Document Anokacountymn_doc_351497f7bc

ANOKA COUNTY Comprehensive Annual Financial Report Year Ended December 31, 2012 Prepared by Finance & Central Services Division of Anoka County, Minnesota Cevin Petersen, Division Manager ---PAGE BREAK--- C O U N T Y O F A N O K A FINANCE AND CENTRAL SERVICES DIVISION GOVERNMENT CENTER · 2100 3rd AVENUE · ANOKA, MN 55303 (763) 323-5300 · Fax (763) 422-7505 e-mail: [EMAIL REDACTED] Accounting and Budget Facilities Management Central Services Financial Management Telemanagement Information Technology COMPREHENSIVE ANNUAL FINANCIAL REPORT OF ANOKA COUNTY, MINNESOTA PREPARED BY THE FINANCE AND CENTRAL SERVICES DIVISION OF ANOKA COUNTY CEVIN PETERSEN, DIVISION MANAGER YEAR ENDED DECEMBER 31, 2012 Issued June 2013 Affirmative Action / Equal Opportunity Employer ---PAGE BREAK--- ---PAGE BREAK--- Reference Page INTRODUCTORY SECTION Transmittal Letter vi Organizational Chart xii List of Public Officials xiii Certificate of Achievement xiv FINANCIAL SECTION 1 INDEPENDENT AUDITOR'S REPORT 2 MANAGEMENT'S DISCUSSION AND ANALYSIS 5 BASIC FINANCIAL STATEMENTS 15 GOVERNMENT-WIDE FINANCIAL STATEMENTS Statement of Net Position Exhibit 1 16 Statement of Activities Exhibit 2 17 FUND FINANCIAL STATEMENTS Balance Sheet - Governmental Funds Exhibit 3 18 Reconciliation of the Governmental Funds Balance Sheet to the Statement of Net Position Exhibit 4 19 Statement of Revenues, Expenditures, and Changes in Fund Balances - Governmental Funds Exhibit 5 20 Reconciliation of the Statement of Revenues, Expenditures, and Changes in Fund Balances of Governmental Funds to the Statement of Activities Exhibit 6 21 Statement of Net Position - Proprietary Funds Exhibit 7 22 Statement of Revenues, Expenses, and Changes in Fund Net Position - Proprietary Funds Exhibit 8 23 Statement of Cash Flows - Proprietary Funds Exhibit 9 24 Statement of Fiduciary Net Position - Fiduciary Funds Exhibit 10 25 Statement of Changes in Fiduciary Net Position - Other Postemployment Benefits Trust Fund Exhibit 11 26 NOTES TO THE FINANCIAL STATEMENTS 27 REQUIRED SUPPLEMENTARY INFORMATION (OTHER THAN MD&A) 57 Schedule of Revenues, Expenditures, and Changes in Fund Balance - Budget and Actual General Fund Schedule 1 58 Road and Bridge Special Revenue Fund Schedule 2 60 Human Services Special Revenue Fund Schedule 3 61 Notes to the Required Supplementary Information 62 COMBINING AND INDIVIDUAL FUND FINANCIAL STATEMENTS 65 Description of Nonmajor Governmental Funds - Special Revenue Funds 66 Combining Balance Sheet - Nonmajor Governmental Funds Statement 1 67 Combining Statement of Revenues, Expenditures, and Changes in Fund Balances - Nonmajor Governmental Funds Statement 2 68 Schedule of Revenues, Expenditures, and Changes in Fund Balance - Budget and Actual County Library Special Revenue Fund Schedule 4 69 Parks and Recreation Special Revenue Fund Schedule 5 70 Cooperative Extension Special Revenue Fund Schedule 6 71 Law Library Special Revenue Fund Schedule 7 72 Regional Railroad Authority Special Revenue Fund Schedule 8 73 Housing and Redevelopment Authority Special Revenue Fund Schedule 9 74 Statement of Changes in Assets and Liabilities - Agency Fund Statement 3 75 TABLE OF CONTENTS ANOKA COUNTY ANOKA, MINNESOTA COMPREHENSIVE ANNUAL FINANCIAL REPORT FOR THE YEAR ENDED DECEMBER 31, 2012 ---PAGE BREAK--- Reference Page TABLE OF CONTENTS ANOKA COUNTY ANOKA, MINNESOTA COMPREHENSIVE ANNUAL FINANCIAL REPORT FOR THE YEAR ENDED DECEMBER 31, 2012 FINANCIAL SECTION (Continued) OTHER SUPPLEMENTARY INFORMATION 77 Schedule of Deposits and Investments Schedule 10 78 Combined Schedule of Intergovernmental Revenue Schedule 11 79 Combining Schedule of Intergovernmental Revenue - Special Revenue Funds Schedule 12 80 Schedule of Expenditures of Federal Awards Schedule 13 81 Notes to the Schedule of Expenditures of Federal Awards 83 Schedule of Capital Assets Used in the Operation of Governmental Funds by Function Schedule 14 84 Schedule of Changes in Capital Assets Used in the Operation of Governmental Funds by Function Schedule 15 85 Schedule of Fund Transfers Schedule 16 86 Schedule of Revenues, Expenditures, and Changes in Fund Balance - Housing and Redevelopment Authority Special Revenue Fund Projects Schedule 17 88 STATISTICAL SECTION 89 Statistical Section Summary 90 Net Position - Last Ten Fiscal Years Table 1 91 Changes in Net Position- Last Ten Fiscal Years Table 2 92 Fund Balances, Governmental Funds - Last Ten Fiscal Years Table 3 93 Changes in Fund Balances, Governmental Funds - Last Ten Fiscal Years Table 4 94 Estimated Market Value, Taxable Market Value and Net Tax Capacity - Last Ten Fiscal Years Table 5 95 Property Tax Rates - Direct and Overlapping Governments - Last Ten Assessment Years Table 6 96 Ten Largest Taxpayers - Current Year and Nine Years Prior Table 7 97 Property Tax Levies and Collections - Last Ten Fiscal Years Table 8 98 Ratios of Outstanding Debt to Personal Income and Debt per Capita - Last Ten Fiscal Years Table 9 99 Ratios of Net Bonded Debt to Estimated Market Value and Net Bonded Debt per Capita - Last Ten Fiscal Years Table 10 100 Computation of Direct, Overlapping, and Underlying Long-term Debt Table 11 101 Legal Debt Margin - Last Ten Fiscal Years Table 12 102 Pledged Revenue Coverage - Last Ten Fiscal Years Table 13 103 Demographic and Economic Statistics - Last Ten Fiscal Years Table 14 104 Ten Largest Employers - Current Year and Nine Years Prior Table 15 105 Comparison of Employment by Industry - 2011 and 2002 Table 16 106 County Full Time Equivalents by Program Area - Last Ten Fiscal Years Table 17 107 Operating Indicators by Function / Program - Last Ten Fiscal Years Available Table 18 108 Return on Investments - Last Ten Fiscal Years Table 19 109 Capital Assets and Infrastructure Statistics by Function - Last Ten Fiscal Years Table 20 110 Summary of Insurance in Force Table 21 111 ---PAGE BREAK--- ANOKA COUNTY ANOKA, MINNESOTA INTRODUCTORY SECTION ---PAGE BREAK--- C O U N T Y O F A N O K A FINANCE AND CENTRAL SERVICES DIVISION GOVERNMENT CENTER · 2100 3rd AVENUE · ANOKA, MN 55303 (763) 323-5300 · Fax (763) 422-7505 e-mail: [EMAIL REDACTED] Accounting and Budget Facilities Management Central Services Financial Management Telemanagement Information Technology June 21, 2013 The Citizens of Anoka County The Honorable Chair and Commissioners Anoka County Board of Commissioners Anoka County Government Center 2100 Third Avenue Anoka, Minnesota 55303 Ladies and Gentlemen: The Comprehensive Annual Financial Report of Anoka County is herewith submitted for the fiscal year ended December 31, 2012. This report has been produced in compliance with Governmental Accounting Standards Board, Statement No. 34. The County’s Finance and Central Services Division prepared this report in conformity with generally accepted accounting principles (GAAP). The responsibility for both the accuracy of the presented data and the completeness and fairness of the presentation, including all disclosures, rests with the County. We believe the data, as presented, is accurate in all material respects; that it is presented in a manner designed to fairly set forth the financial position and results of operations of the County as measured by the financial activity of its various funds; and that all disclosures necessary to enable the reader to gain the maximum understanding of the County's financial affairs have been included. Copies of this report will be sent to elected officials, County management, bond rating agencies, financial institutions, and others who have expressed an interest in Anoka County's financial affairs. The report is also available on the Anoka County web site at www.anokacounty.us. GOVERNMENTAL ORGANIZATION AND SERVICES The Anoka County Board of Commissioners consists of seven commissioners elected from the seven districts in the County. All commissioners serve overlapping four-year terms of office. Each member of the County Board serves on various committees. The major committees are Management, Public Works, Finance and Capital Improvements, Public Safety, Information Technology, Human Services, Parks and Recreation, Intergovernmental and Community Relations, and Waste Management and Energy. The Board appoints the County Administrator who is the chief administrative officer of the County. Duties include responsibility for the administration of Board policy and for the management of the various County divisions and departments. The County's functions and employees are divided among statutory offices, four divisions and several departments. During 2012, the elected County Attorney and County Sheriff managed their respective statutory offices. The division managers and remaining department heads and other County officials (such as Medical Examiner) are appointed by the County Board, with the exception of the Cooperative Extension Agent, who is appointed by the University of Minnesota. The County provides a full range of services contemplated by statute. This includes public safety, recreation, public works, health services, cultural, human services, vital statistics, and tax assessment and collection. THE FINANCIAL REPORTING ENTITY This report includes Anoka County and its component units, the Anoka County Regional Railroad Authority and the Anoka County Housing and Redevelopment Authority. The criteria used in determining the financial reporting entity are consistent with Statement No. 14 of the Governmental Accounting Standards Board, "The Financial Reporting Entity." ---PAGE BREAK--- FINANCIAL MANAGEMENT Anoka County's strong financial position continues to offer the people of the County very positive financial benefits. Several initiatives, which are designed to maintain or enhance the County’s strong financial position, include: 1. Investing funds not immediately needed for expenditures to maximize non-tax revenue; 2. Using advice and recommendations from the general public to improve productivity in the delivery of County services; 3. Allocating County resources to those areas that meet community needs as determined by the Board of County Commissioners; and 4. Closely monitoring expenditures to ensure that functions are carried out within authorized levels. NOTES TO THE FINANCIAL STATEMENTS The Notes to the Financial Statements, presented in the Financial Section, are an integral part of this Comprehensive Annual Financial Report and should be read for a more complete understanding of the statements and information presented herein. MANAGEMENT’S DISCUSSION AND ANALYSIS Generally accepted accounting principles (GAAP) require that management provide a narrative introduction, overview, and analysis to accompany the basic financial statements in the form of Management’s Discussion and Analysis (MD&A). This letter of transmittal is designed to complement the MD&A and should be read in conjunction with it. Anoka County’s MD&A can be found immediately following the report of the independent auditors. GENERAL INFORMATION CONCERNING THE COUNTY Anoka County was established May 23, 1857, and is located in the northwestern portion of the Minneapolis/Saint Paul seven-county metropolitan area. The County encompasses an area of 440 square miles (approximately 272,960 useable acres) and contains all or portions of 20 cities and 1 town. Anoka County is Minnesota's fourth most populous County. The County's 2010 U.S. Census population count of 330,884 was 11 percent greater than its 2000 count of 298,084. The 2010 U.S. Census of housing showed a 16.1 percent increase in the number of housing units in the County from 108,091 in 2000 to 125,525 in 2010. MAJOR INDUSTRIES WITHIN THE COUNTY For more than 150 years, Anoka County has taken great care to foster its abundance of economic, cultural and natural resources. Anoka County is home to well-recognized industry leaders such as Medtronic, ATK’s Federal Premium, Honeywell Flight Systems, Aveda, Onan Corporation, Pentair Technical Products, and many more. The County's emphasis on attracting technology based companies has caused many new promising companies to locate in the area’s business development centers. Three of these centers, the Minnesota Medical Enterprise Park in Coon Rapids, Pheasant Ridge Business Park in Blaine, and the Development Center in Columbia Heights, have focused on attracting and assisting developing medical and high technology companies to Anoka County and providing them with access to the assistance they need to be successful. Such pioneering companies as SarTec, Infinite Campus, Parametric Technology, N.T. International, Dymedix, Comedicus, Visual Circuits, Bioenergy, Inc., and others have located in the County. ANOKA COUNTY COLLABORATION & VISION Anoka County, Minnesota, located north of the Twin Cities metropolitan area, is comprised of 21 municipalities. Here you’ll find a unique blend of urban amenities in a friendly, small town atmosphere. Despite today’s challenging economic times, Anoka County continues to be a great place to live, work, play, and do business. With award-winning schools and several post-secondary educational institutions, Anoka County residents are well-educated and take pride in their work and community. The County has numerous commercial and industrial sites available for development including several hundred acres zoned industrial within the Metropolitan Urban Service Area (MUSA) 20 minutes from downtown Minneapolis and St. Paul. Connect Anoka County, a cooperative project between Anoka County and Zayo Bandwidth, of Louisville, Colorado, has received a $13.4 million grant from the America Recovery and Reinvestment Act (ARRA), to expand fiber broadband connectivity across the County. This project links 145 public entities with three core rings, creating a 286-mile fiber optic backbone. This backbone connects police, fire, city and town halls, and County buildings. This network will also provide a direct advantage to local businesses, passing through the County’s key business districts and economic development areas. Connect Anoka County is scheduled for completion in the fall of 2013. The countywide fiber network will be owned and operated by Zayo Bandwidth, a private company, allowing service to local businesses and secondary service providers of residential service. Transportation is a priority in Anoka County. Infrastructure such as railroads, airports, and freeways has a significant impact on economic growth. The County is served by three interstate highways: I-35W from downtown Minneapolis, I-35E from downtown St. Paul, and I-694 connecting the north metro. Other highways serving the County are U.S. Highways 10, 169, and 610, and State Highways 65 and 47. U.S. Highway 10 provides a nonstop freeway from the city of Anoka to both downtown Minneapolis and St. Paul. U.S. Highway 610, in conjunction with State Highway 252, links I-35W to I-94. Anoka County has taken a leadership role in the region’s mass transit initiatives. the state’s first commuter rail line, became operational in November 2009. A service designed almost exclusively to take people to and from work, trains were on time 96 percent of the time and ridership continues to grow. carries passengers between Big Lake in Sherburne County and downtown Minneapolis, with stops in Elk River, Anoka, Coon Rapids, and Fridley. A new stop in Ramsey became operational in the fall of 2012. vii ---PAGE BREAK--- The Anoka County-Blaine Airport boasts a first class, fixed-based operation, hangars for corporate and private jets, and additional ramp space for jet parking. The County receives lease payments for hangars and ramp space from the facility’s management organization, Key Air Executive Charter and Aircraft Management, and its tenants. The development of creative partnerships has been a key component of Anoka County’s success. Anoka County Sheriff’s Office and Tri-County Regional Forensic Laboratory consolidates the majority of the Sheriff’s Office operations, allowing officers to respond to emergencies more quickly and resulting in communication that is more efficient and streamlined. The state of the art forensic laboratory was made possible by a joint powers agreement between Anoka, Wright, and Sherburne Counties. The facility also features a unique agreement with Hamline University in St. Paul to offer practical experience and internships to students studying forensic science. The Anoka County Midwest Medical Examiner’s Office is another example of how Anoka County achieves results with innovative cooperative initiatives. The facility serves and shares costs with more than a dozen Minnesota counties and three Wisconsin counties. It incorporates the latest scientific death investigation methods and tools while compassionately helping families and survivors learn the circumstances surrounding the death of their loved one. The National Sports Center (NSC) in Blaine boasts the largest indoor ice skating and outdoor soccer venue in the world and attracts more than four million visitors each year. The NSC is the home training center for the USA Women’s Olympic Hockey team and also hosts the world’s largest international soccer tournament, the Schwan’s USA Cup. It is also considering a youth baseball complex in partnership with Major League baseball’s Minnesota Twins. FUTURE PROJECTS, CAPITAL IMPROVEMENTS FUNDING Several important maintenance projects and building and equipment upgrades are included in Anoka County’s 2013 Capital Improvements Budget (CIB). The Government Center elevators will receive a $450,000 upgrade in addition to nearly $360,000 for security enhancements while the jail will receive a $760,000 chiller system. The 2013 CIB includes several highway projects totaling $23.8 million: $10 million for the TH 10 interchange at CSAH 83 intersection improvement; $3.5 million for the annual pavement rehabilitation program; $2.9 million for CSAH 51 (University Ave.) expansion to four lane divided highway; $2.1 million for the Highway Safety Improvement Program (HSIP); $2.0 million for CSAH 11 (Foley Blvd.) rebuilding to four lane divided highway; $1.5 million for CSAH 116 (Bunker Lake Blvd.) rebuilding to a four lane divided highway; and $1.8 million for several smaller projects. Anoka County will fund library improvements totaling nearly $967,000 which includes improvements to the Northtown library and parking lot rehabilitation for all library locations in the 2013 CIB. Anoka County will fund eight major Information Technology projects totaling $3.2 million in the 2013 CIB. The Parks and Recreation Department will use $344,000 to acquire property around Columbus Lake and Rice Creek. FACTORS AFFECTING FINANCIAL CONDITION The information presented in the financial statements is perhaps best understood when it is considered from the broader perspective of the specific environment within which the Anoka County Government operates. Along with the previous discussion about major industries and future development in the County, it is important to look at the impact of changes in population, employment and market value within the County. Over the last few years, the Anoka County Board has taken an increasing interest in the area’s development and is taking on the role of a responsible partner to the communities within the County. Growth has become a consistent condition with a variety of challenges and possibilities and Anoka County is actively seeking opportunities to partner with local governments and those interested in locating and developing in the area. The growth pattern of the County has brought other pressures to bear on the County and its communities. The influx of residents has brought a variety of demands: more houses and more people mean more services and more infrastructure. Today’s Anoka County residents have high expectations of their government and its ability to provide for their needs. A growing Anoka County citizenry, and by extension, its elected County Board members, have a keen and vested interest in transportation and public safety, assigning these two key issues their highest priorities. In an effort to provide a broader base as well as an equitable funding mechanism to support transportation infrastructure, the County Board in July of 2006 approved a County wheelage tax which will help fund County highway improvements. Additional transportation infrastructure improvements will be funded by the State and Federal Government and through issuance of County road bonds. The other project related to high priority initiatives is the Sheriff’s Office and Tri-County Regional Forensics Laboratory. Still these critical initiatives are planned with fiscal control. Anoka County continues budget restraint, maintaining a moderate level of debt, and control over the number of County employees. The number of full-time equivalents (FTE) employed by Anoka County government per 1,000 residents has decreased by nearly 1 FTE over the last ten years from 6.1 FTE to 5.2 FTE. When looking at the employment within the County, the average number of employees has remained level in the ten-year comparison. Anoka County’s unemployment rate is 5.6 percent for 2012, compared to the State of Minnesota rate of 5.4 percent and United States rate of 7.6 percent. The County’s unemployment has been at or below both the State and Federal rates for six of the last ten years. Total estimated market value had been increasing steadily until 2008 when the County experienced a decline averaging 7 percent a year. The changes in market home values and the elimination of the market value tax credit resulted in an $8 million decline since 2008 of total estimated market value. The Statistical Section of this financial report provides more detailed ten-year data on unemployment, market value in the County, demographics, employment and estimated payroll by industry. viii ---PAGE BREAK--- ACCOUNTING SYSTEM, INTERNAL AND BUDGETARY CONTROL In developing and evaluating the County's accounting system, consideration is given to the adequacy of internal accounting controls. Internal accounting controls are designed to provide reasonable, but not absolute, assurance regarding: the safeguarding of assets against loss from unauthorized use or disposition; and the reliability of financial records for preparing financial statements and maintaining accountability for assets. The concept of reasonable assurance recognizes that: the cost of a control should not exceed the benefits likely to be derived; and the evaluation of costs and benefits requires estimates and judgments by management. All internal control evaluations occur within the above framework. We believe that the County's internal accounting controls adequately safeguard assets and provide reasonable assurance of proper authorization and recording of financial transactions. The County's system of internal controls is supported by written policies and procedures and is continually reviewed, evaluated, and modified to meet current needs. The County Board authorized funding in the 1993 budget and for each year since for the creation of an Internal Auditor position, which will further ensure that internal control is adequate to safeguard assets and provide reasonable assurance of proper authorization and recording of financial transactions. The County's accounting system is organized on the basis of funds, 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, equity, revenues and expenditures/expenses. The basic accounting period is the month, in that various reports are issued Once each year at December 31 the books are closed. Anoka County uses the modified accrual basis of accounting for accounting and budgeting its governmental funds, which means that the determining factor for recording expenditures is when the service or material has been delivered and the County has incurred a liability for payment. Revenues are recorded when received or when measurable and available to pay liabilities of the current period. The Fund Financial Statements report these activities of the governmental funds. The Government-wide Financial Statements are reported using the accrual basis of accounting. This means that revenues are recorded when earned and expenses are recorded when a liability is incurred. The annual budgeting process provides the primary mechanism by which key decisions are made regarding the levels and types of services to be provided, given the anticipated level of available resources. The county utilizes a “priority based” service level approach to resource allocation. Each program will prioritize services and allocate resources according to highest priority and greatest need. The county will attempt to maintain its present service level for all priority and essential services within available revenues. The budgeting process integrates and authorizes, for a given year, the decisions of the Board of Commissioners, management and the County’s Capital Improvement Budget. The legal level of budgetary control is at the fund level, pursuant to Minnesota Statutes. However, Anoka County's financial policies provide that budgetary control is to be maintained at the program level, and further monitored within each program by the major account groupings of personal services, operating expenses, program expenses, and capital outlay. Orders for services or materials in the form of purchase orders are considered obligated, for management and budget control purposes, against the budget at the time of issue of the purchase order. This recording of the obligation reserves that portion of the applicable appropriation and thereby maintains the integrity of the current year budget and subsequent budgets. All departments and divisions submit budget requests in June of each year. The requests are reviewed and adjusted for presentation to the County Commissioners in August. There is a discretionary period in which the departments/divisions may adjust their budgets prior to the County Board’s adoption of the proposed budget and certification of proposed tax levy in September. The County Board conducts a public hearing in early December, after which the final budget is adopted for the subsequent calendar year. Budget-to-actual comparisons are provided in this report for each individual governmental fund for which an appropriated annual budget has been adopted. This comparison for the General Fund and Anoka County’s major governmental funds is included in the Required Supplementary Information section of this report. REVENUE LIMITATIONS For the 2012 budget, the State Legislature imposed a levy limit, which Anoka County met, with a certified levy decrease of 5.2 percent. The County Board of Commissioners is committed to holding down the County portion of taxes while continuing to provide the programs and improvements so necessary to our growing population. CASH MANAGEMENT The County-appointed Treasury Manager, under the direction of the Finance and Central Services Division Manager, is responsible for investing County funds. All funds were invested in securities in accordance with requirements set forth in Minnesota statutes. After adjustments in fair market value, the County had investment income in all governmental and proprietary funds of $2,921,126 in 2012. All cash and investments are deposited or invested in accordance with applicable statutes governing safekeeping options and requirements. The average rate of return for the past several years can be found in the Statistical Section, Table 19. ix ---PAGE BREAK--- DEBT ADMINISTRATION The ratio of net bonded debt to tax capacity and to market value and the amount of bonded debt per capita are useful indicators of the County's debt position. These indicators for the County at the end of the 2012 fiscal year were: Ratio of Ratio of Net Net Net Bonded Net Bonded Bonded Debt Bonded Debt Debt to Market Debt to Tax Amount Per Capita Value Capacity 206,070,940 $ 611 $ 0.85% 64.6% Outstanding bonds and notes payable at December 31, 2012, totaled $224,189,655 of which $183,899,655 is considered to be gross direct tax supported debt. The amount available in debt service and capital projects funds applicable to this debt is $18,118,713, which leaves a net direct bonded debt of $165,780,942, which is approximately 22.9 percent of the County's statutory legal debt limit of $724,495,937. The County's recent general obligation bond issues and refunding issues have been rated AAA by Standard and Poor’s. INSURANCE Anoka County has insurance coverage(s) in place to insure County property and assets against loss. In addition, the County self- insures against possible losses for general liability and workers’ compensation. Table 21 in the Statistical Section provides detailed information on the levels and types of coverage in place. CAPITAL PROJECTS FUND The County's capital projects are financed with grants from the Metropolitan Council, federal and state grant funds, general obligation bond proceeds, and County tax levy. Completed projects and uncompleted construction in progress at year-end are capitalized. Additionally, funds in the Capital Projects Fund may be appropriated for general County building projects and other capital improvements and/or equipment. INDEPENDENT AUDIT Minnesota state law requires an annual examination of the books of account, financial records and transactions of the County by the State Auditor. This requirement has been complied with and the Auditor's report is included in the Financial Section of this report. The State Auditor's Office will issue a management and compliance letter covering the review, made as a part of its examination of the County's system of internal control and compliance with applicable legal provisions. The management and compliance letter will not modify or affect, in any way, this Comprehensive Annual Financial Report. SINGLE AUDIT As a recipient of federal, state and local financial assistance, the County is responsible for ensuring that adequate internal controls are in place to ensure compliance with applicable laws and regulations related to those programs. These internal controls are subject to periodic evaluation by management and the internal staff of the County. Office of Management and Budget (OMB) Circular A-133 sets forth the audit requirements for state and local governments receiving federal assistance. It provides for a single independent audit of the financial operations, including the compliance with certain provisions of federal laws and regulations. The requirements have been established to ensure that audits are made on an organizational wide basis rather than a grant-by-grant basis. The grants for which these requirements applied are identified in the Schedule of Expenditures of Federal Awards. As a part of the government’s single audit, tests are performed to determine the adequacy of the internal controls, including that portion related to federal financial assistance programs, as well as to determine that the County has complied with applicable laws and regulations. CERTIFICATE OF ACHIEVEMENT The Government Finance Officers Association of the United States and Canada (GFOA) awarded a Certificate of Achievement for Excellence in Financial Reporting to Anoka County for its Comprehensive Annual Financial Report for the fiscal year ended December 31, 2011. This is the 25th consecutive year that the County has achieved this prestigious award. In order to be awarded a Certificate of Achievement, a government unit must publish an easily readable and efficiently organized comprehensive annual financial report, whose contents conform to program standards. Such reports must satisfy both generally accepted accounting principles and applicable legal requirements. A Certificate of Achievement is valid for a period of one year only. We believe this report for 2012 continues to conform to the Certificate of Achievement Program requirements, and we are submitting it to the GFOA for consideration. Additionally, the GFOA presented an award of Distinguished Budget Presentation to Anoka County for its annual budget for the year 2012. This is the 15th year Anoka County has received this important award. x ---PAGE BREAK--- ACKNOWLEDGMENTS I wish to acknowledge the professional contribution and hard work put forth by the entire Accounting and Budget staff and others in the Finance and Central Services Division throughout the year and during the preparation of this report. I also would like to thank the County Board of Commissioners for its interest and support in planning and conducting the financial activities of Anoka County in a responsible and progressive manner. The County's excellent financial status is a tribute to that involvement. Respectfully submitted, Cevin Petersen, Division Manager Finance and Central Services Division CP: cc: Jerry Soma, County Administrator xi ---PAGE BREAK--- ,1)250$7,21 (/(&725$7( &2817< %2$5' &2817< $'0,1,675$725 $77251(< &2857 $'0,1,675$7,21 %2$5' 2) 29(56,*+7 &2857 $332,17(' $77251(< +80$1 5(6285&(6 '(387< &2817< $'0,1,675$725 ,17(51$/ $8',7 (;7(16,21 &200,77(( LI%5$5< %2$5' 01 (;7(16,21 6(59,&( ',9,6,21 0$1$*(5 3523(57< 5(&25'6 7$;$7,21 ',9,6,21 0$1$*(5 &(175$/ 6(59,&(6 ',9,6,21 0$1$*(5 +80$1 6(59,&(6 ',9,6,21 0$1$*(5 6(59,&(6 3URSHUW\ 5HFRUGV DQG 3XEOLF 6HUYLFH 3URSHUW\ DQG &HQWUDO DQG +HDOWK 6RFLDO 0HQWDO +HDOWK 3XEOLF :RUNV 3DUNV DQG '(3$570(176 &XOWXUDO *RYWO 3URSHUW\ 7D[ 5HVHDUFK -RE &HQWHU 0JPW 9HWHUDQV ,QWHJUDWHG :DVWH %XUHDX &HQWUDO &RPP 9RWHU 5HJ 81,76127 '(3$570(176 9LWDO 12/31/12 ANOKA COUNTY GOVERNMENT ORGANIZATIONAL CHART xii ---PAGE BREAK--- Office Name Term Expires County Board of Commissioners District #1 Matt Look January 2017 District #2 Andy Westerberg January 2013 District #2 Commissioner Elect Julie Braastad January 2017 District #3 Robyn West, Vice-Chair* January 2017 District #4 Jim A. Kordiak January 2015 District #5 Carol LeDoux January 2015 District #6 Rhonda Sivarajah, Chair* January 2017 District #7 Dan Erhart January 2013 District #7 Commissioner Elect Scott Schulte January 2015 Elected County Officials Attorney Tony Palumbo January 2015 Sheriff James Stuart January 2015 Appointed County Officials County Administrator Jerry Soma Indefinite Medical Examiner Quinn Strobl, M.D. December 31, 2014 Extension Service Agent Kim Boyce Indefinite Library Director Marlene Moulton Janssen Indefinite Deputy County Administrator Tim Yantos Indefinite Division Managers Finance and Central Services Cevin Petersen Indefinite Human Services Don Ilse Indefinite Property Records and Taxation Larry Dalien Indefinite Public Services Jon Olson Indefinite Human Resources Director Melanie Ault Indefinite * During 2012 Appointed by the University of Minnesota ANOKA COUNTY 2012 LIST OF PUBLIC OFFICIALS ANOKA, MINNESOTA xiii ---PAGE BREAK--- ---PAGE BREAK--- ANOKA COUNTY ANOKA, MINNESOTA FINANCIAL SECTION ---PAGE BREAK--- An Equal Opportunity Employer REBECCA OTTO STATE AUDITOR STATE OF MINNESOTA OFFICE OF THE STATE AUDITOR SUITE 500 525 PARK STREET SAINT PAUL, MN 55103-2139 (651) 296-2551 (Voice) (651) 296-4755 (Fax) [EMAIL REDACTED] (E-mail) 1-[PHONE REDACTED] (Relay Service) INDEPENDENT AUDITOR’S REPORT Board of County Commissioners Anoka County Report on the Financial Statements We have audited the accompanying financial statements of the governmental activities, the business-type activities, each major fund, and the aggregate remaining fund information of Anoka County, Minnesota, as of and for the year ended December 31, 2012, and the related notes to the financial statements, which collectively comprise the County’s basic financial statements, as listed in the table of contents. Management’s Responsibility for the Financial Statements Management is responsible for the preparation and fair presentation of these financial statements in accordance with accounting principles generally accepted in the United States of America; this includes the design, implementation, and maintenance of internal control relevant to the preparation and fair presentation of financial statements that are free from material misstatement, whether due to fraud or error. Auditor’s Responsibility Our responsibility is to express opinions on these financial statements based on our audit. We conducted our audit in accordance with auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial statements. The procedures selected depend on the auditor’s judgment, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal control relevant to the County’s preparation and fair presentation of the financial statements in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the County’s internal 2 ---PAGE BREAK--- control. Accordingly, we express no such opinion. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of significant accounting estimates made by management, as well as evaluating the overall presentation of the financial statements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinions. Opinions In our opinion, the financial statements referred to above present fairly, in all material respects, the respective financial position of the governmental activities, the business-type activities, each major fund, and the aggregate remaining fund information of Anoka County as of December 31, 2012, and the respective changes in financial position and, where applicable, cash flows thereof for the year then ended in accordance with accounting principles generally accepted in the United States of America. Other Matters Required Supplementary Information Accounting principles generally accepted in the United States of America require that the Management’s Discussion and Analysis and Required Supplementary Information as listed in the table of contents be presented to supplement the basic financial statements. Such information, although not part of the basic financial statements, is required by the Governmental Accounting Standards Board, who considers it to be an essential part of financial reporting for placing the basic financial statements in an appropriate operational, economic, or historical context. We have applied certain limited procedures to the required supplementary information in accordance with auditing standards generally accepted in the United States of America, which consisted of inquiries of management about the methods of preparing the information and comparing the information for consistency with management’s responses to our inquiries, the basic financial statements, and other knowledge we obtained during our audit of the basic financial statements. We do not express an opinion or provide any assurance on the information because the limited procedures do not provide us with sufficient evidence to express an opinion or provide any assurance. Supplementary and Other Information Our audit was conducted for the purpose of forming opinions on the financial statements that collectively comprise Anoka County’s basic financial statements. The introductory section, the combining and individual fund financial statements, the other supplementary information, and the statistical section are presented for purposes of additional analysis and are not a required part of the basic financial statements. The combining and individual fund financial statements and the other supplementary information are the responsibility of management and were derived from and relate directly to the underlying accounting and other records used to prepare the basic financial statements. Such information has been subjected to the auditing procedures applied in the audit of the basic financial statements and certain additional procedures, including comparing and reconciling such information directly to the underlying accounting and other records used to prepare the basic financial statements or to the basic financial statements themselves, and other additional 3 ---PAGE BREAK--- procedures in accordance with auditing standards generally accepted in the United States of America. In our opinion, the information is fairly stated, in all material respects, in relation to the basic financial statements as a whole. The introductory and statistical sections have not been subjected to the auditing procedures applied in the audit of the basic financial statements and, accordingly, we do not express an opinion or provide any assurance on them. Other Reporting Required by Government Auditing Standards In accordance with Government Auditing Standards, we have also issued a report dated June 21, 2013, on our consideration of Anoka County’s internal control over financial reporting and on our tests of its compliance with certain provisions of laws, regulations, contracts, grant agreements, and other matters. The purpose of that report is to describe the scope of our testing of internal control over financial reporting and compliance and the results of that testing, and not to provide an opinion on the internal control over financial reporting or on compliance. That report is an integral part of an audit performed in accordance with Government Auditing Standards in considering Anoka County’s internal control over financial reporting and compliance. REBECCA OTTO GREG HIERLINGER, CPA STATE AUDITOR DEPUTY STATE AUDITOR June 21, 2013 4 ---PAGE BREAK--- ANOKA COUNTY ANOKA, MINNESOTA MANAGEMENT’S DISCUSSION AND ANALYSIS DECEMBER 31, 2012 (Unaudited) As management of Anoka County, we offer readers of Anoka County’s financial statements this narrative overview and analysis of the financial activities of Anoka County for the fiscal year ended December 31, 2012. We encourage readers to consider the information presented here in conjunction with additional information that we have furnished in our letter of transmittal, which can be found on pages vi to xi of this report. Financial Highlights  The assets of Anoka County exceeded its liabilities at the close of the fiscal year by $659 million (net position). Of this amount, the County has $20.6 million in unrestricted net position.  The County’s total net position increased by $36 million or about 6 percent.  As of the close of the current fiscal year, Anoka County’s governmental funds reported combined ending fund balances of $176 million. Approximately 65 percent of this total amount, $114 million, is available for spending at the County’s discretion (committed, assigned, and unassigned fund balances). Nearly $98 million of these funds are committed or assigned for specific purposes.  Combined assigned and unassigned fund balance for the General Fund was $33.4 million or 33.8 percent of total General Fund expenditures.  Anoka County’s total debt increased by $9.4 million (4.4 percent) during the current fiscal year. Anoka County’s debt level continues to be categorized as low to moderate by Standard & Poors and manageable by Moody’s Investor Services affirming their respective AAA and Aa1 ratings. Anoka County issued $29.1 million in general obligation bonds and retired $19.7 million debt in 2012. Overview of the Financial Statements This discussion and analysis is intended to serve as an introduction to Anoka County’s basic financial statements, which are comprised of three components: 1) government-wide financial statements, 2) fund financial statements, and 3) notes to the financial statements. This report also contains other supplementary information in addition to the basic financial statements themselves. Government-wide financial statements. The government-wide financial statements provide readers with a broad overview of Anoka County’s finances, in a manner similar to private-sector businesses. The Statement of Net Position presents information on all of Anoka County’s assets and liabilities, with the difference between the two reported as net position. Over time, increases or decreases in net position may serve as a useful indicator of whether the financial position of Anoka County is improving or deteriorating. The Statement of Activities presents information showing how Anoka County’s net position changed during the most recent fiscal year. All changes in net position are reported as soon as the underlying event giving rise to the change occurs, regardless of the timing of related cash flows. Thus, revenues and expenses are reported in this statement for some items that will only result in cash flows in future fiscal periods uncollected taxes and earned but unused compensated absences). Both the Statement of Net Position and the Statement of Activities distinguish functions of Anoka County that are principally supported by taxes and intergovernmental revenues (governmental activities) from other functions that are intended to recover all or a significant portion of their costs through user fees and charges (business-type activities). The governmental activities of Anoka County include general government, public safety, highways and streets, human services, sanitation, culture and recreation, including Chomonix Golf Course, conservation of natural resources and economic development. The business-type activity of Anoka County includes Bunker Beach Aquatic Center. The government-wide financial statements can be found on pages 16 and 17 of this report. 5 ---PAGE BREAK--- Unaudited Fund financial statements. A fund is a grouping of related accounts that is used to maintain control over resources that have been segregated for specific activities or objectives. Anoka County, like other state and local governments, uses fund accounting to ensure and demonstrate compliance with finance-related legal requirements. All of the funds of Anoka County can be divided into three categories: governmental funds, proprietary funds, and fiduciary funds. Governmental funds. Governmental funds account for essentially the same functions reported as governmental activities in the government-wide financial statements. However, unlike the government-wide financial statements, governmental funds financial statements focus on near-term inflows and outflows of spendable resources, as well as on balance of spendable resources available at the end of the fiscal year. In particular, committed, assigned and unassigned fund balances may serve as a useful measure of a government’s net resources available for spending at the end of the fiscal year. Such information may be useful in evaluating a government’s near-term financing requirements. Because the focus of governmental funds is narrower than that of the government-wide financial statements, it is useful to compare the information presented for governmental funds with similar information presented for governmental activities in the government-wide financial statements. By doing so, readers may better understand the long-term impact of the government’s near-term financing decisions. Both the governmental fund balance sheet and the governmental fund statement of revenues, expenditures, and changes in fund balances provide a reconciliation to facilitate this comparison between governmental funds and governmental activities. Anoka County maintains fourteen individual governmental funds. Information is presented separately in the governmental fund balance sheet and in the governmental fund statement of revenues, expenditures, and changes in fund balances for the General Fund, the Road and Bridge and Human Services Special Revenue Funds, the Debt Service Fund and the Capital Projects Fund, all of which are considered major governmental funds. Data from the other nine funds are combined into a single, aggregated presentation. Individual fund data for each of these nonmajor governmental funds is provided in the form of combining statements elsewhere in this report. Anoka County adopts annual appropriated budgets for the General Fund, and the Road and Bridge, Human Services, County Library, Parks and Recreation, Cooperative Extension, Law Library, Regional Railroad Authority, and Housing and Redevelopment Authority Special Revenue Funds. Budgetary comparison schedules have been provided to demonstrate compliance with these budgets. The basic governmental fund financial statements can be found on pages 18 to 21 of this report. Proprietary funds. Anoka County maintains two different types of proprietary funds. Enterprise funds report the same functions presented as business-type activities in the government-wide financial statements. Anoka County uses an enterprise fund to account for its Aquatic Center. Internal service funds are an accounting device used to accumulate and allocate costs internally among Anoka County’s various functions. Anoka County uses an internal service fund to account for its pooled insurance operations. These services benefit governmental functions, and have been allocated to governmental activities in the government-wide financial statements. Proprietary funds provide the same type of information as the government-wide financial statements, only in more detail. Bunker Beach Aquatic Center is considered a major proprietary fund of Anoka County. The basic proprietary fund financial statements can be found on pages 22 to 24 of this report. Fiduciary funds. Fiduciary funds account for resources held for the benefit of parties outside the government. Anoka County reports two fiduciary funds. The Other Postemployment Benefits Trust Fund is used to report contributions to an irrevocable trust fund and other postemployment benefits (OPEB) activity. The Agency Fund is used to report activity for programs that Anoka County acts as a fiscal agent. Fiduciary funds are not reflected in the government-wide financial statements because the resources of those funds are not available to support Anoka County’s own programs. The accounting used for fiduciary funds is much like that used for proprietary funds. The basic fiduciary fund financial statement can be found on pages 25 and 26 of this report. Notes to the financial statements. The notes provide additional information that is essential to a full understanding of the data provided in the government-wide and fund financial statements. The notes to the financial statements can be found on pages 27 to 56 of this report. Other information. In addition to the basic financial statements and accompanying notes, this report also presents other information, including: a) required supplementary information, other than Management’s Discussion and Analysis (MD&A), that includes budgetary comparison schedules, which can be found on pages 58 to 61; b) combining and individual fund statements referred to earlier in connection with nonmajor governmental funds, which can be found on pages 67 to 74 of this report; c) the Statement of Changes in Assets and Liabilities for the Agency 6 ---PAGE BREAK--- Unaudited Fund, which can be found on page 75; and d) Other Supplementary Information, including schedules on various financial aspects of the County, which can be found on pages 78 to 88. Government-wide Financial Analysis As noted earlier, net position may serve over time as a useful indicator of a government’s financial position. In the case of Anoka County, assets exceeded liabilities by $659 million at the close of the most recent fiscal year. 2012 2011 2012 2011 2012 2011 Current and other assets 227,948 $ 233,984 $ 741 $ 572 $ 228,689 $ 234,556 $ Capital assets 720,573 674,747 5,877 6,105 726,450 680,852 Total assets 948,521 908,731 6,618 6,677 955,139 915,408 Long-term liabilities outstanding 237,844 226,344 12 14 237,856 226,358 Other liabilities 58,578 66,307 5 16 58,583 66,323 Total liabilities 296,422 292,651 17 30 296,439 292,681 Net position: Net investment in capital assets 588,085 543,248 5,877 6,105 593,962 549,353 Restricted 44,102 41,068 - - 44,102 41,068 Unrestricted 19,912 31,764 724 542 20,636 32,306 Total net position 652,099 $ 616,080 $ 6,601 $ 6,647 $ 658,700 $ 622,727 $ Governmental activities Business-type activities Total Anoka County Net Position (in Thousands) By far the largest portion of Anoka County’s net position (90.2 percent) reflects its investment in capital assets land, buildings, infrastructure, machinery, and equipment), less any related outstanding debt used to acquire those assets. Anoka County uses these capital assets to provide services to citizens; consequently, these assets are not available for future spending. Although Anoka County’s investment in its capital assets is reported net of related debt, it should be noted that the resources needed to repay this debt must be provided from other sources, since the capital assets themselves cannot be used to liquidate these liabilities. An additional portion of Anoka County’s net position (6.7 percent) represents resources that are subject to external restrictions on how they may be used. The remaining balance of $20.6 million is unrestricted net position. The increase in net investment in capital assets portion of net position of $44.6 million is due to the completion of various highway projects. There was an increase of $3.0 million in restricted net position in connection with Anoka County’s governmental activities. The majority of the increase was the result of the net activity of the recorders compliance and waste processing programs. Additional details are outlined in the table, “Anoka County Changes in Net Position”, and the discussion that follows. Governmental activities. Governmental activities contributed $36 million of the increase in Anoka County’s total net position. Key elements of this increase are as follows: Anoka County’s capital assets increased by $45.8 million in 2012, including construction of various highway road projects and related land acquisitions, and the ongoing construction of a highway facility. Revenues from charges for services decreased by $2.1 million as a result of decrease in fees collected for solid waste management. Operating grants and contributions decreased by $15.4 million. Highway’s revenues decreased $16.6 million due to the State turnback of CSAH 14/Main Street to Anoka County during prior year. Community Health grants decreased $1.3 million. Regional Rail revenues increased by $3.4 million due to state reimbursement of expenses for the Ramsey station project. 7 ---PAGE BREAK--- Unaudited Capital grants and contributions increased by $1.5 million in 2012. There was a decrease of $3.6 million in highway planning and construction receipts due to the completion of various projects, a $1.4 million decrease in the Parks and Recreation department due to the completion of the Rice Creek trails and other projects, while there was an increase of $6.8 in economic development related to the construction of the Regional Rail Authority’s Ramsey station. Property tax revenue decreased by $6 million (4.2 percent) during the year and reflects the amounts collected for debt service payments, funding the 2012 budget, and an increase in the property tax collection rate. Anoka County had planned for a decrease in levy of $8.1 million. 2012 2011 2012 2011 2012 2011 Revenues: Program revenues Charges for services 39,297 $ 41,352 $ 1,607 $ 1,581 $ 40,904 $ 42,933 $ Operating grants and contributions 90,929 106,337 - - 90,929 106,337 Capital grants and contributions 16,619 15,104 - - 16,619 15,104 General revenues: Property and wheelage taxes 138,177 144,193 - - 138,177 144,193 Other 8,800 10,724 - - 8,800 10,724 Total revenues 293,822 317,710 1,607 1,581 295,429 319,291 Expenses: General government 37,773 42,211 - - 37,773 42,211 Public safety 59,024 60,178 - - 59,024 60,178 Highway and streets 34,442 32,159 - - 34,442 32,159 Human services 78,798 75,891 - - 78,798 75,891 Sanitation 4,521 4,733 - - 4,521 4,733 Culture and recreation 15,784 14,333 1,206 1,260 16,990 15,593 Conservation of natural resources 573 588 - - 573 588 Economic development 18,182 11,421 - - 18,182 11,421 Interest on long-term debt 9,153 9,243 - - 9,153 9,243 Total expenses 258,250 250,757 1,206 1,260 259,456 252,017 Increase (Decrease) in net position before transfers 35,572 66,953 401 321 35,973 67,274 Transfers 447 479 (447) (479) - - Increase (Decrease) in net position 36,019 67,432 (46) (158) 35,973 67,274 Net position - January 1 616,080 548,648 6,647 6,805 622,727 555,453 Net position -December 31 652,099 $ 616,080 $ 6,601 $ 6,647 $ 658,700 $ 622,727 $ Governmental activities Business-type activities Total Anoka County Changes in Net Position (in Thousands) In 2007 Anoka County implemented Governmental Accounting Standards Board (GASB), Statement No. 45, Accounting and Financial Reporting by Employers for Postemployment Benefits Other than Pensions. During 2012, the net Other Postemployment Benefits (OPEB) obligation was increased by $1.7 million. That increase was allocated among various functions of governmental activities. General government, public safety and human services each averaged a $470 thousand increase in OPEB expenses for 2012. The decrease in general government expenses (excluding annual OPEB costs) of $4.1 million reflects the transfer of a building for use by human services as well as the Voluntary Separation Program (VSP) offered to County employees. The VSP required vacant positions to stay open for two months, creating sizeable salary savings. Public safety expenses (excluding OPEB) were down $851 thousand primarily due to the results of the Voluntary Separation Program (VSP) offered to County employees. 8 ---PAGE BREAK--- Unaudited Highway expenses (excluding OPEB) increased $2.4 million primarily due to the planned expansion of several CSAH’s into four lane divided highways. Expenses for human services (excluding OPEB) increased $3.3 million as the result of a building transferred from general government for use by human service functions. Culture and recreation expenses increased by $1.5 million due to the capitalization of several assets during 2011 which reduced the functional expenses for that year. Economic development expenses increased by $6.8 million in 2012 due to the construction of the Ramsey rail station. Related grant revenues also increased. The graph below reflects the program expenses and program revenues. Property tax levy and County Program Aid are not exhibited at the program level, but rather as general revenues, which are not displayed in this graph. General revenues are a significant portion of general government, public safety, and interest on long-term debt, therefore the gap between the program expenses and revenues for those functions are greater than the gap between expenses and revenues for economic development and culture and recreation. These programs are funded in large part with grant revenues, requiring a smaller portion of total expenditures to be covered with general revenues. Sanitation and economic development received more outside revenue in 2012 than program expenses. These funds are used in future years for various capital projects. $0 $10,000 $20,000 $30,000 $40,000 $50,000 $60,000 $70,000 $80,000 $90,000 General government Public safety Highways and streets Human services Sanitation Culture and recreation Conservation of natural resources Economic development Interest on long‐term debt 2012 Expenses and Program Revenues Governmental Activities (Property tax levy and County Program Aid are not included) (in Thousands) Program Expenses Program Revenues Governmental Programs 9 ---PAGE BREAK--- Unaudited Charges for services 13.37% Operating grants and contributions 30.95% Capital grants and contributions 5.66% Property and wheelage taxes 47.03% Other* 2.99% 2012 Revenues by Source Governmental Activities * Other includes grants and contributions not restricted to specific programs. Business-type activities. Business-type activities decreased Anoka County’s net position by $46.2 thousand. The cooler than average summer of 2011 followed by a hotter than average summer in 2012 created a significant increase in operating income ($72 thousand) at the Aquatic Center. That increase was offset by required debt service transfers to other funds. ‐ 200 400 600 800 1,000 1,200 1,400 1,600 1,800 Aquatic Center Dollars Expenses Revenues 2012 Expenses and Revenues Business‐type Activities (in Thousands) Concessions 22.06% Charges for services 77.56% Miscellaneous 0.38% 2012 Revenues by Source Business‐type Activities 10 ---PAGE BREAK--- Unaudited Financial Analysis of the Government’s Funds As noted earlier, Anoka County uses fund accounting to ensure and demonstrate compliance with finance-related legal requirements. Governmental funds. The focus of Anoka County’s governmental funds is to provide information on near-term inflows, outflows, and balances of spendable resources. Such information is useful in assessing Anoka County’s financing requirements. In particular, committed, assigned, and unassigned fund balances may serve as a useful measure of a government’s net resources available for spending at the end of the fiscal year. As of the end of 2012, Anoka County’s governmental funds reported combined ending fund balances of $175.7 million. This is a $2.5 million increase from 2011. The operating funds, excluding capital projects and debt service funds, for the County reflect a $15.5 million decrease in fund balances. Approximately 65 percent, or $114 million of the combined fund balance total, represents a combination of committed, assigned and unassigned fund balance, which is available for spending at the County’s discretion. The remainder of fund balance is nonspendable or restricted to indicate that it is not available for new spending because it has already been committed: a) to cover inventories and prepaid items ($2.6 million); b) for amounts held by escrow agents, including highway right-of-way ($25.4 million); c) for funds held in an OPEB revocable trust account ($288 thousand); d) for grants, donations, and revolving loans received but not yet fully expended ($1.3 million); e) for debt service ($17.6 million); and f) for a variety of other statutorily restricted purposes ($14.0 million). The General Fund is the chief operating fund of Anoka County. At the end of the current fiscal year, combined assigned and unassigned fund balance of the General Fund was $33.4 million, while total fund balance was $47.2 million. As a measure of the General Fund’s liquidity, it may be useful to compare assigned and unassigned fund balance to total fund expenditures. Combined assigned and unassigned fund balance represents 33.8 percent of total General Fund expenditures. The fund balance of Anoka County’s major funds increased by $55.6 thousand as a result of planned actions of the County. The key factors contributing to this change in fund balance are as follows:  In anticipation of possible reductions in County Program Aid and market value tax credits from the State of Minnesota all County departments completed an exercise identifying potential budget cuts to offset future state changes.  Fund balance in the General Fund remained level. Revenues came in better than budgeted for both grants and charges for services. Public safety revenues were higher than budgeted for both bed space at the juvenile center and for federal prisoners. Property tax recording fees came in higher than the budgeted amount due to the increased number of documents processed for property sales. Corrections closed Pines school during 2012 resulting in $2.2 million budget savings in expenditures. Transfers out were made to other funds for future capital projects.  The Road and Bridge Fund showed a $19.2 million decrease in fund balance due to the spending of intergovernmental grant funds that were received during the prior year for the CSAH 14/Main Street project.  Human Services’ fund balance also remained level with budget savings transferred to other funds for future capital projects. The Debt Service Bund balance increased by $12.6 million due to the issuance of refunding bonds.  Fund balance in the Capital Projects Fund increased by $5.4 million due to transfers from other funds for anticipated capital projects in future years and the issuance of bonds ($13.88 million). The 2012 variance between the final budget and actual expenditures in the General Fund was a positive $2.0 million due to prudent spending in all areas of the budget. Proprietary funds. Anoka County’s proprietary funds provide the same type of information found in the government- wide financial statements, but in more detail. Unrestricted net position of the Aquatic Center Enterprise Fund at the end of the current year were $724 thousand. The Pooled Insurance Internal Service Fund has unrestricted net position of $1.8 million. General Fund Budgetary Highlights The difference between the original adopted budget and the final amended budget for expenditures in the General Fund was an approximate $2.1 million increase, due to additional grant funding received. 11 ---PAGE BREAK--- Unaudited Capital Asset and Debt Administration Capital assets. The total increase in Anoka County’s capital assets, net of depreciation, for the current fiscal year was $45.6 million. Investment in capital assets includes land, buildings and structures, improvements, machinery and equipment, park facilities, roads, bridges, and software. The total increase in Anoka County’s investment in capital assets for the current fiscal year was 6.7 percent. Major capital asset events during the current fiscal year included the following:  There were land purchases of $3.8 million for infrastructure.  Infrastructure values increased by $1.7 million resulting from the completion of several highway reconstruction projects.  The $41.9 million increase in construction in progress reflects the current spending for a segment of the CSAH 14/Main Street infrastructure project and the highway facility construction. 2012 2011 2012 2011 2012 2011 Land 194,081 $ 190,261 $ - $ - $ 194,081 $ 190,261 $ Buildings and structures 148,716 149,915 4,451 4,560 153,167 154,475 Improvements other than buildings 12,321 11,463 775 845 13,096 12,308 Machinery and equipment 18,094 18,941 651 700 18,745 19,641 Infrastructure 232,775 231,069 - - 232,775 231,069 Software 3,673 4,055 - - 3,673 4,055 Construction in progress 110,913 69,043 - - 110,913 69,043 Total 720,573 $ 674,747 $ 5,877 $ 6,105 $ 726,450 $ 680,852 $ Governmental activities Business-type activities Total Anoka County Capital Assets (net of depreciation, in thousands) Additional information on Anoka County’s capital assets can be found in note 3.A.3 on pages 37 and 38 of this report. Long-term debt. At the end of the current fiscal year, Anoka County had total bonded debt outstanding of $224.2 million. Of this amount, $183.9 million comprises debt backed by the full faith and credit of the County and $40.3 million represents bonds secured solely by specified revenue sources, which are currently general obligations bonds supported by revenues. 2012 2011 General obligation bonds and notes 173,750 $ 173,460 $ Lease purchase obligations 10,150 10,874 General obligation bonds supported by revenues 40,290 30,475 Total 224,190 $ 214,809 $ Governmental activities Anoka County Outstanding Debt General Obligation and Revenue Bonds (in Thousands) 12 ---PAGE BREAK--- Unaudited Anoka County’s total debt increased by $9.4 million (4.4 percent) during the current fiscal year. This is the net result of debt retirements totaling $19.7 million, including partial defeasance of three bonds ($5.7 million), and new debt issuances of $29.1 million. New general obligation debt includes bonds for $18.2 million. The bonds supported highway projects for CSAH 17, CSAH 116, and the highway facility expansion. New lease revenue obligation bonds of $10.9 million refund debt for the ice arena facility. State statutes limit the amount of general obligation debt a governmental entity may issue to three percent of its total estimated market value. The current debt limitation for Anoka County is $724.5 million. The current general debt obligation is $165.8 million, or approximately 22.9 percent of the general obligation debt limit allowed. Additional information on Anoka County’s long-term debt can be found in the Notes to the Financial Statements, note 3.C.6 on pages 44 to 49 of this report. Economic Factors and Next Year’s Budgets and Rates  Inflationary trends in the region compare favorably to national indices.  Anoka County ranks fourth in size of Minnesota Counties. These and other factors were considered in preparing Anoka County’s budget for the 2013 fiscal year. During the current fiscal year, the total fund balance in the major governmental funds increased by $55.7 thousand. Debt service and capital project funds comprise $77.2 million of the total spendable fund balance to be used for future debt payments and completion of current capital projects. It is likely the Minnesota State Legislature will make further cuts to County Program Aid and several programs and services the County provides. The Anoka County Financial Policies delegate authority to the Division Manager of Finance and Central Services to assign fund balance for a specific purpose to be spent in future years. Request for Information This financial report is designed to provide a general overview of Anoka County’s finances for all those with an interest in the County’s finances. Questions concerning any of the information provided in this report or requests for additional financial information should be addressed to Cevin Petersen, Division Manager, Finance and Central Services, Anoka County, 2100 3rd Avenue, Suite 300, Anoka, MN 55303. You may also contact us via email at [EMAIL REDACTED] or visit our website at www.anokacounty.us. 13 ---PAGE BREAK--- ANOKA COUNTY ANOKA, MINNESOTA This page left blank intentionally. ---PAGE BREAK--- BASIC FINANCIAL STATEMENTS ---PAGE BREAK--- EXHIBIT 1 Governmental Activities Business-Type Activities Total Assets Cash, cash equivalents, and pooled investments 161,809,063 $ 740,560 $ 162,549,623 $ Cash and investments with escrow agents 25,447,093 - 25,447,093 Investments with trust account 288,080 - 288,080 Delinquent taxes receivable 3,782,411 - 3,782,411 Accounts receivable, net of allowance for doubtful accounts 2,512,733 - 2,512,733 Accrued interest receivable 594,130 - 594,130 Land held for resale 558,440 - 558,440 Loan receivable Due within one year 88,901 - 88,901 Due in more than one year 3,032,325 - 3,032,325 Leases receivable Due within one year 1,179,943 - 1,179,943 Due in more than one year 12,321,074 - 12,321,074 Due from other governments 10,605,079 - 10,605,079 Inventories 2,508,015 - 2,508,015 Prepaid items 122,498 - 122,498 Deferred charges 3,098,476 - 3,098,476 Capital assets not being depreciated: Land 194,080,612 - 194,080,612 Construction in progress 110,912,807 - 110,912,807 Capital assets, net of accumulated depreciation: Buildings and structures 148,716,238 4,451,041 153,167,279 Improvements other than buildings 12,321,481 775,555 13,097,036 Machinery and equipment 18,094,276 650,717 18,744,993 Infrastructure 232,774,564 - 232,774,564 Software 3,673,258 - 3,673,258 Total Assets 948,521,497 6,617,873 955,139,370 Liabilities Accounts payable 5,987,907 104 5,988,011 Salaries payable 5,857,853 4,750 5,862,603 Contracts payable 4,854,513 - 4,854,513 Due to other governments 2,736,914 - 2,736,914 Advances from other governments 1,888,320 - 1,888,320 Matured interest payable 3,520,331 - 3,520,331 Unearned revenue 16,555,198 - 16,555,198 Noncurrent Liabilities: Due within one year Bonds and notes payable 16,473,997 - 16,473,997 Compensated absences 421,420 583 422,003 Outstanding claims payable 257,626 - 257,626 Capital leases payable 23,875 - 23,875 Due in more than one year Bonds and notes payable 212,059,637 - 212,059,637 Compensated absences 8,006,978 11,082 8,018,060 Outstanding claims payable 805,338 - 805,338 Capital leases payable 29,091 - 29,091 Other postemployment benefits (OPEB) liability 16,943,102 - 16,943,102 Total Liabilities 296,422,100 16,519 296,438,619 Net Position Net investment in capital assets 588,085,098 5,877,313 593,962,411 Restricted for: Capital projects 328,249 - 328,249 Debt service 24,817,693 - 24,817,693 General government 5,964,412 - 5,964,412 Public safety 1,367,378 - 1,367,378 Highway 3,461,023 - 3,461,023 Sanitation 6,747,120 - 6,747,120 Culture and recreation 332,177 - 332,177 Conservation of natural resources 54,766 - 54,766 Economic development 1,029,513 - 1,029,513 Unrestricted 19,911,968 724,041 20,636,009 Total net position 652,099,397 $ 6,601,354 $ 658,700,751 $ ANOKA COUNTY ANOKA, MINNESOTA STATEMENT OF NET POSITION DECEMBER 31, 2012 Primary Government The notes to the financial statements are an integral part of this statement. 16 ---PAGE BREAK--- EXHIBIT 2 Functions/Programs Expenses Charges for Services Operating Grants and Contributions Capital Grants and Contributions Governmental Activities Business-Type Activities Total Primary Government: Governmental activities: General government 37,772,485 $ 9,067,757 $ 4,121,144 $ - $ (24,583,584) $ - $ (24,583,584) $ Public safety 59,024,039 16,277,648 8,377,235 - (34,369,156) - (34,369,156) Highways and streets 34,442,191 235,456 24,869,031 7,821,480 (1,516,224) - (1,516,224) Human services 78,798,325 4,746,215 40,144,544 - (33,907,566) - (33,907,566) Sanitation 4,521,419 4,211,448 1,091,171 - 781,200 - 781,200 Culture and recreation 15,783,949 2,460,210 1,098,690 1,988,678 (10,236,371) - (10,236,371) Conservation of natural resources 573,117 47,127 12,000 - (513,990) - (513,990) Economic development 18,181,810 2,250,985 11,214,814 6,808,889 2,092,878 - 2,092,878 Interest expense and fiscal charges on long-term debt 9,152,835 - - - (9,152,835) - (9,152,835) Total governmental activities 258,250,170 39,296,846 90,928,629 16,619,047 (111,405,648) - (111,405,648) Business-type activities: Aquatic center 1,206,089 1,607,431 - - - 401,342 401,342 Total primary government 259,456,259 $ 40,904,277 $ 90,928,629 $ 16,619,047 $ General Revenues: Property taxes collected for general purposes 117,023,562 - 117,023,562 Property taxes collected for debt service 19,765,144 - 19,765,144 Wheelage tax collected for highways and streets 1,388,677 - 1,388,677 Unrestricted investment earnings 3,242,169 - 3,242,169 Miscellaneous 5,557,569 - 5,557,569 Transfers 447,517 (447,517) - Total general revenues and transfers 147,424,638 (447,517) 146,977,121 Change in net position 36,018,990 (46,175) 35,972,815 Net position--January 1 616,080,407 6,647,529 622,727,936 Net position--December 31 652,099,397 $ 6,601,354 $ 658,700,751 $ The notes to the financial statements are an integral part of this statement. Primary Government ANOKA COUNTY ANOKA, MINNESOTA STATEMENT OF ACTIVITIES FOR THE YEAR ENDED DECEMBER 31, 2012 Program Revenues Net (Expense) Revenue and Changes in Net Position 17 ---PAGE BREAK--- EXHIBIT 3 Other Total General Road and Human Debt Capital Governmental Governmental Fund Bridge Services Service Projects Funds Funds Assets Cash and pooled investments 45,225,669 $ 6,556 $ 28,318,563 $ 17,300,368 $ 40,015,052 $ 28,117,613 $ 158,983,821 $ Cash and investments with escrow agents - 3,461,023 - 21,545,439 - 440,631 25,447,093 Investments with trust account 288,080 - - - - - 288,080 Delinquent taxes receivable 1,511,368 269,234 919,773 600,966 55,108 425,962 3,782,411 Accounts receivable, net of allowance for doubtful accounts 1,149,357 175,801 329,842 289,657 - 567,454 2,512,111 Accrued interest receivable 504,045 - - 90,085 - - 594,130 Land held for resale - - - - - 558,440 558,440 Loan receivable 330,039 - - - - 2,791,187 3,121,226 Leases receivable 13,501,017 - - - - - 13,501,017 Due from other funds 6,057,000 - - - - - 6,057,000 Due from other governments 2,818,692 407,133 5,408,084 - - 1,971,170 10,605,079 Advances to other funds - - - - 210,000 - 210,000 Inventories - 2,474,207 - - - 33,808 2,508,015 Prepaid items 115,221 - 7,277 - - - 122,498 Total Assets 71,500,488 6,793,954 34,983,539 39,826,515 40,280,160 34,906,265 228,290,921 - - - Liabilities and Fund Balances Liabilities Accounts payable 2,727,347 466,390 2,077,785 2,525 14,392 698,515 5,986,954 Salaries payable 3,725,191 306,736 1,511,126 - - 314,800 5,857,853 Contracts payable 238,647 1,958,460 - - 1,895,891 761,515 4,854,513 Due to other funds - 6,025,000 - - - 32,000 6,057,000 Due to other governments 1,018,493 1,518,500 69,168 - 36,449 83,112 2,725,722 Advances from other funds - - - - - 210,000 210,000 Advances from other governments - 1,888,320 - - - - 1,888,320 Matured interest payable - - - 99,611 - - 99,611 Deferred revenue 16,621,744 522,827 1,795,637 600,966 59,351 5,359,948 24,960,473 Total Liabilities 24,331,422 12,686,233 5,453,716 703,102 2,006,083 7,459,890 52,640,446 Fund Balances Nonspendable in (Note General Fund 115,221 - - - - - 115,221 Special revenue funds - 2,474,207 7,277 - - 33,808 2,515,292 Capital Projects Fund - - - - 210,000 - 210,000 Restricted in (Note General Fund 13,689,641 - - - - - 13,689,641 Special revenue funds - 3,461,023 - - - 1,805,725 5,266,748 Debt Service Fund - - - 39,123,413 - - 39,123,413 Capital Projects Fund - - - - 328,249 - 328,249 Committed in (Note Special revenue funds - - - - - 6,722,520 6,722,520 Assigned in (Note General Fund 4,659,222 - - - - - 4,659,222 Special revenue funds - - 29,522,546 - - 18,884,322 48,406,868 Capital Projects Fund - - - - 37,735,828 - 37,735,828 Unassigned 28,704,982 (11,827,509) - - - - 16,877,473 Total Fund Balances 47,169,066 (5,892,279) 29,529,823 39,123,413 38,274,077 27,446,375 175,650,475 Total Liabilities and Fund Balances 71,500,488 $ 6,793,954 $ 34,983,539 $ 39,826,515 $ 40,280,160 $ 34,906,265 $ 228,290,921 $ ANOKA COUNTY ANOKA, MINNESOTA BALANCE SHEET GOVERNMENTAL FUNDS DECEMBER 31, 2012 The notes to the financial statements are an integral part of this statement. 18 ---PAGE BREAK--- EXHIBIT 4 Total fund balances for governmental funds (Exhibit 3) 175,650,475 $ Total net position reported for governmental activities in the statement of net position is different because: Capital assets used in governmental activities are not financial resources and therefore are not reported in the funds. 720,573,236 Deferred charges are not available to pay current expenditures and, therefore, are not deferred in the funds. 3,098,476 An internal service fund is used by the County to charge the cost of insurance to the individual funds. The assets and liabilities of the internal service fund are included in governmental activities in the statement of net position. 1,750,755 Long-term liabilities are not due and payable in the current period and accordingly are not reported as fund liabilities. Bonds and notes payable - net of premium and discount (228,533,634) $ Compensated absences (8,428,398) Other postemployment benefits (16,943,102) Capital leases payable (52,966) Total long term liabilities (253,958,100) Matured interest payable is not due and payable in the current period and therefore, is not reported on the fund statements. Matured interest payable reported on Exhibit 1 (3,520,331) $ Matured interest payable reported on Exhibit 3 99,611 (3,420,720) Revenues in the statement of activities that do not provide current financial resources are not reported as revenues in the funds. 8,405,275 Net position of governmental activities (Exhibit 1) 652,099,397 $ TO THE STATEMENT OF NET POSITION DECEMBER 31, 2012 ANOKA COUNTY ANOKA, MINNESOTA RECONCILIATION OF THE GOVERNMENTAL FUNDS BALANCE SHEET The notes to the financial statements are an integral part of this statement. 19 ---PAGE BREAK--- EXHIBIT 5 Other Total General Road and Human Debt Capital Governmental Governmental Fund Bridge Services Service Projects Funds Funds Revenues Taxes 50,675,280 $ 8,502,578 $ 30,314,003 $ 19,785,333 $ 2,779,754 $ 13,480,605 $ 125,537,553 $ Licenses and permits 239,855 72,982 969,904 - - 2,475 1,285,216 Intergovernmental 20,380,831 33,739,222 42,848,850 169,067 155,835 20,173,570 117,467,375 Charges for services 28,357,490 73,235 2,191,974 - - 1,852,748 32,475,447 Fines and forfeits 4,458 - - - - 667,248 671,706 Investment income 2,769,767 25,346 16,868 62,430 16,775 29,902 2,921,088 Miscellaneous 5,187,702 298,430 2,938,494 1,203,510 125,314 4,425,631 14,179,081 Total Revenues 107,615,383 42,711,793 79,280,093 21,220,340 3,077,678 40,632,179 294,537,466 Expenditures Current General government 37,374,415 - - - 2,667,251 395,870 40,437,536 Public safety 56,277,147 - - - 92,625 8,305 56,378,077 Highways and streets - 63,455,600 - - 5,763 - 63,461,363 Human services 343,567 - 73,902,713 - 55,842 - 74,302,122 Sanitation 4,509,247 - - - - - 4,509,247 Culture and recreation 194,255 - - - - 15,119,957 15,314,212 Conservation of natural resources 148,992 - - - - 421,294 570,286 Economic development - - - - - 17,733,747 17,733,747 Debt Service Principal retirement - - - 19,703,850 - 22,916 19,726,766 Interest - - - 8,516,865 - 2,949 8,519,814 Bond issuance costs - - - 233,014 198,722 - 431,736 Administrative charges - - - 56,333 750 - 57,083 Capital Outlay General government - - - - 3,115,423 - 3,115,423 Public safety - - - - 382,493 - 382,493 Highways and streets - - - - 16,878,884 - 16,878,884 Human services - - - - 227,186 - 227,186 Culture and recreation - - - - 187,438 - 187,438 Intergovernmental Highways and streets - 27,344 - - - - 27,344 Economic development - - - - - 68,981 68,981 Total Expenditures 98,847,623 63,482,944 73,902,713 28,510,062 23,812,377 33,774,019 322,329,738 Excess of Revenues Over (Under) Expenditures 8,767,760 (20,771,151) 5,377,380 (7,289,722) (20,734,699) 6,858,160 (27,792,272) Other Financing Sources (Uses) Transfers in 694,934 1,700,000 50,002 4,425,321 10,902,890 551,089 18,324,236 Transfers out (8,893,937) (82,000) (4,763,948) - (192,865) (4,943,969) (18,876,719) Bonds issued - - - - 13,880,000 - 13,880,000 Refunding bonds issued - - - 15,205,000 - - 15,205,000 Premium on bonds - - - 228,808 1,515,351 - 1,744,159 Total Other Financing Sources (Uses) (8,199,003) 1,618,000 (4,713,946) 19,859,129 26,105,376 (4,392,880) 30,276,676 Net Change in Fund Balances 568,757 (19,153,151) 663,434 12,569,407 5,370,677 2,465,280 2,484,404 Fund Balances - January 1 46,600,309 13,224,424 28,866,389 26,554,006 32,903,400 24,985,823 173,134,351 Increase (decrease) in inventories - 36,448 - - - (4,728) 31,720 Fund Balances - December 31 47,169,066 $ (5,892,279) $ 29,529,823 $ 39,123,413 $ 38,274,077 $ 27,446,375 $ 175,650,475 $ FOR THE YEAR ENDED DECEMBER 31, 2012 ANOKA COUNTY ANOKA, MINNESOTA STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES GOVERNMENTAL FUNDS The notes to the financial statements are an integral part of this statement. 20 ---PAGE BREAK--- EXHIBIT 6 Amounts reported for governmental activities in the statement of activities are different because: Net change in fund balances - total governmental funds (Exhibit 5) 2,484,404 $ Capital outlays are reported as expenditures in governmental funds. However, in the statement of activities, the cost of capital assets is allocated over their estimated useful lives as depreciation expense. Expenditures for general capital assets, infrastructure, and other related capital assets adjustment 63,187,714 $ Current year depreciation (15,900,158) 47,287,556 The issuance of long-term debt bonds, leases) provides current financial resources to governmental funds, while the repayment of principal of long-term debt consumes the current financial resources of governmental funds. Neither transaction, however, has any effect on net position. Also, governmental funds report the effect of issuance costs, premiums, discounts, and similar items when debt is first issued, whereas these amounts are deferred and amortized in the statement of activities. This amount is the net effect of these differences in the treatment of long-term debt and related items. Debt issued: Refunding general obligation (GO) bonds supported by revenues $ (10,885,000) General obligation (GO) bonds and notes (13,880,000) Refunding general obligation (GO) bonds (4,320,000) Principal repayments: Debt service principal retirement 19,726,766 Issuance costs, discounts, and premiums (1,312,423) Current year amortization of issuance costs, discounts, and premiums 105,294 (10,565,363) The effect of various miscellaneous transactions involving capital assets sales, trade-ins, transfers and retirements) is to decrease net position. (1,461,735) Revenues in the statement of activities that do not provide current financial resources are not reported as revenue in the funds. Earned but unavailable portion of deferred revenue reported in the governmental funds net of current year delinquent tax collections. Deferred revenue - unavailable - December 31 $ 8,405,275 Deferred revenue - unavailable - January 1 (9,526,990) (1,121,715) Some expenses reported in the statement of activities do not require the use of current financial resources and, therefore, are not reported as expenditures in governmental funds. This includes the change in compensated absences ($218,150), change in interest payable (-$229,988), and changes in inventories ($31,720). 19,882 Current year net change in other postemployment benefits (OPEB) obligation. (1,699,817) An internal service fund is used to charge the insurance costs to the individual funds. The increase in net position of the internal service fund is reported in the government-wide statement of activities. 1,075,778 Changes in net position of governmental activities (Exhibit 2) 36,018,990 $ FOR THE YEAR ENDED DECEMBER 31, 2012 ANOKA COUNTY ANOKA, MINNESOTA RECONCILIATION OF THE STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES OF GOVERNMENTAL FUNDS TO THE STATEMENT OF ACTIVITIES The notes to the financial statements are an integral part of this statement. 21 ---PAGE BREAK--- EXHIBIT 7 Business-Type Activities Governmental Activities Aquatic Center Enterprise Fund Pooled Insurance Internal Service Fund Assets Current Assets: Cash, cash equivalents, and pooled investments 740,560 $ 2,825,242 $ Accounts receivable - 622 Total current assets 740,560 2,825,864 Noncurrent Assets: Capital assets 8,149,779 - Less: accumulated depreciation (2,272,466) - Total capital assets (net of accumulated depreciation) 5,877,313 - Total noncurrent assets 5,877,313 - Total Assets 6,617,873 2,825,864 Liabilities Current Liabilities: Accounts payable 104 953 Salaries payable 4,750 - Due to other governments - 11,192 Compensated absences 583 - Outstanding claims payable - 257,626 Total current liabilities 5,437 269,771 Noncurrent Liabilities: Compensated absences 11,082 - Outstanding claims payable - 805,338 Total noncurrent liabilities 11,082 805,338 Total Liabilities 16,519 1,075,109 Net Position Investment in capital assets 5,877,313 - Unrestricted (deficit) 724,041 1,750,755 Total Net Position 6,601,354 $ 1,750,755 $ DECEMBER 31, 2012 ANOKA COUNTY ANOKA, MINNESOTA STATEMENT OF NET POSITION PROPRIETARY FUNDS The notes to the financial statements are an integral part of this statement. 22 ---PAGE BREAK--- EXHIBIT 8 Business-Type Activities Governmental Activities Aquatic Center Enterprise Fund Pooled Insurance Internal Service Fund Operating Revenues Charges for services 1,246,867 $ - $ Concessions 354,532 - Insurance fees - 642,358 Miscellaneous 6,032 7,129 Total Operating Revenues 1,607,431 649,487 Operating Expenses Personal services 526,857 - Other services and charges 229,356 - Supplies 214,660 - Professional services - 36,825 Insurance - 536,922 Depreciation 233,256 - Total Operating Expenses 1,204,129 573,747 Operating Income (Loss) 403,302 75,740 Nonoperating Revenues (Expenses) Investment income - 38 Loss on disposal of capital assets (1,960) - Total Nonoperating Revenues (Expenses) (1,960) 38 Net Income (Loss) Before Transfers and Contributions 401,342 75,778 Transfers and Contributions Transfers in 7,483 1,000,000 Transfers out (455,000) - Increase (Decrease) in Net Position (46,175) 1,075,778 Net position - January 1 6,647,529 674,977 Net position - December 31 6,601,354 $ 1,750,755 $ ANOKA COUNTY ANOKA, MINNESOTA STATEMENT OF REVENUES, EXPENSES, AND CHANGES IN FUND NET POSITION PROPRIETARY FUNDS FOR THE YEAR ENDED DECEMBER 31, 2012 The notes to the financial statements are an integral part of this statement. 23 ---PAGE BREAK--- EXHIBIT 9 Business-Type Activities Governmental Activities Aquatic Center Enterprise Fund Pooled Insurance Internal Service Fund Cash Flows from Operating Activities: Receipts from customers 1,610,286 $ 648,865 $ Payments to suppliers (455,714) (535,468) Payments to employees (527,861) - Net cash provided (used) by operating activities 626,711 113,397 Cash Flows from Noncapital Financing Activities: Transfer from other funds 7,483 1,000,000 Transfer to other funds (455,000) - Net cash provided (used) by noncapital and related financing activities (447,517) 1,000,000 Cash Flows from Capital and Related Financing Activities: Purchases of capital assets (7,481) - Cash Flows from Investing Activities: Interest received - 38 Net increase (decrease) in cash and cash equivalents 171,713 1,113,435 Cash and cash equivalents, January 1 568,847 1,711,807 Cash and cash equivalents, December 31 740,560 $ 2,825,242 $ Reconciliation of operating income to net cash provided (used) by operating activities: Net operating income (loss) 403,302 $ 75,740 $ Adjustments to reconcile net operating income (loss) to net cash provided (used) by operating activities: Depreciation 233,256 - (Increase) decrease in Accounts receivable 2,855 (622) Increase (decrease) in Accounts payable (96) 928 Increase (decrease) in Salaries payable 360 - Increase (decrease) in Contracts payable (10,000) - Increase (decrease) in Due to other governments (1,602) 4,244 Increase (decrease) in Compensated absences (1,364) - Increase (decrease) in Outstanding claims payable - 33,107 Total adjustments 223,409 37,657 Net cash provided (used) by operating activities 626,711 $ 113,397 $ Increase (Decrease) in Cash and Cash Equivalents ANOKA COUNTY ANOKA, MINNESOTA STATEMENT OF CASH FLOWS PROPRIETARY FUNDS FOR THE YEAR ENDED DECEMBER 31, 2012 The notes to the financial statements are an integral part of this statement. 24 ---PAGE BREAK--- EXHIBIT 10 Other Postemployment Benefits Agency Trust Fund Fund Assets Cash and pooled investments - $ 8,485,759 $ Investments, at fair value Index Funds 34,319,064 - Accounts receivable 900,000 6,382 Due from other governments - 990,100 Total Assets 35,219,064 9,482,241 Liabilities Accounts payable - 1,743,775 Due to other governments - 7,738,466 Total Liabilities - 9,482,241 $ Net Position Held in trust for postemployment benefits 35,219,064 $ DECEMBER 31, 2012 ANOKA COUNTY ANOKA, MINNESOTA STATEMENT OF FIDUCIARY NET POSITION FIDUCIARY FUNDS The notes to the financial statements are an integral part of this statement. 25 ---PAGE BREAK--- EXHIBIT 11 Other Postemployment Benefits Trust Fund Additions Employer contributions 1,270,000 $ Investment earnings 4,661,563 Less investment expense 2,856 Net investment earnings 4,658,707 Total Additions 5,928,707 Change in net position 5,928,707 Net position - January 1 29,290,357 Net position - December 31 35,219,064 $ ANOKA COUNTY ANOKA, MINNESOTA STATEMENT OF CHANGES IN FIDUCIARY NET POSITION OTHER POSTEMPLOYMENT BENEFITS TRUST FUND FOR THE YEAR ENDED DECEMBER 31, 2012 The notes to the financial statements are an integral part of this statement. 26 ---PAGE BREAK--- ANOKA COUNTY ANOKA, MINNESOTA NOTES TO THE FINANCIAL STATEMENTS DECEMBER 31, 2012 1. Summary of Significant Accounting Policies Anoka County was established May 23, 1857, and is an organized county having the powers, duties and privileges granted counties by Minn. Stat. ch. 373. Anoka County is governed by a seven-member board of commissioners elected from districts within the County for four-year terms. The Board is organized with a chair and vice-chair elected at the organizational meeting in January of each year. The County Board appoints the County Administrator for an indefinite term. The County Administrator has no vote in the decisions of the County Board. The County’s financial statements are prepared in accordance with generally accepted accounting principles (GAAP). The Governmental Accounting Standards Board (GASB) is responsible for establishing GAAP for state and local governments through its pronouncements (Statements and Interpretations). The more significant accounting policies established in GAAP and used by the County are discussed below. A. Financial Reporting Entity For financial reporting purposes, Anoka County has included all funds, organizations, agencies, boards, commissions, and authorities, and has considered all potential component units for which the County is financially accountable, and other organizations whose nature and the significance of their relationship with the County are such that exclusion would cause Anoka County's financial statements to be misleading or incomplete. The Governmental Accounting Standards Board has set forth criteria to be considered in determining financial accountability. These criteria include appointing a voting majority of an organization's governing body and the ability of the County to impose its will on that organization, or the potential for the organization to provide specific financial benefits to, or impose specific financial burdens on, the County. As required by generally accepted accounting principles, these financial statements present Anoka County (the primary government) and its component units. The component units discussed below are included in the County's reporting entity because of the significance of their operational or financial relationships with the County. See Note 4.B. for the description of a related organization. Blended Component Units Blended component units are entities, which are legally separate from the County, but are so intertwined that they are, in substance, the same as the County. They are reported as part of the primary government. The ANOKA COUNTY REGIONAL RAILROAD AUTHORITY is governed by a seven-member board consisting of the Anoka County Commissioners, and has the power to levy taxes, issue bonds, and enter into contracts. The Authority was established for the preservation and improvement of local rail service. Although it is legally separate from the County, the activity of the Regional Railroad Authority is included in the Anoka County reporting entity as the Regional Railroad Authority Special Revenue Fund and the Regional Railroad Authority Bond Debt Service Fund because the Authority's governing body is substantively the same as the governing body of Anoka County. Separate financial statements are not available for the Anoka County Regional Railroad Authority. The ANOKA COUNTY HOUSING AND REDEVELOPMENT AUTHORITY is governed by a seven-member board consisting of four of the seven Anoka County Commissioners and three appointed members, one of which is a former Anoka County Board member. The Authority has the power to levy taxes, issue bonds, and enter into contracts. The Authority was established to assist with the implementation of a redevelopment plan to promote economic development within Anoka County. Although it is legally separate from the County, the activity of the Housing and Redevelopment Authority is included in the Anoka County reporting entity as the Housing and Redevelopment Authority Special Revenue Fund and the Housing and Redevelopment Authority Bonds Debt Service Fund, because the Authority's governing body is substantively the same as the governing body of Anoka County. Separate financial statements are not available for the Anoka County Housing and Redevelopment Authority. B. Basic Financial Statements 1. Government-Wide Statements The government-wide financial statements the Statement of Net Position and the Statement of Activities) display information about the primary government and its component units. These statements include the financial activities of the overall County government, except for fiduciary activities. Eliminations have been made to minimize the double counting of internal activities. These activities are not eliminated in the process of consolidation. Governmental activities, which normally are supported by taxes and intergovernmental revenues, are reported separately from business-type activities, which rely to a significant extent on fees and charges to external parties for support. In the government-wide Statement of Net Position, both the governmental and business-type activities columns are presented on a consolidated basis by column, and are reported on a full accrual, economic resource basis, which recognizes all long-term assets and receivables as well as long-term debt and obligations. The County’s net position is reported in three parts—net investment in capital assets; restricted net position; and unrestricted net position. The County first utilizes restricted resources to finance qualifying activities. 27 ---PAGE BREAK--- ANOKA COUNTY ANOKA, MINNESOTA 1. Summary of Significant Accounting Policies B. Basic Financial Statements 1. Government-Wide Statements (Continued) The Statement of Activities demonstrates the degree to which the direct expenses of each function of the County’s governmental activities and business-type activity are offset by program revenues. Direct expenses are those that are clearly identifiable with a specific function or activity. Program revenues include 1) fees, fines, and charges paid by the recipients of goods, services, or privileges provided by a given function or activity and 2) grants and contributions that are restricted to meeting the operational or capital requirements of a particular function or activity. Revenues that are not classified as program revenues, including all taxes, are presented as general revenues. 2. Fund Financial Statements The fund financial statements provide information about the County’s funds, including its fiduciary funds and blended component units. Separate statements for each fund category—governmental, proprietary, and fiduciary—are presented. The emphasis of governmental and proprietary fund financial statements is on major individual governmental and enterprise funds, with each displayed as separate columns in the fund financial statements. All remaining governmental and enterprise funds are aggregated and reported as nonmajor funds. Proprietary fund operating revenues, such as charges for services, result from exchange transactions associated with the principal activity of the fund. Exchange transactions are those in which each party receives and gives up essentially equal values. Nonoperating revenues, such as subsidies and investment earnings, result from nonexchange transactions or incidental activities. Operating expenses for enterprise funds and internal service funds include services, supplies, insurance, and depreciation on capital assets. All revenue and expenses not meeting this definition are reported as non-operating revenues and expenses. The County reports the following major governmental funds: The General Fund is the general operating fund of the County and is used to account for all financial resources except those required to be accounted for in another fund. The Road and Bridge Special Revenue Fund accounts for operations of the County Highway Department, which constructs and maintains roads, bridges, road signals and signs, and other projects affecting the roadways. Financing comes primarily from intergovernmental revenue from the State and Federal Governments and an annual property tax levy. The Human Services Special Revenue Fund accounts for all costs of human services. This includes the cost of Economic Assistance programs, social and mental health services provided by the Human Services Division or purchased through contract, and the County’s support to the Community Action Program. Financing comes primarily from an annual property tax levy and intergovernmental revenue from the State and Federal Governments. The Debt Service Fund is used to account for the accumulation of resources for, and the payment of, principal, interest, and related costs of general long-term debt. The Capital Projects Fund is used to account for financial resources to be used for the acquisition, construction, or improvement of major capital facilities (other than those financed by Proprietary Funds). The County reports the following major enterprise fund: The Aquatic Center Fund is used to account for the operation and maintenance of the Bunker Beach Aquatic Center. Additionally, the County reports the following fund types: The Pooled Insurance Internal Service Fund accounts for the County’s self-insurance activities. The Trust Fund accounts for an irrevocable trust established for funding other postemployment benefits for eligible retired employees under a single employer defined benefit plan. The Agency Fund is used to account for assets held by the County as a trustee or agent for individuals, private organizations, other governments, or other funds. Agency funds are custodial in nature and do not involve measurement of results of operations. 28 ---PAGE BREAK--- ANOKA COUNTY ANOKA, MINNESOTA 1. Summary of Significant Accounting Policies (Continued) C. Measurement Focus and Basis of Accounting The government-wide and proprietary fund financial statements are reported using the economic resources measurement focus and the accrual basis of accounting. The fiduciary fund financial statements are reported using the accrual basis of accounting. Revenues are recorded when earned, and expenses are recorded when a liability is incurred, regardless of the timing of related cash flows. Property taxes are recognized as revenues in the year for which they are levied. Shared revenues are generally recognized in the period the appropriation goes into effect. Grants and similar items are recognized as revenue as soon as all eligibility requirements imposed by the provider have been met. Governmental fund financial statements are reported using the current financial resources measurement focus and the modified accrual basis of accounting. Revenues are recognized as soon as they are both measurable and available. Anoka County considers all revenues to be available if they are collected within 60 days after the end of the current period, except for reimbursement (expenditure driven) grants for which the period is 120 days. Property and other taxes, shared revenues, licenses, and interest are all considered to be susceptible to accrual. Expenditures are recorded when the related fund liability is incurred, except for principal and interest on general long-term debt, compensated absences, and claims and judgments, which are recognized as expenditures to the extent that they have matured. Proceeds of general long-term debt and acquisitions under capital leases are reported as other financing sources. When both restricted and unrestricted resources are available for use, it is the County’s policy to use restricted resources first, and then unrestricted resources as they are needed. D. Assets, Liabilities, and Net Position or Equity 1. Cash and Investments Anoka County maintains a cash and investment pool that is used essentially as a demand deposit account. This pool is available for use by all funds of the County and each fund type's portion of this pool is displayed on the Statement of Net Position within "Cash, cash equivalents, and pooled investments." Cash and cash equivalents are identified only for the purpose of the Statement of Cash Flows reporting by the proprietary funds. Pooled investments, which have the characteristics of demand deposits, are considered to be cash and cash equivalents on the Statement of Cash Flows. Pooled (in lieu of cash) investments are stated at fair value. Investment earnings are allocated to the Road and Bridge, Human Services, Job Training Center, and Regional Railroad Authority Special Revenue Funds, and to the Capital Projects Fund, based on cash balances set aside for specific purposes within those funds. Pursuant to Minn. Stat. § 385.07, investment earnings on unallocated cash and pooled investments are credited to the General Fund. Pooled investment earnings in the governmental funds, for 2012 were $2,921,088. (See Note 3.A.) Investments with escrow agents and trust accounts are stated at fair value. Investment earnings on cash and investments with escrow agents and investments in trust accounts are credited to the funds in which they are held. Anoka County invests in an external investment pool, the Minnesota Association of Governments Investing for Counties (MAGIC) Fund, which is created under a joint powers agreement pursuant to Minn. Stat. § 471.59. The MAGIC Fund is not registered with the SEC, but does operate in a manner consistent with Rule 2a-7 of the Investment Company Act of 1940. The investment in the pool is measured at the net asset value per share provided by the pool. Minn. Stat. § 118A.04 and 118A.05 authorize the following types of investments that are available to the County: a. Securities which are direct obligations or are guaranteed or insured issues of the United States, its agencies, its instrumentalities, or organizations created by an act of Congress, except mortgage-backed securities defined as "high risk" by Minn. Stat. § 118A.04, subd. 6. b. Mutual funds through shares of registered investment companies provided the mutual fund receives certain ratings depending on its investments. c. General obligations of the State of Minnesota and its municipalities; and in certain state agency and local obligations of Minnesota and other states provided such obligations have certain specified bond ratings by a national bond rating service. d. Bankers' acceptances issued by United States banks. e. Commercial paper issued by United States corporations or their Canadian subsidiaries that is rated in the highest quality category by two nationally recognized ratings agencies and matures in 270 days or less. f. With certain restrictions, as identified by statutes, repurchase agreements, securities lending agreements, joint powers investment trusts, and guaranteed investment contracts. 29 ---PAGE BREAK--- ANOKA COUNTY ANOKA, MINNESOTA 1. Summary of Significant Accounting Policies D. Assets, Liabilities, and Net Position or Equity (Continued) 2. Receivables and Payables Activity between funds that are representative of lending/borrowing arrangements outstanding at the end of the fiscal year are referred to as either “due to/from other funds” the current portion of interfund loans) or “advances to/from other funds” the non-current portion of interfund loans). Any residual balances outstanding between the governmental activities and business-type activities are reported in the government-wide financial statements as “internal balances.” All receivables, including those of the blended component units are shown net of an allowance for doubtful accounts. Property Taxes Property tax levies are set by the County Board in December each year following a public "truth in taxation" hearing. The levy is reduced by State paid aids referred to as County Program Aid. The remaining net levy is spread on all taxable real and personal property. Taxes which remain unpaid at December 31 are delinquent. Such taxes become a lien on January 1 and are recorded as receivables by the County at that date. No allowance for uncollectible taxes has been provided because such amounts are not expected to be material. Revenues are accrued and recognized in the year collectible, net of delinquencies. Property taxes are payable in two installments for real estate and one payment for personal property. The dates are listed below: Real Estate - first half - May 15 - second half - October 15 Personal Property - one payment - May 15 Loans Loans may be made to private enterprises or individuals as per the parameters of the specific programs. The Community Development Block Grant Special Revenue Fund provides rehabilitation loans to individuals. The General Fund has forfeited tax sale contracts for repurchase and a loan for temporary delay of rental revenues. Leases The County has issued lease revenue obligation debt for organizations. A long term lease exists between the County and the organization which matches the term of the debt. 3. Land Held for Resale Property is acquired by the Community Development Block Grant (CDBG) for subsequent resale for redevelopment purposes and not as an investment program. In order to encourage development, the land is often resold at prices substantially lower than CDBG’s cost and cannot be sold for more than expended. Land Held for Resale is reported as an asset at the lower of cost or net realizable value in the fund that acquired it. Deferred revenue of an equal amount is also reported on the respective governmental fund balance sheet. In governmental funds, in order to satisfy federal grant reporting requirements, land acquired is reported as an expenditure in the amount of the acquisition cost and as federal revenue for the same amount. When the land is subsequently sold, miscellaneous program income is recognized for the sale amount. Future drawdowns from the federal government for reimbursement of expenditures incurred are adjusted by program income available at that date. 4. Inventories and Prepaid Items Inventory: Inventory is valued at cost, using the first-in, first-out (FIFO) method. The inventory in the Road and Bridge Special Revenue Fund consists of expendable supplies held for consumption. The inventory in the Parks and Recreation Special Revenue Fund consists of items held for resale. The cost of the inventory is recorded as an expenditure in the governmental fund statements at the time individual inventory items are purchased. Reported inventories are equally offset by nonspendable fund balance to indicate that they do not constitute “available spendable resources.” Inventories at the government-wide level are recorded as expenses when consumed. Prepaid Items: Certain payments to vendors reflect costs applicable to future accounting periods and are recorded as prepaid items in both government-wide and fund financial statements. Prepaid items are equally offset by nonspendable fund balance to indicate that they do not constitute “available spendable resources.” Prepaid items are expensed using the consumption method for both the government-wide and fund financial statements. 5. Capital Assets Capital assets, which include property, plant, equipment, infrastructure assets (e.g. roads, bridges, sidewalks, and similar items), and intangible assets are reported in the applicable governmental or business-type activities column in the government-wide financial statements. Capital assets, excluding infrastructure, are defined by the government as assets with an initial, individual cost of more than $5,000 and an estimated useful life in excess of three years. Infrastructure assets are capitalized when the cost of the individual items or projects are greater than $100,000. Such assets are recorded at historical cost or estimated historical cost if purchased or constructed. Donated capital assets are recorded at estimated fair market value at the date of donation. The costs of normal maintenance and repairs that do not add to the value of the asset or materially extend assets lives are not capitalized. 30 ---PAGE BREAK--- ANOKA COUNTY ANOKA, MINNESOTA 1. Summary of Significant Accounting Policies D. Assets, Liabilities, and Net Position or Equity 5. Capital Assets (Continued) Major outlays for capital assets and improvements are capitalized as projects are constructed. Interest incurred during the construction phase of capital assets of business-type activities is included as part of the capitalized value of the assets constructed. During the current period, the County did not have any capitalized interest. Property, plant and equipment of the primary government, as well as the component units, is depreciated using the straight line method over the following estimated useful lives: Buildings 50 years Infrastructure 50 years Land improvements 20 years Furniture and fixtures 20 years Machinery and tools 15 years Intangible assets 12 years Office machines and equipment 10 years Licensed vehicles 8 years Unmarked vehicles 5 years Marked vehicles 3 years Information and technology management equipment 5 years 6. Compensated Absences The liability for compensated absences reported in the financial statements consists of unpaid, accumulated annual vacation and sick leave and flexible time off balances. The liability has been calculated using the vesting method, in which leave amounts for both employees who currently are eligible to receive termination payments and other employees who are expected to become eligible in the future to receive such payments upon termination are included. Compensated absences are accrued when incurred in the government-wide and proprietary fund financial statements. A liability for these amounts is reported in the governmental funds only if they have matured, for example, as a result of employee resignations and retirements. 7. Deferred Revenue / Unearned Revenue Governmental funds report deferred revenue in connection with receivables for revenues that are not considered to be available to liquidate liabilities of the current period. Governmental funds and government-wide financial statements defer revenue recognition in connection with resources that have been received, but not yet earned. 8. Long-Term Obligations In the government-wide financial statements, and proprietary fund types in the fund financial statements, long-term debt and other long-term obligations are reported as liabilities in the applicable governmental activities, business-type activities, or proprietary fund type statement of net position. Bond premiums and discounts are deferred and amortized over the life of the bonds using the straight line method. Bonds payable are reported net of the applicable bond premium or discount. Bond issuance costs are reported as deferred charges and amortized over the term of the related debt. In the fund financial statements, governmental fund types recognize bond premiums and discounts, as well as bond issuance costs, during the current period. The face amount of the debt issued is reported as other financing sources. Premiums received and discounts taken on debt issuances are reported as other financing sources or uses. Issuance costs, whether or not withheld from the actual debt proceeds received, are reported as debt service expenditures. Because the rates of interest paid on tax exempt debt are normally lower than those paid on taxable securities, it is sometimes possible for state and local governments to profit from this disparity in interest rates by temporarily reinvesting unexpended proceeds of lower interest tax exempt borrowings in higher yielding taxable securities. When the proceeds of tax-exempt debt are reinvested in this manner, the profits realized are referred to as “arbitrage earnings”, which must be rebated to the federal government. 9. Fund Equity Classification of Net Position Net position in the government-wide and proprietary fund financial statements are classified in the following categories: 1. Net investment in capital assets: the amount of net position representing capital assets net of accumulated depreciation and reduced by outstanding debt attributed to the acquisition, construction, or improvement of the assets. 2. Restricted net position: the amount of net position for which external restrictions have been imposed by creditors, grantors, contributors, or laws or regulations of other governments and restrictions imposed by law through constitutional provisions or enabling legislation. 3. Unrestricted net position: the amount of net position that does not meet the definition of restricted or net investment in capital assets. 31 ---PAGE BREAK--- ANOKA COUNTY ANOKA, MINNESOTA 1. Summary of Significant Accounting Policies D. Assets, Liabilities, and Net Position or Equity 9. Fund Equity (Continued) Classification of Fund Balances In February 2009, the Governmental Accounting Standards Board (GASB) issued Statement No. 54 “Fund Balance Reporting and Government Fund Type Definitions.” The new standard has no effect on the total amount reported as fund balances; however it alters the categories and terminology used to present the amounts on the governmental fund balance sheet. The statement establishes an initial distinction between what is considered nonspendable and what is spendable. The statement also provides for additional classifications for spendable items. These classifications are based upon the relative strength of the constraints that control how specific amounts can be spent. 1. Nonspendable: Fund balances classified as nonspendable include assets that will never convert to cash, such as prepaid items and inventories of supplies. 2. Spendable: All fund balances that are not classified as nonspendable are deemed spendable. The statement provides for classifications within the spendable category based upon the relative strength of the constraints that control how specific amounts can be spent. Those classifications are as follows: a. Restricted: Net fund resources that are subject to externally enforceable legal restrictions are deemed to be restricted. These restrictions are either 1) externally imposed by creditors (via bond or loan covenants), grantors, contributors or laws and regulations of other governments, or 2) imposed by law through constitutional provisions or enabling legislation. b. Committed: Net fund balances that represent resources that can be used only for the specific purposes determined by formal action of the Board are deemed to be committed. The County’s formal actions, or board resolutions, are the highest decision making level and remain binding unless removed in the same manner. Additionally, any Board action, either binding or unbinding, need be taken prior to the end of the calendar year. c. Assigned: Amounts in the assigned fund balance classification are intended to be used by the County for specific purposes but do not meet the criteria to be classified as restricted or committed. All assigned items are approved by the Finance and Central Services Division Manager. d. Unassigned: The residual classification of the County’s General Fund not contained in the other classifications is deemed to be unassigned. In other governmental funds, the unassigned classification is used only to report deficit balances resulting from overspending for specific purposes for which amounts had been restricted or committed. It is the policy of the County to spend fund balance in the following order: restricted, committed, assigned and then unassigned. Minimum Fund Balance Policy Anoka County has adopted a minimum fund balance policy to address cash flow or working capital needs and contingencies in the General Fund, which is heavily reliant on property tax revenues to fund current operations. However, current property tax revenues are not available for distribution until June. Therefore, the County Board has determined they need to maintain an unassigned fund balance in the General Fund equaling 35-50% of the next year’s operations, which is calculated as total budgeted operating expenditures less total budgeted operating (non-tax) revenues. 10. Use of Estimates The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. 2. Stewardship, Compliance, and Accountability Deficit Fund Balance At December 31, 2012 the Road and Bridge Special Revenue Fund had a deficit fund balance of $5,892,279. The deficit will be eliminated with future State Aid highway allotments. 32 ---PAGE BREAK--- ANOKA COUNTY ANOKA, MINNESOTA 3. Detailed Notes on All Funds A. Assets 1. Deposits and Investments a. Deposits Minn. Stat. Sec. 118A.02 and 118A.04 authorize the County to deposit its cash and to invest in certificates of deposit in financial institutions designated by the County Board. Minnesota Statute 118A.03 requires that all County deposits be protected by insurance, surety bond, or collateral. The market value of collateral pledged shall be at least ten percent more than the amount on deposit plus accrued interest at the close of the financial institution’s banking day, not covered by insurance or bonds. Authorized collateral includes treasury bills, notes and bonds; issues of U.S. government agencies; general obligations rate or better, revenue obligations rated “AA” or better, irrevocable standby letters of credit issued by the Federal Home Loan Bank; and certificates of deposit. Minnesota Statutes require that securities pledged as collateral be held in safekeeping in a restricted account at the Federal Reserve Bank or in an account at a trust department of a commercial bank or other financial institution that is not owned or controlled by the financial institution furnishing the collateral. Custodial Credit Risk – Deposits. Custodial credit risk is the risk that in the event of a financial institution failure, the County’s deposits may not be returned to it. County policy requires collateral coverage for all deposit balances exceeding the FDIC insured levels. Federal Home Loan Bank irrevocable letters of credit may be substituted for qualifying government securities at some institutions. Depository balances are monitored as necessary, to assure the coverage in place, meets or exceeds statutory requirements as specified in Minn. Stat. 118A.03. As of December 31, 2012, the County’s deposits were not exposed to custodial credit risk, being fully covered through collateral agreements with designated depositories. b. Investments The County invests available cash in various securities in accordance with requirements set forth in Minnesota Statutes. All investments are stated at fair value. The following is a summary of the fair values of the County’s investments, at December 31, 2012: Primary government Cash, cash equivalents and pooled investments 162,549,623 $ Cash and investments with escrow agents 25,447,093 Investments with trust account 288,080 Fiduciary funds Cash, cash equivalents and pooled investments Agency Fund 8,485,759 Investments Trust Fund 34,319,064 Total cash and investments 231,089,619 $ Minn. Stat. § 118A.06 authorizes the following safekeeping options for the County's investments: Any federal reserve bank. Any bank authorized under the laws of the United States or any state to exercise corporate trust powers, including but not limited to the bank from which the investment is purchased. A primary reporting dealer in United States government securities to the Federal Reserve Bank of New York. A securities broker-dealer, registered under Minn. Stat. ch. 80A, regulated by the Securities and Exchange Commission and maintaining SIPC insurance and excess SIPC insurance on the value of County securities held. The County’s ownership of all securities must be evidenced by written acknowledgements identifying the securities by the names of issuers, maturity dates, interest rates, CUSIP numbers, or other distinguishing marks. Anoka County contracts with an authorized third party institution for safekeeping. All County investment securities were properly safe kept, at December 31, 2012. Interest Rate Risk. Interest rate risk is the risk that changes in the market interest rates will adversely affect the fair value of an investment. The County minimizes their exposure to interest rate risk by investing in both shorter and longer-term investments and by timing cash flows from maturities so that a portion of the portfolio is maturing or coming close to maturity evenly over time as necessary to provide the cash flow and liquidity needed for operations. County policy limits maximum maturity/average life to fifteen years for individual investments and ten years for the total portfolio. 33 ---PAGE BREAK--- ANOKA COUNTY ANOKA, MINNESOTA 3. Detailed Notes on All Funds A. Assets 1. Deposits and Investments b. Investments (Continued) Credit Risk. Generally credit risk is the risk that an issuer of an investment will not fulfill its obligation to the holder of the investment. This risk is measured by the assignment of a rating by a nationally recognized statistical rating organization. It is the County’s policy to invest only in securities that meet the ratings requirements set by State Statute. Minnesota State Statute permits the following investments: United States securities; state or local government general obligation securities rated or better; state or local government revenue obligation securities rated “AA” or better; Minnesota Housing Finance Agency general obligation securities rated or better; highest rated commercial paper issued by United States corporations; time deposits insured by Federal Deposit Insurance Corporation (FDIC); specified mortgage-backed securities; and temporary general bonds. Custodial Credit Risk. The custodial credit risk for investments is the risk that, in the event of the failure of the counterparty to a transaction, a government will not be able to recover the value of investment or collateral securities that are in the possession of an outside party. The County’s policy states all investment securities purchased by the County shall be held in safekeeping by a third-party designated institution as agency for the County. As of December 31, 2012, the County’s investments were not exposed to custodial credit risk. Concentration of Credit Risk. Concentration of credit risk is the risk of loss to the portfolio related to the volume/quantity of the investments with a single issuer should that issuer fail. The investment policy of Anoka County limits concentration by security type to encourage a properly diversified portfolio. Investments in any one issuer that represent 5% or more of the County’s investments are as follows: Issuer Reported Amount Federal Home Loan Bank (FHLB) 48,586,871 $ Federal National Mortgage Association Note (FNMA) 41,701,616 U.S. Treasury securities (UST) 28,196,425 The primary objective of the County investment policy is capital preservation and liquidity. To achieve this goal, while enhancing returns and improving diversification, the portfolio is divided into multiple liquidity pools consisting of short, medium and core investment portfolios. The pools are assigned differing maturity and duration requirements, with the most liquid portions of the portfolio administered in-house and the core reserve portfolio assigned to select asset managers. The core reserve portfolio pool will have a longer time horizon and will not be needed to fund current operations. The funds in this pool are comprised of reserve funds, which are managed on a total return basis. The liquidity reserve portfolio is a pool comprised of investments of shorter maturities, which may be needed to fund temporary shortfalls in operating cashflows. The pool size is varied to meet changing liquidity circumstances and laddered to assure even maturities over time to supplement short liquidity positions. The current cash flow or liquidity portion of the portfolio is intended to balance cash flow timing with current and statutory payment obligations. Investment maturities are matched with current liabilities and payables. 34 ---PAGE BREAK--- ANOKA COUNTY ANOKA, MINNESOTA 3. Detailed Notes on All Funds A. Assets 1. Deposits and Investments b. Investments (Continued) The following table presents the County’s investment balances at December 31, 2012, and information relating to potential investment risks: Investment Type Credit Rating Rating Agency Custodial Risk % to Total Portfolio Fair Value Interest Rate Risk Core Reserve Pool U.S. Government Agency securities Federal Farm Credit Bank (FFCB) Aaa/AA+ S&P, M Custody 1.00% 2,063,767 $ 2.26 Federal Home Loan Bank (FHLB) Aaa/AA+ S&P, M Custody 2.04% 4,203,726 3.70 Federal Home Loan Mortgage Corporation Aaa/AA+ S&P, M Custody 3.20% 6,573,322 3.45 Federal National Mortgage Association Note (FNMA) Aaa/AA+ S&P, M Custody 8.11% 16,668,506 2.29 Small Business Association (SBA) NR - Custody 0.47% 974,868 4.41 National Credit Union Association (NCUA) NR - Custody 0.06% 117,642 2.40 Veterans Administration Vendee Mortgage NR - Custody 0.09% 184,402 2.42 U.S. Treasury Securities (UST) Aaa/AA+ S&P, M Custody 13.72% 28,196,425 3.04 Municipal securities State of Minnesota Aa1/AA+ S&P, M Custody 0.10% 200,283 0.58 State of Mississippi Aa2/AA S&P, M Custody 0.32% 647,958 4.15 State of New York Aa2/AA S&P, M Custody 0.11% 220,764 3.88 State of Ohio Aa1/AA+ S&P, M Custody 0.11% 232,936 1.30 State of Ohio Aa1/AA+ S&P, M Custody 0.18% 374,034 4.23 State of Oregon Aa1/AA+ S&P, M Custody 0.16% 318,762 1.67 State of Texas Aaa/AA+ S&P, M Custody 0.09% 182,156 4.43 State of Washington Aa1/AA+ S&P, M Custody 0.23% 475,223 0.58 Baltimore County, Maryland Aaa/AAA S&P, M Custody 0.12% 250,270 2.51 King County, Washington Aa1/AAA S&P, M Custody 0.09% 186,403 6.90 Lyon County, Nevada NA/AAA S&P, M Custody 0.19% 381,216 4.49 City and County of Honolulu, Hawaii Aa1/NA S&P, M Custody 0.21% 425,616 3.76 City and County of San Francisco, California Aa2/AA S&P, M Custody 0.12% 246,258 2.34 City of Columbus, Ohio Aaa/AAA S&P, M Custody 0.15% 300,309 3.55 City of Columbus, Ohio Aaa/AAA S&P, M Custody 0.12% 244,343 3.80 City of Fond Du Lac, Wisconsin Aa2/NA S&P, M Custody 0.11% 227,455 2.21 City of Kenosha, Wisconsin Aa2/AA S&P, M Custody 0.11% 220,778 3.00 City of Kirkwood, Iowa Aa2/AA- S&P, M Custody 0.12% 250,495 0.41 City of Moline, Illinois Aa2/NA S&P, M Custody 0.11% 230,021 3.25 City of Olentangy, Ohio Aa1/AA+ S&P, M Custody 0.10% 215,164 3.72 City of Roanoke, Virginia NA/AA S&P, M Custody 0.12% 252,389 2.43 City of Richmond, Virginia Aa2/AA S&P, M Custody 0.07% 135,734 3.44 City of Westerville, Ohio Aa2/AA- S&P, M Custody 0.15% 301,035 2.88 Crosby Ironton School District (MN) NA/AA+ S&P, M Custody 0.12% 241,201 2.85 Eden Prairie School District (MN) Aa2/NA S&P, M Custody 0.13% 262,782 2.82 Sioux Falls School District (SD) NA/AA S&P, M Custody 0.11% 223,826 3.00 Redford School District (MI) Aa2/AA- S&P, M Custody 0.10% 212,242 1.28 Las Vegas Valley, Nevada, Water District Aa2/AA+ S&P, M Custody 0.10% 210,940 4.08 Metropolitan Council, Minnesota Aaa/AAA S&P, M Custody 0.15% 308,331 4.50 Metropolitan Government of Nashville, Tennessee Aa1/AA S&P, M Custody 0.12% 255,398 4.37 Tennessee Valley Authority NR - Custody 0.07% 139,254 7.12 Index Fund Other Postemployment Benefit (OPEB) Trust Accounts Custody 16.83% 34,607,143 Core Reserve Pool Total 49.61% 101,963,377 Liquidity Reserve Pool U.S. Government Agency securities Federal Home Loan Bank (FHLB) Aaa/AA+ S&P, M Custody 14.28% 29,375,086 $ < 3 months Federal National Mortgage Association (FNMA) Aaa/AA+ S&P, M Custody 0.49% 1,001,600 < 3 months Federal National Mortgage Association Note (FNMA) Aaa/AA+ S&P, M Custody 3.41% 7,005,440 < 3 months Federal Home Loan Bank (FHLB) Aaa+/AA S&P, M Custody 4.86% 9,993,370 3-6 months Federal National Mortgage Association Note (FNMA) Aaa+/AA S&P, M Custody 2.92% 6,004,560 3-6 months Federal National Mortgage Association (FNMA) Aaa+/AA S&P, M Custody 0.97% 2,003,530 3-6 months Federal National Mortgage Association Note (FNMA) Aaa+/AA S&P, M Custody 0.49% 1,004,080 3-6 months Federal Home Loan Bank (FHLB) Aaa/AA+ S&P, M Custody 2.44% 5,014,689 6-9 months Federal National Mortgage Association Note (FNMA) Aaa/AA+ S&P, M Custody 3.90% 8,016,600 6-9 months Federal National Mortgage Association (FNMA) Aaa/AA+ S&P, M Custody 0.49% 1,004,730 6-9 months Federal National Mortgage Association Note (FNMA) Aaa/AA+ S&P, M Custody 1.46% 3,002,430 9-12 months Certificates of Deposit NA - Collateralized 0.04% 90,000 < 3 months Liquidity Reserve Pool Total 35.75% 73,516,115 Current Cashflow Pool Repurchase Agreement NR Custody 2.23% 4,575,623 < 3 months Money Market Funds NA Held in County Name 13.09% 26,903,382 Daily Availability Depositories - FDIC/Collateralized 1.21% 2,481,564 Daily Availability In Transit Items - -0.10% (204,550) Daily Availability Outstanding Checks - -1.78% (3,660,205) Daily Availability Current Cashflow Pool Total 14.65% 30,095,814 Portfolio Total 100.01% 205,575,306 Cash on Hand Petty cash 28,915 Departmental cash 9,915 Custodial accounts 28,390 Cash on Hand Total 67,220 Cash and Investment Total 205,642,526 $ Rating Agency: M - Moody's S&P - Standard & Poor's 35 ---PAGE BREAK--- ANOKA COUNTY ANOKA, MINNESOTA 3. Detailed Notes on All Funds A. Assets (Continued) 2. Receivables a. Property Tax Receivable Taxes which remain unpaid at December 31 are delinquent. No allowance for uncollectible taxes has been provided because such amounts are not expected to be material. Current property tax collections for the year ended December 31, 2012, were 98.83 percent (Table 8) of the current levy, which was a sufficient amount to finance the 2012 budget. Each year, the County tax levy for debt service on bonded indebtedness is set at 105 percent of the debt service required for that year, less available debt service reserves. b. Accounts Receivable Accounts receivable include an allowance for doubtful accounts. Total accounts receivable for the year ended December 31, 2012, were $2,689,343 and the allowance for doubtful accounts was $176,610 resulting in a net effect of $2,512,733. c. Loans Receivable The following is a summary of outstanding loans made to private enterprises and individuals as of December 31, 2012: Balance Outstanding Original Repaid at Balance - Loan December 31, December 31, Term Interest Amount 2012 2012 (Years) Rate General Fund Anoka County/Blaine Airport - Northwest Building 209,392 $ 9,502 $ 199,890 $ 20 5.00 Various forfeited tax sale contracts for repurchase 205,238 75,089 130,149 Various Various Total General Fund 414,630 84,591 330,039 Special Revenue Funds Community Development Block Grant Various home rehabilitation loans 3,463,535 672,348 2,791,187 Various Various Total Loan Receivable 3,878,165 $ 756,939 $ 3,121,226 $ Due within one year 88,901 $ d. Leases Receivable Anoka County has leased portions of the Anoka County Human Service Center to the State of Minnesota and various community- based non-profit organizations to be used for office space. There are six lease agreements, which expire June 30, 2013. Tenants pay rent in installments, in advance, on the first day of every month during the term of their lease. Rent is recorded as revenue when received Anoka County has subleased portions of the Northwest Building Area at the Anoka County/Blaine Airport from the Metropolitan Airports Commission (MAC). There are several lease agreements, with various expiration dates at a rate determined by MAC. Rent is recorded as revenue when received. Anoka County has leased the Head Start Facility to the Anoka County Community Action Program, Incorporated, (ACCAP) for approximately twenty-five years starting October 1, 1993, and ending June 1, 2018. ACCAP pays annual lease amounts that equal the annual debt service (principal plus interest) for the certificates of participation less any accrued interest earnings from the trust account, which has a portion of the original issue proceeds in reserve, plus any trustee expenses incurred. Anoka County has leased the Ice Arena to the National Sports Center Foundation (NSCF) for twenty years starting March 15, 2006, and ending March 15, 2026. NSCF pays annual lease amounts that equal the annual debt service (principal plus interest) for the lease revenue bonds less any accrued interest earnings from the trust account, which has a portion of the original issue proceeds in reserve, plus any trustee expenses incurred, and an annual payment to a repair and replacement fund, directly to the trustee. Taxes and other governmentally imposed fees or charges imposed on the leased property are paid to the County as assessed. Anoka County has leased the Metropolitan Mosquito Control District Project to the Metropolitan Mosquito Control District (MMCD) for approximately fifteen years starting November 27, 2007, and ending February 1, 2023. MMCD pays annual lease amounts that equal the annual debt service (principal plus interest) for the certificates of participation less any accrued interest earnings from the trust account, which has a portion of the original issue proceeds in reserve, plus any trustee expenses, rebate fees and payments, taxes or other charges, and fees for any administrative costs incurred. Anoka County has leased the ACCAP residences to the Anoka County Community Action Program, Incorporated, (ACCAP) for eighteen years starting July 1, 2010, and ending June 1, 2028. ACCAP pays annual lease amounts that equal the annual debt service (principal plus interest) for the certificates of participation less any accrued interest earnings from the trust account, which has a portion of the original issue proceeds in reserve, plus any trustee expenses incurred. 36 ---PAGE BREAK--- ANOKA COUNTY ANOKA, MINNESOTA 3. Detailed Notes on All Funds A. Assets 2. Receivables d. Leases Receivable (Continued) Amounts due under the Head Start Facility, Ice Arena, Metropolitan Mosquito Control District Project, and ACCAP residences lease agreements have been recorded as leases receivable and deferred revenue in the General Fund at December 31, 2012. The amounts for 2013 are considered current and due within one year. Amounts remaining to be paid are as follows: Head Start ACCAP Year Due Facility Ice Arena MMCD Project Residences Total 2013 267,115 $ 500,752 $ 249,713 $ 162,363 $ 1,179,943 $ 2014 150,074 504,453 247,806 165,120 1,067,453 2015 150,074 502,652 245,688 162,493 1,060,907 2016 150,074 500,453 248,250 164,465 1,063,242 2017 150,074 502,265 245,494 160,996 1,058,829 2018-2022 75,037 2,499,952 1,227,981 814,465 4,617,435 2023-2027 - 2,237,586 245,400 810,828 3,293,814 2028 - - - 159,394 159,394 Total 942,448 $ 7,248,113 $ 2,710,332 $ 2,600,124 $ 13,501,017 $ Due within one year 267,115 $ 500,752 $ 249,713 $ 162,363 $ 1,179,943 $ 3. Capital Assets Capital asset activity for the year ended December 31, 2012, was as follows: Primary Government Beginning Ending Balance Increases Decreases Balance Governmental activities: Capital assets, not being depreciated: Land 190,260,545 $ 3,820,067 $ - $ 194,080,612 $ Construction in progress 69,043,394 54,392,561 (12,523,148) 110,912,807 Total capital assets, not being depreciated 259,303,939 58,212,628 (12,523,148) 304,993,419 Capital assets, being depreciated: Buildings and structures 205,167,739 3,028,277 (169,934) 208,026,082 Improvements other than buildings 21,231,620 1,844,153 - 23,075,773 Machinery and equipment 40,780,268 3,295,194 (1,762,047) 42,313,415 Infrastructure 325,970,906 9,330,610 (1,988,772) 333,312,744 Software 5,366,034 - - 5,366,034 Total capital assets being depreciated 598,516,567 17,498,234 (3,920,753) 612,094,048 Less accumulated depreciation for: Buildings and structures (55,252,771) (4,113,322) 56,249 (59,309,844) Improvements other than buildings (9,768,101) (986,191) - (10,754,292) Machinery and equipment (21,838,922) (3,899,830) 1,519,613 (24,219,139) Infrastructure (94,901,918) (6,519,418) 883,156 (100,538,180) Software (1,311,379) (381,397) - (1,692,776) Total accumulated depreciation (183,073,091) (15,900,158) 2,459,018 (196,514,231) Total capital assets, being depreciated, net 415,443,476 1,598,076 (1,461,735) 415,579,817 Governmental activities capital assets, net 674,747,415 $ 59,810,704 $ (13,984,883) $ 720,573,236 $ 37 ---PAGE BREAK--- ANOKA COUNTY ANOKA, MINNESOTA 3. Detailed Notes on All Funds A. Assets 3. Capital Assets (Continued) Beginning Ending Balance Increases Decreases Balance Business-type activity: Capital assets, being depreciated: Buildings and structures 5,429,337 $ - $ - $ 5,429,337 $ Improvements other than buildings 1,499,672 - - 1,499,672 Machinery and equipment 1,219,204 8,983 (7,417) 1,220,770 Total capital assets being depreciated 8,148,213 8,983 (7,417) 8,149,779 Less accumulated depreciation for: Buildings and structures (869,709) (108,587) - (978,296) Improvements other than buildings (654,531) (69,586) - (724,117) Machinery and equipment (518,925) (55,083) 3,955 (570,053) Total accumulated depreciation (2,043,165) (233,256) 3,955 (2,272,466) Business-type activity capital assets, net 6,105,048 $ (224,273) $ (3,462) $ 5,877,313 $ Depreciation expense was charged to functions/programs of the primary government as follows: Governmental activities: General government 2,874,966 $ Public safety 3,070,000 Highways and streets, including depreciation of general infrastructure assets 7,597,342 Human services 163,501 Sanitation 10,280 Culture and Recreation 1,860,895 Economic development 323,174 Total depreciation expense-governmental activities 15,900,158 $ Business-type activity: Aquatic Center 233,256 $ Construction in progress at December 31, 2012, comprises the to-date costs of the following projects: Highway infrastructure 93,035,786 $ Highway facility 11,402,416 Broadband project 2,335,162 Park improvement projects 1,532,946 Sungard financial system 653,283 Library improvements 610,670 Government Center wireless network 530,999 Miscellaneous improvements 288,179 Roof, ramp and lot improvements 210,293 Security enhancements 183,315 Auto matrix 129,758 Total 110,912,807 $ 38 ---PAGE BREAK--- ANOKA COUNTY ANOKA, MINNESOTA 3. Detailed Notes on All Funds (Continued) B. Interfund Receivables, Payables and Transfers The composition of interfund balances as of December 31, 2012, is as follows: 1. Due From and To Other Funds Receivable Payable Description Major Governmental Funds General Fund 6,057,000 $ - $ Short term loan Road and Bridge - 6,025,000 Short term loan Total Major Governmental Funds 6,057,000 6,025,000 Nonmajor Governmental Funds Special Revenue Funds Job Training Center - 32,000 Short term loan Total Governmental Funds 6,057,000 6,057,000 Total Due From and To Other Funds 6,057,000 $ 6,057,000 $ 2. Advances To and From Other Funds Advances to the Parks and Recreation Special Revenue Fund include loans for golf course operations. Advances Advances To From Capital Projects Fund 210,000 $ - $ Parks and Recreation Special Revenue Fund - 210,000 Total Advances To and From Other Funds 210,000 $ 210,000 $ 39 ---PAGE BREAK--- ANOKA COUNTY ANOKA, MINNESOTA 3. Detailed Notes on All Funds B. Interfund Receivables, Payables and Transfers (Continued) 3. Interfund Transfers Interfund transfers for the year ended December 31, 2012, consisted of the following: Transfers in Description Major Governmental Funds Transfers to General Fund from: Road and Bridge 7,500 $ Vehicle purchase Road and Bridge 74,500 Voluntary separation program Human Services 105,000 Approved use of reserves Human Services 287,186 Voluntary separation program Job Training Center 86,639 Voluntary separation program County Library 93,609 Voluntary separation program Parks and Recreation 40,500 Voluntary separation program Total General Fund 694,934 Transfers to Road and Bridge Fund from: Regional Rail Authority 1,700,000 Roadway development Transfers to Human Services Fund from: Capital Projects 50,002 Capital expenditure Transfers to Debt Service Fund from: General Fund 1,199,720 Lease revenue debt payments General Fund 167,000 Correction bond payments Regional Railroad Authority 1,832,760 Transfer for debt service Housing and Redevelopment Authority 1,082,978 Debt service allocation from operations Capital Projects 142,863 Transfer for debt service Total Debt Service Fund 4,425,321 Transfers to Capital Projects Fund from: General Fund 44,998 Vehicle purchase General Fund 514,500 Approved use of reserves General Fund 771,630 Recorder compliance fee General Fund 4,100,000 Building projects General Fund 1,000,000 Information Technology projects Human Services 3,000,000 Building projects Human Services 1,286,762 Information Technology projects Human Services 85,000 Approved use of reserves Regional Rail Authority 100,000 CIP projects Total Capital Projects Fund 10,902,890 Transfers to other governmental funds from: Various funds 551,089 Miscellaneous Total Transfers In: Governmental Funds 18,324,236 $ Proprietary Funds Transfers to Aquatic Center Fund from: Parks and Recreation 7,483 $ Transfer asset Transfers to Pooled Insurance Fund from: General Fund 1,000,000 Pooled Insurance contribution Total Transfers In: Proprietary Funds 1,007,483 $ 40 ---PAGE BREAK--- ANOKA COUNTY ANOKA, MINNESOTA 3. Detailed Notes on All Funds (Continued) C. Liabilities 1. Payables Payables at December 31, 2012, were as follows: Governmental Business-type Activities Activities Accounts 5,987,907 $ 104 $ Salaries 5,857,853 4,750 Contracts 4,854,513 - Due to other governments 2,736,914 - Total payables 19,437,187 $ 4,854 $ 2. Deferred Revenue Deferred revenues consist of taxes receivable that are not collected soon enough after year-end to pay liabilities of the current year, state and federal grants received but not yet earned, installment loans, leases, and other items. Deferred revenue, at December 31, 2012, is summarized below by fund: Installment Taxes Grants Loans Leases Other Total Major Governmental Funds General 1,511,368 $ 615,449 $ 330,039 $ 13,501,017 $ 663,871 $ 16,621,744 $ Road and Bridge 269,234 - - - 253,593 522,827 Human Services 919,773 478,601 - - 397,263 1,795,637 Debt Service 600,966 - - - - 600,966 Capital Projects 55,108 - - - 4,243 59,351 Total Major Governmental Funds 3,356,449 1,094,050 330,039 13,501,017 1,318,970 19,600,525 Nonmajor Governmental Funds 425,962 1,556,326 2,791,187 - 586,473 5,359,948 Total All Funds 3,782,411 $ 2,650,376 $ 3,121,226 $ 13,501,017 $ 1,905,443 $ 24,960,473 $ Deferred revenue: Unearned - $ 1,815,718 $ - $ 13,501,017 $ 1,238,463 $ 16,555,198 $ Unavailable 3,782,411 834,658 3,121,226 - 666,980 8,405,275 3,782,411 $ 2,650,376 $ 3,121,226 $ 13,501,017 $ 1,905,443 $ 24,960,473 $ 3. Contract Commitments The County has entered into several contract commitments which have not been completed as of December 31, 2012. Following is a list of these projects and the corresponding amounts to be completed: Major Governmental Funds Special Revenue Funds Road and Bridge Various road projects 8,414,793 $ Capital Projects Fund Integrated case management 125,000 Library improvements 8,205 Elevator upgrades 692,067 Property management maintenance management system 14,005 Building projects 879,807 Information Technology projects 10,310 Total Capital Projects Fund 1,729,394 Total All Funds 10,144,187 $ 41 ---PAGE BREAK--- ANOKA COUNTY ANOKA, MINNESOTA 3. Detailed Notes on All Funds C. Liabilities (Continued) 4. Employment and Other Postemployment Benefits a. Other Postemployment Benefits (OPEB) Plan Description In addition to providing a pension benefits plan, the County provides postemployment health care and life insurance benefits (OPEB) for eligible retired employees, spouses and dependents through a single employer defined benefit plan. The benefits, benefits level, employee contribution and employer contribution are administered by the County Commissioners and can be amended by the County through its personnel manual and union contracts. The plan is accounted for as an irrevocable trust fund. A separate, audited GAAP basis benefits plan report is not issued. The activity of the plan is not reported in the government-wide financial statements. Benefits Provided Pursuant to Minn. Stat. Sec 471.61, subd 2a, Anoka County provides postemployment health care and life insurance benefits to retired employees, disabled retirees or survivors of deceased employees who were hired prior to January 6, 2007. To be eligible for benefits, a participant must qualify for retirement under the County’s retirement plan. The County contribution is graduated based on the employee’s years of service. The minimum contribution is based on ten years of service and the maximum contribution is achieved at more than 30 years of service. All medical health care benefits are provided through the County’s health insurance provider and are the same as those afforded to active employees. Benefits include medical services and prescriptions. A $2,000 group-term life insurance coverage is provided for the retiree and is fully paid for by the County. Participants Participants of the plan consisted of the following at December 31, 2011, the date of the actuarial valuation: Active employees 1,599 Retired employees and spouses 672 2,271 Trust Fund Anoka County established both an OPEB revocable trust and an irrevocable trust, pursuant to MN statutes, ch. 471.6175, to prefund a portion of the OPEB liability. Public Employees Retirement Association (PERA) serves as the trust administrator for both of the trust accounts. The OPEB revocable trust is reported in the General Fund as investments with trust account, using the modified accrual basis of accounting. The irrevocable trust is reported in the Statement of Fiduciary Net Position, Other Postemployment Benefits Trust Fund. This financial statement is prepared using the accrual basis of accounting. Contributions to the plan are recognized when due and the County has made a commitment to provide the contributions. The fair value of investments for both trusts are determined by the Minnesota State Board of Investment. Funding Policy and Contributions The County negotiates the contribution percentage between the County and employees through the union contracts and personnel policy. All eligible retirees with less than 10 years of service contribute 100% of the premium to the plan. For retirees with 10 to 15 years of service, the County contributes 50% of the single contribution made for active employees plus $2.65 per month towards family coverage for each year of service of the retiree. For retirees with more than 16 years of service, the County contributes 100% of the single contribution made for active employees plus a graduated dollar amount towards family coverage based on the retiree’s years of service. For the fiscal year ending December 31, 2012, the retirees contributed $1,292,131 toward the cost of their healthcare coverage Contributions of $1,270,000 were made to the irrevocable trust in 2012. 42 ---PAGE BREAK--- ANOKA COUNTY ANOKA, MINNESOTA 3. Detailed Notes on All Funds C. Liabilities 4. Employment and Other Postemployment Benefits a. Other Postemployment Benefits (OPEB) (Continued) Annual OPEB Cost and Net OPEB Obligation The County’s annual other postemployment benefit (OPEB) cost is calculated based on the annual required contribution (ARC) of the employer, an amount actuarially determined in accordance with the parameters of GASB Statement 45. The ARC represents a level of funding that, if paid on an ongoing basis, is projected to cover normal cost each year and amortize any unfunded actuarial liabilities (or funding excess) over a period not to exceed 30 years. The following table shows the components of the County’s annual OPEB cost for 2012, the amount actually contributed to the plan, and changes in the County’s net OPEB obligation: Annual required contribution (ARC) 5,905,879 $ Interest on net OPEB obligations 1,295,679 Adjustments to ARC (1,418,436) Annual OPEB Cost 5,783,122 Contributions to medical and life insurance on behalf of retirees (2,813,305) Contributions to irrevocable trust (1,270,000) Increase (decrease) in net OPEB obligation 1,699,817 Net OPEB beginning of year 15,243,285 Net OPEB end of year 16,943,102 $ The County’s annual OPEB cost, the percentage of annual OPEB cost contributed to the plan and the net OPEB obligation for the years ended December 31, 2008 through 2012 were as follows: Fiscal Year Ended Annual OPEB Cost Employer Contribution Percentage Contributed Net OPEB Obligation 12/31/08 13,022,150 $ 1,812,224 $ 13.92% 20,531,615 $ 12/31/09 12,847,081 22,351,676 173.98% 11,027,020 12/31/10 6,445,256 5,050,487 78.36% 12,421,789 12/31/11 6,461,225 3,639,729 56.33% 15,243,285 12/31/12 5,783,122 4,083,305 70.61% 16,943,102 Funding Status The County issued bonds in September 2009, for the purpose of partially funding its OPEB liability. These funds are reported in the Other Postemployment Benefits Trust Fund and are included in the December 31, 2011 actuarial valuation. Actuarial Valuation Date Actuarial Value of Assets Actuarial Accrued Liability Unfunded Actuarial Accrued Liability Funded Ratio Covered Payroll UAAL as a Percentage of Covered Payroll 12/31/2007 - $ 129,648,121 $ 129,648,121 $ 0.00% 100,641,903 $ 128.82% 12/31/2007 - 129,648,121 129,648,121 0.00% 103,373,137 125.42% 12/31/2009 21,376,934 71,980,996 50,604,062 29.70% 104,653,890 48.35% 12/31/2009 21,376,934 71,980,996 50,604,062 29.70% 104,014,943 48.65% 12/31/2011 29,290,357 69,623,253 40,332,896 42.07% 106,208,139 37.98% Actuarial Methods and Assumptions Actuarial valuations involve estimates of the value of reported amounts and assumptions about the probability of occurrence of events far into the future. Examples include assumptions about future employment, mortality, and healthcare cost trends. Amounts determined regarding the funded status of the plan and the annual required contributions of the employer are subject to continual revision as actual results are compared with past expectations and new estimates are made about the future. Projections of benefits for financial reporting purposes are based on the substantive plan (as understood by the employer and the plan members) and include the types of benefits provided at the time of each valuation. The actuarial methods and assumptions used include techniques that are designed to reduce the effects of short-term volatility in actuarial accrued liabilities, consistent with the long-term perspective of the calculations. In the December 31, 2011 actuarial valuation, the projected unit credit actuarial cost method was used. The actuarial assumptions included an 8.5% discount rate, which is based on the estimated long-term investment yield on the general assets of the County. An inflation rate of 3.0% is an implicit assumption within the report. The report states health care costs rates are trending down from 9.0% in 2014 to 4.5% in 2023. The unfunded actuarial accrued liability is amortized as a level dollar amount with an open 30 year amortization period. 43 ---PAGE BREAK--- ANOKA COUNTY ANOKA, MINNESOTA 3. Detailed Notes on All Funds C. Liabilities 4. Employment and Other Postemployment Benefits (Continued) b. Vacation and Sick Leave County employees represented by bargaining units are granted vacation, in varying amounts, depending on contractual agreement and length of service. All union employees accumulate one day of sick leave per month. Unused accumulated vacation and vested sick leave are paid to employees upon termination. Unvested sick leave, valued at $951,459 at December 31, 2012, is available to union employees in the event of illness-related absences, and is not paid to them at termination. c. Flexible Time Off and Extended Medical Benefit Non-organized employees vacation and sick time was converted to Flexible Time Off (FTO), and Extended Medical Benefit (EMB) hours as part of the October 2001 implementation of the Anoka County Preferred Benefit Plan. Vacation hours were converted to FTO hours and are vested. The amount of FTO hours a full time employee earns ranges from 24 to 33 days per year depending on years of service performed. Part time employees are pro-rated based on their scheduled hours and years of service. The unvested sick leave hours were converted to EMB hours. These hours are not vested and are valued at $18,492,826 on December 31, 2012. EMB hours are available for use in times of illness, after using 40 FTO or leave without pay hours. Full time employees accrue eight days of EMB per year, and part time employees receive a pro-rated amount based on their schedule. 5. Operating Leases The County currently has 14 operating leases. The County made operating lease payments totaling $369,028 in 2012. The following is a schedule of future minimum operating lease payments: Year Due Lease Payments 2013 333,372 $ 2014 338,301 2015 284,210 2016 209,330 2017 123,662 2018-2022 123,447 2023-2027 15 Total 1,412,337 $ 6. Long-Term Debt - Bonds and Notes The following is a summary of Anoka County’s long-term bonded debt transactions for its governmental activities for the year ended December 31, 2012: General Lease General Obligation Revenue Obligation Bonds Supported Obligations Bonds and Notes By Revenue Total Payable January 1 10,873,505 $ 173,460,000 $ 30,475,000 $ 214,808,505 $ Additions (Deductions) Debt issued - 18,200,000 10,885,000 29,085,000 Debt retired (723,850) (17,910,000) (1,070,000) (19,703,850) Payable December 31 10,149,655 $ 173,750,000 $ 40,290,000 $ 224,189,655 $ December 31 balance of: Issuance premiums 30,568 4,475,868 84,719 4,591,155 Issuance discounts - (215,032) (32,144) (247,176) Payable December 31 10,180,223 $ 178,010,836 $ 40,342,575 $ 228,533,634 $ Due within one year 748,997 $ 14,600,000 $ 1,125,000 $ 16,473,997 $ 44 ---PAGE BREAK--- ANOKA COUNTY ANOKA, MINNESOTA 3. Detailed Notes on All Funds C. Liabilities 6. Long-Term Debt - Bonds and Notes (Continued) Refunding Bond Note Disclosures On February 23, 2012, the County issued $4,320,000 General Obligation Refunding Bonds, Series 2012B; with an average interest rate of 2.10 percent to refund $1,630,000 of outstanding General Obligation Capital Improvement Bonds, Series 2004A, $1,145,000 of General Obligation Capital Improvement Bonds, Series 2005A, and $1,605,000 of General Obligation Library Refunding Bonds, Series 2005D with average interest rates of 3.85, 3.63 and 3.64 percent, respectively. The net proceeds of the 2012B bonds were used to current refund the 2004A, 2005A and 2005D bonds on March 2, 2012. The County refunded the bonds to reduce its total debt service payments by $279,550 and to obtain an economic gain (difference between the present values of the debt service payment on the old and new debt) of $270,474. On December 27, 2012 the County issued $5,230,000 Taxable General Obligation Refunding Bonds, Series 2012A; with an average interest rate of 1.93 percent to refund $5,285,000 of outstanding Ice Arena Revenue Refunding Bonds, Series 2005 with an average interest rate of 4.57 percent. The refunding of the 2005 bonds will be conducted by means of a crossover refunding mechanism. The County will continue to make principal and interest payments on the Series 2005 bonds through the call date of February 1, 2014. The County refunded the bonds to reduce its total debt service payments by $353,359 and to obtain an economic gain (difference between the present values of the debt service payment on the old and new debt) of $323,473. On December 27, 2012 the County issued $5,655,000 Lease Revenue Refunding Bonds, Series 2012B; with an average interest rate of 1.71 percent to refund $5,375,000 of outstanding Ice Arena Lease Revenue Bonds, Series 2006A with an average interest rate of 4.55 percent. The refunding of the 2006A bonds will be conducted by means of a crossover refunding mechanism. The County will continue to make principal and interest payments on the Series 2006A bonds through the call date of March 15, 2015. The County refunded the bonds to reduce its total debt service payments by $603,428 and to obtain an economic gain (difference between the present values of the debt service payment on the old and new debt) of $545,748. Bonds and notes payable at December 31, 2012 comprise the following individual issues: a. Lease Revenue Obligations: $1,130,000 May 1, 2003 Anoka County Community Action Program Refunding Certificates of Participation (Anoka County Installment Contract Obligations). These certificates mature in amounts ranging from $110,000 to $115,000 each June 1 in the years 2004 to 2013 with interest due each June 1 and December 1 at rates from 2.00 to 3.55 percent. Certificates maturing on or after June 1, 2010, are subject to redemption on June 1, 2010, and on any date thereafter at a price of par plus accrued interest. 115,000 $ $6,600,000 March 21, 2006 Ice Arena Lease Revenue Bonds: serial bonds maturing in amounts ranging from $225,000 to $730,000 each March 15 in the years 2009 to 2026 with interest due each March 15 and September 15 at rates from 4.00 to 4.45 percent. Bonds maturing March 15, 2006, and thereafter are subject to redemption on March 15, 2015, and on any date thereafter at a price of par. 5,375,000 $2,705,000 November 28, 2007 Metropolitan Mosquito Control District Project Certificates of Participation. These certificates mature in amounts ranging from $115,000 to $240,000 each February 1 in the years 2010 to 2023 with interest due each February 1 and August 1 at rates from 4.25 to 4.50 percent. Certificates maturing on or after February 1, 2018 are subject to redemption on February 1, 2017, and on any date thereafter at a price of par plus accrued interest. 2,155,000 $1,205,000 July 8, 2008 Anoka County Community Action Program Annual Appropriation Lease and Refunding of Certificates of Participation. These certificates mature in amounts ranging from $49,304 to $73,396 each June 1 and December 1 in the years 2009 to 2018 with interest due each June 1 and December 1 at a rate of 4.47 percent. 724,655 $1,930,000 July 22, 2010 Taxable Refunding Certificates of Participation. These certificates mature in amounts ranging from $70,000 to $155,000 each June 1 in the years 2011 to 2028 with interest due each June 1 and December 1 at rates from 1.72 to 5.67 percent. Certificates maturing on or after June 1, 2018, are subject to redemption on June 1, 2019, and on any day thereafter at a price of par plus accrued interest. 1,780,000 Total Lease Revenue Obligations 10,149,655 $ 45 ---PAGE BREAK--- ANOKA COUNTY ANOKA, MINNESOTA 3. Detailed Notes on All Funds C. Liabilities 6. Long-Term Debt - Bonds and Notes (Continued) b. General Obligation Bonds and Notes: $10,500,000 November 1, 2002 General Obligation Public Safety Radio System Bonds: serial bonds maturing in amounts ranging from $850,000 to $1,225,000 each February 1 in the years 2004 to 2013 with interest due each February 1 and August 1 at rates from 1.95 to 3.95 percent. No redemption option available. 1,225,000 $ $13,000,000 September 30, 2005 General Obligation Airport Improvement Bonds: serial bonds maturing in amounts ranging from $475,000 to $970,000 each February 1 in the years 2015 to 2033 with interest due each February 1 and August 1 at rates from 4.00 to 4.40 percent. Bonds maturing on or after February 1, 2016, are subject to redemption on February 1, 2015, and on any date thereafter at a price of par plus accrued interest. 11,260,000 $4,285,000 February 15, 2006 General Obligation Capital Improvement Bonds: serial bonds maturing in amounts ranging from $370,000 to $500,000 each February 1 in the years 2007 to 2016 with interest due each February 1 and August 1 at rates from 3.25 to 4.00 percent. Bonds maturing on or after February 1, 2015, are subject to redemption on February 1, 2014, and on any day thereafter at a price of par plus accrued interest. 1,895,000 $3,385,000 February 15, 2006 General Obligation Airport Improvement Bonds: serial bonds maturing in amounts ranging from $75,000 to $225,000 each February 1 in the years 2010 to 2033 with interest due each February 1 and August 1 at rates from 4.00 to 5.00 percent. Bonds maturing on or after February 1, 2016, are subject to redemption on February 1, 2015, and on any day thereafter at a price of par plus accrued interest. 3,065,000 $7,030,000 September 28, 2006 General Obligation Capital Improvement Bonds: serial bonds maturing in amounts ranging from $270,000 to $615,000 each February 1 in the years 2009 to 2022 with interest due each February 1 and August 1 at rates from 3.60 to 4.25 percent. Bonds maturing on or after February 1, 2016, are subject to redemption on February 1, 2015, and on any day thereafter at a price of par plus accrued interest. 5,180,000 $7,675,000 February 15, 2007 General Obligation Capital Improvement Bonds: serial bonds maturing in amounts ranging from $430,000 to $670,000 each February 1 in the years 2010 to 2022 with interest due each February 1 and August 1 at rates from 4.00 to 4.35 percent. Bonds maturing on or after February 1, 2016, are subject to redemption on February 1, 2015, and on any day thereafter at a price of par plus accrued interest. 5,850,000 $3,245,000 February 15, 2007 General Obligation Library Bonds: serial bonds maturing in amounts ranging from $165,000 to $280,000 each February 1 in the years 2009 to 2022 with interest due each February 1 and August 1 at a rate of 4.00 to 4.35 percent. Bonds maturing on or after February 1, 2016 are subject to redemption on February 1, 2015, and on any day thereafter at a price of par accrued interest. 2,365,000 $12,255,000 July 16, 2007 General Obligation Capital Improvement Bonds: serial bonds maturing in amounts ranging from $360,000 to $905,000 each February 1 in the years 2010 to 2029 with interest due each February 1 and August 1 at a rate of 4.25 to 5.00 percent. Bonds maturing on or after February 1, 2018, are subject to redemption on February 1, 2017, and on any day thereafter at a price of par plus accrued interest. 10,685,000 $32,510,000 January 16, 2007 Limited Tax Bonds: serial bonds maturing in amounts ranging from $715,000 to $2,065,000 each February 1 in the years 2009 to 2032 with interest due each February 1 and August 1 at a rate of 4.00 to 4.50 percent. Bonds maturing on or after February 1, 2018, are subject to redemption on February 1, 2017, and on any day thereafter at a price of par plus accrued interest. 28,380,000 $16,505,000 February 28, 2008 General Obligation Capital Improvement Bonds: serial bonds maturing in amounts ranging from $380,000 to $1,220,000 each February 1 in the years 2010 to 2028 with interest due each February 1 and August 1 at a rate of 3.00 to 5.00 percent. Bonds maturing on or after February 1, 2019, are subject to redemption on February 1, 2018, and on any day thereafter at a price of par plus accrued interest. 14,035,000 $ 46 ---PAGE BREAK--- ANOKA COUNTY ANOKA, MINNESOTA 3. Detailed Notes on All Funds C. Liabilities 6. Long-Term Debt - Bonds and Notes b. General Obligation Bonds and Notes: (Continued) $3,745,000 July 17, 2008 General Obligation Capital Improvement Notes: serial notes maturing in amounts ranging from $690,000 to $810,000 each February 1 in the years 2010 to 2014 with interest due each February 1 and August 1 at a rate of 4.00 percent. The notes will not be subject to payment in advance of their respective stated maturity dates. 1,585,000 $ $13,195,000 July 17, 2008 General Obligation Capital Improvement Bonds: serial bonds maturing in amounts ranging from $435,000 to $980,000 each February 1 in the years 2011 to 2030 with interest due each February 1 and August 1 at a rate of 4.00 to 5.00 percent. Bonds maturing on or after February 1, 2019, are subject to redemption on February 1, 2018, and on any day thereafter at a price of par plus accrued interest. 12,310,000 $1,395,000 July 17, 2008 General Obligation Airport Improvement Bonds (AMT); serial bonds maturing in amounts ranging from $65,000 to $125,000 each February 1 in the years 2010 to 2024 with interest due each February 1 and August 1 at a rate of 4.50 to 5.00 percent. Bonds maturing on or after February 1, 2019, are subject to redemption on February 1, 2018, and on any day thereafter at a price of par plus accrued interest. 995,000 $18,310,000 February 19, 2009 General Obligation Capital Improvement Bonds: serial bonds maturing in amounts ranging from $1,000,000 to $1,620,000 each February 1 in the years 2010 to 2024 with interest due each February 1 and August 1 at a rate of 2.00 to 5.00 percent. Bonds maturing on or after February 1, 2020, are subject to redemption on February 1, 2019, and on any day thereafter at a price of par plus accrued interest. 15,310,000 $3,000,000 July 9, 2009 General Obligation Capital Notes: serial notes maturing in amounts ranging from $585,000 to $615,000 each February 1 in the years 2010 to 2014 with interest due each February 1 and August 1 at a rate of 3.50 to 4.00 percent. No redemption option is available. 1,220,000 $3,000,000 July 9, 2009 General Obligation Capital Improvement Bonds: serial bonds maturing in amounts ranging from $280,000 to $330,000 each February 1 in the years 2010 to 2019 with interest due each February 1 and August 1 at a rate of 3.50 to 4.00 percent. Bonds maturing on or after February 1, 2018, are subject to redemption on February 1, 2017, and on any day thereafter at a price of par plus accrued interest. 2,135,000 $20,000,000 September 22, 2009 Taxable General Obligation OPEB Bonds: serial bonds maturing in amounts ranging from $1,430,000 to $2,235,000 each February 1, in the years 2011 to 2021 with interest due each February 1 and August 1 at a rate of 1.25 to 4.81 percent. Bonds maturing on or after February 1, 2020, are subject to redemption on February 1, 2019, and on any day thereafter at a price of par plus accrued interest. 16,985,000 $740,000 December 9, 2009 General Obligation Capital Notes: serial notes maturing in amount ranging from $145,000 to $155,000 each August 1 in the years 2010 to 2014 with interest due each February 1 and August 1 at a rate of 3.00 percent. No redemption option is available. 305,000 $6,680,000 December 9, 2009 General Obligation Bonds: serial bonds maturing in amounts ranging from $405,000 to $495,000 each August 1 in the years 2010 to 2024 with interest due each February 1 and August 1 at a rate of 3.00 to 4.00 percent. Bonds maturing on or after August 1, 2018, are subject to redemption on August 1, 2017, and on any day thereafter at a price of par plus accrued interest. 5,400,000 $1,485,000 December 9, 2009 General Obligation Recreational Refunding Bonds: serial bonds maturing in amounts ranging from $105,000 to $145,000 each February 1 in the years 2012 to 2023 with interest due each February 1 and August 1 at a rate of 3.00 to 4.00 percent. Bonds maturing on or after February 1, 2018, are subject to redemption on February 1, 2017, and on any day thereafter at a price of par plus accrued interest. 1,380,000 $3,430,000 July 14, 2010 General Obligation Capital Notes: serial bonds maturing in amounts ranging from $685,000 to $705,000 each February 1 in the years 2011 to 2015 with interest due each February 1 and August 1 at a rate of 2.00 percent. No redemption option is available. 2,075,000 $ 47 ---PAGE BREAK--- ANOKA COUNTY ANOKA, MINNESOTA 3. Detailed Notes on All Funds C. Liabilities 6. Long-Term Debt - Bonds and Notes b. General Obligation Bonds and Notes: (Continued) $4,030,000 July 14, 2010 General Obligation Bonds: serial bonds maturing in amounts ranging from $250,000 to $560,000 each February 1 in the years 2011 to 2020 with interest due each February 1 and August 1 at a rate of 2.00 to 3.00 percent. Bonds maturing on or after February 1, 2019, are subject to redemption on February 1, 2018, and on any day thereafter at a price of par plus accrued interest. 2,935,000 $ $8,180,000 September 29, 2011 General Obligation Bonds: serial bonds maturing in amounts ranging from $370,000 to $680,000 each February 1 in the years 2013 to 2027 with interest due each February 1 and August 1 at a rate of 2.00 to 3.125 percent. Bonds maturing on or after February 1, 2021, are subject to redemption on February 1, 2020, and on any day thereafter at a price of par plus accrued interest. 8,180,000 $795,000 September 29, 2011 General Obligation Capital Notes: serial bonds maturing in amounts ranging from $145,000 to $170,000 each February 1 in the years 2013 to 2017 with interest due each February 1 and August 1 at a rate of 2.00 to 3.00 percent. Bonds maturing on or after February 1, 2021, are subject to redemption on February 1, 2020, and on any day thereafter at a price of par plus accrued interest. 795,000 $13,880,000 February 23, 2012 General Obligation Capital Improvement Bonds: serial bonds maturing in amounts ranging from $785,000 to $1,155,000 each February 1 in the years 2013 to 2027 with interest due each February 1 and August 1 at a rate of 2.00 to 5.00 percent. Bonds maturing on or after February 1, 2021, are subject to redemption on February 1, 2020, and on any day thereafter at a price of par plus accrued interest. 13,880,000 $4,320,000 February 23, 2012 General Obligation Refunding Bonds: serial bonds maturing in amounts ranging from $195,000 to $1,235,000 each February 1 in the years 2013 to 2018 with interest due each February 1 and August 1 at a rate of 2.00 to 2.50 percent. No redemption option is available. 4,320,000 Total General Obligation Bonds and Notes 173,750,000 c. General Obligation Bonds Supported by Revenue: $5,985,000 April 1, 2004 City of Oak Grove Senior Housing Bonds: serial bonds maturing in amounts from $90,000 to $375,000 each February 1 in the years 2007 to 2034 with interest due each February 1 and August 1 at rates from 1.90 to 5.00 percent. Bonds maturing on or after February 1, 2015, are subject to redemption on February 1, 2014, and on any date thereafter at a price of par plus accrued interest. 5,355,000 $3,075,000 April 1, 2004 City of Centerville - Phase II Senior Housing Bonds: serial bonds maturing in amounts ranging from $30,000 to $295,000 each February 1 in the years 2007 to 2034 with interest due each February 1 and August 1 at rates from 1.90 to 5.00 percent. Bonds maturing on or after February 1, 2015, are subject to redemption on February 1, 2014, and on any date thereafter at a price of par plus accrued interest. 2,865,000 $1,320,000 April 1, 2004 City of Centerville Housing Development Revenue Refunding Bonds: serial bonds maturing in amounts ranging from $35,000 to $85,000 each February 1 in the years 2005 to 2026 with interest due each February 1 and August 1 at rates from 1.25 to 5.00 percent. Bonds maturing on or after February 1, 2015, are subject to redemption on February 1, 2014, and on any date thereafter at a price of par plus accrued interest. 970,000 $7,500,000 March 30, 2005 Ice Arena Revenue Refunding Bonds: serial bonds maturing in amounts ranging from $140,000 to $585,000 each February 1 in the years 2006 to 2023 with interest due each February 1 and August 1 at rates from 2.55 to 4.45 percent. Bonds maturing on or after February 1, 2015, are subject to redemption on February 1, 2014, and on any date thereafter at a price of par plus accrued interest. 5,285,000 $ 48 ---PAGE BREAK--- ANOKA COUNTY ANOKA, MINNESOTA 3. Detailed Notes on All Funds C. Liabilities 6. Long-Term Debt - Bonds and Notes c. General Obligation Bonds Supported by Revenue: (Continued) $1,600,000 June 28, 2005 General Obligation Revenue Refunding Bonds: serial bonds maturing in amounts ranging from $135,000 to $190,000 each December 1 in the years 2009 to 2017 with interest due each June 1 and December 1 at rates from 3.00 to 4.00 percent. Bonds maturing on or after December 1, 2014, are subject to redemption on December 1, 2013, and on any date thereafter at a price of par plus accrued interest. 875,000 $ $2,770,000 September 29, 2008 Ham Lake Senior Housing Refunding Bonds: serial bonds maturing in amounts ranging from $40,000 to $200,000 each January 1 in the years 2010 to 2024 with interest due each January 1 and July 1 at rates from 4.00 to 4.50 percent. Bonds maturing January 1, 2019, and thereafter are subject to redemption on January 1, 2018, and on any date thereafter at a price of par. 2,370,000 $3,200,000 February 25, 2009, Anoka County Housing and Redevelopment Authority Housing Development Refunding Bonds: serial bonds maturing in amounts ranging from $105,000 to $230,000 each January 1 in the years 2010 to 2028 with interest due each January 1 and July 1 at a rate of 2.00 to 4.20 percent. No redemption option is available. 2,825,000 $5,750,000 October 27, 2011, Anoka County Housing and Redevelopment Authority Housing Development Refunding Bonds: serial bonds maturing in amounts ranging from $30,000 to $405,000 each February 1 in the years 2012 to 2036 with interest due each February 1 and August 1 at a rate of 2.00 to 3.70 percent. Bonds maturing February 1, 2021, and thereafter are subject to redemption on February 1, 2020, and on any date thereafter at a price of par. 5,720,000 $3,170,000 October 27, 2011, Anoka County Housing and Redevelopment Authority Housing Development Refunding Bonds: serial bonds maturing in amounts ranging from $30,000 to $285,000 each February 1 in the years 2012 to 2034 with interest due each February 1 and August 1 at a rate of 2.00 to 3.70 percent. Bonds maturing February 1, 2021, and thereafter are subject to redemption on February 1, 2020, and on any date thereafter at a price of par. 3,140,000 $5,230,000 December 27, 2012, Anoka County Housing and Redevelopment Authority Taxable General Obligation Refunding Bonds: serial bonds maturing in amounts ranging from $530,000 to $560,000 each February 1 in the years 2014 to 2023 with interest due each February 1 and August 1 at a rate of 0.50 to 2.60 percent. No redemption option is available. 5,230,000 $5,655,000 December 27, 2012, Anoka County Housing and Redevelopment Authority General Obligation Refunding Bonds: serial bonds maturing in amounts ranging from $420,000 to $720,000 each February 1 in the years 2014 to 2026 with interest due each February 1 and August 1 at a rate of 1.00 to 2.00 percent. Bonds maturing February 1, 2022, and thereafter are subject to redemption on February 1, 2021, and on any date thereafter at a price of par. 5,655,000 Total General Obligation Bonds Supported by Revenue 40,290,000 Total Bonds and Notes Payable 224,189,655 $ 49 ---PAGE BREAK--- ANOKA COUNTY ANOKA, MINNESOTA 3. Detailed Notes on All Funds C. Liabilities (Continued) 7. Debt Service Requirements General Lease General Obligation Revenue Obligation Bonds Supported Year Due Obligations Bonds and Notes By Revenue Principal Interest 2013 1,179,945 $ 21,382,493 $ 2,358,139 $ 16,473,997 $ 8,446,580 $ 2014 1,067,452 20,127,905 15,413,920 28,904,376 7,704,902 2015 5,472,581 18,883,825 2,315,002 19,859,997 6,811,410 2016 562,789 16,751,359 2,312,832 13,395,873 6,231,107 2017 556,564 16,221,535 2,323,311 13,352,014 5,749,396 2018-2022 2,117,483 74,579,018 10,581,817 66,398,398 20,879,920 2023-2027 1,056,228 42,824,554 7,860,103 42,525,000 9,215,885 2028-2032 159,394 19,948,651 3,442,865 21,050,000 2,500,910 2033-2037 - 230,625 2,138,478 2,230,000 139,103 12,172,436 230,949,965 48,746,467 less interest (2,022,781) (57,199,965) (8,456,467) 67,679,213 $ Total principal due 10,149,655 $ 173,750,000 $ 40,290,000 $ 224,189,655 $ Total payments Total 8. Long-Term Obligations – Other Prior years compensated absence liabilities were paid from the General Fund, Special Revenue Funds and the Enterprise Fund. Changes in long-term obligations, other than bonds, for the year ended December 31, 2012, are summarized as follows: Business-Type Activities Capital Compensated Compensated Leases Absences Absences Payable, January 1 75,882 $ 8,646,548 $ 13,029 $ Additions - 12,563,137 - Deletions (22,916) (12,781,287) (1,364) Payable, December 31 52,966 $ 8,428,398 $ 11,665 $ Due within one year 23,875 $ 421,420 $ 583 $ Long-Term Obligations Governmental Activities Capital Leases The County currently has a capital lease-to-purchase agreement for 70 golf carts at Chomonix Golf Course. The golf carts are less than the County’s threshold for capitalization and therefore are not in the capital assets. The County financed a total of $97,148 at 4.25 percent interest. The following is a schedule of future minimum lease payments with the present value of the net minimum lease payments: Year Due Golf Carts 2013 25,864 $ 2014 25,865 2015 4,312 Total payments 56,041 Less interest (3,075) Present Value of Net Minimum Payments 52,966 $ 50 ---PAGE BREAK--- ANOKA COUNTY ANOKA, MINNESOTA 3. Detailed Notes on All Funds C. Liabilities (Continued) 9. HRA Recovery Zone Economic Development Bonds The Housing and Redevelopment Authority (HRA) has issued Recovery Zone Economic Development Bonds to facilitate the development of both healthcare and medical facilities. The bonds are secured by the financed property and are payable solely from the revenues of the healthcare facility or medical center. The bonds do not constitute a charge, lien, or encumbrance, legal or equitable, upon any property or funds of the HRA, nor is the HRA subject to any liability thereon. Accordingly the bonds are not reported as a liability in the accompanying financial statements. The recovery zone bonds have an outstanding principal balance of $14,845,000 at December 31, 2012. There were four recovery zone bond issuances at December 31, 2012: Issue Principal Balance Fridley Medical Center Project 2010A 10,925,000 $ Fridley Medical Center Project 2010B 775,000 Park River Estate Care Center 2010D 2,915,000 Park River Estate Care Center 2010E 230,000 14,845,000 $ D. Fund Balances The summary of fund balance classifications is as follows: Special Debt Capital General Revenue Service Projects Total Nonspendable for: Advances to other funds - $ - $ - $ 210,000 $ 210,000 $ Inventories - 2,508,015 - - 2,508,015 Prepaid items 115,221 7,277 - - 122,498 Total Nonspendable 115,221 $ 2,515,292 $ - $ 210,000 $ 2,840,513 $ Special Debt Capital General Revenue Service Projects Total Restricted for: Recorders compliance 5,396,153 $ - $ - $ - $ 5,396,153 $ 911 capital expenditures 845,459 - - - 845,459 Conceal and Carry law 399,111 - - - 399,111 Investments with trust account 288,080 - - - 288,080 Narcotics program 5,000 - - - 5,000 Solid waste abatement (recycling) 500,000 - - - 500,000 Household Hazardous Waste program 500,000 - - - 500,000 SCORE program 815,000 - - - 815,000 Solid waste cleanup 692,700 - - - 692,700 Waste processing 3,739,420 - - - 3,739,420 Solid waste 500,000 - - - 500,000 Dedicated donations 8,718 8,778 - - 17,496 Drug and narcotics enforcement - 24,590 - - 24,590 Economic development grants - 438,882 - - 438,882 Revolving loans - 150,000 - - 150,000 Edith P. Wargo estate - 323,399 - - 323,399 Ag Preservation programs - 54,766 - - 54,766 Law library - 280,179 - - 280,179 Law enforcement - 84,500 - - 84,500 Amounts with escrow agents - 3,901,654 21,545,439 - 25,447,093 Debt service - - 17,577,974 - 17,577,974 Help America Vote Act (HAVA) Grant - - - 328,249 328,249 Total Restricted 13,689,641 $ 5,266,748 $ 39,123,413 $ 328,249 $ 58,408,051 $ Special Debt Capital General Revenue Service Projects Total Committed for: Library - $ 6,506,978 $ - $ - $ 6,506,978 $ Cooperative Extension programs - 215,542 - - 215,542 Total Committed - $ 6,722,520 $ - $ - $ 6,722,520 $ Special Debt Capital General Revenue Service Projects Total Assigned for: Self insurance liabilities 1,000,000 $ - $ - $ - $ 1,000,000 $ Secured juvenile facility 477,491 - - - 477,491 Operating insurance 250,000 - - - 250,000 Health insurance 749,561 $ - $ - $ - $ 749,561 $ (Continued) 51 ---PAGE BREAK--- ANOKA COUNTY ANOKA, MINNESOTA 3. Detailed Notes on All Funds D. Fund Balances (Continued) Special Debt Capital General Revenue Service Projects Total Assigned for: Mega projects 131,714 $ - $ - $ - $ 131,714 $ Jail and corrections medical expense 100,000 - - - 100,000 Energy response fund 200,000 - - - 200,000 Court appointed attorneys 24,000 - - - 24,000 Copier replacement 36,578 - - - 36,578 Deferred compensation program for new hires 5,000 - - - 5,000 Alternative hearing and mediation program 25,000 - - - 25,000 Virtual blade server 175,438 - - - 175,438 Exceptional service pay 5,000 - - - 5,000 Other Post Employment Benefits (OPEB) 900,000 - - - 900,000 Drug and narcotics enforcement 104,913 - - - 104,913 Transit operations 125,000 - - - 125,000 Medical examiner operations and building 304,527 400,000 - - 704,527 County Kaizen and process improvement 45,000 50,000 - - 95,000 Affordable Care Act staffing - 1,500,000 - - 1,500,000 sexual holds - 150,000 - - 150,000 Early Neutral Evaluation - 25,000 - - 25,000 CHIPS petition processing - 20,000 - - 20,000 Workhouse van - 30,000 - - 30,000 Enhanced treatment program - 150,000 - - 150,000 Partnership for Family Success - 250,000 - - 250,000 Family Unification Program (FUP) - 50,000 - - 50,000 Community emergency needs - 200,000 - - 200,000 Veterans services - 40,000 - - 40,000 Neighborhood center remodeling - 30,000 - - 30,000 Computer system upgrades - 50,900 - - 50,900 Economic Assistance automation project - 25,547 - - 25,547 Human service programs - 26,301,099 - - 26,301,099 Economic development - 7,996,680 - - 7,996,680 Parks - 1,910,298 - - 1,910,298 Future capital improvements - 8,226,563 - - 8,226,563 Willows operations - 245,234 - - 245,234 Chauncey-Barett Gardens operations - 17,043 - - 17,043 Savannah Oaks operations - 349,728 - - 349,728 Oaks of Lake George operations - 138,776 - - 138,776 Office furniture and equipment - 250,000 - 70,000 320,000 One time funding - - - 142,314 142,314 Financial system projects - - - 2,184,022 2,184,022 Parking lot and parking ramp improvements - - - 528,593 528,593 Board room chairs and agenda software - - - 70,000 70,000 License center lobbies - - - 35,000 35,000 Government center roof replacement - - - 386,263 386,263 Jail and security systems - - - 1,880,526 1,880,526 Computer replacement - - - 400,000 400,000 Training software - - - 100,000 100,000 Citrix project - - - 400,000 400,000 Public Health information management system - - - 899,471 899,471 Information technology (IT) projects - - - 2,090,042 2,090,042 IT server room mechanical upgrades - - - 1,230,000 1,230,000 Recorder technology - - - 512,170 512,170 Share Point - - - 50,000 50,000 WAN and disaster recovery - - - 368,996 368,996 Public information technology - - - 6,976 6,976 Asset preservation - - - 5,536,578 5,536,578 Capital improvements - - - 4,242,840 4,242,840 Library projects - - - 266,085 266,085 Squad car purchase - - - 61,881 61,881 Human service imaging - - - 392,352 392,352 Government center re-carpeting - - - 92,121 92,121 Network management - - - 576,416 576,416 Fixed asset assessment - - - 30,000 30,000 Rum River Human Service Center and Cronin Building - - - 809,656 809,656 Sheriff forensic lab - - - 498,858 498,858 Fire paging equipment - - - 5,600 5,600 Corrections surveillance and safety equipment - - - 29,000 29,000 Corrections caged vehicle - - - 24,000 24,000 800 MHz channel addition - - - 49,750 49,750 Elevator upgrade - - - 1,049,958 1,049,958 Criminal justice hub - - - 425,640 425,640 Recycling dumpster move to government center - - - 25,439 25,439 Building updates - - - 80,592 80,592 Law enforcement range - - - 824,076 824,076 Courts remodel - - - 685,246 685,246 Highway building reconfiguration - - - 531,927 531,927 Highway facility computer hardware/software - - - 40,989 40,989 Highway road construction - - - 1,793,508 1,793,508 Household hazardous waste projects - - - 7,306,689 7,306,689 Connect Anoka County broadband - - - 964,666 964,666 Master condition assessment - - - 37,588 37,588 Total Assigned 4,659,222 $ 48,406,868 $ - $ 37,735,828 $ 90,801,918 $ 52 ---PAGE BREAK--- ANOKA COUNTY ANOKA, MINNESOTA 3. Detailed Notes on All Funds (Continued) E. Employee Retirement Systems and Pension Plans 1. Defined Benefit Pension Plan a. Plan Description All full-time and certain part-time employees of Anoka County are covered by defined benefit pension plans administered by the Public Employees Retirement Association of Minnesota (PERA). PERA administers the General Employees Retirement Fund, the Public Employees Police and Fire Fund, and the Local Government Correctional Service Retirement Fund (the Public Employees Correctional Fund), which are cost-sharing, multiple-employer retirement plans. These plans are established and administered in accordance with Minn. Stat. chs. 353 and 356. General Employees Retirement Fund members belong to either the Coordinated Plan or the Basic Plan. Coordinated Plan members are covered by Social Security and Basic Plan members are not. All new members must participate in the Coordinated Plan and benefits vest after three years of credited service (five years for those first eligible for membership after June 30, 2010). All police officers, firefighters, and peace officers who qualify for membership by statute are covered by the Public Employees Police and Fire Fund. Members who are employed in a county correctional institution as a correctional guard or officer, a joint jailer/dispatcher, or as a supervisor of correctional guards or officers or of joint jailer/dispatchers and are directly responsible for the direct security, custody, and control of the county correctional institution and its inmates, are covered by the Public Employees Correctional Fund. For members first eligible for membership after June 30, 2010, benefits vest on a graduated schedule starting with 50 percent after five years and increasing 10 percent for each year of service until fully vested after ten years. Members eligible for membership before July 1, 2010, are fully vested after three years of service. PERA provides retirement benefits as well as disability benefits to members and benefits to survivors upon death of eligible members. Benefits are established by state statute. Defined retirement benefits are based on a member’s average yearly salary for the five highest-paid consecutive years of allowable service, age, and years of credit at termination of service. Two methods are used to compute benefits for General Employees Retirement Fund Coordinated and Basic Plan members. The retiring member receives the higher of a step-rate benefit accrual formula (Method 1) or a level accrual formula (Method Under Method 1, the annuity accrual rate for a Basic Plan member is 2.2 percent of average salary for each of the first ten years of service and 2.7 percent for each year thereafter. For a Coordinated Plan member, the annuity accrual rate is 1.2 percent of average salary for each of the first ten years and 1.7 percent for each successive year. Under Method 2, the annuity accrual rate is 2.7 percent of average salary for Basic Plan members and 1.7 percent for Coordinated Plan members for each year of service. For Public Employees Police and Fire Fund members, the annuity accrual rate is 3.0 percent of average salary for each year of service. For Public Employees Correctional Fund members, the annuity accrual rate is 1.9 percent of average salary for each year of service. For all General Employees Retirement Fund members hired prior to July 1, 1989, whose annuity is calculated using Method 1, and for all Public Employees Police and Fire Fund and Public Employees Correctional Fund members, a full annuity is available when age plus years of service equal 90. Normal retirement age is 55 for Public Employees Police and Fire Fund members and Public Employees Correctional Fund members, and either 65 or 66 (depending on date hired) for General Employees Retirement Fund members. A reduced retirement annuity is also available to eligible members seeking early retirement. The benefit provisions stated in the previous paragraphs of this section are current provisions and apply to active plan participants. Vested, terminated employees who are entitled to benefits but are not yet receiving them are bound by the provisions in effect at the time they last terminated public service. PERA issues a publicly available financial report that includes financial statements and required supplementary information for the General Employees Retirement Fund, the Public Employees Police and Fire Fund, and the Public Employees Correctional Fund. That report may be obtained on the Internet at www.mnpera.org; by writing to PERA at 60 Empire Drive, Suite 200, Saint Paul, Minnesota 55103-2088; or by calling [PHONE REDACTED] or 1-[PHONE REDACTED]. b. Funding Policy Pension benefits are funded from member and employer contributions and income from the investment of fund assets. Rates for employer and employee contributions are set by Minn. Stat. Ch. 353. These statutes are established and amended by the State Legislature. The County makes annual contributions to the pension plans equal to the amount required by state statutes. General Employees Retirement Fund Basic Plan members and Coordinated Plan members are required to contribute 9.10 and 6.25 percent, respectively, of their annual covered salary. Public Employees Police and Fire Fund members are required to contribute 9.60 percent. Public Employees Correctional Fund members are required to contribute 5.83 percent of their annual covered salary. The County is required to contribute the following percentages of annual covered payroll in 2012 and 2013: 2012 2013 General Employees Retirement Fund Basic Plan members 11.78% 11.78% Coordinated Plan members 7.25 7.25 Public Employees Police and Fire Fund 14.40 14.40 Public Employees Correctional Fund 8.75 8.75 53 ---PAGE BREAK--- ANOKA COUNTY ANOKA, MINNESOTA 3. Detailed Notes on All Funds E. Employee Retirement Systems and Pension Plans 1. Defined Benefit Pension Plan b. Funding Policy (Continued) The County’s contributions for the years ending December 31, 2012, 2011, 2010, for the General Employees Retirement Fund, the Public Employees Police and Fire Fund, and the Public Employees Correctional Fund were: 2012 2011 2010 General Employees Retirement Fund 6,218,521 $ 6,442,401 $ 6,361,775 $ Public Employees Police and Fire Fund 1,373,778 1,340,689 1,324,302 Public Employees Correctional Fund 874,101 872,275 875,471 These contribution amounts are equal to the contractually required contributions for each year as set by state statute. 2. Defined Contribution Plan Five employees of Anoka County are covered by the Public Employees Defined Contribution Plan, a multiple-employer, deferred compensation plan administered by PERA. The plan is established and administered in accordance with Minn. Stat. Ch. 353D, which may be amended by the State Legislature. The plan is a tax qualified plan under Section 401(a) of the Internal Revenue Code, and all contributions by or on behalf of employees are tax deferred until time of withdrawal. Plan benefits depend solely on amounts contributed to the plan plus investment earnings, less administrative expenses. For those qualified personnel who elect to participate, Minn. Ch. 353D.03 specifies plan provisions, including the employee and employer contribution rates. An eligible elected official who decides to participate contributes 5.0 percent of salary, which is matched by the employer. Employees may elect to make member contributions in an amount not to exceed the employer share. Employee and employer contributions are combined and used to purchase shares in one or more of the seven accounts of the Minnesota Supplemental Investment Fund. For administering the plan, PERA receives 2.0 percent of employer contributions and 0.25 percent of the assets in each member account annually. The employee and employer contributions were $25,479 each during the year ended December 31, 2012. This was equal to the required 5.0 percent contribution rate of covered payroll. F. Risk Management The County is exposed to various losses resulting from tort related claims, theft, damage and destruction of assets; and injuries to employees, for which the County self-funds for losses or purchases commercial insurance to cover the risk exposures. There were no significant reductions in insurance from the prior year. Settled claims from these risks have not exceeded available commercial insurance coverage for the past three years. Property Insurance: Real and personal property are insured under a blanket property insurance policy. The property insurance includes structure, contents, boiler and machinery, business interruptions, extra expense, electrical data processing equipment, electrical/portable equipment, machinery and media for losses, including earthquake and flood damage. Automobile: All automobiles are insured under blanket policy for liability, collision and physical damage. Workers’ Compensation: In 2002, the County became self-insured for workers’ compensation exposure and contracted with RTW, Inc. to administer its workers’ compensation claims. The means for establishing liabilities are based on the nature of the injury, occupational wage and duration of the injuries. Risk Management reports liabilities that have occurred by developing incurred loss for the year using factors established by the International Risk Management Institute and subtracts actual claims paid from the developed incurred loss amount. The difference for each of the years is added together to get the total required reserve amount. Changes in the balances of claim liabilities for the past two years are: 2012 2011 Unpaid claims, January 1 1,029,857 $ 2,107,837 $ Self-funded claims 351,105 226,438 Adjustments 125,975 (1,235,473) Claim payments (443,973) (68,945) Unpaid claims, December 31 1,062,964 $ 1,029,857 $ Due within one year 257,626 $ Adjustments include differences between the estimated claim liability of unpaid claims at the beginning of the year and actual claim payments made. Anoka County has elected lower self-insurance retention since becoming self-insured in 2002. The self-insurance retention limit for 2012 workers’ compensation claims is $460,000 per occurrence for all claims occurring in 2012. 54 ---PAGE BREAK--- ANOKA COUNTY ANOKA, MINNESOTA 3. Detailed Notes on All Funds F. Risk Management (Continued) Liability: Anoka County has been self-insured for General Liability (including law enforcement, public officials and errors and omissions liability) since September 1, 1986. The County Attorney’s Office and the Risk Management department administer all liability claims internally. Risk Management pays out all claims from the Pooled Insurance Internal Service Fund dedicated to liability claims. Risk Management allocated costs to each division based on modified exposure and experience rating plan. Anoka County fully utilizes Minn. Stat. Sec. 466.04 maximum liability and thus does not purchase any excess insurance. Minn. Stat. Sec. 466.04 limits the tort exposure to: Per Person Per Occurrence All claims before 01/01/1998 200,000 $ 600,000 $ Claims from 01/01/1998 to 12/31/1999 300,000 750,000 Claims from 01/01/2000 to 12/31/2007 300,000 1,000,000 Claims from 01/01/2008 to 07/01/2009 400,000 1,200,000 Claims on or after 07/01/2009 500,000 1,500,000 Health and Dental: The County fully insures medical insurance through either Medica or HealthPartners. The County fully insures dental insurance through HealthPartners. G. Joint Ventures Anoka County, in conjunction with other governmental entities, has formed the joint ventures listed below: 1. Metropolitan Emergency Services Board. Anoka County entered into a joint powers agreement with the Counties of Anoka, Carver, Chisago, Dakota, Isanti, Hennepin, Ramsey, Scott and Washington, pursuant to Minnesota Statutes section 471.59 to comply with the mandate of Minnesota Statutes, Chapter 403, for the implementation and administration of a regional 911 system, encourage the development of new resources and the coordination of emergency medical services. Anoka County paid annual dues of $123,052 in 2012. Except for annual dues the County has no other financial obligations. Current financial statements are available at the 911 Board Office, 2099 University Avenue, West St. Paul, MN 55104-3431. 2. Metropolitan Library Service Agency (MELSA). Anoka County entered into a joint powers agreement with the other six metropolitan area counties and the Cities of St. Paul and Minneapolis to improve public library services within the various jurisdictions. One member of each entity comprises the Board of Directors of MELSA. Financing is provided by gifts, grants and programs of the federal government, the State of Minnesota, and other governmental and private sources. The MELSA agency handles the accounting function of the Board. Current financial statements are available from the MELSA office, 1619 Dayton Avenue, Suite 314, St. Paul, MN 55104-6276. 3. Corridor Development Authority (NCDA). Anoka County entered into a joint powers agreement with 24 counties, regional rail authorities, cities and townships along the Corridor to create the Corridor Development Authority, in May 1997. The joint powers board consists of one elected official each from the member governmental units. The NCDA was created to develop the commuter rail project from St. Cloud, Minnesota to Minneapolis, Minnesota. Grant monies, member county contributions and the regional railroad authorities’ agreement to allocate the initial contributions of capital has provided funding for the NCDA. Members pay annual dues to NCDA. In 2012 Anoka County paid dues of $75,365 to the NCDA, which is reflected as an expenditure in the Regional Railroad Authority Special Revenue Fund. The dues for 2013 are anticipated to be $71,310. The NCDA Board has the authority to make all administrative decisions regarding the Commuter Rail. The NCDA does not have the authority to levy taxes nor issue bonds. The NCDA does have the authority to enter into contracts, acquire, hold and dispose of real and personal property. Upon termination of the joint powers agreement, NCDA has the authority to dispose of any property. The joint powers agreement does not authorize the NCDA to operate or finance the operations of the commuter rail. Sherburne County, in an agency capacity, reports the cash transactions of the NCDA in an agency fund on its financial statements. Current financial statements are available from the NCDA office, 13880 Business Center Dr. NW, Elk River, MN 55330. 4. Metropolitan Airports Commission (MAC). In August 2005, Anoka County entered into a joint powers agreement with the Metropolitan Airports Commission (MAC) relating to improvements at the Anoka County/Blaine airport (Jane’s Field) Northwest Building Area. The joint powers board is named “Anoka County/Blaine Airport (Jane’s Field) Northwest Building Area Joint Powers Board”, pursuant to Section 360.042 of the Act. The governing body of the Board has two members, one each from Anoka County and MAC. MAC owns and operates the airport, and the agreement sets forth rights, proportionate interests, duties and payment obligations. During 2005, the County issued $15.715 million in general obligation airport improvement bonds for the project and the County’s share of those bonds is 100%. The bonds are reflected in the long-term debt of Anoka County and reported in the County’s financial statement. The County’s share with respect to capital improvement expenditures is equal to the principal amount of the bonds. Those expenditures are reported in Anoka County’s Capital Projects Fund. The County will levy property taxes to repay the bonds. MAC’s share of the bonds is and their share of the capital improvement expenditures is equal to the amount of federal funds that MAC receives, plus any unreimbursed costs incurred by MAC. The federal funds will be used by MAC for capital improvements and will not be transferred to the County, nor pledged for payment of the bonds. MAC is not obligated to contribute funds or property from the operation of the airport for payment of the bonds. 55 ---PAGE BREAK--- ANOKA COUNTY ANOKA, MINNESOTA 3. Detailed Notes on All Funds G. Joint Ventures 4. Metropolitan Airports Commission (MAC) (Continued) In consideration of the County for issuing bonds, MAC has agreed to allow the County the right to sublease the Northwest Building Area and the County will use lease revenues to offset the cost of County issued general obligation bonds for capital improvements at the airport. 5. Rush Line Corridor Task Force. In April 2007, Anoka County entered into a joint powers agreement with three regional rail authorities, 13 cities, and five townships to analyze the feasibility and environmental impacts of transportation improvements along the Rush Line Corridor. Each governmental unit appoints one member having one vote. Funding for the Rush Line Corridor Task Force is with federal and state grant monies and contributions from the member organizations. 6. Counties Transit Improvement Board (CTIB). CTIB was created on April 1, 2008, as required by Minn. Statute Section 297A.992, by joint powers agreement between the counties of Anoka, Dakota, Hennepin, Ramsey, and Washington. Its purpose is to receive and distribute a ¼ cent transit sales tax for the development, construction and operation of transit ways serving the five-county area. Hennepin County is the fiscal agent. Financial statements are available from Hennepin County, Department of Finance, 300 South Sixth Street, A-2301 Government Center, Minneapolis, Minnesota 55487. 4. Summary of Significant Contingencies and Other Items A. Claims and Litigation Anoka County, in connection with the normal conduct of its affairs, is involved in various claims, judgments, and litigation. The County Attorney estimates that the potential claims against the County not covered by insurance resulting from such litigation would not materially affect the financial position of the County. Based on the information that Anoka County presently has, the County’s total exposure for these cases would not exceed the statutory limit, with the evaluation of an unfavorable outcome varying with each case. Accordingly, in the remote case of an unfavorable outcome, the provision for loss in the financial statements for resolution of these matters may require an adjustment to the financial statements. B. Related Organization The Coon Creek Watershed District is governed by a Watershed District Board appointed by the Anoka County Board of Commissioners from a given list of nominees. A watershed district is comprised of a geographic area, which is affected by the watershed from a particular source. The Watershed District Board in each district is responsible for initiating and overseeing certain actions such as ditching, ditch maintenance, engineering, and ditch repair. The costs of these actions, plus the associated administrative costs, must be borne by the "benefited" property owners within each district, through a special assessment against the benefited property. There is no corresponding financial accountability necessary for including this organization as a component unit of Anoka County. Financial statements are available upon request at the Coon Creek Watershed District Office, 12301 Central Avenue Northeast, Suite 100, Blaine, Minnesota 55434. C. Subsequent Event On February 5, 2013, the County Board issued $20,145,000 General Obligation Refunding Bonds, Series 2013A. 56 ---PAGE BREAK--- REQUIRED SUPPLEMENTARY INFORMATION ---PAGE BREAK--- Schedule 1 Variance with Final Budget Actual Positive Original Final Amounts (Negative) Revenues Taxes 51,007,336 $ 51,007,336 $ 50,675,280 $ (332,056) $ Licenses and permits 1,660 162,855 239,855 77,000 Intergovernmental 19,380,786 19,997,023 20,380,831 383,808 Charges for services 27,307,908 27,496,764 28,357,490 860,726 Fines and forfeits 9,000 9,000 4,458 (4,542) Investment income 3,145,000 3,145,000 2,769,767 (375,233) Miscellaneous 3,071,795 4,486,691 5,187,702 701,011 Total Revenues 103,923,485 106,304,669 107,615,383 1,310,714 Expenditures Current General government Management appropriations 862,562 862,562 796,933 65,629 Information technology 3,091,202 2,945,709 2,651,448 294,261 Intergovernmental relations 188,980 204,440 204,152 288 Regional associations 195,000 195,000 194,379 621 County administration 897,823 890,823 833,234 57,589 Human resources 1,241,992 1,242,337 1,118,758 123,579 Property tax administration and collection 6,387,358 6,597,874 5,909,900 687,974 License bureau 2,846,022 2,635,506 2,483,029 152,477 Internal audit and compliance 242,297 242,297 217,702 24,595 Election services 390,805 546,805 546,713 92 Attorney 7,953,255 7,924,755 7,885,264 39,491 Public services 518,815 570,815 508,047 62,768 Surveyor 985,079 1,019,079 992,200 26,879 Facilities management and construction 178,521 619,901 585,912 33,989 Veterans services 426,144 521,226 484,888 36,338 Geographic information system 213,019 213,939 213,899 40 Transit and volunteer transportation 3,407,399 3,482,399 3,468,611 13,788 Accounting and central services 2,793,893 3,051,595 2,853,274 198,321 Courts administration 1,384,389 1,410,389 1,410,118 271 Public information 462,792 476,335 475,107 1,228 Government services 217,558 217,558 181,730 35,828 Miscellaneous 449,259 449,259 3,359,117 (2,909,858) Total general government 35,334,164 36,320,603 37,374,415 (1,053,812) Public safety Sheriff 28,045,913 28,636,121 28,620,548 15,573 Central communications 3,583,323 $ 3,568,323 $ 3,514,270 $ 54,053 $ (Continued) Budgeted Amounts FOR THE YEAR ENDED DECEMBER 31, 2012 ANOKA COUNTY ANOKA, MINNESOTA SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCE BUDGET AND ACTUAL GENERAL FUND The notes to the required supplementary information are an integral part of this statement. 58 ---PAGE BREAK--- Schedule 1 (Continued) Variance with Final Budget Actual Positive Original Final Amounts (Negative) Expenditures Current Public safety (Continued) Emergency management 232,377 $ 668,953 $ 668,953 $ - $ Corrections 23,611,723 23,693,685 21,454,553 2,239,132 Medical examiner 2,153,202 2,153,202 2,018,823 134,379 Total public safety 57,626,538 58,720,284 56,277,147 2,443,137 Human services Community action program 343,567 343,567 343,567 - Sanitation Solid waste 2,625,824 2,667,929 2,390,853 277,076 R.D.F. administration 2,466,947 2,466,947 2,118,394 348,553 Total sanitation 5,092,771 5,134,876 4,509,247 625,629 Culture and recreation Historical society 209,255 209,255 194,255 15,000 Conservation of natural resources Soil and water conservation district 151,492 151,492 148,992 2,500 Total Expenditures 98,757,787 100,880,077 98,847,623 2,032,454 Excess of Revenues Over (Under) Expenditures 5,165,698 5,424,592 8,767,760 3,343,168 Other Financing Sources (Uses) Transfers in 58,804 721,238 694,934 (26,304) Transfers out (1,717,539) (9,204,899) (8,893,937) 310,962 Total Other Financing Sources (Uses) (1,658,735) (8,483,661) (8,199,003) 284,658 Net Change in Fund Balance 3,506,963 (3,059,069) 568,757 3,627,826 Fund Balance - January 1 46,600,309 46,600,309 46,600,309 - Fund Balance - December 31 50,107,272 $ 43,541,240 $ 47,169,066 $ 3,627,826 $ FOR THE YEAR ENDED DECEMBER 31, 2012 Budgeted Amounts ANOKA COUNTY ANOKA, MINNESOTA BUDGET AND ACTUAL GENERAL FUND SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCE The notes to the required supplementary information are an integral part of this statement. 59 ---PAGE BREAK--- Schedule 2 Variance with Final Budget Actual Positive Original Final Amounts (Negative) Revenues Taxes 8,506,889 $ 8,506,889 $ 8,502,578 $ (4,311) $ Licenses and permits 50,600 50,600 72,982 22,382 Intergovernmental 60,580,409 60,580,409 33,739,222 (26,841,187) Charges for services 1,100 1,100 73,235 72,135 Investment income 30,000 30,000 25,346 (4,654) Miscellaneous 141,600 141,600 298,430 156,830 Total Revenues 69,310,598 69,310,598 42,711,793 (26,598,805) Expenditures Current Highways and streets Administration 1,215,112 1,280,112 990,602 289,510 Maintenance 8,406,858 8,427,719 7,556,892 870,827 Construction 69,987,018 71,687,018 52,339,531 19,347,487 Equipment maintenance and shops 2,591,251 2,591,251 2,568,575 22,676 Intergovernmental Highways and streets - - 27,344 (27,344) Total Expenditures 82,200,239 83,986,100 63,482,944 20,503,156 Excess of Revenues Over (Under) Expenditures (12,889,641) (14,675,502) (20,771,151) (6,095,649) Other Financing Sources (Uses) Transfers in - 1,700,000 1,700,000 - Transfers out - (74,500) (82,000) (7,500) Total Other Financing Sources (Uses) - 1,625,500 1,618,000 (7,500) Net Change in Fund Balance (12,889,641) (13,050,002) (19,153,151) (6,103,149) Fund Balance - January 1 13,224,424 13,224,424 13,224,424 - Increase (decrease) in inventories - - 36,448 36,448 Fund Balance - December 31 334,783 $ 174,422 $ (5,892,279) $ (6,066,701) $ FOR THE YEAR ENDED DECEMBER 31, 2012 Budgeted Amounts ANOKA COUNTY ANOKA, MINNESOTA SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCE BUDGET AND ACTUAL ROAD AND BRIDGE SPECIAL REVENUE FUND The notes to the required supplementary information are an integral part of this statement. 60 ---PAGE BREAK--- Schedule 3 Variance with Final Budget Actual Positive Original Final Amounts (Negative) Revenues Taxes 30,886,949 $ 30,886,949 $ 30,314,003 $ (572,946) $ Licenses and permits 962,751 962,751 969,904 7,153 Intergovernmental 42,620,086 42,784,715 42,848,850 64,135 Charges for services 2,246,714 2,246,714 2,191,974 (54,740) Investment income 9,000 9,000 16,868 7,868 Miscellaneous 2,601,891 2,601,891 2,938,494 336,603 Total Revenues 79,327,391 79,492,020 79,280,093 (211,927) Expenditures Current Human services Economic assistance 25,300,595 25,617,960 24,978,671 639,289 Social services 32,019,156 32,081,253 29,347,876 2,733,377 Mental health 10,544,425 10,546,133 9,652,317 893,816 Community health 10,660,122 10,667,452 9,923,849 743,603 Total Expenditures 78,524,298 78,912,798 73,902,713 5,010,085 Excess of Revenues Over (Under) Expenditures 803,093 579,222 5,377,380 4,798,158 Other Financing Sources (Uses) Transfers in - 50,002 50,002 - Transfers out - (4,763,948) (4,763,948) - Total Other Financing Sources (Uses) - (4,713,946) (4,713,946) - Net Change in Fund Balance 803,093 (4,134,724) 663,434 4,798,158 Fund Balance - January 1 28,866,389 28,866,389 28,866,389 - Fund Balance - December 31 29,669,482 $ 24,731,665 $ 29,529,823 $ 4,798,158 $ FOR THE YEAR ENDED DECEMBER 31, 2012 Budgeted Amounts ANOKA COUNTY ANOKA, MINNESOTA SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCE BUDGET AND ACTUAL HUMAN SERVICES SPECIAL REVENUE FUND The notes to the required supplementary information are an integral part of this statement. 61 ---PAGE BREAK--- ANOKA COUNTY ANOKA, MINNESOTA NOTES TO THE REQUIRED SUPPLEMENTARY INFORMATION DECEMBER 31, 2012 1. Budgetary Information General Budget Policies: The County Board adopts calendar-year budgets for the General and Special Revenue Funds by the final County Board meeting in December of the previous year. The Community Development Block Grant Fund and the Job Training Center Fund, for which expenditures are 100 percent reimbursed from the State or Federal government, are not budgeted. For these exceptions, program changes and the resulting expenditures cannot be determined on an annual basis. Similarly, a budget is not adopted for the Forfeiture Funds Special Revenue Fund because it accounts for the proceeds from forfeited property, which cannot be determined on an annual basis. Each appropriation lapses at the close of the fiscal year to the extent it has not been expended. The County maintains a budgetary control system that compares actual revenues and expenditures to budgeted amounts by division/department. Appropriations are monitored at the major account code level within each division/department. Minnesota County Financial Accounting and Reporting Standards require the County to report the revenues and expenditures by function, without regard to the budgeted division/department adopted by the County Board. One division/department may have budget and actual expenditures in various functions and on various lines of the financial statement. County Board authorization is required for budget adjustments or transfers, which increase the division/department’s adopted net (appropriations less non-tax revenues) budget. Budget Basis of Accounting: Budgets are adopted on a basis consistent with generally accepted accounting principles. Encumbrances: Encumbrance accounting, under which commitments for the expenditure of monies are recorded in order to reserve that portion of the applicable appropriation, is used in the governmental funds. Encumbrances lapse at year-end and are re-budgeted the following year. 2. Excess of Expenditures Over Budget The following departments/divisions have expenditures in excess of budget for the year ended December 31, 2012: Final Budget Actual Excess Major Governmental Funds General Fund Current General Government Miscellaneous 449,259 $ 3,359,117 $ 2,909,858 $ Expenditures 3. Other Postemployment Benefits Funding Status Beginning in 2007, Anoka County implemented Governmental Accounting Standards Board (GASB), Statement No. 45, Accounting and Financial Reporting by Employers for Postemployment Benefits Other than Pensions. In 2009, the County established both a revocable and an irrevocable trust, pursuant to MN statutes, ch. 471.6175, to prefund a portion of the liability of the plan. The County issued bonds in September 2009, for the purpose of partially funding its OPEB liability. These funds are reported in the Other Postemployment Benefits Trust Fund and are included in the December 31, 2011, actuarial valuation. Actuarial Valuation Date Actuarial Value of Assets Actuarial Accrued Liability Unfunded Actuarial Accrued Liability Funded Ratio Covered Payroll UAAL as a Percentage of Covered Payroll 12/31/2007 - $ 129,648,121 $ 129,648,121 $ 0.00% 100,641,903 $ 128.82% 12/31/2007 - 129,648,121 129,648,121 0.00% 103,373,137 125.42% 12/31/2009 21,376,934 71,980,996 50,604,062 29.70% 104,653,890 48.35% 12/31/2009 21,376,934 71,980,996 50,604,062 29.70% 104,014,943 48.65% 12/31/2011 29,290,357 69,623,253 40,332,896 42.07% 106,208,139 37.98% 62 ---PAGE BREAK--- ANOKA COUNTY ANOKA, MINNESOTA 4. Employer Contributions to Other Postemployment Benefits For 2012, employer contributions include $1.2 million to an irrevocable OPEB trust, and $2.8 million in direct payments to insurance carriers for benefits. Year Ended Employer Annual Required Percentage December 31 Contributions Contribution (ARC) Contributed 2008 1,812,224 $ 13,167,730 $ 13.76% 2009 22,351,676 13,167,730 169.75% 2010 5,050,487 6,249,243 80.82% 2011 3,639,729 6,251,726 58.22% 2012 4,083,305 5,905,879 69.14% 63 ---PAGE BREAK--- ANOKA COUNTY ANOKA, MINNESOTA This page left blank intentionally. ---PAGE BREAK--- COMBINING AND INDIVIDUAL FUND FINANCIAL STATEMENTS ---PAGE BREAK--- ANOKA COUNTY ANOKA, MINNESOTA NONMAJOR GOVERNMENTAL FUNDS SPECIAL REVENUE FUNDS The Special Revenue Funds are used to account for the proceeds of specific revenue sources that are legally or administratively restricted to expenditures for specified purposes. Job Training Center – to account for the financial transactions pertaining to job training and employment opportunities as financed by federal and state governments for economically disadvantaged, under-employed and unemployed persons, and youthful persons in both the private and public sectors. This activity was authorized by the Job Training Partnership Act (JTPA) and Workforce Investment Act (WIA). County Library – to account for costs associated with providing library services to Anoka County residents. Financing comes primarily from an annual property tax levy and intergovernmental revenue from the State Government. Parks and Recreation – to account for the cost of constructing, improving and maintaining the county parks in Anoka County, and operation of Chomonix Golf Course. Financing comes primarily from an annual property tax levy, intergovernmental revenue from local, State and Federal Governments, and user fees. Cooperative Extension – to account for financial transactions pertaining to educational programs which emphasize decision making skills for individuals, families, and youth through home economics, horticulture, 4-H youth development, and agriculture. Cooperative Extension is the County’s link to research-based information from the University of Minnesota. Financing comes primarily from an annual property tax levy and intergovernmental revenue from the State Government. Law Library – to account for the operations and finances of the law library. Revenues are derived from fees collected from certain litigants, and expenditures are primarily law books and administrative and personal service costs. Community Development Block Grant (CDBG) – to account for the financial operations of federal grants for public building projects, environment improvement, housing rehabilitation, business and individual economic development, and other public purposes. Financing comes primarily from intergovernmental revenues from the State and Federal Governments. Regional Railroad Authority – to account for the revenues and expenditures resulting from the creation of a Commuter Rail Transit System within the County. The Regional Railroad Authority is governed by a seven-member board and has independent taxing authority. Housing and Redevelopment Authority – to account for the revenues and expenditures resulting from the implementation of a redevelopment plan to promote economic development within Anoka County. The Housing and Redevelopment Authority is governed by a seven-member board and has independent taxing authority. Forfeiture Funds – to account for the proceeds from forfeited property, which is used by the County Attorney and the Sheriff’s Department for the purpose of prosecution and narcotics enforcement. 66 ---PAGE BREAK--- Statement 1 Total Job Community Regional Housing and Nonmajor Training County Parks and Cooperative Law Development Railroad Redevelopment Forfeiture Governmental Center Library Recreation Extension Library Block Grant Authority Authority Funds Funds Assets Cash and pooled investments 3,240 $ 7,108,595 $ 2,436,235 $ 318,515 $ 277,789 $ 447,217 $ 8,510,085 $ 8,913,624 $ 102,313 $ 28,117,613 $ Cash and investments with escrow agents - - - - - - - 440,631 - 440,631 Delinquent taxes receivable - 210,687 76,005 9,286 - - 102,870 27,114 - 425,962 Accounts receivable, net 9,928 250,934 116,733 - - 29,048 - 154,395 6,416 567,454 Land held for resale - - - - - 558,440 - - - 558,440 Loan receivable - - - - - 2,791,187 - - - 2,791,187 Due from other governments 56,035 3,733 1,467,866 5,571 24,274 412,688 - - 1,003 1,971,170 Inventories - - 33,808 - - - - - - 33,808 Total Assets 69,203 7,573,949 4,130,647 333,372 302,063 4,238,580 8,612,955 9,535,764 109,732 34,906,265 - Liabilities and Fund Balances Liabilities Accounts payable - 204,395 79,985 1,423 14,866 88,838 3,993 305,015 - 698,515 Salaries payable - 182,757 114,898 4,491 7,018 - 1,830 3,806 - 314,800 Contracts payable - - 483,816 - - - 277,699 - - 761,515 Due to other funds 32,000 - - - - - - - - 32,000 Due to other governments - 14,080 2,309 47,864 - 94 - 18,123 642 83,112 Advances from other funds - - 210,000 - - - - - - 210,000 Deferred revenue 30,817 665,739 963,356 9,286 - 3,560,766 102,870 27,114 - 5,359,948 Total Liabilities 62,817 1,066,971 1,854,364 63,064 21,884 3,649,698 386,392 354,058 642 7,459,890 Fund Balances Nonspendable - - 33,808 - - - - - - 33,808 Restricted - - 332,177 54,766 280,179 588,882 - 440,631 109,090 1,805,725 Committed - 6,506,978 - 215,542 - - - - 6,722,520 Assigned 6,386 - 1,910,298 - - - 8,226,563 8,741,075 - 18,884,322 Total Fund Balances 6,386 6,506,978 2,276,283 270,308 280,179 588,882 8,226,563 9,181,706 109,090 27,446,375 Total Liabilities and Fund Balances 69,203 $ 7,573,949 $ 4,130,647 $ 333,372 $ 302,063 $ 4,238,580 $ 8,612,955 $ 9,535,764 $ 109,732 $ 34,906,265 $ Special Revenue ANOKA COUNTY ANOKA, MINNESOTA COMBINING BALANCE SHEET NONMAJOR GOVERNMENTAL FUNDS DECEMBER 31, 2012 67 ---PAGE BREAK--- Statement 2 Total Job Community Regional Housing and Nonmajor Training County Parks and Cooperative Law Development Railroad Redevelopment Forfeiture Governmental Center Library Recreation Extension Library Block Grant Authority Authority Funds Funds Revenues Taxes - $ 7,040,174 $ 2,350,200 $ 297,521 $ - $ - $ 2,264,985 $ 1,527,725 $ - $ 13,480,605 $ Licenses and permits - - 2,475 - - - - - - 2,475 Intergovernmental 3,189,885 1,129,243 2,662,777 39,972 - 2,918,607 10,231,636 1,450 - 20,173,570 Charges for services 103,713 96,619 1,606,620 45,796 - - - - - 1,852,748 Fines and forfeits - 244,247 - - 378,089 - - - 44,912 667,248 Investment income - - 3,934 - - - 14,984 10,984 - 29,902 Miscellaneous 38,595 117,980 526,846 13,331 553 1,608,645 6,235 2,113,446 - 4,425,631 Total Revenues 3,332,193 8,628,263 7,152,852 396,620 378,642 4,527,252 12,517,840 3,653,605 44,912 40,632,179 Expenditures Current General government - - - - 389,777 - - - 6,093 395,870 Public safety - - - - - - - - 8,305 8,305 Culture and recreation - 7,221,251 7,898,706 - - - - - - 15,119,957 Conservation of natural resources - - - 421,294 - - - - - 421,294 Economic development 3,262,322 - - - - 4,267,350 8,379,175 1,824,900 - 17,733,747 Debt service Principal retirement - - 22,916 - - - - - - 22,916 Interest and fiscal charges - - 2,949 - - - - - - 2,949 Intergovernmental Economic development - - - - - - - 68,981 - 68,981 Total Expenditures 3,262,322 7,221,251 7,924,571 421,294 389,777 4,267,350 8,379,175 1,893,881 14,398 33,774,019 Excess of Revenues Over (Under) Expenditures 69,871 1,407,012 (771,719) (24,674) (11,135) 259,902 4,138,665 1,759,724 30,514 6,858,160 Other Financing Sources (Uses) Transfers in - - 512,300 38,789 - - - - - 551,089 Transfers out (86,639) (93,609) (47,983) - - - (3,632,760) (1,082,978) - (4,943,969) Total Other Financing Sources (Uses) (86,639) (93,609) 464,317 38,789 - - (3,632,760) (1,082,978) - (4,392,880) Net Change in Fund Balances (16,768) 1,313,403 (307,402) 14,115 (11,135) 259,902 505,905 676,746 30,514 2,465,280 Fund Balances - January 1 23,154 5,193,575 2,588,413 256,193 291,314 328,980 7,720,658 8,504,960 78,576 24,985,823 Increase (decrease) in inventories - - (4,728) - - - - - - (4,728) Fund Balances - December 31 6,386 $ 6,506,978 $ 2,276,283 $ 270,308 $ 280,179 $ 588,882 $ 8,226,563 $ 9,181,706 $ 109,090 $ 27,446,375 $ FOR THE YEAR ENDED DECEMBER 31, 2012 Special Revenue ANOKA COUNTY ANOKA, MINNESOTA COMBINING STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES NONMAJOR GOVERNMENTAL FUNDS 68 ---PAGE BREAK--- Schedule 4 Variance with Final Budget Actual Positive Original Final Amounts (Negative) Revenues Taxes 6,286,908 $ 6,286,908 $ 7,040,174 $ 753,266 $ Intergovernmental 984,524 984,524 1,129,243 144,719 Charges for services 114,500 114,500 96,619 (17,881) Fines and forfeits 261,500 261,500 244,247 (17,253) Miscellaneous 110,840 110,840 117,980 7,140 Total Revenues 7,758,272 7,758,272 8,628,263 869,991 Expenditures Current Culture and recreation 7,574,835 7,581,035 7,221,251 359,784 Excess of Revenues Over (Under) Expenditures 183,437 177,237 1,407,012 1,229,775 Other Financing Sources (Uses) Transfers out - (93,609) (93,609) - Net Change in Fund Balance 183,437 83,628 1,313,403 1,229,775 Fund Balance - January 1 5,193,575 5,193,575 5,193,575 - Fund Balance - December 31 5,377,012 $ 5,277,203 $ 6,506,978 $ 1,229,775 $ ANOKA COUNTY Budgeted Amounts SPECIAL REVENUE FUND FOR THE YEAR ENDED DECEMBER 31, 2012 COUNTY LIBRARY ANOKA, MINNESOTA SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCE BUDGET AND ACTUAL 69 ---PAGE BREAK--- Schedule 5 Variance with Final Budget Actual Positive Original Final Amounts (Negative) Revenues Taxes 2,381,566 $ 2,381,566 $ 2,350,200 $ (31,366) $ Licenses and permits 1,500 1,500 2,475 975 Intergovernmental 593,025 3,175,116 2,662,777 (512,339) Charges for services 1,644,116 1,644,116 1,606,620 (37,496) Investment income - - 3,934 3,934 Miscellaneous 440,950 459,982 526,846 66,864 Total Revenues 5,061,157 7,662,280 7,152,852 (509,428) Expenditures Current Culture and recreation 5,203,690 7,852,260 7,898,706 (46,446) Debt Service Principal retirement 143,490 143,490 22,916 120,574 Interest and fiscal charges 48,010 48,010 2,949 45,061 Total Expenditures 5,395,190 8,043,760 7,924,571 119,189 Excess of Revenues Over (Under) Expenditures (334,033) (381,480) (771,719) (390,239) Other Financing Sources (Uses) Transfers in 530,000 587,300 512,300 (75,000) Transfers out (81,000) (203,504) (47,983) 155,521 Total Other Financing Sources (Uses) 449,000 383,796 464,317 80,521 Net Change in Fund Balance 114,967 2,316 (307,402) (309,718) Fund Balance - January 1 2,588,413 2,588,413 2,588,413 - Increase (decrease) in inventories - - (4,728) (4,728) Fund Balance - December 31 2,703,380 $ 2,590,729 $ 2,276,283 $ (314,446) $ FOR THE YEAR ENDED DECEMBER 31, 2012 Budgeted Amounts ANOKA COUNTY ANOKA, MINNESOTA SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCE BUDGET AND ACTUAL PARKS AND RECREATION SPECIAL REVENUE FUND 70 ---PAGE BREAK--- Schedule 6 Variance with Final Budget Actual Positive Original Final Amounts (Negative) Revenues Taxes 303,044 $ 303,044 $ 297,521 $ (5,523) $ Intergovernmental 40,862 40,862 39,972 (890) Charges for services 5,000 40,795 45,796 5,001 Miscellaneous 12,000 12,000 13,331 1,331 Total Revenues 360,906 396,701 396,620 (81) Expenditures Current Conservation of natural resources 348,535 423,119 421,294 1,825 Excess of Revenues Over (Under) Expenditures 12,371 (26,418) (24,674) 1,744 Other Financing Sources (Uses) Transfers in - 38,789 38,789 - Net Change in Fund Balance 12,371 12,371 14,115 1,744 Fund Balance - January 1 256,193 256,193 256,193 - Fund Balance - December 31 268,564 $ 268,564 $ 270,308 $ 1,744 $ FOR THE YEAR ENDED DECEMBER 31, 2012 Budgeted Amounts ANOKA COUNTY ANOKA, MINNESOTA SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCE BUDGET AND ACTUAL COOPERATIVE EXTENSION SPECIAL REVENUE FUND 71 ---PAGE BREAK--- Schedule 7 Variance with Final Budget Actual Positive Original Final Amounts (Negative) Revenues Fines and forfeits 402,296 $ 402,296 $ 378,089 $ (24,207) $ Miscellaneous 900 900 553 (347) Total Revenues 403,196 403,196 378,642 (24,554) Expenditures Current General government 403,983 403,983 389,777 14,206 Net Change in Fund Balance (787) (787) (11,135) (10,348) Fund Balance - January 1 291,314 291,314 291,314 - Fund Balance - December 31 290,527 $ 290,527 $ 280,179 $ (10,348) $ FOR THE YEAR ENDED DECEMBER 31, 2012 Budgeted Amounts ANOKA COUNTY ANOKA, MINNESOTA SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCE BUDGET AND ACTUAL LAW LIBRARY SPECIAL REVENUE FUND 72 ---PAGE BREAK--- Schedule 8 Variance with Final Budget Actual Positive Original Final Amounts (Negative) Revenues Taxes 2,247,751 $ 2,247,751 $ 2,264,985 $ 17,234 $ Intergovernmental - 7,664,669 10,231,636 2,566,967 Investment income - - 14,984 14,984 Miscellaneous - - 6,235 6,235 Total Revenues 2,247,751 9,912,420 12,517,840 2,605,420 Expenditures Current Economic development 729,757 8,394,426 8,379,175 15,251 Excess of Revenues Over (Under) Expenditures 1,517,994 1,517,994 4,138,665 2,620,671 Other Financing Sources (Uses) Transfers out (2,158,251) (3,858,251) (3,632,760) 225,491 Net Change in Fund Balance (640,257) (2,340,257) 505,905 2,846,162 Fund Balance - January 1 7,720,658 7,720,658 7,720,658 - Fund Balance - December 31 7,080,401 $ 5,380,401 $ 8,226,563 $ 2,846,162 $ FOR THE YEAR ENDED DECEMBER 31, 2012 Budgeted Amounts ANOKA COUNTY ANOKA, MINNESOTA SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCE BUDGET AND ACTUAL REGIONAL RAILROAD AUTHORITY SPECIAL REVENUE FUND 73 ---PAGE BREAK--- Schedule 9 Variance with Final Budget Actual Positive Original Final Amounts (Negative) Revenues Taxes 1,519,767 $ 1,519,767 $ 1,527,725 $ 7,958 $ Intergovernmental 1,450 1,450 1,450 - Investment income 12,365 12,365 10,984 (1,381) Miscellaneous 2,061,706 2,061,706 2,113,446 51,740 Total Revenues 3,595,288 3,595,288 3,653,605 58,317 Expenditures Current Economic development County 600,908 600,908 524,057 76,851 Cities 1,018,146 1,018,146 141,948 876,198 Willows Senior Housing 199,966 199,966 240,565 (40,599) Chauncey-Barett Gardens Senior Housing 209,114 209,114 228,862 (19,748) Savannah Oaks Senior Housing 247,294 247,294 264,228 (16,934) Oaks of Lake George Senior Housing 276,785 276,785 301,240 (24,455) Ice Arena - - 124,000 (124,000) Intergovernmental Economic development 54,547 54,547 68,981 (14,434) Total Expenditures 2,606,760 2,606,760 1,893,881 712,879 Excess of Revenues Over (Under) Expenditures 988,528 988,528 1,759,724 771,196 Other Financing Sources (Uses) Transfers out (1,141,648) (1,141,648) (1,082,978) 58,670 Net Change in Fund Balance (153,120) (153,120) 676,746 829,866 Fund Balance - January 1 8,504,960 8,504,960 8,504,960 - Fund Balance - December 31 8,351,840 $ 8,351,840 $ 9,181,706 $ 829,866 $ FOR THE YEAR ENDED DECEMBER 31, 2012 Budgeted Amounts ANOKA COUNTY ANOKA, MINNESOTA SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCE BUDGET AND ACTUAL HOUSING AND REDEVELOPMENT AUTHORITY SPECIAL REVENUE FUND 74 ---PAGE BREAK--- Statement 3 Balance Balance January 1 Additions Deductions December 31 Assets Cash and pooled investments 8,367,215 $ 327,646,281 $ 327,527,737 $ 8,485,759 $ Accounts receivable - 6,382 - 6,382 Due from other governments 1,036,124 300,421 346,445 990,100 Prepaid items 54,673 - 54,673 - Total Assets 9,458,012 327,953,084 327,928,855 9,482,241 Liabilities Accounts payable 1,462,083 4,558,458 4,276,766 1,743,775 Contracts payable 80,636 - 80,636 - Salaries payable 130,584 - 130,584 - Due to other governments 7,784,709 323,394,626 323,440,869 7,738,466 Total Liabilities 9,458,012 $ 327,953,084 $ 327,928,855 $ 9,482,241 $ FOR THE YEAR ENDED DECEMBER 31, 2012 ANOKA COUNTY ANOKA, MINNESOTA STATEMENT OF CHANGES IN ASSETS AND LIABILITIES AGENCY FUND 75 ---PAGE BREAK--- ANOKA COUNTY ANOKA, MINNESOTA This page left blank intentionally. ---PAGE BREAK--- OTHER SUPPLEMENTARY INFORMATION ---PAGE BREAK--- Schedule 10 Interest Maturity Rate Date Fair Value Pooled Deposits and Investments Checking Accounts Non-Interest Bearing Wells Fargo Bank (2,361,821) $ US Bank 380,357 Northeast State Bank 37,837 Village Bank 132,562 21st Century Bank 173,908 US Bank 19,953 Bank of the West 122,864 Interest Bearing US Bank Varies 10,395 Total Checking Accounts (1,483,945) Savings Accounts Northeast State Bank 0.11% 11,489 Community Pride Bank 0.10% 10,493 Village Bank 0.05% 25,693 21st Century Bank 0.10% 17,394 US Bank Varies 16,854 Bank of the West Varies 18,831 Wells Fargo Bank - escrow Varies 3,461,023 Total Savings Accounts 3,561,777 Money Market Accounts with Brokers US Bank Institutional Custody Varies Various 1,188,581 US Bank Cash Portal Varies 19,302,158 Wells Fargo Bank Brokerage Services, LLC Varies 5,004,121 Total Money Market Accounts with Brokers 25,494,860 MAGIC Funds PFM Asset Management, LLC Varies 1,408,522 Certificates of Deposit Community Pride Bank 0.25% 01/17/2013 90,000 U.S. Government Securities US Bank - County Treasury Varies Various 73,426,115 US Bank - Voyageur Varies Various 33,564,158 US Bank - FAF Nuveen Varies Various 33,792,076 US Bank - Institutional Trust Varies Various 21,309,763 Wells Fargo Bank Trust Escrow Varies Various 676,307 Total U.S. Government Securities 162,768,419 Repurchase Agreements Wells Fargo Bank Varies Various 4,575,623 Total Pooled Deposits and Investments 196,415,256 Fund Investments Irrevocable and Revocable Trust Public Employees Retirement Account (PERA) - Other Postemployment Benefits (OPEB) Trust Account Varies Various 34,607,143 Total Deposits and Investments 231,022,399 $ ANOKA COUNTY ANOKA, MINNESOTA SCHEDULE OF DEPOSITS AND INVESTMENTS DECEMBER 31, 2012 78 ---PAGE BREAK--- Schedule 11 Special Revenue Debt Capital General Funds Service Projects Total Fund Schedule 12 Fund Fund All Funds Shared Revenue State Highway users tax - $ 24,438,614 $ - $ - $ 24,438,614 $ Market value credit - agriculture 19,791 20,517 7,521 1,110 48,939 Market value credit - mobile home 13,076 13,096 - 734 26,906 County program aid 6,662,824 6,720,378 - 103,991 13,487,193 Temporary maintenance of effort aid 73,259 - - - 73,259 Disparity reduction credit aid 126 - - - 126 Police state aid 783,715 - - - 783,715 Enhanced 911 aid 492,449 - - - 492,449 Local Performance Aid - - - 50,000 50,000 PERA aid 406,581 - - - 406,581 Payments in lieu of tax 111,807 - - - 111,807 Total Shared Revenue 8,563,628 31,192,605 7,521 155,835 39,919,589 Reimbursement for Services State Human Services 14,465 5,682,488 - - 5,696,953 Grants State Agriculture 5,242 - - - 5,242 Commerce 10,574 - - - 10,574 Health - 1,322,339 - - 1,322,339 Public Safety 258,723 - - - 258,723 Employment and Economic Development - 1,629,989 - - 1,629,989 Natural Resources 50,427 70,631 - - 121,058 Transportation - 713,172 - - 713,172 Human Services 735 11,169,207 - - 11,169,942 Housing Finance - 377,590 - - 377,590 Corrections 4,886,696 - - - 4,886,696 Education 4,420 - - - 4,420 Pollution Control Agency 1,085,929 - - - 1,085,929 Veterans Affairs 10,000 - - - 10,000 Miscellaneous Boards 42,840 11,166 - - 54,006 Total State 6,355,586 15,294,094 - - 21,649,680 Federal Department / Agency Agriculture 260,068 3,009,612 - - 3,269,680 Housing and Urban Development - 2,545,403 - - 2,545,403 Justice 291,064 - - - 291,064 Labor - 1,439,790 - - 1,439,790 Transportation 55,939 9,155,893 - - 9,211,832 Institute of Museum and Library Services - 44,744 - - 44,744 Education 434,057 54,347 - - 488,404 Health and Human Services 561,652 17,479,428 - - 18,041,080 Corporation for National and Community Service - 37,265 - - 37,265 Homeland Security 597,305 17,144 - - 614,449 Total Federal 2,200,085 33,783,626 - - 35,983,711 Local Other - 28,930 - - 28,930 Cities / Counties 406,830 5,338,162 161,546 - 5,906,538 Counties Transit Improvement Board - 3,000,000 - - 3,000,000 Metropolitan Council 2,840,237 2,244,340 - - 5,084,577 Metropolitan Library Service Agency (MELSA) - 197,397 - - 197,397 Total Local 3,247,067 10,808,829 161,546 - 14,217,442 Total Grants 11,802,738 59,886,549 161,546 - 71,850,833 Total Intergovernmental Revenue 20,380,831 $ 96,761,642 $ 169,067 $ 155,835 $ 117,467,375 $ ANOKA COUNTY ANOKA, MINNESOTA COMBINED SCHEDULE OF INTERGOVERNMENTAL REVENUE FOR THE YEAR ENDED DECEMBER 31, 2012 79 ---PAGE BREAK--- Schedule 12 Job Community Regional Housing and Road and Human Training County Parks and Cooperative Development Railroad Redevelopment Bridge Services Center Library Recreation Extension Block Grant Authority Authority Total Shared Revenue State Highway users tax 24,438,614 $ - $ - $ - $ - $ - $ - $ - $ - $ 24,438,614 $ Market value credit - agriculture 2,815 12,075 - 2,457 931 117 - 1,061 1,061 20,517 Market value credit - mobile home 1,860 7,973 - 1,772 615 78 - 409 389 13,096 County program aid 1,365,184 4,091,355 - 882,873 341,189 39,777 - - - 6,720,378 Total Shared Revenue 25,808,473 4,111,403 - 887,102 342,735 39,972 - 1,470 1,450 31,192,605 Reimbursement for Services State Human Services - 5,682,488 - - - - - - - 5,682,488 Grants State Health - 1,322,339 - - - - - - - 1,322,339 Employment and Economic Development - - 1,629,989 - - - - - - 1,629,989 Natural Resources - - - - 70,631 - - - - 70,631 Transportation 713,172 - - - - - - - - 713,172 Human Services - 11,169,207 - - - - - - - 11,169,207 Housing Finance - - - - - - 377,590 - - 377,590 Miscellaneous Boards - 11,166 - - - - - - - 11,166 Total State 713,172 12,502,712 1,629,989 - 70,631 - 377,590 - - 15,294,094 Federal Department / Agency Agriculture - 3,009,612 - - - - - - - 3,009,612 Housing and Urban Development - 4,386 - - - - 2,541,017 - - 2,545,403 Labor - - 1,439,790 - - - - - - 1,439,790 Transportation 5,668,858 - 65,759 - - - - 3,421,276 - 9,155,893 Institute of Museum and Library Services - - - 44,744 - - - - - 44,744 Education - - 54,347 - - - - - - 54,347 Health and Human Services - 17,479,428 - - - - - - - 17,479,428 Corporation for National and Community Service - 37,265 - - - - - - - 37,265 Homeland Security 12,073 - - - 5,071 - - - - 17,144 Total Federal 5,680,931 20,530,691 1,559,896 44,744 5,071 - 2,541,017 3,421,276 - 33,783,626 Local Other 7,374 21,556 - - - - - - - 28,930 Cities / Counties 1,529,272 - - - - - - 3,808,890 - 5,338,162 Counties Transit Improvement Board - - - - - - - 3,000,000 - 3,000,000 Metropolitan Council - - - 2,244,340 - - - - 2,244,340 Metropolitan Library Service Agency (MELSA) - - - 197,397 - - - - - 197,397 Total Local 1,536,646 21,556 - 197,397 2,244,340 - - 6,808,890 - 10,808,829 Total Grants 7,930,749 33,054,959 3,189,885 242,141 2,320,042 - 2,918,607 10,230,166 - 59,886,549 Total Intergovernmental Revenue 33,739,222 $ 42,848,850 $ 3,189,885 $ 1,129,243 $ 2,662,777 $ 39,972 $ 2,918,607 $ 10,231,636 $ 1,450 $ 96,761,642 $ Nonmajor Governmental Funds Major Governmental Funds ANOKA COUNTY ANOKA, MINNESOTA COMBINING SCHEDULE OF INTERGOVERNMENTAL REVENUE SPECIAL REVENUE FUNDS FOR THE YEAR ENDED DECEMBER 31, 2012 80 ---PAGE BREAK--- Schedule 13 Federal Grantor Federal Pass Through Agency CFDA/Project Grant Program Title Number Expenditures U.S. Department of Agriculture Passed through Minnesota Department of Education: Child Nutrition Cluster School Breakfast Program 10.553 51,828 $ National School Lunch Program 10.555 83,707 Passed through Minnesota Department of Health: Special Supplemental Nutrition Program for Women, Infants, and Children 10.557 1,232,104 Passed through Minnesota Department of Human Services: State Administrative Matching Grants for the Supplemental Nutrition Assistance Program 10.561 1,902,041 Total U.S. Department of Agriculture 3,269,680 U.S. Department of Housing and Urban Development Direct: Community Development Block Grants - Entitlement Grants 14.218 2,085,092 Passed through Dakota County Community Development Agency: Home Investment Partnerships Program 14.239 508,865 Passed through Minnesota Department of Health: Asthma Interventions in Public and Assisted Multifamily Housing 14.914 4,386 Total U.S. Department of Housing and Urban Development 2,598,343 U.S. Department of Justice Direct: Grants to Encourage Arrest Policies and Enforcement of Protection Orders Program 16.590 189,735 State Criminal Alien Assistance Program 16.606 18,990 Bulletproof Vest Partnership Program 16.607 8,484 Recovery Act - Edward Byrne Memorial Justice Assistance Grant (JAG) Program - Grants To Units Of Local Government - ARRA 16.804 34,239 Passed through Minnesota Department of Public Safety: Juvenile Accountability Block Grants 16.523 33,479 Public Safety Partnership and Community Policing Grants - ARRA 16.710 6,137 Total U.S. Department of Justice 291,064 U.S. Department of Labor Passed through Minnesota Department of Employment and Economic Development: Senior Community Service Employment Program 17.235 137,851 Workforce Investment Act (WIA) Cluster WIA Adult Program 17.258 374,968 WIA Youth Activities 17.259 367,025 WIA Dislocated Workers Formula Grants 17.278 502,692 Incentive Grants - WIA Section 503 17.267 25,368 Passed through Senior Service America Inc.: Senior Community Service Employment Program 17.235 24,668 Passed through Dakota County: Workforce Investment Act (WIA) Cluster WIA National Emergency Grant - ARRA 17.277 7,218 Total U.S. Department of Labor 1,439,790 U.S. Department of Transportation Passed through Minnesota Department of Transportation: Highway Planning and Construction 20.205 5,486,353 Passed through Metropolitan Council: Federal Transit - Formula Grants 20.507 182,504 Job Access - Reverse Commute Program 20.516 65,759 Passed through the City of Coon Rapids: Highway Safety Cluster State and Community Highway Safety 20.600 2,127 Occupant Protection Incentive Grants 20.602 9,076 Safety Belt Performance Grants 20.609 4,100 Minimum Penalties for Repeat Offenders for Driving While Intoxicated 20.608 40,637 Total U.S. Department of Transportation 5,790,556 Institute of Museum and Library Services Passed through Minnesota Department of Education: Grants to States 45.310 41,040 $ (Continued) ANOKA COUNTY ANOKA, MINNESOTA SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS FOR THE YEAR ENDED DECEMBER 31, 2012 The notes to the Schedule of Expenditure of Federal Awards are an integral part of this schedule. 81 ---PAGE BREAK--- Schedule 13 (Continued) Federal Grantor Federal Pass Through Agency CFDA/Project Grant Program Title Number Expenditures U.S. Department of Education Passed through Centennial School District: Title I Grants to Local Educational Agencies 84.010 254,374 $ Passed through Minnesota Department of Employment and Economic Development: Rehabilitation Services - Vocational Rehabilitation Grants to States 84.126 54,347 Total U.S. Department of Education 308,721 U.S. Department of Health and Human Services Passed through Metropolitan Area Agency on Aging: National Family Caregiver Support, Title III, Part E 93.052 60,000 Passed through Minnesota Secretary of State: Voting Access for Individuals with Disabilities - Grants to States 93.617 4,000 Passed through Minnesota Department of Human Services: Projects for Assistance in Transition from Homelessness (PATH) 93.150 21,828 Promoting Safe and Stable Families 93.556 205,225 Temporary Assistance for Needy Families (TANF) Cluster Temporary Assistance for Needy Families 93.558 3,470,186 Emergency Contingency Fund for Temporary Assistance for Needy Families (TANF) State Program - ARRA 93.714 221,438 Child Support Enforcement 93.563 6,381,732 Refugee and Entrant Assistance - State Administered Program 93.566 432 Child Care and Development Block Grant 93.575 346,956 Community-Based Child Abuse Prevention Grants 93.590 47,903 Adoption Incentive Payments 93.603 2,784 Stephanie Tubbs Jones Child Welfare Services Program 93.645 13,498 Foster Care - Title IV-E 93.658 736,273 Social Service Block Grant 93.667 1,418,774 Chafee Foster Care Independence Program 93.674 28,753 Medical Assistance Program 93.778 4,158,743 Passed through Minnesota Department of Health: Public Health Emergency Preparedness 93.069 240,624 Project Grants and Cooperative Agreements for Tuberculosis Control Programs 93.116 2,000 Universal Newborn Hearing Screening 93.251 2,625 Affordable Care Act (ACA) Maternal, Infant, and Early Childhood Home Visiting Program 93.505 30,142 Immunization Cooperative Agreements 93.268 27,267 Centers for Disease Control and Prevention - Investigations and Technical Assistance 93.283 6,125 Temporary Assistance for Needy Families (TANF) Cluster Temporary Assistance for Needy Families 93.558 342,355 Refugee and Entrant Assistance - Discretionary Grants 93.576 3,000 Maternal and Child Health Services Block Grant to the States 93.994 268,417 Total U.S. Department of Health and Human Services 18,041,080 Corporation for National and Community Service Direct: Retired and Senior Volunteer Program 94.002 37,265 U.S. Department of Homeland Security Passed through Minnesota Department of Natural Resources: Boating Safety Financial Assistance 97.012 65,094 Passed through Minnesota Department of Public Safety: Disaster Grants - Public Assistance (Presidentially Declared Disasters) 97.036 19,464 Emergency Management Performance Grants 97.042 138,489 Homeland Security Grant Program 97.067 409,756 Total U.S. Department of Homeland Security 632,803 Total Federal Awards 32,450,342 $ ANOKA, MINNESOTA SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS FOR THE YEAR ENDED DECEMBER 31, 2012 ANOKA COUNTY The notes to the Schedule of Expenditure of Federal Awards are an integral part of this schedule. 82 ---PAGE BREAK--- ANOKA COUNTY ANOKA, MINNESOTA NOTES TO THE SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS FOR THE YEAR ENDED DECEMBER 31, 2012 1. Reporting Entity The Schedule of Expenditures of Federal Awards presents the activities of federal award programs expended by Anoka County. The County’s reporting entity is defined in Note 1.A to the financial statements. 2. Basis of Presentation The accompanying Schedule of Expenditures of Federal Awards includes the federal grant activity of Anoka County under programs of the federal government for the year ended December 31, 2012. The information in this schedule is presented in accordance with the requirements of Office of Management and Budget (OMB) Circular A-133, Audits of States, Local Governments, and Non-Profit Organizations. Because the schedule presents only a selected portion of the operations of Anoka County, it is not intended to and does not present the financial position, changes in net position, or cash flows of Anoka County. 3. Summary of Significant Accounting Policies Expenditures reported on the schedule are reported on the modified accrual basis of accounting. Such expenditures are recognized following the cost principles contained in OMB Circular A-87, Cost Principles for State, Local and Indian Tribal Governments, wherein certain types of expenditures are not allowable or are limited as to reimbursement. Pass-through grant numbers were not assigned by the pass-through agencies. 4. Reconciliation to Schedule of Intergovernmental Revenues Federal grant revenue per Schedule of Intergovernmental Revenue 35,983,711 $ Grants received more than 120 days after year-end, deferred in 2012 Community Development Block Grants - Entitlement Grants 52,940 Homeland Security Grant Program 206,223 Grants deferred in 2011, recognized as revenue in 2012 Grants to States (3,704) Title I Grants to Local Educational Agencies (75,646) ARRA - Title I Grants to Local Educational Agencies (104,037) Homeland Security Grant Program (187,869) Expenditures reported during 2007-2009 and recognized as revenue in 2012 Federal Transit Capital Investment Grants (3,421,276) Expenditures per Schedule of Expenditures of Federal Awards 32,450,342 $ 5. Subrecipients Of the expenditures presented in the schedule, Anoka County provided federal awards to subrecipients as follows: CFDA Number Program Name Amount Provided to Subrecipients 14.218 Community Development Block Grants - Entitlement Grants $ 2,032,152 14.239 Home Investment Partnerships Program 434,311 16.804 Recovery Act - Edward Byrne Memorial Justice Assistance Grant (JAG) Program - Grants To Units Of Local Government - ARRA 11,467 Total 2,477,930 $ 6. American Recovery and Reinvestment Act The American Recovery and Reinvestment Act of 2009 (ARRA) requires recipients to clearly distinguish ARRA funds from non-ARRA funding. In the schedule, ARRA funds are denoted by the addition of ARRA to the program name. 7. Clusters Clusters of programs are groupings of closely related programs that share common compliance requirements. Total expenditures by cluster are: Child Nutrition Cluster $ 135,535 Workforce Investment Act (WIA) Cluster 1,251,903 Highway Safety Cluster 15,303 Temporary Assistance for Needy Families (TANF) Cluster 4,033,979 83 ---PAGE BREAK--- Schedule 14 Improvements Machinery Construction Buildings and Other than and in Function Total Land Structures Buildings Equipment Infrastructure Software Progress General government 114,097,409 $ 2,906,250 $ 93,874,896 $ 1,374,069 $ 6,845,985 $ - $ 4,766,145 $ 4,330,064 $ Public safety 79,994,342 784,914 61,288,536 228,525 17,691,443 - - 924 Highways and streets 612,931,795 156,292,718 8,014,991 702,581 10,170,558 333,312,744 - 104,438,203 Human services 4,999,780 - 3,792,033 67,932 539,926 - 599,889 - Sanitation 938,550 403,119 514,000 - 21,431 - - - Culture and recreation 82,460,269 28,137,682 24,437,712 20,702,666 7,038,593 - - 2,143,616 Economic development 21,665,322 5,555,929 16,103,914 - 5,479 - - - Total capital assets allocated to functions 917,087,467 $ 194,080,612 $ 208,026,082 $ 23,075,773 $ 42,313,415 $ 333,312,744 $ 5,366,034 $ 110,912,807 $ DECEMBER 31, 2012 ANOKA COUNTY ANOKA, MINNESOTA SCHEDULE OF CAPITAL ASSETS USED IN THE OPERATION OF GOVERNMENTAL FUNDS BY FUNCTION 84 ---PAGE BREAK--- Schedule 15 Capital Assets Capital Assets Jan. 1, 2012 Additions Deductions Transfers Dec. 31, 2012 General government 111,681,530 $ 7,972,231 $ 1,831,424 $ (3,724,928) $ 114,097,409 $ Public safety 79,341,707 1,726,439 944,737 (129,067) 79,994,342 Highways and streets 561,980,684 62,254,715 11,375,367 71,763 612,931,795 Human services 1,175,129 42,419 - 3,782,232 4,999,780 Sanitation 938,550 - - - 938,550 Culture and recreation 81,037,584 3,715,058 2,292,373 - 82,460,269 Economic development 21,665,322 - - - 21,665,322 Total capital assets 857,820,506 $ 75,710,862 $ 16,443,901 $ - $ 917,087,467 $ The transfer column reflects the reassignment of assets among governmental functions. ANOKA COUNTY ANOKA, MINNESOTA SCHEDULE OF CHANGES IN CAPITAL ASSETS USED IN THE OPERATION OF GOVERNMENTAL FUNDS BY FUNCTION DECEMBER 31, 2012 Function 85 ---PAGE BREAK--- Schedule 16 Funds Transfer In Transfer Out Description General Fund Road and Bridge 7,500 $ - $ Vehicle purchase Road and Bridge 74,500 - Voluntary separation program Human Services 105,000 - Approved use of reserves Human Services 287,186 - Voluntary separation program Job Training Center 86,639 - Voluntary separation program County Library 93,609 - Voluntary separation program Parks and Recreation 40,500 - Voluntary separation program Parks and Recreation - 57,300 Approved use of reserves Cooperative Extension - 38,789 2011 AG Preserve credit Debt Service - 1,199,720 Lease revenue debt payments Debt Service - 167,000 East Central Juvenile Center bonds Capital Projects - 44,998 Vehicle purchase Capital Projects - 514,500 Approved use of reserves Capital Projects - 771,630 Recorder's compliance fee Capital Projects - 4,100,000 Building Projects Capital Projects - 1,000,000 Information Technology projects Pooled Insurance Fund - 1,000,000 Pooled Insurance contribution Total General Fund 694,934 8,893,937 Special Revenue Funds Road and Bridge General Fund - 7,500 Vehicle purchase General Fund - 74,500 Voluntary separation program Regional Rail Authority 1,700,000 - Roadway development Total Road and Bridge 1,700,000 82,000 Human Services General Fund - 105,000 Approved use of reserves General Fund - 287,186 Voluntary separation program Capital Projects - 85,000 Approved use of reserves Capital Projects - 3,000,000 Building projects Capital Projects - 1,286,762 Information Technology projects Capital Projects 50,002 - CIP computer projects Total Human Services 50,002 4,763,948 Job Training Center General Fund - 86,639 Voluntary separation program County Library General Fund - 93,609 Voluntary separation program Parks and Recreation General Fund 57,300 - Approved use of reserves General Fund - 40,500 Voluntary separation program Aquatic Center Fund 300,000 - Recreational facility bonds Aquatic Center Fund 155,000 - Coon Rapids Dam purchase Aquatic Center Fund - 7,483 Transfer asset Total Parks and Recreation 512,300 47,983 Cooperative Extension General Fund 38,789 - 2011 AG Preserve credit Regional Rail Authority Road and Bridge - 1,700,000 Roadway development Debt Service - 1,832,760 Transfer for debt service Capital Projects - 100,000 CIP projects Total Regional Rail Authority - 3,632,760 Housing and Redevelopment Authority Debt Service - 232,703 Debt service allocation from operations Debt Service - 274,679 Debt service allocation from operations Debt Service - 241,495 Debt service allocation from operations Debt Service - 334,101 Debt service allocation from operations Total Housing and Redevelopment Authority - 1,082,978 Total Special Revenue Funds 2,301,091 $ 9,789,917 $ (Continued) ANOKA COUNTY ANOKA, MINNESOTA SCHEDULE OF FUND TRANSFERS FOR THE YEAR ENDED DECEMBER 31, 2012 86 ---PAGE BREAK--- Schedule 16 (Continued) Funds Transfer In Transfer Out Description Debt Service Fund General Fund 1,199,720 $ - $ Lease revenue debt payments General Fund 167,000 - East Central Juvenile Center bonds Regional Rail Authority 1,832,760 - Transfer for debt service Housing and Redevelopment Authority 232,703 - Debt service allocation from operations Housing and Redevelopment Authority 274,679 - Debt service allocation from operations Housing and Redevelopment Authority 241,495 - Debt service allocation from operations Housing and Redevelopment Authority 334,101 - Debt service allocation from operations Capital Projects 142,863 - Transfer for debt service Total Debt Service Fund 4,425,321 - Capital Projects Fund General Fund 44,998 - Vehicle purchase General Fund 514,500 - Approved use of reserves General Fund 771,630 - Recorder's compliance fee General Fund 4,100,000 - Building projects General Fund 1,000,000 - Information Technology projects Human Services 3,000,000 - Building projects Human Services 1,286,762 - Information Technology projects Human Services 85,000 - Approved use of reserves Human Services - 50,002 CIP computer project Regional Rail Authority 100,000 - CIP projects Debt Service - 142,863 Transfer for debt service Total Capital Projects Fund 10,902,890 192,865 Proprietary Funds Aquatic Center Fund Parks and Recreation 7,483 - Transfer asset Parks and Recreation - 300,000 Recreational facility bonds Parks and Recreation - 155,000 Coon Rapids Dam purchase Total Aquatic Center Fund 7,483 455,000 Pooed Insurance Fund General Fund 1,000,000 - Pooled Insurance contribution Total Proprietary Funds 1,007,483 455,000 Total All Funds 19,331,719 $ 19,331,719 $ SCHEDULE OF FUND TRANSFERS FOR THE YEAR ENDED DECEMBER 31, 2012 ANOKA COUNTY ANOKA, MINNESOTA 87 ---PAGE BREAK--- Schedule 17 Chauncey- Barett Savannah Oaks of Willows Gardens Oaks Lake George Economic Senior Senior Senior Senior Development Housing Housing Housing Housing Total Revenues Taxes 1,527,725 $ - $ - $ - $ - $ 1,527,725 $ Intergovernmental 1,450 - - - - 1,450 Investment income 10,891 43 7 22 21 10,984 Miscellaneous 157,532 472,236 474,962 524,600 484,116 2,113,446 Total Revenues 1,697,598 472,279 474,969 524,622 484,137 3,653,605 Expenditures Salaries 92,413 46,032 43,380 49,455 41,755 273,035 Other services and charges 697,591 194,534 185,482 214,773 259,485 1,551,865 Intergovernmental 465 12,148 16,669 10,000 29,699 68,981 Total Expenditures 790,469 252,714 245,531 274,228 330,939 1,893,881 Excess of Revenues Over (Under) Expenditures 907,129 219,565 229,438 250,394 153,198 1,759,724 Other Financing Sources (Uses) Transfers in 154,660 * - 33,543 * - 80,862 * 269,065 Transfers out (364,216) * (232,703) (257,486) (241,495) (256,143) (1,352,043) Total Other Financing Sources (Uses) (209,556) (232,703) (223,943) (241,495) (175,281) (1,082,978) Net Change in Fund Balances 697,573 (13,138) 5,495 8,899 (22,083) 676,746 Fund Balances - January 1 7,301,308 473,549 67,843 462,819 199,441 8,504,960 Fund Balances - December 31 7,998,881 $ 460,411 $ 73,338 $ 471,718 $ 177,358 $ 9,181,706 $ * Transfers between Economic Development and the senior housing projects of $269,065 is eliminated on the Combining Statement of Revenues, Expenditures, and Changes in Fund Balances. FOR THE YEAR ENDED DECEMBER 31, 2012 ANOKA COUNTY ANOKA, MINNESOTA SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCE HOUSING AND REDEVELOPMENT AUTHORITY SPECIAL REVENUE FUND PROJECTS 88 ---PAGE BREAK--- ANOKA COUNTY ANOKA, MINNESOTA STATISTICAL SECTION ---PAGE BREAK--- ANOKA COUNTY ANOKA, MINNESOTA STATISTICAL SECTION DECEMBER 31, 2012 This part of Anoka County's comprehensive annual financial report presents detailed information as a context for understanding what the information in the financial statements, note disclosures, and required supplementary information says about the County's overall financial health. Contents Tables Financial Trends These schedules contain trend information to help the reader understand how 1 to 4 the County's financial performance and well-being have changed over time. Revenue Capacity These schedules contain information to help the reader assess the County's 5 to 8 most significant local revenue source, the property tax. Debt Capacity These schedules present information to help the reader assess the affordability 9 to 13 of the County's current levels of outstanding debt and the County's ability to issue additional debt in the future. Demographic and Economic Information These schedules offer demographic and economic indicators to help the reader 14 to 16 understand the environment within which the County's financial activities take place. Operating Information These schedules contain service and infrastructure data to help the reader 17 to 21 understand how the information in the County's financial report relates to the services the County provides and the activities it performs. Sources: Unless otherwise noted, the information in these schedules is derived from the comprehensive annual financial report for the relevant year. 90 ---PAGE BREAK--- Table 1 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 Governmental Activities: Net investment in capital assets 321,215,168 $ 348,409,662 $ 345,953,287 $ 375,996,475 $ 420,167,840 $ 440,834,527 $ 449,076,665 $ 514,773,617 $ 543,248,118 $ 588,085,098 $ Restricted for: Capital projects 481,059 3,966,469 5,744,673 5,429,369 4,021,520 1,703,345 3,289,973 650,968 470,498 328,249 Debt service 5,541,010 2,685,250 8,326,867 3,575,360 2,544,937 2,177,640 3,747,431 3,726,492 23,363,273 24,817,693 General government 61,033 63,033 - - - - 2,059,116 243,718 5,420,783 5,964,412 Public safety - - - - - - - - 1,030,895 1,367,378 Highway - 1,364,893 3,159,107 7,805,980 22,322,267 8,194,081 8,196,850 17,904,466 3,714,707 3,461,023 Sanitation 5,500,000 5,500,000 5,500,000 - - - - - 5,962,323 6,747,120 Culture and recreation - - - - 90,592 318,687 335,087 339,900 321,809 332,177 Conservation of natural resources - - - - 56,181 58,613 37,992 41,659 42,201 54,766 Economic development 658,185 698,980 698,980 754,693 651,551 526,006 483,289 590,417 741,672 1,029,513 Unrestricted 51,565,881 49,037,875 58,977,104 46,366,707 (8,339,270) 9,639,978 24,125,485 10,376,493 31,764,128 19,911,968 Sub-total Governmental Activities 385,022,336 411,726,162 428,360,018 439,928,584 441,515,618 463,452,877 491,351,888 548,647,730 616,080,407 652,099,397 Change from prior year 2.20% 6.94% 4.04% 2.70% 0.36% 4.97% 6.02% 11.66% 12.29% 5.85% Business-type Activities: Net investment in capital assets 3,051,473 2,798,932 1,145,731 1,471,918 1,430,365 1,364,550 1,302,721 6,287,747 6,105,048 5,877,313 Unrestricted (deficit) (56,452) (258,965) 584,881 337,703 474,109 593,723 577,757 517,224 542,481 724,041 Sub-total Business-type Activities 2,995,021 2,539,967 1,730,612 1,809,621 1,904,474 1,958,273 1,880,478 6,804,971 6,647,529 6,601,354 Change from prior year -2.79% -15.19% -31.86% 4.57% 5.24% 2.82% -3.97% 261.87% -2.31% -0.69% Primary Government: Net investment in capital assets 324,266,641 351,208,594 347,099,018 377,468,393 421,598,205 442,199,077 450,379,386 521,061,364 549,353,166 593,962,411 Restricted for: Capital projects 481,059 3,966,469 5,744,673 5,429,369 4,021,520 1,703,345 3,289,973 650,968 470,498 328,249 Debt service 5,541,010 2,685,250 8,326,867 3,575,360 2,544,937 2,177,640 3,747,431 3,726,492 23,363,273 24,817,693 General government 61,033 63,033 - - - - 2,059,116 243,718 5,420,783 5,964,412 Public safety - - - - - - - - 1,030,895 1,367,378 Highway - 1,364,893 3,159,107 7,805,980 22,322,267 8,194,081 8,196,850 17,904,466 3,714,707 3,461,023 Sanitation 5,500,000 5,500,000 5,500,000 - - - - - 5,962,323 6,747,120 Culture and recreation - - - - 90,592 318,687 335,087 339,900 321,809 332,177 Conservation of natural resources - - - - 56,181 58,613 37,992 41,659 42,201 54,766 Economic development 658,185 698,980 698,980 754,693 651,551 526,006 483,289 590,417 741,672 1,029,513 Unrestricted 51,509,429 48,778,910 59,561,985 46,704,410 (7,865,161) 10,233,701 24,703,242 10,893,717 32,306,609 20,636,009 Total Primary Government Net Position 388,017,357 $ 414,266,129 $ 430,090,630 $ 441,738,205 $ 443,420,092 $ 465,411,150 $ 493,232,366 $ 555,452,701 $ 622,727,936 $ 658,700,751 $ Change from prior year 2.16% 6.76% 3.82% 2.71% 0.38% 4.96% 5.98% 12.61% 12.11% 5.78% Unaudited ANOKA COUNTY ANOKA, MINNESOTA NET POSITION LAST TEN FISCAL YEARS (Accrual basis of accounting) (20,000) 20,000 60,000 100,000 140,000 180,000 220,000 260,000 300,000 340,000 380,000 420,000 460,000 500,000 540,000 580,000 620,000 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 Dollars (In thousands) Year Primary Government Net Position, by Type Net investment in capital assets Restricted net position Unrestricted net position 91 ---PAGE BREAK--- Table 2 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 Expenses Governmental activities: General government 41,842,479 $ 24,214,191 $ 37,343,218 $ 46,749,537 $ 45,014,765 $ 46,970,658 $ 58,363,140 $ 40,478,462 $ 42,210,832 $ 37,772,485 $ Public safety 41,709,792 46,952,371 45,712,919 49,351,317 55,820,529 60,912,629 58,371,059 63,420,581 60,178,403 59,024,039 Highways and streets 17,445,904 16,583,108 14,395,003 20,760,759 11,172,070 19,405,835 24,999,144 20,614,471 32,159,071 34,442,191 Human services 78,164,182 78,060,744 79,950,181 81,078,629 88,089,933 90,240,467 73,678,924 81,337,121 75,890,627 78,798,325 Sanitation 7,038,000 7,252,014 7,520,078 8,846,822 9,673,736 10,879,141 7,370,368 6,732,606 4,733,264 4,521,419 Culture and recreation 13,025,757 12,640,143 14,183,863 14,570,255 15,571,431 15,766,736 14,868,884 17,968,943 14,333,469 15,783,949 Conservation of natural resources 764,353 652,622 648,240 708,287 691,811 663,627 606,625 603,411 588,047 573,117 Economic development 9,408,175 10,866,174 17,920,440 14,162,861 54,391,117 11,539,310 21,073,594 16,279,216 11,420,604 18,181,810 Interest expense and fiscal charges on long-term debt 4,475,635 4,257,358 5,037,599 4,945,113 7,403,523 8,593,411 9,367,791 9,785,291 9,242,711 9,152,835 Total governmental activities expenses 213,874,277 201,478,725 222,711,541 241,173,580 287,828,915 264,971,814 268,699,529 257,220,102 250,757,028 258,250,170 Business-type activities: Golf Course 1,159,800 1,031,693 - - - - - - - - Aquatic Center 685,260 741,218 727,952 800,504 773,752 824,410 776,771 1,197,292 1,259,538 1,206,089 Total business-type expenses 1,845,060 1,772,911 727,952 800,504 773,752 824,410 776,771 1,197,292 1,259,538 1,206,089 Total primary government expenses 215,719,337 203,251,636 223,439,493 241,974,084 288,602,667 265,796,224 269,476,300 258,417,394 252,016,566 259,456,259 Program Revenues Governmental activities: Charges for services: General government 11,619,141 10,128,101 10,590,990 10,418,433 9,784,110 9,011,450 7,777,575 7,462,792 8,738,662 9,067,757 Public safety 9,774,155 10,162,158 10,947,762 11,518,568 13,755,983 14,647,024 18,916,988 18,667,163 16,817,060 16,277,648 Highways and streets 248,252 251,327 389,136 397,402 339,161 382,974 381,410 280,132 198,926 235,456 Human services 1,723,102 1,926,350 2,042,647 2,090,553 2,077,820 2,007,851 3,125,660 6,266,832 4,631,539 4,746,215 Sanitation 5,372,801 5,524,743 6,072,600 6,311,284 6,975,274 8,066,733 6,826,185 6,707,706 6,357,578 4,211,448 Culture and recreation 1,138,292 1,138,143 1,892,307 2,046,073 2,291,175 2,324,714 2,329,883 2,349,598 2,372,130 2,460,210 Conservation of natural resources 29,237 14,329 21,238 20,790 29,426 32,435 21,682 40,654 55,991 47,127 Economic development 1,010,339 1,058,221 1,164,617 1,417,606 1,689,916 1,783,565 1,771,055 1,910,845 2,180,562 2,250,985 Operating grants and contributions 82,422,157 85,958,057 80,984,783 84,039,674 102,831,630 85,936,386 84,587,684 94,168,779 106,337,231 90,928,629 Capital grants and contributions 5,861,420 6,268,937 7,068,627 9,290,347 11,765,555 12,377,182 22,458,819 29,675,438 15,104,146 16,619,047 Total governmental activities program revenues 119,198,896 122,430,366 121,174,707 127,550,730 151,540,050 136,570,314 148,196,941 167,529,939 162,793,825 146,844,522 Business-type activities: Golf Course 701,426 718,413 - - - - - - - - Aquatic Center 1,032,516 805,444 1,030,500 1,099,359 1,098,605 1,108,209 928,976 1,575,490 1,580,828 1,607,431 Total business-type revenues 1,733,942 1,523,857 1,030,500 1,099,359 1,098,605 1,108,209 928,976 1,575,490 1,580,828 1,607,431 Total primary government program revenues 120,932,838 123,954,223 122,205,207 128,650,089 152,638,655 137,678,523 149,125,917 169,105,429 164,374,653 148,451,953 Net (Expense)/Revenue Governmental activities (94,675,381) (79,048,359) (101,536,834) (113,622,850) (136,288,865) (128,401,500) (120,502,588) (89,690,163) (87,963,203) (111,405,648) Business-type activities (111,118) (249,054) 302,548 298,855 324,853 283,799 152,205 378,198 321,290 401,342 Total primary government net expense (94,786,499) (79,297,413) (101,234,286) (113,323,995) (135,964,012) (128,117,701) (120,350,383) (89,311,965) (87,641,913) (111,004,306) General Revenues and Other Changes in Net Position Governmental activities: Taxes Property taxes collected for general purposes 86,452,475 91,278,568 98,267,778 103,308,691 110,371,907 117,213,750 120,487,286 121,128,580 122,438,605 117,023,562 Property taxes collected for debt service 8,292,972 8,694,290 9,868,792 11,337,718 12,961,520 15,966,634 18,308,010 18,826,079 20,369,043 19,765,144 Wheelage tax collected for highway and streets - - - - 1,302,278 1,344,670 1,357,818 1,355,057 1,385,440 1,388,677 Grants and contributions not restricted to specific programs 136,549 11,284 5,758 - - - - - - - Unrestricted investment earnings 1,794,834 1,717,999 2,586,659 5,871,018 7,877,156 7,678,758 2,308,125 3,550,062 5,108,171 3,242,169 Miscellaneous 3,577,229 3,844,044 6,329,800 4,454,143 5,133,038 7,904,947 5,710,360 6,873,710 5,615,889 5,557,569 Transfers (25,146) 206,000 1,111,903 219,846 230,000 230,000 230,000 (4,546,295) 478,732 447,517 Total governmental activities 100,228,913 105,752,185 118,170,690 125,191,416 137,875,899 150,338,759 148,401,599 147,187,193 155,395,880 147,424,638 Business-type activities: Transfers 25,146 (206,000) (1,111,903) (219,846) (230,000) (230,000) (230,000) 4,546,295 (478,732) (447,517) Total primary government 100,254,059 105,546,185 117,058,787 124,971,570 137,645,899 150,108,759 148,171,599 151,733,488 154,917,148 146,977,121 Change in Net Position Governmental activities 5,553,532 26,703,826 16,633,856 11,568,566 1,587,034 21,937,259 27,899,011 57,497,030 67,432,677 36,018,990 Business-type activities (85,972) (455,054) (809,355) 79,009 94,853 53,799 (77,795) 4,924,493 (157,442) (46,175) Total primary government 5,467,560 $ 26,248,772 $ 15,824,501 $ 11,647,575 $ 1,681,887 $ 21,991,058 $ 27,821,216 $ 62,421,523 $ 67,275,235 $ 35,972,815 $ Notes: The golf course was moved from Business-type to Governmental activities in 2005. Unaudited (Accrual basis of accounting) ANOKA COUNTY ANOKA, MINNESOTA CHANGES IN NET POSITION LAST TEN FISCAL YEARS 0 10,000 20,000 30,000 40,000 50,000 60,000 70,000 80,000 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 Dollars (In thousands) Year Total Primary Government Change in Net Position 92 ---PAGE BREAK--- Table 3 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 General Fund Prior to GASB #54 Reserved 5,991,896 $ 5,583,015 $ 5,569,773 $ 138,878 $ 658,195 $ 165,209 $ 2,186,610 $ 358,995 $ - $ - $ Unreserved 25,973,952 23,848,100 22,686,317 30,507,696 36,214,238 41,423,182 43,435,882 46,789,211 - - After GASB #54 Nonspendable - - - - - - - - 106,939 115,221 Restricted - - - - - - - - 12,044,111 13,689,641 Assigned - - - - - - - - 4,903,766 4,659,222 Unassigned - - - - - - - - 29,545,493 28,704,982 Total General Fund 31,965,848 29,431,115 28,256,090 30,646,574 36,872,433 41,588,391 45,622,492 47,148,206 46,600,309 47,169,066 General Fund change from prior year -3.64% -7.93% -3.99% 8.46% 20.32% 12.79% 9.70% 3.34% -1.16% 1.22% Other Governmental Funds Prior to GASB #54 Reserved 13,393,635 13,036,165 20,116,627 19,747,427 31,732,562 14,977,372 18,279,740 25,589,823 - - Unreserved 34,708,134 39,386,437 50,480,190 46,782,691 44,410,790 60,724,334 79,479,906 72,403,556 - - After GASB #54 Nonspendable - - - - - - - - 2,761,804 2,725,292 Restricted - - - - - - - - 32,214,783 44,718,410 Committed - - - - - - - - 5,407,567 6,722,520 Assigned - - - - - - - - 86,149,888 86,142,696 Unassigned - - - - - - - - - (11,827,509) Total Other Governmental Funds 48,101,769 52,422,602 70,596,817 66,530,118 76,143,352 75,701,706 97,759,646 97,993,379 126,534,042 128,481,409 Other Governmental Funds change from prior year -19.20% 8.98% 34.67% -5.76% 14.45% -0.58% 29.14% 0.24% 29.13% 1.54% Total Governmental Funds 80,067,617 $ 81,853,717 $ 98,852,907 $ 97,176,692 $ 113,015,785 $ 117,290,097 $ 143,382,138 $ 145,141,585 $ 173,134,351 $ 175,650,475 $ Total Governmental Funds change from prior year -13.63% 2.23% 20.77% -1.70% 16.30% 3.78% 22.25% 1.23% 19.29% 1.45% Notes: Unaudited The Governmental Accounting Standards Board (GASB) Statement #54, Fund Balance Reporting and Governmental Fund Type Definitions, was implemented in 2011. Statement #54 recategorized fund balances going from two to five classifications with different requirements and parameters. There are no parallel classifications between categories of reserved or unreserved and the GASB #54 categories. (Modified accrual basis of accounting) ANOKA COUNTY ANOKA, MINNESOTA FUND BALANCES, GOVERNMENTAL FUNDS LAST TEN FISCAL YEARS 93 ---PAGE BREAK--- Table 4 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 Revenues Taxes 76,052,661 $ 81,193,661 $ 87,558,824 $ 95,214,628 $ 104,119,233 $ 115,959,327 $ 120,075,679 $ 123,897,801 $ 127,336,139 $ 125,537,553 $ License and permits 786,542 837,543 944,922 1,009,689 1,044,555 1,152,990 1,148,764 1,126,284 1,164,390 1,285,216 Intergovernmental 98,653,559 102,589,208 101,989,748 104,720,502 127,888,690 109,097,320 122,186,767 138,721,917 136,159,618 117,467,375 Charges for service 28,018,548 29,409,841 32,467,202 33,522,530 36,261,786 37,692,549 36,784,476 36,600,357 34,011,575 32,475,447 Fines and forfeits 1,797,153 1,776,972 1,298,563 764,320 847,842 833,590 753,134 736,414 729,874 671,706 Investment income 1,780,011 1,673,767 2,566,232 5,848,989 7,831,741 7,504,346 1,841,812 3,077,652 4,652,354 2,921,088 Interest earned on securities lending net of related expenses 7,276 4,713 7,647 3,312 15,726 76,723 5,639 - - - Miscellaneous 10,247,004 11,438,323 11,388,430 10,093,846 10,846,721 11,961,067 11,514,726 14,137,678 13,925,691 14,179,081 Total revenues 217,342,754 228,924,028 238,221,568 251,177,816 288,856,294 284,277,912 294,310,997 318,298,103 317,979,641 294,537,466 Expenditures Current General government 33,041,771 34,163,488 33,060,792 32,399,985 33,359,144 35,124,467 55,669,453 39,825,483 40,000,510 40,437,536 Public safety 40,109,348 44,708,894 43,930,594 47,166,332 50,889,289 56,544,658 58,544,342 59,494,694 56,708,799 56,378,077 Highway and streets 20,502,211 27,283,767 24,793,694 30,309,288 48,151,258 32,700,169 37,545,483 46,571,830 58,934,529 63,461,363 Human services 77,769,854 77,832,158 79,371,255 81,090,205 85,003,608 85,504,869 76,262,810 80,738,615 75,773,592 74,302,122 Sanitation 7,035,246 7,238,034 8,392,028 8,852,364 9,633,816 10,816,997 7,391,853 6,720,175 4,717,810 4,509,247 Culture and recreation 12,641,202 12,321,241 14,294,819 15,129,065 14,061,962 14,374,009 15,297,073 22,350,737 15,759,477 15,314,212 Conservation of natural resources 758,799 651,815 647,525 707,607 677,288 646,070 620,866 599,602 586,757 570,286 Economic development 9,293,114 12,381,007 16,231,263 10,112,524 10,112,151 10,962,106 20,383,650 20,273,953 10,962,426 17,733,747 Capital outlay 11,644,610 14,955,597 9,721,909 27,227,881 76,009,547 37,767,206 27,979,598 17,071,301 9,842,751 20,791,424 Debt service Principal retirement 12,889,267 8,799,267 10,419,266 16,655,693 13,885,812 27,757,061 14,434,736 21,322,184 21,686,262 19,726,766 Interest 4,361,447 3,860,737 4,304,226 4,809,011 5,930,597 7,913,267 8,552,098 9,333,850 9,199,314 8,519,814 Bond issuance costs 91,486 294,061 822,268 409,654 1,042,033 607,404 810,141 203,316 324,185 431,736 Administrative charges 13,656 15,091 24,226 32,912 30,162 30,822 117,600 71,482 143,865 57,083 Intergovernmental 202,616 214,410 224,169 1,958,432 237,001 217,428 654,846 88,692 98,445 96,325 Total expenditures 230,354,627 244,719,567 246,238,034 276,860,953 349,023,668 320,966,533 324,264,549 324,665,914 304,738,722 322,329,738 Excess of revenues over (under) expenditures (13,011,873) (15,795,539) (8,016,466) (25,683,137) (60,167,374) (36,688,621) (29,953,552) (6,367,811) 13,240,919 (27,792,272) Other Financing Sources (Uses) Transfers in 3,714,317 4,751,458 9,016,139 7,913,223 5,725,830 15,870,328 10,225,279 15,836,065 29,322,255 18,324,236 Transfers out (3,728,463) (4,545,458) (12,487,033) (7,693,377) (5,495,830) (15,640,328) (9,995,279) (15,369,865) (28,843,523) (18,876,719) Bonds issued 2,435,000 15,960,000 22,695,000 22,790,000 75,515,000 35,346,127 51,730,000 7,460,000 8,975,000 13,880,000 Refunding bonds issued 1,130,000 1,320,000 13,495,000 - - 3,468,873 4,685,000 1,930,000 8,920,000 15,205,000 Payment of refunded bonds - - - - - - - (1,845,000) (1,430,000) - Payment to refunded bond escrow agent - - (7,465,116) - - - (3,000,000) - (3,180,000) - Premium on debt 37,849 94,742 16,601 117,839 155,905 1,248,013 2,147,809 77,133 446,535 1,744,159 Discount on debt - - (260,108) (20,489) - (27,984) - - (32,135) - Sale of capital assets - - - 745,412 - - - - - - Capital leases - - - - 90,300 - - - 97,148 - Insurance proceeds - - - - - 753,610 - 4,752 - - Total other financing sources (uses) 3,588,703 17,580,742 25,010,483 23,852,608 75,991,205 41,018,639 55,792,809 8,093,085 14,275,280 30,276,676 Prior Period Adjustments (3,094,886) - - - - - - (201,188) - - Increase (decrease) in inventories (120,847) 897 5,173 154,314 15,262 (55,706) 252,784 235,361 476,567 31,720 Net change in fund balances (12,638,903) $ 1,786,100 $ 16,999,190 $ (1,676,215) $ 15,839,093 $ 4,274,312 $ 26,092,041 $ 1,759,447 $ 27,992,766 $ 2,516,124 $ Debt service as a percentage of noncapital expenditures 8.14% 6.40% 6.60% 8.68% 7.08% 13.29% 8.21% 11.63% 12.09% 10.90% Notes: The County had a securities lending program from 2003 to 2009. Unaudited ANOKA COUNTY ANOKA, MINNESOTA CHANGES IN FUND BALANCES, GOVERNMENTAL FUNDS LAST TEN FISCAL YEARS (Modified accrual basis of accounting) 94 ---PAGE BREAK--- Table 5 Total Net Total Tax Capacity Residential Residential Commercial & Estimated Total Taxable Total Net Tax as a Percentage Fiscal Homestead Non Residential Commercial Public Personal Market Market Capacity of Taxable Total Direct Year Non-AG Homestead Seasonal & Industrial Agricultural Utility Railroad Property Value Value Value Market Value Tax Rate 2003 16,603,375 $ 1,723,837 $ 34,130 $ 2,861,445 $ 470,219 $ 27,411 $ 21,351 $ 203,626 $ 21,945,394 $ 20,534,751 $ 236,617 $ 1.15% 41.137 2004 18,658,875 2,095,491 37,756 3,062,105 497,539 29,035 21,025 229,708 24,631,534 23,568,243 269,459 1.14% 38.265 2005 20,869,259 2,313,503 40,539 3,384,495 518,384 31,220 20,253 223,987 27,401,640 26,641,621 302,862 1.14% 36.450 2006 22,620,038 2,933,814 44,658 3,783,068 565,022 32,289 23,938 222,048 30,224,875 29,567,533 336,349 1.14% 35.184 2007 23,355,973 3,313,508 48,915 4,253,498 633,287 33,147 24,034 222,519 31,884,881 31,316,413 358,963 1.15% 33.688 2008 23,136,264 3,433,029 46,359 4,660,143 623,340 34,144 30,322 231,988 32,195,589 31,710,911 367,066 1.16% 35.397 2009 21,403,847 3,259,121 42,983 4,589,486 578,626 35,078 33,559 255,786 30,198,486 29,871,966 348,048 1.17% 34.969 2010 19,309,920 2,929,711 36,293 4,181,347 500,806 37,965 32,265 272,391 27,300,698 27,025,523 315,214 1.17% 38.609 2011 18,611,726 2,818,962 33,447 3,937,270 471,829 38,190 31,557 271,044 26,214,025 24,028,138 282,472 1.18% 43.492 2012 17,036,780 2,721,244 29,198 3,548,678 415,432 43,438 35,376 280,091 24,110,238 21,845,050 256,725 1.18% 43.948 ANOKA COUNTY ANOKA, MINNESOTA ESTIMATED MARKET VALUE, TAXABLE MARKET VALUE AND NET TAX CAPACITY LAST TEN FISCAL YEARS Unaudited (In Thousands) Real Estate Property Source: Anoka County Property Tax Division 95 ---PAGE BREAK--- Table 6 Regional Regional Housing and Tax Railroad Railroad Redevelopment Cities/ School Special Year General Bonds Authority Authority Bonds Authority Total Townships Districts Districts 2004 32.080 3.678 1.202 0.000 1.305 38.265 44.956 24.421 1.202 2005 29.793 3.788 1.561 0.000 1.308 36.450 45.453 22.723 1.081 2006 28.644 3.899 1.326 0.000 1.315 35.184 43.403 23.201 1.190 2007 27.096 3.998 1.297 0.000 1.297 33.688 41.358 23.511 1.101 2008 26.930 4.523 2.435 0.000 1.509 35.397 41.267 22.945 1.230 2009 27.409 5.036 0.562 0.586 1.376 34.969 41.381 24.950 1.299 2010 30.170 5.404 0.767 0.514 1.754 38.609 44.710 27.922 1.393 2011 33.890 6.486 0.748 0.584 1.784 43.492 45.670 30.218 1.493 2012 35.334 6.281 0.008 0.642 1.683 43.948 49.957 32.498 1.717 2013 38.098 6.663 0.085 0.692 1.677 47.215 53.109 36.321 1.676 Tax Year 2013 Number of taxing districts 21 9 12 Minimum levy rate 27.040 22.018 0.587 Maximum levy rate 96.620 50.112 2.893 Unaudited Watershed Districts, Mosquito Control, Regional Transit and Metropolitan Council Source: Anoka County Property Tax Division ANOKA COUNTY ANOKA, MINNESOTA PROPERTY TAX RATES - DIRECT AND OVERLAPPING GOVERNMENTS (PER $1,000 OF TAX CAPACITY) LAST TEN ASSESSMENT YEARS Note: Special Districts include City Housing and Redevelopment Authority, Hospitals, Anoka County Average rates within each classification 0 10 20 30 40 50 60 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 Per $1,000 Tax Capacity Years Property Tax Rates Direct County Cities & Townships School Districts Special Districts 96 ---PAGE BREAK--- Table 7 Estimated 2012 Percentage Market Tax Capacity of Total Tax Taxpayer Type of Business Rank Value Value Capacity Value Medtronic, Inc. Manufacturing 1 97,448,300 $ 1,946,716 $ 0.76% Connexus Energy Utility 2 91,616,600 1,825,058 0.71% Minnegasco, Inc. Utility 3 79,886,500 1,595,458 0.62% Northern States Power Co. Utility 4 66,677,100 1,331,767 0.52% Glimcher Realty Trust Mall 5 47,275,500 944,760 0.37% Target Corporation Retail 6 46,583,800 927,926 0.36% DDR MDT Riverdale Vill Outer Ring, LLC Retail 7 42,670,900 852,668 0.33% DDR MDT Riverdale Vill Inner Ring, LLC Retail 8 34,749,300 692,737 0.27% Burlington Northern Industrial 9 33,953,200 676,985 0.26% Great River Energy Utility 10 32,004,100 637,946 0.25% TOTALS 572,865,300 $ 11,432,021 $ 4.45% Total Tax Capacity Value 256,724,563 $ Estimated 2003 Percentage Market Tax Capacity of Total Tax Taxpayer Type of Business Rank Value Value Capacity Value Medtronic, Inc. Manufacturing 1 122,161,700 $ 2,440,234 $ 1.03% Connexus Energy/Anoka Electric Cooperative Electricity/Utility 2 80,814,400 1,607,079 0.68% Glimcher Realty Trust Mall 3 55,936,200 1,117,974 0.47% Target Corporation Retail 4 55,272,800 1,101,706 0.47% Northern States Power Co. Electricity/Utility 5 55,351,500 1,093,948 0.46% CRRV Perimeter One, LLC Retail 6 52,252,000 1,043,489 0.44% Minnegasco, Inc. Gas/Utility 7 43,770,600 871,080 0.37% Shamrock Investments III, LLC Commercial/Industrial 8 25,124,900 625,396 0.26% Riverdale Crossing Retail 9 29,651,400 610,778 0.26% Rainbow Village/Robert Muir Co. Retail 10 30,478,800 607,326 0.26% TOTALS 550,814,300 $ 11,119,010 $ 4.70% Total Tax Capacity Value 236,617,283 $ Source: Anoka County Property Tax Division Unaudited 2003 TAX CAPACITY VALUE - PAYABLE 2004 ANOKA COUNTY ANOKA, MINNESOTA TEN LARGEST TAXPAYERS 2012 TAX CAPACITY VALUE - PAYABLE 2013 CURRENT YEAR AND NINE YEARS PRIOR 97 ---PAGE BREAK--- Table 8 Tax Levied Collections in Fiscal for the Fiscal Percentage Subsequent Percentage Percentage Year Year Amount of Levy Years Amount of Levy Amount of Levy 2003 96,262,641 $ 91,973,664 $ 95.54% 1,009,740 $ 92,983,404 $ 96.59% 3,245 $ 0.00% 2004 99,362,917 97,908,557 98.54% 655,147 98,563,704 99.20% 4,667 0.00% 2005 107,952,677 106,417,089 98.58% 1,085,475 107,502,564 99.58% 13,484 0.01% 2006 114,271,812 112,498,149 98.45% 1,494,536 113,992,685 99.76% 21,720 0.02% 2007 123,135,436 120,235,177 97.64% 2,029,473 122,264,650 99.29% 49,098 0.04% 2008 136,112,356 129,909,128 95.44% 2,326,793 132,235,921 97.15% 92,371 0.07% 2009 139,702,338 135,349,593 96.88% 2,169,294 137,518,887 98.44% 201,674 0.14% 2010 145,151,888 136,193,948 93.83% 1,689,578 137,883,526 94.99% 469,405 0.32% 2011 147,665,592 140,146,703 94.91% 1,145,096 141,291,799 95.68% 817,289 0.55% 2012 137,162,350 135,556,093 98.83% - 135,556,093 98.83% 1,798,791 1.31% Notes: Tax Aids and Credits from the State of Minnesota were reduced significantly in an attempt to balance the State budget. Source: Unaudited Year of the Levy Total Collections to Date (net of abatements) Includes state paid credits. Anoka County Property Tax Division Anoka County Finance and Central Services Division ANOKA COUNTY ANOKA, MINNESOTA PROPERTY TAX LEVIES AND COLLECTIONS LAST TEN FISCAL YEARS Collection within the Fiscal Outstanding Delinquent 91.00% 92.00% 93.00% 94.00% 95.00% 96.00% 97.00% 98.00% 99.00% 100.00% 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 Percentage of Levy Fiscal Year Percentage of Levy Collected in Fiscal Year 98 ---PAGE BREAK--- Lease General General Obligation Economic Total Ratio of Debt Debt Fiscal Revenue Obligation Bonds Supported Capital Development Primary Personal To Personal Per Year Obligations Bonds and Notes by Revenue Leases Loan Government Income Income Population Capita 2003 10,335,000 $ 64,235,000 $ 16,805,000 $ 929,600 $ 110,000 $ 92,414,600 $ 10,265,000,000 $ 0.90% 313,197 295 $ 2004 9,255,000 63,815,000 26,830,000 885,333 110,000 100,895,333 10,772,000,000 0.94% 316,[PHONE REDACTED] 8,140,000 82,055,000 28,340,000 841,067 110,000 119,486,067 11,109,000,000 1.08% 326,[PHONE REDACTED] 13,590,000 84,245,000 26,865,000 810,374 96,162 125,606,536 11,866,000,000 1.06% 328,[PHONE REDACTED] 15,105,000 146,590,000 24,685,000 849,862 - 187,229,862 12,478,000,000 1.50% 331,[PHONE REDACTED] 13,891,359 159,655,000 23,935,000 806,442 - 198,287,801 12,747,000,000 1.56% 332,[PHONE REDACTED] 12,771,649 200,305,000 23,435,000 756,416 - 237,268,065 12,482,593,000 1.90% 335,[PHONE REDACTED] 11,567,432 188,695,000 22,525,000 703,449 - 223,490,881 12,670,461,000 1.76% 330,[PHONE REDACTED] 10,873,505 173,460,000 30,475,000 75,882 - 214,884,387 13,275,546,000 1.62% 334,[PHONE REDACTED] 10,149,654 173,750,000 40,290,000 52,967 - 224,242,621 * * 337,394 665 Notes: Source: Bureau of Economic Analysis Source: Metropolitan Council (2012 population is an estimate based on past years' growth) Source: Minnesota State Auditor (2010 is the most recent information available) Graph shows the most recent five years available * not available or estimated Unaudited Governmental Activities ANOKA COUNTY ANOKA, MINNESOTA RATIOS OF OUTSTANDING DEBT TO PERSONAL INCOME AND DEBT PER CAPITA LAST TEN FISCAL YEARS Table 9 $200 $400 $600 $800 $1,000 $1,200 2006 2007 2008 2009 2010 Debt per Capita Fiscal Year Debt Per Capita Metro County Comparison Anoka Carver Dakota Hennepin Ramsey Scott Washington 99 ---PAGE BREAK--- Table 10 Net Bonded Lease General General Obligation Total Amounts Net Estimated Debt Net Bonded Fiscal Revenue Obligation Bonds Supported Bonded Available in Bonded Market of Estimated Debt Per Year Obligations Bonds and Notes by Revenue Debt Funds Debt Value Market Value Population Capita 2003 10,335,000 $ 64,235,000 $ 16,805,000 $ 91,375,000 $ 6,582,726 $ 84,792,274 $ 21,945,392,500 $ 0.39% 313,197 271 $ 2004 9,255,000 63,815,000 26,830,000 99,900,000 7,467,390 92,432,610 24,631,534,900 0.38% 316,[PHONE REDACTED] 8,140,000 82,055,000 28,340,000 118,535,000 14,351,118 104,183,882 27,401,639,100 0.38% 326,[PHONE REDACTED] 13,590,000 84,245,000 26,865,000 124,700,000 11,089,737 113,610,263 30,224,874,700 0.38% 328,[PHONE REDACTED] 15,105,000 146,590,000 24,685,000 186,380,000 14,551,225 171,828,775 31,884,880,900 0.54% 331,[PHONE REDACTED] 13,891,359 159,655,000 23,935,000 197,481,359 13,501,452 183,979,907 32,195,588,700 0.57% 332,[PHONE REDACTED] 12,771,649 200,305,000 23,435,000 236,511,649 21,353,266 215,158,383 30,198,485,700 0.71% 335,[PHONE REDACTED] 11,567,432 188,695,000 22,525,000 222,787,432 17,874,475 204,912,957 27,300,698,200 0.75% 330,[PHONE REDACTED] 10,873,505 173,460,000 30,475,000 214,808,505 16,605,532 198,202,973 26,214,024,800 0.76% 334,[PHONE REDACTED] 10,149,654 173,750,000 40,290,000 224,189,654 18,118,713 206,070,940 24,110,238,400 0.85% 337,394 611 Notes: Unaudited Source: Anoka County Property Tax Division Source: Metropolitan Council (2012 population is an estimate based on previous years' growth) Governmental Activities LAST TEN FISCAL YEARS ANOKA COUNTY ANOKA, MINNESOTA RATIOS OF NET BONDED DEBT TO ESTIMATED MARKET VALUE AND NET BONDED DEBT PER CAPITA $100 $200 $300 $400 $500 $600 $700 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 Net Bonded Debt per Capita Fiscal Year Net Bonded Debt Per Capita 100 ---PAGE BREAK--- Table 11 Net G. O. County's Debt Share of Governmental Unit Outstanding Net Debt Direct: Anoka County 165,780,941 $ 100.0% 165,780,941 $ Overlapping: Metropolitan Council 21,200,000 10.4% 2,204,800 Metropolitan Transit 380,605,000 13.0% 49,478,650 Underlying: City of Andover 24,750,000 100.0% 24,750,000 City of Anoka 11,930,000 100.0% 11,930,000 City of Bethel 415,000 100.0% 415,000 City of Blaine 29,765,000 99.1% 29,497,115 City of Centerville 8,826,500 100.0% 8,826,500 City of Circle Pines 12,085,000 100.0% 12,085,000 City of Columbia Heights 18,015,000 100.0% 18,015,000 City of Columbus 13,086,029 100.0% 13,086,029 City of Coon Rapids 19,995,000 100.0% 19,995,000 City of East Bethel 1,735,000 100.0% 1,735,000 City of Fridley 7,660,000 100.0% 7,660,000 City of Ham Lake 2,185,000 100.0% 2,185,000 City of Lexington 862,125 100.0% 862,125 City of Lino Lakes 19,946,000 100.0% 19,946,000 City of Nowthen 1,027,804 100.0% 1,027,804 City of Oak Grove 1,795,000 100.0% 1,795,000 City of Ramsey 33,920,000 100.0% 33,920,000 City of St. Francis 885,000 99.9% 884,115 City of Spring Lake Park 1,135,000 97.5% 1,106,625 School District #11 107,490,573 79.4% 85,347,515 School District #12 58,500,000 100.0% 58,500,000 School District #13 25,049,923 100.0% 25,049,923 School District #14 40,635,000 100.0% 40,635,000 School District #15 37,520,000 93.2% 34,968,640 School District #16 115,865,000 100.0% 115,865,000 School District #624 92,600,000 3.5% 3,241,000 School District #728 176,720,000 6.7% 11,840,240 School District #831 29,930,000 32.3% 9,667,390 Total Underlying 894,328,954 594,836,021 Grand Total 1,461,914,895 $ 812,300,412 $ Notes: Unaudited Source: Anoka County Property Tax Division ANOKA COUNTY ANOKA, MINNESOTA COMPUTATION OF DIRECT, OVERLAPPING AND UNDERLYING LONG-TERM DEBT Percent Applicable to County DECEMBER 31, 2012 The Net G.O. Debt Outstanding includes debt which is secured by the authority to levy taxes on real estate. The net amount is determined by deducting the amount available for debt retirement as of December 31, 2012, from total long-term debt. Determined by the portion of the long-term debt which is secured by taxable real estate located within Anoka County. 101 ---PAGE BREAK--- 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 Estimated market value (EMV) 21,945,392,500 $ 24,631,534,900 $ 27,401,639,100 $ 30,224,874,700 $ 31,884,880,900 $ 32,195,588,700 $ 30,198,485,700 $ 27,300,698,200 $ 26,214,025,000 $ 24,110,238,400 $ Add: Estimated market value of certain property exempt from taxation at its 1966 valuation, Extra session laws 1967, Chapter 32, Article 15 39,626,178 39,626,178 39,626,178 39,626,178 39,626,178 39,626,178 39,626,178 39,626,178 39,626,178 39,626,178 Net estimated market value (EMV) 21,985,018,678 24,671,161,078 27,441,265,278 30,264,500,878 31,924,507,078 32,235,214,878 30,238,111,878 27,340,324,378 26,253,651,178 24,149,864,578 Debt limit as a percentage of EMV Amount of debt applicable to debt limit 439,700,374 493,423,222 548,825,306 605,290,018 638,490,142 967,056,446 907,143,356 820,209,731 787,609,535 724,495,937 Total bonded debt 74,570,000 73,070,000 90,195,000 97,835,000 161,695,000 173,546,359 213,076,649 200,262,432 184,333,505 183,899,655 Less: Amount available in funds (6,582,726) (7,467,390) (14,351,118) (11,089,737) (14,551,225) (13,501,452) (21,353,266) (17,874,475) (16,605,532) (18,118,713) Total debt applicable to debt limit 67,987,274 65,602,610 75,843,882 86,745,263 147,143,775 160,044,907 191,723,383 182,387,957 167,727,973 165,780,942 Legal Debt Margin 371,713,100 $ 427,820,612 $ 472,981,424 $ 518,544,755 $ 491,346,367 $ 807,011,539 $ 715,419,973 $ 637,821,774 $ 619,881,562 $ 558,714,996 $ Legal debt margin as a percentage of debt limit: 84.54% 86.70% 86.18% 85.67% 76.95% 83.45% 78.87% 77.76% 78.70% 77.12% Notes: Unaudited ANOKA COUNTY ANOKA, MINNESOTA Table 12 LEGAL DEBT MARGIN LAST TEN FISCAL YEARS Source: Anoka County Property Tax Division Minnesota Stat. Sec. 475.53, subd. 1, Limit on Net Debt: Except as otherwise provided in sections 475.51 to 475.74, no municipality except a school district or a city of the first class, shall incur or be subject to a net debt in excess of three percent of the estimated market value (EMV), beginning in 2008. Prior to 2008, the debt limit was two percent of the EMV. Does not include bonds supported by revenue. The debt limit for 2008 was restated to reflect this change. 200,000 400,000 600,000 800,000 1,000,000 1,200,000 Dollars (In thousands) Fiscal Year COMPARISON OF LEGAL DEBT MARGIN TO DEBT LIMIT Debt Limit Legal Debt Margin 102 ---PAGE BREAK--- Table 13 Funding Source: Senior Housing Rental Income, Allocated Property Tax Revenue from City of Ham Lake and Net Fiscal Available Operating Available Year Revenue Expenditures Revenues Principal Interest Total Coverage * 2003 424,884 $ 288,367 $ 136,517 $ 10,000 $ 178,616 $ 188,616 $ 0.72 2004 434,617 224,761 209,856 10,000 178,100 188,100 1.12 2005 450,231 248,419 201,812 10,000 177,550 187,550 1.08 2006 454,652 277,941 176,711 10,000 177,000 187,000 0.94 2007 448,579 175,711 272,868 30,000 176,175 206,175 1.32 2008 549,184 303,911 245,273 85,000 172,928 257,928 0.95 2009 451,681 194,260 257,421 40,000 87,007 127,007 2.03 2010 470,824 233,727 237,097 115,000 112,315 227,315 1.04 2011 479,434 203,579 275,855 120,000 107,615 227,615 1.21 2012 472,279 252,714 219,565 125,000 102,715 227,715 0.96 Funding Source: Senior Housing Rental Income, Allocated Property Tax Revenue from City of Centerville and Net Fiscal Available Operating Available Year Revenue Expenditures Revenues Principal Interest Total Coverage * 2003 142,511 $ 51,004 $ 91,507 $ 20,000 $ 68,715 $ 88,715 $ 1.03 2004 150,986 71,045 79,941 20,000 67,795 87,795 0.91 2005 306,355 130,353 176,002 25,000 251,605 276,605 0.64 2006 473,726 207,366 266,360 25,000 210,531 235,531 1.13 2007 487,804 186,224 301,580 70,000 195,590 265,590 1.14 2008 777,617 564,345 213,272 70,000 194,120 264,120 0.81 2009 468,961 241,181 227,780 80,000 192,275 272,275 0.84 2010 462,576 278,429 184,147 85,000 189,960 274,960 0.67 2011 484,910 238,662 246,248 90,000 187,245 277,245 0.89 2012 474,969 245,531 229,438 95,000 184,024 279,024 0.82 Funding Source: Senior Housing Rental Income, Allocated Property Tax Revenue from City of Ramsey and Net Fiscal Available Operating Available Year Revenue Expenditures Revenues Principal Interest Total Coverage * 2003 490,448 $ 288,367 $ 202,081 $ - $ 148,332 $ 148,332 $ 1.36 2004 504,032 314,728 189,304 - 148,332 148,332 1.28 2005 512,256 335,454 176,802 - 148,332 148,332 1.19 2006 640,054 451,554 188,500 - 148,332 148,332 1.27 2007 490,949 348,002 142,947 - 148,332 148,332 0.96 2008 501,911 412,467 89,444 - 148,332 148,332 0.60 2009 494,617 810,397 (315,780) - 185,610 185,610 (1.70) 2010 515,900 275,423 240,477 105,000 105,458 210,458 1.14 2011 519,944 276,011 243,933 135,000 103,058 238,058 1.02 2012 524,622 274,228 250,394 135,000 100,358 235,358 1.06 Funding Source: Senior Housing Rental Income, Allocated Property Tax Revenue from City of Oak Grove and Net Fiscal Available Operating Available Year Revenue Expenditures Revenues Principal Interest Total Coverage * 2005 - $ - $ - $ - $ 347,249 $ 347,249 $ - 2006 98,042 109,211 (11,169) - 272,353 272,353 (0.04) 2007 410,872 238,704 172,168 90,000 271,498 361,498 0.48 2008 354,497 274,336 80,161 90,000 269,608 359,608 0.22 2009 357,493 283,996 73,497 100,000 267,273 367,273 0.20 2010 425,607 280,279 145,328 110,000 264,323 374,323 0.39 2011 455,686 307,906 147,780 115,000 260,833 375,833 0.39 2012 484,137 330,939 153,198 125,000 256,649 381,649 0.40 * Coverage is the ratio of Net Available Revenues to Debt Service Total Unaudited Interest Income from Escrow and Miscellaneous Accounts. Interest Income from Escrow and Miscellaneous Accounts. City of Oak Grove Gross Revenue Bonds City of Ramsey Gross Revenue Bonds Interest Income from Escrow and Miscellaneous Accounts. Interest Income from Escrow and Miscellaneous Accounts. City of Ham Lake Gross Revenue Bonds City of Centerville Gross Revenue Bonds ANOKA COUNTY ANOKA, MINNESOTA PLEDGED REVENUE COVERAGE LAST TEN FISCAL YEARS 103 ---PAGE BREAK--- Table 14 Population Anoka County Anoka County Education Level Mpls.-St. Paul Rank in Size in years of School Fiscal State of Metropolitan Percent of Minnesota Personal Percent Per Capita Percent Median Formal Enrollment Year Minnesota Area Population of Change Counties Income of Change Income of Change Age Schooling (K thru 12) 2003 5,088,006 2,740,985 313,197 1.6% 4th 10,265,000,000 $ 3.8% 32,775 $ 2.1% 34.5 13.2 64,562 2004 5,145,106 2,771,030 316,830 1.2% 4th 10,772,000,000 4.9% 33,999 3.7% 35.0 13.3 64,861 2005 5,205,091 2,810,179 326,393 3.0% 4th 11,109,800,000 3.1% 34,038 0.1% 35.4 13.4 65,607 2006 5,231,106 2,821,779 328,614 0.7% 4th 11,866,000,000 6.8% 36,109 6.1% 35.3 13.5 65,900 2007 5,263,493 2,849,003 331,246 0.8% 4th 12,478,000,000 5.2% 37,670 4.3% 35.9 13.2 63,113 2008 5,287,976 2,870,250 332,751 0.5% 4th 12,747,000,000 2.2% 38,308 1.7% 36.3 13.4 62,901 2009 5,300,942 2,881,812 335,308 0.8% 4th 12,482,593,000 -2.1% 37,646 -1.7% 36.8 13.5 63,985 2010 5,303,925 2,849,567 330,844 -1.3% 4th 12,670,461,000 1.5% 38,297 1.7% 36.8 13.5 62,372 2011 5,344,861 2,873,444 334,045 1.0% 4th 13,275,546,000 * * * 37.3 13.6 62,256 2012 * * 337,394 1.0% * * * * * * 13.5 62,064 Anoka County Employment Unemployment State of Anoka County Minnesota United States Fiscal Labor Percent Percent Percent Unemployment Percent Unemployment Percent Unemployment Percent Year Force of Change Employment of Change Unemployment of Change Rate of Change Rate of Change Rate of Change 2003 189,407 -0.2% 179,965 -0.9% 9,442 14.6% 5.0% 0.7% 5.0% 0.6% 6.0% 0.2% 2004 189,740 0.2% 181,069 0.6% 8,671 -8.2% 4.6% -0.4% 4.7% -0.3% 5.6% -0.4% 2005 193,188 1.8% 185,844 2.6% 7,344 -15.3% 3.8% -0.8% 4.0% -0.7% 5.1% -0.5% 2006 193,461 0.1% 185,994 0.1% 7,467 1.7% 3.9% 0.1% 4.0% 0.0% 4.6% -0.5% 2007 193,818 0.2% 185,111 -0.5% 8,707 16.6% 4.5% 0.6% 4.6% 0.6% 4.6% 0.0% 2008 191,087 -1.4% 180,630 -2.4% 10,457 20.1% 5.5% 1.0% 5.5% 0.9% 5.8% 1.2% 2009 192,530 0.8% 176,075 -2.5% 16,455 57.4% 8.5% 3.0% 8.0% 2.5% 9.3% 3.5% 2010 189,141 -1.8% 175,669 -0.2% 13,472 -18.1% 7.1% -1.4% 7.0% -1.0% 9.1% -0.2% 2011 190,741 0.8% 179,527 2.2% 11,214 -16.8% 5.9% -1.2% 5.8% -1.2% 8.3% -0.8% 2012 191,231 0.3% 180,551 0.6% 10,680 -4.8% 5.6% -0.3% 5.4% -0.4% 7.6% -0.7% Notes: Annual averages Calculation of Personal Income and Population Unaudited Source: U. S. Census Bureau (2012 population is an estimate based on past years' growth) Persons 25 years and over. Source: U. S. Census Bureau Public schools only Source: Minnesota Department of Education Source: U. S. Bureau of Economic Analysis * not available or estimated The most recent data available is from the 2010 Census Source: U. S. Census Bureau Source: State Demographic Center at Minnesota Planning Source: Minnesota Workforce Center LAST TEN FISCAL YEARS DEMOGRAPHIC AND ECONOMIC STATISTICS ANOKA, MINNESOTA ANOKA COUNTY Source: Metropolitan Council 0.0% 1.0% 2.0% 3.0% 4.0% 5.0% 6.0% 7.0% 8.0% 9.0% 10.0% 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 Unemployment Rate Years Unemployment Rates Anoka County State of Minnesota United States 104 ---PAGE BREAK--- Table 15 Percentage of Total Taxpayer Type of Business Rank Employment Medtronic Corporation Electro-Medical Services 1 10,640 9.69% Anoka-Hennepin Independent School District #11 Public Education 2 6,160 5.61% Mercy Hospital and Unity Medical Center Hospitals 3 3,200 2.91% Target Corporation (six stores & distribution center) Retail 4 2,000 1.82% Cummins Power Generation Generator and Diesel Manufacturer 5 2,000 1.82% Anoka County County Government 6 1,724 1.57% Northtown Mall Shopping Mall 7 1,625 1.48% ATK Federal Premium Ammunition Ammunition Manufacturing 8 1,575 1.43% Pentair Technical Products Electrical Products 9 1,225 1.12% Walmart Corporation Retail 10 850 0.77% Total Anoka County Employment 109,837 Source: Telephone survey of individual employers by Bond Advisors, November 2012 and Anoka County Finance and Central Services Division Percentage of Total Taxpayer Type of Business Rank Employment Anoka-Hennepin Independent School District #11 Public Education 1 4,880 4.42% Medtronic Corporation Electro-Medical Services 2 4,700 4.26% Mercy Hospital and Unity Medical Center Hospitals 3 4,030 3.65% Hoffman Engineering Company Electrical Products 4 1,750 1.58% Anoka County County Government 5 1,687 1.53% Onan Corporation Generator and Diesel Manufacturer 6 1,600 1.45% United Defense Pumps/Naval Ordinance 7 1,400 1.27% Target Corporation Retail 8 1,090 0.99% Cub Foods Grocery Stores 9 935 0.85% Federal Cartridge Corporation Ammunition Manufacturer 10 800 0.72% Total Anoka County Employment 110,423 Source: Minnesota Manufacturers Register Notes: Corporate-wide total is 45,000; 10,640 in Anoka County sites. Includes full-time and part-time employees; excludes seasonal and temporary employees. Former name was Onan Corporation. Former name was Federal Cartridge Corporation. Minnesota Department of Employment and Economic Development - NAICS, based on the average of the first two quarters of 2012. Minnesota Department of Employment and Economic Development - NAICS. Unaudited Employment Approximate Employment TEN LARGEST EMPLOYERS CURRENT YEAR AND NINE YEARS PRIOR ANOKA COUNTY ANOKA, MINNESOTA 2003 Employers 2012 Employers Approximate 105 ---PAGE BREAK--- Average Number of Industry Wages Employees Natural Resources & Mining Natu 9,025,293 $ 348 0.3% Construction Con 296,764,268 5,810 5.4% Manufacturing Man 1,416,460,088 21,040 19.6% Trade, Transportation & Utilities Trad 874,207,998 23,299 21.7% Financial Activities Fina 162,307,809 3,318 3.1% Professional & Business Services Prof 386,829,772 8,952 8.3% Education & Health Services Edu 1,088,516,093 23,441 21.8% Leisure & Hospitality Leis 169,300,439 11,360 10.6% Other Services Excluding Public Administration Oth 107,919,416 4,298 4.0% Public Administration Pub 225,749,155 4,619 4.3% Unclassified 37,312,461 919 0.9% Total, all industries 4,774,392,792 $ 107,404 100.0% Average Number of Industry Wages Employees Natural Resources & Mining Natu 8,506,588 $ 388 0.3% Construction Con 333,636,952 9,431 8.7% Manufacturing Man 938,977,440 23,128 21.3% Trade, Transportation & Utilities Trad 384,635,311 24,460 22.5% Information Info 18,086,116 1,227 1.1% Financial Activities Fina 97,265,026 3,921 3.6% Education & Health Services Edu 542,476,184 19,793 18.2% Other Services Excluding Public Administration Oth 58,173,026 3,790 3.5% Public Administration Pub 123,019,832 4,399 4.1% Unclassified 504,678,271 18,150 16.7% Total, all industries 3,009,454,746 $ 108,687 100.0% Source: Minnesota Workforce Center (NAICS) Unaudited Note: 2011 is the most recent period that data is available for this table. of All Employment 2002 Percent of All Employment Percent 2011 AND 2002 ANOKA COUNTY ANOKA, MINNESOTA Table 16 COMPARISON OF EMPLOYMENT BY INDUSTRY 2011 106 ---PAGE BREAK--- Table 17 Budget Program Area/Programs 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 County General Services 92.00 87.10 90.45 89.95 94.70 95.95 95.45 97.45 96.35 97.95 Management Appropriations 7.00 7.00 7.00 7.00 7.00 7.00 7.00 7.00 7.00 7.00 County Administration 12.50 11.50 12.50 12.50 12.50 12.50 11.50 11.50 10.50 12.50 Misc. Appropriations & Allocations - - - - - - - - - 1.00 Human Resources 13.25 12.25 12.85 13.35 13.85 13.85 13.35 13.35 12.85 12.45 Internal Auditor 1.00 1.00 1.00 1.00 1.00 1.00 1.00 1.00 1.00 1.00 Cultural Coordination 1.00 1.00 1.00 1.00 1.00 1.00 1.00 1.00 1.00 - Univ. of Minnesota Ext. Service 3.75 2.85 2.60 2.60 2.60 2.60 2.60 2.60 2.00 2.00 Central Communications 41.00 40.00 41.00 41.00 41.00 42.00 42.00 42.00 42.00 41.00 Emergency Management - - - - 1.00 1.00 1.00 2.00 2.00 2.00 Veterans Services 3.00 3.00 3.00 3.00 4.00 4.00 4.00 4.00 6.00 6.00 Intergovernmental Relations 1.00 1.00 1.00 1.00 1.00 1.00 1.00 1.00 1.00 2.00 Community Development 4.00 4.00 5.00 4.00 5.00 5.00 6.00 7.00 6.00 6.00 Public Information 4.50 3.50 3.50 3.50 4.75 5.00 5.00 5.00 5.00 5.00 Finance & Central Services 136.20 127.00 128.00 130.00 133.50 135.50 142.50 143.50 147.00 144.74 Information Technology 55.00 52.50 47.00 48.00 50.00 52.00 53.00 54.00 52.00 61.00 Leasehold Buildings 4.00 4.00 4.00 4.00 4.00 4.00 4.00 4.00 3.00 3.00 Facility Mgmt. and Construction 42.50 38.50 38.50 39.50 41.00 37.00 41.00 41.00 42.00 44.00 Financial Mgmt. & Central Services 22.70 20.00 26.50 26.50 26.50 30.50 32.50 32.50 38.00 26.74 Accounting & Budget 12.00 12.00 12.00 12.00 12.00 12.00 12.00 12.00 12.00 10.00 Property Records & Taxation 85.00 80.50 85.45 86.45 86.45 87.45 83.95 83.95 82.95 85.95 Statutory Judicial & Public Safety 384.05 384.05 314.55 318.25 337.25 348.00 347.35 350.35 350.10 342.80 County Attorney 88.95 88.95 89.45 91.15 92.15 94.90 94.25 94.25 96.00 92.70 Court Facilities 79.50 81.00 - - - - - - - - Sheriff 215.60 214.10 225.10 227.10 245.10 253.10 253.10 256.10 254.10 250.10 Public Services 221.10 214.70 214.95 215.15 213.90 220.10 214.60 214.60 213.60 207.30 Public Services Administration 9.00 7.00 7.00 6.00 5.00 7.00 6.00 6.00 6.00 6.00 Highway 104.00 104.00 105.00 106.00 106.00 108.00 108.00 108.00 107.00 107.00 Parks & Recreation 40.05 35.65 36.65 36.65 36.15 36.15 33.85 33.85 33.85 34.85 Surveyor 11.00 10.00 11.00 11.00 11.00 11.00 11.00 11.00 11.00 11.00 Geographic Information System 3.00 3.00 3.00 3.00 3.00 3.00 2.00 2.00 2.00 2.00 Transit & Volunteer Transportation 4.00 4.00 4.00 4.00 4.00 4.00 4.00 4.00 4.00 4.00 Chomonix Golf Course 5.00 5.00 4.00 4.00 4.00 4.00 4.00 4.00 4.00 4.00 Bunker Beach Aquatic Center 1.00 1.00 1.00 1.00 1.00 1.00 1.00 1.00 1.00 1.00 License Bureau 38.05 39.05 37.30 37.50 37.75 39.20 38.00 38.00 38.00 30.70 Integrated Waste Management 6.00 6.00 6.00 6.00 6.00 6.75 6.75 6.75 6.75 6.75 Human Services 881.40 785.10 798.58 782.58 820.75 835.25 820.05 830.55 810.50 812.30 Income Maintenance 204.50 201.00 205.00 203.50 202.50 206.50 207.50 211.00 210.00 210.00 Social Service 203.80 152.25 158.25 145.75 162.75 160.75 166.00 163.00 157.75 157.55 Mental Health Services 41.50 37.50 38.23 38.23 43.50 44.50 46.50 49.50 48.50 49.50 Comm. Health & Environmental Ser. 104.35 98.10 99.60 100.10 103.60 107.10 109.10 112.10 108.80 108.80 Other Misc Human Services Prog. - - - - - - - 4.00 4.00 4.00 Community Corrections 243.50 219.00 221.75 219.25 221.75 221.25 202.00 204.00 198.00 199.00 Job Training Center 59.50 54.00 53.00 51.00 49.00 57.50 55.00 55.00 53.00 53.00 Medical Examiner - - - - 9.40 9.40 10.70 10.70 10.70 10.70 HSD Administration 24.25 23.25 22.75 24.75 28.25 28.25 23.25 21.25 19.75 19.75 Government Services 3.00 2.00 3.00 3.00 2.00 2.00 2.00 2.00 2.00 - Government Services Administration 3.00 2.00 3.00 3.00 2.00 2.00 2.00 2.00 2.00 - Library Services 92.80 88.20 88.20 88.20 88.20 86.80 87.90 88.10 78.20 79.20 County Library 90.80 86.20 86.20 86.20 86.20 84.80 85.90 86.10 76.20 77.20 Law Library 2.00 2.00 2.00 2.00 2.00 2.00 2.00 2.00 2.00 2.00 County Totals 1,895.55 1,768.65 1,723.18 1,713.58 1,776.75 1,811.05 1,793.80 1,810.50 1,780.70 1,770.24 Non-Complement 38.20 38.20 49.95 39.65 24.85 19.60 19.60 20.60 13.25 15.25 Unfunded - 84.35 68.45 94.95 76.95 65.45 47.30 47.30 56.85 10.95 Percent Change of County Totals 1.2% -6.7% -2.6% -0.6% 3.7% 1.9% -1.0% 0.9% -1.6% -0.6% Population 313,197 316,830 326,393 328,614 331,246 332,751 335,308 330,844 334,045 337,394 Number of FTE's per 1,000 population 6.1 5.6 5.3 5.2 5.4 5.4 5.3 5.5 5.3 5.2 Notes: Source: Anoka County Human Resources Department and Finance & Central Services Division Non-Complement positions are limited term and/or contingent positions that are employees of Anoka County who, in most cases, are performing duties for another governmental or non-governmental entity, and these duties would not be considered duties that are a direct responsibility of Anoka County. These employees have all the responsibilities, benefits, and rights of any other limited term or contingent employee. Due to State and Federal funding reductions Anoka County has 10.95 unfunded positions for 2012. Source: U.S. Census Bureau and Metropolitan Council (2011 population is based on past years' growth). County reorganization resulted in reassignment of programs to various program areas. Unaudited ANOKA COUNTY ANOKA, MINNESOTA COUNTY FULL TIME EQUIVALENTS BY PROGRAM AREA LAST TEN FISCAL YEARS 107 ---PAGE BREAK--- Table 18 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 Function / program General government Property Records & Taxation Document counts per year 143,188 178,408 126,767 117,146 99,669 83,254 68,598 77,413 71,788 62,395 Parcel accounts per year 123,116 126,983 128,388 133,483 134,718 134,954 135,079 135,342 135,460 135,373 Election Services Number of registered voters not an election year) 182,295 * 208,810 * 200,254 * 222,572 * 193,058 * Number of votes cast not an election year) 140,361 * 174,258 * 133,965 * 182,559 * 131,703 * License Bureau & Vital Statistics License Bureau and Vital Statistics transactions 411,671 480,555 448,595 456,606 459,862 468,686 458,174 450,252 440,160 437,345 County Attorney Criminal /Juvenile/Victim Witness Cases 1,740 1,919 1,960 2,258 4,651 4,458 3,880 4,179 4,702 4,363 Civil/Family Law/Protective Services Cases 3,708 3,986 4,509 4,557 4,652 4,477 4,977 5,210 5,088 5,124 Court Appointed Attorneys Civil Commitments filed 253 299 305 328 321 336 333 257 252 267 Paternity 221 200 181 242 235 215 347 212 206 155 Transit & Volunteer Transportation Passenger count 214,511 220,419 222,438 229,763 255,401 254,876 274,307 263,555 280,142 331,308 Veteran's Services Public safety Sheriff Calls for service 32,484 32,438 34,201 35,421 34,861 34,417 31,251 30,292 30,530 31,018 Jail bookings 11,242 11,817 12,378 13,450 13,096 12,157 11,853 11,228 10,404 9,800 Central Communications Calls for service 191,855 158,463 166,563 175,559 171,516 175,719 175,874 176,215 180,573 184,978 Fire calls for service 21,303 17,445 17,431 19,166 18,904 19,888 20,134 19,895 20,431 22,012 Community Corrections Probation caseload 14,473 20,282 19,262 18,626 19,291 19,856 20,359 20,026 18,968 15,506 Days served in institutions 100,372 109,296 113,299 126,810 130,760 119,839 109,836 91,962 98,316 76,852 Medical Examiner Number of death investigations performed 936 885 923 964 994 975 1,196 1,138 1,274 1,380 Highway and streets Vehicle miles traveled per day 7,701,356 7,926,930 8,127,398 8,179,506 8,168,273 8,355,111 8,283,744 8,171,320 8,171,919 8,188,710 Human services Economic Assistance Child support caseload 15,056 15,303 15,320 15,135 15,316 15,521 15,124 15,221 14,883 14,547 Public assistance caseload 12,038 13,550 14,625 15,685 16,275 16,605 17,127 19,024 20,745 23,348 Social Services Social Services Out of Home Placement Costs 8,440,915 7,777,505 7,090,847 7,406,033 6,892,756 6,927,762 6,317,023 4,322,505 4,548,695 3,707,578 Number of developmentally disabled persons receiving case management services 1,580 1,635 1,688 1,728 1,798 1,891 1,991 2,136 2,261 2,091 Mental Health Services Child Mental Health Out of Home Placement Costs 1,188,067 770,696 682,757 966,466 1,247,295 1,121,104 680,932 559,429 1,101,458 717,160 Requests for Civil Commitments 361 396 457 496 484 492 469 479 415 418 Community Health & Environmental Services Women, Infants and Children (WIC) average case count 4,516 4,729 4,913 5,506 5,756 5,937 6,030 5,812 5,610 6,550 Other Misc Human Service Programs Senior information line - number of calls 741 812 846 1,111 840 983 769 869 881 1,087 Waivered services caseload (data is based on April of each year) 411 433 472 510 580 630 610 560 712 588 Sanitation Intergrated Waste Management Recycling processed (in tons) 138,336 141,783 140,404 144,293 146,583 145,335 138,277 136,632 137,518 141,052 Waste delivered for processing (in tons) 156,678 154,081 158,440 153,182 153,635 159,327 158,194 151,744 136,232 135,208 Waste landfilled (in tons) 69,356 69,849 51,959 57,614 68,577 61,131 50,023 48,390 58,625 57,282 Culture and recreation County Library Number of persons served 1,255,605 1,214,292 1,436,208 1,455,715 1,349,843 1,232,639 2,041,742 2,065,193 1,933,360 2,048,075 Number of items loaned 3,061,142 2,984,378 2,976,161 2,884,438 2,863,174 3,109,288 3,237,405 3,370,139 3,719,392 3,859,169 Parks and Recreation Regional and County Park visits 3,000,000 3,150,000 3,200,000 3,300,000 3,300,000 3,400,000 3,500,000 3,500,000 3,800,000 3,800,000 Golf Course Rounds of golf played 26,773 28,412 29,317 29,257 32,000 34,342 34,240 35,000 31,853 30,431 Aquatic Center Water Park attendance 58,000 107,000 84,000 111,000 113,000 113,000 96,000 78,000 122,000 117,000 Conservation of natural resources Minnesota Extension Service Adult Program Participants 9,577 13,538 12,222 15,593 12,961 15,068 15,217 11,210 11,100 30,446 Youth program Participants 9,715 8,577 7,044 5,964 7,898 2,233 7,296 13,059 14,000 8,974 Economic development Job Training Center Minnesota Family Investment Program (MFIP) Families using employment & training services 3,409 3,500 3,528 3,654 3,562 3,520 3,597 3,873 3,685 3,586 Community Development (data is based on fiscal year June 30) Households assisted with housing 59 43 144 148 121 140 140 76 49 168 People assisted 10,120 14,119 29,589 6,124 3,825 3,481 7,099 5,749 4,929 2,547 Public improvements and related activities 16 1 1 14 2 4 3 2 7 2 Source: Various County departments Unaudited ANOKA COUNTY ANOKA, MINNESOTA OPERATING INDICATORS BY FUNCTION / PROGRAM LAST TEN FISCAL YEARS AVAILABLE 108 ---PAGE BREAK--- Table 19 Average Fiscal Investment Rate of Year Earnings & Return 2003 3,178,296 $ 2.94% 2004 2,378,413 2.12% 2005 3,217,480 2.78% 2006 5,158,318 4.13% 2007 6,483,889 4.48% 2008 6,042,162 3.75% 2009 4,761,461 2.82% 2010 6,843,576 3.48% 2011 2,925,285 1.31% 2012 8,033,665 3.28% Notes: Unaudited ANOKA COUNTY ANOKA, MINNESOTA RETURN ON INVESTMENTS LAST TEN FISCAL YEARS Earnings are from investments managed by Anoka County's Treasury Manager and external Fiscal Agent Managers. for External Investment Pools". Source: Anoka County Finance and Central Services Division Average rate of return calculated on cash balances. Investment Earnings and resulting Average Rate of Return have been adjusted to eliminate changes in the fair value of investments that are required by Governmental Accounting Standards Board (GASB) Statement 31, "Accounting and Financial Reporting for Certain Investments and 0.00% 1.00% 2.00% 3.00% 4.00% 5.00% 6.00% 7.00% 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 RATE OF RETURN FISCAL YEAR AVERAGE RATE OF RETURN PERCENTAGE 109 ---PAGE BREAK--- Table 20 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 Governmental activities: General government Courthouse 1 1 1 1 1 1 1 1 1 1 Government Center 1 1 1 1 1 1 1 1 1 1 Human Service Center 1 1 1 1 1 1 1 1 1 1 License Bureau Center 1 1 1 1 1 1 1 1 1 1 Head start facility 1 1 1 1 1 1 1 1 1 0 Miscellaneous structures 3 3 3 3 3 3 3 3 3 3 Regional Treatment Center buildings 4 15 18 18 18 17 16 16 16 17 Parking ramp 1 1 1 1 1 1 1 1 1 1 Ground and maintenance equipment 7 7 9 9 9 10 12 13 13 12 Licensed vehicles/trailers 20 21 23 27 26 28 28 29 31 33 Public safety Adult correctional institutions 2 2 2 2 2 2 2 2 2 2 Juvenile correctional institutions 5 5 5 5 5 5 5 5 5 5 Radio repair facility, towers, and shelters 5 11 11 18 20 20 20 20 19 20 Medical Examiner building 0 0 0 0 0 0 1 1 1 1 Sheriffs Public Safety Campus 0 0 0 0 0 0 0 1 1 1 Sheriff's patrol buildings 2 2 2 2 2 2 2 2 2 1 Sheriff's rifle range buildings 6 6 6 6 6 6 6 4 4 3 Sheriff's substation buildings 3 0 0 0 0 0 0 0 0 0 Boats, motors, snowmobiles,atv 13 11 12 13 13 16 16 17 17 18 Licensed vehicles/trailers 27 26 24 24 25 24 24 23 28 26 Patrol units 77 78 85 88 90 93 94 95 92 96 Highways and streets Highway buildings 7 7 9 9 8 8 8 8 8 8 Contractors equipment 25 26 26 26 20 20 20 25 25 29 Licensed vehicles/trailers 71 72 74 74 76 80 83 83 92 94 Two lane (road miles) 332.74 332.74 332.74 324.92 322.96 322.21 320.64 311.81 306.37 304.81 Four plus lane (road miles) 89.36 89.36 89.36 95.43 99.61 100.36 101.93 107.09 111.53 111.54 Bridges 70 70 70 70 70 70 70 70 70 70 Human services Licensed vehicles 6 0 0 0 0 0 0 0 0 0 Head start facility 0 0 0 0 0 0 0 0 0 1 Sanitation Educational trailers 2 2 2 2 2 2 2 2 2 2 Household hazardous waste facility 0 0 1 1 1 1 1 1 1 1 Culture and recreation Regional parks 7 7 7 7 7 7 7 7 7 7 County parks 7 7 7 6 6 6 6 6 6 6 Regional park reserves 2 2 2 2 2 2 2 3 3 3 Regional trails 6 7 7 7 7 7 7 7 7 7 Activity center/contact stations 10 10 10 10 10 10 10 10 10 10 Anderson House 2 2 2 2 2 2 2 2 0 0 Archery range 2 2 2 2 2 2 2 2 2 2 Banfil-Locke Center for the Arts 1 1 1 1 1 1 1 1 1 1 Camp Salie 1 1 1 1 3 3 3 3 3 3 Camper cabin sites 0 0 0 0 0 0 0 0 4 4 Fairground buildings 8 8 8 8 8 8 8 8 8 8 Miscellaneous park buildings 15 15 15 15 16 16 21 20 21 21 Park shelters and restrooms 56 54 53 53 55 55 57 55 57 57 Reidel Farm Estate 1 1 1 1 1 1 1 1 1 1 Riding stable buildings 5 5 5 5 5 5 5 5 5 5 Wargo Nature Center 1 1 1 1 1 1 1 1 1 1 Chomonix Golf Course (18 hole) 0 0 1 1 1 1 1 1 1 1 Ground and maintenance equipment 49 51 71 74 91 89 80 87 86 84 Licensed vehicles/trailers 48 51 54 56 51 49 47 47 47 47 Libraries Regional 2 2 2 2 2 2 2 2 2 2 Branch 6 6 6 5 5 5 5 5 5 5 Economic development Senior housing developments 3 3 3 3 4 4 4 4 4 4 Business-type activities: Chomonix Golf Course (18 hole) 1 1 0 0 0 0 0 0 0 0 Bunker Beach Aquatic Center 1 1 1 1 1 1 1 1 1 1 Notes: Chomonix Golf Course reclassified in 2005 as a Governmental Activity. Source: Anoka County Capital Asset Master File Unaudited ANOKA COUNTY ANOKA, MINNESOTA CAPITAL ASSETS AND INFRASTRUCTURE STATISTICS BY FUNCTION LAST TEN FISCAL YEARS 110 ---PAGE BREAK--- ANOKA COUNTY ANOKA, MINNESOTA Table 21 Insurance Coverage Company Amounts/Limit Property Chubb Insurance Company $300,000,000 Building, Contents, Boiler and Machinery Crime & Faithful Performance Bond American International Group $750,000 Computer Fraud, Money and Securities Forgery Faithful Performance Bond General Liability Anoka County Liability Indemnification Plan $500,000 per person/$1,500,000 per occurrence Public Officials Liability Professional Liability Law Enforcement Liability Bunker Beach Aquatic Center Liability Professional Liability Anoka County Liability Indemnification Plan $500,000 per person/$1,500,000 per occurrence Environmental Services General Liability General Liability - Joint Law Enforcement Gun Range LMCIT $1,500,000 per occurrence Crime - Joint Law Enforcement Gun Range LMCIT $250,000 Petrofund - Joint Law Enforcement Gun Range LMCIT $250,000 General Liability PGA Special Event Golf Tournament Philadelphia $1,000,000 per occurrence/$3,000,000 aggregate General Liability Battery of Light Artillery The Cincinnati Specialty Underwriters $1,000,000 per occurrence/$2,000,000 aggregate General Liability Neighborhood Stabilization Program CSU Producer Resources $1,000 000 per occurrence/$2,000,000 aggregate Property Neighborhood Stabilization Program CSU Producer Resources $535,600 Automobile Liability and Physical Damage Traveler's $1,500,000 CSL/$350,000 UM/$350,000 UIM Professional Liability Midwest Medical Insurance $1,000,000 each claim/$3,000,000 aggregate Medical Examiner Workers' Compensation Anoka County Workers' Comp. Self Insured Plan Statutory Anoka County Employees Liquor Liability Founder's $1,000,000 per occurrence/aggregate Chomonix Golf Course General Liability and Professional General Star $2,000,000 per occurrence/aggregate East Central Regional Juvenile Center General Liability Child in Need of Protection Services (CHIPS) Auto Owners $1,000,000 per occurrence $2,000,000 aggregate Anoka County Affiliated Entities: Anoka Conservation District Property LMCIT $591,548 Crime LMCIT $250,000 per occurrence Liability LMCIT $1,500,000 per occurrence Auto LMCIT $1,200,000 CSL Equipment LMCIT $60,545 Workers' Compensation State Fund Mutual Statutory Anoka County Historical Society Liability - Collector Vehicle Policy Philadelphia $1,000,000 CSL HRA - The Willows of Ham Lake General Liability LMCIT $1,500,000 per occurrence Crime LMCIT $250,000 per occurrence Property & Contents LMCIT $6,630,237 Sewer Backup LMCIT Included (Continued) YEAR ENDED DECEMBER 31, 2012 SUMMARY OF INSURANCE IN FORCE 111 ---PAGE BREAK--- ANOKA COUNTY ANOKA, MINNESOTA Table 21 SUMMARY OF INSURANCE IN FORCE (Continued) YEAR ENDED DECEMBER 31, 2012 Insurance Coverage Company Amounts/Limit HRA - Chauncey-Barrett Gardens - Bldg. I of Centerville General Liability LMCIT $1,500,000 per occurrence Crime LMCIT $250,000 per occurrence Property & Contents LMCIT $2,527,746 Sewer Backup LMCIT Included HRA - Chauncey-Barrett Gardens - Bldg. II of Centerville General Liability LMCIT $1,500,000 per occurrence Crime LMCIT $250,000 per occurrence Property & Contents LMCIT $5,215,216 Sewer Backup LMCIT Included HRA - Savannah Oaks of Ramsey General Liability LMCIT $1,500,000 per occurrence Crime LMCIT $250,000 per occurrence Property & Contents LMCIT $7,897,153 Sewer Backup LMCIT Included HRA - Oaks of Lake George General Liability LMCIT $1,500,000 per occurrence Crime LMCIT $250,000 per occurrence Property & Contents LMCIT $8,621,454 Sewer Backup LMCIT Included Minnesota Youth Program American Compensation Statutory Workers' Compensation Job Training Center - Students One Beacon America $25,000 per person Accident Medical Job Training Center - SCSEP Program RTW, Inc Statutory Workers' Compensation Minnesota Family Investment Program State Fund Mutual Statutory Workers' Compensation Anoka-Hennepin Narcotics and Violent Crimes Task Force Liability LMCIT $1,500,000 per occurrence/$2,000,000 aggregate Excess Liability LMCIT $1,000,000 per occurrence/aggregate Auto (Hired, non-owned) LMCIT $1,500,000 CSL Crime LMCIT $250,000 per occurrence Property LMCIT $234,171 Northwestern Anoka Co. Community Consortium Liability LMCIT $1,500,000 per occurrence Property LMCIT $153,796 Crime LMCIT $250,000 Auto (Hired, non-owned) LMCIT $1,500,000 CSL Source: Anoka County Finance and Central Services Division Unaudited 112