2014 CAFR
CITY OF NEW HOPE
NEW HOPE, MINNESOTA
COMPREHENSIVE ANNUAL FINANCIAL REPORT
FOR THE YEAR ENDED
DECEMBER 31, 2014
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CITY OF NEW HOPE
HENNEPIN COUNTY, MINNESOTA
COMPREHENSIVE ANNUAL FINANCIAL REPORT
FOR THE YEAR ENDED
DECEMBER 31, 2014
KIRK MCDONALD - CITY MANAGER
PREPARED BY: DEPARTMENT OF FINANCE
Member GFOA of U.S. and Canada
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CITY OF NEW HOPE, MINNESOTA
COMPREHENSIVE ANNUAL FINANCIAL REPORT
TABLE OF CONTENTS
FOR THE YEAR ENDED DECEMBER 31, 2014
Page No.
INTRODUCTORY SECTION
Letter of Transmittal from City Manager 5
Certificate of Achievement for Excellence in Financial Reporting 10
Organizational Chart 11
Elected and Appointed Officials 12
FINANCIAL SECTION
Independent Auditor’s Report 15
Management’s Discussion and Analysis 19
Basic Financial Statements
Government-wide Financial Statements
Statement of Net Position 31
Statement of Activities 32
Fund Financial Statements
Governmental Funds
Balance Sheet 36
Reconciliation of the Balance Sheet to the Statement of Net Position 39
Statement of Revenues, Expenditures and Changes in Fund Balances 40
Reconciliation of the Statement of Revenues, Expenditures and
Changes in Fund Balances to the Statement of Activities 42
General Fund
Statement of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual 43
Economic Development Authority Fund
Statement of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual 45
Proprietary Funds
Statement of Net Position 46
Statement of Revenues, Expenses and Changes in Net Position 50
Statement of Cash Flows 52
Fiduciary Funds
Statement of Fiduciary Net Position 56
Notes to the Financial Statements 57
Required Supplementary Information
Schedule of Funding Progress for the Postemployment Benefit Plan 84
Combining and Individual Fund Financial Statements and Schedules
Nonmajor Governmental Funds
Combining Balance Sheet 86
Combining Statement of Revenues, Expenditures and Changes in Fund Balances 87
Nonmajor Special Revenue Funds
Subcombining Balance Sheet 90
Subcombining Statement of Revenues, Expenditures and Changes in Fund Balances 91
Schedule of Revenues, Expenditures, and Changes in Fund Balances - Budget and Actual
Solid Waste Management Fund 92
Nonmajor Capital Projects Funds
Subcombining Balance Sheet 94
Subcombining Statement of Revenues, Expenditures and Changes in Fund Balances 95
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CITY OF NEW HOPE, MINNESOTA
COMPREHENSIVE ANNUAL FINANCIAL REPORT
TABLE OF CONTENTS - CONTINUED
FOR THE YEAR ENDED DECEMBER 31, 2014
Page No.
Combining and Individual Fund Financial Statements and Schedules - Continued
General Fund
Schedule of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual 97
Internal Service Funds
Combining Statement of Net Position 104
Combining Statement of Revenues, Expenses and Changes in Net Position 105
Combining Statement of Cash Flows 106
Agency Fund
Statement of Changes in Assets and Liabilities 107
STATISTICAL SECTION (UNAUDITED)
Financial Trends
Summary Financial Report
Revenues and Expenditures for General Operations - Governmental Funds 113
Net Position by Component 114
Changes in Net Position 116
Governmental Activities Tax Revenues by Source 121
Fund Balances of Governmental Funds 122
Changes in Fund Balances of Governmental Funds 124
General Government Tax Revenues by Source 127
Revenue Capacity
Tax Capacity, Market Value and Estimated Actual Value of Taxable Property 128
Property Tax Capacity Rates - Direct and Overlapping Governments 130
Principal Property Taxpayers 132
Property Tax Levies and Collections 135
Debt Capacity
Ratios of Outstanding Debt by Type 136
Ratios of General Bonded Debt Outstanding 138
Computation of Direct and Overlapping Debt 139
Legal Debt Margin Information 140
Pledged Revenue Coverage 142
Demographic and Economic Information
Demographic and Economic Statistics 143
Principal Employers 144
Operating Information
Full-Time Equivalent City Government Employees by Function 146
Operating Indicators by Function 149
Capital Asset Statistics by Function 150
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INTRODUCTORY SECTION
CITY OF NEW HOPE
NEW HOPE, MINNESOTA
FOR THE YEAR ENDED
DECEMBER 31, 2014
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May 19, 2015
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, 2014, 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 20,904. 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 O F NEW HOPE
4401 Xylon Avenue North • New Hope, Minnesota 55428-4898 • www.ci.new-hope.rrm.us
City Hall: 763-531-5100 • Police (non-emergency): 763-531-5170 • Public Works: 763-592-6777 • TDD: 763-531-5109
City Hall Fax: 763-531-5136 • Police Fax: 763-531-5174 • Public Works Fax: 763-592-6776
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The City's accounting system is organized and operated on a "fund basis." Each fund is a distinct self-balancing accounting entity. The
City's accounting records for governmental fund types are maintained on the modified accrual basis and the accrual basis is utilized by
proprietary 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 and the Housing and Redevelopment Authority (HRA) reports a debt service fund and a capital
projects fund within the primary government.
The City provides a full range of municipal services, including: police and fire protection, culture and recreation, public
improvements, street maintenance, sanitary and storm sewer collection, water distribution, planning, zoning and building inspection
services, and general administrative services.
ECONOMIC OUTLOOK
The City is a nearly fully developed community with little vacant land available for development. The City has a good mix of
single/multi-family residential housing stock, parks and open space, and a strong commercial/industrial tax base.
There are approximately 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 1.900
Intermediate District 287 Education 868
Minnesota Masonic Home/North Ridge Care Center Skilled nursing care facility 695
St. Therese Home of New Hope Skilled nursing care facility 689
Perrigo Company Pharmaceutical and medicine manufacturing 333
Coborn’s Delivers Direct selling establishments 240
Liberty Diversified International Stationery supplies 200
Dakota Growers Pasta Company Macaroni and spaghetti 150
Waymouth Farms, Inc. Salted and roasted nuts and seeds 150
Parker - Hannifin Oildyne Division Fluid power cylinders and actuators 142
The City has four major industrial park areas including Science Industry Park, 49th and Quebec Avenues, Winnetka Avenue area
between 32nd and 36th Avenues, and north of Medicine Lake Road on Nevada Avenue.
The major shopping centers/areas in the City include: Midland Shopping Center, Winnetka Commons Shopping Center, New Hope
Mall, Winnetka Center, Post Haste Square, and the 42nd Avenue Redevelopment District.
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Business Assistance Programs
Local commercial/industrial businesses are extremely important to the City. The City Council has undertaken programs and initiatives
to address both commercial and industrial properties. These programs focus on: 1} retaining existing businesses, 2} assisting with
expansions, 3} attracting new businesses to vacant available buildings, 4} attracting new construction to a limited number of available
vacant sites, and 5} improving communication with businesses and responding more effectively to business concerns and inquiries.
The City Council has continued the Outstanding Business Award Program initiated in 2006, to recognize the City's businesses'
contributions to the local community.
In 2009, the Business Networking Group forum was established to share information and improve communications between
businesses and the City and the forum continued through 2014. The City is also a long time member of the TwinWest Chamber of
Commerce. The city has also partnered with Hennepin County and Open to Business, a company that provides free business advice
and also provides gap financing.
In 2014, $28,030,136 of reinvestment was approved in the City in construction permits. The City will work to increase the momentum
to continually expand the tax base while continuing to provide the high level of services delivered to the residents, businesses, and
property owners of the City.
PLANNING AND DEVELOPMENT
The following planning and development activities occurred in 2014:
Compass Pointe
Construction was started on a four-story, 68-unit multi-family residential apartment building at the southwest corner of 62nd Avenue
North and West Broadway Avenue North. The $13 million facility will be geared towards families, with incomes at or below 60% of
the area median income. Construction is currently underway with a completion date being in the fall of 2015.
Centra Homes, Inc.
Centra Homes negotiated with the City to purchase the former Winnetka Learning Center property and was granted a Comprehensive
Plan Amendment to re-guide the area for one and two family residential. Centra Homes has recently applied for a Preliminary Plat
that includes 60 new single-family homes on the 17-acre site.
The Gates of New Hope
The owners of the property sought approval of a Preliminary Plat and variance to construct a 32-unit market-rate apartment building
on the site, located at the corner of Medicine Lake Road and Hillsboro Avenue. Construction is currently underway with the
completion date being in June of 2015.
Park Place Storage
The owners of the property sought approval of a conditional use permit to convert an existing warehouse space into mini storage. The
units would not be for rent, but would only be available for purchase. Some exterior renovations to the building were also approved.
Mayflower Properties
The owners of the property at 9300 – 52nd Avenue sought approval of a conditional use permit to convert an existing warehouse space
into self storage.
Winnetka Commons
The owners of the Winnetka Commons Shopping Center sought approval of a preliminary plat and a conditional use permit to amend
an existing planned unit development in order to construct a 4,600 square foot retail building close to the intersection of Winnetka and
36th avenues.
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Hy-Vee Grocery Store
Hy-Vee, Inc. negotiated with the City for the purchase of the former Kmart Shopping Center. Hy-Vee was granted a rezoning of the
property and a preliminary and final plat for the construction of a 90,000 square foot grocery store. The estimated $12M project will
also include a gas station with a convenience store and a future redevelopment of a third lot on the property. Construction is underway
with an anticipated completion date in October 2015.
Xylon Avenue Streetscape Improvements
In conjunction with the Hy-Vee Grocery Store redevelopment, the city has started the process of revitalizing the appearance of Xylon
Avenue. The approximate $5M of improvements includes all new sewer, water, gas and electric utilities, the burial of overhead utility
lines, and a new emphasis on the entryway into the City Center District. Streetscape elements include a new electronic reader board
sign, a welcoming gateway arch, banner columns, arbors, streetlights and trees.
Housing
The City's commitment to maintaining its housing stock is supported through a variety of cooperative projects and programs.
Approximately $2,435,867 was reinvested in the City's housing stock in 2014 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 2014 continued the expenditure of previously allocated CDBG funds.
ii. The city continued to operate their scattered site housing program by acquiring two properties for
demolition. The city will sell the properties to a developer to build new single-family homes on them.
b. 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.
2. Housing maintenance programs:
a. Code compliance inspections - 1,751 inspections completed in 2014.
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 rental units were registered with the City.
iii. A total of 3,563 multi-family rental units were registered with the City.
c. Multifamily Property Manager's Association - quarterly meetings.
d. Partnership with Center for Energy and Environment and Hennepin County for fix-up loans and grants.
3. Metropolitan Council Livable Communities Act - annually renewed by the City.
PARKS AND RECREATION
The City provides the residents with a vast array of park amenities and recreation opportunities at an affordable cost. The city
maintains 18 parks, two additional school district parks (summer only), an outdoor swimming pool, two sheets of indoor ice at the ice
arena, a par 3 nine-hole golf course, outdoor theatre and skate park. The outdoor facilities continued to maintain good attendance
numbers although numbers were lower than 2013 due to the cold, wet spring and the elimination of the Five Cities Transportation
program and related activities.
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In 2014, the oldest playground area in the system, located at Little Acre Park, was replaced and path work upgraded. Court repair work
was completed at the Sunny Hollow tennis courts and Little Acre basketball court. The playground equipment at Corner Park was painted
and Buckthorn removal was done in several parks. At the outdoor theatre, Movies in the Park was added and was very popular with
the residents. Sponsorships were also received for each of the three movies. The outdoor swimming pool continues to be rented by
local swim teams for practices during non public swim time. In 2014, several electrical panels in the main pool pump room were
replaced and two new shade umbrellas for the pool deck were added. The ice arena continues with year-round use of ice time for
youth, adult recreational, league hockey and skating lessons. The facility also rents ice time to local tournament groups such as Elite
and Showcase. In 2014, the electronic sign, new sound systems and dryland training area projects were all completed. Skate tile in
locker rooms 1-4 and both sets of Zamboni batteries were replaced. A recommissioning study of the HVAC equipment on the south
rink was completed by McKinstry using Energy Policy Act (EPACT) funds. In addition, the city entered into a 21-month lease
agreement with Charleston Overspeed Training for the dryland training area and the concession stand operations and advertisement
agreements with the Armstrong Cooper Youth Hockey Association were both renewed. The golf course continues to offer leagues,
lessons, tournaments and open golf for all age groups. During the non-golf season, the clubhouse is rented to outside groups. In 2014,
the golf staff started using TeeMaster.com for on-line tee time reservations. In addition, the irrigation pump was replaced and new golf
carts were leased.
PROPERTY TAX PROCESS
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.
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 2014 that will highlight the tax effect of
major capital and operating decisions. This will also be an important document when preparing future budgets.
AWARDS AND ACKNOWLEDGEMENTS
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, 2013. 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, AEM Financial Solutions, LLC (the City’s contracted finance director) other City departments,
and the staff of MMKR.
We wish to express our appreciation to all the contributors for their efforts to complete this report.
Respectfully submitted,
Kirk McDonald
City Manager
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City of New Hope
March 2014
Parks & Recreation
Recreation
Parks
Recreation Facilities
Forestry
Police
Patrol
Investigation
Community Services
Animal Control
Crime Prevention
School Liaison
Reserves
Explorers
Public Works
Utility Billing
Utilities
Central Garage
Streets
Parks Maintenance
Human Resources /
Administrative Services
Human Resources
Safety
Info Technology
Communications
Risk Mgmt/Insurance
Finance/Accounting
Payroll
Community Development
Inspections
Permits
Housing
Economic Development
Planning/Zoning
Planning Commission
Citizen Advisory
Commission
Human Rights Commission
Personnel Board
City Attorney
Steve Sondrall
City Engineer
Stantec
Fiscal Advisors
AEM
Dorsey and Whitney
Ehlers
West Metro Fire-Rescue District
Fire Suppression
Fire Prevention
Emergency Mgmt. Coord.
Rescue
Explorers
City Council
Policy
EDA Board
HRA Board
City Manager
Chief Administrator
Government Relations
Budget
Council Relations
Emergency Management
Fire Board
EDA Executive Director
HRA Executive Director
Audit
JWC Commission
HRG Representative
AEM Contract
City Clerk/Treasurer
Council Relations
Elections
Licensing
Insurance
City Hall Facility
Residents
City Planner
Alan Brixius
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CITY OF NEW HOPE
ELECTED AND APPOINTED OFFICIALS
FOR THE YEAR ENDED DECEMBER 31, 2014
Name Title Term Expires
Kathi Hemken Mayor 12/31/16
John Elder Council Member 12/31/14
Andrew Hoffe Council Member 12/31/16
Eric Lammle Council Member 12/31/16
Daniel Stauner Council Member 12/31/14
Name Title
Kirk McDonald City Manager
Bob Paschke Director of Public Works
Jeff Sargant Director of Community Development
Susan Rader Director of Parks and Recreation
Tim Fournier Director of Police
Rich Johnson Director of Human Resources and Administrative Services
Valerie Leone City Clerk
ELECTED
APPOINTED
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FINANCIAL SECTION
CITY OF NEW HOPE
NEW HOPE, MINNESOTA
FOR THE YEAR ENDED
DECEMBER 31, 2014
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INDEPENDENT AUDITOR’S REPORT
To the City Council and Management
City of New Hope, Minnesota
REPORT ON THE FINANCIAL STATEMENTS
We have audited the 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, 2014, and the related notes to the financial statements, which
collectively comprise the City’s basic financial statements as listed in the table of contents.
MANAGEMENT’S RESPONSIBILITY FOR THE FINANCIAL STATEMENTS
Management is responsible for the preparation and fair presentation of these financial statements in
accordance with accounting principles generally accepted in the United States of America; this includes
the design, implementation, and maintenance of internal controls relevant to the preparation and fair
presentation of financial statements that are free from material misstatement, whether due to fraud or
error.
AUDITOR’S RESPONSIBILITY
Our responsibility is to express opinions on these financial statements based on our audit. 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 from material misstatement.
An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in
the financial statements. The procedures selected depend on the auditor’s judgment, including the
assessment of the risks of material misstatement of the financial statements, whether due to fraud or error.
In making those risk assessments, the auditor considers internal control relevant to the City’s preparation
and fair presentation of the financial statements in order to design audit procedures that are appropriate in
the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the City’s
internal control. Accordingly, we express no such opinion. An audit also includes evaluating the
appropriateness of accounting policies used and the reasonableness of significant accounting estimates
made by management, as well as evaluating the overall presentation of the financial statements.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for
our audit opinions.
(continued)
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OPINIONS
In our opinion, the financial statements referred to on the previous page 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, 2014, and the
respective changes in financial position and, where applicable, cash flows thereof, and the budgetary
comparisons for the General Fund and major special revenue funds for the year then ended, in accordance
with accounting principles generally accepted in the United States of America.
OTHER MATTERS
Required Supplementary Information
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 the Governmental
Accounting Standards Board 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.
Other Information
Our audit was conducted for the purpose of forming opinions on the financial statements that collectively
comprise the City’s basic financial statements. The introductory section, combining and individual fund
statements and schedules, 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. Such 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 combining and individual fund statements and schedules are fairly stated, in all material respects, in
relation to the basic financial statements as a whole.
The introductory and statistical sections have not been subjected to the auditing procedures applied in the
audit of the basic financial statements and, accordingly, we do not express an opinion or provide any
assurance on them.
Prior Year Comparative Information
We have previously audited the City’s 2013 financial statements, and we expressed unmodified audit
opinions on the respective financial statements of the governmental activities, the business-type activities,
each major fund, and the aggregate remaining fund information in our report dated May 14, 2014. In our
opinion, the partial comparative information presented herein as of and for the year ended December 31,
2013 is consistent, in all material respects, with the audited financial statements from which it has been
derived.
(continued)
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OTHER REPORTING REQUIRED BY GOVERNMENT AUDITING STANDARDS
In accordance with Government Auditing Standards, we have also issued our report dated May 19, 2015
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 internal control
over financial reporting or on compliance. That report is an integral part of an audit performed in
accordance with Government Auditing Standards in considering the City’s internal control over financial
reporting and compliance.
Minneapolis, Minnesota
May 19, 2015
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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, 2014. 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 5 of this report.
Financial Highlights
• The assets of the City exceeded its liabilities at the close of the most recent fiscal year by $72,127,621 (net position). Of this
amount, $24,929,265 (unrestricted net position) may be used to meet the City’s ongoing obligations to citizens and creditors.
• The City’s total net position decreased by $644,022. This was primarily a result of the following factors: the City recognized
a loss on sale of capital assets in the amount of $1,306,547 in governmental funds.
• As of the close of the current fiscal year, the City’s governmental funds reported combined ending fund balances of
$23,985,547, a decrease of $226,774 in comparison with the prior year. Approximately 23.6 percent of this total amount
($5,670,497) is available for spending at the City’s discretion (unassigned fund balance).
• At the end of the current fiscal year, unassigned fund balance for the General fund was $5,805,289 or 51.2 percent of total
General fund 2014 expenditures and transfers out.
• The City’s total noncurrent liabilities decreased by $4,406,250 (27.6 percent) during the current fiscal year. The key factor of
this decrease was the refunding of tax increment bonds during 2014.
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.
The financial statements include notes that explain some of the information in the financial statements and provide more detailed data.
The statements are followed by a section of combining and individual fund financial statements and schedules which further explain
and support the information in the financial statements.
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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
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 position presents information on all of the City’s assets and liabilities, with the difference between the two
reported as net position. Over time increases or decreases in net position may serve as a useful indicator of whether the financial
position of the City is improving or deteriorating.
The statement of activities presents information showing how the City’s net position changed during the most recent fiscal year. All
changes in net position are reported as soon as the underlying event giving rise to the change occurs, regardless of the timing of
related cash flows. Thus, revenues and expenses are reported in 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 31 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.
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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 HRA Bonds funds, all of which are
considered to be major funds. Data from the remaining governmental funds are combined into a single, aggregated presentation.
Individual fund data for each of these non-major governmental funds is provided in the form of combining statements or schedules
elsewhere in this report.
The City adopts annual appropriated budgets for its General fund and 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 36 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 each of the enterprise 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 46 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 56 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 57 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 can be found on page 84 of this report.
The combining statements referred to earlier, in connection with non-major governmental funds and internal service funds are
presented immediately following the required supplementary information. Combining and individual fund financial statements and
schedules start on page 86 of this report.
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Government-wide Financial Analysis
As noted earlier, net position may serve over time as a useful indicator of a government’s financial position. In the case of the City,
assets exceeded liabilities by $72,127,621 at the close of the most recent fiscal year.
A portion of the City’s net position (56.9 percent) reflects its investment in capital assets (e.g., land, buildings, vehicles and
equipment); less any related debt used to acquire those assets that is still outstanding. The City uses these capital assets to provide
services to citizens; consequently, these assets are not available for future spending. Although the City’s investment in its capital
assets is reported net of related debt, it should be noted that the resources needed to repay this debt must be provided from other
sources, since the capital assets themselves cannot be used to liquidate these liabilities.
City of New Hope’s Summary of Net Position
Increase Increase
2014 2013 (Decrease)2014 2013 (Decrease)
Assets
Current and other assets 34,320,365$ 34,631,491$ (311,126)$ 4,002,828$ 3,355,468$ 647,360$
Capital assets, net of depreciation 27,169,525 31,510,102 (4,340,577) 20,614,886 20,370,904 243,982
Total assets 61,489,890 66,141,593 (4,651,703) 24,617,714 23,726,372 891,342
Liabilities
Other liabilities 718,579 607,993 110,586 1,713,442 534,117 1,179,325
Noncurrent liabilities 5,654,730 9,700,241 (4,045,511) 5,893,232 6,253,971 (360,739)
Total liabilities 6,373,309 10,308,234 (3,934,925) 7,606,674 6,788,088 818,586
Net position
Net investment in capital assets 26,305,906 30,509,373 (4,203,467) 14,757,333 14,142,276 615,057
Restricted 5,680,117 1,619,394 4,060,723 455,000 300,000 155,000
Unrestricted 23,130,558 23,704,592 (574,034) 1,798,707 2,496,008 (697,301)
Total net position 55,116,581$ 55,833,359$ (716,778)$ 17,011,040$ 16,938,284$ 72,756$
Governmental Activities Business-type Activities
An additional portion of the City’s net position, $6,135,117, represents resources that are subject to external restrictions on how they
may be used. The remaining balance of unrestricted net position, $24,929,265, may be used to meet the City’s ongoing obligations to
citizens and creditors.
At the end of the current fiscal year, the City is able to report a positive balance in all three categories of net position, both for the City
as a whole, as well as for its separate governmental and business-type activities. The decrease in assets was a result of the City selling
capital assets for economic development, and the decrease in noncurrent liabilities was a result of payment on two refunded bond
issues.
-22-
The following table indicates the changes in net position for the City’s governmental and business-type activities:
City of New Hope’s Changes in Net Position
Increase Increase
2014 2013 (Decrease)2014 2013 (Decrease)
Revenues
Program revenues
Charges for services 2,124,410$ 1,977,435$ 146,975$ 8,151,244$ 7,985,325$ 165,919$
Operating grants and contributions 1,013,058 828,276 184,782 444,484 306,520 137,964
Capital grants and contributions 47,917 3,929,565 (3,881,648) 11,469 225,300 (213,831)
General revenues
Taxes
Property taxes 9,732,776 9,554,629 178,147 - - -
Tax increments 537,871 511,924 25,947 - - -
Franchise taxes 438,541 438,834 (293) - - -
Grants and contributions not
restricted to specific programs 179,537 49,005 130,532 - - -
Unrestricted investment earnings 324,498 198,658 125,840 31,714 7,508 24,206
Gain on sale of capital assets - 37,201 (37,201) - - -
Total revenues 14,398,608 17,525,527 (3,126,919) 8,638,911 8,524,653 114,258
Expenses
General government 1,976,377 1,837,194 139,183 - - -
Public safety 6,795,836 6,238,779 557,057 - - -
Public works 2,467,618 1,790,669 676,949 - - -
Culture and recreation 2,145,224 1,946,243 198,981 - - -
Economic development 1,704,010 431,332 1,272,678 - - -
Interest on long-term debt 140,321 289,009 (148,688) - - -
Sewer utility - - - 1,976,864 2,310,604 (333,740)
Water utility - - - 4,635,686 3,215,714 1,419,972
Golf course - 304,059 262,894 41,165
Ice arena - - - 877,826 957,784 (79,958)
Storm water - - - 558,160 768,610 (210,450)
Street lighting - - - 99,560 117,518 (17,958)
Total expenses 15,229,386 12,533,226 2,696,160 8,452,155 7,633,124 819,031
Changes in net position before transfers (830,778) 4,992,301 (5,823,079) 186,756 891,529 (704,773)
Transfers - internal activities 114,000 (317,987) 431,987 (114,000) 317,987 (431,987)
Change in net position (716,778) 4,674,314 (5,391,092) 72,756 1,209,516 (1,136,760)
Net position, January 1 55,833,359 51,159,045 4,674,314 16,938,284 15,728,768 1,209,516
Net position, December 31 55,116,581$ 55,833,359$ (716,778)$ 17,011,040$ 16,938,284$ 72,756$
Governmental Activities Business-type Activities
The increase in economic development expenses were a result of a loss on a sale of capital assets for economic development purposes.
The decrease in capital grants and contributions were a result of a significant state aids received in the prior year for projects that was
not received in the current year.
The increase in water utility expenses is a result of a payment to the New Hope Joint Water Commission (JWC) for an emergency
well project.
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Governmental activities. Governmental activities decreased the City’s net position by $716,778, thereby accounting for
111.3 percent of the total decline in net position of the City.
Expenses - The following chart illustrates the City’s expenses and program revenues for its governmental activities:
Expenses and Program Revenues - Governmental Activities
$-
$500,000
$1,000,000
$1,500,000
$2,000,000
$2,500,000
$3,000,000
$3,500,000
$4,000,000
$4,500,000
$5,000,000
$5,500,000
$6,000,000
$6,500,000
$7,000,000
$7,500,000
General government Public safety Public works Culture and
recreation
Economic
development
Interest on long-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
Charges for services
14.9%Operating grants and
contributions
7.0%
Capital grants and
contributions
0.3%
Property taxes
67.6%
Tax increments
3.7%
Franchise taxes
3.0%
Grants and
contributions
unrestricted
1.2%
Unrestricted investment
earnings
2.3%
-24-
Business-type activities. The net position of business-type activities increased by $72,756, thereby offsetting a portion of the
decrease in the governmental activities net position of the City. This increase was primarily the result of total net revenues from the
programs of $155,042, particularly with sewer and storm water utility operations of $437,618 and $390,377, respectively.
Below are the graphs showing the business-type activities revenue and expense comparisons.
Expense and Program Revenues - Business-type Activities
$-
$500,000
$1,000,000
$1,500,000
$2,000,000
$2,500,000
$3,000,000
$3,500,000
$4,000,000
$4,500,000
$5,000,000
Sewer utility Water utility Golf course Ice arena Storm water Street lighting
Expenses Program revenues
Revenue Sources - Business-type Activities
Charges for services
94.4%
Operating grants and
contributions
5.1%
Capital grants and
contributions
0.1%
Unrestricted
investment earnings
0.4%
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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 $23,985,547, a decrease
of $226,774 in comparison with the prior year. Approximately 23.6 percent of this total amount, $5,670,497, constitutes unassigned
fund balance, which is available for spending at the City’s discretion. The remainder of fund balance is either not available for new
spending, or available for new spending, but limited in use, because it is either 1) nonspendable ($16,005), 2) restricted ($5,687,949),
3) committed ($4,771,304), or 4) assigned ($7,839,792). For further classification refer to Note 3F on page 75 of this report.
Activity in the City’s major funds is discussed below:
Increase
2014 2013 (Decrease)
General 5,821,294$ 5,583,417$ 237,877$
Economic Development Authority 4,581,009$ 4,326,022$ 254,987$
The increase in fund balance is primarily due to proceeds from the sale of a capital asset and a prior period adjustment related to correcting
amounts previously shown as deferred inflows for loans receivable that do not meet the definition of deferred inflows.
HRA Construction 5,399,698$ 1,443,302$ 3,956,396$
Street Infrastructure 3,264,052$ 3,908,890$ (644,838)$
Temporary Financing 3,028,957$ 3,130,125$ (101,168)$
HRA Bonds (134,792)$ 3,815,654$ (3,950,446)$
The decrease in fund balance is a result of other financing uses to payoff two refunded bonds resulting in deficit fund balance at year end.
Fund Balance December 31,
Major Funds
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 51.2 percent of total 2014 expenditures and transfers out.
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 primarily a result of the sale of a capital asset.
This fund accounts for capital outlay expenditures related to street infrastructure. The decrease is a result of project costs exceeding current year
revenues.
The Temporary financing fund is used for general capital improvements. In 2014, the fund transferred out $197,461 to support other projects.
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 position of the enterprise funds amounted to $2,836,331. 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
The City’s General fund budget was not amended during the year. The budget called for no change in fund balance. Revenues
provided positive budget variances and expenditures provided positive budget variances. Actual revenues were over budget by
$108,233, and expenditures were under budget by $379,183. In addition the General fund transfers in were $461 more than budget.
The transfers out of $250,000 related to the City Council approved transfer to the City Hall capital fund and the Fire capital fund in the
amounts of $100,000 and $150,000, respectively. This opportunity was not contemplated in the final budget for 2014.
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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, 2014, was
$47,784,411 (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 decrease in the City’s investment in capital assets for
the current fiscal year was 7.9 percent.
Major capital asset events during the current fiscal year consisted of:
• Multiple vehicle and equipment purchases totaling $594,464.
• The City sold a property for economic development purposes with the gross sale proceeds in excess of $3 million was the
most significant event during the year related to capital assets.
City of New Hope’s Capital Assets
(net of depreciation)
Increase Increase
2014 2013 (Decrease)2014 2013 (Decrease)
Land 994,268$ 994,268$ -$ 485,042$ 485,042$ -$
Buildings and structures 3,719,356 3,883,592 (164,236) 6,904,337 7,107,643 (203,306)
Vehicles and equipment 2,726,704 2,868,597 (141,893) 477,647 527,433 (49,786)
Improvements other than
buildings 13,579,271 14,493,949 (914,678) 9,815,400 10,068,349 (252,949)
Construction in progress 6,149,926 9,269,696 (3,119,770) 2,932,460 2,182,437 750,023
Total 27,169,525$ 31,510,102$ (4,340,577)$ 20,614,886$ 20,370,904$ 243,982$
Business-type ActivitiesGovernmental Activities
Additional information on the City’s capital assets can be found in Note 3C starting on page 68 of this report.
Long-term debt. At the end of the current fiscal year, the City had total bonded debt outstanding of $10,787,396. Of this amount
$855,000 will be paid from general property taxes and $4,025,000 from redevelopment district tax increments. The remaining amount
of outstanding bonds at year end were lease revenue bonds and G.O. revenue bonds, for which the City has pledged revenue streams
from the ice arena, sewer utility, water utility, and storm water for all principal and interest payments due on these bonds.
The Debt Service funds have a combined fund balance of $32,201, of which $166,993 is restricted for the payment of debt service and
a deficit of $134,792 is unassigned. The City has intentionally shifted the philosophy for financing major street improvements away
from debt financing to the pay-as-you-go philosophy. The City established the Street and Park Infrastructure capital projects funds in
2001 with dedicated portions of the property tax levy, thereby eliminating this type of debt issuance.
City of New Hope’s Outstanding Debt
Increase Increase
2014 2013 (Decrease)2014 2013 (Decrease)
G.O. bonds and certificates 863,620$ 1,000,729$ (137,109)$ -$ -$ -$
G.O. tax increment bonds 4,066,223 8,065,761 (3,999,538) - - -
Lease revenue bonds - - - 3,505,000 3,505,000 -
G.O. revenue bonds and notes - - - 2,352,553 2,723,628 (371,075)
Capital leases payable - - - - - -
Compensated absences 493,943 476,352 17,591 - - -
Other postemployment benefits 230,944 157,399 73,545 35,679 25,343 10,336
Total 5,654,730$ 9,700,241$ (4,045,511)$ 5,893,232$ 6,253,971$ (360,739)$
Governmental Activities Business-type Activities
The City achieved an “AA” rating from Standard and Poor’s. Additional information on the City’s long-term debt can be found in
Note 3E starting on page 71 of this report.
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Economic Factors and Next Year’s Budgets and Rates
ECONOMIC OUTLOOK
• User charges have been increased to account for various utility improvements scheduled for 2014 and beyond.
• The overall tax levy had a 3.95 percent increase in 2015. The increase was intended to capture the tax capacity from a major
retired TIF district.
• Management provided a long-term plan to City Council in 2014 that will highlight the tax effect of major capital and
operating decisions. This will also be an important document when preparing future budgets.
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.
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GOVERNMENT-WIDE FINANCIAL STATEMENTS
CITY OF NEW HOPE
NEW HOPE, MINNESOTA
FOR THE YEAR ENDED
DECEMBER 31, 2014
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THIS PAGE IS LEFT BLANK
INTENTIONALLY
-30-
CITY OF NEW HOPE, MINNESOTA
STATEMENT OF NET POSITION
DECEMBER 31, 2014
Governmental Business-type
Activities Activities Total
ASSETS
Cash and temporary investments 23,630,189$ 4,108,435$ 27,738,624$
Cash held with fiscal agent - 455,000 455,000
Receivables
Taxes 193,437 - 193,437
Accrued interest 67,762 - 67,762
Accounts 270,078 1,089,477 1,359,555
Loans 387,279 - 387,279
Special assessments 185,543 209,226 394,769
Internal balances 2,137,624 (2,137,624) -
Due from other governments 173,157 73,822 246,979
Inventories 85,235 35,983 121,218
Prepaid items 16,005 - 16,005
Land held for resale 4,801,815 - 4,801,815
Investment in joint ventures 2,372,241 168,509 2,540,750
Capital assets
Land and construction in progress 7,144,194 3,417,502 10,561,696
Depreciable assets (net of accumulated deprecation)20,025,331 17,197,384 37,222,715
TOTAL ASSETS 61,489,890 24,617,714 86,107,604
LIABILITIES
Accrued salaries payable 377,608 53,959 431,567
Accounts and contracts payable 183,183 414,355 597,538
Due to other governments 103,710 1,223,616 1,327,326
Accrued interest payable 50,423 21,512 71,935
Deposits payable 3,655 - 3,655
Noncurrent liabilities
Due within one year 454,395 201,000 655,395
Due in more than one year 5,200,335 5,692,232 10,892,567
TOTAL LIABILITIES 6,373,309 7,606,674 13,979,983
NET POSITION
Net investment in capital assets 26,305,906 14,757,333 41,063,239
Restricted for
Economic development 5,399,698 - 5,399,698
Debt service 159,161 455,000 614,161
Public safety police expenses 120,464 - 120,464
Ice arena 794 - 794
Unrestricted 23,130,558 1,798,707 24,929,265
TOTAL NET POSITION 55,116,581$ 17,011,040$ 72,127,621$
The notes to the financial statements are an integral part of this statement.
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CITY OF NEW HOPE, MINNESOTA
STATEMENT OF ACTIVITIES
FOR THE YEAR ENDED DECEMBER 31, 2014
Operating Capital
Charges for Grants and Grants and
Expenses Services Contributions Contributions
Governmental activities
General government 1,976,377$ 234,440$ 428,462$ -$
Public safety 6,795,836 1,047,721 262,477 -
Public works 2,467,618 224,790 174,763 31,417
Culture and recreation 2,145,224 617,459 14,606 16,500
Economic development 1,704,010 - 132,750 -
Interest on long-term debt 140,321 - - -
Total governmental activities 15,229,386 2,124,410 1,013,058 47,917
Business-type activities
Sewer utility 1,976,864 2,414,482 - -
Water utility 4,635,686 3,634,873 375,665 11,469
Golf course 304,059 254,508 - -
Ice arena 877,826 775,784 68,819 -
Storm water 558,160 948,537 - -
Street lighting 99,560 123,060 - -
Total business-type activities 8,452,155 8,151,244 444,484 11,469
Total 23,681,541$ 10,275,654$ 1,457,542$ 59,386$
General revenues
Taxes
Property taxes
Tax increments
Franchise taxes
Grants and contributions not restricted to specific programs
Unrestricted investment earnings
Transfers - internal activities
Total general revenues and transfers
Change in net position
Net position, January 1
Net position, December 31
The notes to the financial statements are an integral part of this statement.
Functions/Programs
Program Revenues
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Governmental Business-type
Activities Activities Total
(1,313,475)$ -$ (1,313,475)$
(5,485,638) - (5,485,638)
(2,036,648) - (2,036,648)
(1,496,659) - (1,496,659)
(1,571,260) - (1,571,260)
(140,321) - (140,321)
(12,044,001) - (12,044,001)
- 437,618 437,618
- (613,679) (613,679)
- (49,551) (49,551)
- (33,223) (33,223)
- 390,377 390,377
- 23,500 23,500
- 155,042 155,042
(12,044,001) 155,042 (11,888,959)
9,732,776 - 9,732,776
537,871 - 537,871
438,541 - 438,541
179,537 - 179,537
324,498 31,714 356,212
114,000 (114,000) -
11,327,223 (82,286) 11,244,937
(716,778) 72,756 (644,022)
55,833,359 16,938,284 72,771,643
55,116,581$ 17,011,040$ 72,127,621$
Net (Expenses) Revenues
and Changes in Net Position
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THIS PAGE IS LEFT BLANK
INTENTIONALLY
-34-
FUND FINANCIAL STATEMENTS
CITY OF NEW HOPE
NEW HOPE, MINNESOTA
FOR THE YEAR ENDED
DECEMBER 31, 2014
-35-
CITY OF NEW HOPE, MINNESOTA
BALANCE SHEET
GOVERNMENTAL FUNDS
DECEMBER 31, 2014
9001 9015/9501 9213-9220
Economic
Development HRA
General Authority Construction
ASSETS
Cash and temporary investments 5,763,629$ -$ 4,857,719$
Receivables
Taxes 193,437 - -
Accrued interest 67,762 - -
Accounts 172,496 67,455 -
Loans - 387,279 -
Special assessments 11,140 33,422 -
Due from other governments 158,093 - -
Prepaid items 16,005 - -
Due from other funds - 103,389 -
Advances to other funds - 1,787,794 -
Land held for resale - 2,368,653 2,433,162
TOTAL ASSETS 6,382,562$ 4,747,992$ 7,290,881$
LIABILITIES
Accrued salaries payable 306,048$ 14,180$ -$
Accounts and contracts payable 63,022 14,160 -
Due to other governments 38,440 901 -
Deposits payable 3,655 - -
Due to other funds - 104,356 103,389
Advances from other funds - - 1,787,794
TOTAL LIABILITIES 411,165 133,597 1,891,183
DEFERRED INFLOWS OF RESOURCES
Unavailable revenue - taxes 141,766 - -
Unavailable revenue - special assessments 8,337 33,386 -
TOTAL DEFERRED INFLOWS OF RESOURCES 150,103 33,386 -
FUND BALANCES
Nonspendable 16,005 - -
Restricted - - 5,399,698
Committed - 4,581,009 -
Assigned - - -
Unassigned 5,805,289 - -
TOTAL FUND BALANCES 5,821,294 4,581,009 5,399,698
TOTAL LIABILITIES, DEFERRED INFLOWS
OF RESOURCES, AND FUND BALANCES 6,382,562$ 4,747,992$ 7,290,881$
The notes to the financial statements are an integral part of this statement.
-36-
9203 9242 9117-9119
Other Total
Street Temporary Governmental Governmental
Infrastructure Financing HRA Bonds Funds Funds
3,258,449$ 1,689,658$ -$ 1,996,996$ 17,566,451$
- - - - 193,437
- - - - 67,762
- - - 24,558 264,509
- - - - 387,279
21,290 110,758 - 8,933 185,543
13,500 - - - 171,593
- - - - 16,005
- 239,148 - - 342,537
- 1,100,000 - - 2,887,794
- - - - 4,801,815
3,293,239$ 3,139,564$ -$ 2,030,487$ 26,884,725$
137$ -$ -$ -$ 320,365$
7,760 - - 5,158 90,100
- - - - 39,341
- - - - 3,655
- - 134,792 - 342,537
- - - - 1,787,794
7,897 - 134,792 5,158 2,583,792
- - - - 141,766
21,290 110,607 - - 173,620
21,290 110,607 - - 315,386
- - - - 16,005
- - - 288,251 5,687,949
- - - 190,295 4,771,304
3,264,052 3,028,957 - 1,546,783 7,839,792
- - (134,792) - 5,670,497
3,264,052 3,028,957 (134,792) 2,025,329 23,985,547
3,293,239$ 3,139,564$ -$ 2,030,487$ 26,884,725$
-37-
THIS PAGE IS LEFT BLANK
INTENTIONALLY
-38-
CITY OF NEW HOPE, MINNESOTA
RECONCILIATION OF THE BALANCE SHEET
TO THE STATEMENT OF NET POSITION
GOVERNMENTAL FUNDS
DECEMBER 31, 2014
Total fund balances - governmental funds 23,985,547$
Amounts reported for the governmental activities in the statement of net position 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 35,570,238
Less: accumulated depreciation (12,244,327)
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 (4,880,000)
Plus: unamortized bond premium (49,843)
Internal service funds are used by management to charge certain costs of services to individual funds.
The assets and liabilities are included in the statement of net position.
Internal service fund net position included in governmental activities 9,060,138
Internal balances for internal services used by business-type activities 1,037,624
Some receivables are not available soon enough to pay for the current period's expenditures,
and therefore are reported as unavailable revenue in the funds.
Taxes 141,766
Special assessments 173,620
Governmental funds do not report a liability for accrued interest until due and payable.(50,423)
The City's investment in a joint venture is not a current financial resource and, therefore, is not
reported as an asset in the governmental funds, but is included in the Statement of Net Position.2,372,241
Total net position - governmental activities 55,116,581$
The notes to the financial statements are an integral part of this statement.
-39-
CITY OF NEW HOPE, MINNESOTA
STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES
GOVERNMENTAL FUNDS
FOR THE YEAR ENDED DECEMBER 31, 2014
9001 9015/9501 9213-9221
Economic
Development HRA
General Authority Construction
REVENUES
Taxes
Property taxes 7,928,813$ 150,000$ -$
Tax increments - - 317,055
Franchise taxes 438,541 - -
Licenses and permits 353,973 - -
Intergovernmental 696,731 122,094 -
Charges for services 1,417,064 - -
Fines and forfeitures 213,085 - -
Special assessments 12,763 3,274 -
Investment earnings 24,840 75,657 24,326
Miscellaneous 62,315 10,656 -
TOTAL REVENUES 11,148,125 361,681 341,381
EXPENDITURES
Current
General government 1,660,251 - -
Public safety 6,396,869 - -
Public works 1,009,257 - -
Culture and recreation 1,748,974 - -
Economic development - 298,825 -
Capital outlay
General government 18,748 - -
Public safety 245,610 - -
Public works - - -
Culture and recreation - - -
Economic development - 470,926 109,984
Debt service
Principal - - -
Interest - - -
Bond issuance costs - - -
TOTAL EXPENDITURES 11,079,709 769,751 109,984
EXCESS (DEFICIENCY) OF REVENUES
OVER (UNDER) EXPENDITURES 68,416 (408,070) 231,397
OTHER FINANCING SOURCES (USES)
Transfers in 419,461 - -
Sale of capital assets - 330,383 3,724,999
Principal payments to refunded bond escrow agent - - -
Transfers out (250,000) (30,000) -
TOTAL OTHER FINANCING SOURCES (USES)169,461 300,383 3,724,999
NET CHANGE IN FUND BALANCES 237,877 (107,687) 3,956,396
FUND BALANCES, JANUARY 1 5,583,417 4,326,022 1,443,302
PRIOR PERIOD ADJUSTMENT (NOTE 4G)- 362,674 -
FUND BALANCES, DECEMBER 31 5,821,294$ 4,581,009$ 5,399,698$
The notes to the financial statements are an integral part of this statement.
-40-
9203 9242 9117-9119
Other Total
Street Temporary Governmental Governmental
Infrastructure Financing HRA Bonds Funds Funds
1,182,500$ -$ -$ 457,487$ 9,718,800$
- - 220,816 - 537,871
- - - - 438,541
- - - - 353,973
- - - - 818,825
- - - 245,989 1,663,053
- - - 2,500 215,585
43,687 38,893 - - 98,617
47,915 38,860 17,365 19,050 248,013
13,500 18,540 - 24,969 129,980
1,287,602 96,293 238,181 749,995 14,223,258
- - - 8,223 1,668,474
- - - 991 6,397,860
- - - 216,294 1,225,551
- - - 12,987 1,761,961
- - - - 298,825
- - - - 18,748
- - - - 245,610
1,932,440 - - - 1,932,440
- - - 222,810 222,810
- - - - 580,910
- - 215,000 135,000 350,000
- - 191,427 20,598 212,025
- - 2,200 - 2,200
1,932,440 - 408,627 616,903 14,917,414
(644,838) 96,293 (170,446) 133,092 (694,156)
- - - 250,000 669,461
- - - - 4,055,382
- - (3,780,000) - (3,780,000)
- (197,461) - - (477,461)
- (197,461) (3,780,000) 250,000 467,382
(644,838) (101,168) (3,950,446) 383,092 (226,774)
3,908,890 3,130,125 3,815,654 1,642,237 23,849,647
- - - 362,674
3,264,052$ 3,028,957$ (134,792)$ 2,025,329$ 23,985,547$
-41-
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, 2014
Total net change in fund balances - governmental funds (226,774)$
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 2,380,452
Depreciation expense (1,259,645)
Sale of capital assets (5,361,929)
The City's investment in a joint venture is not a current financial resource and, therefore, is not
reported as an asset in the governmental funds, but is included in the Statement of Net Position.
Contributions to joint venture (182,069)
The issuance of long-term debt provides current financial resources to governmental funds, while the
repayment of principal of long-term debt consumes the current financial resources of governmental
funds. Neither transaction, however, has any effect on net position. Also, governmental funds report
the effect of premiums, discounts and similar items when debt is first issued, whereas these amounts
are deferred and amortized in the statement of activities. The amounts below are the effects of these
differences in the treatment of long-term debt and related items.
Principal repayments 4,130,000
Amortization of bond premium 6,647
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.67,257
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.
Property taxes 13,976
Special assessments (80,700)
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 position of the internal service funds (340,355)
Plus: the change in internal balances for internal services used by business-type activities 136,362
Change in net position - governmental activities (716,778)$
The notes to the financial statements are an integral part of this statement.
-42-
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, 2014
Budgeted Amounts Actual Variance with
Original Final Amounts Final Budget
REVENUES
Taxes
Property taxes 7,927,983$ 7,927,983$ 7,928,813$ 830$
Franchise taxes 464,000 464,000 438,541 (25,459)
Licenses and permits 310,140 310,140 353,973 43,833
Intergovernmental 608,479 608,479 696,731 88,252
Charges for services 1,283,290 1,283,290 1,417,064 133,774
Fines and forfeitures 366,000 366,000 213,085 (152,915)
Special assessments - - 12,763 12,763
Investment earnings 60,000 60,000 24,840 (35,160)
Miscellaneous 20,000 20,000 62,315 42,315
TOTAL REVENUES 11,039,892 11,039,892 11,148,125 108,233
EXPENDITURES
Current
General government 1,687,799 1,687,799 1,660,251 27,548
Public safety 6,598,981 6,598,981 6,396,869 202,112
Public works 1,069,154 1,069,154 1,009,257 59,897
Culture and recreation 1,821,858 1,821,858 1,748,974 72,884
Capital outlay
General government 25,000 25,000 18,748 6,252
Public safety 252,600 252,600 245,610 6,990
Culture and recreation 3,500 3,500 - 3,500
TOTAL EXPENDITURES 11,458,892 11,458,892 11,079,709 379,183
EXCESS (DEFICIENCY) OF REVENUES
OVER (UNDER) EXPENDITURES (419,000) (419,000) 68,416 487,416
OTHER FINANCING SOURCES (USES)
Transfers in 419,000 419,000 419,461 461
Transfers out - - (250,000) (250,000)
TOTAL OTHER FINANCING
SOURCES (USES)419,000 419,000 169,461 (249,539)
NET CHANGE IN FUND BALANCES - - 237,877 237,877
FUND BALANCES, JANUARY 1 5,583,417 5,583,417 5,583,417 -
FUND BALANCES, DECEMBER 31 5,583,417$ 5,583,417$ 5,821,294$ 237,877$
The notes to the financial statements are an integral part of this statement.
-43-
THIS PAGE IS LEFT BLANK
INTENTIONALLY
-44-
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, 2014
Actual Variance with
Original Final Amounts Final Budget
REVENUES
Taxes
Property taxes 150,000$ 150,000$ 150,000$ -$
Intergovernmental - - 122,094 122,094
Special assessments 4,800 4,800 3,274 (1,526)
Investment income 18,000 18,000 75,657 57,657
Miscellaneous 15,000 15,000 10,656 (4,344)
TOTAL REVENUES 187,800 187,800 361,681 173,881
EXPENDITURES
Economic development
Current
Personnel services 225,596 225,596 216,833 8,763
Supplies 150 150 189 (39)
Other services and charges 74,881 74,881 81,803 (6,922)
Capital outlay 50,000 50,000 470,926 (420,926)
TOTAL EXPENDITURES 350,627 350,627 769,751 (419,124)
DEFICIENCY OF REVENUES
UNDER EXPENDITURES (162,827) (162,827) (408,070) (245,243)
OTHER FINANCING SOURCES (USES)
Sale of capital assets - - 330,383 330,383
Transfers out - - (30,000) (30,000)
TOTAL OTHER FINANCING
SOURCES (USES)- - 300,383 300,383
NET CHANGE IN FUND BALANCES (162,827) (162,827) (107,687) 55,140
FUND BALANCES, JANUARY 1 4,326,022 4,326,022 4,326,022 -
PRIOR PERIOD ADJUSTMENT - - 362,674 362,674
FUND BALANCES, DECEMBER 31 4,163,195$ 4,163,195$ 4,581,009$ 417,814$
The notes to the financial statements are an integral part of this statement.
Budgeted Amounts
-45-
CITY OF NEW HOPE, MINNESOTA CITY OF NEW HOPE, MINNESOTA
STATEMENT OF NET POSITION - CONTINUED ON THE FOLLOWING PAGES STATEMENT OF NET POSITION - CONTINUED
PROPRIETARY FUNDS PROPRIETARY FUNDS
DECEMBER 31, 2014 DECEMBER 31, 2014
9300 9301 9302 9303
Sewer Utility Water Utility Golf Course Ice Arena
ASSETS
CURRENT ASSETS
Cash and temporary investments -$ 2,809,569$ 56,224$ 68,103$
Cash held with fiscal agent - - - 455,000
Receivables
Accounts 245,613 667,570 - 74,237
Special assessments 59,188 122,258 - -
Due from other funds - 39,540 - -
Due from other governments - 9,572 - 64,250
Inventories - 26,487 9,496 -
TOTAL CURRENT ASSETS 304,801 3,674,996 65,720 661,590
NONCURRENT ASSETS
Investment in joint ventures - 168,509 - -
Capital assets
Land - - 250,625 -
Buildings and structures - - 973,145 9,641,166
Improvements other than buildings 3,866,181 5,810,656 130,373 -
Vehicles and equipment 293,139 1,392,767 149,758 286,097
Construction in progress 642,512 1,383,287 - 11,870
Less: accumulated depreciation (2,121,859) (2,444,938) (891,316) (3,287,180)
Total capital assets
(net of accumulated depreciation)2,679,973 6,141,772 612,585 6,651,953
TOTAL NONCURRENT ASSETS 2,679,973 6,310,281 612,585 6,651,953
TOTAL ASSETS 2,984,774 9,985,277 678,305 7,313,543
The notes to the financial statements are an integral part of this statement.
Business-type Activities - Enterprise Funds
-46-
CITY OF NEW HOPE, MINNESOTA
STATEMENT OF NET POSITION - CONTINUED
PROPRIETARY FUNDS
DECEMBER 31, 2014
Governmental
Activities -
9304 9305 Internal
Storm Water Street Lighting Totals Service Funds
ASSETS
CURRENT ASSETS
Cash and temporary investments 940,404$ 234,135$ 4,108,435$ 6,063,738$
Cash held with fiscal agent - - 455,000 -
Receivables
Accounts 94,159 7,898 1,089,477 5,569
Special assessments 24,914 2,866 209,226 -
Due from other funds - - 39,540 -
Due from other governments - - 73,822 1,564
Inventories - - 35,983 85,235
TOTAL CURRENT ASSETS 1,059,477 244,899 6,011,483 6,156,106
NONCURRENT ASSETS
Investment in joint ventures - - 168,509 -
Capital assets
Land 234,417 - 485,042 85,647
Buildings and structures - - 10,614,311 3,141,396
Improvements other than buildings 4,110,274 - 13,917,484 -
Vehicles and equipment - - 2,121,761 8,130,155
Construction in progress 894,791 - 2,932,460 -
Less: accumulated depreciation (710,879) - (9,456,172) (7,513,584)
Total capital assets
(net of accumulated depreciation)4,528,603 - 20,614,886 3,843,614
TOTAL NONCURRENT ASSETS 4,528,603 - 20,783,395 3,843,614
TOTAL ASSETS 5,588,080 244,899 26,794,878 9,999,720
The notes to the financial statements are an integral part of this statement.
Business-type Activities - Enterprise Funds
-47-
CITY OF NEW HOPE, MINNESOTA CITY OF NEW HOPE, MINNESOTA
STATEMENT OF NET POSITION - CONTINUED STATEMENT OF NET POSITION - CONTINUED
PROPRIETARY FUNDS PROPRIETARY FUNDS
DECEMBER 31, 2014 DECEMBER 31, 2014
9300 9301 9302 9303
Sewer Utility Water Utility Golf Course Ice Arena
LIABILITIES
CURRENT LIABILITIES
Accrued salaries payable 15,724$ 14,996$ 2,955$ 15,098$
Accounts and contracts payable 105,982 226,216 1,062 30,157
Due to other governments 298 1,202,130 670 20,197
Accrued interest payable - 12,096 - 4,790
Due to other funds 39,540 - - -
Compensated absences payable, current portion - - - -
Bonds and notes payable, current portion - 146,000 - -
TOTAL CURRENT LIABILITIES 161,544 1,601,438 4,687 70,242
NONCURRENT LIABILITIES
Advances from other funds - 1,100,000 - -
Other postemployment benefits payable 10,108 10,652 2,592 8,120
Compensated absences payable - - - -
Bonds and notes payable - 1,747,194 - 3,505,000
TOTAL NONCURRENT LIABILITIES 10,108 2,857,846 2,592 3,513,120
TOTAL LIABILITIES 171,652 4,459,284 7,279 3,583,362
NET POSITION
Net investment in capital assets 2,679,973 4,248,578 612,585 3,146,953
Restricted for debt service - - - 455,000
Unrestricted 133,149 1,277,415 58,441 128,228
TOTAL NET POSITION 2,813,122$ 5,525,993$ 671,026$ 3,730,181$
The notes to the financial statements are an integral part of this statement.
Business-type Activities - Enterprise Funds
-48-
CITY OF NEW HOPE, MINNESOTA
STATEMENT OF NET POSITION - CONTINUED
PROPRIETARY FUNDS
DECEMBER 31, 2014
Governmental
Activities -
9304 9305 Internal
Storm Water Street Lighting Totals Service Funds
LIABILITIES
CURRENT LIABILITIES
Accrued salaries payable 5,186$ -$ 53,959$ 57,243$
Accounts and contracts payable 42,064 8,874 414,355 93,083
Due to other governments 279 42 1,223,616 64,369
Accrued interest payable 4,626 - 21,512 -
Due to other funds - - 39,540 -
Compensated absences payable, current portion - - - 49,395
Bonds and notes payable, current portion 55,000 - 201,000 -
TOTAL CURRENT LIABILITIES 107,155 8,916 1,953,982 264,090
NONCURRENT LIABILITIES
Advances from other funds - - 1,100,000 -
Other postemployment benefits payable 4,207 - 35,679 230,944
Compensated absences payable - - - 444,548
Bonds and notes payable 404,359 - 5,656,553 -
TOTAL NONCURRENT LIABILITIES 408,566 - 6,792,232 675,492
TOTAL LIABILITIES 515,721 8,916 8,746,214 939,582
NET POSITION
Net investment in capital assets 4,069,244 - 14,757,333 3,843,614
Restricted for debt service - - 455,000 -
Unrestricted 1,003,115 235,983 2,836,331 5,216,524
TOTAL NET POSITION 5,072,359$ 235,983$ 18,048,664$ 9,060,138$
Total net position - enterprise funds 18,048,664$
Adjustment to reflect the consolidation of internal service fund
activities related to the enterprise funds (1,037,624)
Net position - business-type activities 17,011,040$
The notes to the financial statements are an integral part of this statement.
Business-type Activities - Enterprise Funds
-49-
CITY OF NEW HOPE, MINNESOTA CITY OF NEW HOPE, MINNESOTA
STATEMENT OF REVENUES, EXPENSES AND STATEMENT OF REVENUES, EXPENSES AND
CHANGES IN NET POSITION CHANGES IN NET POSITION - CONTINUED
PROPRIETARY FUNDS PROPRIETARY FUNDS
FOR THE YEAR ENDED DECEMBER 31, 2014 FOR THE YEAR ENDED DECEMBER 31, 2014
9300 9301 9302 9303
Sewer Utility Water Utility Golf Course Ice Arena
OPERATING REVENUES
Charges for services 2,414,482$ 3,572,291$ 243,497$ 775,784$
Billings to departments - - - -
Other - - - -
TOTAL OPERATING REVENUES 2,414,482 3,572,291 243,497 775,784
OPERATING EXPENSES
Cost of goods sold 1,394,973 2,272,517 24,176 -
Personnel services 259,725 319,380 118,004 267,466
Supplies 10,367 99,759 30,092 21,479
Utilities 9,714 1,094 22,306 251,899
Other services and charges 184,773 1,668,480 69,936 81,447
Depreciation 77,056 192,858 33,708 187,307
TOTAL OPERATING EXPENSES 1,936,608 4,554,088 298,222 809,598
OPERATING INCOME (LOSS)477,874 (981,797) (54,725) (33,814)
NONOPERATING REVENUES (EXPENSES)
Investment earnings 923 14,052 345 4,647
Miscellaneous revenues - 79,464 11,011 68,819
Intergovernmental - 358,783 - -
Interest expense (156) (27,221) - (60,745)
TOTAL NONOPERATING
REVENUES (EXPENSES)767 425,078 11,356 12,721
INCOME (LOSS) BEFORE CONTRIBUTIONS
AND TRANSFERS 478,641 (556,719) (43,369) (21,093)
CAPITAL CONTRIBUTIONS - 11,469 - -
TRANSFERS OUT (46,800) (46,800) - -
CHANGE IN NET POSITION 431,841 (592,050) (43,369) (21,093)
NET POSITION, JANUARY 1 2,381,281 6,118,043 714,395 3,751,274
NET POSITION, DECEMBER 31 2,813,122$ 5,525,993$ 671,026$ 3,730,181$
The notes to the financial statements are an integral part of this statement.
Business-type Activities - Enterprise Funds
-50-
CITY OF NEW HOPE, MINNESOTA
STATEMENT OF REVENUES, EXPENSES AND
CHANGES IN NET POSITION - CONTINUED
PROPRIETARY FUNDS
FOR THE YEAR ENDED DECEMBER 31, 2014
Governmental
Activities -
9304 9305 Internal
Storm Water Street Lighting Totals Service Funds
OPERATING REVENUES
Charges for services 948,537$ 123,060$ 8,077,651$ -$
Billings to departments - - - 2,655,966
Other - - - 165,589
TOTAL OPERATING REVENUES 948,537 123,060 8,077,651 2,821,555
OPERATING EXPENSES
Cost of goods sold - - 3,691,666 -
Personnel services 75,221 - 1,039,796 1,040,972
Supplies 4,411 - 166,108 403,587
Utilities 859 98,016 383,888 85,130
Other services and charges 346,746 1,490 2,352,872 897,074
Depreciation 90,348 - 581,277 733,632
TOTAL OPERATING EXPENSES 517,585 99,506 8,215,607 3,160,395
OPERATING INCOME (LOSS)430,952 23,554 (137,956) (338,840)
NONOPERATING REVENUES (EXPENSES)
Investment earnings 8,949 2,798 31,714 76,485
Miscellaneous revenues - - 159,294 -
Intergovernmental - - 358,783 -
Interest expense (12,064) - (100,186) -
TOTAL NONOPERATING
REVENUES (EXPENSES)(3,115) 2,798 449,605 76,485
INCOME (LOSS) BEFORE CONTRIBUTIONS
AND TRANSFERS 427,837 26,352 311,649 (262,355)
CAPITAL CONTRIBUTIONS - - 11,469 -
TRANSFERS OUT (20,400) - (114,000) (78,000)
CHANGE IN NET POSITION 407,437 26,352 209,118 (340,355)
NET POSITION, JANUARY 1 4,664,922 209,631 17,839,546 9,400,493
NET POSITION, DECEMBER 31 5,072,359$ 235,983$ 18,048,664$ 9,060,138$
Change in net position - enterprise funds 209,118$
Adjustment to reflect the consolidation of internal service fund activities related to
the enterprise funds.(136,362)
Change in net position - business-type activities 72,756$
The notes to the financial statements are an integral part of this statement.
Business-type Activities - Enterprise Funds
-51-
CITY OF NEW HOPE, MINNESOTA CITY OF NEW HOPE, MINNESOTA
STATEMENT OF CASH FLOWS - CONTINUED ON THE FOLLOWING PAGES STATEMENT OF CASH FLOWS - CONTINUED
PROPRIETARY FUNDS PROPRIETARY FUNDS
FOR THE YEAR ENDED DECEMBER 31, 2014 FOR THE YEAR ENDED DECEMBER 31, 2014
9300 9301 9302 9303
Sewer Utility Water Utility Golf Course Ice Arena
CASH FLOWS FROM OPERATING ACTIVITIES
Receipts from customers and users 2,413,851$ 4,594,189$ 243,497$ 730,478$
Receipts from interfund services provided - - - -
Other operating receipts - 79,464 11,011 68,819
Payments to suppliers (1,815,329) (2,741,302) (144,621) (346,158)
Payments to employees (252,424) (322,382) (115,362) (264,717)
NET CASH PROVIDED (USED)
BY OPERATING ACTIVITIES 346,098 1,609,969 (5,475) 188,422
CASH FLOWS FROM NONCAPITAL
FINANCING ACTIVITIES
Transfers out (46,800) (46,800) - -
Increase (decrease) in interfund balance 39,540 (39,540) - -
NET CASH PROVIDED (USED) BY
NONCAPITAL FINANCING ACTIVITIES (7,260) (86,340) - -
CASH FLOWS FROM CAPITAL
AND RELATED FINANCING ACTIVITIES
Acquisition of capital assets (386,131) (141,016) - (60,636)
Payment on account used to finance capital asset acquisitions - (1,000) - -
Receipt of advance from other funds - 1,100,000 - -
Capital contributions - 11,469 - -
Intergovernmental receipts - 358,783 - -
Principal paid on long-term debt (71,050) (197,050) - -
Interest paid on long-term debt (792) (29,290) - (60,745)
NET CASH PROVIDED (USED) BY
CAPITAL AND RELATED
FINANCING ACTIVITIES (457,973) 1,101,896 - (121,381)
CASH FLOWS FROM INVESTING ACTIVITIES
Investment earnings 923 14,052 345 4,647
NET INCREASE (DECREASE)
IN CASH AND CASH EQUIVALENTS (118,212) 2,639,577 (5,130) 71,688
CASH AND CASH EQUIVALENTS, JANUARY 1 118,212 169,992 61,354 451,415
CASH AND CASH EQUIVALENTS, DECEMBER 31 -$ 2,809,569$ 56,224$ 523,103$
RECONCILIATION TO THE PROPRIETARY FUNDS
STATEMENT OF NET POSITION
Cash and temporary investments -$ 2,809,569$ 56,224$ 68,103$
Cash held with fiscal agent - - - 455,000
TOTAL CASH AND CASH EQUIVALENTS -$ 2,809,569$ 56,224$ 523,103$
The notes to the financial statements are an integral part of this statement.
Business-type Activities - Enterprise Funds
-52-
CITY OF NEW HOPE, MINNESOTA
STATEMENT OF CASH FLOWS - CONTINUED
PROPRIETARY FUNDS
FOR THE YEAR ENDED DECEMBER 31, 2014
Governmental
Activities -
9304 9305 Internal
Storm Water Street Lighting Totals Service Funds
CASH FLOWS FROM OPERATING ACTIVITIES
Receipts from customers and users 949,566$ 121,980$ 9,053,561$ -$
Receipts from interfund services provided - - - 2,650,397
Other operating receipts - - 159,294 244,909
Payments to suppliers (323,805) (99,826) (5,471,041) (1,299,255)
Payments to employees (68,479) - (1,023,364) (912,414)
NET CASH PROVIDED (USED)
BY OPERATING ACTIVITIES 557,282 22,154 2,718,450 683,637
CASH FLOWS FROM NONCAPITAL
FINANCING ACTIVITIES
Transfers out (20,400) - (114,000) (78,000)
Increase (decrease) in interfund balance - - - -
NET CASH PROVIDED (USED) BY
NONCAPITAL FINANCING ACTIVITIES (20,400) - (114,000) (78,000)
CASH FLOWS FROM CAPITAL
AND RELATED FINANCING ACTIVITIES
Acquisition of capital assets (173,093) - (760,876) (634,177)
Payment on account used to finance capital asset acquisitions (3,118) - (4,118) -
Receipt of advance from other funds - - 1,100,000 -
Capital contributions - - 11,469 -
Intergovernmental receipts - - 358,783 -
Principal paid on long-term debt (102,900) - (371,000) -
Interest paid on long-term debt (12,858) - (103,685) -
NET CASH PROVIDED (USED) BY
CAPITAL AND RELATED
FINANCING ACTIVITIES (291,969) - 230,573 (634,177)
CASH FLOWS FROM INVESTING ACTIVITIES
Investment earnings 8,949 2,798 31,714 76,485
NET INCREASE (DECREASE)
IN CASH AND CASH EQUIVALENTS 253,862 24,952 2,866,737 47,945
CASH AND CASH EQUIVALENTS, JANUARY 1 686,542 209,183 1,696,698 6,015,793
CASH AND CASH EQUIVALENTS, DECEMBER 31 940,404$ 234,135$ 4,563,435$ 6,063,738$
RECONCILIATION TO THE PROPRIETARY FUNDS
STATEMENT OF NET POSITION
Cash and temporary investments 940,404$ 234,135$ 4,108,435$ 6,063,738$
Cash held with fiscal agent - - 455,000 -
TOTAL CASH AND CASH EQUIVALENTS 940,404$ 234,135$ 4,563,435$ 6,063,738$
The notes to the financial statements are an integral part of this statement.
Business-type Activities - Enterprise Funds
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CITY OF NEW HOPE, MINNESOTA CITY OF NEW HOPE, MINNESOTA
STATEMENT OF CASH FLOWS - CONTINUED STATEMENT OF CASH FLOWS - CONTINUED
PROPRIETARY FUNDS PROPRIETARY FUNDS
FOR THE YEAR ENDED DECEMBER 31, 2014 FOR THE YEAR ENDED DECEMBER 31, 2014
9300 9301 9302 9303
Sewer Utility Water Utility Golf Course Ice Arena
RECONCILIATION OF OPERATING INCOME (LOSS)
TO NET CASH PROVIDED (USED)
BY OPERATING ACTIVITIES
Operating income (loss)477,874$ (981,797)$ (54,725)$ (33,814)$
Adjustments to reconcile operating income (loss)
to net cash provided (used) by operating activities
Depreciation 77,056 192,858 33,708 187,307
Other income related to operations - 79,464 11,011 68,819
(Increase) decrease in assets
Receivables
Accounts 5,748 (43,107) - (28,730)
Special assessments (6,379) (13,047) - -
Due from other governments - 1,078,052 - (16,576)
Inventories - 4,767 2,338 -
Increase (decrease) in liabilities
Accounts and contracts payable (215,800) 189,989 (908) 7,047
Accrued salaries payable 4,193 (5,762) 2,161 318
Due to other governments 298 1,105,792 459 1,620
Compensated absences payable - - - -
Other postemployment benefits payable 3,108 2,760 481 2,431
NET CASH PROVIDED (USED)
BY OPERATING ACTIVITIES 346,098$ 1,609,969$ (5,475)$ 188,422$
SCHEDULE OF NONCASH CAPITAL AND
RELATED FINANCING ACTIVITIES
Amortization of bond discount 67$ 67$ -$ -$
Amortization of bond premium 111$ 162$ -$ -$
Capital assets purchased on account 61,206$ -$ -$ -$
The notes to the financial statements are an integral part of this statement.
Business-type Activities - Enterprise Funds
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CITY OF NEW HOPE, MINNESOTA
STATEMENT OF CASH FLOWS - CONTINUED
PROPRIETARY FUNDS
FOR THE YEAR ENDED DECEMBER 31, 2014
Governmental
Activities -
9304 9305 Internal
Storm Water Street Lighting Totals Service Funds
RECONCILIATION OF OPERATING INCOME (LOSS)
TO NET CASH PROVIDED (USED)
BY OPERATING ACTIVITIES
Operating income (loss)430,952$ 23,554$ (137,956)$ (338,840)$
Adjustments to reconcile operating income (loss)
to net cash provided (used) by operating activities
Depreciation 90,348 - 581,277 733,632
Other income related to operations - - 159,294 -
(Increase) decrease in assets
Receivables
Accounts (494) (1,006) (67,589) (5,569)
Special assessments 1,523 (74) (17,977) -
Due from other governments - - 1,061,476 79,320
Inventories - - 7,105 (10,810)
Increase (decrease) in liabilities
Accounts and contracts payable 27,955 (327) 7,956 57,133
Accrued salaries payable 5,186 - 6,096 37,422
Due to other governments 256 7 1,108,432 40,213
Compensated absences payable - - - 17,591
Other postemployment benefits payable 1,556 - 10,336 73,545
NET CASH PROVIDED (USED)
BY OPERATING ACTIVITIES 557,282$ 22,154$ 2,718,450$ 683,637$
SCHEDULE OF NONCASH CAPITAL AND
RELATED FINANCING ACTIVITIES
Amortization of bond discount 790$ -$ 924$ -$
Amortization of bond premium 726$ -$ 999$ -$
Capital assets purchased on account 3,177$ -$ 64,383$ -$
The notes to the financial statements are an integral part of this statement.
Business-type Activities - Enterprise Funds
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CITY OF NEW HOPE, MINNESOTA
STATEMENT OF FIDUCIARY NET POSITION
AGENCY FUND
DECEMBER 31, 2014
9503
Pass-Through
Grant Fund
ASSETS
10,096$
LIABILITIES
Deposits payable 10,096$
The notes to the financial statements are an integral part of this statement.
Cash and temporary investments
-56-
CITY OF NEW HOPE, MINNESOTA
NOTES TO THE FINANCIAL STATEMENTS
DECEMBER 31, 2014
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 City 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 position 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.
Amounts reported as 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.
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CITY OF NEW HOPE, MINNESOTA
NOTES TO THE FINANCIAL STATEMENTS
DECEMBER 31, 2014
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. The fiduciary fund financial statements has no measurement
focus but utilizes the accrual basis of accounting. Revenues are recorded when earned and expenses are recorded when a
liability is incurred, regardless of the timing of related cash flows. Property taxes 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 City.
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.
Unearned 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 unearned revenue.
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.
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. Activities in
the fund are funded through property tax levies and Federal and state aids and grants.
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 various street projects within the City.
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CITY OF NEW HOPE, MINNESOTA
NOTES TO THE FINANCIAL STATEMENTS
DECEMBER 31, 2014
Note 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - CONTINUED
The Temporary Financing Capital Projects fund is used to account for various capital projects and capital outlay
purchases until permanent financing is acquired.
The HRA Bonds Debt Service fund accounts for revenue from tax increments and interest income to pay for the
principal and interest on the City’s tax increment bond issues.
The City reports the following major enterprise funds:
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.
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 City’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.
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 City’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.
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CITY OF NEW HOPE, MINNESOTA
NOTES TO THE FINANCIAL STATEMENTS
DECEMBER 31, 2014
Note 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - CONTINUED
D. Assets, liabilities, deferred inflows of resources, and net position/fund balance
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. The proprietary funds’ portion in the
government-wide cash and temporary investments pool is considered to be cash and cash equivalent for purposes of the
Statements of Cash Flows.
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. Investments are stated at their estimated fair value. Earnings from such
investments are allocated on the basis of applicable participation by each of the funds. For cash held with fiscal agent,
interest earned on those investments is allocated directly to that fund.
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. Obligation of a school district with an original maturity not exceeding 13 months and (i) rated in the highest
category by a national bond rating service or (ii) enrolled in the credit enhancement program pursuant to statute
section 126C.55.
6. Bankers’ acceptances of United States banks eligible for purchase by the Federal Reserve System.
7. 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.
8. 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.
9. 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.
Property taxes
The City 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.
Delinquent taxes receivable include the past six years’ uncollected taxes. Delinquent taxes have been offset by a deferred
inflow of resources for taxes not received within 60 days after year end in the fund financial statements.
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CITY OF NEW HOPE, MINNESOTA
NOTES TO THE FINANCIAL STATEMENTS
DECEMBER 31, 2014
Note 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - CONTINUED
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 2014. 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 special assessments receivable in governmental funds are completely offset by a deferred inflow of
resources for assessments not received within 60 days after year end. In government-wide financial statements, special
assessments are recognized as revenues in the year for which they are certified. At December 31, 2014, the total
delinquent special assessment receivable balance was $69,964.
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.
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.
Certain cash payment to vendors reflects costs applicable to future accounting periods are recorded as prepaid items in
both government-wide and fund financial statements. Inventory and prepaid items of the governmental funds are
recorded as expenditures when consumed rather than when purchased.
Land held for resale
Land held for resale is valued at the lower of the cost or the market value of the property.
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.
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CITY OF NEW HOPE, MINNESOTA
NOTES TO THE FINANCIAL STATEMENTS
DECEMBER 31, 2014
Note 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - CONTINUED
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.
Land and Construction in Process are non-depreciable assets. Property, plant, and equipment of the City are depreciated
using the straight line method over the following estimated useful lives:
Assets Years
Buildings and structures 15 - 50
Improvements other than buildings 15 - 50
Vehicles and equipment 3 - 20
Deferred inflows of resources
In addition to liabilities, the statement of financial position and fund financial statements will sometimes report a
separate section for deferred inflows of resources. This separate financial statement element, deferred inflows of
resources, represents an acquisition of net position that applies to a future period(s) and so will not be recognized as an
inflow of resources (revenue) until that time. The government has only one type of item, which arises only under a
modified accrual basis of accounting that qualifies for reporting in this category. Accordingly, the item, unavailable
revenue, is reported only in the governmental funds balance sheet. The governmental funds report unavailable revenues
from two sources: taxes and special assessments. These amounts are deferred and recognized as an inflow of resources in
the period that the amounts become available.
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 471.61, 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, 2014. The
Insurance Reserve Internal service fund is typically used to liquidate governmental other postemployment benefits
payable.
-62-
CITY OF NEW HOPE, MINNESOTA
NOTES TO THE FINANCIAL STATEMENTS
DECEMBER 31, 2014
Note 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - CONTINUED
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 position. The recognition of bond premiums and discounts are
delayed and amortized over the life of the bonds using the straight line method. Bonds payable are reported net of the
applicable bond premium or discount. Bond issuance costs are reported as an expense in the period incurred.
In the fund financial statements, governmental fund types 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.
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, which is the City’s highest level of decision-making authority. Committed amounts cannot be
used for any other purpose unless the City 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 City Council itself or by an official to which the governing body delegates the authority. The City Council
has adopted a fund balance policy which delegates the authority to assign amounts for specific purposes to the
Finance Manager or City Manager.
Unassigned - The residual classification for the General fund 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.
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CITY OF NEW HOPE, MINNESOTA
NOTES TO THE FINANCIAL STATEMENTS
DECEMBER 31, 2014
Note 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - CONTINUED
Net position
Net position represents the difference between assets and liabilities. Net position is displayed in three components:
a. Net investment in capital assets - Consists of capital assets, net of accumulated depreciation reduced by any
outstanding debt attributable to acquire capital assets.
b. Restricted net position - Consist of net position balances restricted when there are limitations imposed on their
use through external restrictions imposed by creditors, grantors, laws or regulations of other governments.
c. Unrestricted net position - All other net position that do not meet the definition of “restricted” or “net
investment in capital assets”.
When both restricted and unrestricted resources are available for use, it is the City’s policy to use restricted resources
first, then unrestricted resources as they are needed.
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. The budget was not amended
during the current year. 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. Solid Waste Management
ii. 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 Police Forfeitures or Ice Arena Endowment special
revenue funds.
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CITY OF NEW HOPE, MINNESOTA
NOTES TO THE FINANCIAL STATEMENTS
DECEMBER 31, 2014
Note 2: STEWARDSHIP, COMPLIANCE AND ACCOUNTABILITY - CONTINUED
B. Excess of expenditures over appropriations
For the year ended December 31, 2014, expenditures exceeded appropriations in the Economic Development Authority
fund by $419,124. This excess was partially funded by revenues received more than anticipated and sale of capital assets.
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 City 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 $3,642,976 and the bank balance was $4,359,099. At
December 31, 2014, 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.
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CITY OF NEW HOPE, MINNESOTA
NOTES TO THE FINANCIAL STATEMENTS
DECEMBER 31, 2014
Note 3: DETAILED NOTES ON ALL FUNDS - CONTINUED
Investments
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 60 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, excluding U.S. guaranteed investments (such as treasuries),
investment pools, and mutual funds. The City’s investment policy does not limit the concentration of
investments. As of December 31, 2014, the City had invested 5 percent or more of its total investment portfolio
in the following issuers: New York City Transitional Finance Authority - 11 percent, Federal National
Mortgage Association - 8 percent, Federal Home Loan Mortgage Corporation - 6 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.
As of December 31, 2014, 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:
Credit Segmented Fair Value
Quality/Time and Carrying
Ratings (1)Distribution (2)Amount
Pooled investments
Broker Money Market Funds AAA Less than 6 months 1,702,943$
Broker Money Market Funds AA Less than 6 months 455,000
Non-pooled investments
Negotiable Certificates of Deposit N/A Less than 6 months 245,012
Negotiable Certificates of Deposit N/A 6 months to 1 year 1,800,536
Negotiable Certificates of Deposit N/A 1 to 3 years 8,501,962
Negotiable Certificates of Deposit N/A More than 3 years 1,786,764
U.S. Government Agency Securities AA+Less than 6 months 750,735
U.S. Government Agency Securities AA+1 to 3 years 1,865,729
U.S. Government Agency Securities AA+More than 3 years 1,986,300
U.S. Government Agency Securities Aa2 More than 3 years 4,090
State and Local Government Securities AA+Less than 6 months 478,800
State and Local Government Securities AA-6 months to 1 year 508,880
State and Local Government Securities AAA 1 to 3 years 3,205,653
State and Local Government Securities A 1 to 3 years 746,565
State and Local Government Securities A More than 3 years 518,825
Total investments 24,557,794$
Types of Investments
(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.
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CITY OF NEW HOPE, MINNESOTA
NOTES TO THE FINANCIAL STATEMENTS
DECEMBER 31, 2014
Note 3: DETAILED NOTES ON ALL FUNDS - CONTINUED
A reconciliation of cash and temporary investments as reported on the statement of net position follows:
Carrying amount of deposits 3,642,976$
Investments 24,557,794
Petty cash 2,950
Total 28,203,720$
Statement of Net Position
Cash and temporary investments 27,738,624$
Cash held with fiscal agent 455,000
Statement of Fiduciary Net Assets
Cash and temporary investments 10,096
Total 28,203,720$
B. Receivables
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, 2014 totaled $387,279.
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CITY OF NEW HOPE, MINNESOTA
NOTES TO THE FINANCIAL STATEMENTS
DECEMBER 31, 2014
Note 3: DETAILED NOTES ON ALL FUNDS - CONTINUED
C. Capital assets
Capital asset activity for the year ended December 31, 2014 was as follows:
Beginning Ending
Balance Increases Decreases Balance
Governmental activities
Capital assets not being depreciated
Land 994,268$ -$ -$ 994,268$
Construction in progress 9,269,696 2,645,308 (5,765,078) 6,149,926
Total capital assets not
being depreciated 10,263,964 2,645,308 (5,765,078) 7,144,194
Capital assets, being depreciated
Buildings and structures 9,262,477 88,478 - 9,350,955
Vehicles and equipment 8,826,805 545,698 (75,371) 9,297,132
Improvements other than buildings 21,041,896 138,294 (45,035) 21,135,155
Total capital assets
being depreciated 39,131,178 772,470 (120,406) 39,783,242
Less accumulated depreciation for
Buildings and structures (5,378,885) (252,714) - (5,631,599)
Vehicles and equipment (5,958,208) (687,591) 75,371 (6,570,428)
Improvements other than buildings (6,547,947) (1,052,972) 45,035 (7,555,884)
Total accumulated depreciation (17,885,040) (1,993,277) 120,406 (19,757,911)
Total capital assets
being depreciated, net 21,246,138 (1,220,807) - 20,025,331
Governmental activities
capital assets, net 31,510,102$ 1,424,501$ (5,765,078)$ 27,169,525$
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CITY OF NEW HOPE, MINNESOTA
NOTES TO THE FINANCIAL STATEMENTS
DECEMBER 31, 2014
Note 3: DETAILED NOTES ON ALL FUNDS - CONTINUED
Beginning Ending
Balance Increases Decreases Balance
Business-type Activities
Capital assets not being depreciated
Land 485,042$ -$ -$ 485,042$
Construction in progress 2,182,437 802,448 (52,425) 2,932,460
Total capital assets
not being depreciated 2,667,479 802,448 (52,425) 3,417,502
Capital assets being depreciated
Buildings and structures 10,614,311 - - 10,614,311
Improvements other than buildings 13,891,014 26,470 - 13,917,484
Vehicles and equipment 2,072,995 48,766 - 2,121,761
Total capital assets
being depreciated 26,578,320 75,236 - 26,653,556
Less accumulated depreciation for
Buildings and structures (3,506,668) (203,306) - (3,709,974)
Improvements other than buildings (3,822,665) (279,419) - (4,102,084)
Vehicles and equipment (1,545,562) (98,552) - (1,644,114)
Total accumulated
depreciation (8,874,895) (581,277) - (9,456,172)
Total capital assets
being depreciated, net 17,703,425 (506,041) - 17,197,384
Business-type activities
capital assets, net 20,370,904$ 296,407$ (52,425)$ 20,614,886$
Depreciation expense was charged to functions/programs of the City as follows:
Governmental activities
General government 106,025$
Public safety 58,473
Public works 750,311
Culture and recreation 344,836
Internal service 733,632
Total depreciation expense - governmental activities 1,993,277$
Business-type activities
Sewer utility 77,056$
Water utility 192,858
Golf course 33,708
Ice arena 187,307
Storm water 90,348
Total depreciation expense - business-type activities 581,277$
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CITY OF NEW HOPE, MINNESOTA
NOTES TO THE FINANCIAL STATEMENTS
DECEMBER 31, 2014
Note 3: DETAILED NOTES ON ALL FUNDS - CONTINUED
Construction commitments
The City has active construction projects as of December 31, 2014. At year-end, the City’s commitments with the
contractors are as follows:
Spent Remaining
to date Commitment
2011 Street Infrastructure 61,234$ 22,930$
2013 Street Infrastructure 5,530,817 447,243
Xylon Sanitary Sewer Lining 267,706 22,019
Fire Station Parking Lot Replacement 167,461 12,597
2014 Sanitary Sewer Lining 31,798 142,552
Total 6,059,016$ 647,341$
Project
D. Interfund receivables, payables, and transfers
The composition of internal balances as of December 31, 2014 is as follows:
Purpose Amount
Due from/to other funds
Governmental Governmental
Economic Development Authority HRA Construction Finance capital purchase 103,389$
Temporary Financing Economic Development Authority Cash flow 104,356
Temporary Financing HRA Bonds Cash flow 134,792
Business-type Business-type
Water Utility Sewer Utility Cash flow 39,540
Total due from/to other funds 382,077
Advances to/from other funds
Governmental Governmental
Economic Development Authority HRA Construction Finance capital purchase 1,787,794$
Governmental Business-type
Temporary Financing Water Utility Construction financing 1,100,000
Total advances to/from other funds 2,887,794
Interfund activity eliminated from government-wide statements (2,169,871)
Internal service fund activities related to the enterprise funds 1,037,624
Total internal balances - government-wide statements 2,137,624$
Payable FundReceivable Fund
The Economic Development Authority fund loaned the HRA Construction fund $2,433,162 in 2008 for the purchase of
land at Bass Lake Road. The interfund loan matures in 2028 and carries an interest rate of four percent. As of
December 31, 2014, the balance outstanding was $1,787,794. In 2014, the Temporary Financing fund loaned the Water
Utility fund $1,100,000 to finance the emergency water supply system project. The loan will be paid back over a 10 year
period with a 1.51 percent interest rate.
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CITY OF NEW HOPE, MINNESOTA
NOTES TO THE FINANCIAL STATEMENTS
DECEMBER 31, 2014
Note 3: DETAILED NOTES ON ALL FUNDS - CONTINUED
Interfund transfers at December 31, 2014 are as follows:
Nonmajor
General Governmental
Fund Funds Total
Transfer out
General -$ 250,000$ 250,000$
Economic Development Authority 30,000 - 30,000
Temporary Financing 197,461 - 197,461
Sewer Utility enterprise 46,800 - 46,800
Water Utility enterprise 46,800 - 46,800
Storm Water enterprise 20,400 - 20,400
Internal Service 78,000 - 78,000
Total transfers 419,461$ 250,000$ 669,461$
Fund
Transfer in
• The General fund transferred $250,000 to the nonmajor governmental funds to fund the Fire and City Hall CIP
funds.
• Transfers were made out of the Economic Development Authority fund, Sewer Utility enterprise fund, Water
Utility enterprise fund, Storm Water enterprise fund, and Internal Service fund for $30,000, $46,800, $46,800,
$20,400, and $78,000, respectively, to the General fund to cover administrative charges paid for by the General
fund.
• Temporary financing transferred $197,461 to reimburse the General fund for capital outlay.
E. Long-term debt
General obligation (G.O.) bonds
The City issues G.O. bonds to provide funds for the acquisition and construction of major capital facilities. G.O. bonds
have been issued for both governmental and business-type activities. These bonds are reported in the proprietary funds if
they are expected to be repaid from proprietary fund revenues. In addition, G.O. bonds have been issued to refund G.O.
tax increment bonds and G.O. revenue bonds.
The following G.O. bonds will be repaid from future tax levies.
Authorized Issue Maturity Balance at
and Issued Date Date Year End
2010B G.O. Certificates of
Indebtedness 1,245,000$ 2.00 - 2.60 %11/23/10 02/01/20 855,000$
Interest
RateDescription
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CITY OF NEW HOPE, MINNESOTA
NOTES TO THE FINANCIAL STATEMENTS
DECEMBER 31, 2014
Note 3: DETAILED NOTES ON ALL FUNDS - CONTINUED
The annual debt service to maturity for G.O. bonds are as follows:
Year Ending
December 31,Principal Interest Total
2015 135,000$ 17,447$ 152,447$
2016 140,000 14,698 154,698
2017 140,000 11,897 151,897
2018 145,000 8,939 153,939
2019 145,000 5,640 150,640
2020 150,000 1,950 151,950
Total 855,000$ 60,571$ 915,571$
Governmental Activities
G.O. tax increment bonds
The following bonds were issued for development purposes. The additional tax increment resulting from the increased
tax capacity of the redeveloped properties has been pledged to retire the related debt. Tax increment revenues are
projected to produce over 55 percent of the debt service requirements over the life of the bonds. For the current year,
principal and interest paid and total related tax increment revenues were $3,995,000 and $190,531, respectively.
Advance refunding
On January 1, 2012 the City issued $2,695,000 of G.O. Tax Increment Refunding Bonds, Series 2012A (2012A bonds)
and $1,330,000 G.O. Taxable Tax Increment Refunding Bonds, Series 2012B (2012B bonds). The 2012A bonds bear an
average coupon rate of 2.13 percent and were used to call $2,585,000 of the outstanding principal of the G.O. Tax
Improvement Bonds of 2004 on February 1, 2014. The 2012B Bonds bear an average coupon rate of 3.83 percent and
were used to call $1,195,000 of the outstanding principal of the G.O. Tax Improvement Bonds of 2005 on
February 1, 2014. As a result of the refunding issued, the City will save a total of $271,601 in debt service payments and
will achieve an economic gain (the present value of the difference between the old and the new debt service) of
$219,655.
Authorized Issue Maturity Balance at
and Issued Date Date Year End
G.O. Tax Increment Refunding
Bonds, Series, 2012A 2,695,000 2.00 - 2.45 01/11/12 02/01/25 2,695,000
G.O. Taxable Tax Increment
Refunding Bonds, Series, 2012B 1,330,000 1.35 - 4.65 01/11/12 02/01/31 1,330,000
Total G.O. tax increment bonds 4,025,000$
Rate
Interest
Description
The annual debt service to maturity for G.O. tax increment bonds are as follows:
Year Ending
December 31,Principal Interest Total
2015 270,000$ 99,696$ 369,696$
2016 275,000 94,588 369,588
2017 275,000 89,288 364,288
2018 290,000 83,716 373,716
2019 295,000 77,770 372,770
2020-2024 1,655,000 283,993 1,938,993
2025-2029 770,000 101,553 871,553
2030-2031 195,000 8,951 203,951
Total 4,025,000$ 839,554$ 4,864,554$
Governmental Activities
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CITY OF NEW HOPE, MINNESOTA
NOTES TO THE FINANCIAL STATEMENTS
DECEMBER 31, 2014
Note 3: DETAILED NOTES ON ALL FUNDS - CONTINUED
Lease revenue bonds
The following bonds were issued to finance the Energy Conservation project and will be repaid primarily with energy
savings and revenues pledged from the Ice Arena fund. Annual principal and interest payments on the bonds are
expected to require less than 8 percent of revenues from the Ice Arena fund. Principal and interest paid for the current
year and total customer revenues for the Ice Arena fund were $60,745 and 775,784, respectively.
Authorized Issue Maturity Balance at
and Issued Date Date Year End
2011A Taxable Lease
Revenue Bonds 3,505,000$ 5.00 %12/01/11 12/01/28 3,505,000$
Interest
RateDescription
The annual debt service to maturity for all lease revenue bonds are as follows:
Year Ending
December 31,Principal Interest Total
2015 -$ 57,482$ 57,482$
2016 - 57,482 57,482
2017 - 57,482 57,482
2018 - 57,482 57,482
2019 - 57,482 57,482
2020-2024 - 287,410 287,410
2025-2028 3,505,000 229,928 3,734,928
Total 3,505,000$ 804,748$ 4,309,748$
Business-type Activities
G.O. revenue bonds and notes
The following bonds and notes were issued to finance capital improvements in the enterprise funds. They will be repaid
from future revenues pledged from the Sewer Utility, Water Utility, and Storm Water funds and are backed by the taxing
power of the City. Annual principal and interest payments on the bonds are expected to require less than 3, 6, and
12 percent of revenues from the Sewer Utility, Water Utility, and Storm Water funds, respectively. Principal and interest
paid for the current year and total customer revenues for the Sewer Utility fund were $71,842 and $2,414,482,
respectively. Principal and interest paid for the current year and total customer revenues for the Water Utility fund were
$226,340 and $3,572,291, respectively. Principal and interest paid for the current year and total customer revenues for
the Storm Water fund were $115,758 and $948,537, respectively.
Authorized Issue Maturity Balance at
and Issued Date Date Year End
2010A G.O. Utility Revenue
Bonds 1,200,000$ 2.00 - 3.25 %05/06/10 02/01/21 555,000$
2010B G.O. Water Revenue
Refunding Bonds 605,000 2.00 - 3.00 11/23/10 02/01/22 460,000
2011 G.O. Public Facilities
Authority Note 411,738 1.70 02/23/11 08/20/29 335,000
2013 G.O. Public Facilities
Authority Note 1,035,000 1.00 07/24/13 08/20/32 1,003,000
Total G.O. revenue bonds and notes 2,353,000$
Rate
Interest
Description
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CITY OF NEW HOPE, MINNESOTA
NOTES TO THE FINANCIAL STATEMENTS
DECEMBER 31, 2014
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,Principal Interest Total
2015 201,000$ 41,193$ 242,193$
2016 202,000 37,601 239,601
2017 202,000 33,766 235,766
2018 209,000 29,580 238,580
2019 214,000 24,941 238,941
2020-2024 736,000 61,561 797,561
2025-2029 409,000 23,977 432,977
2030-2032 180,000 3,620 183,620
Total 2,353,000$ 256,238$ 2,609,238$
Business-type Activities
Changes in long-term liabilities
Long-term liability activity for the year ended December 31, 2014, was as follows:
Beginning Ending Due Within
Balance Increases Decreases Balance One Year
Governmental activities
Bonds payable
G.O. bonds and certificates 990,000$ -$ (135,000)$ 855,000$ 135,000$
G.O. tax increment bonds 8,020,000 - (3,995,000) 4,025,000 270,000
Add: premiums on bonds 56,490 - (6,647) 49,843 -
Total bonds payable, net 9,066,490 - (4,136,647) 4,929,843 405,000
Compensated absences payable 476,352 144,040 (126,449) 493,943 49,395
Other postemployment
benefits payable 157,399 114,374 (40,829) 230,944 -
Governmental activity
long-term liabilities 9,700,241$ 258,414$ (4,303,925)$ 5,654,730$ 454,395$
Business-type activities
Bonds payable
G.O. revenue bonds 2,724,000$ -$ (371,000)$ 2,353,000$ 201,000$
Lease revenue bonds 3,505,000 - - 3,505,000 -
Add: premiums on bonds 5,055 - (999) 4,056 -
Less: bond discount (5,427) - 924 (4,503) -
Total bonds payable, net 6,228,628 - (371,075) 5,857,553 201,000
Other postemployment
benefits payable 25,343 18,416 (8,080) 35,679 -
Business-type activity
long-term liabilities 6,253,971$ 18,416$ (379,155)$ 5,893,232$ 201,000$
Internal service funds predominantly serve the governmental funds. Accordingly, long-term liabilities for internal service
funds are included as part of the above totals for governmental activities.
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CITY OF NEW HOPE, MINNESOTA
NOTES TO THE FINANCIAL STATEMENTS
DECEMBER 31, 2014
Note 3: DETAILED NOTES ON ALL FUNDS - CONTINUED
F. Components of fund balance
At December 31, 2014, 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:
Economic Other
Development HRA Street Temporary Governmental
General Authority Construction Infrastructure Financing Funds Total
Nonspendable
Prepaid items 16,005$ -$ -$ -$ -$ -$ 16,005$
Restricted for
Economic development -$ -$ 5,399,698$ -$ -$ -$ 5,399,698 $
Debt service - - - - - 166,993 166,993
Public safety
Police expenditures - - - - - 120,464 120,464
Ice arena - - - - - 794 794
Total restricted -$ -$ 5,399,698$ -$ -$ 288,251$ 5,687,949 $
Committed to
Operations -$ -$ -$ -$ -$ 190,295$ 190,295$
Economic development - 4,581,009 - - - - 4,581,009
Total committed -$ 4,581,009$ -$ -$ -$ 190,295$ 4,771,304 $
Assigned to
Street improvements -$ -$ -$ 3,264,052$ -$ -$ 3,264,052 $
General improvements - - - - 3,028,957 - 3,028,957
Capital equipment - - - - - 150,277 150,277
City hall improvements - - - - - 296,108 296,108
Park improvements - - - - - 1,100,398 1,100,398
Total assigned -$ -$ -$ 3,264,052$ 3,028,957$ 1,546,783$ 7,839,792 $
Purpose
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 five 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.
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CITY OF NEW HOPE, MINNESOTA
NOTES TO THE FINANCIAL STATEMENTS
DECEMBER 31, 2014
Note 4: OTHER INFORMATION - CONTINUED
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. GERF members hired prior to July1, 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 the age for unreduced Social Security benefits capped at 66 for Coordinated members hire 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.
2. Funding policy
Minnesota 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 2014. PEPFF
members were required to contribute 10.2 percent of their annual covered salary in 2014. 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 15.3 percent for PEPFF members. The City’s contributions
to GERF for the years ending December 31, 2014, 2013 and 2012 were $255,968, $251,438, and $254,832,
respectively. The City’s contributions to PEPFF for the years ending December 31, 2014, 2013 and 2012 were
$384,964, $339,138, and $320,482, respectively. The City’s contributions were equal to the contractually required
contributions for each year as set by Minnesota statute.
The contribution rates for PERA's Defined Contribution Plan for City Managers/Administrators will be 6.5 percent
of salary for members and 6.5 percent for employers effective with the first paid date in 2015. The Coordinated Plan
contribution rates for 2015 are 6.5 percent for members and 6.5 percent for employers with an additional 1 percent
for employers, bringing the employer total to 7.5 percent. All Coordinated Plan rate increases are effective the first
paid date on or after Jan. 1, 2015. The Police & Fire Plan rates will increase to 10.8 percent and 16.2 percent as
dictated by 2013 legislation. The contribution rates for all other PERA retirement plans will remain unchanged from
2014.
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CITY OF NEW HOPE, MINNESOTA
NOTES TO THE FINANCIAL STATEMENTS
DECEMBER 31, 2014
Note 4: OTHER INFORMATION - CONTINUED
3. Defined contribution plan
Elected officials of the City of New Hope are covered by the Public Employees Defined Contribution Plan
(PEDCP), a multiple-employer deferred compensation plan administered by the Public Employees Retirement
Association of Minnesota (PERA). The PEDCP is a tax qualified plan under section 401(a) of the Internal Revenue
Code and all contributions by or on behalf of employees are tax deferred until time of withdrawal.
Plan benefits depend solely on amounts contributed to the plan plus investment earnings, less administrative
expenses. Minnesota statutes, chapter 353D.03, specify the employee and employer contribution rates for those
qualified personnel who elect to participate. An eligible elected official who decides to participate contributes
5 percent of salary which is matched by the elected official’s employer. Employer and employee contributions are
combined and used to purchase shares in one or more of the seven accounts of the Minnesota Supplemental
Investment Fund. For administering the plan, PERA receives 2 percent of employer contributions and twenty-five
hundredths of one percent of the assets in each member’s account annually.
The City’s contributions to the PEDCP for the years ended December 31, 2014, 2013 and 2012 were $2,342, $2,197
and $2,087, respectively. The City’s contributions were equal to the contractually required contributions for each
year as set by Minnesota statutes.
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 70 active participants and 8 retired
participants. Benefit provisions are discussed and proposed by an insurance committee made up of employees from
all employee groups (both represented and non-union), with the final approval of the plan being given by the City
Manager. The benefit levels, employee contributions, and employer contributions are governed by the City and can
be amended by the City. The Retiree Health Plan does not issue a publicly available financial report.
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 2014, the City contributed $48,909 to the plan.
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CITY OF NEW HOPE, MINNESOTA
NOTES TO THE FINANCIAL STATEMENTS
DECEMBER 31, 2014
Note 4: OTHER INFORMATION - CONTINUED
3. Annual other postemployment benefit cost and net other postemployment benefit obligation
The City’s annual other postemployment benefit (OPEB) cost (expense) is calculated based on the annual required
contribution of the employer (ARC). The City has elected to calculate the ARC and related information using the
alternative measurement method permitted by GASB Statement No. 45 for employers in plans with fewer than one
hundred total plan members. The ARC represents a level of funding that, if paid on an ongoing basis, is projected to
cover normal cost each year and to amortize any unfunded actuarial liabilities (or funding excess) over a period not
to exceed thirty years. The following table shows the components of the City’s annual OPEB cost for the year, the
amount actually contributed to the plan, and changes in the City’s net OPEB obligation:
Annual required contribution 133,480$
Interest on net OPEB obligation 6,396
Adjustment to annual required contribution (7,086)
Annual OPEB cost (expense)132,790
Contributions made (48,909)
Increase in net OPEB obligation 83,881
Net OPEB obligation - January 1, 2014 182,742
Net OPEB obligation - December 31, 2014 266,623$
The City’s annual OPEB cost, the percentage of annual OPEB cost contributed to the plan, and the net OPEB
obligation for fiscal year 2014 and the preceding two fiscal years are as follows:
Year Annual Net OPEB
Ending OPEB Cost Obligation
12/31/14 132,790$ 36.8 %266,623$
12/31/13 99,524 47.9 182,742
12/31/12 99,453 52.1 130,996
Three Year Trend Information
Percentage
Annual OPEB
Contributed
4. Funded status and funding progress
As of January 1, 2014, the actuarial accrued liability for benefits was $974,843, all of which was unfunded. The
covered payroll (annual payroll of active employees covered by the plan) was $4,810,392, and the ratio of the
unfunded actuarial accrued liability to the covered payroll was 20.3 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.
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.
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CITY OF NEW HOPE, MINNESOTA
NOTES TO THE FINANCIAL STATEMENTS
DECEMBER 31, 2014
Note 4: OTHER INFORMATION - CONTINUED
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
2010 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 2014 and 2015 along with projections of the Office of the Actuary at the Centers for
Medicare & Medicaid Services. A rate increase of 12.9 percent initially in 2014, followed by a 13.1 percent
increase in 2015, to an ultimate average rate increase of 5.6 percent after six years, was used.
Health insurance premiums - 2013, 2014, and 2015 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 2.5 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
2013 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, 2014 was thirty years.
C. Contingencies
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.
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CITY OF NEW HOPE, MINNESOTA
NOTES TO THE FINANCIAL STATEMENTS
DECEMBER 31, 2014
Note 4: OTHER INFORMATION - CONTINUED
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, 2014, 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, 2014 is undetermined.
F. 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. Each member city is entitled to
appoint one member to the JWC board. 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 asset recorded in the
Water fund as an investment in the JWC for $168,509 represents the original contributions for working capital; however,
the City’s share of subsequent construction costs are not determinable. Therefore, the City's Water enterprise fund has
not recorded any subsequent amounts as an equity investment or contributed capital related to the JWC.
The following financial information is taken from the JWC’s audited financial statements for the year ended
December 31, 2014:
Total assets $10,023,890
Total liabilities $815,943
Total net position $9,207,947
Total revenue $11,729,035
Total expenses $6,599,033
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CITY OF NEW HOPE, MINNESOTA
NOTES TO THE FINANCIAL STATEMENTS
DECEMBER 31, 2014
Note 4: OTHER INFORMATION - CONTINUED
Of the total revenues, $11,601,614 represented assessments paid by member cities. The City’s share of JWC’s total
member assessments for the year ended December 31, 2014 was $3,472,517 or 29.93 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 City Council member from each City. As required by the agreement, the City transferred fire
department equipment to the District while retaining its rights to these assets in the event of the District’s dissolution.
The equipment had a net book value of $374,558.
The following financial information is taken from the District’s audited financial statements for the year ended
December 31, 2013, the most recent information available at the date of this report:
Total assets $5,230,317
Total liabilities $389,008
Total net position $4,841,309
Total revenue $1,970,078
Total expenses $2,341,646
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, 2014,
the amount reported as investment in joint venture was $2,372,241.
According to a formula in the agreement, the City’s share of the District’s budget is 49.7 percent. Payments to the
District in 2014 totaled $994,981. The District’s financial statements for the period ended December 31, 2014 are
available at the District office located at: 4251 Xylon Avenue North, New Hope, Minnesota 55428.
Jointly controlled organizations
1. 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, 2014 was $25,273, representing 7.9 percent of members’
contributions for the year.
2. 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 $16,236 for these services in 2014.
3. 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 2014, total
charges of $215,460 were incurred for these services.
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CITY OF NEW HOPE, MINNESOTA
NOTES TO THE FINANCIAL STATEMENTS
DECEMBER 31, 2014
Note 4: OTHER INFORMATION - CONTINUED
4. 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. Each member city is entitled to
appoint one representative to BCWMC board. The nine-member board develops a budget for the year each July
1. Each member City contributes funds to cover the budgeted costs of operations based half on the assessed
valuation of all taxable property, and half on the total area each member city has within the boundaries of the
watershed. Any capital costs incurred by the BCWMC are apportioned to the members based half on the real
property valuation of each member city within the watershed, and half on the total area each member city has
within the boundaries of the watershed. The City’s 2014 contribution to the BCWMC for its fiscal year ended
December 31, 2014 was $27,648, representing 5.4 percent of member’s contributions for the year.
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 2014, the City incurred charges of
$267,900 for application support, systems development, Internet access, and network support services.
G. Prior period adjustment
A prior period adjustment was recorded to recognize deferred inflow of resources previously presented in the
Economic Development Authority fund as unavailable revenue. The loans receivable are now offset with a
committed fund balance.
H. Subsequent event
In July of 2015, the City plans to issue $6,080,000 of General Obligation Tax Increment bonds to finance the Xylon
and 45th Avenue street and utility improvement project. The net interest cost is expected to be approximately
2.9 percent and will mature on February 1, 2032.
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REQUIRED SUPPLEMENTARY INFORMATION
CITY OF NEW HOPE
NEW HOPE, MINNESOTA
FOR THE YEAR ENDED
DECEMBER 31, 2014
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CITY OF NEW HOPE, MINNESOTA
REQUIRED SUPPLEMENTARY INFORMATION
DECEMBER 31, 2014
Schedule of funding progress for the postemployment benefit plan
Unfunded
Actuarial
Actuarial Actuarial Actuarial Accrued
Valuation Value of Accrued Liability Covered
Date Assets Liability (UAAL)Payroll
01/01/14 -$ 974,843$ 974,843$ - %4,810,392$ 20.3 %
01/01/11 - 1,001,568 1,001,568 - 4,266,321 23.5
12/31/08 - 187,037 187,037 - 6,256,409 3.0
Funded
Ratio
UAAL as a
Percentage
of Covered
Payroll
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COMBINING AND INDIVIDUAL FUND
FINANCIAL STATEMENTS AND SCHEDULES
CITY OF NEW HOPE
NEW HOPE, MINNESOTA
FOR THE YEAR ENDED
DECEMBER 31, 2014
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CITY OF NEW HOPE, MINNESOTA
NONMAJOR GOVERNMENTAL FUNDS
COMBINING BALANCE SHEET
DECEMBER 31, 2014
Total
Nonmajor
Special Debt Capital Governmental
Revenue Service Projects Funds
ASSETS
Cash and temporary investments 278,062$ 166,993$ 1,551,941$ 1,996,996$
Receivables
Accounts 24,558 - - 24,558
Special assessments 8,933 - - 8,933
TOTAL ASSETS 311,553$ 166,993$ 1,551,941$ 2,030,487$
LIABILITIES
Accounts and contracts payable -$ -$ 5,158$ 5,158$
FUND BALANCES
Restricted for
Debt service - 166,993 - 166,993
Public safety police expenditures 120,464 - - 120,464
Ice arena 794 - - 794
Committed to operations 190,295 - - 190,295
Assigned to
Capital equipment - - 150,277 150,277
City hall improvements - - 296,108 296,108
Park improvements - - 1,100,398 1,100,398
TOTAL FUND BALANCES 311,553 166,993 1,546,783 2,025,329
TOTAL LIABILITIES AND
FUND BALANCES 311,553$ 166,993$ 1,551,941$ 2,030,487$
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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, 2014
Total
Nonmajor
Special Debt Capital Governmental
Revenue Service Projects Funds
REVENUES
Taxes
Property taxes -$ 161,487$ 296,000$ 457,487$
Charges for services 219,658 - 26,331 245,989
Fines and forfeitures 2,500 - - 2,500
Investment earnings 3,534 323 15,193 19,050
Miscellaneous - - 24,969 24,969
TOTAL REVENUES 225,692 161,810 362,493 749,995
EXPENDITURES
Current
General government - - 8,223 8,223
Public safety 991 - - 991
Public works 216,294 - - 216,294
Culture and recreation 12,987 - - 12,987
Capital outlay
Culture and recreation - - 222,810 222,810
Debt service
Principal - 135,000 - 135,000
Interest - 20,598 - 20,598
TOTAL EXPENDITURES 230,272 155,598 231,033 616,903
EXCESS (DEFICIENCY) OF REVENUES
OVER (UNDER) EXPENDITURES (4,580) 6,212 131,460 133,092
OTHER FINANCING SOURCES
Transfers in - - 250,000 250,000
NET CHANGE IN FUND BALANCES (4,580) 6,212 381,460 383,092
FUND BALANCES, JANUARY 1 316,133 160,781 1,165,323 1,642,237
FUND BALANCES, DECEMBER 31 311,553$ 166,993$ 1,546,783$ 2,025,329$
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CITY OF NEW HOPE, MINNESOTA
NONMAJOR SPECIAL REVENUE FUNDS
Police Forfeitures Fund - This fund accounts for revenue received mainly from police fines and forfeitures, and is used for special
police, fire, and parks/recreation projects.
Solid Waste Management Fund - This fund accounts for grants and fees to be used to cover the cost of operations of the City’s solid
waste management program.
Ice Arena Endowment Fund - This fund is used to account for contributions and other receipts to be used for future capital needs
and budget requirements of the New Hope Ice Arena.
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CITY OF NEW HOPE, MINNESOTA
NONMAJOR SPECIAL REVENUE FUNDS
SUBCOMBINING BALANCE SHEET
DECEMBER 31, 2014
9021 9016 9017
Police Solid Waste Ice Arena
Forfeitures Management Endowment Total
ASSETS
Cash and temporary investments 120,464$ 156,804$ 794$ 278,062$
Receivables
Accounts - 24,558 - 24,558
Special assessments - 8,933 - 8,933
TOTAL ASSETS 120,464$ 190,295$ 794$ 311,553$
FUND BALANCES
Restricted for
Public safety police expenditures 120,464$ -$ -$ 120,464$
Ice arena - - 794 794
Committed to operations - 190,295 - 190,295
TOTAL FUND BALANCES 120,464$ 190,295$ 794$ 311,553$
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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, 2014
9021 9016 9017
Police Solid Waste Ice Arena
Forfeitures Management Endowment Total
REVENUES
Charges for services -$ 219,658$ -$ 219,658$
Fines and forfeitures 2,500 - - 2,500
Investment earnings 1,496 1,880 158 3,534
TOTAL REVENUES 3,996 221,538 158 225,692
EXPENDITURES
Current
Public safety
Supplies 991 - - 991
Public works
Supplies - 99 - 99
Other services and charges - 216,195 - 216,195
Culture and recreation
Other services and charges - - 12,987 12,987
TOTAL EXPENDITURES 991 216,294 12,987 230,272
NET CHANGE IN FUND BALANCES 3,005 5,244 (12,829) (4,580)
FUND BALANCES, JANUARY 1 117,459 185,051 13,623 316,133
FUND BALANCES, DECEMBER 31 120,464$ 190,295$ 794$ 311,553$
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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, 2014
Actual Variance with
Original Final Amounts Final Budget
REVENUES
Charges for services 253,296$ 253,296$ 219,658$ (33,638)$
Investment earnings 504 504 1,880 1,376
TOTAL REVENUES 253,800 253,800 221,538 (32,262)
EXPENDITURES
Current
Public works
Supplies - - 99 (99)
Other services and charges 253,735 253,735 216,195 37,540
TOTAL EXPENDITURES 253,735 253,735 216,294 37,441
NET CHANGE IN FUND BALANCES 65 65 5,244 5,179
FUND BALANCES, JANUARY 1 185,051 185,051 185,051 -
FUND BALANCES, DECEMBER 31 185,116$ 185,116$ 190,295$ 5,179$
Budgeted Amounts
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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.
City Hall CIP Fund - This fund accounts for the accumulation of reserves for City Hall projects.
Park Infrastructure Fund - This fund is used to account for park improvement projects.
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CITY OF NEW HOPE, MINNESOTA
NONMAJOR CAPITAL PROJECTS FUNDS
SUBCOMBINING BALANCE SHEET
DECEMBER 31, 2014
9010 9202 9233
Fire City Hall Park
Capital Projects CIP Infrastructure Total
ASSETS
Cash and temporary investments 150,277$ 296,108$ 1,105,556$ 1,551,941$
LIABILITIES
Accounts and contracts payable -$ -$ 5,158$ 5,158$
FUND BALANCES
Assigned to
Capital equipment 150,277 - - 150,277
City hall improvements - 296,108 - 296,108
Park improvements - - 1,100,398 1,100,398
TOTAL FUND BALANCES 150,277 296,108 1,100,398 1,546,783
TOTAL LIABILIES AND FUND BALANCES 150,277$ 296,108$ 1,105,556$ 1,551,941$
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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, 2014
9010 9202 9233
Fire City Hall Park
Capital Projects CIP Infrastructure Total
REVENUES
Taxes
Property taxes -$ -$ 296,000$ 296,000$
Intergovernmental
Charges for services - - 26,331 26,331
Investment earnings 277 2,734 12,182 15,193
Miscellaneous - - 24,969 24,969
TOTAL REVENUES 277 2,734 359,482 362,493
EXPENDITURES
Current
General government - 8,223 - 8,223
Capital outlay
Culture and recreation - - 222,810 222,810
TOTAL EXPENDITURES - 8,223 222,810 231,033
EXCESS (DEFICIENCY) OF REVENUES
OVER (UNDER) EXPENDITURES 277 (5,489) 136,672 131,460
OTHER FINANCING SOURCES
Transfers in 150,000 100,000 - 250,000
NET CHANGE IN FUND BALANCES 150,277 94,511 136,672 381,460
FUND BALANCES, JANUARY 1 - 201,597 963,726 1,165,323
FUND BALANCES, DECEMBER 31 150,277$ 296,108$ 1,100,398$ 1,546,783$
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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, 2014
(With comparative actual amounts for the year ended December 31, 2013)
2013
Actual Variance with Actual
Original Final Amounts Final Budget Amounts
REVENUES
Taxes
Property taxes 7,927,983$ 7,927,983$ 7,928,813$ 830$ 7,803,838$
Franchise taxes 464,000 464,000 438,541 (25,459) 438,834
Total taxes 8,391,983 8,391,983 8,367,354 (24,629) 8,242,672
Licenses and permits
Business regulatory licenses 58,620 58,620 66,344 7,724 68,497
Non-business licenses and permits 251,520 251,520 287,629 36,109 204,620
Total licenses and permits 310,140 310,140 353,973 43,833 273,117
Intergovernmental
Local government aid 174,036 174,036 174,036 - 41,945
Highway maintenance aid 165,000 165,000 174,763 9,763 167,431
Other Federal, state, and local grants 69,443 69,443 116,279 46,836 105,809
State insurance premium tax 200,000 200,000 231,653 31,653 211,724
Total intergovernmental 608,479 608,479 696,731 88,252 526,909
Charges for services
General government 243,238 243,238 290,857 47,619 247,403
Public safety 455,400 455,400 525,967 70,567 437,022
Public works 4,104 4,104 9,058 4,954 4,576
Culture and recreation 580,548 580,548 591,182 10,634 647,036
Total charges for services 1,283,290 1,283,290 1,417,064 133,774 1,336,037
Fines and forfeitures 366,000 366,000 213,085 (152,915) 223,851
Special assessments - - 12,763 12,763 9,716
Investment earnings 60,000 60,000 24,840 (35,160) 34,214
Miscellaneous 20,000 20,000 62,315 42,315 71,842
TOTAL REVENUES 11,039,892 11,039,892 11,148,125 108,233 10,718,358
Budgeted Amounts
2014
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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, 2014
(With comparative actual amounts for the year ended December 31, 2013)
2013
Actual Variance with Actual
Original Final Amounts Final Budget Amounts
EXPENDITURES
Current
General government
Mayor and City Council
Personnel services 49,869$ 49,869$ 51,544$ (1,675)$ 48,461$
Supplies 2,000 2,000 2,761 (761) 1,968
Other services and charges 30,923 30,923 28,199 2,724 31,360
Total 82,792 82,792 82,504 288 81,789
City hall
Supplies 34,000 34,000 31,499 2,501 24,005
Other services and charges 207,974 207,974 228,908 (20,934) 221,102
Total 241,974 241,974 260,407 (18,433) 245,107
City manager
Personnel services 318,301 318,301 337,206 (18,905) 305,920
Supplies 1,500 1,500 784 716 1,300
Other services and charges 20,693 20,693 23,422 (2,729) 22,933
Total 340,494 340,494 361,412 (20,918) 330,153
Elections
Personnel services 30,104 30,104 23,327 6,777 -
Supplies 2,500 2,500 924 1,576 957
Other services and charges 5,513 5,513 5,051 462 923
Total 38,117 38,117 29,302 8,815 1,880
Finance
Personnel services 151,083 151,083 152,763 (1,680) 144,012
Supplies 1,500 1,500 1,688 (188) 1,734
Other services and charges 125,030 125,030 108,720 16,310 122,305
Total 277,613 277,613 263,171 14,442 268,051
Auditing
Other services and charges 25,450 25,450 24,150 1,300 19,050
Assessing
Other services and charges 114,000 114,000 114,382 (382) 106,686
Legal
Other services and charges 30,000 30,000 35,312 (5,312) 19,349
Human resources
Personnel services 215,225 215,225 226,681 (11,456) 199,531
Supplies 1,000 1,000 516 484 420
Other services and charges 24,377 24,377 21,143 3,234 28,171
Total 240,602 240,602 248,340 (7,738) 228,122
Budgeted Amounts
2014
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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, 2014
(With comparative actual amounts for the year ended December 31, 2013)
2013
Actual Variance with Actual
Original Final Amounts Final Budget Amounts
Budgeted Amounts
2014
EXPENDITURES - CONTINUED
Current - continued
General government - continued
Planning and zoning
Personnel services 105,608$ 105,608$ 64,007$ 41,601$ 95,170$
Supplies 1,225 1,225 609 616 142
Other services and charges 48,697 48,697 40,033 8,664 37,202
Total 155,530 155,530 104,649 50,881 132,514
Communication
Personnel services 92,888 92,888 93,743 (855) 90,443
Supplies 1,400 1,400 1,429 (29) 1,659
Other services and charges 46,939 46,939 41,450 5,489 46,898
Total 141,227 141,227 136,622 4,605 139,000
Total general government 1,687,799 1,687,799 1,660,251 27,548 1,571,701
Public safety
Police
Personnel services 4,047,668 4,047,668 3,882,171 165,497 3,461,539
Supplies 67,295 67,295 90,669 (23,374) 91,254
Other services and charges 871,172 871,172 866,243 4,929 846,165
Total 4,986,135 4,986,135 4,839,083 147,052 4,398,958
Police reserves
Personnel services 24,127 24,127 19,350 4,777 14,961
Supplies 4,505 4,505 3,602 903 4,168
Other services and charges 20,272 20,272 18,214 2,058 19,390
Total 48,904 48,904 41,166 7,738 38,519
Fire and safety
Personnel services - - 303 (303) -
Supplies 5,000 5,000 (26) 5,026 210
Other services and charges 1,009,412 1,009,412 1,006,265 3,147 971,881
Total 1,014,412 1,014,412 1,006,542 7,870 972,091
Animal control
Personnel services 90,795 90,795 76,377 14,418 74,254
Supplies 1,020 1,020 251 769 286
Other services and charges 29,037 29,037 29,233 (196) 29,407
Total 120,852 120,852 105,861 14,991 103,947
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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, 2014
(With comparative actual amounts for the year ended December 31, 2013)
2013
Actual Variance with Actual
Original Final Amounts Final Budget Amounts
Budgeted Amounts
2014
EXPENDITURES - CONTINUED
Current - continued
Public safety - continued
Protective inspection
Personnel services 330,998$ 330,998$ 307,293$ 23,705$ 331,892$
Supplies 3,500 3,500 1,939 1,561 2,586
Other services and charges 94,180 94,180 94,985 (805) 94,104
Total 428,678 428,678 404,217 24,461 428,582
Total public safety 6,598,981 6,598,981 6,396,869 202,112 5,942,097
Public works
Street maintenance
Personnel services 503,697 503,697 444,739 58,958 525,984
Supplies 115,067 115,067 107,483 7,584 84,051
Other services and charges 438,390 438,390 408,135 30,255 408,522
Total 1,057,154 1,057,154 960,357 96,797 1,018,557
Engineering
Other services and charges 12,000 12,000 48,900 (36,900) 19,630
Total public works 1,069,154 1,069,154 1,009,257 59,897 1,038,187
Culture and recreation
Recreation
Personnel services 487,564 487,564 515,393 (27,829) 490,048
Supplies 88,825 88,825 139,012 (50,187) 64,515
Other services and charges 193,110 193,110 185,189 7,921 186,081
Total 769,499 769,499 839,594 (70,095) 740,644
Parks
Personnel services 528,167 528,167 458,064 70,103 450,451
Supplies 36,400 36,400 30,882 5,518 29,678
Other services and charges 286,833 286,833 245,769 41,064 222,901
Total 851,400 851,400 734,715 116,685 703,030
Swimming pool
Personnel services 117,109 117,109 102,578 14,531 91,571
Supplies 41,940 41,940 32,778 9,162 35,166
Other services and charges 41,910 41,910 39,309 2,601 35,346
Total 200,959 200,959 174,665 26,294 162,083
Total culture and recreation 1,821,858 1,821,858 1,748,974 72,884 1,605,757
Total current expenditures 11,177,792 11,177,792 10,815,351 362,441 10,157,742
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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, 2014
(With comparative actual amounts for the year ended December 31, 2013)
2013
Actual Variance with Actual
Original Final Amounts Final Budget Amounts
Budgeted Amounts
2014
EXPENDITURES - CONTINUED
Capital outlay
General government 25,000$ 25,000$ 18,748$ 6,252$ 38,417$
Public safety 252,600 252,600 245,610 6,990 110,195
Culture and recreation 3,500 3,500 - 3,500 -
Total capital outlay 281,100 281,100 264,358 16,742 148,612
TOTAL EXPENDITURES 11,458,892 11,458,892 11,079,709 379,183 10,306,354
EXCESS (DEFICIENCY) OF REVENUES
OVER (UNDER) EXPENDITURES (419,000) (419,000) 68,416 487,416 412,004
OTHER FINANCING SOURCES (USES)
Transfers in 419,000 419,000 419,461 461 257,902
Sale of capital assets - - - - 1,460
Transfers out - - (250,000) (250,000) (183,686)
TOTAL OTHER FINANCING
SOURCES (USES)419,000 419,000 169,461 (249,539) 75,676
NET CHANGE IN FUND BALANCES - - 237,877 237,877 487,680
FUND BALANCES, JANUARY 1 5,583,417 5,583,417 5,583,417 - 5,095,737
FUND BALANCES, DECEMBER 31 5,583,417$ 5,583,417$ 5,821,294$ 237,877$ 5,583,417$
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INTENTIONALLY
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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.
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CITY OF NEW HOPE, MINNESOTA
INTERNAL SERVICE FUNDS
COMBINING STATEMENT OF NET POSITION
DECEMBER 31, 2014
9402 9408 9407 9410
Central Employee Insurance Information
Garage Leave Reserve Technology Totals
ASSETS
CURRENT ASSETS
Cash and temporary investments 4,661,455$ 683,936$ 595,917$ 122,430$ 6,063,738$
Receivables
Accounts - - 5,569 - 5,569
Due from other governments - - 1,564 - 1,564
Inventories 85,235 - - - 85,235
TOTAL CURRENT ASSETS 4,746,690 683,936 603,050 122,430 6,156,106
NONCURRENT ASSETS
Capital assets
Land 85,647 - - - 85,647
Buildings and structures 3,141,396 - - - 3,141,396
Vehicles and equipment 7,815,545 - - 314,610 8,130,155
Less: accumulated depreciation (7,296,161) - - (217,423) (7,513,584)
Total capital assets
(net of accumulated depreciation)3,746,427 - - 97,187 3,843,614
TOTAL ASSETS 8,493,117 683,936 603,050 219,617 9,999,720
LIABILITIES
CURRENT LIABILITIES
Accrued salaries payable 14,423 37,071 - 5,749 57,243
Accounts and contracts payable 88,922 - 1,450 2,711 93,083
Due to other governments 1,160 - 46,767 16,442 64,369
Compensated absences payable, current portion - 49,395 - - 49,395
TOTAL CURRENT LIABILITIES 104,505 86,466 48,217 24,902 264,090
NONCURRENT LIABILITIES
Other postemployment benefits payable - - 230,944 - 230,944
Compensated absences payable - 444,548 - - 444,548
TOTAL NONCURRENT LIABILITIES - 444,548 230,944 - 675,492
TOTAL LIABILITIES 104,505 531,014 279,161 24,902 939,582
NET POSITION
Net investment in capital assets 3,746,427 - - 97,187 3,843,614
Unrestricted 4,642,185 152,922 323,889 97,528 5,216,524
TOTAL NET POSITION 8,388,612$ 152,922$ 323,889$ 194,715$ 9,060,138$
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CITY OF NEW HOPE, MINNESOTA
INTERNAL SERVICE FUNDS
COMBINING STATEMENT OF REVENUES, EXPENSES AND
CHANGES IN NET POSITION
FOR THE YEAR ENDED DECEMBER 31, 2014
9402 9408 9407 9410
Central Employee Insurance Information
Garage Leave Reserve Technology Totals
OPERATING REVENUES
Billings to departments 1,537,068$ 478,699$ 40,247$ 599,952$ 2,655,966$
Other 24,363 - 141,226 - 165,589
TOTAL OPERATING REVENUES 1,561,431 478,699 181,473 599,952 2,821,555
OPERATING EXPENSES
Personnel services 384,886 466,226 74,943 114,917 1,040,972
Supplies 353,562 - 109 49,916 403,587
Utilities 52,981 - - 32,149 85,130
Other services and charges 355,483 - 156,564 385,027 897,074
Depreciation 704,616 - - 29,016 733,632
TOTAL OPERATING EXPENSES 1,851,528 466,226 231,616 611,025 3,160,395
OPERATING INCOME (LOSS)(290,097) 12,473 (50,143) (11,073) (338,840)
NONOPERATING REVENUES
Investment earnings 60,514 8,143 6,579 1,249 76,485
INCOME (LOSS) BEFORE TRANSFERS (229,583) 20,616 (43,564) (9,824) (262,355)
TRANSFERS OUT (30,000) - - (48,000) (78,000)
CHANGE IN NET POSITION (259,583) 20,616 (43,564) (57,824) (340,355)
NET POSITION, JANUARY 1 8,648,195 132,306 367,453 252,539 9,400,493
NET POSITION, DECEMBER 31 8,388,612$ 152,922$ 323,889$ 194,715$ 9,060,138$
-105-
CITY OF NEW HOPE, MINNESOTA
INTERNAL SERVICE FUNDS
COMBINING STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED DECEMBER 31, 2014
9402 9408 9407 9410
Central Employee Insurance Information
Garage Leave Reserve Technology Totals
CASH FLOWS FROM OPERATING ACTIVITIES
Receipts from interfund services provided 1,537,068$ 478,699$ 34,678$ 599,952$ 2,650,397$
Other operating receipts 24,363 - 220,546 - 244,909
Payments to suppliers (712,651) - (110,697) (475,907) (1,299,255)
Payments to employees (385,889) (411,564) (1,398) (113,563) (912,414)
NET CASH PROVIDED (USED)
BY OPERATING ACTIVITIES 462,891 67,135 143,129 10,482 683,637
CASH FLOWS FROM NONCAPITAL
FINANCING ACTIVITIES
Transfers out (30,000) - - (48,000) (78,000)
CASH FLOWS FROM CAPITAL
AND RELATED FINANCING ACTIVITIES
Acquisition capital assets (634,177) - - - (634,177)
CASH FLOWS FROM INVESTING ACTIVITIES
Investment earnings 60,514 8,143 6,579 1,249 76,485
NET INCREASE (DECREASE)
IN CASH AND CASH EQUIVALENTS (140,772) 75,278 149,708 (36,269) 47,945
CASH AND CASH EQUIVALENTS, JANUARY 1 4,802,227 608,658 446,209 158,699 6,015,793
CASH AND CASH EQUIVALENTS, DECEMBER 31 4,661,455$ 683,936$ 595,917$ 122,430$ 6,063,738$
RECONCILIATION OF OPERATING INCOME (LOSS)
TO NET CASH PROVIDED (USED)
BY OPERATING ACTIVITIES
Operating income (loss)(290,097)$ 12,473$ (50,143)$ (11,073)$ (338,840)
Adjustments to reconcile operating income (loss)
to net cash provided (used) by operating activities
Depreciation 704,616 - - 29,016 733,632
(Increase) decrease in assets
Accounts receivable - - (5,569) - (5,569)
Due from other governments - - 79,320 - 79,320
Inventories (10,810) - - - (10,810)
Increase (decrease) in liabilities
Accounts and contracts payable 60,188 - (791) (2,264) 57,133
Accrued salaries payable (1,003) 37,071 - 1,354 37,422
Due to other governments (3) - 46,767 (6,551) 40,213
Compensated absences payable - 17,591 - - 17,591
Other postemployment benefits payable - - 73,545 - 73,545
NET CASH PROVIDED (USED)
BY OPERATING ACTIVITIES 462,891$ 67,135$ 143,129$ 10,482$ 683,637$
-106-
CITY OF NEW HOPE, MINNESOTA
AGENCY FUND
STATEMENT OF CHANGES IN ASSETS AND LIABILITIES
FOR THE YEAR ENDED DECEMBER 31, 2014
Balance Balance
January 1 Additions Deductions December 31
PASS-THROUGH GRANT FUND
ASSETS
Cash and temporary investments 16,374$ 192$ (6,470)$ 10,096$
LIABILITIES
Deposits payable 16,374$ 192$ (6,470)$ 10,096$
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INTENTIONALLY
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STATISTICAL SECTION (UNAUDITED)
CITY OF NEW HOPE
NEW HOPE, MINNESOTA
FOR THE YEAR ENDED
DECEMBER 31, 2014
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INTENTIONALLY
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STATISTICAL SECTION
(Unaudited)
This part of the City’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 City’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 City’s current levels of outstanding debt and
the City’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 City 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.
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INTENTIONALLY
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2014 2013
REVENUES
Taxes
Property taxes 9,718,800$ 9,531,663$ 1.96 %
Tax increments 537,871 511,924 5.07
Franchise taxes 438,541 438,834 (0.07)
Licenses and permits 353,973 273,117 29.60
Intergovernmental 818,825 4,463,113 (81.65)
Charges for services 1,663,053 1,585,964 4.86
Fines and forfeitures 215,585 239,201 (9.87)
Special assessments 98,617 178,335 (44.70)
Investment earnings 248,013 178,217 39.16
Miscellaneous 129,980 111,443 16.63
TOTAL REVENUES 14,223,258$ 17,511,811$ (18.78) %
Per capita 680$ 843$ (19.32) %
EXPENDITURES
Current
General government 1,668,474$ 1,571,701$ 6.16 %
Public safety 6,397,860 5,967,599 7.21
Public works 1,225,551 1,254,201 (2.28)
Culture and recreation 1,761,961 1,613,518 9.20
Economic development 298,825 582,621 (48.71)
Capital outlay 3,000,518 4,239,938 (29.23)
Debt service
Principal 350,000 340,000 2.94
Interest 212,025 306,462 (30.82)
Bond issuance costs 2,200 - 100.00
TOTAL EXPENDITURES 14,917,414$ 15,876,040$ (6.04) %
Per capita 714$ 765$ (6.67) %
Total Long-term indebtedness 4,880,000$ 9,010,000$ (45.84) %
Per capita 233 434 (46.20)
General Fund Balance - December 31 5,821,294$ 5,583,417$ 4.26 %
Per capita 278 269 3.56
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.
CITY OF NEW HOPE, MINNESOTA
SUMMARY FINANCIAL REPORT
REVENUES AND EXPENDITURES FOR GENERAL OPERATIONS
GOVERNMENTAL FUNDS
(Decrease)
Increase
Percent
Total
FOR THE YEAR ENDED DECEMBER 31, 2014
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CITY OF NEW HOPE, MINNESOTA
STATISTICAL SECTION (UNAUDITED)
NET POSITION BY COMPONENT
LAST TEN FISCAL YEARS
(accrual basis of accounting)
2005 2006 2007 2008
Governmental activities
Net investment in capital assets 11,770,767$ 13,366,539$ 14,572,777$ 16,099,860$
Restricted 18,186,452 17,056,531 18,030,936 17,857,296
Unrestricted 4,677,467 6,049,538 7,399,637 8,643,991
Total governmental activities net position 34,634,686$ 36,472,608$ 40,003,350$ 42,601,147$
Business-type activities
Net investment in capital assets 7,277,094$ 7,817,568$ 8,018,286$ 9,008,538$
Restricted - - - -
Unrestricted 1,704,470 1,379,488 1,625,562 1,423,111
Total business-type activities net position 8,981,564$ 9,197,056$ 9,643,848$ 10,431,649$
Total primary government
Net investment in capital assets 19,047,861$ 21,184,107$ 22,591,063$ 25,108,398$
Restricted 18,186,452 17,056,531 18,030,936 17,857,296
Unrestricted 6,381,937 7,429,026 9,025,199 10,067,102
Total primary government 43,616,250$ 45,669,664$ 49,647,198$ 53,032,796$
Fiscal YearFiscal Year
Note: The City implemented GASB Statement No. 63 and GASB Statement No. 65 in fiscal 2012. Net position information has been
restated for 2011 for this accounting change. Years prior to 2011 have not been restated.
-114-
2011
2009 2010 (Restated)2012 2013 2014
16,411,454$ 16,495,175$ 20,628,143$ 26,793,142$ 30,509,373$ 26,305,906$
19,454,696 9,279,142 6,018,734 1,619,696 1,619,394 5,680,117
9,151,912 21,971,477 21,845,278 22,746,207 23,704,592 23,130,558
45,018,062$ 47,745,794$ 48,492,155$ 51,159,045$ 55,833,359$ 55,116,581$
9,395,068$ 9,989,405$ 11,114,666$ 12,843,624$ 14,142,276$ 14,757,333$
- - - 150,000 300,000 455,000
1,650,590 2,541,156 3,978,803 2,735,144 2,496,008 1,798,707
11,045,658$ 12,530,561$ 15,093,469$ 15,728,768$ 16,938,284$ 17,011,040$
25,806,522$ 26,484,580$ 31,742,809$ 39,636,766$ 44,651,649$ 41,063,239$
19,454,696 9,279,142 6,018,734 1,769,696 1,919,394 6,135,117
10,802,502 24,512,633 25,824,081 25,481,351 26,200,600 24,929,265
56,063,720$ 60,276,355$ 63,585,624$ 66,887,813$ 72,771,643$ 72,127,621$
Fiscal Year
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CITY OF NEW HOPE, MINNESOTA
STATISTICAL SECTION (UNAUDITED)
CHANGES IN NET POSITION - CONTINUED ON THE FOLLOWING PAGES
LAST TEN FISCAL YEARS
(accrual basis of accounting)
2005 2006 2007 2008
Expenses
Governmental activities
General government 3,253,971$ 3,683,505$ 3,547,855$ 2,492,386$
Public safety 4,650,531 4,739,744 5,291,323 5,988,010
Public works 1,346,334 1,514,119 650,686 1,381,386
Culture and recreation 1,701,120 1,897,571 1,868,403 1,967,129
Economic development - - - -
Interest on long-term debt 582,402 395,308 369,508 340,081
Total governmental activities expenses 11,534,358 12,230,247 11,727,775 12,168,992
Business-type activities
Sewer - - - -
Water 4,083,803 4,680,584 4,955,642 4,915,929
Golf course 457,175 420,223 440,666 383,521
Ice arena 677,911 724,020 723,264 780,816
Storm water 689,622 607,298 387,889 361,542
Street lighting 109,960 106,052 126,966 121,912
Total business-type activities expenses 6,018,471 6,538,177 6,634,427 6,563,720
Total expenses 17,552,829$ 18,768,424$ 18,362,202$ 18,732,712$
Program revenues
Governmental activities
Charges for services
General government 1,183,365$ 1,084,659$ 1,314,007$ 1,164,394$
Public safety 124,235 142,197 251,622 151,180
Public works - 4,843 - -
Culture and recreation 476,484 452,889 503,648 579,694
Economic development - - - -
Operating grants and contributions 331,591 263,548 270,403 388,166
Capital grants and contributions 497,096 151,934 392,468 63,947
Total governmental activities program revenues 2,612,771 2,100,070 2,732,148 2,347,381
Business-type activities
Charges for services
Sewer - - - -
Water 4,284,906 4,491,025 4,870,737 5,175,878
Golf course 337,730 345,828 337,712 330,782
Ice arena 591,555 622,428 610,145 659,377
Storm water 856,761 881,682 922,850 951,699
Street lighting 111,551 115,162 116,940 133,634
Operating grants and contributions 16,968 108,371 152,038 16,250
Capital grants and contributions 55,391 138,886 21,381 16,353
Total business-type activities program revenues 6,254,862 6,703,382 7,031,803 7,283,973
Total program revenues 8,867,633$ 8,803,452$ 9,763,951$ 9,631,354$
Fiscal Year
-116-
2011
2009 2010 (Restated)2012 2013 2014
2,244,977$ 2,552,425$ 1,841,145$ 1,931,318$ 1,837,194$ 1,976,377$
6,218,996 5,864,775 6,129,860 6,062,362 6,238,779 6,795,836
1,291,983 1,625,959 1,795,189 2,126,043 1,790,669 2,467,618
2,053,788 1,899,105 1,882,279 1,928,591 1,946,243 2,145,224
- 192,431 536,433 762,202 431,332 1,704,010
275,532 252,224 236,827 407,744 289,009 140,321
12,085,276 12,386,919 12,421,733 13,218,260 12,533,226 15,229,386
- 1,928,845 2,068,282 2,220,438 2,310,604 1,976,864
5,265,147 2,915,757 3,530,521 3,682,602 3,215,714 4,635,686
369,579 346,345 322,679 298,555 262,894 304,059
694,039 712,153 844,828 771,628 957,784 877,826
393,118 430,899 485,943 425,112 768,610 558,160
126,983 104,099 113,753 104,721 117,518 99,560
6,848,866 6,438,098 7,366,006 7,503,056 7,633,124 8,452,155
18,934,142$ 18,825,017$ 19,787,739$ 20,721,316$ 20,166,350$ 23,681,541$
1,048,549$ 984,855$ 220,629$ 177,174$ 198,297$ 234,440$
134,680 218,732 877,159 804,725 880,843 1,047,721
- - 219,353 219,548 226,228 224,790
527,079 562,383 637,077 653,293 672,067 617,459
- 104,713 98,139 94,664 - -
586,508 1,356,292 783,382 2,162,263 828,276 1,013,058
117,544 787,047 1,107,042 245,290 3,929,565 47,917
2,414,360 4,014,022 3,942,781 4,356,957 6,735,276 3,185,385
- 2,292,300 2,352,635 2,376,021 2,443,202 2,414,482
5,141,131 3,082,771 3,169,859 3,581,225 3,460,008 3,634,873
345,550 313,941 278,788 296,316 268,133 254,508
723,975 741,266 752,671 694,702 725,211 775,784
933,828 943,883 947,031 948,650 963,167 948,537
149,339 121,647 122,742 124,397 125,604 123,060
66,609 470,183 24,031 22,340 306,520 444,484
75,209 30,739 114,826 106,291 225,300 11,469
7,435,641 7,996,730 7,762,583 8,149,942 8,517,145 8,607,197
9,850,001$ 12,010,752$ 11,705,364$ 12,506,899$ 15,252,421$ 11,792,582$
Fiscal Year
-117-
CITY OF NEW HOPE, MINNESOTA
STATISTICAL SECTION (UNAUDITED)
CHANGES IN NET POSITION - CONTINUED
LAST TEN FISCAL YEARS
(accrual basis of accounting)
2005 2006 2007 2008
Net revenues (expenses)
Governmental activities (8,921,587)$ (10,130,177)$ (8,995,627)$ (9,821,611)$
Business-type activities 236,391 165,205 397,376 720,253
Total primary government revenues (expenses)(8,685,196)$ (9,964,972)$ (8,598,251)$ (9,101,358)$
General Revenues and Other Changes in Net Position
General Revenues
Governmental activities
Taxes
Property taxes 7,047,478$ 7,097,895$ 7,756,543$ 8,416,466$
Tax increments 991,476 1,195,726 1,673,394 1,835,749
Franchise taxes 435,875 433,806 444,898 441,133
Grants and contributions not
restricted to specific programs 2,098,594 1,497,688 600,221 666,543
Unrestricted investment earnings 607,253 1,155,967 1,698,749 992,673
Gain on sale of capital assets - - - -
Miscellaneous 886,549 599,337 352,564 96,911
Transfers (23,396) (12,320) - (30,067)
Total governmental activities general revenues 12,043,829 11,968,099 12,526,369 12,419,408
Business-type activities
Grants and contributions not
restricted to specific programs 197,458 5,089 - -
Unrestricted investment earnings 23,329 32,878 49,416 37,481
Transfers 23,396 12,320 - 30,067
Total business-type activities general revenues 244,183 50,287 49,416 67,548
Total primary government 12,288,012$ 12,018,386$ 12,575,785$ 12,486,956$
Change in Net Position
Governmental activities 3,122,242$ 1,837,922$ 3,530,742$ 2,597,797$
Business-type activities 480,574 215,492 446,792 787,801
Total primary government 3,602,816$ 2,053,414$ 3,977,534$ 3,385,598$
Fiscal Year
Note: The City implemented GASB Statement No. 63 and GASB Statement No. 65 in fiscal 2012. Net position information has been
restated for 2011 for this accounting change. Years prior to 2011 have not been restated.
-118-
2011
2009 2010 (Restated)2012 2013 2014
(9,670,916)$ (8,372,897)$ (8,478,952)$ (8,861,303)$ (5,797,950)$ (12,044,001)$
586,775 1,558,632 396,577 646,886 884,021 155,042
(9,084,141)$ (6,814,265)$ (8,082,375)$ (8,214,417)$ (4,913,929)$ (11,888,959)$
8,760,482$ 8,730,979$ 8,784,948$ 9,129,247$ 9,554,629$ 9,732,776$
1,262,598 1,408,256 1,400,163 1,343,248 511,924 537,871
438,744 430,494 439,795 440,149 438,834 438,541
755,762 79,529 87,206 47,662 49,005 179,537
723,565 337,312 745,484 429,595 198,658 324,498
- 22,930 13,568 69,321 37,201 -
146,680 - - - - -
- 91,129 (2,163,781) 68,971 (317,987) 114,000
12,087,831 11,100,629 9,307,383 11,528,193 10,472,264 11,327,223
- - - - - -
27,234 17,400 71,089 57,384 7,508 31,714
- (91,129) 2,163,781 (68,971) 317,987 (114,000)
27,234 (73,729) 2,234,870 (11,587) 325,495 (82,286)
12,115,065$ 11,026,900$ 11,542,253$ 11,516,606$ 10,797,759$ 11,244,937$
2,416,915$ 2,727,732$ 828,431$ 2,666,890$ 4,674,314$ (716,778)$
614,009 1,484,903 2,631,447 635,299 1,209,516 72,756
3,030,924$ 4,212,635$ 3,459,878$ 3,302,189$ 5,883,830$ (644,022)$
Fiscal Year
-119-
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INTENTIONALLY
-120-
CITY OF NEW HOPE, MINNESOTA
STATISTICAL SECTION (UNAUDITED)
GOVERNMENTAL ACTIVITIES TAX REVENUES BY SOURCE
LAST TEN FISCAL YEARS
(accrual basis of accounting)
Fiscal Property Tax Franchise
Year tax increments tax Total
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
2012 9,129,247 1,343,248 440,149 10,912,644
2013 9,554,629 511,924 438,834 10,505,387
2014 9,732,776 537,871 438,541 10,709,188
-121-
CITY OF NEW HOPE, MINNESOTA
STATISTICAL SECTION (UNAUDITED)
FUND BALANCES OF GOVERNMENTAL FUNDS
LAST TEN FISCAL YEARS
(modified accrual basis of accounting)
2005 2006 2007 2008
General fund
Reserved -$ -$ -$ -$
Unreserved 3,975,418 4,227,954 4,249,604 3,952,477
Nonspendable - - - -
Unassigned - - - -
Total general fund 3,975,418$ 4,227,954$ 4,249,604$ 3,952,477$
All other governmental funds
Reserved -$ -$ -$ 2,433,162$
Unreserved, reported in
Special Revenue funds 3,844,116 4,385,348 4,748,023 2,993,986
Debt Service funds 6,383,506 6,294,149 5,992,108 6,571,884
Capital Project funds 6,877,231 5,458,640 6,569,745 5,962,599
Restricted - - - -
Committed - - - -
Assigned - - - -
Unassigned - - - -
Total all other governmental funds 17,104,853$ 16,138,137$ 17,309,876$ 17,961,631$
Total all governmental funds 21,080,271$ 20,366,091$ 21,559,480$ 21,914,108$
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.
Fiscal Year
-122-
2011
2009 2010 (Restated)2012 2013 2014
-$ 63,753$ -$ -$ -$ -$
4,354,351 4,527,847 - - - -
- - 14,366 14,925 15,484 16,005
- - 4,920,846 5,080,812 5,567,933 5,805,289
4,354,351$ 4,591,600$ 4,935,212$ 5,095,737$ 5,583,417$ 5,821,294$
4,699,636$ 9,043,337$ -$ -$ -$ -$
3,266,399 3,129,062 - - - -
6,450,295 - - - - -
5,317,588 9,771,932 - - - -
- - 6,114,114 5,657,606 5,550,819 5,687,949
- - 4,666,447 5,165,192 4,511,073 4,771,304
- - 6,877,641 6,533,868 8,204,338 7,839,792
- - - - - (134,792)
19,733,918$ 21,944,331$ 17,658,202$ 17,356,666$ 18,266,230$ 18,164,253$
24,088,269$ 26,535,931$ 22,593,414$ 22,452,403$ 23,849,647$ 23,985,547$
Fiscal Year
-123-
CITY OF NEW HOPE, MINNESOTA
STATISTICAL SECTION (UNAUDITED)
CHANGES IN FUND BALANCES OF GOVERNMENTAL FUNDS
LAST TEN FISCAL YEARS
(modified accrual basis of accounting)
2005 2006 2007 2008
Revenues
Property taxes 8,069,691$ 8,330,410$ 9,386,469$ 9,910,002$
Tax increments - - - -
Franchise taxes 435,875 433,806 444,898 441,133
Licenses and permits 398,843 289,534 332,351 415,012
Intergovernmental 2,415,857 1,731,191 970,543 1,038,461
Charges for services 1,008,883 1,036,710 1,149,810 1,125,819
Fines and forfeitures 240,273 266,750 247,794 285,255
Special assessments 417,697 310,708 326,909 203,199
Investment earnings - - - -
Miscellaneous 837,789 1,031,207 1,747,196 906,365
Total revenues 13,824,908 13,430,316 14,605,970 14,325,246
Expenditures
General government 1,857,955 1,771,012 1,959,594 1,949,002
Public safety 4,594,910 4,739,323 5,281,122 5,880,729
Public works 960,101 825,199 883,268 830,900
Culture and recreation 1,515,255 1,607,849 1,638,354 1,687,171
Economic development - - - -
Capital outlay 2,342,117 4,326,095 1,769,589 2,444,825
Debt service
Principal 1,650,000 940,000 1,525,000 820,000
Interest 480,746 432,698 357,654 357,991
Bond issuance costs - - - -
Total expenditures 13,401,084 14,642,176 13,414,581 13,970,618
Excess (deficiency) of revenues
over (under) expenditures 423,824 (1,211,860) 1,191,389 354,628
Other financing sources (uses)
Transfers in - - - 653,787
Sales of capital assets 85,757 510,000 2,000 -
Bonds issued 1,370,000 - - -
Premium on bonds issued - - - -
Refunding bonds issued 1,455,000 - - -
Principal payments to refunded bond escrow agent - - - -
Bonds refunded (1,425,000) - - -
Transfers out (23,396) (12,320) - (653,787)
Total other financing
sources (uses)1,462,361 497,680 2,000 -
Net change in fund balances 1,886,185$ (714,180)$ 1,193,389$ 354,628$
Debt service as a percentage of
Noncapital expenditures 11.1%17.1%11.2%15.1%
Fiscal Year
-124-
2011
2009 2010 (Restated)2012 2013 2014
9,898,968$ 8,694,245$ 8,767,959$ 9,199,381$ 9,531,663$ 9,718,800$
- 1,408,256 1,400,163 1,343,248 511,924 537,871
438,744 430,494 439,795 440,149 438,834 438,541
226,303 236,378 359,530 238,943 273,117 353,973
1,401,010 1,765,220 1,599,253 858,816 4,463,113 818,825
1,166,302 1,369,904 1,544,369 1,557,898 1,585,964 1,663,053
236,173 238,961 255,329 283,233 239,201 215,585
157,581 258,392 153,835 305,818 178,335 98,617
- 393,913 548,548 307,032 178,217 248,013
791,039 87,607 115,183 80,073 111,443 129,980
14,316,120 14,883,370 15,183,964 14,614,591 17,511,811 14,223,258
1,726,566 1,883,729 1,560,511 1,567,301 1,571,701 1,668,474
5,933,364 5,791,511 5,933,201 5,946,209 5,967,599 6,397,860
740,014 989,734 1,079,884 1,192,760 1,254,201 1,225,551
1,698,807 1,599,381 1,560,486 1,599,041 1,613,518 1,761,961
- 192,431 289,650 304,064 582,621 298,825
1,137,776 2,605,724 5,263,935 7,685,819 4,239,938 3,000,518
885,000 515,000 1,005,000 330,000 340,000 350,000
273,100 273,054 247,973 270,613 306,462 212,025
- - 93,820 104,351 - 2,200
12,394,627 13,850,564 17,034,460 19,000,158 15,876,040 14,917,414
1,921,493 1,032,806 (1,850,496) (4,385,567) 1,635,771 (694,156)
1,236,793 2,596,321 2,477,195 936,188 360,427 669,461
- 1,954 - - 1,460 4,055,382
- 1,245,000 - - - -
- 16,173 - 54,006 - -
- - - 4,025,000 - -
- - - - - (3,780,000)
- - - - - -
(984,125) (2,444,592) (4,569,216) (770,638) (600,414) (477,461)
252,668 1,414,856 (2,092,021) 4,244,556 (238,527) 467,382
2,174,161$ 2,447,662$ (3,942,517)$ (141,011)$ 1,397,244$ (226,774)$
9.7%9.8%6.4%4.1%5.6%4.5%
Fiscal Year
-125-
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INTENTIONALLY
-126-
CITY OF NEW HOPE, MINNESOTA
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
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
2012 9,199,381 1,343,248 440,149 10,982,778
2013 9,531,663 511,924 438,834 10,482,421
2014 9,718,800 537,871 438,541 10,695,212
-127-
CITY OF NEW HOPE, MINNESOTA
STATISTICAL SECTION (UNAUDITED)
TAX CAPACITY, MARKET VALUE AND ESTIMATED ACTUAL VALUE OF TAXABLE PROPERTY
(Shown by year of tax collectability)
2005 2006 2007 2008
Taxable market value
Real property
Personal property
Total taxable market value
Estimated actual value of taxable property 1,423,083,200$ 1,571,305,700$ 1,692,471,900$ 1,750,807,800$
Taxable market value as a percentage of
estimated actual value
Tax capacity
Real property 17,385,942$ 18,838,116$ 20,386,553$ 21,248,319$
Personal property 144,681 163,526 172,470 151,679
Subtotal 17,530,623 19,001,642 20,559,023 21,399,998
Less: tax increment (773,458) (1,024,773) (1,471,827) (1,646,615)
Less: contribution to fiscal disparities (1,937,115) (1,898,610) (2,035,088) (2,292,166)
Add: distribution from fiscal disparities 2,506,494 2,647,714 2,806,702 3,398,192
Net tax capacity 17,326,544$ 18,725,973$ 19,858,810$ 20,859,409$
Tax levies
Revenue
Bonds and interest
Total
Tax capacity rate
Revenue
Bonds and interest
Sewer district
Total direct tax rate 46.276 %42.375 %42.346 %41.995 %
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.
LAST TEN FISCAL YEARS
Fiscal Year
-128-
2009 2010 2011 2012 2013 2014
1,618,178,200$ 1,492,408,000$ 1,321,463,913$ 1,214,204,483$ 1,224,417,514$
7,624,400 8,162,100 8,515,600 9,657,700 10,849,800
1,625,802,600$ 1,500,570,100$ 1,329,979,513$ 1,223,862,183$ 1,235,267,314$
1,732,235,700$ 1,629,433,100$ 1,504,929,000$ 1,438,796,300$ 1,336,539,900$ 1,346,449,200$
99.78 %99.71 %92.44 %91.57 %91.74 %
21,095,335$ 19,864,103$ 18,462,796$ 16,686,170$ 15,476,014$ 15,454,712$
146,456 148,346 159,492 165,812 188,654 211,746
21,241,791 20,012,449 18,622,288 16,851,982 15,664,668 15,666,458
(1,365,233) (1,181,390) (1,044,830) (944,560) (366,752) (377,138)
(2,518,620) (2,596,468) (2,466,459) (2,380,423) (2,255,476) (2,154,731)
3,821,605 3,946,315 3,896,651 3,605,075 3,448,346 3,437,911
21,179,543$ 20,180,906$ 19,007,650$ 17,132,074$ 16,490,786$ 16,572,500$
9,053,443$ 9,036,625$ 9,066,928$ 9,406,483$ 9,556,483$
39,268 192,105 161,802 164,325 161,487
9,092,711$ 9,228,730$ 9,228,730$ 9,570,808$ 9,717,970$
45.542 %47.916 %53.842 %57.802 %57.622 %
0.199 1.025 0.967 1.010 0.974
0.273 0.308 0.387 - -
41.342 %46.014 %49.249 %55.196 %58.812 %58.596 %
Fiscal Year
-129-
CITY OF NEW HOPE, MINNESOTA
STATISTICAL SECTION (UNAUDITED)
PROPERTY TAX CAPACITY RATES - DIRECT AND OVERLAPPING GOVERNMENTS
LAST TEN FISCAL YEARS
Year
Taxes General Debt Sewer District
Payable Levy Levy Total County
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
2012 53.842 0.967 0.387 58.812
2013 57.802 1.010 - 58.812
2014 57.622 0.974 - 58.596
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).
Levy
Direct Rate - City of New Hope
-130-
County No. 281 Other Total
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
48.231 32.534 10.422 149.999
49.461 32.347 10.933 151.553
49.959 34.777 11.307 154.639
Overlapping Rates
School
District
-131-
CITY OF NEW HOPE, MINNESOTA
STATISTICAL SECTION (UNAUDITED)
PRINCIPAL PROPERTY TAXPAYERS
CURRENT YEAR AND NINE YEARS AGO
Tax
Taxpayer Capacity Rank
FLS Properties 175,190$ 1 1.12 %
Paddock Property Ltd. Partnership 160,770 2 1.03
Allen Group, LLC 158,250 3 1.01
St. Therese Home, Inc.155,906 4 1.00
Colfin Industrial Holdings 151,070 5 0.96
STNL (New Hope), LLC 148,870 6 0.95
New Hope Property, LLC 135,888 7 0.87
New Hope Property, LLC 135,000 8 0.86
Winnetka Mall, LLC 127,470 9 0.81
Idcor Properties 125,910 10 0.80
Lang Nelson Association - - -
Minn Masonic Home North Ridge - - -
Geneva Management Service, LLC - - -
New Hope Distribution Center, LLC - - -
NL Ventures IV New Hope, LP - - -
New Hope / US Swim Partnership - - -
Roland A Stinski - - -
Totals 1,474,324$ 9.41 %
Source: Hennepin County Auditor/Treasurer Department
Tax Capacity
2014
Percent
of Total
-132-
Tax
Capacity Rank
155,250$ 2 0.89 %
141,250 5 0.81
- - -
147,763 4 0.84
- - -
- - -
- - -
- - -
- - -
- - -
348,051 1 1.99
152,275 3 0.87
139,250 6 0.79
129,250 7 0.74
119,250 8 0.68
111,250 9 0.63
109,250 10 0.62
1,552,839$ 8.86 %
Tax Capacity
2005
Percent
of Total
-133-
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INTENTIONALLY
-134-
CITY OF NEW HOPE, MINNESOTA
STATISTICAL SECTION (UNAUDITED)
PROPERTY TAX LEVIES AND COLLECTIONS
LAST TEN FISCAL YEARS
(1)
Collection Collection
Fiscal Total of Current in subsequent Total
Year Levy Year's Levy years Collections
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 83,730 7,706,733 100.00
2007 8,093,813 7,984,889 98.65 107,241 8,092,130 99.98
2008 8,452,126 8,343,629 98.72 108,497 8,452,126 100.00
2009 8,457,346 8,382,201 99.11 75,145 8,457,346 100.00
2010 9,092,711 8,983,224 98.80 109,487 9,092,711 100.00
2011 9,228,730 9,063,615 98.21 164,950 9,228,565 100.00
2012 9,228,730 9,102,355 98.63 109,227 9,211,582 99.81
2013 9,570,808 9,429,858 98.53 82,307 9,512,165 99.39
2014 9,717,970 9,619,447 98.99 - 9,619,447 98.99
Source: Hennepin County Auditor/Treasurer Department
(1) Includes state paid property tax credits.
Collected to Levy
Percent
Percentage of Total
of Levy Collections
-135-
CITY OF NEW HOPE, MINNESOTA
STATISTICAL SECTION (UNAUDITED)
RATIOS OF OUTSTANDING DEBT BY TYPE
LAST TEN FISCAL YEARS
General Special Tax Lease
Fiscal Obligation Assessment Increment Revenue Revenue
Year Bonds Bonds Bonds Bonds Bonds
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
2012 1,120,000 - 8,230,000 3,505,000 2,033,000
2013 1,000,729 - 8,065,761 3,505,000 2,723,628
2014 863,620 - 4,066,223 3,505,000 2,352,553
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 143 for personal income and population data.
Governmental Activities Business-type Activities
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Total
Primary Per
Government Capita
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 1.04 562
14,888,000 1.25 717
15,295,118 1.24 732
10,787,396 0.85 516
Income
of Personal
Percentage
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CITY OF NEW HOPE, MINNESOTA
STATISTICAL SECTION (UNAUDITED)
RATIOS OF GENERAL BONDED DEBT OUTSTANDING
LAST TEN FISCAL YEARS
Less
Amounts
General Available in Net
Fiscal Obligation Debt Service Bonded Per
Year Bonds Funds Debt Capita
2005 11,355,000$ 6,383,506$ 4,971,494$ 0.380 %239
2006 9,930,000 6,294,149 3,635,851 0.255 174
2007 8,120,000 5,992,108 2,127,892 0.135 102
2008 7,010,000 6,571,884 438,116 0.026 21
2009 5,930,000 6,450,295 (520,295) (0.030) (25)
2010 6,660,000 4,288,603 2,371,397 0.137 117
2011 5,655,000 465,243 5,189,757 0.319 253
2012 9,350,000 4,222,494 5,127,506 0.341 247
2013 9,066,490 345,010 8,721,480 0.606 417
2014 4,929,843 614,161 4,315,682 0.321 206
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 143 for population data.
Percentage
See Tax Capacity, Market Value and Estimated Actual Value of Taxable Property on page 128 for property value data.
of Estimated
Actual Value
of Taxable
Property
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CITY OF NEW HOPE, MINNESOTA
STATISTICAL SECTION (UNAUDITED)
COMPUTATION OF DIRECT AND OVERLAPPING DEBT
DECEMBER 31, 2014
City's
Outstanding Share
Debt of Debt
Direct debt
City of New Hope (1)4,929,843$ 100.00 %4,929,843$
Overlapping debt
Hennepin County 1,118,210,000$ 1.06 %11,853,026$
Independent School District #281, Robbinsdale 155,710,000 20.99 32,683,529
Metropolitan Council 1,724,004,856 0.54 9,309,626
Hennepin Region RR Authority 36,205,000 1.45 524,973
Three Rivers Park District 66,945,000 1.45 970,703
Total overlapping debt 3,101,074,856$ 1.78 %55,341,856$
Total direct and overlapping debt 3,106,004,699$ 1.94 %60,271,699$
(1) Excludes debt payable from tax increment revenue and enterprise revenue.
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.
District *
Percentage
Applicable to
Source : Assessed value data used to estimate applicable percentages and outstanding debt data for overlapping entities was provided
by Hennepin County.
* 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.
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CITY OF NEW HOPE, MINNESOTA
STATISTICAL SECTION (UNAUDITED)
LEGAL DEBT MARGIN INFORMATION
LAST TEN FISCAL YEARS
2005 2006 2007 2008
Debt limit 28,461,664$ 31,426,114$ 33,849,438$ 52,524,234$
Total net debt applicable to limit 892,849 191,516 108,094 72,562
Legal debt margin 27,568,815$ 31,234,598$ 33,741,344$ 52,451,672$
Total net debt applicable to the limit
as a percentage of debt limit 3.14%0.61%0.32%0.14%
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.
Fiscal Year
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2009 2010 2011 2012 2013 2014
51,967,071$ 48,774,078$ 45,017,103$ 39,899,385$ 36,715,865$ 37,058,019$
37,561 1,246,878 1,072,678 970,908 839,948 696,627
51,929,510$ 47,527,200$ 43,944,425$ 38,928,477$ 35,875,917$ 36,361,392$
0.07%2.56%2.38%2.43%2.29%1.88%
Taxable market value 1,235,267,314$
Debt limit (3 percent of market value)37,058,019$
Debt applicable to limit
General obligation bonds 863,620
Less: amount available in
debt service funds (166,993)
Total net debt applicable to limit 696,627
Legal debt margin 36,361,392$
Fiscal Year
Legal Debt Margin Calculation for Fiscal Year 2014
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CITY OF NEW HOPE, MINNESOTA
STATISTICAL SECTION (UNAUDITED)
PLEDGED REVENUE COVERAGE
LAST TEN FISCAL YEARS
(1)(2)Net
Fiscal Gross Operating Revenue
Year Revenues Expenses Available Principal Interest
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
2012 7,676,193 6,493,865 1,182,328 334,000 162,686 238.04
2013 7,901,855 6,573,932 1,327,923 344,000 98,588 300.04
2014 7,887,948 7,270,310 617,638 371,000 103,685 130.12
(1) Gross revenues include interest and other nonoperating revenues.
(2) Operating expenses exclude depreciation.
(3) Revenues and expenses include the Storm Water, Water Utility, Sewer Utility, and Ice Arena funds.
Note: Details regarding the City's outstanding debt can be found in the notes to the financial statements.
Coverage
Revenue Bonds (3)
Debt Service
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Per Capita Total
Fiscal Personal Personal Median School
Year Population (1)Income (2)Income (3)Age (4)Enrollment (5)
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 39.4 11,839 7.0
2011 20,486 54,008 1,106,407,888 39.4 11,804 5.6
2012 20,764 57,476 1,193,431,664 39.4 12,126 4.8
2013 20,904 58,898 1,231,203,792 39.4 12,126 4.0
2014 20,904 60,601 1,266,803,304 39.4 12,390 2.9
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.
(1) Population was estimated by the City Planning and Development Department for fiscal 2003-2005. Other fiscal years
CITY OF NEW HOPE, MINNESOTA
DEMOGRAPHIC AND ECONOMIC STATISTICS
LAST TEN FISCAL YEARS
Unemployment
Rate (6)
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CITY OF NEW HOPE, MINNESOTA
Employees Rank
Independent School District No. 281 1,900 1 18.34 %
Independent School District No. 287 868 2 8.38
North Ridge Care Center 695 3 6.71
Saint Therese Home of New Hope 689 4 6.65
Perrigo Company 333 5 3.21
Coborn's Delivers 240 6 2.32
Liberty Diversified International 200 7 1.93
Dakota Growers Pasta 150 8 1.45
Waymouth Farms, Inc.150 9 1.45
Parker - Hannifin Oildyne Division 142 10 1.37
Navarre Corporation - -
Total employment for top 10 employers 5,367 51.81 %
Total City employment 10,360
Source: Minnesota Department of Employment and Economic Development.
(1) Information for nine years ago was not available, 2006 was the first year available.
of Total City
PRINCIPAL EMPLOYERS
CURRENT YEAR AND NINE YEARS AGO (1)
Employer Employment
2014
Percentage
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Employees Rank
1,930 1 17.37 %
900 2 8.10
539 3 4.85
277 5 2.49
250 6 2.25
173 9 1.56
244 7 2.20
184 8 1.66
170 10 1.53
500 4 4.50
%5,167 46.50 %
11,112
Percentage
of Total City
Employment
2006
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CITY OF NEW HOPE, MINNESOTA
FULL-TIME EQUIVALENT CITY GOVERNMENT EMPLOYEES BY FUNCTION
LAST TEN FISCAL YEARS
2005 2006 2007 2008
General government 18 19 21 18
Public safety
Police
Officers 28 27 30 31
Civilians 6 6 7 7
Public works 21 21 23 23
Culture and recreation 9 9 9 8
Total 82 82 90 87
Source: Various City departments.
Function
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2009 2010 2011 2012 2013 2014
18 15 15 15 16 14
31 30 31 30 31 33
7 7 6 7 7 7
21 22 24 24 24 24
8 8 7 6 7 7
85 82 83 82 85 85
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THIS PAGE IS LEFT BLANK
INTENTIONALLY
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CITY OF NEW HOPE, MINNESOTA
OPERATING INDICATORS BY FUNCTION
LAST SEVEN FISCAL YEARS
2008 2009 2010 2011 2012 2013 2014
Function
Public works
Street resurfacing (miles)2 2 2 4 - - -
Potholes repaired 150 349 734 648 687 600 1,330
Culture and recreation
Program registration - adults 3,874 3,313 3,796 5,271 5,598 4,565 3,121
Program registration - youth 5,747 6,360 5,287 5,323 7,442 5,924 5,734
Attendance at sponsored events 140,600 139,318 137,199 146,305 148,966 144,000 122,478
Golf Course
Rounds of golf at the Municipal course 22,900 23,917 21,686 18,788 19,568 16,782 16,431
Ice Arena
Hours of ice time rental 3,905 4,027 3,980 3,903 3,558 3,739 3,734
Water
Water main breaks 33 37 19 32 26 30 27
Average daily consumption (thousands of gallons)2,003 1,921 1,746 1,712 1,828 1,682 1,571
Sewer
Average daily treatment (thousands of gallons)2,360 1,740 1,895 2,253 2,189 1,500 2,200
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.
Function
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CITY OF NEW HOPE, MINNESOTA
CAPITAL ASSET STATISTICS BY FUNCTION
LAST TEN FISCAL YEARS
2005 2006 2007 2008
Function
Public Safety
Police stations 1 1 1 1
Fire stations 3 3 3 3
Public Works
City streets (miles)64.0 64.0 64.0 64.0
State and County streets (miles)8.5 8.5 8.5 8.5
Sidewalks (miles)26.4 26.4 26.4 26.4
Street lights 580.0 580.0 580.0 580.0
Railroad bridges 2.0 2.0 2.0 2.0
Pedestrian bridges 4.0 4.0 4.0 4.0
Culture and recreation
Parks 23 23 23 23
Swimming pools
Olympic 1 1 1 1
Recreational 1 1 1 1
Outdoor theatre 1 1 1 1
Tennis courts 17 17 17 17
Water
Water main (miles)63 63 63 63
Fire hydrants 690 690 690 690
Maximum daily capacity (thousands of gallons)21,000,000 21,000,000 21,000,000 21,000,000
Sewer
Sanitary sewer main (miles)74 74 74 74
Storm sewer lines (miles)56 56 56 56
Ice Arenas 1 1 1 1
Golf courses 1 1 1 1
Source: Various City departments.
Note: No capital asset indicators are available for the general government function.
Function
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2009 2010 2011 2012 2013 2014
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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