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2000 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 - CombIned Balance Sheet - All Fund Types and Account Groups CombIned Statement of Revenues, ExpendItures and Changes In Fund Balance - All Governmental Fund Types CombIned Statement of Revenues, ExpendItures and Changes In Fund Balance - Budget and Actual - General and SpeCIal Revenue Fund Types CombIned Statement of Revenues, Expenses and Changes In RetaIned Earmngs - All Propnetary Fund Types CombIned Statement of Cash Flows - All Propnetary Fund Types Notes to the FInancIal Statements COMBINING, INDIVIDUAL FUND AND ACCOUNT GROUP FINANCIAL STATEMENTS - General Fund - ComparatIve Balance Sheet Statement of Revenues, ExpendItures and Changes In Fund Balance - Budget and Actual SpeCIal Revenue Funds - CombInIng Balance Sheet CombInIng Statement of Revenues, ExpendItures and Changes In Fund Balance Debt ServIce Funds CombInIng Balance Sheet CombInIng Statement of Revenues, ExpendItures, and Changes In Fund Balance CapItal Projects Funds - CombInIng Balance Sheet CombInIng Statement of Revenues, ExpendItures and Changes In Fund Balance Enterpnse Funds - CombInIng Balance Sheet CombInIng Statement of Revenues, Expenses, and Changes In RetaIned EarnIngs CombInIng 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 43 44 45 47 49 52 55 56 57 58 59 60 61 I I I I I I I I I I I I I I I I I I I Elected Officials John Olson Robert Gundersen* John Vetsch Gary McCormack KeIth Franklm Appomted Lmda Goeb CITY OF ALBERTVILLE, MINNESOTA ELECTED OFFICIALS AND ADMINISTRATION December 31, 2000 PosItIon Term ExpIres Mayor CouncIl Member CouncIl Member CouncIl Member CouncIl Member December 31, 2000 December 31, 2002 December 31,2000 December 31, 2000 December 31, 2000 AdmImstrator Indefimte * Robert Gunderson resIgned December 31, 2000 1 I I I I I I I I I I I I I I I I I I I ~~ =1 Kern, OeWenter, Viere, Ltd. .~--'" Cerltfted Public Accountants INDEPENDENT AUDITORS' REPORT August 2, 2001 Honorable Mayor and CIty CouncIl CIty of AlbertvIlle AlbertvIlle, MInnesota We have audited the accompanymg general purpose financial statements of the CIty of AlbertvIlle, MInnesota, as of and for the year ended December 31, 2000, as lIsted m the table of contents These general purpose financial statements are the responsIbIlIty of the CIty'S management Our responsIbIlIty IS to express an opInIon on these general purpose fmancIal statements based on our audIt Except as dIscussed m the folloWIng paragraph, we conducted our audit in accordance With audItmg standards generally accepted m the Umted States of Amenca Those standards reqUIre that we plan and perform the audIt to obtam reasonable assurance about whether the general purpose financial statements are free of matenal mIsstatement An audIt mcludes examImng, on a test basIs, eVIdence supportmg the amounts and dIsclosures m the general purpose financial statements An audIt also mcludes assessmg the accountmg pnncIples used and sIgnIficant estImates made by management, as well as evaluatIng the overall general purpose fmancIal statement presentatIon We belIeve that our audit provIdes a reasonable basIS for our opImon Because the CIty does not mamtam adequate mstoncal cost fixed asset accountIng records, It was not practIcable to extend our auditIng procedures to enable us to express, and we do not express, an opImon on the balance sheet of the general fixed asset account group as of December 31, 2000 In our opInIon, 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 fmancial statements referred to above present faIrly, m all matenal respects, the finanCIal pOSItion of the CIty of AlbertvIlle, MInnesota, as of December 31,2000, and the results of ItS operatIons and cash flows of ItS propnetary fund types for the year then ended m confOrmIty WIth accountmg pnncIples generally accepted In the Umted States of Amenca 7100 Northland Circle No, SUite 119 Mmneapo!Js, MN 55428-1500 763-537-3011 · Fax 763-537-9682 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 formIng an OpInIOn on the general purpose financIal statements taken as a whole The combImng and IndIVIdual fund financIal statements lIsted In the table of contents are presented for purposes of addItional analysIs and are not a reqUired part of the general purpose financIal statements of CIty of AlbertVIlle, MInnesota Such Information has been subjected to the audItIng procedures applIed In the audIt ofthe general purpose financIal statements and, In our OpInIOn, IS faIrly stated In all matenal respects In relatIOn to the general purpose finanCIal statements taken as a whole +(.t/l., I\.. 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Kern, DeWenter, VIere, Ltd St Cloud, MInnesota 3 CITY OF ALBERTVILLE, MINNESOTA COMBINED BALANCE SHEET - ALL FUND TYPES AND ACCOUNT GROUPS December 31, 2000 Governmental Fund Types Special Debt ASSETS AND OTHER DEBITS General Revenue ServIce Assets Cash and Investments (Inc1udmg Cash EqUIvalents) $ 1,215,241 $ 3,545,057 $ 915,291 Cash m Trust 0 0 2,342 RestrIcted Cash m Trust 0 0 82,027 Taxes ReceIvable - DelInquent 19,369 0 2,875 SpecIal Assessments ReceIvable - Deferred 0 0 1,131,027 DelInquent 0 0 264,560 Accounts ReceIvable 0 0 0 Interest ReceIvable 8,521 0 0 Due from Other Governmental Umts 4,487 0 1,955 Notes ReceIVable 0 124,373 0 FIxed Assets - Net 0 0 0 Other DebIts Amount AvaIlable m Debt ServIce Funds 0 0 0 Amount to be ProvIded for RetIrement of General Long-Term Debt 0 0 0 TOTAL ASSETS AND OTHER DEBITS $ 1,247,618 $ 3,669,430 $ 2,400,077 LIABILITIES, EQUITY AND OTHER CREDITS LiabIlItIes Cash Overdraft Accounts Payable Contracts and Retamages Payable Accrued Payroll Taxes and Benefits Due to Other Governments Deferred Revenue Bonds Payable Revenue Notes Payable CapItal Leases Payable Total LiabIlItIes $ 0 $ 2,816 $ 183,954 576,649 1,040 0 0 0 0 9,856 0 0 22,586 0 0 19,369 124,373 1,398,462 0 0 0 0 0 0 0 0 0 628,460 128,229 1,582,416 0 0 0 0 0 0 0 0 0 0 0 0 0 0 851,110 700,000 234,364 150,415 (80,842) 3,306,837 (183,864) 619,158 3,541,201 817,661 $ 1,247,618 $ 3,669,430 $ 2,400,077 EqUIty and Other CredIts Investment m General FIxed Assets Contnbuted CapItal Retamed Earnmgs - Reserved Unreserved Fund Balance - Reserved Unreserved - DeSIgnated UndesIgnated Total EqUIty and Other CredIts TOTAL LIABILITIES, EQUITY AND OTHER CREDITS The notes to the financIal statements are an mtegral part of thIS statement I I I I I I I I I I I I I I I I I I I I I I Propnetary Fund Type Account Groups General I FIXed General Totals CapItal Assets Long-Term (Memorandum Only) Projects Enterpnse (UnaudIted) Debt 2000 1999 I $ 1,777,554 $ 840,579 $ 0 $ 0 $ 8,293,722 $ 4,644,972 817,972 0 0 0 820,314 779,076 I 0 0 0 0 82,027 77 ,904 0 0 0 0 22,244 21,929 I 12,000 0 0 0 1,143,027 1,809,596 0 0 0 0 264,560 30,878 0 174,845 0 0 174,845 225,420 0 0 0 0 8,521 7,710 I 0 124,926 0 0 131,368 130,157 0 0 0 0 124,373 137,676 0 5,023,920 1,098,083 0 6,122,003 4,700,900 I 0 0 0 817,661 817,661 371,218 0 0 0 5,087,816 5,087,816 3,078,782 I $ 2,607,526 $ 6,164,270 $ 1,098,083 $ 5,905,477 $ 23,092,481 $ 16,016,218 I $ 1,860,305 $ 123,980 $ 0 $ 0 $ 2,171,055 $ 1,365,961 65,914 4,917 0 0 648,520 533,942 I 217,505 0 0 0 217,505 271,273 0 0 0 0 9,856 6,271 0 231,940 0 0 254,526 0 I 12,000 0 0 0 1,554,204 2,000,079 0 0 0 5,810,000 5,810,000 3,450,000 0 1,111,623 0 0 1,111,623 1,173,113 0 0 0 95,477 95,477 0 I 2,155,724 1,472,460 0 5,905,477 11,872,766 8,800,639 0 0 1,098,083 0 1,098,083 962,893 I 0 3,752,497 0 0 3,752,497 2,353,519 0 0 0 0 0 97,894 I 0 939,313 0 0 939,313 487,361 0 0 0 0 851,110 436,948 I 1,557,346 0 0 0 2,642,125 1,377,588 (1,105,544) 0 0 0 1,936,587 1,499,376 451,802 4,691,810 1,098,083 0 11,219,715 7,215,579 I $ 2,607,526 $ 6,164,270 $ 1,098,083 $ 5,905,477 $ 23,092,481 $ 16,016,218 I 4 CITY OF ALBERTVILLE, MINNESOTA I COMBINED STATEMENT OF REVENUES, EXPENDITURES, I AND CHANGES IN FUND BALANCE - ALL GOVERNMENTAL FUND TYPES Year Ended December 31, 2000 Governmental Fund Types I SpecIal Debt General Revenue ServIce I REVENUES Taxes $ 673,683 $ 0 $ 216,175 SpecIal Assessments 0 0 534,237 LIcenses and PermIts 166,352 0 0 I Intergovernmental Revenues 258,476 7,529 0 Charges for ServIces 71,521 929,795 9,908 FInes 0 0 0 I MIscellaneous Revenues 24,591 198,775 46,639 Total Revenues 1,194,623 1,136,099 806,959 EXPENDITURES I Current - General Government 480,339 0 0 PublIc Safety 219,975 0 0 I PublIc Works 369,387 0 0 SamtatIon 22,861 0 0 Culture and RecreatIon 110,432 23,759 0 EconomIc Development 5,362 0 0 I MIscellaneous 0 153 2,629 CapItal Outlay 0 0 0 Debt ServIce - I PnncIpal 27,617 0 190,000 Interest and FIscal Charges 0 0 167,887 Total ExpendItures 1,235,973 23,912 360,516 I EXCESS OF REVENUES OVER (UNDER) EXPENDITURES (41,350) 1,112,187 446,443 OTHER FINANCING SOURCES (USES) I Sale of General FIxed Assets 3,056 0 0 CapItal Lease Proceeds 123,094 0 0 I OperatIng Transfers In 144,996 0 0 OperatIng Transfers Out 0 (144,996) 0 Bond Proceeds 0 0 0 Total Other FInanCIng Sources (Uses) 271,146 (144,996) 0 I EXCESS OF REVENUES AND OTHER FINANCING SOURCES OVER (UNDER) I EXPENDITURES AND OTHER FINANCING USES 229,796 967,191 446,443 FUND BALANCE - January 1, (as prevIOusly stated) 389,362 2,574,010 371,218 I PRIOR PERIOD ADmSTMENT 0 0 0 FUND BALANCE - January 1, (as restated) 389,362 2,574,010 371,218 I RESIDUAL EQUITY TRANSFER 0 0 0 FUND BALANCE - December 31 $ 619,158 $ 3,541,201 $ 817,661 I The notes to the finanCIal statements are an mtegra1 part of thIS statement I I I I Totals CapItal (Memorandum Only) I Projects 2000 1999 $ 68,792 $ 958,650 $ 763,388 3,120 537,357 160,254 I 0 166,352 121,839 0 266,005 329,773 13,250 1,024,474 707,925 I 0 0 152 45,134 315,139 369,237 130,296 3,267,977 2,452,568 I 0 480,339 249,895 I 0 219,975 343,922 0 369,387 188,412 0 22,861 18,573 0 134,191 252,807 I 0 5,362 75,924 41,246 44,028 91,349 2,166,570 2,166,570 2,638,914 I 0 217,617 265,000 0 167,887 56,793 I 2,207,816 3,828,217 4,181,589 (2,077,520) (560,240) (1,729,021) I 0 3,056 501 I 0 123,094 0 0 144,996 0 0 (144,996) 0 2,550,000 2,550,000 2,595,387 I 2,550,000 2,676,150 2,595,888 I 472,480 2,115,910 866,867 (20,678) 3,313,912 2,815,847 ~ I 0 0 (200,334) I (20,678) 3,313,912 2,615,513 0 0 (168,468) I $ 451 ,802 $ 5,429,822 $ 3,313,912 5 I CITY OF ALBERTVILLE, MINNESOTA COMBINED STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE - BUDGET AND ACTUAL - GENERAL AND SPECIAL REVENUE FUND TYPES Year Ended December 31, 2000 Budget REVENUES Taxes LIcenses and PermIts Intergovernmental Revenues Charges for ServIces FInes MIscellaneous Revenues Total Revenues $ 669,611 82,750 247,323 48,440 100 25,950 1,074,114 EXPENDITURES Current - General Government PublIc Safety PublIc Works SamtatIon Culture and RecreatIon EconomIc Development MIscellaneous Debt ServIce - PnncIpal Total ExpendItures 264,595 261,147 273,622 20,540 135,170 5,300 o o 960,374 EXCESS OF REVENUES OVER (UNDER) EXPENDITURES OTHER FINANCING SOURCES (USES) Sale of General FIxed Assets CapItal Lease Proceeds OperatIng Transfers Out OperatIng Transfers In Total Other FInanCIng Sources (Uses) 113,800 EXCESS OF REVENUES AND OTHER FINANCING SOURCES OVER (UNDER) EXPENDITURES AND OTHER FINANCING USES $ 113,800 FUND BALANCE - January 1 FUND BALANCE - December 31 The notes to the financIal statements are an Integral part of thIS statement General Fund Actual $ 673,683 166,352 258,476 71,521 o 24,591 1,194,623 480,339 219,975 369,387 22,861 110,432 5,362 o 27,617 1,235,9~ (41,350) o o o o o 3,056 123,094 o 144,996 271,146 229,796 389,362 $ 619,158 Over (Under) Budget I I I I I I I I I I I I I I I I I I I $ 4,072 83,602 11,153 23,081 (100) (1,359) 120,449 215,744 (41,172) 95,765 2,321 (24,738) 62 o 27,617 275,599 (155,150) 3,056 123,094 o 144,996 271,146 $ 115,996 I CITY OF ALBERTVILLE, MINNESOTA I COMBINED STATEMENT OF REVENUES, EXPENSES AND CHANGES IN RETAINED EARNINGS - ALL PROPRIETARY FUND TYPES Year Ended December 31, 2000 I WIth Comparative Totals for the Year Ended December 31, 1999 Totals I 2000 1999 OPERATING REVENUES I Charges for ServIces $ 486,580 $ 331,687 Water Trunk Fees 77,055 0 Water AvaIlabIlIty Charges 84,000 36,431 I Penalties 7,535 17,448 Total OperatIng Revenues 655,170 385,566 OPERATING EXPENSES I Salanes and Benefits 55,507 1,642 RepaIrs and MaIntenance 13,538 18,060 I EngIneer Fees 0 9,915 Legal Fees 0 165 SupplIes 62,296 7,319 ProfeSSIOnal ServIces 35,026 103,775 I Insurance 8,368 3,944 UtilIties 19,047 0 DepreCIation 92,374 77,542 I MIscellaneous 496 498 Total OperatIng Expenses 286,652 222,860 OPERATING INCOME 368,518 162,706 I NON-OPERATING REVENUES (EXPENSES) I Water Meter Sales 15,155 21,052 Interest Income 22,144 15,034 Interest Expense and FIscal Charges (38,441) (40,371) I Water Meter Purchases (13,318) (7,164) Total Non-OperatIng Revenues (Expenses) (14,460) (11,449) NET INCOME 354,058 151,257 I RETAINED EARNINGS - January 1 585,255 265,530 RESIDUAL EQUITY TRANSFER 0 168,468 I RETAINED EARNINGS - December 31 $ 939,313 $ 585,255 I I The notes to the finanCIal statements are an Integral part OfthIS statement I 7 I I I CITY OF ALBERTVILLE, MINNESOTA COMBINED STATEMENT OF CASH FLOWS - ALL PROPRffiTARY FUND TYPES I Year Ended December 31,2000 WIth ComparatIve Totals for the Year Ended December 31, 1999 I Totals 2000 1999 I CASH FLOWS FROM OPERATING ACTIVITIES Operatmg Income $ 368,518 $ 162,706 Adjustments to ReconcIle Operatmg Income to I Net Cash ProvIded by Operatmg ActIvItIes DepreCIatIOn 92,374 77,542 Change m Assets and LIabIlItIes I (Increase) Decrease m Accounts ReceIvable (109,928) 26,503 (Increase) Decrease m Due from Other Governments 4,238 (45,831) Increase m Accounts Payable (29,622) 24,760 Increase m Due to Other Governments 231,940 0 I Total Adjustments 189,002 82,974 Net Cash ProvIded by Operatmg ActIvItIes 557,520 245,680 I CASH FLOWS FROM NONCAPIT AL FINANCING ACTIVITIES ResIdual EqUIty Transfers In 0 168,468 I CASH FLOWS FROM CAPITAL AND RELATED FINANCING ACTIVITIES I PnncIpal Payments on Bonds (61,490) (59,559) Interest and FIscal Charges PaId on Bonds (38,441) (40,371) Proceeds from Sales of Water Meters 15,155 21,052 I AcqulSltIon of Water Meters (13,318) (7,164) AcqUISItIon of FIxed Assets 20,691 (220,187) Net Cash (Used) by CapItal and Related Fmancmg ActIVItIes (77,403) (306,229) I CASH FLOWS FROM INVESTING ACTIVITIES Investment Income ReceIved 22,144 15,034 I Net Increase m Cash and Cash EqUIvalents 502,261 122,953 Cash and Cash EqUIvalents, January 1 214,338 91,385 I Cash and Cash EqUIvalents, December 31 $ 716,599 $ 214,338 I I I The notes to the finanCIal statements are an mtegral part of thIS statement 8 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, 2000 NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES The CIty of AlbertvIlle, Mmnesota, has a mayor-councIl fornl of government A mayor and four councIl members are elected by the voters ofthe CIty for two-year and four-year terms, respectIvely The accountmg polIcIes ofthe CIty conform to accountmg pnncIples generally accepted m the Umted States of Amenca 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 applIed all applIcable Governmental Accountmg Standards Board (GASB) pronouncements as well as FmancIal Accountmg Standards Board (FASB) pronouncements, Accountmg PnncIples Board (APB) OpImons, Issued on or before November 30, 1989 unless those pronouncements conflIct WIth or contradIct GASB pronouncements A FmancIaI Reportmg EntIty The financIal statements present the CIty and Its component unIts The CIty mcludes all funds, account groups, organIzatIOns, mstItutIOns, agencIes, departments, and offices that are not legally separate from such Component umts are legally separate organIzatIOns 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 orgamzatIon, 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 umt defimtIon cntena above, certam organIzatIOns are presented m thIS report as follows · Blended Component Umts - Reported as If they were part of the CIty · DIscretely Presented Components Umts - EntaIls reportmg the component unIt financIal data m a column separate from the financIal data ofthe 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, 2000 NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Contmued) A FmancIaI Reportmg EntIty (Contmued) · Related OrganIzatIOn - The relatIonshIp of the CIty WIth entIty IS dIsclosed · Jomt Ventures and Jomtlv Governed OrganIzatIons - The relatIOnshIp ofthe 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 OrganIzatIOn None Jomt Ventures and Jomtly Governed OrganIzatIOns Jomt Powers Board Water Fund In 1977 the CIty of AlbertvIlle entered mto an agreement WIth the CItIes of St MIchael and Hanover and Frankfort TownshIP to construct a water system under a grant bond arrangement WIth the Umted States EconomIC Development AdmmIstratIOn (EDA) Water revenue bonds were Issued m the name ofthe CIty of AlbertvIlle and purchased by EDA The Jomt Powers Board remIts the annual bond and mterest payment to the CIty of AlbertvIlle whIch m turn remIts the payment to EDA The Jomt powers agreement states m the event the Jomt Powers Board Water Fund does not generate suffiCIent revenue to pay operatmg costs and pnncIpal 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 ofSt 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 ofthe Jomt Powers Board 10 11 I I I I I I I I I I I I I I I II I I I CITY OF ALBERTVILLE, MINNESOTA NOTES TO THE FINANCIAL STATEMENTS Year Ended December 31, 2000 NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Contmued) A FmancIaI Reportmg Entity (Contmued) Jomt Ventures and Jomtly Governed OrganIzations (Contmued) Jomt Powers Board Water Fund (Contmued) A summary ofthe financIal mformatIOn ofthe Jomt Powers Board Water Fund for the year ended December 31, 1999 (2000 mformatIOn IS not avaIlable) IS Total LIabIlIties and EqUIty $ 11,001,738 $ 7,653,778 3,347,960 $ 11,001,738 Total Assets Total LiabIlIties Total EqUIty Total Revenues Operatmg Expenses Other Income and Expenses $ 436,333 533,581 460,065 Net Income $ 362,817 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 a Jomt powers agreement wIth the CIty of St MIchael and Independent School DIStrICt # 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 ofthe 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 ofthe 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-thud of any projected shortfall m annual revenues aVailable for the operatIOn and mamtenance of the Ice arena 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, 2000 NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Contmued) A FmancIaI Reportmg EntIty (Contmued) Jomt Ventures and Jomtly Governed OrganIzatIOns (Contmued) St Mlchael- AlbertvIlle Ice Arena (Contmued) Dunng 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 2000 and 1999, the CIty dId not make any contnbutIOns nor receIve any payments on the loan A summary of the finanCIal mformatIon of the STMA Arena for the year ended June 30, 1999 (2000 mformatIon IS not avaIlable) 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 orgarnzed on the baSIS of funds and account groups, each of whIch IS consIdered a separate accountmg entIty The operatIOns of each fund are accounted for WIth a separate set of self-balancmg accounts that compnse ItS assets, lIabIlItIes, fund eqUity, revenues and expendItures or expenses, as appropnate Government resources are allocated and accounted for m mdlvldual funds based upon the purposes for whIch they are to be spent and the means by WhICh spendmg actIVItIes are controlled The VarIOUS funds are grouped, m the financIal statements m thIS report, mto five genenc fund types and two broad fund categones, descnbed below 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, 2000 NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Contmued) B Fund Accountmg (Contmued) 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 restrIcted to expendItures for speCIfied purposes Debt ServIce Funds are used to account for the accumulatIOn of resources for, and the payment of pnncIpal, mterest, and related costs of general long-term debt CapItal Prolects Funds are used to account for financIal resources to be used for the acqUISItIon or constructIOn of major capItal facIlItIes (other than those financed by propnetary funds) Propnetarv Funds Enterpnse Funds are used to account for operatIons (a) that are financed and operated m a manner SImIlar to pnvate busmess enterpnses--where the mtent of the governmg body IS that the costs (expenses, mcludmg depreCIatIOn) of provIdmg goods or servIces to the general publIc on a contmumg baSIS be financed or recovered pnmanly through user charges, or (b) where the governmg body has decIded that the penodIc determmatIOn of revenues earned, expenses mcurred, or net mcome IS appropnate for capItal mamtenance, publIc polIcy, management control, accountabIlIty, or other purposes The CIty mamtams sanItary 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 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, 2000 NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Contmued) C Measurement Focus. FIxed Assets and Long-Term LiabIlIties The accountmg and reportmg treatment applIed to the fixed assets and long-term lIabIlIties assocIated wIth a fund are determmed by ItS measurement focus All governmental funds are accounted for on a spendmg or "financIal flow" measurement focus ThIS means that only current assets and current lIabIlIties are generally mcluded on theIr balance sheets TheIr reported fund balance (net current assets) IS consIdered a measure of aVailable spendable resources Governmental fund operatmg statements present mcreases (revenues and other financmg sources) and decreases (expendItures and other financmg uses) m net current assets Accordmgly, they are saId to present a summary of sources and uses of aVailable spendable resources dunng a penod FIxed assets used m governmental fund type operatIOns (general fixed assets) are accounted for m the General FIxed Assets Account Group, rather than m governmental funds PublIc domam ("mfrastructure") general fixed assets--wmch are certam Improvements other than bUIldmgs, mcludmg roads, curbs and gutters, streets and sIdewalks, dramage systems, and IIghtmg systems--are not capItalIzed by the CIty No deprecIation has been provIded on general fixed assets All fixed assets are valued at theIr hIstoncal cost or estimated hIstoncal cost If actual cost IS not aVailable Donated fixed assets are valued at theIr estimated fair value on the date donated Because of theIr spendmg measurement focus, expendIture recogmtIon for governmental fund types IS lImIted to exclude amounts represented by noncurrent lIabIlIties Smce they do not affect net current assets, such long-term amounts are not recogmzed as governmental fund type expendItures or fund lIabIlIties They are mstead reported as lIabIlIties m the General Long-Term Debt Account Group 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 ThIS means that all assets and all lIabIlIties (whether current or noncurrent) assocIated WIth the fund's actIVIty are mcluded on the balance sheet TheIr reported fund eqUity (net total assets) IS segregated mto contnbuted capItal and retamed earnmgs components Propnetary fund type operatmg statements present mcreases (revenues) and decreases (expenses) m net total assets DepreCiatIOn of all exhaustible fixed assets used by propnetary funds IS charged as an expense agamst operatIOns Accumulated depreCIation IS reported on the propnetary fund balance sheet DepreCIatIOn has been proVIded over the assets' estimated useful lIves usmg the straIght-Ime method The estimated useful lIves of the fixed assets range from five to fifty years 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, 2000 NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Contmued) D BasIs of Accountmg BaSIS of accountmg refers to when revenues and expendItures or expenses are recognIzed m the accounts and reported m the financIal statements B~IS of accountmg relates to the tImmg of the measurement made, regardless ofthe measurement focus applIed All governmental funds are accounted for usmg the modIfied accrual baSIS of accountmg, m whIch revenues are recognIzed when they become measurable and aVaIlable as net current assets The CIty conSIders property taxes as avaIlable If they are collected wlthm 60 days after year end A one-year avaIlabIlIty penod IS used for revenue recognItIon for all other governmental fund revenues ExpendItures are recorded when the related fund lIabIlIty IS mcurred 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 delmquencles The CIty reports deferred revenue on the combmed balance sheet Deferred revenues anse when a potentIal revenue does not meet both the "measurdble" and "aVaIlable" cntena for recognItIon m the current penod Deferred revenues also anse when resources are receIved by the CIty before It has a legal claIm to them, or when grant momes are receIved pnor to the mcurrence of 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 pnnclpal and mterest on general long-term debt, whIch are recognIzed when due All propnetary funds are accounted for usmg the accrual baSIS of accountmg, revenues are recognIzed when they are earned and expenses are recognIzed when they are mcurred 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, 2000 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 establIshIng the budgetary data reflected m the financIal statements 1 Budget requests are submItted by all department heads to the CIty Admlmstrator The CIty Admmlstrator complIes the budget requests mto an overall prelImmary CIty budget 2 The CIty Admlmstrator 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 2000 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 prOVlSlons 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 accountmg pnnclples generally accepted m the Umted States of Amenca AImual 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 31,2000, no outstandmg encumbrances eXIsted G Cash and Investments (lnc1udmg Cash EQUIValents) (See Note 3) Cash balances from all funds are combmed and mvested to the extent aVailable m authonzed mvestments Earmngs from such mvestments are allocatee:. to the respective funds on the baSIS of applIcable cash balance partIcIpation by each fund Investments that have a remammg matunty of one year or less at the time of purchase are stated at amortIzed cost Long-term mvestments are those that have a remammg matunty of over one year at the tIme of purchase and are stated at fair value 16 17 I I I I I I I I I I I I I I I I I I I CITY OF ALBERTVILLE, MINNESOTA NOTES TO THE FINANCIAL STATEMENTS Year Ended December 31,2000 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 of propnetary fund types, cash eqUIvalents are defined as short-term, lughly lIqUId mvestments that are both a readIly convertIble to known amounts of cash, or b so near theIr matunty that they present mSIgnIficant nsk of changes m value because of changes m mterest rates The CIty'S polIcy consIders cash eqUIvalents to be those that meet the above cntena and have ongmal matuntIes of three months or less H Taxes ReceIvable Delmquent taxes receIvable represent the past SIX years of uncollected tax levIes I SpecIal Assessments ReceIvable Delmquent specIal assessments represent the past SIX years of uncollected specIal assessments Deferred specIal assessments represent the pnncIpal portIOn of those assessments to property owners for Improvements made by the CIty and are to be paId m 2001 and years thereafter J Loans ReceIvable Loans receIvable represent loans made to local busmesses for the purpose of economIC development K Deferred Revenue Deferred revenue represents delInquent taxes, delmquent and deferred assessments receIvable, and loans receIvable ThIS revenue IS deferred untIl It IS measurable and aVaIlable as net current assets 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, 2000 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 maxrmum 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 begmmng 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 pen ods - Fund balance accounts are subdIVIded as follows Reserved accounts represent those portIOns of fund eqUIty not appropnable for expendIture or legally separated for a future use Unreserved, deSIgnated accounts mdIcate the portIon of fund balance whIch has been deSIgnated for a speCIfic purpose The unreserved, undesIgnated account IS the portIOn of fund balance WhICh IS aVaIlable for budgetmg and expendmg m future pen ods 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, 2000 NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (ContInued) N Revenues. ExpendItures and Expenses 1 Revenues Property taxes and specIal assessment pnncIpal and Interest are recognIzed as revenue when measurable and avaIlable Intergovernmental revenues are reported under the legal and contractual reqUIrements of the IndIVIdual programs LIcenses and permIts, charges for servIces, fines and forfeItures, and mIscellaneous revenues (except Investment earnIngs) are recorded as revenues when measurable and aVailable Investment earnIngs are recorded when earned because they are measurable and aVailable 2 Property Tax CollectIOn Calendar The CIty leVIes Its property tax for the subsequent year dunng the month of December The property tax IS recorded as revenue when It becomes measurable and aVailable Wnght County IS the collectIng agency for the levy and remIts the collections to the CIty three times a year Taxes not collected as of December 31 each year are shown as delInquent taxes receIvable December 28 IS the last day the City can certIfy a tax levy to the County AudItor for collection the follOWIng year Such taxes become a lIen on the follOWIng January 1 The County AudItor prepares the tax lIst for all taxable property In the CIty, applymg the applIcable tax rate to the tax capaCIty of IndIVIdual propertIes, to amve at the actual tax for each property The County AudItor also collects all speCIal assessments, except for certaIn prepayments paid dIrectly to the City The County AudItor submIts a lIst oftaxes to be collected on each parcel of property to the County Treasurer In January of each year The County Treasurer collects all taxes and IS requlled 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 reqUIred to pay one-half oftheIr 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 FrnANCIAL STATEMENTS Year Ended December 31, 2000 NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTrnG POLICIES (Contmued) N Revenues, ExpendItures and Expenses (Contmued) 2 Property Tax CollectIon Calendar (Contmued) Iftaxes due May 15 are not paId on tIme, a penalty of3% IS assessed on homesteaded property and 7% on non-homesteaded property An addItIonal 1 % penalty IS added each month the taxes remam unpaId, untIl October 15 If the taxes due May 15 are not paId by October 15, a 2% penalty per month IS added to homesteaded property and 4% per month to non-homesteaded property untIl January 1 If the taxes are not paId by January 1, further penaltIes are added PenaltIes and mterest apply to both taxes and speCIal assessments There are some exceptIons to the above penaltIes, but they are not matenal 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, 2000 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 ACCOUNT ABILITY A Fund Balance DeficIts The folloWing funds had deficIt fund balances at December 31, 2000 SpecIal Revenue Fund - CMIF Debt ServIce Funds - 1988 Refundmg Bonds 1996A G 0 TIF Bonds CapItal Projects Funds - TIF #6 - Fraser Steel TIF #10 - Mold-Tech TIF #11 - Land of Lakes TIle Barthel IndustrIal Dnve & 52nd Street North Frontage Road Summerfield AddItion NE Sewer and Water ExtenSIOn CSAH 19/37 IntersectIOn ParksIde 3rd AddItion ParksIde 4th AddItion Cottages of AlbertvIlle TIF # 7 $ 2,816 157,317 26,547 25 9,236 18,055 40,235 964 22,350 9,136 20,393 18,264 30,619 29,157 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, 2000 NOTE 2 - STEWARDSHIP. COMPLIANCE AND ACCOUNTABILITY (Contmued) A Fund Balance DeficIts (Contmued) CapItal Projects Funds - (Contmued) Cedar Creek IndustrIal Park Cedar Creek North Center Oaks 1st AddItIon ParksIde CommercIal Park Barthel Bus Garage TIF # 9 Karston Cove Psyk's 7th AddItIon AlbertVIlle Crossmgs FIfe Hall 57th Street Improvement CSAH 19 Improvement AlbertvIlle VIllas Mooney AddItIon Traffic LIght KollevIlle Estates SW LIft StatIOn Towne Lakes $ 2,768 101,544 116,606 4,922 5,958 18,862 23,407 1,858 15,501 133,321 47,282 107,130 7,477 141,101 22,981 144,111 12,281 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, 2000 ExpendItures AppropnatIOns General Fund SpeCIal Revenue Funds Park Fund CMIF Fund $ 1,235,973 23,759 153 $ 960,374 o o 22 Category Bank Carrymg 1 2 3 Balance Amount CertIficates of DeposIt $ 686,093 $ 0 $ 0 $ 686,093 $ 686,093 Bank Accounts 2,747,500 0 90,216 2,837,716 2,731,934 Total DeposIts $ 3,433,593 $ 0 $ 90,216 $ 3,523,809 $ 3,418,027 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, 2000 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 VarIOUS mvestments authonzed by Mznnesota Statutes Each fund's portIOn of thIS pool (or pools) IS dIsplayed on the financIal statements as "cash and mvestments (mcludmg cash eqUIvalents)" For purposes of IdentIfymg nsk of mvestmg publIc funds, the balances and related restnctIOns are summanzed below a DeposIts - Mznnesota Statutes reqUIre that all deposIts wIth finanCIal mstItutIons must be collateralIzed m an amount equal to 110% of deposIts m excess of Federal DeposItory Insurance CorporatIOn (FDIC) msurance Category 1 - DeposIts collateralIzed by FDIC and those deposIts collateralIzed WIth secuntIes held by the CIty or by ItS agent m the CIty'S name Category 2 - CollateralIzed wIth secuntIes held by the pledgmg financmg mstItutIOn's trust department or agent m the CIty'S name Category 3 - UncollateralIzed, mcludmg amounts WhICh are collateralIzed 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 collateralIzed but collateral not perfected b Investments - Mznnesota Statutes authonze the CIty to mvest m oblIgatIOns of the U S Treasury, agencIes and mstrumentalItIes, shares of mvestment compames whose only mvestments are m the forementIOned secuntIes, oblIgatIons of the State of Mmnesota or ItS mumcIpalItIes, bankers' acceptances, future contracts, repurchase and reverse repurchase agreements, and commercIal paper of the hIghest qualIty WIth a 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, 2000 NOTE 3 - DETAILED NOTES ON ALL FUNDS AND ACCOUNT GROUPS (Contmued) A Assets (Contmued) 1 Cash and Investments (Includmg Cash EQmvalents) (Contmued) b Investments - (Contmued) Category 2 - Umnsured and unregIstered, wIth secuntIes held by the counterparty's trust department or agent m the CIty'S name Category 3 - Umnsured and unregIstered, wIth secuntIes held by the counterparty, or by ItS trust department or agent but not m the CIty'S name U S Government SecuntIes $ 338,884 $ 0 Mortgage Pools 706,675 0 NegotIable CD's 486,611 0 Commercial Paper 971,778 0 Money Market Account 200,379 0 Broker Cash 242 0 Total $ 2,704,569 $ 0 Cash m Trust Restncted Cash m Trust Total DeposIts (Note 3 A 1 a) Petty Cash Total Cash and Investments (Includmg Cash Eqmvalents) Carrymg Amount! Falr 3 Value $ 0 $ 338,884 0 706,675 0 486,611 0 971,778 0 200,379 0 242 $ 0 2,704,569 820,314 82,027 3,418,027 71 $ 7,025,008 Category 1 2 ThIS amount IS classIfied on the combmed balance sheet as follows Cash and Investments (Includmg Cash Eqmvalents) Cash m Trust Restncted Cash m Trust Cash Overdraft Total $ 8,293,722 820,314 82,027 (2,171,055) $ 7,025,008 For the year ended December 31, 2000, mvestment revenue was $ 302,150 24 CITY OF ALBERTVILLE, MINNESOTA NOTES TO THE FINANCIAL STATEMENTS Year Ended December 31,2000 NOTE 3 - DETAILED NOTES ON ALL FUNDS AND ACCOUNT GROUPS (ContInued) A Assets (ContInued) 2 Due From Other Governmental Vmts The folloWIng IS a summary of due from other governmental umts at December 31, 2000 Ice Arena Wnght Jomt Fund County Powers Total General $ 4,487 $ 0 $ 4,487 Debt ServIce 1,955 0 1,955 Enterpnse 41,593 83,333 124,926 Total $ 48,035 $ 83,333 $ 131 ,368 3 Notes ReceIvable The notes receIvable In the RevolVIng Loan SpecIal Revenue Fund represent loans to area busmesses for the purpose of economIC development The notes are due m monthly Installments through Apn12010, Interest at 1 00 to 7 00 percent per annum The balances at December 31,2000 totaled $ 124,373 4 FIxed Assets The follOWIng IS a summary of changes In general fixed assets (unaudIted) Balance Balance 1-1-00 AddItIons DIsposals 12-31-00 Land $ 35,566 $ 0 $ 0 $ 35,566 BUIldmgs 113,409 6,809 0 120,218 Improvements Other than BUIldmgs 78,169 0 0 78,169 MachInery and EqUIpment 735,749 128,381 0 864,130 Total $ 962,893 $ 135,190 $ 0 $ 1 ,098,083 25 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, 2000 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, 2000 IS as follows SanItary 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 Eqmpment 100,143 13,532 113,675 ConstructIOn m Progress 1,569,248 41,220 1,610,468 Total FIxed Assets 5,600,768 351,015 5,951,783 Less Accumulated DepreCiation (918,201) (9,662) (927,863) Net FIxed Assets $ 4,682,567 $ 341,353 $ 5,023,920 B LIabIhtIes 1 Defined Benefit PensIOn Plans - StatewIde a Plan DescnptIon All full-time and certam part-time employees of the CIty of AlbertvIlle, are covered by defined benefit plans admmIstered by the Pubhc Employees Retirement ASSOCiation ofMmnesota (PERA) PERA admInIsters the Pubhc Employees RetIrement Fund (PERF) WhICh IS a cost-shanng, multiple-employer retirement plan ThIS plan IS estabhshed and admmIstered m accordance WIth Mznnesota 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 II CITY OF ALBERTVILLE, MINNESOTA NOTES TO THE FINANCIAL STATEMENTS Year Ended December 31, 2000 NOTE 3 - DETAILED NOTES ON ALL FUNDS AND ACCOUNT GROUPS (ContInued) B LIabIlItIes (ContInued) 1 Defined Benefit PenSIOn Plans - StateWIde (ContInued) 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 CoordInated and BaSIC Plan members The retmng member receIves the hIgher of a step-rate benefit accrual formula (Method 1) or a level accrual formula (Method 2) Under Method 1, the annUIty accrual rate for a BaSIC Plan member IS 2 2 percent of average salary for each of the first 10 years of servIce and 2 7 percent for each remaInmg 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 remaInIng year Under Method 2, the annUIty accrual rate IS 2 7 percent of average salary for BaSIC Plan members and 1 7 percent for CoordInated Plan members for each year of servIce For PERF members whose annUIty IS calculated USIng 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 seekIng early retIrement There are dIfferent types of annUItIes avaIlable to members upon retIrement A normal annUIty IS a lIfetIme annUIty that ceases upon the death of the retIree--no survIvor annUIty IS payable There are also VarIOUS types of Jomt and survIvor annUIty optIons aVaIlable whIch WIll reduce the monthly normal annUIty amount, because the annUIty IS payable over Jomt hves Members may also leave theIr contnbutIons m the fund upon termmatIOn of publIc servIce m order to quahfy for a deferred annUIty at retIrement age Refunds of contrIbutIons are aVaIlable at any tIme to members who leave pubhc 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, 2000 NOTE 3 - DETAILED NOTES ON ALL FUNDS AND ACCOUNT GROUPS (Contmued) B LIabIlIties (Contmued) 1 Defined Benefit PensIon Plans - StatewIde (Contmued) a Plan DescnptIon (Contmued) The benefit proVIsIOns stated m the prevIous paragraphs of thIS sectIon are current proVIsIons and apply to active plan partIcIpants Vested, termmated employees who are entitled to benefits but are not receIvmg them yet are bound by the provlSlons 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, MInnesota, 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, oftheIr annual covered salary The City of AlbertvIlle IS reqUIred to contnbute the followmg percentages of annual covered payroll 11 43 percent for BaSIC Plan PERF members and 5 18 percent for Coordmated Plan PERF members The CIty'S contnbutIOns to the PublIc Employees RetIrement Fund for the years endmg December 31, 2000, 1999, and 1998 were $ 17,868, $ 6,649, and $ 4,905, 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 - Delmquent $ 19,369 $ 0 $ 2,875 $ 0 $ 22,244 SpecIal Assessments ReceIvable - Deferred 0 0 1,131,027 12,000 1,143,027 Delmquent 0 0 264,560 0 264,560 Loans ReceIvable 0 124,373 0 0 124,373 Total $ 19,369 $ 124,373 $ 1,398,462 $ 12,000 $ 1 ,554,204 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, 2000 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, 2000 General OblIgatIon General SpecIal Tax CapItal OblIgatIon Revenue Assessment Increment Lease Total Balance - January I $ 100,000 $ 2,033,113 $ 2,235,000 $ 255,000 $ 0 $ 4,623,113 AddItIons 0 2,550,000 0 0 123,094 2,673,094 RetIrements (20,000) (61,490) (140,000) (30,000) (27,617) (279,107) Balance - December 31 $ 80,000 $ 4,521,623 $ 2,095,000 $ 225,000 $ 95,477 $ 7,017,100 Outstandmg December 31,2000 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 3 00 to 5 00 percent $ 80,000 Revenue Bonds $ 1,454,514 General OblIgatIon Revenue Notes - PF A, due to MInnesota PublIc FacIlItIes Authonty m semI-annual mstallments of$ 19,707 to $ 49,965 through August 20,2014, mterest at 332 percent $ 1,111,623 $ 860,000 PublIc FacIltIy 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 860,000 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, 2000 NOTE 3 - DETAILED NOTES ON ALL FUNDS AND ACCOUNT GROUPS (Contmued) B LIabIlItIes (Contmued) 3 Long-Term Debt (Contmued) Revenue Bonds (Contmued) $ 2,550,000 General OblIgatIOn Sewer Revenue Bonds, Senes 2000A, due m annual mstallments of $ 50,000 to $ 365,000 through February 1,2016, mterest at 450 to 5 25 percent Outstandmg December 31,2000 Total Revenue Bonds $ $ 2,550,000 4,521,623 General OblIgatIOn SpecIal Assessment Bonds $ 215,000 Refundmg Bonds of 1989, due m annual mstallments of$ 5,000 to $ 25,000 through September 1, 2003, mterest at 700 to 7 75 percent $ 40,000 $ 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 15,000 $ 350,000 General OblIgatIOn Improvement Bonds, Senes 1992A, due m annual mstalhnents of$ 1 '5,000 to $ 35,000 through December 30, 2004, mterest at 5 70 percent 125,000 $ 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 155,000 $ 1,760,000 General OblIgatIon Improvement Bonds, Senes I 999A, 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 1,760,000 2,095,000 $ 30 31 I I I I I I I I I I I I I I I I I I I CITY OF ALBERTVILLE, MINNESOTA NOTES TO THE FINANCIAL STATEMENTS Year Ended December 31, 2000 NOTE 3 - DETAILED NOTES ON ALL FUNDS AND ACCOUNT GROUPS (Contmued) B LiabIlItIes (Contmued) 3 Long-Term Debt (Contmued) 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 4 25 to 5 40 percent Outstandmg December 31, 2000 $ 225,000 The annual reqUirements to amortIze all bonded debt outstandmg as of December 31, 2000, mcludmg mterest payments of$ 2,070,591 are General OblIgatIon Year Endmg General SpecIal Tax December 31 OblIgatIon Revenue Assessment Increment Total 2001 $ 23,450 $ 237,050 $ 567,840 $ 40,920 $ 869,260 2002 22,490 574,984 517,175 39,420 1,154,069 2003 21,500 609,497 487,035 37,920 1,155,952 2004 20,500 626,812 183,230 36,420 866,962 2005 0 417,603 140,860 29,995 588,458 Thereafter 0 3,693,441 577,322 86,750 4,357,513 Total $ 87,940 $ 6,159,387 $ 2,473,462 $ 271,425 $ 8,992,214 4 CaPItal Lease The CIty entered mto a capItal lease agreement for the purpose of financmg a tractor/loader The lease reqUires five annual payments of $ 27,617 begInnmg November 28, 2000 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, 2000 NOTE 3 - DETAILED NOTES ON ALL FUNDS AND ACCOUNT GROUPS (Contmued) B LIabIlItIes (Contmued) 4 CapItal Lease (Contmued) MImmum future lease payments under the capItal lease wIth the present value of mlmmum lease payments as of December 31,2000 follows Year Ended December 31 2001 2002 2003 2004 Net MImmum Lease Payments Less Amount Representmg Interest Present Value ofMImmum Lease Payments $ 27,617 27,617 27,617 27,617 110,468 (14,991) $ 95,477 C Fund EqUItv Fund eqUIty balances are classIfied as follows to reflect the lImItatIons and restnctIons ofthe respectIve funds 1 Fund Balance - Fund balance IS compnsed of the followmg components SpeCIal Debt CapItal General Revenue ServIce Projects Total Reserved - Reserved for Debt ServIce $ 0 $ 0 $ 851,110 $ 0 $ 851,110 Umeserved - DeSIgnated for Operatmg CapItal 700,000 0 0 0 700,000 DeSIgnated for Debt ServIce 0 0 150,415 0 150,415 DeSIgnated for CapItal Outlay 0 234,364 0 1,557,346 1,791,710 UndesIgnated (80,842) 3,306,837 (183,864) (1,105,544) 1,936,587 Total Fund Balance $ 619,158 $ 3,541,201 $ 817,661 $ 451,802 $ 5,429,822 32 33 I I I I I I I I I I I I I I I I I I I ' CITY OF ALBERTVILLE, MINNESOTA NOTES TO THE FINANCIAL STATEMENTS Year Ended December 31, 2000 NOTE 3 - DETAILED NOTES ON ALL FUNDS AND ACCOUNT GROUPS (Contmued) C Fund EQUIty (Contmued) 2 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 1,2000 Add Assets Contnbuted Dunng 2000 Contnbuted CapItal- December 31,2000 $ 2,353,519 1,398,978 $ 3,752,497 NOTE 4 - CONSTRUCTION COMMITMENTS The CIty has entered mto contracts for the followmg Improvement projects FundIProJect ProJ ect AuthonzatlOn Expended Through 12/31/00 CommItment Barthel Dnve Improvements CSAH 19 Improvements Southwest LIft Statton Project WWTF ExpanSIOn Project $ 133,238 354,094 127,565 2,760,900 $ 54,363 321,922 116,103 959,403 $ 78,875 32,172 11 ,462 1,801,497 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, 2000 NOTE 5 - SEGMENT INFORMATION The CIty mamtams Water, Samtary Sewer, and Storm Water Enterpnse Funds Segment mformatIon for the year ended December 31, 2000 IS as follows SanItary Water Storm Sewer Fund Water Total Operatmg Revenues $ 303,304 $ 288,890 $ 62,976 $ 655,170 DepreCIatIon 83,034 9,340 0 92,374 Operatmg Income 97,643 216,783 54,092 368,518 Net Income 48,187 241,035 64,836 354,058 Net Workmg CapItal (96,298) 494,090 318,173 715,965 Total Assets 4,777,808 1,068,197 318,265 6,164,270 Debt Outstandmg 1,111,623 0 0 1,111,623 Total EqUIty 3,538,194 835,443 318,173 4,691,810 NOTE 6 - TAX INCREMENT FINANCING The CIty of AlbertvIlle IS the admmIstenng authonty for the followmg tax mcrement financmg dIstncts Name ofDIstnct Tax Increment Fmancmg DIstnct # 7 Type ofDIstnct Authonzmg Law Housmg DIstnct Mmnesota T I F Act, Chapter 469 174, Subd 11, and 469 1761 1997 107 25 years after the date of receIpt of the first mcrement Year EstablIshed County DIstnct Number DuratIOn ofDIstnct Ongmal Tax CapacIty Current Tax CapacIty Captured Tax CapacIty - Retamed by CIty $ 878 41,105 $ 40,227 Type of Notes Issued "Pay as You Go" - The CIty pays the developer for tax mcrements receIved m the current year 34 EconomIC Development Mmnesota T I F Act, Chapter 469 174, Subd 12 1997 108 EarlIer of 9 years after the date of receIpt ofthe first mcrement, or 11 years after the date of approval of the TIF plan 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, 2000 NOTE 6 - TAX INCREMENT FINANCING (Contmued) Name ofDIstnCt Tax Increment Fmancmg DIstnCt # 8 Type ofDIstnCt 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 $ 312 7,082 6,770 $ "Pay as You Go" - The CIty pays the developer for tax mcrements receIved m the current year Name ofDIstnCt Tax Increment Fmancmg DIstnct # 9 Type ofDIstnCt Authonzmg Law Year EstablIshed 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, Subd 12 1997 EarlIer of9 years after the date of receIpt ofthe first mcrement, or 11 years after the date of approval of the TIF Plan $ 3,954 12,902 $ 8,948 "Pay as You Go" - The CIty pays the developer for tax mcrements receIved m the current year 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, 2000 NOTE 6 - TAX INCREMENT FINANCING (Contmued) Name ofDIstnCt Tax Increment Fmancmg DIstnCt # 10 Type ofDIstnCt Authonzmg Law Year EstablIshed Duration ofDIstnCt EconomIc Development Mmnesota T I F Act, Chapter 469 174, Subd 12 1998 EarlIer of9 years after the date of receIpt ofthe 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 $ 568 532 (36) $ 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 # 11 Type ofDIstnCt Authonzmg Law Year EstablIshed DuratIOn ofDIstnct EconomIC Development Mmnesota T I F Act, Chapter 469 174, Subd 12 1999 EarlIer of9 years after the date of receIpt of the first mcrement, or 11 years after the date of approval of the TIF Plan Ongmal Tax CapacIty Current Tax CapacIty Captured Tax CapacIty- Retamed by City $ o o o $ Type of Notes Issued "Pay as You Go" - The CIty pays the developer for tax mcrements receIved m the current year 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, 2000 NOTE 7 - RISK MANAGEMENT The CIty IS exposed to VarIOUS nsk of loss related to torts, theft of, damage to and destructIon of assets, errors and omISSIons, mJunes to employees, and natural dIsasters In order to protect agamst these nsks ofloss, the CIty purchases commercIal msurance through the League of MInnesota 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 MInnesota CItIes Insurance Trust IS self-sustammg through commercIal companIes for excess claIms The CIty IS covered through the pool for any claIms mcurred but unreported, however, retams nsk for the deductIble portIOn of ItS msurance polICIes The amounts ofthese deductIbles are conSIdered Immatenal to the financIal statements Dunng the year ended December 31, 2000, there were no sIgmficant reductIOns m msurance coverage from the pnor year Settled claIms 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 salarIes for the year are known The final premIUm adjustment was recorded m the year the adjustment was made NOTE 8 - 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 thIrd 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 31,2000, the followmg Issues were outstandmg Name Date ofIssue Ongmal Outstandmg Balance Amount December 31, 2000 $ 3,230,000 $ 3,230,000 85,000 65,000 425,000 425,000 Cottages of Albertvtlle - September 23, 1999 MultI Famtly Housmg Revenue Bonds, Senes 1999A Taxable MultI Fanuly Housmg Revenue Bonds, Senes 1999B Subordmated Multi Famtly Housmg Revenue Bonds, Senes 1999C 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 urnt winch 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 earmngs 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 tills 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, 2000 and 1999 ASSETS Cash and Investments Taxes ReceIvable - Delmquent Interest ReceIvable Due from Other Governmental Umts TOTAL ASSETS LIABILITIES AND FUND BALANCE LIabIlItIes Accounts Payable Accrued Payroll Taxes and Benefits Due to Other Governments Deferred Revenue Total LIabIlItIes Fund Balance Unreserved - DesIgnated for Operatmg CapItal UndesIgnated (DeficIt) Total Fund Balance TOTAL LIABILITIES AND FUND BALANCE Totals 2000 1999 $ 1,215,241 $ 830,162 19,369 18,655 8,521 7,710 4,487 823 $ 1,247,618 $ 857,350 $ 576,649 9,856 22,586 19,369 628,460 700,000 (80,842) 619,158 $ 1,247,618 $ 443,062 6,271 o 18,655 467,988 500,000 (110,638) 389,362 $ 857 ,350 38 CITY OF ALBERTVILLE, MINNESOTA GENERAL FUND STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCE- BUDGET AND ACTUAL Year Ended December 31, 2000 WIth ComparatIve Totals for the Year Ended December 31, 1999 Over (Under) 1999 Budget Actual Budget Actual REVENUES Taxes - General Property Tax $ 669,611 $ 673,683 $ 4,072 $ 576,975 Excess Tax Increments 0 0 0 7,949 Total Taxes 669,611 673,683 4,072 584,924 LIcenses and PermIts - LIquor and Beer LIcenses 13 ,400 11,400 (2,000) 11,629 BuIldmg PermIts 50,000 145,332 95,332 92,218 Busmess PermIts 15,000 6,425 (8,575) 14,887 SIgn PermIts 4,200 2,925 (1,275) 2,925 Other LIcenses 150 270 120 180 Total LIcenses and PermIts 82,750 166,352 83,602 121,839 Intergovernmental - Local Government AId 84,109 84,109 0 118,533 HACA 138,157 138,157 0 138,150 Local Performance AId 0 0 0 3,008 FIre AId 12,257 14,476 2,219 13,446 PolIce AId 7,800 6,739 (1,061) 6,810 Other State and County AIds 5,000 14,995 9,995 7,355 Total Intergovernmental Revenue 247,323 258,476 11,153 287,302 Charges for ServIces - FIre ProtectIOn Fees 43,940 48,573 4,633 24,714 SpeCIal Assessment Searches 1,000 660 (340) 1,680 Park Rental Fees 2,000 1,950 (50) 2,375 Other Charges for ServIces 1,500 20,338 18,838 17,730 Total Charges for ServIces 48,440 71,521 23,081 46,499 Fmes, ForfeItures and PenaltIes 100 0 (100) 152 MIscellaneous Revenue - InvestInentIncome 25,000 15,243 (9,757) 22,545 Lease Payments 950 2,428 1,478 950 ContrIbutIons and DonatIons 0 0 0 12,532 Other Revenues 0 6,920 6,920 24,959 Total MIscellaneous 25,950 24,591 (1,359) 60,986 TOTAL REVENUES 1,074,174 1,194,623 120,449 1,101,702 I I I I I I I I I I I I I I I I I I I 39 I I I I I I I I I I I I I I I 'I I I I CITY OF ALBERTVILLE, MINNESOTA GENERAL FUND STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCE- BUDGET AND ACTUAL Year Ended December 31, 2000 WIth ComparatIve Totals for the Year Ended December 31,1999 (Contmued) Over (Under) 1999 Budget Actual Budget Actual EXPENDITURES General Government Mayor and CouncIl - Personal ServIces $ 12,472 $ 12,487 $ 15 $ 12,254 Supphes 500 241 (259) 187 Other ServIces and Charges 20,800 14,312 (6,488~ 17,711 Total Mayor and CouncIl 33,772 27,040 (6,732 30,152 CIty Clerk-Treasurer and CIty AdmmIstrator- Personal ServIces 98,830 106,811 7,981 85,315 SupplIes 4,500 5,347 847 6,550 Other ServIces and Charges 18,800 21,264 2,464 15,803 CapItal Outlay 5,200 13,499 8,299 0 Total Clerk-Treasurer and CIty AdmImstrator 127,330 146,921 19,591 107,668 ElectIons - Other ServIces and Charges 5,000 3,631 (1,369) 0 Assessmg - 11,190 Se. Other ServIces and Charges 10,000 1,190 9,058 Legal - Other ServIces and Charges 15,000 22,889 Sc. 7,889 13,962 Engmeer - 86,042 $ c... Other ServIces and Charges 25,000 61,042 50,216 Plannmg and Zomng - Personal ServIces 17,993 1,180 (16,813) 1,284 SupplIes 700 239 (461) 170 Other ServIces and Charges 8,500 ~34,492 ~ 25,992 21,870 Total Plannmg and Zomng 27,193 35,911 8,718 23,324 General Government BuIldmgs - SupplIes 1,200 1,510 310 775 Other ServIces and Charges 16,600 17,160 560 14,576 CapItal Outlay 3,500 128,045 124,545 164 Total General Government BUIldmgs 21,300 146,715 125,415 15,515 Total General Government 264,595 480,339 215,744 249,895 40 I CITY OF ALBERTVILLE, MINNESOTA GENERAL FUND I STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCE- I BUDGET AND ACTUAL Year Ended December 31, 2000 WIth Comparattve Totals for the Year Ended December 31, 1999 (Contmued) I Over (Under) 1999 I EXPENDITURES Budget Actual Budget Actual Pubhc Safety Pohce Protectton - 111,996 ~ $...- Other ServIces and Charges $ 111 ,690 $ 306 $ 107,310 I FIre Protectton - Personal ServIces 38,957 33,095 (5,862) 29,491 I Supphes 8,300 9,385 1,085 14,292 Other ServIces and Charges 16,600 21,872 5,272 14,467 CapItal Outlay 82,600 41,719 (40,881) 175,686 Total FIre ProtectIOn 146,457 106,071 (40,386) 233,936 I Arumal Control - Other ServIces and Charges 3,000 1,908 ~C1 (1,092) 2,676 Total Pubhc Safety 261,147 219,975 (41,172) 343,922 I Pubhc Works I Streets and HIghways - Personal ServIces 51,872 52,236 364 46,603 Supphes 15,750 13,337 (2,413) 7,328 Other ServIces and Charges 35,000 29,219 sC (5,781) 29,923 I CapItal Outlay 139,000 236,203 97,203 64,543 Total Streets and HIghways 241,622 330,995 89,373 148,397 Ice and Snow Removal - I Other ServIces and Charges 0 0 0 5,796 Street LIghtmg - I Other ServIces and Charges 32,000 38,392 6,392 34,219 Total Pubhc Works 273,622 369,387 95,765 188,412 Samtatton I Recychng - Supphes 0 2,281 ~ 2,281 0 Other ServIces and Charges 20,540 20,580 40 18,573 I' Total SanItatton 20,540 22,861 2,321 18,573 Culture and Recreatton Parks - I Personal ServIces 49,720 51 ,316 1,596 45,245 SupplIes 3,100 3,233 133 2,197 Other ServIces and Charges 18,150 18,140 (10) 21,344 I CapItal Outlay 64,200 37,743 (26,457) 23,389 Total Culture and Recreatton 135,170 110,432 (24,738) 92,175 I 41 I I 1 I I I I I I I I I I I I I I I I :1 CITY OF ALBERTVILLE, MINNESOTA GENERAL FUND STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCE- BUDGET AND ACTUAL Year Ended December 31, 2000 WIth Comparattve Totals for the Year Ended December 31, 1999 (Contmued) EXPENDITURES (Contmued) EconomIc Development Suppltes Other ServIces and Charges Total EconomIc Development Over (Under) 1999 Budget Actual Budget Actual $ 200 $ 3,181 $ 2,981 $ 0 5,100 2,181 (2,919) 924 5,300 5,362 62 924 0 27,617 27,617 0 960,374 1,235,973 275,599 893,901 Debt ServIce PnncIpal TOTAL EXPENDITURES EXCESS OF REVENUES OVER (UNDER) EXPENDITURES OTHER FINANCING SOURCES Sale of General FIxed Assets CapItal Lease Proceeds Operatmg Transfer In Total Other Fmancmg Sources (Uses) 113,800 (41,350) (155,150) 207,801 0 3,056 3,056 501 0 123,094 123,094 0 0 144,996 144,996 0 0 271,146 271,146 501 EXCESS OF REVENUES AND OTHER FINANCING SOURCES OVER EXPENDITURES AND OTHER FINANCING USES $ 113,800 229,796 $ 115,996 208,302 389,362 381,394 0 (200,334) 389,362 181,060 $ 619,158 $ 389,362 FUND BALANCE, January 1 (as prevIously stated) PRIOR PERIOD ADJUSTMENT FUND BALANCE, January 1 (as restated) FUND BALANCE, December 31 42 CITY OF ALBERTVILLE, MINNESOTA SPECIAL REVENUE FUNDS COMB~GBALANCESHEET December 31, 2000 WIth ComparatIve Totals for December 31, 1999 102 I ~ 201 I , 203 CapItal Revolvmg Outlay Park Loan Reserves Fund Fund ASSETS Cash and Investments $ 234,364 $ 388,109 $ 27,559 Notes ReceIvable 0 0 124,373 TOTAL ASSETS $ 234,364 $ 388,109 $ 151,932 LIABILITIES AND FUND BALANCE Cash Overdraft $ 0 $ 0 $ 0 Accounts Payable 0 1,040 0 Deferred Revenue 0 0 124,373 Total LIabIlItIes 0 1,040 124,373 Fund Balance Unreserved - DeSIgnated for CapItal Outlay 234,364 0 0 UndesIgnated 0 387,069 27,559 Total Fund Balance (DefiCIt) 234,364 387,069 27,559 TOTAL LIABILITIES AND FUND BALANCE $ 234,364 $ 388,109 $ 151,932 I I I I I I I I I I I I I I I I I I I I I I I 204 I ~ 205 I Totals I SAC CMIF 2000 1999 $ 2,895,025 $ 0 $ 3,545,057 $ 2,576,673 I 0 0 124,373 137,676 $ 2,895,025 $ 0 $ 3,669,430 $ 2,714,349 I $ 0 $ 2,816 $ 2,816 $ 2,663 I 0 0 1,040 0 0 0 124,373 137,676 0 2,816 128,229 140,339 I I 0 0 234,364 358,717 2,895,025 (2,816) 3,306,837 2,215,293 2,895,025 (2,816) 3,541,201 2,574,010 I $ 2,895,025 $ 0 $ 3,669,430 $ 2,714,349 I I I I I I 43 I I CITY OF ALBERTVILLE, MINNESOTA I SPECIAL REVENUE FUNDS COMBINING STATEMENT OF REVENUES, EXPENDITURES I AND CHANGES IN FUND BALANCE Year Ended December 31,2000 WIth ComparatIve Totals for the Year Ended December 31, 1999 I 102 I , 201 I ~ 203 CapItal Revolvmg I Outlay Park Loan Reserves Fund Fund REVENUES I Intergovernmental Revenues - State Grants $ 0 $ 7,529 $ 0 Charges for ServIces - I Park DedIcatIon Fees 0 273,289 0 Sewer A vallabIhty Charges 0 0 0 Trunk Access Charges 0 0 0 MIscellaneous - I Investment Income 20,643 12,366 1,089 DonatIOns 0 10,000 0 Loan Repayments and Other 0 0 15,785 Total Revenues 20,643 303,184 16,874 I EXPENDITURES Culture and RecreatIon - ~c... I Plannmg Contract ServIces 0 8,851 0 ConstructIon ServIces 0 0 0 CapItal Outlay 0 14,908 0 EconomIC Development 0 0 0 I MIscellaneous - Interest 0 0 0 Total ExpendItures 0 23,759 0 I EXCESS OF REVENUES OVER (UNDER) EXPENDITURES 20,643 279,425 16,874 OTHER FINANCING SOURCES (USES) I Operatmg Transfers Out (144,996) 0 0 EXCESS OF REVENUES AND OTHER I FINANCING SOURCES OVER (UNDER) EXPENDITURES AND OTHER FINANCING USES (124,353) 279,425 16,874 FUND BALANCE (DEFICIT) - January 1 358,717 107,644 10,685 I' RESIDUAL EQUITY TRANSFER 0 0 0 FUND BALANCE (DEFICIT) - December 31 $ 234,364 $ 387,069 $ 27,559 I I I I I I I I I J 204 205 I Totals SAC CMIP 2000 1999 I $ 0 $ 0 $ 7,529 $ 42,471 I 0 0 273,289 141,306 557,040 0 557,040 477,700 99,466 0 99,466 33,570 I 138,892 0 172,990 100,823 0 0 10,000 2,500 0 0 15,785 5,769 I 795,398 0 1,136,099 804,139 I 0 0 8,851 9,787 0 0 0 83,094 0 0 14,908 67,751 I 0 0 0 75,000 0 153 153 111 I 0 153 23,912 235,743 795,398 (153) 1,112,187 568,396 I 0 0 (144,996) 0 I 795,398 (153) 967,191 568,396 I 2,099,627 (2,663) 2,574,010 2,174,082 0 0 0 (168,468) I $ 2,895,025 $ (2,816) $ 3,541,201 $ 2,574,010 I I 44 I I CITY OF ALBERTVILLE, MINNESOTA I DEBT SERVICE FUNDS COMBINING BALANCE SHEET I December 31, 2000 WIth ComparatIve Totals for December 31, 1999 I I I I I I I 300 317 318 322 I 1992 I Closed 1988 1989 Sewer Bond Refundmg Refundmg Trunk Issues Bonds Bonds Bonds ASSETS I Cash and Investments $ 150,236 $ 0 $ 41,919 $ 81,334 Cash m Trust 0 0 0 0 Restncted Cash m Trust 0 0 0 0 I Taxes ReceIvable - Delmquent 716 22 316 269 SpecIal Assessments ReceIVable - I Deferred 23,686 10,504 0 41,396 Delmquent 0 0 901 0 Due from Other Governmental Umts 179 15 88 72 TOTAL ASSETS $ 174,817 $ 10,541 $ 43 ,224 $ 123,071 I LIABILITIES AND FUND BALANCE I LIabIlItIes Cash Overdraft $ 0 $ 157,332 $ 0 $ 0 I Deferred Revenue 24,402 10,526 1,217 41,665 Total LIabIlItIes 24,402 167,858 1,217 41,665 Fund Balance I Reserved for Debt ServIce 0 0 42,007 81,406 Unreserved - DeSIgnated for Debt ServIce 150,415 0 0 0 I UndesIgnated 0 (157,317) 0 0 Total Fund Balance (DefiCIt) 150,415 (157,317) 42,007 81,406 TOTAL LIABILITIES I AND FUND BALANCE $ 174,817 $ 10,541 $ 43,224 $ 123,071 I I I I I I I I I I I ~ I I I I 323 324 341 353 354 I GO GO I 1992 1993 1999 Refundmg Improvement CIty 1996A Lease Improvement & Refundmg Hall G 0 TIF Revenue Bonds Bonds Bonds Bonds Bonds I $ 18,099 $ 174,050 $ 15,929 $ 0 $ 34,827 0 0 0 0 2,342 I 0 0 0 0 82,027 792 0 443 0 317 I 0 57,435 0 86,850 0 260 13,786 0 0 0 119 574 210 75 156 I $ 18,921 $ 245,845 $ 16,931 $ 87,242 $ 119,352 I I $ 0 $ 0 $ 0 $ 26,622 $ 0 703 71,221 792 87,167 0 703 71,221 792 113,789 0 I 18,218 174,624 16,139 0 119,352 I 0 0 0 0 0 0 0 0 (26,547) 0 18,218 174,624 16,139 (26,547) 119,352 I $ 18,921 $ 245,845 $ 16,931 $ 87 ,242 $ 119,352 I I I 45 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 COMBINING BALANCE SHEET December 31, 2000 WIth ComparatIve Totals for December 31, 1999 (Contmued) 355 ASSETS 1999A GO Improvement Totals Bonds 2000 1999 $ 398,897 $ 915,291 $ 465,849 0 2,342 2,224 0 82,027 77,904 0 2,875 3,274 911,156 1,131,027 1,795,596 249,613 264,560 30,878 467 1,955 170 $ 1,560,133 $ 2,400,077 $ 2,375,895 Cash and Investments Cash m Trust RestrIcted Cash m Trust Taxes ReceIvable - Delmquent SpeCIal Assessments ReceIvable - Deferred Delmquent Due from Other Governmental Uruts TOTAL ASSETS LIABILITIES AND FUND BALANCE LIabIlItIes Cash Overdraft Deferred Revenue Total LIabIlItIes $ 0 $ 183,954 $ 174,929 1,160,769 1,398,462 1,829,748 1,160,769 1,582,416 2,004,677 399,364 851,110 436,948 0 150,415 108,071 0 (183,864) (173,801) 399,364 817,661 371,218 $ 1,560.133 $ 2,400,077 $ 2,375,895 Fund Balance Reserved for Debt ServIce Umeserved - DesIgnated for Debt ServIce UndesIgnated Total Fund Balance (DeficIt) TOTAL LIABILITIES AND FUND BALANCE 46 I I I I 323 I I 324 I , 341 I I 353 I I 354 I GO GO I 1992 1993 1999 Refundmg Improvement CIty 1996A Lease Improvement & Refundmg Hall GO TIF Revenue Bonds Bonds Bonds Bonds Bonds I $ 14,171 $ 0 $ 25,258 $ 11,061 $ 83,062 5,636 55,473 0 23,004 0 0 0 0 0 0 I 407 7,462 0 0 4,035 20,214 62,935 25,258 34,065 87,097 I 0 0 33 2,596 0 I 15,000 60,000 20,000 30,000 0 1,237 9,846 4,936 12,645 46,762 I 16,237 69,846 24,969 45,241 46,762 3,977 (6,911) 289 (11,176) 40,335 I 0 0 0 0 0 I 3,977 (6,911 ) 289 (11,176) 40,335 I 14,241 181,535 15,850 (15,371) 79,017 $ 18,218 $ 174,624 $ 16,139 $ (26,547) $ 119,352 I I I I 47 I REVENUES General Property Taxes SpecIal Assessments Charges for ServIces MIscellaneous - Investment Income Total Revenues CITY OF ALBERTVILLE, MINNESOTA DEBT SERVICE FUNDS COMBINING STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE Year Ended December 31, 2000 WIth ComparatIve Totals for the Year Ended December 31, 1999 (Contmued) 355 1999A GO Improvement Bonds $ 41,153 412,599 9,908 10,011 473,671 EXPENDITURES MIscellaneous - Interest Debt ServIce - Bond Pnnclpal Bond Interest and FIscal Charges Total ExpendItures o o 77 ,990 77,990 EXCESS OF REVENUES OYER (UNDER) EXPENDITURES 395,681 OTHER FINANCING SOURCES (USES) Bond Proceeds o EXCESS OF REVENUES AND OTHER FINANCING SOURCES OYER (UNDER) EXPENDITURES AND OTHER FINANCING USES FUND BALANCE (DEFICIT) - January 1 FUND BALANCE (DEFICIT) - December 31 395,681 3,683 $ 399,364 $ 121,554 123,893 o I I I I I I I I I I I I I I I I I I I Totals 2000 1999 $ 216,175 534,237 9,908 46,639 806,959 2,629 190,000 167,887 360,516 446,443 446,443 371,218 $ 817,661 21,313 266,760 13,351 265,000 56,793 335,144 (68,384) o 83,093 14,709 356,509 $ 371,218 48 CITY OF ALBERTVILLE, MINNESOTA CAPITAL PROJECTS FUNDS COMBINING BALANCE SHEET December 31, 2000 With ComparatIve Totals for December 31, 1999 400 I I 406 I , 407 I I 408 I 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 $ 173,291 $ 0 $ 26,731 $ 8,132 $ 10,914 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 $ 173,291 $ 0 $ 26,731 $ 8,132 $ 10,914 LIABILITIES AND FUND BALANCE LiabIlitIes Cash Overdraft $ 0 $ 25 $ 0 $ 0 $ 0 Accounts Payable 28,537 0 0 0 0 Contracts and Retamages Payable 0 0 0 0 0 Deferred Revenue 0 0 0 0 0 Total LIabIlItIes 28,537 25 0 0 0 Fund Balance Unreserved - DeSignated for CapItal Outlay 144,754 0 26,731 8,132 10,914 Undeslgnated 0 (25) 0 0 0 Total Fund Balance (DefiCIt) 144,754 (25) 26,731 8,132 10,914 TOTAL LIABILITIES AND FUND BALANCE $ 173,291 $ 0 $ 26,73 I $ 8,132 $ 10,9 I 4 I I I I I I I I I I I I I I I I I I I I I I I 410 411 421 426 427 428 429 I Barthel TIF #11 Industna1 North NE Sewer CSAH TIF # 10 Land of Dnve & Frontage Summerfield and Water 19/37 I Mold-Tech Lakes TIle 52nd Street Road AddItton ExtensIOn IntersectIon $ 0 $ 0 $ 0 $ $ $ 0 $ 0 0 0 0 0 0 0 0 0 0 I 0 0 0 12,000 0 0 0 0 0 0 0 0 0 0 I $ 0 $ 0 $ 0 $ 12,000 $ 0 $ 0 $ 0 I $ 9,098 $ 18,055 $ 10,837 $ 964 $ 22,350 $ 9,136 $ 17,973 138 0 0 0 0 0 2,420 0 0 29,398 0 0 0 0 I 0 0 0 12,000 0 0 0 9,236 18,055 40,235 12,964 22,350 9,136 20,393 I 0 0 0 0 0 0 0 (9,236) (18,055) (40,235) (964) (22,350) (9,136) (20,393) (9,236) (18,055) (40,235) (964) (22,350) (9,136) (20,393) I $ 0 $ 0 $ 0 $ 12,000 $ 0 $ 0 $ 0 I I I I I I 49 I CITY OF ALBERTVILLE, MINNESOTA CAPITAL PROJECTS FUNDS COMB~GBALANCESHEET December 31, 2000 WIth ComparatIve Totals for December 31,1999 (Contmued) 430 I I 432 433 I I 435 I I 438 Cottages ParksIde ParksIde of Cedar Creek 3rd 4th AlbertvIlle IndustrIal Cedar Creek AddItIon AddItIon TIF #7 Park North ASSETS Cash and Investments $ 0 $ 0 $ 0 $ 0 $ 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 $ 0 $ 0 $ 0 $ 0 $ 0 LIABILITIES AND FUND BALANCE LIabIlItIes Cash Overdraft $ 18,264 $ 30,619 $ 29,157 $ 2,768 $ 100,002 Accounts Payable 0 0 0 0 1,542 Contracts and Retamages Payable 0 0 0 0 0 Deferred Revenue 0 0 0 0 0 Total LIabIlItIes 18,264 30,619 29,157 2,768 10 1,544 Fund Balance Unreserved - DeSIgnated for CapItal Outlay 0 0 0 0 0 UndesIgnated (18,264) (30,619) (29,157) (2,768) (101,544) Total Fund Balance (DefiCIt) (18,264) (30,619) (29,157) (2,768) (101,544) TOTAL LIABILITIES AND FUND BALANCE $ 0 $ 0 $ 0 $ 0 $ 0 I I I I I I I I I I I I I I I I I I I I I I I 439 I I 440 I I 442 443 I I 444 445 446 I Center ParksIde Barthe] Bus Oaks ] st CommercIa] Garage Karston Psyk's A]bertvIl]e I AddItIon Park TIP #9 Cove 7th AddItIon Crossmgs Fue Hall $ 0 $ 0 $ 0 $ 0 $ 0 $ 0 $ 0 0 0 0 0 0 0 817 ,972 I 0 0 0 0 0 0 0 0 0 0 0 0 0 0 I $ 0 $ 0 $ 0 $ 0 $ 0 $ 0 $ 817,972 I $ ] ]6,166 $ 4,620 $ 5,958 $ ] 8,862 $ 23,]43 $ 1,858 $ 833,473 440 302 0 0 264 0 0 0 0 0 0 0 0 0 I 0 0 0 0 0 0 0 ] ] 6,606 4,922 5,958 ] 8,862 23,407 ],858 833,473 I 0 0 0 0 0 0 0 (1] 6,606) (4,922) (5,958) (18,862) (23,407) (1,858) (15,50] ) (116,606) (4,922) (5,958) (18,862) (23,407) (1,858) (15,50]) I $ 0 $ 0 $ 0 $ 0 $ 0 $ 0 $ 817,972 I I I I I I 50 I CITY OF ALBERTVILLE, MINNESOTA CAPITAL PROJECTS FUNDS COMB~GBALANCESHEET December 31, 2000 WIth ComparatIve Totals for December 31, 1999 (ContInued) I I 448 I , 447 I I 450 I I 451 449 57th Street CSAH 19 62nd Street AlbertvIlle Mooney Improvement Improvement Improvement VIllas AddItIon ASSETS Cash and Investments $ 0 $ 0 $ 67,215 $ 0 $ 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 $ 0 $ 0 $ 67,215 $ 0 $ 0 LIABILITIES AND FUND BALANCE LIabIlItIes Cash Overdraft $ 133,321 $ 34,405 $ 0 $ 97,682 $ 6,900 Accounts Payable 0 0 0 9,448 577 Contracts and Retamages Payable 0 12,877 0 0 0 Deferred Revenue 0 0 0 0 0 Total LIabIlItIes 133,321 47,282 0 107,130 7,477 Fund Balance Unreserved - DeSIgnated for CapItal Outlay 0 0 67,215 0 0 UndesIgnated (133,321 ) (47,282) 0 (107,130) (7,477) Total Fund Balance (DefiCIt) (133,321) (47,282) 67,215 (107,130) (7,477) TOTAL LIABILITIES AND FUND BALANCE $ 0 $ 0 $ 67,215 $ 0 $ 0 I I I I I I I I I I I I I I I I I I I, I I I I 452 453 454 456 457 460 I Traffic KoIlevllle SW LIft Towne Heunng WWTF Totals I LIght Estates StatIOn Lakes Meadows ExpansIOn 2000 1999 $ 0 $ 0 $ 0 $ 0 $ 846 $ 1,490,425 $ 1,777,554 $ 365,358 0 0 0 0 0 0 817,972 776,852 I 0 0 0 0 0 0 12,000 14,000 0 0 0 0 0 0 0 160,503 I $ 0 $ 0 $ 0 $ 0 $ 846 $ 1 ,490,425 $ 2,607,526 $ 1,316,713 I $ 141,101 $ 22,981 $ 138,306 $ 12,281 $ 0 $ 0 $ 1,860,305 $ 995,777 0 0 0 0 782 21,464 65,914 56,341 0 0 5,805 0 0 169,425 217,505 271,273 I 0 0 0 0 0 0 12,000 14,000 141,101 22,981 144,111 12,281 782 190,889 2,155,724 1,337,391 I 0 0 0 0 64 1,299,536 1,557,346 410,800 (141,101) (22,981 ) (144,111) (12,281) 0 0 (1,105,544) (431,478) (141,101) (22,981 ) (144,111) (12,281) 64 1,299,536 451,802 (20,678) I $ 0 $ 0 $ 0 $ 0 $ 846 $ 1,490,425 $ 2,607,526 $ 1,316,713 I I I I I I 51 I I I I I 410 411 421 426 427 428 429 I Barthel TIF#l1 Industnal North NE Sewer CSAH TIF#10 Land of Dnve & Frontage Summerfield & Water 19/37 I Mold- Tech Lakes TIle 52nd Street Road AddItIon ExtensIOn IntersectIOn $ 0 $ 0 $ 0 $ 0 $ 0 $ 0 $ 0 0 0 0 3,120 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 3,120 0 0 0 453 978 589 179 1,216 497 247 I 0 0 0 0 0 0 9,782 4,143 220 0 0 0 0 10,350 0 0 29,398 0 0 0 14 I 0 0 0 0 0 0 0 4,596 1,198 29,987 179 1,216 497 20,393 I (4,596) (1,198) (29,987) 2,941 (1,216) (497) (20,393) 0 0 0 0 0 0 0 I (4,596) (1,198) (29,987) 2,941 (1,216) (497) (20,393) I (4,640) (16,857) (10,248) (3,905) (21,134) (8,639) 0 $ (9,236) $ (18,055) $ (40,235) $ (964) $ (22,350) $ (9,136) $ (20,393) I I I I I 52 I CITY OF ALBERTVILLE, MINNESOTA CAPITAL PROJECTS FUNDS COMBINING STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE Year Ended December 31, 2000 WIth ComparatIve Totals for the Year Ended December 31, 1999 (Contmued) 430 ParksIde 3rd AddItIon REVENUES Property Taxes SpecIal Assessments Charges for ServIces MIscellaneous Revenues - Investment Income Developer ReImbursements Total Revenues $ o o o o o o EXPENDITURES Other CapItal Outlay - Engmeer Fees Legal Fees Other ProfeSSIOnal SerVIces Land Total ExpendItures 992 o 47 o o 1,039 EXCESS OF REVENUES OVER (UNDER) EXPENDITURES OTHER FINANCING SOURCES Bond Proceeds (1,039) o EXCESS OF REVENUES AND OTHER FINANCING SOURCES OVER (UNDER) EXPENDITURES (1,039) (17,225) $ (18,264) FUND BALANCE (DEFICIT) - January 1 FUND BALANCE (DEFICIT) - December 31 , t 432 ParksIde 4th AddItIon $ 1,666 o o o o 1,666 (1,666) (1,666) (28,953) $ (30,619) I J 433 Cottages of AlbertvIlle TIF #7 o o o o o o $ 1,587 o o o o 1,587 (1,587) o (1,587) (27,570) $ (29,157) I I 435 Cedar Creek Industnal Park o o o $ 0 o o o o o 150 o o o o 150 (150) o (150) (2,618) $ (2,768) I I I I I I I I I I 438 Cedar Creek North $ 0 o o o o o o o o 4,551 20,953 2,997 1,004 o 29,505 I I (29,505) I I I o o (29,505) (72,039) $ (101,544) I I I I I' I I I I I 439 440 442 443 444 445 446 I Center Parkslde Barthel Bus Oaks 1st CommercIal Garage Karston Psyk's AlbertVIlle I AddItIon Park TIF #9 Cove 7th Addltton Crossmgs FIre Hall $ 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 1,468 0 0 0 0 0 0 0 I 0 0 0 0 0 0 1,468 6,266 224 324 1,019 1,069 87 0 I 2,469 0 0 503 4,308 836 9,652 82 1,127 0 0 1,155 0 1,127 0 1,024 0 0 14 0 147,996 I 0 0 0 0 0 0 0 8,817 2,375 324 1,522 6,546 923 158,775 I (8,817) (2,375) (324) (1,522) (6,546) (923) (157,307) 0 0 0 0 0 0 0 I (8,817) (2,375) (324) (1,522) (6,546) (923) (157,307) I (107,789) (2,547) (5,634) (17,340) (16,861) (935) 141,806 $ (116,606) $ (4,922) $ (5,958) $ (18,862) $ (23,407) $ (1,858) $ (15,501) 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 I Year Ended December 31, 2000 WIth ComparatIve Totals for the Year Ended December 31,1999 (Contmued) 447 I I 448 I , 449 I I 450 451 I I 57th Street CSAH 19 62nd Street AlbertvIlle Mooney Improvement Improvement Improvement VIllas AddItIon I REVENUES Property Taxes $ 0 $ 0 $ 0 $ 0 $ 0 SpecIal Assessments 0 0 0 0 0 Charges for ServIces 0 0 0 9,600 250 I MIscellaneous Revenues - Investment Income 6,878 6,693 13,833 0 0 Developer ReImbursements 0 0 0 0 0 Total Revenues 6,878 6,693 13,833 9,600 250 I EXPENDITURES Other 0 0 0 2,246 265 CapItal Outlay - I Engmeer Fees 1,251 2,845 3,854 80,121 7 Legal Fees 0 0 0 13,511 3,685 Other ProfeSSIOnal ServIces 88,138 110,142 9,435 7,207 1,982 Land 0 0 0 0 0 I Total ExpendItures 89,389 112,987 13,289 103,085 5,939 EXCESS OF REVENUES OVER (UNDER) EXPENDITURES (82,511) (106,294) 544 (93,485) (5,689) I OTHER FINANCING SOURCES Bond Proceeds 0 0 0 0 0 EXCESS OF REVENUES AND OTHER I FINANCING SOURCES OVER (UNDER) EXPENDITURES (82,511) (I 06,294) 544 (93,485) (5,689) FUND BALANCE (DEFICIT) - January 1 (50,810) 59,012 66,671 (13,645) (1,788) I FUND BALANCE (DEFICIT) - December 31 $ (133,321) $ (47,282) $ 67,215 $ (107,130) $ (7,477) I I I I I I I I I I 452 453 454 456 457 460 I Traffic KollevIlle SW LIft Towne Heunng WWTF Totals I LIght Estates Statton Lakes Meadows ExpansIon 2000 1999 $ 0 $ 0 $ 0 $ 0 $ 0 $ 0 $ 68,792 $ 56,910 0 0 0 0 0 0 3,120 36,361 I 0 0 0 0 3,400 0 13,250 8,850 0 0 0 0 49 6,376 45,134 17,343 0 0 0 0 0 0 0 160,503 I 0 0 0 0 3,449 6,376 130,296 279,967 5,665 492 1,974 122 0 0 41,246 77 ,887 I 3,750 13,815 25,228 3,251 1,514 242,388 426,527 313,727 55 6,352 779 3,107 743 3,272 75,497 52,790 I 131,631 2,322 116,130 5,801 1,128 1,011,180 1,664,546 2,247,472 0 0 0 0 0 0 0 24,925 141,101 22,981 144,111 12,281 3,385 1,256,840 2,207,816 2,716,801 I (141,101 ) (22,981 ) (144,111) (12,281 ) 64 (1,250,464) (2,077 ,520) (2,436,834) 0 0 0 0 0 2,550,000 2,550,000 2,512,294 I (141,101) (22,981 ) (144,111) (12,281) 64 1,299,536 472,480 75,460 I 0 0 0 0 0 0 (20,678) (96,138) I $ (141,101) $ (22,981 ) $ (144,111) $ (12,281) $ 64 $ 1,299,536 $ 451,802 $ (20,678) I I I I 54 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 prOVlSlon of such basIc servIces as water, electncIty, 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 I ENTERPRISE FUNDS COMBnITNGBALANCESHEET I December 31, 2000 WIth ComparatIve Totals for December 31, 1999 I 601 I I 602 I ~ 604 SanItary Storm I ASSETS Sewer Water Water CURRENT ASSETS I Cash and Cash EqUIvalents $ 0 $ 616,310 $ 224,269 Accounts ReceIvable 72,985 92,713 9,147 Due from Other Governments 22,256 17,821 84,849 Total Current Assets 95,241 726,844 318,265 I FIXED ASSETS Land 190,269 0 0 I Sewer Plant and LInes 3,741,108 0 0 Water Mam 0 296,263 0 MachInery and EqUIpment 100,143 13,532 0 I ConstructIon In Progress 1,569,248 41,220 0 Total Cost 5,600,768 351,015 0 Less Accumulated DepreCIatIOn (918,201) (9,662) 0 I Net FIxed Assets 4,682,567 341,353 0 TOTAL ASSETS $ 4,777,808 $ 1,068,197 $ 318,265 I LIABILITIES AND FUND EQUITY CURRENT LIABILITIES Cash Overdraft $ 123,980 $ 0 $ 0 I Accounts Payable 4,011 814 92 Due to Other Governments 0 231,940 0 Current MatuntIes of Long-Term Debt 63,548 0 0 I Total Current LIabIlItIes 191,539 232,754 92 LONG-TERM DEBT, LESS CURRENT PORTION I G 0 Revenue Notes - PF A 1,048,075 0 0 Total LIabIlItIes 1,239,614 232,754 92 I FUND EQUITY Contnbuted CapItal 3,415,014 337,483 0 I RetaIned Earmngs - Reserved for OperatIng CapItal 0 0 0 Umeserved 123,180 497,960 318,173 Total Fund EqUIty 3,538,194 835,443 318,173 I TOTAL LIABILITIES AND FUND EQUITY $ 4,777 ,808 $ 1,068,197 $ 318,265 I I I I I I I Totals 2000 1999 I $ 840,579 $ 406,930 174,845 64,917 I 124,926 129,164 1,140,350 601,011 I 190,269 190,269 3,741,108 3,741,108 296,263 296,263 I 113,675 111,726 1,610,468 234,130 5,951,783 4,573,496 I (927,863) (835,489) 5,023,920 3,738,007 I $ 6,164,270 $ 4,339,018 I $ 123,980 $ 192,592 4,917 34,539 I 231,940 0 63,548 61,489 424,385 288,620 I 1,048,075 1,111,624 I 1,472,460 1,400,244 I 3,752,497 2,353,519 0 97,894 I 939,313 487,361 4,691,810 2,938,774 I $ 6,164,270 $ 4,339,018 55 I I CITY OF ALBERTVILLE, MINNESOTA I ENTERPRISE FUNDS COMBINING STATEMENT OF REVENUES, EXPENSES AND I CHANGES IN RETAINED EARNINGS Year Ended December 31, 2000 WIth ComparatIve Totals for the Year Ended December 31, 1999 I 601 I I 602 I ~ 604 I Samtary Storm Sewer Water Water I OPERATING REVENUES Charges for ServIces $ 297,883 $ 126,109 $ 62,588 I Water Trunk Fees 0 77,055 0 Water AvaIlabIlIty Charges 0 84,000 0 PenaltIes 5,421 1,726 388 Total Operatmg Revenues 303,304 288,890 62,976 I OPERATING EXPENSES Salanes and Benefits 28,096 27,411 0 I RepaIrs and Mamtenance 7,204 6,334 0 Engmeer Fees 0 0 0 Legal Fees 0 0 0 I SupplIes 50,457 11,072 767 ProfeSSIOnal ServIces 13,327')L. 13,582 8,117 Insurance 4,184 4,184 0 I UtIlItIes 19,047 0 0 DepreCIatIon 83,034 9,340 0 MIscellaneous 312 184 0 Total Operatmg Expenses 205,661 72,107 8,884 I OPERATING INCOME 97,643 216,783 54,092 NON-OPERATING REVENUES I (EXPENSES) Water Meter Sales 0 15,155 0 I Interest Income (Expense) (11,015) 22,415 10,744 Bond Interest Expense and FIscal Charges (38,441) 0 0 Water Meter Purchases 0 (13,318) 0 I Total Non-Operatmg Revenues (Expenses) (49,456) 24,252 10,744 NET INCOME 48,187 241,035 64,836 I RETAINED EARNINGS - January 1 74,993 256,925 253,337 I RESIDUAL EQUITY TRANSFER 0 0 0 RETAINED EARNINGS - December 31 $ 123,180 $ 497 ,960 $ 318,173 I I CITY OF ALBERTVILLE, MINNESOTA ENTERPRISE FUNDS COMBINING STATEMENT OF CASH FLOWS Year Ended December 31, 2000 WIth ComparatIve Totals for the Year Ended December 31, 1999 601 , I 602 I ~ 604 Samtary Storm Sewer Water Water CASH FLOWS FROM OPERATING ACTIVITIES Operatmg Income $ 97,643 $ 216,783 $ 54,092 Adjustments to ReconcIle Operatmg Income to Net Cash ProvIded by Operatmg ActIvItIes DeprecIatIOn 83,034 9,340 0 Change m Assets and LiabIlItIes (Increase) Decrease m Accounts ReceIvable (15,013) (92,713) (2,202) (Increase) Decrease m Due from Other Governments 12,641 (8,723) 320 Increase (Decrease) m Accounts Payable (19,438) (10,276) 92 Increase m Due to Other Governments 0 231,940 0 Total Adjustments 61,224 129,568 (1,790) Net Cash ProvIded by Operatmg ActIvItIes 158,867 346,351 52,302 CASH FLOWS FROM NONCAPIT AL FINANCING ACTIVITIES ResIdual EqUIty Transfers In 0 0 0 CASH FLOWS FROM CAPITAL AND RELATED FINANCING ACTIVITIES PnncIpal Payments on Bonds (61,490) 0 0 Interest and FIscal Charges PaId on Bonds (38,441) 0 0 Proceeds from Sales of Water Meters 0 15,155 0 AcqulSltIOn of Water Meters 0 (13,318) 0 AcqulSltIOn of FIxed Assets 20,691 0 0 Net Cash ProvIded (Used) by CapItal and Related Fmancmg ACtIVItI (79,240) 1,837 0 CASH FLOWS FROM INVESTING ACTIVITIES Interest on Investments (11,015) 22,415 10,744 Net Increase m Cash and Cash EqUIvalents 68,612 370,603 63,046 Cash and Cash EqUIvalents, January 1 (192,592) 245,707 161,223 Cash and Cash EqUIvalents, December 31 $ (123,980) $ 616,310 $ 224,269 I I I I I I I I I I I I I I I I I I I CITY OF ALBERTVILLE, MINNESOTA GENERAL LONG-TERM DEBT ACCOUNT GROUP 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 faIth 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 matunty 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, 2000 and 1999 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 2000 1999 $ 817,661 $ 371,218 5,087,816 3,078,782 $ 5,905,477 $ 3,450,000 $ 0 $ 15,000 40,000 60,000 15,000 30,000 125,000 155,000 155,000 215,000 80,000 100,000 225,000 255,000 860,000 860,000 1,760,000 1,760,000 2,550,000 0 95,477 0 $ 5,905,477 $ 3,450,000 TOTAL AVAILABLE AND TO BE PROVIDED GENERAL LONG-TERM DEBT G 0 Advance Refundmg and Improvement Bond of 1988 GO 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 GO Improvement Bonds, Senes 1999A G 0 Sewer Revenue Bonds, Senes 2000A CapItal Lease Payable TOTAL GENERAL LONG-TERM DEBT 59 60 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 August 2, 2001 Honorable Mayor and CIty CouncIl CIty of AlbertvIlle AlbertvIlle, MInnesota We have audIted the general purpose financIal statements ofthe CIty of AlbertvIlle as of and for the year ended December 31, 2000, and have Issued our report thereon dated August 2, 2001 We conducted our audIt In accordance wIth audItIng standards generally accepted In the Umted States of Amenca and the prOVISIons of the Mznnesota Legal Complzance Audzt Guzde for Local Government, promulgated by the Legal ComplIance Task Force pursuant to Mznnesota Statute Sec 6 65 AccordIngly, the audIt Included such tests ofthe accountIng records and such other audItIng procedures as we consIdered necessary In the CIrcumstances The Mznnesota Legal Complzance Audzt Guzde for Local Government covers five maIn categones of complIance to be tested contractIng 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 pages 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 these specIfied partIes ~~I\..I i>Mn.-fLV, t/~I U-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, 2000 (ContInued) CURRENT YEAR FINDING Collateral Mznnesota Statutes Sec 118A 01 and 118A 03, provIde that all deposIts wIth financIal InstItutIOns must be collaterahzed In an amount equal to 110% of deposIts In excess of FDIC Insurance The deposIts of the CIty at December 31, 2000, were unsecured as follows 110% of DeposIts In Excess of FDIC at December 31, 2000 Market Value of Collateral at December 31,2000 InsuffiCIent Collateral Secunty State Bank $ 3,011,487 $ 2,912,250 $ 99,237 We recommend the CIty mom tor collateral levels to ensure proper collaterahzatIOn CORRECTIVE ACTION TAKEN 1 ExplanatIon of DIsagreement wIth AudIt FIndIng There IS no dIsagreement wIth the audIt findIng 2 ActIOns Planned In Response to FIndIng The CIty WIll momtor collateral levels to ensure proper collaterahzatIOn 3 OffiCIal ResponsIble for Ensunng CAP LInda Goeb, CIty AdmInIstrator, IS responsIble for ensunng the correctIve actIon of the defiCIency 4 Planned CompletIOn Date for CAP The planned completIon date for the CAP IS December 31, 2001 5 Plan to Momtor CompletIOn of CAP John Olson, the Mayor, and the CIty CouncIl WIll be momtonng thIS correctIve actIOn plan 61 62 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 31,2000 (ContInued) CURRENT YEAR FINDING Performance Bonds Mznnesota State Statute 574 26 reqUIres that contractors dOIng publIc work pledge a performance bond In an amount not less than the contract pnce Ifthe contract IS more than $ 10,000 The CIty dId not receIve a performance bond for the old CIty Hall reroofing project exceedIng $ 10,000 In 2000 To be In complIance wIth Mznnesota State Statute 574 26, we recommend the CIty obtaIn contractor performance bonds on all contracts that exceed $ 10,000 CORRECTIVE ACTION PLAN (CAP) 1 ExplanatIOn of DIsagreement wIth AudIt FIndIng There IS no dIsagreement wIth the audIt findIng 2 ActIOns Planned In Response to FIndIng The CIty WIll obtaIn performance bonds on all contracts over $ 10,000 3 OffiCIal ResponSIble for EnSUrIng CAP LInda Goeb, CIty AdmInIstrator, 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, 2001 5 Plan to Momtor CompletIon of CAP John Olson, the Mayor, and the CIty CouncIl WIll be momtonng thIS correctIve actIon plan 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, 2000 PRIOR 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 Dunng 1999, the CIty'S collateral was not perfected CORRECTIVE ACTION TAKEN The CIty perfected ItS collateral 63