2008 Management Letter
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
CITY OF ALBERTVILLE
Wright County, Minnesota
TABLE OF CONTENTS
REPORT ON MATTERS IDENTIFIED AS A RESULT OF
THE AUDIT OF THE FINANCIAL STATEMENTS ......................................................... 1
MATERIAL WEAKNESS................. ......... ........ .............. ..... ............ ................ ....... ....... ......... 3
SIGNIFICANT DEFICIENCy......... ..... ...... ................ ... ....... ..... ..... ..... ...... .... ............. .......... .,. 4
CONTROL DEFICIENCIES. ..... .......... ....... ............ .... ... .... ..... ... ... ......... ..... ....... ........ ........ ..... 5
LEGAL COMPLIANCE FINDINGS ................ ..... ........... ............. .......... ....................... ........ 6
REQUIRED COMMUNICATION .......................................................................................... 7
FINANCIAL ANALYSIS.. .......................... ................ .......... .... ...... ..... ..... ..... ... ....... .... .... ......... 10
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
~DV
Expert advice. When you need it. SM
REPORT ON MATTERS IDENTIFIED AS A RESULT OF
THE AUDIT OF THE FINANCIAL STATEMENTS
April 6, 2009
Honorable Mayor and Members
of the City Council
City of Albertville
Albertville, Minnesota
In planning and performing our audit of the financial statements of the City of Albertville,
Minnesota, as of and for the year ended December 31,2008, in accordance with U.S. generally
accepted auditing standards, we considered the City's internal control over financial reporting
(internal control) as a basis for designing our auditing procedures for the purpose of expressing
our opinion on the financial statements, but not for the purpose of expressing an opinion on the
effectiveness of the City's internal control. Accordingly, we do not express an opinion on the
effectiveness of the City's internal control.
Our consideration of internal control was for the limited purpose described in the preceding
paragraph and would not necessarily identify all deficiencies in internal control that might be
significant deficiencies or material weaknesses. The deficiencies in internal control we
identified are stated within this letter.
A control deficiency exists when the design or operation of a control does not allow management
or employees, in the normal course of performing their assigned functions, to prevent or detect
misstatements on a timely basis. A significant deficiency is a control deficiency, or combination
of control deficiencies, that adversely affects the City's ability to initiate, authorize, record,
process or report financial data reliably in accordance with U.S. generally accepted accounting
principles such that there is more than a remote likelihood that a misstatement ofthe City's
financial statements that is more than inconsequential will not be prevented or detected by the
City's internal control.
A material weakness is a significant deficiency, or combination of significant deficiencies, that
results in more than a remote likelihood that a material misstatement of the financial statements
will not be prevented or detected by the City's internal control.
1
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
~DV
The accompanying memorandum includes financial analysis and recommendations for
improvement of accounting procedures and internal control measures that came to our attention
as a result of our audit of the financial statements of the City for the year ended December 31,
2008. The matters discussed herein were considered by us during our audit and they do not
modify the opinion expressed in our Independent Auditor's Report dated April 6, 2009, on such
statements.
This communication is intended solely for the information and use of management and the City
Council and is not intended to be and should not be used by anyone other than these specified
parties.
~~.JJ~uJ~, ~,~.
KERN, DEWENTER, VIERE, LTD.
Minneapolis, Minnesota
2
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
CITY OF ALBERTVILLE
Wright County, Minnesota
MATERIAL WEAKNESS
December 31, 2008
PRIOR PERIOD ADJUSTMENTS
Prior period adjustments were done to correct the 2007 financial statements.
An adjustment was done to the General Fund to adjust the beginning due from other
governments for an entry that had not been subsequently written off. The beginning balance of
contracts payable was adjusted for the closed Capital Projects Fund, as was the beginning
accounts receivable and related allowance for doubtful accounts in this Fund. The City
determined they would no longer receive the outstanding balance relating to developer
receivables. The contracts payable balance was adjusted as the project was not finished, thus the
City no longer owed the remaining balance on the contract.
Adjustments were made to the beginning accounts payable balance in the Sewer Fund.
Adjustments were also required for the beginning accounts receivable balances in the Sewer
Fund, Water Fund and the Storm Water Fund.
3
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
CITY OF ALBERTVILLE
Wright County, Minnesota
SIGNIFICANT DEFICIENCY
December 31, 2008
LACK OF SEGREGATION OF ACCOUNTING DUTIES
During the year ended December 31, 2008, the City had a lack of segregation of accounting
duties due to a limited number of office employees. This lack of segregation of accounting
duties can be demonstrated in the following areas, which is not intended to be an all inclusive
list:
. The Finance Director is able to receive cash receipts at the front window and has
read/write access to the general ledger.
. The Finance Director verifies purchase orders to invoices and can also enter
disbursements into the accounts payable module. Additionally, the Finance Director
processes accounts payable, prints and mails checks and reconciles the bank accounts.
. The Finance Director posts utility billing information into the general ledger, has the
ability to make adjustments to bills and maintains customers and rates.
. The Administrative Assistant II manually enters some meter readings, calculates the
utility billings, maintains customer accounts, enters credit card payments from the
counter, mails the utility bills, enters the billing payments and maintains the billing
register.
. The Finance Director maintains control of checks, sets up/maintains employee payroll
records, processes payroll, posts payroll to the general ledger, prepares checks, issues
checks or direct deposits, reconciles the bank account, prepares the payroll taxes,
prepares all W -2s, as well as maintains all data files and the payroll program.
. The Building Technician fills out permit fees schedules, has access to receive payments
and scans all permits and/or inspections into a house file.
. The Finance Director enters all accounts receivable invoices, maintains the accounts
receivable billings, reports all outstanding bills to the City Council and posts all payments
to the general ledger.
. The Administrative Assistant II collects fines and fees, sends out all account receivable
invoices, receives payments and enters them into the POS module.
We recommend management, along with the City Council, remain aware of this situation and
continually monitor the accounting system including changes that occur.
4
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
CITY OF ALBERTVILLE
Wright County, Minnesota
CONTROL DEFICIENCIES
December 31,2008
IMPROVE PROCEDURES FOR MAINTAINING CAPITAL ASSET LISTING
During our audit, we noted the City's capital asset listing is not being maintained properly. We
noted the listing was not updated to remove an asset identified during the fiscal year 2007 audit
as an asset that had previously been disposed. In addition, we noted a bobcat was on the list that
had been traded in three years ago and the new bobcat was not on the listing.
We recommend the City correct these mistakes and more closely monitor the asset listing.
REQUIRE APPROVAL AND BACKUP DOCUMENTATION FOR JOURNAL ENTRIES
During our audit, we found all of the journal entries tested lacked supporting documentation and
formal approval. Not having these processes in place could jeopardize the integrity of the
financial statements.
As the City has the significant deficiency relating to the lack of segregation of accounting duties,
there is the risk that not all significant areas ofthe City's financial reporting process are
protected by adequate internal control.
We recommend the City attach documentation to all journal entries, and have the Finance
Director indicate her approval by signing all journal entries provided by the City's contracted
accounting services provider.
5
I
I
I
I
I
I
II
I
I
I
I
I
I
I
I
I
I
I
I
CITY OF ALBERTVILLE
Wright County, Minnesota
LEGAL COMPLIANCE FINDINGS
December 31, 2008
PUBLIC PURPOSE EXPENDITURES
According to Attorney General Publications 442a-17, January 17, 1938; 59a-22, November 23,
1966; 270-D, August 12, 1977; and 174E, a city must refrain from paying for Christmas parties
and other employee social events, unless the celebrations are a form of compensation, as
described in the city's personnel manual.
During our audit, we noted the City paid for an employee event. In addition, it was noted that
the City made donations to an entity that serves a private purpose rather than a public purpose.
We recommend the City refrain from paying for such activities.
UPDATE COLLATERAL ASSIGNMENT AGREEMENT
Minnesota Statutes 118A.03, subd. 4 requires the written assignment shall recite that, upon
default, the financial institution shall release to the government entity on demand, free of
exchange or any other charges, the collateral pledged.
It was noted during our legal compliance audit, one of the City's collateral assignment
agreements did not require the release of collateral upon default.
We recommend the City update its assignment agreements in order to be in compliance with the
Minnesota Statutes.
6
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
CITY OF ALBERTVILLE
Wright County, Minnesota
REQUIRED COMMUNICATION
December 31,2008
We have audited the financial statements of the City for the year ended December 31, 2008, and
have issued our report dated April 6, 2009. Professional standards require that we provide you
with the following information related to our audit.
OUR RESPONSIBILITY UNDER U.S. GENERALLY ACCEPTED AUDITING
STANDARDS
As stated in our engagement letter, our responsibility, as described by professional standards, is
to express an opinion about whether the financial statements prepared by management with your
oversight are fairly presented, in all material respects, in conformity with U.S. generally accepted
accounting principles. Our audit of the financial statements does not relieve you or management
of your responsibilities. Our responsibility is to plan and perform our audit to obtain reasonable,
but not absolute, assurance that the financial statements are free of material misstatement. As
part of our audit, we considered the internal control of the City. Such considerations were solely
for the purpose of determining our audit procedures and not to provide any assurance concerning
such internal control. Weare responsible for communicating significant matters related to the
audit that are, in our professional judgment, relevant to your responsibilities in overseeing the
financial reporting process. However, we are not required to design procedures specifically to
identify such matters.
As part of obtaining reasonable assurance about whether the City's financial statements are free
of material misstatement, we performed tests of its compliance with certain provisions of laws,
regulations, contracts and grant agreements, noncompliance with which could have a direct and
material effect on the determination of financial statement amounts. However, providing an
opinion on compliance with those provisions was not an objective of our audit.
PLANNED SCOPE AND TIMING OF THE AUDIT
We performed the audit according to the planned scope and timing previously communicated to
you.
QUALITATIVE ASPECTS OF ACCOUNTING PRACTICES
Management is responsible for the selection and use of appropriate accounting policies. In
accordance with the terms of our engagement letter, we will advise management about the
appropriateness of accounting policies and their application. The significant accounting policies
used by the City are described in Note 1 to the financial statements. No new accounting policies
were adopted and the application of existing policies was not changed during 2008. We noted no
transactions entered into during the year for which there is a lack of authoritative guidance or
consensus. . There are no significant transactions that have been recognized in the financial
statements in a different period than when the transaction occurred.
7
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
CITY OF ALBERTVILLE
Wright County, Minnesota
REQUIRED COMMUNICATION
December 31, 2008
QUALITATIVE ASPECTS OF ACCOUNTING PRACTICES
Accounting estimates are an integral part of the financial statements prepared by management
and are based on management's knowledge and experience about past and current events and
assumptions about future events. Certain accounting estimates are particularly sensitive because
of their significance to the financial statements and because of the possibility that future events
affecting them may differ significantly from those expected. The most sensitive estimates
affecting the financial statements were:
Depreciation - The City is currently depreciating its capital assets over their estimated
useful lives, as determined by management, using the straight-line method.
Expense Allocation - Certain expenses are allocated to functions based on an estimate of the
benefit to that particular function. Examples are salaries, benefits and supplies.
We evaluated the key factors and assumptions used to develop the above estimates in
determining they are reasonable in relation to the financial statements taken as a whole.
The disclosures in the financial statements are neutral, consistent and clear.
DIFFICUL TIES ENCOUNTERED IN PERFORMING THE AUDIT
We encountered no difficulties in dealing with management in performing and completing our
audit.
CORRECTED AND UNCORRECTED MISSTATEMENTS
Professional standards require us to accumulate all known and likely misstatements identified
during the audit, other than those that are trivial, and communicate them to the appropriate level
of management. There were uncorrected misstatements related to Market Value Credit revenues.
Management has determined the effect is immaterial both individually and in the aggregate, to
the financial statements taken as a whole.
DISAGREEMENTS WITH MANAGEMENT
For purposes ofthis letter, professional standards define a disagreement with management as a
financial accounting, reporting or auditing matter, whether or not resolved to our satisfaction that
could be significant to the financial statements or the auditor's report. We are pleased to report
that no such disagreements arose during the course of our audit.
MANAGEMENT REPRESENTATIONS
We requested certain representations from management which were provided to us in the
management representation letter.
8
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
CITY OF ALBERTVILLE
Wright County, Minnesota
REQUIRED COMMUNICATION
December 31,2008
MANAGEMENT CONSULTATIONS WITH OTHER INDEPENDENT ACCOUNT ANTS
In some cases, management may decide to consult with other accountants about auditing and
accounting matters, similar to obtaining a "second opinion" on certain situations. If a
consultation involves application of an accounting principle to the City's financial statements or
a determination of the type of auditor's opinion that may be expressed on those statements, our
professional standards require the consulting accountant to check with us to determine that the
consultant has all the relevant facts. Weare not aware of any consultations by the City's
management with other accountants during the course of our audit.
OTHER ISSUES
We generally discuss a variety of matters, including the application of accounting principles and
auditing standards, with management each year prior to retention as the City's auditors.
However, these discussions occurred in the normal course of our professional relationship and
our responses were not a condition to our retention.
OTHER INFORMATION IN DOCUMENTS CONTAINING AUDITED FINANCIAL
STATEMENTS
We have not reviewed, and it is our understanding, that no other published documents exist that
contain audited financial statement information, for which we are currently auditing. As stated
in our engagement letter, if you publish or reproduce the financial statements or make reference
to our Firm name in relation to such documents, you agree to provide us with a copy of the final
reproduced material for our approval before it is distributed.
9
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
CITY OF ALBERTVILLE
Wright County, Minnesota
FINANCIAL ANALYSIS
December 31, 2008
The following pages provide graphic representation of select data pertaining to the financial
position and operations of the City for the past five years. Our analysis of each graph is
presented to provide a basis for discussion of past performance and how implementing certain
changes may enhance future performance. We suggest you view each graph and document if our
analysis is consistent with yours. A subsequent discussion of this information should be useful
for planning purposes.
GENERAL FUND
General Fund revenues increased from $ 3,166,483 in 2007 to $ 3,329,558 in 2008. Property tax
revenues increased 11.4% from 2007 and totaled $ 2,074,327. This was primarily a result in
increased levy. Licenses and permits increased $ 103,277, or 36.5%, and totaled $ 386,564. The
City received more revenue from building permits in 2008 relating to town homes and Emma
Crumbies permits. Charges for services revenues decreased 12.0% to $ 517,561. This decrease
reflects a decrease in developer fees which is directly related to the slow down in development.
Special assessment revenue of $ 40,855 relates to utility connection fees for the development of a
commercial lot. In prior years, there has been no special assessment revenue. Miscellaneous
revenue decreased $ 62,790, or 25.8%. This decrease is largely due to the decrease in interest
earned on investments as a result ofthe declining market rates.
The graphs below and on the following page present the General Fund revenues by source in a
graph and pie chart formats.
I General Fund Revenuesl
$2,000,000
$1,750,000
$1,500,000
$1,250,000
$1,000,000
$750,000
$500,000
$250,000
$-
$3,500,000
$3,250,000
$3,000,000
$2,750,000
$2,500,000
$2,250,000
III Miscellaneous
. Special Assessments
D Intergovernmental
. Charges for Services
. Licenses and Permits
DTaxes
2004
$103,756
2005
$412,179
2006 2007 2008
$363,279 $243,747 $180,957
40,855
115,528 189,669 129,294
645,272 587,864 517,561
487,132 283,287 386,564
1,620,927 1,861,916 2,074,327
89,689
145,171
572,230
1,409,832
77,706
236,136
683,448
1,370,573
10
I
I
CITY OF ALBERTVILLE
Wright County, Minnesota
I
FINANCIAL ANALYSIS
December 31,2008
I
GENERAL FUND
I
12008 General Fund Revenuesl
I
I
Taxes
62%
Licenses and Permits
12%
I
Intergovernmental
4%
I
Charges for Services
16%
I
Miscellaneous
5%
Special Assessments
1%
I
I
12007 General Fund Revenuesl
I
I
Taxes
58%
Licenses and Permits
9%
I
Intergovernmental
6%
I
I
Charges for Services
19%
I
Miscellaneous
8%
I
11
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
GENERAL FUND
CITY OF ALBERTVILLE
Wright County, Minnesota
FINANCIAL ANALYSIS
December 31,2008
General Fund expenditures decreased from $ 3,188,617 in 2007 to $ 2,878,828 in 2008, which
represents a change of9.7%. For governmental fund types, capital outlay items are included in
total expenditures. For 2007, capital outlay expenditures totaled $ 477,948 compared to $ 31,636
in 2008. Without taking into consideration capital outlay, total General Fund expenditures
increased 5.0%. Both public works and park and recreation experienced increased activity.
Public works increased $ 86,944 due to additional PERA expenses for temporary employees and
an increase in street maintenance activities including seal coating and street overlayment. Park
and recreation expenditures increased $ 27,009 or 14.6%, from the prior year as a result of an
increase in salaries. General government expenditures decreased $ 376,576, or 29.6%, from the
prior year due to a land purchase in the prior year. Public safety decreased due to a decrease in
salary expenditures compared to 2007. A graph depicting the expenditures for the General Fund
for each ofthe past five years is illustrated below.
$1,600,000
$1,400,000
$1,200,000
$1,000,000
$800,000
$600,000
$400,000
$200,000
. General Government
. Public Safety
D Public Works
lJ Park and Recreation
. Economic Development
III Miscellaneous
I General Fund Expendituresl
$-
2004
$682,274
676,787
407,567
158,140
52,783
27,567
2005
$1,083,743
787,894
425,733
121,166
3,219
2006
$935,828
1,582,591
605,471
173,026
4,322
2007
$1,270,775
1,157,956
550,752
184,585
24,549
2008
$894,199
1,123,449
637,696
211,594
11,890
The following page presents the expenditures for 2008 and 2007 using a pie chart design.
12
I
I
I
I
I
CITY OF ALBERTVILLE
Wright County, Minnesota
FINANCIAL ANALYSIS
December 31,2008
GENERAL FUND
12008 General Fund Expendituresl
I
I
I
Park and Recreation
7%
Economic
Development
1%
Public Works
22%
General Government
31%
I
I
I
I
I
Public Safety
39%
12007 General Fund Expendituresl
Park and Recreation
6%
Economic
Development
1%
I
Public Works
17%
General Government
40%
I
I
I
I
I
Public Safety
36%
13
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
CITY OF ALBERTVILLE
Wright County, Minnesota
FINANCIAL ANALYSIS
December 31, 2008
GENERAL FUND
The graph below shows the overall trend of the General Fund balance and the cash and
investment balance for the last five years. The Capital Outlay Reserve Fund balance is also
included for comparison purposes since the City began recording more capital outlay related
purchases there in recent years. The cash and investment balance at December 31, 2008 was
$ 775,919. This is a decrease of$ 69,844 from last year. The balance has decreased $ 1,528,214
since 2004. The Fund balance has also shown this decreasing trend, ending in 2008 at
$ 859,636, a decrease of$ 1,363,308 since 2004. Due to an increase of revenues and a decrease
of expenditures in 2008, the General Fund balance has increased $ 77,978, or 10.0%, from 2007
to 2008.
In December of2004, the Office of the State Auditor issued a Statement of Position
recommending cities maintain an unreserved fund balance of approximately 35%-50% of fund
operating revenues or no less than five months of operating expenditures. The City's ending
fund balance should be reviewed in conjunction with this Statement of Position and internal City
fund balance policies to determine ifit is sufficient to meet the City's specific operations and
cash flow needs.
I General Fundi
$3,500,000
$1,500,000
$3,000,000
$2,500,000
$2,000,000
$1,000,000
$500,000
$781,658
$859,636
$-
2004
2005
2006
2007*
2008
[=:J General Fund Balance _ Capital Outlay Reserve Fund -+- General Fund Cash and Investments
* Restated
14
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
CITY OF ALBERTVILLE
Wright County, Minnesota
FINANCIAL ANALYSIS
December 31,2008
GENERAL FUND
The graph below shows the budget to actual results for the General Fund revenue by source. In
total, actual revenues were greater than the budget by $ 33,180.
When preparing the budget, the City budgets for property taxes at the amount the levy is set for;
however, the state pays a portion of the levy to the City in the form of Market Value Credit aid,
thereby reducing the amount actually levied against the property owners. For 2008, the amount
of the Market Value Credit was $ 48,436. This explains the variance in the intergovernmental
category and a portion of the variance in the property taxes category. The remaining difference
in property tax revenue is the result of a significant increase in delinquent property taxes for
2008. Charges for services revenue was under budget by $ 50,696 due to a decrease in
development fees. Special assessment revenue was not budgeted by the City in 2008 as this type
of revenue has not been received in the General Fund before. Miscellaneous revenue was over
budget due to the receipt of unanticipated reimbursements of approximately $106,000 for
developer bills.
12008 Revenues Budget and Actual\
$2,500,000
$500,000
$2,000,000
$1,500,000
$1,000,000
$-
Taxes
Licenses and Intergovernmental Charges for
Permits Services
Special
Assessments
Miscellaneous
.. Budget
.. Actual
15
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
CITY OF ALBERTVILLE
Wright County, Minnesota
FINANCIAL ANALYSIS
December 31, 2008
GENERAL FUND
The graph below shows the budget to actual results for the General Fund expenditures by
department. Overall, the City was under budget by $ 437,550. The largest variations were in the
general government and public safety departments, with variances of$ 225,607 and $ 204,734,
respectively. The variance in both the general government department and the public safety
departments were due to the City budgeting for capital outlay, the majority of which the City did
not expend.
12008 Expenditures Budget and Actuall
$200,000
$1,400,000
$1,200,000
$1,000,000
$800,000
$600,000
$400,000
$-
General Government
Public Safety
Public Works
Park and Recreation
Economic
Development
. Budget
. Actual
16
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
CITY OF ALBERTVILLE
Wright County, Minnesota
FINANCIAL ANALYSIS
December 31,2008
SEWER FUND
The following graph provides a history of operating income for the past five years for the Sewer
Fund. The yellow bar represents a true measurement of operations to be used as a factor in
determining whether sewer rates are sufficient to cover operating costs. As the graph indicates,
rates for the past five years were sufficient to cover operating costs, which includes depreciation of
fixed assets. Revenues that are sufficient to cover operating costs, including depreciation, allow
for an accumulation of cash to help fund replacement of depreciable assets.
I Sewer Fundi
$800,000
$700,000
$100,000
2004
$495,645
335,797
159,848
325,481
2005 2006 2007 2008
$699,424 $622,660 $692,890 $650,703
413,803 510,532 628,379 620,711
285,621 112,128 64,511 29,992
459,342 408,886 363,585 332,902
$600,000
$500,000
$400,000
$300,000
$200,000
$-
III Operating Revenues
III Operating Expenses
o Operating Income
o Operating Income Without Depreciation
17
I
I
CITY OF ALBERTVILLE
Wright County, Minnesota
I
I
I
I
FINANCIAL ANALYSIS
December 31,2008
WATER FUND
I
I
I
I
I
I
I
I
Operating revenues, excluding Water Access Charges (W AC) fees, for the Water Fund
experienced a 12.0% decrease from $ 290,905 in 2007 to $ 256,102 in 2008. Operating expenses
increased 9.8% from $ 193,064 in 2007 to $ 211,982 in 2008. The Water Fund has shown
operating income in all of the years presented; however, operating income decreased $ 53,055
from 2007 to 2008. While the rates being charged in this Fund are able to cover all operating
expenses including depreciation, we recommend the City continue to review these rates and the
operations of this Fund to continue profitable operations.
Iwater Fundi
$350,000
$300,000
$50,000
2004
$250,026
117,010
2005
$242,873
164,850
2006
$273,548
150,249
2007
$290,905
193,064
2008
$256,102
211,982
$250,000
$200,000
$150,000
$100,000
$-
.. Operating Revenues, Net of Joint Powers Portion
. Operating Expenses, Net of Joint Powers
Reimbursement
D Operating Income
o Operating Income Withont Depreciation
133,016
148,948
78,023
93,955
123,299
146,920
97,841
127,262
44,120
74,207
I
I
I
I
I
18
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
CITY OF ALBERTVILLE
Wright County, Minnesota
FINANCIAL ANALYSIS
December 31, 2008
MARKET VALUE, TAX CAPACITY AND TAX CAPACITY RATES
The graphs below and on the following page provide significant information about the growth
experienced by the City to help you continue to analyze your tax rate position.
The graph below depicts market value of all taxable property within the City limits, along with
tax capacity generated by such growth. As is evident from the graph, property market value
has increased from $ 390,062,100 in 2004 to $ 682,831,708 in 2008. During the same time, tax
capacity has increased from $ 4,615,593 in 2004 to $ 8,370,593 in 2008.
$735,000,000
$700,000,000
$665,000,000
$630,000,000
$595,000,000
$560,000,000
$525,000,000
$490,000,000
$455,000,000
~ $420,000,000
0;
:> $385,000,000
~
~ $350,000,000
::E $315,000,000
$280,000,000
$245,000,000
$210,000,000
$175,000,000
$140,000,000
$105,000,000
$70,000,000
$35,000,000
$-
ITax Capacity and Market valuel
2004
2005
2007
$9,000,000
$8,000,000
$7,000,000
$6,000,000
$5,000,000 9
'g
g.
u
$4,000,000 ><
..
E-<
$3,000,000
$2,000,000
$1,000,000
$-
2008
2006
I . Market Value
. Tax Capacity I
19
I
I
I
I
II
I
I
I
I
I
I
I
I
I
I
I
I
I
I
CITY OF ALBERTVILLE
Wright County, Minnesota
FINANCIAL ANALYSIS
December 31, 2008
MARKET VALUE, TAX CAPACITY AND TAX CAPACITY RATES
40,000
30,000
20,000
!Tax Capacity Ratel
135,7921
2004
2005
2007
2008
2006
20