2001 Audited Financial Statements
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CITY OF ALBERTVILLE, MINNESOTA
TABLE OF CONTENTS
ELECTED OFFI CIALS AND ADM1NTSTRATI ON... .... ......... ............................ .... .....
INDEPENDENT A UDlTORS' REPOR T ......... ......... ..... ................................................
GENERAL PURPOSE FINANCIAL STATEMENTS _
Combined Balance Sheet - An Fund Types and Account Groups.............................
Com b i ned S tatem ent of R eVen ues, Expend itu res an d Cha u ges in Fu nd Ba lance _
An Governmental Fund Types............................................ .....................................
Combined Statement of Revenues, Expenditures aud Changes in Fund Balance _
Bud get and Actual - General and Special Revenue Fund Types.............................
Combined Statement of Revenues, Expenses and Changes in Retained Earnings _
An Proprietary Fund Types ............. ................ .... .............. ............ ..........................
Co m b i ned Stat ement n f Cash Flows - A II Prop ri etary Fund Types..........................
Notes to the Financial Statements..............................................................................
COMBINING, INDIVIDUAL FUND AND ACCOUNT GR OllP FINANCIAL
STATEMENTS _
General Fund _
Comparative Balance Sheet.................................................................................
Statement of Revenues, Expenditures and Cl]anges in Fund Balance _ Budget
and Actua I ......................................... ..................................................................
Special Revenue Funds _
Combining Balance Sheet...................... .................................................. ..............
Combiuing Statement of Revenues, Expenditures and Changes in Fund
B al arlCe.......................................................................................................
Debt Service Funds
Combining Balance Sheet....................................................................................
Combining Statement of Revenues, Expenditures, and Chauges in Fund
B a I ar]e c.................................................................. ......................... ....................
Capital Projects Funds _
Com bin i ng Balan ce Sheet.....................................................................................
Combining Statement orRevenues, Expenditures and Changes in Fund
Balance............................................................................................................ ..
Enterprise Funds _
Combiuing Balance Sheet....................... ................................. ............................
Combining Statement ofRevenues, Expenses, and Changes in Retajned
Earn ings .............................................................................................................
Combining Statement of Casl] Flows...................................................................
Agency Fund _
Statement at" Changes in A ssets and Li ab i h ties..................................................
Statement of General Fixed Assets (Unaudited).......................................................
Statement of General Long-Term Debt.....................................................................
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INDEPENDENT AUDITORS' REPORT ON COMPLIANCE WlTH MINNFSOT A
STATUTES................................................................................................................... .
FINDINGS AND CORRECTIVE ACTION PLANS ON COMPLIANCE WITH
MINNESOTA STA TUTFS........... .............................. ..... ................................................
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KERN. DrWENTER.Vl ERE
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INDEPENDENT AUDITORS' REPORT
July 18,2002
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Honorable Mayor and City Council
City of Albertville
Albertville, Minnesota
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We have audited the accompanying general purpose financial statements of the City of
Albertville, Minnesota, as of and for the year ended December 31, 2001, as listed in 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 financial
statements based on our audit.
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Except as discussed in the following paragraph, we conducted our audit in accordance with
auditing standards generally accepted in the United States of America. Those standards require
that we plan and perfonn the audit to obtain reasonable assurance about whether the general
purpose financial statements are free of material misstatement. An audit includes examining, on
a test basis, evidence supporting the amounts and disclosures in the general purpose financial
statements. An audit also includes assessing the accounting principles used and significant
estimates made by management, as well as evaluating the overall general purpose financial
statement presentation. We believe that our audit provides a reasonable basis for our opinion.
Because the City does not maintain adequate historical 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 opinion on the balance sheet of the general fixed asset account group as of December 31,
2001.
In our opinion, except for the effects of such adjustment, if any, as might have been determined
to be necessary had we audited the general fixed asset account group, the general purpose
financial statements referred to above present fairly, in all material respects, the financial
position of the City of Albertville, Minnesota, as of December 31, 2001, and the results of its
operations and cash flows of its proprietary fund types for the year then ended in conformity with
accounting principles generally accepted in the United States of America.
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CITY OF ALBERTVILLE, MINNESOTA
Governmental Fund Types
Special Debt Capital
General Revenue Service Projects
$ 1,764,374 $3,911,218 $ 829,774 $ 733,581
0 0 2.446 848,215
0 0 85,060 0
41,259 0 7,976 0
0 0 875,606 10,000
0 0 286,834 0
0 0 0 0
22,157 0 0 0
11,064 0 123,977 0
0 0 0 0
0 107,547 0 0
0 0 0 0
0 0 0 0
0 0 0 0
$ 1,838,854 $ 4,018,765 $ 2,211 ,673 $ 1,591,796
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COMBINED BALANCE SHEET - ALL FUND TYPES AND ACCOUNT GROUPS
December 31, 2001
ASSETS AND OTHER DEBITS
Assets:
Cash and Investments (Including Cash
Equivalents)
Cash in Trust
Restricted Cash in Trust
Taxes Receivable -
Delinquent
Special Assessments Receivable -
Defened
Delinquent
Accounts Receivable
Interest Receivable
Due from Other Governmental Units
Due from Other Funds
Notes Receivable
Fixed Assets - Net
Other Debits:
Amount Available in Debt Service Funds
Amount to be Provided for Retirement of
General Long-Term Debt
TOTAL ASSETS AND
OTHER DEBITS
LIABILITIES, EQlJITY AND OTHER CREDITS
Liabilities:
Cash Overdraft
Accounts Payable
Contracts and Retainages Payable
Accrued Payroll Taxes and Benefits
Due to Other Governments
Due to Other Funds
Defened Revenue
Bonds Payable
Revenue Notes Payable
Capital Leases Payable
Total Liabilities
Equity and Other Credits:
Investment in General Fixed Assets
Contributed Capital
Retained Earnings -
Reserved
Unreserved
Fund Balance -
Reserved
Unreserved -
Designated
U ncleslgnated
Total Equity and Other Credits
TOTAL LIABILITIES, EQUITY
AND OTHER CREDITS
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s 0 $ 2,939 $ 280.472 $ 2,546,416
739,761 0 0 243,811
0 0 0 32.952
0 0 0 0
0 0 0 0
40.000 0 0 0
41259 107,547 U70.4l6 10,000
0 0 0 0
0 0 0 0
0 0 0 0
821,020 110,486 1,450,888 2,833,179
0 0 0 ()
0 0 0 0
0 0 0 0
0 0 0 0
0 0 863,706 ()
700,000 244,553 177.535 692.489
317,834 3,663,726 (280,456) (1,933,872)
1,017,834 3,908,279 760,785 (1,241,383)
$ 1.838,854 $ 4,018,765 $ 2,211,673 $ 1,591,796
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The notes to the financial statements are an integral pm1 of this statement.
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I Proprietary Fiduciary
Fund Type Fund Type Account Groups
Genera]
Fixed General Tota]s
I Assets Long - Term (Memorandum Only)
Enterprise Agency (Unaudited) Debt 2001 2000
I $ 1,136,576 $ 160,700 $ 0 $ 0 $ 8,536,223 $ 8,293,722
0 0 0 0 850,661 820,314
0 0 0 0 85,060 82,027
I 0 0 0 0 49,235 22,244
0 0 0 0 885,606 1,143,027
I 0 0 0 0 286,834 264,560
174,518 0 0 0 174,518 174,845
0 0 0 0 22,157 8,52]
136,776 0 0 0 271,817 131,368
I 40,000 0 0 0 40,000 0
0 0 0 0 107,547 124,373
7,] 12,6]2 0 1,098,083 0 8,210,695 6,122,003
I 0 0 0 760,785 760,785 817,661
0 0 4,582,899 4,582,899 5,087,8]6
I $ 8,600,482 $ 160,700 $ 1,098,083 $ 5,343,684 $ 24,864,037 $ 23,092,481
I $ 104,043 $ 0 $ 0 $ 0 $ 2,933,870 $ 2,171,055
2,978 160,700 0 0 1,147,250 648,520
I 0 0 0 0 32,952 217,505
0 0 0 0 0 9,856
90,673 0 0 0 90,673 254,526
0 0 0 0 40,000 0
I 0 0 0 0 1,329,222 1,554,204
0 0 0 5,270,000 5,270,000 5,810,000
1,044,987 0 0 0 1,044,987 1,111,623
0 0 0 73,684 73,684 95,477
I 1,242,681 160,700 0 5,343,684 11,962,638 11,872,766
0 0 1,098,083 0 1,098,083 1,098,083
I 5,894,983 0 0 0 5,894,983 3,752,497
97,894 0 0 0 97,894 0
I 1,364,924 0 0 0 1,364,924 939,313
0 0 0 0 863,706 851,110
I 0 0 0 0 1,814,577 2,642,125
0 0 0 0 1,767,232 1,936,587
7,357,801 0 1,098,083 0 12,901,399 11,219,715
I $ 8,600,482 $ 160,700 $ 1 ,098,083 $ 5,343,684 $ 24,864,037 $ 23,092,481
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CITY OF ALBERTVILLE, MINNESOTA I
COMBINED STATEMENT OF REVENUES, EXPENDITURES, I
AND CHANGES IN FUND BALANCE - ALL GOVERNMENTAL FUND TYPES
Year Ended December 31, 2001
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Governmental Fund Types
Special Debt I
General Revenue Service
REVENUES:
Taxes $ 1,039,058 $ 0 $ 172,621
Special Assessments 0 0 529,571 I
Licenses and Permits 306,699 0 0
Intergovernmental Revenues 272,892 0 0
Charges for Services 69,947 1,183,373 0 I
Miscellaneous Revenues 92,198 195,444 24,354
Total Revenues 1,780,794 1,378,817 726,546
EXPENDITURES: I
Current -
General Government 512,513 0 0
Public Safety 336,287 0 0 I
Public Works 360,637 0 0
Sanitation 21,535 0 0
Culture and Recreation 117,628 26,521 0 I
Economic Development 1,851 0 0
Miscellaneous 0 218 11,103
Capital Outlay 0 0 0
Debt Service - I
Principal 21,793 0 540,000
Interest and Fiscal Charges 5,824 0 232,319
Total Expenditures 1,378,068 26,739 783,422 I
EXCESS OF REVENUES OVER (UNDER)
EXPENDITURES 402,726 1,352,078 (56,876)
OTHER FINANCING SOURCES (USES): I
Sale of General Fixed Assets 10,950 0 0
Capital Lease Proceeds 0 0 0 I
Operating Transfers In 0 15,000 0
Operating Transfers Out (15,000) (1,000,000) 0
Bond Proceeds 0 0 0
Total Other Financing Sources (Uses) (4,050) (985,000) 0 I
EXCESS OF REVENUES AND OTHER
FINANCING SOURCES OVER (UNDER) I
EXPENDITURES AND OTHER FINANCING USES 398,676 367,078 (56,876)
FUND BALANCE - January 1 619,158 3,541,201 817,661 I
FUND BALANCE - December 31 $ 1,017,834 $ 3,908,279 $ 760,785
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The notes to the financial statements are an integral part of this statement. I
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EXCESS OF REVENUES AND OTHER FINANCING
SOURCES OVER (UNDER) EXPENDITURES
AND OTHER FINANCING USES
$ 155,000
398.676
$ 243,676
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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 31,2001
General Fund
Over
(Under)
Budget Actual Budget
$ 1,042,719 $ 1,039,058 $ (3,661 )
104,800 306,699 201,899
261,782 272,892 11,110
49,300 69,947 20,647
100 0 (100)
27,800 92,198 64,398
1,486,501 1,780,794 294,293
REVENUES:
Taxes
Licenses and Permits
Intergovemmental Revenues
Charges for Services
Fines
Miscellaneous Revenues
Total Revenues
EXPENDITURES:
Current -
General Govemment
Public Safety
Public Works
Sanitation
Culture and Recreation
Economic Development
Miscellaneous
Debt Service -
Principal
Interest
Total Expenditures
354,237 512,513 158,276
406,580 336,287 (70,293)
348,437 360,637 12,200
23,000 21.535 (1,465)
153,947 117,628 (36,319)
5,300 1,851 (3,449)
0 0 0
25,000 21,793 (3,207)
0 5,824 5,824
1,316,501 1,378,068 61,567
170,000 402,726 232,726
0 10,950 10,950
0 0 0
0 0 0
( 15,000) (15,000) 0
(15,000) ( 4,050) 10,950
EXCESS OF REVENUES OVER (UNDER)
EXPENDITURES
OTHER FINANCING SOURCES (USES):
Sale of General Fixed Assets
Capital Lease Proceeds
Operating Transfer In
Operating Transfer Out
Total Other Financing Sources (Uses)
FUND BALANCE - January 1
619,158
FUND BALANCE - December 3]
$ ],017,834
The notes to the financial statements are an integral part of this statement.
Totals
2001 2000
$ 520,578 $ 486,580
119,986 77,055
159,326 84,000
15,391 7,535
815,281 655,170
71 ,816 55,507
22,798 13,538
0 0
0 0
58,075 62,296
24,097 35,026
0 8,368
28,601 19,047
95,403 92,374
9 496
300,799 286,652
514,482 368,518
35,694 15,155
40253 22,144
(33,295) ( 3 8 ,44 I )
(33,629) (13,318)
9,023 (14,460)
523,505 354,058
939,313 585,255
$ 1,462,818 $ 939,313
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CITY OF ALBERTVILLE, MINNESOTA
COMBINED STATEMENT OF REVENUES, EXPENSES AND
CHANGES IN RETAINED EARNINGS - ALL PROPRIETARY FUND TYPES
Year Ended December 31, 2001
With Comparative Totals for the Year Ended December 31, 2000
OPERA TING REVENUES:
Charges for Services
Water Trunk Fees
Water Availability Charges
Penalties
Total Operating Revenues
OPERATING EXPENSES:
Salaries and Benefits
Repairs and Maintenance
Engineer Fees
Legal Fees
Supplies
Professional Services
Insurance
Utilities
Depreciation
Miscellaneous
Total Operating Expenses
OPERATING INCOME
NON-OPERA TING REVENUES (EXPENSES):
Water Meter Sales
Interest Income
Interest Expense and Fiscal Charges
Water Meter Purchases
Total Non-Operating Revenues (Expenses)
NET INCOME
RETAINED EARNINGS - January 1
RETAINED EARNINGS - December 31
The notes to the financial statements are an integral part ofthis statement.
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CITY OF ALBERTVILLE, MINNESOTA
COMBINED STATEMENT OF CASH FLOWS -
ALL PROPRIETARY FUND TYPES
Year Ended December 31,2001
With Comparative Totals for the Year Ended December 31, 2000
Totals
2001 2000
$ 514,482 $ 368,518
95,403 92,374
327 (109,928)
(11,850) 4,238
(1,939) (29,622)
(141,267) 231,940
(59,326) 189,002
455.1 56 557,520
( 40,000) 0
CASH FLOWS FROM OPERATING ACTIVITIES:
Operating Income
Adjustments to Reconcile Operating Income to
Net Cash Provided by Operating Activities:
Depreciation
Change in Assets and Liabilities:
(Increase) Decrease in Accounts Receivable
(Increase) Decrease in Due from Other Governments
(Deerease) in Accounts Payable
Increase (Decrease) in Due to Other Governments
Total Adjustments
Net Cash Provided by Operating Activities
CASH FLOWS FROM NONCAPIT AL FINANCING ACTIVITIES
Advances to Other Funds
CASH FLOWS FROM CAPITAL AND RELATED FINANCING
ACTIVITIES:
Principal Payments on Bonds
Interest and Fiscal Charges Paid on Bonds
Proceeds from Sales of Water Meters
Acquisition of Water Meters
Acquisition of Fixed Assets
Net Cash (Used) by Capital and Related Financing Activities
(66,636) (61,490)
(33,295) (38,441)
35,694 15,155
(33,629) (13,318)
(41,609) 20,691
(139,475) (77,403)
40,253 22,144
315,934 502,261
716,599 214,338
$ 1 ,032,533 $ 716,599
CASH FLOWS FROM INVESTING ACTIVlTIES:
Investment Income Received
Net Increase in Cash and Cash Equivalents
Cash and Cash Equivalents, January I
Cash and Cash Equivalents, December 31
The notes to the financial statements are an integral part of this statement.
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CITY OF ALBERTVILLE, MINNESOTA
NOTES TO THE FINANCIAL STATEMENTS
Year Ended December 31, 200 1
NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
The City of Albertville, Minnesota, has a mayor-council forn1 of government. A mayor and four
council members are elected by the voters of the City for two-year and four-year tern1s,
respectively.
The accounting policies of the City conform to accounting principles generally accepted in the
United States of America except that the City has not maintained adequate fixed asset records for
the General Fixed Asset Account Group. With respect to proprietary activities, the City has
applied all applicable Governmental Accounting Standards Board (GASB) pronouncements as
well as Financial Accounting Standards Board (F ASB) pronouncements, Accounting Principles
Board (APB) Opinions, issued on or before November 30, 1989 unless those pronouncements
conflict with or contradict GASB pronouncements.
A. Financial Reporting Entity
The financial statements present the City and its component units. The City includes all
funds, account groups, organizations, institutions, agencies, departments, and offices that are
not legally separate from such. Component units are legally separate organizations for which
the elected officials of the City are financially accountable and are included within the
general purpose financial statements of the City because of the significance of their
operational or financial relationships with the City.
The City is considered financially accountable for a component unit ifit appoints a voting
majority of the organization's governing body and it is able to impose its will on the
organization by significantly influencing the programs, projects, activities, or level of
services performed or provided by the organization, or there is a potential for the
organization to provide specific financial benefits to, or impose specific financial burden on,
the City.
As a result of applying the component unit definition criteria above, certain organizations are
presented in this report as follows:
· Blended Component Units - Reported as if they were part of the City
· Discretely Presented Components Units - Entails repOliing the component unit
financial data in a column separate from the financial data of the City
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CITY OF ALBERTVILLE, MINNESOTA
NOTES TO THE FINANCIAL STATEMENTS
Year Ended December 31,2001
NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)
A. Financial Reporting Entity (Continued)
.. Related Organization - The relationship of the City with entity is disclosed
· Joint Ventures and Jointly Govemed Organizations - The relationship of the City with
the entity is disclosed
For each ofthe categories above, the specific entities are identified as follows:
Blended Component Unit:
None
Discretely Presented Component Units:
None
Related Organization:
None
Joint Ventures and Jointly Govemed Organizations:
Joint Powers Board Water Fund
In 1977 the City of Albertville entered into an agreement with the Cities of St.
Michael and Hanover and Frankfort Township to construct a water system under a
grantbond arrangement with the United States Economic Development
Administration (EDA). Water revenue bonds were issued in the name of the City of
Albertville and purchased by EDA. The Joint Powers Board remits the annual bond
and interest payment to the City of Albertville whIch in tum remits the payment to
EDA.
The joint powers agreement states in the event the Joint Powers Board Water Fund
does not generate sufficient revenue to pay operating costs and principal and interest
on bonds, the participants agree to contribute from their general fund an amount
sufficient to pay for such deficiency. At the time of the original agreement, each city
and town was to contribute 25% of the required amount. In 1996, Frankfort
Township was annexed into the Cities of S1. Michael, Albel1ville, and Otsego and no
longer exists as a township. Therefore, the City of Albertville, is now required to
contribute one-third of any potential deficiencies of the Joint Powers Board.
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CITY OF ALBERTVILLE, MINNESOTA
NOTES TO THE FINANCIAL STATEMENTS
Year Ended December 31, 2001
NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)
A. Financial Reporting Entity (Continued)
Joint Ventures and Jointly Governed Organizations: (Continued)
Joint Powers Board Water Fund (Continued)
A summary of the financial infonnation of the Joint Powers Board Water Fund for the
year ended December 31,2000 (2001 information is not available) is:
Total Assets
$ 11 ,359,350
$ 7,383,170
3,976,180
$ 11 ,359,350
Total Liabilities
Total Equity
Total Liabilities and Equity
Total Revenues
Operating Expenses
Other Income (Expense)
$
607,617
721,778
742,381
628,220
Net Income
$
Financial statements for the Joint Powers Board Water Fund may be obtained at
Albertville City Hall.
S1. Michael - Albertville Ice Arena (STMA Arena)
In 1996 and 1997, the City of Albertville entered in a joint powers agreement with the
City of S1. Michael and Independent School District # 885 - S1. Michael - Albertville,
for construction and maintenance of a qualified ice arena. In addition, the City
received notice in 1996 of being selected as a Mighty Ducks grant recipient to help
fund the cost of the arena. The arena was constructed with Mighty Ducks grant
funds, donations, and contributions by the Cities of S1. Michael and Albertville, and
Independent School District # 885.
The joint powers agreement states the City of Albertville is to execute a revenue note
in the amount of $ 133,333 which will be paid back with funds available from the
operation of the ice arena. The total amount of the revenue note is to be $ 400,000, of
which each participant is one-third responsible. If funds are deficient, the City must
pay one-third of the amount necessary to make up the shortage. In addition, the City
must allocate an amount sufficient to pay one-third of any projected shortfall in
annual revenues available for the operation and maintenance of the ice arena.
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CITY OF ALBERTVILLE, MINNESOTA
NOTES TO THE FINANCIAL STATEMENTS
Year Ended December 31, 2001
NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)
A. Financial Reporting Entity (Continued)
Joint Ventures and Jointly Govemed Organizations: (Continued)
St. Michael - Albertville lee Arena (Continued)
During 1998, the City of Albertville contributed the required $ 133,333 toward the ice
arena. In addition, in 1998 the City's Storm Water Enterprise Fund provided the ice
arena with a short-tem110an in the amount of$ 83,333. In 2001 and 2000, the City
did not make any contributions nor receive any payments on the loan.
A summary of the financial information of the STMA Arena lor the year ended
June 30. 2001 is:
Total Assets S 864,806
Total Liabilities $ 653,859
Total Equity 210,947
Total Liabilities and Equity $ 864,806
Total Revenues $ 127,818
Operating Expenses 176,615
Other Income (Expenses) 75
Net Income (Loss) S (48,722)
Financial statements for the STMA Arena may be obtained at Albertville City Hall.
B. Fund Accounting
The accounts of the City are organized on the basis of funds and account groups, each of
which is considered a separate accounting entity. The operations of each fund are accounted
for with a separate set of self-balancing accounts that comprise its assets, liabilities, fund
equity, revenues and expenditures or expenses, as appropriate. Govemment resources are
allocated and accounted for in individual funds based upon the purposes for which they are to
be spent and the means by which spending activities are controlled. The various funds are
grouped, in the financial statements in this report, into six generic fund types and three broad
fund categories, described below.
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CITY OF ALBERTVILLE, MINNESOTA
NOTES TO THE FINANCIAL STATEMENTS
Year Ended December 3] , 200]
NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)
B. Fund Accounting (Continued)
Governmental Funds
The General Fund is the general operating fund ofthe City. It is used to account for all
financial resources except those required to be accounted for in 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 principal, interest, and related costs of general 10ng-ten11 debt.
Capital Projects Funds are used to account for financial resources to be used for the
acquisition or construction of major capital facilities (other than those financed by
proprietary funds).
Proprietary Funds
Enterprise Funds are used to account for operations (a) that are financed and operated in a
manner similar to private business enterprisesnwhere the intent of the governing body is
that the costs (expenses, including depreciation) of providing goods or services to the
general public on a continuing basis be financed or recovered primarily through user
charges; or (b) where the governing body has decided that the periodic detern1ination of
revenues earned, expenses incurred, or net income is appropriate for capital maintenance,
public policy, management control, accountability, or other purposes. The City maintains
sanitary sewer, water, and ston11 water enterprise funds.
Fiduciary Funds
Agency Funds - These funds function primarily as a clearing mechanism for cash
resources collected by developers. The resources are collected by the City, held a brief
period and then disbursed to authorized recipients.
Account Groups
The General Fixed Assets Account Group (unaudited) is used to account for the City's
fixed assets, other than those accounted for in proprietary funds.
The General Long-Ternl Debt Account Group is used to account for the City's long-ternl
debt, other than that accounted for in proprietary funds.
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CITY OF ALBERTVILLE, MINNESOTA
NOTES TO THE FINANCIAL STATEMENTS
Year Ended December 31, 2001
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NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)
C. Measurement Focus, Fixed Assets and Long-Term Liabilities
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The accounting and reporting treatment applied to the fixed assets and long-term liabilities
associated with a fund are detennined by its measurement focus. All govemmental funds are
accounted for on a spending or "financial flow" measurement focus. This means that only
CUlTent assets and current liabilities are generally included on their balance sheets. Their
reported fund balance (net current assets) is considered a measure of available spendable
resources. Govemmental fund operating statements present increases (revenues and other
financing sources) and decreases (expenditures and other financing uses) in net CUlTent
assets. Accordingly, they are said to present a summary of sources and uses of available
spendable resources during a period.
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Fixed assets used in governmental fund type operations (general fixed assets) are accounted
for in the General Fixed Assets Account Group, rather than in governmental funds. Public
domain ("infrastructure") general fixed assets--which are certain improvements other than
buildings, including roads, curbs and gutters, streets and sidewalks, drainage systems, and
lighting systems--are not capitalized by the City. No depreciation has been provided on
general fixed assets.
All fixed assets are valued at their historical cost or estimated historical cost if actual cost is
not available. Donated fixed assets are valued at their estimated t~lir value on the date
donated.
Because of their spending measurement focus, expenditure recognition for governmental
fund types is limited to exclude amounts represented by nonCUlTent liabilities. Since they do
not affect net current assets, such long-term amounts are not recognized as govemmental
fund type expenditures or fund liabilities. They are instead reported as liabilities in the
General Long-Term Debt Account Group.
The two account groups, General Fixed Assets and General Long-Tenn Debt, are not
"funds". They are concerned only with the measurement of financial position. They are not
involved with measurement of results of operations.
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All proprietary funds are accounted for on a flow of economic resources measurement focus.
This means that all assets and all liabilities (whether CUlTent or noncurrent) associated with
the fund's activity are included on the balance sheet. Their reported fund equity (net total
assets) is segregated into contributed capital and retained eamings components. Proprietary
fund type operating statements present increases (revenues) and decreases (expenses) in net
total assets.
Depreciation of all exhaustible fixed assets used by proprietary funds is charged as an
expensc agamst operations. Accumulated depreciation is rep0l1ed on the proprietary fund
balance sheet. Depreciation has been provided over the assets' estimated uscfullives using
the straight-line method. The estimated useful lives of the fixed assets range from five to
fifty years.
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CITY OF ALBERTVILLE, MINNESOTA
NOTES TO THE FINANCIAL STATEMENTS
Year Ended December 31,2001
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NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)
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D. Basis of Accounting
Basis of accounting refers to when revenues and expenditures or expenses are recognized in
the accounts and reported in the financial statements. Basis of accounting relates to the
timing of the measurement made, regardless of the measurement focus applied.
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All governmental funds are accounted for using the modified accrual basis of accounting, in
which revenues are recognized when they become measurable and available as net cunent
assets.
The City considers property taxes as available if they are collected within 60 days after year
end. A one-year availability period is used for revenue recognition for all other
governmental fund revenues. Expenditures are recorded when the related fund liability is
inclllTed. Principal and interest on generallong-tern1 debt are recorded as fund liabilities
when due or when amounts have been accumulated in the debt service fund for payments to
be made early in the following year.
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Major revenues that are susceptible to accrual include property taxes, special assessments,
intergovernmental revenues, charges for services, and interest on investments. Major
revenues that are not susceptible to accrual include licenses and pern1its, 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 delinquencies.
The City reports defened revenue on the combined balance sheet. Defen"ed revenues arise
when a potential revenue does not meet both the "measurable" and "available" criteria for
recognition in the cunent period. Defened revenues also arise when resources are received
by the City before it has a legal claim to them, or when grant monies are received prior to the
incunence of qualifying expenditures. In subsequent years, when both revenue recognition
criteria are met, or when the City has a legal claim to the resources, the liability for defened
revenue is removed from the combined balance sheet and the revenue is recognized.
Expenditures are generally recognized under the modified accrual basis of accounting when
the related fund liabilities are incuned. Exceptions to this rule include sick pay and principal
and interest on general long-term debt, which are recognized when due.
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All proprietary funds are accounted for using the accrual basis of accounting; revenues are
recognized when they are earned and expenses are recognized when they are incurred.
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CITY OF ALBERTVILLE, MINNESOTA
NOTES TO THE FINANCIAL STATEMENTS
Year Ended December 31,2001
NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)
E. Budgetary Data
The City Council adopts an annual budget. The amounts shown in the financial statements as
"budget" represent the original budgeted amount and all revisions made during the year. The
City follows these procedures in establishing the budgetary data reflected in the financial
statements.
1. Budget requests are submitted by all department heads to the City Administrator. The
City Administrator compiles the budget requests into an overall preliminary City budget.
2. The City Administrator presents the proposed budget to the City Council. The budget
resolution adopted by the City Council sets forth the budget at the function level for the
General Fund. There were no budget amendments in 2001.
3. F0ll11al budgetary integration is employed as a management control device during the
year for the General Fund. No budgets are adopted for Special Revenue Funds. F0ll11al
budgetary integration is not employed for Debt Service Funds because effective
budgetary control is altematively achieved through general obligation bond indenture
provisions. Budgetary control for Capital Projects Funds is accomplished through the use
of project controls.
4. The budget for the General Fund is adopted on a basis consistent with accounting
principles generally accepted in the United States of America. Annual appropriations
lapse at year end.
F. Encumbrances
Encumbrances outstanding at year-end expire and outstanding purchase orders are cancelled
and not reported in the financial statements.
As of December 31, 2001, no outstanding encumbrances existed.
G. Cash and Investments (Including Cash Equivalents) (See Note 3)
Cash balances from all funds are combined and invested to the extent available in authorized
investments. Earnings from such investments are allocated to the respective funds on the
basis of applicable cash balance participation by each fund.
Investments that have a remaining maturity of one year or less at the time of purchase are
stated at amortized cost. Long-term investments are those that have a remaining maturity of
over one year at the time of purchase and are stated at fair value.
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CITY OF ALBERTVILLE, MINNESOTA
NOTES TO THE FINANCIAL STATEMENTS
Year Ended December 31, 2001
NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)
G. Cash and Investments (Including Cash Equivalents) (See Note 3) (Continued)
For purposes of the Statement of Cash Flows of proprietary fund types, cash equivalents are
defined as shOli-term, highly liquid investments that are both:
a. readily convertible to known amounts of cash, or
b. so near their maturity that they present insignificant risk of changes in value because
of changes in interest rates.
The City's policy considers cash equivalents to be those that meet the above criteria and have
original maturities of three months or less.
H. Taxes Receivable
Delinquent taxes receivable represent the past six years of uncollected tax levies.
1. Special Assessments Receivable
Delinquent special assessments represent the past six years of uncollected special
assessments.
Deferred special assessments represent the principal portion of those assessments to property
owners for improvements made by the City and are to be paid in 2002 and years thereafter.
J. Loans Receivable
Loans receivable represent loans made to local businesses for the purpose of economic
development.
K. Deferred Revenue
Deferred revenue represents delinquent taxes, delinquent and deferred assessments
receivable, and loans receivable. This revenue is deferred until it is measurable and available
as net current assets.
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CITY OF ALBERTVILLE, MINNESOTA
NOTES TO THE FINANCIAL STATEMENTS
Year Ended December 31,2001
NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)
L. Vacation and Sick Leave
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The City compensates employees who resign or retire with due notice for unused vacation
and compensatory time. Employees may carryover vacation time from one vacation year to
another vacation year as establishcd by the employee's anniversary datc. Compensatory time
is accumulated at 1 Yz times the overtime hours worked in a two-week period. A maximum
of 40 hours of compensatory time may be accumulatcd.
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Full-time employees are entitled to sick leave at the rate of one day per month to a maximum
of 45 days or 360 hours. Hours accumulated in excess of the maximum are applied to the
City's sick leave incentive program. An employee earns one-fourth day paid vacation or
one-fourth days' pay in lieu of said vacation at the employee's option. This option is only
active and available when the beginning sick leave balance for each month is 45 days. The
cash in lieu option is paid in December of each year.
Vacation pay and sick pay are considered expenditures in the year due in the governmental
fund types, while in the proprietary fund types, vacation and sick pay are charged to expense
when earned.
M. Fund Equity
Fund equity is divided into sections as follows:
- Contributed capital represents fixed assets purchased by other funds and contributed to the
enterprise fund.
- Retained earnings of enterprise funds are subdivided as follows:
Reserved amounts are set aside by council resolution for specific expenses in future
periods.
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The unreserved portion ofretained earnings is available for expending in future periods.
- Fund balance accounts are subdivided as follows:
Reserved accounts represent those portions of fund equity not appropriable for
expenditure or legally separated for a future use.
Unreserved, designated accounts indicate the portion of fund balance which has been
designated for a specific purpose.
The unreserved, undesignated account is the p0l1ion of fund balance which is available
for budgeting and expending in future periods.
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CITY OF ALBERTVILLE, MINNESOTA
NOTES TO THE FINANCIAL STATEMENTS
Year Ended December 31, 2001
NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)
N. Revenues. Expenditures and Expenses
1. Revenues
Property taxes and special assessment principal and interest are recognized as revenue
when measurable and available.
Intergovemmental revenues are repOlied under the legal and contractual requirements of
the individual programs.
Licenses and pennits, charges for services, fines and forfeitures, and miscellaneous
revenues (except investment eamings) are recorded as revenues when measurable and
available. Investment eamings are recorded when eamed because they are measurable
and available.
2. Property Tax Collection Calendar
The City levies its property tax for the subsequent year during the month of December.
The property tax is recorded as revenue when it becomes measurable and available.
Wright 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 shO\vn 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, applying the
applicable tax rate to the tax capacity of individual properties, to arrive 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 of taxes
to be collected on each parcel of property to the County Treasurer in January of each
year.
The County Treasurer collects all taxes and is required to mail copies of all personal
property tax statements by February 15, and copies of all real estate tax statements by
April 15, of each year. Property owners are required to pay one-half of their real estate
taxes due by May 15 and the balance by October 15.
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CITY OF ALBERTVILLE, MINNESOTA
NOTES TO THE FINANCIAL STATEMENTS
Year Ended December 31,2001
NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)
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N. Revenues. Expenditures and Expenses (Continued)
2. Property Tax Collection Calendar (Continued)
I f taxes due May 15 are not paid on time, a penalty of 3 % is assessed on homesteaded
property and 7% on non-homesteaded property. Al1 additional I % penalty is added each
month the taxes remain unpaid, until October 15. If the taxes due May 15 arc 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 I,
further penalties are added. Penalties and interest apply to both taxes and special
assessments. There are some exceptions to the above penalties, but they are not material.
Within 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 within 60 days after
settlement, provided that after 45 days interest acemes.
3. Expenditures
Expenditure recognition for governmental fund types includes only amounts represented
by current liabilities. Since noncurrent liabilities do not affect net current assets, they are
not recognized as governmental fund expenditures or fund liabilities. They are reported
as liabilities in the General Long- T ernl Debt Account Group.
4. Expenses
Proprietary fund types recognize expenses when they arc incurred.
O. Interfund Transactions
Quasi-extemal transactions are accounted for as revenues, expenditures or expenses.
Transactions that constitute reimbursements to a fund for expenditures or expenses initially
made from it that are properly applicable to another fund are recorded as expenditures or
expenses in the fund that is reimbursed.
All other interfund transactions, except quasi-external and reimbursements, are reported as
transfers. Nonrecurring or nonroutine pennanent transfers of equity are reported as residual
equity transfers. All other interfund transfers are reported as operating transfers.
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CITY OF ALBERTVILLE, MINNESOTA
NOTES TO THE FINANCIAL STATEMENTS
Year Ended December 31,2001
NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)
P. Total Columns on General Purpose Statements
Total columns on the general purpose financial statements are captioned "memorandum
only" to indicate that they arc presented only to facilitate financial analysis. Data in these
columns do not present financial position, results of operations, or cash flows in COnf0l111ity
with accounting principles generally accepted in the United States of America. Interfund
eliminations have not been made in the aggregation of this data.
Q. Comparative Data
Comparative total data for the prior year have been presented in the accompanying financial
statements in order to provide an understanding of changes in the City's financial position
and operations. However, prior year totals by fund type have not been presented in each of
the statements since their inclusion would make the statements unduly complex and difficult
to read.
Comparative data have been restated to reflect reclassifications.
NOTE 2 - STEWARDSHIP_ COMPLIANCE AND ACCOUNTABILITY
A. Fund Balance Deficits
The folJowing funds had deficit fund balances at December 31,2001:
Special Revenue Fund -
CMIF
Debt Service Funds -
1988 Refunding Bonds
1996A G.O. TIF Bonds
2000 G.O. Sewer Revenue Bonds
Capital Projects Funds -
TIF #6 - Fraser Steel
TIF #8 - Vetsch Custom Cabinets
TIF #10 - Mold-Tech
TIF #11 - Land of Lakes Tile
Barthel Industrial Drive & 52nd Street
Summerfield Addition
NE Sewer and Water Extension
CSAH 19/37 Intersection
Parkside 3rd Addition
Parkside 4th Addition
Cottages of Albertville TIF # 7
$ 2,939
158,077
39,914
82,465
537
401
10,486
18,847
112,562
23,331
9,537
104,246
19,066
31,963
30,437
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CITY OF ALBERTVILLE, MINNESOTA
NOTES TO THE FINANCIAL STATEMENTS
Year Ended December 31,2001
NOTE? - STEWARDSHIP, COMPLIANCE AND ACCOUNTABILITY (Continued)
A. Fund Balance Deficits (Continued)
Capital Projects Funds - (Continued)
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 Crossings
Fire Hall
57th Street Improvement
CSAH 19 Improvement
Albertville Villas
Mooney Addition
Traffic Light
Kolleville Estates
SW Lift Station
Towne Lakes
Heuring Meadows
Towne Lakes Lift Station
$ 2,890
129,282
122,962
5,617
6,220
19,690
25,086
2,845
23,780
140,753
65,428
187,506
10,449
287,905
24,764
379,064
95,942
31,157
11,119
These deficits will be eliminated by future levies, collections of special assessments,
operating transfers, and developer reimbursements.
B. Expenditures in Excess of Appropriations
Expenditures exceeded appropriations in the following funds for the year ended
December 31, 2001:
Expenditures
Appropriations
General Fund
Special Revenue Funds:
Capital Outlay Reserves Fund
Park Fund
CMIF Fund
$ 1,378,068
$ 1,316,501
95
26,521
123
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CITY OF ALBERTVILLE, MINNESOTA
NOTES TO THE FINANCIAL STATEMENTS
Year Ended December 31,2001
NOTE 3 - DETAILED NOTES ON ALL FUNDS AND ACCOUNT GROUPS
A. Assets
1. Cash and Investments (Including Cash Equivalents)
Cash balances of the City's funds are combined (pooled) and invested to the extent
available in various investments authorized by Minnesota Statutes. Each fund's portion
of this pool (or pools) is displayed on the financial statements as "cash and investments
(including cash equivalents)." For purposes of identifying risk of investing public funds,
the balances and related restrictions are summarized below:
a. Deposits - A1innesota Statutes require that all deposits with financial institutions must
be collateralized in an amount equal to 110% of deposits in excess of Federal
Depository Insurance Corporation (FDIC) insurance.
Category 1 - Deposits collateralized by FDIC and those deposits collateralized with
securities held by the City or by its agent in the City's name.
Category 2 - Collateralized with securities held by the pledging financing institution's
trust department or agent in the City's name.
Category 3 - Uncollateralized, including amounts which are collateralized with
securities held by the pledging financial institution, or by its trust
department or agent, but not in the City's name; or deposits which are
collateralized but collateral not perfected.
b. Investments - lv1innesota 5'tatutes authorize the City to invest in obligations of the
U.S. Treasury, agencies and instrumentalities, shares of investment companies whose
only investments are in the forementioned securities, obligations of the State of
Minnesota or its municipalities, bankers' acceptances, future contracts, repurchase
and reverse repurchase agreements, and commercial paper of the highest quality with
a maturity of no longer than 270 days. Investments held by the City at year end
classified as to credit risk are as follows:
Category 1 - Insured or registered, with securities held by the City's agent in the
City's name.
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CITY OF ALBERTVILLE, MINNESOTA
NOTES TO THE FINANCIAL STATEMENTS
Year Ended December 31, 2001
NOTE 3 - DETAILED NOTES ON ALL FUNDS AND ACCOUNT GROUPS (Continued)
A. Assets (Continued)
1. Cash and Investments (Including Cash Equivalents) (Continued)
b. Investments - (Continued)
Category 2 - Uninsured and unregistered, with securities held by the counterparty's
trust department or agent in the City's name.
Category 3 - Uninsured and unregistered, with securities held by the counterparty, or
by its trust department or agent but not in the City's name.
Canying
Amount!
Category Fair
2 3 Value
U.S. Govemment
Securities $ 943,373 $ 0 $ 0 $ 943,373
Negotiable CD's 314,503 0 0 314,503
Total $ 1,257,876 $ 0 $ 0 1,257,876
Not Subject to Risk Classification:
Broker Money Market Accounts
289
Cash in Trust
Restricted Cash in Trust
Total Deposits (Note 3 A.1.a.)
850,661
85,060
4,344,188
Total Cash and Investments
(Including Cash Equivalents)
$ 6,538,074
This amount is classified on the combined balance sheet as follows:
Cash and Investments
(Including Cash Equivalents)
Cash in Trust
Restricted Cash in Trust
Cash Overdraft
$ 8,536,223
850,661
85,060
(2,933,870)
Total
$ 6,538,074
For the year ended December 31,2001, investment revenue was $ 270,489.
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CITY OF ALBERTVILLE, MINNESOTA
NOTES TO THE FINANCIAL STATEMENTS
Year Ended December 31,2001
NOTE 3 - DETAILED NOTES ON ALL FUNDS AND ACCOUNT GROUPS (Continued)
A. Assets (Continued)
2. Due from Other Governmental Units
The following is a summary of due from other govemmental units at December 31, 2001:
Ice Arena
Wright Joint
Fund County Powers Total
General $ 11,064 $ 0 $ 11 ,064
Debt Service 123,977 0 123,977
Enterpri se 53,443 83,333 136,776
Total $ 188,484 $ 83,333 $ 271,817
3. Due from/to Other Funds
The following is a summary of interfund receivables and payables at December 31,2001:
Fund Due To Due From
General $ 40,000 $ 0
Ente111rise - Stornl Water 0 40,000
Total $ 40,000 $ 40,000
4. Notes Receivable
The notes receivable in the Revolving Loan Special Revenue Fund represent loans to area
businesses for the purpose of economic development. The notes are due in monthly
installments through April 2010; interest at 1.00 to 7.00 percent per annum. The balances
at December 31, 2001 totaled $ 107,547.
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CITY OF ALBERTVILLE, MINNESOTA
NOTES TO THE FINANCIAL STATEMENTS
Year Ended December 31, 2001
NOTE 3 - DETAILED NOTES ON ALL FUNDS AND ACCOUNT GROUPS (Continued)
A. Assets (Continued)
5. Fixed Assets
The (ollowing is a summary of changes in general fixed assets (unaudited):
Balance
1-1-01
Disposals
Balance
12-31-01
Additions
Land $
Buildings
Improvements Other
than Buildings
Machinery and Equipment
35,566
120,218
$
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$
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$ 35,566
120,218
78,169
864,130
o
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o
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78,169
864,130
Total
$ 1,098,083
$
o
$
o
$ 1,098,083
A summary of proprietary fund type fixed assets at December 31, 2001 is as follows:
Sanitary
Sewer Water
Fund Fund Totals
Land $ 190,269 $ 0 $ 190,269
Sewer System 3,869,925 0 3,869,925
Water System 0 436,894 436,894
Equipment 141,753 13.532 155,285
Construction in Progress 3,483,505 0 3,483,505
Total Fixed Assets 7,685,452 450,426 8,135,878
Less: Accumulated Depreciation (1,003,971) (19,295) (1,023,266)
Net Fixed Assets $ 6,681,481 $ 431,131 $ 7,112,612
B. Liabilities
1. Defined Benefit Pension Plans - Statewide
a. Plan Description
All full-time and ce11ain part-time employees of the City of Albertville, are covered
by defined benefit plans administered by the Public Employees Retirement
Association of Minnesota (PERA). PERA administers the Public Employees
Retirement Fund (PERF) which is a cost-sharing, multiple-employer retirement plan.
This plan is established and administered in accordance with Minnesota Statutes,
Chapters 353 and 356.
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CITY OF ALBERTVILLE, MINNESOTA
NOTES TO THE FINANCIAL STATEMENTS
Year Ended December 31, 2001
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NOTE 3 - DETAILED NOTES ON ALL FUNDS AND ACCOUNT GROUPS (Continued)
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B. Liabilities (Continued)
a. Plan Description (Continued)
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1. Defined Benefit Pension Plans - Statewide (Continued)
PERF members belong to either the Coordinated Plan or the Basic Plan. Coordinated
Plan members are covered by Social Security and Basic Plan members are not. All
new members must participate in the Coordinated Plan.
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PERA provides retirement benefits as well as disability benefits to members, and
benefits to survivors upon death of eligible members. Benefits are established by
State Statute, and vest after three years of credited service. The defined retirement
benefits are based on a member's highest average salary for any five successive years
of allowable service, age, and years of credit at termination of service.
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Two methods are used to compute benefits for PERF's Coordinated and Basic Plan
members. The retiring 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 remaining year. The annuity
accrual rate for a Coordinated 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.
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For PERF members whose annuity is calculated using Method 1, a full milluity is
available when age plus years of service equal 90. A reduced retirement annuity is
also available to eligible members seeking early retirement.
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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 joint and survivor
annuity options available which will reduce the monthly normal annuity amount,
because the annuity is payable over joint lives. Members may also leave their
contributions in the fund upon tennination of public service in order to qualify for a
deferred annuity at retirement age. Refunds of contributions are available at any time
to members who leave public service, but before retirement benefits begin.
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CITY OF ALBERTVILLE, MINNESOT A
NOTES TO THE FINANCIAL STATEMENTS
Year Ended December 31,2001
NOTE 3 - DETAILED NOTES ON ALL FUNDS AND ACCOUNT GROUPS (Continued)
B. Liabilities (Continued)
1. Defined Benefit Pension Plans - Statewide (Continued)
a. Plan Description (Continued)
The benefit provisions stated in the previous paragraphs of this section are current
provisions and apply to active plan participants. Vested, temlinated employees who
are entitled to benefits but are not receiving them yet are bound by the provisions in
effect at the time they last terminated their public service.
PERA issues a publicly available financial report that includes financial statements
and required supplementary information for PERF. That report may be obtained by
writing to PERA, 60 Empire Drive #200, St. Paul, Minnesota, 55103-1855 or by
calling (651) 296-7460 or ] -800-652-9026.
b. Funding Policy
Minnesota Statutes Chapter 353 sets the rates for employer and employee
contributions. These statutes are established and amended by the state legislature.
The City makes annual contributions to the pension plan equal to the amount required
by state statutes. PERF Basic Plan members and Coordinated Plan members are
required to contribute 8.75 percent and 4.75 percent, respectively, of their annual
covered salary. The City of Albertville is required to contribute the following
percentages of alillual covered payroll: 11.43 percent for Basic Plan PERF members
and 5.18 percent for Coordinated Plan PERF members. Member and employer
contribution rates for Basic and Coordinated members \vill increase by 0.35 percent
effective January 2002. The City's contributions to the Public Employees Retirement
Fund for the years ending December 31, 2001, 2000, and 1999 were $ 25,056,
$ 17,868, and $ 6,649, respectively. The City does not have police or fire employees.
The City's contributions were equal to the contractually required contributions for
each year as set by state statute.
2. Deferred Revenue
Special Debt Capital
General Revenue Service Proj ects Total
Taxes Receivable -
Delinquent $ 41.259 $ 0 $ 7,976 $ 0 $ 49,235
Special Assessments
Receivable -
Deferred 0 0 875,606 ] 0,000 885,606
Delinquent 0 0 286,834 0 286,834
Loans Receivable 0 107,547 0 0 107,547
Total $ 41,259 $ 107,547 $ 1,170,416 $ 10,000 $ 1,329,222
28
CITY OF ALBERTVILLE, MINNESOTA
NOTES TO THE FINANCIAL STATEMENTS
Year Ended December 31,2001
NOTE 3 - DETAILED NOTES ON ALL FUNDS AND ACCOUNT GROUPS (Continued)
B. Liabilities (Continued)
3. Long-Term Debt
The following is a summary oflong-term debt transactions for the year ended
December 31,2001:
General
Obligation
General
Obligation
Special Tax Capital
Revenue Assessment Increment Lease
$ 4.521,623 $ 2.095.000 $ 225.000 $ 95.477
0 0 0 0
Balance - January I
S 80,000
Additions 0
Retirements (20,000) (76,636)
(480,000) (30,000) (21,793)
Balance - December 31 S 60.000 $ 4,444,987
$ 1,6 15,000 $ 195,000 $ 73,684
General Obligation Bonds:
$ 180,000 General Obligation Refunding Bonds,
Series 1993, due in annual installments of$ 15,000 to
$ 20,000 through March 1,2004; interest at 3.00 to
5.00 percent
Outstanding
December 31,2001
$ 60,000
Revenue Bonds:
$ 1,454,514 General Obligation Revenue Notes - PF A, due
to Minnesota Public Facilities Authority in semi-annual
installments of $ 19,707 to $ 49,965 through
August 20, 2014; interest at 3.32 percent
$ 1,044,987
$ 860,000 Public Faciltiy Lease Revenue Bonds,
Series 1999, due in annual installments of $ 10,000 to
$ 70,000 through Febmary 1,2019; interest at 5.00
to 5.60 percent
850,000
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Total
$ 7,017,100 I
(628,4':).
$ 6,388,671 I
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CITY OF ALBERTVILLE, MINNESOTA
NOTES TO THE FINANCIAL STATEMENTS
Year Ended December 3 I, 200 I
NOTE 3 - DETAILED NOTES ON ALL FUNDS AND ACCOUNT GROUPS (Continued)
B. Liabilities (Continued)
3. Long-Tenn Debt (Continued)
Revenue Bonds: (Continued)
$ 2,550,000 General Obligation Sewer Revenue Bonds,
Series 2000A, due in annual installments of $ 50,000
to $ 365,000 through Febmary 1,2016; interest at 4.50
to 5.25 percent
Total Revenue Bonds
General Obligation Special Assessment Bonds:
5) 215,000 Refunding Bonds of 1989, due in annual
installments of $ 5,000 to S 25,000 through September 1,
2003; interest at 7.00 to 7.75 percent
$ 350,000 General Obligation Improvement Bonds,
Series 1992A, due in annual installments of S 15,000
to $ 35,000 through December 30,2004; interest at
5.70 percent
$ 675,000 General Obligation Improvement Refunding
Bonds, Series I993A, due in annual installments of
$ 20,000 to $ 95,000 through Febmary 1, 2006; interest
at 3.40 to 5.75 percent
$ 1,760,000 General Obligation Improvement Bonds,
Series 1999A, due in annual installments of $ 40,000 to
$ 385,000 through Febmary 1,2015; interest at
4.10 to 5.20 percent
Total General Obligation Special Assessment Bonds
General Obligation Tax Increment Bond:
$ 400,000 General Obligation Tax Increment Bonds,
Series 1996A, due in annual installments of $ 25,000
to S 95,000 through February 1,2008; interest at 4.25
to 5.40 percent
Outstanding
December 31,2001
$
$
2,550,000
4,444,987
$
25,000
95,000
] 00,000
1,395,000
$
1,615,000
S
195,000
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CITY OF ALBERTVILLE, MINNESOTA
NOTES TO THE FINANCIAL STATEMENTS
Year Ended December 3 L 2001
NOTE 3 - DETAILED NOTES ON ALL FUNDS AND ACCOUNT GROUPS (Continued)
B. Liabilities (Continued)
3. Long-Term Debt (Continued)
The annual requirements to amortize all bonded debt outstanding as of December 31,
2001, including interest payments of $ 1,807,967 are:
General
Obligation
Year Ending General Special Tax
December 31 Ob ligation Revenue Assessment Increment Total
2002 $ 22.490 $ 574,984 S 517,175 $ 39,420 $ 1,154,069
2003 21,500 609,497 487,035 37,920 1,155,952
2004 20,500 626,8 I 2 183,230 36,420 866,962
2005 0 417,603 140,860 29,995 588,458
2006 0 427 ,441 81,600 28,645 537,686
Thereafter 0 3,266,000 495,722 58,105 3,819,827
Total $ 64,490 $ 5,922,337 $ 1 ,905,622 $ 230,505 $ 8,122,954
4. Capital Lease
The City entered into a capital lease agreement for the purpose of financing a
tractor/loader. The lease requires five annual payments of $ 27,617 beginning
November 28,2001.
Minimum future lease payments under the capital lease with the present value of
minimum lease payments as of December 31, 2001 follows:
Year Ended December 31
2002
2003
2004
Net Minimum Lease Payments
Less: Amount Representing Interest
$ 27,617
27 ,617
27,617
82,851
(9,167)
Present Value of Minimum Lease Payments
$ 73,684
C. Fund Equity
Fund equity balances are classified as follows to reflect the limitations and restrictions of the
respective funds:
31
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CITY OF ALBERTVILLE, MINNESOTA
NOTES TO THE FINANCIAL STATEMENTS
Year Ended December 31,2001
NOTE 3 - DETAILED NOTES ON ALL FUNDS AND ACCOUNT GROUPS (Continued)
C. Fund Equity (Continued)
1. Fund Balance -
Fund balance is comprised of the following components:
Special Debt Capital
General Revenue Service Projects Total
Reserved -
Reserved for Debt Service $ 0 $ 0 $ 863,706 $ 0 $ 863.706
Unreserved -
Designated for Operating
Capital 700.000 0 0 0 700.000
Designated for Debt Service 0 0 177.535 0 177,535
Designated for Capital Outlay 0 244,553 0 692,489 937,042
Undesignated 317.834 3,663,726 (280,456) (1,933,872) 1,767,232
Total Fund Balance $ 1,017,834 $ 3,908,279 $ 760,785 $ (1,241,383) $ 4,445,515
2. Contributed Capital -
Contributed capital in the enterprise funds represents fixed assets which were purchased
by other funds and transfelTed to the enterprise funds. Changes in contributed capital for
the year are as follows:
Contributed Capital - January 1,2001
Add: Assets Contributed During 2001
Contributed Capital - December 31, 2001
$ 3,752,497
2,142,486
$ 5,894,983
NOTE 4 - CONSTRUCTION COMMITMENTS
The City has entered into contracts for the following improvement projects.
Fund/Project
Proj ect
Authorization
Expended
Through
12/31/01
Commitment
Southwest Lift Station Project
WWTF Expansion Project
S 127,565
2,764,812
$ 116,103
2,741,113
$
11,462
23,699
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CITY OF ALBERTVILLE, MINNESOTA
NOTES TO THE FINANCIAL STATEMENTS
Year Ended December 31,2001
NOTE 5 - SEGMENT INFORMATION
The City maintains Water, Sanitary Sewer, and Stonn Water Enterprise Funds. Segment
infomlation for the year ended December 3 I, 2001 is as follows:
Sanitary Water Stonn
Sewer Fund Water Total
Operating Revenues $ 314,294 $ 406,753 $ 94,234 $ 815,281
Depreciation 85,770 9,633 0 95,403
Operating Income 70,888 352,020 91,574 514,482
Net Income 32,333 387,699 103,473 523,505
Net Working Capital (85,479) 891,422 421.646 1,227,589
Total Assets 6,765,359 1,413,477 421,646 8,600,482
Debt Outstanding 1,044,987 0 0 1,044,987
Total Equity 5,6 I 3,602 1,322,553 421,646 7,357,801
NOTE 6 - TAX INCREMENT FINANCING
The City of Albcliville is the administering authority for the following tax increment financing
districts:
Name of District: Tax Increment Financing District # 7
Type of District:
Authorizing Law:
Housing District
Milmesota T.l.F. Act, Chapter 469.174, Subd. 11, and
469.1761
1997
107
25 years after the date of receipt of the first increment
Year Established:
County District Number:
Duration of District:
Original Tax Capacity
Current Tax Capacity
Captured Tax Capacity -
Retained by City
$
878
63,360
$
62,482
Type of Notes Issued:
"Pay as You Go" - The City pays the developer for tax
increments received in the current year.
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CITY OF ALBERTVILLE, MINNESOTA
NOTES TO THE FINANCIAL STATEMENTS
Year Ended December 31,2001
NOTE 6 - TAX INCREMENT FINANCING (Continued)
Name of District: Tax Increment Financing District # 8
Type of District:
Authorizing Law:
Year Established:
County District Number:
Duration of District:
Original Tax Capacity
Cunent Tax Capacity
Captured Tax Capacity -
Retained by City
Type of Notes Issucd:
Economic Development
Minnesota T.I.F. Act, Chapter 469.174, Subd. 12
1997
108
Earlier of 9 years aftcr the date ofreceipt of the first
increment, or 11 years after the date of approval of the
TIF plan
$
312
7,513
s
7,201
"Pay as You Go" - The City pays the developer for tax
incrcments received in the current year.
Namc of District: Tax Increment Financing District # 9
Type of District:
Authorizing Law:
Year Established:
Duration of District:
Economic Development
Minnesota T.I.F. Act, Chapter 469.174, Subd. 12
1997
Earlier of 9 years after the date of receipt of the first
increment, or 11 years after the date of approval of the
TIF Plan
Original Tax Capacity S 3,954
Current Tax Capacity 13,623
Captured Tax Capacity -
Retained by City S 9,669
Type of Notes Issued:
"Pay as You Go" - The City pays the developer for tax
increments received in the cunent year.
34
CITY OF ALBERTVILLE, MINNESOTA
NOTES TO THE FINANCIAL STATEMENTS
Year Ended December 31, 2001
NOTE 6 - TAX INCREMENT FINANCING (Continued)
Name of District: Tax Increment Financing District # 10
Type of District:
Authorizing Law:
Year Establis11ed:
Duration of District:
Economic Development
Minnesota TJ.F. Act, Chapter 469.174, Subd. 12
1998
Earlier of 9 years after the date ofreceipt of the first
increment, or 11 years after the date of approval of the
TIF Plan
Original Tax Capacity
Cunent Tax Capacity
Captured Tax Capacity -
Retained by City
$
1,135
14,922
s
13.787
Type of Notes Issued:
"Pay as You Go" - The City pays the developer for tax
increments received in the cunent year.
Name of District: Tax Increment Financing District # 11
Type of District:
Authorizing Law:
Year Established:
Duration of District:
Economic Development
Minnesota T.I.F. Act, Chapter 469.174, Subd. 12
1999
Earlier of 9 years after the date ofreceipt of the first
increment, or 11 years after the date of approval of the
TIF Plan
Original Tax Capacity
Current Tax Capacity
Captured Tax Capacity -
Retained by City
$
2,738
31,157
$
28,419
Type of Notes Issued:
"Pay as You Go" - The City pays the developer for tax
increments received in the cunent year.
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CITY OF ALBERTVILLE, MINNESOTA
NOTES TO THE FINANCIAL STATEMENTS
Year Ended December 31, 200 I
NOTE 7 - RISK MANAGEMENT
The City is exposed to various risk of loss related to torts; theft of, damage to and destmction of
assets; errors and omissions; injuries to employees; and natural disasters. In order to protect
against these risks of loss, the City purchases commercial insurance through the League of
Minnesota Cities Insurance Tmst, a public entity risk pool. This pool currently operates
common risk management and insurance programs for municipal entities. The City pays an
annual premium to the League for its insurance coverage. The League of Mil me sot a Cities
Insurance Tmst is self-sustaining through commercial companies for excess claims. The City is
covered through the pool for any claims incurred but unreported, however, retains risk for the
deductible p0l1ion of its insurance policies. The amounts of these deductibles are considered
immaterial to the financial statements.
During the year ended December 31, 2001, there were no significant reductions in insurance
coverage from the prior year. Settled claims have not exceeded the City's commercial coverage
in any of the past three years.
The City's workers compensation insurance policy is retrospectively rated. With this type of
policy, final premiums are detem1ined after loss experience, workers compensation rates and
salaries for the year are known. The final premium adjustment was recorded in the year the
adjustment was made.
NOTE 8 - CONDUIT DEBT OBLIGA nONS
Conduit debt obligations are certain limited-obligation revenue bonds or similar debt instruments
issued for the express purpose of providing capital financing for a specific third party. The City
has issued Revenue Bonds to provide funding to private-sector entities for projects deemed to be
in the public interest. 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. Accordingly,
the bonds are not reported as liabilities in the financial statements of the City.
As of December 31,2001, the following issues were outstanding:
Name
Date of Issue
Original
Amount
Outstanding Balance
December 31. 2001
Cottages of Albertville -
Multi Family Housing
Revenue Bonds. Series J 999A
Taxable Multi Family Housing
Revenue Bonds. Series 199913
Subordinated I'vlulti Family
Housing Revenue Bonds,
Series J 999C
September 23, 1999
s
3.230.000
$
3.230.000
85.000
50.000
425.000
425.000
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CITY OF ALBERTVILLE. MINNESOTA
GENERAL FUND
ST A TEMENT OF REVENUES, EXPENDITURES, AND CI-IANGES IN FUND BALANCE _
BUDGET AND ACTUAL
Year Ended December 31,2001
With Comparative Totals for the Year Ended December 31, 2000
Over
(Under) 2000
Budget Actual Budget Actual
REVENUES:
Taxes -
General Property Tax $ 1.042.719 $ 1,030,736 $ (11,983) $ 673 ,683
Excess Tax Increments 0 8,322 8,322 0
Total Taxes 1.042.719 1,039,058 (3,661) 673.683
Licenses and Pennits -
Liquor and Beer Licenses I 3.400 9,350 ( 4,050) 11.400
Building Pennits 75.000 280,304 205,304 145,332
Business Pem1its 12.000 16,670 4.670 6.425
SIgn Permits 4.200 150 (4.050) 2.925
Other Licenses 200 225 25 270
Total LIcenses and Permits l04.800 306,699 201.899 166,352
Intergovernmental -
Local Government Aid 89,592 89,592 0 84,109
HACA 138.190 138,190 0 138,157
Fire Aid 12,500 19.934 7.434 14.476
Police Aid 8,000 12,575 4.575 6,73<)
Other State and County Aids 13,500 12,601 (899) 14,995
T otalIntergovernmental Revenue 261.782 272,892 11,110 258,476
Charges for Services -
Fire Protection Fees 45,000 37,514 (7,486) 48,573
Special Assessment Searches 600 1,160 560 660
Park Rental Fees 2.000 19.981 17.981 1,950
Other Charges for SerVIces I. 700 11,292 9.592 20,338
Total Charges for Services 49.300 69,947 20.647 71.521
Fines, Forfeitures and Penalties 100 0 ( 1 00 ) 0
Miscellaneous Revenue -
Investment Income 25,000 58,018 33.018 15.243
Lease Payments 2.800 2,048 (752) 2.4n
Contributions and Donations 0 21,127 21.127 0
Other Revenues 0 11.005 11,005 6,920
Total MIscellaneous 27 ,800 92,198 64,398 24,59J
TOTAL REVENUES 1.486.501 L780.794 294.293 1.194.623
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CITY OF ALBERTVILLE, MINNESOTA
GENERAL FUND
STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCE -
BUDGET AND ACTUAL
Y car Ended December 31, 2001
With Comparative Totals for the Y car Ended December 31, 2000
(Continued)
Over
(Under) 2000
Budget Actual Budget Actual
EXPENDITURES:
General Govemment:
Mayor and Council -
Personal Services $ 12,472 $ 11,295 $ (1,177) $ 12,487
Supplies 1,600 588 (1,012) 241
Other Services and Charges 20,800 25,340 4,540 14,312
Total Mayor and Council 34,872 37,223 2,351 27 ,040
City Clcrk- Treasurer and City Administrator -
Personal Services 135,327 133,446 (1.881) 106,811
Supplies 6.000 5,262 (738) 5,347
Other Services and Charges 24.645 24,368 (277) 2 1.2 64
Capital Outlay 12.000 7,279 (4.721) 13.499
Total Clerk-Treasurer and City
Administrator 177.972 170,355 (7,617) 146,921
Elections -
Other ServIces and Charges 0 0 0 3.631
Assessing -
Other Services and Charges 13.000 13,431 431 11,190
Legal -
Other Services and Charges 20,000 18,089 (1,911) 22.889
Engineer -
Other Services and Charges 40,000 192,651 152.651 86.042
Planning and Zoning -
Personal Services 17,993 2,379 (15,614) 1,180
Supplies 700 2,217 1,517 239
Other Services and Charges 25,500 16,898 (8,602) 34.492
Total Planning and Zoning 44,193 21,494 (22,699) 35,911
General Govemment Buildings -
Supplies 1,500 1,091 ( 409) 1,510
Other Services and Charges 18,200 53.620 35,420 17 .160
Capital Outlay 4,500 4,559 59 128.045
Total General Govemment
Buildings 24.200 59.270 35.070 146.715
Total General Govemment 354,237 512.513 158.276 480,339
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CITY OF ALBERTVILLE, MINNESOTA
GENERAL FUND
ST A TEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCE -
BUDGET AND ACTUAL
Year Ended December 31. 200]
With Comparative Totals for the Year Ended December 31,2000
(Continued)
EXPENDITURES:
Public Safety:
Police Protection -
Other Services and Charges
Over
(Under) 2000
Budget Actual Budget Actual
$ 233,600 $ 233,600 S 0 $ I] 1,996
42,605 55,282 ]2,677 33,095
8,975 6,452 (2,523) 9,385
] 8,91 0 26,695 7,785 21.872
99,490 12.153 (87,337) 41,719
169,980 100,582 (69,398) ] 06,071
3,000 2,105 (895) 1,908
406,580 336,287 (70,293 ) 219,975
Fire Protection -
Personal Services
Supplies
Other Services and Charges
Capital Outlay
Total fire Protection
Animal Control -
Other Services and Charges
Total Public Safety
Public Works:
Streets and Highways -
Personal Services
Supplies
Other ServIces and Charges
Capital Outlay
Total Streets and Highways
Total Public Works
60,666 60,942 276 52,236
33,750 22,930 (] 0,820) 13337
61.021 5 L033 (9,988) 29,2] 9
155,000 188,081 33,081 236,203
310,437 322,986 12,549 330,995
38,000 37,65 I ( 349) 38392
348,437 360,637 ]2,200 369387
Street LIghting -
Other Services and Charges
Sanitation:
Recycling -
Supplies
Other Services and Charges
Total SanitatIon
o
23,000
23,000
o
21.535
21.535
o
(1,465)
(1,465 )
2,28]
20,580
22,861
Culture and Recreation:
Parks -
Personal Services
Supplies
Other Services and Charges
Capital Outlay
Total Culture and Recreation
63,006 63,628 622 5L3]6
4.1 00 2,440 (1,660) 3,233
20,875 ] ] 383 (9,492) 18.140
65,966 40.1 77 (25,789) 37,743
153,947 ] 17,628 (36,3] 9) ] ]0,432
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CITY OF ALBERTVILLE, MINNESOTA
GENERAL FUND
STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCE -
BUDGET AND ACTUAL
Year Ended December 31, 2001
With Comparative Totals for the Year Ended December 31, 2000
(Continued)
Debt Service:
Principal
Interest
Total Debt Service
Over
(Under) 2000
Budget Actual Budget Actual
$ 200 $ 0 $ (200) $ 3,181
5,100 1,851 (3,249) 2,181
5,300 1,851 (3,449) 5,362
25,000 21,793 (3,207) 27,617
0 5,824 5.824 0
25.000 27,617 2.617 27,617
1.316.501 1,378,068 61.567 1,235,973
170,000 402.726 232.726 (41,350)
0 10,950 10.950 3,056
0 0 0 123,094
0 0 0 144,996
(15,000) (15,000) 0 0
(15,000) (4,050) 10,950 271,146
EXPENDITURES: (Continued)
Econ0l111c Development:
Supplies
Other Services and Charges
Total Economic Development
TOTAL EXPENDITURES
EXCESS OF REVENUES OVER
(UNDER) EXPENDITURES
OTHER FINANCING SOURCES (USES):
Sale of General Fixed Assets
Capital Lease Proceeds
Operating Transfer In
Operatll1g Transfer Out
Total Other Financing Sources (Uses)
EXCESS OF REVENUES AND OTHER
FINANCING SOURCES OVER EXPENDITURES
AND OTHER FINANCING IJSES $ 155,000
398,676
$ 243.676
229,796
FUND BALANCE, January 1
619,158
389,362
FUND BALANCE. December 31
$ 1,017,834
$ 619,158
Fund Balance:
Unreserved -
Designated for Capital Outlay
Unelesignateel
Total Fund Balance (Deficit)
244,553 0 0
0 486,141 49,656
244,553 486,141 49,656
$ 244,553 $ 486,141 $ 157,203
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CITY OF ALBERTVILLE, MINNESOTA
SPECIAL REVENUE FUNDS
COMBINING BALANCE SHEET
December 31, 2001
With Comparative Totals for December 31, 2000
ASSETS
L 102 201 203
Capi tal Revolving
Outlay Park Loan
Reserves Fund Fund
$ 244,553 $ 486,141 $ 49,656
0 0 107,547
$ 244,553 $ 486,141 $ 157,203
Cash anel Investments
Notes Receivable
TOTAL ASSETS
LIABILITIES AND FUND BALANCE
Cash Overdraft
Accounts Payable
Defen-eel Revenue
Total Liabilities
$
$
$
o
o
107,547
107,547
o
o
o
o
o
o
o
o
TOTAL LIABILITIES AND
FUND BALANCE
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CITY OF ALBERTVILLE, MINNESOTA
SPECIAL REVENUE FUNDS
COMBINING STATEMENT OF REVENUES, EXPENDITURES
AND CHANGES IN FUND BALANCE
Year Ended December 31, 2001
With Comparative Totals for the Year Ended December 31,2000
REVENUES:
Intergovernmental Revenues -
State Grants
Charges for Services -
Park Dedication Fees
Sewer Availability Charges
Trunk Access Charges
Miscellaneous -
Investment Income
Donations
Loan Repayments and Other
Total Revenues
102 L 201 203
Capital Revolving
Outlay Park Loan
Reserves Fund Fund
$ 0 $ 0 $ 0
0 91,049 0
0 0 0
0 0 0
10,284 20,845 1,654
0 13,699 0
0 0 20,443
10,284 125,593 22,097
EXPENDITURES:
Culture and Recreation -
Planning Contract Services
Capital Outlay
Miscellaneous -
Interest
Total Expenditures
0 0 0
0 26,521 0
95 0 0
95 26,521 0
10,189 99,072 22,097
0 0 0
0 0 0
0 0 0
EXCESS OF REVENUES OVER
(UNDER) EXPENDITURES
OTHER FINANCING SOURCES (USES):
Operating Transfers In
Operating Transfers Out
Total Other Financing Sources (Uses)
EXCESS OF REVENUES AND OTHER
FINANCING SOURCES OVER (UNDER)
EXPENDITURES AND OTHER FINANCING USES
10,189
99,072
22,097
FUND BALANCE (DEFICIT) - January I
234,364
387,069
27,559
FUND BALANCE (DEFICIT) - December 31
$ 244,553
$ 486,141
$ 49,656
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CITY OF ALBERTVILLE, MINNESOTA
DEBT SERVICE FUNDS
COMBINING BALANCE S1-IEET
December 31, 2001
With Comparative Tota]s for December 31, 2000
300 ~
317 --1 l
318
322
1992
Closed 1988 1989 Sewer
Bond Refunding Refunding Trunk
Issues Bonds Bonds Bonds
ASSETS
Cash and Investments $ 177,371 $ 0 $ 35,396 $ 65,738
Cash in Trust 0 0 0 0
Restricted Cash in Trust 0 0 0 0
Taxes Receivable -
De]inquent 391 27 475 241
Special Assessments Receivab]e -
Deferred ],850 20,569 0 31,047
Delinquent 0 0 0 162
Due from Other Governmenta] Units 164 16 0 0
TOT AL ASSETS S 179.776 $ 20.612 $ 35,871 $ 97,188
LIABILITIES AND FUND BALANCE
Liabilities:
Cash Overdraft $ 0 $ 158,093 $ 0 $ 0
Deferred Revenue 2,241 20,596 475 31,450
Tota] Liabilities 2,241 178,689 475 31,450
Fund Balance:
Reserved for Debt Service 0 0 35,396 65,738
Unreserved -
Designated for Debt Service 177,535 0 0 ()
Undesignated 0 (158,077) 0 0
Tota] Fund Ba]ance (Deficit) 177,535 (158,077) 35,396 65,738
TOTAL LIABILITIES
AND FUND BALANCE $ 179.776 $ 20.612 $ 35,871 $ 97,188
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CITY OF ALBERTVILLE, MINNESOTA
DEBT SERVICE FUNDS
COMBINING BALANCE SHEET
December 3],200]
With Comparative Totals for December 31,2000
(Continued)
355
356 J
2000
G.O. Sewer
Revenue Totals
Bonds 2001 2000
$ 0 $ 829,774 $ 915,291
0 2,446 2,342
0 85,060 82,027
0 7,976 2,875
0 875,606 1,131,027
0 286,834 264,560
0 123,977 1,955
$ 0 S 2,211,673 $ 2,400,077
1999A
G.O.
Improvement
Bonds
ASSETS
Cash and Investments
Cash in Trust
Restricted Cash in Trust
Taxes Receivable -
Delinquent
Special Assessments Receivable -
Deferred
Delinquent
Due from Other Governmental Units
S 337,169
o
o
2.3] 8
675,804
276,211
123,797
S 1,4]5,299
TOTAL ASSETS
LIABILITIES AND FUND BALANCE
Liabilities:
Cash Overdraft $ 0 $ 82,465 $ 280,472 $ 183,954
Deferred Revenue 954,333 0 1,170,416 1,398,462
Total Liabilities 954,333 82,465 1,450,888 1,582,416
Fund Balance:
Reserved for Debt Service 460,966 0 863,706 851,110
Umeserved -
Designated for Debt Service 0 0 177,535 150,415
Undesignated 0 ( 82,465) (280,456) (183,864)
Total Fund Balance (Deficit) 460,966 (82,465) 760,785 817,661
TOT AL LIABILITIES
AND FUND BALANCE $ 1,415,299 $ 0 $ 2,211 ,673 $ 2,400,077
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CITY OF ALBERTVILLE, MINNESOTA
DEBT SERVICE FUNDS
COMBINING STATEMENT OF REVENUES, EXPENDITURES
AND CHANGES IN FUND BALANCE
Year Ended December 31, 2001
With Comparative Totals for the Year Ended December 3 1,2000
300
I I
317
I I
318
I I
322
REVENUES:
General Propeliy Taxes
Special Assessments
Charges for Services
Miscellaneous -
Investment Income
Total Revenues
1992
Closed 1988 1989 Sewer
Bond Refunding Refunding Trunk
Issues Bonds Bonds Bonds
$ 208 $ 0 S 9,823 $ 3,480
20,308 6,145 88 13,257
0 0 0 0
6,604 0 1,563 3,707
27,120 6,145 11,474 20,444
EXPENDITURES:
Miscellaneous -
Interest
Debt Service -
Bond Principal
Bond Interest and Fiscal Charges
Total Expenditures
0 6,905 0 0
0 0 I 5,000 30,000
0 0 3,085 6,112
0 6,905 18,085 36,1 12
27,120 (760) (6,61 I) (15,668)
150,415 (157,317) 42,007 8 I ,406
$ 177,535 $ (I 58,077) $ 35,396 $ 65,738
EXCESS OF REVENUES OVER (UNDER)
EXPENDITURES
FUND BALANCE (DEFICIT) - January 1
FUND BALANCE (DEFICIT) - December 31
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CITY OF ALBERTVILLE~ MINNESOTA
DEBT SERVICE FUNDS
COMBINING STATEMENT OF REVENUES, EXPENDITURES
AND CHANGES IN FUND BALANCE
Year Ended December 31, 2001
With Comparative Totals for the Year Ended December 31, 2000
(Continued)
355
I I
356
1999A 2000
G.O G.O. Sewer
Improvement Revenue Totals
Bonds Bonds 2001 2000
REVENUES:
General Property Taxes $ 40,905 $ 0 $ 172,621 $ 216.175
Special Assessments 453,200 0 529.571 534,237
Charges for Services 0 0 0 9,908
Miscellaneous -
Investment Income 3,092 0 24,354 46,639
Total Revenues 497,197 0 726,546 806,959
EXPENDITURES:
Miscellaneous -
Interest 0 1,771 11,103 2,629
Debt Service -
Bond Principal 365,000 0 540,000 190,000
Bond Interest and Fiscal Charges 70,595 80,694 232,319 167,887
Total Expenditures 435,595 82,465 783,422 360,516
EXCESS OF REVENUES OVER (UNDER)
EXPENDITURES 61,602 (82,465) (56,876) 446,443
FUND BALANCE (DEFICIT) - January 1 399,364 0 817,661 371,218
FUND BALANCE (DEFICIT) - December 31 $ 460,966 $ (82,465) $ 760,785 $ 817,661
47
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CITY OF ALBERTVILLE, MINNESOTA
CAPITAL PROJECTS FUNDS
COMBINING BALANCE SHEET
December 31,2001
With Comparative Totals for December 31,2000
(Continued)
430 432 433 435 438
Cottages
Parks ide 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 in Trust 0 0 0 0 0
Special Assessments Receivable -
Deferred 0 0 0 0 0
TOTAL ASSETS $ 0 $ 0 $ 0 $ 0 $ 0
LIABILITIES AND FUND BALANCE
Liabilities:
Cash Overdraft $ 19,066 $ 31,963 $ 30,437 $ 2,890 $ 128,626
Accounts Payable 0 0 0 0 656
Contracts and Retainages Payable 0 0 0 0 0
Defened Revenue 0 0 0 0 0
Total Liabilities 19 J)66 31,963 30,437 2,890 129,282
Fund Balance:
Unreserved -
Designated for Capital Outlay 0 0 0 0 0
Undesignated (19,066) (31,963) (30,437) (2,890) (129,282)
Total Fund Balance (Deficit) (19,066) (31,963) (30,437) (2,890) ( 129,282)
TOTAL LIABILITIES A)JD
FUND BALANCE $ 0 $ 0 $ 0 $ 0 $ 0
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447
448
449
450
451
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CITY OF ALBERTVILLE, MINNESOTA
CAPITAL PROJECTS FUNDS
COMBINING BALANCE SHEET
December 3 I, 2001
With Comparative Totals for December 3 1,2000
( Continued)
ASSETS
Cash and Investments
Cash in Trust
Special Assessments Receivable -
Deferred
57th Street
Improvement
CSAIl 19
Improvement
62nd Street
Improvement
Albertville
Villas
Mooney
Addition
$
o
o
$
o
o
$ 68,825
o
$ 0
o
$ 0
o
o
o
o
o
()
$ 68,825
$
o
$
o
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TOTAL ASSETS
$
o
$
o
LIABILITIES AND FUND BA LANCE
Liabilities:
Cash Overdraft
Accounts Payable
Contracts and Retainages Payable
DefelTed Revenue
Total Liabilities
$ 140,753 $ 65,428 $ 0 $ 177,032 $ 9,952
0 0 0 10,474 497
0 0 0 0 0
0 0 0 0 0
140,753 65,428 0 187,506 10,449
Fund Balance:
Unreserved -
Designated for Capital Outlay 0 0 68,825 0 0
Undesignated (140,753) (65,428) 0 (187,506) (10,449)
Total Fund Balance (Deficit) ( 140,753) (65,428) 68,825 (187,506) (10,449)
TOTAL LIABILITIES AND
FUND BALANCE $ 0 $ 0 :]; 68,825 $ 0 $ 0
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CITY OF ALBERTVILLE, MINNESOTA
CAPITAL PROJECTS FUNDS
I
COMBINING STA TEMENT OF REYEN1JES, EXPENDITURES
AND CHANGES IN FUND BALANCE
Y car Ended December 3]. 200]
WIth ComparatIve Totals for the Year Ended December 3 I, 2000
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REVENUES
Propel1y Taxes
Special Assessments
Charges for Services
Miscellaneous Revenues -
Investment Income
Other Revenues
Total Revenues
400 406 407 408 409
TIF #8 TIF #9
Closed TIF 116 TIF #7 V etsc h Barthel
CapItal Fraser Senior Custom Bus
Projects Steel Housing Ca bm ets Garage
$ 0 $ 0 $ 77,024 $ 8.877 $ 11,567
0 0 0 0 0
0 0 0 0 0
7,606 0 283 0 3]4
7,972 0 0 0 0
15,578 0 77,307 8.877 11,881
0 237 91.472 17.410 17.940
0 0 0 0 0
0 275 0 0 0
0 0 0 0 0
-----0 512 91,472 17,410 ] 7,940
]5,578 (512) (14.165) (8,533) (6,059)
0 0 0 0 0
0 0 0 0 0
0 0 0 0 0
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EXPENDlTtIRES:
Other
CapItal Outlay -
Engllleer Fees
Legal Fees
Other ProfeSSIOnal ServIces
Total Expenditures
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EXCESS OF REVENUES OVER
(UNDER) EXPENDITURES
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OTHER FINANCING SOURCES:
Operatlllg Transfer In
Bond Proceeds
Total Other Financing Sources
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EXCESS OF REVENUES AND OTHER
FINANCING SOURCES OVER (UNDER)
EXPENDITURES
15,578
(512)
(14,165)
(8,533)
(6,059)
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FUND BALANCE (DEFICIT) - January]
]44,754
$ 160,332
$
(25)
(537)
26,731
8,132
10,914
FUND BALANCE (DEFICIT) - December 31
$
12,566
$
(401 )
$
4,855
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CITY OF ALBERTVILLE, MINNESOTA
CAPITAL PROJECTS FUNDS
COMBINING STATEMENT OF REVENUES, EXPENDITURES
AND CHANGES IN FUND BALANCE
Y car Ended December 3 I, 2001
With Comparat1Ye Totals for the Year Ended December 3 I, 2000
(Continued)
430 432 433 435 438
Cottages
Parksidc Parkside of Cedar Creek
3rd 4th Albertville Industrial Cedar Creek
Addition Addition TIF#7 Park North
REVENUES:
Property Taxes $ 0 $ 0 $ 0 $ 0 $ 0
Special Assessments 0 0 0 0 0
Charges for Services 0 0 0 0 0
Miscellaneous Revenues -
Investment Income 0 0 0 0 0
Other Revenues 0 0 0 0 0
Total Revcnucs 0 0 0 0 0
EXPENDITURES
Other 802 1,344 1,280 ]22 4,850
Capita] Outlay -
Engincer Fees 0 0 0 0 21,752
Legal Fees 0 0 0 0 0
Other Professional Services 0 0 0 0 1,136
Total ExpendItures 802 ] ,344 ],280 122 27,738
EXCESS OF REVENUES OVER
(UNDER) EXPENDITURES (802) ( 1,344) (] ,280) (J 22) (27,738)
OTHER FINANCING SOURCES
Operating Transfer In 0 0 0 0 0
Bond Proceeds 0 0 0 0 0
Total Other Financing Sources 0 0 0 0 0
EXCESS OF REVENUES AND OTHER
FINANCING SOURCES OVER (UNDER)
EXPENDITURES (802) (J ,344) (1,280) (122) (27,738)
FUND BALANCE (DEFICIT) - January I (] 8,264) (30,619) (29,157) (2,768) (101,544 )
FUND BALANCE (DEFICIT) - December 31 $ ( 19,066) $ (31 ,963) $ (30,437) $ (2,890) S (129,282)
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CITY OF ALBERTVILLE, MINNESOTA
CAPITAL PROJECTS FUNDS
COMl3ININCi STATEMENT OF REVENUES, EXPENDITURES
AND CHANGES IN FUND BALANCE
Year Ended December 31, 200]
W1th ComparatlVe Tota]s for the Year Ended December 3],2000
(Continued)
447
448
449
450
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CITY OF ALBERTVILLE, MINNESOTA
ENTERPRISE FUNDS
COMBINING BALANCE SHEET
December 31, 2001
With Comparative Totals for December 31, 2000
601 602 604
Sanitary Storm
Sewer Water Water
$ 0 S 850,676 $ 285,900
57,626 106,016 10,876
26,252 25,654 84,870
0 0 40,000
83,878 982,346 421,646
190,269 0 0
3,869,925 0 0
0 436,894 0
141,753 13,532 0
3,483,505 0 0
7,685,452 450,426 0
(1,003,971 ) (19,295) 0
6,681,481 431,131 0
$ 6,765,359 $ 1,413,477 $ 421 ,646
ASSETS
CURRENT ASSETS:
Cash and Cash Equivalents
Accounts Receivable
Due from Other Governments
Due from Other Funds
Total Current Assets
FIXED ASSETS:
Land
Sewer Plant and Lines
Water Main
Machinery and Equipment
Construction in Progress
Total Cost
Lcss: Accumulated Depreciation
Net Fixed Assets
TOTAL ASSETS
LIABILITIES AND FUND EQUITY
CURRENT LIABILITIES:
Cash Overdraft
Accounts Payable
Due to Other Governments
Current Maturities of Long- Term Debt
Total Current Liabilities
$ 104,043 $ 0 $
2,727 251
0 90,673
62,587 0
169,357 90,924
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o
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o
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LONG-TERM DEBT, LESS CURRENT PORTION
G.O. Revenue Notcs - PFA
982,400 0
1,151,757 90,924
5,458,089 436,894
97,894 0
57,619 885,659
5,613,602 1,322,553
$ 6,765,359 $ 1,413,477
o
Total Liabilities
o
FUND EQUITY:
Contributed Capital
Retained Earnings -
Rcserved for Operating Capital
Unreserved
Total Fund Equity
o
o
421,646
421,646
TOT AL LIABILITIES AND
FUND EQUITY
$ 421,646
OPERATING REVENUES:
Charges for Services
Water Tnmk Fees
Water Availability Charges
Penalties
Total Operating Revenues
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CITY OF ALBERTVILLE, MINNESOTA
ENTERPRISE FUNDS
COMBINING STATEMENT OF REVENUES, EXPENSES AND
CHANGES IN RETAINED EARNINGS
Year Ended December 31, 2001
With Comparative Totals for the Year Ended December 31, 2000
601 602 604
Sanitary Stoml
Sewer Water Water
$ 305,346 $ 122,419 $ 92,813
0 119,986 0
0 159,326 0
8,948 5,022 ],421
3] 4,294 406,753 94,234
36,335 35,481 0
18,809 2,061 1,928
50,371 7,558 ]46
23,511 0 586
0 0 0
28,601 0 0
85,770 9,633 0
9 0 0
243,406 54,733 2,660
70,888 352,020 91,574
OPERATING EXPENSES:
Salaries and Benefits
Repairs and Maintenance
Supplies
Professional Services
Insurance
Utilities
Depreci ati on
Miscellaneous
Total Operating Expenses
OPERATING INCOME
NON-OPERATING REVENUES
(EXPENSES):
Water Meter Sales
Interest Income (Expense)
Bond Interest Expense and Fiscal Charges
Water Meter Purchases
Total Non-Operating Revenues
(Expenses)
0 35,694 0
(5,260) 33,614 1 ] ,899
(33,295) 0 0
0 (33,629) 0
(38,555) 35,679 11,899
32,333 387,699 103,4 73
123,180 497,960 3]8.173
$ 155,513 $ 885,659 $ 421 ,646
NET INCOME
RETAINED EARNINGS - January 1
RETAINED EARNINGS - December 31
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CITY OF ALBERTVILLE, MINNESOTA
ENTERPRISE FUNDS
COMBINING STATEMENT OF CASH FLOWS
Year Ended Decembcr 31, 2001
With Comparative Totals for the Year Ended December 31,2000
CASH FLOWS FROM OPERATING ACTIVITIES:
Operating Income
Adjustments to Reconcile Operating Income to
Net Cash Provided by Operating Activities:
Depreciation
Change in Assets and Liabilities:
(Increase) Decrease in Accounts Receivable
(Increase) Decrease in Due from Other Govemments
(Decrease) in Accounts Payable
Increase (Decrease) in Due to Other Govemments
Total Adjustments
Net Cash PrO\lded by Operatmg Activities
CASH FLOWS FROM NONCAPIT AL FINANCING ACTIVITIES
Advances to Other Funds
CASH FLOWS FROM CAPITAL AND RELATED FINANCING
ACTIVITIES:
Principal Payments on Bonds
Interest and Fiscal Charges Paid on Bonds
Proceeds from Sales of Watcr Mcters
Acquisition of Water Meters
Acquisition of Fixed Assets
Net Cash Provided (Used) by Capital and Related Financing Activities
CASH FLOWS FROM INVESTING ACTIVITIES:
Interest on Investments
Net Increase in Cash and Cash Equivalents
Cash and Cash Equivalents, January 1
Cash and Cash Equivalents, December 31
601 602 604
Sanitary Storm
Sewer Water Water
$ 70,888 $ 352,020 $ 91,574
85,770 9,633 0
15,359 (13,303) (1,729)
(3,996) (7,833) (21 )
(1,284) (563) (92)
0 (141,267) 0
95,849 ( 153,333) (1,842)
166,737 198,687 89,732
0 0 ( 40,000)
(66,636) 0 0
(33,295) 0 0
0 35,694 0
0 (33,629) 0
(41,609) 0 0
(141,540) 2,065 0
(5,260) 33,614 11,899
19,937 234,366 61,631
( 123,9~0) 616,310 224,269
$ (104,043 ) $ 850,676 $ 285,900
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CITY OF ALBERTVILLE, MINNESOTA
STATEMENT OF GENERAL LONG-TERM DEBT
December 31,2001 and 2000
AMOUNT A V AILABLE AND TO BE PROVIDED
FOR PA YMENT OF GENERAL LONG-TERM DEBT:
Amount Available in Debt Service Funds
Amount to be Provided for Retirement of
Genera] Long-Tenn Debt
200] 2000
$ 760,785 $ 817,661
4,582,899 5,087,816
$ 5,343,684 $ 5,905,477
$ 25,000 $ 40,000
0 1 5,000
95,000 125,000
100,000 155,000
60,000 80,000
195.000 225.000
850,000 860JJOO
J ,395,000 J ,760,000
2,550,000 2,550,000
73,684 95,477
$ 5343,684 $ 5,905,477
TOTAL A V AlI~ABLE AND TO BE PROVIDED
GENERAL LONG-TERM DEBT:
G.O. Refunding Bond of 1989
G.O. Refunding Improvement Bond of 1992
G.O. Improvement Bonds, Series 1992A
G.O. Improvement Refunding Bonds, Series 1993A
G.O. Improvement Refunding Bonds. Series 1993C
G.O. Tax Increment Bonds, Series 1 ()96/\
Lease Revenue Bonds - Public Facility. 1999
G.O. Improvement Bonds, Series 1999A
G.O. Sewer Revenue Bonds, Series 2000A
Capital Lease Payable
TOTAL GENERAL LONG-TERM DEBT
61
62
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CITY OF ALBERTVILLE, MINNESOTA
INDEPENDENT AUDITORS' REPORT ON
COMPLIANCE WITH MINNESOTA STA TUTES
July 18, 2002
Honorable Mayor and City Council
City of Albertville
Albertville, Milmesota
We have audited the general purpose financial statements of the City of Albertville as of and for
the year ended December 31,2001, and have issued our rep011 thereon dated July 18,2002.
We conducted our audit in accordance with auditing standards generally accepted in the United
States of America and the provisions of the Minnesota Legal Compliance Audit Guide/or Local
Government, promulgated by the Legal Compliance Task Force pursuant to Alinnesota Statute
Sec. 6.65. Accordingly, the audit included such tests of the accounting records and such other
auditing procedures as we considered necessary in the circumstances.
The Minnesota Legal Compliance Audit Guide/c)r Local Government covers five main
categories of compliance to be tested: contracting and bidding, deposits and investments,
conflicts of interest, public indebtedness, and claims and disbursements. Our study included all
of the listed categories.
The results of our tests indicate that for the items tested the City complied with the material
terms and conditions of applicable legal provisions, except as described on the following pages.
This report is intended solely for the information and use of management City Council, and state
regulatory and oversight agencies and is not intended to be, and should not be, used by anyone
other than these specified parties.
K.b\IL, ~W~It.-!~J t/~J L-+-d.
Kem, DeWenter, Viere, Ltd.
St. Cloud, Minnesota
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CITY OF ALBERTVILLE, MINNESOTA
FINDINGS AND CORRECTIVE ACTION PLANS ON
COMPLIANCE WITH MINNESOTA STATUTES
Year Ended December 31, 2001
CURRENT AND PRlOR YEAR FINDING:
Collateral
Minnesota Statutes Sec. 118A.01 and 118A.OJ, provide that all deposits with financial
institutions must be collateralized in an amount equal to 110% of deposits in excess of FDIC
insurance. The deposits of the City at December 31,2001, were unsecured as follows:
110% of Deposits in
Excess of FDIC at
December 31, 2001
Market Value
of Collateral at
December 31,2001
Insufficient
Co lIateral
Premier Bank
$
4,563,178
$
3,018,000
$ 1,545,178
We recommend the City monitor collateral levels to ensure proper collateralization.
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 monitor collateral levels to ensure proper collateralization.
3. Official Responsible for Ensuring CAP
Linda Goeb, City Administrator, is responsible for ensuring the corrective action of the
deficiency.
4. Planned Completion Date for CAP
The planned completion date for the CAP is December 31,2002.
5. Plan to Monitor Completion of CAP
John Olson, the Mayor, and the City Council will be monitoring this corrective action
plan.
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