RWHAP Part a City of Minneapolis 2019 Audit Report
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Comprehensive Annual Financial Report City of Minneapolis, Minnesota For the fiscal Year Ended December 31, 2019 COMPREHENSIVE ANNUAL FINANCIAL REPORT CITY OF MINNEAPOLIS, MINNESOTA For the Fiscal Year Ended December 31, 2019 FINANCE AND PROPERTY SERVICES DEPARTMENT TABLE OF CONTENTS INTRODUCTORY SECTION Page Transmittal Letter iv Organizational Chart ix Mayor and Council x Certificate of Achievement for Excellence in Financial Reporting xi FINANCIAL SECTION Independent Auditor’s Report 1 Management’s Discussion and Analysis 5 Basic Financial Statements: Government‐Wide Financial Statements Statement of Net Position 29 Statement of Activities 30 Fund Financial Statements Governmental Funds – Balance Sheet 31 Reconciliation of the Governmental Funds Balance Sheet to the Government‐Wide Statement of Net Position – Governmental Activities 32 Governmental Funds – Statement of Revenues, Expenditures, and Changes in Fund Balances 33 Reconciliation of the Statement of Revenues, Expenditures, and Changes in Fund Balances of Governmental Funds to the Statement of Activities – Governmental Activities 34 Proprietary Funds – Statement of Net Position 35 Proprietary Funds – Statement of Revenues, Expenses, and Changes in Net Position 37 Proprietary Funds – Statement of Cash Flows 38 Custodial Funds ‐ Statement of Fiduciary Net Position 39 Custodial Funds ‐ Statement of Changes in Fiduciary Net Position 40 Combining Statement of Net Position – Discrete Component Units 41 Combining Statement of Activities – Discrete Component Units 42 Notes to the Financial Statements: Note 1 ‐ Summary of Significant Accounting Policies 43 Note 2 ‐ Deposits and Investments 61 Note 3 ‐ Receivables 67 Note 4 ‐ Capital Assets 69 Note 5 ‐ Long‐Term Debt 72 Note 6 ‐ Industrial, Commercial, and Housing Revenue Bonds and Notes 77 Note 7 ‐ Deferred Inflows of Resources 77 Note 8 ‐ Leases 78 Note 9 ‐ Interfund Transactions 79 Note 10 ‐ Net Position/Fund Balances 82 Note 11 ‐ Defined Benefit Pension Plans 84 Note 12 ‐ Defined Contribution Plan – CPED 94 Note 13 ‐ Postemployment Benefits Plan 94 Note 14 ‐ Vacation, Severance, Sick and Compensatory Time Pay 98 Note 15 ‐ Self‐Insured Employee Health Plans 99 Note 16 ‐ Risk Management and Claims 99 Note 17 ‐ Cleanup of Hazardous Materials 100 Note 18 ‐ Tax Abatements 100 Note 19 ‐ Other Commitments and Contingencies 100 Note 20 ‐ Subsequent Events 101 i TABLE OF CONTENTS Required Supplemental Information Other Than Management’s Discussion and Analysis: Page General Fund Schedule of Revenues, Expenditures, and Changes in Fund Balance – Budget and Actual 103 Community Planning and Economic Development Special Revenue Fund Schedule of Revenues, Expenditures, and Changes in Fund Balance – Budget and Actual 104 Schedule of Employer Contributions PERA General Employees Retirement Plan: City of Minneapolis 105 Municipal Building Commission 105 Schedule of Proportionate Share of Net Pension Liability PERA General Employees Retirement Plan: City of Minneapolis 106 Municipal Building Commission 106 Schedule of City of Minneapolis’ Contributions PERA Public Employees Police and Fire Plan 107 Schedule of City of Minneapolis’ Proportionate Share of Net Pension Liability PERA Public Employees Police and Fire Plan 107 Schedule of City of Minneapolis’ Contributions Teachers Retirement Association (Special Funding Situation) 108 Schedule of City of Minneapolis’ Proportionate Share of Net Pension Liability Teachers Retirement Association (Special Funding Situation) 108 Schedule of Changes in Total OPEB Liability and Related Ratios: City of Minneapolis 109 Municipal Building Commission 109 Notes to the Required Supplemental Information 110 Other Supplemental Information: Combining and Individual Fund Statements and Schedules: Governmental Funds Combining Balance Sheet – Non‐Major Funds 118 Governmental Funds Combining Statement of Revenues, Expenditures, and Changes in Fund Balances – Non‐Major Funds 119 Special Revenue Funds Combining Balance Sheet – Non‐Major Funds 120 Special Revenue Funds Combining Statement of Revenues, Expenditures, and Changes in Fund Balances – Non‐Major Funds 122 Budgetary Comparison Schedules: Arena Reserve Special Revenue Fund Schedule of Revenues, Expenditures, and Changes in Fund Balance – Budget and Actual 124 Board of Estimate and Taxation Special Revenue Fund Schedule of Revenues, Expenditures, and Changes in Fund Balance – Budget and Actual 125 Downtown Assets Special Revenue Fund Schedule of Revenues, Expenditures, and Changes in Fund Balance – Budget and Actual 126 HUD Consolidated Plan Special Revenue Fund Schedule of Revenues, Expenditures, and Changes in Fund Balance – Budget and Actual 127 Convention Center Special Revenue Fund Schedule of Revenues, Expenditures, and Changes in Fund Balance – Budget and Actual 128 Self‐Managed Special Service Districts Special Revenue Fund Schedule of Revenues, Expenditures, and Changes in Fund Balance – Budget and Actual 129 Employee Retirement Special Revenue Fund Schedule of Revenues, Expenditures, and Changes in Fund Balance – Budget and Actual 130 Grants – Federal Special Revenue Fund Schedule of Revenues, Expenditures, and Changes in Fund Balance – Budget and Actual 131 Grants – Other Special Revenue Fund Schedule of Revenues, Expenditures, and Changes in Fund Balance – Budget and Actual 132 Police Special Revenue Fund Schedule of Revenues, Expenditures, and Changes in Fund Balance – Budget and Actual 133 ii TABLE OF CONTENTS Other Supplemental Information: Page Combining and Individual Fund Statements and Schedules: Budgetary Comparison Schedules (continued) Neighborhood and Community Relations Special Revenue Fund Schedule of Revenues, Expenditures, and Changes in Fund Balance – Budget and Actual 134 Regulatory Services Special Revenue Fund Schedule of Revenues, Expenditures, and Changes in Fund Balance – Budget and Actual 135 Debt Service Funds Combining Balance Sheet – Non‐Major Funds 136 Debt Service Funds Combining Statement of Revenues, Expenditures, and Changes in Fund Balances – Non‐Major Funds 137 Internal Service Funds Combining Statement of Net Position 138 Internal Service Funds Combining Statement of Revenues, Expenses, and Changes in Fund Net Position 139 Internal Service Funds Combining Statement of Cash Flows 140 Custodial Funds ‐ Statement of Fiduciary Net Position 141 Custodial Funds ‐ Statement of Changes in Fiduciary Net Position 142 Schedule of Governmental Activity Bonds and Notes 143 Schedule of Business–Type Activity Bonds and Notes 147 Schedule of Intergovernmental Revenue 149 Schedule of Expenditures of Federal Awards ‐ All Fund Types 150 Notes to the Schedule of Expenditures of Federal sAward 154 Municipal Building Commission: Balance Sheet and Reconciliation of the Governmental Funds Balance Sheet to the Government‐Wide State of Net Position – Governmental Activities 156 Statement of Revenues, Expenditures, and Changes in Fund Balances and Reconciliation of the Statement of Revenues, Expenditures, and Changes in Fund Balances of Governmental Funds to the Statement of Activities – Governmental Activities 157 STATISTICAL SECTION Statistical Section (Unaudited) Schedule 1 ‐ Net Position by Component 160 Schedule 2 ‐ Changes in Net Position 161 Schedule 3 ‐ Fund Balance, Governmental Funds 163 Schedule 4 ‐ Changes in Fund Balance, Governmental Funds 164 Schedule 5 ‐ Assessed Value and Actual Value of Taxable Property 165 Schedule 6 ‐ Direct and Overlapping Property Tax Rates 166 Schedule 7 ‐ Principal Property Tax Payers 167 Schedule 8 ‐ Property Tax Levies and Collections 168 Schedule 9 ‐ Outstanding Debt by Type and Per Capita 169 Schedule 10 ‐ Ratios of Net General Bonded Debt Outstanding 170 Schedule 11 ‐ Direct and Overlapping Governmental Activities Debt 171 Schedule 12 ‐ Legal Debt Margin Information 172 Schedule 13 ‐ Pledged‐Revenue Coverage 173 Schedule 14 ‐ Demographic and Economic Statistics 178 Schedule 15 ‐ Principal Employers 179 Schedule 16 ‐ Full‐time Equivalent City Government Employees by Function 180 Schedule 17 ‐ Operating Indicators by Function/Program 181 Schedule 18 ‐ Capital Assets Statistics by Function/Program 183 iii FinanceandPropertyServices 350S.FifthSt.ͲRoom325M Minneapolis,MN55415 TEL 612.673.3000 August13,2020 TheHonorableMayorandMembersoftheCityCouncilandCitizensoftheCityofMinneapolis: TRANSMITTAL WearepleasedtopresenttheComprehensiveAnnualFinancialReport(CAFR)fortheCityofMinneapolis(theCity) fortheyearendedDecember31,2019.ThepurposeofthereportistopresentthefinancialpositionoftheCityand theresultsofitsoperationsfortheyearthenended.Thefinancialstatementsandsupportingscheduleshavebeen preparedinaccordancewithaccountingprinciplesgenerallyacceptedintheUnitedStatesofAmericaasprescribed by the Governmental Accounting Standards Board (GASB), the Government Finance Officers Association of the UnitedStatesandCanada(GFOA)andotherruleͲmakingbodies,andauditedinaccordancewithgenerallyaccepted auditingstandardsbytheOfficeoftheStateAuditor(OSA). TheCity’smanagementisresponsiblefortheaccuracyofthefinancialstatementsandthecompletenessandfairness oftheirpresentationintheCAFR.Tothebestofourknowledge,theCAFRisaccurateinallmaterialrespectsand fairlysetsforththefinancialpositionandresultsofCityoperationsasmeasuredbythefinancialactivityofitsvarious funds.WebelievethereportcontainsalldisclosuresnecessaryforthereadertounderstandtheCity’sfinancial affairs. ThistransmittalletterisdesignedtocomplementtheManagement’sDiscussionandAnalysis(MD&A)andshouldbe readinconjunctionwithit.TheMD&Aprovidesanarrativeintroduction,overview,andanalysistoaccompanythe