2003 Audited Financial Statements
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
CITY OF ALBERTVILLE
Wright County, Minnesota
TABLE OF CONTENTS
ELECTED OFFICIALS AND ADMINISTRATION.. 0.0. 0.. ..... 0.... o. 0" ....... ....... .......... 0.0...
INDEPENDENT AUDITORS' REPORT 0... .............. 0.............0........ ............. 0.0. 0........... 0"
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 .......... ............ ........ .................. o. 0... ..... 0......... ..... 0.... 0......0....
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 ...... 0 ......... .......................... ............ ...... 0.......... ............. .....
COMBINING, INDIVIDUAL FUND AND ACCOUNT GROUP
FINANCIAL STATEMENTS:
General Fund:
Comparative Balance Sheet. ......... ............ ........ .............................. ....... 0" .......................
Statement of Revenues, Expenditures and Changes in Fund Balance -
Budget and Actual. 0...... 0....... ................ ................... 0......................... 0............ 0 .............
Special Revenue Funds:
Combining Balance Sheet........... 0 ........... 0................ 0... 0..... .............00. 0... 0 0........... ..... 0.... o.
Combining Statement of Revenues, Expenditures and Changes in Fund Balance .........
Debt Service Funds:
Combining Balance Sheet ..... ......... ..... ....... ............0................ ........00... ...........................
Combining Statement of Revenues, Expenditures and Changes in Fund Balance .........
Capital Projects Funds:
Combining Balance Sheet ...................... o. ............ ..... ................... ..... .............. 0 ..........0... 0
Combining Statement of Revenues, Expenditures and Changes in Fund Balance .........
Enterprise Funds:
Combining Balance Sheet...................................................................... 0.. 0.............. 0 0.....
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 ..... ................ ............ ............ ...... ..... .............. ... ........
AUDITORS' REPORT ON LEGAL COMPLIANCE ....................................................
1
2
6
8
10
12
13
14
46
47
54
56
60
64
68
74
86
88
90
93
95
97
98
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
CITY OF ALBERTVILLE
Wright County, Minnesota
ELECTED OFFICIALS AND ADMINISTRATION
December 31, 2003
Term of
Elected Officials Position Office Expires
Don Peterson Mayor December 31, 2004
Tom Fay Council Member December 31, 2006
Ron Klecker Council Member December 31, 2004
LeRoy Berning Council Member December 31, 2004
Dorothy Rich Council Member December 31, 2004
Administration
Larry Kruse
Administrator
Indefinite
1
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
~DV
KERN. DEWENTER.YIERE
INDEPENDENT AUDITORS' REPORT
May 28, 2004
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, 2003, 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, 2003.
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, 2003, 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.
2
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
K-DV
KERN. DEWENTER.VIERE
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.
KIA-It-,7)eJ;Jen.:f,fA;, Vuu., L,f-d.
KERN, DEWENTER, VIERE, LTD.
Minneapolis, Minnesota
3
(THIS PAGE LEFT BLANK INTENTIONALLY.)
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
4 I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
GENERAL PURPOSE FINANCIAL STATEMENTS
5
SlN3W3l V lS IVI;)NVNId 3S0<llifld TV~3N3D
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
~
I '1-/
I
I
Proprietary Fiduciary
I Fund Type Fund Type Account Groups
General
Fixed General Totals
Assets Long-Term (Memorandum Only)
I Enterprise Agency (Unaudited) Debt 2003 2002
$ 2,059,602 $ 248,167 $ $ $ 12,613,380 $ 10,189,843
I 864,660 860,745
86,460 86,069
37,827 40,746
I 1,108,862 1,008,346
97,704 214,641
I 257,467 1,525,663 214,402
22,155 24,009
144,429 431,864 162,758
84,798 98,435
I 7,870,108 1,396,476 9,266,584 8,978,273
370,959 370,959 201,418
I 6,502,870 6,502,870 4,304,144
$10,331,606 $ 248,167 $ 1,396.476 $ 6,873,829 $33,013,786 $ 26,383,829
I
$ $ $ $ $ 4,207,826 $ 5,013,815
I 6,689 248,167 353,251 354,913
150,241 239,827
992 3,702
189,450 189,450 92,021
I 1,329,191 1,362,168
6,847,800 6,847,800 4,455,000
914,368 914,368 982,246
26,029 26,029 50,562
I 1,110,507 248,167 6,873,829 14,019,148 12,554,254
1,396,476 1,396,476 1,098,083
I 6,858,678 6,858,678 6,774,849
I 2,362,421 2,362,421 1,936,001
818,919 711,000
I 2,994,685 1,993,374
4,563,459 1,316,268
9,221,099 1,396,476 18,994,638 13,829,575
I $ 10,331,606 $ 248,167 $ 1,396.476 $ 6,873,829 $ 33,013,786 $ 26,383,829
I 7
I I
CITY OF ALBERTVILLE I
Wright County, Minnesota
COMBINED STATEMENT OF REVENUES, EXPENDITURES
AND CHANGES IN FUND BALANCE - ALL GOVERNMENTAL FUND TYPES I
Year Ended December 31, 2003
Governmental Fund Types I
Special Debt Capital
General Revenue Service Projects I
Revenues:
Taxes $ 1,251,311 $ $ 150,589 $ 101,335
Special Assessments 441,178 275,967
Licenses and Permits 691,839 I
Intergovernmental 98,229
Charges for Services 55,943 1,508,145 1,255,711
Miscellaneous 46,038 78,176 (1,289) (32,133) I
Total Revenues 2,143,360 1,586,321 590,478 1,600,880
Expenditures: I
Current:
General Government 568,405
Public Safety 564,671 I
Public Works 607,628
Sanitation 38,668
Culture and Recreation 165,619
Economic Development 8,655 109,610 I
Miscellaneous 94,881
Capital Outlay 2,313,324
Debt Service: I
Principal 26,029 842,200
Interest and Fiscal Charges 1,588 214,071
Total Expenditures 1,981,263 109,610 1,056,271 2,408,205 I
Excess of Revenues Over
(Under) Expenditures 162,097 1,476,711 (465,793) (807,325) I
Other Financing Sources (Uses):
Bond Proceeds 59,339 3,186,213
Sale of General Fixed Assets 739,848 I
Operating Transfers In 125,000 88,496
Operating Transfers Out (26,716) (186,780)
Total Other Financing Sources (Uses) 739,848 157,623 3,087,929 I
Excess of Revenues and Other
Financing Sources Over (Under) I
Expenditures and Other Financing Uses 901,945 1,476,711 (308,170) 2,280,604
Fund Balance - January 1 1,671,345 5,190,959 681,741 (3,523,403)
Residual Equity Transfers (32,795) (354,189) (2,612) 394,927 I
Fund Balance - December 31 $ 2,540,495 $ 6,313,481 $ 370,959 $ (847,872) I
The notes to the financial statements are an integral part of this statement. I
8
I
,//'
I
I
I Totals
(Memorandum Only)
2003 2002
I $ 1,503,235 $ 1,473,046
717,145 434,376
I 691,839 587,020
98,229 201,191
2,819,799 1,725,558
I 90,792 166,140
5,921,039 4,587,331
I 568,405 571,826
564,671 822,875
I 607,628 271,960
38,668 42,393
165,619 218,974
I 118,265 3,802
94,881 99,155
2,313,324 2,392,238
I 868,229 838,122
215,659 248,245
I 5,555,349 5,509,590
365,690 (922,259)
I
3,245,552
I 739,848 497,386
213,496 495,323
(213,496) (495,323)
I 3,985,400 497,386
I 4,351,090 (424,873)
4,020,642 4,445,515
I 5,331
I $ 8,377,063 $ 4,020,642
I 9
I
CITY OF ALBERTVILLE I
Wright County, Minnesota
COMBINED STATEMENT OF REVENUES, EXPENDITURES AND I
CHANGES IN FUND BALANCE - BUDGET AND ACTUAL -
GENERAL AND SPECIAL REVENUE FUND TYPES
Year Ended December 31,2003
I
General Fund
Over I
(Under)
Budget Actual Budget
Revenues: I
Taxes $ 1,347,817 $ 1,251,311 $ (96,506)
Licenses and Permits 431,200 691,839 260,639
Intergovernmental 110,604 98,229 (12,375) I
Charges for Services 51,500 55,943 4,443
Fines 100 (100)
Miscellaneous 25,950 46,038 20,088 I
Total Revenues 1,967,171 2,143,360 176,189
Expenditures: I
Current:
General Government 540,594 568,405 27,811
Public Safety 623,699 564,671 (59,028) I
Public Works 565,865 607,628 41,763
Sanitation 35,000 38,668 3,668
Culture and Recreation 179,312 165,619 (13,693)
Economic Development 22,700 8,655 (14,045) I
Debt Service:
Principal 26,029 26,029
Interest 1,588 1,588 I
Total Expenditures 1,967,170 1,981,263 14,093
Excess of Revenues Over (Under) Expenditures 162,097 162,096 I
Other Financing Sources (Uses):
Sale of General Fixed Assets 739,848 739,848 I
Total Other Financing Sources (Uses) 739,848 739,848
Excess of Revenues and Other Financing Sources I
Over (Under) Expenditures and Other Financing Uses $ 901,945 $ 901,944
Fund Balance - January 1 1,671,345 I
Residual Equity Transfers (Out) (32,795)
Fund Balance - December 31 $ 2,540,495 I
I
The notes to the financial statements are an integral part of this statement. I
10
I
"
CITY OF ALBERTVILLE I
Wright County, Minnesota
COMBINED STATEMENT OF REVENUES, EXPENSES AND I
CHANGES IN RETAINED EARNINGS - ALL PROPRIETARY FUND TYPES
Year Ended December 31, 2003
(With Comparative Totals for the Year Ended December 31,2002) I
Totals I
2003 2002
Operating Revenues: I
Charges for Services $ 632,703 $ 611 ,802
Water Trunk Fees 144,626 61,963
Water Availability Charges 112,945 155,489 I
Penalties 33,679 27,578
Total Operating Revenues 923,953 856,832
Operating Expenses: I
Salaries and Benefits 144,797 103,383
Repairs and Maintenance 26,518 14,538 I
Supplies 43,882 60,965
Professional Services 65,979 5,856
Utilities 32,822 28,300 I
Depreciation 179,372 165,435
Miscellaneous 2,206 158
Total Operating Expenses 495,576 378,635 I
Operating Income 428,377 478,197 I
Nonoperating Revenues (Expenses):
Water Meter Sales 38,105 34,995 I
Interest Income 15,406 32,005
Interest Expense and Fiscal Charges (32,052) (37,189)
Water Meter Purchases (18,085) (34,825) I
Total Nonoperating Revenues (Expenses) 3,374 (5,014)
Net Income 431,751 473,183 I
Retained Earnings - January 1 1,936,001 1,462,818
I
Residual Equity Transfers (5,331)
Retained Earnings - December 31 $ 2,362,421 $ 1,936,001 I
I
The notes to the financial statements are an integral part of this statement. I
12
I
/' CITY OF ALBERTVILLE
I Wright County, Minnesota
COMBINED STATEMENT OF CASH FLOWS -
I ALL PROPRIETARY FUND TYPES
Year Ended December 31,2003
(With Comparative Totals for the Year Ended December 31,2002)
I
Totals
I 2003 2002
Cash Flows from Operating Activities:
Operating Income $ 428,377 $ 478,197
I Adjustments to Reconcile Operating Income to
Net Cash Provided by Operating Activities:
Depreciation 179,372 165,435
I Change in Assets and Liabilities:
(Increase) Decrease in Accounts Receivable (43,066) (39,884)
(Increase) Decrease in Due from Other Governments (3,853) (3,801)
I (Decrease) in Accounts Payable 1,851 1,862
Increase (Decrease) in Due to Other Governments 97,429 1,348
Total Adjustments 231,733 124,960
I Net Cash Provided by Operating Activities 660,110 603,157
Cash Flows from Noncapital Financing Activities:
I Advances to Other Funds 40,000
Cash Flows from Capital and Related Financing Activities:
I Principal Payments on Bonds (67,878) (62,741)
Transfers to Other Funds (5,331)
Interest and Fiscal Charges Paid on Bonds (32,052) (37,189)
I Proceeds from Sales of Water Meters 38,105 34,995
Acquisition of Water Meters (18,085) (34,825)
Acquisition of Fixed Assets (85,461) (53,147)
I Net Cash Used by Capital and Related Financing Activities (170,702) (152,907)
Cash Flows from Investing Activities:
I Investment Income Received 15,406 32,005
Net Increase in Cash and Cash Equivalents
504,814 522,255
I Cash and Cash Equivalents, January 1 1,554,788 1,032,533
I Cash and Cash Equivalents, December 31 $ 2,059,602 $ 1,554,788
Cash and Cash Equivalents is Classified on the Combined
I Balance Sheet - All Fund Types and Account Groups as Follows:
Cash and Investments (Including Cash Equivalents) $ 2,059,602 $ 1,574,900
Cash Overdraft (20,112)
I Total Cash and Cash Equivalents $ 2,059,602 $ 1,554,788
The notes to the financial statements are an integral part of this statement.
I 13
CITY OF ALBERTVILLE
Wright County, Minnesota
NOTES TO THE FINANCIAL STATEMENTS
Year Ended December 31, 2003
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
· Related Organization - The relationship of the 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:
14
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
CITY OF ALBERTVILLE
Wright County, Minnesota
NOTES TO THE FINANCIAL STATEMENTS
Year Ended December 31, 2003
NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
A. Financial Reporting Entity (Continued)
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 of the original agreement, each city and town was to contribute 25%
of the required amount. In 1996, Frankfort Township was annexed into the cities ofSt.
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.
15
CITY OF ALBERTVILLE
Wright County, Minnesota
NOTES TO THE FINANCIAL STATEMENTS
Year Ended December 31, 2003
NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
A. FINANCIAL REPORTING ENTITY (CONTINUED)
Joint Ventures and Jointly Governed Organizations: (Continued)
Joint Powers Board Water Fund (Continued)
A summary of the financial information of the Joint Powers Board Water Fund for the year
ended December 31, 2001 (2002 and 2003 information is not available) is:
Total Assets
$ 12A51.01O
Total Liabilities
Total Equity
$ 7,159,502
5,381,508
Total Liabilities and Equity
$ 12.541.010
Total Revenues
Operating Expenses
Other Income (Expense)
$ 1,029,035
547,867
924,160
Net Income
$ 1 A05.328
Financial statements for the Joint Powers Board Water Fund may be obtained at Albertville
City Hall.
St. Michael- Albertville Ice Arena (STMA Arena)
In 1996 and 1997, the City of Albertville entered in a joint powers agreement with the City of
St. Michael and Independent School District #885, St. 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 St. Michael and Albertville and Independent School District No. 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.
16
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
CITY OF ALBERTVILLE
Wright County, Minnesota
NOTES TO THE FINANCIAL STATEMENTS
Year Ended December 31, 2003
NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
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 2003 and 2002, 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,
2002 is:
Total Assets
$ 851,212
Total Liabilities
Total Equity
$ 690,514
160,698
Total Liabilities and Equity
$ 851,212
Total Revenues
Operating Expenses
Other Income (Expenses)
$ 161,495
194,076
266
Net Income (Loss)
$ (32,315)
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
on the following page.
17
CITY OF ALBERTVILLE
Wright County, Minnesota
NOTES TO THE FINANCIAL STATEMENTS
Year Ended December 31,2003
NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
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 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.
18
I
I
I
I
I
I
I
I
I
I
I
'I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
CITY OF ALBERTVILLE
Wright County, Minnesota
NOTES TO THE FINANCIAL STATEMENTS
Year Ended December 31, 2003
NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
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 of the fixed assets range from five to fifty years.
19
20
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
CITY OF ALBERTVILLE
Wright County, Minnesota
NOTES TO THE FINANCIAL STATEMENTS
Year Ended December 31, 2003
NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
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.
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
CITY OF ALBERTVILLE
Wright County, Minnesota
NOTES TO THE FINANCIAL STATEMENTS
Year Ended December 31, 2003
NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
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 2003.
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 of project controls.
4. The budget for the General Fund is adopted on a basis consistent with accounting principles
generally accepted in the United States of America. Annual appropriations lapse at year end.
F. Encumbrances
Encumbrances outstanding at year end expire and outstanding purchase orders are cancelled and
not reported in the financial statements.
As of December 31, 2003, 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.
21
CITY OF ALBERTVILLE
Wright County, Minnesota
NOTES TO THE FINANCIAL STATEMENTS
Year Ended December 31, 2003
NOTE 1 -,sUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
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:
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.
22
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
CITY OF ALBERTVILLE
Wright County, Minnesota
NOTES TO THE FINANCIAL STATEMENTS
Year Ended December 31, 2003
NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
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 1 12 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:
o Reserved amounts are set aside by council resolution for specific expenses in future
periods.
o The unreserved portion of retained earnings is available for expending in future periods.
· Fund balance accounts are subdivided as follows:
o Reserved accounts represent those portions of fund equity not appropriable for
expenditure or legally separated for a future use.
o Umeserved, designated accounts indicate the portion of fund balance which has been
designated for a specific purpose.
o The unreserved, undesignated account is the portion of fund balance which is available
for budgeting and expending in future periods.
23
CITY OF ALBERTVILLE
Wright County, Minnesota
NOTES TO THE FINANCIAL STATEMENTS
Year Ended December 31, 2003
NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
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.
24
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
CITY OF ALBERTVILLE
Wright County, Minnesota
NOTES TO THE FINANCIAL STATEMENTS
Year Ended December 31, 2003
NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
N. Revenues, Expenditures and Expenses (Continued)
2. Property Tax Collection Calendar (Continued)
If taxes due May 15 are not paid on time, a penalty of 3 % 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 Long-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.
25
CITY OF ALBERTVILLE
Wright County, Minnesota
NOTES TO THE FINANCIAL STATEMENTS
Year Ended December 31,2003
NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
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, 2003:
Debt Service Funds:
1996A G. O. TIF Bonds
2000 G.O. Sewer Revenue Bonds
Capital Projects Funds:
Closed Capital Projects
TIF #8 - Vetsch Custom Cabinets
TIF #10 - Mold-Tech
TIF # 11 - Land of Lakes Tile
Cottages of Albertville TIF#7
Cedar Creek North
Center Oaks 1 st Addition
Barthel Bus Garage TIF #9
Karston Cove
Albertville Crossing
Albertville Village
Towne Lakes
$ 58,228
461,236
1,963,507
416
10,842
19,488
31,472
37,216
42,112
6,431
4,273
14,400
7,486
12,128
26
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
'I
I
I
CITY OF ALBERTVILLE
Wright County, Minnesota
NOTES TO THE FINANCIAL STATEMENTS
Year Ended December 31, 2003
NOTE 2 - STEWARDSHIP, COMPLIANCE AND ACCOUNTABILITY
A. Fund Balance Deficits (Continued)
Capital Projects Funds: (Continued)
Cobom's
NW Commercial Park
Public Works Facility
CR 37 Traffic Light
CSAH 19 Ramps
Wright County Transportation
$ 51,702
106,386
68,037
118,991
17,415
7,101
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, 2003:
Expenditures Appropriations
General Fund
Special Revenue Fund
$ 1,981,263
109,610
$ 1,967,170
27
CITY OF ALBERTVILLE
Wright County, Minnesota
NOTES TO THE FINANCIAL STATEMENTS
Year Ended December 31, 2003
NOTE 3 - DETAILED NOTES ON ALL FUNDS AND ACCOUNT GROUPS
A. Assets
1. Cash and Investments (Including Cash Equivalents)
Cash balances ofthe 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:
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.
1
Category
2
3
Bank Carrying
Balance Amount
$ 787,327 $ 787,327
5,918,620 5,918,620
$ 6,705,947 $ 6,705,947
Certificates of Deposit
Bank Accounts
$ 787,327
5,918,620
$ -
$ -
Total Deposits
$ 6,705,947
$ -
$ -
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
28
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
CITY OF ALBERTVILLE
Wright County, Minnesota
NOTES TO THE FINANCIAL STATEMENTS
Year Ended December 31, 2003
NOTE 3 - DETAILED NOTES ON ALL FUNDS AND ACCOUNT GROUPS
A. Assets (Continued)
1. Cash and Investments (Including Cash Equivalents) (Continued)
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
aforementioned 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.
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.
Category
1 2
Carrying
Amount!
Fair Value
3
U.S. Government Securities $ 608,492
Municipal Bonds 501,020
Negotiable CD's 581,126
Total $ 1,690,638
$ -
$ 608,492
501,020
581,126
$ -
$ -
$ -
1,690,638
Not Subject to Risk Classification:
Broker Money Market Accounts
8,970
Cash in Trust
Restricted Cash in Trust
Total Deposits (Note 3 A.1.a.)
864,659
86,460
6,705,947
Total Cash and Investments (Including Cash Equivalents)
$ 9,356,674
29
CITY OF ALBERTVILLE
Wright County, Minnesota
NOTES TO THE FINANCIAL STATEMENTS
Year Ended December 31, 2003
NOTE 3 - DETAILED NOTES ON ALL FUNDS AND ACCOUNT GROUPS
A. Assets (Continued)
1. Cash and Investments (Including Cash Equivalents) (Continued)
Investments
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
$ 12,613,380
864,660
86,460
(4,207,826)
$ 9,356,674
Total
F or the year ended December 31, 2003, investment revenue was $ 48,293.
2. Due from Other Governmental Units
The following is a summary of due from other governmental units at December 31, 2003:
Ice Arena
Wright Joint
Fund County Powers Total
General $ 11,167 $ $ 11,167
Debt Service 276,268 276,268
Enterprise 61,429 83,000 144,429
Total $ 348,864 $ 83,000 $ 431,864
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, 2003 totaled $ 84,798.
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
30
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
CITY OF ALBERTVILLE
Wright County, Minnesota
NOTES TO THE FINANCIAL STATEMENTS
Year Ended December 31, 2003
NOTE 3 - DETAILED NOTES ON ALL FUNDS AND ACCOUNT GROUPS
A. Assets (Continued)
4. Fixed Assets
The following is a summary of changes in general fixed assets (unaudited):
Balance
1/1/03
Balance
12/31/03
Disposals
Additions
Land
Buildings
Improvements Other
than Buildings
Machinery and Equipment
$ 35,566
120,218
$
$ 333,959
120,218
$ 298,393
78,169
864,130
78,169
864,130
Total
$ 1,098,083
$ 1,396,476
$
$ 298,393
A summary of proprietary fund type fixed assets at December 31, 2003 is as follows:
Sanitary Stonn
Sewer Water Water
Fund Fund Fund Totals
Land $ 190,269 $ $ $ 190,269
Sewer System 7,418,792 7,418,792
Water System 436,894 436,894
Equipment 193,560 42,710 236,270
Construction in Progress 424,533 315,867 215,556 955,956
Total Fixed Assets 8,227,154 795,471 215,556 9,238,181
Less: Accumulated Depreciation (1,320,279) (47,794) (1,368,073)
Net Fixed Assets $ 6,906,875 $ 747,677 $ 215,556 $ 7 ,870,108
31
CITY OF ALBERTVILLE
Wright County, Minnesota
NOTES TO THE FINANCIAL STATEMENTS
Year Ended December 31, 2003
NOTE 3 - DETAILED NOTES ON ALL FUNDS AND ACCOUNT GROUPS
B. Liabilities
1. Defined Benefit Pension Plans - Statewide
Plan Description
All full-time and certain part-time employees of the City of Albertville are covered by
defined benefit plans administered by the Public Employees Retirement Association of
Minnesota (PERA). PERA administers the Public Employees Retirement Fund (PERF)
which is a cost-sharing, multiple-employer retirement plan. This plan is established and
administered in accordance with Minnesota Statutes Chapters 353 and 356.
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.
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 Plan members hired prior to July 1, 1989. Normal retirement age is the age for
unreduced social security benefits capped at 66 for Coordinated Plan members hired on or
after July 1, 1989. A reduced retirement annuity is also available to eligible members
seeking early retirement.
32
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
CITY OF ALBERTVILLE
Wright County, Minnesota
NOTES TO THE FINANCIAL STATEMENTS
Year Ended December 31, 2003
NOTE 3 - DETAILED NOTES ON ALL FUNDS AND ACCOUNT GROUPS
B. Liabilities (Continued)
1. Defined Benefit Pension Plans - Statewide (Continued)
a. Plan Description (Continued)
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
www.mnpera.org.bywritingtoPERAat60EmpireDriveSuite200.S1. Paul, Minnesota,
55103-2088 or by calling (651) 296-7460 or (800) 652-9026.
Funding Policy
Minnesota Statutes Chapter 353 sets the rates for employer and employee contributions.
These statutes are established and amended by the state legislature. The City makes annual
contributions to the pension plan equal to the amount required by state statutes. PERF Basic
Plan members and Coordinated Plan members are required to contribute 9.10% and 5.10%,
respectively, of their 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, 2003, 2002 and 2001 were
$ 20,923, $ 27,328 and $ 25,056, 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.
33
CITY OF ALBERTVILLE
Wright County, Minnesota
NOTES TO THE FINANCIAL STATEMENTS
Year Ended December 31, 2003
NOTE 3 - DETAILED NOTES ON ALL FUNDS AND ACCOUNT GROUPS
B. Liabilities (Continued)
2. Deferred Revenue
Special Debt Capital
General Revenue Service Projects Total
Taxes Receivable:
Delinquent $ 33,462 $ $ 4,365 $ $ 37,827
Special Assessments
Receivable:
Deferred 31,000 811,614 266,248 1,108,862
Delinquent 3,908 93,796 97,704
Loans Receivable 84,798 84,798
Total $ 33,462 $ 115,798 $ 819,887 $ 360,044 $ 1,329,191
3. Long-Term Debt
The following is a summary of long-term debt transactions for the year ended December 31,
2003:
General
Obligation
General Special Tax Capital
Obligation Revenue Assessment Increment Lease Total
Balance -
January 1 $ 40,000 $ 4,067,246 $ 1,165,000 $ 165,000 $ 50,562 $ 5,487,808
Additions 3,235,000 3,235,000
Retirements (20,000) (432,878) (427,200) (30,000) (24,533) (934,611)
Balance -
December 31 $ 20,000 $ 3,634,368 $ 3,972,800 $ 135,000 $ 26,029 $ 7,788,197
34
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I,
I
I
I
I
I
I
I
I
CITY OF ALBERTVILLE
Wright County, Minnesota
NOTES TO THE FINANCIAL STATEMENTS
Year Ended December 31, 2003
NOTE 3 - DETAILED NOTES ON ALL FUNDS AND ACCOUNT GROUPS
B. Liabilities (Continued)
3. Long-Term Debt (Continued)
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%
Revenue Bonds:
$ 1,454,514 General Obligation Revenue Notes - PFA, due to
Minnesota Public Facilities Authority in semi-annual installments
of$ 19,707 to $ 49,965 through August 20,2014; interest at 3.32%
$ 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%
$ 2,550,000 General Obligation Sewer Revenue Bonds,
Series 2000A, due in annual installments of $ 50,000 $ 365,000
through February 1,2016; interest at 4.50 to 5.25%
Total Revenue Bonds
General Obligation Special Assessment Bonds:
$ 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%
Outstanding
December 31,
2003
$ 20,000
$ 914,368
790,000
1,930,000
$ 3,634,368
$ 47,800
35
CITY OF ALBERTVILLE
Wright County, Minnesota
NOTES TO THE FINANCIAL STATEMENTS
Year Ended December 31, 2003
NOTE 3 - DETAILED NOTES ON ALL FUNDS AND ACCOUNT GROUPS
B. Liabilities (Continued)
3. Long-Term Debt (Continued)
General Obligation Special Assessment Bonds: (Continued)
$ 675,000 General Obligation Improvement Refunding Bonds,
Series I 993A, due in annual installments of $ 20,000 to $ 95,000
through February 1,2006; interest at 3.40 to 5.75%
$ 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%
$ 3,235,000 General Obligation Improvement Bonds, Series 2003A,
due in annual installments of $ 80,000 to $ 410,000 through
February, 2019; interest at 2.0% to 4.15%.
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%
Outstanding
December 31,
2003
$ 60,000
630,000
3,235,000
$ 3,972,800
$ 135,000
36
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
,I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
CITY OF ALBERTVILLE
Wright County, Minnesota
NOTES TO THE FINANCIAL STATEMENTS
Year Ended December 31, 2003
NOTE 3 - DETAILED NOTES ON ALL FUNDS AND ACCOUNT GROUPS
B. Liabilities (Continued)
3. Long-Term Debt (Continued)
The annual requirements to amortize all bonded debt outstanding as of December 31, 2003,
including interest payments of $ 1,932,478 are:
General
Obligation
Year Ending General Special Tax
Decem ber 3 I, Obligation Revenue Assessment Increment Total
2004 $ 20,500 $ 626,812 $ 274,226 $ 36,420 $ 957,958
2005 417,603 641,438 29,995 1,089,036
2006 427,441 613,578 28,645 1,069,664
2007 436,312 585,915 27,295 1,049,522
2008 444,158 586,248 30,810 1,061,216
2009-2013 1,353,256 1,271,589 2,624,845
2014-2018 960,315 692,744 1,653,059
2019- 2023 71,960 117,386 189,346
Total $ 20,500 $ 4,737,857 $ 4,783,124 $ 153,165 $ 9,694,646
4. Capital Lease
The City entered into a capital lease agreement for the purpose of financing a tractor/loader.
The lease requires five annual payments of $ 27,617 beginning November 28, 2000.
Minimum future lease payments under the capital lease with the present value of minimum
lease payments as of December 31, 2003 follow:
Year Ended December 31,
2004
Net Minimum Lease Payments
Less: Amount Representing Interest
$ 27,617
(1,588)
$ 26,029
Present Value of Minimum Lease Payments
37
CITY OF ALBERTVILLE
Wright County, Minnesota
NOTES TO THE FINANCIAL STATEMENTS
Year Ended December 31, 2003
NOTE 3 - DETAILED NOTES ON ALL FUNDS AND ACCOUNT GROUPS
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 $ $ $ $ $
Unreserved:
Designated for
Operating Capital 1,000,000 1,000,000
Designated for
Debt Service 349,923 349,923
Designated for
Capital Outlay 358,717 (1,954,719) (1,596,002)
Undesignated 1,540,495 5,954,764 21,036 1,106,847 8,623,142
Total Fund Balance $ 2,540,495 $ 6,313,481 $ 370,959 $ (847,872) $ 8,377,063
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, 2003
Add: Assets Contributed During 2003
$ 6,774,849
83,829
Contributed Capital - December 31, 2003
$ 6,858,678
38
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
CITY OF ALBERTVILLE
Wright County, Minnesota
NOTES TO THE FINANCIAL STATEMENTS
Year Ended December 31, 2003
NOTE 4 - CONSTRUCTION COMMITMENTS
The City has entered into contracts for the following improvement projects.
Fund/Project
Expended
Project Through
Authorization 12/31/03 Commitment
$ 261,498 $ 256,069 $ 5,429
45,117 44,351 766
33,372 24,166 9,206
37,655 37,655
Savitski Lift Station Upgrade
Primary School Ballfields
Albert Villas Park Project
Community Directional Sign
NOTE 5 - SEGMENT INFORMATION
The City maintains Water, Sanitary Sewer and Storm Water Enterprise Funds. Segment
information for the year ended December 31, 2003 is as follows:
Sanitary Water Storm
Sewer Fund Water Total
Operating Revenues $ 427,725 $ 387,209 $ 109,019 $ 923,953
Depreciation 164,308 15,064 179,372
Operating Income 105,697 280,486 42,194 428,377
Net Income 74,524 311,389 45,838 431,751
Net Working Capital 175,985 1,473,667 515,776 2,165,428
Total Assets 7,187,957 2,412,317 731,332 10,331,606
Debt Outstanding 914,368 914,368
Total Equity 6,268,423 2,221,344 731,332 9,221,099
39
CITY OF ALBERTVILLE
Wright County, Minnesota
NOTES TO THE FINANCIAL STATEMENTS
Year Ended December 31, 2003
NOTE 6 - TAX INCREMENT FINANCING
The City of Albertville is the administering authority for the following tax increment financing
districts:
Original Tax Capacity
Current Tax Capacity
Captured Tax Capacity:
Retained by City
Original Tax Capacity
Current Tax Capacity
Captured Tax Capacity:
Retained by City
Name of District:
Type of District:
Authorizing Law:
Year Established:
County District No.:
Duration of District:
Type of Notes Issued:
Name of District:
Type of District:
Authorizing Law:
Year Established:
County District No.:
Duration of District:
Type of Notes Issued:
Tax Increment Financing District # 7
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
$
329
35,676
$
35.347
"Pay as You Go" - The City pays the developer for tax
increments received in the current year.
Tax Increment Financing District # 8
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 TIP plan
$
195
5,322
$
5.127
"Pay as You Go" - The City pays the developer for tax
increments received in the current year.
40
I
I
I
I
I
II
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
CITY OF ALBERTVILLE
Wright County, Minnesota
NOTES TO THE FINANCIAL STATEMENTS
Year Ended December 31, 2003
NOTE 6 - TAX INCREMENT FINANCING
Original Tax Capacity
Current Tax Capacity
Captured Tax Capacity:
Retained by City
Original Tax Capacity
Current Tax Capacity
Captured Tax Capacity:
Retained by City
Name of District:
Type of District:
Authorizing Law:
Year Established:
Duration of District:
Type of Notes Issued:
Name of District:
Type of District:
Authorizing Law:
Year Established:
Duration of District:
Type of Notes Issued:
Tax Increment Financing District # 9
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
$
2,458
9,236
$
6,778
"Pay as You Go" - The City pays the developer for tax
increments received in the current year.
Tax Increment Financing District #10
Economic Development
Minnesota T .l.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 TIF plan
$
710
9,556
$
8,846
"Pay as You Go" - The City pays the developer for tax
increments received in the current year.
41
CITY OF ALBERTVILLE
Wright County, Minnesota
NOTES TO THE FINANCIAL STATEMENTS
Year Ended December 31, 2003
NOTE 6 - TAX INCREMENT FINANCING
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 TIF plan
Original Tax Capacity
Current Tax Capacity
Captured Tax Capacity:
Retained by City
$
1,712
26,942
$
25,230
Type of Notes Issued:
"Pay as You Go" - The City pays the developer for tax
increments received in the current year.
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 deductibles are considered
immaterial to the financial statements.
During the year ended December 31, 2003, 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.
42
I
,I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I:
I
I
I
I
CITY OF ALBERTVILLE
Wright County, Minnesota
NOTES TO THE FINANCIAL STATEMENTS
Year Ended December 31, 2003
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, 2003, the following issues were outstanding:
Name
Date ofIssue
Original
Amount
Cottages of Albertville:
Multi Family Housing
Revenue Bonds, Series 1999 A
Taxable Multi Family Housing
Revenue Bonds, Series 1999B
Subordinated Multi-Family
Housing Revenue Bonds,
Series 1999C
12/23/99
$ 3,230,000
85,000
425,000
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 ofthe
District's overall financial position and results of operations.
o Financial statements prepared using full accrual accounting for all of the City's activities.
o 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.
43
44
I
I
I
I
I
I
I
I
I
I
I
I
I
'I
II
I
I
I
I
COMBINING, INDIVIDUAL FUND AND
ACCOUNT GROUP FINANCIAL STATEMENTS
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
CITY OF ALBERTVILLE
Wright County, Minnesota
GENERAL FUND
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.
45
CITY OF ALBERTVILLE
Wright County, Minnesota
GENERAL FUND
COMPARATIVE BALANCE SHEET
December 31,2003 and 2002
Totals
2003 2002
ASSETS:
Cash and Investments $ 1,727,653 $ 1,726,697
Cash in Trust 862,173
Taxes Receivable:
Delinquent 33,462 35,267
Interest Receivable 22,155 24,009
Accounts Receivable 8,334
Due from Other Governmental Units 11,167 17,299
Total Assets $ 2,664,944 $ 1 ,803,272
LIABILITIES AND FUND BALANCE:
Liabilities:
Accounts Payable
Contracts and Retainages Payable
Accrued Payroll Taxes and Benefits
Deferred Revenue
Total Liabilities
$ 89,995 $ 55,251
37,707
992 3,702
33,462 35,267
124,449 131,927
Fund Balance:
Unreserved:
Designated for Operating Capital
Undesignated (Deficit)
Total Fund Balance
900,000
771,345
1,671,345
1,000,000
1,540,495
2,540,495
Total Liabilities and Fund Balance
$ 2,664,944
$ 1,803,272
46
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I Revenues:
Taxes:
I General Property Tax
I
I
I
I
I
I
I
I
I
I
I
I
CITY OF ALBERTVILLE
Wright County, Minnesota
GENERAL FUND
STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE-
BUDGET AND ACTUAL
Year Ended December 31,2003
(With Comparative Totals for the Year Ended December 31, 2002)
Licenses and Permits:
Liquor and Beer Licenses
Building Permits
Business Permits
Sign Permits
Other Licenses
Total Licenses and Permits
Intergovernmental:
Local Government Aid
Market Value Credit
Fire Aid
Police Aid
Other State and County Aids
Total Intergovernmental
Charges for Services:
Fire Protection Fees
Special Assessment Searches
Park Rental Fees
Other Charges for Services
Total Charges for Services
Fines, Forfeitures and Penalties
Budget
Over
(Under)
Budget
Actual
2002
Actual
$ 1,347,817
$ 1,251,311
$
(96,506)
$ 1,177,380
12,200 14,714 2,514 12,296
400,000 647,397 247,397 552,847
15,000 25,768 10,768 18,127
3,500 3,300 (200) 3,075
500 660 160 675
431,200 691,839 260,639 587,020
61,953 (61,953) 55,718
12,786 12,786 113,654
20,000 32,315 12,315 14,332
12,500 (12,500) 12,265
16,151 53,128 36,977 5,222
110,604 98,229 (12,375) 201,191
40,000 20,032 (19,968) 36,438
1 ,000 1,780 780 1,450
2,000 (2,000) 3,075
8,500 34,131 25,631 26,382
51,500 55,943 4,443 67,345
100 (100)
47
CITY OF ALBERTVILLE
Wright County, Minnesota
GENERAL FUND
STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE -
BUDGET AND ACTUAL
Year Ended December 31, 2003
(With Comparative Totals for the Year Ended December 31, 2002)
(Continued)
Over
(Under) 2002
Budget Actual Budget Actual
Revenues: (Continued)
Miscellaneous:
Investment Income $ 25,000 $ 17,276 $ (7,724) $ 40,819
Lease Payments 950 1,705 755 1,140
Contributions and Donations 27,057 27,057 17,384
Other Revenues 22,396
Total Miscellaneous 25,950 46,038 20,088 81,739
Total Revenues 1,967,171 2,143,360 176,189 2,114,675
Expenditures:
General Government:
Mayor and Council:
Personal Services 15,612 14,024 (1,588) 12,278
Supplies 800 1,805 1,005 716
Other Services and Charges 25,700 23,795 ( 1 ,905) 20,095
Total Mayor
and Council 42,112 39,624 (2,488) 33,089
City Clerk-Treasurer and
City Administrator:
Personal Services 215,540 179,120 (36,420) 146,960
Supplies 5,750 9,280 3,530 8,247
Other Services and Charges 25,150 42,799 17,649 22,477
Capital Outlay 7,500 5,632 ( 1 ,868) 10,889
Total City Clerk-
Treasurer and
City Administrator 253,940 236,831 (17,109) 188,573
Elections:
Other Services and Charges 1,039 1,039 4,055
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
48
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
CITY OF ALBERTVILLE
Wright County, Minnesota
GENERAL FUND
STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE -
BUDGET AND ACTUAL
Year Ended December 31,2003
(With Comparative Totals for the Year Ended December 31,2002)
(Continued)
Budget
Actual
Over
(Under)
Budget
Expenditures: (Continued)
General Government: (Continued)
Assessing:
Other Services and Charges $
$
$
375
18,000
18,375
Legal:
Other Services and Charges
24,000
29,226
5,226
Engineer:
Other Services and Charges
122,015
62,015
60,000
Planning and Zoning:
Personal Services
Supplies
Other Services and Charges
Total Planning
and Zoning
3,967
170
38,136
2,675
(580)
12,886
1,292
750
25,250
42,273
14,981
27,292
General Government Buildings:
Supplies
Other Services and Charges
Capital Outlay
Total General
Government
Buildings
1,046
77,965
11
46
51,715
(87,989)
1 ,000
26,250
88,000
79,022
(36,228)
115,250
Total General
Government
568,405
27,811
540,594
2002
Actual
$
16,096
27,614
159,986
1,100
75
37,689
38,864
880
67,782
34,887
103,549
571,826
49
I
CITY OF ALBERTVILLE I
Wright County, Minnesota
GENERAL FUND I
STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE -
BUDGET AND ACTUAL
Year Ended December 31,2003 I
(With Comparative Totals for the Year Ended December 31,2002)
(Continued)
I
Over
(Under) 2002 I
Budget Actual Budget Actual
Expenditures: I
Public Safety:
Police Protection:
Other Services and Charges $ 254,040 $ 254,040 $ $ 243,820 I
Fire Protection:
Personal Services 76,215 98,542 22,327 35,156 I
Supplies 5,050 8,369 3,319 11,714
Other Services and Charges 25,600 25,783 183 33,844
Capital Outlay 112,100 13,728 (98,372) 494,733 I
Total Fire Protection 218,965 146,422 (72,543) 575,447
Building Inspection: I
Personal Services 133,244 138,135 4,891
Supplies 4,000 4,527 527 939 I
Other Services and Charges 10,450 18,767 8,317
Total Building
Inspection 147,694 161,429 13,735 939 I
Animal Control:
Other Services and Charges 3,000 2,780 (220) 2,669 I
Total Public Safety 623,699 564,671 (59,028) 822,875
Public Works: I
Streets and Highways:
Personal Services 65,990 87,909 41,919 77,545 I
Supplies 35,250 33,961 (1,289) 32,368
Other Services and Charges 41,625 66,060 24,435 50,646 I
Capital Outlay 383,000 367,735 (15,265) 69,148
Total Streets
and Highways 525,865 555,665 29,800 229,707 I
50 I
I
CITY OF ALBERTVILLE
I Wright County, Minnesota
I GENERAL FUND
STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE-
BUDGET AND ACTUAL
I Year Ended December 31,2003
(With Comparative Totals for the Year Ended December 31,2002)
(Continued)
I
Over
I (D nder) 2002
Budget Actual Budget Actual
Expenditures: (Continued)
I Public Works:
Street Lighting:
I Other Services and Charges $ 40,000 $ 51,963 $ 11,963 $ 42,253
Total Public Works 565,865 607,628 41,763 271,960
I Sanitation:
Recycling:
Other Services and Charges 35,000 38,668 3,668 42,393
I Culture and Recreation:
Parks:
I Personal Services 73,344 46,760 (26,584) 37,626
Supplies 4,500 3,985 ( 515) 3,114
Other Services and Charges 20,518 16,151 (4,367) 19,506
I Capital Outlay 80,950 98,723 17,773 142,831
Total Culture
and Recreation 179,312 165,619 (13,693) 203,077
I
Economic Development:
I Supplies 2,500 (2,500)
Other Services and Charges 20,200 8,655 (11,545) 3,802
Total Economic
I Development 22,700 8,655 (14,045) 3,802
Debt Service:
I Principal 26,029 26,029 23,122
Interest 1,588 1,588 4,495
Total Debt Service 27,617 27,617 27,617
I Total Expenditures 1,967,170 1,981,263 14,093 1,943,550
I Excess of Revenues Over Expenditures 1 162,097 162,096 171,125
51
I
CITY OF ALBERTVILLE
Wright County, Minnesota
GENERAL FUND
STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE -
BUDGET AND ACTUAL
Year Ended December 31,2003
(With Comparative Totals for the Year Ended December 31,2002)
(Continued)
Over
(Under) 2002
Budget Actual Budget Actual
Other Financing Sources (Uses):
Sale of General Fixed Assets $ $ 739,848 $ 739,848 $ 497,386
Operating Transfers Out (15,000)
Total Other Financing
Sources (Uses) 739,848 739,848 482,386
Excess of Revenues and Other
Financing Sources Over Expenditures
and Other Financing Uses $ 1 901,945 $ 901,944 653,511
Fund Balance - January 1 1,671 ,345 1,017,834
Residual Equity Transfers (32,795)
Fund Balance - December 31 $ 2,540,495 $ 1,671,345
52
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I Special Revenue Funds are used to account for revenues derived from specific taxes or other earmarked
revenue sources. They are usually required by statute, charter provision, or local ordinance to finance
I particular functions or activities of government.
I
I
I
I
I
I
I
I
I
I
I
I
I
I
CITY OF ALBERTVILLE
Wright County, Minnesota
SPECIAL REVENUE FUNDS
53
I
CITY OF ALBERTVILLE I
Wright County, Minnesota
SPECIAL REVENUE FUNDS I
COMBINING BALANCE SHEET
December 31, 2003
(With Comparative Totals for December 31, 2002) I
102 II 201 I I 203 I
Capital Revolving
Outlay Park Loan
Reserves Fund Fund I
ASSETS:
Cash and Investments $ 251,650 $ 1,127,077 $ 82,238 I
Notes Receivable 84,798
Special Assessments Receivable:
Deferred I
Accounts Receivable
Total Assets $ 251 ,650 $ 1,127,077 $ 167,036 I
LIABILITIES AND FUND BALANCE: I
Liabilities:
Cash Overdraft $ $ $
Accounts Payable 2,911 I
Contracts Payable 68,517
Deferred Revenue 84,798 I
Total Liabilities 71,428 84,798
Fund Balance: I
Unreserved:
Designated for Capital Outlay 251,650
Undesignated 1,055,649 82,238 I
Total Fund Balance (Deficit) 251,650 1,055,649 82,238
Total Liabilities and Fund Balance $ 251 ,650 $ 1,127,077 $ 167,036 I
I
I
I
54 I
I
I
I
I
I 204
Totals
I SAC 2003 2002
$ 4,928,965 $ 6,389,930 $ 5,193,961
I 84,798 98,435
I 31,000 31,000
8,400 8,400
I $ 4,968,365 $ 6,514,128 $ 5,292,396
I
$ $ $ 3,002
I 2,911
13,421 81,938
31,000 115,798 98,435
I 44,421 200,647 101,437
I 251,650 249,737
I 4,923,944 6,061,831 4,941,222
4,923,944 6,313,481 5,190,959
I $ 4,968,365 $ 6,514,128 $ 5,292,396
I
I
I
55
I
I
CITY OF ALBERTVILLE I
Wri~ht County, Minnesota
SPECIAL REVENUE FUNDS I
COMBINING STATEMENT OF REVENUES, EXPENDITURES
AND CHANGES IN FUND BALANCE
Year Ended December 31, 2003 I
(With Comparative Totals for the Year Ended December 31, 2002)
102 I I 201 I I 203 I
Capital Revolving
Outlay Park Loan
Reserves Fund Fund I
Revenues:
Charges for Services:
Park Dedication Fees $ $ 306,250 $ I
Sewer Availability Charges
Trunk Access Charges
Miscellaneous: I
Investment Income 1,913 7,411 1,189
Donations 10,350
Loan Repayments and Other 17,312 I
Total Revenues 1,913 324,011 18,501
Expenditures: I
Culture and Recreation:
Capital Outlay 86,525
Total Expenditures 86,525 I
Excess of Revenues Over
(Under) Expenditures 1,913 237,486 18,501 I
Other Financing Sources (Uses): I
Operating Transfers In
Operating Transfers Out
Total Other Financing Sources (Uses) I
Excess of Revenues and Other
Financing Sources Over (Under) I
Expenditures and Other Financing Uses 1,913 237,486 18,501
Fund Balance (Deficit) - January 1 249,737 818,163 63,737 I
Residual Equity Transfers
Fund Balance (Deficit) - December 31 $ 251,650 $ 1,055,649 $ 82,238 I
I
56 I
I
I
I
I
204 I r 205
I
Totals
SAC CMIF 2003 2002
I
I $ $ $ 306,250 $ 330,491
1,054,731 1,054,731 1,183,772
147,164 147,164 131,250
I 40,001 50,514 103,499
10,350 2,000
I 1 7,312 12,888
1,241,896 1,586,321 1,763,900
I 23,085 109,610
15,897
I 23,085 109,610 15,897
I 1,218,811 1,476,711 1,748,003
I 15,000
(480,323)
(465,323)
I
I 1,218,811 1,476,711 1,282,680
4,062,324 (3,002) 5,190,959 3,908,279
I (357,191) 3,002 (354,189)
I $ 4,923,944 $ $ 6,313,481 $ 5,190,959
I
I 57
(THIS PAGE LEFT BLANK INTENTIONALLY.)
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
58
I
I
I
I Debt Service Funds are created to account for the payment of interest and principal on long-term, general
obligation debt other than debt issued for and serviced primarily by a governmental enterprise.
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
CITY OF ALBERTVILLE
Wright County, Minnesota
DEBT SERVICE FUNDS
59
I
I
I
I
I 341 I I 353 I , 354 II 355 I , 356
I 1999 1999 A 2000
City 1996A Lease G.O. G.O. Sewer
Hall G.O. TIF Revenue Improvement Revenue
I Bonds Bonds Bonds Bonds Bonds
I $ 18,745 $ $ 56,712 $ 38,655 $
2,487
86,460
I 655 180 2,043 1,143
I 67,501 224,014
276,104
I $ 19 ,400 $ 67 ,681 $ 147,702 $ 539,916 $
I
! I $ $ 58,228 $ $ $ 461,236
655 67,681 2,043 225,157
I 655 125,909 2,043 225,157 461,236
I 18,745 145,659 314,759
I (58,228) (461,236)
18,745 (58,228) 145,659 314,759 (461,236)
I $ 19 ,400 $ 67,681 $ 147,702 $ 539,916 $
I
61
I
I
CITY OF ALBERTVILLE I
Wright County, Minnesota
DEBT SERVICE FUNDS I
COMBINING BALANCE SHEET
December 31,2003
(With Comparative Totals for December 31, 2002) I
(Continued)
357 I
2003A I
G.O.
Improvement Totals I
Bond 2003 2002
ASSETS:
Cash and Investments $ 178,503 $ 525,469 $ 799,638 I
Cash in Trust 2,487 2,475
Restricted Cash in Trust 86,460 86,069
Taxes Receivable: I
Delinquent 4,365 5,479
Special Assessments Receivable:
Deferred 478,997 811,614 603,327 I
Delinquent 3,908 214,641
Due from Other Governmental Units 276,268 4,882
Total Assets $ 657 ,500 $ 1,710,571 $ 1,716,511 I
LIABILITIES AND FUND BALANCE: I
Liabilities: I
Cash Overdraft $ 519,464 $ 211,323
Deferred Revenue 478,997 819,887 823,447
Contracts Payable 261 261 I
Total Liabilities 479,258 1,339,612 1,034,770
Fund Balance: I
Reserved for Debt Service 178,242 818,919 711,000
Unreserved:
Designated for Debt Service 71,504 182,064 I
Undesignated (519,464) (211,323)
Total Fund Balance (Deficit) 178,242 370,959 681,741 I
Total Liabilities and Fund Balance $ 657,500 $ 1,710,571 $ 1,716,511
I
62 I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
(THIS PAGE LEFT BLANK INTENTIONALLY.)
63
I
CITY OF ALBERTVILLE I
Wri~ht County, Minnesota
DEBT SERVICE FUNDS I
COMBINING STATEMENT OF REVENUES, EXPENDITURES
AND CHANGES IN FUND BALANCE
Year Ended December 31, 2003 I
(With Comparative Totals for the Year Ended December 31,2002)
300 II 317 I ~ 318 I ~ 322 I
1992 I
Closed 1988 1989 Sewer
Bond Refunding Refunding Trunk
Issues Bonds Bonds Bonds I
Revenues:
General Property Taxes $ 2,333 $ 2 $ 364 $ 3,083
Special Assessments 3,783 11,768 I
Miscellaneous:
Investment Income 856 694
Total Revenues 6,972 2 364 15,545 I
Expenditures:
Debt Service: I
Bond Principal 10,000 17,200
Bond Interest and Fiscal Charges 1,262 2,539
Total Expenditures 11,262 19,739 I
Excess of Revenues Over
(Under) Expenditures 6,972 2 (10,898) (4,194) I
Other Financing Sources (Uses):
Bond Proceeds I
Operating Transfers In
Operating Transfers Out
Total Other Financing I
Sources (Uses)
Excess of Revenues and Other I
Financing Sources Over
(Under) Expenditures 6,972 2 (10,898) (4,194)
Fund Balance (Deficit) - January 1 182,064 (152,118) 28,839 47,743 I
Residual Equity Transfers (117,532) 152,116 (17,941) I
Fund Balance (Deficit) - December 31 $ 71,504 $ $ $ 43,549
I
64 I
I
I
I
I
I 323 II 324 II 341 II 353 II 354 II 355
G.O. G.O.
I 1992 1993 1999 1999A
Refunding Improvement City 1996A Lease G.O
Improvement & Refunding Hall G.O. TIF Revenue Improvement
I Bonds Bonds Bonds Bonds Bonds Bonds
$ 2,640 $ $ 23,451 $ 5,450 $ 74,416 $ 38,850
I 359 15,548 22,828 386,892
1,461 25 (987) 1,738 749
I 2,999 17,009 23,476 27,291 76,154 426,491
I 20,000 20,000 30,000 30,000 380,000
4,341 1,500 8,236 45,288 38,931
I 24,341 21,500 38,236 75,288 418,931
I 2,999 (7,332) 1,976 (10,945) 866 7,560
I (26,716)
I (26,716)
I 2,999 (7,332) 1,976 (10,945) 866 (19,156)
I 13 ,644 125,297 16,769 (47,283) 144,793 333,915
(16,643)
I $ $ 117 ,965 $ 18,745 $ (58,228) $ 145,659 $ 314,759
I
I 65
I
CITY OF ALBERTVILLE I
Wright County, Minnesota
DEBT SERVICE FUNDS 'I
COMBINING STATEMENT OF REVENUES, EXPENDITURES
AND CHANGES IN FUND BALANCE
Year Ended December 31, 2003 I
(With Comparative Totals for the Year Ended December 31, 2002)
(Continued)
356 II 357 I
2000 2003A 'I
G.O. Sewer G.O.
Revenue Improvement Totals
Bonds Bonds 2003 2002 I
Revenues:
General Property Taxes $ $ $ 150,589 $ 192,677
Special Assessments 441,178 307,976 I
Miscellaneous:
Investment Income (6,940) 1,115 (1,289) (1,270)
Total Revenues ( 6,940) 1,115 590,478 499,383 I
Expenditures:
Debt Service: I
Bond Principal 335,000 842,200 815,000
Bond Interest and Fiscal Charges 107,374 4,600 214,071 243,750
Total Expenditures 442,374 4,600 1,056,271 1,058,750 I
Excess of Revenues Over
(Under) Expenditures (449,314) (3,485) (465,793) (559,367) I
Other Financing Sources:
Bond Proceeds 59,339 59,339 I
Operating Transfers In 125,000 125,000 480,323
Operating Transfers Out (26,716)
Total Other Financing I
Sources (Uses) 184,339 157,623 480,323
Excess of Revenues and Other I
Financing Sources Over
(Under) Expenditures (449,314) 180,854 (308,170) (79,044)
Fund Balance (Deficit) - January 1 (11,922) 681,741 760,785 I
Residual Equity Transfers (Out) (2,612) (2,612) I
Fund Balance (Deficit) - December 31 $ (46 1,236) $ 178,242 $ 370,959 $ 681,741
I
66 I
I
I
I
I Capital Projects Funds are created to account for all resources used for the acquisition of capital facilities by a
governmental unit except those financed by enterprise funds.
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
CITY OF ALBERTVILLE
Wright County, Minnesota
CAPITAL PROJECTS FUNDS
67
I
I
I
I
I 409 I I 410 II 411 I I 433 II 438 II 439
TIF #9 Cottages
I Barthel TIF # 11 of Center
Bus TIF #10 Land of Albertville Cedar Creek Oaks 1st
Garage Mold-Tech Lakes Tile TIF #7 North Addition
I $ 8,788 $ $ $ $ $
121,980 85,709
I
I $ 8,788 $ $ $ $ 121,980 $ 85,709
I
I $ $ 10,842 $ 19,488 $ 31,472 $ 159,196 $ 127,821
I
10,842 19,488 31 ,472 159,196 127,821
I
I 8,788
(10,842) (19,488) (31,472) (37,216) (42,112)
I 8,788 (10,842) (19,488) (31,472) (37,216) (42,112)
$
$ 8,788 $ $ $ 121,980 $ 85,709
I
I
I
I 69
CITY OF ALBERTVILLE
Wright County, Minnesota
CAPITAL PROJECTS FUNDS
COMBINING BALANCE SHEET
December 31,2003
(With Comparative Totals for December 31,2002)
(Continued)
ASSETS:
Cash and Investments
Accounts Receivable
Special Assessments Receivable:
Delinquent
Deferred
442 I J 443 I I 445
Barthel Bus
Garage Karston Albertville
TIF #9 Cove Crossings
$ $ $
22,021
Total Assets
$
$
$
22,021
LIABILITIES AND
FUND BALANCE:
Liabilities:
Cash Overdraft
Accounts Payable
Contracts and Retainages Payable
Deferred Revenue
Total Liabilities
$
$
$
6,431
26,294
14,400
6,431
26,294
14,400
Fund Balance:
Unreserved:
Designated for Capital Outlay
Undesignated
Total Fund Balance (Deficit)
(6,431)
(6,431)
(4,273)
(4,273)
(14,400)
(14,400)
Total Liabilities and Fund Balance
$
$
$
22,021
70
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I 450 I I 453 II 456 I I 462 I I 463
I NW
Albertville Kolleville Towne Commercial
Villas Estates Lakes Coborn's Park
I $ $ $ $ $
378,936 81,617 194,760
I
93,796
I 138,222
$ 378,936 $ 81,617 $ 194,760 $ 232,018 $
I
I $ 386,202 $ 72,645 $ 202,310 $ 51,039 $ 38,344
220 4,578 663
I 68,042
232,018
386,422 72,645 206,888 283,720 106,386
I
I 8,972
(7,486) (12,128) (51,702) (106,386)
I (7,486) 8,972 (12,128) (51,702) (106,386)
$ 378,936 $ 81 ,617 $ 194,760 $ 232,018 $
I
I
I
I 71
I
I
I
I
I 468 I I 469
I CSAH Wright
19 County Totals
Ramps Transportation 2003 2002
I
$ $ $ 1,662,559 $ 662,230
I 1,251,462 858,270
93,796
I 266,248 405,019
$ $ $ 3,274,065 $
1,925,519
I
I $ 17,415 $ 7,101 $ 3,688,362 $ 4,779,378
5,489 62,405
I 68,042 202,120
360,044 405,019
17,415 7,101 4,121,937 5,448,922
II
I 1,671,531 661,573
(17,415) (7,101) (2,519,403) (4,184,976)
I (17,415) (7,101) (847,872) (3,523,403)
$ $ $ 3,274,065 $ 1 ,925,519
I
I
I
I 73
CITY OF ALBERTVILLE
Wright County, Minnesota
CAPITAL PROJECTS FUNDS
COMBINING STATEMENT OF REVENUES, EXPENDITURES
AND CHANGES IN FUND BALANCE
Year Ended December 31,2003
(With Comparative Totals for the Year Ended December 31,2002)
400
II
406
Closed
Capital
Projects
TIF #6
Fraser
Steel
Revenues:
Property Taxes
Special Assessments
Charges for Services
Miscellaneous Revenues:
Investment Income
Other Revenues
Total Revenues
$
$
24,173
2,054
26,227
Expenditures:
Other
Capital Outlay:
Engineer Fees
Legal Fees
Other Professional Services
Total Expenditures
Excess of Revenues Over
(Under) Expenditures
26,227
Other Financing Sources (Uses):
Bond Proceeds
Operating Transfer In
Operating Transfer Out
Total Other Financing Sources
26,716
26,716
Excess of Revenues and Other Financing
Sources Over (Under) Expenditures
52,943
Fund Balance (Deficit) - January 1
164,167
Residual Equity Transfers (Out)
(2,180,617)
$ (1,963,507) $
Fund Balance (Deficit) - December 31
(991)
991
I I
407
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
TIF #7
Senior
Housing
$
40,656
254
40,910
20,303
20,303
20,607
20,607
15,087
$
35,694
74
I
CITY OF ALBERTVILLE I
Wright County, Minnesota
CAPITAL PROJECTS FUNDS I
COMBINING STATEMENT OF REVENUES, EXPENDITURES
AND CHANGES IN FUND BALANCE
Year Ended December 31, 2003 I
(With Comparative Totals for the Year Ended December 31,2002)
(Continued)
450 II 451 II 452 I
Albertville Mooney Traffic I
Villas Addition Light
Revenues: I
Property Taxes $ $ $
Special Assessments
Charges for Services 378,936 236,122 I
Miscellaneous Revenues:
Investment Income (4,042) (136) (4,124)
Other Revenues I
Total Revenues 374,894 (136) 231,998
Expenditures: I
Other
Capital Outlay:
Engineer Fees 90,833 14,641 I
Legal Fees 5,280 5,418
Other Professional Services 232 2,409
Total Expenditures 96,345 22,468 I
Excess of Revenues Over
(Under) Expenditures 278,549 (136) 209,530 I
Other Financing Sources:
Bond Proceeds
Operating Transfer In I
Operating Transfer Out
Total Other Financing Sources I
Excess of Revenues and Other Financing
Sources Over (Under) Expenditures 278,549 (136) 209,530
Fund Balance (Deficit) - January 1 (286,035) (10,852) (315,547) I
Residual Equity Transfers 10,988 106,017 I
Fund Balance (Deficit) - December 31 $ (7.486) $ $
I
80 I
I
I
I
I
I 453 454 456 457 460 461
Towne
I Lakes
Kolleville SW Lift Towne Heuring WWTF Lift
Estates Station Lakes Meadows Expansion Station
I $ $ $ $ $ $
I 85,867 194,760 44,666
(567) (8,347) (2,123) (462) 4,966 (373)
I 1,100
85,300 (8,347) 193,737 44,204 4,966 (373)
I
31,997 52,590 728 17,741
I 3,603 15,070 142
1,253 15,519 18,795
36,853 15,519 86,455 728 17,883
I
48,447 (23,866) 107,282 43,476 (12,917) (373)
I
I 23,405
(23,405)
23,405 (23,405)
I
48,447 (23,866) 130,687 43,476 (12,917) (23,778)
I (39,475) (667,072) (142,815) (36,510) 405,467 (29,695)
I 690,938 ( 6,966) (392,550) 53,473
$ 8,972 $ $ (12,128) $ $ $
I
I 81
I
CITY OF ALBERTVILLE I
Wright County, Minnesota
CAPITAL PROJECTS FUNDS I
COMBINING STATEMENT OF REVENUES, EXPENDITURES
AND CHANGES IN FUND BALANCE
Year Ended December 31,2003 I
(With Comparative Totals for the Year Ended December 31,2002)
(Continued)
462 II 463 I I 464 I I 465 I
NW Albertville CSAH I
Commercial Business 19
Coborn's Park Park Widening
Revenues: I
Property Taxes $ $ $ $
Special Assessments 247,754
Charges for Services I
Miscellaneous Revenues:
Investment Income (3,629) (6,967) (29) 6,208
Other Revenues I
Total Revenues 244,125 (6,967) (29) 6,208
Expenditures: I
Other 16,068
Capital Outlay:
Engineer Fees 8,183 18,699 16,862 I
Legal Fees 1,898 1,320
Other Professional Services 4,927 131,105 262 2,896
Total Expenditures 15,008 151 , 124 262 35,826 I
Excess of Revenues Over
(Under) Expenditures 229,117 (158,091 ) (291) (29,618) I
Other Financing Sources:
Bond Proceeds 1,538,518 1,647,695
Operating Transfer In I
Operating Transfer Out (163,375)
Total Other Financing Sources 1,375,143 1,647,695
Excess of Revenues and Other Financing I
Sources Over (Under) Expenditures 229,117 1,217,052 (291) 1,618,077
Fund Balance (Deficit) - January 1 (280,819) (1,323,438) (2,321 ) I
Residual Equity Transfers (Out) 2,612 I
Fund Balance (Deficit) - December 31 $ (51,702) $ (106,386) $ $ 1,618,077
I
82 I
I
I
I
I
I 466 467 468 469
I Public CR37 CSAH Wright
Works Traffic 19 County Totals
Facility Light Ramps Transportation 2003 2002
I $ $ $ $ $ 101,335 $ 102,989
275,967 126,400
I 1,255,711 12,700
(41) (7) (54) (33,401) (44,461)
(4)
I 1,268 11,745
(41) (7) (54) (4) 1,600,880 209,373
I 94,881 99,155
I 67,996 3,682 17,361 7,097 620,450 675,055
39,896 34,086
115,302 1,652,978 1,683,097
I 67,996 118,984 17,361 7,097 2,408,205 2,491,393
(68,037) (118,991) (17,415) (7,101) (807,325) (2,282,020)
I
3,186,213
I 88,496
(186,780)
3,087,929
I
(68,037) (118,991) (17,415) (7,101) 2,280,604 (2,282,020)
I (3,523,403) (1,241,383)
I 394,927
$
$ (68,037) $ (118,991) (17 ,415) $ (7,101) $ (847,872) $ (3,523,403)
I
I 83
(THIS PAGE LEFT BLANK INTENTIONALLY.)
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
84 I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
CITY OF ALBERTVILLE
Wright County, 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.
85
I
CITY OF ALBERTVILLE I
Wright County, Minnesota
ENTERPRISE FUNDS I
COMBINING BALANCE SHEET
December 31, 2003
(With Comparative Totals for December 31,2002) I
601 II 602 II 604
Sanitary Storm I
Sewer Water Water
ASSETS:
Current Assets: I
Cash and Cash Equivalents $ 137,696 $ 1,507,046 $ 414,860
Accounts Receivable 119,817 122,200 15,450
Due from Other Governments 23,569 35,394 85,466 I
Total Current Assets 281,082 1,664,640 515,776
Fixed Assets: I
Land 190,269
Sewer Plant and Lines 7,418,792
Water Main 436,894 I
Machinery and Equipment 193,560 42,710
Construction in Progress 424,533 315,867 215,556
Total Cost 8,227,154 795,471 215,556 I
Less: Accumulated Depreciation (1,320,279) (47,794)
Net Fixed Assets 6,906,875 747,677 215,556
Total Assets $ 7,187,957 $ 2,412,317 $ 731 ,332 I
LIABILITIES AND FUND EQUITY: I
Current Liabilities:
Cash Overdraft $ $ $
Accounts Payable 5,166 1,523
Due to Other Governments 189,450 I
Current Maturities of Long-Term Debt 99,931
Total Current Liabilities 105,097 190,973
Long-Term Debt, Less Current Portion I
G.O. Revenue Notes - PFA 814,437
Total Liabilities 919,534 190,973 I
Fund Equity: I
Contributed Capital 5,947,983 752,761 157,934
Retained Earnings:
Unreserved 320,440 1,468,583 573,398 I
Total Fund Equity 6,268,423 2,221,344 731,332
Total Liabilities and Fund Equity $ 7,187,957 $ 2,412,317 $ 731 ,332 I
86 I
I
CITY OF ALBERTVILLE I
Wright County, Minnesota
ENTERPRISE FUNDS I
COMBINING STATEMENT OF REVENUES, EXPENSES AND
CHANGES IN RETAINED EARNINGS
Year Ended December 31, 2003 I
(With Comparative Totals for the Year Ended December 31, 2002)
601 I I 602 I I 604 I
Sanitary Storm
Sewer Water Water I
Operating Revenues:
Charges for Services $ 415,436 $ 109,715 $ 107,552 I
Water Trunk Fees 144,626
Water Availability Charges 112,945
Penalties 12,289 19,923 1,467 I
Total Operating Revenues 427,725 387,209 109,019
Operating Expenses: I
Salaries and Benefits 82,123 62,674
Repairs and Maintenance 7,527 17,925 1,066
Supplies 34,001 9,881 I
Professional Services 220 65,759
Utilities 32,822
Depreciation 164,308 15,064 I
Miscellaneous 1,247 959
Total Operating Expenses 322,028 106,723 66,825
Operating Income 105,697 280,486 42,194 I
Nonoperating Revenues (Expenses): I
Water Meter Sales 38,105
Interest Income (Expense) 879 10,883 3,644 I
Bond Interest Expense and Fiscal Charges (32,052)
Water Meter Purchases (18,085)
Total Nonoperating Revenues (Expenses) (31,173) 30,903 3,644 I
Net Income 74,524 311,389 45,838
Retained Earnings - January 1 245,916 1,162,525 527,560 I
Residual Equity Transfers (5,331) I
Retained Earnings - December 31 $ 320,440 $ 1,468,583 $ 573,398
I
88 I
CITY OF ALBERTVILLE
Wright County, Minnesota
ENTERPRISE FUNDS
COMBINING STATEMENT OF CASH FLOWS
Year Ended December 31, 2003
(With Comparative Totals for the Year Ended December 31, 2002)
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) in Due from Other Governments
(Decrease) Increase in Accounts Payable
Increase (Decrease) in
Due to Other Governments
Total Adjustments
Net Cash Provided by Operating Activities
Cash Flows from Noncapital Financing Activities:
Advances to Other Funds
Cash Flows from Capital and Related Financing Activities:
Principal Payments on Bonds
Transfers to Other Funds
Interest and Fiscal Charges Paid on Bonds
Proceeds from Sales of Water Meters
Acquisition of Water Meters
Acquisition of Fixed Assets
Net Cash Provided (Used) by Capital and Related
Financing Activities
Cash Flows from Investing Activities:
Interest on Investments
Net Increase in Cash and Cash Equivalents
Cash and Cash Equivalents, January 1
Cash and Cash Equivalents, December 31
601 I I
Sanitary
Sewer
$
105,697 $
164,308
(5,025)
3,263
2,155
164,701
270,398
(67,878)
(32,052)
(13,539)
(113,469)
879
157,808
(20,112)
$ 137,696
602
Water
280,486
15,064
(35,868)
(6,773)
(304)
97,429
69,548
350,034
(5,331)
38,105
( 18,085)
(14,301 )
10,883
361,305
1,145,741
$ 1,507,046
388
I I
604
Storm
Water
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
$
42,194
(2,173)
(343)
(2,516)
39,678
(57,621)
(57,621)
3,644
(14,299)
429,159
$
414,860
90
I
I
I
I
I Year Ended December 31
2003 2002
I $ 428,377 $ 478,197
I 179,372 165,435
I (43,066) (39,884)
(3,853) (3,801)
1,851 1,862
I 97,429 1,348
231,733 124,960
I 660,110 603,157
I 40,000
I (67,878) (62,741)
I (5,331)
(32,052) (37,189)
38,105 34,995
I ( 18,085) (34,825)
(85,461) (53,147)
I (170,702) (152,907)
I 15,406 32,005
I 504,814 522,255
1,554,788 1,032,533
I $ 2,059,602 $ 1,554,788
I 91
CITY OF ALBERTVILLE
Wright County, Minnesota
AGENCY FUND
Agency Funds are used to administer resources received and held by the City in a trustee capacity or as an
agent for others. Agency Funds are purely custodial and thus do not involve measurement of results of
operations.
The Agency Fund presently established is the Landscaping Escrow. This fund accounts for cash resources
collected by developers held for a brief period and then disbursed to authorized recipients.
92
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
ASSETS:
I Cash and Investments -
Landscaping Escrow
I
I
I'
I
I
I
I
I
I
I
I
I
I
CITY OF ALBERTVILLE
Wright County, Minnesota
AGENCY FUND
STATEMENT OF CHANGES IN ASSETS AND LIABILITIES
Year Ended December 31, 2003
Balance
January 1,
2003
Additions
Deductions
$
316,000
$
331,750
$
232,417
LIABILITIES:
Accounts Payable -
Landscaping Escrow
$
316,000
$
331,750
$
232,4 17
Balance
December 31,
2003
$ 248,1 67
$ 248,1 67
93
CITY OF ALBERTVILLE
Wright County, Minnesota
GENERAL FIXED ASSETS ACCOUNT GROUP
General Fixed Assets are those fixed assets of a governmental jurisdiction which are not accounted for in an
Enterprise or Trust Fund. To be classified as a fixed asset in this category, a specific piece of property must
possess three attributes: (1) tangible nature, (2) a life longer than the current fiscal year; and (3) a significant
value.
94
I
I
I
I
I
I
I
'I
I
'I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
CITY OF ALBERTVILLE
Wright County, Minnesota
STATEMENT OF GENERAL FIXED ASSETS
(UNAUDITED)
December 31, 2003 and 2002
2003 2002
General Fixed Assets:
Land $ 333,959 $ 35,566
Buildings 120,218 120,218
Improvement Other than Buildings 78,169 78,169
Machinery and Equipment 864,130 864,130
Investment in General Fixed Assets $ 1.396,476 $ 1 ,098,083
95
CITY OF ALBERTVILLE
Wright County, Minnesota
GENERAL LONG-TERM DEBT ACCOUNT GROUP
General obligation bonds and other forms oflong-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-t~rm indebtedness which is backed by the full faith and credit ofthe 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.
96
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I Total Available and to be Provided for
Payment of General Long-Term Debt:
I
I
I
I
I
I
I
I
I
I
I
I
CITY OF ALBERTVILLE
Wright County, Minnesota
STATEMENT OF GENERAL LONG-TERM DEBT
December 31, 2003 and 2002
2003
2002
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
$
370,959
$ 201,418
6,502,870
4,304,144
$ 6,873,829
$ 4,505,562
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
G.O. Improvement Bonds, Series 2003A
Capital Lease Payable
$ $ 10,000
47,800 65,000
60,000 80,000
20,000 40,000
135,000 165,000
790,000 820,000
630,000 1,010,000
1,930,000 2,265,000
3,235,000
26,029 50,562
$ 6,873,829 $ 4,505,562
Total General Long-Term Debt
97