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1999 Audited Financial Statements I I I I I I I I I I I I I I I I I I I CITY OF ALBERTVILLE, MINNESOTA TABLE OF CONTENTS ELECTED OFFICIALS AND ADMINISTRATION INDEPENDENT AUDITORS' REPORT GENERAL PURPOSE FINANCIAL STATEMENTS - Combmed Balance Sheet - All Fund Types and Account Groups Combmed Statement of Revenues, ExpendItures and Changes m Fund Balance - All Governmental Fund Types Combmed Statement of Revenues, ExpendItures and Changes m Fund Balance- Budget and Actual - General and SpecIal Revenue Fund Types Combmed Statement of Revenues, Expenses and Changes m Retamed Earnmgs- All Propnetary Fund Types Combmed Statement of Cash Flows - All Propnetary Fund Types Notes to the FmancIal 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 - Combmmg Balance Sheet Combmmg Statement of Revenues, ExpendItures and Changes m Fund Balance Debt ServIce Funds Combmmg Balance Sheet Combmmg Statement of Revenues, ExpendItures, and Changes m Fund Balance CapItal Projects Funds - Combmmg Balance Sheet Combmmg Statement of Revenues, ExpendItures and Changes m Fund Balance Enterpnse Funds - Combmmg Balance Sheet CombImng Statement of Revenues, Expenses, and Changes m Retamed Earnmgs Combmmg Statement of Cash Flows Statement of General FIxed Assets (UnaudIted) Statement of General Long-Term Debt INDEPENDENT AUDITORS' REPORT ON COMPLIANCE WITH MINNESOTA STATUTES FINDINGS AND CORRECTIVE ACTION PLANS ON COMPLIANCE WITH MINNESOTA STATUTES 1 2 4 5 6 7 8 9 38 39 44 45 46 48 50 53 56 57 58 59 60 62 63 I I I I I I I I I I I I I I I I I I I CITY OF ALBERTVILLE, MINNESOTA ELECTED OFFICIALS AND ADMINISTRATION December 31, 1999 Elected OffiCials PosItion Term ExpIres John Olson Duane Bemmg ** Robert Gunderson Patncla Stalberger * John Vetsch Gary McCormack ** KeIth FranklIn * Mayor CouncIl Member CouncIl Member CouncIl Member CouncIl Member CouncIl Member CouncIl Member December 31,2000 December 31, 2000 December 31, 2002 December 31,2000 December 31, 2000 December 31, 2000 December 31,2000 Appomted Lmda Goeb Admmlstrator Indefimte * Pamcla Stalberger reSIgned December 31, 1999 KeIth Franklm was appomted to fill her posItion, effective January 1, 2000 ** Duane Bemmg reSIgned December 6, 1999 Gary McCormack was appomted to fill hIS posItion, effective December 6, 1999 1 .,.~ =1 Kern, DeWenler, Viere, Ltd. .~&JV Cerlifled Public Accountants I I I I I I I I I I I I I I I I I I I INDEPENDENT AUDITORS' REPORT June 29, 2000 Honorable Mayor and CIty CouncIl CIty of AlbertvIlle AlbertvIlle, Mmnesota We have audIted the accompanymg general purpose financial statements of the CIty of AlbertvIlle, Mmnesota, as of and for the year ended December 31, 1999, as hsted m the table of contents These general purpose financIal statements are the responsIbIhty of the CIty'S management Our responsIbIhty IS to express an opmIOn on these general purpose financIal statements based on our audIt Except as dIscussed m the followmg paragraph, we conducted our audIt m accordance wIth generally accepted audIting standards Those standards reqmre 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 exammmg, on a test basIS, eVIdence supportmg the amounts and dIsclosures m the general purpose finanCial statements An audIt also mcludes assessmg the accountmg pnncIples used and sIgmficant estimates made by management, as well as evaluatmg the overall general purpose finanCIal statement presentation We beheve that our audIt prOVides a reasonable basIS for our opmIOn Because the CIty does not mamtam adequate hIstoncal cost fixed asset accountmg records, It was not practicable to extend our audItmg procedures to enable us to express, and we do not express, an opmIOn on the balance sheet of the general fixed asset account group as of December 31, 1999 In our opmIOn, except for the effects of such adjustment, If any, as mIght have been determmed to be necessary had we audIted the general fixed asset account group, the general purpose finanCial statements referred to above present faIrly, mall matenal respects, the finanCial pOSItion of the CIty of AlbertvIlle, Mmnesota, as of December 31, 1999, 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 7600 Bass Lake Roaci SUite 104 Mmneapolls, MN 55428 612-537-3011 · Fax 612-537-9682 220 Park Avenue South, PO Box 1304 St Cloud, MN 56302 320-251-7010 · Fax 320-251-1784 2 www kdv com I I I I I I I I I I I I I I I I I I I Our audIt was performed for the purpose of formmg an opmIOn on the general purpose financIal statements taken as a whole The combmmg 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, Mmnesota Such mformatIon has been subjected to the audItmg procedures applIed m the audIt ofthe general purpose financIal statements and, m our opmIOn, IS faIrly stated m all matenal respects m relation to the general purpose financIal statements taken as a whole K-tA-I-1 1)~~ll-t~, V~I L+-d Kern, DeWenter, VIere, Ltd St Cloud, MInnesota 3 CITY OF ALBERTVILLE, MINNESOTA I COMBINED BALANCE SHEET - ALL FUND TYPES AND ACCOUNT GROUPS I December 31, 1999 Governmental Fund Types I Special Debt I ASSETS AND OTHER DEBITS General Revenue Service Assets Cash and Investments (Includmg Cash I EqUivalents) $ 830,162 $ 2,576,673 $ 465,849 Cash m Trust 0 0 2,224 Restncted Cash m Trust 0 0 77 ,904 Taxes Receivable - I Dehnquent 18,655 0 3,274 Special Assessments Receivable - Deferred 0 0 1,795,596 I Dehnquent 0 0 30,878 Accounts Receivable 0 0 0 Interest Receivable 7,710 0 0 Due from Other Governmental Umts 823 0 170 I Notes Receivable 0 137,676 0 Fixed Assets - Net 0 0 0 Other Debits I Amount Avatlable m Debt Service Funds 0 0 0 Amount to be Provided for Retirement of General Long-Term Debt 0 0 0 TOTAL ASSETS AND I OTHER DEBITS $ 857 ,350 $ 2,714,349 $ 2,375,895 LIABILITIES, EQUITY AND OTHER CREDITS I Liabilities Cash Overdraft $ 0 $ 2,663 $ 174,929 Accounts Payable 443,062 0 0 I Contracts and Retamages Payable 0 0 0 Accrued Payroll Taxes and Benefits 6,271 0 0 Deferred Revenue 18,655 137,676 1,829,748 Bonds Payable 0 0 0 I Revenue Notes Payable 0 0 0 Total Ltabihttes 467,988 140,339 2,004,677 EqUity and Other Credits I Investment m General Fixed Assets 0 0 0 Contnbuted Capital 0 0 0 Retamed Eammgs - I Reserved 0 0 0 Unreserved 0 0 0 Fund Balance - Reserved 0 0 436,948 I Unreserved - DeSignated 500,000 358,717 108,071 Undesignated (110,638) 2,215,293 (173,801) I Total EqUity and Other Credits 389,362 2,574,010 371,218 TOTAL LIABILITIES, EQUITY AND OTHER CREDITS $ 857 ,350 $ 2,714,349 $ 2,375,895 I The notes to the financial statements are an mtegral part of thiS statement I I I I Propnetary Fund Type Account Groups General I FIxed General Totals CapItal Assets Long-Term (Memorandum Only) Projects Enterpnse (UnaudIted) Debt 1999 1998 I $ 365,358 $ 406,930 $ 0 $ 0 $ 4,644,972 $ 3,583,585 776,852 0 0 0 779,076 0 0 0 0 0 77,904 0 I 0 0 0 0 21,929 11,685 I 14,000 0 0 0 1,809,596 479,467 0 0 0 0 30,878 18,817 160,503 64,917 0 0 225,420 91,420 0 0 0 0 7,710 35,903 I 0 129,164 0 0 130,157 86,418 0 0 0 0 137,676 68,445 0 3,738,007 962,893 0 4,700,900 3,911,395 I 0 0 0 371,218 371,218 356,509 0 0 0 3,078,782 3,078,782 738,491 I $1,316,713 $ 4,339,018 $ 962,893 $ 3,450,000 $ 16,016,218 $ 9,382,135 I $ 995,777 $ 192,592 $ 0 $ 0 $ 1,365,961 $ 537,598 I 56,341 34,539 0 0 533,942 182,858 271 ,273 0 0 0 271,273 0 0 0 0 0 6,271 4,664 14,000 0 0 0 2,000,079 578,414 I 0 0 0 3,450,000 3,450,000 1,095,000 0 1,173,113 0 0 1,173,113 1,232,672 1,337,391 1,400,244 0 3,450,000 8,800,639 3,631,206 I 0 0 962,893 0 962,893 800,944 0 2,353,519 0 0 2,353,519 1,868,608 I 0 97,894 0 0 97,894 97,894 0 487,361 0 0 487,361 167,636 I 0 0 0 0 436,948 514,767 410,800 0 0 0 1,377,588 1,041,744 I (431,478) 0 0 0 1,499,376 1,259,336 (20,678) 2,938,774 962,893 0 7,215,579 5,750,929 I $1,316,713 $ 4,339,018 $ 962,893 $ 3,450,000 $ 16,016,218 $ 9,382,135 4 I CITY OF ALBERTVILLE, MINNESOTA I COMBINED STATEMENT OF REVENUES, EXPENDITURES, I AND CHANGES IN FUND BALANCE - ALL GOVERNMENTAL FUND TYPES Year Ended December 31, 1999 Governmental Fund Types I SpecIal Debt General Revenue ServIce REVENUES I Taxes $ 584,924 $ 0 $ 121,554 SpecIal Assessments 0 0 123,893 LIcenses and PermIts 121,839 0 0 I Intergovernmental Revenues 287,302 42,471 0 Charges for ServIces 46,499 652,576 0 Fmes 152 0 0 MIscellaneous Revenues 60,986 109,092 21,313 I Total Revenues 1,101,702 804,139 266,760 EXPENDITURES I Current - General Government 249,895 0 0 PublIc Safety 343,922 0 0 I PublIc Works 188,412 0 0 SamtatIOn 18,573 0 0 Culture and RecreatIOn 92,175 160,632 0 EconomIc Development 924 75,000 0 I MIscellaneous 0 111 13,351 CapItal Outlay 0 0 0 Debt ServIce - I PnncIpal 0 0 265,000 Interest and FIscal Charges 0 0 56,793 Total ExpendItures 893,901 235,743 335,144 I EXCESS OF REVENUES OVER (UNDER) EXPENDITURES 207,801 568,396 (68,384) I OTHER FINANCING SOURCES (USES) Sale of General FIxed Assets 501 0 0 Operatmg Transfers In 0 0 0 I Operatmg Transfers Out 0 0 0 Bond Proceeds 0 0 83,093 Total Other Fmancmg Sources (Uses) 501 0 83,093 I EXCESS OF REVENUES AND OTHER FINANCING SOURCES OVER (UNDER) EXPENDITURES AND OTHER FINANCING USES 208,302 568,396 14,709 I FUND BALANCE - January 1, (as prevIously stated) 381,394 2,174,082 356,509 PRIOR PERIOD ADJUSTMENT (200,334) 0 0 I FUND BALANCE - January 1, (as restated) 181,060 2,174,082 356,509 I RESIDUAL EQUITY TRANSFER 0 (168,468) 0 FUND BALANCE - December 31 $ 389,362 $ 2,574,010 $ 371,218 I The notes to the finanCIal statements are an mtegral part of thIS statement I I 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, 1999 General Fund I Over I (Under) Budget Actual Budget REVENUES Taxes $ 558,853 $ 584,924 $ 26,071 I LIcenses and PermIts 55,550 121,839 66,289 Intergovernmental Revenues 282,556 287,302 4,746 Charges for ServIces 43,000 46,499 3,499 I Fmes 100 152 52 MIscellaneous Revenues 25,950 60,986 35,036 Total Revenues 966,009 1,101,702 135,693 I EXPENDITURES Current - I General Government 221,339 249,895 28,556 PublIc Safety 236,236 343,922 107,686 PublIc Works 234,102 188,412 (45,690) I SanItatIOn 17,500 18,573 1,073 Culture and RecreatIOn 115,065 92,175 (22,890) EconomIC Development 817 924 107 I MIscellaneous 0 0 0 Total ExpendItures 825,059 893,901 68,842 EXCESS OF REVENUES OVER (UNDER) I EXPENDITURES 140,950 207,801 66,851 OTHER FINANCING SOURCES (USES) I Sale of General FIxed Assets 0 501 501 EXCESS OF REVENUES AND OTHER FINANCING I SOURCES OVER (UNDER) EXPENDITURES AND OTHER FINANCING USES $ 140,950 208,302 $ 67,352 FUND BALANCE - January 1, (as preVIously stated) 381,394 I PRIOR PERIOD ADJUSTMENT (200,334) I FUND BALANCE - January 1, (as restated) 181,060 RESIDUAL EQUITY TRANSFER 0 I FUND BALANCE - December 31 $ 389,362 The notes to the finanCIal statements are an mtegral part of thIS statement I I ------ --- --- - I I I I Totals SpecIal Revenue Funds (Memorandum Only) I Over Over (Under) (Under) Budget Actual Budget Budget Actual Budget I $ 0 $ 0 $ 0 $ 558,853 $ 584,924 $ 26,071 0 0 0 55,550 121,839 66,289 0 42,471 42,471 282,556 329,773 47,217 I 0 652,576 652,576 43,000 699,075 656,075 0 0 0 100 152 52 0 109,092 109,092 25,950 170,078 144,128 I 0 804,139 804,139 966,009 1,905,841 939,832 I 0 0 0 221,339 249,895 28,556 0 0 0 236,236 343,922 107,686 I 0 0 0 234,102 188,412 (45,690) 0 0 0 17,500 18,573 1,073 0 160,632 160,632 115,065 252,807 137,742 0 75,000 75,000 817 75,924 75,107 I 0 111 111 0 111 111 0 235,743 235,743 825,059 1,129,644 304,585 I 0 568,396 568,396 140,950 776,197 635,247 I 0 0 0 0 501 501 I $ 0 568,396 $ 568,396 $ 140,950 776,698 $ 635,748 I 2,174,082 2,555,476 0 (200,334) I 2,174,082 2,355,142 I (168,468) (168,468) $ 2,574,010 $ 2,963,372 I 6 I I CITY OF ALBERTVILLE, MINNESOTA COMBINED STATEMENT OF REVENUES, EXPENSES AND I CHANGES IN RETAINED EARNINGS - ALL PROPRIETARY FUND TYPES Year Ended December 31, 1999 I WIth ComparatIve Totals for the Year Ended December 31, 1998 Totals I 1999 1998 OPERATING REVENUES Charges for ServIces $ 331,687 $ 260,579 I Water AvaIlabIlIty Charges 36,431 0 PenaltIes 17,448 3,450 Total Operatmg Revenues 385,566 264,029 I OPERATING EXPENSES Sa1anes and Benefits 1,642 7,073 I RepaIrs and Mamtenance 18,060 16,439 Engmeer Fees 9,915 2,842 Legal Fees 165 605 I SupplIes 7,319 4,183 ProfessIonal ServIces 103,775 114,422 Insurance 3,944 1,797 I DeprecIatIOn 77,542 76,956 MIscellaneous 498 252 Total Operatmg Expenses 222,860 224,569 I OPERATING INCOME 162,706 39,460 NON-OPERATING REVENUES (EXPENSES) I Water Meter Sales 21,052 0 Interest Income 15,034 11,452 Interest Expense and FIscal Charges (40,371) (42,362) I Water Meter Purchases (7,164) 0 Total Non-operatmg Revenues (Expenses) (11,449) (30,910) NET INCOME 151,257 8,550 I RETAINED EARNINGS - January 1 265,530 256,980 I RESIDUAL EQUITY TRANSFER 168,468 0 RETAINED EARNINGS - December 31 $ 585,255 $ 265,530 I I I The notes to the finanCIal statements are an mtegral part of thIs statement I 7 I 9 I I I I I I I I I I I I I I I I I I I CITY OF ALBERTVILLE, MINNESOTA NOTES TO THE FINANCIAL STATEMENTS Year Ended December 31, 1999 NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES The CIty of AlbertvIlle, Mmnesota, has a mayor-councIl form of government A mayor and four councIl members are elected by the voters of the CIty for two-year and four-year terms, respectively The accountmg polIcIes of the CIty conform to generally accepted accountmg 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" The CIty has elected to apply all applIcable GASB pronouncements as well as FmancIal Accountmg Standards Board (F ASB) pronouncements, Accountmg PnncIples Board (APB) OpmIOns and Accountmg Research Bulletms (ARB), Issued on or before November 30, 1989 unless those pronouncements conflIct WIth or contradIct GASB pronouncements In addItion, 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 polICIes A FmancIal Reportmg Entity In accordance WIth GASB Statement No 14, The Fznanczal Reportzng Entzty, the finanCIal statements present the CIty and ItS component umts The CIty mcludes all funds, account groups, organIzatIOns, mstItutIOns, agencies, departments, and offices that are not legally separate from such Component unItS are legally separate orgamzatIOns for WhICh the elected offiCIals of the CIty are finanCIally accountable and are mcluded wIthm the general purpose finanCIal statements of the CIty because of the sIgmficance of theIr operatIOnal or finanCIal relationshIps WIth the CIty The CIty IS consIdered finanCIally accountable for a component umt If It appomts a votmg maJonty of the organIzatIOn's governmg body and It IS able to Impose ItS wIll on the organIzatIOn by sIgmficantly mfluencmg the programs, proJects, actiVIties, or level of servIces performed or provIded by the organIzatIOn, or there IS a potential for the orgamzatIOn to prOVIde speCIfic finanCIal benefits to, or Impose speCIfic finanCial burden on, the CIty As a result of applymg the component unIt defimtIOn cntena above, certam orgamzatIOns have been defined m accordance WIth GASB Statement No 14 and are presented m tills 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 I I I I I I I I I I I I I I I I I I I CITY OF ALBERTVILLE, MINNESOTA NOTES TO THE FINANCIAL STATEMENTS Year Ended December 31, 1999 NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Contmued) A FmancIa1 Reportmg EntIty (Contmued) · Related OrgamzatIOn - The relatIOnshIp of the CIty WIth entIty IS dIsclosed · Jomt Ventures and Jomtly Governed OrgamzatIOns - The relatIOnshIp of the CIty WIth the entIty IS dIsclosed For each ofthe categones above, the specIfic entItIes are IdentIfied as follows Blended Component Umt None DIscretely Presented Component Umts None Related OrgamzatIOn None Jomt Ventures and Jomtly Governed OrgamzatIOns 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 of the 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 pnnclpal and mterest on bonds, the partICIpants agree to contnbute from theIr general fund an amount suffiCIent to pay for such defiCIency At the tIme of the ongmal agreement, each CIty and town was to contnbute 25% ofthe reqUIred 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 reqUIred to contnbute one-thIrd of any potentIal defiCIencIes of the Jomt Powers Board 10 CITY OF ALBERTVILLE, MINNESOTA NOTES TO THE FINANCIAL STATEMENTS Year Ended December 31, 1999 NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Contmued) A FmancIaI Reportmg EntIty (Contmued) Jomt Ventures and Jomtly Governed OrgarnzatIOns (Contmued) Jomt Powers Board Water Fund (Contmued) A summary ofthe financIal mformatIon ofthe Jomt Powers Board Water Fund for the year ended December 31, 1998 (1999 mformatIon IS not avaIlable) IS Total Assets $ 5,264,387 $ 2,279,244 2,985,143 $ 5,264,387 $ 593,372 553,823 86,266 $ 125,815 Total LIabIlItIes Total EqUity Total LIabIlItIes and EqUity Total Revenues Operatmg Expenses Other Income and Expenses Net Income Fmanclal statements for the Jomt Powers Board Water Fund may be obtamed at AlbertvIlle CIty Hall St MIchael - AlbertVIlle Ice Arena (STMA Arena) In 1996 and 1997, the CIty of AlbertvIlle entered m aJomt 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 Dlstnct # 885 The Jomt powers agreement states the CIty of AlbertvIlle IS to execute a revenue note m the amount of $ 133,333 whIch 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-thIrd responsIble If funds are defiCIent, the CIty must pay one-thIrd of the amount necessary to make up the shortage In addItIon, the CIty must allocate an amount suffiCIent to pay one-thIrd of any projected shortfall m annual revenues avaIlable for the operatIon and mamtenance of the Ice arena 11 I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I CITY OF ALBERTVILLE, MINNESOTA NOTES TO THE FINANCIAL STATEMENTS Year Ended December 31, 1999 NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Contmued) A Fmanclal Reportmg EntItv (Contmued) Jomt Ventures and Jomtly Governed OrgamzatIOns (Contmued) St MIchael - AlbertvIlle Ice Arena (Contmued) Duong 1998, the CIty of AlbertvIlle contnbuted the reqUIred $ 133,333 toward the Ice arena In addition, m 1998 the CIty'S Storm Water Enterpnse Fund prOVIded the Ice arena WIth a short-term loan m the amount of$ 83,333 In 1999, the CIty dId not make any contnbutIOns nor receIve any payments on the loan A summary ofthe financIal mformatIOn of the STMA Arena for the year ended June 30, 1999 IS Total Assets $ 993,260 Total LIabIlIties $ 687,291 Total EqUIty 305,969 Total LIabIlIties and EqUIty $ 993,260 Total Revenues $ 388,999 Operatmg Expenses 83,832 Other Income and Expenses 2,901 Net Income $ 308,068 Fmanclal statements for the STMA Arena may be obtamed at AlbertvIlle CIty Hall B Fund Accountmg The accounts of the CIty are orgamzed on the basIS offunds and account groups, each of willch 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 vanous funds are grouped, m the financIal statements m tills 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 12 13 I I I I I I I I I I I I I I I I I I I CITY OF ALBERTVILLE, MINNESOTA NOTES TO THE FINANCIAL STATEMENTS Year Ended December 31, 1999 NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Contmued) B Fund Accountmg (Contmued) Governmental Funds (Contmued) 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 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) Pro-pnetarv Funds Enterpnse Funds are used to account for operatIons (a) that are financed and operated m a manner sImIlar to pnvate busmess enterpnses--where the mtent of the governmg body IS that the costs (expenses, mcludmg deprecIatIOn) of provIdmg goods or servIces to the general publIc on a contmumg basIs be financed or recovered pnmanly through user charges, or (b) where the governmg body has deCIded that the pen OdIC determmatIOn of revenues earned, expenses mcurred, or net mcome IS appropnate for capItal mamtenance, publIc polIcy, management control, accountabIlIty, or other purposes The CIty mamtams sarntary sewer, water, 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 Long-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 applIed to the fixed assets and long-term lIabIlItIes assocIated WIth a fund are determmed by ItS measurement focus All governmental funds are accounted for on a spendmg or "financial flow" measurement focus ThIS means that only current assets and current lIabIlItIes are generally mcluded on theIr balance sheets TheIr reported fund balance (net current assets) IS conSIdered a measure of avaIlable spendable resources Governmental fund operatmg statements present mcreases (revenues and other financmg sources) and decreases (expendItures and other financmg uses) m net current assets Accordmgly, they are saId to present a summary of sources and uses of avaIlable spendable resources dunng a penod I I I I I I I I I I I I I I I I I I I CITY OF ALBERTVILLE, MINNESOTA NOTES TO THE FINANCIAL STATEMENTS Year Ended December 31, 1999 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--willch 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 illstoncal cost or estimated hIstoncal cost If actual cost IS not aVallable Donated fixed assets are valued at theIr estimated faIr value on the date donated 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 recognIzed as governmental fund type expendItures or fund lIabIlIties They are mstead reported as lIabIlIties m the General Long-Term Debt Account Group The two account groups General FIxed Assets and General Long-Term Debt, are not "funds" They are concerned only wIth the measurement of financIal posItion They are not mvolved WIth measurement of results of operatIOns All propnetary funds are accounted for on a flow of economIC resources measurement focus Tills 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 contnbuted capItal and retamed earnmgs components Propnetary fund type operating 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-lIne method The estimated useful lIves of the fixed assets range from five to fifty years 14 15 I I I I I I I I I I I I I I I I I I I CITY OF ALBERTVILLE, MINNESOTA NOTES TO THE FINANCIAL STATEMENTS Year Ended December 31, 1999 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 tImmg of the measurement made, regardless of the measurement focus applIed All governmental funds are accounted for usmg the modIfied accrual basIS of accountmg, m wmch 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 aVailabIlIty penod IS used for revenue recogmtIOn for all other governmental fund revenues ExpendItures are recorded when the related fund lIabIlIty IS Incurred Pnnclpal and mterest on general long-term debt are recorded as fund lIabIlIties when due or when amounts have been accumulated m the debt servIce fund for payments to be made early m the followmg year Major revenues that are susceptible to accrual mclude property taxes, speCial assessments, mtergovernmental revenues, charges for servIces, and mterest on mvestments Major revenues that are not susceptible to accrual mclude lIcenses 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 recognIzed as revenue when due, net of delmquencIes The CIty reports deferred revenue on the combmed balance sheet Deferred revenues arIse when a potential revenue does not meet both the "measurable" and "avaIlable" cntena for reCOgnItIOn m the current penod Deferred revenues also arIse 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 qualIfymg expendItures In subsequent years, when both revenue recognItion cntena are met, or when the CIty has a legal claIm to the resources, the lIabIlIty for deferred revenue IS removed from the combmed balance sheet and the revenue IS recognIzed 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 reCOgnIzed when due All propnetary funds are accounted for usmg the accrual basIS of accountmg, revenues are recognIzed when they are earned and expenses are recogmzed when they are mcurred I I I I I I I I I I I I I I I I I I I CITY OF ALBERTVILLE, MINNESOTA NOTES TO THE FINANCIAL STATEMENTS Year Ended December 31, 1999 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 reVISIOns made dunng the year The CIty follows these procedures m establIshmg the budgetary data reflected m the finanCIal statements I Budget requests are submItted by all department heads to the CIty Admmlstrator The CIty Admlmstrator complIes the budget requests mto an overall prelImmary CIty budget 2 The CIty Admmlstrator 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 1999 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 ofproJect controls 4 The budget for the General Fund IS adopted on a basIs conSIstent wIth generally accepted accountmg pnnclples (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, 1999, 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, 1999 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 16 CITY OF ALBERTVILLE, MINNESOTA NOTES TO THE FINANCIAL STATEMENTS Year Ended December 31, 1999 NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Contmued) G Cash and Investments (Includmg Cash EqUIvalents) (See Note 3) (Contmued) For purposes of the Statement of Cash Flows ofpropnetary 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 matuntles of three months or less H Taxes ReceIvable DelInquent 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 pnncIpal portIOn of those assessments to property owners for Improvements made by the CIty and are to be paid m 2000 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 delInquent taxes, delInquent and deferred assessments receIvable, and loans receIvable ThIS revenue IS deferred untllIt IS measurable and avaIlable as net current assets 17 I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I CITY OF ALBERTVILLE, MINNESOTA NOTES TO THE FINANCIAL STATEMENTS Year Ended December 31, 1999 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 hohday pay Employees may not carry over vacatIOn tIme from one vacatIon year to another vacatIOn year as estabhshed 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 maxImum of 45 days or 360 hours Hours accumulated m excess of the maxImum IS apphed to the sIck leave mcentIve program An employee earns one-fourth day paid vacatIOn or one-fourth days' pay m heu of Said vacatIOn at the employee's optIon ThIS optIOn IS only actIve and avaIlable when the begInnmg sIck leave balance for each month IS 45 days The cash m heu optIon IS paId m December of each year VacatIon pay and sIck pay are conSIdered expendItures m the year due m the governmental fund types, whIle m the propnetary fund types, vacatIOn and sIck pay are charged to expense when earned M Fund EqUIty Fund eqUIty IS dIvIded mto sectIOns as follows - Contnbuted capItal represents fixed 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 wmch IS aVailable for budgetmg and expendmg m future penods 18 19 I I I I I I I I I I I I I I I I I I I CITY OF ALBERTVILLE, MINNESOTA NOTES TO THE FINANCIAL STATEMENTS Year Ended December 31, 1999 NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Contmued) N Revenues. Expenditures and Expenses 1 Revenues Property taxes and speCial assessment pnncipal and mterest are recogmzed as revenue when measurable and aVailable Intergovernmental revenues are reported under the legal and contractual reqmrements of the mdividual programs Licenses and permits, charges for services, fines and forfeitures, and miscellaneous revenues (except mvestment earmngs) are recorded as revenues when measurable and available Investment earnmgs 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 collectmg agency for the levy and remits the collectiOns to the City three hmes a year Taxes not collected as of December 31 each year are shown as delmquent taxes receivable December 28 is the last day the City can certify a tax levy to the County Auditor for collectiOn the followmg year Such taxes become a lien on the followmg January 1 The County Auditor prepares the tax 11st for all taxable property m the City, applymg the applicable tax rate to the tax capacity of mdividual properties, to arnve at the actual tax for each property The County Auditor also collects all speCial assessments, except for certam prepayments paid directly to the City The County Auditor submits a 11st of taxes to be collected on each parcel of property to the County Treasurer m January of each year The County Treasurer collects all taxes and is reqmred to mail copies of all personal property tax statements by February 15, and copies of all real estate tax statements by Apn115, of each year Property owners are reqmred to pay one-half of their real estate taxes due by May 15 and the balance by October 15 I I I I I I I I I I I I I I I I I I I CITY OF ALBERTVILLE, MINNESOTA NOTES TO THE FINANCIAL STATEMENTS Year Ended December 31, 1999 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 paId on time, a penalty of3% IS assessed on homesteaded property and 7% on non-homesteaded property An addItional 1 % penalty IS added each month the taxes remam unpaId, until October 15 If the taxes due May 15 are not prod 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 WIthm 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 wIthm 60 days after settlement, proVIded that after 45 days mterest accrues 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 recognIzed 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 Nonrecumng or nonroutme permanent transfers of eqUity are reported as reSIdual eqUity transfers All other mterfund transfers are reported as operatmg transfers 20 21 I I I I I I I I I I I I I I I I I I I CITY OF ALBERTVILLE, MINNESOTA NOTES TO THE FINANCIAL STATEMENTS Year Ended December 31, 1999 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 facIlItate financIal analysIs Data m these columns do not present financIal posItIOn, results of operatIOns, or cash flows m conformIty wIth generally accepted accountmg pnncIples Interfund elImmatIOns 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 theIr 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, 1999 SpecIal Revenue Fund - CMIF Debt ServIce Funds - 1988 Refundmg Bonds 1996A G 0 TIF Bonds CapItal Projects Funds- TIF #6 - Fraser Steel TIF #7 - Semor Housmg TIF #9 - Barthel Bus Garage TIF #10 - Mold-Tech TIF # 11 - Land of Lakes TIle Barthel Industnal Dnve & 52nd St North Frontage Road Summerfield AddItion NE Sewer and Water ExtensIOn ParksIde 3rd AddItion Parkslde 4th AddItion Cottages of AlbertvIlle TIF # 7 $ 2,663 158,430 15,371 25 181 95 4,640 16,857 10,248 3,905 21,134 8,639 17,225 28,953 27,570 I I I I I I I I I I I I I I I I I I I CITY OF ALBERTVILLE, MINNESOTA NOTES TO THE FINANCIAL STATEMENTS Year Ended December 31, 1999 NOTE 2 - STEWARDSHIP. COMPLIANCE AND ACCOUNTABILITY (Contmued) A Fund Balance DeficIts (Contmued) CapItal Projects Funds - (Contmued) Cedar Creek Industnal Park Cedar Creek North Center Oaks 1st AddItIOn ParksIde CommercIal Park Barthel Bus Garage TIF # 9 Karston Cove Psyk's 7th AddItIon AlbertvIlle Crossmgs 57th Street Improvement AlbertvIlle VIllas Mooney AddItIOn $ 2,618 72,039 107,789 2,547 5,634 17,340 16,861 935 50,810 13,645 1,788 These deficIts wIll be elImmated by future leVIes, collectIOns of specIal assessments, operatmg transfers, and developer reImbursements B ExpendItures m Excess of AppropnatIOns ExpendItures exceeded appropnatIons m the followmg funds for the year ended December 31, 1999 ExpendItures AppropnatIOns General Fund SpecIal Revenue Funds Park Fund Revolvmg Loan Fund CMIF Fund $ 893,901 160,632 75,000 111 $ 825,059 o 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 Mmnesota 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 restnctIons are summanzed below 22 I I I I I I I I I I I I I I I I I I I CITY OF ALBERTVILLE, MINNESOTA NOTES TO THE FINANCIAL STATEMENTS Year Ended December 31, 1999 NOTE 3 - DETAILED NOTES ON ALL FUNDS AND ACCOUNT GROUPS (Contmued) A Assets (Contmued) 1 Cash and Investments (Includmg Cash EqUIvalents) (Contmued) a DeposIts - Mmnesota Statutes reqUIre that all deposIts wIth financIal mstItutIOns must be collaterahzed m an amount equal to 110% of deposIts m excess of FDIC msurance Category 1 - DeposIts collaterahzed by Federal DeposItory Insurance (FDIC) and those deposIts collaterahzed wIth secuntIes held by the CIty or by ItS agent m the CIty'S name Category 2 - Collaterahzed wIth secuntIes held by the pledgmg financmg mstItutIOn's trust department or agent m the CIty'S name Category 3 - Uncollaterahzed, mcludmg amounts whIch are collaterahzed wIth secuntIes held by the pledgmg financIal mstItutIOn, or by ItS trust department or agent, but not m the CIty'S name, or deposIts WhICh are collaterahzed but collateral not perfected Category Bank Carrymg 1 2 3 Balance Amount CertIficates of DeposIt $ 579,022 $ 0 $ 94,321 $ 673,343 $ 673,343 Bank Accounts 1,364,818 0 114,980 1,479,798 1,298,612 Total DeposIts $ 1,943,840 $ 0 $ 209,301 $ 2,153,141 $ 1,971,955 b Investments - Mmnesota Statutes authonze the CIty to mvest m obhgatIOns of the US Treasury, agencIes and mstrumentahtIes, shares ofmvestment companIes whose only mvestments are m the forementIOned secuntIes, obhgatIOns of the State of Mmnesota or ItS mumcIpahtIes, bankers' acceptances, future contracts, repurchase and reverse repurchase agreements, and commercIal paper of the hIghest quahty wIth a matunty of no longer than 270 days Investments held by the CIty at year end claSSIfied as to credIt nsk are as follows Category 1 - Insured or regIstered, wIth secuntIes held by the CIty'S agent m the CIty'S name 23 I I I I I I I I I I I I I I I I I I I CITY OF ALBERTVILLE, MINNESOTA NOTES TO THE FINANCIAL STATEMENTS Year Ended December 31, 1999 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 seCUrItIes 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 Category 1 2 U S Government SeCUrItIes $ 361,186 $ 0 Mortgage Pools 751,820 0 NegotIable CD's 194,000 0 Total $ 1,307,006 $ 0 Carrymg Amount FaIr 3 Value $ 0 $ 361,186 o 751,820 o 194,000 $ 0 1,307,006 779,076 77,904 1,971,955 50 Cash m Trust Restncted Cash m Trust Total DeposIts (Note 3 A 1 a) Petty Cash Total Cash and Investments (Includmg Cash EqUIvalents) $ 4,135,991 ThIS amount IS classIfied on the combmed balance sheet as follows Cash and Investments (Includmg Cash EqUIvalents) Cash m Trust Restncted Cash m Trust Cash Overdraft Total $ 4,644,972 779,076 77,904 (1,365,961) $ 4,135,991 For the year ended December 31, 1999, mvestment revenue was $ 132,831 24 The followmg IS a summary of due from other governmental umts at December 31, 1999 Ice Arena Wnght Jomt Fund County Powers Total General $ 823 $ 0 $ 823 Debt ServIce 170 0 170 Enterpnse 45,831 83,333 129,164 Total $ 46,824 $ 83,333 $ 130,157 3 Notes ReceIvable The followmg IS a summary of changes m general fixed assets (unaudIted) Balance Balance 1-1-99 Purchases DIsposals 12-31-99 Land $ 35,566 $ 0 $ 0 $ 35,566 BUIldmgs 113,409 0 0 113,409 Improvements Other than BUIldmgs 78,169 0 0 78,169 Machmery and EqUIpment 573,800 161,949 0 735,749 Total $ 800,944 $ 161,949 $ 0 $ 962,893 I I I I I I I I I I I I I I I I I I I CITY OF ALBERTVILLE, MINNESOTA NOTES TO THE FINANCIAL STATEMENTS Year Ended December 31, 1999 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, 1999 IS as follows Samtary Sewer Water Fund Fund Totals Land $ 190,269 $ 0 $ 190,269 Sewer System 3,741,108 0 3,741,108 Water System 0 296,263 296,263 EqUIpment 98,194 13,532 111,726 Construction m Progress 234,130 0 234,130 Total FIxed Assets 4,263,701 309,795 4,573,496 Less Accumulated DepreCiation (835,167) (322) (835,489) Net FIxed Assets $ 3,428,534 $ 309,473 $ 3,738,007 B LiabIlItIeS 1 Defined Benefit PenSIOn Plans - StatewIde a Plan DescnptIOn All full-time and certam part-time employees ofthe CIty of AlbertvIlle, are covered by defined benefit plans admIffistered by the PublIc Employees Retirement ASSOCIatIOn ofMmnesota (PERA) PERA admIffisters 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 PERF members belong to eIther the Coordmated Plan or the BasIC Plan Coordmated Plan members are covered by SOCIal Secunty and BaSIC Plan members are not All new members must partICIpate m the Coordmated Plan 26 27 I I I I I I I I I I I I I I I I I I I CITY OF ALBERTVILLE, MINNESOTA NOTES TO THE FINANCIAL STATEMENTS Year Ended December 31, 1999 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) 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 termmatIon 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 I, the annUIty accrual rate for a BasIC Plan member IS 2 2 percent of average salary for each of the first 10 years of servIce and 2 7 percent for each remammg year The annUIty accrual rate for a Coordmated Plan member IS 1 2 percent of average salary for each of the first 10 years and 1 7 percent for each remammg year Under Method 2, the annUIty accrual rate IS 2 7 percent of average salary for BaSIC Plan members and 1 7 percent for Coordmated Plan members for each year of servIce For PERF members whose annUIty IS calculated usmg Method 1, a full annUIty IS aVailable when age plus years of servIce equal 90 A reduced retirement annUIty IS also aVailable to 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 vanous types of Jomt and survIvor annUIty optIOns avaIlable WhICh wIll reduce the monthly normal annUIty amount, because the annUIty IS payable over Jomt lIves Members may also leave theIr contrIbutIOns m the fund upon termmatIOn of publIc servIce m order to qualIfy for a deferred annUIty at retirement age Refunds of contrIbutions are avaIlable at any time to members who leave publIc servIce, but before retirement benefits begm I I I I I I I I I I I I I I I I I I I CITY OF ALBERTVILLE, MINNESOTA NOTES TO THE FINANCIAL STATEMENTS Year Ended December 31, 1999 NOTE 3 - DETAILED NOTES ON ALL FUNDS AND ACCOUNT GROUPS (Contmued) B LIabIlIties (Contmued) 1 Defined Benefit PenSIOn Plans - StatewIde (Contmued) a Plan DescnptIon (Contmued) The benefit provIsIons stated m the prevIOUS paragraphs OfthIS sectIOn are current prOVIsIons 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 publIc servIce PERA Issues a publIcly 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 callIng (651) 296-7460 or 1-800-652-9026 b Fundmg PolIcy Mmnesota Statutes Chapter 353 sets the rates for employer and employee contnbutIOns These statutes are establIshed 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, of theIr 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 PublIc Employees Retirement Fund for the years endmg December 31, 1999, 1998, and 1997 were $ 6,649, $ 4,905, and $ 4,802, respectIvely The CIty does not have polIce or fire employees The CIty'S contnbutIOns were equal to the contractually reqUIred contnbutIOns for each year as set by state statute 2 Deferred Revenue Special Debt CapItal General Revenue ServIce Projects Total Taxes ReceIvable - DelInquent $ 18,655 $ 0 $ 3,274 $ 0 $ 21,929 Special Assessments ReceIvable - Deferred 0 0 1,795,596 14,000 1,809,596 Delmquent 0 0 30,878 0 30,878 Loans ReceIvable 0 137,676 0 0 137,676 Total $ 18,655 $ 137,676 $ 1,829,748 $ 14,000 $ 2,000.079 28 29 I I I I I I I I I I I I I I I I I I I CITY OF ALBERTVILLE, MINNESOTA NOTES TO THE FINANCIAL STATEMENTS Year Ended December 31, 1999 NOTE 3 - DETAILED NOTES ON ALL FUNDS AND ACCOUNT GROUPS (Contmued) B LiabIlItIes (Contmued) 3 Long- Term Debt The followmg IS a summary of long-term debt transactIOns for the year ended December 31, 1999 General ObhgatIOn General Special Tax ObhgatIOn Revenue Assessment Increment Total Balance - January 1 $ 120,000 $ 1,232,672 $ 625,000 $ 350,000 $ 2,327,672 AdditIOns 0 860,000 1,760,000 0 2,620,000 Retirements (20,000) (59,559) (150,000) (95,000) (324,559) Balance - December 31 $ 100,000 $ 2,033,113 $ 2,235,000 $ 255,000 $ 4,623,113 Outstandmg December 31, 1999 General OblIgatIOn Bonds $ 180,000 General OblIgatIOn 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 $ 100,000 Revenue Debt $ 1,454,514 General OblIgatIOn Revenue Notes - PFA, due to Mmnesota PublIc FacIlItIes Authonty m semI-annual mstallments of$ 19,707 to $ 49,965 through August 20, 2014, mterest at 332 percent $ 1,173,113 $ 860,000 PublIc Facllby Lease Revenue Bonds, Senes 1999, due m annual mstallments of$ 10,000 to $ 70,000 through February 1,2019, mterest at 500 to 5 60 percent Total Revenue Debt 860,000 2,033,113 $ I I I I I I I I I I I I I I I I I I I CITY OF ALBERTVILLE, MINNESOTA NOTES TO THE FINANCIAL STATEMENTS Year Ended December 31, 1999 NOTE 3 - DETAILED NOTES ON ALL FUNDS AND ACCOUNT GROUPS (Contmued) B LIabIlItIes (Contmued) 3 Long-Term Debt (Contmued) General OblIgatIOn SpecIal Assessment Bonds $ 505,000 Advance Refundmg and Improvement Bond of 1988, due m annual mstallments of$ 15,000 to $ 65,000 through February 1,2000, mterest at 635 to 725 percent $ 215,000 Refundmg Bonds of 1989, due m annual mstallments of$ 5,000 to $ 25,000 through September 1, 2003, mterest at 7 00 to 7 75 percent $ 115,000 General OblIgatIOn Refundmg Improvement Bonds of 1992, due m annual mstallments of$ 10,000 to $ 15,000 through February 1,2001, mterest at 550 percent $ 350,000 General OblIgatIOn Improvement Bonds, Senes 1992A, due m annual mstallments of$ 15,000 to $ 35,000 through December 30,2004, mterest at 570 percent $ 675,000 General OblIgatIOn Improvement Refundmg Bonds, Senes 1993A, due m annual mstallments of $ 20,000 to $ 95,000 through February 1, 2006, mterest at 3 40 to 5 75 percent $ 1,760,000 General OblIgatIOn Improvement Bonds, Senes 1999A, due m annual mstallments of$ 40,000 to $ 385,000 through February 1, 2015, mterest at 4 10 to 5 20 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, 1999 $ 15,000 60,000 30,000 155,000 215,000 $ 1,760,000 2,235,000 $ 255,000 30 I CITY OF ALBERTVILLE, MINNESOTA I NOTES TO THE FINANCIAL STATEMENTS I Year Ended December 31, 1999 NOTE 3 - DETAILED NOTES ON ALL FUNDS AND ACCOUNT GROUPS (Contmued) I B LIabIlIties (Contmued) 3 Long-Term Debt (Contmued) I The annual reqUIrements to amortIze all bonded debt outstandmg as of December 31, I 1999, mcludmg mterest payments of$ 1,453,897 are I I I I I Fund eqmty balances are claSSIfied as follows to reflect the lImItatIOns and restrIctions of the respective funds I 1 Fund Balance - I I I I I I 31 I General ObhgatIon Year Endmg General SpeCIal Tax December 31 ObhgatIon Revenue Assessment Increment Total 2000 $ 24,370 $ 146,606 $ 242,638 $ 42,420 $ 456,034 2001 23,450 156,355 567,840 40,920 788,565 2002 22,490 175,356 517,175 39,420 754,441 2003 21,500 173,818 487,035 37,920 720,273 2004 20,500 177,112 183,230 36,420 417,262 Thereafter 0 2,105,508 718,182 116,745 2,940,435 Total $ 112,310 $ 2,934,755 $ 2,716,100 $ 313,845 $ 6,077,010 C Fund EQmty Fund balance IS compnsed of the followmg components SpeCial Debt CapItal General Revenue ServIce Projects Total Reserved - Reserved for Debt ServIce $ 0 $ 0 $ 436,948 $ 0 $ 436,948 Unreserved - DeSIgnated for Operatmg CapItal 500,000 0 0 0 500,000 DeSIgnated for Debt ServIce 0 0 108,071 0 108,071 DeSIgnated for CapItal Outlay 0 358,717 0 410,800 769,517 UndesIgnated (110,638) 2,215,293 (173,801) (431,478) 1,499,376 Total Fund Balance $ 389,362 $ 2,574,010 $ 371,218 $ (20,678) $ 3,313,912 I I I I I I I I I I I I I I I I I I I CITY OF ALBERTVILLE, MINNESOTA NOTES TO THE FINANCIAL STATEMENTS Year Ended December 31, 1999 NOTE 3 - DETAILED NOTES ON ALL FUNDS AND ACCOUNT GROUPS (Contmued) C Fund EqUity (Contmued) 2 Retamed Earnmgs - Reserved retamed earnmgs at December 31, 1999, IS as follows Enterpnse Reserved for Operatmg CapItal $ 97 ,894 3 Contnbuted CapItal - Contnbuted capItal m the enterpnse funds represents fixed assets whIch were purchased by other funds and transferred to the enterpnse funds Changes m contnbuted capItal for the year are as follows Contnbuted CapItal- January 1, 1999 Add Assets Contnbuted Dunng 1999 Contnbuted CapItal- December 31, 1999 $ 1,868,608 484,911 $ 2,353,519 NOTE 4 - SEGMENT INFORMATION The CIty mamtams Water, SanItary Sewer, and Storm Water Enterpnse Funds Segment mformatIon for the year ended December 31, 1999 IS as follows SanItary Water Storm Sewer Fund Water Total Operatmg Revenues $ 255,646 $ 75,181 $ 54,739 $ 385,566 DepreCiatIOn 77,220 322 0 77,542 Operatmg Income 60,149 63,569 38,988 162,706 Net Income (Loss) 17,596 88,457 45,204 151,257 Net W orkmg CapItal (184,661) 243,715 253,337 312,391 Total Assets 3,521,403 564,278 253,337 4,339,018 Debt Outstandmg 1,173,113 0 0 1,173,113 Total EqUity 2,132,249 553,188 253,337 2,938,774 32 CITY OF ALBERTVILLE, MINNESOTA NOTES TO THE FINANCIAL STATEMENTS Year Ended December 31, 1999 NOTE 5 - TAX INCREMENT FINANCING The CIty of AlbertvIlle IS the admmIstenng authonty for the followmg tax mcrement financmg dIstncts Name ofDIstnct Tax Increment Fmancmg DIstnct # 5 Type ofDIstnct Authonzmg Law Year Established County DIstnct Number DuratIOn of DIStnCt EconomIc Development Mmnesota T I F Act, SectIOns 469 174 to 469 179 1989 47 10 years or no more than eIght years from the receIpt ofthe first mcrement Ongmal Net Tax CapacIty Current Net Tax CapacIty Captured Net Tax CapacIty - Retamed by CIty $ 100 47,978 $ 47,878 Type of Bonds Issued Total Bonds Issued Amounts Redeemed General ObligatIOn Tax Increment $ 670,000 415,000 $ 255,000 Outstandmg Bonds at December 31, 1999 Name ofDIstnct Tax Increment Fmancmg DIStnCt # 6 Type of DIstnct Authonzmg Law Year Established County DIstnctNumber DuratIOn ofDIstnct Ongmal Tax CapacIty Current Tax CapacIty Captured Tax CapacIty - Retamed by CIty Type of Notes Issued EconomIC Development Mmnesota T I F Act, Chapter 469 174 1989 48 10 years or no more than eIght years from the receIpt of the first mcrement $ 115 40,264 $ 40,149 "Pay as You Go" - The CIty pays the developer for tax mcrements receIved m the current year 33 I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I CITY OF ALBERTVILLE, MINNESOTA NOTES TO THE FINANCIAL STATEMENTS Year Ended December 31, 1999 NOTE 5 - TAX INCREMENT FINANCING (Contmued) Name ofDIstnct Tax Increment Fmancmg DIstnct # 7 Type ofDIstnct Authonzmg Law Year EstablIshed County DIstnct Number DuratIOn of DIstnCt Ongmal Tax CapacIty Current Tax CapacIty Captured Tax CapacIty - Retamed by CIty Type of Notes Issued Housmg DIstnct Mmnesota T I F Act, Chapter 469 174, Subd 11, and 469 1761 1997 107 25 years after the date of receIpt ofthe first mcrement $ $ "Pay as You Go" - The CIty pays the developer for tax mcrements receIved m the current year Name ofDIstnct Tax Increment Fmancmg DIstnct # 8 Type of DIstnct Authonzmg Law Year EstablIshed County DIstnct Number DuratIOn ofDIstnct Ongmal Tax CapaCIty Current Tax CapaCIty Captured Tax CapaCIty - Retamed by CIty Type of Notes Issued EconomIC Development Mmnesota T I F Act, Chapter 469174, Subd 12 1997 108 EarlIer of 9 years after the date of receIpt of the first mcrement, or 11 years after the date of approval of the TIP plan $ $ "Pay as You Go" - The CIty pays the developer for tax mcrements receIved m the current year 915 6,313 5,398 o 6,839 6,839 34 CITY OF ALBERTVILLE, MINNESOTA NOTES TO THE FINANCIAL STATEMENTS Year Ended December 31, 1999 NOTE 5 - TAX INCREMENT FINANCING (Contmued) Name ofDIstnct Tax Increment Fmancmg DIstnct # 9 Type ofDIstnct Authonzmg Law Year Estabhshed DuratIOn of DIstnct EconomIC Development Mmnesota T I F Act, Chapter 469 174, Subd 12 1997 Earher of 9 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 $ $ Type of Notes Issued "Pay as You Go" - The CIty pays the developer for tax mcrements receIved m the current year Name ofDIstnCt Tax Increment Fmancmg DIstnct # 10 Type of DIstnct Authonzmg Law Year Estabhshed DuratIOn ofDIstnct EconomIC Development Mmnesota T I F Act, Chapter 469 174, Subd 12 1998 Earher of9 years after the date of receIpt of the first mcrement, or 11 years after the date of approval of the TIP Plan Ongmal Tax CapacIty Current Tax CapacIty Captured Tax CapacIty - Retamed by CIty $ $ Type of Notes Issued "Pay as You Go" - The CIty pays the developer for tax mcrements receIved m the current year o o I I I I I I I I I I I I I I I I I I I o o o o 35 I I I I I I I I I I I I I I I I I I I CITY OF ALBERTVILLE, MINNESOTA NOTES TO THE FINANCIAL STATEMENTS Year Ended December 31, 1999 NOTE 5 - TAX INCREMENT FINANCING (Contmued) Name ofDIstnct Tax Increment Fmancmg DIstnct # 11 Type of DIstnct Authonzmg Law Year EstablIshed DuratIOn ofDIStnCt EconomIc Development Mmnesota T I F Act, Chapter 469174, Subd 12 1999 EarlIer of9 years after the date of receIpt of the first mcrement, or 11 years after the date of approval ofthe TIP Plan Ongmal Tax CapacIty Current Tax CapacIty Captured Tax CapacIty - Retamed by CIty $ o o $ o 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 of loss, the CIty purchases commerCIal msurance through the League of Mmnesota CIties Insurance Trust, a publIc entIty nsk pool ThIS pool currently operates common nsk management and msurance programs for mumcIpal entities The CIty pays an annual premIUm to the League for ItS msurance coverage The League of Mmnesota CIties Insurance Trust IS self-sustarmng through commerCIal companies for excess claIms The CIty IS covered through the pool for any clarms mcurred but unreported, however, retams nsk for the deductible portIOn of ItS msurance polICIes The amounts ofthese deductIbles are consIdered Immatenal to the finanCIal statements Dunng the year ended December 31, 1999, there were no sIgmficant reductions m msurance coverage from the pnor year Settled clarms have not exceeded the CIty'S commerCIal coverage m any of the past three years The CIty'S workers compensatIOn msurance polIcy IS retrospectively rated WIth thIS type of polIcy, final premIUms are determmed after loss expenence, workers compensatIOn rates and salanes for the year are known The final premIUm adJustlnent was recorded m the year the adjustment was made 36 37 I I I I I I I I I I I I I I I I I I I CITY OF ALBERTVILLE, MINNESOTA NOTES TO THE FINANCIAL STATEMENTS Year Ended December 31, 1999 NOTE 7 - CONDUIT DEBT OBLIGATIONS CondUIt debt oblIgatIOns are certam lImIted-obligatIOn revenue bonds or sImIlar debt mstruments Issued for the express purpose of provIdmg capItal financmg for a specIfic trurd party The CIty has Issued Revenue Bonds to provIde fundmg to pnvate-sector entities for projects deemed to be m the publIc mterest Although these bonds bear the name of the CIty, the CIty has no oblIgations for such debt beyond the resources prOVIded by related leases or loans Accordmgly, the bonds are not reported as lIabIlIties m the finanCial statements of the CIty As of December 31, 1999, the followmg Issues were outstandmg Name Date of Issue Ongmal Amount & Outstandmg Balance December 31, 1999 Cottages of AlbertvIlle - September 23, 1999 MUltI FamIly Housmg Revenue Bonds, Senes 1999A $ Taxable Multi FamIly Housmg Revenue Bonds, Senes 1999B $ Subordmated Multi FamIly Housmg Revenue Bonds, Senes 1999C $ 3,230,000 85,000 425,000 NOTE 8 - PRIOR PERIOD ADJUSTMENT A pnor penod adjustment was made to decrease begmnmg fund balance m the general fund to record a lIabIlIty for bUIldmg mspectIOn contracted servIces rendered m years pnor to 1999 General Fund BUIldmg InspectIOn Contracted ServIces $ (200,334) CITY OF ALBERTVILLE, MINNESOTA THE GENERAL FUND I I I I I I I I I I I I I I I I I I I 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 flowmg mto It such revenues as general property taxes, lIcense and permIts, fines and penalties, rents, charges for current servIces, state-shared taxes, and mterest earnmgs 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 I I I I I I I I I I I I I I I I I I I CITY OF ALBERTVILLE, MINNESOTA GENERAL FUND COMPARATIVE BALANCE SHEET December 31, 1999 and 1998 ASSETS Cash and Investments Taxes ReceIvable - De1mquent 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 Totals 1999 1998 $ 830,162 $ 477,388 18,655 9,691 7,710 35,903 823 2,616 $ 857,350 $ 525,598 $ 443,062 6,271 18,655 467,988 $ 129,849 4,664 9,691 144,204 500,000 (110,638) 389,362 $ 857,350 445,500 (64,106) 381,394 $ 525,598 38 CITY OF ALBERTVILLE, MINNESOTA I GENERAL FUND I STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCE - BUDGET AND ACTUAL Year Ended December 31, 1999 I WIth Comparative Totals for the Year Ended December 31, 1998 Over I (Under) 1998 Budget Actual Budget Actual REVENUES I Taxes - General Property Tax $ 558,853 $ 576,975 $ 18,122 $ 497,188 Excess Tax Increments 0 7,949 7,949 6,122 I Total Taxes 558,853 584,924 26,071 503,310 Licenses and PermIts - I LIquor and Beer LIcenses 10,900 11,629 729 8,460 BUlldlllg PermIts 35,000 92,218 57,218 245,796 Busllless PermIts 5,350 14,887 9,537 6,662 SIgn PermIts 4,200 2,925 (1,275) 3,075 I Other LIcenses 100 180 80 200 Total LIcenses and PermIts 55,550 121,839 66,289 264,193 Intergovernmental - I Local Government AId 118,533 118,533 0 98,879 HACA 138,150 138,150 0 138,167 Local Performance AId 3,008 3,008 0 3,136 I FIre AId 10,280 13,446 3,166 12,257 Pohce AId 7,785 6,810 (975) 4,197 Other State AIds 4,800 7,355 2,555 5,961 I Total Intergovernmental Revenue 282,556 287,302 4,746 262,597 Charges for ServIces - FIre ProtectlOn Fees 38,000 24,714 (13,286) 28,935 I SpecIal Assessment Searches 1,000 1,680 680 1,390 Park Rental Fees 2,000 2,375 375 1,925 Other Charges for ServIces 2,000 17,730 15,730 19,810 I Total Charges for ServIces 43,000 46,499 3,499 52,060 Fllles, ForfeItures and Penalties 100 152 52 304 MIscellaneous Revenue - I Investment Income 25,000 22,545 (2,455) 21,559 Lease Payments 950 950 0 950 Contnbutions and DonatlOns 0 12,532 12,532 1,208 I Other Revenues 0 24,959 24,959 7,460 Total MIscellaneous 25,950 60,986 35,036 31,177 TOTAL REVENUES 966,009 1,101,702 135,693 1,113,641 I I I 39 I 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, 1999 WIth ComparatIve Totals for the Year Ended December 31, 1998 (Contmued) I Over I (Under) 1998 Budget Actual Budget Actual EXPENDITURES General Government I Mayor and CounCIl - Salanes and Benefits $ 12,472 $ 12,254 $ (218) $ 12,495 Other Insurance 5,355 4,361 (994) 2,297 I ProfeSSIOnal ServIces 5,000 0 (5,000) 4,818 Pnntmg and PubhcatIons 5,500 9,633 4,133 4,571 Travel 300 0 (300) 0 Supphes 400 187 (213) 403 I Dues and SubscnptIOns 3,000 2,646 (354) 2,203 MIscellaneous 0 1,071 1,071 3,932 Total Mayor and CouncIl 32,027 30,152 (1,875) 30,719 I CIty Clerk-Treasurer and City Adnumstrator - Salanes and Benefits 88,389 85,315 (3,074) 95,326 AccountIng and AudItmg 9,500 8,336 (1,164) 10,184 I Contracted ServIces 1,000 727 (273) 637 RepaIrs and Mamtenance 500 232 (268) 93 EqUIpment Rental 1,000 1,423 423 1,089 Other Insurance 3,650 3,557 (93) 1,797 I Travel 1,250 173 (1,077) 690 Supphes 5,500 6,550 1,050 5,182 Dues and SubscnptIOns 150 1,355 1,205 30 I CapItal Outlay 4,700 0 (4,700) 10,938 Total Clerk-Treasurer and AdmImstrator 115,639 107,668 (7,971) 125,966 I ElectIOns - Salanes and Benefits 0 0 0 3,873 I Assessmg - Contracted ServIces 8,500 9,058 558 7,891 Legal- I Purchased ServIces 15,000 13,962 (1,038) 26,578 Engmeer - I Purchased ServIces 20,000 50,216 30,216 45,003 Planmng and Zomng - Salanes and Benefits 2,393 1,284 (1,109) 1,055 I Contracted ServIces 6,000 21,870 15,870 27,647 Travel 500 0 (500) 0 Supphes 700 170 (530) 0 Total Planmng and Zomng 9,593 23,324 13,731 28,702 I I 40 CITY OF ALBERTVILLE, MINNESOTA I GENERAL FUND I STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCE- BUDGET AND ACTUAL Year Ended December 31, 1999 I WIth Comparative Totals for the Year Ended December 31, 1998 (Contmued) Over I (Under) 1998 Budget Actual Budget Actual I EXPENDITURES (Contmued) General Government (Contmued) General Government BUlldmgs - I Refuse DIsposal $ 600 $ 716 $ 116 $ 568 RepaIrs and Mamtenance 4,500 3,562 (938) 22,502 Insurance 3,780 3,557 (223) 3,328 Telephone 2,500 3,092 592 2,931 I Supphes 1,200 775 (425) 866 UtIhtIes 4,000 3,479 (521) 3,284 CapItal Outlay 3,500 164 (3,336) 1,066 I MIscellaneous 500 170 (330) 126 Total General Government BUlldmgs 20,580 15,515 (5,065) 34,671 Total General Government 221,339 249,895 28,556 303,403 I Pubhc Safety I Pohce Protection - Contracted ServIces 107,310 107,310 0 103,806 Flfe Protection - I Salanes and Benefits 13,950 13,552 (398) 9,274 PenslOn Fund ContnbutlOn 15,266 15,939 673 19,118 Trammg 17,350 11,694 (5,656) 7,365 PhysIcals 600 360 (240) 2,453 I AudIt - FIre Rehef ASSOClatlOn 1,260 1,450 190 1,250 RepaIrs and Mamtenance 1,500 6,523 5,023 5,202 Travel 1,500 1,518 18 435 I Insurance 0 269 269 100 Telephone 600 651 51 578 Supphes 3,000 2,598 (402) 4,323 UtIhtIes 3,100 3,034 (66) 2,326 I Dues and SubscnptlOns 200 75 (125) 95 CapItal Outlay 67,600 175,686 108,086 102,754 MIscellaneous 0 587 587 0 I Total FIre ProtectlOn 125,926 233,936 108,010 155,273 BUlldmg Inspection - Contracted ServIces 0 0 0 139,779 I Ammal Control - Contracted ServIces 3,000 2,676 (324) 2,018 I Total Pubhc Safety 236,236 343,922 107,686 400,876 I 41 I 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, 1999 WIth Comparative Totals for the Year Ended December 31, 1998 (ContInued) I Over I (Under) 1998 Budget Actual Budget Actual EXPENDITURES (ContInued) Pubhc Works I Streets and HIghways - SalarIes and Benefits $ 49,077 $ 46,603 $ (2,474) $ 41,379 RepaIrs and MaIntenance 26,000 24,403 (1,597) 15,146 EqUIpment Rental 0 975 975 0 I Sand and Gravel 700 587 (113) 171 Street SweepIng 3,500 2,825 (675) 2,679 Seal CoatIng 8,000 0 (8,000) 0 I Telephone 750 676 (74) 758 Travel 100 0 (100) 16 Supphes 3,550 3,916 366 2,693 UtIlIties 4,675 3,581 (1,094) 2,743 I Dues and SubSCrIptions 250 230 (20) 215 CapItal Outlay 98,000 64,543 (33,457) 154,725 Other 0 58 58 0 I Total Streets and HIghways 194,602 148,397 (46,205) 220,525 Ice and Snow Removal - Contracted ServIces 9,500 5,796 (3,704) 2,636 I Street LightIng - ElectrICIty 30,000 34,219 4,219 29,115 I Total Pubhc Works 234,102 188,412 (45,690) 252,276 SanItation I RecyclIng - Contracted ServIces 17,500 18,573 1,073 14,580 Culture and RecreatIOn I Parks - Salanes and Benefits 47,200 45,245 (1,955) 35,185 Refuse DIsposal 600 1,006 406 568 I RepaIrs and MaIntenance 4,000 2,312 (1,688) 4,607 EqUIpment Rental 2,500 2,044 (456) 1,463 Other Insurance 3,465 3,587 122 1,797 Telephone 700 761 61 739 I Travel 200 0 (200) 44 Supphes 2,200 2,197 (3) 3,818 UtIhtIes 4,450 3,220 (1,230) 2,324 I Dues and SUbSCrIptIOns 0 0 0 500 FrIendly CIty Days DonatIOns 4,250 3,050 (1,200) 6,200 Ice Arena 15,000 0 (15,000) 133,333 CapItal Outlay 30,500 23,389 (7,111) 147,436 I Other 0 5,364 5,364 0 Total Culture and RecreatIOn 115,065 92,175 (22,890) 338,014 I 42 CITY OF ALBERTVILLE, MINNESOTA I GENERAL FUND I STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCE- BUDGET AND ACTUAL Year Ended December 31, 1999 I With Comparative Totals for the Year Ended December 31, 1998 (Contmued) Over I (Under) 1998 Budget Actual Budget Actual I EXPENDITURES (Contmued) EconomIc Development Salanes and Benefits $ 517 $ 0 $ (517) $ 101 I SupplIes 200 0 (200) 0 MIscellaneous 100 924 824 924 Total Econormc Development 817 924 107 1,025 Unallocated - I Other 0 0 0 3,157 TOTAL EXPENDITURES 825,059 893,901 68,842 1,313,331 I EXCESS OF REVENUES OVER (UNDER) EXPENDITURES 140,950 207,801 66,851 (199,690) I OTHER FINANCING SOURCES (USES) Sale of General FIxed Assets 0 501 501 2,090 Operatmg Transfer In 0 0 0 105,789 I Total Other Fmancmg Sources (Uses) 0 501 501 107,879 EXCESS OF REVENUES AND OTHER I FINANCING SOURCES OVER EXPENDITURES AND OTHER FINANCING USES $ 140,950 208,302 $ 67,352 (91,811) FUND BALANCE, January 1 (as prevIously stated) 381,394 473,205 I PRIOR PERIOD ADJUSTMENT (200,334) 0 FUND BALANCE, January 1 (as restated) 181,060 473,205 I FUND BALANCE, December 31 $ 389,362 $ 381,394 I I I I I 43 I Cash and Investments Notes ReceIvable I I I I I I I I I I I I I I I I I I I CITY OF ALBERTVILLE, MINNESOTA SPECIAL REVENUE FUNDS COMBINING BALANCE SHEET December 31, 1999 WIth Comparative Totals for December 31, 1998 102 I J 201 I ~ 203 CapItal Revolvmg Outlay Park Loan Reserves Fund Fund $ 358,717 $ 107,644 $ 10,685 0 0 137,676 $ 358,717 $ 107,644 $ 148,361 ASSETS TOTAL ASSETS LIABILITIES AND FUND BALANCE Cash Overdraft Deferred Revenue Total LIabIlIties $ $ o o o $ 0 137,676 137,676 o o o Fund Balance Unreserved - DeSIgnated for CapItal Outlay UndesIgnated Total Fund Balance (DefiCIt) 358,717 o 358,717 o 107,644 107,644 o 10,685 10,685 TOTAL LIABILITIES AND FUND BALANCE $ 358,717 $ 107,644 $ 148,361 I I I I I I I I I I I I I I I I I I I 204 I I 205 Totals SAC CMIF 1999 1998 $ 2,099,627 $ 0 $ 2,576,673 $ 2,176,634 0 0 137,676 68,445 $ 2,099,627 $ 0 $ 2,714,349 $ 2,245,079 $ 0 o o $ 2,663 o 2,663 $ 2,663 137,676 140,339 $ 2,552 68,445 70,997 o 2,099,627 2,099,627 o (2,663) (2,663) 358,717 2,215,293 2,574,010 342,657 1,831,425 2,174,082 $ 2,099,627 $ 0 $ 2,714,349 $ 2,245,079 44 I CITY OF ALBERTVILLE, MINNESOTA SPECIAL REVENUE FUNDS I COMBINING STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE I Year Ended December 31, 1999 WIth ComparatIve Totals for the Year Ended December 31, 1998 102 I I 201 I I 203 I CapItal Revolvmg I Outlay Park Loan Reserves Fund Fund REVENUES I Intergovernmental Revenues - State Grants $ 0 $ 42,471 $ 0 Charges for ServIces - Park DedIcatton Fees 0 141,306 0 I Water AvatlabtlIty Charges 0 0 0 Sewer A vatlabIhty Charges 0 0 0 Trunk Access Charges 0 0 0 MIscellaneous - I Investment Income 16,060 3,138 3,662 DonatIons 0 2,500 0 Loan Repayments and Other 0 0 5,769 I Total Revenues 16,060 189,415 9,431 EXPENDITURES Culture and RecreatlOn - I Planmng Contract ServIces 0 9,787 0 ConstructIon ServIces 0 83,094 0 CapItal Outlay 0 67,751 0 I EconomIc Development 0 0 75,000 MIscellaneous - Interest 0 0 0 Total ExpendItures 0 160,632 75,000 I EXCESS OF REVENUES OVER (UNDER) EXPENDITURES 16,060 28,783 (65,569) I OTHER FINANCING SOURCES (USES) Operatmg Transfers Out 0 0 0 EXCESS OF REVENUES AND OTHER I FINANCING SOURCES OVER (UNDER) EXPENDITURES AND OTHER FINANCING USES 16,060 28,783 (65,569) I FUND BALANCE (DEFICIT) - January 1 342,657 78,861 76,254 RESIDUAL EQUITY TRANSFER 0 0 0 I FUND BALANCE (DEFICIT) - December 31 $ 358,717 $ 107 ,644 $ 10,685 I I I I I I I 204 I I 205 I I 206 I WAC Totals SAC CMIF Fees 1999 1998 I $ 0 $ 0 $ 0 $ 42,471 $ 0 I 0 0 0 141,306 17,900 0 0 0 0 12,600 477,700 0 0 477,700 400,000 33,570 0 0 33,570 41,230 I 77 ,963 0 0 100,823 96,757 0 0 0 2,500 5,000 I 0 0 0 5,769 163,223 589,233 0 0 804,139 736,710 I 0 0 0 9,787 0 0 0 0 83,094 3,416 I 0 0 0 67,751 0 0 0 0 75,000 0 0 111 0 111 133 I 0 111 0 235,743 3,549 I 589,233 (111) 0 568,396 733,161 0 0 0 0 (105,789) I 589,233 (111) 0 568,396 627,372 I 1,510,394 (2,552) 168,468 2,174,082 1,654,539 I 0 0 (168,468) (168,468) (107,829) $ 2,099,627 $ (2,663) $ 0 $ 2,574,010 $ 2,174,082 I I 45 I I CITY OF ALBERTVILLE, MINNESOTA DEBT SERVICE FUNDS I COMBINING BALANCE SHEET I December 31, 1999 WIth Comparative Totals for December 31, 1998 300 I I 317 I I 318 I I 322 I I 1992 Closed 1988 1989 Sewer I Bond Refundmg Refundmg Trunk Issues Bonds Bonds Bond Fund ASSETS I Cash and Investments $ 108,028 $ 0 $ 50,439 $ 92,148 Cash m Trust 0 0 0 0 RestrIcted Cash m Trust 0 0 0 0 I Taxes ReceIvable - Delmquent 786 98 354 304 SpeCial Assessments ReceIvable- I Deferred 33,393 15,756 3,939 51,744 Delmquent 602 0 281 0 Due from Other Governmental Umts 43 5 19 16 TOTAL ASSETS $ 142,852 $ 15,859 $ 55,032 $ 144,212 I LIABILITIES AND FUND BALANCE I LiabIlIties Cash Overdraft $ 0 $ 158,435 $ 0 $ 0 I Deferred Revenue 34,781 15,854 4,574 52,048 Total LIabIlIties 34,781 174,289 4,574 52,048 Fund Balance I Reserved for Debt ServIce 0 0 50,458 92,164 Unreserved - DeSIgnated for Debt ServIce 108,071 0 0 0 I UndesIgnated 0 (158,430) 0 0 Total Fund Balance (DefiCIt) 108,071 (158,430) 50,458 92,164 I TOTAL LIABILITIES AND FUND BALANCE $ 142,852 $ 15,859 $ 55,032 $ 144,212 I I I I I I I I 323 I I 324 I I 341 I I 353 I ~ 354 I GO GO 1993 1992 Improvement CIty 1999 I Refundmg & Refundmg Hall 1996A Lease Improvement Bond Bond GO TIF Revenue Fund Fund Fund Bond Fund Bonds I $ 14,214 $ 181,535 $ 15,802 $ 0 $ 0 0 0 0 0 2,224 I 0 0 0 0 77,904 501 0 901 330 0 I 5,135 106,749 0 102,016 0 282 29,713 0 0 0 27 0 48 12 0 I $ 20,159 $ 317,997 $ 16,751 $ 102,358 $ 80,128 I I $ 0 $ 0 $ 0 $ 15,383 $ 1,111 5,918 136,462 901 102,346 0 5,918 136,462 901 117,729 1,111 I 14,241 181,535 15,850 0 79,017 I 0 0 0 0 0 0 0 0 (15,371) 0 14,241 181,535 15,850 (15,371) 79,017 I $ 20,159 $ 317,997 $ 16,751 $ 102,358 $ 80,128 I I I 46 I I I I I I I I I I I I I I I I I I I I CITY OF ALBERTVILLE, MINNESOTA DEBT SERVICE FUNDS COMB~GBALANCESHEET December 31, 1999 WIth Comparative Totals for December 31, 1998 (Contmued) 355 ASSETS 1999A GO Improvement Totals Bonds 1999 1998 $ 3,683 $ 465,849 $ 555,575 0 2,224 0 0 77,904 0 0 3,274 1,994 1,476,864 1,795,596 433,067 0 30,878 18,817 0 170 469 $ 1,480,547 $ 2,375,895 $ 1,009,922 Cash and Investments Cash m Trust Restncted Cash m Trust Taxes ReceIvable - Delmquent SpecIal Assessments ReceIvable - Deferred Delmquent Due from Other Governmental Umts TOTAL ASSETS LIABILITIES AND FUND BALANCE LlablhtIes Cash Overdraft Deferred Revenue Total LIablhtIes $ 0 $ 174,929 $ 199,535 1,476,864 1,829,748 453,878 1,476,864 2,004,677 653,413 3,683 436,948 514,767 0 108,071 36,511 0 (173,801) (194,769) 3,683 371,218 356,509 $ 1,480,547 $ 2,375,895 $ 1,009,922 Fund Balance Reserved for Debt ServIce Unreserved - DesIgnated for Debt ServIce Undeslgnated Total Fund Balance (DefiCIt) TOTAL LIABILITIES AND FUND BALANCE 47 I CITY OF ALBERTVILLE, MINNESOTA DEBT SERVICE FUNDS I COMBINING STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE I Year Ended December 31, 1999 WIth Comparative Totals for the Year Ended December 31, 1998 I 300 I I 317 I I 318 I I 322 I 1992 I Closed 1988 1989 Sewer Bond Refundmg Refundmg Trunk Issues Bonds Bonds Bond Fund REVENUES I General Property Taxes $ 23,380 $ 2,683 $ 10,346 $ 8,775 SpeCial Assessments 5,945 1,565 5,118 19,488 Charges for ServIces 0 0 0 0 MIscellaneous - I Investment Income 1,933 0 2,233 4,545 Total Revenues 31,258 4,248 17,697 32,808 EXPENDITURES I MIscellaneous - Interest 0 6,711 0 0 Debt ServIce - I Bond PnncIpal 0 15,000 25,000 30,000 Bond Interest and FIscal Charges 0 2,309 6,730 10,562 Total ExpendItures 0 24,020 31,730 40,562 I EXCESS OF REVENUES OVER (UNDER) EXPENDITURES 31,258 (19,772) (14,033) (7,754) OTHER FINANCING SOURCES (USES) I Bond Proceeds 0 0 0 0 EXCESS OF REVENUES AND OTHER I FINANCING SOURCES OVER (UNDER) EXPENDITURES AND OTHER FINANCING USES 31,258 (19,772) (14,033) (7,754) FUND BALANCE (DEFICIT) - January 1 36,511 (138,658) 64,491 99,918 I RESIDUAL EQUITY TRANSFERS 40,302 0 0 0 FUND BALANCE (DEFICIT) - December 31 $ 108,071 $ (158,430) $ 50,458 $ 92,164 I I I I I I I I I 323 I I 324 I I 325 I I 327 I I 341 l J 351 I GO GO 1993 GO I 1992 Improvement 1993B Westwmd CIty Tax Refundmg & Refundmg Improvement 3rd Hall Increment Improvement Bond Bond UtIlItIes Bond Fmance Fund Fund Fund Fund Fund Bonds I $ 14,333 $ 0 $ 0 $ 0 $ 25,854 $ 0 10,069 58,231 0 0 0 0 0 0 0 0 0 0 I 0 5,921 904 776 0 206 24,402 64,152 904 776 25,854 206 I 150 0 0 0 90 0 I 15,000 65,000 0 0 20,000 0 2,062 12,704 0 0 5,793 0 I 17,212 77,704 0 0 25,883 0 7,190 (13,552) 904 776 (29) 206 I 0 0 0 0 0 0 I 7,190 (13,552) 904 776 (29) 206 I 7,051 195,087 20,779 17,843 15,879 4,719 0 0 (21,683) (18,619) 0 (4,925) I $ 14,241 $ 181,535 $ 0 $ 0 $ 15,850 $ 0 I I I 48 I I CITY OF ALBERTVILLE, MINNESOTA DEBT SERVICE FUNDS I COMBINING STATEMENT OF REVENUES, EXPENDITURES I AND CHANGES IN FUND BALANCE Year Ended December 31, 1999 Wlth Comparative Totals for the Year Ended December 31, 1998 (Contmued) I 352 I I 353 I I 354 I I 355 I 1990 Tax 1999 1999A I Increment 1996A Lease GO Fmance G 0 TIF Revenue Improvement Bonds Bond Fund Bonds Bonds REVENUES I General Property Taxes $ 24,940 $ 11 ,243 $ 0 $ 0 Special Assessments 0 23,477 0 0 Charges for Servlces 0 0 0 0 Miscellaneous - I Investment Income 4,077 0 718 0 Total Revenues 29,017 34,720 718 0 EXPENDITURES I Mlscellaneous - Interest 0 6,389 11 0 Debt Service - I Bond Pnnclpal 0 95,000 0 0 Bond Interest and FIscal Charges 0 15,533 1,100 0 Total ExpendItures 0 116,922 1,111 0 I EXCESS OF REVENUES OVER (UNDER) EXPENDITURES 29,017 (82,202) (393) 0 OTHER FINANCING SOURCES (USES) I Bond Proceeds 0 0 79,410 3,683 EXCESS OF REVENUES AND OTHER I FINANCING SOURCES OVER (UNDER) EXPENDITURES AND OTHER FINANCING USES 29,017 (82,202) 79,017 3,683 FUND BALANCE (DEFICIT) - January 1 93,719 (60,830) 0 0 I RESIDUAL EQUITY TRANSFERS (122,736) 127,661 0 0 FUND BALANCE (DEFICIT) - December 31 $ 0 $ (15,371) $ 79,017 $ 3,683 I I I I I CITY OF ALBERTVILLE, MINNESOTA CAPITAL PROJECTS FUNDS COMBINING BALANCE SHEET December 31, 1999 WIth ComparatIve Totals for December 31, 1998 I I I I I I I I I I I I I I I I I I I 400 I I 406 I I 407 I I 408 l I 409 TIF #8 TIF #9 Closed TIF #6 TIF #7 Vetsch Barthel CapItal Fraser Semor Custom Bus Projects Steel Housmg Cabmets Garage ASSETS Cash and Investments $ 163,863 $ 20,888 $ 0 $ 7,985 $ 0 Cash m Trust 0 0 0 0 0 SpecIal Assessments ReceIvable - Deferred 0 0 0 0 0 Accounts ReceIvable 0 0 0 0 0 TOTAL ASSETS $ 163,863 $ 20,888 $ 0 $ 7,985 $ 0 UABILITIES AND FUND BALANCE LIabIlItIes Cash Overdraft $ 0 $ 0 $ 181 $ 0 $ 95 Accounts Payable 28,537 20,913 0 0 0 Contracts and Retamages Payable 0 0 0 0 0 Deferred Revenue 0 0 0 0 0 Total LIabIlItIes 28,537 20,913 181 0 95 Fund Balance Unreserved - DesIgnated for CapItal Outlay 135,326 0 0 7,985 0 UndesIgnated 0 (25) (181) 0 (95) Total Fund Balance (DeficIt) 135,326 (25) (181) 7,985 (95) TOTAL LIABILITIES AND FUND BALANCE $ 163,863 $ 20,888 $ 0 $ 7,985 $ 0 I I I I 410 I I 411 I I 421 I I 426 I I 427 I I 428 I I 430 I Barthel TIF #11 Industnal North NE Sewer Parks ide TIF #10 Land of Dnve & Frontage Summerfield and Water 3rd I Mold-Tech Lakes Tile 52nd Street Road Addition ExtensiOn Addition $ 0 $ 0 $ 0 $ 0 $ 0 $ 0 $ 0 I 0 0 0 0 0 0 0 0 0 0 14,000 0 0 0 0 0 0 0 0 0 0 I $ 0 $ 0 $ 0 $ 14,000 $ 0 $ 0 $ 0 I $ 4,640 $ 16,857 $ 10,248 $ 3,905 $ 21,134 $ 8,639 $ 17,225 0 0 0 0 0 0 0 0 0 0 0 0 0 0 I 0 0 0 14,000 0 0 0 4,640 16,857 10,248 17,905 21,134 8,639 17,225 I 0 0 0 0 0 0 0 (4,640) (16,857) (10,248) (3,905) (21,134) (8,639) (17,225) I (4,640) (16,857) (10,248) (3,905) (21,134) (8,639) (17,225) $ 0 $ 0 $ 0 $ 14,000 $ 0 $ 0 $ 0 I I I I I I 50 I ASSETS Cash and Investments Cash m Trust SpecIal Assessments ReceIvable - Deferred Accounts ReceIvable I I I I I I I I I I I I I I I I I I I CITY OF ALBERTVILLE, MINNESOTA CAPITAL PROJECTS FUNDS COMBINING BALANCE SHEET December 31, 1999 WIth Comparative Totals for December 31, 1998 (Contmued) I 432 & 434 I ParksIde 4th AddItion $ 0 0 0 0 $ 0 TOTAL ASSETS LIABILITIES AND FUND BALANCE Llablllues Cash Overdraft Accounts Payable Contracts and Retamages Payable Deferred Revenue Total LIablllues Fund Balance Unreserved - DeSIgnated for CapItal Outlay Undeslgnated Total Fund Balance (DefiCIt) TOTAL LIABILITIES AND FUND BALANCE $ 28,953 o o o 28,953 o "(28,953) (28,953) $ 433 I I 435 I I 438 Cottages of Cedar Creek AlbertvIlle Industnal Cedar Creek TIF #7 Park North $ 0 $ 0 $ 0 0 0 0 0 0 0 0 0 0 $ 0 $ 0 $ 0 $ 27,570 o o o 27,570 $ 2,618 o o o 2,618 $ 71,026 1,013 o o 72,039 o (27,570) (27,570) o (2,618) (2,618) o (72,039) (72,039) o $ $ $ 0 o o I I I I 439 , I 440 I I 442 I I 443 I I 444 , I 445 I I 446 I Center Parkslde Barthel Bus I Oaks 1 st Commercial Garage Karston Psyk's AlbertvIlle Addlt10n Park TIP #9 Cove 7th Addlt10n Crossmgs FIre Hall $ 0 $ 0 $ 0 $ 0 $ 0 $ 0 $ 0 I 0 0 0 0 0 0 776,852 0 0 0 0 0 0 0 0 0 0 0 0 0 0 I $ 0 $ 0 $ 0 $ 0 $ 0 $ 0 $ 776,852 I $ 107,134 $ 2,547 $ 5,634 $ 17,340 $ 16,861 $ 660 $ 458,178 655 0 0 0 0 275 1,190 0 0 0 0 0 0 175,678 I 0 0 0 0 0 0 0 107,789 2,547 5,634 17,340 16,861 935 635,046 I 0 0 0 0 0 0 141,806 (107,789) (2,547) (5,634) (17,340) (16,861) (935) 0 I (107,789) (2,547) (5,634) (17,340) (16,861) (935) 141,806 $ 0 $ 0 $ 0 $ 0 $ 0 $ 0 $ 776,852 I I I I I I 51 I 447 I I 448 l I 449 I I 450 I I 451 I I I I I I I I I I I I I I I I I I I CITY OF ALBERTVILLE, MINNESOTA CAPITAL PROJECTS FUNDS COMBINING BALANCE SHEET December 31, 1999 WIth ComparatIve Totals for December 31, 1998 (Contmued) 57th Street CSAH 19 62nd Street AlbertvIlle Mooney Improvement Improvement Improvement VIllas AddItIon ASSETS Cash and Investments $ 0 $ 59,012 $ 113,610 $ 0 $ 0 Cash m Trust 0 0 0 0 0 SpecIal Assessments ReceIvable - Deferred 0 0 0 0 0 Accounts ReceIvable 160,503 0 0 0 0 TOTAL ASSETS $ 160,503 $ 59,012 $ 113,610 $ 0 $ 0 LIABILITIES AND FUND BALANCE LIabIlItIes Cash Overdraft $ 159,772 $ 0 $ 0 $ 12,772 $ 1,788 Accounts Payable 0 0 2,885 873 0 Contracts and Retamages Payable 51,541 0 44,054 0 0 Deferred Revenue 0 0 0 0 0 Total LIabIlItIes 211,313 0 46,939 13,645 1,788 Fund Balance Unreserved - DesIgnated for CapItal Outlay 0 59,012 66,671 0 0 UndesIgnated (50,810) 0 0 (13,645) (1,788) Total Fund Balance (DefiCIt) (50,810) 59,012 66,671 (13,645) (1,788) TOTAL LIABILITIES AND FUND BALANCE $ 160,503 $ 59,012 $ 113,610 $ 0 $ 0 I CITY OF ALBERTVILLE, MINNESOTA CAPITAL PROJECTS FUNDS I COMBINING STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE Year Ended December 31, 1999 I WIth ComparatIve Totals for the Year Ended December 31,1998 400 403 406 407 408 409 I 1989 AlbertvIlle TIF #8 TIF #9 Closed Dramage TIF #6 TIF #7 Vetsch Barthel I CapItal Improvement Fraser Semor Custom Bus Projects ProJect Steel Housmg Cabmets Garage REVENUES Property Taxes $ 0 $ 0 $ 41,826 $ 6,654 $ 8,430 $ 0 SpecIal Assessments 0 0 0 0 0 0 I Charges for ServIces 0 0 0 0 0 0 MIscellaneous Revenues - InvestrnentIncome 9,052 0 0 0 75 0 Developer ReImbursements 0 0 0 0 0 0 I Total Revenues 9,052 0 41,826 6,654 8,505 0 EXPENDITURES Other 0 1,406 41,826 3,031 0 0 CapItal Outlay - I Engmeer Fees 0 0 0 0 0 0 Legal Fees 0 0 0 3,804 493 28 Other ProfessIonal ServIces 0 0 0 0 0 0 Land 0 0 0 0 0 0 I Construction ServIces 0 38,130 0 0 0 0 Total ExpendItures 0 39,536 41,826 6,835 493 28 EXCESS OF REVENUES OVER (UNDER) EXPENDITURES 9,052 (39,536) 0 (181) 8,012 (28) I OTHER FINANCING SOURCES Bond Proceeds 0 0 0 0 0 0 EXCESS OF REVENUES AND OTHER I FINANCING SOURCES OVER (UNDER) EXPENDITURES 9,052 (39,536) 0 (181) 8,012 (28) FUND BALANCE (DEFICIT) - January 1 208,035 5,814 (25) 0 0 0 I RESIDUAL EQUITY TRANSFERS (81,761) 33,722 0 0 (27) (67) FUND BALANCE (DEFICrn - December 31 $ 135,326 $ 0 $ (25) $ (81) $ 7,985 $ (95) I I I I I I I I I I I 410 411 421 423 426 427 428 429 430 Barthel I TIF#II Industnal Bnttany North NE Sewer CSAH Parkslde TIF #10 Land of Dnve & Kay Frontage Summerfield & Water 19/37 3rd Mold-Tech Lakes Tile 52nd Street Estates Road AddItIon ExtensIOn AddItIOn AdditIon $ 0 $ 0 $ 0 $ 0 $ 0 $ 0 $ 0 $ 0 $ 0 I 0 0 0 0 36,361 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 1,077 0 I 0 0 0 0 0 0 0 0 0 0 0 0 0 36,361 0 0 1,077 0 162 4,573 428 13 1,090 874 360 0 718 I 0 0 0 0 0 897 0 0 0 1,525 9,959 0 0 0 0 0 9,297 27 0 2,325 0 0 0 0 0 7,415 0 I 0 0 0 0 0 0 0 24,925 0 0 0 0 0 0 0 0 0 0 1,687 16,857 428 13 1,090 1,771 360 41,637 745 I (1,687) ( 16,857) (428) (13) 35,271 (1,771) (360) (40,560) (745) 0 0 0 0 0 0 0 0 0 I (1,687) (16,857) (428) (13) 35,271 (1,771) (360) (40,560) (745) I (3,047) 0 (9,820) (318) (39,176) ( 19,363) (8,279) 3214 (16,480) 94 0 0 331 0 0 0 37,346 0 I $ (4,640) $ (16,857) $ (10,248) $ 0 $ (3,905) $ (21,134) $ (8,639) $ 0 $ (17,225) I I I I I 53 I I CITY OF ALBERTVILLE, MINNESOTA CAPITAL PROJECTS FUNDS I COMBINING STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE Year Ended December 31, 1999 I With Comparative Totals for the Year Ended December 31 1998 (Contmued) 431 432 & 434 433 435 436 437 I Vetsch Cottages Custom Parkslde of Cedar Creek I Cabmets 4th Albertville lndustnal Mamtenance TlF #8 Addition TIF #7 Park BUlldmg The Meadow REVENUES Property Taxes $ 0 $ 0 $ 0 $ 0 $ 0 $ 0 SpecIal Assessments 0 0 0 0 0 0 I Charges for SeTVIces 0 0 0 0 0 0 MIscellaneous Revenues - Investment Income 0 0 0 0 0 0 Developer ReImbursements 0 0 0 0 0 0 I Total Revenues 0 0 0 0 0 0 EXPENDITURES Other 269 1,207 1,102 109 61 0 CapItal Outlay - I Engmeer Fees 0 46 1,905 0 0 0 Legal Fees 0 0 1,671 28 0 0 Other ProfeSSIonal ServIces 0 0 0 0 0 0 Land 0 0 0 0 0 0 I ConstructIon ServIces 0 0 0 0 0 0 Total ExpendItures 269 1,253 4,678 137 61 0 EXCESS OF REVENUES OVER (UNDER) EXPENDITURES (269) (1,253) (4,678) (137) (61) 0 I OTHER FINANCING SOURCES Bond Proceeds 0 0 0 0 0 0 EXCESS OF REVENUES AND OTHER I FINANCING SOURCES OVER (UNDER) EXPENDITURES (269) (1,253) (4,678) (137) (61) 0 FUND BALANCE (DEFICIT) - January I (6,186) (27,700) (22,892) (2,481 ) (1,408) 13 I RESIDUAL EQUITY TRANSFERS 6,455 0 0 0 1,469 (13) FUND BALANCE (DEFICIT) - December 31 $ 0 $ (28,953) $ (27,570) $ (2.618) $ 0 $ 0 I I I I I I I - -- ---~ I I I I 438 439 440 441 442 443 444 I Center Parkslde Security Barthel Bus Cedar Creek Oaks 1st CommercIal Bank of Garage Karston Psyk's North AddItIOn Park Maple Lake TlF #9 Cove 7th AddItIOn $ 0 $ 0 $ 0 $ 0 $ 0 $ 0 $ 0 I 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 I 0 0 0 0 0 0 0 0 0 0 0 0 0 0 2,359 3,890 106 102 235 683 544 I 23,166 19,432 0 0 0 2,583 8,802 2,063 3,080 0 0 0 220 137 720 500 0 0 0 0 0 I 0 0 0 0 0 0 0 0 0 0 0 0 0 0 28,308 26,902 106 102 235 3,486 9,483 I (28,308) (26,902) (106) (102) (235) (3,486) (9,483 ) 0 0 0 0 0 0 0 I (28,308) (26,902) (106) (102) (235) (3,486) (9,483) I (43,731) (80,887) (2,441 ) (2,349) (5,399) (13,854) (7,378) 0 0 0 2,451 0 0 0 I $ (72,039) $ (107,789) $ (2.547) $ 0 $ (5,634) $ (17,340) $ (16.861) I I I I I 54 I I CITY OF ALBERTVILLE, MINNESOTA CAPITAL PROJECTS FUNDS I COMBINING STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE Year Ended December 31, 1999 I With Comparative Totals for the Year Ended December 31 1998 (Contmued) 445 446 447 448 449 450 I A1bertvl1\e 57th Street CSAH 19 62nd Street Albertvl1\e I Crossmgs FIre Hall Improvement Improvemenl Improvement Villas REVENUES Property Taxes $ 0 $ 0 $ 0 $ 0 $ 0 $ 0 Special Assessments 0 0 0 0 0 0 I Charges for Services 8,850 D 0 0 0 0 Miscellaneous Revenues - Investment Income 181 6,958 0 0 0 0 Developer Reimbursements 0 0 160,503 0 0 0 I Total Revenues 9,031 6,958 160,503 0 0 0 EXPENDITURES Other 0 1,331 10,061 467 739 119 Capital Outlay - I Engmeer Fees 300 45,299 97,039 57,222 51,580 5,456 Legal Fees 5,940 7,045 2,870 2,117 1,744 632 Other Professional Services 3,726 16,113 5,150 4,938 4,939 7,438 Land 0 0 0 0 0 0 I Constructton Services 0 565,258 1,032,210 228,906 328,048 0 Total Expenditures 9,966 635,046 1,147,330 293,650 387,050 13,645 EXCESS OF REVENUES OVER (UNDER) EXPENDITURES (935) (628,088) (986,827) (293,650) (387,050) (13,645) I OTHER FINANCING SOURCES Bond Proceeds 0 769,894 936,017 352,662 453,721 0 EXCESS OF REVENUES AND OTHER I FINANCING SOURCES OVER (UNDER) EXPENDITURES (935) 141806 (50,810) 59,012 66,671 (13,645) FUND BALANCE (DEFICIT) - January I 0 0 0 0 0 0 I RESIDUAL EQUITY TRANSFERS 0 0 0 0 0 0 FUND BALANCE (DEFICIT) - December 31 $ (935) $ 141,806 $ (50,810) $ 59,012 $ 66,671 $ (13,645) I I I I I I I I I I I I I I I I I I I I I I I I I I CITY OF ALBERTVILLE, MINNESOTA ENTERPRISE FUNDS Enterpnse Funds are establIshed to account for the financmg of self-supportmg activIties of governmental umts whIch render servIces on a user charge basIs to the general publIc The most umversal type of government enterpnse IS the publIc utilIty engaged m the prOVISIOn of such basIc servIces as water, electnclty, and natural gas SanItary sewer systems financed by user charges have also assumed the status of publIc utilIty operatIOns m many urban areas, and many cIties have combmed water and sewer systems under the same management I CITY OF ALBERTVILLE, MINNESOTA ENTERPRISE FUNDS I COMBINING BALANCE SHEET I December 31, 1999 WIth ComparatIve Totals for December 31, 1998 601 I I 602 I I 604 I Sarutary Storm I ASSETS Sewer Water Water CURRENT ASSETS Cash and Cash EqUIvalents $ 0 $ 245,707 $ 161,223 I Accounts ReceIvable 57,972 0 6,945 Due From Other Governments 34,897 9,098 85,169 Total Current Assets 92,869 254,805 253,337 I FIXED ASSETS Land 190,269 0 0 I Sewer Plant and Lmes 3,741,108 0 0 Water Mam 0 296,263 0 Machmery and EqUIpment 98,194 13,532 0 I ConstructIon In Progress 234,130 0 0 Total Cost 4,263,701 309,795 0 Less Accumulated DeprecIatIOn (835,167) (322) 0 I Net FIxed Assets 3,428,534 309,473 0 TOTAL ASSETS $ 3,521,403 $ 564,278 $ 253,337 I LIABILITIES AND FUND EQUITY CURRENT LIABILITIES Cash Overdraft $ 192,592 $ 0 $ 0 I Accounts Payable 23,449 11,090 0 Current MaturItIes of Long-Term Debt 61,489 0 0 Total Current LIabIlItIes 277,530 11,090 0 I LONG-TERM DEBT, LESS CURRENT PORTION G 0 Revenue Notes - PF A 1,111,624 0 0 I Total LiabIlItIes 1,389,154 11,090 0 FUND EQUITY I Contnbuted CapItal 2,057,256 296,263 0 Retamed Earmngs - I Reserved for Operatmg CapItal 97,894 0 0 Unreserved (22,90 I) 256,925 253,337 Total Fund EqUIty 2,132,249 553,188 253,337 TOTAL LIABILITIES AND I FUND EQUITY $ 3,521,403 $ 564,278 $ 253,337 I I I I I I I Totals 1999 1998 I $ 406,930 $ 126,725 64,917 91,420 129,164 83,333 I 601,011 301,478 I 190,269 190,269 3,741,108 3,552,460 296,263 0 I 111,726 84,663 234,130 41,006 4,573,496 3,868,398 I (835,489) (757,947) 3,738,007 3,110,451 I $ 4,339,018 $ 3,411,929 I $ 192,592 $ 35,340 34,539 9,779 61,489 59,496 I 288,620 104,615 I 1,111,624 1,173,176 1,400,244 1,277,791 I 2,353,519 1,868,608 I 97,894 97,894 487,361 167,636 2,938,774 2,134,138 I $ 4,339,018 $ 3,411,929 I 56 I I CITY OF ALBERTVILLE, MINNESOTA ENTERPRISE FUNDS I COMBINING STATEMENT OF REVENUES, EXPENSES AND I CHANGES IN RETAINED EARNINGS Year Ended December 31, 1999 WIth Comparative Totals for the Year Ended December 31, 1998 I 601 I I 602 I l 604 I Samtary Storm Sewer Water Water OPERATING REVENUES I Charges for ServIces $ 239,248 $ 38,750 $ 53,689 Water AvaIlabIlIty Charges 0 36,431 0 I Penalties 16,398 0 1,050 Total Operatmg Revenues 255,646 75,181 54,739 OPERATING EXPENSES I SalarIes and Benefits 821 821 0 RepaIrs and Mamtenance 5,673 7,437 4,950 I Engmeer Fees 0 0 9,915 Legal Fees 110 0 55 SupplIes 4,368 2,645 306 I ProfessIonal ServIces 103,250 0 525 Insurance 3,557 387 0 DeprecIatIOn 77,220 322 0 MIscellaneous 498 0 0 I Total Operatmg Expenses 195,497 11,612 15,751 OPERATING INCOME 60,149 63,569 38,988 I NON-OPERATING REVENUES (EXPENSES) I Water Meter Sales 0 21,052 0 Interest Income (Expense) (2,182) 11,000 6,216 Bond Interest Expense and FIscal Charges (40,371) 0 0 I Water Meter Purchases 0 (7,164) 0 Total Non-Operatmg Revenues (Expenses) (42,553) 24,888 6,216 I NET INCOME 17,596 88,457 45,204 RETAINED EARNINGS - January 1 57,397 0 208,133 I RESIDUAL EQillTY TRANSFER 0 168,468 0 RETAINED EARNINGS - December 31 $ 74,993 $ 256,925 $ 253,337 I I I I CITY OF ALBERTVILLE, MINNESOTA ENTERPRISE FUNDS I COMBINING STATEMENT OF CASH FLOWS I Year Ended December 31, 1999 WIth ComparatIve Totals for the Year Ended December 31, 1998 601 I I 602 I I 603 I Samtary Storm I Sewer Water Water CASH FLOWS FROM OPERATING ACTIVITIES OperatIng Income $ 60,149 $ 63,569 $ 38,988 Adjustments to ReconcIle OperatIng Income to I Net Cash ProvIded (Used) by OperatIng ActIvItIes DeprecIatIon 77 ,220 322 0 Change In Assets and LIabIlItIes I (Increase) Decrease In Accounts ReceIvable 25,676 0 827 (Increase) In Due From Other Governments (34,897) (9,098) (1,836) Increase (Decrease) In Accounts Payable 23,367 11,090 (9,697) I Total Adjustments 91,366 2,314 (10,706) Net Cash PrOVIded by OperatIng ActIVItIes 151,515 65,883 28,282 CASH FLOWS FROM NONCAPITAL FINANCING ACTIVITIES I ReSIdual EqUIty Transfers In 0 168,468 0 CASH FLOWS FROM CAPITAL AND RELATED FINANCING I ACTIVITIES PnncIpal Payments on Bonds (59,559) 0 0 Interest and FIscal Charges PaId on Bonds (40,371) 0 0 I Proceeds from Sales of Water Meters 0 21,052 0 AcqUISItIon of Water Meters 0 (7,164) 0 AcqUISItIon of FIXed Assets (206,655) (13,532) 0 I Net Cash (Used) by CapItal and Related FInancIng ActIVItIes (306,585) 356 0 CASH FLOWS FROM (FOR) INVESTING ACTIVITIES I Interest on Investments (2,182) 11 ,000 6,216 Net Increase (Decrease) In Cash and Cash EqUIvalents (157,252) 245,707 34,498 Cash and Cash EqUIvalents, January 1 (35,340) 0 126,725 I Cash and Cash EqUIvalents, December 31 $ (192,592) $ 245.707 $ 161,223 I I I I I CITY OF ALBERTVILLE, MINNESOTA GENERAL LONG-TERM DEBT ACCOUNT GROUP I I I I I I I I I I I I I I I I I I I General oblIgatIOn bonds and other forms oflong-term debt supported by general revenues are oblIgatIons of a governmental umt as a whole and not Its mdIvIdual constItuent funds Moreover, the proceeds of such debt may be spent on facIlItIes whIch are utIlIzed m the operatIOns of several funds For these reasons the amount of unmatured, long-term mdebtedness WhICh IS backed by the full froth and credIt of the government should be recorded and accounted for m a separate self-balancmg group of accounts tItled the "General Long-Term Debt Group of Accounts" ThIS debt group WIll mclude, m addItIon to conventIOnal general oblIgatIOn bonds, tIme warrants and notes whIch have a maturIty of more than one year from date of Issuance I I I I I I I I I I I I I I I I I I I CITY OF ALBERTVILLE, MINNESOTA STATEMENT OF GENERAL LONG-TERM DEBT December 31, 1999 and 1998 1999 1998 $ 371,218 $ 356,509 3,078,782 738,491 $ 3,450,000 $ 1 ,095,000 $ 15,000 $ 30,000 60,000 85,000 30,000 45,000 155,000 185,000 215,000 280,000 100,000 120,000 255,000 350,000 860,000 0 1,760,000 0 $ 3,450,000 $ 1,095,000 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 TOTAL AVAILABLE AND TO BE PROVIDED GENERAL LONG-TERM DEBT G 0 Advance Refundmg and Improvement Bond of 1988 G 0 Refundmg Bond of 1989 G 0 Refundmg Improvement Bond of 1992 G 0 Improvement Bonds, Senes 1992A G 0 Improvement Refundmg Bonds, Senes 1993A G 0 Improvement Refundmg Bonds, Senes 1993C G 0 Tax Increment Bonds, Senes 1996A Lease Revenue Bonds - PublIc FacIlIty, 1999 G 0 Improvement Bonds, Senes 1999 A TOTAL GENERAL LONG-TERM DEBT 60 61 I I I I I I I I I I I I I I I I I I I CITY OF ALBERTVILLE, MINNESOTA INDEPENDENT AUDITORS' REPORT ON COMPLIANCE WITH MINNESOTA STATUTES June 29,2000 Honorable Mayor and CIty CouncIl CIty of AlbertvIlle AlbertvIlle, Mmnesota We have audIted the general purpose finanCIal statements of the CIty of AlbertvIlle as of and for the year ended December 31, 1999, and have Issued our report thereon dated March 16, 2000 We conducted our audIt m accordance wIth generally accepted audItmg standards and the provIsIons of the Mznnesota Legal Complzance Audzt GUide for Local Government, promulgated by the Legal ComplIance Task Force pursuant to Mznnesota Statute Sec 6 65 Accordmgly, the audIt mcluded such tests ofthe accountmg records and such other audItmg procedures as we conSIdered necessary m the CIrcumstances The Mznnesota Legal Complzance Audlt Gulde for Local Government covers five mam categones of complIance to be tested contractmg and bIddmg, depOSIts and mvestments, conflIcts of mterest, publIc mdebtedness, and claims and dIsbursements Our study mcluded all ofthe lIsted categones The results of our tests mdIcate that for the Items tested the City complIed WIth the matenal terms and condItions of applIcable legal provlSlons, except as descnbed on the followmg page ThIS report IS mtended solely for the mformatIon and use of management, City CouncIl, and state regulatory and oversIght agenCIes and IS not mtended to be, and should not be, used by anyone other than those speCIfied partIes ~" I D~ W'.t,14-!,lA.J I t/ ~. i--I-d. Kern, DeWenter, VIere, Ltd St Cloud, MInnesota I I I I I I I I I I I I I I I I I I I CITY OF ALBERTVILLE MINNESOTA FINDINGS AND CORRECTIVE ACTION PLANS ON COMPLIANCE WITH MINNESOTA STATUTES Year Ended December 31, 1999 CURRENT YEAR FINDING In 1992, the Federal Court Appeals stated three steps are reqUIred to perfect a secunty mterest m the pledge of collateral under federal law 1 The assIgnment must be m wntmg 2 The deposItory's board of dIrectors or loan commIttee must have approved the asSIgnment 3 The asSIgnment needs to have been contmuously, from the tIme of ItS executIon, an offiCIal record of the deposItory WIthout perfectIon, there IS a pOSSIbIlIty the assIgnment could be defeated If the deposItory falls Currently, Mznnesota Statutes reqUIres the first perfectIOn step The second and thIrd steps reqUIre a government entIty to obtam a certIficatIOn of adoptIOn of the depOSItory's loan commIttee or board's resolutIon ThIs resolutIon states the detaIls ofthe pledge as speCIfied m the asSIgnment and pledges the resolutIOn shall be an offiCIal record of the mstItutIon ThIS certIficatIOn IS to be SIgned by the secretary and preSIdent or other officer of the depOSItory To ensure the CIty'S collateral IS perfected under federal law, we recommend the CIty obtam mmutes from ItS officIal depOSItory or a board resolutIon outlmmg the collateral pledged to the CIty CORRECTIVE ACTION PLAN (CAP) 1 ExplanatIOn of DISagreement WIth AudIt Fmdmg There IS no dIsagreement WIth the audIt findmg 2 ActIOns Planned m Response to Fmdmg The CIty WIll perfect a secunty mterest m ItS pledged collateral 3 OfficIal ResponSIble for Ensunng CAP Lmda Goeb, CIty AdmmIstrator, IS responSIble for ensunng the correctIve actIon ofthe defiCIency 4 Planned CompletIon Date for CAP The planned completIOn date for the CAP IS December 31, 2000 5 Plan to Momtor CompletIon of CAP The John Olson, Mayor, and the CIty CounCIl WIll be momtonng thIS correctIve actIon plan 62 63 I I I I I I I I I I I I I I I I I I I CITY OF ALBERTVILLE, MINNESOTA FINDINGS AND CORRECTIVE ACTION PLANS ON COMPLIANCE WITH MINNESOTA STATUTES Year Ended December 31, 1999 (Contmued) PRIOR YEAR FINDING Collateral Mmnesota Statutes Sec 11801 and 118 10, provIde that all deposIts wIth financIal mstItutIOns must be collateralIzed m an amount equal to 110% of deposIts m excess of FDIC msurance The deposIts of the CIty at December 31, 1998, were unsecured as follows 110% of DeposIts m Excess of FDIC at December 31, 1998 Market Value of Collateral at December 31, 1998 Unsecured State Bank of Rogers $ 558,617 $ 504,115 $ 54,502 CORRECTIVE ACTION TAKEN The CIty obtamed adequate collateral