HomeMy WebLinkAboutAug-Sept Insert 2015Residents receive a variety of City services at an affordable price. The cost of City services in 2014
for the owner of a single-family home in Arden Hills with an assessor’s market value of $264,700
was $59.11 per month. Utilities remain competitively priced in 2014. The value received from City
services compared favorably to charges of
other monthly bills.
Property Tax-Supported Services
The checkbook shows how the monthly
cost of property tax-supported services was
divided among City departments.
Monthly Cost of Utilities
Based on an average usage of 4,800 gallons
per month, monthly cost of utilities for a
home in Arden Hills was $58.92 in 2014
(Arden Hills bills on a quarterly basis).
These services include water, sewer, storm
water, and recycling.
Capital Fund
Check Register
Description of Transaction Balance
Public Safety Public Safety Public Safety Public Safety $24.72$24.72 $24.72$24.72
Community ServicesCommunity ServicesCommunity ServicesCommunity Services $14.31$14.31 $14.31$14.31
Parks and Recreation Parks and Recreation Parks and Recreation Parks and Recreation $8.77$8.77 $8.77$8.77
Public WorksPublic WorksPublic WorksPublic Works $10.74$10.74 $10.74$10.74
Capital Capital Capital Capital $ 0.00$ 0.00 $ 0.00$ 0.00
Reserves Reserves Reserves Reserves $ 0.0.0$ 0.0.0 $ 0.0.0$ 0.0.0
About this Report
The City of Arden Hills re-
ports financial year-end results
in the Comprehensive Annual
Financial Report (CAFR). The
Popular Annual Financial Re-
port (PAFR) is an unaudited
report that summarizes the
most significant data from the
2014 CAFR, and is consistent
with Generally Accepted Ac-
counting Principles. The re-
port reflects the net tax cost
by service expenditure, devel-
oped by crediting related reve-
nues against appropriate ex-
penditures and allocating local
taxes against the remaining
balance.
For a complete review of the
City’s financial position for
2014, consult the 2014 CAFR
available on the City’s website
at www.cityofardenhills.org,
or from the Finance Depart-
ment at 651.792.7816.
These funds consist of utility
services provided to the com-
munity by the City such as
water, sewer, surface water
and recycling. A comprehen-
sive rate study was completed
in 2008. As a result of that
study, the City changed to a
tiered rate system effective
2009. Rates were also re-
viewed and updated in 2012.
Enterprise Fund
How Tax Dollars Buy City Services
Equipment/Building
Maintenance & Repair
City equipment and buildings are monitored
regularly and replaced/repaired when needed.
Transfers are made from various funds to fund
these expenditures.
Transfer from General &
Enterprise Funds — $280,765
Expenses — $317,588
Parks
This fund was established for park/trail acqui-
sition and development. Revenue for this
fund comes from developer park dedication
fees, contributions, state grants and investment
interest.
Revenues — $0
Expenses — $18,883
58.53
January 1, 2015
Homeowner
City Of Arden Hills
Fifty Five and 58/100————————————————
MONTHLY police, fire, street
maintenance, parks, programs etc.
Homeowner
City of Arden Hills, MN
YOUR BANK
Arden Hills Ranked Well Against Surrounding Areas
Your tax dol-
lar is divided
up into sev-
eral govern-
mental enti-
ties. Arden
Hills
collects 21
cents of every tax
dollar for City services. The
remaining portions are divided among
Ramsey County, the school district and other agencies.
Area Tax Rates 1
Dividing Up Your
Tax Dollar 1
General Fund 2
Internal Service
Funds 3
Long-Term Debt 3
Special Revenue
Funds 3
Capital Fund 4
Enterprise Funds 4
Monthly Bill 4
Inside this issue:
Popular Annual Financial Report
To The Community
For the fiscal year ended December 31, 2014
In a 2014 comparison of
nine communities in and
around Ramsey County,
the average cost of ser-
vices on a $264,700
homestead in terms of
property taxes and prop-
erty tax aids showed
Arden Hills ranking as
one of the lowest. A
$264,700 homestead in
Arden Hills paid $58.53
per month in property
taxes to the City.
Tax Rate Comparison
Dividing Up Your Property Tax Dollar
City of Arden Hills, Minnesota Page 1
7¢ Other agencies
49¢ Ramsey County
21¢ City of Arden Hills
23¢ School District
•The General Fund accounts
for revenues and expenses that
provide for basic operations of the
City, i.e., police and fire protec-
tion and street maintenance.
•Special Revenue Funds ac-
count for activities restricted to
specific purposes like economic
development.
•Debt Service Funds track
revenues and expenses related
to repayment of long term debt.
•The Capital Fund collects
revenues from special assess-
ments, state, and county aids
and allots them toward construc-
tion or major capital expenses.
•Enterprise Funds account for
activities that operate as public enter-
prises which are paid for by user
fees, i.e., water, recycling, sewer
and surface water management.
•Internal Service Funds ac-
count for the acquisition, opera-
tion, and maintenance of gov-
ernmental facilities and services,
which are entirely or predomi-
nately self-supporting by user
charges.
August 2015
The City of Arden Hills presents its Popular Annual Financial Report [PAFR]. The purpose of
this report is to inform the community of the City’s financial activity in a simple, easy-to-read for-
mat for the fiscal year ending December 31, 2014. These highlights are based upon the City’s
Comprehensive Annual Financial Report [CAFR] which is a more inclusive, audited document.
Making Cents
In order for Arden Hills to manage the community finances smoothly,
it divides various activities into several different funds.
Arden Hills’ Six Basic Fund Types
Pavement Management Plan
The City has a successful program for main-
taining the life of Arden Hills’ streets. The
Pavement Management Program (PMP) iden-
tifies, inventories, and tracks street conditions
to ensure that the proper maintenance is done
at the appropriate time. The results are pro-
longed pavement life and reduced overall costs
to property owners. The PMP was initiated to
insure a good maintenance program for Arden
Hills’ aging streets. The 2014 PMP area in-
cluded: Round Lake Road
Revenues (Assessment, State Aid & Interest)
— $1,883,589
Expenses — $1,515,947
Public Safety Projects
This fund accounts for the City’s share of capi-
tal equipment costs for police and fire.
Revenues (Donations & Interest) — $37,742
Expenses — $66,079
City Departments
Administration: This department provides the overall direction for the City as determined by the City Council. It is responsible for
maintaining City records, issuing licenses, administering Council policies, and election procedures.
Finance: This department conducts the financial affairs of the City of Arden Hills in accordance with the Government Accounting Stan-
dards Board (GASB) and Generally Accepted Accounting Principals (GAAP).
Community Development: This department is responsible for ensuring that laws, ordinances, and zoning codes are enforced. It is also
responsible for economic development within the City.
Public Works: This department manages the City’s infrastructure as it relates to roadways, water, sewer, and surface water management.
Parks & Recreation: This department is responsible for providing recreation activities in the City and maintaining the City’s parks and
trails.
The City’s General Fund is the largest fund and is also one of the
most vital to the City’s operation. The General Fund is the primary
fund that accounts for everyday general expenditures like park main-
tenance, police protection, and fire protection; while at the same
time, supplementing portions of the other funds. Like most funds,
the General Fund relies on the inflow of cash, shown as revenues
a n d
subse-
quently
the out-
f l o w
listed as
expenditures. The primary revenue for the General Fund is property
taxes. Intergovernmental revenues are items like state/county aids and
grants. For the year end of 2014, the City’s revenue total was
$4,304,743 which was a $203,316 (5.0%) increase from the previous
year. This is mainly due to license and permit fees generating more
revenue than expected.
2013 2014
Property Taxes $3,086,064 $3,210,025
Licenses/Permits $382,039 $327,727
Intergovernmental $120,811 $136,249
Charges for Services $410,995 $400,224
Other $98,294 $228,274
Total General Fund Revenues $4,101,427 $4,304,743
Special Assessments $3,224 $2,244
Arden Hills Popular Annual Financial Report 2014 Page 2
General Fund Revenue
The City’s total General Fund expenditures for 2014 were $4,112,090 which
was $42,758 (1%) under the final budget. Overall, General Fund expendi-
tures increased
$295,450 (8%)
from 2013.
Public Safety
costs increased
$46,549 (16%
of the increase
from 2013) and
Public Works
costs increased
$189,161 (64% of the increase from 2013); this was due to restructuring
the budget for maintenance expenses that were previously budgeted in
another fund. The chart to the left highlights the amount funded to
each of the City’s functions.
2013 2014
Central Government $970,307 $1,056,906
Public Safety $1,779,549 $1,826,098
Public Works $391,711 $580,872
Parks and Recreation $675,073 $648,214
Other $0 $0
Total General Fund
Expenditures
$3,816,640 $4,112,090
General Fund Expenditure
$0
$10,000,000
2000 2002 2004 2006 2008 2010 2013 2015
City of Arden Hills Outstanding Debt
G.O. Tax Increment Bonds
Arden Hills maintains an “AA+” rating from Standard & Poor’s.
The City issued General Obligation Tax Increment bonds in
1998, which are budgeted to be paid in full in the 2015 fiscal
year. These Tax Increment Financing (TIF) districts are an im-
portant economic development tool. Arden Hills’ TIF districts
are located along Round Lake Road, Cottage Villas and Presby-
terian Homes.
In 2004, the City of Arden Hills refinanced its debt because of
lower interest rates. To do this the City had to pay the previous
bond in full, therefore causing the spike in the chart below. The
chart also shows that the City is committed to repaying its debt
in a timely manner. The 2014 revenues were $0 in interest, ex-
penditures were $282,575, and transfers in from TIF districts
were $282,575.
Arden Hills Popular Annual Financial Report 2014 Page 3
Long Term Debt
The City of Arden Hills prides itself on controlling spending
while providing the best services possible. In 2014, the City’s
expenditures (for all funds except Enterprise and Internal Ser-
vice Funds) totaled $6,937,149; an increase of 18% from 2013.
The increase was due to Capital Improvement Projects, spe-
cifically the 2014 PMP Round Lake Road and TCAAP. The
chart highlights the City’s ability to control its expenditures
over a several year period and demonstrates the City's priori-
ties over different departments within the individual year.
The City’s revenues for 2014 (for all funds except Enterprise and
Internal Service Funds) totaled $6,982,261; an increase of 36%
from 2013. This increase is attributable to an increase in Inter-
governmental Revenues for street repair and maintenance. An-
other factor in the increase is marking up investments to market
value per the Governmental Accounting Standards Board.
Special Revenue Funds
Governmental Revenue & Expenditure
The City of Arden Hills has five special revenue funds. Special
revenue funds are used to account for revenues derived from
specific taxes or other earmarked revenue sources. They are
required by statute to finance particular functions, activities, or
governments. See the 2014 CAFR for more information.
EDA=Economic Development Authority
Internal Service Funds
Internal service funds are an accounting device used to accumu-
late and allocate costs internally among the City’s various func-
tions. The City maintains internal service funds for risk manage-
ment, engineering, central garage and technology. The totals for
these funds combined are:
Total Revenue — $833,376
Total Expenses — $882,780
Revenue Expenditures
Cable $115,032 $103,773
EDA Operating $73,452 $81,173
EDA Revolving $6,378 $0
EDA TIF District No. 3 $70,938 $1,183
EDA TIF District No. 4 $98,289 $90,785
Total $718,014 $403,097
EDA TIF District No. 2 $353,925 $126,183