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1995 Audited Financial Statements I I I I I I I I I I I I I I I I I I I CITY OF ALBERTVILLE, MINNESOTA TABLE OF CONTENTS ELECTED OFFICIALS AND ADMINISTRATION INDEPENDENT AUDITORS' REPORT GENERAL PURPOSE FINANCIAL STATEMENTS - Combmed Balance Sheet - All Fund Types and Account Groups Combmed Statement of Revenues, ExpendItures and Changes m Fund Balance - All Governmental Fund Types Combmed Statement of Revenues, ExpendItures and Changes m Fund Balance - Budget and Actual - General and SpecIal Revenue Fund Types Combmed Statement of Revenues, Expenses and Changes m Retamed Earmngs - All Propnetary Fund Types Combmed Statement of Cash Flows - All Propnetary Fund Types Notes to the FmancIaI Statements COMBINING AND INDIVIDUAL FUND FINANCIAL STATEMENTS - General Fund - Balance Sheet Statement of Revenues, ExpendItures and Changes m Fund Balance - Budget and Actual SpecIal Revenue Funds - Combmmg Balance Sheet Combmmg Statement of Revenues, ExpendItures and Changes m Fund Balance Debt ServIce Funds Combmmg Balance Sheet Combmmg Statement of Revenues, ExpendItures, and Changes m Fund Balance CapItal Projects Funds - Combmmg Balance Sheet CombImng Statement of Revenues, ExpendItures and Changes m Fund Balance Agency Funds - Statement of Changes m Assets and LIabIhtIes Statement of General FIxed Assets Statement of General Long-Term Debt SUPPLEMENTARY INFORMATION - Statement of Sources and Uses ofPubhc Funds for EconomIc Development DIstnct No 5 Statement of Sources and Uses ofPubhc Funds for EconomIc Development DIstnct No 6 1 2 4 5 6 7 8 9 37 38 43 44 45 47 49 52 55 56 57 58 59 I I I I I I I I I I I I I I I I I I I Elected OfficIals MIchael Potter Sharon Anderson Duane Bemmg Curt Muyres John Vetsch GarrIson Hale Lmda Houghton CITY OF ALBERTVILLE, MINNESOTA ELECTED OFFICIALS AND ADMINISTRATION December 31, 1995 POSItIOn Mayor CounCIl Member CouncIl Member CouncIl Member CouncIl Member Ap.,pomted CIty AdmmIstrator CIty Clerk-Treasurer Year Term of Office ExpIres 1996 1996 1998 1998 1996 1997 Indefimte 1 I :~oV I I I I I I I I I I I I I I I I Kern, DeWenter, Viere, Ltd. CertifIed Public Accountants Alvm M Kern Duane N DeWenter Loren M V,ere Gerald A Stover KeIth W Julson Dwayne B Dockendorf DavId H Hmnenkamp INDEPENDENT AUDITORS' REPORT February 23, 1996 Honorable Mayor and Members of the CIty Councd CIty of Albertvdle Albertvdle, Mmnesota We have audIted the general purpose financIal statements of the CIty of AlbertvIlle, Mmnesota, as of and for the year ended December 31, 1995, as hsted m the table of contents These general purpose financIal statements are the responsIbIhty of the CIty'S management Our responsIbIhty IS to express an opImon on these financial statements based on our audIt Except as dIscussed In the follOWIng paragraph, we conducted our audIt In accordance wIth generally accepted audItmg standards Those standards reqUlre that we plan and perform the audIt to obtam reasonable assurance about whether the financial statements are free of matenal mIsstatement An audIt mcludes examImng, on a test basIs, eVIdence supportmg the amounts and dIsclosures m the general purpose financial statements An audIt also mcludes assessmg the accountmg pnncIples used and sIgmficant estimates made by management, as well as evaluatmg the overall general purpose financial statement presentatIOn We beheve that our audIt proVIdes a reasonable basIS for our opmIOn Because the CIty does not mamtam adequate hIstoncal cost fixed asset accountmg records, It was not practicable to extend our audItmg procedures to enable us to express, and we do not express, an opImon on the balance sheet of the general fixed asset account group as of December 31, 1995 In our opmIOn, except for the effect of such adjustments, If any, that mIght have been determmed to be necessary had we audIted the General FIxed Asset Account Group, the general purpose finanCial statements referred to above present fauly, m all matenal respects, the finanCIal pOSItIOn of the CIty of Albertvllle, Mmnesota, as of December 31, 1995, and the results of Its operatIOns and cash flows of Its propnetary fund types for the year then ended m wnformIty WIth generally accepted accountmg pnncIples 2 220 Park Avenue South PO Box 1304 St Cloud, MN 56302 320-251-7010 FAX 320-251-1784 I I I I I I I I I I I I I I I I I I I Honorable Mayor and CIty CouncIl February 23, 1996 Page 2 Our audIt was made for the purpose of formmg an opmIOn on the general purpose financIal statements taken as a whole The combImng and mdIvIdual fund financIal statements and supplementary mformatIOn lIsted m the table of contents are presented for purposes of addItIonal analysIs and are not a reqUIred part of the general purpose financIal statements of CIty of AlbertvIlle, Mmnesota Such mformatIOn has been subjected to the audItmg procedures applIed m the audIt of the general purpose financIal statements and, m our opmIOn, IS faIrly presented m all matenal respects m relatIOn to the general purpose financIal statements taken as a whole KWI, !y-JJUltJA I V ifu( ~fzL KERN, DEVVENTER,VIERE, LTD 3 CITY OF ALBERTVILLE, MINNESOTA I COMBINED BALANCE SHEET - ALL FUND TYPES AND ACCOUNT GROUPS I December 31, 1995 I Governmental Fund Types I SpecIal Debt ASSETS AND OTHER DEBITS General Revenue ServIce I Assets Cash and Investments (Includmg Cash EqUIvalents) $ 490,619 $ 602,234 $ 1,409,589 I Taxes ReceIvable - Delmquent 3,813 0 828 SpecIal Assessments ReceIvable - I Deferred 0 0 842,156 DelInquent 0 0 18,855 Accounts ReceIvable 0 0 0 Interest ReceIvable 26,873 0 0 I Due from Other Governmental Umts 3,423 0 27,240 Loans ReceIvable 0 86,255 0 Investments for Deferred CompensatIOn Plan 0 0 0 I FIxed Assets - Net 0 0 0 Other DebIts Amount AvaIlable m Debt ServIce Funds 0 0 0 I Amount to be ProvIded for RetIrement of General Long-Term Debt 0 0 0 TOTAL ASSETS AND OTHER DEBITS $ 524,728 $ 688,489 $ 2,298,668 I LIABILITIES, EQUITY AND OTHER CREDITS LIabIlItIes I Cash Overdraft $ 0 $ 0 $ 57,312 Accounts Payable 32,336 0 0 Contracts Payable 33,000 0 0 I Deferred Revenue 3,813 86,255 861,839 Deferred CompensatIon Payable 0 0 0 Bonds Payable 0 0 0 I Total LIabIlItIes 69,149 86,255 919,151 EqUIty and Other CredIts I Investment m General FIxed Assets 0 0 0 ContrIbuted CapItal 0 0 0 Retamed Earnmgs 0 0 0 Fund Balance 455,579 602,234 1,379,517 I Total EqUIty and Other CredIts 455,579 602,234 1,379,517 TOTAL LIABILITIES, EQUITY AND I OTHER CREDITS $ 524,728 $ 688,489 $ 2,298,668 I I I I I ProprIetary FIduciary Fund Type Fund Type Account Groups I General Totals FIxed General (Memorandum CapItal Trust Assets Long-Term Only) I Projects EnterprIse and Agency (UnaudIted) Debt 1995 $ 280,734 $ 99,763 $ 0 $ 0 $ 0 $ 2,882,939 I 0 0 0 0 0 4,641 I 0 0 0 0 0 842,156 0 0 0 0 0 18,855 16,868 51,247 0 0 0 68,115 I 0 0 0 0 0 26,873 0 0 0 0 0 30,663 0 0 0 0 0 86,255 I 0 0 30,266 0 0 30,266 0 3,252,857 0 700,115 0 3,952,972 I 0 0 0 0 1,379,517 1,379,517 0 0 0 0 1,138,483 1,138,483 I $ 297 ,602 $ 3,403,867 $ 30,266 $ 700,115 $ 2,518,000 $ 10,461,735 I $ 55,081 $ 0 $ 0 $ 0 $ 0 $ 112,393 0 3,282 0 0 0 35,618 I 0 0 0 0 0 33,000 0 0 0 0 0 951,907 0 0 30,266 0 0 30,266 I 0 1,399,843 0 0 2,518,000 3,917,843 55,081 1,403,125 30,266 0 2,518,000 5,081,027 I 0 0 0 700,115 0 700,115 0 1,823,591 0 0 0 1,823,591 0 177,151 0 0 0 177,151 I 242,521 0 0 0 0 2,679,851 242,521 2,000,742 0 700,115 0 5,380,708 I $ 297,602 $ 3,403,867 $ 30,266 $ 700,115 $ 2,518,000 $ 10,461,735 I 4 I CITY OF ALBERTVILLE, MINNESOTA I COMBINED STATEMENT OF REVENUES, EXPENDITURES, I AND CHANGES IN FUND BALANCE - ALL GOVERNMENTAL FUND TYPES Year Ended December 31, 1995 I Governmental Fund Types I SpecIal Debt General Revenue ServIce REVENUES I Taxes $ 332,163 $ 0 $ 127,654 Special Assessments 0 0 276,142 Licenses and PermIts 77,747 0 0 I Intergovernmental Revenues 212,427 0 0 Charges for ServIces 70,522 0 10,400 Fmes 126 0 0 I MIscellaneous Revenues 130,970 38,944 89,550 Total Revenues 823,955 38,944 503,746 EXPENDITURES I Current - General Government 286,503 0 0 I PublIc Safety 216,039 0 0 PublIc Works 108,551 0 0 Culture and RecreatIOn 28,754 1,964 0 I MIscellaneous 3,625 0 1,085 CapItal Outlay 0 0 0 Debt ServIce - PnncIpal 0 0 363,000 I Interest and FIscal Charges 0 0 160,008 Total ExpendItures 643,472 1,964 524,093 EXCESS OF REVENUES OVER (UNDER) I EXPENDITURES 180,483 36,980 (20,347) OTHER FINANCING SOURCES I Operatmg Transfers In 0 101,650 0 EXCESS OF REVENUES AND OTHER SOURCES I OVER (UNDER) EXPENDITURES 180,483 138,630 (20,347) FUND BALANCE - January 1 275,096 463,604 1,399,864 I FUND BALANCE - December 31 $ 455,579 $ 602,234 $ 1,379,517 I The notes to the finanCIal statements are an mtegral part of thIS statement I I I I CITY OF ALBERTVILLE, MINNESOTA I COMBINED STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE - BUDGET AND ACTUAL - GENERAL AND SPECIAL REVENUE FUND TYPES I Year Ended December 31, 1995 I General Fund Over I (Under) Budget Actual Budget REVENUES I Taxes $ 286,486 $ 332,163 $ 45,677 Licenses and Permits 37,000 77,747 40,747 Intergovernmental Revenues 202,081 212,427 10,346 Charges for Services 69,373 70,522 1,149 I Fmes 100 126 26 Miscellaneous Revenues 950 130,970 130,020 Total Revenues 595,990 823,955 227,965 I EXPENDITURES Current - I General Government 225,416 286,503 61,087 Pubhc Safety 150,070 216,039 65,969 Pubhc Works 124,870 108,551 (16,319) I Culture and RecreatiOn 35,634 28,754 (6,880) Miscellaneous 0 3,625 3,625 Total Expenditures 535,990 643,472 107,482 I EXCESS OF REVENUES OVER EXPENDITURES 60,000 180,483 120,483 OTHER FINANCING SOURCES I Operatmg Transfers In 0 0 0 EXCESS OF REVENUES AND OTHER I SOURCES OVER EXPENDITURES $ 60,000 180,483 $ 120,483 FUND BALANCE - January 1 275,096 I FUND BALANCE - December 31 $ 455,579 I I I The notes to the finanCial statements are an mtegral part of this statement I I I I I I Totals SpecIal Revenue Funds (Memorandum Only) I Over Over (Under) (Under) Budget Actual Budget Budget Actual Budget I $ 0 $ 0 $ 0 $ 286,486 $ 332,163 $ 45,677 0 0 0 37,000 77,747 40,747 0 0 0 202,081 212,427 10,346 I 0 0 0 69,373 70,522 1,149 0 0 0 100 126 26 0 38,944 38,944 950 169,914 168,964 I 0 38,944 38,944 595,990 862,899 266,909 I 0 0 0 225,416 286,503 61,087 0 0 0 150,070 216,039 65,969 I 0 0 0 124,870 108,551 (16,319) 0 1 ,964 1,964 35,634 30,718 (4,916) 0 0 0 0 3,625 3,625 0 1,964 1,964 0 645,436 109,446 I 0 36,980 36,980 0 217,463 157,463 I 0 101,650 101,650 0 101,650 101,650 I I $ $ 0 138,630 138,630 $ 0 319,113 $ 259,113 I 463,604 738,700 I $ 602,234 $ 1,057,813 I I I 6 I I I I I I I I I I I I I I I I I I I I CITY OF ALBERTVILLE, MINNESOTA COMBINED STATEMENT OF REVENUES, EXPENSES AND CHANGES IN RETAINED EARNINGS - ALL PROPRIETARY FUND TYPES Year Ended December 31, 1995 SanItary Sewer Enterpnse OPERATING REVENUES Charges for ServIces $ 127,193 Sewer A vaIlablhty Charges 101,650 PenaltIes 8,692 Total Operatmg Revenues 237,535 OPERATING EXPENSES Salanes 12,824 Employee Benefits 3,929 Electnclty 12,157 Fuel 011 1,960 Gasolme and 011 1,615 RepaIrS and Mamtenance 13,022 Supphes 3,250 ProfessIOnal ServIces 3,375 ChemIcals 8,034 Testmg Expense 4,390 Insurance 4,751 Travel and Trammg 314 DepreCIatIOn 75,143 MIscellaneous 574 Total Operatmg Expenses 145,338 OPERATING INCOME 92,197 NON-OPERATING REVENUES (EXPENSES) Interest Income 10,809 Gam on Sale of FIxed Assets 625 Interest Expense and FIscal Charges (46,563) Total Non-Operatmg Revenues (Expenses) (35,129) INCOME BEFORE OPERATING TRANSFERS 57,068 Operatmg Transfer Out (101,650) NET (LOSS) (44,582) RETAINED EARNINGS - January 1 221,733 RETAINED EARNINGS - December 31 $ 1 77,151 The notes to the finanCIal statements are an mtegral part of thIS statement 7 I I CITY OF ALBERTVILLE, MINNESOTA COMBINED STATEMENT OF CASH FLOWS - I ALL PROPRIETARY FUND TYPES Year Ended December 31, 1995 I Samtary Sewer I Enterpnse CASH FLOWS FROM OPERATING ACTIVITIES Operatmg Income $ 92,197 Adjustments to ReconcIle Operatmg Income to I Net Cash ProvIded by Operatmg ActIvItIes DepreCiatIOn 75,143 Change m Current Assets and LIabIhtIes I (Increase) m SpecIal Assessments ReceIvable (224) (Increase) m Accounts ReceIvable (7,914) (Decrease) m Accounts Payable (339) I (Decrease) m Accrued LIabIhtIes (1,860) Total Adjustments 64,806 Net Cash PrOVIded by Operatmg ActIvIties 157,003 I CASH FLOWS FROM NONCAPITAL FINANCING ACTIVITIES Operatmg Transfers Out (101,650) I Net Cash (Used) by NoncapItal Fmancmg ActivItIes (101,650) CASH FLOWS FROM CAPITAL AND RELATED FINANCING I ACTIVITIES PrmcIpal Payments on Bonds (54,671) Interest and FIscal Charges PaId on Bonds (46,563) I Proceeds from Sale of FIxed Assets 1,050 Net Cash (Used) by CapItal and Related Fmancmg ActivIties (100,184) CASH FLOWS FROM INVESTING ACTIVITIES I Interest on Investments 10,809 Net Cash PrOVIded by Investmg ActivItIes _JO,8~ I Net Increase m Cash and Cash EqUivalents (34,022) Cash and Cash EqUivalents, January 1 133,785 I Cash and Cash EqUivalents, December 31 $ 99,763 ---- I I I The notes to the financial statements are an mtegral part of thiS statement I 8 I I I I I I I I I I I I I I I I I I I CITY OF ALBERTVILLE, MINNESOTA NOTES TO THE FINANCIAL STATEMENTS December 31, 1995 NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES The CIty of AlbertvIlle, Mmnesota, has a mayor-councIl form of government A mayor and four councIl members are elected by the voters of the CIty for two-year and four-year terms, respectively The accountmg polIcIes of the CIty conform to generally accepted accountmg prmcIples A FmancIaI Reportmg Entity In accordance With GASB Statement No 14, The FmancIaI Reportmg Entity, the financial statements present the CIty and Its component unIts The CIty mc1udes all funds, account groups, orgaruzatIOns, mstItutIOns, agencIes, departments, and offices that are not legally separate from such Component unIts are legally separate orgamzatIOns for WhICh the elected offiCials of the CIty are financially accountable and are mc1uded wIthm the general purpose financial statements of the CIty because of the sIgmficance of theIr operatIOnal or financial relatIOnshIps WIth the CIty The CIty IS consIdered financially accountable for a component unIt If It appomts a votmg maJonty of the organIzatIOn's govemmg body and It IS able to Impose ItS Will on the organIzatIOn by sIgmficantly mfluencmg the programs, projects, actIVIties, or level of servIces performed or proVIded by the organIzatIOn, or there IS a potential for the organIzatIOn to proVIde speCIfic finanCial benefits to, or Impose speCIfic finanCial burden on, the CIty As a result of applymg the component unIt defimtIOn cntena above, It has been detemuned the CIty has no component unItS B Fund Accountmg The accounts of the CIty are organIzed on the baSIS of funds and account groups, each of WhICh IS conSIdered a separate accountmg entity The operations of each fund are accounted for WIth a separate set of self-balancmg accounts that compnse ItS assets, lIabIlIties, fund eqUity, revenues and expendItures or expenses, as appropnate Government resources are allocated and accounted for m mdIvIdual funds based upon the purposes for WhICh they are to be spent and the means by WhICh spendmg actIVIties are controlled The vanous funds are grouped, m the finanCial statements m thIS report, mto SIX genenc fund types and three broad fund categones, descnbed below Governmental Funds The General Fund IS the general operatmg fund of the CIty It IS used to account for all finanCial resources except those reqUired to be accounted for III another fund 9 I II I I I I I I I I I I I I I I I I I CITY OF ALBERTVILLE, MINNESOTA NOTES TO THE FINANCIAL STATEMENTS December 31, 1995 (Contmued) NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Contmued) B Fund Accountmg (Contmued) Governmental Fund (Contmued) SpeCial Revenue Funds are used 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 The CIty has four SpecIal Revenue Funds Debt ServIce Funds are used to account for the accumulatIOn of resources for, and the payment of pnncIpal, mterest, and related costs of general long-term debt The CIty has SIxteen Debt ServIce Funds CapItal Projects Funds are used to account for finanCial resources to be used for the acqUISItIon or constructIOn of major capItal facIlItIes (other than those financed by propnetary funds) The CIty has twenty CapItal Projects Funds Propnetary Funds Enterpnse Funds are used to account for operatIOns (a) that are financed and operated m a manner SImIlar to pnvate busmess enterpnses--where the mtent of the governmg body IS that the costs (expenses, mcludmg depreCIatIOn) of provIdmg goods or servIces to the general publIc on a contmumg basIs be financed or recovered pnmanly through user charges, or (b) where the governmg body has deCIded that the pen OdIC determmatIOn of revenues earned, expenses mcurred, or net mcome IS appropnate for capItal mamtenance, publIc polIcy, management control, accountabIlIty, or other purposes FIdUCIary Funds Agency Funds are used to account for assets held by the CIty as an agent for mdIvIduals, pnvate organIzatIOns, other governments and/or other funds The CIty'S Agency Fund IS custodial m nature and does not mvolve measurement of results of operatIOns Account Groups The General FIxed Assets Account Group (unaudIted) IS used to account for the CIty'S fixed assets, other than those accounted for m propnetary funds The General Long-Term Debt Account Group IS used to account f01 the CIty'S long-term debt, other than that accounted for m propnetary funds 10 I I I I I I II I I I I I I I I I I I I CITY OF ALBERTVILLE, MINNESOTA NOTES TO THE FINANCIAL STATEMENTS December 31, 1995 (Contmued) NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Contmued) C Measurement Focus. FIxed Assets and Long-Term LiabIlItIes The accountmg and reportmg treatment applIed to the fixed assets and long-term lIabIlItIes assocIated WIth a fund are determmed by ItS measurement focus All governmental funds are accounted for on a spendmg or "financIal flow" measurement focus ThIS means that only current assets and current lIabIlItIes are generally mcluded on theIr balance sheets TheIr reported fund balance (net current assets) IS consIdered a measure of avaIlable spendable resources Governmental fund operatmg statements present mcreases (revenues and other financmg sources) and decreases (expendItures and other financmg uses) m net current assets Accordmgly, they are saId to present a summary of sources and uses of aVaIlable spendable resources dunng a penod FIxed assets used m governmental fund type operatIOns (general fixed assets) are accounted for m the General FIxed Assets Account Group, rather than m governmental funds PublIc domam ("mfrastructure") general fixed assets--whIch are certam Improvements other than bUIldmgs, mcludmg roads, curbs and gutters, streets and SIdewalks, dramage systems, and lIghtmg systems--are not capItalIzed by the CIty No depreCiatIOn has been proVIded on general fixed assets All fixed assets are valued at theIr hIstoncal cost or estImated hIstoncal cost If actual cost IS not avaIlable Donated fixed assets are valued at theIr estImated faIr value on the date donated Long-term lIabIlItIes expected to be financed from governmental funds are accounted for m the General Long-Term Debt Account Group, not m the governmental funds The two account groups are not "funds" They are concerned only WIth the measurement of financIal posItIon They are not mvolved WIth measurement of results of operatIOns Because of theIr spendmg measurement focus, expendIture recogmtIOn for governmental fund types IS lImIted to exclude amounts represented by non-current lIabIlItIes Smce they do not affect net current assets, such long-term amounts are not recogmzed as governmental fund type expendItures or fund lIabIlItIes They are mstead reported as lIabIlItIes m the General Long-Term Debt Account Group All propnetary funds are accounted for on a flow of economIC resources measurement focus ThIS means that all assets and all lIabIlItIes (whether current or non-current) aSSOCiated WIth the fund's actIVIty are mcluded on the balance sheet TheIr reported fund eqUIty (net total assets) IS segregated mto contnbuted capItal and retamed earnmgs components Propnetary fund type operatmg statements present mcreases (revenues) and decreases (expenses) m net total assets 11 I I I I I I I I I I I I I I I I I II CITY OF ALBERTVILLE, MINNESOTA NOTES TO THE FINANCIAL STATEMENTS December 31, 1995 (Contmued) NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Contmued) C Measurement Focus. FIxed Assets and Long-Term LIabIhtIes (Contmued) DeprecIation of all exhaustible fixed assets used by propnetary funds IS charged as an expense agamst operations Accumulated depreCiatIOn IS reported on the propnetary fund balance sheet DeprecIatIOn has been proVIded over the assets' estImated useful hves usmg the straIght-hne method The estimated useful hves of the fixed assets range from five to fifty years D BasIS of Accountmg BaSIS of accountmg refers to when revenues and expendItures or expenses are recognIzed m the accounts and reported m the finanCIal statements BasIS of accountmg relates to the tImmg of the measurement made, regardless of the measurement focus apphed All governmental funds are accounted for usmg the modIfied accrual basIS of accountmg, m WhICh revenues are recognIzed when they become measurable and avaIlable as net current assets The CIty conSIders property taxes as aVailable If they are collected WIthm 60 days after year end A one-year avaIlabIhty penod IS used for revenue recognItIOn for all other governmental fund revenues ExpendItures are recorded when the related fund habIhty IS mcurred PnncIpal and mterest on general long-term debt are recorded as fund habIhtIes when due or when amounts have been accumulated m the debt servIce fund for payments to be made early m the follOWing year Major revenues that are susceptIble to accrual mclude property taxes, mtergovernmental revenues, charges for servIces, and mterest on mvestments Major revenues that are not susceptible to accrual mclude hcenses and permIts, fees and mIscellaneous revenues, such revenues are recorded only as receIved because they are not measurable untIl collected ExpendItures are generally recognIzed under the modIfied accrual baSIS of accountmg when the related fund habIlItIes are mcurred ExceptIOns to thIS rule mclude SIck pay and pnnclpal and mterest on general long-term debt, which are recognIzed when due All propnetary funds are accounted for usmg the accrual baSIS of accountmg, revenues are recognIzed when they are earned and expenses are recognIzed when they are mcurred 12 II I I I I I I I I I I I I I I I I I I I CITY OF ALBERTVILLE, MINNESOTA NOTES TO THE FINANCIAL STATEMENTS Year Ended December 31, 1995 (Contmued) NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Contmued) E Bud~etary Data The CIty CouncIl adopts an annual budget The amounts shown m the finanCIal statements as "budget" represent the ongmal budgeted amount and all reVISIOns made dunng the year The CIty follows these procedures m establtshmg the budgetary data reflected m the financIal statements 1 Budget requests are submItted by all department heads to the CIty Admlrustrator The CIty Admtrustrator compIled the budget requests mto an overall preltmmary CIty budget 2 The CIty Admlrustrator presents the proposed budget to the CIty CouncIl The budget resolutIon adopted by the CIty CouncIl sets forth the budget at the functIon level for the General Fund 3 Formal budgetary mtegratIOn IS employed as a management control devIce dunng the year for the General Fund No budgets are adopted for SpecIal Revenue Funds Formal budgetary mtegratIOn IS not employed for Debt ServIce Funds because effectIve budgetary control IS alternatIvely achIeved through general obltgatIOn bond mdenture provIsIons Budgetary control for CapItal Projects Funds IS accompltshed through the use of project controls 4 The budget for the General Fund IS adopted on a basIs conSIstent WIth generally accepted accountmg pnnclples (GAAP) F Encumbrances Encumbrances represent outstandmg purchase orders and unfulfilled commItments that are Issued to outsIde vendors and budgeted m the current year but do not mclude amounts that are set up as ltabIlttIes, amounts for personal servIces to be performed by CIty employees and purchase orders appltcable to the subsequent year's budget As of December 31, 1995, no outstandmg encumbrances eXIsted G Cash and Investments (Includm~ Cash EqUIvalents) (See Note 3) Cash balances from all funds are combmed and mvested to the extent aVaIlable m authonzed mvestments Earnmgs from such mvestments are allocated to the respectIve funds on the basIs of apphcable cash balance partICIpatIon by each fund Investments are carned at cost WhICh approxImates market Any premIUms or dIscounts are amortIzed over the matunty of the mvestment 13 I I I I I I I I I I I I I I I I I I I CITY OF ALBERTVILLE, MINNESOTA NOTES TO THE FINANCIAL STATEMENTS Year Ended December 31, 1995 (Contmued) NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Contmued) G Cash and Investments (Jnc1udm~ Cash EqUIvalents) (See Note 3) (Contmued) Investments for Deferred CompensatIOn Plans are stated at market value For purposes of the Statement of Cash Flows ofpropnetary fund types, cash eqUIvalents are defined as short-term, highly hqUId mvestments that are both a readIly convertible to known amounts of cash, or b so near their matunty that they present mSlgmficant nsk of changes m value because of changes m mterest rates The City'S pohcy conSiders cash eqUIvalents to be those that meet the above cntena and have ongmal matuntIes of three months or less H Taxes ReceIvable Delmquent taxes receIvable represent the past SIX years of uncollected tax leVIes I SpeCial Assessments ReceIvable Delmquent speCial assessments represent the past SIX years of uncollected speCial assessments Deferred speCial assessments represent the pnncIpal portIOn of those assessments to property owners for Improvements made by the CIty and are to be paId m 1996 and years thereafter J Loans ReceIvable Loans receIvable represent a loan made to a local busmess for the purpose of economIC development K Deferred Revenue Deferred revenue represents dehnquent taxes, dehnquent and deferred assessments receIvable, and notes receIvable ThIS revenue IS deferred untIl It IS measurable and aVailable as net current assets L VacatIOn and SIck Leave The CIty compensates employees who reSIgn or retIre WIth due notIce for unused vacatIOn and hohday pay Employees may carry over no more than 20 days of vacatIOn at the end of any vacatIOn year as estabhshed by the employees' annIversary date 14 I I I I I I I I I I I I I I I I I I I CITY OF ALBERTVILLE, MINNESOTA NOTES TO THE FINANCIAL STATEMENTS Year Ended December 31, 1995 (Contmued) NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Contmued) L VacatIOn and SIck Leave (Contmued) The CIty also compensates for unused sIck leave SIck leave may be accumulated as earned wIth no lImIt on the number of days allowed to accrue Upon termmatIOn of employment m good standmg, the employee shall receIve as severance payment (not to exceed 480 hours or 570 hours as applIcable) the portIOn of the employee's vested accumulated sICk leave to a maxImum of71 25 days In order to be elIgIble, such employee must have completed 15 consecutIve years of employment VacatIOn pay and SIck pay are consIdered expendItures m the year due m the governmental fund types, while m the propnetary fund types, vacatIOn and SIck pay are charged to expense when earned M Fund EqUity Fund eqUity IS dIVIded mto sectIOns as follows - Contnbuted capItal represents fixed asset~ purchased by other funds and contrIbuted to the enterpnse fund - Retamed earmngs of enterpnse funds are subdIVIded as follows Reserved mdIcates the portIOn of retamed earnmgs whIch has been reserved for a specIfic purpose The unreserved portIon of retamed earnmgs whIch IS avatlable for expendmg m future penods - Fund balance accounts are subdIVIded as follows Reserved accounts mdIcate the portIOn of fund balance WhICh has been reserved for a specIfic purpose Unreserved, deSIgnated accounts mdIcate the portIOn of fund balance whIch has been deSIgnated for a specIfic purpose The unreserved, undesIgnated account IS the portIOn of fund balance whIch IS avaIlable for budgetmg and expendmg m future pen ods 15 I I I I I I I I I I I I I I I I I I I CITY OF ALBERTVILLE, MINNESOTA NOTES TO THE FINANCIAL STATEMENTS Year Ended December 31, 1995 (Contmued) NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Contmued) N Revenues. ExpendItures and Expenses 1 Revenues Property taxes and specIal assessment pnncIpal and mterest are recogruzed as revenue when measurable and aVaIlable Intergovernmental revenues are reported under the legal and contractual reqUIrements of the mdIvIdual programs LIcenses and permIts, charges for servIces, fines and forfeItures, and mIscellaneous revenues (except mvestment earmngs) are recorded as revenues when measurable and avaIlable Investment earmngs are recorded when earned because they are measurable and aVaIlable 2 Property Tax CollectIOn Calendar The CIty leVIes Its property tax for the subsequent year durmg the month of December The property tax IS recorded as revenue when It becomes measurable and aVaIlable WrIght County IS the collectmg agency for the levy and remIts the collectIons to the CIty three tImes a year Taxes not collected as of December 31 each year are shown as delmquent taxes receIvable December 28 IS the last day the CIty can certIfy a tax levy to the County AudItor for collectIOn the followmg year The County AudItor makes up the tax lIst for all taxable property m the CIty, applymg the applIcable tax rate to the tax capacIty of mdIvIdual propertIes, to arnve at the actual tax for each property The County AudItor also collects all specIal assessments, except for certam prepayments paId dIrectly to the CIty The County AudItor turns over a lIst of taxes to be collected on each parcel of property to the County Treasurer m January of each year The County Treasurer collects all taxes and IS reqUIred to maIl copIes of all personal property tax statements by February 15, and copIes of all real estate tax statements by AprIl 15, of each year 16 I I I I I I I I I I I I I I I I I I I CITY OF ALBERTVILLE, MINNESOTA NOTES TO THE FINANCIAL STATEMENTS Year Ended December 31, 1995 (Contmued) NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Contmued) N Revenues. ExpendItures and Expenses (Contmued) 2 Property Tax CollectIOn Calendar (Contmued) Property owners are reqUIred to pay one-half of theIr real estate taxes due by May 15 and the balance by October 15 If taxes due May 15 are not paid on time, a penalty of3% IS assessed on homesteaded property and 7% on non-homesteaded property An addItional 1 % penalty IS added each month the taxes remam unpaid, untIl October 15 If the taxes due May 15 are not paid by October 15, a 2% penalty per month IS added to homesteaded property and 4% per month to non-homesteaded property until January 1 If the taxes are not paid by January 1, further penaltIes are added PenaltIes and mterest apply to both taxes and special assessments There are some exceptIOns to the above penalties, but they are not matenal Wlthm 30 days after the tax settlement date, the County Treasurer IS reqUIred to pay 70% of the estimated collectIOns of taxes and special assessments to the CIty Treasurer The County Treasurer must pay the balance to the CIty Treasurer Wlthm 60 days aftel settlement, provIded that after 45 days mterest accrues at the rate of 8% per annum 3 ExpendItures ExpendIture recogmtIOn for governmental fund types mcludes only amounts represented by current lIabIlIties Smce noncurrent lIabIlIties do not affect net current assets, they are not recogmzed as governmental fund expendItures or fund lIabIlIties They are reported as lIabIlIties m the General Long-Term Debt Account Group 4 Expenses Propnetary fund types recogmze expenses when they are mcurred o Interfund TransactIOns QuasI-external transactIOns are accounted for as revenues, expendItures or expenses Transactions that constitute reImbursements to a fund for expendItures or expenses ImtIally made from It that are properly applIcable to another fund are recorded as expendItures or expenses m the fund that IS reImbursed 17 I I I I I I I I I I I I I I I I I I I CITY OF ALBERTVILLE, MINNESOTA NOTES TO THE FINANCIAL STATEMENTS Year Ended December 31, 1995 (Contmued) NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Contmued) o Interfund TransactIOns (Contmued) All other mterfund transactIons, except quasI-external and reImbursements, are reported as transfers Nonrecurrmg or nonroutme permanent transfers of eqUity are reported as resIdual eqUity transfers All other mterfund transfers are reported as operatmg transfers P Total Columns on General Pw:pose Statements Total columns on the general purpose financial statements are captIOned "memorandum only" to mdIcate that they are presented only to faCIlItate financial analysIs Data m these columns do not present finanCIal pOSItIon, results of operatIOns, or cash flows m conformIty With generally accepted accountmg prmcIples Interfund elImmatIOns have not been made m the aggregatIOn of thIs data NOTE 2 - STEWARDSHIP. COMPLIANCE AND ACCOUNTABILITY A Fund Balance DefiCIts The follOWing funds had defiCIt fund balances at December 31, 1995 Debt ServIce Funds - 1988 Refundmg Bonds G 0 Refundmg Improvement Fund 1988 Sewer and Water Revenue Bonds $ 17,867 19,861 18,337 CapItal Projects Funds - TIF Ed DIstnct 2, 3, and 4 I -94 Fund ParksIde 1 st AddItIon Fund Psyk's 5th AddItIon Fund Psyk's 6th AddItIon Fund Parks Ide 2nd AddItIon Fund FIre Hall BUIldmg MLDCO Barthel Commercial Barthel Industnal Dnve and 52nd St Bnttany Kay Estates Meadowvlew SImonson Lumber 14,640 1,991 5,096 787 349 2,170 2,017 393 1,536 8,454 138 108 534 These defiCIts wIll be elImmated by future leVIes and/or operatmg transfers 18 I I I I I I I I I I I I I I I I I I I CITY OF ALBERTVILLE, MINNESOTA NOTES TO THE FINANCIAL STATEMENTS Year Ended December 31, 1995 (ContInued) NOTE 2 - STEWARDSHIP. COMPLIANCE AND ACCOUNTABILITY (ContInued) B ExpendItures In Excess of AppropnatIOns ExpendItures exceeded appropnatIOns m the followmg funds for the year ended December 31, 1995 ExpendItures AppropnatIOns General Fund SpecIal Revenue Fund Park Fund $ 643,472 1,964 $ 535,990 o NOTE 3 - DETAILED NOTES ON ALL FUNDS AND ACCOUNT GROUPS A Assets 1 Cash and Investments (IncludIng Cash EqUIvalents) Cash balances of the CIty'S funds are combIned (pooled) and mvested to the extent avaIlable m varIOUS mvestments authonzed by MInnesota State Statutes Each fund's portIon of thIS pool (or pools) IS dIsplayed on the financial statements as "cash and mvestments (mcludmg cash eqUIvalents)" For purposes of IdentIfymg nsk of Investmg publIc funds, the balances and related restnctIOns are summanzed below a DeposIts - MInnesota Statutes reqUIre that all deposIts WIth financial InstitutIOns must be collateralIzed In an amount equal to 110% of deposIts In excess of FD I C Insurance (140% If collateralIzed With notes secured by first mortgages) Category 1 mcludes deposIts covered by Federal DeposItory Insurance (FDIC) and those deposIts collateralIzed WIth secuntIes held by the CIty or by ItS agent m the CIty'S name Category 3 Includes deposIts whIch are not msured or collateralIzed 19 I I I I I I I I I I I I I I I I I I I CITY OF ALBERTVILLE, MINNESOTA NOTES TO THE FINANCIAL STATEMENTS Year Ended December 31, 1995 (ContInued) NOTE 3 - DETAILED NOTES ON ALL FUNDS AND ACCOUNT GROUPS (ContInued) A Assets (Contmued) 1 Cash and Investments (IncludIng Cash EqUivalents) (ContInued) a DepOSIts - (ContInued) Category Bank Carrymg 1 -L- 3 Balance Amount CertIficates of DepOSIt $ 662,477 $ 0 $ 23,632 $ 686,109 $ 686,109 Bank Accounts 1.168.099 --<l 0 1.168.099 996.445 Total DepOSIts $ 1.830.576 $ 0 $ 23.632 $ 1.854.208 $ 1.682.554 b Investments - MInnesota State Statutes authonze the CIty to Invest In oblIgatIOns of the US Treasury, agenCIes and InstrumentalItIes, shares of Investment companIes whose only Investments are In the forementlOned secuntIes, oblIgations of the State of MInnesota or ItS munICIpalIties, bankers' acceptances, future contracts, repurchase and reverse repurchase agreements, and commerCial paper of the hIghest qualIty WIth a matunty of no longer than 270 days Investments held by the CIty at year end clasSIfied as to credIt nsk are as follows Category 1 - Insured or regIstered, WIth secuntIes held by the CIty'S agent In the CIty'S name Category 2 - Umnsured and unregIstered, WIth secuntIes held by the counterparty's trust department or agent In the CIty'S name Category 3 - Umnsured and unregIstered, WIth securIties held by the counterparty, or by ItS trust department or agent but not In the CIty'S name Category CarryIng Market 1 -L -L Amount Value U S Government Secuntles $ 1,088,212 $ 0 $ 0 $ 1,088,212 $ 1,088,212 Brokered Money Accounts (270) --<l --<l (270) (270) $ 1.087.942 $ 0 $ 0 1,087,942 1,087,942 20 I I I I I I I ,I I ,I I II I I I I I I I CITY OF ALBERTVILLE, MINNESOTA NOTES TO THE FINANCIAL STATEMENTS Year Ended December 31, 1995 (Contmued) NOTE 3 - DETAILED NOTES ON ALL FUNDS AND ACCOUNT GROUPS (Contmued) A Assets (Contmued) 1 Cash and Investments (Includmg Cash EqUIvalents) (Contmued) b Investments - (Contmued) Category 1 -L--1- Carrymg Amount Market Value Total DeposIts (Note 3 A 1 a) Petty Cash $ 1,682,554 $ 1,682,554 50 50 Total Cash and Investments (Includmg Cash EqUIvalents) $ 2.770.546 $ 2.770.546 ThIS amount IS clasSIfied on the combmed balance sheet as follows Cash and Investments (Includmg Cash EqUIvalents) Cash Overdraft Total $ 2,882,939 (112.393) $ 2.770.546 Investments for Deferred CompensatIOn Plan (Note 3 A 2 ) $ 30.266 For the year ended December 31, 1995, the CIty had mterest revenue of $ 186,977 2 Deferred CompensatIOn Plan The CIty offers ItS employees a deferred compensatIOn plan created m accordance wIth Internal Revenue Code SectIOn 457 The plan, avaIlable to all CIty employees, permIts them to defer a portion of theIr salary untIl future years The deferred compensatIOn IS not avaIlable to employees until termmatIOn, retIrement, death or unforeseeable emergency All amounts of compensatIOn deferred under the plan, all property and nghts purchased WIth those amounts, and all mcome attnbutable to those amounts, property or nghts, are (untIl paid or made avaIlable to the employee or other benefiCIary) solely the property and nghts of the CIty, subject only to the nghts of the claims of the CIty'S general credItors PartICIpants' nghts under the plan are equal to the faIr market value of the deferred account for each partICIpant The related assets and lIabIlIties are recorded m the Agency Fund - Deferred CompensatIOn 21 I I I I I I I I I I I I I I I I I I I CITY OF ALBERTVILLE, MINNESOTA NOTES TO THE FINANCIAL STATEMENTS Year Ended December 31, 1995 (Contmued) NOTE 3 - DETAILED NOTES ON ALL FUNDS AND ACCOUNT GROUPS (Contmued) A Assets (Contmued) 2 Deferred CompensatIOn Plan (Contmued) It IS the opImon of the CIty'S legal counsel that the CIty has no lIabIlIty for losses under the plan but the CIty does have the duty of due care that would be reqUIred of an ordmary prudent mvestor The CIty belIeves that It IS unlIkely that It wIll use the assets to satisfy the claIm of general credItors m the future The plan IS managed by trustees other than the CIty 3 Due From Other Governmental Umts The followmg IS a summary of due from other governmental urnts at December 31, 1995 WrIght Fund County General $ 3,423 Debt ServIce 27 .240 Total $ 30.663 4 Note ReceIvable The note receIvable m the Revolvmg Loan SpecIal Revenue Fund represents a loan to a local company for the purpose of economIC development The note orIgmated AprIl 30, 1992, and reqUIres montWy payments of $ 585 42 m years 1-3 at an mterest rate of 1 %, monthly payments of $ 689 06 m years 4-8 at an mterest rate of 3%, monthly payments of $ 691 14 m years 9-13 at an mterest rate of 5%, and monthly payments of $ 594 04 m years 14-18 at an mterest rate of7% The balance at December 31, 1995 was $ 86,255 22 I I I I I I I I I I I I I I I I I I I CITY OF ALBERTVILLE, MINNESOTA NOTES TO THE FINANCIAL STATEMENTS Year Ended December 31, 1995 (Contmued) NOTE 3 - DETAILED NOTES ON ALL FUNDS AND ACCOUNT GROUPS (Contmued) A Assets (Contmued) 5 FIxed Assets (UnaudIted) The followmg IS a summary of changes m general fixed assets (unaudIted) Balance Balance 1-1-95 Purchases DIsposals 12-31-95 Land $ 35,566 $ 0 $ 0 $ 35,566 BUIldmgs 113,409 0 0 113,409 Improvements Other than BUIldmgs 78,169 0 0 78,169 Machmery and EqUIpment 354.916 118.055 --U 472.971 Total $ 582.060 $ 118.055 $ 0 $ 700.115 A summary of propnetary fund type fixed assets at December 31, 1995 IS as follows Enterpnse Fund Land Sewer System EqUIpment Total FIxed Assets Less Accumulated DepreCIatIOn Net FIxed Assets $ 190,269 3,507,443 80.065 3,777,777 (524.920) $ 3.252.857 B LIabIlItIes 1 Defined Benefit PenSIOn Plans - StateWIde a Plan DescnptIon All full-tIme and certam part-tIme employees of the CIty of AlbertvIlle are covered by defined benefit plans admInIstered by the PublIc Employees RetIrement ASSOCIatIOn of Mmnesota (PERA) PERA admmIsters the PublIc Employees RetIrement Fund (PERF) whIch IS a cost-shanng, multIple-employer retIrement plan ThIS plan IS establIshed and admmIstered m accordance WIth MInnesota Statutes, Chapters 353 and 356 23 I I I I I I I I I I I I I I I I I I I CITY OF ALBERTVILLE, MINNESOTA NOTES TO THE FINANCIAL STATEMENTS Year Ended December 31, 1995 (Contmued) NOTE 3 - DETAILED NOTES ON ALL FUNDS AND ACCOUNT GROUPS (Contmued) B LIablhtIes (Contmued) 1 Defined Benefit PensIOn Plans - StateWide (Contmued) a Plan DescnptIOn (Contmued) PERF members belong to eIther the Coordmated Plan or the BasIC Plan Coordmated Plan members are covered by SOCIal Secunty and BasIC Plan members are not All new members must partIcIpate m the Coordmated Plan The payroll for employees covered by PERF for the year ended December 31, 1995 was $ 110,999, the CIty'S total payroll was $ 137,295 PERA proVIdes retIrement benefits as well as dlsablhty benefits to members, and benefits to survIvors upon death of ehglble members Benefits are estabhshed by State Statute, and vest after three years of credIted servIce The defined 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 termmatIOn of servIce Two methods are used to compute benefits for Coordmated and BasIC Plan members The retmng member receIves the higher of 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 percent of average salary for each of the first 10 years of servIce and 25 percent for each remalmng year For a Coordmated Plan member, the annUity accrual rate IS 1 percent of average salary for each of the first 10 years and 1 5 percent for each remammg year Usmg Method 2, the annUity accrual rate IS 25 percent of average salary for BasIC Plan members and 1 5 percent for Coordmated Plan members For PERF members whose annUity IS calculated usmg Method 1, a full annUity IS avaIlable when age plus years of servIce equal 90 A reduced retIrement annUity IS also avaIlable to ehglble members seekmg early retIrement There are dIfferent types of annUities avaIlable to members upon retIrement A normal annUity IS a hfetIme annUity that ceases upon the death of the retiree No survIvor annUity IS payable There are also vanous types of Jomt and survIvor annUity optIOns avaIlable whIch Will reduce the monthly normal annUity amount, because the annUity IS payable over Jomt hves Members may also leave theIr contnbutIOns m the fund upon termmatIOn of pubhc servIce, m order to quahfy for a deferred annUity at retIrement age Refunds of contnbutIOns are aVailable at any tIme to members who leave pubhc servIce, but before retirement benefits begm 24 I I I I I I I I I I I I I I I I I I I CITY OF ALBERTVILLE, MINNESOTA NOTES TO THE FINANCIAL STATEMENTS Year Ended December 31, 1995 (Contmued) NOTE 3 - DETAILED NOTES ON ALL FUNDS AND ACCOUNT GROUPS (Contmued) B LIabIlIties (Contmued) 1 Defined Benefit PensIOn Plans - StatewIde (Contmued) a Plan DescnptIOn (Contmued) The benefit prOVISIons stated m the preVIOUS paragraphs of thIS sectIOn are current provIsIOns and apply to active plan partIcIpants Vested, termmated employees who are entitled to benefits but are not recelvmg them yet, are bound by the provIsIons m effect at the time they last termmated theIr publIc servIce b ContnbutIOns ReqUIred and ContnbutIOns Made Mmnesota Statutes Chapter 353 sets the rates for employer and employee contnbutIOns The CIty makes annual contnbutIOns to the penSIOn plans equal to the amount reqUIred by state statutes Accordmg to Mmnesota Statutes Chapter 356 215, Subd 4(g), the date of full fundmg reqUIred for the PERF IS July 1, 2020 As part of the annual actuarial valuatIOn, PERA's actuary determmes the sufficIency of the statutory contnbutIOn rates towards meetmg the reqUIred full fundmg deadlme The actuary compares the actual contnbutIOn rate to a "reqUIred" contnbutIOn rate The reqUIred contnbutIOn rate consIsts of (a) normal costs based on entry age normal cost methods, (b) a supplemental contnbutIOn for amortlzmg any unfunded actuanal accrued lIabIlIty by the date reqUIred for full fundmg, and (c) an allowance for admmlstratIve expenses Current combmed statutory contnbutIOn rates and actuarIally reqUIred contnbutIOn rates for the plans are as follows PERF (A Blended Rate for both the BaSIC and Coordmated Plans) Statutory Rates Employees Employer ReqUIred Rates * 431% 460% 976% * The recommended rates scheduled above represent the reqUIred rates for fiscal year 1995 contnbutIOns as reported m the July 1, 1994 actuanal valuatIOn reports Total contnbutIOns made by the CIty durmg fiscal year 1995 were RetIrement Plan Amounts Employees Employer Percentage of Covered Payroll Employees Employer PERF $ 4.695 $ 4.972 423% 448% The CIty'S contnbutIOn for the year ended June 30, 1995 to the PERF represented 004% of total contnbutIOns reqUIred of all partIclpatmg entitles 25 I I I I I I I I I I I I I I r CITY OF ALBERTVILLE, MINNESOTA NOTES TO THE FINANCIAL STATEMENTS Year Ended December 31, 1995 (Contmued) NOTE 3 - DETAILED NOTES ON ALL FUNDS AND ACCOIiNT GROUPS (ContInued) B LIabIlItIes (Contmued) 1 Defined Benefit PenSIOn Plans - StateWIde (Contmued) c Fundmg Status and Progress 1 PenSIOn Benefit OblIgatIQn The "penSIOn benefit oblIgatIOn" IS a standardIzed dIsclosure measure of the present value of penSIOn benefits, adjusted for the effects of projected salary mcreases and step-rate benefits, estImated to be payable m the future as a result of employee servIce to date The measure IS the actuarIal present value of credIted projected benefits and IS mtended to help users assess PERA's fundmg status on a gomg-concem basIS, assess progress tnade m 3CCUlDulatIng suffiCIent assets to pay benefits when due, and make compansons lIIDong Pubhc Employee Retuement SysteIns and partICIpatIng employers The measure IS mdependent of the actuanal fundtng method used to detemune reqUIred contnbutIOns, whIch IS dIScussed m Note B PERA does not IDake separate measurements of assets and pensIOn benefit oblIgatIOn amounts for mdIvIdual partIcIpatmg employers The pensIOn benefit obhgalIons for the PERF as of June 30, 1995 are reported on the next page PenSIOn Benefit OblIgatIOn (m thousands) Total PenSIOn Benefit OblIgatIOn Net Assets AvaIlable for Benefits, At Cost PERF Unfunded PenSIOn Benefit OblIgatIOn $ 5,994,492 5.074.357 $ 920.135 Net Assets AvaIlable for Benefits, At Market $ 5.266.688 26 I I I I I I I I I I I I I I I I I I I CITY OF ALBERTVILLE, MINNESOTA NOTES TO THE FINANCIAL STATEMENTS Year Ended December 31, 1995 (ContInued) NOTE 3 - DETAILED NOTES ON ALL FUNDS AND ACCOUNT GROUPS (ContInued) B LiabIlIties (ContInued) 1 Defined Benefit PensIOn Plans - StateWIde (ContInued) C FundIn~ Status and Pro~ress (ContInued) 1 PensIOn Benefit OblI~atIOn (ContInued) The pensIOn benefit oblIgatIOn was determIned as part of an actuarIal valuation at July 1, 1995 For the PERF, sIgmficant actuarIal assumptIOns used In the calculatIOn of the penSIOn benefit oblIgatIOn Include (a) a rate of return on the Investment of present and future assets of 8 5 percent per year, compounded annually, prIor to retIrement, and 5 percent per year, compounded annually, follOWIng retirement, (b) projected salary Increases taken from an age related table whIch Incorporates a 5 percent base Inflation assumption, (c) payroll growth at 6 percent per year, consIstIng of 5 percent for InflatIOn and I percent due to growth In group SIze, (d) post-retIrement benefit Increases that are accounted for by the 5 percent rate of return assumptIOn follOWIng retIrement, and (e) mortalIty rates based on the 1983 Group AnnUIty MortalIty Table set forward one year for retIred members and set back five years for each actIve member 2 Chan~es In ActuarIal Assumptions and Methods SInce the July 1, 1994 actuanal valuatIOn, there were no changes In actuanal assumptIOns of the PERF whIch Impacted fundIng costs 3 Chan~es In Benefit ProvIsIOns The 1995 legIslatIve seSSIOn dId not Include any benefit Improvements whIch would Impact fundIng costs for the PERF d Ten- Year HIstorIcal Trend InformatIon Ten-year hIstorIcal trend InfOrmatIOn IS presented In PERA's ComprehensIve Annual FInanCIal Report for the fiscal year ended June 30, 1995 ThIS InfOrmatIOn IS useful In assessIng the penSIOn plan's accumulatIOn of suffiCIent assets to pay pensIOn benefits as they become due 27 I I I I I I I I I I I I I I I I I I I CITY OF ALBERTVILLE, MINNESOTA NOTES TO THE FINANCIAL STATEMENTS Year Ended December 31, 1995 (Contmued) NOTE 3 - DETAILED NOTES ON ALL FUNDS AND ACCOUNT GROUPS (Contmued) B LIabIlIties (Contmued) 1 Defined Benefit PensIOn Plans - StateWIde (Contmued) e Related Party Investments As of June 30, 1995 and for the fiscal year then ended, PERA held no secuntIes Issued by the CIty or other related partIes 2 Defined ContrIbutIOn Lump Sum ServIce PensIOn Plan - Volunteer Flrefillhters RelIef AssocIatIOn a Plan DescnptIon The CIty contnbutes to the AlbertvIlle FIre Department RelIef AssocIatIOn ("ASSOCIatIOn"), a smgle-employer publIc employee retirement system that acts as a common mvestment and admlmstrator for the CIty'S firefighters Volunteer firefighters of the CIty are members of the AlbertvIlle Fife Department RelIef AssocIatIOn Members are elIgIble for servIce pensIOns and dIsabIlIty pensIOns at a prorata amount after 20 years of servIce and after amvmg at age 50 PensIOn benefits are determmed by multIplymg the accrued lIabIlIty, as set forth m Mmnesota Statute 69 772, SubdIVISIon 2, by the ratio of the lump sum servIce pensIOn amount prOVIded m the bylaws of the AssocIatIOn to a servIce pensIOn of $ 100 per year of servIce As of December 31, 1995, the bylaws prOVIded for an amount of$ 450 per year of servIce The bylaws do prOVIde for early vestmg These benefit prOVIsIons and all other reqUIrements are conSIstent With enablmg state statutes The CIty leVIes property taxes at the dIrectIOn of and for the benefit of the fire relIef assOCIatIOn and passes through state aids allocated to the plan, all m accordance WIth enablmg state statutes b Related Party Investments Dunng 1995 and as of December 31, 1995, the assOCIatIOn held no secuntIes Issued by the CIty or other related partIes 28 I I I I I I I I I I I I I I I I I I I CITY OF ALBERTVILLE, MINNESOTA NOTES TO THE FINANCIAL STATEMENTS Year Ended December 31, 1995 (Contmued) NOTE 3 - DETAILED NOTES ON ALL FUNDS AND ACCOUNT GROUPS (Contmued) B LIabIlIties (Contmued) 2 Defined ContrIbutIOn Lump Sum ServIce PensIOn Plan - Volunteer FIrefighters RelIef AssocIatIOn (Contmued) c Fundmg Status and Progress The amount shown below as the "pensIOn benefit oblIgatIOn" IS computed m accordance WIth Mmnesota Statutes usmg the formula as explamed above PenSIOn Benefit OblIgatIOn Net Assets AvaIlable for Benefits at Market Unfunded PensIOn Benefit OblIgatIOn $ 110,049 (71.007) $ 39.042 d ContnbutIOns ReqUIred and ContnbutIOns Made FmancIaI reqUIrements of the relIef assOCIatIOn are determmed m accordance WIth Mmnesota Statutes as follows Normal Cost for Next Year (Increase m PensIOn Benefit OblIgation) Plus Estimated Expenses for Next Year and 10% of Any DefiCIts Less AnticIpated Income Next Year and 10% of Any Surplus The CIty made contnbutIOns to the Fuefighters RelIef ASSOCiatIOn dunng the year ended December 31, 1995 of$ 5,000 3 Deferred Revenue Deferred revenues at December 31, 1995 are summarIzed as follows 29 I I I I I I I I I I I I I I I I I I I CITY OF ALBERTVILLE, MINNESOTA NOTES TO THE FINANCIAL STATEMENTS Year Ended December 31, 1995 (ContInued) NOTE 3 - DETAILED NOTES ON ALL FUNDS AND ACCOUNT GROUPS (ContInued) B LiabIlItIes (ContInued) 3 Deferred Revenue (ContInued) SpecIal Debt General Revenue ServIce Total Taxes ReceIvable - DelInquent $ 3,813 $ 0 $ 828 $ 4,641 Special Assessments ReceIvable - Deferred 0 0 842,156 842,156 DelInquent 0 0 18,855 18,855 Loans ReceIvable --.U 86.255 0 86.255 Total $ 3.813 $ 86.255 $ 861.839 $ 951.907 4 Long-Term Debt The followmg IS a summary of bond transactIOns for the year ended December 31, 1995 General OblIgatIOn General SpecIal Tax OblIgatIOn Revenue Assessment Increment Total Balance - January 1 $ 180,000 $ 1,625,000 $ 2,396,000 $ 170,000 $ 4,371,000 AddItIons 0 0 0 0 0 RetIrements (15.000) (110.157) (288.000) (40.000) (453.157) Balance - December 31 $ 165.000 $ 1.514.843 $ 2.108.000 $ 130.000 $ 3.917.843 Bonds outstandIng at December 31, 1995, Include the follOWIng Issues General OblIgatIOn Bonds $ 175,000 General ObhgatIOn RefundIng Bonds, Senes 1993, due In annual Installments of$ 15,000 to $ 20,000 through March 3, 2004, Interest at 300 to 5 00 percent OutstandIng December 31. 1995 $ 165.000 30 I I I I I I I I I I I I I I I I I I I CITY OF ALBERTVILLE, MINNESOTA NOTES TO THE FINANCIAL STATEMENTS Year Ended December 31, 1995 (Contmued) .. NOTE 3 - DETAILED NOTES ON ALL FUNDS AND ACCOUNT GROUPS (Contmued) B LIabIhtIes (Contmued) 4 Long-Term Debt (Contmued) Revenue Bonds $ 210,000 Sewer arld Water Revenue Bonds of 1988, due In annual mstallments of$ 10,000 to $ 25,000 through December 1,2000, mterest at 5 50 to 740 percent Mmnesota Pubhc FacIlIties Authonty LOarl, due In annual mstallments of$ 26,728 to $ 49,149 through August 20,2014, mterest at 332 percent Total Revenue Bonds General ObhgatIOn Special Assessment Bonds $ 505,000 Advarlce Refundmg arld Improvement Bond of 1988, due m annual mstallments of $ 15,000 to $ 60,000 through February 1,2000, mterest at 6 35 to 7 25 percent $ 215,000 Refundmg Bonds of 1989, due m annual Installments of$ 5,000 to $ 25,000 through September 1, 2003, Interest at 7 00 to 7 75 percent $ 435,000 Improvement Bonds of 1990, due m annual mstallments of$ 25,000 to $ 45,000 through December 1, 2000, mterest at 6 00 to 6 80 percent $ 330,000 General ObhgatIOn Improvement Bonds, Senes 1991A, due m annual mstallments of$ 33,000 through September 1, 2001, mterest at 635 percent $ 95,000 General ObhgatIOn Improvement Bonds, Senes 1991B, due m annual mstallments of$ 5,000 to $ 10,000 through August 1, 2001, mterest at 7 00 percent OutstarldIng December 31. 1995 $ 115,000 1.399.843 $ 1.514.843 $ 210,000 145,000 210,000 198,000 60,000 31 I I I I I I I I I I I I I I I I I I I CITY OF ALBERTVILLE, MINNESOTA NOTES TO THE FINANCIAL STATEMENTS Year Ended December 31, 1995 (Contmued) NOTE 3 - DETAILED NOTES ON ALL FUNDS AND ACCOUNT GROUPS (Contmued) B LiabIlItIes (Contmued) 4 Long- Term Debt (Contmued) General OblIgatIon SpecIal Assessment Bonds (Contmued) $ 115,000 General OblIgatIOn Refundmg Improvement Bonds of 1992, due m annual InStallments of $ 10,000 to $ 15,000 through February 1, 1998, mterest at 5 50 percent $ 350,000 General OblIgatIOn Improvement Bonds, Senes 1992A, due m annual mstallments of$ 15,000 to $ 35,000 through December 30, 2004, mterest at 570 percent $ 675,000 General OblIgatIOn Improvement Refundmg Bonds, Senes 1993A, due m annual mstallments of $ 20,000 to $ 95,000 through February 1,2006, mterest at 3 40 to 5 75 percent $ 245,000 General OblIgatIOn Improvement Bonds, Senes 1993B, due m annual mstallments of $ 80,000 to $ 85,000 through February 1, 1998, mterest at 340 to 3 90 percent $ 130,000 General OblIgatIon Improvement Bonds, Senes 1994A, due m annual mstallments of $ 40,000 to $ 45,000 through February 1, 1998, mterest at 5 45 percent Total General OblIgatIOn Special Assessment Bonds General OblIgatIon Tax Increment Bonds $ 270,000 Tax Increment Bonds of 1990, due m annual mstallments of $ 30,000 to $ 45,000 through December 1, 1998, mterest at 6 10 to 6 70 percent Outstandmg December 31. 1995 $ 90,000 275,000 545,000 245,000 130.000 $ 2.108.000 $ 130.000 32 I I I I I I I I I I I I I I I I I I I CITY OF ALBERTVILLE, MINNESOTA NOTES TO THE FINANCIAL STATEMENTS Year Ended December 31, 1995 (ContInued) NOTE 3 - DETAILED NOTES ON ALL FUNDS AND ACCOUNT GROUPS (ContInued) B LIabIlItles (ContInued) 4 Long-Term Debt (ContInued) The annual reqUIrements to amortIze all bonded debt outstandIng as of December 31, 1995, IncludIng Interest payments of $ 886,224 are General OblIgatIOn Year EndIng General Special Tax December 31 OblIgatIOn Revenue Assessment Increment Total 1996 $ 22,095 $ 128,278 $ 529,381 $ 48,585 $ 728,339 1997 21,551 126,858 563,051 50,985 762,445 1998 20,970 130,418 488,980 48,015 688,383 1999 25,245 128,605 285,510 0 439,360 2000 24,370 126,780 261,297 0 412,447 Thereafter 87.940 1.399.027 286.126 0 1.773.093 Total $ 202.171 $ 2.039.966 $ 2.414.345 $ 147.585 $ 4.804.067 C Fund EqUIty Fund eqUIty balances are classIfied as follows to reflect the lImItatIOns and restnctIOns of the respectlve funds 1 Fund Balance - Fund balance IS compnsed of the follOWIng components Reserved - Reserved for CapItal Outlay Reserved for OperatIng CapItal Reserved for Debt ServIce Unreserved - DesIgnated for CapItal Outlay UndesIgnated Total Fund Balance Special Debt CapItal General Revenue ServIce Projects Total $ 209,796 $ o $ o $ o $ 209,796 336,527 0 0 0 336,527 0 0 1,379,517 0 1,379,517 0 0 0 280,734 280,734 (90.744) 602.234 0 (38.213) 473.277 $ 455.579 $ 602.234 $ 1.379.517 $ 242.521 $ 2.679.851 33 I I I I I I I I I I I I I I I I I I I CITY OF ALBERTVILLE, MINNESOTA NOTES TO THE FINANCIAL STATEMENTS Year Ended December 31, 1995 (Contmued) NOTE 3 - DETAILED NOTES ON ALL FUNDS AND ACCOUNT GROUPS (Contmued) C Fund EqUity (Contmued) 2 Retamed Earmngs - Reserved retamed earmngs at December 31, 1995, IS as follows Enteqmse Reserved for Operatmg CapItal $ 71.000 3 Contnbuted CapItal - Contnbuted capItal m the enterpnse funds represents fixed assets WhICh were purchased by other funds and transferred to the enterpnse funds Changes m contnbuted capItal for the year are as follows Contnbuted CapIta1- January 1, 1995 Add Assets Contnbuted Durmg 1995 $ 1,823,591 o Contnbuted CapItal - December 31, 1995 $ 1.823.591 NOTE 4 - SEGMENT INFORMA nON The CIty mamtams a Wastewater Treatment FacIhty Enterpnse Fund Segment mformatIon for the year ended December 31, 1995 IS as follows Wastewater Treatment FacIhty Operatmg Revenues $ 237,535 75,143 92,197 Depreciation Expense Operatmg Income Net Income (Loss) (44,582) 147,728 Net Workmg CapItal 34 I I I I I I I I I I I I I I I I I I I CITY OF ALBERTVILLE, MINNESOTA NOTES TO THE FINANCIAL STATEMENTS Year Ended December 31, 1995 (Contmued) NOTE 4 - SEGMENT INFORMATION (Contmued) Wastewater Treatment FacIlIty FIxed Asset Purchases $ 74,025 680 FIxed Asset DISpOSalS Total Assets 3,403,867 1,399,843 2,000,742 Debt Outstandmg, Net Total EqUIty NOTE 5 - TAX INCREMENT FINANCING The CIty of AlbertvIlle IS the admmIstenng authonty for the followmg tax mcrement financmg dIstncts Name ofDIStnCt EconomIc Development Tax Increment Fmancmg DIstnct #5 Type of DIStrICt Authonzmg Law Year EstablIshed DuratIon of DIstnct EconomIc Development Mmnesota T I F Act, SectIOns 469 174 to 469 179 1989 10 years or no more than eIght years from the receIpt of the first mcrement Ongmal Net Tax CapacIty Current Net Tax CapacIty Captured Net Tax CapacIty- Retamed by CIty $ 295 70.160 $ 69.865 Type of Bonds Issued General OblIgatIOn Tax Increment Total Bonds Issued Amounts Redeemed $ 270,000 (140.000) $ 130.000 Outstandmg Bonds at December 31, 1995 35 I I I I I I I I I I I I I I I I I I I CITY OF ALBERTVILLE, MINNESOTA NOTES TO THE FINANCIAL STATEMENTS Year Ended December 31, 1995 (Contmued) NOTE 5 - TAX INCREMENT FINANCING (Contmued) Name of DIStrIct EconomIc Development Tax Increment Fmancmg DIStrICt #6 Type of DIStrICt Authonzmg Law Year EstablIshed DuratIOn of DIStrICt EconomIc Development MInnesota T I F Act, Chapter 469 174 1989 1 0 Years or no more than eIght years from the receIpt of the first mcrement Ongmal Tax CapacIty Current Tax CapacIty Captured Tax CapacIty - Retamed by CIty $ 265 33,963 $ 33.698 Type of Notes Issued "Pay as You Go" - The CIty pays the developer for tax mcrements receIved m the current year NOTE 6 - STATEMENT OF CASH FLOWS Durmg 1995 the CIty had a transactIOn m ItS wastewater treatment facIlIty enterpnse fund whIch affected recogmzed assets, but dId not result m cash receIpts or cash payments FIxed assets m the amount of $ 74,025 were financed by a long-term bond payable NOTE 7 - SUBSEQUENT EVENT On February 22, 1996, the CIty receIved notIce of a settlement reached WIth PIper Jaffray In connectIOn WIth a class actIon lawsUIt mvolvmg the PIper Funds, Inc InstItutIOnal Government Income PortfolIo fund On February 22, the CIty receIved a check for $ 10,253 whIch represents about 25 percent of the pnncIpal amount the CIty WIll receIve The CIty WIll then receIve a payment m late 1996 or early 1997 whIch wIll represent about 50 percent of the pnncIpal amount The last payments the CIty WIll receIve WIll be m August 1997 and August 1998 WhICh wIll each represent one-half of the remammg recovery In addItIon to the pnncIpal amount, all remammg payments WIll mclude mterest as measured from January 17, 1996 36 I I I I I I I I I I I I I I I I I I I CITY OF ALBERTVILLE, MINNESOTA THE GENERAL FUND The General Fund accounts for all revenues and expendItures of a governmental umt wmch are not accounted for m other funds, and It IS usually the largest and most Important accountmg activIty for state and local governments It normally receIves a greater varIety and number of taxes and other general revenues than any other fund ThIS fund has flowmg mto It such revenues as general property taxes, lIcense and permIts, fines and penalties, rents, charges for current servIces, state-shared taxes, and mterest earmngs The fund's resources also finance a WIder range of actiVIties than any other fund Most of the current operatIOns of governmental unItS Will be financed from thIS fund I I I I I I I I I I I I I I I I I I I CITY OF ALBERTVILLE, MINNESOTA GENERAL FUND BALANCE SHEET December 31, 1995 ASSETS Cash and Investments Taxes ReceIvable - DelInquent Interest ReceIvable Due from Other Governmental Umts $ 490,619 3,813 26,873 3,423 524,728 TOTAL ASSETS $ LIABILITIES AND FUND BALANCE LiabIlIties Accounts Payable Contracts Payable Deferred Revenue Total LiabIlIties TOTAL LIABILITIES AND FUND BALANCE $ 32,336 33,000 3,813 69,149 209,796 336,527 (90,744) 455,579 $ 524,728 Fund Balance Reserved for CapItal Outlay Reserved for Operatmg CapItal Umeserved - UndesIgnated Total Fund Balance 37 I I I I I I I I I I I I I I I I I I I CITY OF ALBERTVILLE, MINNESOTA GENERAL FUND STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCE _ BUDGET AND ACTUAL Year Ended December 31, 1995 Over (Under) Budget Actual Budget REVENUES Taxes - General Property Tax $ 286,486 $ 298,727 $ 12,241 Tax Increments 0 33,436 33,436 Total Taxes 286,486 332,163 45,677 LIcenses and PermIts - LIquor and Beer LIcenses 8,300 8,600 300 BUIldmg PermIts 25,000 67,232 42,232 Busmess PermIts 1,750 320 (1,430) SIgn PermIts 1,800 1,555 (245) Other LIcenses 150 40 (110) Total LIcenses and PermIts 37,000 77,747 40,747 Intergovernmental- Local Government AId 56,858 56,858 0 HACA 138,223 138,223 0 FIre AId 0 7,899 7,899 PolIce AId 3,000 3,988 988 Other State AIds 4,000 5,459 1,459 Total Intergovernmental Revenue 202,081 212,427 10,346 Charges for ServIces - FIre ProtectIOn Fees 33,373 33,373 0 SpecIal Assessment Searches 800 360 (440) Park Rental Fees 3,000 2,100 (900) Storm Sewer Fees and PenaltIes 20,200 23,110 2,910 Other Charges for SerVIces 12,000 11,579 (421) Total Charges for ServIces 69,373 70,522 1,149 Fmes and ForfeIts 100 126 26 MIscellaneous Revenue - Interest 0 44,640 44,640 Sale of General FIxed Assets 0 171 171 Lease Payments 950 950 0 Loan Repayments 0 57,500 57,500 Other Revenues 0 27,709 27,709 Total MIscellaneous 950 130,970 130,020 TOTAL REVENUES 595,990 823,955 227,965 38 I I I I I I I I I I I I I I I I I I I CITY OF ALBERTVILLE, MINNESOTA GENERAL FUND STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCE _ BUDGET AND ACTUAL Year Ended December 31, 1995 (Contmued) Over (Under) Budget Actual Budget EXPENDITURES General Government Mayor and Councll - SalarIes and Benefits $ 10,175 $ 9,871 $ (304) Workers CompensatIOn Insurance 400 114 (286) Other Insurance 4,000 4,939 939 Prmtmg and PublIcations 2,000 3,057 1,057 Travel 200 0 (200) SupplIes 300 197 (103) Dues and SUbSCrIptIOns 800 851 51 Total Mayor and Councll 17,875 19,029 1,154 CIty Clerk-Treasurer - SalarIes and Benefits 94,130 84,781 (9,349) Workers CompensatIon Insurance 350 576 226 Accountmg and AudItmg 5,100 4,400 (700) Contracted ServIces 5,700 3,568 (2,132) Repairs and Mamtenance 1,000 129 (871 ) EqUIpment Rental 600 698 98 Other Insurance 2,750 3,978 1,228 Travel 1,000 364 (636) SupplIes 6,500 5,569 (931 ) Dues and SubscnptlOns 1,500 1,477 (23) CapItal Outlay 4,700 1,630 (3,070) Total CIty Clerk-Treasurer 123,330 107,170 (16,160) Assessor - Contracted ServIces 5,000 5,070 70 Legal- Purchased ServIces 20,000 27,075 7,075 EconomIc Development - Payment to Developer 0 33,436 33,436 SalarIes and Benefits 1,800 2,219 419 SupplIes 700 88 (612) Total EconomIc Development 2,500 35,743 33,243 39 I I I I I I I I I I I I I I I I I I I CITY OF ALBERTVILLE, MINNESOTA GENERAL FUND STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCE- BUDGET AND ACTUAL Year Ended December 31, 1995 (Contmued) EXPENDITURES (Contmued) General Government (Contmued) Planmng and Zomng - SalarIes and Benefits Contracted ServIces Travel SupplIes Total Planmng and Zonmg Budget Actual Over (Under) Budget Total General Government $ 2,000 $ 1,077 $ (923) 5,000 43,208 38,208 100 0 (100) 700 0 (700) 7,800 44,285 36,485 22,103 26,404 4,301 1,208 2,334 1,126 1,500 942 (558) 24,811 29,680 4,869 600 540 (60) 1,500 3,510 2,010 3,500 0 (3,500) 3,500 3,830 330 1,500 1,572 72 6,000 4,769 (1,231 ) 7,500 4,230 (3,270) 24,100 18,451 (5,649) 225,416 286,503 61,087 Shop and Mamtenance - SalarIes and Benefits Workers CompensatIOn Insurance SupplIes Total Shop and Mamtenance General Government BUlldmgs - Refuse DIsposal RepaIrs and Mamtenance Insurance Telephone SupplIes UtIhtIes CapItal Outlay Total BUlldmg and Plant Pubhc Safety PolIce Protection - Contracted ServIces FIre Protection - SalarIes and Benefits Workers CompensatIOn Insurance PenSIOn Fund ContrIbutIOn Payment of FIre AId Trammg PhYSIcals Audit - FIre Rehef AssocIatIOn RepaIrs and Mamtenance 46,720 46,720 0 12,400 3,395 (9,005) 2,850 1,833 (1,017) 5,000 5,000 0 0 7,899 7,899 5,350 3,977 (1,373) 500 546 46 1,000 1,432 432 1,000 2,422 1,422 40 I I I I I I I I I I I I I I I I I I I CITY OF ALBERTVILLE, MINNESOTA GENERAL FUND STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCE _ BUDGET AND ACTUAL Year Ended December 31, 1995 (Contmued) EXPENDITURES (Contmued) Pubhc Safety (Contmued) Fire Protection - (Contmued) Travel Supphes Utlhtles Dues and SubscnptlOns Capital Outlay Total Fire Protection Budget Actual Over (Under) Budget Total Pubhc Safety $ 1,500 $ 1,960 $ 460 2,000 2,798 798 1,300 2,220 920 100 25 (75) 68,600 84,918 16,318 101,600 118,425 16,825 0 48,389 48,389 1,750 2,505 755 150,070 216,039 65,969 BuIldmg InspectIOn - Contracted Services Ammal Control - Contracted Services Pubhc Works Engmeer - Purchased Services Streets and Highways - Salanes and Benefits Workers CompensatIOn Insurance Repairs and Mamtenance Ice and Snow Removal Sand and Gravel Seal Coatmg Supphes Gas and 011 Capital Outlay Total Highway and Streets 15,000 27,968 12,968 23,003 12,987 (10,016) 1,208 696 (512) 19,000 18,214 (786) 3,800 1,966 (1,834) 500 632 132 2,000 8,000 6,000 1,800 889 (911) 2,000 849 (1,151) 20,450 1,763 (18,687) 73,761 45,996 (27,765) 26,000 23,883 (2,117) 10,109 10,704 595 124,870 108,551 (16,319) 41 Street Llghtmg - Electnclty RecyclIng - Contracted Services Total PublIc Works I I I I I I I I I I I I I I I I I I I CITY OF ALBERTVILLE, MINNESOTA GENERAL FUND STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCE - BUDGET AND ACTUAL Year Ended December 31, 1995 (Contmued) Over (Under) Budget Actual Budget EXPENDITURES (Contmued) Pubhc Works (Contmued) Parks and RecreatIon - SalarIes and Benefits $ 10,534 $ 8,919 $ (1,615) Workers CompensatIon Insurance 600 866 266 Refuse DIsposal 800 540 (260) RepaIrs and Mamtenance 2,000 3,678 1,678 EqUIpment Rental 800 703 (97) Other Insurance 2,000 3,978 1,978 Telephone 900 556 (344) Supphes 2,400 1,805 (595) UtIlItIes 3,850 3,459 (391) Dues and SUbSCrIptIOns 750 750 0 Fnendly CIty Days DonatIons 3,000 3,000 0 CapItal Outlay 8,000 500 (7,500) Total Parks and RecreatIOn 35,634 28,754 (6,880) MIscellaneous - Unemployment Insurance 0 3,625 3,625 TOTAL EXPENDITURES 535,990 643,472 107,482 EXCESS OF REVENUES OVER EXPENDITURES $ 60,000 180,483 $ 120,483 FUND BALANCE, January 1 275,096 FUND BALANCE, December 31 $ 455,579 42 CITY OF ALBERTVILLE, MINNESOTA SPECIAL REVENUE FUNDS COMBINING BALANCE SHEET December 31, 1995 CommunIty Revolvmg Park RecreatIOn Loan Fund Fund Fund ASSETS Cash and Investments $ 46,207 $ 43,045 $ 42,475 Notes ReceIvable 0 0 86,255 TOTAL ASSETS $ 46,207 $ 43,045 $ 128,730 LIABILITIES AND FUND BALANCE Deferred Revenue $ 0 $ 0 $ 86,255 Total LIabIlItIes 0 0 86,255 Fund Balance Unreserved - UndesIgnated 46,207 43,045 42,475 Total Fund Balance 46,207 43,045 42,475 TOTAL LIABILITIES AND FUND BALANCE $ 46,207 $ 43,045 $ 128,730 I I I I I I I I I I I I I I I I I I I - CITY OF ALBERTVILLE, MINNESOTA SPECIAL REVENUE FUNDS COMBINING STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE Year Ended December 31, 1995 Commumty Park RecreatIOn Fund Fund REVENUES MIscellaneous - Interest Loan Repayments Total Revenues $ 2,948 $ o 2,948 EXPENDITURES Culture and RecreatIOn - Planmng Contract ServIces ConstructIOn ServIces Total ExpendItures 642 1,322 1,964 984 EXCESS OF REVENUES OVER EXPENDITURES OTHER FINANCING SOURCES Operatmg Transfers In o EXCESS OF REVENUES AND OTHER SOURCES OVER EXPENDITURES 984 FUND BALANCE - January 1 45,223 46,207 $ FUND BALANCE - December 31 $ 2,689 o 2,689 2,689 2,689 40,356 43,045 Revolvmg Loan Fund I I I I I I I I I I I I I I I I I I I $ 2,408 7,854 10,262 o o o o o o 10,262 o o 10,262 32,213 $ 42,475 1988 1977 1988 Refundmg Bonds Bonds Bonds ASSETS Cash and Investments $ 5,781 $ 12,637 $ 0 Taxes ReceIvable - DelInquent 0 0 0 SpecIal Assessments ReceIvable - Deferred 0 0 55,610 DelInquent 0 0 3,343 Due from Other Governmental Umts 0 0 0 TOTAL ASSETS $ 5,781 $ 12,637 $ 58,953 LIABILITIES AND FUND BALANCE LIabIlItIes Cash Overdraft $ 0 $ 0 $ 17,867 Deferred Revenue 0 0 58,953 Total LiabIlItIes 0 0 76,820 Fund Balance Reserved for Debt ServIce 5,781 12,637 (17,867) TOTAL LIABILITIES AND FUND BALANCE $ 5,781 $ 12,637 $ 58,953 I I I I I I I I I I I I I I I I I I I CITY OF ALBERTVILLE, MINNESOTA DEBT SERVICE FUNDS COMBINING BALANCE SHEET December 31, 1995 I I I J \0(, \ \'; t I A ......... 1992 1989 1990 1991A 1991 B Sewer I Refundmg Improvement Improvement Improvement Trunk Bonds Bond Fund Bond Fund Bond Fund Bond Fund I $ 92,369 $ 116,316 $ 219,937 $ 128,676 $ 80,290 118 154 0 0 0 I 25,894 29,498 0 0 166,254 241 0 0 0 0 97 2,224 0 0 0 I $ 118,719 $ 148,192 $ 219,937 $ 128,676 $ 246,544 I I $ 0 $ 0 $ 0 $ 0 $ 0 26,253 29,652 0 0 166,254 26,253 29,652 0 0 166,254 I 92,466 118,540 219,937 128,676 80,290 I $ 118,719 $ 148,192 $ 219,937 $ 128,676 $ 246,544 I (Contmued ) I I I I I 45 I CITY OF ALBERTVILLE, MINNESOTA DEBT SERVICE FUNDS COMBINING BALANCE SHEET December 31, 1995 (Contmued) GO GO Improvement GO Refundmg & Refundmg Improvement Improvement Bond Bond Fund Fund Fund ASSETS Cash and Investments $ 0 $ 210,177 $ 159,973 Taxes Receivable - DelInquent 65 115 0 SpeCial Assessments Receivable - Deferred 30,787 341,648 75,665 DelInquent 453 14,818 0 Due from Other Governmental Umts 1,224 23,386 0 TOTAL ASSETS $ 32,529 $ 590,144 $ 235,638 LIABILITIES AND FUND BALANCE LiabilIties Cash Overdraft $ 21,085 $ 0 $ 0 Deferred Revenue 31,305 356,581 75,665 Total LiabilIties 52,390 356,581 75,665 Fund Balance Reserved for Debt Service (19,861) 233,563 159,973 TOTAL LIABILITIES AND FUND BALANCE $ 32,529 $ 590,144 $ 235,638 I I I I I I I I I I I I I I I I I I I I I I I 1988 I Westwmd ClImc Sewer and Tax 1990 3rd BUIldmg Water Increment Tax Increment UtIlItIes Bond Revenue Fmance Fmancmg Totals I Fund Fund Bonds Bonds Bonds 1995 $ 52,083 $ 6,280 $ 0 $ 202,698 $ 122,372 $ 1,409,589 I 0 294 82 0 0 828 87,193 0 29,607 0 0 842,156 I 0 0 0 0 0 18,855 0 286 23 0 0 27,240 I $ 139,276 $ 6,860 $ 29,712 $ 202,698 $ 122,372 $ 2,298,668 I $ 0 $ 0 $ 18,360 $ 0 $ 0 $ 57,312 87,193 294 29,689 0 0 861,839 I 87,193 294 48,049 0 0 919,151 I 52,083 6,566 (18,337) 202,698 122,372 1,379,517 I $ 139,276 $ 6,860 $ 29,712 $ 202,698 $ 122,372 $ 2,298,668 I I I I I 46 I I CITY OF ALBERTVILLE, MINNESOTA DEBT SERVICE FUNDS I COMBINING STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE Year Ended December 31, 1995 (Continued) I I REVENUES General Property Taxes Special Assessments Charges for Services Miscellaneous - Interest Total Revenues GO GO Improvement GO Refunding & Refunding Improvement Improvement Bond Bond Fund Fund Fund $ 5,037 $ 9,420 $ 0 9,121 97,786 44,507 0 0 0 0 14,322 8,892 14,158 121,528 53,399 I I I I EXPENDITURES Miscellaneous - Interest Debt Service - Bond Prmclpal Bond Interest and Fiscal Charges Total Expenditures I FUND BALANCE - January 1 1,085 0 0 15,000 95,000 0 5,363 26,933 9,214 21,448 121,933 9,214 (7,290) (405) 44,185 (12,571) 233,968 115,788 $ (19,861) $ 233,563 $ 159,973 I I EXCESS OF REVENUES OVER (UNDER) EXPENDITURES FUND BALANCE - December 31 I I I I I I I I CITY OF ALBERTVILLE, MINNESOTA CAPITAL PROJECTS FUNDS COMBINING BALANCE SHEET December 31, 1995 1989 1991A Albertv1l1e Westwmd Dramage 2nd AddItIon Westwmd TIF Improvement Improvement 3rd AddItIon 2,3&4 Project Project Fund ASSETS Cash and Investments $ 0 $ 33,500 $ 6,294 $ 6,826 Accounts ReceIvable 0 0 0 0 TOTAL ASSETS $ 0 $ 33,500 $ 6,294 $ 6,826 LIABILITIES AND FUND BALANCE LmbIhtIes Cash Overdraft $ 14,640 $ 0 $ 0 $ 0 Fund Balance Unreserved - DeSIgnated for CapItal Outlay 0 33,500 6,294 6,826 UndesIgnated (14,640) 0 0 0 Total Fund Balance (14,640) 33,500 6,294 6,826 TOTAL LIABILITIES AND FUND BALANCE $ 0 $ 33,500 $ 6,294 $ 6,826 I I I I I I I I I I I I I I I I I I I CITY OF ALBERTVILLE, MINNESOTA CAPITAL PROJECTS FUNDS COMBINING BALANCE SHEET December 31, 1995 (Contmued) Hardwood 92- IIA Ponds Parks Ide FIre Project 2nd AddItIOn 2nd AddItion Hall Fund Fund Fund Bmldmg ASSETS Cash and Investments $ 165,404 $ 24,984 $ 0 $ 0 Accounts ReceIvable 0 0 0 0 TOTAL ASSETS $ 165,404 $ 24,984 $ 0 $ 0 LIABILITIES AND FUND BALANCE LiabIlIties Cash Overdraft $ 0 $ 0 $ 2,170 $ 2,017 Fund Balance Unreserved - DeSIgnated for CapItal Outlay 165,404 24,984 0 0 UndesIgnated 0 0 (2,170) (2,017) Total Fund Balance 165,404 24,984 (2,170) (2,017) TOTAL LIABILITIES AND FUND BALANCE $ 165,404 $ 24,984 $ 0 $ 0 I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I CITY OF ALBERTVILLE, MINNESOTA CAPITAL PROJECTS FUNDS COMBINING STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE Year Ended December 31, 1995 1989 1991A Albertvtlle Westwmd Dramage 2nd AddItIon Westwmd TIF Improvement Improvement 3rd AddItIon 2,3,&4 Project Project Fund REVENUES Intergovernmental Revenues - State Grants $ 0 $ 0 $ 0 $ 0 MIscellaneous Revenues - Interest 0 2,182 393 433 Total Revenues 0 2,182 393 433 EXPENDITURES Other 914 0 0 0 CapItal Outlay - Legal 0 0 0 220 Engmeenng 0 2,852 0 0 Total ExpendItures 914 2,852 0 220 EXCESS OF REVENUES OVER (UNDER) EXPENDITURES (914) (670) 393 213 FUND BALANCE - January 1 (13,726) 34,170 5,901 6,613 FUND BALANCE - December 31 $ (14,640) $ 33,500 $ 6,294 $ 6,826 I I I I I I I I I I I I I I I I I I I CITY OF ALBERTVILLE, MINNESOTA CAPITAL PROJECTS FUNDS COMBINING STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE Year Ended December 31, 1995 (Contmued) Hardwood 92-IIA Ponds 2nd Parks Ide Fire Project Addition 2nd AdditIOn Hall Fund Fund Fund BUlldmg REVENUES Intergovernmental Revenues - State Grants $ 16,909 $ 0 $ 0 $ 0 Miscellaneous Revenues - Interest 9,890 1,561 0 0 Total Revenues 26,799 1,561 0 0 EXPENDITURES Other 0 0 135 126 Capital Outlay - Legal 0 0 0 0 Engmeenng 2,681 0 0 0 Total Expenditures 2,681 0 135 126 EXCESS OF REVENUES OVER (UNDER) EXPENDITURES 24,118 1,561 (135) (126) FUND BALANCE - January 1 141,286 23,423 (2,035) (1,891) FUND BALANCE - December 31 $ 165,404 $ 24,984 $ (2,170) $ (2,017) I I I I I I I I I I I I I I I I I , I I CITY OF ALBERTVILLE, MINNESOTA CAPITAL PROJECTS FUNDS COMBINING STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE Year Ended December 31, 1995 (Contmued) SImonson Totals Meadowvlew Lumber 1995 REVENUES Intergovernmental Revenues - State Grants $ 0 $ 0 $ 16,909 MIscellaneous Revenues - Interest 0 0 15,406 Total Revenues 0 0 32,315 EXPENDITURES Other 7 33 3,433 CapItal Outlay - Legal 0 0 245 Engmeermg 0 0 5,724 Total ExpendItures 7 33 9,402 EXCESS OF REVENUES OVER (UNDER) EXPENDITURES (7) (33) 22,913 FUND BALANCE - January 1 (101) (501) 219,608 FUND BALANCE - December 31 $ (108) $ (534) $ 242,521 54 I I I I I I I I I I I I I I I I I I I CITY OF ALBERTVILLE, MINNESOTA GENERAL LONG-TERM DEBT ACCOUNT GROUP General oblIgatIOn bonds and other forms oflong-term debt supported by general revenues are oblIgations of a governmental umt as a whole and not Its IndIVIdual constItuent funds Moreover, the proceeds of such debt may be spent on facIlItIes WhICh are utilIzed In the operatIOns of several funds For these reasons the amount of unmatured, long-term Indebtedness WhICh IS backed by the full faIth and credIt of the government should be recorded and accounted for In a separate self-balancIng group of accounts titled the "General Long-Term Debt Group of Accounts" ThIS debt group Will Include, In addItion to conventIOnal general oblIgatIOn bonds, time warrants and notes WhICh have a maturIty of more than one year from date of Issuance I I I I I I I I I I I I I I I I I I I CITY OF ALBERTVILLE, MINNESOTA GENERAL LONG-TERM DEBT December 31, 1995 AMOUNT AVAILABLE AND TO BE PROVIDED FOR PAYMENT OF GENERAL LONG-TERM DEBT- Amount A vallable In Debt ServIce Funds Amount to be ProvIded for RetIrement of General Long-Term Debt TOTAL AVAILABLE AND TO BE PROVIDED GENERAL LONG-TERM DEBT GO Sewer and Water Revenue Bonds of 1988 G 0 Advance RefundIng and Improvement Bond of 1988 G 0 RefundIng Bond of 1989 G 0 Tax Increment Bonds of 1990 G 0 Improvement Bond of 1990 GO Improvement Bond of 1991A G 0 Improvement Bond of 1991 B G 0 RefundIng Improvement Bond of 1992 G 0 Improvement Bonds, Senes 1992A G 0 Improvement RefundIng Bonds, Senes 1993A GO Improvement RefundIng Bonds, Senes 1993B G 0 Improvement RefundIng Bonds, Senes 1993C G 0 Improvement RefundIng Bonds, Senes 1994A TOTAL GENERAL LONG-TERM DEBT $ 1,379,517 1,138,483 $ 2,518,000 $ 115,000 210,000 145,000 130,000 210,000 198,000 60,000 90,000 275,000 545,000 245,000 165,000 130,000 $ 2,518,000 57 I I I I I I I I I I I I I I I I I I I CITY OF ALBERTVILLE, MINNESOTA STATEMENT OF SOURCES AND USES OF PUBLIC FUNDS FOR ECONOMIC DEVELOPMENT DISTRICT NO 5 A TAX INCREMENT FINANCING DISTRICT December 31, 1995 Accounted For m Pnor Current Amount Budget Years Year Remammg Sources of Funds Bond Proceeds $ 253,147 $ 268,234 $ 0 $ (15,087) Tax Increments 0 168,213 69,301 (237,514) Interest Earmngs 0 14,265 5,813 (20,078) Other 0 3,182 0 (3,182) Total Sources of Funds 253,147 453,894 75,114 (275,861) Uses of Funds ConstructIon and Improvements 196,856 135,702 0 61,154 AdmIillstratIve Costs 10,000 10,000 0 0 Legal Costs 3,161 3,161 0 0 Engmeermg 30,098 0 0 30,098 TIF Consultants 6,984 0 0 6,984 Costs of Bond Issuance 6,048 11,807 0 (5,759) Bond Payments - PrmcIpal 0 65,000 40,000 (105,000) Interest 0 63,960 11,145 (75,105) FIscal Agent Fees 0 659 175 (834) Total Uses of Funds 253,147 290,289 51,320 (88,462) DIStnCt Balance $ 0 $ 163,605 $ 23,794 $ (187,399) 58 I I I I I I I I I I I I I I I I I I I CITY OF ALBERTVILLE, MINNESOTA STATEMENT OF SOURCES AND USES OF PUBLIC FUNDS FOR ECONOMIC DEVELOPMENT DISTRICT NO 6 A TAX INCREMENT FINANCING DISTRICT December 31, 1995 Accounted For m Pnor Current Amount Budget Years Year Remammg Sources of Funds Bond Proceeds $ 329,933 $ 0 $ 0 $ 329,933 Tax Increments 0 0 33,436 (33,436) Interest Earnmgs 0 0 0 0 Other 0 0 0 0 Total Sources of Funds 329,933 0 33,436 296,497 Uses of Funds Land AcqUltIsIon 121,000 0 0 121,000 SIte Improvements 192,533 0 0 192,533 Legal Costs 2,900 0 0 2,900 Bond Counsel 2,000 0 0 2,000 TIF Consultant 2,500 0 0 2,500 FmancIaI AdvIsor 3,000 0 0 3,000 CIty AdmmIstratIOn 6,000 0 0 6,000 Payment to Developer 0 0 33,436 (33,436) Total Uses of Funds 329,933 0 33,436 296,497 DIstnct Balance $ 0 $ 0 $ 0 $ 0 59 I I I I I I I I I I I I I I I I I I I CITY OF ALBERTVILLE, MINNESOTA INDEPENDENT AUDITOR'S REPORT ON COMPLIANCE WITH MINNESOTA STATUTES February 23, 1996 Honorable Mayor and CIty CouncIl CIty of AlbertvIlle AlbertvIlle, MInnesota We have audIted the general purpose financial statements of the CIty of AlbertvIlle as of and for the year ended December 31, 1995, and have Issued our report thereon dated February 23, 1996 We conducted our audIt In accordance wIth generally accepted audItIng standards and the prOVISIons of the MInnesota Legal ComplIance AudIt GUide for Local Government, promulgated by the Legal ComplIance Task Force pursuant to MInnesota Statute Sec 6 65 AccordIngly, the audIt Included such tests of the accountIng records and such other audItIng procedures as we consIdered necessary In the CIrcumstances The MInnesota Legal ComplIance AudIt GUide for Local Government covers five maIn categones of complIance to be tested contractIng and bIddIng, deposIts and Investments, confhcts of Interest, publIc Indebtedness, and claIms and dIsbursements Our study Included all of the lIsted categones The results of our tests IndIcate that for the Items tested the CIty complIed WIth the matenal terms and condItIons of applIcable legal proVIsIons, except as descnbed In the accompanYIng schedule on FIndIngs on ComplIance WIth MInnesota Statutes Further, for the Items not tested, based on our audIt and the procedures referred to above, nothIng came to our attentIOn to IndIcate that the CIty had not complIed WIth such legal proVIsIOns ThIS report IS Intended solely for the use of the CIty and should not be used for any other purpose ThIS restnctIOn IS not Intended to lImIt the dIstnbutIon of thIS report, whIch IS a matter of publIc record ~, l)weriuL, VWiL, k KERN, DEWENTER, VIERE, L TD 60 I I I I I I I I I I I I I I I I I I I CITY OF ALBERTVILLE, MINNESOTA FINDINGS ON COMPLIANCE WITH MINNESOTA STATUTES Year Ended December 31,1995 CURRENT YEAR FINDING Collateral MInnesota Statutes Sec 118 Oland 118 10, provIde that all deposIts With financIal InstItutIOns must be collateralIzed In an amount equal to 110% of deposIts In excess of FDIC Insurance The deposIts of the CIty at December 31, 1995, were unsecured as follows 110% of DeposIts In Excess of FDIC At December 31. 1995 Market Value of Collateral at December 31. 1995 Unsecured HIghland Bank $ 1,929,629 $ 1,903,634 $ 25,995 We recommend the CIty momtor collateral to ensure proper collaterahzatIOn 61