City of New Hope's Net Assets
An additional portion of the City's net assets, $6,018,734 represents resources that are subject to external restrictions on how they may
be used. The remaining balance of unrestricted net assets ($26,050,252) may be used to meet the government'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 assets, as well as for its
separate governmental and business -type activities.
-24-
Governmental Activities
Business -type Activities
Increase
Increase
2011
2010
(Decrease)
2011
2010
(Decrease)
Assets
Current and other assets
$ 36,590,321
$ 37,306,228
$ (715,907)
$ 3,891,574
$ 3,534,787
$ 356,787
Capital assets, net of depreciation
23,719,133
18,531,181
5,187,952
13,716,150
12,347,186
1,368,964
Total assets
60,309,454
55,837,409
4,472,045
17,607,724
15,881,973
1,725,751
Liabilities
Other liabilities
1,630,902
901,018
729,884
373,476
391,501
(18,025)
Noncurrent liabilities
9,715,281
7,190,597
2,524,684
2,385,724
2,959,911
(574,187)
Total liabilities
11,346,183
8,091,615
3,254,568
2,759,200
3,351,412
(592,212)
Net assets
Invested in capital assets,
net of related debt
20,399,936
16,495,175
3,904,761
11,342,873
9,989,405
1,353,468
Restricted
6,018,734
9,279,142
(3,260,408)
-
-
-
Unrestricted
22,544,601
21,971,477
573,124
3,505,651
2,541,156
964,495
Total net assets
$ 48,963,271
$ 47,745,794
$ 1,217,477
$ 14,848,524
$ 12,530,561
$ 2,317,963
An additional portion of the City's net assets, $6,018,734 represents resources that are subject to external restrictions on how they may
be used. The remaining balance of unrestricted net assets ($26,050,252) may be used to meet the government'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 assets, as well as for its
separate governmental and business -type activities.
-24-
Governmental activities. Governmental activities increased the City's net assets by $1,217,477.
Business -type activities. The net assets of business -type activities increased by $2,317,963.
The following table indicates the changes in net assets for the City's governmental and business -type activities:
City of New Hope's Changes in Net Assets
Governmental Activities Business -type Activities
Increase Increase
2011 2010 (Decrease) 2011 2010 (Decrease)
Revenues
Program revenues
Charges for services
Operating grants and contributions
Capital grants and contributions
General revenues
Taxes
Property taxes
Tax increments
Franchise taxes
Grants and contributions not
restricted to specific programs
Unrestricted investment earnings
Gain on sale of capital assets
Total revenues
Expenses
General government
Public safety
Public works
Culture and recreation
Economic development
Interest on long -term debt
Sewer utility
Water utility
Golf course
Ice arena
Storm water
Street lighting
Total expenses
$ 2,052,357 $ 1,870,683 $ 181,674 $ 7,623,726 $ 7,495,808 $ 127,918
783,382 1,356,292 (572,910) 24,031 470,183 (446,152)
1,110,762 787,047 323,715 111,106 30,739 80,367
8,784,948 8,730,979 53,969 - - -
1,400,163 1,408,256 (8,093) - - -
439,795 430,494 9,301 - - -
87,206 79,529 7,677 - - -
745,484 337,312 408,172 71,089 17,400 53,689
13,568 22,930 (9,362) - - -
15,417,665 15,023,522 394,143 7,829,952 8,014,130 (184,178)
1,841,145
2,552,425
(711,280)
-
-
-
6,129,860
5,864,775
265,085
-
-
-
1,795,189
1,625,959
169,230
-
-
-
1,882,279
1,899,105
(16,826)
-
-
-
536,433
192,431
344,002
-
-
-
248,174
252,224
(4,050)
-
-
-
-
-
-
2,070,951
1,928,845
142,106
-
-
-
3,535,160
2,915,757
619,403
-
-
322,679
346,345
(23,666)
-
-
-
746,218
712,153
34,065
-
-
-
490,336
430,899
59,437
-
-
-
113,753
104,099
9,654
12,433,080 12,386,919 46,161 7,279,097 6,438,098 840,999
Changes in net assets before transfers
2,984,585
2,636,603
347,982
550,855
1,576,032
(1,025,177)
Transfers
(1,767,108)
91,129
(1,858,237)
1,767,108
(91,129)
1,858,237
Change in net assets
1,217,477
2,727,732
(1,510,255)
2,317,963
1,484,903
833,060
Net assets, January 1
47,745,794
45,018,062
2,727,732
12,530,561
11,045,658
1,484,903
Net assets, December 31
$ 48,963,271
$ 47,745,794
$ 1,217,477
$ 14,848,524
$ 12,530,561
$ 2,317,963
-25-
Governmental activities.
Expenses - The following chart illustrates the City's expenses and program revenues for its governmental activities:
Expenses and Program Revenues - Governmental Activities
$6,500,000
$6,000,000
$5,500,000
$5,000,000
$4,500,000
$4,000,000
$3,500,000
$3,000,000
$2,500,000
$2,000,000
$1,500,000
$1,000,000
$500,000
$-
General Public safety Public works Culture and Economic Interest on long -
government recreation development term debt
■ Expenses ■ Program revenues
Revenues - The following chart illustrates the City's revenue by source for its governmental activities:
Revenues by Source - Governmental Activities
Property taxes Tax increments
57.0% 9.1% Franchise taxes
2.9%
Grants and
contribution,
unrestricted
0.6%
Unrestricted investment
Capital grants and earnmgs 4 8%
contributions
7.2%
Operating grants and Crain on sale of capital
contributions assets
Charges for services 0.1%
13.2%
-26-
Business -type activities. Below are the graphs showing the business -type activities revenue and expense comparisons.
Expense and Program Revenues - Business -type Activities
$4,000,000
$3,500,000
$3,000,000
$2,500,000
$2,000,000
$1,500,000
$1,000,000
$500,000
IN
Sewer utility Water utility Golf course Ice arena Storm water Street lighting
■ Expenses ■ Program revenues
Revenue Sources - Business -type Activities
Unrestricted
investment earnings
n ooi
Charges for services
97.4%
Capital grants and
contributions
1.4%
-27-
Operating grants and
contributions
0.3%
Financial Analysis of the Government's Funds
As noted earlier, the City uses fund accounting to ensure and demonstrate compliance with finance - related legal requirements.
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 $24,573,244, a decrease
of $1,962,687 in comparison with the prior year. Approximately 20.0 percent of this total amount, $4,920,846, constitutes unassigned
fund balance, which is available for spending at the City's discretion. The remainder of fund balance is not available for new spending
because it is either 1) nonspendable ($14,366), 2) restricted ($7,559,164), 3) committed ($4,666,447), or 4) assigned ($7,412,421).
Fund Balance December 31, Increase
Funds 2011 2010 (Decrease)
General $ 4,935,212 $ 4,591,600 $ 343,612
The General fund is the chief operating fund of the City. As a measure of the General fund's liquidity, it may be useful to compare fund balance to
total fund expenditures and transfers out. Unassigned fund balance represents 49.9 percent of total 2011 expenditures and transfers out.
Economic Development Authority $ 4,479,550 $ 4,222,347 $ 257,203
The increase in fund balance is partly due to net transfers of $168,600 into the fund.
HRA Construction $ 5,554,293 $ 4,550,465 $ 1,003,828
This fund accounts for the activity within the City's Tax Increment Financing (TIF) Districts, less resources accumulated elsewhere for TIF related
long -term obligations. The increase in fund balance is a result of unspent TIF revenues identified for future projects.
Street Infrastructure $ 1,986,543 $ 3,619,017 $ (1,632,474)
This fund accounts for street improvements throughout the City. The decrease in fund balance is a result of roughly $3.8 million in project costs.
Temporary Financing $ 3,007,417 $ 2,518,850 $ 488,567
The increase in fund balance is due to net transfers of $972,696 into the fund.
Energy Conservation Project $ 2,147,900 $ - $ 2,147,900
At year -end, this fund has $2,052,073 cash with fiscal agent, representing unspent bonds proceeds for the project.
Proprietary funds. The City's proprietary funds provide the same type of information found in the government -wide financial
statements, but in more detail. At the end of the year, unrestricted net assets of the enterprise funds amounted to $4,164,502. Other
factors concerning the finances of these funds have already been addressed in the discussion of the City's business -type activities.
General Fund Budgetary Highlights
Budget amendments were made during the year to reduce the anticipated intergovernmental revenue and current expenditures across
all functions as well as capital outlay. In addition, budget amendments were made to increase anticipated revenues within licenses and
pem7its, charges for services, fines and forfeitures, and miscellaneous revenues. Both the original and final budgets called for no
change to fund balance. Actual revenues were over budget by $109,083, and expenditures were under budget by $239,109.
-28-
Capital Asset and Debt Administration
Capital assets. The City's investment in capital assets for its governmental and business type activities as of December 31, 2011, was
$37,435,283 (net of accumulated depreciation). This investment in capital assets includes land, buildings and system improvements,
vehicles and equipment, park facilities, roads, highways, and bridges. The total increase in the City's investment in capital assets for
the current fiscal year was 21.2 percent.
Major capital asset events during the current fiscal year consisted of completion of the Winnetka Avenue infrastructure, Bass Lake
Road water main improvement, 45 Avenue pond, and 2009 lighted field improvement projects. Additional projects included the
renovation of the Lions Park improvements, Northwood parking lots, Virginia Avenue infrastructure and the Energy savings project.
City of New Hope's Capital Assets
(net of depreciation)
Additional information on the City's capital assets can be found in Note 3C starting on page 83 of this report.
Long -term debt. At the end of the current fiscal year, the City had total bonded debt outstanding of $11,536,286. Of this amount
$1,259,247 will be paid from general property taxes and $4,410,000 from redevelopment district tax increments. Lease revenue bonds
were issued in 2011 and had an outstanding balance at year -end of $3,505,000. The remaining $2,362,039 of outstanding bonds at
year end were revenue bonds, for which the City has pledged revenue streams from the sewer utility, water utility, and storm water for
all principal and interest payments due on these bonds.
The Debt Service funds have total fund balance of $465,243, all of which is restricted for the payment of debt service. The City has
intentionally shifted the philosophy for financing major street improvements away from debt financing to the pay -as- you -go
philosophy. The City established the Street and Park Infrastructure capital projects funds in 2001 with dedicated portions of the
property tax levy, thereby eliminating this type of debt issuance.
City of New Hope's Outstanding Debt
Governmental Activities Business -type Activities
Increase Increase
2011 2010 (Decrease) 2011 2010 (Decrease)
G.O. special assessment bonds
Governmental Activities
$ 775,000
Business -type Activities
G.O. bonds and certificates
1,259,247
1,296,006
(36,759) - - -
Increase
4,410,000
4,605,000
Increase
Lease revenue bonds
2011
2010
(Decrease)
2011
2010
(Decrease)
Land
$ 994,268
$ 994,268 $
-
$ 485,042
$ 485,042 $
-
Buildings and structures
4,364,197
4,614,974
(250,777)
3,409,609
3,532,432
(122,823)
Vehicles and equipment
2,172,922
2,101,082
71,840
784,692
889,125
(104,433)
Improvements other than
buildings
9,932,550
9,206,129
726,421
7,105,905
6,446,689
659,216
Construction in progress
6,255,196
1,614,728
4,640,468
1,930,902
993,898
937,004
Total
$ 23.719.133
$ 18.531.181 $
5.187.952
$ 13.716.150
$ 12.347.186 $
1.368.964
Additional information on the City's capital assets can be found in Note 3C starting on page 83 of this report.
Long -term debt. At the end of the current fiscal year, the City had total bonded debt outstanding of $11,536,286. Of this amount
$1,259,247 will be paid from general property taxes and $4,410,000 from redevelopment district tax increments. Lease revenue bonds
were issued in 2011 and had an outstanding balance at year -end of $3,505,000. The remaining $2,362,039 of outstanding bonds at
year end were revenue bonds, for which the City has pledged revenue streams from the sewer utility, water utility, and storm water for
all principal and interest payments due on these bonds.
The Debt Service funds have total fund balance of $465,243, all of which is restricted for the payment of debt service. The City has
intentionally shifted the philosophy for financing major street improvements away from debt financing to the pay -as- you -go
philosophy. The City established the Street and Park Infrastructure capital projects funds in 2001 with dedicated portions of the
property tax levy, thereby eliminating this type of debt issuance.
City of New Hope's Outstanding Debt
Governmental Activities Business -type Activities
Increase Increase
2011 2010 (Decrease) 2011 2010 (Decrease)
G.O. special assessment bonds
$ -
$ 775,000
$ (775,000) $ - $ - $ -
G.O. bonds and certificates
1,259,247
1,296,006
(36,759) - - -
G.O. tax increment bonds
4,410,000
4,605,000
(195,000) - - -
Lease revenue bonds
3,505,000
-
3,505,000 - - -
G.O. revenue bonds
-
-
- 2,362,039 2,933,025 (570,986)
Capital leases payable
-
-
- 11,238 19,756 (8,518)
Compensated absences
470,152
475,772
(5,620) - - -
Other postemployment benefits
70,882
38,819
32,063 12,447 7,130 5,317
Total $ 9,715,281 $ 7,190,597 $ 2,524,684 $ 2,385,724 $ 2,959,911 $ (574,187)
The City achieved an "AA" rating from Standard and Poor's. Additional information on the City's long -tern debt can be found in
Note 3E starting on page 87 of this report.
-29-
Economic Factors and Next Year's Budgets and Rates
• User charges have been increased to account for various utility improvements scheduled for 2012 and beyond.
• The overall tax levy had no increase in 2012.
• Management provided a long -term plan to City Council in 2012 that will highlight the tax effect of major capital and operating
decisions. This will also be an important document when preparing future budgets.
All of these factors were considered in preparing the City's budget for the 2012 fiscal year.
Requests for Information
This 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 finance department, City of New Hope, 4401 Xylon Avenue North, New Hope, Minnesota 55428.
-30-
GOVERNMENT -WIDE FINANCIAL STATEMENTS
CITY OF NEW HOPE
NEW HOPE, MINNESOTA
FOR THE YEAR ENDED
DECEMBER 31, 2011
-31-
THIS PAGE IS LEFT BLANK
INTENTIONALLY
-32-
CITY OF NEW HOPE, MINNESOTA
STATEMENT OF NET ASSETS
DECEMBER 31, 2011
The notes to the financial statements are an integral part of this statement.
-33-
Governmental
Business -type
Activities
Activities
Total
ASSETS
Cash and temporary investments
$ 27,390,369
$ 3,322,944
$ 30,713,313
Cash with fiscal agent
2,052,073
-
2,052,073
Receivables
Unremitted tax collections
19,414
-
19,414
Delinquent taxes
174,958
-
174,958
Accrued interest
152,642
-
152,642
Accounts
150,279
990,935
1,141,214
Loans
450,922
-
450,922
Special assessments
494,618
191,764
686,382
Internal balances
1,003,851
(1,003,851)
-
Due from other governments
454,570
124,673
579,243
Inventory
28,918
39,762
68,680
Prepaid items
14,366
-
14,366
Land held for resale
2,433,162
-
2,433,162
Unamortized deferred charges
169,333
56,838
226,171
Investment in joint ventures
1,600,846
168,509
1,769,355
Capital assets
Land and construction in progress
7,249,464
2,415,944
9,665,408
Depreciable assets (net of accumulated deprecation)
16,469,669
11,300,206
27,769,875
TOTAL ASSETS
60,309,454
17,607,724
77,917,178
LIABILITIES
Accrued salaries payable
264,138
33,800
297,938
Accounts and contracts payable
1,218,457
205,706
1,424,163
Due to other governments
50,144
112,146
162,290
Accrued interest payable
95,380
21,824
117,204
Deposits payable
2,783
-
2,783
Noncurrent liabilities
Due within one year
Compensated absences payable
470,152
-
470,152
Lease payable
-
8,307
8,307
Bonds payable
330,000
334,000
664,000
Due in more than one year
Other postemployment benefits payable
70,882
12,447
83,329
Lease payable
-
2,931
2,931
Bonds payable, net of unamortized discounts
8,844,247
2,028,039
10,872,286
TOTAL LIABILITIES
11,346,183
2,759,200
14,105,383
NET ASSETS
Invested in capital assets, net of related debt
20,399,936
11,342,873
31,742,809
Restricted for
Economic development
5,554,293
-
5,554,293
Debt service
369,863
-
369,863
Public safety police expenditures
85,753
-
85,753
Ice arena
8,825
-
8,825
Unrestricted
22,544,601
3,505,651
26,050,252
TOTAL NET ASSETS
$ 48,963,271
$ 14,848,524
$ 63,811,795
The notes to the financial statements are an integral part of this statement.
-33-
CITY OF NEW HOPE, MINNESOTA
STATEMENT OF ACTIVITIES
FOR THE YEAR ENDED DECEMBER 31, 2011
Functions /Programs
Governmental activities
General government
Public safety
Public works
Culture and recreation
Economic development
Interest on long -term debt
Total governmental activities
Business -type activities
Sewer utility
Water utility
Golf course
Ice arena
Storm water
Street lighting
Total business -type activities
Total
Expenses
Program Revenues
Operating Capital
Charges for Grants and Grants and
Services Contributions Contributions
$ 1,841,145
$ 220,629 $
222,928
$ -
6,129,860
877,159
247,537
-
1,795,189
219,353
162,707
1,110,762
1,882,279
637,077
12,204
-
536,433
98,139
138,006
-
248,174
-
-
-
12,433,080
2,052,357
783,382
1,110,762
2,070,951
2,352,635
-
-
3,535,160
3,169,859
21,031
13,454
322,679
278,788
-
-
746,218
752,671
-
-
490,336
947,031
3,000
97,652
113,753
122,742
-
-
7,279,097
7,623,726
24,031
111,106
$ 19,712.177
$ 9,676,083 $
807,413
$ 1,221,868
General revenues
Taxes
Property taxes
Tax increments
Franchise taxes
Grants and contributions not restricted to specific programs
Unrestricted investment earnings
Gain on sale of capital assets
Transfers
Total general revenues and transfers
Change in net assets
Net Assets, January 1
Net Assets, December 31
The notes to the financial statements are an integral part of this statement.
-34-
Net (Expenses) Revenues
and Changes in Net Assets
Governmental Business -type
Activities
Activities
Total
$ (1,397,588)
$ -
$ (1,397,588)
(5,005,164)
-
(5,005,164)
(302,367)
-
(302,367)
(1,232,998)
-
(1,232,998)
(300,288)
-
(300,288)
(248,174)
-
(248,174)
(8,486,579)
-
(8,486,579)
-
281,684
281,684
-
(330,816)
(330,816)
-
(43,891)
(43,891)
-
6,453
6,453
-
557,347
557,347
-
8,989
8,989
-
479,766
479,766
(8,486,579)
479,766
(8,006,813)
8,784,948
-
8,784,948
1,400,163
-
1,400,163
439,795
-
439,795
87,206
-
87,206
745,484
71,089
816,573
13,568
-
13,568
(1,767,108)
1,767,108
-
9,704,056
1,838,197
11,542,253
1,217,477
2,317,963
3,535,440
47,745,794
12,530,561
60,276,355
48,963,271
$ 14,848,524
$ 63,811,795
-35-
THIS PAGE IS LEFT BLANK
INTENTIONALLY
-36-
FUND FINANCIAL STATEMENTS
CITY OF NEW HOPE
NEW HOPE, MINNESOTA
FOR THE YEAR ENDED
DECEMBER 31, 2011
-37-
CITY OF NEW HOPE, NIINNESOTA
BALANCESHEET
GOVERNMENTAL FUNDS
DECEMBER 31, 2011
FUND BALANCES
Nonspendable 14,366 - - -
Restricted - - 5,554,293 -
Committed - 4,479,550 -
Assigned - - - 1,986,543
Unassigned 4,920, 846 - - -
TOTAL FUND BALANCES 4,935,212 4,479,550 5,554,293 1,986,543
TOTAL LIABILITIES AND
FUND BALANCES $ 5,434,149 $ 4,932,275 $ 7,740,196 $ 2,436,141
The notes to the financial statements are an integral part of this statement.
-38-
9001
9015/9501
9213 -9220
9203
Economic
Development
HRA
Street
General
Authority
Construction
Infrastructure
ASSETS
Cash and temporary investments
$ 4,823,007
$ 2,261,409
$ 5,301,264
$ 2,000,484
Cash with fiscal agent
-
-
-
-
Receivables
Unremitted tax collections
11,416
-
5,770
-
Delinquent taxes
174,958
-
-
-
Accrued interest
152,642
-
-
-
Accounts
116,986
3,712
-
-
Loans
-
450,922
-
-
Special assessments
Delinquent
788
-
-
-
Deferred
6,897
38,135
-
114,176
Due from other governments
133,089
-
-
321,481
Prepaid items
14,366
-
-
-
Due from other funds
-
91,913
-
-
Advances to other funds
-
2,086,184
-
-
Land held for resale
-
-
2,433,162
-
TOTAL ASSETS
$ 5,434,149
$ 4,932,275
$ 7,740,196
$ 2,436,141
LIABILITIES AND FUND BALANCES
LIABILITIES
Accrued salaries payable
$ 208,072
$ 4,534
$ -
$ -
Accounts and contracts payable
86,748
11,396
1,390
335,422
Due to other governments
20,045
-
5,916
-
Deposits payable
1,490
793
500
-
Due to other funds
-
-
91,913
-
Advances from other funds
-
-
2,086,184
-
Deferred revenue
182,582
436,002
-
114,176
TOTAL LIABILITIES
498,937
452,725
2,185,903
449,598
FUND BALANCES
Nonspendable 14,366 - - -
Restricted - - 5,554,293 -
Committed - 4,479,550 -
Assigned - - - 1,986,543
Unassigned 4,920, 846 - - -
TOTAL FUND BALANCES 4,935,212 4,479,550 5,554,293 1,986,543
TOTAL LIABILITIES AND
FUND BALANCES $ 5,434,149 $ 4,932,275 $ 7,740,196 $ 2,436,141
The notes to the financial statements are an integral part of this statement.
-38-
9242
9245
Energy
Temporary
Conservation
Financing
Project
$ 2,660,198
$ 699,130
-
2,052,073
Other Total
Governmental Governmental
Funds Funds
$ 2,482,727 $ 20,228,219
- 2,052,073
2,228 19,414
- 174,958
- - 152,642
3,720 25,861 150,279
- - 450,922
10,652 - 1,655 13,095
316,103 - 6,212 481,523
- - - 454,570
- - - 14,366
30,000 - - 121,913
315,000 - - 2,401,184
- - - 2,433,162
$ 3,331,953 $ 2,754,923 $ 2,518,683 $ 29,148,320
$ 212,606
607,023 51,354 1,093,333
- 5,000 30,961
- 2,783
- - 91,913
- 2,086,184
324,536 - - 1,057,296
324,536 607,023 56,354 4,575,076
- - 14,366
1,445,050 559,821 7,559,164
- - 186,897 4,666,447
3,007,417 702,850 1,715,611 7,412,421
- - - 4,920,846
3,007,417 2,147,900 2,462,329 24,573,244
$ 3,331,953 $ 2,754,923 $ 2,518,683 $ 29,148,320
-39-
THIS PAGE IS LEFT BLANK
INTENTIONALLY
-40-
CITY OF NEW HOPE, MINNESOTA
RECONCILIATION OF THE BALANCE SHEET
TO THE STATEMENT OF NET ASSETS
GOVERNMENTAL FUNDS
DECEMBER 31, 2011
Total fund balances - governmental funds
Amounts reported for the governmental activities in the statement of net assets are different because
Capital assets used in governmental activities are not financial resources and therefore are
not reported as assets in governmental funds.
Cost of capital assets
Less: accumulated depreciation
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
Bond principal payable
Less: deferred charges, net of accumulated amortization
Plus: unamortized bond premium
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 assets.
Internal service fund net assets included in governmental activities
Internal balances for internal services used by business -type activities
Some receivables are not available soon enough to pay for the current period's expenditures,
and therefore are deferred in the funds.
Special assessments receivable
Delinquent taxes receivable
Loans receivable
Governmental funds do not report a liability for accrued interest until due and payable.
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 Assets.
Total net assets - governmental activities
The notes to the financial statements are an integral part of this statement.
$ 24,573,244
29,312,020
(8,927,630)
(9,160,000)
169,333
(14,247)
9,788,938
658,851
484,471
174,958
397,867
(95,3 80)
1,600, 846
$ 48,963,271
-41-
CITY OF NEW HOPE, MINNESOTA
STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES
GOVERNMENTAL FUNDS
FOR THE YEAR ENDED DECEMBER 31, 2011
9001 9015/9501 9213 -9220 9203
Economic
Development HRA Street
General Authority Construction Infrastructure
REVENUES
Taxes
Property taxes
Tax increments
Franchise taxes
Licenses and permits
Intergovernmental
Charges for services
Fines and forfeitures
Special assessments
Investment earnings
Miscellaneous
TOTAL REVENUES
EXPENDITURES
Current
General government
Public safety
Public works
Culture and recreation
Economic development
Capital outlay
Public safety
Public works
Culture and recreation
Economic development
Debt service
Principal
Interest
Bond issuance costs
$ 6,960,834
$ 85,000
$ -
$ 1,182,500
-
-
1,106,326
-
439,795
-
-
-
359,530
-
-
-
539,846
123,000
142
897,504
1,204,602
98,139
-
-
241,504
-
-
-
6,705
4,907
-
-
88,821
52,201
143,441
77,667
30,885
15,006
-
55,325
9,872,522
378,253
1,249,909
2,212,996
1,558,853 - - -
5,930,605 - - -
812,036 - - -
1,556,248 - - -
- 289,650 - -
12,392 - - -
- - - 3,845,470
- - 246,081 -
TOTAL EXPENDITURES
EXCESS (DEFICIENCY) OF REVENUES
OVER (UNDER) EXPENDITURES
OTHER FINANCING SOURCES (USES)
Transfers in
Bonds issued
Transfers out
TOTAL OTHER FINANCING SOURCES (USES)
NET CHANGE IN FUND BALANCES
FUND BALANCES, JANUARY 1
FUND BALANCES, DECEMBER 31
9,870,134 289,650 246,081 3,845,470
2,388 88,603 1,003,828 (1,632,474)
341,224 231,919 - -
- (63,319) - -
341,224 168,600 - -
343,612 257,203 1,003,828 (1,632,474)
4,591,600 4,222,347 4,550,465 3,619,017
$ 4,935,212 $ 4,479,550 $ 5,554,293 $ 1,986,543
The notes to the financial statements are an integral part of this statement.
-42-
9242 9245
Energy
Temporary Conservation
Financing Project
Other Total
Governmental Governmental
Funds Funds
$ 539,625
$ 8,767,959
- - 293,837
1,400,163
- - -
439,795
- - -
359,530
- - 38,761
1,599,253
- - 241,628
1,544,369
- - 13,825
255,329
66,587 - 75,636
153,835
62,428 631 123,359
548,548
- - 13,967
115,183
129,015 631 1,340,638
15,183,964
- - 1,658
1,560,511
- - 2,596
5,933,201
- - 267,848
1,079,884
- - 4,238
1,560,486
- - -
289,650
613,144 - - 625,536
- - - 3,845,470
- 1,969,444 499,247 2,468,691
- - - 246,081
- - 1,005,000 1,005,000
- - 247,973 247,973
- 93,820 - 93,820
613,144 2,063,264 2,028,560 18,956,303
(484,129) (2,062,633) (687,922) (3,772,339)
1,228,229
705,533
366,963
2,873,868
-
3,505,000
-
3,505,000
(255,533)
-
(4,250,364)
(4,569,216)
972,696
4,210,533
(3,883,401)
1,809,652
488,567
2,147,900
(4,571,323)
(1,962,687)
2,518,850
-
7,033,652
26,535,931
$ 3,007,417
$ 2,147,900
$ 2,462,329
$ 24,573,244
-43-
THIS PAGE IS LEFT BLANK
INTENTIONALLY
-44-
CITY OF NEW HOPE, MINNESOTA
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, 2011
Total net change in fund balances - governmental funds
Amounts reported for governmental activities in the statement of activities are different because
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 expense.
Capital outlays
Depreciation expense
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 Assets.
Contributions to joint venture
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 assets. Also, governmental funds report
the effect of issuance costs, 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.
Bonds issued
Less: bond issuance costs
Principal repayments
Amortization of deferred charges and bond premium
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.
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.
Special assessments
Property taxes
Loan principal repayments
Internal service funds are used by management to charge the costs for equipment, information system,
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.
Change in net assets of the internal service funds
Plus: the change in internal balances for internal services used by business -type activities
Change in net assets - governmental activities
The notes to the financial statements are an integral part of this statement.
$ (1,962,687)
6,125,080
(907,182)
613,144
(3,505,000)
93,820
1,005,000
(4,798)
4,597
4,098
16,989
(15,006)
(516,648)
266,070
$ 1,217,477
-45-
CITY OF NEW HOPE, MINNESOTA
GENERAL FUND
STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES -
BUDGET AND ACTUAL
FOR THE YEAR ENDED DECEMBER 31, 2011
REVENUES
Taxes
Property taxes
Franchise taxes
Licenses and permits
Intergovernmental
Charges for services
Fines and forfeitures
Special assessments
Investment earnings
Miscellaneous
TOTAL REVENUES
EXPENDITURES
Current
General government
Public safety
Public works
Culture and recreation
Capital outlay
General government
Public safety
Culture and recreation
TOTAL EXPENDITURES
EXCESS (DEFICIENCY) OF REVENUES
OVER (UNDER) EXPENDITURES
OTHER FINANCING SOURCES
Transfers in
NET CHANGE IN FUND BALANCE
FUND BALANCES, JANUARY 1
FUND BALANCES, DECEMBER 31
Budgeted Amounts
Original Final
Variance with
Final Budget
$ 7,077,171
$ 7,077,171
$ 6,960,834
$ (116,337)
458,000
458,000
439,795
(18,205)
365,080
367,660
359,530
(8,130)
762,620
469,210
539,846
70,636
957,605
1,034,905
1,204,602
169,697
276,200
278,950
241,504
(37,446)
-
-
6,705
6,705
48,900
48,900
88,821
39,921
20,500
28,643
30,885
2,242
9,966,076
9,763,439
9,872,522
109,083
1,603,357
1,534,513
1,558,853
(24,340)
6,103,430
6,074,846
5,930,605
144,241
863,740
863,467
812,036
51,431
1,644,077
1,596,294
1,556,248
40,046
34,123
29,123
-
29,123
79,500
7,500
12,392
(4,892)
3,500
3,500
-
3,500
10,331,727
10,109,243
9,870,134
239,109
(365,651)
(345,804)
2,388
348,192
365,651
345,804
341,224
(4,580)
343,612 343,612
4,591,600 4,591,600 4,591,600 -
$ 4,591,600 $ 4,591.600 $ 4,935,212 $ 343,612
The notes to the financial statements are an integral part of this statement.
Actual
Amounts
-46-
CITY OF NEW HOPE, MINNESOTA
ECONOMIC DEVELOPMENT AUTHORITY FUND
STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES -
BUDGET AND ACTUAL
FOR THE YEAR ENDED DECEMBER 31, 2011
REVENUES
Property taxes
Intergovernmental
Charges for services
Special assessments
Investment income
Miscellaneous
TOTAL REVENUES
EXPENDITURES
Economic development
Current
Personnel services
Supplies
Other services and charges
TOTAL EXPENDITURES
EXCESS (DEFICIENCY) OF REVENUES
OVER (UNDER) EXPENDITURES
OTHER FINANCING SOURCES (USES)
Transfers in
Transfers out
TOTAL OTHER FINANCING
SOURCES (USES)
NET CHANGE IN FUND BALANCES
FUND BALANCES, JANUARY 1
FUND BALANCES, DECEMBER 31
Budgeted Amounts
Original Final
Variance with
Final Budget
$ 85,000 $ 85,000 $ 85,000 $ -
- - 123,000 123,000
98,139 98,139
- - 4,907 4,907
43,800 43,800 52,201 8,401
- - 15,006 15,006
128,800 128,800 378,253 249,453
113,865 114,901 106,914 7,987
350 350 6 344
129,278 128,242 182,730 (54,488)
243,493 243,493 289,650 (46,157)
(114,693) (114,693) 88,603 203,296
231,919 231,919
(27,199) (27,199) (63,319) (36,120)
(27,199) (27,199) 168,600 195,799
(141,892) (141,892) 257,203 399,095
4,222,347 4,222,347 4,222,347 -
$ 4,080,455 $ 4,080,455 $ 4,479,550 $ 399,095
The notes to the financial statements are an integral part of this statement.
Actual
Amounts
-47-
CITY OF NEW HOPE, MINNESOTA
STATEMENTS OF NET ASSETS - CONTINUED ON FOLLOWING PAGES
PROPRIETARY FUNDS
DECEMBER 31, 2011 AND 2010
ASSETS
CURRENT ASSETS
Cash and temporary investments
Restricted cash and temporary investments
Receivables
Accounts
Special assessments
Delinquent
Deferred
Due from other funds
Due from other governments
Inventory
TOTAL CURRENT ASSETS
NONCURRENT ASSETS
Unamortized deferred charges
Investment in joint ventures
Capital assets
Land
Buildings and structures
Improvements other than buildings
Vehicles and equipment
Construction in progress
Less: accumulated depreciation
Total capital assets
(net of accumulated depreciation)
TOTAL NONCURRENT ASSETS
TOTAL ASSETS
Business -type Activities - Enterprise Funds
9300
9301
Sewer Utility
Water Utility
2011
2010
2011
2010
$ 413,985 $
199,922
$ 706,617 $
-
254,548
253,438
558,616
600,708
1,149
3,090
1,934
5,043
57,838
60,480
97,213
101,285
-
-
46,844
247,576
-
-
28,309
33,840
727,520
516,930
1,439,533
988,452
5,607
8,276
23,532
28,171
-
-
168,509
168,509
3,134,254
3,076,266
3,789,011
3,389,036
293,139
293,139
1,392,767
1,392,767
132,933
72,309
1,512,548
701,807
(1,908,043)
(1,838,292)
(1,971,745)
(1,851,675)
1,652,283
1,603,422
4,722,581
3,631,935
1,657,890
1,611,698
4,914,622
3,828,615
2,385,410
2,128,628
6,354,155
4,817,067
The notes to the financial statements are an integral part of this statement.
-48-
-49-
Business -type Activities - Enterprise Funds
9302
9303
9304
Golf Course
Ice Arena
Storm Water
2011
2010
2011
2010
2011
2010
$ 11,153 $
50,375
$ 347,901 $
417,649 $
1,668,076 $
977,607
-
-
-
-
-
595,000
-
100
73,979
54,558
94,701
97,232
-
-
-
-
3,563
4,371
-
-
-
-
27,141
29,244
-
-
-
-
-
501,341
-
-
24,921
39,059
52,908
115,256
11,453
10,346
-
-
-
-
22,606
60,821
446,801
511,266
1,846,389
2,320,051
-
-
-
-
27,699
32,092
250,625
250,625
-
-
234,417
234,417
973,145
973,145
5,617,003
5,617,003
-
-
106,694
106,694
-
-
3,612,056
3,249,119
149,758
149,758
196,363
196,363
-
-
-
-
-
-
285,421
219,782
(791,379)
(758,855)
(2,820,422)
(2,718,809)
(472,395)
(407,413)
688,843
721,367
2,992,944
3,094,557
3,659,499
3,295,905
688,843
721,367
2,992,944
3,094,557
3,687,198
3,327,997
711,449
782,188
3,439,745
3,605,823
5,533,587
5,648,048
-49-
CITY OF NEW HOPE, MINNESOTA
STATEMENTS OF NET ASSETS - CONTINUED
PROPRIETARY FUNDS
DECEMBER 31, 2011 AND 2010
ASSETS
CURRENT ASSETS
Cash and temporary investments
Restricted cash and temporary investments
Receivables
Accounts
Special assessments
Delinquent
Deferred
Due from other funds
Due from other governments
Inventory
TOTAL CURRENT ASSETS
NONCURRENT ASSETS
Unamortized deferred charges
Investment in joint ventures
Capital assets
Land
Buildings and structures
Improvements other than buildings
Vehicles and equipment
Construction in progress
Less: accumulated depreciation
Total capital assets
(net of accumulated depreciation)
TOTAL NONCURRENT ASSETS
TOTAL ASSETS
Business -type Activities - Enterprise Funds
9305
Street Lighting Totals
2011 2010 2011 2010
$ 175,212 $
161,105
$ 3,322,944
$ 1,806,658
-
-
-
595,000
9,091
9,908
990,935
1,015,944
588
680
7,234
13,184
2,338
2,209
184,530
193,218
-
-
-
501,341
-
-
124,673
401,891
-
-
39,762
44,186
187,229
173,902
4,670,078
4,571,422
-
-
56,838
68,539
-
-
168,509
168,509
-
-
485,042
485,042
-
-
6,590,148
6,590,148
-
-
10,642,015
9,821,115
-
-
2,032,027
2,032,027
-
-
1,930,902
993,898
-
-
(7,963,984)
(7,575,044)
-
-
13,716,150
12,347,186
-
-
13,941,497
12,584,234
187,229
173,902
18,611,575
17,155,656
The notes to the financial statements are an integral part of this statement.
-50-
Governmental Activities -
Internal Service Funds
2011 2010
$ 7,162,150 $ 7,669,873
28,918 49,894
7,191,068 7,719,767
85,647
85,647
3,032,156
3,032,156
6,836,364
6,557,518
(6,619,424)
(6,310,632)
3,334,743 3,364,689
3,334,743 3,364,689
10,525,811 11,084,456
-51-
CITY OF NEW HOPE, MINNESOTA
STATEMENTS OF NET ASSETS - CONTINUED
PROPRIETARY FUNDS
DECEMBER 31, 2011 AND 2010
Business -type Activities - Enterprise Funds
LIABILITIES
CURRENT LIABILITIES
Accrued salaries payable
Accounts and contracts payable
Due to other governments
Accrued interest payable
Due to other funds
Deposits payable
Compensated absences payable, current portion
Lease payable, current portion
Bonds payable, current portion
TOTAL CURRENT LIABILITIES
9300
9301
Sewer Utility
Water Utility
2011
2010
2011
2010
$ 10,361 $
4,502
$ 10,697 $
9,247
28,325
15,127
54,256
70,177
-
-
110,586
116,757
1,635
3,838
13,161
16,961
-
-
-
501,341
72,872
76,515
161,872
76,515
113,193 99,982 350,572 790,998
NONCURRENT LIABILITIES
Advances from other funds - - - -
Other postemployment benefits payable 3,121 1,577 3,935 2,387
Lease payable - - - -
Bonds payable, net of unamortized discounts 144,851 218,164 1,216,258 993,512
TOTAL NONCURRENT LIABILITIES 147,972 219,741 1,220,193 995,899
TOTAL LIABILITIES 261,165 319,723 1,570,765 1,786,897
NET ASSETS
Invested in capital assets, net of related debt 1,434,560 1,308,743 3,344,451 2,561,908
Unrestricted 689,685 500,162 1,438,939 468,262
TOTAL NET ASSETS $ 2,124,245 $ 1,808,905 $ 4,783,390 $ 3,030,170
The notes to the financial statements are an integral part of this statement.
-52-
-53-
Business -type Activities - Enterprise Funds
9302
9303
9304
Golf Course
Ice Arena
Storm Water
2011
2010
2011
2010
2011
2010
$ 860 $
1,036
$ 11,079 $
9,105 $
803 $
3,995
1,555
1,992
24,101
36,377
87,922
20,327
-
-
1,560
11,573
-
-
-
-
-
-
7,028
19,674
30,000
34,561
-
-
-
-
-
-
-
40,850
-
-
-
-
8,307
7,843
-
-
-
-
-
-
99,256
801,970
32,415
37,589
45,047
105,748
195,009
845,966
315,000
345,000
-
-
-
-
1,419
970
2,868
1,680
1,104
516
-
-
2,931
11,913
-
-
-
-
-
-
666,930
766,349
316,419
345,970
5,799
13,593
668,034
766,865
348,834
383,559
50,846
119,341
863,043
1,612,831
688,843
721,367
2,981,706
3,074,801
2,893,313
2,322,586
(326,228)
(322,738)
407,193
411,681
1,777,231
1,712,631
$ 362,615 $
398,629
$ 3,388,899 $
3,486,482 $
4,670,544 $
4,035,217
-53-
CITY OF NEW HOPE, MINNESOTA
STATEMENTS OF NET ASSETS - CONTINUED
PROPRIETARY FUNDS
DECEMBER 31, 2011 AND 2010
Business -type Activities - Enterprise Funds
LIABILITIES
CURRENT LIABILITIES
Accrued salaries payable
Accounts and contracts payable
Due to other governments
Accrued interest payable
Due to other funds
Deposits payable
Compensated absences payable, current portion
Lease payable, current portion
Bonds payable, current portion
TOTAL CURRENT LIABILITIES
NONCURRENT LIABILITIES
Advances from other funds
Other postemployment benefits payable
Lease payable
Bonds payable, net of unamortized discounts
TOTAL NONCURRENT LIABILITIES
TOTAL LIABILITIES
NET ASSETS
Invested in capital assets, net of related debt
Unrestricted
9305
Street Lighting Totals
2011 2010 2011 2010
$ - $ - $ 33,800 $ 27,885
9,547 9,963 205,706 153,963
- - 112,146 128,330
21,824 40,473
30,000 535,902
- 40,850
8,307 7,843
334,000 955,000
9,547 9,963 745,783
1,890,246
- - 315,000
345,000
- - 12,447
7,130
- - 2,931
11,913
- - 2,028,039
1,978,025
- - 2,358,417
2,342,068
9,547 9,963 3,104,200
4,232,314
- - 11,342,873
9,989,405
177,682 163,939 4,164,502
2,933,937
TOTAL NET ASSETS $ 177,682 $ 163,939 $ 15,507,375 $ 12,923,342
Total net assets - enterprise funds $ 15,507,375 $ 12,923,342
Adjustment to reflect the consolidation of internal service fund
activities related to the enterprise funds (658,851) (392,781)
Net assets - business -type activities
The notes to the financial statements are an integral part of this statement.
$ 14,848,524 $ 12,530,561
-54-
Governmental Activities -
Internal Service Funds
2011 2010
$ 51,532 $ 90,958
125,124 136,897
19,183 48,616
470,152 463,580
665,991 740,051
70,882 38,819
70,882 38,819
736,873 778,870
3,334,743 3,364,689
6,454,195 6,940,897
$ 9,788,938 $ 10,305,586
-55-
CITY OF NEW HOPE, MINNESOTA
STATEMENTS OF REVENUES, EXPENSES AND
CHANGES IN FUND NET ASSETS - CONTINUED ON FOLLOWING PAGES
PROPRIETARY FUNDS
FOR THE YEARS ENDED DECEMBER 31, 2011 AND 2010
OPERATING REVENUES
Charges for services
Billings to departments
Other
TOTAL OPERATING REVENUES
OPERATING EXPENSES
Cost of goods sold
Personnel services
Supplies
Utilities
Other services and charges
Depreciation
TOTAL OPERATING EXPENSES
OPERATING INCOME (LOSS)
NONOPERATING REVENUES (EXPENSES)
Investment earnings
Miscellaneous revenues
Gain on sale of capital assets
Interest expense
TOTAL NONOPERATING
REVENUES (EXPENSES)
INCOME (LOSS) BEFORE TRANSFERS
AND CONTRIBUTIONS
TRANSFERS IN
CAPITAL CONTRIBUTIONS
TRANSFERS OUT
TOTAL TRANSFERS AND CONTRIBUTIONS
CHANGE IN NET ASSETS
NET ASSETS, JANUARY 1
NET ASSETS, DECEMBER 31
Business -type Activities - Enterprise Funds
9300 9301
Sewer Utility Water Utility
2011 2010 2011 2010
$ 2,352,635 $ 2,292,300 $ 3,130,311 $ 3,047,304
2,352,635
2,292,300
3,130,311
3,047,304
1,356,328
1,298,199
2,281,327
1,807,588
245,089
210,476
321,900
326,248
11,813
8,297
181,267
238,150
10,511
7,288
1,136
1,154
303,811
269,952
469,815
317,326
69,751
67,795
120,070
116,731
1,997,303
1,862,007
3,375,515
2,807,197
355,332
430,293
(245,204)
240,107
10,943 - 3,926 (2,023)
- - 60,579 51,971
(6,511) (11,214) (35,087) (32,561)
4,432 (11,214) 29,418 17,387
359,764 419,079 (215,786) 257,494
- 1,427,361 2,000,000 -
- - 13,454 254,937
(44,424) (37,535) (44,448) (1,464,887)
(44,424) 1,389,826 1,969,006 (1,209,950)
315,340 1,808,905 1,753,220 (952,456)
1,808,905 - 3,030,170 3,982,626
$ 2,124,245 $ 1,808,905 $ 4,783,390 $ 3,030,170
The notes to the financial statements are an integral part of this statement.
-56-
-57-
Business -type Activities - Enterprise Funds
9302
9303
9304
Golf Course
Ice Arena
Storm
Water
2011
2010
2011
2010
2011
2010
$ 273,064
$ 305,558
$ 752,671 $
741,266
$ 947,031
$ 943,883
273,064
305,558
752,671
741,266
947,031
943,883
24,948
26,164
-
-
-
-
163,139
163,680
288,663
267,562
53,692
48,706
34,391
33,939
23,410
21,478
11,678
7,222
22,185
18,064
263,310
242,434
623
757
36,077
34,716
56,886
64,234
278,240
228,775
32,524
41,826
101,613
101,613
64,982
61,692
313,264
318,389
733,882
697,321
409,215
347,152
(40,200)
(12,831)
18,789
43,945
537,816
596,731
1,131
387
9,665
4,235
40,670
12,709
5,724
8,383
-
-
3,000
61,691
(2,669)
(24,048)
(1,037) (1,413)
(24,791)
(50,832)
4,186
(15,278)
8,628
2,822
18,879
23,568
(36,014)
(28,109)
27,417
46,767
556,695
620,299
-
-
-
-
97,652
167,790
-
-
(125,000)
-
(19,020)
(16,068)
-
-
(125,000)
-
78,632
151,722
(36,014)
(28,109)
(97,583)
46,767
635,327
772,021
398,629
426,738
3,486,482
3,439,715
4,035,217
3,263,196
$ 362,615
398,629
$ 3,388,899 $
3,486,482
$ 4,670,544
4,035,217
-57-
CITY OF NEW HOPE, MINNESOTA
STATEMENTS OF REVENUES, EXPENSES AND
CHANGES IN FUND NET ASSETS - CONTINUED
PROPRIETARY FUNDS
FOR THE YEARS ENDED DECEMBER 31, 2011 AND 2010
Business -type Activities - Enterprise Funds
9305
Street Lighting Totals
2011 2010 2011 2010
OPERATING REVENUES
Charges for services
Billings to departments
Other
$ 122,742 $ 121,647 $ 7,578,454 $ 7,451,958
TOTAL OPERATING REVENUES
122,742
121,647
7,578,454
7,451,958
OPERATING EXPENSES
Cost of goods sold
-
-
3,662,603
3,131,951
Personnel services
180
-
1,072,663
1,016,672
Supplies
-
-
262,559
309,086
Utilities
112,141
101,490
409,906
371,187
Other services and charges
1,432
2,609
1,146,261
917,612
Depreciation
-
-
388,940
389,657
TOTAL OPERATING EXPENSES
113,753
104,099
6,942,932
6,136,165
OPERATING INCOME (LOSS)
8,989
17,548
635,522
1,315,793
NONOPERATING REVENUES (EXPENSES)
Investment earnings
4,754
2,092
71,089
17,400
Miscellaneous revenues
-
-
69,303
122,045
Gain on sale of capital assets
-
-
-
-
Interest expense
-
-
(70,095)
(120,068)
TOTAL NONOPERATING
REVENUES (EXPENSES)
4,754
2,092
70,297
19,377
INCOME (LOSS) BEFORE TRANSFERS
AND CONTRIBUTIONS
13,743
19,640
705,819
1,335,170
TRANSFERS IN
-
-
2,000,000
1,427,361
CAPITAL CONTRIBUTIONS
-
-
111,106
422,727
TRANSFERS OUT
-
-
(232,892)
(1,518,490)
TOTAL TRANSFERS AND CONTRIBUTIONS
-
-
1,878,214
331,598
CHANGE IN NET ASSETS
13,743
19,640
2,584,033
1,666,768
NET ASSETS, JANUARY 1
163,939
144,299
12,923,342
11,256,574
NET ASSETS, DECEMBER 31
$ 177,682 $
163,939
$ 15,507,375
$ 12,923,342
Change in net assets - enterprise funds
$ 2,584,033
$ 1,666,768
Adjustment to reflect the consolidation of internal service fund activities related to
the enterprise funds.
(266,070)
(181,865)
Change in net assets - business -type activities
$ 2,317,963
$ 1,484,903
The notes to the financial statements are an integral part of this statement.
-58-
Governmental Activities -
Internal Service Funds
2011 2010
2,107,784 1,859,795
17,116 44,513
2,124,900 1,904,308
960,492
978,400
396,513
359,185
84,583
85,697
815,552
443,286
523,152
501,084
2,780,292 2,367,652
(655,392) (463,344)
196,936 48,112
13,568 20,976
210,504 69,088
(444,888) (394,256)
(71,760) (60,600)
(71,760) (60,600)
(516,648) (454,856)
10,305,586 10, 760,442
$ 9,788,938 $ 10,305,586
-59-
CITY OF NEW HOPE, MINNESOTA
STATEMENTS OF CASH FLOWS - CONTINUED ON FOLLOWING PAGES
PROPRIETARY FUNDS
FOR THE YEARS ENDED DECEMBER 31, 2011 AND 2010
CASH FLOWS FROM OPERATING ACTIVITIES
Receipts from customers and users
Receipts from interfund services provided
Other operating receipts
Payments to suppliers
Payments to employees
NET CASH PROVIDED (USED)
BY OPERATING ACTIVITIES
CASH FLOWS FROM NONCAPITAL
FINANCING ACTIVITIES
Transfers in
Transfers out
Borrowing (payments) on interfand balances
Deposits received (returned)
NET CASH PROVIDED (USED) BY
NONCAPITAL FINANCING ACTIVITIES
CASH FLOWS FROM CAPITAL
AND RELATED FINANCING ACTIVITIES
Acquisition of capital assets
Proceeds from sale of assets
Capital contributions
Intergovernmental receipts
Proceeds from bonds issued (net)
Principal paid on long -term debt
Interest paid on long -term debt
NET CASH PROVIDED (USED) BY
CAPITAL AND RELATED
FINANCING ACTIVITIES
CASH FLOWS FROM INVESTING ACTIVITIES
Interest received from investments
NET INCREASE (DECREASE)
IN CASH AND CASH EQUIVALENTS
CASH AND CASH EQUIVALENTS, JANUARY 1
CASH AND CASH EQUIVALENTS, DECEMBER 31
RECONCILIATION TO THE PROPRIETARY FUNDS
STATEMENT OF NET ASSETS
Cash and temporary investments
Restricted cash and temporary investments
TOTAL CASH AND CASH EQUIVALENTS
Business -type Activities - Enterprise Funds
9300 9301
Sewer Utility Water Utility
$ 2,356,108 $ 2,293,584 $ 3,139,154 $ 2,972,449
- - 60,579 51,971
(1,658,452) (1,579,422) (2,909,147) (2,360,691)
(237,686) (205,540) (318,902) (329,612)
459,970 508,622 (28,316) 334,117
- - 2,000,000 55,219
(44,424) (92,754) (44,448) (37,526)
- - (501,341) (384,097)
(44,424) (92,754) 1,454,211 (366,404)
(129,425) (137,896)
(1,251,675)
(648,642)
- -
13,454
13,775
- -
241,162
-
- 289,420
411,738
1,043,645
(76,515) (355,250)
(103,159)
(355,250)
(6,486) (12,220)
(34,724)
(19,218)
(212,426) (215,946) (723,204) 34,310
10,943 - 3,926 (2,023)
214,063 199,922 706,617 -
199,922 - - -
$ 413,985 $ 199,922 $ 706,617 $
413,985 199,922 706,617 -
$ 413,985 $ 199,922 $ 706,617 $
The notes to the financial statements are an integral part of this statement.
-60-
Business -type Activities - Enterprise Funds
9302 9303 9304
Golf Course Ice Arena Storm Water
2011 2010 2011 2010 2011 2010
$ 273,164 $ 305,758 $ 747,388 $ 710,390 $ 952,473 $ 941,647
5,724 8,383 - - 3,000 61,691
(119,145) (110,858) (365,895) (340,329) (272,868) (280,936)
(162,866) (163,526) (285,501) (265,021) (56,296) (44,614)
(3,123) 39,757 95,992 105,040 626,309 677,788
- - (125,000) - (19,020) (16,068)
(34,561) 379,561 - - 501,341 384,097
- - (40,850) 40,850 - -
(34,561) 379,561 (165,850) 40,850 482,321 368,029
(378,654) (216,388)
- - - - 160,000 52,534
- - - - - 810,350
- (400,000) (8,518) (7,405) (801,969) (409,500)
(2,669) (27,129) (1,037) (1,413) (33,208) (50,202)
(2,669) (427,129) (9,555) (8,818) (1,053,831) 186,794
1,131
387
9,665
4,236
40,670
12,709
(39,222)
(7,424)
(69,748)
141,308
95,469
1,245,320
50,375
57,799
417,649
276,341
1,572,607
327,287
$ 11,153 $
50,375
$ 347,901
$ 417,649
$ 1,668,076
$ 1,572,607
11,153
50,375
347,901
417,649
1,668,076
977,607
-
-
-
-
-
595,000
$ 11,153 $
50,375
$ 347,901
$ 417,649
$ 1,668,076
$ 1,572,607
-61-
CITY OF NEW HOPE, MINNESOTA
STATEMENTS OF CASH FLOWS - CONTINUED
PROPRIETARY FUNDS
FOR THE YEARS ENDED DECEMBER 31, 2011 AND 2010
NET CASH PROVIDED (USED)
BY OPERATING ACTIVITIES
CASH FLOWS FROM NONCAPITAL
FINANCING ACTIVITIES
Transfers in
Transfers out
Borrowing (payments) on interfand balances
Deposits received (returned)
NET CASH PROVIDED (USED) BY
NONCAPITAL FINANCING ACTIVITIES
CASH FLOWS FROM CAPITAL
AND RELATED FINANCING ACTIVITIES
Acquisition of capital assets
Proceeds from sale of assets
Capital contributions
Intergovernmental receipts
Proceeds from bonds issued (net)
Principal paid on long -term debt
Interest paid on long -term debt
NET CASH PROVIDED (USED) BY
CAPITAL AND RELATED
FINANCING ACTIVITIES
CASH FLOWS FROM INVESTING ACTIVITIES
Interest received from investments
NET INCREASE (DECREASE)
IN CASH AND CASH EQUIVALENTS
9,353 13,195 1,160,185 1,678,519
- - 2,000,000
Business -type Activities - Enterprise Funds
- - (232,892)
(146,348)
9305
379,561
- - (40,850)
40,850
Street Lighting
Totals
329,282
2011 2010
2011
2010
CASH FLOWS FROM OPERATING ACTIVITIES
Receipts from customers and users
$ 123,522 $ 118,800
$ 7,591,809 $
7,342,628
Receipts from interfund services provided
- -
-
-
Other operating receipts
- -
69,303
122,045
Payments to suppliers
(113,989) (105,605)
(5,439,496)
(4,777,841)
Payments to employees
(180) -
(1,061,431) (1,008,313)
NET CASH PROVIDED (USED)
BY OPERATING ACTIVITIES
CASH FLOWS FROM NONCAPITAL
FINANCING ACTIVITIES
Transfers in
Transfers out
Borrowing (payments) on interfand balances
Deposits received (returned)
NET CASH PROVIDED (USED) BY
NONCAPITAL FINANCING ACTIVITIES
CASH FLOWS FROM CAPITAL
AND RELATED FINANCING ACTIVITIES
Acquisition of capital assets
Proceeds from sale of assets
Capital contributions
Intergovernmental receipts
Proceeds from bonds issued (net)
Principal paid on long -term debt
Interest paid on long -term debt
NET CASH PROVIDED (USED) BY
CAPITAL AND RELATED
FINANCING ACTIVITIES
CASH FLOWS FROM INVESTING ACTIVITIES
Interest received from investments
NET INCREASE (DECREASE)
IN CASH AND CASH EQUIVALENTS
9,353 13,195 1,160,185 1,678,519
- - 2,000,000
55,219
- - (232,892)
(146,348)
- - (34,561)
379,561
- - (40,850)
40,850
- (78,124)
- 1,691,697
329,282
(1,759,754) (1,002,926)
- - 13,454
13,775
- - 401,162
52,534
- - 411,738
2,143,415
- - (990,161)
(1,527,405)
- (78,124)
(110,182)
- - (2,001,685) (430,789)
4,754 2,092 71,089 17,401
CASH AND CASH EQUIVALENTS, JANUARY 1
CASH AND CASH EQUIVALENTS, DECEMBER 31
RECONCILIATION TO THE PROPRIETARY FUNDS
STATEMENT OF NET ASSETS
Cash and temporary investments
Restricted cash and temporary investments
TOTAL CASH AND CASH EQUIVALENTS
14,107 15,287 921,286 1,594,413
161,105 145,818 2,401,658 807,245
$ 175,212 $ 161,105 $ 3,322,944 $ 2,401,658
$ 175,212 $ 161,105 $ 3,322,944 $ 1,806,658
- - - 595,000
$ 175,212 $ 161,105 $ 3,322,944 $ 2,401,658
The notes to the financial statements are an integral part of this statement.
-62-
Governmental Activities
Internal Service Funds
2011 2010
2,124,900 1,957,141
(1,299,150) (965,896)
(961,283) (1,021,077)
(135,533) (29,832)
(71,760) (60,600)
(71,760) (60,600)
(510,934) (828,240)
13,568 20,976
(497,366) (807,264)
196,936 48,113
(507,723) (849,583)
7,669,873 8,519,456
$ 7,162,150 $ 7,669,873
$ 7,162,150 $ 7,669,873
$ 7,162,150 $ 7,669,873
-63-
CITY OF NEW HOPE, MINNESOTA
STATEMENTS OF CASH FLOWS - CONTINUED
PROPRIETARY FUNDS
FOR THE YEARS ENDED DECEMBER 31, 2011 AND 2010
Business -type Activities - Enterprise Funds
RECONCILIATION OF OPERATING INCOME (LOSS)
TO NET CASH PROVIDED (USED)
BY OPERATING ACTIVITIES
Operating income (loss)
Adjustments to reconcile operating income (loss)
to net cash provided (used) by operating activities
Depreciation
Other income related to operations
(Increase) decrease in assets
Receivables
Accounts
Special assessments
Due from other governments
Inventory
Prepaid items
Increase (decrease) in liabilities
Accounts and contracts payable
Accrued salaries payable
Due to other governments
Compensated absences payable
Other postemployment benefits payable
NET CASH PROVIDED (USED)
BY OPERATING ACTIVITIES
SCHEDULE OF NONCASH CAPITAL AND
RELATED FINANCING ACTIVITIES
Amortization of deferred charges and bond bond discount
Amortization of bond premium
Capital assets purchased on account
Transfer of capital assets from other funds
Transfer of capital assets to other funds
Transfer of other assets from other funds
Transfer of other assets to other funds
Transfer of bonds payable from other funds
Transfer of bonds payable to other funds
Transfer of other liabilities from other funds
Transfer of other liabilities to other funds
9300 9301
Sewer Utility Water Utility
2011 2010 2011 2010
$ 355,332 $ 430,293 $ (245,204) $ 240,107
69,751 67,795 120,070 116,731
- - 60,579 51,971
The notes to the financial statements are an integral part of this statement.
-64-
(1,110)
4,559
5,743
(78,056)
4,583
(3,275)
7,181
4,404
-
-
(4,081)
(1,203)
-
-
5,531
11,085
24,011
4,314
25,038
(45,787)
5,859
4,502
1,450
(4,021)
-
-
(6,171)
38,229
1,544
434
1,548
657
$
459,970
$
508,622
$ (28,316)
$
334,117
$
3,343
$
2,452
$
5,312
$
3,699
$
1,115
$
657
$
1,149
$
678
$
$
10,813
$
$
40.959
$
$
1,522,508
$
$
$
$
$
$
1,522,508
$
$
320,346
$
$
$
$
$
$
320.346
$
$
355,250
$
$
$
$
$
$
355,250
$
$
5,024
$
$
The notes to the financial statements are an integral part of this statement.
-64-
-65-
Business -type Activities - Enterprise Funds
9302
9303
9304
Golf Course
Ice Arena
Storm
Water
2011
2010
2011
2010
2011
2010
$
(40,200)
$
(12,831)
$
18,789
$
43,945
$
537,816
$
596,731
32,524
41,826
101,613
101,613
64,982
61,692
5,724
8,383
-
-
3,000
61,691
100
200
(19,421)
(29,922)
2,531
(4,057)
-
-
-
-
2,911
1,821
-
-
14,138
(954)
-
-
(1,107)
1,719
-
-
-
-
-
-
-
75
-
-
(437)
306
(12,276)
(12,088)
17,673
(43,912)
(176)
(57)
1,974
2,105
(3,192)
3,995
-
-
(10,013)
(170)
-
(270)
449
211
1,188
436
588
97
$ (3,123)
$
39,757
$
95,992
$
105,040
$
626,309
$
677,788
$
$
7,471
$
$
$
5,614
$
5,035
$
$
$
$
$
1,385
$
543
$
$
$
$
$
65,623
$
15,701
-65-
CITY OF NEW HOPE, MINNESOTA
STATEMENTS OF CASH FLOWS - CONTINUED
PROPRIETARY FUNDS
FOR THE YEARS ENDED DECEMBER 31, 2011 AND 2010
RECONCILIATION OF OPERATING INCOME (LOSS)
TO NET CASH PROVIDED (USED)
BY OPERATING ACTIVITIES
Operating income (loss)
Adjustments to reconcile operating income (loss)
to net cash provided (used) by operating activities
Depreciation
Other income related to operations
(Increase) decrease in assets
Receivables
Accounts
Special assessments
Due from other governments
Inventory
Prepaid items
Increase (decrease) in liabilities
Accounts and contracts payable
Accrued salaries payable
Due to other governments
Compensated absences payable
Other postemployment benefits payable
NET CASH PROVIDED (USED)
BY OPERATING ACTIVITIES
SCHEDULE OF NONCASH CAPITAL AND
RELATED FINANCING ACTIVITIES
Amortization of deferred charges and bond bond discount
Amortization of bond premium
Capital assets purchased on account
Transfer of capital assets from other funds
Transfer of capital assets to other funds
Transfer of other assets from other funds
Transfer of other assets to other funds
Transfer of bonds payable from other funds
Transfer of bonds payable to other funds
Transfer of other liabilities from other funds
Transfer of other liabilities to other funds
Business -type Activities - Enterprise Funds
9305
Street Lighting Totals
2011 2010 2011 2010
$ 8,989 $ 17,548 $ 635,522 $ 1,315,793
- - 388,940 389,657
- - 69,303 122,045
The notes to the financial statements are an integral part of this statement.
••
817
(2,524)
(11,340)
(109,800)
(37)
(323)
14,638
2,627
-
-
10,057
(2,157)
-
-
4,424
12,804
-
-
-
75
(416)
(1,466)
53,593
(98,633)
-
-
5,915
6,524
-
(40)
(16,184)
37,749
-
-
5,317
1,835
$
9,353
$
13,195
$
1,160,185
$
1,678,519
$
$
$
14,269
$
18,657
$
$
$
3,649
$
1,878
$
$
$
65,623
$
67,473
$
$
$
$
1,522,508
$
$
$
$
1,522,508
$
$
$
$
320,346
$
$
$
$
320,346
$
$
$
$
355,250
$
$
$
$
355,250
$
$
$
$
5,024
$
$
$
$
5,024
The notes to the financial statements are an integral part of this statement.
••
Governmental Activities -
Internal Service Funds
2011 2010
$ (655,392) $ (463,344)
523,152 501,084
- 50,161
- 2,672
20,976 811
5,955
(154,234)
(39,426)
8,954
(29,433)
48,616
6,572
(36,292)
32,063
11,740
$ (135,533) $ (29,832)
-67-
86,908
-67-
CITY OF NEW HOPE, MINNESOTA
STATEMENT OF FIDUCIARY NET ASSETS
AGENCY FUND
DECEMBER 31, 2011
ASSETS
Cash and temporary investments
LIABILITIES
Deposits payable
The notes to the financial statements are an integral part of this statement.
9503
Pass - Through
Grant Fund
$ 45,694
$ 45,694
-68-
CITY OF NEW HOPE, MINNESOTA
NOTES TO THE FINANCIAL STATEMENTS
DECEMBER 31, 2011
Note 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
A. Financial reporting entity
The City of New Hope (the City) operates under "Optional Plan B" 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 proper administration of
all affairs relating to the City." The City Council is composed of five members including the mayor. The City Council
appoints the City manager. The City has considered all potential units for which it is financially accountable, and other
organizations for which the nature and significance of their relationship with the City are such that exclusion would
cause the City's financial statements to be misleading or incomplete. The Governmental Accounting Standards Board
(GASB) has set forth criteria to be considered in determining financial accountability. These criteria include appointing a
voting majority of an organization's governing body, and (1) the ability of the primary government to impose its will on
that organization or (2) the potential for the organization to provide specific benefits to, or impose specific financial
burdens on the primary government. Blended component units are, in substance, part of the government's operations and
so are reported as if they were part of the primary government. The City has identified the following component units
using the above criteria:
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 New Hope EDA and HRA boards, and funding for New
Hope EDA and HRA activities are provided by the City, both entities are considered to be blended component units of
the City, and are reported as special revenue funds.
The City participates in various joint ventures and jointly controlled organizations which are described later in these
notes.
B. Government -wide and fund financial statements
The government -wide financial statements (i.e., the statement of net assets and the statement of activities) report
information on all of the non - fiduciary activities of the primary government and its component units. Governmental
activities, which normally are supported by taxes and intergovernmental revenues, are reported separately from business
type activities, which rely to a significant extent on fees and charges for support.
The statement of activities demonstrates the degree to which the direct expenses of 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, service, or
privileges provided by a given function or segment and 2) grants and contributions that are restricted to meeting the
operational or capital requirements of a particular function or segment. Taxes and other items not properly included
among programs revenue are reported instead as general revenues.
Separate fund financial statements are provided for governmental, proprietary, and fiduciary funds, even though the latter
are excluded from the government -wide financial statements. Major individual governmental and enterprise funds are
reported as separate columns in the fund financial statements. Aggregated information for the remaining nonmajor funds
are reported in single columns in the respective fund financial statements.
Aggregated information for the internal service funds is presented in a single column in the proprietary fund financial
statements. Because the principal users of the internal services are the City's governmental activities, the financial
statements of the internal service funds are consolidated into the governmental activities column when presented in the
government -wide financial statements. The cost of these services is reported in the appropriate functional activity.
-69-
CITY OF NEW HOPE, MINNESOTA
NOTES TO THE FINANCIAL STATEMENTS
DECEMBER 31, 2011
Note 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - CONTINUED
C. Measurement focus, basis of accounting, and financial statement presentation
The government -wide financial statements are reported using the economic resources measurement focus and the
accrual basis of accounting, as are the proprietary fund and fiduciary fund financial statements. Revenues are recorded
when earned and expenses are recorded when a liability is incurred, regardless of the timing of related cash flows.
Property taxes are recognized as revenues in the year for which they are levied. Grants and similar items are recognized
as revenue as soon as all eligibility requirements imposed by the provider have been met.
Governmental fund financial statements are reported using the current financial resources measurement focus and the
modified accrual basis of accounting. Revenues are recognized as soon as they are both measurable and available.
Revenues are considered to be available when they are collectible within the current period or soon enough thereafter to
pay liabilities of the current period. For this purpose, the City considers revenues to be available if they are collected
within 60 days of the end of the current fiscal period. Expenditures generally are recorded when a liability is incurred, as
under accrual accounting. However, debt service expenditures, as well as expenditures related to compensated absences,
other postemployment benefits, and claims and judgments, are recorded only when payment is due.
Property taxes, tax increments, franchise taxes, licenses, and interest associated with the current fiscal period are all
considered to be susceptible to accrual and so have been recognized as revenues of the current fiscal period. Only the
portion of special assessments receivable due within the current fiscal period is considered to be susceptible to accrual as
revenue of the current period. All other revenue items are considered to be measurable and available only when cash is
received by the government.
Revenue resulting from exchange transactions, in which each party gives and receives essentially equal value, is
recorded on the accrual basis when the exchange takes place. On a modified accrual basis, revenue is recorded in the
year in which the resources are measurable and become available.
Non - exchange transactions, in which the City receives value without directly giving equal value in return, include
property taxes, grants, entitlement and donations. On an accrual basis, revenue from property taxes is recognized in the
year for which the tax is levied. Revenue from grants, entitlements and donations is recognized in the year in which all
eligibility requirements have been satisfied. Eligibility requirements include timing requirements, which specify the year
when the resources are required to be used or the year when use is first permitted, matching requirements, in which the
City must provide local resources to be used for a specified purpose, and expenditure requirements, in which the
resources are provided to the City on a reimbursement basis. On a modified accrual basis, revenue from non - exchange
transactions must also be available before it can be recognized.
Deferred revenue arises when assets are recognized before revenue recognition criteria have been satisfied. Grants and
entitlements received before eligibility requirements are met are also recorded as deferred revenue. On the modified
accrual basis, receivables that will not be collected within the available period have also been reported as deferred
revenue in the fund financial statements.
The preparation of financial statements in conformity with accounting principles generally accepted in the United States
of America requires management to make estimates and assumptions that affect certain reported amounts and
disclosures. Accordingly, actual results could differ from those estimates.
-70-
CITY OF NEW HOPE, MINNESOTA
NOTES TO THE FINANCIAL STATEMENTS
DECEMBER 31, 2011
Note 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - CONTINUED
The City reports the following major governmental funds:
The General fund is the City's primary operating fund. It accounts for all financial resources of the general
government, except those required to be accounted for in another fund.
The Economic Development Authority Special Revenue fund accounts for the activities of the authority which
controls and operates the housing and redevelopment projects and tax increment districts in the City.
The HRA Construction Capital Projects fund is used to account for redevelopment costs for tax increment districts,
which are primarily funded by tax increment bonds and tax increment revenues.
The Street Infrastructure Capital Projects fund is used to account for street improvements throughout the City.
The Temporary Financing Capital Projects fund is used to account for various capital projects and capital outlay
purchases until permanent fmancing is acquired.
The Energy Conservation Project Capital Projects fund accounts for the accumulation of resources for major
construction of the energy conservation project.
The City reports the following major enterprise funds:
The Sewer Utility 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, billing
and collection.
The Water Utility 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,
billing and collection.
The Golf Course fund is used to account for the operations of the City's public golf course.
The Ice Arena fund is used to account for the operation of the City's indoor ice arena.
The Storm Water fund accounts for the general operation and maintenance of the City's storm water system.
The Street Lighting fund is used to account for the operation of the City's streetlight system.
Additionally, the City reports the following fund types:
Internal service funds are used to account for the City's vehicle and equipment rental operation, 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.
Fiduciary funds account for assets held by the City in a trustee capacity or as an agent on behalf of others.
The Agency fund is custodial in nature and does not present results of operations or have a measurement focus. This
fund was established to account for pass - through grant funds held by the City as the agent for others.
-71-
CITY OF NEW HOPE, MINNESOTA
NOTES TO THE FINANCIAL STATEMENTS
DECEMBER 31, 2011
Note 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - CONTINUED
Private - sector standards of accounting and financial reporting issued prior to December 1, 1989, generally are followed
in both the government -wide and proprietary fund financial statements to the extent that those standards do not conflict
with or contradict guidance of GASB. Governments also have the option of following subsequent private - sector
guidance for their business -type activities and enterprise funds, subject to this same limitation. The City has elected not
to follow subsequent private - sector guidance.
As a general rule the effect of interfund activity has been eliminated from government -wide financial statements.
Exceptions to this general rule are charges between the government's enterprise fund functions and various other
functions of the government. Elimination of these charges would distort the direct costs and program revenues reported
for the various functions concerned.
Amounts reported as program revenues include 1) charges to customers or applicants for goods, services, or privileges
provided, 2) operating grants and contribution, and 3) capital grants and contributions, including special assessments.
Internally dedicated resources are reported as general revenues rather than as program revenues. Likewise, general
revenues include all taxes.
Proprietary funds distinguish operating revenues and expenses from non - operating 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 enterprise funds and of the government's
internal service funds are charges to customers for sales and services. Operating expenses for enterprise funds and
internal service funds include the cost of sales and services, administrative expenses, and depreciation on capital assets.
All revenues and expenses not meeting this definition are reported as non - operating revenues and expenses.
-72-
CITY OF NEW HOPE, MINNESOTA
NOTES TO THE FINANCIAL STATEMENTS
DECEMBER 31, 2011
Note 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - CONTINUED
D. Assets, liabilities, and net assets or equity
Deposits and investments
The City's cash and cash equivalents are considered to be cash on hand, demand deposits, and short-term investments
with original maturities of three months or less from date of acquisition.
Cash balances from all funds are pooled and invested, to the extent available, in certificates of deposit, U.S. government
obligations, and other authorized investments. Earnings from such investments are allocated on the basis of applicable
participation by each of the funds.
The City may also invest idle funds as authorized by Minnesota statutes, as follows:
1. Direct obligations or obligations guaranteed by the United States or its agencies.
2. Shares of investment companies registered under the Federal Investment Company Act of 1940 and received
the highest credit rating, rated in one of the two highest rating categories by a statistical rating agency, and have
a final maturity of thirteen months or less.
3. General obligations of a state or local government with taxing powers rated "A" or better, revenue obligations
rated "AA" or better.
4. General obligations of the Minnesota Housing Finance Agency rated "A" or better.
5. Bankers' acceptances of United States banks eligible for purchase by the Federal Reserve System.
6. Commercial paper issued by United States banks corporations or their Canadian subsidiaries, of highest quality
category by at least two nationally recognized rating agencies, and maturing in 270 days or less.
7. Repurchase or reverse repurchase 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, a primary reporting dealer in U.S. government securities to
the Federal Reserve Bank of New York, or certain Minnesota securities broker - dealers.
8. Guaranteed investment contracts (GIC's) issued or guaranteed by a United States commercial bank, a domestic
branch of a foreign bank, a United States insurance company, or its Canadian subsidiary, whose similar debt
obligations were rated in one of the top two rating categories by a nationally recognized rating agency.
Investments are stated at their estimated fair value at the end of the year.
-73-
CITY OF NEW HOPE, MINNESOTA
NOTES TO THE FINANCIAL STATEMENTS
DECEMBER 31, 2011
Note 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - CONTINUED
Property taxes
The Council annually adopts a tax levy in December and certifies it to the County for collection in the following year.
The County is responsible for collecting all property taxes for the City. These taxes attach an enforceable lien on taxable
property within the City on January 1 and are payable by the property owners in two installments. The taxes are collected
by the County Treasurer and tax settlements are made to the City during January, July, and December each year.
Taxes payable on homestead property, as defined by Minnesota statutes, were reduced by a market value credit aid. The
credit is paid to the City by the State of Minnesota (the State) in lieu of taxes levied against the homestead property. The
State remits this credit in two equal installments in October and December each year.
Delinquent taxes receivable included the past six years' uncollected taxes. Delinquent taxes have been offset by a
deferred revenue liability for taxes not received within 60 days after year end in the fund financial statements.
Accounts receivable
Accounts receivable include amounts billed for services provided before year end. Unbilled utility enterprise fund
receivables are also included for services provided in 2011. The City annually certifies delinquent water, sewer, storm
water, and street lighting accounts to the County for collection in the following year. Therefore, there has been no
allowance for doubtful accounts established for the delinquent water and sewer accounts.
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 remaining delinquent, deferred and special deferred assessments receivable in governmental funds
are completely offset by deferred revenues. In government -wide financial statements, special assessments are recognized
as revenues in the year for which they are levied.
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.
-74-
CITY OF NEW HOPE, MINNESOTA
NOTES TO THE FINANCIAL STATEMENTS
DECEMBER 31, 2011
Note 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - CONTINUED
Interfund receivables and payables
Activity between funds that are representative of lending/borrowing arrangements outstanding at the end of the fiscal
year are referred to as either "due to /from other funds (i.e., the current portion of interfund loans) or "advances to /from
other funds" (i.e., the non - current portion of interfund loans). All other outstanding balances between funds are reported
as "due to /from other funds." Any residual balances outstanding between the governmental activities and business -type
activities are reported in the government -wide financial statements as "internal balances."
Inventory and prepaid items
Inventory is valued at cost using the first - in/first -out (FIFO) method. Inventory consists mainly of expendable supplies
held for consumption. Inventories of the governmental funds are recorded as expenditures when consumed rather than
when purchased.
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.
Investment in joint ventures
Included in the assets of the government -wide statements and proprietary funds are amounts representing the City's
investment in two joint ventures described later in these notes.
Capital assets
Capital assets, which include property, plant, equipment, and infrastructure assets (e.g., roads, bridges, sidewalks, an
similar items), are reported in the applicable governmental or business -type activities columns in the government -wide
financial statements. Capital assets are defined by the City as assets with an initial, individual cost of more than $5,000
(amount not rounded) and an estimated useful life of two years or more. Such assets are recorded at historical cost or
estimated historical cost if purchased or constructed. Donated capital assets would be recorded at estimated fair market
value at the date of donation. The costs of normal maintenance and repairs that do not add to the value of the asset or
materially extend assets lives are not capitalized.
Major outlays for capital assets and improvements are capitalized as projects are constructed. Interest incurred during the
construction phase of capital assets of business -type activities is included as part of the capitalized value of the assets
constructed.
Property, plant, and equipment of the City are depreciated using the straight line method over the following estimated
useful lives:
Assets
Land improvements
Buildings and structures
Improvements other than buildings
Vehicles and equipment
Years
15 -50
15 -50
15 -50
3 -20
-75-
CITY OF NEW HOPE, MINNESOTA
NOTES TO THE FINANCIAL STATEMENTS
DECEMBER 31, 2011
Note 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - CONTINUED
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.
Other Postemployment Benefits (OPEB)
Under Minnesota statute 471.6 1, subdivision 2b, public employers must allow retirees and their dependents to continue
coverage indefinitely in an employer- sponsored health care 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 GASB Statement No. 45, at January 1, 2011. The
Insurance Reserve Internal service fund is typically used to liquidate governmental other postemployment benefits
payable.
Long -term obligations
In the government -wide financial statements, and proprietary fund types in the fund financial statements, long -term debt
and other long -term obligations are reported as liabilities in the applicable governmental activities, business -type
activities, or proprietary fund type statement of net assets. Bond premiums and discounts, as well as issuance costs, are
deferred and amortized over the life of the bonds using the straight line method. Bond issuance costs are reported as
deferred charges and amortized over the term of the related debt using the straight line method.
In the fund financial statements, governmental fund types recognized 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.
Net assets
Net assets represent the difference between assets and liabilities. Net assets are displayed in three components:
a. Invested in capital assets, net of related debt - Consists of capital assets, net of accumulated depreciation
reduced by any outstanding debt attributable to acquire capital assets.
b. Restricted net assets - Consist of net assets restricted when there are limitations imposed on their use through
external restrictions imposed by creditors, grantors, laws or regulations of other governments.
Unrestricted net assets - All other net assets that do not meet the definition of "restricted" or "invested in
capital assets, net of related debt".
-76-
CITY OF NEW HOPE, MINNESOTA
NOTES TO THE FINANCIAL STATEMENTS
DECEMBER 31, 2011
Note 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - CONTINUED
Fund balance
In the fund financial statements, fund balance is divided into five classifications based primarily on the extent to which
the City is bound to observe constraints imposed upon the use of resources reported in the governmental funds. These
classifications are defined as follows:
Nonspendable - Amounts that cannot be spent because they are not in spendable form, such as prepaid items.
Restricted - Amounts related to externally imposed constraints established by creditors, grantors or contributors; or
constraints imposed by state statutory provisions.
Committed - Amounts constrained for specific purposes that are internally imposed by formal action (resolution) of
the City Council (the Council), which is the City's highest level of decision - making authority. Committed amounts
cannot be used for any other purpose unless the Council modifies or rescinds the commitment by resolution.
Assigned - Amounts constrained for specific purposes that are internally imposed. In governmental funds other than
the General fund, assigned fund balance represents all remaining amounts that are not classified as nonspendable and
are neither restricted nor committed. In the General fund, assigned amounts represent intended uses established by
the Council itself or by an official to which the governing body delegates the authority. The 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 and also negative residual amounts in other funds.
The City considers restricted amounts to be spent first when both restricted and unrestricted fund balance is available.
Additionally, the City would first use committed, then assigned, and lastly unassigned amounts of unrestricted fund
balance when expenditures are made.
The City has formally adopted a fund balance policy for the General fund. The City's policy is to maintain a minimum
unassigned fund balance of 40 - 50 percent of the next year's budgeted expenditures.
Comparative data/reclassifications
Comparative total data for the prior year have been presented only for individual enterprise funds in the fund financial
statements in order to provide an understanding of the changes in the financial position and operations of these funds.
Also, certain amounts presented in the prior year data have been reclassified in order to be consistent with the current
year's presentation.
Change in accountingprincipal
GASB Statement 54 "Fund Balance Reporting and Governmental Fund Type Definitions" enhances the usefulness of
fund balance information by providing clearer fund balance classifications that can be more consistently applied and by
clarifying the existing governmental fund type definitions. The City implemented this standard for fiscal year end
December 31, 2011. Changes to governmental fund type fund balance reporting is reflected in the financial statements
and schedules and related disclosures are included in Note 1 and Note 3.
-77-
CITY OF NEW HOPE, MINNESOTA
NOTES TO THE FINANCIAL STATEMENTS
DECEMBER 31, 2011
Note 2: STEWARDSHIP, COMPLIANCE AND ACCOUNTABILITY
A. Budgetary information
Budgets are legally adopted on a basis consistent with accounting principles generally accepted in the United States of
America. Annual appropriated budgets are legally adopted for the General and certain special revenue funds.
Budgeted amounts are reported as originally adopted, or as amended by the City Council. Individual amendments were
not material in relation to the original appropriations that were adjusted. Budgeted expenditure appropriations lapse the
year end.
The City follows these procedures in establishing the budgetary data reflected in the financial statements:
1. The City Manager submits to the City Council a proposed operating budget for the fiscal year commencing the
following January 1. The operating budget includes proposed expenditures and the means of financing them.
2. Public hearings are conducted to obtain taxpayer comments.
3. When adopted through passage of a resolution, the budget becomes the formal appropriation budget.
4. The legal level of budget control is at the fund level. Total fund expenditures may not legally exceed budgeted
fund appropriations. Budget appropriations lapse at year -end.
5. The City Manager may make transfers of appropriations within funds, or departments within funds, but cannot
adjust the total budget of a fund.
6. Adjustments to budgets at the fund level must be authorized by the City Council.
7. Monitoring of budgets is maintained at the expenditure category level (personnel services, supplies, other
services and charges, or capital outlay) within each activity and fund.
8. Legally adopted budgets are adopted for the following funds:
a. General fund
b. Special revenue funds
i. Community Development
ii. Safety Camp
iii. Storm Sewer
iv. Solid Waste Management
V. Economic Development Authority
9. Formal budgetary integration is employed as a management control device during the year for the General fund
and special revenue funds. Budgets are not prepared for the Firemen's Relief, Lions Club, Liquor Reserve, and
Ice Arena Endowment Special revenue funds.
B. Excess of expenditures over appropriations
For the year ended December 31, 2011, expenditures exceeded appropriations in the Economic Development Authority
fund by $46,157. This excess was funded by revenues received more than anticipated.
C. Deficit fund equity
As of December 31, 2011, the Employee Leave internal service fund had a net liability of $13,359. The City can
eliminate this deficit by increasing billings to other departments for employee leave charges.
-78-
CITY OF NEW HOPE, MINNESOTA
NOTES TO THE FINANCIAL STATEMENTS
DECEMBER 31, 2011
Note 3: DETAILED NOTES ON ALL FUNDS
A. Deposits and investments
Deposits
Custodial credit risk for deposits and investments is the risk that in the event of a bank failure, the City's deposits and
investments may not be returned or the City will not be able to recover collateral securities in the possession of an
outside party. In accordance with Minnesota statutes and as authorized by the Council, the City maintains deposits at
those depository banks, all of which are members of the Federal Reserve System.
Minnesota statutes require that all City deposits be protected by insurance, surety bond or collateral. The market value of
collateral pledged must equal 110 percent of the deposits not covered by insurance or bonds.
Authorized collateral in lieu of a corporate surety bond includes:
• United States government Treasury bills, Treasury notes, Treasury bonds;
• Issues of United States government agencies and instrumentalities as quoted by a recognized industry quotation
service available to the government entity;
• General obligation securities of any state or local government with taxing powers which is rated "A or better
by a national bond rating service, or revenue obligation securities of any state or local government with taxing
powers which is rated "AA or better by a national bond rating service;
• General obligation securities of a local government with taxing powers may be pledged as collateral against
funds deposited by that same local government entity;
• Irrevocable standby letters of credit issued by Federal Home Loan Banks to a municipality accompanied by
written evidence that the bank's public debt is rated "AA" or better by Moody's Investors Service, Inc., or
Standard & Poor's Corporation; and
• Time deposits that are fully insured by any federal agency.
Minnesota statutes require that all collateral shall be placed in safekeeping in a restricted account at a 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 selection should be approved by the City.
At year -end, the carrying amount of the City's deposits was $3,815,691 and the bank balance was $4,092,744. At
December 31, 2011, all deposits were fully covered by federal depository insurance, surety bonds, or by collateral held
by the City's agent in the City's name.
-79-
CITY OF NEW HOPE, MINNESOTA
NOTES TO THE FINANCIAL STATEMENTS
DECEMBER 31, 2011
Note 3: DETAILED NOTES ON ALL FUNDS - CONTINUED
Investments
As of December 31, 2011, the City had the following investments that are insured or registered, or securities held by the
City or its agent in the City's name:
1. Ratings are provided by various credit rating agencies where applicable to indicate associated credit risk.
2. Interest rate risk is disclosed using the segmented time distribution method.
N/A Indicated not applicable or available.
-80-
Fair Value
Credit
Segmented
and
Quality/
Time
Carrying
Types of Investments
Ratings (1)
Distribution (2)
Amount
Pooled investments
Broker Money Market Funds
AAA-
Less than 6 months
$ 3,995,954
Non - pooled investments
Negotiable Certificates of Deposit
N/A
Less than 6 months
242,590
Negotiable Certificates of Deposit
N/A
6 months to 1 year
301,021
Negotiable Certificates of Deposit
N/A
1 to 3 years
699,516
Negotiable Certificates of Deposit
N/A
More than 3 years
860,592
U.S. Government Agency Securities
AAA
1 to 3 years
26,131
U.S. Government Agency Securities
AAA
More than 3 years
7,520,643
Municipal Bonds
AA+
1 to 3 years
1,037,040
Municipal Bonds
AA
1 to 3 years
1,348,925
State and Local Government Securities
A+
6 months to 1 year
1,247,316
State and Local Government Securities
A+
1 to 3 years
797,464
State and Local Government Securities
A+
More than 3 years
1,029,270
State and Local Government Securities
AA-
1 to 3 years
2,731,779
State and Local Government Securities
AA-
More than 3 years
514,135
State and Local Government Securities
AA+
1 to 3 years
200,024
State and Local Government Securities
AA+
More than 3 years
476,591
State and Local Government Securities
A-
1 to 3 years
2,094,940
State and Local Government Securities
AAA
More than 3 years
3,868,508
Total investments
$ 28.992.439
1. Ratings are provided by various credit rating agencies where applicable to indicate associated credit risk.
2. Interest rate risk is disclosed using the segmented time distribution method.
N/A Indicated not applicable or available.
-80-
CITY OF NEW HOPE, MINNESOTA
NOTES TO THE FINANCIAL STATEMENTS
DECEMBER 31, 2011
Note 3: DETAILED NOTES ON ALL FUNDS - CONTINUED
The investments of the City are subject to the following risks:
• Credit Risk. Credit risk is the risk that an issuer or other counterparty to an investment will not fulfill its
obligations. Ratings are provided by various credit rating agencies and where applicable, indicate associated
credit risk. Minnesota statutes limit the City's investments to the list on page 73 of the notes. The City's
investment policy does not address this risk any further.
• Custodial Credit Risk. The custodial credit risk for investments is the risk that, in the event of the failure of the
counterparty to a transaction, a government will not be able to recover the value of investment or collateral
securities that are in the possession of an outside party. The City's investment policy does not address custodial
credit risk but the City typically limits its exposure by purchasing insured or registered investments.
Concentration of Credit Risk. Concentration of credit risk is the risk of loss attributed to the magnitude of a
government's investment in a single issuer. The City's investment policy does not limit the concentration of
investments. As of December 31, 2011, the City had invested 5 percent or more of its total investment portfolio
in the following issuers: Federal Home Loan Mortgage Corporation - 7.1 percent, Federal National Mortgage
Association - 19.0 percent, the State of Illinois - 10.6 percent, the State of California - 7.2 percent, the State of
Michigan - 5.3 percent, and New York City Transitional Finance Authority - 9.8 percent.
• 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 period for which an interest rate is fixed, the greater the risk). The
City's investment policy does not limit the duration of investments.
A reconciliation of cash and temporary investments as reported on the statement of net assets follows:
Carrying amount of deposits $ 3,815,691
Investments 28,992,439
Petty cash 2,950
Total $ 32,811,080
Statement of Net Assets
Cash and temporary investments $ 30,713,313
Cash with fiscal agent 2,052,073
Statement of Fiduciary Net Assets
Cash and temporary investments 45,694
Total $ 32,811,080
-81-
CITY OF NEW HOPE, MINNESOTA
NOTES TO THE FINANCIAL STATEMENTS
DECEMBER 31, 2011
Note 3: DETAILED NOTES ON ALL FUNDS - CONTINUED
B. Receivables /deferred revenue
Loans receivable
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 fund at December 31, 2011 totaled $450,922.
Deferred revenue
Governmental funds report deferred revenue in connection with receivables for revenues that are not considered to be
available to liquidate liabilities of the current period. Governmental funds also defer revenue recognition in connection
with resources that have been received, but not yet earned. At the end of the current fiscal year, the various components
of deferred revenue reported in the governmental funds were as follows:
Unavailable
Delinquent property taxes receivable
General $ 174,958
Special assessments receivable
General 7,624
Economic development authority 38,135
Street infrastructure 114,176
Temporary financing 324,536
Loans receivable
Economic development authority 397,867
Total governmental funds $ 1,057,296
-82-
CITY OF NEW HOPE, MINNESOTA
NOTES TO THE FINANCIAL STATEMENTS
DECEMBER 31, 2011
Note 3: DETAILED NOTES ON ALL FUNDS - CONTINUED
C. Capital assets
Capital asset activity for the year ended December 31, 2011 was as follows:
Beginning
Balance Increases
Governmental activities
Capital assets not being depreciated
Land
Construction in progress
Total capital assets not
being depreciated
Capital assets, being depreciated
Buildings and structures
Vehicles and equipment
Improvements other than
buildings
Total capital assets
being depreciated
Less accumulated depreciation for
Buildings and structures
Vehicles and equipment
Improvements other than
buildings
Total accumulated depreciation
Total capital assets
being depreciated, net
Governmental activities
capital assets, net
Ending
Decreases Balance
$ 994,268
$ -
$ -
$ 994,268
1,614,728
5,503,790
(863,322)
6,255,196
2,608,996
5,503,790
(863,322)
7,249,464
9,241,715
-
-
9,241,715
7,588,917
585,310
(214,360)
7,959,867
13,422,633
1,392,508
-
14,815,141
30,253,265
1,977,818
(214,360)
32,016,723
(4,626,741)
(250,777)
-
(4,877,518)
(5,487,835)
(513,470)
214,360
(5,786,945)
(4,216,504)
(666,087)
-
(4,882,591)
(14,331,080)
(1,430,334)
214,360
(15,547,054)
15,922,185
547,484
-
16,469,669
$ 18,531,181 $ 6,051,274 $ (863,322) $ 23,719,133
-83-
CITY OF NEW HOPE, MINNESOTA
NOTES TO THE FINANCIAL STATEMENTS
DECEMBER 31, 2011
Note 3: DETAILED NOTES ON ALL FUNDS - CONTINUED
capital assets, net $ 12,347,186 $ 1,981,848 $ (612,884) $ 13,716,150
Depreciation expense was charged to functions /programs of the City as follows:
Governmental activities
General government $ 109,739
Public safety 73,987
Public works 462,378
Culture and recreation 261,078
Internal service 523,152
Total depreciation expense - governmental activities $ 1,430,334
Business -type activities
Sewer utility $ 69,751
Water utility 120,070
Golf course 32,524
Ice arena 101,613
Storm water 64,982
Total depreciation expense - business -type activities $ 388,940
-84-
Beginning
Ending
Balance
Increases
Decreases Balance
Business -type Activities
Capital assets not being depreciated
Land
$ 485,042
$ -
$ - $ 485,042
Construction in progress
993,898
1,549,888
(612,884) 1,930,902
Total capital assets
not being depreciated
1,478,940
1,549,888
(612,884) 2,415,944
Capital assets being depreciated
Buildings and structures
6,590,148
-
- 6,590,148
Vehicles and equipment
2,032,027
-
- 2,032,027
Improvements other than
buildings
9,821,115
820,900
- 10,642,015
Total capital assets
being depreciated
18,443,290
820,900
- 19,264,190
Less accumulated depreciation for
Buildings and structures
(3,057,716)
(122,823)
- (3,180,539)
Vehicles and equipment
(1,142,902)
(104,433)
- (1,247,335)
Improvements other than
buildings
(3,374,426)
(161,684)
- (3,536,110)
Total accumulated
depreciation
(7,575,044)
(388,940)
- (7,963,984)
Total capital assets
being depreciated, net
10,868,246
431,960
- 11,300,206
Business -type activities
capital assets, net $ 12,347,186 $ 1,981,848 $ (612,884) $ 13,716,150
Depreciation expense was charged to functions /programs of the City as follows:
Governmental activities
General government $ 109,739
Public safety 73,987
Public works 462,378
Culture and recreation 261,078
Internal service 523,152
Total depreciation expense - governmental activities $ 1,430,334
Business -type activities
Sewer utility $ 69,751
Water utility 120,070
Golf course 32,524
Ice arena 101,613
Storm water 64,982
Total depreciation expense - business -type activities $ 388,940
-84-
CITY OF NEW HOPE, MINNESOTA
NOTES TO THE FINANCIAL STATEMENTS
DECEMBER 31, 2011
Note 3: DETAILED NOTES ON ALL FUNDS - CONTINUED
Construction commitments
The City has active construction projects as of December 31, 2011. At year -end, the City's commitments with the
contractors are as follows:
Project
2011 Infrastructure Improvements
Boone Avenue Improvements
Winnetka Avenue Infrastructure
Lions Park Improvements
Bass Lake Road Water Main Improvements
2009 Retaining Wall
Total
D. Interfund receivables, payables, and transfers
The composition of internal balances as of December 31, 2011 is as follows:
Receivable Fund
Spent Remaining
to date Commitment
$ 3,220,714
502,330
1,200,374
84,256
1,011,610
61,234
$ 329,592
164,622
50,983
4,997
692
22,931
$ 6,080,518 $ 573,817
Payable Fund Purpose
Due from/to other funds
Governmental Governmental
Economic Development Authority HRA Construction
Governmental Business -type
Temporary Financing Golf Course
Total due from /to other funds
Advances to /from other funds
Governmental Governmental
Economic Development Authority HRA Construction
Governmental Business -type
Temporary Financing Golf Course
Total advances to /from other funds
Interfund activity eliminated from government -wide statements
Internal service fund activities related to the enterprise funds
Total internal balances - government -wide statements
Finance capital purchase
Cash flow purposes
Finance capital purchase
Cash flow purposes
Amount
$ 91,913
30,000
121,913
2,086,184
315,000
2,401,184
(2,178, 097)
658,851
$ 1,003,851
The Economic Development Authority fund loaned $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 four percent. As of December 31, 2011, the balance
outstanding was $2,178,097.
The Temporary Financing fund loaned $379,561 to the Golf Course fund in 2010 to allow the Golf Course to pay off a
bond early. Payments are made as cash is available. As of December 31, 2011, the balance outstanding was $345,000.
-85-
CITY OF NEW HOPE, MINNESOTA
NOTES TO THE FINANCIAL STATEMENTS
DECEMBER 31, 2011
Note 3: DETAILED NOTES ON ALL FUNDS - CONTINUED
Interfund transfers at December 31, 2011 are as follows:
Fund
General
Fund
Transfer in
Economic Energy
Development Temporary Conservation
Authority Financing Project
Transfer out
Economic Development Authority
Temporary Financing
Nonmajor governmental
Sewer Utility enterprise
Water Utility enterprise
Ice Arena enterprise
Storm Water enterprise
Internal Service enterprise
$ 63,319 -
- - - 255,533
98,253 231,919 1,228,229 325,000
44,424 - - -
44,448 - - -
- - - 125,000
19,020 - - -
71,760 - - -
Total transfers
Fund
Transfer out
Economic Development Authority
Temporary Financing
Nonmajor governmental
Sewer Utility enterprise
Water Utility enterprise
Ice Arena enterprise
Storm Water enterprise
Internal Service enterprise
Total transfers
$ - $ - $ 63,319
255,533
366,963 2,000,000 4,250,364
- - 44,424
- - 44,448
- - 125,000
- - 19,020
- 71,760
$ 366,963 $ 2,000,000 $ 4,873,868
• Transfers of $36,115 and $70,765 were made from the Economic Development Authority fund and Nonmajor
governmental funds, respectively, to the General fund to close funds and activity.
• Transfers were made out of the Economic Development Authority fund, Nonmajor governmental funds, Sewer
Utility enterprise fund, Water Utility enterprise fund, Storm Water enterprise fund, and internal Service fund for
$27,204, $27,488, $44,424, $44,448, $19,020, and $71,760, respectively, to the General fund to cover
administrative charges paid for by the General fund.
• Transfers were made from the Nonmajor governmental funds of $231,919, $1,228,229, and $366,963 to the
Economic Development Authority fund, Temporary Financing fund and other Nonmajor governmental funds,
respectively, to close funds.
• Transfers of $255,533, $325,000, and $125,000 were made out of the Temporary Financing fund, Nonmajor
governmental funds, and Ice Arena enterprise fund, respectively, to the Energy Conservation Project fund to
finance the project.
• The Water Utility enterprise fund received a transfer of $2,000,000 from the Nonmajor governmental funds to
cover project costs and the deficit cash balance.
$ 341,224 $ 231,919 $ 1,228,229 $ 705,533
Nonmajor Water
Governmental Utility
Funds Enterprise Total
:•
CITY OF NEW HOPE, MINNESOTA
NOTES TO THE FINANCIAL STATEMENTS
DECEMBER 31, 2011
Note 3: DETAILED NOTES ON ALL FUNDS - CONTINUED
E. Long -term debt
Capital lease
On July 1, 2008, the City purchased an energy optimization system through a capital lease agreement. The lease
agreement qualifies as a capital lease for accounting purposes and, therefore, it has been recorded at the present value of
their future minimum lease payments as of the inception date. The equipment acquired through capital lease has a cost of
$38,892, and a net book value of $7,778 as of December 31, 2011.
The future minimum lease obligations and the net present value of these minimum lease payments as of
December 31, 2011, are as follows:
Year Ending Business -type
December 31 Activities
2012 $ 8,819
2013 3,001
Total minimum payments 11,820
Less amount representing interest (582)
Present value of minimum least payments $ 11,238
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. In addition, G.O. bonds have been issued to refund G.O.
revenue bonds.
The following G.O. bonds will be repaid from future tax levies.
Description
2010B G.O_ Certificates of
Indebtedness
Authorized Interest Issue Maturity Balance at
and Issued Rate Date Date Year End
$ 1,245,000 2.00-2-60% 11/23/10 02/01/20 $ 1,245,000
The annual debt service to maturity for G.O. bonds are as follows:
Year Ending
December 31,
2012
2013
2014
2015
2016
2017-2020
Total
Governmental Activities
Principal
Interest Total
$ 125,000
$ 25,348
$ 150,348
130,000
22,797
152,797
135,000
20,148
155,148
13 5, 000
17,447
152,447
140,000
14,698
154,698
580,000
28,426
608,426
$ 1,245,000
$ 128,864
$ 1,373,864
-87-
CITY OF NEW HOPE, MINNESOTA
NOTES TO THE FINANCIAL STATEMENTS
DECEMBER 31, 2011
Note 3: DETAILED NOTES ON ALL FUNDS - CONTINUED
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 75 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 $389,318 and $293,837, respectively.
Authorized Interest Issue Maturity Balance at
Description and Issued Rate Date Date Year End
G.O. Tax Increment
Bonds of 2004 $ 4,080,000 3.00-4.30 % 04/01/04 02/01/25 $ 3,125,000
G.O. Tax Increment
Bonds of 2005 1,370,000 5-60-5.65 03/01/05 02/01/31 1,285,000
Total G.O. tax increment bonds $ 4,410,000
The annual debt service to maturity for G.O. tax increment bonds are as follows:
Year Ending
Governmental Activities
December 31,
Principal
Interest
Total
2012
$ 205,000
$ 187,353 $
392,353
2013
210,000
180,259
390,259
2014
215,000
172,782
387,782
2015
225,000
164,725
389,725
2016
235,000
156,036
391,036
2017-2021
1,335,000
628,843
1,963,843
2021-2026
1,485,000
296,813
1,781,813
2027-2031
500,000
70,621
570,621
Total
$ 4,410,000
$ 1,857,432 $
6,267,432
Lease revenue bonds
The following bonds were issued to finance the Energy Conservation project and will be repaid primarily with energy
savings.
Description
201 IA Taxable Lease
Revenue Bonds
Authorized Interest Issue Maturity Balance at
and Issued Rate Date Date Year End
$ 3,505,000
5.00 % 12/01/11 12/01/28 $ 3,505,000
ma
CITY OF NEW HOPE, MINNESOTA
NOTES TO THE FINANCIAL STATEMENTS
DECEMBER 31, 2011
Note 3: DETAILED NOTES ON ALL FUNDS - CONTINUED
The annual debt service to maturity for all lease revenue bonds are as follows:
Year Ending
Governmental Activities
Interest
December 31,
Principal Interest
Total
2012
$ - $ 28,741 $
28,741
2013
- 28,741
28,741
2014
- 28,741
28,741
2015
- 28,741
28,741
2016
- 28,741
28,741
2017-2021
- 143,705
143,705
2021 -2026
- 143,705
143,705
2027-2028
3,505,000 57,482
3,562,482
Total
$ 3,505,000 $ 488,597 $
3,993,597
G.O. revenue bonds
The following bonds were issued to finance capital improvements in the enterprise funds. They will be repaid from
future net 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 bonds are expected to require less than 18, 57, and 18
percent of net revenues from the Sewer Utility, Water Utility, and Storm Water funds, respectively. Principal and interest
paid for the current year and total customer net revenues for the Sewer Utility fund were $83,001 and $459,970,
respectively. Principal and interest paid for the current year and total customer net revenues for the Water Utility fund
were $137,883 and $12,114, respectively. Principal and interest paid for the current year and total customer net revenues
for the Storm Water fund were $835,177 and $626,309, respectively.
-89-
Authorized
Interest
Issue
Maturity
Balance at
Description
and Issued
Rate
Date
Date
Year End
2010A G.O. Utility Revenue
Bonds
$ 1,200,000
2.00 %
05/06/10
02/01/14
$ 1,370,000
2010B G.O. Water Revenue
Refunding Bonds
605,000
2.00-3.00
11/23/10
02/01/22
605,000
2011 G.O_ Water Revenue
Bonds
411,738
1.70
02/23/11
08/20/29
385,095
Total G.O. revenue bonds
$ 2,360,095
-89-
CITY OF NEW HOPE, MINNESOTA
NOTES TO THE FINANCIAL STATEMENTS
DECEMBER 31, 2011
Note 3: DETAILED NOTES ON ALL FUNDS - CONTINUED
The annual debt service to maturity for G.O. revenue bonds are as follows:
Year Ending
December 31,
2012
2013
2014
2015
2016
2017-2021
2021-2026
2027-2029
Business -type Activities
Principal
Interest
Total
$ 334,000
$ 49,460
$ 383,460
344,000
42,760
386,760
339,000
35,986
374,986
150,000
31,163
181,163
150,000
28,081
178,081
796,000
83,257
879,257
180,000
13,220
193,220
67,095
2,537
69,632
Total
Changes in long -term liabilities
$ 2,360,095 $ 286,464 $ 2,646,559
Long -term liability activity for the year ended December 31, 2011, was as follows:
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.
-90-
Beginning
Ending
Due Within
Balance
Increases
Decreases
Balance
One Year
Governmental activities
Bonds payable
G.O. special assessment bonds
$
775,000
$
-
$ (775,000)
G.O. bonds and certificates
1,280,000
-
(35,000)
1,245,000
125,000
G.O. tax increment bonds
4,605,000
-
(195,000)
4,410,000
205,000
Lease revenue bonds
-
3,505,000
-
3,505,000
-
Add: premiums on bonds
16,006
-
(1,759)
14,247
-
Total bonds payable, net
6,676,006
3,505,000
(1,006,759)
9,174,247
330,000
Compensated absences payable
475,772
496,945
(502,565)
470,152
470,152
Other postemployment
benefits payable
38,819
85,464
(53,401)
70,882
-
Governmental activity
long -term liabilities
$
7,190,597
$
4,087,409
$ (1,562,725)
$
9,715,281
$ 800,152
Business -type activities
Bonds payable
G.O. revenue bonds
$
2,930,000
$
411,738
$ (981,643)
$
2,360,095
$ 334,000
Add: premiums on bonds
16,005
-
(3,649)
12,356
-
Less: bond discount
(12,980)
-
2,568
(10,412)
-
Total bonds payable, net
2,933,025
411,738
(982,724)
2,362,039
334,000
Capital leases payable
19,756
-
(8,518)
11,238
8,307
Other postemployment
benefits payable
7,130
14,144
(8,827)
12,447
-
Business -type activity
long -term liabilities
$
2,959,911
$
425,882
$ (1,000,069)
$
2,385,724
$ 342,307
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.
-90-
CITY OF NEW HOPE, MINNESOTA
NOTES TO THE FINANCIAL STATEMENTS
DECEMBER 31, 2011
Note 3: DETAILED NOTES ON ALL FUNDS - CONTINUED
F. Components of fund balance
At December 31, 2011, portions of the City's fund balance are not available for appropriation due to not being in
spendable form ( Nonspendable), legal restrictions (Restricted), City Council action (Committed), policy and/or intent
(Assigned). The following is a summary of the components of fund balance:
Purpose
Nonspendable
Prepaid items
Restricted for
Economic development
Capital improvements
Debt service
Public safety police expenditures
Ice arena
Economic
Development HRA Street
General Authority Construction Infrastructure
$ 14,366 $ - $ - $ -
$ - $ - $ 5,554,293 $ -
Total restricted
Committed to
Operations
Economic development
Total committed
Assigned to
Street improvements
General improvements
Capital equipment
Park improvements
Total assigned
$ - $ - $ 5,554,293 $ -
- 4,479,550 - -
$ - $ 4,479,550 $ - $ -
$ - $ - $ - $ 1,986,543
$ - $ - $ - $ 1,986,543
-91-
CITY OF NEW HOPE, MINNESOTA
NOTES TO THE FINANCIAL STATEMENTS
DECEMBER 31, 2011
Note 3: DETAILED NOTES ON ALL FUNDS - CONTINUED
Energy Other
Temporary Conservation Governmental
Purpose Financing Project Funds Total
Nonspendable
Prepaid items $ - $ - $ - $ 14,366
Restricted for
Economic development $ - $ - $ - $ 5,554,293
Capital improvements - 1,445,050 - 1,445,050
Debt service - - 465,243 465,243
Public safety police expenditures - - 85,753 85,753
Ice arena - 8,825 8,825
Total restricted $ - $ 1,445,050 $ 559,821 $ 7,559,164
Committed to
Operations $ - $ $ 186,897 $ 186,897
Economic development - - 4,479,550
Total committed $ - $ - $ 186,897 $ 4,666,447
Assigned to
Street improvements $ - $ - $ - $ 1,986,543
General improvements 3,007,417 702,850 - 3,710,267
Capital equipment - - 341,991 341,991
Park improvements - - 1,373,620 1,373,620
Total assigned $ 3,007,417 $ 702,850 $ 1,715,611 $ 7,412,421
-92-
CITY OF NEW HOPE, MINNESOTA
NOTES TO THE FINANCIAL STATEMENTS
DECEMBER 31, 2011
Note 4: OTHER INFORMATION
A. Defined benefit pension plan - public employees retirement association (PERA) - statewide
1. Plan description
All full -time and certain part-time employees of the City are covered by defined benefit plans administered by the
Public Employees Retirement Association of Minnesota (PERA). PERA administers the General Employees
Retirement Fund (GERF) and the Public Employees Police and Fire Fund (PEPFF), which are cost sharing,
multiple - employer retirement plans. These plans are established and administered in accordance with Minnesota
statutes, chapters 353 and 356.
GERF members belong to either the Coordinated Plan or the Basic Plan. Coordinated Plan members are covered by
Social Security and Basic Plan members are not. All new members must participate in the Coordinated Plan. All
police officers, fire- fighters and peace officers who qualify for membership by statute are covered by the PEPFF.
PERA provides retirement benefits as well as disability benefits to members, and benefits to survivors upon death of
eligible members. Benefits are established by state statute, and vest after three years of credited service. The defined
retirement 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 PERA's Coordinated and Basic Plan members. The retiring member
receives the higher of the step -rate benefit accrual formula (Method 1) or a level accrual formula (Method 2). Under
Method 1, the annuity accrual rate for a Basic Plan member is 2.2 percent of average salary for each of the first
10 years of service and 2.7 percent for each remaining year. The annuity accrual rate for a Coordinated Plan member
is 1.2 percent of average salary for each of the first 10 years and 1.7 percent for each remaining year. Under
Method 2, the annuity accrual rate is 2.7 percent of average salary for Basic Plan members and 1.7 percent for
Coordinated Plan members for each year of service. For PEPFF members, the annuity accrual rate is 3.0 for each
year of service. For all PEPFF members, and for GERF members hired prior to July 1, 1989 whose annuity is
calculated using Method 1, a full annuity is available when age plus years of service equal 90. Normal retirement
age is 55 for PEPFF members and 65 for Basic and Coordinated members hired prior to July 1, 1989. Normal
retirement age is the age for unreduced Social Security benefits capped at 66 for Coordinated members hired on or
after July 1, 1989. A reduced retirement annuity is also available to eligible members seeking early retirement.
There are different types of annuities available to members upon retirement. A single -life annuity is a lifetime
annuity that ceases upon the death of the retiree - no survivor annuity is payable. There are also various types of
joint and survivor annuity options available which will be payable over joint lives. Members may also leave their
contributions in the fund upon termination of public service in order to qualify for a deferred annuity at retirement
age. Refunds of contributions are available at any time to members who leave public service, but before retirement
benefits begin.
The benefit provisions stated in the previous paragraphs of this section are current provisions and apply to active
plan participants. 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.
PERA issues a publicly available financial report that includes financial statements and required supplementary
information for GERF and PEPFF. That report may be obtained on the Internet at www.mnpera.org, by writing to
PERA, 60 Empire Street, Suite #200, St. Paul, Minnesota 55103 -1855 or by calling (651) 296 -7460 or
(800) 652 -9026.
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CITY OF NEW HOPE, MINNESOTA
NOTES TO THE FINANCIAL STATEMENTS
DECEMBER 31, 2011
Note 4: OTHER INFORMATION - CONTINUED
2. Funding policy
Minnesotaa statutes, chapter 353 sets the rates for employer and employee contributions. These statutes are
established and amended by the State legislature. The City makes annual contributions to the pension plans equal to
the amount required by Minnesota statutes. GERF Basic Plan members and Coordinated Plan members were
required to contribute 9.10 percent and 6.25 percent, respectively, of their annual covered salary in 2011. PEPFF
members were required to contribute 9.60 percent of their annual covered salary in 2011. The City is required to
contribute the following percentages of annual covered payroll: 11.78 percent for Basic Plan GERF members, 7.25
percent for Coordinated Plan GERF members, and 14.40 percent for PEPFF members. The City's contributions to
GERF for the years ending December 31, 2011, 2010 and 2009 were $250,873, $217,644, and $231,739,
respectively. The City's contributions to PEPFF for the years ending December 31, 2011, 2010 and 2009 were
$314,461, $344,624, and $307,857, respectively. The City's contributions were equal to the contractually required
contributions for each year as set by Minnesota statute.
B. Postemployment benefits other than pensions
1. 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. There are 67 active participants and 9 retired
participants. 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.
2. 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 2011, the City contributed $62,228 to the plan.
3. Annual Other Postemployment Benefit cost and net Other Postemployment Benefit obligation
The City's annual Other Postemployment Benefit (OPEB) cost (expense) is calculated based on the annual required
contribution of the employer (ARC). The City has elected to calculate the ARC and related information using the
alternative measurement method permitted by GASB Statement No. 45 for employers in plans with fewer than one
hundred total plan members. The ARC represents a level of funding that, if paid on an ongoing basis, is projected to
cover normal cost each year and to amortize any unfunded actuarial liabilities (or funding excess) over a period not
to exceed thirty years.
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CITY OF NEW HOPE, MINNESOTA
NOTES TO THE FINANCIAL STATEMENTS
DECEMBER 31, 2011
Note 4: OTHER INFORMATION - CONTINUED
The following table shows the components of the City's annual OPEB cost for the year, the amount actually
contributed to the plan, and changes in the City's net OPEB obligation:
Annual required contribution
$ 99,799
Interest on net OPEB obligation
1,608
Adjustment to annual required contribution
(1,799)
Annual OPEB cost (expense)
99,608
Contributions made
(62,228)
Increase in net OPEB obligation
37,380
Net OPEB obligation- beginning of year
45,949
Net OPEB obligation- end of year $ 83,329
The City's annual OPEB cost, the percentage of annual OPEB cost contributed to the plan, and the net OPEB
obligation for fiscal year 2011 and the preceding two fiscal years are as follows:
Three Year Trend Information
Percentage
Year Annual Annual OPEB Net OPEB
Ending OPEB Cost Contributed Obligation
12/31/11 $ 99,608 62.5 % $ 83,329
12/31/10 20,769 34.6 45,949
12/31/09 20,759 22.7 32,374
4. Funded status and funding progress
As of January 1, 2011, the actuarial accrued liability for benefits was $1,001,568, all of which was unfunded. The
covered payroll (annual payroll of active employees covered by the plan) was $4,266,321, and the ratio of the
unfunded actuarial accrued liability to the covered payroll was 23.5 percent.
The projection of future benefit payments for an ongoing plan involves estimates of the value of reported amounts
and assumptions about the probability of occurrence of events far into the future. Examples include assumptions
about future employment, mortality, and the healthcare cost trend. Amounts determined regarding the funded status
of the plan and the annual required contributions of the employer are subject to continual revision as actual results
are compared with past expectations and new estimates are made about the future. The Schedule of Funding
Progress, presented as required supplementary information following the notes to the financial statements, presents
multi -year trend information about whether the actuarial value of plan assets is increasing or decreasing over time
relative to the actuarial accrued liabilities for benefits.
-95-
CITY OF NEW HOPE, MINNESOTA
NOTES TO THE FINANCIAL STATEMENTS
DECEMBER 31, 2011
Note 4: OTHER INFORMATION - CONTINUED
5. Methods and assumptions
Projections of benefits for financial reporting purposes are based on the substantive plan (the plan as understood by
the employer and plan members) and include the types of benefits provided at the time of each valuation and the
historical pattern of sharing of benefit costs between the employer and plan members to that point. The methods and
assumptions used include techniques that are designed to reduce the effects of short-term volatility in actuarial
accrued liabilities and the actuarial value of assets, consistent with the long -term perspective of the calculations.
The following simplifying assumptions were made:
Retirement age for active employees - Based on the historical average age of retirement and expectations of
management, the retirement age for active plan members was determined on an individual level. In addition,
spouses of retired employees were assumed to discontinue coverage on the plan when the retired employee
reaches Medicare age.
Marital status - Marital status of members at the calculation date was assumed to continue throughout
retirement.
Mortality - Life expectancies were based on mortality tables from the National Center for Health Statistics. The
2007 United States Life Tables for Males and for Females were used.
Turnover - Non - group - specific age -based turnover data from GASB Statement No. 45 were used as the basis
for assigning active members a probability of remaining employed until the assumed retirement age and for
developing an expected future working lifetime assumption for purposes of allocating to periods the present
value of total benefits to be paid.
Healthcare cost trend rate - The expected rate of increase in healthcare insurance premiums was based on
actual rate changes for 2011 and 2012 along with projections of the Office of the Actuary at the Centers for
Medicare & Medicaid Services. A rate increase of 5.2 percent initially in 2011, followed by a 6.4 percent
decrease in 2012, to an ultimate average rate increase of 5.2 percent after six years, was used.
Health insurance premiums - 2010, 2011, and 2012 health insurance premiums for retirees were used as the
basis for calculation of the present value of total benefits to be paid.
Inflation rate - The expected long -term inflation assumption of 2.4 percent was based on average changes over
the past ten years in the Consumer Price Index for Urban Wage Earners and Clerical Workers (CPI -W) in The
2010 Annual Report of the Board of Trustees of the Federal Old -Age and Survivors Insurance and Disability
Insurance Trust Funds for an intermediate growth scenario.
Payroll growth rate - The expected long -term payroll growth rate was assumed to equal the rate of inflation.
Based on the historical and expected returns of the City's short-term investment portfolio, a discount rate of
3.5 percent was used. In addition, a simplified version of the entry age actuarial cost method was used. The
unfunded actuarial accrued liability is being amortized as a level percentage of projected payroll on an open basis.
The remaining amortization period at December 31, 2011 was thirty years.
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CITY OF NEW HOPE, MINNESOTA
NOTES TO THE FINANCIAL STATEMENTS
DECEMBER 31, 2011
Note 4: OTHER INFORMATION — CONTINUED
C. Contingencies
Federal and State funds
The City receives financial assistance from federal and state government agencies in the form of grants. The
disbursement of funds received under these programs generally requires compliance with the terms and conditions
specified in the grant agreements and are subject to audit by the grantor agencies. Any disallowed claims resulting from
such audits could become a liability of the applicable fund. However, in the opinion of management, any such
disallowed claims will not have a material effect on any of the financial statements of the individual fund types included
herein or on the overall financial position of the City at December 31, 2011.
Tax increment districts
The City's tax increment districts are subject to review by the State of Minnesota Office of the State Auditor (OSA). Any
disallowed claims or misuse of tax increment could become a liability of an applicable fund. Management has indicated
that they are not aware of any instances of noncompliance which would have a material effect on the financial
statements.
Contingent liabilities
Amounts received or receivable from grant agencies are subject to audit and adjustment by grantor agencies, principally
the federal government. Any disallowed claims, including amounts already collected, may constitute a liability of the
applicable funds. The amount, if any, of expenditures that may be disallowed by the grantor cannot be determined at this
time, although the City expects such amounts, if any, to be immaterial.
The City is a defendant in various lawsuits. Although the outcome of these lawsuits is not presently determinable, in the
opinion of the City's counsel the resolution of these matters will not have a material adverse effect on the financial
condition of the City.
D. 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; injuries to employees; and natural disasters for which the City carries insurance. The City obtains insurance
through participation in the League of Minnesota Cities Insurance Trust ( LMCIT), which is a risk sharing pool with
approximately 800 other governmental units. The City pays an annual premium to LMCIT for its workers compensation
and property and casualty insurance. The LMCIT is self - sustaining through member premiums and will reinsure for
claims above a prescribed dollar amount for each insurance event. Settled claims have not exceeded the City's coverage
in any of the past three fiscal years.
Liabilities are reported when it is probably that a loss has occurred and the amount of the loss can be reasonably
estimated. Liabilities, if any, include an amount for claims that have been incurred but not reported (IBNRs). The City's
management is not aware of any incurred but not reported claims.
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, 2011, 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, 2011 is undetermined.
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CITY OF NEW HOPE, MINNESOTA
NOTES TO THE FINANCIAL STATEMENTS
DECEMBER 31, 2011
Note 4: OTHER INFORMATION - CONTINUED
E. Joint ventures and governed organizations
Joint ventures
Joint Water Commission
The City is a party to a joint powers agreement through which the Golden Valley, Crystal, and New Hope Joint Water
Commission (JWC) is formed. The agreement provides for the operation and ownership of a water supply, distribution,
and support system in and for the cities of Golden Valley, Crystal, and New Hope. The City purchases water used by its
residents from the JWC and shares in the JWC's operation, maintenance, repair, and replacement costs based on its water
usage.
As provided for in the joint powers agreement, in the event of termination, all real and personal property and cash held
by the JWC would be divided among the members by unanimous consent. Such division would be based on refunded
monetary contributions made to the JWC 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 City has no
information on the total construction costs it has paid.
Based on the above, the City has not recorded an interest in the JWC up to the present time. The asset recorded in the
Water fund as an investment in the JWC represents the accumulated contributions for working capital. This amount
approximates the City's share in the JWC fund balance at December 31, 2011.
The following financial information is taken from the JWC's audited financial statements for the year ended
December 31, 2011:
Total assets $3,505,492
Total liabilities $ 919,795
Total net assets $2,585,697
Total revenue $7,917,561
Total expenses $7,327,533
The City's share of JWC's total revenue for the year ended December 31, 2011 was $2,103,571 or 29 percent.
JWC financial statements are available from the City of Golden Valley, attention: Finance Department, 7800 Golden
Valley Road, Golden Valley, Minnesota, 55427 -4508.
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 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 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, 2011,
the amount reported as investment in joint venture was $1,600,846.
According to a formula in the agreement, the City's share of the District's budget is 49 percent. Payments to the District
in 2011 totaled $970,970. The District's financial statements for the period ended December 31, 2011 are available at the
District office located at: 4251 Xylon Avenue North, New Hope, Minnesota 55428.
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CITY OF NEW HOPE, MINNESOTA
NOTES TO THE FINANCIAL STATEMENTS
DECEMBER 31, 2011
Note 4: OTHER INFORMATION - CONTINUED
Jointly controlled organizations
1. Basset 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. The City's 2011 contribution to the BCWMC
for its fiscal year ended December 31, 2011 was $23,840, representing 5.0 percent of member's contributions for the
year.
2. Shingle Creek Watershed Management Commission (SCWMC)
The City is one of nine member cities of the SCWMC, a joint powers organization 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, 2011 was $28,080, representing 7.9 percent of members' contributions for the year.
3. 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 $16,945 for these services in 2011.
4. 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 2011, total charges of $233,194
were incurred for these services.
5. Local Governmental Information Systems (LOGIS)
The City is one of over 30 local government units in Minnesota making up a consortium that have joined together to
provide one another with a full service data processing solution. Fees paid to the consortium are based on the level
of service required and the applications utilized. In 2011, the City incurred charges of $398,705 for application
support, systems development, Internet access, and network support services.
F. Subsequent events
2012 bonds issued
On January 11, 2012, the City issued $2,695,000 of G.O. Tax Increment Refunding Bonds, Series 2012A. The proceeds
of the bonds will be used for the advanced refunding of the G.O. Tax Increment Bonds of 2004. The Series 2012A bonds
bear an average interest rate of 2.1 percent and mature in 2025.
On January 11, 2012, the City issued $1,330,000 of G.O. Taxable Tax Increment Refunding Bonds, Series 2012B. The
proceeds of the bonds will be used for the advanced refunding of the G.O. Taxable Tax Increment Bonds of 2005. The
Series 2012B bonds bear an average interest rate of 3.8 percent and mature in 2031.
Kmart purchase agreement
Effective March 15, 2012, the Economic Development Authority entered into a purchase agreement with Gator New
Hope, LLC to acquire property with a purchase price of $4.5 million. It is anticipated that existing funds will be used to
acquire the property. The closing date is contemplated to be held on July 2, 2012.
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INTENTIONALLY
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REQUIRED SUPPLEMENTARY INFORMATION
CITY OF NEW HOPE
NEW HOPE, MINNESOTA
FOR THE YEAR ENDED
DECEMBER 31, 2011
-lol-
CITY OF NEW HOPE, MINNESOTA
REQUIRED SUPPLEMENTARY INFORMATION
DECEMBER 31, 2011
Schedule of funding progress for the postemployment benefit plan
Funded
Ratio
UAAL as a
Unfunded
Percentage
Covered
Actuarial
Actuarial Actuarial
Actuarial
Accrued
Valuation Value of
Accrued
Liability
Date Assets
Liability
(UAAL)
O1 /01 /11 $ -
$ 1,001,568
$ 1,001,568
12/31/08 -
187,037
187,037
Funded
Ratio
-102-
UAAL as a
Percentage
Covered
of Covered
Payroll
Payroll
$ 4,266,321
23.5 %
6,256,409
3.0
-102-
COMBINING AND INDIVIDUAL FUND
FINANCIAL STATEMENTS AND SCHEDULES
CITY OF NEW HOPE
NEW HOPE, MINNESOTA
FOR THE YEAR ENDED
DECEMBER 31, 2011
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CITY OF NEW HOPE, MINNESOTA
NONMAJOR GOVERNMENTAL FUNDS
COMBINING BALANCE SHEET
DECEMBER 31, 2011
ASSETS
Cash and temporary investments
Receivables
Unremitted tax collections
Accounts
Special assessments
Delinquent
Deferred
TOTAL ASSETS
LIABILITIES AND FUND BALANCES
LIABILITIES
Accounts and contracts payable
Due to other governments
TOTAL LIABILITIES
FUND BALANCES
Restricted for
Debt service
Public safety police expenditures
Ice arena
Committed to operations
Assigned to
Capital equipment
Park improvements
TOTAL FUND BALANCES
TOTAL LIABILITIES AND
FUND BALANCES
Total
Nonmaj or
Special Debt Capital Governmental
Revenue Service Projects Funds
$ 247,877 $ 463,015 $ 1,771,835 $ 2,482,727
- 2,228 - 2,228
25,861 - - 25,861
1,655 - - 1,655
6,212 - - 6,212
$ 281,605 $ 465,243 $ 1,771,835 $ 2,518,683
$ 130 $
130
$ 51,224 $ 51,354
5,000 5,000
56,224 56,354
-
465,243 -
465,243
85,753
- -
85,753
8,825
- -
8,825
186,897
- -
186,897
-
- 341,991
341,991
-
- 1,373,620
1,373,620
281,475
465,243 1,715,611
2,462,329
$ 281,605 $
465,243 $ 1,771,835
$ 2,518,683
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CITY OF NEW HOPE, MINNESOTA
NONMAJOR GOVERNMENTAL FUNDS
COMBINING STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES
FOR THE YEAR ENDED DECEMBER 31, 2011
-105-
Total
Nonmaj or
Special
Debt
Capital
Governmental
Revenue
Service
Projects
Funds
REVENUES
Taxes
Property taxes
$ 51,520
$ 192,105
$ 296,000
$ 539,625
Tax increments
-
293,837
-
293,837
Intergovernmental
-
38,761
-
38,761
Charges for services
218,883
-
22,745
241,628
Fines and forfeitures
13,825
-
-
13,825
Special assessments
-
75,636
-
75,636
Investment earnings
27,879
57,503
37,977
123,359
Miscellaneous
12,067
-
1,900
13,967
TOTAL REVENUES
324,174
657,842
358,622
1,340,638
EXPENDITURES
Current
General government
1,658
-
-
1,658
Public safety
2,596
-
-
2,596
Public works
267,848
-
-
267,848
Culture and recreation
4,238
-
-
4,238
Capital outlay
Culture and recreation
-
-
499,247
499,247
Debt service
Principal
-
1,005,000
-
1,005,000
Interest
-
247,973
-
247,973
TOTAL EXPENDITURES
276,340
1,252,973
499,247
2,028,560
EXCESS (DEFICIENCY) OF REVENUES
OVER (UNDER) EXPENDITURES
47,834
(595,131)
(140,625)
(687,922)
OTHER FINANCING SOURCES (USES)
Transfers in
-
-
366,963
366,963
Transfers out
(994,646)
(3,228,229)
(27,489)
(4,250,364)
TOTAL OTHER FINANCING
SOURCES (USES)
(994,646)
(3,228,229)
339,474
(3,883,401)
NET CHANGE IN FUND BALANCES
(946,812)
(3,823,360)
198,849
(4,571,323)
FUND BALANCES, JANUARY 1
1,228,287
4,288,603
1,516,762
7,033,652
FUND BALANCES, DECEMBER 31
$ 281,475
$ 465,243
$ 1,715,611
$ 2,462,329
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INTENTIONALLY
-106-
CITY OF NEW HOPE, MINNESOTA
NONMAJOR SPECIAL REVENUE FUNDS
Community Development Fund - This fund accounts for revenue received from the Department of Housing and Urban
Redevelopment. Expenditures are restricted to approved projects as outlined by the act.
Safety Camp Fund - This fund accounts for the activities for a children's three -day safety camp sponsored by the City.
Storm Sewer Fund - This fund is used to account for revenue derived from property taxes and other revenue to be used to financing
operating costs related to the two storm water districts in the City.
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.
Liquor Reserve Fund - This fund accounts for residual funds from the City's discontinued municipal liquor operation and interest
earned thereon, to be used to support certain City proprietary fund operations.
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.
-107-
CITY OF NEW HOPE, MINNESOTA
NONMAJOR SPECIAL REVENUE FUNDS
SUBCOMBINING BALANCE SHEET
DECEMBER 31, 2011
ASSETS
Cash and temporary investments
Receivables
Accounts
Special assessments
Delinquent
Deferred
TOTAL ASSETS
LIABILITIES AND FUND BALANCES
LIABILITIES
Accounts and contracts payable
FUND BALANCES
Restricted for
Public safety police expenditures
Ice arena
Committed to operations
TOTAL FUND BALANCES
TOTAL LIABILITIES AND
FUND BALANCES
9008 9024 9013/9014
Community
Development Safety Camp Storm Sewer
$ - $ - $ 16,862
16,862
- 16,862
16,862
$ - $ - $ 16,862
-108-
9021
9016 9010
9017
Police
Solid Waste Liquor
Ice Arena
Forfeitures
Management Reserve
Endowment
Total
$ 85,883
$ 136,307 $ -
$ 8,825
$ 247,877
-
25,861 -
-
25,861
-
1,655 -
-
1,655
-
6,212 -
-
6,212
$ 85,883
$ 170,035 $ -
$ 8,825
$ 281,605
$ 130 $ - $ - $ - $ 130
85,753 -
- 170,035
85,753 170,035
- 85,753
8,825 8,825
- 186,897
8,825 281,475
$ 85,883 $ 170,035 $ - $ 8,825 1 $ 281,605
-109-
CITY OF NEW HOPE, MINNESOTA
NONMAJOR SPECIAL REVENUE FUNDS
SUBCOMBINING STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES
FOR THE YEAR ENDED DECEMBER 31, 2011
9008 9024 9013/9014
Community
Development Safety Camp Storm Sewer
REVENUES
Taxes
Property taxes
Charges for services
Fines and forfeitures
Investment earnings
Miscellaneous
TOTAL REVENUES
EXPENDITURES
Current
General government
Other services and charges
Public safety
Supplies
Public works
Other services and charges
Culture and recreation
Personnel services
Supplies
Other services and charges
TOTAL EXPENDITURES
EXCESS (DEFICIENCY) OF REVENUES
OVER (UNDER) EXPENDITURES
OTHER FINANCING SOURCES (USES)
Transfers out
NET CHANGE IN FUND BALANCES
FUND BALANCES, JANUARY 1
FUND BALANCES, DECEMBER 31
$ - $ - $ 51,520
2,887 142 93
- 341 -
2,887 483 51,613
1,658 - -
- 51,920
997 -
2,591 -
1,658 4,238 51,920
1,229 (3,755) (307)
(231,919) (7,416) -
(230,690) (11,171) (307)
230,690 11,171 17,169
$ - $ - $ 16,862
-110-
9021
9016
9010
9017
Police
Solid Waste
Liquor
Ice Arena
Forfeitures
Management
Reserve
Endowment
Total
$ -
$ -
$ -
$ -
$ 51,520
-
218,883
-
-
218,883
13,825
-
-
-
13,825
3,720
3,608
17,282
147
27,879
6,726
-
-
5,000
12,067
24,271
222,491
17,282
5,147
324,174
1,658
2,596 - - - 2,596
- 215,928 - - 267,848
- 997
- - - 2,591
- - - - 650
2,596 215,928 - - 276,340
21,675 6,563 17,282 5,147 47,834
(88,320) - (666,991) - (994,646)
(66,645) 6,563 (649,709) 5,147 (946,812)
152,398 163,472 649,709 3,678 1,228,287
$ 85,753 $ 170,035 $ - $ 8,825 $ 281,475
-111-
CITY OF NEW HOPE, MINNESOTA
SPECIAL REVENUE FUND - COMMUNITY DEVELOPMENT FUND
SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES -
BUDGET AND ACTUAL
FOR THE YEAR ENDED DECEMBER 31, 2011
REVENUES
Investment earnings
EXPENDITURES
Current
General government
Other services and charges
EXCESS OF REVENUES
OVER EXPENDITURES
OTHER FINANCING USES
Transfers out
Z.
(2,745)
(231,919) (231,919)
NET CHANGE IN FUND BALANCES 3,974 3,974 (230,690) (234,664)
FUND BALANCES, JANUARY 1 230,690 230,690 230,690 -
FUND BALANCES, DECEMBER 31 $ 234,664 $ 234,664 $ - $ (234,664)
Budgeted Amounts Actual Variance with
Original Final Amounts Final Budget
$ 5,700 $ 5,700 $ 2,887 $ (2,813)
1,726 1,726 1,658
3,974
3,974 1,229
-112-
CITY OF NEW HOPE, MINNESOTA
SPECIAL REVENUE FUND - SAFETY CAMP FUND
SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES -
BUDGET AND ACTUAL
FOR THE YEAR ENDED DECEMBER 31, 2011
EXCESS (DEFICIENCY) OF REVENUES
OVER (UNDER) EXPENDITURES 315 315 (3,755) (4,070)
OTHER FINANCING USES
Transfers out - - (7,416) (7,416)
NET CHANGE IN FUND BALANCES 315 315 (11,171) (11,486)
FUND BALANCES, JANUARY 1 11,171 11,171 11,171 -
FUND BALANCES, DECEMBER 31 $ 11,486 $ 11,486 $ - $ (11,486)
-113-
Budgeted Amounts
Actual
Variance with
Original Final
Amounts
Final Budget
REVENUES
Charges for services
$ 3,240 $
3,240
$ -
$ (3,240)
Investment earnings
300
300
142
(158)
Miscellaneous
4,000
4,000
341
(3,659)
TOTAL REVENUES
7,540
7,540
483
(7,057)
EXPENDITURES
Current
Culture and recreation
Personnel services
1,460
1,475
997
478
Supplies
5,500
5,500
2,591
2,909
Other services and charges
265
250
650
(400)
TOTAL EXPENDITURES
7,225
7,225
4,238
2,987
EXCESS (DEFICIENCY) OF REVENUES
OVER (UNDER) EXPENDITURES 315 315 (3,755) (4,070)
OTHER FINANCING USES
Transfers out - - (7,416) (7,416)
NET CHANGE IN FUND BALANCES 315 315 (11,171) (11,486)
FUND BALANCES, JANUARY 1 11,171 11,171 11,171 -
FUND BALANCES, DECEMBER 31 $ 11,486 $ 11,486 $ - $ (11,486)
-113-
-114-
CITY OF NEW HOPE, MINNESOTA
SPECIAL REVENUE FUND - STORM SEWER FUND
SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES -
BUDGET AND ACTUAL
FOR THE YEAR ENDED DECEMBER 31, 2011
Budgeted Amounts
Actual
Variance with
Original Final
Amounts
Final Budget
REVENUES
Taxes
Property taxes
$ 51,520 $ 51,520
$ 51,520
$ -
Investment earnings
400 400
93
(307)
TOTAL REVENUES
51,920 51,920
51,613
(307)
EXPENDITURES
Current
Public works
Other services and charges
51,920 51,920
51,920
-
NET CHANGE IN FUND BALANCES
- -
(307)
(307)
FUND BALANCES, JANUARY 1
17,169 17,169
17,169
-
FUND BALANCES, DECEMBER 31
$ 17,169 $ 17,169
$ 16,862
$ (307)
-114-
CITY OF NEW HOPE, MINNESOTA
SPECIAL REVENUE FUND - SOLID WASTE MANAGEMENT FUND
SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES -
BUDGET AND ACTUAL
FOR THE YEAR ENDED DECEMBER 31, 2011
EXPENDITURES
Current
Public works
Other services and charges 253,734 253,734 215,928 37,806
NET CHANGE IN FUND BALANCES 3,766 3,766 6,563 2,797
FUND BALANCES, JANUARY 1
Budgeted Amounts
Actual
Variance with
FUND BALANCES, DECEMBER 31
Original Final
Amounts
Final Budget
REVENUES
Charges for services
$ 253,300 $ 253,300
$ 218,883
$ (34,417)
Investment earnings
4,200 4,200
3,608
(592)
TOTAL REVENUES
257,500 257,500
222,491
(35,009)
EXPENDITURES
Current
Public works
Other services and charges 253,734 253,734 215,928 37,806
NET CHANGE IN FUND BALANCES 3,766 3,766 6,563 2,797
FUND BALANCES, JANUARY 1
163,472
163,472
163,472 -
FUND BALANCES, DECEMBER 31
$ 167,238 $
167,238 $
170,035 $ 2,797
-115-
THIS PAGE IS LEFT BLANK
INTENTIONALLY
-116-
CITY OF NEW HOPE, MINNESOTA
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.
General Obligation Taxable Fund - This fund accounts for revenue from property tax, interest income, and transfers to pay for the
principal and interest on the General Obligation Taxable Bonds sold by the City in 1996.
2010B G.O. Equipment Bonds Fund - 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 2010B G.O. Equipment Bonds.
HRA Bonds Fund - This fund accounts for revenue from property taxes and interest income to pay for the principal and interest on
the City's tax increment bond issues.
Improvement Bond Redemption Fund - This fund is used to account for the payment of principal and interest on special assessment
bonds issued to finance improvement projects
-117-
ASSETS
Cash and temporary investments
Unremitted tax collections receivable
TOTAL ASSETS
FUND BALANCES
Restricted for debt service
CITY OF NEW HOPE, MINNESOTA
NONMAJOR DEBT SERVICE FUNDS
SUBCOMBINING BALANCE SHEET
DECEMBER 31, 2011
9140 9145 9117 -9119
General 2010B
Obligation G.O. Equipment
Taxable Bonds HRA Bonds
9143/9146
Improvement
Bond
Redemption Total
$ 35,252 $ 137,070 $ 290,693 $ - $ 463,015
- - 2,228 - 2,228
$ 35,252 $ 137,070 $ 292,921 $ - $ 465,243
$ 35,252 $ 137,070 $ 292,921 $ - $ 465,243
-118-
CITY OF NEW HOPE, MINNESOTA
NONMAJOR DEBT SERVICE FUNDS
SUBCOMBINING STATEMENT OF REVENUES, EXPENDITURES AND
CHANGES IN FUND BALANCES
FOR THE YEAR ENDED DECEMBER 31, 2011
9140 9145 9117 -9119 9143/9146
REVENUES
Taxes
Property taxes
Tax increments
Intergovernmental
Special assessments
Investment earnings
TOTAL REVENUES
EXPENDITURES
Debt service
Principal
Interest
TOTAL EXPENDITURES
EXCESS (DEFICIENCY) OF REVENUES
OVER (UNDER) EXPENDITURES
OTHER FINANCING SOURCES (USES)
Transfers out
NET CHANGE IN FUND BALANCES
FUND BALANCES, JANUARY 1
FUND BALANCES, DECEMBER 31
General
2010B
Improvement
Obligation
G.O. Equipment
Bond
Taxable
Bonds
HRA Bonds
Redemption
Total
$ 38,005
$ 154,100
$ -
$ -
$ 192,105
-
-
293,837
293,837
-
-
38,761
-
38,761
-
-
-
75,636
75,636
324
1,293
8,273
47,613
57,503
38,329
155,393
340,871
123,249
657,842
35,000
-
195,000
775,000
1,005,000
1,199
18,323
194,318
34,133
247,973
36,199
18,323
389,318
809,133
1,252,973
2,130
137,070
(48,447)
(685,884)
(595,131)
-
-
-
(3,228,229)
(3,228,229)
2,130
137,070
(48,447)
(3,914,113)
(3,823,360)
33,122
-
341,368
3,914,113
4,288,603
$ 35,252
$ 137,070
$ 292,921
$
$ 465,243
-119-
THIS PAGE IS LEFT BLANK
INTENTIONALLY
-120-
CITY OF NEW HOPE, MINNESOTA
NONMAJOR CAPITAL PROJECT 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.
Park Infrastructure Fund - The Park Infrastructure fund is used to account for park improvement projects.
-121-
CITY OF NEW HOPE, MINNESOTA
NONMAJOR CAPITAL PROJECTS FUNDS
SUBCOMBINING BALANCE SHEET
DECEMBER 31, 2011
9010 9233
Fire Park
Capital Projects Infrastructure Total
ASSETS
Cash and temporary investments $ 341.991 $ 1,429,844 $ 1,771,835
LIABILITIES AND FUND BALANCES
LIABILITIES
Accounts and contracts payable $ - $ 51,224 $ 51,224
Due to other governments - 5,000 5,000
TOTAL LIABILITIES - 56,224 56,224
FUND BALANCES
Assigned to
Capital equipment 341,991 - 341,991
Park improvements - 1,373,620 1,373,620
TOTAL FUND BALANCES 341,991 1,373,620 1,715,611
TOTAL LIABILITIES AND
FUND BALANCES $ 341,991 $ 1,429,844 $ 1,771,835
-122-
CITY OF NEW HOPE, MINNESOTA
NONMAJOR CAPITAL PROJECTS FUNDS
SUBCOMBINING STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES
FOR THE YEAR ENDED DECEMBER 31, 2011
9010 9233
Fire Park
Capital Projects Infrastructure Total
REVENUES
Taxes
Property taxes
Charges for services
Investment earnings
Miscellaneous
TOTAL REVENUES
EXPENDITURES
Capital outlay
Culture and recreation
EXCESS (DEFICIENCY) OF REVENUES
OVER (UNDER) EXPENDITURES
OTHER FINANCING SOURCES (USES)
Transfers in
Transfers out
TOTAL OTHER FINANCING
SOURCES (USES)
NET CHANGE IN FUND BALANCES
FUND BALANCES, JANUARY 1
FUND BALANCES, DECEMBER 31
$ - $ 296,000 $ 296,000
22,745 22,745
37,977 37,977
1,900 1,900
358,622 358,622
-
499,247
499,247
-
(140,625)
(140,625)
341,991
24,972
366,963
-
(27,489)
(27,489)
341,991
(2,517)
339,474
341,991
(143,142)
198,849
-
1,516,762
1,516,762
$ 341,991
$ 1,373,620
$ 1,715,611
-123-
CITY OF NEW HOPE, MINNESOTA
GENERAL FUND
SCHEDULE OF REVENUES, EXPENDITURES AND
CHANGES IN FUND BALANCES - BUDGET AND ACTUAL - CONTINUED ON THE FOLLOWING PAGES
FOR THE YEAR ENDED DECEMBER 31, 2011
(With Comparative Actual Amounts For The Year Ended December 31, 2010)
Charges for services
General government
210,115
2011
298,415
88,300
2010
Public safety
Budgeted Amounts
Actual
Variance with
Actual
261,421
Original
Final
Amounts
Final Budget
Amounts
REVENUES
Culture and recreation
512,710
512,710
618,942
106,232
Taxes
Total charges for services
957,605
1,034,905
1,204,602
169,697
Property taxes
$ 7,077,171
$ 7,077,171 $
6,960,834
$ (116,337)
$ 7,044,686
Franchise taxes
458,000
458,000
439,795
(18,205)
430,494
Total taxes
7,535,171
7,535,171
7,400,629
(134,542)
7,475,180
Licenses and permits
Miscellaneous
20,500
28,643
30,885
2,242
Business regulatory licenses
49,980
52,560
55,752
3,192
60,471
Non - business licenses and permits
315,100
315,100
303,778
(11,322)
175,907
Total licenses and permits
365,080
367,660
359,530
(8,130)
236,378
Intergovernmental
Market value credits
344,434
9,182
1,280
(7,902)
1,021
Local government aid
-
41,842
41,843
1
41,843
Highway maintenance aid
145,000
145,000
162,707
17,707
145,746
Other federal, state, and local grants
80,686
80,686
131,126
50,440
173,635
State insurance premium tax
192,500
192,500
202,890
10,390
200,205
Total intergovernmental
762,620
469,210
539,846
70,636
562,450
Charges for services
General government
210,115
210,115
298,415
88,300
219,581
Public safety
216,580
217,280
180,903
(36,377)
261,421
Public works
18,200
94,800
106,342
11,542
92,025
Culture and recreation
512,710
512,710
618,942
106,232
554,167
Total charges for services
957,605
1,034,905
1,204,602
169,697
1,127,194
Fines and forfeitures
276,200
278,950
241,504
(37,446)
238,961
Special assessments
-
-
6,705
6,705
1,835
Investment earnings
48,900
48,900
88,821
39,921
43,369
Miscellaneous
20,500
28,643
30,885
2,242
16,626
TOTAL REVENUES
9,966,076
9,763,439
9,872,522
109,083
9,701,993
-124-
CITY OF NEW HOPE, MINNESOTA
GENERAL FUND
SCHEDULE OF REVENUES, EXPENDITURES AND
CHANGES IN FUND BALANCES - BUDGET AND ACTUAL - CONTINUED
FOR THE YEAR ENDED DECEMBER 31, 2011
(With Comparative Actual Amounts For The Year Ended December 31, 2010)
City hall
Personnel services - - - - 8,125
Supplies 20,500 20,500 15,666 4,834 18,197
Other services and charges 261,005 248,511 253,574 (5,063) 244,061
Total 281,505 269,011 269,240 (229) 270,383
City manager
Personnel services
291,510
2011
288,304
5,831
2010
Supplies
Budgeted Amounts
1,000
Actual
Variance with
Actual
Other services and charges
Original Final
Amounts
Final Budget
Amounts
EXPENDITURES
Total
314,806
316,691
311,119
5,572
Current
Elections
General government
Personnel services
-
-
-
-
Mayor and City Council
Supplies
-
-
-
-
Personnel services
$ 45,066 $
45,516 $
45,248
$ 268
$ 44,006
Supplies
2,250
1,750
2,106
(356)
1,418
Other services and charges
30,046
30,046
29,088
958
27,513
Total
77,362
77,312
76,442
870
72,937
Advisory
Supplies
500
500
1,243
(743)
Personnel services
-
-
-
-
103
City hall
Personnel services - - - - 8,125
Supplies 20,500 20,500 15,666 4,834 18,197
Other services and charges 261,005 248,511 253,574 (5,063) 244,061
Total 281,505 269,011 269,240 (229) 270,383
City manager
Personnel services
291,510
294,135
288,304
5,831
293,169
Supplies
1,000
1,000
1,811
(811)
1,620
Other services and charges
22,296
21,556
21,004
552
21,592
Total
314,806
316,691
311,119
5,572
316,381
Elections
Personnel services
-
-
-
-
33,439
Supplies
-
-
-
-
2
Other services and charges
4,450
4,450
4,203
247
5,464
Total
4,450
4,450
4,203
247
41,332
Finance
Personnel services
90,151
90,948
84,142
6,806
83,511
Supplies
500
500
1,243
(743)
1,819
Other services and charges
135,804
135,804
150,506
(14,702)
141,720
Total
226,455
227,252
235,891
(8,639)
227,050
Auditing
Other services and charges
30,000
30,000
28,360
1,640
28,975
-125-
CITY OF NEW HOPE, MINNESOTA
GENERAL FUND
SCHEDULE OF REVENUES, EXPENDITURES AND
CHANGES IN FUND BALANCES - BUDGET AND ACTUAL - CONTINUED
FOR THE YEAR ENDED DECEMBER 31, 2011
(With Comparative Actual Amounts For The Year Ended December 31, 2010)
2011 2010
Budgeted Amounts Actual Variance with Actual
Original Final Amounts Final Budget Amounts
EXPENDITURES - CONTINUED
Current - continued
General government - continued
Assessing
Other services and charges $ 106,000 $ 106,000 $ 102,523 $ 3,477 $ 103,449
Legal
96,043
96,873
92,031
4,842
90,313
Other services and charges
20,000
20,000
29,872
(9,872)
27,722
Human resources
45,980
43,980
56,779
(12,799)
68,076
Personnel services
186,505
188,177
192,022
(3,845)
179,532
Supplies
1,300
1,300
738
562
964
Other services and charges
21,998
21,998
35,116
(13,118)
26,387
Total
209,803
211,475
227,876
(16,401)
206,883
Planning and zoning
Personnel services
96,043
96,873
92,031
4,842
90,313
Supplies
500
500
250
250
153
Other services and charges
45,980
43,980
56,779
(12,799)
68,076
Total
142,523
141,353
149,060
(7,707)
158,542
Communication
Personnel services
84,451
85,199
81,655
3,544
85,474
Supplies
2,775
2,775
2,799
(24)
1,607
Other services and charges
45,995
42,995
39,813
3,182
40,342
Total
133,221
130,969
124,267
6,702
127,423
Other functions
Other services and charges
57,232
-
-
-
-
Total general government
1,603,357
1,534,513
1,558,853
(24,340)
1,581,180
Public safety
Police
Personnel services
3,679,313
3,602,157
3,468,203
133,954
3,425,621
Supplies
89,400
87,700
79,805
7,895
82,516
Other services and charges
757,013
757,013
770,346
(13,333)
726,353
Total
4,525,726
4,446,870
4,318,354
128,516
4,234,490
Police reserves
Personnel services
16,528
16,678
8,936
7,742
5,660
Supplies
4,575
4,575
2,679
1,896
7,913
Other services and charges
15,964
15,964
14,198
1,766
13,849
Total
37,067
37,217
25,813
11,404
27,422
-126-
CITY OF NEW HOPE, MINNESOTA
GENERAL FUND
SCHEDULE OF REVENUES, EXPENDITURES AND
CHANGES IN FUND BALANCES - BUDGET AND ACTUAL - CONTINUED
FOR THE YEAR ENDED DECEMBER 31, 2011
(With Comparative Actual Amounts For The Year Ended December 31, 2010)
2011
2010
Budgeted Amounts
Actual
Variance with
Actual
Original
Final
Amounts
Final Budget
Amounts
EXPENDITURES - CONTINUED
Current - continued
Public safety - continued
Fire and safety
Personnel services
$ -
$ - $
-
$ -
$ 1,716
Supplies
1,000
1,000
626
374
534
Other services and charges
998,267
1,046,650
1,045,157
1,493
990,026
Total
999,267
1,047,650
1,045,783
1,867
992,276
Animal control
Personnel services
85,923
86,684
84,165
2,519
79,755
Supplies
1,020
1,020
-
1,020
832
Other services and charges
27,109
27,109
29,956
(2,847)
27,018
Total
114,052
114,813
114,121
692
107,605
Protective inspection
Personnel services
339,938
342,916
341,513
1,403
340,570
Supplies
1,650
1,650
1,735
(85)
1,537
Other services and charges
85,730
83,730
83,286
444
79,254
Total
427,318
428,296
426,534
1,762
421,361
Total public safety
6,103,430
6,074,846
5,930,605
144,241
5,783,154
Public works
Street maintenance
Personnel services
475,943
480,139
430,457
49,682
456,499
Supplies
76,363
76,363
86,694
(10,331)
89,732
Other services and charges
296,434
291,965
283,175
8,790
428,981
Total
848,740
848,467
800,326
48,141
975,212
Engineering
Other services and charges
15,000
15,000
11,710
3,290
14,522
Total public works
863,740
863,467
812,036
51,431
989,734
Culture and recreation
Recreation
Personnel services
500,820
481,759
481,429
330
523,049
Supplies
57,730
57,730
81,650
(23,920)
61,261
Other services and charges
163,397
163,397
178,756
(15,359)
149,616
Total
721,947
702,886
741,835
(38,949)
733,926
Parks
Personnel services
504,465
477,187
431,787
45,400
427,408
Supplies
37,805
37,805
27,353
10,452
26,517
Other services and charges
200,983
200,583
195,984
4,599
240,321
Total
743,253
715,575
655,124
60,451
694,246
-127-
THIS PAGE IS LEFT BLANK
INTENTIONALLY
-128-
CITY OF NEW HOPE, MINNESOTA
GENERAL FUND
SCHEDULE OF REVENUES, EXPENDITURES AND
CHANGES IN FUND BALANCES - BUDGET AND ACTUAL - CONTINUED
FOR THE YEAR ENDED DECEMBER 31, 2011
(With Comparative Actual Amounts For The Year Ended December 31, 2010)
EXPENDITURES - CONTINUED
Current - continued
Culture and recreation - continued
Swimming pool
Personnel services
Supplies
Other services and charges
Total
Total culture and recreation
Total current expenditures
Capital outlay
General government
Public safety
Culture and recreation
Total capital outlay
TOTAL EXPENDITURES
EXCESS (DEFICIENCY) OF REVENUES
OVER (UNDER) EXPENDITURES
OTHER FINANCING SOURCES
Transfers in
Sale of capital assets
TOTAL OTHER FINANCING
SOURCES
NET CHANGE IN FUND BALANCES
FUND BALANCES, JANUARY 1
FUND BALANCES, DECEMBER 31
2011 2010
Budgeted Amounts Actual Variance with Actual
Original Final Amounts Final Budget Amounts
$ 100,873
$ 99,829 $
86,431 $
13,398
$ 95,589
38,030
38,030
35,552
2,478
35,882
39,974
39,974
37,306
2,668
34,512
178,877
177,833
159,289
18,544
165,983
1,644,077
1,596,294
1,556,248
40,046
1,594,155
10,214,604
10,069,120
9,857,742
211,378
9,948,223
34,123
29,123
-
29,123
519
79,500
7,500
12,392
(4,892)
-
3,500
3,500
-
3,500
1,779
117,123
40,123
12,392
27,731
2,298
10,331,727
10,109,243
9,870,134
239,109
9,950,521
(365,651)
(345,804)
2,388
348,192
(248,528)
365,651
345,804
341,224
(4,580) 483,823
- 1,954
365,651 345,804 341,224 (4,580) 485,777
- - 343,612 343,612 237,249
4,591,600 4,591,600 4,591,600 - 4,354,351
$ 4,591,600 $ 4,591,600 $ 4,935,212 $ 343,612 $ 4,591,600
-129-
THIS PAGE IS LEFT BLANK
INTENTIONALLY
-130-
CITY OF NEW HOPE, MINNESOTA
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 department 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.
-131-
CITY OF NEW HOPE, MINNESOTA
INTERNAL SERVICE FUNDS
COMBINING STATEMENTS OF NET ASSETS (LIABILITIES)
DECEMBER 31, 2011 AND 2010
ASSETS
CURRENT ASSETS
Cash and temporary investments
Inventory
TOTAL CURRENT ASSETS
NONCURRENT ASSETS
Capital assets
Land
Buildings and structures
Vehicles and equipment
Less: accumulated depreciation
Total capital assets
(net of accumulated depreciation)
TOTAL ASSETS
LIABILITIES
CURRENT LIABILITIES
Accrued salaries payable
Accounts and contracts payable
Due to other governments
Compensated absences payable, current portion
TOTAL CURRENT LIABILITIES
NONCURRENT LIABILITIES
Other postemployment benefits payable
TOTAL LIABILITIES
NET ASSETS (LIABILITIES)
Invested in capital assets
Unrestricted
TOTAL NET ASSETS (LIABILITIES)
9402 9408
Central Garage Employee Leave
$ 6,033,520 $ 6,498,261 $ 491,713 $ 507,077
28,918 49,894 - -
6,062,438 6,548,155 491,713 507,077
85,647
3,032,156
6,618,220
(6,485,819)
3,250,204
9,312,642
85,647 - -
3,032,156 - -
6,339,374 - -
(6,198,244) - -
3,258,933 - -
9,807,088 491,713 507,077
13,362 11,155 34,920 76,847
113,605 131,467 - -
- - 470,152 463,580
126,967 142,622 505,072 540,427
126,967 142,622 505,072 540,427
3,250,204 3,258,933 - -
5,935,471 6,405,533 (13,359) (33,350)
$ 9,185,675 $ 9,664,466 $ (13,359) $ (33,350)
-132-
9407
Insurance Reserve
2011
2010
9410
Information Technology
2011 2010
Totals
2011 2010
$ 461,352 $ 451,219 $ 175,565 $ 213,316 $ 7,162,150 $ 7,669,873
- - - - 28,918 49,894
461,352 451,219 175,565 213,316 7,191,068 7,719,767
- - -
-
85,647
85,647
- - -
-
3,032,156
3,032,156
- - 218,144
218,144
6,836,364
6,557,518
- - (133,605)
(112,388)
(6,619,424)
(6,310,632)
19,183
- - 84,539
105,756
3,334,743
3,364,689
461,352 451,219 260,104
319,072
10,525,811
11,084,456
-
-
3,250
2,956
51,532
90,958
221
2,542
11,298
2,888
125,124
136,897
-
-
19,183
48,616
19,183
48,616
-
-
-
-
470,152
463,580
221
2,542
33,731
54,460
665,991
740,051
70,882
38,819
-
-
70,882
38,819
71,103
41,361
33,731
54,460
736,873
778,870
-
-
84,539
105,756
3,334,743
3,364,689
390,249
409,858
141,834
158,856
6,454,195
6,940,897
$ 390,249 $
409,858 $
226,373 $
264,612
$ 9,788,938
$ 10,305,586
-133-
CITY OF NEW HOPE, MINNESOTA
INTERNAL SERVICE FUNDS
COMBINING STATEMENTS OF REVENUES, EXPENSES AND
CHANGES IN FUND NET ASSETS (LIABILITIES)
FOR THE YEARS ENDED DECEMBER 31, 2011 AND 2010
OPERATING REVENUES
Billings to departments
Other
TOTAL OPERATING REVENUES
OPERATING EXPENSES
Personnel services
Supplies
Utilities
Other services and charges
Depreciation
TOTAL OPERATING EXPENSES
OPERATING INCOME (LOSS)
NONOPERATING REVENUES (EXPENSES)
Investment earnings
Gain on sale of capital assets
TOTAL NONOPERATING
REVENUES (EXPENSES)
INCOME (LOSS) BEFORE TRANSFERS
TRANSFERS OUT
MORAL NNONW.1=4UN
NET ASSETS (LIABILITIES), JANUARY 1
NET ASSETS (LIABILITIES), DECEMBER 31
9402
9408
Central Garage
Employee Leave
2011
2010
2011
2010
$ 1,017,060
$ 1,074,455
$ 466,263
$ 505,198
1,017,060
1,074,455
466,263
505,198
361,667
365,704
458,909
491,539
358,798
322,663
-
-
49,694
44,401
-
-
380,253
260,700
-
-
501,935
478,670
-
-
1,652,347
1,472,138
458,909
491,539
(635,287)
(397,683)
7,354
13,659
167,756
30,978
12,637
7,361
13,568
20,976
-
-
181,324
51,954
12,637
7,361
(453,963)
(345,729)
19,991
21,020
(24,828)
(20,964)
-
-
(478,791)
(366,693)
19,991
21,020
9,664,466
10,031,159
(33,350)
(54,370)
$ 9,185,675
$ 9,664,466
$ (13,359)
$ (33,350)
-134-
9407
Insurance Reserve
2011 2010
9410
Information Technology
2011 2010
Totals
2011 2010
$ 49,745 $
41,096 $
574,716 $
239,046
$ 2,107,784
$ 1,859,795
17,116
44,513
-
-
17,116
44,513
66,861
85,609
574,716
239,046
2,124,900
1,904,308
32,063
11,740
107,853
109,417
960,492
978,400
-
-
37,715
36,522
396,513
359,185
-
-
34,889
41,296
84,583
85,697
66,827
98,803
368,472
83,783
815,552
443,286
-
-
21,217
22,414
523,152
501,084
98,890
110,543
570,146
293,432
2,780,292
2,367,652
(32,029) (24,934) 4,570 (54,386) (655,392) (463,344)
12,420
6,407
4,123
3,366
196,936
48,112
-
-
-
-
13,568
20,976
12,420
6,407
4,123
3,366
210,504
69,088
(19,609)
(18,527)
8,693
(51,020)
(444,888)
(394,256)
-
-
(46,932)
(39,636)
(71,760)
(60,600)
(19,609)
(18,527)
(38,239)
(90,656)
(516,648)
(454,856)
409,858
428,385
264,612
355,268
10,305,586
10,760,442
$ 390,249 $
409,858 $
226,373 $
264,612
$ 9,788,938
$ 10,305,586
-135-
CITY OF NEW HOPE, MINNESOTA
INTERNAL SERVICE FUNDS
COMBINING STATEMENTS OF CASH FLOWS
FOR THE YEARS ENDED DECEMBER 31, 2011 AND 2010
CASH FLOWS FROM OPERATING ACTIVITIES
Receipts from interfund services provided
Payments to suppliers
Payments to employees
NET CASH PROVIDED (USED)
BY OPERATING ACTIVITIES
CASH FLOWS FROM NONCAPITAL
FINANCING ACTIVITIES
Transfers out
CASH FLOWS FROM CAPITAL
AND RELATED FINANCING ACTIVITIES
Acquisition and construction of capital assets
Proceeds from sale of assets
NET CASH USED BY CAPITAL
AND RELATED FINANCING ACTIVITIES
CASH FLOWS FROM INVESTING ACTIVITIES
Interest received from investments
NET INCREASE (DECREASE)
IN CASH AND CASH EQUIVALENTS
CASH AND CASH EQUIVALENTS, JANUARY 1
CASH AND CASH EQUIVALENTS, DECEMBER 31
RECONCILIATION OF OPERATING INCOME (LOSS)
TO NET CASH PROVIDED (USED)
BY OPERATING ACTIVITIES
Operating income (loss)
Adjustments to reconcile operating income (loss)
to net cash provided (used) by operating activities
Depreciation
(Increase) decrease in assets
Accounts receivable
Due from other governments
Inventory
Increase (decrease) in liabilities
Accounts and contracts payable
Accrued salaries payable
Due to other governments
Compensated absences payable
Other postemployment benefits payable
NET CASH PROVIDED (USED)
BY OPERATING ACTIVITIES
SCHEDULE OF NONCASH CAPITAL AND
RELATED FINANCING ACTIVITIES
Capital assets purchased on account
9402 9408
Central Garage Employee Leave
$ 1,017,060 $ 1,074,765 $ 466,263 $ 505,198
(767,903) (622,508) - -
(359,460) (365,214) (494,264) (546,540)
(110,303) 87,043 (28,001) (41,342)
(24,828) (20,964) -
(510,934) (828,240) - -
13,568 20,976 - -
(497,366) (807,264) - -
167,756
30,979
12,637
7,361
(464,741)
(710,206)
(15,364)
(33,981)
6,498,261
7,208,467
507,077
541,058
$ 6,033,520
$ 6,498,261 $
491,713 $
507,077
$ (635,287) $ (397,683) $ 7,354 $ 13,659
501,935 478,670 - -
- 310 - -
20,976 811 - -
(134) 4,445 - -
2,207 490 (41,927) 8,370
- - 6,572 (36,292)
- - - (27,079)
$ (110,303) $ 87,043 $ (28,001) $ (41,342)
$ 69,180 $ 86,908 $ $
-136-
9407
Insurance Reserve
2011 2010
9410
Information Technology
2011 2010
Totals
2011 2010
$ 66,861 $ 116,302 $ 574,716 $ 260,876 $ 2,124,900 $ 1,957,141
(69,148) (141,855) (462,099) (201,533) (1,299,150) (965,896)
- - (107,559) (109,323) (961,283) (1,021,077)
(2,287) (25,553) 5,058 (49,980) (135,533) (29,832)
- (46,932) (39,636) (71,760) (60,600)
- - - (510,934) (828,240)
- - - 13,568 20,976
- - - (497,366) (807,264)
12,420
6,407
4,123
3,366
196,936
48,113
10,133
(19,146)
(37,751)
(86,250)
(507,723)
(849,583)
451,219
470,365
213,316
299,566
7,669,873
8,519,456
$ 461,352 $
451,219 $
175,565 $
213,316
$ 7,162,150
$ 7,669,873
$ (32,029) $ (24,934) $
4,570 $
(54,386) $
(655,392) $
(463,344)
- -
21,217
22,414
523,152
501,084
- 30,693
-
19,158
-
50,161
- -
-
2,672
-
2,672
- -
-
-
20,976
811
(2,321) (70,131)
8,410
(88,548)
5,955
(154,234)
- -
294
94
(39,426)
8,954
- -
(29,433)
48,616
(29,433)
48,616
- -
-
-
6,572
(36,292)
32,063 38,819
-
-
32,063
11,740
$ (2,287) $ (25,553) $ 5,058 $ (49,980) $ (135,533) $ (29,832)
$ $ $ $ $ 69,180 $ 86,908
-137-
CITY OF NEW HOPE, MINNESOTA
AGENCY FUND
STATEMENT OF CHANGES IN ASSETS AND LIABILITIES
FOR THE YEAR ENDED DECEMBER 31, 2011
Balance
January 1 Additions
PASS - THROUGH GRANT FUND
ASSETS
Cash and temporary investments
LIABILITIES
Deposits payable
Balance
Deductions December 31
$ 51,385 $ 228,902 $ (234,593) $ 45,694
$ 51,385 $ 228,902 $ (234,593) $ 45,694
-138-
SUPPLEMENTARY INFORMATION
(UNAUDITED)
CITY OF NEW HOPE
NEW HOPE, MINNESOTA
FOR THE YEAR ENDED
DECEMBER 31, 2011
-139-
CITY OF NEW HOPE, MINNESOTA
SUMMARY FINANCIAL REPORT
REVENUES AND EXPENDITURES FOR GENERAL OPERATIONS
GOVERNMENTAL FUNDS
FOR THE YEARS ENDED DECEMBER 31, 2011 AND 2010
REVENUES
Taxes
Property taxes
Tax increments
Franchise taxes
Licenses and permits
Intergovernmental
Charges for services
Fines and forfeitures
Special assessments
Investment earnings
Miscellaneous
TOTAL REVENUES
Per capita
EXPENDITURES
Current
General government
Public safety
Public works
Culture and recreation
Economic development
Capital outlay
Debt service
Principal
Interest
Bond issuance costs
TOTAL EXPENDITURES
Per capita
Total Long -term indebtedness
Per capita
General Fund Balance - December 31
Per capita
$
1,560,511
Percent
Total
(17.16) %
Increase
2011
2010
(Decrease)
2.45
$ 8,767,959 $
8,694,245
0.85 %
1,400,163
1,408,256
(0.57)
439,795
430,494
2.16
359,530
236,378
52.10
1,599,253
1,765,220
(9.40)
1,544,369
1,369,904
12.74
255,329
238,961
6.85
153,835
258,392
(40.46)
548,548
393,913
39.26
115,183
87,607
31.48
$ 15,183,964 $
14,883,370
2.02 %
$ 747 $
732
18,956,303
$
1,560,511
$
1,883,729
(17.16) %
5,933,201
5,791,511
2.45
1,079,884
989,734
9.11
1,560,486
1,599,381
(2.43)
289,650
192,431
50.52
7,185,778
2,605,724
175.77
1,005,000
515,000
95.15
247,973
273,054
(9.19)
93,820
-
100.00
$
18,956,303
$
13,850,564
36.86 %
$
932
$
681
36.86 %
$
9,160,000
$
6,660,000
37.54 %
450
327
37.54
$
4,935,212
$
4,591,600
7.48 %
243
226
7.48
The purpose of this report is to provide a summary of financial information concerning the City of New Hope to
interested citizens. The complete financial statements may be examined at City Hall, 4401 Xylon Avenue North, New Hope,
Minnesota 55428. Questions about this report should be directed to Kirk McDonald, City Manager at (763) 531 -5112.
-140-
STATISTICAL SECTION
(UNAUDITED)
CITY OF NEW HOPE
NEW HOPE, MINNESOTA
FOR THE YEAR ENDED
DECEMBER 31, 2011
-141-
THIS PAGE IS LEFT BLANK
INTENTIONALLY
-142-
STATISTICAL SECTION
(Unaudited)
This part of the City of New Hope's comprehensive annual financial report presents detailed information as a context for
understanding what the information in the financial statements, note disclosures, and required supplementary information says about
the government's overall financial health.
Financial Trends
These schedules contain trend information to help the reader understand how the City s financial performance and well -being
have changed over time.
Revenue Capacity
These schedules contain information to help the reader assessthe City's most significant local revenue source; property taxes.
Debt Capacity
These schedules present information to help the reader assess the affordability of the government's current levels of out - standing
debt and the government's ability to issue additional debt in the future.
Demographic and Economic Information
These schedules offer demographic and economic indicators to help the reader understand the environment within which the
City's financial activities take place.
Operating Information
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 government provides and the activities it performs.
Sources: Unless otherwise noted, the information in these schedules is derived from the comprehensive annual financial reports for
the relevant year.
-143-
CITY OF NEW HOPE, MINNESOTA
STATISTICAL SECTION (UNAUDITED)
NET ASSETS BY COMPONENT
LAST NINE FISCAL YEARS
(accrual basis of accounting)
Fiscal Year
Governmental activities
Invested in capital assets, net of related debt
Restricted
Unrestricted
Total governmental activities net assets
Business -type activities
Invested in capital assets, net of related debt
Unrestricted
Total business -type activities net assets
Total primary government
Invested in capital assets, net of related debt
Restricted
Unrestricted
Total primary government
2003 2004 2005 2006
$
14,997,083
$
10,248,795
$
11,770,767
$
13,366,539
6,824,715
15,756,949
18,186,452
17,056,531
12,169,857
4,106,700
4,677,467
6,049,538
$
33,991,655
$
30,112,444
$
34,634,686
$
36,472,608
$
5,782,234
$
6,935,624
$
7,277,094
$
7,817,568
2,002,848
1,565,366
1,704,470
1,379,488
$
7,785,082
$
8,500,990
$
8,981,564
$
9,197,056
$
20,779,317
$
17,184,419
$
19,047,861
$
21,184,107
6,824,715
15,756,949
18,186,452
17,056,531
14,172,705
5,672,066
6,381,937
7,429,026
$
41,776,737
$
38,613,434
$
43,616,250
$
45,669,664
Note: The City implemented GASB Statement No. 34 in fiscal 2003. Net asset information is not available for previous fiscal years.
-144-
Fiscal Year
2007 2008 2009 2010 2011
$
14,572,777
$
16,099,860
$
16,411,454
$
16,495,175
$
20,399,936
18,030,936
17,857,296
19,454,696
9,279,142
6,018,734
7,399,637
8,643,991
9,151,912
21,971,477
22,544,601
$
40,003,350
$
42,601,147
$
45,018,062
$
47,745,794
$
48,963,271
$
8,018,286
$
9,008,538
$
9,395,068
$
9,989,405
$
11,342,873
1,625,562
1,423,111
1,650,590
2,541,156
3,505,651
$
9,643,848
$
10,431,649
$
11,045,658
$
12,530,561
$
14,848,524
$
22,591,063
$
25,108,398
$
25,806,522
$
26,484,580
$
31,742,809
18,030,936
17,857,296
19,454,696
9,279,142
6,018,734
9,025,199
10,067,102
10,802,502
24,512,633
26,050,252
$
49,647,198
$
53,032,796
$
56,063,720
$
60,276,355
$
63,811,795
-145-
CITY OF NEW HOPE, MINNESOTA
STATISTICAL SECTION (UNAUDITED)
CHANGES IN NET ASSETS - CONTINUED ON THE FOLLOWING PAGES
LAST NINE FISCAL YEARS
(accrual basis of accounting)
Expenses
Governmental activities
General government
Public safety
Public works
Culture and recreation
Economic development
Interest on long -term debt
Total governmental activities expenses
Business -type activities
Sewer
Water
Golf course
Ice arena
Storm water
Street lighting
Total business -type activities expenses
Total expenses
Program revenues
Governmental activities
Charges for services
General government
Public safety
Public works
Culture and recreation
Economic development
Operating grants and contributions
Capital grants and contributions
Total governmental activities program revenues
Business -type activities
Charges for services
Water
Sewer
Golf course
Ice arena
Storm water
Street lighting
Operating grants and contributions
Capital grants and contributions
Fiscal Year
2003 2004 2005 2006
$ 3,493,849
$ 9,987,297
$ 3,253,971
$ 3,683,505
4,723,393
4,697,791
4,650,531
4,739,744
713,980
1,065,869
1,346,334
1,514,119
1,220,059
1,603,052
1,701,120
1,897,571
388,686
296,934
582,402
395,308
10, 53 9,967
17,650,943
11,534,358
12,230,247
3,607,937
2,847,451
2,612,771
2,100,070
4,860,434
4,253,600
4,083,803
4,680,584
407,835
428,575
457,175
420,223
705,705
757,160
677,911
724,020
346,103
395,156
689,622
607,298
94,121
98,786
109,960
106,052
6,414,198
5,933,277
6,018,471
6,538,177
$ 16,954,165
$ 23,584,220
$ 17,552,829
$ 18,768,424
$ 1,364,091
$ 1,484,651
$ 1,183,365
$ 1,084,659
262,245
163,419
124,235
142,197
-
-
-
4,843
427,069
423,831
476,484
452,889
810,372
289,368
331,591
263,548
744,160
486,182
497,096
151,934
3,607,937
2,847,451
2,612,771
2,100,070
4,753,974
4,473,274
4,284,906
4,491,025
357,861
341,707
337,730
345,828
596,642
658,786
591,555
622,428
594,985
823,123
856,761
881,682
110,535
111,237
111,551
115,162
20,600
273
16,968
108,371
-
173,176
55,391
138,886
Total business -type activities program revenues 6,434,597 6,581,576 6,254,862 6,703,382
Total program revenues $ 10,042,534 $ 9,429,027 $ 8,867,633 $ 8,803,452
-146-
Fiscal Year
2007 2008 2009 2010 2011
$ 3,547,855
$ 2,492,386
$ 2,244,977
$ 2,552,425
$ 1,841,145
5,291,323
5,988,010
6,218,996
5,864,775
6,129,860
650,686
1,381,386
1,291,983
1,625,959
1,795,189
1,868,403
1,967,129
2,053,788
1,899,105
1,882,279
-
-
-
192,431
536,433
369,508
340,081
275,532
252,224
248,174
11,727,775
12,168,992
12,085,276
12,386,919
12,433,080
2,732,148
2,347,381
2,414,360
4,014,022
3,946,501
-
-
-
1,928,845
2,070,951
4,955,642
4,915,929
5,265,147
2,915,757
3,535,160
440,666
383,521
369,579
346,345
322,679
723,264
780,816
694,039
712,153
746,218
387,889
361,542
393,118
430,899
490,336
126,966
121,912
12 6, 983
104,099
113,753
6,634,427
6,563,720
6,848,866
6,438,098
7,279,097
$ 18,362,202
$ 18,732,712
$ 18,934,142
$ 18,825,017
$ 19,712,177
$ 1,314,007
$ 1,164,394
$ 1,048,549
$ 984,855
$ 220,629
251,622
151,180
134,680
218,732
877,159
-
-
-
-
219,353
503,648
579,694
527,079
562,383
637,077
-
-
-
104,713
98,139
270,403
388,166
586,508
1,356,292
783,382
392,468
63,947
117,544
787,047
1,110,762
2,732,148
2,347,381
2,414,360
4,014,022
3,946,501
4,870,737
5,175,878
5,141,131
3,082,771
3,169,859
-
-
-
2,292,300
2,352,635
337,712
330,782
345,550
313,941
278,788
610,145
659,377
723,975
741,266
752,671
922,850
951,699
933,828
943,883
947,031
116,940
133,634
149,339
121,647
122,742
152,038
16,250
66,609
470,183
24,031
21,381
16,353
75,209
30,739
111,106
7,031,803
7,283,973
7,435,641
7,996,730
7,758,863
$ 9,763,951
$ 9,631,354
$ 9,850,001
$ 12,010,752
$ 11,705,364
-147-
CITY OF NEW HOPE, MINNESOTA
STATISTICAL SECTION (UNAUDITED)
CHANGES IN NET ASSETS - CONTINUED
LAST NINE FISCAL YEARS
(accrual basis of accounting)
Net revenues (expenses)
Governmental activities
Business -type activities
Fiscal Year
2003 2004 2005 2006
$ (6,932,030) $ (14,803,492) $ (8,921,587) $ (10,130,177)
20,399 648,299 236,391 165,205
Total primary government revenues (expenses) $ (6,911,631) $ (14,155,193) $ (8,685,196) $ (9,964,972)
General Revenues and Other Changes in Net Assets
General Revenues
Governmental activities
Taxes
Property taxes
Tax increments
Franchise taxes
Grants and contributions not
restricted to specific programs
Unrestricted investment earnings
Gain on sale of capital assets
Miscellaneous
Transfers
Total governmental activities general revenues
Business -type activities
Grants and contributions not
restricted to specific programs
Unrestricted investment earnings
Transfers
Total business -type activities general revenues
Total primary government
Change in Net Assets
Governmental activities
Business -type activities
Total primary government
$ 8,200,286
$ 7,312,104
$ 7,047,478
$ 7,097,895
-
1,131,601
991,476
1,195,726
-
428,266
435,875
433,806
1,071,453
1,178,413
2,098,594
1,497,688
341,173
521,643
607,253
1,155,967
354,756
380,254
886,549
599,337
-
(28,000)
(23,396)
(12,320)
9,967,668
10,924,281
12,043,829
11,968,099
- - 197,458 5,089
45,560 39,609 23,329 32,878
- 28,000 23,396 12,320
45,560 67,609 244,183 50,287
$ 10,013,228 $ 10,991,890 $ 12,288,012 $ 12,018,386
$ 3,035,638 $ (3,879,211) $ 3,122,242 $ 1,837,922
65,959 715,908 480,574 215,492
$ 3,101,597 $ (3,163,303) $ 3,602,816 $ 2,053,414
Note: The City implemented GASB Statement No. 34 in fiscal 2003. Changes in net asset information is not available for previous fiscal
years.
-148-
Fiscal Year
2007
2,008
2009
2010
2011
$ (8,995,627)
$ (9,821,611)
$ (9,670,916)
$ (8,372,897)
$ (8,486,579)
397,376
720,253
586,775
1,558,632
479,766
$ (8,598,251)
$ (9,101,358)
$ (9,084,141)
$ (6,814,265)
$ (8,006,813)
$ 7,756,543
$ 8,416,466
$ 8,760,482
$ 8,730,979
$ 8,784,948
1,673,394
1,835,749
1,262,598
1,408,256
1,400,163
444,898
441,133
438,744
430,494
439,795
600,221
666,543
755,762
79,529
87,206
1,698,749
992,673
723,565
337,312
745,484
-
-
-
22,930
13,568
352,564
96,911
146,680
-
-
-
(30,067)
-
91,129
(1,767,108)
12,526,369
12,419,408
12,087,831
11,100,629
9,704,056
49,416
37,481
27,234
17,400
71,089
-
30,067
-
(91,129)
1,767,108
49,416
67,548
27,234
(73,729)
1,838,197
$ 12,575,785
$ 12,486,956
$ 12,115,065
$ 11,026,900
$ 11,542,253
$ 3,530,742
$ 2,597,797
$ 2,416,915
$ 2,727,732
$ 1,217,477
446,792
787,801
614,009
1,484,903
2,317,963
$ 3,977,534
$ 3,385,598
$ 3,030,924
$ 4,212,635
$ 3,535,440
-149-
THIS PAGE IS LEFT BLANK
INTENTIONALLY
-150-
CITY OF NEW HOPE, MINNESOTA
STATISTICAL SECTION (UNAUDITED)
GOVERNMENTAL ACTIVITIES TAX REVENUES BY SOURCE
LAST NINE FISCAL YEARS
(accrual basis of accounting)
Fiscal
Property
Tax
Franchise
Year
tax
increments
tax
Total
2003
$ 7,029,236
$ 1,171,050
$ -
$ 8,200,286
2004
7,312,104
1,131,601
428,266
8,871,971
2005
7,047,478
991,476
435,875
8,474,829
2006
7,097,895
1,195,726
433,806
8,727,427
2007
7,756,543
1,673,394
444,898
9,874,835
2008
8,416,466
1,835,749
441,133
10,693,348
2009
8,760,482
1,262,598
438,744
10,461,824
2010
8,730,979
1,408,256
430,494
10,569,729
2011
8,784,948
1,400,163
439,795
10,624,906
Note: The City implemented GASB Statement No. 34 in fiscal 2003. Tax
revenue source information is not available
for previous
fiscal years.
-151-
CITY OF NEW HOPE, MINNESOTA
STATISTICAL SECTION (UNAUDITED)
FUND BALANCES OF GOVERNMENTAL FUNDS
LAST TEN FISCAL YEARS
(modified accrual basis of accounting)
Fiscal Year
2002 2003 2004 2005
General fund
Reserved
$
-
$
-
$
-
$
-
Unreserved
3,694,404
3,617,468
3,939,420
3,975,418
Nonspendable
-
-
-
-
Unassigned
-
-
-
-
Total general fund
$
3,694,404
$
3,617,468
$
3,939,420
$
3,975,418
All other governmental funds
Reserved
$
9,438,987
$
-
$
-
$
-
Unreserved, reported in
Special Revenue funds
1,145,287
1,398,320
2,247,767
3,844,116
Debt Service funds
-
8,437,888
7,886,432
6,383,506
Capital Project funds
3,123,980
4,440,084
4,040,937
6,877,231
Restricted
-
-
-
-
Committed
-
-
-
-
Assigned
-
-
-
-
Total all other governmental funds
$
13,708,254
$
14,276,292
$
14,175,136
$
17,104,853
Total all governmental funds
$
17,402,658
$
17,893,760
$
18,114,556
$
21,080,271
Note: The City implemented GASB 54 in fiscal year 2011, resulting in significant reclassification of the components of fund
balance. Years prior to 2011 have not been restated.
-152-
Fiscal Year
2006 2007 2008 2009 2010 2011
$
-
$
-
$
-
$
-
$
63,753
$
-
4,227,954
4,249,604
3,952,477
4,354,351
4,527,847
-
-
-
-
-
-
14,366
-
-
-
-
-
4,920,846
$
4,227,954
$
4,249,604
$
3,952,477
$
4,354,351
$
4,591,600
$
4,935,212
$
-
$
-
$
2,433,162
$
4,699,636
$
9,043,337
$
-
4,385,348
4,748,023
2,993,986
3,266,399
3,129,062
-
6,294,149
5,992,108
6,571,884
6,450,295
-
-
5,458,640
6,569,745
5,962,599
5,317,588
9,771,932
-
-
-
-
-
-
7,559,164
-
-
-
-
-
4,666,447
-
-
-
-
-
7,412,421
$
16,138,137
$
17,309,876
$
17,961,631
$
19,733,918
$
21,944,331
$
19,638,032
$
20,366,091
$
21,559,480
$
21,914,108
$
24,088,269
$
26,535,931
$
24,573,244
-153-
CITY OF NEW HOPE, MINNESOTA
STATISTICAL SECTION (UNAUDITED)
CHANGES IN FUND BALANCES OF GOVERNMENTAL FUNDS
LAST TEN FISCAL YEARS
(modified accrual basis of accounting)
-154-
Fiscal Year
2002
2003
2004
2005
Revenues
Property taxes
$ 8,219,656
$ 8,165,829 $
8,429,780
$ 8,069,691
Tax increments
-
-
-
-
Franchise taxes
-
-
428,265
435,875
Licenses and permits
311,494
366,327
500,141
398,843
Intergovernmental
3,755,153
2,036,314
1,605,507
2,415,857
Charges for services
1,414,779
1,179,690
1,224,439
1,008,883
Fines and forfeitures
293,391
297,428
268,358
240,273
Special assessments
487,991
587,753
497,664
417,697
Investment earnings
-
-
-
-
Miscellaneous
1,081,984
624,467
836,520
837,789
Total revenues
15,564,448
13,257,808
13,790,674
13,824,908
Expenditures
General government
2,015,233
2,358,512
2,102,852
1,857,955
Public safety
4,604,030
4,499,649
4,403,147
4,594,910
Public works
950,728
737,355
834,167
960,101
Culture and recreation
1,410,356
1,350,500
1,388,814
1,515,255
Economic development
-
-
-
-
Miscellaneous
42,021
-
-
-
Capital Outlay
5,627,892
1,342,454
7,898,496
2,342,117
Debt service
Principal
2,905,000
2,435,000
1,385,000
1,650,000
Interest
627,891
454,481
431,621
480,746
Bond issuance costs
-
-
-
-
Total expenditures
18,183,151
13,177, 951
18,444, 097
13 ,401, 084
Excess (deficiency) of revenues
over (under) expenditures
(2,618,703)
79,857
(4,653,423)
423,824
Other financing sources (uses)
Transfers in
4,264,787
1,029,098
1,322,034
-
Sales of capital assets
181,651
504,650
822,219
85,757
Bonds issued
785,000
-
4,080,000
1,370,000
Premium on bonds issued
-
-
-
-
Ref ending bonds issued
-
-
-
1,455,000
Bonds refunded
-
-
-
(1,425,000)
Transfers out
(3,283,307)
(1,155,673)
(1,350,034)
(23,396)
Total other financing
sources (uses)
1,948,131
378,075
4,874,219
1,462,361
Net change in fund balances
$ (670,572)
$ 457,932 $
220,796
$ 1,886,185
Debt service as a percentage of
Noncapital expenditures
21.4%
23.4%
11.1%
17.1%
-154-
Fiscal Year
2006 2007 2008 2009 2010 2011
$ 8,330,410
$ 9,386,469
$ 9,910,002
$ 9,898,968
$ 8,694,245
$ 8,767,959
-
-
-
-
1,408,256
1,400,163
433,806
444,898
441,133
438,744
430,494
439,795
289,534
332,351
415,012
226,303
236,378
359,530
1,731,191
970,543
1,038,461
1,401,010
1,765,220
1,599,253
1,036,710
1,149,810
1,125,819
1,166,302
1,369,904
1,544,369
266,750
247,794
285,255
236,173
238,961
255,329
310,708
326,909
203,199
157,581
258,392
153,835
-
-
-
-
393,913
548,548
1,031,207
1,747,196
906,365
791,039
87,607
115,183
13,430,316
14,605,970
14,325,246
14,316,120
14,883,370
15,183,964
1,771,012
1,959,594
1,949,002
1,726,566
1,883,729
1,560,511
4,739,323
5,281,122
5,880,729
5,933,364
5,791,511
5,933,201
825,199
883,268
830,900
740,014
989,734
1,079,884
1,607,849
1,638,354
1,687,171
1,698,807
1,599,381
1,560,486
-
-
-
-
192,431
289,650
4,326,095
1,769,589
2,444,825
1,137,776
2,605,724
7,185,778
940,000
1,525,000
820,000
885,000
515,000
1,005,000
432,698
357,654
357,991
273,100
273,054
247,973
-
-
-
-
-
93,820
14,642,176
13,414,581
13,970,618
12,394,627
13,850,564
18,956,303
(1,211,860)
1,191,389
354,628
1,921,493
1,032,806
(3,772,339)
-
-
653,787
1,236,793
2,596,321
2,873,868
510,000
2,000
-
-
1,954
-
-
-
-
-
1,245,000
3,505,000
-
-
-
-
16,173
-
(12,320)
-
(653,787)
(984,125)
(2,444,592)
(4,569,216)
497,680
2,000
-
252,668
1,414,856
1,809,652
$ 1 80)
$ 1,193,389
$ 354,628
$ 2,174,161
$ 2,447,662
$ (1,962,687)
11.2%
15.1%
9.7%
9.8%
6.4%
10.5%
-155-
THIS PAGE IS LEFT BLANK
INTENTIONALLY
-156-
-157-
CITY OF NEW HOPE, NIINNESOTA
STATISTICAL SECTION (UNAUDITED)
GENERAL GOVERNMENT TAX REVENUES BY SOURCE
LAST TEN FISCAL YEARS
(modified accrual basis of accounting)
Fiscal
Property Tax
Franchise
Year
tax increments
tax
Total
2002
$ 6,966,400 $ 1,253,256 $
-
$ 8,219,656
2003
6,994,779 1,171,050
-
8,165,829
2004
7,298,179 1,131,601
428,265
8,858,045
2005
7,078,215 991,476
435,875
8,505,566
2006
7,134,684 1,195,721
433,806
8,764,211
2007
7,713,075 1,673,394
444,898
9,831,367
2008
8,074,253 1,835,749
441,133
10,351,135
2009
8,636,370 1,262,598
438,744
10,337,712
2010
8,694,245 1,408,256
430,494
10,532,995
2011
8,767,959 1,400,163
439,795
10,607,917
-157-
CITY OF NEW HOPE, MINNESOTA
STATISTICAL SECTION (UNAUDITED)
TAX CAPACITY, MARKE VALUE AND ESTIMATED ACTUAL VALUE OF TAXABLE PROPERTY
LAST TEN FISCAL YEARS
(Shown by year of tax collectability)
Taxable market value
Real property
Personal property
Total taxable market value
Estimated actual value of taxable property
Taxable market value as a percentage of
estimated actual value
Tax capacity
Real property
Personal property
Subtotal
Less: tax increment
Less: contribution to fiscal disparities
Add: distribution from fiscal disparities
Fiscal Year
2002 2003 2004 2005
$ 1,086,880,900 $ 1,190,848,500 $ 1,307,693,600 $ 1,423,083,200
$ 14,189,611
128,062
14,317,673
(899,178)
(1,691,988)
2,014,124
$ 13,740,631
$ 15,270,524
133,023
15,403,547
(883,555)
(1,785,912)
2,173,844
$ 14,907,924
$ 16,113,831
138,157
16,251,988
(836,351)
(1,950,724)
2,419,948
$ 15,884,861
$ 17,385,942
144,681
17,530,623
(773,458)
(1,937,115)
2,506,494
$ 17,326,544
Net tax capacity
Tax levies
Revenue
Bonds and interest
Total
Tax capacity rate
Revenue
Bonds and interest
Sewer district
Total direct tax rate
53.790 % 49.590 % 46.280 % 0.277 %
Source: Hennepin County Auditor /Treasurer Department
Note: Property in the county is reassessed annually.
Note: The City changed the format of this table for 2010, and will be updating on a go- forward basis.
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Fiscal Year
2006 2007 2008 2009 2010 2011
$
1,618,178,200
$
1,492,408,000
$
7,624,400
$
8,162,100
$
1,625,802,600
$
1,500,570,100
$ 1,571,305,700 $ 1,692,471,900 $ 1,750,807,800 $ 1,732,235,700 $
1,629,433,100
$
1,504,929,000
99.78 % 99.71 %
$ 18,838,116
$ 20,386,553
$ 21,248,319
$ 21,095,335
$
19,864,103
$
18,462,796
163,526
172,470
151,679
146,456
148,346
159,492
19,001,642
20,559,023
21,399,998
21,241,791
20,012,449
18,622,288
(1,024,773)
(1,471,827)
(1,646,615)
(1,365,233)
(1,181,390)
(1,044,830)
(1,898,610)
(2,035,088)
(2,292,166)
(2,518,620)
(2,596,468)
(2,466,459)
2,647,714
2,806,702
3,398,192
3,821,605
3,946,315
3,896,651
$ 18,725,973
$ 19,858,810
$ 20,859,409
$ 21,179,543
$
20,180,906
$
19,007,650
$
9,053,443
$
9,036,625
39,268
192,105
$
9,092,711
$
9,228,730
45.542 47.916 %
0.199 1.025
0.273 0.308
0.245 % 0.301 % 0.280 % 0.273 % 46.014 % 49.249 %
-159-
CITY OF NEW HOPE, MINNESOTA
STATISTICAL SECTION (UNAUDITED)
PROPERTY TAX CAPACITY RATES - DIRECT AND OVERLAPPING GOVERNMENTS
LAST TEN FISCAL YEARS
Year
Taxes
Payable
Direct Rate - City of New Hope
General Debt Sewer District
Levy Levy Levy
Total
2002
N/A %
N/A %
N/A %
53.790 %
2003
N/A
N/A
N/A
49.590
2004
N/A
N/A
N/A
46.280
2005
39.425
6.661
0.190
46.276
2006
37.497
4.601
0.277
42.375
2007
39.782
2.319
0.245
42.346
2008
39.308
2.386
0.301
41.995
2009
39.131
1.931
0.280
41.342
2010
45.542
0.199
0.273
46.014
2011
47.916
1.025
0.308
49.249
Source: Hennepin County Auditor/Treasurer Department
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).
-160-
Overlapping Rates
School
District
County
No. 281 Other Total
50.410 %
30.210 %
7.390 %
141.800 %
50.610
29.180
7.760
137.140
44.170
29.990
7.820
128.260
44.170
29.990
7.520
127.956
41.020
28.490
7.220
119.105
39.110
28.750
7.360
117.566
38.570
27.240
7.820
115.625
40.410
27.210
7.400
116.362
42.640
28.621
9.098
126.373
45.840
34.387
10.068
139.544
-161-
CITY OF NEW HOPE, MINNESOTA
STATISTICAL SECTION (UNAUDITED)
PRINCIPAL PROPERTY TAXPAYERS
CURRENT YEAR AND NINE YEARS AGO
Totals
$ 1,409,293 7.57 %
Source: Hennepin County Auditor /Treasurer Department
-162-
2011
Percent
Tax
of Total
Taxpayer
Capacity
Rank
Tax Capacity
Geneva Management Service, LLC
$ 159,250
1
0.86 %
Paddock Property Ltd. Partnership
156,730
2
0.84
St. Therese Home, Inc.
148,763
3
0.80
Cobalt Industrial Reit
143,850
4
0.77
New Hope Distribution Center, LLC
139,250
5
0.75
Long Ridge Industrial Portfolio
135,250
6
0.73
Minn Masonic Home North Ridge
133,450
7
0.72
FLS Properties
132,250
8
0.71
New Hope / US Swim Partnership
131,250
9
0.70
Welsh Corporate Headquarters
129,250
10
0.69
Lang Nelson Association
-
-
Hoyt / Winnetka LLC
-
-
Oregon Estates Investment Company
-
-
Northridge Property of New Hope
-
-
Individual
-
-
AMB Property LP
-
-
Totals
$ 1,409,293 7.57 %
Source: Hennepin County Auditor /Treasurer Department
-162-
2002
Tax
Capacity
143,470
179,694
128,830
130,270
174,906
133,130
128,394
125,046
123,410
121,110
$ 1,388,260
Percent
of Total
Rank Tax Capacity
3 0.79
1 0.99
6 0.71
5 0.71
2 0.96
4 0.73
7 0.70
8 0.69
9 0.68
10 0.66
7.62 %
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INTENTIONALLY
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CITY OF NEW HOPE, MINNESOTA
STATISTICAL SECTION (UNAUDITED)
PROPERTY TAX LEVIES AND COLLECTIONS
LAST TEN FISCAL YEARS
Source: Hennepin County Auditor /Treasurer Department
(1) Includes state paid property tax credits.
-165-
(1)
Percent
Collection
Percentage
Collection
of Total
Fiscal
Total
of Current
of Levy
in subsequent
Total
Collections
Year
Levy
Year's Levy
Collected
years
Collections
to Levy
2002
$ 7,016,970
$ 6,959,812
99.19 %
$ 57,158
$ 7,016,970
100.00 %
2003
7,015,141
6,950,015
99.07
65,126
7,015,141
100.00
2004
7,430,161
7,329,071
98.64
101,090
7,430,161
100.00
2005
7,660,102
7,582,360
98.99
73,061
7,655,421
99.94
2006
7,706,733
7,623,003
98.91
79,786
7,702,789
99.95
2007
8,093,813
7,984,889
98.65
104,887
8,089,776
99.95
2008
8,452,126
8,343,629
98.72
106,492
8,450,121
99.98
2009
8,457,346
8,382,201
99.11
71,251
8,453,452
99.95
2010
9,092,711
8,983,224
98.80
81,495
9,064,719
99.69
2011
9,228,730
9,063,615
98.21
-
9,063,615
98.21
Source: Hennepin County Auditor /Treasurer Department
(1) Includes state paid property tax credits.
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CITY OF NEW HOPE, MINNESOTA
STATISTICAL SECTION (UNAUDITED)
RATIOS OF OUTSTANDING DEBT BY TYPE
LAST TEN FISCAL YEARS
Business -type
Note: Details regarding the City's outstanding debt can be found in the notes to the financial statements.
See Demographic and Economic Statistics on page 173 for personal income and population data.
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Governmental Activities
Activities
General
Special
Tax
Lease
Fiscal
Obligation
Assessment
Increment
Revenue
Revenue
Year
Bonds
Bonds
Bonds
Bonds
Bonds
2002
$ 2,905,000
$ 5,380,000
$ 2,485,000
$ -
$ 4,575,000
2003
2,835,000
4,035,000
1,965,000
-
4,255,000
2004
2,135,000
3,540,000
5,755,000
-
3,935,000
2005
2,160,000
2,290,000
6,905,000
-
3,620,000
2006
1,515,000
2,020,000
6,395,000
-
3,300,000
2007
1,065,000
1,180,000
5,875,000
-
2,965,000
2008
605,000
1,045,000
5,360,000
-
2,620,000
2009
225,000
910,000
4,795,000
-
2,265,000
2010
1,280,000
775,000
4,605,000
-
2,930,000
2011
1,245,000
-
4,410,000
3,505,000
2,360,095
Note: Details regarding the City's outstanding debt can be found in the notes to the financial statements.
See Demographic and Economic Statistics on page 173 for personal income and population data.
-166-
Total Percentage
Primary of Personal
Government Income
Per
Capita
$ 15,345,000
1.68 %
736
13,090,000
1.39
628
15,365,000
1.54
737
14,975,000
1.45
718
13,230,000
1.20
633
11,085,000
1.01
532
9,630,000
0.87
462
8,195,000
0.79
396
9,590,000
0.83
472
11,520,095
1.05
566
-167-
CITY OF NEW HOPE, MINNESOTA
STATISTICAL SECTION (UNAUDITED)
RATIOS OF GENERAL BONDED DEBT OUTSTANDING
LAST TEN FISCAL YEARS
Percentage
Less
Actual Value
Amounts
Per
Property
General
Available in
Net
Fiscal
Obligation
Debt Service
Bonded
Year
Bonds
Funds
Debt
2002
$ 10,770,000
$ 9,438,987
$ 1,331,013
2003
8,835,000
8,437,888
397,112
2004
11,430,000
7,886,432
3,543,568
2005
11,355,000
6,383,506
4,971,494
2006
9,930,000
6,294,149
3,635,851
2007
8,120,000
5,992,108
2,127,892
2008
7,010,000
6,571,884
438,116
2009
5,930,000
6,450,295
(520,295)
2010
6,660,000
4,288,603
2,371,397
2011
5,655,000
465,243
5,189,757
Percentage
of Estimated
Actual Value
of Taxable
Per
Property
Capita
0.122 %
64
0.033
19
0.271
170
0.349
239
0.231
174
0.126
102
0.025
21
(0.030)
(25)
0.146
117
0.345
255
Note: Details regarding the City's outstanding debt can be found in the notes to the financial statements.
See Tax Capacity, Market Value and Estimated Actual Value of Taxable Property on page 160 for property value data.
See Demographic and Economic Statistics on page 173 for population data.
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CITY OF NEW HOPE, MINNESOTA
STATISTICAL SECTION (UNAUDITED)
COMPUTATION OF DIRECT AND OVERLAPPING DEBT
DECEMBER 31, 2011
Direct debt
City of New Hope
Overlapping debt
Hennepin County
Independent School District #281, Robbinsdale
Metropolitan Council
Three Rivers Park District
Total overlapping debt
Total direct and overlapping debt
* The percentage 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.
Note: 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 recognized that, when considering the government'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.
Source : Assessed value data used to estimate applicable percentages and outstanding debt data for overlapping entities was provided
-169-
Percentage
City's
Outstanding
Applicable to
Share
Debt
District *
of Debt
$
11,520,095
100.00
%
$
11,520,095
$
1,129,045
1.26
%
$
14,226
172,465,000
19.35
33,371,978
167,600,000
0.57
955,320
73,985,000
1.74
1,287,339
$
415,179,045
8.58
%
$
35,628,862
$
426,699,140
11.05
%
$
47,148,957
* The percentage 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.
Note: 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 recognized that, when considering the government'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.
Source : Assessed value data used to estimate applicable percentages and outstanding debt data for overlapping entities was provided
-169-
Note: Under state law, the City's outstanding general obligation debt should not exceed 3 percent of the market value of
taxable property. Prior to 2008, state law provided that general obligation debt should not exceed 2 percent. By law, the
general obligation debt subject to the limitation may be offset by amounts set aside for the extinguishment of those obligations.
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CITY OF NEW HOPE, MINNESOTA
STATISTICAL SECTION (UNAUDITED)
LEGAL DEBT MARGIN INFORMATION
LAST TEN FISCAL YEARS
Fiscal Year
2002 2003
2004
2005
Debt limit
$ 21,737,618 $ 23,816,970 $
26,153,872
$ 28,461,664
Total net debt applicable to limit
1,472,376 1,353,643
588,019
892,849
Legal debt margin
$ 20,265,242 $ 22,463,327 $
25,565,853
$ 27,568,815
Total net debt applicable to the limit
as a percentage of debt limit
6.77% 5.68%
2.25%
3.14%
Note: Under state law, the City's outstanding general obligation debt should not exceed 3 percent of the market value of
taxable property. Prior to 2008, state law provided that general obligation debt should not exceed 2 percent. By law, the
general obligation debt subject to the limitation may be offset by amounts set aside for the extinguishment of those obligations.
-170-
Fiscal Year
2006
2007
2008
2009
2010
2011
General obligation bonds
1,245,000
Less: amount available in
debt service funds
(172,322)
$ 31,426,114
$ 33,849,438
$ 52,524,234
$ 51,967,071
$ 48,774,078
$ 45,017,103
191,516
108,094
72,562
37,561
1,246,878
1,072,678
$ 31,234,598
$ 33,741,344
$ 52,451,672
$ 51,929,510
$ 47,527,200
$ 43,944,425
0.61 % 0.32% 0.14% 0.07% 2.56% 2.38%
Legal Debt Margin Calculation for Fiscal Year 2011
Taxable market value
$ 1,500,570,100
Debt limit (3 percent of market value)
$ 45,017,103
Debt applicable to limit
General obligation bonds
1,245,000
Less: amount available in
debt service funds
(172,322)
Total net debt applicable to limit
1,072,678
Legal debt margin
$ 43,944,425
-171-
CITY OF NEW HOPE, MINNESOTA
STATISTICAL SECTION (UNAUDITED)
PLEDGED REVENUE COVERAGE
LAST TEN FISCAL YEARS
(1) Gross revenues include interest and other nonoperating revenues_
(2) Operating expenses exclude depreciation.
(3) Revenues and expenses include the Storm Water Fund, Water Utility Fund, and Sewer Utility Fund.
Note: Details regarding the City's outstanding debt can be found in the notes to the financial statements.
-172-
Revenue Bonds (3)
(1)
(2)
Net
Fiscal
Gross
Operating
Revenue
Debt Service
Year
Revenue
Expenses
Available
Principal
Interest
Coverage
2002
$ 4,938,117
$ 4,174,288
$ 763,829
$ 290,000 $
179,895
162.55 %
2003
5,755,673
5,205,356
550,317
320,000
205,002
104.82
2004
6,335,891
5,517,433
818,458
320,000
194,823
158.98
2005
5,723,843
4,803,961
919,882
315,000
181,163
185.40
2006
5,848,087
5,306,582
541,505
320,000
163,874
111.91
2007
6,317,849
4,867,502
1,450,347
335,000
151,830
297.92
2008
6,520,685
5,153,960
1,366,725
345,000
139,000
282.38
2009
6,524,839
5,535,015
989,824
355,000
121,865
207.57
2010
7,131,115
5,046,701
2,084,414
1,520,000
168,236
123.47
2011
6,646,747
5,527,230
1,119,517
981,643
74,418
106.01
(1) Gross revenues include interest and other nonoperating revenues_
(2) Operating expenses exclude depreciation.
(3) Revenues and expenses include the Storm Water Fund, Water Utility Fund, and Sewer Utility Fund.
Note: Details regarding the City's outstanding debt can be found in the notes to the financial statements.
-172-
CITY OF NEW HOPE, MINNESOTA
DEMOGRAPHIC AND ECONOMIC STATISTICS
LAST TEN FISCAL YEARS
(1) Population was estimated by the City Planning and Development Department for fiscal 2002 -2005. Other fiscal years provided by
Metropolitan Council.
(2) Provided by the Bureau of Economic Analysis; US Department of Commerce. This figure is for all of Hennepin County.
(3) Calculated by multiplying the estimated population by the per capita personal income figure.
(4) US Census Bureau
(5) Provided by Independent School District #281, Robbinsdale, MN.
(6) Provided by the Bureau of Labor Statistics; US Department of Labor. This figure is for all of Hennepin County.
-173-
Per Capita
Total
Fiscal
Personal
Personal
Median
School
Unemployment
Year
Population (1)
Income (2)
Income (3)
Age (4)
Enrollment (5)
Rate (6)
2002
20,843
43,881
914,611,683
38.3
13,543
4.0 %
2003
20,843
45,333
944,875,719
38.3
13,561
4.2
2004
20,843
48,021
1,000,901,703
38.3
13,186
3.7
2005
20,843
49,566
1,033,104,138
38.3
13,020
3.4
2006
20,904
52,905
1,105,926,120
38.3
13,201
3.5
2007
20,824
52,905
1,101,693,720
38.3
12,901
5.5
2008
20,860
52,905
1,103,598,300
38.3
12,600
6.9
2009
20,718
49,789
1,031,528,502
38.3
12,000
7.2
2010
20,339
56,564
1,150,455,196
38.0
11,839
7.0
2011
20,339
54,008
1,098,468,712
36.0
11,804
5.6
(1) Population was estimated by the City Planning and Development Department for fiscal 2002 -2005. Other fiscal years provided by
Metropolitan Council.
(2) Provided by the Bureau of Economic Analysis; US Department of Commerce. This figure is for all of Hennepin County.
(3) Calculated by multiplying the estimated population by the per capita personal income figure.
(4) US Census Bureau
(5) Provided by Independent School District #281, Robbinsdale, MN.
(6) Provided by the Bureau of Labor Statistics; US Department of Labor. This figure is for all of Hennepin County.
-173-
CITY OF NEW HOPE, MINNESOTA
PRINCIPAL EMPLOYERS
CURRENT YEAR AND NINE YEARS AGO (1)
Total
10,805 * 48.53 %
Source: Minnesota Department of Employment and Economic Development.
* This is for Quarter 3 of 2011, as the annual information was not compiled yet.
(1) Information for nine years ago was not available. This table will be updated on a go- forward basis.
-174-
2011
Percentage
of Total City
Employer
Employees
Rank
Employment
Independent School District No. 281
2,200
1
20.36 %
North Ridge Care Center
789
2
7.30
Saint Therese Home of New Hope
650
3
6.02
Perrigo Company
413
4
3.82
Navarre Corporation
280
5
2.59
Coborn's Delivers
240
6
2.22
Liberty Diversified International
200
7
1.85
Dakota Growers Pasta
200
8
1.85
Waymouth Farms, Inc.
137
9
1.27
Parker - Hannifin Oildyne Division
135
10
1.25
Total
10,805 * 48.53 %
Source: Minnesota Department of Employment and Economic Development.
* This is for Quarter 3 of 2011, as the annual information was not compiled yet.
(1) Information for nine years ago was not available. This table will be updated on a go- forward basis.
-174-
2006
Percentage
of Total City
Employees Rank Employment
1,930
1
17.37 %
900
2
8.10
539
3
4.85
277
5
2.49
500
4
4.50
250
6
2.25
173
9
1.56
244
7
2.20
184
8
1.66
170
10
1.53
11,112 46.50 %
-175-
CITY OF NEW HOPE, MINNESOTA
FULL -TIME EQUIVALENT CITY GOVERNMENT EMPLOYEES BY FUNCTION
LAST TEN FISCAL YEARS
Function 2002 2003 2004 2005
General government
Public safety
Police
Officers
Civilians
Public works
Culture and recreation
Total
Source: Various City departments.
21
20
19
18
27
27
28
28
7
5
5
6
22
22
23
21
10
9
9
9
87
83
84
82
-176-
2006
2007
2008
2009
2010
2011
19
21
18
18
15
15
27
30
31
31
30
31
6
7
7
7
7
6
21
23
23
21
22
24
9
9
8
8
8
7
82
90
87
85
82
83
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INTENTIONALLY
-178-
CITY OF NEW HOPE, MINNESOTA
OPERATING INDICATORS BY FUNCTION
LAST FOUR FISCAL YEARS
Function 2008 2009
Function
Public works
Street resurfacing (miles)
Potholes repaired
Culture and recreation
Program registration - adults
Program registration - youth
Attendance at sponsored events
Golf Course
Rounds of golf at the Municipal course
Ice Arena
Hours of ice time rental
Water
Water main breaks
Average daily consumption (thousands of gallons)
Sewer
Average daily treatment (thousands of gallons)
2010 2011
2
2
2
4
150
450
552
500
3,874
3,313
3,796
5,271
5,747
6,360
5,287
5,323
140,600
139,318
137,199
146,305
22,900
23,917
21,686
18,788
3,905
4,027
3,980
3,903
33
37
19
26
2,003
1,921
1,746
1,712
2,360
1,740
1,895
2,253
Sources: Various City departments.
Note: Indicators are not available for the general government function.
Note: Information not available prior to 2008. This table will be updated on a go- forward basis.
-179-
CITY OF NEW HOPE, MINNESOTA
CAPITAL ASSET STATISTICS BY FUNCTION
LAST TEN FISCAL YEARS
Function
Function
Public Safety
Police stations
Fire stations
Public Works
City streets (miles)
State and County streets (miles)
Sidewalks (miles)
Street lights
Railroad bridges
Pedestrian bridges
Culture and recreation
Parks
Swimming pools
Olympic
Recreational
Outdoor theatre
Tennis courts
Water
Water main (miles)
Fire hydrants
Maximum daily capacity (thousands of gallons)
Sewer
Sanitary sewer main (miles)
Storm sewer lines (miles)
Ice Arenas
Golf courses
2002
2003
2004
2005
1
1
1
1
3
3
3
3
64.0
64.0
64.0
64.0
8.5
8.5
8.5
8.5
26.4
26.4
26.4
26.4
580.0
580.0
580.0
580.0
2.0
2.0
2.0
2.0
4.0
4.0
4.0
4.0
23
23
23
23
1
1
1
1
1
1
1
1
1
1
1
1
17
17
17
17
63
63
63
63
690
690
690
690
21,000,000
21,000,000
21,000,000
21,000,000
74
74
74
74
56
56
56
56
1
1
1
1
1
1
1
1
Source: Various City departments.
Note: No capital asset indicators are available for the general government function.
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2006
2007
2008
2009
2010
2011
1
1
1
1
1
1
3
3
3
3
3
3
64.0
64.0
64.0
64.0
64.0
64.0
8.5
8.5
8.5
8.5
8.5
8.5
26.4
26.4
26.4
26.4
26.4
26.4
580.0
580.0
580.0
580.0
580.0
580.0
2.0
2.0
2.0
2.0
2.0
2.0
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
1
1
1
1
1
1
1
1
17
17
17
17
17
17
63
63
63
63
63
63
690
690
690
690
690
690
21,000,000
21,000,000
21,000,000
21,000,000
21,000,000
21,000,000
74
74
74
74
74
74
56
56
56
56
56
56
1
1
1
1
1
1
1
1
1
1
1
1
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