HomeMy WebLinkAboutAnnual Financial Report 2017Residents receive a variety of City services at an affordable price. The cost of City services in 2016
for the owner of a single-family home in Arden Hills with an assessor’s market value of $300,300
was $63.89 per month. Utilities remain competitively priced in 2016. 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 $60.13 in 2016
(Arden Hills bills on a quarterly basis).
Capital Fund
Check Register
Description of Transaction Balance
Public Safety $27.18
General Government $16.54
Parks and Recreation $10.11
Public Works $7.22
Capital $ 2.84
Reserves $ 0.00
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
2016 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
2016, consult the 2016 CAFR
available on the City’s website
at www.cityofardenhills.org,
or from the Finance Depart-
ment at 651.792.7800.
Pavement Management Plan
The City has a program for maintaining the life
of Arden Hills’ streets. The Pavement Man-
agement Program (PMP) identifies, invento-
ries, and tracks street conditions to ensure that
maintenance is done at the appropriate time.
The results are prolonged pavement life and
reduced costs to property owners. The PMP
was initiated to ensure a maintenance program
for Arden Hills’ aging streets. The most re-
cent 2015 PMP area included: the Grant No-
ble and Venus Crystal areas.
Revenues (Assessment, State Aid & Interest)
— $2,947,175
Expenses — $4,739,220
Public Safety Projects
This fund accounts for the City’s share of capi-
tal equipment costs for police and fire.
Revenues (Donations & Interest) — $25,691
Expenses — $47,880
These funds consist of utility
services provided to the com-
munity by the City such as
water, sewer, surface water and
recycling. A comprehensive
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 reviewed 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 — $155,798
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 — $0
63.89
January 1, 2016
Homeowner
City Of Arden Hills
Sixty Four and 50/100———————————————
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
dollar is di-
vided up
into several
governmen-
tal entities.
Arden Hills
collects 22
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, 2016
In a 2016 comparison of
nine communities in
Ramsey County, the
average cost of services
on a $300,300 home-
stead in terms of prop-
erty taxes and property
tax aids showed Arden
Hills ranking as one of
the lowest. A $300,300
homestead in Arden
Hills paid $63.89 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
22¢ City of Arden Hills
22¢ 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 2017
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, 2016. 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
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 pri-
mary fund that accounts for everyday general expenditures like
street and park maintenance, public safety, and administrative
services; while at the same time, supplementing portions of the
other funds. Like most funds, the General Fund relies on the in-
flow of cash, shown as revenues and subsequently the outflow
listed as expenditures. The primary revenue for the General Fund
is prop-
e r t y
t a x e s .
Intergovernmental revenues are items like state/county aids and grants.
For year end 2016, the City’s revenue total was $4,802,989 which was a
$140,121 (3.0%) increase from the previous year. This is mainly due to
license and permit fees generating more revenue than expected.
Arden Hills Popular Annual Financial Report 2016 Page 2
General Fund Revenue
The City’s total General Fund expenditures for 2016 were $4,165,465
which was $295,152 (7%) under the final budget. Overall, General Fund
expenditures in-
c r ea s ed b y
$319,365 (8%)
from 2015. Pub-
lic Safety costs
increased $61,226
(3%) increase
from 2015) and
Public Works
costs increased by
$143,416 (43%
increase from 2015); the chart above highlights the amount funded to each
of the City’s functions.
2015 2016
General Government $1,015,835 $1,082,313
Public Safety $1,920,280 $1,981,506
Public Works $336,398 $478,814
Parks and Recreation $573,587 $621,832
Other $0 $0
Total General Fund
Expenditures
$3,846,100 $4,165,465
General Fund Expenditure
2015 2016
Property Taxes $3,203,004 $3,260,537
Special Assessments $1,316 $1,331
Licenses/Permit $518,846 $598,686
Intergovernmental $130,023 $131,914
Charges for Services $496,908 $577,041
Other $312,471 $233,480
Total General Fund Revenue $4,662,568 $4,802,989
$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.
This bond rating benefits the City by allowing the City to bor-
row at lower interest rates. The City issued General Obligation
Tax Increment bonds in 1998, these bonds were fully repaid in
2015. 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, causing the spike in the chart below. As of 2016,
the City does not hold any outstanding debt, the below table
represents a timeline of the City’s historical debt holdings.
Arden Hills Popular Annual Financial Report 2016 Page 3
Long Term Debt
The City of Arden Hills prides itself on controlling spending
while providing the best services possible. In 2016, the City’s
expenditures (for all funds except Enterprise and Internal Ser-
vice Funds) totaled $5,493,478; a decrease of 50% from 2015.
The decrease was due to fewer capital projects being com-
pleted in 2016 versus 2015. The chart highlights the City’s
ability to control its expenditures and demonstrates the City's
priorities across departments on an annual basis.
The City’s revenues for 2016 (for all funds except Enterprise and
Internal Service Funds) totaled $5,979,850; a decrease of 25%
from 2015. This decrease is due to a drop in State funding for
capital projects.
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 2016 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 — $727,725
Total Expenses — $779,568
Revenue Expenditures
Cable $136,879 $112,266
EDA Operating $9,684 $72,646
EDA Revolving $2,652 $0
EDA TIF District No. 2 $0 $0
EDA TIF District No. 3 $74,064 $1,894
EDA TIF District No. 4 $170,205 $155,148
Total $393,484 $341,954