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<br />CITY OF ARDEN HILLS, MINNESOTA
<br />NOTES TO FINANClAL STATEMENTS
<br />DECEMBER 31, 1999
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<br />OTHER INFORMATION - CONTINUED
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<br />Note 5:
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<br />B. Segment Information for Proprietary Funds
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<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, 1999 is as follows:
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<br /> Surface
<br /> Water
<br /> Water Sewer Recvcling Manal!ement Total
<br /> ()peratingrevenue $ 1,058,483 $ 1,055,880 $ 73,200 $ 191,470 $ 2,379,033
<br /> Depreciation expense 75,753 91,088 10,015 176,856
<br /> ()perating income 115,235 146,360 5,145 17,413 284,153
<br /> Net income before
<br /> transfers 159,371 192,786 7,124 26,087 385,368
<br /> ()perating transfers out (78,528 ) (78,528 )
<br /> Acquisition of fixed
<br /> assets (15,192) (243,492 ) (258,684 )
<br /> Net working capital 1,253,774 1,523,697 51,740 189,323 3,018,534
<br /> Total assets 5,981,777 4,489,730 111,292 214,893 10,797,692
<br /> Total equity 5,804,248 4,454,750 51,740 211,688 10,522,426
<br />C. Water Tower Funding
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<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, $1,135,554 has been transferred to the PIR from the Water Fund,
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<br />Legal Debt Margin
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<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 fmanced 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.
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<br />Note 6: COMMlTTMENTS
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<br />Ice Arena Financing
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<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 fmancing 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 of the debt will not exceed $9,000,000 for all four sheets in the complex. No expenditures were incurred for
<br />this commitment in 1999,
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<br />I Note 7: LAKE JOHANNA VOLUNTEER FIRE DEPARTMENT, INC.
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<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, The amount
<br />expended under the contract was $ I 69,994 in 1999,
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