2016 CAFR
CITY OF NEW HOPE
NEW HOPE, MINNESOTA
COMPREHENSIVE ANNUAL FINANCIAL REPORT
FOR THE YEAR ENDED
DECEMBER 31, 2016
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CITY OF NEW HOPE
HENNEPIN COUNTY, MINNESOTA
COMPREHENSIVE ANNUAL FINANCIAL REPORT
FOR THE YEAR ENDED
DECEMBER 31, 2016
KIRK MCDONALD - CITY MANAGER
PREPARED BY: DEPARTMENT OF FINANCE
Member GFOA of U.S. and Canada
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CITY OF NEW HOPE, MINNESOTA
COMPREHENSIVE ANNUAL FINANCIAL REPORT
TABLE OF CONTENTS
FOR THE YEAR ENDED DECEMBER 31, 2016
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
B a l a n c e S h e e t 3 6
R e c o n ciliation of the Balance Sheet to the Statement of Net Position 3 9
S t a t e m e n t o f R e v e n u e s , E x p e n d i t u r e s a n d C h a n g e s i n Fund Balances 40
R e c o n ciliation of the Statement of Revenues, Expenditures and
C h a n g e s i n F u n d B a l a n c e s t o t h e S t a t e m e n t o f A c t i vities 42
G e n e r a l F u n d
S t a t e m e n t o f R e v e n u e s , E x p e n d i t u r e s a n d C h a n g e s i n Fund Balances - Budget and Actual 43
E c o n o m i c D e v e l o p m e n t A u t h o r i t y F u n d
S t a t e m e n t o f R e v e n u e s , E x p e n d i t u r e s a n d C h a n g e s i n Fund Balances - Budget and Actual 45
Proprietary Funds
S t a t e m e n t o f N e t P o sition 46
S t a t e m e n t o f R e v e n u e s , E x p e n s e s a n d C h a n g e s i n N e t P o sition 50
S t a t e m e n t o f C a s h F l o w s 5 2
Fiduciary Funds
S t a t e m e n t o f F i d u c i a r y N e t P o sition 56
Notes to the Financial Statements 57
Required Supplementary Information
Schedule of Employer’s and Non-Employer Contributing Entity’s Share of
Public Employees Retirement Association Net Pension Liability - General Employees Retirement Fund 94
Schedule of Employer’s Public Employees Retirement Association Contributions -
General Employees Retirement Fund 94
Schedule of Employer’s Share of Public Employees Retirement Association Net Pension Liability -
Public Employees Police and Fire Fund 95
Schedule of Employer’s Public Employees Retirement Association Contributions -
Public Employees Police and Fire Fund 95
Schedule of Employer’s Funding Progress for the Other Post-Employment Benefit Plan 95
Combining and Individual Fund Financial Statements and Schedules
Nonmajor Governmental Funds
Combining Balance Sheet 100
Combining Statement of Revenues, Expenditures and Changes in Fund Balances 101
Nonmajor Special Revenue Funds
Subcombining Balance Sheet 104
Subcombining Statement of Revenues, Expenditures and Changes in Fund Balances 105
Schedule of Revenues, Expenditures, and Changes in Fund Balances - Budget and Actual
S o l i d W a s t e M a n a g e m e n t F u n d 1 0 6
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CITY OF NEW HOPE, MINNESOTA
COMPREHENSIVE ANNUAL FINANCIAL REPORT
TABLE OF CONTENTS - CONTINUED
FOR THE YEAR ENDED DECEMBER 31, 2016
Page No.
Combining and Individual Fund Financial Statements and Schedules - Continued
Nonmajor Capital Projects Funds
Subcombining Balance Sheet 108
Subcombining Statement of Revenues, Expenditures and Changes in Fund Balances 109
General Fund
Schedule of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual 111
Internal Service Funds
Combining Statement of Net Position 118
Combining Statement of Revenues, Expenses and Changes in Net Position 119
Combining Statement of Cash Flows 120
Agency Funds
Combining Statement of Fiduciary Net Position 121
Combining Statement of Changes in Assets and Liabilities 122
STATISTICAL SECTION (UNAUDITED)
Financial Trends
Summary Financial Report
R e v e n u e s a n d E x p e n d i t u r e s f o r G e n e r a l O p e r a t i o n s - G o v e r n m e ntal Funds 127
Net Position by Component 128
Changes in Net Position 130
Governmental Activities Tax Revenues by Source 135
Fund Balances of Governmental Funds 136
Changes in Fund Balances of Governmental Funds 138
General Government Tax Revenues by Source 141
Revenue Capacity
Tax Capacity, Market Value and Estimated Actual Value of Taxable Property 142
Property Tax Capacity Rates - Direct and Overlapping Governmen t s 1 4 4
Principal Property Taxpayers 146
Property Tax Levies and Collections 149
Debt Capacity
Ratios of Outstanding Debt by Type 150
Ratios of General Bonded Debt Outstanding 152
Computation of Direct and Overlapping Debt 153
Legal Debt Margin Information 154
Pledged Revenue Coverage 156
Demographic and Economic Information
Demographic and Economic Statistics 157
Principal Employers 158
Operating Information
Full-Time Equivalent City Government Employees by Function 160
Operating Indicators by Function 162
Capital Asset Statistics by Function 164
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INTRODUCTORY SECTION
CITY OF NEW HOPE
NEW HOPE, MINNESOTA
FOR THE YEAR ENDED
DECEMBER 31, 2016
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May 10, 2017
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, 2016, is submitted herewith. As required by state law, this report is published annually, prior to June 30, and submitted
to the Office of the State Auditor. The form and contents of this report and the accompanying financial statements and statistical tables
are designed to meet the needs of a broad spectrum of financial statement readers, and were prepared in conformance with standards
set forth by:
1.The Governmental Accounting Standards Board (GASB)
2.The American Institute of Certified Public Accountants
3.The United States Office of Management and Budget
4.The State Auditor, State of Minnesota
5.The Government Finance Officers' Association (GFOA) of the United States and Canada
The financial data presented in this report was prepared by the City's finance department staff. The responsibility for the accuracy of
the presented data and the completeness and fairness of the presentation, including all disclosures, rests with the City. We believe the
data as presented is accurate in all material respects and is presented in a manner designed to fairly set forth the financial activity of
the various funds, and that all disclosures necessary to enable the reader to gain the maximum understanding of the City's financial
activity have been included.
Accounting principles generally accepted in the United States of America require that management provide a narrative introduction,
overview, and analysis to accompany the basic financial statements in the form of the Management's Discussion and Analysis
(MD&A). This letter of transmittal is designed to complement the MD&A and should be read in conjunction with it. The City's
MD&A can be found immediately following the report of the independent auditors.
PROFILE OF THE GOVERNMENT
The City is a residential suburb of the City of Minneapolis with a population of 21,225. 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
4401Xylon 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
Hy-Vee Grocery and convenience store 627
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 2016. 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 2016, $37,740,765 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 2016:
Alatus Development
The city approved the preliminary plat, rezoning of the property and site plan review approvals for Alatus, LLC, who will construct a
182-unit luxury apartment building located at 8400 Bass Lake Road. The City Council has also approved the Development Agreement
and final plat for the development, including the vacation of the existing easements on the property.
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 opened its doors in February 2016.
Dunkin’ Donuts
In 2015, the city approved a variance and site plan review in order to allow the construction of a 2,200 sandwich shop at 7820 42nd
Avenue. The property was then sold to a different developer, who proposed a new Dunkin’ Donuts on the site. In 2016, the Dunkin’
Donuts building was complete, marking the franchise’s reemergence into the Twin Cities Metro area.
Industrial Equities
The city approved the Site Plan for the construction of a new 48,000-square foot “clean industry” building at 9449 Science Center
Drive, with construction completed in 2016. The building is designed to accommodate up to eight different tenants, and required Tax
Increment Financing assistance to help correct soil issues on the property.
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 in 2015. In 2016, they continued construction of the 60-unit
development, and are on pace to complete construction in 2017.
Avtec Finishing Systems
The city approved the site plan for a 20,000-square foot addition to the existing building located at 9101 Science Center Drive. Avtec
Finishing Systems specializes in metal plate finishing, and desires to expand their operations. The proposed 20,763-square foot
addition will improve workflow through added space and remodeling. The proposed expansion will enlarge the shipping and receiving
operations and will also include a new two-story office. Along with the building addition, the parking lot will also be enlarged to
accommodate the minimum code requirements.
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Northwest Church of Christ
The city approved a Conditional Use Permit to allow a 13,400-square foot addition to the existing Northwest Church of Christ. The
church purchased the single-family house to the north of their property in order to accommodate the addition.
Xylon Avenue Streetscape Improvements
In 2016, the city completed the Xylon Avenue infrastructure and streetscape improvements. The approximately $5M of improvements
included 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. Continued work included the incorporation of street banners, lighted trees during the holiday season, and
hanging seasonal planters.
Space Needs Study
The City of New Hope has spent the last three years working with Wold Architects conducting a space needs study for the possibility
of constructing a new police station and city hall. The proposal includes constructing a new facility where the current swimming pool
is located, and relocating the pool to a different location on the property. The space needs analysis indicates that the new police station
and city hall would be increased to 57,592-square feet in area, with the space for the police department doubling in size. This
expansion is needed to accommodate staffing needs. The existing building is 26,740-square feet in comparison.
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 2016 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 2016 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 seven
properties, resulting in the creation of ten 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., 4511 Boone
Ave., and 5400 Yukon Ave. Three of the lots in question were large enough to split into two buildable lots.
Four lots were sold to developers in 2016 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 - 955 inspections completed in 2016.
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 536 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.
2. Metropolitan Council Livable Communities Act - annually renewed by the City.
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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. In addition, the city programs the New Hope Community Gyms
during non-school time.
In 2016, several park projects took place including the replacement of the playground and the addition of a looped trail at Northwood
Park, addition of safety netting at Victory Park, court resurfacing of the basketball courts (Hidden Valley Park, Northwood Park, Fred
Sims Park) and Buckthorn removal. The City also worked with Three Rivers Park District on the addition of the Bassett Creek
Regional Trail that runs through Northwood Park. During the 2015-2016 winter season parks staff plowed a section of trail at Hidden
Valley Park and recycling was offered at both Hidden Valley and Civic Center parks. 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 a popular summer destination for
many residents and is also rented by local swim teams for practices during non-public swim time. The ice arena offers year-round use
of ice time for youth, adult recreational, league hockey and skating lessons. In 2016, a sponsorship was received by Hy-Vee for the
scoreboard, the south rink dasherboards were re-set, radiant heaters in the south rink were replaced, a Little Free Library was added,
the boys lower level bathroom and showers were remodeled and the dryland training agreement was renewed with Charleston’s
Overspeed Hockey Training for three years. 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.
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 2016 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, 2015. 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, 2016
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
Bernie Weber Acting Director of Public Works
Jeff Sargent 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, 2016
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C ERTIFIED
A CCOUNTANTS
P UBLIC
PRINCIPALS
Thomas A. Karnowski, CPA
Paul A. Radosevich, CPA
William J. Lauer, CPA
James H. Eichten, CPA
Aaron J. Nielsen, CPA
Victoria L. Holinka, CPA/CMA
Malloy, Montague, Karnowski, Radosevich & Co., P.A.
5353 Wayzata Boulevard • Suite 410 • Minneapolis, MN 55416 • Phone: 952-545-0424 • Fax: 952-545-0569 • www.mmkr.com
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, 2016, 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, 2016, 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.
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 Governmental Accounting Standards Board, who
considers it to be an essential part of financial reporting for placing the basic financial statements in an
appropriate operational, economic, or historical context. We have applied certain limited procedures to
the 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 10, 2017
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 10, 2017
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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, 2016. We encourage readers to
consider the information presented here in conjunction with additional information that we have furnished in our letter of transmittal,
which starts on page 5 of this report.
Financial Highlights
The assets 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 $64,242,990 (net position). Of this amount, $9,242,448 (unrestricted net position) may be
used to meet the City’s ongoing obligations to citizens and creditors.
The City’s total net position increased by $1,359,866. This was primarily a result of business type activities increasing net
position $2,425,410.
As of the close of the current fiscal year, the City’s governmental funds reported combined ending fund balances of
$21,386,314, a decreased of $2,367,508 in comparison with the prior year. Approximately 15.2 percent of this total amount
($3,240,121) 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 $6,255,436 or 49.6 percent of total
General fund 2016 expenditures and transfers out.
The City’s total noncurrent liabilities increased by $14,821,363 (53.9 percent) during the current fiscal year. The key factors
of this increase were the issuance of the 2016A bond and an increase in the pension liability of $10,333,595.
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, 2016 Street Improvement Project, 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 94 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 100 of this report.
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Government-wide Financial Analysis
As noted earlier, net position may serve over time as a useful indicator of a government’s financial position. In the case of the City,
assets and deferred outflows of resources exceeded liabilities and deferred inflows of resources by $64,242,990 at the close of the
most recent fiscal year.
A portion of the City’s net position (76.6 percent) reflects its investment in capital assets (e.g., land, buildings, vehicles and
equipment); less any related debt used to acquire those assets that is still outstanding. The City uses these capital assets to provide
services to citizens; consequently, these assets are not available for future spending. Although the City’s investment in its capital
assets is reported net of related debt, it should be noted that the resources needed to repay this debt must be provided from other
sources, since the capital assets themselves cannot be used to liquidate these liabilities.
City of New Hope’s Summary of Net Position
Increase Increase
2016 2015 (Decrease) 2016 2015 (Decrease)
Assets
Current and other assets 35,131,178$ 37,332,307$ (2,201,129)$ 2,647,641$ 2,861,435$ (213,794)$
Capital assets, net of depreciation 37,215,771 31,451,906 5,763,865 28,041,607 23,266,980 4,774,627
Total assets 72,346,949 68,784,213 3,562,736 30,689,248 26,128,415 4,560,833
Deferred outflows of resources
Deferred pension resources 9,856,323 1,254,526 8,601,797 388,999 83,083 305,916
Liabilities
Other liabilities 1,535,425 2,731,275 (1,195,850) 538,977 359,801 179,176
Noncurrent liabilities 30,191,488 17,648,905 12,542,583 12,103,893 9,825,113 2,278,780
Total liabilities 31,726,913 20,380,180 11,346,733 12,642,870 10,184,914 2,457,956
Deferred inflows of resources
Deferred pension resources 1,802,318 1,568,392 233,926 119,766 136,383 (16,617)
Resources received in advance 2,746,662 - 2,746,662 - - -
Total deferred inflows of resources 4,548,980 1,568,392 2,980,588 119,766 136,383 (16,617)
Net position
Net investment in capital assets 29,951,754 27,549,276 2,402,478 19,286,134 16,087,559 3,198,575
Restricted 4,893,801 5,917,848 (1,024,047) 868,853 627,939 240,914
Unrestricted 11,081,824 14,623,043 (3,541,219) (1,839,376) (825,297) (1,014,079)
Total net position 45,927,379$ 48,090,167$ (2,162,788)$ 18,315,611$ 15,890,201$ 2,425,410$
Governmental Activities Business-type Activities
An additional portion of the City’s net position, $5,762,654, represents resources that are subject to external restrictions on how they
may be used. The remaining balance of unrestricted net position, $9,242,448, may be used to meet the City’s ongoing obligations to
citizens and creditors.
At the end of the current fiscal year, the City is able to report a positive balance in all three categories of net position for the
governmental activities but not for the business-type activities, which reported a deficit balance in unrestricted net position. The
increase in assets was a result of the capital project activity. The increase in deferred inflows for resources received in advance relates
to cash received for Municipal State Aid funding which, due to timing requirements, has not yet been recognized as revenue. The
increase in noncurrent liabilities was a result of the issuance of debt and an increase in the City’s net pension liability.
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The following table indicates the changes in net position for the City’s governmental and business-type activities:
City of New Hope’s Changes in Net Position
Increase Increase
2016 2015 (Decrease)2016 2015 (Decrease)
Revenues
Program revenues
Charges for services 2,243,516$ 2,215,536$ 27,980$ 8,992,026$ 8,389,301$ 602,725$
Operating grants and contributions 1,002,681 845,517 157,164 159,898 33,032 126,866
Capital grants and contributions 711,527 460,537 250,990 1,394,822 194,590 1,200,232
General revenues
Taxes
Property taxes 10,843,702 10,131,759 711,943 - - -
Tax increments 492,584 430,879 61,705 - - -
Franchise taxes 447,248 442,556 4,692 - - -
Grants and contributions not
restricted to specific programs 633,056 600,030 33,026 - - -
Unrestricted investment earnings 377,960 331,417 46,543 44,708 35,700 9,008
Total revenues 16,752,274 15,458,231 1,294,043 10,591,454 8,652,623 1,938,831
Expenses
General government 1,871,736 1,700,133 171,603 - - -
Public safety 9,463,124 7,258,504 2,204,620 - - -
Public works 3,143,421 4,229,077 (1,085,656) - - -
Culture and recreation 2,405,905 2,223,152 182,753 - - -
Economic development 732,106 655,093 77,013 - - -
Interest on long-term debt 323,326 269,284 54,042 - - -
Sewer utility - - - 2,187,006 2,458,724 (271,718)
Water utility - - - 3,633,022 4,584,929 (951,907)
Golf course - 341,776 291,695 50,081
Ice arena - - - 949,438 880,581 68,857
Storm water - - - 830,108 713,218 116,890
Street lighting - - - 102,894 105,452 (2,558)
Total expenses 17,939,618 16,335,243 1,604,375 8,044,244 9,034,599 (990,355)
Changes in net position before transfers (1,187,344) (877,012) (310,332) 2,547,210 (381,976) 2,929,186
Transfers - capital assets - (47,796) 47,796 - 47,796 (47,796)
Transfers - internal activities 121,800 116,000 5,800 (121,800) (116,000) (5,800)
Change in net position (1,065,544) (808,808) (256,736) 2,425,410 (450,180) 2,875,590
Net position, January 1 48,090,167 48,898,975 (808,808) 15,890,201 16,340,381 (450,180)
Prior period adjustment, see note 5 (1,097,244) - (1,097,244) - - -
Net position, December 31 45,927,379$ 48,090,167$ (2,162,788)$ 18,315,611$ 15,890,201$ 2,425,410$
Governmental Activities Business-type Activities
The decrease in public works expenses were a result of capital outlay related to street and other capital improvement projects
completed in 2015. The increase in public safety expenses was a result of an increase in the PEPFF pension liability and recognition of
pension expense. The increase in economic development expenses were a result of capital outlay related to housing and
redevelopment projects. The increase in property taxes were a result of an increase in the capital levy, which will be used to fund
current and future street projects.
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Governmental activities. Governmental activities decreased the City’s net position by $1,065,544.
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
$8,500,000
$9,000,000
$9,500,000
$10,000,000
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
13.4%Operating grants and
contributions
6.0%
Capital grants and
contributions
4.2%
Property taxes
64.7%
Tax increments
2.9%
Franchise taxes
2.7%
Grants and
contributions
unrestricted
3.8%
Unrestricted investment
earnings
2.3%
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Business-type activities. The net position of business-type activities increased by $2,425,410. This increase was primarily the result
of a capital contribution of $1,383,268 received in the storm water fund and operating net income in the Sewer and Water Utility funds
of $452,393 and $315,798, respectively.
Below are the graphs showing the business-type activities revenue and expense comparisons.
Expense and Program Revenues - Business-type Activities
$-
$500,000
$1,000,000
$1,500,000
$2,000,000
$2,500,000
$3,000,000
$3,500,000
$4,000,000
$4,500,000
Sewer utility Water utility Golf course Ice arena Storm water Street lighting
Expenses Program revenues
Revenue Sources - Business-type Activities
Charges for services
84.9%
Operating grants and
contributions
1.5%
Capital grants and
contributions
13.2%
Unrestricted
investment earnings
0.4%
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Financial Analysis of the Government’s Funds
As noted earlier, the City uses fund accounting to ensure and demonstrate compliance with finance-related legal requirements.
Governmental funds. The focus of the City’s governmental funds is to provide information on near-term inflows, outflows, and
balances of spendable resources. Such information is useful in assessing the City’s financing requirements. In particular, unassigned
fund balance may serve as a useful measure of a government’s net resources available for spending at the end of the fiscal year.
As of the end of the current fiscal year, the City’s governmental funds had combined ending fund balances of $21,386,314, a decrease
of $2,367,508 in comparison with the prior year. Approximately 15.2 percent of this total amount, $3,240,121, 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 ($18,242), 2) restricted ($7,772,782),
3) committed ($5,397,075), or 4) assigned ($4,958,094). For further classification refer to Note 3F on page 79 of this report.
Activity in the City’s major funds is discussed below:
Increase
2016 2015 (Decrease)
General 6,273,678$ 6,080,412$ 193,266$
Economic Development Authority 5,198,723$ 5,236,971$ (38,248)$
HRA Construction 4,581,670$ 5,612,741$ (1,031,071)$
Street Infrastructure (2,274,312)$ 768,047$ (3,042,359)$
2016 Street Improvement Project (144,448)$ 2,144,683 (2,289,131)$
The decrease in fund balance is a result of spending related to the project.
HRA Bonds (330,252)$ (226,356)$ (103,896)$
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 49.6 percent of total 2016 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 decrease in fund balance is primarily a result of transfers to other funds for capital projects.
This fund accounts for capital outlay expenditures related to street infrastructure. The decrease was partially a result of project costs exceeding
current year revenues due to completion of projects started in prior years. The decrease was also the result of a prior period adjustment of $1,097,244
to recognize a deferred inflow of resources received in advance for Municipal State Aid funding. See Note 5 for further information on the prior
period adjustment.
The decrease in fund balance is primarily due to current expenditures exceeding current year revenues due to losses recorded related to the sale of
land held for resale, and a transfer out to the General fund.
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 a deficit of
$818,584. Other factors concerning the finances of these funds have already been addressed in the discussion of the City’s business-
type activities.
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General Fund Budgetary Highlights
The City’s General fund budget was not amended during the year. Revenues provided negative budget variances and expenditures
provided positive budget variances. Actual revenues were under budget by $22,784, and expenditures were under budget by $491,050.
Revenue line items with significant budget variances include the following:
Licenses and permits were over budget by $72,718, due to more than expected building activity.
Intergovernmental revenue was over budget by $115,719, mostly due to more than expected state and local grants.
Fines and forfeitures and miscellaneous revenues were under budget by $177,715 and $66,867, respectively.
Expenditure line items with significant budget variances include the following:
Public Safety expenditures were under budget by $323,231, mostly due to personal services for the police department coming
in under budget by $437,793.
General Government expenditures were under budget by $98,406, mostly due to personal services for the planning and
zoning department coming in under budget by $69,678.
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 2016.
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, 2016, was
$65,257,378 (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 19.3 percent.
Major capital asset events during the current fiscal year consisted of:
Multiple vehicle and equipment purchases were made for a total of $915,085.
Several capital projects were completed and started in 2016, including the completion of the 2015 Infrastructure project,
sanitary sewer lining project and the Victory Park improvements.
City of New Hope’s Capital Assets
(net of depreciation)
Increase Increase
2016 2015 (Decrease)2016 2015 (Decrease)
Land 994,268$ 994,268$ -$ 485,042$ 485,042$ -$
Buildings and structures 3,181,297 3,450,327 (269,030) 6,693,557 6,882,979 (189,422)
Vehicles and equipment 2,685,012 2,759,375 (74,363) 695,772 664,159 31,613
Improvements other than
buildings 19,811,943 18,576,435 1,235,508 13,666,790 12,385,811 1,280,979
Construction in progress 10,543,251 5,671,501 4,871,750 6,500,446 2,848,989 3,651,457
Total 37,215,771$ 31,451,906$ 5,763,865$ 28,041,607$ 23,266,980$ 4,774,627$
Business-type ActivitiesGovernmental Activities
Additional information on the City’s capital assets can be found in Note 3C starting on page 70 of this report.
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Long-term debt. At the end of the current fiscal year, the City had total bonded debt outstanding of $24,627,169. Of this amount
$5,479,075 will be paid from general property taxes and $7,875,000 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 $145,066, of which $185,186 is restricted for the payment of debt
service and a deficit of $330,252 is unassigned. The City made efforts to shift the philosophy for financing major street improvements
away from debt financing to the pay-as-you-go philosophy. The City established the Street and Park Infrastructure capital projects
funds in 2001 with dedicated portions of the property tax levy, thereby reducing the need for this type of debt issuance.
City of New Hope’s Outstanding Debt
Increase Increase
2016 2015 (Decrease)2016 2015 (Decrease)
G.O. bonds and certificates 5,682,679$ 2,898,167$ 2,784,512$ 3,934,522$ 1,831,607$ 2,102,915$
G.O. tax increment bonds 7,968,655 8,250,291 (281,636) 1,586,242 1,587,602 (1,360)
Lease revenue bonds - - - 3,505,000 3,505,000 -
G.O. revenue bonds and notes - - - 1,950,071 2,151,635 (201,564)
Pension liability 15,656,213 5,694,171 9,962,042 1,079,176 707,623 371,553
Compensated absences 566,645 537,257 29,388 - - -
Other postemployment benefits 317,296 269,019 48,277 48,882 41,646 7,236
Total 30,191,488$ 17,648,905$ 12,542,583$ 12,103,893$ 9,825,113$ 2,278,780$
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 74 of this report.
Economic Factors and Next Year’s Budgets and Rates
ECONOMIC OUTLOOK
User charges have been increased to account for various utility improvements scheduled for 2017 and beyond.
The overall tax levy had a 10.68 percent increase in 2017.
Management provided a long-term plan to City Council in 2016 that will highlight the tax effect of major capital and
operating decisions. This will also be an important document when preparing future budgets.
Requests for Information
This financial report is designed to provide a general overview of the City’s finances for all those with an interest in the City’s
finances. Questions concerning any of the information provided in this report or requests for additional financial information should
be addressed to the finance department, City of New Hope, 4401 Xylon Avenue North, New Hope, Minnesota 55428.
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GOVERNMENT-WIDE FINANCIAL STATEMENTS
CITY OF NEW HOPE
NEW HOPE, MINNESOTA
FOR THE YEAR ENDED
DECEMBER 31, 2016
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THIS PAGE IS LEFT BLANK
INTENTIONALLY
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CITY OF NEW HOPE, MINNESOTA
STATEMENT OF NET POSITION
DECEMBER 31, 2016
Governmental Business-type
Activities Activities Total
ASSETS
Cash and temporary investments 24,436,951$ 3,347,968$ 27,784,919$
Cash held with fiscal agent - 868,853 868,853
Receivables
Taxes 218,177 - 218,177
Accrued interest 48,249 - 48,249
Accounts 282,196 1,147,914 1,430,110
Loans 352,012 - 352,012
Special assessments 302,238 207,254 509,492
Internal balances 3,533,853 (3,533,853) -
Due from other governments 167,609 391,110 558,719
Inventories 84,776 49,886 134,662
Prepaid items 18,242 - 18,242
Land held for resale 4,339,085 - 4,339,085
Investment in joint ventures 1,347,790 168,509 1,516,299
Capital assets
Land and construction in progress 11,537,519 6,985,488 18,523,007
Depreciable assets (net of accumulated deprecation)25,678,252 21,056,119 46,734,371
TOTAL ASSETS 72,346,949 30,689,248 103,036,197
DEFERRED OUTFLOWS OF RESOURCES
Deferred pension resources 9,856,323 388,999 10,245,322
LIABILITIES
Accrued salaries payable 179,931 25,931 205,862
Accounts and contracts payable 1,162,980 277,473 1,440,453
Due to other governments 69,368 173,297 242,665
Accrued interest payable 112,523 62,276 174,799
Deposits payable 10,623 - 10,623
Noncurrent liabilities
Due within one year 580,162 293,504 873,666
Due in more than one year 29,611,326 11,810,389 41,421,715
TOTAL LIABILITIES 31,726,913 12,642,870 44,369,783
DEFERRED INFLOWS OF RESOURCES
Deferred pension resources 1,802,318 119,766 1,922,084
Resources received in advance 2,746,662 - 2,746,662
TOTAL DEFERRED INFLOWS OF RESOURCES 4,548,980 119,766 4,668,746
NET POSITION
Net investment in capital assets 29,951,754 19,286,134 49,237,888
Restricted for
Economic development 4,581,670 - 4,581,670
Debt service 179,645 868,853 1,048,498
Public safety police expenses 127,392 - 127,392
Ice arena 5,094 - 5,094
Unrestricted 11,081,824 (1,839,376) 9,242,448
TOTAL NET POSITION
The notes to the financial statements are an integral part of this statement.
45,927,379$ 18,315,611$ 64,242,990$
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The notes to the financial statements are an integral part of this statement.
CITY OF NEW HOPE, MINNESOTA
STATEMENT OF ACTIVITIES
FOR THE YEAR ENDED DECEMBER 31, 2016
Operating Capital
Charges for Grants and Grants and
Expenses Services Contributions Contributions
Governmental activities
General government 1,871,736$ 267,970$ 128,175$ -$
Public safety 9,463,124 1,035,725 345,948 -
Public works 3,143,421 220,208 191,424 711,527
Culture and recreation 2,405,905 699,613 34,530 -
Economic development 732,106 20,000 302,604 -
Interest on long-term debt 323,326 ---
Total governmental activities 17,939,618 2,243,516 1,002,681 711,527
Business-type activities
Sewer utility 2,187,006 2,627,875 131,944 -
Water utility 3,633,022 4,124,346 18,736 11,554
Golf course 341,776 315,162 260 -
Ice arena 949,438 749,689 8,241 -
Storm water 830,108 1,037,429 717 1,383,268
Street lighting 102,894 137,525 --
Total business-type activities 8,044,244 8,992,026 159,898 1,394,822
Total 25,983,862$ 11,235,542$ 1,162,579$ 2,106,349$
General revenues
Taxes
Property taxes
Tax increments
Franchise taxes
Grants and contributions not restricted to specific programs
Unrestricted investment earnings
Transfers - internal activities
Total general revenues and transfers
Change in net position
Net position, January 1
Prior period adjustment (Note 5)
Net position, December 31
Functions/Programs
Program Revenues
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The notes to the financial statements are an integral part of this statement.
Governmental Business-type
Activities Activities Total
(1,475,591)$ -$(1,475,591)$
(8,081,451) -(8,081,451)
(2,020,262) -(2,020,262)
(1,671,762) -(1,671,762)
(409,502) -(409,502)
(323,326) -(323,326)
(13,981,894) -(13,981,894)
-572,813 572,813
-521,614 521,614
-(26,354)(26,354)
-(191,508)(191,508)
-1,591,306 1,591,306
-34,631 34,631
-2,502,502 2,502,502
(13,981,894) 2,502,502 (11,479,392)
10,843,702 -10,843,702
492,584 -492,584
447,248 -447,248
633,056 -633,056
377,960 44,708 422,668
121,800 (121,800) -
12,916,350 (77,092) 12,839,258
(1,065,544) 2,425,410 1,359,866
48,090,167 15,890,201 63,980,368
(1,097,244) -(1,097,244)
45,927,379$ 18,315,611$ 64,242,990$
Net (Expenses) Revenues
and Changes in Net Position
-33-
THIS PAGE IS LEFT BLANK
INTENTIONALLY
-34-
FUND FINANCIAL STATEMENTS
CITY OF NEW HOPE
NEW HOPE, MINNESOTA
FOR THE YEAR ENDED
DECEMBER 31, 2016
-35-
The notes to the financial statements are an integral part of this statement.
CITY OF NEW HOPE, MINNESOTA
BALANCE SHEET
GOVERNMENTAL FUNDS
DECEMBER 31, 2016
9001 9015/9501 9213-9226 9203
Economic
Development HRA Street
General Authority Construction Infrastructure
ASSETS
Cash and temporary investments 5,720,923$ 798,032$ 3,864,302$ 1,636,645$
Receivables
Taxes 216,335 - 921 -
Accrued interest 40,720 - --
Accounts 104,696 76,093 - -
Loans - 352,012 - -
Special assessments 41,251 15,935 - 160,036
Due from other governments 151,119 - - -
Prepaid items 18,242 - - -
Due from other funds 370,074 538,958 - -
Advances to other funds - 1,568,443 - -
Land held for resale - 1,905,923 2,433,162 -
TOTAL ASSETS 6,663,360$ 5,255,396$ 6,298,385$ 1,796,681$
LIABILITIES
Accrued salaries payable 113,225$ 5,807$ -$ -$
Accounts and contracts payable 98,673 32,796 1,838 347,695
Due to other governments 23,257 1,751 - 21,158
Deposits payable 10,239 384 - -
Due to other funds - - 146,434 75,000
Advances from other funds - - 1,568,443 675,000
TOTAL LIABILITIES 245,394 40,738 1,716,715 1,118,853
DEFERRED INFLOWS OF RESOURCES
Unavailable revenue - taxes 103,037 - - -
Unavailable revenue - special assessments 41,251 15,935 - 205,478
Resources received in advance - - - 2,746,662
TOTAL DEFERRED INFLOWS OF RESOURCES 144,288 15,935 - 2,952,140
FUND BALANCES
Nonspendable 18,242 - - -
Restricted - - 4,581,670 -
Committed - 5,198,723 - -
Assigned - -- -
Unassigned 6,255,436 - - (2,274,312)
TOTAL FUND BALANCES 6,273,678 5,198,723 4,581,670 (2,274,312)
TOTAL LIABILITIES, DEFERRED INFLOWS
OF RESOURCES, AND FUND BALANCES 6,663,360$ 5,255,396$ 6,298,385$ 1,796,681$
-36-
The notes to the financial statements are an integral part of this statement.
9250 9117-9119
2016 Street Other Total
Improvement Governmental Governmental
Project HRA Bonds Funds Funds
-$ 61,351$ 5,529,945$ 17,611,198$
- 921 - 218,177
- -7,529 48,249
- -23,329 204,118
- -- 352,012
- -85,016 302,238
- -16,490 167,609
- -- 18,242
- -304,282 1,213,314
- -2,588,705 4,157,148
- -- 4,339,085
-$ 62,272$ 8,555,296$ 28,631,390$
-$ -$ -$ 119,032$
144,448 - 397,032 1,022,482
- - - 46,166
- - - 10,623
- 392,524 - 613,958
- -- 2,243,443
144,448 392,524 397,032 4,055,704
- - - 103,037
- - 77,009 339,673
- - - 2,746,662
- - 77,009 3,189,372
- - - 18,242
- - 3,191,112 7,772,782
- - 198,352 5,397,075
- - 4,958,094 4,958,094
(144,448) (330,252) (266,303) 3,240,121
(144,448) (330,252) 8,081,255 21,386,314
-$ 62,272$ 8,555,296$ 28,631,390$
-37-
THIS PAGE IS LEFT BLANK
INTENTIONALLY
-38-
The notes to the financial statements are an integral part of this statement.
CITY OF NEW HOPE, MINNESOTA
RECONCILIATION OF THE BALANCE SHEET
TO THE STATEMENT OF NET POSITION
GOVERNMENTAL FUNDS
DECEMBER 31, 2016
Total fund balances - governmental funds 21,386,314$
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 48,651,406
Less: accumulated depreciation (15,068,852)
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 (13,354,075)
Plus: unamortized bond premium (297,259)
Pension liability (15,373,775)
Internal service funds are used by management to charge certain costs of services to individual funds.
The assets and liabilities are included in the statement of net position.
Internal service fund net position included in governmental activities 9,301,308
Internal balances for internal services used by business-type activities 1,020,792
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 103,037
Special assessments 339,673
Governmental funds do not report long-term amounts related to pensions
Deferred outflows of pension resources 9,754,516
Deferred inflows of pension resources (1,770,973)
Governmental funds do not report a liability for accrued interest until due and payable.(112,523)
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.1,347,790
Total net position - governmental activities 45,927,379$
-39-
The notes to the financial statements are an integral part of this statement.
CITY OF NEW HOPE, MINNESOTA
STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES
GOVERNMENTAL FUNDS
FOR THE YEAR ENDED DECEMBER 31, 2016
9001 9015/9501 9213-9226 9203
Economic
Development HRA Street
General Authority Construction Infrastructure
REVENUES
Taxes
Property taxes 8,954,626$ 150,000$ -$ 1,254,514$
Tax increments - - 177,361 -
Franchise taxes 447,248 - - -
Licenses and permits 466,548 - - -
Intergovernmental 1,170,180 302,604 - 574,272
Charges for services 1,324,624 - - -
Fines and forfeitures 188,285 - - -
Special assessments 11,751 18,800 - 125,092
Investment earnings 18,421 80,748 62,479 8,475
Miscellaneous 633 - 20,000 -
TOTAL REVENUES 12,582,316 552,152 259,840 1,962,353
EXPENDITURES
Current
General government 1,735,964 - - -
Public safety 7,162,572 - - -
Public works 1,389,553 - - -
Culture and recreation 1,932,431 - - -
Economic development - 555,766 32,401 -
Capital outlay
General government 14,450 - - -
Public safety 139,280 - - -
Public works - - - 3,907,468
Culture and recreation - - - -
Economic development - 12,142 113,440 -
Debt service
Principal - - - -
Interest - - - -
Bond issuance costs - - - -
TOTAL EXPENDITURES 12,374,250 567,908 145,841 3,907,468
EXCESS (DEFICIENCY) OF REVENUES
OVER (UNDER) EXPENDITURES 208,066 (15,756) 113,999 (1,945,115)
OTHER FINANCING SOURCES (USES)
Transfers in 235,200 9,008 - -
Bonds issued - - - -
Premium on bonds issued - - - -
Transfers out (250,000) (31,500) (1,145,070) -
TOTAL OTHER FINANCING SOURCES (USES)(14,800) (22,492) (1,145,070) -
NET CHANGE IN FUND BALANCES 193,266 (38,248) (1,031,071) (1,945,115)
FUND BALANCES, JANUARY 1 6,080,412 5,236,971 5,612,741 768,047
PRIOR PERIOD ADJUSTMENT (NOTE 5)- - - (1,097,244)
FUND BALANCES, DECEMBER 31 6,273,678$ 5,198,723$ 4,581,670$ (2,274,312)$
-40-
The notes to the financial statements are an integral part of this statement.
9250 9117-9119
2016 Street Other Total
Improvement Governmental Governmental
Project HRA Bonds Funds Funds
-$ -$ 509,845$ 10,868,985$
- 315,223 - 492,584
- -- 447,248
- -- 466,548
- -16,490 2,063,546
- -247,174 1,571,798
- -3,675 191,960
- -17,515 173,158
38,324 75 95,730 304,252
- - 21,470 42,103
38,324 315,298 911,899 16,622,182
- - 136,472 1,872,436
- - 5,530 7,168,102
- - 216,816 1,606,369
- - 5,700 1,938,131
- - - 588,167
- - - 14,450
- - - 139,280
2,292,891 - 1,397,297 7,597,656
- - 343,996 343,996
- - - 125,582
- 275,000 140,000 415,000
34,564 144,194 78,903 257,661
- - 58,188 58,188
2,327,455 419,194 2,382,902 22,125,018
(2,289,131) (103,896) (1,471,003) (5,502,836)
- - 1,386,062 1,630,270
- - 2,824,075 2,824,075
- - 107,553 107,553
- - - (1,426,570)
- - 4,317,690 3,135,328
(2,289,131) (103,896) 2,846,687 (2,367,508)
2,144,683 (226,356) 5,234,568 24,851,066
- - - (1,097,244)
(144,448)$ (330,252)$ 8,081,255$ 21,386,314$
-41-
The notes to the financial statements are an integral part of this statement.
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, 2016
Total net change in fund balances - governmental funds (2,367,508)$
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 7,465,001
Depreciation expense (1,565,073)
The City's investment in a joint venture is not a current financial resource and, therefore, is not
reported as an asset in the governmental funds, but is included in the Statement of Net Position.
Contributions to joint venture (728,941)
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 415,000
Bond issued (2,824,075)
Premium on bonds issued (107,553)
Amortization of bond premium 13,752
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.(21,229)
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 (25,283)
Special assessments (35,903)
Long-term pension activity is not reported in governmental funds
Pension expense (1,671,025)
Direct aid contributions 40,383
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 361,254
Less: the change in internal balances for internal services used by business-type activities (14,344)
Change in net position - governmental activities (1,065,544)$
-42-
The notes to the financial statements are an integral part of this statement.
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, 2016
Budgeted Amounts Actual Variance with
Original Final Amounts Final Budget
REVENUES
Taxes
Property taxes 8,898,654$ 8,898,654$ 8,954,626$ 55,972$
Franchise taxes 440,000 440,000 447,248 7,248
Licenses and permits 393,830 393,830 466,548 72,718
Intergovernmental 1,054,461 1,054,461 1,170,180 115,719
Charges for services 1,334,655 1,334,655 1,324,624 (10,031)
Fines and forfeitures 366,000 366,000 188,285 (177,715)
Special assessments - - 11,751 11,751
Investment earnings 50,000 50,000 18,421 (31,579)
Miscellaneous 67,500 67,500 633 (66,867)
TOTAL REVENUES 12,605,100 12,605,100 12,582,316 (22,784)
EXPENDITURES
Current
General government 1,834,370 1,834,370 1,735,964 98,406
Public safety 7,485,803 7,485,803 7,162,572 323,231
Public works 1,382,874 1,382,874 1,389,553 (6,679)
Culture and recreation 2,000,053 2,000,053 1,932,431 67,622
Capital outlay
General government 20,000 20,000 14,450 5,550
Public safety 138,700 138,700 139,280 (580)
Culture and recreation 3,500 3,500 - 3,500
TOTAL EXPENDITURES 12,865,300 12,865,300 12,374,250 491,050
EXCESS (DEFICIENCY) OF REVENUES
OVER (UNDER) EXPENDITURES (260,200) (260,200) 208,066 468,266
OTHER FINANCING SOURCES (USES)
Transfers in 260,200 260,200 235,200 (25,000)
Transfers out - - (250,000) (250,000)
TOTAL OTHER FINANCING
SOURCES (USES)260,200 260,200 (14,800) (275,000)
NET CHANGE IN FUND BALANCES - - 193,266 193,266
FUND BALANCES, JANUARY 1 6,080,412 6,080,412 6,080,412 -
FUND BALANCES, DECEMBER 31 6,080,412$ 6,080,412$ 6,273,678$ 193,266$
-43-
THIS PAGE IS LEFT BLANK
INTENTIONALLY
-44-
The notes to the financial statements are an integral part of this statement.
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, 2016
Actual Variance with
Original Final Amounts Final Budget
REVENUES
Taxes
Property taxes 150,000$ 150,000$ 150,000$ -$
Intergovernmental - - 302,604 302,604
Special assessments 3,000 3,000 18,800 15,800
Investment income 20,000 20,000 80,748 60,748
TOTAL REVENUES 173,000 173,000 552,152 379,152
EXPENDITURES
Economic development
Current
Personnel services 244,100 244,100 298,631 (54,531)
Supplies 150 150 90 60
Other services and charges 159,706 159,706 257,045 (97,339)
Capital outlay 60,000 60,000 12,142 47,858
TOTAL EXPENDITURES 463,956 463,956 567,908 (103,952)
DEFICIENCY OF REVENUES
UNDER EXPENDITURES (290,956) (290,956) (15,756) 275,200
OTHER FINANCING SOURCES (USES)
Transfers in - - 9,008 9,008
Transfers out (31,500) (31,500) (31,500) -
TOTAL OTHER
FINANCING SOURCES (USES)(31,500) (31,500) (22,492) 9,008
NET CHANGE IN FUND BALANCES (322,456) (322,456) (38,248) 284,208
FUND BALANCES, JANUARY 1 5,236,971 5,236,971 5,236,971 -
FUND BALANCES, DECEMBER 31 4,914,515$ 4,914,515$ 5,198,723$ 284,208$
Budgeted Amounts
-45-
The notes to the financial statements are an integral part of this statement.
CITY OF NEW HOPE, MINNESOTA
STATEMENT OF NET POSITION - CONTINUED ON THE FOLLOWING PAGES
PROPRIETARY FUNDS
DECEMBER 31, 2016
9300 9301 9302 9303
Sewer Utility Water Utility Golf Course Ice Arena
ASSETS
CURRENT ASSETS
Cash and temporary investments 970,738$ 1,373,244$ 108,033$ -$
Cash held with fiscal agent - - - 868,853
Receivables
Accounts 262,827 711,008 - 70,982
Special assessments 57,369 126,558 - -
Due from other governments - 894 - 44,300
Inventories - 43,646 6,240 -
TOTAL CURRENT ASSETS 1,290,934 2,255,350 114,273 984,135
NONCURRENT ASSETS
Investment in joint ventures - 168,509 - -
Capital assets
Land - - 250,625 -
Buildings and structures - - 973,145 9,846,887
Improvements other than buildings 5,184,500 7,902,949 130,373 -
Vehicles and equipment 607,475 1,392,767 168,678 380,653
Construction in progress 885,638 2,123,699 - -
Less: accumulated depreciation (2,339,948) (2,904,566) (936,625) (3,685,219)
Total capital assets
(net of accumulated depreciation)4,337,665 8,514,849 586,196 6,542,321
TOTAL NONCURRENT ASSETS 4,337,665 8,683,358 586,196 6,542,321
TOTAL ASSETS 5,628,599 10,938,708 700,469 7,526,456
DEFERRED OUTFLOWS OF RESOURCES
Deferred pension resources 88,846 115,893 24,083 93,838
Business-type Activities - Enterprise Funds
-46-
The notes to the financial statements are an integral part of this statement.
CITY OF NEW HOPE, MINNESOTA
STATEMENT OF NET POSITION - CONTINUED
PROPRIETARY FUNDS
DECEMBER 31, 2016
9300 9301 9302 9303
Sewer Utility Water Utility Golf Course Ice Arena
LIABILITIES
CURRENT LIABILITIES
Accrued salaries payable 5,400$ 12,042$ 814$ 6,359$
Accounts and contracts payable 79,996 78,329 1,432 48,043
Due to other governments 400 157,829 756 13,924
Accrued interest payable 7,734 36,546 - 4,790
Due to other funds 125,000 104,282 - 370,074
Compensated absences payable, current portion - - - -
Bonds and notes payable, current portion 10,458 209,745 - -
TOTAL CURRENT LIABILITIES 228,988 598,773 3,002 443,190
NONCURRENT LIABILITIES
Advances from other funds 1,125,000 788,705 - -
Other postemployment benefits payable 13,631 13,788 3,163 10,892
Pension Liability 246,479 321,515 66,811 260,329
Compensated absences payable - - - -
Bonds and notes payable 974,101 4,266,809 - 3,505,000
TOTAL NONCURRENT LIABILITIES 2,359,211 5,390,817 69,974 3,776,221
TOTAL LIABILITIES 2,588,199 5,989,590 72,976 4,219,411
DEFERRED INFLOWS OF RESOURCES
Deferred pension resources 27,354 35,681 7,415 28,891
NET POSITION
Net investment in capital assets 4,615,551 4,256,896 586,196 3,037,321
Restricted for debt service - - - 868,853
Unrestricted (1,513,659) 772,434 57,965 (534,182)
TOTAL NET POSITION 3,101,892$ 5,029,330$ 644,161$ 3,371,992$
Business-type Activities - Enterprise Funds
-47-
The notes to the financial statements are an integral part of this statement.
CITY OF NEW HOPE, MINNESOTA
STATEMENT OF NET POSITION - CONTINUED
PROPRIETARY FUNDS
DECEMBER 31, 2016
Governmental
Activities -
9304 9305 Internal
Storm Water Street Lighting Totals Service Funds
ASSETS
CURRENT ASSETS
Cash and temporary investments 596,428$ 299,525$ 3,347,968$ 6,825,753$
Cash held with fiscal agent - - 868,853 -
Receivables
Accounts 95,230 7,887 1,147,934 78,078
Special assessments 20,685 2,642 207,254 -
Due from other governments 345,896 - 391,090 -
Inventories - - 49,886 84,776
TOTAL CURRENT ASSETS 1,058,239 310,054 6,012,985 6,988,607
NONCURRENT ASSETS
Investment in joint ventures - - 168,509 -
Capital assets
Land 234,417 - 485,042 85,647
Buildings and structures - - 10,820,032 3,141,396
Improvements other than buildings 5,279,917 - 18,497,739 -
Vehicles and equipment - - 2,549,573 8,850,174
Construction in progress 3,491,109 - 6,500,446 -
Less: accumulated depreciation (944,867) - (10,811,225) (8,444,000)
Total capital assets
(net of accumulated depreciation)8,060,576 - 28,041,607 3,633,217
TOTAL NONCURRENT ASSETS 8,060,576 - 28,210,116 3,633,217
TOTAL ASSETS 9,118,815 310,054 34,223,101 10,621,824
DEFERRED OUTFLOWS OF RESOURCES
Deferred pension resources 66,339 - 388,999 101,807
Business-type Activities - Enterprise Funds
-48-
The notes to the financial statements are an integral part of this statement.
CITY OF NEW HOPE, MINNESOTA
STATEMENT OF NET POSITION - CONTINUED
PROPRIETARY FUNDS
DECEMBER 31, 2016
Governmental
Activities -
9304 9305 Internal
Storm Water Street Lighting Totals Service Funds
LIABILITIES
CURRENT LIABILITIES
Accrued salaries payable 1,316$ -$ 25,931$ 60,899$
Accounts and contracts payable 60,068 9,605 277,473 140,498
Due to other governments 388 - 173,297 23,202
Accrued interest payable 13,206 - 62,276 -
Due to other funds - - 599,356 -
Compensated absences payable, current portion - - - 56,665
Bonds and notes payable, current portion 73,301 - 293,504 -
TOTAL CURRENT LIABILITIES 148,279 9,605 1,431,837 281,264
NONCURRENT LIABILITIES
Advances from other funds - - 1,913,705 -
Other postemployment benefits payable 7,408 - 48,882 317,296
Pension Liability 184,042 - 1,079,176 282,438
Compensated absences payable - - - 509,980
Bonds and notes payable 1,936,421 - 10,682,331 -
TOTAL NONCURRENT LIABILITIES 2,127,871 - 13,724,094 1,109,714
TOTAL LIABILITIES 2,276,150 9,605 15,155,931 1,390,978
DEFERRED INFLOWS OF RESOURCES
Deferred pension resources 20,425 - 119,766 31,345
NET POSITION
Net investment in capital assets 6,790,170 - 19,286,134 3,633,217
Restricted for debt service - - 868,853 -
Unrestricted 98,409 300,449 (818,584) 5,668,091
TOTAL NET POSITION 6,888,579$ 300,449$ 19,336,403$ 9,301,308$
Total net position - enterprise funds 19,336,403$
Adjustment to reflect the consolidation of internal service fund
activities related to the enterprise funds (1,020,792)
Net position - business-type activities 18,315,611$
Business-type Activities - Enterprise Funds
-49-
The notes to the financial statements are an integral part of this statement.
CITY OF NEW HOPE, MINNESOTA
STATEMENT OF REVENUES, EXPENSES AND
CHANGES IN NET POSITION
PROPRIETARY FUNDS
FOR THE YEAR ENDED DECEMBER 31, 2016
9300 9301 9302 9303
Sewer Utility Water Utility Golf Course Ice Arena
OPERATING REVENUES
Charges for services 2,627,875$ 3,835,031$ 299,856$ 713,649$
Billings to departments - - - -
Other - - - -
TOTAL OPERATING REVENUES 2,627,875 3,835,031 299,856 713,649
OPERATING EXPENSES
Cost of goods sold 1,385,105 2,361,126 24,402 -
Personnel services 305,950 336,366 139,270 311,065
Supplies 12,863 86,667 27,922 25,014
Utilities 9,821 611 22,912 211,257
Other services and charges 320,711 467,695 85,947 135,722
Depreciation 141,032 266,768 38,487 207,086
TOTAL OPERATING EXPENSES 2,175,482 3,519,233 338,940 890,144
OPERATING INCOME (LOSS)452,393 315,798 (39,084) (176,495)
NONOPERATING REVENUES (EXPENSES)
Investment earnings - 11,049 1,377 13,890
Miscellaneous revenues 1,252 308,051 15,566 44,281
Intergovernmental 130,692 - - -
Gain on sale of capital assets - - - -
Bond issuance costs (4,800) (22,100) - -
Interest expense (17,649) (91,320) - (59,747)
TOTAL NONOPERATING
REVENUES (EXPENSES)109,495 205,680 16,943 (1,576)
INCOME (LOSS) BEFORE CONTRIBUTIONS
AND TRANSFERS 561,888 521,478 (22,141) (178,071)
CAPITAL CONTRIBUTIONS - 11,554 - -
TRANSFERS OUT (49,140) (51,240) - -
CHANGE IN NET POSITION 512,748 481,792 (22,141) (178,071)
NET POSITION, JANUARY 1 2,589,144 4,547,538 666,302 3,550,063
NET POSITION, DECEMBER 31 3,101,892$ 5,029,330$ 644,161$ 3,371,992$
Business-type Activities - Enterprise Funds
-50-
The notes to the financial statements are an integral part of this statement.
CITY OF NEW HOPE, MINNESOTA
STATEMENT OF REVENUES, EXPENSES AND
CHANGES IN NET POSITION - CONTINUED
PROPRIETARY FUNDS
FOR THE YEAR ENDED DECEMBER 31, 2016
Governmental
Activities -
9304 9305 Internal
Storm Water Street Lighting Totals Service Funds
OPERATING REVENUES
Charges for services 1,037,429$ 137,525$ 8,651,365$ -$
Billings to departments - - - 3,246,182
Other - - - 77,187
TOTAL OPERATING REVENUES 1,037,429 137,525 8,651,365 3,323,369
OPERATING EXPENSES
Cost of goods sold - - 3,770,633 -
Personnel services 247,486 - 1,340,137 785,319
Supplies 3,962 - 156,428 303,651
Utilities - 101,060 345,661 90,274
Other services and charges 407,811 1,852 1,419,738 963,650
Depreciation 138,345 - 791,718 878,365
TOTAL OPERATING EXPENSES 797,604 102,912 7,824,315 3,021,259
OPERATING INCOME (LOSS)239,825 34,613 827,050 302,110
NONOPERATING REVENUES (EXPENSES)
Investment earnings 14,354 4,038 44,708 73,708
Miscellaneous revenues 717 - 369,867 -
Intergovernmental - - 130,692 -
Gain on sale of capital assets - - - 67,336
Bond issuance costs (15,000) - (41,900) -
Interest expense (23,657) - (192,373) -
TOTAL NONOPERATING
REVENUES (EXPENSES)(23,586) 4,038 310,994 141,044
INCOME (LOSS) BEFORE CONTRIBUTIONS
AND TRANSFERS 216,239 38,651 1,138,044 443,154
CAPITAL CONTRIBUTIONS 1,383,268 - 1,394,822 -
TRANSFERS OUT (21,420) - (121,800) (81,900)
CHANGE IN NET POSITION 1,578,087 38,651 2,411,066 361,254
NET POSITION, JANUARY 1 5,310,492 261,798 16,925,337 8,940,054
NET POSITION, DECEMBER 31 6,888,579$ 300,449$ 19,336,403$ 9,301,308$
Change in net position - enterprise funds 2,411,066$
Adjustment to reflect the consolidation of internal service fund activities related to
the enterprise funds.14,344
Change in net position - business-type activities 2,425,410$
Business-type Activities - Enterprise Funds
-51-
The notes to the financial statements are an integral part of this statement.
CITY OF NEW HOPE, MINNESOTA
STATEMENT OF CASH FLOWS - CONTINUED ON THE FOLLOWING PAGES
PROPRIETARY FUNDS
FOR THE YEAR ENDED DECEMBER 31, 2016
9300 9301 9302 9303
Sewer Utility Water Utility Golf Course Ice Arena
CASH FLOWS FROM OPERATING ACTIVITIES
Receipts from customers and users 2,689,218$ 3,720,656$ 299,856$ 734,377$
Receipts from interfund services provided - - - -
Other operating receipts 130,692 307,091 15,306 43,267
Payments to suppliers (1,688,098) (2,906,275) (160,970) (349,739)
Payments to employees (351,142) (284,129) (134,133) (310,754)
NET CASH PROVIDED
BY OPERATING ACTIVITIES 780,670 837,343 20,059 117,151
CASH FLOWS FROM NONCAPITAL
FINANCING ACTIVITIES
Receipts on interfund balances - - - 370,074
Payments on interfund balances (219,504) - - (122,889)
Transfers out (49,140) (51,240) - -
NET CASH PROVIDED (USED) BY
NONCAPITAL FINANCING ACTIVITIES (268,644) (51,240) - 247,185
CASH FLOWS FROM CAPITAL
AND RELATED FINANCING ACTIVITIES
Acquisition of capital assets (1,005,623) (1,565,114) - (77,565)
Payment on account used to finance capital asset acquisitions (5,277) - - -
Proceeds from sale of assets - - - -
Receipts of advance from other funds 1,250,000 - - -
Payment of advance from other funds - (104,282) - -
Capital contributions - 11,554 - -
Proceeds from bonds issued (net)235,901 1,091,208 - -
Principal paid on long-term debt - (147,000) - -
Interest paid on long-term debt (16,289) (75,164) - (59,747)
NET CASH PROVIDED (USED) BY
CAPITAL AND RELATED
FINANCING ACTIVITIES 458,712 (788,798) - (137,312)
CASH FLOWS FROM INVESTING ACTIVITIES
Investment earnings - 11,051 1,375 13,890
NET INCREASE (DECREASE)
IN CASH AND CASH EQUIVALENTS 970,738 8,356 21,434 240,914
CASH AND CASH EQUIVALENTS, JANUARY 1 - 1,364,888 86,599 627,939
CASH AND CASH EQUIVALENTS, DECEMBER 31 970,738$ 1,373,244$ 108,033$ 868,853$
RECONCILIATION TO THE PROPRIETARY FUNDS
STATEMENT OF NET POSITION
Cash and temporary investments 970,738$ 1,373,244$ 108,033$ -$
Cash held with fiscal agent - - - 868,853
TOTAL CASH AND CASH EQUIVALENTS 970,738$ 1,373,244$ 108,033$ 868,853$
Business-type Activities - Enterprise Funds
-52-
The notes to the financial statements are an integral part of this statement.
CITY OF NEW HOPE, MINNESOTA
STATEMENT OF CASH FLOWS - CONTINUED
PROPRIETARY FUNDS
FOR THE YEAR ENDED DECEMBER 31, 2016
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)452,393$ 315,798$ (39,084)$ (176,495)$
Adjustments to reconcile operating income (loss)
to net cash provided (used) by operating activities
Depreciation 141,032 266,768 38,487 207,086
Other income related to operations 131,944 308,051 15,566 44,281
(Increase) decrease in assets
Receivables
Accounts (13,637) (46,074) - 9,778
Special assessments 74,980 (68,215) - -
Due from other governments - (86) - 10,950
Inventories - (11,301) 1,786 -
Decrease in deferred outflows of resources
Deferred pension resources (63,266) (94,325) (19,097) (72,086)
Increase (decrease) in liabilities
Accounts and contracts payable 40,009 25,870 (2,261) 25,036
Accrued salaries payable 950 5,827 76 1,561
Due to other governments 393 (4,745) 688 (2,782)
Compensated absences payable - - - -
Other postemployment benefits payable 1,893 1,678 326 1,573
Pension liability 28,615 137,820 24,342 75,065
Increase (decrease) in deferred inflows of resources
Deferred pension resources (14,636) 277 (770) (6,816)
NET CASH PROVIDED (USED)
BY OPERATING ACTIVITIES 780,670$ 837,343$ 20,059$ 117,151$
SCHEDULE OF NONCASH CAPITAL AND
RELATED FINANCING ACTIVITIES
Amortization of bond discount -$ -$ -$ -$
Amortization of bond premium 1,076$ 4,163$ -$ -$
Capital assets purchased on account 13,869$ 39,311$ -$ -$
Loss on sale or disposal of capital assets -$ -$ -$ -$
Business-type Activities - Enterprise Funds
-53-
The notes to the financial statements are an integral part of this statement.
CITY OF NEW HOPE, MINNESOTA
STATEMENT OF CASH FLOWS - CONTINUED
PROPRIETARY FUNDS
FOR THE YEAR ENDED DECEMBER 31, 2016
Governmental
Activities -
9304 9305 Internal
Storm Water Street Lighting Totals Service Funds
CASH FLOWS FROM OPERATING ACTIVITIES
Receipts from customers and users 1,035,166$ 135,334$ 8,614,607$ -$
Receipts from interfund services provided - - - 3,175,635
Other operating receipts - - 496,356 77,651
Payments to suppliers (414,323) (101,874) (5,621,279) (1,291,387)
Payments to employees (189,790) - (1,269,948) (716,375)
NET CASH PROVIDED
BY OPERATING ACTIVITIES 431,053 33,460 2,219,736 1,245,524
CASH FLOWS FROM NONCAPITAL
FINANCING ACTIVITIES
Receipts on interfund balances - - 370,074 -
Payments on interfund balances - - (342,393) -
Transfers out (21,420) - (121,800) (81,900)
NET CASH PROVIDED (USED) BY
NONCAPITAL FINANCING ACTIVITIES (21,420) - (94,119) (81,900)
CASH FLOWS FROM CAPITAL
AND RELATED FINANCING ACTIVITIES
Acquisition of capital assets (2,847,284) - (5,495,586) (749,101)
Payment on account used to finance capital asset acquisitions (3,177) - (8,454) -
Proceeds from sale of assets - - - 74,135
Receipts of advance from other funds - - 1,250,000 -
Payment of advance from other funds - - (104,282) -
Capital contributions 1,067,372 - 1,078,926 -
Proceeds from bonds issued (net)739,316 - 2,066,425 -
Principal paid on long-term debt (55,000) - (202,000) -
Interest paid on long-term debt (21,062) - (172,262) -
NET CASH PROVIDED (USED) BY
CAPITAL AND RELATED
FINANCING ACTIVITIES (1,119,835) - (1,587,233) (674,966)
CASH FLOWS FROM INVESTING ACTIVITIES
Investment earnings 14,354 4,038 44,708 73,708
NET INCREASE (DECREASE)
IN CASH AND CASH EQUIVALENTS (695,848) 37,498 583,092 562,366
CASH AND CASH EQUIVALENTS, JANUARY 1 1,292,276 262,027 3,633,729 6,263,387
CASH AND CASH EQUIVALENTS, DECEMBER 31 596,428$ 299,525$ 4,216,821$ 6,825,753$
RECONCILIATION TO THE PROPRIETARY FUNDS
STATEMENT OF NET POSITION
Cash and temporary investments 596,428$ 299,525$ 3,347,968$ 6,825,753$
Cash held with fiscal agent - - 868,853 -
TOTAL CASH AND CASH EQUIVALENTS 596,428$ 299,525$ 4,216,821$ 6,825,753$
Business-type Activities - Enterprise Funds
-54-
The notes to the financial statements are an integral part of this statement.
CITY OF NEW HOPE, MINNESOTA
STATEMENT OF CASH FLOWS - CONTINUED
PROPRIETARY FUNDS
FOR THE YEAR ENDED DECEMBER 31, 2016
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)239,825$ 34,613$ 827,050$ 302,110$
Adjustments to reconcile operating income (loss)
to net cash provided (used) by operating activities
Depreciation 138,345 - 791,718 878,365
Other income related to operations 717 - 500,559 -
(Increase) decrease in assets
Receivables
Accounts (4,412) (2,330) (56,675) (70,547)
Special assessments 2,149 139 9,053 -
Due from other governments - - 10,864 1,564
Inventories - - (9,515) 10,932
Decrease in deferred outflows of resources
Deferred pension resources (57,142) - (305,916) (74,680)
Increase (decrease) in liabilities
Accounts and contracts payable 21,901 1,038 111,593 49,109
Accrued salaries payable 1,316 - 9,730 26,650
Due to other governments (24,451) - (30,897) 6,147
Compensated absences payable - - - 29,388
Other postemployment benefits payable 1,766 - 7,236 48,277
Pension liability 105,711 - 371,553 51,394
Increase (decrease) in deferred inflows of resources
Deferred pension resources 5,328 - (16,617) (13,185)
NET CASH PROVIDED (USED)
BY OPERATING ACTIVITIES 431,053$ 33,460$ 2,219,736$ 1,245,524$
SCHEDULE OF NONCASH CAPITAL AND
RELATED FINANCING ACTIVITIES
Amortization of bond discount 740$ -$ 740$ -$
Amortization of bond premium 1,835$ -$ 7,074$ -$
Capital assets purchased on account 17,579$ -$ 70,759$ -$
Loss on sale or disposal of capital assets -$ -$ -$ 6,799$
Business-type Activities - Enterprise Funds
-55-
The notes to the financial statements are an integral part of this statement.
CITY OF NEW HOPE, MINNESOTA
STATEMENT OF FIDUCIARY NET POSITION
AGENCY FUND
DECEMBER 31, 2016
Agency
ASSETS
74,895$
LIABILITIES
Deposits payable 74,895$
Cash and temporary investments
-56-
CITY OF NEW HOPE, MINNESOTA
NOTES TO THE FINANCIAL STATEMENTS
DECEMBER 31, 2016
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.
-57-
CITY OF NEW HOPE, MINNESOTA
NOTES TO THE FINANCIAL STATEMENTS
DECEMBER 31, 2016
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.
-58-
CITY OF NEW HOPE, MINNESOTA
NOTES TO THE FINANCIAL STATEMENTS
DECEMBER 31, 2016
Note 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - CONTINUED
The 2016 Street Improvement Project fund is used to account for 2016 street improvement capital projects.
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.
-59-
CITY OF NEW HOPE, MINNESOTA
NOTES TO THE FINANCIAL STATEMENTS
DECEMBER 31, 2016
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 of 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.
-60-
CITY OF NEW HOPE, MINNESOTA
NOTES TO THE FINANCIAL STATEMENTS
DECEMBER 31, 2016
Note 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - CONTINUED
The City categorizes its fair value measurements within the fair value hierarchy established by generally accepted
accounting principles. The hierarchy is based on the valuation inputs used to measure the fair value of the asset. Level 1
inputs are quoted prices in active markets for identical assets; Level 2 inputs are significant other observable inputs;
Level 3 inputs are significant unobservable inputs. See Note 3A on page 68 for the City’s recurring fair value
measurements.
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.
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 2016. 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, 2016, the total
delinquent special assessment receivable balance was $46,255.
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.
-61-
CITY OF NEW HOPE, MINNESOTA
NOTES TO THE FINANCIAL STATEMENTS
DECEMBER 31, 2016
Note 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - CONTINUED
Interfund receivables and payables
Activity between funds that are representative of lending/borrowing arrangements outstanding at the end of the fiscal
year are referred to as either “due to/from other funds” (i.e., the current portion of interfund loans) or “advances to/from
other funds” (i.e., the non-current portion of interfund loans). All other outstanding balances between funds are reported
as “due to/from other funds.” Any residual balances outstanding between the governmental activities and business-type
activities are reported in the government-wide financial statements as “internal balances.”
Inventory and prepaid items
Inventory is valued at cost using the first-in/first-out (FIFO) method. Inventory consists mainly of expendable supplies
held for consumption.
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 fair value of the property. The fair value of the property was
determined based on quoted market prices.
Investment in joint ventures
Included in the assets of the government-wide statements and proprietary funds are amounts representing the City’s
investment in two joint ventures described later in these notes.
Capital assets
Capital assets, which include property, plant, equipment, and infrastructure assets (e.g., roads, bridges, sidewalks, an
similar items), are reported in the applicable governmental or business-type activities columns in the government-wide
financial statements. Capital assets are defined by the City as assets with an initial, individual cost of more than $5,000
(amount not rounded) and an estimated useful life of two years or more. Such assets are recorded at historical cost or
estimated historical cost if purchased or constructed. Donated capital assets would be recorded at estimated acquisition
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
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CITY OF NEW HOPE, MINNESOTA
NOTES TO THE FINANCIAL STATEMENTS
DECEMBER 31, 2016
Note 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - CONTINUED
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 net 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 City has three types of items, unavailable revenue and resources received in
advance, and deferred pension resources.
Unavailable revenue arises only under a modified accrual basis of accounting that qualifies as needing to be
reported 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: property taxes and
special assessments. These amounts are deferred and recognized as an inflow of resources in the period that the
amounts become available.
Resources received in advance is reported in both the governmental fund financial statements and within the
government-wide financial statements. This item is reported for amounts that have been received before time
requirements are met, but after all other eligibility requirements have been met.
Deferred pension resources is reported only in the statements of net position and results from actuarial
calculations.
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.
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CITY OF NEW HOPE, MINNESOTA
NOTES TO THE FINANCIAL STATEMENTS
DECEMBER 31, 2016
Note 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - CONTINUED
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.
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.
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CITY OF NEW HOPE, MINNESOTA
NOTES TO THE FINANCIAL STATEMENTS
DECEMBER 31, 2016
Note 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - CONTINUED
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.
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.
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CITY OF NEW HOPE, MINNESOTA
NOTES TO THE FINANCIAL STATEMENTS
DECEMBER 31, 2016
Note 2: STEWARDSHIP, COMPLIANCE AND ACCOUNTABILITY - CONTINUED
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.
B. Excess of expenditures over appropriations
For the year ended December 31, 2016, expenditures exceeded appropriations in the Economic Development Authority
fund by $103,952. This excess was partially funded by revenues received in excess of budget.
C. Deficit fund equity
The following funds had fund balance deficits at December 31, 2016:
Amount
Major governmental
Street Infastructure 2,274,312$
2016 Street Improvement Project 144,448
HRA Bonds 330,252
Nonmajor governmental
Xylon Avenue Improvements 266,303
Fund
The City plans to fund these deficits with future tax increment receipts, transfers, tax levy receipts and special
assessment collections.
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;
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CITY OF NEW HOPE, MINNESOTA
NOTES TO THE FINANCIAL STATEMENTS
DECEMBER 31, 2016
Note 3: DETAILED NOTES ON ALL FUNDS - CONTINUED
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 $1,024,955 and the bank balance was $1,329,355. At
December 31, 2016, 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.
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.
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.
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CITY OF NEW HOPE, MINNESOTA
NOTES TO THE FINANCIAL STATEMENTS
DECEMBER 31, 2016
Note 3: DETAILED NOTES ON ALL FUNDS - CONTINUED
As of December 31, 2016, 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
Quality/ Time
Ratings (1) Distribution (2) Amount Level 1 Level 2 Level 3
Pooled investments at amortized costs
Broker Money Market Funds AAA Less than 6 months 78,853$
Pooled investments at net asset value
Broker Money Market Funds AAA Less than 6 months 8,019,368
Non-pooled investments at fair value
Negotiable Certificates of Deposit N/A Less than 6 months 2,941,561 490,382$ 2,451,179$ -$
Negotiable Certificates of Deposit N/A 6 months to 1 year 2,276,475 1,062,175 1,214,300 -
Negotiable Certificates of Deposit N/A 1 to 3 years 7,243,972 582,807 6,661,165 -
Negotiable Certificates of Deposit N/A More than 3 years 584,355 - 584,355 -
U.S. Government Treasury Securities N/A More than 3 years 790,000 790,000 - -
U.S. Government Agency Securities AA+ 6 months to 1 year 625,373 - 625,373 -
U.S. Government Agency Securities AA+ More than 3 years 2,256,185 2,905 2,253,280 -
State and Local Government Securities AA- 6 months to 1 year 751,118 - 751,118 -
State and Local Government Securities AA- 1 to 3 years 102,862 - 102,862 -
State and Local Government Securities A 1 to 3 years 508,185 508,185 - -
State and Local Government Securities AAA 6 months to 1 year 500,745 500,745 - -
State and Local Government Securities AA+ More than 3 years 515,420 - 515,420 -
State and Local Government Securities AA- More than 3 years 506,290 - 506,290 -
Total investments 27,700,762$ 3,937,199$ 15,665,342$ -$
Types of Investments
Fair Value Measurement
(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.
The following table discloses the nature and risk of investments for which fair value has been estimated using the net
asset value per share (NAV) of the investments as a practical expedient as of December 31, 2016:
Unfunded Redemption Redemption
Fair Value Commitments Frequency Notice Period
Broker Money Market Funds
UBS Select Prime Institutional Fund (1)546,127$ -$ Daily None Required
Invesco Government and Agency Fund (2) 7,473,241 - Daily None Required
8,019,368$ -$
Description
(1) This fund includes investments primarily in short-term, high-credit-quality money market instruments. hedge funds
that invest domestically and globally in both long and short common stocks across all market capitalizations. The fund
aims to preserve capital, maintain liquidity and produce a competitive yield.
(2) This fund seeks maximum current income consistent with liquidity and the preservation of capital. The Fund invests
in a diversified portfolio of high quality money market instruments of governmental and private issuers.
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CITY OF NEW HOPE, MINNESOTA
NOTES TO THE FINANCIAL STATEMENTS
DECEMBER 31, 2016
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 1,024,955$
Investments 27,700,762
Petty cash 2,950
Total 28,728,667$
Statement of Net Position
Cash and temporary investments 27,784,919$
Cash held with fiscal agent 868,853
Statement of Fiduciary Net Assets
Cash and temporary investments 74,895
Total 28,728,667$
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, 2016 totaled $352,012.
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CITY OF NEW HOPE, MINNESOTA
NOTES TO THE FINANCIAL STATEMENTS
DECEMBER 31, 2016
Note 3: DETAILED NOTES ON ALL FUNDS – CONTINUED
C. Capital assets
Capital asset activity for the year ended December 31, 2016 was as follows:
Beginning Ending
Balance Increases Decreases Balance
Governmental activities
Capital assets not being depreciated
Land 994,268$ -$ -$ 994,268$
Construction in progress 5,671,501 7,465,002 (2,593,252) 10,543,251
Total capital assets not
being depreciated 6,665,769 7,465,002 (2,593,252) 11,537,519
Capital assets, being depreciated
Buildings and structures 9,350,955 - - 9,350,955
Vehicles and equipment 9,884,938 749,101 (572,765) 10,061,274
Improvements other than buildings 27,185,624 2,593,251 - 29,778,875
Total capital assets
being depreciated 46,421,517 3,342,352 (572,765) 49,191,104
Less accumulated depreciation for
Buildings and structures (5,900,628) (269,030) - (6,169,658)
Vehicles and equipment (7,125,563) (816,665) 565,966 (7,376,262)
Improvements other than buildings (8,609,189) (1,357,743) - (9,966,932)
Total accumulated depreciation (21,635,380) (2,443,438) 565,966 (23,512,852)
Total capital assets
being depreciated, net 24,786,137 898,914 (6,799) 25,678,252
Governmental activities
capital assets, net 31,451,906$ 8,363,916$ (2,600,051)$ 37,215,771$
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CITY OF NEW HOPE, MINNESOTA
NOTES TO THE FINANCIAL STATEMENTS
DECEMBER 31, 2016
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 2,848,989 5,566,343 (1,914,886) 6,500,446
Total capital assets
not being depreciated 3,334,031 5,566,343 (1,914,886) 6,985,488
Capital assets being depreciated
Buildings and structures 10,796,258 23,774 - 10,820,032
Improvements other than buildings 16,772,609 1,725,130 - 18,497,739
Vehicles and equipment 2,383,589 165,984 - 2,549,573
Total capital assets
being depreciated 29,952,456 1,914,888 - 31,867,344
Less accumulated depreciation for
Buildings and structures (3,913,279) (213,196) - (4,126,475)
Improvements other than buildings (4,386,798) (444,151) - (4,830,949)
Vehicles and equipment (1,719,430) (134,371) - (1,853,801)
Total accumulated
depreciation (10,019,507) (791,718) - (10,811,225)
Total capital assets
being depreciated, net 19,932,949 1,123,170 - 21,056,119
Business-type activities
capital assets, net 23,266,980$ 6,689,513$ (1,914,886)$ 28,041,607$
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CITY OF NEW HOPE, MINNESOTA
NOTES TO THE FINANCIAL STATEMENTS
DECEMBER 31, 2016
Note 3: DETAILED NOTES ON ALL FUNDS - CONTINUED
Depreciation expense was charged to functions/programs of the City as follows:
Governmental activities
General government 103,314$
Public safety 66,666
Public works 1,036,505
Culture and recreation 358,588
Internal service 878,365
Total depreciation expense - governmental activities 2,443,438$
Business-type activities
Sewer utility 141,032$
Water utility 266,768
Golf course 38,487
Ice arena 207,086
Storm water 138,345
Total depreciation expense - business-type activities 791,718$
Construction commitments
The City has active construction projects as of December 31, 2016. 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$
2016 Infrastructure improvements 2,030,160 830,321
2016 Northwood south area infrastructure project 3,743,057 308,138
2016 Sanitary Sewer Lining 161,084 66,529
Total 5,995,535$ 1,227,919$
Project
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CITY OF NEW HOPE, MINNESOTA
NOTES TO THE FINANCIAL STATEMENTS
DECEMBER 31, 2016
Note 3: DETAILED NOTES ON ALL FUNDS - CONTINUED
D. Interfund receivables, payables, and transfers
The composition of internal balances as of December 31, 2016 is as follows:
Purpose Amount
Due from/to other funds
Governmental Governmental
Economic Development Authority HRA Construction Finance capital purchase 111,826$
Economic Development Authority HRA Construction Cash flow 34,608
Economic Development Authority HRA Bonds Cash flow 392,524
Temporary Financing Street Infrastructure Finance capital purchase 75,000
Governmental Business-type
Temporary Financing Sewer Utility Construction financing 125,000
Temporary Financing Water Utility Construction financing 104,282
General fund Ice Arena Cash flow 370,074
Total due from/to other funds 1,213,314
Advances to/from other funds
Governmental Governmental
Economic Development Authority HRA Construction Finance capital purchase 1,568,443$
Temporary Financing Street Infrastructure Finance capital purchase 675,000
Governmental Business-type
Temporary Financing Sewer Utility Construction financing 1,125,000
Temporary Financing Water Utility Construction financing 788,705
Total advances to/from other funds 4,157,148
Interfund activity eliminated from government-wide statements (2,857,401)
Internal service fund activities related to the enterprise funds 1,020,792
Total internal balances - government-wide statements 3,533,853$
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, 2016, the balance outstanding was $1,680,269 . 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, 2016, the balance outstanding was $892,987 . In 2016, the
Temporary Financing fund loaned the Sewer Utility fund $1,250,000 to fund the 2016 capital improvement plan. The
loan will be paid back over a 10 year period with a 2.00 percent interest rate. As of December 31, 2016, the balance
outstanding was 1,250,000 . In 2016, the Temporary Financing fund loaned the Street Infrastructure fund $750,000 to
fund future capital purchases. The loan will be paid back over a 10 year period with a 2.00 percent interest rate. As of
December 31, 2016, the balance outstanding was $750,000. In 2016, the General fund loaned the Ice Arena fund
$370,074 for cash flow purposes, the loan will be paid back in 2017. In 2016, the Economic Development Authority
fund loaned the HRA Construction fund $34,608 for cash flow purposes, the loan will be paid back in 2017. In 2016, the
Economic Development Authority fund loaned the HRA Bonds fund $392,524 for cash flow purposes, the loan will be
paid back in 2017.
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CITY OF NEW HOPE, MINNESOTA
NOTES TO THE FINANCIAL STATEMENTS
DECEMBER 31, 2016
Note 3: DETAILED NOTES ON ALL FUNDS - CONTINUED
Interfund transfers at December 31, 2016 are as follows:
Economic Nonmajor
General Development Governmental
Fund Authority Funds Total
Transfer out
General -$ -$ 250,000$ 250,000$
Economic Development Authority 31,500 - - 31,500
HRA Construction - 9,008 1,136,062 1,145,070
Sewer Utility enterprise 49,140 - - 49,140
Water Utility enterprise 51,240 - - 51,240
Storm Water enterprise 21,420 - - 21,420
Internal Service 81,900 - - 81,900
Total transfers 235,200$ 9,008$ 1,386,062$ 1,630,270$
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 $31,500, $49,140, $51,240,
$21,420, and $81,900, respectively, to the General fund to cover administrative charges paid for by the General
fund.
The HRA Construction fund transferred $1,136,062 to the Xylon Avenue Improvement fund to distribute non
tax increment project costs.
The HRA Construction fund transferred $9,008 to the Economic Development Authority fund to reimburse the
fund for tax increment project costs.
E. Long-term debt
General obligation (G.O.) bonds
The City issues G.O. bonds to provide funds for the acquisition and construction of major capital facilities. G.O. bonds
have been issued for both governmental and business-type activities. These bonds are reported in the proprietary funds if
they are expected to be repaid from proprietary fund revenues.
The following G.O. bonds will be repaid from future tax levies.
Authorized Issue Maturity Balance at
and Issued Date Date Year End
2010B G.O. Certificates of
Indebtedness 1,245,000$ 2.00 - 2.60 % 11/23/10 02/01/20 580,000$
G.O. Street Reconstruction
Bonds, Series 2015B 3,825,000 2.25 - 3.00 12/30/15 02/01/31 3,825,000
G.O. Street Reconstruction
Bonds, Series 2016A 4,855,000 2.25 - 3.00 12/29/16 02/01/33 4,855,000
Total General Obligation Bonds 9,260,000$
Interest
RateDescription
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CITY OF NEW HOPE, MINNESOTA
NOTES TO THE FINANCIAL STATEMENTS
DECEMBER 31, 2016
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
2017 248,497$ 118,716$ 367,213$ 91,504$ 83,890$ 175,394$
2018 258,922 147,252 406,174 96,077 106,125 202,202
2019 415,584 138,185 553,769 209,416 101,542 310,958
2020 429,113 126,250 555,363 215,887 95,163 311,050
2021 284,734 115,842 400,576 220,266 88,620 308,886
2022-2026 1,581,055 443,984 2,025,039 1,223,945 338,572 1,562,517
2027-2031 1,807,456 205,142 2,012,598 1,397,544 154,808 1,552,352
2032-2033 453,714 13,699 467,413 326,286 9,851 336,137
Total 5,479,075$ 1,309,070$ 6,788,145$ 3,780,925$ 978,571$ 4,759,496$
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 $275,000 and $144,194, respectively.
Authorized Issue Maturity Balance at
and Issued Date Date Year End
G.O. Tax Increment Refunding
Bonds, Series, 2012A 2,695,000$ 2.00 - 2.45 % 01/11/12 02/01/25 2,255,000$
G.O. Taxable Tax Increment
Refunding Bonds, Series, 2012B 1,330,000 1.35 - 4.65 01/11/12 02/01/31 1,225,000
G.O. Tax Increment
Bonds, Series, 2015A 5,960,000 2.00 - 3.00 06/17/15 02/01/32 5,960,000
Total G.O. tax increment bonds 9,440,000$
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
2017 275,000$ 195,492$ 470,492$ -$ 37,315$ 37,315$
2018 541,170 187,405 728,575 88,830 36,431 125,261
2019 554,000 176,353 730,353 91,000 34,637 125,637
2020 572,700 164,798 737,498 92,300 32,804 125,104
2021 585,100 152,745 737,845 94,900 30,932 125,832
2022-2026 2,915,800 558,374 561,000 499,200 125,010 624,210
2027-2031 2,098,400 226,470 122,200 561,600 59,973 621,573
2032 332,830 5,218 122,200 137,170 1,833 139,003
Total 7,875,000$ 1,666,855$ 4,210,163$ 1,565,000$ 358,935$ 1,923,935$
Governmental Activities Business-type Activities
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CITY OF NEW HOPE, MINNESOTA
NOTES TO THE FINANCIAL STATEMENTS
DECEMBER 31, 2016
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 $59,747 and $713,649, respectively.
Authorized Issue Maturity Balance at
and Issued Date Date Year End
2011A Taxable Lease
Revenue Bonds 3,505,000$ 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
2017 -$ 57,482$ 57,482$
2018 - 57,482 57,482
2019 - 57,482 57,482
2020 - 57,482 57,482
2021 - 57,482 57,482
2022-2026 - 287,410 287,410
2027-2028 3,505,000 114,964 3,619,964
Total 3,505,000$ 689,784$ 4,194,784$
Business-type Activities
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CITY OF NEW HOPE, MINNESOTA
NOTES TO THE FINANCIAL STATEMENTS
DECEMBER 31, 2016
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 $16,289 and $2,627,875,
respectively. Principal and interest paid for the current year and total customer revenues for the Water Utility fund were
$222,164 and $3,835,031, respectively. Principal and interest paid for the current year and total customer revenues for
the Storm Water fund were $76,062 and $1,037,429, respectively.
Authorized Issue Maturity Balance at
and Issued Date Date Year End
2010A G.O. Utility Revenue
Bonds 1,200,000$ 2.00 - 3.25 % 05/06/10 02/01/21 405,000$
2010B G.O. Water Revenue
Refunding Bonds 605,000 2.00 - 3.00 11/23/10 02/01/22 350,000
2011 G.O. Public Facilities
Authority Note 411,738 1.70 02/23/11 08/20/29 295,000
2013 G.O. Public Facilities
Authority Note 1,035,000 1.00 07/24/13 08/20/32 900,000
Total G.O. revenue bonds and notes 1,950,000$
Rate
Interest
Description
The annual debt service to maturity for G.O. revenue bonds are as follows:
Year Ending
December 31, Principal Interest Total
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 221,000 14,705 235,705
2022-2026 459,000 39,390 498,390
2027-2031 368,000 14,455 382,455
2032 61,000 610 61,610
Total 1,950,000$ 177,444$ 2,127,444$
Business-type Activities
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CITY OF NEW HOPE, MINNESOTA
NOTES TO THE FINANCIAL STATEMENTS
DECEMBER 31, 2016
Note 3: DETAILED NOTES ON ALL FUNDS - CONTINUED
Changes in long-term liabilities
Long-term liability activity for the year ended December 31, 2016, was as follows:
Beginning Ending Due Within
Balance Increases Decreases Balance One Year
Governmental activities
Bonds payable
G.O. bonds and certificates 2,795,000$ 2,824,075$ (140,000)$ 5,479,075$ 248,497$
G.O. tax increment bonds 8,150,000 - (275,000) 7,875,000 275,000
Add: premiums on bonds 203,458 107,553 (13,752) 297,259 -
Total bonds payable, net 11,148,458 2,931,628 (428,752) 13,651,334 523,497
Pension liability
GERF 2,489,991 1,567,638 (200,147) 3,857,482 -
PEPFF 3,204,180 9,079,842 (485,291) 11,798,731 -
Compensated absences payable 537,257 931,723 (902,335) 566,645 56,665
Other postemployment
benefits payable 269,019 85,740 (37,463) 317,296 -
Governmental activity
long-term liabilities 17,648,905$ 14,596,571$ (2,053,988)$ 30,191,488$ 580,162$
Business-type activities
Bonds payable
G.O. bonds 1,750,000$ 2,030,925$ -$ 3,780,925$ 91,504$
G.O. tax increment bonds 1,565,000 - - 1,565,000 -
Lease revenue bonds 3,505,000 - - 3,505,000 -
G.O. revenue bonds 2,152,000 - (202,000) 1,950,000 202,000
Add: premiums on bonds 107,607 77,400 (7,074) 177,933 -
Less: bond discount (3,763) - 740 (3,023) -
Total bonds payable, net 9,075,844 2,108,325 (208,334) 10,975,835 293,504
Pension liability
GERF 707,623 454,720 (83,167) 1,079,176 -
Other postemployment
benefits payable 41,646 13,273 (6,037) 48,882 -
Business-type activity
long-term liabilities 9,825,113$ 2,576,318$ (297,538)$ 12,103,893$ 293,504$
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, 2016
Note 3: DETAILED NOTES ON ALL FUNDS - CONTINUED
F. Components of fund balance
At December 31, 2016, 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 Governmental
General Authority Construction Funds Total
Nonspendable
Prepaid items 18,242$ -$ -$ -$ 18,242$
Restricted for
Economic development -$ -$ 4,581,670$ -$ 4,581,670$
Debt service - - - 185,186 185,186
Capital improvements - - - 2,873,440 2,873,440
Public safety
Police expenditures - - - 127,392 127,392
Ice arena - - - 5,094 5,094
Total restricted -$ -$ 4,581,670$ 3,191,112$ 7,772,782$
Committed to
Solid waste operations -$ -$ -$ 198,352$ 198,352$
Economic development - 5,198,723 - - 5,198,723
Total committed -$ 5,198,723$ -$ 198,352$ 5,397,075$
Assigned to
General improvements -$ -$ -$ 3,040,913$ 3,040,913$
Capital equipment - - - 456,803 456,803
City hall improvements - - - 363,290 363,290
Park improvements - - - 1,097,088 1,097,088
Total assigned -$ -$ -$ 4,958,094$ 4,958,094$
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, 2016
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 members who were first hired prior to July 1, 1989, a full annuity is available when age plus years of
service equal at least 90.
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CITY OF NEW HOPE, MINNESOTA
NOTES TO THE FINANCIAL STATEMENTS
DECEMBER 31, 2016
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 2016. 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 2016. The City’s
contributions to the GERF for the years ending December 31, 2016, 2015 and 2014 were $280,102, $284,367 and
$255,968, 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 2016. The
City was required to contribute 16.20 percent of pay for PEPFF members in calendar year 2016. The City’s
contributions to the PEPFF for the years ending December 31, 2016, 2015 and 2014 were $444,511, $448,029, and
$384,964, 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, 2016, the City reported a liability of $4,936,658 for its proportionate share of the GERF’s net
pension liability. The City’s net pension liability reflected a reduction due to the State of Minnesota’s contribution
of $6 million to the fund in 2016. The State of Minnesota is considered a non-employer contributing entity and the
State’s contribution meets the definition of a special funding situation. The State of Minnesota’s proportionate share
of the net pension liability associated with the City totaled $64,481. The net pension liability was measured as of
June 30, 2016, 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, 2015
through June 30, 2016 relative to the total employer contributions received from all of PERA’s participating
employers. At June 30, 2016, the City’s proportionate share was 0.0608 percent which was an decrease of 0.0009
percent from its proportion measured as of June 30, 2015.
For the year ended December 31, 2016, the City recognized pension expense of $549,949 for its proportionate share
of GERF’s pension expense. In addition, the City recognized an additional $19,226 as pension expense (and grant
revenue) for its proportionate share of the State of Minnesota’s contribution of $6 million to the GERF.
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CITY OF NEW HOPE, MINNESOTA
NOTES TO THE FINANCIAL STATEMENTS
DECEMBER 31, 2016
Note 4: OTHER INFORMATION - CONTINUED
At December 31, 2016, the City reported its proportionate share of GERF’s deferred outflows of resources and
deferred inflows of resources, and its contributions subsequent to the measurement date, from the following sources:
Deferred Deferred
Outflows Inflows
of Resources of Resources
Differences between expected and
actual experience 15,548$ 396,886$
Changes in actuarial assumptions 1,063,224 -
Net difference between projected and
actual earnings on plan investments 547,197 -
Changes in proportion - 150,979
Contributions to GERF subsequent
to the measurement date 153,498 -
Total 1,779,467$ 547,865$
Deferred outflows of resources totaling $153,498 related to pensions resulting from the City’s contributions to
GERF subsequent to the measurement date will be recognized as a reduction of the net pension liability in the year
ended December 31, 2017. Other amounts reported as deferred outflows and inflows of resources related to GERF
pensions will be recognized in pension expense as follows:
2017 274,661$
2018 160,266
2019 464,855
2020 178,322
PEPFF pension costs
At December 31, 2016, the City reported a liability of $11,798,731 for its proportionate share of the PEPFF’s net
pension liability. The net pension liability was measured as of June 30, 2016, 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, 2015 through June 30, 2016 relative to the total employer contributions
received from all of PERA’s participating employers. At June 30, 2016, the City’s proportionate share was 0.294
percent which was an increase of 0.012 percent from its proportion measured as of June 30, 2015.
For the year ended December 31, 2016, the City recognized pension expense of $1,847,578 for its proportionate
share of PEPFF’s pension expense. The City also recognized $26,460 for the year ended December 31, 2016, 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 $9 million to the
PEPFF each year, starting in fiscal year 2014.
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CITY OF NEW HOPE, MINNESOTA
NOTES TO THE FINANCIAL STATEMENTS
DECEMBER 31, 2016
Note 4: OTHER INFORMATION - CONTINUED
At December 31, 2016, the City reported its proportionate share of PEPFF’s deferred outflows of resources and
deferred inflows of resources, and its contributions subsequent to the measurement date, from the following sources:
Deferred Deferred
Outflows Inflows
of Resources of Resources
Differences between expected and
actual experience 2,582$ 1,374,219$
Changes in actuarial assumptions 6,970,945 -
Net difference between projected and
actual earnings on plan investments 1,032,555 -
Changes in proportion 219,939 -
Contributions to PEPFF subsequent
to the measurement date 239,834 -
Total 8,465,855$ 1,374,219$
Deferred outflows of resources totaling $239,834 related to pensions resulting from the City’s contributions to
PEPFF subsequent to the measurement date will be recognized as a reduction of the net pension liability in the year
ended December 31, 2017. Other amounts reported as deferred outflows and inflows of resources related to GERF
pensions will be recognized in pension expense as follows:
2017 1,313,177$
2018 1,313,177
2019 1,688,892
2020 1,395,806
2021 1,140,750
5. Actuarial assumptions
The total pension liability in the June 30, 2016 actuarial valuation was determined using the following actuarial
assumptions:
Inflation 2.50% per year
Active member payroll growth 3.25% per year
Investment rate of return 7.50%
Salary increases were based on a service-related table. Mortality rates for active members, retirees, survivors and
disabilitants were based on RP-2014 tables for the GERF and RP-2000 tables for the PEPFF for males or females, as
appropriate, with slight adjustments. Cost of living benefit increases for retirees are assumed to be: 1 percent per
year for all future years for the GERF and PEPFF.
Actuarial assumptions used in the June 30, 2016 valuation were based on the results of actuarial experience studies.
The most recent four-year experience study in the GERF was completed in 2015. The experience study for PEPFF
was for the period July 1, 2004, through June 30, 2009
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CITY OF NEW HOPE, MINNESOTA
NOTES TO THE FINANCIAL STATEMENTS
DECEMBER 31, 2016
Note 4: OTHER INFORMATION - CONTINUED
The following changes in actuarial assumptions occurred in 2016:
GERF
The assumed post-retirement benefit increase rate was changed from 1.0 percent per year through 2035 and 2.5
percent per year thereafter to 1.0 percent per year for all future years.
The assumed investment return was changed from 7.9 percent to 7.5 percent. The single discount rate was
changed from 7.9 percent to 7.5 percent.
Other assumptions were changed pursuant to the experience study dated June 30, 2015. The assumed future
salary increases, payroll growth and inflation were decreased by 0.25 percent to 3.25 percent for payroll growth
and 2.50 percent for inflation.
PEPFF
The assumed post-retirement benefit increase rate was changed from 1.0 percent per year through 2037 and 2.5
percent per year thereafter to 1.0 percent per year for all future years.
The assumed investment return was changed from 7.9 percent to 7.5 percent. The single discount rate was
changed from 7.9 percent to 5.6 percent.
The assumed future salary increases, payroll growth and inflation were decreased by 0.25 percent to 3.25
percent for payroll growth and 2.50 percent for inflation.
The State Board of Investment, which manages the investments of PERA, prepares an analysis of the reasonableness
on a regular basis 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 geometric 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, 2016
Note 4: OTHER INFORMATION - CONTINUED
6. Discount rate
The discount rate used to measure the total pension liability was 7.50 percent, a reduction from the 7.90 percent used
in 2015. The projection of cash flows used to determine the discount rate assumed that contributions from plan
members and employers will be made at rates set in Minnesota statutes. Based on these assumptions, the fiduciary
net position of the GERF was projected to be available to make all projected future benefit payments of current plan
members. Therefore, the long-term expected rate of return on pension plan investments was applied to all periods of
projected benefit payments to determine the total pension liability.
In the PEPFF, the fiduciary net position was projected to be available to make all projected future benefit payments
of current plan members through June 30, 2056. Beginning in fiscal year ended June 30, 2057 for the PEPFF, when
projected benefit payments exceed the funds’ projected fiduciary net position, benefit payments were discounted at
the municipal bond rate of 2.85 percent based on an index of 20-year general obligation bonds with an average AA
credit rating at the measurement date. An equivalent single discount rate of 5.60 percent for the PEPFF was
determined that produced approximately the same present value of projected benefits when applied to all years of
projected benefits as the present value of projected benefits using 7.50 percent applied to all years of projected
benefits through the point of asset depletion and 2.85 percent after.
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 (6.50%) Current (7.50%) Increase (8.50%)
GERF 7,011,518$ 4,936,658$ 3,227,539$
1 Percent 1 Percent
Decrease (4.60%) Current (5.60%) Increase (6.60%)
PEPFF 16,516,658$ 11,798,731$ 7,943,827$
City Proportionate Share of NPL
8. Pension plan fiduciary net position
Detailed information about each pension plan’s fiduciary net position is available in a separately-issued PERA
financial report that includes financial statements and required supplementary information. That report may be
obtained on the Internet at www.mnpera.org.
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.
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CITY OF NEW HOPE, MINNESOTA
NOTES TO THE FINANCIAL STATEMENTS
DECEMBER 31, 2016
Note 4: OTHER INFORMATION - CONTINUED
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.
The City’s contributions to the PEDCP for the years ended December 31, 2016, 2015 and 2014 were $2,435, $2,478, and
$2,342, respectively. The City’s contributions were equal to the contractually required contributions for each year as set
by Minnesota statute.
Employee Employer Employee Employer Required Rate
2,435$ 2,435$ 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 2016, the City contributed $43,500 to the plan.
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CITY OF NEW HOPE, MINNESOTA
NOTES TO THE FINANCIAL STATEMENTS
DECEMBER 31, 2016
Note 4: OTHER INFORMATION - CONTINUED
3. Annual other postemployment benefit cost and net other postemployment benefit obligation
The City’s annual other postemployment benefit (OPEB) cost (expense) is calculated based on the annual required
contribution of the employer (ARC). The City has elected to calculate the ARC and related information using the
alternative measurement method permitted by GASB Statement No. 45 for employers in plans with fewer than one
hundred total plan members. The ARC represents a level of funding that, if paid on an ongoing basis, is projected to
cover normal cost each year and to amortize any unfunded actuarial liabilities (or funding excess) over a period not
to exceed thirty years. The following table shows the components of the City’s annual OPEB cost for the year, the
amount actually contributed to the plan, and changes in the City’s net OPEB obligation:
Annual required contribution 100,185$
Interest on net OPEB obligation 10,874
Adjustment to annual required contribution (12,046)
Annual OPEB cost (expense)99,013
Contributions made (43,500)
Increase in net OPEB obligation 55,513
Net OPEB obligation - January 1, 2016 310,665
Net OPEB obligation - December 31, 2016 366,178$
The City’s annual OPEB cost, the percentage of annual OPEB cost contributed to the plan, and the net OPEB
obligation for fiscal year 2016 and the preceding two fiscal years are as follows:
Year Annual Net OPEB
Ending OPEB Cost Obligation
12/31/16 99,013$ 43.9 % 366,178$
12/31/15 99,179 55.6 310,665
12/31/14 132,790 36.8 266,623
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, 2016
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, 2016 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, 2016
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, 2016, 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, 2016 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 $168,509 represents the original contributions for working capital; however,
the City’s share of subsequent construction costs are not determinable. Therefore, the City's Water enterprise fund has
not recorded any subsequent amounts as an equity investment or contributed capital related to the JWC.
The following financial information is taken from the JWC’s audited financial statements for the year ended
December 31, 2016:
Total assets 16,162,977$
Total liabilities 544,223$
Total net position 15,618,754$
Total revenue 7,730,658$
Total expenses 6,724,714$
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CITY OF NEW HOPE, MINNESOTA
NOTES TO THE FINANCIAL STATEMENTS
DECEMBER 31, 2016
Note 4: OTHER INFORMATION - CONTINUED
Of the total revenues, $7,592,332 represented assessments paid by member cities. The City’s share of JWC’s total
member assessments for the year ended December 31, 2016 was $2,361,126 or 31.1 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 $374,558.
The following financial information is taken from the District’s audited financial statements for the year ended
December 31, 2016, the most recent information available at the date of this report:
Total assets 5,124,089$
Total deferred outflows of resources 2,079,012$
Total liabilities 4,164,869$
Total deferred inflows of resources 287,640$
Total net position 2,750,592$
Total revenue 2,138,408$
Total expenses 2,831,796$
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, 2016,
the amount reported as investment in joint venture was $1,347,790.
According to a formula in the agreement, the City’s share of the District’s budget is 49.0 percent. Payments to the
District in 2016 totaled $1,022,593.The District’s financial statements for the period ended December 31, 2016 are
available at the District office located at: 4251 Xylon Avenue North, New Hope, Minnesota 55428.
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CITY OF NEW HOPE, MINNESOTA
NOTES TO THE FINANCIAL STATEMENTS
DECEMBER 31, 2016
Note 4: OTHER INFORMATION - CONTINUED
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, 2016 was $26,943, 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 $15,681s for these services in 2016.
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 2016, total
charges of $215,502 were incurred for these services.
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 2016 contribution to the BCWMC for its fiscal year ended
January 31, 2017 was $25,627, representing 5.2 percent of member’s contributions for the year.
Note 5: PRIOR PERIOD ADJUSTMENT
A prior period adjustment of $1,097,244 was recorded, in the Street Infrastructure fund and the Governmental Activities. The
adjustment increases resources received in advance and reduces fund balance in the Street Infrastructure fund and net position
in the Governmental Activities. This change was made to account for revenue, which was earned, received and recognized in
prior years but had not met certain Municipal State Aid timing requirements as of January 1st, 2016.
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REQUIRED SUPPLEMENTARY INFORMATION
CITY OF NEW HOPE
NEW HOPE, MINNESOTA
FOR THE YEAR ENDED
DECEMBER 31, 2016
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CITY OF NEW HOPE, MINNESOTA
REQUIRED SUPPLEMENTARY INFORMATION
FOR THE YEAR ENDED DECEMBER 31, 2016
Schedule of employer’s and non-employer contributing entity’s share of PERA net pension liability - General Employees
Retirement Fund
State's
Proportionate
City's Share of
Proportionate the Net Pension
Share of Liability City's
Fiscal the Net Pension Associated with Covered
Year Liability the City Total Payroll
Ending (a) (b) (a+b) (c)
06/30/16 0.0608 % 4,936,658$ 64,481$ 5,001,139$ 3,643,308 $ 135.5 % 68.9 %
06/30/15 0.0617 3,197,614 - 3,197,614 3,627,658 88.1 78.2
Required Supplementary Information
City's
Proportionate
Share of the
Net Pension
Plan Fiduciary
City's
Liability as a
Net Position
Proportion of
Percentage of
as a PercentageCovered
the Net Pension Payroll of the Total
Liability ((a+b)/c) Pension Liability
Note: Schedule is intended to show 10-year trend. Additional years will be reported as they become available.
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)
12/31/16 280,102$ 280,102$ -$ 3,734,693$ 7.5 %
12/31/15 284,367 284,367 - 3,791,560 7.5
(b/c)
Required Supplementary Information
Contributions as
a Percentage of
Covered Payroll
Note: Schedule is intended to show 10-year trend. Additional years will be reported as they become available.
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CITY OF NEW HOPE, MINNESOTA
REQUIRED SUPPLEMENTARY INFORMATION - CONTINUED
FOR THE YEAR ENDED DECEMBER 31, 2016
Schedule of employer’s share of PERA net pension liability - Public Employees Police and Fire 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)
06/30/16 0.2940 % 11,798,731$ -$ 11,798,731$ 2,732,301$ 431.8 % 63.9 %
06/30/15 0.2820 3,204,180 - 3,204,180 2,579,768 124.2 86.6
Required Supplementary Information
City's
Proportionate
Share of the
Net Pension
Liability as a Plan Fiduciary
City's Percentage of Net Position
Liability ((a+b)/c)Pension Liability
Proportion of Covered as a Percentage
the Net Pension Payroll of the Total
Note: Schedule is intended to show 10-year trend. Additional years will be reported as they become available.
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)
12/31/16 444,511$ 444,511$ -$ 2,743,893$ 16.2 %
12/31/15 448,029 448,029 - 2,765,611 16.2
(b/c)
Required Supplementary Information
Contributions as
a Percentage of
Covered Payroll
Note: Schedule is intended to show 10-year trend. Additional years will be reported as they become available.
Schedule of employer’s funding progress for the other postemployment benefit plan
Unfunded
Actuarial
Actuarial Actuarial Actuarial Accrued
Valuation Value of Accrued Liability Covered
Date Assets Liability (UAAL) Payroll
01/01/14 -$ 974,843$ 974,843$ - % 4,810,392$ 20.3 %
01/01/11 - 1,001,568 1,001,568 - 4,266,321 23.5
12/31/08 - 187,037 187,037 - 6,256,409 3.0
Funded
Ratio
UAAL as a
Percentage
of Covered
Payroll
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COMBINING AND INDIVIDUAL FUND
FINANCIAL STATEMENTS AND SCHEDULES
CITY OF NEW HOPE
NEW HOPE, MINNESOTA
FOR THE YEAR ENDED
DECEMBER 31, 2016
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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, 2016
Debt Service
9145 Total
2010B Nonmajor
Special G.O. Equipment Capital Governmental
Revenue Bonds Projects Funds
ASSETS
Cash and temporary investments 299,501$ 185,186$ 5,045,258$ 5,529,945$
Receivables
Accrued interest - - 7,529 7,529
Accounts 23,329 - - 23,329
Special assessments 8,008 - 77,008 85,016
Due from other governments - - 16,490 16,490
Due from other funds - - 304,282 304,282
Advances to other funds - - 2,588,705 2,588,705
TOTAL ASSETS 330,838$ 185,186$ 8,039,272$ 8,555,296$
LIABILITIES
Accounts and contracts payable -$ -$ 397,032$ 397,032$
DEFERRED INFLOWS OF RESOURCES
Unavailable revenue - special assessments - - 77,009 77,009
FUND BALANCES
Restricted for
Debt service - 185,186 - 185,186
Capital improvements - -2,873,440 2,873,440
Public safety police expenditures 127,392 - - 127,392
Ice arena 5,094 - - 5,094
Committed to solid waste operations 198,352 - - 198,352
Assigned to
General improvements - - 3,040,913 3,040,913
Capital equipment - - 456,803 456,803
City hall improvements - - 363,290 363,290
Park improvements - - 1,097,088 1,097,088
Unassigned - - (266,303) (266,303)
TOTAL FUND BALANCES 330,838 185,186 7,565,231 8,081,255
TOTAL LIABILITIES, DEFERRED INFLOWS OF
RESOURCES, AND FUND BALANCES 330,838$ 185,186$ 8,039,272$ 8,555,296$
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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, 2016
Debt Service
9145 Total
2010B Nonmajor
Special G.O. Equipment Capital Governmental
Revenue Bonds Projects Funds
REVENUES
Taxes
Property taxes -$ 160,962$ 348,883$ 509,845$
Intergovernmental - - 16,490 16,490
Charges for services 217,844 - 29,330 247,174
Fines and forfeitures 3,675 - -3,675
Special assessments - - 17,515 17,515
Investment earnings 4,294 585 90,851 95,730
Miscellaneous 5,000 - 16,470 21,470
TOTAL REVENUES 230,813 161,547 519,539 911,899
EXPENDITURES
Current
General government - - 136,472 136,472
Public safety 5,530 - - 5,530
Public works 216,237 - 579 216,816
Culture and recreation 5,700 - -5,700
Capital outlay
Public works - - 1,397,297 1,397,297
Culture and recreation - - 343,996 343,996
Debt service
Principal - 140,000 - 140,000
Interest - 15,000 63,903 78,903
Bond issuance costs - -58,188 58,188
TOTAL EXPENDITURES 227,467 155,000 2,000,435 2,382,902
EXCESS (DEFICIENCY) OF REVENUES
OVER (UNDER) EXPENDITURES 3,346 6,547 (1,480,896) (1,471,003)
OTHER FINANCING SOURCES
Transfers in - - 1,386,062 1,386,062
Bonds issued - - 2,824,075 2,824,075
Premium on bonds issued - - 107,553 107,553
TOTAL OTHER FINANCING
- - 4,317,690 4,317,690
3,346 6,547 2,836,794 2,846,687
327,492 178,639 4,728,437 5,234,568
SOURCES
NET CHANGE IN FUND BALANCES
FUND BALANCES, JANUARY 1
FUND BALANCES, DECEMBER 31 330,838$ 185,186$ 7,565,231$ 8,081,255$
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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, 2016
9021 9016 9017
Police Solid Waste Ice Arena
Forfeitures Management Endowment Total
ASSETS
Cash and temporary investments 127,392$ 167,015$ 5,094$ 299,501$
Receivables
Accounts - 23,329 - 23,329
Special assessments - 8,008 - 8,008
TOTAL ASSETS 127,392$ 198,352$ 5,094$ 330,838$
FUND BALANCES
Restricted for
Public safety police expenditures 127,392 - - 127,392
Ice arena - - 5,094 5,094
Committed to solid waste operations - 198,352 - 198,352
TOTAL FUND BALANCES 127,392$ 198,352$ 5,094$ 330,838$
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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, 2016
9021 9016 9017
Police Solid Waste Ice Arena
Forfeitures Management Endowment Total
REVENUES
Charges for services -$ 217,844$ -$ 217,844$
Fines and forfeitures 3,675 - - 3,675
Investment earnings 1,866 2,428 - 4,294
Miscellaneous - - 5,000 5,000
TOTAL REVENUES 5,541 220,272 5,000 230,813
EXPENDITURES
Current
Public safety
Supplies 5,530 - - 5,530
Public works
Other services and charges - 216,237 - 216,237
Culture and recreation
Supplies - - 5,700 5,700
TOTAL EXPENDITURES 5,530 216,237 5,700 227,467
NET CHANGE IN FUND BALANCES 11 4,035 (700) 3,346
FUND BALANCES, JANUARY 1 127,381 194,317 5,794 327,492
FUND BALANCES, DECEMBER 31 127,392$ 198,352$ 5,094$ 330,838$
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CITY OF NEW HOPE, MINNESOTA
SPECIAL REVENUE FUND - SOLID WASTE MANAGEMENT FUND
SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES -
BUDGET AND ACTUAL
FOR THE YEAR ENDED DECEMBER 31, 2016
Actual Variance with
Original Final Amounts Final Budget
REVENUES
Charges for services 218,650$ 218,650$ 217,844$ (806)$
Investment earnings 2,500 2,500 2,428 (72)
TOTAL REVENUES 221,150 221,150 220,272 (878)
EXPENDITURES
Current
Public works
Other services and charges 216,735 216,735 216,237 498
NET CHANGE IN FUND BALANCES 4,415 4,415 4,035 (380)
FUND BALANCES, JANUARY 1 194,317 194,317 194,317 -
FUND BALANCES, DECEMBER 31 198,732$ 198,732$ 198,352$ (380)$
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.
Xylon Avenue Improvement Fund - This fund accounts for the accumulation of reserves for the Xylon Avenue Improvement
project.
Park Infrastructure Fund - This fund is used to account for park improvement projects.
Temporary Financing Fund – is used to account for various capital project and capital outlay purchases until permanent financing is
acquired.
2017 Street Improvement Project Fund - This fund is used to account for the 2017 street improvement project.
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CITY OF NEW HOPE, MINNESOTA
NONMAJOR CAPITAL PROJECTS FUNDS
SUBCOMBINING BALANCE SHEET
DECEMBER 31, 2016
9010 9202 9223 9233 9242 9251
2017 Street
Fire City Hall Xylon Avenue Park Temporary Improvement
Capital Projects CIP Improvements Infrastructure Financing Project Total
ASSETS
Cash and temporary investments 456,803$ 381,833$ 92,962$ 1,099,822$ 140,398$ 2,873,440$ 5,045,258$
Accrued interest - - - - 7,529 - 7,529
Special assessments - - - - 77,008 - 77,008
Due from other governments - - - 16,490 - - 16,490
Due from other funds - - - - 304,282 - 304,282
Advances to other funds - - - - 2,588,705 - 2,588,705
TOTAL ASSETS 456,803$ 381,833$ 92,962$ 1,116,312$ 3,117,922$ 2,873,440$ 8,039,272$
LIABILITIES
Accounts and contracts payable -$ 18,543$ 359,265$ 19,224$ -$ -$ 397,032$
DEFERRED INFLOWS OF RESOURCES
Unavailable revenue - special assessments - - - - 77,009 - 77,009
FUND BALANCES
Restricted for capital improvements - - - - - 2,873,440 2,873,440
Assigned to
General improvements - - - - 3,040,913 - 3,040,913
Capital equipment 456,803 - - - - - 456,803
City hall improvements - 363,290 - - - - 363,290
Park improvements - -- 1,097,088 - - 1,097,088
Unassigned - -(266,303) - - (266,303)
TOTAL FUND BALANCES 456,803 363,290 (266,303) 1,097,088 3,040,913 2,873,440 7,565,231
TOTAL LIABILITIES, DEFERRED
INFLOWS OF RESOURCES,
AND FUND BALANCES 456,803$ 381,833$ 92,962$ 1,116,312$ 3,117,922$ 2,873,440$ 8,039,272$
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CITY OF NEW HOPE, MINNESOTA
NONMAJOR CAPITAL PROJECTS FUNDS
SUBCOMBINING STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES
FOR THE YEAR ENDED DECEMBER 31, 2016
9010 9202 9223 9233 9242 9251
2017 Street
Fire City Hall Xylon Avenue Park Temporary Improvement
Capital Projects CIP Improvements Infrastructure Financing Project Total
REVENUES
Taxes
Property taxes -$ -$ 34,857$ 314,026$ -$ -$ 348,883$
Intergovernmental
County - - - 16,490 - - 16,490
Charges for services - - - 29,330 - - 29,330
Special assessments - - - - 17,515 - 17,515
Investment earnings 4,832 5,654 24,557 11,162 44,646 - 90,851
Miscellaneous - - - 4,470 12,000 - 16,470
TOTAL REVENUES 4,832 5,654 59,414 375,478 74,161 - 519,539
EXPENDITURES
Current
General government - 136,472 - - - - 136,472
Public works - -579 - - - 579
Capital outlay
Public works - - 1,397,297 - - - 1,397,297
Culture and recreation - - - 343,996 - - 343,996
Debt service
Interest - - 63,903 - - - 63,903
Bond issuance costs - - - - - 58,188 58,188
TOTAL EXPENDITURES - 136,472 1,461,779 343,996 - 58,188 2,000,435
EXCESS (DEFICIENCY) OF REVENUES
OVER (UNDER) EXPENDITURES 4,832 (130,818) (1,402,365) 31,482 74,161 (58,188) (1,480,896)
OTHER FINANCING SOURCES
Transfers in 150,000 100,000 1,136,062 - - - 1,386,062
Bonds issued - - - - - 2,824,075 2,824,075
Premium on bonds issued - - - - - 107,553 107,553
TOTAL OTHER FINANCING
SOURCES 150,000 100,000 1,136,062 - - 2,931,628 4,317,690
NET CHANGE IN FUND BALANCES 154,832 (30,818) (266,303) 31,482 74,161 2,873,440 2,836,794
FUND BALANCES, JANUARY 1 301,971 394,108 - 1,065,606 2,966,752 - 4,728,437
FUND BALANCES, DECEMBER 31 456,803$ 363,290$ (266,303)$ 1,097,088$ 3,040,913$ 2,873,440$ 7,565,231$
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INTENTIONALLY
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CITY OF NEW HOPE, MINNESOTA
GENERAL FUND
SCHEDULE OF REVENUES, EXPENDITURES AND
CHANGES IN FUND BALANCES - BUDGET AND ACTUAL - CONTINUED ON THE FOLLOWING PAGES
FOR THE YEAR ENDED DECEMBER 31, 2016
(With comparative actual amounts for the year ended December 31, 2015)
2015
Actual Variance with Actual
Original Final Amounts Final Budget Amounts
REVENUES
Taxes
Property taxes 8,898,654$ 8,898,654$ 8,954,626$ 55,972$ 8,308,447$
Franchise taxes 440,000 440,000 447,248 7,248 442,556
Total taxes 9,338,654 9,338,654 9,401,874 63,220 8,751,003
Licenses and permits
Business regulatory licenses 77,830 77,830 84,663 6,833 75,355
Non-business licenses and permits 316,000 316,000 381,885 65,885 314,602
Total licenses and permits 393,830 393,830 466,548 72,718 389,957
Intergovernmental
Local government aid 616,161 616,161 616,161 - 595,055
Highway maintenance aid 174,000 174,000 191,424 17,424 190,051
Other Federal, state, and local grants 29,300 29,300 87,657 58,357 92,975
State insurance premium tax 235,000 235,000 274,938 39,938 255,884
Total intergovernmental 1,054,461 1,054,461 1,170,180 115,719 1,133,965
Charges for services
General government 176,900 176,900 182,857 5,957 178,230
Public safety 528,020 528,020 461,920 (66,100) 520,526
Public works 5,010 5,010 5,574 564 4,130
Culture and recreation 624,725 624,725 674,273 49,548 602,631
Total charges for services 1,334,655 1,334,655 1,324,624 (10,031) 1,305,517
Fines and forfeitures 366,000 366,000 188,285 (177,715) 232,272
Special assessments - - 11,751 11,751 2,846
Investment earnings 50,000 50,000 18,421 (31,579) 47,988
Miscellaneous 67,500 67,500 633 (66,867) 51,192
TOTAL REVENUES 12,605,100 12,605,100 12,582,316 (22,784) 11,914,740
Budgeted Amounts
2016
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CITY OF NEW HOPE, MINNESOTA
GENERAL FUND
SCHEDULE OF REVENUES, EXPENDITURES AND
CHANGES IN FUND BALANCES - BUDGET AND ACTUAL - CONTINUED
FOR THE YEAR ENDED DECEMBER 31, 2016
(With comparative actual amounts for the year ended December 31, 2015)
2015
Actual Variance with Actual
Original Final Amounts Final Budget Amounts
EXPENDITURES
Current
General government
Mayor and City Council
Personnel services 51,950$ 51,950$ 52,183$ (233)$ 51,114$
Supplies 2,000 2,000 1,784 216 2,705
Other services and charges 44,949 44,949 44,059 890 42,302
Total 98,899 98,899 98,026 873 96,121
City hall
Supplies 25,000 25,000 21,649 3,351 23,873
Other services and charges 228,543 228,543 201,279 27,264 210,996
Total 253,543 253,543 222,928 30,615 234,869
City manager
Personnel services 360,800 360,800 369,991 (9,191) 348,783
Supplies 1,000 1,000 2,485 (1,485) 771
Other services and charges 25,275 25,275 25,623 (348) 30,247
Total 387,075 387,075 398,099 (11,024) 379,801
Elections
Personnel services 37,400 37,400 31,353 6,047 -
Supplies 2,500 2,500 2,626 (126) -
Other services and charges 5,800 5,800 5,432 368 4,181
Total 45,700 45,700 39,411 6,289 4,181
Finance
Personnel services 162,000 162,000 160,048 1,952 156,983
Supplies 1,500 1,500 1,454 46 511
Other services and charges 121,464 121,464 142,081 (20,617) 126,073
Total 284,964 284,964 303,583 (18,619) 283,567
Auditing
Other services and charges 24,800 24,800 21,600 3,200 22,319
Assessing
Other services and charges 127,000 127,000 125,201 1,799 121,436
Legal
Other services and charges 40,000 40,000 38,887 1,113 37,535
Human resources
Personnel services 239,800 239,800 239,978 (178) 227,842
Supplies 1,000 1,000 331 669 402
Other services and charges 24,155 24,155 27,065 (2,910) 26,112
Total 264,955 264,955 267,374 (2,419) 254,356
Budgeted Amounts
2016
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CITY OF NEW HOPE, MINNESOTA
GENERAL FUND
SCHEDULE OF REVENUES, EXPENDITURES AND
CHANGES IN FUND BALANCES - BUDGET AND ACTUAL - CONTINUED
FOR THE YEAR ENDED DECEMBER 31, 2016
(With comparative actual amounts for the year ended December 31, 2015)
2015
Actual Variance with Actual
Original Final Amounts Final Budget Amounts
Budgeted Amounts
2016
EXPENDITURES - CONTINUED
Current - continued
General government - continued
Planning and zoning
Personnel services 112,700$ 112,700$ 43,022$ 69,678$ 51,053$
Supplies 800 800 103 697 672
Other services and charges 52,481 52,481 41,961 10,520 55,119
Total 165,981 165,981 85,086 80,895 106,844
Communication
Personnel services 98,000 98,000 99,724 (1,724) 96,267
Supplies 1,600 1,600 1,582 18 1,342
Other services and charges 41,853 41,853 34,463 7,390 45,066
Total 141,453 141,453 135,769 5,684 142,675
Total general government 1,834,370 1,834,370 1,735,964 98,406 1,683,704
Public safety
Police
Personnel services 4,680,700 4,680,700 4,242,907 437,793 4,103,929
Supplies 76,080 76,080 95,776 (19,696) 92,077
Other services and charges 1,016,181 1,016,181 1,094,522 (78,341) 1,013,480
Total 5,772,961 5,772,961 5,433,205 339,756 5,209,486
Police reserves
Personnel services - - 10,629 (10,629) 14,331
Supplies 4,505 4,505 1,215 3,290 3,644
Other services and charges 21,600 21,600 15,811 5,789 16,309
Total 26,105 26,105 27,655 (1,550) 34,284
Fire and safety
Supplies 5,000 5,000 713 4,287 995
Other services and charges 1,100,892 1,100,892 1,078,474 22,418 1,055,702
Total 1,105,892 1,105,892 1,079,187 26,705 1,056,697
Animal control
Personnel services 73,200 73,200 72,963 237 105,234
Supplies 675 675 1,610 (935) 196
Other services and charges 38,470 38,470 36,682 1,788 26,843
Total 112,345 112,345 111,255 1,090 132,273
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CITY OF NEW HOPE, MINNESOTA
GENERAL FUND
SCHEDULE OF REVENUES, EXPENDITURES AND
CHANGES IN FUND BALANCES - BUDGET AND ACTUAL - CONTINUED
FOR THE YEAR ENDED DECEMBER 31, 2016
(With comparative actual amounts for the year ended December 31, 2015)
2015
Actual Variance with Actual
Original Final Amounts Final Budget Amounts
Budgeted Amounts
2016
EXPENDITURES - CONTINUED
Current - continued
Public safety - continued
Protective inspection
Personnel services 360,900$ 360,900$ 357,210$ 3,690$ 335,952$
Supplies 2,850 2,850 2,041 809 3,518
Other services and charges 104,750 104,750 152,019 (47,269) 93,895
Total 468,500 468,500 511,270 (42,770) 433,365
Total public safety 7,485,803 7,485,803 7,162,572 323,231 6,866,105
Public works
Street maintenance
Personnel services 514,400 514,400 521,860 (7,460) 419,824
Supplies 132,050 132,050 122,786 9,264 96,055
Other services and charges 706,424 706,424 711,248 (4,824) 558,254
Total 1,352,874 1,352,874 1,355,894 (3,020) 1,074,133
Engineering
Other services and charges 30,000 30,000 33,659 (3,659) 37,959
Total public works 1,382,874 1,382,874 1,389,553 (6,679) 1,112,092
Culture and recreation
Recreation
Personnel services 559,100 559,100 560,936 (1,836) 535,022
Supplies 94,400 94,400 114,047 (19,647) 108,203
Other services and charges 227,253 227,253 229,127 (1,874) 228,691
Total 880,753 880,753 904,110 (23,357) 871,916
Parks
Personnel services 566,300 566,300 534,566 31,734 491,287
Supplies 37,890 37,890 29,440 8,450 31,355
Other services and charges 296,853 296,853 259,098 37,755 264,272
Total 901,043 901,043 823,104 77,939 786,914
Swimming pool
Personnel services 134,700 134,700 132,194 2,506 125,100
Supplies 40,240 40,240 32,497 7,743 33,150
Other services and charges 43,317 43,317 40,526 2,791 36,661
Total 218,257 218,257 205,217 13,040 194,911
Total culture and recreation 2,000,053 2,000,053 1,932,431 67,622 1,853,741
Total current expenditures 12,703,100 12,703,100 12,220,520 482,580 11,515,642
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CITY OF NEW HOPE, MINNESOTA
GENERAL FUND
SCHEDULE OF REVENUES, EXPENDITURES AND
CHANGES IN FUND BALANCES - BUDGET AND ACTUAL - CONTINUED
FOR THE YEAR ENDED DECEMBER 31, 2016
(With comparative actual amounts for the year ended December 31, 2015)
2015
Actual Variance with Actual
Original Final Amounts Final Budget Amounts
Budgeted Amounts
2016
EXPENDITURES - CONTINUED
Capital outlay
General government 20,000$ 20,000$ 14,450$ 5,550$ 2,447$
Public safety 138,700 138,700 139,280 (580) 109,277
Culture and recreation 3,500 3,500 - 3,500 2,256
Total capital outlay 162,200 162,200 153,730 8,470 113,980
TOTAL EXPENDITURES 12,865,300 12,865,300 12,374,250 491,050 11,629,622
EXCESS OF REVENUES
OVER EXPENDITURES (260,200) (260,200) 208,066 468,266 285,118
OTHER FINANCING SOURCES (USES)
Transfers in 260,200 260,200 235,200 (25,000) 224,000
Transfers out - - (250,000) (250,000) (250,000)
TOTAL OTHER FINANCING
SOURCES (USES)260,200 260,200 (14,800) (275,000) (26,000)
NET CHANGE IN FUND BALANCES - - 193,266 193,266 259,118
FUND BALANCES, JANUARY 1 6,080,412 6,080,412 6,080,412 - 5,821,294
FUND BALANCES, DECEMBER 31 6,080,412$ 6,080,412$ 6,273,678$ 193,266$ 6,080,412$
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INTENTIONALLY
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CITY OF NEW HOPE, MINNESOTA
INTERNAL SERVICE FUNDS
Internal service funds are used to account for activities and services performed for other organizational units within the City. Charges
to other City agencies are made to support these activities.
Central Garage Fund - This fund is used to account for the rental of motor vehicles and other equipment to other departments.
Employee Leave Fund - This fund accounts for the cost of providing leave time benefits to employees, which includes vacation,
holiday, sick time, and personal leave. Funding is based on chargebacks to department based on a percentage of wages.
Insurance Reserve Fund - This fund accounts for all insurance costs for the City. Funding is provided by chargebacks to departments
by percentage of wages for health, dental, life, and disability insurance. Funding for general liability and property insurance is
provided by chargebacks to departments based on activities and the use of property.
Information Technology Fund - This fund accounts for the City’s investment in, and operations of, computer networks, application
and system software, Internet access, data storage, and related activities.
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CITY OF NEW HOPE, MINNESOTA
INTERNAL SERVICE FUNDS
COMBINING STATEMENT OF NET POSITION
DECEMBER 31, 2016
9402 9408 9407 9410
Central Employee Insurance Information
Garage Leave Reserve Technology Totals
ASSETS
CURRENT ASSETS
Cash and temporary investments 4,858,432$ 958,259$ 580,952$ 428,110$ 6,825,753$
Receivables
Accounts - - 78,078 - 78,078
Inventories 84,776 - - - 84,776
TOTAL CURRENT ASSETS 4,943,208 958,259 659,030 428,110 6,988,607
NONCURRENT ASSETS
Capital assets
Land 85,647 - - - 85,647
Buildings and structures 3,141,396 - - - 3,141,396
Vehicles and equipment 8,505,791 - - 344,383 8,850,174
Less: accumulated depreciation (8,177,078) - - (266,922) (8,444,000)
Total capital assets
(net of accumulated depreciation)3,555,756 - - 77,461 3,633,217
TOTAL ASSETS 8,498,964 958,259 659,030 505,571 10,621,824
DEFERRED OUTFLOWS OF RESOURCES
Deferred pension resources 101,807 - - - 101,807
LIABILITIES
CURRENT LIABILITIES
Accrued salaries payable 4,939 18,898 37,062 - 60,899
Accounts and contracts payable 24,967 - 53,056 62,475 140,498
Due to other governments 1,275 - - 21,927 23,202
Compensated absences payable, current portion - 56,665 - - 56,665
TOTAL CURRENT LIABILITIES 31,181 75,563 90,118 84,402 281,264
NONCURRENT LIABILITIES
Other postemployment benefits payable - - 317,296 - 317,296
Pension liability 282,438 - - - 282,438
Compensated absences payable - 509,980 - - 509,980
TOTAL NONCURRENT LIABILITIES 282,438 509,980 317,296 - 1,109,714
TOTAL LIABILITIES 313,619 585,543 407,414 84,402 1,390,978
DEFERRED INFLOWS OF RESOURCES
Deferred pension resources 31,345 - - - 31,345
NET POSITION
Net investment in capital assets 3,555,756 - - 77,461 3,633,217
Unrestricted 4,700,051 372,716 251,616 343,708 5,668,091
TOTAL NET POSITION 8,255,807$ 372,716$ 251,616$ 421,169$ 9,301,308$
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CITY OF NEW HOPE, MINNESOTA
INTERNAL SERVICE FUNDS
COMBINING STATEMENT OF REVENUES, EXPENSES AND
CHANGES IN NET POSITION
FOR THE YEAR ENDED DECEMBER 31, 2016
9402 9408 9407 9410
Central Employee Insurance Information
Garage Leave Reserve Technology Totals
OPERATING REVENUES
Billings to departments 1,878,392$ 593,549$ 80,971$ 693,270$ 3,246,182$
Other 1,100 - 76,087 - 77,187
TOTAL OPERATING REVENUES 1,879,492 593,549 157,058 693,270 3,323,369
OPERATING EXPENSES
Personnel services 301,028 469,250 48,277 (33,236) 785,319
Supplies 265,027 - - 38,624 303,651
Utilities 53,540 - - 36,734 90,274
Other services and charges 271,476 - 206,101 486,073 963,650
Depreciation 851,489 - -26,876 878,365
TOTAL OPERATING EXPENSES 1,742,560 469,250 254,378 555,071 3,021,259
OPERATING INCOME (LOSS)136,932 124,299 (97,320) 138,199 302,110
NONOPERATING REVENUES
Investment earnings 49,305 12,154 8,673 3,576 73,708
Gain on sale of capital assets 67,336 - - - 67,336
TOTAL NONOPERATING REVENUES 116,641 12,154 8,673 3,576 141,044
INCOME (LOSS) BEFORE TRANSFERS 253,573 136,453 (88,647) 141,775 443,154
TRANSFERS OUT (31,500) - - (50,400) (81,900)
CHANGE IN NET POSITION 222,073 136,453 (88,647) 91,375 361,254
NET POSITION, JANUARY 1 8,033,734 236,263 340,263 329,794 8,940,054
NET POSITION, DECEMBER 31 8,255,807$ 372,716$ 251,616$ 421,169$ 9,301,308$
-119-
CITY OF NEW HOPE, MINNESOTA
INTERNAL SERVICE FUNDS
COMBINING STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED DECEMBER 31, 2016
9402 9408 9407 9410
Central Employee Insurance Information
Garage Leave Reserve Technology Totals
CASH FLOWS FROM OPERATING ACTIVITIES
Receipts from interfund services provided 1,878,392$ 593,549$ 10,424$ 693,270$ 3,175,635$
Other operating receipts - - 77,651 - 77,651
Payments to suppliers (605,912) - (154,135) (531,340) (1,291,387)
Payments to employees (302,499) (432,263) 18,387 - (716,375)
NET CASH PROVIDED (USED)
BY OPERATING ACTIVITIES 969,981 161,286 (47,673) 161,930 1,245,524
CASH FLOWS FROM NONCAPITAL
FINANCING ACTIVITIES
Transfers out (31,500) - - (50,400) (81,900)
CASH FLOWS FROM CAPITAL
AND RELATED FINANCING ACTIVITIES
Acquisition capital assets (749,101) - - - (749,101)
Proceeds from sale of assets 74,135 - - - 74,135
NET CASH PROVIDED (USED) BY CAPITAL
AND RELATED FINANCING ACTIVITIES (674,966) - - - (674,966)
CASH FLOWS FROM INVESTING ACTIVITIES
Investment earnings 49,305 12,154 8,673 3,576 73,708
NET INCREASE (DECREASE)
IN CASH AND CASH EQUIVALENTS 312,820 173,440 (39,000) 115,106 562,366
CASH AND CASH EQUIVALENTS, JANUARY 1 4,545,612 784,819 619,952 313,004 6,263,387
CASH AND CASH EQUIVALENTS, DECEMBER 31 4,858,432$ 958,259$ 580,952$ 428,110$ 6,825,753$
RECONCILIATION OF OPERATING INCOME (LOSS)
TO NET CASH PROVIDED (USED)
BY OPERATING ACTIVITIES
Operating income (loss)136,932$ 124,299$ (97,320)$ 138,199$ 302,110$
Adjustments to reconcile operating income (loss)
to net cash provided (used) by operating activities
Depreciation 851,489 - - 26,876 878,365
(Increase) decrease in assets
Accounts receivable - - (70,547) - (70,547)
Due from other governments - - 1,564 - 1,564
Inventories 10,932 - - - 10,932
(Increase) decrease in deferred inflows of resources
Deferred pension resources (78,309) - - 3,629 (74,680)
Increase (decrease) in liabilities
Accounts and contracts payable (27,477) - 51,966 24,620 49,109
Accrued salaries payable 664 7,599 18,387 - 26,650
Due to other governments 676 - - 5,471 6,147
Compensated absences payable - 29,388 - - 29,388
Other postemployment benefits payable - - 48,277 - 48,277
Pension liability 82,302 - - (30,908) 51,394
Increase (decrease) in deferred outflows of resources
Deferred pension resources (7,228) - - (5,957) (13,185)
NET CASH PROVIDED (USED)
BY OPERATING ACTIVITIES 969,981$ 161,286$ (47,673)$ 161,930$ 1,245,524$
SCHEDULE OF NONCASH CAPITAL AND
RELATED FINANCING ACTIVITIES
Loss on sale or disposal of capital assets 6,799$ -$ -$ -$ 6,799$
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CITY OF NEW HOPE, MINNESOTA
COMBINING STATEMENT OF FIDUCIARY NET POSITION
AGENCY FUND
DECEMBER 31, 2016
9503 9504
Pass-Through Flexible
Grant Fund Spending Fund Total
ASSETS
69,749$ 5,146$ 74,895$
LIABILITIES
Deposits payable 69,749$ 5,146$ 74,895$
Cash and temporary investments
-121-
CITY OF NEW HOPE, MINNESOTA
AGENCY FUND
COMBINING STATEMENT OF CHANGES IN ASSETS AND LIABILITIES
FOR THE YEAR ENDED DECEMBER 31, 2016
Balance Balance
January 1 Additions Deductions December 31
PASS-THROUGH GRANT FUND
ASSETS
Cash and temporary investments 80,249$ 14,525$ (25,025)$ 69,749$
LIABILITIES
Deposits payable 80,249$ 14,525$ (25,025)$ 69,749$
FLEXIBLE SPENDING FUND
ASSETS
Cash and temporary investments 3,738$ 5,146$ (3,738)$ 5,146$
LIABILITIES
Deposits payable 3,738$ 5,146$ (3,738)$ 5,146$
TOTAL - ALL FUNDS
ASSETS
Cash and temporary investments 83,987$ 19,671$ (28,763)$ 74,895$
LIABILITIES
Deposits payable 83,987$ 19,671$ (28,763)$ 74,895$
-122-
STATISTICAL SECTION (UNAUDITED)
CITY OF NEW HOPE
NEW HOPE, MINNESOTA
FOR THE YEAR ENDED
DECEMBER 31, 2016
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INTENTIONALLY
-124-
STATISTICAL SECTION
(Unaudited)
This part of the City’s comprehensive annual financial report presents detailed information as a context for understanding what the
information in the financial statements, note disclosures, and required supplementary information says about the City’s overall
financial health.
Financial Trends
These schedules contain trend information to help the reader understand how the City’s financial performance and well-being
have changed over time.
Revenue Capacity
These schedules contain information to help the reader assessthe City’s most significant local revenue source; property taxes.
Debt Capacity
These schedules present information to help the reader assess the affordability of the City’s current levels of outstanding debt and
the City’s ability to issue additional debt in the future.
Demographic and Economic Information
These schedules offer demographic and economic indicators to help the reader understand the environment within which the
City’s financial activities take place.
Operating Information
These schedules contain service and infrastructure data to help the reader understand how the information in the City’s financial
report relates to the services the City provides and the activities it performs.
Sources: Unless otherwise noted, the information in these schedules is derived from the comprehensive annual financial reports for
the relevant year.
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INTENTIONALLY
-126-
2016 2015
REVENUES
Taxes
Property taxes 10,868,985$ 10,145,204$ 7.13 %
Tax increments 492,584 430,879 14.32
Franchise taxes 447,248 442,556 1.06
Licenses and permits 466,548 389,957 19.64
Intergovernmental 2,063,546 1,359,511 51.79
Charges for services 1,571,798 1,601,081 (1.83)
Fines and forfeitures 191,960 237,951 (19.33)
Special assessments 173,158 38,417 350.73
Investment earnings 304,252 274,116 10.99
Miscellaneous 42,103 202,057 (79.16)
TOTAL REVENUES 16,622,182$ 15,121,729$ 9.92 %
Per capita 783$ 726$ 7.83 %
EXPENDITURES
Current
General government 1,872,436$ 1,688,752$ 10.88 %
Public safety 7,168,102 6,866,105 4.40
Public works 1,606,369 1,328,371 20.93
Culture and recreation 1,938,131 1,853,741 4.55
Economic development 588,167 498,479 17.99
Capital outlay 8,220,964 8,204,964 0.20
Debt service
Principal 415,000 405,000 2.47
Interest 257,661 131,530 95.90
Bond issuance costs 58,188 114,607 (49.23)
TOTAL EXPENDITURES 22,125,018$ 21,091,549$ 4.90 %
Per capita 1,042$ 1,013$ 2.86 %
Total Long-term indebtedness 13,354,075$ 10,945,000$ 22.01 %
Per capita 629 526 19.58
General Fund Balance - December 31 6,273,678$ 6,080,412$ 3.18 %
Per capita 296 292 1.37
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, 2016
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CITY OF NEW HOPE, MINNESOTA
STATISTICAL SECTION (UNAUDITED)
NET POSITION BY COMPONENT
LAST TEN FISCAL YEARS
(accrual basis of accounting)
2007 2008 2009 2010
Governmental activities
Net investment in capital assets 14,572,777$ 16,099,860$ 16,411,454$ 16,495,175$
Restricted 18,030,936 17,857,296 19,454,696 9,279,142
Unrestricted 7,399,637 8,643,991 9,151,912 21,971,477
Total governmental activities net position 40,003,350$ 42,601,147$ 45,018,062$ 47,745,794$
Business-type activities
Net investment in capital assets 8,018,286$ 9,008,538$ 9,395,068$ 9,989,405$
Restricted - - - -
Unrestricted 1,625,562 1,423,111 1,650,590 2,541,156
Total business-type activities net position 9,643,848$ 10,431,649$ 11,045,658$ 12,530,561$
Total primary government
Net investment in capital assets 22,591,063$ 25,108,398$ 25,806,522$ 26,484,580$
Restricted 18,030,936 17,857,296 19,454,696 9,279,142
Unrestricted 9,025,199 10,067,102 10,802,502 24,512,633
Total primary government 49,647,198$ 53,032,796$ 56,063,720$ 60,276,355$
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.
-128-
2011
(Restated)1905 2013 2014 2015 2016
20,628,143$ 26,793,142$ 30,509,373$ 26,305,906$ 27,549,276$ 29,951,754$
6,018,734 1,619,696 1,619,394 5,680,117 5,917,848 4,893,801
21,845,278 22,746,207 23,704,592 23,130,558 14,623,043 11,081,824
48,492,155$ 51,159,045$ 55,833,359$ 55,116,581$ 48,090,167$ 45,927,379$
11,114,666$ 12,843,624$ 14,142,276$ 14,757,333$ 16,087,559$ 19,286,134$
- 150,000 300,000 455,000 627,939 868,853
3,978,803 2,735,144 2,496,008 1,798,707 (825,297) (1,839,376)
15,093,469$ 15,728,768$ 16,938,284$ 17,011,040$ 15,890,201$ 18,315,611$
31,742,809$ 39,636,766$ 44,651,649$ 41,063,239$ 43,636,835$ 49,237,888$
6,018,734 1,769,696 1,919,394 6,135,117 6,545,787 5,762,654
25,824,081 25,481,351 26,200,600 24,929,265 13,797,746 9,242,448
63,585,624$ 66,887,813$ 72,771,643$ 72,127,621$ 63,980,368$ 64,242,990$
Fiscal Year
-129-
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)
2007 2008 2009 2010
Expenses
Governmental activities
General government 3,547,855$ 2,492,386$ 2,244,977$ 2,552,425$
Public safety 5,291,323 5,988,010 6,218,996 5,864,775
Public works 650,686 1,381,386 1,291,983 1,625,959
Culture and recreation 1,868,403 1,967,129 2,053,788 1,899,105
Economic development - - - 192,431
Interest on long-term debt 369,508 340,081 275,532 252,224
Total governmental activities expenses 11,727,775 12,168,992 12,085,276 12,386,919
Business-type activities
Sewer - - - 1,928,845
Water 4,955,642 4,915,929 5,265,147 2,915,757
Golf course 440,666 383,521 369,579 346,345
Ice arena 723,264 780,816 694,039 712,153
Storm water 387,889 361,542 393,118 430,899
Street lighting 126,966 121,912 126,983 104,099
Total business-type activities expenses 6,634,427 6,563,720 6,848,866 6,438,098
Total expenses 18,362,202$ 18,732,712$ 18,934,142$ 18,825,017$
Program revenues
Governmental activities
Charges for services
General government 1,314,007$ 1,164,394$ 1,048,549$ 984,855$
Public safety 251,622 151,180 134,680 218,732
Public works - - - -
Culture and recreation 503,648 579,694 527,079 562,383
Economic development - - - 104,713
Operating grants and contributions 270,403 388,166 586,508 1,356,292
Capital grants and contributions 392,468 63,947 117,544 787,047
Total governmental activities program revenues 2,732,148 2,347,381 2,414,360 4,014,022
Business-type activities
Charges for services
Sewer utility - - - 2,292,300
Water utility 4,870,737 5,175,878 5,141,131 3,082,771
Golf course 337,712 330,782 345,550 313,941
Ice arena 610,145 659,377 723,975 741,266
Storm water 922,850 951,699 933,828 943,883
Street lighting 116,940 133,634 149,339 121,647
Operating grants and contributions 152,038 16,250 66,609 470,183
Capital grants and contributions 21,381 16,353 75,209 30,739
Total business-type activities program revenues 7,031,803 7,283,973 7,435,641 7,996,730
Total program revenues 9,763,951$ 9,631,354$ 9,850,001$ 12,010,752$
Fiscal Year
-130-
2011
(Restated)2012 2013 2014 2015 2016
1,841,145$ 1,931,318$ 1,837,194$ 1,976,377$ 1,700,133$ 1,871,736$
6,129,860 6,062,362 6,238,779 6,795,836 7,258,504 9,463,124
1,795,189 2,126,043 1,790,669 2,467,618 4,229,077 3,143,421
1,882,279 1,928,591 1,946,243 2,145,224 2,223,152 2,405,905
536,433 762,202 431,332 1,704,010 655,093 732,106
236,827 407,744 289,009 140,321 269,284 323,326
12,421,733 13,218,260 12,533,226 15,229,386 16,335,243 17,939,618
2,068,282 2,220,438 2,310,604 1,976,864 2,458,724 2,187,006
3,530,521 3,682,602 3,215,714 4,635,686 4,584,929 3,633,022
322,679 298,555 262,894 304,059 291,695 341,776
844,828 771,628 957,784 877,826 880,581 949,438
485,943 425,112 768,610 558,160 713,218 830,108
113,753 104,721 117,518 99,560 105,452 102,894
7,366,006 7,503,056 7,633,124 8,452,155 9,034,599 8,044,244
19,787,739$ 20,721,316$ 20,166,350$ 23,681,541$ 25,369,842$ 25,983,862$
220,629$ 177,174$ 198,297$ 234,440$ 254,333$ 267,970$
877,159 804,725 880,843 1,047,721 1,073,079 1,035,725
219,353 219,548 226,228 224,790 219,634 220,208
637,077 653,293 672,067 617,459 668,480 699,613
98,139 94,664 - - - 20,000
783,382 2,162,263 828,276 1,013,058 845,517 1,002,681
1,107,042 245,290 3,929,565 47,917 460,537 711,527
3,942,781 4,356,957 6,735,276 3,185,385 3,521,580 3,957,724
2,352,635 2,376,021 2,443,202 2,414,482 2,468,638 2,627,875
3,169,859 3,581,225 3,460,008 3,634,873 3,777,108 4,124,346
278,788 296,316 268,133 254,508 287,056 315,162
752,671 694,702 725,211 775,784 745,886 749,689
947,031 948,650 963,167 948,537 981,723 1,037,429
122,742 124,397 125,604 123,060 128,890 137,525
24,031 22,340 306,520 444,484 33,032 159,898
114,826 106,291 225,300 11,469 194,590 1,394,822
7,762,583 8,149,942 8,517,145 8,607,197 8,616,923 10,546,746
11,705,364$ 12,506,899$ 15,252,421$ 11,792,582$ 12,138,503$ 14,504,470$
Fiscal Year
-131-
CITY OF NEW HOPE, MINNESOTA
STATISTICAL SECTION (UNAUDITED)
CHANGES IN NET POSITION - CONTINUED
LAST TEN FISCAL YEARS
(accrual basis of accounting)
2007 2008 2009 2010
Net revenues (expenses)
Governmental activities (8,995,627)$ (9,821,611)$ (9,670,916)$ (8,372,897)$
Business-type activities 397,376 720,253 586,775 1,558,632
Total primary government revenues (expenses)(8,598,251)$ (9,101,358)$ (9,084,141)$ (6,814,265)$
General Revenues and Other Changes in Net Position
General Revenues
Governmental activities
Taxes
Property taxes 7,756,543$ 8,416,466$ 8,760,482$ 8,730,979$
Tax increments 1,673,394 1,835,749 1,262,598 1,408,256
Franchise taxes 444,898 441,133 438,744 430,494
Grants and contributions not
restricted to specific programs 600,221 666,543 755,762 79,529
Unrestricted investment earnings 1,698,749 992,673 723,565 337,312
Gain on sale of capital assets - - - 22,930
Miscellaneous 352,564 96,911 146,680 -
Transfers - (30,067) - 91,129
Total governmental activities general revenues 12,526,369 12,419,408 12,087,831 11,100,629
Business-type activities
Unrestricted investment earnings 49,416 37,481 27,234 17,400
Transfers - 30,067 - (91,129)
Total business-type activities general revenues 49,416 67,548 27,234 (73,729)
Total primary government 12,575,785$ 12,486,956$ 12,115,065$ 11,026,900$
Change in Net Position
Governmental activities 3,530,742$ 2,597,797$ 2,416,915$ 2,727,732$
Business-type activities 446,792 787,801 614,009 1,484,903
Total primary government 3,977,534$ 3,385,598$ 3,030,924$ 4,212,635$
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.
-132-
2011
(Restated)2012 2013 2014 2015 2016
(8,478,952)$ (8,861,303)$ (5,797,950)$ (12,044,001)$ (12,813,653)$ (13,981,894)$
396,577 646,886 884,021 155,042 (417,676) 2,502,502
(8,082,375)$ (8,214,417)$ (4,913,929)$ (11,888,959)$ (13,231,329)$ (11,479,392)$
8,784,948$ 9,129,247$ 9,554,629$ 9,732,776$ 10,131,759$ 10,843,702$
1,400,163 1,343,248 511,924 537,871 430,879 492,584
439,795 440,149 438,834 438,541 442,556 447,248
87,206 47,662 49,005 179,537 600,030 633,056
745,484 429,595 198,658 324,498 331,417 377,960
13,568 69,321 37,201 - - -
- - - - - -
(2,163,781) 68,971 (317,987) 114,000 68,204 121,800
9,307,383 11,528,193 10,472,264 11,327,223 12,004,845 12,916,350
71,089 57,384 7,508 31,714 35,700 44,708
2,163,781 (68,971) 317,987 (114,000) (68,204) (121,800)
2,234,870 (11,587) 325,495 (82,286) (32,504) (77,092)
11,542,253$ 11,516,606$ 10,797,759$ 11,244,937$ 11,972,341$ 12,839,258$
828,431$ 2,666,890$ 4,674,314$ (716,778)$ (808,808)$ (1,065,544)$
2,631,447 635,299 1,209,516 72,756 (450,180) 2,425,410
3,459,878$ 3,302,189$ 5,883,830$ (644,022)$ (1,258,988)$ 1,359,866$
Fiscal Year
-133-
THIS PAGE IS LEFT BLANK
INTENTIONALLY
-134-
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
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
2016 10,843,702 492,584 447,248 11,783,534
-135-
CITY OF NEW HOPE, MINNESOTA
STATISTICAL SECTION (UNAUDITED)
FUND BALANCES OF GOVERNMENTAL FUNDS
LAST TEN FISCAL YEARS
(modified accrual basis of accounting)
2007 2008 2009 2010
General fund
Reserved -$ -$ -$ 63,753$
Unreserved 4,249,604 3,952,477 4,354,351 4,527,847
Nonspendable - - - -
Unassigned - - - -
Total general fund 4,249,604$ 3,952,477$ 4,354,351$ 4,591,600$
All other governmental funds
Reserved -$ 2,433,162$ 4,699,636$ 9,043,337$
Unreserved, reported in
Special Revenue funds 4,748,023 2,993,986 3,266,399 3,129,062
Debt Service funds 5,992,108 6,571,884 6,450,295 -
Capital Project funds 6,569,745 5,962,599 5,317,588 9,771,932
Restricted - - - -
Committed - - - -
Assigned - - - -
Unassigned - - - -
Total all other governmental funds 17,309,876$ 17,961,631$ 19,733,918$ 21,944,331$
Total all governmental funds 21,559,480$ 21,914,108$ 24,088,269$ 26,535,931$
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
-136-
2011
(Restated)2012 2013 2014 2015 2016
-$ -$ -$ -$ -$ -$
- - - - - -
14,366 14,925 15,484 16,005 16,765 18,242
4,920,846 5,080,812 5,567,933 5,805,289 6,063,647 6,255,436
4,935,212$ 5,095,737$ 5,583,417$ 5,821,294$ 6,080,412$ 6,273,678$
-$ -$ -$ -$ -$ -$
- - - - - -
- - - - - -
- - - - - -
6,114,114 5,657,606 5,550,819 5,687,949 8,069,238 7,772,782
4,666,447 5,165,192 4,511,073 4,771,304 5,431,288 5,397,075
6,877,641 6,533,868 8,204,338 7,839,792 5,496,484 4,958,094
- - - (134,792) (226,356) (3,015,315)
17,658,202$ 17,356,666$ 18,266,230$ 18,164,253$ 18,770,654$ 15,112,636$
22,593,414$ 22,452,403$ 23,849,647$ 23,985,547$ 24,851,066$ 21,386,314$
Fiscal Year
-137-
CITY OF NEW HOPE, MINNESOTA
STATISTICAL SECTION (UNAUDITED)
CHANGES IN FUND BALANCES OF GOVERNMENTAL FUNDS
LAST TEN FISCAL YEARS
(modified accrual basis of accounting)
2007 2008 2009 2010
Revenues
Property taxes 9,386,469$ 9,910,002$ 9,898,968$ 8,694,245$
Tax increments - - - 1,408,256
Franchise taxes 444,898 441,133 438,744 430,494
Licenses and permits 332,351 415,012 226,303 236,378
Intergovernmental 970,543 1,038,461 1,401,010 1,765,220
Charges for services 1,149,810 1,125,819 1,166,302 1,369,904
Fines and forfeitures 247,794 285,255 236,173 238,961
Special assessments 326,909 203,199 157,581 258,392
Investment earnings - - - 393,913
Miscellaneous 1,747,196 906,365 791,039 87,607
Total revenues 14,605,970 14,325,246 14,316,120 14,883,370
Expenditures
General government 1,959,594 1,949,002 1,726,566 1,883,729
Public safety 5,281,122 5,880,729 5,933,364 5,791,511
Public works 883,268 830,900 740,014 989,734
Culture and recreation 1,638,354 1,687,171 1,698,807 1,599,381
Economic development - - - 192,431
Capital outlay 1,769,589 2,444,825 1,137,776 2,605,724
Debt service
Principal 1,525,000 820,000 885,000 515,000
Interest 357,654 357,991 273,100 273,054
Bond issuance costs - - - -
Total expenditures 13,414,581 13,970,618 12,394,627 13,850,564
Excess (deficiency) of revenues
over (under) expenditures 1,191,389 354,628 1,921,493 1,032,806
Other financing sources (uses)
Transfers in - 653,787 1,236,793 2,596,321
Sales of capital assets 2,000 - - 1,954
Bonds issued - - - 1,245,000
Premium on bonds issued - - - 16,173
Refunding bonds issued - - - -
Principal payments to refunded bond escrow agent - - - -
Transfers out - (653,787) (984,125) (2,444,592)
Total other financing
sources (uses)2,000 - 252,668 1,414,856
Net change in fund balances 1,193,389$ 354,628$ 2,174,161$ 2,447,662$
Debt service as a percentage of
Noncapital expenditures 11.2%15.1%9.7%9.8%
Fiscal Year
-138-
2011
(Restated)2012 2013 2014 2015 2016
8,767,959$ 9,199,381$ 9,531,663$ 9,718,800$ 10,145,204$ 10,868,985$
1,400,163 1,343,248 511,924 537,871 430,879 492,584
439,795 440,149 438,834 438,541 442,556 447,248
359,530 238,943 273,117 353,973 389,957 466,548
1,599,253 858,816 4,463,113 818,825 1,359,511 2,063,546
1,544,369 1,557,898 1,585,964 1,663,053 1,601,081 1,571,798
255,329 283,233 239,201 215,585 237,591 191,960
153,835 305,818 178,335 98,617 38,417 173,158
548,548 307,032 178,217 248,013 274,116 304,252
115,183 80,073 111,443 129,980 202,057 42,103
15,183,964 14,614,591 17,511,811 14,223,258 15,121,369 16,622,182
1,560,511 1,567,301 1,571,701 1,668,474 1,688,752 1,872,436
5,933,201 5,946,209 5,967,599 6,397,860 6,866,105 7,168,102
1,079,884 1,192,760 1,254,201 1,225,551 1,328,371 1,606,369
1,560,486 1,599,041 1,613,518 1,761,961 1,853,741 1,938,131
289,650 304,064 582,621 298,825 498,479 588,167
5,263,935 7,685,819 4,239,938 3,000,518 8,204,694 8,220,964
1,005,000 330,000 340,000 350,000 405,000 415,000
247,973 270,613 306,462 212,025 131,530 257,661
93,820 104,351 - 2,200 114,607 58,188
17,034,460 19,000,158 15,876,040 14,917,414 21,091,279 22,125,018
(1,850,496) (4,385,567) 1,635,771 (694,156) (5,969,910) (5,502,836)
2,477,195 936,188 360,427 669,461 3,209,226 1,630,270
- - 1,460 4,055,382 - -
- - - - - 2,824,075
- 54,006 - - 171,339 107,553
- 4,025,000 - - 6,470,000 -
- - - (3,780,000) - -
(4,569,216) (770,638) (600,414) (477,461) (3,015,226) (1,426,570)
(2,092,021) 4,244,556 (238,527) 467,382 6,835,339 3,135,328
(3,942,517)$ (141,011)$ 1,397,244$ (226,774)$ 865,429$ (2,367,508)$
6.4%4.1%5.6%4.5%3.5%4.6%
Fiscal Year
-139-
THIS PAGE IS LEFT BLANK
INTENTIONALLY
-140-
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
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
2016 10,868,985 492,584 447,248 11,808,817
-141-
CITY OF NEW HOPE, MINNESOTA
STATISTICAL SECTION (UNAUDITED)
TAX CAPACITY, MARKET VALUE AND ESTIMATED ACTUAL VALUE OF TAXABLE PROPERTY
LAST TEN FISCAL YEARS
(Shown by year of tax collectability)
2007 2008 2009 2010
Taxable market value
Real property 1,618,178,200$
Personal property 7,624,400
Total taxable market value 1,625,802,600$
Estimated actual value of taxable property 1,692,471,900$ 1,750,807,800$ 1,732,235,700$ 1,629,433,100$
Taxable market value as a percentage of
estimated actual value 99.78 %
Tax capacity
Real property 20,386,553$ 21,248,319$ 21,095,335$ 19,864,103$
Personal property 172,470 151,679 146,456 148,346
Subtotal 20,559,023 21,399,998 21,241,791 20,012,449
Less: tax increment (1,471,827) (1,646,615) (1,365,233) (1,181,390)
Less: contribution to fiscal disparities (2,035,088) (2,292,166) (2,518,620) (2,596,468)
Add: distribution from fiscal disparities 2,806,702 3,398,192 3,821,605 3,946,315
Net tax capacity 19,858,810$ 20,859,409$ 21,179,543$ 20,180,906$
Tax levies
Revenue 9,053,443$
Bonds and interest 39,268
Total 9,092,711$
Tax capacity rate
Revenue 45.542 %
Bonds and interest 0.199
Sewer district 0.273
Total direct tax rate 42.346 %41.995 %41.342 %46.014 %
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.
Fiscal Year
-142-
2011 2012 2013 2014 2015 2016
1,492,408,000$ 1,321,463,913$ 1,214,204,483$ 1,224,417,514$ 1,323,173,828$ 1,419,351,117$
8,162,100 8,515,600 9,657,700 10,849,800 11,343,900 11,588,000
1,500,570,100$ 1,329,979,513$ 1,223,862,183$ 1,235,267,314$ 1,334,517,728$ 1,430,939,117$
1,504,929,000$ 1,438,796,300$ 1,336,539,900$ 1,346,449,200$ 1,440,652,000$ 1,534,397,300$
99.71 %92.44 %91.57 %91.74 %92.63 %93.26 %
18,462,796$ 16,686,170$ 15,476,014$ 15,454,712$ 16,638,481$ 17,898,058$
159,492 165,812 188,654 211,746 221,628 226,510
18,622,288 16,851,982 15,664,668 15,666,458 16,860,109 18,124,568
(1,044,830) (944,560) (366,752) (377,138) (338,715) (362,633)
(2,466,459) (2,380,423) (2,255,476) (2,154,731) (2,144,256) (2,277,639)
3,896,651 3,605,075 3,448,346 3,437,911 3,505,922 3,437,652
19,007,650$ 17,132,074$ 16,490,786$ 16,572,500$ 17,883,060$ 18,921,948$
9,036,625$ 9,066,928$ 9,406,483$ 9,556,483$ 9,938,265$ 10,617,194$
192,105 161,802 164,325 161,487 163,902 195,819
9,228,730$ 9,228,730$ 9,570,808$ 9,717,970$ 10,102,167$ 10,813,013$
47.916 %53.842 %57.802 %57.622 %55.073 %56.364 %
1.025 0.967 1.010 0.974 0.905 1.041
0.308 0.387 - - - -
49.249 %55.196 %58.812 %58.596 %55.978 %57.405 %
Fiscal Year
-143-
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
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 55.196
2013 57.802 1.010 - 58.812
2014 57.622 0.974 - 58.596
2015 55.073 0.905 - 55.978
2016 56.364 1.041 - 57.405
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
-144-
County No. 281 Other Total
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 10.422 146.383
49.461 32.347 10.933 151.553
49.959 34.777 11.307 154.639
46.398 33.226 10.561 146.163
45.356 33.833 10.432 147.026
Overlapping Rates
School
District
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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 0.97 %
Paddock Property Ltd. Partnership 160,770 2 0.89
Allen Group, LLC 158,250 3 0.87
St. Therese Home, Inc.155,906 4 0.86
Colfin Industrial Holdings 151,070 5 0.83
STNL (New Hope), LLC 148,870 6 0.82
OMG Healthcare Investors 135,888 7 0.75
New Hope Property, LLC 135,000 8 0.74
Winnetka Mall, LLC 127,470 9 0.70
GLP US Management, LLC 125,910 10 0.69
Geneva Management Service, LLC - - -
Minn Masonic Home North Ridge - - -
New Hope Distribution Center, LLC - - -
Welsh Navarre MN, LLC - - -
Lang Nelson Association - - -
New Hope / US Swim Partnership - - -
Totals 1,474,324$ 8.12 %
Source: Hennepin County Auditor/Treasurer Department
(1)Information for nine years ago was not available, 2008 was the first year available.
Tax Capacity
2016
Percent
of Total
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Tax
Capacity Rank
136,450$ 8 0.64 %
165,250 2 0.78
- - -
153,375 3 0.72
- - -
- - -
- - -
- - -
136,750 7 0.64
- - -
199,250 1 0.94
152,275 4 0.72
142,330 5 0.67
139,250 6 0.66
132,188 9 0.62
129,250 10 0.61
1,486,368$ 7.00 %
Tax Capacity
2008
Percent
of Total
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THIS PAGE IS LEFT BLANK
INTENTIONALLY
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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
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 98.80 109,487 9,092,711 100.00
2011 9,228,730 9,063,615 98.21 165,115 9,228,730 100.00
2012 9,228,730 9,102,355 98.63 122,353 9,224,708 99.96
2013 9,570,808 9,429,858 98.53 136,845 9,566,703 99.96
2014 9,717,970 9,619,447 98.99 83,501 9,702,948 99.85
2015 10,102,167 10,017,500 99.16 57,890 10,075,390 99.73
2016 10,813,013 10,756,992 99.48 - 10,756,992 99.48
Source: Hennepin County Auditor/Treasurer Department
(1)Includes state paid property tax credits.
Collected to Levy
Percent
Percentage of Total
of Levy Collections
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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
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
2016 5,682,679 - 7,968,655
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 157 for personal income and population data.
Governmental Activities
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Lease General Tax Total
Revenue Obligation Revenue Increment Primary Per
Bonds Bonds Bonds Bonds Government Capita
-$ -$ 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 1.49 953
3,505,000 3,934,522 1,950,071 1,586,242 24,627,169 1.78 1,160
Income
of Personal
Percentage
Business-type Activities
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CITY OF NEW HOPE, MINNESOTA
STATISTICAL SECTION (UNAUDITED)
RATIOS OF GENERAL BONDED DEBT OUTSTANDING
LAST TEN FISCAL YEARS
Less
Amounts
General Available in Net
Fiscal Obligation Debt Service Bonded Per
Year Bonds Funds Debt Capita
2007 8,120,000$ 5,992,108$ 2,127,892$ 0.163 %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 0.772 489
2016 13,651,334 1,048,498 12,602,836 0.821 594
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 157 for population data.
Percentage
See Tax Capacity, Market Value and Estimated Actual Value of Taxable Property on page 142 for property value data.
of Estimated
Actual Value
of Taxable
Property
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CITY OF NEW HOPE, MINNESOTA
STATISTICAL SECTION (UNAUDITED)
COMPUTATION OF DIRECT AND OVERLAPPING DEBT
DECEMBER 31, 2016
City's
Outstanding Share
Debt of Debt
Direct debt
City of New Hope (1)13,651,334$ 100.00 %13,651,334$
Overlapping debt
Hennepin County 1,151,785,000$ 1.14 %13,130,349$
Independent School District #281, Robbinsdale 217,763,960 19.60 42,681,736
Metropolitan Council 1,445,126,482 0.53 7,659,170
Hennepin Region RR Authority 33,145,000 1.56 517,062
Three Rivers Park District 70,475,000 1.56 1,099,410
Total overlapping debt 2,918,295,442$ 2.23 %65,087,728$
Total direct and overlapping debt 2,931,946,776$ 2.69 %78,739,062$
(1)Excludes debt payable from tax increment revenue and enterprise revenue.
Note: Overlapping governments are those that coincide, at least in part, with the geographic boundaries of the City. This
schedule estimates the portion of the outstanding debt of those overlapping governments that is borne by the residents and
businesses of the City. This process recognized that, when considering the government's ability to issue and repay long-term
debt, the entire debt burden borne by the residents and businesses should be taken into account. However, this does not
imply that every taxpayer is a resident, and therefore responsible for repaying the debt, of each overlapping government.
District *
Percentage
Applicable to
Source : Assessed value data used to estimate applicable percentages and outstanding debt data for overlapping entities was provided
by Hennepin County.
*The percentage of overlapping debt applicable is estimated using taxable market property values. Applicable percentages were
estimated by determining the portion of the county's taxable market value that is within the City's boundaries and dividing it by the
county's total taxable market value.
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CITY OF NEW HOPE, MINNESOTA
STATISTICAL SECTION (UNAUDITED)
LEGAL DEBT MARGIN INFORMATION
LAST TEN FISCAL YEARS
2007 2008 2009 2010
Debt limit 33,849,438$ 52,524,234$ 51,967,071$ 48,774,078$
Total net debt applicable to limit 108,094 72,562 37,561 1,246,878
Legal debt margin 33,741,344$ 52,451,672$ 51,929,510$ 47,527,200$
Total net debt applicable to the limit
as a percentage of debt limit 0.32%0.14%0.07%2.56%
Note: Under state law, the City's outstanding general obligation debt should not exceed 3 percent of the market value of
taxable property. Prior to 2008, state law provided that general obligation debt should not exceed 2 percent. By law, the
general obligation debt subject to the limitation may be offset by amounts set aside for the extinguishment of those obligations.
Fiscal Year
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2011 2012 2013 2014 2015 2016
45,017,103$ 39,899,385$ 36,715,865$ 37,058,019$ 40,035,532$ 42,928,174$
1,072,678 970,908 839,948 696,627 2,719,528 5,497,493
43,944,425$ 38,928,477$ 35,875,917$ 36,361,392$ 37,316,004$ 37,430,681$
2.38%2.43%2.29%1.88%6.79%12.81%
Taxable market value 1,430,939,117$
Debt limit (3 percent of market value)42,928,174$
Debt applicable to limit
General obligation bonds 5,682,679
Less: amount available in
debt service funds (185,186)
Total net debt applicable to limit 5,497,493
Legal debt margin 37,430,681$
Fiscal Year
Legal Debt Margin Calculation for Fiscal Year 2016
-155-
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
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
2016 8,738,270 6,629,232 2,109,038 202,000 172,262 563.52
(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
-156-
Per Capita Total
Fiscal Personal Personal Median School
Year Population (1)Income (2)Income (3)Age (4)Enrollment (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 21,225 63,901 1,356,298,725 39.4 12,313 2.8
2016 21,225 65,231 1,384,527,975 39.4 12,404 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)
-157-
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
Hy-Vee 627 5 6.05
Perrigo Company 333 6 3.21
Coborn's Delivers 240 7 2.32
Liberty Diversified International 200 8 1.93
Dakota Growers Pasta 150 9 1.45
Waymouth Farms, Inc.150 10 1.45
Navarre Corporation - -
Paddock Labratories - -
Simon Deliveries - -
Parker - Hannifin Oildyne Division - -
InnoFlex Corporation (I-Corp)- -
Total employment for top 10 employers 5,852 56.49 %
Total City employment 10,360
Source: Minnesota Department of Employment and Economic Development.
(1)Information for nine years ago was not available, 2008 was the first year available.
PRINCIPAL EMPLOYERS
CURRENT YEAR AND NINE YEARS AGO (1)
Employer Employment
2016
Percentage
of Total City
-158-
Employees Rank
- - %
- -
900 1 8.10
539 2 4.85
- -
- -
- -
244 6 2.20
184 7 1.66
170 9 1.53
500 3 4.50
277 4 2.49
250 5 2.25
173 8 1.56
149 10 1.34
3,386 30.47 %
11,112
Employment
2008
Percentage
of Total City
-159-
CITY OF NEW HOPE, MINNESOTA
FULL-TIME EQUIVALENT CITY GOVERNMENT EMPLOYEES BY FUNCTION
LAST TEN FISCAL YEARS
2007 2008 2009 2010
General government 21 18 18 15
Public safety
Police
Officers 30 31 31 30
Civilians 7 7 7 7
Public works 23 23 21 22
Culture and recreation 9 8 8 8
Total 90 87 85 82
Source: Various City departments.
Function
-160-
2011 2012 2013 2014 2015 2016
15 15 16 14 13 13
31 30 31 33 35 33
6 7 7 7 9 9
24 24 24 24 23 24
7 6 7 7 7 8
83 82 85 85 87 87
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CITY OF NEW HOPE, MINNESOTA
OPERATING INDICATORS BY FUNCTION
LAST NINE FISCAL YEARS
2008 2009 2010 2011 2012
Function
Public works
Street resurfacing (miles)2 2 2 4 -
Potholes repaired 150 349 734 648 687
Culture and recreation
Program registration - adults 3,874 3,313 3,796 5,271 5,598
Program registration - youth 5,747 6,360 5,287 5,323 7,442
Attendance at sponsored events 140,600 139,318 137,199 146,305 148,966
Golf Course
Rounds of golf at the Municipal course 22,900 23,917 21,686 18,788 19,568
Ice Arena
Hours of ice time rental 3,905 4,027 3,980 3,903 3,558
Water
Water main breaks 33 37 19 32 26
Average daily consumption (thousands of gallons)2,003 1,921 1,746 1,712 1,828
Sewer
Average daily treatment (thousands of gallons)2,360 1,740 1,895 2,253 2,189
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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2013 2014 2015 2016
- - 12 3
600 1,330 2,882 3,025
4,565 3,121 2,746 3,343
5,924 5,734 5,815 6,043
144,000 122,478 124,777 127,865
16,782 16,431 18,175 20,375
3,739 3,734 3,683 3,567
30 27 21 19
1,682 1,571 1,559 1,588
1,500 2,200 1,670 1,800
-163-
CITY OF NEW HOPE, MINNESOTA
CAPITAL ASSET STATISTICS BY FUNCTION
LAST TEN FISCAL YEARS
2007 2008 2009 2010
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
-164-
2011 2012 2013 2014 2015 2016
1 1 1 1 1 1
3 3 3 3 3 3
64.0 64.0 64.0 64.0 64.0 64.5
8.5 8.5 8.5 8.5 8.5 8.5
26.4 26.4 26.4 26.4 26.4 27.0
580.0 580.0 580.0 580.0 580.0 619.0
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 15
63 63 63 63 63 64
690 690 690 690 690 712
21,000,000 21,000,000 21,000,000 21,000,000 21,000,000 21,000,000
74 74 74 74 74 75
56 56 56 56 56 56
1 1 1 1 1 1
1 1 1 1 1 1
-165-