HomeMy WebLinkAbout1981 HRA Financial StatementsHOUSING AND REDEVELOPMENT AUTHORITY
OF EDINA, MINNESOTA
FINANCIAL STATEMENTS
DECEMBER 31, 1981
HOUSING AND REDEVELOPMENT AUTHORITY
OF EDINA, MINNESOTA
ORGANIZATION
DECEMBER 31, 1981
Commissioners
Chairman - C. Wayne Courtney
Vice chairman - Frederick S. Richards
Secretary - June A. Schmidt
Assistant Secretary - A. Charles Bredesen, III
Commissioner - Leslie C. Turner
Executive Director - Gordon Hughes
G.M ®GEORGE M. HANSEN COMPANY, P.A.
A Professional Corporation of Certified Puhlir Arrounrams
ACCOUNTANTS' REPORT
Commissioners
Housing and Redevelopment Authority
of Edina, Minnesota
We have examined the combined financial statements of the Housing and Redevelopment
Authority of Edina, Minnesota as of and for the year ended December 31, 1981. Our
examination was made in accordance with generally accepted auditing standards and,
accordingly, included such tests of the accounting records and such other auditing
procedures as we considered necessary in the circumstances.
In our opinion, the combined financial statements referred to above present fairly
the financial position of the Housing and Redevelopment Authority of Edina, Minnesota
and the results of its operations for the year then ended, in conformity with
generally accepted accounting principles applied on a basis consistent with that of
the preceding year.
Our examination was made for the purpose of forming an opinion on the combined
financial statements taken as a whole. The individual statements are presented for
purposes of additional analysis and are not a.required part of the combined financial
statements of the Housing and Redevelopment Authority of Edina, Minnesota. The
information has been subjected to the auditing procedures.applied in the examination
of the combined financial statements and is subject to the same opinion as the
combined financial statements taken as a whole.
July 28, 1982
175 SOUTH PLAZA BUILDING - WAYZATA BOULEVARO AT HIGHWAY 100 MINNEAPOLIS. MINNESOTA 5541 6 612/546-2566 - -
HOUSING AND REDEVELOPMENT AUTHORITY
OF EDINA, MINNESOTA
COMBINED BALANCE SHEET
DECEMBER 31, 1981 AND 1980
Group of Accounts
General General
Construction Fixed Long -term
Fund Assets Debt
ASSETS
Cash
Construction in
progress
Amount to be provided
by tax increment
financing and future
land sales
Total assets
LIABILITIES AND FUND
BALANCE
Liabilities
Due to the City
of Edina
Contracts payable
Special assessment
payable
Fund balance (deficit)
Invested in con-
struction in
progress
Appropriated
Total liabilities
and fund
balance
$ 744
$8,549,075
Total
(memorandum only)
1981 1980
$ 744 $ 11,743
8,549,075 4,334,497
$6,683,550 6,683,550 2,629,480
$ 744 $8,549,075 $6,683,550 $15,233,369 $6,975,720
$ 292,977 $6,683,550 $ 6,976,527 . $3,134,585
33,390 33,390 9,444
5,293
$ 326,367 $6,683,550 $ 7,009,917 $3,149,322
$8,549,075 $ 8,549,075 $4,334,497
(325,623) ( 325,623) ( 508,099)
$(325,623) $8,549,075 $ 8,223,452 $3,826,398
744 $8,549,075 $6,683,550 $15,233,369 $6,975,720
See notes to financial statements.
HOUSING AND REDEVELOPMENT AUTHORITY
OF EDINA, MINNESOTA
COMBINED STATEMENT OF REVENUE, EXPENDITURES AND FUND BALANCE
YEARS ENDED DECEMBER 31, 1981 AND 1980
Debt
- Total
Construction
Service
(memorandum only)
Fund
Fund
1981
1980
Revenue
Tax increment
District 200
$ 216,871
$ 216,871
$
136,912.
District 201
391,247
391,247
425,232
State aid - Traffic signals
80,584
Parking permits
$
6,036
6,036
6,220.
Income from bond proceeds
10,500
10,500
Community development funds
366,000
Interest on loan to City
of Edina
14,371
Special assessments
4,411
$
6,036
$ 618,618
$ 624,654
$1,033,730
Other sources
Bond proceeds
$4,500,000
$4,500,000
Transfer from Debt Service Fund
$
293,910
293,910
$
49,868
$
293,910
$4,500,000
$4,793,910
$
49,868
Total revenue and other
` sources.
$
299,946
$5,118,618
$5,418,564
$1,083,598
Expenditures
Purchase of land
$
10
$4,214,568
$4,214,578
$
366,000
Public improvement
268,106
Legal service
87,359
87,359
Personal services
11,194
11,194
.9,714
Refund of earnest money
2,500
2,500
Interest on loan from
City of.Edina
11,232
23,871
35,103
24,075
Principal on bonds
50,000
50,000
50,000
Interest on bonds
140,338
140,338
128,250
Paying agent fees
141
:.Parking stickers
487
.487
799
Miscellaneous
4,688
4,688
1,479
$
117,470
$4,428,777
.$4,546,247
$
848,564
Other uses
Transfer to Construction Fund
$ 293,910
$ 293,910
$
49,868
Total expenditures and
other uses
$
117,470
$4,722,687
$4,840,157
$
898,432
Net increase (decrease)
in fund balance
$
182,476
$ 395,931
$ 578,407
$
185,166
Increase (decrease) in amount
to be provided
( 395,931)
( 395,931)
92,047
Fund balance (deficit) January 1
$(
508,099)
$ -0-
$( 508,099)
$(
785,312)
Fund balance (deficit) December 31
$(
325,623)
$ -0-
$( 325,623)
.$(.508,099)
See notes to financial statements.
HOUSING AND REDEVELOPMENT AUTHORITY
OF EDINA, MINNESOTA .
NOTES TO FINANCIAL STATEMENTS
DECEMBER 31, 1981
Note 1 - Summary of Significant Accounting Policies
The Housing and Redevelopment Authority (HRA) of Edina, Minnesota was established in
1974 by the City Council of Edina, Minnesota under the Statutes of the State of
Minnesota to complement and account for any public redevelopment and housing projects
undertaken within the City which would fall under the statutory authority of the HRA.
The accounting policies of the HRA conform to generally accepted accounting principles.
The following is a summary of the more significant policies:
A.. Fund Accounting
The accounts of the HRA are organized on the basis of funds and account
groups, each of which is considered a separate accounting entity. The
operations of each fund are accounted for with a separate set of self -
balancing accounts that comprise its assets, liabilities, fund equity,
revenues and expenditures. Resources are allocated to and accounted for
in individual funds based upon the purposes for which they are to be spent
and the means by which spending activities are controlled. The various
funds are grouped, in the financial statements in this report, into two
generic fund types within one broad fund category as follows:
GOVERNMENTAL FUNDS
Construction Fund - The Construction Fund is used to account for financial `
resources to be used for the construction of redevelopment projects.
Debt Service Fund - The Debt Service Fund is used to account for the
accumulation of resources for, and the payment of, general long -term
debt principal, interest and related costs.
B. Fixed Assets and Long -term Liabilities .
The accounting and reporting treatment applied to the fixed assets and
long -term liabilities associated with a fund are determined by its
measurement focus. All governmental funds are accounted for on a spending
or "financial flow" measurement focus. This means that only current assets
and current liabilities are generally included on their balance sheets;
accordingly, their reported fund balance is considered a measure of "available
spendable resources." Governmental fund operating statements present increases
and decreases in net current assets. Accordingly, they are said to present a
summary of sources and uses of "available spendable resources" during a period.
Costs of land and improvement acquired or constructed by the HRA are accounted
for in the General Fixed Assets Account Group, rather than in governmental
funds. No depreciation.has been provided.on general fixed assets.
HOUSING AND REDEVELOPMENT AUTHORITY
OF EDINA, MINNESOTA
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
DECEMBER 31. 1981
Note 1 - Summary of Significant Accounting Policies (Continued)
B. Fixed Assets and Long -term Liabilities (Continued)
Long -term liabilities expected to be financed from governmental funds are
accounted for in the General Long -term Debt Account Group, not in the
governmental funds. Bonds issued for the benefit of the HRA by the City
of Edina are carried in the City's General Long -term Debt Account Group.
Therefore, the HRA carries its liability to the City for advances made
for debt service payments and outstanding bond principal as its general
long -term debt.
The two account groups are not "funds." They are concerned only with the
measurement of financial position. They are not involved with measure-
ment of results of operations.
C. Basis of Accounting
Basis of accounting refers to when revenues and expenditures or expenses
are recognized in the accounts and reported in the financial statements.
Basis of accounting relates to the timing of the measurements made, regard-
less of the measurement focus applied.
All funds of the HRA are accounted for using the modified accrual basis
of accounting. Their revenues are recognized when they become measurable
and available as net current assets.
Expenditures are generally recognized under the modified accrual basis of
accounting when the related fund liability is incurred. Exceptions to
this general rule are principal and interest on general long -term debt.
D. Comparative Data
Comparative data for the prior year have been presented to provide an
understanding of changes in the City's financial position and operation.
E. Total Columns on Combined Statements
Total columns on the combined statements are captioned memorandum only to
indicate that they are presented only to facilitate financial analysis.
Data in these columns do not present financial position, results of opera-
tions, or changes in financial position in conformity with generally accepted
accounting principles. Neither is such data comparable to a consolidation.
Interfund eliminations have not been made in the aggregation of.this data.
HOUSING AND REDEVELOPMENT AUTHORITY
OF EDINA, MINNESOTA
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
DECEMBER 31, 1981
Note 2 - Changes in' Lorig -term Debt
The HRA's long -term debt is recorded in the General Long -term Debt Group of Accounts.
It consists of amounts owed to the City of'.Edina for advances for debt service and
the unpaid balance of bonds issued on behalf of the HRA by the City.
Changes in long -term debt during the year were as follows:
Balance New issues Redeemed Balance
December 31, or or December 31,
1980 charges credits 1981
Bonds $2,050,000
New issue $4,500,000
Redemptions
Current $ 50,000
$2,050,000 $4,500,000 $ 50,000 $6,500,000
Advances $ 487,433
Tax increments ( 136,912) $ 608,117
Income from bond proceeds 10,500
Bond proceeds 4,500,000
Debt service 178,391 $ 214,209
Transfer to Construction Fund 49,868 293,910
Land purchase 4,214,568
Miscellaneous expense 700
$ 579,480 $4,722,687 $5,118,617' $ 183,550
$2,629,480 $9,222,687 $5,168,617 $6,683,550
The City of Edina issued $2,200,000 General Obligation Redevelopment Bonds on December
31, 1975 and $4,500,000 Tax Increment Bonds in 1981 at interest rates of 5.30 -11.00
.percent which will be repaid serially through 1993. Changes in this debt during the
year were as follows:
Bonds Bonds
outstanding outstanding
January 1 Redeemed New issue December 31
$2,050,000 1520 000 $4,500,000 $6,500,000
The annual requirements to amortize this debt as of December 31, 1981, including
interest payments of $4,450,000, are as follows:
1982 $ 679,725
1983 674,225
1984 1,118,725
1985 1,070,375
1986 1,021,875
1987 -91 4,788,725
1992 -93 1,596,350
$10.950.000
HOUSING AND REDEVELOPMENT AUTHORITY
OF EDINA, MINNESOTA
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
DECEMBER 31, 1981
Note 3 — Chanaes in General Fixed Assets
A summary of changes in general fixed assets follows:
Balance Balance
December 31, 1980 Additions December 31, 1981
Land $1,064,619 $4,214,578 $5,279,197
Public improvements 3,050,811 3,050,811
Underground 41,701 41,701
Professional fees 177,366 177,366
$4,334,497 $4,214,578 $8,549,075
HOUSING AND REDEVELOPMENT AUTHORITY
OF EDINA, MINNESOTA
STATEMENT OF CHANGES IN AMOUNT TO BE PROVIDED
YEARS ENDED DECEMBER 31, 1981 AND 1980
Amount to be provided January 1
1981
$2,629,480
Add expenditures and other uses less
principal payment of $50,000 9,172,687
Deduct revenue ( 511,617)
Amount to be provided December 31 $6,683,550
STATEMENT OF CHANGES IN GENERAL FIXED ASSETS
YEAR ENDED DECEMBER 31, 1981
1980
$2,587,433
178,959
( 136,912)
$2,629,480
$4,334,497 $4,214,578 $8,549,075
Balance
Balance
December 31
Additions December 31
Land - HRA I
$ 647,539
$ 647,539
Design - HRA I
152,686
152,686
Land - HRA II
417,080
$4,214,578 4,611,658
Design - HRA II
4,000
4,000
Phase III - Public Improvements
546,859
546,859
Survey
13,963
13,963
Northside parking ramp
565,089
565,089
Underground utilities
41,701
41,701
Southside parking ramp
1,021,650
1,021,650
Public improvements
892,220
892,220
Stanchfield Alley
21,294
21,294
Carillon Tower
10,416
10,416
$4,334,497 $4,214,578 $8,549,075