· 7 Management Discussion and Analysis 10 Basic Financial Statements Government-wide Financial...

Comprehensive Annual Financial Report

Minneapolis Park and Recreation Board Minneapolis, Minnesota

For the year ended December 31, 2018

COMPONENT UNIT NNUAL FINANCIAL REPORT A

FOR THE YEAR ENDED DECEMBER 31, 2018

FINANCE DEPARTMENT

MINNEAPOLIS PARK AND RECREATION BOARD MINNEAPOLIS, MINNESOTA

TABLE OF CONTENTS Introductory Section Page Letter of Transmittal 1 Organizational Structure 4 Commissioners and Officers 5

Financial Section Independent Auditor's Report 7

Management Discussion and Analysis 10

Basic Financial Statements Government-wide Financial Statements

Statement of Net Position 18 Statement of Activities 19

Fund Financial Statements Balance Sheet - Governmental Funds 20 Reconciliation of the Total Governmental Funds Balance Sheet to the Government-wide Statement of Net Position - Governmental Activities 21 Statement of Revenues, Expenditures and Changes in Fund

Balances - All Governmental Funds 22 Reconciliation of the Statement of Revenues, Expenditures and Changes

in Fund Balances of Governmental Funds to the Government-wide Statement of Activities - Governmental Activities 23

Statement of Net Position - Proprietary Funds 24 Reconciliation of the Proprietary Funds – Business-Type Activities Statement of Net Position to the Government-wide Statement of Net Position – Business-Type Activities 25 Statement of Revenues, Expenses and Changes in Net Position-

Proprietary Funds 26 Reconciliation of the Statement of Revenues, Expenses and Changes in Net Position

of Proprietary Funds – Business-Type Activities to the Government-wide Statement of Activities – Business-Type Activities

Statement of Cash Flows - Proprietary Funds 27 28

Notes to the Financial Statements 29

Required Supplementary Information Schedule of Revenues, Expenditures and Changes in Fund Balance - Budget and Actual

Park and Recreation General Fund

Schedule

A-1 51 Museum County-Wide Levy Special Revenue Fund Park Grant and Dedicated Revenue Special Revenue Fund Tree Preservation and Reforestation Special Revenue Fund Park Dedication Fees Special Revenue Fund

A-2A-3A-4A-5

53 54 55 56

TABLE OF CONTENTS (Continued)

Page Required Supplementary Information (Continued)

Schedule PERA General Employees Retirement Plan

Schedule of Proportionate Share of Net Pension Liability A-6 57

PERA Public Employees Police and Fire Plan

Other Postemployment Benefits

Schedule of Contributions A-7 58

Schedule of Proportionate Share of Net Pension Liability A-8 59 Schedule of Contributions A-9 60

Schedule of Changes in Total OPEB Liability and Related Ratios A-10 61 Notes to the Required Supplementary Information 62

Supplementary Information Combining Balance Sheet - Other Governmental Funds B-1 65 Combining Statement of Revenues, Expenditures and Changes in

Enterprise Fund Schedule of Changes in Net Position - Reserved

Internal Service Funds

Combining Statement of Revenues, Expenses and

Combining Schedule of Revenues, Expenses and

Schedule of Changes in Net Position – Reserved for

Fund Balances - Other Governmental Funds B-2 66

For Renewal and Replacement C-1 67 Schedule of Operating Income - by Project C-2 68

Combining Statement of Net Position D-1 69

Changes in Net Position D-2 70 Combining Statement of Cash Flows D-3 71

Changes in Net Position – By Major Program D-4 72

Specific Purposes D-5 73 Schedule of Intergovernmental Revenue E-1 75

Statistical Section (Unaudited) Schedule 1 - Government-Wide Expenses by Function 77 Schedule 2 - Government-Wide Revenues 78 Schedule 3 - General Fund Revenues by Source and Expenditures by Function 79 Schedule 4 - Assessed Value and Actual Value of Taxable Property 80 Schedule 5 - Direct and Overlapping Property Tax Rates 81 Schedule 6 - Principal Property Tax Payers 82 Schedule 7 - Property Tax Levies and Collections – General Fund 83 Schedule 8 - Outstanding Debt by Type and Per Capita 84 Schedule 9 - Ratios of Net General Bonded Debt Outstanding 85 Schedule 10 - Direct and Overlapping Governmental Activities Debt 86 Schedule 11 - Legal Debt Margin Information 87 Schedule 12 - Demographic and Economic Statistics 88 Schedule 13 - Principal Employers 89 Schedule 14 - Full-time Equivalent City Government Employees by Function 90

INTRODUCTORY SECTION

June 24, 2019

Brad Bourn, President Minneapolis Park & Recreation Board Minneapolis, Minnesota 55411

Al Bangoura, Superintendent Minneapolis Park & Recreation Board Minneapolis, Minnesota 55411

Citizens of the Minneapolis Park & Recreation Board Minneapolis, Minnesota

It is our pleasure to submit to you the Annual Financial Report of the Minneapolis Park & Recreation Board for the fiscal year ended December 31, 2018. The purpose of this report is to provide the Park & Recreation Board, Mayor, City Council, staff, citizens, and other interested parties with useful information concerning the Park & Recreation Board’s operations and financial position.

Responsibility for both the accuracy of the presented data and the completeness and fairness of the presentation, including all disclosures, rests with the Park & Recreation Board. The data presented in this report is believed to be accurate in all material respects. We believe the report contains all disclosures necessary for the reader to understand the Park & Recreation Board’s financial affairs.

Report Format The presentation in this report is in compliance with the requirements of governmental financial reporting. The content of the report is prepared in accordance with generally accepted standards of reporting as recommended by the Governmental Finance Officers Association of the United States and Canada, the Governmental Accounting Standards Board, the Office of the State Auditor, State of Minnesota and the City Charter of the City of Minneapolis, Minnesota.

The transmittal letter is designed to complement the Management Discussion & Analysis (MD&A) and should be read in conjunction with it. The Minneapolis Park & Recreation Board’s MD&A can be found immediately following the report of the independent auditor.

Form of Government The Minneapolis Park & Recreation Board was established in 1883 by an act of the Minnesota Legislature. It is to serve as an independently elected, semi-autonomous body responsible for maintaining and developing the diverse system of land and water areas for citizens of the city. It is a nine-member board, serving four-year terms. Six commissioners are elected from designated park districts, and three are elected from the city at-large. The Park & Recreation Board is a discretely presented component unit of the City of

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Minneapolis. The City Finance Officer acts as Treasurer of the Park & Recreation Board.

Reporting Entity The accounts of the Minneapolis Park & Recreation Board are maintained in accordance with City Charter on a fund basis representing a series of independent fiscal and accounting entities with self-balancing sets of accounts recording resources together with related liabilities and equities which are segregated for the purpose of carrying on specific activities.

Budgetary Control is maintained in compliance with City Charter requirements that specify that funds be first appropriated by the Park & Recreation Board before being spent by the departments for ongoing services and for projects in all funds except for the Park Grant and Dedicated Revenue Fund of the Special Revenue Fund Type. All purchase orders, contracts and other obligation documents, which exceed appropriations, are not encumbered or processed until additional appropriations are made available. Operating Encumbrances outstanding at December 31 are included as part of assigned fund balance in the governmental funds and do not constitute expenditures or liabilities.

The State Auditor will issue a management and compliance report covering the review of the Minneapolis Park & Recreation Board’s system of internal control over financial reporting and tests of compliance with certain provisions of laws, regulations, contracts and grant agreements and other matters. The management and compliance report will not modify or affect, in any way, this report on the financial statements.

Economic Condition and Outlook A discussion and analysis of the Park and Recreation Board’s overall financial condition during the fiscal year ended 2018 is included as part of the MD&A.

Debt Administration In 2006, the Minneapolis Park & Recreation Board entered into a loan agreement for the amount of $710,000 with Wells Fargo Brokerage Services, LLC for the purchase of an ice arena facility and land at 1306 Central Avenue Northeast. This facility is intended to be self-supporting with a portion of the net income generated being allocated to the debt service payments.

In 2015, the Minneapolis Park and Recreation Board entered into a contract for deed agreement in the amount of $2,000,000 with St. Anthony Real Estate Company for the purchase of 3 parcels of land. In November 2017, the Park Board extended the Balloon date to January 2020. The interest rate is four percent (4%) per annum, to be paid in full, together with all accrued interest, on or before January 2, 2020.

In 2016, the Park and Recreation Board entered into a Contract for Deed in the amount of $2,100,000 with L and R Development, LLC for the purchase of one parcel of land located at 4022 ½ Washington Avenue North. The promissory note shall bear interest at a rate of six percent (6%) per annum. Monthly principal and interest payments commenced on April 1, 2016, with the entire remaining unpaid balance of principal and interest due and payable on the first day of the 24th month or March 1, 2018. On March 18, 2018 the Park and Recreation Board refinanced this purchase and secured a $1,160,000 mortgage note and mortgage with Bell Bank to partially finance the property acquisition.

In 2018, the Park Board acquired a mortgage note in the amount of $1,160,000 with Bell Bank, a North Dakota corporation for the partial refinancing of property located at 4022 ½ Washington Avenue North. The new note shall bear interest at the rate of 3.3 percent (3.3%) payable in 120 installments of principal and interest, commencing April 1, 2018 and will mature on March 1, 2028.

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Fitch

In 2018, the Park and Recreation Board issued a Promissory Note in the amount of $600,000 with Marylee Hardenbergh for the purchase of one parcel of land located at 2230 Marshall Street NE. The promissory note shall bear interest at a rate of four percent (4%) per annum and interest begins to accrue as of the date of the note, August 17, 2018. This note is payable in four (4) equal annual installments beginning on January 15, 2019 and continuing on January 15 of each year thereafter.

The City of Minneapolis accounts for all other Park & Recreation Board’s long-term obligations. The outstanding debt issued by the City of Minneapolis for projects benefiting the Park & Recreation Board is secured by the full faith and credit of the City of Minneapolis and not the Park & Recreation Board.

The City of Minneapolis’ conservative financial practices have earned its general obligation debt some of the highest ratings available from national bond rating services as follows:

– AA+ S & P Global Ratings – AAA

Cash Management The Minneapolis Park & Recreation Board’s cash at year-end is on deposit with the City of Minneapolis. Deposits of the Park & Recreation Board were either insured by Federal Depository Insurance or collateralized. All collateral on deposits was held by the Federal Reserve Bank of Minneapolis.

Risk Management The Minneapolis Park & Recreation Board accounts for its risk management activities as an internal service fund and charges the operating funds annually for the anticipated actuarially projected claims. The Park & Recreation Board’s risk management program operates under the direction of the Assistant Superintendent for Administration. Various programs have been developed to reduce the Park & Recreation Board’s risk of loss including: a comprehensive employee health & safety program; a strategy to reduce tort liability exposure; and, a strategy to reduce the frequency of injuries and illnesses and the cost of workers’ compensation.

Independent Audit The State of Minnesota requires an annual audit of the books of account, financial records, and transactions of the Minneapolis Park & Recreation Board by the Office of the State Auditor. This requirement has been complied with and the auditor’s opinion has been included in this report.

Acknowledgements Timely preparation of this report could not have been accomplished without the efficient and dedicated services of the Minneapolis Park & Recreation Board’s Finance Department. In addition, we would like to thank the State Auditor’s Office for their thoroughness and professionalism in conducting the Park & Recreation Board’s audit.

Respectfully submitted,

Julia M. Wiseman

Julia M. Wiseman Director of Finance

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MINNEAPOLIS PARK AND RECREATION BOARD

ORGANIZATION CHART

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MINNEAPOLIS PARK AND RECREATION BOARD

COMMISSIONERS AND OFFICERS

Commissioners

Brad Bourn Jono Cowgill Meg Forney Londel French AK Hassan Chris Meyer Steffanie Musich Kale Severson Latrisha Vetaw

Officers

President Brad Bourn

Vice President AK Hassan

Secretary Jennifer Ringold

Term of Office From

January 1, 2010 January 1, 2018 January 1, 2014 January 1, 2018 January 1, 2018 January 1, 2018 January 1, 2014 January 1, 2018 January 1, 2018

January 1, 2017

January 1, 2017

January 1, 2017

To

December 31, 2021 December 31, 2021 December 31, 2021 December 31, 2021 December 31, 2021 December 31, 2021 December 31, 2021 December 31, 2021 December 31, 2021

December 31, 2018

December 31, 2018

December 31, 2018

5

This Page Left Blank Intentionally.

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FINANCIAL SECTION

Management’s Responsibility for the Financial Statements

Auditor’s Responsibility

Government Auditing Standards

Government

Auditing Standards

7

Opinions

Emphasis of Matter – Change in Accounting Principle

Accounting and Financial Reporting for Postemployment Benefits Other Than Pensions

Other Matters Required Supplementary Information

8

Supplementary and Other Information




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MINNEAPOLIS PARK AND RECREATION BOARD MANAGEMENT DISCUSSION AND ANALYSIS

(Unaudited)

This discussion and analysis of the Park and Recreation Board of the City of Minneapolis’ financial performance provides an overview of the Park and Recreation Board’s financial activities for the fiscal year ended December 31, 2018. Please read it in conjunction with the Park and Recreation Board’s basic financial statements and information provided in the letter of transmittal.

Financial Highlights

The Park and Recreation Board’s government-wide net position increased as a result of this year’s operations by $12,053,399 or 3.5%. Net position of the business-type activities increased by $647,194 or 2.9%, and net position of the governmental activities increased by $11,406,205 or 3.5%.

The assets of the Park and Recreation Board exceeded its liabilities at the close of the most recent fiscal year by $348,461,541 (net position).

As of the close of the current fiscal year, the Park and Recreation Board’s Governmental Funds reported combined ending fund balances of $29,386,361.

As of the close of the current fiscal year, the Park and Recreation Board’s Proprietary Funds reported combined ending equity of $33,497,620. Ending equity of the business-type proprietary fund is $22,395,192. Ending net position of the governmental-type proprietary funds is $11,102,428.

Financial Statement Overview

This annual report consists of a series of financial statements. The Statement of Net Position and the Statement of Activities (on pages 18-19) provide information about the activities of the Park and Recreation Board as a whole and present a longer-term view of the Park and Recreation Board’s finances. Fund financial statements start on page 20. For governmental activities, these statements show how these services were financed in the short term as well as what remains for future spending. Fund financial statements also report the Park and Recreation Board’s operations in more detail than the government-wide statements by providing information about the Park and Recreation Board’s most financially significant funds. Notes to the financial statements start on page 29. The notes provide additional information that is essential to the full understanding of the data provided in the government-wide and fund financial statements. This report also contains required and supplementary information in addition to the basic financial statements.

Government-wide Financial Statements

The Statement of Net Position and the Statement of Activities

The government-wide financial statements provide an overview of the Park and Recreation Board as a whole. These statements include all assets and liabilities using the accrual basis of accounting, which is similar to the accounting used by most private-sector companies. Accrual of the current year’s revenues and expenses are accounted for regardless of when cash is received or paid.

These two statements report the Park and Recreation Board’s net position and the changes in components of net position. The Statement of Net Position presents the Park and Recreation Board’s assets and deferred outflows of resources and liabilities and deferred inflows of resources, with the difference between them reported as net position. The Statement of Activities presents information showing how the Park and Recreation Board’s net position changed during the most recent fiscal year. Over time, changes in the Park and Recreation Board’s net position is one indicator of whether its financial health is improving or deteriorating. Other non-financial factors should be considered, such as changes in the Park and Recreation Board’s property tax base and the condition of the Park and Recreation Board’s capital assets to determine the overall financial health of the Park and Recreation Board.

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The government-wide financial statements include not only the Park and Recreation Board (known as the primary government), but also a legally separate entity for which the nature and significance of the relationship with the primary government is such that exclusion could cause the Park Board’s basic financial statements to be misleading or incomplete. The Minneapolis Parks Foundation (Foundation) is the discretely presented component unit and is included in the basic financial statements of the Park Board in accordance with accounting principles generally accepted in the United States of America (GAAP). The Foundation financial statements are not included in this audit. The Foundation as a non-profit organization follows GAAP and is audited annually by an independent accounting firm.

In the Statement of Net Position and the Statement of Activities, the Park and Recreation Board is divided into two kinds of activities:

Governmental Activities: Most of the Park and Recreation Board’s basic services are reported here and are reported as Culture and Recreation. Property taxes and state and federal grants finance most of these activities.

Business-Type Activities: The Park and Recreation Board charges fees to customers to help cover all or most of the costs of certain services it provides. The Park and Recreation Board’s golf courses are reported here.

Fund Financial Statements

The fund financial statements begin on page 20 and provide detailed information about the funds. Some funds are required to be established by state law. In addition, the Park and Recreation Board has established other funds to help it control and manage money for specific purposes. The Park and Recreation Board’s two kinds of funds, governmental and proprietary, use different accounting approaches.

Governmental Funds: Governmental funds focus on how money flows into and out of those funds and the balances left at year-end that are available for spending. These funds are reported using the modified accrual basis of accounting, which measures cash and all other financial assets that can readily be converted to cash. Governmental fund information helps determine whether there are more or fewer financial resources that can be used in the near future to finance the Park and Recreation Board’s programs. In order to compare these fund statements to the government-wide statements which are presented using accrual accounting, reconciliations are presented with the governmental fund statements.

Proprietary Funds: Proprietary funds provide information about services that are supported by charges to outside customers or other units of the Park and Recreation Board. Proprietary funds are reported using accrual accounting which is the same as the accounting method used in the government-wide statements. The enterprise fund information provided in the fund level statements is the same as the business-type activities presented on the government-wide statements. There are two internal service funds presented on the fund level statements, which report activities that provide self-insurance, park equipment rental and information technology services to the Park and Recreation Board. On the government-wide statements the net internal service funds activities are combined with the governmental funds and included in the column titled governmental activities.

Government-wide Financial Analysis

The Park and Recreation Board’s total net position of $348,461,541 increased by $12,053,399 or 3.5% from a year ago. Current and other assets increased by $7,122,164 and capital assets increased by $10,848,693 from a year ago. Deferred Outflows-Pensions and Deferred Outflows-OPEB, decreased by $5,906,248 from a year ago. This analysis will focus first on net position and then on the changes in net position of the Park and Recreation Board’s governmental and business-type activities.

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Minneapolis Park and Recreation Board's Net Position Governmental Business-Type Total Primary Government

Restated Restated Restated 2018 2017 2018 2017 2018 2017

Current and other assets $ 52,770,016 $ 47,262,486 $ 3,316,853 $ 1,702,219 $ 56,086,869 $ 48,964,705 Capital assets 357,283,469 345,664,302 24,043,587 24,814,061 381,327,056 370,478,363

Total Assets 410,053,485 392,926,788 27,360,440 26,516,280 437,413,925 419,443,068

Deferred Outflows-OPEB 102,301 - 12,675 - 114,976 -Deferred Outflows-Pensions 14,110,828 19,788,050 667,361 1,011,363 14,778,189 20,799,413

Total Deferred Outflows 14,213,129 19,788,050 680,036 1,011,363 14,893,165 20,799,413

Long-term liabilities outstanding 71,157,038 73,531,498 4,598,874 4,827,734 75,755,912 78,359,232 Other liabilities 7,582,108 10,042,034 367,115 348,378 7,949,223 10,390,412

Total Liabilities 78,739,146 83,573,532 4,965,989 5,176,112 83,705,135 88,749,644

Deferred Inflows-Service Concessions Arrangement 4,672,164 - - - 4,672,164 -Deferred Inflows-Pensions 14,873,189 14,565,397 595,061 519,299 15,468,250 15,084,696

Total Deferred Inflows 19,545,353 14,565,397 595,061 519,299 20,140,414 15,084,696 Net position: Net investment in Capital Assets 353,598,165 341,847,293 23,886,073 24,598,779 377,484,238 366,446,072 Restricted 22,157,533 15,398,776 - - 22,157,533 15,398,776 Unrestricted (49,773,583) (42,670,160) (1,406,647) (2,766,547) (51,180,230) (45,436,707)

Total Net Position $ 325,982,115 $ 314,575,909 $ 22,479,426 $ 21,832,232 $ 348,461,541 $ 336,408,141

Net position of the Park and Recreation Board’s governmental activities increased by $11,406,205 or 3.5%. The unrestricted component of net position is ($49,773,583) and reflects the net pension obligation for the Park and Recreation Board’s governmental activities. Net position of the Park and Recreation Board’s business-type activities increased by $647,194 or 2.9%. The Park and Recreation Board commits net position to finance the continuing operations including capital improvements of the Enterprise Fund.

Minneapolis Park and Recreation Board's Change in Net Position Governmental Business-Type Total Primary Government

2018 2017 2018 2017 2018 2017 Revenues Program revenues: Charges for services $ 17,641,715 $ 13,363,014 $ 12,276,500 $ 10,502,488 $ 29,918,215 $ 23,865,502 Operating grants & contributions 3,318,624 3,903,079 - - 3,318,624 3,903,079 Capital grants & contributions 22,484,499 45,641,750 200 567,122 22,484,699 46,208,872

General revenues: Taxes 74,564,055 71,419,813 - - 74,564,055 71,419,813

Unrestricted grants & contributions 10,189,761 9,250,879 27,906 1,552 10,217,667 9,252,431 Unrestricted investment earnings 283,216 72,161 - - 283,216 72,161 Gain on sale of capital assets 151,883 61,980 - - 151,883 61,980

Transfers 625,000 225,000 - - 625,000 225,000 Total Revenue and Transfers 129,258,753 143,937,676 12,304,606 11,071,162 141,563,359 155,008,838

Program expense: Culture & recreation 117,852,548 114,099,921 - - 117,852,548 114,099,921

Park enterprise fund - - 11,032,412 10,157,125 11,032,412 10,157,125 Transfers - - 625,000 225,000 625,000 225,000

Total Expenses and Transfers 117,852,548 114,099,921 11,657,412 10,382,125 129,509,960 124,482,046

Increase (Decrease) in Net Position $ 11,406,205 $ 29,837,755 $ 647,194 $ 689,037 $ 12,053,399 $ 30,526,792

For governmental activities of the Park and Recreation Board, net position increased by $11,406,205. The increase in Governmental Net Position is primarily due to the donation of The Trailhead building by the Loppet Foundation. The increase in business-type activities of the Park and Recreation Board of $647,194 is primarily due to less capital outlay expenses in 2018.

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117,852,548

129,258,753

100,000,000

120,000,000

140,000,000

Expenses Revenues

Expenses and Program Revenues Governmental Activities

Culture and Recreation

Revenues by Source - Governmental Activities

Operating Grants and Contributions Capital Grants and

2.6% Contributions 17.4%

Unrestricted Grants &

Contributions, Unrestricted Investment Property Taxes

Earnings, Gain on 57.7% Sales of Capital

Assets, and Transfers

8.7%

Charges for Services 13.6%

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11,657,412

12,304,606

11,200,000 11,400,000 11,600,000 11,800,000 12,000,000 12,200,000 12,400,000

Expenses Revenues

Expenses and Program Revenues Business-Type Activities

Park Enterprise Fund

Revenues by Source - Business-Type Activities

Capital Grants & Contributions and

Unrestricted Grants & Contributions,

0.2%

Charges for Services, 99.8%

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Individual Funds Financial Analysis The Minneapolis Park and Recreation Board uses fund accounting to ensure compliance with finance-related legal requirements.

Governmental Funds As of the end of the current fiscal year, the Park and Recreation Board’s governmental funds had reported a combined ending fund balance of $29,386,361. The following is an analysis of the major funds reported in the governmental funds statements.

General Fund The General Fund is the Board’s operating fund that reports activities not reported in other funds. The fund balance of the General Fund decreased by $641,518 from 2017 primarily due to the use of excess fund balance to fund costs associated with Board approved one-time activities. As of the end of the current fiscal year the General Fund reported a fund balance of $5,279,961 of which $11,389 is classified as nonspendable, $241,212 is classified as committed, and $5,027,360 is classified as unassigned and is available for future near-term spending.

General Fund Budgetary Highlights: The final budget for the Park and Recreation Board’s General Fund represents the original budget and any additional supplemental appropriations that may occur during the fiscal year. The 2018 original and final appropriation was $81,111,669.

Museum County-wide Levy This special revenue fund was established to account for the countywide levy for maintenance of a fine art museum. The Park and Recreation Board acts as a pass-through agency for these funds and a fund balance is not established.

Park Grant and Dedicated Revenue This special revenue fund accounts for the activities associated with the purchase and improvement of land used for park purposes and to account for revenue received that is restricted, committed, or assigned for specific purposes. The fund balance of the Park Grant and Dedicated Revenue Fund increased by $1,856,070 from 2017. This increase is primarily due to the State of Minnesota Lottery proceeds and park acquisition funds that are held until needed for land acquisitions or park improvements. As of the end of the current fiscal year, the Park Grant and Dedicated Revenue Fund reported a fund balance of $13,467,629, of which $7,620,944 is classified as restricted, $754,430 is classified as committed and $5,092,255 as assigned.

Tree Preservation and Reforestation This special revenue fund accounts for the activities associated with a special property tax levy approved by the Board to address threats to the urban forest due to Emerald Ash Borer and tree loss due to storms. This is the fifth year of an eight-year program. As of the end of the current fiscal year, the Tree Preservation and Reforestation Fund reported a fund balance of $2,952, which is classified as committed.

Park Dedication Fees This special revenue fund accounts for the fees received in conjunction with construction permits that are issued by the City of Minneapolis and are restricted for use in park development within set geographical boundaries from the location the fee is collected. As of the end of the current fiscal year, the Park Dedication Fees Fund reported a fund balance of $13,552,022, which is classified as restricted.

Permanent Improvement Fund This capital projects fund accounts for the resources used for the acquisition, rehabilitation and/or development of major capital facilities. Revenues for this fund primarily consist of proceeds from bond issues and various federal, state and local grants. The fund balance of the Permanent Improvement Fund increased by $6,338,827 from 2017. This increase is primarily due to the increase in revenues related to the Halls Island development, Waterworks development and NPP20 projects. As of the end of the current fiscal year, the Permanent Improvement Fund reported a fund balance of ($4,905,008).

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Proprietary Funds The Minneapolis Park and Recreation Board operates one enterprise fund and two internal service funds. The funds are reported using the accrual basis of accounting. The following is an analysis of the funds reported in the proprietary funds statements.

Park Operating Fund This enterprise fund accounts for the activities of the Park and Recreation Board’s golf courses, refectories, ice arenas, parking operations, and use & event permitting. Golf fees and park usage fees are reviewed on a yearly basis and changes are recommended to the Park and Recreation Board for approval. In 2018, operating revenues increased from 2017 by $1,746,092 or 16.7%. In 2018, operating expenses of the Park Operating Fund increased from 2017 by $809,421 or 8.4%. In 2018, operating income was $1,787,073, an increase of $936,671 from 2017. The increase in operating income in the Park Operating Fund was primarily due to the increased revenue in golf operations.

Park Internal Services Fund This internal service fund accounts for the rental of equipment and the information technology services provided to other Park and Recreation Board funds. Equipment rental fees and internal department charges are reviewed each year during the budget process and are approved by the Park and Recreation Board. For the current fiscal year ended, the operating income was $93,717 and ending net position was $8,825,115. Net position is comprised of $6,100,250 or 69.1%, which is the net investment in capital assets and $2,724,865 or 30.9%, which is classified as unrestricted. The Park and Recreation Board intends to use the unrestricted portion of the fund for repair and replacement of the operation’s equipment.

Park Self-Insurance Fund This internal service fund accounts for both commercial insurance and self-insurance activities of the Park and Recreation Board. These activities include workers’ compensation, property insurance, general liability, automotive liability and police professional liability. In the current fiscal year ended, the operating income was ($92,663) and ending net position was $2,277,313. An actuarial study completed in 2017 provided an estimate for the 2018 long-term liability for workers’ compensation claims pending. A three year average of the previous three years’ liability as determined by an actuary provides the estimate for the 2018 long-term liability for General liability claims pending.

Capital Asset and Debt Administration

Capital Assets At the end of 2018, the Park and Recreation Board had $381,327,056 invested in a broad range of capital assets, including land, buildings, vehicles, equipment, trails, bridges, golf courses and parking lots.

Major capital asset events during the current fiscal year included but are not limited to the following: Minneapolis Sculpture Garden The Trailhead Building Playground and Wading Pool Improvements

Governmental Business-Type Total

Land 2018 2017 2018 2017 2018 2017

$ 93,794,857 $ 93,484,856 $ 1,206,784 $ 1,206,784 $ 95,001,641 $ 94,691,640 Building and Structures 52,385,700 35,840,579 15,854,557 16,253,610 68,240,257 52,094,189 Infrastructure 36,148,233 38,193,074 281,040 53,053 36,429,273 38,246,127 Public Improvements 97,319,452 101,139,921 5,639,685 4,849,593 102,959,137 105,989,514 Machinery and Equipment 6,414,176 5,813,310 578,009 699,228 6,992,185 6,512,538 Construction in Progress Total

71,221,051 71,192,562 483,512 1,751,793 71,704,563 72,944,355 $ 357,283,469 $ 345,664,302 $ 24,043,587 $ 24,814,061 $ 381,327,056 $ 370,478,363

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Additional information regarding the Park and Recreation Board’s capital assets can be found in the notes to the Financial Statements.

Debt

More information regarding Park and Recreation Board debt can be found in the notes to the Financial Statements.

Economic Factors and 2019 Budget

Employment: The unemployment rate for the City of Minneapolis at the end of 2018, as released by the Minnesota Department of Employment and Economic Development, is 2.5%. This economic indicator is lower than the State of Minnesota (3.2%) and national unemployment rate (3.7%). The City of Minneapolis unemployment rate one year ago in December 2017 was at 2.6%.

2019 Budget: On December 5, 2018, the Park and Recreation Board approved the 2019 budget. The original operating budget was set for $84.3 million. The 2019 certified state aid is about $9.3 million; current law increased 2018 Local Government Aid by $9,493 over the amount received in 2018.

Requests for Information

This financial report is designed to provide a general overview of the Minneapolis Park and Recreation Board finances and to demonstrate the Park and Recreation Board’s accountability for the funds it receives. Questions about this report or requests for additional financial information should be directed to the Finance Director, Minneapolis Park and Recreation Board, 2117 West River Road, Minneapolis, MN 55411, 612-230-6400.

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MINNEAPOLIS PARK AND RECREATION BOARD STATEMENT OF NET POSITION

December 31, 2018

Primary Government Governmental Business -Type Discrete

Activities Activities Total Component Unit Total ASSETS AND DEFERRED OUTFLOWS OF RESOURCES Assets: Cash and Pooled Investments $ 45,835,314 $ 2,151,240 $ 47,986,554 $ 1,135,206 $ 49,121,760 Funds Held for Others - - - 7,746,025 7,746,025 Receivables 6,814,823 1,148,098 7,962,921 183,229 8,146,150 Materials & Supplies Inventories - 56,726 56,726 - 56,726 Prepaid Expense 80,668 - 80,668 6,847 87,515 Internal Balances 39,211 (39,211) - - -Capital Assets:

Non-Depreciable 165,015,908 1,690,296 166,706,204 - 166,706,204 Depreciable (Net) 192,267,561 22,353,291 214,620,852 11,093 214,631,945

Total Assets 410,053,485 27,360,440 437,413,925 9,082,400 446,496,325

Deferred Outflows of Resources: Deferred Outflows - Pensions 14,110,828 667,361 14,778,189 - 14,778,189 Deferred Outflows - Other Post Employment Benefits 102,301 12,675 114,976 - 114,976 Total Deferred Outflows of Resources 14,213,129 680,036 14,893,165 - 14,893,165

Total Assets and Deferred Outflows of Resources $ 424,266,614 $ 28,040,476 $ 452,307,090 $ 9,082,400 $ 461,389,490

LIABILITIES, DEFERRED INFLOWS OF RESOURCES AND NET POSITION Liabilities: Salaries Payable $ 1,895,985 $ 125,508 $ 2,021,493 $ 18,813 $ 2,040,306 Accounts Payable (Net) 5,686,123 241,607 5,927,730 20,759 5,948,489 Funds Held for Others - - - 7,746,025 7,746,025 Non-Current Liabilities

Due Within One Year: Compensated Absences 926,802 81,934 1,008,736 - 1,008,736 Notes Payable 243,191 60,687 303,878 - 303,878 Interest Payable 34,934 - 34,934 - 34,934

Due In More Than One Year: Compensated Absences 3,970,692 191,180 4,161,872 - 4,161,872 Notes Payable 3,442,113 96,827 3,538,940 - 3,538,940

Other Post Employment Benefits 1,252,327 155,167 1,407,494 - 1,407,494 Workers' Compensation Claims Pending 3,218,303 - 3,218,303 - 3,218,303 General Liability Claims Pending 1,591,972 - 1,591,972 - 1,591,972 Net Pension Liability 56,476,704 4,013,079 60,489,783 - 60,489,783 Total Liabilities: 78,739,146 4,965,989 83,705,135 7,785,597 91,490,732

Deferred Inflows of Resources: Deferred Inflows - Service Concession Arrangement 4,672,164 - 4,672,164 - 4,672,164 Deferred Inflows - Pensions 14,873,189 595,061 15,468,250 - 15,468,250 Total Deferred Inflows of Resources 19,545,353 595,061 20,140,414 - 20,140,414

Net Position: Net Investment in Capital Assets 353,598,165 23,886,073 377,484,238 11,093 377,495,331 Restricted

Capital Improvements 33,770 - 33,770 - 33,770 Project and Grant Programs 14,502,819 - 14,502,819 76,218 14,579,037 Special Trust 161,112 - 161,112 - 161,112 Special Reserves 7,459,832 - 7,459,832 - 7,459,832

Unrestricted (49,773,583) (1,406,647) (51,180,230) 1,209,492 (49,970,738) Total Net Position 325,982,115 22,479,426 348,461,541 1,296,803 349,758,344

Total Liabilities, Deferred Inflows of Resources and Net Position $ 424,266,614 $ 28,040,476 $ 452,307,090 $ 9,082,400 $ 461,389,490

The notes to the financial statements are an integral part of this statement.

18

MINNEAPOLIS PARK AND RECREATION BOARD STATEMENT OF ACTIVITIES

For the Year Ended December 31, 2018

Net (Expense) Revenue and Changes in Net Position

Expenses

Program Revenues Operating Capital

Charges for Grants and Grants and Services Contributions Contributions

Primary Government

Governmental Business-Type Activities Activities Total

Discrete Component unit Total

FUNCTION/PROGRAM ACTIVITIES Primary Government

Governmental Activities Culture and Recreation $ 117,852,548 $ 17,641,715 $ 3,318,624 $ 22,484,499 $ (74,407,710) $ - $ (74,407,710) $ - $ (74,407,710)

Business-Type Activities Park Enterprise Fund 11,032,412 12,276,500 - 200 - 1,244,288 1,244,288 - 1,244,288

Total Primary Government $ 128,884,960 $ 29,918,215 $ 3,318,624 $ 22,484,699 $ (74,407,710) $ 1,244,288 $ (73,163,422) $ - $ (73,163,422)

Component unit Discrete Component Unit

Minneapolis Parks Foundation 1,184,626 554,306 - 605,215 - - - (25,105) (25,105)

Total $ 130,069,586 $ 30,472,521 $ 3,318,624 $ 23,089,914 $ (74,407,710) $ 1,244,288 $ (73,163,422) $ (25,105) $ (73,188,527)

General Revenues Taxes: Property taxes and fiscal disparities Property tax increment Museum (county-wide levy) Grants and contributions not restricted to specific programs Unrestricted interest and investment earnings Gain on sale of capital assets Transfers

Total General Revenues

61,537,043 65,006

12,962,006 10,189,761

283,216 151,883 625,000

85,813,915

---

27,906 --

(625,000) (597,094)

61,537,043 65,006

12,962,006 10,217,667

283,216 151,883

-85,216,821

--------

61,537,04365,006

12,962,00610,217,667

283,216151,883

-85,216,821

Change in Net Position 11,406,205 647,194 12,053,399 (25,105) 12,028,294

Net Position - January 1, Restated (Note 2.O.) 314,575,910 21,832,232 336,408,142 1,321,908 337,730,050

Net Position - December 31 $ 325,982,115 $ 22,479,426 $ 348,461,541 $ 1,296,803 $ 349,758,344


19

MINNEAPOLIS PARK AND RECREATION BOARD BALANCE SHEET

GOVERNMENTAL FUNDS December 31, 2018

Museum Park Tree County- Grant and Preservation Park Other

Wide Dedicated and Dedication Permanent Governmental General Levy Revenue Reforestation Fees Improvement Funds Total

ASSETS Cash and

Cash Equivalents $ 8,023,558 $ - $ 13,328,655 $ 872 $ 13,486,988 $ 7,546 $ 2,279,544 $ 37,127,163 Receivables: Accounts 414,571 - 345,570 - - 98,082 12,519 870,742 Taxes -

Current 359,186 93,291 - 10,410 - - - 462,887 Delinquent 303,801 - - 5,745 - - - 309,546

Intergovernmental - - 15,000 - - 4,740,719 - 4,755,719 Accrued Interest - - - 2,251 91,537 - 10,385 104,173 Special Assessments - - - - - - 176,051 176,051 Due From-

Other Funds - - 46,970 30,002 - 356,885 - 433,857 Prepaid Expense 11,389 - - - - - - 11,389

Total Assets $ 9,112,505 $ 93,291 $ 13,736,195 $ 49,280 $ 13,578,525 $ 5,203,232 $ 2,478,499 $ 44,251,527

LIABILITIES, DEFERRED INFLOWS OF RESOURCES AND FUND BALANCES Liabilities: Payables -

Salaries $ 1,754,299 $ - $ 7,950 $ - $ - $ 36,405 $ - $ 1,798,654 Accounts 1,694,754 93,291 117,585 - - 3,176,664 41,604 5,123,898 Intergovernmental 10,756 - - - - - - 10,756

Due To -Other Funds 77,021 - 143,031 - 230 - 269,615 489,897

Capital Advances - - - 40,000 - 4,540,000 - 4,580,000 Total Liabilities 3,536,830 93,291 268,566 40,000 230 7,753,069 311,219 12,003,205

Deferrred Inflows of Resources: Unavailable Revenue 295,714 - - 6,328 25,773 2,355,171 178,975 2,861,961

Fund Balances: Nonspendable: Prepaid Expense 11,389 - - - - - - 11,389 Restricted for: Capital Improvements - - - - - 33,770 - 33,770 Project and Grant Programs - - - - 13,552,522 - 950,297 14,502,819 Special Trust - - 161,112 - - - - 161,112 Special Reserves - - 7,459,832 - - - - 7,459,832 Committed to: Capital Improvements - - - - - 4,800,655 - 4,800,655 Project Programs 241,212 - 554,430 2,952 - - - 798,594 Guaranty Loan - - 200,000 - - - - 200,000 Assigned to: Project Programs - - 3,267,394 - - - - 3,267,394 Special Trust - - - - - - 12,404 12,404 Special Reserves - - 1,579,239 - - - - 1,579,239 Easements - - 23,088 - - - - 23,088 Forestry and Tree Disease - - 222,534 - - - 1,025,604 1,248,138 Unassigned 5,027,360 - - - - (9,739,433) - (4,712,073)

Total Fund Balances 5,279,961 - 13,467,629 2,952 13,552,522 (4,905,008) 1,988,305 29,386,361 Total Liabilities, Deferred Inflows of

Resources and Fund Balances $ 9,112,505 $ 93,291 $ 13,736,195 $ 49,280 $ 13,578,525 $ 5,203,232 $ 2,478,499 $ 44,251,527


20

MINNEAPOLIS PARK AND RECREATION BOARD Reconciliation of the Total Govermental Funds Balance Sheet to the

Government-wide Statement of Net Position - Governmental Activities December 31, 2018

Total Govermental Funds Balances $ 29,386,361

Amounts reported for governmental activitites in the Statement of Net Position are different because

Capital assets used in the governmental activities are not financial resources and therefore are not reported in the funds.

Non-Depreciable Depreciable Accumulated Depreciation Work in Progress

93,794,857 439,256,046

(253,088,735) 71,221,051 351,183,219

Long-term liabilities are not due and payable in the current period and therefore are not reported in the funds.

Accrued Interest Payable Compensated Absences - Short Term Notes Payable - Short Term

(34,934) (882,674) (243,191)

Compensated Absences - Long Term Other Post Employment Benefits - Long Term Notes Payable - Long Term Net Pension Liability - Long Term

(3,867,725) (1,181,112) (3,442,113)

(53,573,064)

Unavailable revenue in governmental funds is susceptible to full accrual on the entity-wide statements. Deferred Outflows of Resources - Pensions Deferred outflows are not available resources and therefore are not reported in the funds.

Deferred Outflows - Pensions Deferred Outflows - Other Post Employment Benefits

2,861,961

13,646,168 96,484

Deferred inflows are not due and payable in the current period and therefore are not reported in the funds.

Deferred Inflows - Pensions Deferred Inflows - Service Concesson Arrangement

Receivables from business-type funds for internal service fund activity. Receivable from Service Concession Arrangement

.

(14,436,459) (4,672,164)

(84,234) 123,164

Internal Service Funds are not reported in the funds statement but are included in the Statement of Net Position govermental activities. 11,102,428

Net Position of Governmental Activities $ 325,982,115


21

MINNEAPOLIS PARK AND RECREATION BOARD STATEMENT OF REVENUES, EXPENDITURES

AND CHANGES IN FUND BALANCES ALL GOVERNMENTAL FUNDS


Museum County-

Wide General Levy

REVENUES Taxes $ 59,920,817 $ 12,962,006 Intergovernmental 10,272,675 7,934Charges for Services

and Sales 9,229,522 -Licenses and Permits 245,152 -Fines and Forfeits 318,764 -Special Assessments 146 -Investment Earnings 68 -Miscellaneous 500,244 -

Park Tree Grant and Preservation Dedicated and Revenue Reforestation

$ - $ 1,734,632 1,992,802 2,465

433,476 -342,223 -

350 -- -- -

1,228,080 -

$

Park Dedication

Fees

--

----

246,878 5,509,186

Permanent Improvement

$ -22,923,274

-----

1,392,952

Other Governmental

Funds Total

$ - $ 74,617,455 300,000 35,499,150

24 9,663,022 - 587,375 - 319,114

347,347 347,493 15,611 262,557

2,708,191 11,338,653

Total Revenues 80,487,388 12,969,940 3,996,931 1,737,097 5,756,064 24,316,226 3,371,173 132,634,819

EXPENDITURES Current:

Culture and Recreation 77,807,421 Capital Outlay -Debt Service:

Principal Retirement 35,670Interest and Fiscal Charges 13,432Total Expenditures 77,856,523

12,969,940 -

--

12,969,940

1,292,558 -

--

1,292,558

1,745,671 -

--

1,745,671

--

---

-25,197,838

1,856,035 33,045

27,086,918

1,114 556,583

--

557,697

93,816,704 25,754,421

1,891,705 46,477

121,509,307

Excess of Revenues Over (Under) Expenditures 2,630,865 - 2,704,373 (8,574) 5,756,064 (2,770,692) 2,813,476 11,125,512

OTHER FINANCING SOURCES (USES) Loans Issued 1,160,000 Transfers In -

Other Funds 25,000Transfers Out -

Other Funds (4,457,383) Total Other Financing Sources (Uses) (3,272,383)

-

-

-

-

-

487,383

(1,335,686)

(848,303)

-

-

-

-

-

-

(446,597)

(446,597)

600,000

8,509,519

-

9,109,519

-

-

(1,965,220)

(1,965,220)

1,760,000

9,021,902

(8,204,886)

2,577,016

Net Change in Fund Balance

FUND BALANCE -JANUARY 1

FUND BALANCE -DECEMBER 31 $

(641,518)

5,921,479

5,279,961

- 1,856,070 (8,574)

- 11,611,559 11,526

$ - $ 13,467,629 $ 2,952 $

5,309,467

8,243,055

13,552,522

6,338,827

(11,243,835)

$ (4,905,008)

848,256 13,702,528

1,140,049 15,683,833

$ 1,988,305 $ 29,386,361


22

MINNEAPOLIS PARK AND RECREATION BOARD Reconciliation of the Statement of Revenues, Expenditures and

Changes in Fund Balances of Governmental Funds to the Government-wide Statement of Activities - Governmental Activities


Net Changes in Fund Balances - Total Governmental Funds $ 13,702,528

Amounts reported for Governmental Activities in the Statement of Activities are different because:

Governmental funds report capital outlays as expenditures. However, in the Statement of Activities the cost of those assets is allocated over their useful lives as depreciation expense. Contributions and donation of capital assets are recorded as revenue in the Statement of Activities.

Expenditures for Capital Assets Current Year Depreciation Contributed Capital Assets

18,062,892 (13,174,706)

1,480,562

Some revenues reported in the statement of activities do not provide current financial resources and therefore are not reported as revenues in governmental funds.

Change in Unavailable Revenue (6,293,350)

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.

Change in Accrued Interest Payable Change in Compensated Absences Change in Other Post Employment Benefits, including related deferred inflows Change in Note Payable Change in Net Pension Liability, including related deferred inflows and outflows of resources

(28,267) (237,262)

82,890 131,705

(2,617,675)

Transfers from business-type funds for internal service fund activities. (98)

Internal service funds are used by management to charge the costs of certain activities to individual funds. The net revenue (expense) of the internal service funds is reported with governmental activities. 296,986

Change in net position of governmental activities $ 11,406,205


23

MINNEAPOLIS PARK AND RECREATION BOARD STATEMENT OF NET POSITION

PROPRIETARY FUNDS December 31, 2018

Governmental Business-Type Activities -

Activities - Internal Enterprise Fund Service Funds

ASSETS AND DEFERRED OUTFLOWS OF RESOURCES Assets: Cash and Cash Equivalents $ 2,151,240 $ 8,612,894 Cash with Escrow Agent - 95,257 Receivables - Accounts 421,029 12,540 Intergovernmental 727,069 -Due From -

Other Funds 56,905 180 Capital Advances 800,000 4,760,350 Materials & Supplies Inventory 56,726 -Prepaid Expense - 69,278

Total Current Assets 4,212,969 13,550,499 Non-Current Assets

Net Capital Assets 24,043,587 6,100,250 Total Assets 28,256,556 19,650,749

Deferred Outflows of Resources: Deferred Outflows - Pensions 667,361 464,660 Deferred Outflows - OPEB 12,675 5,817

Total Deferred Outflows of Resources 680,036 470,477

Total Assets and Deferred Outflows of Resources $ 28,936,592 $ 20,121,226

LIABILITIES, DEFERRED INFLOWS OF RESOURCES AND NET POSITION Current Liabilities: Payables -

Salaries $ 125,508 $ 97,331 Accounts 239,082 547,074 Intergovernmental Payable 2,525 4,392 Compensated Absences Payable 81,934 44,129 Notes Payable - Current 60,687 -

Due To -Other Funds - 1,045

Advance From Other Funds 140,050 -Total Current Liabilities 649,786 693,971

Long-Term Liabilities: Notes Payable - Long Term 96,827 -Advance From Other Funds 840,300 -Workers' Compensation Claims Pending - 3,218,303 General Liability Claims Pending - 1,591,972 Compensated Absences Payable 191,180 102,967 Other Post Employment Benefits Payable 155,167 71,215 Net Pension Liability 4,013,079 2,903,640 Total Long-Term Liabilities 5,296,553 7,888,097

Total Liabilities 5,946,339 8,582,068

Deferred Inflows of Resources: Deferred Inflows - Pensions 595,061 436,730

Net Position: Net Investment in Capital Assets 23,886,073 6,100,250 Unrestricted (1,490,881) 5,002,178

Total Net Position 22,395,192 11,102,428

Total Liabilities, Deferred Inflows of Resources and Net Position $ 28,936,592 $ 20,121,226


24

MINNEAPOLIS PARK AND RECREATION BOARD Reconciliation of the Proprietary Funds - Business-Type Activities Statement of Net Position to the

Government-wide Statement of Net Position - Business-Type Activities December 31, 2018

Net Position - Enterprise Fund $ 22,395,192

Some amounts reported for business-type activities in the statement of net position are different because of certain internal service fund assets and liabilities that are included with business-type activities. 84,234

Net Position of Business-Type Activities $ 22,479,426


25

MINNEAPOLIS PARK AND RECREATION BOARD STATEMENT OF REVENUES, EXPENSES

AND CHANGES IN NET POSITION PROPRIETARY FUNDS




OPERATING REVENUES Billings to Departments $ - $ 9,780,409 Charges For Services and Sales 9,476,531 -Rents 2,755,223 -

Total Operating Revenues 12,231,754 9,780,409

OPERATING EXPENSES Personnel Services 3,854,521 2,064,398 Contractual Services 2,665,940 3,113,748 Materials and Supplies 1,345,552 1,880,934 Depreciation on Acquired Property 1,001,894 1,600,180 Benefits 1,576,774 1,120,095

Total Operating Expenses 10,444,681 9,779,355

Operating Income (Loss) 1,787,073 1,054

NON-OPERATING REVENUES (EXPENSES) Gain (Loss) on Disposal of Capital Assets 1,045 151,883 Sale of Scrap 6,500 45,401 Damages/Losses Recovered - 204,175 Other Non-Operating Revenues 65,307 24,737 City of Minneapolis - Debt Service (522,038) -Interest Expense (10,031) -Other Non-Operating Expenses (55,760) -

Total Non-Operating Revenues (Expenses) (514,977) 426,196

Income (Loss) Before Contributions and Transfers 1,272,096 427,250

Capital Contributions - 61,752 Transfers Out -

Other Funds (625,000) (192,016)

CHANGE IN NET POSITION 647,096 296,986

NET POSITION - JANUARY 1, Restated (Note 2.O.) 21,748,096 10,805,442

NET POSITION - DECEMBER 31 $ 22,395,192 $ 11,102,428


26

Change in Net Position - Enterprise Fund $ 647,096

Some amounts reported for business-type activities in the Statement of Activities are different because the net revenue (expense) of certain Internal Service Funds is reported with business-type activities.

Change in Net Position of Business-Type Activities


98

$ 647,194

MINNEAPOLIS PARK AND RECREATION BOARD Reconciliation of the Statement of Revenues, Expenses and

Changes in Net Position of Proprietary Funds - Business-Type Activities to the Government-wide Statement of Activities - Business-Type Activities


27

MINNEAPOLIS PARK AND RECREATION BOARD STATEMENT OF CASH FLOWS

PROPRIETARY FUNDS For the Year Ended December 31, 2018



Cash Flows from Operating Activities: Cash Received from Interfund Services Provided $ - $ 9,796,159 Cash Received from Customers 12,458,753 4,761 Cash Paid to Suppliers for Goods and Services (4,102,444) (4,139,912) Cash Paid to Employees for Services (5,152,610) (2,974,470) Other Non-Operating Revenues 65,307 204,984

Net cash Provided by (Used in) Operating Activities 3,269,006 2,891,522

Cash Flows from Non-Capital Financing Activities: Repayment of Advances Made by Other Funds - 7,270,050 Proceeds from Sale of Scrap 6,500 45,401 Other Payments Received - 23,928 City of Minneapolis - Debt Service (522,038) -Transfer to Other Funds (25,000) (192,016) Payment of Advances Made to Other Funds - (3,040,000)

Net Cash Provided by (Used in) Non-Capital Financing Activities (540,538) 4,107,363

Cash Flows from Capital and Related Financing Activities: Proceeds from Sale of Capital Assets 1,045 151,883 Principal and Interest Payments (67,799) -Acquisition of Property, Plant and Equipment (231,420) (2,239,846) Repayment of Advances Made by Other Funds (140,050) -Transfers To Other Funds (600,000) -

Net Cash Provided by (Used for) Capital and Related Financing Activities (1,038,224) (2,087,963)

Net Increase (Decrease) in Cash and Cash Equivalents 1,690,244 4,910,922

Cash and Cash Equivalents - January 1 460,996 3,797,229

Cash and Cash Equivalents - December 31 $ 2,151,240 $ 8,708,151

Reconciliation of Operating Income (Loss) to Net Cash Provided by (Used for) Operating Activites

Operating Income (Loss) $ 1,787,073 $ 1,054

Adjustments to Reconcile Operating Income to Net Cash Provided by Operating Activities:

Depreciation on Acquired Property 1,001,894 1,600,180 (Increase) Decrease in Accounts Receivable 286,969 19,466 (Increase) Decrease in Due from Other Funds (56,905) (180) (Increase) Decrease in Materials and Supplies Inventory (11,243) -(Increase) Decrease in Prepaid Expense - (4,906) (Increase) Decrease in Deferred Outflows of Resources - Pensions 344,001 270,060 (Increase) Decrease in Deferred Outflows of Resources - OPEB (12,675) (5,817) Increase (Decrease) in Salaries Payable 42,689 39,725 Increase (Decrease) in Accounts Payable (24,444) 186,891 Increase (Decrease) in Intergovernmental Payable 495 3,618 Increase (Decrease) in Due to Other Funds (3,065) 1,045 Increase (Decrease) in Workers' Compensation Claims Pending - 483,819 Increase (Decrease) in General Liability Claims Pending - 185,348 Increase (Decrease) in Other Post Employment Benefits Payable 1,786 821 Increase (Decrease) in Compensated Absences Payable 27,302 3,091 Increase (Decrease) in Deferred Inflows of Resources - Pensions 75,761 59,476 Increase (Decrease) in Net Pension Liability (200,179) (157,153) Other Non-Operating Expenses (55,760) -Other Non-Operating Revenues 65,307 204,984

Total Adjustments 1,481,933 2,890,468 Net Cash Provided by (Used in) Operating Activities $ 3,269,006 $ 2,891,522

Non-Cash, Capital and Related Financing Activities Capital Contributions $ - $ 61,752 Capital Asset Purchased on Account 38,850


28

MINNEAPOLIS PARK AND RECREATION BOARD NOTES TO THE FINANCIAL STATEMENTS

December 31, 2018

Note 1 - Form of Government The Minneapolis Park and Recreation Board operates pursuant to Chapter 16 of the City Charter of the City of Minneapolis. In addition, various sections of the state statutes and special legislation pertain to the operation of the Minneapolis Park and Recreation Board. Nine members elected by the voters govern the Board. The Board annually elects from its own members a President and Vice President and appoints a Secretary who is not a member of the Board.

Note 2 - Summary of Significant Accounting Policies A) Reporting Entity The Minneapolis Park and Recreation Board is considered to be a component unit of the City of Minneapolis according to the criteria for defining the reporting entity, as adopted by the Governmental Accounting Standard Board's (GASB) Statement 61, The Financial Reporting Entity: omnibus and amendment of GASB Statements No. 14 and No. 34. Specific criteria which determined the Park and Recreation Board to be a component unit are: 1) the City approves all annual budgets and tax levies of the Park and Recreation Board, 2) the City determines any allocations to be made to the Park and Recreation Board of local government aid received by the City from the State of Minnesota and 3) long-term debt issued for Park and Recreation Board projects is secured by the full faith and credit of the City. In addition, the nature of the Park and Recreation Board's activities, in relation to activities of the City, are such that exclusion from the City's financial statements would cause such statements to be incomplete.

Discretely Presented Component Unit The Minneapolis Parks Foundation was established in 2013 and is an independent donor-supported nonprofit dedicated to supporting the continually evolving park system. Minneapolis Parks Foundation is the primary philanthropic partner to the Minneapolis Park and Recreation Board, which stewards the city’s 6,790 acres of parkland and water. Based on its relationship with the Minneapolis Park and Recreation Board, it would be misleading to exclude the Minneapolis Parks Foundation as a component unit. It is this criterion that results in the Minneapolis Parks Foundation being reported as a discretely presented component unit. Complete financial statements for the Minneapolis Parks Foundation can be obtained from The Minneapolis Parks Foundation, 4800 Minnehaha Avenue South, Minneapolis, MN 55417.

Information on joint venture and related organizations are described in Note 14.

The accounting policies of the Minneapolis Park and Recreation Board conform to Generally Accepted Accounting Principles. The following is a summary of the significant policies.

B) Presentation of Financial Statements Government-wide Financial Statements. The Statement of Net Position and the Statement of Activities display information about the Park and Recreation Board as a whole. These statements distinguish between activities that are governmental and those that are considered business-type activities.

The government-wide statements are prepared using the economic resources measurement focus and the full accrual basis of accounting. This is the same approach used in the preparation of proprietary fund financial statements but differs from the manner in which governmental fund financial statements are prepared. Therefore, governmental fund financial statements include reconciliations with brief explanations to better identify the relationship between the government-wide statements and the statements for governmental funds. Generally, interfund activity has been eliminated from the government-wide financial statements to minimize the double counting of internal activities, except in those instances where the elimination of activities would distort the direct costs and program revenues.

The government-wide Statement of Activities presents a comparison between expenses and program revenues for business-type activities and governmental activities. Program revenues include charges paid by the recipients of the goods or services and grants and contributions that are restricted to meeting the operational or capital requirements of a particular program. Revenues, which are not classified as program revenues, including taxes, are presented as general revenues. The comparison of program revenues and expenses identifies the extent to which each program or business segment is self-financing or draws from the general revenues of the Park and Recreation Board.

29

Note 2 - Summary of Significant Accounting Policies B) Presentation of Financial Statements (Continued) Net position should be reported as restricted when constraints placed on the use of net position are either externally imposed by creditors, grantors, contributors, or laws or regulations of other governments or imposed by law through constitutional provisions or enabling legislation. When both restricted and unrestricted resources are available for use, it is the Park and Recreation Board’s policy to use restricted resources first, then unrestricted resources as they are needed.

Fund Financial Statements. The accounts of the Park and Recreation Board are organized and operated on the basis of funds. A fund is an independent fiscal and accounting entity with a self-balancing set of accounts. Fund accounting segregates funds according to their intended purpose and is used to aid management in demonstrating compliance with finance-related legal and contractual provisions. The minimum number of funds is maintained consistent with legal and managerial requirements. The fund financial statements provide information about the Park and Recreation Board’s funds. Funds are classified into two categories - Governmental and Proprietary. Each category is divided into separate fund types. The emphasis of fund financial statements is on major governmental and enterprise funds, each displayed in a separate column. All remaining governmental funds are separately aggregated and reported as non-major 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. Non-operating revenues, such as subsidies and investment earnings, result from non-exchange transactions or ancillary activities.

Governmental Funds. The accounting and financial reporting treatment applied to a fund is determined by its measurement focus. All governmental fund types are accounted for using a flow of current financial resources measurement focus. With this measurement focus, only current assets and current liabilities are generally included on the balance sheet. Operating statements of these funds present increases and decreases in net current assets and deferred outflows of resources.

The modified accrual basis of accounting is used for all governmental funds. Under this method of accounting, revenues are recognized when they become measurable and available as fund balance. Revenues are considered to be available when they are collectible within the current period or soon enough thereafter to pay liabilities of the current period. For this purpose, the Park and Recreation Board considers revenues to be available if they are collected within 60 days of the end of the current fiscal period. Major revenues that are determined to be susceptible to accrual include property taxes, special assessments, grants-in-aid earned and other intergovernmental revenues, rentals, intrafund charges and interest on investments. Interest on special assessments receivable is recognized when collected. Expenditures are generally recognized under the modified accrual basis of accounting when the related fund liability is incurred. Exceptions to this general rule include: (1) accumulated unpaid vacation, sick pay, severance and compensatory time pay; and (2) principal and interest on long-term debt which is recognized when due. Proceeds from long-term debt and acquisitions under capital leases are reported as other financing sources.

The Park and Recreation Board reports the following major governmental funds: General Fund

The General Fund is the general operating fund of the Park and Recreation Board. It is used to account for all financial resources except those accounted for in another fund. For the Park and Recreation Board, the General Fund includes such activities as recreation, public safety, maintenance and general government administration.

Special Revenue Fund – Museum County-Wide Levy This fund was established to account for the county-wide levy for maintenance of a fine arts museum.

Special Revenue Fund – Park Grant and Dedicated Revenue This fund is used to account for assets held for the purchase and improvement of land used for park purposes and to account for revenue received that is earmarked for a specific purpose.

Special Revenue Fund – Tree Preservation and Reforestation This fund is used to account for a special tax levy to address threats to the urban forest due to Emerald Ash Borer and tree loss due to storms.

Special Revenue Fund – Park Dedication Fees This fund is used to account for fees charged in conjunction with construction permits.

Capital Project Fund – Permanent Improvement This fund is used to account for capital acquisition, construction and improvement projects primarily financed by proceeds from bond issues and various federal, state and local grants.

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Note 2 - Summary of Significant Accounting Policies (Continued) Proprietary Funds. All proprietary funds are accounted for on a flow of economic resources measurement focus. With this measurement focus, all assets and all liabilities associated with the operation of these funds are included on the Statement of Net Position. Net position is segregated into net investment in capital assets and unrestricted. The Park and Recreation Board Proprietary Funds use the full accrual basis of accounting, under which revenues are recognized when earned, and expenses are recorded as liabilities when they are incurred.

Enterprise Funds. Enterprise funds are used to account for operations: (a) that are financed and operated in a manner similar to private business enterprises—where the intent of the governing body is that the costs (expenses, including depreciation) of providing goods or services to the general public on a continuing basis be financed or recovered primarily through user charges; or (b) where the governing body has decided that periodic determination of revenues earned, expenses incurred, and/or net income is appropriate for capital maintenance, public policy, management control, accountability, or other purposes.

The Park and Recreation Board reports the following major enterprise fund: Park Operating Fund

This fund is used to account for the operations of golf courses, refectories, ice arenas, sports complexes and similar recreational activities.

Additionally, the Park and Recreation Board reports the following fund type: Internal Service Funds

Internal service funds are used to account for the financing of goods or services provided by one department or agency to other departments or agencies of the Park and Recreation Board, or to other governments, on a cost-reimbursement basis.

C) Deposits and Investments The City of Minneapolis serves as custodian for deposits of the Park and Recreation Board’s funds. The City’s cash and cash equivalents are considered to be cash on hand, demand deposits and investments with original maturities of three months or less from the date of purchase. In addition, the Park and Recreation Board considers cash with escrow agent to be cash and cash equivalents. Except for the Minneapolis Parks and the Park Dedication Fees Special Revenue Funds, the minimal amount of interest earned on these deposits is retained by the City during the year for debt service requirements. The types of investment vehicles, their valuation and risk are described in the notes of the City of Minneapolis Comprehensive Annual Financial Report.

The Park and Recreation Board invests funds in the City of Minneapolis investment pool. The fair value of the investment is the fair value per share of the underlying portfolio. The Park and Recreation Board invests in the pool for purpose of joint investment with the City to enhance investment earnings. There are no redemption limitations.

The cash held by the Minneapolis Parks Foundation discrete component is defined as highly liquid short-term investments with a maturity date of acquisition of three months or less. Cash reported as Funds Held for others consists primarily of the RiverFirst campaign. A corresponding liability is recorded to show the amount will be gifted to the Park and Recreation Board at a later date.

D) Inventories of Materials and Supplies Inventories are priced at cost determined on the moving average method. The cost of inventory is recorded as an expense at the time it is sold. Physical counts are taken at year-end.

E) Prepaid Expense Certain payments to vendors reflect costs applicable to future accounting periods and are recorded as prepaid expense in both government-wide and fund financial statements.

F) Capital Assets Governmental activities and Business-type activities capital assets of the Park and Recreation Board are recorded at historical or estimated historical cost. Capital assets are defined as assets with an individual cost of more than $5,000. Depreciation is provided using the straight-line method over the estimated life of the asset. As of 2008, the Park and Recreation Board is no longer using salvage values and will depreciate assets to zero. Contributed/donated capital assets are recorded at acquisition value.

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Note 2 - Summary of Significant Accounting Policies F) Capital Assets Continued) Estimated useful lives for determining annual depreciation are as follows:

Infrastructure 15 to 100 years Structures and Improvements 25 to 50 years Equipment 5 to 15 years Public Improvements 20 to 40 years

Changes in capital assets are discussed further in Note 4.

G) Long-Term Liabilities The Park and Recreation Board’s long-term liabilities are reported on the government-wide statements and in the proprietary fund statements. Liabilities recorded on these statements include compensated absences payable, mortgage and promissory notes payable, post employment benefits payable, workers’ compensation claims pending, general liability claims pending, and net pension liability. These liabilities are discussed further in Notes 5, 9, 10 and 12. The Park and Recreation Board typically liquidates the liability for compensated absences, other post employment benefits, and net pension liability from the fund where the employee’s salary was originally charged.

H) Deferred Inflow/Outflow of Resources In addition to assets, the statement of net position reports a separate section for deferred outflows of resources. This separate financial statement element, deferred outflows of resources, represents a consumption of net position that applies to future periods and so will not be recognized as an outflow of resources (expense/expenditure) until then. Currently, the Park and Recreation Board has two types of deferred outflows that qualify for reporting in this category, deferred pension and deferred OPEB outflows. These outflows arise only under the full accrual basis of accounting and consist of pension plan contributions paid subsequent to the measurement date, the differences between expected and actual economic experience, changes in actuarial assumptions, and pension plan changes in proportionate share and accordingly, are reported only in the statements of net position.

In addition to liabilities, the statement of net position reports a separate section for deferred inflows of resources. This separate financial statement element, deferred inflows of resources, represents an acquisition of net position that applies to future periods and so will not be recognized as an inflow of resources (revenue) until that time. Currently, the Park and Recreation Board has two types of deferred inflows that qualify for reporting in this category. Unavailable revenue arises only under the modified accrual basis of accounting and accordingly, is reported only in the governmental funds balance sheet. The governmental funds report unavailable revenue from property taxes, special assessments, intergovernmental revenue, and investment earnings, for amounts that are not considered to be available to liquidate liabilities of the current period. These amounts are deferred and recognized as an inflow of resources in the period that the amounts become available. The Park and Recreation Board also has deferred pension inflows and deferred inflows resulting from Service Concession Arrangements. The deferred pension inflows arise only under the full accrual basis of accounting and consist of differences between expected and actual pension plan economic experience, differences between projected and actual investment earnings, changes in actuarial assumptions, and pension plan changes in proportionate share. The deferred inflows resulting from Service Concession Arrangements result from the recognition of the asset and the present value of future lump sum annual payments. These deferred inflows are reported only in the statements of net position.

I) Pension Plan For purposes of measuring the net pension liability, deferred outflows/inflows of resources, and pension expense, information about the fiduciary net position of the Public Employees Retirement Association (PERA) and additions to/deductions from PERA’s fiduciary net position have been determined on a different basis than reported by PERA. The Park Board has reported its long-term projected contribution effort to the pension plan rather than the allocated amounts based on current year contributions of all contributing members. PERA’s fiscal year end is June 30. For this purpose, plan contributions are recognized as of employer payroll paid dates and benefit payments and refunds are recognized when due and payable in accordance with the benefit terms. Plan investments are reported at fair value.

J) Interfund Transactions Interfund transactions are reflected as services provided, loans, reimbursements, or transfers. Reimbursements occur when a fund incurs costs that are eventually repaid through charges to the benefiting fund. All other interfund transactions are treated as transfers. Transfers between governmental funds are subject to elimination as part of the reconciliation to the government-wide presentation. Any residual balances between governmental activities and business-type activities are reported in the government-wide financial statements as internal balances.

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Note 2 - Summary of Significant Accounting Policies (Continued) K) Fund Balance

Fund balance is classified as nonspendable, restricted, committed, assigned and/or unassigned based primarily on the extent to which the Park and Recreation Board is bound to observe constraints imposed upon the use of the resources in the governmental funds. Fund balances are classified as:

Nonspendable – amounts that cannot be spent because they are not in spendable form or are legally or contractually required to be maintained intact. The “not in spendable form” criterion includes items not expected to be converted to cash (example: noncurrent loans, inventories and/or prepaid items).

Restricted – amounts to be used for specific purposes as determined by enabling legislation or imposed by grantors or debt covenants. Restricted fund balance is used before unrestricted fund balance when an expenditure is incurred for which both restricted and unrestricted fund balance is available.

Committed – amounts to be used for specific purposes as determined by formal board action. Committed fund balances are used before assigned or unassigned fund balances when an eligible expenditure is incurred and cannot be used for any other purpose unless formal board action is taken to remove or change the specified use.

Assigned – amounts intended to be used for certain purposes as determined by the board or by delegation to the Superintendent. Assigned fund balance is used first when an expenditure is incurred for which both assigned and unassigned fund balance is available.

Unassigned – amount remaining in the General Fund that has not been restricted, committed, or assigned. In the other governmental funds, the unassigned classification is used only to report a deficit balance resulting from overspending for specific purposes for which amounts had been restricted, committed or assigned.

The Park and Recreation Board applies restricted resources first when expenditures are incurred for purposes which either restricted or unrestricted (committed, assigned and unassigned) amounts are available. Similarly, within unrestricted fund balance, committed amounts are reduced first followed by assigned and then unassigned amounts when expenditures are incurred for purposes for which amounts in any of the unrestricted fund balance classifications could be used.

The constraints placed on fund balance for the major governmental funds and all other governmental funds are as follows:

Fund Balance Nonspendable: Prepaid Expense $

General

11,389

Park Grant and Dedicated

Revenue

$ -

Tree Preservation and

Reforestation

$ - $

Park Dedication

Fees

-

Permanent Improvement

$ -

Other Governmental

Funds Total

$ - $ 11,389

Restricted for: Capital Improvements Project and Grant Programs Special Trust Special Reserves Total Restricted

-----

--

161,112 7,459,832 7,620,944

-----

-13,552,522

--

13,552,522

33,770 ---

33,770

-950,297

--

950,297

33,770 14,502,819

161,112 7,459,832

22,157,533

Committed to: Capital Improvements Project Programs Guaranty Loan Total Committed

-241,212

-241,212

-554,430 200,000 754,430

-2,952

-2,952

----

4,800,655 --

4,800,655

----

4,800,655 798,594 200,000

5,799,249

Assigned to: Project Programs Special Trust Special Reserves Easements Forestry and Tree Disease Total Assigned

------

3,267,394 -

1,579,239 23,088

222,534 5,092,255

------

------

------

-12,404

--

1,025,604 1,038,008

3,267,394 12,404

1,579,239 23,088

1,248,138 6,130,263

Unassigned 5,027,360 - - - (9,739,433) - (4,712,073)

Total fund balances $ 5,279,961 $ 13,467,629 $ 2,952 $ 13,552,522 $ (4,905,008) $ 1,988,305 $ 29,386,361

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Note 2 - Summary of Significant Accounting Policies (Continued) L) Budgets Annual Budgets are adopted on a basis consistent with generally accepted accounting principles for the general and special revenue funds.

The 2017 process for the 2018 budget involved the following:

May The 2018 budget process began with the Minneapolis Park and Recreation Board Budget retreat with the Committee of the Whole. The Minneapolis Park and Recreation Board was presented with the projections for the 2018 budget.

July-September Operating Budget Development – Departments prepared department operating budget requests; “Current Service Level Budgets” reflected current year costs of providing the same level of service as provided in the prior year, and proposals which described policy and organizational changes with financial implications.

August-September The Board of Estimate and Taxation set the maximum property tax levy for the City, Municipal Building Commission, Public Housing Authority and the Park and Recreation Board by September 30, as required by state law.

September-October The Superintendent held departmental hearings to review operating budgets. The Superintendent prepared and submitted a budget that includes a recommendation on annual property tax levy amounts to the Board of Commissioners at the second meeting in October.

November-December “Truth in Taxation” property tax statements mailed by the County to property owners indicating the maximum amount of property taxes that the owner will be required to pay.

December “Truth in Taxation” public hearings held. The Minneapolis Park and Recreation Board of Commissioners adopted a final budget and tax levy.

M) 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 deferred outflows of resources, and liabilities and deferred inflows of resources, 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.

N) Change in Accounting Principle During the year ended December 31, 2018, the Park and Recreation Board adopted accounting guidance by implementing specific provisions of Governmental Accounting Standards Board (GASB) Statement No. 75 as it relates to the calculation of the Park and Recreation Board’s proportionate share of OPEB liability and related deferred outflows of resources and OPEB expense.

The resulting recalculation altered the beginning balance of OPEB liability and deferred outflows of resources. This resulted in the restatement of the Park and Recreation Board’s January 1, 2018 net position as noted in Section O of Note 2.

O) Restatement of Net Position Due to the change in accounting principle with the implementation of accounting and financial reporting for OPEB that is provided to the employees of state and local governmental employers, GASB Statement No. 75 for OPEB plans establishes standards for recognizing and measuring liabilities, deferred outflows of resources, deferred inflows of resources, and expense/expenditures. The Park and Recreation Board restated the beginning net position of the governmental and business-type activities.

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Note 2 - Summary of Significant Accounting Policies O) Restatement of Net Position (Continued)

Total Governmental Business-Type Park Board Activities Activities

Net Position, January 1, 2018, as previously reported $ 333,886,514 $ 312,332,274 $ 21,554,240 Change in Accounting Principle 2,521,628 2,243,636 277,992 Net Position - January 1, 2018, Restated $ 336,408,142 $ 314,575,910 $ 21,832,232

Note 3 - Receivables Receivables at year-end for the Park and Recreation Board’s major individual governmental, other governmental funds in aggregate, internal service funds and enterprise funds are as follows:

Museum Park Tree Total County- Grant and Preservation Park Total Business-

Wide Dedicated and Dedication Permanent Other Internal Governmental Type General Levy Revenue Reforestation Fees Improvement Governmental Service Activities Activities

Trade Accounts $ 414,571 $ - $ 345,570 $ - $ - $ 98,082 $ 12,519 $ 12,540 $ 883,282 $ 421,029 Property Tax 662,987 93,291 - 16,155 - - - - 772,433 -Intergovernmental - - 15,000 - - 4,740,719 - - 4,755,719 727,069 Accrued Interest - - - 2,251 91,537 - 10,385 - 104,173 -Special Assessments - - - - - - 176,051 - 176,051 - Gross Receivables $ 1,077,558 $ 93,291 $ 360,570 $ 18,406 $ 91,537 $ 4,838,801 $ 198,955 $ 12,540 $ 6,691,658 $ 1,148,098

Nicollet Island Inn In 1987, the Park and Recreation Board leased property on Nicollet Island to IsleWest Associates, a Minnesota general partnership. The term of the lease is 75 years and includes the operations, maintenance and improvements to the Nicollet Island Inn. IsleWest Associates tenant’s interest in the lease was assigned to Island Sash & Door Co., LLC in 2005. In 2012, the Park and Recreation Board approved an amendment to the lease with Island Sash & Door Co., LLC. Island Sash & Door Co., LLC is required to pay three percent of the gross sales as rent. Minnesota Statutes provide that while the land and building shell is still owned by the Park and Recreation Board and is not taxable, the leasehold improvements and tangible personal property are subject to all ad valorem property taxes. Any rent is subject to interest charges. The total amount the Park and Recreation Board received in 2018 for rent was $80,719.

Park and Recreation Board Headquarters In 2015, the Park and Recreation Board leased a portion of the headquarters property located at 2117 West River Road to Surdyk’s Flights. The initial term of the Surdyk’s Flights’ lease is for 4 years with the option to renew for one additional four-year period. The total amount the Park and Recreation Board received in 2018 for rent from Surdyk’s Flights was $43,010.

Unavailable Revenue At the end of 2018, the Permanent Improvement Capital Projects Fund reported $2,355,171 in unavailable revenue. Revenues are considered unavailable when they are not collectible within the current period in order to pay liabilities of the current period. The sources of revenue that make up this balance are as follows:

Tree Preservation Park

and Dedication Permanent Other General Reforestation Fees Improvement Governmental Total

Property Taxes $ 295,714 $ 5,694 $ - $ - $ - $ 301,408 Special Assessments - - - - 176,051 176,051 Grants:

State - - - 2,000,278 - 2,000,278 Other Local Governments - - - 264,893 - 264,893 Contributions - - - 90,000 - 90,000 Interest - 634 25,773 - 2,924 29,331

$ 295,714 $ 6,328 $ 25,773 $ 2,355,171 $ 178,975 $ 2,861,961

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Note 4 - Changes in Capital Assets Capital asset activity for the year ended December 31, 2018 was as follows:

Balance Balance Governmental Activities 1/1/18 Additions Deletions 12/31/18 Capital assets not being depreciated Land $ 93,484,856 $ 310,001 $ - $ 93,794,857 Construction in Progress 71,192,562 26,657,485 (26,628,996) 71,221,051 Total capital assets not being depreciated 164,677,418 26,967,486 (26,628,996) 165,015,908

Capital assets being depreciated Buildings and Structures 68,821,407 17,995,098 - 86,816,505 Infrastructure 124,978,061 176,230 - 125,154,291 Public Improvements 219,258,948 5,582,634 - 224,841,582 Equipment 18,436,648 2,301,601 (1,152,394) 19,585,855 Total capital assets being depreciated 431,495,064 26,055,563 (1,152,394) 456,398,233

Less accumulated depreciation for: Buildings and Structures (32,980,828) (1,449,977) - (34,430,805) Infrastructure (86,784,987) (2,221,071) - (89,006,058) Public Improvements (118,119,027) (9,403,103) - (127,522,130) Equipment (12,623,338) (1,700,735) 1,152,394 (13,171,679) Total accumulated depreciation (250,508,180) (14,774,886) 1,152,394 (264,130,672)

Total capital assets being depreciated net 180,986,884 11,280,677 - 192,267,561

Governmental activities capital assets, net $ 345,664,302 $ 38,248,163 $ (26,628,996) $ 357,283,469

Some construction in progress amounts were expensed in the current year.

Balance Balance Business - Type Activities 1/1/18 Additions Deletions 12/31/18 Capital assets not being depreciated Land $ 1,206,784 $ - $ - $ 1,206,784 Construction in Progress 1,751,793 165,319 (1,433,600) 483,512 Total capital assets not being depreciated 2,958,577 165,319 (1,433,600) 1,690,296

Capital assets, being depreciated Buildings and Structures 24,412,680 63,835 - 24,476,515 Infrastructure 98,638 237,445 - 336,083 Public Improvements 10,566,412 1,143,187 - 11,709,599 Equipment 2,758,787 55,234 (11,935) 2,802,086 Total capital assets, being depreciated 37,836,517 1,499,701 (11,935) 39,324,283

Less accumulated depreciation for: Buildings and Structures (8,159,070) (462,888) - (8,621,958) Infrastructure (45,585) (9,458) - (55,043) Public Improvements (5,716,819) (353,095) - (6,069,914) Equipment (2,059,559) (176,453) 11,935 (2,224,077) Total accumulated depreciation (15,981,033) (1,001,894) 11,935 (16,970,992)

Total capital assets, being depreciated net 21,855,484 497,807 - 22,353,291

Business-type activities capital assets, net $ 24,814,061 $ 663,126 $ (1,433,600) $ 24,043,587

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Note 4 - Changes in Capital Assets (Continued)

Depreciation expense was charged to governmental functions as follows: Culture and Recreation

Depreciation on capital assets held in the internal service fund of the Park and Recreation Board is charged to the various functions based on their usage of assets.

Total depreciation expense – governmental activities Depreciation expense was charged to the business-type function as follows: Park Operating

$ 13,174,706

1,600,180 $ 14,774,886

$ 1,001,894

Construction in Progress Construction in progress for the governmental activities represents work being performed on the Park and Recreation Board’s permanent improvement projects related to athletic fields, park buildings, sites and totlots. Construction in progress for the business-type activities represents work being performed on the Park and Recreation Board’s permanent improvement projects related to golf courses, ice arenas and other enterprise fund infrastructure.

Note 5 - Changes in Long-Term Debt A) General Obligation Bonds Proceeds from the sale of general obligation bonds for Park and Recreation Board projects are recognized in the City of Minneapolis Capital Project Funds. The bonds are accounted for in the entity-wide statements of the City of Minneapolis.

B) Mortgage Note In 2006, the Park and Recreation Board entered into a loan agreement for the amount of $710,000 with Wells Fargo Brokerage Services, LLC for the purchase of an ice arena facility and land located at 1306 Central Avenue Northeast. The interest rate was 4.99%. The property was renovated and became the Park and Recreation Board’s Northeast Ice Arena. This facility is intended to be self-supporting with a portion of the net income generated being allocated to the debt service payments. This is recorded in business-type activities. Listed below is the annual debt service requirement to maturity for the mortgage note.

Year Principal Interest Total 2019 $ 60,687 $ 7,112 $ 67,799 2020 63,753 4,046 67,799 2021 33,074 825 33,899 Total $ 157,514 $ 11,983 $ 169,497

C) Promissory Note In 2015, the Park and Recreation Board entered into a Contract for Deed in the amount of $2,000,000 with St. Anthony Real Estate Company for the purchase of three parcels of land located as follows: 30 31st Avenue North, 3101 Pacific Street and 50 31st Avenue North. In November 2017, the Park and Recreation Board extended the Balloon date to January 2020. The interest rate is four percent (4%) per annum, to be paid in full, together with all accrued interest, on or before January 2, 2020. This is recorded in governmental activities. Listed below is the annual debt service requirement to the required payoff date.

Year Principal Interest Total 2019 $ - $ 80,000 $ 80,000 2020 2,000,000 13,333 2,013,333 Total $ 2,000,000 $ 93,333 $ 2,093,333

In 2016, the Park and Recreation Board entered into a Contract for Deed in the amount of $2,100,000 with L and R Development, LLC for the purchase of one parcel of land located at 4022 ½ Washington Avenue North. The promissory note shall bear interest at a rate of six percent (6%) per annum. Monthly principal and interest payments commenced on April 1, 2016, with the entire remaining unpaid balance of principal and interest due and payable on the first day of the 24th month or March 1, 2018. On March 18, 2018 the Park and Recreation Board refinanced this purchase and secured a $1,160,000 mortgage note and mortgage with Bell Bank to partially finance the property acquisition. The new note shall bear interest at the rate of 3.3 percent (3.3%) payable in 120 installments of principal and interest, commencing April 1, 2018 and will mature

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Year Principal Interest Total 2019 $ 101,897 $ 34,777 $ 136,674 2020 105,268 31,406 136,674 2021 108,935 27,738 136,673 2022 112,636 24,037 136,673 2023 116,463 20,210 136,673 2024-2028 540,105 40,149 580,254 Total $ 1,085,304 $ 178,317 $ 1,263,621

Note 5 - Changes in Long-Term Debt C) Promissory Note (Continued) on March 1, 2028. This is recorded in governmental activities. Listed below is the annual debt service requirement to the required payoff date.

In 2018, the Park and Recreation Board issued a Promissory Note in the amount of $600,000 with Marylee Hardenbergh for the purchase of one parcel of land located at 2230 Marshall Street NE. The promissory note shall bear interest at a rate of four percent (4%) per annum and interest begins to accrue as of the date of the note, August 17, 2018. This note is payable in four (4) equal annual installments beginning on January 15, 2019 and continuing on January 15 of each year thereafter. This note is recorded in governmental activities. Listed below is the annual debt service requirement to the required payoff date.

Year 2019

Principal $ 141,294

Interest $ 24,000 $

Total 165,294

2020 146,946 18,348 165,294 2021 152,824 12,470 165,294 2022 158,936 6,358 165,294 Total $ 600,000 $ 61,176 $ 661,176

D) Changes in Long- Term Liabilities Changes in long-term liabilities are summarized as follows:

Balance Balance Amounts due Governmental Activities: 01/01/18 Additions Retirements 12/31/18 within one year Notes Payable $ 3,817,009 $ 1,760,000 $ (1,891,705) $ 3,685,304 $ 243,191

Interest Payable 6,667 34,934 (6,667) 34,934 34,934 Compensated Absences 4,657,141 3,128,349 (2,887,996) 4,897,494 926,802 Business-Type Activities: Notes Payable 215,282 - (57,768) 157,514 60,687 Compensated Absences 245,813 208,512 (181,211) 273,114 81,934

Total Long-Term Liabilities $ 8,941,912 $ 5,131,795 $ (5,025,347) $ 9,048,360 $ 1,347,548

Note 6 - Operating Leases In 2001, the Park and Recreation Board received approval from the National Park Service to enter into a 30-year lease with the State of Minnesota, Commissioner of Natural Resources for the operations of the Golf Course and Polo Grounds located at Fort Snelling State Park. The Park and Recreation Board is responsible for all costs associated with the operation, maintenance and improvements to the facilities. Improvement projects must receive prior written approval before they can be implemented. The Park and Recreation Board is required to pay a base rent plus a contingent rent based on a percentage of the gross sales. The total amount the Park and Recreation Board paid in 2018 for base and percentage rent was $110,646.

The future minimum lease payments for the operating lease are as follows:

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Note 6 - Operating Leases (Continued) Business-Type

Year Ending December 31 Activity Amount 2019 $ 55,219 2020 55,219 2021 55,219 2022 55,219 2023 55,219 2024-2028 276,095 2029-2030 110,438

Total minimum lease payments $ 662,628

Note 7 - Interfund Transactions Advances to/from other funds: Advances to other funds are to provide temporary working capital for permanent improvement projects, the early retirement of the headquarters building mortgage loan and a loan to the enterprise fund for Minnehaha Refectory improvements. Capital Advances unpaid as of December 31, 2018 are as follows:

Capital Project - Permanent Improvement Due to: Park Self-Insurance Fund Due to: Park Operating Fund Tree Preservation and Reforestation

$ 3,740,000 800,000

Due to: Park Self-Insurance Fund Enterprise Fund - Park Operating Fund Due to: Park Self-Insurance Fund

Total $

40,000

980,350 5,560,350

Transfers: Transfers are indicative of funding for capital projects, general operations and subsidies of various Park and Recreation Board’s operations and re-allocations of special revenues. The following schedule briefly summarizes the Park and Recreation Board’s transfer activity:

Transfers In: General Permanent Park Grant and

Fund Improvement Dedicated Revenue Total Transfer out: General Fund $ - $ 3,970,000 $ 487,383 $ 4,457,383 Park Grant and Dedicated Revenue - 1,335,686 - 1,335,686 Minneapolis Parks Special Revenue - 1,965,220 - 1,965,220 Park Dedication Fees - 446,597 - 446,597 Park Self-Insurance Fund - 192,016 - 192,016 Park Operating Enterprise Fund 25,000 600,000 - 625,000 Total Transfers Out $ 25,000 $ 8,509,519 $ 487,383 $ 9,021,902

Due To/From Other Funds: Interfund balances are either due to timing differences or to the elimination of negative cash balances within the various funds. All interfund balances are expected to be repaid within one year. Receivables and payables between funds of the Park and Recreation Board on December 31, 2018 are:

39

Note 7 - Interfund Transactions Due to/From other funds (Continued)

Due From Other Funds Due To Other Funds General Fund $ - $ 77,021 Park Grant and Dedicated Revenue 46,970 143,031 Minneapolis Parks Special Revenue - 269,615 Tree Preservation & Reforestation Fund 30,002 -Park Dedication Fees - 230 Permanent Improvement Fund 356,885 -Park Internal Services Fund 180 1,045 Park Operating Enterprise Fund 56,905 -

$ 490,942 $ 490,942

Note 8 - Vacation, Severance, Sick and Compensatory Time Pay Vacation may be accumulated up to fifty (50) days. Sick leave may be accumulated indefinitely. Employees have the option of being paid yearly for current unused sick leave over a minimum base of sixty (60) days. Payments are based on a sliding scale ranging from 50 percent to 100 percent depending on the base level attained. In addition, under certain circumstances, employees leaving employment may qualify to receive payment for 50 percent of their unused sick leave at their current rate of pay. Accrued liabilities for compensated absences are reported in the financial statements as described in Note 5.D. 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.

The liability is reported in the governmental funds only if they have matured (as a result of employee resignations and retirements).

The liability is accrued when incurred in the government-wide and proprietary fund financial statements. The current portion of the liability is determined based on historical information.

Note 9 - Defined Benefit Pension Plans A) Plan Description The Park and Recreation Board participates in the following cost-sharing multiple-employer defined benefit pension plans administered by the Public Employees Retirement Association of Minnesota (PERA). PERA’s defined benefit pension plans are established and administered in accordance with Minnesota Statutes, Chapters 353 and 356. PERA’s defined benefit pension plans are tax qualified plans under Section 401 (a) of the Internal Revenue Code.

1) General Employees Retirement Plan (GERP) All full-time and certain part-time employees of the Park and Recreation Board are covered by the General Employees Retirement Plan (GERP). GERP members belong to either the Coordinated Plan, the Basic Plan or the Minneapolis Employee Retirement Fund. Coordinated Plan members are covered by Social Security and Basic Plan members and Minneapolis Employee Retirement Fund members are not. The Basic Plan was closed to new members in 1967. The Minneapolis Employee Retirement Fund was closed to new members in 1978 and merged into the GERP plan in 2015. All new members must participate in the Coordinated Plan and benefits vest after five years of credited service.

2) Public Employees Police and Fire Plan (PEPFP) The PEPFP, originally established for police officers and firefighters not covered by a local relief association, now covers all Park and Recreation Board police officers hired since 1980. Effective July 1, 1999, the PEPFP also covers police officers and firefighters belonging to local relief associations that elected to merge with and transfer assets and administration to PERA. For members first hired after June 30, 2010 but before July 1, 2014, benefits vest on a prorated basis starting with 50 percent after 5 years and increasing 10 percent for each year of service until fully vested after 10 years. Benefits for members first hired after June 30, 2014, vest on a prorated basis from 50 percent after 10 years and increasing 5 percent each year of service until fully vested after 20 years.

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Note 9 - Defined Benefit Pension Plans B) Benefits Provided PERA provides retirement, disability, and death benefits. Benefit provisions are established by state statute and can only be modified by the state legislature. Benefit increases are provided to benefit recipients each January. Increases are related to the funding ratio of the plan. Benefit recipients receive a future annual 1.0 percent postretirement benefit increase. If the funding ratio reaches 90 percent for two consecutive years, the benefit increase will revert to 2.5 percent. If, after reverting to a 2.5 percent benefit increase, the funding ratio declines to less than 80 percent for one year or less than 85 percent for two consecutive years, the benefit increase will decrease to 1.0 percent

The benefit provisions stated in the following paragraphs of this section are current provisions and apply to active plan participants. Vested, terminated employees who are entitled to benefits but are not receiving them yet are bound by the provisions in effect at the time they last terminated their public service.

Benefits are based on a member’s highest average salary for any 60 consecutive months of allowable service, age, and years of credit at termination of service. Two methods are used to compute benefits for General Employees Retirement Plan Coordinated and Basic Plan members. Members hired prior to July 1, 1989, receive the higher of a step-rate benefit accrual formula (Method 1) or a level accrual formula (Method 2). 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 remaining year. The annuity accrual rate for a Coordinated Plan member is 1.2 percent of average salary for each of the first ten years of service and 1.7 percent for each remaining 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. Only Method 2 is used for members hired after June 30, 1989. Minneapolis Employees Retirement Fund members have an annuity accrual rate of 2.0 percent of average salary for each of the first ten years of service and 2.5 percent for each remaining year. For Public Employees Police and Fire Plan members, the annuity accrual rate is 3.0 percent of average salary for each year of service.

For General Employees Retirement Plan members hired prior to July 1, 1989, a full annuity is available when age plus years of service equal 90, and normal retirement age is 65. For members hired on or after July 1, 1989, normal retirement age is the age for unreduced Social Security benefits capped at 66. For Public Employees Police and Fire Plan members, normal retirement age is 55, and for members who were hired prior to July 1, 1989, a full annuity is available when age plus years of service equal 90. Disability benefits are available for vested members and are based on years of service and average high five salary.

C) Contributions Pension benefits are funded from member and employer contributions and income from the investment of fund assets. Minnesota Statutes Chapter 353 sets the rates for employer and employee contributions. Contribution rates can only be modified by the state legislature. The employee and employer contribution rates did not change from the previous year.

1) GERP Contributions Basic Plan members, Coordinated Plan members, and Minneapolis Employee Retirement Fund members, were required to contribute 9.10 percent, 6.50 percent, and 9.75 percent respectively, of their annual covered salary in calendar year 2018. Participating employers are required to contribute 11.78 percent of pay for Basic Plan members, 7.50 percent for Coordinated Plan members, and 9.75 percent for Minneapolis Employees Retirement Fund members in calendar year 2018. The Park and Recreation Board contributions related to payroll to the GERP for the year ended December 31, 2018 was $2,788,819. The Park and Recreation Board’s fixed contributions to the GERP for the year ended December 31, 2018 was $2,169,300. Total contributions were equal to the required contribution as set by state statute.

2) PEPFP Contributions Plan members were required to contribute 10.80 percent of their annual covered salary in calendar year 2018. Employers were required to contribute 16.20 percent of pay for PEPFP members in calendar year 2018. The Park and Recreation Board contributions to the PEPFP for the year ended December 31, 2018 was $534,399. Employer contributions were equal to the required contributions as set by state statute.

D) Pension Costs 1) GERP Pension Costs At December 31, 2018, the Park and Recreation Board reported a liability of $56,978,371 for the proportionate share of the GERF’s net pension liability. The net pension liability was measured as of June 30, 2018, and the total pension liability used

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Proportionate share of net pension liability $ 56,978,371 State of Minnesota's proportionate share of the net position liability associated with the Park and Recreation Board Total

$

1,735,310 58,713,681

Note 9 - Defined Benefit Pension Plans 1) GERP Pension Costs (Continued) to calculate the net pension liability was determined by an actuarial valuation as of that date. Each employer’s proportion of the net pension liability was based on the employer’s contributions received by PERA during the measurement period for employer payroll paid dates from July 1, 2017, through June 30, 2018, relative to the total employer contributions received from all of PERA’s participating employers. At June 30, 2018, the Park and Recreation Board’s combined proportionate share was 1.0271 percent, which was an increase of 0.0891 percent from its proportion measured as of June 30, 2017.

For the year ended December 31, 2018, the Park and Recreation Board recognized pension expense of $3,588,937 for the proportionate share of the GERP’s pension expense.

In addition, the Park and Recreation Board also recognized $404,671 as pension expense (and grant revenue) for its proportionate share of the State of Minnesota’s contribution of $6 million to the General Employees Fund, which qualifies as a special funding situation. Legislation requires the State of Minnesota to contribute $16 million to the General Employees Retirement Plan for the fiscal years ended June 30, 2018 and 2019, and $6 million thereafter, through calendar year 2031.

At December 31, 2018, the Park and Recreation Board reported proportionate shares of the GERP’s deferred outflows of resources and deferred inflows of resources related to pensions from the following sources:

Deferred Deferred Outflows of Inflows of Resources Resources

Differences between expected and actual economic experience $ 784,168 $ 909,474 Difference between projected and actual investment earnings - 3,039,522 Changes in Actuarial Assumptions 4,992,119 3,383,386 Changes in Proportion 2,254,260 1,146,844 Contributions paid to PERA subsequent to the measurement date 1,355,028 -

Total $ 9,385,575 $ 8,479,226

Contributions subsequent to the measurement date are shown as deferred outflows in the above table and will be recognized as a reduction to net pension liability for the year ended December 31, 2019. These Park and Recreation Board contributions were $1,355,028. Other amounts reported as deferred outflows and inflows of resources related to pensions will be recognized in pension expense as follows:

Pension Year Ended Expense

December 31 Amount 2019 2020 2021 2022

$ 3,826,005 (1,654,055) (1,966,546)

(654,083)

2) PEPFP Pension Costs At December 31, 2018, the Park and Recreation Board reported a liability of $3,511,412 for the proportionate share of the PEPFP’s net pension liability. The net pension liability was measured as of June 30, 2018, and the total pension liability used to calculate the net pension liability was determined by an actuarial valuation as of that date. Each employer’s proportion of

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Note 9 - Defined Benefit Pension Plans 2) PEPFP Pension Costs (Continued) the net pension liability was based on the employer’s contributions received by PERA during the measurement period for employer payroll paid dates from July 1, 2017, through June 30, 2018, relative to the total employer contributions received from all of PERA’s participating employers. At June 30, 2018, the Park and Recreation Board’s combined proportionate share was 0.3708 percent, which was an increase of 0.0442 percent from its proportion measured as of June 30, 2017.

For the year ended December 31, 2018, the Park and Recreation Board recognized pension expense of ($143,959) for the proportionate share of the PEPFP’s pension expense.

The Park and Recreation Board also recognized $30,663 as revenue, which results in a reduction of the net pension liability, for its proportionate share of the State of Minnesota’s on-behalf contribution to the Public Employees Police and Fire Fund. Legislation requires the State of Minnesota to contribute $9,000,000 to the Public Employees Police and Fire Fund each year, starting in fiscal year 2014, until the plan is 90.0 percent funded.

At December 31, 2018, the Park and Recreation Board reported a share of the PEPFP’s deferred outflows of resources and deferred inflows of resources related to pensions from the following sources:

Deferred Deferred Outflows of Inflows of Resources Resources

Differences between expected and actual economic experience $ 148,313 $ 873,595 Difference between projected and actual investment earnings - 789,460 Changes in Actuarial Assumptions 4,395,121 5,135,197 Changes in proportion 481,151 190,772 Contributions paid to PERA subsequent to the measurement date 368,029 -

Total $ 5,392,614 $ 6,989,024

Contributions subsequent to the measurement date are shown as deferred outflows in the above table and will be recognized as a reduction to net pension liability for the year ended December 31, 2019. These contributions total $368,029 for the Park and Recreation Board. Other amounts reported as deferred outflows and inflows of resources related to pensions will be recognized in pension expense as follows:

Pension Year Ended Expense

December 31 Amount 2019 $ (26,349) 2020 (192,050) 2021 (459,348) 2022 (1,363,966) 2023 77,274

Total pension expense for all plans recognized by the Park and Recreation Board for the year ended December 31, 2018 was $3,444,978.

E) Actuarial Assumptions The total pension liability in the June 30, 2018, actuarial valuation was determined using the individual entry-age normal actuarial cost method and the following actuarial assumptions:

Assumption GERP/PEPFP Inflation 2.5% per year Active Member Payroll Growth 3.25% per year Investment Rate of Return 7.50%

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Note 9 - Defined Benefit Pension Plans E) Actuarial Assumptions (Continued) Salary increases were based on a service-related table. Mortality rates for active members, retirees, survivors, and disabilitants for all plans were based on RP-2014 tables, while Public Employees Police and Fire Plan were based on RP-2014 tables for males or females, as appropriate, with slight adjustments. For the General Employees Retirement Plan, cost of living benefit increases for retirees are assumed to be 1.25 percent per year. For the Public Employees Police and Fire Plan, cost of living benefit increases for retirees are assumed to be 1.0 percent, as set by state statute.

Actuarial assumptions used in the June 30, 2018 valuation were based on the results of actuarial experience studies. The experience study in the GERP was for the period 2008 through 2015. The most recent five-year experience study for PEPFP was completed in 2016. Economic assumptions were updated in 2017 based on a review of inflation and investment return assumptions.

The long-term expected rate of return on pension plan investments is 7.5 percent for PERA. The State Board of Investment, which manages the investments of PERA, prepares an analysis of the reasonableness of the long-term expected rate of return on a regular basis using a building-block method in which best-estimate ranges of expected future rates of return are developed for each major asset class. These ranges are combined to produce an expected long-term rate of return by weighting the expected future rates of return by the target asset allocation percentages. The target allocation and best estimates of arithmetic real rates of return for each major asset class are summarized in the following table:

Long-Term Expected Asset Class Target Allocation Real Rate of Return

Domestic stocks 36% 5.10% International stocks 17% 5.30% Bonds (Fixed income) 20% 0.75% Alternative assets (Private markets) 25% 5.90% Cash 2% 0.00%

F) Discount Rate The discount rate used to measure the total pension liability was 7.5 percent for PERA. The projection of cash flows used to determine the discount rate assumed that employee and employer contributions will be made at the rate specified in statute. Based on that assumption, the GERP’s and PEPFP’s fiduciary net position were projected to be available to make all projected future benefit payments of current and active and inactive employees. Therefore, the long-term expected rate of return on pension plan investments was applied to all periods of projected benefit payments to determine the total pension liability.

G) Changes in Actuarial Assumptions The following changes in actuarial assumptions occurred in 2018:

General Employees Retirement Plan • The mortality projection scale was changed from MP-2015 to MP-2017. • The assumed post-retirement benefit increase rate was changed from 1.0 percent per year through 2044 and 2.5

percent per year thereafter, to 1.25 percent per year.

Public Employees Police and Fire Plan • The mortality projection scale was changed from MP-2016 to MP-2017. • As set by statute, the assumed post-retirement benefit increases was changed to 1.0 percent for all years, with no

trigger. • An end date of July 1, 2048 was added to the existing $9.0 million state contribution. Additionally, annual state aid

will equal $4.5 million in fiscal years 2019 and 2020, and $9.0 million thereafter, until the plan reaches 100 percent funding, or July 1, 2048, if earlier.

• Member contributions were changed effective January 1, 2019 and January 1, 2020 from 10.80 percent to 11.30 and 11.80 percent of pay, respectively. Employer contributions were changed effective January 1, 2019 and January 1, 2020 from 16.20 percent to 16.95 and 17.70 percent of pay, respectively. Interest credited on member contributions decreased from 4.00 percent to 3.00 percent beginning July 1, 2018.

• Deferred augmentation was changed to 0.00 percent, effective January 1, 2019. Augmentation that has already accrued for deferred members will still apply.

• Actuarial equivalent factors were updated to reflect revised mortality and interest assumptions.

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Note 9 - Defined Benefit Pension Plans (Continued) H) Pension Liability Sensitivity The following presents the Park and Recreation Board’s proportionate share of the net pension liability for all plans it participates in, calculated using the discount rate disclosed in the preceding paragraph, as well as what the Park and Recreation Board’s proportionate share of the net pension liability would be if it were calculated using a discount rate 1 percentage point lower or 1 percentage point higher than the current discount rate:

1% Decrease in 1% Increase in Discount Rate Discount Rate Discount Rate

(6.5%) (7.5%) (8.5%) Proportionate share of the General Employees Retirement Fund net pension liability $ 76,852,224 $ 56,978,371 $ 40,438,712

1% Decrease in 1% Increase in Discount Rate Discount Rate Discount Rate

(6.5%) (7.5%) (8.5%) Proportionate share of the Public Employees Police and Fire Fund net pension liability $ 7,528,687 $ 3,511,412 $ 189,292

I) Pension Plan Fiduciary Net Position Detailed information about PERA’s fiduciary net position is available in a separately issued PERA financial report that includes financial statements and required supplementary information. That report may be obtained on the Internet at www.mnpera.org; by writing to PERA at 60 Empire Drive, Suite 200, St. Paul, Minnesota 55103-2088; or by calling 651-296-7460 or 1-800-652-9026.

Note 10 – Other Postemployment Benefits (OPEB) The Park and Recreation Board has complied with the Government Accounting Standards Board’s (GASB) Statement number 75, Accounting and Financial Reporting for Postemployment Benefits Other Than Pensions, for the annual financial report starting with the year ending December 31, 2018. The City of Minneapolis engaged a consulting actuary who has conducted a review of liabilities to be reported as required by GASB 75. In general, the City and the Park Board do not pay the cost of health insurance for retired employees, except in limited circumstances. Retired Park and Recreation Board employees however, may purchase health insurance offered to Park and Recreation Board employees at the retired employee’s expense. Including retired employees with current employees causes health insurance premiums for current employees to be more than if retired employees were not in the same pool of insureds. The Park and Recreation Board and current employees share the cost of health insurance for current employees. The increased cost of health insurance premiums for current employees is considered an implicit subsidy for the retired employees and is disclosed as required by GASB 75.

A) Plan Description The Park and Recreation Board participates in the postemployment healthcare plan provided by the City of Minneapolis. The City provides a single-employer defined benefit healthcare plan to eligible retirees and their spouses. The plan offers medical and dental coverage. Medical coverage is administered by Medica. Dental coverage is administered through the Delta Dental Plan of Minnesota. The City is self-insured for dental coverage. Retirees pay 100 percent of the blended active/retiree premium rate, in accordance with Minnesota Statutes Chapter 471.61, subd. 2b. It is the City’s policy to periodically review its medical and dental coverage, and to obtain requests for proposals in order to provide the most favorable benefits and premiums for City employees and retirees.

There is no separate, audited GAAP-basis postemployment benefit plan report available.

B) Funding Policy Retirees and their spouses of the City and the Park and Recreation Board contribute to the healthcare plan at the same rate as the City and the Park and Recreation Board employees. This results in the retirees receiving an implicit rate subsidy. Contribution requirements are established by the City, based on the contract terms with Medica and Delta Dental. The required contributions are based on projected pay-as-you-go financing requirements. For fiscal year 2018, the Park and Recreation Board contributed $98,776 to the plan. As of January 1, 2018, there were approximately 505 total active and

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www.mnpera.org

Note 10 – Other Postemployment Benefits (OPEB) B) Funding Policy (Continued) inactive employees receiving health benefits from the City’s health plan, of which 27 are retirees of the Park and Recreation Board.

C) Total OPEB Liability The Park and Recreation Board’s total OPEB Liability of $1,407,494, was measured as of January 1, 2018, and was determined by an actuarial valuation as of January 1, 2017. This represents 4.01 percent of the total collective liability for the total plan. The total OPEB liability in the fiscal year-end December 31, 2018, actuarial valuation was determined using the following actuarial assumptions and other inputs, applied to all periods and entities included in the measurement unless otherwise specified:

Assumption OPEB Liability Inflation 2.50% Salary increases 2.90% Health care cost trend 6.25% in 2018, grading to 5.00% over 5 years Discount Rate 3.30% which is a change from the prior year rate of 3.00% Mortality Rate RP-2014 White Collar Mortality Tables with MP-2016 Generational Improvement Scale

(with blue collar adjustment for Police and Fire Personnel in the City and Park Board)

Changes in total OPEB liability Balance at January 1, 2018, restated

Changes for the year Service cost Interest cost

Benefit payments Total net change Balance at December 31, 2018

$

$

1,391,293

73,56346,638

(104,000)16,201

1,407,494

OPEB Liability Sensitivity

The following presents the total OPEB liability of the Park and Recreation Board calculated using the discount rate previously disclosed, as well as what the total OPEB liability would be if it were calculated using a discount rate that is 1.0 percentage point lower or 1.0 percentage higher than the current discount rate.

Selected 1% Decrease Discount Rate 1% Increase

Discount Rate 2.30% 3.30% 4.30% Park and Recreation Board total OPEB liability $ 1,513,210 $ 1,407,494 $ 1,308,572

The following presents the total OPEB liability of the Park and Recreation Board calculated using the health care cost trend previously disclosed, as well as what the total OPEB liability would be if it were calculated using health care cost trend rates that are 1.0 percentage point lower or 1.0 percentage point higher than current health care cost trend rate:

Selected Healthcare 1% Decrease Trend Rate 1% Increase

Medical Trend Rate 5.25% Decreasing to 6.25% Decreasing to 7.25% Decreasing to 4.00% over 5 years 5.00% over 5 years 6.00% over 5 years

Park and Recreation Board total OPEB liability $ 1,256,216 $ 1,407,494 $ 1,586,791

OPEB Expense and Deferred Outflows of Resources and Deferred Inflows of Resources Related to OPEB

For the year ended December 31, 2018, the Park and Recreation Board recognized OPEB expense of $98,776. The Park and Recreation Board also reported deferred outflows of resources related to OPEB for employer contributions subsequent to the

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Note 10 – Other Postemployment Benefits (OPEB) (Continued) measurement date in the amount of $114,976, which will be recognized as a reduction in the liability in the year ended December 31, 2019.

Changes in Actuarial Assumptions:

The following changes in actuarial assumptions occurred in 2018:

The discount rate used changed from 3.50 percent to 3.30 percent.

Note 11 - Stewardship, Compliance, and Accountability Deficit Fund Equity The Park Permanent Improvement Fund had a deficit fund balance as of December 31, 2018. The deficit is primarily due to the timing of capital reimbursements from storm related expenditures. The Park and Recreation Board intends to improve the fund position in 2019 through grant reimbursements and other funding sources.

Note 12 - Risk Management The Park and Recreation Board is exposed to various risks of loss related to torts; theft of, damage to, and destruction of assets; errors and omissions; injuries to employees; and natural disasters. The Park and Recreation Board purchases commercial insurance to cover theft of, damage to, and destruction of assets. There were no reductions in insurance coverage or settlements in excess of coverage in the last three fiscal years. For employee health and dental, the Park and Recreation Board as a component unit of the City of Minneapolis participates in the City’s process of obtaining risk financing for these types of losses. The Park and Recreation Board pays an employer share of commercial health coverage based on negotiated terms within the various union contracts which cover Park and Recreation Board employees. The Park and Recreation Board pays 100% of the premium to the City of Minneapolis for dental coverage which is a self-insured function. Further information regarding these coverages can be obtained by referring to the City of Minneapolis Financial Statements. For all other risks of loss, the Park and Recreation Board operates a Self-Insurance Fund (an internal service fund) for accounting and financing purposes. No excess commercial coverage is purchased, and the Park and Recreation Board assumes all risk associated with these activities.

All funds of the Park and Recreation Board participate in the Park Self-Insurance Fund and make payments based on historical experience of the amounts needed to pay prior and current year claims which become payable in the given year. Park Self-

Insurance Fund liabilities are reported based on the requirements of Governmental Accounting Standards Board Statement 10, which requires that a liability must be recognized when it is probable that a loss has occurred, and the amount of that loss can be reasonably estimated. The workers’ compensation claims liability for fiscal year ended December 31, 2018 is $3,218,303 and is based on actuarial estimates dated December 31, 2017. The general liability claims liability for fiscal year ended December 31, 2018 is $1,591,972 and is based on actuarial estimates dated December 31, 2016.

Changes in the claims liability for the two years ended December 31, 2018 and December 31, 2017 are as follows:

Workers' Compensation General Liability 2018 2017 2018 2017

Liability Balance, January 1 $ 2,734,484 $ 2,911,021 $ 1,406,624 $ 1,517,414 Current Year Claims and Changes in Estimates 1,863,460 1,550,623 1,072,159 239,499 Claim Payments (1,379,641) (1,727,160) (886,811) (350,289)

Liability Balance, December 31 $ 3,218,303 $ 2,734,484 $ 1,591,972 $ 1,406,624

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Note 12 - Risk Management (Continued) Changes in Net Position – By Major Risk Program in the Park Self-Insurance Fund for the year ended December 31, 2018 follows:

Workers' General Compensation Liability Total

Beginning Balance, January 1, $ 2,546,148 $ (165,484) $ 2,380,664 Revenues 1,805,794 367,995 2,173,789 Expenses (1,379,641) (886,811) (2,266,452) Other Revenues 113,686 67,642 181,328 Transfers out - (192,016) (192,016) Ending Balance, December 31 $ 3,085,987 $ (808,674) $ 2,277,313

Note 13 - Contingent Liabilities In connection with the normal conduct of its affairs, the Park and Recreation Board is involved in various claims, litigation and judgments. In addition, the Park and Recreation Board continues to experience various claims for workers compensation. None of these contingent liabilities are anticipated to be material to the financial statements of the Park and Recreation Board.

The Park and Recreation Board has received significant financial assistance from federal governmental agencies in the form of grants. The disbursement of funds received under these generally require compliance with terms and conditions specified in grant agreements and are subject to audit by grantor agencies. Any disallowed claims resulting from such audits could become a liability of the Park and Recreation Board. However, in the opinion of management, liabilities resulting from disallowed claims, if any, would not have a material effect on the Park and Recreation Boards financial position at December 31, 2018.

In connection with a construction project the Park and Recreation Board received a loan from Three Rivers Park District. The loan is due and payable only if the Park and Recreation Board should receive funding for this specific purpose. For the year ended December 31, 2018, the remaining amount due to Three Rivers Park District was not recorded as payable due to the unlikelihood of funding becoming available. The balance as of December 31, 2018, is $125,000.

Note 14 - Joint Ventures Minneapolis Youth Coordinating Board The Minneapolis Youth Coordinating Board is a joint venture between the City of Minneapolis, the Minneapolis Special School District No. 1, the Minneapolis Park and Recreation Board, and Hennepin County. Membership on the Board consists of 10 individuals including the Mayor of Minneapolis, one of the Judges of Hennepin County assigned to the Juvenile Court, two representatives from the Minneapolis City Council, two representatives from the Board of Directors of Special School District No. 1, two Hennepin County Board of Commissioners, the Hennepin County Attorney and one representative from the Minneapolis Park and Recreation Board. The Board was created for the purpose of improving services and the ability of public agencies to promote the health, safety, education, and development of the community's youth. Its objective is to strengthen cooperation and provide an improved means to identify and remedy conditions, which hinder or prevent the community's youth from becoming healthy, productive members of society. For the fiscal year 2018, the Minneapolis Park and Recreation Board contributed $16,577 to the Minneapolis Youth Coordinating Board for its general operations. Upon dissolution of the Board, all property of the Youth Coordinating Board shall be sold and the proceeds thereof, together with monies on hand after payment of all obligations, shall be distributed to the Participating Parties in proportion to the total contributions to the Board made by the Participating Parties. Financial information for the Youth Coordinating Board can be obtained from Towle Building, Room 540, 330 2nd Avenue South, Minneapolis, Minnesota 55401.

Mississippi Watershed Management Organization This organization began as the Middle Mississippi River Watershed Management Organization in 1985 with a joint powers agreement in accordance with the Minnesota Statute Section 103B. The agreement was executed by the Cities of Minneapolis, Saint Paul, Lauderdale, Falcon Heights, Saint Anthony Village, the Minneapolis Park and Recreation Board, and the University of Minnesota. The organization shortened its name to the Mississippi Watershed Management Organization (MWMO). The MWMO’s governing Board of Commissioners consists of seven commissioners, which includes one representative from the Minneapolis Park and Recreation Board. The MWMO Watershed Management Plan 2011-2021 lays out requirements for local water management plans, sets standards to be implemented by the member organizations, and

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Note 14 - Joint Ventures Mississippi Watershed Management Organization (Continued) outlines MWMO partnership and funding opportunities for member organizations. The Park and Recreation Board is not required to provide contributions for the agency’s general operations.

Note 15 - Service Concession Agreement The Park and Recreation Board entered into a Lease Agreement with the Loppet Foundation on September 12, 2018. The Park Board, as owner of the Theodore Wirth Regional Park, and the Loppet Foundation, whose mission is for year-round outdoor adventure in the Minneapolis area, agreed that a new building should be constructed on Park Land. The Foundation was solely responsible for the construction of the building, in accordance with the schematic design previously agreed upon with the Park Board. The Foundation agreed to donate the Adventure and Welcome Center to the Park Board upon completion of construction. The Park Board wishes to lease to the Foundation the Adventure and Welcome Center.

The initial term of the lease commences on September 12, 2018 and terminates 20 years after that date. The Foundation has the right to renew the lease for two additional terms of 10 years each. The Foundation will pay 18% of the Net Income, plus a lump sum annual amount of $6,500, increasing by $1,000 every ten years of this agreement. The Foundation is also required to deposit into an interest-bearing escrow account, $20,000 per year for the first ten years, and $30,000 per year for years eleven through twenty. During the first additional term, the amount will be $40,000, and $50,000 during the second additional term.

The Park and Recreation Board reports the donation of the Adventure and Welcome Center as a capital asset and deferred inflow of resources in the amount of $4,549,000. The annual lump sum amounts were reported as a receivable and a deferred inflow of resources in the amount of $123,164.

Note 16 - Subsequent Events The Park and Recreation Board and Graco Minnesota, Inc. (Graco) reached an agreement regarding the condemnation of land for the East Bank Trail. Through negotiations the two parties also reached several other agreements for the development of a riverfront park adjacent to Hall’s Island in northeast Minneapolis. On October 17, 2018, the Board of Commissioners voted 8-1 to approve Resolution 2018-301 which details the agreements between Graco and the MPRB. The resolution approved the agreements and resulted in the donation by Graco of an easement for park and trail purposes and the return of the $622,300 that the Park and Recreation Board paid to Graco for the original easement; the acquisition by Graco of certain portions of Parcel D and certain other property owned by the Park and Recreation Board for a purchase price of $1,100,000; the prepayment of $150,000 in future park dedication fees; the donation of $100,000 for the creation of a flood platform; and upon closing the purchase agreement, the Graco Foundation agreed to donate $3,027,700 for the development of the park in return for naming of the park as “Graco Park”. On June 4, 2019, the closing occurred for the sale of the property and the Park and Recreation Board received $1,865,825 from Graco for the land purchase and the donation of the easement. On June 5, 2019 the Park and Recreation Board received the donation of $3,027,700 from the Graco Foundation for park development and naming rights.

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REQUIRED SUPPLEMENTARY INFORMATION

OTHER THAN MANAGEMENT DISCUSSION

AND ANALYSIS

A-1 MINNEAPOLIS PARK AND RECREATION BOARD

SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE - BUDGET AND ACTUAL PARK AND RECREATION GENERAL FUND For the Year Ended December 31, 2018

REVENUES Taxes:

General Property Tax -Current and Deliquent Property Tax Increment

Fiscal Disparities Other Taxes

Total Taxes

ORIGINAL FINAL BUDGET BUDGET

$ 59,845,051 $ 59,845,051 - -- -

300,000 300,000 60,145,051 60,145,051

$

ACTUAL

53,595,298 63,175

6,258,402 3,942

59,920,817

VARIANCE

$ (6,249,753) 63,175

6,258,402 (296,058) (224,234)

Intergovernmental Revenues: Federal Grants

U.S. Department of Transportation State Grants

Local Government Aid Payments in Lieu of Taxes/Rent Other Aid Minnesota State Post Board

Other Local Governments Metropolitan Council - Operations & Maintenance Minnehaha Creek Watershed District - Aquatics Invasive Species Grant

Total Intergovernmental Revenues

-742,356

9,345,764 ---

66,418--

10,154,538

-742,356

9,345,764 ---

66,418 --

10,154,538

25,075-

9,346,869 85,045 73,290 31,581

-660,872

49,943 10,272,675

25,075 (742,356)

1,105 85,045 73,290 31,581

(66,418) 660,872

49,943 118,137

Charges For Services and Sales: Rents and Commissions Overhead Park Board Services Other Services Provided

Total Charges For Services and Sales

1,055,801 398,665

7,561,260 631,202

9,646,928

1,055,801 398,665

7,561,260 631,202

9,646,928

1,579,125 430,864

5,625,510 1,594,023 9,229,522

523,324 32,199

(1,935,750) 962,821

(417,406)

Licenses and Permits 294,375 294,375 245,152 (49,223)

Fines and Forfeits 346,000 346,000 318,764 (27,236)

Special Assessments - - 146 146

Investment Earnings - - 68 68

Miscellaneous Revenues: Contributions and Donations Damage Claims Other

Total Miscellaneous Revenues

135,76913,000

-148,769

135,769 13,000

-148,769

92,067 1,978

406,199 500,244

(43,702) (11,022) 406,199 351,475

Total Revenues 80,735,661 80,735,661 80,487,388 (248,273)

51

A-1

MINNEAPOLIS PARK AND RECREATION BOARD SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN

(Continued)

ACTUAL VARIANCE

8,796,546 4,624,927

40,186,499 2,975,397

19,301,819 1,922,233

77,807,421

(279,900) (57,343) 398,728 311,430 (17,163)

(261,504) 94,248

35,670 13,432 49,102

(35,670) (13,432) (49,102)

77,856,523 45,146

2,630,865 (203,127)

1,160,000 25,000

(3,970,000) (487,383)

(3,272,383)

1,160,000 -

(1,160,000) (87,383) (87,383)

(641,518) (290,510)

5,921,479 -

$ 5,279,961 $ (290,510)

EXPENDITURES Culture and Recreation -

Superintendent's Office Deputy Superintendent's Office Environmental Stewardship Division Planning Services Division Recreation Services Division City Management Fee & Workers' Compensation

Total Culture and Recreation

Principal Retirement Interest and Fiscal Charges

Total Debt Service

Total Expenditures

Excess of Revenues Over (Under) Expenditures

OTHER FINANCING SOURCES (USES) Loans Issued Transfer from Park Enterprise Fund Transfer to Permanent Improvement Fund Transfer to Park Special Revenue Fund

Total Other Financing Sources (Uses)


Fund Balance - January 1

Fund Balance - December 31

FUND BALANCE - BUDGET AND ACTUAL PARK AND RECREATION GENERAL FUND For the Year Ended December 31, 2018

ORIGINAL FINAL BUDGET BUDGET

8,516,646 4,567,584

40,585,227 3,286,827

19,284,656 1,660,729

8,516,646 4,567,584

40,585,227 3,286,827

19,284,656 1,660,729

77,901,669 77,901,669

---

---

77,901,669

2,833,992

77,901,669

2,833,992

-25,000

(2,810,000) (400,000)

(3,185,000)

-25,000

(2,810,000) (400,000)

(3,185,000)

(351,008) (351,008)

5,921,479 5,921,479

$ 5,570,471 $ 5,570,471

The notes to the required supplementary information are an integral part of this schedule.

52


SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE - BUDGET AND ACTUAL

MUSEUM COUNTY-WIDE LEVY SPECIAL REVENUE FUND For the Year Ended December 31, 2018

ORIGINAL FINAL BUDGET BUDGET ACTUAL VARIANCE

REVENUES Taxes (County-Wide Levy):

General Property Tax -Current and Deliquent $ 12,777,854 $ 12,969,940 $ 11,903,643 $ (1,066,297)

Fiscal Disparities - - 1,058,363 1,058,363 Total Taxes 12,777,854 12,969,940 12,962,006 (7,934)

Intergovernmental Revenues: State Grants

Payment in Lieu of Taxes/Rent - - 7,934 7,934

Total Revenues 12,777,854 12,969,940 12,969,940 -


Maintenance and Repairs 12,777,854 12,969,940 12,969,940 -

Net Change in Fund Balance - - - -

Fund Balance - January 1 - - - -

Fund Balance - December 31 $ - $ - $ - $ -


53



PARK GRANT AND DEDICATED REVENUE SPECIAL REVENUE FUND For the Year Ended December 31, 2018

REVENUES Intergovernmental Revenues

Federal Government Grants U.S. Department of Justice

State Government Grants Minnesota State Arts Board Minnesota Dept. of Employment and Econ. Dev.

Other Local Goverments Hennepin County Other Local Payments Metropolitan Council

Total Intergovernmental

$

ORIGINAL BUDGET

-

--

--

1,300,000 1,300,000

FINAL BUDGET ACTUAL VARIANCE

$ - $ 15,000 $ 15,000

- 36,409 36,409 359,093 273,233 (85,860)

- 15,000 15,000 - 140,434 140,434

1,512,726 1,512,726 -1,871,819 1,992,802 120,983

Charges For Services and Sales 21,600 139,835 433,476 293,641

Licenses and Permits - - 342,223 342,223

Fines and Forfeits 6,000 6,000 350 (5,650)

Miscellaneous Contributions and Donations Damage Claims Revenue From Trusts Other Miscellaneous Revenues

Total Miscellaneous

--

3,000 -

3,000

883,528 -

3,000 50,000

936,528

1,086,672 27,149

8,999 105,260

1,228,080

203,144 27,149

5,999 55,260

291,552

Total Revenues 1,330,600 2,954,182 3,996,931 1,042,749


Special Dedicated Revenue Outlay Total Expenditures

30,600 30,600

887,358 887,358

1,292,558 1,292,558

(405,200) (405,200)

Excess of Revenues Over (Under) Expenditures 1,300,000 2,066,824 2,704,373 637,549

OTHER FINANCING SOURCES (USES) Transfer from Park General Fund Transfer to Park Permanent Improvement Fund


-(1,300,000) (1,300,000)

-(2,066,824) (2,066,824)

487,383 (1,335,686)

(848,303)

487,383 731,138

1,218,521

Net Change in Fund Balance - - 1,856,070 1,856,070

Fund Balance - January 1 11,611,559 11,611,559 11,611,559 -

Fund Balance - December 31 $ 11,611,559 $ 11,611,559 $ 13,467,629 $ 1,856,070


54



TREE PRESERVATION AND REFORESTATION SPECIAL REVENUE FUND For the Year Ended December 31, 2018

ORIGINAL FINAL REVENUES BUDGET BUDGET ACTUAL VARIANCE Taxes:

General Property Tax -Current and Deliquent $ 1,734,651 $ 1,734,651 $ 1,551,414 $ (183,237) Property Tax Increment - - 1,831 1,831

Fiscal Disparities - - 181,387 181,387 Total Taxes 1,734,651 1,734,651 1,734,632 (19)

State Government Payments in Lieu of Taxes/Rent - - 2,465 2,465

Total Revenues 1,734,651 1,734,651 1,737,097 2,446


Special Dedicated Revenue Outlay 1,777,804 1,777,804 1,745,671 32,133 Total Expenditures 1,777,804 1,777,804 1,745,671 32,133

Net Change in Fund Balance (43,153) (43,153) (8,574) 34,579

Fund Balance - January 1 11,526 11,526 11,526 -

Fund Balance - December 31 $ (31,627) $ (31,627) $ 2,952 $ 34,579


55


CHEDULE OF REVENUES, EXPENDITURES AND CHANGESFUND BALANCE - BUDGET AND ACTUAL

PARK DEDICATION FEES SPECIAL REVENUE FUND For the Year Ended December 31, 2018

S IN

ORIGINAL FINAL BUDGET BUDGET ACTUAL VARIANCE

REVENUES Investment Earnings Miscellaneous Revenues Total Revenues


Special Dedicated Revenue Outlay Total Expenditures

Excess of Revenues Over (Under) Expendit

OTHER FINANCING SOURCES (USES) Transfer to Park Permanent Improvement



Fund Balance - January 1

Fund Balance - December 31

$ - $ - $ 246,878 $ 246,878 - 500,000 5,509,186 5,009,186 - 500,000 5,756,064 5,256,064

- - - -- - - -

ures - 500,000 5,756,064 5,256,064

Fund - (500,000) (446,597) 53,403 - (500,000) (446,597) 53,403

- - 5,309,467 5,309,467

8,243,055 8,243,055 8,243,055 -

$ 8,243,055 $ 8,743,055 $ 13,552,522 $ 5,309,467


56

A-6

MINNEAPOLIS PARK AND RECREATION BOARD SCHEDULE OF PROPORTIONATE SHARE OF NET PENSION LIABILITY

PUBLIC EMPLOYEES GENERAL EMPLOYEES RETIREMENT PLAN DECEMBER 31, 2018

Employer's Proportionate Share

State's of the Net Pension Proportionate Share Liability and the (Amount) of the Net State's Proportionate Employer

Employer's Pension Liability Share of the Net Proportionate Share Plan Fiduciary Employer's Proportionate Associated with Pension Liability of the Net Pension Net Position as

Proportionate Share Share (Amount) of Minneapolis Park Associated With Liability (Asset) as a a Percentage (Percentage) of the the Net Pension and Recreation Minneapolis Park and Employer's Percentage of its of the Total

Measurement Net Pension Liability (Asset) Board Recreation Board Covered Payroll Covered Payroll Pension Date Liability (Asset) (a) (b) (a+b) (c) ((a+b)/c) Liability 2018 0.9536% $ 56,978,371 $ 1,735,310 $ 58,713,681 $ 35,153,492 167.02% 79.53% 2017 0.9380% $ 59,881,242 $ 763,600 $ 60,644,842 $ 32,272,100 187.92% 75.90% 2016 1.2049% $ 97,831,902 $ 1,277,788 $ 99,109,690 $ 29,190,842 339.52% 68.91% 2015 1.2011% $ 62,247,236 N/A $ 62,247,236 $ 26,621,071 233.83% 78.19%

This schedule is intended to show information for ten years. Additional years will be displayed as they become available. The measurement date for each year is June 30. N/A - Not applicable


57

Contributions in Relation to the Contributions as a

Statutorily Required Statutorily Required Contribution Percentage of Fiscal Year Contribution Contribution Deficiency (Excess) Covered Payroll Covered Payroll

Ending (a) (b) (a-b) (d) (b/d) 2018 $ 4,958,119 $ 4,958,119 $ - $ 37,073,367 13.37% 2017 $ 4,678,957 $ 4,678,957 $ - $ 33,457,374 13.98% 2016 $ 5,538,261 $ 5,538,261 $ - $ 31,008,224 17.86% 2015 $ 5,320,452 $ 5,320,452 $ - $ 28,242,029 18.84%

This schedule is intended to show information for ten years. Additional years will be displayed as they become available. The Park and Recreation Board year-end is December 31.

Statutorily required contributions include additional contributions as required by State Statute which affects actual contributions as a percentage of covered payroll.


A-7

MINNEAPOLIS PARK AND RECREATION BOARD SCHEDULE OF CONTRIBUTIONS

PUBLIC EMPLOYEES GENERAL EMPLOYEES RETIREMENT PLAN DECEMBER 31, 2018

58

A-8

MINNEAPOLIS PARK AND RECREATION BOARD SCHEDULE OF PROPORTIONATE SHARE OF NET PENSION LIABILITY

PUBLIC EMPLOYEES POLICE AND FIRE PLAN DECEMBER 31, 2018

Employer's Employer's Proportionate Share of

Employer's Proportionate Share the Net Pension Plan Fiduciary Net Proportionate Share (Amount) of the Net Liability (Asset) as a Position as a (Percentage) of the Pension Liability Employer's Percentage of its Percentage of the

Measurement Net Pension Liability (Asset) Covered Payroll Covered Payroll Total Pension Date (Asset) (a) (b) (a/b) Liability 2018 0.341% $ 3,511,412 $ 3,590,432 97.80% 88.84% 2017 0.297% $ 4,003,676 $ 3,074,906 130.20% 85.43% 2016 0.304% $ 12,200,049 $ 2,925,828 416.98% 63.88% 2015 0.308% $ 3,499,601 $ 2,850,764 122.76% 86.61%

This schedule is intended to show information for ten years. Additional years will be displayed as they become available. The measurement date for each year is June 30.


59

A-9

MINNEAPOLIS PARK AND RECREATION BOARD SCHEDULE OF CONTRIBUTIONS

PUBLIC EMPLOYEES POLICE AND FIRE PLAN DECEMBER 31, 2018

Contributions in Relation to the

Statutorily Statutorily Contribution Contributions as a Required Required Deficiency Employee Percentage of

Fiscal Year Contribution Contribution (Excess) Payroll Employee Payroll Ending (a) (b) (a-b) (d) (b/d) 2018 $ 534,399 $ 534,399 $ - $ 3,292,886 16.23% 2017 $ 560,511 $ 560,511 $ - $ 3,459,944 16.20% 2016 $ 497,630 $ 497,630 $ - $ 3,067,892 16.22% 2015 $ 472,805 $ 472,805 $ - $ 2,918,551 16.20%

This schedule is intended to show information for ten years. Additional years will be displayed as they become available. The Park and Recreation Board year-end is December 31.

Statutorily required contributions include additional contributions as required by State Statute which affects actual contributions as a percentage of covered payroll.


60

A-10

MINNEAPOLIS PARK AND RECREATION BOARD SCHEDULE OF CHANGES IN TOTAL OPEB LIABILITY AND RELATED RATIOS

OTHER POSTEMPLOYMENT BENEFITS DECEMBER 31, 2018

2018 Total OPEB Liability Service cost $ 73,563 Interest cost 46,638 Benefit payments (104,000)

Net change in total OPEB liability $ 16,201

Total OPEB Liability - Beginning 1,391,293

Total OPEB Liability - Ending $ 1,407,494

Covered-employee payroll $ 30,837,088

Net OPEB liability (asset) as a percentage of covered-employee payroll 4.56%

Percentage of proportionate share of the collective total liability 4.01%

This schedule is intended to show information for ten years. Additional years will be displayed as they become available.


61

MINNEAPOLIS PARK AND RECREATION BOARD NOTES TO THE REQUIRED SUPPLEMENTARY INFORMATION

December 31, 2018

Note 1 - Budgetary Data Annual budgets are adopted on a basis consistent with generally accepted accounting principles for the general and major special revenue funds within the governmental funds grouping. Capital projects funds adopt project-length budgets.

The Park and Recreation Board of the City of Minneapolis follows these procedures in establishing the budgetary data reflected in the financial statements.

1. The Superintendent of Parks submits to the Park and Recreation Board a proposed operating budget for the fiscal year commencing the following January 1.

2. Public hearings are conducted to obtain taxpayers' comments. 3. The budget is legally enacted through passage of a resolution.

The Park and Recreation Board adopts an annual budget, and during the budget year, supplemental appropriations are authorized. The amounts shown in the financial statements under columns headed "Original Budget" represent the January 1 adopted budget. The amounts shown in the financial statements under columns headed "Final Budget" represent the budget after all revisions have been made. The legal level of budgetary control is at the fund level. The Park and Recreation Board approves budgetary amendments at the fund level. Appropriations lapse at year-end.

Original Total Revised Budget Revisions Budget

General Fund $ 81,111,669 $ - $ 81,111,669 Museum County-Wide Levy Special Revenue Fund $ 12,777,854 $ 192,086 $ 12,969,940 Park Grant and Dedicated Revenue Special Revenue Fund $ 1,330,600 $ 1,623,582 $ 2,954,182 Tree Preservation and Reforestation Special Revenue Fund $ 1,777,804 $ - $ 1,777,804 Park Dedication Fees Special Revenue Fund $ - $ 500,000 $ 500,000

The following funds had expenditures in excess of budget for the year ending 12/31/2018:

Expenditures Budget Excess Park Grant and Dedicated Revenue Special Revenue Fund $ 1,292,558 $ 887,358 $ (405,200)

Note 2 - Other Postemployment Benefits Plan

A) Other Postemployment Benefits Funded Status In 2018, the Minneapolis Park and Recreation Board implemented Governmental Accounting Standards Board (GASB) Statement No. 75, Accounting and Financial Reporting for Postemployment Benefits Other Than Pensions. See Note 10 in the notes to the financial statements for additional information regarding the Park Board’s other postemployment benefits.

B) Employer Contributions to Other Postemployment Benefits Assets have not been accumulated in a trust that meets the criteria in paragraph four of GASB Statement No. 75 to pay related benefits.

62

Note 2 - Other Post-Employment Benefits Plan B) Employer Contributions to Other Postemployment Benefits (Continued)

The following changes in actuarial assumptions occurred in 2018:

The discount rate was changed from 3.00% to 3.50%.

Note 3 - Defined Benefit Pension Plans – Changes in Significant Plan Provisions, Actuarial Methods, and Assumptions

The following changes were reflected in the valuation performed on behalf of the Public Employees Retirement Association for the year ended June 30:

General Employees Retirement Plan

2018

The mortality projection scale was changed from MP-2015 to MP-2017. The assumed post-retirement benefit increase rate was changed from 1.0 percent per year through 2044 and

2.50 percent per year thereafter, to 1.25 percent per year.

2017

The Combined Service Annuity (CSA) loads were changed from 0.8 percent for active members and 60 percent for vested and non-vested deferred members (30 percent for deferred Minneapolis Employees Retirement Fund members). The revised CSA loads are now 0.0 percent for active member liability, 15.0 percent for vested deferred member liability and 3.0 percent for non-vested deferred member liability.

The assumed post-retirement benefit increase rate was changed from 1.00 percent per year for all years to 1.00 percent per year through 2044 and 2.5 percent per year thereafter.

Minneapolis Employees Retirement Fund plan provisions changed the employer supplemental contribution to $21,000,000 in calendar years 2017 and 2018 and returns to $31,000,000 through calendar year 2031. The State’s required contribution is $16,000,000 in PERA’s fiscal years 2018 and 2019 and returns to $6,000,000 annually through calendar year 2031.

2016

The assumed post-retirement benefit increase rate was changed from 1.00 percent per year through 2035 and 2.50 percent per year thereafter, to 1.00 percent for all future years.

The assumed investment rate was changed from 7.9 percent to 7.5 percent. The single discount rate was also changed from 7.90 percent to 7.50 percent.

Other assumptions were changed pursuant to the experience study dated June 30, 2015. The assumed payroll growth and inflation were decreased by 0.25 percent. Payroll growth was reduced from 3.50 percent to 3.25 percent. Inflation was reduced from 2.75 percent to 2.50 percent.

Public Employees Police and Fire Plan

2018

The mortality projection scale was changed from MP-2016 to MP-2017. As set by statute, the assumed post-retirement benefit increase was changed to 1.0 percent for all years, with

no trigger. An end date of July 1, 2048 was added to the existing $9.0 million state contribution. Additionally, annual state

aid will equal $4.5 million in fiscal years 2019 and 2020, and $9.0 million thereafter, until the plan reaches 100 percent funding, or July 1, 2048, if earlier.

63

Note 3 - Defined Benefit Pension Plans – Changes in Significant Plan Provisions, Actuarial Methods, and Assumptions Public Employees Police and Fire Plan

2018 (Continued)

Member contributions were changed effective January 1, 2019 and January 1, 2020 from 10.80 percent to 11.30 and 11.80 percent of pay, respectively. Employer contributions were changed effective January 1, 2019 and January 1, 2020 from 16.20 percent to 16.95 and 17.70 percent of pay, respectively. Interest credited on member contributions decreased from 4.00 percent to 3.00 percent, beginning July 1, 2018.

Deferred augmentation was changed to 0.00 percent, effective January 1, 2019. Augmentation that has already accrued for deferred members will still apply.

Actuarial equivalent factors were updated to reflect revised mortality and interest assumptions.

2017

Assumed salary increase were changed as recommended in the June 30, 2016 experience study. The net effect is proposed rates that average 0.34 percent lower than the previous rates.

Assumed rates of retirement were changed, resulting in fewer retirements. The Combined Service Annuity (CSA) load was 30 percent for vested and non-vested deferred members. The

CSA has been changed to 33 percent for vested members and 2 percent for non-vested members. The base mortality table for healthy annuitants was changed from the RP-2000 fully generational table to the

RP-2014 fully generational table (with a base year of 2006), with male rates adjusted by a factor of 0.96. The mortality improvement scale was changed from Scale AA to Scale MP-2016. The base mortality table for disabled annuitants was changed from the RP-2000 disabled mortality table to the mortality tables assumed for healthy retirees.

Assumed termination rates were decreased to 3.0 percent for the first three years of service. Rates beyond the select period of three years were adjusted, resulting in more expected terminations overall.

Assumed percentage of married female members was decreased from 65 percent to 60 percent. Assumed age difference was changed from separate assumptions for male members (wives assumed to be three

years younger) and female members (husbands assumed to be four years older) to the assumption that males are two years older than females.

The assumed percentage of female members electing Joint and Survivor annuities was increased. The assumed post-retirement benefit increase rate was changed from 1.00 percent for all years to 1.00 percent

per year through 2064 and 2.50 percent thereafter. The single discount rate was changed from 5.60 per annum to 7.50 percent per annum.

2016

The assumed post-retirement benefit increase rate was changed from 1.00 percent per year through 2037 and 2.50 percent per year thereafter, to 1.00 percent for all future years.

The assumed investment rate was changed from 7.9 percent to 7.5 percent. The single discount rate was also changed from 7.90 percent to 5.60 percent.

The assumed payroll growth and inflation were decreased by 0.25 percent. Payroll growth was reduced from 3.50 percent to 3.25 percent. Inflation was reduced from 2.75 percent to 2.50 percent.

64

SUPPLEMENTARY INFORMATION

NONMAJOR GOVERNMENTAL FUNDS

Special Revenue Fund

Special revenue funds are used to account and report the proceeds of specific revenue sources that are restricted or committed to expenditures for specified purposes.

Minneapolis Parks Special Revenue Fund – This fund accounts for revenue received that is earmarked for a specific purpose and has the contractual requirement to earn interest.

Capital Projects Fund

Capital projects funds are used to account for and report financial resources that are restricted, committed, or assigned to expenditure for capital outlays, including the acquisition or construction of capital facilities and other capital assets. Capital projects funds exclude capital-related outflows financed by proprietary funds.

Park Acquisition and Improvement Capital Projects Fund – This fund accounts for special assessments for parkway and sidewalk improvements and the removal of diseased trees from private residential property financed by private property assessments.

B-1 MINNEAPOLIS PARK AND RECREATION BOARD

COMBINING BALANCE SHEET OTHER GOVERNMENTAL FUNDS

December 31, 2018

Park

ASSETS Cash and Cash Equivalents Receivables -

Accounts Accrued Interest Special Assessments Total Assets

Minneapolis Acquisition Parks and Improvement

Special Revenue Capital Projects Fund Fund

$ 1,224,855 $ 1,054,689

- 12,51910,385 -

- 176,051$ 1,235,240 $ 1,243,259

$

$

Total Other

Governmental Funds

2,279,544

12,519 10,385

176,051 2,478,499

LIABILITIES, DEFERRED INFLOWS OF RESOURCES AND FUND BALANCES Liabilities: Payables -

Accounts Due to -

Other Funds Total Liabilities

$ - $ 41,604

269,615 -269,615 41,604

$ 41,604

269,615 311,219

Deferred Inflows of Resources: Unavailable Revenue 2,924 176,051 178,975

Fund Balances: Restricted for:

Projects and Grant Programs Assigned to:

Special Trust Forestry and Tree Disease

Total Fund Balances

950,297

12,404 -

962,701

-

-1,025,6041,025,604

950,297

12,404 1,025,604

1,988,305

Total Liabilities, Deferred Inflows of Resources and Fund Balances $ 1,235,240 $ 1,243,259 $ 2,478,499

65

B-2 MINNEAPOLIS PARK AND RECREATION BOARD

COMBINING STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES

OTHER GOVERNMENTAL FUNDS Year Ended December 31, 2018

Park Minneapolis Acquisition Total

Parks and Improvement Other Special Revenue Capital Projects Governmental

Fund Fund Funds REVENUES Intergovernmental $ - $ 300,000 $ 300,000 Charges for Services and Sales - 24 24 Special Assessments - 347,347 347,347 Investment Earnings 15,611 - 15,611 Miscellaneous 2,708,191 - 2,708,191

Total Revenues 2,723,802 647,371 3,371,173

EXPENDITURES Current Culture and Recreation 1,114 - 1,114 Capital Outlay - 556,583 556,583

Total Expenditures 1,114 556,583 557,697

Excess of Revenues Over (Under) Expenditures 2,722,688 90,788 2,813,476 .

OTHER FINANCING SOURCES (USES) Transfers Out-

Other Funds (1,965,220) - (1,965,220) Total Other Financing Sources (Uses) (1,965,220) - (1,965,220)

Net Change in Fund Balance 757,468 90,788 848,256

FUND BALANCE - JANUARY 1 205,233 934,816 1,140,049

FUND BALANCE - DECEMBER 31 $ 962,701 $ 1,025,604 $ 1,988,305

66

ENTERPRISE FUND

Park Operating Fund This fund accounts for the operations of Minneapolis golf courses, refectories, ice arenas, parade complex, and similar recreational activities.

C-1 MINNEAPOLIS PARK AND RECREATION BOARD

SCHEDULE OF CHANGES IN NET POSITION RESERVED FOR RENEWAL AND REPLACEMENT

PARK OPERATING ENTERPRISE FUND For the Year Ended December 31, 2018

OPERATING INCOME (LOSS)

ADDITIONS: Depreciation Non-Operating Revenues:

Other Non-Operating Revenues Proceeds From Sales of Capital Assets

$

Reserve For Renewal &

Replacement

1,787,073

1,001,894

71,807 1,045

DEDUCTIONS: Purchase of Capital Assets - Capitalized Other Non-Cash Items:

Change in Compensated Absences Change in Other Post employment Benefits, Deferred Outlows - OPEB Change in Net Pension Liability, Deferred Inflows & Outflows - Pensions

Non-Operating Expenses: Note Principal and Interest Payment Repayment of Capital Advance Debt Service Payment Transfer to General Fund Transfer to Capital Projects Other Non-Operating Expenses

TOTAL INCREASE (DECREASE)

BALANCE - JANUARY 1

BALANCE - DECEMBER 31 $

(270,271)

27,302 (10,889) 219,583

(67,799) (140,050) (522,038)

(25,000) (600,000)

(55,760)

1,416,897

1,371,911

2,788,808

67

REVENUES EXPENSES INCOME/(LOSS) PARK REFECTORIES

BDE MAKA SKA $ 72,865 $ 39,345 $ 33,520 HARRIET 150,327 24,491 125,836 MINNEHAHA 421,538 79,359 342,179 NOKOMIS 96,648 2,637 94,011 PERMITS & VENDING 1,157,176 727,653 429,523 COMP ABS, POST EMP BEN & PEN LIAB ADJ - 10,674 (10,674)

TOTAL PARK REFECTORIES 1,898,554 884,159 1,014,395

SPECIAL FACILITIES PARADE COMPLEX 294,255 183,471 110,784 PARADE ICE COMPLEX 1,296,627 1,434,835 (138,208) NORTHEAST ICE ARENA 76,506 266,496 (189,990) COLUMBIA MANOR 72,915 25,218 47,697 COMMERCIAL PARKING 931,137 56,947 874,190 REGIONAL PARKING LOTS 1,183,458 464,508 718,950 NICOLLET ISLAND 536,318 154,996 381,322 COMP ABS, POST EMP BEN & PEN LIAB ADJ - 54,435 (54,435)

TOTAL SPECIAL FACILITIES 4,391,216 2,640,906 1,750,310

GOLF COURSES (INCL REFECTORIES) COLUMBIA 1,040,678 1,248,039 (207,361) COLUMBIA LEARNING CENTER 135,239 50,105 85,134 GROSS 1,290,826 1,382,047 (91,221) HIAWATHA 848,701 1,228,581 (379,880) HIAWATHA LEARNING CENTER 83,797 35,890 47,907 MEADOWBROOK 1,076,350 1,005,826 70,524 THEODORE WIRTH 805,781 1,133,299 (327,518) THEO WIRTH PAR-3 53,216 54,062 (846) FORT SNELLING 282,495 518,017 (235,522) COMP ABS, POST EMP BEN & PEN LIAB ADJ - 191,322 (191,322)

TOTAL GOLF COURSES 5,617,083 6,847,188 (1,230,105)

MISCELLANEOUS ACTIVITIES BOATS 272,002 27,793 244,209 BIKE RENTALS 48,104 - 48,104 WINTER PROGRAMS - 37,164 (37,164) JUNIOR GOLF PROGRAMS 4,795 - 4,795 COMP ABS, POST EMP BEN & PEN LIAB ADJ - 7,471 (7,471)

TOTAL MISCELLANEOUS ACTIVITIES 324,901 72,428 252,473

TOTAL $ 12,231,754 $ 10,444,681

NET OPERATING INCOME $ 1,787,073

C-2 MINNEAPOLIS PARK AND RECREATION BOARD

SCHEDULE OF OPERATING INCOME - BY PROJECT PARK OPERATING ENTERPRISE FUND


OPERATING

68

INTERNAL SERVICE FUNDS

Park Internal Services Fund This fund accounts for the rental of equipment and the information technology services provided to other Park and Recreation Board Funds.

Park Self-Insurance Fund This fund accounts for the commercial insurance and self-insurance activities of the Park and Recreation Board. These activities include workers’ compensation, general liability, police professional liability, and property insurance.

D-1 MINNEAPOLIS PARK AND RECREATION BOARD

COMBINING STATEMENT OF NET POSITION ALL INTERNAL SERVICE FUNDS

December 31, 2018

Park Park Total Internal Self-Insurance Internal

Services Fund Fund Service Funds ASSETS AND DEFERRED OUTFLOWS OF RESOURCES Assets: Cash and Cash Equivalents $ 6,144,560 $ 2,468,334 $ 8,612,894 Cash with Escrow Agent - 95,257 95,257 Receivables -

Accounts - 12,540 12,540 Capital Advances - 4,760,350 4,760,350 Prepaid Expense - 69,278 69,278 Due From -

Other Funds 180 - 180 Total Current Assets 6,144,740 7,405,759 13,550,499

Non-Current Assets Net Capital Assets 6,100,250 - 6,100,250

Total Assets 12,244,990 7,405,759 19,650,749

Deferred Outflows of Resources: Deferred Outflows - Pensions 438,749 25,911 464,660 Deferred Outflows - Other Post Employment Benefits 5,817 - 5,817

Total Deferred Outflows of Resources 444,566 25,911 470,477

Total Assets and Deferred Outflows of Resources $ 12,689,556 $ 7,431,670 $ 20,121,226

LIABILITIES, DEFERRED INFLOWS OF RESOURCES AND NET POSITION Current Liabilities : Payables -

Salaries $ 93,318 $ 4,013 $ 97,331 Accounts 392,750 154,324 547,074 Intergovernmental 4,392 - 4,392 Compensated Absences Payable 42,037 2,092 44,129

Due To -Other Funds 1,045 - 1,045 Total Current Liabilities 533,542 160,429 693,971

Long-Term Liabilities: Net Pension Liability 2,747,947 155,693 2,903,640 Workers' Compensation Claims Pending - 3,218,303 3,218,303 General Liability Claims Pending - 1,591,972 1,591,972 Compensated Absences Payable 98,087 4,880 102,967 Other Post Employment Benefits Payable 71,215 - 71,215 Total Long-Term Liabilities 2,917,249 4,970,848 7,888,097

Total Liabilities 3,450,791 5,131,277 8,582,068

Deferred Inflows of Resources: Deferred Inflows - Pensions 413,650 23,080 436,730

Net Position: Net Investment in Capital Assets 6,100,250 - 6,100,250 Unrestricted 2,724,865 2,277,313 5,002,178

Total Net Position 8,825,115 2,277,313 11,102,428

Total Liabilities, Deferred Inflows of Resources and Net Position $ 12,689,556 $ 7,431,670 $ 20,121,226

69


COMBINING STATEMENT OF REVENUES, EXPENSES AND CHANGES IN NET POSITION ALL INTERNAL SERVICE FUNDS


Park Park Total Internal Services Self - Insurance Internal Service

Fund Fund Funds OPERATING REVENUES

Billings to Departments $ 7,606,620 $ 2,173,789 $ 9,780,409

OPERATING EXPENSES Personnel Services 1,966,426 97,972 2,064,398 Contractual Services 1,258,291 1,855,457 3,113,748 Materials and Supplies 1,607,349 273,585 1,880,934 Depreciation on Acquired Property 1,600,180 - 1,600,180 Benefits 1,080,657 39,438 1,120,095

Total Operating Expenses 7,512,903 2,266,452 9,779,355

Operating Income (Loss) 93,717 (92,663) 1,054

NON-OPERATING REVENUES (EXPENSES) Gain (Loss) on Disposal of Capital Assets 151,883 - 151,883 Sale of Scrap 45,401 - 45,401 Damages/Losses Recovered 23,928 180,247 204,175 Other Non-Operating Revenues 23,656 1,081 24,737

Total Non-Operating Revenues (Expenses) 244,868 181,328 426,196

Income (Loss) before Contributions and Transfers 338,585 88,665 427,250

Capital Contributions 61,752 - 61,752 Transfers Out-

Other Funds - (192,016) (192,016)

CHANGE IN NET POSITION 400,337 (103,351) 296,986

NET POSITION - JANUARY 1, Restated (Note 2.O.) 8,424,778 2,380,664 10,805,442

NET POSITION - DECEMBER 31 $ 8,825,115 $ 2,277,313 $ 11,102,428

70


COMBINING STATEMENT OF CASH FLOWS ALL INTERNAL SERVICE FUNDS


Park Park Total Internal Services Self - Insurance Internal Service

Fund Fund Funds Cash Flows from Operating Activities

Cash Received from Interfund Services Provided $ 7,622,370 $ 2,173,789 $ 9,796,159 Cash Received from Customers - 4,761 4,761 Cash Paid to Suppliers for Goods and Services (2,640,152) (1,499,760) (4,139,912) Cash Paid to Employees for Services (2,844,898) (129,572) (2,974,470) Other Non-Operating Revenues 23,656 181,328 204,984

Net Cash Provided by (Used for) Operating Activities 2,160,976 730,546 2,891,522

Cash Flows from Non-Capital Financing Activities Other Payments Received 23,928 - 23,928 Proceeds From Sale of Scrap 45,401 - 45,401 Repayment of Advances Made by Other Funds 3,100,000 4,170,050 7,270,050 Transfers to Other Funds - (192,016) (192,016) Payment of Advances Made to Other Funds - (3,040,000) (3,040,000)

Net Cash Provided by (Used for) Non-Capital Financing Activities 3,169,329 938,034 4,107,363

Cash Flows from Capital and Related Financing Activities Proceeds from Sale of Capital Assets 151,883 - 151,883 Acquisition of Property, Plant and Equipment (2,239,846) - (2,239,846)

Net Cash Provided by (Used for) Capital and Related Financing Activities (2,087,963) - (2,087,963)

Net Increase (Decrease) in Cash and Cash Equivalents 3,242,342 1,668,580 4,910,922

Cash and Cash Equivalents - January 1 2,902,218 895,011 3,797,229

Cash and Cash Equivalents - December 31 $ 6,144,560 $ 2,563,591 $ 8,708,151

Reconciliation of Operating Income (Loss) to Net Cash Provided by (Used for) Operating Activites

Operating Income (Loss) $ 93,717 $ (92,663) $ 1,054

Adjustments to Reconcile Operating Income to Net Cash Provided by Operating Activities:

Depreciation on Acquired Property 1,600,180 - 1,600,180 (Increase) Decrease in Accounts Receivable 14,705 4,761 19,466 (Increase) Decrease in Prepaid Expense - (4,906) (4,906) (Increase) Decrease in Deferred Outflows of Resources - Pensions 256,737 13,323 270,060 (Increase) Decrease in Deferred Outflows of Resources - OPEB (5,817) - (5,817) (Increase) Decrease in Due from Other Funds (180) - (180) Increase (Decrease) in Salaries Payable 40,655 (930) 39,725 Increase (Decrease) in Accounts Payable 221,870 (34,979) 186,891 Increase (Decrease) in Intergovernmental Payable 3,618 - 3,618 Increase (Decrease) in Due to Other Funds 1,045 - 1,045 Increase (Decrease) in Workers' Compensation Claims Pending - 483,819 483,819 Increase (Decrease) in General Liability Claims Pending - 185,348 185,348 Increase (Decrease) in Other Post Employment Benefits Payable 821 - 821 Increase (Decrease) in Compensated Absences Payable 2,825 266 3,091 Increase (Decrease) in Deferred Inflows of Resources - Pensions 56,543 2,933 59,476 Increase (Decrease) in Net Pension Liability (149,399) (7,754) (157,153) Other Non-Operating Revenues 23,656 181,328 204,984

Total Adjustments 2,067,259 823,209 2,890,468 Net Cash Provided by (Used in) Operating Activities $ 2,160,976 $ 730,546 $ 2,891,522

Non-Cash Capital and Related Financing Activities: Capital Contributions $ 61,752 $ - $ 61,752

71


COMBINING SCHEDULE OF REVENUES, EXPENSES AND CHANGES IN NET POSITION

ALL INTERNAL SERVICE FUNDS - BY MAJOR PROGRAM For the Year Ended December 31, 2018

OPERATING REVENUES: Charges For Services and Sales -

Insurance Premiums Information Technology Services Total Charges For Services and Sales

Information Technology

$ -2,012,764 2,012,764

Workers Mobile Comp. &

Equipment Liability

$ - $ 2,173,789 - -- 2,173,789

$

Total

2,173,789 2,012,7644,186,553

Rents -Mobile Equipment - 5,593,856 - 5,593,856

Total Operating Revenues 2,012,764 5,593,856 2,173,789 9,780,409

OPERATING EXPENSES: Information Technology Services Mobile Equipment Workers' Compensation General Liability

Total Operating Expenses

2,169,530 ---

2,169,530

-5,343,373

--

5,343,373

--

1,379,641 886,811

2,266,452

2,169,530 5,343,373 1,379,641

886,811 9,779,355

Operating Income (Loss) (156,766) 250,483 (92,663) 1,054

NON-OPERATING REVENUES (EXPENSES) Gain (Loss) on Disposal of Capital Assets Sale of Scrap Damage Claims Other Non-Operating Revenues

Total Non-Operating Revenues (Expenses)

---

8,706 8,706

151,883 45,401 23,92814,950

236,162

--

180,247 1,081

181,328

151,883 45,401

204,175 24,737

426,196

Income (Loss) before Contributions and Transfers (148,060) 486,645 88,665 427,250

Capital Contributions Transfers Out

--

61,752 -

-(192,016)

61,752 (192,016)

CHANGE IN NET POSITION (148,060) 548,397 (103,351) 296,986

NET POSITION - JANUARY 1, Restated (364,794) 8,789,572 2,380,664 10,805,442

NET POSITION - DECEMBER 31 $ (512,854) $ 9,337,969 $ 2,277,313 $ 11,102,428

72


SCHEDULE OF CHANGES IN NET POSITION RESERVED FOR SPECIFIC PURPOSES

INTERNAL SERVICE FUNDS For the Year Ended December 31, 2018

Purchase of Purchase

Information of Technology Mobile

Systems Equipment

OPERATING INCOME (LOSS) $ (156,766) $ 250,483

ADDITIONS: Depreciation 23,743 1,576,435 Non-Operating Revenues: Sale of Equipment - 151,883 Sale of Scrap - 45,401 Other Miscellaneous Revenues 8,706 38,878 (Increase) Decrease in Deferred Outflows - Pensions 107,316 149,421 (Increase) Decrease in Deferred Outflows - OPEB (2,432) (3,385) Increase (Decrease) in Other Post Employment Benefits Payable 343 478 Increase (Decrease) in Compensated Absences Payable 1,181 1,644 Increase (Decrease) in Deferred Inflows - Pensions 23,635 32,908 Increase (Decrease) in Net Pension Liability (62,449) (86,950)

DEDUCTIONS: Purchase of Mobile Equipment (37,955) (2,201,891)

TOTAL INCREASE (DECREASE) (94,678) (44,695)

BALANCE - JANUARY 1 722,503 4,666,186

BALANCE - DECEMBER 31 $ 627,825 $ 4,621,491

73


74

SCHEDULE OF INTERGOVERNMENTAL REVENUE

Schedule of Intergovernmental Revenue The Schedule of Intergovernmental revenue presents the various sources of revenue received from Federal, State and Local entities by the Minneapolis Park and Recreation Board.

E-1 MINNEAPOLIS PARK AND RECREATION BOARD SCHEDULE OF INTERGOVERNMENTAL REVENUE


Governmental Shared Revenue Funds

State Local Government Aid $ 9,346,869 PERA rate increase aid 73,290

Total Shared Revenue $ 9,420,159

Payments Local

County grants $ 994,445 Mississippi Watershed Management Organization 1,527,261 Minneahaha Creek Watershed District 49,943 Metropolitan Council 13,212,829 Minnesota Historical Society 10,000 Minneapolis Public Schools 650,000 City of Minneapolis 8,902,687 Other Local Payments 207,204 Payments in Lieu of Tax/Rent 95,444

Total Local $ 25,649,813

Grants State

Department of Employment and Economic Development $ 273,233 Department of Natural Resources 47,880 Arts Board 36,409 Peace Officer Standards and Training (POST) Board 31,581

Total State Grants $ 389,103

Federal Department of Justice 15,000 Department of Transportation 25,075

Total Federal Grants $ 40,075

Total State and Federal Grants $ 429,178

Total Intergovernmental Revenue $ 35,499,150

75


76

STATISTICAL SECTION

77

Sche

dule

1

Min

neap

olis

Par

k an

d Re

crea

tion

Boar

d G

over

nmen

t-W

ide

Expe

nses

by

Func

tion

Last

Ten

Fisc

al Y

ears

De

cem

ber 3

1, 2

018

Cultu

re a

nd

Park

To

tal

Fisc

al Y

ear

Recr

eatio

n En

terp

rise

Prim

ary

Gove

rnm

ent

2009

$

81,1

51,1

65

$ 13

,003

,277

$

94,1

54,4

42

2010

80

,016

,571

13

,720

,047

93

,736

,618

20

11

74,3

48,1

97

13,9

74,9

31

88,3

23,1

28

2012

76

,510

,203

14

,492

,481

91

,002

,684

20

13

83,8

23,2

12

9,79

1,10

3 93

,614

,315

20

14

86,8

63,3

90

10,3

52,4

84

97,2

15,8

74

2015

10

0,72

7,29

7 11

,109

,995

11

1,83

7,29

220

16

110,

996,

993

11,2

55,6

81

122,

252,

674

2017

11

4,09

9,92

2 10

,157

,125

12

4,25

7,04

620

18

117,

852,

548

11,0

32,4

12

128,

884,

960

Sour

ce:

Min

neap

olis

Park

and

Rec

reat

ion

Boar

d (UN

AUDI

TED)

Sche

dule

2

Min

neap

olis

Par

k an

d Re

crea

tion

Boar

d Go

vern

men

t-W

ide

Reve

nues

Last

Ten

Fisc

al Y

ears

De

cem

ber 3

1, 2

018

78

Prog

ram

Rev

enue

s G

ener

al R

even

ues

Ope

ratin

g Ca

pita

l U

nres

tric

ted

Unr

estr

icte

d G

ain

on

Tota

l Ch

arge

s for

G

rant

s and

G

rant

s and

G

rant

s and

In

tere

st a

nd

Sale

of

Prim

ary

Fisc

al Y

ear

Serv

ices

Co

ntrib

utio

ns

Cont

ribut

ions

Ta

xes

Cont

ribut

ions

In

vest

men

t Ear

ning

s Ca

pita

l Ass

et

Gov

ernm

ent

2009

$

17,5

07,0

60

$ 3,

753,

338

$ 10

,963

,674

$

54,4

68,9

35

$ 11

,101

,324

$

-$

-$

97,7

94,3

31

2010

18

,862

,149

2,

710,

838

9,70

7,41

0 56

,552

,350

8,

494,

370

--

96,3

27,1

17

2011

17

,902

,853

2,

861,

755

16,2

70,5

66

58,3

22,0

09

8,73

0,42

7 -

-10

4,08

7,61

020

12

18,6

40,5

14

2,61

3,35

1 9,

434,

268

58,1

88,7

81

7,79

7,82

0 -

-96

,674

,734

20

13

18,7

61,9

49

6,11

5,80

9 15

,672

,266

59

,395

,406

7,

570,

039

(378

) 15

3,57

5 10

7,66

8,66

620

14

18,8

18,8

71

4,52

8,97

8 10

,326

,767

60

,433

,180

8,

977,

319

1,53

4 54

,952

10

3,14

1,60

120

15

20,9

92,4

47

4,02

7,53

3 18

,844

,133

62

,906

,396

9,

170,

507

1,17

2 18

1,91

9 11

6,12

4,10

720

16

24,5

91,4

57

5,58

6,64

8 21

,261

,906

65

,767

,797

9,

539,

349

21,8

87

86,9

87

126,

856,

031

2017

23

,865

,502

3,

903,

079

46,2

08,8

72

71,4

19,8

13

9,25

2,43

1 72

,161

61

,980

15

4,78

3,83

820

18

29,9

18,2

15

3,31

8,62

4 22

,484

,699

74

,564

,055

10

,217

,667

28

3,21

6 15

1,88

3 14

0,93

8,35

9

Sour

ce:

Min

neap

olis

Park

and

Rec

reat

ion

Boar

d

(UN

AUDI

TED)

79

Sche

dule

3

Min

neap

olis

Par

k an

d Re

crea

tion

Boar

d Ge

nera

l Fun

d Re

venu

es b

y So

urce

and

Exp

endi

ture

s by

Func

tion

Last

Ten

Fisc

al Y

ears

De

cem

ber 3

1, 2

018

2009

20

10

2011

20

12

2013

20

14

2015

20

16

2017

20

18

Reve

nue

Taxe

s $

42,3

00,3

17

$ 44

,358

,084

$

46,6

46,4

84

$ 47

,096

,192

$

49,0

73,4

49

$ 49

,071

,884

$

50,9

85,4

36

$ 52

,757

,423

$

57,6

00,6

85

$ 59

,920

,817

In

terg

over

nmen

tal

12,5

33,8

27

9,34

5,08

2 10

,284

,464

9,

310,

330

10,3

20,4

27

10,3

06,6

19

10,5

79,9

65

11,8

26,4

43

10,1

79,5

29

10,2

72,6

75

Char

ges f

or S

ervi

ces

1,06

9,63

6 2,

130,

780

1,68

0,91

6 1,

718,

922

6,63

4,91

7 7,

006,

509

7,41

7,47

1 7,

684,

066

8,43

1,63

1 9,

229,

522

Lice

nses

and

Per

mits

18

3,04

1 24

0,66

1 20

8,45

7 25

0,97

4 44

4,36

4 31

3,88

6 22

0,52

8 20

5,73

1 19

2,02

7 24

5,15

2 Fi

nes a

nd F

orfe

its

560,

131

396,

068

483,

535

321,

106

344,

062

368,

911

300,

343

311,

885

270,

695

318,

764

Spec

ial A

sses

smen

ts

--

--

--

--

13,1

47

146

Inve

stm

ent E

arni

ngs

--

--

--

--

-68

M

iscel

lane

ous

929,

001

1,23

9,59

6 50

4,60

1 26

9,54

4 16

2,96

9 12

1,95

6 17

2,20

2 17

4,79

4 14

9,65

9 50

0,24

4

Tota

l Rev

enue

s $

57,5

75,9

53

$ 57

,710

,271

$

59,8

08,4

57

$ 58

,967

,068

$

66,9

80,1

88

$ 67

,189

,765

$

69,6

75,9

45

$ 72

,960

,342

$

76,8

37,3

73

$ 80

,487

,388

Expe

nditu

res

Curr

ent:

Cul

ture

and

Rec

reat

ion

$ 54

,189

,728

$

56,0

14,9

55

$ 54

,635

,175

$

54,1

42,4

02

$ 60

,734

,136

$

62,6

82,0

47

$ 65

,325

,323

$

67,8

82,2

52

$ 74

,922

,963

$

77,8

07,4

21

Capi

tal O

utla

y -

--

436,

668

--

--

--

Debt

Ser

vice

Prin

cipa

l Ret

irem

ent

--

--

--

--

-35

,670

Int

eres

t and

Fisc

al C

harg

es

--

--

--

--

-13

,432

Tota

l Exp

endi

ture

s $

54,1

89,7

28

$ 56

,014

,955

$

54,6

35,1

75

$ 54

,579

,070

$

60,7

34,1

36

$ 62

,682

,047

$

65,3

25,3

23

$ 67

,882

,252

$

74,9

22,9

63

$ 77

,856

,523

Sour

ce:

Min

neap

olis

Park

and

Rec

reat

ion

Boar

d

(UN

AUDI

TED)

80

Sche

dule

4Ci

ty o

f Min

neap

olis

As

sess

ed V

alue

and

Act

ual V

alue

of T

axab

le P

rope

rty

Last

Ten

Fis

cal Y

ears

(in

thou

sand

s of d

olla

rs)

Dece

mbe

r 31,

201

8

Fisc

al Y

ear

Pers

onal

&

Tota

l Tax

able

Tot

al

Estim

ated

Ta

xabl

e As

sess

ed

Ende

d Co

mm

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al

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tmen

t Re

siden

tial

Indu

stria

l O

ther

Ta

x-Ex

empt

As

sess

ed D

irect

Ac

tual

Va

lue

as a

% o

f De

cem

ber 3

1,

Prop

erty

Pr

oper

ty

Prop

erty

Pr

oper

ty

Prop

erty

Pr

oper

ty

Valu

e1 T

ax R

ate

Taxa

ble

Valu

e2 Ac

tual

Tax

able

Val

ue

2009

$

7,29

5,66

9 $

3,49

9,20

0 $

25,4

61,7

84

$ 1,

459,

942

$ 40

1,69

9 $

9,02

5,11

2 $

38,1

18,2

94

7.67

$

43,4

73,3

40

88%

2010

7,

020,

347

3,55

6,81

1 24

,611

,900

1,

474,

662

393,

785

8,77

7,60

9 37

,057

,504

7.

81

39,7

46,5

14

93%

2011

6,

304,

914

3,28

7,60

4 23

,533

,625

1,

426,

447

529,

962

10,5

50,3

39

35,0

82,5

52

9.22

41

,079

,647

85

%

2012

5,

987,

868

3,26

6,16

2 22

,638

,806

1,

301,

688

404,

729

10,3

40,4

95

33,5

99,2

53

10.3

4 39

,412

,937

85

%

2013

5,

982,

739

3,36

3,75

2 21

,512

,948

1,

281,

968

426,

840

9,92

7,05

3 32

,568

,247

9.

55

34,4

59,0

13

95%

2014

6,

166,

615

3,69

0,98

3 21

,634

,886

1,

313,

800

430,

582

10,4

82,2

30

33,2

36,8

65

8.82

45

,164

,553

74

%

2015

6,

534,

226

4,72

3,77

8 23

,516

,623

1,

339,

382

430,

523

11,6

79,3

75

36,5

44,5

32

8.29

43

,879

,415

83

%

2016

7,

596,

673

6,09

0,41

1 24

,958

,025

1,

215,

531

436,

040

12,7

26,0

43

40,2

96,6

81

8.11

45

,025

,954

89

%

2017

8,

469,

151

7,19

6,35

8 26

,608

,421

1,

295,

694

494,

630

13,9

23,1

30

44,0

64,2

54

7.93

49

,148

,618

90

%

2018

9,

195,

030

8,11

7,14

3 28

,671

,360

1,

418,

993

545,

408

15,2

18,5

03

47,9

47,9

34

7.62

53

,685

,280

89

%

Sour

ce: C

ity o

f Min

neap

olis

Fina

nce

and

Prop

erty

Ser

vice

s Dep

artm

ent c

alcu

latio

ns, u

sing

Asse

ssor

dat

a

Not

es:

1 Tota

l of t

he fi

rst f

ive

prop

erty

type

s.

2 Calc

ulat

ed u

sing

sale

s rat

ios,

a m

eans

of s

tatis

tical

ly m

easu

ring

the

unifo

rmity

of a

sses

smen

ts st

atew

ide.

Tax

Rate

s are

per

$1,

000

of a

sses

sed

valu

e.

Tota

l Dire

ct T

ax R

ate

is th

e w

eigh

ted

aver

age

of a

ll in

divi

dual

dire

ct ta

x ra

tes a

pplie

d.

(UN

AUDI

TED)

Sche

dule

5

City

of M

inne

apol

is

Dire

ct a

nd O

verla

ppin

g Pr

oper

ty T

ax R

ates

La

st T

en F

iscal

Yea

rs

Dece

mbe

r 31,

201

8 20

09

2010

20

11

2012

20

13

2014

20

15

2016

20

17

2018

City

Dire

ct R

ates

Ta

x Ca

paci

ty B

ased

Rat

es

Gene

ral

4.86

5.

04

5.73

6.

09

5.36

4.

76

4.48

4.

59

4.55

4.

40

Estim

ate

and

Taxa

tion

0.01

0.

01

0.01

0.

01

0.01

0.

01

--

--

Build

ing

Com

miss

ion

0.13

0.

13

0.14

0.

15

0.16

0.

14

0.13

0.

13

0.12

0.

11

Perm

anen

t Im

prov

emen

t 0.

05

0.05

0.

06

0.03

0.

03

0.03

0.

03

0.01

-

-Bo

nd R

edem

ptio

n 0.

69

0.47

0.

61

0.65

1.

00

1.11

1.

06

0.98

0.

95

0.91

Fi

refig

hter

's Re

lief A

ssoc

atio

n 0.

06

0.04

0.

16

0.01

0.

09

0.08

0.

08

0.04

0.

04

0.05

Po

lice

Relie

f Ass

ocia

tion

0.09

0.

35

0.51

0.

79

0.22

0.

20

0.18

0.

24

0.19

0.

28

Min

neap

olis

Empl

oyee

s Ret

irem

ent F

und

0.07

0.

07

0.09

0.

60

0.62

0.

56

0.51

0.

29

0.31

0.

19

Park

s 1.

35

1.33

1.

56

1.63

1.

69

1.56

1.

52

1.55

1.

50

1.44

Pu

blic

Hou

sing

0.04

-

--

--

--

--

Teac

her's

Ret

irem

ent A

ssoc

iatio

n 0.

07

0.07

0.

08

0.09

0.

08

0.07

0.

06

0.06

0.

06

0.05

M

arke

t Val

ue B

ased

Rat

es

Libr

ary

Refe

rend

um

0.25

0.

25

0.27

0.

29

0.29

0.

30

0.24

0.

22

0.22

0.

20

Tota

l City

Dire

ct R

ates

7.

67

7.81

9.

22

10.3

4 9.

55

8.82

8.

29

8.11

7.

93

7.63

Ove

rlapp

ing

Rate

s Ta

x Ca

paci

ty B

ased

Rat

es

Wat

ersh

ed D

istric

ts

0.19

0.

21

0.21

0.

23

0.23

0.

22

0.22

0.

22

0.22

0.

20

Henn

epin

Cou

nty

5.09

5.

38

5.76

6.

24

6.33

5.

92

5.78

5.

64

5.49

5.

37

Min

neap

olis

Publ

ic S

choo

ls 3.

15

2.57

2.

95

3.47

3.

29

2.85

2.

72

2.63

2.

88

2.87

O

ther

Spe

cial

Tax

ing

Dist

ricts

0.

49

0.52

0.

59

0.70

0.

73

0.71

0.

67

0.68

0.

68

0.64

M

arke

t Val

ue B

ased

Rat

es

Min

neap

olis

Publ

ic S

choo

ls Re

fere

ndum

0.

02

0.02

0.

02

0.02

0.

01

0.02

0.

02

0.02

0.

01

0.02

To

tal O

verla

ppin

g Ra

tes

8.94

8.

70

9.53

10

.66

10.5

9 9.

72

9.41

9.

19

9.28

9.

10

Gran

d To

tal

16.6

1 16

.51

18.7

5 21

.00

20.1

4 18

.54

17.6

9 17

.30

17.2

0 16

.73

Base

d up

on w

eigh

ted

clas

s rat

e am

ong

prop

erty

type

s (e.

g. c

omm

erci

al/in

dust

rial,

resid

entia

l).

Bond

Red

empt

ion

levy

is re

serv

ed fo

r rep

aym

ent o

f deb

t ser

vice

, acc

ordi

ng to

sche

dule

s at t

he ti

me

of sa

le o

f the

bon

ds.

Sour

ce:

City

of M

inne

apol

is Fi

nanc

e an

d Pr

oper

ty S

ervi

ces D

epar

tmen

t

(UN

AUDI

TED)

81

Sche

dule

6

City

of M

inne

apol

is

Prin

cipa

l Pro

pert

y Ta

x Pa

yers

Cu

rren

t Yea

r and

Nin

e Ye

ars A

go

(in th

ousa

nds o

f dol

lars

) De

cem

ber 3

1, 2

018

2018

20

09

Perc

enta

ge o

f Pe

rcen

tage

of

Taxa

ble

Tota

l City

Tax

able

Ta

xabl

e To

tal C

ity T

axab

le

Taxp

ayer

As

sess

ed V

alue

Ra

nk

Asse

ssed

Val

ue

Asse

ssed

Val

ue

Rank

As

sess

ed V

alue

BRI 1

855

IDS

Cent

er L

LC

$ 27

4,39

0 1

1.03

%

$ -

--

NW

C Li

mite

d Pa

rtne

rshi

p 25

3,97

0 2

0.95

%

207,

400

5 0.

86%

Min

neap

olis

225

Hold

ings

LLC

24

4,45

0 3

0.92

%

215,

500

4 0.

89%

33 C

ity C

ente

r Hol

ding

LLC

21

6,41

0 4

0.81

%

--

-

Wel

ls Fa

rgo

Bank

NA

206,

000

5 0.

77%

-

--

Targ

et C

orpo

ratio

n 19

7,43

9 6

0.74

%

271,

342

2 1.

12%

US

Bank

Cor

p RE

Tax

Dep

artm

ent

194,

410

7 0.

73%

-

--

Wel

ls RE

IT-8

00 N

icol

lett

18

0,81

0 8

0.68

%

--

-

Hilto

n Ho

tels

Corp

orat

ion

153,

500

9 0.

58%

-

--

Sout

h Si

xth

Offi

ce L

LC

145,

440

10

0.55

%

--

-

Wel

ls O

pera

ting

Part

ners

hip

--

-17

2,70

0 7

0.72

%

Nor

ther

n St

ates

Pow

er

--

-31

1,62

0 1

1.29

%

MB

Mpl

s 8th

Str

eet L

LC

--

-23

4,00

0 3

0.97

%

City

Cen

ter A

ssoc

iate

s -

--

160,

000

8 0.

66%

Fifth

Str

eet O

wne

r Cor

pora

tion

--

-14

5,90

0 9

0.60

%

Amer

ican

Exp

ress

Fin

anci

al C

orp.

-

--

147,

174

10

0.60

%

Firs

t Min

neap

olis

-Hin

es C

ompa

ny

--

-18

0,60

0 6

0.75

%

Tota

l $

2,06

6,81

9 7.

76%

$

2,04

6,23

6 8.

46%

Sour

ce:

Bond

Issu

e Re

port

12/

1/18

and

12/

30/0

9

(UN

AUDI

TED)

82

Sche

dule

7

Min

neap

olis

Par

k an

d Re

crea

tion

Boar

d Pr

oper

ty T

ax L

evie

s and

Col

lect

ions

- G

ener

al F

und

Last

Ten

Fis

cal Y

ears

De

cem

ber 3

1, 2

018

Ratio

of

Tota

l Tax

Pe

rcen

t De

linqu

ent

Colle

ctio

ns

Fisc

al

Tota

l Cu

rren

t Tax

O

f Lev

y Ta

x To

tal T

ax

To T

otal

Ye

ar

Tax

Levy

Co

llect

ions

Co

llect

ed

Colle

ctio

ns

Colle

ctio

ns

Tax

Levy

2009

$

43,6

07,5

42

$ 42

,519

,175

97

.504

%

$ 90

3,55

2 $

43,4

22,7

27

99.5

76%

2010

45

,488

,623

43

,503

,795

95

.637

%

854,

289

44,3

58,0

84

97.5

15%

2011

47

,217

,000

46

,347

,752

98

.159

%

298,

732

46,6

46,4

84

98.7

92%

2012

47

,217

,000

46

,651

,826

98

.803

%

444,

366

47,0

96,1

92

99.7

44%

2013

48

,616

,000

48

,504

,513

99

.771

%

568,

936

49,0

73,4

49

100.

941%

2014

49

,627

,000

48

,649

,827

98

.031

%

422,

057

49,0

71,8

84

98.8

81%

2015

50

,560

,000

50

,524

,741

99

.930

%

460,

695

50,9

85,4

36

100.

841%

2016

52

,583

,000

52

,462

,988

99

.772

%

294,

435

52,7

57,4

23

100.

332%

2017

58

,013

,000

57

,374

,701

98

.900

%

225,

984

57,6

00,6

85

99.2

89%

2018

60

,450

,000

59

,785

,797

98

.901

%

135,

020

59,9

20,8

17

99.1

25%

Sour

ce:

City

of M

inne

apol

is Fi

nanc

e an

d Pr

oper

ty S

ervi

ces D

epar

tmen

t

(UN

AUDI

TED)

83

Sche

dule

8Ci

ty o

f Min

neap

olis

O

utst

andi

ng D

ebt b

y Ty

pe a

nd P

er C

apita

La

st T

en F

isca

l Yea

rs

(in th

ousa

nds o

f dol

lars

, exc

ept p

er c

apita

) De

cem

ber 3

1, 2

018

Gove

rnm

enta

l Act

iviti

es

Busin

ess-

type

Act

iviti

es

Gene

ral

Gene

ral

Tota

l Fi

scal

O

blig

atio

n Re

venu

e N

otes

O

blig

atio

n Re

venu

e N

otes

Pr

imar

y Pe

r Ye

ar

Bond

s & N

otes

Bo

nds

Paya

ble

Bond

s & N

otes

Bo

nds

Paya

ble

Gove

rnm

ent

Capi

ta (1

)

2009

$

772,

936

$ 35

,980

$

19,0

40

$ 31

0,60

7 $

57,3

65

$ 59

1 $

1,19

6,51

9 $

3,06

7

2010

67

3,92

6 26

,700

15

,585

30

8,38

3 95

,925

45

5 1,

120,

974

2,93

0

2011

58

6,50

0 25

,990

15

,276

29

6,85

7 91

,985

31

1 1,

016,

919

2,65

8

2012

49

5,54

5 25

,210

14

,695

27

2,79

0 85

,255

15

7 89

3,65

2 2,

304

2013

49

1,51

7 24

,385

14

,385

25

4,97

1 94

,100

41

87

9,39

9 2,

243

2014

50

8,01

5 23

,500

14

,055

23

4,61

3 90

,100

-

870,

283

2,17

1

2015

43

7,35

7 22

,710

13

,695

21

4,12

5 84

,790

-

772,

677

1,87

9

2016

43

9,90

8 21

,625

4,

115

221,

637

76,3

15

-76

3,60

0 1,

851

2017

46

0,11

6 20

,305

3,

705

216,

456

64,3

00

-76

4,88

2 1,

849

2018

46

2,79

9 18

,940

3,

270

235,

831

61,5

65

-78

2,40

4 1,

853

Not

es:

Deta

ils re

gard

ing

the

City

of M

inne

apol

is' o

utst

andi

ng d

ebt c

an b

e fo

und

in th

e no

tes t

o th

e fin

anci

al st

atem

ents

. S

ee S

ched

ule

14 fo

r pop

ulat

ion

data

. (1

)

Sour

ce:

City

of M

inne

apol

is Fi

nanc

e an

d Pr

oper

ty S

ervi

ces D

epar

tmen

t - In

vest

men

ts, C

apita

l and

Deb

t Man

agem

ent

(UN

AUDI

TED)

84

Sche

dule

9Ci

ty o

f Min

neap

olis

Ra

tios O

f Net

Gen

eral

Bon

ded

Debt

Out

stan

ding

La

st T

en F

isca

l Yea

rs

(in th

ousa

nds o

f dol

lars

, exc

ept p

er c

apita

) De

cem

ber 3

1, 2

018

Net

Gen

eral

Bon

ded

Debt

Out

stan

ding

Go

vern

men

tal

Busin

ess-

type

Pe

rcen

tage

of

Gene

ral

Gene

ral

Less

Res

ourc

es

Tota

l Tax

able

Fi

scal

O

blig

atio

n O

blig

atio

n Re

stric

ted

to P

ay

Asse

ssed

Val

ue

Per

Year

Bo

nds &

Not

es

Bond

s & N

otes

De

bt S

ervi

ce

Tota

l of

Pro

pert

y (1

) Ca

pita

(2)

2009

$

772,

936

$ 31

0,60

7 $

108,

567

$ 97

4,97

6 2.

56%

$

2,56

9

2010

67

3,92

6 30

8,38

3 57

,397

92

4,91

2 2.

50%

2,

418

2011

58

6,50

0 29

6,85

7 30

,839

85

2,51

8 2.

43%

2,

228

2012

49

5,54

5 27

2,79

0 28

,681

73

9,65

4 2.

20%

1,

907

2013

49

1,51

7 25

4,97

1 29

,302

71

7,18

6 2.

20%

1,

830

2014

50

8,01

5 23

4,61

3 27

,753

71

4,87

5 2.

15%

1,

783

2015

43

7,35

7 21

4,12

5 24

,542

62

6,94

0 1.

72%

1,

524

2016

43

9,90

8 22

1,63

7 38

,695

62

2,85

0 1.

55%

1,

510

2017

46

0,11

6 21

6,45

6 35

,070

64

1,50

2 1.

46%

1,

551

2018

46

2,79

9 23

5,83

1 29

,399

66

9,23

1 1.

40%

1,

585

Not

es:

Deta

ils re

gard

ing

the

City

of M

inne

apol

is' o

utst

andi

ng d

ebt c

an b

e fo

und

in th

e no

tes t

o th

e fin

anci

al st

atem

ents

. S

ee S

ched

ule

4 fo

r pro

pert

y va

lue

data

. (1

)As

sess

ed v

alue

use

d is

cons

isten

t with

val

uatio

ns o

n th

e le

gal d

ebt m

argi

n sc

hedu

le.

Pop

ulat

ion

data

can

be

foun

d in

Sch

edul

e 12

. (2

)

Sour

ce:

City

of M

inne

apol

is Fi

nanc

e an

d Pr

oper

ty S

ervi

ces D

epar

tmen

t - In

vest

men

ts, C

apita

l and

Deb

t Man

agem

ent

(UN

AUDI

TED)

85

Sche

dule

10

City

of M

inne

apol

is

Dire

ct a

nd O

verla

ppin

g Go

vern

men

tal A

ctiv

ities

Deb

t (in

thou

sand

s of d

olla

rs)

Dece

mbe

r 31,

201

8 Es

timat

ed

Gove

rnm

enta

l Es

timat

ed

Shar

e of

De

bt

Perc

enta

ge

Dire

ct a

nd

Gov

ernm

enta

l Uni

t O

utst

andi

ng (1

) Ap

plic

able

(2)

Ove

rlapp

ing

Debt

City

of M

inne

apol

is -

Dire

ct D

ebt

$ 48

5,00

9 10

0.00

%

$ 48

5,00

9

Ove

rlapp

ing

Debt

:

S

peci

al S

choo

l Dist

rict N

o. 1

46

7,72

0 10

0.00

%

467,

720

H

enne

pin

Coun

ty

1,05

6,89

1 (3

) 31

.38%

33

1,65

2

H

enne

pin

Coun

ty R

egio

nal R

ailro

ad A

utho

rity

24,6

00

31.3

8%

7,71

9

M

etro

polit

an C

ounc

il 75

,903

14

.91%

11

,317

Subt

otal

, O

verla

ppin

g De

bt

$ 81

8,40

8

Tota

l Dire

ct a

nd O

verla

ppin

g De

bt

$ 1,

303,

417

Not

es:

Deta

ils re

gard

ing

the

City

of M

inne

apol

is' o

utst

andi

ng d

ebt c

an b

e fo

und

in th

e no

tes t

o th

e fin

anci

al st

atem

ents

. T

his t

able

repr

esen

ts th

e go

vern

men

tal d

ebt o

f the

City

of M

inne

apol

is an

d th

e ne

t deb

t sha

re o

f the

ove

rlapp

ing

juris

dict

ions

. (1

) The

est

imat

ed p

erce

ntag

e ap

plic

able

is d

eter

min

ed b

y He

nnep

in C

ount

y an

d re

pres

ents

the

tax

capa

city

of t

he C

ity o

f Min

neap

olis

in re

latio

n to

the

(2)

tax

capa

city

of t

he o

verla

ppin

g ju

risdi

ctio

ns a

s cal

cula

ted

by H

enne

pin

Coun

ty.

Exc

lude

s sub

urba

n lib

rary

bon

ds fo

r whi

ch C

ity o

f Min

neap

olis

taxp

ayer

s are

not

obl

igat

ed.

(3)

Sour

ces:

Ci

ty o

f Min

neap

olis

Fina

nce

and

Prop

erty

Ser

vice

s Dep

artm

ent -

Inve

stm

ents

, Cap

ital a

nd D

ebt M

anag

emen

t M

inne

apol

is Pu

blic

Sch

ool D

istric

t 1

Henn

epin

Cou

nty

MET

Cou

ncil

Repo

rt o

f Out

stan

ding

Inde

bted

ness

(UN

AUDI

TED)

86

87

Sche

dule

11

City

of M

inne

apol

is Le

gal D

ebt M

argi

n In

form

atio

n La

st T

en F

iscal

Yea

rs

(in th

ousa

nds o

f dol

lars

) De

cem

ber 3

1, 2

018

Fisc

al Y

ear

2009

20

10

2011

20

12

2013

20

14

2015

20

16

2017

20

18

Debt

Lim

it $

1,28

2,79

7 $

1,25

4,20

6 $

1,17

3,62

8 $

1,13

1,06

0 $

1,10

2,29

8 $

1,11

7,04

6 $

1,22

6,82

6 $

1,35

0,98

6 $

1,47

2,35

4 $

1,59

8,18

4

Tota

l net

deb

t app

licab

le to

lim

it 27

0,62

9 24

6,97

9 21

3,71

4 15

4,31

7 15

5,49

4 14

6,50

6 11

4,26

0 10

9,92

6 10

6,84

3 14

1,95

7

Lega

l deb

t mar

gin

$ 1,

012,

168

$ 1,

007,

227

$ 95

9,91

4 $

976,

743

$ 94

6,80

4 $

970,

540

$ 1,

112,

566

$ 1,

241,

060

$ 1,

365,

511

$ 1,

456,

227

Tota

l net

deb

t app

licab

le to

lim

it 21

.10%

19

.69%

18

.21%

13

.64%

14

.11%

13

.12%

9.

31%

8.

14%

7.

26%

8.

88%

as

a p

erce

ntag

e of

deb

t lim

it Le

gal D

ebt M

argi

n Ca

lcul

atio

n fo

r Fisc

al Y

ear 2

018

Real

Pro

pert

y (2

018

Asse

ssed

Mar

ket V

alue

) $

47,4

26,3

94

Pers

onal

Pro

pert

y (2

018

Asse

ssed

Mar

ket V

alue

) 52

1,54

0 Ad

just

men

t for

Exe

mpt

Per

sona

l Pro

pert

y (1

966

Mar

ket V

alue

) 29

8,03

0 Ad

just

men

t for

Net

Fisc

al D

ispar

ities

(Con

trib

utio

n)/D

istrib

utio

n (3

00,4

31)

To

tal 2

018

Asse

ssed

Mar

ket V

alue

(as a

djus

ted)

47

,945

,533

Debt

Lim

it (3

-1/3

% o

f Mar

ket V

alue

App

licab

le to

Deb

t Lim

it)

1,59

8,18

4 De

bt a

pplic

able

to li

mit:

G

ener

al O

blig

atio

n Bo

nds S

ubje

ct to

Deb

t Lim

it 16

3,30

0

Less

: Am

ount

set a

side

to p

ay g

ener

al o

blig

atio

n de

bt

(21,

343)

To

tal N

et D

ebt A

pplic

able

to L

imit

141,

957

Lega

l Deb

t Mar

gin

$ 1,

456,

227

Sour

ce:

City

of M

inne

apol

is Fi

nanc

e an

d Pr

oper

ty S

ervi

ces D

epar

tmen

t - In

vest

men

ts, C

apita

l and

Deb

t Man

agem

ent

(UN

AUDI

TED)

88

Sche

dule

12

City

of M

inne

apol

is

Dem

ogra

phic

and

Eco

nom

ic S

tatis

tics

Last

10

Fisc

al Y

ears

De

cem

ber 3

1, 2

018

Annu

al A

vera

ge

Med

ian

Per C

apita

Pe

rson

al

Med

ian

Une

mpl

oym

ent

Hous

ehol

d

Scho

ol

Year

Po

pula

tion

(1)

Inco

me

(2)

Inco

me

Age

(3)

Hous

ehol

ds (4

) Jo

bs (5

) Ra

te (6

) I

ncom

e (7

) En

rollm

ent (

8)

2009

38

6,69

1 $

28,1

31

$ 10

,878

,004

,521

31

.6

169,

798

280,

899

7.3%

$

45,5

38

33,4

24

2010

38

2,57

8

29,5

58

11,3

08,2

40,5

24

31.4

16

3,54

0 28

1,57

7 6.

9%

46,5

08

33,4

18

2011

38

7,87

3

30,2

56

11,7

35,4

85,4

88

32.3

16

6,11

0 28

7,84

6 6.

1%

46,6

82

33,4

76

2012

39

2,00

8

29,9

36

11,7

35,1

51,4

88

31.4

16

6,51

3 29

7,01

2 5.

3%

47,6

04

34,4

23

2013

40

0,93

8

32,7

91

13,1

47,1

57,9

58

32.1

17

0,19

5 30

3,13

5 4.

6%

50,5

63

35,3

56

2014

41

1,27

3

31,7

64

13,0

63,6

75,5

72

31.8

17

5,11

9 30

8,71

4 3.

8%

50,7

91

35,4

00

2015

41

2,51

7

34,7

63

14,3

40,3

28,4

71

32.4

17

6,87

8 31

7,47

5 3.

4%

54,5

71

35,6

49

2016

41

3,64

5

34,5

27

14,2

81,9

20,9

15

32.0

17

9,80

7 32

4,62

0 3.

4%

56,2

55

35,5

97

2017

42

2,32

6

38,1

31

16,1

03,7

12,7

06

32.4

17

6,41

6 32

7,35

5 3.

2%

60,7

89

35,4

02

2018

N

A N

A N

A N

A N

A 33

2,17

5 2.

5%

NA

34,5

72

Sour

ces:

Pop

ulat

ion

- 200

9 an

d 20

11-2

017

Met

Cou

ncil.

(1)

201

0 U

S Ce

nsus

. P

er C

apita

Inco

me

(2)

- U

.S. C

ensu

s Bur

eau

- Am

eric

an C

omm

unity

Sur

vey

- 1 Y

ear E

stim

ate

Med

ian

Age

- U.S

.(3

) C

ensu

s Bur

eau

- Am

eric

an C

omm

unity

Sur

vey

- 1 Y

ear E

stim

ate

Hou

seho

lds -

200

9 an

d 20

11-2

017

Met

Cou

ncil.

(4)

201

0 U

S Ce

nsus

. Jo

bs d

ata

from

MN

DEE

D/Q

CEW

tabl

es; 2

018

num

ber r

efle

cts 3

rd q

uart

er, l

ates

t ava

ilabl

e da

ta

(5) A

nnua

l Ave

rage

Une

mpl

oym

ent R

ate

- fro

m M

N D

EED/

LAU

S ta

bles

(6

) Med

ian

Hous

ehol

d In

com

e - U

.S.

(7)

Cen

sus B

urea

u - A

mer

ican

Com

mun

ity S

urve

y - 1

Yea

r Est

imat

e (8

) Sc

hool

Enr

ollm

ent -

Min

neap

olis

Publ

ic S

choo

ols/

Stud

ent A

ccou

ntin

g O

ffice

NA

- 201

8 da

ta is

not

yet

ava

ilabl

e fo

r the

se c

ateg

orie

s.

(UN

AUDI

TED)

89

Sche

dule

13

City

of M

inne

apol

is

Prin

cipa

l Em

ploy

ers

Curr

ent Y

ear a

nd N

ine

Year

s Ago

De

cem

ber 3

1, 2

018

2018

(a)

20

09 (b

) Ap

prox

imat

e Pe

rcen

tage

Ap

prox

imat

e Pe

rcen

tage

N

umbe

r of

of T

otal

Met

ro

Num

ber o

f of

Tot

al C

ity

Empl

oyer

Em

ploy

ees

Rank

Em

ploy

men

t Em

ploy

ees

Rank

Em

ploy

men

t

Uni

vers

ity o

f Min

neso

ta

20,0

00

1 6.

0%

14,7

00

1 7.

0%

Allin

a He

alth

20

,000

2

6.0%

-

-

Targ

et C

orpo

ratio

n 8,

300

3 2.

5%

10,0

00

2 4.

7%

Henn

epin

Hea

lthca

re

7,10

0 4

2.1%

5,

000

8 2.

4%

Wel

ls Fa

rgo

Bank

7,

000

5 2.

1%

6,30

0 3

3.0%

Henn

epin

Cou

nty

6,50

0 6

2.0%

5,

800

5 2.

7%

Amer

ipris

e Fi

nanc

ial S

ervi

ces

5,10

0 7

1.5%

6,

100

4 2.

9%

US

Banc

orp

4,60

0 8

1.4%

2,

600

10

1.2%

Xcel

Ene

rgy

2,50

0 9

0.8%

-

-

City

of M

inne

apol

is 2,

100

10

0.6%

5,

000

7 2.

4%

Abbo

tt N

orth

wes

tern

Hos

pita

l -

-5,

200

6 2.

5%

Star

Trib

une

--

2,80

0 9

1.3%

Tota

l 83

,200

25

.0%

63

,500

30

.1%

Not

es:

a)

Empl

oym

ent n

umbe

rs a

re m

etro

-wid

e nu

mbe

rs ro

unde

d to

nea

rest

100

. So

urce

s for

City

jobs

: Min

neap

olis

Dow

ntow

n Co

unci

l, U

MN

and

Alli

na W

ebsit

es

b)

Sour

ce w

as M

inne

apol

is Co

mm

unity

Pla

nnin

g an

d Ec

onom

ic D

evel

opm

ent (

CPED

) as p

revi

ously

pub

lishe

d in

200

9 Ci

ty C

AFR.

(UN

AUDI

TED)

90

Sche

dule

14

City

of M

inne

apol

is

Full-

time

Equi

vale

nt C

ity G

over

nmen

t Em

ploy

ees b

y Fu

nctio

n La

st 1

0 Fi

scal

Yea

rs

Dece

mbe

r 31,

201

8 Fu

ll-tim

e Eq

uiva

lent

Em

ploy

ees a

s of D

ecem

ber 3

1 20

09

2010

20

11

2012

20

13

2014

20

15

2016

20

17

2018

Fu

nctio

n Pr

ogra

m

Gene

ral G

over

nmen

t

A

sses

sor

36.5

0 36

.50

34.5

0 35

.00

35.0

0 36

.00

36.0

0 37

.00

38.0

0 38

.00

Att

orne

y 10

5.50

10

2.00

10

5.00

10

1.00

10

2.00

10

8.00

11

0.00

11

2.00

11

2.00

11

3.30

City

Cle

rk/C

ounc

il 65

.50

65.5

0 64

.75

65.0

2 66

.00

66.0

0 70

.00

71.0

0 71

.00

71.0

0

C

ity C

oord

inat

or

919.

10

949.

80

546.

60

691.

40

677.

40

702.

60

747.

60

754.

10

764.

10

771.

30

C

ivil

Righ

ts

21.0

0 19

.00

19.0

0 19

.00

21.0

0 22

.00

23.0

0 25

.00

29.0

0 30

.00

Com

mun

ity P

lann

ing

and

Econ

omic

Dev

elop

men

t 14

1.00

13

5.00

12

8.00

11

6.79

22

4.80

22

8.00

23

0.00

23

9.00

24

0.00

24

3.00

Fi

re

444.

00

438.

00

406.

00

392.

00

413.

00

413.

00

413.

00

413.

00

418.

00

421.

00

Min

neap

olis

Heal

th D

epar

tmen

t 67

.00

60.0

0 61

.70

50.2

5 91

.00

94.3

0 99

.30

100.

05

103.

05

107.

00

Inte

rnal

Aud

it -

2.00

3.

00

2.50

2.

00

3.00

3.

00

3.00

4.

00

4.00

M

ayor

12

.00

10.0

0 11

.00

11.0

0 11

.00

11.0

0 12

.00

13.0

0 13

.00

13.0

0 Po

lice

1,09

2.00

99

9.20

99

2.00

96

7.80

98

0.50

98

5.50

1,

020.

50

1,02

9.50

1,

060.

50

1,08

0.50

Pu

blic

Wor

ks

1,18

9.20

1,

024.

50

1,00

0.35

93

2.08

91

1.65

94

6.98

1,

004.

50

1,00

5.90

1,

097.

90

1,13

4.60

Re

gula

tory

Ser

vice

s*

--

379.

00

285.

30

141.

00

149.

00

156.

50

173.

00

177.

00

177.

00

4,09

2.80

3,

841.

50

3,75

0.90

3,

669.

14

3,67

6.35

3,

765.

38

3,92

5.40

3,

975.

55

4,12

7.55

4,

203.

70

Inde

pend

ent B

oard

s Bo

ard

of E

stim

ate

& T

axat

ion

2.00

1.

00

1.00

1.

00

1.00

1.

00

1.00

1.

00

1.00

1.

00

Park

85

9.00

82

7.00

81

1.18

80

2.40

81

4.72

81

9.24

83

2.00

85

9.26

92

4.36

95

6.91

Bu

ildin

g Co

mm

issio

n 62

.00

62.0

0 60

.00

54.0

0 55

.00

55.0

0 55

.00

55.0

0 55

.00

59.0

0 Yo

uth

Coor

dina

ting

Boar

d 5.

00

5.00

5.

80

5.80

5.

80

9.00

8.

00

8.00

8.

00

8.00

N

eigh

borh

ood

Revi

taliz

atio

n Pr

ogra

m**

9.

00

7.00

5.

00

--

--

--

-93

7.00

90

2.00

88

2.98

86

3.20

87

6.52

88

4.24

89

6.00

92

3.26

98

8.36

1,

024.

91

Tota

l 5,

029.

80

4,74

3.50

4,

633.

88

4,53

2.34

4,

552.

87

4,64

9.62

4,

821.

40

4,89

8.81

5,

115.

91

5,22

8.61

* In

201

1 Re

gula

tory

Ser

vice

s bec

ame

a Ch

arte

r dep

artm

ent a

nd is

no

long

er in

clud

ed in

City

Coo

rdin

ator

FTE

tota

l **

In

201

2, th

e N

eigh

borh

ood

Revi

taliz

atio

n Pr

ogra

m (N

RP) c

hang

ed m

anag

emen

t to

the

Nei

ghbo

rhoo

d an

d Co

mm

unity

Rel

atio

ns (N

CR) d

epar

tmen

t und

er th

e Ci

ty C

oord

inat

or.

Sour

ce:

City

of M

inne

apol

is M

anag

emen

t and

Bud

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(UN

AUDI

TED)

https://5,228.61

https://5,115.91

https://4,898.81

https://4,821.40

https://4,649.62

https://4,552.87

https://4,532.34

https://4,633.88

https://4,743.50

https://5,029.80

https://1,024.91

https://4,203.70

https://4,127.55

https://3,975.55

https://3,925.40

https://3,765.38

https://3,676.35

https://3,669.14

https://3,750.90

https://3,841.50

https://4,092.80

https://1,134.60

https://1,097.90

https://1,005.90

https://1,004.50

https://1,000.35

https://1,024.50

https://1,189.20

https://1,080.50

https://1,060.50

https://1,029.50

https://1,020.50

https://1,092.00

· 7 Management Discussion and Analysis 10 Basic Financial Statements Government-wide Financial...

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