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CITY OF ARDEN HILLS,MINNESOTA
<br /> NOTES TO FINANCIAL STATEMENTS
<br /> DECEMBER 31,2000
<br /> Note 5: OTHER INFORMATION-CONTINUED
<br /> B. Segment Information for Proprietary Funds
<br /> The City provides services which are accounted for in four enterprise funds. The segment information for these
<br /> enterprise funds for the year ended December 31,2000 is as follows:
<br /> Surface i
<br /> Water
<br /> Water Sewer Recycling Management Total
<br /> Operating revenue $ 1,291,282 $ 1,040,518 $ 73,699 $ 190,824 $ 2,596,323 ,
<br /> Depreciation expense 80,972 106,920 - 9,956 197,848
<br /> Operating income (66,573) (77,675) 2,049 142,566 367
<br /> '
<br /> Operating transfers out (57,349) - - (57,349)
<br /> Net income(loss) (46,971) 16,014 5,874 159,790 134,707
<br /> Acquisition of faced assets (176,566) (23,373) - - (199,939)
<br /> 199,939
<br /> Net working capital 1,111,209 1,623,258 57,614 359,069 3,151,150
<br /> Total assets 6,000,976 4,527,515 118,229 375,944 11,022,664
<br /> Total equity 5,757,277 4,470,764 57,614 371,478 10,657,133
<br /> C. Water Tower Funding '
<br /> As of December 31, 1989,the City had incurred expenditures of approximately$843,000 to build a water tower.
<br /> Also,in 1993 the City incurred additional expenditures of$300,775 for the repair of another water tower.
<br /> Interim financing was provided by the Permanent Improvement Revolving Capital Projects Fund(PIR)for both
<br /> projects. It is the intention of the City to provide permanent financing for these projects from the Water
<br /> Enterprise Fund. To date,the$1,250,252 has been transferred to the PIR from the Water fund.
<br /> D. Legal Debt Margin
<br /> The City's statutory debt limit is computed as two percent of the taxable market value of property within the City.
<br /> Long-term debt issued and financed partially or entirely by special assessments or the net revenues of enterprise
<br /> fund operations is excluded from the debt limit computation. There is no outstanding debt at year end which is
<br /> applied against the statutory debt limit.
<br /> The estimated market value of property within the City at December 31,2000 is$593,898,200 which also allows
<br /> a debt limit of$11,877,964. '
<br /> Note 6: COMMITTMENTS
<br /> Ice Arena Financing '
<br /> The City,along with three other cities and Ramsey County,entered into an agreement January 1, 1997 with the
<br /> Minnesota Amateur Sports Commission to provide financing of a four sheet ice arena. The agreement provides for
<br /> rental income to cover principal,interest and operating expenses. In the case of default,each City will be responsible '
<br /> for a specific portion of the debt. Arden Hills'percentage is 15.5%of one of the four sheets and the amount of the
<br /> debt will not exceed$9,000,000 for all four sheets in the complex. No expenditures were incurred for this commitment
<br /> in 2000.
<br /> Note 7: LAKE JOHANNA VOLUNTEER FIRE DEPARTMENT,INC.
<br /> The City receives fire protection under a contract with the Lake Johanna Volunteer Fire Department,Inc. The contract
<br /> calls for annual payments and expires December 31,2003 and allows renewal for three additional five-year periods.
<br /> The contract cost will be based on the budget submitted by the fire department and approved by the City. Capital costs
<br /> are billed separately in addition to the contract rate. The amount expended under the contract was$175,034 in 2000.
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