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CITY OF ST. CHARLES Financial Summary - 2006

CITY OF ST. CHARLES Financial Summary - 2006. Audit. Audit Opinion Provides reasonable, but not absolute, assurance that financials are free of material misstatement Unqualified “Clean” opinion in 2006 Financial Statements

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CITY OF ST. CHARLES Financial Summary - 2006

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  1. CITY OF ST. CHARLESFinancial Summary - 2006

  2. Audit • Audit Opinion • Provides reasonable, but not absolute, assurance that financials are free of material misstatement • Unqualified “Clean” opinion in 2006 • Financial Statements • Smith Schafer reviewed the results of the audit and the financial statements with the Mayor, Deputy Clerk and the Accountant on April 13 • Management’s Discussion and Analysis (MD&A) was prepared by the City • Minnesota Legal Compliance • No Exceptions • Single Audit • None required in 2006 • Management Letter • Limited personnel – Limit City’s ability to segregate accounting duties

  3. Revenues Governmental Funds

  4. General Property Tax Levy • General tax levy revenues represented 27% of total governmental revenues in 2006 • Tax collections $504,402 Market value credit 81,084 Total 2006 $585,486 $585,486 $543,826 $512,450

  5. Tax Increment Revenues • Total TIF collections in 2006 were $141,491 • TIF debt service payments and advance repayment requirements are approximately $90,000 annually • TIF collections are impacted by County valuations and the commercial property tax rates set by the State

  6. LGA and HACA Revenues • Local government aid (LGA) & Homestead Aid Credit (HACA) are based on State formulas • LGA represented 29% of governmental revenues in 2006 • LGA increased by $73,587 (13%) from 2005 to 2006 • HACA was eliminated in 2002

  7. Governmental Fund Revenues

  8. Property Taxes and State Aid 41% 44% 41% 43% 41% 42% 34% 40%

  9. Expenditures Governmental Funds

  10. General Governmental Expenditures • Includes mayor and council, city hall, accounting, assessor, elections, advertising, building inspections and celebration costs • Increase of $48,691 in 2006 was due to a lack of full time staff in 2005. • Higher costs of building inspections beginning 2001

  11. Public Safety Expenditures • Includes police department, fire protection, ambulance and the emergency management services fund • Totaled $701,179 in 2006, including $210,915 in capital outlay • Increase in 2006 due to purchase of Volk property and ambulance

  12. Public Safety Expenditures • Police protection expenditures increased by $37,240 in 2006 • Ambulance expenditures include $49,748 of capital outlay in 2006 related to the purchase of an ambulance • Fire expenditures of $71,562 in 2006 were supported by township contracts of $36,174 and other revenues of $20,055 (City transfer in of $46,559 – not included in chart)

  13. Public Works • Salaries/benefits, repairs and maintenance, supplies, fuel, and insurance • Expenditures increased by $43,571 in 2006 due to the addition of one full time employee and full time administrative staff

  14. Parks and Recreation • Recreation programs, parks, swimming pool, forestry and the senior center (including capital project fund expenditures) • Expenditures totaled $346,074 in 2006 an increase of $27,261 from 2005 due to an increase in salaries and repairs to the swimming pool boiler

  15. Park and Recreation Expenditures • Park and recreation expenditures in excess of program revenues are supported by the City’s general revenues including property taxes and local government aid

  16. Library Expenditures • Salaries and benefits, books, supplies, insurance, utilities, printing, etc… (including capital project fund expenditures) • Totaled $133,585 in 2006 • Received library aid during 2006 from Winona County and Olmsted County totaling $26,950 and a grant from the state of $63,600 • Excludes capital outlay related to the addition to the library in 2003-2005 totaling $676,333

  17. Economic Development Expenditures • Economic development expenditures in 2006 included $29,000 in revolving loans and professional services of $20,519 • 2002 included the $126,000 loan to HBC (mortgage on old City Hall building)

  18. Governmental Fund Expenditures

  19. Reserves

  20. General Fund - Reserves • Unreserved General Fund balance as a % of expenditures • 2006 30% • 2005 68% • 2004 60% • 2003 62% • 2002 65% • 2001 62% • 2000 69% • 1999 71% • 1998 80% • Decrease in fund balance due to transfer for: Library $136,813 EMS 32,000 TIF 63,431 Parkland Dedication 55,250

  21. Economic Development Fund - Fund Balance • Provides economic development loans to local businesses • Outstanding principal receivable on economic development loans at 12/31/06 $242,920 • Borrowed $126,000 from the Electric Fund for Loan to HBC in 2002

  22. Library Fund - Fund Balance • Deficit fund balance in 2004 and 2005 resulting from construction was eliminated in 2006 with transfers from the General Fund of $136,813 and Capital Improvement Fund of $240,000 • Pledges receivable totaled $4,168 at 12/31/06

  23. Volunteer Fire Fund - Fund Balance • Funds received in 2006: • City $46,559 • Townships 36,174 • Fire calls 6,461 • Interest 4,797 • Donations 8,797 • Builds fund balance in anticipation of equipment needs • Transferred $64,000 to the EMS fund for the purchase of a building

  24. Advertising Fund - Fund Balance • Funds used for City promotion/Fireworks • Levied $8,000 in the Advertising fund and transferred in $12,850 from the Library Fund in 2006

  25. Celebration Fund - Fund Balance • Funds used for annual flowerfest celebration • Revenues exceeded expenditures by $1,542 during 2006 • Levied $3,000 in the Celebration fund • Levied $15,000 in the Celebration fund in 2007

  26. Ambulance Fund - Fund Balance • Ambulance revenues increased to $143,306 in 2006 from $123,746 in 2005 • New capital lease of ambulance vehicle in 2006 totaling $48,300 • Transferred $64,000 to the EMS fund for the purchase of a building

  27. Emergency Management Services Fund - Fund Balance • New fund established in 2006 to account for the purchase of the Volk property • The plan is to transfer $150,000 into this fund annually through 2012

  28. Debt Service

  29. General Obligation Bonds • GO Bonds Outstanding: • Water Impr Bond of 1983 • Street Impr Bond of 2005 • Supported by property taxes and fund balance reserve of $202,912

  30. Tax Increment Bonds • TIF Bonds are supported by increments on TIF property • First principal payment on TIF Refunding Bond of 2004 was made as due in 2006 • TIF Bonds of 1996 were paid in full in 2005 with proceeds of 2004 Refunding Bond proceeds

  31. General Obligation Revenue Bonds • Revenue Bonds are supported by Utility Fund ratepayers. • GO Water and Sewer Revenue Bonds of 2002 balance at 12/31/06 was $805,000 • GO Water and Sewer Revenue Bonds of 2004 balance at 12/31/06 was $1,005,000 • GO Electric Revenue Bonds of 1997 balance at 12/31/06 was $30,000 • GO Electric Revenue Bonds of 2004 balance at 12/31/06 was $3,435,000

  32. Other Long-Term Debt • Fire Truck Loan payments due through 2013 • New Ambulance Capital Lease in 2006

  33. 5 Year Debt Service Requirements • Includes both principal and interest

  34. Capital Projects

  35. Capital Projects Funds - Expenditures • Major capital improvements in 2006 totaled $357,309 and consisted of: • Skate park $30,000 • St. Charles welcome sign $15,556 • Street project $76,306 • Disc golf course $6,019 • Playground equipment $52,863 • Park bridges $35,978 • Bike trail $45,040 • Police car $20,774

  36. Capital Improvement Fund - Fund Balance • Funded through property taxes, donations, and interest • Transferred $240,000 to the Library fund

  37. TIF Capital Improvement Fund - Fund Balance • TIF #5, borrowed from utilities and capital improvements funds for White Water Industrial Park infrastructure • TIF #3 (Whitewater Apts.) has a $178,829 deficit • Expected TIF #5 (Whitewater Park) increment collections increased to $26,460 in 2006 from $22,528 in 2005 • TIF #6 (Mike’s Food Center) established in 2005

  38. Operational Trends Utility Funds

  39. Electric Fund • Electric service is supported by ratepayers • Transfers out to the City General fund of $130,000 in 2006 • Purchase power decrease in 2005 is due in part to the elimination of the demand charge

  40. Electric Fund • Cash and investments totaled $244,377 at 12/31/06, while bonds outstanding totaled $3,465,000 • Issued bond in 2004 totaling $3,760,000 for the generation project and other electric system improvements • Advanced $126,000 to Economic Development for purchase of old City Hall Building in 2002

  41. Water Fund • Water service supported by ratepayers • Base rate increased from $9.00 to $9.45 per user • Revenues totaled $322,133 in 2006 • In lieu of tax payment to the City General fund of $20,000 in 2006

  42. Water Fund • Should develop cash reserves to be used for future capital replacement • In 2004 added $777,350 of the $1,205,000 GO Utility Revenue Bond of 2004 that was used for water tower improvements and water extensions • In 2002 added $349,800 of the $1,060,000 GO Utility Revenue Bonds of 2002 that was used for water construction costs

  43. Sewer Fund • Sewer service supported by ratepayers • Substantial expansion of the Dover Eyota Sanitary Sewer District is under consideration

  44. Sewer Fund • Should develop cash reserves to be used for future capital replacement • Issued $427,650 of the $1,205,000 GO Utility Revenue Bonds of 2004 that was used for sewer extensions and sewer system improvements • Issued $710,200 of the $1,060,000 GO Utility Revenue Bonds of 2002 that was used for sewer construction costs

  45. Storm Water Fund • Fund was established in 2004 • Storm water activities are supported by ratepayers

  46. Storm Water Fund • Fees generated in 2004 were expended on capital assets • No debt at 12/31/06 • Cash balance of $72 at 12/31/06 • Improvements of $66,000, $35,000 contributed capital and $31,000 spent on storm water management projects

  47. Waste Management Fund-Fund Balance • Collected refuse fees of $128,394 and paid out $149,640 for hauling and other costs in 2006 • Uses excess revenue from hauling services for City cleanup day and maintenance of City compost site • Reclassified from a special revenue fund to an enterprise fund in 2006 • Reduction is the result of a catchup billing from Waste Management

  48. Summary • General Fund reserves equal 30% of annual general fund expenditures • Ambulance and Fire Funds are building reserves to finance equipment needs and meet debt service requirements • Capital Improvement fund balance of $244,011 • TIF #3 (Whitewater Apts.) owes TIF #2 (Central Business District) $178,829 • TIF #5 (Whitewater Park) Capital Improvement is repaying $153,000 in advances with tax increment receipts • All debt service funds are being adequately funded and all outstanding bonds are being paid on a timely basis • Utility Fund revenues continue to keep pace with rising costs, however cash reserves are minimal and substantial debt has been added since 2002.

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