2015 CAFR
CITY OF NEW HOPE
NEW HOPE, MINNESOTA
COMPREHENSIVE ANNUAL FINANCIAL REPORT
FOR THE YEAR ENDED
DECEMBER 31, 2015
CITY OF NEW HOPE
HENNEPIN COUNTY, MINNESOTA
COMPREHENSIVE ANNUAL FINANCIAL REPORT
FOR THE YEAR ENDED
DECEMBER 31, 2015
KIRK MCDONALD - CITY MANAGER
PREPARED BY: DEPARTMENT OF FINANCE
Member GFOA of U.S. and Canada
CITY OF NEW HOPE, MINNESOTA
COMPREHENSIVE ANNUAL FINANCIAL REPORT
TABLE OF CONTENTS
FOR THE YEAR ENDED DECEMBER 31, 2015
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 Employer’s Share of Public Employees Retirement Association Net Pension Liability -
General Employees Retirement Fund 92
Schedule of Employer’s Public Employees Retirement Association Contributions -
General Employees Retirement Fund 92
Schedule of Employer’s Share of Public Employees Retirement Association Net Pension Liability -
Public Employees Police and Fire Fund 92
Schedule of Employer’s Public Employees Retirement Association Contributions -
Public Employees Police and Fire Fund 93
Schedule of Employer’s Funding Progress for Other Post-Emp loyment Benefit Plan 93
Combining and Individual Fund Financial Statements and Schedules
Nonmajor Governmental Funds
Combining Balance Sheet 98
Combining Statement of Revenues, Expenditures and Changes in Fund Balances 999
Nonmajor Special Revenue Funds
Subcombining Balance Sheet 102
Subcombining Statement of Revenues, Expenditures and Changes in Fund Balances 103
Schedule of Revenues, Expenditures, and Changes in Fund Balances - Budget and Actual
Solid Waste Management Fund 104
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CITY OF NEW HOPE, MINNESOTA
COMPREHENSIVE ANNUAL FINANCIAL REPORT
TABLE OF CONTENTS - CONTINUED
FOR THE YEAR ENDED DECEMBER 31, 2015
Page No.
Combining and Individual Fund Financial Statements and Schedules - Continued
Nonmajor Capital Projects Funds
Subcombining Balance Sheet 106
Subcombining Statement of Revenues, Expenditures and Changes in Fund Balances 107
General Fund
Schedule of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual 109
Internal Service Funds
Combining Statement of Net Position 116
Combining Statement of Revenues, Expenses and Changes in Net Position 117
Combining Statement of Cash Flows 118
Agency Funds
Combining Statement of Fiduciary Net Position 119
Statement of Changes in Assets and Liabilities 120
STATISTICAL SECTION (UNAUDITED)
Financial Trends
Summary Financial Report
Revenues and Expenditures for General Operations - Governmental Funds 125
Net Position by Component 126
Changes in Net Position 128
Governmental Activities Tax Revenues by Source 133
Fund Balances of Governmental Funds 134
Changes in Fund Balances of Governmental Funds 136
General Government Tax Revenues by Source 139
Revenue Capacity
Tax Capacity, Market Value and Estimated Actual Value of Taxable Property 140
Property Tax Capacity Rates - Direct and Overlapping Governments 142
Principal Property Taxpayers 144
Property Tax Levies and Collections 147
Debt Capacity
Ratios of Outstanding Debt by Type 148
Ratios of General Bonded Debt Outstanding 150
Computation of Direct and Overlapping Debt 151
Legal Debt Margin Information 152
Pledged Revenue Coverage 154
Demographic and Economic Information
Demographic and Economic Statistics 155
Principal Employers 156
Operating Information
Full-Time Equivalent City Government Employees by Function 158
Operating Indicators by Function 161
Capital Asset Statistics by Function 162
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INTRODUCTORY SECTION
CITY OF NEW HOPE
NEW HOPE, MINNESOTA
FOR THE YEAR ENDED
DECEMBER 31, 2015
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May 17, 2016
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, 2015, 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 20,812. 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 490 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 2015. 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 2015, $33,976,062 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 2015:
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 is geared towards families, with incomes at or below 60% of the
area median income. Construction was completed in August 2015, and the building is 100% occupied.
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 received all necessary approvals, including
the rezoning of the property, and final plat subdivision of the land. They are currently under construction to complete the 60-unit
development by 2018.
The Gates of New Hope
The owners of the property received 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 complete and the building is 100%
occupied.
Park Place Storage
The owners of the property received approval of a conditional use permit to convert an existing warehouse space into mini storage.
The units are available for purchase. Some exterior renovations to the building were also approved, and construction of all
improvements is underway.
Mayflower Properties
The owners of the property at 9300 – 52nd Avenue received approval of a conditional use permit to convert an existing warehouse
space into self storage.
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
includes a gas station with a convenience store. Construction is complete and the store opened in late Fall of 2015.
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North Memorial Clinic
In conjunction with the Hy-Vee development, Hy-Vee marketed a third lot in the development to North Memorial Clinic, who
finished the construction of a new 14,500 square foot facility. The facility is now open to customers.
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 approximately $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.
Alatus Development
The City entered into a Preliminary Development Agreement with Alatus, LLC, to construct a 183-unit luxury apartment building
located at 8400 Bass Lake Road. The City Council has approved the land use requests for the property, which include a preliminary
and final plat, a rezoning of the property, and a site plan review. The City will continue to work with the developer on this potential
$38 million project to finalize the purchase and development agreement.
Housing
The City's commitment to maintaining its housing stock is supported through a variety of cooperative projects and programs.
Approximately $5,790,911 was reinvested in the City's housing stock in 2015 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 2015 continued the expenditure of previously allocated CDBG funds.
ii. The city continued to operate their scattered site housing program by acquiring multiple properties for
demolition and new construction. To date, the Economic Development Authority has acquired six
properties, resulting in the creation of nine lots. The lots purchased by the city are located at 6059 W.
Broadway, 5431 Virginia Ave., 9121 – 62nd Ave., 4415 Nevada Ave., 6065 Louisiana Ave., and
4511Boone Ave. Three of the lots in question were large enough to split into two buildable lots. Four lots
were sold to developers in 2015 for the construction of new single-family, owner-occupied homes valued
between $225,000 and $290,000.
2. Housing maintenance programs:
a. Code compliance inspections - 1,751 inspections completed in 2015.
b. Rental housing program and inspections:
iii. 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.
iv. A total of 539 single family rental units are registered with the City.
v. A total of 3,563 multi-family rental units are registered with the City.
b. Multifamily Property Manager's Association - quarterly meetings.
c. 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.
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In 2015, several park projects took place including the replacement of the playground and trail located at Meadow Lake Park,
improvements to the softball field and trails at Victory Park, the tennis courts at Hidden Valley were resurfaced and Buckthorn
removal was done in several parks. The property at 4424 Nevada Avenue North was re-zoned as park land and became part of Fred
Sims Park. Staff worked with students from Hennepin Technical College to add native planting areas to the newly acquired property.
At the outdoor theatre, the popular Movies in the Park continued and the musical ran for three weekends. The outdoor swimming pool
continues to be rented by local swim teams for practices during non public swim time. In 2015, two new shade umbrellas for the pool
deck were added and additional lounge chairs were purchased. 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 2015, the majority of Phase 1 of the HVAC repairs for the south rink took place, the- scoreboard in the north rink was
replaced, a skate rental area with 145 pairs of skates was added and repairs were made to the ice arena elevator. 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 2015, a new electronic leader board was added with the New Hope Lions donating the majority of the funds to
the city. In addition, a new fairway unit and rotary mower were both purchased for the golf course.
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 2015 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, 2014. 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
ELECTED AND APPOINTED OFFICIALS
FOR THE YEAR ENDED DECEMBER 31, 2015
Name Title Term Expires
Kathi Hemken Mayor 12/31/16
John Elder Council Member 12/31/18
Andrew Hoffe Council Member 12/31/16
Eric Lammle Council Member 12/31/16
Jonathan London Council Member 12/31/18
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, 2015
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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 accompanying financial statements of the governmental activities, the business-type
activities, each major fund, and the aggregate remaining fund information of the City of New Hope,
Minnesota (the City) as of and for the year ended December 31, 2015, 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, 2015, 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 fund for the year then ended, in accordance
with accounting principles generally accepted in the United States of America.
EMPHASIS OF MATTER
As described in Note 5 of the notes to basic financial statements, the City has implemented Governmental
Accounting Standards Board (GASB) Statement No. 68, Accounting and Financial Reporting for
Pensions—an amendment of GASB Statement No. 27, and GASB Statement No. 71, Pension Transition
for Contributions Made Subsequent to the Measurement Date—an amendment of GASB Statement No. 68,
during the year ended December 31, 2015. Our opinion is not modified with respect to this matter.
OTHER MATTERS
Required Supplementary Information
Accounting principles generally accepted in the United States of America require that the Management’s
Discussion and Analysis and other required supplementary information (RSI), 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 GASB, who considers it to be an essential part of
financial reporting for placing the basic financial statements in an appropriate operational, economic, or
historical context. We have applied certain limited procedures to the RSI in accordance with auditing
standards generally accepted in the United States of America, which consisted of inquiries of
management about the methods of preparing the information and comparing the information for
consistency with management’s responses to our inquiries, the basic financial statements, and other
knowledge we obtained during our audit of the basic financial statements. We do not express an opinion
or provide any assurance on the information because the limited procedures do not provide us with
sufficient evidence to express an opinion or provide any assurance.
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
financial 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 financial 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 information is 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.
(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 17, 2016
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 17, 2016
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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, 2015. 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 beginning unrestricted government-wide net position was decreased by $6,888,265 to recognize the effects of GASB
Statement No. 68 implementation.
• The assets and deferred outflows of resources of the City exceeded its liabilities and deferred inflows of resources at the close
of the most recent fiscal year by $63,980,368 (net position). Of this amount, $13,797,746 (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 $1,258,988. This was primarily a result of an excess of expenses over revenues.
• As of the close of the current fiscal year, the City’s governmental funds reported combined ending fund balances of
$24,851,066, an increase of $865,519 in comparison with the prior year. Approximately 23.5 percent of this total amount
($5,837,291) 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 $6,063,647 or 51.0 percent of total
General fund 2015 expenditures and transfers out.
• The City’s total noncurrent liabilities increased by $15,926,056 (137.9 percent) during the current fiscal year. The key factors
of this increase were the issuance of the 2015A and 2015B bonds and the implementation of GASB 68 pension standard
during 2015.
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 deferred outflows of resources and liabilities and
deferred inflows of resources, with the difference between the four 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 pension and other postemployment
benefits to its employees. Required supplementary information can be found starting on page 92 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 98 of this report.
-21-
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 and deferred outflows of resources exceeded liabilities and deferred inflows of resources by $63,980,368 at the close of the
most recent fiscal year.
A portion of the City’s net position (68.2 percent) reflects its investment in capital assets (e.g., land, buildings, vehicles and
equipment); less any related debt used to acquire those assets that is still outstanding. The City uses these capital assets to provide
services to citizens; consequently, these assets are not available for future spending. Although the City’s investment in its capital
assets is reported net of related debt, it should be noted that the resources needed to repay this debt must be provided from other
sources, since the capital assets themselves cannot be used to liquidate these liabilities.
City of New Hope’s Summary of Net Position
Increase Increase
2015 2014 (Decrease)2015 2014 (Decrease)
Assets
Current and other assets 37,332,307$ 34,320,365$ 3,011,942$ 2,861,435$ 4,002,828$ (1,141,393)$
Capital assets, net of depreciation 31,451,906 27,169,525 4,282,381 23,266,980 20,614,886 2,652,094
Total assets 68,784,213 61,489,890 7,294,323 26,128,415 24,617,714 1,510,701
Deferred outflows of resources
Deferred pension resources 1,254,526 - 1,254,526 83,083 - 83,083
Liabilities
Other liabilities 2,731,275 718,579 2,012,696 359,801 1,713,442 (1,353,641)
Noncurrent liabilities 17,648,905 5,654,730 11,994,175 9,825,113 5,893,232 3,931,881
Total liabilities 20,380,180 6,373,309 14,006,871 10,184,914 7,606,674 2,578,240
Deferred inflows of resources
Deferred pension resources 1,568,392 - 1,568,392 136,383 - 136,383
Net position
Net investment in capital assets 27,549,276 26,305,906 1,243,370 16,087,559 14,757,333 1,330,226
Restricted 5,917,848 5,680,117 237,731 627,939 455,000 172,939
Unrestricted 14,623,043 23,130,558 (8,507,515) (825,297) 1,798,707 (2,624,004)
Total net position 48,090,167$ 55,116,581$ (7,026,414)$ 15,890,201$ 17,011,040$ (1,120,839)$
Governmental Activities Business-type Activities
An additional portion of the City’s net position, $6,545,787, represents resources that are subject to external restrictions on how they
may be used. The remaining balance of unrestricted net position, $13,797,746, may be used to meet the City’s ongoing obligations to
citizens and creditors.
At the end of the current fiscal year, the City is able to report a positive balance in all three categories of net position for the
governmental activities but not for the business-type activities, which reported a deficit balance in unrestricted net position. The
increase in assets was a result of the capital project activity, and the increase in noncurrent liabilities was a result of the issuance of
debt and recording the pension liability related to GASB 68.
-22-
The following table indicates the changes in net position for the City’s governmental and business-type activities:
City of New Hope’s Changes in Net Position
Increase Increase
2015 2014 (Decrease)2015 2014 (Decrease)
Revenues
Program revenues
Charges for services 2,215,536$ 2,124,410$ 91,126$ 8,389,301$ 8,151,244$ 238,057$
Operating grants and contributions 845,517 1,013,058 (167,541) 33,032 444,484 (411,452)
Capital grants and contributions 460,537 47,917 412,620 194,590 11,469 183,121
General revenues
Taxes
Property taxes 10,131,759 9,732,776 398,983 - - -
Tax increments 430,879 537,871 (106,992) - - -
Franchise taxes 442,556 438,541 4,015 - - -
Grants and contributions not
restricted to specific programs 600,030 179,537 420,493 - - -
Unrestricted investment earnings 331,417 324,498 6,919 35,700 31,714 3,986
Total revenues 15,458,231 14,398,608 1,059,623 8,652,623 8,638,911 13,712
Expenses
General government 1,700,133 1,976,377 (276,244) - - -
Public safety 7,258,504 6,795,836 462,668 - - -
Public works 4,229,077 2,467,618 1,761,459 - - -
Culture and recreation 2,223,152 2,145,224 77,928 - - -
Economic development 655,093 1,704,010 (1,048,917) - - -
Interest on long-term debt 269,284 140,321 128,963 - - -
Sewer utility - - - 2,458,724 1,976,864 481,860
Water utility - - - 4,584,929 4,635,686 (50,757)
Golf course - 291,695 304,059 (12,364)
Ice arena - - - 880,581 877,826 2,755
Storm water - - - 713,218 558,160 155,058
Street lighting - - - 105,452 99,560 5,892
Total expenses 16,335,243 15,229,386 1,105,857 9,034,599 8,452,155 582,444
Changes in net position before transfers (877,012) (830,778) (46,234) (381,976) 186,756 (568,732)
Transfers - capital assets (47,796) - (47,796) 47,796 - 47,796
Transfers - internal activities 116,000 114,000 2,000 (116,000) (114,000) (2,000)
Change in net position (808,808) (716,778) (92,030) (450,180) 72,756 (522,936)
Net position, January 1 as restated*48,898,975 55,833,359 (6,934,384) 16,340,381 16,938,284 (597,903)
Net position, December 31 48,090,167$ 55,116,581$ (7,026,414)$ 15,890,201$ 17,011,040$ (1,120,839)$
* GASB Statement No. 68 was implemented for the year ended December 31, 2015 and required a $6,888,265 restatement of beginning net
position. Prior year amounts were not restated causing a variance in ending net position at December 31, 2014 and beginning net position on
January 1, 2015. See financial statement note 5.
Governmental Activities Business-type Activities
The increase in public works expenses were a result of capital outlay related to street and other capital improvement projects. The
decrease in economic development expenses were a result of a prior year loss on a sale of capital assets for economic development
purposes. The increase in capital grants and contributions were a result of significant county aids received for projects and newly
certified special assessments.
-23-
Governmental activities. Governmental activities decreased the City’s net position by $808,808, thereby accounting for 64.2 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
$8,000,000
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
14.3%Operating grants and
contributions
5.5%
Capital grants and
contributions
3.0%
Property taxes
65.5%
Tax increments
2.8%
Franchise taxes
2.9%
Grants and
contributions
unrestricted
3.9%
Unrestricted investment
earnings
2.1%
-24-
Business-type activities. The net position of business-type activities decreased by $450,180. This decrease was primarily the result of
total net expenses from the programs of $417,676, particularly with water utility operations of $735,563.
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
97.0%
Operating grants and
contributions
0.4%
Capital grants and
contributions
2.2%
Unrestricted
investment earnings
0.4%
-25-
Financial Analysis of the Government’s Funds
As noted earlier, the City uses fund accounting to ensure and demonstrate compliance with finance-related legal requirements.
Governmental funds. The focus of the City’s governmental funds is to provide information on near-term inflows, outflows, and
balances of spendable resources. Such information is useful in assessing the City’s financing requirements. In particular, unassigned
fund balance may serve as a useful measure of a government’s net resources available for spending at the end of the fiscal year.
As of the end of the current fiscal year, the City’s governmental funds had combined ending fund balances of $24,851,066, an increase
of $865,519 in comparison with the prior year. Approximately 23.5 percent of this total amount, $5,837,291, 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 ($16,765), 2) restricted ($8,069,238),
3) committed ($5,431,288), or 4) assigned ($5,496,484). For further classification refer to Note 3F on page 78 of this report.
Activity in the City’s major funds is discussed below:
Increase
2015 2014 (Decrease)
General 6,080,412$ 5,821,294$ 259,118$
Economic Development Authority 5,236,971$ 4,581,009$ 655,962$
The increase in fund balance is primarily due to transfers in from the HRA construction fund.
HRA Construction 5,612,741$ 5,399,698$ 213,043$
Street Infrastructure 768,047$ 3,264,052$ (2,496,005)$
Temporary Financing 2,966,752$ 3,028,957$ (62,205)$
HRA Bonds (226,356)$ (134,792)$ (91,564)$
The decrease in fund balance is a result of bond payments in excess of current year revenues.
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 51.0 percent of total 2015 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 transfers in from the HRA Bond fund.
This fund accounts for capital outlay expenditures related to street infrastructure. The decrease is a result of project costs exceeding current year
revenues due to completion of projects started in prior years.
The Temporary financing fund is used for general capital improvements. The decrease is a result of capital outlay expenditures exceeding current
year revenue.
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 $209,839. 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. Revenues provided positive budget variances and expenditures
provided positive budget variances. Actual revenues were over budget by $97,110, and expenditures were under budget by $437,008.
In addition the General fund transfers in were $25,000 less 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 2015.
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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, 2015, was
$54,718,886 (net of accumulated depreciation). This investment in capital assets includes land, buildings and system improvements,
vehicles and equipment, park facilities, roads, highways, and bridges. The total increase in the City’s investment in capital assets for
the current fiscal year was 14.5 percent.
Major capital asset events during the current fiscal year consisted of:
• Multiple vehicle and equipment purchases were made for a total of $1,099,119.
• Several capital projects were completed and started in 2015, including the completion of the 2012 and 2013 Street
Infrastructure projects and lift station projects.
City of New Hope’s Capital Assets
(net of depreciation)
Increase Increase
2015 2014 (Decrease)2015 2014 (Decrease)
Land 994,268$ 994,268$ -$ 485,042$ 485,042$ -$
Buildings and structures 3,450,327 3,719,356 (269,029) 6,882,979 6,904,337 (21,358)
Vehicles and equipment 2,759,375 2,726,704 32,671 664,159 477,647 186,512
Improvements other than
buildings 18,576,435 13,579,271 4,997,164 12,385,811 9,815,400 2,570,411
Construction in progress 5,671,501 6,149,926 (478,425) 2,848,989 2,932,460 (83,471)
Total 31,451,906$ 27,169,525$ 4,282,381$ 23,266,980$ 20,614,886$ 2,652,094$
Business-type ActivitiesGovernmental Activities
Additional information on the City’s capital assets can be found in Note 3C starting on page 69 of this report.
Long-term debt. At the end of the current fiscal year, the City had total bonded debt outstanding of $20,224,302. Of this amount
$2,795,000 will be paid from general property taxes and $8,150,000 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 deficit of $47,717, of which $178,639 is restricted for the payment of debt
service and a deficit of $226,356 is unassigned. The City has intentionally shifted the philosophy for financing major street
improvements away from debt financing to the pay-as-you-go philosophy. The City established the Street and Park Infrastructure
capital projects funds in 2001 with dedicated portions of the property tax levy, thereby eliminating this type of debt issuance.
City of New Hope’s Outstanding Debt
Increase Increase
2015 2014 (Decrease)2015 2014 (Decrease)
G.O. bonds and certificates 2,898,167$ 863,620$ 2,034,547$ 1,831,607$ -$ 1,831,607$
G.O. tax increment bonds 8,250,291 4,066,223 4,184,068 1,587,602 - 1,587,602
Lease revenue bonds - - - 3,505,000 3,505,000 -
G.O. revenue bonds and notes - - - 2,151,635 2,352,553 (200,918)
Pension liability 5,694,171 - 5,694,171 707,623 - 707,623
Compensated absences 537,257 493,943 43,314 - - -
Other postemployment benefits 269,019 230,944 38,075 41,646 35,679 5,967
Total 17,648,905$ 5,654,730$ 11,994,175$ 9,825,113$ 5,893,232$ 3,931,881$
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 73 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 2016 and beyond.
• The overall tax levy had a 7.04 percent increase in 2016. 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 2015 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.
-28-
GOVERNMENT-WIDE FINANCIAL STATEMENTS
CITY OF NEW HOPE
NEW HOPE, MINNESOTA
FOR THE YEAR ENDED
DECEMBER 31, 2015
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CITY OF NEW HOPE, MINNESOTA
STATEMENT OF NET POSITION
DECEMBER 31, 2015
Governmental Business-type
Activities Activities Total
ASSETS
Cash and temporary investments 26,553,840$ 3,005,790$ 29,559,630$
Cash held with fiscal agent - 627,939 627,939
Receivables
Taxes 191,871 - 191,871
Accrued interest 73,579 - 73,579
Accounts 522,933 1,091,259 1,614,192
Loans 364,029 - 364,029
Special assessments 390,974 216,307 607,281
Internal balances 2,374,798 (2,374,798) -
Due from other governments 208,149 86,058 294,207
Inventories 95,708 40,371 136,079
Prepaid items 16,765 - 16,765
Land held for resale 4,462,930 - 4,462,930
Investment in joint ventures 2,076,731 168,509 2,245,240
Capital assets
Land and construction in progress 6,665,769 3,334,031 9,999,800
Depreciable assets (net of accumulated deprecation)24,786,137 19,932,949 44,719,086
TOTAL ASSETS 68,784,213 26,128,415 94,912,628
DEFERRED OUTFLOWS OF RESOURCES
Deferred pension resources 1,254,526 83,083 1,337,609
LIABILITIES
Accrued salaries payable 125,647 16,201 141,848
Accounts and contracts payable 2,460,129 103,575 2,563,704
Due to other governments 47,662 204,194 251,856
Accrued interest payable 91,294 35,831 127,125
Deposits payable 6,543 - 6,543
Noncurrent liabilities
Due within one year 468,726 202,000 670,726
Due in more than one year 17,180,179 9,623,113 26,803,292
TOTAL LIABILITIES 20,380,180 10,184,914 30,565,094
DEFERRED INFLOWS OF RESOURCES
Deferred pension resources 1,568,392 136,383 1,704,775
NET POSITION
Net investment in capital assets 27,549,276 16,087,559 43,636,835
Restricted for
Economic development 5,612,741 - 5,612,741
Debt service 171,932 627,939 799,871
Public safety police expenses 127,381 - 127,381
Ice arena 5,794 - 5,794
Unrestricted 14,623,043 (825,297) 13,797,746
TOTAL NET POSITION 48,090,167$ 15,890,201$ 63,980,368$
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, 2015
Operating Capital
Charges for Grants and Grants and
Expenses Services Contributions Contributions
Governmental activities
General government 1,700,133$ 254,333$ 191,297$ -$
Public safety 7,258,504 1,073,079 329,336 -
Public works 4,229,077 219,634 190,051 370,537
Culture and recreation 2,223,152 668,490 40,613 90,000
Economic development 655,093 - 83,695 -
Interest on long-term debt 269,284 - 10,525 -
Total governmental activities 16,335,243 2,215,536 845,517 460,537
Business-type activities
Sewer utility 2,458,724 2,468,638 - -
Water utility 4,584,929 3,777,108 20,557 51,701
Golf course 291,695 287,056 - -
Ice arena 880,581 745,886 12,475 112,013
Storm water 713,218 981,723 - 30,876
Street lighting 105,452 128,890 - -
Total business-type activities 9,034,599 8,389,301 33,032 194,590
Total 25,369,842$ 10,604,837$ 878,549$ 655,127$
General revenues
Taxes
Property taxes
Tax increments
Franchise taxes
Grants and contributions not restricted to specific programs
Unrestricted investment earnings
Transfers - capital assets
Transfers - internal activities
Total general revenues and transfers
Change in net position
Net position, January 1 as restated (Note 5)
Net position, December 31
The notes to the financial statements are an integral part of this statement.
Functions/Programs
Program Revenues
-32-
Governmental Business-type
Activities Activities Total
(1,254,503)$ -$ (1,254,503)$
(5,856,089) - (5,856,089)
(3,448,855) - (3,448,855)
(1,424,049) - (1,424,049)
(571,398) - (571,398)
(258,759) - (258,759)
(12,813,653) - (12,813,653)
- 9,914 9,914
- (735,563) (735,563)
- (4,639) (4,639)
- (10,207) (10,207)
- 299,381 299,381
- 23,438 23,438
- (417,676) (417,676)
(12,813,653) (417,676) (13,231,329)
10,131,759 - 10,131,759
430,879 - 430,879
442,556 - 442,556
600,030 - 600,030
331,417 35,700 367,117
(47,796) 47,796 -
116,000 (116,000) -
12,004,845 (32,504) 11,972,341
(808,808) (450,180) (1,258,988)
48,898,975 16,340,381 65,239,356
48,090,167$ 15,890,201$ 63,980,368$
Net (Expenses) Revenues
and Changes in Net Position
-33-
FUND FINANCIAL STATEMENTS
CITY OF NEW HOPE
NEW HOPE, MINNESOTA
FOR THE YEAR ENDED
DECEMBER 31, 2015
-35-
CITY OF NEW HOPE, MINNESOTA
BALANCE SHEET
GOVERNMENTAL FUNDS
DECEMBER 31, 2015
9001 9015/9501 9213-9220
Economic
Development HRA
General Authority Construction
ASSETS
Cash and temporary investments 5,919,870$ 1,301,857$ 6,357,260$
Receivables
Taxes 189,459 - 1,128
Accrued interest 73,579 - -
Accounts 115,642 109,562 -
Loans - 364,029 -
Special assessments 16,325 32,821 -
Due from other governments 159,208 - -
Prepaid items 16,765 - -
Due from other funds - 107,525 -
Advances to other funds - 1,680,269 -
Land held for resale - 2,029,768 2,433,162
TOTAL ASSETS 6,490,848$ 5,625,831$ 8,791,550$
LIABILITIES
Accrued salaries payable 87,589$ 3,809$ -$
Accounts and contracts payable 141,794 352,306 1,391,015
Due to other governments 29,865 742 -
Deposits payable 6,543 - -
Due to other funds - - 357,050
Advances from other funds - - 1,430,744
TOTAL LIABILITIES 265,791 356,857 3,178,809
DEFERRED INFLOWS OF RESOURCES
Unavailable revenue - taxes 128,320 - -
Unavailable revenue - special assessments 16,325 32,003 -
TOTAL DEFERRED INFLOWS OF RESOURCES 144,645 32,003 -
FUND BALANCES
Nonspendable 16,765 - -
Restricted - - 5,612,741
Committed - 5,236,971 -
Assigned - - -
Unassigned 6,063,647 - -
TOTAL FUND BALANCES 6,080,412 5,236,971 5,612,741
TOTAL LIABILITIES, DEFERRED INFLOWS
OF RESOURCES, AND FUND BALANCES 6,490,848$ 5,625,831$ 8,791,550$
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
934,516$ 1,371,825$ 21,885$ 4,383,240$ 20,290,453$
- - 1,284 - 191,871
- - - - 73,579
266,785 - - 23,413 515,402
- - - - 364,029
237,387 95,601 - 8,840 390,974
32,378 - - 14,999 206,585
- - - - 16,765
- 696,200 - - 803,725
- 892,987 - - 2,573,256
- - - - 4,462,930
1,471,066$ 3,056,613$ 23,169$ 4,430,492$ 29,889,569$
-$ -$ -$ -$ 91,398$
465,632 - - 17,993 2,368,740
- - - - 30,607
- - - - 6,543
- - 249,525 - 606,575
- - - - 1,430,744
465,632 - 249,525 17,993 4,534,607
- - - - 128,320
237,387 89,861 - - 375,576
237,387 89,861 - - 503,896
- - - - 16,765
- - - 2,456,497 8,069,238
- - - 194,317 5,431,288
768,047 2,966,752 - 1,761,685 5,496,484
- - (226,356) - 5,837,291
768,047 2,966,752 (226,356) 4,412,499 24,851,066
1,471,066$ 3,056,613$ 23,169$ 4,430,492$ 29,889,569$
-37-
CITY OF NEW HOPE, MINNESOTA
RECONCILIATION OF THE BALANCE SHEET
TO THE STATEMENT OF NET POSITION
GOVERNMENTAL FUNDS
DECEMBER 31, 2015
Total fund balances - governmental funds 24,851,066$
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 41,186,405
Less: accumulated depreciation (13,503,779)
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 (10,945,000)
Plus: unamortized bond premium (203,458)
Pension liability (5,463,127)
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 8,940,054
Internal balances for internal services used by business-type activities 1,035,136
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 128,320
Special assessments 375,576
Governmental funds do not report long-term amounts related to pensions
Deferred outflows of pension resources 1,227,399
Deferred inflows of pension resources (1,523,862)
Governmental funds do not report a liability for accrued interest until due and payable.(91,294)
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.2,076,731
Total net position - governmental activities 48,090,167$
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, 2015
9001 9015/9501 9213-9221
Economic
Development HRA
General Authority Construction
REVENUES
Taxes
Property taxes 8,308,447$ 150,000$ -$
Tax increments - - 138,000
Franchise taxes 442,556 - -
Licenses and permits 389,957 - -
Intergovernmental 1,133,965 83,695 -
Charges for services 1,305,517 - 10,525
Fines and forfeitures 232,272 - -
Special assessments 2,846 3,273 -
Investment earnings 47,988 103,400 38,084
Miscellaneous 51,192 - -
TOTAL REVENUES 11,914,740 340,368 186,609
EXPENDITURES
Current
General government 1,683,704 - -
Public safety 6,866,105 - -
Public works 1,112,092 - -
Culture and recreation 1,853,741 - -
Economic development - 498,479 -
Capital outlay
General government 2,447 - -
Public safety 109,277 - -
Public works - - -
Culture and recreation 2,256 - -
Economic development - 33,953 3,478,400
Debt service
Principal - - -
Interest - - 7,464
Bond issuance costs - - 41,996
TOTAL EXPENDITURES 11,629,622 532,432 3,527,860
EXCESS (DEFICIENCY) OF REVENUES
OVER (UNDER) EXPENDITURES 285,118 (192,064) (3,341,251)
OTHER FINANCING SOURCES (USES)
Transfers in 224,000 878,026 1,857,200
Bonds issued - - 2,536,000
Premium on bonds issued - - 39,120
Transfers out (250,000) (30,000) (878,026)
TOTAL OTHER FINANCING SOURCES (USES)(26,000) 848,026 3,554,294
NET CHANGE IN FUND BALANCES 259,118 655,962 213,043
FUND BALANCES, JANUARY 1 5,821,294 4,581,009 5,399,698
FUND BALANCES, DECEMBER 31 6,080,412$ 5,236,971$ 5,612,741$
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
1,217,975$ -$ -$ 468,782$ 10,145,204$
- - 292,879 - 430,879
- - - - 442,556
- - - - 389,957
130,165 - - 11,686 1,359,511
- - - 285,039 1,601,081
- - - 5,679 237,951
3,946 28,352 - - 38,417
30,068 35,125 - 19,451 274,116
- 36,000 - 114,865 202,057
1,382,154 99,477 292,879 905,502 15,121,729
- - - 5,048 1,688,752
- - - - 6,866,105
- - - 216,279 1,328,371
- - - - 1,853,741
- - - - 498,479
- - - - 2,447
- 161,682 - - 270,959
3,878,159 - - - 3,878,159
- - - 538,790 541,046
- - - - 3,512,353
- - 270,000 135,000 405,000
- - 106,168 17,898 131,530
- - 38,775 33,836 114,607
3,878,159 161,682 414,943 946,851 21,091,549
(2,496,005) (62,205) (122,064) (41,349) (5,969,820)
- - - 250,000 3,209,226
- - 1,859,000 2,075,000 6,470,000
- - 28,700 103,519 171,339
- - (1,857,200) - (3,015,226)
- - 30,500 2,428,519 6,835,339
(2,496,005) (62,205) (91,564) 2,387,170 865,519
3,264,052 3,028,957 (134,792) 2,025,329 23,985,547
768,047$ 2,966,752$ (226,356)$ 4,412,499$ 24,851,066$
-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, 2015
Total net change in fund balances - governmental funds 865,519$
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 5,663,963
Depreciation expense (1,259,452)
Costs of assets constructed by governmental funds and contributed to enterprise funds are expensed in the
governmental funds. In the statement of activities however, the amount of the assets is transferred
to the business-type activities.(47,796)
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 405,000
Bond issued (6,470,000)
Premium on bonds issued (171,339)
Amortization of bond premium 17,724
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.(40,871)
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 (13,446)
Special assessments 201,956
Long-term pension activity is not reported in governmental funds
Pension expense 68,868
Direct aid contributions 25,380
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 243,684
Less: the change in internal balances for internal services used by business-type activities (2,488)
Change in net position - governmental activities (808,808)$
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, 2015
Budgeted Amounts Actual Variance with
Original Final Amounts Final Budget
REVENUES
Taxes
Property taxes 8,265,410$ 8,265,410$ 8,308,447$ 43,037$
Franchise taxes 440,000 440,000 442,556 2,556
Licenses and permits 373,584 373,584 389,957 16,373
Intergovernmental 998,755 998,755 1,133,965 135,210
Charges for services 1,228,362 1,228,362 1,305,517 77,155
Fines and forfeitures 366,000 366,000 232,272 (133,728)
Special assessments - - 2,846 2,846
Investment earnings 75,000 75,000 47,988 (27,012)
Miscellaneous 70,519 70,519 51,192 (19,327)
TOTAL REVENUES 11,817,630 11,817,630 11,914,740 97,110
EXPENDITURES
Current
General government 1,724,109 1,724,109 1,683,704 40,405
Public safety 7,024,925 7,024,925 6,866,105 158,820
Public works 1,212,372 1,212,372 1,112,092 100,280
Culture and recreation 1,964,624 1,964,624 1,853,741 110,883
Capital outlay
General government 25,000 25,000 2,447 22,553
Public safety 112,100 112,100 109,277 2,823
Culture and recreation 3,500 3,500 2,256 1,244
TOTAL EXPENDITURES 12,066,630 12,066,630 11,629,622 437,008
EXCESS (DEFICIENCY) OF REVENUES
OVER (UNDER) EXPENDITURES (249,000) (249,000) 285,118 534,118
OTHER FINANCING SOURCES (USES)
Transfers in 249,000 249,000 224,000 (25,000)
Transfers out - - (250,000) (250,000)
TOTAL OTHER FINANCING
SOURCES (USES)249,000 249,000 (26,000) (275,000)
NET CHANGE IN FUND BALANCES - - 259,118 259,118
FUND BALANCES, JANUARY 1 5,821,294 5,821,294 5,821,294 -
FUND BALANCES, DECEMBER 31 5,821,294$ 5,821,294$ 6,080,412$ 259,118$
The notes to the financial statements are an integral part of this statement.
-43-
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, 2015
Actual Variance with
Original Final Amounts Final Budget
REVENUES
Taxes
Property taxes 150,000$ 150,000$ 150,000$ -$
Intergovernmental - - 83,695 83,695
Special assessments 3,000 3,000 3,273 273
Investment income 19,694 19,694 103,400 83,706
TOTAL REVENUES 172,694 172,694 340,368 167,674
EXPENDITURES
Economic development
Current
Personnel services 238,900 238,900 393,829 (154,929)
Supplies 150 150 56 94
Other services and charges 98,332 98,332 104,594 (6,262)
Capital outlay 60,000 60,000 33,953 26,047
TOTAL EXPENDITURES 397,382 397,382 532,432 (135,050)
DEFICIENCY OF REVENUES
UNDER EXPENDITURES (224,688) (224,688) (192,064) 32,624
OTHER FINANCING SOURCES (USES)
Transfers in - - 878,026 878,026
Transfers out (30,000) (30,000) (30,000) -
TOTAL OTHER
FINANCING SOURCES (USES)(30,000) (30,000) 848,026 878,026
NET CHANGE IN FUND BALANCES (254,688) (254,688) 655,962 910,650
FUND BALANCES, JANUARY 1 4,581,009 4,581,009 4,581,009 -
FUND BALANCES, DECEMBER 31 4,326,321$ 4,326,321$ 5,236,971$ 910,650$
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, 2015 DECEMBER 31, 2015
9300 9301 9302 9303
Sewer Utility Water Utility Golf Course Ice Arena
ASSETS
CURRENT ASSETS
Cash and temporary investments -$ 1,364,888$ 86,599$ -$
Cash held with fiscal agent - - - 627,939
Receivables
Accounts 249,190 664,934 - 80,760
Special assessments 132,349 58,343 - -
Due from other governments - 808 - 55,250
Inventories - 32,345 8,026 -
TOTAL CURRENT ASSETS 381,539 2,121,318 94,625 763,949
NONCURRENT ASSETS
Investment in joint ventures - 168,509 - -
Capital assets
Land - - 250,625 -
Buildings and structures - - 973,145 9,823,113
Improvements other than buildings 4,501,965 7,248,978 130,373 -
Vehicles and equipment 495,284 1,392,767 168,676 326,862
Construction in progress 660,872 1,173,247 - -
Less: accumulated depreciation (2,198,916) (2,637,798) (898,138) (3,478,133)
Total capital assets
(net of accumulated depreciation)3,459,205 7,177,194 624,681 6,671,842
TOTAL NONCURRENT ASSETS 3,459,205 7,345,703 624,681 6,671,842
TOTAL ASSETS 3,840,744 9,467,021 719,306 7,435,791
DEFERRED OUTFLOWS OF RESOURCES
Deferred pension resources 25,580 21,568 4,986 21,752
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, 2015
Governmental
Activities -
9304 9305 Internal
Storm Water Street Lighting Totals Service Funds
ASSETS
CURRENT ASSETS
Cash and temporary investments 1,292,276$ 262,027$ 3,005,790$ 6,263,387$
Cash held with fiscal agent - - 627,939 -
Receivables
Accounts 90,818 5,557 1,091,259 7,531
Special assessments 22,834 2,781 216,307 -
Due from other governments 30,000 - 86,058 1,564
Inventories - - 40,371 95,708
TOTAL CURRENT ASSETS 1,435,928 270,365 5,067,724 6,368,190
NONCURRENT ASSETS
Investment in joint ventures - - 168,509 -
Capital assets
Land 234,417 - 485,042 85,647
Buildings and structures - - 10,796,258 3,141,396
Improvements other than buildings 4,891,293 - 16,772,609 -
Vehicles and equipment - - 2,383,589 8,673,838
Construction in progress 1,014,870 - 2,848,989 -
Less: accumulated depreciation (806,522) - (10,019,507) (8,131,601)
Total capital assets
(net of accumulated depreciation)5,334,058 - 23,266,980 3,769,280
TOTAL NONCURRENT ASSETS 5,334,058 - 23,435,489 3,769,280
TOTAL ASSETS 6,769,986 270,365 28,503,213 10,137,470
DEFERRED OUTFLOWS OF RESOURCES
Deferred pension resources 9,197 - 83,083 27,127
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, 2015 DECEMBER 31, 2015
9300 9301 9302 9303
Sewer Utility Water Utility Golf Course Ice Arena
LIABILITIES
CURRENT LIABILITIES
Accrued salaries payable 4,450$ 6,215$ 738$ 4,798$
Accounts and contracts payable 31,395 13,148 3,693 23,007
Due to other governments 7 162,574 68 16,706
Accrued interest payable 5,298 16,227 - 4,790
Due to other funds 219,504 104,282 - 122,889
Compensated absences payable, current portion - - - -
Bonds and notes payable, current portion - 147,000 - -
TOTAL CURRENT LIABILITIES 260,654 449,446 4,499 172,190
NONCURRENT LIABILITIES
Advances from other funds - 892,987 - -
Other postemployment benefits payable 11,738 12,110 2,837 9,319
Pension Liability 217,864 183,695 42,469 185,264
Compensated absences payable - - - -
Bonds and notes payable 744,934 3,367,409 - 3,505,000
TOTAL NONCURRENT LIABILITIES 974,536 4,456,201 45,306 3,699,583
TOTAL LIABILITIES 1,235,190 4,905,647 49,805 3,871,773
DEFERRED INFLOWS OF RESOURCES
Deferred pension resources 41,990 35,404 8,185 35,707
NET POSITION
Net investment in capital assets 3,147,562 4,810,927 624,681 3,166,842
Restricted for debt service - - - 627,939
Unrestricted (558,418) (263,389) 41,621 (244,718)
TOTAL NET POSITION 2,589,144$ 4,547,538$ 666,302$ 3,550,063$
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, 2015
Governmental
Activities -
9304 9305 Internal
Storm Water Street Lighting Totals Service Funds
LIABILITIES
CURRENT LIABILITIES
Accrued salaries payable -$ -$ 16,201$ 34,249$
Accounts and contracts payable 23,765 8,567 103,575 91,389
Due to other governments 24,839 - 204,194 17,055
Accrued interest payable 9,516 - 35,831 -
Due to other funds - - 446,675 -
Compensated absences payable, current portion - - - 53,726
Bonds and notes payable, current portion 55,000 - 202,000 -
TOTAL CURRENT LIABILITIES 113,120 8,567 1,008,476 196,419
NONCURRENT LIABILITIES
Advances from other funds - - 892,987 -
Other postemployment benefits payable 5,642 - 41,646 269,019
Pension Liability 78,331 - 707,623 231,044
Compensated absences payable - - - 483,531
Bonds and notes payable 1,256,501 - 8,873,844 -
TOTAL NONCURRENT LIABILITIES 1,340,474 - 10,516,100 983,594
TOTAL LIABILITIES 1,453,594 8,567 11,524,576 1,180,013
DEFERRED INFLOWS OF RESOURCES
Deferred pension resources 15,097 - 136,383 44,530
NET POSITION
Net investment in capital assets 4,337,547 - 16,087,559 3,769,280
Restricted for debt service - - 627,939 -
Unrestricted 972,945 261,798 209,839 5,170,774
TOTAL NET POSITION 5,310,492$ 261,798$ 16,925,337$ 8,940,054$
Total net position - enterprise funds 16,925,337$
Adjustment to reflect the consolidation of internal service fund
activities related to the enterprise funds (1,035,136)
Net position - business-type activities 15,890,201$
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, 2015 FOR THE YEAR ENDED DECEMBER 31, 2015
9300 9301 9302 9303
Sewer Utility Water Utility Golf Course Ice Arena
OPERATING REVENUES
Charges for services 2,468,638$ 3,576,643$ 272,314$ 748,886$
Billings to departments - - - -
Other - - - -
TOTAL OPERATING REVENUES 2,468,638 3,576,643 272,314 748,886
OPERATING EXPENSES
Cost of goods sold 1,500,828 3,551,915 22,822 -
Personnel services 380,050 262,431 124,654 310,046
Supplies 20,212 69,750 31,796 27,340
Utilities 9,278 699 22,729 202,381
Other services and charges 460,001 445,013 52,806 91,065
Depreciation 77,057 192,859 35,700 190,954
TOTAL OPERATING EXPENSES 2,447,426 4,522,667 290,507 821,786
OPERATING INCOME (LOSS)21,212 (946,024) (18,193) (72,900)
NONOPERATING REVENUES (EXPENSES)
Investment earnings - 13,804 624 9,375
Miscellaneous revenues - 221,022 14,742 9,475
Intergovernmental - - - 112,013
Loss on sale of capital assets - - - -
Bond issuance costs (11,800) (27,700) - -
Interest expense (5,770) (32,073) - (59,398)
TOTAL NONOPERATING
REVENUES (EXPENSES)(17,570) 175,053 15,366 71,465
INCOME (LOSS) BEFORE CONTRIBUTIONS
AND TRANSFERS 3,642 (770,971) (2,827) (1,435)
CAPITAL CONTRIBUTIONS FROM OTHER FUNDS - - 47,796 -
CAPITAL CONTRIBUTIONS - 51,701 - -
TRANSFERS OUT (46,800) (48,800) - -
CHANGE IN NET POSITION (43,158) (768,070) 44,969 (1,435)
NET POSITION, JANUARY 1 AS RESTATED (NOTE 5)2,632,302 5,315,608 621,333 3,551,498
NET POSITION, DECEMBER 31 2,589,144$ 4,547,538$ 666,302$ 3,550,063$
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, 2015
Governmental
Activities -
9304 9305 Internal
Storm Water Street Lighting Totals Service Funds
OPERATING REVENUES
Charges for services 981,723$ 128,890$ 8,177,094$ -$
Billings to departments - - - 3,191,126
Other - - - 65,311
TOTAL OPERATING REVENUES 981,723 128,890 8,177,094 3,256,437
OPERATING EXPENSES
Cost of goods sold - - 5,075,565 -
Personnel services 146,873 1,378 1,225,432 792,772
Supplies 11,395 - 160,493 359,607
Utilities 553 101,547 337,187 87,868
Other services and charges 436,073 2,546 1,487,504 892,985
Depreciation 95,642 - 592,212 852,690
TOTAL OPERATING EXPENSES 690,536 105,471 8,878,393 2,985,922
OPERATING INCOME (LOSS)291,187 23,419 (701,299) 270,515
NONOPERATING REVENUES (EXPENSES)
Investment earnings 9,501 2,396 35,700 57,301
Miscellaneous revenues - - 245,239 -
Intergovernmental - - 112,013 -
Loss on sale of capital assets - - - (6,132)
Bond issuance costs (14,500) - (54,000) -
Interest expense (7,453) - (104,694) -
TOTAL NONOPERATING
REVENUES (EXPENSES)(12,452) 2,396 234,258 51,169
INCOME (LOSS) BEFORE CONTRIBUTIONS
AND TRANSFERS 278,735 25,815 (467,041) 321,684
CAPITAL CONTRIBUTIONS FROM OTHER FUNDS - - 47,796 -
CAPITAL CONTRIBUTIONS 30,876 - 82,577 -
TRANSFERS OUT (20,400) - (116,000) (78,000)
CHANGE IN NET POSITION 289,211 25,815 (452,668) 243,684
NET POSITION, JANUARY 1 5,021,281 235,983 17,378,005 8,696,370
NET POSITION, DECEMBER 31 5,310,492$ 261,798$ 16,925,337$ 8,940,054$
Change in net position - enterprise funds (452,668)$
Adjustment to reflect the consolidation of internal service fund activities related to
the enterprise funds.2,488
Change in net position - business-type activities (450,180)$
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, 2015 FOR THE YEAR ENDED DECEMBER 31, 2015
9300 9301 9302 9303
Sewer Utility Water Utility Golf Course Ice Arena
CASH FLOWS FROM OPERATING ACTIVITIES
Receipts from customers and users 2,391,900$ 3,651,958$ 272,314$ 751,363$
Receipts from interfund services provided - - - -
Other operating receipts - 221,022 14,742 22,788
Payments to suppliers (2,009,268) (5,325,859) (126,654) (306,866)
Payments to employees (336,240) (282,608) (130,651) (323,172)
NET CASH PROVIDED (USED)
BY OPERATING ACTIVITIES 46,392 (1,735,487) 29,751 144,113
CASH FLOWS FROM NONCAPITAL
FINANCING ACTIVITIES
Receipts on interfund balances 219,504 39,540 - 122,889
Payments on interfund balances (39,540) - - -
Transfers out (46,800) (48,800) - -
NET CASH PROVIDED (USED) BY
NONCAPITAL FINANCING ACTIVITIES 133,164 (9,260) - 122,889
CASH FLOWS FROM CAPITAL
AND RELATED FINANCING ACTIVITIES
Acquisition of capital assets (851,012) (1,228,281) - (210,843)
Payment on account used to finance capital asset acquisitions (61,206) - - -
Payment of advance from other funds - (102,731) - -
Capital contributions - 51,701 - -
Intergovernmental receipts - - - 98,700
Proceeds from bonds issued (net)734,300 1,744,000 - -
Principal paid on long-term debt - (146,000) - -
Interest paid on long-term debt (1,638) (32,427) - (59,398)
NET CASH PROVIDED (USED) BY
CAPITAL AND RELATED
FINANCING ACTIVITIES (179,556) 286,262 - (171,541)
CASH FLOWS FROM INVESTING ACTIVITIES
Investment earnings - 13,804 624 9,375
NET INCREASE (DECREASE)
IN CASH AND CASH EQUIVALENTS - (1,444,681) 30,375 104,836
CASH AND CASH EQUIVALENTS, JANUARY 1 - 2,809,569 56,224 523,103
CASH AND CASH EQUIVALENTS, DECEMBER 31 -$ 1,364,888$ 86,599$ 627,939$
RECONCILIATION TO THE PROPRIETARY FUNDS
STATEMENT OF NET POSITION
Cash and temporary investments -$ 1,364,888$ 86,599$ -$
Cash held with fiscal agent - - - 627,939
TOTAL CASH AND CASH EQUIVALENTS -$ 1,364,888$ 86,599$ 627,939$
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, 2015
Governmental
Activities -
9304 9305 Internal
Storm Water Street Lighting Totals Service Funds
CASH FLOWS FROM OPERATING ACTIVITIES
Receipts from customers and users 987,144$ 131,316$ 8,185,995$ -$
Receipts from interfund services provided - - - 3,189,164
Other operating receipts - - 258,552 65,311
Payments to suppliers (441,760) (104,442) (8,314,849) (1,427,068)
Payments to employees (117,471) (1,378) (1,191,520) (822,571)
NET CASH PROVIDED (USED)
BY OPERATING ACTIVITIES 427,913 25,496 (1,061,822) 1,004,836
CASH FLOWS FROM NONCAPITAL
FINANCING ACTIVITIES
Receipts on interfund balances - - 381,933 -
Payments on interfund balances - - (39,540) -
Transfers out (20,400) - (116,000) (78,000)
NET CASH PROVIDED (USED) BY
NONCAPITAL FINANCING ACTIVITIES (20,400) - 226,393 (78,000)
CASH FLOWS FROM CAPITAL
AND RELATED FINANCING ACTIVITIES
Acquisition of capital assets (897,920) - (3,188,056) (784,488)
Payment on account used to finance capital asset acquisitions (3,177) - (64,383) -
Payment of advance from other funds - - (102,731) -
Capital contributions - - 51,701 -
Intergovernmental receipts 876 - 99,576 -
Proceeds from bonds issued (net)894,200 - 3,372,500 -
Principal paid on long-term debt (55,000) - (201,000) -
Interest paid on long-term debt (4,121) - (97,584) -
NET CASH PROVIDED (USED) BY
CAPITAL AND RELATED
FINANCING ACTIVITIES (65,142) - (129,977) (784,488)
CASH FLOWS FROM INVESTING ACTIVITIES
Investment earnings 9,501 2,396 35,700 57,301
NET INCREASE (DECREASE)
IN CASH AND CASH EQUIVALENTS 351,872 27,892 (929,706) 199,649
CASH AND CASH EQUIVALENTS, JANUARY 1 940,404 234,135 4,563,435 6,063,738
CASH AND CASH EQUIVALENTS, DECEMBER 31 1,292,276$ 262,027$ 3,633,729$ 6,263,387$
RECONCILIATION TO THE PROPRIETARY FUNDS
STATEMENT OF NET POSITION
Cash and temporary investments 1,292,276$ 262,027$ 3,005,790$ 6,263,387$
Cash held with fiscal agent - - 627,939 -
TOTAL CASH AND CASH EQUIVALENTS 1,292,276$ 262,027$ 3,633,729$ 6,263,387$
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, 2015 FOR THE YEAR ENDED DECEMBER 31, 2015
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)21,212$ (946,024)$ (18,193)$ (72,900)$
Adjustments to reconcile operating income (loss)
to net cash provided (used) by operating activities
Depreciation 77,057 192,859 35,700 190,954
Other income related to operations - 221,022 14,742 22,788
(Increase) decrease in assets
Receivables
Accounts (3,577) 2,636 - (6,523)
Special assessments (73,161) 63,915 - -
Due from other governments - 8,764 - 9,000
Inventories - (5,858) 1,470 -
(Increase) decrease in deferred outflows of resources
Deferred pension resources (25,580) (21,568) (4,986) (21,752)
Increase (decrease) in liabilities
Accounts and contracts payable (18,658) (213,068) 2,631 (7,150)
Accrued salaries payable (11,274) (8,781) (2,217) (10,300)
Due to other governments (291) (1,039,556) (602) (3,491)
Compensated absences payable - - - -
Other postemployment benefits payable 1,630 1,458 245 1,199
Pension liability 37,044 (26,690) (7,224) 6,581
Increase (decrease) in deferred inflows of resources
Deferred pension resources 41,990 35,404 8,185 35,707
NET CASH PROVIDED (USED)
BY OPERATING ACTIVITIES 46,392$ (1,735,487)$ 29,751$ 144,113$
SCHEDULE OF NONCASH CAPITAL AND
RELATED FINANCING ACTIVITIES
Amortization of bond discount -$ -$ -$ -$
Amortization of bond premium 1,165$ 4,496$ -$ -$
Capital assets contributed from other funds -$ -$ 47,796$ -$
Capital assets purchased on account 5,277$ -$ -$ -$
Loss on sale or disposal of capital assets -$ -$ -$ -$
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, 2015
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)291,187$ 23,419$ (701,299)$ 270,515$
Adjustments to reconcile operating income (loss)
to net cash provided (used) by operating activities
Depreciation 95,642 - 592,212 852,690
Other income related to operations - - 258,552 -
(Increase) decrease in assets
Receivables
Accounts 3,341 2,341 (1,782) (1,962)
Special assessments 2,080 85 (7,081) -
Due from other governments - - 17,764 -
Inventories - - (4,388) (10,473)
(Increase) decrease in deferred outflows of resources
Deferred pension resources (9,197) - (83,083) (27,127)
Increase (decrease) in liabilities
Accounts and contracts payable (18,299) (307) (254,851) (1,694)
Accrued salaries payable (5,186) - (37,758) (22,994)
Due to other governments 24,560 (42) (1,019,422) (47,314)
Compensated absences payable - - - 43,314
Other postemployment benefits payable 1,435 - 5,967 38,075
Pension liability 27,253 - 36,964 (132,724)
Increase (decrease) in deferred inflows of resources
Deferred pension resources 15,097 - 136,383 44,530
NET CASH PROVIDED (USED)
BY OPERATING ACTIVITIES 427,913$ 25,496$ (1,061,822)$ 1,004,836$
SCHEDULE OF NONCASH CAPITAL AND
RELATED FINANCING ACTIVITIES
Amortization of bond discount 740$ -$ 740$ -$
Amortization of bond premium 2,306$ -$ 7,967$ -$
Capital assets contributed from other funds -$ -$ 47,796$ -$
Capital assets purchased on account 3,177$ -$ 8,454$ -$
Loss on sale or disposal of capital assets -$ -$ -$ 6,132$
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, 2015
Agency
ASSETS
83,987$
LIABILITIES
Deposits payable 83,987$
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, 2015
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, 2015
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 funds. The fiduciary fund financial statements have no measurement
focus but utilize 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,
pensions, 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, 2015
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 funds are custodial in nature and do not present results of operations or have measurement focuses. The
Pass-Through Grant fund was established to account for pass-through grant funds held by the City as the agent for
others. The Flexible Spending fund was established to account for flexible spending accounts 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, 2015
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, 2015
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 2015. 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, 2015, the total
delinquent special assessment receivable balance was $72,084.
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, 2015
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 outflows of resources
In addition to assets, the statement of financial position will sometimes report a separate section for deferred outflows of
resources. This separate financial statement element, deferred outflows of resources, represents a consumption of net
position that applies to a future period(s) and so will not be recognized as an outflow of resources (expense/expenditure)
until then. The City has only one item that qualifies for reporting in this category. Accordingly, the item, deferred
pension resources, is reported only in the statements of net position. This item results from actuarial calculations and
current year pension contributions made subsequent to the measurement date.
Pensions
For purposes of measuring the net pension liability, deferred outflows/inflows of resources, and pension expense,
information about the fiduciary net position of the Public Employees Retirement Association (PERA) and additions
to/deductions from PERA’s fiduciary net position have been determined on the same basis as they are reported by PERA
except that PERA’s fiscal year end is June 30. For this purpose, plan contributions are recognized as of employer payroll
paid dates and benefit payments and refunds are recognized when due and payable in accordance with the benefit terms.
Investments are reported at fair value.
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.
The City has an additional item which qualifies for reporting in this category. The item, deferred pension resources, is
reported only in the statements of net position and results from actuarial calculations.
-62-
CITY OF NEW HOPE, MINNESOTA
NOTES TO THE FINANCIAL STATEMENTS
DECEMBER 31, 2015
Note 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - CONTINUED
Compensated absences
A liability is recognized for unpaid vacation, sick leave, wellness days, and personal leave earned by employees at the
balance sheet date if it is probable the benefit will be paid as time off or at separation of service. The City implemented a
personal leave plan in 1994 in which all new employees, other than police officers, participate. Employees who have had
five or more years of service at the time of implementation were allowed to choose between the personal leave plan or
the vacation/sick leave plan. Under the vacation/sick leave plan, employees are entitled to compensation for unpaid
vacation time up to 160 hours and one-third of their accumulated sick leave to a maximum of 320 hours. Under personal
leave, employees are entitled to 200 hours of accumulated leave time. The Employee Leave internal service fund is
typically used to liquidate governmental compensated absences payable.
Other postemployment benefits (OPEB)
Under Minnesota statute 471.61, 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.
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.
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CITY OF NEW HOPE, MINNESOTA
NOTES TO THE FINANCIAL STATEMENTS
DECEMBER 31, 2015
Note 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - CONTINUED
Fund balance
In the fund financial statements, fund balance is divided into five classifications based primarily on the extent to which
the City is bound to observe constraints imposed upon the use of resources reported in the governmental funds. These
classifications are defined as follows:
Nonspendable - Amounts that cannot be spent because they are not in spendable form, such as prepaid items.
Restricted - Amounts related to externally imposed constraints established by creditors, grantors or contributors; or
constraints imposed by state statutory provisions.
Committed - Amounts constrained for specific purposes that are internally imposed by formal action (resolution) of
the City Council, 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 will maintain an unassigned fund
balance in the General fund of an amount not less than 42% of the next year’s budgeted expenditures of the General
fund.
Net position
Net position represents the difference between assets and deferred outflows of resources and liabilities and deferred
inflows of resources. 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 - Consists 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.
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CITY OF NEW HOPE, MINNESOTA
NOTES TO THE FINANCIAL STATEMENTS
DECEMBER 31, 2015
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, 2015
Note 2: STEWARDSHIP, COMPLIANCE AND ACCOUNTABILITY - CONTINUED
B. Excess of expenditures over appropriations
For the year ended December 31, 2015, expenditures exceeded appropriations in the Economic Development Authority
fund by $135,050. This excess was partially funded by revenues received more than anticipated.
C. Deficit fund equity
The following funds had fund balance deficits at December 31, 2015:
Amount
HRA Bonds 226,356$
Fund
The City plans to fund these deficits with future tax increment receipts.
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, bonds, or irrevocable standby letters
of credit from Federal Home Loan Banks.
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 $1,267,761 and the bank balance was $1,728,154. At
December 31, 2015, 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, 2015
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, 2015, the City had invested 5 percent or more of its total investment portfolio
in the following issuers: New York City Transitional Finance Authority – 9.1 percent, Federal National
Mortgage Association – 6.6 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, 2015, 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 5,652,118$
Broker Money Market Funds AA Less than 6 months 7,939
Non-pooled investments
Negotiable Certificates of Deposit N/A Less than 6 months 489,980
Negotiable Certificates of Deposit N/A 6 months to 1 year 3,475,339
Negotiable Certificates of Deposit N/A 1 to 3 years 8,940,876
Negotiable Certificates of Deposit N/A More than 3 years 2,542,801
U.S. Government Agency Securities N/A More than 3 years 620,000
U.S. Government Agency Securities AA+1 to 3 years 2,772,104
U.S. Government Agency Securities AA+More than 3 years 3,570
State and Local Government Securities AA-1 to 3 years 749,085
State and Local Government Securities AA-More than 3 years 103,596
State and Local Government Securities A 1 to 3 years 506,775
State and Local Government Securities AAA Less than 6 months 2,005,180
State and Local Government Securities AAA 6 months to 1 year 629,752
State and Local Government Securities AAA 1 to 3 years 501,730
Total investments 29,000,845$
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, 2015
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 1,267,761$
Investments 29,000,845
Petty cash 2,950
Total 30,271,556$
Statement of Net Position
Cash and temporary investments 29,559,630$
Cash held with fiscal agent 627,939
Statement of Fiduciary Net Assets
Cash and temporary investments 83,987
Total 30,271,556$
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, 2015 totaled $364,029.
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CITY OF NEW HOPE, MINNESOTA
NOTES TO THE FINANCIAL STATEMENTS
DECEMBER 31, 2015
Note 3: DETAILED NOTES ON ALL FUNDS - CONTINUED
C. Capital assets
Capital asset activity for the year ended December 31, 2015 was as follows:
Beginning Ending
Balance Increases Decreases Balance
Governmental activities
Capital assets not being depreciated
Land 994,268$ -$ -$ 994,268$
Construction in progress 6,149,926 5,620,982 (6,099,407) 5,671,501
Total capital assets not
being depreciated 7,144,194 5,620,982 (6,099,407) 6,665,769
Capital assets, being depreciated
Buildings and structures 9,350,955 - - 9,350,955
Vehicles and equipment 9,297,132 828,611 (240,805) 9,884,938
Improvements other than buildings 21,135,155 6,050,469 - 27,185,624
Total capital assets
being depreciated 39,783,242 6,879,080 (240,805) 46,421,517
Less accumulated depreciation for
Buildings and structures (5,631,599) (269,029) - (5,900,628)
Vehicles and equipment (6,570,428) (789,808) 234,673 (7,125,563)
Improvements other than buildings (7,555,884) (1,053,305) - (8,609,189)
Total accumulated depreciation (19,757,911) (2,112,142) 234,673 (21,635,380)
Total capital assets
being depreciated, net 20,025,331 4,766,938 (6,132) 24,786,137
Governmental activities
capital assets, net 27,169,525$ 10,387,920$ (6,105,539)$ 31,451,906$
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CITY OF NEW HOPE, MINNESOTA
NOTES TO THE FINANCIAL STATEMENTS
DECEMBER 31, 2015
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 2,932,460 3,167,617 (3,251,088) 2,848,989
Total capital assets
not being depreciated 3,417,502 3,167,617 (3,251,088) 3,334,031
Capital assets being depreciated
Buildings and structures 10,614,311 181,947 - 10,796,258
Improvements other than buildings 13,917,484 2,855,125 - 16,772,609
Vehicles and equipment 2,121,761 290,705 (28,877) 2,383,589
Total capital assets
being depreciated 26,653,556 3,327,777 (28,877) 29,952,456
Less accumulated depreciation for
Buildings and structures (3,709,974) (203,305) - (3,913,279)
Improvements other than buildings (4,102,084) (284,714) - (4,386,798)
Vehicles and equipment (1,644,114) (104,193) 28,877 (1,719,430)
Total accumulated
depreciation (9,456,172) (592,212) 28,877 (10,019,507)
Total capital assets
being depreciated, net 17,197,384 2,735,565 - 19,932,949
Business-type activities
capital assets, net 20,614,886$ 5,903,182$ (3,251,088)$ 23,266,980$
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CITY OF NEW HOPE, MINNESOTA
NOTES TO THE FINANCIAL STATEMENTS
DECEMBER 31, 2015
Note 3: DETAILED NOTES ON ALL FUNDS - CONTINUED
Depreciation expense was charged to functions/programs of the City as follows:
Governmental activities
General government 105,676$
Public safety 58,473
Public works 750,311
Culture and recreation 344,992
Internal service 852,690
Total depreciation expense - governmental activities 2,112,142$
Business-type activities
Sewer utility 77,057$
Water utility 192,859
Golf course 35,700
Ice arena 190,954
Storm water 95,642
Total depreciation expense - business-type activities 592,212$
Construction commitments
The City has active construction projects as of December 31, 2015. At year-end, the City’s commitments with the
contractors are as follows:
Spent Remaining
to date Commitment
2011 Street Infrastructure 61,234$ 22,931$
Bass Creek Restoration 63,540 1,141
Victory Park Improvements 263,129 10,853
Xylon Ave Streetscape Imp 3,719,117 1,612,883
2015 Intrastructure Imp 3,671,120 399,791
Total 7,778,140$ 2,047,599$
Project
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CITY OF NEW HOPE, MINNESOTA
NOTES TO THE FINANCIAL STATEMENTS
DECEMBER 31, 2015
Note 3: DETAILED NOTES ON ALL FUNDS - CONTINUED
D. Interfund receivables, payables, and transfers
The composition of internal balances as of December 31, 2015 is as follows:
Purpose Amount
Due from/to other funds
Governmental Governmental
Economic Development Authority HRA Construction Finance capital purchase 107,525$
Temporary Financing HRA Bonds Cash flow 249,525
Governmental Business-type
Temporary Financing Sewer Utility Cash flow 219,504
Temporary Financing Water Utility Construction financing 104,282
Temporary Financing Ice Arena Cash flow 122,889
Total due from/to other funds 803,725
Advances to/from other funds
Governmental Governmental
Economic Development Authority HRA Construction Finance capital purchase 1,680,269$
Governmental Business-type
Temporary Financing Water Utility Construction financing 892,987
Total advances to/from other funds 2,573,256
Interfund activity eliminated from government-wide statements (2,037,319)
Internal service fund activities related to the enterprise funds 1,035,136
Total internal balances - government-wide statements 2,374,798$
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, 2015, 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. As of December 31, 2015, the balance outstanding was $997,269.
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CITY OF NEW HOPE, MINNESOTA
NOTES TO THE FINANCIAL STATEMENTS
DECEMBER 31, 2015
Note 3: DETAILED NOTES ON ALL FUNDS - CONTINUED
Interfund transfers at December 31, 2015 are as follows:
Economic Nonmajor
General Development HRA Governmental
Fund Authority Construction Funds Total
Transfer out
General -$ -$ -$ 250,000$ 250,000$
Economic Development Authority 30,000 - - - 30,000
HRA Construction - 878,026 - - 878,026
HRA Bonds - - 1,857,200 - 1,857,200
Sewer Utility enterprise 46,800 - - - 46,800
Water Utility enterprise 48,800 - - - 48,800
Storm Water enterprise 20,400 - - - 20,400
Internal Service 78,000 - - - 78,000
Total transfers 224,000$ 878,026$ 1,857,200$ 250,000$ 3,209,226$
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, $48,800,
$20,400, and $78,000, respectively, to the General fund to cover administrative charges paid for by the General
fund.
• A transfer related to the issuance of the 2015C Bond of $17,948 was made from the HRA Construction fund to
the Economic Development Authority fund. The HRA Construction fund made additional transfers to the
Economic Development Authority fund for construction costs.
• Transfers of $1,857,200 were made from the HRA bond fund to the HRA Construction fund for construction
costs.
E. Long-term debt
General obligation (G.O.) bonds
The City issues G.O. bonds to provide funds for the acquisition and construction of major capital facilities. G.O. bonds
have been issued for both governmental and business-type activities. These bonds are reported in the proprietary funds if
they are expected to be repaid from proprietary fund revenues. In addition, G.O. bonds have been issued to refund G.O.
tax increment bonds and G.O. revenue bonds.
The following G.O. bonds will be repaid from future tax levies.
Authorized Issue Maturity Balance at
and Issued Date Date Year End
2010B G.O. Certificates of
Indebtedness 1,245,000$ 2.00 - 2.60 %11/23/10 02/01/20 720,000$
G.O. Street Reconstruction
Bonds, Series 2015B 3,825,000 2.25 - 3.00 12/30/15 02/01/31 3,825,000
Total General Obligation Bonds 4,545,000$
Interest
RateDescription
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CITY OF NEW HOPE, MINNESOTA
NOTES TO THE FINANCIAL STATEMENTS
DECEMBER 31, 2015
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 Principal Interest Total
2016 140,000$ 49,017$ 189,017$ -$ 28,944$ 28,944$
2017 248,497 68,824 317,321 91,503 48,011 139,514
2018 258,922 62,529 321,451 96,078 45,197 141,275
2019 264,346 55,732 320,078 100,654 42,246 142,900
2020 272,059 48,421 320,480 102,941 39,192 142,133
2021-2025 678,105 174,263 852,368 571,895 146,969 718,864
2026-2030 767,614 79,847 847,461 647,386 67,341 714,727
2031 165,457 2,482 167,939 139,543 2,092 141,635
Total 2,795,000$ 541,115$ 1,468,347$ 1,750,000$ 419,992$ 594,766$
Governmental Activities Business-type 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 $270,000 and $106,168, respectively.
Authorized Issue Maturity Balance at
and Issued Date Date Year End
G.O. Tax Increment Refunding
Bonds, Series, 2012A 2,695,000$ 2.00 - 2.45 %01/11/12 02/01/25 2,480,000$
G.O. Taxable Tax Increment
Refunding Bonds, Series, 2012B 1,330,000 1.35 - 4.65 01/11/12 02/01/31 1,275,000
G.O. Tax Increment
Bonds, Series, 2015A 5,960,000 2.00 - 3.00 06/17/15 12/30/15 5,960,000
Total G.O. tax increment bonds 9,715,000$
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 Principal Interest Total
2016 275,000$ 200,432$ 475,432$ -$ 37,676$ 37,676$
2017 275,000 195,132 470,132 - 37,676 37,676
2018 540,317 187,053 727,370 89,683 36,783 126,466
2019 553,121 176,018 729,139 91,878 34,972 126,850
2020 571,808 164,481 736,289 93,192 33,121 126,313
2021-2025 3,105,165 626,967 3,732,132 494,835 136,520 631,355
2026-2030 2,052,412 290,895 2,343,307 552,588 75,987 628,575
2031 777,177 22,840 800,017 242,824 7,344 250,168
Total 8,150,000$ 1,863,818$ 10,013,818$ 1,565,000$ 400,079$ 454,981$
Business-type ActivitiesGovernmental Activities
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CITY OF NEW HOPE, MINNESOTA
NOTES TO THE FINANCIAL STATEMENTS
DECEMBER 31, 2015
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 $59,398 and $748,886, respectively.
Authorized Issue Maturity Balance at
and Issued Date Date Year End
2011A Taxable Lease
Revenue Bonds 3,505,000$ 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
2016 -$ 57,482$ 57,482$
2017 - 57,482 57,482
2018 - 57,482 57,482
2019 - 57,482 57,482
2020 - 57,482 57,482
2021-2025 - 287,410 287,410
2026-2028 3,505,000 172,446 3,677,446
Total 3,505,000$ 747,266$ 4,252,266$
Business-type Activities
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CITY OF NEW HOPE, MINNESOTA
NOTES TO THE FINANCIAL STATEMENTS
DECEMBER 31, 2015
Note 3: DETAILED NOTES ON ALL FUNDS - CONTINUED
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 $1,638 and $2,468,638,
respectively. Principal and interest paid for the current year and total customer revenues for the Water Utility fund were
$178,427 and $3,576,643, respectively. Principal and interest paid for the current year and total customer revenues for
the Storm Water fund were $59,121 and $981,723, respectively.
Authorized Issue Maturity Balance at
and Issued Date Date Year End
2010A G.O. Utility Revenue
Bonds 1,200,000$ 2.00 - 3.25 %05/06/10 02/01/21 480,000$
2010B G.O. Water Revenue
Refunding Bonds 605,000 2.00 - 3.00 11/23/10 02/01/22 405,000
2011 G.O. Public Facilities
Authority Note 411,738 1.70 02/23/11 08/20/29 315,000
2013 G.O. Public Facilities
Authority Note 1,035,000 1.00 07/24/13 08/20/32 952,000
Total G.O. revenue bonds and notes 2,152,000$
Rate
Interest
Description
The annual debt service to maturity for G.O. revenue bonds are as follows:
Year Ending Business-type Activities
December 31,Principal Interest Total
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 216,000 19,997 235,997
2021-2025 599,000 48,305 647,305
2026-2030 389,000 19,036 408,036
2031 -2032 121,000 1,820 122,820
Total 2,152,000$ 215,046$ 2,367,046$
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CITY OF NEW HOPE, MINNESOTA
NOTES TO THE FINANCIAL STATEMENTS
DECEMBER 31, 2015
Note 3: DETAILED NOTES ON ALL FUNDS - CONTINUED
Changes in long-term liabilities
Long-term liability activity for the year ended December 31, 2015, was as follows:
Beginning Ending Due Within
Balance Increases Decreases Balance One Year
Governmental activities
Bonds payable
G.O. bonds and certificates 855,000$ 2,075,000$ (135,000)$ 2,795,000$ 140,000$
G.O. tax increment bonds 4,025,000 4,395,000 (270,000) 8,150,000 275,000
Add: premiums on bonds 49,843 171,339 (17,724) 203,458 -
Total bonds payable, net 4,929,843 6,641,339 (422,724) 11,148,458 415,000
Pension liability
GERF - 2,752,098 *(262,107) 2,489,991 -
PEPFF - 3,555,487 *(351,307) 3,204,180 -
Compensated absences payable 493,943 162,511 (119,197) 537,257 53,726
Other postemployment
benefits payable 230,944 85,907 (47,832) 269,019 -
Governmental activity
long-term liabilities 5,654,730$ 13,197,342$ (1,203,167)$ 17,648,905$ 468,726$
Business-type activities
Bonds payable
G.O. bonds -$ 1,750,000$ -$ 1,750,000$ -$
G.O. tax increment bonds - 1,565,000 - 1,565,000 -
Lease revenue bonds 3,505,000 - - 3,505,000 -
G.O. revenue bonds 2,353,000 - (201,000) 2,152,000 202,000
Add: premiums on bonds 4,056 111,500 (7,949) 107,607 -
Less: bond discount (4,503) - 740 (3,763) -
Total bonds payable, net 5,857,553 3,426,500 (208,209) 9,075,844 202,000
Pension liability
GERF - 732,680 *(25,057) 707,623 -
Other postemployment
benefits payable 35,679 13,272 (7,305) 41,646 -
Business-type activity
long-term liabilities 5,893,232$ 4,172,452$ (240,571)$ 9,825,113$ 202,000$
* Includes January 1, 2015 pension liability balance related to GASB Statement No. 68 implementation. See Note 5 for
further details.
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, 2015
Note 3: DETAILED NOTES ON ALL FUNDS - CONTINUED
F. Components of fund balance
At December 31, 2015, 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 16,765$ -$ -$ -$ -$ -$ 16,765$
Restricted for
Economic development -$ -$ 5,612,741$ -$ -$ -$ 5,612,741 $
Debt service - - - - - 178,639 178,639
Capital improvements - - - - - 2,144,683 2,144,683
Public safety
Police expenditures - - - - - 127,381 127,381
Ice arena - - - - - 5,794 5,794
Total restricted -$ -$ 5,612,741$ -$ -$ 2,456,497$ 8,069,238 $
Committed to
Solid waste operations -$ -$ -$ -$ -$ 194,317$ 194,317$
Economic development - 5,236,971 - - - - 5,236,971
Total committed -$ 5,236,971$ -$ -$ -$ 194,317$ 5,431,288 $
Assigned to
Street improvements -$ -$ -$ 768,047$ -$ -$ 768,047$
General improvements - - - - 2,966,752 - 2,966,752
Capital equipment - - - - - 301,971 301,971
City hall improvements - - - - - 394,108 394,108
Park improvements - - - - - 1,065,606 1,065,606
Total assigned -$ -$ -$ 768,047$ 2,966,752$ 1,761,685$ 5,496,484 $
Purpose
Note 4: OTHER INFORMATION
A. Defined benefit pension plan - public employees retirement association (PERA) - statewide
1. Plan description
The City participates in the following cost-sharing multiple-employer defined benefit pension plans administered by
the Public Employees Retirement Association of Minnesota (PERA). PERA’s defined benefit pension plans are
established and administered in accordance with Minnesota statutes, chapters 353 and 356. PERA’s defined
benefit pension plans are tax qualified plans under Section 401 (a) of the Internal Revenue Code.
General Employees Retirement Fund (GERF)
All full-time and certain part-time employees of the City, are covered by the General Employees Retirement Fund
(GERF). 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. The Basic Plan was closed to new members in 1967.
All new members must participate in the Coordinated Plan.
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CITY OF NEW HOPE, MINNESOTA
NOTES TO THE FINANCIAL STATEMENTS
DECEMBER 31, 2015
Note 4: OTHER INFORMATION - CONTINUED
Public Employees Police and Fire Fund (PEPFF)
The PEPFF, originally established for police officers and firefighters not covered by a local relief association, now
covers all police officers and firefighters hired since 1980. Effective July 1, 1999, the PEPFF also covers police
officers and firefighters belonging to a local relief association that elected to merge with and transfer assets and
administration to PERA.
2. Benefits provided
PERA provides retirement, disability and death benefits. Benefit provisions are established by Minnesota statute and
can only be modified by the state legislature.
Benefit increases are provided to benefit recipients each January. Increases are related to the funding ratio of the
plan. Members in plans that are at least 90 percent funded for two consecutive years are given 2.5 percent increases.
Members in plans that have not exceeded 90 percent funded, or have fallen below 80 percent, are given 1 percent
increases.
The benefit provisions stated in the following 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.
GERF benefits
Benefits are based on a member’s highest average salary for any five successive years of allowable service, age, and
years of credit at termination of service. Two methods are used to compute benefits for PERA's Coordinated and
Basic Plan members. The retiring member receives the higher of a 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 ten 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 ten years and
1.7 percent for each remaining year. Under Method 2, the annuity accrual rate is 2.7 percent of average salary for
Basic Plan members and 1.7 percent for Coordinated Plan members for each year of service. For members hired
prior to July 1, 1989, a full annuity is available when age plus years of service equal 90 and normal retirement age is
65. For members hired on or after July 1, 1989, normal retirement age is the age for unreduced Social Security
benefits capped at 66.
PEPFF benefits
Benefits for the PEPFF members first hired after June 30, 2010, but before July 1, 2014, vest on a prorated basis
from 50 percent after five years up to 100 percent after ten years of credited service. Benefits for PEPFF members
first hired after June 30, 2014, vest on a prorated basis from 50 percent after ten years up to 100 percent after twenty
years of credited service. The annuity accrual rate is 3 percent of average salary for each year of service.
For PEPFF who were first hired prior to July 1, 1989, a full annuity is available when age plus years of service equal
at least 90.
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CITY OF NEW HOPE, MINNESOTA
NOTES TO THE FINANCIAL STATEMENTS
DECEMBER 31, 2015
Note 4: OTHER INFORMATION - CONTINUED
3. Contributions
Minnesota statutes, chapter 353 sets the rates for employer and employee contributions. Contribution rates can only
be modified by the state legislature.
GERF contributions
Basic Plan members and Coordinated Plan members were required to contribute 9.10 percent and 6.50 percent,
respectively, of their annual covered salary in calendar year 2015. The City was required to contribute 11.78 percent
of pay for Basic Plan members and 7.50 percent for Coordinated Plan members in calendar year 2015. The City’s
contributions to the GERF for the years ending December 31, 2015, 2014 and 2013 were $284,367, $255,968 and
$251,438, respectively. The City’s contributions were equal to the contractually required contributions for each year
as set by Minnesota statute.
PEPFF contributions
Plan members were required to contribute 10.8 percent of their annual covered salary in calendar year 2015. The
City was required to contribute 16.20 percent of pay for PEPFF members in calendar year 2015. The City’s
contributions to the PEPFF for the years ending December 31, 2015, 2014 and 2013 were $448,029, $384,964, and
$339,138, respectively. The City’s contributions were equal to the contractually required contributions for each year
as set by Minnesota statute.
4. Pension costs
GERF pension costs
At December 31, 2015, the City reported a liability of $3,197,614 for its proportionate share of the GERF’s net
pension liability. The net pension liability was measured as of June 30, 2015, and the total pension liability used to
calculate the net pension liability was determined by an actuarial valuation as of that date. The City’s proportion of
the net pension liability was based on the City’s contributions received by PERA during the measurement period for
employer payroll paid dates from July 1, 2014 through June 30, 2015 relative to the total employer contributions
received from all of PERA’s participating employers. At June 30, 2015, the City’s proportionate share was 0.0617
percent which was an decrease of 0.0042 percent from its proportion measured as of June 30, 2014.
For the year ended December 31, 2015, the City recognized pension expense of $287,164 for its proportionate share
of GERF’s pension expense.
At December 31, 2015, the City reported its proportionate share of GERF’s deferred outflows of resources and
deferred inflows of resources, and its contributions subsequent to the measurement date, from the following sources:
Deferred Deferred
Outflows Inflows
of Resources of Resources
Differences between expected and
actual experience 31,673$ 161,214$
Changes in actuarial assumptions 197,118 -
Net difference between projected and
actual earnings on plan investments - 284,646
Changes in proportion - 170,432
Contributions to GERF subsequent
to the measurement date 146,644 -
Total 375,435$ 616,292$
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CITY OF NEW HOPE, MINNESOTA
NOTES TO THE FINANCIAL STATEMENTS
DECEMBER 31, 2015
Note 4: OTHER INFORMATION - CONTINUED
Deferred outflows of resources totaling $146,644 related to pensions resulting from the City’s contributions to
GERF subsequent to the measurement date will be recognized as a reduction of the net pension liability in the year
ended December 31, 2016. Other amounts reported as deferred outflows and inflows of resources related to GERF
pensions will be recognized in pension expense as follows:
2016 116,262$
2017 116,262
2018 230,657
2019 (75,680)
PEPFF pension costs
At December 31, 2015, the City reported a liability of $3,204,180 for its proportionate share of the PEPFF’s net
pension liability. The net pension liability was measured as of June 30, 2015, and the total pension liability used to
calculate the net pension liability was determined by an actuarial valuation as of that date. The City’s proportion of
the net pension liability was based on the City’s contributions received by PERA during the measurement period for
employer payroll paid dates from July 1, 2014 through June 30, 2015 relative to the total employer contributions
received from all of PERA’s participating employers. At June 30, 2015, the City’s proportionate share was 0.282
percent which was an increase of 0.01 percent from its proportion measured as of June 30, 2014.
For the year ended December 31, 2015, the City recognized pension expense of $351,306 for its proportionate share
of PEPFF’s pension expense. The City also recognized $25,380 for the year ended December 31, 2015, as pension
expense (and grant revenue) for its proportionate share of the State of Minnesota’s on-behalf contributions to the
PEPFF. Legislation passed in 2013 required the State of Minnesota to begin contributing $9 million to the PEPFF
each year, starting in fiscal year 2014.
At December 31, 2015, the City reported its proportionate share of PEPFF’s deferred outflows of resources and
deferred inflows of resources, and its contributions subsequent to the measurement date, from the following sources:
Deferred Deferred
Outflows Inflows
of Resources of Resources
Differences between expected and
actual experience 3,288$ 519,613$
Changes in actuarial assumptions 609,138 -
Net difference between projected and
actual earnings on plan investments - 568,870
Changes in proportion 111,792 -
Contributions to PEPFF subsequent
to the measurement date 237,956 -
Total 962,174$ 1,088,483$
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CITY OF NEW HOPE, MINNESOTA
NOTES TO THE FINANCIAL STATEMENTS
DECEMBER 31, 2015
Note 4: OTHER INFORMATION - CONTINUED
Deferred outflows of resources totaling $237,956 related to pensions resulting from the City’s contributions to
PEPFF subsequent to the measurement date will be recognized as a reduction of the net pension liability in the year
ended December 31, 2016. Other amounts reported as deferred outflows and inflows of resources related to GERF
pensions will be recognized in pension expense as follows:
2016 164,605$
2017 164,605
2018 164,605
2019 (211,110)
2020 81,560
5. Actuarial assumptions
The total pension liability in the June 30, 2015 actuarial valuation was determined using the following actuarial
assumptions:
Inflation 2.75% per year
Active member payroll growth 3.50% per year
Investment rate of return 7.90%
Salary increases were based on a service-related table. Mortality rates for active members, retirees, survivors and
disabilitants were based on RP-2000 tables for males or females, as appropriate, with slight adjustments. Cost of
living benefit increases for retirees are assumed to be: 1 percent effective every January 1st until 2034, then 2.5
percent for GERF and PEPFF.
Actuarial assumptions used in the June 30, 2015 valuation were based on the results of actuarial experience studies.
The experience study in the GERF was for the period July 1, 2004 through June 30, 2008, with an update of
economic assumptions in 2014. The experience study for PEPFF was for the period July 1, 2004, through June 30,
2009. Experience studies have not been prepared for PERA’s other plans, but assumptions are reviewed annually.
There were no changes in actuarial assumptions in 2015.
The long-term expected rate of return on pension plan investments is 7.9 percent. The State Board of Investment,
which manages the investments of PERA, prepares an analysis of the reasonableness of the long-term expected rate
of return on a regular basis using a building-block method in which best-estimate ranges of expected future rates of
return are developed for each major asset class. These ranges are combined to produce an expected long-term rate
of return by weighting the expected future rates of return by the target asset allocation percentages. The target
allocation and best estimates of arithmetic real rates of return for each major asset class are summarized in the
following table:
Asset Class
Domestic stocks 45.00 %5.50 %
International stocks 15.00 6.00
Bonds 18.00 1.45
Alternative assets 20.00 6.40
Cash 2.00 0.50
Total 100.00 %
Target Expected Real
Allocation Rate of Return
Long-term
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CITY OF NEW HOPE, MINNESOTA
NOTES TO THE FINANCIAL STATEMENTS
DECEMBER 31, 2015
Note 4: OTHER INFORMATION - CONTINUED
6. Discount rate
The discount rate used to measure the total pension liability was 7.9 percent. The projection of cash flows used to
determine the discount rate assumed that employee and employer contributions will be made at the rate specified in
statute. Based on that assumption, each of the pension plan’s fiduciary net position was projected to be available to
make all projected future benefit payments of current active and inactive employees. Therefore, the long-term
expected rate of return on pension plan investments was applied to all periods of projected benefit payments to
determine the total pension liability.
7. Pension liability sensitivity
The following presents the City’s proportionate share of the net pension liability for all plans it participates in,
calculated using the discount rate disclosed in the preceding paragraph, as well as what the City’s proportionate
share of the net pension liability would be if it were calculated using a discount rate 1 percentage point lower or 1
percentage point higher than the current discount rate:
1 Percent 1 Percent
Decrease (6.90%)Current (7.90%)Increase (8.90%)
GERF 5,027,786$ 3,197,614$ 1,686,173$
PEPFF 6,244,980 3,204,180 691,949
City Proportionate Share of NPL
8. Pension plan fiduciary net position
Detailed information about each defined benefit pension plan’s fiduciary net position is available in a separately-
issued PERA financial report that includes financial statements and required supplementary information. That report
may be obtained on the Internet at www.mnpera.org; by writing to PERA at 60 Empire Drive #200, St. Paul,
Minnesota, 55103-2088; or by calling (651) 296-7460 or (800) 652-9026.
B. Defined contribution plan
There are five City Council members of the City are covered by the Public Employees Defined Contribution Plan
(PEDCP), a multiple-employer deferred compensation plan administered by 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, specifies plan provisions, including the employee and employer contribution rates
for those qualified personnel who elect to participate. An eligible elected official who decides to participate contributes
5 percent of salary which is matched by the elected official's employer. For ambulance service personnel, employer
contributions are determined by the employer, and for salaried employees contributions must be a fixed percentage of
salary. Employer contributions for volunteer personnel may be a unit value for each call or period of alert duty.
Employees who are paid for their services may elect to make member contributions in an amount not to exceed the
employer share. Employer and employee contributions are combined and used to purchase shares in one or more of the
seven accounts of the Minnesota Supplemental Investment Fund. For administering the plan, PERA receives 2 percent of
employer contributions and twenty-five hundredths of 1 percent (.0025) of the assets in each member's account annually.
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CITY OF NEW HOPE, MINNESOTA
NOTES TO THE FINANCIAL STATEMENTS
DECEMBER 31, 2015
Note 4: OTHER INFORMATION – CONTINUED
The City’s contributions to the PEDCP for the years ended December 31, 2015, 2014 and 2013 were $2,478, $2,342, and
$2,197, respectively. The City’s contributions were equal to the contractually required contributions for each year as set
by Minnesota statute.
Employee Employer Employee Employer Required Rate
2,478$ 2,478$ 5.00%5.00%5.00%
Contribution Amount
Percentage of
Covered Payroll
C. 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 9 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 2015, the City contributed $55,137 to the plan.
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CITY OF NEW HOPE, MINNESOTA
NOTES TO THE FINANCIAL STATEMENTS
DECEMBER 31, 2015
Note 4: OTHER INFORMATION - CONTINUED
3. Annual other postemployment benefit cost and net other postemployment benefit obligation
The City’s annual other postemployment benefit (OPEB) cost (expense) is calculated based on the annual required
contribution of the employer (ARC). The City has elected to calculate the ARC and related information using the
alternative measurement method permitted by GASB Statement No. 45 for employers in plans with fewer than one
hundred total plan members. The ARC represents a level of funding that, if paid on an ongoing basis, is projected to
cover normal cost each year and to amortize any unfunded actuarial liabilities (or funding excess) over a period not
to exceed thirty years. The following table shows the components of the City’s annual OPEB cost for the year, the
amount actually contributed to the plan, and changes in the City’s net OPEB obligation:
Annual required contribution 100,185$
Interest on net OPEB obligation 9,332
Adjustment to annual required contribution (10,338)
Annual OPEB cost (expense)99,179
Contributions made (55,137)
Increase in net OPEB obligation 44,042
Net OPEB obligation - January 1, 2015 266,623
Net OPEB obligation - December 31, 2015 310,665$
The City’s annual OPEB cost, the percentage of annual OPEB cost contributed to the plan, and the net OPEB
obligation for fiscal year 2015 and the preceding two fiscal years are as follows:
Year Annual Net OPEB
Ending OPEB Cost Obligation
12/31/15 99,179$ 55.6 %310,665$
12/31/14 132,790 36.8 266,623
12/31/13 99,524 47.9 182,742
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, 2015
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, 2015 was thirty years.
D. 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, 2015
Note 4: OTHER INFORMATION - CONTINUED
E. 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. There were no significant reductions in insurance
from the previous year or settlements in excess of insurance coverage for 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.
F. 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, 2015, 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, 2015 is undetermined.
G. 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, 2015:
Total assets $15,335,319
Total liabilities $722,509
Total net position $14,612,810
Total revenue $11,813,048
Total expenses $6,408,186
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CITY OF NEW HOPE, MINNESOTA
NOTES TO THE FINANCIAL STATEMENTS
DECEMBER 31, 2015
Note 4: OTHER INFORMATION - CONTINUED
Of the total revenues, $11,680,403 represented assessments paid by member cities. The City’s share of JWC’s total
member assessments for the year ended December 31, 2015 was $3,552,340 or 30.45 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, 2014, the most recent information available at the date of this report:
Total assets $4,656,239
Total liabilities $418,013
Total net position $4,238,226
Total revenue $2,034,927
Total expenses $2,638,010
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, 2015,
the amount reported as investment in joint venture was $2,076,731.
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 2015 totaled $1,001,841. The District’s financial statements for the period ended December 31, 2015 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, 2015 was $27,055, 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 $15,342 for these services in 2015.
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 2015, total
charges of $215,544 were incurred for these services.
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CITY OF NEW HOPE, MINNESOTA
NOTES TO THE FINANCIAL STATEMENTS
DECEMBER 31, 2015
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 2015 contribution to the BCWMC for its fiscal year ended
December 31, 2015 was $25,681, representing 5.4 percent of member’s contributions for the year.
Note 5: CHANGE IN ACCOUNTING STANDARDS
During 2015, the City implemented several new accounting pronouncements issued by the Governmental Accounting
Standards Board (GASB), including Statement No. 68, Accounting and Financial Reporting for Pensions - an Amendment of
GASB Statement No. 27 and Statement No. 71, Pension Transition for Contributions Made Subsequent to the Measurement
Date - an Amendment of GASB Statement No. 68, for the year ended December 31, 2015. These standards required a
retroactive implementation which resulted in the restatement of beginning balances in the December 31, 2014 financial
statements. Changes related to these standards are reflected in the financial statements and schedules and related disclosures
are included in Note 4.
As a result of the restatement of beginning balances, the following schedule reconciles the previously reported
December 31, 2014 balances to the December 31, 2015 financial statements:
Net Position
January 1, 2015 Net Position
as Previously Prior Period January 1, 2015
Reported Restatement (1) as Restated
Governmental activities 55,116,581$ (6,217,606)$ 48,898,975$
Business-type activities 17,011,040$ (670,659)$ 16,340,381$
Business-type activities
Enterprise funds
Sewer Utility 2,813,122$ (180,820)$ 2,632,302$
Water Utility 5,525,993 (210,385) 5,315,608
Golf Course 671,026 (49,693) 621,333
Ice Arena 3,730,181 (178,683) 3,551,498
Storm Water 5,072,359 (51,078) 5,021,281
Street Lighting 235,983 - 235,983
Total enterprise funds 18,048,664$ (670,659)$ 17,378,005$
Governmental activities
Internal service funds 9,060,138$ (363,768)$ 8,696,370$
(1) To record beginning net pension liability, deferred inflows of resources and deferred outflow of resources at
December 31, 2014.
December 31, 2015
Fund
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REQUIRED SUPPLEMENTARY INFORMATION
CITY OF NEW HOPE
NEW HOPE, MINNESOTA
FOR THE YEAR ENDED
DECEMBER 31, 2015
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CITY OF NEW HOPE, MINNESOTA
REQUIRED SUPPLEMENTARY INFORMATION
FOR THE YEAR ENDED DECEMBER 31, 2015
Schedule of employer’s share of PERA net pension liability - General Employees Retirement Fund
State's
Proportionate
City's Share of
Proportionate the Net Pension
Share of Liability City's
Fiscal the Net Pension Associated with Covered
Year Liability the City Total Payroll
Ending (a)(b)(a+b) (c)
06/30/15 0.0617 %3,197,614$ -$ 3,197,614 $ 3,627,658 $ 88.1 %78.2 %
the Net Pension Payroll of the Total
Liability ((a+b)/c)Pension Liability
Plan Fiduciary
City's
Liability as a
Net Position
Proportion of
Percentage of
as a PercentageCovered
Required Supplementary Information
City's
Proportionate
Share of the
Net Pension
Schedule of employer’s PERA contributions - General Employees Retirement Fund
Contributions in
Relation to the
Statutorily Statutorily Contribution City's
Required Required Deficiency Covered
Year Contribution Contribution (Excess)Payroll
Ending (a)(b)(a-b)(c)
12/31/15 284,367$ 284,367$ -$ 3,791,560$ 7.5 %
(b/c)
Required Supplementary Information
Contributions as
a Percentage of
Covered Payroll
Schedule of employer’s share of PERA net pension liability - Public Employees Police and Fire
State's
Proportionate
City's Share of
Proportionate the Net Pension
Share of Liability City's
Fiscal the Net Pension Associated with Covered
Year Liability the City Total Payroll
Ending (a)(b)(a+b)(c)
06/30/15 0.2820 %3,204,180$ -$ 3,204,180$ 2,579,768$ 124.2 %86.6 %
Liability ((a+b)/c)Pension Liability
Proportion of Covered as a Percentage
the Net Pension Payroll of the Total
Liability as a Plan Fiduciary
City's Percentage of Net Position
Required Supplementary Information
City's
Proportionate
Share of the
Net Pension
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CITY OF NEW HOPE, MINNESOTA
REQUIRED SUPPLEMENTARY INFORMATION
FOR THE YEAR ENDED DECEMBER 31, 2015
Schedule of employer’s PERA contributions - Public Employees Police and Fire Fund
Contributions in
Relation to the
Statutorily Statutorily Contribution City's
Required Required Deficiency Covered
Year Contribution Contribution (Excess)Payroll
Ending (a)(b)(a-b)(c)
12/31/15 448,029$ 448,029$ -$ 2,765,611$ 16.2 %
(b/c)
Required Supplementary Information
Contributions as
a Percentage of
Covered Payroll
Schedule of employer’s 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
-93-
COMBINING AND INDIVIDUAL FUND
FINANCIAL STATEMENTS AND SCHEDULES
CITY OF NEW HOPE
NEW HOPE, MINNESOTA
FOR THE YEAR ENDED
DECEMBER 31, 2015
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CITY OF NEW HOPE, MINNESOTA
NONMAJOR DEBT SERVICE FUNDS
The Debt Service funds are used to account for the payment of principal and interest on the City’s general obligation bonds. Revenues
for this purpose include ad valorem property taxes, special assessments, investment income, and other revenue.
2010B G.O. Equipment Bonds Fund - This fund accounts for revenue from property taxes and interest income to be used for the
payment of principal and interest on the City’s 2010B G.O. Equipment Bonds.
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CITY OF NEW HOPE, MINNESOTA
NONMAJOR GOVERNMENTAL FUNDS
COMBINING BALANCE SHEET
DECEMBER 31, 2015
Debt Service
9145 Total
2010B Nonmajor
Special G.O. Equipment Capital Governmental
Revenue Bonds Projects Funds
ASSETS
Cash and temporary investments 295,423$ 178,639$ 3,909,178$ 4,383,240$
Receivables
Accounts 23,413 - - 23,413
Special assessments 8,840 - - 8,840
Due from other governments - - 14,999 14,999
TOTAL ASSETS 327,676$ 178,639$ 3,924,177$ 4,430,492$
LIABILITIES
Accounts and contracts payable 184$ -$ 17,809$ 17,993$
FUND BALANCES
Restricted for
Debt service - 178,639 - 178,639
Capital improvements - - 2,144,683 2,144,683
Public safety police expenditures 127,381 - - 127,381
Ice arena 5,794 - - 5,794
Committed to solid waste operations 194,317 - - 194,317
Assigned to
Capital equipment - - 301,971 301,971
City hall improvements - - 394,108 394,108
Park improvements - - 1,065,606 1,065,606
TOTAL FUND BALANCES 327,492 178,639 3,906,368 4,412,499
TOTAL LIABILITIES AND
FUND BALANCES 327,676$ 178,639$ 3,924,177$ 4,430,492$
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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, 2015
Debt Service
9145 Total
2010B Nonmajor
Special G.O. Equipment Capital Governmental
Revenue Bonds Projects Funds
REVENUES
Taxes
Property taxes -$ 163,902$ 304,880$ 468,782$
Intergovernmental - - 11,686 11,686
Charges for services 218,692 - 66,347 285,039
Fines and forfeitures 5,679 - - 5,679
Investment earnings 2,847 642 15,962 19,451
Miscellaneous 5,000 - 109,865 114,865
TOTAL REVENUES 232,218 164,544 508,740 905,502
EXPENDITURES
Current
General government - - 5,048 5,048
Public works 216,279 - - 216,279
Capital outlay
Culture and recreation - - 538,790 538,790
Debt service
Principal - 135,000 - 135,000
Interest - 17,898 - 17,898
Bond issuance costs - - 33,836 33,836
TOTAL EXPENDITURES 216,279 152,898 577,674 946,851
EXCESS (DEFICIENCY) OF REVENUES
OVER (UNDER) EXPENDITURES 15,939 11,646 (68,934) (41,349)
OTHER FINANCING SOURCES
Transfers in - - 250,000 250,000
Bonds issued - - 2,075,000 2,075,000
Premium on bonds issued - - 103,519 103,519
TOTAL OTHER FINANCING
SOURCES - - 2,428,519 2,428,519
NET CHANGE IN FUND BALANCES 15,939 11,646 2,359,585 2,387,170
FUND BALANCES, JANUARY 1 311,553 166,993 1,546,783 2,025,329
FUND BALANCES, DECEMBER 31 327,492$ 178,639$ 3,906,368$ 4,412,499$
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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, 2015
9021 9016 9017
Police Solid Waste Ice Arena
Forfeitures Management Endowment Total
ASSETS
Cash and temporary investments 127,381$ 162,248$ 5,794$ 295,423$
Receivables
Accounts - 23,413 - 23,413
Special assessments - 8,840 - 8,840
TOTAL ASSETS 127,381$ 194,501$ 5,794$ 327,676$
LIABILITIES
Accounts and contracts payable -$ 184$ -$ 184$
FUND BALANCES
Restricted for
Public safety police expenditures 127,381 - - 127,381
Ice arena - - 5,794 5,794
Committed to solid waste operations - 194,317 - 194,317
TOTAL FUND BALANCES 127,381$ 194,317$ 5,794$ 327,492$
TOTAL LIABILITIES AND
FUND BALANCES 127,381$ 194,501$ 5,794$ 327,676$
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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, 2015
9021 9016 9017
Police Solid Waste Ice Arena
Forfeitures Management Endowment Total
REVENUES
Charges for services -$ 218,692$ -$ 218,692$
Fines and forfeitures 5,679 - - 5,679
Investment earnings 1,238 1,609 - 2,847
Miscellaneous - - 5,000 5,000
TOTAL REVENUES 6,917 220,301 5,000 232,218
EXPENDITURES
Current
Public works
Other services and charges - 216,279 - 216,279
NET CHANGE IN FUND BALANCES 6,917 4,022 5,000 15,939
FUND BALANCES, JANUARY 1 120,464 190,295 794 311,553
FUND BALANCES, DECEMBER 31 127,381$ 194,317$ 5,794$ 327,492$
-103-
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, 2015
Actual Variance with
Original Final Amounts Final Budget
REVENUES
Charges for services 218,650$ 218,650$ 218,692$ 42$
Investment earnings 2,922 2,922 1,609 (1,313)
TOTAL REVENUES 221,572 221,572 220,301 (1,271)
EXPENDITURES
Current
Public works
Other services and charges 216,735 216,735 216,279 456
NET CHANGE IN FUND BALANCES 4,837 4,837 4,022 (815)
FUND BALANCES, JANUARY 1 190,295 190,295 190,295 -
FUND BALANCES, DECEMBER 31 195,132$ 195,132$ 194,317$ (815)$
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.
2016 Street Improvement Project Fund - This fund is used to account for the 2016 street improvement project.
-105-
CITY OF NEW HOPE, MINNESOTA
NONMAJOR CAPITAL PROJECTS FUNDS
SUBCOMBINING BALANCE SHEET
DECEMBER 31, 2015
9010 9202 9233 9250
2016 Street
Fire City Hall Park Improvement
Capital Projects CIP Infrastructure Project Total
ASSETS
Cash and temporary investments 301,971$ 394,108$ 1,068,416$ 2,144,683$ 3,909,178$
Due from other governments - - 14,999 - 14,999
TOTAL ASSETS 301,971$ 394,108$ 1,083,415$ 2,144,683$ 3,924,177$
LIABILITIES
Accounts and contracts payable -$ -$ 17,809$ -$ 17,809$
FUND BALANCES
Restricted for capital improvements - - - 2,144,683 2,144,683
Assigned to
Capital equipment 301,971 - - - 301,971
City hall improvements - 394,108 - - 394,108
Park improvements - - 1,065,606 - 1,065,606
TOTAL FUND BALANCES 301,971 394,108 1,065,606 2,144,683 3,906,368
TOTAL LIABILITIES AND FUND BALANCES 301,971$ 394,108$ 1,083,415$ 2,144,683$ 3,924,177$
-106-
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, 2015
9010 9202 9233 9250
2016 Street
Fire City Hall Park Improvement
Capital Projects CIP Infrastructure Project Total
REVENUES
Taxes
Property taxes -$ -$ 304,880$ -$ 304,880$
Intergovernmental
County - - 11,686 - 11,686
Charges for services - - 66,347 - 66,347
Investment earnings 1,694 3,048 11,220 - 15,962
Miscellaneous - - 109,865 - 109,865
TOTAL REVENUES 1,694 3,048 503,998 - 508,740
EXPENDITURES
Current
General government - 5,048 - - 5,048
Capital outlay
Culture and recreation - - 538,790 - 538,790
Debt service
Bond issuance costs - - - 33,836 33,836
TOTAL EXPENDITURES - 5,048 538,790 33,836 577,674
EXCESS (DEFICIENCY) OF REVENUES
OVER (UNDER) EXPENDITURES 1,694 (2,000) (34,792) (33,836) (68,934)
OTHER FINANCING SOURCES
Transfers in 150,000 100,000 - - 250,000
Bonds issued - - - 2,075,000 2,075,000
Premium on bonds issued - - - 103,519 103,519
TOTAL OTHER FINANCING
SOURCES 150,000 100,000 - 2,178,519 2,428,519
NET CHANGE IN FUND BALANCES 151,694 98,000 (34,792) 2,144,683 2,359,585
FUND BALANCES, JANUARY 1 150,277 296,108 1,100,398 - 1,546,783
FUND BALANCES, DECEMBER 31 301,971$ 394,108$ 1,065,606$ 2,144,683$ 3,906,368$
-107-
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, 2015
(With comparative actual amounts for the year ended December 31, 2014)
2014
Actual Variance with Actual
Original Final Amounts Final Budget Amounts
REVENUES
Taxes
Property taxes 8,265,410$ 8,265,410$ 8,308,447$ 43,037$ 7,928,813$
Franchise taxes 440,000 440,000 442,556 2,556 438,541
Total taxes 8,705,410 8,705,410 8,751,003 45,593 8,367,354
Licenses and permits
Business regulatory licenses 65,580 65,580 75,355 9,775 66,344
Non-business licenses and permits 308,004 308,004 314,602 6,598 287,629
Total licenses and permits 373,584 373,584 389,957 16,373 353,973
Intergovernmental
Local government aid 595,055 595,055 595,055 - 174,036
Highway maintenance aid 174,000 174,000 190,051 16,051 174,763
Other Federal, state, and local grants 18,700 18,700 92,975 74,275 116,279
State insurance premium tax 211,000 211,000 255,884 44,884 231,653
Total intergovernmental 998,755 998,755 1,133,965 135,210 696,731
Charges for services
General government 171,542 171,542 178,230 6,688 290,857
Public safety 437,820 437,820 520,526 82,706 525,967
Public works 4,200 4,200 4,130 (70) 9,058
Culture and recreation 614,800 614,800 602,631 (12,169) 591,182
Total charges for services 1,228,362 1,228,362 1,305,517 77,155 1,417,064
Fines and forfeitures 366,000 366,000 232,272 (133,728) 213,085
Special assessments - - 2,846 2,846 12,763
Investment earnings 75,000 75,000 47,988 (27,012) 24,840
Miscellaneous 70,519 70,519 51,192 (19,327) 62,315
TOTAL REVENUES 11,817,630 11,817,630 11,914,740 97,110 11,148,125
Budgeted Amounts
2015
-109-
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, 2015
(With comparative actual amounts for the year ended December 31, 2014)
2014
Actual Variance with Actual
Original Final Amounts Final Budget Amounts
EXPENDITURES
Current
General government
Mayor and City Council
Personnel services 54,900$ 54,900$ 51,114$ 3,786$ 51,544$
Supplies 2,000 2,000 2,705 (705) 2,761
Other services and charges 42,111 42,111 42,302 (191) 28,199
Total 99,011 99,011 96,121 2,890 82,504
City hall
Supplies 27,000 27,000 23,873 3,127 31,499
Other services and charges 218,834 218,834 210,996 7,838 228,908
Total 245,834 245,834 234,869 10,965 260,407
City manager
Personnel services 335,900 335,900 348,783 (12,883) 337,206
Supplies 1,500 1,500 771 729 784
Other services and charges 27,891 27,891 30,247 (2,356) 23,422
Total 365,291 365,291 379,801 (14,510) 361,412
Elections
Personnel services - - - - 23,327
Supplies - - - - 924
Other services and charges 4,123 4,123 4,181 (58) 5,051
Total 4,123 4,123 4,181 (58) 29,302
Finance
Personnel services 151,000 151,000 156,983 (5,983) 152,763
Supplies 1,500 1,500 511 989 1,688
Other services and charges 122,211 122,211 126,073 (3,862) 108,720
Total 274,711 274,711 283,567 (8,856) 263,171
Auditing
Other services and charges 22,200 22,200 22,319 (119) 24,150
Assessing
Other services and charges 121,000 121,000 121,436 (436) 114,382
Legal
Other services and charges 35,000 35,000 37,535 (2,535) 35,312
Human resources
Personnel services 228,900 228,900 227,842 1,058 226,681
Supplies 1,000 1,000 402 598 516
Other services and charges 24,891 24,891 26,112 (1,221) 21,143
Total 254,791 254,791 254,356 435 248,340
Budgeted Amounts
2015
-110-
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, 2015
(With comparative actual amounts for the year ended December 31, 2014)
2014
Actual Variance with Actual
Original Final Amounts Final Budget Amounts
Budgeted Amounts
2015
EXPENDITURES - CONTINUED
Current - continued
General government - continued
Planning and zoning
Personnel services 103,800$ 103,800$ 51,053$ 52,747$ 64,007$
Supplies 850 850 672 178 609
Other services and charges 53,182 53,182 55,119 (1,937) 40,033
Total 157,832 157,832 106,844 50,988 104,649
Communication
Personnel services 95,300 95,300 96,267 (967) 93,743
Supplies 1,400 1,400 1,342 58 1,429
Other services and charges 47,616 47,616 45,066 2,550 41,450
Total 144,316 144,316 142,675 1,641 136,622
Total general government 1,724,109 1,724,109 1,683,704 40,405 1,660,251
Public safety
Police
Personnel services 4,311,200 4,311,200 4,103,929 207,271 3,882,171
Supplies 70,920 70,920 92,077 (21,157) 90,669
Other services and charges 994,834 994,834 1,013,480 (18,646) 866,243
Total 5,376,954 5,376,954 5,209,486 167,468 4,839,083
Police reserves
Personnel services 5,000 5,000 14,331 (9,331) 19,350
Supplies 4,505 4,505 3,644 861 3,602
Other services and charges 19,931 19,931 16,309 3,622 18,214
Total 29,436 29,436 34,284 (4,848) 41,166
Fire and safety
Personnel services - - - - 303
Supplies 5,000 5,000 995 4,005 (26)
Other services and charges 1,070,461 1,070,461 1,055,702 14,759 1,006,265
Total 1,075,461 1,075,461 1,056,697 18,764 1,006,542
Animal control
Personnel services 70,700 70,700 105,234 (34,534) 76,377
Supplies 1,020 1,020 196 824 251
Other services and charges 28,997 28,997 26,843 2,154 29,233
Total 100,717 100,717 132,273 (31,556) 105,861
-111-
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, 2015
(With comparative actual amounts for the year ended December 31, 2014)
2014
Actual Variance with Actual
Original Final Amounts Final Budget Amounts
Budgeted Amounts
2015
EXPENDITURES - CONTINUED
Current - continued
Public safety - continued
Protective inspection
Personnel services 342,600$ 342,600$ 335,952$ 6,648$ 307,293$
Supplies 3,350 3,350 3,518 (168) 1,939
Other services and charges 96,407 96,407 93,895 2,512 94,985
Total 442,357 442,357 433,365 8,992 404,217
Total public safety 7,024,925 7,024,925 6,866,105 158,820 6,396,869
Public works
Street maintenance
Personnel services 506,200 506,200 419,824 86,376 444,739
Supplies 128,080 128,080 96,055 32,025 107,483
Other services and charges 548,092 548,092 558,254 (10,162) 408,135
Total 1,182,372 1,182,372 1,074,133 108,239 960,357
Engineering
Other services and charges 30,000 30,000 37,959 (7,959) 48,900
Total public works 1,212,372 1,212,372 1,112,092 100,280 1,009,257
Culture and recreation
Recreation
Personnel services 529,500 529,500 535,022 (5,522) 515,393
Supplies 95,475 95,475 108,203 (12,728) 139,012
Other services and charges 229,214 229,214 228,691 523 185,189
Total 854,189 854,189 871,916 (17,727) 839,594
Parks
Personnel services 547,100 547,100 491,287 55,813 458,064
Supplies 37,500 37,500 31,355 6,145 30,882
Other services and charges 315,600 315,600 264,272 51,328 245,769
Total 900,200 900,200 786,914 113,286 734,715
Swimming pool
Personnel services 127,400 127,400 125,100 2,300 102,578
Supplies 40,240 40,240 33,150 7,090 32,778
Other services and charges 42,595 42,595 36,661 5,934 39,309
Total 210,235 210,235 194,911 15,324 174,665
Total culture and recreation 1,964,624 1,964,624 1,853,741 110,883 1,748,974
Total current expenditures 11,926,030 11,926,030 11,515,642 410,388 10,815,351
-112-
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, 2015
(With comparative actual amounts for the year ended December 31, 2014)
2014
Actual Variance with Actual
Original Final Amounts Final Budget Amounts
Budgeted Amounts
2015
EXPENDITURES - CONTINUED
Capital outlay
General government 25,000$ 25,000$ 2,447$ 22,553$ 18,748$
Public safety 112,100 112,100 109,277 2,823 245,610
Culture and recreation 3,500 3,500 2,256 1,244 -
Total capital outlay 140,600 140,600 113,980 26,620 264,358
TOTAL EXPENDITURES 12,066,630 12,066,630 11,629,622 437,008 11,079,709
EXCESS (DEFICIENCY) OF REVENUES
OVER (UNDER) EXPENDITURES (249,000) (249,000) 285,118 534,118 68,416
OTHER FINANCING SOURCES (USES)
Transfers in 249,000 249,000 224,000 (25,000) 419,461
Transfers out - - (250,000) (250,000) (250,000)
TOTAL OTHER FINANCING
SOURCES (USES)249,000 249,000 (26,000) (275,000) 169,461
NET CHANGE IN FUND BALANCES - - 259,118 259,118 237,877
FUND BALANCES, JANUARY 1 5,821,294 5,821,294 5,821,294 - 5,583,417
FUND BALANCES, DECEMBER 31 5,821,294$ 5,821,294$ 6,080,412$ 259,118$ 5,821,294$
-113-
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.
-115-
CITY OF NEW HOPE, MINNESOTA
INTERNAL SERVICE FUNDS
COMBINING STATEMENT OF NET POSITION
DECEMBER 31, 2015
9402 9408 9407 9410
Central Employee Insurance Information
Garage Leave Reserve Technology Totals
ASSETS
CURRENT ASSETS
Cash and temporary investments 4,545,612$ 784,819$ 619,952$ 313,004$ 6,263,387$
Receivables
Accounts - - 7,531 - 7,531
Due from other governments - - 1,564 - 1,564
Inventories 95,708 - - - 95,708
TOTAL CURRENT ASSETS 4,641,320 784,819 629,047 313,004 6,368,190
NONCURRENT ASSETS
Capital assets
Land 85,647 - - - 85,647
Buildings and structures 3,141,396 - - - 3,141,396
Vehicles and equipment 8,329,455 - - 344,383 8,673,838
Less: accumulated depreciation (7,891,555) - - (240,046) (8,131,601)
Total capital assets
(net of accumulated depreciation)3,664,943 - - 104,337 3,769,280
TOTAL ASSETS 8,306,263 784,819 629,047 417,341 10,137,470
DEFERRED OUTFLOW OF RESOURCES
Deferred pension resources 23,498 - - 3,629 27,127
LIABILITIES
CURRENT LIABILITIES
Accrued salaries payable 4,275 11,299 18,675 - 34,249
Accounts and contracts payable 52,444 - 1,090 37,855 91,389
Due to other governments 599 - - 16,456 17,055
Compensated absences payable, current portion - 53,726 - - 53,726
TOTAL CURRENT LIABILITIES 57,318 65,025 19,765 54,311 196,419
NONCURRENT LIABILITIES
Other postemployment benefits payable - - 269,019 - 269,019
Compensated absences payable - 483,531 - - 483,531
Pension liability 200,136 - - 30,908 231,044
TOTAL NONCURRENT LIABILITIES 200,136 483,531 269,019 30,908 983,594
TOTAL LIABILITIES 257,454 548,556 288,784 85,219 1,180,013
DEFERRED INFLOW OF RESOURCES
Deferred pension resources 38,573 - - 5,957 44,530
NET POSITION
Net investment in capital assets 3,664,943 - - 104,337 3,769,280
Unrestricted 4,368,791 236,263 340,263 225,457 5,170,774
TOTAL NET POSITION 8,033,734$ 236,263$ 340,263$ 329,794$ 8,940,054$
-116-
CITY OF NEW HOPE, MINNESOTA
INTERNAL SERVICE FUNDS
COMBINING STATEMENT OF REVENUES, EXPENSES AND
CHANGES IN NET POSITION
FOR THE YEAR ENDED DECEMBER 31, 2015
9402 9408 9407 9410
Central Employee Insurance Information
Garage Leave Reserve Technology Totals
OPERATING REVENUES
Billings to departments 1,765,082$ 566,898$ 54,036$ 805,110$ 3,191,126$
Other 7,412 - 57,899 - 65,311
TOTAL OPERATING REVENUES 1,772,494 566,898 111,935 805,110 3,256,437
OPERATING EXPENSES
Personnel services 242,962 490,565 38,075 21,170 792,772
Supplies 301,396 - - 58,211 359,607
Utilities 51,037 - - 36,831 87,868
Other services and charges 432,902 - 63,183 396,900 892,985
Depreciation 830,067 - - 22,623 852,690
TOTAL OPERATING EXPENSES 1,858,364 490,565 101,258 535,735 2,985,922
OPERATING INCOME (LOSS)(85,870) 76,333 10,677 269,375 270,515
NONOPERATING REVENUES (EXPENSES)
Investment earnings 44,044 7,008 5,697 552 57,301
Loss on sale of capital assets (6,132) - - - (6,132)
TOTAL NONOPERATING REVENUES
(EXPENSES)37,912 7,008 5,697 552 51,169
INCOME (LOSS) BEFORE TRANSFERS (47,958) 83,341 16,374 269,927 321,684
TRANSFERS OUT (30,000) - - (48,000) (78,000)
CHANGE IN NET POSITION (77,958) 83,341 16,374 221,927 243,684
NET POSITION, JANUARY 1
AS RESTATED (NOTE 4H)8,111,692 152,922 323,889 107,867 8,696,370
NET POSITION, DECEMBER 31 8,033,734$ 236,263$ 340,263$ 329,794$ 8,940,054$
-117-
CITY OF NEW HOPE, MINNESOTA
INTERNAL SERVICE FUNDS
COMBINING STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED DECEMBER 31, 2015
9402 9408 9407 9410
Central Employee Insurance Information
Garage Leave Reserve Technology Totals
CASH FLOWS FROM OPERATING ACTIVITIES
Receipts from interfund services provided 1,765,082$ 566,898$ 52,074$ 805,110$ 3,189,164$
Other operating receipts 7,412 - 57,899 - 65,311
Payments to suppliers (856,345) - (110,310) (460,413) (1,427,068)
Payments to employees (291,321) (473,023) 18,675 (76,902) (822,571)
NET CASH PROVIDED (USED)
BY OPERATING ACTIVITIES 624,828 93,875 18,338 267,795 1,004,836
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 (754,715) - - (29,773) (784,488)
CASH FLOWS FROM INVESTING ACTIVITIES
Investment earnings 44,044 7,008 5,697 552 57,301
NET INCREASE (DECREASE)
IN CASH AND CASH EQUIVALENTS (115,843) 100,883 24,035 190,574 199,649
CASH AND CASH EQUIVALENTS, JANUARY 1 4,661,455 683,936 595,917 122,430 6,063,738
CASH AND CASH EQUIVALENTS, DECEMBER 31 4,545,612$ 784,819$ 619,952$ 313,004$ 6,263,387$
RECONCILIATION OF OPERATING INCOME (LOSS)
TO NET CASH PROVIDED (USED)
BY OPERATING ACTIVITIES
Operating income (loss)(85,870)$ 76,333$ 10,677$ 269,375$ 270,515$
Adjustments to reconcile operating income (loss)
to net cash provided (used) by operating activities
Depreciation 830,067 - - 22,623 852,690
(Increase) decrease in assets
Accounts receivable - - (1,962) - (1,962)
Inventories (10,473) - - - (10,473)
(Increase) decrease in deferred inflows of resources
Deferred pension resources (23,498) - - (3,629) (27,127)
Increase (decrease) in liabilities
Accounts and contracts payable (36,478) - (360) 35,144 (1,694)
Accrued salaries payable (10,148) (25,772) 18,675 (5,749) (22,994)
Due to other governments (561) - (46,767) 14 (47,314)
Compensated absences payable - 43,314 - - 43,314
Other postemployment benefits payable - - 38,075 - 38,075
Pension liability (76,784) - - (55,940) (132,724)
Increase (decrease) in deferred outflows of resources
Deferred pension resources 38,573 - - 5,957 44,530
NET CASH PROVIDED (USED)
BY OPERATING ACTIVITIES 624,828$ 93,875$ 18,338$ 267,795$ 1,004,836$
SCHEDULE OF NONCASH CAPITAL AND
RELATED FINANCING ACTIVITIES
Loss on sale or disposal of capital assets 6,132$ -$ -$ -$ 6,132$
-118-
CITY OF NEW HOPE, MINNESOTA
COMBINING STATEMENT OF FIDUCIARY NET POSITION
AGENCY FUND
DECEMBER 31, 2015
9503 9504
Pass-Through Flexible
Grant Fund Spending Fund Total
ASSETS
80,249$ 3,738$ 83,987$
LIABILITIES
Deposits payable 80,249$ 3,738$ 83,987$
Cash and temporary investments
-119-
CITY OF NEW HOPE, MINNESOTA
AGENCY FUND
COMBINING STATEMENT OF CHANGES IN ASSETS AND LIABILITIES
FOR THE YEAR ENDED DECEMBER 31, 2015
Balance Balance
January 1 Additions Deductions December 31
PASS-THROUGH GRANT FUND
ASSETS
Cash and temporary investments 10,096$ 119,279$ (49,126)$ 80,249$
LIABILITIES
Deposits payable 10,096$ 119,279$ (49,126)$ 80,249$
FLEXIBLE SPENDING FUND
ASSETS
Cash and temporary investments -$ 3,738$ -$ 3,738$
LIABILITIES
Deposits payable -$ 3,738$ -$ 3,738$
TOTAL - ALL FUNDS
ASSETS
Cash and temporary investments 10,096$ 123,017$ (49,126)$ 83,987$
LIABILITIES
Deposits payable 10,096$ 123,017$ (49,126)$ 83,987$
-120-
STATISTICAL SECTION (UNAUDITED)
CITY OF NEW HOPE
NEW HOPE, MINNESOTA
FOR THE YEAR ENDED
DECEMBER 31, 2015
-121-
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.
-123-
2015 2014
REVENUES
Taxes
Property taxes 10,145,204$ 9,718,800$ 4.39 %
Tax increments 430,879 537,871 (19.89)
Franchise taxes 442,556 438,541 0.92
Licenses and permits 389,957 353,973 10.17
Intergovernmental 1,359,511 818,825 66.03
Charges for services 1,601,081 1,663,053 (3.73)
Fines and forfeitures 237,951 215,585 10.37
Special assessments 38,417 98,617 (61.04)
Investment earnings 274,116 248,013 10.52
Miscellaneous 202,057 129,980 55.45
TOTAL REVENUES 15,121,729$ 14,223,258$ 6.32 %
Per capita 727$ 683$ 6.32 %
EXPENDITURES
Current
General government 1,688,752$ 1,668,474$ 1.22 %
Public safety 6,866,105 6,397,860 7.32
Public works 1,328,371 1,225,551 8.39
Culture and recreation 1,853,741 1,761,961 5.21
Economic development 498,479 298,825 66.81
Capital outlay 8,204,964 3,000,518 173.45
Debt service
Principal 405,000 350,000 15.71
Interest 131,530 212,025 (37.96)
Bond issuance costs 114,607 2,200 100.00
TOTAL EXPENDITURES 21,091,549$ 14,917,414$ 41.39 %
Per capita 1,013$ 717$ 41.39 %
Total Long-term indebtedness 10,945,000$ 4,880,000$ 124.28 %
Per capita 526 234 124.28
General Fund Balance - December 31 6,080,412$ 5,821,294$ 4.45 %
Per capita 292 280 4.45
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, 2015
-125-
CITY OF NEW HOPE, MINNESOTA
STATISTICAL SECTION (UNAUDITED)
NET POSITION BY COMPONENT
LAST TEN FISCAL YEARS
(accrual basis of accounting)
2006 2007 2008 2009
Governmental activities
Net investment in capital assets 13,366,539$ 14,572,777$ 16,099,860$ 16,411,454$
Restricted 17,056,531 18,030,936 17,857,296 19,454,696
Unrestricted 6,049,538 7,399,637 8,643,991 9,151,912
Total governmental activities net position 36,472,608$ 40,003,350$ 42,601,147$ 45,018,062$
Business-type activities
Net investment in capital assets 7,817,568$ 8,018,286$ 9,008,538$ 9,395,068$
Restricted - - - -
Unrestricted 1,379,488 1,625,562 1,423,111 1,650,590
Total business-type activities net position 9,197,056$ 9,643,848$ 10,431,649$ 11,045,658$
Total primary government
Net investment in capital assets 21,184,107$ 22,591,063$ 25,108,398$ 25,806,522$
Restricted 17,056,531 18,030,936 17,857,296 19,454,696
Unrestricted 7,429,026 9,025,199 10,067,102 10,802,502
Total primary government 45,669,664$ 49,647,198$ 53,032,796$ 56,063,720$
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. The City implemented GASB Statement No.
67 and GASB Statement No. 68 in fiscal 2015. Net position information has not been restated for prior years.
-126-
2011
2010 (Restated)2012 2013 2014 2015
16,495,175$ 20,628,143$ 26,793,142$ 30,509,373$ 26,305,906$ 27,549,276$
9,279,142 6,018,734 1,619,696 1,619,394 5,680,117 5,917,848
21,971,477 21,845,278 22,746,207 23,704,592 23,130,558 14,623,043
47,745,794$ 48,492,155$ 51,159,045$ 55,833,359$ 55,116,581$ 48,090,167$
9,989,405$ 11,114,666$ 12,843,624$ 14,142,276$ 14,757,333$ 16,087,559$
- - 150,000 300,000 455,000 627,939
2,541,156 3,978,803 2,735,144 2,496,008 1,798,707 (825,297)
12,530,561$ 15,093,469$ 15,728,768$ 16,938,284$ 17,011,040$ 15,890,201$
26,484,580$ 31,742,809$ 39,636,766$ 44,651,649$ 41,063,239$ 43,636,835$
9,279,142 6,018,734 1,769,696 1,919,394 6,135,117 6,545,787
24,512,633 25,824,081 25,481,351 26,200,600 24,929,265 13,797,746
60,276,355$ 63,585,624$ 66,887,813$ 72,771,643$ 72,127,621$ 63,980,368$
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)
2006 2007 2008 2009
Expenses
Governmental activities
General government 3,683,505$ 3,547,855$ 2,492,386$ 2,244,977$
Public safety 4,739,744 5,291,323 5,988,010 6,218,996
Public works 1,514,119 650,686 1,381,386 1,291,983
Culture and recreation 1,897,571 1,868,403 1,967,129 2,053,788
Economic development - - - -
Interest on long-term debt 395,308 369,508 340,081 275,532
Total governmental activities expenses 12,230,247 11,727,775 12,168,992 12,085,276
Business-type activities
Sewer - - - -
Water 4,680,584 4,955,642 4,915,929 5,265,147
Golf course 420,223 440,666 383,521 369,579
Ice arena 724,020 723,264 780,816 694,039
Storm water 607,298 387,889 361,542 393,118
Street lighting 106,052 126,966 121,912 126,983
Total business-type activities expenses 6,538,177 6,634,427 6,563,720 6,848,866
Total expenses 18,768,424$ 18,362,202$ 18,732,712$ 18,934,142$
Program revenues
Governmental activities
Charges for services
General government 1,084,659$ 1,314,007$ 1,164,394$ 1,048,549$
Public safety 142,197 251,622 151,180 134,680
Public works 4,843 - - -
Culture and recreation 452,889 503,648 579,694 527,079
Economic development - - - -
Operating grants and contributions 263,548 270,403 388,166 586,508
Capital grants and contributions 151,934 392,468 63,947 117,544
Total governmental activities program revenues 2,100,070 2,732,148 2,347,381 2,414,360
Business-type activities
Charges for services
Sewer - - - -
Water 4,491,025 4,870,737 5,175,878 5,141,131
Golf course 345,828 337,712 330,782 345,550
Ice arena 622,428 610,145 659,377 723,975
Storm water 881,682 922,850 951,699 933,828
Street lighting 115,162 116,940 133,634 149,339
Operating grants and contributions 108,371 152,038 16,250 66,609
Capital grants and contributions 138,886 21,381 16,353 75,209
Total business-type activities program revenues 6,703,382 7,031,803 7,283,973 7,435,641
Total program revenues 8,803,452$ 9,763,951$ 9,631,354$ 9,850,001$
Fiscal Year
-128-
2011
2010 (Restated)2012 2013 2014 2015
2,552,425$ 1,841,145$ 1,931,318$ 1,837,194$ 1,976,377$ 1,700,133$
5,864,775 6,129,860 6,062,362 6,238,779 6,795,836 7,258,504
1,625,959 1,795,189 2,126,043 1,790,669 2,467,618 4,229,077
1,899,105 1,882,279 1,928,591 1,946,243 2,145,224 2,223,152
192,431 536,433 762,202 431,332 1,704,010 655,093
252,224 236,827 407,744 289,009 140,321 269,284
12,386,919 12,421,733 13,218,260 12,533,226 15,229,386 16,335,243
1,928,845 2,068,282 2,220,438 2,310,604 1,976,864 2,458,724
2,915,757 3,530,521 3,682,602 3,215,714 4,635,686 4,584,929
346,345 322,679 298,555 262,894 304,059 291,695
712,153 844,828 771,628 957,784 877,826 880,581
430,899 485,943 425,112 768,610 558,160 713,218
104,099 113,753 104,721 117,518 99,560 105,452
6,438,098 7,366,006 7,503,056 7,633,124 8,452,155 9,034,599
18,825,017$ 19,787,739$ 20,721,316$ 20,166,350$ 23,681,541$ 25,369,842$
984,855$ 220,629$ 177,174$ 198,297$ 234,440$ 254,333$
218,732 877,159 804,725 880,843 1,047,721 1,073,079
- 219,353 219,548 226,228 224,790 219,634
562,383 637,077 653,293 672,067 617,459 668,490
104,713 98,139 94,664 - - -
1,356,292 783,382 2,162,263 828,276 1,013,058 845,517
787,047 1,107,042 245,290 3,929,565 47,917 460,537
4,014,022 3,942,781 4,356,957 6,735,276 3,185,385 3,521,590
2,292,300 2,352,635 2,376,021 2,443,202 2,414,482 2,468,638
3,082,771 3,169,859 3,581,225 3,460,008 3,634,873 3,777,108
313,941 278,788 296,316 268,133 254,508 287,056
741,266 752,671 694,702 725,211 775,784 745,886
943,883 947,031 948,650 963,167 948,537 981,723
121,647 122,742 124,397 125,604 123,060 128,890
470,183 24,031 22,340 306,520 444,484 33,032
30,739 114,826 106,291 225,300 11,469 194,590
7,996,730 7,762,583 8,149,942 8,517,145 8,607,197 8,616,923
12,010,752$ 11,705,364$ 12,506,899$ 15,252,421$ 11,792,582$ 12,138,513$
Fiscal Year
-129-
CITY OF NEW HOPE, MINNESOTA
STATISTICAL SECTION (UNAUDITED)
CHANGES IN NET POSITION - CONTINUED
LAST TEN FISCAL YEARS
(accrual basis of accounting)
2006 2007 2008 2009
Net revenues (expenses)
Governmental activities (10,130,177)$ (8,995,627)$ (9,821,611)$ (9,670,916)$
Business-type activities 165,205 397,376 720,253 586,775
Total primary government revenues (expenses)(9,964,972)$ (8,598,251)$ (9,101,358)$ (9,084,141)$
General Revenues and Other Changes in Net Position
General Revenues
Governmental activities
Taxes
Property taxes 7,097,895$ 7,756,543$ 8,416,466$ 8,760,482$
Tax increments 1,195,726 1,673,394 1,835,749 1,262,598
Franchise taxes 433,806 444,898 441,133 438,744
Grants and contributions not
restricted to specific programs 1,497,688 600,221 666,543 755,762
Unrestricted investment earnings 1,155,967 1,698,749 992,673 723,565
Gain on sale of capital assets - - - -
Miscellaneous 599,337 352,564 96,911 146,680
Transfers (12,320) - (30,067) -
Total governmental activities general revenues 11,968,099 12,526,369 12,419,408 12,087,831
Business-type activities
Grants and contributions not
restricted to specific programs 5,089 - - -
Unrestricted investment earnings 32,878 49,416 37,481 27,234
Transfers 12,320 - 30,067 -
Total business-type activities general revenues 50,287 49,416 67,548 27,234
Total primary government 12,018,386$ 12,575,785$ 12,486,956$ 12,115,065$
Change in Net Position
Governmental activities 1,837,922$ 3,530,742$ 2,597,797$ 2,416,915$
Business-type activities 215,492 446,792 787,801 614,009
Total primary government 2,053,414$ 3,977,534$ 3,385,598$ 3,030,924$
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. The City
implemented GASB Statement No. 67 and GASB Statement No. 68 in fiscal 2015. Net position information has not
been restated for prior years.
-130-
2011
2010 (Restated)2012 2013 2014 2015
(8,372,897)$ (8,478,952)$ (8,861,303)$ (5,797,950)$ (12,044,001)$ (12,813,653)$
1,558,632 396,577 646,886 884,021 155,042 (417,676)
(6,814,265)$ (8,082,375)$ (8,214,417)$ (4,913,929)$ (11,888,959)$ (13,231,329)$
8,730,979$ 8,784,948$ 9,129,247$ 9,554,629$ 9,732,776$ 10,131,759$
1,408,256 1,400,163 1,343,248 511,924 537,871 430,879
430,494 439,795 440,149 438,834 438,541 442,556
79,529 87,206 47,662 49,005 179,537 600,030
337,312 745,484 429,595 198,658 324,498 331,417
22,930 13,568 69,321 37,201 - -
- - - - - -
91,129 (2,163,781) 68,971 (317,987) 114,000 68,204
11,100,629 9,307,383 11,528,193 10,472,264 11,327,223 12,004,845
- - - - - -
17,400 71,089 57,384 7,508 31,714 35,700
(91,129) 2,163,781 (68,971) 317,987 (114,000) (68,204)
(73,729) 2,234,870 (11,587) 325,495 (82,286) (32,504)
11,026,900$ 11,542,253$ 11,516,606$ 10,797,759$ 11,244,937$ 11,972,341$
2,727,732$ 828,431$ 2,666,890$ 4,674,314$ (716,778)$ (808,808)$
1,484,903 2,631,447 635,299 1,209,516 72,756 (450,180)
4,212,635$ 3,459,878$ 3,302,189$ 5,883,830$ (644,022)$ (1,258,988)$
Fiscal Year
-131-
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
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
2015 10,131,759 430,879 442,556 11,005,194
-133-
CITY OF NEW HOPE, MINNESOTA
STATISTICAL SECTION (UNAUDITED)
FUND BALANCES OF GOVERNMENTAL FUNDS
LAST TEN FISCAL YEARS
(modified accrual basis of accounting)
2006 2007 2008 2009
General fund
Reserved -$ -$ -$ -$
Unreserved 4,227,954 4,249,604 3,952,477 4,354,351
Nonspendable - - - -
Unassigned - - - -
Total general fund 4,227,954$ 4,249,604$ 3,952,477$ 4,354,351$
All other governmental funds
Reserved -$ -$ 2,433,162$ 4,699,636$
Unreserved, reported in
Special Revenue funds 4,385,348 4,748,023 2,993,986 3,266,399
Debt Service funds 6,294,149 5,992,108 6,571,884 6,450,295
Capital Project funds 5,458,640 6,569,745 5,962,599 5,317,588
Restricted - - - -
Committed - - - -
Assigned - - - -
Unassigned - - - -
Total all other governmental funds 16,138,137$ 17,309,876$ 17,961,631$ 19,733,918$
Total all governmental funds 20,366,091$ 21,559,480$ 21,914,108$ 24,088,269$
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
-134-
2011
2010 (Restated)2012 2013 2014 2015
63,753$ -$ -$ -$ -$ -$
4,527,847 - - - - -
- 14,366 14,925 15,484 16,005 16,765
- 4,920,846 5,080,812 5,567,933 5,805,289 6,063,647
4,591,600$ 4,935,212$ 5,095,737$ 5,583,417$ 5,821,294$ 6,080,412$
9,043,337$ -$ -$ -$ -$ -$
3,129,062 - - - - -
- - - - - -
9,771,932 - - - - -
- 6,114,114 5,657,606 5,550,819 5,687,949 8,069,238
- 4,666,447 5,165,192 4,511,073 4,771,304 5,431,288
- 6,877,641 6,533,868 8,204,338 7,839,792 5,496,484
- - - - (134,792) (226,356)
21,944,331$ 17,658,202$ 17,356,666$ 18,266,230$ 18,164,253$ 18,770,654$
26,535,931$ 22,593,414$ 22,452,403$ 23,849,647$ 23,985,547$ 24,851,066$
Fiscal Year
-135-
CITY OF NEW HOPE, MINNESOTA
STATISTICAL SECTION (UNAUDITED)
CHANGES IN FUND BALANCES OF GOVERNMENTAL FUNDS
LAST TEN FISCAL YEARS
(modified accrual basis of accounting)
2006 2007 2008 2009
Revenues
Property taxes 8,330,410$ 9,386,469$ 9,910,002$ 9,898,968$
Tax increments - - - -
Franchise taxes 433,806 444,898 441,133 438,744
Licenses and permits 289,534 332,351 415,012 226,303
Intergovernmental 1,731,191 970,543 1,038,461 1,401,010
Charges for services 1,036,710 1,149,810 1,125,819 1,166,302
Fines and forfeitures 266,750 247,794 285,255 236,173
Special assessments 310,708 326,909 203,199 157,581
Investment earnings - - - -
Miscellaneous 1,031,207 1,747,196 906,365 791,039
Total revenues 13,430,316 14,605,970 14,325,246 14,316,120
Expenditures
General government 1,771,012 1,959,594 1,949,002 1,726,566
Public safety 4,739,323 5,281,122 5,880,729 5,933,364
Public works 825,199 883,268 830,900 740,014
Culture and recreation 1,607,849 1,638,354 1,687,171 1,698,807
Economic development - - - -
Capital outlay 4,326,095 1,769,589 2,444,825 1,137,776
Debt service
Principal 940,000 1,525,000 820,000 885,000
Interest 432,698 357,654 357,991 273,100
Bond issuance costs - - - -
Total expenditures 14,642,176 13,414,581 13,970,618 12,394,627
Excess (deficiency) of revenues
over (under) expenditures (1,211,860) 1,191,389 354,628 1,921,493
Other financing sources (uses)
Transfers in - - 653,787 1,236,793
Sales of capital assets 510,000 2,000 - -
Bonds issued - - - -
Premium on bonds issued - - - -
Refunding bonds issued - - - -
Principal payments to refunded bond escrow agent - - - -
Transfers out (12,320) - (653,787) (984,125)
Total other financing
sources (uses)497,680 2,000 - 252,668
Net change in fund balances (714,180)$ 1,193,389$ 354,628$ 2,174,161$
Debt service as a percentage of
Noncapital expenditures 17.1%11.2%15.1%9.7%
Fiscal Year
-136-
2011
2010 (Restated)2012 2013 2014 2015
8,694,245$ 8,767,959$ 9,199,381$ 9,531,663$ 9,718,800$ 10,145,204$
1,408,256 1,400,163 1,343,248 511,924 537,871 430,879
430,494 439,795 440,149 438,834 438,541 442,556
236,378 359,530 238,943 273,117 353,973 389,957
1,765,220 1,599,253 858,816 4,463,113 818,825 1,359,511
1,369,904 1,544,369 1,557,898 1,585,964 1,663,053 1,601,081
238,961 255,329 283,233 239,201 215,585 237,951
258,392 153,835 305,818 178,335 98,617 38,417
393,913 548,548 307,032 178,217 248,013 274,116
87,607 115,183 80,073 111,443 129,980 202,057
14,883,370 15,183,964 14,614,591 17,511,811 14,223,258 15,121,729
1,883,729 1,560,511 1,567,301 1,571,701 1,668,474 1,688,752
5,791,511 5,933,201 5,946,209 5,967,599 6,397,860 6,866,105
989,734 1,079,884 1,192,760 1,254,201 1,225,551 1,328,371
1,599,381 1,560,486 1,599,041 1,613,518 1,761,961 1,853,741
192,431 289,650 304,064 582,621 298,825 498,479
2,605,724 5,263,935 7,685,819 4,239,938 3,000,518 8,204,964
515,000 1,005,000 330,000 340,000 350,000 405,000
273,054 247,973 270,613 306,462 212,025 131,530
- 93,820 104,351 - 2,200 114,607
13,850,564 17,034,460 19,000,158 15,876,040 14,917,414 21,091,549
1,032,806 (1,850,496) (4,385,567) 1,635,771 (694,156) (5,969,820)
2,596,321 2,477,195 936,188 360,427 669,461 3,209,226
1,954 - - 1,460 4,055,382 -
1,245,000 - - - - -
16,173 - 54,006 - - 171,339
- - 4,025,000 - - 6,470,000
- - - - (3,780,000) -
(2,444,592) (4,569,216) (770,638) (600,414) (477,461) (3,015,226)
1,414,856 (2,092,021) 4,244,556 (238,527) 467,382 6,835,339
2,447,662$ (3,942,517)$ (141,011)$ 1,397,244$ (226,774)$ 865,519$
9.8%6.4%4.1%5.6%4.5%3.5%
Fiscal Year
-137-
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
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
2015 10,145,204 430,879 442,556 11,018,639
-139-
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)
2006 2007 2008 2009
Taxable market value
Real property
Personal property
Total taxable market value
Estimated actual value of taxable property 1,571,305,700$ 1,692,471,900$ 1,750,807,800$ 1,732,235,700$
Taxable market value as a percentage of
estimated actual value
Tax capacity
Real property 18,838,116$ 20,386,553$ 21,248,319$ 21,095,335$
Personal property 163,526 172,470 151,679 146,456
Subtotal 19,001,642 20,559,023 21,399,998 21,241,791
Less: tax increment (1,024,773) (1,471,827) (1,646,615) (1,365,233)
Less: contribution to fiscal disparities (1,898,610) (2,035,088) (2,292,166) (2,518,620)
Add: distribution from fiscal disparities 2,647,714 2,806,702 3,398,192 3,821,605
Net tax capacity 18,725,973$ 19,858,810$ 20,859,409$ 21,179,543$
Tax levies
Revenue
Bonds and interest
Total
Tax capacity rate
Revenue
Bonds and interest
Sewer district
Total direct tax rate 42.375 %42.346 %41.995 %41.342 %
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
-140-
2010 2011 2012 2013 2014 2015
1,618,178,200$ 1,492,408,000$ 1,321,463,913$ 1,214,204,483$ 1,224,417,514$ 1,323,173,828$
7,624,400 8,162,100 8,515,600 9,657,700 10,849,800 11,343,900
1,625,802,600$ 1,500,570,100$ 1,329,979,513$ 1,223,862,183$ 1,235,267,314$ 1,334,517,728$
1,629,433,100$ 1,504,929,000$ 1,438,796,300$ 1,336,539,900$ 1,346,449,200$ 1,440,652,000$
99.78 %99.71 %92.44 %91.57 %91.74 %92.63 %
19,864,103$ 18,462,796$ 16,686,170$ 15,476,014$ 15,454,712$ 16,638,481$
148,346 159,492 165,812 188,654 211,746 221,628
20,012,449 18,622,288 16,851,982 15,664,668 15,666,458 16,860,109
(1,181,390) (1,044,830) (944,560) (366,752) (377,138) (338,715)
(2,596,468) (2,466,459) (2,380,423) (2,255,476) (2,154,731) (2,144,256)
3,946,315 3,896,651 3,605,075 3,448,346 3,437,911 3,505,922
20,180,906$ 19,007,650$ 17,132,074$ 16,490,786$ 16,572,500$ 17,883,060$
9,053,443$ 9,036,625$ 9,066,928$ 9,406,483$ 9,556,483$ 9,938,265$
39,268 192,105 161,802 164,325 161,487 163,902
9,092,711$ 9,228,730$ 9,228,730$ 9,570,808$ 9,717,970$ 10,102,167$
45.542 %47.916 %53.842 %57.802 %57.622 %55.073 %
0.199 1.025 0.967 1.010 0.974 0.905
0.273 0.308 0.387 - - -
46.014 %49.249 %55.196 %58.812 %58.596 %55.978 %
Fiscal Year
-141-
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
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
2015 55.073 0.905 - 55.978
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
-142-
County No. 281 Other Total
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
46.398 33.226 10.561 146.163
Overlapping Rates
School
District
-143-
CITY OF NEW HOPE, MINNESOTA
STATISTICAL SECTION (UNAUDITED)
PRINCIPAL PROPERTY TAXPAYERS
CURRENT YEAR AND NINE YEARS AGO (1)
Tax
Taxpayer Capacity Rank
FLS Properties 175,190$ 1 1.04 %
Paddock Property Ltd. Partnership 160,770 2 0.95
Allen Group, LLC 158,250 3 0.94
St. Therese Home, Inc.155,906 4 0.92
Colfin Industrial Holdings 151,070 5 0.90
STNL (New Hope), LLC 148,870 6 0.88
OMG Healthcare Investors 135,888 7 0.81
New Hope Property, LLC 135,000 8 0.80
Winnetka Mall, LLC 127,470 9 0.76
GLP US Management, LLC 125,910 10 0.75
Lang Nelson Association - - -
Minn Masonic Home North Ridge - - -
Geneva Management Service, LLC - - -
New Hope Distribution Center, LLC - - -
Welsh Navarre MN, LLC - - -
New Hope / US Swim Partnership - - -
Totals 1,474,324$ 8.75 %
Source: Hennepin County Auditor/Treasurer Department
(1) Information for nine years ago was not available, 2008 was the first year available.
Tax Capacity
2015
Percent
of Total
-144-
Tax
Capacity Rank
136,450$ 8 0.64 %
165,250 2 0.77
- - -
153,375 3 0.72
- - -
- - -
- - -
- - -
136,750 7 0.64
- - -
132,188 9 0.62
152,275 4 0.71
199,250 1 0.93
142,330 5 0.67
139,250 6 0.65
129,250 10 0.60
1,486,368$ 6.95 %
Tax Capacity
2008
Percent
of Total
-145-
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
2006 7,706,733$ 7,623,003$ 98.91 %83,730$ 7,706,733$ 100.00 %
2007 8,093,813 7,984,889 98.65 108,924 8,093,813 100.00
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 98.80 109,071 9,092,295 100.00
2011 9,228,730 9,063,615 98.21 160,983 9,224,598 99.96
2012 9,228,730 9,102,355 98.63 119,159 9,221,514 99.92
2013 9,570,808 9,429,858 98.53 127,812 9,557,670 99.86
2014 9,717,970 9,619,447 98.99 67,250 9,686,697 99.68
2015 10,102,167 10,017,500 99.16 - 10,017,500 99.16
Source: Hennepin County Auditor/Treasurer Department
(1) Includes state paid property tax credits.
Collected to Levy
Percent
Percentage of Total
of Levy Collections
-147-
CITY OF NEW HOPE, MINNESOTA
STATISTICAL SECTION (UNAUDITED)
RATIOS OF OUTSTANDING DEBT BY TYPE
LAST TEN FISCAL YEARS
General Special Tax
Fiscal Obligation Assessment Increment
Year Bonds Bonds Bonds
2006 1,515,000$ 2,020,000$ 6,395,000$
2007 1,065,000 1,180,000 5,875,000
2008 605,000 1,045,000 5,360,000
2009 225,000 910,000 4,795,000
2010 1,280,000 775,000 4,605,000
2011 1,245,000 - 4,410,000
2012 1,120,000 - 8,230,000
2013 1,000,729 - 8,065,761
2014 863,620 - 4,066,223
2015 2,898,167 - 8,250,291
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 155 for personal income and population data.
Governmental Activities
-148-
Lease General Tax Total
Revenue Obligation Revenue Increment Primary Per
Bonds Bonds Bonds Bonds Government Capita
-$ -$ 3,300,000$ -$ 13,230,000$ 1.20 %633$
- - 2,965,000 - 11,085,000 1.01 532
- - 2,620,000 - 9,630,000 0.87 462
- - 2,265,000 - 8,195,000 0.79 396
- - 2,930,000 - 9,590,000 0.83 472
3,505,000 - 2,360,095 - 11,520,095 1.04 562
3,505,000 - 2,033,000 - 14,888,000 1.25 717
3,505,000 - 2,723,628 - 15,295,118 1.24 732
3,505,000 - 2,352,553 - 10,787,396 0.86 518
3,505,000 1,831,607 2,151,635 1,587,602 20,224,302 1.52 972
Income
of Personal
Percentage
Business-type Activities
-149-
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
2006 9,930,000$ 6,294,149$ 3,635,851$ 0.278 %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 0.323 207
2015 11,148,458 759,386 10,389,072 0.721 499
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 155 for population data.
Percentage
See Tax Capacity, Market Value and Estimated Actual Value of Taxable Property on page 140 for property value data.
of Estimated
Actual Value
of Taxable
Property
-150-
CITY OF NEW HOPE, MINNESOTA
STATISTICAL SECTION (UNAUDITED)
COMPUTATION OF DIRECT AND OVERLAPPING DEBT
DECEMBER 31, 2015
City's
Outstanding Share
Debt of Debt
Direct debt
City of New Hope (1)11,148,458$ 100.00 %11,148,458$
Overlapping debt
Hennepin County 1,037,540,000$ 1.14 %11,827,956$
Independent School District #281, Robbinsdale 153,041,516 19.60 29,996,137
Metropolitan Council 1,485,891,649 0.53 7,875,226
Hennepin Region RR Authority 34,695,000 1.56 541,242
Three Rivers Park District 72,145,000 1.56 1,125,462
Total overlapping debt 2,783,313,165$ 1.85 %51,366,023$
Total direct and overlapping debt 2,794,461,623$ 2.24 %62,514,481$
(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.
-151-
CITY OF NEW HOPE, MINNESOTA
STATISTICAL SECTION (UNAUDITED)
LEGAL DEBT MARGIN INFORMATION
LAST TEN FISCAL YEARS
2006 2007 2008 2009
Debt limit 31,426,114$ 33,849,438$ 52,524,234$ 51,967,071$
Total net debt applicable to limit 191,516 108,094 72,562 37,561
Legal debt margin 31,234,598$ 33,741,344$ 52,451,672$ 51,929,510$
Total net debt applicable to the limit
as a percentage of debt limit 0.61%0.32%0.14%0.07%
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
-152-
2010 2011 2012 2013 2014 2015
48,774,078$ 45,017,103$ 39,899,385$ 36,715,865$ 37,058,019$ 40,035,532$
1,246,878 1,072,678 970,908 839,948 696,627 2,719,528
47,527,200$ 43,944,425$ 38,928,477$ 35,875,917$ 36,361,392$ 37,316,004$
2.56%2.38%2.43%2.29%1.88%6.79%
Taxable market value 1,334,517,728$
Debt limit (3 percent of market value)40,035,532$
Debt applicable to limit
General obligation bonds 2,898,167
Less: amount available in
debt service funds (178,639)
Total net debt applicable to limit 2,719,528
Legal debt margin 37,316,004$
Fiscal Year
Legal Debt Margin Calculation for Fiscal Year 2015
-153-
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
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
2015 8,039,067 7,925,903 113,164 201,000 97,584 37.90
(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)
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 20,812 60,601 1,261,228,012 39.4 12,390 2.9
2015 20,812 63,901 1,329,907,612 39.4 12,313 2.8
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.
PRINCIPAL EMPLOYERS
CURRENT YEAR AND NINE YEARS AGO
Employer Employment
2015
Percentage
of Total City
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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
Employment
2006
Percentage
of Total City
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CITY OF NEW HOPE, MINNESOTA
FULL-TIME EQUIVALENT CITY GOVERNMENT EMPLOYEES BY FUNCTION
LAST TEN FISCAL YEARS
2006 2007 2008 2009
General government 19 21 18 18
Public safety
Police
Officers 27 30 31 31
Civilians 6 7 7 7
Public works 21 23 23 21
Culture and recreation 9 9 8 8
Total 82 90 87 85
Source: Various City departments.
Function
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2010 2011 2012 2013 2014 2015
15 15 15 16 14 13
30 31 30 31 33 35
7 6 7 7 7 9
22 24 24 24 24 23
8 7 6 7 7 7
82 83 82 85 85 87
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CITY OF NEW HOPE, MINNESOTA
OPERATING INDICATORS BY FUNCTION
LAST EIGHT FISCAL YEARS
2008 2009 2010 2011 2012 2013 2014 2015
Function
Public works
Street resurfacing (miles)2 2 2 4 - - - 12
Potholes repaired 150 349 734 648 687 600 1,330 2,882
Culture and recreation
Program registration - adults 3,874 3,313 3,796 5,271 5,598 4,565 3,121 2,746
Program registration - youth 5,747 6,360 5,287 5,323 7,442 5,924 5,734 5,815
Attendance at sponsored events 140,600 139,318 137,199 146,305 148,966 144,000 122,478 124,777
Golf Course
Rounds of golf at the Municipal course 22,900 23,917 21,686 18,788 19,568 16,782 16,431 18,175
Ice Arena
Hours of ice time rental 3,905 4,027 3,980 3,903 3,558 3,739 3,734 3,683
Water
Water main breaks 33 37 19 32 26 30 27 21
Average daily consumption (thousands of gallons)2,003 1,921 1,746 1,712 1,828 1,682 1,571 1,559
Sewer
Average daily treatment (thousands of gallons)2,360 1,740 1,895 2,253 2,189 1,500 2,200 1,670
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
2006 2007 2008 2009
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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2010 2011 2012 2013 2014 2015
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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