2002 Audited Financial Statements
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CITY OF ALBERTVILLE, MINNESOTA
TABLE OF CONTENTS
ELECTED OFFICIALS AND ADMINISTRATION .....................................................
INDEPENDENT AUDITORS' REPORT ...................... ..................... ... ...... ...... .......... ...
GENERAL PURPOSE FINANCIAL STATEMENTS -
Combined Balance Sheet - All Fund Types and Account Groups.............................
Combined Statement of Revenues, Expenditures and Changes in Fund Balance -
All Governmental Fund Types....... .......... ... ............. ............. ........ .............. ... ..........
Combined Statement of Revenues, Expenditures and Changes in Fund Balance-
Budget and Actual - General and Special Revenue Fund Types .............................
Combined Statement of Revenues, Expenses and Changes in Retained Earnings -
All Proprietary Fund Types .....................................................................................
Combined Statement of Cash Flows - All Proprietary Fund Types ..........................
Notes to the Financial Statements..............................................................................
COMBINING, INDIVIDUAL FUND AND ACCOUNT GROUP FINANCIAL
STATEMENTS -
General Fund -
Comparative Balance Sheet.................................................................................
Statement of Revenues, Expenditures and Changes in Fund Balance - Budget
and Actual..........................................................................................................
Special Revenue Funds -
Combining Balance Sheet....................................................................................
Combining Statement of Revenues, Expenditures and Changes in Fund
Balance.............................................................................................................. .
Debt Service Funds -
Combining Balance Sheet....................................................................................
Combining Statement of Revenues, Expenditures and Changes in Fund
Balance.............................................................................................................. .
Capital Projects Funds -
Combining Balance Sheet....................................................................................
Combining Statement of Revenues, Expenditures and Changes in Fund
Balance.............................................................................................................. .
Enterprise Funds -
Combining Balance Sheet....................................................................................
Combining Statement of Revenues, Expenses and Changes in Retained
Earnings............................................................................................................ .
Combining Statement of Cash Flows.................. .............. ...... ............................
Agency Fund -
Statement of Changes in Assets and Liabilities ...................................................
Statement of General Fixed Assets (Unaudited)........................................................
Statement of General Long-Term Debt....................... ..............................................
INDEPENDENT AUDITORS' REPORT ON COMPLIANCE WITH MINNESOTA
STATUTES.................................................................................................................... .
FINDINGS AND CORRECTIVE ACTION PLANS ON COMPLIANCE WITH
MINNESOTA STATUTES..............................................................................................
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KERN'DEWENTER'VIERE
INDEPENDENT AUDITORS' REPORT
July 3, 2003
Honorable Mayor and City Council
City of Albertville
Albertville, Minnesota
We have audited the accompanying general purpose financial statements of the City of
Albertville, Minnesota, as of and for the year ended December 31, 2002, 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.
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 perform 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,
2002.
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, 2002, 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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KERN. DEWENTER.YIERE
Our audit was performed for the purpose of forming an opinion on the general purpose financial
statements taken as a whole. The combining and individual fund financial statements listed in
the table of contents are presented for purposes of additional analysis and are not a required part
of the general purpose financial statements of City of Albertville, Minnesota. Such information
has been subjected to the auditing procedures applied in the audit of the general purpose
financial statements and, in our opinion, is fairly stated in all material respects in relation to the
general purpose financial statements taken as a whole.
K41L, 7Jew'eJ1-t~, VUJt.L, L.+cl.
KERN, DEWENTER, VIERE, LTD.
St. Cloud, Minnesota
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CITY OF ALBERTVILLE, MINNESOTA I
COMBINED BALANCE SHEET - ALL FUND TYPES AND ACCOUNT GROUPS I
December 31, 2002
Governmental Fund Types I
Special Debt Capital I
ASSETS AND OTHER DEBITS General Revenue Service Projects
Assets:
Cash and Investments (Including Cash I
Equivalents) $ 1,726,697 $ 5,193,961 $ 799,638 $ 662,230
Cash in Trust 0 0 2,475 858,270
Restricted Cash in Trust 0 0 86,069 0
Taxes Receivable - I
Delinquent 35,267 0 5,479 0
Special Assessments Receivable -
Deferred 0 0 603,327 405,019
Delinquent 0 0 214,641 0 I
Accounts Receivable 0 0 0 0
Interest Receivable 24,009 0 0 0
Due from Other Governmental Units 17,299 0 4,882 0 I
Due from Other Funds 0 0 0 0
Notes Receivable 0 98,435 0 0
Fixed Assets - Net 0 0 0 0
Other Debits: I
Amount Available in Debt Service Funds 0 0 0 0
Amount to be Provided for Retirement of
General Long-Term Debt 0 0 0 0
TOTAL ASSETS AND I
OTHER DEBITS $ 1 ,803,272 $ 5,292,396 $ 1,716,511 $ 1,925,519
LIABILITIES, EQUITY AND OTHER CREDITS I
Liabilities:
Cash Overdraft $ 0 $ 3,002 $ 211,323 $ 4,779,378
Accounts Payable 55,251 0 0 62,405 I
Contracts and Retainages Payable 37,707 0 0 202,120
Accrued Payroll Taxes and Benefits 3,702 0 0 0
Due to Other Governments 0 0 0 0
Due to Other Funds 0 0 0 0 I
Deferred Revenue 35,267 98,435 823,447 405,019
Bonds Payable 0 0 0 0
Revenue Notes Payable 0 0 0 0
Capital Leases Payable 0 0 0 0 I
Total Liabilities 131,927 101,437 1,034,770 5,448,922
Equity and Other Credits:
Investment in General Fixed Assets 0 0 0 0 I
Contributed Capital 0 0 0 0
Retained Earnings -
Reserved 0 0 0 0
Umeserved 0 0 0 0 I
Fund Balance -
Reserved 0 0 711,000 0
Umeserved - I
Designated 900,000 249,737 182,064 661,573
Undesignated 771,345 4,941,222 (211,323) (4,184,976)
Total Equity and Other Credits 1,671,345 5,190,959 681,741 (3,523,403)
TOTAL LIABILITIES, EQUITY I
AND OTHER CREDITS $ 1,803,272 $ 5,292,396 $ 1,716,511 $ 1,925,519
The notes to the fmancial statements are an integral part of this statement. I i
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I Proprietary Fiduciary
Fund Type Fund Type Account Groups
General
I Fixed General Totals
Assets Long-Term (Memorandum Only)
Enterprise Agency (Unaudited) Debt 2002 2001
I $ 1,574,900 $ 232,417 $ 0 $ 0 $ 10,189,843 $ 8,536,223
0 0 0 0 860,745 850,661
0 0 0 0 86,069 85,060
I 0 0 0 0 40,746 49,235
0 0 0 0 1,008,346 885,606
I 0 0 0 0 214,641 286,834
214,402 0 0 0 214,402 174,518
0 0 0 0 24,009 22,157
140,577 0 0 0 162,758 271,817
I 0 0 0 0 0 40,000
0 0 0 0 98,435 107,547
7,880,190 0 1,098,083 0 8,978,273 8,210,695
I 0 0 0 201,418 201,418 760,785
0 0 0 4,304,144 4,304,144 4,582,899
I $ 9,810,069 $ 232,417 $ 1,098,083 $ 4,505,562 $ 26,383,829 $ 24,864,037
I $ 20,112 $ 0 $ 0 $ 0 $ 5,013,815 $ 2,933,870
4,840 232,417 0 0 354,913 1,147,250
I 0 0 0 0 239,827 32,952
0 0 0 0 3,702 0
92,021 0 0 0 92,021 90,673
0 0 0 0 0 40,000
I 0 0 0 0 1,362,168 1,329,222
0 0 0 4,455,000 4,455,000 5,270,000
982,246 0 0 0 982,246 1,044,987
I 0 0 0 50,562 50,562 73,684
1,099,219 232,417 0 4,505,562 12,554,254 11,962,638
I 0 0 1,098,083 0 1,098,083 1,098,083
6,774,849 0 0 0 6,774,849 5,894,983
0 0 0 0 0 97,894
I 1,936,001 0 0 0 1,936,001 1,364,924
0 0 0 0 711,000 863,706
I 0 0 0 0 1,993,374 1,814,577
0 0 0 0 1,316,268 1,767,232
8,710,850 0 1,098,083 0 13,829,575 12,901,399
I $ 9,810,069 $ 232,417 $ 1,098,083 $ 4,505,562 $ 26,383,829 $ 24,864,037
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CITY OF ALBERTVILLE, MINNESOTA
COMBINED STATEMENT OF REVENUES, EXPENDITURES I
AND CHANGES IN FUND BALANCE - ALL GOVERNMENTAL FUND TYPES
Year Ended December 31, 2002 I
Governmental Fund Types I
Special Debt
General Revenue Service
REVENUES:
Taxes $ 1,177,380 $ 0 $ 192,677 I
Special Assessments 0 0 307,976
Licenses and Permits 587,020 0 0
Intergovernmental Revenues 201,191 0 0 I
Charges for Services 67,345 1,645,513 0
Miscellaneous Revenues 81,739 118,387 (1,270)
Total Revenues 2,114,675 1,763,900 499,383 I
EXPENDITURES:
Current - I
General Government 571,826 0 0
Public Safety 822,875 0 0
Public Works 271,960 0 0 I
Sanitation 42,393 0 0
Culture and Recreation 203,077 15,897 0
Economic Development 3,802 0 0
Miscellaneous 0 0 0 I
Capital Outlay 0 0 0
Debt Service -
Principal 23,122 0 815,000 I
Interest and Fiscal Charges 4,495 0 243,750
Total Expenditures 1,943,550 15,897 1,058,750
EXCESS OF REVENUES OVER (UNDER) I
EXPENDITURES 171,125 1,748,003 (559,367)
OTHER FINANCING SOURCES (USES): I
Sale of General Fixed Assets 497,386 0 0
Operating Transfers In 0 15,000 480,323 I
Operating Transfers Out (15,000) (480,323) 0
Total Other Financing Sources (Uses) 482,386 (465,323) 480,323
EXCESS OF REVENUES AND OTHER I
FINANCING SOURCES OVER (UNDER)
EXPENDITURES AND OTHER FINANCING USES 653,511 1,282,680 (79,044)
FUND BALANCE - January 1 1,017,834 3,908,279 760,785 I
FUND BALANCE - December 31 $ 1,671,345 $ 5,190,959 $ 681,741 I'
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The notes to the financial statements are an integral part of this statement. I
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Totals
I Capital (Memorandum Only)
Projects 2002 2001
I $ 102,989 $ 1,473,046 $ 1,365,415
126,400 434,376 532,531
0 587,020 306,699
I 0 201,191 272,892
12,700 1,725,558 1,254,520
(32,716) 166,140 378,759
I 209,373 4,587,331 4,110,816
I 0 571,826 512,513
0 822,875 336,287
0 271,960 360,637
I 0 42,393 21,535
0 218,974/ 144,149
0 3,802 1,851
I 99,155 99155/ 256,106
2,392,238 2,392:238-/ 2,673,059
I 0 838,122'1/ 561,793
0 248 245 ,../ 238,143
2,491,393 C 5,50~:590 :; 5,106,073
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(2,282,020) (922,259) (995,257)
I 0 497,386 10,950
0 495,323 1,015,000
I 0 (495,323) (1,015,000)
0 497,386 10,950
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(2,282,020) (424,873) (984,307)
I (1,241,383) 4,445,515 5,429,822
I $ (3,523,403) $ 4,020,642 $ 4,445,515
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CITY OF ALBERTVILLE, MINNESOTA I
COMBINED STATEMENT OF REVENUES, EXPENDITURES AND
CHANGES IN FUND BALANCE - BUDGET AND ACTUAL - I
GENERAL AND SPECIAL REVENUE FUND TYPES
Year Ended December 31, 2002
General Fund I
Over
(Under) I
Budget Actual Budget
REVENUES:
Taxes $ 1,175,394 $ 1,177,380 $ 1,986 I
Licenses and Permits 174,200 587,020 412,820
Intergovernmental Revenues 88,973 201,191 112,218
Charges for Services 50,800 67,345 16,545 I
Fines 100 0 (100)
Miscellaneous Revenues 25,950 81,739 55,789
Total Revenues 1,515,417 2,114,675 599,258 I
EXPENDITURES:
Current - I
General Government 505,629 571,826 66,197
Public Safety 429,425 822,875 393,450
Public Works 314,731 271,960 (42,771)
Sanitation 27,720 42,393 14,673 I
Culture and Recreation 156,978 203,077 46,099
Economic Development 7,282 3,802 (3,480)
Miscellaneous 0 0 0 I
Debt Service -
Principal 28,000 23,122 (4,878)
Interest 0 4,495 4,495 I
Total Expenditures 1,469,765 1,943,550 473,785
EXCESS OF REVENUES OVER (UNDER) I
EXPENDITURES 45,652 171,125 125,473
OTHER FINANCING SOURCES (USES): I
Sale of General Fixed Assets 0 497,386 497,386
Operating Transfer In 0 0 0
Operating Transfer Out (15,000) (15,000) 0
Total Other Financing Sources (Uses) (15,000) 482,386 497,386 I
EXCESS OF REVENUES AND OTHER FINANCING
SOURCES OVER (UNDER) EXPENDITURES I
AND OTHER FINANCING USES $ 30,652 653,511 $ 622,859
FUND BALANCE - January 1 1,017,834 I
FUND BALANCE - December 31 $ 1,671,345
The notes to the financial statements are an integral part of this statement. I
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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, 2002
With Comparative Totals for the Year Ended December 31, 2001
Totals
2002 2001
$ 611,802 $ 520,578
61,963 119,986
155,489 159,326
27,578 15,391
856,832 815,281
103,383 71,816
14,538 22,798
60,965 58,075
5,856 24,097
28,300 28,601
165,435 95,403
158 9
~.> 300,799
478,197 514,482
34,995 35,694
32,005 40,253
(37,189) (33,295)
(34,825) (33,629)
(5,014) 9,023
473,183 523,505
1,462,818 939,313
$ 1,936,001 $ 1,462,818
OPERATING REVENUES:
Charges for Services
Water Trunk Fees
W ater Availability Charges
Penalties
Total Operating Revenues
OPERATING EXPENSES:
Salaries and Benefits
Repairs and Maintenance
Supplies
Professional Services
Utilities
Depreciation
Miscellaneous
Total Operating Expenses
OPERATING INCOME
NONOPERATING REVENUES (EXPENSES):
Water Meter Sales
Interest Income
Interest Expense and Fiscal Charges
Water Meter Purchases
Total Nonoperating 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, 2002
With Comparative Totals for the Year Ended December 31,2001
CASH FLOWS FROM NONCAPITAL FINANCING ACTIVITIES:
Advances to Other Funds
Totals
2002 2001
$ 478,197 $ 514,482
165,435 95,403
(39,884) 327
(3,801) (11,850)
1,862 (1,939)
1,348 (141,267)
124,960 (59,326)
603,157 455,156
40,000 (40,000)
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
(Decrease) in Accounts Payable
Increase (Decrease) in Due to Other Governments
Total Adjustments
Net Cash Provided by Operating Activities
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
(62,741) ( 66,636)
(37,189) (33,295)
34,995 35,694
(34,825) (33,629)
(53,147) (41,609)
(152,907) (139,475)
32,005 40,253
522,255 315,934
1,032,533 716,599
$ 1,554,788 $ 1,032,533
CASH FLOWS FROM INVESTING ACTIVITIES:
Investment Income Received
Net Increase in Cash and Cash Equivalents
Cash and Cash Equivalents, January 1
Cash and Cash Equivalents, December 31
Cash and Cash Equivalents is Classified on the Combined
Balance Sheet - All Fund Types and Account Groups as Follows:
Cash and Investments (Including Cash Equivalents)
Cash Overdraft
Total Cash and Cash Equivalents
$ 1,574,900
(20,112)
$ 1,554,788
$ 1,136,576
(104,043)
$ 1,032,533
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, 2002
NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
The City of Albertville, Minnesota, has a mayor-council form of government. A mayor and four
council members are elected by the voters of the City for two year and four year terms,
respectively.
The 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 if it 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 reporting 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, 2002
NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)
A. Financial Reporting Entity (Continued)
· Related Organization - The relationship ofthe City with entity is disclosed
· Joint Ventures and Jointly Governed 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 Governed 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 ofthe 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 turn 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 ofthe original agreement, each city
and town was to contribute 25% of the required amount. In 1996, Frankfort
Township was annexed into the cities of St. Michael, Albertville 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, 2002
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 information ofthe Joint Powers Board Water Fund for the
year ended December 31, 2001 (2002 information is not available) is:
Net Income
$ 12,541,010
$ 7,159,502
5,381,508
$ 12,541,010
$ 1,029,035
547,867
924,160
$ 1,405,328
Total Assets
Total Liabilities
Total Equity
Total Liabilities and Equity
Total Revenues
Operating Expenses
Other Income (Expense)
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, 2002
NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)
A. Financial Reporting Entity (Continued)
Joint Ventures and Jointly Governed Organizations: (Continued)
St. Michael- Albertville Ice Arena (STMA 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-term loan in the amount of$ 83,333. In 2002 and 2001, the City
did not make any contributions nor receive any payments on the loan.
A summary of the financial information ofthe STMA Arena for the year ended
June 30, 2001 (June 30, 2002 information is not available) is:
Total Assets $ 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) $ (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. Government 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 31, 2002
NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)
B. Fund Accounting (Continued)
Governmental Funds
The General Fund is the general operating fund of the 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 long-term 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 enterprises--where 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 determination 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 storm 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-Term Debt Account Group is used to account for the City's long-term
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, 2002
NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)
C. Measurement Focus, Fixed Assets and Long-Term Liabilities
The accounting and reporting treatment applied to the fixed assets and long-term liabilities
associated with a fund are determined by its measurement focus. All governmental funds are
accounted for on a spending or "financial flow" measurement focus. This means that only
current 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. Governmental fund operating statements present increases (revenues and other
financing sources) and decreases (expenditures and other financing uses) in net current
assets. Accordingly, they are said to present a summary of sources and uses of available
spendable resources during a period.
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 fair value on the date
donated.
Because of their spending measurement focus, expenditure recognition for governmental
fund types is limited to exclude amounts represented by noncurrent liabilities. Since they do
not affect net current assets, such long-term amounts are not recognized as governmental
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-Term Debt, are not
"funds." They are concerned only with the measurement of financial position. They are not
involved with measurement of results of operations.
All proprietary funds are accounted for on a flow of economic resources measurement focus.
This means that all assets and all liabilities (whether current or noncurrent) associated with
the fund's activity are included on the balance sheet. Their reported fund equity (net total
assets) is segregated into contributed capital and retained earnings 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
expense against operations. Accumulated depreciation is reported on the proprietary fund
balance sheet. Depreciation has been provided over the assets' estimated useful lives using
the straight-line method. The estimated useful lives ofthe 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, 2002
NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)
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.
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 current
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
incurred. Principal and interest on general long-term 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.
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 permits, fees and
miscellaneous revenues; such revenues are recorded only as received because they are not
measurable until collected. Interest on special assessments is recognized as revenue when
due, net of delinquencies.
The City reports deferred revenue on the combined balance sheet. Deferred revenues arise
when a potential revenue does not meet both the "measurable" and "available" criteria for
recognition in the current period. Deferred 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
incurrence 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 deferred
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 incurred. Exceptions to this rule include sick pay and principal
and interest on general long-term debt, which are recognized when due.
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, 2002
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 2002.
3. Formal budgetary integration is employed as a management control device during the
year for the General Fund. No budgets are adopted for Special Revenue Funds. Formal
budgetary integration is not employed for Debt Service Funds because effective
budgetary control is alternatively achieved through general obligation bond indenture
provisions. Budgetary control for Capital Projects Funds is accomplished through the use
ofproject controls.
4. The budget for the General Fund is adopted on a basis consistent with 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, 2002, 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, l\fINNESOTA
NOTES TO THE FINANCIAL STATEMENTS
Year Ended December 31, 2002
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 short-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.
I. 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 2003 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, 2002
NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)
L. Vacation and Sick Leave
The City compensates employees who resign or retire with due notice for unused vacation
and compensatory time. Employees may carry over vacation time from one vacation year to
another vacation year as established by the employee's anniversary date. Compensatory time
is accumulated at I Y2 times the overtime hours worked in a two-week period. A maximum
of 40 hours of compensatory time may be accumulated.
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.
The unreserved portion of retained 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 portion 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, 2002
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.
Intergovernmental revenues are reported under the legal and contractual requirements of
the individual programs.
Licenses and permits, charges for services, fines and forfeitures and miscellaneous
revenues (except investment earnings) are recorded as revenues when measurable and
available. Investment earnings are recorded when earned because they are measurable
and available.
2. Property Tax Collection Calendar
The City levies its property tax for the subsequent year 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 shown as
delinquent taxes receivable.
December 28 is the last day the City can certify a tax levy to the County Auditor for
collection the following year. Such taxes become a lien on the following January 1.
The County Auditor prepares the tax list for all taxable property in the City, 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, 2002
NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)
N. Revenues, Expenditures and Expenses (Continued)
2. Property Tax Collection Calendar (Continued)
Iftaxes due May 15 are not paid on time, a penalty of3% is assessed on homesteaded
property and 7% on nonhomesteaded property. An additional 1 % penalty is added each
month the taxes remain unpaid, until October 15. Ifthe taxes due May 15 are not paid by
October 15, a 2% penalty per month is added to homesteaded property and 4% per month
to nonhomesteaded property until January 1. If the taxes are not paid by January 1,
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 accrues.
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 Loug- Term Debt Account Group.
4. Expenses
Proprietary fund types recognize expenses when they are incurred.
O. Interfund Transactions
Quasi-external transactions are accounted for as revenues, expenditures or expenses.
Transactions that constitute reimbursements to a fund for expenditures or expenses 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 permanent 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, 2002
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 are presented only to facilitate financial analysis. Data in these
columns do not present financial position, results of operations or cash flows in conformity
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 following funds had deficit fund balances at December 31, 2002:
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
North Frontage Road
Summerfield Addition
NE Sewer and Water Extension
CSAH 19/37 Intersection
Parkside 3rd Addition
Parkside 4th Addition
Cottages of Albertville TIF #7
$ 3,002
152,118
47,283
11,922
991
409
10,708
19,247
103,158
13,744
23,825
10,529
107,587
19,470
32,640
31,082
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CITY OF ALBERTVILLE, MINNESOTA
NOTES TO THE FINANCIAL STATEMENTS
Year Ended December 31, 2002
NOTE 2 - STEWARDSHIP, COMPLIANCE AND ACCOUNTABILITY (Continued)
A. Fund Balance Deficits (Continued)
Capital Projects Funds - (Continued)
Cedar Creek Industrial Park
Cedar Creek North
Center Oaks 1 st 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
Cobom's
NW Commercial Park
Albertville Business Park
$ 2,951
151,203
126,236
44,858
6,351
20,107
25,618
14,221
32,209
150,068
103,185
286,035
10,852
315,547
39,475
667,072
142,815
36,510
29,695
280,819
1,323,438
2,321
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 31,2002:
Expenditures
Appropriations
General Fund
Special Revenue Fund:
Park Fund
$ 1,943,550
15,897
$ 1,469,765
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CITY OF ALBERTVILLE, MINNESOTA
NOTES TO THE FINANCIAL STATEMENTS
Year Ended December 31, 2002
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 - Minnesota 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.
Category Bank Carrying
1 2 3 Balance Amount
Certificates of
Deposit $ 768,454 $ 0 $ 0 $ 768,454 $ 768,454
Bank Accounts 3,629,329 0 0 3,629,329 3,094,072
Total Deposit $ 4,397,783 $ 0 $ 0 $ 4,397,783 $ 3,862,526
b. Investments - Minnesota Statutes 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, 2002
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.
Carrying
Amount/
Category Fair
1 2 3 Value
U.S. Government
Securities $ 941,008 $ 0 $ 0 $ 941,008
Municipal Bonds 56,174 0 0 56,174
Negotiable CD's 314,326 0 0 314,326
Total $ 1,311,508 $ 0 $ 0 1,311,508
Not Subject to Risk Classification:
Broker Money Market Accounts
Cash in Trust
Restricted Cash in Trust
Total Deposits (Note 3 A.1.a.)
1,994
860,745
86,069
3,862,526
Total Cash and Investments
(Including Cash Equivalents)
$ 6,122,842
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
Total
$ 10,189,843
860,745
86,069
(5,013,815)
$ 6,122,842
For the year ended December 31, 2002, investment revenue was $ 130,594.
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The following is a summary of changes in general fixed assets (unaudited):
Balance Balance
1-1-02 Additions Disposals 12-31-02
Land $ 35,566 $ 0 $ 0 $ 35,566
Buildings 120,218 0 0 120,218
Improvements Other
than Buildings 78,169 0 0 78,169
Machinery and Equipment 864,130 0 0 864,130
Total $ 1,098,083 $ 0 $ 0 $ 1,098,083
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CITY OF ALBERTVILLE, MINNESOTA
NOTES TO THE FINANCIAL STATEMENTS
Year Ended December 31, 2002
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 governmental units at December 31, 2002:
Ice Arena
Wright Joint
Fund County Powers Total
General $ 17,299 $ 0 $ 17,299
Debt Service 4,882 0 4,882
Enterprise 57,244 83,333 140,577
Total $ 79,425 $ 83,333 $ 162,758
3. 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% per annum. The balances at
December 31, 2002 totaled $ 98,435.
4. Fixed Assets
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CITY OF ALBERTVILLE, MINNESOTA
NOTES TO THE FINANCIAL STATEMENTS
Year Ended December 31, 2002
NOTE 3 - DETAILED NOTES ON ALL FUNDS AND ACCOUNT GROUPS (Continued)
A. Assets (Continued)
4. Fixed Assets (Continued)
A summary of proprietary fund type fixed assets at December 31, 2002 is as follows:
Sanitary Storm
Sewer Water Water
Fund Fund Fund Totals
Land $ 190,269 $ 0 $ 0 $ 190,269
Sewer System 7,418,792 0 0 7,418,792
Water System 0 436,894 0 436,894
Equipment 180,021 28,410 0 208,431
Construction in Progress 381,591 288,609 144,305 814,505
Total Fixed Assets 8,170,673 753,913 144,305 9,068,891
Less: Accumulated Depreciation (1,155,971 ) (32,730) 0 (1,188,701)
Net Fixed Assets $ 7,014,702 $ 721,183 $ 144,305 $ 7,880,190
B. Liabilities
1. Defined Benefit Pension Plans - Statewide
a. Plan Description
All full-time and certain part-time employees ofthe 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.
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.
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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CITY OF ALBERTVILLE, MINNESOTA
NOTES TO THE FINANCIAL STATEMENTS
Year Ended December 31, 2002
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)
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% of average salary for each of the
first 10 years of service and 2.7% for each remaining year. The annuity accrual rate
for a Coordinated Plan member is 1.2% of average salary for each of the first 10 years
and 1.7% for each remaining year. Under Method 2, the annuity accrual rate is 2.7%
of average salary for Basic Plan members and 1.7% for Coordinated Plan members
for each year of service. For PERF members hired prior to July 1, 1989 whose
annuity is calculated using Method 1, a full annuity is available when age plus years
of service equal 90. Normal retirement age is 65 for Basic and Coordinated members
hired prior to July 1, 1989. Normal retirement age is the age for unreduced social
security benefits capped at 66 for Coordinated members hired on or after July 1,
1989. A reduced retirement annuity is also available to eligible members seeking
early retirement.
There are different types of annuities available to members upon retirement. A
normal annuity is a lifetime annuity that ceases upon the death of the retiree--no
survivor annuity is payable. There are also various types of joint and survivor
annuity options available which will be payable over joint lives. Members may also
leave their contributions in the fund upon termination 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.
The benefit provisions stated in the previous paragraphs of this section are current
provisions and apply to active plan participants. Vested, terminated 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 on
the web at mnpera.org, by writing to PERA at 60 Empire Drive #200, St. Paul,
Minnesota, 55103-2088 or by calling (651) 296-7460 or 1-800-652-9026.
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CITY OF ALBERTVILLE, MINNESOTA
NOTES TO THE FINANCIAL STATEMENTS
Year Ended December 31, 2002
NOTE 3 - DETAILED NOTES ON ALL FUNDS AND ACCOUNT GROUPS (Continued)
B. Liabilities (Continued)
1. Defined Benefit Pension Plans - Statewide (Continued)
b. Funding Policy
Minnesota Statute 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 9.10% and 5.10%, respectively, oftheir annual covered salary.
The City of Albertville is required to contribute the following percentages of annual
covered payroll: 11.78% for Basic Plan PERF members and 5.53% for Coordinated
Plan PERF members. The City's contributions to the Public Employees Retirement
Fund for the years ending December 31,2002,2001 and 2000 were $ 27,328,
$ 25,056 and $ 17,868, 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 Projects Total
Taxes Receivable -
Delinquent $ 35,267 $ 0 $ 5,479 $ 0 $ 40,746
Special Assessments
Receivable -
Deferred 0 0 603,327 405,019 1,008,346
Delinquent 0 0 214,641 0 214,641
Loans Receivable 0 98,435 0 0 98,435
Total $ 35,267 $ 98,435 $ 823,447 $405,019 $ 1 ,362, 168
28
CITY OF ALBERTVILLE, MINNESOTA
NOTES TO THE FINANCIAL STATEMENTS
Year Ended December 31, 2002
NOTE 3 - DETAILED NOTES ON ALL FUNDS AND ACCOUNT GROUPS (Continued)
B. Liabilities (Continued)
3. Long-Term Debt
The following is a summary of long-term debt transactions for the year ended
December 31,2002:
General
Obligation
General Special Tax Capital
Obligation Revenue Assessment Increment Lease
Balance - January 1 $ 60,000 $ 4,444,987 $ 1,615,000 $ 195,000 $ 73,684
Additions 0 0 0 0 0
Retirements (20,000) (377,741) (450,000) (30,000) (23,122)
Balance - December 31 $ 40,000 $ 4,067,246 $ 1,165,000 $ 165,000 $ 50,562
Outstanding
December 31, 2002
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
$
40,000
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
$ 860,000 Public Facility Lease Revenue Bonds,
Series 1999, due in annual installments of$ 10,000 to
$ 70,000 through February 1,2019; interest at 5.00
to 5.60 percent
$
982,246
820,000
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Total
$ 6,388,671 I
0
(900,863) I
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CITY OF ALBERTVILLE, MINNESOTA
NOTES TO THE FINANCIAL STATEMENTS
Year Ended December 31, 2002
NOTE 3 - DETAILED NOTES ON ALL FUNDS AND ACCOUNT GROUPS (Continued)
B. Liabilities (Continued)
3. Long- Term 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 February 1,2016; interest at 4.50
to 5.25 percent
Total Revenue Bonds
General Obligation Special Assessment Bonds:
$ 215,000 Refunding Bonds of 1989, due in annual
installments of$ 5,000 to $ 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$ 15,000
to $ 35,000 through December 30, 2004; interest at
5.70 percent
$ 675,000 General Obligation Improvement Refunding
Bonds, Series 1993A, due in annual installments of
$ 20,000 to $ 95,000 through February 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 February 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 $ 95,000 through February 1, 2008; interest at 4.25
to 5.40 percent
Outstanding
December 31, 2002
$
$
2,265,000
4,067 ,246
$
10,000
65,000
80,000
$
1,010,000
1,165,000
$
165,000
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General
Obligation
Year Ending General Special Tax
December 31 Obligation Revenue Assessment Increment Total
2003 $ 21,500 $ 609,497 $ 487,035 $ 37,920 $ 1,155,952
2004 20,500 626,812 183,230 36,420 866,962
2005 0 417,603 140,860 29,995 588,458
2006 0 427,441 81,600 28,645 537,686
2007 0 436,312 59,125 27,295 522,732
2008-2012 0 1,519,681 280,087 30,810 1,830,578
2013-2017 0 1,167,308 156,510 0 1,323,818
2018-2022 0 142,700 0 0 142,700
Total $ 42,000 $ 5,347,354 $ 1,388,447 $ 191,085 $ 6,968,886
4. Capital Lease
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.
CITY OF ALBERTVILLE, MINNESOTA
NOTES TO THE FINANCIAL STATEMENTS
Year Ended December 31, 2002
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,
2002, including interest payments of $ 1,531,640 are:
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, 2000.
Minimum future lease payments under the capital lease with the present value of
minimum lease payments as of December 31, 2002 follows:
Year Ended December 31
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2003
2004
Net Minimum Lease Payments
Less: Amount Representing Interest
Present Value of Minimum Lease Payments
$ 27,617
27,617
55,234
(4,672)
$ 50,562
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CITY OF ALBERTVILLE, MINNESOTA
NOTES TO THE FINANCIAL STATEMENTS
Year Ended December 31, 2002
NOTE 3 - DETAILED NOTES ON ALL FUNDS AND ACCOUNT GROUPS (Continued)
C. Fund Equity
1. Fund Balance -
Fund equity balances are classified as follows to reflect the limitations and restrictions of the
respective funds:
Fund balance is comprised of the following components:
Special Debt Capital
General Revenue Service Projects Total
Reserved -
Reserved for Debt Service $ 0 $ 0 $ 711,000 $ 0 $ 711,000
Unreserved -
Designated for Operating
Capital 900,000 0 0 0 900,000
Designated for Debt Service 0 0 182,064 0 182,064
Designated for Capital Outlay 0 249,737 0 661,573 911,310
Undesignated 771,345 5,421,545 (691,646) (4,184,976) 1,316,268
Total Fund Balance $ 1,671,345 $ 5,671,282 $ 201,418 $ (3,523,403) $ 4,020,642
2. Contributed Capital-
Contributed capital in the enterprise funds represents fixed assets which were purchased
by other funds and transferred to the enterprise funds. Changes in contributed capital for
the year are as follows:
Contributed Capital- January 1,2002
Add: Assets Contributed During 2002
Contributed Capital - December 31, 2002
$ 5,894,983
879,866
$ 6,774,849
NOTE 4 - CONSTRUCTION COMMITMENTS
The City has entered into contracts for the following improvement projects.
Fund/Project
Project
Authorization
Expended
Through
12/31/02
Commitment
NW Commercial Park Project
Savitski Lift Station Upgrade
STMA Ice Arena City Parking Lot
$ 1,349,333
261,498
73,036
$ 1,270,205
253,459
37,707
$
79,128
8,039
35,329
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CITY OF ALBERTVILLE, MINNESOTA
NOTES TO THE FINANCIAL STATEMENTS
Year Ended December 31, 2002
NOTE 5 - SEGMENT INFORMATION
The City maintains Water, Sanitary Sewer, and Storm Water Enterprise Funds. Segment
information for the year ended December 31, 2002 is as follows:
Sanitary Water Storm
Sewer Fund Water Total
Operating Revenues $ 420,509 $ 335,132 $ 101,191 $ 856,832
Depreciation 152,000 13,435 0 165,435
Operating Income 128,142 251,430 98,625 478,197
Net Income 90,403 276,866 105,914 473,183
Net Working Capital 18,570 1,166,845 527,560 1,712,975
Total Assets 7,156,327 1,981,877 671,865 9,810,069
Debt Outstanding 982,246 0 0 982,246
Total Equity 6,150,957 1,888,028 671,865 8,710,850
NOTE 6 - TAX INCREMENT FINANCING
The City of Albertville 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
Minnesota T .I.F. Act, Chapter 469.174, Subd.
11 and 469.1761
1996
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
$ 329
35,676
$ 35,347
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, 2002
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
Current Tax Capacity
Captured Tax Capacity -
Retained by City
Type of Notes Issued:
Economic Development
Minnesota T.I.F. Act, Chapter 469.174, Subd. 12
1997
108
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
$
$
195
5,322
5,127
"Pay as You Go" - The City pays the developer for tax
increments received in the current year.
Name 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
TIP Plan
$
Original Tax Capacity
Current Tax Capacity
Captured Tax Capacity -
Retained by City
Type of Notes Issued:
$
"Pay as You Go" - The City pays the developer for tax
increments received in the current year.
2,458
9,236
6,778
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NOTE 6 - TAX INCREMENT FINANCING (Continued)
Name of District: Tax Increment Financing District #10
Type of District:
Authorizing Law:
Year Established:
Duration of District:
CITY OF ALBERTVILLE, MINNESOTA
NOTES TO THE FINANCIAL STATEMENTS
Year Ended December 31, 2002
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Economic Development
Minnesota T.I.F. Act, Chapter 469.174, Subd. 12
1998
Earlier of 9 years after the date of receipt of the first
increment, or 11 years after the date of approval of the
TlF Plan
Original Tax Capacity
Current Tax Capacity
Captured Tax Capacity -
Retained by City
Type of Notes Issued:
$
710
9,556
8,846
$
"Pay as You Go" - The City pays the developer for tax
increments received in the current 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 of receipt of the first
increment, or 11 years after the date of approval of the
TlF Plan
Original Tax Capacity
Current Tax Capacity
Captured Tax Capacity -
Retained by City
Type of Notes Issued:
$ 1,712
26,942
$ 25,230
"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, 2002
NOTE 7 - RISK MANAGEMENT
The City is exposed to various risk of loss related to torts; theft of, damage to and destruction 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 Trust, 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 Minnesota Cities
Insurance Trust 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 portion of its insurance policies. The amounts of these deductib1es are considered
immaterial to the financial statements.
During the year ended December 31, 2002, 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 determined 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 OBLIGATIONS
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 ofthe 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, 2002, the following issues were outstanding:
Name
Date of Issue
Original
Amount
Outstanding
December 31, 2002
Cottages of Albertville - September 23, 1999
Multi Family Housing
Revenue Bonds, Series 1999A
Taxable Multi Family Housing
Revenue Bonds, Series 1999B
Subordinated Multi-Family
Housing Revenue Bonds,
Series 1999C
$
3,230,000
$
3,230,000
85,000
30,000
425,000
425,000
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CITY OF ALBERTVILLE, MINNESOTA
NOTES TO THE FINANCIAL STATEMENTS
Year Ended December 31, 2002
NOTE 9 - GASB NO. 34
In June 1999, the Governmental Accounting Standards Board (GASB) unanimously approved
Statement No. 34, Basic Financial Statements - and Management's Discussion and Analysis - for
State and Local Governments. Certain significant changes in the Statement include the
following:
. For the first time the financial statements will include:
. A Management Discussion and Analysis (MD&A) section providing an analysis of the
District's overall financial position and results of operations.
. Financial statements prepared using full accrual accounting for all of the City's activities.
. A change in the fund financial statements to focus on the major funds.
The general provisions of GASB No. 34 must be implemented by the City of Albertville no later
than the fiscal year ending December 31, 2004.
CITY OF ALBERTVILLE, MINNESOTA
THE GENERAL FUND
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The General Fund accounts for all revenues and expenditures of a governmental unit which are
not accounted for in other funds, and it is usually the largest and most important accounting
activity for state and local governments. It normally receives a greater variety and number of
taxes and other general revenues than any other fund. This fund has flowing into it such
revenues as general property taxes, license and permits, fines and penalties, rents, charges for
current services, state-shared taxes, and interest earnings. The fund's resources also finance a
wider range of activities than any other fund. Most of the current operations of governmental
units will be financed from this fund.
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CITY OF ALBERTVILLE, MINNESOTA
GENERAL FUND
CaMP ARA TIVE BALANCE SHEET
December 31,2002 and 2001
ASSETS
Cash and Investments
Taxes Receivable -
Delinquent
Interest Receivable
Due from Other Governmental Units
TOTAL ASSETS
LIABILITIES AND FUND BALANCE
Liabilities -
Accounts Payable
Contracts and Retainages Payable
Accrued Payroll Taxes and Benefits
Due to Other Funds
Deferred Revenue
Total Liabilities
Fund Balance -
Umeserved -
Designated for Operating Capital
Undesignated (Deficit)
Total Fund Balance
TOTAL LIABILITIES AND FUND BALANCE
Totals
2002
$ 1,726,697
35,267
24,009
17,299
$ 1,803,272
2001
$ 1,764,374
41,259
22,157
11 ,064
$ 1,838,854
$ 55,251 $ 739,761
37,707 0
3,702 0
0 40,000
35,267 41,259
131,927 821,020
900,000
771,345
1,671,345
$ 1,803,272
700,000
317,834
1,017,834
$ 1,838,854
38
CITY OF ALBERTVILLE, MINNESOTA I
GENERAL FUND I
STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE-
BUDGET AND ACTUAL I
Year Ended December 31, 2002
With Comparative Totals for the Year Ended December 31, 2001
Over I
(Under) 2001
Budget Actual Budget Actual I
REVENUES:
Taxes -
General Property Tax $ 1,175,394 $ 1,177,380 $ 1,986 $ 1,030,736 I
Excess Tax Increments 0 0 0 8,322
Total Taxes 1,175,394 1,177,380 1,986 1,039,058
Licenses and Permits - I
Liquor and Beer Licenses 9,800 12,296 2,496 9,350
Building Permits 150,000 552,847 402,847 280,304
Business Permits 10,000 18,127 8,127 16,670 I
Sign Permits 4,200 3,075 (1,125) 150
Other Licenses 200 675 475 225
Total Licenses and Permits 174,200 587,020 412,820 306,699 I
Intergovernmental -
Local Government Aid 55,718 55,718 0 89,592
State Property Tax Aid 0 113,654 113,654 138,190 I
Fire Aid 14,476 14,332 (144) 19,934
Police Aid 10,000 12,265 2,265 12,575
Other State and County Aids 8,779 5,222 (3,557) 12,601 I
Total Intergovernmental Revenue 88,973 201,191 112,218 272,892
Charges for Services -
Fire Protection Fees 45,000 36,438 (8,562) 37,514 I
Special Assessment Searches 800 1,450 650 1,160
Park Rental Fees 1,500 3,075 1,575 19,981
Other Charges for Services 3,500 26,382 22,882 11,292 I
Total Charges for Services 50,800 67,345 16,545 69,947
Fines, Forfeitures and Penalties 100 0 (100) 0
Miscellaneous Revenue - I
Investment Income 25,000 40,819 15,819 58,018
Lease Payments 950 1,140 190 2,048
Contributions and Donations 0 17,384 17,384 21,127 I
Other Revenues 0 22,396 22,396 11,005
Total Miscellaneous Revenue 25,950 81,739 55,789 92,198
TOTAL REVENUES 1,515,417 2,114,675 599,258 1,780,794 I
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I CITY OF ALBERTVILLE, MINNESOTA
I GENERAL FUND
STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE-
I BUDGET AND ACTUAL
Year Ended December 31, 2002
With Comparative Totals for the Year Ended December 31, 2001
I (Continued)
Over
I (Under) 2001
Budget Actual Budget Actual
EXPENDITURES:
General Government -
I Mayor and Council -
Personal Services $ 12,472 $ 12,278 $ (194) $ 11,295
Supplies 800 716 (84) 588
I Other Services and Charges 21,500 20,095 (1,405) 25,340
Total Mayor and Council 34,772 33,089 (1,683) 37,223
City Clerk-Treasurer and City Administrator-
I Personal Services 143,418 146,960 3,542 133,446
Supplies 5,200 8,247 3,047 5,262
Other Services and Charges 25,850 22,477 (3,373) 24,368
I Capital Outlay 5,000 10,889 . 5,889 7,279
Total City Clerk-Treasurer and
City Administrator 179,468 188,573 9,105 170,355
I Elections -
Other Services and Charges 5,300 4,055 - (1,245) 0
I Assessing - ~\9:
Other Services and Charges 15,000 1,096 13,431
Legal - ~e.
I Other Services and Charges 20,000 7,614 18,089
Engineer -
I Other Services and Charges 50,000 ~Sc. 109,986 192,651
Planning and Zoning -
Personal Services 1,292 1,100 (192) 2,379
I Supplies 750 75 (675) 2,217
Other Services and Charges 20,250 37,689 17,439 16,898
Total Planning and Zoning 22,292 38,864 16,572 21,494
I General Government Buildings -
Supplies 1,000 880 (120) 1,091
Other Services and Charges 20,725 67,782 47,057 53,620
I Capital Outlay 157,072 34,887 (122,185) 4,559
Total General Government
Buildings 178,797 103,549 (75,248) 59,270
I Total General Government 505,629 571,826 66,197 512,513
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CITY OF ALBERTVILLE, MINNESOTA I
GENERAL FUND
STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE - I
BUDGET AND ACTUAL
Year Ended December 31, 2002
With Comparative Totals for the Year Ended December 31, 2001 I
(Continued)
Over I
(Under) 2001
EXPENDITURES: Budget Actual Budget Actual
Public Safety - I
Police Protection -
Other Services and Charges $ 251,120 $~ $ (7,300) $ 233,600
Fire Protection - I
Personal Services 49,005 35,156 (13,849) 55,282
Supplies 9,775 11,714 1,939 6,452
Other Services and Charges 21,975 33,844 11,869 26,695
Capital Outlay 94,550 .--t- 494,733 400,183 12,153 I
Total Fire Protection 175,305 575,447 400,142 100,582
Building Inspection - I
Other Services and Charges 0 939 939 0
Animal Control -
Other Services and Charges 3,000 ~>:f/ (331 ) 2,105 I
Total Public Safety 429,425 822,875 393,450 336,287
Public Works - I
Streets and Highways -
Personal Services 67,506 77,545 10,039 60,942
Supplies 33,750 32,368 (1,382) 22,930 I
Other Services and Charges 40,975 50,646 . 9,671 51,033
Capital Outlay 132,500 69,148. (63,352) 188,081
Total Streets and Highways 274,731 229,707 (45,024) 322,986 I
Street Lighting -
Other Services and Charges 40,000 42,253 2,253 37,651
Total Public Works 314,731 271,960 (42,771) 360,637 I
Sanitation -
Recycling - ~ I
Other Services and Charges 27,720 14,673 21,535
Culture and Recreation - I
Parks -
Personal Services 68,206 37,626 (30,580) 63,628
Supplies 4,500 3,114 (1,386) 2,440
Other Services and Charges 20,645 19,506 (1,139) 11,383 I
Capital Outlay 63,627 142,831 79,204 40,177
Total Culture and Recreation 156,978 203,077 46,099 117,628
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II
CITY OF ALBERTVILLE, MINNESOTA
GENERAL FUND
STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE -
BUDGET AND ACTUAL
Year Ended December 31, 2002
With Comparative Totals for the Year Ended December 31, 2001
(Continued)
Over
(Under) 2001
EXPENDITURES: (Continued) Budget Actual Budget Actual
Economic Development -
Supplies $ 350 $ 0 $ (350) $ 0
Other Services and Charges 6,932 3,802 (3,130) 1,851
Total Economic Development 7,282 3,802 (3,480) 1,851
Debt Service -
Principal 28,000 23,122 (4,878) 21,793
Interest 0 4,495 4,495 5,824
Total Debt Service 28,000 27,617 (383) 27,617
TOTAL EXPENDITURES 1,469,765 1,943,550 473,785 1,378,068
EXCESS OF REVENUES OVER
EXPENDITURES 45,652 171,125 125,473 402,726
OTHER FINANCING SOURCES (USES):
Sale of General Fixed Assets 0 497,386 497,386 10,950
Operating Transfer Out (15,000) (15,000) 0 (15,000)
Total Other Financing Sources (Uses) (15,000) 482,386 497,386 (4,050)
EXCESS OF REVENUES AND OTHER
FINANCING SOURCES OVER EXPENDITURES
AND OTHER FINANCING USES $ 30,652 653,511 $ 622,859 398,676
FUND BALANCE - January 1 1,017,834 619,158
FUND BALANCE - December 31 $ 1,671,345 $ 1,017,834
42
Fund Balance:
Umeserved -
Designated for Capital Outlay
Undesignated
Total Fund Balance (Deficit)
249,737
o
249,737
o
818,163
818,163
o
63,737
63,737
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I
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I
I
CITY OF ALBERTVILLE, MINNESOTA
SPECIAL REVENUE FUNDS
COMBnITNGBALANCESHEET
December 31, 2002
With Comparative Totals for December 31, 2001
Cash and Investments
Notes Receivable
102 I l 201 I I 203
Capital Revolving
Outlay Park Loan
Reserves Fund Fund
$ 249,737 $ 818,163 $ 63,737
0 0 98,435
$ 249,737 $ 818,163 $ 162,172
ASSETS
TOTAL ASSETS
LIABILITIES AND FUND BALANCE
Cash Overdraft
Deferred Revenue
Total Liabilities
$
o
o
o
$ 0
o
o
$ 0
98,435
98,435
TOTAL LIABILITIES AND
FUND BALANCE
$ 249,737
$ 818,163
$ 162,172
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I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
204 I J 205
Totals
SAC CMIF 2002 2001
$ 4,062,324 $ 0 $ 5,193,961 $ 3,911,218
0 0 98,435 107,547
$ 4,062,324 $ 0 $ 5,292,396 $ 4,018,765
$ 0
o
o
$
3,002
o
3,002
$ 3,002
98,435
101,437
$ 2,939
107,547
110,486
o
4,062,324
4,062,324
o
(3,002)
(3,002)
249,737
4,941,222
5,190,959
244,553
3,663,726
3,908,279
$ 4,062,324
$
o
$ 5,292,396
$ 4,018,765
43
I
CITY OF ALBERTVILLE, MINNESOTA I
SPECIAL REVENUE FUNDS
COMBINING STATEMENT OF REVENUES, EXPENDITURES I
AND CHANGES IN FUND BALANCE
Year Ended December 31, 2002 I
With Comparative Totals for the Year Ended December 31, 2001
102 I I 201 I I 203 I
Capital Revolving
Outlay Park Loan I
Reserves Fund Fund
REVENUES:
Charges for Services - I
Park Dedication Fees $ 0 $ 330,491 $ 0
Sewer Availability Charges 0 0 0
Trunk Access Charges 0 0 0 I
Miscellaneous -
Investment Income 5,184 15,428 1,193
Donations 0 2,000 0 I
Loan Repayments and Other 0 0 12,888
Total Revenues 5,184 347,919 14,081
EXPENDITURES: I
Culture and Recreation -
Capital Outlay 0 15,897 0
Miscellaneous - I
Interest 0 0 0
Total Expenditures 0 15,897 0
EXCESS OF REVENUES OVER I
(UNDER) EXPENDITURES 5,184 332,022 14,081
OTHER FINANCING SOURCES (USES): I
Operating Transfers In 0 0 0
Operating Transfers Out 0 0 0 I
Total Other Financing Sources (Uses) 0 0 0
EXCESS OF REVENUES AND OTHER
FINANCING SOURCES OVER (UNDER) I
EXPENDITURES AND OTHER FINANCING USES 5,184 332,022 14,081
FUND BALANCE (DEFICIT) - January 1 244,553 486,141 49,656 I
FUND BALANCE (DEFICIT) - December 31 $ 249,737 $ 818,163 $ 63,737
I
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I
I
I
I 204 I I 205
I Totals
SAC CMIF 2002 2001
I $ 0 $ 0 $ 330,491 $ 91,049
1,183,772 0 1,183,772 1,057,495
I 131,250 0 131,250 34,829
81,757 (63) 103,499 161,302
0 0 2,000 13,699
I 0 0 12,888 20,443
1,396,779 (63) 1,763,900 1,378,817
I
0 0 15,897 26,521
I 0 0 0 218
0 0 15,897 26,739
I 1,396,779 (63) 1,748,003 1,352,078
I 15,000 0 15,000 15,000
(480,323) 0 (480,323) (1,000,000)
I (465,323) 0 (465,323) (985,000)
I 931,456 (63) 1,282,680 367,078
I 3,130,868 (2,939) 3,908,279 3,541,201
$ $ 5,190,959
$ 4,062,324 (3,002) $ 3,908,279
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I
44
I
I
CITY OF ALBERTVILLE, MINNESOTA I
DEBT SERVICE FUNDS
COMBINING BALANCE SHEET I
December 31, 2002
With Comparative Totals for December 31, 2001
I
300 I I 317 I I 318 I I 322 I
1992
Closed 1988 1989 Sewer I
Bond Refunding Refunding Trunk
Issues Bonds Bonds Bonds
ASSETS. I
Cash and Investments $ 181,900 $ 0 $ 28,839 $ 47,743
Cash in Trust 0 0 0 0
Restricted Cash in Trust 0 0 0 0 I
Taxes Receivable -
Delinquent 51 6 312 109
Special Assessments Receivable - I
Deferred 1,233 12,764 0 20,698
Delinquent 0 0 0 238
Due from Other Governmental Units 164 0 0 0
TOTAL ASSETS $ 183,348 $ 12,770 $ 29,151 $ 68,788 I
LIABILITIES AND FUND BALANCE I
Liabilities -
Cash Overdraft $ 0 $ 152,118 $ 0 $ 0
Deferred Revenue 1,284 12,770 312 21,045 I
Total Liabilities 1,284 164,888 312 21,045
Fund Balance - I
Reserved for Debt Service 0 0 28,839 47,743
Unreserved -
Designated for Debt Service 182,064 0 0 0 I
Undesignated 0 (152,118) 0 0
Total Fund Balance (Deficit) 182,064 (152,118) 28,839 47,743
TOTAL LIABILITIES I
AND FUND BALANCE $ 183,348 $ 12,770 $ 29,151 $ 68,788
I
I
I
I
I
I
I
I
323 I I 324 I I 341 I I 353 I I 354 I I 355
I ~
G.O. G.O.
1992 1993 , 1999 1999A
I Refunding Improvement City 1996A Lease G.O.
Improvement & Refunding Hall G.O. TIF Revenue Improvement
Bonds Bonds Bonds Bonds Bonds Bonds
I $ 13,644 $ 125,297 $ 16,769 $ 0 $ 56,249 $ 329,197
0 0 0 0 2,475 0
0 0 0 0 86,069 0
I 179 0 777 337 2,308 1,400
I 0 32,166 0 84,376 0 452,090
0 6,023 0 0 0 208,380
0 0 0 0 0 4,718
I $ 13,823 $ 163,486 $ 17,546 $ 84,713 $ 147,101 $ 995,785
I
$ 0 $ 0 $ 0 $ 47,283 $ 0 $ 0
I 179 38,189 777 84,713 2,308 661,870
179 38,189 777 131,996 2,308 661,870
I 13 ,644 125,297 16,769 0 144,793 333,915
0 0 0 0 0 0
I 0 0 0 (47,283) 0 0
13 ,644 125,297 16,769 (47,283) 144,793 333,915
I $ 13,823 $ 163,486 $ 17 ,546 $ 84,713 $ 147,101 $ 995,785
I
I
I
I 45
$ 11,922 $ 211 ,323 $ 280,472
0 823,447 1,170,416
11,922 1,034,770 1,450,888
0 711,000 863,706
0 182,064 177,535
(11,922) (211,323) (280,456)
(11,922) 681,741 760,785
$ 0 $ 1,716,511 $ 2,211,673
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I
I
I
I
I
I
I
CITY OF ALBERTVILLE, MINNESOTA
DEBT SERVICE FUNDS
COMBINING BALANCE SHEET
December 31, 2002
With Comparative Totals for December 31, 2001
(Continued)
356
2000
G.O. Sewer
Revenue
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
$
TOTAL ASSETS
$
LIABILITIES AND FUND BALANCE
Liabilities -
Cash Overdraft
Deferred Revenue
Total Liabilities
Fund Balance -
Reserved for Debt Service
Unreserved -
Designated for Debt Service
Undesignated
Total Fund Balance (Deficit)
TOTAL LIABILITIES
AND FUND BALANCE
o
o
o
Totals
2002 2001
$ 799,638 $ 829,774
2,475 2,446
86,069 85,060
5,479 7,976
603,327 875,606
214,641 286,834
4,882 123,977
$ 1,716,511 $ 2,211,673
o
o
o
o
o
46
CITY OF ALBERTVILLE, MINNESOTA
DEBT SERVICE FUNDS
COMBINING STATEMENT OF REVENUES, EXPENDITURES
AND CHANGES IN FUND BALANCE
Year Ended December 31, 2002
With Comparative Totals for the Year Ended December 31, 2001
REVENUES:
General Property Taxes
Special Assessments
Miscellaneous -
Investment Income
Total Revenues
EXPENDITURES:
Miscellaneous -
Interest
Debt Service -
Bond Principal
Bond Interest and Fiscal Charges
Total Expenditures
EXCESS OF REVENUES OVER (UNDER)
EXPENDITURES
OTHER FINANCING SOURCES:
Operating Transfers In
EXCESS OF REVENUES AND OTHER
FINANCING SOURCES OVER (UNDER)
EXPENDITURES
FUND BALANCE (DEFICIT) - January 1
FUND BALANCE (DEFICIT) - December 31
300
Closed
Bond
Issues
$
o
769
3,760
4,529
4,529
4,529
177,535
$ 182,064
o
o
o
o
o
I I
317
1988
Refunding
Bonds
$ 15
9,296
(3,352)
5,959
5,959
5,959
(158,077)
$ (152,118)
I I
318
1989
Refunding
Bonds
$ 10,229
o
631
10,860
o
o
15,000
2,417
17,417
o
o
o
(6,557)
o
o
(6,557)
35,396
$ 28,839
I ,
322
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I I
1992
Sewer
Trunk
Bonds
$
3,556
12,893
1,461
17,910
o
30,000
5,905
35,905
(17,995)
o
$
(17,995)
65,738
47,743
I
I
I
I
I 323 I I 324 I I 341 I I 353 I I 354 I I 355
I G.O. G.O.
1992 1993 1999 1999A
Refunding Improvement City 1996A Lease G.O
I Improvement & Refunding Hall G.O. TIF Revenue Improvement
Bonds Bonds Bonds Bonds Bonds Bonds
$ 5,397 $ 0 $ 23,181 $ 10,083 $ 78,274 $ 61,942
I 0 13,776 0 23,762 0 247,480
231 2,433 (8) (1,478) 973 3,730
I 5,628 16,209 23,173 32,367 79,247 313,152
I 0 0 0 0 0 0
0 20,000 20,000 30,000 30,000 385,000
I 0 5,361 3,087 9,736 46,912 55,203
0 25,361 23,087 39,736 76,912 440,203
I 5,628 (9,152) 86 (7,369) 2,335 (127,051)
I 0 0 0 0 0 0
I 5,628 (9,152) 86 (7,369) 2,335 (127,051)
I 8,016 134,449 16,683 (39,914) 142,458 460,966
$ 13 ,644 $ 125,297 $ 16,769 $ (47,283) $ 144,793 $ 333,915
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I
47
I
I
CITY OF ALBERTVILLE, MINNESOTA I
DEBT SERVICE FUNDS
COMBINING STATEMENT OF REVENUES, EXPENDITURES I
AND CHANGES IN FUND BALANCE
Year Ended December 31, 2002
With Comparative Totals for the Year Ended December 31, 2001 I
(Continued)
356 I
2000 I
G.O. Sewer
Revenue Totals I
Bonds 2002 2001
REVENUES:
General Property Taxes $ 0 $ 192,677 $ 172,621
Special Assessments 0 307,976 529,571 I
Miscellaneous -
InvestrnentIncome (9,651) (1,270) 24,354
Total Revenues (9,651) 499,383 726,546 I
EXPENDITURES:
Miscellaneous - I
Interest 0 0 11,103
Debt Service -
Bond Principal 285,000 815,000 540,000
Bond Interest and Fiscal Charges 115,129 243,750 232,319 I
Total Expenditures 400,129 1,058,750 783,422
EXCESS OF REVENUES OVER (UNDER) I
EXPENDITURES (409,780) (559,367) (56,876)
OTHER FINANCING SOURCES: I
Operating Transfers In 480,323 480,323 0
EXCESS OF REVENUES AND OTHER
FINANCING SOURCES OVER (UNDER) I
EXPENDITURES 70,543 (79,044) 56,876
FUND BALANCE (DEFICIT) - January 1 (82,465) 760,785 817,661 I
FUND BALANCE (DEFICIT) - December 31 $ (11,922) $ 681,741 $ 874,537
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48
I
CITY OF ALBERTVILLE, MINNESOTA
CAPITAL PROJECTS FUNDS
COMBINING BALANCE SHEET
December 31, 2002
With Comparative Totals for December 31, 2001
400 I I 406 I I 407 I I 408 I I 409
TIF #8 TIF #9
Closed TIF #6 TIF #7 Vetsch Barthel
Capital Fraser Senior Custom Bus
Projects Steel Housing Cabinets Garage
ASSETS
Cash and Investments $ 164,167 $ 0 $ 15,087 $ 0 $ 6,569
Cash in Trust 0 0 0 0 0
Special Assessments Receivable -
Deferred 0 0 0 0 0
TOTAL ASSETS $ 164,167 $ 0 $ 15,087 $ 0 $ 6,569
LIABILITIES AND FUND BALANCE
Liabilities:
Cash Overdraft $ 0 $ 991 $ 0 $ 409 $ 0
Accounts Payable 0 0 0 0 0
Contracts and Retainages Payable 0 0 0 0 0
Deferred Revenue 0 0 0 0 0
Total Liabilities 0 991 0 409 0
Fund Balance:
Umeserved -
Designated for Capital Outlay 164,167 0 15,087 0 6,569
Undesignated 0 (991) 0 (409) 0
Total Fund Balance (Deficit) 164,167 (991) 15,087 (409) 6,569
TOTAL LIABILITIES AND
FUND BALANCE $ 164,167 $ 0 $ 15,087 $ 0 $ 6,569
I
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I
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I
I
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I
I
I
410 I I 411 I I 421 I I 426 I I 427 I I 428 I I 429
I Barthel
TIF # 11 Industrial North NE Sewer CSAH
I TIF #10 Land of Drive & Frontage Summerfield and Water 19/37
Mold-Tech Lakes Tile 52nd Street Road Addition Extension Intersection
$ 0 $ 0 $ 0 $ 0 $ 0 $ 0 $ 0
I 0 0 0 0 0 0 0
0 0 0 8,000 0 0 0
I $ 0 $ 0 $ 0 $ 8,000 $ 0 $ 0 $ 0
I $ 10,708 $ 19,247 $ 103,158 $ 13,744 $ 23,825 $ 10,529 $ 107,587
0 0 0 0 0 0 0
0 0 0 0 0 0 0
I 0 0 0 8,000 0 0 0
10,708 19,247 103,158 21,744 23,825 10,529 107,587
I 0 0 0 0 0 0 0
(10,708) (19,247) (103,158) (13,744) (23,825) (10,529) (107,587)
(10,708) (19,247) (103,158) (13,744) (23,825) (10,529) (107,587)
I $ 0 $ 0 $ 0 $ 8,000 $ 0 $ 0 $ 0
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I
I 49
430 I I 432 I I 433 I I 435 I I 438
Cottages
Parkside Parkside of Cedar Creek
3rd 4th Albertville Industrial Cedar Creek
Addition Addition TIF #7 Park North
ASSETS
Cash and Investments $ 1 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 $ 19,470 $ 32,640 $ 31,082 $ 2,951 $ 150,067
Accounts Payable 0 0 0 0 1,136
Contracts and Retainages Payable 0 0 0 0 0
Deferred Revenue 0 0 0 0 0
Total Liabilities 19,470 32,640 31,082 2,951 151,203
Fund Balance:
Umeserved -
Designated for Capital Outlay 0 0 0 0 0
Undesignated (19,470) (32,640) (31,082) (2,951 ) (151,203)
Total Fund Balance (Deficit) (19,470) (32,640) (31,082) (2,951 ) (151,203)
TOTAL LIABILITIES AND
FUND BALANCE $ 0 $ 0 $ 0 $ 0 $ 0
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I
I
I
I
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I
I
CITY OF ALBERTVILLE, MINNESOTA
CAPITAL PROJECTS FUNDS
COMBINING BALANCE SHEET
December 31, 2002
With Comparative Totals for December 31,2001
( Continued)
I
I
I
I " \
439 I I 440 I I 442 I I 443 I I 444 I I 445 I 446
I
Center Parkside Barthel Bus
I Oaks 1 st Commercial Garage Karston Psyk's Albertville
Addition Park TIF #9 Cove 7th Addition Crossings Fire Hall
$ 0 $ 0 $ 0 $ 0 $ 0 $ 0 $ 0
I 0 0 0 0 0 0 858,270
0 0 0 0 0 0 0
I $ 0 $ 0 $ 0 $ 0 $ 0 $ 0 $ 858,270
I $ 126,236 $ 44,858 $ 6,351 $ 20,107 $ 25,618 $ 14,221 $ 890,479
0 0 0 0 0 0 0
0 0 0 0 0 0 0
I 0 0 0 0 0 0 0
126,236 44,858 6,351 20,107 25,618 14,221 890,479
I 0 0 0 0 0 0 0
(126,236) (44,858) (6,351) (20,107) (25,618) (14,221) (32,209)
I (126,236) (44,858) (6,351) (20,107) (25,618) (14,221) (32,209)
$ $
$ 0 $ 0 0 0 $ 0 $ 0 $ 858,270
I
I
I
I
I
II
I 50
447
I I
448
I I
449
I I
450
I I
451
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
CITY OF ALBERTVILLE, MINNESOTA
CAPITAL PROJECTS FUNDS
COMBINING BALANCE SHEET
December 31,2002
With Comparative Totals for December 31, 2001
(Continued)
57th Street CSAH 19 62nd Street Albertville Mooney
Improvement Improvement Improvement Villas Addition
ASSETS
Cash and Investments $ 0 $ 0 $ 70,283 $ 0 $ 0
Cash in Trust 0 0 0 0 0
Special Assessments Receivable -
Deferred 0 0 0 0 0
TOTAL ASSETS $ 0 $ 0 $ 70,283 $ 0 $ 0
LIABILITIES AND FUND BALANCE
Liabilities:
Cash Overdraft $ 149,718 $ 84,082 $ 0 $ 284,841 $ 10,852
Accounts Payable 350 19,103 0 1,194 0
Contracts and Retainages Payable 0 0 0 0 0
Deferred Revenue 0 0 0 0 0
Total Liabilities 150,068 103,185 0 286,035 10,852
Fund Balance:
Unreserved -
Designated for Capital Outlay 0 0 70,283 0 0
Undesignated (150,068) (103,185) 0 (286,035) (10,852)
Total Fund Balance (Deficit) (150,068) (103,185) 70,283 (286,035) (10,852)
TOTAL LIABILITIES AND
FUND BALANCE $ 0 $ 0 $ 70,283 $ 0 $ 0
y
I
I
I
I
452 I I 453 I I 454 I I 456 I I 457 I I 460 I I 461
I Towne
Lakes
I Traffic Kolleville SW Lift Towne Heuring WWTF Lift
Light Estates Station Lakes Meadows Expansion Station
$ 0 $ 0 $ 0 $ 0 $ 0 $ 406,124 $ . 0
I 0 0 0 0 0 0 0
0 0 0 0 0 0 0
I $ 0 $ 0 $ 0 $ 0 $ 0 $ 406,124 $ 0
I $ 312,919 $ 37,943 $ 636,634 $ 136,439 $ 36,172 $ 0 $ 28,032
2,628 1,532 1,590 6,376 338 657 1,663
0 0 28,848 0 0 0 0
I 0 0 0 0 0 0 0
315,547 39,475 667,072 142,815 36,510 657 29,695
I 0 0 0 0 0 405,467 0
(315,547) (39,475) (667,072) (142,815) (36,510) 0 (29,695)
(315,547) (39,475) (667,072) (142,815) (36,510) 405,467 (29,695)
I
$ 0 $ 0 $ 0 $ 0 $ 0 $ 406,124 $ 0
I
I
I
I
I
I
I 51
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
CITY OF ALBERTVILLE, MINNESOTA
CAPITAL PROJECTS FUNDS
COMBINING BALANCE SHEET
December 31, 2002
With Comparative Totals for December 31,2001
( Continued)
462
I I
463
I I
464
NW Albertville
Commerical Business Totals
Cobom's Park Park 2002 2001
ASSETS
Cash and Investments $ 0 $ 0 $ 0 $ 662,230 $ 733,581
Cash in Trust 0 0 0 858,270 848,215
Special Assessments Receivable -
Deferred 397,019 0 0 405,019 10,000
TOTAL ASSETS $ 397,019 $ 0 $ 0 $ 1,925,519 $ 1,591,796
LIABILITIES AND FUND BALANCE
Liabilities:
Cash Overdraft $ 278,495 $ 1,126,652 $ 2,321 $ 4,779,378 $ 2,546,416
Accounts Payable 2,324 23,514 0 62,405 243,811
Contracts and Retainages Payable 0 173,272 0 202,120 32,952
Deferred Revenue 397,019 0 0 405,019 10,000
Total Liabilities 677,838 1,323,438 2,321 5,448,922 2,833,179
Fund Balance:
Unreserved -
Designated for Capital Outlay 0 0 0 661,573 692,489
Undesignated (280,819) (1,323,438) (2,321 ) (4,184,976) ( 1 ,933,872)
Total Fund Balance (Deficit) (280,819) (1,323,438) (2,321) (3,523,403) (1,241,383)
TOTAL LIABILITIES AND
FUND BALANCE $ 397,019 $ 0 $ 0 $ 1,925,519 $ 1,591,796
52
I
CITY OF ALBERTVILLE, MINNESOTA I
CAPITAL PROJECTS FUNDS
COMBINING STATEMENT OF REVENUES, EXPENDITURES I
AND CHANGES IN FUND BALANCE
Year Ended December 31, 2002
With Comparative Totals for the Year Ended December 31, 2001
I I I I I
400 406 407 408 409
TIF #8 TIF #9 I
Closed TIF #6 TIF #7 Vetsch Barthel
Capital Fraser Senior Custom Bus I
Projects Steel Housing Cabinets Garage
REVENUES:
Property Taxes $ 0 $ 0 $ 43,525 $ 6,313 $ 8,013
Special Assessments 0 0 0 0 0 I
Charges for Services 0 0 0 0 0
Miscellaneous Revenues -
Investment Income 3,835 (454) 290 (8) 111
Other Revenues 0 0 0 0 0 I
Total Revenues 3,835 (454) 43,815 6,305 8,124
EXPENDITURES:
Other 0 0 41,294 6,313 6,410 I
Capital Outlay -
Engineer Fees 0 0 0 0 0
Legal Fees 0 0 0 0 0
Other Professional Services 0 0 0 0 0 I
Total Expenditures 0 0 41,294 6,313 6,410
EXCESS OF REVENUES OVER
(UNDER) EXPENDITURES 3,835 (454) 2,521 (8) 1,714 I
OTHER FINANCING SOURCES:
Operating Transfer In 0 0 0 0 0
EXCESS OF REVENUES AND OTHER I
FINANCING SOURCES OVER (UNDER)
EXPENDITURES 3,835 (454) 2,521 (8) 1,714
FUND BALANCE (DEFICIT) - January 1 160,332 (537) 12,566 (401) 4,855 I
FUND BALANCE (DEFICIT) - December 31 $ 164,167 $ (991) $ 15,087 $ (409) $ 6,569
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I 410 411 I I 421 I I 426 I I 427 I I 428 429
I Barthel
TIF #11 Industrial North NE Sewer CSAH
TIF # 1 0 Land of Drive & Frontage Summerfield & Water 19/37
I Mold-Tech Lakes Tile 52nd Street Road Addition Extension Intersection
$ 10,847 $ 34,291 $ 0 $ 0 $ 0 $ 0 $ 0
0 0 0 1,400 0 0 0
I 0 0 0 0 0 0 0
(222) (400) (2,141) (1,665) (494) (992) (1,764)
0 0 11,545 0 0 0 0
I 10,625 33,891 9,404 (265) (494) (992) (1,764)
10,847 34,291 0 0 0 0 0
I 0 0 0 15,432 0 0 0
0 0 0 0 0 0 1,333
0 0 0 0 0 0 244
I 10,847 34,291 0 15,432 0 0 1,577
(222) (400) 9,404 (15,697) (494) (992) (3,341 )
I 0 0 0 0 0 0 0
I (222) (400) 9,404 (15,697) (494) (992) (3,341 )
I (10,486) (18,847) ( 112,562) 1,953 (23,331 ) (9,537) (104,246)
$ (10,708) $ (19,247) $ (103,158) $ (13,744) $ (23,825) $ (10,529) $ (107,587)
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FUND BALANCE (DEFICIT) - January 1
FUND BALANCE (DEFICIT) - December 31
(404)
(19,066)
$ (19,470)
(677)
(31,963)
$ (32,640)
(645)
(30,437)
$ (31,082)
(61)
(2,890)
$ (2,951)
(21,921 )
(129,282)
$ (151,203)
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CITY OF ALBERTVILLE, MINNESOTA
CAPITAL PROJECTS FUNDS
COMBINING STATEMENT OF REVENUES, EXPENDITURES
AND CHANGES IN FUND BALANCE
Year Ended December 31, 2002
With Comparative Totals for the Year Ended December 31, 2001
(Continued)
REVENUES:
Property Taxes
Special Assessments
Charges for Services
Miscellaneous Revenues -
Investment Income
Other Revenues
Total Revenues
430 432 433 435 438
Cottages
Parkside Parkside of Cedar Creek
3rd 4th Albertville Industrial Cedar Creek
Addition Addition TIF #7 Park North
$ 0 $ 0 $ 0 $ 0 $ 0
0 0 0 0 0
0 0 0 0 0
(404) (677) (645) (61) (2,914)
0 0 0 0 0
(404) (677) (645) (61) (2,914)
0 0 0 0 0
0 0 0 0 17,127
0 0 0 0 1,237
0 0 0 0 643
0 0 0 0 19,007
(404) (677) (645) (61) (21,921)
0 0 0 0 0
EXPENDITURES:
Other
Capital Outlay -
Engineer Fees
Legal Fees
Other Professional Services
Total Expenditures
EXCESS OF REVENUES OVER
(UNDER) EXPENDITURES
OTHER FINANCING SOURCES:
Operating Transfer In
EXCESS OF REVENUES AND OTHER
FINANCING SOURCES OVER (UNDER)
EXPENDITURES
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I 439 440 442 443 444 445 446
I Center Parkside Barthel Bus
Oaks 1 st Commercial Garage Karston Psyk's Albertville
I Addition Park TIF #9 Cove 7th Addition Crossings Fire Hall
$ 0 $ 0 $ 0 $ 0 $ 0 $ 0 $ 0
0 0 0 0 0 0 0
I 0 0 0 0 0 0 0
(2,607) (731 ) (131) (417) (532) (120) (8,429)
0 0 0 0 0 0 0
I (2,607) (731 ) (131) (417) (532) ( 120) (8,429)
0 0 0 0 0 0 0
I 667 38,375 0 0 0 11,256 0
0 28 0 0 0 0 0
0 107 0 0 0 0 0
I 667 38,510 0 0 0 11,256 0
(3,274) (39,241) (131 ) (417) (532) (11,376) (8,429)
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0 0 0 0 0 0 0
I (3,274) (39,241) (131 ) (417) (532) (11,376) (8,429)
I (122,962) (5,617) (6,220) (19,690) (25,086) (2,845) (23,780)
$ (126,236) $ (44,858) $ (6,351) $ (20,107) $ (25,618) $ (14,221) $ (32,209)
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CITY OF ALBERTVILLE, MINNESOTA
CAPITAL PROJECTS FUNDS
COMBINING STATEMENT OF REVENUES, EXPENDITURES
AND CHANGES IN FUND BALANCE
Year Ended December 31, 2002
With Comparative Totals for the Year Ended December 31, 2001
(Continued)
EXCESS OF REVENUES OVER
(UNDER) EXPENDITURES
OTHER FINANCING SOURCES:
Operating Transfer In
447 448 449 I I 450 I I 451
~"o.,V\f lC5
I".,~,J
57th Street CSAH 19 62nd Street Albertville Mooney
Improvement Improvement Improvement Villas Addition
$ 0 $ 0 $ 0 $ 0 $ 0
0 0 0 0 0
0 0 0 0 0
(3,015) (1,641) 1,458 (4,811) (223)
0 0 0 0 200
(3,015) (1,641) 1,458 (4,811) (23)
0 0 0 0 0
6,300 35,571 0 90,098 0
0 467 0 3,059 302
0 78 0 561 78
6,300 36,116 0 93,718 380
(9,315) (37,757) 1,458 (98,529) (403)
0 0 0 0 0
REVENUES:
Property Taxes
Special Assessments
Charges for Services
Miscellaneous Revenues -
Investment Income
Other Revenues
Total Revenues
EXPENDITURES:
Other
Capital Outlay -
Engineer Fees
Legal Fees
Other Professional Services
Total Expenditures
EXCESS OF REVENUES AND OTHER
FINANCING SOURCES OVER (UNDER)
EXPENDITURES
(9,315) (37,757) 1,458 (98,529) (403)
(140,753) (65,428) 68,825 (187,506) (10,449)
$ (150,068) $ (103,185) $ 70,283 $ (286,035) $ (10,852)
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~ -^"^ ...
<.~~
-( ...IW<..o
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FUND BALANCE (DEFICIT) - January 1
FUND BALANCE (DEFICIT) - December 31
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I 452 453 454 456 457 460 461
I Towne
Lakes
Traffic Kolleville SW Lift Towne Heuring WWTF Lift
I Light Estates Station Lakes Meadows Expansion Station
$ 0 $ 0 $ 0 $ 0 $ 0 $ 0 $ 0
0 0 0 0 0 0 0
I 0 0 0 10,450 0 0 0
(6,166) (659) (7,430) (2,309) (697) 8,770 (476)
0 0 0 0 0 0 0
I (6,166) (659) (7,430) 8,141 (697) 8,770 (476)
0 0 0 0 0 0 0
I 12,124 11,921 29,879 38,883 3,044 24,466 0
5,618 1,485 742 11,110 1,612 2,198 0
3,734 646 249,957 5,021 0 20,597 18,100
I 21,476 14,052 280,578 55,014 4,656 47,261 18,100
I (27,642) (14,711) (288,008) (46,873) (5,353) (38,491) (18,576)
0 0 0 0 0 0 0
I (27,642) (14,711) (288,008) (46,873) (5,353) (38,491) (18,576)
I (287,905) (24,764) (379,064) (95,942) (31,157) 443,958 (11,119)
$ (315,547) $ (39,475) $ (667,072) $ (142,815) $ (36,510) $ 405,467 $ (29,695)
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CITY OF ALBERTVILLE, MINNESOTA
--'->
CAPITAL PROJECTS FUNDS
COMBINING STATEMENT OF REVENUES, EXPENDITURES
AND CHANGES IN FUND BALANCE
Year Ended December 31, 2002
With Comparative Totals for the Year Ended December 31,2001
(Continued)
EXCESS OF REVENUES OVER
(UNDER) EXPENDITURES
OTHER FINANCING SOURCES:
Operating Transfer In
462 I I 463 464
NW Albertville
Commercial Business Totals
Coborn's Park Park 2002 2001
$ 0 $ 0 $ 0 $ 102,989 $ 153,736
0 125,000 0 126,400 2,960
2,250 0 0 12,700 1,200
(274) (5,392) (24) (44,461) 58,791
0 0 0 11,745 7,972
1,976 119,608 (24) 209,373 224,659
0 0 0 99,155 244,785
11,188 326,482 2,242 675,055 327,505
1,567 3,273 55 34,086 70,697
270,040 1,113,291 0 1,683,097 2,274,857
282,795 1,443,046 2,297 2,491,393 2,917,844
(280,819) (1,323,438) (2,321) (2,282,020) (2,693,185)
0 0 0 0 1,000,000
REVENUES:
Property Taxes
Special Assessments
Charges for Services
Miscellaneous Revenues -
Investment Income
Other Revenues
Total Revenues
EXPENDITURES:
Other
Capital Outlay -
Engineer Fees
Legal Fees
Other Professional Services
Total Expenditures
EXCESS OF REVENUES AND OTHER
FINANCING SOURCES OVER (UNDER)
EXPENDITURES
FUND BALANCE (DEFICIT) - January 1
FUND BALANCE (DEFICIT) - December 31
(280,819)
o
$ (280,819)
(1,323,438)
o
(2,321 )
o
(2,282,020)
(1,241,383)
$ (3,523,403)
(1,693,185)
451,802
$ (1,241,383)
$ (1,323,438)
$ (2,321)
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CITY OF ALBERTVILLE, MINNESOTA
ENTERPRISE FUNDS
Enterprise Funds are established to account for the financing of self-supporting activities of
governmental units which render services on a user charge basis to the general public. The most
universal type of government enterprise is the public utility engaged in the provision of such
basic services as water, electricity, and natural gas. Sanitary sewer systems financed by user
charges have also assumed the status of public utility operations in many urban areas, and many
cities have combined water and sewer systems under the same management.
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CITY OF ALBERTVILLE, MINNESOTA I
ENTERPRISE FUNDS
COMBnITNGBALANCESHEET I
December 31, 2002
With Comparative Totals for December 31,2001 I
601 I l 602 I I 604
Sanitary Storm I
ASSETS Sewer Water Water
CURRENT ASSETS: I
Cash and Cash Equivalents $ 0 $ 1,145,741 $ 429,159
Accounts Receivable 114,793 86,332 13,277
Due from Other Governments 26,832 28,621 85,124 I
Due from Other Funds 0 0 0
Total Current Assets 141,625 1,260,694 527,560
FIXED ASSETS: I
Land 190,269 0 0
Sewer Plant and Lines 7,418,792 0 0
Water Main 0 436,894 0 I
Machinery and Equipment 180,021 28,410 0
Construction in Progress 381,591 288,609 144,305
Total Cost 8,170,673 753,913 144,305 I
Less: Accumulated Depreciation (1,155,971 ) (32,730) 0
Net Fixed Assets 7,014,702 721,183 144,305
TOTAL ASSETS $ 7,156,327 $ 1,981,877 $ 671,865 I
LIABILITIES AND FUND EQUITY I
CURRENT LIABILITIES:
Cash Overdraft $ 20,112 $ 0 $ 0
Accounts Payable 3,012 1,828 0 I
Due to Other Governments 0 92,021 0
Current Maturities of Long-Term Debt 99,931 0 0
Total Current Liabilities 123,055 93,849 0 I
LONG-TERM DEBT, LESS CURRENT PORTION
G.O. Revenue Notes - PFA 882,315 0 0
Total Liabilities 1,005,370 93,849 0 I
FUND EQUITY: I
Contributed Capital 5,905,041 725,503 144,305
Retained Earnings -
Reserved for Operating Capital 0 0 0 I
Unreserved 245,916 1,162,525 527,560
Total Fund Equity 6,150,957 1,888,028 671,865
TOTAL LIABILITIES AND I
FUND EQUITY $ 7,156,327 $ 1,981,877 $ 671,865
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I Totals
2002 2001
I $ 1,574,900 $ 1,136,576
214,402 174,518
I 140,577 136,776
0 40,000
1,929,879 1,487,870
I 190,269 190,269
7,418,792 3,869,925
I 436,894 436,894
208,431 155,285
814,505 3,483,505
I 9,068,891 8,135,878
(1,188,701) (1,023,266)
7,880,190 7,112,612
I $ 9,810,069 $ 8,600,482
I $ 20,112 $ 104,043
I 4,840 2,978
92,021 90,673
99,931 62,587
216,904 260,281
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882,315 982,400
I 1,099,219 1,242,681
I 6,774,849 5,894,983
I 0 97,894
1,936,001 1,364,924
8,710,850 7,357,801
I $ 9,810,069 $ 8,600,482
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CITY OF ALBERTVILLE, MINNESOTA I
ENTERPRISE FUNDS
COMBINING STATEMENT OF REVENUES, EXPENSES AND I
CHANGES IN RETAINED EARNINGS
Year Ended December 31, 2002 I
With Comparative Totals for the Year Ended December 31, 2001
601 I I 602 I t 604 I
Sanitary Storm
Sewer Water Water I
OPERATING REVENUES:
Charges for Services $ 411 ,244 $ 100,058 $ 100,500 I
Water Trunk Fees 0 61,963 0
Water Availability Charges 0 155,489 0
Penalties 9,265 17,622 691 I
Total Operating Revenues 420,509 335,132 101,191
OPERATING EXPENSES: I
Salaries and Benefits 52,145 51,238 0
Repairs and Maintenance 4,919 7,704 1,915
Supplies 50,760 10,205 0
Professional Services 4,085 1,120 651 I
Utilities 28,300 0 0
Depreciation 152,000 13,435 0
Miscellaneous 158 0 0 I
Total Operating Expenses 292,367 83,702 2,566
OPERATING INCOME 128,142 251,430 98,625 I
NONOPERATING REVENUES
(EXPENSES): I
Water Meter Sales 0 34,995 0
Interest Income (Expense) (550) 25,266 7,289
Bond Interest Expense and Fiscal Charges (37,189) 0 0 I
Water Meter Purchases 0 (34,825) 0
Total Nonoperating Revenues
(Expenses) (37,739) 25,436 7,289
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NET INCOME 90,403 276,866 105,914
RETAINED EARNINGS - January 1 155,513 885,659 421,646 I
RETAINED EARNINGS - December 31 $ 245,916 $ 1,162,525 $ 527,560
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CITY OF ALBERTVILLE, MINNESOTA
ENTERPRISE FUNDS
COMBINING STATEMENT OF CASH FLOWS
Year Ended December 31, 2002
With Comparative Totals for the Year Ended December 31, 2001
601 I I 602 I I 604
Sanitary Storm
Sewer Water Water
CASH FLOWS FROM OPERATING ACTIVITIES:
Operating Income $ 128,142 $ 251,430 $ 98,625
Adjustments to Reconcile Operating Income to
Net Cash Provided by Operating Activities:
Depreciation 152,000 13,435 0
Change in Assets and Liabilities:
(Increase) Decrease in Accounts Receivable (57,167) 19,684 (2,401)
(Increase) in Due from Other Governments (580) (2,967) (254)
(Decrease) Increase in Accounts Payable 285 1,577 0
Increase (Decrease) in Due to Other Governments 0 1,348 0
Total Adjustments 94,538 33,077 (2,655)
Net Cash Provided by Operating Activities 222,680 284,507 95,970
CASH FLOWS FROM NONCAPIT AL FINANCING ACTMTIES
Advances to Other Funds 0 0 40,000
CASH FLOWS FROM CAPITAL AND RELATED FINANCING
ACTIVITIES:
Principal Payments on Bonds (62,741) 0 0
Interest and Fiscal Charges Paid on Bonds (37,189) 0 0
Proceeds from Sales of Water Meters 0 34,995 0
Acquisition of Water Meters 0 (34,825) 0
Acquisition of Fixed Assets (38,269) (14,878) 0
Net Cash Provided (Used) by Capital and Related
Financing Activities (138,199) (14,708) 0
CASH FLOWS FROM INVESTING ACTIVITIES:
Interest on Investments (550) 25,266 7,289
Net Increase in Cash and Cash Equivalents 83,931 295,065 143,259
Cash and Cash Equivalents, January 1 (104,043) 850,676 285,900
Cash and Cash Equivalents, December 31 $ (20,112) $ 1,145,741 $ 429,159
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CITY OF ALBERTVILLE, MINNESOTA
GENERAL LONG-TERM DEBT
ACCOUNT GROUP
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General obligation bonds and other forms of long-term debt supported by general revenues are
obligations of a governmental unit as a whole and not its individual constituent funds.
Moreover, the proceeds of such debt may be spent on facilities which are utilized in the
operations of several funds. For these reasons the amount of unmatured, long-term indebtedness
which is backed by the full faith and credit of the government should be recorded and accounted
for in a separate self-balancing group of accounts titled the "General Long-Term Debt Group of
Accounts." This debt group will include, in addition to conventional general obligation bonds,
time warrants and notes which have a maturity of more than one year from date of issuance.
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CITY OF ALBERTVILLE, MINNESOTA
STATEMENT OF GENERAL LONG-TERM DEBT
December 31, 2002 and 2001
TOTAL GENERAL LONG-TERM DEBT
2002 2001
$ 201,418 $ 760,785
4,304,144 4,582,899
$ 4,505,562 $ 5,343,684
$ 10,000 $ 25,000
65,000 95,000
80,000 100,000
40,000 60,000
165,000 195,000
820,000 850,000
1,010,000 1,395,000
2,265,000 2,550,000
50,562 73,684
$ 4,505,562 $ 5,343,684
AMOUNT AVAILABLE AND TO BE PROVIDED
FOR PAYMENT OF GENERAL LONG-TERM DEBT:
Amount Available in Debt Service Funds
Amount to be Provided for Retirement of
General Long-Term Debt
TOTAL AVAILABLE AND TO BE PROVIDED
GENERAL LONG-TERM DEBT:
G.O. Refunding Bond of 1989
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 1996A
Lease Revenue Bonds - Public Facility, 1999
G.O. Improvement Bonds, Series 1999A
G.O. Sewer Revenue Bonds, Series 2000A
Capital Lease Payable
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~DV
KERN. DEWENTER.VI ERE
CITY OF ALBERTVILLE, MINNESOTA
INDEPENDENT AUDITORS' REPORT ON
COMPLIANCE WITH MINNESOTA STATUTES
July 3, 2003
Honorable Mayor and City Council
City of Albertville
Albertville, Minnesota
We have audited the general purpose financial statements of the City of Albertville as of and for
the year ended December 31,2002, and have issued our report thereon dated July 3,2003.
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 for Local
Government, promulgated by the Legal Compliance Task Force pursuant to Minnesota Statute
Sec. 6.65. Accordingly, the audit included such tests of the accounting records and such other
auditing procedures as we considered necessary in the circumstances.
The Minnesota Legal Compliance Audit Guide for Local Government covers five main
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.
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-Vl..1-, 7:X-W~/L-tv\..;, VUA-<., /--I-d.
KERN, 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, 2002
PRIOR YEAR FINDING:
Collateral
Minnesota Statutes Sec. 118A.01 and 118A.03, 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
Collateral
Premier Bank
$
4,563,178
$
3,018,000
$ 1,545,178
We recommended the City monitor collateral levels to ensure proper collateralization.
CORRECTIVE ACTION TAKEN:
The City obtained the necessary collateral to secure deposits.
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