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<br />CITY OF ARDEN HILLS, MINNESOTA
<br />NOTES TO FINANCIAL STATEMENTS
<br />DECEMBER 31, 1998
<br />
<br />Note 5: OTHER INFORMATION - CONTINUED
<br />
<br />B. Segment Information for Proprietary Funds
<br />
<br />The City provides services which are accounted for in the Enterprise Funds. The segment information for these
<br />Enterprise Funds for the year ended December 31, 1998 is as follows:
<br />
<br /> Surface
<br /> Water
<br /> Water Sewer Recvcling Manal!ement Total
<br /> Operating revenue $ 1,043,989 $ 1,091,586 $ 71,394 $ 185,084 $ 2,392,053
<br /> Depreciation expense 75,299 67,459 10,015 152,773
<br /> Operating income 142,1l7 85,728 2,646 16,676 247,167
<br /> Net income before
<br /> transfers 206,166 163,934 4,591 23,800 398,491
<br /> Operating transfers out (74,122) (74,122)
<br /> Acquisition of fixed
<br /> assets (641) 30 (611)
<br /> Net working capital 1,112,370 1,483,315 44,616 153,221 2,793,522
<br /> Total assets 5,862,474 4,290,186 97 ,320 188,285 10,438,265
<br /> Total equity 5,723,405 4,261,964 44,6]6 185,601 10,215,586
<br />C. Water Tower Funding
<br />
<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 fmancing 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 fmancing for these projects from the Water
<br />Enterprise Fund. To date, $1,057,026 has been transferred to the PIR from the Water Fund.
<br />
<br />D. Legal Debt Margin
<br />
<br />The City's statutory debt limit is computed as two percent ofthe taxable market value of property within the
<br />City. Long-term debt issued and fmanced partially or entirely by special assessments or the net revenues of
<br />enterprise fund operations is excluded from the debt limit computation. There is no outstanding debt at year end
<br />which is applied against the statutory debt limit.
<br />
<br />Note 6: COMMITTMENTS
<br />
<br />Ice Arena Financing
<br />
<br />The City, along with three other cities and Ramsey County, entered into an agreement January I, 1997 with the
<br />Minnesota Amateur Sports Commission (MASC) to provide financing of a four sheet ice arena. The agreement
<br />provides for rental income to cover principal, interest and operating expenses. In the case of default, each City will be
<br />responsible for a specific portion of the debt. Arden Hills' percentage is 15.5% of one of the four sheets and the
<br />amount ofthe debt will not exceed $9,000,000 for all four sheets in the complex. No expenditures were incurred for
<br />this commitment in 1998.
<br />
<br />Construction Contracts
<br />
<br />The City has commitments for two construction contracts at December 31, 1998. Any amount earned on the contracts
<br />has been accrued in the appropriate fund. The unearned amount on both contracts totaled $112,370 at year end.
<br />
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