2015-12-31 Final CAFR
Comprehensive
Annual Financial Report
For the year ended December 31, 2015
City of Albertville, Minnesota
THIS PAGE IS LEFT BLANK
INTENTIONALLY
CITY OF ALBERTVILLE, MINNESOTA
COMPREHENSIVE ANNUAL FINANCIAL REPORT
FOR THE FISCAL YEAR ENDED
DECEMBER 31, 2015
ADAM NAFSTAD - CITY ADMINISTRATOR
TINA LANNES - FINANCE DIRECTOR
PREPARED BY
DEPARTMENT OF FINANCE
Member of the Government Finance Officers’ Association
Of the United States and Canada
THIS PAGE IS LEFT BLANK
INTENTIONALLY
CITY OF ALBERTVILLE, MINNESOTA
COMPREHENSIVE ANNUAL FINANCIAL REPORT
TABLE OF CONTENTS
FOR THE YEAR ENDED DECEMBER 31, 2015
Page No.
INTRODUCTORY SECTION
Letter of Transmittal from City Administratorand Finance Director5
Certificate of Achievement of Excellence in Financial Reporting9
Organization Chart10
Elected and Appointed Officials11
FINANCIAL SECTION
Independent Auditor’s Report14
Management’s Discussion and Analysis17
Basic Financial Statements
Government-wide Financial Statements
Statement of Net Position31
Statement of Activities32
Fund Financial Statements
GovernmentalFunds
Balance Sheet36
Reconciliation of the Balance Sheet to the Statement of Net Position39
Statement of Revenues, Expenditures and Changesin Fund Balances40
Reconciliation of the Statement of Revenues, Expenditures and Changes in Fund
Balancesto the Statement of Activities42
General Fund
Statement of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual43
Proprietary Funds
Statementof Net Position44
Statement of Revenues, Expenses and Changes in Net Position47
Statement of Cash Flows48
Fiduciary Funds
Statement of Fiduciary Net Position50
Notes to the Financial Statements51
Required Supplementary Information
Schedule of Employer’s Share of Public Employees Retirement Association Net Pension Liability -
General Employees Retirement Fund84
Schedule of Employer’s Public Employees Retirement Association Contributions -
General Employees Retirement Fund84
Schedule of Employer’s Share of Public Employees Retirement Association Net Pension Liability -
Public Employees Police and Fire Fund84
Schedule of Employer’s Public Employees Retirement Association Contributions -
Public Employees Police and Fire Fund85
Schedule of Employer’s Fire Relief Contributions85
Schedule of Changes in Net PensionLiability and Related Ratios- Fire Relief Association86
-1-
CITY OF ALBERTVILLE, MINNESOTA
COMPREHENSIVE ANNUAL FINANCIAL REPORT
TABLE OF CONTENTS - CONTINUED
FOR THE YEAR ENDED DECEMBER 31, 2015
Page No.
Combining and Individual Fund Financial Statements and Schedules
Nonmajor Governmental Funds
Combining Balance Sheet92
Combining Statement of Revenues, Expenditures and Changes in Fund Balances93
Nonmajor Capital Projects Funds
Combining Balance Sheet96
Combining Schedule of Revenues, Expenditures and Changes in Fund Balances 98
General Fund
Schedule of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual101
Debt Service Fund
Combining Balance Sheet106
Combining Schedule of Revenues, Expenditures and Changes in Fund Balances108
Agency Funds
Combining Statement of Changes in Assets and Liabilities110
Summary Financial Report
Revenues and Expenditures for General Operations - Governmental Funds111
Table Page No.
STATISTICAL SECTION (UNAUDITED)
Net Position by Component 1 116
Changes in Net Position 2 118
Fund Balances of Governmental Funds 3 122
Changes in Fund Balances of Governmental Funds 4 124
Tax Capacity, Market Value and Estimated Actual Value of Taxable Property 5 126
Property Tax Capacity Rates - Direct and Overlapping Governments 6 129
Principal Taxpayers 7 130
Property Tax Levies and Collections 8 132
Ratios of Outstanding Debt by Type 9 133
Ratios of General Bonded Debt Outstanding10134
Computation of Direct and Overlapping Debt11135
Legal Debt Margin Information12136
Pledged-Revenue Coverage13138
Demographic and Economic Statistics14141
Principal Employers15142
Full-Time Equivalent City Government Employees by Function16144
Operating Indicators by Function17145
Capital Asset Statistics by Function18147
-2-
INTRODUCTORY SECTION
CITY OF ALBERTVILLE
ALBERTVILLE, MINNESOTA
FOR THE YEAR ENDED
DECEMBER 31, 2015
-3-
THIS PAGE IS LEFT BLANK
INTENTIONALLY
-4-
-5-
-6-
-7-
-8-
-9-
City of Albertville Organizational Chart
Voters
Consultants
City Attorney
City Council
City Planner
Committees
Contract Services
City Administrator/Public Works
Sheriff's Department Director/City Engineer
Family Youth Collaborative
Assessor
Joint Powers Water Economic Development Parks and Recreation
Senior Program
Public Works CommitteePersonnel CommitteeBoardPlanning CommissionAuthorityCommitteeSTMA Arena Board
Admin. Asst. Clerk II Building - Planning and
City ClerkFinance Director(Building Tech)ZoningSewer Utility DeptStreets and ParksSTMA Ice ArenaFire Department
Election JudgesFinance StaffUtility EmployeesParks EmployeesFire Chief
Fire Officers
Volunteer Firemen
-10-
CITY OF ALBERTVILLE, MINNESOTA
ELECTED AND APPOINTEDOFFICIALS
FOR THE YEAR ENDED DECEMBER 31, 2015
ELECTED
NameTitleTerm Expires
Jillian HendricksonMayor12/31/16
Rob OlsonCouncil Member12/31/18
Walter HudsonCouncil Member12/31/18
John VetschCouncil Member12/31/16
Larry SorensenCouncil Member12/31/16
APPOINTED
NameTitle
Adam NafstadCity Administrator
Tina LannesFinance Director
-11-
THIS PAGE IS LEFT BLANK
INTENTIONALLY
-12-
FINANCIAL SECTION
CITY OF ALBERTVILLE
ALBERTVILLE, MINNESOTA
FOR THE YEAR ENDED
DECEMBER 31, 2015
-13-
Independent Auditor's Report
Honorable Mayor and Members
of the City Council
City of Albertville
Albertville, Minnesota
Report on the Financial Statements
We have audited the accompanying financial statements of the governmental activities, the
business-type activities, each major fund and the aggregate remaining fund information of
the City of Albertville, Minnesota, as of and for the year ended December 31, 2015, and the
related notes to financial statements, which collectively comprise the City's basic financial
statements as listed in the Table of Contents.
Management's Responsibility for the Financial Statements
Management is responsible for the preparation and fair presentation of these financial
statements in accordance with accounting principles generally accepted in the United States
of America; this includes the design, implementation, and maintenance of internal control
relevant to the preparation and fair presentation of financial statements that are free from
material misstatement, whether due to fraud or error.
Auditor's Responsibility
Our responsibility is to express opinions on these financial statements based on our audit.
We conducted our audit in accordance with auditing standards generally accepted in the
United States of America and the standards applicable to financial audits contained in
Government Auditing Standards,
issued by the Comptroller General of the United States.
Those standards require that we plan and perform the audit to obtain reasonable assurance
about whether the financial statements are free from material misstatement.
An audit involves performing procedures to obtain audit evidence about the amounts and
disclosures in the financial statements. The procedures selected depend on the auditor's
judgment, including the assessment of the risks of material misstatement of the financial
statements, whether due to fraud or error. In making those risk assessments, the auditor
considers internal control relevant to the City's preparation and fair presentation of the
financial statements in order to design audit procedures that are appropriate in the
circumstances, but not for the purpose of expressing an opinion on the effectiveness of the
City's internal control. Accordingly, we express no such opinion. An audit also includes
evaluating the appropriateness of accounting policies used and the reasonableness of
significant accounting estimates made by management, as well as evaluating the overall
presentation of the financial statements.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide
a basis for our audit opinions.
-14-
Opinions
In our opinion, the financial statements referred to 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, 2015, and the respective changes in financial position and,
where applicable, cash flows thereof and the budgetary comparison for the General Fund for
the year then ended in accordance with accounting principles generally accepted in the
United States of America.
Implementation of GASB 68 and GASB 71
As discussed in Note 9 to the financial statements, the City has adopted the provisions of the
Accounting and
Governmental Accounting Standards Board (GASB) Statement No. 68,
Financial Reporting for Pensions Pension Transition for
and GASBStatement No. 71,
Contributions Made Subsequent to the Measurement Date.
Our opinion is not modified with
respect to this matter.
Other Matters
Required Supplementary Information
Accounting principles generally accepted in the United States of America require that the
Management's Discussion and Analysis, which follows this report letter, and the Schedule of
Employer's Share of Public Employees Retirement Association Net Pension liability
GERF Retirement Fund on page 84, Schedule of Employer's Share of Public Employees
Retirement Association Net Pension Liability PEPFF Retirement Fund on page 84,
Schedule of Employer's Public Employees Retirement Association Contributions GERF
Retirement Fund on page 84, Schedule of Employer's Public Employees Retirement
Association Contributions PEPFF Retirement Fund on page 85, Schedule of Employer's
Fire Relief Contributions and Non-Employees Contributing Entities on page 85, and
Schedule of Changes in Net Pension Liability and Related Ratios Fire Relief Association
on page 86 be presented to supplement the basic financial statements. Such information,
although not a part of the basic financial statements, is required by the GASB who considers
it to be an essential part of financial reporting for placing the basic financial statements in an
appropriate operational, economic, or historical context. We have applied certain limited
procedures to the required supplementary information in accordance with auditing standards
generally accepted in the United States of America, which consisted of inquiries of
management about the methods of preparing the information and comparing the information
for consistency with management's responses to our inquiries, the basic financial statements,
and other knowledge we obtained during our audit of the basic financial statements. We do
not express an opinion or provide any assurance on the information because the limited
procedures do not provide us with sufficient evidence to express an opinion or provide any
assurance.
-15-
Other Information
Our audit was conducted for the purpose of forming opinions on the financial statements
that collectively comprise the City's basic financial statements. The introductory section,
combining and individual fund financial statements and schedules and Statistical Section are
presented for purposes of additional analysis and are not a required part of the basic
financial statements.
The combining and individual fund financial statements and schedules are the responsibility
of management and were derived from and relate directly to the underlying accounting and
other records used to prepare the basic financial statements. Such information has been
subjected to the auditing procedures applied in the audit of the basic financial statements and
certain additional procedures, including comparing and reconciling such information
directly to the underlying accounting and other records used to prepare the basic financial
statements or to the basic financial statements themselves, and other additional procedures in
accordance with auditing standards generally accepted in the United States of America. In
our opinion, the combining and individual fund financial statements and schedules are fairly
stated, in all material respects, in relation to the basic financial statements as a whole.
The introductory section and statistical section have not been subjected to the auditing
procedures applied in the audit of the basic financial statements, and accordingly, we do not
express an opinion or provide any assurance on them.
Report on Summarized Comparative Information
We have previously audited the City's 2014 financial statements, and our report, dated
April 7, 2015, expressed unmodified opinions on the respective financial statements of the
governmental activities, the business-type activities, each major fund, and the aggregate
remaining fund information. In our opinion, the summarized comparative information
presented herein as of and for the year ended December 31, 2014, is consistent, in all
material respects, with the audited financial statements from which it has been derived.
Government Auditing Standards
Other Reporting Required by
Government Auditing Standards
In accordance with , we have also issued our report dated
April 6, 2016, on our consideration of the City of Albertville's internal control over financial
reporting and on our tests of its compliance with certain provisions of laws, regulations,
contracts and grant agreements, and other matters. The purpose of that report is to describe
the scope of our testing of internal control over financial reporting and compliance and the
results of that testing, and not to provide an opinion on internal control over financial
reporting or on compliance. That report is an integral part of an audit performed in
Government Auditing Standards
accordance with in considering the City of Albertville's
internal control over financial reporting and compliance.
Minneapolis, Minnesota
April 6, 2016
-16-
Management’s Discussion and Analysis
As management of the City of Albertville, Minnesota, (the City), we offer readers of the City’s financial statements this narrative
overview and analysis of the financial activities of the City for the fiscal year ended December 31, 2015.
Financial Highlights
The assets and deferred outflows of resources of the City exceeded its liabilities and deferred inflows of resources at the close
of the most recent fiscal year by $44,353,848(net position). Of this amount, $13,326,005(unrestricted net position) may be
used to meet the City’s ongoing obligations to citizens and creditors.
The City’s total net positionincreased $2,391,288.This increase is attributable to the governmental activitiesincreasing
$2,399,180due to an increasein capital grants and contributionsdue to the City drawing roughly $1.7 million in MSA
monies.
As of the close of the current fiscal year, the City’s governmental funds reported combined ending fund balances of
$10,320,885, an increase of $265,595in comparison with the prior year. Approximately 68percent of this total amount,
$7,003,319, is available for spending at the City’s discretionbut a portion has been assigned for specific purposes.
At the end of thecurrent fiscal year, unassignedfund balance for the General fund was $1,876,186, or 76percent of total
General fund 2015expenditures.
The City’s total debt decreased $6,295,120during the current fiscal year. The decrease was attributable to refunded debt
issues.
-17-
Overview of the Financial Statements
This discussion and analysis is intended to serve as an introduction to the City’s basic financial statements. The City’s basic financial
statements comprise three components: 1) government-wide financial statements, 2) fund financial statements, and 3) notes to the
financial statements. This report also contains other supplemental information in addition to the basic financial statements themselves.
The financial statements also include notes that explain some of the information in the financial statements and provide moredetailed
data. The statements arefollowed 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 reportare
arranged and relate to one another. In addition to these required elements, we have included a section with combining and individual
fund financial statements and schedules that provide details about non-major governmental funds, which are added together and
presented in single columns in the basic financial statements.
Figure 1
Required Components of the
City’s Annual Financial Report
Management's
Basic Required
Discussion and
Financial Supplementary
Analysis
StatementsInformation
Government-FundNotes to the
wide Financial Financial Financial
StatementsStatementsStatements
SummaryDetail
-18-
Figure 2 summarizes the major features of the City’s financial statements, including the portion of the City government they cover and
the types of information they contain. The remainder of this overview section of management’s discussion and analysis explains the
structure and contents of each of the statements.
Figure 2
Major features of the Government-wide and Fund Financial Statements
Fund Financial Statements
Government-wide StatementsGovernmental FundsProprietaryFunds
ScopeEntire City government(except The activities of the Citythat Activities the City operates
fiduciary funds)and the City’s are not proprietary orfiduciary,similar to private businesses,
component unitssuch as police, fire and parkssuch as the water and sewer
system
Required financial
Statement of Net PositionBalance SheetStatementsof Net Position
statements
Statement of ActivitiesStatement of Revenues, Statements of Revenues,
Expenditures, and Changes Expenses and Changes in
in Fund Balances Net Position
Statementsof Cash Flows
Accounting Basis and Accrual accounting and Modified accrual accounting Accrual accounting and
measurement focuseconomic resources focusand current financial resources economic resources focus
focus
Type of asset/liability All assets and liabilities, both Onlyassets expected to be used All assets and liabilities, both
informationfinancial and capital, and short-up and liabilities that come due financial and capital, and
term and long-term during the year or soon short-term and long-term
thereafter; no capital assets
included
Type of deferred All deferred outflows/inflows Only deferred outflows of All deferred outflows/inflows
outflows/inflows of of resources, regardless of resources expected to be used of resources, regardless of
resourcesinformationwhen cash is received or paidup and deferred inflows of when cash is received or paid
resources that come due during
the year or soon thereafter; no
capital assets included
Type of in flow/out All revenues and expenses Revenues for which cash is All revenues and expenses
flow informationduring year, regardless of when received during or soon after during the year, regardless of
cash is received or paidthe 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 statementsare 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 positionpresents information on all of the City’s assets and deferred outflows of resources, and liabilitiesand
deferred inflows of resources, with the difference between the two reported as net position. Over time, increases or decreases in net
positionmay serve as a useful indicator of whether the financial position of the City is improving or deteriorating.
The statement of activitiespresents information showing how the City’s net positionchanged during the most recent fiscal year. All
changes in net positionare reported as soonas the underlying event giving rise to the change occurs, regardless of the timing of
related cash flows. Thus, revenues and expenses are reported in this statement for some items that will only result in cash flows in
future fiscal periods (e.g., uncollected taxes and earned but unused vacation leave).
Both of the government-wide financial statements distinguish functions of the City that are principally supported by taxes and
intergovernmental revenue (governmental activities) from other functions thatare intended to recover all or a significant portion of
their costs through user fees and charges (business-type activities). The governmental activities of the City include general
government, public safety, public works, culture and recreation, economic development and interest on long-term debt. The business-
type activities of the City include sewer, water, storm waterand recycling.
The government-wide financial statements start on page 31 of this report.
-19-
Fund financial statements.
Afundis a grouping of related accounts that is used to maintain control over resources that have been
segregated for specific activities or objectives. The City, like other state and local governments, uses fund accounting to ensure and
demonstrate compliance with finance-related legal requirements. All of the funds of the City can be divided into three categories:
governmental funds, proprietary funds and fiduciary funds.
Governmental funds.Governmental fundsare used to account for essentially the same functions reported as governmental activities
in the government-wide financial statements. However, unlike the government-wide financial statements, governmental fund
financial statements focus on near-term inflows and outflows of spendable resources, as well as on balances of spendable resources
available at the end of the fiscal year. Such information may be useful in evaluating a government’s near-term financing
requirements.
Because the focus of governmental funds is narrower than that of the government-wide financial statements, it is useful to compare the
information presented for governmental fundswith similar information presented for governmental activitiesin the government-wide
financial statements. By doing so, readers may better understand the long-term impact by the government’s near-term financing
decisions. Both the governmental fund balance sheet and the governmental fund statement of revenues, expenditures and changes in
fund balances provide a reconciliation to facilitate this comparison between governmental fundsand governmental activities.
The City maintains 18individual governmental funds. Information is presented separately in the governmental fund balance sheet and
in the governmental fund statement of revenues, expenditures and changes in fund balances for the General fund, Debt Service,
Capital Outlay ReserveandPrairie Runfunds - all of which are considered to be major funds. Data from the other governmental
funds are combined into a single, aggregated presentation. Individual fund data for each of these non-major governmental funds is
provided in the form of combining statements or scheduleselsewhere in this report.
The City adopts an annual appropriated budget for its General fund. A budgetary comparison statement has been provided for the
Generalfundto demonstrate compliance with this budget.
The basic governmental fund financial statements start on page36of this report.
Proprietary funds. The City maintains one type of proprietary fund. Enterprise fundsare used to report the same functions presented
as business-type activitiesin the government-wide financial statements. The City uses enterprise funds to account for its sewer, water
storm waterand recycling operations.
Proprietary funds provide the same type of information as the government-wide financial statements, only in more detail. The
proprietary fund financial statements provide separate information for each of the enterprise funds.
The basic proprietary fund financial statements start on page 44 of this report.
Fiduciary funds. Fiduciary funds are used to account for resources held for the benefit of parties outside the City. Fiduciary funds
are notreflected in the government-wide financial statements because the resources of those funds are not available to support the
City’s own programs. The accounting used for fiduciary funds is much like that used for proprietary funds.
The basic fiduciary fund financial statements are on page 50 of this report.
Notes to the financial statements.
The notes provide additional information that is essential to a full understanding of the data
provided in the government-wide and fund financial statements. The notes to the financial statements start on page 51 of this report.
Other information.
The combining statements referred to earlier in connection with non-major governmental funds are presented
following the notes tothefinancial statements. Combining and individual fund statements and schedules start on page92of this
report.
-20-
Government-wide Financial Analysis
As noted earlier, net positionmay serve over time as a useful indicator of a government’s financial position. In the case of the City,
assets and deferred outflows of resources exceeded liabilities by $44,353,848at the close of the most recent fiscal year.
By far, the largest portion of the City’s net position (55percent) reflects its investment in capital assets (e.g., land, buildings,
machinery and equipment), less any related debt used to acquire those assets that is still outstanding. The City uses these capital assets
to provide services to citizens; consequently, these assets are not available for future spending. Although the City’s investment in its
capital assets is reported net of related debt, it should be noted that the resources needed to repay this debt must be provided from
other sources, since the capital assets themselves cannot be used to liquidate these liabilities.
City of Albertville’s Summary of Net Position
Governmental ActivitiesBusiness-type Activities
IncreaseIncrease
20152014(Decrease)20152014(Decrease)
Current and other assets$ 14,831,905$ 14,561,106$270,799$9,655,072$ 13,051,782$(3,396,710)
Capital assets22,426,32823,036,135(609,807)12,149,38912,055,57893,811
Total assets37,258,23337,597,241(339,008)21,804,46125,107,360(3,302,899)
Deferred outflows of resources601,668385,960215,70839,0003,63635,364
Long-term liabilities outstanding9,934,23012,857,039(2,922,809)3,762,6367,134,947(3,372,311)
Other liabilities910,412302,127608,285554,464217,963336,501
Total liabilities10,844,64213,159,166(2,314,524)4,317,1007,352,910(3,035,810)
Deferred inflows of resources122,913-122,91364,859-64,859
Net Position
Net investment in capital assets16,000,84015,982,54518,2958,423,1328,198,571224,561
Restricted6,603,8714,359,3582,244,513---
Unrestricted4,287,6354,482,132(194,497)9,038,3709,559,515(521,145)
Total net position$ 26,892,346$ 24,824,035$2,068,311$ 17,461,502$ 17,758,086$(296,584)
An additional portion of the City’s net position,$6,603,871, represents resources that are subject to external restrictions on how they
may be used. The remaining balance of unrestricted net position$13,326,005may 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 reportpositive balances in all three categories of net position, both for the City
as a whole, as well as for its separate governmental and business-type activities.
-21-
Governmental activities
. Governmental activities increased the City’s net position$2,399,180. Significant changes from the prior
year are noted below:
Sales of capital assets increase due to the sale of land held for resale totaling $132,569.
Capital grants and contributions increased $1,660,338 due to the City drawing $1,710,982 on MSA monies.
City of Albertville’s Changes in Net Position
Governmental ActivitiesBusiness-type Activities
IncreaseIncrease
20152014(Decrease)20152014(Decrease)
Revenues
Program revenues
Charges for services$874,343$971,705$(97,362)$1,341,317$1,955,133$(613,816)
Operating grants and contributions230,499249,041(18,542)64,00118,65745,344
Capital grants and contributions2,000,970340,6321,660,338122,884154,336(31,452)
General revenues
Taxes
Property taxes3,492,0423,284,015208,027---
Tax increment109,13228,64880,484---
Grants and contributions
not restricted to
specific programs98,93290,2698,663---
Gain on sale of capital assets3,450-3,450---
Miscellaneous132,569-132,569
Unrestricted investment earnings86,644182,322(95,678)89,694197,709(108,015)
Total revenues7,028,5815,146,6321,881,9491,617,8962,325,835(707,939)
Expenses
General government715,779923,711(207,932)---
Public safety1,222,6791,103,431119,248---
Public works1,636,9681,461,319175,649---
Culture and recreation569,429558,88110,548---
Economic development229,167137,93091,237---
Interest on long-term debt255,379295,924(40,545)---
Sewer---961,507946,58614,921
Water---399,8131,108,449(708,636)
Storm water---182,779170,06112,718
Recycling---81,68981,024665
Total expenses4,629,4014,481,196148,2051,625,7882,306,120
(680,332)
Increase (decrease) in net position
before transfers2,399,180665,4361,733,744(7,892)19,715(27,607)
Transfer - capital assets------
Transfer -330,236(330,236)-(330,236)330,236
Change in net position 2,399,180995,6721,403,508(7,892)(310,521)302,629
Net position, January 1 as restated*24,493,16624,390,964102,20217,469,39418,068,607(599,213)
Prior period adjustment-(562,601)562,601---
Net position, December 31$ 26,892,346$ 24,824,035$2,068,311$ 17,461,502$ 17,758,086$(296,584)
GASB Statement No. 68 was implemented for the year ended December 31, 2015 and required a $330,869 and $288,692 restatement
*
of beginning net position for governmental activities and business-type activities, respectively. Prior year amounts were not restated
causing a variance in ending net position at December 31, 2014 and beginning net position on January 1, 2015. See Note 9.
-22-
Financial Analysis of the Government’s Funds
As noted earlier, the City uses fund accounting to ensure and demonstrate compliance with finance-related legal requirements.
Governmental funds: The focus of the City’s governmental fundsis to provide information on near-term inflows, outflows and
balances of spendableresources. Such information is useful in assessing the City’s financing requirements. In particular, unassigned
fund balancemay 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 $10,320,885, an increase
of $265,595in comparison with the prior year. Approximately 68percent of this total amount, $7,003,319, constitutes assigned and
unassignedfund balance, which is available for spending at the City’s discretionbut assigned for specific purposes.The remainder of
fund balance $3,317,566is not available for new spending because it is either 1) nonspendable $53,695or 2)restricted $3,263,871.
The General fundis the chief operating fund of the City. At the end of the current year, the fund balance of the General fund was
$1,927,186.The fund balance of the City’s General fund increased $77,828during the current fiscal year. The fund transferred out
$300,000during the year.
The Debt Servicefundbalance decreased $1,990,557from the prior year for an ending fund balance of $2,853,966. The decrease in
fund balance was due to the refunding bonds.
The Capital Outlay Reservefundbalance increased $2,080,320, for an ending fund balance of $5,828,259. The increase in fund
balance was due to MSA monies received of roughly $1.7 million.
The Prairie Run fundhas a deficit fund balance of $566,897, which wasan increase of $172,135 from the prior year.The increase in
fund balance was due to the sale of land held for resale for roughly $132,000.
Proprietary funds:The City’s proprietary funds provide the same type of information found in the government-wide financial
statements, but in more detail.
Unrestricted net positionof the enterprise funds at the end of the year amounted to $9,038,370. The total decreasein net positionfor
the funds was $7,892. Other factors concerning the finances of these funds have already been addressed in the discussion of the City’s
business-type activities.
General Fund Budgetary Highlights
The City’s General fund budget was amended during the yearto reflect a change in property taxes and the allocation of the
administrative feeand capital outlay. The budgetdid not call for an increase ordecrease infund balance. The actual activity of the
General fund resulted in an increase of $77,828.
Revenues exceeded the budget by $359,110.All revenue categories were over budget, with the exception of taxesand interest on
investments. Charges for services and miscellaneous revenue sources had the largest positive variances of $179,185and $66,920,
respectively.
Expenditures were underbudget by $18,718. General government, public safety and public works were the departmentsunder budget
by $42,981, $46,345and $9,508, respectively.
-25-
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, 2015,
amounts to $34,575,717(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 twopercent. This decrease was due to depreciation.
Additional information on the City’s capital assets can be found in Note 3B starting on page63of this report.
City of Albertville’s Capital Assets
(net of depreciation)
Governmental ActivitiesBusiness-type Activities
IncreaseIncrease
20152014(Decrease)20152014(Decrease)
Land$3,658,084$3,658,084$-$351,834$351,834$-
Construction in progress531,818460,98670,832375,774750,019(374,245)
Buildings4,565,8014,718,665(152,864)3,531,8623,649,429(117,567)
Infrastructure11,667,42312,626,583(959,160)7,630,3866,988,565641,821
Land improvements1,426,479991,046435,433---
Machinery and equipment245,087281,036(35,949)54,46071,508(17,048)
Vehicles331,636299,73531,901205,073244,223(39,150)
Total$ 22,426,328$ 23,036,135$(609,807)$ 12,149,389$ 12,055,578$93,811
Long-term debt
: At the end of the current fiscal year, the City had total bonded debt outstanding of $13,571,574. This amount
consists ofgeneral obligation special assessment, general obligation revenue bondsand revenue bonds. While many of thesebonds
havetheir ownrevenue streams,they arebacked by the full faith and credit of the City.
City of Albertville’s Outstanding Debt
Governmental ActivitiesBusiness-type Activities
IncreaseIncrease
20152014(Decrease)20152014(Decrease)
General obligation special
assessment bonds$9,845,317$ 12,807,462$(2,962,145)$606,085$1,242,391$(636,306)
General obligation -
revenue bonds---3,120,1725,855,190(2,735,018)
Compensated absences88,91349,57739,33636,37937,366(987)
Total$9,934,230$ 12,857,039$(2,922,809)$3,762,636$7,134,947$(3,372,311)
The City’s total debt decreased $6,295,120during the current fiscal year. The decrease was attributable to refunded debt issues.
Minnesota statutes limit the amount of net general obligation debt a City may issue to 3 percent of the market value of taxable
property within the City. Net debt is debt payable solely from ad valorem taxes. The City’s applicable debt does not exceed the limit
set forth in statute.
Additional information on the City’s long-term debt can be found in Note 3E startingon page 66 of this report.
-26-
Economic Factors and Next Year’s Budgets and Rates
Residential property values continueto increase from the previous years and neighborhoods continue to be very stable. New housing
starts remain steady and overall permit activity has increased from previous years. Commercial vacancy has declined and commercial
property inquires have greatly increased. Two industrial businesses completed large expansions in 2015 and a national entertainment,
waterpark, and hospitality complex is reportedly planning to begin development in 2016.
Budgeted capital projects are generally targeted towards maintenance and preservation of the City’s infrastructure.
In 2015, significant capacity improvements to Interstate 94 were completed, which extended six lanes of freeway from the twincities
metropolitan area into Wright County. Currently, the State of Minnesota is evaluating the extension of the six lanes of freeway to the
City of Albertville.
Requests for Information
This financial report is designed to provide a general overview of the City’s finances for all those with an interest in the City’s
finances. Questions concerning any of the information provided in this report or requests for additional financial information should
be addressed to the Finance Director, City of Albertville, 5959 Main Avenue, Albertville, Minnesota 55301.
-27-
THIS PAGE IS LEFT BLANK
INTENTIONALLY
-28-
GOVERNMENT-WIDEFINANCIAL STATEMENTS
CITY OF ALBERTVILLE
ALBERTVILLE, MINNESOTA
FOR THE YEAR ENDED
DECEMBER 31, 2015
-29-
THIS PAGE IS LEFT BLANK
INTENTIONALLY
-30-
CITY OF ALBERTVILLE, MINNESOTA
STATEMENT OF NET POSITION
DECEMBER 31, 2015
GovernmentalBusiness-type
ActivitiesActivitiesTotal
ASSETS
Cash and temporary investments$ 10,132,888$ 8,144,411$ 18,277,299
Receivables
Interest51,414-51,414
Taxes66,288-66,288
Accounts155,823178,537334,360
Notes - due within one year75,321-75,321
Notes - due in more than one year1,172,22475,0011,247,225
Special assessments2,013,192129,9692,143,161
Internal balances(1,124,283)1,124,283-
Due from other governments323,2292,871326,100
Equity interest in joint venture500,228-500,228
Net pension asset190,933-190,933
Land held for resale1,274,648-1,274,648
Capital assets
Land and construction is progress4,189,902727,6084,917,510
Depreciable assets, net of accumulated depreciation18,236,42611,421,78129,658,207
TOTAL ASSETS37,258,23321,804,46159,062,694
DEFERRED OUTFLOWS OF RESOURCES
Loss on refunding bonds346,829-346,829
Deferred pension resources254,83939,000293,839
TOTAL DEFERRED OUTFLOWS OF RESOURCES601,66839,000640,668
LIABILITIES
Accounts and contracts payable227,761145,543373,304
Due to other governments61,48258,179119,661
Accrued interest payable59,01915,28874,307
Accrued salaries payable11,9745,99117,965
Net pension liability550,176329,463879,639
Noncurrent liabilities - due within one year1,029,925581,0441,610,969
Noncurrent liabilities - due in more than one year8,904,3053,181,59212,085,897
TOTAL LIABILITIES10,844,6424,317,10015,161,742
DEFERRED INFLOWS OF RESOURCES
Deferred pension resources122,91364,859187,772
NET POSITION
Net investment in capital assets16,000,8408,423,13224,423,972
Restricted for
Debt service6,189,942-6,189,942
Park Dedication171,198-171,198
Tax increment57,551-57,551
Revolving loans185,180-185,180
Unrestricted 4,287,6359,038,37013,326,005
TOTAL NET POSITION$ 26,892,346$ 17,461,502$ 44,353,848
The notes to the financial statements are an integral part of this statement.
-31-
CITY OF ALBERTVILLE, MINNESOTA
STATEMENT OF ACTIVITIES
FOR THE YEAR ENDED DECEMBER 31, 2015
Program Revenues
OperatingCapital Grants
Charges forGrants andand
Functions/Programs
ExpensesServicesContributionsContributions
Governmental activities
General government$ 715,779$ 489,742$ 74,015$ 10,243
Public safety1,222,679227,250105,787-
Public works1,636,9682,50016,4631,960,406
Culture and recreation569,429154,85110,70630,321
Economic development229,167-23,528-
Interest on long-term debt255,379---
Total governmental activities4,629,401874,343230,4992,000,970
Business-type activities
Sewer961,507752,09449,94998,778
Water399,813256,040-20,956
Storm Water182,779251,960-3,150
Recycling81,68981,22314,052-
Total business-type activities1,625,7881,341,31764,001122,884
Total$ 6,255,189$ 2,215,660$ 294,500$ 2,123,854
General revenues
Taxes
Property taxes levied for general purposes
Property taxes levied for debt service
Tax increments
Grants and contributions not restricted to specific programs
Unrestricted investment earnings
Sale of capital assets
Miscellaneous
Total general revenues, transfers and special item
Change in net position
Net position, January 1 restated
Net position, December 31
The notes to the financial statements are an integral part of this statement.
-32-
Net (Expenses) Revenues
and Changes in Net Position
GovernmentalBusiness-type
ActivitiesActivitiesTotal
$ (141,779)$ -$ (141,779)
(889,642)-(889,642)
342,401-342,401
(373,551)-(373,551)
(205,639)-(205,639)
(255,379)-(255,379)
(1,523,589)-(1,523,589)
-(60,686)(60,686)
-(122,817)(122,817)
-72,33172,331
-13,58613,586
-(97,586)(97,586)
(1,523,589)(97,586)(1,621,175)
2,606,772-2,606,772
885,270-885,270
109,132-109,132
98,932-98,932
86,64489,694176,338
3,450-3,450
132,569-132,569
3,922,76989,6944,012,463
2,399,180(7,892)2,391,288
24,493,16617,469,39441,962,560
$26,892,346$17,461,502$44,353,848
-33-
THIS PAGE IS LEFT BLANK
INTENTIONALLY
-34-
FUNDFINANCIAL STATEMENTS
CITY OF ALBERTVILLE
ALBERTVILLE, MINNESOTA
FOR THE YEAR ENDED
DECEMBER 31, 2015
-35-
CITY OF ALBERTVILLE, MINNESOTA
BALANCE SHEET
GOVERNMENTAL FUNDS
DECEMBER 31, 2015
Capital Projects
Capital
DebtOutlayPrairie
GeneralServiceReserveRun
ASSETS
Cash and temporary investments$ 1,894,343$ 2,016,895$ 5,780,389$ -
Receivables
Taxes48,84217,446--
Accounts9,831-145,992-
Special assessments73,8241,936,065--
Interest44,7826,632--
Notes-1,243,522--
Advances to other funds-162,889--
Due from other governments123,229200,000--
Land held for resale51,0001,220,953-2,695
TOTAL ASSETS$ 2,245,851$ 6,804,402$ 5,926,381$ 2,695
LIABILITIES
Accounts and contracts payable$ 128,889$ -$ 98,122$ 750
Advances from other funds-555,441-568,842
Due to other governments61,482---
Accrued salaries payable11,974---
TOTAL LIABILITIES202,345555,44198,122569,592
DEFERRED INFLOWS OF RESOURCES
Unavailable revenue - property taxes43,36915,404--
Unavailable revenue - special assessments72,9511,936,069--
Unavailable revenue - notes-1,443,522--
TOTAL DEFERRED INFLOWS OF RESOURCES116,3203,394,995--
FUND BALANCES
Nonspendable51,000--2,695
Restricted-2,853,966--
Assigned--5,828,259-
Unassigned1,876,186--(569,592)
TOTAL FUND BALANCES1,927,1862,853,9665,828,259(566,897)
TOTAL LIABILITIES, DEFERRED INFLOWS
OF RESOURCES AND FUND BALANCES$ 2,245,851$ 6,804,402$ 5,926,381$ 2,695
The notes to the financial statements are an integral part of this statement.
-36-
OtherTotal
GovernmentalGovernmental
FundsFunds
$ 441,261$10,132,888
-66,288
-155,823
3,3032,013,192
-51,414
4,0231,247,545
109,760272,649
-323,229
-1,274,648
$ 558,347$15,537,676
$ -$ 227,761
272,6491,396,932
-61,482
-11,974
272,6491,698,149
-58,773
3,3032,012,323
4,0241,447,546
7,3273,518,642
-53,695
409,9053,263,871
141,1155,969,374
(272,649)1,033,945
278,37110,320,885
$ 558,347$15,537,676
-37-
THIS PAGE IS LEFT BLANK
INTENTIONALLY
-38-
CITY OF ALBERTVILLE, MINNESOTA
RECONCILIATION OF THE BALANCE SHEET
TO THE STATEMENT OF NET POSITION
DECEMBER 31, 2015
Amounts reported for the governmental activities in the statement of net position are different because
Total fund balances - governmental$10,320,885
Governmental funds do not report an asset for equity interest in the joint venture500,228
Capital assets used in governmental activities are not financial
resources and therefore are not reported as assets in governmental funds.
Cost of capital assets42,706,391
Less: accumulated depreciation(20,280,063)
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(88,913)
Bond principal payable(9,845,317)
Deferred outflows of resources, loss on refunding bond346,829
Pension liability(550,176)
Some receivables are not available soon enough to pay for the current period's expenditures,
and therefore are deferred in the funds.
Special assessments2,012,323
Taxes58,773
Intergovernmental1,447,546
Governmental funds do not report long-term amounts related to pensions
Deferred outflows of pension resources254,839
Deferred inflows of pension resources(122,913)
Pension asset190,933
Governmental funds do not report a liability for accrued interest until due and payable.(59,019)
Total net position - governmental activities$26,892,346
The notes to the financial statements are an integral part of this statement.
-39-
CITY OF ALBERTVILLE, MINNESOTA
STATEMENT OF REVENUES, EXPENDITURES AND
CHANGES IN FUND BALANCES
GOVERNMENTAL FUNDS
FOR THE YEAR ENDED DECEMBER 31, 2015
Capital Projects
Capital
DebtOutlayPrairie
GeneralServiceReserveRun
REVENUES
Taxes$ 1,678,488$ 944,963$ 864,161$ -
Licenses and permits197,878---
Intergovernmental197,21950,0001,710,982-
Charges for services648,359---
Fines and forfeitures1,000---
Special assessments22,910380,065-4,515
Interest on investments19,32931,56631,891745
Miscellaneous77,42089,61156,171132,569
TOTAL REVENUES2,842,6031,496,2052,663,205137,829
EXPENDITURES
Current
General government578,042-28,116-
Public safety1,154,656---
Public works339,556294,986--
Culture and recreation387,025---
Economic development5,496---
Capital outlay
General government--22,847-
Public safety--78,485-
Public works--627,6959,694
Culture and recreation--59,651-
Economic development--25,541-
Debt service
Principal-3,191,851--
Interest and other-234,925--
TOTAL EXPENDITURES2,464,7753,721,762842,3359,694
EXCESS (DEFICIENCY) OF REVENUES
OVER (UNDER) EXPENDITURES377,828(2,225,557)1,820,870128,135
OTHER FINANCING SOURCES (USES)
Transfers in--300,00044,000
Bond issuance-235,000--
Sale of capital assets--3,450-
Transfers out(300,000)-(44,000)-
TOTAL OTHER FINANCING SOURCES (USES)(300,000)235,000259,45044,000
NET CHANGE IN FUND BALANCES77,828(1,990,557)2,080,320172,135
FUND BALANCES, JANUARY 11,849,3584,844,5233,747,939(739,032)
FUND BALANCES, DECEMBER 31$ 1,927,186$ 2,853,966$ 5,828,259$ (566,897)
The notes to the financial statements are an integral part of this statement.
-40-
OtherTotal
GovernmentalGovernmental
FundsFunds
$ 109,132$ 3,596,744
-197,878
-1,958,201
-648,359
-1,000
27,192434,682
3,11386,644
2,264358,035
141,7017,281,543
-606,158
-1,154,656
-634,542
-387,025
198,130203,626
-22,847
-78,485
-637,389
17,70277,353
-25,541
-3,191,851
-234,925
215,8327,254,398
(74,131)27,145
-344,000
-235,000
-3,450
-(344,000)
-238,450
(74,131)265,595
352,50210,055,290
$ 278,371$ 10,320,885
-41-
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 31, 2015
Amounts reported for governmental activities in the statement of activities are different because
Total change is fund balances$ 265,595
Governmental funds do not report income or loss in a joint venture14,300
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 outlays724,758
Depreciation expense(1,334,565)
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 position. Also, governmental funds report
the effect of premiums, discounts and similar items when debt is first issued,
whereas these amounts are amortized in the statement of activities.
Principal repayments3,191,851
Debt issued or incurred(235,000)
Amortization of loss on refunding and premium(33,837)
Interest on long-term debt in the statement of activities differs from the amount reported in the
governmental fund because interest is recognized as an expenditure in the funds when it is due,
and thus requires the use of current financial resources. In the statement of activities, however,
interest expense is recognized as the interest accrues, regardless of when it is due.13,383
Long-term pension activity is not reported in governmental funds
Pension expense102,742
Pension revenue810
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(39,335)
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 (150,695)
Taxes4,430
Intergovernmental(125,257)
Change in net position - governmental activities$ 2,399,180
The notes to the financial statements are an integral part of this statement.
-42-
CITY OF ALBERTVILLE, MINNESOTA
STATEMENT OF REVENUES, EXPENDITURES AND
CHANGES IN FUND BALANCES - BUDGET AND ACTUAL
GENERAL FUND
FOR THE YEAR ENDED DECEMBER 31, 2015
General
Budgeted Amounts
ActualVariance with
OriginalFinalAmountsFinal Budget
REVENUES
Taxes$ 2,547,180$ 1,683,019$ 1,678,488$ (4,531)
Licenses and permits128,300128,300197,87869,578
Intergovernmental167,500167,500197,21929,719
Charges for services624,075469,174648,359179,185
Fines and forfeitures--1,0001,000
Special assessments--22,91022,910
Interest on investments25,00025,00019,329(5,671)
Miscellaneous10,50010,50077,42066,920
TOTAL REVENUES3,502,5552,483,4932,842,603359,110
EXPENDITURES
Current
General government783,966621,023578,042(42,981)
Public safety1,204,6651,201,0011,154,656(46,345)
Public works441,790349,064339,556(9,508)
Culture and recreation278,973307,405387,02579,620
Economic development5,0005,0005,496496
Capital outlay
General government32,500---
Public safety203,500---
Public works464,100---
Culture and recreation88,061---
TOTAL EXPENDITURES3,502,5552,483,4932,464,775(18,718)
EXCESS OF REVENUES
OVER EXPENDITURES--377,828377,828
OTHER FINANCING SOURCE
Transfers out--(300,000)(300,000)
NET CHANGE IN FUND BALANCES--77,82877,828
FUND BALANCES, JANUARY 11,849,3581,849,3581,849,358-
FUND BALANCES, DECEMBER 31$ 1,849,358$ 1,849,358$ 1,927,186$ 77,828
The notes to the financial statements are an integral part of this statement.
-43-
CITY OF ALBERTVILLE, MINNESOTA
STATEMENT OF NET POSITION
PROPRIETARY FUNDS
DECEMBER 31, 2015
SewerWaterStorm WaterRecyclingTotal
ASSETS
CURRENT ASSETS
Cash and temporary investments$ 5,262,691$ 1,476,647$ 1,342,421$ 62,652$ 8,144,411
Receivables
Accounts76,13880,05722,342-178,537
Delinquent special assessments3,9504,8481,29156810,657
Special assessments, current portion70,34812,7785,170-88,296
Due from other governments---2,8712,871
TOTAL CURRENT ASSETS5,413,1271,574,3301,371,22466,0918,424,772
NONCURRENT ASSETS
Special assessments, net of current portion70,34812,77831,016-114,142
Notes, net of current portion--75,001-75,001
Advances to other funds1,124,283---1,124,283
CAPITAL ASSETS
Land205,722-146,112-351,834
Buildings4,702,684---4,702,684
Infrastructure8,916,6861,205,4981,331,624-11,453,808
Machinery and equipment136,137121,448--257,585
Vehicles168,356198,91469,177-436,447
Construction in progress51,112170,091154,571-375,774
Less: Accumulated depreciation(4,771,382)(505,281)(152,080)-(5,428,743)
NET CAPITAL ASSETS9,409,3151,190,6701,549,404-12,149,389
TOTAL NONCURRENT ASSETS10,603,9461,203,4481,655,421-13,462,815
TOTAL ASSETS16,017,0732,777,7783,026,64566,09121,887,587
DEFERRED OUTFLOWS OF RESOURCES
Deferred pension resources16,40716,4076,186-39,000
The notes to the financial statements are an integral part of this statement.
-44-
CITY OF ALBERTVILLE, MINNESOTA
STATEMENT OF NET POSITION - CONTINUED
PROPRIETARY FUNDS
DECEMBER 31, 2015
SewerWaterStorm WaterRecyclingTotal
LIABILITIES
CURRENT LIABILITIES
Accounts and contracts payable$ 15,368$ 43,254$ 80,317$ 6,604$ 145,543
Due to other governments-58,179--58,179
Accrued interest payable9,6151,3224,351-15,288
Accrued salaries payable2,5222,522947-5,991
Compensated absences payable, current portion12,27812,2782,728-27,284
Bonds payable, current portion477,2007,80068,760-553,760
TOTAL CURRENT LIABILITIES516,983125,355157,1036,604806,045
NONCURRENT LIABILITIES
Compensated absences payable4,0934,093909-9,095
Bonds payable2,540,27294,900537,325-3,172,497
Pension liability138,601138,60252,260-329,463
TOTAL NONCURRENT LIABILITIES2,682,966237,595590,494-3,511,055
TOTAL LIABILITIES3,199,949362,950747,5976,6044,317,100
DEFERRED INFLOWS OF RESOURCES
Deferred pension resources27,28527,28610,288-64,859
NET POSITION
Net investment in capital assets6,391,8431,087,970943,319-8,423,132
Unrestricted6,344,0551,303,2011,331,62759,4879,038,370
TOTAL NET POSITION$12,735,898$ 2,391,171$ 2,274,946$ 59,487$17,461,502
The notes to the financial statements are an integral part of this statement.
-45-
THIS PAGE IS LEFT BLANK
INTENTIONALLY
-46-
CITY OF ALBERTVILLE, MINNESOTA
STATEMENT OF REVENUES, EXPENSES AND
CHANGES IN NET POSITION
PROPRIETARY FUNDS
FOR THE YEAR ENDED DECEMBER 31, 2015
SewerWaterStorm WaterRecyclingTotal
OPERATING REVENUES
Charges for services$ 849,344$ 272,689$ 222,747$ 81,223$ 1,426,003
OPERATING EXPENSES
Personal services242,153236,92597,178-576,256
Supplies22,53815,977337-38,852
Professional services24,97713,90723,91195963,754
Utilities66,842312--67,154
Insurance17,4796,8921,532-25,903
Repairs and maintenance49,14121,35811,429-81,928
Remittance to Joint Powers Board-16,149--16,149
Depreciation335,04758,34724,474-417,868
Other charges50,34026,7665,52480,730163,360
TOTAL OPERATING EXPENSES808,517396,633164,38581,6891,451,224
OPERATING INCOME (LOSS)40,827(123,944)58,362(466)(25,221)
NONOPERATING REVENUES (EXPENSES)
Interest income61,00912,66215,55546889,694
Intergovernmental46,782-29,28214,05290,116
Special assessments--3,081-3,081
Interest expense and other(152,990)(3,180)(18,394)-(174,564)
Other income4,6954,307--9,002
TOTAL NONOPERATING
REVENUES (EXPENSES)(40,504)13,78929,52414,52017,329
CHANGE IN NET POSITION323(110,155)87,88614,054(7,892)
NET POSITION, JANUARY 1 RESTATED12,859,9062,625,6572,227,09045,43317,758,086
CHANGE IN ACCOUNTING PRINCIPLE(124,331)(124,331)(40,030)-(288,692)
NET POSITION, DECEMBER 31$12,735,898$ 2,391,171$ 2,274,946$ 59,487$17,461,502
The notes to the financial statements are an integral part of this statement.
-47-
CITY OF ALBERTVILLE, MINNESOTA
STATEMENT OF CASH FLOWS
PROPRIETARY FUNDS
FOR THE YEAR ENDED DECEMBER 31, 2015
SewerWaterStorm WaterRecyclingTotals
CASH FLOWS FROM OPERATING ACTIVITIES
Receipts from customers and users$1,416,163
$ 8 44,907$ 2 67,930$ 2 22,103$ 8 1,223
Other receipts and payments, net4,6954,30721,428-30,430
Payments to suppliers(228,720)(122,596)(120,344)(75,085)(546,745)
Payments to employees(216,820)(211,590)(80,493)-(508,903)
NET CASH PROVIDED (USED) BY
OPERATING ACTIVITIES404,062(61,949)42,6946,138390,945
CASH FLOWS FROM NONCAPITAL
FINANCING ACTIVITIES
Payment on advance to other funds214,567---214,567
Intergovernmental46,7821,93429,28213,99291,990
NET CASH PROVIDED (USED) BY
NONCAPITAL FINANCING ACTIVITIES261,3491,93429,28213,992306,557
CASH FLOWS FROM CAPITAL AND
RELATED FINANCING ACTIVITIES
Acquisition of capital assets(44,863)(158,702)(201,155)-(404,720)
Special assessments(207)(271)9,462(226)8,758
Payment on advance to other funds182,039---182,039
Interest paid on bonds(159,973)(3,222)(22,977)-(186,172)
Principal paid on bonds (2,727,200)(7,800)(635,000)- (3,370,000)
NET CASH PROVIDED (USED) BY
CAPITAL FINANCING ACTIVITIES (2,750,204)(169,995)(849,670)(226) (3,770,095)
CASH FLOWS FROM INVESTING ACTIVITIES
Interest received on investments61,00912,66217,48446891,623
NET INCREASE (DECREASE) IN
CASH AND CASH EQUIVALENTS (2,023,784)(217,348)(760,210)20,372 (2,980,970)
CASH AND CASH EQUIVALENTS, JANUARY 17,286,4751,693,9952,102,63142,280
1 1,125,381
CASH AND CASH EQUIVALENTS, DECEMBER 31$5,262,691$1,476,647$1,342,421$8,144,411
$ 6 2,652
The notes to the financial statements are an integral part of this statement.
-48-
CITY OF ALBERTVILLE, MINNESOTA
STATEMENT OF CASH FLOWS - CONTINUED
PROPRIETARY FUNDS
FOR THE YEAR ENDED DECEMBER 31, 2015
SewerWaterStorm WaterRecyclingTotals
RECONCILIATION OF OPERATING INCOME (LOSS) TO
NET CASH PROVIDED (USED) BY OPERATING ACTIVITIES
Operating income (loss)$ (123,944)$ (466)$ (25,221)
$ 4 0,827$ 5 8,362
Adjustments to reconcile operating income (loss) to
net cash provided (used) by operating activities
Other income related to operations4,6954,307--9,002
Depreciation 335,04758,34724,474-417,868
(Increase) decrease in assets/deferred outflows of resources
Accounts receivable(3,498)(4,261)(86)-(7,845)
Special assessments receivable(939)(498)(558)-(1,995)
Note receivable--21,428-21,428
Deferred pension resources(28,343)(28,343)(10,029)-(66,715)
Increase (decrease) in liabilities/deferred inflows of resources
Accounts payable2,597(21,235)(77,611)6,604(89,645)
Accrued salaries payable629629452-1,710
Compensated absences payable(444)(444)(99)-(987)
Pension liability26,20626,20716,073-68,486
Deferred pension resources27,28527,28610,288-64,859
NET CASH PROVIDED (USED) BY
OPERATING ACTIVITIES$ (61,949)
$ 4 04,062$ 4 2,694$ 6,138$ 390,945
SCHEDULE OF NONCASH CAPITAL AND
FINANCING ACTIVITIES
Capital assets purchased on account
$ 6 ,249$ 2 0,794$ 7 9,916$ -$ 106,959
Amortization of loss on refunding bonds3,636---3,636
Amortization of bond premiums18-1,306-1,324
TOTAL NONCASH CAPITAL
AND FINANCING ACTIVITIES
$ 9 ,903$ 2 0,794$ 8 1,222$ -$ 111,919
The notes to the financial statements are an integral part of this statement.
-49-
CITY OF ALBERTVILLE, MINNESOTA
STATEMENT OF FIDUCIARY NET POSITION
FIDUCIARY FUNDS
DECEMBER 31, 2015
Agency
ASSETS
Cash and temporary investments$ 936,659
Accounts receivable47,144
Inventory6,447
TOTAL ASSETS$ 990,250
LIABILITIES
Accounts payable$ 988,328
Accrued salaries payable1,922
TOTAL LIABILITIES$ 990,250
The notes to the financial statements are an integral part of this statement.
-50-
CITY OF ALBERTVILLE, MINNESOTA
NOTES TOTHE FINANCIAL STATEMENTS
DECEMBER 31, 2015
Note 1:SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
A.Reporting entity
The City of Albertville, Minnesota (the City) operates under the "Optional Plan A" form of government as defined in the
State of Minnesota statutes. Under this plan, the government of the City isdirected by a City Council composed of an
elected Mayor and four elected City Council members. The City Council exercises legislative authority and determines
all matters of policy. The City Council appoints personnel responsible for the proper administration of all affairs relating
to the City. The City has considered all potential units for which it is financially accountable, and other organizations for
which the nature and significance of their relationship with the City are such that exclusion would cause the City’s
financial statements to be misleading or incomplete. The Governmental Accounting Standards Board (GASB) has set
forth criteria to be considered in determining financial accountability. These criteria include appointing a voting
majority of an organization’s governing body, and (1) the ability of the primary government to impose its will on that
organization or (2) the potential for the organization to provide specific benefits to, or impose specific financial burdens
on the primary government.
Blended component unit
The Albertville Economic Development Authority (EDA) is a legal separate entity created to carry out economic
development activities. The EDA is governed by five members, which consists of the City Council and the operational
responsibility for the EDA rests with the management of the City. The criterion that results in the EDA being reported as
a blended component unit include 1)the five board members are members of the City Council and 2) the operational
responsibility of the EDA rests with the management of the City. The EDA does not issue separate financial statements
and are included in the financial section of this report.
B.Government-wide and fundfinancial statements
The government-wide financial statements (i.e., the statement of net position and the statement of activities) report
information on all of the nonfiduciary activities of the City. Governmental activities, which normally are supported by
taxes and intergovernmental revenues, are reported separatelyfrom 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.
Amounts reportedas program revenuesinclude 1) charges to customers or applicants who purchase, use, or directly
benefit from goods, services or privileges provided by a given function or segment and 2) grants and contributions that
are restricted to meeting the operational or capital requirements of a particular function or segment. Taxes and other
items not properly included among program revenues are reported instead asgeneral revenues.
Separate financial statements are provided for governmental funds, proprietary fundsand fiduciary funds. Major
individual governmental funds and major individual enterprise funds are reported as separate columns in the fund
financial statements.
C.Measurement focus, basis of accounting and financial statement presentation
The government-wide financial statements are reported using the economic resources measurement focus and the
accrual basis of accounting, as are the proprietary fund financial statements. Revenues are recorded when earned and
expenses are recorded when a liability is incurred, regardless of the timing of related cash flows. Property taxes are
recognized as revenues in the year for which they are levied. Grants and similar items are recognized as revenue as soon
as all eligibility requirements imposed by the provider have been met.
Governmental fund financial statements are reported using the current financial resources measurement focus and the
modified accrual basis of accounting.Revenues are recognized as soon as they are both measurable and available.
Revenues are considered to be availablewhen 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.
-51-
CITY OF ALBERTVILLE, MINNESOTA
NOTES TO THE FINANCIAL STATEMENTS
DECEMBER 31, 2015
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.
Unearnedrevenue 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 unearnedrevenue.
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 financial resources of the City, except
those required to be accounted for in another fund.
The Debt Servicefund accounts for the accumulation of resources and payment of bond principal and interest on
long-term general obligation debt of governmental funds.
The Capital Outlay Reserve fund accounts for the accumulation of resources necessary to fund future capital
improvements and equipment purchases.
The Prairie Run fund accounts for the accumulation of resources and payments made for construction of public
improvements at the Prairie Run development.
-52-
CITY OF ALBERTVILLE, MINNESOTA
NOTES TO THE FINANCIAL STATEMENTS
DECEMBER 31, 2015
Note 1:SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - CONTINUED
The City reports the following major proprietary funds:
The Sewerfundaccounts for the activities of the City’s sewage collection utility.
The Waterfundaccounts for the activities of the City’s water utility.
The Storm Waterfundaccounts forthe activities of the City’s storm drainage utility.
The Recycling fundaccounts for the activitiesof the City’s recycling operations.
Additionally, the City reports the following fund types:
Fiduciary fundsaccount for assets held by the Cityin a trustee capacity or as an agent on behalf of others.
The agency fundsare custodial in nature and do not present results of operations or have a measurement focus.
Agency funds are accounted for using the accrual basis of accounting.
The Friendly City Days fundaccounts assets that are donated to the City for its annual celebration.
The Albertville Lions fundaccounts assets that are donated to the City for future projects.
The St. Michael-Albertville Ice Arena fundaccounts for the activities of Ice Arena.
The Escrow fundaccounts for landscaping deposits which are given back to the homeowner once certain
landscaping requirements are met for new homes.The City also uses this fund to account for developer and planning
and zoning deposits. These deposits are used to pay for specific expenses related to development and planning.
Once the development or planning and zoning changes have been made, the deposits are returned to the original
depositor.
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.
Proprietary funds distinguish operating revenues and expenses from nonoperatingitems. 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.
-53-
CITY OF ALBERTVILLE, MINNESOTA
NOTES TO THE FINANCIAL STATEMENTS
DECEMBER 31, 2015
Note 1:SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - CONTINUED
D.Assets, liabilities, deferred outflows/inflows ofresources,and net position/fund balance
Deposits and investment
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.The proprietary funds’ portion in the
government-wide cash and temporary investments pool is considered to be cash and cash equivalents for purposes of the
Statementof Cash Flows.
Cash balances from all funds are pooled and invested, to the extent available, in certificates of deposit and other
authorized investments, except for cash held with fiscal agent which is nonpooled. Earnings from such investments are
allocated on the basis of applicable participation by each of the funds.
The City may also invest idle funds as authorized by Minnesota statutes, as follows:
1.Direct obligations or obligations guaranteed by the United States or its agencies.
2.Shares of investment companies registered under the Federal Investment Company Act of 1940 and received
the highest credit rating, rated in one of the two highest rating categories by a statistical rating agency, and have
a final maturity of thirteen months or less.
3.General obligations of a state or local government with taxing powers rated “A” or better; revenue obligations
rated “AA” or better.
4.General obligations of the Minnesota Housing Finance Agency rated “A” or better.
5.Obligation of a school district with anoriginal maturity not exceeding 13 months and (i) rated in the highest
category by a national bond rating service or (ii) enrolled in the credit enhancement program pursuant to statute
section 126C.55.
6.Bankers’acceptances of United States banks eligiblefor purchase by the Federal Reserve System.
7.Commercial paper issued by United States banks corporations or their Canadian subsidiaries, of highest quality
category by at least two nationally recognized rating agencies, and maturing in 270 days or less.
8.Repurchase or reverse repurchase agreements and securities lending agreements with financial institutions
qualified as a “depository” by the government entity, 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.
9.Guaranteed Investment Contracts (GIC’s) issued or guaranteed by a United States commercial bank, a domestic
branch of a foreign bank, a United States insurance company, or its Canadian subsidiary, whose similar debt
obligations were rated in one of the top two rating categories by a nationally recognized rating agency.
Investments for the City are reported at fair value.
The Minnesota Municipal Money Market Fund and broker money market investment pools operate in accordance with
appropriate State laws and regulationsand is regulated by Minnesota Statutes and the Board of Directors of the League
of Minnesota Cities. The 4M Fund is an external investment pool not registered with the Securities and Exchange
Commission (SEC); however, it follows the same regulatory rules of the SEC under rule 2a7. The reported value of the
pool is the same as the fair value of the pool share. Financial statements of the 4M Fund can be obtained by contracting
RBC Global Asset Managementat 100 South Fifth Street, Suite 2300, Minneapolis, MN55402- 1240.
-54-
CITY OF ALBERTVILLE, MINNESOTA
NOTES TO THE FINANCIAL STATEMENTS
DECEMBER 31, 2015
Note 1:SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - CONTINUED
Property taxes
The City Council annually adopts a tax levy in December and certifies it to the County for collection in the following
year. The County is responsible for collecting all property taxes for the City. These taxes attach an enforceable lien on
taxable property within the City on January 1 and are payable by the property owners in two installments. The taxes are
collected by the County Auditor and tax settlements are made to the City during January, June, and November each year.
Delinquent taxes receivable include the past six years’ uncollected taxes. Delinquent taxes have been offset by a deferred
inflow of resources for 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. To the extent considered necessary,
the City annually certifies delinquent water and sewer accounts to the County for collection in the following year.
Therefore, there has been no allowance for doubtful accounts established.
Special assessments
Special assessments represent the financing for public improvements paid for by benefiting property owners. These
assessments are recorded as receivables upon certification to the County. Special assessments are recognized as revenue
when they are received in cash or within 60 days after year end. All governmental fund special assessments receivable
are offset by a deferred inflow of resourcesin the fund financial statements.
Interfund receivables and payables
All outstanding balances between funds are reported as “due to/from other funds” or “advances 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.”
Land held for resale
The City acquires properties for redevelopment purposes. These properties are reported at their net realizable value in the
financial statements. Any costs incurred that are above a property’s net realizable value are reported as expenditures of
the current period. The balance of land held for resale is offset with nonspendableor restricted fund balance to indicate
that it is not available for appropriation.
Notesreceivable
Notesreceivable include amounts paid by or loaned by the City that will be paid back by other entities.
Inventories
All inventories are stated at the lower of cost or market on the first-in, first-out (FIFO) method. Inventories in
governmental funds are recorded as expenditures when consumed rather than when purchased.
-55-
CITY OF ALBERTVILLE, MINNESOTA
NOTES TO THE FINANCIAL STATEMENTS
DECEMBER 31, 2015
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 oneyear
and an initialindividual cost of more than the following:
CategoryCost
Land/land improvements$10,000
Other improvements25,000
Infrastructure100,000
Buildings25,000
Building improvements25,000
Vehicles5,000
Other equipment5,000
Intangible assets10,000
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 back trending(i.e., estimating the current replacement cost of the infrastructure to be
capitalized and using an appropriate price-level index to deflate the cost to the acquisition year or estimated acquisition
year). As the City constructs or acquires capital assets each period, including infrastructure assets, they are capitalized
and reported at historical cost. The reported value excludes normal maintenance and repairs which are essentially
amounts spent in relation to capital assets that do not increase the capacity or efficiency of the item or extend its useful
life beyond the original estimate. In the case of donations the City values these capital assets at the estimated fair value
of the item at the date of its donation.
Property, plant and equipment will be depreciated using the straight-line method over the following estimated useful
lives:
Useful Lives
Assetsin Years
Land improvements5 to 30
Infrastructure15 to 50
Buildings15 to 40
Vehicles3 to 15
Other Equipment3 to 20
-56-
CITY OF ALBERTVILLE, MINNESOTA
NOTES TO THE FINANCIAL STATEMENTS
DECEMBER 31, 2015
Note 1:SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - CONTINUED
Deferred outflows of resources
In addition to assets, the statement of financial position will sometimes report a separate section for deferred outflows of
resources. This separate financial statement element, deferred outflows of resources, represents a consumption of net
position that applies to a future period(s) and so will not be recognized as an outflow of resources (expense/ expenditure)
until then. The City has twoitems that qualifyfor reporting inthis category. The losson refunding bonds reported in the
government-wide statement of net position. A losson refunding results from the difference in the carrying value of
refunded debt and its reacquisition price. This amount is deferred and amortized over the shorter of the life of the
refunded or refunding debt.The item, deferred pension resources, is reported only in the statements of net position. This
item results from actuarial calculations and current year pension contributions made subsequent to the measurement date.
Pensions
For purposes of measuring the net pension liability(asset), deferred outflows/inflows of resources, and pension expense,
information about the fiduciary net position of the Public Employees Retirement Association (PERA)and Fire Relief
Association (FRA)and additions to/deductions from PERA’s and the FRA’s fiduciary net position have been determined
on the same basis as they are reported by PERAand the FRAexcept that PERA’s fiscal year end is June 30. For this
purpose, plan contributions are recognized as of employer payroll paid dates and benefit payments and refunds are
recognized when due and payable in accordance with the benefit terms. Investments are reported at fair value.
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.
Postemployment benefits other than pensions
In August 2004, the Governmental Accounting Standards Board (GASB) issued Statement No. 45, Accounting and
Financial Reporting by Employers for Postemployment Benefits Other Than Pensions, effective for the City’s fiscal year
2009.Statement No. 45 requires accrual-based measurement, recognition and disclosure of other postemployment
benefits (OPEB) expense,such as retiree medical and dental costs, over the employees’ years of service, along with the
related liability, net of any plan assets.The City has no plans that would result in an OPEB liability and, therefore, the
City anticipates it will not incur any future explicit orimplicit OPEB costs for its employees and, therefore, no liability
will be recorded.
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 position.The recognition of bond premiums and discounts, are
amortized over the life of the bonds using the straight line method. Bonds payable are reported net of the applicable
bond premium or discount. Bond issuance costs are reported as an expense in the period incurred.
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 financing sources while discounts on debt issuances are
reported as other financing uses. Issuance costs, whether or not withheld from the actual debtproceeds received, are
reported as debt service expenditures.
-57-
CITY OF ALBERTVILLE, MINNESOTA
NOTES TO THE FINANCIAL STATEMENTS
DECEMBER 31, 2015
Note 1:SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - CONTINUED
Deferred inflows of resources
In addition to liabilities, the statement of financial position and fund financial statements will sometimes report a
separate section for deferred inflows of resources. This separate financial statement element, deferred inflows of
resources, represents an acquisition of net position that applies to a future period(s) and so will not be recognized as an
inflow of resources (revenue) until that time. The City has only one type of item, which arises only under a modified
accrual basis of accounting that qualifies for reporting in this category. Accordingly, the item, unavailable revenue, is
reported only in the governmental funds balance sheet. The governmental funds report unavailable revenues from three
sources: property taxes, special assessments and notes receivable. These amounts are deferred and recognized as an
inflow of resources in the period that the amounts become available.
The City has an additional item which qualifies for reporting in this category. The item, deferred pension resources, is
reported only in the statements of net position and results from actuarial calculations.
Fund balance
In the fund financial statements, fund balance is divided into five classifications based primarily on the extent to which
the City is bound to observe constraints imposed upon the use of resources reported in the governmental funds. These
classifications are defined as follows:
Nonspendable - Amounts that cannot be spent because they are not in spendable form, such as land held for resale.
Restricted - Amounts related to externally imposed constraints establishedby creditors, grantors or contributors; or
constraints imposed by state statutory provisions.
Committed - Amounts constrained for specific purposes that are internally imposed by formal action (resolution) of
the City Council, which is the City’s highest level of decision-making authority. Committed amounts cannot be
used for any other purpose unless the City Council modifies or rescinds the commitment by resolution.
Assigned - Amounts constrained for specific purposes that are internally imposed. In governmental funds other than
the General fund, assigned fund balance represents all remaining amounts that are not classified as nonspendable
and are neither restricted nor committed. In the General fund, assigned amounts represent intended uses established
by the City Council itself or by an official to which the governing body delegates the authority. The City Council
has adopted a fund balance policy which delegates the authority to assign amounts for specific purposes to the
Finance Directorand/orCity Administrator.
Unassigned - The residual classification for the General fund and also negative residual amounts in other funds.
The City considers restricted amounts to be spent first when both restricted and unrestricted fund balance is available.
Additionally, the City would first use committed, then assigned, and lastly unassigned amounts of unrestricted fund
balance when expenditures are made.
The City has formally adopted a fund balance policy for the General fund. The City’s policy is to maintain a minimum
unassigned fund balance of 35percentof next year’s budgeted operating expenditures for cash-flow timing needs.
-58-
CITY OF ALBERTVILLE, MINNESOTA
NOTES TO THE FINANCIAL STATEMENTS
DECEMBER 31, 2015
Note 1:SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - CONTINUED
Net position
Net position represents the difference between assets, deferred outflows of resources, liabilities and deferred inflows of
resources. Net position is displayed in three components:
a.Net investment in capital assets - Consists of capital assets, net of accumulated depreciation reduced by any
outstanding debt attributable to acquire capital assets.
b.Restricted net position - Consist of net position 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 position - All other net positions that do not meet the definition of “restricted” or “net
investment in capital assets”.
Note 2:STEWARDSHIP, COMPLIANCE AND ACCOUNTABILITY
A.Budgetary information
An annual budgetisadopted 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 Administratorso that a
budget may be prepared. Before September 15, the proposed budget is presented to the City Council for review. The
City Council holds public hearings and a finalbudget 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 City Council. The legal level of budgetary control is the department
level. Budgeted amounts are as originally adopted by the City Council. There were budget amendments made in 2015.
B.Deficit fund equity
The following funds had deficit fund balances as of December 31, 2015:
Fund
Amount
Major
Prairie Run$566,897
Nonmajor
TIF #14 Fraser Steel109,760
TIF #17 Old Castle162,889
The deficit fund balances will be eliminated withsales of land held for resaleand/or transfers from other fundsand
future tax increment.
-59-
CITY OF ALBERTVILLE, MINNESOTA
NOTES TO THE FINANCIAL STATEMENTS
DECEMBER 31, 2015
Note 2:STEWARDSHIP, COMPLIANCE AND ACCOUNTABILITY - CONTINUED
C.Excess of expenditures over appropriations
For the year ended December 31, 2015expenditures exceed appropriations in the following functions of the General
fund:
Excess of
Expenditures
Over
FunctionBudgetActualAppropriations
Culture and recreation$307,405$387,025$79,620
Economic Development5,0005,496496
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 and
investments 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 City Council, the City maintains deposits
at those depository banks, all of which are members of the Federal Reserve System.
Minnesota statutes require that all City deposits be protected by insurance, surety bond or collateral. The market value
of collateral pledged must equal 110 percent of the deposits not covered by insurance, bonds, or irrevocable standby
letters of credit from Federal Home Loan Banks.
Authorized collateral in lieu of a corporate surety bond includes:
United States government Treasury bills, Treasury notes, Treasury bonds;
Issues of United States government agencies and instrumentalities as quoted by a recognized industry quotation
service available to the government entity;
General obligation securities of any state or local government with taxing powers which is rated “A” or better
by a national bond rating service, or revenue obligation securities of any state or local government with taxing
powers which is rated “AA” or better by a national bond rating service;
General obligation securities of a local government with taxing powers may be pledged as collateral against
funds deposited by that same local government entity;
Irrevocable standby letters of credit issued by Federal Home Loan Banks to a municipality accompanied by
written evidence that the bank’s public debt is rated “AA” or better by Moody’s Investors Service, Inc., or
Standard & Poor’s Corporation; and
Time deposits that are fully insured by any federal agency.
Minnesota statutes require that all collateral shall be placed in safekeeping in a restricted account at a Federal Reserve
Bank, or in an account at a trust department of a commercial bank or other financial institution that is not owned or
controlled by the financial institution furnishing the collateral. The selection should be approved by the government
entity.
At year end, the City’s carrying amount of deposits was $3,184,331and the bank balance was $3,244,803.Of the bank
balance, $773,309was covered by federal depository insurance and $2,471,494was covered by collateral held by the
City’s agent in the City’s name.
-60-
CITY OF ALBERTVILLE, MINNESOTA
NOTES TO THE FINANCIAL STATEMENTS
DECEMBER 31, 2015
Note 3:DETAILED NOTES ON ALL FUNDS - CONTINUED
Cash and investments summary
A reconciliation of cash and temporary investments as shown on the financial statements for the City follows:
Carrying amount of deposits$3,184,331
Investments16,028,778
Cash on hand849
Total$19,213,958
Cash and investments
Statement of net position
Cash and temporary investments$18,277,299
Statement of Fiduciary net position936,659
Total$19,213,958
Investments
The Minnesota Municipal Money Market Fund (the 4M Fund) is a customized cash management and investment
program for Minnesota public funds. Sponsored and governed by the League of Minnesota Cities since 1987,the 4M
Fund is a unique investment alternative designed to address the daily and long term investment needs of Minnesota cities
and other municipal entities. Allowable under Minnesotastatutes, the 4M Fund is comprised of top quality, rated
investments.
As of December 31, 2015, the City had the following investments:
Maturities
FairLess ThanOne toMore Than
Investment Type
ValueOne YearTwo YearsTwo Years
Pooled
Minnesota Municipal Money Market$7,513,371$7,513,371$-$-
Brokered Money Market295,301295,301--
US Government Securities347,858--347,858
Municipal Bonds3,152,376319,016496,7932,336,567
Brokered Certificates of Deposit4,719,872100,553544,3644,074,955
Total$16,028,778$8,228,241$1,041,157$6,759,380
Maximum
Maturity
Investments
Less than one year51%
One to two years7
More than two years42
-61-
CITY OF ALBERTVILLE, MINNESOTA
NOTES TO THE FINANCIAL STATEMENTS
DECEMBER 31, 2015
Note 3:DETAILED NOTES ON ALL FUNDS - CONTINUED
Municipal BondsRating (1)
Aaa
Linn County, IA
Aa3
Whitewater, WI
Aa2
Western Lake Superior Sanitary District, MN
Aa2
Kirkwood Cmnty College Iowa New Jobs Training
Aa1
Iowa Westn Cmnty College New Jobs Training
Aa1
Hawkeye Cmnty College Iowa Indl - New Jobs
Aa2
Waterloo Iowa Taxable Ser B
Aa2
Duluth Minn RFDG Taxable
A1
Grand Rapids Minn Taxable Pub Utils
Municipal BondsRating (2)
AA+
Mower County, MN
AAA
Minneapolis Minn RFDG Tax Increment
AA-
Kaukauna, WI
A
Elbow Lake Minn RFDG Taxable
A
Clarion Iowa Cap LN NTS-SER A-Build Amer
AA+
Proctor Minn Indept Sch Dist 704
AA+
Richfield Minn Indept Sch Dist 280
AA+
Becker Minn Indept Sch Dist 726
U.S. Government SecuritiesRating (2)
Federal Home Loan BankAA+
(1) Ratings provided by Moody’s Investor Services.
(2) Ratings provided by S&P.
The investments of the City are subject to the following risks:
Credit Risk. Credit risk is the risk that an issuer or other counterparty to an investment will not fulfill its
obligations. Ratings are provided by various credit rating agencies and where applicable, indicate associated
credit risk. Minnesota statutes and the City’s investment policy limit the City’s investments to the list on
page 54 of the notes.
Custodial Credit Risk. The custodial credit risk for investments is the risk that, in the event of the failure of the
counterparty to a transaction, a government will not be able to recover the value of investment or collateral
securities that are in the possession of an outside party. The City’s investments held by the broker-dealer were
insured by SIPC or other supplemental insurance as of December 31, 2015. However, each investment
brokerage firm may have a limitto their supplemental insurance and because of the size of the City’s portfolio
in relation to the brokerage firm’s excess SIPC coverage limits the portion of the supplemental policy applicable
to the City’s portfolio is unknown. The City’s investment policy does not address custodial credit risk. The
City accepts the risk due to the controls in place at the broker-dealer.
-62-
CITY OF ALBERTVILLE, MINNESOTA
NOTES TO THE FINANCIAL STATEMENTS
DECEMBER 31, 2015
Note 3:DETAILED NOTES ON ALL FUNDS - CONTINUED
Concentration of Credit Risk. Concentration of credit risk is the risk of loss attributed to the magnitude of a
government's investment in a single issuer. In accordance with the City’s investment policy, the City diversifies
its investment portfolio to eliminate the risk of loss resulting from over-concentration of assets in a specific
maturity, a specific issuer or a specific class of securities. The maturities selected shall providefor stability of
income and reasonable liquidity.
Interest Rate Risk.Interest rate risk is the risk that changes in interest rates will adversely affect the fair value of
an investment. 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 an average expected life of ten years from the date of the purchase.
B.Capital assets
Capital asset activityfor the year ended December 31, 2015 was as follows:
BeginningEnding
BalanceIncreasesDecreasesBalance
Governmental activities
Capital assets not being depreciated
Land$3,658,084$-$-$3,658,084
Construction in progress460,986461,794(390,962)531,818
Total capital assets
not being depreciated4,119,070461,794(390,962)4,189,902
Capital assets being depreciated
Buildings6,244,541--6,244,541
Infrastructure27,885,892--27,885,892
Land improvements1,743,982548,126-2,292,108
Machinery and equipment528,3145,204-533,518
Vehicles1,459,834100,596-1,560,430
Total capital assets
being depreciated37,862,563653,926-38,516,489
Less accumulated depreciation for
Buildings(1,525,876)(152,864)-(1,678,740)
Infrastructure(15,259,309)(959,160)-(16,218,469)
Land improvements(752,936)(112,693)-(865,629)
Machinery and equipment(247,278)(41,153)-(288,431)
Vehicles(1,160,099)(68,695)-(1,228,794)
Total accumulated
depreciation(18,945,498)(1,334,565)-(20,280,063)
Total capital assets
being depreciated, net18,917,065(680,639)-18,236,426
Governmental activities
capital assets, net$23,036,135$(218,845)$(390,962)$22,426,328
-63-
CITY OF ALBERTVILLE, MINNESOTA
NOTES TO THE FINANCIAL STATEMENTS
DECEMBER 31, 2015
Note 3:DETAILED NOTES ON ALL FUNDS - CONTINUED
BeginningEnding
BalanceIncreasesDecreasesBalance
Business-type activities
Capital assets not being depreciated
Land$351,834$-$-$351,834
Construction in progress750,019502,274(876,519)375,774
Total capital assets not
being depreciated1,101,853502,274(876,519)727,608
Capital assets being depreciated
Buildings4,702,684--4,702,684
Infrastructure10,577,290876,518-11,453,808
Machinery and equipment257,585--257,585
Vehicles427,0419,406-436,447
Total capital assets
being depreciated15,964,600885,924-16,850,524
Less accumulated depreciation for
Buildings(1,053,255)(117,567)-(1,170,822)
Infrastructure(3,588,725)(234,697)-(3,823,422)
Machinery and equipment(186,077)(17,048)-(203,125)
Vehicles(182,818)(48,556)-(231,374)
Total accumulated
depreciation(5,010,875)(417,868)-(5,428,743)
Total capital assets
being depreciated, net10,953,725468,056-11,421,781
Business-type activities
capital assets, net$12,055,578$970,330$(876,519)$12,149,389
Depreciation expense was charged to functions/programs of the City as follows:
Governmental activities
General government$110,972
Public safety75,318
Public works1,042,159
Culture and recreation106,116
Total depreciation expense - governmental activities$1,334,565
Business-type activities
Sewer$335,047
Water58,347
Storm Water24,474
Total depreciation expense - business-type activities$417,868
-64-
CITY OF ALBERTVILLE, MINNESOTA
NOTES TO THE FINANCIAL STATEMENTS
DECEMBER 31, 2015
Note 3:DETAILED NOTES ON ALL FUNDS - CONTINUED
C.Construction commitments
The City has active construction projects as of December 31, 2015. At year end, the City’s commitments with the
contractors are as follows:
Remaining
Project
Spent-to-DateCommitment
57th Street and Utility Improvements$782,599$92,013
D.Advances to/from other fundsand transfers
The composition of interfund balances as of December 31, 2015, is as follows:
Receivable FundPayable Fund
Amount
SewerDebt Service$555,441
SewerPrairie Run568,842
Nonmajor GovernmentalNonmajor Governmental109,760
Debt ServiceNonmajor Governmental162,889
Total interfund balances$1,396,932
The above fundsadvanced the abovebalancesto eliminate their deficit cash balances.No interest is chargedon the
above balances.
Interfund transfers
Transfer in
Capital
OutlayPrairie
Fund
ReserveRunTotal
Transfer out
General$300,000
$-$300,000
Capital Outlay Reserve-44,00044,000
Total$300,000$44,000$344,000
Transfers were made for the following purposes:
To fund capital improvement projects and equipment purchases
The General fund transferred $300,000to the Capital Outlay Reserve fund.
Other
The Capital Outlay Reservefund transferred $44,000to the Prairie Rundfund as budgeted.
-65-
CITY OF ALBERTVILLE, MINNESOTA
NOTES TO THE FINANCIAL STATEMENTS
DECEMBER 31, 2015
Note 3:DETAILED NOTES ON ALL FUNDS - CONTINUED
E.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 activitiesand business-typeactivities. 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 ofthe City.
General obligation special assessment bondsand improvement notes
The following bonds were issued to financevarious improvement projects in the Cityand will be repaid with the
collection of special assessment levies.
Interest
IssueMaturityBalance at
DescriptionRate
AuthorizedIssuedDateDateYear End
G.O. Improvement
Refunding Bonds,
Series 2008B$560,000$560,0002.80 - 3.4003/13/0802/01/18$180,000
G.O. Improvement
Refunding Bonds,
Series 2011B835,000835,0002.00 - 2.6004/21/1102/01/19430,000
G.O. Improvement
Refunding Bonds,
Series 2011C1,825,0001,825,0002.00 - 3.3508/25/1102/01/251,370,000
G.O. Improvement Refunding
Bonds, Series 2012A2,310,0002,310,0001.00 - 2.0004/10/1202/01/232,310,000
G.O. Improvement
Refunding Bonds,
Series 2012B3,215,0003,215,0000.50 - 2.3505/10/1212/01/252,365,000
General Obligation Improvement
Note, Series 20124,113,7003,278,5511.27703/23/1208/20/323,073,000
G.O. Improvement
Refunding Bonds,
Series 2014A655,000655,0001.0011/06/1402/01/17655,000
Total G.O. Special Assessment Bonds and Improvement Notes$ 10,383,000
-66-
CITY OF ALBERTVILLE, MINNESOTA
NOTES TO THE FINANCIAL STATEMENTS
DECEMBER 31, 2015
Note 3:DETAILED NOTES ON ALL FUNDS - CONTINUED
Annual debt service requirements to maturity for general obligation special assessment bonds are as follows:
Governmental ActivitiesBusiness-type Activities
Year Ending
December 31,PrincipalInterestTotalPrincipalInterestTotal
2016$963,240$169,037$1,132,277$68,760$10,226$78,986
2017962,822155,4571,118,27968,1789,54177,719
2018992,000139,5861,131,58670,0008,50078,500
2019939,000122,0711,061,07175,0007,05082,050
2020856,000105,667961,66775,0005,55080,550
2021 - 20253,727,000286,9574,013,957240,0007,400247,400
2026 - 2030949,00062,0241,011,024---
2031 - 2032397,0007,624404,624---
Total$9,786,062$1,048,423$10,834,485$596,938$48,267$645,205
General obligation revenue bonds
The following bonds were issued to financecapital improvements in the enterprise funds. They will be repaid from
future net operating revenues and transfers in from the enterprise funds and are backed by the taxing power of the City.
Annual net operating revenues and transfers in, principal and interest payments, and the percentage of revenue required
to cover principal and interest payment are as follows:
SewerWaterStorm
Net operating revenues$849,344$272,689$222,747
Principal and interest2,887,17311,022657,977
Percentage of revenues340%4%295%
Interest
AuthorizedIssueMaturityBalance at
DescriptionRate
and IssuedDateDateYear End
G.O. Sewer Revenue
Refunding Bonds,
Series 2008A805,0002.00 - 3.2003/13/0802/01/16$210,000
G.O. Utility Revenue
Bonds, Series 2011A520,0001.10 -3.7004/21/1102/01/26395,000
G.O. Sewer Revenue
Refunding Bonds,
Series 2013A2,515,000.70 - 2.1001/24/1312/01/252,515,000
Total G.O. Revenue Bonds$3,120,000
-67-
CITY OF ALBERTVILLE, MINNESOTA
NOTES TO THE FINANCIAL STATEMENTS
DECEMBER 31, 2015
Note 3:DETAILED NOTES ON ALL FUNDS - CONTINUED
Annual debt service requirements to maturity for general obligation revenue bonds are as follows:
Business-type Activities
Year Ending
December 31,PrincipalInterest Total
2016$485,000$51,877$536,877
2017270,000$46,173316,173
2018275,00043,354318,354
2019280,00039,906319,906
2020280,00035,855315,855
2021 - 20251,490,000101,0851,591,085
202640,00074040,740
Total$3,120,000$318,990$3,438,990
Changes in long-term liabilities
Long-term liability activity for the year ended December 31, 2015was as follows:
BeginningEndingDue Within
BalanceIncreasesDecreasesBalanceOne Year
Governmental activities
Bonds payable
G.O. Special
Assessment bonds$12,742,913$235,000$(3,191,851)$9,786,062$963,240
Unamortized premium64,549-(5,294)59,255-
Total bonds payable12,807,462235,000(3,197,145)9,845,317963,240
Compensated
absences payable49,57772,289(32,953)88,91366,685
Governmental activity
long-term liabilities$12,857,039$307,289$(3,230,098)$9,934,230$1,029,925
Business-type activities
Bonds payable
G.O. Revenue bonds$5,855,000$-$(2,735,000)$3,120,000$485,000
Unamortized premium190-(18)172-
G.O. Special
Assessment bonds1,231,938-(635,000)596,93868,760
Unamortized premium10,453-(1,306)9,147-
Total bonds payable7,097,581-(3,371,324)3,726,257553,760
Compensated
absences payable37,36630,538(31,525)36,37927,284
Business-type activity
long-term liabilities$7,134,947$30,538$(3,402,849)$3,762,636$581,044
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 would be liquidated
through the General fund.
-68-
CITY OF ALBERTVILLE, MINNESOTA
NOTES TO THE FINANCIAL STATEMENTS
DECEMBER 31, 2015
Note 3:DETAILED NOTES ON ALL FUNDS - CONTINUED
Crossover refundings
On April 10, 2012 the City issued $2,310,000 of General Obligation Improvement Crossover Refunding Bonds, Series
2012A. The bond issued will crossover refund the General Obligation Improvement Bonds, Series 2007A. The proceeds of
the bonds were deposited in an escrow account and will be used to pay issuance cost and to purchase securities bearing
interest at such interest rates to provide sufficient funds to refund old bonds. The bonds will be refunded on August 1, 2015.
The escrow account will also provide debt service payments on the new bond until the crossover date. The old bonds are not
considered defeased until the crossover dates and therefore will not be removed as liabilities. As a result of the crossover
refunding issue, the City will save $162,072 in debt service payments and achieve an economic gain (the present value of the
difference between the old and the new debt service) of $145,447.
On January 24, 2013 the City issued $2,515,000 of General Obligation Sewer Revenue Crossover Refunding Bonds, Series
2013A. The bond issued will crossover refund the General Obligation Sewer Revenue Bonds, Series 2005A. The proceeds of
the bonds were deposited in an escrow account and will be used to pay issuance cost and to purchase securities bearing
interest at such interest rates to provide sufficient funds to refund old bonds. The bonds will be refunded on December 1,
2015. The escrow account will also provide debt service payments on the new bond until the crossover date. The old bonds
are not considered defeased until the crossover dates and therefore will not be removed as liabilities. As a result of the
crossover refunding issue, the City will save $182,340 in debt service payments and achieve an economic gain (the present
value of the difference between the old and the new debt service) of $157,967.
Current refundings
On November 6, 2014 the City issued $655,000 of General Obligation Improvement Refunding Bonds, Series 2014A. The
bond issued refunded the General Obligation Improvement Bonds, Series 2007A. The proceeds of the bonds were deposited
into the City’s account and will be used to refund the old bonds. The bonds will be refunded on February 1, 2015. The old
bonds are not considered defeased until the refund date and therefore will not be removed as liabilities. As a result of the
refunding issue, the City will save $17,443 in debt service payments and achieve an economic gain (the present value of the
difference between the old and the new debt service) of $17,208.
-69-
CITY OF ALBERTVILLE, MINNESOTA
NOTES TO THE FINANCIAL STATEMENTS
DECEMBER 31, 2015
Note 3:DETAILED NOTES ON ALL FUNDS - CONTINUED
F.Components of fund balance
At December 31, 2015, portions of the City’s fund balance are not available for appropriation due to not being in
spendable form (Nonspendable), legal restrictions (Restricted), City Council action (Committed), policyand/or intent
(Assigned). The following is a summary of the components of fund balance:
Fund
PurposeAmount
Nonspendable
GeneralLand held for resale$51,000
Prairie RunLand held for resale2,695
Restricted
Debt ServiceDebt Service2,853,966
Other governmental fundsRevolving loan181,156
Other governmental fundsTax Increment Financing57,551
Other governmental fundsPark improvements171,198
Assigned
Capital Outlay ReserveFuture capital projects5,828,259
Other governmental fundsUtility and road system improvements141,115
Unassigned
General1,876,186
Prairie Run(569,592)
Other governmental funds(272,649)
Total$10,320,885
Note 4:DEFINED BENEFIT PENSION PLANS - STATEWIDE
A.Plan description
The City participates in the following cost-sharing multiple-employer defined benefit pension plans administered by the
Public Employees Retirement Association of Minnesota (PERA). PERA’s defined benefit pension plans are established
and administered in accordance with Minnesota statutes, chapters 353 and 356. PERA’s defined benefit pension plans
are tax qualified plans under Section 401 (a) of the Internal Revenue Code.
General Employees Retirement Fund (GERF)
All full-time and certain part-time employees of the City are covered by the General Employees Retirement Fund
(GERF). GERF 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. The Basic Plan was closed to new members in 1967. All
new members must participate in the Coordinated Plan.
Public Employees Police and Fire Fund (PEPFF)
The PEPFF, originally established for police officers and firefighters not covered by a local relief association, now
covers all police officers and firefighters hired since 1980. Effective July 1, 1999, the PEPFF also covers police officers
and firefighters belonging to a local relief association that elected to merge with and transfer assets and administration to
PERA.
-70-
CITY OF ALBERTVILLE, MINNESOTA
NOTES TO THE FINANCIAL STATEMENTS
DECEMBER 31, 2015
Note 4:DEFINED BENEFIT PENSION PLANS - STATEWIDE - CONTINUED
B.Benefits provided
PERA provides retirement, disability and death benefits. Benefit provisions are established by Minnesota statute and can
only be modified by the state legislature.
Benefit increases are provided to benefit recipients each January. Increases are related to the funding ratio of the plan.
Members in plans that are at least 90 percent funded for two consecutive years are given 2.5 percent increases. Members
in plans that have not exceeded 90 percent funded, or have fallen below 80 percent, are given 1 percent increases.
The benefit provisions stated in the following 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.
GERF benefits
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 2.2percent of average
salary for each of the first ten years of service and 2.7percent 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 ten years and 1.7percent for each
remaining year. Under Method 2, the annuity accrual rate is 2.7percent of average salary for Basic Plan members and
1.7percent for Coordinated Plan members for each year of service. For members hired prior to July 1, 1989, a full
annuity is available when age plus years of service equal 90 and normal retirement age is 65. For membershired on or
after July 1, 1989, normal retirement age is the age for unreduced Social Security benefits capped at 66.
PEPFF benefits
Benefits for the PEPFF members first hired after June 30, 2010, but before July 1, 2014, vest on a prorated basis from
50percent after five years up to 100 percent after ten years of credited service. Benefits for PEPFF members first hired
after June 30, 2014, vest on a prorated basis from 50 percent after ten years up to 100percent after twentyyears of
credited service. The annuity accrual rate is 3percent of average salary for each year of service.
For PEPFF who were first hired prior to July 1, 1989, a full annuity is available when age plus years of service equal at
least 90.
C.Contributions
Minnesota statutes, chapter 353 sets the rates for employer and employee contributions. Contribution rates can only be
modified by the state legislature.
GERF contributions
Basic Plan members and Coordinated Plan members were required to contribute 9.10 percent and 6.50percent,
respectively, of their annual covered salary in calendar year 2015. The City was required to contribute 11.78percent of
pay for Basic Plan members and 7.50 percent for Coordinated Plan members in calendar year 2015. The City’s
contributions to the GERF for the years ending December 31, 2015,2014and 2013were $66,929, $63,505and $61,435
respectively.The City’s contributions were equal to the contractually required contributions for each year as set by
Minnesota statute.
PEPFF contributions
Plan members were required to contribute 10.8 percent of their annual covered salary in calendar year 2015. The City
was required to contribute 16.20 percent of pay for PEPFF members in calendar year 2015. The City’s contributions to
the PEPFF for the years ending December 31, 2015,2014and 2013were $9,943, $0 and $0respectively. The City’s
contributions were equal to the contractually required contributions for each year as set by Minnesota statute.
-71-
CITY OF ALBERTVILLE, MINNESOTA
NOTES TO THE FINANCIAL STATEMENTS
DECEMBER 31, 2015
Note 4:DEFINED BENEFIT PENSION PLANS - STATEWIDE - CONTINUED
D.Pension costs
GERF pension costs
At December 31, 2015, the City reported a liability of $777,379for its proportionate share of the GERF’s net pension
liability. The net pension liability was measured as of June 30, 2015, and the total pension liability used to calculate the
net pension liability was determined by an actuarial valuation as of that date. The City’s proportion of the net pension
liability was based on the City’s contributions received by PERA during the measurement period for employer payroll
paid dates from July 1, 2014through June 30, 2015relative to the total employer contributions received from all of
PERA’s participating employers. At June 30, 2015, the City’s proportionate share was 0.0150percent which was a
decrease of 0.0011percent from its proportion measured as of June 30, 2014.
For the year ended December 31, 2015, the City recognized pension expense of $103,623for its proportionate share of
GERF’s pension expense.
At December 31, 2015, the City reported its proportionate share of GERF’s deferred outflows of resources and deferred
inflows of resources, and its contributions subsequent to the measurement date, from the following sources:
DeferredDeferred
OutflowsInflows
of Resourcesof Resources
Differences between expected and
actual experience$7,738$39,193
Changes in actuarial assumptions47,884-
Net difference between projected and
actual earnings on plan investments-69,201
Changes in proportion-44,637
Contributions to GERF subsequent
to the measurement date36,400-
Total$92,022$153,031
Deferred outflows of resources totaling$36,400related to pensions resulting from the City’s contributions to GERF
subsequent to the measurement date will be recognized as a reduction of the net pension liability inthe year ended
December 31, 2016. Other amounts reported as deferred outflows and inflows of resources related to GERF pensions
will be recognized in pension expense as follows:
2016$(29,331)
2017(29,331)
2018(57,142)
201918,398
2020-
Thereafter-
-72-
CITY OF ALBERTVILLE, MINNESOTA
NOTES TO THE FINANCIALSTATEMENTS
DECEMBER 31, 2015
Note 4:DEFINED BENEFIT PENSION PLANS - STATEWIDE - CONTINUED
PEPFF pension costs
At December 31, 2015, the City reported a liability of $102,261for its proportionate share of the PEPFF’s net pension
liability. The net pension liability was measured as of June 30, 2015, and the total pension liability used to calculate the
net pension liability was determined by an actuarial valuation as of that date. The City’s proportion of the net pension
liability was based on the City’s contributions received by PERA during the measurement period for employer payroll
paid dates from July 1, 2014through June 30, 2015relative to the total employer contributions received from all of
PERA’s participating employers. At June 30, 2015, the City’s proportionate share was 0.0090percent which was an
increaseof 0.0090percent from its proportion measured as of June 30, 2014.
For the year ended December 31, 2015, the City recognized pension expense of$10,395for its proportionate share of
PEPFF’s pension expense.
At December 31, 2015, the City reported its proportionate share of PEPFF’s deferred outflows of resources and deferred
inflows of resources, and its contributions subsequent to the measurement date, from the following sources:
DeferredDeferred
OutflowsInflows
of Resourcesof Resources
Differences between expected and
actual experience$-$16,583
Changes in actuarial assumptions19,546
Net difference between projected and
actual earnings on plan investments-18,156
Changes in proportion100,613-
Contributions to PEPFF subsequent
to the measurement date7,256-
Total$127,415$34,739
Deferred outflows of resources totaling $7,256related to pensions resulting from the City’s contributions to PEPFF
subsequent to the measurement date will be recognized as a reduction of the net pension liability in the year ended
December 31, 2016. Other amounts reported as deferred outflows and inflows of resources related to GERF pensions
will be recognized in pension expense as follows:
2016$14,155
201714,155
201814,155
201926,146
202016,806
Thereafter-
-73-
CITY OF ALBERTVILLE, MINNESOTA
NOTES TO THE FINANCIAL STATEMENTS
DECEMBER 31, 2015
Note 4:DEFINED BENEFIT PENSION PLANS - STATEWIDE - CONTINUED
E.Actuarial assumptions
The total pension liability in the June 30, 2015actuarial valuation was determined using the following actuarial
assumptions:
Inflation2.75% per year
Active member payroll growth3.50% per year
Investment rate of return7.90%
Salary increases were based on a service-related table. Mortality rates for active members, retirees, survivors and
disabilitants were based on RP-2000 tables for males or females, as appropriate, with slight adjustments. Cost of living
st
benefit increases for retirees are assumed to be: 1 percent effective every January 1until 2034, then 2.5 percent for
GERF and PEPFF.
Actuarial assumptions used in the June 30, 2015valuation were based on the results of actuarial experience studies. The
experience study in the GERF was for the period July 1, 2004 through June 30, 2008, with an update of economic
assumptions in 2014. The experience study for PEPFF was for the period July 1, 2004, through June 30, 2009.
Experience studies have not been prepared for PERA’s other plans, but assumptions are reviewed annually.
There were no changes in actuarialassumptions in 2015.
The long-term expected rate of return on pension plan investments is 7.9 percent. The State Board of Investment, which
manages the investments of PERA, prepares an analysis of the reasonableness of the long-term expected rate of return on
a regular basis using a building-block method in which best-estimate ranges of expected future rates of return are
developed for each major asset class. These ranges are combined to produce an expected long-term rate of return by
weighting the expected future rates of return by the target asset allocation percentages. The target allocation and best
estimates of arithmetic real rates of return for each major asset class are summarized in the following table:
Long-term
TargetExpected Real
AllocationRate of Return
Asset Class
Domestic stocks45.00%5.50%
International stocks15.006.00
Bonds18.001.45
Alternative assets20.006.40
Cash2.000.50
Total100.00%
F.Discount rate
The discount rate used to measure thetotal pension liability was 7.9 percent. The projection of cash flows used to
determine the discount rate assumed that employee and employer contributions will be made at the rate specified in
statute. Based on that assumption, each of the pension plan’s fiduciary net position was projected to be available to
make all projected future benefit payments of current active and inactive employees. Therefore, the long-term expected
rate of return on pension plan investments was applied to all periods of projected benefit payments to determine the total
pension liability.
-74-
CITY OF ALBERTVILLE, MINNESOTA
NOTES TO THE FINANCIAL STATEMENTS
DECEMBER 31, 2015
Note 4:DEFINED BENEFIT PENSION PLANS - STATEWIDE - CONTINUED
G.Pension liability sensitivity
The following presents the City’s proportionate share of the net pension liability for all plans it participates in, calculated
using the discount rate disclosed in the preceding paragraph, as well as what the City’s proportionate share of the net
pension liability would be if it were calculated using a discount rate 1 percentage point lower or 1 percentage point
higher than the current discount rate:
City's Proportionate Share of NPL
1 Percent1 Percent
Decrease (6.90%)Current (7.90%)Increase (8.90%)
GERF$1,222,314$777,379$409,929
PEPFF$199,308$102,261$22,083
H.Pension planfiduciary net position
Detailed information about each defined benefit pension plan’s fiduciary net position is available in a separately-issued
PERA financial report that includes financial statements and required supplementary information. That report may be
obtained on the Internet at www.mnpera.org; by writing to PERA at 60 Empire Drive #200, St. Paul, Minnesota, 55103-
2088; or by calling (651) 296-7460 or (800) 652-9026.
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 Fireman’s Relief Association (the Association). As of December 31, 2014, the plan covered 29active
firefighters and6 vested terminated fire fighters whose pension benefits are deferred. The plan is a single employer
retirement plan and is established and administered in accordance with Minnesota statute, chapter 69.
The Association maintains a separate Special fundto 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 withthe
Volunteer Firefighter’s Relief Association Financing Guidelines Act of 1971 (chapter 261 as amended by chapter509 of
Minnesota statutes 1980). Funds are also derived from investment income.
B.Benefits provided
A fire fighter who completes at least 20 years as an active member of the Department is entitled, after age 50, to a full
service pension upon retirement.
The bylaws of the Association also provide for an early vested service pension for a retiring member who has completed
fewer than 20 years of service. The reduced pension, available to members with 10 years of service, shall be equal to
60percent of the pension as prescribed by the bylaws. This percentage increases 4 percent per year so that at 20 years of
service, the full amount prescribed is paid. Members who retire with less than 20 years of service and have reached the
age of 50 years and have completed at least 10 years of active membership are entitled to a reduced service pension not
to exceed the amount calculated by multiplying the member's service pension for the completed years of service times
the applicable non-forfeitable percentage of pension.
-75-
CITY OF ALBERTVILLE, MINNESOTA
NOTES TO THE FINANCIAL STATEMENTS
DECEMBER 31, 2015
Note 5:DEFINED BENEFIT PENSION PLANS - FIRE RELIEF ASSOCIATION - CONTINUED
C.Contributions
Minnesota statutes, chapters 424 and 424A authorize pension benefits for volunteer fire relief associations. The plan is
funded by fire state aid, investment earnings and, if necessary, employer contributions as specified in Minnesota statutes
and voluntary City contributions (if applicable).The State of Minnesota contributed $61,482in fire state aid to the plan
on behalf of the AlbertvilleFire Department for the year ended December 31, 2015, which was recorded as a revenue.
Required employer contributions are calculated annually based on statutory provisions.The City made no voluntary
contributions to the plan. Furthermore, the firefighter has no obligation to contribute to the plan.
D.Pension costs
At December 31, 2015, the City reported a net pension assetof $190,933for the plan. The net pension assetwas
measured as of December 31, 2014. The total pension assetused to calculate the net pension asset in accordance with
GASB 68 was determined by Hildi, Inc. applying an actuarial formula to specific census data certified by the Department
as of December 31, 2014. The following table presents the changes in net pension liability (asset) during the year.
TotalPlanNet
PensionFiduciaryPension
LiabilityNet PositionLiability (Asset)
(a)(b)(a-b)
Beginning balance January 1, 2014$509,879$677,641$(167,762)
Changes for the year
Service cost14,820-14,820
Interest on pension liability (asset)35,420-35,420
Projected investment earnings-45,479(45,479)
Contributions (employer)-11,877(11,877)
Contributions (State)-37,411(37,411)
Asset (gain)/loss-(16,151)16,151
Administrative costs-(5,205)5,205
Total net changes50,24073,411(23,171)
Ending balance December 31, 2014$560,119$751,052$(190,933)
For the year ended December 31, 2015, the City recognized a negative pension expense of $35,365.
-76-
CITY OF ALBERTVILLE, MINNESOTA
NOTES TO THE FINANCIAL STATEMENTS
DECEMBER 31, 2015
Note 5:DEFINED BENEFIT PENSION PLANS - FIRE RELIEF ASSOCIATION - CONTINUED
At December 31, 2015, the City reported deferred inflows of resources and deferred outflows of resources, its
contributions subsequent to the measurement date, related to pension from the following sources:
Deferred
Outflows
of Resources
Differences between expected and
actual experience$-
Changes in actuarial assumptions-
Net difference between projected and
actual earnings on plan investments12,920
Changes in proportion-
State aid to City subsequent
to the measurement date-
Contributions to plan subsequent
to the measurement date61,482
Total$74,402
Deferred outflows of resources totaling $61,482 related to pensions resulting from the City’s contributions to the plan
subsequent to the measurement date will be recognized as a reduction of the net pension assetin the year ended
December 31, 2016. Other amounts reported as deferred outflows of resources related to the plan will be recognized in
pension expense as follows:
2016$18,601
201718,601
201818,601
201918,599
2020-
Thereafter-
E. Actuarial assumptions
The total pensionassetat December 31, 2014 was determined using the entry age normal actuarial cost method and the
following actuarial assumptions:
Retirement eligibility at 100 percent of age 50
Salary increases2.50% per year
Cost of living increasesN/A
Investment rate of return6.50%
20 year municipal bond yield3.50%
There were no changes in actuarial assumptions in 2014.
The 6.5percent long-term expected rate of return on pension plan investments was determined using a building-block
method in whichbest estimates for expected future real rates of return (expected returns, net of inflation) were developed
for each asset class using the plan’s target investment allocation along with long-term return expectations by asset class.
Inflation expectationswere applied to derive the nominal rate of return for the portfolio.
-77-
CITY OF ALBERTVILLE, MINNESOTA
NOTES TO THE FINANCIAL STATEMENTS
DECEMBER 31, 2015
Note 5:DEFINED BENEFIT PENSION PLANS - FIRE RELIEF ASSOCIATION - CONTINUED
The target allocation and best estimates of arithmetic real rates of return for each major asset class are summarized in the
following table:
Long-term
TargetExpected Real
AllocationRate of Return
Asset Class
Equities51.00%7.50%
Fixed income37.004.00
Real estate9.006.50
Cash3.002.
00
Total100.00%
F. Discount rate
The discount rate used to measure thetotal pension liability was 6.50percent. The projection of cash flows used to
determine thediscount rate assumed that contributions to the plan will be made as specified in statute. Based on that
assumption and considering the funding ratio of the plan, the fiduciary net position was projected to be available to make
all projected future benefit payments of current active and inactive members. Therefore, the long-term expected rate of
return on pension plan investments was applied to all periods of projected benefit payments to determine the total
pension liability.
G. Pension liability sensitivity
The following presents the City’s net pension liability (asset) for the plan, calculated using the discount rate disclosed in
the preceding paragraph, as well as what the City’s net pension liability (asset) would be if it were calculated using a
discount rate 1 percent lower or 1 percent higher than the current discount rate:
1 Percent1 Percent
Decrease (5.50%)Current (6.50%)Increase (7.50%)
Defined benefit plan$(171,846)$(190,933)$(208,088)
H. Pension plan fiduciary net position
The Association issues a publicly available financial report. The report may be obtained by writing to the Albertville
Firemen’s Relief Association, 5959 Main Avenue NE Albertville, Minnesota, 55301.
-78-
CITY OF ALBERTVILLE, MINNESOTA
NOTES TO THE FINANCIAL STATEMENTS
DECEMBER 31, 2015
Note 6: JOINT VENTURES
Joint Powers Water Board of Albertville, Hanover and St. Michael
The Joint Powers Water Board of Albertville, Hanover and St. Michael (the "JPWB") was established under a joint powers
agreement among the Cities of Albertville, Hanover and St. Michael to provide water service to the local area. The JPWB
operates as an enterprise and provides water service to the general public, with the majority of its costs being paid by various
fees and charges to users of the water system. The governing body consists of a six member Board of Commissioners (the
"Board"). Two individuals, the Mayor and another City Council Member from each City, are appointed by their respective
City Council to serve on the Board. The JPWB does not have any component units.
The JPWB' s agreement states that charges billed and collected for water supply remain with the JPWB, while the charges for
distribution are billed by the JPWB but the collections are owned by each member City and will be remitted to them upon
collection.The financial statements from 2014, the most recent available, is summarized below.
th
Separate financial statements can be obtained by writing to the Joint Powers Water Board, 11100 50Street NE, Albertville,
Minnesota 55301.
JOINT POWERS WATER BOARD
STATEMENT OF NET POSITION
DECEMBER 31, 2014
Assets and deferred outflow of resources$24,087,937
Liabilities$4,500,965
Net Position19,586,972
Total liabilities and net position$24,087,937
JOINT POWERS WATER BOARD
SUMMARY STATEMENT OF ACTIVITIES
FOR THE YEAR ENDED DECEMBER 31, 2014
Operating revenues$2,072,605
Operating expenses1,555,249
Operating income517,356
Net nonoperating revenues368,950
Change in net position886,306
Net position, January 118,700,666
Net position, December 31$19,586,972
-79-
CITY OF ALBERTVILLE, MINNESOTA
NOTES TO THE FINANCIAL STATEMENTS
DECEMBER 31, 2015
Note 6:JOINT VENTURES - CONTINUED
St. Michael - Albertville IceArena
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 City has an ongoing one-third equity financial interest of $500,228as of December 31, 2015.
Separate financial statements can be obtained by contacting Tina Lannes at Albertville City Hall.
ST. MICHAEL - ALBERTVILLE ICE ARENA
STATEMENT OFNET POSITION
DECEMBER 31, 2015
Assets$1,762,570
Liabilities$11,885
Net position1,750,685
Total liabilities and net position$1,762,570
ST. MICHAEL - ALBERTVILLE ICE ARENA
SUMMARY STATEMENT OF ACTIVITIES
DECEMBER 31, 2015
Program revenues$403,379
Expenses(361,937)
Interest revenue1,458
Change in net position42,900
Net position, January 11,707,785
Net position, December 31$1,750,685
-80-
CITY OF ALBERTVILLE, MINNESOTA
NOTES TO THE FINANCIAL STATEMENTS
DECEMBER 31, 2015
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 $1,000,000. Liabilities, if any,
include an amount for claims that have been incurred but not reported (IBNRs). The City’s management is not aware of
any incurred but not reported claims.
B.Legal debt margin
In accordance with Minnesota statutes, the City may not incur or be subject to net debt in excess of threepercent of the
market value of taxable property within the City. Net debt is payable solely from ad valorem taxes and, therefore,
excludes debt financed partially or entirely by special assessments, enterprise fund revenues or tax increments. The
City’s applicable debt does not exceedthe limit.
C.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 financial
assistance to private-sector entities for projects deemed to be in the public interest. Although these bonds bear the name
of the City, the City, the State, nor any political subdivision thereof is obligated in any manner for repayment of the
bonds. Accordingly, the bonds are not reported as liabilities in the accompanying financial statements.
AuthorizedBalance at
Description
and IssuedYear End
Multifamily Housing Revenue Refunding Bonds, Series 2007$3,540,000$3,225,000
Multifamily Housing Revenue Bonds, Series 2010A4,750,0004,525,000
Multifamily Housing Revenue Bonds, Series 2010B3,300,0003,185,624
Multifamily Housing Revenue Bonds, Series 20135,165,0004,610,000
Total Conduit Debt$16,755,000$15,545,624
D.Tax increment financing districts
The City’s tax increment districts are subject to review by the State of Minnesota Office ofthe 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.
E.Commitment cost sharing agreement
The City has entered into a cost sharing agreement for the construction and maintenance of a library with the City of
St. Michael, Minnesota. The library net cost is split based on the pro rata averageof population and market value.
-81-
CITY OF ALBERTVILLE, MINNESOTA
NOTES TO THE FINANCIAL STATEMENTS
DECEMBER 31, 2015
Note 8:JOINT VENTURE
Wright County Area Transportation (WCAT) Joint Powers Agreement
The purpose of the Agreement is to provide affordable public transportation to their communitiesstarting in calendar year
2015. The member cities include the City of Albertville, St. Michael, Hanover and Monticello. Each membercity has a
representative on the WCAT Board. The agreement contracts with Trailblazer Transit to provide public transportation to the
citizens of the member cities. The member cities are responsible for their pro rata share of expenses based on each city’s
actual rides provided. The City had no expense related to this agreement in 2015.
Note 9:CHANGE IN ACCOUNTING STANDARDS AND RESTATEMENT
During 2015, the City implemented several new accounting pronouncements issued by the Governmental Accounting
Standards Board (GASB), including Statement No. 68, Accounting and Financial Reporting for Pensions - an Amendment of
GASB Statement No. 27 and Statement No. 71, Pension Transition for Contributions Made Subsequent to the Measurement
Date - an Amendment of GASB Statement No. 68, for the year ended December 31, 2015. These standards required a
retroactive implementation which resulted in the restatement of beginning balances in the December 31, 2014 financial
statements. Changes related to these standards are reflected in the financial statements and schedules and related disclosures
are included in Note 4and Note 5.
Additionally, the governmentalfund Sewer Access and Water Access were restated to the Sewer and Water Proprietary funds
due to the nature of the funds operations.
As a result of the restatement of beginning balances, the following schedule reconciles the previously reported
December31,2014 balances to the December 31, 2015 financial statements:
Government-wide Financial Statements
December 31, 2015
Net Position
January 1, 2015Net Position
as PreviouslyPrior PeriodJanuary 1, 2015
Fund
ReportedRestatement (1)as Restated
Governmental activities$24,824,035$(330,869)$24,493,166
Business-type activities$17,758,086$(288,692)$17,469,394
(1) To record beginning net pension liability and deferred outflow of resources at December 31, 2014.
Proprietary funds
December 31, 2015
Net Position
January 1, 2015Net Position
as PreviouslyPrior PeriodJanuary 1, 2015
ReportedRestatement (1)as Restated
Business-type activities
Sewer$7,781,301$4,954,274$12,735,575
Water1,589,378911,9482,501,326
Storm Water2,227,090(40,030)2,187,060
Recycling45,433-45,433
Total business-type activities$11,643,202$5,826,192$17,469,394
(1) To record beginning net position of restating of Sewer Access and Water Access government funds with the respective
Proprietary funds as of January 1, 2015. Restatement also includes the restatement amounts noted above related
GASB 68.
-82-
REQUIRED SUPPLEMENTARY INFORMATION
CITY OF ALBERTVILLE
ALBERTVILLE, MINNESOTA
FOR THE YEAR ENDED
DECEMBER 31, 2015
-83-
CITY OF ALBERTVILLE, MINNESOTA
REQUIRED SUPPLEMENTARY INFORMATION
FOR THE YEAR ENDED DECEMBER 31, 2015
Schedule of employer’s share of PERA net pension liability - General Employees Retirement Fund
Required Supplementary Information
City's
Proportionate
State's
Share of the
Proportionate
City'sNet Pension
Share of
Liability as aPlan Fiduciary
Proportionatethe Net Pension
City'sCity'sPercentage ofNet Position
Share ofLiability
Proportion ofCoveredas a Percentage
Fiscalthe Net PensionAssociated withCovered
the Net PensionPayrollof the Total
YearLiabilitythe CityTotalPayroll
Liability((a+b)/c)Pension Liability
Ending(a)(b)(a+b)(c)
06/30/150.00015 %$777,379$-$777,379$892,387 %87.1 %78.2
Schedule of employer’s PERA contributions - General Employees Retirement Fund
Required Supplementary Information
Contributions in
Relation to the
Contributions as
StatutorilyStatutorilyContributionCity's
a Percentage of
RequiredRequiredDeficiencyCovered
Covered Payroll
YearContributionContribution(Excess)Payroll
(b/c)
Ending(a)(b)(a-b)(c)
12/31/15$66,929$66,929$-$892,387 %7.50
Schedule of employer’s share of PERA net pension liability - Public Employees Police and Fire Fund
Required Supplementary Information
City's
Proportionate
State's
Share of the
Proportionate
City'sNet Pension
Share of
Liability as aPlan Fiduciary
Proportionatethe Net Pension
City'sCity'sPercentage ofNet Position
Share ofLiability
Proportion ofCoveredas a Percentage
Fiscalthe Net PensionAssociated withCovered
the Net PensionPayrollof the Total
YearLiabilitythe CityTotalPayroll
Liability((a+b)/c)Pension Liability
Ending(a)(b)(a+b)(c)
06/30/150.00900 %$102,261$-$102,261$61,377 %166.6 %86.6
-84-
CITY OF ALBERTVILLE, MINNESOTA
REQUIRED SUPPLEMENTARY INFORMATION - CONTINUED
FOR THE YEAR ENDED DECEMBER 31, 2015
Schedule of employer’s PERA contributions - Public Employees Police and Fire Fund
Required Supplementary Information
Contributions in
Relation to the
Contributions as
StatutorilyStatutorilyContributionCity's
a Percentage of
RequiredRequiredDeficiencyCovered
Covered Payroll
YearContributionContribution(Excess)Payroll
(b/c)
Ending(a)(b)(a-b)(c)
12/31/15$9,943$9,943$-$61,377 %16.20
Schedule of employer’scontributions and non-employerscontributing entities - Fire Relief Association
20142015
Employer
Statutorily determined contribution (SDC)$-$-
Contribution deficiency SDC--
Contribution deficiency (excess)$-$-
Non-employer
2% aid$(49,288)$(61,482)
The City implemented the Provisions of Governmental Accounting Standards Board Statement No. 68 for the year ended December
31, 2015. The schedules within the Required Supplementary Information section required a 10 year presentation, but does not
require retroactive reporting. Information prior to 2014 is not available.
-85-
CITY OF ALBERTVILLE, MINNESOTA
REQUIRED SUPPLEMENTARY INFORMATION - CONTINUED
FOR THE YEAR ENDED DECEMBER 31, 2015
Schedule of Changes in Net Pension Liability and Related Ratios - Fire Relief Association
2014
Total Pension Asset(TPL)
Service cost$14,820
Interest35,420
Differenced between expected and actual experience-
Changes of assumptions-
Changes of benefit terms-
Benefit payments, including refunds or member contributions-
Net change in total pension asset50,240
Beginning of year (1)$509,879
Plan Fiduciary Net Pension (FNP)
Contributions - employer$(11,877)
Contributions - state(37,411)
Net investment income(45,479)
Benefit payments, including refunds of member contributions-
Administrative expense5,205
Other16,151
Net change in plan fiduciary net position(73,411)
Beginning of year677,641
End of year$751,052
Net Pension Asset (NPA)$190,933
Plan fiduciary net position as a percentage of the total pension asset
147%
The City implemented the Provisions of Governmental Accounting Standards Board Statement No. 68 for the year ended
December 31, 2015. The schedules within the Required Supplementary Information section required a 10 year presentation, but does
not require retroactive reporting. Information prior to 2014 is not available.
-86-
COMBININGANDINDIVIDUAL FUND
FINANCIAL STATEMENTSAND SCHEDULES
CITY OF ALBERTVILLE
ALBERTVILLE, MINNESOTA
FOR THE YEAR ENDED
DECEMBER 31, 2015
-87-
THIS PAGE IS LEFT BLANK
INTENTIONALLY
-88-
NONMAJOR GOVERNMENTAL FUNDS
CITY OF ALBERTVILLE
ALBERTVILLE, MINNESOTA
FOR THE YEAR ENDED
DECEMBER 31, 2015
-89-
THIS PAGE IS LEFT BLANK
INTENTIONALLY
-90-
NONMAJOR SPECIAL REVENUE FUNDS
Special revenue funds are used to account for revenue derived from specific taxes or other earmarked revenue sources. They are
usually required by Minnesota statute or local ordinances to finance particular functions or other activities of government.
Revolving Loan -
This fund was established to disburse available funding and collect repayments of loans.
-91-
CITY OF ALBERTVILLE, MINNESOTA
NONMAJOR GOVERNMENTAL FUNDS
COMBINING BALANCE SHEET
DECEMBER 31, 2015
Special
Revenue
203Total
RevolvingCapitalNonmajor
LoanProjectsFunds
ASSETS
Cash and temporary investments$ 71,397$ 369,864$ 441,261
Receivables
Special assessments-3,3033,303
Notes4,023-4,023
Due from other funds109,760-109,760
TOTAL ASSETS$ 185,180$ 373,167$ 558,347
LIABILITIES
Due to other funds$ -$ 272,649$ 272,649
DEFERRED INFLOWS OF RESOURCES
Unavailable revenue - special assessments-3,3033,303
Unavailable revenue - notes4,024-4,024
TOTAL DEFERRED INFLOWS OF RESOURCES4,0243,3037,327
FUND BALANCES
Restricted181,156228,749409,905
Assigned-141,115141,115
Unassigned-(272,649)(272,649)
TOTAL FUND BALANCES181,15697,215278,371
TOTAL LIABILITIES, DEFERRED INFLOWS
OF RESOURCES AND FUND BALANCES$ 185,180$ 373,167$ 558,347
-92-
CITY OF ALBERTVILLE, MINNESOTA
NONMAJOR GOVERNMENTAL FUNDS
COMBINING STATEMENT OF REVENUES, EXPENDITURES AND
CHANGES IN FUND BALANCES
FOR THE YEAR ENDED DECEMBER 31, 2015
Special
Revenue
203Total
RevolvingCapitalNonmajor
LoanProjectsFunds
REVENUES
Tax increments$ -$ 109,132$ 109,132
Special assessments-27,19227,192
Interest on investments803,0333,113
Miscellaneous2,264-2,264
TOTAL REVENUES2,344139,357141,701
EXPENDITURES
Current
Economic development-198,130198,130
Capital outlay
Culture and recreation-17,70217,702
TOTAL EXPENDITURES-215,832215,832
NET CHANGE IN FUND BALANCES2,344(76,475)(74,131)
FUND BALANCES, JANUARY 1178,812173,690352,502
FUND BALANCES, DECEMBER 31$ 181,156$ 97,215$ 278,371
-93-
THIS PAGE IS LEFT BLANK
INTENTIONALLY
-94-
NONMAJOR CAPITAL PROJECTSFUNDS
Capital projects funds are used to account for the acquisition and construction of major capital facilities other than those financed by
enterprise funds.
Park -
This fund accounts for the accumulationof resources and payments made for the construction of park improvements. Park
dedication fees, contributions and donations as well as interestare the main financing sources.
Closed Capital Projects -
This fund accounts for the costs associated with replacement of the City’s utility and road system. It also
covers minor costs for project funds closed and completed.
TIF #7 Senior Housing -
Thisfund was created to facilitate the construction of the Senior Housing project within the City. This fund
accounts for the financial activity related to that project.
TIF #14 Fraser Steel -
This fund was created to facilitate the Fraser Steel project within the City. This fund accounts for the financial
activity related to that project.
TIF #15 Guardian Angels -
This fund was created to facilitate the Fraser Steel project within the City. This fund accounts for the
financial activity related to that project.
TIF #17 Old Castle -
This fund was created to facilitate the Old Castle project within the City. This fund accounts for the financial
activity related to that project.
-95-
CITY OF ALBERTVILLE, MINNESOTA
NONMAJOR CAPITAL PROJECTS FUNDS
COMBINING BALANCE SHEET
DECEMBER 31, 2015
201400407
ClosedTIF #7
ParkCapitalSenior
FundProjectsHousing
ASSETS
Cash and temporary investments$ 171,198$ 141,115$ 45,962
Receivables
Special assessments-3,303-
TOTAL ASSETS$ 171,198$ 144,418$ 45,962
LIABILITIES
Due to other funds$ -$ -$ -
DEFERRED INFLOWS OF RESOURCES
Unavailable revenue - special assessments-3,303-
FUND BALANCES
Restricted171,198-45,962
Assigned-141,115-
Unassigned---
TOTAL FUND BALANCES171,198141,11545,962
TOTAL LIABILITIES, DEFERRED INFLOWS
OF RESOURCES AND FUND BALANCES$ 171,198$ 144,418$ 45,962
-96-
414415417
TIF #14TIF #15TIF #17
FraserGuardianOld
SteelAngelsCastleTotal
$ -$ 11,589$ -$ 369,864
---3,303
$ -$ 11,589$ -$ 373,167
$ 109,760$ -$ 162,889$ 272,649
---3,303
-11,589-228,749
---141,115
(109,760)-(162,889)(272,649)
(109,760)11,589(162,889)97,215
$ -$ 11,589$ -$ 373,167
-97-
CITY OF ALBERTVILLE, MINNESOTA
NONMAJOR CAPITAL PROJECTS FUNDS
COMBINING SCHEDULE OF REVENUES, EXPENDITURES AND
CHANGES IN FUND BALANCES
FOR THE YEAR ENDED DECEMBER 31, 2015
201400407
ClosedTIF #7
ParkCapitalSenior
FundProjectsHousing
REVENUES
Tax increments$ -$ -$ 27,581
Special assessments27,192--
Interest on investments1,3251,117305
TOTAL REVENUES28,5171,11727,886
EXPENDITURES
Current
Economic development--25,233
Capital outlay
Culture and recreation17,702--
TOTAL EXPENDITURES17,702-25,233
NET CHANGE IN FUND BALANCES10,8151,1172,653
FUND BALANCES, JANUARY 1160,383139,99843,309
FUND BALANCES, DECEMBER 31$ 171,198$ 141,115$ 45,962
-98-
414415417
TIF #14TIF #14TIF #17
FraserFraserOld
SteelSteelCastleTotal
$ 60,200$ 21,351$ -$ 109,132
---27,192
24046-3,033
60,44021,397-139,357
2009,808162,889198,130
---17,702
2009,808162,889215,832
60,24011,589(162,889)(76,475)
(170,000)--173,690
$ (109,760)$ 11,589$ (162,889)$ 97,215
-99-
THIS PAGE IS LEFT BLANK
INTENTIONALLY
-100-
CITY OF ALBERTVILLE, MINNESOTA
GENERAL FUND
SCHEDULE OF REVENUES, EXPENDITURES AND
CHANGES IN FUND BALANCES - BUDGET TO ACTUAL - CONTINUED ON THE FOLLOWING PAGES
FOR THE YEAR ENDED DECEMBER 31, 2015
(With comparative actual amounts for the year ended December 31, 2014)
2015
2014
Budgeted Amounts
ActualVariance withActual
OriginalFinalAmountsFinal BudgetAmounts
REVENUES
Taxes
General property taxes$ 2,547,180$ 1,683,019$ 1,678,488$ (4,531)$ 2,378,412
Licenses and permits
Business51,30051,30053,3472,04759,768
Non-business77,00077,000144,53167,531107,816
Total128,300128,300197,87869,578167,584
Intergovernmental
Federal --3,3983,398-
State
Local government aid87,00087,00087,0969679,651
Property tax credits--332332209
Other80,50080,500106,39325,89379,807
Total167,500167,500197,21929,719159,667
Charges for services
General government388,365233,464298,03464,570409,230
Public safety225,710225,710225,710-160,533
Culture and recreation10,00010,000124,615114,615125,036
Total624,075469,174648,359179,185694,799
Fines and forfeitures--1,0001,000-
Special assessments--22,91022,91023,385
Interest on investments25,00025,00019,329(5,671)53,188
Miscellaneous
Other10,50010,50036,72226,22230,222
Contributions and donations--7,5007,50011,400
Refunds and reimbursements--33,19833,19833,399
Total10,50010,50077,42066,92075,021
TOTAL REVENUES3,502,5552,483,4932,842,603359,1103,552,056
-101-
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, 2015
(With comparative actual amounts for the year ended December 31, 2014)
2015
2014
Budgeted Amounts
ActualVariance withActual
OriginalFinalAmountsFinal BudgetAmounts
EXPENDITURES
Current
General government
Legislative
Personal services$ 21,171$ 20,669$ 20,669$ -$ 21,084
Supplies500500765265613
Other services and charges21,65017,25022,6985,44821,954
Total43,32138,41944,1325,71343,651
Administration
Personal services85,27673,04564,773(8,272)77,101
Supplies5,1005,1002,586(2,514)2,183
Other services and charges10,0509,5009,053(447)7,433
Total 100,42687,64576,412(11,233)86,717
City clerk
Personal services76,39253,19362,8019,60870,432
Supplies8,0008,0009,0031,0037,129
Other services and charges42,78836,18825,147(11,041)38,522
Total127,18097,38196,951(430)116,083
Elections and voter registration
Personal services----685
Supplies----228
Other services and charges15,50015,500-(15,500)12,813
Total15,50015,500-(15,500)13,726
Treasurer
Personal services169,30278,37370,959(7,414)157,060
Supplies8,2008,2003,638(4,562)9,070
Other services and charges21,25020,53015,426(5,104)7,563
Total198,752107,10390,023(17,080)173,693
Assessing
Other services and charges29,00029,00028,826(174)28,491
Legal
Other services and charges40,00040,00026,836(13,164)28,978
-102-
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, 2015
(With comparative actual amounts for the year ended December 31, 2014)
2015
2014
Budgeted Amounts
ActualVariance withActual
OriginalFinalAmountsFinal BudgetAmounts
EXPENDITURES - CONTINUED
Current - continued
General government - continued
Engineering
Other services and charges$ 20,000$ 20,000$ 15,340$ (4,660)$ 13,181
Miscellaneous
Personal services4,0075,5603,332(2,228)1,817
Supplies1,0001,000842(158)1,989
Other services and charges204,780179,415195,34815,933240,038
Total209,787185,975199,52213,547243,844
Total general government783,966621,023578,042(42,981)748,364
Public safety
Police protection
Other services and charges613,020613,020612,105(915)547,500
Fire protection
Personal services265,243313,331271,790(41,541)169,652
Supplies14,30014,30015,26496411,801
Other services and charges149,889101,802102,8941,092129,767
Total429,432429,433389,948(39,485)311,220
Protective inspection
Personal services39,86648,75044,114(4,636)31,980
Supplies1,3501,350425(925)258
Other services and charges116,917104,368101,218(3,150)109,707
Total158,133154,468145,757(8,711)141,945
Animal control
Other services and charges4,0804,0806,8462,7665,859
Total public safety1,204,6651,201,0011,154,656(46,345)1,006,524
-103-
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, 2015
(With comparative actual amounts for the year ended December 31, 2014)
2015
2014
Budgeted Amounts
ActualVariance withActual
OriginalFinalAmountsFinal BudgetAmounts
EXPENDITURES - CONTINUED
Current - continued
Public works
Streets
Personal services$ 198,590$ 183,456$ 180,089$ (3,367)$ 158,886
Supplies95,15035,15032,585(2,565)67,332
Other services and charges63,05049,45848,548(910)61,214
Total356,790268,064261,222(6,842)287,432
Street lighting
Other services and charges85,00081,00078,334(2,666)80,622
Total public works441,790349,064339,556(9,508)368,054
Culture and recreation
Parks
Personal services160,359180,434160,948(19,486)165,759
Supplies17,60517,60515,511(2,094)20,108
Other services and charges101,009109,36697,787(11,579)101,260
Total278,973307,405274,246(33,159)287,127
Arena
Personal services--112,779112,779114,466
Total culture and recreation278,973307,405387,02579,620401,593
Economic Development
Other services and charges5,0005,0005,49649672,022
Total current expenditures2,714,3942,483,4932,464,775(18,718)2,596,557
EXPENDITURES - CONTINUED
Capital outlay
General government32,500---39,267
Public safety203,500---21,735
Public works464,100---87,897
Culture and recreation88,061---27,435
Total capital outlay788,161---176,334
TOTAL EXPENDITURES3,502,5552,483,4932,464,775(18,718)2,772,891
-104-
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, 2015
(With comparative actual amounts for the year ended December 31, 2014)
2015
2014
Budgeted Amounts
ActualVariance withActual
OriginalFinalAmountsFinal BudgetAmounts
EXCESS OF REVENUES
OVER EXPENDITURES$ -$ -$ 377,828$ 377,828$ 779,165
OTHER FINANCING SOURCES (USES)
Transfers in----50,000
Transfers out--(300,000)(300,000)(481,393)
TOTAL OTHER FINANCING
SOURCES (USES)--(300,000)(300,000)(431,393)
NET CHANGE IN FUND BALANCES--77,82877,828347,772
FUND BALANCES, JANUARY 11,849,3581,849,3581,849,358-1,501,586
FUND BALANCES, DECEMBER 31$ 1,849,358$ 1,849,358$ 1,927,186$ 77,828$ 1,849,358
-105-
CITY OF ALBERTVILLE, MINNESOTA
DEBT SERVICE FUND
COMBINING BALANCE SHEET
DECEMBER 31, 2015
354357358359
2008B2003A2011C2012B
G.O. CIPG.O.G.O. CIPG.O. CIP
RefundingImprovementRefundingRefunding
ASSETS
Cash and temporary investments$ 34,424$ -$ 650,037$ 11,522
Receivables
Taxes1,5274,3132,3485,206
Special assessments-241,521--
Interest----
Notes----
Due from other funds----
Due from other governments-200,000--
Land held for resale-800,434--
TOTAL ASSETS$ 35,951$ 1,246,268$ 652,385$ 16,728
LIABILITIES
Advances from other funds$ -$ 555,441$ -$ -
DEFERRED INFLOWS OF RESOURCES
Unavailable revenue - property taxes1,3503,7102,1224,632
Unavailable revenue - special assessments-241,521--
Unavailable revenue - notes-200,000--
TOTAL DEFERRED INFLOWS OF RESOURCES1,350445,2312,1224,632
FUND BALANCES
Restricted
Debt service34,601245,596650,26312,096
TOTAL LIABILITIES, DEFERRED INFLOWS
OF RESOURCES AND FUND BALANCES$ 35,951$ 1,246,268$ 652,385$ 16,728
-106-
360361362468
CSAH 19LachmanIndustrial
2012A2012A2012A
G.O. Improv.G.O. Improv.G.O. Improv.
RefundingRefundingRefundingInterstate 94Total
$ 856,012$ 145,241$ 125,202$ 194,457$ 2,016,895
8734411,5321,20617,446
245,287150,468555,822742,9671,936,065
---6,6326,632
---1,243,5221,243,522
--162,889-162,889
----200,000
--420,519-1,220,953
$ 1,102,172$ 296,150$ 1,265,964$ 2,188,784$ 6,804,402
$ -$ -$ -$ -$ 555,441
8163801,3191,07515,404
245,287150,468555,822742,9711,936,069
---1,243,5221,443,522
246,103150,848557,1411,987,5683,394,995
856,069145,302708,823201,2162,853,966
$ 1,102,172$ 296,150$ 1,265,964$ 2,188,784$ 6,804,402
-107-
CITY OF ALBERTVILLE, MINNESOTA
DEBT SERVICE FUND
COMBINING SCHEDULE OF REVENUES, EXPENDITURES AND
CHANGES IN FUND BALANCES
FOR THE YEAR ENDED DECEMBER 31, 2015
354357358359
2008B2003A2011C2012B
G.O. CIPG.O.G.O. CIPG.O. CIP
RefundingImprovementRefundingRefunding
REVENUES
Property taxes$ 80,445$ 274,534$ 103,057$ 261,306
Intergovernmental-50,000--
Special assessments----
Interest earnings-2434,815547
Miscellaneous----
TOTAL REVENUES80,445324,777107,872261,853
EXPENDITURES
Current
Public works----
Debt Service
Principal55,000100,000120,000220,000
Interest and other7,40210,75037,48543,325
TOTAL EXPENDITURES62,402110,750157,485263,325
EXCESS (DEFICIENCY) OF REVENUES
OVER (UNDER) EXPENDITURES18,043214,027(49,613)(1,472)
OTHER FINANCING SOURCE
Bond issuance----
NET CHANGE IN FUND BALANCE18,043214,027(49,613)(1,472)
FUND BALANCES, JANUARY 116,55831,569699,87613,568
FUND BALANCES, DECEMBER 31$ 34,601$ 245,596$ 650,263$ 12,096
-108-
360361362
CSAH 19LachmanIndustrial468
2012A2012A2012A
G.O. Improv.G.O. Improv.G.O. Improv.
RefundingRefundingRefundingInterstate 94Total
$ 26,098$ 31,302$ 108,528$ 59,693$ 944,963
----50,000
38,72712,352257,96871,018380,065
14,3694,6135,4191,56031,566
---89,61189,611
79,19448,267371,915221,8821,496,205
--294,986-294,986
1,305,000425,000805,000161,8513,191,851
47,12915,26329,22144,350234,925
1,352,129440,2631,129,207206,2013,721,762
(1,272,935)(391,996)(757,292)15,681(2,225,557)
---235,000235,000
(1,272,935)(391,996)(757,292)250,681(1,990,557)
2,129,004537,2981,466,115(49,465)4,844,523
$ 856,069$ 145,302$ 708,823$ 201,216$ 2,853,966
-109-
CITY OF ALBERTVILLE, MINNESOTA
AGENCY FUNDS
COMBINING STATEMENT OF CHANGES IN ASSETS AND LIABILITIES
FOR THE YEAR ENDED DECEMBER 31, 2015
BalanceBalance
January 1AdditionsDeductionsDecember 31
Albertville Friendly City Days
ASSETS
Cash and temporary investments$ 30,527$ -$ (5,071)$ 25,456
Accounts payable$ 30,527$ -$ (5,071)$ 25,456
Albertville Lions
ASSETS
Cash and temporary investments$ 53,117$ 30,233$ (15,577)$ 67,773
Accounts payable$ 53,117$ 30,233$ (15,577)$ 67,773
STMA Arena
Cash and temporary investments$ 105,028$ 465,205$ (325,093)$ 245,140
Accounts receivable42,04047,144(42,040)47,144
Due from other governments50,501-(50,501)-
Inventory4,7441,703-6,447
TOTAL ASSETS$ 202,313$ 514,052$ (417,634)$ 298,731
LIABILITIES
Accounts payable$ 200,274$ 524,162$ (427,627)$ 296,809
Due to other government2,039-(117)1,922
TOTAL LIABILITIES$ 202,313$ 524,162$ (427,744)$ 298,731
Landscaping, Development & Planning Escrows
ASSETS
Cash and temporary investments$ 590,100$ 39,668$ (31,478)$ 598,290
LIABILITIES
Accounts payable$ 590,100$ 39,668$ (31,478)$ 598,290
Total Agency Funds
ASSETS
Cash and temporary investments$ 778,772$ 535,106$ (377,219)$ 936,659
Accounts receivable42,04047,144(42,040)47,144
Due from other governments50,501-(50,501)-
Inventory4,7441,703-6,447
TOTAL ASSETS$ 876,057$ 583,953$ (469,760)$ 990,250
LIABILITIES
Accounts payable$ 874,018$ 594,063$ (479,753)$ 988,328
Accrued salaries payable2,039-(117)1,922
TOTAL LIABILITIES$ 876,057$ 594,063$ (479,870)$ 990,250
-110-
CITY OF ALBERTVILLE, MINNESOTA
SUMMARY FINANCIAL REPORT
REVENUES AND EXPENDITURES FOR GENERAL OPERATIONS
GOVERNMENTAL FUNDS
YEARS ENDED DECEMBER 31, 2015 AND 2014
Percent
TotalIncrease
(Decrease)
20152014
REVENUES
Taxes$ 3,596,744$ 3,302,3508.91%
Special assessments434,682384,72712.98
Licenses and permits197,878167,58418.08
Intergovernmental1,958,201209,667833.96
Charges for services648,359857,837(24.42)
Fines and forfeitures1,000-100.00
Interest on investments86,644282,344(69.31)
Miscellaneous358,035214,30267.07
TOTAL REVENUES$ 7,281,543$ 5,418,81134.38%
Per Capita$ 1,003$ 75133.43%
EXPENDITURES
Current
General government$ 606,158$ 748,364(19.00)%
Public safety1,154,6561,006,52414.72
Public works634,542413,53653.44
Culture and recreation387,025401,593(3.63)
Economic development203,62696,866110.21
Capital outlay
General government22,84799,493(77.04)
Public safety78,48521,735261.10
Public works637,38996,248562.24
Culture and recreation77,35369,78210.85
Economic development25,54141,064(37.80)
Debt service
Principal3,191,851918,000247.70
Interest and other234,925288,757(18.64)
Bond issuance costs-7,458100.00
TOTAL EXPENDITURES$ 7,254,398$ 4,209,42072.34%
Per Capita$ 999$ 58471.13%
Total Long-term Indebtedness$ 9,845,317$12,807,462(23.13)%
Per Capita1,3561,776(23.67)
General Fund Balance - December 31$ 1,927,186$ 1,849,3584.21%
Per Capita2652563.48
The purpose of this report is to provide a summary of financial information concerning the City of Albertville to interested
citizens. The complete financial statements may be examined at City Hall, 5959 Main Avenue, Albertville, MN 55301.
Questions about this report should be directed to Tina Lannes, Finance Director at (763) 497-3384.
-111-
THIS PAGE IS LEFT BLANK
INTENTIONALLY
-112-
STATISTICAL SECTION(UNAUDITED)
CITY OF ALBERTVILLE
ALBERTVILLE, MINNESOTA
FOR THE YEAR ENDED
DECEMBER 31, 2015
-113-
THIS PAGE IS LEFT BLANK
INTENTIONALLY
-114-
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 financial statements, note disclosures, and required supplementary information saysabout
the government’s overall financial health.
Financial Trends
These schedules contain trend information to help the reader understand how the government’s financial performance andwell-
being have changed over time.
Revenue Capacity
These schedules contain information to help the reader assessthe government’s most significant local revenue source, the
property tax.
Debt Capacity
These schedules present information to help the reader assessthe affordability of the government’s current levels of out-standing
debt and the government’s ability to issueadditional debt in the future.
Demographic and Economic Information
These schedules offer demographic and economic indicatorsto help the reader understand the environment within which the
government’s financial activities take place.
Operating Information
These schedules contain service and infrastructure data to helpthe reader understand how the information in the government’s
financial report relates to the services the government providesand the activities it performs.
Sources: Unless otherwise noted, the information in these schedules is derived from the annual financial reports for the relevant year.
-115-
CITY OF ALBERTVILLE, MINNESOTA
STATISTICAL SECTION (UNAUDITED)
NET POSITION BY COMPONENT
LAST TEN FISCAL YEARS
(accrual basis of accounting)
Fiscal Year
200620072008
Governmental activities
Net investment in capital assets$19,214,778$20,784,940$21,047,473
Restricted5,642,2847,295,2866,209,272
Unrestricted982,0701,717,1392,403,519
Total governmental activities net position$25,839,132$29,797,365$29,660,264
Business-type activities
Net investment in capital assets$ 6,572,396$ 6,894,960$ 7,262,007
Restricted5,605,0296,289,7606,265,226
Unrestricted3,186,5123,870,6443,735,185
Total business-type activities net position$15,363,937$17,055,364$17,262,418
Total primary government
Net investment in capital assets$25,787,174$27,679,900$28,309,480
Restricted11,247,31313,585,04612,474,498
Unrestricted4,168,5825,587,7836,138,704
Total primary government$41,203,069$46,852,729$46,922,682
Note: The City implemented GASB Statement N. 68 and GASB Statement No. 71 in 2015. Years prior to 2015 have not been
restated.
-116-
Table 1
Fiscal Year
2009201020112012201320142015
$19,863,555$18,305,960$17,580,883$16,766,234$16,761,614$15,982,545$16,000,840
7,065,0557,516,6707,729,4857,720,1524,083,9264,359,3586,603,871
2,752,1873,098,3443,372,6294,082,0023,545,4244,482,1324,287,635
$29,680,797$28,920,974$28,682,997$28,568,388$24,390,964$24,824,035$26,892,346
$ 7,458,269$ 7,486,320$ 6,918,585$ 6,951,242$ 7,345,829$ 8,198,571$ 8,423,132
-------
10,649,52210,690,63511,152,12611,091,87710,722,7789,559,5159,038,370
$18,107,791$18,176,955$18,070,711$18,043,119$18,068,607$17,758,086$17,461,502
$27,321,824$25,792,280$24,499,468$23,717,476$24,107,443$24,181,116$24,423,972
7,065,0557,516,6707,729,4857,720,1524,083,9264,359,3586,603,871
13,401,70913,788,97914,524,75515,173,87914,268,20214,041,64713,326,005
$47,788,588$47,097,929$46,753,708$46,611,507$42,459,571$42,582,121$44,353,848
-117-
CITY OF ALBERTVILLE, MINNESOTA
STATISTICAL SECTION (UNAUDITED)
CHANGES IN NET POSITION - CONTINUED ON THE FOLLOWING PAGES
LAST TEN FISCAL YEARS
(accrual basis of accounting)
Fiscal Year
200620072008
Expenses
Governmental activities
General government$ 939,143$ 905,429$ 1,119,820
Public safety1,200,8211,202,5291,199,463
Public works3,150,4921,344,1241,675,926
Culture and recreation624,550268,040331,749
Economic development59,069235,425153,026
Interest on long-term debt415,400424,709515,558
Total governmental activities expenses6,389,4754,380,2564,995,542
Business-type activities
Sewer utility834,895858,726823,088
Water utility917,0831,297,3071,226,374
Storm Water utility114,82575,268142,520
Recycling---
Total business-type activities expenses1,866,8032,231,3012,191,982
Total expenses$ 8,256,278$ 6,611,557$ 7,187,524
Program Revenues
Governmental activities
Charges for services
General government$ 1,229,408$ 775,544$ 733,709
Public safety73,06585,887129,521
Public works-5,7003,050
Culture and recreation26,859--
Operating grants and contributions104,713317,112856,725
Capital grants and contributions688,1362,967,450342,520
Total governmental activities program revenues2,122,1814,151,6932,065,525
Business-type activities
Charges for services
Sewer utility1,341,289692,890651,821
Water utility1,183,4081,118,4011,008,729
Storm Water utility142,276170,004212,891
Recycling---
Operating grants and contributions-4,664146,172
Capital grants and contributions102,5321,906,378489,075
Total business-type activities program revenues2,769,5053,892,3372,508,688
Total program revenues$ 4,891,686$ 8,044,030$ 4,574,213
Note: The City implemented GASB Statement N. 68 and GASB Statement No. 71 in 2015. Years prior to 2015 have not been restated.
-118-
Table 2
Fiscal Year
2009201020112012201320142015
$ 978,528$ 1,001,940$ 911,754$ 1,108,505$ 948,742$ 923,711$ 715,779
1,096,9941,082,8341,077,4291,129,8631,075,7601,103,4311,222,679
1,552,7721,505,2691,449,7281,434,2022,090,1081,461,3191,636,968
321,742368,001382,071478,016505,161558,881569,429
118,8831,198,298829,7827,878,251548,783137,930229,167
426,200412,145378,185354,898331,119295,924255,379
4,495,1195,568,4875,028,94912,383,7355,499,6734,481,1964,629,401
808,041772,371801,198824,5261,024,449946,586961,507
1,119,435919,956919,9821,170,3711,095,9061,108,449399,813
87,73268,209102,233151,009172,946170,061182,779
--65,08378,83079,94881,02481,689
2,015,2081,760,5361,888,4962,224,7362,373,2492,306,1201,625,788
$ 6,510,327$ 7,329,023$ 6,917,445$14,608,471$ 7,872,922$ 6,787,316$ 6,255,189
$ 375,727$ 439,648$ 462,145$ 498,706$ 624,869$ 574,438$ 489,742
107,188140,818113,013117,011157,752161,373227,250
2,2901,8505,2497003,2501,2002,500
--4,922166,826178,550234,694154,851
296,286236,325228,5408,309,198165,255249,041230,499
183,606580,337174,001102,796127,438340,6322,000,970
965,0971,398,978987,8709,195,2371,257,1141,561,3783,105,812
590,290596,576690,745716,448730,933728,308752,094
910,565858,768837,9011,066,130975,753917,507256,040
356,376216,167210,005220,943226,677228,659251,960
--67,70478,14480,11580,65981,223
24,8479,8302,82810,92619,35218,65764,001
679,2505,388115,489116,394368,310154,336122,884
2,561,3281,686,7291,924,6722,208,9852,401,1402,128,1261,528,202
$ 3,526,425$ 3,085,707$ 2,912,542$11,404,222$ 3,658,254$ 3,689,504$ 4,634,014
-119-
CITY OF ALBERTVILLE, MINNESOTA
STATISTICAL SECTION (UNAUDITED)
CHANGES IN NET POSITION - CONTINUED
LAST TEN FISCAL YEARS
(accrual basis of accounting)
Fiscal Year
200620072,008
Net Revenues (Expenses)
Governmental activities$ (4,267,294)$ (228,563)$ (2,930,017)
Business-type activities902,7021,661,036316,706
Total primary government revenues (expenses)$ (3,364,592)$ 1,432,473$ (2,613,311)
General Revenues and Other Changes in net position
General Revenues
Governmental activities
Taxes
Property taxes, levied for general purpose$ 1,661,756$ 1,921,855$ 2,082,890
Property taxes, levied for debt service335,957350,677520,842
Tax increments98,546109,89594,855
State aids13,05694,81448,436
Grants and contributions not restricted to specific programs13,71727,00315,055
Unrestricted investment earnings258,786194,04484,088
Loss on sale of capital assets---
Gain on sale of capital assets-129,854-
Miscellaneous---
Capital contributions616,280--
Transfers - capital assets---
Transfers336,081480,64937,100
Special item - decrease in land held for resale---
Total governmental activities general revenues3,334,1793,308,7912,883,266
Business-type activities
Unrestricted investment earnings265,578314,190349,779
Transfers - capital assets---
Transfers(336,081)(480,649)(37,100)
Total business-type activities general revenues(70,503)(166,459)312,679
Total primary government$ 3,263,676$ 3,142,332$ 3,195,945
Change in net position
Governmental activities$ (933,115)$ 3,080,228$ (46,751)
Business-type activities832,1991,494,577629,385
Total primary government$ (100,916)$ 4,574,805$ 582,634
-120-
Table 2
Fiscal Year
2,009201020112012201320142015
$ (3,530,022)$ (4,169,509)$ (4,041,079)$ (3,188,498)$ (4,242,559)$ (2,919,818)$ (1,523,589)
546,120(73,807)36,176(15,751)27,891(177,994)(97,586)
$ (2,983,902)$ (4,243,316)$ (4,004,903)$ (3,204,249)$ (4,214,668)$ (3,097,812)$ (1,621,175)
$ 2,145,373$ 2,255,664$ 2,252,713$ 2,448,719$ 2,491,895$ 2,478,224$ 2,606,772
566,477592,295702,317715,157657,878805,791885,270
83,54834,55526,71626,71626,71528,648109,132
-------
18,244451,50720,28910,28013,68190,26998,932
33,24852,615144,58199,042(48,206)182,32286,644
-13,506-----
--3,381---3,450
------132,569
-------
(74,188)------
66,1259,544299,157-(50,000)330,236-
----(3,026,828)--
2,838,8273,409,6863,449,1543,299,91465,1353,915,4903,922,769
291,190152,515156,73799,440(52,403)197,70989,694
74,188------
(66,125)(9,544)(299,157)-50,000(330,236)-
299,253142,971(142,420)99,440(2,403)(132,527)89,694
$ 3,138,080$ 3,552,657$ 3,306,734$ 3,399,354$ 62,732$ 3,782,963$ 4,012,463
$ (691,195)$ (759,823)$ (591,925)$ 111,416$ (4,177,424)$ 995,672$ 2,399,180
845,37369,164(106,244)83,68925,488(310,521)(7,892)
$ 154,178$ (690,659)$ (698,169)$ 195,105$ (4,151,936)$ 685,151$ 2,391,288
-121-
CITY OF ALBERTVILLE, MINNESOTA
STATISTICAL SECTION (UNAUDITED)
FUND BALANCES OF GOVERNMENTAL FUNDS
LAST TEN FISCAL YEARS
Fiscal Year
200620072008
General fund
Reserved$ -$ -$ -
Unreserved1,549,004792,457859,636
Nonspendable---
Unassigned---
Total general fund$ 1,549,004$ 792,457$ 859,636
All other governmental funds
Reserved$ 4,121,164$ 2,841,445$ 2,826,007
Unreserved, reported in
Debt service funds(457,216)756,064308,193
Special revenue funds-167,838172,837
Capital project funds5,151,6116,821,8816,803,831
Nonspendable---
Restricted---
Assigned---
Unassigned---
Total all other governmental funds$ 8,815,559$10,587,228$10,110,868
Note: The requirements of GASB 54 were implemented in 2011.
-122-
Table 3
Fiscal Year
2009201020112012201320142015
$ 69,759$ 69,759$ -$ -$ -$ -$ -
1,117,0021,070,100-----
--69,75969,75951,00051,00051,000
--1,120,4551,248,8151,450,5861,798,3581,876,186
$ 1,186,761$ 1,139,859$ 1,190,214$ 1,318,574$ 1,501,586$ 1,849,358$ 1,927,186
$ 4,517,308$ 4,504,995$ -$ -$ -$ -$ -
94,666912,359-----
176,692178,928-----
6,048,9356,632,652-----
----1013,1842,695
--5,821,5877,827,8604,353,6035,276,4923,263,871
--8,811,6639,422,4849,456,5579,920,3955,969,374
--(1,738,994)(746,029)(767,766)(971,681)(842,241)
$10,837,601$12,228,934$12,894,256$16,504,315$13,042,404$14,238,390$ 8,393,699
-123-
CITY OF ALBERTVILLE, MINNESOTA
STATISTICAL SECTION (UNAUDITED)
CHANGES IN FUND BALANCES OF GOVERNMENTAL FUNDS
LAST TEN FISCAL YEARS
Fiscal Year
200620072008
Revenues
Taxes$ 2,055,430$ 2,322,488$ 2,690,024
Licenses and permits487,132283,287386,564
Intergovernmental167,769717,556129,294
Charges for services1,416,2032,150,160878,486
Fines and forfeitures3,7023,450-
Special assessments1,191,863691,833847,075
Interest on investments367,427399,565327,292
Miscellaneous733,236240,929346,078
Total revenues6,422,7626,809,2685,604,813
Expenditures
General government925,032849,6431,023,497
Public safety1,080,0461,122,9881,110,041
Public works582,576563,455691,311
Culture and recreation217,908246,507274,167
Economic development59,06996,550124,140
Capital Outlay5,394,5554,741,146795,402
Debt service
Principal725,000765,0001,155,000
Interest392,992401,882490,660
Bond issuance costs---
Total expenditures9,377,1788,787,1715,664,218
Excess (deficiency) of revenues
over (under) expenditures(2,954,416)(1,977,903)(59,405)
Other financing sources (uses)
Transfers in4,142,8692,134,050643,157
Bonds refunded--(560,000)
Bond issuance-3,235,000560,000
Payment to refunded bond escrow agent---
Premiums on bonds sold---
Discount on long-term debt issued-(24,690)-
Sale of capital assets-129,854-
Transfers out(4,014,106)(2,481,189)(902,583)
Total other financing
sources (uses)128,7632,993,025(259,426)
Special item
Decrease in land held for resale---
Net change in fund balances$ (2,825,653)$ 1,015,122$ (318,831)
Debt service as a percentage of
Noncapital expenditures20.2%25.9%31.4%
-124-
Table 4
Fiscal Year
2009201020112012201320142015
$ 2,731,540$ 2,946,660$ 3,058,608$ 3,182,549$ 3,212,853$ 3,302,350$ 3,596,744
188,012217,530125,273129,088213,277167,584197,878
79,7081,015,378258,2625,881,766158,861209,6671,958,201
400,861417,828558,899707,1611,097,560857,837648,359
500--200--1,000
644,266575,468342,603274,016306,453384,727434,682
226,930141,487207,990143,346(80,585)282,34486,644
230,961152,256132,58189,326203,566214,302358,035
4,502,7785,466,6074,684,21610,407,4525,111,9855,418,8117,281,543
957,447860,648774,7831,002,640808,790748,364606,158
990,350993,883992,0721,031,034972,8931,006,5241,154,656
554,593387,467392,957393,248403,811413,536634,542
210,255240,559215,056346,895353,316401,593387,025
116,25370,350149,96954,048261,31896,866203,626
1,169,374720,1681,069,9537,892,0951,040,402328,322841,615
760,000405,000420,000590,000805,700918,0003,191,851
413,181394,958426,125228,682315,036288,757234,925
---67,308-7,458-
5,171,4534,073,0334,440,91511,605,9504,961,2664,209,4207,254,398
(668,675)1,393,574243,301(1,198,498)150,7191,209,39127,145
264,662885,7061,575,525626,728697,254868,993344,000
---5,055,000-528,062-
--2,660,0003,278,551--235,000
--(2,618,259)(3,250,353)---
--23,65258,112---
-------
-31,3273,381---3,450
(356,492)(966,176)(1,171,923)(831,121)(1,100,044)(1,062,688)(344,000)
(91,830)(49,143)472,3764,936,917(402,790)334,367238,450
----(3,026,828)--
$ (760,505)$ 1,344,431$ 715,677$ 3,738,419$ (3,278,899)$ 1,543,758$ 265,595
26.8%21.7%20.3%7.1%26.0%29.6%52.5%
-125-
CITY OF ALBERTVILLE, MINNESOTA
STATISTICAL SECTION (UNAUDITED)
TAX CAPACITY, MARKET VALUE AND ESTIMATED ACTUAL VALUE OF TAXABLE PROPERTY
(Shown by year of tax collectability)
2006200720082009
Taxable market value
Personal property$ 4,307,400$ 4,790,900$ 4,496,300$ 4,208,800
Real estate550,847,200627,206,200676,886,400691,643,400
Total taxable market value$ 555,154,600$ 631,997,100$ 681,382,700$ 695,852,200
Estimated actual value of taxable property$ 596,039,800$ 673,691,200$ 722,043,500$ 729,346,000
Taxable market value as a percentage of
estimated actual value93.14%93.81%94.37%95.41%
Tax capacity
Personal property$ 86,069$ 93,976$ 88,151$ 82,394
Real estate6,680,7667,600,7148,257,9278,526,172
Subtotal6,766,8357,694,6908,346,0788,608,566
Less: tax increment(94,563)(106,683)(90,688)(67,760)
Net tax capacity$ 6,672,272$ 7,588,007$ 8,255,390$ 8,540,806
Tax levies
General$ 1,735,899$ 2,009,558$ 2,144,171$ 2,208,496
Debt service359,651360,959545,560604,767
Total$ 2,095,550$ 2,370,517$ 2,689,731$ 2,813,263
Tax capacity rate
General26.017%26.483%25.973%25.858%
Debt service5.3904.7576.6097.081
Total31.407%31.240%32.582%32.939%
Source: Wright County Auditor/Treasurer Department
-126-
Table 5
20142015
2010201120122013
$ 4,179,500$ 4,712,900$ 4,870,500$ 5,275,300$ 5,239,900$ 5,279,500
635,692,600584,020,100523,802,300468,964,700500,588,200590,536,600
$ 639,872,100$ 588,733,000$ 528,672,800$ 474,240,000$ 505,828,100$ 595,816,100
$ 658,736,600$ 600,645,500$ 528,672,800$ 474,240,000$ 505,828,100$ 634,198,005
97.14%98.02%100.00%100.00%100.0093.95%
$ 81,783$ 92,398$ 95,065$ 103,190$ 102,426$ 103,325
7,955,5997,312,7696,663,3676,088,7096,379,9766,780,598
8,037,3827,405,1676,758,4326,191,8996,482,4026,883,923
(28,165)(21,696)(21,696)(21,696)(23,265)(79,615)
$ 8,009,217$ 7,383,471$ 6,736,736$ 6,170,203$ 6,459,137$ 6,804,308
$ 2,338,941$ 2,373,087$ 2,429,769$ 2,423,781$ 2,397,983$ 2,547,180
600,814722,994712,503781,325902,141949,967
$ 2,939,755$ 3,096,081$ 3,142,272$ 3,205,106$ 3,300,124$ 3,497,147
29.203%32.141%36.067%39.28237.12537.435%
7.5029.79210.57612.66313.96713.961
36.705%41.933%46.644%51.94551.09251.396%
-127-
THIS PAGE IS LEFT BLANK
INTENTIONALLY
-128-
CITY OF ALBERTVILLE, MINNESOTA
Table 6
STATISTICAL SECTION (UNAUDITED)
PROPERTY TAX CAPACITY RATES - DIRECT AND OVERLAPPING GOVERNMENTS
(PER $1,000 OF TAX CAPACITY)
Overlapping Rates
SchoolSchool
Year
DistrictDistrict
Taxes
PayableCityCountyNo. 885No. 728
200631.407%32.561%42.859%35.941%
200731.24030.70845.24633.201
200832.58231.64346.18032.338
200932.93932.56446.70236.130
201036.70535.81652.04939.961
201141.93339.30351.35543.483
201246.64443.44952.63045.542
201351.94544.28557.19550.051
201451.09243.45051.55351.279
201551.39640.53051.08251.635
Source: Wright County Auditor/Treasurer Department
Overlapping rates are those of local and county governments that apply to property owners within the City. Not
all overlapping rates apply to all City property owners (e.g. the rates for special districts apply only to the
proportion of the government's property owners whose property is located within the geographic boundaries of the
special district).
-129-
CITY OF ALBERTVILLE, MINNESOTA
STATISTICAL SECTION (UNAUDITED)
PRINCIPAL TAXPAYERS
DECEMBER 31, 2015
2015
Percent
of Total
Tax
Tax Capacity
TaxpayerCapacityRank
CPG Partners, LP$ 1,097,256115.94%
MSP Albertville Retail Building, LLC187,64822.73
Albertville Medical Building, LLC79,44831.15
Fraser Building LP77,25441.12
Mollie LLC69,25051.01
HGP Architectural Glass, Inc.63,68260.93
Border States Industries, Inc.60,42070.88
Minnegasco, Inc48,37680.70
Xcel Energy47,17690.69
Welcome Furniture and Appliances45,640100.66
Albertville Plaza, LLC--
CWB Albertville Crossing, LLC--
William A. Hinks--
Albertville Investments, LLC--
Manchester II, LLC--
Alshouse Properties, LLC--
Albertville Strip Mall, LLC--
Totals$ 1,776,15025.80%
Source: Wright County Auditor/Treasurer Department
Note: Information not available prior to 2008. This table will be updated on a go-forward basis.
-130-
Table 7
2008
Percent
of Total
Tax
Tax Capacity
CapacityRank
$ 970,238111.36%
--
--
--
--
78,19050.92
--
--
--
79,73840.93
73,77670.86
253,41822.97
91,78831.07
74,09860.87
49,05280.57
48,98690.57
46,542100.54
$ 1,765,82620.68%
-131-
Table 8
CITY OF ALBERTVILLE, MINNESOTA
STATISTICAL SECTION (UNAUDITED)
PROPERTY TAX LEVIES AND COLLECTIONS
LAST TEN FISCAL YEARS
Percent
(1)
Percentageof Total
CollectionCollection
of LevyCollections
Fiscal Totalof Currentin subsequentTotal
Collectedto Levy
YearLevyYear's LevyyearsCollections
2006$2,095,550$2,029,56296.85%$2,095,550100.00%
$ 65,988
20072,370,5172,264,74395.54105,7742,370,517100.00
20082,689,7312,615,66197.2572,4412,688,10299.94
20092,813,2632,685,92795.47125,8372,811,76499.95
20102,939,7552,864,66797.4574,4782,939,14599.98
20113,096,0812,921,03194.35172,4613,093,49299.92
20123,142,2723,122,84399.3812,9953,135,83899.80
20133,205,1063,160,64798.6133,6133,194,26099.66
20143,300,1243,263,34398.8935,0603,298,40399.95
20153,497,1473,461,79698.99-3,461,79698.99
Source: Wright County Auditor/Treasurer Department
(1) Includes state paid property tax credits.
-132-
Table 9
CITY OF ALBERTVILLE, MINNESOTA
STATISTICAL SECTION (UNAUDITED)
RATIOS OF OUTSTANDING DEBT BY TYPE
LAST TEN FISCAL YEARS
Governmental ActivitiesBusiness-type Activities
GeneralTaxLeaseGeneralGeneralTotal
Percentage of
Fiscal ObligationIncrementRevenueObligationObligationPrimaryPer
Personal Income
YearBondsBondsBondsRevenue BondsBondsGovernmentCapita
2006$ 2,775,000$ 55,000$ 6,330,000$ 5,761,792$ -$14,921,7928.09%$ 2,548
20075,515,00030,0006,085,0005,334,357800,00017,764,3579.032,990
20085,245,000-5,230,0004,909,330800,00016,184,3307.692,652
20094,705,000-5,010,0004,601,624800,00015,116,6246.782,431
20104,525,000-4,785,0004,296,150790,00014,396,1505.482,044
20116,218,652-2,875,0004,493,072780,00014,366,7245.432,020
201214,013,689--4,121,7481,228,06519,363,5026.972,705
201313,202,695--6,257,3811,171,75920,631,8357.342,861
201412,807,462--5,855,1901,242,39119,905,0436.752,747
20159,845,317--3,120,172606,08513,571,5744.481,869
Note: Details regarding the City's outstanding debt can be found in the notes to the financial statements.
See the Schedule of Demographic and Economic Statistics on page 141 for personal income and population data.
-133-
Table 10
CITY OF ALBERTVILLE, MINNESOTA
STATISTICAL SECTION (UNAUDITED)
RATIOS OF GENERAL BONDED DEBT OUTSTANDING
LAST TEN FISCAL YEARS
Less
Percentage of
Amounts
Estimated Actual
GeneralAvailable inNet
Value of
Fiscal ObligationDebt ServiceBondedPer
Taxable Property
YearBondsFundsDebtCapita
2006$ 2,775,000$ 293,629$ 2,481,3710.42%$ 424
20076,315,000449,5805,865,4200.87987
20086,045,000511,1705,533,8300.77907
20095,505,000695,3414,809,6590.66774
20105,315,00096,6065,218,3940.79741
20116,998,652331,4606,667,1921.11937
201215,241,7546,793,3008,448,4541.601,180
201314,374,4543,244,23611,130,2182.351,544
201414,049,8533,970,72110,079,1321.991,391
201510,451,4026,189,9424,261,4600.67587
Note: Details regarding the City's outstanding debt can be found in the notes to the financial statements.
See the Schedule of Demographic and Economic Statistics on page 141 for population data.
See the Schedule of Tax Capacity, Market Value and Estimated Actual Value of Taxable Property for property value data.
-134-
Table 11
CITY OF ALBERTVILLE, MINNESOTA
STATISTICAL SECTION (UNAUDITED)
COMPUTATION OF DIRECT AND OVERLAPPING DEBT
DECEMBER 31, 2015
GrossAmount
Bondedof
Percentage
Debt UsedNet Debt
Applicable to
For Net DebtApplicable
District
Calculationto District
Direct Debt
City of Albertville$ 9,845,317100.00%$ 9,845,317
School District #885169,075,00025.0342,327,677
School District #728246,755,0003.648,969,917
Wright County45,135,0005.222,356,304
Total Overlapping Debt$ 460,965,00011.64%$ 53,653,899
Total Direct and Overlapping Debt$ 470,810,31713.49%$ 63,499,216
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.
-135-
CITY OF ALBERTVILLE, MINNESOTA
STATISTICAL SECTION (UNAUDITED)
LEGAL DEBT MARGIN INFORMATION
LAST TEN FISCAL YEARS
Fiscal Year
200620072008
Debt limit (1)$ 11,103,092$ 12,639,942$ 20,441,481
Total net debt applicable to limit---
Total$ 11,103,092$ 12,639,942$ 20,441,481
Total net debt applicable to the limit
as a percentage of debt limit$ -$ -$ -
(1) The debt limit for years 2006-2007 is 2 percent and for the years 2008-2015 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.
-136-
Table 12
Fiscal Year
2009201020112012201320142015
$ 20,875,566$ 19,196,163$ 17,661,990$ 15,860,184$ 14,227,200$ 15,174,843$ 17,874,483
-------
$ 20,875,566$ 19,196,163$ 17,661,990$ 15,860,184$ 14,227,200$ 15,174,843$ 17,874,483
$ -$ -$ -$ -$ -$ -$ -
Legal Debt Margin Calculation for Fiscal Year 2015
Taxable market value$ 595,816,100
Debt limit (3% of market value)$ 17,874,483
Debt applicable to limit
General obligation bonds (2)-
Less: amount available in
Debt Service funds-
Total net debt applicable to limit-
Legal debt margin$ 17,874,483
-137-
Table 13
CITY OF ALBERTVILLE, MINNESOTA
STATISTICAL SECTION (UNAUDITED)
PLEDGED-REVENUE COVERAGE
LAST TEN FISCAL YEARS
General Obligation Revenue Bonds
(1)Net
Debt Service
FiscalGross(2)Revenue
YearRevenueExpensesAvailablePrincipalInterestCoverage
2006$ 749,133$ 213,774$ 535,359$ 404,925$ 242,7450.83
2007740,802329,305411,497427,435226,6660.63
2008699,715317,801381,914455,027204,2590.58
2009633,307294,829338,478307,706178,5490.70
2010635,991281,087354,904305,474169,0930.75
2011721,901305,686416,215323,335158,2960.86
2012733,830346,894386,936362,193161,3600.74
2013734,049453,240280,809371,549180,0560.51
2014771,239439,487331,752394,373171,3710.59
2015915,048473,470441,5782,727,200159,9730.15
Tax Increment Bonds
Revenue fromRevenue from
Debt Service
FiscalSpecialProperty
YearAssessmentsTaxesPrincipalInterestCoverage
2006$ 19,177$ 10,410$ 25,000$ 4,0761.02
200710,91314,76225,0002,7270.93
2008-31230,0008100.01
2009-----
2010-----
2011-----
2012-----
2013-----
2014-----
2015-----
(1) Including interest and other income
(2) Excluding depreciation and interest on bonds
-138-
Table 13
CITY OF ALBERTVILLE, MINNESOTA
STATISTICAL SECTION (UNAUDITED)
PLEDGED-REVENUE COVERAGE - CONTINUED
LAST TEN FISCAL YEARS
Lease Revenue Bonds
Revenue from
Debt Service
FiscalProperty
YearTaxesPrincipalInterestCoverage
2006$ 210,146$ 190,000$ 284,4090.44
2007222,934245,000276,3430.43
2008402,771295,000290,4850.69
2009452,530280,000238,9700.87
2010496,363275,000230,0870.98
2011518,415285,000253,6200.96
2012----
2013----
2014----
2015----
-139-
THIS PAGE IS LEFT BLANK
INTENTIONALLY
-140-
Table 14
CITY OF ALBERTVILLE, MINNESOTA
DEMOGRAPHIC AND ECONOMIC STATISTICS
LAST TEN FISCAL YEARS
TotalPer Capita
Unemployment
Fiscal Number ofPersons perPersonal Personal MedianSchool
Rate (7)
YearPopulation (1)Households (2)Household (2)Income (3)Income (4)Age (5)Enrollment (6)
20065,8562,2202.64$ 184,393,728$ 31,48828.84,1724.3%
20075,9422,2732.61196,810,92433,12228.84,4135.1
20086,1032,3412.61210,345,99834,46628.84,5936.6
20096,2182,3992.59223,005,68435,86528.84,9077.9
20107,0442,3772.96262,880,81537,32028.85,0938.3
20117,1142,3972.97264,612,34437,19628.85,2355.6
20127,1592,4082.97277,747,72338,79728.85,6216.2
20137,2112,4222.98281,229,00039,00034.65,7255.2
20147,2472,4342.98294,800,71340,67934.65,7253.9
20157,2622,4113.01302,658,37441,67734.65,9002.8
Data Sources
(1) Minnesota Office of the State Demographer
(2) Minnesota Office of the State Demographer (2006-2014); Estimated (2015)
(3) Calculated by the City.
(4) US Department of Commerce - Bureau of Economic Analysis (2006-2014); Estimated (2015)
(5) US Census Bureau
(6) Independent School District 885
(7) United States Department of Labor - Bureau of Labor Statistics
Note: Persons per household information was not available for 2015. The City estimated this year based on averages from data compiled for years 2006-2014.
Note: The unemployment rate is for Wright County, the County of which the City is located. Unemployment data was not available for the City.
Note: The per capital personal income is for Wright County, the County of which the City is located. Per capita personal income was not available for the City.
Note: School enrollment is for Independent School District 885. The School District also includes students from the City of St. Michael.
-141-
CITY OF ALBERTVILLE, MINNESOTA
PRINCIPAL EMPLOYERS
CURRENT YEAR AND NINE YEARS AGO (1)
2015
Percentage
of Total City
EmployerEmployment
EmployeesRank
Outlets at Albertville800116.00%
ISD No. 885, St. Michael-Albertville680213.60
Coborn's13032.60
Oldcastle Building Envelopes11342.26
HGP Industries7551.50
Guardian Angels - Engel Haus5961.18
Sherer Brothers Truss5571.10
Fraser Steel Co.4080.80
Fehn Gravel and Excavating, Inc.3590.70
Mold-Tech, Inc.35100.70
Don's Bus Service--
D J's Total Home Care Center--
Truss Manufacturing--
Otsego Tool and Engineering, Inc.--
Radiation Tool and Engineering, Inc.--
Total5,000*40.44%
Source: Northland Securities
* 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.
-142-
Table 15
2008
Percentage
of Total City
Employment
EmployeesRank
800116.00%
27525.50
7531.50
--
753-
--
2080.40
4050.80
--
--
2060.40
2070.40
5541.10
1890.36
17100.34
5,000*26.80%
-143-
CITY OF ALBERTVILLE, MINNESOTA
Table 16
FULL-TIME EQUIVALENT CITY GOVERNMENT EMPLOYEES BY FUNCTION
LAST NINE FISCAL YEARS
Function
200720082009201020112012201320142015
General government6.07.06.05.05.06.56.36.36.3
Public safety
Fire
Full Time Fire Chief--------1.0
Civilians (1)3737333030.033.030.029.031.0
Public works
Engineering1.01.01.01.01.01.00.30.30.3
Maintenance1.01.01.01.01.01.01.51.52.0
Culture and recreation
Parks1.01.01.01.01.01.01.51.52.0
Water1.01.51.51.51.01.51.51.51.5
Sewer1.01.51.51.51.01.51.51.51.5
Total48.050.045.041.040.045.542.541.645.6
Source: City of Albertville
(1) The fire department is made up entirely of volunteer civilians. They are used on an on-call basis only.
Note: Information not available prior to 2007. This table will be updated on a go-forward basis.
-144-
CITY OF ALBERTVILLE, MINNESOTA
Table 17
OPERATING INDICATORS BY FUNCTION
LAST EIGHT FISCAL YEARS
Function
20082009201020112012201320142015
Fire
Fire calls
430 280 257 278 217 229 254 256
Inspections
28 52 288 360 190 212 211 10
Building/engineering
Permits issued
381 482 241 394 391 412 453 542
Public works
Street sweeping (hours)
69 69 69 77 82 74 80 123
Snowplowing (hours)
512 512 512 320 330 791 723 387
Equipment repair (hours)
1,000 1,000 1,000 1,100 1,200 750 600 692
Water
New connections
66 1 2 4 14 21 22 24
Water mains breaks
3 2 2 - 2 2 6 3
Sewer
Average daily treatment flow (thousands of gallons)
516,000 447,000 466,000 490,000 468,000 475,000 510,000 474,000
Sources: City of Albertville
Note: Indicators are not available for the general government function.
Note: Information not available prior to 2008. This table will be updated on a go-forward basis.
-145-
THIS PAGE IS LEFT BLANK
INTENTIONALLY
-146-
CITY OF ALBERTVILLE, MINNESOTA
Table 18
CAPITAL ASSET STATISTICS BY FUNCTION
LAST EIGHT FISCAL YEARS
Function
20082009201020112012201320142015
Public Safety
Fire stations
Stations11111111
Public Works
Highways and streets
Streets (miles)3636363636363838
Street lights417417417417417417417417
Traffic signals55556777
Culture and recreation
Parks division
Parks1111111111111111
Parks acreage120120120120125125125125
Arena/Civic Center11111111
Baseball diamonds55555555
Basketball courts55555555
Bike trails (miles)55555555
Hockey rinks/outdoor22222222
Softball diamonds12222222
Tennis courts55555555
Volleyball courts11111111
Utilities
Water
Miles of water main4546525252525252
Sewer
Miles of sanitary sewer3435373737373737
Lift stations99101010101010
Maximum daily treatment capacity (gallons)929,000929,000929,000929,000929,000929,000929,000929,000
Storm sewer
Miles of storm sewer2626353535353535
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.
-147-