2008 CAFR
Comprehensive
Annual Financial Report
For the year ended December 31, 2008
City of Albertville, Minnesota
CITY OF ALBERTVILLE, MINNESOTA
TABLE OF CONTENTS
DECEMBER 31, 2008
I. INTRODUCTORY SECTION
Letter of Transmittal from City Manager and Finance Director
Organization Chart
Elected and Appointed Officials
II. FINANCIAL SECTION
Independent Auditor's Report
Management's Discussion and Analysis
Basic Financial Statements
Government-wide Financial Statements
Statement of Net Assets
Statement of Activities
Fund Financial Statements
Governmental Funds
Balance Sheet
Reconciliation of the Balance Sheet to the Statement of Net Assets
Statement of Revenues, Expenditures and Changes in Fund Balances (Deficits)
Reconciliation of the Statement of Revenues, Expenditures and Changes in Fund Balances
to the Statement of Activities
General Fund
Statement of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual
Proprietary Funds
Statements of Net Assets
Reconciliation of the Proprietary Statements of Net Assets to the Statement of Net Assets
Statements of Revenues, Expenses and Changes in Fund Net Assets
Reconciliation of the Statement of Revenues, Expenses and Changes in Fund Net Assets
to the Statement of Activities
Statements of Cash Flows
Fiduciary Funds
Statement of Fiduciary Net Assets
Notes to the Financial Statements
Combining and Individual Fund Financial Statements and Schedules
Nonmajor Governmental Funds
Combining Balance Sheet
Combining Statement of Revenues, Expenditures and Changes in Fund Balances
Nonmajor Capital Projects Funds
Combining Balance Sheet
Combining Schedule of Revenues, Expenditures and Changes in Fund Balances (Deficits)
General Fund
Schedule of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual
Debt Service Fund
Combining Balance Sheet
Combining Schedule of Revenues, Expenditures and Changes in Fund Balances (Deficits)
Agency Funds
Combining Statement of Changes in Assets and Liabilities
Summary Financial Report
Revenues and Expenditures for General Operations - Governmental Funds
Page No.
i - iv
v
1
2-3
I -XI
4
5-6
7-8
9
10-11
12
13
14 - 15
16
17 - 18
19
20 - 23
24
25 - 51
52
53
54 - 57
58 - 61
62 - 66
67 - 69
70 - 72
73
74
CITY OF ALBERTVILLE, MINNESOTA
TABLE OF CONTENTS - CONTINUED
DECEMBER 31,2008
III. STATISTICAL SECTION (UNAUDITED)
Net Assets by Component
Changes in Net Assets
Fund Balances of Governmental Funds
Changes in Fund Balances of Governmental Funds
Tax Capacity, Market Value and Estimated Actual Value of Taxable Property
Property Tax Capacity Rates - Direct and Overlapping Governments
Principal Taxpayers
Property Tax Levies and Collections
Ratio of Net Bonded Debt to Assessed Value and Net Bonded Debt Per Capita
Ratios of General Bonded Debt Outstanding
Computation of Direct and Overlapping Debt
Legal Debt Margin Information
Pledged-Revenue Coverage
Demographic and Economic Statistics
Principal Employers
Full. Time Equivalent City Government Employees by Function
Operating Indicators by Function
Capital Asset Statistics by Function
Table Page No.
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
75 - 76
77 - 80
81 - 82
83 - 84
85 - 86
87
88 - 89
90
91
92
93
94 - 95
96 - 97
98
99
100
101
102
~
N~~..:~tlL€ 5959 Main Avenue NE. P. O. Box 9. Albertville, MN 55301.763-497-3384. Fax 763-497-3210
April 6, 2009
Honorable Mayor and Members of the City Council
City of Albertville, Minnesota
Minnesota statutes require all cities to issue an annual report on its financial position and activity
prepared in accordance with generally accepted accounting principles (GAAP), and audited in
accordance with generally accepted auditing standards by a firm of licensed certified public
accountants, or the Office of the State Auditor. Pursuant to that requirement, we hereby issue the
comprehensive annual financial report of the City of Albertville for the fiscal year ended
December 31, 2008.
This report consists of management's representations concerning the finances of the City of
. Albertville. Management assumes. full responsibility for the completeness and reliability of the
information contained in this report, based upon a comprehensive framework of internal control
standards that it has established for this purpose. Because the cost of internal control should not
exceed anticipated benefits, the objective is to provide reasonable, rather than absolute
assurance that the financial statements are free on any material misstatements. As
management, we assert that, to the best of our knowledge and belief, this financial report is
complete and reliable in all material respects.
The City of Albertville's financial statements have been audited by Kern, DeWenter, & Viere, Ltd.,
a firm of licensed certified public accountants. The goal of the independent audit was to provide
reasonable assurance that the financial statements of the .City of Albertville for the fiscal year
; ended December 31, 2008, are free of any material misstatement. Kern, DeWenter, & Viere, Ltd.
have issued an unqualified opinion on the City of Albertville's financial statements for the year
ended December 31,2008.
. Management's Discussion and Analysis (MD&A) immediately follows the independent auditor's
report and provides a narrative introduction, overview, and analysis of the basic financial
statements. This letter of transmittal is designed to complement the MD&A. and should be read in
conjunction with it.
Profile of the City of Albertville
Albertville is located in the northeastern portion of Wright County, along Interstate 94 corridor. It
is in the east central portion of Minnesota and is approximately 35 miles northwest of the Twin
Cities. The City covers approximately 4.786 square miles. The City of Albertville has
experienced considerable growth as illustrated in the table below:
Population Percentage
Date Population Increase Increase.
2007 5942 86 1%
2006 5856 241 4%
2005 5615 247 5%
2004 5368 385 8%
2003 4983 466 10%
2002. 4517 520 13%
2001 3997 376 10%
-i-
The City of Albertville operates under the council/administrator form of government. The
governing body, consisting of the Mayor and four council members, elected at large and on a
non-partisan basis. Terms of office for Mayor is two years and four council members term is four
years, with elections held in each even-numbered year: not more than two council members
terms expire in anyone year.
The Mayor and Council appoint a full-time City Administrator, who is responsible for overall
supervision of City operations. The City Council is responsible for, among other things, passing
ordinances, adopting the budget, appointing committees, hiring the City Administrator, other staff
and appointing consultants.
The City provides its residents and businesses with a variety of municipal services including:
Public Safety
-Fire protection
-Animal Control (Contract with City of Monticello and Monticello Animal Control)
-Police protections (Contract with Wright County Sheriff's Department)
Public Works
-Street Maintenance
-Fleet Maintenance
-Water and sewer utilities
-Snow plowing
-Engineering (Contract with Bolton & Menk)
-Storm water
-Public improvements
-Parks Maintenance
Community Development
-Building inspections
-Land planning
-Zoning administration
-Public improvements
General Administration
-Legal (Contract with Couri, Macarthur & Ruppe)
-City Clerk
-Economic development
-Personnel
-Finance
-Administration
The City of Albertville contracts with Wright County Sheriff's Department to provide 24-hour police
protections. Also, see the notes to basic financial statements for information on the Joint Powers
Water Board. (the City's water operations, operated in conjunction with the cities of St. Michael
and Hanover). In addition, the City offers water, sewer and storm drainage (enterprises). The
annual budget serves as the foundation for the City's financial planning and control. Budgets for
the calendar year are adopted annually by the City Council in December.
Economic Condition and Outlook
Over the past seven years the City has experienced significant growth in both residential housing
and commercial construction. However, the rate of new housing construction in the City has
declined significantly beginning in 2006 and this trend continued in 2007 and 2008. The
decrease is due to a significant national and regional housing slowdown.
-ii-
Despite the recent residential slowdown, the City had a fairly good year for commercial
construction in 2008 and there has been considerable interest recently with respect to senior
housing.
Major Initiatives
Industrial Park Expansion: The City of Albertville recently completed a municipal owned
industrial park adding. five new lots. The lots have all the infrastructure installed with
regional stormwater ponding. The lots have been mass graded so businesses can
quickly compete their project.
1-94 Interchange: The City has made significant progress in the last couple of years and
has recently received state and federal approval of the 1-94 interchange layout. In spring
of 2009, the City Council contracted to complete the final design to be shovel ready
should federal funding become available.
Transportation Improvements: The City has competed expansion of CSAH 19 South
from a two lane to a four land divided highway providing improved mobility and safety. It
is the City's priority to complete a similar improvement north of the Albertville Premium
Outlet Mall on CSAH 19 as soon as funds become available.
Stormwater Management Plan: The City is in the process of completing a comprehensive
city-wide stormwater management plan, which will maximize development opportunities
while protecting the environment.
Property Taxes
Net tax capacity is the figure used to calculate the tax rate. Simply put, the property tax levy for
the year divided by the city-wide total net tax capacity equals the tax rate.
Cash Management
The City utilized interest-bearing checking accounts, money market accounts, savings accounts,
and certificates of deposit to maximize interest earnings on all funds. The City of Albertville
subscribes to the "pooled cash" concept of investing, which means that all funds with cash
balances participated in an investment pool. This permits some funds to be overdrawn and
others to show cash balances when, in fact, the City as a whole has cash balance. This pooled
cash concept provides for investing greater amounts of money at more favorable rates. Interest
earnings are then allocated to participating funds.
Risk Management
The City annually reviews and updates insurance coverage for city-owned property and workers'
compensation and liability coverage. The City has coverage through the Minnesota League of
cities Insurance Trust. Periodically, risk assessments are done by the insurer in an attempt to
assist us in minimizing our risk.
Independent Audit
The financial statements were audited by Kern, DeWenter, & Viere, Ltd, Certified Public
Accountants, and their opinion has been included in this report. The scope of the audit included
the basic financial statements of the City for the year ended December 31, 2008. Their audit was
made in accordance with auditing standards generally accepted in the United States of America.
The scope of the audit was sufficient to satisfy state and federal requirements. The auditors'
opinion on the City's financial statements indicates that the auditors' examination has disclosed
-iii-
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Expert advice. When you need it. SM
INDEPENDENT AUDITOR'S REPORT
April 6, 2009
Honorable Mayor and Members
of the City Council
City of Albertville
Albertville, Minnesota
We have audited the accompanying fmancial 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, 2008, 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 2007 financial statements and, in
our report dated April 7, 2008, 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. Those
Standards require that we plan and perform the audit to obtain reasonable assurance about
whether the [mancial 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 [mancial 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, 2008, and the respective changes in financial position and,
where applicable, cash flows thereof, and the respective budgetary comparison for the General
Fund for the year then ended in conformity with U.S. generally accepted accounting principles.
Expert advice. When you need it 8M
Certified Public Accountants
Wealth Management
Payroll Services
Business Valuations
Technology Services
Minneapolis
7100 Northland Circle N
Suite 119
Minneapolis, Minnesota
55428-1500
Phone: 763.537.3011
Fax: 763.537.9682
st. Cloud
220 Park Avenue S.
P.O. Box 1304
St. Cloud, Minnesota
56302
Phone: 320.251.7010
Fax: 320.251.1784
www.kdv.com
877.912.7696
Technology Help Desk:
866.400.6426
2
~DV
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 performed 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.
The information identified in the Table of Contents as the Introductory and Statistical Sections is
presented for purposes of additional analysis and is not a required part of the basic financial
statements of the City. This information has not been subjected to the auditing procedures
applied in the audit of the basic financial statements and, accordingly, we express no opinion on
it.
1~...D~uI~ .1I~, ~ .
KERN, DEWENTER, VIERE, LTD.
Minneapolis, Minnesota
3
Management's Discussion and Analysis
As management of the City of Albertville, Minnesota, (the City), we offer readers of the City's [mancial statements this narrative
overview and analysis of the [mancial activities of the City for the fiscal year ended December 31, 2008.
Financial Highlights
. The assets of the City exceeded its liabilities at the close ofthe most recent fiscal year by $46,922,682 (net assets). Of
this amount, $6,138,704 (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 $582,634. This increase is attributable to increases in operating grants and
contributions, property tax revenues and interest earned on investments.
. As of the close ofthe current fiscal year, the City's governmental funds reported combined ending fund balances of
$10,970,504, a decrease of$318,831 in comparison with the prior year. Approximately 74 percent of this total amount,
$8,144,497, 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 $859,636, or 30 percent of total
General fund 2008 expenditures.
. The City's total debt decreased $1,605,481 or 9 percent during the current fiscal year. The City was able refinance two
of its bonds during the year while prepaying another.
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 [mancial
statements themselves.
-1-
Management Discussion and Analysis - Continued
April 6, 2009
The financial 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 fmancial 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
r'~
!Management's
Discussion and
Analysis
Basic Financial
Statemeuts
Required
Supplemeutary
Information
..............................
.....
..............,.............
....... .................... ..... .........-... .......
.......
!.................................................................................-:
. .
. .
'I
Qovernment-wide
Financial
Statements
Fund
Financial
Statements
Notes to the
Financial
Statements
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. 'J
(
)
Detail
-11-
Management Discussion and Analysis - Continued
April 6, 2009
Figure 2 summarizes the major features of the City's [mancial 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, [Ife such as the water and sewer
and parks system
Required [mancial . 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 a private-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 [mancial
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 [mancial 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
oftheir costs through user fees and charges (business-type activities). The governmental activities ofthe 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 [mancial statements can be found on pages 4 - 6 of this report.
-III-
Management Discussion and Analysis - Continued
April 6, 2009
Fund Financial Statements
Afund 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 govermnents, uses fund accounting to ensure and demonstrate
compliance with finance-related legal requirements. All of the funds ofthe City can be divided into three categories:
govermnental 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 govermnent-wide financial statements. However, unlike the govermnent-wide [mancial statements, govermnental
fund [mancial 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 govermnent's near-term
[mancing requirements.
Because the focus of govermnental funds is narrower than that of the govermnent-wide [mancial statements, it is useful to
compare the information presented for governmental fUnds with similar information presented for governmental activities in the
govermnent-wide [mancial statements. By doing so, readers may better understand the long-term impact by the govermnent's
near-term [mancing decisions. Both the govermnental fund balance sheet and the govermnental 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 36 individual govermnental funds, eleven of which are debt service funds. Information is presented separately
in the govermnental fund balance sheet and in the govermnental fund statement of revenues, expenditures and changes in fund
balances for the General fund, Debt Service, Sewer Access, Water Access, Closed Capital Projects, and Prairie Run funds - all of
which are considered to be major funds. Data from the other govermnental funds are combined into a single, aggregated
presentation. Individual fund data for each of these non-major govermnental 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 govermnental fund [mancial statements can be found on pages 7 - 13 ofthis 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 govermnent-wide financial 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 govermnent-wide [mancial statements, only in more detail. The
proprietary fund [mancial statements provide separate information for each of the enterprise funds.
The basic proprietary fund financial statements can be found on pages 14 - 23 ofthis 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 govermnent-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 [mancial 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 govermnent-wide and
fund [mancial statements. The notes to the [mancial statements can be found on pages 25 - 51 of this report.
-IV-
Management Discussion and Analysis - Continued
April 6, 2009
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 - 74 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 $46,922,682 at the close of the most recent fiscal year.
By far, the largest portion of the City's net assets (60 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.
Summary of Net Assets
Governmental Activities Business-type Activities
Increase Increase
2008 2007 (Decrease) 2008 2007 (Decrease)
$ 9,306,749 $ 10,469,073 $ (1,162,324) $ 10,753,875 $ 11,205,227 $ (451,352)
31,293,143 32,185,893 (892,750) 12,456,068 12,358,898 97,170
40,599,892 42,654,966 (2,055,074) 23,209,943 23,564,125 (354,182)
10,515,858 11,669,502 (1,153,644) 5,695,076 6,144,691 (449,615)
423,770 1,188,099 (764,329) 252,449 364,070 (111,621)
10,939,628 12,857,601 (1,917,973) 5,947,525 6,508,761 (561,236)
Assets
Current and other assets
Capital assets
Total assets
Liabilities
Long-term liabilities outstanding
Other liabilities
T otalliabilities
Net Assets
Invested in capital assets,
net of related debt
Restricted
Unrestricted
21,047,473
6,209,272
2,403,519
20,784,940
7,295,286
1,717,139
262,533
(1,086,014)
686,380
7,262,007
6,265,226
3,735,185
6,894,960
6,289,760
3,870,644
367,047
(24,534)
(135,459)
Total net assets
$ 29,660,264 $ 29,797,365 $ (137,101) $ 17,262,418 $ 17,055,364 $ 207,054
An additional portion of the City's net assets, $12,474,498, represents resources that are subject to external restrictions on how
they may be used. The remaining balance of unrestricted net assets $6,138,704 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 $582,634 during the current fiscal year. The business type activities increased the net assets by
$629,385, and the governmental activities decreased the net assets by $46,751.
-v-
Management Discussion and Analysis - Continued
April 6, 2009
Governmental activities. Governmental activities decreased the City's net assets $46,751. Significant changes from the prior
year are noted below:
. Capital grants and contributions decreased $2,624,930. Special assessment levies for the 52nd Street Industrial Park,
CSAH 19 Improvements and Lachman A venue were certified to the County in 2007. The City did not begin as many
projects in 2008 and therefore comparable assessment levies were not repeated in 2008.
. Expenses increased $615,286 with general government and public works making up most of the increase. Much ofthe
increase in these functions was from depreciation on new assets added during the recent year.
. A number of prior period adjustments were made during 2008. They were made to adjust beginning balances within the
General and the Closed Capital Projects funds.
Changes in Net Assets
Revenues
Program revenues
Charges for services
Operating grants and contributions
Capital grants and contributions
General revenues
Taxes
Property taxes
Tax increment
State aids
Grants and contributions
not restricted to
specific programs
Gain on sale of capital assets
Unrestricted investment earnings
Total revenues
Expenses
General government
Public safety
Public works
Culture and recreation
Economic development
Interest on long-term debt
Sewer
Water
Storm water
Total expenses
Increase in net assets
before transfers
Transfer
Change in net assets
Net assets, January 1
Prior period adjustment
Net assets, December 31
2008
$ 866,280
856,725
342,520
2,603,732
94,855
48,436
15,055
84,088
4,911,691
1,119,820
1,199,463
1,675,926
331,749
153,026
515,558
4,995,542
(83,851 )
37,100
(46,751)
29,797,365
(90,350)
$ 29,660,264
Governmental Activities
2007
$ 867,131
317,112
2,967,450
2,272,532
109,895
94,814
27,003
129,854
194,044
6,979,835
905,429
1,202,529
1,344,124
268,040
235,425
424,709
4,380,256
2,599,579
480,649
3,080,228
25,839,132
878,005
$ 29,797,365
-VI-
Increase
(Decrease )
$ (851)
539,613
(2,624,930)
331,200
(15,040)
(46,378)
(11,948)
(129,854)
(109,956)
(2,068,144)
214,391
(3,066)
331,802
63,709
(82,399)
90,849
615,286
(2,683,430)
(443,549)
(3,126,979)
3,958,233
(968,355)
2008
$ 1,873,441
146,172
489,075
349,779
2,858,467
823,088
1,226,374
142,520
2,191,982
666,485
(37,100)
629,385
17,055,364
(422,331)
$ (137,101) $ 17,262,418
Business-type Activities
2007
$ 1,981,295
4,664
1,906,378
314,190
4,206,527
858,726
1,297,307
75,268
2,231,301
1,975,226
(480,649)
1,494,577
15,363,937
196,850
$ 17,055,364
Increase
(Decrease )
$ (107,854)
141,508
(1,417,303)
35,589
(1,348,060)
(35,638)
(70,933)
67,252
(39,319)
(1,308,741)
443,549
(865,192)
1,691,427
(619,181)
$ 207,054
Management Discussion and Analysis - Continued
April 6, 2009
The following graph depicts various governmental activities and shows the revenue and expenses directly related to those
activities.
$1,800,000
$1,600,000
$1,400,000
$1,200,000
$1,000,000
$800,000
$600,000
$400,000
$200,000
$-
Expenses and Program Revenues - Governmental Activities
General
government
Public safety
Public works
Economic
development
Interest on long-
term debt
Culture and
recrea tion
I · Expenses . Program revenues I
Revenues by Source - Governmental Activities
Grants and
contributions
unrestricted
0.3%
Unrestricted investment
earnings
1.6%
Charges for services
17.6%
State aids
1.0%
Ca pital grants and
contributions
7.2%
Operating grants and
contributions
17.4%
For the most part, increases in expenses closely paralleled inflation and growth in the demand for services.
-VII -
Management Discussion and Analysis - Continued
April 6, 2009
Business-type activities. Business-type activities increased the City's net assets by $629,385, accounting for all of the growth in
the City's net assets. Key elements of this increase are as follows:
. The Sewer utility was able to provide net revenue of $290, 125.
. Unrestricted investment earnings provided $349,779 for the business-type activities.
$1,400,000
$1,200,000
$1,000,000
$800,000
$600,000
$400,000
$200,000
Expenses and Program Revenues - Business-type Activities
$-
Sewer
Water
Storm Water
I · Expenses . Program revenues
Revenues by Source - Business-type Activities
Charges for services
65.5%
Investment earnings
12.3%
Operating grants and
contributions
5.1%
Capita 1 grants and
contributions
17.1%
-VIII -
Management Discussion and Analysis - Continued
April 6, 2009
Financial Analysis ofthe Government's Funds
As noted earlier, the City uses fund accounting to ensure and demonstrate compliance with finance-related legal requirements.
Governmentalfunds: The focus of the City's governmentaljUnds 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 $10,970,504, a
decrease of $318,831 in comparison with the prior year. Approximately 74 percent of this total amount, $8,144,497, constitutes
unreservedfund 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 $90,293.
The General fund is the chief operating fund of the City. At the end of the current year, the fund balance ofthe General fund was
$859,636. The fund balance of the City's General fund increased $77,978 during the current fiscal year. The increase in fund
balance was the result of revenues in excess of expenditures.
The Debt Service fund balance decreased $447,871 from the prior year for an ending fund balance of $3,043,907. The decrease in
fund balance was in accordance with planned cash flows within the fund.
The Sewer Access fund has a total fund balance of $5,023,384, which was an increase of $468,307 from the prior year. The fund
had very limited expenditures during the year. Revenue from interest and charges for services contributed to the majority of the
increase in fund balance. This fund accumulates resources necessary for future expansion ofthe City's sewer utility.
The Water Access fund showed a decrease of fund balance of $256,821. The ending fund balance was $1,241,842. The primary
cause for the decrease was transfers to other funds.
The Closed Capital Projects fund has an ending fund balance of $90,293. The entire fund balance is reserved for long-term
receivables. An annual transfer from the General fund was the primary reason for the increase in fund balance.
The Prairie Run fund has a deficit fund balance of $707,728, which was an increase of $98,204 from the prior year. The increase
was attributable to collection of special assessments.
Proprietary funds: The City's proprietary funds provide the same type of information found in the government-wide fmancial
statements, but in more detail.
Unrestricted net assets ofthe enterprise funds at the end of the year amounted to $3,688,853. The total growth in net assets for
the funds was $425,276. Other factors concerning the fmances of these funds have already been addressed in the discussion of
the City's business-type activities.
-IX-
Management Discussion and Analysis - Continued
April 6, 2009
General fund Budgetary Highlights
The City's General fund budget was not amended during the year. Both revenues and expenditures provided positive budget
variances. Revenues exceeded expenditures by $450,730; however the General fund transferred $372,752 to other funds, which
provided for an increase of fund balance of $77,978. Some of the significant variances provided by revenues and expenditures are
briefly summarized as follows:
. Current expenditures were over budget $149,314. Significant variances within current expenditures were general
government and public safety. The general government function was over budget by $177,857, due to engineering, legal,
planning and utility expenses. The public safety function was under budget $102,642 due to the fire department, whose
activity is based entirely upon the number of calls for service.
. The City annually budgets within its General fund for certain capital improvements and equipment purchases within its
capital outlay budget. During the year, it was determined that no such expenditures would be incurred and that the
General fund would transfer those budgeted amounts to the Capital Outlay Reserve fund for such future expenditures.
. The City annually transfers funds from the General fund to various other funds in an effort to fund deficit fund balances
on an annual basis. The City also transfers excess capital outlay budgets to the Capital Outlay Reserve fund. These
amounts are difficult to budget and therefore the City does not do so.
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,
2008, amounts to $43,749,211 (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 decrease in
the City's investment in capital assets for the current fiscal year was 2 percent, due to depreciation.
Additional information on the City's capital assets can be found in Note 3C on pages 37 - 38 ofthis report.
Capital Assets Net of Depreciation
Governmental Activities Business-type Activities
Increase Increase
2008 2007 (Decrease) 2008 2007 (Decrease)
Land $ 4,760,719 $ 4,760,719 $ $ 336,381 $ 190,269 $ 146,112
Construction in progress 2,709,438 7,220,100 (4,510,662) 182,311 369,932 (187,621)
Buildings 6,283,689 2,831,999 3,451,690 4,354,832 4,472,399 (117,567)
Infrastructure 15,656,827 15,300,014 356,813 7,462,581 7,208,881 253,700
Land improvements 941,924 1,011,091 (69,167)
Machinery and equipment 247,938 271,650 (23,712) 85,855 97,957 (12,102)
Vehicles 692,608 790,320 (97,712) 34,108 19,460 14,648
Total $ 31,293,143 $ 32,185,893 $ (892,750) $ 12,456,068 $ 12,358,898 $ 97,170
-x-
Management Discussion and Analysis - Continued
April 6, 2009
Long-term debt: At the end of the current fiscal year, the City had total bonded debt outstanding of$16,158,876. This amount
consists of 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 Business-type Activities
Increase Increase
2008 2007 (Decrease) 2008 2007 (Decrease)
General obligation tax
increment bonds $ $ 30,000 $ (30,000) $ $ $
General obligation special
assessment bonds 5,245,000 5,515,000 (270,000) 800,000 800,000
General obligation
revenue bonds 4,883,876 5,334,357 (450,481 )
Revenue bonds 5,230,000 6,085,000 (855,000)
Compensated absences 40,858 39,502 1,356 11,200 10,334 866
Total $ 10,515,858 $ 11,669,502 $ (1,153,644) $ 5,695,076 $ 6,144,691 $ (449,615)
The City's total debt decreased $1,605,481 (9 percent) during the current fiscal year. The City was able to refmance two oftheir
bonds during the year as well as prepaying another, which along with annual debt service payments, provided for the decrease.
Minnesota statutes limit the amount of net general obligation debt a City may issue to 3 percent ofthe 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 3F 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 couple projects planned for 2009, which include the following: County Road 37 Lift Station, CSAH 37
Street and Utility Improvements, and the 1-94 Interchange Design Project. The City is also planning on decommissioning
a water treatment pond.
All of these factors were considered in preparing the City's budget for the 2009 fiscal year.
Requests for Information
This financial report is designed to provide a general overview of the City's fmances 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 fmancial 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, ~INNESOTA
STATEMENT OF NET ASSETS
DECEMBER 31, 2008
Governmental Business-type
Activities Activities Total
ASSETS
Cash and temporary investments $ 4,152,263 $ 7,852,474 $ 12,004,737
Receivables
Interest 126,210 126,210
Delinquent taxes 185,845 185,845
Accounts 142,222 328,733 470,955
Notes 10,122 10,122
Special assessments 3,152,273 435,586 3,587,859
Internal balances (2,028,039) 2,028,039
Due from other governments 600,809 600,809
Unamortized deferred charges 229,330 109,043 338,373
Land held for resale 2,735,714 2,735,714
Capital assets
Land and construction in progress 7,470,157 518,692 7,988,849
Depreciable assets, net of accumulated depreciation 23,822,986 11,937,376 35,760,362
TOTAL ASSETS 40,599,892 23,209,943 63,809,835
LIABILITIES
Accounts payable 202,745 27,346 230,091
Contracts payable 19,989 48,867 68,856
Due to other governments 129,597 129,597
Accrued interest payable 129,176 40,787 169,963
Accrued salaries payable 18,745 5,852 24,597
Unearned revenue 53,115 53,115
Noncurrent liabilities
Due within one year
Compensated absences payable 30,644 8,400 39,044
Bonds payable 760,000 304,070 1,064,070
Due in more than one year
Compensated absences payable 10,214 2,800 13,014
Bonds payable 9,715,000 5,379,806 15,094,806
TOTAL LIABILITIES 10,939,628 5,947,525 16,887,153
NET ASSETS
Invested in capital assets, net of related debt 21,047,473 7,262,007 28,309,480
Restricted for
Sewer and water access charges 6,265,226 6,265,226
Long-term receivable 90,293 90,293
Debt service 2,424,298 2,424,298
Capital assets acquisition 786,130 786,130
Land held for resale 2,735,714 2,735,714
Revolving loans 172,837 172,837
Unrestricted 2,403,519 3,735,185 6,138,704
TOTAL NET ASSETS $ 29,660,264 $ 17,262,418 $ 46,922,682
The notes to the financial statements are an integral part of this statement
-4-
FunctionslPrograms
Governmental activities
General government
Public safety
Public works
Culture and recreation
Economic development
Interest on long-term debt
Total governmental activities
Business-type activities
Sewer utility
Water utility
Storm Water utility
Total business-type activities
Total
CITY OF ALBERTVILLE, MINNESOTA
STATEMENT OF ACTIVITIES
FOR TIIE YEAR ENDED DECEMBER 31, 2008
Program Revenues
Operating Capital Grants
Charges for Grants and and
Expenses Services Contributions Contributions
$ 1,119,820 $ 733,709 $ 171,948 $ 40,855
1,199,463 129,521 72,803
1,675,926 3,050 600,290 301,665
331,749 11,684
153,026
515,558
4,995,542 866,280 856,725 342,520
823,088 651,821 146,172 315,220
1,226,374 1,008,729 172,164
142,520 212,891 1,691
2,191,982 1,873,441 146,172 489,075
$ 7,187,524 $ 2,739,721 $ 1,002,897 $ 831,595
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
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
Activities Activities Total
$ (173,308) $ $ (173,308)
(997,139) (997,139)
(770,921) (770,921 )
(320,065) (320,065)
(153,026) (153,026)
(515,558) (515,558)
(2,930,017) (2,930,017)
290,125 290,125
(45,481) (45,481)
72,062 72,062
316,706 316,706
(2,930,017) 316,706 (2,613,311)
2,082,890 2,082,890
520,842 520,842
94,855 94,855
48,436 48,436
15,055 15,055
84,088 349,779 433,867
37,100 (37,100)
2,883,266 312,679 3,195,945
(46,751) 629,385 582,634
29,797,365 17,055,364 46,852,729
(90,350) (422,331) (512,681)
$ 29,660,264 $ 17,262,418 $ 46,922,682
-6-
CITY OF ALBERTVILLE, MINNESOTA
BALANCE SHEET
GOVERNMENTAL FUNDS
DECEMBER 31, 2008
Capital
Projects
Debt Sewer
General Service Access
ASSETS
Cash and temporary investments $ 775,919 $ 1,288,880 $ 2,826,978
Receivables
Interest 126,210
Delinquent taxes 152,668 33,177
Accounts 51,929
Special assessments 141,804 2,218,277 229,972
Loans
Due from other funds 2,196,406
Due from other governments 50,809 550,000
Land held for resale 2,735,714
TOTAL ASSETS $ 1,299,339 $ 6,826,048 $ 5,253,356
LIABILITIES AND FUND BALANCES (DEFICITS)
LIABILITIES
Accounts payable $ 103,723 $ $
Contracts payable
Due to other funds 986,859
Accrued salaries payable 18,745
Deferred revenue 317,235 2,795,282 229,972
TOTAL LIABILITIES 439,703 3,782,141 229,972
FUND BALANCES (DEFICITS)
Reserved for
Long-term receivable
Land held for resale 2,735,714
Unreserved, designated for
Working capital 859,636
Capital expenditures
Unreserved, undesignated, reported in
Debt service funds 308,193
Special revenue funds
Capital projects funds 5,023,384
TOTAL FUND BALANCES (DEFICITS) 859,636 3,043,907 5,023,384
TOTAL LIABILITIES AND
FUND BALANCES (DEFICITS) $ 1,299,339 $ 6,826,048 $ 5,253,356
The notes to the financial statements are an integral part of this statement.
-7-
Capital Projects
Closed Other Total
Water Capital Prairie Governmental Governmental
Access Projects Run Funds Funds
$ 1,241,842 $ $ $ 2,087,464 $ 8,221,083
126,210
185,845
90,293 142,222
38,253 687,892 104,300 3,420,498
10,122 10,122
2,196,406
600,809
2,735,714
$ 1,280,095 $ 90,293 $ 687,892 $ 2,201,886 $ 17,638,909
$ $ $ 1,676 $ 102,005 $ 207,404
68,856 68,856
712,114 497,433 2,196,406
18,745
38,253 681,830 114,422 4,176,994
38,253 1,395,620 782,716 6,668,405
90,293 90,293
2,735,714
859,636
1,481,589 1,481,589
308,193
172,837 172,837
1,241,842 (707,728) (235,256) 5,322,242
1,241,842 90,293 (707,728) 1,419,170 10,970,504
$ 1,280,095 $ 90,293 $ 687,892 $ 2,201,886 $ 17,638,909
-8-
CITY OF ALBERTVILLE, MINNESOTA
RECONCILIATION OF THE BALANCE SHEET
TO THE STATEMENT OF NET ASSETS
GOVERNMENTAL FUNDS
FOR THE YEAR ENDED DECEMBER 31, 2008
Total fund balances - governmental
$ 10,970,504
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
Less: accumulated depreciation
42,443,509
(11,150,366)
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
Bond principal payable
Less deferred charges net of accumulated amortization
(40,858)
(10,475,000)
229,330
Some receivables are not available soon enough to pay for the current period's expenditures,
and therefore are deferred in the funds.
Special assessments
Taxes
Intergovernmental
Loans
3,146,031
149,501
550,000
10,122
Governmental funds do not report a liability for accrued interest until due and payable.
(129,176)
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
CSAH 37 Utilities
Franklin Sewer Extension
(5,023,384)
(1,241,842)
176,532
36,392
8,969
Total net assets - governmental activities
$ 29,660,264
The notes to the [mancial 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, 2008
Capital
Projects
Debt Sewer
General Service Access
REVENUES
Taxes $ 2,074,327 $ 520,842 $
Licenses and permits 386,564
Intergovernmental 129,294
Charges for services 517,561 199,916
Special assessments 40,855 580,955 82,799
Interest on investments 35,487 8,892 202,692
Miscellaneous 145,470 50,000
TOTAL REVENUES 3,329,558 1,160,689 485,407
EXPENDITURES
Current
General government 889,663
Public safety 1,110,041
Public works 633,256
Culture and recreation 202,342
Economic development 11,890
Capital outlay
General government 4,536
Public safety 13,408
Public works 4,440 17,100
Culture and recreation 9,252
Economic development
Debt service
Principal 1,155,000
Interest and other 490,660
TOTAL EXPENDITURES 2,878,828 1,645,660 17,100
EXCESS (DEFICIENCY) OF REVENUES
OVER (UNDER) EXPENDITURES 450,730 (484,971) 468,307
OTHER FINANCING SOURCES (USES)
Transfers in 37,100
Bonds refunded (560,000)
Issuance of refunding debt 560,000
Transfers out (372,752)
TOTAL OTHER FINANCING SOURCES (USES) (372,752) 37,100
NET CHANGE IN FUND BALANCES 77,978 (447,871) 468,307
FUND BALANCES (DEFICITS), JANUARY 1 792,457 3,491,778 4,555,077
PRIOR PERIOD ADJUSTMENT (10,799)
FUND BALANCES (DEFICITS), DECEMBER 31 $ 859,636 $ 3,043,907 $ 5,023,384
The notes to the fmancial statements are an integral part of this statement.
-10-
Capital Projects
Closed Other Total
Water Capital Prairie Governmental Governmental
Access Projects Run Funds Funds
$ $ $ $ 94,855 $ 2,690,024
386,564
129,294
160,719 290 878,486
10,869 5,944 125,639 14 847,075
45,416 (20,741) 55,546 327,292
150,608 346,078
217,004 5,944 104,898 301,313 5,604,813
133,834 1,023,497
1,110,041
58,055 691,311
71,825 274,167
112,250 124,140
14,467 19,003
13,408
119,244 6,694 503,006 650,484
74,369 83,621
28,886 28,886
1,155,000
490,660
177,299 6,694 938,637 5,664,218
39,705 5,944 98,204 (637,324) (59,405)
295,885 310,172 643,157
(560,000)
560,000
(296,526) (233,305) (902,583)
(296,526) 295,885 76,867 (259,426)
(256,821) 301,829 98,204 (560,457) (318,831)
1,498,663 (131,985) (805,932) 1,979,627 11,379,685
(79,551) (90,350)
$ 1,241,842 $ 90,293 $ (707,728) $ 1,419,170 $ 10,970,504
-11-
CITY OF ALBERTVILLE, MINNESOTA
RECONCILIATION OF THE STATEMENT OF REVENUES, EXPENDITURES AND
CHANGES IN FUND BALANCES
TO THE STATEMENT OF ACTIVITIES
GOVERNMENTAL FUNDS
FOR THE YEAR ENDED DECEMBER 3 1,2008
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
Refunded debt
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 fmancial resources. In the statement of activities, however,
interest expense is recognized as the interest accrues, regardless of when it is due.
Governmental funds report debt issuance premiums and discounts as an other fmancing
source or use at the time of issuance. Premiums and discounts are reported as an
unamortized asset or liability in the government-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
Intergovernmental
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
CSAH 37 Utilities
Franklin Sewer Extension
Change in net assets - governmental activities
The notes to the financial statements are an integral part of this statement.
-12-
$
(318,831)
421,996
(1,314,746)
1,155,000
560,000
(560,000)
28,427
13,065
(66,390)
(1,356)
(410,887)
8,563
550,000
(5,312)
(468,307)
256,821
59,845
36,392
8,969
$
(46,751)
CITY OF ALBERTVILLE, MINNESOTA
STATEMENT OF REVENUES, EXPENDITURES AND
CHANGES IN FUND BALANCES - BUDGET AND ACTUAL
GENERAL FUND
FOR THE YEAR ENDED DECEMBER 31, 2008
General
Variance with
Budgeted Amounts Final Budget -
Actual Over
Original Final Amounts (Under)
REVENUES
Taxes $ 2,144,171 $ 2,144,171 $ 2,074,327 $ (69,844)
Licenses and permits 363,250 363,250 386,564 23,314
Intergovernmental 93,500 93,500 129,294 35,794
Charges for services 568,257 568,257 517,561 (50,696)
Fines and forfeitures 200 200 (200)
Special assessments 40,855 40,855
Interest on investments 120,000 120,000 35,487 (84,513)
Miscellaneous 7,000 7,000 145,470 138,470
TOTAL REVENUES 3,296,378 3,296,378 3,329,558 33,180
EXPENDITURES
Current
General government 711,806 711,806 889,663 177,857
Public safety 1,212,683 1,212,683 1,110,041 (102,642)
Public works 570,645 570,645 633,256 62,611
Culture and recreation 194,244 194,244 202,342 8,098
Economic development 8,500 8,500 11,890 3,390
Capital outlay
General government 408,000 408,000 4,536 (403,464)
Public safety 115,500 115,500 13,408 (102,092)
Public works 36,000 36,000 4,440 (31,560)
Culture and recreation 39,000 39,000 9,252 (29,748)
TOTAL EXPENDITURES 3,296,378 3,296,378 2,878,828 (417,550)
EXCESS OF REVENUES
OVER EXPENDITURES 450,730 450,730
OTHER FINANCING USES
Transfers out (372,752) (372,752)
NET CHANGE IN FUND BALANCES 77,978 77,978
FUND BALANCES, JANUARY 1 792,457 792,457 792,457
PRIOR PERIOD ADJUSTMENT (10,799) (10,799)
FUND BALANCES, DECEMBER 31 $ 792,457 $ 792,457 $ 859,636 $ 67,179
The notes to the financial statements are an integral part of this statement.
-13-
CITY OF ALBERTVILLE, MINNESOTA
STATEMENTS OF NET ASSETS
PROPRlETARY FUNDS
DECEMBER 31, 2008 AND 2007
Business-type Activities - Enterprise Funds
Sewer Water
2008 2007 2008 2007
ASSETS
CURRENT ASSETS
Cash and temporary investments $ 1,478,891 $ 1,515,584 $ 954,901 $ 888,144
Receivables
Accounts 130,695 389,114 169,179 438,920
Delinquent special assessments 11,978 16,187 23,026 22,364
Deferred special assessments, current portion 5,395 5,395 5,395 5,395
Due from other governments 1,904 1,145
TOTAL CURRENT ASSETS 1,626,959 1,928,184 1,152,501 1,355,968
NONCURRENT ASSETS
Deferred special assessments, net of current portion 5,395 5,395
Unamortized deferred charges, net 96,329 110,054
CAPITAL ASSETS, AT COST
Land 190,269 190,269
Buildings 4,702,684 4,702,684
Infrastructure 8,382,640 8,192,884 820,487 820,487
Machinery and equipment 122,951 144,690 74,124 74,124
Vehicles 48,869 48,870 63,732 42,710
Construction in progress
Less: Accumulated depreciation (2,579,220) (2,298,049) (162,787) (132,700)
NET CAPITAL ASSETS 10,868,193 10,981,348 795,556 804,621
TOTAL NONCURRENT ASSETS 10,964,522 11,096,797 795,556 810,016
TOTAL ASSETS 12,591,481 13,024,981 1,948,057 2,165,984
LIABILITIES
CURRENT LIABILITIES
Accounts payable 6,989 191,767 2,313 92,800
Due to other governments 129,597
Accrued interest payable 27,438 40,295
Accrued salaries payable 2,926 1,532 2,926 1,451
Compensated absences payable, current portion 4,200 4,209 4,200 4,209
Bonds payable, current portion 304,070 455,027
TOTAL CURRENT LIABILITIES 345,623 692,830 139,036 98,460
NONCURRENT LIABILITIES
Compensated absences payable 1,400 958 1,400 958
Bonds payable 4,579,806 4,879,330
TOTAL NONCURRENT LIABILITIES 4,581,206 4,880,288 1,400 958
TOTAL LIABILITIES 4,926,829 5,573,118 140,436 99,418
NET ASSETS
Invested in capital assets, net of related debt 6,080,646 5,757,045 795,556 804,621
Unrestricted 1,584,006 1,694,818 1,012,065 1,261,945
TOTAL NET ASSETS $ 7,664,652 $ 7,451,863 $ 1,807,621 $ 2,066,566
The notes to the financial statements are an integral part of this statement.
-14-
Business-type Activities - Enterprise Funds - Continued
Storm Water Totals
2008 2007 2008 2007
$ 1,349,862 $ 1,382,907 $ 3,783,654 $ 3,786,635
28,859 63,214 328,733 891,248
5,554 3,972 40,558 42,523
15,567 12,530 26,357 23,320
1,971 5,020
1,399,842 1,464,594 4,179,302 4,748,746
100,446 130,900 100,446 141,690
12,714 13,611 109,043 123,665
146,112 336,381 190,269
4,702,684 4,702,684
488,672 215,556 9,691,799 9,228,927
197,075 218,814
112,601 91,580
253,245 253,245
(24,776) (12,559) (2,766,783) (2,443,308)
610,008 456,242 12,273,757 12,242,211
723,168 600,753 12,483,246 12,507,566
2,123,010 2,065,347 16,662,548 17,256,312
13,385 7,494 22,687 292,061
129,597
13,349 10,678 40,787 50,973
5,852 2,983
8,400 8,418
304,070 455,027
26,734 18,172 511,393 809,462
2,800 1,916
800,000 800,000 5,379,806 5,679,330
800,000 800,000 5,382,606 5,681,246
826,734 818,172 5,893,999 6,490,708
203,494 216,608 7,079,696 6,778,274
1,092,782 1,030,567 3,688,853 3,987,330
$ 1,296,276 $ 1,247,175 $ 10,768,549 $ 10,765,604
-15-
CITY OF ALBERTVILLE, MINNESOTA
RECONCILIATION OF THE PROPRIETARY STATEMENTS OF NET ASSETS
TO THE STATEMENT OF NET ASSETS
PROPRIETARY FUNDS
FOR THE YEAR ENDED DECEMBER 31,2008
Total net assets - proprietary
Amounts reported for business-type 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
Some receivables are not available soon enough to pay for the current period's expenditures,
and therefore are deferred in the funds.
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
Philip Morris Lift Station
CSAH 37 Utilities
Franklin Sewer Extension
Total net assets - business-type activities
The notes to the [mancial statements are an integral part of this statement.
-16-
$ 10,768,549
182,311
268,225
5,023,384
1,241,842
(176,532)
(36,392)
(8,969)
$ 17,262,418
CITY OF ALBERTVILLE, MINNESOTA
STATEMENTS OF REVENUES, EXPENSES AND
CHANGES IN FUND NET ASSETS
PROPRlETARY FUNDS
FOR THE YEARS ENDED DECEMBER 31, 2008 AND 2007
Business-type Activities - Enterprise Funds
Sewer Water
2008 2007 2008 2007
OPERATING REVENUES
Charges for services $ 650,703 $ 692,890 $ 986,754 $ 1,092,112
OPERATING EXPENSES
Personal services 114,487 91,218 101,471 81,582
Supplies 29,762 24,571 12,777 23,458
Professional services 17,956 82,662 23,056 14,371
Utilities 68,321 67,299 468
Insurance 5,270 5,000 5,270 3,175
Repairs and maintenance 42,288 12,986 16,039 18,415
Remittance to Joint Powers Board 837,093 705,867
Depreciation 302,910 299,074 30,087 29,421
Other charges 39,717 45,569 22,814 22,642
TOTAL OPERATING EXPENSES 620,711 628,379 1,049,075 898,931
OPERATING INCOME (LOSS) 29,992 64,511 (62,321) 193,181
NONOPERATING REVENUES (EXPENSES)
Interest income 39,401 42,608 52,724 27,816
Special assessments 300 668 576
Interest expense and other (202,376) (230,347)
Other income 9,311 4,636 21,975 26,289
TOTAL NONOPERATING
REVENUES (EXPENSES) (153,364) (182,435) 75,275 54,105
INCOME (LOSS) BEFORE
CONTRIBUTIONS AND TRANSFERS (123,372) (117,924) 12,954 247,286
CONTRIBUTIONS AND TRANSFERS
Transfers in 259,426 345,290
Contributed capital 189,756
Transfers out
TOTAL CONTRIBUTIONS AND TRANSFERS 449,182 345,290
CHANGE IN NET ASSETS 325,810 227,366 12,954 247,286
NET ASSETS, JANUARY 1 7,451,863 7,101,771 2,066,566 1,745,156
PRIOR PERIOD ADJUSTMENT (1l3,021) 122,726 (271,899) 74,124
NET ASSETS, DECEMBER 31 $ 7,664,652 $ 7,451,863 $ 1,807,621 $ 2,066,566
The notes to the financial statement are an integral part of this statement.
-17-
Business-type Activities - Enterprise Funds - Continued
Storm Water Totals
2008 2007 2008 2007
$ 212,891 $ 170,004 $ 1,850,348 $ 1,955,006
215,958 172,800
1,000 172 43,539 48,201
86,656 56,242 127,668 153,275
68,789 67,299
10,540 8,175
5,123 2,488 63,450 33,889
837,093 705,867
12,217 5,389 345,214 333,884
1,921 64,452 68,211
106,917 64,291 1,776,703 1,591,601
105,974 105,713 73,645 363,405
14,450 38,245 106,575 108,669
1,691 200,336 2,567 201,004
(35,603) (10,977) (237,979) (241,324)
28 31,286 30,953
(19,462) 227,632 (97,551) 99,302
86,512 333,345 (23,906) 462,707
4,635 259,426 349,925
189,756
(2,786) (2,786)
1,849 449,182 347,139
86,512 335,194 425,276 809,846
1,247,175 911,981 10,765,604 9,758,908
(37,411) (422,331) 196,850
$ 1,296,276 $ 1,247,175 $ 10,768,549 $ 10,765,604
-18-
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, 2008
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 modifiyd accrual
basis of accounting certain revenues cannot be recognized until they are available
to liquidate liabilities of the current period.
Special assessments
Governmental funds report projects in capital projects funds. Some of the capital assets constructed
in the project will be maintained from business-type activity funds. The expenditures are
recorded in the governmental-fund statements, but on the government-wide statements, they are
reported as business-type.
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
CSAH 37 Utilities
Franklin Sewer Extension
Change in net assets ~ business~type activi~ies
The notes to the financial statements are an integral part of this statement.
-19-
$
425,276
255,380
32,205
(189,756)
468,307
(256,821)
(59,845)
(36,392)
(8,969)
$
629,385
CITY OF ALBERTVILLE, MINNESOTA
STATEMENTS OF CASH FLOWS
PROPRIETARY FUNDS
FOR THE YEARS ENDED DECEMBER 31, 2008 AND 2007
Business-type Activities - Enterprise Funds
Sewer Water
2008 2007 2008 2007
CASH FLOWS FROM OPERATING ACTNITIES
Receipts from customers and users $ 614,997 $ 656,246 $ 984,596 $ 943,305
Payments to suppliers (206,989) (239,546) (1,008,004) (751,316)
Payments to employees (112,660) (85,359) (99,563) (75,958)
NET CASH PROVIDED (USED) BY
OPERATING ACTNITIES 295,348 331,341 (122,971) 116,031
CASH FLOWS FROM NONCAPITAL
FINANCING ACTNITIES
Transfers from other funds 259,426 345,290
Proceeds from bonds issued 805,000
Bond issuance costs 2,753
Special assessments 9,904 (26,309) 5,309 (33,154)
Intergovernmental 1,904 (2,976) 130,742 (995)
Miscellaneous 9,311 4,636 21,975 26,289
Transfers to other funds
NET CASH PROVIDED (USED) BY
NONCAPITAL FINANCING ACTNITIES 1,088,298 320,641 158,026 (7,860)
CASH FLOWS FROM CAPITAL AND
RELATED FINANCING ACTNITIES
Acquisition of capital assets (21,022)
Interest paid on bonds (204,259) (226,666)
Principal paid on bonds (1,255,481) (427,435)
NET CASH USED BY
CAPITAL FINANCING ACTNITIES (1,459,740) (654,101) (21,022)
CASH FLOWS FROM INVESTING ACTNITIES
Interest received on investments 39,401 42,608 52,724 27,816
NET INCREASE (DECREASE) IN
CASH AND CASH EQUN ALENTS (36,693) 40,489 66,757 135,987
CASH AND CASH EQUN ALENTS, JANUARY 1 1,515,584 1,475,095 888,144 752,157
CASH AND CASH EQUN ALENTS, DECEMBER 31 $ 1,478,891 $ 1,515,584 $ 954,901 $ 888,144
The notes to the fmancial statement are an integral part of this statement.
-20-
Business-type Activities - Enterprise Funds - Continued
Storm Water Totals
2008 2007 2008 2007
$
209,835
(88,809)
$
159,708
(95,998)
$ 1,809,428
(1,303,802)
(212,223)
$ 1,759,259
(1,086,860)
(161,317)
121,026
63,710
293,403
511,082
4,635 259,426 349,925
800,000 805,000 800,000
(13,910) 2,753 (13,910)
27,526 52,934 42,739 (6,529)
1,971 (408) 134,617 (4,379)
28 31,286 30,953
(2,786) (2,786)
29,497 840,493 1,275,821 1,153,274
(165,983) (253,245) (187,005) (253,245)
(32,035) (236,294) (226,666)
(1,255,481) (427,435)
(198,018) (253,245) (1,678,780) (907,346)
14,450 38,245 106,575 108,669
(33,045) 689,203 (2,981) 865,679
1,382,907 693,704 3,786,635 2,920,956
$ 1,349,862 $ 1,382,907 $ 3,783,654 $ 3,786,635
-21-
CITY OF ALBERTVILLE, MINNESOTA
STATEMENT OF CASH FLOWS - CONTINUED
PROPRIETARY FUNDS
FOR THE YEARS ENDED DECEMBER 31,2008 AND 2007
Business-type Activities - Enterprise Funds - Continued
Sewer Water
2008 2007 2008 2007
RECONCILIATION OF OPERATING INCOME (LOSS) TO
NET CASH PROVIDED (USED) BY OPERATING ACTIVITIES
Operating income (loss) $ 29,992 $ 64,511 $ (62,321) $ 193,181
Adjustments to reconcile operating income (loss) to
net cash provided (used) by operating activities:
Depreciation 302,910 299,074 30,087 29,421
(Increase) decrease in assets:
Accounts receivable (35,706) (36,644) (2,158) (148,807)
Increase (decrease) in liabilities:
Accounts payable (3,675) (1,459) (90,487) 36,612
Accrued salaries payable 1,394 692 1,475 457
Compensated absences payable 433 5,167 433 5,167
NET CASH PROVIDED (USED) BY
OPERATING ACTIVITIES $ 295,348 $ 331,341 $ (122,971) $ 116,031
SCHEDULE OF NONCASH CAPITAL AND
FINANCING ACTIVITIES
Prior period adjustment $ (113,021) $ 122,726 $ (271,899) $ 74,124
Contributed capital 189,756
Amortization of bond discount 10,972 8,135
TOTAL NONCASH CAPITAL
AND FINANCING ACTNITIES $ 87,707 $ 130,861 $ (271,899) $ 74,124
The notes to the financial statements are an integral part of this statement.
-22-
CITY OF ALBERTVILLE, MINNESOTA
NOTES TO THE FINANCIAL STATEMENTS
DECEMBER 31, 2008
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
defmed 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 fmancially
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
fmancial 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 fmancial 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 I) 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 fmancial 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 fmancial statements are reported using the economic resources measurement focus and
the accrual basis of accounting, as are the proprietary and fiduciary fund fmancial 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, 2008
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 in 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 fmancial 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.
-26-
CITY OF ALBERTVILLE, MINNESOTA
NOTES TO THE FINANCIAL STATEMENTS
DECEMBER 31,2008
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 are donated to the City for its annual Friendly City Days celebration. The City
also uses an agency fund to account for landscaping deposits which are given back to the homeowner once
certain landscaping requirements are met for new homes.
Private-sector standards of accounting and [mancial 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 I) 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.
-27-
CITY OF ALBERTVILLE, MINNESOTA
NOTES TO THE FINANCIAL STATEMENTS
DECEMBER 31, 2008
Note 1: 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:
I. 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. Bankers' acceptances of United 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 long-term mc'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.
At December 31, 2008, the City has investments in one issuer (other than investments issued by or explicitly
guaranteed by the U.S. government, mutual funds, external investment pools, and other pooled investments) that
represent 5 percent or more of the City's investments. The City has 6.59 percent of its portfolio invested in the
Federal Home Loan Mortgage Company (FHLMC).
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 I 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.
-28-
CITY OF ALBERTVILLE, MINNESOTA
NOTES TO THE FINANCIAL STATEMENTS
DECEMBER 31,2008
Note 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - CONTINUED
Taxes payable on homestead property, as defmed 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 2008. 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 fmancing 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 financial statements.
Interfund Receivables and Payables
Activity between funds that are representative of lendinglborrowing arrangements outstanding at the end of the
fiscal year are referred to as either "due to/from other funds" (i.e., the current portion ofinterfund 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 financial 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 fmancial 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.
-29-
CITY OF ALBERTVILLE, MINNESOTA
NOTES TO THE FINANCIAL STATEMENTS
DECEMBER 31, 2008
Note 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - CONTINUED
Capital Assets
Capital assets, which include property, plant, equipment and infrastructure assets (e.g., roads, bridges,
sidewalks, and similar items) are reported in the applicable governmental or business-type activities columns in
the government-wide financial 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
Land Improvements
Infrastructure
Buildings
Building Improvements
Vehicles
Other Equipment
$
10,000
25,000
100,000
25,000
25,000
5,000
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:
Assets
Useful Lives
in Years
Land improvements
Infrastructure
Buildings
Vehicles
Other Equipment
5 to 30
15 to 50
15 to 40
3 to 15
3 to 20
Compensated Absences
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.
-30-
CITY OF ALBERTVILLE, MINNESOTA
NOTES TO THE FINANCIAL STATEMENTS
DECEMBER 31, 2008
Note 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - CONTINUED
Long-term Obligations
In the government-wide financial 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 financial 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 financing
sources. Premiums received on debt issuances are reported as other fmancing 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 financial statements, governmental funds report reservations of fund 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 defmition 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
financial statements in order to provide an understanding of the changes in the fmancial 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, 2008
Note 2: STEWARDSHIP, COMPLIANCE AND ACCOUNTABILITY
A. Budgetary Information
An annual budget is adopted on a basis consistent with accounting principles generally accepted in the United
States of America for the General fund. 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 15th, the proposed budget is presented to the Council for
review. The Council holds public hearings and a final 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 2008.
B. Deficit Fund Equity
The following funds had deficit fund balances as of December 31,2008:
Fund
Amount
Major funds
Prairie Run
Nonmajor funds
52nd Street Industrial Park
CSAH 19 and 50th Street
Phillip Morris Lift Station
MacIver
CSAH 37 Utilities
Franklin Sewer Extension
$
707,728
21,611
49,950
176,532
288,757
36,392
8,969
The Prairie Run fund deficit will be eliminated with future special assessment collections. The deficit fund
balances in nonmajor funds will be eliminated with operating transfers, sewer access charges and
reimbursements from local businesses.
-32-
CITY OF ALBERTVILLE, MINNESOTA
NOTES TO THE FINANCIAL STATEMENTS
DECEMBER 31, 2008
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 11 0 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 $4,907,693 and the bank balance was $5,003,600. Of
the bank balance, $547,848 was covered by federal depository insurance and $4,455,752 was covered by
collateral held by the City's agent in the City's name.
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
Investments
Cash on hand
$ 4,907,693
7,234,790
249
Total
$ 12.142.732
Cash and investments
Statement of Net Assets
Statement of Fiduciary Net Assets
$ 12,004,737
137,995
Total
$ 12.142.732
-33-
CITY OF ALBERTVILLE, MINNESOTA
NOTES TO THE FINANCIAL STATEMENTS
DECEMBER 31, 2008
Note 3: DETAILED NOTES ON ALL FUNDS - CONTINUED
Investments
As of December 31, 2008, the City had the following investments:
Maturities
Fair Less than One to More than
Investment Type Value one year two years two years
Minnesota Municipal Money Market $ 262,248 $ 262,248 $ $
Brokered Money Market (45,299) (45,299)
US Government Agency Securities 576,980 576,980
Municipal Bonds 1,010,598 244,768 536,380 229,450
Brokered Certificates of Deposit 5,430,263 3,329,201 1,825,583 275,479
Total $ 7.234.790 $ 3.790.918 $ 2.361.963 $ 1.081.909
Maximum
Maturity Investments
Less than one year 52%
One to two years 33%
More than two years 15%
The City holds $1,251,500 of certificates of deposit through the CDARS program; which the Minnesota Office
of the State Auditor has determined to expose the City to custodial credit risk. The City also has $1,356,584 of
certificates of deposit held by an agent. These certificates are not registered in the City's name nor are they
insured by the agent, which also exposed the City to custodial credit risk.
U.S. Government Securities
Rating (1)
Freddie Mac
Freddie Mac
Fannie Mae
AAA
AAA
AAA
Municipal Bonds
Rating (1 )
Brooklyn Center, MN
Cook County School District, IL
Ramsey, MN
Iowa City, IA
Kingsland School District, MN
Kirkwood Community College, IA
Menasha, WI
Mound, MN
(1) Ratings provided by Moody's Investor Services.
Al
AA3
AA3
AAA
AAA
AA3
A3
AA3
-34-
CITY OF ALBERTVILLE, MINNESOTA
NOTES TO THE FINANCIAL STATEMENTS
DECEMBER 31,2008
Note 3: DETAILED NOTES ON ALL FUNDS - CONTINUED
Custodial credit risk. For investments, this is the risk that in the event of a failure of the counterparty to an
investment transaction (typically a broker-dealer) the City would not be able to recover the value of its
investments or collateral securities that are in the possession of an outside party.
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 may be 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 offunds. 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.
-35-
CITY OF ALBERTVILLE, MINNESOTA
NOTES TO THE FINANCIAL STATEMENTS
DECEMBER 31,2008
Note 3: DETAILED NOTES ON ALL FUNDS - CONTINUED
B. Due From Other GovernmentslDeferred Revenue
A summary of all amounts due from other governments as of December 31,2008 is as follows:
City
Fund Governments County Total
Governmental activities
General $ 50,809 $ $ 50,809
Debt Service 550,000 550,000
Total governmental activities $ 50.809 $ 550.000 $ 600.809
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 Unavailable Unearned Total
General
Delinquent taxes $ 122,496 $ $ 122,496
Delinquent special assessments 18,893 18,893
Deferred special assessments 122,731 122,731
Other 53,115 53,115
Debt Service
Delinquent taxes 27,005 27,005
Delinquent special assessments 28,835 28,835
Deferred special assessments 2,189,442 2,189,442
Other 550,000 550,000
Sewer Access
Deferred special assessments 229,972 229,972
Water Access
Deferred special assessments 38,253 38,253
Prairie Run
Delinquent special assessments 503,430 503,430
Deferred special assessments 178,400 178,400
Nonmajor
Other 10,122 10,122
Delinquent special assessments 104,300 104,300
Total $ 4,123,879 $ 53,115 $ 4,176,994
-36-
CITY OF ALBERTVILLE, MINNESOTA
NOTES TO THE FINANCIAL STATEMENTS
DECEMBER 31, 2008
Note 3: DETAILED NOTES ON ALL FUNDS - CONTINUED
C. Capital Assets
Capital asset activity for the year ended December 31, 2008 was as follows:
Beginning Ending
Balance Increases Decreases Balance
Governmental activities
Capital assets not being depreciated
Land $ 4,760,719 $ $ $ 4,760,719
Construction in progress 7,220,100 421,996 (4,932,658) 2,709,438
Total capital assets
not being depreciated 11,980,819 421,996 (4,932,658) 7,470,157
Capital assets being depreciated
Buildings 3,304,880 3,621,602 6,926,482
Infrastructure 23,705,765 1,311,056 25,016,821
Land improvements 1,179,376 1,179,376
Machinery and equipment 338,425 338,425
Vehic1es 1,512,248 1,512,248
Total capital assets
being depreciated 30,040,694 4,932,658 34,973,352
Less accumulated depreciation for
Buildings (472,881) (169,912) (642,793)
Infrastructure (8,405,751) (954,243) (9,359,994)
Land improvements (168,285) (69,167) (237,452)
Machinery and equipment (66,775) (23,712) (90,487)
Vehic1es (721,928) (97,712) (819,640)
Total accumulated
depreciation (9,835,620) (1,314,746) (11,150,366)
Total capital assets
being depreciated, net 20,205,074 3,617,912 23,822,986
Governmental activities
capital assets, net $ 32,185,893 $ 4,039,908 $ (4,932,658) $ 31.293,143
-37-
CITY OF ALBERTVILLE, MINNESOTA
NOTES TO THE FINANCIAL STATEMENTS
DECEMBER 31, 2008
Note 3: DETAILED NOTES ON ALL FUNDS - CONTINUED
Beginning Ending
Balance Increases Decreases Balance
Business-type activities
Capital assets not being depreciated
Land $ 190,269 $ 146,112 $ $ 336,381
Construction in progress 369,932 258,151 (445,772) 182,311
Total capital assets not
being depreciated 560,20 I 404,263 (445,772) 518,692
Capital assets being depreciated
Buildings 4,702,684 4,702,684
Infrastructure 9,228,927 462,872 9,691,799
Machinery and equipment 218,814 (21,739) 197,075
Vehicles 91,580 21,021 112,601
Total capital assets
being depreciated 14,242,005 483,893 (21,739) 14,704,159
Less accumulated depreciation for
Buildings (230,285) (117,567) (347,852)
Infrastructure (2,020,046) (209,172) (2,229,218)
Machinery and equipment (120,857) (12,102) 21,739 (111,220)
Vehicles (72,120) (6,373) (78,493)
Total accumulated
depreciation (2,443,308) (345,214) 21,739 (2,766,783)
Total capital assets
being depreciated, net 11,798,697 138,679 11,937,376
Business-type activities
capital assets, net $ 12,358,898 $ 542,942 $ (445,772) $ 12,456,068
Depreciation expense was charged to functions/programs ofthe City as follows:
Governmental activities
General government
Public safety
Public works
Culture and recreation
$ 91,084
75,800
1,057,693
90,169
$ 1,314,746
Total depreciation expense - governmental activities
Business-type activities
Sewer utility
Water utility
Storm water utility
Total depreciation expense - business-type activities
$ 302,910
30,087
12,217
$ 345,214
-38-
CITY OF ALBERTVILLE, MINNESOTA
NOTES TO THE FINANCIAL STATEMENTS
DECEMBER 31, 2008
Note 3: DETAILED NOTES ON ALL FUNDS - CONTINUED
D. Construction Commitments
The City has active construction projects as of December 31,2008. At year end, the City's commitments with
the contractors are as follows:
Project
Spent Remaining
to date Commitment
$ 261,136 $ 11,358
154,954 25,851
$ 416,090 $ 37,209
Winter Park
Franklin Sewer Extension
Total
E. Interfund Receivables, Payab1es and Transfers
The composition ofinterfund balances as of December 31, 2008, is as follows:
Receivable Fund
Payable Fund
Amount
Sewer Access
Sewer Access
Sewer Access
Prairie Run
Debt Service
Nonmajor Governmental
$
712,114
986,859
497,433
Total interfund balances
$ 2,1 96.406
The Sewer Access fund borrowed the funds above the amounts shown in order for those funds to eliminate their
deficit cash balances.
-39-
CITY OF ALBERTVILLE, MINNESOTA
NOTES TO THE FINANCIAL STATEMENTS
DECEMBER 31,2008
Note 3: DETAILED NOTES ON ALL FUNDS - CONTINUED
The composition of interfund transfers as of December 31, 2008 is as follows:
Fund
Transfer out
General
Water Access
NonmajorGovernmemal
Transfer out
General
Water Access
Nonmajor Governmental
Transfers were made for the following purposes:
Debt Service Payments
. The Water Access fund transferred $37,100 to the 2003 G.O. Improvement fund.
. The Water Access fund transferred $259,426 to the Sewer enterprise fund.
To Provide Annual Funding
. The General fund transferred $1,385 to the New Ice Sheet fund.
. The General fund transferred $28,886 to the Interstate 94 fund.
. The General fund transferred $46,596 to the Capital Outlay Reserve fund.
. The General fund transferred $295,885 to the Closed Capital Projects fund.
. The Capital Outlay Reserve fund transferred $4,966 to the TIF # 1 0 Mold-Tech fund.
. The Capital Outlay Reserve fund transferred $2,652 to the TIF #11 Land of Lakes Tile fund.
As Reimbursement
. The Park fund transferred $63,767 to the Capital Outlay Reserve fund.
. The 70th Street fund transferred $107,766 to the MacIver fund.
Close Funds
. The Capital Outlay Reserve fund transferred $54,154 to the City Hall fund.
-40-
CITY OF ALBERTVILLE, MINNESOTA
NOTES TO THE FINANCIAL STATEMENTS
DECEMBER 31, 2008
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 Special Assessment Bonds
The following bonds were issued to fmance various improvement projects in the City and will be repaid with the
collection of special assessment levies.
Description
G.O. Improvement
Bonds, Series 2003
G.O. Improvement
Bonds, Series 2007 A
G.O. Improvement
Refunding Bonds,
Series 2008B
Balance
Authorized Interest Issue Maturity at
and Issued Rate Date Date Year End
$ 3,235,000 2.00 - 4.15 % 08/15/03 02/01/19 $ 1,450,000
4,035,000 3.75 - 4.10 08/16/07 02/01/23 4,035,000
560,000
2.00 - 3.40
03/13/08
02/01/18
560,000
Total G.O. Special Assessment Bonds
$ 6,045,000
Annual debt service requirements to maturity for general obligation special assessment bonds are as follows:
Year Ending Governmental Activities Business-type Activities
December 31, Principal Interest Total Principal Interest Total
2009 $ 540,000 $ 189,518 $ 729,518 $ $ 32,035 $ 32,035
2010 180,000 178,950 358,950 10,000 31,848 41,848
2011 185,000 173,166 358,166 10,000 31,473 41,473
2012 285,000 165,015 450,015 35,000 30,585 65,585
2013 370,000 152,923 522,923 55,000 28,785 83,785
2014 - 2018 2,075,000 534,536 2,609,536 305,000 108,725 413,725
2019 - 2023 1,610,000 151,456 1,761,456 385,000 40,283 425,283
Total $ 5,245,000 $ 1.545.564 $ 6,790.564 $ 800.000 $ 303.734 $ 1.103,734
-41-
CITY OF ALBERTVILLE, MINNESOTA
NOTES TO THE FINANCIAL STATEMENTS
DECEMBER 31,2008
Note 3: DETAILED NOTES ON ALL FUNDS - CONTINUED
General Obligation Revenue Bonds
The following bonds were issued to finance 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 $ 539,330
G.O. Sewer Revenue
Bonds, Series 2005 4,000,000 3.15 - 4.25 12/22/05 12/01/25 3,565,000
G.O. Sewer Revenue
Refunding Bonds,
Series 2008A 805,000 2.00 - 3.20 03/13/08 02/01/16 805,000
Total G.O. Revenue Bonds $ 4,909,330
Annual debt service requirements to maturity for general obligation revenue bonds are as follows:
Year Ending Business-type Activities
December 31, Principal Interest Total
2009 $ 307,706 $ 178,145 $ 485,851
2010 305,474 168,669 474,143
2011 323,335 158,690 482,025
2012 336,293 148,043 484,336
2013 349,349 136,772 486,121
2014 - 2018 1,537,173 504,811 2,041,984
2019 - 2023 1,200,000 267,465 1,467,465
2024 - 2025 550,000 35,140 585,140
Total $ 4,909.330 $ 1.597,735 $ 6,507,065
-42-
CITY OF ALBERTVILLE, MINNESOTA
NOTES TO THE FINANCIAL STATEMENTS
DECEMBER 31, 2008
Note 3: DETAILED NOTES ON ALL FUNDS - CONTINUED
Revenue Bonds
The following bonds were issued to finance buildings for Public Works, City Hall and Fire Department.
Balance
Authorized Interest Issue Maturity at
Description and Issued Rate Date Date Year End
Public Project Lease Revenue
Bonds, Series 2004 $ 2,100,000 3.75 - 4.90 % 09/09/04 02/01/25 $ 1,920,000
Public Project Lease Revenue
Bonds, Series 2005 3,700,000 3.30 - 4.70 12/22/05 12/01/25 3,310,000
Total Revenue Bonds $ 5.230.000
Annual debt service requirements to maturity for revenue bonds are as follows:
Year Ending Governmental Activities
December 31, Principal Interest Total
2009 $ 220,000 $ 223,263 $ 443,263
2010 225,000 215,153 440,153
2011 235,000 206,621 441,621
2012 240,000 197,734 437,734
2013 250,000 188,485 438,485
2014 - 2018 1,430,000 781,138 2,211,138
2019 - 2023 1,785,000 440,556 2,225,556
2024 - 2025 845,000 53,158 898,158
Total $ 5,230,000 $ 2,306,108 $ 7,536,108
-43-
CITY OF ALBERTVILLE, MINNESOTA
NOTES TO THE FINANCIAL STATEMENTS
DECEMBER 31, 200S
Note 3: DETAILED NOTES ON ALL FUNDS - CONTINUED
Changes in Long-term Liabilities
Long-term liability activity for the year ended December 31, 200S was as follows:
Beginning Ending Due Within
Balance Increases Decreases Balance One Year
Governmental activities
Bonds payable:
G.O. Tax Increment bonds $ 30,000 $ $ (30,000) $ $
G.O. Special
Assessment bonds 5,515,000 560,000 (830,000) 5,245,000 540,000
Revenue bonds 6,085,000 (855,000) 5,230,000 220,000
Total bonds payable 11,630,000 560,000 (1,715,000) 10,475,000 760,000
Compensated absences
payable 39,502 32,676 (31,320) 40,858 30,644
Governmental activity
long-term liabilities $ 11,669,502 $ 592,676 $ (1,746,320) $ 10,515,858 $ 790.644
Business-type activities
Bonds payable
G.O. Revenue bonds $ 5,334,357 $ 805,000 $ (1,230,027) $ 4,909,330 $ 307,706
Deferred amount
on refunding (29,090) 3,636 (25,454) (3,636)
G.O. Special
Assessment bonds 800,000 800,000
Total bonds payable 6,134,357 775,910 (1,226,391) 5,683,876 304,070
Compensated absences
payable 10,334 7,081 (6,215) 11 ,200 8,400
Business-type activity
long-term liabilities $ 6,144,691 $ 782,991 $ (1,232,606) $ 5.695.076 $ 312,470
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.
Current Refunding
On March 13, 200S the City issued $S05,000 of G.O. Sewer Revenue Refunding Bonds, 200SA. The bonds bear
an average coupon rate of2.97 percent, and will refund the Series 2000A, G.O. Sewer Revenue Bond. As a
result of the refunding issue, the City will save $69,277 in debt service payments and achieve an economic gain
(the present value of the difference between the old and the new debt service) of $61,171.
On March 13, 200S the City issued $560,000 ofG.O. CIP Refunding Bonds, 200SB. The bonds bear an average
coupon rate of3.09 percent. The proceeds of the refunding issue and transfers will refund the Series 1999,
Lease Revenue Bond. As a result of the refunding issue, the City will save $60,211 in debt service payments and
achieve an economic gain (the present value of the difference between the old and the new debt service) of
$52,417.
-44-
CITY OF ALBERTVILLE, MINNESOTA
NOTES TO THE FINANCIAL STATEMENTS
DECEMBER 31, 2008
Note 3: DETAILED NOTES ON ALL FUNDS - CONTINUED
G. Tax Increment Financing Districts
The City is the administering authority for the following tax increment finance districts.
Captured - retained
Tax Tax
Increment Increment
District No. 1-7 District No. 1-8
M.S. 469 M.S. 469
Housing Redevelopment
1996 1997
25 years 15 years
$ 275 $ 195
32,051 12,544
$ 31,776 $ 12,349
Tax Tax
Increment Increment
District No. 1-10 District No.1-II
M.S. 469 M.S. 469
Redevelopment Redevelopment
1998 1999
15 years 15 years
$ 710 $ 1,712
14,046 37,302
$ 13,336 $ 35,590
Authorizing law
Type of district
Year established
Duration of district
Tax capacity
Original
Current
Authorizing law
Type of district
Year established
Duration of district
Tax capacity
Original
Current
Captured - retained
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 financial statements.
-45-
CITY OF ALBERTVILLE, MINNESOTA
NOTES TO THE FINANCIAL STATEMENTS
DECEMBER 31, 2008
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 (pERF), which is a cost-sharing, multiple-employer retirement plan. This plan is established
and administered in accordance with Minnesota statutes, chapters 353 and 356.
PERF members belong to either the Coordinated Plan or the Basic Plan. Coordinated Plan members are
covered by Social Security and Basic Plan members are not. All new members must participate in the
Coordinated Plan.
PERA provides retirement benefits as well as disability benefits to members, and benefits to survivors upon
death of eligible members. Benefits are established by 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. Normal retirement age is the
age for unreduced Social Security benefits capped at 66 for Coordinated members hired on or after July 1, 1989.
A reduced retirement annuity is also available to eligible members seeking early retirement.
There are different types of annuities available to members upon retirement. A 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 [mancial statements and required supplementary
information for PERF and PEPFF. That report may be 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 6.00 percent, respectively, of their annual covered salary in 2008.
The City is required to contribute the following percentages of annual covered payroll: 11.78 percent for Basic
Plan PERF members, and 6.50 percent for Coordinated Plan PERF members. Employer contribution rates for
the Coordinated Plan will increase to 6.75 percent, effective January 1,2009. The City's contributions to the
PERF for the years ending December 31, 2008, 2007 and 2006, were $48,672, $36,882 and $34,470,
respectively. The City's contributions were equal to the contractually required contributions for each year as set
by Minnesota statute.
-46-
CITY OF ALBERTVILLE, MINNESOTA
NOTES TO THE FINANCIAL STATEMENTS
DECEMBER 31, 2008
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 financial report that includes [mancial 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.
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
$
38,420
Contributions Made
State Aid
38,420
Actuarial Valuation Date
Actuarial Cost Method
Amortization Method
12/31/08
Entry age normal
Level percentage - open
Remaining Amortization Period
Normal cost
Prior service cost
20 years
10 years
Asset valuation method
Market
Actuarial Assumptions
Investment rate of return
Projected salary increases
Inflation rate
Cost of living adjustments
5%
N/A
N/A
None
-47-
CITY OF ALBERTVILLE, MINNESOTA
NOTES TO THE FINANCIAL STATEMENTS
DECEMBER 31,2008
Note 5: DEFINED BENEFIT PENSION PLANS - FIRE RELIEF ASSOCIATION - CONTINUED
Year
Ending
Three Year Trend Information
Annual
Pension
Cost (APC)
12/31/08
12/31/07
12/31/06
$
38,420
44,321
49,376
Actuarial
Valuation
Date
Actuarial
Value of
Assets
Required Supplementary Information
Assets in
Excess of
(Unfunded)
Accrued
Liability
Actuarial
Accrued
Liability
12/31/08
12/31/07
12/31/06
*
*
*
$ 418,272
377,896
$
$ 456,545
385,049
38,273
7,153
* Information not available at time of the audit.
Note 6: JOINT POWERS AGREEMENTS
A. Joint Powers Water Board of Albertville, Hanover and St. Michael
Percentage
of APC
Contributed
Net Pension
Obligation
100.00 %
100.00
143.79
$
Funded
Rate
Pension
Benefit
Per Year
of Service
* %
109.2
101.9
*
$
1,700
1,500
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
(BDA). 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.
Separate financial statements can be obtained by writing to the Joint Powers Water Board, 11100 50th Street NE,
Albertville, Minnesota 55301.
JOINT POWERS WATER BOARD
STATEMENT OF NET ASSETS
DECEMBER 31, 2008
Assets
Liabilities
Net assets
Total liabilities and net assets
-48-
$ 28.365.254
$ 12,778,336
15,586,918
$ 28.365.254
CITY OF ALBERTVILLE, MINNESOTA
NOTES TO THE FINANCIAL STATEMENTS
DECEMBER 31, 2008
Note 6: JOINT POWERS AGREEMENTS - CONTINUED
JOINT POWERS WATER BOARD
SUMMARY STATEMENT OF ACTIVITIES
YEAR ENDED DECEMBER 31, 2008
Operating revenues
Operating expenses
$ 2,332,355
1,322,532
Operating income
1,009,823
Nonoperating revenues
33,253
Change in net assets
1,043,076
Net assets, January 1
14,543,842
Net assets, December 31
$ 15,586.918
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.
Separate fmancial statements can be obtained by contacting Tina Lannes at Albertville City Hall.
ST. MICHAEL - ALBERTVILLE ICE ARENA
STATEMENT OF NET ASSETS
DECEMBER 31, 2007
Assets
$ 1.539.278
Liabilities
Net assets
$ 460,189
1,079,089
Total liabilities and net assets
$ 1.539.278
-49-
CITY OF ALBERTVILLE, MINNESOTA
NOTES TO THE FINANCIAL STATEMENTS
DECEMBER 31,2008
Note 6: JOINT POWERS AGREEMENTS - CONTINUED
ST. MICHAEL - ALBERTVILLE ICE ARENA
SUMMARY STATEMENT OF ACTIVITIES
YEAR ENDED DECEMBER 31,2007
Operating revenues
Operating expenses
$ 264,362
274,043
(9,681)
(2,641)
(12,322)
1,091,411
$ 1.079,089
Operating income (loss)
Nonoperating expenses
Change in net assets
Net assets, January I
Net assets, December 31
Note 7: OTHER INFORMATION
A. Risk Management
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.
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$I,OOO,OOO. 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.
B. Legal Debt Margin
In accordance with Minnesota statutes, the City may not incur or be subject to net debt in excess of three percent
of the market value of taxable property within the City. Net debt is payable solely from ad valorem taxes and,
therefore, excludes debt fmanced partially or entirely by special assessments, enterprise fund revenues or tax
increments. The City's applicable debt does not exceed the limit.
-50-
CITY OF ALBERTVILLE, MINNESOTA
NOTES TO THE FINANCIAL STATEMENTS
DECEMBER 31, 2008
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 due from other governments
in the General fund.
$
(10,799)
Adjust beginning contracts payable
in the closed capital projects fund.
70,533
Adjust beginning accounts receivable and related allowance
for doubtful accounts in the closed capital projects fund.
(150,084)
Total governmental activities
prior period adjustments
$
(90.350)
Adjust beginning accounts payable
in the sewer fund.
$
181,103
Adjust beginning accounts receivable
in each of the following funds:
Sewer fund
Water fund
Storm water fund
(294,124)
(271,899)
(37,411)
Total business-type activities
prior period adjustments
$ (422.331)
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 financing for a specific third party. The City has issued revenue bonds to
provide fmancial 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 financial statements.
As of December 31, 2008, there was one revenue bond outstanding. The aggregate principal amount payable at
year end is $3,515,000. The original amount issued was $3,540,000.
E. Contingent Liabilities
For the year ended December 31, 2008, 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, 2008
Special
Revenue
203 Total
Revolving Capital Nonmajor
Loan Projects Funds
ASSETS
Cash and temporary investments $ 172,837 $ 1,914,627 $ 2,087,464
Receivables
Special assessments
Delinquent 104,300 104,300
Loans 10,122 10,122
TOTAL ASSETS $ 182,959 $ 2,018,927 $ 2,201,886
LIABILITIES AND FUND BALANCES
LIABILITIES
Accounts payable $ $ 102,005 $ 102,005
Contracts payable 68,856 68,856
Due to other funds 497,433 497,433
Deferred revenue 10,122 104,300 114,422
TOTAL LIABILITIES 10,122 772,594 782,716
FUND BALANCES
Unreserved
Designated for capital expenditures 1,481,589 1,481,589
Undesignated 172,837 (235,256) (62,419)
TOTAL FUND BALANCES 172,837 1,246,333 1,419,170
TOTAL LIABILITIES AND FUND BALANCES $ 182,959 $ 2,018,927 $ 2,201,886
-52-
CITY OF ALBERTVILLE, MINNESOTA
NONMAJOR GOVERNMENTAL FUNDS
COMBINING STATEMENT OF REVENUES, EXPENDITURES AND
CHANGES IN FUND BALANCES
FOR THE YEAR ENDED DECEMBER 31, 2008
Special
Revenue
203 Total
Revolving Capital Nonmajor
Loan Projects Funds
REVENUES
Tax increments $ $ 94,855 $ 94,855
Charges for service 290 290
Special assessments 14 14
Interest on investments 4,998 50,548 55,546
Miscellaneous 7,129 143,479 150,608
TOTAL REVENUES 12,127 289,186 301,313
EXPENDITURES
Current
General government 133,834 133,834
Culture and recreation 71,825 71,825
Economic development 7,128 105,122 112,250
Capital outlay
General government 14,467 14,467
Public works 503,006 503,006
Culture and recreation 74,369 74,369
Economic development 28,886 28,886
TOTAL EXPENDITURES 7,128 931,509 938,637
EXCESS (DEFICIENCY) OF REVENUES
OVER (UNDER) EXPENDITURES 4,999 (642,323) (637,324)
OTHER FINANCING SOURCES (USES)
Transfers in 310,172 310,172
Transfers out (233,305) (233,305)
TOTAL OTHER FINANCING
SOURCES (USES) 76,867 76,867
NET CHANGE IN FUND BALANCES 4,999 (565,456) (560,457)
FUND BALANCES, JANUARY 1 167,838 1,811,789 1,979,627
FUND BALANCES, DECEMBER 31 $ 172,837 $ 1,246,333 $ 1,419,170
-53-
NONMAJOR CAPITAL PROJECTS FUNDS
Capital projects funds are used to account for the acquisition and construction of major capital facilities other than those financed
by enterprise funds.
Capital Outlay Reserve - This fund was established to accumulate resources necessary to fund future capital improvements and
equipment purchases.
Park Fund - This fund accounts for the accumulation of resources and payments made for the construction of park
improvements. Park dedication fees, contributions and donations as well as interest are the main fmancing sources.
TIF #7 Senior Housin!! - This fund was created to facilitate the construction of the Senior Housing project within the City. This
fund accounts for the fmancial activity related to that project.
TIF #8 Vetsch Cabinets - This fund was created to facilitate the construction of Vetsch Cabinets facility within the City. This
fund accounts for the financial activity related to that facility.
TIF #9 Barthel Bus - This fund was created to facilitate the construction of the Barthel Bus facility additions within the City. This
fund accounts for the fmancial activity related to that facility.
TIF #10 Mold Tech - This fund was created to facilitate the construction of the Mold-Tech facility within the City. This fund
accounts for the financial activity related to that facility.
TIF #11 Land of Lake Tile - This fund was created to facilitate the construction of the Land of Lake Tile facility within the City.
This fund accounts for the financial activity related to t that facility.
Interstate 94 - This fund was established to accumulate resources and pay expenses related to the proposed redesign for the
Interstate 94 interchanges within the City.
City Hall- This fund was created to accumulate resources and pay expenses related to the construction of City Hall.
52nd Street Industrial Park - This fund was created to accumulate resources and pay expenses related to the improvements made
to the industrial park.
CSAH 19 and 57th Intersection - This fund was created to accumulate resources and pay expenses related to the intersection
road improvement project.
NONMAJOR CAPITAL PROJECTS FUNDS - CONTINUED
Capital projects funds are used to account for the acquisition and construction ofmajor capital facilities other than those financed
by enterprise funds.
CSAH 19 and 50th Street- This fund was established to accumulate resources and pay expenses related to the road improvement
project. This project was a cost-sharing venture with Wright County.
70th Street - This fund was created to accumulate resources necessary to pay expenses related to the road improvement project.
Lachman Avenue - This fund was created to accumulate resources necessary to pay expenses related to the road improvement
project.
New Ice Sheet - This fund was established to accumulate resources for the future expansion of a second ice sheet at the STMA ice
arena.
Phillip Morris Lift Station - This fund was created to accumulate the resources necessary to pay the expenses for the
construction of the lift station.
MacIver - This fund was created to accumulate resources necessary to pay expenses related to the road improvement project.
CSAH 37 Utilities - This fund was created to accumulate the resources and the pay the expenses for the various utility
improvements made along County State Aid Highway 37.
Franklin Sewer Extension - This fund was established to accumulate the resources and pay the expenses for extending the sewer
line to Franklin's facility. This project was a cost-sharing venture with the Franklin's.
CITY OF ALBERTVILLE, MINNESOTA
NONMAJOR CAPITAL PROJECTS FUNDS
COMBnITNGBALANCESHEET
DECEMBER 31, 2008
102 201 407 408
Capital TIF #7 TIF #8
Outlay Park Senior Vetsch
Reserve Fund Housing Cabinets
ASSETS
Cash and temporary investments $ 1,485,308 $ 54,964 $ 43,865 $ 7,016
Special assessments receivable
Delinquent
TOTAL ASSETS $ 1,485,308 $ 54,964 $ 43,865 $ 7,016
LIABILITIES AND FUND BALANCES (DEFICITS)
LIABILITIES
Accounts payable $ 3,719 $ $ $
Contracts payable 13,057
Due to other funds
Deferred revenue
TOTAL LIABILITIES 3,719 13,057
FUND BALANCES (DEFICITS)
Unreserved
Designated for capital expenditures 1,481,589
Undesignated 41,907 43,865 7,016
TOTAL FUND BALANCES (DEFICITS) 1,481,589 41,907 43,865 7,016
TOTAL LIABILITIES AND
FUND BALANCES (DEFICITS) $ 1,485,308 $ 54,964 $ 43,865 $ 7,016
-54-
409 410 411 468 482 492
TIF #9 TIF#l1 52nd Street
Barthel TIP # 10 Land of Lake City Industrial
Bus Mold - Tech Tile Interstate 94 Hall Park
$ 24,265 $ $ $ $ 1,110 $
$
24,265
$
$
$
$
1,110 $
$
$
$
$
$
1,110 $
6,932
14,679
1,110
21,611
24,265
(21,611)
24,265
(21,611)
$
24,265
$
$
$
$
1,110 $
-55-
CITY OF ALBERTVILLE, MINNESOTA
NONMAJOR CAPITAL PROJECTS FUNDS
COMBINING BALANCE SHEET - CONTINUED
DECEMBER 31,2008
493 494 497 499
CSAH 19 CSAH 19
and 57th and 50th Lachman
Intersection Street 70th Street Avenue
ASSETS
Cash and temporary investments $ 105,520 $ $ 42,895 $ 149,684
Special assessments receivable
Delinquent 52,150 52,150
TOTAL ASSETS $ 157,670 $ $ 95,045 $ 149,684
LIABILITIES AND FUND BALANCES (DEFICITS)
LIABILITIES
Accounts payable $ 12,245 $ 16,752 $ 42,895 $ 13,057
Contracts payable
Due to other funds 33,198
Deferred revenue 52,150 52,150
TOTAL LIABILITIES 64,395 49,950 95,045 13,057
FUND BALANCES (DEFICITS)
Unreserved
Designated for capital expenditures
Undesignated 93,275 (49,950) 136,627
TOTAL FUND BALANCES (DEFICITS) 93,275 (49,950) 136,627
TOTAL LIABILITIES AND
FUND BALANCES (DEFICITS) $ 157,670 $ $ 95,045 $ 149,684
-56-
500 501 502 503 504
Phillip Franklin
New Morris CSAH 37 Sewer
Ice Sheet Lift-Station MacIver Utilities Extension Total
$ $ $ $ $ $ 1,914,627
104,300
$ $ $ $ $ $ 2,018,927
$ $ 2,327 $ 7,568 $ 2,332 $ $ 102,005
41,1I9 7,748 68,856
133,086 281,189 34,060 1,221 497,433
104,300
176,532 288,757 36,392 8,969 772,594
(176,532)
(288,757)
(36,392)
(8,969)
1,481,589
(235,256)
(176,532)
(288,757)
(36,392)
(8,969)
1,246,333
$
$
$
$
$
$ 2,018,927
-57-
CITY OF ALBERTVILLE, MINNESOTA
NONMAJOR CAPITAL PROJECTS FUNDS
COMBINING SCHEDULE OF REVENUES, EXPENDITURES AND
CHANGES IN FUND BALANCES (DEFICITS)
FOR THE YEAR ENDED DECEMBER 31, 2008
102 201 407 408
Capital TIP #7 TIP #8
Outlay Park Senior Vetsch
Reserve Fund Housing Cabinets
REVENUES
Tax increments $ $ $ 34,956 $ 13,585
Charges for services
Special assessments
Interest on investments 44,152 4,429 1,158 158
Miscellaneous 5,500
TOTAL REVENUES 44,152 9,929 36,114 13,743
EXPENDITURES
Current
General government 133,834
Culture and recreation 71,825
Economic development 30,917 12,824
Capital outlay
General government
Public works
Culture and recreation 74,332
Economic development
TOTAL EXPENDITURES 208,166 71,825 30,917 12,824
EXCESS (DEFICIENCY) OF REVENUES
OVER (UNDER) EXPENDITURES (164,014) (61,896) 5,197 919
OTHER FINANCING SOURCES (USES)
Transfers in 110,363
Transfers out (61,772) (63,767)
TOTAL OTHER FINANCING
SOURCES (USES) 48,591 (63,767)
NET CHANGE IN FUND BALANCES (115,423) (125,663) 5,197 919
FUND BALANCES (DEFICITS), JANUARY 1 1,597,012 167,570 38,668 6,097
FUND BALANCES (DEFICITS), DECEMBER 31 $ 1,481,589 $ 41,907 $ 43,865 $ 7,016
-58-
409 410 411 468 482 492
TIF #9 TIF#l1 52nd Street
Barthel TIF # 10 Land of Lakes City Industrial
Bus Mold - Tech Tile Interstate 94 Hall Park
$ $ 12,071 $ 34,243 $ $
970 (428)
970 12,071 34,243 (428)
16,621
11,626
33,134
14,467
2,402
28,886
16,621
11,626
33,134
28,886
14,467
2,402
1,109
(28,886)
(14,467)
(2,830)
(15,651)
445
4,966
2,652
28,886
54,154
4,966
2,652
28,886
54,154
(15,651)
5,411
3,761
39,687
(2,830)
39,916
(5,411)
(3,761)
(39,687)
(18,781)
$
24,265 $
$
$
$
$
(21,611)
-59-
CITY OF ALBERTVil,LE, MINNESOTA
NONMAJOR CAPITAL PROJECTS FUNDS
COMBINING SCHEDULE OF REVENUES, EXPENDITURES AND
CHANGES IN FUND BALANCES (DEFICITS) - CONTINUED
FOR THE YEAR ENDED DECEMBER 31, 2008
493 494 497 499
CSAH 19 CSAH 19
and 57th and 50th Lachman
Intersection Street 70th Street Avenue
REVENUES
Tax increments $ $ $ $
Charges for services 290
Special assessments 7 7
Interest on investments 3,141 (967) 4,699 6,102
Miscellaneous
TOTAL REVENUES 3,148 (967) 4,996 6,102
EXPENDITURES
Current
General government
Culture and recreation
Economic development
Capital outlay
General government
Public works 18,695 43,267 94,000 98,793
Culture and recreation
Economic development
TOTAL EXPENDITURES 18,695 43,267 94,000 98,793
EXCESS (DEFICIENCY) OF REVENUES
OVER (UNDER) EXPENDITURES (15,547) (44,234) (89,004) (92,691)
OTHER FINANCING SOURCES (USES)
Transfers in
Transfers out (107,766)
TOTAL OTHER FINANCING
SOURCES (USES) (107,766)
NET CHANGE IN FUND BALANCES (15,547) (44,234) (196,770) (92,691)
FUND BALANCES (DEFICITS), JANUARY 1 108,822 (5,716) 196,770 229,318
FUND BALANCES (DEFICITS), DECEMBER 31 $ 93,275 $ (49,950) $ $ 136,627
-60-
500 501 502 503 504
Phillip Franklin
New Morris CSAH 37 Sewer
Ice Sheet Lift-Station MacIver Utilities Extension Total
$ $ $ $ $ $ 94,855
290
14
(3,876) (7,962) (992) (36) 50,548
137,979 143,479
(3,876) (7,962) (992) 137,943 289,186
133,834
71,825
105,122
14,467
55,969 7,568 35,400 146,912 503,006
37 74,369
28,886
37 55,969 7,568 35,400 146,912 931,509
(37) (59,845) (15,530) (36,392) (8,969) (642,323)
1,385 107,766 310,172
(233,305)
1,385 107,766 76,867
1,348 (59,845) 92,236 (36,392) (8,969) (565,456)
(1,348) (116,687) (380,993) 1,811,789
$ $ (176,532) $ (288,757) $ (36,392) $ (8,969) $ 1,246,333
-61-
CITY OF ALBERTVILLE, MINNESOTA
GENERAL FUND
SCHEDULE OF REVENUES, EXPENDITURES AND
CHANGES IN FUND BALANCES - BUDGET AND ACTUAL
FOR THE YEAR ENDED DECEMBER 31, 2008
(With comparative actual amounts for the year ended December 31, 2007)
2008 2007
Variance with
Budgeted Amounts Final Budget -
Actual Over Actual
Original Final Amounts (Under) Amounts
REVENUES
Taxes
General property taxes $ 2,144,171 $ 2,144,171 $ 2,074,327 $ (69,844) $ 1,861,916
Licenses and permits
Business 60,150 60,150 99,728 39,578 91,190
Nonbusiness 303,100 303,100 286,836 (16,264) 192,097
Total 363,250 363,250 386,564 23,314 283,287
Intergovernmental
State
Property tax credits 48,436 48,436 94,814
Other 83,500 83,500 75,269 (8,231) 80,001
County
Highway aid 10,000 10,000 5,589 (4,411) 14,854
Total 93,500 93,500 129,294 35,794 189,669
Charges for services
General government 472,037 472,037 382,226 (89,811) 495,950
Public safety 92,220 92,220 129,151 36,931 84,944
Culture and recreation 4,000 4,000 6,184 2,184 6,970
Total 568,257 568,257 517,561 (50,696) 587,864
Fines and forfeitures 200 200 (200) 3,450
Special assessments 40,855 40,855
Interest on investments 120,000 120,000 35,487 (84,513) 61,496
Miscellaneous
Other 7,000 7,000 25,716 18,716 60,533
Contributions and donations 13,031 13,031 17,282
Refunds and reimbursements 106,723 106,723 100,986
Total 7,000 7,000 145,470 138,470 178,801
TOTAL REVENUES 3,296,378 3,296,378 3,329,558 33,180 3,166,483
-62-
CITY OF ALBERlVILLE, MINNESOTA
GENERAL FUND
SCHEDULE OF REVENUES, EXPENDITURES AND
CHANGES IN FUND BALANCES - BUDGET AND ACTUAL - CONTINUED
FOR THE YEAR ENDED DECEMBER 31, 2008
(With comparative actual amounts for the year ended December 31, 2007)
2008 2007
Variance with
Budgeted Amounts Final Budget -
Actual Over Actual
Original Final Amounts (Under) Amounts
EXPENDITURES
Current
General govermnent
Legislative
Personal services $ 20,894 $ 20,894 $ 21,035 $ 141 $ 20,866
Supplies 750 750 1,125 375 510
Other services and charges 24,700 24,700 30,623 5,923 24,488
Total 46,344 46,344 52,783 6,439 45,864
Administration
Personal services 120,210 120,210 122,789 2,579 115,970
Supplies 1,850 1,850 2,114 264 1,747
Other services and charges 5,900 5,900 5,417 (483) 4,277
Total 127,960 127,960 130,320 2,360 121,994
City clerk
Personal services 81,805 81,805 79,803 (2,002) 85,595
Supplies 7,250 7,250 6,783 (467) 6,483
Other services and charges 46,948 46,948 40,922 (6,026) 39,611
Total 136,003 136,003 127,508 (8,495) 131,689
Elections and voter registration
Personal. services 363 363
Supplies 59
Other services and charges 9,000 9,000 5,373 (3,627) 40
Total 9,000 9,000 5,736 (3,264) 99
Treasurer
Personal services 106,765 106,765 101,777 (4,988) 87,833
Supplies 2,950 2,950 5,542 2,592 5,671
Other services and charges 3,750 3,750 9,688 5,938 1,901
Total 113,465 113,465 117,007 3,542 95,405
Assessing
Other services and charges 35,000 35,000 31,973 (3,027) 31,041
Legal
Other services and charges 35,400 35,400 74,622 39,222 58,640
-63-
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, 2008
(With comparative actual amounts for the year ended December 31, 2007)
2008 2007
Variance with
Budgeted Amounts Final Budget -
Actual Over Actual
Original Final Amounts (Under) Amounts
EXPENDITURES - CONTINUED
Current - Continued
General government - continued
Engineering
Other services and charges $ 65,000 $ 65,000 $ 132,903 $ 67,903 $ 124,561
Miscellaneous
Personal services 7,484 7,484 2,541 (4,943) 6,832
Supplies 1,500 1,500 652 (848) 580
Other services and charges 134,650 134,650 213,618 78,968 232,938
Total 143,634 143,634 216,811 73,177 240,350
Total general government 711,806 711,806 889,663 177,857 849,643
Public safety
Police protection
Other services and charges 474,000 474,000 474,336 336 457,710
Fire protection
Personal services 197,722 197,722 108,310 (89,412) 134,030
Supplies 12,000 12,000 10,427 (1,573) 15,215
Other services and charges 109,031 109,031 116,878 7,847 102,411
Total 318,753 318,753 235,615 (83,138) 251,656
Protective inspection
Personal services 179,794 179,794 175,544 (4,250) 159,608
Supplies 6,500 6,500 4,104 (2,396) 5,143
Other services and charges 230,136 230,136 216,426 (13,710) 245,892
Total 416,430 416,430 396,074 (20,356) 410,643
Animal control
Other services and charges 3,500 3,500 4,016 516 2,979
Total public safety 1,212,683 1,212,683 1,110,041 (102,642) 1,122,988
-64-
CITY OF ALBERTVILLE, MINNESOTA
GENERAL FUND
SCHEDULE OF REVENUES, EXPENDITURES AND
CHANGES IN FUND BALANCES - BUDGET AND ACTUAL - CONTINUED
FOR THE YEAR ENDED DECEMBER 31,2008
(With comparative actual amounts for the year ended December 31, 2007)
2008 2007
Variance with
Budgeted Amounts Final Budget -
Actual Over Actual
Original Final Amounts (Under) Amounts
EXPENDITURES - CONTINUED
Current - Continued
Public works
Streets
Personal services $ 126,470 $ 126,470 $ 149,496 $ 23,026 $ 137,143
Supplies 233,375 233,375 270,437 37,062 198,213
Other services and charges 89,300 89,300 90,714 1,414 93,578
Total 449,145 449,145 510,647 61,502 428,934
Street lighting
Other services and charges 75,000 75,000 69,015 (5,985) 67,695
Sanitation
Supplies 3,195
Other services and charges 46,500 46,500 53,594 7,094 44,528
Total 46,500 46,500 53,594 7,094 47,723
Total public works 570,645 570,645 633,256 62,611 544,352
Culture and recreation
Parks
Personal services 116,594 116,594 121,509 4,915 94,245
Supplies 9,850 9,850 11,614 1,764 11,123
Other services and charges 67,800 67,800 69,219 1,419 63,769
Total culture and recreation 194,244 194,244 202,342 8,098 169,137
Economic Development
Supplies 309
Other services and charges 8,500 8,500 II ,890 3,390 24,240
Total economic development 8,500 8,500 1l,890 3,390 24,549
Total current expenditures 2,697,878 2,697,878 2,847,192 149,314 2,710,669
-65-
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, 2008
(With comparative actual amounts for the year ended December 31, 2007)
2008 2007
Variance with
Budgeted Amounts Final Budget -
Actual Over Actual
Original Final Amounts (Under) Amounts
EXPENDITURES - CONTINUED
Capital outlay
General government $ 408,000 $ 408,000 $ 4,536 $ (403,464) $ 421,132
Public safety 115,500 115,500 13,408 (102,092) 34,968
Public works 36,000 36,000 4,440 (31,560) 6,400
Culture and recreation 39,000 39,000 9,252 (29,748) 15,448
Total capital outlay 598,500 598,500 31,636 (566,864) 477,948
TOTAL EXPENDITURES 3,296,378 3,296,378 2,878,828 (417,550) 3,188,617
EXCESS (DEFICIENCY) OF REVENUES
OVER (UNDER) EXPENDITURES 450,730 450,730 (22,134)
OTHER FINANCING SOURCES (USES)
Transfers in 133,208
Sale of capital assets 129,854
Transfers out (372,752) (372,752) (997,475)
TOTAL OTHER FINANCING
SOURCES (USES) (372,752) (372,752) (734,413)
NET CHANGE IN FUND BALANCES 77,978 77,978 (756,547)
FUND BALANCES, JANUARY 1 792,457 792,457 792,457 1,549,004
PIDORPEIDODADWSTMENTS (10,799) (10,799)
FUND BALANCES, DECEMBER 31 $ 792,457 $ 792,457 $ 859,636 $ 67,179 $ 792,457
-66-
CITY OF ALBERTVILLE, MINNESOTA
DEBT SERVICE FUND
COMBINING BALANCE SHEET
DECEMBER 31, 2008
300 322 353 354
Closed 1992A 1996A 1999
Bond G.O. G.O. Lease
Issues Improvement Tax Increment Revenue
ASSETS
Cash and temporary investments $ 77,309 $ $ $ 2,902
Receivables
Delinquent taxes 502 4,644
Special assessments
Delinquent
Deferred
Due from other governments
Land held for resale
TOTAL ASSETS $ 77,811 $ $ $ 7,546
LIABILITIES AND FUND BALANCES
LIABILITIES
Due to other funds $ $ $ $
Deferred revenue 367 3,766
TOTAL LIABILITIES 367 3,766
FUND BALANCES
Reserved for
Land held for resale
Unreserved (deficits) 77,444 3,780
TOTAL FUND BALANCES 77,444 3,780
TOTAL LIABILITIES AND
FUND BALANCES $ 77,811 $ $ $ 7,546
-67-
355 357 358 359 360
CSAH 19
1999A 2003A 2004 2007
G.O. G.O. Lease City Hall G.O.
Improvement Improvement Revenue Revenue Improvement
$ 9,288 $ $ 680,032 $ 18,066 $ 207,891
3,072 6,047 12,274 6,638
493 28,342
75,327 268,306 596,571
550,000
2,735,714
$ 88,180 $ 3,560,067 $ 692,306 $ 24,704 $ 832,804
$
$
986,859 $
823,225
$
$
78,293
9,974
5,506
624,913
78,293
1,810,084
9,974
5,506
624,913
9,887
2,735,714
(985,731)
682,332
19,198
207,891
9,887
1,749,983
682,332
19,198
207,891
$
88,180
$ 3,560,067 $
692,306
$
24,704
$
832,804
-68-
CITY OF ALBERTVILLE, MINNESOTA
DEBT SERVICE FUND
COMBINING BALANCE SHEET - CONTINUED
DECEMBER 31, 2008
361 362
Lachman Industrial
2007 2007
G.O. G.O.
Improvement Improvement Totals
ASSETS
Cash and temporary investments $ 158,390 $ 135,002 $ 1,288,880
Receivables
Delinquent taxes 33,177
Special assessments
Delinquent 28,835
Deferred 207,435 1,041,803 2,189,442
Due from other governments 550,000
Land held for resale 2,735,714
TOTAL ASSETS $ 365,825 $ 1,176,805 $ 6,826,048
LIABILITIES AND FUND BALANCES
LIABILITIES
Due to other funds $ $ $ 986,859
Deferred revenue 207,435 1,041,803 2,795,282
TOTAL LIABILITIES 207,435 1,041,803 3,782,141
FUND BALANCES
Reserved for
Land held for resale 2,735,714
Unreserved (deficits) 158,390 135,002 308,193
TOTAL FUND BALANCES 158,390 135,002 3,043,907
TOTAL LIABILITIES AND
FUND BALANCES $ 365,825 $ 1,176,805 $ 6,826,048
-69-
CITY OF ALBERTVILLE, MINNESOTA
DEBT SERVICE FUND
COMBINING SCHEDULES OF REVENUES, EXPENDITURES AND
CHANGES IN FUND BALANCES (DEFICITS)
FOR THE YEAR ENDED DECEMBER 31, 2008
300 322 353 354
Closed 1992A 1996A 1999
Bond G.O. G.O. Lease
Issues Improvement Tax Increment Revenue
REVENUES
Property taxes $ 38 $ $ 312 $ 58,827
Special assessments
Miscellaneous
Interest earnings 5,041 441 1,136
TOTAL REVENUES 5,079 441 312 59,963
EXPENDITURES
Debt Service
Principal 30,000 85,000
Interest and other 250 810 59,523
TOTAL EXPENDITURES 250 30,810 144,523
EXCESS (DEFICIENCY) OF REVENUES
OVER (UNDER) EXPENDITURES 4,829 441 (30,498) (84,560)
OTHER FINANCING SOURCES (USES)
Transfers in 15,267 111,915
Bonds refunded (560,000)
Issuance of refunding debt 560,000
Transfers out (111,915) (15,267)
TOTAL OTHER FINANCING
SOURCES (USES) (96,648) (15,267) 111,915
NET CHANGE IN FUND BALANCE (91,819) (14,826) 81,417 (84,560)
FUND BALANCE (DEFICITS), JANUARY 1 169,263 14,826 (81,417) 88,340
FUND BALANCE, DECEMBER 31 $ 77,444 $ $ $ 3,780
-70-
355 357 358 359 360
CSAH 19
1999A 2003A 2004 2007
G.O. G.O. Lease City Hall G.O.
Improvement Improvement Revenue Revenue Improvement
$ 38,442 $ 79,279 $ 156,654 $ 187,290 $
81,747 68,606 88,957
50,000
697 (28,743) 18,324 1,833 5,575
120,886 169,142 174,978 189,123 94,532
360,000
10,651
370,651
(249,765)
(249,765)
259,652
$
9,887
470,000
59,054
75,000
86,094
135,000
144,868
66,045
529,054
66,045
161,094
279,868
(359,912)
(90,745)
28,487
13,884
37,100
37,100
(322,812)
28,487
13,884
(90,745)
2,072,795
668,448
109,943
179,404
$ 1,749,983
$
$
$
207,891
682,332
19,198
-71-
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, 2008
361 362
Lachman Industrial
2007 2007
G.O. G.O.
Improvement Improvement Totals
REVENUES
Property taxes $ $ $ 520,842
Special assessments 174,517 167,128 580,955
Miscellaneous 50,000
Interest earnings 2,225 2,363 8,892
TOTAL REVENUES 176,742 169,491 1,160,689
EXPENDITURES
Debt Service
Principal 1,155,000
Interest and other 22,005 41,360 490,660
TOTAL EXPENDITURES 22,005 41,360 1,645,660
EXCESS (DEFICIENCY) OF REVENUES
OVER (UNDER) EXPENDITURES 154,737 128,131 (484,971)
OTHER FINANCING SOURCES (USES)
Transfers in 164,282
Bonds refunded (560,000)
Issuance of refunding debt 560,000
Transfers out (127,182)
TOTAL OTHER FINANCING
SOURCES (USES) 37,100
NET CHANGE IN FUND BALANCE 154,737 128,131 (447,871)
FUND BALANCE (DEFICITS), JANUARY 1 3,653 6,871 3,491,778
FUND BALANCE, DECEMBER 31 $ 158,390 $ 135,002 $ 3,043,907
-72-
CITY OF ALBERTVILLE, MINNESOTA
COMBINING STATEMENT OF CHANGES IN ASSETS AND LIABILITIES
AGENCY FUNDS
DECEMBER 31, 2008
Balance Balance
January 1 Additions Deductions December 31
Albertville Friendly City Days
ASSETS
Cash and temporary investments $ 14,762 $ 3,149 $ (2,530) $ 15,381
LIABILITIES
Accounts payable $ 14,762 $ 3,149 $ (2,530) $ 15,381
Landscaping Escrows
ASSETS
Cash and temporary investments $ 70,618 $ 259,448 $ (207,452) $ 122,614
LIABILITIES
Accounts payable $ 70,618 $ 259,448 $ (207,452) $ 122,614
TOTAL AGENCY FUNDS
ASSETS
Cash and temporary investments $ 85,380 $ 262,597 $ (209,982) $ 137,995
LIABILITIES
Accounts payable $ 85,380 $ 262,597 $ (209,982) $ 137,995
-73-
CITY OF ALBERTVILLE, MINNESOTA
SUMMARY FINANCIAL REPORT
REVENUES AND EXPENDITURES FOR GENERAL OPERA nONS
GOVERNMENTAL FUNDS
YEARS ENDED DECEMBER 31, 2008 AND 2007
Percent
Total Increase
2008 2007 (Decrease)
REVENUES
Taxes $ 2,690,024 $ 2,322,488 15.83 %
Special assessments 847,075 691,833 22.44
Licenses and permits 386,564 283,287 36.46
Intergovernmental 129,294 717,556 (81.98)
Charges for services 878,486 2,150,160 (59.14)
Fines and forfeitures 3,450 (100.00)
Interest on investments 327,292 399,565 (18.09)
Miscellaneous 346,078 240,929 43.64
TOTAL REVENUES $ 5,604,813 $ 6,809,268 (17.69)
Per Capita 957.11 1,162.78 (17.69)
EXPENDITURES
Current
General government $ 1,023,497 $ 849,643 20.46 %
Public safety 1,110,041 1,122,988 (1.15)
Public works 691,311 563,455 22.69
Culture and recreation 274,167 246,507 11.22
Economic development 124,140 96,550 28.58
Capital outlay
General government 19,003 594,247 (96.80)
Public safety 13,408 34,968 (61.66)
Public works 650,484 3,295,620 (80.26)
Culture and recreation 83,621 23,453 256.55
Economic development 28,886 792,858 (96.36)
Debt service
Principal 1,155,000 765,000 50.98
Interest and other charges 490,660 401,882 22.09
TOTAL EXPENDITURES $ 5,664,218 $ 8,787,171 (35.54)
Per Capita 967.25 1,500.54 (35.54)
Total Long-term Indebtedness $ 10,475,000 $ 11,630,000 (9.93) %
Per Capita 1,788.76 1,986.00 (9.93)
General Fund Balance - December 31 $ 859,636 $ 792,457 8.48 %
Per Capita 146.80 135.32 8.48
The purpose of this report is to provide a summary of [mancial 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.
-74-
STATISTICAL SECTION
(Unaudited)
This part of the City of Albertville's comprehensive annual financial report presents detailed information as a context for
understanding what the information in the fmandal statements, note disclosures, and required supplementary information says
about the government's overall financial health.
Pa!!:e
Financial Trends
These schedules contain trend information to help the reader understand how
the government's financial performance and well-being have changed over time.
75
Revenue Capacity
These schedules contain information to help the reader assess the government's
most significant local revenue source, the property tax.
85
Debt Capacity
These schedules present information to help the reader assess the affordability
of the government's current levels of out-standing debt and the
government's ability to issue additional debt in the future.
91
Demographic and Economic Information
These schedules offer demographic and economic indicators
to help the reader understand the environment within which the
government's financial activities take place.
98
Operating Information
These schedules contain service and infrastructure data to help
the reader understand how the information in the government's
financial report relates to the services the government provides
and the activities it performs.
100
Sources: Unless otherwise noted, the information in these schedules is derivedfrom the annualfinancial reports for the
relevant year.
CITY OF ALBERTVILLE, MINNESOTA
STATISTICAL SECTION (UNAUDITED)
NET ASSETS BY COMPONENT
LAST FIVE FISCAL YEARS
(accrual basis of accounting)
Fiscal Year
2004 2005 2006
Governmental activities
Invested in capital assets, net of related debt $ 14,185,481 $ 16,171,687 $ 19,214,778
Restricted 2,189,395 7,131,515 5,642,284
Unrestricted 1,884,120 1,081,719 982,070
Total governmental activities net assets $ 18,258,996 $ 24,384,921 $ 25,839,132
Business-type activities
Invested in capital assets, net of related debt $ 5,500,764 $ 5,219,804 $ 6,572,396
Restricted 4,347,300 4,895,012 5,605,029
Unrestricted 3,119,902 4,224,393 3,186,512
Total business-type activities net assets $ 12,967,966 $ 14,339,209 $ 15,363,937
Total primary government
Invested in capital assets, net of related debt $ 19,686,245 $ 21,391,491 $ 25,787,174
Restricted 6,536,695 12,026,527 11,247,313
Unrestricted 5,004,022 5,306,112 4,168,582
Total primary government $ 31,226,962 $ 38,724,130 $ 41,203,069
Note: Net assets are not available for years prior to 2004
-75-
Table 2
Fiscal Year
2007 2008
$ 905,429 $ 1,119,820
1,202,529 1,199,463
1,344,124 1,675,926
268,040 331,749
235,425 153,026
424,709 515,558
4,380,256 4,995,542
858,726 823,088
1,297,307 1,226,374
75,268 142,520
2,231,301 2,191,982
$ 6,611,557 $ 7,187,524
$ 775,544 $ 733,709
85,887 129,521
5,700 3,050
317,112 856,725
2,967,450 342,520
4,151,693 2,065,525
692,890 651,821
1,118,401 1,008,729
170,004 212,891
4,664 146,172
1,906,378 489,075
3,892,337 2,508,688
$ 8,044,030 $ 4,574,213
$ (228,563) $ (2,930,017)
1,661,036 316,706
$ 1,432,473 $ (2,613,311)
-78-
CITY OF ALBERTVILLE, MINNESOTA
STATISTICAL SECTION (UNAUDITED)
CHANGES IN NET ASSETS - CONTINUED
LAST FIVE FISCAL YEARS
(accrual basis of accounting)
Fiscal Year
2004 2005 2006
General Revenues and Other Changes in Net Assets
General Revenues
Governmental activities
Taxes
Property taxes, levied for general purpose $ 1,411,631 $ 1,371,118 $ 1,661,756
Property taxes, levied for debt service 182,518 330,621 335,957
Tax increments 97,874 99,429 98,546
State aids 29,192 24,860 13,056
Grants and contributions not restricted to specific programs 70,310 32,423 13,717
Unrestricted investment earnings 26,757 136,150 258,786
Gain on sale of capital assets
Capital contributions 616,280
Transfers 525,000 336,081
Total governmental activities general revenues 2,343,282 1,994,601 3,334,179
Business-type activities
Unrestricted investment earnings 94,637 119,174 265,578
Transfers (525,000) (336,081)
Total business-type activities general revenues (430,363) 119,174 (70,503)
Total primary government $ 1,912,919 $ 2,113,775 $ 3,263,676
Change in Net Assets
Governmental activities $ 230,462 $ 2,569,905 $ (933,115)
Business-type activities 1,183,159 1,371,243 832,199
Total primary government $ 1,413,621 $ 3,941,148 $ (100,916)
Note: Changes in net assets are not available for years prior to 2004
-79-
CITY OF ALBERTVILLE, MINNESOTA
STATISTICAL SECTION (UNAUDITED)
FUND BALANCES OF GOVERNMENTAL FUNDS
LAST TEN FISCAL YEARS
Fiscal Year
1999 2000 2001 2002
General fund
Unreserved $ 389,362 $ 619,158 $ 1,017,834 $ 1,671,345
All other governmental funds
Reserved $ 436,948 $ 851,110 $ 863,706 $ 711,000
Unreserved, reported in:
Debt service funds (65,730) (33,449) (102,921) (29,259)
Special revenue funds 2,574,010 3,541,201 3,908,279 5,190,959
Capital project funds (20,678) 451,802 (1,241,383) (3,523,403)
Total all other governmental funds $ 2,924,550 $ 4,810,664 $ 3,427,681 $ 2,349,297
-81-
Table 3
Fiscal Year
2003
2004
2005
2006
2007
2008
$ 2,540,495 $ 2,222,944 $ 2,110,581 $ 1,549,004 $ 792,457 $ 859,636
$ 818,919 $ 1,334,022 $ 4,488,141 $ 4,121,164 $ 2,841,445 $ 2,826,007
13,276 2,465 (138,675) (457,216) 756,064 308,193
684,577 6,485,664 118,952 167,838 172,837
4,319,796 (3,164,897) 3,777,871 5,151,611 6,821,881 6,803,831
$ 5,836,568 $ 4,657,254 $ 8,246,289 $ 8,815,559 $ 10,587,228 $ 10,110,868
-82-
CITY OF ALBERTVILLE, MINNESOTA
STATISTICAL SECTION (UNAUDITED)
CHANGES IN FUND BALANCES OF GOVERNMENTAL FUNDS
LAST TEN FISCAL YEARS
Fiscal Year
1999 2000 2001 2002
Revenues
Taxes $ 763,388 $ 958,650 $ 1,365,415 $ 1,473,046
Licenses and permits 121,839 166,352 306,699 587,020
Intergovernmental 329,773 266,005 272,892 201,191
Charges for services 707,925 1,024,474 1,254,520 1,725,558
Fines and forfeitures 152
Special assessments 160,254 537,357 532,531 434,376
Interest on investments
Miscellaneous 369,237 315,139 378,759 166,140
Total revenues 2,452,568 3,267,977 4,110,816 4,587,331
Expenditures
General government 249,895 480,339 512,513 571,826
Public safety 343,922 219,975 336,287 822,875
Public works 206,985 392,248 382,172 314,353
Culture and recreation 252,807 134,191 144,149 218,974
Economic development 75,924 5,362 1,851 3,802
Miscellaneous 91,349 44,028 256,106 99,155
Capital Outlay 2,638,914 2,166,570 2,673,059 2,392,238
Debt service
Principal 265,000 217,617 561,793 838,122
Interest 56,793 167,887 238,143 248,245
Total expenditures 4,181,589 3,828,217 5,106,073 5,509,590
Excess (deficiency) of revenues
over (under) expenditures (1,729,021) (560,240) (995,257) (922,259)
Other fmancing sources (uses)
Transfers in 144,996 1,015,000 495,323
Bonds refunded
Proceeds from sale of bonds 2,595,387 2,673,094
Discount on long-term debt issued
Sale of capital assets 501 3,056 10,950 497,386
Transfers out (144,996) (1,015,000) (495,323)
Total other fmancing
sources (uses) 2,595,888 2,676,150 10,950 497,386
Net change in fund balances $ 866,867 $ 2,115,910 $ (984,307) $ (424,873)
Debt service as a percentage of
Noncapital expenditures 20.9% 23.2% 32.9% 34.8%
-83-
Table 4
Fiscal Year
2003 2004 2005 2006 2007 2008
$ 1,503,235 $ 1,690,224 $ 1,800,624 $ 2,055,430 $ 2,322,488 $ 2,690,024
691,839 572,230 683,448 487,132 283,287 386,564
98,229 93,419 82,564 167,769 717,556 129,294
2,819,799 1,309,145 1,395,634 1,416,203 2,150,160 878,486
2,500 3,414 3,702 3,450
717,145 396,856 901,138 1,191,863 691,833 847,075
26,757 136,150 367,427 399,565 327,292
90,792 233,034 692,264 733,236 240,929 346,078
5,921,039 4,324,165 5,695,236 6,422,762 6,809,268 5,604,813
568,405 611,495 1,070,698 925,032 849,643 1,023,497
564,671 669,509 768,887 1,080,046 1,122,988 1,110,041
646,296 404,311 386,964 582,576 563,455 691,311
165,619 120,081 215,322 217,908 246,507 274,167
118,265 130,735 98,603 59,069 96,550 124,140
94,881
2,313,324 4,807,388 2,429,661 5,394,555 4,741,146 795,402
868,229 247,800 585,000 725,000 765,000 1,155,000
215,659 263,238 267,953 392,992 401,882 490,660
5,555,349 7,254,557 5,823,088 9,377,178 8,787,171 5,664,218
365,690 (2,930,392) (127,852) (2,954,416) (1,977,903) (59,405)
213,496 1,361,270 2,422,374 4,142,869 2,134,050 643,157
(560,000)
3,245,552 2,100,000 3,700,000 3,235,000 560,000
(76,934) (24,690)
739,848 2,350 129,854
(213,496) (2,488,979) (2,664,704) (4,014,106) (2,481,189) (902,583)
3,985,400 972,291 3,383,086 128,763 2,993,025 (259,426)
$ 4,351,090 $ (1,958,101) $ 3,255,234 $ (2,825,653) $ 1,015,122 $ (318,831)
33.4% 15.7% 23.5% 20.2% 25.9% 31.4%
-84-
CITY OF ALBERTVILLE, MINNESOTA
STATISTICAL SECTION (UNAUDITED)
TAX CAPACITY, MARKET VALUE AND ESTIMATED ACTUAL VALUE OF TAXABLE PROPERTY
(Shown by year of tax collectability)
1999 2000 2001 2002
Taxable market value
Personal property $ 1,718,600 $ 2,049,601 $ 2,308,300 $ 2,672,400
Real estate 104,488,300 130,767,901 171,962,600 223,056,400
Total taxable market value $ 106,206,900 $ 132,817,500 $ 174,270,900 $ 225,728,800
Estimated actual value of taxable property n/a n/a $ 184,106,900 $ 248,910,400
Taxable market value as a percentage of
estimated actual value n/a % n/a % 94.66 % 90.69 %
Tax capacity
Personal property $ 59,530 $ 69,686 $ 78,482 $ 53,388
Real estate 1,500,003 1,883,767 2,716,513 2,652,109
Subtotal 1,559,533 1,953,453 2,794,995 2,705,497
Less: tax increment (100,259) (55,805) (120,835) (80,610)
Net tax capacity $ 1,459,274 $ 1,897,648 $ 2,674,160 $ 2,624,887
Tax levies
General $ 558,853 $ 669,611 $ 1,042,719 $ 1,175,394
Debt service 93,500 216,606 175,070 174,606
Total $ 652,353 $ 886,217 $ 1,217,789 $ 1,350,000
Tax capacity rate
General 38.297 % 35.286 % 38.992 % 44.779 %
Debt service 6.407 11.414 6.547 6.652
Total 44.704 % 46.701 % 45.539 % 51.431 %
Source: Wright County Auditorffreasurer Department
Note: Property in the county is reassessed annually.
Note: Information is not available prior to 2001 for the estimated actual value oftaxable property.
-85-
Table 5
2003 2004 2005 2006 2007 2008
$ 3,105,200 $ 3,393,700 $ 4,095,900 $ 4,307,400 $ 4,790,900 $ 4,496,300
290,313,400 386,668,400 469,824,100 550,847,200 627,206,200 676,886,400
$ 293,418,600 $ 390,062,100 $ 473,920,000 $ 555,154,600 $ 631,997,100 $ 681,382,700
$ 316,644,500 $ 417,609,000 $ 505,473,200 $ 596,039,800 $ 673,691,200 $ 722,043,500
92.66 % 93.40 % 93.76 % 93.14 % 93.81 % 94.37 %
$ 62,044 $ 67,808 $ 81,839 $ 86,069 $ 93,976 $ 88,151
3,422,532 4,641,059 5,694,619 6,680,766 7,600,714 . 8,257,927
3,484,576 4,708,867 5,776,458 6,766,835 7,694,690 8,346,078
(85,855) (93,274) (100,476) (94,563) (106,683) (90,688)
$ 3,398,721 $ 4,615,593 $ 5,675,982 $ 6,672,272 $ 7,588,007 $ 8,255,390
$ 1,347,817 $ 1,440,922 $ 1,461,040 $ 1,735,899 $ 2,009,558 $ 2,144,171
162,949 209,101 354,813 359,651 360,959 545,560
$ 1,510,766 $ 1,650,023 $ 1,815,853 $ 2,095,550 $ 2,370,517 $ 2,689,731
39.657 % 31.219 % 25.741 % 26.017 % 26.483 % 25.973 %
4.794 4.530 6.251 5.390 4.757 6.609
44.451 % 35.749 % 31.992 % 31.407 % 31.240 % 32.582 %
-86-
CITY OF ALBERTVILLE, MINNESOTA Table 6
STATISTICAL SECTION (UNAUDITED)
PROPERTY TAX CAPACITY RATES - DIRECT AND OVERLAPPING GOVERNMENTS
(PER $1,000 OF TAX CAPACITY IN 1999-2008)
Overlapping Rates
Year School School
Taxes District District
Payable City County No. 885 No. 728
1999 44.704 % 32.166 % 63.743 % 59.628 %
2000 46.701 31.929 58.877 55.814
2001 45.539 31.291 55.331 63.828
2002 51.431 40.268 37.911 45.945
2003 44.451 36.851 35.283 41.326
2004 35.749 35.624 35.205 30.937
2005 31.992 34.407 32.947 32.836
2006 31.407 32.561 42.859 35.941
2007 31.240 30.708 45.246 33.201
2008 32.582 31.643 46.180 32.338
Source: Wright County Auditorrrreasurer Department
Overlapping rates are those oflocal and county governments that apply to property owners within the City. Not all
overlapping rates apply to all City property owners (e.g. the rates for special districts apply only to the proportion of the
government's property owners whose property is located within the geographic boundaries of the special district).
-87-
CITY OF ALBERTVILLE, MINNESOTA
STATISTICAL SECTION (UNAUDITED)
PRINCIPAL TAXPAYERS
DECEMBER 31, 2008
2008
Percent
Tax of Total
Taxpayer Capacity Rank Tax Capacity
CPG Partners LP $ 970,238 1 11.75 %
CWE Albertville Crossing, LLC 253,418 2 3.07
William A. Hinks 91,788 3 1.11
We1come Furniture & Appliances 79,738 4 0.97
HGP Architectural Glass, Inc. 78,190 5 0.95
Albertville Investments, LLC 74,098 6 0.90
Albertville Plaza, LLC 73,776 7 0.89
Manchester II, LLC 49,052 8 0.59
Alshouse Properties, LLC 48,986 9 0.59
Albertville Strip Mall, LLC 46,542 10 0.56
Kauffinann & Kauffinann
Northern States Power Company
Fraser Building LP
Truss Manufacturing, Co.
Pilot Land Development, Co.
Albertville Leased House Association
Minnegasco, Inc.
Donald & Betty Barthel
Howard Larson
Totals $ 1,765,826 21.39 %
Source: Wright County AuditorlTreasurer Department
-88-
CITY OF ALBERTVILLE, MINNESOTA Table 8
STATISTICAL SECTION (UNAUDITED)
PROPERTY TAX LEVIES AND COLLECTIONS
LAST TEN FISCAL YEARS
(1) Percent
Collection Percentage Collection of Total
Fiscal Total of Current of Levy in subsequent Total Collections
Year Levy Year's Levy Collected years Collections to Levy
1999 $ 652,353 $ 646,124 99.05 % $ 6,229 $ 652,353 100.00 %
2000 886,217 865,384 97.65 20,833 886,217 100.00
2001 1,217,789 1,184,850 97.30 32,939 1,217,789 100.00
2002 1,350,000 1,317,240 97.57 32,760 1,350,000 100.00
2003 1,510,766 1,482,194 98.11 28,572 1,510,766 100.00
2004 1,650,023 1,620,234 98.19 25,490 1,645,724 99.74
2005 1,815,853 1,787,094 98.42 25,862 1,812,956 99.84
2006 2,095,550 2,029,562 96.85 44,746 2,074,308 98.99
2007 2,370,517 2,264,743 95.54 52,954 2,317,697 97.77
2008 2,689,731 2,615,661 97.25 2,615,661 97.25
Source: Wright County Auditor/Treasurer Department
(1) Includes state paid property tax credits.
-90-
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CITY OF ALBERTVILLE, MINNESOTA
STATISTICAL SECTION (UNAUDITED)
RATIOS OF GENERAL BONDED DEBT OUTSTANDING
LAST TEN FISCAL YEARS
Table 10
Less (1)
Amounts Percentage of
General Available in Net Estimated Actual
Fiscal Obligation Debt Service Bonded Value of Per
Year Bonds Funds Debt Taxable Property Capita
1999 $ 2,335,000 $ 3,683 $ 2,331,317 2.20 % 715
2000 4,725,000 399,364 4,325,636 3.26 1,195
2001 4,225,000 460,966 3,764,034 2.04 942
2002 3,470,000 333,915 3,136,085 1.26 694
2003 3,992,800 493,001 3,499,799 1.11 702
2004 3,810,000 557,445 3,252,555 0.78 606
2005 3,285,000 132,660 3,152,340 0.62 561
2006 2,775,000 293,629 2,481,371 0.42 424
2007 5,515,000 449,580 5,065,420 0.75 852
2008 5,245,000 511,170 4,733,830 0.66 793
(1) Percentages for 1999-2000 are based on Total Taxable Market Value. Estimated Actual Value of Taxable Property
was not available for those years.
Note: Details regarding the City's outstanding debt can be found in the notes to the fmancial statements.
See the Schedule of Demographic and Economic Statistics on page 98 for population data.
See the Schedule of Tax Capacity, Market Value and Estimated Actual Value of Taxable Property for property value
-92-
CITY OF ALBERTVILLE, MINNESOTA
STATISTICAL SECTION (UNAUDITED)
COMPUTATION OF DIRECT AND OVERLAPPING DEBT
DECEMBER 31, 2008
Table 11
Gross
Bonded
Debt Used
For Net Debt
Calculation
Percentage
Applicable to
District
Amount
of
Net Debt
Applicable
to District
Direct Debt
City of Albertville
$ 5,245,000
100.00 %
$ 5,245,000
Overlapping Debt
School District #885
School District #728
Wright County
Total Overlapping Debt
$ 217,630,000 27.33 % $ 59,468,678
327,810,000 2.50 8,189,965
67,035,000 6.15 4,121,851
$ 612,475,000 11.72 % $ 71,780,494
$ 617,720,000 12.47 % $ 77,025,494
Total Direct and Overlapping Debt
Sources: Market value data used to estimate applicable percentages provided by the Wright County
Auditor/Treasurer department. Debt outstanding data was provided from the same source.
Note: Overlapping governments are those that coincide, at least in part, with the geographic boundaries of the City. This
schedule estimates the portion of the outstanding debt of those overlapping governments that is borne by the residents and
businesses of the City. This process recognized that, when considering the government's ability to issue and repay long-term
debt, the entire debt burden borne by the residents and businesses should be taken into account. However, this does not
imply that every taxpayer is a resident, and therefore responsible for repaying the debt, of each overlapping government.
* The percentage of overlapping debt applicable is estimated using taxable market property values. Applicable
percentages were estimated by determining the portion of the county's taxable market value that is within the City's
boundaries and dividing it by the county's total taxable market value.
-93-
CITY OF ALBERTVILLE, MINNESOTA
STATISTICAL SECTION (UNAUDITED)
LEGAL DEBT MARGIN INFORMATION
LAST TEN FISCAL YEARS
Fiscal Year
1999
2000
2001
2002
Debt limit (1)
$ 2,124,138
$ 2,656,350
$ 3,485,418
$ 4,514,576
Total net debt applicable to limit
Legal debt margin
$ 2,124,138
$ 2,656,350
$ 3,485,418
$ 4,514,576
Total net debt applicable to the limit
as a percentage of debt limit
(1) The debt limit for years 1999-2007 is 2 percent and for the year 2008 is 3 percent.
(2) All of the City's general obligation debt are paid from special assessments and not subject to the limit.
Note: Under state law, the City's outstanding general obligation debt should not exceed 3 percent of the market value of
taxable property. Prior to 2008, state law provided that general obligation debt should not exceed 2 percent. By law, the
general obligation debt subject to the limitation may be offset by amounts set aside for the extinguishment of those obligations.
-94-
Fiscal Year
Table 12
2003
$ 5,868,372
$ 5,868,372
2004
$ 7,801,242
$ 7,801,242
2005
2006
$ 9,478,400
$ 11,103,092
$ 9,478,400
$ 11,103,092
2007
$ 12,639,942
$ 12,639,942
Legal Debt Margin Calculation for Fiscal Year 2008
Taxable market value
Debt limit (3% of market value)
Debt applicable to limit
General obligation bonds (2)
Less: amount available in
debt service funds
Total net debt applicable to limit
Legal debt margin
-95-
2008
$ 20,441,481
$ 20,441,481
$ 681,382,700
$ 20,441,481
$ 20,441,481
CITY OF ALBERTVILLE, MINNESOTA Table 13
STATISTICAL SECTION (UNAUDITED)
PLEDGED-REVENUE COVERAGE
LAST TEN FISCAL YEARS
General Obligation Revenue Bonds
(1) Net
Fiscal Gross (2) Revenue Debt Service
Year Revenue Expenses Available Principal Interest Coverage
1999 $ 255,646 $ 118,277 $ 137,369 $ 59,559 $ 40,371 1.37
2000 303,304 122,637 180,667 61,490 38,441 1.81
2001 314,294 157,636 156,658 66,636 33,295 1.57
2002 420,509 140,367 280,142 62,741 37,189 2.80
2003 428,604 157,720 270,884 67,878 32,052 2.71
2004 501,448 170,164 331,284 435,151 114,980 0.60
2005 730,659 240,082 490,577 242,500 100,260 1.43
2006 749,133 213,774 535,359 404,925 242,745 0.83
2007 740,802 329,305 411,497 427,435 226,666 0.63
2008 699,715 317,801 381,914 455,027 204,259 0.58
Tax Increment Bonds
Revenue from Revenue from
Fiscal Special Property Debt Service
Year Assessments Taxes Principal Interest Coverage
1999 $ 23,477 $ 11,243 $ 95,000 $ 15,533 0.31
2000 23,004 11,061 30,000 12,645 0.80
2001 24,690 10,350 30,000 10,401 0.87
2002 23,762 10,083 30,000 9,736 0.85
2003 22,828 5,540 30,000 8,236 0.74
2004 15,305 5,396 30,000 6,794 0.56
2005 20,328 5,537 25,000 5,369 0.85
2006 19,177 10,410 25,000 4,076 1.02
2007 10,913 14,762 25,000 2,727 0.93
2008 312 30,000 810 0.01
(1) Including interest and other income
(2) Excluding depreciation and interest on bonds
-96-
CITY OF ALBERTVILLE, MINNESOTA Table 13
STATISTICAL SECTION (UNAUDITED)
PLEDGED-REVENUE COVERAGE - CONTINUED
LAST TEN FISCAL YEARS
Lease Revenue Bonds
Revenue from
Fiscal Property Debt Service
Year Taxes Principal Interest Coverage
1999 $ $ $ 1,100
2000 83,062 46,762 1.78
2001 81,432 30,000 48,300 1.04
2002 78,274 30,000 46,912 1.02
2003 74,416 30,000 45,288 0.99
2004 60,724 35,000 45,276 0.76
2005 214,921 35,000 124,162 1.35
2006 210,146 190,000 284,409 0.44
2007 222,934 245,000 276,343 0.43
2008 402,771 295,000 290,485 0.69
Capital Leases
Revenue from
Fiscal Lease Debt Service
Year Payments Principal Interest Coverage
1999 $ $ $
2000
2001 27,567 21,793 5,774 1.00
2002 27,567 23,122 4,445 1.00
2003 27,567 24,533 3,034 1.00
2004 27,567 26,029 1,538 1.00
2005
2006
2007
2008
-97-
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Employer
CITY OF ALBERTVILLE, MINNESOTA Table 15
PRINCIPAL EMPLOYERS
CURRENT YEAR AND NINE YEARS AGO (1)
2008
Percentage
of Total City
Employees Rank Employment
800 1 38.10 %
275 2 13.10
75 3 3.57
55 4 2.62
40 5 1.90
20 6 0.95
20 7 0.95
20 8 0.95
18 9 0.86
17 10 0.81
2,100 * 63.81 %
Outlets at Albertville
ISO No. 885, St. Michael-Albertville
HGP Industries InC
Truss Manufacturing Co.
FraserSteele Co.
OJ's Heating & Air Conditioning
Don's Bus Service
Omann Brothers
Otsego Tool & Engineering Inc.
Radiation Tool & Engineering Inc.
Total
Source: City of Albertville
* This is an estimation provided by the City.
(1) Information for nine years ago was not available. This table will be updated on a go-forward basis.
-99-
CITY OF ALBERTVILLE, MINNESOTA
CAPITAL ASSET STATISTICS BY FUNCTION
DECEMBER 31, 2008
Table 18
Function
2008
Public Safety
Fire stations
Stations
Public Works
Highways and streets
Streets (miles)
Street lights
Traffic signals
Culture and recreation
Parks division
Parks
Parks acreage
Arena/Civic Center
Baseball diamonds
Basketball courts
Bike trails (miles)
Hockey rinks/outdoor
Softball diamonds
Tennis courts
Volleyball courts
Utilities
Water
Miles of water main
Sewer
Miles of sanitary sewer
Lift stations
Maximum daily treatment capacity (gallons)
Storm sewer
Miles of storm sewer
36
417
5
11
120
I
5
5
5
2
1
5
1
45
34
9
929,000
26
Source: City of Albertville
Note: No capital asset indicators are available for the general government function.
Note: Information not available prior to 2008. This table will be updated on a go-forward basis.
-102-