2007 Audited Financial Statements
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CITY OF ALBERTVILLE, MINNESOTA
TABLE OF CONTENTS
DECEMBER 31, 2007
Pa eg No•
' INTRODUCTORY SECTION
Elected and Appointed Officials 1
' FINANCIAL SECTION
Independent Auditor's Report 2 - 3
Management's Discussion and Analysis I - XI
Basic Financial Statements
Government-wide Financial Statements
Statement of Net Assets 4
Statement of Activities 5 - 6
' Fund Financial Statements
Governmental Funds
' Balance Sheet
Reconciliation of the Balance Sheet to the Statement of Net Assets 7 - 8
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Statement of Revenues, Expenditures and Changes in Fund Balances (Deficits) 10 - 11
Reconciliation of the Statement of Revenues, Expenditures and Changes in Fund Balances
to the Statement of Activities 12
' General Fund
Statement of Revenues, Expenditures and Changes in Fund Balances -Budget and Actual 13
Proprietary Funds
Statements of Net Assets 14 - 15
Reconciliation of the Proprietary Statements of Net Assets to the Statement of Net Assets 16
Statements of Revenues, Expenses and Changes in Fund Net Assets 17 - 18
' Reconciliation of the Statement of Revenues, Expenses and Changes in Fund Net Assets
to the Statement of Activities 19
Statements of Cash Flows 20 - 23
Fiduciary Funds
' Statement of Fiduciary Net Assets 24
Notes to the Financial Statements 25 - 51
COMBINING AND INDIVIDUAL FUND FINANCIAL STATEMENTS AND SCHEDULES
Nonmajor Governmental Funds
Combining Balance Sheet 52
' Combining Statement of Revenues, Expenditures and Changes in Fund Balances 53
Nonmajor Capital Projects Funds
Combining Balance Sheet 54 - 58
' Combining Schedule of Revenues, Expenditures and Changes in Fund Balances (Deficits) 59 - 63
General Fund
Schedule of Revenues, Expenditures and Changes in Fund Balances -Budget and Actual 64 - 68
Debt Service Fund
' Combining Balance Sheet 69 - 71
Combining Schedule of Revenues, Expenditures and Changes in Fund Balances (Deficits) 72 - 74
' Agency Funds
Combining Statement of Changes in Assets and Liabilities
75
Summary Financial Report
Revenues and Expenditures for General Operations -Governmental Funds 76
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' April 7, 2008
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Expert advice. When you need it.s"'
INDEPENDENT AUDITORS' REPORT
Honorable Mayor and Members
of the City Council
City of Albertville
Albertville, Minnesota
We have audited the accompanying financial statements of the governmental activities, the
business-type activities, each major fund and the aggregate remaining fund information of the
City of Albertville, Minnesota, as of and for the year ended December 31, 2007, which
collectively comprise the City's basic financial statements as listed in the Table of Contents.
These financial statements are the responsibility of the City's management. Our responsibility
is to express opinions on these financial statements based on our audit. The prior year partial
comparative information has been derived from the City's 2006 financial statements and, in
our report dated Apri127, 2007, we expressed unqualified opinions on the respective financial
statements of the governmental activities, the business-type activities, each major fund and the
aggregate remaining fund information.
We conducted our audit in accordance with U.S. generally accepted auditing standards and the
standards applicable to financial audits contained in Government Auditing Standards, issued by
the Comptroller General of the United States. Those Standards require that we plan and perform
the audit to obtain reasonable assurance about whether the financial statements are free of
material misstatement. An audit includes examining, on a test basis, evidence supporting the
amounts and disclosures in the financial statements. An audit also includes assessing the
accounting principles used and significant estimates made by management, as well as evaluating
' the overall financial statement presentation. We believe our audit provides a reasonable basis for
our opinions.
In our opinion, the financial statements referred to above present fairly, in all material respects,
' the respective financial position of the governmental activities, the business-type activities,
each major fund and the aggregate remaining fund information of the City of Albertville,
Minnesota, as of December 31, 2007, and the respective changes in financial position and,
' where applicable, cash flows thereof and the budgetary comparison for the General Fund for
the year then ended in conformity with U.S. generally accepted accounting principles.
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In accordance with Government Auditing Standards, we have also issued our report dated
April 7, 2008, on our consideration of the City's internal control over financial reporting and
on our tests of its compliance with certain provisions of laws, regulations, contracts and grant
agreements and other matters. The purpose of that report is to describe the scope of our testing
of internal control over financial reporting and compliance and the results of that testing, and
not to provide an opinion on the internal control over financial reporting or on compliance.
That report is an integral part of an audit performed in accordance with Government Auditing
Standards and should be considered in assessing the results of our audit.
The Management's Discussion and Analysis, which follows this report letter, is not a required
part of the basic financial statements but is supplementary information required by U.S.
generally accepted accounting principles. We have applied certain limited procedures, which
consisted principally of inquiries of management regarding the methods of measurement and
presentation of the supplementary information. However, we did not audit the information and
express no opinion on it.
Our audit was conducted for the purpose of forming opinions on the financial statements that
collectively comprise the City's basic financial statements. The combining and individual fund
financial statements and schedules identified in the Table of Contents are presented for
purposes of additional analysis and are not a required part of the basic financial statements.
Such information has been subjected to the auditing procedures applied in the audit of the basic
financial statements and, in our opinion, is fairly stated in all material respects in relation to the
basic financial statements taken as a whole.
KERN, DEWENTER, VIERS, LTD.
Minneapolis, Minnesota
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Management's Discussion and Analysis
As management of the City of Albertville, Minnesota, (the City), we offer readers of the City's financial statements this narrative
overview and analysis of the financial activities of the City for the fiscal year ended December 31, 2007.
Financial Highlights
• The assets of the City exceeded its liabilities at the close of the most recent fiscal year by $46,852,729 (net assets). Of
this amount, $5,587,783(unrestricted net assets) may be used to meet the City's ongoing obligations to citizens and
creditors.
• The City's total net assets increased by $4,574.805. This increase is due to the large increases in capital grants and
contributions in both the governmental and business-type activities.
• As of the close of the current fiscal year, the City's governmental funds reported combined ending fund balances of
$11,379,685, an increase of $1,015,122 in comparison with the prior year. Approximately 75 percent of this total
amount, $8,538,240, is available for spending at the City's discretion.
• At the end of the current fiscal year, unreserved fund balance for the General fund was $792,457, or 25 percent of total
General fund 2007 expenditures.
• The City's total debt increased by $2,842,565 or 19 percent during the current fiscal year. The key factor of this increase
was the issuance of the 2007 G.O. Improvement bond.
Overview of the Financial Statements
This discussion and analysis is intended to serve as an introduction to the City's basic financial statements. The City's basic
financial statements comprise three components: 1) government-wide financial statements, 2) fund financial statements, and 3)
notes to the financial statements. This report also contains other supplemental information in addition to the basic financial
statements themselves.
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Management Discussion and Analysis -Continued
February 14, 2008
The fmancial statements also include notes that explain some of the information in the financial statements and provide more
detailed data. The statements are followed by a section of combining and individual fund financial statements and schedules
which further explain and support the information in the financial statements. Figure 1 shows how the required parts of this
annual report are arranged and relate to one another. In addition to these required elements, we have included a section with
combining and individual fund financial statements and schedules that provide details about non-major governmental funds,
which are added together and presented in single columns in the basic financial statements.
Figure 1
Required Components of the
City's Annual Financial Report
Management's Sasic Financial Required
Discussion and Statements Supplementary
Analysis Information
Government-wide Fund Notes to the
Financial Financial Financial
Statements Statements Statements
Summary Detail
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Management Discussion and Analysis -Continued
February 14, 2008
Figure 2 summarizes the major features of the City's financial statements, including the portion of the City government they
cover and the types of information they contain. The remainder of this overview section of management's discussion and analysis
explains the structure and contents of each of the statements.
Figure 2
Major features of the Government-wide and Fund Financial Statements
Fund Financial Statements
Government-wide Governmental Funds Proprietary Funds
Statements
Scope Entire City government The activities of the City that Activities the City operates
(except fiduciary funds) and are not proprietary or similar to private businesses,
the City's component units fiduciary, such as police, fire such as the water and sewer
and parks system
Required financial • Statement of Net Assets • Balance Sheet • Statements of Net Assets
statements . Statement of Activities • Statement of Revenues, • Statements of Revenues,
Expenditures, and Expenses and Changes in
Changes in Fund Fund Net Assets
Balances • Statements of Cash
Flows
Accounting Basis and Accrual accounting and Modified accrual accounting Accrual accounting and
measurement focus economic resources focus and current financial economic resources focus
resources focus
Type of asset/liability All assets and liabilities, both Only assets expected to be All assets and liabilities, both
information financial and capital, and used up and liabilities that financial and capital, and
short-term and long-term come due during the year or short-term and long-term
soon thereafter; no capital
assets included
Type of in flow/out flow All revenues and expenses Revenues for which cash is All revenues and expenses
information during year, regardless of received during or soon after during the year, regardless of
when cash is received or paid the end of the year; when cash is received or paid
expenditures when goods or
services have been received
and payment is due during
the year or soon thereafter
Government-wide Financial Statements
The government-wide financial statements are designed to provide readers with a broad overview of the City's finances, in a
manner similar to aprivate-sector business.
The statement of net assets presents information on all of the City's assets and liabilities, with the difference between the two
reported as net assets. Over time, increases or decreases in net assets may serve as a useful indicator of whether the financial
position of the City is improving or deteriorating.
The statement of activities presents information showing how the City's net assets changed during the most recent fiscal year. All
changes in net assets are reported as soon as the underlying event giving rise to the change occurs, regardless of the timing of
related cash flows. Thus, revenues and expenses are reported in this statement for some items that will only result in cash flows
in future fiscal periods (e.g., uncollected taxes and earned but unused vacation leave).
Both of the government-wide financial statements distinguish functions of the City that are principally supported by taxes and
intergovernmental revenue (governmental activities) from other functions that are intended to recover all or a significant portion
of their costs through user fees and charges (business-type activities). The governmental activities of the City include general
government, public safety, public works, culture and recreation, economic development and interest on long-term debt. The
business-type activities of the City include sewer, water, and storm water.
The government-wide financial statements can be found on pages 4 - 6 of this report.
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Management Discussion and Analysis -Continued
February 14, 2008
Fund Financial Statements
A fund is a grouping of related accounts that is used to maintain control over resources that have been segregated for specific
activities or objectives. The City, like other state and local governments, uses fund accounting to ensure and demonstrate
compliance with finance-related legal requirements. All of the funds of the City can be divided into three categories:
' governmental funds, proprietary funds and fiduciary funds.
Governmental funds. Governmental funds are used to account for essentially the same functions reported as governmental
activities in the government-wide financial statements. However, unlike the government-wide financial statements, governmental
fund financial statements focus on near-term inflows and outflows of spendable resources, as well as on balances of spendable
resources available at the end of the fiscal year. Such information may be useful in evaluating a government's near term
financing requirements.
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Because the focus of governmental funds is narrower than that of the government-wide financial statements, it is useful to
compare the information presented for governmental funds with similar information presented for governmental activities in the
government-wide financial statements. By doing so, readers may better understand the long-term impact by the government's
near-term financing decisions. Both the governmental fund balance sheet and the governmental fund statement of revenues,
expenditures and changes in fund balances provide a reconciliation to facilitate this comparison between governmental funds and
governmental activities.
The City maintains 42 individual governmental funds, thirteen of which are debt service funds. Information is presented
separately in the governmental fund balance sheet and in the governmental fund statement of revenues, expenditures and changes
in fund balances for the General fund, Debt Service, Sewer Access, Water Access, Closed Capital Projects, Prairie Run and
CSAH 19 and 50th Street funds -all of which are considered to be major funds. Data from the other governmental funds are
combined into a single, aggregated presentation. Individual fund data for each of these non-major governmental funds is
provided in the form of combining statements or schedules elsewhere in this report.
The City adopts an annual appropriated budget for its General fund. A budgetary comparison statement has been provided for the
General fund to demonstrate compliance with this budget.
The basic governmental fund financial statements can be found on pages 7 - 13 of this report.
Proprietary funds. The City maintains one type of proprietary fund. Enterprise funds are used to report the same functions
presented as business-type activities in the government-wide fmancial statements. The City uses enterprise funds to account for
its sewer, water and storm water operations.
Proprietary funds provide the same type of information as the government-wide financial statements, only in more detail. The
proprietary fund financial statements provide separate information for each of the enterprise funds.
The basic proprietary fund financial statements can be found on pages 14 - 23 of this report.
Fiduciary funds. Fiduciary funds are used to account for resources held for the benefit of parties outside the City. Fiduciary
funds are not reflected in the government-wide financial statements because the resources of those funds are not available to
support the City's own programs. The accounting used for fiduciary funds is much like that used for proprietary funds.
The basic fiduciary fund financial statements can be found on page 24 of this report.
Notes to the Financial Statements
The notes provide additional information that is essential to a full understanding of the data provided in the government-wide and
fund financial statements. The notes to the financial statements can be found on pages 25 - 51 of this report.
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Management Discussion and Analysis -Continued
February 14, 2008
Other Information
The combining statements referred to earlier in connection with non-major governmental funds are presented following the notes
to financial statements. Combining and individual fund statements and schedules can be found on pages 52 - 76 of this report.
Government-wide Financial Analysis
As noted earlier, net assets may serve over time as a useful indicator of a government's financial position. In the case of the City,
assets exceeded liabilities by $46,852,729 at the close of the most recent fiscal year.
By far, the largest portion of the City's net assets (59 percent) reflects its investment in capital assets (e.g., land, buildings,
machinery and equipment), less any related debt used to acquire those assets that is still outstanding. The City uses these capital
assets to provide services to citizens; consequently, these assets are not available for future spending. Although the City's
investment in its capital assets is reported net of related debt, it should be noted that the resources needed to repay this debt must
be provided from other sources, since the capital assets themselves cannot be used to liquidate these liabilities.
Assets
' Current and other assets
Capital assets
' Total assets
Liabilities
Long-term liabilities outstanding
' Other liabilities
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Total liabilities
Net Assets
Invested in capital assets,
net of related debt
Restricted
Unrestricted
Total net assets
Summary of Net Assets
Governmental Activities
Increase
2007 2006 (Decrease)
Business-type Activities
Increase
2007 2006 (Decrease)
$ 10,469,073 $ 7,338,589 $ 3,130,484 $ 11,205,227 $ 9,296,489 $ 1,908,738
32,185,893 28,112,203 4,073,690 12,358,898 12,248,726 110,172
42,654,966 35,450,792 7,204,174 23,564,125 21,545,215 2,018,910
11,664,502 8,923,647 2,745,855 6,144,691 5,676,330 468,361
1,188,099 688,013 500,086 364,070 504,948 (140,878)
12,857,601 9,611,660 3,245,941 6,508,761 6,181,278 327,483
20,784,940 19,214,778 1,570,162 6,894,960 6,572,396 322,564
7,295,286 5,642,284 1,653,002 6,289,760 5,605,029 684,731
1,717,139 982,070 735,069 3,870,644 3,186,512 684,132
$ 29,797,365 $ 25,839,132 $ 3,958,233 $ 17,055,364 $ 15,363,937 $ 1,691,427
An additional portion of the City's net assets, $13,585,046, represents resources that are subject to external restrictions on how
they may be used. The remaining balance of unresti°icted net assets $5,587,783 may be used to meet the City's ongoing
obligations to citizens and creditors.
At the end of the current fiscal year, the City is able to report positive balances in all three categories of net assets, both for the
City as a whole, as well as for its separate governmental and business-type activities.
The City's net assets increased $4,574,805 during the current fiscal year. The business type activities increased the net assets by
$1,494,577, and the governmental activities increased the net assets by $3,080,228.
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Management Discussion and Analysis -Continued
February 14, 2008
Governmental activities. Governmental activities increased the City's net assets by $3,080,228, thereby accounting for 67
percent of the total growth in the ne t assets of the City. Key elements of this incre ase are as follows:
Changes in Net Assets
Governmental Activities Busine ss-type Activities
Increase Increase
2007 2006 (Decrease) 2007 2006 (Decrease)
Revenues
Program revenues
Charges for services $ 867,131 $ 1,329,332 $ (462,201) $ 1,981,295 $ 2,666,973 $ (685,678)
Operating grants and contributions 317,112 104,713 212,399 4,664 - 4,664
Capital grants and contributions 2,967,450 1,304,416 1,663,034 1,906,378 102,532 1,803,846
General revenues
Taxes
Properiytaxes 2,272,532 1,997,713 274,819 - - -
Tax increment 109,895 98,546 11,349 - - -
State aids 94,814 13,056 81,758 - - -
Grants and contributions
not restricted to
specific programs 27,003 13,717 13,286 - - -
Gain on sale of capital assets 129;854 - 129,854 - - -
Unrestricted investment earnings 194,044 258,786 (64,742) 314,190 265,578 48,612
Total revenues 6,979,835 5,120,279 1,859,556 4,206,527 3,035,083 1,171,444
Expenses
General government 905,429 939,143 (33,714) - - -
Public safety 1,202,529 1,200,821 1,708 - - -
Public works 1,344,124 3,150,492 (1,806,368) - - -
Culture and recreation 268,040 59,069 208,971 - - -
Economicdevelopment 235,425 624,550 (389,125) - - -
Interest on long-term debt 424,709 415,400 9,309 - - -
Sewer - - - 858,726 834,895 23,831
Water - - - 1,297,307 917,083 380,224
Storm water - - - 75,268 114,825 (39,557)
Total expenses 4,380,256 6,389,475 (2,009,219) 2,231,301 1,866,803 364,498
Increase in net assets
before transfers 2,599,579 (1,269,196) 3,868,775 1,975,226 1,168,280 806,946
Transfer 480,649 336,081 144,568 (480,649) (336,081) (144,568)
Change in net assets 3,080,228 (933,115) 4,013,343 1,494,577 832,199 662,378
Net assets, January 1 25,839,132 24,384,921 1,454,211 15,363,937 14,339,209 1,024,728
Prior period adjustment 878,005 2,387,326 (1,509,321) 196,850 192,529 4,321
Net assets, December 31 $ 29,797,365 $ 25,839,132 $ 3,958,233 $ 17,055,364 $ 15,363,937 $ 1,691,427
• Capital grants and contributions increased by $1,663,034, primarily due to the collection of special assessments.
• Total expenses decreased $2,009,219, with the largest decrease occurring in Public Works.
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Management Discussion and Analysis -Continued
February 14, 2008
The following graph depicts various governmental activities and shows the revenue and expenses directly related to those
activities.
Expenses and Program Revenues -Governmental Activities
$3,000,000
$2,500,000
$2,000,000
$1,500,000
$1,000,000
$500,000
$-
General Public safety Public works Culture and Economic Interest on long-
government recreation development term debt
^ Expenses ^ Program revenues
Revenues by Source -Governmental Activities
Gain on sale of capital
assets
1.9%
Grants and contributions
unrestricted
0.4%
State a;
1.4%
Unrestricted investment
earnings Charges for services
2.8% 12.4%
Operating grants and
ributions
4.5%
Capital grants and
contributions
42.5%
34.1%
For the most part, increases in expenses closely paralleled inflation and. growth in the demand for services.
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Management Discussion and Analysis -Continued
February 14, 2008
Business-type activities. Business-type activities increased the City's net assets by $1,494,577, accounting for 33 percent of the
growth in the City's net assets. Key elements of this increase are as follows:
Expenses and Program Revenues -Business-type Activities
$2,000,000
$1,800,000
$1,600,000
$1,400,000
$1,200,000
$1,000,000
$800,000
$600,000
$400,000
$200,000
$-
Revenues by Source -Business-type Activities
Charges for services
47.1
Operating grants and
contributions
0.1%
Investment earnings
7.5%
vital grants and
.,ontributions
45.3%
• Capital grants and contributions increased by $1,803,846, primarily due to the collection of WAC and SAC fees.
• All three enterprise funds were able to show positive changes in net assets from operations.
• Although expenditures increased in each fund, the increase in revenues was able to offset that change.
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Sewer Water Storm Water
^ Expenses ^ Program revenues
' Management Discussion and Analysis -Continued
February 14, 2008
Financial Analysis of the Government's Funds
As noted earlier, the City uses fund accounting to ensure and demonstrate compliance with finance-related legal requirements.
Governmental funds: The focus of the City's governmental funds is to provide information on near-term inflows, outflows and
' balances of spendable resources. Such information is useful in assessing the City's financing requirements. In particular,
unreserved fund balance may serve as a useful measure of a government's net resources available for spending at the end of the
fiscal year.
As of the end of the current fiscal year, the City's governmental funds had combined ending fund balances of $11,379,685, an
increase of $1,015,122 in comparison with the prior year. Approximately 75 percent of this total amount, $8,538,240, constitutes
unreserved fund balance, which is available for spending at the City's discretion. The remainder of fund balance is reserved to
indicate that it is not available for new spending because it has already been committed for land held for resale in the amount of
$2,735,714 and long-term receivables in the amount of $105,731.
The General fund is the chief operating fund of the City. At the end of the current year, the fund balance of the General fund was
$792,457. As a measure of the General fund's liquidity, it maybe useful to compare fund balance to the following year's budget.
This fund balance represents 24 percent of 2008 budgeted expenditures.
1 The fund balance of the City's General fund decreased $756,547 during the current fiscal year. The key factor of this decrease
was transfers to other funds.
The Debt Service fund balance decreased $12,399 from the prior year for an ending fund balance of $3,491,778.
The Sewer Access fund has a total fund balance of $4,555,077, which was an increase of $663,048 from the prior year. The
increase was the result of the fund collecting resources, but having no expenses other than transfers to other funds. This fund
1 accumulates resources necessary for future expansion of the City's sewer utility.
The Water Access fund showed a decrease of fund balance of $14,962. The ending fund balance was $1,498,663. The primary
causes for the decrease are capital expenditures and transfers to other funds.
The Closed Capital Projects fund has an ending fund deficit of $131,985. The fund balance (deficit) decreased $282,365 during
the year, primarily due to transfers to other funds. The fund deficit is planned to be eliminated through transfers from other funds.
The Prairie Run fund has a deficit fund balance of $805,932, which was an increase of $55,117 from the prior year. The increase
was attributable to collection of special assessments.
The CSAH 19 and 50`}' Street fund deficit was $5,716 at the end of the year. The fund balance decreased $2,791 .during 2007. The
decrease in fund balance was caused by expenditures exceeding bond proceeds during the year.
' Proprietary funds: The City's proprietary funds provide the same type of information found in the government-wide financial
statements, but in more detail.
Unrestricted net assets of the enterprise funds at the end of the year amounted to $3,897,330. The total growth in net assets for
the funds was $809,846. Other factors concerning the fmances of these funds have already been addressed in the discussion of
the City's business-type activities.
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General fund Budgetary Highlights
Management Discussion and Analysis -Continued
February 14, 2008
The City's General fund budget was not amended during the year. The budget called for an increased fund balance. However the
actual results were largely different. Expenditures exceeded revenues by $22,134; however the City did not budget for any other
financing sources or uses. Other financing uses provided for $734,413 of the total $756,547 decrease in fund balance.
Some of the significant variances provided by revenues and expenditures are briefly summarized as follows:
• A $168,801 positive variance in miscellaneous revenue was offset by negative variances of $190,707 and $147,642 in
Licenses and Permits and Property Taxes respectively.
• An $87,621 negative variance in current expenditures was offset with a $91,552 positive variance in capital
expenditures.
• The two largest variances were provided by: General government exceeded appropriations by $199,168 and Public
Safety was under budget by $131,795.
Capital Asset and Debt Administration
Capital Assets: The City's investment in capital assets for its governmental and business-type activities as of December 31,
2007, amounts to $44,544,791 (net of accumulated depreciation). This investment in capital assets includes land, construction in
progress, structures, improvements, machinery and equipment, park facilities, roads, highways and bridges. The total increase in
the City's investment in capital assets for the current fiscal year was a 8 percent increase for governmental activities and business-
type activities combined.
Additional information on the City's capital assets can be found in Note 3C on pages 36 - 37 of this report.
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Capital Assets Net of Deprecia tion
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Increase Increase
' 2007 2006 (Decrease) 2007 2006 (Decrease)
Land $ 4,760,719 $ 3,732,869 $ 1,027,850 $ 190,269 $ 190,269 $ -
Construction in progress 7,220,100 8,509,707 (1,289,607) 369,932 - 369,932
' Buildings 2,831,999 2,229,430 602,569 4,472,399 4,589,966 (117,567)
Infrastructure 15,300,014 12,978,215 2,321,799 7,208,881 7,404,972 (196,091)
Land improvements 1,011,091 419,272 591,819 - - -
Vehicles 790,320 891,081 (100,761) 19,460 27,584 (8,124)
Machinery and equipment 271,650 262,362 9,288 97,957 110,059 (12,102)
' Total $ 32,185,893 $ 29,022,936 $ 3,162,957 $ 12,358,898 $ 12,322,850 $ 36,048
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Long-term debt: At the end of the current fiscal year, the City had total bonded debt outstanding of $17,764,357. This amount
consists of general obligation tax increment, general obligation special assessment, general obligation revenue bonds and revenue
bonds. While many of these bonds have their own revenue streams, they are backed by the full faith and credit of the City.
Outstanding Debt
Governmental Activities
Increase
2007 2006 (Decrease)
Management Discussion and Analysis -Continued
February 14, 2008
Business-type Activities
Increase
2007 2006 (Decrease}
General obligation tax
' increment bonds
General obligation special
assessment bonds
General obligation
revenue bonds
Compensated absences
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$ 30,000 $ 55,000 $ (25,000} $ - $ - $ -
5,515,000 2,775,000 2,740,000 800,000 - 800,000
6,085,000 6,330,000 (245,000) 5,334,357 5,761,792 (427,435)
39,502 26,222 13,280 10,334 - 10,334
Total $ 11,669,502 $ 9,186,222 $ 2,483,280 $ 6,144,691 $ 5,761,792 $ 382,899
The City's total debt increased $2,842,565 (19 percent) during the current fiscal year. This is primarily due to the issuance of the
2007 G.O. Special Assessment bond. This bond was issued to pay for many improvements throughout the City. During 2007, the
City made over $1,100,000 of annual debt service payments.
Minnesota statutes limit the amount of net general obligation debt a City may issue to 2 percent of the market value of taxable
property within the City. Net debt is debt payable solely from ad valorem taxes. The City's applicable debt does not exceed the
limit set forth in statute.
Additional information on the City's long-term debt can be found in Note 3E on pages 41 - 44 of this report.
Economic Factors and Next Year's Budgets and Rates
• Property valuations within the City have remained stable during the past year.
• Inflationary trends in the region compare favorably to national indices.
• Utility rates need to be adjusted to meet future capital requirements.
• The City has a number of capital projects in store for 2008, including: CSAH 19 North Improvements, Winter Park,
County Road 37 Lift Station, Utility and Street Improvements to CSAH 37 as well as the decommissioning of a
treatment pond.
All of these factors were considered in preparing the City's budget for the 2008 fiscal year.
Requests for Information
This financial report is designed to provide a general overview of the City's finances for all those with an interest in the City's
finances. Questions concerning any of the information provided in this report or requests for additional financial information
should be addressed to the Finance Director, City of Albertville, P.O. Box 9, 5959 Main Avenue, Albertville, Minnesota 55301.
' -XI-
CITY OF ALBERTVILLE, MINNESOTA
STATEMENT OF NET ASSETS
DECEMBER 31, 2007
ASSETS
Cash and temporary investments
Restricted cash
Receivables
Interest
Delinquent taxes
Accounts
Notes
Special assessments
Internal balances
Due from other governments
Unamortized bond discount
Land held for resale
Capital assets
Land and construction in progress
Depreciable assets, net of accumulated depreciation
TOTAL ASSETS
LIABILITIES
Accounts payable
Contracts payable
Accrued interest payable
Accrued salaries payable
Unearned revenue
Noncurrent liabilities
Due within one year
Compensated absences payable
Bonds payable
Due in more than one year
Compensated absences payable
Bonds payable
TOTAL LIABILITIES
NET ASSETS
Invested in capital assets, net of related debt
Restricted for
Sewer and water access charges
Long-term receivable
Debt service
Capital assets acquisition
Land held for resale
Special revenue
Unrestricted
TOTAL NET ASSETS
The notes to the financial statements are an integral part of this statement.
-4-
Governmental Business-type
Activities Activities Total
$ 5,206,162 $ 7,235,569 $ 12,441,731
77,206 - 77,206
23,624 - 23,624
140,939 - 140,939
338,366 916,800 1,255,166
15,435 - 15,435
3,556,918 418,001 3,974,919
(2,506,172) 2,506,172 -
613,590 5,020 618,610
267,291 123,665 390,956
2,735,714 - 2,735,714
11,980,819 560,201 12,541,020
20,205,074 11,798,697 32,003,771
42,654,966 23,564,125 66,219,091
949,941 310,114 1,260,055
83,058 - 83,058
142,241 5 0,973 193,214
11,539 2,983 14,522
1,320 - 1,320
31,908 8,418 40,326
790,000 455,027 1,245,027
7,594 1,916 9,510
10,840,000 5,679,330 16,519,330
12,857,601 6,508,761 19,366,362
20,784,940 6,894,960 27,679,900
- 6,289,760 6,289,760
105,731 - 105,731
3,531,625 - 3,531,625
754,378 - 754,378
2,735,714 - 2,735,714
167,838 - 167,838
1,717,139 3,870,644 5,587,783
$ 29,797,365 $ 17,055,364 $ 46,852,729
CITY OF ALBERTVILLE, MINNESOTA
STATEMENT OF ACTIVITIES
FOR THE YEAR ENDED DECEMBER 31, 2007
Program Revenues
Operating Capital Grants
Charges for Grants and and
Functions/Programs Expenses Services Contributions Contributions
Governmental activities
General government $ 905,429 $ 775,544 $ 164,971 $ -
Public safety 1,202,529 85,887 84,884 -
Public works 1,344,124 5,700 50,000 2,424,801
Culture and recreation 268,040 - 17,257 -
Economic development 235,425 - - 542,649
Interest on long-term debt 424,709 - - -
Total governmental activities 4,380,256 867,131 317,112 2,967,450
Business-type activities
Sewer utility 858,726 692,890 4,636 1,104,426
Water utility 1,297,307 1,118,401 - 601,616
Storm Water utility 75,268 170,004 28 200,336
Total business-type activities 2,231,301 1,981,295 4,664 1,906,378
Total $ 6,611,557 $ 2,848,426 $ 321,776 $ 4,873,828
General revenues
Taxes
Property taxes levied for general purposes
Property taxes levied for debt service
Tax increments
State aids
Grants and contributions not restricted to specific programs
Unrestricted investment earnings
Gain on sale of capital assets
Transfers
Total general revenues and transfers
Change in net assets
Net assets, January 1
Prior period adjustment
Net assets, December 31
The notes to the financial statements are an integral part of this statement.
-5-
Net (Expenses) Revenues
and Changes in Net Assets
Governmental Business-type
$ 35,086 $ - $ 35,086
(1,031,758) - (1,031,758)
1,136,377 - 1,136,377
(250,783) - (250,783)
307,224 - 307,224
(424,709) - (424,709)
(228,563) - (228,563)
- 943,226 943,226
- 422,710 422,710
- 295,100 295,100
- 1,661,036 1,661,036
(228,563) 1,661,036 1,432,473
1,921,855 - 1,921,855
350,677 - 350,677
109,895 - 109,895
94,814 - 94,814
27,003 - 27,003
194,044 314,190 508,234
129,854 - 129,854
480,649 (480,649) -
3,308,791 (166,459) 3,142,332
3,080,228 1,494,577 4,574,805
25,839,132 15,363,937 41,203,069
878,005 196,850 1,074,855
$ 29,797,365 $ 17,055,364 $ 46,852,729
-6-
CITY OF ALBERTVILLE, MINNESOTA
BALANCE SHEET
GOVERNMENTAL FUNDS
DECEMBER 31, 2007
ASSETS
Cash and temporary investments
Restricted cash
Receivables
Interest
Delinquent taxes
Accounts
Special assessments
Loans
Due from other funds
Due from other governments
Land held for resale
TOTAL ASSETS
LIABILITIES AND FUND BALANCES (DEFICITS)
LIABILITIES
Accounts payable
Contracts payable
Due to other funds
Accrued salaries payable
Deferred revenue
TOTAL LIABILITIES
FUND BALANCES (DEFICITS)
Reserved for
Long-term receivable
Land held for resale
Unreserved, designated for
Working capital
Capital expenditures
Unreserved, undesignated, reported in
Debt service funds
Special revenue funds
Capital projects funds
TOTAL FUND BALANCES (DEFICITS)
Capital
Projects
Debt Sewer
$ 845,763 $ 1,420,608 $ 1,939,381
- 77,206 -
23,624 - -
118,764 22,175 -
42,709 - -
50,151 2,628,336 205,530
- - 2,615,696
38,064 3,738 -
- 2,735,714 -
$ 1,119,075 $ 6,887,777 $ 4,760,607
$ 144,844 $ - $ -
- 745,488 -
11,539 - -
170,235 2,650,511 205,530
326,618 3,395,999 205,530
- 2,735,714 -
792,457 - -
756,064 -
- - 4,555,077
792,457 3,491,778 4,555,077
TOTAL LIABILITIES AND
FUND BALANCES (DEFICITS) $ 1,119,075 $ 6,887,777 $ 4,760,607
The notes to the financial statements are an integral part of this statement.
-7-
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Capital Projects
Closed CSAH 19 Other Total
Water Capital Prairie and 50th Governmental Governmental
Access Projects Run Street Funds Funds
$ 1,509,553 $ - $ - $ 1,263 $ 2,938,528 $ 8,655,096
- - - - - 77,206
- - - - - 23,624
- - - - - 140,939
- 295,657 - - - 338,366
30,490 - 776,101 - 102,330 3,792,938
- - - - 15,435 15,435
- - - - - 2,615,696
- - 16,969 - 554,819 613,590
- - - - - 2,735,714
$ 1,540,043 $ 295,657 $ 793,070 $ 1,263 $ 3,611,112 $ 19,008,604
$ 10,890 $ - $ 2,898 $ 6,979 $
- 70,533 - -
- 357,109 820,003 -
30,490 - 776,101 -
41,380 427,642 1,599,002 6,979
625,678 $ 791,289
189,230 259,763
693,096 2,615,696
- 11,539
1,625,769 7,628,919
105,731 105,731
- 2,735,714
- 792,457
1,597,012 1,597,012
- - - - - 756,064
- - - - 167,838 167,838
1,498,663 (131,985) (805,932) (5,716) 114,762 5,224,869
1,498,663 (131,985) (805,932) (5,716) 1,985,343 11,379,685
$ 1,540,043 $ 295,657 $ 793,070 $ 1,263 $ 3,611,112 $ 19,008,604
-8-
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RECONCILIATION OF THE BALANCE SHEET
TO THE STATEMENT OF NET ASSETS
GOVERNMENTAL FUNDS
FOR THE YEAR ENDED DECEMBER 31, 2007
Total fund balances -governmental $ 11,379,685
Amounts reported for the governmental activities in the statement
of net assets are different because:
Capital assets used in governmental activities are not financial
resources and therefore are not reported as assets in governmental funds.
Cost of capital assets 42,021,513
Less: accumulated depreciation (9,835,620)
Long-term liabilities, including. bonds payable, are not due and payable in the
current period and therefore are not reported as liabilities in the funds.
Long-term liabilities at year-end consist of:
Compensated absences payable (39,502)
Bond principal payable (11,630,000)
Less bond discount net of accumulated amortization 267,291
Some receivables are not available soon enough to pay for the current period's expenditures,
and therefore are deferred in the funds.
Special assessments 3,556,918
Taxes 140,939
Loans 15,435
Governmental funds do not report a liability for accrued interest until due and payable. (142,241)
Activity of certain funds are presented as governmental funds. However, their
functions on a government-wide perspective are business-type.
Sewer Access (4,555,077)
Water Access (1,498,663)
Phillip Morris Lift Station 116,687
Total net assets -governmental activities $ 29,797,365
The notes to the fmancial statements are an integral part of this statement.
-9-
CITY OF ALBERTVILLE, MINNESOTA
STATEMENT OF REVENUES, EXPENDITURES AND
CHANGES IN FUND BALANCES (DEFICITS)
GOVERNMENTAL FUNDS
FOR THE YEAR ENDED DECEMBER 31, 2007
REVENUES
Taxes
Licenses and permits
Intergovernmental
Charges for services
Fines and forfeitures
Special assessments
Interest on investments
Miscellaneous
TOTAL REVENUES
EXPENDITURES
Current
General government
Public safety
Public works
Culture and recreation
Economic development
Capital outlay
General government
Public safety
Public works
Culture and recreation
Economic development
Debt service
Principal
Interest and other
TOTAL EXPENDITURES
EXCESS (DEFICIENCY) OF REVENUES
OVER (UNDER) EXPENDITURES
OTHER FINANCING SOURCES (USES)
Transfers in
Bond issuance
Discount on bonds issued
Sale of capital assets
Transfers out
TOTAL OTHER FINANCING SOURCES (USES)
NET CHANGE IN FUND BALANCES
FUND BALANCES (DEFICITS), JANUARY 1
FUND BALANCES (DEFICITS), DECEMBER 31
The notes to the financial statements are an integral part of this statement.
-10-
Debt
Capital
Projects
Sewer
$ 1,861,916 $ 350,677 $ -
283,287 - -
189,669 - -
587,864 - 965,691
3,450 - -
- 350,018 101,422
61,496 45,013 149,307
178,801 50,000 -
3,166,483 795,708 1,216,420
849,643 - -
1,122,988 - -
544,352 - -
169,137 - -
24,549 - -
421,132 - -
34,968 - -
6,400 - -
15,448 - -
- 765,000 -
- 401,882 -
3,188,617 1,166,882 -
(22,134) (371,174) 1,216,420
133,208 509,105 -
- 71,883 -
- (24,690) -
129,854 - -
(997,475) (197,523) (553,372)
(734,413) 358,775 (553,372)
(756,547) (12,399) 663,048
1,549,004 3,504,177 3,892,029
$ 792,457 $ 3,491,778 $ 4,555,077
Capital Projects
Closed CSAH 19 Other Total
Water Capital Prairie and 50th Governmental Governmental
Access Projects Run Street Funds Funds
$ - $ - $ - $ - $ 109,895 $ 2,322,488
- - - - - 283,287
- - - - 527,887 717,556
589,979 - - - 6,626 2,150,160
- - - - - 3,450
11,637 - 120,478 - 108,278 691,833
56,214 - - 12,658 74,877 399,565
- - - - 12,128 240,929
657,830 - 120,478 12,658 839,691 6,809,268
849,643
1,122,988
19,103 - - - - 563,455
- - - - 77,370 246,507
- - - - 72,001 96,550
- - - - 173,115 594,247
- - - - - 34,968
379,273 15,671 65,361 1,628,394 1,200,521 3,295,620
- - - - 8,005 23,453
- - - - 792,858 792,858
765,000
401,882
~7a,~io i~,oii o~,~oi i,o~a,~y4 ~,~a~,aiv a,iai,i~i
259,454 (15,671) 55,117 (1,615,736) (1,484,179) (1,977,903}
- - - - 1,491,737 2,134,050
- - - 1,613,239 1,549,878 3,235,000
- - - - - (24,690)
- - - - - 129,854
(274,416) (266,694) - (294) (191,415) (2,481,189)
(274,416) (266,694) - 1,612,945 2,850,200 2,993,025
(14,962) (282,365) 55,117 (2,791) 1,366,021 1,015,122
1,513,625 150,380 (861,049) (2,925) 619,322 10,364,563
$ 1,498,663 $ (131,985) $ (805,932) $ (5,716) $ 1,985,343 $ 11,379,685
-11-
CITY OF ALBERTVILLE, NIINNESOTA
RECONCILIATION OF THE STATEMENT OF REVENUES, EXPENDITURES AND
CHANGES IN FUND BALANCES
TO THE STATEMENT OF ACTIVITIES
GOVERNMENTAL FUNDS
FOR THE YEAR ENDED DECEMBER 31, 2007
Total net change in fund balances
Amounts reported for governmental activities in the statement
of activities are different because:
Capital outlays are reported in governmental funds as expenditures. However, in the statement of
activities, the cost of those assets is allocated over the estimated useful lives as depreciation expense.
Capital outlays
Depreciation expense
The issuance of long-term debt provides current financial resources to governmental funds, while
the repayment of principal of long-term debt consumes the current financial resources of governmental
funds. Neither transaction, however, has any effect on net assets. Also, governmental funds report
the effect of issuance costs, premiums, discounts and similar items when debt is first issued,
whereas these amounts are deferred and amortized in the statement of activities.
Principal repayments
Debt issued or incurred
Less costs of issuance
Interest on long-term debt in the statement of activities differs from the amount reported in the
governmental fund because interest is recognized as an expenditure in the funds when it is due,
and thus requires the use of current financial resources. In the statement of activities, however,
interest expense is recognized as the interest accrues, regardless of when it is due.
Governmental fund report debt issuance premiums and discounts as an other financing
source or use at the time of issuance. Premiums and discounts are reported as an
unamortized asset or liability in the district-wide financial statements.
Some expenses reported in the statement of activities do not require the use of current financial resources
and, therefore, are not reported as expenditures in the governmental funds.
Compensated absences
Certain revenues are recognized as soon as they are earned. Under the modified accrual basis of accounting
certain revenues cannot be recognized until they are available to liquidate liabilities of the current period.
Special assessments
Taxes
Loans
Activity of certain funds are presented as governmental funds. However, their
functions on a government-wide perspective are business-type.
Sewer Access
Water Access
Phillip Morris Lift Station
Change in net assets -governmental activities
The notes to the financial statements are an integral part of this statement.
-12-
$ 1,015,122
4,280,188
(1,117,230)
765,000
(3,235,000)
56,154
(35,579)
(18,712)
(13,279)
1,860,789
59,939
(5,765)
(663,048)
14,962
116,687
$ 3,080,228
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CITY OF ALBERTVILLE, MINNESOTA
STATEMENT OF REVENUES, EXPENDITURES AND
CHANGES IN FUND BALANCES -BUDGET AND ACTUAL
GENERAL FUND
FOR THE YEAR ENDED DECEMBER 31, 2007
REVENUES
Taxes
Licenses and permits
Intergovernmental
Charges for services
Fines and forfeitures
Interest on investments
Miscellaneous
TOTAL REVENUES
EXPENDITURES
Current
General government
Public safety
Public works
Culture and recreation
Economic development
Capital outlay
General government
Public safety
Public works
Culture and recreation
TOTAL EXPENDITURES
EXCESS (DEFICIENCY) OF REVENUES
OVER (UNDER) EXPENDITURES
OTHER FINANCING SOURCES (USES)
Transfers in
Sale of capital assets
Transfers out
Variance with
Budgeted Amounts Final Budget -
Actual Positive
Original Final Amounts (Negative)
$ 2,009,558 $ 2,009,558 $ 1,861,916 $ (147,642)
473,994 473,994 283,287 (190,707)
82,500 82,500 189,669 107,169
616,295 616,295 587,864 (28,431)
200 200 3,450 3,250
75,000 75,000 61,496 (13,504)
10,000 10,000 178,801 168,801
3,267,547 3,267,547 3,166,483 (101,064)
650,475 650,475 849,643 (199,168)
1,254,783 1,254,783 1,122,988 131,795
524,101 524,101 544,352 (20,251)
183,989 183,989 169,137 14,852
9,700 9,700 24,549 (14,849)
390,500 390,500 421,132 (30,632}
91,500 91,500 34,968 56,532
40,000 40,000 6,400 33,600
47,500 47,500 15,448 32,052
3,192,548 3,192,548 3,188,617 3,931
74,999 74,999 (22,134) (97,133)
- - 133,208 133,208
- - 129,854 129,854
- - (997,475) (997,475)
TOTAL OTHER FINANCING
SOURCES (USES) - - (734,413) (734,413)
NET CHANGE IN FUND BALANCES 74,999 74,999 (756,547) (831,546)
FUND BALANCES, JANUARY 1 1,549,004 1,549,004 1,549,004 -
FUND BALANCES, DECEMBER 31 $ 1,624,003 $ 1,624,003 $ 792,457 $ (831,546)
The notes to the financial statements are an integral part of this statement.
-13-
CITY OF ALBERTVILLE, MINNESOTA
STATEMENTS OF NET ASSETS
PROPRIETARY FUNDS
DECEMBER 31, 2007 AND 2006
Business-type Activities -Enterprise Funds
Sewer Water
2007 2006 2007 2006
ASSETS
CURRENT ASSETS
Cash and temporary investments $ 1,515,584 $ 1,475,095 $ 888,144 $ 752,157
Receivables
Accounts 399,904 352,470 449,710 290,113
Special assessments, current portion 16,187 - 22,364 -
Due from other governments 1,904 - 1,145 150
TOTAL CURRENT ASSETS 1,933,579 1,827,565 1,361,363 1,042,420
NONCURRENT ASSETS
Deferred special assessments, net of current portion - - - -
Unamortizedbond discount, net 110,054 - - -
CAPITALASSETS, AT COST
Land 190,269 190,269 - -
Buildings 4,702,684 4,702,684 - -
Improvements, other than buildings 8,192,884 8,192,884 820,487 820,487
Machinery and equipment 144,690 144,690 74,124 -
Vehicles 48,870 48,870 42,710 42,710
Construction in progress - - - -
Less: Accumulated depreciation (2,298,049) (1,998,975) (132,700) (103,279)
NET CAPITAL ASSETS 10,981,348 11,280,422 804,621 759,918
TOTAL NONCURRENT ASSETS 11,091,402 11,280,422 804,621 759,918
TOTAL ASSETS 13,024,981 13,107,987 2,165,984 1,802,338
LIABILITIES
CURRENT LIABILITIES
Accounts payable 191,767 284,297 92,800 56,188
Accrued interest payable 40,295 44,749 - -
Accrued salaries payable 1,532 840 1,451 994
Compensated absences payable, current portion 4,209 - 4,209 -
Bonds payable, current portion 455,027 422,936 - -
TOTAL CURRENT LIABILITIES 692,830 752,822 98,460 57,182
NONCURRENT LIABILITIES
Compensated absences payable 958 - 958 -
Bonds payable 4,879,330 5,253,394 - -
TOTALNONCURRENT LIABILITIES 4,880,288 5,253,394 958 -
TOTAL LIABILITIES 5,573,118 6,006,216 99,418 57,182
NET ASSETS
Invested in capital assets, net of related debt 5,757,045 5,604,092 804,621 759,918
Unrestricted 1,694,818 1,497,679 1,261,945 985,238
TOTAL NET ASSETS $ 7,451,863 $ 7,101,771 $ 2,066,566 $ 1,745,156
The notes to the financial statements are an integral part of this statement.
-14-
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Business-type Activities -Enterprise Funds -Continued
Storm Water Totals
2007 2006 2007 2006
$ 1,382,907 $ 693,704 $ 3,786,635 $ 2,920,956
67,186 52,918 916,800 695,501
12,530 - 51,081 -
1,971 1,563 5,020 1,713
1,464,594 748,185 4,759,536 3,618,170
130,900 - 130,900 -
13,611 - 123,665 -
- - 190,269 190,269
- - 4,702,684 4,702,684
215,556 215,556 9,228,927 9,228,927
- - 218,814 144,690
- - 91,580 91,580
253,245 - 253,245 -
(12,559) (7,170) (2,443,308) (2,109,424)
456,242 208,386 12,242,211 12,248,726
600,753 208,386 12,496,776 12,248,726
7,494 44,590 292,061 385,075
10,678 - 50,973 44,749
- - 2,983 1,834
- - 8,418 -
- - 455,027 422,936
18,172 44,590 809,462 854,594
- - 1,916 -
800,000 - 5,679,330 5,253,394
800,000 - 5,681,246 5,253,394
818,172 44,590 6,490,708 6,107,988
216,608 208,386 6,778,274 6,572,396
1,030,567 703,595 3,987,330 3,186,512
$ 1,247,175 $ 911,981 $ 10,765,604 $ 9,758,908
-15-
CITY OF ALBERTVILLE, MINNESOTA
STATEMENTS OF REVENUES, EXPENSES AND
CHANGES IN FUND NET ASSETS
PROPRIETARY FUNDS
FOR THE YEARS ENDED DECEMBER 31, 2007 AND 2006
Business-type Activities -Enterprise Funds
Sewer Water
2007 2006 2007 2006
OPERATING REVENUES
Charges for services $ 692,890 $ 617,078 $ 1,083,165 $ 997,259
OPERATING EXPENSES
Personal services 91,218 67,757 81,582 66,714
Supplies 24,571 24,004 23,458 88,132
Professional services 82,662 6,103 14,371 10,200
Utilities 67,299 56,702 - 250
Insurance 5,000 2,066 3,175 783
Repairs and maintenance 12,986 15,304 18,415 18,797
Remittance to Joint Powers Board - - 705,867 686,305
Depreciation 299,074 296,758 29,421 23,621
Other charges 45,569 41,838 22,642 22,240
TOTAL OPERATING EXPENSES 628,379 510,532 898,931 917,042
OPERATING INCOME 64,511 106,546 184,234 80,217
NONOPERATING REVENUES (EXPENSES)
Interest income 42,608 117,882 27,816 26,623
Special assessments 668 6,365 - 20,754
Interest expense and other (230,347) (250,197) - -
Other income 4,636 7,808 35,236 53,672
TOTAL NONOPERATING
REVENUES (EXPENSES) (182,435) (118,142) 63,052 101,049
INCOME (LOSS) BEFORE TRANSFERS (117,924) (11,596) 247,286 181,266
TRANSFERS
Transfers in 345,290 1,254,004 - -
Transfers out - - - (1,382,767)
TOTAL TRANSFERS 345,290 1,254,004 - (1,382,767)
CHANGE IN NET ASSETS 227,366 1,242,408 247,286 (1,201,501)
NET ASSETS, JANUARY 1 7,101,771 5,625,442 1,745,156 2,946,657
PRIOR PERIOD ADJUSTMENT 122,726 233,921 74,124 -
NET ASSETS, DECEMBER 31 $ 7,451,863 $ 7,101,771 $ 2,066,566 $ 1,745,156
The notes to the financial statement are an integral part of this statement.
-17-
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Business-type Activities -Enterprise Funds -Continued
Storm Water Totals
2007 2006 2007 2006
$ 170,004 $ 142,376 $ 1,946,059 $ 1,756,713
- - 172,800 134,471
172 - 48,201 112,136
5 6,242 107,243 15 3,275 123, 546
- - 67,299 56,952
- - 8,175 2,849
2,488 2,193 33,889 36,294
- - 705,867 686,305
5,389 5,389 333,884 325,768
- - 68,211 64,078
64,291 114,825 1,591,601 1,542,399
105,713 27,551 354,458 214,314
3 8,245 12,432 108,669 156,93 7
200,336 - 201,004 27,119
(10,977) - (241,324) (250,197)
28 (100) 39,900 61,380
227,632 12,332 108,249 (4,761)
333,345 39,883
4,635 - 349,925 1,254,004
(2,786) - (2,786) (1,382,767)
1,849 - 347,139 (128,763)
335,194 39,883 809,846 80,790
911,981 872,098 9,758,908 9,444,197
- - 196,850 233,921
$ 1,247,175 $ 911,981 $ 10,765,604 $ 9,758,908
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CITY OF ALBERTVILLE, MINNESOTA
RECONCILIATION OF THE STATEMENT OF REVENUES, EXPENSES AND
CHANGES IN FUND NET ASSETS
TO THE STATEMENT OF ACTIVITIES
PROPRIETARY FUNDS
FOR THE YEAR ENDED DECEMBER 31, 2007
Total net change in net assets -proprietary funds
Amounts reported for governmental activities in the statement
of activities are different because:
Capital outlays are reported in governmental funds as expenditures. However, in the statement of
activities, the cost of those assets is allocated over the estimated useful lives as depreciation expense.
Capital outlays
Certain revenues are recognized as soon as they are earned. Under the modified accrual
basis of accounting certain revenues cannot be recognized until they are available
to liquidate liabilities of the current period.
Special assessments
Activity of certain funds are presented as governmental funds. However, their
functions on a government-wide perspective are business-type.
Sewer Access
Water Access
Phillip Morris Lift Station
Change in net assets -business-type activities
The notes to the financial statements are an integral part of this statement.
-19-
$ 809,846
116,687
36,645
663,048
(14,962)
(116,687)
$ 1,494,577
CITY OF ALBERTVILLE, MINNESOTA
STATEMENTS OF CASH FLOWS
PROPRIETARY FUNDS
FOR THE YEARS ENDED DECEMBER 31, 2007 AND 2006
Business-type Activities -Enterprise Funds
Sewer Water
2007 2006 2007 2006
CASH FLOWS FROM OPERATING ACTIVITIES
Receipts from customers and users
Payments to suppliers
Payments to employees
NET CASH PROVIDED (USED) BY
OPERATING ACTIVITIES
CASH FLOWS FROM NONCAPITAL
FINANCING ACTIVITIES
Transfers from other fiznds
Proceeds from bonds issued
Bond issuance costs
Special assessments
Intergovernmental
Miscellaneous
Transfers to other funds
NET CASH PROVIDED (USED) BY
NONCAPITAL FINANCING ACTIVITIES
CASH FLOWS FROM CAPITAL FINANCING ACTIVITIES
Acquisition of capital assets
Interest paid on bonds
Principal paid on bonds
NET CASH USED BY
CAPITAL FINANCING ACTIVITIES
CASH FLOWS FROM INVESTING ACTIVITIES
Interest received on investments
NET INCREASE (DECREASE) IN
CASH AND CASH EQUIVALENTS
CASH AND CASH EQUIVALENTS, JANUARY 1
CASH AND CASH EQUIVALENTS, DECEMBER 31
$ 629,269 $ 550,631 $ 901,204 $ 865,531
(239,546) (183,685) (751,316) (904,934)
(85,359) (67,998) (?5,958) (66,801)
304,364 298,948 73,930 (106,204)
345,290 1,254,004 - -
668 6,365 - 20,754
(2,976) 1,034 (995) (150)
4,636 7,808 35,236 53,672
- - - (1,382,767)
347,618 1,269,211 34,241 (1,308,491)
- (1,082,837)
(zz6,666) (242,746)
(427,435) (404,925)
(654,101) (1,730,507)
42,608 117,882
27,816 26,623
40,489 (44,466) 135,987 (1,388,072)
1,475,095 1,519,561 752,157 2,140,229
$ 1,515,584 $ 1,475,095 $ 888,144 $ 752,157
The notes to the financial statement are an integral part of this statement.
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Business-type Activities -Enterprise Funds -Continued
Storm Water Totals
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2007 2006 2007 2006
$ 155,736 $ 134,426 $ 1,686,209 $ 1,550,588
(95,998) (69,046) (1,086,860) (1,157,665)
- - (161,317) (134,799)
59,738
65,380 438,032 258,124
4,635 - 349,925 1,254,004
800,000 - 800,000 -
(13,910) - (13,910) -
56,906 - 57,574 27,119
(408) (4) (4,379) 880
28 (100) 39,900 61,380
(2,786) - (2,786) (1,382,767)
844,465 (104) 1,226,324 (39,384)
(253,245) - (253,245) (1,082,837)
- - (226,666) (242,745)
- - (427,435} (404,925)
(253,245) - (907,346) (1,730,507)
3 8,245 12,432 108,669 156,937
689,203 77,708 865,679 (1,354,830)
693,704 615,996 2,920,956 4,275,786
$ 1,382,907 $ 693,704 $ 3,786,635 $ 2,920,956
-21-
CITY OF ALBERTVILLE, MINNESOTA
STATEMENT OF CASH FLOWS -CONTINUED
PROPRIETARY FUNDS
FOR THE YEARS ENDED DECEMBER 31, 2007 AND 2006
Business-type Activities -Enterprise Funds -Continued
Sewer Water
2007 2006 2007 2006
RECONCILIATION OF OPERATING INCOME TO
NET CASH PROVIDED (USED) BY OPERATING ACTIVITIES
Operating income $
Adjustments to reconcile operating income to
net cash provided (used) by operating activities:
64,511 $ 106,546 $ 184,234 $ 80,217
Depreciation 299,074
(Increase) decrease in assets:
Accounts receivable (47,434)
Special assessments receivable (16,187)
Increase (decrease) in liabilities:
Accounts payable (1,459)
Accrued salaries payable 692
Compensated absences payable 5,167
296,758 29,421 23,621
(66,447) (159,597) (131,728)
- (22,364) -
(37,668) 36,612 (78,227)
(241) 457 (87)
- 5,167 -
NET CASH PROVIDED (USED) BY
OPERATING ACTIVITIES $ 304,364 $ 298,948 $ 73,930 $ (106,204)
SCHEDULE OF NONCASH CAPITAL AND
FINANCING ACTIVITIES
Prior period adjustment $ 122,726 $ 233,921 $ 74,124 $ -
Amortization of bond discount 8,135 8,135 - -
TOTAL NONCASH CAPITAL
AND FINANCING ACTIVITIES $ 130,861 $ 242,056 $ 74,124 $ -
The notes to the financial statements are an integral part of this statement.
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CITY OF ALBERTVILLE, MINNESOTA
NOTES TO THE FINANCIAL STATEMENTS
DECEMBER 31, 2007
Note 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
A. Reporting Entity
The City of Albertville, Minnesota (the City) operates under the "Optional Plan A" form of government as
defined in the State of Minnesota statutes. Under this plan, the government of the City is directed by a Council
composed of an elected Mayor and four elected Council members. The Council exercises legislative authority
and determines all matters of policy. The Council appoints personnel responsible for the proper administration
of all affairs relating to the City. The City has considered all potential units for which it is financially
accountable, and other organizations for which the nature and significance of their relationship with the City are
such that exclusion would cause the City's financial statements to be misleading or incomplete. The
Governmental Accounting Standards Board (GASB} has set forth criteria to be considered in determining
financial accountability. These criteria include appointing a voting majority of an organization's governing
body, and (1) the ability of the primary government to impose its will on that organization or (2) the potential for
the organization to provide specific benefits to, or impose specific financial burdens on the primary government.
The City has no component units.
B. Government-wide and Fund Financial Statements
The government-wide financial statements (i.e., the statement of net assets and the statement of changes in net
assets) report information on all of the nonfiduciary activities of the City. Governmental activities, which
normally are supported by taxes and intergovernmental revenues, are reported separately from business-type
activities, which rely to a significant extent on fees and charges for support.
The statement of activities demonstrates the degree to which the direct expenses of a given function or segment
are offset by program revenues. Direct expenses are those that are clearly identifiable with a specific function or
segment. Program revenues include 1) charges to customers or applicants who purchase, use, or directly benefit
from goods, services or privileges provided by a given function or segment and 2) grants and contributions that
are restricted to meeting the operational or capital requirements of a particular function or segment. Taxes and
other items not properly included among program revenues are reported instead as general revenues.
Separate financial statements are provided for governmental funds, proprietary funds and fiduciary funds.
Major individual governmental funds and major individual enterprise funds are reported as separate columns in
the fund financial statements.
C. Measurement Focus, Basis of Accounting and Financial Statement Presentation
The government-wide financial statements are reported using the economic resources measurement focus and
the accrual basis of accounting, as are the proprietary and fiduciary fund financial statements. Revenues are
recorded when earned and expenses are recorded when a liability is incurred, regardless of the timing of related
cash flows. Property taxes are recognized as revenues in the year for which they are levied. Grants and similar
items are recognized as revenue as soon as all eligibility requirements imposed by the provider have been met.
Governmental fund financial statements are reported using the current financial resources measurement focus
and the modified accrual basis of accounting. Revenues are recognized as soon as they are both measurable and
available. Revenues are considered to be available when they are collectible within the current period or soon
enough thereafter to pay liabilities of the current period. For this purpose, the City considers revenues to be
available if they are collected within 60 days of the end of the current fiscal period. Expenditures generally are
recorded when a liability is incurred, as under accrual accounting. However, debt service expenditures, as well
as expenditures related to compensated absences and claims and judgments, are recorded only when payment is
due.
-25-
CITY OF ALBERTVILLE, MINNESOTA
NOTES TO THE FINANCIAL STATEMENTS
DECEMBER 31, 2007
Note 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES -CONTINUED
Property taxes, franchise taxes, licenses and interest associated with the current fiscal period are all considered
to be susceptible to accrual and so have been recognized as revenues of the current fiscal period. Only the
portion of special assessments receivable due within the current fiscal period is considered to be susceptible to
accrual as revenue of the current period. All other revenue items are considered to be measurable and available
only when cash is received by the City.
Revenue resulting from exchange transactions, in which each party gives and receives essentially equal value, is
recorded on the accrual basis when the exchange takes place. On a modified accrual basis, revenue is recorded
in the year in which the resources are measurable and become available.
Non-exchange transactions, in which the City receives value without directly giving equal value in return,
include property taxes, grants, entitlement and donations. On an accrual basis, revenue from property taxes is
recognized in the year for which the tax is levied. Revenue from grants, entitlements and donations is
recognized in the year in which all eligibility requirements have been satisfied. Eligibility requirements include
timing requirements, which specify the year when the resources are required to be used or the year when use is
first permitted, matching requirements, in which the City must provide local resources to be used for a specified
purpose, and expenditure requirements, in which the resources are provided to the City on a reimbursement
basis. On a modified accrual basis, revenue from non-exchange transactions must also be available before it can
be recognized.
Deferred revenue arises when assets are recognized before revenue recognition criteria have been satisfied.
Grants and entitlements received before eligibility requirements are met are also recorded as deferred revenue.
On the modified accrual basis, receivables that will not be collected within the available period have also been
reported as deferred revenue.
The preparation of financial statements in conformity with accounting principles generally accepted m the
United States of America requires management to make estimates and assumptions that affect certain reported
amounts and disclosures. Accordingly, actual results could differ from those estimates.
The City reports the following major governmental funds:
The General fund is the City's primary operating fund. It accounts for all financial resources of the City,
except those required to be accounted for in another fund.
The Debt Service fund accounts for the accumulation of resources and payment of bond principal and
interest on long-term general obligation debt of governmental funds.
The Sewer Access fund accounts for the accumulation of resources from sewer availability charges
collected by the City.
The Water Access fund accounts for the accumulation of resources from water availability charges
collected by the City.
The Closed Capital Projects fund accounts for the costs associated with replacement of the City's utility
and road systems. It also covers minor costs for project funds closed and completed.
The Prairie Run fund accounts for the accumulation of resources and payments made for construction of
public improvements at the Prairie Run development.
The CSAH 19 and SO`" Street fund accounts for the accumulation of resources and payments made for the
road improvement project in conjunction with Wright County at the intersection of CSAH 19 and 50~'
Street.
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CITY OF ALBERTVILLE, MINNESOTA
NOTES TO THE FINANCIAL STATEMENTS
DECEMBER 31, 2007
Note 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES -CONTINUED
The City reports the following major proprietary funds:
The Sewer fund accounts for the activities of the City's sewage collection utility.
The Water fund accounts for the activities of the City's water utility.
The Storm Water fund accounts for the activities of the City's storm drainage utility.
Additionally, the City reports the following fund types:
Fiduciary funds account for assets held by the City in a trustee capacity or as an agent on behalf of others.
The agency funds are custodial in nature and do not present results of operations or have a measurement
focus. Agency funds are accounted for using the modified accrual basis of accounting. This fund is used
' to account for assets that the City holds for others in an agency capacity.
Private-sector standards of accounting and financial reporting issued prior to December 1, 1989 generally are
followed in both the government-wide and proprietary fund financial statements to the extent that those
standards do not conflict with or contradict guidance of GASB. Governments also have the option of following
subsequent private-sector guidance for their business-type activities and enterprise funds, subject to this same
' limitation. The City has elected not to follow subsequent private-sector guidance.
As a general rule, the effect of interfund activity has been eliminated from government-wide financial
statements. Exceptions to this general rule are charges between the City's water and sewer functions and various
' other functions of the City. Elimination of these charges would distort the direct costs and program revenues
reported for the various functions concerned.
' Amounts reported as program revenues include 1) charges to customers or applicants for goods, services, or
privileges provided, 2) operating grants and contribution, and 3) capital grants and contributions, including
special assessments. Internally dedicated resources are reported as general revenues rather than as program
revenues. Likewise, general revenues include all taxes.
Proprietary funds distinguish operating revenues and expenses from nonoperating items. Operating revenues
and expenses generally result from providing services and producing and delivering goods in connection with a
proprietary fund's principal ongoing operations. The principal operating revenues of the City enterprise funds
are charges to customers for sales and services. Operating expenses for enterprise funds include the cost of sales
and services, administrative expenses and depreciation on capital assets. All revenues and expenses not meeting
this definition are reported as nonoperating revenues and expenses.
When both restricted and unrestricted resources are available for use, it is the City's policy to use restricted
resources first, then unrestricted resources as they are needed.
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Note 1:
CITY OF ALBERTVILLE, MINNESOTA
NOTES TO THE FINANCIAL STATEMENTS
DECEMBER 31, 2007
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES -CONTINUED
D. Assets, Liabilities and Net Assets or Equity
Deposits and Investments
The City's cash and cash equivalents are considered to be cash on hand, demand deposits and short-term
investments with original maturities of three months or less from the date of acquisition.
Cash balances from all funds are pooled and invested, to the extent available, in certificates of deposit and other
authorized investments. Earnings from such investments are allocated on the basis of applicable participation by
each of the funds.
The City may also invest idle funds as authorized by Minnesota statutes, as follows:
1. Direct obligations or obligations guaranteed by the United States or its agencies.
2. Shares of investment companies registered under the Federal Investment Company Act of 1940 and
whose only investments are in securities in (1) above.
3. General obligations of the State of Minnesota or any of its municipalities.
4. Banker's acceptances of Unites States banks eligible for purchase by the Federal Reserve System.
5. Commercial paper issued by United States banks corporations or their Canadian subsidiaries, of highest
quality, and maturing in 270 days or less.
6. Repurchase or reverse repurchase agreements with banks that are members of the Federal Reserve
System with capitalization exceeding $10,000,000, a primary reporting dealer in U.S. government
securities to the Federal Reserve Bank of New York, or certain Minnesota securities broker-dealers.
7. Guaranteed investment contracts (GIC's) issued or guaranteed by United States commercial banks or
domestic branches of foreign banks or United States insurance companies if similar debt obligations of
the issuer or the collateral pledged by the issuer is in the top two rating categories, or in the top three
rating categories for lonb term GIC's issued by Minnesota banks.
Investments for the City are reported at fair value. The Minnesota Municipal Money Market Fund (4M)
investment pool operates in accordance with appropriate state laws and regulations. The reported value of the
pool is the same as the fair value of the pool share.
Restricted Assets
Certain proceeds of the Public Facilities Authority's revenue bonds, as well as certain resources set aside for
their repayment, are classified as restricted assets in the fmancial statements. The funds are maintained in a
separate bank account and their use is limited by the Public Facilities Authority Loan Agreement.
Property Taxes
The Council annually adopts a tax levy in December and certifies it to the County for collection in the following
year. The County is responsible for collecting all property taxes for the City. These taxes attach an enforceable
lien on taxable property within the City on January 1 and are payable by the property owners in two installments.
The taxes are collected by the County Auditor and tax settlements are made to the City during January, June,
and November each year.
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CITY OF ALBERTVILLE, MINNESOTA
NOTES TO THE FINANCIAL STATEMENTS
DECEMBER 31, 2007
Note 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES -CONTINUED
Taxes payable on homestead property, as defined by Minnesota statutes, were partially reduced by a market
value credit aid. The credit is paid to the City by the State in lieu of taxes levied against the homestead
property. The State remits this credit in two equal installments in October and December each year.
Delinquent taxes receivable include the past six years' uncollected taxes. Delinquent taxes have been offset by a
deferred revenue liability for delinquent taxes not received within 60 days after year end in the fund financial
statements.
Accounts Receivable
Accounts receivable include amounts billed for services provided before year end. Unbilled utility enterprise
fund receivables are also included for services provided in 2007. The City annually certifies delinquent utility
accounts to the County for collection in the following year. Therefore, there has been no allowance for doubtful
accounts established.
Special Assessments
Special assessments represent the financing for public improvements paid for by benefiting property owners.
These assessments are recorded as receivables upon certification to the County. Special assessments are
recognized as revenue when they are received in cash or within 60 days after year end. All governmental fund
special assessments receivable are offset by a deferred revenue liability in the fund fmancial statements.
Interfund Receivables and Payables
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Activity between funds that are representative of lending/borrowing arrangements outstanding at the end of the
fiscal year are referred to as either "due to/from other funds" (i.e., the current portion of interfund loans) or
"advances to/from other funds" (i.e., the non-current portion of interfund loans). All other outstanding balances
between funds are reported as "due to/from other funds." Any residual balances outstanding between the
governmental activities and business-type activities are reported in the government-wide financial statements as
"internal balances."
Advances between funds, as reported in the fund fmancial statements, are offset by a fund balance reserve
account in applicable governmental funds to indicate that they are not available for appropriation and are not
expendable available financial resources.
Land Held for Resale
The City acquires properties for redevelopment purposes. These properties are reported at their net realizable
value in the financial statements. Any costs incurred that are above a property's net realizable value are reported
as expenditures of the current period. The balance of land held for resale is offset with a reservation of fund
balance to indicate that it is not available for appropriation.
Prepaid Items
Certain payments to vendors reflect costs applicable to future accounting periods and are recorded as prepaid
items.
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Note 1:
CITY OF ALBERTVILLE, MINNESOTA
NOTES TO THE FINANCIAL STATEMENTS
DECEMBER 31, 2007
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES -CONTINUED
Capital Assets
Capital assets, which include property, plant, equipment and infrastructure assets (e.g., roads, bridges,
sidewallcs, and similar items) are reported in the applicable governmental or business-type activities columns in
the government-wide fmancial statements. Capital assets are defined by the City as assets with an estimated
useful life of more than one year and an initial individual cost of more than the following:
Category Cost
Land $ 10,000
Land Improvements 25,000
Infrastructure 100,000
Buildings 25,000
Building Improvements 25,000
Vehicles 5,000
Other Equipment 5,000
The City reports infrastructure assets on a network and subsystem basis. Accordingly, the amounts spent for the
construction or acquisition of infrastructure assets are capitalized and reported in the government-wide financial
statements regardless of their amount.
In the case of initial capitalization of general infrastructure assets (i.e., those reported by governmental
activities) the City chose to include items dating back to June 30, 1980. The City was able to estimate the
historical cost for the initial reporting of these assets through backtracking (i.e., estimating the current
replacement cost of the infrastructure to be capitalized and using an appropriate price-level index to deflate the
cost to the acquisition year or estimated acquisition year). As the City constructs or acquires capital assets each
period, including infrastructure assets, they are capitalized and reported at historical cost. The reported value
excludes normal maintenance and repairs which are essentially amounts spent in relation to capital assets that do
not increase the capacity or efficiency of the item or extend its useful life beyond the original estimate. In the
case of donations the City values these capital assets at the estimated fair value of the item at the date of its
donation.
Property, plant and equipment will be depreciated using the straight-line method over the following estimated
useful lives:
Useful Lives
Assets in Years
It is the City's policy to permit employees to accumulate earned but unused vacation and sick pay benefits. All
vacation and sick pay is accrued when incurred in the government-wide and proprietary fund financial
statements. A liability for these amounts is reported in governmental funds only if they have matured, for
example, as a result of employee resignations and retirements.
Land improvements
Infrastructure
Buildings
Vehicles
Other Equipment
Compensated Absences
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15 to 50
15 to 40
3 to 15 '
3 to 20
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CITY OF ALBERTVILLE, MINNESOTA
NOTES TO THE FINANCIAL STATEMENTS
DECEMBER 31, 2007
Note 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES -CONTINUED
Long-term Obligations
In the government-wide fmancial statements, and proprietary fund types in the fund financial statements, long-
term debt and other long-term obligations are reported as liabilities in the applicable governmental activities,
business-type activities, or proprietary fund type statement of net assets. Bond premiums and discounts, as well
as issuance costs, are deferred and amortized over the life of the bonds using the straight line method. Bond
issuance costs are reported as deferred charges and amortized over the term of the related debt.
In the fund fmancial statements, governmental fund types recognized bond premiums and discounts, as well as
bond issuance costs, during the current period. The face amount of debt issued is reported as other fmancing
sources. Premiums received on debt issuances are reported as other financing sources while discounts on debt
issuances are reported as other fmancing uses. Issuance costs, whether or not withheld from the actual debt
proceeds received, are reported as debt service expenditures.
Fund Equity
In the fund fmancial statements, governmental funds report reservations of fiznd balance for amounts that are not
available for appropriation or are legally restricted by outside parties for use for a specific purpose.
Designations of fund balance represent tentative management plans that are subject to change.
Net Assets
Net assets represent the difference between assets and liabilities. Net assets are displayed in three components:
a. Invested in capital assets, net of related debt -Consists of capital assets, net of accumulated depreciation
reduced by any outstanding debt attributable to acquire capital assets.
b. Restricted net assets -Consist of net assets restricted when there are limitations imposed on their use
through external restrictions imposed by creditors, grantors, laws or regulations of other governments.
c. Unrestricted net assets -All other net assets that do not meet the definition of "restricted" or "invested in
capital assets, net of related debt".
Comparative Data/Reclassifications
Comparative total data for the prior year have been presented only for individual enterprise funds in the fund
fmancial statements in order to provide an understanding of the changes in the financial position and operations
of these funds. Also, certain amounts presented in the prior year data have been reclassified in order to be
consistent with the current year's presentation.
-31-
CITY OF ALBERTVILLE, MINNESOTA
NOTES TO THE FINANCIAL STATEMENTS
DECEMBER 31, 2007
Note 2: STEWARDSHIP, COMPLIANCE AND ACCOUNTABILITY
A. Budgetary Information
Annual budgets are adopted on a basis consistent with accounting principles generally accepted in the United
States of America for the General and special purpose funds. All annual appropriations lapse at fiscal year end.
The City does not use encumbrance accounting.
In June of each year, all departments of the City submit requests for appropriations to the City Administrator so
that a budget may be prepared. Before September 15~, the proposed budget is presented to the Council for
review. The Council holds public hearings and a fmal budget is prepared and adopted in early December.
The appropriated budget is prepared by fund, function and department. The City's department heads, with the
approval of the City Administrator, may make transfers of appropriations within a department. Transfers of
appropriations between departments require the approval of the Council. The legal level of budgetary control is
the department level. Budgeted amounts are as originally adopted, or as amended by the Council. Budget
amendments were not made in 2007.
B. Deficit Fund Equity
The following funds had deficit fund balances as of December 31, 2007:
Fund Amount
Major funds
Closed Capital Projects $ 131,985
Prairie Run 805,932
CSAH 19 and 50th Street 5,716
Nonmaj or funds
TIF #10, Mold -Tech 5,411
TIF #11, Land of Lake Tile 3,761
City Hall 39,687
52nd Street Industrial Park 18,781
New Ice Sheet 1,348
Phillip Morris Lift Station 116,687
MacIver 380,993
The Closed Capital Projects fund deficit will be eliminated through transfers from other funds. The Prairie Run
fund deficit will be eliminated with future special assessment collections. The CSAH 19 and 50`I' Street fund
deficit will be funded with transfers from the Capital Outlay Reserve fund. The deficit fund balances in
nonmajor funds will be eliminated through operating transfers, sewer access charges and reimbursements from
Independent School District No. 885.
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CITY OF ALBERTVILLE, MINNESOTA
NOTES TO THE FINANCIAL STATEMENTS
DECEMBER 31, 2007
Note 3: DETAILED NOTES ON ALL FUNDS
A. Deposits and Investments
Deposits
Custodial credit risk for deposits and investments is the risk that in the event of a bank failure, the City's
deposits may not be returned or the City will not be able to recover collateral securities in the possession of an
outside party. In accordance with Minnesota statutes and as authorized by the Council, the City maintains
deposits at those depository banks, all of which are members of the Federal Reserve System.
Minnesota statutes require that all City deposits be protected by insurance, surety bond, or collateral. The
market value of collateral pledged must equal 110 percent of the deposits not covered by insurance or bonds
(140 percent in the case of mortgage notes pledged).
Authorized collateral includes the legal investments described below, as well as certain first mortgage notes, and
certain other State or local government obligations. Minnesota statutes require that securities pledged as
collateral be held in safekeeping by the City or in a financial institution other than that furnishing the collateral.
At year end, the City's carrying amount of deposits was $5,789,080 and the bank balance was $6,591,883. Of
the bank balance, $233,111 was covered by federal depository insurance and $6,331,764 was covered by
collateral held by the City's agent in the City's name. The remaining balance of $27,008 was uncollateralized.
Investments
As of December 31, 2007, the City had the following investments that are insured or registered, or securities
held by the City or its agent in the City's name:
Maturities
Investment Type
Minnesota Municipal Money Market
Brokered Money Market
US Government Agency Securities
US Treasury Obligations
Municipal Bonds
Brokered Certificates of Deposit
u
Total
Maturity
Less than one year
One to two years
Two to five years
Fair Less than One to Two to
Value one year two years five years
$ 158,604 $ 158,604 $ - $ -
93,547 93,547 - -
964,031 399,020 264,918 300,093
1,062,878 1,062,878 - -
610,400 135,029 373,816 101,555
3,925,528 3,562,297 283,102 80,129
$ 6,814,988 $ 5,411,375 $ 921,836 $ 481,777
Maximum
r,,.,A~*,,,A„~~
79%
14%
7%
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CITY OF ALBERTVILLE, MINNESOTA
NOTES TO THE FINANCIAL STATEMENTS
DECEMBER 31, 2007
Note 3: DETAILED NOTES ON ALL FUNDS -CONTINUED
U.S. Government Securities
Federal Home Loan Bank
Municipal Bonds
Coon Rapids, MN
St. Cloud, MN
Iowa City, IA
Ramsey, MN
Kirkwood Community College, IA
Cook County School District, IL
(1) Ratings provided by Moody's Investor Services.
Cash and Investments Summary
A reconciliation of cash and investments as shown on the Statement of Net Assets for the City follows:
Carrying amount of deposits $ 5,789,080
Investments 6,814,988
Cash on hand 249
Total $ 12,604,317
Cash and investments
Statement of Net Assets $ 12,441,731
Restricted Cash 77,206
Statement of Fiduciary Net Assets 85,380
Total $ 12,604,317
Interest rate risk. In accordance with its investment policy, the City will attempt to match its investments with
anticipated cash flow requirements. Unless matched to a specific cash flow, the City will not directly invest in
securities maturing more than five (5) years from the date of purchase. Reserve funds and other funds with
longer-term investment horizons maybe invested in securities exceeding five (5} years if the maturities of such
investments are made to coincide as nearly as practicable with the expected use of funds. Extended maturities
may be utilized to take advantage of higher yields; however, no more than thirty (30) percent of the total
investments should extend beyond five (5) years and in no circumstance should any extend beyond ten (10)
years
Concentration of credit risk. In accordance with its investment policy, the investments will be diversified by:
a. Limiting investment to avoid over concentration in securities from a specific issuer or business sector
(excluding U.S. Treasury securities).
b. Investing in securities with varying maturities.
c. Investing a portion of the portfolio in readily available funds to ensure that appropriate liquidity is
maintained in order to meet ongoing obligations.
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Rating (1)
AAA
Rating (1) t
AAA
AA3
AAA
AA3
AA3
AAA
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CITY OF ALBERTVILLE, MINNESOTA
NOTES TO THE FINANCIAL STATEMENTS
DECEMBER 31, 2007
Note 3: DETAILED NOTES ON ALL FUNDS -CONTINUED
B. Due From Other Governments/Deferred Revenue
A summary of all amounts due from other governments as of December 31, 2007 is as follows:
Fund County Federal Total
Governmental activities
General $ 38,064 $ - $ 38,064
Debt Service 3,738 - 3,738
Prairie Run 16,969 - 16,969
Nonmajor 26,932 527,887 554,819
Total governmental activities $ 85,703 $ 527,887 $ 613,590
Business-type activities
Sewer $ 1,404 $ - $ 1,904
Water 1,145 - 1,145
Storm water 1,971 - 1,971
Total business-type activities $ 5,020 $ - $ 5,020
Governmental funds report deferred revenue in connection with receivables for revenues that are not considered
to be available to liquidate liabilities of the current period. Governmental funds also defer revenue recognition
in connection with resources that have been received, but not yet earned. At the end of the current fiscal year,
the various components of deferred revenue and unearned revenue reported in the governmental funds were as
follows:
Fund
General
Delinquent taxes
Deferred special assessments
Other
Debt Service
Delinquent taxes
Deferred special assessments
Sewer Access
Deferred speciaLassessments
Water Access
Deferred special assessments
Prairie Run
Delinquent special assessments
Deferred special assessments
Nonmaj or
Other
Delinquent special assessments
Deferred special assessments
Total
Unavailable Unearned Total
$ 118,764 $ - $ 118,764
50,151 - 50,151
- 1,320 1,320
22,175 - 22,175
2,628,336 - 2,628,336
205,530 - 205,530
30,490 - 30,490
360,577 - 360,577
415,524 - 415,524
15,435 - 15,435
71,827 - 71,827
30,503 - 30,503
$ 3,949,312 $ 1,320 $ 3,950,632
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CITY OF ALBERTVILLE, MINNESOTA
NOTES TO THE FINANCIAL STATEMENTS
DECEMBER 31, 2007
Note 3: DETAILED NOTES ON ALL FUNDS -CONTINUED
C. Capital Assets
Capital asset activity for the year ended December 31, 2007 was as follows:
Restated
Beginning
Governmental activities
Capital assets not being depreciated
Land
Construction in progress
Total capital assets
not being depreciated
Capital assets being depreciated
Buildings
Infrastructure
Land improvements
Vehicles
Machinery and equipment
Total capital assets
being depreciated
Less accumulated depreciation for
Buildings
Infrastructure
Land improvements
Vehicles
Machinery and equipment
Total accumulated
depreciation
Total capital assets
being depreciated, net
Governmental activities
capital assets, net
Increases Decreases
$ 3,732,869 $ 1,027,850 $ - $ 4,760,719
8,509,707 2,753,067 (4,042,674) 7,220,100
12,242,576 3,780,917 (4,042,674) 11,980,819
2,622,939 681,941
20,539,747 3,166,018
518,391 660,985
1,512,248 -
305,425 33,000
25,498,750 4,541,944
- 3,304,880
- 23,705,765
- 1,179,376
- 1,512,248
- 338,425
- 30,040,694
(393,509) (79,372) - (472,881)
(7,561,532) (844,219) - (8,405,751)
(99,119) (64,166) - (168,285)
(621,167) (100,761) - (721,928)
(43,063) (23,712) - .(66,775)
(8,718,390) (1,117,230} - (9,835,620)
16,780,360 3,424,714
- 20,205,074
$ 29,022,936 $ 7,205,631 $ (4,042,674) $ 32,185,893
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Ending
Balance
CITY OF ALBERTVILLE, MINNESOTA
NOTES TO THE FINANCIAL STATEMENTS
DECEMBER 31, 2007
Note 3: DETAILED NOTES ON ALL FUNDS -CONTINUED
Restated
Beginning
Balance Increases
Business-type activities
Capital assets not being depreciated
Ending
Decreases Balance
Land $ 190,269 $ - $ - $ 190,269
Construction in progress - 369,932 - 369,932
Total capital assets not
being depreciated 190,269 369,932 - 560,201
Capital assets being depreciated
Buildings 4,702,684 - - 4,702,684
Infrastructure 9,228,927 - - 9,228,927
Vehicles 91,580 - - 91,580
Machinery and equipment 218,814 - - 218,814
Total capital assets
being depreciated 14,242,005 - - 14,242,005
Less accumulated depreciation for
Buildings (112,718) (117,567) - (230,285)
Infrastructure (1,823,955) (196,091) - (2,020,046)
Vehicles (63,996) (8,124) - (72,120)
Machinery and equipment (108,755) (12,102} - (120,857)
Total accumulated
depreciation (2,109,424} (333,884) - (2,443,308)
Total capital assets
being depreciated, net 12,132,581 (333,884) - 11,798,697
Business-type activities
capital assets, net $ 12,322,850 $ 36,048 $ - $ 12,358,898
Depreciation expense was charged to functions/programs of the City as follows:
Governmental activities
General government $ 544
Public safety 75,800
Public works 950,718
Culture and recreation 90,168
Total depreciation expense -governmental activiti es $ 1,117,230
Business-type activities
Sewer utility $ 299,074
Water utility 29,421
Storm water utility 5,389
Total depreciation expense -b usiness-type activiti es $ 333,884
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CITY OF ALBERTVILLE, MINNESOTA
NOTES TO THE FINANCIAL STATEMENTS
DECEMBER 31, 2007
Note 3: DETAILED NOTES ON ALL FUNDS -CONTINUED
D. Construction Commitments
The City has active construction projects as of December 31, 2007. At year end, the City's commitments with
the contractors are as follows:
Spent Remaining
Project to date Commitment
2004 Prairie Run $ 1,498,451 $ 81,311
City Hall 3,044,958 68,329
Phillip Morris Lift Station 94,955 46,068
CSAH 19 South 1,342,799 157,201
52nd Street Industrial Park 686,307 78,993
Winter Park 106,268 72,379
Total $ 6,773,738 $ 504,281
E. Interfund Receivables, Payables and Transfers
The composition of interfund balances as of December 31, 2007, is as follows:
Receivable Fund Payable Fund
I
0
Amnnnt
Sewer Access Interstate 94 $ 526,820
Sewer Access Prairie Run 820,003
Sewer Access Closed Capital Projects 357,109
Sewer Access TIF #10 Mold-Tech 5,411
Sewer Access TIF # 11 Land of Lake Tile 3,761
Sewer Access City Hall Capital Project 36,594
Sewer Access 52nd Street Industrial Park 9,638
Sewer Access New Ice Sheet 1,348
Sewer Access Phillip Morris Lift Station 109,524
Sewer Access G.O. Tax Increment Bonds, 1996A 81,554
Sewer Access G.O. Improvement Bonds, 2003A 663,934
Total interfund balances $ 2,615,696
The Sewer Access fund borrowed the funds above the amounts shown in order for those funds to eliminate their
deficit cash balances.
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CITY OF ALBERTVILLE, MINNESOTA
NOTES TO THE FINANCIAL STATEMENTS
DECEMBER 31, 2007
Note 3: DETAILED NOTES ON ALL FUNDS -CONTINUED
The composition of interfund transfers as of December 31, 2007 is as follows:
Transfer in
Fund
Transfer out
General
Debt Service
Sewer Access
Water Access
Closed Capital Projects
CSAH 19 and 50th Street
Nonmajor Governmental
Storm Water Enterprise
Total transfers out
Nonmaj or
Debt Governmental
General Service Funds
$ - $ 150,000 $ 847,475
- 81,835 115,688
- 277,270 16,228
- - 189,000
- - 266,694
294 - -
132,914 - 53,866
- - 2,786
$ 133,208 $ 509,105 $ 1,491,737
Transfer in
Fund
Transfer out
General
Debt Service
Sewer Access
Water Access
Closed Capital Projects
CSAH 19 and 50th Street
Nonmajor Governmental
Storm Water Enterprise
Total transfers out
Storm
Sewer Water
Enterprise Enterprise Total
$ - $ - $ 997,475
- - 197,523
259,874 - 553,372
85,416 - 274,416
- - 266,694
- - 294
- 4,635 191,415
- - 2,786
$ 345,290 $ 4,635 $ 2,483,975
Transfers were made for the following purposes:
Debt Service Payments
• The Sewer Access fund transferred $259,874 to the Sewer fund.
• The General fund transferred $150,000 to the City Hall debt service fund.
• The Sewer Access fund transferred $37,975 to the 2003 G.O. Improvement fund.
Close Completed Capital Project Funds
• The Closed Capital Projects fund transferred $282 to the Wright County Shop Property fund.
• The Closed Capital Projects fund transferred $56,576 to the 50~' Street Bike Trail fund.
• The Closed Capital Projects fund transferred $55,567 to the County Road 37 Traffic Light fund.
• The Closed Capital Projects fund transferred $154,269 to the CSAH 19 Widening fund.
Close Completed Debt Service Funds
• The Closed Debt Service fund transferred $1,649 to the 1993C Refunding Bond fund.
• The 1993 G.O. Improvement fund transferred $80,186 to the Closed Debt Service fund.
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Note 3:
CITY OF ALBERTVILLE, MINNESOTA
NOTES TO THE FINANCIAL STATEMENTS
DECEMBER 31, 2007
DETAILED NOTES ON ALL FUNDS -CONTINUED
Provide Cash for funds with Deficit Fund Balances
• The Capital Outlay Reserve fund transferred $1,067 to the Interstate 94 fund.
• The General fund transferred $264,492 to the Interstate 94 fund to fund the deficit cash balance.
To Reclass Previously Collected Special Assessments
• The 1999 G.O. Improvement fund transferred $115,688 to the CSAH 19 and 57~' Street Intersection fund.
• The 70~' Street fund transferred $52,798 to the MacIver fund.
To Correct Capital
• The 52"d Street Industrial Park fund transferred $4,635 to the Storm Water fund.
• The CSAH 19 and 50~' Street fund transferred $294 to the General fund.
• The 52"d Street Industrial Park fund transferred $84,084 to the General fund.
• The CSAH 19 and 57`i' Street fund transferred $2,304 to the General fund.
• The Lachman Avenue fund transferred $46,527 to the General fund.
Other
• The Sewer Access fund transferred $239,295 to the City Hall debt service fund and $16,228 to the City
Hall capital project fund for SAC fees collected.
• The Water Access fund transferred $189,000 to the City Hall capital project fund for WAC fees collected.
• The Water Access fund transferred $85,416 to the Sewer fund to pay for radio read water meters.
• The General fund transferred $129,854 to the Capital Outlay Reserve fund for future capital needs of the
economic development authority.
• The General fund transferred $453,129 to the Capital Outlay Reserve fund for budgeted capital
expenditures that were not used during 2007.
• The Storm Water enterprise fund transferred $2,786 to the Flood Mitigation Project in the process of
converting the fund into the Storm Water fund.
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CITY OF ALBERTVILLE, MINNESOTA
NOTES TO THE FINANCIAL STATEMENTS
DECEMBER 31, 2007
Note 3: DETAILED NOTES ON ALL FUNDS -CONTINUED
F. Long-term Debt
General Obligation Bonds. The City issues general obligation bonds to provide funds for the acquisition and
construction of major capital facilities. General obligation bonds have been issued for both governmental
activities and business-type activities. These bonds are reported in the proprietary funds if they are expected to
be repaid from proprietary fund revenues.
General obligation bonds are direct obligations of the City and pledge the full faith and credit of the City.
General Obligation Tax Increment Bonds
The following bond was issued to finance improvements to the intersection of CSAH 19 and CSAH 37.
Balance
Authorized Interest Issue Maturity at
Description and Issued Rate Date Date Year End
G.O. Tax Increment
Bonds, Series 1996A $ 400,000 4.25 - 5.40 % 11/22/96 02/01/08 $ 30,000
Annual debt service requirements to maturity for general obligation tax increment bonds are as follows:
Year Ending Governmental Activities
December 31, Principal Interest Total
2008 $ 30,000 $ 810 $ 30,810
General Obligation Special Assessment Bonds
The following bonds were issued to finance various improvement projects in the City.
Balance
Authorized Interest Issue Maturity at
Description and Issued Rate Date Date Year End
G.O. Improvement
Bonds, Series 1999A $ 1,760,000 4.10 - 5.20 % 07/29/99 02/01/15 $ 360,000
G.O. Improvement
Bonds, Series 2003 3,235,000 2.00 - 4.15 08/15/03 02!01/19 1,920,000
G.O. Improvement
Bonds, Series 2007A 4,035,000 3.75 - 4.10 08/16/07 02/01/23 4,035,000
Total G.O. Special Assessment Bonds $ 6,315,000
-41-
CITY OF ALBERTVILLE, MINNESOTA
NOTES TO THE FINANCIAL STATEMENTS
DECEMBER 31, 2007
Note 3: DETAILED NOTES ON ALL FUNDS -CONTINUED
Annual debt service requirements to maturity for general obligation special assessment bonds are as follows:
Year Ending Governmental Activities
December 31, Principal Interest Total
2008 $ 510,000 $ 205,658 $ 715,658
2009 520,000 189,458 709,458
2010 175,000 177,935 352,935
2011 180,000 171,064 351,064
2012 275,000 161,968 436,968
2013 - 2017 1,855,000 587,759 2,442,759
2018 - 2022 1,740,000 218,841 1,958,841
2023 260,000 5,330 265,330
Total $ 5,515,000 $ 1,718,013 $ 7,233,013
Year Ending Business-type Activities
December 31, Principal Interest Total
2008 $ - $ 32,035 $ 32,035
2009 - 32,035 32,035
2010 10,000 31,848 41,848
2011 10,000 31,473 41,473
2012 35,000 30,585 65,585
2013 - 2017 295,000 120,725 415,725
2018 - 2022 365,000 55,325 420,325
2023 85,000 1,743 86,743
Total $ 800,000. _$ 335,769 $ 1,135,769
General Obligation Revenue Bonds
The following bonds were issued to fmance capital improvements in the enterprise funds. They will be repaid
from net revenues of the enterprise funds.
Balance
Authorized Interest Issue Maturity at
Description and Issued Rate Date Date Year End
Public Facility Authority,
G.O. Sewer Revenue
Notes, Series 1993 $ 1,454,514 3.32 % 10/19/93 08/20/14 $ 619,358
G.O. Sewer Revenue
Bonds, Series 2000A 2,550,000 4.50 - 5.25 11/20/00 02/01/16 1,000,000
G.O. Sewer Revenue
Bonds, Series 2005 4,000,000 3.15 - 4.25 12/22/05 12/01/25 3,715,000
Total G.O. Revenue Bonds $ 5,334,358
-42-
CITY OF ALBERTVILLE, MINNESOTA
NOTES TO THE FINANCIAL STATEMENTS
DECEMBER 31, 2007
Note 3: DETAILED NOTES ON ALL FUNDS -CONTINUED
Annual debt service requirements to maturity for general obligation revenue bonds are as follows:
Year Ending Business-type Activities
December 31, Principal Interest Total
2008 $ 455,027 $ 208,809 $ 663,836
2009 287,706 194,630 482,336
2010 300,474 184,006 .484,480
2011 318,335 173,543 491,878
2012 331,294 160,475 491,769
2013 - 2017 1,676,522 589,084 2,265,606
2018 - 2022 1,155,000 313,940 1,468,940
2023 - 2025 810,000 69,170 879,170
Total $ 5,334,358 $ 1,893,657 $ 7,228,015
Revenue Bonds
The following bonds were issu ed to fmance buildings for Public Works, City Ha ll and Fire Department.
Balance
Authorized Interest Issue Maturity at
Description and Issued Rate Date Date Year End
Public Facility Authority,
Lease Revenue
Bonds, Series 1999 $ 860,000 5.00 - 5.60 % 07/20/99 02/01/19 $ 645,000
Public Project Lease Revenue
Bonds, Series 2004 2,100,000 3.75 - 4.90 09/09/04 02/01/25 1,995,000
Public Project Lease Revenue
Bonds, Series 2005 3,700,000 3.30 - 4.70 12/22/05 12/01/25 3,445,000
Total Revenue Bonds $ 6,085,000
Annual debt service requirements to maturity for revenue bonds are as follows:
Year Ending Governmental Activities
December 31, Principal Interest Total
2008 $ 250,000 $ 265,399 $ 515,399
2009 265,000 255,469 520,469
2010 270,000 244,985 514,985
2011 280,000 234,024 514,024
2012 290,000 222,524 512,524
2013 - 2017 1,655,000 916,878 2,571,878
2018 - 2022 1,840,000 525,386 2,365,386
2023 -2025 1,235,000 108,325 1,343,325
Total $ 6,085,000 $ 2,772,990 $ 8,857,990
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CITY OF ALBERTVILLE, MINNESOTA
NOTES TO THE FINANCIAL STATEMENTS
DECEMBER 31, 2007
Note 3: DETAILED NOTES ON ALL FUNDS -CONTINUED
Changes in Long-term Liabilities
Long-term liability activity for the year ended December 31, 2007 was as follows:
Beginning Ending Due Within
Balance Increases Decreases Balance One Yeaz
Governmental activities
Bonds payable:
G.O. Tax Increment bonds $ 55,000 $ - $ (25,000) $ 30,000 $ 30,000
G.O. Special
Assessment bonds 2,775,000 3,235,000 (495,000) 5,515,000 510,000
Revenue bonds 6,330,000 - (245,000) 6,085,000 250,000
Total bonds payable 9,160,000 3,235,000 (765,000) 11,630,000 790,000
Compensated absences
payable 26,222 40,462 (27,182) 39,502 31,908
Governmental activity
long-term liabilities $ 9,186,222 $ 3,275,462 $ (792,182) $ 11,669,502 $ 821,908
Business-type activities
Bonds payable
G.O. Revenue bonds $ 5,761,792 $ - $ (427,435) $ 5,334,357 $ 455,027
G.O. Special
Assessment bonds - 800,000 - 800,000 -
Total bonds payable 5,761,792 800,000 (427,435) 6,134,357 455,027
Compensated absences
payable - 14,858 (4,524) 10,334 8,418
Business-type activity
long-term liabilities $ 5,761,792 $ 814,858 $ (431,959) $ 6,144,691 $ 463,445
In the event an employee of the City would retire or resign, in good standing, a portion of the governmental
compensated absences would mature. The portion applicable to that employee would be recorded as a liability
and liquidated through the General fund.
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CITY OF ALBERTVILLE, MINNESOTA
NOTES TO THE FINANCIAL STATEMENTS
DECEMBER 31, 2007
Note 3: DETAILED NOTES ON ALL FUNDS -CONTINUED
G. Tax Increment Financing Districts
The City is the administering authority for the following tax increment fmance districts.
Tax Tax Tax
Increment Increment Increment
District No. 1-7 District No. 1-8 District No. 1-9
Authorizing law M.S. 469 M.S. 469 M.S. 469
Type of district Housing Redevelopment Redevelopment
Year established 1996 1997 1997
Duration of district 25 years 15 years 15 years
Tax capacity
Original $ 275 $ 195 $ 2,458
Current 32,051 12,202 21,902
Captured -retained $ 31,776 $ 12,007 $ 19,444
Tax Tax
Increment Increment
District No. 1-10 District No. 1-11
Authorizing law M.S. 469 M.S. 469
Type of district Redevelopment Redevelopment
Year established 1998 1999
Duration of district 15 years 15 years
Tax capacity
Original $ 710 $ 1,712
Current 13,080 35,490
Captured -retained $ 12,370 $ 33,778
The City's tax increment districts are subject to review by the State of Minnesota Office of the State Auditor
(OSA). Any disallowed claims or misuse of tax increments could become a liability of the applicable fund.
Management has indicated that they are not aware of any instances of noncompliance which would have a
material effect on the fmancial statements.
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CITY OF ALBERTVILLE, MINNESOTA
NOTES TO THE FINANCIAL STATEMENTS
DECEMBER 31, 2007
Note 4: DEFINED BENEFIT PENSION PLANS -STATEWIDE
A. Plan Description
All full-time and certain part-time employees of the City are covered by defined benefit plans administered by
the Public Employees Retirement Association of Minnesota (PERA). PERA administers the Public Employees
Retirement Fund (PEKE), which is acost-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 Minnesota 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 PERA's Coordinated and Basic Plan members. The retiring
member receives the higher of a step-rate benefit accrual formula {Method 1) or a level accrual formula (Method
2). Under Method 1, the annuity accrual rate for a Basic Plan member is 2.2 percent of average salary for each
of the first 10 years of service and 2.7 percent for each remaining year. The annuity accrual rate for a
Coordinated Plan member is 1.2 percent of average salary for each of the first 10 years and 1.7 percent for each
remaining year. Under Method 2, the annuity accrual rate is 2.7 percent of average salary for Basic Plan
members and 1.7 percent for Coordinated Plan members for each year of service. A reduced retirement annuity
is also available to eligible members seeking early retirement.
There are different types of annuities available to members upon retirement. A single life 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 and PEPFF. That report maybe obtained on the Internet at mnpera.org, by writing to
PERA, 60 Empire Drive, Suite 200, St. Paul, Minnesota 55103-1855 or by calling 651-296-7460 or 1-800-652-
9026.
B. Funding Policy
Minnesota statutes, chapter 353 sets the rates for employer and employee contributions. These statutes are
established and amended by the State legislature. The City makes annual contributions to the pension plans
equal to the amount required by Minnesota statutes. PERF Basic Plan members and Coordinated Plan members
were required to contribute 9.10 percent and 5.75 percent, respectively, of their annual covered salary in 2007.
Contribution rates in the Coordinated Plan will increase in 2008 to 6.0 percent. The City is required to
contribute the following percentages of annual covered payroll: 11.78 percent for Basic Plan PERF members,
and 6.25 percent for Coordinated Plan PERF members. Employer contribution rates for the Coordinated Plan
will increase to 6.50 percent, effective January 1, 2008. The City's contributions to the PERF for the years
ending December 31, 2007, 2006 and 2005, were $36,882, $34,470 and $27,219, respectively. The City's
contributions were equal to the contractually required contributions for each year as set by Minnesota statute.
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C
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CITY OF ALBERTVILLE, MINNESOTA
NOTES TO THE FINANCIAL STATEMENTS
DECEMBER 31, 2007
Note 5: DEFINED BENEFIT PENSION PLANS -FIRE RELIEF ASSOCIATION
A. Plan Description
All members of the Albertville Fire Department (the Department) are covered by a defined benefit plan
' administered by the Albertville Firemen's Relief Association (the Association). The plan is a single employer
defined benefit pension plan and is established and administered in accordance with Minnesota statute, chapter
69.
The Association maintains a separate Special fund to accumulate assets to fund the retirement benefits earned by
the Department's membership. Funding for the Association is derived from an insurance premium tax in
accordance with the Volunteer Firefighter's Relief Association Financing Guidelines Act of 1971 (chapter 261
as amended by chapter 509 of Minnesota statutes 1980). Funds are also derived from investment income.
The Association issues a publicly available fmancial report that includes financial statements and required
supplementary information. The report may be obtained by writing to the Albertville Firemen's Relief
Association, 5959 Main Avenue NE, Albertville, Minnesota 55301.
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B. Funding Policy
The financial requirements of the Special fund are determined in accordance with section 69.772 of the
Minnesota statutes, which requires the payment of pension benefits in a lump sum or optionally in annual
installments. The benefits are payable after age 50, 20 years of service, and 10 years of Association membership
or upon death. The City's annual pension cost for the current year and related information for the plan is as
follows:
Annual Pension Cost $ 44,321
Contributions Made
State Aid 44,321
Actuarial Valuation Date 12/31/07
Actuarial Cost Method Entry age normal
Amortization Method Level percentage -open
Remaining Amortization Period
Normal cost 20 years
Prior service cost 10 years
Asset valuation method Market
Actuarial Assumptions
Investment rate of return 5%
Projected salary increases N/A
Inflation rate N/A
Cost of living adjustments None
' -47-
CITY OF ALBERTVILLE, MINNESOTA
NOTES TO THE FINANCIAL STATEMENTS
DECEMBER 31, 2007
Note 5: DEFINED BENEFIT PENSION PLANS -FIRE RELIEF ASSOCIATION -CONTINUED
Three Year Trend Information
Annual Percentage
Year Pension of APC Net Pension
Ending Cost (APC) Contributed Obligation
12/31/07 $ 44,321 100.00 % $ -
12/31 /06 49,376 143.79 -
12/31 /OS 47,310 161.95 -
Required Supplementary Information
Assets in
Excess of Pension
Actuarial Actuarial Actuarial (Unfunded) Benefit
Valuation Value of Accrued Accrued Funded Per Year
Date Assets Liability Liability Rate of Service
12/31/07
12/31/06 $ 385,049 $ 377,896 $ 7,153 100.0 $ 1,500
12/31/05 289,569 333,762 (44,193) 90.0 1,500
* Information not available at time of the audit.
Note 6: JOINT POWERS AGREEMENTS
A. Joint Powers Water Board of Albertville, Hanover and St. Michael
In 1977, the City entered into an agreement with the City of St. Michael and the City of Hanover to construct a
water system under a grant bond arrangement with the Albertville Economic Development Administration
(EDA). Water Revenue bonds were issued in the name of the City of Albertville and purchased by the EDA. The
Joint Powers Board remits the annual bond and interest payment to the City which, in turn, remits the payment
to the EDA.
The Joint Powers Agreement states that in the event the Joint Powers Board Water fund does not generate
sufficient revenue to pay operating costs as well as principal and interest on bonds that the participants agree to
contribute an amount sufficient to fund the deficiency.
JOINT POWERS BOARD
STATEMENT OF NET ASSETS
DECEMBER 31, 2007
Assets
Liabilities
Net assets
Total liabilities and net assets
$ 28,101,490
$ 13,315,578
14,785,912
$ 28,101,490
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-48- '
' CITY OF ALBERTVILLE, MINNESOTA
NOTES TO THE FINANCIAL STATEMENTS
DECEMBER 31, 2007
Note 6: JOINT POWERS AGREEMENTS -CONTINUED
JOINT POWERS BOARD
SUMMARY STATEMENT OF ACTIVITIES
YEAR ENDED DECEMBER 31, 2007
Operating revenues $ 2,307,303
Operating expenses 1,223,209
Operating income 1,084,094
Nonoperating revenues 504,113
Change in net assets 1,588,207
Net assets, January 1 13,197,705
Net assets, December 31 $ 14,785,912
B. St. Michael -Albertville Ice Arena
In 1996-97, the City entered into a Joint Powers Agreement with the City of St. Michael and the Independent
School District No. 885. The agreement was for the construction and maintenance of a qualified ice arena.
During 2006, the City was notified as being selected as Mighty Ducks Grant recipient to help fund the cost of
the ice arena. The arena was constructed with the grant reward and contributions and donations from the City of
Albertville, the City of St. Michael and the Independent School District No. 885.
The agreement states that each participant 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. In the event that the arena cannot generate
sufficient operating revenue, each participant is required to contribute one-third of the projected shortfall.
In addition to the Revenue Note, the City provided a short term loan in the amount of $83,333 from the Storm
Water enterprise fund. The City was never reimbursed for the loan, and eventually cancelled the loan in the
amount of $83,333 as bad debt expense.
ST. MICHAEL -ALBERTVILLE ICE ARENA
' STATEMENT OF NET ASSETS
DECEMBER 31, 2006
Assets
Liabilities
Net assets
Total liabilities and net assets
$ 1,847,321
$ 755,910
1,091,411
$ 1,847,321
-49-
CITY OF ALBERTVILLE, MINNESOTA
NOTES TO THE FINANCIAL STATEMENTS
DECEMBER 31, 2007
Note 6: JOINT POWERS AGREEMENTS -CONTINUED
ST. MICHAEL - ALBERTVILLE ICE ARENA
SUMMARY STATEMENT OF ACTIVITIES
YEAR ENDED DECEMBER 31, 2006
Operating revenues
Operating expenses
Operating income (loss)
Nonoperating revenues
Change in net assets
Net assets, January 1
Net assets, December 31
Note 7: OTHER INFORMATION
A.
B.
Risk Management
$ 210,398
285,455
(75,057)
1,067,874
992,817
98,594
$ 1,091,411
The City is exposed to various risks of loss related to torts; theft of, damage to and destruction of assets; errors
and omissions; injuries to employees; and natural disasters for which the City carries insurance. The City
obtains insurance through participation in the League of Minnesota Cities Insurance Trust (LMCIT), which is a
risk sharing pool with approximately 800 other governmental units. The City pays an annual premium to
LMCIT for its workers compensation and property and casualty insurance. The LMCIT is self sustaining
through member premiums and will reinsure for claims above a prescribed dollar amount for each insurance
event. Settled claims have not exceeded the City's coverage in any of the past three fiscal years.
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Liabilities are reported when it is probable that a loss has occurred and the amount of the loss can be reasonably
estimated. An excess coverage insurance policy covers individual claims in excess of $1,000,000. Liabilities, if
any, include an amount for claims that have been incurred but not reported (IBNRs). The City's management is
not aware of any incurred but not reported claims.
Legal Debt Margin
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In accordance with Minnesota statutes, the City may not incur or be subject to net debt in excess of two percent
of the market value of taxable property within the City. Net debt is payable solely from ad valorem taxes and, ,
therefore, excludes debt financed partially or entirely by special assessments, enterprise fund revenues or tax
increments. The City's applicable debt does not exceed the limit.
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CITY OF ALBERTVILLE, MINNESOTA
NOTES TO THE FINANCIAL STATEMENTS
DECEMBER 31, 2007
Note 7: OTHER INFORMATION -CONTINUED
C. Prior Period Adjustments
Net assets for the governmental and business-type activities were restated for the following reasons:
Adjust beginning governmental infrastructure and
related accumulated depreciation $ 910,731
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Adjust beginning unamortized bond discount between
the governmental and business-type activities. (32,726)
Total governmental activities
prior period adjustments $ 878,005
Adjust beginning machinery and
equipment assets in the water fund $ 74,124
Adjust beginning unamortized bond discount between
the governmental and business-type activities. 32,726
Adjust beginning accounts
payable in the water fund 90,000
Total business-type activities
prior period adjustments $ 196,850
D. Conduit Debt Obligations
Conduit debt obligations are certain limited-obligation revenue bonds or similar debt instruments issued for the
express purpose of providing capital fmancing for a specific third party. The City has issued revenue bonds to
provide financial assistance to private-sector entities for projects deemed to be in the public interest. Although
these bonds bear the name of the City, the City, the State, nor any political subdivision thereof is obligated in
any manner for repayment of the bonds. Accordingly, the bonds are not reported as liabilities in the
accompanying fmancial statements.
As of December 31, 2007, there were two revenue bonds issued. The aggregate principal amount payable at year
end is $3,540,000. The original amount issued was $3,655,000.
E. Contingent Liabilities
For the year ended December 31, 2007, the City is involved as the Defendant in two lawsuits. The lawsuits
utilized the mediation process but were not able to reach resolution. No trial date has been set as of the date of
the Auditor's Report. The outcome and any potential contingent liability is currently unknown.
-51-
CITY OF ALBERTVILLE, MINNESOTA
NONMAJOR GOVERNMENTAL FUNDS
COMBINING BALANCE SHEET
DECEMBER 31, 2007
ASSETS
Cash and temporary investments
Receivables
Special assessments
Delinquent
Deferred
Loans
Due from other governments
TOTAL ASSETS
LIABILITIES AND FUND BALANCES
LIABILITIES
Accounts payable
Contracts payable
Due to other funds
Deferred revenue
TOTAL LIABILITIES
FUND BALANCES
Reserved for
Long term receivable
Unreserved
Designated for capital expenditures
Undesignated
TOTAL FUND BALANCES
TOTAL LIABILITIES AND FUND BALANCES
-52-
Special
203 Total
Revolving Capital Nonmajor
Loan Projects Funds
$ 167,838 $ 2,770,690 $ 2,938,528
- 71,827 71,827
- 30,503 30,503
1S,43S - 1S,43S
- SS4,819 SS4,819
$ 183,273 $ 3,427,839 $ 3,611,112
$ - $ 625,678 $ 625,678
- 189,230 189,230
- 693,096 693,096
1S,43S 102,330 117,765
1S,43S 1,610,334 1,625,769
- lOS,731 lOS,731
- 1,597,012 1,597,012
167,838 114,762 282,600
167,838 1,817,SOS 1,985,343
$ 183,273 $ 3,427,839 $ 3,611,112
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CITY OF ALBERTVILLE, MINNESOTA
NONMAJOR GOVERNMENTAL FUNDS
COMBINING STATEMENT OF REVENUES, EXPENDITURES AND
CHANGES IN FUND BALANCES
FOR THE YEAR ENDED DECEMBER 31, 2007
REVENUES
Tax increments
Intergovernmental
Charges for service
Special assessments
Interest on investments
Miscellaneous
TOTAL REVENUES
EXPENDITURES
Current
Culture and recreation
Economic development
Capital outlay
General government
Public works
Culture and recreation
Economic development
TOTAL EXPENDITURES
EXCESS (DEFICIENCY) OF REVENUES
OVER (UNDER) EXPENDITURES
OTHER FINANCING SOURCES (USES)
Transfers in
Bond issuance
Transfers out
TOTAL OTHER FINANCING
SOURCES (USES)
NET CHANGE IN FUND BALANCES
FUND BALANCES, JANUARY 1
FUND BALANCES, DECEMBER 31
-53-
Special
203 Total
Revolving Capital Nonmajor
Loan Projects Funds
$ - $ 109,895 $ 109,895
- 527,887 527,887
- 6,626 6,626
- 108,278 108,278
5,449 69,428 74,877
7,128 5,000 12,128
12,577 827,114 839,691
- 77,370 77,370
4,510 67,491 72,001
- 173,115 173,115
- 1,200,521 1,200,521
- 8,005 8,005
- 792,858 792,858
4,510 2,319,360 2,323,870
8,067 (1,492,246) (1,484,179)
- 1,491,737 1,491,737
- 1,549,878 1,549,878
- (191,415) (191,415)
- 2,850,200 2,850,200
8,067 1,3 57,954 1,366,021
159,771 459,551 619,322
$ 167,838 $ 1,817,505 $ 1,985,343
CITY OF ALBERTVILLE, MINNESOTA
NONMAJOR CAPITAL PROJECTS FUNDS
COMBINING BALANCE SHEET
DECEMBER 31, 2007
102 201
Capital
Outlay Park
ASSETS
Cash and temporary investments
Receivables
Special assessments
Delinquent
Deferred
Due from other governments
TOTAL ASSETS
LIABILITIES AND FUND BALANCES (DEFICITS)
LIABILITIES
Accounts payable
Contracts payable
Due to other funds
Deferred revenue
TOTAL LIABILITIES
FUND BALANCES (DEFICITS)
Reserved for long term receivable
Unreserved
Designated for capital expenditures
Undesignated
TOTAL FUND BALANCES (DEFICITS)
TOTAL LIABILITIES AND
FUND BALANCES (DEFICITS)
$ 1,597,012 $ 223,083
407 408
TIF #7 TIF #8
Senior Vetsch
Housing Cabinets
$ 21,698 $ 6,097
- - 16,970 -
$ 1,597,012 $ 223,083 $ 38,668 $ 6,097
$ - $ 49,920 $ - $ -
- 5,593 - -
- 55,513 - -
1,597,012 - - -
- 167,570 38,668 6,097
1,597,012 167,570 38,668 6,097
$ 1,597,012 $ 223,083 $ 38,668 $ 6,097
-54-
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CITY OF ALBERTVILLE, MINNESOTA
NONMAJOR CAPITAL PROJECTS FUNDS
COMBINING BALANCE SHEET -CONTINUED
DECEMBER 31, 2007
476 482 487 492
School 52nd Street
Pedestrian City 50th Street Industrial
Bike Trail Hall Bike Trail Park
ASSETS '
Cash and temporary investments $ - $ - $ - $ -
Receivables
Special assessments '
Delinquent - - - -
Deferred - - - -
Due from other governments - - - -
TOTAL ASSETS $ - $ - $ - $ -
LIABILITIES AND FUND BALANCES (DEFICITS)
LIABILITIES
Accounts payable $ - $ 3,093
$ - $
2,211
Contracts payable - - - 6,932
Due to other funds - 36,594
Deferred revenue - - -
- 9,638
-
TOTAL LIABILITIES - 39,687 - 18,781
FUND BALANCES (DEFICITS)
Reserved for long term receivable - - - -
Unreserved
Designated for capital expenditures - - - -
Undesignated - (39,687) - (18,781)
18
781)
TOTAL FUND BALANCES (DEFICITS) - (39,687) - ,
(
TOTAL LIABILITIES AND
FUND BALANCES (DEFICITS) $ - $ - $ - $ -
-56-
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493 495 497 498 499 500
CSAH 19 Wright County Flood
and 57th Shop Mitigation Lachman New
Intersection Property 70th Street Project Avenue Ice Sheet
$ 108,822 $ - $ 284,730 $ - $ 414,017 $ -
- - 35,914 - - -
= = 15,252 = - =
$ 108,822 $ - $ 335,896 $ - $ 414,017 $ -
$ - $ - $ 87,960 $ - $ 7,994 $ -
- - - - 176,705 -
- - - - - 1,348
- - 51,166 - - -
- - 139,126 - 184,699 1,348
108,822 - 196,770 - 229,318 (1,348)
108,822 - 196,770 - 229,318 (1,348)
$ 108,822 $ - $ 335,896 $ - $ 414,017 $ -
-57-
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CITY OF ALBERTVILLE, MINNESOTA
NONMAJOR CAPITAL PROJECTS FUNDS
COMBINING BALANCE SHEET -CONTINUED
DECEMBER 31, 2007
ASSETS
Cash and temporary investments
Receivables
Special assessments
Delinquent
Deferred
Due from other governments
TOTAL ASSETS
LIABILITIES AND FUND BALANCES (DEFICITS)
LIABILITIES
Accounts payable
Contracts payable
Due to other funds
Deferred revenue
TOTAL LIABILITIES
FUND BALANCES (DEFICITS)
Reserved for long term receivable
Unreserved
Designated for capital expenditures
Undesignated
TOTAL FUND BALANCES (DEFICITS)
TOTAL LIABILITIES AND
FUND BALANCES (DEFICITS}
501
Phillip
Morris
- 35,913 71,827
- 15,251 30,503
- - 554,819
$ - $ 136,441 $ 3,427,839
$ 7,163 $ 466,270 $ 625,678
- - 189,230
109,524 - 693,096
116,687 517,434 1,610,334
- - 105,731
- - 1,597,012
(116,687) (380,993) 114,762
(116,687) (380,993) 1,817,505
$ - $ 136,441 $ 3,427,839
502
MacIver Total
- $ 85,277 $ 2,770,690
-58-
CITY OF ALBERTVILLE, NIINNESOTA
NONMAJOR CAPITAL PROJECTS FUNDS
COMBINING SCHEDULE OF REVENUES, EXPENDITURES AND
CHANGES IN FUND BALANCES (DEFICITS)
FOR THE YEAR ENDED DECEMBER 31, 2007
102 201 407 408
Capital TIF #7 TIF #8
Outlay Park Senior Vetsch
Reserve Fund Housing Cabinets
REVENUES
Tax increments $ - $ - $ 33,940 $ 12,825
Intergovernmental - - - -
Charges for services - 5,287 - -
Special assessments - - - -
Interest on investments 33,019 7,913 828 106
Miscellaneous - 5,000 - -
TOTAL REVENUES 33,019 18,200 34,768 12,931
EXPENDITURES
Current
Culture and recreation - 93,460 - -
Economic development - - 28,209 12,076
Capital outlay
General government - - - -
Public works - - - -
Culture and recreation - 6,657 - -
Economic development - - - -
TOTAL EXPENDITURES - 100,117 28,209 12,076
EXCESS (DEFICIENCY) OF REVENUES
OVER (UNDER) EXPENDITURES 33,019 (81,917) 6,559 855
OTHER FINANCING SOURCES (USES)
Transfers in 582,983 - - -
Bond issuance - - - -
Transfers out (1,067) - - -
TOTAL OTHER FINANCING
SOURCES (USES) 581,916 - - -
NET CHANGE IN FUND BALANCES 614,935 (81,917) 6,559 855
FUND BALANCES (DEFICITS), JANUARY 1 982,077 244,487 32,109 5,242
FUND BALANCES (DEFICITS), DECEMBER 31 $ 1,597,012 $ 167,570 $ 38,668 $ 6,097
-59-
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409 410 411 465 467 468
TIF #9 TIF #11 County Road
Barthel TIF #10 Land of Lakes CSAH 19 37
Bus Mold -Tech Tile Widening Traffic Light Interstate 94
$ 19,923 $ 11,182 $ 32,025 $ - $ - -
_ _ _ _ - 527,887
850 - - - - -
20,773 11,182 32,025 - - 527,887
- 11,194 16,012 - - -
_ _ _ - - 792,858
- 11,194 16,012 - - 792,858
20,773 (12) 16,013 - - (264,971)
- - - 154,269 55,567 265,559
- - - 154,269 55,567 265,559
20,773 (12) 16,013 154,269 55,567 588
19,143 (5,399) (19,774) (154,269) (55,567) (588)
$ 39,916 $ (5,411) $ (3,761) $ - $ - $ -
-60-
CITY OF ALBERTVILLE, MINNESOTA
NONMAJOR CAPITAL PROJECTS FUNDS
COMBINING SCHEDULE OF REVENUES, EXPENDITURES AND
CHANGES IN FUND BALANCES (DEFICITS) -CONTINUED
FOR THE YEAR ENDED DECEMBER 31, 2007
476 482 487 492
School 52nd Street
Pedestrian City 50th Street Industrial
REVENUES
Tax increments
Intergovernmental
Charges for services
Special assessments
Interest on investments
Miscellaneous
TOTAL REVENUES
EXPENDITURES
Current
Culture and recreation
Economic development
Capital outlay
General government
Public works
Culture and recreation
Economic development
TOTAL EXPENDITURES
EXCESS (DEFICIENCY) OF REVENUES
OVER (UNDER) EXPENDITURES
OTHER FINANCING SOURCES (USES)
Transfers in
Bond issuance
Transfers out
TOTAL OTHER FINANCING
SOURCES (USES)
NET CHANGE IN FUND BALANCES
FUND BALANCES (DEFICITS), JANUARY 1
FUND BALANCES (DEFICITS), DECEMBER 31
$ - $ - $ - $ -
- 1,339 - -
- 455 - 8,703
- 1,794 - 8,703
(16,090) - - -
- 173,115 - -
- - - 258,791
(16,090) 173,115 - 258,791
16,090 (171,321) - (250,088)
- 205,228 56,576 -
- - - 1,012,042
- - - (88,719)
- 205,228 56,576 923,323
16,090 33,907 56,576 673,235
(16,090) (73,594) (56,576) (692,016)
$ - $ (39,687) $ - $ (18,781)
-61-
493 445 497 498
CSAH 19 Wright County Flood
and 57th Shop Mitigation
Intersection Property 70th Street Project
- - 75,799 -
- - 10,786 -
1,112
- 86,585
499 500
Lachman New
Avenue Ice Sheet
_ $ _
6,768 -
- 6,768
- 88,902 - 268,759 -
- - - - 1,348
- 88,902 - 268,759 1,348
(1,112) - (2,317) - (261,991) (1,348)
115,688 283 - 2,786 - -
- - - - 537,836 -
(2,304) - (52,798) - (46,527) -
113,384 283 (52,798) 2,786 491,309 -
112,272 283 (55,115} 2,786 229,318 (1,348)
(3,450) (283) 251,885 (2,786) - -
$ 108,822 $ - $ 196,770 $ - $ 229,318 $ (1,348)
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CITY OF ALBERTVILLE, MINNESOTA
NONMAJOR CAPITAL PROJECTS FUNDS
COMBINING SCHEDULE OF REVENUES, EXPENDITURES AND
CHANGES IN FUND BALANCES (DEFICITS) -CONTINUED
FOR THE YEAR ENDED DECEMBER 31, 2007
REVENUES
Tax increments
Intergovernmental
Charges for services
Special assessments
Interest on investments
Miscellaneous
TOTAL REVENUES
EXPENDITURES
Current
Culture and recreation
Economic development
Capital outlay
General government
Public works
Culture and recreation
Economic development
TOTAL EXPENDITURES
EXCESS (DEFICIENCY) OF REVENUES
OVER (UNDER) EXPENDITURES
OTHER FINANCING SOURCES (USES)
Transfers in
Bond issuance
Transfers out
TOTAL OTHER FINANCING
SOURCES (USES)
NET CHANGE IN FUND BALANCES
FUND BALANCES (DEFICITS), JANUARY 1
FUND BALANCES (DEFICITS), DECEMBER 31
-63-
501 502
Phillip
Morris
Lift-Station MacIver Total
$ - $ - $ 109,895
- - 527,887
- - 6,626
- 32,479 108,278
- - 69,428
- - 5,000
- 32,479 827,114
- 77,370
- 67,491
- - 173,115
116,687 466,270 1,200,521
- - 8,005
- - 792,858
116,687 466,270 2,319,360
(116,687) (433,791) (1,492,246)
- 52,798 1,491,737
- - 1,549,878
- - (191,415)
- 52,798 2,850,200
(116,687) (380,993) 1,357,954
- - 459,551
$ (116,687) $ (380,993) $ 1,817,505
CITY OF ALBERTVILLE, MINNESOTA
GENERAL FUND
SCHEDULE OF REVENUES, EXPENDITURES AND
CHANGES IN FUND BALANCES -BUDGET AND ACTUAL
FOR THE YEAR ENDED DECEMBER 31, 2007
(With comparative actual amounts for the year ended December 31, 2006)
2007 2006
Variance with
Budgeted Amounts Final Budget -
Actual Positive Actual
Original Final Amounts (Negative) Amounts
REVENUES
Taxes
General property taxes $ 2,009,558 $ 2,009,558 $ 1,861,916 $ (147,642) $ 1,620,927
Licenses and permits
Business 50,200 50,200 91,190 40,990 70,285
Nonbusiness 423,794 423,794 192,097 (231,697) 416,847
Total 473,994 473,994 283,287 (190,707) 487,132
Intergovernmental
State
Property tax credits - - 94,814 94,814 10,815
Other 72,500 72,500 80,001 7,501 97,007
County
Highway aid 10,000 10,000 14,854 4,854 7,706
Total 82,500 82,500 189,669 107,169 115,528
Charges for services
General government 529,351 529,351 495,950 (33,401) 570,360
Public safety 84,944 84,944 84,944 - 73,065
Culture and recreation 2,000 2,000 6,970 4,970 1,847
Total 616,295 616,295 587,864 (28,431) 645,272
Fines and forfeitures 200 200 3,450 3,250 3,702
Interest on investments 75,000 75,000 61,496 (13,504) 180,147
Miscellaneous
Other 10,000 10,000 60,533 50,533 7,421
Contributions and donations - - 17,282 17,282 6,296
Refunds and reimbursements - - 100,986 100,986 165,713
Total 10,000 10,000 178,801 168,801 179,430
TOTAL REVENUES 3,267,547 3,267,547 3,166,483 (101,064) 3,232,138
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CITY OF ALBERTVILLE, MINNESOTA
GENERAL FUND
SCHEDULE OF R EVENUES, EXPENDITU RES AND
CHANGES IN FUND BALANCES -BUDGET AND ACTUAL -CON TINUED
FOR THE YEAR ENDED DECEMBER 31, 2007
(With comparative actual amounts for the year ended December 31, 2006)
2007 2006
Variance with
Budgeted Amounts Final Budget -
Actual Positive Actual
Original Final Amounts (Negative) Amounts
EXPENDITURES
Current
General government
Legislative
Personal services $ 20,894 $ 20,894 $ 20,866 $ 28 $ 15,873
Supplies 1,000 1,000 510 490 462
Other services and charges 17,600 17,600 24,488 (6,888) 24,829
Total 39,494 39,494 45,864 (6,370) 41,164
Administration
Personal services 111,427 111,427 115,970 (4,543) 107,411
Supplies 2,750 2,750 1,747 1,003 2,262
Other services and charges 10,150 10,150 4,277 5,873 4,733
Total 124,327 124,327 121,994 2,333 114,406
City clerk
Personal services 82,127 82,127 85,595 (3,468) 69,960
Supplies 7,300 7,300 6,483 817 6,715
Other services and charges 47,750 47,750 39,611 8,139 37,232
Total 137,177 137,177 131,689 5,488 113,907
Elections and voter registration
Personal services - - - - 340
Supplies - - 59 (59) -
Other services and charges 6,000 6,000 40 5,960 6,221
Total 6,000 6,000 99 5,901 6,561
Treasurer
Personal services 85,092 85,092 87,833 (2,741) 78,026
Supplies 5,250 5,250 5,671 (421) 5,384
Other services and charges 2,200 2,200 1,901 299 1,723
Total 92,542 92,542 95,405 (2,863) 85,133
Assessing
Other services and charges 35,000 35,000 31,041 3,959 31,034
Legal
Other services and charges 32,760 32,760 58,640 (25,880) 67,044
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CITY OF ALBERTVILLE, MINNESOTA
GENERAL FUND
SCHEDULE OF REVENUES, EXPENDITURES AND
CHANGES IN FUND BALANCES -BUDGET AND ACTUAL -CONTINUED
FOR THE YEAR ENDED DECEMBER 31, 2007
(With comparative actual amounts for the year ended December 31, 2006)
2007 2006
Variance with
Budgeted Amounts Final Budget -
Actual Positive Actual
Original Final Amounts (Negative) Amounts
EXPENDITURES -CONTINUED
Current -Continued
General government -continued
Engineering
Other services and charges $ 42,500 $ 42,500 $ 124,561 $ (82,061) $ 283,845
Miscellaneous
Personal services 7,322 7,322 6,832 490 859
Supplies 2,750 2,750 580 2,170 988
Other services and charges 130,603 130,603 232,938 (102,335) 180,041
Total 140,675 140,675 240,350 (99,675) 181,888
Total general government 650,475 650,475 849,643 (199,168) 925,032
Public safety
Police protection
Other services and charges 453,200 453,200 457,710 (4,510) 438,000
Fire protection
Personal services 200,577 200,577 134,030 66,547 142,777
Supplies 11,100 11,100 15,215 (4,115) 10,033
Other services and charges 106,515 106,515 102,411 4,104 78,614
Total 318,192 318,192 251,656 66,536 231,424
Protective inspection
Personal services 191,237 191,237 159,608 31,629 153,129
Supplies 8,075 8,075 5,143 2,932 5,399
Other services and charges 280,579 280,579 245,892 34,687 248,828
Total 479,891 479,891 410,643 69,248 407,356
Animal control
Other services and charges 3,500 3,500 2,979 521 3,266
Total public safety 1,254,783 1,254,783 1,122,988 131,795 1,080,046
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CITY OF ALBERTVILLE, MINNESOTA
GENERAL FU1V~D
SCHEDULE OF REVENUES, EXPENDITURES AND
CHANGES IN FUND BALANCES -BUDGET AND ACTUAL -CONTINUED
FOR THE YEAR ENDED DECEMBER 31, 2007
(With comparative actual amounts for the year ended December 31, 2006)
2007 2006
Variance with
Budgeted Amounts Final Budget -
Actual Positive Actual
Original Final Amounts (Negative) Amounts
EXPENDITURES -CONTINUED
Current -Continued
Public works
Streets
Personal services $ 118,241 $ 118,241 $ 137,143 $ (18,902) $ 142,361
Supplies 217,975 217,975 198,213 19,762 282,784
Other services and charges 87,885 87,885 93,578 (5,693) 51,627
Total 424,101 424,101 428,934 (4,833) 476,772
Street lighting
Other services and charges 55,000 55,000 67,695 (12,695) 61,276
Sanitation
Supplies - - 3,195 (3,195) -
Other services and charges 45,000 45,000 44,528 472 44,528
Total 45,000 45,000 47,723 (2,723) 44,528
Total public works 524,101 524,101 544,352 (20,251) 582,576
Culture and recreation
Parks
Personal services 113,279 113,279 94,245 19,034 75,914
Supplies 9,800 9,800 11,123 (1,323) 7,700
Other services and charges 60,910 60,910 63,769 (2,859) 65,531
Total culture and recreation 183,989 183,989 169,137 14,852 149,145
Economic Development
Supplies 500 500 309 191 -
Other services and charges 9,200 9,200 24,240 (15,040) 4,322
Total economic development 9,700 9,700 24,549 (14,849) 4,322
Total current expenditures 2,623,048 2,623,048 2,710,669 (87,621) 2,741,121
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CITY OF ALBERTVILLE, MINNESOTA
GENERAL FUND
SCHEDULE OF REVENUES, EXPENDITURES AND
CHANGES IN FUND BALANCES -BUDGET AND ACTUAL -CONTINUED
FOR THE YEAR ENDED DECEMBER 31, 2007
(With comparative actual amounts for the year ended December 31, 2006)
2007
Budgeted Amounts
Actual
Original Final Amounts
Variance with
Final Budget -
Positive Actual
(Negative) Amounts
EXPENDITURES -CONTINUED
Capital outlay
General government $ 390,500 $ 390,500 $ 421,132 $ (30,632) $ 10,796
Public safety 91,500 91,500 34,968 56,532 502,545
Public works 40,000 40,000 6,400 33,600 22,895
Culture and recreation 47,500 47,500 15,448 32,052 23,881
Total capital outlay 569,500 569,500 477,948 91,552 560,117
TOTAL EXPENDITURES 3,192,548 3,192,548 3,188,617 3,931 3,301,238
EXCESS (DEFICIENCY) OF REVENUES
OVER (UNDER) EXPENDITURES 74,999 74,999 (22,134) (97,133) (69,100)
OTHER FINANCING SOURCES (USES)
Transfers in - - 133,208 133,208 120,218
Sale of capital assets - - 129,854 129,854 -
Transfers out - - (997,475) (997,475) (612,695)
TOTAL OTHER FINANCING
SOURCES (USES) - - (734,413) (734,413) (492,477)
NET CHANGE IN FUND BALANCES 74,999 74,999 (756,547) (831,546) (561,577)
FUND BALANCES, JANUARY 1 1,549,004 1,549,004 1,549,004 - 2,110,581
FUND BALANCES, DECEMBER 31 $ 1,624,003 $ 1,624,003 $ 792,457 $ (831,546) $ 1,549,004
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CITY OF ALBERTVILLE, MINNESOTA
DEBT SERVICE FUND
COMBINING BALANCE SHEET
DECEMBER 31, 2007
300 322 324 341
Closed 1992A 1993A
Bond G.O. G.O. 1993C
Issues Improvement Improvement Refunding
ASSETS
Cash and temporary investments $ 169,260 $ 14,826 $ - $ -
Restricted cash - - - -
Receivables
Delinquent taxes 3 7 - -
Special assessments
Delinquent - - - -
Deferred - - - -
Due from other governments 3 - - -
Land held for resale - - - -
TOTAL ASSETS $ 169,266 $ 14,833 $ - $ -
LIABILITIES AND FUND BALANCES (DEFICITS)
LIABILITIES
Due to other funds $ - $ - $ - $ -
Deferred revenue 3 7 - -
TOTAL LIABILITIES 3 7 - -
FUND BALANCES (DEFICITS)
Reserved for
Land held for resale - - - -
Unreserved 169,263 14,826 - -
TOTAL FUND BALANCES (DEFICITS) 169,263. 14,826 - -
TOTAL LIABILITIES AND
FUND BALANCES (DEFICITS) $ 169,266 $ 14,833 $ - $ -
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353 354 355 357 358 359
1996A 1999 1999A 2003A 2004
G.O. Lease G.O. G.O. Lease City Hall
Tax Increment Revenue Improvement Improvement Revenue Revenue
$ - $ 10,794 $ 259,461 $ - $ 666,396 $ 109,943
- 77,206 - - - -
676 3,913 2,559 4,907 10,110 -
- - 326 - - -
- - 148,193 330,504 - -
137 340 191 1,015 2,052 -
- - - 2,735,714 - -
$ 813 $ 92,253 $ 410,730 $ 3,072,140 $ 678,558 $ 109,943
$ 81,554 $ - $ - $ 663,934 $ - $
676 3,913 151,078 335,411 10,110
82,230 3,913 151,078 999,345 10,110
- - - 2,735,714 -
(81,417) 88,340 259,652 (662,919) 668,448
(81,417) 88,340 259,652 2,072,795 668,448
109,943
$ 813 $ 92,253 $ 410,730 $ 3,072,140 $ 678,558 $ 109,943
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CITY OF ALBERTVILLE, MINNESOTA
DEBT SERVICE FUND
COMBINING BALANCE SHEET -C ONTINUED
DECEMBER 31, 2007
360 361 362
CSAH 19 Lachman Industrial
2007 2007 2007
G.O. G.O. G.O.
Improvement Improvement Improvement Totals
ASSETS
Cash and temporary investments $ 179,404 $ 3,653 $ 6,871 $ 1,420,608
Restricted cash - - - 77,206
Receivables
Delinquent taxes - - - 22,175
Special assessments
Delinquent - - - 326
Deferred 659,467 373,629 1,116,217 2,628,010
Due from other governments - - - 3,738
Land held for resale - - - 2,735,714
TOTAL ASSETS $ 838,871 $ 377,282 $ 1,123,088 $ 6,887,777
LIABILITIES AND FUND BALANCES (DEFICITS)
LLABILITIES
Due to other funds $ - $ - $ - $ 745,488
Deferred revenue 659,467 373,629 1,116,217 2,650,511
TOTAL LIABILITIES 659,467 373,629 1,116,217 3,395,999
FUND BALANCES (DEFICITS)
Reserved for
Land held for resale - - - 2,735,714
Unreserved 179,404 3,653 6,871 756,064
TOTAL FUND BALANCES (DEFICITS) 179,404 3,653 6,871 3,491,778
TOTAL LIABILITIES AND
FUND BALANCES (DEFICITS) $ 838,871 $ 377,282 $ 1,123,088 $ 6,887,777
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CITY OF ALBERTVILLE, MINNESOTA
DEBT SERVICE FUND
COMBINING SCHEDULES OF REVENUES, EXPENDITURES AND
CHANGES IN FUND BALANCES (DEFICITS)
FOR THE YEAR ENDED DECEMBER 31, 2007
300 322 324 341
Closed 1992A 1993A
Bond G.O. G.O. 1993C
Issues Improvement Improvement Refunding
REVENUES
Property taxes $ 19 $ - $ - $ -
Special assessments - - - -
Miscellaneous - - - -
Interest earnings
TOTAL REVENUES
EXPENDITURES
Debt Service
Principal
Interest and other
TOTAL EXPENDITURES
EXCESS (DEFICIENCY) OF REVENUES
OVER (UNDER) EXPENDITURES
OTHER FINANCING SOURCES (USES)
Transfers in
Bond issuance
Bond discount
Transfers out
2,969 482 2,609
2,969 482 2,609 -
80,186 - - 1,649
(1,649) - (80,186) -
TOTAL OTHER FINANCING
SOURCES (USES) 78,537 - (80,186) 1,649
NET CHANGE IN FUND BALANCE 81,506 482 (77,577) 1,649
FUND BALANCE (DEFICITS), JANUARY 1 87,757 14,344 77,577 (1,649)
FUND BALANCE (DEFICITS), DECEMBER 31 $ 169,263 $ 14,826 $ - $ -
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353
1996A
G.O.
Tax Increment
$ 10,913 $
14,762
25,675
354 355 357 358
1999 1999A 2003A 2004
Lease G.O. G.O. Lease
Revenue Improvement Improvement Revenue
61,859 $ 39,478 $ 77,333 $ 161,075 $
- 92,044 74,766 -
- - 50,000 -
4,162 9,746 - 19,311
66,021 141,268 202,099 180,386
359
City Hall
25,000 40,000 40,000 455,000 75,000 130,000
2,727 38,085 19,557 71,791 88,906 149,352
27,727 78,085 59,557 526,791 163,906 279,352
(2,052) (12,064) 81,711 (324,692) 16,480 (279,352)
- - - 37,975 - 389,295
- - (115,688) - - -
- - (115,688) 37,975 - 389,295
(2,052) (12,064) (33,977) (286,717) 16,480 109,943
(79,365) 100,404 293,629 2,359,512 651,968 -
$ (81,417) $ 88,340 $ 259,652 $ 2,072,795 $ 668,448 $ 109,943
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CITY OF ALBERTVILLE, MINNESOTA
DEBT SERVICE FUND
COMBINING SCHEDULES OF REVENUES, EXPENDITURES AND
CHANGES IN FUND BALANCES (DEFICITS) -CONTINUED
FOR THE YEAR ENDED DECEMBER 31, 2007
360 361 362
CSAH 19 Lachman Industrial
2007 2007 2007
G.O. G.O. G.O.
Improvement Improvement Improvement Totals
REVENUES
Property taxes $ - $ - $ - $ 350,677
Special assessments 168,446 - - 350,018
Miscellaneous - - - 50,000
Interest earnings - - - -
TOTAL REVENUES
EXPENDITURES
Debt Service
Principal
Interest and other
TOTAL EXPENDITURES
EXCESS (DEFICIENCY) OF REVENUES
OVER (UNDER) EXPENDITURES
OTHER FINANCING SOURCES (USES)
Transfers in
Bond issuance
Bond discount
Transfers out
TOTAL OTHER FINANCING
SOURCES (USES)
NET CHANGE IN FUND BALANCE
FUND BALANCE (DEFICITS), JANUARY 1
FUND BALANCE (DEFICITS), DECEMBER 31
171,381 978 1,840 795,708
- - - 765,000
16,048 5,349 10,067 401,882
16,048 5,349 10,067 1,166,882
155,333 (4,371) (8,227) (371,174)
- - - 509,105
36,761 12,165 22,957 71,883
(12,690) (4,141) (7,859) (24,690)
- - - (197,523)
24,071 8,024 15,098 358,775
179,404 3,653 6,871 (12,399)
- - - ~,w4, i / /
$ 179,404 $ 3,653 $ 6,871 $ 3,491,778
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CITY OF ALBERTVILLE, MINNESOTA
COMBINING STATEMENT OF CHANGES IN ASSETS AND LIABILITIES
AGENCY FUNDS
DECEMBER 31, 2007
Albertville Friendly City Days
ASSETS
Cash and temporary investments
Balance
January 1
Balance
Additions Deductions December 31
LIABILITIES
Accounts payable
Landscaping Escrows
ASSETS.
Cash and temporary investments
LIABILITIES
Accounts payable
TOTAL AGENCY FUNDS
ASSET5
Cash and temporary investments
LIABILITIES
Accounts payable
$ 10,191 $ 10,071 $ (5,500) $ 14,762
$ 10,191 $ 10,071 $ (5,500) $ 14,762
$ 76,996 $ 74,859 $ (81,237) $ 70,618
$ 76,996 $ 74,859 $ (81,237) $ 70,618
$ 87,187 $ 84,930 $ (86,737} $ 85,380
$ 87,187 $ 84,930 $ (86,737) $ 85,380
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CITY OF ALBERTVILLE, MINNESOTA
SUMMARY FINANCIAL REPORT
REVENUES AND EXPENDITURES FOR GENERAL OPERATIONS
GOVERNMENTAL FUNDS
YEARS ENDED DECEMBER 31, 2007 AND 2006
r
VENUES
Taxes
Special assessments
Licenses and permits
Intergovernmental
' Charges for services
Fines and forfeitures
Interest on investments
Miscellaneous
' TOTAL REVENUES
Per Capita
' EXPENDITURES
Current
General government
' Public safety
Public works
Culture and recreation
' Economic development
Capital outlay
General government
Public safety
Public works
Culture and recreation
' Economic development
Debt service
Principal
~' Interest and other charges
' TOTAL EXPENDITURES
Per Capita
' Total Long-term Indebtedness
Per Capita
' General Fund Balance -December 31
Per Capita
Percent
Total Increase
2007 2006 (Decrease)
$ 2,322,488 $ 2,055,430 12.99
691,833 1,191,863 (41.95)
283,287 487,132 (41.85)
717,556 167,769 327.70
2,150,160 1,416,203 51.83
3,450 3,702 (6.81)
399,565 367,427 g,75
240,929 733,236 (67.14)
$ 6,809,268 $ 6,422,762 6.02
1,162.78 1,143.86
$ 849,643 $ 925,032 (8.15)
1,122,988 1,080,046 3.98
563,455 582,576 (3.28)
246,507 217,908 13.12
96,550 59,069 63.45
594,247 3,446,014 (82,76)
34,968 502,545 (93.04)
3,295,620 1,295,040 154.48
23,453 150,956 (84.46)
792,858 - 100.00
765,000 725,000 5.52
401,882 392,992 2.26
$ 8,787,171 $ 9,377,178 (6.29)
1,500.54 1,670.02
$ 11,630,000 $ 9,160,000 26.97
1,986.00 1,631.34
$ 792,457 $ 1,549,004 (48.84)
135.32 275.87
' The purpose of this report is to provide a summary of financial information concerning the City of Albertville to interested
citizens. The complete financial statements may be examined at City Hall, 5959 Main Avenue, Albertville, MN 55301.
Questions about this report should be directed to Tina Lannes, Finance Director at (763) 497-3384.
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