1995 Audited Financial Statements
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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
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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
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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
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220 Park Avenue South PO Box 1304 St Cloud, MN 56302
320-251-7010 FAX 320-251-1784
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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
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CITY OF ALBERTVILLE, MINNESOTA I
COMBINED BALANCE SHEET - ALL FUND TYPES AND ACCOUNT GROUPS I
December 31, 1995
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Governmental Fund Types
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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
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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
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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
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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
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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
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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
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The notes to the finanCial statements are an mtegral part of this statement
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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
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0 36,980 36,980 0 217,463 157,463
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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
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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
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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
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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
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The notes to the financial statements are an mtegral part of thiS statement
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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
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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
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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
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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
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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
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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
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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
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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
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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
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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
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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
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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
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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
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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
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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
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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
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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
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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
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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
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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
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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
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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
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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
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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
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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
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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
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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
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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
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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
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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
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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
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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
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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
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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
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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
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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
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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
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$ 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
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CITY OF ALBERTVILLE, MINNESOTA
DEBT SERVICE FUNDS
COMBINING BALANCE SHEET
December 31, 1995
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\ \'; 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
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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 )
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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
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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
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CITY OF ALBERTVILLE, MINNESOTA
DEBT SERVICE FUNDS
I
COMBINING STATEMENT OF REVENUES, EXPENDITURES
AND CHANGES IN FUND BALANCE
Year Ended December 31, 1995
(Continued)
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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
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EXPENDITURES
Miscellaneous -
Interest
Debt Service -
Bond Prmclpal
Bond Interest and Fiscal Charges
Total Expenditures
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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
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EXCESS OF REVENUES OVER (UNDER)
EXPENDITURES
FUND BALANCE - December 31
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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
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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
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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
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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)
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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
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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
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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
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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)
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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
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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
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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
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