1998 Audited Finanical 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 Earnmgs -
All Propnetary Fund Types
Combmed Statement of Cash Flows - All Propnetary Fund Types
Notes to the Fmanclal Statements
COMBINING AND INDIVIDUAL FUND FINANCIAL STATEMENTS -
General Fund -
ComparatIve Balance Sheet .
Statement of Revenues, ExpendItures and Changes m Fund Balance - Budget
and Actual
SpecIal Revenue Funds -
Comblmng Balance Sheet
Comblmng 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
Combmmg Statement of Revenues, ExpendItures and Changes m Fund
Balance
Enterpnse Funds -
Combmmg Balance Sheet
Comblmng Statement of Revenues, Expenses, and Changes m Retamed
Earnmgs
Combmmg Statement of Cash Flows
Statement of General FIxed Assets
Statement of General Long-Term Debt
SUPPLEMENTARY INFORMATION -
Statement of Sources and Uses ofPubhc Funds for EconoInlc Development
Dlstnct No 1, Tax Increment Fmancmg Dlstnct No 5
Statement of Sources and Uses ofPubhc Funds for EconomIc Development
Dlstnct No 1, Tax Increment Fmancmg Dlstnct No 6
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CITY OF ALBERTVILLE, MINNESOTA
TABLE OF CONTENTS
(Contmued)
SUPPLEMENTARY INFORMATION - (Contmued)
Statement of Sources and Uses ofPubhc Funds for Economic Development
DistrIct No 1, Tax Increment Fmancmg DistrIct No 7
Statement of Sources and Uses ofPubhc Funds for EconomIc Development
DistrIct No 1, Tax Increment Fmancmg DistrIct No 8
Statement of Sources and Uses ofPubhc Funds for Economic Development
DistrIct No 1, Tax Increment Fmancing DistrIct No 9
INDEPENDENT AUDITORS' REPORT ON COMPLIANCE WITH MINNESOTA
STATUTES
FINDINGS ON COMPLIANCE WITH MINNESOTA STATUTES
CORRECTIVE ACTION PLANNED BY THE CITY IN ORDER TO RESOLVE
CURRENT YEAR AND PRIOR YEAR AUDIT FINDINGS
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Elected Officials
Mark S Olsen
Duane Bernmg
Robert Gunderson
Pamcla Stalberger
John Vetsch
Appomted
DaVId Lund
Lmda Houghton
CITY OF ALBERTVILLE, MINNESOTA
ELECTED OFFICIALS AND ADMINISTRATION
December 31, 1998
PosItIon
Term ExpIres
Mayor
CouncIl Member
CouncIl Member
CouncIl Member
CouncIl Member
December 31, 1998
December 31, 1998
December 31, 1998
December 31, 2000
December 31, 2000
CIty AdmmIstrator
CIty Clerk-Treasurer
December 31, 1998
Indefimte
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.,=0\7' Kem, DeWenter, Viere, Ltd.
.~-- Certified Public Accountants
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INDEPENDENT AUDITORS' REPORT
March 3,1999
Honorable Mayor and City CouncIl
City of AlbertvIlle
AlbertvIlle, Mmnesota
We have audited the accompanying general purpose financIal statements of the CIty of
AlbertvIlle, Mmnesota, as of and for the year ended December 31, 1998, as lIsted m the table of
contents These general purpose finanCIal statements are the responsIbIlIty of the City'S
management Our responsIbIlIty IS to express an opmIOn on these general purpose finanCial
statements based on our audIt
Except as dIscussed m the followmg paragraphs, we conducted our audit m accordance With
generally accepted audItIng standards Those standards reqUIre that we plan and perform the
audIt to obtam reasonable assurance about whether the general purpose 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 prmcIples used and sIgmficant estimates made by management, as well
as evaluatmg the overall general purpose finanCial statement presentatIOn We belIeve that our
audIt proVIdes a reasonable basIS for our opmIOn
Governmental Accountmg Standards Board Techmcal Bulletm 98-1, Dzsclosures about Year
2000 Issues, reqUIres dIsclosure of certam matters regardmg the year 2000 Issue The City of
AlbertVIlle, Mmnesota has mcluded such disclosures m Note 7 Because of the unprecedented
nature of the year 2000 Issue, Its effects and the success of related remediation efforts Will not be
fully determmable untIl the year 2000 and thereafter Accordmgly, msufficIent audIt eVIdence
eXIsts to support the CIty'S dIsclosures With respect to the year 2000 Issue made m Note 7
Further, we do not proVIde assurance that the City of AlbertvIlle, Mmnesota IS or wIll be year
2000 ready, that the CIty of AlbertvIlle's year 2000 remedIatIOn efforts WIll be successful m
whole or m part, or that partIes WIth whIch the CIty does busmess WIll be year 2000 ready
220 Park Avenue South, PO Box 1304
St Cloud, MN 56302
320-251-7010 · Fax 320-251-1784
TWin CIties Metro 612-338-6202
WWW kdv com
7600 Bass Lake Road, SUIte 104
Minneapolis MN 55428 2
612-537-3011 · Fax 612-537-9682
www kdv com
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Honorable Mayor and CIty CouncIl
March 3, 1999
Page 2
In our opmIOn, except for the effects of such adjustments, If any, as mIght have been determmed
to be necessary had we audIted the general fixed asset account group and had we been able to
examme eVIdence regardmg year 2000 dIsclosures, the general purpose finanCIal statements
referred to above present faIrly, mall matenal respects, the finanCIal posItIOn of the CIty of
AlbertvIlle, MInnesota, as of December 31, 1998, and the results of Its operatIOns and cash flows
of Its propnetary fund types for the year then ended m conformIty WIth generally accepted
accountmg pnncIples
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 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, MInnesota 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
The supplementary mformatIOn lIsted m the table of contents IS not necessary for a faIr
presentatIOn of the financIal statements but IS presented for purposes of addItIonal analysIs ThIS
mformatIOn has not been subjected to any audIt procedures and, accordmgly, we do not express
an opmIOn on It
.&.~~U~rfPM.
KERN, DEWENTER, VIERE, L TD
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CITY OF ALBERTVILLE, MINNESOTA I
COMBINED BALANCE SHEET - ALL FUND TYPES AND ACCOUNT GROUPS I
December 31, 1998
Governmental Fund Types I
Special Debt I
ASSETS AND OTHER DEBITS General Revenue ServIce
Assets I
Cash and Investments (IncludIng Cash
EqUIvalents) $ 477,388 $ 2,176,634 $ 555,575
Taxes ReceIvable -
DelInquent 9,691 0 1,994 I
SpeCIal Assessments ReceIvable -
Deferred 0 0 433,067
DelInquent 0 0 18,817 I
Accounts ReceIvable 0 0 0
Interest ReceIvable 35,903 0 0
Due from Other Governmental Umts 2,616 0 469 I
Loans ReceIvable 0 68,445 0
FIxed Assets - Net 0 0 0
Other DebIts
Amount A vatlable In Debt ServIce Funds 0 0 0 I
Amount to be ProvIded for Rettrement of
General Long-Term Debt 0 0 0
TOTAL ASSETS AND I
OTHER DEBITS $ 525,598 $ 2,245,079 $ 1,009,922
LIABILITIES, EQUITY AND OTHER CREDITS I
LIabilItIes
Cash Overdraft $ 0 $ 2,552 $ 199,535
Accounts Payable 129,849 0 0 I
Accrued Payroll Taxes and Benefits 4,664 0 0
Deferred Revenue 9,691 68,445 453,878
Bonds Payable 0 0 0
Total LIabIlItIes 144,204 70,997 653,413 I
EqUIty and Other CredIts
Investment In General FIxed Assets 0 0 0 I
Contnbuted Capital 0 0 0
Retamed Eammgs -
Reserved 0 0 0
Unreserved 0 0 0 I
Fund Balance -
Reserved 0 0 514,767
Unreserved - I
DeSIgnated 445,500 342,657 36,511
UndesIgnated (64,106) 1,831,425 (194,769)
Total EqUIty and Other CredIts 381,394 2,174,082 356,509 I
TOTAL LIABILITIES, EQUITY
AND OTHER CREDITS $ 525,598 $ 2,245,079 $ 1,009,922
The notes to the financIal statements are an Integral part of thiS statement I
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I Propnetary
Fund Type Account Groups
General
I FIxed General Totals
CapItal Assets Long-Term (Memorandum Only)
Projects Enterpnse (Unaudited) Debt 1998 1997
I $ 247,263 $ 126,725 $ 0 $ 0 $ 3,583,585 $ 3,321,647
I 0 0 0 0 11,685 11,684
46,400 0 0 0 479,467 500,605
I 0 0 0 0 18,817 18,817
0 91,420 0 0 91,420 74,747
0 0 0 0 35,903 25,403
0 83,333 0 0 86,418 5,243
I 0 0 0 0 68,445 74,561
0 3,110,451 800,944 0 3,911,395 3,872,097
I 0 0 0 356,509 356,509 613 ,204
0 0 0 738,491 738,491 1,136,796
I $ 293,663 $ 3,411,929 $ 800,944 $ 1,095,000 $ 9,382,135 $ 9,654,804
I $ 300,171 $ 35,340 $ 0 $ 0 $ 537,598 $ 283,809
I 43,230 9,779 0 0 182,858 68,335
0 0 0 0 4,664 3,183
46,400 0 0 0 578,414 605,667
0 1,232,672 0 1,095,000 2,327,672 3,040,240
I 389,801 1,277,791 0 1,095,000 3,631,206 4,001,234
I 0 0 800,944 0 800,944 725,696
0 1,868,608 0 0 1,868,608 1,868,608
0 97,894 0 0 97,894 94,354
I 0 167,636 0 0 167,636 162,626
0 0 0 0 514,767 667,489
I 217,076 0 0 0 1,041,744 1,132,650
(313,214) 0 0 0 1,259,336 1,002,147
(96,138) 2,134,138 800,944 0 5,750,929 5,653,570
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$ 293,663 $ 3,411,929 $ 800,944 $ 1 ,095,000 $ 9,382,135 $ 9,654,804
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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, 1998
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Governmental Fund Types I
SpeCIal Debt
General Revenue Service
REVENUES
Taxes $ 503,310 $ 0 $ 158,565 I
SpeCial Assessments 0 0 191,120
Licenses and PermIts 264,193 0 0
Intergovernmental Revenues 262,597 0 0 I
Charges for ServIces 52,060 471,730 11,800
Fmes 304 0 0
Miscellaneous Revenues 33,267 264,980 25,217 I
Total Revenues 1,115,731 736,710 386,702
EXPENDITURES I
Current -
General Government 303,403 0 0
PublIc Safety 400,876 0 0 I
PublIc Works 252,276 0 0
Sanitation 14,580 0 0
Culture and RecreatIOn 338,014 3,416 0
Economic Development 1,025 0 0 I
Miscellaneous 3,157 133 12,044
Capital Outlay 0 0 0
Debt Service - I
PnncIpal 0 0 655,000
Interest and FIscal Charges 0 0 84,182
Total ExpendItures 1,313,331 3,549 751,226 I
EXCESS OF REVENUES OVER (UNDER)
EXPENDITURES (197,600) 733,161 (364,524) I
OTHER FINANCING SOURCES (USES)
Operatmg Transfers In 105,789 0 0 I
Operatmg Transfers Out 0 (105,789) 0
Total Other Fmancmg Sources (Uses) 105,789 (105,789) 0
EXCESS OF REVENUES AND OTHER I
FINANCING SOURCES OVER (UNDER)
EXPENDITURES AND OTHER USES (91,811) 627,372 (364,524)
FUND BALANCE - January 1 473,205 1,654,539 613,204 I
RESIDUAL EQUITY TRANSFER 0 (107,829) 107,829 I
FUND BALANCE - December 31 $ 381 ,394 $ 2,174,082 $ 356,509
The notes to the finanCial statements are an mtegral part of thiS statement I
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Totals
I Capital (Memorandum Only)
Projects 1998 1997
I $ 45,198 $ 707,073 $ 633,381
9,976 201,096 245,797
0 264,193 150,231
I 0 262,597 240,855
16,050 551,640 596,906
0 304 227
I 13,810 337,274 186,986
85,034 2,324,177 2,054,383
I 0 303,403 243,042
0 400,876 112,181
I 0 252,276 159,400
0 14,580 12,342
0 341,430 28,032
I 0 1,025 2,321
59,563 74,897 88,661
182,947 182,947 652,545
I 0 655,000 460,000
0 84,182 110,616
I 242,510 2,310,616 1,869,140
I (157,476) 13,561 185,243
0 105,789 312,723
I 0 (105,789) (312,723)
0 0 0
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(157,476) 13,561 185,243
I 61,338 2,802,286 2,617,043
I 0 0 0
$ (96,138) $ 2,815,847 $ 2,802,286
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CITY OF ALBERTVILLE, MINNESOTA
COMBINED STATEMENT OF REVENUES, EXPENDITURES AND I
CHANGES IN FUND BALANCE - BUDGET AND ACTUAL -
GENERAL AND SPECIAL REVENUE FUND TYPES I
Year Ended December 31, 1998
General Fund I
Over I
(Under)
Budget Actual Budget
REVENUES
Taxes $ 496,500 $ 503,310 $ 6,810 I
LIcenses and Permits 56,375 264,193 207,818
Intergovernmental Revenues 263,805 262,597 (1,208)
Charges for ServIces 41,795 52,060 10,265 I
Fmes 100 304 204
MIscellaneous Revenues 27,450 33,267 5,817
Total Revenues 886,025 1,115,731 229,706 I
EXPENDITURES
Current - I
General Government 236,236 303,403 67,167
Pubhc Safety 257,452 400,876 143,424
Pubhc Works 201,241 252,276 51,035 I
Samtatlon 14,580 14,580 0
Culture and RecreatIon 91,442 338,014 246,572
EconomIC Development 10,817 1,025 (9,792) I
Miscellaneous 0 3,157 3,157
Total Expenditures 811,768 1,313,331 501,563
EXCESS OF REVENUES OVER (UNDER) I
EXPENDITURES 74,257 (197,600) (271,857)
OTHER FINANCING SOURCES (USES) I
Operatmg Transfers In 0 105,789 105,789
Operatmg Transfers Out 0 0 0
Total Other Fmancmg Sources (Uses) 0 105,789 105,789 I
EXCESS OF REVENUES AND OTHER
FINANCING SOURCES OVER I
EXPENDITURES AND OTHER USES $ 74,257 (91,811) $ (166,068)
FUND BALANCE - January 1 473,205 I
RESIDUAL EQUITY TRANSFER 0
FUND BALANCE - December 31 $ 381,394 I
The notes to the finanCIal statements are an mtegral part of thIS statement I
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I Totals
Special Revenue Funds (Memorandum Only)
Over Over
I (Under) (Under)
Budget Actual Budget Budget Actual Budget
I $ 0 $ 0 $ 0 $ 496,500 $ 503,310 $ 6,810
0 0 0 56,375 264,193 207,818
0 0 0 263,805 262,597 (1,208)
I 0 471,730 471,730 41,795 523,790 481,995
0 0 0 100 304 204
0 264,980 264,980 27,450 298,247 270,797
0 736,710 736,710 886,025 1,852,441 966,416
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I 0 0 0 236,236 303,403 67,167
0 0 0 257,452 400,876 143,424
0 0 0 201,241 252,276 51,035
I 0 0 0 14,580 14,580 0
0 3,416 3,416 91,442 341,430 249,988
0 0 0 10,817 1,025 (9,792)
I 0 133 133 0 3,290 3,290
0 3,549 3,549 811,768 1,316,880 505,112
I 0 733,161 733,161 74,257 535,561 461,304
I 0 0 0 0 105,789 105,789
0 (105,789) (105,789) 0 (105,789) (105,789)
0 (105,789) (105,789) 0 0 0
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I $ 0 627,372 $ 627,372 $ 74,257 535,561 $ 461 ,304
1,654,539 2,127,744
I (107,829) (107,829)
I $ 2,174,082 $ 2,555,476
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CITY OF ALBERTVILLE, MINNESOTA I
COMBINED STATEMENT OF REVENUES, EXPENSES AND I
CHANGES IN RETAINED EARNINGS - ALL PROPRIETARY FUND TYPES
Year Ended December 31, 1998 I
WIth ComparatIve Totals for the Year Ended December 31, 1997
Totals I
1998 1997
OPERATING REVENUES
Charges for ServIces $ 260,579 $ 233,849 I
PenaltIes 3,450 3,948
Total Operatmg Revenues 264,029 237,797
OPERATING EXPENSES I
Salanes and Benefits 7,073 0
RepaIrs and Mamtenance 16,439 13,792 I
Engmeer Fees 2,842 3,657
Legal Fees 605 50
Supphes 4,183 1,558 I
ProfessIOnal ServIces 114,422 86,197
Insurance 1,797 4,319
DepreCIatIon 76,956 77,877
MIscellaneous 252 554 I
Total Operatmg Expenses 224,569 188,004
OPERATING INCOME 39,460 49,793 I
NON-OPERATING REVENUES (EXPENSES)
Interest Income 11,452 11,308 I
Interest Expense and FIscal Charges (42,362) (44,227)
Total Non-operatmg Revenues (Expenses) (30,910) (32,919)
NET INCOME 8,550 16,874 I
RETAINED EARNINGS - January 1 256,980 240,106 I
RETAINED EARNINGS - December 31 $ 265,530 $ 256,980
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The notes to the financIal statements are an mtegral part of thIS statement I
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CITY OF ALBERTVILLE, MINNESOTA
COMBINED STATEMENT OF CASH FLOWS -
ALL PROPRIETARY FUND TYPES
Year Ended December 31,1998
WIth ComparatIve Totals for the Year Ended December 31, 1997
CASH FLOWS FROM OPERATING ACTIVITIES
Operatmg Income
Adjustments to ReconcIle Operatmg Income to
Net Cash ProvIded by Operatmg ActIvItIes
DeprecIatIon
Change m Assets and LIabIlItIes
(Increase) m Accounts ReceIvable
Increase m Accounts Payable
Total Adjustments
Totals
1998 1997
$ 39,460 $ 49,793
76,956 77,877
(100,006) (280)
7,388 2,285
(15,662) 79,882
23,798 129,675
Net Cash ProvIded by OperatIng ActIVItIes
CASH FLOWS FROM CAPITAL AND RELATED FINANCING
ACTIVITIES
PnncIpal Payments on Bonds
Interest and FIscal Charges PaId on Bonds
AcqUIsItIOn of FIxed Assets
Net Cash (Used) by CapItal and Related Fmancmg ActIVItIes
(57,568) (55,704)
(42,362) (44,227)
(41,006) 0
(140,936) (99,931)
11,452 11,308
(105,686) 41,052
197,071 156,019
$ 91,385 $ 197,071
CASH FLOWS FROM INVESTING ACTIVITIES
Interest on Investments
Net Increase (Decrease) m Cash and Cash EqUIvalents
Cash and Cash EqUIvalents, January 1
Cash and Cash EqUIvalents, December 31
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
Year Ended December 31, 1998
NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
The CIty of Albertv1l1e, MInnesota, has a mayor-councll 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 pohcIes of the CIty conform to generally accepted accountmg pnncIples except
that the CIty has not mamtamed adequate fixed asset records for the General FIxed Asset
Account Group WIth respect to propnetary actIvIties, the CIty has adopted GASB No 20,
"Accountmg and FmancIal Reportmg for Propnetary Funds and Other Governmental Entities
that use Propnetary Fund Accountmg II The CIty has elected to apply all apphcable GASB
pronouncements as well as FmancIal Accountmg Standards Board (FASB) pronouncements,
Accountmg PnncIples Board (APB) OpmlOns and Accountmg Research Bulletms (ARB), Issued
on or before November 30, 1989 unless those pronouncements conflIct With or contradIct GASB
pronouncements In addItlOn, the CIty has elected not to apply F ASBs, APBs and ARBs Issued
after November 30, 1989 The followmg IS a summary of the CIty'S more sIgmficant accountmg
pohcIes
A FmancIal Reportmg Entity
In accordance WIth GASB Statement No 14, The Fmanczal Reportmg EntIty, the financial
statements present the CIty and ItS component unItS The City mcludes all funds, account
groups, orgamzatlOns, mstItutlOns, agencies, departments, and offices that are not legally
separate from such Component unitS are legally separate organlzatlOns for which the elected
offiCials of the City are financIally accountable and are mcluded Wlthm the general purpose
finanCial statements of the City because of the sIgmficance of theIr operatlOnal or finanCial
relatlOnshlps WIth the CIty
The City IS conSIdered finanCially accountable for a component umt If It appomts a votmg
maJonty of the organlzatlOn's govemmg body and It IS able to Impose ItS Will on the
organlzatlOn by slgmficantly mfluencmg the programs, proJects, actiVities, or level of
services performed or prOVided by the organlzatlOn, 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 umt defimtlOn cntena above, certam orgamzatlOns
have been defined m accordance With GASB Statement No 14 and are presented m thiS
report as follows
. Blended Component Umts - Reported as If they were part of the City
. DIscretely Presented Components Umts - EntaIls reportmg the component umt
finanCial data m a column separate from the finanCial data of the CIty
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CITY OF ALBERTVILLE, MINNESOTA
NOTES TO THE FINANCIAL STATEMENTS
Year Ended December 31, 1998
(Contmued)
NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Contmued)
A FmancIal Reportmg EntItv (Contmued)
· Related OrgamzatIon - The relatIOnshIp of the CIty WIth entIty IS dIsclosed
· Jomt Ventures and Jomtlv Governed OrganIzatIOns - The relatIOnshIp of the CIty WIth
the entIty IS dIsclosed
For each of the categones above, the specIfic entItIes are IdentIfied as follows
Blended Component Umt
None
DIscretely Presented Component Umts
None
Related OrganIzatIOn
None
Jomt Ventures and Jomtly Governed OrganIzatIOns
Jomt Powers Board Water Fund
In 1977 the CIty of AlbertvIlle entered mto an agreement wIth the CItIes of St
MIchael and Hanover and Frankfort TownshIP to construct a water system under a
grant bond arrangement WIth the Umted States EconomIc Development
AdmmlstratIOn (EDA) Water revenue bonds were Issued m the name ofthe CIty of
AlbertvIlle and purchased by EDA The Jomt Powers Board remIts the annual bond
and mterest payment to the CIty of AlbertvIlle whIch m turn remIts the payment to
EDA
The Jomt powers agreement states m the event the Jomt Powers Board Water Fund
does not generate sufficIent revenue to pay operatmg costs and prIncIpal and mterest
on bonds, the partICIpants agree to contrIbute from theIr general fund an amount
suffiCIent to pay for such defiCIency At the tIme of the orIgmal agreement, each CIty
and town was to contrIbute 25% of the reqmred amount In 1996, Frankfort
TownshIp was annexed mto the CItIes of St MIchael, AlbertvIlle, and Otsego and no
longer eXIsts as a tOwnshIP Therefore, the CIty of AlbertvIlle, IS now reqmred to
contrIbute one-thIrd of any potential defiCIenCIes of the Jomt Powers Board
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CITY OF ALBERTVILLE, MINNESOTA
NOTES TO THE FINANCIAL STATEMENTS
Year Ended December 31, 1998
(Contmued)
NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Contmued)
A Fmanclal Reportmg EntIty (Contmued)
Jomt Ventures and Jomtly Governed OrgarnzatIOns (Contmued)
Jomt Powers Board Water Fund (Continued)
A summary of the finanCIal mformatIon of the Jomt Powers Board Water Fund for the
year ended December 31, 1997 (1998 mformatIOn IS not avaIlable) IS
Total LIabIlItIes and EqUIty
$ 4,547,729
$ 1,688,401
2,859,328
$ 4,547,729
$ 504,689
(344,627)
270,254
$ 430,316
Total Assets
Total LiabIlItIes
Total EqUIty
Total Revenues
Operatmg Expenses
Other Income and Expenses
Net Income
FmancIaI statements for the Jomt Powers Board Water Fund may be obtamed at
AlbertVIlle CIty Hall
St MIchael - AlbertvIlle Ice Arena
In 1996 and 1997, the CIty of AlbertvIlle entered m a Jomt powers agreement With the
CIty of St MIchael and Independent School Dlstnct # 885 - St MIchael - AlbertvIlle,
for constructIOn and mamtenance of a qualIfied Ice arena In addItIOn, the CIty
receIved notIce m 1996 ofbemg selected as a MIghty Ducks grant reCIpIent to help
fund the cost of the arena The arena was constructed WIth MIghty Ducks grant
funds, donatIOns, and contnbutIOns by the CItIes of St MIchael and AlbertvIlle, and
Independent School DIStrICt # 885
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CITY OF ALBERTVILLE, MINNESOTA
NOTES TO THE FINANCIAL STATEMENTS
Year Ended December 31, 1998
(Contmued)
NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Contmued)
A FmancIaI Reportmg EntItv (Contmued)
Jomt Ventures and Jomtly Governed OrganIzatIOns (Contmued)
St MIchael - AlbertvIlle Ice Arena (Contmued)
The Jomt powers agreement states the CIty of AlbertvIlle IS to execute a revenue note
m the amount of$ 133,333 wmch wIll be paid back With funds avaIlable from the
operatIOn of the Ice arena The total amount of the revenue note IS to be $ 400,000, of
WhICh each partIcIpant IS one-tmrd responsIble If funds are deficIent, the CIty must
pay one-tmrd of the amount necessary to make up the shortage In addItIOn, the CIty
must allocate an amount sufficIent to pay one-thud of any projected shortfall m
annual revenues aVailable for the operatIOn and mamtenance of the Ice arena
Dunng 1998, the CIty of AlbertvIlle contnbuted the reqUired $ 133,333 toward the Ice
arena In addItIon, the CIty'S Storm Water Enterpnse Fund provIded the Ice arena
WIth a short-term loan m the amount of$ 83,333 Separate finanCial statements for
the Ice Arena Jomt Powers are not yet aVailable
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 mdlvldual funds based upon the purposes for whIch they are to
be spent and the means by whIch spendmg actIvItIes are controlled The varIOUS funds are
grouped, m the financial statements m thIS report, mto five genenc fund types and two 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 m another fund
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 restncted to
expendItures for specIfied purposes
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
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CITY OF ALBERTVILLE, MINNESOTA
NOTES TO THE FINANCIAL STATEMENTS
Year Ended December 31, 1998
(Contmued)
NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Contmued)
B Fund Accountmg (Contmued)
Governmental Funds (Contmued)
CaPital Prolects 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)
Propnetarv 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 pubhc on a contmumg baSIS be financed or recovered pnmanly through user
charges, or (b) where the governmg body has decIded that the penodIc determmatIOn of
revenues earned, expenses mcurred, or net mcome IS appropnate for capItal mamtenance,
pubhc pohcy, management control, accountabIhty, or other purposes The CIty mamtams
sanItary sewer and storm water enterpnse funds
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 Lon€!- Term Debt Account Group IS used to account for the CIty'S long-term
debt, other than that accounted for m propnetary funds
C Measurement Focus. FIxed Assets and Long-Term LIabIlItIes
The accountmg and reportmg treatment apphed to the fixed assets and long-term habIlItIes
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 habIlItIes are generally mcluded on theu 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
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CITY OF ALBERTVILLE, MINNESOTA
NOTES TO THE FINANCIAL STATEMENTS
Year Ended December 31, 1998
(Contmued)
NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Contmued)
C Measurement Focus. FIxed Assets and Long-Term LiabIlIties (Contmued)
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 noncurrent 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 noncurrent) aSSOCiated WIth
the fund's actiVIty are mcluded on the balance sheet TheIr reported fund eqUIty (net total
assets) IS segregated mto contrIbuted capItal and retamed earmngs components Propnetary
fund type operatmg statements present mcreases (revenues) and decreases (expenses) m net
total assets
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 lIves usmg
the straIght-Ime method
The estimated useful lIves of the fixed assets range from five to fifty years
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CITY OF ALBERTVILLE, MINNESOTA
NOTES TO THE FINANCIAL STATEMENTS
Year Ended December 31, 1998
(Contmued)
NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Contmued)
D BasIs of Accountmg
BaSIS of accountmg refers to when revenues and expendItures or expenses are recogmzed m
the accounts and reported m the financIal statements BasIS of accountmg relates to the
tlmmg 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 recogmzed 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 recogmtIOn 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 habIlItles
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 mc1ude property taxes, speCIal assessments,
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 Interest on special assessments IS recogmzed as revenue when
due, net of delmquencles
ExpendItures are generally recogmzed under the modIfied accrual basIS of accountmg when
the related fund lIabilIties are mcurred ExceptIOns to thIS rule mclude SIck pay and pnncIpal
and mterest on general long-term debt, whIch are recogmzed when due
All propnetary funds are accounted for usmg the accrual baSIS of accountmg, revenues are
recogmzed when they are earned and expenses are recogmzed when they are mcurred
The CIty reports deferred revenue on the combmed balance sheet Deferred revenues anse
when a potential revenue does not meet both the "measurable" and "available" cntena for
recogmtIOn m the current penod Deferred revenues also anse when resources are receIved
by the CIty before It has a legal claIm to them, or when grant momes are receIved pnor to the
mcurrence of quahfymg expendItures In subsequent years, when both revenue recogmtIOn
cntena are met, or when the CIty has a legal claIm to the resources, the lIabIhty for deferred
revenue IS removed from the combmed balance sheet and the revenue IS recogmzed
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CITY OF ALBERTVILLE, MINNESOTA
NOTES TO THE FINANCIAL STATEMENTS
Year Ended December 31, 1998
(Contmued)
NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Contmued)
E Budgetary Data
The CIty CouncIl adopts an annual budget The amounts shown m the financial statements as
"budget" represent the ongmal budgeted amount and all reVlSlons made dUrIng the year The
CIty follows these procedures m establIshmg the budgetary data reflected m the financial
statements
1 Budget requests are submItted by all department heads to the CIty AdnllnIstrator The
CIty AdmInIstrator compIles the budget requests mto an overall prelImmary CIty budget
2 The CIty AdmInIstrator 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 There were no budget amendments m 1998
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 oblIgatIOn bond mdenture
provIsIons Budgetary control for CapItal Projects Funds IS accomplIshed through the use
of project controls
4 The budget for the General Fund IS adopted on a basIs conSIstent wIth generally accepted
accountmg pnncIples (GAAP) Annual appropnatIOns lapse at year end
F Encumbrances
Encumbrances outstandmg at year-end expIre and outstandmg purchase orders are cancelled
and not reported m the financial statements
As of December 31, 1998, no outstandmg encumbrances eXIsted
G Cash and Investments (Includmg: 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 applIcable cash balance partIcIpatIOn by each fund
The CIty has Implemented Government Accountmg Standard Board (GASB) Statement No
31, whereby mvestments are generally reported at faIr value as of December 31, 1998
GASB Statement No 31 allows certam mvestments wIth remammg maturItIes at the time of
purchase of one year or less to be carned at amortIzed cost No matenal finanCIal statement
adjustments were reqUIred to Implement GASB Statement No 31
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CITY OF ALBERTVILLE, MINNESOTA
NOTES TO THE FINANCIAL STATEMENTS
Year Ended December 31, 1998
(Contmued)
NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Contmued)
G Cash and Investments (Includmg Cash EQUIvalents) (See Note 3) (Contmued)
F or purposes of the Statement of Cash Flows of propnetary fund types, cash eqUIvalents are
defined as short-term, hIghly lIqUId mvestments that are both
a readIly convertible to known amounts of cash, or
b so near theIr matunty that they present mSIgmficant nsk of changes m value because
of changes m mterest rates
The CIty'S polIcy consIders cash eqUIvalents to be those that meet the above cntena and have
ongmal matuntIes ofthree months or less
H Taxes ReceIvable
Delmquent taxes receIvable represent the past SIX years of uncollected tax levIes
I Special Assessments ReceIVable
DelInquent special assessments represent the past SIX years of uncollected speCIal
assessments
Deferred special assessments represent the prmcIpal portIOn of those assessments to property
owners for Improvements made by the CIty and are to be prod m 1999 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 delmquent taxes, delmquent and deferred assessments
receIvable, and loans receIvable ThIS revenue IS deferred untIl It IS measurable and avaIlable
as net current assets
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CITY OF ALBERTVILLE, MINNESOTA
NOTES TO THE FINANCIAL STATEMENTS
Year Ended December 31, 1998
(Contmued)
NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Contmued)
L VacatIOn and SIck Leave
The CIty compensates employees who resIgn or retIre WIth due notIce for unused vacatIon
and holIday pay Employees may not carry over vacatIon tIme from one vacatIOn year to
another vacatIon year as establIshed by the employee's annIversary date unless pnor approval
IS granted by the CIty CouncIl
The CIty has Implemented a sIck leave mcentIve program Full-tIme employees are entItled
to sIck leave at the rate of one day per month to a mID{lmum of 45 days or 360 hours Hours
accumulated m excess of the maxImum IS applIed to the SIck leave mcentIve program An
employee earns one-fourth day paId vacatIOn or one-fourth days' pay m lIeu of SaId vacatIOn
at the employee's optIOn ThIS optIon IS only actIve and avaIlable when the begmmng SIck
leave balance for each month IS 45 days The cash m lIeu optIOn IS paId m December of each
year
VacatIOn pay and SIck pay are conSIdered expendItures m the year due m the govermnental
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 assets purchased by other funds and contnbuted to the
enterpnse fund
- Retamed earnmgs of enterpnse funds are subdIVIded as follows
Reserved amounts are set aSIde by councIl resolutIOn for speCIfic expenses m future
penods
The unreserved portIOn of retamed earnmgs IS avaIlable for expendmg m future penods
- Fund balance accounts are subdIvIded as follows
Reserved accounts represent those portIOns of fund eqUIty not appropnable for
expendIture or legally separated for a future use
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, 1998
(ContInued)
NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (ContInued)
N Revenues. ExpendItures and Expenses
1 Revenues
Property taxes and special assessment pnnclpal and Interest are recogmzed as revenue
when measurable and avaIlable
Intergovernmental revenues are reported under the legal and contractual reqUIrements of
the IndIVIdual programs
Licenses and permIts, charges for servIces, fines and forfeItures, and mIscellaneous
revenues (except Investment earmngs) are recorded as revenues when measurable and
aVailable Investment earnIngs 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 dunng the month of December
The property tax IS recorded as revenue when It becomes measurable and avaIlable
Wnght County IS the collectIng agency for the levy and remIts the collectIons to the CIty
three tlmes a year Taxes not collected as of December 31 each year are shown as
delInquent taxes receIvable
December 28 IS the last day the CIty can certIfy a tax levy to the County AudItor for
collectIOn the follOWIng year Such taxes become a hen on the follOWIng January 1
The County AudItor makes up the tax hst for all taxable property In the CIty, applYIng the
apphcable tax rate to the tax capaCIty of IndIVIdual propertIes, to amve at the actual tax
for each property The County AudItor also collects all specIal assessments, except for
certaIn prepayments paid dIrectly to the CIty
The County AudItor turns over a hst of taxes to be collected on each parcel of property to
the County Treasurer In 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
Apnl 15, of each year Property owners are reqUIred to pay one-half of theIr real estate
taxes due by May 15 and the balance by October 15
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CITY OF ALBERTVILLE, MINNESOTA
NOTES TO THE FINANCIAL STATEMENTS
Year Ended December 31, 1998
(Contmued)
NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Contmued)
N Revenues, ExpendItures and Expenses (Contmued)
2 Property Tax CollectIOn Calendar (Contmued)
If taxes due May 15 are not prod on time, a penalty of3% IS assessed on homesteaded
property and 7% on non-homesteaded property An adilltIOnall % penalty IS added each
month the taxes remam unprod, 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
Ifthe 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 after
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
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
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CITY OF ALBERTVILLE, MINNESOTA
NOTES TO THE FINANCIAL STATEMENTS
Year Ended December 31, 1998
(Contmued)
NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Contmued)
P Total Columns on General Purpose Statements
Total columns on the general purpose financial statements are captIOned "memorandum
only" to mdicate that they are presented only to facilttate 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 eltmmatIOns have not been made m
the aggregatIOn of thiS data
Q Comparative Data
Comparative total data for the pnor year have been presented m the accompanymg financial
statements m order to provide an understandmg of changes m the City'S finanCial position
and operatIOns However, pnor year totals by fund type have not been presented m each of
the statements smce then mclusIOn would make the statements unduly complex and difficult
to read
Comparative data have been restated to reflect reclassificatIOns
NOTE 2 - STEWARDSHIP. COMPLIANCE AND ACCOUNTABILITY
A Fund Balance Deficits
The followmg funds had deficit fund balances at December 31, 1998
Special Revenue Fund -
CMIF
Debt Service Funds -
1988 Refundmg Bonds
1996A G 0 TIF Bonds
CapItal Projects Funds -
TIF # 6 Fraser Steel
TIF #410 - Mold-Tech
Barthel Industnal Dnve and 52nd St
Bnttany Kay Estates
North Frontage Road
Summerfield AddItion
NE Sewer and Water ExtenSIOn
ParksIde 3rd AddItion
Vetsch Custom Cabmets TIF # 8
ParkSIde 4th Addition
Cottages of AlbertvIlle TIF # 7
$ 2,552
138,658
60,830
25
3,047
9,820
318
39,176
19,363
8,279
16,480
6,186
27,700
22,892
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CITY OF ALBERTVILLE, MINNESOTA
NOTES TO THE FINANCIAL STATEMENTS
Year Ended December 31, 1998
(Contmued)
NOTE 2 - STEWARDSHIP. COMPLIANCE AND ACCOUNTABILITY (Contmued)
A Fund Balance DeficIts (Contmued)
CapItal Projects Funds - (Contmued)
Cedar Creek industrIal Park
Mamtenance BUIldmg
Cedar Creek North
Center Oaks 1 st AddItion
ParksIde CommercIal ParksIde
Secunty Bank of Maple Lake
Barthel Bus Garage TIF # 9
Karston Cove
Psyk's 7th AddItion
$ 2,481
1,408
43,731
80,887
2,441
2,349
5,399
13,854
7,378
These defiCIts WIll be elImmated by future leVIes, collectIOns of specIal assessments,
operatmg transfers, and developer reImbursements
B ExpendItures m Excess of AoproonatIOns
ExpendItures exceeded appropnatIons m the followmg funds for the year ended
December 31, 1998
ExpendItures
AppropnatIons
General Fund
SpeCIal Revenue Funds
Park Fund
CMIF Fund
$ 1,313,331
3,416
133
$ 811,768
o
o
NOTE 3 - DETAILED NOTES ON ALL FUNDS AND ACCOUNT GROUPS
A Assets
1 Cash and Investments (Includmg Cash EqUIValents)
Cash balances of the CIty'S funds are combmed (pooled) and mvested to the extent
avaIlable m vanous mvestments authonzed by Mznnesota 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 mvestmg publIc funds,
the balances and related restrIctions are summanzed below
a DeposIts - Mznnesota Statutes reqUIre that all deposIts WIth finanCIal mstItutIons must
be collateralIzed m an amount equal to 110% of deposIts m excess of FDIC
msurance
22
CITY OF ALBERTVILLE, MINNESOTA
NOTES TO THE FINANCIAL STATEMENTS
Year Ended December 31, 1998
(ContInued)
NOTE 3 - DETAILED NOTES ON ALL FUNDS AND ACCOUNT GROUPS (ContInued)
A Assets (Contmued)
1 Cash and Investments (IncludIng Cash EaUIvalents) (ContInued)
a DeposIts - (ContInued)
Category 1 - DepOSItS collateralIzed by Federal DepOSItOry Insurance (FDIC) and
those deposIts collateralIzed wIth secuntIes held by the CIty or by ItS
agent In the CIty'S name
Category 2 - CollateralIzed WIth secuntIes held by the pledgIng finanCIng InstItutIon's
trust department or agent In the CIty'S name
Category 3 - UncollateralIzed, IncludIng amounts WhICh are collateralIzed wIth
secuntIes held by the pledgIng financIal InstItutIon, or by ItS trust
department or agent, but not In the CIty'S name, or deposIts whIch are
collateralIzed but collateral not perfected
Category Bank CarryIng
1 2 3 Balance Amount
CertIficates of
DeposIt $ 551,634 $ 0 $ 49,547 $ 601,181 $ 601,181
Bank Accounts 1,235,295 0 0 1,235,295 1,115,664
Total DeposIts $ 1,786,929 $ 0 $ 49,547 $ 1,836,476 $ 1,716,845
b Investments - Mznnesota Statutes authonze the CIty to Invest In oblIgatIOns of the
U S Treasury, agenCIes and InstrumentalItIes, shares of Investment companIes whose
only mvestments are In the forementIOned secuntIes, oblIgatIOns of the State of
Mmnesota or ItS mumcIpalItIes, bankers' acceptances, future contracts, repurchase
and reverse repurchase agreements, and commercIal paper of the hIghest qualIty WIth
a maturIty 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
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CITY OF ALBERTVILLE, MINNESOTA
NOTES TO THE FINANCIAL STATEMENTS
Year Ended December 31, 1998
(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 2 - Umnsured and unregIstered, WIth secuntIes held by the counterparty's
trust department or agent m the CIty'S name
Category 3 - Umnsured and unregIstered, With secuntIes held by the counterparty, or
by ItS trust department or agent but not m the CIty'S name
Carrymg
Amount
Category Fan
1 2 3 Value
U S Government
SecurItIes $ 420,989 $ 0 $ 0 $ 420,989
Mortgage Pools 714,103 0 0 714,103
NegotIable CD's 194,000 0 0 194,000
Total $ 1,329,092 $ 0 $ 0 1,329,092
Total DepOSIts (Note 3 A 1 a) 1,716,845
Petty Cash 50
Total Cash and Investments
(Includmg Cash EqUIvalents) $ 3,045,987
ThIS amount IS claSSIfied on the combmed balance sheet as follows
Cash and Investments
(Includmg Cash EqUIvalents)
Cash Overdraft
Total
$ 3,583,585
(537,598)
$ 3,045,987
For the year ended December 31, 1998, mvestment revenue was $142,253
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CITY OF ALBERTVILLE, MINNESOTA
NOTES TO THE FINANCIAL STATEMENTS
Year Ended December 31, 1998
(Contmued)
NOTE 3 - DETAILED NOTES ON ALL FUNDS AND ACCOUNT GROUPS (Contmued)
A Assets (Contmued)
2 Due From Other Governmental Umts
The followmg IS a summary of due from other governmental umts at December 31, 1998
Ice Arena
Wnght Jomt
Fund County Powers Total
General $ 2,616 $ 0 $ 2,616
Debt ServIce 469 0 469
Storm Water Enterpnse 0 83,333 83,333
Total $ 3,085 $ 83,333 $ 86,418
3 Loan ReceIvable
The loan receIvable m the Revo1vmg Loan SpeCial Revenue Fund represents a loan to a
local company for the purpose of economIC development The note ongmated Apnl 30,
1992, and reqmres monthly payments of $ 585 m years 1-3 at an mterest rate of 1 %,
monthly payments of $ 689 m years 4-8 at an mterest rate of 3%, monthly payments of
$ 691 m years 9-13 at an mterest rate of5%, and monthly payments of$ 594 m years 14-
18 at an mterest rate of 7% The balance at December 31, 1998 was $ 68,445
4 FIxed Assets
The followmg IS a summary of changes m general fixed assets (unaudIted)
Balance Balance
1-1-98 Purchases DIsposals 12-31-98
Land $ 35,566 $ 0 $ 0 $ 35,566
Bmldmgs 113 ,409 0 0 113,409
Improvements Other
than Bmldmgs 78,169 0 0 78,169
Machmery and Eqmpment 498,552 75,248 0 573,800
Total $ 725,696 $ 75,248 $ 0 $ 800,944
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CITY OF ALBERTVILLE, MINNESOTA
NOTES TO THE FINANCIAL STATEMENTS
Year Ended December 31, 1998
(Contmued)
NOTE 3 - DETAILED NOTES ON ALL FUNDS AND ACCOUNT GROUPS (Contmued)
A Assets (Contmued)
4 FIxed Assets (Contmued)
A summary of propnetary fund type fixed assets at December 31, 1998 IS as follows
SanItary
Sewer
Fund
Land
Sewer System
EqUIpment
ConstructIOn m Progress
Total FIxed Assets
Less Accumulated DepreciatIOn
Net FIxed Assets
$ 190,269
3,552,460
84,663
41,006
3,868,398
(757,947)
$ 3,110,451
5 Deferred CompensatIOn Plan
In accordance wIth the reqUIrements of Government Accountmg Standards Board
(GASB) Statement No 32, the deferred compensatIOn plan has been elImmated from the
CIty's financial report The assets and mcome of the plan are held m trust for the
exclusIve benefit of partIcIpants and theIr beneficIanes and are managed by trustees other
than the CIty The CIty has determmed no further fiducIary relatIOnshIp eXIsts WIth
respect to the IRC Section 457 plan
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 penSIOn plans admmIstered 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 Mmnesota Statutes,
Chapters 353 and 356
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CITY OF ALBERTVILLE, MINNESOTA
NOTES TO THE FINANCIAL STATEMENTS
Year Ended December 31, 1998
(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)
PERF members belong to eIther the CoordInated 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 CoordInated Plan
PERA prOVIdes retIrement benefits as well as dIsabIlIty benefits to members, and
benefits to SurvIVorS upon death of elIgIble members Benefits are establIshed by
State Statute, and vest after three years of credIted servIce The 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 termInatIOn of servIce
Two methods are used to compute benefits for PERF's Coordmated and BaSIC Plan
members The retmng member receIves the hIgher of a step-rate benefit accrual
formula (Method 1) or a level accrual formula (Method 2) Under Method 1, the
annUIty accrual rate for a BasIC Plan member who retIres before July 1, 1997 IS 2
percent of average salary for each of the first 10 years of servIce and 2 5 percent for
each remammg year The annUIty accrual rate for BasIC members who retIre on or
after July 1, 1997 IS 2 2 percent of average salary for each of the first 10 years of
serVIce and 2 7 percent for each remaInmg year For a Coordmated Plan member
who retues before July 1, 1997, the annUIty accrual rate IS 1 percent of average salary
for each of the first 10 years and 1 5 percent for each remaInmg year For
Coordmated members who retue on or after July 1, 1997, the annUIty accrual rates
mcrease by 0 2 percent (to 1 2 percent of average salary for each of the first 10 years
and 1 7 percent for each remaInmg year) Under Method 2, the annUIty accrual rate IS
2 5 percent of average salary for BasIC Plan members and 1 5 percent for Coordmated
Plan members who retIre before July 1, 1997 AnnUIty accrual rates Increase 0 2
percent for members who retue on or after July 1, 1997 For PERF members whose
annUIty IS calculated USIng Method 1, a full annUIty IS aVailable when age plus years
of serVIce equal 90 A reduced retuement annUIty IS also avaIlable to elIgIble
members seekmg early retIrement
There are dIfferent types of annUItIes aVailable to members upon retirement A
normal annUIty IS a lIfetIme annUIty that ceases upon the death of the retIree--no
surVIvor annUIty IS payable There are also varIOUS types of Jomt and survIvor
annUIty optIOns aVailable whIch WIll reduce the monthly normal annUIty amount,
because the annUIty IS payable over JOInt lIves Members may also leave theIr
contnbutIOns m the fund upon termInatIOn of publIc servIce m order to qualIfy for a
deferred annUIty at retirement age Refunds of contnbutIOns are available at any tIme
to members who leave publIc serVIce, but before retirement benefits begIn
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CITY OF ALBERTVILLE, MINNESOTA
NOTES TO THE FINANCIAL STATEMENTS
Year Ended December 31, 1998
(Contmued)
NOTE 3 - DETAILED NOTES ON ALL FUNDS AND ACCOUNT GROUPS (Continued)
B LIabIhtIes (Contmued)
1 Defined Benefit PensIOn Plans - StatewIde (Contmued)
The benefit provIsIOns stated m the prevIOUS paragraphs of thIS sectIOn are current
prOVlSlons and apply to actIve plan partIcIpants Vested, termmated employees who
are entItled to benefits but are not receIvmg them yet are bound by the prOVISIOns m
effect at the time they last termmated theIr pubhc servIce
PERA Issues a pubhcly avaIlable finanCIal report that mcludes financIal statements
and reqUIred supplementary mformatIOn for PERF That report may be obtamed by
wntmg to PERA, 514 St Peter Street #200, St Paul, Mmnesota, 55102 or by callmg
(651) 296-7460 or 1-800-652-9026
b Fundmg Pohcy
Mmnesota Statutes Chapter 353 sets the rates for employer and employee
contnbutIOns These statutes are estabhshed and amended by the state legIslature
The CIty makes annual contnbutIOns to the penSIOn plan equal to the amount reqUIred
by state statutes PERF BasIC Plan members and Coordmated Plan members are
reqUIred to contnbute 8 75 percent and 475 percent, respectIvely, oftheIr annual
covered salary The CIty of AlbertvIlle IS reqUIred to contnbute the followmg
percentages of annual covered payroll 11 43 percent for BasIC Plan PERF members
and 5 18 percent for Coordmated Plan PERF members The CIty'S contnbutIOns to
the Pubhc Employees RetIrement Fund for the years endmg December 31, 1998,
1997, and 1996 were $ 4,905, $ 4,802, and $ 4,854, respectIvely The CIty does not
have pohce or fire employees The CIty'S contnbutIOns were equal to the
contractually reqUIred contrIbutIOns for each year as set by state statute
2 Deferred Revenue
SpeCIal Debt CapItal
General Revenue SerVIce Projects Total
Taxes ReceIvable -
Dehnquent $ 9,691 $ 0 $ 1,994 $ 0 $ 11,685
SpeCIal Assessments
ReceIvable -
Deferred 0 0 433,067 46,400 479,467
Delmquent 0 0 18,817 0 18,817
Loans ReceIvable 0 68,445 0 0 68,445
Total $ 9,691 $ 68,445 $ 453,878 $ 46,400 $ 578,414
28
CITY OF ALBERTVILLE, MINNESOTA
NOTES TO THE FINANCIAL STATEMENTS
Year Ended December 31, 1998
(Contmued)
NOTE 3 - DETAILED NOTES ON ALL FUNDS AND ACCOUNT GROUPS (Contmued)
B LIabIhtIes (Contmued)
3 Long-Term Debt
The followmg IS a summary of bond transactIOns for the year ended December 31, 1998
General
OblIgatIOn
General Special Tax
OblIgatIOn Revenue Assessment Increment Total
Balance - January 1 $ 135,000 $ 1,365,240 $ 1,095,000 $ 445,000 $ 3,040,240
AddItions 0 0 0 0 0
Retirements (15,000) (132,568) (470,000) (95,000) (712,568)
Balance - December 31 $ 120,000 $ 1,232,672 $ 625,000 $ 350,000 $ 2,327,672
Outstandmg
December 31, 1998
General ObhgatIOn Bonds
$ 175,000 General ObhgatIOn Refundmg Bonds,
Senes 1993, due m annual mstallments of$ 15,000 to
$ 20,000 through March 1, 2004, mterest at 300 to
5 00 percent
$
120,000
Revenue Bond
Mmnesota Pubhc FacIhtIes Authonty Loan, due
m annual mstallments of$ 26,728 to $ 49,149 through
August 20,2014, mterest at 332 percent
$
1,232,672
General ObhgatIOn Special Assessment Bonds
$ 505,000 Advance Refundmg and Improvement Bond
of 1988, due m annual mstallments of$ 15,000 to $ 60,000
through February 1,2000, mterest at 635 to 7 25 percent
$ 215,000 Refundmg Bonds of 1989, due m annual
mstallments of $ 5,000 to $ 25,000 through September 1,
2003, mterest at 700 to 7 75 percent
$
30,000
85,000
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CITY OF ALBERTVILLE, MINNESOTA
NOTES TO THE FINANCIAL STATEMENTS
Year Ended December 31, 1998
(Contmued)
NOTE 3 - DETAILED NOTES ON ALL FUNDS AND ACCOUNT GROUPS (Contmued)
B LiabIlItIes (Contmued)
3 Long-Term Debt (Contmued)
Bonds outstandmg at December 31, 1998, mclude the followmg Issues
General OblIgatIOn SpecIal Assessment Bonds (Contmued)
$ 115,000 General OblIgatIOn Refundmg Improvement
Bonds of 1992, due m annual mstallments of $ 10,000
to $ 15,000 through February 1, 1998, mterest at 550
percent
$ 350,000 General OblIgatIOn Improvement Bonds,
Senes I992A, due m annual mstallments of$ 15,000
to $ 35,000 through December 30, 2004, mterest at
5 70 percent
$ 675,000 General OblIgatIOn Improvement Refundmg
Bonds, Senes I993A, due m annual mstallments of
$ 20,000 to $ 95,000 through February 1,2006, mterest
at 3 40 to 5 75 percent
Total General OblIgatIOn SpeCial Assessment Bonds
General OblIgatIOn Tax Increment Bond
$ 400,000 General OblIgatIOn Tax Increment Bonds,
Senes 1996A, due m annual mstallments of $ 25,000
to $ 95,000 through February 1,2008, mterest at 425
to 5 40 percent
Outstandmg
December 31, 1998
$
45,000
185,000
$
280,000
625,000
$
350,000
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CITY OF ALBERTVILLE, MINNESOTA
NOTES TO THE FINANCIAL STATEMENTS
Year Ended December 31, 1998
(Contmued)
NOTE 3 - DETAILED NOTES ON ALL FUNDS AND ACCOUNT GROUPS (Contmued)
B LIabIhtIes (Contmued)
3 Long- Term Debt (Contmued)
The annual reqUirements to amortIze all bonded debt outstandmg as of December 31,
1998, mcludmg mterest payments of $ 560,603 are
General
OblIgation
Year Endmg General Special Tax
December 31 OblIgatIOn Revenue Assessment Increment Total
1999 $ 137,555 $ 99,930 $ 183,025 $ 110,307 $ 530,817
2000 0 99,931 164,648 42,420 306,999
2001 0 99,930 132,332 40,920 273,182
2002 0 99,931 77,235 39,420 216,586
2003 0 99,930 68,350 37,920 206,200
Thereafter 0 1,099,236 102,090 153,165 1,354,491
Total $ 137,555 $ 1,598,888 $ 727,680 $ 424,152 $ 2,888,275
C Fund EqUity
Fund eqUity balances are classIfied as follows to reflect the hmItatIOns and restnctIOns of the
respective funds
1 Fund Balance -
Fund balance IS compnsed of the followmg components
Special Debt Capital
General Revenue Service Projects Total
Reserved -
Reserved for Debt Service $ 0 $ 0 $ 514,767 $ 0 $ 514,767
Unreserved -
DeSignated for Operating
Capital 445,500 0 0 0 445,500
DeSignated for Debt Service 0 0 36,511 0 36,511
DeSignated for Capital Outlay 0 342,657 0 217,076 559,733
Undeslgnated (64,106) 1,831,425 (194,769) (313,214) 1,259,336
Total Fund Balance $ 381,394 $ 2,174,082 $ 356,509 $ (96,138) $ 2,815,847
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CITY OF ALBERTVILLE, MINNESOTA
NOTES TO THE FINANCIAL STATEMENTS
Year Ended December 31, 1998
(Contmued)
NOTE 3 - DETAILED NOTES ON ALL FUNDS AND ACCOUNT GROUPS (Contmued)
C Fund EqUIty (Contmued)
2 Retamed Earmngs -
Reserved retamed earnmgs at December 31,1998, IS as follows
EnterprIse
Reserved for Operatmg CapItal
3 ContrIbuted CapItal -
$ 97,894
ContrIbuted capItal m the enterprIse funds represents fixed assets WhICh were purchased
by other funds and transferred to the enterprIse funds Changes m contrIbuted capItal for
the year are as follows
ContrIbuted CapItal- January 1, 1998
Add Assets ContrIbuted Durmg 1998
ContrIbuted CapItal - December 31, 1998
$ 1,868,608
o
$ 1 ,868,608
NOTE 4 - SEGMENT INFORMATION
The CIty mamtams SanItary Sewer and Storm Water EnterprIse Funds Segment mformatIOn for
the year ended December 31, 1998 IS as follows
Samtary Storm
Sewer Water Total
Operatmg Revenues $ 210,072 $ 53,957 $ 264,029
DeprecIatIOn 76,956 0 76,956
Operatmg Income 3,350 36,110 39,460
Net Income (Loss) (36,957) 45,507 8,550
Net W orkmg CapItal (11,270) 208,133 196,863
Total Assets 3,194,099 217,830 3,411,929
Debt Outstandmg 1,232,672 0 1,232,672
Total EqUIty 1,926,005 208,133 2,134,138
32
CITY OF ALBERTVILLE, MINNESOTA
NOTES TO THE FINANCIAL STATEMENTS
Year Ended December 31, 1998
(ContInued)
NOTE 5 - TAX INCREMENT FINANCING
The CIty of AlbertvIlle IS the admImstenng authonty for the folloWIng tax Increment financIng
dIstncts
Name ofDIstnct Tax Increment FInancIng DIstnct # 5
Type of DIstnct
AuthonzIng Law
Year EstablIshed
DuratIOn of DIStnCt
EconomIC Development
MInnesota 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 Increment
Ongmal Net Tax CapacIty
Current Net Tax CapacIty
Captured Net Tax CapacIty-
RetaIned by CIty
$ 127
62,453
$ 62,326
Type of Bonds Issued
Total Bonds Issued
Amounts Redeemed
General OblIgatIOn Tax Increment
$ 670,000
320,000
$ 350,000
OutstandIng Bonds at December 31, 1998
Name ofDIstnct Tax Increment FInancIng DIStrICt # 6
Type of DIstnct
AuthonzIng Law
Year EstablIshed
DuratIOn of DIstnct
EconomIc Development
MInnesota T I F Act, Chapter 469 174
1989
10 years or no more than eIght years from the receIpt
of the first Increment
angInal Tax CapacIty
Current Tax CapacIty
Captured Tax CapacIty -
RetaIned by CIty
$ 127
43,486
$ 43,359
Type of Notes Issued
"Pay as You Go" - The CIty pays the developer for tax
Increments receIved In the current year
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CITY OF ALBERTVILLE, MINNESOTA
NOTES TO THE FINANCIAL STATEMENTS
Year Ended December 31, 1998
(ContInued)
NOTE 5 - TAX INCREMENT FINANCING (ContInued)
Name ofDIstnct Tax Increment FInancIng DIstnct # 8
Type of DIstnct
AuthonzIng Law
HOUSIng DIstnct
MInnesota T I F Act, Chapter 469 174, Subd 11, and
469 1761
1997
25 years after the date of receIpt of the first Increment
Year EstablIshed
DuratIOn of DIstnct
OngInal Tax CapacIty
Current Tax CapacIty
Captured Tax CapacIty-
RetaIned by CIty
ThIS mformatIOn was not
aVailable from Wnght County
Type of Notes Issued
"Pay as You Go" - The CIty pays the developer for tax
Increments receIved In the current year
Name ofDIstnct Tax Increment FInanCIng DIStrICt # 8
Type of DIstnct
AuthonzIng Law
Year EstablIshed
DuratIOn of DIstnct
EconomIC Development
MInnesota T I F Act, Chapter 469 174, Subd 12
1997
EarlIer of 9 years after the date of receIpt of the first
Increment, or 11 years after the date of approval of the
TIF plan
angInal Tax CapacIty
Current Tax CapacIty
Captured Tax CapacIty-
RetaIned by CIty
ThIS InfOrmatIOn was not
avaIlable from Wnght County
Type of Notes Issued
"Pay as You Go" - The CIty pays the developer for tax
Increments receIved In the current year
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CITY OF ALBERTVILLE, MINNESOTA
NOTES TO THE FINANCIAL STATEMENTS
Year Ended December 31, 1998
(Contmued)
NOTE 5 - TAX INCREMENT FINANCING (Contmued)
Name ofDlstnct Tax Increment Fmancmg Dlstnct # 9
Type ofDlstnct
Authonzmg Law
Year Estabhshed
Duration of Dlstnct
Econormc Development
Mmnesota T I F Act, Chapter 469 174, Subd 12
1997
Earher of9 years after the date of receipt of the first
mcrement, or 11 years after the date of approval of the
TIF Plan
Ongmal Tax Capacity
Current Tax Capacity
Captured Tax Capacity -
Retamed by City
This mformatIon was not
avatlable from Wnght County
Type of Notes Issued
"Pay as You Go" - The City pays the developer for tax
mcrements received m the current year
NOTE 6 - RISK MANAGEMENT
The City IS exposed to vanous nsk of loss related to torts, theft of, damage to and destructIOn of
assets, errors and omiSSions, mJunes to employees, and natural disasters In order to protect
agamst these nsks ofloss, the City purchases commercial msurance through the League of
Mmnesota CItIes Insurance Trust, a pubhc entIty nsk pool This pool currently operates
common nsk management and msurance programs for mumclpal entItIes The City pays an
annual premIUm to the League for ItS msurance coverage The League ofMmnesota CIties
Insurance Trust IS self-sustammg through commercial compames for excess claims The City IS
covered through the pool for any claims mcurred but unreported, however, retams nsk for the
deductible portIOn of ItS msurance pohcles The amounts of these deductlbles are considered
Immatenal to the finanCIal statements
Dunng the year ended December 31, 1998, there were no SIgnIficant reductIOns m msurance
coverage from the pnor year Settled claims have not exceeded the City's commercial coverage
many of the past three years
The City'S workers compensatIOn msurance pohcy IS retrospectIvely rated With thiS type of
pohcy, final premIUms are determmed after loss expenence, workers compensatIOn rates and
salanes for the year are known The final premIUm adjustment was recorded m the year the
adjustment was made
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CITY OF ALBERTVILLE, MINNESOTA
NOTES TO THE FINANCIAL STATEMENTS
Year Ended December 31, 1998
(Contmued)
NOTE 7 - YEAR 2000 ISSUE
The CIty of AlbertvIlle has completed an mventory of computer systems and other electromc
eqUIpment that may be affected by the year 2000 Issue and that are necessary to conductmg CIty
operatIons Based on thIs mventory, the CIty IS m the remedIatIon stage for the finanCIal
reportmg systems and other necessary systems, the CIty has contracted WIth ItS computer
operatIOns provIders for necessary upgrades Testmg and valIdatIon ofthe systems WIll need to
be completed pnor to January 1,2000
Because of the unprecedented nature of the year 2000 Issue, ItS effects and the success of related
remedIatIon efforts WIll not be fully determmable untIl the year 2000 and thereafter
Management cannot assure that the CIty IS or WIll be year 2000 ready, that the CIty'S remedIatIOn
efforts wIll be successful m whole or m part, or that partIes wIth whom the CIty does busmess
wIth WIll be year 2000 ready
36
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CITY OF ALBERTVILLE, MINNESOTA
THE GENERAL FUND
The General Fund accounts for all revenues and expendItures of a governmental umt whIch 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 vanety and number of
taxes and other general revenues than any other fund ThIS fund has flOWIng Into It such
revenues as general property taxes, lIcense and permIts, fines and penaltIes, rents, charges for
current servIces, state-shared taxes, and Interest earnIngs The fund's resources also finance a
WIder range of actIvItIes than any other fund Most of the current operatIOns of governmental
umts WIll be financed from thIS fund
CITY OF ALBERTVILLE, MINNESOTA
GENERAL FUND
CaMP ARITIVE BALANCE SHEET
December 31, 1998 and 1997
ASSETS
Cash and Investments
Taxes ReceIvable -
Delmquent
Interest ReceIvable
Due from Other Governmental Umts
TOTAL ASSETS
LIABILITIES AND FUND BALANCE
LiabIlItIes
Accounts Payable
Accrued Payroll Taxes and Benefits
Deferred Revenue
Total LIabIlItIes
Fund Balance
Unreserved -
DesIgnated for Operatmg CapItal
UndesIgnated (DeficIt)
Total Fund Balance
TOTAL LIABILITIES AND FUND BALANCE
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Totals I
1998 1997
$ 477,388 $ 463,906 I
9,691 9,691 I
35,903 25,403
2,616 2,339
$ 525,598 $ 501,339 I
I
$ 129,849 $ 15,260
4,664 3,183 I
9,691 9,691
144,204 28,134
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445,500 405,884 I
(64,106) 67,321
381,394 473,205
$ 525,598 $ 501,339 I
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I CITY OF ALBERTVILLE, MINNESOTA
I GENERAL FUND
STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCE _
I BUDGET AND ACTUAL
Year Ended December 31, 1998
WIth ComparatIve Totals for the Year Ended December 31, 1997
I Over
(Under) 1997
I Budget Actual Budget Actual
REVENUES
Taxes -
I General Property Tax $ 496,500 $ 497,188 $ 688 $ 420,471
Tax Increments 0 6,122 6,122 6,529
Total Taxes 496,500 503,310 6,810 427,000
I LIcenses and PermIts -
LIquor and Beer LIcenses 8,300 8,460 160 8,270
BUIldmg Perrmts 39,000 245,796 206,796 131,833
I Busmess PermIts 5,000 6,662 1,662 6,063
SIgn Perrmts 3,375 3,075 (300) 3,375
Other LIcenses 700 200 (500) 690
I Total LIcenses and PermIts 56,375 264,193 207,818 150,231
Intergovernmental -
Local Government AId 98,879 98,879 0 83,139
I HACA 138,220 138,167 (53) 138,141
Local Performance AId 3,136 3,136 0 2,384
Fire AId 10,985 12,257 1,272 10,280
Pohce Aid 7,785 4,197 (3,588) 3,709
I Other State AIds 4,800 5,961 1,161 3,202
Total Intergovernmental Revenue 263,805 262,597 (1,208) 240,855
I Charges for ServIces -
FIre ProtectIOn Fees 36,495 28,935 (7,560) 31 ,261
Special Assessment Searches 300 1,390 1,090 540
Park Rental Fees 2,000 1,925 (75) 2,000
I Storm Sewer Fees and Connection Fees 0 0 0 0
Other Charges for ServIces 3,000 19,810 16,810 3,970
Total Charges for ServIces 41,795 52,060 10,265 37,771
I Fmes, Forfeitures and Penalties 100 304 204 227
MIscellaneous Revenue -
I Interest 25,000 21,559 (3,441 ) 36,014
Sale of General FIxed Assets 0 2,090 2,090 2,989
Lease Payments 950 950 0 950
I ContrIbutIOns and DonatIOns 0 1,208 1,208 19,800
Other Revenues 1,500 7,460 5,960 3,621
Total MIscellaneous 27,450 33,267 5,817 63,374
I TOTAL REVENUES 886,025 1,115,731 229,706 919,458
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CITY OF ALBERTVILLE, MINNESOTA
GENERAL FUND I
STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCE-
BUDGET AND ACTUAL I
Year Ended December 31, 1998
With Comparative Totals for the Year Ended December 31, 1997
(Contmued) I
Over
(Under) 1997 I
Budget Actual Budget Actual
EXPENDITURES
General Government
Mayor and CouncIl - I
Salanes and Benefits $ 12,457 $ 12,495 $ 38 $ 12,356
Other Insurance 5,100 2,297 (2,803) 3,435
ProfessIOnal Services 5,000 4,818 ( 182) 4,138 I
Pnntmg and PublIcations 7,500 4,571 (2,929) 8,354
Travel 300 0 (300) 0
SupplIes 100 403 303 415
Dues and SubscnptlOns 2,300 2,203 (97) 2,210 I
Miscellaneous 1,400 3,932 2,532 1,000
Total Mayor and CouncIl 34,157 30,719 (3,438) 31,908
City Clerk-Treasurer and City Adrmmstrator - I
Salanes and Benefits 91,436 95,326 3,890 94,919
Accountmg and Audltmg 6,500 10,184 3,684 7,900
Contracted Services 1,950 637 (1,313) 938 I
Repairs and Mamtenance 500 93 (407) 195
EqUIpment Rental 1,000 1,089 89 944
Other Insurance 3,500 1,797 (1,703) 2,936 I
Travel 1,500 690 (810) 35
SupplIes 5,450 5,182 (268) 4,734
Dues and SubscnptIons 260 30 (230) 160
Capital Outlay 8,900 10,938 2,038 269 I
Total Clerk-Treasurer and Adrmmstra 120,996 125,966 4,970 113,030
ElectIOns -
Salanes and Benefits 3,200 3,873 673 0 I
Assessmg -
Contracted Services 7,350 7,891 541 6,611 I
Legal -
Purchased Services 18,000 26,578 8,578 24,072
Engmeer - I
Purchased Services 15,000 45,003 30,003 15,442
Plannmg and Zonmg - I
Salanes and Benefits 1,292 1,055 (237) 1,552
Contracted Services 15,500 27,647 12,147 35,320
Travel 500 0 (500) 0 I
SupplIes 200 0 (200) 226
Total Plannmg and Zonmg 17,492 28,702 11,210 37,098
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CITY OF ALBERTVILLE, MINNESOTA
I GENERAL FUND
STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCE _
I BUDGET AND ACTUAL
Year Ended December 31, 1998
WIth ComparatIve Totals for the Year Ended December 31, 1997
I (ContInued)
Over
I (Under) 1997
Budget Actual Budget Actual
EXPENDITURES (ContInued)
I General Government (ContInued)
General Government BUlldmgs -
Refuse DIsposal $ 600 $ 568 $ (32) $ 495
RepaIrS and Mamtenance 4,500 22,502 18,002 749
I Insurance 3,600 3,328 (272) 2,936
Telephone 2,500 2,931 431 3,141
SupplIes 1,200 866 (334) 1,143
UtIlItIes 4,000 3,284 (716) 2,804
I CapItal Outlay 3,600 1,066 (2,534) 1,453
MIscellaneous 41 126 85 2,160
Total General GovemmentBUlldmgs 20,041 34,671 14,630 14,881
I Total General Government 236,236 303,403 67,167 243,042
Pubhc Safety
I PolIce ProtectIon -
Contracted ServIces 103,806 103,806 0 62,963
I FIre ProtectIon -
Salanes and Benefits 23,250 9,274 (13,976) 2,248
PenSIOn Fund ContrIbutIon 17,846 19,118 1,272 14,552
Trammg 5,350 7,365 2,015 6,249
I PhYSIcals 500 2,453 1,953 2,457
AudIt - FIre Rehef AsSOCIatIOn 1,200 1,250 50 740
RepaIrs and Mamtenance 1,000 5,202 4,202 3,495
Travel 1,500 435 (1,065) 415
I Insurance 0 100 100 0
Telephone 600 578 (22) 594
SupplIes 2,500 4,323 1,823 1,266
I UtIlItIes 3,100 2,326 (774) 2,794
Dues and SubscnptIons 200 95 (105) 185
CapItal Outlay 68,600 102,754 34,154 6,351
MIscellaneous 0 0 0 100
I Total FIre ProtectIon 125,646 155,273 29,627 41,446
BUlldmg InspectIOn -
I Contracted ServIces 25,000 139,779 114,779 5,360
Al1lmal Control -
Contracted ServIces 3,000 2,018 (982) 2,412
I Total PublIc Safety 257,452 400,876 143,424 112,181
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I 40
CITY OF ALBERTVILLE, MINNESOTA I
GENERAL FUND I
STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCE -
BUDGET AND ACTUAL I
Year Ended December 31, 1998
With ComparatIve Totals for the Year Ended December 31, 1997
(ContlOued) I
Over
(Under) 1997 I
Budget Actual Budget Actual
EXPENDITURES (ContlOued)
Pubhc Works
Streets and Highways - I
Salanes and Benefits $ 43,787 $ 41,379 $ (2,408) $ 50,398
ProfessIOnal Services 0 0 0 2,695
RepaIrs and MalOtenance 31,000 15,146 (15,854) 16,053 I
Sand and Gravel 700 171 (529) 887
Street SweeplOg 2,800 2,679 (121) 2,683
Seal Coatmg 8,000 0 (8,000) 0
Telephone 750 758 8 852 I
Travel 100 16 (84) 0
SupplIes 2,900 2,693 (207) 2,406
UtlhtIes 4,654 2,743 (1,911) 2,710 I
Dues and SubscnptlOns 250 215 (35) 215
CapItal Outlay 71,800 154,725 82,925 46,209
Total Streets and Highways 166,741 220,525 53,784 125,108
Ice and Snow Removal - I
Contracted Services 6,500 2,636 (3,864) 6,860
Street Llghtmg - I
Electnclty 28,000 29,115 1,115 27,432
Total Pubhc Works 201,241 252,276 51,035 159400 I
SamtatlOn
RecyclIng - I
Contracted Services 14,580 14,580 0 12,342
Culture and RecreatIOn
Parks - I
Salanes and Benefits 38,312 35,185 (3,127) 94
Refuse DIsposal 4,340 568 (3,772) 495
RepaIrs and Mamtenance 8,200 4,607 (3,593) 4,727
EqUIpment Rental 2,500 1,463 (1,037) 1,294 I
Other Insurance 3,300 1,797 (1,503) 2,935
Telephone 700 739 39 537
Travel 0 44 44 0 I
SupplIes 800 3,818 3,018 976
UtilIties 4,156 2,324 (1,832) 2,753
Dues and SubscnptlOns 750 500 (250) 0
Fnendly CIty Days Donations 4,250 6,200 1,950 2,600 I
Ice Arena 15,000 133,333 118,333 0
Capital Outlay 9,134 147,436 138,302 275
Total Culture and Recreation 91,442 338,014 246,572 16,686 I
41 I
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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, 1998
WIth Comparative Totals for the Year Ended December 31, 1997
(Contmued)
Over
(Under) 1997
Budget Actual Budget Actual
EXPENDITURES (Contmued)
EconomIC Development
Salanes and Benefits $ 517 $ 101 $ (416) $ 477
Supphes 100 0 (100) 0
MIscellaneous 10,200 924 (9,276) 1,844
Total EconomIC Development 10,817 1,025 (9,792) 2,321
Unallocated -
Other DonatIOns 0 0 0 23,101
UnemployrnentInsurance 0 0 0 0
Other 0 3,157 3,157 4,854
Total Unallocated 0 3,157 3,157 27,955
TOTAL EXPENDITURES 811,768 1,313,331 501,563 573,927
EXCESS OF REVENUES OVER
(UNDER) EXPENDITURES 74,257 (197,600) (271,857) 345,531
OTHER FINANCING SOURCES (USES)
Operatmg Transfer In 0 105,789 105,789 0
Operatmg Transfer Out 0 0 0 (149,019)
Total Other Fmancmg Sources (Uses) 0 105,789 105,789 (149,019)
EXCESS OF REVENUES AND OTHER
FINANCING SOURCES OVER EXPENDITURES
AND OTHER FINANCING USES $ 74,257 (91,811) $ (166,068) 196,512
FUND BALANCE, January 1 473,205 552,749
RESIDUAL EQUITY TRANSFER 0 (276,056)
FUND BALANCE, December 31 $ 381,394 $ 473,205
42
CITY OF ALBERTVILLE, MINNESOTA
SPECIAL REVENUE FUNDS
COMB~GBALANCESHEET
December 31, 1998
WIth ComparatIve Totals for December 31, 1997
102 I I 201 I I 203
CapItal Revolvmg
Outlay Park Loan
Reserves Fund Fund
ASSETS
Cash and Investments $ 342,657 $ 78,861 $ 76,254
Notes ReceIvable 0 0 68,445
TOTAL ASSETS $ 342,657 $ 78,861 $ 144,699
LIABILITIES AND FUND BALANCE
Cash Overdraft $ 0 $ 0 $ 0
Deferred Revenue 0 0 68,445
Total LIabIlItIes 0 0 68,445
Fund Balance
Unreserved -
DeSIgnated for CapItal Outlay 342,657 0 0
UndesIgnated 0 78,861 76,254
Total Fund Balance 342,657 78,861 76,254
TOTAL LIABILITIES AND
FUND BALANCE $ 342,657 $ 78,861 $ 144,699
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I 204 I I 205 l I 206
I WAC Totals
SAC CMIF Fees 1998 1997
I $ 1,510,394 $ 0 $ 168,468 $ 2,176,634 $ 1,656,958
0 0 0 68,445 74,561
I $ 1,510,394 $ 0 $ 168,468 $ 2,245,079 $ 1,731,519
I $ 0 $ 2,552 $ 0 $ 2,552 $ 2,419
0 0 0 68,445 74,561
I 0 2,552 0 70,997 76,980
I 0 0 0 $ 342,657 425,075
1,510,394 (2,552) 168,468 1,831,425 1,229,464
I 1,510,394 (2,552) 168,468 2,174,082 1,654,539
I $ 1,510,394 $ 0 $ 168,468 $ 2,245,079 $ 1,731,519
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CITY OF ALBERTVILLE, MINNESOTA
SPECIAL REVENUE FUNDS I
COMBINING STATEMENT OF REVENUES, EXPENDITURES I
AND CHANGES IN FUND BALANCE
Year Ended December 31, 1998
WIth ComparatIve Totals for the Year Ended December 31, 1997 I
102 I ~ 201 I I 203
I
CapItal Revolvmg
Outlay Park Loan
Reserves Fund Fund I
REVENUES
Charges for ServIces
Park DedICatIon Fees $ 0 $ 17,900 $ 0 I
Water A vaIlabIhty Charges 0 0 0
Sewer A vaIlabIhty Charges 0 0 0
Trunk Access Charges 0 0 0 I
MIscellaneous -
Interest 23,371 3,495 3,765
DonatIons 0 5,000 0 I
Loan Repayments and Other 0 0 8,269
Total Revenues 23,371 26,395 12,034
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EXPENDITURES
Culture and RecreatIon -
Planmng Contract ServIces 0 0 0 I
ConstructIOn ServIces 0 3,416 0
MIscellaneous -
Interest 0 0 0 I
Total ExpendItures 0 3,416 0
EXCESS OF REVENUES OVER I
(UNDER) EXPENDITURES 23,371 22,979 12,034
OTHER FINANCING SOURCES (USES) I
Operatmg Transfers In 0 0 0
Operatmg Transfers Out (105,789) 0 0
Total Other Fmancmg Sources (Uses) (105,789) 0 0
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EXCESS OF REVENUES AND OTHER
FINANCING SOURCES OVER (UNDER)
EXPENDITURES AND OTHER USES (82,418) 22,979 12,034 I
FUND BALANCE (DEFICIT) - January 1 425,075 55,882 64,220
RESIDUAL EQUITY TRANSFER 0 0 0 I
FUND BALANCE (DEFICIT) - December 31 $ 342,657 $ 78,861 $ 76,254 I
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204 I , 205 I I 206
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WAC Totals
I SAC CMIF Fees 1998 1997
I $ 0 $ 0 $ 0 $ 17,900 $ 51,500
0 0 12,600 12,600 0
400,000 0 0 400,000 432,151
I 41,230 0 0 41,230 20,944
65,212 0 914 96,757 50,332
0 0 0 5,000 0
I 0 0 154,954 163,223 5,935
506,442 0 168,468 736,710 560,862
I
I 0 0 0 0 8,211
0 0 0 3,416 3,135
I 0 133 0 133 0
0 133 0 3,549 11 ,346
I 506,442 (133) 168,468 733,161 549,516
I 0 0 0 0 149,019
0 0 0 (105,789) 0
0 0 0 (105,789) 149,019
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I 506,442 (133) 168,468 627,372 698,535
1,111,781 (2,419) 0 1,654,539 679,948
I (107,829) 0 0 (107,829) 276,056
I $ 1,510,394 $ (2,552) $ 168,468 $ 2,174,082 $ 1,654,539
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CITY OF ALBERTVILLE, MINNESOTA I
DEBT SERVICE FUNDS
COMB~GBALANCESHEET I
December 31, 1998
WIth ComparatIve Totals for December 31, 1997
300 I I 317 l I 318 I I 322 I
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1992
Closed 1988 1989 Sewer I
Bond Refundmg Refundmg Trunk
Issues Bonds Bonds Bond Fund
ASSETS I
Cash and Investments $ 36,393 $ 0 $ 64,438 $ 99,873
Taxes ReceIvable -
Delmquent 508 90 238 184 I
SpecIal Assessments ReceIvable -
Deferred 39,817 21,007 8,599 67,391
Delmquent 0 0 154 0 I
Due from Other Governmental Umts 118 14 53 45
TOTAL ASSETS $ 76,836 $ 21,111 $ 73,482 $ 167,493 I
LIABILITIES AND FUND BALANCE
LIabIlItIes I
Cash Overdraft $ 0 $ 138,672 $ 0 $ 0
Deferred Revenue 40,325 21,097 8,991 67,575
Total LIabIlItIes 40,325 159,769 8,991 67,575 I
Fund Balance
Reserved for Debt ServIce 0 0 64,491 99,918 I
Unreserved -
DeSIgnated for Debt ServIce 36,511 0 0 0
UndesIgnated 0 (138,658) 0 0 I
Total Fund Balance 36,511 (138,658) 64,491 99,918
TOTAL LIABILITIES
AND FUND BALANCE $ 76,836 $ 21,111 $ 73,482 $ 167,493 I
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CITY OF ALBERTVILLE, MINNESOTA
DEBT SERVICE FUNDS
COMBINING BALANCE SHEET
December 31, 1998
With Comparative Totals for December 31, 1997
(Contmued)
353 I I 352
1990
Tax
1996A Increment
GO TIF Fmancmg Totals
Bond Fund Bonds 1998 1997
ASSETS
Cash and Investments $ 0 $ 93,719 $ 555,575 $ 735,097
Taxes ReceIvable -
Delmquent 0 0 1,994 1,993
Special Assessments ReceIvable -
Deferred 131,998 0 433,067 448,405
Delmquent 0 0 18,817 18,817
Due from Other Governmental Umts 33 0 469 2,904
$ 132,031 $ 93,719 $ 1,009,922 $ 1,207,216
LIABILITIES AND FUND BALANCE
LIabIlItIes
Cash Overdraft $ 60,863 $ 0 $ 199,535 $ 124,797
Deferred Revenue 131,998 0 453,878 469,215
192,861 0 653,413 594,012
Fund Balance
Reserved for Debt ServIce 0 93,719 514,767 667,489
Unreserved -
DeSIgnated for Debt ServIce 0 0 36,511 66,699
UndesIgnated (60,830) 0 (194,769) (120,984)
Total Fund Balance (60,830) 93,719 356,509 613,204
TOTAL LIABILITIES
AND FUND BALANCE $ 132,031 $ 93,719 $ 1,009,922 $ 1,207,216
46
REVENUES
General Property Taxes
SpeCial Assessments
Charges for Services
Miscellaneous -
Interest
Total Revenues
CITY OF ALBERTVILLE, MINNESOTA
DEBT SERVICE FUNDS
COMBINING STATEMENT OF REVENUES, EXPENDITURES
AND CHANGES IN FUND BALANCE
Year Ended December 31, 1998
With ComparatIve Totals for the Year Ended December 31, 1997
l J
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300
l I
319
318
317
Closed 1988 1989 1990
Bond Refundmg Refundmg Improvement
Issues Bonds Bonds Bond Fund
$ 22,541 $ 2,628 $ 10,020 $ 0
6,546 7,483 6,946 0
0 0 0 0
3,167 0 3,477 0
32,254 10,111 20,443 0
EXPENDITURES
Miscellaneous -
Interest
Debt Service -
Bond Pnncipal
Bond Interest and Fiscal Charges
Total Expendiwres
0 7,534 0 0
0 65,000 20,000 130,000
0 5,012 8,443 4,764
0 77 ,546 28,443 134,764
32,254 (67,435) (8,000) (134,764)
0 0 0 0
32,254 (67,435) (8,000) (134,764)
66,699 (71,223) 72,491 72,322
(62,442) 0 0 62,442
$ 36,511 $ (138,658) $ 64,491 $ 0
EXCESS OF REVENUES OVER (UNDER)
EXPENDITURES
OTHER FINANCING USES
Operatmg Transfers Out
EXCESS OF REVENUES OVER (UNDER)
EXPENDITURES AND OTHER USES
FUND BALANCE (DEFICIT) - January 1
RESIDUAL EQUITY TRANSFERS
FUND BALANCE (DEFICIT) - December 31
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I 322 I I 323 I , 324 I I 325 I I 327 I I 341 I I 342
I GO
GO 1993 GO 1988
1992 1992 Improvement 1993B Westwmd CIty Sewer and
Sewer Refundmg & Refundmg Improvement 3rd Hall Water
I Trunk Improvement Bond Bond UtilitIes Bond Revenue
Bond Fund Fund Fund Fund Fund Fund Bonds
I $ 8,520 $ 14,020 $ 0 $ 0 $ 0 $ 25,051 $ 0
58,775 7,755 90,285 268 0 0 0
0 0 0 0 0 0 11 800
I 4,446 0 7,305 1,019 927 86 0
71,741 21,775 97,590 1,287 927 25,137 11 800
I 0 568 0 0 0 0 0
30,000 15,000 85,000 80,000 45,000 15,000 75,000
I 12,255 2,888 16,023 1,956 1,204 5,970 3,169
42,255 18,456 101,023 81,956 46,204 20,970 78,169
I 29,486 3,319 (3,433) (80,669) ( 45,277) 4,167 (66369)
'I 0 0 0 0 0 0 0
29,486 3,319 (3,433) (80,669) (45,277) 4,167 ( 66,369)
I 70,432 3,732 198,520 101,448 63,120 11,712 (41,460)
0 0 0 0 0 0 107,829
I $ 99,918 $ 7,051 $ 195,087 $ 20,779 $ 17,843 $ 15,879 $ 0
( Contmued )
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CITY OF ALBERTVILLE, MINNESOTA
DEBT SERVICE FUNDS
COMBINING STATEMENT OF REVENUES, EXPENDITURES
AND CHANGES IN FUND BALANCE
Year Ended December 31, 1998
With Comparative Totals for the Year Ended December 31, 1997
(Contlnued)
351
I I
352
Tax
Increment
Fmance
Bonds
1990
Tax Increment
Fmance
Bonds
REVENUES
General Property Taxes
Special Assessments
Charges for Services
Miscellaneous -
Interest
Total Revenues
$
o
o
o
$ 64,934
o
o
3,838
68,772
952
952
EXPENDITURES
Miscellaneous -
Interest
Debt Service -
Bond Pnnclpal
Bond Interest and Fiscal Charges
Total Expendltllres
o
o
o
o
o
45,000
3,765
48,765
EXCESS OF REVENUES OVER (UNDER)
EXPENDITURES
OTHER FINANCING SOURCES (USES)
Operatlng Transfers Out
952
20,007
o
o
FINANCING SOURCES OVER (UNDER)
EXPENDITURES AND OTHER USES
952
20,007
73,712
o
FUND BALANCE (DEFICIT) - January 1
RESIDUAL EQUITY TRANSFERS
FUND BALANCE (DEFICIT) - December 31 $
3,767
o
4,719
$ 93,719
I J
353
1996A
G 0 TIF
Bonds
$ 10,851
13,062
o
o
23,913
3,942
50,000
18,733
72,675
(48,762)
o
(48,762)
(12,068)
$ (60,830)
1998
$ 158,565
191,120
11,800
25,217
386,702
12,044
655,000
84,182
751,226
(364,524)
o
(364,524)
613,204
107,829
$ 356,509
Totals
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1997
$ 156,176
234,264
27,440
37,588
455,468
7,042
460,000
110,616
577,658
(122,190)
o
(163,704)
(285,894 )
899,098
o
$ 613,204
48
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CITY OF ALBERTVILLE, MINNESOTA
CAPITAL PROJECTS FUNDS
COMBINING BALANCE SHEET
December 31, 1998
WIth ComparatIve Totals for December 31, 1997
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400 403 406 410 421
1989
AlbertvIlle Barthal
Closed Dramage TIF #6 IndustrIal
CapItal Improvement Fraser TIF #10 Dnve &
Projects Project Steel Mold-Tech 52nd Street
ASSETS
Cash and Investments $ 208,035 $ 5,814 $ 0 $ 0 $ 0
SpeCIal Assessments ReceIvable -
Deferred 0 0 0 0 0
TOTAL ASSETS $ 208.035 $ 5.814 $ 0 $ 0 $ 0
LIABILITIES AND FUND BALANCE
Llabllttles
Cash Overdraft $ 0 $ 0 $ 25 $ 3,047 $ 9,820
Accounts Payable 0 0 0 0 0
Deferred Revenue 0 0 0 0 0
Total LIabIlItIes 0 0 25 3,047 9,820
Fund Balance
Unreserved -
DesIgnated for CapItal Outlay 208,035 5,814 0 0 0
Undeslgnated 0 0 g~~ i3,047~ i9,820)
Total Fund Balance 208,035 5,814 3,047 9,820)
TOTAL LIABILITIES AND
FUND BALANCE $ 208.035 $ 5.814 $ 0 $ 0 $ 0
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CITY OF ALBERTVILLE, MINNESOTA
CAPITAL PROJECTS FUNDS
COMBINING BALANCE SHEET
December 31, 1998
With Comparative Totals for December 31, 1997
(Contmued)
433 435 436 437 438
Cottages
of Cedar Creek
Albertv1l1e Industnal Mamtenance Cedar Creek
TIP #7 Park BUlldmg The Meadows North
ASSETS
Cash and Investments $ 0 $ 0 $ 0 $ 13 $ 0
Special Assessments Receivable -
Deferred 0 0 0 0 0
TOTAL ASSETS $ 0 $ 0 $ 0 $ 13 $ 0
LIABILITIES AND FUND BALANCE
Llablltties
Cash Overdraft $ 22,034 $ 2,481 $ 1,408 $ 0 $ 40,224
Accounts Payable 858 0 0 0 3,507
Deferred Revenue 0 0 0 0 0
Total Llablllties 22,892 2,481 1,408 0 43,731
Fund Balance
Unreserved -
DeSignated for Capital Outlay 0 0 0 13 0
Undeslgnated (22,892) ?,481~ ~1,408~ 0 (43,731)
Total Fund Balance (22,892) 2,481 1,408 13 (43,731)
TOTAL LIABILITIES AND
FUND BALANCE $ 0 $ 0 $ 0 $ 13 $ 0
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439 440 441 442 443 444
Center Parkslde Secunty Barthal Bus
Oaks 1 st Commercial Bank of Garage Karston Psyk's Totals
AdditIon Parkslde Maple Lake TIP #9 Cove 7th AdditIon 1998 1997
$ 0 $ 0 $ 0 $ 0 $ 0 $ 0 $ 247,263 $ 268,615
0 0 0 0 0 0 46,400 52,200
$ 0 $ 0 $ 0 $ 0 $ 0 $ 0 $ 293,663 $ 320,815
$ 80,251 $ 2,441 $ 2,349 $ 5,399 $ 13,029 $ 161 $ 300,171 $ 156,593
636 0 0 0 825 7,217 43,230 50,684
0 0 0 0 0 0 46,400 52,200
80,887 2,441 2,349 5,399 13,854 7,378 389,801 259,477
0 0 0 0 217,076 234,992
?,441~ ?,349~ ~5,399~ f,378~ (313,214~ (173,654)
2,441 2,349 5,399 7,378 (96,138 61,338
$ 0 $ 0 $ 0 $ 0 $ 0 $ 0 $ 293,663 $ 320,815
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50
REVENUES
Property Taxes
SpecIal Assessments
Charges for ServIces
MIscellaneous Revenues -
Interest
Total Revenues
EXPENDITURES
Other
CapItal Outlay -
EngIneer Fees
Legal Fees
Other ProfessIOnal ServIces
Land
Construction ServIces
Total ExpendItures
EXCESS OF REVENUES OVER
(UNDER) EXPENDITURES
OTHER FINANCING SOURCES
OperatIng Transfers In
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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, 1998
WIth ComparatIve Totals for the Year Ended December 31, 1997
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400 403 406 410 421
1989
AlbertvIlle Barthel
Closed Dramage TIF #6 Industnal
CapItal Improvement Fraser TIF # 10 Dove &
Projects Project Steel Mold-Tech 52nd Street
$ 0 $ 0 $ 45,198 $ 0 $ 0
0 0 0 0 0
0 0 0 0 0
10,807 444 0 0 0
10,807 444 45,198 0 0
0 0 45,198 45 510
0 3,105 0 0 0
0 0 0 2,464 0
0 0 0 538 0
0 0 0 0 0
0 0 0 0 0
0 3,105 45,198 3,047 510
10,807 (2,661) 0 (3,047) (510)
0 0 0 0 0
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EXCESS OF REVENUES AND OTHER
FINANCING SOURCES OVER (UNDER)
EXPENDITURES
FUND BALANCE (DEFICIT) - January 1
FUND BALANCE (DEFICIT) - December 31
10,807
197,228
$ 208,035
(2,661)
8,475
5,814
(3,047)
o
$ (3,047)
(510)
(9,310)
$ (9,820)
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(25)
(25)
$
$
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I 423 426 427 428 429 430 431 432&434 I
Vetsch
I Bnttany North NE Sewer CSAH Parkslde Custom Parkslde
Kay Frontage Summerfield & Water 19/37 3rd CabInets 4th
Estates Road Addition Extension AdditIon AddItion TIF #8 Addition
I $ 0 $ 0 $ 0 $ 0 $ 0 $ 0 $ 0 $ 0
0 9,976 0 0 0 0 0 0
0 0 0 0 0 0 0 0
I 0 0 0 0 2,459 0 0 0
0 9,976 0 0 2,459 0 0 0
I 15 2,402 991 154 36 841 317 1,382
0 0 510 8,000 5,735 329 0 1,410
0 0 0 0 11,420 193 268 28
108 0 0 0 1,362 0 0 0
I 0 0 0 0 0 0 0 0
0 0 0 0 5,777 0 0 0
123 2,402 1,501 8,154 24,330 1,363 585 2,820
I (123 ) 7,574 (1,501) (8,154) (21,871) (1,363) (585) (2,820)
I 0 0 0 0 0 0 0 0
I (123) 7,574 (1,501) (8,154) (21,871) (1,363) (585) (2,820)
(195) (46,750) (17,862) (125) 25,085 (15,117) (5,601) (24,880)
I $ (318) $ (39,176) $ (19,363) $ (8,279) $ 3,214 $ (16,480) $ (6,186) $ (27,700)
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CITY OF ALBERTVILLE, MINNESOTA
CAPITAL PROJECTS FUNDS
COMBINING STATEMENT OF REVENUES, EXPENDITURES
AND CHANGES IN FUND BALANCE
Year Ended December 3 I, 1998
WIth Comparative Totals for the Year Ended December 31, 1997
(Contmued)
433 435 436 437 438
Cottages
of Cedar Creek
Albertvdle Industnal MaIntenance Cedar Creek
TIF #7 Park BuddIng The Meadows North
REVENUES
Property Taxes $ 0 $ 0 $ 0 $ 0 $ 0
SpecIal Assessments 0 0 0 0 0
Charges for ServIces 0 0 0 0 8,500
MIscellaneous Revenues -
Interest 0 0 0 84 0
Total Revenues 0 0 0 84 8,500
EXPENDITURES
Other 1,132 129 73 2,769 704
CapItal Outlay -
EngIneer Fees 461 0 0 0 36,783
Legal Fees 828 0 0 0 7,144
Other ProfessIonal ServIces 336 0 0 0 2,467
Land 0 0 0 0 0
Construction ServIces 0 0 0 0 0
Total ExpendItures 2,757 129 73 2,769 47,098
EXCESS OF REVENUES OVER
(UNDER) EXPENDITURES (2,757) (129) (73) (2,685) (38,598)
OTHER FINANCING SOURCES
Bond Proceeds 0 0 0 0 0
EXCESS OF REVENUES AND OTHER
FINANCING SOURCES OVER (UNDER)
EXPENDITURES (2,757) (129) (73) (2,685) (38,598)
FUND BALANCE (DEFICIT) - January 1 (20,135) (2,352) (1,335) 2,698 (5,133)
FUND BALANCE (DEFICIT) - December 31 $ (22,892) $ (2A81) $ (I A08) $ 13 $ (43,731)
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I 439 440 441 442 443 444
I Center Parkslde Secunty Barthel Bus
Oaks 1 st CommercIal Bank of Garage Karston Psyk's Totals
AddItion Park Maple Lake TIF #9 Cove 7th AddItIOn 1998 1997
I $ 0 $ 0 $ 0 $ 0 $ 0 $ 0 $ 45,198 $ 50,205
0 0 0 0 0 0 9,976 11,533
0 0 0 0 5,200 2,350 16,050 27,100
I 0 0 0 0 0 16 13,810 29,757
0 0 0 0 5,200 2,366 85,034 118,595
I 2,397 72 93 255 48 0 59,563 53,664
53,714 192 623 0 14,031 7,346 132,239 102,472
2,271 2,558 688 2,141 3,988 1,953 35,944 62,652
674 988 1,082 0 987 445 8,987 18,840
I 0 0 0 0 0 0 0 220,692
0 0 0 0 0 0 5,777 247,889
59,056 3,810 2,486 2,396 19,054 9,744 242,510 706,209
I (59,056) (3,810) (2,486) (2,396) (13,854) (7,378) (157,476) (587,614)
I 0 0 0 0 0 0 0 163,704
I (59,056) (3,810) (2,486) (2,396) (13,854) (7,378) (157,476) (423,910)
(21,831) 1,369 137 (3,003) 0 0 61,338 485,248
$ (80,887) $ (2,441 ) $ (2,349) $ (5,399) $ (13,854) $ (7,378) $ (96,138) $ 61,338
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CITY OF ALBERTVILLE, MINNESOTA
ENTERPRISE FUNDS
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Enterpnse Funds are estabhshed to account for the financIng of self-supportIng activIties of
governmental unIts whIch render servIces on a user charge basIs to the general pubhc The most
unIversal type of government enterpnse IS the pubhc utIhty engaged In the provIsIOn of such
basIc servIces as water, electncIty, and natural gas SanItary sewer systems financed by user
charges have also assumed the status of pubhc utIhty operatIOns In many urban areas, and many
cIties have combIned water and sewer systems under the same management
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CITY OF ALBERTVILLE, MINNESOTA
I ENTERPRISE FUNDS
I COMBINING BALANCE SHEET
December 31, 1998
WIth ComparatIve Totals for December 31, 1997
I 601 I I 604
I Samtary Storm Totals
ASSETS Sewer Water 1998 1997
CURRENT ASSETS
I Cash and Cash EqUIvalents $ 0 $ 126,725 $ 126,725 $ 197,071
Due From Other Governments 0 83,333 83,333 0
Accounts ReceIvable 83,648 7,772 91,420 74,747
Total Current Assets 83,648 217,830 301,478 271,818
I FIXED ASSETS
Land 190,269 0 190,269 190,269
I Sewer Plant and LInes 3,552,460 0 3,552,460 3,552,460
MachInery and EqUIpment 84,663 0 84,663 84,663
ConstructIon In Progress 41,006 0 41,006 0
I Total Cost 3,868,398 0 3,868,398 3,827,392
Less Accumulated DeprecIatIon (757,947) 0 (757,947) (680,991)
Net FIXed Assets 3,110,451 0 3,110,451 3,146,401
I TOTAL ASSETS $ 3,194,099 $ 217,830 $ 3,411,929 $ 3,418,219
LIABILITIES AND FUND EQUITY
I CURRENT LIABILITIES
Cash Overdraft $ 35,340 $ 0 $ 35,340 $ 0
Accounts Payable 82 9,697 9,779 2,391
Current MatuntIes of Bonds Payable 59,496 0 59,496 57,568
I Total Current LIabIlItIes 94,918 9,697 104,615 59,959
LONG-TERM DEBT, LESS CURRENT PORTION
I Bonds Payable 1,173,176 0 1,173,176 1,232,672
Total LIabIlItIes 1,268,094 9,697 1,277,791 1,292,631
I FUND EQUITY
Contnbuted CapItal 1,868,608 0 1,868,608 1,868,608
RetaIned EarnIngs -
I Reserved for OperatIng CapItal 97,894 0 97,894 94,354
Unreserved (40,497) 208,133 167,636 162,626
Total Fund EqUIty 1,926,005 208,133 2,134,138 2,125,588
I TOTAL LIABILITIES AND
FUND EQUITY $ 3,194,099 $ 217,830 $ 3,411,929 $ 3,418,219
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I CITY OF ALBERTVILLE, MINNESOTA
ENTERPRISE FUNDS
I COMBINING STATEMENT OF REVENUES, EXPENSES AND
CHANGES IN RETAINED EARNINGS
Year Ended December 31, 1998
I WIth ComparatIve Totals for the Year Ended December 31, 1997
I 601 I l 604
SanItary Storm Totals
I Sewer Water 1998 1997
OPERATING REVENUES
Charges for ServIces $ 206,941 $ 53,638 $ 260,579 $ 233,849
I PenaltIes 3,131 319 3,450 3,948
Total OperatIng Revenues 210,072 53,957 264,029 237,797
I OPERATING EXPENSES
Salanes and Benefits 7,073 0 7,073 0
RepaIrs and MaIntenance 6,018 10,421 16,439 13,792
I EngIneer Fees 0 2,842 2,842 3,657
Legal Fees 550 55 605 50
SupplIes 4,183 0 4,183 1,558
I ProfessIOnal ServIces 109,893 4,529 114,422 86,197
Insurance 1,797 0 1,797 4,319
DepreCIatIon 76,956 0 76,956 77,877
I MIscellaneous 252 0 252 554
Total OperatIng Expenses 206,722 17,847 224,569 188,004
OPERATING INCOME 3,350 36,110 39,460 49,793
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NON-OPERATING REVENUES
(EXPENSES)
I Interest Income 2,055 9,397 11,452 11,308
Interest Expense and FIscal Charges (42,362) 0 (42,362) (44,227)
Total Non-OperatIng Revenues
I (Expenses) (40,307) 9,397 (30,910) (32,919)
NET INCOME (LOSS) (36,957) 45,507 8,550 16,874
I RETAINED EARNINGS - January 1 94,354 162,626 256,980 240,106
I RETAINED EARNINGS - December 31 $ 57,397 $ 208,133 $ 265,530 $ 256,980
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CITY OF ALBERTVILLE, MINNESOTA
ENTERPRISE FUNDS
COMBINING STATEMENT OF CASH FLOWS
Year Ended December 31, 1998
WIth Comparative Totals for the Year Ended December 31, 1997
CASH FLOWS FROM OPERATING ACTIVITIES
OperatIng Income
Adjustments to ReconcIle OperatIng Income to
Net Cash ProvIded (Used) by OperatIng ActivIties
Depreciation
Change In Assets and LIabIlIties
(Increase) In Accounts ReceIvable
Increase (Decrease) In Accounts Payable
Total Adjustments
Samtary Storm
Sewer Water
$ 3,350 $ 36,110
76,956 0
(16,090) (83,916)
(2,309) 9,697
58,557 (74,219)
61,907 (38,109)
Net Cash ProVIded (Used) by OperatIng ActiVIties
CASH FLOWS FROM CAPITAL AND RELATED FINANCING
ACTIVITIES
PnncIpal Payments on Bonds
Interest and FIscal Charges Paid on Bonds
AcqUisItion of FlXed Assets
Net Cash (Used) by CapItal and Related FInanCIng ActiVIties
(57,568) 0
(42,362) 0
(41,006) 0
(140,936) 0
2,055 9,397
(76,974) (28,712)
41,634 155,437
$ (35,340) $ 126,725
CASH FLOWS FROM INVESTING ACTIVITIES
Interest on Investments
Net Increase (Decrease) In Cash and Cash EqUivalents
Cash and Cash EqUivalents, January 1
Cash and Cash EqUivalents, December 31
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CITY OF ALBERTVILLE, MINNESOTA
GENERAL LONG-TERM DEBT
ACCOUNT GROUP
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General oblIgatIOn bonds and other forms of long-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 F or 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
STATEMENT OF GENERAL LONG-TERM DEBT
December 31, 1998 and 1997
AMOUNT AVAILABLE AND TO BE PROVIDED
FOR PAYMENT OF GENERAL LONG-TERM DEBT
Amount AvaIlable m Debt ServIce Funds
Amount to be ProvIded for Retirement of
General Long-Term Debt
1998 1997
$ 356,509 $ 613,204
738,491 1,136,796
$ 1,095,000 $ 1,750,000
$ 0 $ 75,000
30,000 95,000
85,000 105,000
0 45,000
0 130,000
45,000 60,000
185,000 215,000
280,000 365,000
0 80,000
120,000 135,000
0 45,000
350,000 400,000
$ 1,095,000 $ 1,750,000
TOTAL AVAILABLE AND TO BE PROVIDED
GENERAL LONG-TERM DEBT
G 0 Sewer and Water Revenue Bonds of 1988
G 0 Advance Refundmg and Improvement Bond of 1988
G 0 Refundmg Bond of 1989
GO Tax Increment Bonds of 1990
G 0 Improvement Bond of 1990
G 0 Refundmg Improvement Bond of 1992
G 0 Improvement Bonds, Senes 1992A
GO Improvement Refundmg Bonds, Senes 1993A
G 0 Improvement Refundmg Bonds, Senes 1993B
GO Improvement Refundmg Bonds, Senes 1993C
GO Improvement Refundmg Bonds, Senes 1994A
G 0 Tax Increment Bonds, Senes 1996A
TOTAL GENERAL LONG-TERM DEBT
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CITY OF ALBERTVILLE, MINNESOTA
STATEMENT OF SOURCES AND USES OF PUBLIC FUNDS
FOR ECONOMIC DEVELOPMENT DISTRICT NO 1
TAX INCREMENT FINANCING DISTRICT NO 5
December 31, 1998
(UnaudIted)
Accounted
Amended For m Pnor Current Amount
Budget Budget Years Year Remammg
Sources of Funds
Bond Proceeds $ 253,147 653,147 $ 665,213 $ 75,785 $ (87,851)
Excess Tax Increments 0 0 60,000 0 (60,000)
SpecIal Assessments 0 0 0 13,062 (13,062)
Tax Increments 0 0 456,532 0 (456,532)
Interest Earnmgs 0 0 53,804 2,763 (56,567)
Other 0 49,500 3,182 0 46,318
Total Sources of Funds 253,147 702,647 1,238,731 91,610 (627,694)
Uses of Funds
ConstructIOn and Improvements 196,856 396,856 425,665 5,777 (34,586)
RtghtofWay 0 185,000 220,692 0 (35,692)
AdmmtstratIve Costs 10,000 10,000 10,000 0 0
Legal Costs 3,161 3,161 57,190 11,420 (65,449)
Engmeenng 30,098 55,098 44,754 8,840 1,504
Other ProfessIOnal ServIces 0 0 8,431 1,362 (9,793)
TIF Consultants 6,984 6,984 0 0 6,984
Costs of Bond Issuance 6,048 30,048 32,002 0 (1,954)
Contmgency 0 15,500 0 0 15,500
Bond Payments -
PnncIpal 0 0 225,000 95,000 (320,000)
Interest and FIscal Agent Fees 0 0 119,793 22,498 (142,291)
Total Uses of Funds 253,147 702,647 1,143,527 144,897 (585,777)
DIStnCt Balance $ 0 $ 0 $ 95,204 $ (53,287) $ (41,917)
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CITY OF ALBERTVILLE, MINNESOTA
STATEMENT OF SOURCES AND USES OF PUBLIC FUNDS
FOR ECONOMIC DEVELOPMENT DISTRICT NO 1
TAX INCREMENT FINANCING DISTRICT NO 6
December 31, 1998
(UnaudIted)
Accounted
For m Pnor Current Amount
Budget Years Year Remmmng
Sources of Funds
Bond Proceeds $ 329,933 $ 0 $ 0 $ 329,933
Tax Increments 0 202,451 45,198 (247,649)
Total Sources of Funds 329,933 202,451 45,198 82,284
Uses of Funds
Land AcqUISItIon 121,000 121,000 0 0
SIte Improvements 192,533 81,476 45,198 65,859
Legal Costs 2,900 0 0 2,900
Bond Counsel 2,000 0 0 2,000
TIP Consultant 2,500 0 0 2,500
FmancIal AdVIsor 3,000 0 0 3,000
CIty AdmImstratlOn 6,000 0 0 6,000
Total Uses of Funds 329,933 202,476 45,198 82,259
DIStnCt Balance $ 0 $ (25) $ 0 $ 25
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CITY OF ALBERTVILLE, MINNESOTA
STATEMENT OF SOURCES AND USES OF PUBLIC FUNDS
FOR ECONOMIC DEVELOPMENT DISTRICT NO 1
TAX INCREMENT FINANCING DISTRICT NO 7
December 31, 1998
(UnaudIted)
Accounted
For m Pnor Current Amount
Budget Years Year Rema1ll1ng
Sources of Funds
Developer Escrows $ 0 $ 1,850 $ 0 $ (1,850)
Tax Increments 390,000 0 0 390,000
Total Sources of Funds 390,000 1,850 0 388,150
Uses of Funds
Land AcqmsItIon 0 0 0 0
SIte Improvements 0 0 0 0
SOlI CorrectIOns 0 0 0 0
Parkmg 0 0 0 0
Sewer, Water, and Storm
UtIhtIes 0 0 0 0
Engmeer Fees 0 8,239 461 (8,700)
Legal Fees 0 12,785 828 (13,613)
Other ProfeSSIOnal SefV1ces 0 961 336 (1,297)
Unallocated 390,000 * 0 1,132 388,868
Total Uses of Funds 390,000 21,985 2,757 365,258
DIstnct Balance $ 0 $ (20,135) $ (2,757) $ 22,892
*
The Tax Increment Fmancmg Plan for Tax Increment DIStnct No 7 adopted by the CIty CouncIl
on May 20, 1997 does not mc1ude an allocatIOn of budgeted costs
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CITY OF ALBERTVILLE, MINNESOTA
STATEMENT OF SOURCES AND USES OF PUBLIC FUNDS
FOR ECONOMIC DEVELOPMENT DISTRICT NO 1
TAX INCREMENT FINANCING DISTRICT NO 8
December 31, 1998
(UnaudIted)
Accounted
For m Pnor Current Amount
Budget Years Year Remammg
Sources of Funds
Developer Escrows $ 0 $ 1,300 $ 0 $ (1,300)
Tax Increments 75,000 0 0 75,000
Total Sources of Funds 75,000 1,300 0 73,700
Uses of Funds
Land AcqUISItIon 0 0 0 0
SIte Improvements 0 0 0 0
SoIl CorrectIOns 0 0 0 0
Sewer, Water, and Storm
UtIlItIes 0 0 0 0
Footmgs 0 0 0 0
Parkmg 0 0 0 0
Engmeer Fees 0 1,985 0 (1,985)
Legal Fees 0 4,392 268 (4,660)
Other ProfessIOnal ServIces 0 524 0 (524)
Unallocated 75,000 * 0 317 74,683
Total Uses of Funds 75,000 6,901 585 67,514
DIStnct Balance $ 0 $ (5,601) $ (585) $ 6,186
*
The Tax Increment Fmancmg Plan for Tax Increment DIStnCt No 8 adopted by the CIty CounCIl
on May 20, 1997 does not mclude an allocation of budgeted costs
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CITY OF ALBERTVILLE, MINNESOTA
STATEMENT OF SOURCES AND USES OF PUBLIC FUNDS
FOR ECONOMIC DEVELOPMENT DISTRICT NO 1
TAX INCREMENT FINANCING DISTRICT NO 9
December 31, 1998
(UnaudIted)
Accounted
For In Pnor Current Amount
Budget Years Year RemaInIng
Sources of Funds
Developer Escrows $ 0 $ 900 $ 0 $ (900)
Tax Increments 54,900 0 0 54,900
Total Sources of Funds 54,900 900 0 54,000
Uses of Funds
Land AcqUISItion 0 0 0 0
SIte Improvements 0 0 0 0
SoIl Corrections 0 0 0 0
Sewer, Water, and Storm
UtilIties 0 0 0 0
FootIngs 0 0 0 0
ParkIng 0 0 0 0
EngIneer Fees 0 291 0 (291 )
Legal Fees 0 3,187 2,141 (5,328)
Other ProfeSSIOnal ServIces 0 425 0 (425)
Unallocated 54,900 * 0 255 54,645
Total Uses of Funds 54,900 3,903 2,396 48,601
DIstnct Balance $ 0 $ (3,003) $ (2,396) $ 5,399
*
The Tax Increment FInancIng Plan for Tax Increment DIStrict No 9 adopted by the CIty CounCIl
on November 3, 1997 does not Include an allocatIOn of budgeted costs
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CITY OF ALBERTVILLE, MINNESOTA
INDEPENDENT AUDITORS' REPORT ON
COMPLIANCE WITH MINNESOTA STATUTES
March 3, 1999
Honorable Mayor and City CounCIl
CIty of AlbertvIlle
AlbertvIlle, MInnesota
We have audited the general purpose financIal statements ofthe CIty of AlbertvIlle as of and for
the year ended December 31, 1998, and have ISSUed our report thereon dated March 3, 1999
We conducted our audIt m accordance WIth generally accepted audIting standards and the
provISIons of the Mmnesota Legal Complzance Audzt Guzde for Local Government, promulgated
by the Legal Comphance Task Force pursuant to Mmnesota Statute Sec 6 65 Accordmgly, the
audIt mcluded such tests of the accountmg records and such other audIting procedures as we
conSIdered necessary m the CIrcumstances
The Mmnesota Legal Complzance Audzt Guzde for Local Government covers five mam
categones of comphance to be tested contractmg and bIddmg, depOSIts and mvestments,
conflIcts of mterest, pubhc mdebtedness, and clmms and dIsbursements Our study mcluded all
of the hsted categones The results of our tests mdIcate that for the Items tested the CIty
comphed WIth the matenal terms and condItions of apphcable legal prOViSIons, except as
descnbed on the followmg page Further, for the Items not tested, based on our audit and the
procedures referred to above, nothmg came to our attention to mdIcate that the CIty had not
comphed WIth such legal proVISIOns
ThIS report IS mtended solely for the use ofthe CIty and should not be used for any other
purpose ThIS restnctIOn IS not mtended to hmIt the dIstnbutIon of tills report, whICh IS a matter
of pubhc record
~,~~/r#I
KERN, DEWENTER, VIERE, L TD
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CITY OF ALBERTVILLE, MINNESOTA
FINDINGS ON COMPLIANCE WITH MINNESOTA STATUTES
Year Ended December 31, 1998
CURRENT AND PRIOR YEAR FINDING
Collateral
Mmnesota 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, 1998, were unsecured as follows
110% of DeposIts In
Excess of FDIC at
December 31, 1997
Market Value
of Collateral at
December 31, 1997
Unsecured
State Bank of Rogers
$
558,617
$
504,115
$ 54,502
We recommend the CIty momtor collateral to ensure proper collateralIzatIon
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