2006 Full Comprehensive Annual Financial Statement

2006 Full Comprehensive Annual Financial Statement

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Report does not correspond exactly to that of the printed version. The information reported in both versions is the same.

Page 1

RAMSEY COUNTY

Comprehensive

Annual Financial Report

Year ended December 31, 2006

Ramsey County Court House

Ramsey County, Minnesota

15 W. Kellogg Blvd., #270

St. Paul, Minnesota 55102

Page 2

FINANCIAL HIGHLIGHTS

(Dollars in thousands except per capita amounts)

Government-wide Financial Statements:

Assets

Liabilities

Net Assets

Government-wide Financial Statements:

Revenues

Expenses

Increase in Net Assets

Expense per Capita

Investment/Cash Ratio

Average Investment Yield

General Obligation Debt

Net General Obligation Debt Per Capita

Bond Ratings

Moody's Investor Services

Standard & Poor's

Property Taxes

Levy (General County)

Net Tax Capacity Rates

Net Tax Capacity

Market Values

Number of Budgeted Employees (FTE)

$

$

$

2006

1,001,727

308,500

693,227

$

$

$

$

$

$

$

$

$

577,711

509,800

67,911

989.41

99.0%

4.7%

213,400

342.80

Aaa

AAA

222,719

41.97

478,384

41,244,140

3,743.48

2005

$

$

$

939,385

314,069

625,316

Percent

Change

6.6%

(1.8%)

10.9%

$

$

$

$

$

$

532,290

494,346

37,944

959.09

99.0%

3.6%

218,607

355.03

Aaa

AAA

$ 209,638

43.55

$ 429,417

$ 36,745,140

3,647.58

8.5%

3.1%

3.2%

-

30.6%

(2.4%)

(3.4%)

6.2%

(3.6%)

11.4%

12.2%

2.6%

Page 3

Comprehensive Annual Financial Report

of the

County of Ramsey, Minnesota

Year Ended December 31, 2006

BOARD OF COUNTY COMMISSIONERS

Jan Parker

Janice Rettman

Toni Carter

Rafael Ortega

District

1

2

3

4

5

6

7

Prepared by: Budgeting & Accounting Office of

the County Manager’s Department

Page 4

TABLE OF CONTENTS

SECTION I – INTRODUCTORY SECTION

List of Principal Officials

Transmittal Letter

Organizational Chart

Certificate of Achievement for Excellence in Financial Reporting

SECTION II – FINANCIAL SECTION

Independent Auditor’s Report

MANAGEMENT’S DISCUSSION AND ANALYSIS

BASIC FINANCIAL STATEMENTS

Government-wide Financial Statements:

Statement of Net Assets

Statement of Activities

Fund Financial Statements:

Governmental Fund Financial Statements:

Balance Sheet – Governmental Funds

Statement of Revenues, Expenditures, and Changes in Fund

Balances – Governmental Funds

Reconciliation of the Statement of Revenues, Expenditures, and

Changes in Fund Balances of Governmental Funds to the

Statement of Activities

Proprietary Fund Financial Statements:

Statement of Net Assets – Proprietary Funds

Statement of Revenues, Expenses, and Changes in Fund Net

Assets – Proprietary Funds

Statement of Cash Flows – Proprietary Funds

Fiduciary Fund Financial Statements:

Statement of Fiduciary Net Assets – Fiduciary Funds

Statement of Changes in Fiduciary Net Assets – Fiduciary Funds

Notes to the Financial Statements

Exhibit 1

Exhibit 2

Exhibit 3

Exhibit 4

Exhibit 5

Exhibit 6

Exhibit 7

Exhibit 8

Exhibit 9

Exhibit 10

9

10

15

16

18

20

32

34

38

39

40

42

43

44

35

36

37

Page 5

TABLE OF CONTENTS (Continued)

REQUIRED SUPPLEMENTARY INFORMATION OTHER THAN MD&A:

Schedule of Revenues, Expenditures, and Changes in Fund

Balances – Budget and Actual General Fund

Notes to the Required Supplementary Information

Schedule 1

MAJOR FUND BUDGET AND ACTUAL SCHEDULE:

Schedule of Revenues, Expenditures, and Changes in Fund

Balances – Budget and Actual Debt Service Fund

COMBINING STATEMENTS:

Schedule 2

77

79

81

95

96

97

98

89

90

91

92

93

94

Page 6

TABLE OF CONTENTS (Continued)

SUPPLEMENTARY INFORMATION:

Schedule of Intergovernmental Revenues

Schedule of Expenditures of Federal Awards

Schedule 9 108

Schedule 10 110

SECTION III – STATISTICAL SECTION

Net Assets by Component

Changes in Net Assets

Fund Balances of Governmental Funds

Changes in Fund Balances of Governmental Funds

Net Tax Capacity and Market Value of Property

Property Tax Rates and Tax Levies

Property Tax Levies and Collections

Ratio of Net General Bonded Debt by Type

Ratios of General Bonded Debt Outstanding

Direct and Overlapping Governmental Activities Debt

Legal Debt Margin Information

Principal Property Taxpayers

Demographic and Economic Statistics

Principal Employers

Insurance in Force

Full-time Equivalent County Employees by Function/Program

Operating Indicators by Function

Capital Assets Statistics by Function

Table I

Table II

Table III

Table IV

Table V

Table VI

Table VII

Table VIII

Table IX

Table X

Table XI

Table XII

Table XIII

Table XIV

Table XV

Table XVI

124

125

126

127

128

129

130

132

Table XVII 133

Table XVIII 134

115

116

118

119

120

121

122

123

Page 7

SECTION I – INTRODUCTORY SECTION

Page 8

RAMSEY COUNTY

LIST OF PRINCIPAL OFFICIALS

December 31, 2006

Name

ELECTED

Commissioners:

1st District

2nd District

3rd District

4th District

5th District

6th District

7th District

County Attorney

County Sheriff

Tony Bennett, Chair

Jan Parker

Janice Rettman

Toni Carter

Rafael Ortega

Jim McDonough

Victoria Reinhardt

Susan Gaertner

Bob Fletcher

APPOINTED

County Manager

Assessor

Property Records &

David Twa

Stephen Baker

Revenue Director

Information Services Director

Dorothy McClung

Mary Mahoney

Community Corrections Director Carol Roberts

Parks & Recreation Director Gregory Mack

County Engineer Kenneth Haider

Community Human Services Director Monty Martin

Public Health Director Robert Fulton

CIVIL SERVICE APPOINTMENTS

Term Expires

January 2009

January 2009

January 2011

January 2011

January 2011

January 2011

January 2009

January 2011

January 2011

Indefinite

December 31, 2008

Indefinite

Indefinite

Indefinite

Indefinite

May 30, 2009

Indefinite

Indefinite

Budgeting & Accounting Director Julie Kleinschmidt

Page 9

Office of the County Manager

David J. Twa, County Manager

Working with You To Enhance

Our Quality of Life

June 19, 2007

Honorable Chair and Commissioners

Ramsey County Board of Commissioners

Room 220 Court House

St. Paul, Minnesota 55102

Commissioners:

The comprehensive annual financial report of Ramsey County is submitted for the fiscal year ended December

31, 2006. This report was prepared by the Office of Budgeting & Accounting. Responsibility for both the accuracy of the presented data and completeness and fairness of the presentation, including all disclosures, rests with County management. This report conforms to generally accepted accounting principles (GAAP) as set forth in the pronouncements of the Governmental Accounting Standards Board (GASB).

We believe the data are accurate in all material aspects, and set forth the financial position and results of operations of the County, as measured by the financial activity of its various funds, and all disclosures necessary to enable maximum understanding of the County’s financial affairs.

Copies of this report will be sent to elected officials, County management, credit rating agencies, financial institutions, and governmental agencies, which have expressed an interest in Ramsey County’s financial affairs.

The accompanying report consists of three parts:

1. Introductory Section - including this transmittal letter;

2. Financial Section - including the financial statements and supplemental data of the County, accompanied by the State Auditor’s report;

3. Statistical Section - including a number of tables of data depicting the financial history of the County for the past ten years, and information on overlapping governments, demographic, and other miscellaneous information.

The County is required to undergo an annual single audit in conformity with the provisions of the Single Audit Act

Amendments of 1996 and U.S. Office of Management & Budget Circular A-133, “Audits of States, Local

Governments, and Non-Profit Organizations.” The schedule of expenditures of federal awards is included in this report on Schedule 10. The findings and recommendations and auditor’s report on the internal control structure and compliance with applicable laws and regulations will be included in the Auditor’s Management and

Compliance letter to the County and is not part of this report.

GAAP requires that management provide a narrative introduction, overview, and analysis to accompany the basic financial statements in the form of a Management’s Discussion and Analysis (MD&A). This letter of transmittal is designed to complement the MD&A and should be read in conjunction with it. The County’s MD&A can be found immediately following the report of the independent auditors.

Excellence Respect Diversity

GENERAL INFORMATION

Ramsey County has an area of 170.2 square miles (107,520 acres) and is the State’s second most populous county. Ramsey County was organized on October 27, 1849 and is governed by the general laws of the State of Minnesota. On November 6, 1992, the County became the first Home

Rule Charter County in the State. The City of Saint Paul comprises slightly less than half of the

County’s total taxable value, and is the Minnesota State Capital and the County Seat.

GOVERNMENTAL ORGANIZATION AND SERVICES

A seven-member Board of Commissioners determines County policy and decides how money should be spent for the well-being of the people it represents. All members serve overlapping fouryear terms of office. Each member also serves on numerous other boards and committees.

The Board appoints the County Manager who is the chief administrative officer of the County. The

County Manager is responsible for the administration of Board policy and for the management of the various county departments.

The County provides a full range of services contemplated by statute. This includes public safety, recreation, public works, health services, judicial, cultural, human services, vital statistics, and tax assessment and collection. The County also operates, as enterprise funds, a nursing home and a home for developmentally disabled residents.

REPORTING ENTITY

The financial reporting entity includes all funds of the County including component units.

Component units are legally separate entities for which the primary government is financially accountable. The criteria used in determining the reporting entity are consistent with the GASB

Statement 14.

Blended component units are legally separate entities which, in substance, are part of the primary government’s operation and, therefore, part of the primary government. Accordingly, the Ramsey

County Regional Railroad Authority and the Ramsey County Housing & Redevelopment Authority are reported as special revenue funds.

MAJOR COUNTY INITIATIVES

Ramsey County Riverfront Properties

A potential sale of the former Adult Detention Center and the “F” building in the Ramsey County

Government Center-West (RCGC-West) complex did not materialize in the fall of 2006. On

November 14, 2006, the County Board authorized selling the County-owned property, including all buildings and structures, located on the riverfront from and including RCGC-West, and going East to, but not including the RCGC-East (Riverfront Properties).

The County has entered into an agreement with United Properties to serve as agent in the sale of the Riverfront Properties. The Riverfront Properties represent a highly unique redevelopment opportunity in the Central Business District of St. Paul, Minnesota. The County anticipates receiving multiple proposals through a date certain offering process due on June 15, 2007.

Public Safety Communication System/800 MHz Project

The County initiated this $35 million project in 2004 to design and construct a new Countywide

Public Safety Communications System using 800 MHz technology. The County completed development of a subsystem to the regional and state radio system in 2006. The system includes radios, antennas, shelters, microwave and fiber optic connections, and backup power for the

County’s seven base radio stations. Suburban communities began transitioning to the system in

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2006. All municipalities in the County are working together, under the County’s leadership, to develop this system that will allow public safety agencies (police, fire, emergency medical services, and homeland security) to communicate with each other and throughout the region and state.

In 2006, construction began on a new emergency communication center on the Saint Paul/Ramsey

County Law Enforcement Campus. A backup communication center will be developed at the

Ramsey County Sheriff’s Patrol Station in Arden Hills. Three of the four existing dispatch centers in the County are merging covering all dispatching activities in the County except in one municipality. Services for these communities will be provided at the new state-of-the-art center that will be operated by the County. The emergency communications center begins operations in the summer of 2007.

Continuity of Operations Plan (COOP)

Since September 11, 2001, all governments, at various levels, have become more cognizant of their ability to continue operations in the event of a disaster or emergency. The Federal

Emergency Management Agency has provided states and local governments with planning guidelines for the continuity of government operations. Ramsey County is currently developing its

Continuity of Operations Plan, which will provide guidance to County departments to carry out responsibilities and ensure essential functions are continued in an emergency, or threat of emergency, that could affect normal operations of County business. The Plan will be reviewed and revised on an ongoing basis.

Library Facilities

Phase I of a multi-year upgrade and expansion of the County’s Library facilities will be complete in the spring of 2007 with the opening of the new Maplewood Library. Phase II will begin in late summer of 2007 with the preparation of a “master planning process” for the remaining Library facilities

.

90 West Plato Boulevard

On November 28, 2006, the County Board authorized the purchase of 90 West Plato Boulevard, an

82,000 net rentable square foot facility, to accommodate the relocation of the Department of

Property Records and Revenue from the RCGC-West building. The County has entered into a contract with Kraus-Anderson Construction Company for design/build services related to the remodeling of the 90 West Plato Boulevard facility. Occupancy of the facility is planned for

November of 2007.

Ramsey County Correctional Facility (RCCF)

On May 2, 2006, the County Board approved the RCCF Expansion and Remodeling Project.

Construction of this $18 million project is scheduled to begin in the spring of 2007, with completion in the fall of 2008.

Excess County Property

On July 25, 2006, the County Board approved the sale of the former Public Works site to the City of Shoreview. The property was sold in 2006. In November 2006, the County Board authorized and/or reaffirmed the desire to sell the Taco John’s site, the former Sheriff Patrol Station, and the former Maplewood Library. It is anticipated that all three properties will be sold in 2007.

Union Depot

The Regional Railroad Authority is pursuing the redevelopment of the Union Depot, located in downtown St. Paul, to serve as a multi-modal transit hub where Amtrak, intracity bus, light rail transit, commuter rail, and intercity buses will meet for a seamless transfer. Ramsey County’s

Regional Railroad Authority purchased 11 acres of property and is in negotiations with the Post

Office and the City of St. Paul to purchase additional property to implement the build out of the transit hub. It is anticipated the U.S. Post Office will move operations in 2010, clearing a path for

Page 12

implementation of the first phase of the transit hub. The Union Depot Project was awarded $50 million in federal funds for the renovation of the Union Depot.

Central Corridor and Other Transit Initiatives

The Central Corridor light rail transit project was given permission by the Federal Transit

Administration to begin preliminary engineering in December 2006. The project is estimated to cost $930 million and serve 43,000 passengers daily, beginning in 2014. Ramsey County

Regional Railroad Authority is one of the funding sources of the project. Transit initiatives are underway in the Rush Line, Red Rock, and Robert Street Corridors.

Two-Year Budget

In 2005, the Ramsey County Board of Commissioners adopted its first two-year budget for 2006-

2007. The purpose of the two-year budget is to improve financial management; improve longrange and strategic planning; and better linking of operating and capital activities with spending.

The second year of the biennium focused on departments outcomes and performance measures to provide more meaningful information to the County Board and the public, and should eventually more closely link the budget to the goals set by the County Board.

Other Post-Employment Benefits (Retiree Health Insurance)

The County has been reviewing its post-employment benefit policies for several years. Changes to the health insurance benefits for retirees have been made to control costs while still providing benefits to the retirees. While the unfunded actuarial liability is expected to be large, the County

Board set aside over $18 million in 2006 to start addressing funding concerns in the future.

COUNTY DEBT POLICY

The Joint Property Tax Advisory Committee, created by State Statute, is made up of elected officials from Ramsey County, the City of Saint Paul and the Saint Paul Public Schools. Their charge is to reduce the overall tax burden on Saint Paul citizens through tax reform legislation, integration/consolidation of service delivery and creation of joint ventures.

As a member of this Committee, the County will issue debt only for financing capital assets that, because of their long-term nature or because of budgetary constraints, cannot be acquired from current or budgeted resources. Debt is not used for operational needs.

Debt issues of the County will be sold competitively unless a unique circumstance dictates a negotiated or private placement sale.

The County strives to maintain the highest possible credit rating on its debt obligations.

Ramsey County’s debt program is monitored and measured against financial industry standard benchmarks including benchmarks adopted by the Joint Property Tax Advisory Committee as described in the 2005 report on General Obligation Debt Overlapping on the Saint Paul Tax Base.

In addition to these debt management benchmarks, the group has recommended that the participating jurisdictions expand their efforts to jointly use facilities and transfer facilities between member jurisdictions as needs change.

INDEPENDENT AUDIT

Minnesota State Law requires an audit to be made of the books of account, financial records, and transactions of the County. This requirement has been complied with and the Auditor’s report has been included in this report.

Page 13

In addition to meeting the requirements set forth in state laws, the audit is also designed to meet the requirements of the federal Single Audit Act Amendments of 1996 and related OMB Circular A-

133. The County’s Auditors will issue a management and compliance letter covering the review made as part of the examination of Ramsey County’s system of internal control and compliance with applicable legal provisions. This letter also reflects the results of the County’s single audit under provisions of the OMB Circular A-133.

CERTIFICATE OF ACHIEVEMENT FOR EXCELLENCE IN FINANCIAL REPORTING

The Government Finance Officers Association of the United States and Canada (GFOA) awarded a Certificate of Achievement for Excellence in Financial Reporting to Ramsey County for its comprehensive annual financial report for the fiscal year ended December 31, 2005. This is the

32 nd

year the County has received this award. In order to be awarded a Certificate of

Achievement, a governmental unit must publish an easily readable and efficiently organized comprehensive annual financial report, whose contents conform to program standards. Such reports must satisfy both generally accepted accounting principles and applicable legal requirements.

A Certificate of Achievement is valid for a period of one year only. We believe our current report continues to conform to Certificate of Achievement Program requirements, and we are submitting it to GFOA to determine its eligibility for another certificate.

In addition, the County also received the GFOA’s Award for Distinguished Budget Presentation for the 2006 annual approved budget. The County has received this award for the past 23 years. In order to qualify for the Distinguished Budget Presentation Award, the County’s budget document was judged to be proficient in several categories including policy documentation, financial planning, and organization.

ACKNOWLEDGMENTS

The preparation of this report is the result of the dedicated service of all the financial staff of the

County. We would like to express our appreciation to all staff that assisted and contributed to its preparation. We would also like to thank the County Board of Commissioners for their support in maintaining the highest standards of professionalism in the management of the County’s finances.

Sincerely,

David Twa

County Manager

Julie Kleinschmidt, Director

Budgeting & Accounting

Page 14

RAMSEY COUNTY ORGANIZATION CHART

County Administration &

Taxpayer Services

Personnel

Review

Committee

Administration,

Finance &

Human

Resources

Emergency

Management &

Homeland

Security

Information

Services

Property

Management

Regional

Railroad

Authority

Housing &

Redevelopment

Authority

Health & Human Services

Community

Human

Services

Lake Owasso

Residence

Ramsey

Nursing Home

Electorate

COUNTY BOARD

County

Manager

Charter

Transportation,

Recreation & Culture

Library

Board

Libraries

Parks &

Recreation

Public Health

Public Works

Veterans

Services

Property

Records &

Revenue

BOLD

Elected Policy

Workforce

Solutions

State of Minnesota

*

Appointed by District Court

Page 15

Charter

Commission *

Board/Bench

Committee

Public Safety & Justice

COUNTY

ATTORNEY

SHERIFF

Community

Corrections

Corrections

Management

Committee

District

Court

JUDGES

Emergency

Communications

Medical

Examiner

Certificate of

Achievement

for

Excellence in Financial

Reporting

Presented to

Ramsey County

Minnesota

For its Comprehensive Annual

Financial Report for the Fiscal Year Ended

December 31,2005

A Certificate of Achievement for Excellence in Financial

Reporting is presented by the Government Finance Officers

Association of the United States and Canada to government units and public employee retirement systems whose comprehensive annual financial reports (CAFRs) achieve the highest standards in government accounting and financial reporting.

Executive Director

Page 16

SECTION II – FINANCIAL SECTION

Page 17

REBECCA OTTO

STATE AUDITOR

S

TATE OF

M

INNESOTA

O

FFICE OF THE

S

TATE

A

UDITOR

SUITE 500

525 PARK STREET

SAINT PAUL, MN 55103-2139

(651) 296-2551 (Voice)

(651) 296-4755 (Fax) [email protected] (E-mail)

1-800-627-3529 (Relay Service)

INDEPENDENT AUDITOR’S REPORT

Board of County Commissioners

Ramsey County

We have audited the accompanying financial statements of the governmental activities, the business-type activities, each major fund, and the aggregate remaining fund information of Ramsey

County, Minnesota, as of and for the year ended December 31, 2006, which collectively comprise the County’s basic financial statements, as listed in the table of contents. These financial statements are the responsibility of Ramsey County’s management. Our responsibility is to express opinions on these financial statements based on our audit. The prior year partial comparative information has been derived from the County’s 2005 financial statements and, in our report dated May 26, 2006, we expressed unqualified opinions on the respective financial statements of the governmental activities, the business-type activities, each major fund, and the aggregate remaining fund information.

We conducted our audit in accordance with auditing standards generally accepted in the United

States of America and the standards applicable to financial audits contained in Government Auditing

Standards, issued by the Comptroller General of the United States. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audit provides a reasonable basis for our opinions.

In our opinion, the financial statements referred to above present fairly, in all material respects, the respective financial position of the governmental activities, the business-type activities, each major fund, and the aggregate remaining fund information of Ramsey County as of December 31, 2006, and the respective changes in financial position and cash flows, where applicable, thereof for the year then ended in conformity with accounting principles generally accepted in the United States of

America.

Page 18

The Management’s Discussion and Analysis (MD&A) and the Required Supplementary Information

Other Than MD&A, as listed in the table of contents, are not a required part of the basic financial statements but are supplementary information required by the Governmental Accounting Standards

Board. We have applied certain limited procedures, which consisted principally of inquiries of management regarding the methods of measurement and presentation of the required supplementary information. However, we did not audit the information and express no opinion on it.

Our audit was made for the purpose of forming opinions on the financial statements that collectively comprise Ramsey County’s basic financial statements. The major debt service fund budget and actual schedule, combining statements, and supplementary information listed in the table of contents are presented for purposes of additional analysis and are not a required part of the basic financial statements. Such information has been subjected to the auditing procedures applied in the audit of the basic financial statements and, in our opinion, is fairly presented in all material respects in relation to the basic financial statements taken as a whole.

In accordance with Government Auditing Standards, we have also issued our report dated June 19,

2007, on our consideration of Ramsey County’s internal control over financial reporting and on our tests of its compliance with certain provisions of laws, regulations, contracts, and grant agreements and other matters. The purpose of that report is to describe the scope of our testing of internal control over financial reporting and compliance and the results of that testing, and not to provide an opinion on the internal control over financial reporting or on compliance. That report is an integral part of an audit performed in accordance with Government Auditing Standards and should be considered in assessing the results of our audit.

REBECCA OTTO

STATE AUDITOR

June 19, 2007

GREG HIERLINGER, CPA

DEPUTY STATE AUDITOR

Page 19

MANAGEMENT’S DISCUSSION AND ANALYSIS

Ramsey County offers readers of the County’s financial statements this narrative overview and analysis of the financial activities of the County for the fiscal year ended December 31, 2006.

Readers are encouraged to consider the information presented here in conjunction with additional information that has been furnished in the letter of transmittal, which can be found on pages 10-

14 of this report.

Financial Highlights

• The assets of Ramsey County’s governmental activities exceeded its liabilities at the close of the most recent fiscal year by $689,646,694 (net assets). Of this amount, $167,942,820

(unrestricted net assets) may be used to meet the government’s ongoing obligations to citizens and creditors.

• The government’s total net assets increased by $67,911,357.

• As of the close of the current fiscal year, the County’s governmental funds reported combined ending fund balances of $312,832,868, an increase of $35,749,739 in comparison with the prior year.

• At the end of the current fiscal year, unreserved fund balance for the general fund was

$155,942,520, or 40% of total general fund expenditures.

• The County’s total General Obligation debt decreased by $4,675,000 (2.3%) during the current fiscal year.

Overview of the Financial Statements

This discussion and analysis is intended to serve as an introduction to Ramsey County’s basic financial statements, which are comprised of three components: 1) government-wide financial statements; 2) fund financial statements; and 3) notes to the financial statements. This report also contains supplementary information in addition to the basic financial statements themselves.

Government-wide Financial Statements - The government-wide financial statements are designed to provide a broad overview of the County’s finances, in a manner similar to a privatesector business.

The Statement of Net Assets presents information on all of Ramsey County’s assets and liabilities, with the difference between the two reported as net assets. Over time, increases or decreases in net assets may serve as a useful indicator of whether the financial position of the

County is improving or deteriorating.

The Statement of Activities presents information showing how the County’s net assets changed during the most recent fiscal year. All changes in net assets are reported as soon as the underlying event giving rise to the change occurs, regardless of the timing of related cash flows.

Thus, revenues and expenses are reported in this statement for some items that will only result in cash flows in future fiscal periods (e.g., uncollected taxes and earned but unused vacation leave).

Page 20

Both of the government-wide financial statements distinguish functions of the County that are principally supported by taxes and intergovernmental revenues (governmental activities) from other functions that are intended to recover all or a significant portion of their costs through user fees and charges (business-type activities). The governmental activities of the County include general government, public safety, highways and streets, sanitation, health, human services, conservation of natural resources, economic development, and culture and recreation. The business-type activities of the County include a nursing home, a home for developmentally delayed residents, special law enforcement services for certain municipalities, and a golf course.

The government-wide financial statements include not only the County itself (known as the primary government), but also a legally separate Regional Railroad Authority and a legally separate Housing & Redevelopment Authority for which Ramsey County is financially accountable. Although legally separate, the County Board of Commissioners serves as the governing board of these organizations. Therefore, they function as departments of the County, and have been included as an integral part of the primary government.

The government-wide financial statements can be found on pages 32-34 of this report.

Fund Financial Statements - A fund is a grouping of related accounts that is used to maintain control over resources that have been segregated for specific activities or objectives. The

County, like other state and local governments, uses fund accounting to ensure and demonstrate compliance with finance-related legal requirements. All of the funds of the County can be divided into three categories: 1) governmental funds, 2) proprietary funds, and 3) fiduciary funds.

1) Governmental funds are used to account for essentially the same functions reported as governmental activities in the government-wide financial statements. However, unlike the government-wide financial statements, governmental fund financial statements focus on near-term inflows and outflows of spendable resources, as well as on balances of spendable resources available at the end of the fiscal year. Such information may be useful in evaluating a government’s near-term financing requirements.

Because the focus of governmental funds is narrower than that of the government-wide financial statements, it is useful to compare the information presented for governmental funds with similar information presented for governmental activities in the government-wide financial statements. By doing so, readers may better understand the long-term impact of the government’s near-term financing decisions. Both the governmental fund balance sheet and the governmental fund statement of revenues, expenditures, and changes in fund balances provide a reconciliation to facilitate this comparison between governmental funds and governmental activities.

The County maintains four governmental fund types: General, Special Revenue, Debt

Service, and Capital Projects. Information is presented separately in the governmental fund balance sheet and in the governmental fund statement of revenues, expenditures, and changes in fund balances for the general fund, capital projects fund, and the debt service fund, which are considered to be major funds. Data from the other governmental funds are combined into

Page 21

a single, aggregated presentation. Individual fund data for each of these nonmajor governmental funds is provided in the form of combining statements elsewhere in this report.

The basic governmental fund financial statements can be found on pages 35-36 of this report.

2) The County maintains two different types of proprietary funds: 1) Enterprise funds are used to report the same functions presented as business-type activities in the government-wide financial statements. The County uses enterprise funds to account for its Nursing Home,

Lake Owasso Residence, Ponds at Battle Creek, and Law Enforcement Services operations.

2) Internal service funds are an accounting device used to accumulate and allocate costs internally among the County’s various functions. The County uses internal service funds to account for its Information Services, Firearms Range, and part of its Property Management operations. Because these services predominantly benefit governmental rather than businesstype functions, they have been included within governmental activities in the governmentwide financial statements.

Proprietary funds provide the same type of information as the government-wide financial statements, only in more detail. The proprietary fund financial statements provide separate information for the Lake Owasso Residence and Ponds at Battle Creek, which are considered major funds. Data for the other two enterprise funds are combined into a single, aggregated presentation. Individual fund data for each nonmajor enterprise fund is provided in the form of combining statements elsewhere in this report. Conversely, internal service funds are combined into a single, aggregated presentation in the proprietary fund financial statements.

Individual fund data for the internal service funds is provided in the form of combining statements elsewhere in this report.

The basic proprietary fund financial statements can be found on pages 38-41 of this report.

3) Fiduciary funds are used to account for resources held for the benefit of parties outside the government. Fiduciary funds are not reflected in the government-wide financial statement because the resources of those funds are not available to support the County’s own programs.

The accounting used for fiduciary funds is much like that used for proprietary funds. Data from the fiduciary funds are combined into a single aggregated presentation. Individual fund data for each fiduciary fund is provided in the form of combining statements elsewhere in this report.

The basic fiduciary fund financial statements can be found on pages 42-43 of this report.

Notes to the Financial Statements - The notes provide additional information that is essential to a full understanding of the data provided in the government-wide and fund financial statements.

The notes to the financial statements can be found on pages 44-75 of this report.

Other Information - In addition to the basic financial statements and accompanying notes, this report presents certain required supplementary information on the general fund budget. Required supplementary information can be found on pages 77-79 of this report. Immediately following the required supplementary information is a budget to actual presentation of the Debt Service

Page 22

Major Fund. After that, the combining statements referred to earlier in connection with nonmajor governmental, enterprise and internal service funds are presented. Combining fund statements and schedules can be found on pages 85-106 of this report.

Government-wide Financial Analysis

As noted earlier, net assets may serve over time as a useful indicator of a government’s financial position. In the case of the County, assets exceeded liabilities by $693,227,255 at the close of the most recent fiscal year.

The largest portion of Ramsey County’s net assets (63.5%) reflects its investment in capital assets (e.g., land, buildings, machinery, and equipment), less any related debt used to acquire those assets that is still outstanding. The County uses these capital assets to provide services to citizens; consequently, these assets are not available for future spending. Although the County’s investment in its capital assets is reported net of related debt, it should be noted that the resources needed to repay this debt must be provided from other sources, since the capital assets themselves cannot be used to liquidate these liabilities.

NET ASSETS

2006 2005 2006 2005 2006 2005

Current and Other Assets

Capital Assets

Total Assets

$394,494,295 $358,233,286 $ 6,734,484

590,521,396 563,782,988

$ 6,955,327

9,977,227 10,413,413

$ 401,228,779 $365,188,613

600,498,623 574,196,401

985,015,691 922,016,274 16,711,711 17,368,740 1,001,727,402 939,385,014

Long-term Liabilities

Outstanding

Other Liabilities

Total Liabilities

Net Assets:

Invested in Capital Assets, Net

of Related Debt

Restricted

Unrestricted

Total Net Assets

208,607,453 218,596,145 10,202,644 10,521,680 218,810,097

86,761,544 82,092,867 2,928,506 2,858,424 89,690,050 84,951,291

295,368,997 300,689,012 13,131,150 13,380,104 308,500,147

437,027,997 411,727,719 3,520,751 3,656,566 440,548,748

84,675,877 92,804,198 50,657 46,163 84,726,534 92,850,361

167,942,820 116,795,345 9,153 285,907 167,951,973 117,081,252

The government’s net assets increased by $67,911,357 during the current fiscal year. This increase is primarily due to increases in infrastructure construction for highways and bridges and building projects.

Governmental Activities - Governmental activities increased the County’s net assets by

$68,319,432, thereby accounting for all of the total growth in the net assets. Key elements of this increase are as follows:

• Capital Assets increased by $26,738,408. The majority of this increase in capital assets was from highway construction and building projects.

Page 23

• Property tax and charges for services collections increased. However, some tax increases were a result of the State reducing aid to the County.

CHANGES IN NET ASSETS

2006 2005 2006 2005 2006 2005

Revenues:

Charges for Services, Fines & Other

Operating Grants & Contributions

Capital Grants & Contributions

General Revenues:

Property Taxes

$ 79,967,637

164,691,555 167,033,301

33,294,903 26,312,763

217,391,017

$ 68,900,222 $24,832,147 $23,845,458 $104,799,784 $

258,573

68,018

198,458,773 -

164,950,128 167,033,301

328,644 33,362,921 26,641,407

-

35,053,797 35,262,802 54,170 314,170 35,107,967 35,576,972

15,581,358

6,391,503 3,971,857 (15,406) 51,186 6,376,097 4,023,043

552,371,770 507,613,634 25,339,527 24,677,079 532,290,713

Restricted to Specific Programs

Investment Earnings

Other

Total Revenues

Expenses:

Public Safety

Highways/Streets

Sanitation

Health

Human Services

Culture & Recreation

Conservation of Natural Resources

Interest

Lake Owasso Residence

Law Enforcement Services

Total Expenses

Increase (Decrease) in Net Assets

Before Transfers

Transfers

Increase (Decrease) in Net Assets

Net Assets – Beginning

Net Assets – End

83,775,008 69,903,388

93,123,718

35,186,475 26,016,187

17,071,936 17,850,477

26,343,037 26,154,048 -

176,236,609 172,133,597 -

18,916,977

413,943

9,433,629

-

103,140,189

21,253,410

421,883

9,259,922 -

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

83,775,008 69,903,388

93,123,718 103,140,189

35,186,475 26,016,187

17,071,936 17,850,477

26,343,037 26,154,048

18,916,977

413,943

21,253,410

421,883

22,931,445 22,774,299

8,177,791 7,700,741 8,177,791 7,700,741

-

-

-

701,798 608,504 701,798 608,504

12,435,723 12,184,848 12,435,723 12,184,848

5,051,851 4,945,064 5,051,851 4,945,064

483,432,777 468,907,400 26,367,163 25,439,157 509,799,940 494,346,557

68,938,993

(619,561)

38,706,234

(558,561)

68,319,432

621,327,262 583,179,589

(1,027,636)

619,561

3,988,636

(762,078)

558,561

67,911,357

-

37,944,156

-

4,192,153 625,315,898 587,371,742

The following charts provide comparisons of governmental activities’ program revenues and expenses and also show the sources of governmental activities’ revenues.

Page 24

Expenses and Program Revenues - Governmental Activities

$180,000,000

$160,000,000

$140,000,000

$120,000,000

$100,000,000

$80,000,000

$60,000,000

$40,000,000

$20,000,000

$-

General

Government

Public

Safety

Highways and

Streets

Sanitation

Expenses Program Revenues

Health Human Services Culture Conservation

& Recreation of Natural

Resources

Economic

Development and Assistance

Interest

Revenues by Source - Governmental Activities

Grants and contributions not restricted to specific programs

6%

Investment earnings

3%

Gain on disposition of fixed assets

1%

Charges for Services

14%

Taxes

39%

Capital Grants and Contributions

6%

Miscellaneous

1%

Operating Grants and Contributions

30%

Business-type Activities - Business-type activities decreased the County’s net assets by

$408,075, a 10.2% decrease from the previous year. Key elements of this decrease are as follows:

• Lake Owasso Residence had a decrease of net assets of $213,697 due to capital expenses not included in the reimbursement rate. However, once the long-term debt and interest have been paid, the property reimbursement rate will continue and finance some of the depreciation expense.

Page 25

• Ponds at Battle Creek had a decrease in net assets of $204,989 due to an operating loss and interest expense. It is anticipated the Golf Course would operate at a loss the first three years until revenues would be sufficient to cover expenses.

The following charts provide comparisons of business-type activities’ program revenues and expenditures and also show the sources of business-type activities’ revenues.

$14,000,000

$12,000,000

$10,000,000

$8,000,000

$6,000,000

$4,000,000

$2,000,000

$-

Lake Owasso Residence

Expenses and Program Revenues - Business-type Activities

Ponds on Battle Creek

Expenses

Ramsey Nursing Home

Program Revenues

Law Enforcement Services

Revenues by Source - Business-type Activities

Charges for Services

96%

Transfer

2%

Investment earnings

1%

Operating Grants and Contributions

1%

Page 26

Financial Analysis of the Government’s Funds

As noted earlier, the County uses fund accounting to ensure and demonstrate compliance with finance-related legal requirements.

Governmental Funds – The focus of the County’s governmental funds is to provide information on near-term inflows, outflows, and balances of spendable resources. Such information is useful in assessing the County’s financing requirements. In particular, unreserved fund balance may serve as a useful measure of a government’s net resources available for spending at the end of the fiscal year.

As of the end of the current fiscal year, the County’s governmental funds reported combined ending fund balances of $312,832,868, a total fund balance increase of $35,749,738 in comparison with the prior year. Approximately 70.1% of this total amount ($219,275,891) constitutes unreserved fund balance, which is available for spending at the government’s discretion. The remainder of fund balance is reserved to indicate that it is not available for new spending, because it has already been committed (1) to liquidate contracts and purchase orders of the prior period ($23,620,062); (2) temporary loans to Other Funds ($8,610,620); or (3) for a variety of other restricted purposes ($61,326,295).

The General Fund is the chief operating fund of Ramsey County. At the end of the current fiscal year, unreserved fund balance of the general fund was $155,942,520, while total fund balance reached $175,980,127. As a measure of the General Fund’s liquidity, it may be useful to compare both unreserved fund balance and total fund balance to total fund expenditures.

Unreserved fund balance represents 40% of total General Fund expenditures, while total fund balance represents 45.1% of that same amount.

The fund balance of the County’s general fund increased by $22,359,777 during the current fiscal year. Key factors in this increase are as follows:

• Better interest rates.

• Unspent funds for future OPEB benefits.

• Settlement of tax increment funds.

The Debt Service Fund had a total fund balance of $55,035,877, all of which is reserved for the payment of debt service. The net decrease in fund balance during the current year in the debt service fund was $10,501. The decrease was due to using a portion of fund balance to finance future debt payments.

The Capital Projects Fund had a fund balance of $24,490,979 planned for construction. The fund balance decreased by $2,286,244, primarily due to completing several major projects.

Proprietary Funds – The County’s proprietary funds provide the same type of information found in the government-wide financial statements, but in more detail.

Page 27

Unrestricted net assets of Lake Owasso Residence at the end of the year amounted to $893,445.

The total decrease in net assets for the fund was $213,697. This was a result of an increase in personal services and interest expense.

Ponds at Battle Creek had a decrease in net assets of $204,989 due to an operating loss and interest expense. The County has provided a temporary loan to help pay the long-term debt until fees can be generated to cover these costs.

General Fund Budgetary Highlights

The difference between the original budget and the final amended budget was an increase of

$11,927,874 in appropriations. Unbudgeted State and Federal revenues became available for additional human service and public safety programs.

The variance of final budget versus actual was due to partially funding future Other Post-

Employment Benefits (OPEB) expenses and project grants that have not been completed.

Capital Asset and Debt Administration

Capital Assets – The County’s investment in capital assets for its governmental and business type activities as of December 31, 2006, amounts to $600,498,623 (net of accumulated depreciation). This investment in capital assets includes land, buildings, improvements, equipment, park facilities, roads, highways, and bridges. The total increase in the County’s investment in capital assets for the current fiscal year was 4.6% (a 4.7% increase for governmental activities and a 4.2% decrease for business-type activities).

Major capital asset events during the current fiscal year included the following:

• A variety of street construction projects continued into 2006; construction in progress as of the end of the current fiscal year had reached $93,964,733, an increase of $15,577,997 from the prior year.

• A Public Safety Communications System continued in 2006 totaling $9,835,983.

• A variety of park improvements were initiated totaling $1,044,004 in 2006.

• Library construction continued in 2006 totaling $9,321,225.

Capital Assets

(Net of Depreciation)

2006 2005 2006 2005 2006 2005

Land $ 80,240,213 $ 76,783,297 $ 107,073 $ 107,073 $ 80,347,286 $ 76,890,370

Buildings & Improvements 202,690,302 206,783,820 6,446,557 6,572,388 209,136,859 213,356,208

Improvements Other Than Buildings

Equipment

15,491,031 15,542,165 2,854,901 2,982,980 18,255,932 18,525,145

Construction in Progress

Total

-

93,938,733 78,270,427 26,000 116,309 93,964,733 78,386,736

$590,521,396 $563,782,988 $9,977,227 $10,413,413 $600,498,623 $574,196,401

Page 28

Additional information on the County’s capital assets can be found in note IV.C on pages 49-50 of this report.

Long-term Debt – At the end of the current fiscal year, the County had total General Obligation bonded debt outstanding of $194,150,000, which is backed by the full faith and credit of the government.

Outstanding Debt

General Obligation and Revenue Bonds

2006 2005 2006 2005 2006 2005

General Obligation Bonds $184,720,000 $189,100,000 $9,430,000 $9,725,000 $194,150,000 $198,825,000

Lease Revenue Bonds

Total

12,895,000 13,375,000 12,895,000 13,375,000

$197,615,000 $202,475,000 $9,430,000 $9,725,000 $207,045,000 $212,200,000

The County’s total bonded debt decreased by $5,155,000 (2.4%) during the current fiscal year.

The decrease was primarily due to various remodeling projects around the County being completed.

The County maintains a “AAA” rating from Standard & Poor’s and a “Aaa” rating from

Moody’s for general obligation debt.

Minnesota state statutes limit the amount of general obligation debt a governmental entity may issue to 2% of its total market value of taxable property in the County. The current debt limitation for the County is $824,887,926, which is significantly in excess of its outstanding general obligation debt.

Additional information on the County’s long-term debt can be found in note IV.I on pages 53-58 of this report.

Economic Factors and Next Year’s Budgets and Rates

• The unemployment rate for the County is currently 3.8%, which is a decrease from a rate of

4.0% a year ago. This compares to the state’s average unemployment rate of 4.0% and the national average rate of 4.6%.

• The County is a fully developed urban center. Its roads and transportation system make access to the County easy for all citizens. Its population continues to grow but at a slower pace than in the previous decades. In 1980, the population was 485,765. In 2005 (latest year available), the population estimated by the Metropolitan Council was 515,258.

• Estimated Market Value of Taxable Property in the County increased almost $4,500,000,000 in 2006 to $41,244,396,300 or 12.2%. Residential property recorded an increase in value of

12.5% while commercial values increased 9.6%.

• Although many of the above indicators appear to show Ramsey County as economically strong and stable, it is important to be aware of some of the other dynamics that may affect it in the coming years. Ramsey is faced with the problems of older urban Counties. Its

Page 29

infrastructure of roads and bridges are aging and will require replacement and rebuilding in the coming years. Taxes will have to be used to effect these changes. This issue has been addressed by a functional consolidation of roads plan developed in 1993. The plan, which is complete, upgrades many roads and bridges in the County. Municipalities will become responsible for maintaining certain County roads and transfer major arterials to the County.

This functional alignment focused additional funds to roads and allowed further use of

County State aid funds.

All of these factors were considered in preparing the County’s budget for the 2006 fiscal year.

During the current fiscal year, unreserved fund balance in the general fund was $155,942,520.

The County has appropriated $318,136 of this amount for spending in the 2007 fiscal year budget. It is intended that this use of available fund balance will lessen the need to raise taxes during the 2007 fiscal year. The 2007 approved budget included a 3.62% increase in spending.

A 6.19% increase in the 2007 Property Tax Levy was approved, in part, to offset the anticipated

State revenue reductions and increased public safety initiatives.

Requests for Information

This financial report is designed to provide a general overview of Ramsey County’s finances for all those with an interest in the government’s finances. Questions concerning any of the information provided in this report or requests for additional financial information should be addressed to the Office of Budgeting & Accounting, Suite 270, 15 West Kellogg Boulevard,

Saint Paul, Minnesota 55102.

Page 30

BASIC FINANCIAL STATEMENTS

Page 31

EXHIBIT 1

RAMSEY COUNTY, MINNESOTA

STATEMENT OF NET ASSETS

DECEMBER 31, 2006

WITH COMPARATIVE TOTALS FOR DECEMBER 31, 2005

Governmental

Activities

Business-type

Activities

ASSETS

Current Assets:

Cash and Cash Equivalents

Cash with Trustee

Restricted Cash and Cash Equivalents

Petty Cash and Change Funds

Imprest Cash

Cooperative Investment

Receivables (Net):

Taxes

Accounts

Cooperative Investment Receivable

Accrued Interest

Internal Balances

Due from Other Governments

Lease Receivable

Loan Receivables

Prepaid Items

Inventories

Total Current Assets

Non Current Assets:

Advance to Other Governments

Advance to Other Organizations

Deferred Charges

Capital Assets not being Depreciated:

Land

Construction in Progress

Capital Assets being Depreciated:

Improvements other than Buildings

Buildings

Building Improvements

Equipment

Infrastructure

Less: Accumulated Depreciation

Total Non Current Assets

Total Assets

$ 297,906,467

18,227,581

3,000

26,015

60,000

-

2,797,237

3,545,706

-

3,327,827

1,953,811

31,683,630

18,642,000

13,009,781

105,003

1,532,228

392,820,286

57,893

343,121

1,272,995

80,240,213

93,938,733

34,136,187

252,789,338

11,574,166

62,711,899

357,587,007

(302,456,147)

592,195,405

985,015,691

$

2006

Total

2005

-

-

38,271

107,073

26,000

3,654,711

9,491,866

1,567,077

2,471,136

-

(7,340,636)

10,015,498

16,711,711

3,276,415

3,136,568

-

20,500

-

30,913

-

387,801

17,244

47,383

(1,953,811)

1,679,009

-

-

-

54,191

6,696,213

$ 301,182,882

21,364,149

3,000

46,515

60,000

30,913

2,797,237

3,933,507

17,244

3,375,210

-

33,362,639

18,642,000

13,009,781

105,003

1,586,419

399,516,499

57,893

343,121

1,311,266

80,347,286

93,964,733

37,790,898

262,281,204

13,141,243

65,183,035

357,587,007

(309,796,783)

602,210,903

1,001,727,402

$ 267,278,221

21,978,694

1,000

46,190

60,000

84,255

1,891,101

3,174,957

2,271,356

-

34,354,820

19,302,000

11,727,509

184,623

1,305,653

363,660,379

57,893

55,621

1,414,720

76,890,370

78,386,736

38,994,560

262,252,072

11,669,674

62,568,126

339,378,052

(295,943,189)

575,724,635

939,385,014

(continued)

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

Page 32

RAMSEY COUNTY, MINNESOTA

STATEMENT OF NET ASSETS

DECEMBER 31, 2006

WITH COMPARATIVE TOTALS FOR DECEMBER 31, 2005

Governmental

Activities

Business-type

Activities

LIABILITIES

Current Liabilities:

Salaries Payable

Accounts Payable

Contracts Payable

Interest Payable, Current

Unamortized Premium on Bonds

Loan Payable, Current

Capital Lease, Current

Due to Other Governments

General Obligation and Revenue Bonds

Payable, Current

Claims and Judgments Payable, Current

Vacation and Compensatory Time Payable

Current Liabilities Payable from Restricted Assets:

Customer Deposits Payable

Total Current Liabilities

Non Current Liabilities:

Advance from other Governments

Unearned Revenue

General Obligation and Revenue Bonds

Payable, Long-term

Unamortized Premium on Bonds

Loans Payable, Long-term

Capital Lease, Long-term

Compensated Absences Payable

Claims and Judgments Payable, Long-term

Total Non Current Liabilities

Total Liabilities

8,554,470

16,425,469

3,632,676

3,996,125

263,072

18,482

51,960

5,804,458

20,740,000

2,076,737

14,369,696

3,000

75,936,145

6,150,483

4,674,916

183,117,000

4,040,622

52,413

55,552

17,615,891

3,725,975

219,432,852

295,368,997

771,814

274,246

-

200,167

3,999

-

-

305,950

310,000

-

1,062,330

-

2,928,506

9,120,000

246,673

-

-

835,971

-

10,202,644

13,131,150

-

-

NET ASSETS

Invested in Capital Assets, Net of Related Debt

Restricted for:

Debt Service

Capital Projects

Solid Waste

Other Purposes

Unrestricted

Total Net Assets $

437,027,997

55,035,877

7,136,167

20,565,333

1,938,500

167,942,820

689,646,694 $

EXHIBIT 1

(continued)

2006

Total

9,326,284

16,699,715

3,632,676

4,196,292

267,071

18,482

51,960

6,110,408

21,050,000

2,076,737

15,432,026

3,000

78,864,651

6,150,483

4,674,916

192,237,000

4,287,295

52,413

55,552

18,451,862

3,725,975

229,635,496

308,500,147

2005

8,976,709

18,881,208

2,872,986

4,162,760

4,482,750

7,309

48,600

4,736,287

12,070,000

2,489,239

14,663,490

1,000

73,392,338

5,956,340

5,602,613

206,537,000

246,673

3,385

107,512

18,712,755

3,510,500

240,676,778

314,069,116

3,520,751

-

50,657

-

-

9,153

3,580,561

440,548,748

55,035,877

7,186,824

20,565,333

1,938,500

167,951,973

$ 693,227,255

415,384,285

$

47,927,313

2,397,863

16,434,800

1,664,862

141,506,775

625,315,898

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

Page 33

EXHIBIT 2

RAMSEY COUNTY, MINNESOTA

STATEMENT OF ACTIVITIES

FOR THE YEAR ENDED DECEMBER 31, 2006

WITH COMPARATIVE TOTALS FOR THE YEAR ENDED DECEMBER 31, 2005

Functions/Programs

Governmental Activities:

General Government

Public Safety

Highways and Streets

Sanitation

Health

Human Services

Culture and Recreation

Conservation of Natural Resources

Economic Development and Assistance

Interest

Total Governmental Activities

Business-type Activities:

Lake Owasso Residence

Ponds at Battle Creek

Ramsey Nursing Home

Law Enforcement Services

Total Business-type Activities

Total Government

Expenses

$ 83,775,008

93,123,718

35,186,475

17,071,936

26,343,037

176,236,609

18,916,977

413,943

22,931,445

9,433,629

483,432,777

Fees, Fines,

Charges and Other

$ 25,586,857

8,350,392

2,451,634

19,659,083

8,166,676

7,773,517

6,010,116

302,760

1,666,602

-

79,967,637

Program Revenues

Operating

Grants and

Contributions

Capital

Grants and

Contributions

$ 11,750,858

13,857,784

4,261,815

1,506,761

11,983,024

98,980,847

677,345

77,584

21,595,537

-

164,691,555

$ 1,256,573

6,195,938

24,239,254

-

-

-

1,603,138

-

-

-

33,294,903

8,177,791

701,798

12,435,723

5,051,851

26,367,163

$ 509,799,940

7,630,384

446,901

11,949,961

4,804,901

24,832,147

-

-

-

258,573

258,573

$ 164,950,128

General revenues:

Property Taxes

Grants and Contributions Not Restricted to Specific Programs

Investment Earnings

Miscellaneous

Gain (Loss) on Disposition of Capital Assets

Transfer

Total General Revenues and Transfers

Change in Net Assets

Net Assets - Beginning

Net Assets - Ending

-

-

68,018

-

68,018

$ 33,362,921

Net (Expense) Revenue and Changes in Net Assets

Governmental

Activities

Business-type

Activities

$ (45,180,720)

(64,719,604)

(4,233,772)

4,093,908

(6,193,337)

(69,482,245)

(10,626,378)

(33,599)

330,694

(9,433,629)

(205,478,682)

$ -

-

-

-

-

-

-

-

-

-

-

Total

2006 2005

$ (45,180,720)

(64,719,604)

(4,233,772)

4,093,908

(6,193,337)

(69,482,245)

(10,626,378)

(33,599)

330,694

(9,433,629)

(205,478,682)

$ (31,415,232)

(75,412,886)

(2,945,134)

421,897

(5,372,706)

(71,959,284)

(13,139,570)

(59,922)

2,481,645

(9,259,922)

(206,661,114)

-

-

-

-

-

(205,478,682)

(547,407)

(254,897)

(417,744)

11,623

(1,208,425)

(1,208,425)

(547,407)

(254,897)

(417,744)

11,623

(1,208,425)

(206,687,107)

(222,717)

(177,769)

(533,179)

(331,390)

(1,265,055)

(207,926,169)

217,391,017

35,053,797

15,581,358

3,032,751

3,358,752

(619,561)

273,798,114

68,319,432

621,327,262

$ 689,646,694

-

54,170

142,025

1,575

(16,981)

619,561

800,350

(408,075)

3,988,636

$ 3,580,561

217,391,017

35,107,967

15,723,383

3,034,326

3,341,771

-

274,598,464

67,911,357

625,315,898

$ 693,227,255

198,458,773

35,576,972

7,811,537

3,498,023

525,020

-

245,870,325

37,944,156

587,371,742

$ 625,315,898

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

Page 34

RAMSEY COUNTY, MINNESOTA

BALANCE SHEET

GOVERNMENTAL FUNDS

DECEMBER 31, 2006

WITH COMPARATIVE TOTALS FOR DECEMBER 31, 2005

EXHIBIT 3

Capital

Service Projects

Other

Governmental

Funds

Total

Governmental

Funds

2006 2005

ASSETS

Cash and Cash Equivalents

Cash with Trustee

Petty Cash and Change Funds

Imprest Cash

Receivables (Net):

Taxes

Accounts

Accrued Interest

Due from Other Funds

Due from Other Governments

Lease Receivable

Loans Receivable

Inventories

Advance to Other Funds

Advance to Other Governments

Advance to Other Organizations

Restricted Cash and Cash Equivalents

Total Assets

$ 171,880,028 $ 17,595,986 $ 35,199,523 $ 61,526,344 $ 286,201,881 $ 252,388,552

-

23,030

60,000

3,891,688

1,342,412

2,938,838

436,821

22,150,442

-

6,245,000

1,469,116

8,041,606

50,893

343,121

2,000

218,874,995

17,856,745

-

-

366,283

-

304,977

506,169

-

18,642,000

250,000

-

-

-

-

-

55,522,160

370,836

-

-

-

774

1,527

-

4,202,824

-

-

-

175,000

-

-

-

39,950,484

-

2,910

-

307,804

2,194,922

82,485

1,386

5,220,831

-

6,514,781

55,847

-

7,000

-

-

75,914,310

LIABILITIES AND FUND BALANCES

Liabilities:

Salaries Payable

Accounts Payable

Contracts Payable

Due to Other Funds

Due to Other Governments

Deferred Revenue

Advance from Other Funds

Advance from Other Governments

Claims and Judgments Payable

Liabilities Payable from Restricted Assets

Total Liabilities

Fund Balances:

Reserved for:

Encumbrances

Advances

Inventories

Petty Cash

Aggregate Material Pit Restoration

Debt Service with Trustee

Debt Service Fund

Lease Receivable

Unreserved, Reported in:

General Fund

Special Revenue Funds

Capital Projects Fund

Total Fund Balances

Total Liabilities and Fund Balances

7,375,272

13,789,517

-

916,211

3,266,801

15,942,054

-

1,514,801

88,212

2,000

42,894,868

9,930,871

8,435,620

1,469,116

83,030

118,970

-

-

-

-

-

-

-

-

366,283

-

120,000

-

-

486,283

-

-

-

-

-

18,131,722

18,262,155

18,642,000

-

1,316,568

3,368,173

1,494

189,108

3,938,480

2,130,000

4,515,682

-

-

15,459,505

11,651,041

175,000

-

-

-

-

-

-

927,777

759,408

264,503

365,036

2,162,942

9,397,759

4,711,000

-

-

-

18,588,425

2,038,150

-

-

-

55,847

2,810

4,560,645

-

155,942,520

-

-

175,980,127

-

55,035,877

-

-

-

-

12,664,938

24,490,979

-

50,668,433

-

57,325,885

$ 218,874,995 $ 55,522,160 $ 39,950,484 $ 75,914,310

Amounts reported for governmental activities in the statement of net assets are different because:

Capital assets used in governmental activities are not financial resources and, therefore,

are not reported in the funds.

Other long-term assets are not available to pay for current-period expenditures and, therefore, are deferred in the funds.

Internal services funds are used by management to charge the costs of management information systems and property management services to individual funds. The

assets and liabilities of the internal services funds are included in governmental activities

in the Statement of Net Assets.

Long-term liabilities, including bonds payable, are not due and payable in the current

period, and therefore are not reported in the funds.

Net assets of governmental activities

18,227,581

25,940

60,000

4,565,775

3,538,108

3,327,827

944,376

31,574,097

18,642,000

13,009,781

1,524,963

8,216,606

57,893

343,121

2,000

390,261,949

8,303,049

15,865,493

3,632,676

1,282,741

5,618,851

29,644,576

6,841,000

6,150,483

88,212

2,000

77,429,081

23,620,062

8,610,620

1,524,963

85,840

118,970

18,131,722

22,822,800

18,642,000

155,942,520

50,668,433

12,664,938

312,832,868

587,420,769

23,162,546

13,964,488

(247,733,977)

18,810,477

25,615

60,000

3,606,001

2,842,974

2,239,925

799,963

32,986,418

19,302,000

11,727,509

1,238,326

10,865,606

57,893

55,621

-

357,006,880

8,033,717

17,530,190

2,872,986

1,305,027

4,280,995

30,321,256

9,490,000

5,956,340

133,239

-

79,923,750

22,228,563

10,972,120

1,238,326

85,515

114,604

17,974,866

17,769,512

19,302,000

135,073,134

40,037,182

12,287,308

277,083,130

560,347,674

22,965,167

13,493,650

(252,562,359)

$ 689,646,694 $ 621,327,262

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

Page 35

EXHIBIT 4

RAMSEY COUNTY, MINNESOTA

STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES

GOVERNMENTAL FUNDS

FOR THE YEAR ENDED DECEMBER 31, 2006

WITH COMPARATIVE TOTALS FOR THE YEAR ENDED DECEMBER 31, 2005

REVENUES

Taxes

Licenses and Permits

Intergovernmental

Private Grants and Donations

Charges for Services

Fines and Forfeitures

Sales

Rental Income

Investment Earnings

Program Recoveries - Community

Human Services

Miscellaneous

Total Revenues

EXPENDITURES

Current:

General Government

Public Safety

Highways and Streets

Sanitation

Health

Human Services

Culture and Recreation

Conservation of Natural Resources

Economic Development and Assistance

Capital Projects:

General Government

Public Safety

Highways and Streets

Health

Human Services

Culture and Recreation

Conservation of Natural Resources

Debt Service:

Bond Issuance Costs

Principal Retirement

Interest

Total Expenditures

Excess (Deficiency) of Revenues

Over (Under) Expenditures

OTHER FINANCING SOURCES (USES)

Xcel Energy Loan Proceeds

Bonds Issued

Discount/Premium on Sale of Bonds

Sale of Capital Assets

Redemption of Refunded Bonds

Transfers In

Transfers Out

Total Other Financing Sources (Uses)

Net Change in Fund Balances

Other

Capital Governmental

Service Funds

$ 178,759,012 $ 16,695,047 $

619,459

169,360,189

139,492

40,660,735

7,200

-

1,038,495

1,575,167

1,350,838

12,487,790

-

-

-

-

-

1,615,761

32,528,016

-

-

$

1,252

-

-

-

1,487,484

3,790,928

4,361,295

413,112,105

-

-

19,349,303

-

287,757

34,304,509

21,220,591 $

775,421

39,763,817

283,324

21,382,773

738,771

1,273,630

307,372

1,969,144

-

880,564

88,595,407

72,161,466

92,744,242

14,898,949

641,305

18,763,245

178,310,893

9,114,241

406,016

-

-

613,358

1,831,786

-

-

587,489

-

-

60,252

11,699

390,144,941

22,967,164

76,940

-

-

-

-

1,127

(685,454)

(607,387)

22,359,777

-

11,775,000

9,361,854

21,136,854

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

1,385,385

11,313,799

25,838,308

121,250

108,346

8,330,915

4,168

70,093

-

-

47,172,264

-

-

-

-

-

-

-

-

(1,787,551) (12,867,755)

-

1,777,050

-

-

-

-

-

1,777,050

(10,501)

-

6,750,000

31,046

6,000,000

-

-

(1,839,535)

10,941,511

(1,926,244)

15,418,334

1,233,908

-

16,385,988

8,857,427

169,005

8,702,152

-

22,915,902

-

-

-

-

-

-

-

-

-

-

73,682,716

14,912,691

-

553,362

(425,984)

-

-

-

-

127,378

15,040,069

87,579,800

93,978,150

14,898,949

17,027,293

27,620,672

178,479,898

17,816,393

406,016

22,915,902

1,385,385

11,927,157

27,670,094

121,250

108,346

8,918,404

4,168

70,093

11,835,252

9,373,553

532,136,775

Total

Governmental

Funds

2006 2005

216,674,650 $ 197,333,878

1,394,880

242,690,517

422,816

62,043,508

745,971

2,850,049

1,658,210

17,560,179

1,410,846

216,905,306

621,000

64,869,125

761,722

2,804,900

1,387,051

9,187,327

3,790,928

5,529,616

555,361,324

3,948,060

7,104,859

506,334,074

23,224,549

76,940

6,750,000

31,046

6,000,000

-

2,331,539

(2,950,973)

12,238,552

35,463,101

88,857,578

89,586,294

14,321,647

17,852,048

26,459,940

174,403,870

17,452,152

438,555

22,734,910

3,553,088

11,115,395

17,386,561

30,275

317,926

6,556,647

-

134,111

11,913,241

9,660,213

512,774,451

(6,440,377)

-

17,575,000

1,057,776

756,306

(10,505,000)

226,989

(805,676)

8,305,395

1,865,018

Fund Balances - Beginning

Prior Period Adjustment

Fund Balances - Beginning, as Restated

Increase (decrease) in reserve for inventories

153,344,699

-

153,344,699

275,651

55,046,378

-

55,046,378

-

26,777,223

(360,000)

26,417,223

-

Fund Balances - Ending $ 175,980,127 $ 55,035,877 $ 24,490,979 $

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

41,914,829

360,000

42,274,829

10,987

57,325,885 $

277,083,129

-

277,083,129

286,638

272,974,120

2,091,000

275,065,120

152,992

312,832,868 $ 277,083,130

Page 36

EXHIBIT 5

RAMSEY COUNTY, MINNESOTA

RECONCILIATION OF THE STATEMENT OF REVENUES, EXPENDITURES AND CHANGES

IN FUND BALANCES OF GOVERNMENTAL FUNDS TO THE STATEMENT OF ACTIVITIES

FOR THE YEAR ENDED DECEMBER 31, 2006

WITH COMPARATIVE AMOUNTS FOR THE YEAR ENDED DECEMBER 31, 2005

Net change in fund balances - total governmental funds (Exhibit 4)

Amounts reported for governmental activities in the Statement of Activities (Exhibit 2) 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 estimated useful lives and reported as depreciation expense. This is the amount by which capital outlays exceeded depreciation in the current period.

The net effect of various miscellaneous transactions involving capital assets (i.e., sales, trade-ins, and donations) is to decrease net assets.

Revenues in the statement of activities that do not provide current financial resources are not reported as revenues in the funds.

The issuance of long-term debt (e.g. bonds) provides current financial resources to governmental funds, while the repayment of the principal of long-term debt consumes the current financial resources of governmental funds. Neither transaction, however, has any effect on net assets. Also, the governmental funds report the effect of issuance costs, premiums, discounts, and similar items when debt is first issued, whereas these amounts are deferred and amortized in the statement of activities. This amount is the net effect of these differences in the treatment of long-term debt and related items.

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.

Internal service funds are used by management to charge the costs of management information systems and property management services to individual funds.

The net revenue of certain activities of internal service funds is reported with governmental activities.

Net change in net assets of governmental activities (Exhibit 2)

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

$

2006

35,463,101 $

2005

1,865,018

29,860,121

(2,787,026)

197,379

25,922,835

(854,029)

8,167,679

4,977,266

137,626

367,379

3,785,465

(1,519,078)

675,976

$

103,586

68,319,432 $

103,807

38,147,673

Page 37

RAMSEY COUNTY, MINNESOTA

STATEMENT OF NET ASSETS

PROPRIETARY FUNDS

DECEMBER 31, 2006

WITH COMPARATIVE TOTALS FOR DECEMBER 31, 2005

Business-type Activities - Enterprise Funds

Lake Owasso

Residence

Ponds at

Battle

Creek

Other

Enterprise

Funds 2006

Total

ASSETS

Current Assets:

Cash and Cash Equivalents

Cash with Fiscal Agent

Petty Cash and Change Funds

Cooperative Investment

Accounts Receivable (Net)

Cooperative Investment Receivable

Accrued Interest Receivable

Due from Other Funds

Due from Other Governments

Prepaid Items

Inventories

Restricted Cash and Cash Equivalents

Total Current Assets

Noncurrent Assets:

Deferred Charges

Capital Assets:

Land

Improvements Other Than Buildings

Buildings

Building Improvements

Equipment

Construction in Progress

Less Accumulated Depreciation

Total Capital Assets (Net of

Accumulated Depreciation)

Total Noncurrent Assets

Total Assets

$ 1,766,092

3,136,568

6,500

-

47,383

-

-

-

637,933

-

26,344

-

5,620,820

26,248

7,873

648,856

4,040,708

23,348

489,318

-

(1,187,799)

4,022,304

4,048,552

9,669,372

$ 506,069

-

-

-

5,013

-

-

-

-

-

-

-

511,082

12,023

-

2,581,891

933,506

-

379,646

-

(683,992)

3,223,074

3,223,074

3,734,156

$ 1,004,254

-

14,000

30,913

382,788

17,244

-

-

1,041,076

-

27,847

-

2,518,122

-

99,200

423,964

4,517,652

1,543,729

1,602,172

26,000

(5,468,845)

2,743,872

2,743,872

5,261,994

$ 3,276,415

3,136,568

20,500

30,913

387,801

17,244

47,383

-

1,679,009

-

54,191

-

8,650,024

38,271

107,073

3,654,711

9,491,866

1,567,077

2,471,136

26,000

(7,340,636)

9,977,227

10,015,498

18,665,522

2005

$ 3,547,431

3,168,217

20,500

84,255

314,035

-

31,431

-

1,296,342

42,225

61,513

-

8,565,949

39,684

107,073

3,654,711

9,491,866

1,373,447

2,437,578

116,309

(6,767,571)

10,413,413

10,453,097

19,019,046

EXHIBIT 6

Governmental Activities -

Internal Service Funds

2006 2005

$ 11,704,586

-

75

-

7,598

-

-

1,030,961

109,533

105,003

7,265

1,000

12,966,021

-

-

19,698

-

7,495,865

8,573,939

-

(12,988,875)

3,100,627

3,100,627

16,066,648

$ 11,342,238

-

75

-

17,948

-

-

947,514

72,060

142,398

5,814

1,000

12,529,047

-

-

6,973

-

6,896,681

8,751,358

127,693

(12,347,391)

3,435,314

3,435,314

15,964,361

LIABILITIES

Current Liabilities:

Salaries Payable

Accounts Payable

Interest Payable

Unamortized Bond Discount/Premium

Loan Payable

Due to Other Funds

Due to Other Governments

General Obligation Bonds Payable - Current

Vacation and Compensatory Time Payable

Payable from Restricted Assets:

Customer Deposits Payable

Total Current Liabilities

Noncurrent Liabilities:

Loan Payable

General Obligation Bonds Payable

Unamortized Bond Discount/Premium

Advance from Other Funds

Compensated Absences Payable

Total Noncurrent Liabilities

Total Liabilities

257,069

38,743

141,284

-

-

9,345

10,032

170,000

352,312

-

978,785

-

6,210,000

246,673

378,206

393,093

7,227,972

8,206,757

2,295

2,610

58,883

3,999

-

512,129

339

140,000

4,765

-

725,020

-

2,910,000

-

947,400

3,229

3,860,629

4,585,649

512,450

232,893

-

-

-

54,764

295,579

-

705,253

-

1,800,939

-

50,000

-

-

439,649

489,649

2,290,588

NET ASSETS

Invested in Capital Assets, Net of Related Debt

Restricted for Capital Projects

Unrestricted

Total Net Assets $

569,170

-

893,445

1,462,615 $

207,709

50,657

(1,109,859)

(851,493)

Adjustment to reflect the consolidation of internal service fund activities related to enterprise funds.

Net Assets of Business-Type Activities

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

$

2,743,872

-

227,534

2,971,406

771,814

274,246

200,167

3,999

-

576,238

305,950

310,000

1,062,330

-

3,504,744

-

9,120,000

246,673

1,375,606

835,971

11,578,250

15,082,994

709,424

317,603

147,144

4,265

-

276,614

400,895

295,000

984,093

-

3,135,038

-

9,430,000

246,673

1,375,606

845,007

11,897,286

15,032,324

251,421

559,976

-

-

2,339

116,358

33,761

-

485,286

1,000

1,450,141

335

-

-

-

653,651

653,986

2,104,127

233,568

1,033,415

-

-

4,750

165,836

15,821

-

427,572

1,000

1,881,962

3,011

586,835

-

-

-

583,824

2,468,797

$

3,520,751

50,657

11,120

3,582,528

3,656,566

46,163

283,993

3,986,722

(1,967)

3,580,561

1,914

$ 3,988,636

$

3,100,627

-

10,861,894

13,962,521 $

3,435,314

-

10,060,250

13,495,564

Page 38

EXHIBIT 7

RAMSEY COUNTY, MINNESOTA

STATEMENT OF REVENUES, EXPENSES AND CHANGES IN FUND NET ASSETS

PROPRIETARY FUNDS

FOR THE YEAR ENDED DECEMBER 31, 2006

WITH COMPARATIVE TOTALS FOR THE YEAR ENDED DECEMBER 31, 2005

Business-type Activities - Enterprise Funds

Ponds at Other

Lake Owasso

Residence

Battle

Creek

Enterprise

Funds 2006

Total

OPERATING REVENUES:

Charges for Services

Sales

Rental Income

Miscellaneous

Total Operating Revenues

$ 7,630,384

-

-

-

7,630,384

$ 390,230

-

53,668

3,003

446,901

$ 16,721,624

763

-

32,475

16,754,862

$ 24,742,238

763

53,668

35,478

24,832,147

2005

$ 23,731,365

1,510

52,408

60,175

23,845,458

OPERATING EXPENSES:

Personal Services

Other Services and Charges

Supplies

Depreciation

Total Operating Expenses

6,510,964

708,935

354,517

214,606

7,789,022

(158,638)

234,690

123,469

69,880

131,631

559,670

(112,769)

NONOPERATING REVENUES (EXPENSES):

Intergovernmental Revenue

Investment Earnings

Amortization of Bond Issuance Costs

Interest Expense

Gain (Loss) on Disposal of Capital Assets

Gain (Loss) on Sale of Capital Assets

Miscellaneous Revenue

Total Nonoperating Revenues (Expenses)

Income before Contributions and Transfers

Capital Contributions

Transfers In

Transfers Out

Change in Net Assets

Total Net Assets - Beginning

Total Net Assets - Ending $

19,968

113,324

(610)

(386,911)

-

-

-

(254,229)

(412,867)

-

199,170

-

(213,697)

1,676,312

1,462,615 $

Adjustment to reflect the consolidation of internal service fund activities

related to enterprise funds.

Change in Net Assets of Business-type Activities (Exhibit 2)

-

-

(536)

(141,684)

-

-

-

(142,220)

(254,989)

-

50,000

-

(204,989)

(646,504)

(851,493) $

13,294,573

2,857,571

971,903

360,802

17,484,849

(729,987)

292,775

28,701

-

-

(23,188)

6,207

1,575

306,070

(423,917)

68,018

370,391

-

14,492

2,956,914

2,971,406

$

20,040,227

3,689,975

1,396,300

707,039

25,833,541

(1,001,394)

312,743

142,025

(1,146)

(528,595)

(23,188)

6,207

1,575

(90,379)

(1,091,773)

68,018

619,561

-

(404,194)

(3,881)

(408,075) $

19,078,317

4,109,237

1,196,995

700,601

25,085,150

(1,239,692)

314,170

137,622

(1,149)

(354,180)

25,905

20,555

4,725

147,648

(1,092,044)

328,644

558,561

-

(204,839)

1,322

(203,517)

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

Governmental Activities -

Internal Service Funds

2006 2005

$ 18,712,266

5,136

-

168,319

18,885,721

$ 18,593,579

2,167

-

25,946

18,621,692

7,615,033

9,542,256

397,385

888,776

18,443,450

442,271

6,768,025

9,777,302

431,387

888,546

17,865,260

756,432

24,008

-

-

-

805

-

-

24,813

467,084

-

-

(127)

466,957

$

13,495,564

13,962,521

24,132

-

-

-

541

-

24,673

-

781,105

-

-

-

781,105

$

12,714,459

13,495,564

Page 39

EXHIBIT 8

RAMSEY COUNTY, MINNESOTA

STATEMENT OF CASH FLOWS

PROPRIETARY FUNDS

FOR THE YEAR ENDED DECEMBER 31, 2006

WITH COMPARATIVE TOTALS FOR THE YEAR ENDED DECEMBER 31, 2005

Lake Owasso

Residence

Business-type Activities - Enterprise Funds

Ponds at Other

Battle

Creek

Enterprise

Funds 2006

Total

CASH FLOWS FROM OPERATING ACTIVITIES

Receipts from Customers and Users

Receipts from Interfund Services Provided

Payments to Suppliers

Payments to Employees

Payments for Interfund Services Used

Net Cash Provided (Used) for

Operating Activities

$ 7,607,290

-

(1,057,710)

(6,433,397)

-

116,183

$ 445,964

-

(193,553)

(233,722)

-

18,689

$ 16,273,297

-

(3,995,540)

(13,241,787)

-

(964,030)

$ 24,326,551

-

(5,246,803)

(19,908,906)

-

(829,158)

2005

$ 24,107,220

-

(5,704,243)

(19,009,344)

(450)

(606,817)

CASH FLOWS FROM NONCAPITAL

FINANCING ACTIVITIES

Intergovernmental Revenue

Transfers In

Transfers Out

Interfund Loans

Miscellaneous Revenue

Net Cash Provided (Used) for

Noncapital Financing Activities

CASH FLOWS FROM CAPITAL AND

RELATED FINANCING ACTIVITIES

Interfund Loans

Proceeds from the Sale of Capital Assets

Proceeds from Refunding Bonds

Purchases of Capital Assets

Principal Paid on Capital Debt

Interest Paid on Capital Debt

Disposal of Capital Assets

Repayment of Loan

Net Cash Provided (Used) for Capital

and Related Financing Activities

CASH FLOWS FROM INVESTING ACTIVITIES

Proceeds from Sale of Investments

Dividend Received

Gain on Sale of Investment

Interest Income

Net Cash Provided (Used) for

Investing Activities

Net Increase (Decrease) in Cash and

Cash Equivalents

Cash and Cash Equivalents, January 1

Cash and Cash Equivalents, December 31

19,968

199,170

-

-

-

219,138

-

-

-

(5,645)

(160,000)

(332,059)

-

-

(497,704)

-

97,372

-

-

97,372

(65,011)

4,974,171

$ 4,909,160 $

-

204,803

-

-

204,803

278,513

-

-

(135,000)

(143,513)

-

-

-

-

223,492

282,577

506,069

-

-

-

-

-

292,775

357,906

-

-

1,575

652,256

-

25,530

-

(239,701)

-

-

-

-

(214,171)

32,521

32,278

-

-

64,799

(461,146)

1,479,400

$ 1,018,254

312,743

557,076

-

204,803

1,575

1,076,197

278,513

25,530

-

(380,346)

(303,513)

(332,059)

-

-

(711,875)

32,521

32,278

-

97,372

162,171

(302,665)

6,736,148

$ 6,433,483

314,170

557,076

-

-

4,725

875,971

-

41,555

3,168,217

(246,934)

(285,000)

(286,503)

45,245

-

2,436,580

-

25,067

25,619

-

50,686

2,756,420

3,979,728

$ 6,736,148 $

$

Governmental Activities -

Internal Service Funds

2006 2005

1,414,313

17,360,839

(8,804,745)

(7,469,639)

(1,603,930)

896,838

$ 11,775,872

7,265,382

(9,729,940)

(6,682,057)

(425,779)

2,203,478

24,008

-

(127)

-

-

23,881

-

805

-

(554,089)

-

-

-

(5,087)

(558,371)

362,348

11,343,313

11,705,661

-

-

-

-

-

24,132

-

-

-

-

24,132

-

797

-

(736,998)

-

-

-

(5,240)

(741,441)

1,486,169

9,857,144

$ 11,343,313

-

-

-

-

-

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

Page 40

RAMSEY COUNTY, MINNESOTA

STATEMENT OF CASH FLOWS

PROPRIETARY FUNDS

FOR THE YEAR ENDED DECEMBER 31, 2006

WITH COMPARATIVE TOTALS FOR THE YEAR ENDED DECEMBER 31, 2005

Business-type Activities - Enterprise Funds

Ponds at

Battle

Creek

Other

Enterprise

Funds 2006

Total Lake Owasso

Residence

Reconciliation of Operating Income to Net

Cash Provided (Used) by Operating Activities:

Operating Income (Loss)

Adjustments to Reconcile Operating Income to Net

Cash Provided (Used) by Operating Activities:

Depreciation Expense

Noncash Transfers

Provision for Uncollectible Accounts

Loan Payable included in Electrical Expense

Changes in Assets and Liabilities:

(Increase) Decrease in Accounts Receivable

(Increase) Decrease in Due from Other Funds

(Increase) Decrease in Due from Other Governments

(Increase) Decrease in Prepaid Items

(Increase) Decrease in Inventories

Increase (Decrease) in Salaries Payable

Increase (Decrease) in Accounts Payable

Increase (Decrease) in Due to Other Funds

Increase (Decrease) in Due to Other Governments

Increase (Decrease) in Estimated Payable

$

for Outstanding Claims

Increase (Decrease) in Vacation and

Compensatory Time Payable

Increase (Decrease) in Compensated

Absences Payable

Net Cash Provided (Used) by Operating Activities $

(158,638)

214,606

-

-

-

(23,094)

-

-

-

3,448

26,252

(3,897)

4,713

1,477

-

33,668

17,648

116,183 $

(112,769)

131,631

-

-

-

(938)

-

-

-

-

385

(569)

122

(24)

-

(1,172)

2,023

18,689

$

$

(729,987)

360,802

12,485

30,000

-

(102,828)

-

(359,573)

42,225

3,874

35,753

(38,891)

(138,526)

(96,398)

-

45,741

(28,707)

(964,030)

$

$

(1,001,394)

707,039

12,485

30,000

-

(126,860)

-

(359,573)

42,225

7,322

62,390

(43,357)

(133,691)

(94,945)

-

78,237

(9,036)

(829,158)

$

$

2005

(1,239,692)

700,601

1,485

(9,500)

-

(32,350)

-

275,933

(42,225)

(5,699)

25,663

59,465

(204,366)

73,557

(253,000)

37,967

5,344

(606,817)

$

$

EXHIBIT 8

(Continued)

Governmental Activities -

Internal Service Funds

2006 2005

442,271

888,776

-

-

-

(8,506)

(83,447)

(37,453)

37,395

(1,451)

17,853

(454,634)

(49,427)

17,920

-

57,714

69,827

896,838

$

$

756,432

888,545

-

-

13,001

(11,185)

377,201

53,544

39,295

(95)

1,353

11,499

(20,178)

9,447

-

51,415

33,204

2,203,478

Noncash Capital and Related Financing Activity:

Contributions of Capital Assets in the Ramsey Nursing Home Fund amounted to $65,860 and $317,928 in 2006 and 2005 respectively.

The fair value of Ramsey Nursing Home Investment decreased by $50,847 in 2005, and decreased by $53,342 in 2006.

Disposal of Capital Assets had a Net Book Value of $23,188 in 2006 and $1,046 in 2005 for the Ramsey Nursing Home.

The Internal Service Funds disposed of capital assets with a net book value of zero.

Transfer In of $50,000 from Capital Projects Funds was used to reduce Due to Other Funds for Ponds at Battle Creek.

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

Page 41

EXHIBIT 9

ASSETS

Cash and Cash Equivalents

Petty Cash and Change Funds

Receivables:

Taxes

Accounts

Due from Other Governments

Advance to Other Governments

Total Assets

LIABILITIES

Salaries Payable

Custodial Payable

Due to Other Governments

Total Liabilities

NET ASSETS

Held in trust for private purposes

RAMSEY COUNTY, MINNESOTA

STATEMENT OF FIDUCIARY NET ASSETS

FIDUCIARY FUNDS

DECEMBER 31, 2006

WITH COMPARATIVE TOTALS FOR DECEMBER 31, 2005

$

2006

Private

Purpose

Trust Funds

2005

2,545,416 $

-

-

773

-

-

2,546,189

2006

Agency

Fund

2005

2,529,067 $ 33,140,053 $ 32,289,596

50 50

-

-

-

-

2,529,067

205

18,911,342

55,120

50,893

52,157,663

-

21,310,346

436,240

50,893

54,087,125

$

-

15,852

-

15,852

2,530,337 $

-

7,392

-

7,392

2,521,675

6,426

36,354,192

15,797,045

52,157,663

9,021

32,824,607

21,253,497

54,087,125

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

Page 42

EXHIBIT 10

RAMSEY COUNTY, MINNESOTA

STATEMENT OF CHANGES IN FIDUCIARY NET ASSETS

FIDUCIARY FUNDS

FOR THE YEAR ENDED DECEMBER 31, 2006

WITH COMPARATIVE AMOUNTS FOR THE YEAR ENDED DECEMBER 31, 2005

ADDITIONS

Receipts from Clients

Investment Earnings

Total Additions

DEDUCTIONS

Payments to Clients or on Behalf of Clients

Change in Net Assets

Net assets - Beginning

Net assets - Ending

$

Private

Purpose

Trust Fund s

2006 2005

12,804,044

11,304

12,815,348

$ 12,792,773

4,959

12,797,732

$

12,806,686

8,662

12,504,297

293,435

2,521,675

2,530,337 $

2,228,240

2,521,675

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

Page 43

Ramsey County, Minnesota

Notes to the Basic Financial Statements

December 31, 2006

INDEX TO NOTES Page

I. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

45

Reporting Entity

Government-wide and Fund Financial Statements

Measurement Focus, Basis of Accounting, and Financial Statement Presentation

Assets, Liabilities, and Net Assets or Equity

Cash and Cash Equivalents

Deposits and Investments

Receivables and Payables

Inventories and Prepaid Items

Capital Assets

Compensated Absences

Long-term Obligations

Restricted Assets/Fund Equity

Estimated in Financial Statements

Prior Year Comparative Data

45

45

46

48

48

48

48

48

49

49

49

50

50

50

50

II.

RECONCILIATION OF GOVERNMENT-WIDE AND FUND FINANCIAL STATEMENTS

Explanation of Certain Differences Between the Governmental Fund Balance Sheet and the Government-Wide Statement of Net Assets

Explanation of Certain Differences Between the Governmental Fund Statement of

Revenues, Expenditures, and Changes in Fund Balance and the Government-Wide

Statement of Activities

50

COMPLIANCE, AND ACCOUNTABILITY

Deficit Fund Equity

Restatement of Fund Equity

Budgetary Information

51

52

52

52

52

IV.

DETAILED NOTES ON ALL FUNDS

Deposits and Investments

Receivables

Capital Assets

Interfund Receivables, Payables, and Transfers

HRA Conduit Debt Obligations

Leases Payable

Loans Payable

Sick Leave, Vacation, and Compensatory Time

Long-term Obligations

Rental and Lease Income

Unreserved – Fund Balance

Investment Earnings

INFORMATION

Risk Management

Subsequent Event

Contingent Liabilities

Joint Ventures

Jointly Governed Organizations

Defined Benefit Pension Plans – Statewide

Post Employment Benefits

53

53

57

59

60

61

62

62

63

63

68

68

69

69

69

70

70

71

72

73

75

Page 44

RAMSEY COUNTY, MINNESOTA

Notes to the Financial Statements

December 31, 2006

I. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

Ramsey County, Minnesota, was created by the Legislative Assembly of the Territory of Minnesota in

1849. The County operated under a County Board-Executive Director form of government until

November 6, 1992. On November 6, 1992, Ramsey County became the first County in the State to be governed by a home-rule charter. The Charter defines the powers and structure of the County.

The seven members of the Board of County Commissioners are elected by district for four years.

The County Manager is appointed by the Board on an indefinite basis.

The accounting practices of Ramsey County, Minnesota, conform to generally accepted accounting principles applicable to governmental units. This financial report has been prepared in conformity with Governmental Accounting Standard Board Statement No. 33, Accounting and Financial

Reporting for Nonexchange Transactions,

as amended, Statement No. 34, Basic Financial

Statements and Management’s Discussion and Analysis – for State and Local Governments,

as amended, and Statement No. 38, Certain Financial Statement Note Disclosures. The following is a summary of significant accounting principles.

As required by generally accepted accounting principles, these financial statements present Ramsey

County and its component units. The component units discussed below are included in the County’s reporting entity because of the significance of their operations or financial relationships with the

County.

Blended Component Units:

The Ramsey County Regional Railroad Authority was created by the Ramsey County Board pursuant to State statute. The seven member Regional Railroad Authority Board is appointed by the Ramsey

County Board of Commissioners. Currently, the Regional Railroad Authority consists of the seven

Ramsey County Commissioners. The Authority has the power to levy taxes, issue bonds and enter into contracts and agreements. The Authority is solely liable for its obligations. Separate financial statements can be obtained from Ramsey County Budgeting & Accounting Office.

The Ramsey County Housing & Redevelopment Authority was created in 1993 by the Ramsey

County Board pursuant to State Statute. The five member Housing & Redevelopment Authority is appointed by the Ramsey County Board of Commissioners. Currently, the Housing &

Redevelopment Authority consists of five members from the Ramsey County Board. The Authority’s financial activities are presented in the Housing & Redevelopment Authority Special Revenue Fund.

Separate financial statements are not available.

Joint Ventures:

A joint powers agreement between Ramsey and Washington Counties created the

Ramsey/Washington County Resource Recovery Project Board as a joint venture to administer the

Resource Recovery Facility. The Project Board is composed of four representatives from

Washington County appointed by the Washington County Board and five Ramsey County

Commissioners appointed by the Ramsey County Board. All administrative decisions are made by the Project Board except for: budget approval, levying taxes or assessing service charges and establishing the tipping fee to be charged at the facility which require the approval of the County

Boards. Details of Ramsey County’s share of the joint venture can be found in Note V. Separate financial statements can be obtained from Ramsey County Budgeting & Accounting Office.

B. Government-wide and Fund Financial Statements

The government-wide financial statements (i.e., the statement of net assets and the statement of activities) report information on all of the nonfiduciary activities of the primary government. For the most part, the effect of the interfund activity has been removed from these statements. Governmental

Page 45

RAMSEY COUNTY, MINNESOTA

Notes to the Financial Statements

December 31, 2006 activities, which normally are supported by taxes and intergovernmental revenues, are reported separately from business-type activities, which rely to a significant extent on fees and charges for support.

The statement of activities demonstrates the degree to which the direct expenses of a given function or segment are offset by program revenues. Direct expenses are those that are clearly identifiable with a specific function or segment. Certain indirect costs have been included as part of the program expenses reported for the various functional activities. Program revenues include: (1) charges to customers or applicants who purchase, use, or directly benefit from goods, services, or privileges provided by a given function or segment; and (2) grants and contributions that are restricted to meeting the operational or capital requirements of a particular function or segment. Taxes and other items not properly included among program revenues are reported instead as general revenues.

Separate financial statements are provided for governmental funds, proprietary funds, and fiduciary funds, even though the latter are excluded from the government-wide financial statements. Major individual governmental funds and major individual enterprise funds are reported as separate columns in the fund financial statements.

C. Measurement Focus, Basis of Accounting, and Financial Statement Presentation

The government-wide, proprietary fund, and fiduciary fund financial statements are reported using the

economic resources measurement focus

and the accrual basis of accounting. Revenues are recorded when earned, and expenses are recorded when a liability is incurred, regardless of the timing of related cash flows. Property taxes are recognized as revenues in the year for which they are levied. Shared revenues are generally recognized in the period the appropriation goes into

effect.

Grants and similar items are recognized as revenue as soon as all eligibility requirements imposed by the provider have been met.

Governmental fund financial statements are reported using the current financial resources

measurement focus

and the modified accrual basis of accounting. Revenues are recognized as soon as they are both measurable and available. Ramsey County considers all revenues to be available if they are collected within 60 days after the end of the current period. Property and other taxes,

shared revenues,

licenses, and interest are all considered to be susceptible to accrual.

Expenditures are recorded when the related fund liability is incurred, except for principal and interest on general long-term debt, compensated absences, and claims and judgments, which are recognized as expenditures to the extent that they have matured. Proceeds of general long-term debt and acquisitions under capital leases are reported as other financing sources.

Property taxes, licenses, and interest associated with the current fiscal period are all considered to be susceptible to accrual and so have been recognized as revenues of the current fiscal period. All other revenue items are considered to be measurable and available only when cash is received by the government.

The County reports the following major governmental funds:

The general fund is the government’s primary operating fund. It accounts for all financial resources of the general government, except those accounted for in another fund.

The debt service fund accounts for the resources accumulated and payments made for principal and interest on long-term general obligation debt of governmental funds.

The capital projects fund accounts for financial resources to be used for the acquisition or construction of major capital facilities and infrastructure (other than those financed by proprietary funds).

Page 46

RAMSEY COUNTY, MINNESOTA

Notes to the Financial Statements

December 31, 2006

The County reports the following major proprietary funds:

The Lake Owasso Residence fund provides residential treatment services to 64 people who are developmentally delayed or have related conditions ages 16 through adult.

Ponds at Battle Creek

is a golf course on 80 acres of land owned by Ramsey County Community

Corrections Department. The course will not only expand golf services to County residents, but also provide transferable work opportunities for workhouse inmates under the Productive Day

Program.

Additionally, the government reports the following fund types:

Internal service funds

are used to account for goods or services provided by one department or agency to other departments or agencies of the County, or other governments, on a costreimbursement basis.

• Data Processing – to provide electronic data processing services to County departments and other governmental units.

• General County Buildings – to account for rents received from occupants of several County

Buildings and to pay all expenses incurred in operating and maintaining the building.

• Telecommunications – to account for all expenses incurred in operating the telephone system in the Ramsey County Buildings.

• Firearms Range – to provide a Firearms Range to law enforcement personnel of the County and other local governments.

The private-purpose trust funds are used to account for client resources held in trust to pay expenses on their behalf and missing heir funds until they are located.

The County has an agency fund, which is custodial in nature and does not present results of operations or have a measurement focus. The agency fund is accounted for using the accrual basis of accounting. This fund is used to account for assets that the County holds for others in an agency capacity, including pass-through funds that are equivalent to pure cash conduits; inmate and other governmental agency funds held in the custody of the County; and revenues collected on behalf of other governmental units related to property taxes.

Private-sector standards of accounting and financial reporting issued prior to December 1, 1989, generally are followed in both the government-wide and proprietary fund financial statements to the extent that those standards do not conflict with or contradict guidance of the Governmental

Accounting Standards Board. Governments also have the option of following subsequent privatesector guidance for their business-type activities and enterprise funds, subject to this same limitation.

The County has elected not to follow subsequent private-sector guidance.

Amounts reported as program revenues include: (1) charges to customers or applicants for goods, services, or privileges provided; (2) operating grants and contributions, as well as any related interest earnings; and (3) capital grants and contributions, as well as any related interest earnings. Internally dedicated resources are reported as general revenues rather than as program revenues. Likewise, general revenues include all taxes.

Proprietary funds distinguish operating revenues and expenses from nonoperating items. Operating revenues and expenses generally result from providing services and producing and delivering goods in connection with a proprietary fund’s principal ongoing operations. The principal operating revenues of the Lake Owasso Residence, Ponds at Battle Creek, Ramsey Nursing Home, and Law

Enforcement Services enterprise funds, and of the government’s internal service funds are charges to customers for sales and services. Operating expenses for enterprise funds and internal service funds include the cost of sales and services, administrative expenses, and depreciation on capital assets.

Page 47

RAMSEY COUNTY, MINNESOTA

Notes to the Financial Statements

December 31, 2006

All revenues and expenses not meeting this definition are reported as nonoperating revenues and expenses.

When both restricted and unrestricted resources are available for use, it is the County’s policy to use restricted resources first, then unrestricted resources as they are needed.

D. Assets, Liabilities, and Net Assets or Equity

1. Cash and Cash Equivalents

Ramsey County has defined cash and cash equivalents to include cash on hand, demand deposits, and short-term investments with original maturities of three months or less from the date of acquisition. Additionally, each fund’s equity in the County’s investment pool is treated as a cash equivalent because the funds can deposit or effectively withdraw cash at any time without prior notice or penalty.

2. Deposits and Investments

The cash balances of substantially all funds are pooled and invested for the purpose of increasing earnings through investment activities. Pooled and fund investments are reported at their fair value at December 31, 2006, based on market prices. Pursuant to Minn. Stat. § 385.07, investment earnings on cash and pooled investments of governmental and fiduciary funds are credited to the General Fund. Other funds received investment earnings based on other state statutes, grant agreements, contracts, and bond covenants. Pooled investment earnings for 2006 were $12,487,790.

and

Activity between funds that are representative of lending/borrowing arrangements outstanding at the end of the fiscal year are referred to as either “due to/from other funds” (i.e., the current portion of interfund loans) or “advances to/from other funds” (i.e., the non-current portion of interfund loans). All other outstanding balances between funds are reported as “due to/from other funds.” Any residual balances outstanding between the governmental activities and businesstype activities are reported in the government-wide financial statements as “internal balances.”

Advances between funds, as reported in the fund financial statements, are offset by a fund balance reserve account in applicable governmental funds to indicate that they are not available for appropriation and are not expendable available financial resources.

All trade and property tax receivables are shown net of an allowance for uncollectibles. Trade accounts in excess of 120 days comprise the trade accounts receivable allowance for uncollectibles. The property tax receivable allowance is equal to 1% of the current year’s property tax levy.

Property taxes are levied as of January 1 on property values assessed as of the same date. The tax levy is divided into two billings: the first billing (due from property owners on May 15 second billing (due on October 15 th

or November 15 owners at December 31, are considered delinquent. th th

) and the

). Taxes, which remain unpaid by property

4. Inventories and Prepaid Items

Inventory is valued at cost using the first-in/first-out (FIFO) method. Inventory consists of expendable supplies held for consumption. The cost is recorded as an expenditure at the time of purchase on the fund financial statements and converted to the consumption method for the government-wide statements.

Certain payments to vendors reflect cost applicable to future accounting periods and are recorded as prepaid items in both government-wide and fund financial statements.

Page 48

RAMSEY COUNTY, MINNESOTA

Notes to the Financial Statements

December 31, 2006

Assets

Capital assets, which include property, plant, equipment, and infrastructure assets (e.g. roads, bridges, sidewalks, and similar items), are reported in the applicable governmental or businesstype activities columns in the government-wide financial statements. Capital assets are defined by the County as assets with an initial, individual cost of more than $5,000 and an estimated useful life in excess of two years, as well as certain exceptions that are considered to be high risk to theft. Such assets are recorded at historical cost or estimated cost if purchased or constructed. Donated capital assets are recorded at estimated fair value at the date of donation.

General infrastructure assets acquired prior to January 1, 2002 consist of the road network assets that were acquired or that received substantial improvements subsequent to July 1, 1980 and are reported at actual historical cost. The costs of normal maintenance and repairs that do not add to the value of the asset or materially extend asset lives are not capitalized.

Major outlays for capital assets and improvements are capitalized as projects are constructed.

Interest incurred during the construction phase of capital assets is included as part of the capitalized value of the assets constructed.

Property, plant, and equipment of the primary government is depreciated using the straight line method over the following estimated useful lives:

Assets Years

Buildings 10-50

Building Improvements 5-20

Infrastructure 20-75

Improvements Other Than Buildings

Machinery and Equipment

10-20

2-20

Absences

It is the County’s policy to permit employees to accumulate earned but unused vacation and sick pay benefits. Under the County’s personnel policies and union contracts, County employees are granted vacation and sick leave in varying amounts based on length of services. Certain County employees are also granted compensatory time. Unused accumulated vacation leave, compensatory time, and vested sick leave are paid to employees upon termination. Unvested sick leave is available to employees in the event of illness-related absences and is not paid to employees upon termination. Each permanent employee earns up to 25 days vacation leave and

15 days of sick leave per year.

Obligations

In the government-wide financial statements and proprietary fund types in the fund financial statements, long-term debt and other long-term obligations are reported as liabilities in the applicable governmental activities, business-type activities, or proprietary fund type statement of net assets. Bond premiums and discounts, as well as issuance costs, are deferred and amortized over the life of the bonds using the effective interest method. Bonds payable are reported net of the applicable bond premium or discount. Bond issuance costs are reported as deferred charges and amortized over the term of the related debt.

In the fund financial statements, governmental fund types recognize bond premiums and discounts, as well as bond issuance costs, during the current period. The face amount of debt is reported as other financing sources. Premiums received on debt issuances are reported as other financing sources, while discounts on debt issuances are reported as other financing uses.

Issuance costs, whether or not withheld from the actual debt proceeds received, are reported as debt service expenditures.

Page 49

RAMSEY COUNTY, MINNESOTA

Notes to the Financial Statements

December 31, 2006

Assets/Fund

Certain funds of the County are classified as restricted assets on the statement of net assets because the restriction is either imposed by law through constitutional provisions or enabling legislation or imposed externally by creditors, grantors, contributors, or laws or regulations of other governments. Therefore, their use is limited by applicable laws and regulations. These legal restrictions include:

Debt Service

Capital Projects

Solid Waste

Aggregate Material

Criminal Forfeiture

Underground Storage Tanks

County Recorder’s Equipment

Election Equipment

$55,035,877

7,186,824

20,565,333

118,970

401,732

100,000

1,043,663

274,135

$84,726,534

In the fund financial statements, governmental funds report reservations of fund balance for amounts that are not available for appropriation or are legally restricted by outside parties for use for a specific purpose. Designations of fund balance represent tentative management plans that are subject to change.

9. Estimates in Financial Statements

The preparation of financial statements in conformity with generally accepted accounting principles requires management to make estimates and assumptions that affect the amounts reported in the financial statements and accompanying notes. Actual results could differ from those estimates.

E. Prior Year Comparative Data

The basic financial statements include partial prior year comparative information. Such information does not include all of the information required to constitute a presentation in conformity with accounting principles generally accepted in the United States of America. Accordingly, such information should be read in conjunction with the County’s financial statements for the year ended

December 31, 2005, from which such partial information was derived.

II. RECONCILIATION OF GOVERNMENT-WIDE AND FUND FINANCIAL STATEMENTS

A. Explanation of Certain Differences Between the Governmental Fund Balance Sheet and the

Government-Wide Statement of Net Assets

The governmental fund balance sheet includes a reconciliation between fund balance – total

governmental funds

and net assets – governmental activities as reported in the government-wide statement of net assets. One element of that reconciliation explains that “long-term liabilities, including bonds payable, are not due and payable in the current period and therefore are not reported in the funds.” The details of this $247,733,977 difference are as follows:

Page 50

RAMSEY COUNTY, MINNESOTA

Notes to the Financial Statements

December 31, 2006

Bonds and Notes Payable

Loans Payable

Capital Lease

Less: Deferred Charge for Issuance Costs

(Amortized Over the Life of the Debt)

Accrued Interest Payable

Unamortized Premium on Bonds

Estimated Payable for Outstanding Claims

Compensated Absences Payable, Vacation, & Comp Time Payable

Due to Other Governments

Net Adjustment to Reduce Fund Balance – Total Governmental

Activities to Arrive at Net Assets – Governmental Activities

$203,857,000

68,222

107,512

(1,272,995)

3,996,125

4,303,694

5,714,500

30,846,649

113,270

$247,733,977

B. Explanation of Certain Differences Between the Governmental Fund Statement of

Revenues, Expenditures, and Changes in Fund Balances and the Government-Wide

Statement of Activities

The governmental fund statement of revenues, expenditures, and changes in fund balances includes a reconciliation between net changes in fund balances – total governmental funds and changes in net

assets of governmental activities

as reported in the government-wide statement of activities. One element of that reconciliation explains, “Governmental funds report capital outlays as expenditures.

However, in the statement of activities, the cost of those assets is allocated over their estimated useful lives and reported as depreciation expense.” The details of this $29,860,121 difference are as follows:

Capital Outlay

Depreciation Expense

Net Adjustment to Increase Changes in Fund Balances – Total

Governmental Funds to Arrive at Changes in Net Assets of

Governmental Activities

$ 49,793,118

(19,932,997)

$ 29,860,121

The second element of that reconciliation states that “The net effect of various miscellaneous transactions involving capital assets (i.e. sales, trade-ins, and donations) is to decrease net assets.”

In the statement of activities, only the loss on the sale of capital assets is reported. However, in the governmental funds, the proceeds from the sale increase financial resources. Thus, the change in net assets differs from the change in fund balance by the net book value of the capital assets sold.

The details of this $2,787,026 difference is as follows:

Loss on Disposal/Sale of Capital Assets $(2,787,026)

Another element of that reconciliation states that “the issuance of long-term debt (e.g. bonds) provides current financial resources to governmental funds, while the repayment of the principal of long-term debt consumes the current financial resources of governmental funds. Neither transaction, however, has any effect on net assets. Also, governmental funds report the effect of issuance costs, premiums, discounts, and similar items when debt is first issued, whereas these amounts are deferred and amortized in the statement of activities.” The details of this $4,977,266 difference are as follows:

Page 51

RAMSEY COUNTY, MINNESOTA

Notes to the Financial Statements

December 31, 2006

Debt issued or Incurred:

Issuance of General Obligation Bonds

Unamortized Premium on Sale of Bonds

Proceeds from Loans from Xcel Energy

Principal Repayments:

General Obligation Debt

Redemption of Refunded Bond Issuances

Capital Loan from State of Minnesota for Pedestrian Tunnel

Payments on Capital Lease Obligation for Food Service Equipment – LEC

Payments on Xcel Energy Loans

Net adjustment to Increase Changes in Fund Balances – Total Governmental

Funds to Arrive at Changes in Net Assets of Governmental Activities

$(6,750,000)

(31,046)

(76,940)

11,610,000

-

165,000

48,600

11,652

$ 4,977,266

Finally, the reconciliation states, “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.” The details of this $137,626 difference are as follows:

Compensated Absences

Claims and Judgments

Accrued Interest

Arbitrage Expense

Bond Issuance Costs

Amortization of Bond Issuance Costs

Amortization of Bond Premium

Offset Operating Transfer from Internal Service Funds

Inventory (Change From Consumption to Purchase Method)

Net Adjustment to Decrease Net Changes in Fund Balances – Total

Governmental Funds to Arrive at Changes in Net Assets of

Governmental Activities

$(310,901)

152,000

19,491

(113,270)

70,093

(172,134)

205,837

(127)

286,637

$ 137,626

III. STEWARDSHIP, COMPLIANCE, AND ACCOUNTABILITY

The Ponds at Battle Creek Enterprise Fund showed a net loss of $112,769 for the year, resulting in a deficit of net assets of $851,493.

The Workforce Solutions Special Revenue Fund reported a net change in Fund Balance of $6,388 for

2006, decreasing the negative Fund Balance to $4,142. It is expected future revenues will eliminate the negative Fund Balance.

B. Restatement of Fund Equity

In the 2005 financial statements, intergovernmental revenue was overstated in the Capital Projects

Fund and understated in the Parks and Recreation Special Revenue Fund by $360,000 because that amount should have been recorded as an advance to and from other funds. Beginning fund balance was restated in both funds by $360,000.

C. Budgetary Information

The County Board adopts an annual budget for certain Special Revenue Funds (County Library, Solid

Waste/Recycling Service Fee, Saint Paul Public Health JPA, Regional Railroad Authority, and

Forfeited Tax Sale), the County Debt Service Fund, and Regional Railroad Authority Debt Service

Page 52

RAMSEY COUNTY, MINNESOTA

Notes to the Financial Statements

December 31, 2006

Fund. These budgets are prepared on the modified accrual basis of accounting. Annual budgets are not adopted for the Capital Project Fund, Regional Railroad Authority Capital Project Fund, and certain Special Revenue Funds. Some of these funds have budgets, which are approved at the time the project or budget is initially authorized and overlap fiscal years. Other Special Revenue Funds are not budgeted. The following Special Revenue Funds either have budgets that overlap the

County’s fiscal year or are not budgeted: Housing & Redevelopment Authority, Workforce Solutions,

State Funding for Courts, State Public Defender, Gifts and Donations, Sheriff, Corrections, Property

Records, County Attorney, Health Promotion/Health Improvement, Parks & Recreation, Nursing

Home Patients Activity, and Law Library. The Capital Projects Fund, Regional Railroad Authority

Capital Projects Fund, and those Special Revenue Funds, whose budgets overlap fiscal years, are not consistent with the County’s method of financial reporting; therefore, comparisons between the results of operations and budgets in these funds are not relevant and are not presented.

Based on a process established by the County Manager and staff, all departments of the government submit requests for appropriations to the County Manager every two years. After review, analysis and discussions with the departments, the County Manager’s proposed budget is presented to the

County Board for review. The Board holds public hearings and a final budget must be prepared and adopted no later than December 31.

The appropriated budget is prepared by fund, function, and department. Budgets may be amended during the year with the approval of the County Manager or County Board as required by the County’s

Administrative Code. The County Manager is authorized to transfer budgeted amounts within departments or appropriate certain revenues received in excess of the original budget estimate.

Transfers of appropriations between departments and other transfers of appropriations require

County Board approval. Supplemental appropriations are reviewed by the County Manager’s office and submitted to the County Board for their approval. If approved, the adjustments are implemented by the Budgeting and Accounting Office by budget revision. Supplemental appropriations required during the year were immaterial. Expenditures may not legally exceed budgeted appropriations at the department level. All appropriations, except Capital Project Fund and Regional Railroad Authority

Capital Project Fund, which are not expended, encumbered, or reserved, as described above, lapse at year end.

Encumbrance accounting is employed in governmental funds. Encumbrances (e.g., purchase orders, contracts, capital reserves, and other commitments for the expenditure of monies) outstanding at year end are reported as reservations of fund balances and do not constitute expenditures or liabilities because the commitments will be reappropriated and honored during the subsequent year.

IV. DETAILED NOTES ON ALL FUNDS

A. Deposits and Investments

Reconciliation of County’s total cash and investments to the basic financial statements follows:

Page 53

RAMSEY COUNTY, MINNESOTA

Notes to the Financial Statements

December 31, 2006

Government-wide

Governmental Activities

Cash and Cash equivalents

Cash with trustee

Restricted cash

Petty cash

Imprest cash

Business-type activities

Cash and Cash equivalents

Cash with trustee

Petty cash

Cooperative investment

Fiduciary funds

Cash and Cash equivalents

Petty cash

Private Purpose Trust funds

Cash and Cash equivalents

Cash and Investments

Deposits

Investments

Investments with trustee

Cooperative investment

Petty Cash

Total Cash and Investments

$297,906,467

18,227,581

3,000

26,015

60,000

3,276,415

3,136,568

20,500

30,913

33,140,053

50

2,545,416

$358,372,978

$ 8,800,205

328,131,146

21,364,149

30,913

46,565

$358,372,978

1. Deposits

Minn. Stat. §§ 118A.02 and 118A.04 authorize the County to designate a depository for public funds and to invest in certificates of deposit. Minn. Stat. § 118A.03 requires that all district deposits be protected by insurance, surety bond, or collateral. The market value of collateral pledged shall be at least ten percent more than the amount on deposit plus accrued interest at the close of the financial institution’s banking day, not covered by insurance or bonds.

Authorized collateral includes treasury bills, notes and bonds; issues of U.S. government agencies; general obligations rated “A” or better, revenue obligations rated “AA” or better; irrevocable standard letters of credit issued by the Federal Home Loan Bank; and certificates of deposit.

Minnesota Statutes require that securities pledged as collateral be held in safekeeping in a restricted account at the Federal Reserve Bank or in an account at a trust department of a commercial bank or other financial institution that is not owned or controlled by the financial institution furnishing the collateral.

Custodial Credit Risk-Deposits.

Custodial credit risk is the risk that, in the event of a financial institution failure, the County’s deposits may not be returned to it. The County does not have a deposit policy for custodial credit risk. As of December 31, 2006, the County’s deposits were not exposed to custodial credit risk.

Page 54

RAMSEY COUNTY, MINNESOTA

Notes to the Financial Statements

December 31, 2006

2. Investments

Minn. Stat. §§ 118A.04 and 118A.05 generally authorize the following types of investments as available to the County:

(a) securities which are direct obligations or are guaranteed or insured issued of the United States, its agencies, or instrumentalities, or organizations created by an act of Congress, except mortgage-backed securities defined as “high risk” by Minn. Stat. § 118A.04, subd. 6;

(b) mutual funds through shares of registered investment companies provided the mutual fund receives certain ratings depending on its investments;

(c) general obligations of the State of Minnesota and its municipalities, and in certain state agency and local obligations of Minnesota and other states provided such obligations have certain specified bond ratings by a national bond rating service;

(d) bankers’ acceptances of United States banks;

(e) commercial paper issued by United States corporations or their Canadian subsidiaries that is rated in the highest quality category by two nationally recognized rating agencies and matures in 270 days or less; and

(f) with certain restrictions, in repurchase agreements, securities lending agreements, joint powers investment trusts, and guaranteed investment contracts.

Interest Rate Risk.

Interest rate risk is the risk that changes in the market interest rates will adversely affect the fair value of an investment. The County minimizes its exposure to interest rate risk by investing in both shorter and longer-term investments and by timing cash flows from maturities so that a portion of the portfolio is maturing or coming close to maturity evenly over time as necessary to provide the cash flow and liquidity needed for operations.

Ramsey County has adopted a simulation model of reporting of its investments and their sensitivity to fluctuation in interest rates to comply with Government Accounting Standards Board Statement

No. 40, “Deposit and Investment Risk Disclosures”. As presented, assumptions are made of interest rate changes of 50, 100, 150, and 200 basis points; it also assumes that interest rate changes occurred on December 31, 2006. The investment portfolio has an average book yield of

4.57%, modified duration of 2.81 years and an effective duration of 1.71 years.

Ramsey County:

U.S. Agency Securities:

Federal Home Loan

Federal Home Loan Mtg. Corp.

Federal National Mtg. Assn.

Federal Farm Credit

Overseas Private Investment Corp

Commercial Paper (each <5%)

Griffin Bldg Revenue Bonds: Project

Money Market Savings Acct

Griffin Bldg Revenue Bonds: DS.

Money Market Savings Acct

Griffin Bldg Revenue Bonds: RF

Money Market Savings Acct

Federal Home Loan

US Treasury SLUG’s

Total Investments

+50 Basis Pts +100 Basis Pts +150 Basis Pts +200 Basis Pts

$123,267,169 $123,172,798 $123,078,426 $122,984,055

29,653,785 29,426,691 29,199,596 28,971,621

20,841,641 20,749,533 20,657,424 20,565,316

11,755,229

155,065

11,697,939

155,065

11,640,648

155,065

11,583,357

155,065

141,987,390 141,987,390 141,987,390 141,987,390

370,836 370,836 370,836 370,836

786,717 786,717 786,717 786,717

2,162

1,083,035

2,162

1,083,035

2,162

1,083,035

2,162

1,083,035

19,121,399 19,121,399 19,121,399 19,121,399

$349,024,428 $348,553,565 $348,082,698 $347,610,007

Page 55

RAMSEY COUNTY, MINNESOTA

Notes to the Financial Statements

December 31, 2006

The Ramsey County Board of Commissioners officially approved Ramsey County’s investment policy in September of 1998. In November of 1999, a few changes were made to the policy, which were also approved by the Ramsey County Board. The policy is a bit more restricted than what is prescribed in Chapter 118A of Minnesota Statutes governing the investment of public funds. Ramsey County’s policy restricts Agency Debentures to be up to 60% of the portfolio,

Structured Agency Notes up to 30% with no inverses, Agency Mortgage Pass-Thru’s up to 30%,

Agency CMO’s up to 30%, Municipal Bonds up to 30%, and Bankers Acceptances up to 50%.

Commercial Paper, Certificates of Deposits, Repurchase Agreements, and GIC’s are consistent with language of Chapter 118A.

Chapter 118A of the Minnesota Statutes allows Reverse Repurchase agreements as an investment to create leverage. The Ramsey County policy currently does not allow the use of

Reverse Repurchase Agreements, Options, or Future Contracts.

Credit Risk.

Generally, credit risk is the risk that an issuer of an investment will not fulfill its obligation to the holder of the investment. This is measured by the assignment of a rating by a nationally recognized statistical rating organization. It is the County’s policy to invest only in securities that meet the ratings requirements set by state statute.

The County’s exposure to credit risk as of December 31, 2006, is as follows:

Ramsey County:

U.S. Agency Securities:

Federal Home Loan

Federal Home Loan Mtg. Corp.

Federal National Mtg. Assn.

Federal Farm Credit

Commercial Paper (each <5%)

Ramsey County’s Portfolio

Credit

Risk

Custody Fair

Value

% of Total

Portfolio

AAA / Aaa Custody (a)

AAA / Aaa Custody

AAA / Aaa Custody

AAA / Aaa Custody (a)

A1+P1 Custody (a)

124,700,000 123,362,141

Custody

30,000,000 29,880,280

21,000,000 20,933,750

12,000,000 11,812,520

35.35%

8.51%

5.95%

143,500,000 141,987,390 40.68%

331,365,569 328,131,146

3.40%

(a) 165,569 155,065 0.05%

Escrow Accounts:

Griffin Bldg Revenue Bonds: Project Fund

Money Market Savings Account

Griffin Bldg Revenue Bonds: DS. Fund

Money Market Savings Account

Griffin Building Revenue Bonds:

Money Market Savings Account n.a.

Federal Home Loan

US Treasury SLUG’s

Escrow Account Totals

Total Investments

AAA / Aaa Escrow (b) n.a. Escrow (b)

(a) Securities held in custody are in Ramsey County’s name.

(b) Securities held by the escrow agent.

370,836 370,836 0.11%

786,717 786,717 0.22%

1,080,000 1,083,035 0.31%

19,121,399 19,121,399 5.42%

21,361,114 21,364,149 _______

352,726,933 349,495,295 100.00%

Concentration of Credit Risk.

The concentration of credit risk is the risk of loss that may be caused by the County’s investment in a single issuer. It is the County’s policy that U.S. Treasury Securities,

U.S. Agency Securities, and obligations backed by U.S. Treasury and/or U.S. Agency Securities, may be held without limit.

Custodial Credit Risk.

The custodial credit risk for investments is the risk that, in the event of the failure of the counterparty to a transaction, a government will not be able to recover the value of investment or collateral securities that are in the possession of an outside party. Ramsey County’s policy states all securities purchased by the county will be held by a third party safekeeping agency appointed as custodian by the County, consistent with Section 118A.06 of the Minnesota Statutes.

Page 56

RAMSEY COUNTY, MINNESOTA

Notes to the Financial Statements

December 31, 2006

The custodian shall issue a safekeeping receipt to the County for each transaction detailing all pertinent aspects of the specific security and the name and account which the security is held. All security transactions entered into by the County, with the exception of money market mutual funds, fixed income mutual fund, and repurchase agreements, shall be conducted on a delivery versus payment basis. At December 31, 2006, all of the investments held in escrow accounts listed above totaled $21,364,149 and were subject to custodial credit risk.

B. Receivables

Governmental funds report deferred revenue in connection with receivables for revenues that are not considered to be available to liquidate liabilities of the current period. Governmental funds also defer revenue recognition in connection with resources that have been received, but not yet earned. At the end of the current fiscal year, the various components of deferred revenue and unearned revenue reported in the governmental funds were as follows:

Unavailable Unearned

Delinquent Property Taxes Receivable $ 4,565,775 $ -

Receivables that do not provide Current

Financial Resources

Loans Receivable

Forfeited Tax Sale Contracts Receivable

Grant Drawdowns Prior to Meeting Eligibility Requirements

Earnest Money

7,255,489 -

12,717,225

431,171

- 1,500,000

-

-

3,174,916

$24,969,660 $4,674,916

Direct financing leases:

PEDESTRIAN CONNECTION

Using loan funds obtained through an agreement with the Minnesota Public Facilities Authority, the

County built a pedestrian connection from the RiverCentre complex to the core downtown St. Paul area. Under an agreement with the City of St. Paul, the City is required to make lease payments to the County in an amount equal to 105% of the loan payments due from the County to the Minnesota

Public Facilities Authority.

The City is responsible for the operation and maintenance of the pedestrian connection. At the expiration of the term of the lease in the year 2030, the connection will become the sole property of the City. As a result, the pedestrian connection is not included in the County’s capital assets.

Terms of the lease are as follows:

Years Ended December 31 Lease

2007

2008 392,985

2009 396,702

2010 395,060

2011-2015 1,968,321

2016-2020 1,961,564

2021-2025 1,951,931

2026-2030 1,944,962

9,405,613

Less Interest (3,163,613)

Present Value of

Lease Receivable $6,242,000

Page 57

RAMSEY COUNTY, MINNESOTA

Notes to the Financial Statements

December 31, 2006

BENZ BUILDING

Issuing $13,845,000 of lease revenue bonds in 2003, the County renovated and remodeled the Benz

Building to be used for the Saint Paul Police Headquarters Facility and leased by the City of Saint

Paul. The term of the lease is for 20 years beginning January 1, 2004 to December 31, 2023. The

City of Saint Paul will pay base rent on a semi-annual basis equal to the debt service payment including principal and interest.

The City may buy out the lease and exercise a purchase option at any time during the lease as well as purchase the property for $1,500,000 at the end of the lease term. As a result, the building is not included in the County’s capital assets.

Terms of the lease are as follows:

Years Ended December 31 Lease

2007 $ 1,046,217

2008 1,048,368

2009 1,049,818

2010 1,055,568

2011-2015 5,246,907

2016-2020 5,373,463

2021-2023 3,218,100

18,038,441

Less Interest

Present Value of

Lease Receivable

(5,638,441)

$12,400,000

REGIONS HOSPITAL

The lease agreement granted Regions Hospital use of the property through December 2046 under the condition that it (i) provide care to the indigent of Ramsey County throughout the lease term; (ii) pay all taxes, utilities, maintenance, and insurance costs with respect to the property; (iii) use its best efforts to continue providing, and consult with the Ramsey County Board of Commissioners before discontinuing, its major or unique services, including but not limited to the trauma center, burn unit, graduate medical education, and research services; and (iv) not assign the lease to a for-profit corporation.

The property leased is classified as a capital lease and is not included in the County’s capital assets. The lease requires that a minimum dollar amount of indigent care be provided to Ramsey County residents.

In the event the value of charity care does not meet the lease requirement, the Hospital can fulfill the obligation by making capital improvements to the hospital property. The value of charity care is reduced by Ramsey County’s direct cash support, if any.

Page 58

RAMSEY COUNTY, MINNESOTA

Notes to the Financial Statements

December 31, 2006

Capital asset activity for the year ended December 31, 2006 was as follows:

Beginning

Balance

Ending

Increases Decreases Balance

Governmental activities:

Capital assets not being depreciated:

Land

Construction in progress

Total capital assets, not being depreciated

$ 76,783,297 $ 3,502,584 $ (45,668) $ 80,240,213

78,270,427 17,649,343 (1,981,037)

155,053,724 21,151,927 (2,026,705)

93,938,733

174,178,946

Capital assets, being depreciated:

Buildings 252,760,206

Building Improvements

Improvements other than buildings

10,296,227 691,480

(2,361,134) 34,722,646

Equipment 60,130,548 6,475,623

Infrastructure

Total capital assets being depreciated

339,378,052 18,208,955 -

697,904,882 29,075,681 (8,181,966)

10,987,707

357,587,007

718,798,597

Less accumulated depreciation for:

Buildings (50,997,183)

Building Improvements (5,275,430) (989,298)

Improvements other than buildings (19,797,684)

(6,264,728)

(1,720,099) 2,286,168 (19,231,615)

Equipment (48,629,722) (4,905,598) 4,045,542 (49,489,778)

Infrastructure (164,475,599)

Total accumulated depreciation

(8,172,412)

(289,175,618) (20,821,773)

- (172,648,011)

7,541,244 (302,456,147)

Total capital assets being depreciated, net

Governmental activities capital assets, net

408,729,264

563,782,988

8,253,908 (640,722)

29,405,835 (2,667,427)

416,342,450

590,521,396

Business-type activities:

Capital assets not being depreciated:

Land

Construction in progress

Total capital assets, not being

Depreciated

107,073 -

116,309

223,382

26,000

26,000

(116,309)

(116,309)

Capital assets, being depreciated:

Buildings

Building improvements

9,491,866 -

1,373,447 193,630

Improvements other than buildings 3,654,711 -

Equipment

Total capital assets being depreciated

2,437,578

16,957,602

209,904

403,534

(176,346)

-

(176,346)

-

-

107,073

26,000

133,073

9,491,866

1,567,077

3,654,711

2,471,136

17,184,790

Less accumulated depreciation for:

Buildings (3,598,714)

Building improvements

Improvements other than buildings

Equipment

Total accumulated depreciation

(694,211) (75,242)

(671,731) (128,079) -

(1,802,915)

(6,767,571)

(259,499)

(707,039)

133,974

-

133,974

(3,842,933)

(769,453)

(799,810)

(1,928,440)

(7,340,636)

Total capital assets being depreciated, net

Business-type activities capital assets, net

10,190,031 (303,505)

$ 10,413,413 $ (277,505)

(42,372) 9,844,154

$ (158,681) $ 9,977,227

Page 59

RAMSEY COUNTY, MINNESOTA

Notes to the Financial Statements

December 31, 2006

Depreciation expense was charged to functions / programs as follows:

Governmental activities:

General government

Highways and streets, including depreciation of infrastructure assets

Health

Services

Culture and recreation

Conservation of natural resources

Economic development and assistance

Capital assets held by the County’s internal service funds are charged to the various functions based on their usage of the assets

Total depreciation expense – governmental activities

Business-type activities:

Lake Residence

Ramsey Nursing Home

Ponds at Battle Creek

Law

Total depreciation expense – business-type activities

$ 3,672,856

3,465,120

9,538,084

263,383

534,138

2,346,331

21,206

91,879

888,776

$20,821,773

$214,606

233,837

131,631

126,965

$707,039

Construction Commitments

The government has active construction projects as of December 31, 2006. The projects include widening and construction of existing streets and bridges, and the construction of new county building facilities. At year-end the government’s commitments with contractors are as follows:

Project Spent-to-date Remaining

Road and bridge construction

County building facilities

$37,465,621

9,258,166

$ 6,516,316

5,818,445

$12,334,761

D. Interfund Receivables, Payables, and Transfers

The composition of interfund balances as of December 31, 2006, is as follows:

Due to/from other funds:

General Nonmajor Governmental Funds

Lake Owasso Residence

Ponds at Battle Creek

Capital Projects Fund

Nonmajor Enterprise Funds

Internal Service Funds

General

Ponds at Battle Creek

Nonmajor Governmental Funds

Debt Service

Internal Service Funds General

Nonmajor Governmental Funds

Lake Owasso Residence

Ponds at Battle Creek

Total

Nonmajor Enterprise Funds

Internal Service Funds

Amount

$ 310,240

2,118

1,127

1,494

46,201

75,641

1,386

506,169

914,825

54,796

7,227

4,833

8,563

40,717

$1,975,337

Page 60

RAMSEY COUNTY, MINNESOTA

Notes to the Financial Statements

December 31, 2006

These balances reflect the interfund goods and services provided and not paid at year-end but expected to be paid in the subsequent year.

Advances are usually loans that are outstanding more than one year.

Advances to / from other funds:

Receivable Fund Payable

General

Capital Projects

Total

Capital Projects Fund

Nonmajor Governmental Funds

Lake Owasso Residence

Nonmajor Enterprise Funds

Ponds at Battle Creek

Ponds at Battle Creek

Amount

$2,130,000

4,711,000

378,206

50,000

772,400

175,000

$8,216,606

These balances are primarily working capital loans made to other funds and not scheduled to be paid back in the subsequent year.

Interfund transfers:

In

Internal

General

Capital

Projects

Nonmajor

Governmental

Service

Funds Total

Transfer out:

General

Debt Service

Nonmajor

Governmental

Lake Owasso Residence

Ponds at Battle Creek

Nonmajor Enterprise

Total transfers out

$ -

-

$

1,777,050

128,378 -

199,170 -

357,906

-

-

50,000

12,485

$ 1,000

-

$ 127

424,984 -

-

-

-

$685,454 $1,839,535

$425,984

-

-

-

-

$ 1,127

1,777,050

553,362

199,170

50,000

370,391

$ 127 $2,951,100

Transfers are used to move revenues from the General Fund to finance various programs accounted for in other funds and move restricted funds to the Debt Service Fund. Also move revenues from

Refunded Bonds from Debt Service Fund to the Agency Fund.

E. HRA Conduit Debt Obligations

The HRA has issued Rental Housing Revenue Bonds to facilitate the development of housing facilities designed for occupancy by persons of low or moderate income which improves the economic and housing conditions of the County. The bonds are secured by the financed property and are payable solely from the revenues of the housing projects. The HRA has issued Revenue

Bonds to facilitate the development of enterprises engaged in providing health care services to residents of Ramsey County. The bonds are secured by the financial property and are payable solely from the revenues of the health care operation.

The bonds do not constitute a charge, lien, or encumbrance, legal or equitable, upon any property or funds of the HRA, nor is the HRA subject to any liability thereon. Accordingly, the bonds are not reported as liabilities in the accompanying financial statements.

Conduit bonds have an outstanding principal balance of $105.7 million at December 31, 2006. There were seven conduit bond issuances at December 31, 2006.

Page 61

RAMSEY COUNTY, MINNESOTA

Notes to the Financial Statements

December 31, 2006

Operating Leases

The county leases real estate and equipment under leases expiring at various dates through 2015.

Total costs for such leases were $1,850,621 for year ended December 31, 2006. The future minimum lease payments for these leases are as follows:

Year Ending Dec. 31

2007 $1,960,593

2008

2009

Fund

1,414,056

1,151,835

2010

2011

2012-2015

732,499

309,297

359,645

Total $5,927,925

Capital Leases

Ramsey County has entered into a lease agreement as lessee for financing the acquisition of food service equipment at the new Adult Detention Center. This lease agreement qualifies as a capital lease for accounting purposes and, therefore, has been recorded at the present value of the future minimum lease payments as of the inception date.

The assets acquired through capital leases are as follows:

Asset:

$296,955

The future minimum lease obligations and the net present value of these minimum lease payments as of December 31, 2006, were as follows:

Year Ending December 31

2007

2008

Total minimum lease payments

Less: amount representing interest

Governmental Activities

$ 59,391

59,391

118,782

(11,270)

Present value of minimum lease payments $107,512

The County has taken advantage of the Xcel Energy Local Government Energy Conservation

Program to complete energy retrofits of various County buildings. Xcel’s program provides no interest loans for building energy retrofits, based on energy savings generated; a one-time bounty for reduced kilowatt consumption and partial funding for engineering audits and design services.

Based on Xcel’s program guidelines, after an assessment of needs has been made of energy conservation measures, a loan application, limited to two times the annual energy consumption, is submitted to Xcel for all construction and equipment costs. After the application has been approved by Xcel, the energy conservation project is competitively bid, and construction/installation completed.

Upon completion of the project, a loan agreement is submitted to Xcel, and Xcel then issues the loan

Page 62

RAMSEY COUNTY, MINNESOTA

Notes to the Financial Statements

December 31, 2006 proceeds and sets up a repayment schedule through the monthly electric/gas bills. At that time, Xcel also pays the actual engineering costs up to 15% of the loan amount.

Since Xcel loan proceeds are not received until project completion, the County must provide upfront funding for projects, which have received application approval from Xcel. All outstanding applications have been approved as of December 31, 2006. The future minimum loan payments are:

Year Ending Dec. 31

Government

Activities

2007 $19,651

Less: Interest

2008 17,349

2009 16,190

2010 14,555

2011

Total minus Loan payments

Present Value of Minimum

Loan Payments

6,026

73,771

2,874

$70,895

H. Sick Leave, Vacation, and Compensatory Time

Under the County’s personnel policies and union contracts, county employees are granted vacation and sick leave in varying amounts based on length of service. Certain employees are also granted compensatory time. Unused accumulated vacation, vested sick leave, and compensatory time are paid to employees upon termination. Each permanent employee earns up to 25 days vacation leave and 15 days of sick leave per year.

General Obligation Bonds and Notes

The county issues general obligation bonds and notes to provide funds for the acquisition and construction of major capital facilities. General obligation bonds and notes have been issued for both governmental and business-type activities. The outstanding amount of general obligation bonds and notes issued in prior years was $205,232,000. During the year, general obligation bonds totaling

$6,750,000 were issued to provide funding for various capital projects and to refinance certain general obligation bonds.

Page 63

RAMSEY COUNTY, MINNESOTA

Notes to the Financial Statements

December 31, 2006

The following is a list of the long-term debt transactions of the County for the year ended December

31, 2006:

Payable

January

Payable

December 31

Within

Year

GOVERNMENTAL ACTIVITIES:

General Obligation Bonds

Note Payable

Lease Revenue Bonds

Total General Obligation Bonds,

Notes Payable, and Lease

Revenue Bonds

$189,100,000

6,407,000

13,375,000

208,882,000

$ 6,750,000

-

-

$11,130,000

165,000

480,000

$184,720,000 $20,075,000

6,242,000

12,895,000

170,000

495,000

6,750,000 11,775,000 203,857,000 20,740,000

Loans Payable:

Governmental Funds

Internal Service Funds:

General County Buildings

Total Loans Payable

Capital Lease

Claims and Judgments Payable

Governmental Funds

2,933

7,761

10,694

156,112

5,999,739

76,940 11,652 68,221 16,143

-

76,940

-

2,182,934

5,087

16,739

48,600

2,379,961

2,674

70,895

107,512

5,802,712

2,339

18,482

51,960

2,076,737

Compensated Absences:

Governmental Funds

Internal Service Funds:

30,535,749 14,836,979 14,526,077

Data Processing

General County Buildings

677,491 393,044

190,087

Telecommunication

Total Compensated Absences

43,433

31,547,145

32,101

15,452,211

323,057

137,409

27,226

15,013,769

30,846,651 13,884,410

747,478 326,091

343,150

48,308

31,985,587

22,014

14,369,696

Governmental Activities

Long-term Liabilities 246,595,690 24,462,085 29,234,069 241,823,706 37,256,875

BUSINESS-TYPE ACTIVITIES:

General Obligation Bonds:

Enterprise Funds:

Lake Owasso Residence

Ponds at Battle Creek

Total General Obligation Bonds

6,540,000

3,185,000

9,725,000

-

-

-

160,000

135,000

295,000

6,380,000

3,050,000

170,000

140,000

9,430,000 310,000

Compensated Absences:

Enterprise Funds:

Lake Owasso Residence 694,089 382,411

Ponds at Battle Creek

Ramsey Nursing Home

Law Enforcement Services

Total Compensated Absences

Business-Type Activities Long-

Term Liabilities

7,143

830,585

297,283

1,829,100

$ 11,554,100

5,574

462,953

280,214

1,131,152

$ 1,131,152

331,096

4,723

453,417

272,716

1,061,952

$ 1,356,952

745,404

7,994

840,121

304,781

4,765

400,472

304,781

1,898,300

$ 11,318,300

352,312

1,062,330

$ 1,372,330

Page 64

RAMSEY COUNTY, MINNESOTA

Notes to the Financial Statements

December 31, 2006

Internal Service funds predominantly serve the governmental funds. Accordingly, long-term liabilities for them are included as part of the above totals for governmental activities. Also, for the governmental activities, claims and judgments and compensated absences are generally liquidated by the General Fund.

Long-term debt payable at December 31, 2006 comprises the following individual issues:

COUNTY GENERAL OBLIGATION DEBT:

County-wide General Obligation Bonds:

$17,570,000 1996A Capital Improvement Plan Series Bonds, due in annual installments of $725,000 to $1,160,000 through February 1, 2016 - interest at 5.385% $ 9,235,000

$2,485,000 1998 Capital Improvement Plan Series A Bonds, due in annual installments of $240,000 to $295,000 through February 1, 2008 - interest at 4.3992%

$4,865,000 1998 Capital Improvement Plan Refunding Series B Bonds, due in annual installments of $625,000 to $830,000 through February 1, 2007 -interest at 4.3682%

580,000

625,000

$5,485,000 1999 Capital Improvement Plan Series A Bonds, due in annual installments of $145,000 to $440,000 through February 1, 2019 - interest at 4.5494% 3,065,000

$12,335,000 2000 Capital Improvement Plan Series 2000A, due in annual installments of $450,000 to $820,000 through February 1, 2020 – interest at 5.7653% 8,795,000

$4,045,000 2000 Capital Improvement Plan Series 2000A, due in annual Lake Owasso installments of $140,000 to $340,000 through February 1, 2020 – interest at 5.7653% 3,445,000

$11,210,000 2001 Capital Improvement Plan Series 2001A, due in annual installments of $405,000 to $740,000 through February 1, 2021 – interest at 4.7863% 8,400,000

$31,160,000 2002 Capital Improvement Plan Series 2002A, due in annual installments of $260,000 to $5,655,000 through February 1, 2022 – interest at 4.9683% 30,055,000

$3,550,000 Capital Improvement Plan Series 2002A, due in annual Ponds at

Battle Creek installments of $110,000 to $260,000 through February 1, 2022

– interest at 4.9683%

$30,885,000 2002 CIP Refunding Series 2002B, due in annual installments of

$1,325,000 to $3,840,000 through February 1, 2015 – interest at 4.5544%

3,050,000

23,895,000

$4,400,000 2002 State Aid Street Bonds Series 2002C, due in annual installments of

$85,000 to $285,000 through February 1, 2028 – interest at 4.525% 4,080,000

$27,015,000 2003 Capital Improvement Plan Series 2003A, due in annual installments of $910,000 to $1,905,000 through February 2023 – interest at 3.7818% 24,085,000

$12,910,000 2004 Capital Improvement Plan Refunding Bonds 2004A due in annual installments of $210,000 to $1,280,000 through February 1, 2017 – interest at 2.5-4% 11,365,000

$31,960,000 2004 General Obligation Bond Capital Improvement Plan Bonds 2004D due in annual installments of $645,000 to $2,790,000 through February 1, 2024 – interest at 3.5-5% 27,710,000

Page 65

RAMSEY COUNTY, MINNESOTA

Notes to the Financial Statements

December 31, 2006

$9,750,000 2004 General Obligation Bonds 2004E, due in annual installments of

$325,000 to $705,000 through February 1, 2024 – interest at 3.25-4.6% 8,720,000

$2,500,000 2005 General Obligation Bonds 2005A, due in annual installments of

$215,000 to $295,000 through February 1, 2015 – interest at 3.25-4% 2,285,000

$15,075,000 2005 General Obligation Capital Improvement Plan Refunding Bonds,

Series 2005B due in annual installments of $815,000 to $1,615,000 through

February 1, 2020 – interest at 3.5-5%

$2,935,000 2005 General Obligation Capital Improvement Plan Refunding Bonds,

Series 2005B, due in annual Lake Owasso installments of $195,000 to $310,000 through February 1, 2020 – interest at 4-5%

15,075,000

2,935,000

$6,750,000 2006 General Obligation Bonds 2006A, due in annual installments of

$210,000 to $495,000 through February 1, 2026 – interest at 3.85-4.30%

Total County General Obligation Debt

Notes Payable:

$6,872,000 2001 General Obligation Notes due in annual installments of

$150,000 to $372,000 through August 30, 2030 – interest at 3.59%.

6,750,000

194,150,000

6,242,000

REVENUE BONDS:

$13,845,000 2003 Public Facility Lease Revenue Bonds, Series 2003A due in annual installments of $470,000 to $1,025,000 through December 1, 2023 – interest at 4.4375%

Total General Obligation Debt and Revenue Bond Debt

Annual Requirement to Amortize Long-Term Debt

The annual requirements to amortize all long-term debt outstanding as of December 31, 2005, carrying interest rates of 3.5% to 5.77% are:

Years Ending Governmental Activities

December 31 Principal

2007

2008

$ 20,740,000

Interest

$ 8,989,749

2009 11,660,000

2010 11,595,000

2011 11,850,000

Business-Type Activities

Principal Interest

$ 473,583

19,105,000 8,003,623 3,420,000 369,094

365,000

2012-2016 63,230,000 22,859,917 2,090,000 905,684

2017-2021 44,610,000 10,306,104 2,285,000 334,156

2022-2026 19,085,000 1,682,430 260,000 6,663

2027-2030 1,982,000 158,189 -

12,895,000

$213,287,000

Total $203,857,000 $72,398,953 $9,430,000 $2,841,173

The County is subject to Minn. Stat., Sect. 475.53, Subd. 1, as amended January 31, 1990, which limits the amount of bonded debt (exclusive of revenue bonds) that the County may have outstanding to 2 percent of the market value of property within the County. At December 31, 2006, the statutory limit for the County was $824,887,926 providing a debt margin of $661,009,803.

Page 66

RAMSEY COUNTY, MINNESOTA

Notes to the Financial Statements

December 31, 2006

There is $36,393,877 available in the Debt Service Fund to service the General Obligation Bonds.

There are a number of limitations and restrictions contained in the various bond indentures. The

County is in compliance with all significant limitations and restrictions.

The County’s proportionate share of debt at December 31, 2006 of all local governmental units which provide services within the County’s boundaries, and which must be borne by properties in the

County, is summarized below:

Direct Debt

Ramsey County

Outstanding

$ 213,287,000

Percentage

Applicable

To the County

100.00%

County’s

Share

Of Debt

$ 213,287,000

Overlapping Debt

Cities

School Districts

Other

26,900,000

189,225,000

175,350,000

Underlying Debt

Cities and Towns

School Districts

Other

TOTAL

157,797,880

511,395,647

14,397,011

$1,288,352,538

11.82%

64.69%

15.80%

100.00%

100.00%

100.00%

3,180,550

122,413,626

27,705,300

157,797,880

511,395,647

14,397,011

$1,050,177,014

RAP Lease Purchase Agreement and Certificates of Participation

In 1996, Ramsey County entered into a lease-purchase agreement with Norwest Bank Minnesota,

National Association (Trustee), whereby the Trustee issued $3,465,000 in Certificates of Participation

(COPS) to finance the acquisition of land and a building located in St. Paul. Subsequently, Ramsey

County sub-leased the facility to Ramsey Action Program (RAP) to be developed into a one-stop service center housing a variety of programs offered by RAP and other non-profit and public agencies dedicated to relieving poverty. The COPS represent proportionate interests in lease payments to be made under the lease-purchase agreement. The County is obligated through the lease-purchase agreement to make all lease payments and other obligations of the County under the lease. RAP is obligated under the sub-lease agreement to pay directly the Trustee, as agent and on behalf of the

County, monthly lease payments in an amount equal to the annual expenses of the County due to the

Trustee. RAP will own the land and the building at the conclusion of the agreement.

The original 1996 Series COPS issue was refunded in 2004, via the issue 2004B of $1,855,000

Refunding Certificates of Participation (tax exempt), and issue 2004C of $620,000 Refunding

Certificates of Participation (taxable). The taxable portion of the issue was requested by RAP to allow for sub-leasing of the property to for-profit tenants. As of December 31, 2006, the outstanding balance of the 2004B Refunding COPS (tax exempt) is $1,855,000 and the 2004C Refunding COPS

(taxable) is $465,000. The outstanding debt will be paid off on January 1, 2017 for the 2004B

Refunding COPS and January 1, 2010 for the 2004C Refunding COPS. The terms of the refunding agreement transferred trustee rights to Wells Fargo Bank, National Association.

Bond Refundings

In 2005, the County issued $18,010,000 General Obligation Capital Improvement Plan Refunding

Bonds Series 2005B to refund the 1996A and 2000A series General obligation Capital Improvement

Plan bonds. These are crossover refundings with the proceeds deposited with an escrow agent. The

1996A series will be called on February 1, 2007, and the series 2000A series will be called on

Page 67

RAMSEY COUNTY, MINNESOTA

Notes to the Financial Statements

December 31, 2006

February 1, 2008, and be redeemed with proceeds of the escrow account. On February 1, 2008, the

County will “crossover” and begin making payments on the 2005B General Obligation Capital

Improvement Plan Refunding bonds.

J. Rental and Lease Income

Parking Lot:

The County leases land in the City of Little Canada to Taco John’s of Minnesota, which is used as a part of their parking lot. The cost of the land carried on the County’s books is $28,500. The lease period runs through May 6, 2011, and requires the following payments:

2007 $ 3,400

2008 3,503

2009 3,608

2010 3,716

2011 1,567

Total $15,794

Woodview Detention Center:

The County has rented the Woodview Detention Center to the Volunteers of America to be used for office space. The cost of the Center carried on the County’s books is $499,009. Depreciation is

$9,458 per year with a net book value of $169,179 at the end of 2006. The lease requires monthly payments of $12,500 through December 31, 2008.

Roseville Library:

The County Library rents 1,800 square feet of space to Dunn Brothers Coffee in the Roseville Library.

The cost of the Roseville Library carried on the County’s books is $4,585,450. Depreciation is

$91,709 per year with a net book value of $3,036,831 at the end of 2006. The lease period runs through January 2008, and requires the following payments:

2008

Annual

Installments

2007 $65,000

5,416

$70,416

K. Unreserved – Fund Balance

In the fund financial statements, Unreserved Fund Balances were designated to show the portion segregated from unreserved spendable resources as follows:

Page 68

RAMSEY COUNTY, MINNESOTA

Notes to the Financial Statements

December 31, 2006

General

Fund

Capital Other

Projects Governmental

Fund Funds

Designated for:

Capital Expenditures

Subsequent Years' Budget/Expenditure

$ 7,066,670 $12,664,938 $ 391,183

5,122,698 - 20,745,921

2008 Budget 67,114

Loan to Ponds 2,747,781

-

-

620,484

-

-

Affordable Housing 840,739

Road Projects 2,600,000

Other Post-Employment Benefits

Cash Flow

Health Promotion/Health Improvement

Self Insurance

18,976,650

82,016,185

Asset Replacement

Solid Waste Management -

-

Resource Recovery Project -

5,912,296

-

12,664,938

-

-

-

-

-

219,264

-

3,288,514

50,000

-

5,372,904

14,424,327

-

- 127,965

Total Designated 125,350,133

Undesignated 30,592,387

-

5,427,871

Total Unreserved $155,942,520 $12,664,938 $50,668,433

Generally accepted accounting principles require the County to record the difference between the market value and cost of investments. This difference is included as a gain or loss in investment earnings. In 2006, the investment earnings for the General Fund, including unrealized losses on investments, is as follows:

Interest on Investments

Unrealized Loss on Investments

$14,138,556

(1,650,766)

$12,487,790

The County is exposed to various risks of loss related to torts; theft of, damage to, and destruction of assets; errors and omissions; and natural disasters. The County currently reports all of its risk management activities in its General Fund except for Solid Waste risk management activities which are reported in the Solid Waste/Recycling Service Fee Special Revenue Fund and the Ramsey

Nursing Home risk management activities which are reported in the Ramsey Nursing Home

Enterprise Fund. Premiums are paid into the General Fund by the other funds and are available to pay claims, claim reserves, and administrative costs of the program.

Liabilities of the fund are reported when it is probable that a loss has occurred and the amount of the loss can be reasonably estimated. Liabilities include an amount for claims that have been incurred but not reported (IBNRs). The result of the process to estimate the claims liability is not an exact amount as it depends on many complex factors, such as inflation, changes in legal doctrines, and damage awards. Accordingly, claims are reevaluated periodically to consider the effects of inflation, recent claim settlement trends (including frequency and amount of pay-outs), and other economic and social factors. The estimate of the claims liability also includes amounts for incremental claim adjustment expenses regardless of whether allocated to specific claims. Estimated recoveries, for example from salvage or subrogation, are another component of the claims liability estimate.

Changes in the balances of claims liabilities during the past two years are as follows:

Page 69

RAMSEY COUNTY, MINNESOTA

Notes to the Financial Statements

December 31, 2006

Unpaid claims, beginning of fiscal year

Incurred claims (including IBNRs)

Claim payments

Unpaid claims, end of fiscal year

The County carries commercial insurance for:

Ended

12/31/06

2,182,934

2,379,961

$5,802,712

12/31/05

$5,999,739 $4,474,500

3,421,647

1,896,408

$5,999,739

1) Ramsey Nursing Home (self-insured for workers compensation),

2) Lake Owasso Residence,

3) Law Enforcement Service, and

4) Job Training Partnership Act (Administration of program only)

The County also participates in the Workers Compensation Reinsurance Association (WCRA) as required by State law. Ramsey County is responsible for costs up to $1,560,000 for any claim. The

WCRA becomes responsible for the amount in excess of $1,560,000. The limit changes each year.

A premium is paid by the County to the association based on the County’s total salary costs.

At December 31, 2006, Solid Waste/Recycling Service Fee Special Revenue Fund investments of

$1,000,000 were held for the purpose of funding the County’s future claims liability. As a result,

$1,000,000 of Solid Waste/Recycling Service Fee Special Revenue Fund balance is designated for payment of future claims liabilities.

There were no significant reductions in insurance or increases in expenditures from the County’s selfinsurance accounts from the previous year or settlements in excess of insurance coverage or selfinsurance balances for any of the past three fiscal years.

On May 8, 2007, the Ramsey County Board authorized the sale of the $20,860,000 2007A General

Obligation Capital Improvement Plan bonds. These bonds, with maturities of February 1, 2008 through 2027, are to be used to acquire and construct County capital improvement projects authorized in the County’s 2006-2007 Capital Improvement Plan. The bids for this issue will be taken on June 4 th

with the County Board awarding the sale to the bidder with the lowest Total Interest Costs

(TIC) on June 5 th

.

The County Board, on January 16, 2007, approved the sale of the Maplewood Library for $3,300,000.

A new Library in Maplewood is under construction.

The County Board, on June 5, 2007, also approved the sale of the site known as the Taco Johns Site for $1,801,000.

GRANTS

The County receives significant financial assistance from numerous federal, state, and local governmental agencies in the form of grants and entitlements. The disbursement of funds received under these programs generally requires compliance with terms and conditions specified in the grant agreements. The financial assistance received may be subject to an audit pursuant to OMB Circular

A-133 or audits by the grantor agency.

Page 70

RAMSEY COUNTY, MINNESOTA

Notes to the Financial Statements

December 31, 2006

RESOURCE RECOVERY PROJECT

Ramsey and Washington Counties have jointly entered into a construction agreement and a service agreement with Xcel Energy to build and operate a resource recovery facility which would produce refuse derived fuel to be burned at Xcel’s electric plants. The service agreement was amended in

1993 to transfer Xcel’s duties to its subsidiary NRG Energy Inc. (NRG). In 2005, NRG became a publicly held company and was no longer a subsidiary of Xcel. The service agreement obligates the

Counties to deliver 280,800 tons of solid waste per year to the project and pay NRG a service fee based on each ton of solid waste handled by the facility subject to a minimum fee based on 280,800 tons per year minimum and subject to certain other adjustments. NRG is obligated to accept, process, transport, and dispose of most of the Counties’ waste for twenty years.

The joint powers agreement, as discussed in Note 1, established the apportionment between the two

Counties of the administrative costs and service fee payments to NRG. The first year of operations began at 80% Ramsey County and 20% Washington County and was adjusted retroactively to 73%

Ramsey County and 27% Washington County based on the actual proportion of waste delivered from each County to the facility, as determined by NRG. The joint powers agreement provides for an annual adjustment of these cost allocation percentages.

From 1990 through 1993, the Counties financed the entire Service Fee, plus Project Board administrative costs, from the tipping fee charged at the facility. During 1993 and 1994, several court decisions directed that counties could not prohibit solid waste from being delivered out of state. In order to ensure environmentally responsible management of solid waste in Ramsey and Washington

Counties, both counties approved lowering the tipping fee at the Newport Resource Recovery Facility, from $66.79 per ton to $50 per ton, effective January 1, 1994. It became necessary to collect part of the revenue needed to operate the Newport Resource Recovery Facility from the generators of waste. Ramsey and Washington Counties continued the tipping fee at $50 per ton until the tipping fee was lowered to $38 per ton effective June 1, 1996. In August of 2005, the tipping fee was lowered to $34 per ton.

The approved 2006 Project budget for the estimated shortfall in the Service Fee was $18,512,492, financed by Ramsey and Washington Counties. The 2006 budget for the Service Fee assumed waste deliveries to the Resource Recovery Facility of 345,000 tons. During 2006, 329,004 tons of solid waste was delivered to the facility from Ramsey and Washington Counties. The facility also accepted 84,817 tons of out of County waste. 278,156 tons were processed into 224,436 tons of refuse derived fuel (RDF). Process residue and other waste landfilled totaled 65,547 tons. The facility operation resulted in a 76.0% reduction in solid waste being landfilled.

In June 2001, Ramsey and Washington Counties both approved a process to fully explore and consider development and implementation of a public collection system for solid waste. The process was to engage participation of residents, municipalities, solid waste haulers, businesses, and citizen groups as the counties consider development and implementation of a public solid waste collection system. The timeline for this process would allow for potential implementation of public collection in

January 2003. During 2002, the Counties both decided not to implement public collection and instead decided to change the method for collecting the solid waste fee. Beginning in 2003, the fee is collected by waste haulers from the waste generators. This change removes the fee from the property tax statements and more closely ties the fee to the waste generator.

In October 2006, the Facility was sold by NRG to Resource Recovery Technology (RRT). The

Counties approved the sale and have entered into a new processing agreement with RRT. The new agreement is effective January 1, 2007 through December 31, 2012. The terms of the agreement call for payments to RRT for each ton of Ramsey Washington MSW delivered to the facility up to a maximum of 350,000 tons. The payment to RRT starts at $40 per ton delivered for 2007 and 2008.

The fee is then reduced to $33 per ton in 2009, $20 per ton in 2010, $15 per ton in 2011, and $10 per

Page 71

RAMSEY COUNTY, MINNESOTA

Notes to the Financial Statements

December 31, 2006 ton in 2012. The agreement also calls for a Hauler Rebate Program to be established by the

Resource Recovery Project. The Rebate Program began January 1, 2007, and calls for a rebate to be paid to the haulers for each ton of Ramsey Washington MSW delivered to the facility. The amount of the rebate in 2007 is $12 per ton delivered. The new agreement calls for RRT to contract with haulers and landfills so the project has terminated all contracts with those entities effective December

31, 2006.

The joint powers agreement also selected Ramsey County to be the administrative entity for the

Project Board, effective January 1, 1987. Prior to January 1, 1987, Washington County administered project funding from proceeds of $4,000,000 General Obligation Bonds of 1983. The bonds were issued pursuant to the joint powers agreement to finance preliminary costs for the planning and acquisition of the Resource Recovery Facility. Ramsey County has paid its share of the principal and interest on the bonds, which was set at two-thirds at the time of the bond issuance.

Summary financial information for this joint venture as of and for the year ended December 31, 2006 have been subjected to audit in the following table:

Total Fund Assets

Total Fund Liabilities

Total Fund Balance

Total Revenues

Total Expenditures

Net (Decrease) in Fund Balance

Total

Project

$ 7,885,062

1,944,295

5,940,767

13,253,903

13,318,393

$ (64,490)

Share

$ 5,756,095

1,419,335

4,336,760

9,675,349

9,722,427

$ (47,078)

VERIFICATION COLLABORATIVE EXECUTIVE COMMITTEE

Ramsey County entered into a joint powers agreement pursuant to the provisions of Minnesota

Statute Sect. 471.59, to oversee any entity under contract to provide vendor certification services to the members of the Inclusiveness in Contracting Collaborative and to handle appeals of vendor certification status and other certification-related matters that may arise from time to time. The committee is composed of one representative of each of the members. Ramsey County joined with

Hennepin County, the City of Minneapolis, the City of St. Paul, and Independent School District 625.

Currently, a fiscal agent is not needed.

E. Jointly Governed Organizations

Ramsey County, in conjunction with other local governments and various private organizations have formed the collaboratives listed below:

• North Suburban Collaborative: The collaborative was established to receive and expend grant funds on new prevention and early intervention children services. The Roseville School District is the fiscal agent. Ramsey County has no operational or financial control over the collaborative.

Financial statements are available from the Roseville School District, 1251 West County Road

B2, Roseville, MN 55113.

• Children's Mental Health Collaborative: The collaborative was established to receive and expend grant funds on new prevention and early intervention children's mental health issues. Ramsey

County is the fiscal agent. Ramsey County has no operational or financial control over the collaborative. Currently, the collaborative is not required to be audited.

• Saint Paul-Ramsey County Children's Initiative Collaborative: The collaborative was established to receive and expend grant funds on new prevention and early intervention family services.

Ramsey County is the fiscal agent. Ramsey County has no operational or financial control over

Page 72

RAMSEY COUNTY, MINNESOTA

Notes to the Financial Statements

December 31, 2006 the collaborative. Currently, the collaborative is not required to be audited. Therefore, no audited financial statements are available.

• Ramsey County LCTS Collaborative Partnership: The collaborative was established to receive and redistribute grant funds to other collaboratives. Ramsey County is the fiscal agent. Ramsey

County has no operational or financial control over the collaborative. Currently, the collaborative is not required to be audited. Therefore, no audited financial statements are available.

• Inclusiveness Contracting Collaborative: The collaborative was established to create a centralized program for certification of businesses in the members' respective small businesses, minorityowned business, or women-owned business enterprise programs. An outside contractor, Impact

Inc. is the fiscal agent. Ramsey County has no operational or financial control over the collaborative. Currently, the collaborative is not required to be audited. Therefore, no audited financial statements are available.

F. Defined Benefit Pension Plans – Statewide

Plan description:

All full-time and certain part-time employees of Ramsey County are covered by defined benefit pension plans administered by the Public Employees Retirement Association of Minnesota (PERA).

The PERA administers the Public Employees Retirement Fund, the Public Employees Police and Fire

Fund, and the Public Employees Correctional Fund, which are cost sharing, multiple-employer retirement plans. These plans are established and administered in accordance with Minn. Stat. chs.

353 and 356.

Public Employees Retirement Fund members belong to either the Coordinated Plan or the Basic

Plan. Coordinated Plan members are covered by Social Security, and Basic Plan members are not.

All new members must participate in the Coordinated Plan. All police officers, fire fighters, and peace officers, who qualify for membership by statute, are covered by the Public Employees Police and Fire

Fund. Members who are employed in a County correctional institution and have direct contact with inmates, are covered by the Public Employees Correctional Fund.

The PERA provides retirement benefits as well as disability benefits to members and benefits to survivors upon death of eligible members. Benefits are established by state statute and vest after three years of credited service. The retirement benefits are based on a member’s highest average salary for any five successive years of allowable service, age, and years of credit at termination of service.

Two methods are used to compute benefits for Coordinated and Basic Plan members. The retiring member receives the higher of a step-rate benefit accrual formula (Method 1) or a level accrual formula (Method 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 thereafter. For a

Coordinated Plan member, the annuity accrual rate is 1.2 percent of average salary for each of the first ten years and 1.7 percent for each successive year. Under Method 2, the annuity accrual rate is

2.7 percent of average salary for Basic Plan members and 1.7 percent for Coordinated Plan members for each year of service. For the Public Employees Police and Fire Fund members, the annuity accrual rate is 3.0 percent of average salary for each year of service. For Public Employees

Correctional Fund members, the annuity accrual rate is 1.9 percent of average salary for each year of service.

For all Public Employees Retirement Fund members, whose annuity is calculated using Method 1, and for all Public Employees Police and Fire Fund and Public Employees Correctional Fund members, a full annuity is available when age plus years of service equal 90. A reduced retirement annuity is also available to eligible members seeking early retirement.

Page 73

RAMSEY COUNTY, MINNESOTA

Notes to the Financial Statements

December 31, 2006

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

The PERA issues a publicly available financial report that includes financial statements and required supplementary information for the Public Employees Retirement Fund, the Public Employees Police and Fire Fund, and the Public Employees Correctional Fund. That report may be obtained on the web at mnpera.org; by writing to PERA at 60 Empire Drive, Suite 200, Saint Paul, Minnesota 55103-

2088; or by calling (651) 296-7460 or 1-800-652-9026.

Funding policy:

Pension benefits are funded from member and employer contributions and income from the investment of fund assets. Minn. Stat. ch. 353 sets the rates for employer and employee contributions. These statutes are established and amended by the state legislature. The County makes annual contributions to the pension plans equal to the amount required by state statutes.

Public Employees Retirement Fund Basic Plan members and Coordinated Plan members were required to contribute 9.10 and 5.50 percent, respectively, of their annual covered salary in 2006.

Contribution rates in the Coordinated Plan increased in 2007 to 5.75 percent. Public Employees

Police and Fire Fund members were required to contribute 7.00 percent of their annual covered salary. That rate increased to 7.80 percent in 2007. Public Employees Correctional Fund members are required to contribute 5.83 percent of their annual covered salary.

The County is required to contribute the following percentages of annual covered payroll in 2006 and

2007:

Public Employee Retirement Fund

Basic Plan Members

Coordinated Plan Members

Public Employees Police and Fire Fund

Public Employees Correctional Fund

2006 2007

11.78%

6.00%

10.50%

8.75%

11.78%

6.25%

11.70%

8.75%

The County’s contributions for the years ending December 31, 2006, 2005, and 2004, for the Public

Employees Retirement Fund, the Public Employees Police and Fire Fund, and the Public Employees

Correctional Fund, were:

Year

Employees

Retirement

2006 $9,725,396

2005

2004

Public

Fund

8,878,364

9,013,835

Public

Employees

Police & Fire

Fund

$1,692,628

1,453,899

1,481,914

Public

Employees

Correctional

Fund

$1,492,234

1,394,596

1,395,897

These contributions are equal to the contractually required contributions for each year as set by state statute.

Defined Contribution Plan

The Public Employees Defined Contribution Plan is a multiple-employer deferred compensation plan for local government officials, except elected County Sheriffs. The plan is established and administered in accordance with Minn. Stat. Ch 353D. The plan is a tax qualified plan under Section

401(a) of the Internal Revenue Code and all contributions by or on behalf of employees are tax deferred until time of withdrawal.

Page 74

RAMSEY COUNTY, MINNESOTA

Notes to the Financial Statements

December 31, 2006

Plan benefits depend solely on amounts contributed to the plan plus investment earnings, less administrative expenses. Minn. Stat. Ch. 353D.03 specifies the employee and employer contribution rates for those qualified personnel who elect to participate. An eligible elected official, who decides to participate, contributes five percent of salary, which is matched by the employer.

No vesting period is required to receive benefits in the Defined Contribution Plan. At the time of retirement or termination, the market value of the member’s account is distributed to the member or another qualified plan.

The County’s contributions for the years ending December 31, 2006, 2005, and 2004, were $12,533,

$11,325, and $9,364, respectively, equal to the contractually required contributions for each year as set by state statute.

G. Post Employment Benefits

Pursuant to Minnesota Statutes, Section 471.61, Subd. 2a., Ramsey County provides postemployment health care benefits to all full-time employees who meet County eligible requirements.

At year-end, 1,046 regular retirees and 486 early retirees meet those eligibility requirements. The

County pays the health insurance premiums for regular retirees and their spouses who sign up under one of two different health insurance carriers up to a prescribed maximum.

Early retirees and their spouses receive the same health insurance County contribution as full-time employees. The rates are based on the County’s group health policy rates. Expenditures are recognized when the premiums are charged to the departmental budgets. The County also reimburses retirees who retired prior to July 1, 1990, for insurance payments made to the Medicare program. Medicare part “B” insurance payments are reimbursed to retirees on a quarterly basis.

The County’s 2006 expenditures for post-employment benefits are:

Regular retirees

Early retirees

$5,048,809

3,691,616

Medicare “B” 608,822

$9,349,247

Page 75

REQUIRED SUPPLEMENTARY

INFORMATION

Page 76

SCHEDULE 1

RAMSEY COUNTY, MINNESOTA

GENERAL FUND

SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES

BUDGET AND ACTUAL

FOR THE YEAR ENDED DECEMBER 31, 2006

REVENUES

Property Taxes

Licenses and Permits

Intergovernmental

Private Grants and Donations

Charges for Services

Fines and Forfeitures

Sales

Rental Income

Investment Earnings

Program Recoveries - Community

Human Services

Miscellaneous

Total Revenues

EXPENDITURES

Current:

General Government:

County Board of Commissioners

Charter Commission

Courts

County Manager

Property Records and Revenue

Attorney

Property Management

Veterans Service Officer

Central Services

Contingency

Computer Equipment and Software

Unallocated General Expenditures

Total General Government

Public Safety:

Emergency Communications

Sheriff

Community Corrections

Medical Examiner

Total Public Safety

Highways and Streets:

Public Works

Sanitation:

Environmental Health

Health:

Public Health

Miscellaneous Health

Total Health

BUDGETED AMOUNTS

ORIGINAL

$ 186,941,467

686,483

144,725,381

125

42,245,796

13,000

1,140,092

1,287,584

8,400,000

4,033,561

780,761

390,254,250

FINAL

$ 177,923,607

686,483

165,808,683

313,559

43,023,300

7,200

1,430,973

1,300,928

8,400,000

4,194,367

738,109

403,827,209

ACTUAL

AMOUNTS ON

BUDGETARY

BASIS

$ 178,759,012

619,459

169,360,189

139,492

40,660,735

7,200

1,575,167

1,343,237

12,400,637

3,790,928

1,646,355

410,302,411

VARIANCE WITH

FINAL BUDGET

OVER

(UNDER)

$ 835,405

(67,024)

3,551,506

(174,067)

(2,362,565)

-

144,194

42,309

4,000,637

(403,439)

908,246

6,475,202

1,473,646

8,500

2,766,608

8,765,056

11,929,354

28,778,973

4,843,226

341,737

409,052

2,000,000

5,820,690

16,457,689

83,594,531

3,441,783

33,258,807

53,514,014

1,707,693

91,922,297

16,302,301

706,832

18,945,766

350,000

19,295,766

1,502,281

8,595

2,800,414

9,015,991

13,315,303

29,356,430

4,827,017

345,805

410,331

1,271,728

5,820,690

13,227,141

81,901,726

3,441,704

37,397,315

54,703,849

1,769,000

97,311,868

16,927,686

770,066

19,720,892

350,000

20,070,892

1,485,580

592

2,800,414

8,660,655

12,779,926

29,273,685

4,720,247

345,781

382,729

-

3,005,501

5,571,532

69,026,642

3,350,590

35,711,958

53,892,347

1,768,999

94,723,894

16,340,651

599,512

16,681,824

350,000

17,031,824

(16,701)

(8,003)

-

(355,336)

(535,377)

(82,745)

(106,770)

(24)

(27,602)

(1,271,728)

(2,815,189)

(7,655,609)

(12,875,084)

(91,114)

(1,685,357)

(811,502)

(1)

(2,587,974)

(587,035)

(170,554)

(3,039,068)

-

(3,039,068)

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

Page 77

SCHEDULE 1

(continued)

RAMSEY COUNTY, MINNESOTA

GENERAL FUND

SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES

BUDGET AND ACTUAL

FOR THE YEAR ENDED DECEMBER 31, 2006

EXPENDITURES (continued)

Human Services

Income Maintenance

Social Services

Total Human Services

Culture and Recreation:

Parks and Recreation

St Paul-Ramsey Historical Society

Landmark Center Management

Total Culture and Recreation

Conservation of Natural Resources:

Extension Service

Ramsey Conservation District

Total Conservation of Natural Resources

Debt Service:

Principal Retirement

Total Expenditures

Excess (Deficiency) of Revenues

over (under) Expenditures

OTHER FINANCING SOURCES (USES)

Xcel Energy Loan Proceeds

Operating Transfers In

Operating Transfers Out

Total Other Financing Sources (Uses)

Net Change in Fund Balances

BUDGETED AMOUNTS

ORIGINAL FINAL

28,695,283

142,198,254

170,893,537

8,374,012

91,282

910,706

9,376,000

65,626

392,908

458,534

2,221

392,552,019

(2,297,769)

-

15,000

-

15,000

(2,282,769)

27,500,667

149,850,215

177,350,882

8,673,925

91,282

910,706

9,675,913

65,771

392,908

458,679

12,181

404,479,893

(652,684)

76,940

1,005,741

(1,675,068)

(592,387)

(1,245,071)

ACTUAL

AMOUNTS ON

BUDGETARY

BASIS

VARIANCE WITH

FINAL BUDGET

OVER

(UNDER)

27,736,126

148,809,148

176,545,274

8,471,194

91,282

899,452

9,461,928

65,764

309,868

375,632

12,179

384,117,536

26,184,875

76,940

990,741

(1,675,068)

(607,387)

25,577,488

Fund Balances - Beginning

Increase (Decrease) in Reserve for Inventories

Fund Balances - Ending

153,344,699

-

$ 147,844,219

153,344,699

-

$ 148,881,917 $

153,344,699

275,651

175,980,127 $

235,459

(1,041,067)

(805,608)

(202,731)

-

(11,254)

(213,985)

(7)

(83,040)

(83,047)

(2)

(20,362,357)

26,837,559

-

(15,000)

-

(15,000)

26,822,559

-

-

275,651

27,098,210

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

Page 78

RAMSEY COUNTY, MINNESOTA

Notes to the Required Supplementary Information

December 31, 2006

Budgetary Information

The County Board adopts an annual budget for the General Fund.

The Statement of Revenues, Expenditures and Changes in Fund Balances for Governmental Funds is prepared on a GAAP basis. Results of operations included in the Schedule of Revenues, Expenditures, and Changes in Fund Balances Budget and Actual – General Fund are presented on a Non-GAAP budgetary basis. The primary difference between the two bases of accounting is that the “actual on a budgetary basis” column includes encumbrances and does not include expenditures from prior year budget reserves.

Adjustments necessary to convert actual expenditures reported on the budgetary basis in the Schedule of

Revenues, Expenditures and Changes in Fund Balances – Budget and Actual to the GAAP basis as reported in the Statement of Revenues, Expenditures and Changes in Fund Balances – Governmental

Funds are:

Actual Expenditures – Budgetary Basis

Decrease:

Encumbrances

Increase:

Expenditures in 2006 from December 31, 2005

Expenditures – GAAP Basis

General

$384,117,536

(14,423,342)

20,450,747

$390,144,941

Unbudgeted Revenue $ (2,809,694)

Encumbrances (14,423,342)

Expenditures in 2006 from December 31, 2005 Reserves for Encumbrances

Adjustment to Reconcile Statement of Revenues, Expenditures and

Change in Fund Balances – Budget and Actual to Statement of

Revenues, Expenditures and Changes in Fund Balances

20,450,747

$ 3,217,711

Based on a process established by the County Manager and staff, all departments of the government submit requests for appropriations to the County Manager every two years. After review, analysis and discussions with the departments, the County Manager’s proposed budget is presented to the County

Board for review. The Board holds public hearings and a final budget must be prepared and adopted no later than December 31.

The appropriated budget is prepared by fund, function, and department. Budgets may be amended during the year with the approval of the County Manager or County Board as required by the County’s

Administrative Code. The County Manager is authorized to transfer budgeted amounts within departments or appropriate certain revenues received in excess of the original budget estimate.

Transfers of appropriations between departments and other transfers of appropriations require County

Board approval. Supplemental appropriations are reviewed by the County Manager’s office and submitted to the County Board for their approval. If approved, the adjustments are implemented by the

Budgeting and Accounting Office by budget revision. Supplemental appropriations required during the year were immaterial. Expenditures may not legally exceed budgeted appropriations at the department level. All appropriations, which are not expended, encumbered, or reserved, lapse at year end.

Encumbrance accounting is employed in governmental funds. Encumbrances (e.g., purchase orders, contracts, capital reserves, and other commitments for the expenditure of monies) outstanding at year end are reported as reservations of fund balances and do not constitute expenditures or liabilities because the commitments will be reappropriated and honored during the subsequent year.

Page 79

MAJOR FUND BUDGET AND ACTUAL

SCHEDULE

Page 80

SCHEDULE 2

RAMSEY COUNTY, MINNESOTA

DEBT SERVICE FUND

SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES

BUDGETARY COMPARISONS (NON-GAAP BUDGETARY BASIS)

FOR THE YEAR ENDED DECEMBER 31, 2006

REVENUES

Property taxes

Intergovernmental

Investment Earnings

Total revenues

EXPENDITURES

Debt service:

Principal retirement

Interest

Total expenditures

Excess (Deficiency) of Revenues

over (under) Expenditures

Fund balances - beginning

Fund balances - ending

BUDGETED AMOUNTS

ORIGINAL

$ 16,129,617

1,799,727

1,617,204

19,546,548

FINAL

$ 16,129,617

1,979,977

2,203,311

20,312,905

ACTUAL

AMOUNTS ON

BUDGETARY

BASIS

$ 16,695,047

1,038,495

1,615,761

19,349,303

VARIANCE WITH

FINAL BUDGET

OVER

(UNDER)

$ 565,430

(941,482)

(587,550)

(963,602)

12,493,000

9,087,276

21,580,276

(2,033,728)

12,493,000

9,853,633

22,346,633

(2,033,728)

12,520,000

9,485,358

22,005,358

(2,656,055)

55,046,378

$ 55,658,204

55,046,378

$ 55,658,204 $

55,046,378

55,035,877 $

27,000

(368,275)

(341,275)

(622,327)

-

-

(622,327)

Page 81

COMBINING STATEMENTS

Page 82

NONMAJOR GOVERNMENTAL FUNDS

SPECIAL REVENUE FUNDS

To account for the proceeds of specific revenue sources (other than expendable trusts or major capital projects) that are legally restricted to expenditures for specified purposes.

County Library

- To provide a public library system where governmental units do not maintain their own. The tax levy is on suburban property only.

Solid Waste/Recycling Service Fee

- To account for collection of the Waste Management Fee, which is a separate fee on the tax statement. These funds are used to pay for solid waste management programs throughout the County. A portion of the funds are remitted to the

Resource Recovery Project Board for Ramsey County’s share of vendor service fees for operation of a resource recovery facility. The Project Board is a joint venture with Washington

County.

Housing & Redevelopment Authority

- To account for funds provided by the U.S. Department of Housing and Urban Development for development projects in suburban communities benefiting persons of low and moderate income. This fund was formerly known as the

Community Development Block Grants Special Revenue Fund.

Workforce Solutions

- Originally enacted in 1973 under the Comprehensive Employment and

Training Act (CETA) and revised in 1982 by the Federal Government to provide job training and employment opportunities for economically disadvantaged, unemployed, and underemployed persons. In addition, the fund also accounts for state dislocated worker programs and the

Minnesota Youth Program. Workforce Solutions also performs services under the MFIP program to assist welfare recipients to prepare for and obtain employment.

State Funding for Courts

- To account for funds provided by the State to finance the eventual takeover of the Courts system.

State Public Defender

- To account for funds provided by the State to finance the operations of the Public Defender Office under the State takeover of the Courts system.

Saint Paul Public Health JPA –

A portion of the Saint Paul Public Health Department was merged into the Ramsey County Public Health Department on July 1, 1997 by a joint powers agreement between Ramsey County and Saint Paul. This fund accounts for some of the activities previously performed by the former Saint Paul Public Health Department.

Gifts and Donations –

To account for gifts and donations made for various purposes such as books for the libraries, activities and personal hygiene items for nursing home patients, provision of Home Delivered Meals, etc.

Page 83

NONMAJOR GOVERNMENTAL FUNDS

(Continued)

Regional Railroad Authority

- To provide for the preservation of a railway corridor for future public transit use and to provide for the preservation and improvement of local rail service.

Sheriff –

To account for revenues and expenditures dedicated for specific activities and projects of the Sheriff’s Department.

Corrections

– To account for revenues from various sources to benefit Community Corrections clients.

Property Records

- To account for certain fees which are to be used for providing modern, retrievable information from the county’s system of recorded documents and clean up of polluted property.

County Attorney

- To account for revenues and expenditures dedicated for specific activities or projects of the County Attorney’s Office.

Health Promotion/Health Improvement –

To account for funds provided by the County’s health insurer for work-site health promotion purposes.

Parks & Recreation –

To account for funds provided by grants and donations to develop an inter-city skating program and replace/repair buildings and other improvements in the County’s

Regional Park & Trail System.

Nursing Home Patients’ Activity

– To account for revenues from donations, canteen and vending machines, and expenditures for patients’ activities and recreational supplies.

Forfeited Tax Sale

– To account for all funds collected per State Statute for sale of real estate forfeited for unpaid taxes.

Law Library

– To account for revenues and expenditures of the Law Library. Revenue is derived from fees collected from certain litigants and expenditures are primarily law books and operational costs to run the Library.

Regional Railroad Authority Debt Service Fund

– To account for revenue dedicated to pay for principal and interest on future long-term debt for the Regional Rail Authority.

Regional Railroad Authority Capital Projects Fund

– To account for revenues and expenditures of major capital projects in the Regional Railroad Authority.

Page 84

RAMSEY COUNTY, MINNESOTA

COMBINING BALANCE SHEET

NONMAJOR GOVERNMENTAL FUNDS

DECEMBER 31, 2006

WITH COMPARATIVE TOTALS FOR DECEMBER 31, 2005

STATEMENT 1

County

Library

Special

Revenue

Fund

ASSETS

Cash and Cash Equivalents

Petty Cash and Change Funds

Receivables (Net):

Taxes

Accounts

Accrued Interest

Due from Other Funds

Due from Other Governments

Loans Receivable

Inventories

Advance to other Governments

Total Assets

LIABILITIES AND FUND BALANCES

Liabilities:

Salaries Payable

Accounts Payable

Contracts Payable

Due to Other Funds

Due to Other Governments

Deferred Revenue

Advance from Other Funds

Total Liabilities

Fund Balances:

Reserved for:

Encumbrances

Inventories

Petty Cash

Debt Service

Unreserved

Total Fund Balances

Total Liabilities and Fund Balances

$ 4,540,810

1,450

$

112,961

7,936

-

-

-

-

5,187

-

4,668,344

191,472

110,540

-

6,512

6,575

263,734

-

578,833

$

-

5,187

1,450

-

4,082,874

4,089,511

4,668,344 $

Solid Waste/ Housing and State

Recycling Redevelopment Funding

Service Fee

Special

Revenue Fund

Authority

Special

Solutions

Special

For Courts

Special

Revenue Fund Revenue Fund Revenue Fund

State

Public

Defender

Special

Revenue Fund

St. Paul

Public

Health JPA

Special

Revenue Fund

Regional

Gifts Railroad

Donations

Special

Authority

Special

Sheriff

Special

Revenue Fund Revenue Fund Revenue Fund

21,012,571

50

$

12,938

1,476,480

-

-

1,209

7,000

22,510,248

-

-

55,576

147,202

-

127,094

1,602,032

13,011

-

1,944,915

768,052

-

50

-

19,797,231

20,565,333

22,510,248 $

773,724

-

-

59,512

77,589

-

49,543

5,979,781

-

-

6,940,149

$

5,275

78

60,086

4,513

208,950

5,977,353

-

6,256,255

683,894

683,894

-

-

-

-

6,940,149 $

1,196,900

350

$

-

-

-

-

4,140,483

-

159

-

5,337,892

214,568

230,263

-

78,762

72,036

246,405

4,500,000

5,342,034

-

159

350

-

(4,651)

(4,142)

5,337,892 $

10

-

-

-

-

-

431,289

-

431,299

-

-

$

220,299

-

-

-

-

-

211,000

431,299

431,299

-

-

-

-

-

-

$

1,863,789

100

$

-

1,863,889

-

-

-

-

-

-

-

134,954

522

-

-

-

1,728,413

-

1,863,889

1,863,889

-

-

-

-

-

-

$

3,720,502

640

$

-

210,834

-

1,386

539,778

-

49,681

-

4,522,821

84,452

114,337

79,470

70

257,402

5,735

-

541,466

223,975

49,681

640

-

3,707,059

3,981,355

4,522,821 $

385,619

-

-

385,619

-

-

-

-

-

-

-

$ 13,695,255

100

181,905

8,828

-

-

16,757

-

13,902,845

-

-

$

-

10,179

-

-

-

-

-

10,179

-

18,901

124,947

73,580

670

196,937

-

415,035

375,440

375,440

-

-

-

-

385,619 $

1,046,123

-

100

-

12,441,587

13,487,810

13,902,845 $

386,147

-

-

386,147

-

-

-

-

-

-

-

-

89,977

-

-

2,540

-

-

92,517

293,630

293,630

-

-

-

-

386,147

(Continued)

Page 85

RAMSEY COUNTY, MINNESOTA

COMBINING BALANCE SHEET

NONMAJOR GOVERNMENTAL FUNDS

DECEMBER 31, 2006

WITH COMPARATIVE TOTALS FOR DECEMBER 31, 2005

Special

Revenue

Fund

Health

Promotion

Health

Records

Special

Attorney

Special

Improvement

Special

Revenue Fund Revenue Fund Revenue Fund

Parks Nursing and Home

Recreation Patients'

Special

Revenue

Fund

Activity

Special

Revenue Fund

ASSETS

Cash and Cash Equivalents

Petty Cash and Change Funds

Receivables (Net):

Taxes

Accounts

Accrued Interest

Due from Other Funds

Due from Other Governments

Installment Loans Receivable

Inventories

Advance to other Governments

Total Assets

$ 554,767

200

$ 3,475,452

-

-

554,967

-

-

-

-

-

-

-

4,896

-

-

-

-

535,000

-

-

4,015,348

$ 401,732

-

-

401,732

-

-

-

-

-

-

-

$ 127,965

-

-

127,965

-

-

-

-

-

-

-

$ 444,882

-

-

444,882

-

-

-

-

-

-

-

$ 14,992

-

-

14,992

-

-

-

-

-

-

-

$

Forfeited

Tax Sale

Special

Revenue

Fund

101,721

-

-

431,171

-

-

-

-

820

-

533,712

$

Law

Library

Special

Revenue

Fund

837,995

20

-

161

-

-

41,772

-

879,948

-

-

$

Regional

Railroad

Authority

Debt

Service Fund

4,560,645

-

-

4,560,645

-

-

-

-

-

-

-

$

Regional

Railroad

Authority

Capital

Projects Fund

STATEMENT 1

(Continued)

Total

Nonmajor

Governmental

Funds

2006 2005

3,430,866

-

-

3,430,866

-

-

-

-

-

-

-

$ 61,526,344

2,910

$ 52,202,069

2,710

307,804

2,194,922

82,485

1,386

5,220,831

6,514,781

55,847

7,000

75,914,310

177,206

889,945

72,938

7,148

5,359,630

5,227,509

44,860

7,000

63,991,015

LIABILITIES AND FUND BALANCES

Liabilities:

Salaries Payable

Accounts Payable

Contracts Payable

Due to Other Funds

Due to Other Governments

Deferred Revenue

Advance from Other Funds

Total Liabilities

Fund balances:

Reserved for:

Encumbrances

Inventories

Petty Cash

Debt Service

Unreserved

Total Fund Balances

Total Liabilities and Fund Balances $

-

17,710

1,750

-

-

-

-

19,460

-

55,500

-

535,000

-

-

-

590,500

200

-

-

-

535,307

535,507

554,967 $

3,424,848

3,424,848

-

-

-

-

4,015,348 $

401,732

401,732

-

-

-

-

401,732 $

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

127,965

127,965

-

-

-

-

127,965 $

-

6,880

-

-

-

-

-

6,880

438,002

438,002

-

-

-

-

444,882 $

-

788

-

-

-

-

-

788

14,204

14,204

-

-

-

-

14,992 $

11,392

738

-

15,403

10,987

431,171

-

469,691

9,789

11,293

-

3,602

-

-

-

24,684

-

820

-

-

63,201

64,021

533,712 $

20

-

-

-

855,244

855,264

879,948 $

-

4,560,645

-

-

-

4,560,645

4,560,645 $

-

-

-

-

-

-

-

-

-

-

-

-

-

-

927,777

759,408

264,503

365,036

2,162,942

9,397,759

4,711,000

18,588,425

954,982

6,379,995

857,396

288,595

756,686

8,233,531

4,605,000

22,076,185

3,430,866

3,430,866

-

-

-

-

3,430,866 $

2,038,150

55,847

2,810

4,560,645

50,668,433

57,325,885

75,914,310 $

1,830,178

44,860

2,610

-

40,037,182

41,914,830

63,991,015

Page 86

RAMSEY COUNTY, MINNESOTA

COMBINING STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES

NONMAJOR GOVERNMENTAL FUNDS

FOR THE YEAR ENDED DECEMBER 31, 2006

WITH COMPARATIVE TOTALS FOR THE YEAR ENDED DECEMBER 31, 2005

STATEMENT 2

REVENUES

Taxes

Licenses and Permits

Intergovernmental

Private Grants and Donations

Charges for Services

Fines and Forfeitures

Sales

Rental Income

Investment Earnings

Miscellaneous

Total Revenues

EXPENDITURES

Current:

General Government

Public Safety

Sanitation

Health

Human Services

Culture and Recreation

Economic Development and Assistance

Total Expenditures

Excess (Deficiency) of Revenues

Over (Under) Expenditures

OTHER FINANCING SOURCES (USES)

Proceeds from Sale of Capital Assts

Transfers In

Transfers Out

Total Other Financing Sources (Uses)

Net Change in Fund Balances

Fund Balances - Beginning

Prior Period Adjustment

Fund Balances - Beginning as Restated

Increase (Decrease) in Reserve for Inventories

Fund Balances - Ending

$

$

County

Library

Special

Revenue

Fund

Special Special Special Special Special Special Special Special Special

Revenue Fund Revenue Fund Revenue Fund Revenue Fund Revenue Fund Revenue Fund Revenue Fund Revenue Fund Revenue Fund

6,810,442

-

736,642

-

1,000

540,875

51,960

268,759

155,439

27,404

8,592,521

$ -

647,236

1,345,378

-

17,429,950

-

8,480

-

986,679

98,798

20,516,521

$

-

8,148,859

-

-

-

-

-

8,148,859

443,662

Solid Waste/

Service Fee

16,385,988

-

-

-

-

-

-

16,385,988

4,130,533

-

81,232

-

81,232

524,894

3,563,079

-

3,563,079

1,538

4,089,511 $

-

-

-

-

4,130,533

16,434,800

-

16,434,800

20,565,333

-

$

Housing and

Recycling Redevelopment Workforce Funding

Authority Solutions

1,821,355

-

-

-

92,350

-

-

-

158,675

430,712

2,503,092

$ 584,420

-

19,910,214

-

-

-

-

-

-

-

20,494,634

$

-

-

2,427,656

-

-

-

-

2,427,656

75,436

-

-

-

-

75,436

608,458

-

608,458

683,894

-

$

-

-

20,488,246

-

-

-

-

20,488,246

6,388

-

-

-

-

6,388

(10,689)

-

(10,689)

159

(4,142) $

State

For Courts

6,730,879

-

-

-

-

-

-

-

-

74

6,730,953

$

6,730,953

-

-

-

-

-

-

6,730,953

-

-

-

-

-

-

-

-

-

-

-

$

State

Public

Defender

3,846,032

-

-

-

-

-

-

-

-

-

3,846,032

$

3,846,032

-

-

-

-

-

-

3,846,032

-

-

-

-

-

-

-

-

-

-

-

$

St. Paul

Public

Health JPA

2,846,547

60,585

4,168,648

4,662

1,613,110

-

-

-

18,031

210,668

8,922,251

$

-

8,846,593

-

-

-

-

-

8,846,593

75,658

-

47,146

-

47,146

122,804

3,848,788

-

3,848,788

9,763

3,981,355 $

Donations

-

170,165

-

-

-

-

-

-

9,862

-

180,027

$

3,304

8,063

-

10,834

152,658

76,693

-

251,552

(71,525)

Regional

Railroad

Authority

2,509,105

-

849,168

-

-

37,713

-

-

633,216

2,039

4,031,241

$

1,998,990

-

-

-

-

-

-

1,998,990

2,032,251

Sheriff

-

-

-

-

(71,525)

446,965

-

446,965

375,440

-

$

-

-

(425,984)

(425,984)

1,606,267

11,881,543

-

11,881,543

13,487,810

-

$ 293,630

(Continued)

-

-

-

-

-

1,457

292,173

-

292,173

-

67,600

-

92,372

145,419

122,519

431,136

-

1,223

7,711

867,980

-

866,523

-

-

-

-

-

866,523

1,457

Page 87

RAMSEY COUNTY, MINNESOTA

COMBINING STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES

NONMAJOR GOVERNMENTAL FUNDS

FOR THE YEAR ENDED DECEMBER 31, 2006

WITH COMPARATIVE TOTALS FOR THE YEAR ENDED DECEMBER 31, 2005

Corrections

Special

Revenue

Fund

Property

Records

County

Attorney

Health

Promotion

Health

Improvement

Special Special Special

Revenue Fund Revenue Fund Revenue Fund

Parks Nursing and Home

Recreation

Special

Revenue

Fund

Patients'

Activity

Special

Revenue Fund

Forfeited

Tax Sale

Special

Revenue

Fund

REVENUES

Taxes

Licenses and Permits

Intergovernmental

Private Grants and Donations

Charges for Services

Fines and Forfeitures

Sales

Rental Income

Investment Earnings

Miscellaneous

Total Revenues

EXPENDITURES

Current:

General Government

Public Safety

Sanitation

Health

Human Services

Culture and Recreation

Economic Development and Assistance

Total Expenditures

Excess (Deficiency) of Revenues

Over (Under) Expenditures

OTHER FINANCING SOURCES (USES)

Proceeds from Sale of Capital Assts

Transfers In

Transfers Out

Total Other Financing Sources (Uses)

Net Change in Fund Balances

Fund Balances - Beginning

Prior Period Adjustment

Fund Balances - Beginning as Restated

Increase (Decrease) in Reserve for Inventories

Fund Balances - Ending

$

$

-

1,105

-

-

245,665

-

266,791

-

1,123

16,993

531,677

$

-

359,322

-

-

-

-

-

359,322

172,355

-

-

-

-

172,355

363,152

-

363,152

-

535,507 $

903,550

-

-

-

1,285,028

-

-

-

4,896

-

2,193,474

1,670,842

-

-

-

-

-

-

1,670,842

522,632

$

-

-

-

-

522,632

2,902,216

-

2,902,216

3,424,848

-

$

-

75,377

-

-

-

-

-

-

-

30,600

105,977

$

22,778

-

-

-

-

-

-

22,778

83,199

-

-

-

-

83,199

318,533

-

318,533

401,732

-

$

-

-

-

-

-

-

-

-

35,092

-

35,092

35,092

-

-

-

-

-

-

-

$

353,753

15,020

-

-

-

-

-

-

-

330

369,103

$

-

476,600

-

-

-

-

-

476,600

(107,497)

-

-

-

-

35,092

92,873

-

92,873

127,965

-

-

-

-

-

(107,497)

185,499

360,000

545,499

$ 438,002

-

$

16,347

-

-

-

-

-

-

16,347

(8,386)

Regional

Railroad

Authority

Regional

Railroad

Authority

Debt Capital

Service Fund Projects Fund

STATEMENT 2

(Continued)

Total

Nonmajor

Governmental

2006

Funds

2005

-

7,961

7,961

-

-

-

-

-

-

-

$

912

-

-

-

15,780

-

515,263

900

-

12,182

545,037

$

836

-

-

-

554,471

-

-

-

-

-

555,307

$ 4,560,645

-

-

-

-

-

-

-

-

-

4,560,645

$ 3,005,882

-

-

-

-

-

-

-

-

-

3,005,882

$ 21,220,591

775,421

39,763,817

283,324

21,382,773

738,771

1,273,630

307,372

1,969,144

880,564

88,595,407

$ 14,715,979

154,907

40,252,342

384,607

18,340,867

744,722

1,365,766

37,378

1,293,394

1,002,194

78,292,156

587,158

-

-

-

-

-

-

587,158

(42,121)

Law

Library

Special

Revenue

Fund

558,277

-

-

-

-

-

-

558,277

(2,970)

-

-

-

-

-

-

-

-

4,560,645

-

-

-

-

-

-

-

-

3,005,882

15,418,334

1,233,908

16,385,988

8,857,427

169,005

8,702,152

22,915,902

73,682,716

14,912,691

20,640,188

1,114,106

16,645,305

9,608,890

100,326

8,552,186

22,494,910

79,155,911

(863,755)

-

-

-

-

(8,386)

22,590

-

22,590

14,204

-

$

-

-

-

-

(42,121)

106,615

-

106,615

(473)

64,021 $

-

-

-

-

(2,970)

858,234

-

858,234

855,264

-

$

-

-

-

-

4,560,645

-

-

-

4,560,645

-

$

-

424,984

-

424,984

3,430,866

-

-

-

3,430,866

-

-

553,362

(425,984)

127,378

15,040,069

41,914,829

360,000

42,274,829

$

10,987

57,325,885

85,000

7,631

(110,000)

(17,369)

(881,124)

42,801,844

-

42,801,844

$

(5,890)

41,914,830

Page 88

SCHEDULE 3

RAMSEY COUNTY, MINNESOTA

COUNTY LIBRARY FUND SPECIAL REVENUE FUND

SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES

BUDGETARY COMPARISONS (NON-GAAP BUDGETARY BASIS)

FOR THE YEAR ENDED DECEMBER 31, 2006

BUDGETED AMOUNTS

ORIGINAL FINAL

REVENUES

Taxes

Intergovernmental

Charges for Services

Fines and Forfeitures

Sales

Rental Income

Investment Earnings

Miscellaneous

Total Revenues

EXPENDITURES

Current:

Culture and Recreation

Total Expenditures

Excess (deficiency) of revenues

over (under) expenditures

OTHER FINANCING SOURCES (USES)

Transfers In

Total Other Financing Sources (Uses)

Net Change in Fund Balances

$ 7,044,849

310,298

1,350

520,000

55,000

157,000

75,000

-

8,163,497

8,163,497

8,163,497

-

-

-

-

$ 6,743,919

727,349

1,350

520,000

55,000

157,000

155,000

24,370

8,383,988

8,465,220

8,465,220

(81,232)

-

-

(81,232)

ACTUAL VARIANCE WITH

AMOUNTS ON FINAL BUDGET

BUDGETARY

BASIS

OVER

(UNDER)

$ 6,810,442

736,642

1,000

540,875

51,960

268,759

155,439

27,404

8,592,521

8,314,588

8,314,588

277,933

81,232

81,232

359,165

$ 66,523

9,293

(350)

20,875

(3,040)

111,759

439

3,034

208,533

(150,632)

(150,632)

359,165

Fund Balances - Beginning

Increase (Decrease) in Reserve

for Inventories

Fund Balances - Ending

3,563,079

-

$ 3,728,808

3,563,079

-

$ 3,647,576

3,563,079

1,538

$ 4,089,511 $

81,232

81,232

440,397

1,538

441,935

-

-

Page 89

SCHEDULE 4

RAMSEY COUNTY, MINNESOTA

SOLID WASTE/RECYCLING SERVICE FEE SPECIAL REVENUE FUND

SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES

IN FUND BALANCE

BUDGETARY COMPARISONS (NON-GAAP BUDGETARY BASIS)

FOR THE YEAR ENDED DECEMBER 31, 2006

REVENUES

Licenses and Permits

Intergovernmental

Charges for Services

Sales

Investment Income

Miscellaneous

Total Revenues

EXPENDITURES

Current:

Sanitation

Total Expenditures

Excess (deficiency) of revenues

over (under) expenditures

BUDGETED AMOUNTS

ORIGINAL FINAL

$ 709,000

1,333,648

15,897,376

7,680

-

88,365

18,036,069

$ 709,000

1,341,660

15,897,376

7,680

-

88,365

18,044,081

ACTUAL ON A

BUDGETARY

BASIS

$ 647,236

1,345,378

17,429,950

8,480

986,679

98,798

20,516,521

$

VARIANCE

WITH FINAL

BUDGET

OVER

(UNDER)

(61,764)

3,718

1,532,574

800

986,679

10,433

2,472,440

21,007,584

21,007,584

(2,971,515)

21,222,096

21,222,096

(3,178,015)

16,664,867

16,664,867

3,851,654

(4,557,229)

(4,557,229)

Fund Balance-Beginning

Fund Balance-Ending $

16,434,800

13,742,164 $

16,434,800

13,535,664 $

16,434,800

20,565,333

7,029,669

-

-

7,029,669

Page 90

RAMSEY COUNTY, MINNESOTA

SAINT PAUL PUBLIC HEALTH JPA SPECIAL REVENUE FUND

SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES

IN FUND BALANCE

BUDGETARY COMPARISONS (NON-GAAP BUDGETARY BASIS)

FOR THE YEAR ENDED DECEMBER 31, 2006

SCHEDULE 5

REVENUES

Taxes

Licenses and Permits

Intergovernmental

Private Grants & Donations

Charges for Services

Investment Earnings

Miscellaneous

Total Revenues

EXPENDITURES

Current:

Health

Total Expenditures

Excess (deficiency) of revenues

over (under) expenditures

OTHER FINANCING SOURCES (USES)

Operating Transfers In

Net Change in Fund Balance

$

BUDGETED AMOUNTS

ORIGINAL FINAL

$ 2,846,547

59,000

4,074,480

-

1,613,233

-

-

8,593,260

2,846,547

59,000

5,078,766

-

1,613,233

16,660

-

9,614,206

8,593,260

8,593,260

-

-

-

9,661,352

9,661,352

(47,146)

47,146

-

ACTUAL ON A

BUDGETARY

BASIS

$ 2,846,547

60,585

4,168,648

4,662

1,613,110

18,031

210,668

8,922,251

6,559,389

6,559,389

2,362,862

47,146

2,410,008

VARIANCE WITH

FINAL BUDGET

OVER

(UNDER)

$ -

1,585

(910,118)

4,662

(123)

1,371

210,668

(691,955)

(3,101,963)

(3,101,963)

2,410,008

Fund Balance - Beginning

Increase (Decrease) in Reserve

for Inventories

Fund Balance - Ending $

3,848,788

1,561,584

-

$

3,848,788

-

1,561,584 $

3,848,788

9,763

3,981,355 $

-

2,410,008

-

-

9,763

2,419,771

Page 91

RAMSEY COUNTY , MINNESOTA

REGIONAL RAILROAD AUTHORITY SPECIAL REVENUE FUND

SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES

IN FUND BALANCES

BUDGETARY COMPARISONS (NON-GAAP BUDGETARY BASIS)

FOR THE YEAR ENDED DECEMBER 31, 2006

SCHEDULE 6

REVENUES

Taxes

Intergovernmental

Investment Earnings

Rental Income

Miscellaneous

Total Revenues

EXPENDITURES

Current:

General Government

Total Expenditures

Excess (deficiency) of revenues

over (under) expenditures

Other Financing Sources (Uses):

Transfers Out

Net Change in Fund Balance

BUDGETED AMOUNTS

ORIGINAL FINAL

$ 3,098,464

-

100,000

59,400

-

3,257,864

$ 3,098,464

-

100,000

59,400

-

3,257,864

3,257,864

3,257,864

-

-

-

3,256,864

3,256,864

1,000

-

1,000

ACTUAL ON A

BUDGETARY

BASIS

$ 2,509,105

849,168

633,216

37,713

2,039

4,031,241

1,843,564

1,843,564

2,187,677

(425,984)

1,761,693

Fund Balance - Beginning

Fund Balance - Ending $

11,881,543

11,726,117

11,881,543

$ 11,727,117 $

11,881,543

13,487,810

VARIANCE WITH

FINAL BUDGET

OVER

(UNDER)

$ (589,359)

849,168

533,216

(21,687)

2,039

773,377

$

(1,413,300)

(1,413,300)

2,186,677

(425,984)

1,760,693

1,760,693

-

-

Page 92

SCHEDULE 7

RAMSEY COUNTY, MINNESOTA

FORFEITED TAX SALE SPECIAL REVENUE FUND

SCHEDULE OF REVENUE, EXPENDITURES, AND CHANGES IN FUND BALANCES

BUDGETARY COMPARISONS (NON-GAAP BUDGETARY BASIS)

FOR THE YEAR ENDED DECEMBER 31, 2006

BUDGETED AMOUNTS

ORIGINAL

REVENUES

Intergovernmental

Charges for Services

Sales

Rental Income

$

27,840

600,000

-

-

Miscellaneous -

Total Revenues 627,840

FINAL

$ -

27,840

600,000

-

-

627,840

EXPENDITURES

Current:

General Government

Total Expenditures

627,840

627,840

Excess (deficiency) of revenues

over (under) expenditures

Adjustment

Fund Balance - Beginning

Increase (Decrease) in Reserve for Inventories

Fund Balance - Ending

-

(59,032)

106,615

-

$ 47,583

627,840

627,840

-

(59,032)

106,615

$

-

47,583

ACTUAL

AMOUNTS ON

BUDGETARY

BASIS

$ 912

15,780

515,263

900

12,182

545,037

$

528,126

528,126

16,911

(59,032)

106,615

(473)

64,021

VARIANCE WITH

FINAL BUDGET

OVER

(UNDER)

$ 912

(12,060)

(84,737)

900

12,182

(82,803)

$

(99,714)

(99,714)

16,911

-

-

(473)

16,438

Page 93

RAMSEY COUNTY , MINNESOTA

REGIONAL RAILROAD AUTHORITY DEBT SERVICE FUND

SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES

IN FUND BALANCES

BUDGETARY COMPARISONS (NON-GAAP BUDGETARY BASIS)

FOR THE YEAR ENDED DECEMBER 31, 2006

SCHEDULE 8

REVENUES

Taxes

Total Revenues

EXPENDITURES

Current:

General Government

Total Expenditures

Excess (deficiency) of revenues

over (under) expenditures

BUDGETED AMOUNTS

ORIGINAL FINAL

$ 4,343,471

4,343,471

$ 4,343,471

4,343,471

ACTUAL ON A

BUDGETARY

BASIS

$ 4,560,645

4,560,645

VARIANCE WITH

FINAL BUDGET

OVER

(UNDER)

$ 217,174

217,174

4,343,471

4,343,471

-

4,343,471

4,343,471

-

-

-

4,560,645

(4,343,471)

(4,343,471)

4,560,645

Fund Balance - Beginning

Fund Balance - Ending $ -

-

$ -

-

$ 4,560,645

-

4,560,645

Page 94

NONMAJOR ENTERPRISE FUNDS

To account for operations that are financed and operated in a manner similar to private business enterprises -- where the intent 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.

Ramsey Nursing Home

– To provide health care services for the physically and mentally handicapped.

Law Enforcement Services

– To provide law enforcement services to certain communities in

Ramsey County beyond the services normally provided or available to all communities within the County.

Page 95

STATEMENT 3

RAMSEY COUNTY, MINNESOTA

COMBINING STATEMENT OF NET ASSETS

NONMAJOR ENTERPRISE FUNDS

DECEMBER 31, 2006

WITH COMPARATIVE TOTALS FOR DECEMBER 31, 2005

Ramsey

Nursing Home

Law

Enforcement

Services 2006

Total

Nonmajor

Enterprise

Funds

2005

ASSETS

Current Assets:

Cash and Cash Equivalents

Petty Cash and Change Funds

Cooperative Investment

Accounts Receivable (Net)

Cooperative Investment Receivable

Due from Other Governments

Prepaid Expenses

Inventories

Total Current Assets

Noncurrent Assets:

Deferred charges

Capital Assets:

Land

Improvements Other Than Buildings

Building

Building Improvements

Equipment

Construction in Progress

Less Accumulated Depreciation

Total Capital Assets (Net of

Accumulated Depreciation)

Total Noncurrent Assets

Total Assets

LIABILITIES

Current Liabilities:

Salaries Payable

Accounts Payable

Interest Payable

Unamortized Bond Discount/Premium

Due to Other Funds

Due to Other Governments

General Obligation Bonds Payable-Current

Vacation and Compensatory Time Payable

Total Current Liabilities

Noncurrent Liabilities:

General Obligation Bonds Payable

Advance from Other Funds

Compensated Absences Payable

Total Noncurrent Liabilities

Total Liabilities

NET ASSETS

Invested in Capital Assets, Net of Related Debt

Restricted for Capital Projects

Unrestricted

Total Net Assets

$

$

774,553

14,000

30,913

382,788

17,244

662,164

-

27,847

1,909,509

$

-

99,200

423,964

4,517,652

1,543,729

906,296

26,000

(5,036,986)

2,479,855

2,479,855

4,389,364

364,780

226,599

-

-

8,646

5,928

-

400,472

1,006,425

439,649

439,649

-

-

1,446,074

2,479,855

-

463,435

2,943,290 $

229,701 $

-

-

-

-

378,912

-

-

608,613

-

695,876

-

(431,859)

-

-

-

-

264,017

264,017

872,630

147,670

6,294

-

-

46,118

289,651

-

304,781

794,514

-

50,000

-

50,000

844,514

264,017

-

(235,901)

28,116 $

1,004,254 $

14,000

30,913

382,788

17,244

1,041,076

-

27,847

2,518,122

-

99,200

423,964

4,517,652

1,543,729

1,602,172

26,000

(5,468,845)

2,743,872

2,743,872

5,261,994

512,450

232,893

-

-

54,764

295,579

-

705,253

1,800,939

-

50,000

439,649

489,649

2,290,588

2,743,872

-

227,534

2,971,406 $

1,747,977

14,000

84,255

314,035

-

681,503

42,225

31,721

2,915,716

12,825

99,200

3,005,855

5,451,158

1,350,099

1,953,905

116,309

(5,794,378)

6,182,148

6,194,973

9,110,689

478,607

274,963

60,711

4,265

271,982

392,340

135,000

665,449

2,283,317

3,050,000

997,400

469,562

4,516,962

6,800,279

3,039,046

46,163

(774,799)

2,310,410

Page 96

RAMSEY COUNTY, MINNESOTA

COMBINING STATEMENT OF REVENUES, EXPENSES AND CHANGES

STATEMENT 4

IN NET ASSETS

NONMAJOR ENTERPRISE FUNDS

FOR THE YEAR ENDED DECEMBER 31, 2006

WITH COMPARATIVE TOTALS FOR THE YEAR ENDED DECEMBER 31, 2005

OPERATING REVENUES:

Charges for Services

Sales

Rental Income

Miscellaneous

Total Operating Revenues

OPERATING EXPENSES:

Personal Services

Other Services and Charges

Supplies

Depreciation

Total Operating Expenses

Operating Income (Loss)

NONOPERATING REVENUES (EXPENSES):

Intergovernmental Revenue

Investment Earnings (Loss)

Amortization of Bond Issuance Costs

Interest Expense

Gain (Loss) on Disposal of Capital Assets

Gain on Sale of Capital Assets

Miscellaneous Revenue

Total Nonoperating Revenues (Expenses)

Income Before Contributions and Transfers

Capital Contributions

Transfers In

Change in Net Assets

Total Net Assets - Beginning

Total Net Assets - Ending

$

$

Ramsey

Nursing Home

11,917,486 $

-

-

32,475

11,949,961

9,397,008

2,032,935

769,218

233,837

12,432,998

(483,037)

33,778

28,701

-

-

(23,188)

-

1,575

40,866

(442,171)

68,018

370,391

(3,762)

2,947,052

2,943,290 $

Law

Enforcement

Services

4,804,138 $

763

-

-

4,804,901

3,897,565

824,636

202,685

126,965

5,051,851

(246,950)

258,997

-

-

-

-

6,207

-

265,204

18,254

-

-

18,254

9,862

28,116 $

2006

Total

Nonmajor

Enterprise

Funds

2005

16,721,624 $

763

-

32,475

16,754,862

13,294,573

2,857,571

971,903

360,802

17,484,849

(729,987)

16,253,341

1,510

52,408

60,175

16,367,434

12,869,883

3,361,771

880,200

480,921

17,592,775

(1,225,341)

292,775

28,701

-

-

(23,188)

6,207

1,575

306,070

(423,917)

68,018

370,391

14,492

2,956,914

2,971,406 $

294,202

101,533

(539)

(146,031)

25,905

18,170

4,725

297,965

(927,376)

328,644

359,391

(239,341)

2,549,751

2,310,410

Page 97

STATEMENT 5

RAMSEY COUNTY, MINNESOTA

COMBINING STATEMENT OF CASH FLOWS

NONMAJOR ENTERPRISE FUNDS

FOR THE YEAR ENDED DECEMBER 31, 2006

WITH COMPARATIVE TOTALS FOR THE YEAR ENDED DECEMBER 31, 2005

Ramsey

Nursing Home

CASH FLOWS FROM OPERATING ACTIVITIES

Receipts from Customers and Users

Payments to Suppliers

Payments to Employees

Payments for Interfund Services Used

Net Cash Provided (Used) for

Operating Activities

CASH FLOWS FROM NONCAPITAL FINANCING ACTIVITIES

Intergovernmental Revenue

Transfers In

Miscellaneous Revenue

Net Cash Provided (Used) for

Noncapital Financing Activities

CASH FLOWS FROM CAPITAL AND RELATED FINANCING ACTIVITIES

Proceeds from the Sale of Capital Assets

Purchases of Capital Assets

Principal Paid on Capital Debt

Interest Paid on Capital Debt

Disposal of Capital Assets

Net Cash Provided (Used) for Capital

and Related Financing Activities

CASH FLOWS FROM INVESTING ACTIVITIES

Proceeds from Sale of Investments

Dividend Received

Gain on Sale of Investment

Net Cash Provided (Used) for

Investing Activities

$ 11,896,472 $

(2,975,115)

(9,372,631)

-

(451,274)

33,778

357,906

1,575

393,259

32,521

32,278

-

-

(38,808)

-

-

-

(38,808)

64,799

Law

Enforcement

Services

4,376,825 $

(1,020,425)

(3,869,156)

-

(512,756)

258,997

-

-

258,997

25,530

(200,893)

-

-

-

(175,363)

-

-

-

-

Net Increase (Decrease) in Cash and

Cash Equivalents

Cash and Cash Equivalents, January 1

Cash and Cash Equivalents, December 31

(32,024)

820,577

788,553

(429,122)

658,823

229,701

2006

Total

Nonmajor

Enterprise

Funds

2005

16,273,297 $ 16,617,742

(3,995,540)

(13,241,787)

-

(4,505,231)

(12,846,794)

(450)

(964,030)

292,775

357,906

1,575

652,256

25,530

(239,701)

-

-

-

(214,171)

32,521

32,278

-

64,799

(734,733)

294,202

357,906

4,725

656,833

39,170

(231,135)

(130,000)

(74,803)

45,245

(351,523)

-

25,067

25,619

50,686

(461,146)

1,479,400

1,018,254

(378,737)

2,140,714

1,761,977

Reconciliation of Operating Income to Net

Cash Provided (Used) by Operating Activities:

Operating Income (Loss)

Adjustments to Reconcile Operating Income to Net

Cash Provided (Used) by Operating Activities:

Depreciation Expense

Noncash Transfers

Provision for Uncollectible Accounts

Changes in Assets and Liabilities:

(Increase) Decrease in Accounts Receivable

(Increase) Decrease in Due from Other Governments

(Increase) Decrease in Prepaid Items

(Increase) Decrease in Inventories

Increase (Decrease) in Salaries Payable

Increase (Decrease) in Accounts Payable

Increase (Decrease) in Due to Other Funds

Increase (Decrease) in Due to Other Governments

Increase (Decrease) in Estimated Payable for Outstanding Claims

Increase (Decrease) in Vacation and

Compensatory Time Payable

Increase (Decrease) in Compensated Absences Payable

Net Cash Provided (Used) by Operating Activities $

(483,037)

233,837

12,485

30,000

(102,828)

19,339

42,225

3,874

14,842

(28,629)

(154,674)

(48,244)

-

38,243

(28,707)

(451,274) $

(246,950)

126,965

-

-

-

(378,912)

-

-

20,911

(10,262)

16,148

(48,154)

-

7,498

-

(512,756) $

(729,987)

360,802

12,485

30,000

(102,828)

(359,573)

42,225

3,874

35,753

(38,891)

(138,526)

(96,398)

-

45,741

(28,707)

(964,030) $

Noncash Investing, Capital and Financing Activities:

Contributions of Capital Assets in the Ramsey Nursing Home Fund amounted to $65,860 and $317,928 in 2006 and 2005 respectively.

The fair value of Ramsey Nursing Home Investment increased by $50,847 in 2005, and decreased by $53,342 in 2006.

Disposal of Capital Assets had a Net Book Value of $23,188 in 2006 and $1,046 in 2005 for the Ramsey Nursing Home.

Transfer In of $50,000 from Capital Projects Funds was used to reduce Due to Other Funds for Ponds at Battle Creek.

(1,225,341)

480,921

1,485

(9,500)

(32,350)

264,478

(42,225)

267

26,772

53,185

(65,569)

69,827

(253,000)

5,622

(9,305)

(734,733)

Page 98

INTERNAL SERVICE FUNDS

To account for the financing of goods or services provided by one department or agency to other departments or agencies of the

County, or other governments, on a cost-reimbursement basis.

Data Processing

– To provide electronic data processing services to county departments and other governmental units.

General County Buildings –

To account for rents received from occupants of several County

Buildings and to pay all expenses incurred in operating and maintaining the building.

Telecommunications

– To account for all expenses incurred in operating the telephone system in the Ramsey County Government Center-West Building, Ramsey County Government Center-

East Building, and City/County Courthouse.

Firearms Range –

To provide a Firearms Range to law enforcement personnel of the County and other local governments.

Page 99

RAMSEY COUNTY, MINNESOTA

COMBINING STATEMENT OF NET ASSETS

INTERNAL SERVICE FUNDS

DECEMBER 31, 2006

WITH COMPARATIVE TOTALS FOR DECEMBER 31, 2005

Data

Processing

General

County

Buildings

ASSETS

Current assets:

Cash and Cash Equivalents

Petty Cash and Change Funds

Accounts Receivable (Net)

Due from Other Funds

Due from Other Governments

Prepaid Items

Inventories

Restricted Cash and Cash Equivalents

Total Current Assets

Noncurrent Assets:

Capital Assets:

Improvements other than buildings

Building Improvements

Equipment

Construction in progress

Less Accumulated Depreciation

Total Capital Assets (Net of

Accumulated Depreciation)

Total Assets

LIABILITIES

Current Liabilities:

Salaries Payable

Accounts Payable

Loan Payable

Due to Other Funds

Due to Other Governments

Vacation and Compensatory Time Payable

Payable from Restricted Assets:

Customer Deposits Payable

Total Current Liabilities

Noncurrent Liabilities:

Loan Payable

Compensated Absences Payable

Total Liabilities

NET ASSETS

Invested in Capital Assets, Net of Related Debt

Unrestricted

Total Net Assets

$ 517,877

75

3,920

817,113

61,954

105,003

7,265

-

1,513,207

137,738

5,326,304

-

-

(5,327,452)

136,590

1,649,797

19,698

7,358,127

380,098

-

(5,513,412)

2,244,511

10,729,822

156,525

42,258

1,987

12,125

326,091

-

538,986

-

421,388

-

960,374

136,590

552,833

$ 689,423

$ 8,342,408

1,386

126,620

13,897

-

-

-

1,000

8,485,311

78,939

489,113

2,339

82,479

18,570

137,182

1,000

809,622

335

205,969

1,015,926

2,244,511

7,469,385

Telecommunications

$ 2,823,019

1,992

79,406

21,853

-

-

-

-

2,926,270

15,957

27,797

2,672

3,028

22,013

-

71,467

-

26,294

-

97,761

719,526

2,828,509

Firearms

Range

300

7,822

11,829

-

-

-

-

41,233

2,867,537

-

-

-

(2,148,011)

719,526

3,645,796

-

-

-

-

-

41,233

-

808

-

29,220

-

38

-

30,066

-

30,066

-

-

11,167

-

$ 11,167

STATEMENT 6

Total Internal

Service Funds

2006 2005

$ 11,704,586

75

7,598

1,030,961

109,533

105,003

7,265

1,000

12,966,021

19,698

7,495,865

8,573,939

-

(12,988,875)

3,100,627

16,066,648

6,973

6,896,681

8,751,358

127,693

(12,347,391)

3,435,314

15,964,361

251,421

559,976

2,339

116,358

33,761

485,286

1,000

1,450,141

335

653,651

2,104,127

3,100,627

10,861,894

$ 11,342,238

75

17,948

947,514

72,060

142,398

5,814

1,000

12,529,047

233,568

1,033,415

4,750

165,836

15,821

427,572

1,000

1,881,962

3,011

583,824

2,468,797

3,435,314

10,060,250

$ 13,495,564

Page 100

RAMSEY COUNTY, MINNESOTA

COMBINING STATEMENT OF REVENUES, EXPENSES AND CHANGES

IN FUND NET ASSETS

INTERNAL SERVICE FUNDS

FOR THE YEAR ENDED DECEMBER 31, 2006

WITH COMPARATIVE TOTALS FOR THE YEAR ENDED DECEMBER 31, 2005

OPERATING REVENUES:

Charges for Services

Sales

Miscellaneous

Total Operating Revenues

OPERATING EXPENSES:

Personal Services

Other Services and Charges

Supplies

Depreciation

Total Operating Expenses

Operating Income (Loss)

NONOPERATING REVENUES (EXPENSES):

Intergovernmental Revenue

Gain (Loss) on Disposal of Capital Assets

Total Nonoperating Revenues (Expenses)

Transfers Out

Change in Net Assets

Total Net Assets - Beginning

Total Net Assets - Ending

STATEMENT 7

Data

Processing

$ 7,312,759

-

848

7,313,607

General

County

Buildings

$ 9,741,958

3,669

166,827

9,912,454

Telecommunications

$ 1,616,788

-

644

1,617,432

Firearms

Range

$ 40,761

1,467

-

42,228

Total Internal

2006

Service Funds

2005

$ 18,712,266

5,136

168,319

18,885,721

$ 18,593,579

2,167

25,946

18,621,692

4,688,761

2,812,305

23,521

1,148

7,525,735

(212,128)

2,464,085

6,003,513

346,964

602,530

9,417,092

495,362

462,187

697,218

18,859

285,098

1,463,362

154,070

-

29,220

8,041

-

37,261

4,967

7,615,033

9,542,256

397,385

888,776

18,443,450

442,271

6,768,025

9,777,302

431,387

888,546

17,865,260

756,432

17,602

805

18,407

5,154

-

5,154

(127)

(193,848)

-

500,516

883,271

$ 689,423

9,213,380

$ 9,713,896

1,252

-

1,252

-

155,322

3,392,713

$ 3,548,035

-

-

-

-

4,967

6,200

$ 11,167

24,008

805

24,813

(127)

466,957

13,495,564

$ 13,962,521

24,132

541

24,673

-

781,105

12,714,459

$ 13,495,564

Page 101

RAMSEY COUNTY, MINNNESOTA

COMBINING STATEMENT OF CASH FLOWS

INTERNAL SERVICE FUNDS

FOR THE YEAR ENDED DECEMBER 31, 2006

WITH COMPARATIVE TOTALS FOR THE YEAR ENDED DECEMBER 31, 2005

STATEMENT 8

Data

Processing

CASH FLOWS FROM OPERATING ACTIVITIES

Receipts from Customers and Users

Receipts from Interfund Services Provided

Payments to Suppliers

Payments to Employees

Payments for Interfund Services Used

Net Cash Provided (Used) for Operating Activities

CASH FLOWS FROM NONCAPITAL FINANCING ACTIVITIES

Intergovernmental Revenue

Transfers Out

Net Cash Provided (Used) for

Noncapital Financing Activities

CASH FLOWS FROM CAPITAL AND RELATED FINANCING ACTIVITIES

Proceeds from the Sale of Capital Assets

Purchases of Capital Assets

Repayment of Loan

Net Cash Provided (Used) for Capital and Related Financing Activities

Net Increase (Decrease) in Cash and Cash Equivalents

Cash and Cash Equivalents, January 1

Cash and Cash Equivalents, December 31

$ 413,316

6,883,472

(2,604,868)

(4,608,184)

(414,616)

(330,880)

$

17,602

(127)

17,475

805

(10,045)

-

(9,240)

(322,645)

840,597

517,952

General

County

Buildings

360,204

9,459,956

(5,600,787)

(2,404,934)

(1,037,791)

776,648

$

5,154

-

5,154

-

(503,569)

(5,087)

(508,656)

273,146

8,070,262

8,343,408

Telecommunications

629,862

1,000,973

(591,895)

(456,521)

(140,119)

442,300

$

1,252

-

1,252

-

(40,475)

-

(40,475)

403,077

2,419,942

2,823,019

Firearms

Range

10,931

16,438

(7,195)

-

(11,404)

8,770

$

-

8,770

-

-

-

12,512

21,282

-

-

-

Total Internal

Service Funds

2006 2005

1,414,313

17,360,839

(8,804,745)

(7,469,639)

(1,603,930)

896,838

$

24,008

(127)

23,881

805

(554,089)

(5,087)

(558,371)

362,348

11,343,313

11,705,661

11,775,872

7,265,382

(9,729,940)

(6,682,057)

(425,779)

2,203,478

24,132

-

24,132

797

(736,998)

(5,240)

(741,441)

1,486,169

9,857,144

11,343,313

Reconciliation of Operating Income to Net

Cash Provided (Used) by Operating Activities:

Operating Income (Loss)

Adjustments to Reconcile Operating Income to Net

Cash Provided (Used) by Operating Activities:

Depreciation Expense

Loan Payable included in Electrical Expense

Changes in Assets and Liabilities:

(Increase) Decrease in Accounts Receivable

(Increase) Decrease in Due From Other Funds

(Increase) Decrease in Due From Other Governments

(Increase) Decrease in Prepaid Items

(Increase) Decrease in Inventories

Increase (Decrease) in Salaries Payable

Increase (Decrease) in Accounts Payable

Increase (Decrease) in Due to Other Funds

Increase (Decrease) in Due to Other Governments

Increase (Decrease) in Vacation and Compensatory Time Payable

Increase (Decrease) in Compensated Absences Payable

Net Cash Provided (Used) by Operating Activities

Non cash Capital and Related Financing Activity:

Data Processing disposed of capital assets with a net book value of zero.

$

(212,128)

1,148

-

(224)

8,771

(25,367)

37,395

(1,451)

10,589

(179,073)

(40,538)

10

34,276

35,712

(330,880) $

495,362

602,530

-

(8,472)

(101,380)

(1,277)

-

-

6,472

(269,670)

(14,501)

14,905

23,055

29,624

776,648 $

154,070

285,098

-

490

15,128

(2,216)

-

-

792

(6,699)

(12,204)

2,967

383

4,491

442,300 $

4,967

-

-

(300)

(5,966)

(8,593)

-

808

17,816

-

-

38

-

-

8,770 $

442,271

888,776

-

(8,506)

(83,447)

(37,453)

37,395

(1,451)

17,853

(454,634)

(49,427)

17,920

57,714

69,827

896,838 $

756,432

888,545

13,001

(11,185)

377,201

53,544

39,295

(95)

1,353

11,499

(20,178)

9,447

51,415

33,204

2,203,478

Page 102

FIDUCIARY FUNDS

To account for assets held by a governmental unit in a trustee capacity or as an agent for individuals, private organizations, and other governmental units.

Private Purpose Trust Funds:

Missing Heirs

– To account for unclaimed funds of heirs who cannot immediately be located.

Lake Owasso Residence Trust

– To account for resident’s assets held by the County.

Ramsey Nursing Home Client Trust

– To account for client assets held by the County.

Social Welfare

– To account for certain Community Human Services client assets held by the County.

Agency Fund:

To account for assets held by a governmental unit as an agent for individuals/private organizations, and other governmental units.

Page 103

STATEMENT 9

RAMSEY COUNTY, MINNESOTA

COMBINING STATEMENT OF FIDUCIARY NET ASSETS

PRIVATE PURPOSE TRUST FUNDS

DECEMBER 31, 2006

WITH COMPARATIVE TOTALS FOR DECEMBER 31, 2005

Missing

Heirs

ASSETS

Cash and Cash Equivalents

Accounts Receivable

Total Assets

LIABILITIES

Custodial Payable

NET ASSETS

Held in Trust for Private Purposes

$ 183,865

-

183,865

$

$ 183,865

-

$

Lake Owasso

Residence

Client Trust

Ramsey

Nursing Home

Client Trust

73,306

773

74,079

$

4,679

69,400 $

11,173

Social

Welfare

-

Total Private

Trust Funds

2006

Purpose

15,852

2005

62,878

-

62,878

$ 2,225,367

-

2,225,367

$ 2,545,416

773

2,546,189

$ 2,529,067

-

2,529,067

7,392

51,705 $ 2,225,367 $ 2,530,337 $ 2,521,675

Page 104

ADDITIONS

Receipts from Clients

Investment Earnings

Total Additions

DEDUCTIONS

Payments to Clients or on

Behalf of Clients

Change in Net Assets

Net Assets - Beginning

Net Assets - Ending

STATEMENT 10

RAMSEY COUNTY, MINNESOTA

COMBINING STATEMENT OF CHANGES IN FIDUCIARY NET ASSETS

PRIVATE PURPOSE TRUST FUNDS

FOR THE YEAR ENDED DECEMBER 31, 2006

WITH COMPARATIVE TOTALS FOR THE YEAR ENDED DECEMBER 31, 2005

Missing

Heirs

Lake Owasso

Residence

Client Trust

Ramsey

Nursing Home

Client Trust

Social

Welfare

Total Private

Purpose

Trust Funds

2006 2005

$ 24,442

-

24,442

$ 107,700

-

107,700

$ 120,886

2,773

123,659

$ 12,551,016

8,531

12,559,547

$

23,446

996

182,869

$ 183,865 $

98,369

9,331

60,069

69,400 $

123,807

(148)

12,561,064

(1,517)

51,853 2,226,884

51,705 $ 2,225,367 $

12,804,044

11,304

12,815,348

$ 12,792,773

4,959

12,797,732

12,806,686

8,662

12,504,297

293,435

2,521,675 2,228,240

2,530,337 $ 2,521,675

Page 105

RAMSEY COUNTY, MINNESOTA

AGENCY FUND

STATEMENT OF CHANGES IN ASSETS AND LIABILITIES

FOR THE YEAR ENDED DECEMBER 31, 2006

STATEMENT 11

Balance

January 1,

2006 Additions Deductions

ASSETS

Cash and Cash Equivalents

Petty Cash and Change Funds

Receivables (Net):

Taxes

Accounts

Due from Other Governments

Advance to Other Governments

Total Assets

$ 32,289,596

50

-

21,310,346

436,240

50,893

54,087,125

$ 716,325,617

-

205

18,911,342

55,120

-

735,292,284

$ 715,475,160

-

-

21,310,346

436,240

-

737,221,746

$

Balance

December 31,

2006

33,140,053

50

205

18,911,342

55,120

50,893

52,157,663

LIABILITIES

Salaries Payable

Custodial Payable

Due to Other Governments

Total Liabilities

9,021

32,824,607

21,253,497

$ 54,087,125 $

6,426

36,374,317

15,797,045

52,177,788 $

9,021

32,844,732

21,253,497

54,107,250 $

6,426

36,354,192

15,797,045

52,157,663

Page 106

OTHER SUPPLEMENTARY INFORMATION

Page 107

Shared Revenue:

State-

Highway Users Tax

Watercraft Registration

Market Value Homestead Credit

Disparity Reduction Aid

County Program Aid

State Aid for Police Pension

911 Telephone Fee

PERA Rate Increase Aid

Total Shared Revenue

Reimbursement for Services:

State-

Minnesota Department of

Attorney General

Human Services

Public Defense Board

Education

Family Service Collaborative

Total Reimbursement for Services

RAMSEY COUNTY, MINNESOTA

SCHEDULE OF INTERGOVERNMENTAL REVENUES

ALL FUND TYPES

FOR THE YEAR ENDED DECEMBER 31, 2006

Special Revenue Funds

General

Fund

County

Library

Solid Waste/

Recycling

Service Fee

Housing and

Redevelopment

Authority

$ 5,374,157

54,809

8,914,542

241,816

16,266,302

1,195,526

250,357

703,490

33,000,999

134,330

45,546,356

-

193,382

301,952

46,176,020

$ -

-

301,721

-

168,646

-

-

21,652

492,019

-

-

-

-

-

-

$ -

-

-

-

-

-

-

3,718

3,718

-

-

-

-

-

-

$ -

-

-

-

-

-

-

-

-

-

-

-

-

Grants:

State-

Minnesota Department of

Education

Public Safety

Environmental Assistance

Health

Natural Resources

Transportation

Corrections

Human Services

Housing Finance

Employment & Economic Development

Trial Courts

Miscellaneous Boards

Total State

Federal-

Department of

Agriculture

Interior

Justice

Transportation

Housing and Urban Development

Labor

Environmental Protection Agency

Emergency Management

Education

Health and Human Services

Homeland Security

Total Federal

Local

Total Grants

Excess Tax Increment

Payments in lieu of taxes

Total Intergovernmental Revenue

4,449

1,476,929

3,034,306

-

12,954

1,517

10,060,926

33,187,693

783,950

-

163,319

-

48,726,043

207,854

-

691,796

156,657

191,417

-

10,707

1,256,573

500

33,691,966

1,208,838

37,416,308

634,880

86,777,231

3,176,147

229,792

$ 169,360,189

-

-

-

-

-

-

-

-

-

-

3,678

3,678

-

-

-

-

-

-

-

-

-

-

-

-

240,193

243,871

-

752

$ 736,642

-

-

-

-

-

-

-

-

-

-

-

1,155,336

-

-

-

-

-

-

-

-

-

-

186,324

1,341,660

-

-

$ 1,345,378

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

1,820,593

-

-

$ 1,821,355

Workforce

Solutions

$ -

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

16,374,635

19,900,842

-

-

$ 19,910,214

Parks and

Recreation

$ -

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

353,753

-

-

$ 353,753

Page 108

State

Funding

For Courts

$ -

-

-

-

-

-

-

6,719,765

-

-

-

-

-

-

-

-

-

-

-

-

-

$ 6,730,879

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

State

Public

Defender

$ -

-

-

-

-

-

-

16,164

16,164

$ -

-

-

-

-

-

-

$ -

-

-

-

-

-

$ -

-

-

-

-

-

-

836

$ -

-

-

-

-

912

912

$ -

-

-

64,530

1,081,366

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

Special Revenue Funds

St. Paul

Public Health

JPA

Regional

Railroad

Authority

Law

Library

Forfeited

Tax Sale

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

SCHEDULE 9

Total

-

-

-

-

-

-

-

-

-

-

$ 3,846,032 $ 4,168,648

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

291,752

10,532

302,284

-

$ 849,168

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

$ 836

-

-

-

-

-

-

-

-

$ 39,763,817

(Continued)

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

SCHEDULE 9

(Continued)

RAMSEY COUNTY, MINNESOTA

SCHEDULE OF INTERGOVERNMENTAL REVENUES

ALL FUND TYPES

FOR THE YEAR ENDED DECEMBER 31, 2006

Debt

Fund

Shared Revenue:

State-

Highway Users Tax

Watercraft Registration

Market Value Homestead Credit

Disparity Reduction Aid

County Program Aid

State Aid for Police Pension

911 Telephone Fee

PERA Rate Increase Aid

Total Shared Revenue

Reimbursement for Services:

State-

Minnesota Department of

Attorney General

Human Services

Public Defense Board

Education

Family Service Collaborative

Total Reimbursement for Services

Grants:

State-

Minnesota Department of

Education

Public Safety

Environmental Assistance

Health

Natural Resources

Transportation

Corrections

Human Services

Housing Finance

Employment & Economic Development

Trial Courts

Miscellaneous boards

Total State

Federal-

Department of

Agriculture

Interior

Justice

Transportation

Housing and Urban Development

Labor

Environmental Protection Agency

Emergency Management

Education

Health and Human Services

Homeland Security

Total Federal

Local

Total Grants

Excess Tax Increment

Payments in lieu of taxes

Total Intergovernmental Revenue

$ 184,242

-

807,304

21,446

14,572

-

-

-

1,027,564

-

10,931

$ 1,038,495

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

Capital

Fund

$ 7,092,414

-

-

-

-

-

-

-

7,092,414

-

200,000

-

2,842,941

-

-

-

-

-

-

5,157,424

8,200,365

746,056

25,435,602

-

-

$ 32,528,016

-

145,268

5,153,032

-

-

-

-

-

-

11,190,881

-

-

16,489,181

-

-

-

-

-

-

Funds

$

258,573

-

54,170

-

-

-

-

-

312,743

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

$ 312,743

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

Internal

Funds

$

-

-

23,508

-

-

-

-

-

23,508

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

$

500

500

24,008

-

-

-

-

-

-

-

-

-

-

-

-

-

-

All Funds

$ 12,650,813

54,809

10,570,036

263,262

16,449,520

1,454,099

250,357

845,698

42,538,594

134,330

45,546,356

3,829,868

193,382

301,952

50,005,888

2,576,630

200,000

740,310

3,291,350

2,705,705

3,314,577

10,707

1,256,573

500

47,798,687

6,366,262

68,261,301

2,183,238

147,064,749

3,176,147

241,890

$ 243,027,268

4,449

1,476,929

1,155,336

3,034,306

158,222

5,154,549

10,060,926

34,290,833

783,950

13,613,948

6,719,765

166,997

76,620,210

Page 109

SCHEDULE 10

RAMSEY COUNTY, MINNESOTA

SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS

FOR THE YEAR ENDED DECEMBER 31, 2006

Federal Grantor

Pass Through Agency

Grant Program Title

Department of Agriculture

Passed Through Minnesota Department of Education:

School Breakfast Program

National School Lunch Program

Passed Through Minnesota Department of Health:

Special Supplemental Nutrition Program for Women, Infants and Children (WIC)

Food Stamp Program - State Administrative Matching Grant

Passed Through Minnesota Department of Agriculture:

Special Supplemental Nutrition Program for Women, Infants and Children (WIC)

Total Department of Agriculture

Department of Housing and Urban Development

Direct

Community Development Block Grants (CDBG)

Supportive Housing Program

Home Investment in Affordable Housing (HOME)

Lead Based Paint Hazard Control Program

Passed Through Minnesota Department of Health:

Lead Based Paint Hazard Control Program

Passed Through Hennepin County:

Lead Based Paint Hazard Control Program

Passed Through City of Minneapolis:

Lead Based Paint Hazard Control Program

Total Department of Housing and Urban Development

Department of the Interior

Passed Through Minnesota Department of Natural Resources:

Outdoor Recreation - Acquisition, Development and Planning

Federal

CFDA

Number

10.553

10.555

10.557

10.561

10.557

14.218

14.235

14.239

14.900

14.900

14.900

14.900

15.916

Department of Justice

Direct

Supervised Visitation, Safe Haven for Children

Juvenile Justice and Delinquency Prevention

Byrne Formula Grant Program

Community Prosecution and Project Safe Neighborhoods

Passed Through Minnesota Department of Public Safety:

Juvenile Accountability Incentive Block Grant (JAIBG)

Crime Victim Assistance

Byrne Formula Grant Program

Byrne Memorial State and Local Law Enforcement

Violence Against Women Formula Grants

Byrne Memorial Justice Assistance Grants

Passed Through City of St. Paul

Local Law Enforcement Block Grant

Byrne Memorial Justice Assistance Grants

Total Department of Justice

16.527

16.540

16.579

16.609

16.523

16.575

16.579

16.588

16.738

16.592

16.738

Department of Labor

Direct

Incentive Grants - Workforce Investment Act Section 503 17.267

Passed Through Minnesota Department of Employment and Economic Development:

Workforce Investment Act (WIA) - Adult Programs

Workforce Investment Act (WIA) - Youth Activities

Workforce Investment Act (WIA) - Dislocated Workers

Disability Employment Policy Development

17.258

17.259

17.260

17.720

Passed Through St. Paul Chamber of Commerce:

Workforce Investment Act (WIA) - Dislocated Workers

Total Department of Labor

17.260

$

Expenditures

81,173

126,681

2,206,095

156,583

6,098

2,576,630

1,514,571

191,417

306,022

340,030

7,447

279,526

66,692

2,705,705

200,000

86,262

48,514

2,200

14,862

216,284

76,459

105,000

36,270

64,432

4,491

85,536

740,310

53,774

993,099

1,186,251

1,019,263

36,917

25,273

3,314,577

$

Passed

Through to

Subrecipients

1,290,111

191,417

262,355

159,159

84,330

-

-

-

-

-

-

-

1,987,372

47,514

98,729

-

-

-

-

-

-

-

-

146,243

361,546

657,039

3,000

-

-

-

-

-

-

1,021,585

(continued)

Page 110

SCHEDULE 10

(continued)

RAMSEY COUNTY, MINNESOTA

SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS

FOR THE YEAR ENDED DECEMBER 31, 2006

Federal Grantor

Pass Through Agency

Grant Program Title

Department of Transportation

Passed Through Minnesota Department of Natural Resources:

Boating Safety Financial Assistance

Passed Through Minnesota Department of Public Safety:

State and Community Highway Safety

Alcohol Traffic Safety and Drunk Driving Prevention

Passed Through Minnesota Department of Transportation:

Highway Planning & Construction

Passed Through Metropolitan Council:

Federal Transit Capital and Operating Asst Formula Grants

Total Department of Transportation

Environmental Protection Agency

Passed Through Minnesota Department of Health

State Indoor Radon Grants

Department of Education

Passed Through Minnesota Department of Health:

Special Education Grants for Infants and Families

Election Assistance Commission

Passed Through Minnesota Secretary of State:

Help America Vote Act Requirements Payments

Department of Health and Human Services

Direct

Centers for Research and Demonstration for Health

Promotion and Disease Prevention

Family Planning Services

Cons Knowledge Development & Application

Refugee and Entrant Assistance Discretionary Grants

Passed Through Minnesota Department of Human Services:

Projects for Assistance in Transition from Homelessness

Promoting Safe and Stable Families

Temporary Assistance for Needy Families (TANF)

Child Support Enforcement Research

Refugee and Entrant Assistance-Targeted Assistance Grants

Community Based Child Abuse Prevention Grants

Child Care Mandatory and Matching Funds

Child Welfare Services-State Grants

Foster Care Title IV-E

Social Services Block Grant

Independent Living

Block Grant - Community Mental Health Services

Block Grant - Prevention/Treatment Substance Abuse

Block Grant - Preventative Health and Health Services

Passed Through Minnesota Department of Health:

Grants & Coop Agreements for Tuberculosis Control

Immunization Research, Demonstration, Public Information and

Education Training and Clinical Skills Improvement Projects

State and Local Childhood Lead Poisoning Prevention and

and Surveillance of Blood Lead Levels in Children

Immunization Grants

Center for Disease Control-Investigations & Technical Assistance

Temporary Assistance for Needy Families (TANF)

Refugee and Entrant Assistance

Breast and Cervical Cancer Control Programs

Sexually Transmitted Disease Control Grant

Maternal and Child Health Services Block Grant

Federal

CFDA

Number

20.005

20.600

20.601

20.205

20.507

66.032

84.181

90.401

93.135

93.217

93.230

93.576

93.150

93.556

93.558

93.564

93.584

93.590

93.596

93.645

93.658

93.667

93.674

93.958

93.959

93.991

93.116

93.185

93.197

93.268

93.283

93.558

93.566

93.919

93.977

93.994

Expenditures

34,000

72,682

23,174

2,869,742

291,752

3,291,350

10,707

500

1,256,573

32,204

317,920

488,903

16,734

170,047

423,951

12,806,244

29,816

48,717

138,269

20,674,289

72,146

3,870,099

4,191,631

127,191

602,591

337,218

4,800

17,000

53,798

49,517

111,166

1,587,571

510,157

67,211

15,871

69,705

877,364

Passed

Through to

Subrecipients

-

-

-

403,677

-

7,729,680

-

58,045

-

20,674,289

62,767

-

-

-

-

-

-

-

-

-

-

-

499,698

-

-

-

-

-

-

-

-

(continued)

-

-

-

-

-

-

Page 111

SCHEDULE 10

(continued)

RAMSEY COUNTY, MINNESOTA

SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS

FOR THE YEAR ENDED DECEMBER 31, 2006

Federal Grantor

Pass Through Agency

Grant Program Title

Department of Health and Human Services (continued):

Passed Through Hennepin County:

Centers for Research and Demonstration for Health

Promotion and Disease Prevention

Ryan White HIV/AIDS Dental Reimbursements

Total Department of Health and Human Services

Department of Homeland Security

Direct

Interoperable Communications Equipment

Passed Through Minnesota Department of Public Safety:

State Domestic Preparedness Equipment Support Program

Urban Areas Security Initiative

Disaster Grants - Public Assistance

Emergency Management Performance Grants

Homeland Security Grant Program

Total Department of Homeland Security

Total Cash Federal Awards

Non-Cash Awards

Department of Agriculture

Food Donation Program

Total Non-Cash Federal Awards

Total Federal Awards

Notes to Schedule of Expenditures of Federal Awards

Federal

CFDA

Number

93.135

93.924

97.055

97.004

97.008

97.036

97.042

97.067

10.550

Expenditures

62,235

24,322

47,798,687

711,235

4,102,868

1,004,345

390,747

130,653

26,414

6,366,262

68,261,301

Passed

Through to

Subrecipients

-

-

29,428,156

-

37,442

-

2,198

-

-

39,640

32,622,996

220,490 -

220,490 -

$ 68,481,791 $ 32,622,996

1. The Schedule of Expenditures of Federal Awards presents the activity of federal award programs expended by

Ramsey County. The County's reporting entity is defined in Note 1 to the financial statements.

2. The expenditures on this schedule are on the modified accrual basis of accounting. The basis used for

CFDA No. 10.550 is the dollar value of vouchers issued.

3. Pass-through grant numbers were not assigned by the pass-through agencies.

Page 112

SECTION III – STATISTICAL SECTION

Page 113

Statistical Section

This part of Ramsey County's comprehensive annual financial report presents detailed information as a context for understanding what the information in the financial statements, note disclosures, and required supplementary information says about the county's overall financial health.

Contents

Financial Trends

These schedules contain trend information to help the reader understand how the county's financial performance and well-being have changed over time.

Revenue Capacity

These schedules contain information to help the reader assess the factors affecting the county's ability to generate its property taxes.

Debt Capacity

These schedules present information to help the reader assess the affordability of the county's current levels of outstanding debt and the county's ability to issue additional debt in the future.

Demographic and Economic Information

These schedules offer demographic and economic indicators to help the reader understand the environment within which the county's financial activities take place and to help make comparisons over time and with other governments.

Operating Information

These schedules contain information about the county's operations and resources to help the reader understand how the county's financial information relates to the services the county provides and the activities it performs.

Page

115

120

123

127

129

Sources:

Unless otherwise noted, the information in these schedules is derived from the comprehensive annual financial reports for the relevant year. The county implemented GASB

Statement 34 in 2002; schedules presenting entity-wide information include information beginning in that year.

Page 114

(accrual basis of accounting)

Governmental activities

Invested in capital assets, net of related debt

Restricted

Unrestricted

Total governmental activities net assets

Business-type activities

Invested in capital assets, net of related debt

Restricted

Unrestricted

Total business-type activities net assets

Primary government

Invested in capital assets, net of related debt

Restricted

Unrestricted

Total primary government net assets

TABLE I

RAMSEY COUNTY, MINNESOTA

NET ASSETS BY COMPONENT

LAST FIVE YEARS

2002 2003

Fiscal Year

2004 2005 2006

$

$

350,568,755

24,145,375

158,307,476

533,021,606

$

$

362,980,947

61,572,424

128,896,754

553,450,125

$

$

331,762,415

106,484,915

144,932,259

583,179,589

$

$

411,727,719

92,804,198

116,795,345

621,327,262

$

$

437,027,997

84,675,877

167,942,820

689,646,694

$

$3,849,605

-

(216,463)

3,633,142 $

$3,730,753

231,962

411,773

4,374,488 $

$3,565,655

66,411

560,087

4,192,153 $

$3,656,566

46,163

285,907

3,988,636 $

$3,520,751

50,657

9,153

3,580,561

$

$

354,418,360

24,145,375

158,091,013

536,654,748

$

$

366,711,700

61,804,386

129,308,527

557,824,613

$

$

335,328,070

106,551,326

145,492,346

587,371,742

$

$

415,384,285

92,850,361

117,081,252

625,315,898

$

$

440,548,748

84,726,534

167,951,973

693,227,255

Note:

Accrual-basis financial information is available back to 2002 only, the year GASB Statement 34 was implemented.

Page 115

TABLE II

RAMSEY COUNTY, MINNESOTA

CHANGES IN NET ASSETS

LAST FIVE YEARS

(accrual basis of accounting)

2002 2003

Fiscal Year

2004 2005 2006

Expenses

Governmental activities:

General government

Public safety

Highways and streets

Sanitation

Health

Human services

Culture and recreation

Conservation of natural resources

Economic development and assistance

Interest

Total governmental activities expenses

Business-type activities:

Lake Owasso Residence

Ponds at Battle Creek

Ramsey Nursing Home

Office of Integrated Managed Care

Law Enforcement Services

Total business-type activities expenses

Total primary government expenses

$ 93,519,244

84,036,106

23,609,628

15,851,946

24,118,961

181,927,405

18,896,677

768,743

25,747,275

7,826,063

476,302,048

$ 88,644,095

81,266,102

19,587,607

14,801,190

24,400,859

176,750,563

18,792,204

776,639

23,877,182

7,297,704

456,194,145

$ 49,037,867

92,552,785

46,613,526

15,737,538

23,278,945

170,372,597

17,181,691

466,403

22,938,963

9,648,967

447,829,282

$ 69,903,388

103,140,189

26,016,187

17,850,477

26,154,048

172,133,597

21,253,410

421,883

22,774,299

9,259,922

468,907,400

$ 83,775,008

93,123,718

35,186,475

17,071,936

26,343,037

176,236,609

18,916,977

413,943

22,931,445

9,433,629

483,432,777

$

7,142,831

488

11,398,215

1,242,876

4,474,209

24,258,619

500,560,667 $

7,692,647

172,661

11,751,327

711,578

4,588,613

24,916,826

481,110,971 $

7,786,233

665,560

12,079,285

-

4,790,221

25,321,299

473,150,581 $

7,700,741

608,504

12,184,848

-

4,945,064

25,439,157

494,346,557 $

8,177,791

701,798

12,435,723

-

5,051,851

26,367,163

509,799,940

Program Revenues

Governmental activities:

Fees, fines, charges and other:

General government

Public safety

Highways and streets

Sanitation

Health

Human services

Culture and recreation

Conservation of natural resources

Economic development and assistance

Operating grants and contributions:

General government

Public safety

Highways and streets

Sanitation

Health

Human services

Culture and recreation

Conservation of natural resources

Economic development and assistance

Capital grants and contributions:

General government

Public safety

Highways and streets

Culture and recreation

Conservation of natural resources

Economic development and assistance

Total governmental activities program

$ 22,131,397

6,534,896

2,863,501

1,173,952

6,171,791

6,976,751

5,364,987

312,688

624,540

$ 15,641,123

6,243,086

2,853,955

13,063,110

7,727,760

5,851,067

5,450,301

181,631

5,054,419

$

26,461,574

19,345,021

-

1,757,002

10,342,476

114,448,042

901,079

118,516

23,194,326

-

-

20,784,558

1,218,077

-

-

270,725,174

19,377,353

17,515,627

59,938

1,312,417

11,937,292

109,200,218

293,722

49,280

19,515,445

901,702

2,444,356

22,337,802

2,282,440

-

905,001

270,199,045

14,140,880

7,023,639

1,388,395

15,817,903

7,988,406

6,727,816

5,709,279

161,547

1,349,226

$ 14,721,943

9,170,315

1,959,189

16,870,909

9,613,494

6,555,896

5,854,429

257,348

3,896,699

$ 25,586,857

8,350,392

2,451,634

19,659,083

8,166,676

7,773,517

6,010,116

302,760

1,666,602

24,122,721

13,617,565

5,201,984

1,438,701

9,318,922

93,048,708

914,335

85,618

20,541,025

19,955

4,730,416

10,218,516

195,432

3,000

1,328,705

245,092,694

23,160,822

12,788,912

3,206,041

1,401,465

11,167,848

93,618,417

337,490

78,061

21,274,245

605,391

5,768,076

17,905,823

1,921,921

26,552

85,000

262,246,286

11,750,858

13,857,784

4,261,815

1,506,761

11,983,024

98,980,847

677,345

77,584

21,595,537

1,256,573

6,195,938

24,239,254

1,603,138

-

-

277,954,095

Page 116

TABLE II

(Continued)

RAMSEY COUNTY, MINNESOTA

CHANGES IN NET ASSETS

LAST FIVE YEARS

(accrual basis of accounting)

Business-type activities:

Fees, fines, charges and other:

Lake Owasso Residence

Ponds at Battle Creek

Ramsey Nursing Home

Office of Integrated Managed Care

Law Enforcement Services

Operating grants and contributions:

Office of Integrated Managed Care

Law Enforcement Services

Capital grants and contributions:

Lake Owasso Residence

Ramsey Nursing Home

Total business-type activities program

Total primary government program revenues

$

2002

7,295,797

-

10,797,696

13,000

4,171,818

1,017,242

-

2003

7,191,307

30,343

11,215,071

193

4,313,810

934,065

258,969

2,175

41,252

23,338,980

294,064,154 $

-

72,823

24,016,581

294,215,626 $

Fiscal Year

2004

7,715,951

460,246

11,484,976

-

4,550,667

-

254,128

2005

7,478,024

430,735

11,323,025

-

4,613,674

-

-

2006

7,630,384

446,901

11,949,961

-

4,804,901

-

258,573

-

25,183

24,491,151

269,583,845

-

328,644

-

68,018

24,174,102 25,158,738

$ 286,420,388 $ 303,112,833

Net (Expense)/Revenue

Governmental activities

Business-type activities

Total primary government net expense

$

$

(205,576,874)

(919,639)

(206,496,513)

$

$

(185,995,100)

(900,245)

(186,895,345)

$

$

(202,736,588)

(830,148)

(203,566,736)

$ (206,661,114) $ (205,478,682)

(1,265,055) (1,208,425)

$ (207,926,169) $ (206,687,107)

General Revenues and Other Charges in Net Assets

Governmental activities:

Property taxes

Grants and contributions not restricted

to specific programs

Investment earnings

Miscellaneous

Lease proceeds

Gain on disposal/sale of capital assets

Transfers

Total governmental activities

Business-type activities:

Grants and contributions not restricted to specific programs

Investment earnings

Miscellaneous

Gain on disposal/sale of capital assets

Transfers

Total business-type activities

Total primary government

$

$

175,132,352

28,641,355

11,579,900

2,146,683

-

302,700

(519,384)

217,283,606

297,460

36,124

-

(4,840)

519,384

848,128

218,131,734

$

$

179,663,516

23,078,325

4,384,058

1,426,526

-

(657,353)

(1,471,453)

206,423,619

$ 188,180,358

23,566,382

5,629,709

1,021,777

13,845,000

97,814

(607,492)

231,733,548

$ 198,458,773 $ 217,391,017

35,262,802

7,673,916

3,493,298

-

478,559

(558,561)

244,808,787

35,053,797

15,581,358

3,032,751

-

3,358,752

(619,561)

273,798,114

79,249

36,725

-

54,248

1,471,453

1,641,675

208,065,294 $

54,292

88,966

-

17,560

607,492

768,310

232,501,858

314,170

137,621

4,725

46,461

54,170

142,025

1,575

(16,981)

558,561

1,061,538

619,561

800,350

$ 245,870,325 $ 274,598,464

Change in Net Assets

Governmental activities

Business-type activities

Total primary government

$

$

11,706,732

(71,511)

11,635,221

$

$

20,428,519

741,430

21,169,949

$

$

28,996,960

(61,838)

28,935,122

$ 38,147,673 $ 68,319,432

(203,517) (408,075)

$ 37,944,156 $ 67,911,357

Note: Accrual-basis financial information is available back to 2002 only, the year GASB Statement 34 was implemented.

Page 117

RAMSEY COUNTY, MINNESOTA

FUND BALANCES OF GOVERNMENTAL FUNDS

LAST FIVE YEARS

(modified accrual basis of accounting)

2002 2003

Fiscal Year

2004 2005 2006

General Fund

Reserved

Unreserved

Designated

Undesignated

Total General Fund

$ 18,380,671 $ 14,276,857 $ 16,600,329 $ 18,271,565 $ 20,037,607

$

97,712,255

25,079,440

141,172,366 $

96,639,755

28,022,435

138,939,047 $

90,228,057

28,704,212

135,532,598 $

105,631,733

29,441,401

153,344,699 $

125,350,133

30,592,387

175,980,127

All Other Governmental Funds

Reserved

Unreserved

Designated

Special revenue funds

Capital project fund

Undesignated

Special revenue funds

Total all other governmental funds

$72,653,648

$22,163,668

-

$

7,768,347

102,585,663 $

$27,834,096

$29,278,356

21,320,176

$81,494,745

$35,689,366

15,932,348

$71,413,941

$35,481,628

12,287,308

$73,519,370

$45,240,562

12,664,938

5,321,751

83,754,379 $

4,325,063

137,441,522 $

4,555,554

123,738,431 $

5,427,871

136,852,741

TABLE III

Note: Due to changes in the county's reporting with GASB Statement 34, fund balance information is available back to 2002 only.

Page 118

RAMSEY COUNTY, MINNESOTA

CHANGES IN FUND BALANCES OF GOVERNMENTAL FUNDS

LAST FIVE YEARS

(modified accrual basis of accounting)

2002 2003

Fiscal Year

2004

Revenues

Property taxes

Licenses and permits

Intergovernmental

Private grants and donations

Charges for services

Fines and forfeitures

Sales

Rental income

Investment earnings

Program recoveries

Miscellaneous

Total revenues

$ 176,442,599

1,128,524

241,787,901

1,097,019

42,762,479

4,124,232

2,649,774

929,341

11,579,900

5,600,073

5,645,316

493,747,158

$ 176,103,167

1,253,422

221,508,422

1,241,181

56,428,484

2,437,722

2,306,044

1,007,022

4,884,456

4,116,529

7,126,047

478,412,496

$ 187,853,804

1,258,037

201,310,013

397,283

61,635,081

733,823

2,457,870

1,346,306

6,254,178

4,020,666

4,748,409

472,015,470

2005

$ 197,333,878

1,410,846

216,905,306

621,000

64,869,125

761,722

2,804,900

1,387,051

9,187,327

3,948,060

7,104,859

506,334,074

Expenditures

General government

Public safety

Highways and streets

Sanitation

Health

Human services

Culture and recreation

Conservation of natural resources

Economic development and assistance

Capital outlay

Debt service

Bond issuance costs

Principal

Interest

Total expenditures

Excess of revenues over (under) expenditures

87,599,504

81,910,462

14,054,555

15,850,612

24,993,929

185,217,289

16,743,482

828,136

25,678,477

63,166,225

81,731,833

80,891,130

15,023,259

14,778,330

25,702,871

178,278,504

16,548,538

775,940

23,634,515

65,318,576

1,079,357

43,829,429

6,541,233

567,492,690

(73,745,532)

229,302

15,496,354

7,418,382

525,827,534

- (47,415,038)

79,591,902

86,399,635

14,087,001

15,742,726

24,447,734

173,313,709

16,140,176

458,455

23,122,428

43,153,982

363,672

11,517,541

8,326,082

496,665,043

(24,649,573)

88,857,578

89,586,294

14,321,647

17,852,048

26,459,940

174,403,870

17,452,152

438,555

22,734,910

38,959,892

134,111

11,913,241

9,660,213

512,774,451

(6,440,377)

Other Financing Sources (Uses):

Xcel Energy Loan Proceeds

Proceeds from bonds

Proceeds from loan

Discount/premium on bonds

Sale of capital assets

Redemption of refunded bonds

Transfers in

Transfers out

Total other financing sources (uses)

Net change in fund balances

-

80,290,000

4,682,875

1,146,128

900,000

-

3,024,157

(3,542,913)

86,500,247

$ 12,754,715

-

27,015,000

-

1,007,203

14,400

-

9,606,712

(11,263,221)

26,380,094

$ (21,034,944)

-

54,620,000

-

1,770,673

13,845,000

(2,345,000)

2,118,199

(2,725,691)

67,283,181

$ 42,633,608

-

17,575,000

-

1,057,776

756,306

(10,505,000)

226,989

(805,676)

8,305,395

$ 1,865,018

Debt service as a percentage of noncapital expenditures

10.20% 5.03% 4.46% 4.58%

Note: Due to changes in the county's reporting with GASB Statement 34, fund balance information is available from 2002.

Page 119

2006

$ 216,674,650

1,394,880

242,690,517

422,816

62,043,508

745,971

2,850,049

1,658,210

17,560,179

3,790,928

5,529,616

555,361,324

87,579,800

93,978,150

14,898,949

17,027,293

27,620,672

178,479,898

17,816,393

406,016

22,915,902

50,134,804

70,093

11,835,252

9,373,553

532,136,775

23,224,549

76,940

6,750,000

-

31,046

6,000,000

-

2,331,539

(2,950,973)

12,238,552

$ 35,463,101

4.41%

TABLE IV

Table V

RAMSEY COUNTY, MINNESOTA

NET TAX CAPACITY AND MARKET VALUE OF PROPERTY

LAST TEN FISCAL YEARS

REAL ESTATE

PERSONAL PROPERTY NET LESS TOTAL PERCENT OF

PAYABLE TAXABLE TAXABLE TAXABLE

TAXABLE

FISCAL

COMMERCIAL

NET TAX MARKET DISPARITY NET CAPTURED NET TAX

MARKET MARKET

PERIOD RESIDENTIAL

1997

1998

1999

2000

2001

2002

2003

2004

2005

2006

2007

INDUSTRIAL

CAPACITY VALUE CAPACITY VALUE (1)

$ 205,093,044 $ 145,545,918 $ 350,638,962 $ 16,895,944,100 $ 17,947,551 $ 394,259,500 $ 24,566,318 $

203,910,634

203,149,844

215,146,749

239,458,505

210,627,086

232,709,558

260,973,656

305,043,385

343,211,827

382,683,298

130,984,058

130,019,165

142,295,833

166,287,124

106,947,310

121,254,997

129,435,303

133,723,605

146,572,708

164,138,472

334,894,692

333,169,009

357,442,582

405,745,629

317,574,396

353,964,555

390,408,959

438,766,990

489,784,535

546,821,770

17,849,816,194

19,178,518,010

20,705,655,394

22,946,288,200

25,264,935,700

28,452,378,400

31,879,341,300

36,273,669,900

40,782,233,700

45,462,936,100

15,819,056

13,988,644

14,179,694

13,809,251

8,437,837

8,614,622

8,929,442

9,351,087

9,166,212

9,300,648

402,981,500

405,934,600

422,659,400

412,474,200

425,801,700

436,524,200

450,608,900

471,470,300

462,162,600

468,551,900

25,592,339

24,589,335

25,188,986

24,968,205

15,476,414

18,141,924

14,929,192

13,244,590

12,982,384

12,882,615

TAX CAPACITY

27,019,845 $

26,463,486

27,809,167

32,264,176

39,704,914

25,517,872

27,493,190

30,443,069

31,946,107

33,549,332

40,581,499

CAPACITY (2) VALUE

366,132,986 $ 17,290,203,600

349,842,601

343,937,821

364,547,086

404,818,171

315,970,775

353,227,911

383,824,524

429,416,560

478,383,799

528,423,534

18,252,797,694

19,584,452,610

21,128,314,794

23,358,762,400

25,690,737,400

28,888,902,600

32,329,950,200

36,745,140,200

41,244,396,300

45,931,488,000

VALUE

2.12%

1.92%

1.76%

1.73%

1.73%

1.23%

1.22%

1.19%

1.17%

1.16%

1.15%

(1) Fiscal Disparity Net Tax Capacity is the increase in the tax base distributed to Ramsey County by the Other metropolitan counties pursuant to M.S. Chapter

473.F - Metropolitan Revenue distribution. There are no provisions in the law for calculating a market value for the Fiscal Disparity Net Tax Capacity.

(2) All taxable property in Minnesota is listed annually and reappraised at least once every four years with reference to its value on January 2 of that year. Property is currently appraised at "Market Value," defined as the usual selling price of the property which would be obtained at private sale and not at a forced or auction sale. Statutory percentages are then applied to this value to determine a property's "Taxable Net Tax Capacity," upon which taxes are levied, extended, and collected. The total net tax capacity is reduced by the amount of the tax increment financing captured net tax capacity. unaudited

Page 120

RAMSEY COUNTY, MINNESOTA

PROPERTY TAX RATES AND TAX LEVIES

LAST TEN FISCAL YEARS

1996

1997

1998

1999

2000

2001

2002

2003

2004

2005

2006

GENERAL FUND

LEVY PAYABLE GENERAL HUMAN

YEAR

1996

1997

1998

1999

2000

2001

2002

2003

2004

2005

2006

GENERAL

DEBT

YEAR SERVICES SERVICES SERVICE

TAX RATE AS A PERCENTAGE OF NET TAX CAPACITY (3)

1997

1998

1999

22.087

22.723

22.405

15.382

16.343

17.170

3.071

3.270

3.610

2000

2001

2002

2003

2004

2005

2006

2007

22.103

20.651

27.592

27.734

27.078

25.636

25.541

24.454

15.180

14.472

18.510

18.250

17.789

16.156

14.465

14.294

3.712

3.596

4.647

4.302

4.572

4.056

3.548

3.219

1997

1998

1999

2000

2001

2002

2003

2004

2005

2006

2007

TAX LEVIES

87,163,093

87,229,311

85,503,325

90,186,859

92,781,098

99,131,050

103,504,290

104,154,621

111,196,210

122,936,213

129,778,535

60,702,577

62,737,794

65,525,453

61,903,210

65,015,640

66,502,260

68,110,222

68,422,784

70,077,008

69,623,923

75,859,525

12,118,844

12,552,196

12,454,087

13,457,145

14,428,727

15,090,354

15,084,238

17,587,559

17,591,732

17,077,462

17,080,720

TOTAL

GENERAL

COUNTY

40.540

42.336

43.185

40.995

38.719

50.749

50.286

49.439

45.848

43.554

41.967

159,984,514

162,519,301

163,482,865

165,547,214

172,225,465

180,723,664

186,698,750

190,164,964

198,864,950

209,637,598

222,718,780

(1)

(2)

(3)

(4)

Tax Levy on suburban property only.

Tax Levy on property in the watershed district only.

Tax rates may be lower in certain tax areas due to Disparity Reduction Aid paid by the state to governmental units in certain state determined tax areas.

To make comparable to prior year levies, amount for HACA aid has been added to

County's certified levy.

Unaudited

COUNTY

LIBRARY

REVENUE

(1)

2.876

3.048

3.089

3.133

2.889

3.899

3.732

3.198

3.025

2.819

2.746

5,742,586

5,994,954

6,149,168

6,465,154

6,727,469

7,056,979

7,384,610

6,616,255

6,918,441

7,184,837

7,569,452

COUNTY

VALLEY

BRANCH

LIBRARY

DEBT

WATERSHED

DEBT

(1)

0.810

0.862

0.747

0.711

0.558

0.718

0.585

0.498

0.337

0.250

0.230

(2)

0.931

0.929

0.821

0.781

0.719

-

-

-

-

-

-

1,622,968

1,704,855

1,512,655

1,499,958

1,349,649

1,352,694

1,222,757

1,029,947

771,317

637,049

633,671

10,044

8,850

8,124

7,781

16,885

-

-

-

-

-

-

METRO

WATERSHED

CAPITAL

IMPROVEMENTS

(2)

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

TABLE VI

TOTAL

45.157

47.175

47.842

45.620

42.885

55.366

54.603

53.135

49.210

46.623

44.943

167,360,112

170,227,960

171,152,812

173,520,107

180,319,468

189,133,337

195,306,117

197,811,166

206,554,708

217,459,485

230,921,903

Page 121

Fiscal

Year

1997

1998

1999

2000

2001

2002

2003

2004

2005

2006

Source: County Department of Records and Revenue

1) Payments made by the State for Property Tax relief.

TABLE VII

RAMSEY COUNTY, MINNESOTA

PROPERTY TAX LEVIES AND COLLECTIONS

LAST TEN FISCAL YEARS

Taxes Levied for the Fiscal

Year (Original

Levy)

Property Tax Taxes Levied on

Credits (1) Taxpayer Adjustments

Total Adjusted

Levy

$ 159,984,513

162,519,301

163,482,865

165,547,214

180,304,183

189,146,194

195,304,680

197,811,635

206,554,660

217,459,484

$ 12,253,359

12,279,654

12,333,535

14,341,142

14,925,219

27,524,379

22,773,089

12,743,098

11,636,585

10,143,743

$ 147,731,154

150,239,647

151,149,330

151,206,072

165,378,964

161,621,815

172,531,591

185,068,537

194,918,075

207,315,741

$ 572,772

346,917

484,252

250,821

622,522

249,906

970,483

1,500,388

1,128,554

797,442

Collected within the

Fiscal Year of the Levy

Amount

$ 147,158,382

149,892,730

150,665,078

150,955,251

164,756,442

161,371,909

171,561,108

183,568,149

193,789,521

206,518,299

$ 145,281,635

148,330,593

148,936,175

149,128,001

162,538,628

159,790,921

169,910,507

181,440,412

191,406,457

203,455,200

Percentage of Original

Levy on

Taxpayer

Collections in

Subsequent

Years

Total Collections to Date

Amount

98.34%

98.73%

98.54%

98.63%

98.28%

98.87%

98.48%

98.04%

98.20%

98.14%

$ 1,370,556

1,092,673

1,111,369

1,370,592

1,324,893

543,962

(215,095)

295,954

1,006,322

-

$ 146,652,191

149,423,266

150,047,544

150,498,593

163,863,521

160,334,883

169,695,412

181,736,366

192,412,779

203,455,200

Percentage of

Adjusted Levy

99.66%

99.69%

99.59%

99.70%

99.46%

99.36%

98.91%

99.00%

99.29%

98.52%

Unaudited

Page 122

TABLE VIII

RAMSEY COUNTY, MINNESOTA

RATIO OF NET GENERAL OUTSTANDING DEBT BY TYPE

TO ASSESSED VALUE, NET BONDED DEBT PER CAPITA AND PERSONAL INCOME

LAST TEN FISCAL YEARS

YEAR

GOVERNMENTAL ACTIVITIES

GENERAL PUBLIC

OBLIGATION FACILITY LEASE CAPITAL

BONDS REV. BONDS LEASES

1997

1998

1999

2000

2001

2002

2003

2004

2005

2006

$ 186,703,248

169,711,357

121,708,263

121,164,678

120,061,718

147,453,680

159,002,000

199,827,000

195,507,000

190,962,000

$ -

-

-

-

-

13,845,000

13,845,000

13,845,000

13,375,000

12,895,000

$ 136,367

72,623

4,114

-

-

-

244,089

201,570

156,111

107,512

BUSINESS-TYPE

ACTIVITIES

GENERAL

OBLIGATION

BONDS

TOTAL

PRIMARY

GOVERNMENT

LESS

DEBT SERVICE

FUNDS

$ -

-

-

4,045,000

4,045,000

7,595,000

7,345,000

7,075,000

9,725,000

9,430,000

$ 186,839,615

169,783,980

121,712,377

125,209,678

124,106,718

168,893,680

180,436,089

220,948,570

218,763,111

213,394,512

$ 78,092,406

70,984,886

19,222,151

17,422,401

12,721,534

13,662,884

17,007,495

30,310,653

35,744,378

36,513,877

NET

BONDED DEBT

$ 108,747,209

98,799,094

102,490,226

107,787,277

111,385,184

155,230,796

163,428,594

190,637,917

183,018,733

176,880,635

NET TAX

CAPACITY

PERCENT OF NET NET PERCENTAGE

BONDED DEBT TO BONDED DEBT OF PERSONAL

TAXABLE VALUE PER CAPITA INCOME

$ 349,842,601

343,937,821

364,547,086

444,323,085

352,321,925

380,721,101

414,267,593

461,362,667

429,416,560

478,383,799

31.08%

28.73%

28.11%

24.26%

31.61%

40.77%

39.45%

41.32%

42.62%

36.97%

$ 218.62

198.36

205.84

210.92

217.35

301.57

317.17

369.88

355.03

342.79

0.70%

0.60%

0.60%

0.61%

0.62%

0.85%

0.86%

1.00%

0.96%

0.90%

Unaudited

Page 123

RAMSEY COUNTY, MINNESOTA

RATIOS OF GENERAL BONDED DEBT OUTSTANDING

LAST TEN FISCAL YEARS

YEAR

1997

1998

1999

2000

2001

2002

2003

2004

2005

2006

$

GENERAL

OBLIGATION

BONDS

186,703,248

169,711,357

121,708,263

125,209,678

124,106,718

155,048,680

166,347,000

206,902,000

205,232,000

200,392,000

LESS

DEBT SERVICE

FUNDS

$ 78,092,406

70,984,886

19,222,151

17,422,401

12,721,534

13,662,884

17,007,495

30,310,653

35,744,378

36,513,877

$

TOTAL

108,610,842

98,726,471

102,486,112

107,787,277

111,385,184

141,385,796

149,339,505

176,591,347

169,487,622

163,878,123

PERCENTAGE

OF PERSONAL

INCOME

0.70%

0.60%

0.60%

0.61%

0.62%

0.78%

0.81%

0.90%

0.84%

0.81%

PERCENTAGE

OF NET TAX

CAPACITY

31.05%

28.70%

28.11%

24.26%

31.61%

37.14%

36.05%

38.28%

39.47%

34.26%

NET

BONDED DEBT

PER CAPITA

$ 218.35

198.21

205.83

210.92

217.35

274.67

289.83

342.62

328.78

317.59

TABLE IX

Unaudited

Page 124

RAMSEY COUNTY, MINNESOTA

DIRECT AND OVERLAPPING GOVERNMENTAL ACTIVITIES DEBT

AS OF DECEMBER 31, 2006

TABLE X

Government Unit

Debt repaid with property taxes

City of White Bear Lake

City of Spring Lake Park

City of St. Anthony

City of Blaine

School District #624

School District #622

School District #282

North Metro Intermediate School District #916

Metro Council

Ramsey-Washington Metro Watershed District

City of St. Paul

City of Maplewood

City of Mounds View

City of New Brighton

City of North St. Paul

City of Roseville

City of Shoreview

City of Vadnais Heights

Town of White Bear

School District #621

School District #623

School District #625

Port Authority

Other debt

Ramsey County Capital Leases

Ramsey County Public Facility Revenue Bonds

Subtotal, overlapping debt

Ramsey County Direct Debt

Total direct and overlapping debt

Debt

Outstanding*

$ 1,895,000

8,180,000

3,775,000

13,050,000

72,235,000

112,935,000

3,000,000

1,055,000

175,350,000

927,011

111,720,000

11,550,000

1,496,880

8,280,000

5,455,000

9,000,000

5,370,000

2,546,000

2,380,000

128,373,495

39,175,000

343,847,152

13,470,000

107,511

12,895,000

181,432,000

Estimated

Percentage

Application **

100.0%

100.0%

100.0%

Estimated

Share of

Direct and

Overlapping

Debt

43.0%

15.8%

100.0%

100.0%

100.0%

100.0%

100.0%

100.0%

100.0%

100.0%

100.0%

100.0%

100.0%

100.0%

100.0%

100.0%

98.4%

2.4%

26.2%

1.0%

81.9%

54.6%

37.9%

$ 1,864,680

196,320

989,050

130,500

59,160,466

61,662,510

1,137,000

453,650

27,705,300

927,011

111,720,000

11,550,000

1,496,880

8,280,000

5,455,000

9,000,000

5,370,000

2,546,000

2,380,000

128,373,495

39,175,000

343,847,152

13,470,000

107,511

12,895,000

849,892,525

181,432,000

$1,031,324,525

* Debt Outstanding - That portion of the debt which is financed by tax levies.

** Determined by ratio of net tax capacity of property subject to taxation in overlapping unit

to net tax capacity of property subject to taxation in reporting unit.

Unaudited

Page 125

RAMSEY COUNTY, MINNESOTA

LEGAL DEBT MARGIN INFORMATION

LAST TEN FISCAL YEARS

TABLE XI

Legal Debt Margin Calculation for Fiscal Year 2006

Assessed value

$ 41,244,396,300

Debt Limit ( 2% of assessed value)

Debt applicable to limit:

General obligation bonds

Less: Amount set aside for

repayment of general obligation bonds

824,887,926

200,392,000

(36,513,877)

Total net debt applicable to limit

163,878,123

Legal debt margin

$ 661,009,803

1997 1998 1999 2000 2001 2002

Debt limit

Total net debt applicable

to limit

Legal debt margin

$ 365,055,954

108,154,422

$ 391,689,052

98,379,865

$ 422,566,296

102,121,971

$ 467,600,850

106,916,529

$ 507,175,248

111,213,520

$ 513,814,712

155,230,796

$ 256,901,532 $ 293,309,187 $ 320,444,325 $ 360,684,321 $ 395,961,728 $ 358,583,916

2003

$ 414,593,547

2004

$ 577,778,052

163,184,505

$ 646,599,044

176,591,347

$ 470,007,697

2005 2006

$ 734,902,804

169,487,622

$ 824,887,926

163,878,123

$ 565,415,182 $ 661,009,803

Note: Limit on debt - Minnesota Statutes, Section 475.53, Subdivision 1 - "Except as otherwise provided -- no municipality, --, shall incur

or be subject to a net debt in excess of 2 percent of the market value of taxable property in the municipality."

Unaudited

Page 126

Taxpayer Type of Business

TABLE XII

RAMSEY COUNTY, MINNESOTA

PRINCIPAL PROPERTY TAXPAYERS

CURRENT YEAR AND NINE YEAR'S AGO

2006

Taxable

Net Tax

Capacity Rank

Percentage of

Total Taxable

Net Tax

Capacity

1997

Taxable

Percentage of

Total Taxable

Net Tax Net Tax

Capacity Rank

Capacity

NorthernStates Power

(Xcel Energy)

Utility

3M

Compass Retail Inc

Corporate Headquarters

/Manufacturing

Real Estate Investing

(Rosedale)

CSM Corporation & Investors

Property Management/ Real

Estate Investing

(Commercial/ Office/ Hotel/

Townhome)

Minnesota Mutual Life Insurance Insurance

Guidant(Cardiac Pacemakers Inc) Medical Manufacturing

Target Corporation

Maplewood Mall Associates LP

Retail

Real Estate Investing

(Maplewood Mall)

US Bank Corp Prop & US Bancorp Corp Office Building &

Banking

Heritage Property Investment Trust

Inc. (Bradley Operating LP)

Real Estate Investing

Mar & others)

(Har-

Insurance/Real Estate Equitable Life Assurance Society

St Paul Fire and Marine Ins Co

(St Paul Travelers)

Deluxe Corporation

Insurance

Printing Company

$ 7,808,804

5,677,654

2,187,100

1,820,606

1,731,034

1,699,250

1,648,414

1,529,250

1,545,153

1,565,736

Ford Motor Corporation

Space Center Enterprises

Bradley Real Estate Trust

Truck Manufacturing

Warehousing

Real Estate Development

1

2

3

4

5

6

7

8

9

10

1.6 % $ 12,917,961 1

1.1 %

0.4 %

0.4 %

0.4 %

0.3 %

0.3 %

0.3 %

0.3 %

0.3 %

9,574,626 2

1,786,466 6

2,529,426 4

3,318,050 3

1,939,921 5

1,542,624 7

1,169,244

1,113,149

8

9

1,011,546 10

3.5 %

2.6 %

0.5 %

0.7 %

0.9 %

0.5 %

0.4 %

0.3 %

0.3 %

0.3 %

Source: Ramsey County Department of Property Records and Revenue

Unaudited

Page 127

Year

2001

2002

2003

2004

1997

1998

1999

2000

2005

2006

TABLE XIII

Population

RAMSEY COUNTY, MINNESOTA

DEMOGRAPHIC AND ECONOMIC STATISTICS

LAST TEN FISCAL YEARS

a

Personal

Income

(millions of dollars) b

Per Capita

Personal

Income

b

Public

School

Enrollment

(K-12)

c

497,423

498,080

497,919

511,035

512,462

514,748

515,274

515,411

515,258

*

$

$

$

$

$

$

$

$

$

15,493

16,368

17,108

17,682

18,058

18,173

18,487

19,641

*

20,232

31,147

32,863

34,360

34,601

35,237

35,304

36,654

39,369

40,883

*

85,656

86,820

88,031

87,814

87,128

86,442

84,709

83,916

82,843

84,039

Annual Average

Unemployment

Rate

d

3.3%

4.2%

4.9%

4.8%

2.7%

2.1%

2.3%

2.9%

4.0%

3.8%

* - Figure for this period is not yet available. a

Source for 2000 is U.S. Census Bureau; all other years are estimates from the Metropolitan Council. b

U.S. Department of Commerce, Bureau of Economic Analysis. c

State Department of Education. d

Minnesota Department of Economic Security, Research and Planning.

Unaudited

Page 128

RAMSEY COUNTY, MINNESOTA

PRINICIPAL EMPLOYERS

CURRENT YEAR AND NINE YEAR'S AGO

Taxpayer

U.S. Bank N.A.

State of Minnesota

University of Minnesota

3M Company

Target Corporation

Health East

Indep. School District #625

Ramsey County

United/Children's Hospital

Regions Hospital

City of St Paul

St. Paul Companies

Approximate

Number of

Employees

Fiscal Year 2006

Rank

Percentage of

Total County

Employment

4,379

4,500

4,000

-

-

154,326

51,000 a

35,750

16,300 b

14,500

11,400 c

6,700

5,797

5

6

7

3

4

1

2

10

-

8

9

a: Employment figure nationwide headquarter in St. Paul b: Includes Minneapolis campus c: Includes entire Twin Cities area

Source: Minnesota Department of Employment and Economic Security.

19.18%

13.44%

6.13%

5.45%

4.29%

2.52%

2.18%

1.65%

1.69%

1.50%

-

-

58.34%

Unaudited

County's Official Statement

Approximate

Number of

Employees

Fiscal Year 1997

Rank

Percentage of

Total County

Employment

-

34,472

3,997

13,662

-

3,469

5,300

-

7

3

5

2

-

1

-

12.59%

1.46%

4.99%

-

1.27%

1.93%

3,890

4,190

3,000

3,343

3,300

78,623

10

8

6

4

9

1.42%

1.53%

1.10%

-

1.20%

27.49%

Page 129

TABLE XIV

TABLE XV

RAMSEY COUNTY, MINNESOTA

INSURANCE IN FORCE

DECEMBER 31, 2006

COMPANY NAME

St. Paul/Travelers

Travelers Insurance

Company

POLICY NUMBER POLICY PERIOD COVERAGE-DEPARTMENTS POLICY LIMIT

KTK-CMB-294T324-4-06 9/22/06-9/22/07

103916124 9/22/06-9/22/07

COUNTY

Property

Fire & Extended Coverage

Boiler & Machinery

Vehicles & Mobile Equipment

Commercial Crime including

Public Employee Dishonesty coverage

All Risk, Full Replacement,

$100,000 deductible

B&M Perils

$500,000,000 limit

$3,000,000

$50,000 deductible

WCRA 40014 1/1/06-1/1/07 Reinsurance -

Workers Compensation

Statutory, covers claims over $1,560,000

Berkley WC22-04-109107-05 1/1/06-1/1/07

WORKFORCE SOLUTIONS

Workers' Compensation Statutory, covers claims over $1,560,000

MN Joint

Underwriters Assn.

Berkley

National Indemnity

Company of America

The Medical

Protective Company

The Medical

Protective Company

The Medical

Protective Company

20041

7/1/06-7/1/07

WC22-04-109107-05 1/1/06-1/1/07

LAKE OWASSO

General & Professional Liability

Workers' Compensation

$1,000,000/occurrence

$3,000,000 aggregate

$5,000 deductible

Statutory, covers claims over $1,560,000

75APN389887

679766

675823

709326

1/1/06-1/1/07

7/1/06-7/1/07

7/1/06-7/1/07

7/1/06-7/1/07

Automobile

$1,000,000

$500.00 deductible for

Collision &

Comprehensive.

MEDICAL EXAMINER

Professional Liability

Kelly Mills, MD

$1,000,000/occurrence

$3,000,000 aggregate

Professional Liability

Michael McGee, MD

$1,000,000/occurrence

$3,000,000 aggregate

Professional Liability

Victor V. Froloff

$1,000,000/occurrence

$3,000,000 aggregate

(Continued)

Unaudited

Page 130

TABLE XV

(Continued)

RAMSEY COUNTY, MINNESOTA

INSURANCE IN FORCE

DECEMBER 31, 2006

COMPANY NAME

CNA Surety/Western

Surety Co.

POLICY NUMBER POLICY PERIOD CC POLICY LIMIT

0601 69042089 9/15/06-9/15/07

NURSING HOME

Patient's Bond $100,000

MCIT WC245006 1/1/06-1/1/07

RESOURCE RECOVERY

Workers' Compensation Statutory, covers claims over $1,560,000

MCIT PC245006

MN Joint Underwriting

Association

MN Joint Underwriting

Association

40015

J04-0016

1/1/06-1/1/07 Package Liability $1,000,000/occurrence

$300,000/person

7/1/06-7/1/07

REGIONAL RAIL

Directors & Officers $1,000,000/occurrence

7/1/06-7/1/07 General Liability $1,000,000/occurrence

$250.00 deductible

Unaudited

Page 131

TABLE XVI

RAMSEY COUNTY, MINNESOTA

FULL-TIME-EQUIVALENT COUNTY EMPLOYEES BY FUNCTION/PROGRAM

LAST TEN FISCAL YEARS

Function/Program

General government

Public safety

Highways and streets

Sanitation

Health

Human services

Culture and recreation

Conservation of natural resources

Economic development and assistance

Total

1997

Source: County Budgeting and Accounting Office.

1998

Full-time Equivalent Employees as of December 31

1999 2000 2001 2002 2003 2004 2005 2006

870.21 890.57 893.03 898.43 896.73 902.03 896.08 709.88 709.08 719.08

811.74 835.74 850.74 919.74 925.74 928.24 952.99 956.99 959.49 1,069.49

151.78 153.78 150.13 144.13 132.13 131.13 131.13 123.13 122.18 122.18

-

141.92 260.82 264.68 269.48 259.88 273.76 288.76 273.83 291.53 292.73

1,206.94 1,215.71 1,226.21 1,236.71 1,224.96 1,264.26 1,299.74 1,251.35 1,274.09 1,252.09

199.39 201.79 200.79 200.07 199.07 201.06 204.36 194.66 196.91 193.61

4.90

43.40

4.90

43.40

4.90

43.40

4.90

45.40

4.90

74.40

6.25

79.40

3.90

76.20

3.90

78.40

4.90

89.40

4.90

89.40

3,430.28 3,606.71 3,633.88 3,718.86 3,717.81 3,786.13 3,853.16 3,592.14 3,647.58 3,743.48

Unaudited

Page 132

TABLE XVII

RAMSEY COUNTY, MINNESOTA

OPERATING INDICATORS BY FUNCTION

LAST TEN FISCAL YEARS

Function/Program 1997 1998 1999 2000

Fiscal Year

2001 2002 2003 2004 2005 2006

General government

County Building Operating Cost per Gross Square Foot

Public safety

Sheriff:

Jail Facility Bookings

Warrants Issued & Cleared

Corrections:

Adult Probation Cases

Juvenile Probation Cases

Average daily population All Facilities

Highways and streets

Vehicle miles traveled on County roads

Health

WIC Nutrition Progam Client served

Client personal care attendant assessments

Human services

Financial Assistance Cases

Out of Home Placements

Applications for Financial Assistance

Services for Disabled Adults

Child Maltreatment Intake Reports

Culture and recreation

Parks and recreation:

Ice hours rented at ice arenas

Park shelter rentals

Libraries:

Total Circulation

Visits to Library Buildings

Librarian reference assistance

Economic development and assistance

Workforce Solutions:

Percent of participants in voluntary programs employed

Percent of participants in mandatory programs employed

N/A

20,081

N/A

25,345

2,966

384

1,771,481

N/A

N/A

33,387

N/A

N/A

N/A

N/A

N/A

N/A

2,647,348

1,167,257

258,622

N/A

N/A

N/A

20,871

N/A

21,422

N/A

23,352

19,761

25,581

2,992

447

28,348

3,004

425

27,574

3,338

454

N/A

N/A

32,410

N/A

N/A

N/A

N/A

32,347

N/A

N/A

N/A

N/A

33,067

N/A

N/A

N/A

N/A

N/A

N/A

2,645,526

1,291,641

244,261

2,741,949

1,390,843

169,732

2,811,940

1,490,569

293,211

2,996,503

1,531,946

313,277

3,404,282

1,641,497

293,569

N/A

N/A

N/A

N/A

N/A

N/A

N/A

N/A

N/A

N/A

N/A

N/A

N/A

N/A

N/A

N/A

N/A

23,233

18,855

24,240

20,140

29,095

3,404

469

31,765

3,398

503

1,809,050 1,846,619 1,882,905 1,919,190 1,940,058

N/A

N/A

34,993

N/A

N/A

207

N/A

37,881

3,842

28,433

438

1,457

N/A

N/A

N/A

N/A

$ 5.45

N/A

N/A

13,423

N/A

N/A

N/A

$ 5.36

$ 5.43

$ 5.28

$ 5.28

23,578

18,467

23,652

17,059

25,025

15,598

25,864

15,118

32,331

3,231

515

31,234

3,040

505

29,553

3,151

531

28,763

3,529

539

1,960,926 1,929,843 1,898,759 1,884,314

26,161

1,438

27,744

1,884

28,610

1,772

29,436

1,710

39,247

3,473

31,205

714

1,427

40,937

3,565

31,205

916

1,502

41,536

3,287

34,267

1,145

1,833

43,053

3,260

37,158

1,366

1,718

12,774

1,315

15,389

1,247

15,814

1,272

15,746

1,254

3,579,427

1,626,456

269,444

3,749,432

1,623,429

274,712

3,842,512

1,681,171

272,302

4,074,673

1,674,239

264,372

N/A

N/A

N/A

N/A

73%

63%

77%

71%

Source: County Budgeting and Accounting Office and individual county departments.

N/A: Not available

Unaudited

Page 133

TABLE XVIII

RAMSEY COUNTY, MINNESOTA

CAPITAL ASSETS STATISTICS BY FUNCTION

LAST TEN FISCAL YEARS

Function/Program

Public safety

Patrol Station

Law Enforcement Center

Post Adjudicated Correctional facilities

Pre-Adjudicated Correctional Facilities

Highways and streets

Centerline miles of county road maintained

Culture and recreation

Parks and recreation:

Number of regional parks

Number of county parks

Park acreage:

Developed

Undeveloped

County golf courses

Golf dome (practice range)

Ice arenas

Fairgrounds

Nature center

Archery range

Picnic shelters

Pavilions

1997 1998 1999 2000

Fiscal Year

2001 2002 2003 2004 2005 2006

1

1

3

1

1

1

3

1

1

1

3

1

1

1

3

1

1

1

3

1

1

1

3

1

1

1

3

1

1

1

3

1

1

1

3

1

286 281 281 298 298 302 302 298 298 298

3

1

1

1

6

9

6

9

6

9

6

9

6

9

6

9

6

9

6

9

6

9

6

9

N/A

N/A

4

1

11

1

1

1

28

4

N/A

N/A

4

1

11

1

1

1

28

4

N/A

N/A

4

1

10

1

1

1

28

4

N/A

N/A

4

1

11

1

1

1

28

4

5,478

636

4

1

11

1

1

1

28

4

5,478

636

4

1

11

1

1

1

28

4

5,478

636

4

1

11

1

1

1

28

4

5,478

636

5

1

11

1

1

1

28

4

5,478

636

5

1

11

1

1

1

28

4

5,478

636

5

1

11

1

1

1

28

4

Source: County Budgeting and Accounting Office and individual county departments.

N/A: Not available Unaudited

Page 134

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