2019 FINAL Comprehensive Annual Financial Report (CITY OF ALBERTVILLE 2019A [12/31/2019]
Comprehensive
Annual Financial Report
For the Year Ended December 31, 2019
City of Albertville, Minnesota
CITY OF ALBERTVILLE, MINNESOTA
COMPREHENSIVE ANNUAL FINANCIAL REPORT
FOR THE FISCAL YEAR ENDED
DECEMBER 31, 2019
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
City of Albertville, Minnesota
Comprehensive Annual Financial Report
Table of Contents
For the Year Ended December 31, 2019
Page No.
Introductory Section
Letter of Transmittal from City Administratorand Finance Director9
Certificate of Achievement of Excellence in Financial Reporting13
OrganizationalChart14
Elected and Appointed Officials15
Financial Section
Independent Auditor’s Report19
Management’s Discussion and Analysis23
Basic Financial Statements
Government-wide Financial Statements
Statement of Net Position37
Statement of Activities38
Fund Financial Statements
GovernmentalFunds
Balance Sheet42
Reconciliation of the Balance Sheet to the Statement of Net Position45
Statement of Revenues, Expenditures and Changes in Fund Balances46
Reconciliation of the Statement of Revenues, Expenditures and Changes in Fund
Balancesto the Statement of Activities48
General Fund
Statement of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual 49
Proprietary Funds
Statementof Net Position50
Statement of Revenues, Expenses and Changes in Net Position51
Statement of Cash Flows52
Fiduciary Funds
Statement of Fiduciary Net Position54
Statement of Changes inFiduciary Net Position55
Notes to the Financial Statements57
Required Supplementary Information
Schedule of Employer’s Share of Public Employees Retirement Association Net Pension Liability -
General Employees Retirement Fund90
Schedule of Employer’s Public Employees Retirement Association Contributions -
General Employees Retirement Fund90
Notes to the Required Supplementary Information - General Employee Retirement Fund91
Schedule of Employer’s Share of Public Employees Retirement Association Net Pension Liability -
Public Employees Police and Fire Fund92
Schedule of Employer’s Public Employees Retirement Association Contributions -
Public Employees Police and Fire Fund92
Notes to the Required Supplementary Information - Public Employees Police andFire Fund92
Schedule of Changes in the Fire Relief Association’s Net Pension Liability (Asset) and Related Ratios94
Schedule of Employer’s Fire Relief Association Contributions95
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City of Albertville, Minnesota
Comprehensive Annual Financial Report
Table of Contents (Continued)
For the Year Ended December 31, 2019
Page No.
Combining and Individual Fund Financial Statements and Schedules
Nonmajor Governmental Funds
Combining Balance Sheet100
Combining Statement of Revenues, Expenditures and Changes in Fund Balances101
Nonmajor Capital Projects Funds
Combining Balance Sheet104
Combining Statement of Revenues, Expenditures and Changes in Fund Balances 106
General Fund
Schedule of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual 108
Debt Service Funds
Combining Balance Sheet112
Combining Schedule of Revenues, Expenditures and Changes in Fund Balances114
Fiduciary Funds
Combining Statement of Fiduciary Net Position116
Combining Statement of Changes in Fiduciary Net Position117
Summary Financial Report
Revenues and Expenditures for General Operations - Governmental Funds118
Table Page No.
Statistical Section (Unaudited)
Net Position by Component 1 122
Changes in Net Position 2 124
Fund Balances of Governmental Funds 3 128
Changes in Fund Balances of Governmental Funds 4 130
Tax Capacity, Market Value and Estimated Actual Value of Taxable Property 5 132
Property Tax Capacity Rates - Direct and Overlapping Governments 6 135
Principal Taxpayers 7 136
Property Tax Levies and Collections 8 138
Ratios of Outstanding Debt by Type 9 139
Ratios of General Bonded Debt Outstanding10140
Computation of Direct and Overlapping Debt11141
Legal Debt Margin Information12142
Pledged-Revenue Coverage13144
Demographic and Economic Statistics14145
Principal Employers15146
Full-time Equivalent City Government Employees by Function16148
Operating Indicators by Function17149
Capital Asset Statistics by Function18151
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INTRODUCTORY SECTION
CITY OF ALBERTVILLE
ALBERTVILLE, MINNESOTA
FOR THE YEAR ENDED
DECEMBER 31, 2019
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May 11, 2020
Honorable Mayor and Members of the City Council
City of Albertville, Minnesota
Minnesota statutes require the Cityto issue an annual report on its financial position and activity,
prepared in accordance with generally accepted accounting principles (GAAP), and audited in
accordance with generally accepted auditing standards by a firm of licensed certified public
accountants, or the Office of the State Auditor. Pursuant to that requirement, we hereby issue the
Comprehensive Annual Financial Report (CAFR) of the City of Albertvillefor the fiscal year ended
December 31, 2019.
This report consists of management’s representations concerning the finances of the City of
Albertville.Management assumes full responsibility for the completeness and reliability of the
information contained in this report, based upon a comprehensive framework of internal control
standards that it has established for this purpose. Because the cost of internal control should not
exceed anticipated benefits, theobjective is to provide reasonable, rather than absolute
assurance that the financial statements are free of any material misstatements. As management,
we assert that, to the best of our knowledge and belief, this financial report is complete and
reliable in all material respects.
The City of Albertville’s financial statements have been audited bythepublic accounting firm of
Abdo, Eick & Meyers, LLP. The goal of the independent audit was to provide reasonable
assurance that the financial statements ofthe City of Albertvillefor the fiscal year ended
December 31, 2019, are free of any material misstatements.Included within this report, Abdo,
Eick & Meyers, LLP. has issued an unqualified opinion on the City of Albertville’s financial
statements for theyear ended December 31, 2019.
Management’s Discussion and Analysis (MD&A) immediately follows the independent auditor’s
report and provides a narrative introduction, overview, and analysis of the basic financial
statements. This letter of transmittal is designed to complement the MD&A and should be read in
conjunction with it.
Profile of the City of Albertville
The City of Albertville is located in the east central portion of Minnesota, approximately 35 miles
northwest of the Twin Cities, and approximately halfway between the metropolitan areas of
Minneapolis/St. Paul and St. Cloud. The City of Albertville is located in the northeasternportion
of Wright County, along the Interstate 94 corridor.
The City covers 4.56square miles. The current population is approximately7,485.
The City of Albertvilleoperates under the council/administrator form of government. The
governing bodyconsists of the Mayor and four Council members, elected at large and on a non-
partisan basis. The Mayor is elected to a two-year term and four Council Members are elected to
a four-year term, with elections held in each even-numbered year. Notmore than two Council
member’s terms expire inany one year.
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The Mayor and Council appoint a full-time City Administrator, who is responsible for overall
supervision of City operations. The City Council is responsible for, amongother things, passing
ordinances, adopting the budget, appointing committees, hiring the City Administrator, other staff
and appointing consultants.
The City provides its residents and businesses with a full range of services, including fire
protection, law enforcement, public works, building inspection, planning and code enforcement,
parks/trail improvements and maintenance, curbside recycling and other general activities. The
City contracts withtheWright County Sheriff’s Department for 28-hour law enforcement. In
addition, the City offers the following services to residents: water, sewer, storm drainage, and
recycling, which are operated as enterprises. The City also partnerswith neighboring
communities to provide public transit, library, and senior center services.In addition, the
governing body is financially accountable for the Economic Development Authority and therefore,
these activities are included in the reporting entity.
Relevant Financial Policies
The annual budget serves as the foundation for the City’s financial planning and control.
Developing the budget begins annually in Junewhenthe Finance Director preparesprojected
revenues and expenses forthe next year’sdraftbudget. Upon review and revisions by the
Finance Director and Administrator, the draft budget is reviewed by the Department Heads.
Department budget requests are compiled by the Finance Director and reviewed by boththe
Finance Director and Administrator. Integral to the budget process is a staff meeting to review
thedraft budget, which is then presented to the City Council. City Council and staff work on the
budget over the course oftwo to three budget workshops. Following Council direction and public
input, the preliminarybudget is updated and brought back for Council approval. Council adopts
the preliminary budget in September and the Final Budget is adopted in December of each year.
If a need arises for a significant budget amendment duringthe year, it is brought to City Council
for approval.
Also, available within, arenotes pertaining to basic financial statements for information on the
Joint Powers Water Board (the City’s water operations, operated in conjunction with the cities of
St. Michael and Hanover).
Economic Condition and Outlook
Based on permit activity, the local economy is strongand continues to grow. A total of 526
building permits were issued in 2019 with a total valuation of $10,716,763.The number of new
housing units in 2019 was 19, with an average valuation of approximately $302,361per home.
TheStateof Minnesota isconstructingsix lanes of freeway to the City of Albertville, as well as,
improving the existing interchange access to the freeway at county state aid highways 37 and 19.
Anotherkey financial factor affecting the City’s financial outlook is the City’s bond rating, which
has increased twotimes since 2002and is currently anAA3.
The area school districts are highly desirable and driving new residential interest to the area.
In December 2019, a novel strain of coronavirus (COVID-19) surfaced. The spread of COVID-19
around the world in the first quarter of 2020 has caused significant volatility in U.S. and
international markets. There is significant uncertainty around the breadth and duration of
business disruptions related to COVID-19, as well as its impact on the U.S. and international
economies and, as such, the Organization is unable to determine if it will have a material impact
to its operations.
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Commercial, Industrial and Retail
The City of Albertville’s commercial activity remains steady and it is a priority of the City to
stimulate new commercial and industrial development. In 2019, construction commenced on a
new convenient.
Major Initiatives
Maintenance and preservation of the City infrastructure and facilities is a priority for the City. In
2019, the City completed multipleinfrastructure improvements related to streets, utilities, trails
and parks.
TheCity hasactively pursued regional transportation and interstate improvements through the I-
94 Coalition, a consortium of cities and businesses. Through the State’s Corridors for Commerce
legislation, multiple projects benefiting Interstate 94 have been successfully completed, and in
2019 the State begana project to build 6-lanes of freeway between Highway 241 in St. Michael
and CSAH 19 in Albertville. This project will benefit Albertville by extending the 6-lanes to the
City and by improving the City’s two interstate interchanges and improving access to the
interstate. The Interstate project is approximately $75 million (+/-) and is funded by the State.
TheCity is in the process of completingimprovements to its wastewater treatment plant and
facility.
Long-term Financial Planning
The City of Albertville recognizes the importance of maintaining an appropriate level of fund
balance. Sound fiscal management of Albertville’s general fund operation budget ismade more
secure by establishing City goals regarding the size and use of the annual general fund balances.
This policy provides two goals and measures for determining the appropriate fund balance. The
security factor must be met before the dependence factor can be applied. The City of Albertville
will strive to meet these goals.
1.Security. Ensure that, at NO time during budget preparation, the amounts remaining in
current year-end fund balance (defined as the prior year’s known fund balance amount
less the amount designated for application to the current year budget) be allowed to be
less than 35% of the next year’s planned budget for the General Fund as a minimum. As
economic conditions warrant, an amount larger than this shall be maintained. This will be
applied to cash flow, revenue reserves and insurance, and liability needs, or be available
in the time of emergencies.
If the current fund balance meets or exceeds the 35%, the intent is to increase this level
to 50% of next year’s expenditures. If the fund balance level falls below the 35% due to
unexpected expenses, a replenishment plan will be developed.
2.Dependence. In building the next year’s budget, the percentage of total annual budget
financing that can come from fund balances will not exceed 5% of the planned budget.
PropertyTaxes
To sustain or expand City services, while keeping property taxes stable, the Council has diligently
strived to maintain a level tax rate. The property tax levy for the year divided by the city-widetotal
net tax capacity equals the tax rate.
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Independent Audit
The financial statements were audited by Abdo, Eick & Meyers, LLP, Certified Public
Accountants, and their opinion has been included in this report. The scope of the audit included
the basic financial statements of the City for the year ended December 31, 2019. Their audit was
made in accordance with auditing standards generally accepted in the United States of America.
The scope of the audit was sufficient to satisfy state and federal requirements. The auditors’
opinion on the City’s financial statements indicates that the auditors’ examination has disclosed
no conditions which cause them to believe that the financial statements are not fairly stated, in all
material respects.
Certificate of Achievement
The Government Finance OfficersAssociation of the United States and Canada (GFOA) awarded
aCertificate of Achievement for Excellence in Financial Reporting to the City for its CAFR for the
fiscal year ended December 31, 2018. This is the ninthconsecutiveyear the City has received
this prestigious award. In order to be awarded a Certificateof Achievement, a government must
publish an easily readable and efficiently organized CAFR, whose contents conforms to program
standards. Such reports must satisfy both accounting principles generally accepted in the United
States of America and applicable legal requirements.
A Certificate of Achievement is valid for a period of one year only. We believe our current CAFR
continues to meet the Certificate of Achievement’s requirements and we are again submitting it to
the GFOA to determine its eligibility for another certificate.
Acknowledgments
I would like to commend Finance DirectorLannesand the entire city staff for their hard work and
dedication. I would like to recognize the CPA firm Abdo, Eick & Meyers, LLP for their
professional assistance. Finally, thank you to the Mayor and members of the City Council for
your continued interest and support in planning and conducting the financial operations of the City
in a very responsible and professional manner.
Respectfully submitted,
Adam Nafstad
City Administrator/PWD/CE
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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 DirectorSTMA Ice ArenaFire Department
(Building Tech)ZoningSewer Utility DeptStreets and Parks
Election JudgesFinance StaffFire Chief
Utility EmployeesParks Employees
Fire Officers
Volunteer Firemen
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City of Albertville, Minnesota
Elected and Appointed Officials
For the Year Ended December 31, 2019
ELECTED
NameTitleTerm Expires
Jillian HendricksonMayor12/31/20
Rob OlsonCouncil Member12/31/22
Walter HudsonCouncil Member12/31/20
Rebecca Halling Council Member12/31/22
Aaron CockingCouncil Member12/31/20
APPOINTED
NameTitle
Adam NafstadCity Administrator
Tina LannesFinance Director
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FINANCIAL SECTION
CITY OF ALBERTVILLE
ALBERTVILLE, MINNESOTA
FOR THE YEAR ENDED
DECEMBER 31, 2019
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INDEPENDENT AUDITOR’S REPORT
Honorable Mayor and City Council
City of Albertville, Minnesota
Report on the Financial Statements
We have audited the accompanying financial statements of governmental activities, the business-type activities, each
major fund and the aggregate remaining fund information of the City of Albertville, Minnesota (the City), as of and for the
year ended December31, 2019, and the related notes to the 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 isresponsible 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 of 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 financial statement presentation.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for ouraudit opinions.
Opinions
In our opinion, the financial statements referred to above present fairly, in all material respects, the respective financial
position of the governmental activities, the business-type activities, each major fundand the aggregate remaining fund
information of the City as of December 31, 2019, and the respective changes in financial position and, where applicable,
cash flows thereof and the respective budgetary comparison for the General fund for the year then ended in conformity
with accounting principles generally accepted in the United States of America.
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Change in Accounting Standards
As described in Note 8 to the financial statements, the City adopted the provisions of Governmental Accounting
Standard Board (GASB) Statement No. 84, Fiduciary Activities, for the year ended December 31, 2019. Adoption of the
provisions of these statements results in significant change to the classifications of the components of the financial
statements.
Other Matters
Required Supplementary Information
Accounting principles generally accepted in the United States of America require that the Management’s Discussion and
Analysis starting on page 23and the Schedules of Employer’s Share of the Net Pension Liability, the Schedules of
Employer’s Contributions,the related note disclosures, the Schedule of Changes in Net Pension Liability (Asset) and
Related Ratios starting on page 90be presented to supplement the basic financial statements. Such information, although
not a part of the basic financial statements, is required by the Governmental Accounting Standards Board 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 assuranceon the information
becausethe limited procedures do not provide us with sufficient evidence to express an opinion or provide any assurance.
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 statementsandschedulesare 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.
Other Reporting Required by Government Auditing Standards
In accordance with Government Auditing Standards, we have also issued our report dated May 11, 2020, on our
consideration of the City’s internal control over financial reporting and on our tests of its compliance with certain provisions
of laws, regulations, contracts, and grantagreements and other matters. The purpose of that report issolely to describe
the scope of our testing of internal control over financial reporting and compliance and the results of that testing, and not
to provide an opinion on the effectiveness of the City’s internal control over financial reporting or on compliance. That
report is an integral part of an audit performed in accordance with Government Auditing Standardsin considering the
City’s internal control overfinancial reporting and compliance.
ABDO, EICK & MEYERS, LLP
Minneapolis, Minnesota
May 11, 2020
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Management’s Discussion and Analysis
As management of the City of Albertville, Minnesota, (the City), we offer readers of the City’s financial statements this
narrative overview and analysis of the financial activities of the City for the fiscal year ended December 31, 2019.
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 $50,225,670(net position). Of this amount, $16,391,759
(unrestricted net position) may be used to meet the City’s ongoing obligations to citizens and creditors.
The City’s total net positionincreased$2,558,861.This increaseis attributable to the governmental activities
increasing$1,070,461due to increasedcapital reserves and revenues for charges for services (building, fire calls,
licenses and permits), fire aid, tax increment, and lease payments.
As of the close of the current fiscal year, the City’s governmental funds reported combined ending fund balances
of $10,586,502,a decreaseof $1,516,266in comparison with the prior year.Approximately 65.2percent of this
total amount, $6,906,224is available for spending at theCity’s discretionbut a portion has been assigned for
specific purposes.
At the end of thecurrent fiscal year, unassignedfund balance for the General fund was $2,477,774, or
71.7percent of total General fund 2019expenditures.
The City’s total debt increased 48.4percent during the current fiscal year. The increase was attributable to the
issuance of the 2019A General Obligation Sanitary Sewer Bonds.
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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
more detailed data. The statements are followed by a section of combining and individual fund financial statements and
schedules which further explain and support the information in the financial statements.Figure 1 shows how the required
parts of this annual report are arranged and relate to one another. In addition to these required elements, we have
included a section with combining and individual fund financial statements and schedules that provide details about non-
major governmental funds, which are added together and presented in single columns in the basic financial statements.
Figure 1
Required Components of the
City’s Annual Financial Report
Management's
Basic Required
Discussion and
Financial Supplementary
Analysis
StatementsInformation
Government-FundNotes to the
wide Financial FinancialFinancial
StatementsStatementsStatements
SummaryDetail
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Figure 2 summarizes the major features of the City’s financial statements, including the portion of the City government
they cover and the types of information they contain. The remainder of this overview section of management’s discussion
and analysis explains the structure and contents of each of the statements.
Figure 2
Major Features of the Government-wide and Fund Financial Statements
Fund Financial Statements
Government-wide Governmental FundsProprietaryFunds
Statements
ScopeEntire City governmentThe activities of the Citythat Activities the City operates
(except fiduciary funds)and are not proprietary orsimilar to private
the City’s component unitsfiduciary, such as police, fire businesses, such as the
and parkswater and sewer system
Required financial
Statement of Net Balance SheetStatementsof Net
statements
PositionPosition
Statement of Revenues,
Statement of ActivitiesStatements of
Expenditures, and
Changes in Fund Revenues, Expenses
Balances and Changes in Net
Position
Statements of Cash
Flows
Accounting basis and Accrual accounting and Modified accrual accounting Accrual accounting and
measurement focuseconomic resources focusand current financial economic resources focus
resources focus
Type of asset/liability All assets and liabilities, both Onlyassets expected to be All assets and liabilities,
informationfinancial and capital, and used up and liabilities that both financial and capital,
short-term and long-term come due during the year or and short-term and long-
soon thereafter; no capital term
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 of resources, regardless of
resources informationwhen cash is received or used up and deferred when cash is received or
paidinflows of resources that paid
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 received during or soon after during the year, regardless
when cash is received or the end of the year; of when cash is received or
paidexpenditures when goods or paid
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 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 soon as the underlying event giving rise to the change occurs, regardless
of the timing of related cash flows.Thus, revenues and expenses are reported in this statement for some items that will
only result in cash flows in future fiscal periods (e.g., uncollected taxes and earned but unused vacation leave).
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Both of the government-wide financial statements distinguish functions of the City that are principally supported by taxes
and intergovernmental revenue (governmental activities) from other functions that are intended to recover all or a
significant portion of their costs through user fees and charges (business-type activities).The governmental activities of
the City include general government, public safety, public works, culture and recreation, economic development and
interest on long-term debt. The business-type activities of the City include sewer, water, storm waterand recycling.
The government-wide financial statements start on page 37 of this report.
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 activitiesin 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 resourcesavailable 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 activities
in the government-wide financial statements. By doing so, readers may better understand the long-term impact by the
government’s near-term financing decisions. Both the governmental fund balance sheet and the governmental fund
statement of revenues, expenditures and changes in fund balances provide a reconciliation to facilitate this comparison
between governmental fundsandgovernmental activities.
The City maintains 11 individual 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 ReserveandTIF #17 Old Castlefunds - all of which are considered to be
major funds. Data from the other governmental funds are combined into a single, aggregated presentation. Individual fund
data for each of these non-major governmental funds is provided in the form of combining statements or schedules
elsewhere in this report.
The City adopts an annual appropriated budget for its General fund.A budgetary comparison statement has been
provided for the Generalfundto demonstrate compliance with this budget.
The basic governmental fund financial statements start on page42of 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 page50of this report.
FiduciaryFunds.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 page54of 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 57 of this report.
OtherInformation.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 page100of this report.
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Required Supplementary Information.In addition to the basic financial statements and accompanying notes, this report
also presents certain required supplementary information concerning the City’s progress in funding its obligation to
provide pension and other post-employment benefits to its employees. Required supplementary information can be found
starting on page90of this report.
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 $50,225,670at the close of the most recent
fiscal year.
By far, the largest portion of the City’s net position (56.6percent) 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 assetsto 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
20192018(Decrease)20192018(Decrease)
Current and Other Assets$13,780,998$15,931,125$(2,150,127)$12,260,062$10,086,693$2,173,369
Capital Assets23,288,67221,100,6362,188,03617,137,14711,532,0845,605,063
Total Assets37,069,67037,031,76137,90929,397,20921,618,7777,778,432
Deferred Outflows of Resources543,704553,753(10,049)51,15259,627(8,475)
Long-term Liabilities Outstanding6,803,2607,630,158(826,898)8,384,9152,897,1575,487,758
Other Liabilities294,542451,057(156,515)973,701151,605822,096
Total Liabilities7,097,8028,081,215(983,413)9,358,6163,048,7626,309,854
Deferred Inflows of Resources314,144373,332(59,188)65,50393,800(28,297)
Net Position
Net investment in capital assets17,512,79216,996,701516,09110,922,1919,046,7371,875,454
Restricted5,398,9283,482,5271,916,401---
Unrestricted7,289,7088,651,739(1,362,031)9,102,0519,489,105(387,054)
Total Net Position$30,201,428$29,130,967$1,070,461$20,024,242$18,535,842$1,488,400
An additional portion of the City’s net position,$5,398,928,represents resources that are subject to external restrictions
on how they may be used. The remaining balance of unrestricted net position$16,391,759may be used to meet the City’s
ongoing obligations to citizens and creditors.
At the end of the current fiscal year, the City is able to report positive balances in all three categories of net position, both
for the City as a whole, as well as for its separate governmental and business-type activities.
27
Governmental Activities.Governmental activities increasedthe City’s net position$1,070,461. Significant changes from
the prior year are noted below:
Governmental activities increasing $1,070,461due to increased capital reserves and revenues for charges for
services (building, fire calls, licenses and permits), fire aid, tax increment, and lease payments.
City of Albertville’s Changesin NetPosition
Governmental ActivitiesBusiness-type Activities
IncreaseIncrease
20192018(Decrease)20192018(Decrease)
Revenues
Program Revenues
Charges for services$968,868$1,074,190$(105,322)$1,529,146$1,536,343$(7,197)
Operating grants and contributions191,470193,526(2,056)22,41616,7945,622
Capital grants and contributions359,247150,340208,9071,515,818201,5611,314,257
General Revenues
Taxes
Property taxes4,005,8883,886,255119,633---
Tax increment232,684231,2471,437---
Grants and contributions
not restricted to
specific programs113,056111,9791,077---
Gain on sale of capital assets140,879-140,879---
Miscellaneous---
Unrestricted investment earnings384,339120,130264,209346,171109,248236,923
Total Revenues6,396,4315,767,667628,7643,413,5511,863,9461,549,605
Expenses
General government767,343737,37529,968---
Public safety1,877,4571,529,785347,672---
Public works1,195,5601,757,764(562,204)---
Culture and recreation1,069,989611,258458,731---
Economic development223,663221,3192,344---
Interest on long-term debt191,958167,87224,086---
Sewer---1,102,919818,418284,501
Water---451,246411,15140,095
Storm water---252,627272,024(19,397)
Recycling---118,359106,51411,845
Total Expenses5,325,9705,025,373300,5971,925,1511,608,107317,044
Change in Net Position 1,070,461742,294-1,488,400255,839-
Net Position, January 129,130,96728,388,673742,29418,535,84218,280,003255,839
Net Position, December 31$30,201,428$29,130,967$1,070,461$20,024,242$18,535,842$1,488,400
28
The following graph depicts various governmental activities and shows the revenue and expenses directly related to those
activities.
Expenses and Program Revenues - Governmental Activities
$2,000,000
$1,800,000
$1,600,000
$1,400,000
$1,200,000
$1,000,000
$800,000
$600,000
$400,000
$200,000
$-
GeneralPublic SafetyPublic WorksCulture andEconomicInterest on Long-
GovernmentRecreationDevelopmentterm Debt
ExpensesProgram Revenues
Revenues by Source - Governmental Activities
For the most part, increases in expenses closely paralleled inflation and growth in the demand for services.
6.0%,Unrestricted 3.0%,Operating
15.1%,Charges for
Investment Grants and
Services
EarningsContributions
2.2%,
Miscellaneous
5.6%,Capital
Grants and
Contributions
1.8%,Grants and
Contributions
Unrestricted
66.3%,Taxes
29
Business-type Activities.Business-type activities increasedthe City’s net positionby $1,488,400.
Expenses and Program Revenues - Business-type Activities
$2,500,000
$2,000,000
$1,500,000
$1,000,000
$500,000
$-
SewerWaterStorm WaterRecycling
ExpensesProgram Revenues
Revenues by Source - Business-type Activities
44.8%,Charges for
Services
0.7%,Operating
Grants and
Contributions,
10.1%,Investment
Earnings
44.4%,Capital
Grants and
Contributions
30
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
$10,586,502,a decreaseof $1,516,266in comparison with the prior year.Approximately 65.2percent of this total amount,
$6,906,224, constitutes assigned and unassignedfund balance, which is available for spending at the City’s discretionbut
assigned for specific purposes.The remainder of fund balance $3,527,442is not available for new spending because it is
either 1) nonspendable $140,151or 2)restricted $5,398,928.
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 $2,617,925.The fund balance of the City’sGeneral fund increased $231,615 during the current fiscal year. This
increase is attributable to changes for services (buildings, fire calls, licenses and permits), fire aid, and lease payments.
The Debt Servicefundbalance decreased$152,085from the prior year for an ending fund balance of $3,257,099. The
City levies 105% of the following years debt service payment.
The Capital Outlay Reservefundbalance decreased $1,537,308, for an ending fund balance of $4,853,536. The City
budgets annually for future capital projects and purchases.
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$9,102,051.The total increasein net
positionfor the funds was $1,488,400.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 not amended during the year.The budgetdid not call for an increase ordecrease in
fund balance. The actual activity of the General fund resulted in an increase of $231,615. The general fund received more
revenues than budgeted in licenses and permits and charges for services due to the STMA Arena Addition, and
unexpected development projects. In addition, the City also budgeted for two additional employees in 2018 but they were
hired in the last quarter ofthe year.
Revenueswereoverbudget by $558,141.All revenue categories were over budget, with the exception of taxes. Charges
for services and the licenses and permits revenue sources had the largest positive variances of$380,273 and $53,332,
respectively.Thisincrease is attributable to changes for services (buildings, fire calls, licenses and permits), fire aid, and
lease payments.
Expenditures were overbudget by$326,526.Public safetywas over budget by $67,573and culture and recreationwas
over budget by$319,659.The City had a larger street project in addition to park project, engineering for several projects,
increased fire expenses and the centennial celebration.
31
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, 2019, amounts to $40,425,819(netof 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 decreasein the City’s investment in capital assets for the current fiscal year was due to
depreciation.
Additional information on the City’s capital assets can be found in Note 3B starting on page69of this report.
City of Albertville’s Capital Assets
(Netof Depreciation)
Governmental ActivitiesBusiness-type Activities
IncreaseIncrease
20192018(Decrease)20192018(Decrease)
Land$3,983,292$3,849,800$133,492$351,834$351,834$-
Construction in Progress-194,496(194,496)6,590,589548,1326,042,457
Buildings4,246,1844,406,531(160,347)3,078,1783,196,170(117,992)
Infrastructure11,250,94810,544,130706,8187,010,6497,274,476(263,827)
Land Improvements1,355,9031,481,507(125,604)---
Machinery and Equipment761,929457,991303,93841,89657,892(15,996)
Vehicles1,690,416166,1811,524,23564,001103,580(39,579)
Total$23,288,672$21,100,636$2,188,036$17,137,147$11,532,084$5,605,063
Long-term Debt:At the end of the current fiscal year, the City had total bonded debt outstanding of$13,942,725.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 theCity.
City of Albertville’s Outstanding Debt
Governmental ActivitiesBusiness-type Activities
IncreaseIncrease
20192018(Decrease)20192018(Decrease)
General Obligation Special
Assessment Bonds$5,967,076$6,911,370$(944,294)$318,923$395,229$(76,306)
General Obligation
Revenue Bonds---7,656,7262,090,1185,566,608
Total$5,967,076$6,911,370$(944,294)$7,975,649$2,485,347$5,490,302
The City’s total debt increased$4,546,008during the current fiscal year.The increase was attributable to debt issuance.
Minnesota statutes limit the amount of net general obligation debt a City may issue to 3 percent of the market value of
taxable property within the City.Net debt is debt payablesolely from ad valorem taxes. The City’s applicable debt does
not exceed the limit set forth in statute.
Additional information on the City’s long-term debt can be found in Note 3D startingon page71of this report.
32
Economic Factors and Next Year’s Budgets and Rates
Residential property values continue to increase from the previous years and neighborhoods continue to be very stable.
New housing starts remain steady and overall permit activity remains steady. Commercial property values have improved
and commercial interest is strong.
Budgeted capital projects are generally targeted towards maintenance and preservation of the City’s infrastructure.
Many transportation infrastructure projects are underway, including Interstate 94, County State Highway 19, and County
State Highway 38. These improvements will improve access to and from the interstate and commercial properties.
Requests for Information
This financial report is designed to provide a general overview of the City’s finances for all those with an interest in the
City’s finances. Questions concerning any of the information provided in this report or requests for additional financial
information should be addressed to the Finance Director, City of Albertville, 5959 Main Avenue, Albertville, Minnesota
55301.
33
34
GOVERNMENT-WIDEFINANCIAL STATEMENTS
CITY OF ALBERTVILLE
ALBERTVILLE, MINNESOTA
FOR THE YEAR ENDED
DECEMBER 31, 2019
35
36
City of Albertville, Minnesota
Statement of Net Position
December 31, 2019
GovernmentalBusiness-type
ActivitiesActivitiesTotal
Assets
Cash and temporary investments$ 9,151,389$ 9,745,634$ 18,897,023
Restricted cash-1,760,6931,760,693
Receivables
Interest54,443-54,443
Taxes47,232-47,232
Accounts31,007194,500225,507
Notes - due within one year73,148-73,148
Notes - due in more than one year877,78132,144909,925
Special assessments1,523,505105,2351,628,740
Due from other governments237,393393,911631,304
Prepaid items89,15127,945117,096
Equity interest in joint venture224,137-224,137
Net pension asset199,859-199,859
Land held for resale1,271,953-1,271,953
Capital assets
Land and construction in progress3,983,2926,942,42310,925,715
Depreciable assets, net of accumulated depreciation19,305,38010,194,72429,500,104
Total Assets37,069,67029,397,20966,466,879
Deferred Outflows of Resources
Loss on refunding bonds191,196-191,196
Deferred pension resources352,50851,152403,660
Total Deferred Outflows of Resources543,70451,152594,856
Liabilities
Accounts and contracts payable90,721856,256946,977
Escrows payable 148,906-148,906
Due to other governments-56,34256,342
Accrued interest payable34,29249,24883,540
Accrued salaries payable20,62311,85532,478
Noncurrent liabilities - due within one year989,009721,6181,710,627
Noncurrent liabilities - due in more than one year5,155,4127,336,18912,491,601
Net pension liability 658,839327,108985,947
Total Liabilities7,097,8029,358,61616,456,418
Deferred Inflows of Resources
Deferred pension resources314,14465,503379,647
Net Position
Net investment in capital assets17,512,79210,922,19128,434,983
Restricted for
Debt service5,268,736-5,268,736
Park dedication9,098-9,098
Tax increment121,094-121,094
Unrestricted 7,289,7089,102,05116,391,759
Total Net Position$ 30,201,428$ 20,024,242$ 50,225,670
The notes to the financial statements are an integral part of this statement.
37
City of Albertville, Minnesota
Statement of Activities
For the Year Ended December 31, 2019
Program Revenues
OperatingCapital Grants
Charges forGrants andand
Functions/Programs
ExpensesServicesContributionsContributions
Governmental Activities
General government$767,343$544,149$45,578$30,304
Public safety1,877,457335,444137,321-
Public works1,195,5601,750(26,765)324,868
Culture and recreation1,069,98987,52516,2084,075
Economic development223,663-19,128-
Interest on long-term debt191,958---
Total Governmental Activities5,325,970968,868191,470359,247
Business-type Activities
Sewer1,102,919866,6029,4561,488,937
Water451,246348,310-25,772
Storm Water252,627209,206-1,109
Recycling118,359105,02812,960-
Total Business-type Activities1,925,1511,529,14622,4161,515,818
Total$7,251,121$2,498,014$213,886$1,875,065
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
Gain on sale of capital assets
Total General Revenues
Change in Net Position
Net Position, January 1
Net Position, December 31
The notes to the financial statements are an integral part of this statement.
38
Net (Expenses) Revenues
and Changes in Net Position
GovernmentalBusiness-type
ActivitiesActivitiesTotal
$(147,312)$-$(147,312)
(1,404,692)-(1,404,692)
(895,707)-(895,707)
(962,181)-(962,181)
(204,535)-(204,535)
(191,958)-(191,958)
(3,806,385)-(3,806,385)
-1,262,0761,262,076
-(77,164)(77,164)
-(42,312)(42,312)
-(371)(371)
-1,142,2291,142,229
(3,806,385)1,142,229(2,664,156)
3,497,033-3,497,033
508,855-508,855
232,684-232,684
113,056-113,056
384,339346,171730,510
140,879-140,879
4,876,846346,1715,223,017
1,070,4611,488,4002,558,861
29,130,96718,535,84247,666,809
$30,201,428$20,024,242$50,225,670
The notes to the financial statements are an integral part of this statement.
39
40
FUNDFINANCIAL STATEMENTS
CITY OF ALBERTVILLE
ALBERTVILLE, MINNESOTA
FOR THEYEAR ENDED
DECEMBER 31, 2019
41
City of Albertville, Minnesota
Balance Sheet
Governmental Funds
December 31, 2019
Capital Projects
Capital
DebtOutlay
GeneralServiceReserve
Assets
Cash and temporary investments$2,549,914$1,604,411$4,712,458
Receivables
Taxes47,232--
Accounts31,007--
Special assessments51,5051,094,999377,001
Interest49,3715,072-
Notes-950,929-
Advances to other funds-426,664-
Due from other governments87,393-150,000
Prepaid items89,151--
Land held for resale51,0001,220,953-
Total Assets$2,956,573$5,303,028$5,239,459
Liabilities
Accounts and contracts payable$81,799$-$8,922
Escrows payable148,906--
Advances from other funds---
Accrued salaries payable20,623--
Total Liabilities251,328-8,922
Deferred Inflows of Resources
Unavailable revenue - property taxes35,816--
Unavailable revenue - special assessments51,5041,095,000377,001
Unavailable revenue - notes/intergovernmental-950,929-
Total Deferred Inflows of Resources87,3202,045,929377,001
Fund Balances
Nonspendable140,151--
Restricted-3,257,099-
Committed ---
Assigned--4,853,536
Unassigned2,477,774--
Total Fund Balances2,617,9253,257,0994,853,536
Total Liabilities, Deferred Inflows
of Resources and Fund Balances$2,956,573$5,303,028$5,239,459
The notes to the financial statements are an integral part of this statement.
42
OtherTotal
GovernmentalGovernmental
FundsFunds
$284,606$9,151,389
-47,232
-31,007
-1,523,505
-54,443
-950,929
-426,664
-237,393
-89,151
-1,271,953
$284,606$13,783,666
$-$90,721
-148,906
426,664426,664
-20,623
426,664686,914
-35,816
-1,523,505
-950,929
-2,510,250
-140,151
130,1923,387,291
152,836152,836
-4,853,536
(425,086)2,052,688
(142,058)10,586,502
$284,606$13,783,666
The notes to the financial statements are an integral part of this statement.
43
44
City of Albertville, Minnesota
Reconciliation of the Balance Sheet
to the Statement of Net Position
December 31, 2019
Amounts reported for the governmental activities in the statement of net position are different because
Total Fund Balances - Governmental$10,586,502
Governmental funds do not report an asset for equity interest in the joint venture224,137
Capital assets used in governmental activities are not financial
resources and therefore are not reported as assets in governmental funds.
Cost of capital assets47,589,323
Less: accumulated depreciation(24,300,651)
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(177,345)
Bond principal payable(5,967,076)
Pension liability(658,839)
Deferred outflows of resources, loss on refunding bond191,196
Some receivables are not available soon enough to pay for the current period's expenditures,
and therefore are deferred in the funds.
Special assessments1,523,505
Taxes35,816
Notes/intergovernmental950,929
Governmental funds do not report long-term amounts related to pension.
Deferred outflows of pension resources352,508
Deferred inflows of pension resources(314,144)
Net pension asset199,859
Governmental funds do not report a liability for accrued interest until due and payable.(34,292)
Total Net Position - Governmental Activities$30,201,428
The notes to the financial statements are an integral part of this statement.
45
City of Albertville, Minnesota
Statement of Revenues, Expenditures and
Changes in Fund Balances
Governmental Funds
For the Year Ended December 31, 2019
Capital Projects
Capital
DebtOutlay
GeneralServiceReserve
Revenues
Taxes$2,071,798$561,855$1,367,473
Licenses and permits215,108--
Intergovernmental260,892-177,143
Charges for services1,004,236--
Fines and forfeitures500--
Special assessments18,280224,52516,982
Interest on investments94,59085,110199,219
Miscellaneous22,39485,86730,510
Total Revenues3,687,798957,3571,791,327
Expenditures
Current
General government753,403--
Public safety1,557,191--
Public works390,47946,886-
Culture and recreation748,116--
Economic development6,994--
Capital outlay
General government--165,954
Public safety--1,685,562
Public works--1,274,646
Culture and recreation--163,436
Economic development--45,156
Debt service
Principal-939,000-
Interest and other-123,556-
Total Expenditures3,456,1831,109,4423,334,754
Excess (Deficiency) of Revenues
Over (Under) Expenditures231,615(152,085)(1,543,427)
Other Financing Sources (Uses)
Transfers in---
Sale of capital assets--6,119
Transfers out---
Total Other Financing Sources (Uses)--6,119
Net Change in Fund Balances231,615(152,085)(1,537,308)
Fund Balances, January 12,386,3103,409,1846,390,844
Fund Balances, December 31$2,617,925$3,257,099$4,853,536
The notes to the financial statements are an integral part of this statement.
46
OtherTotal
GovernmentalGovernmental
FundsFunds
$232,684$4,233,810
-215,108
-438,035
-1,004,236
-500
-259,787
5,420384,339
-138,771
238,1046,674,586
37,847791,250
-1,557,191
-437,365
-748,116
171,513178,507
-165,954
-1,685,562
-1,274,646
45,771209,207
-45,156
-939,000
41,461165,017
296,5928,196,971
(58,488)(1,522,385)
151,390151,390
-6,119
(151,390)(151,390)
-6,119
(58,488)(1,516,266)
(83,570)12,102,768
$(142,058)$10,586,502
The notes to the financial statements are an integral part of this statement.
47
City of Albertville, Minnesota
Reconciliation of the Statement of Revenues, Expenditures and
Changes in Fund Balances to the Statement of Activities
Governmental Funds
For the Year Ended December 31, 2019
Amounts reported for governmental activities in the statement of activities are different because
Total Change Is Fund Balances$(1,516,266)
Governmental funds do not report income or loss in a joint venture.(240,546)
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 outlays2,841,587
Depreciation expense(788,312)
Book value of assets sold(55,240)
Gain on assets sold190,000
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 repayments939,000
Amortization of loss on refunding and premium(32,944)
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.6,003
Long-term pension activity is not reported in governmental funds.
Pension expense(60,818)
Pension revenue2,527
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(33,515)
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 (62,630)
Taxes4,762
Intergovernmental(123,147)
Change in Net Position - Governmental Activities$1,070,461
The notes to the financial statements are an integral part of this statement.
48
City of Albertville, Minnesota
Statement of Revenues, Expenditures and
Changes in Fund Balances - Budget and Actual
General Fund
For the Year Ended December 31, 2019
General
Budgeted Amounts
ActualVariance with
OriginalFinalAmountsFinal Budget
Revenues
Taxes$2,075,403$2,075,403$2,071,798$(3,605)
Licenses and permits161,776161,776215,10853,332
Intergovernmental228,515228,515260,89232,377
Charges for services623,963623,9631,004,236380,273
Fines and forfeitures--500500
Special assessments--18,28018,280
Interest on investments25,00025,00094,59069,590
Miscellaneous15,00015,00022,3947,394
Total Revenues3,129,6573,129,6573,687,798558,141
Expenditures
Current
General government756,310756,310753,4032,907
Public safety1,489,6181,489,6181,557,191(67,573)
Public works449,272449,272390,47958,793
Culture and recreation428,457428,457748,116(319,659)
Economic development6,0006,0006,994(994)
Total Expenditures3,129,6573,129,6573,456,183(326,526)
Net Change in Fund Balances--
231,615231,615
Fund Balances, January 12,386,3102,386,3102,386,310-
Fund Balances, December 31$2,386,310$2,386,310$2,617,925$231,615
The notes to the financial statements are an integral part of this statement.
49
City of Albertville, Minnesota
Statement of Net Position
Proprietary Funds
December 31, 2019
Business-type Activities - Enterprise Funds
SewerWaterStorm WaterRecyclingTotal
Assets
Current Assets
Cash and temporary investments$6,815,575$1,632,755$1,228,019$ 69,285$9,745,634
Restricted cash 1,760,693 - - - 1,760,693
Receivables
Accounts 84,597 89,373 19,046 1,484 194,500
Special assessments, current portion 9,397 8,534 5,666 644 24,241
Due from other governments 391,688 12 - 2,211 393,911
Prepaid items 20,244 5,994 1,707 - 27,945
Total Current Assets 9,082,194 1,736,668 1,254,438 73,62412,146,924
Noncurrent Assets
Special assessments, net of current portion 60,622 11,431 8,941 - 80,994
Notes, net of current portion - - 32,144 - 32,144
Capital Assets
Land 205,722 - 146,112 - 351,834
Buildings 4,706,359 13,330 - - 4,719,689
Infrastructure 8,975,437 1,401,010 1,509,297 -11,885,744
Machinery and equipment 184,305 134,193 - - 318,498
Vehicles 186,363 216,921 69,177 - 472,461
Construction in progress 6,590,589 - - - 6,590,589
Less: Accumulated depreciation(6,124,407) (733,227) (344,034) -(7,201,668)
Net Capital Assets14,724,368 1,032,227 1,380,552 -17,137,147
Total Noncurrent Assets14,784,990 1,043,658 1,421,637 -17,250,285
Total Assets23,867,184 2,780,326 2,676,075 73,62429,397,209
Deferred Outflows of Resources
Deferred pension resources 16,407 22,257 12,488 - 51,152
Liabilities
Current Liabilities
Accounts and contracts payable 786,499 59,185 1,680 8,892 856,256
Due to other governments - 56,342 - - 56,342
Accrued interest payable 45,638 985 2,625 - 49,248
Accrued salaries payable 3,659 5,216 2,980 - 11,855
Compensated absences payable, current portion 27,728 27,728 6,162 - 61,618
Bonds payable, current portion 575,900 9,100 75,000 - 660,000
Total Current Liabilities 1,439,424 158,556 88,447 8,892 1,695,319
Noncurrent Liabilities
Compensated absences payable 9,243 9,243 2,054 - 20,540
Bonds payable 7,011,926 59,800 243,923 - 7,315,649
Pension liability 104,913 142,335 79,860 - 327,108
Total Noncurrent Liabilities 7,126,082 211,378 325,837 - 7,663,297
Total Liabilities 8,565,506 369,934 414,284 8,892 9,358,616
Deferred Inflows of Resources
Deferred pension resources 21,009 28,503 15,991 - 65,503
Net Position
Net investment in capital assets 8,897,235 963,327 1,061,629 -10,922,191
Unrestricted 6,399,841 1,440,819 1,196,659 64,732 9,102,051
Total Net Position$15,297,076$2,404,146$2,258,288$ 64,732$20,024,242
The notes to the financial statements are an integral part of this statement.
50
City of Albertville, Minnesota
Statement of Revenues, Expenses and
Changes in Net Position
Proprietary Funds
For the Year Ended December 31, 2019
Business-type Activities - Enterprise funds
SewerWaterStorm WaterRecyclingTotal
Operating Revenues
Charges for services$ 865,037$ 335,066$ 209,020$ 105,028$ 1,514,151
Operating Expenses
Personal services 281,928 204,141 144,676 10,790 641,535
Supplies 31,630 22,734 90 143 54,597
Professional services 31,078 30,135 43,845 2,372 107,430
Utilities 77,771 47,162 - - 124,933
Insurance 14,102 7,051 1,410 - 22,563
Repairs and maintenance 77,872 45,384 4,301 - 127,557
Remittance to Joint Powers Board - 299 - - 299
Depreciation 342,561 57,089 48,208 - 447,858
Other charges 51,206 34,866 4,978 105,054 196,104
Total Operating Expenses 908,148 448,861 247,508 118,359 1,722,876
Operating Income (Loss) (43,111) (113,795) (38,488) (13,331) (208,725)
Nonoperating Revenues (Expenses)
Interest income 233,755 60,326 49,465 2,625 346,171
Intergovernmental - - - 12,960 12,960
Bond issuance costs (124,383) - - - (124,383)
Interest expense and other (70,388) (2,385) (5,119) - (77,892)
Other income 11,021 13,244 186 - 24,451
Total Nonoperating
Revenues (Expenses) 50,005 71,185 44,532 15,585 181,307
Income (Loss) Before
Contributions 6,894 (42,610) 6,044 2,254 (27,418)
Contributions
Capital contributions 1,488,937 25,772 1,109 - 1,515,818
Change in Net Position 1,495,831 (16,838) 7,153 2,254 1,488,400
Net Position, January 1 13,801,245 2,420,984 2,251,135 62,478 18,535,842
Net Position, December 31$15,297,076$ 2,404,146$ 2,258,288$ 64,732$20,024,242
The notes to the financial statements are an integral part of this statement.
51
City of Albertville, Minnesota
Statement of Cash Flows
Proprietary Funds
For the Year Ended December 31, 2019
Business-type Activities - Enterprise funds
SewerWaterStorm WaterRecyclingTotals
Cash Flows from Operating Activities
Receipts from customers and users$859,704$319,727$209,539$103,271$1,492,241
Other receipts and payments, net 11,021 13,244 10,900 - 35,165
Payments to suppliers (261,401) (88,127) (53,726) (98,728) (501,982)
Payments to employees (286,346) (213,316) (150,896) (10,790) (661,348)
Net Cash Provided (Used) by
Operating Activities 322,978 31,528 15,817 (6,247) 364,076
Cash Flows from Noncapital Financing Activities
Intergovernmental receipts - - - 13,348 13,348
Cash Flows from Capital and
Related Financing Activities
Acquisition of capital assets(5,320,392) (5,232) - -(5,325,624)
Capital contributions 1,101,663 27,285 5,876 - 1,134,824
Debt issuance proceeds 5,729,278 - - - 5,729,278
Interest paid on bonds (37,421) (2,485) (7,050) - (46,956)
Principal paid on bonds (270,900) (9,100) (75,000) - (355,000)
Net Cash Provided (Used) by
Capital and Related Financing Activities 1,202,228 10,468 (76,174) - 1,136,522
Cash Flows from Investing Activities
Interest received on investments 233,755 60,326 49,465 2,625 346,171
Net Increase (Decrease) in
Cash and Cash Equivalents 1,758,961 102,322 (10,892) 9,726 1,860,117
Cash and Cash Equivalents, January 1 6,817,307 1,530,433 1,238,911 59,559 9,646,210
Cash and Cash Equivalents, December 31$8,576,268$1,632,755$1,228,019$ 69,285$11,506,327
Reconciliation of Cash and Cash Equivalents to
the Statement of Net Position
Cash and temporary investments$6,815,575$1,632,755$1,228,019$ 69,285$9,745,634
Restricted cash 1,760,693 - - - 1,760,693
Statement of Net Position
Cash and Cash Equivalents$8,576,268$1,632,755$1,228,019$ 69,285$11,506,327
The notes to the financial statements are an integral part of this statement.
52
City of Albertville, Minnesota
Statement of Cash Flows (Continued)
Proprietary Funds
For the Year Ended December 31, 2019
Business-type Activities - Enterprise funds
SewerWaterStorm WaterRecyclingTotals
Reconciliation of Operating Income (Loss) to
Net Cash Provided (Used) by Operating Activities
Operating income (loss)$(43,111)$(113,795)$(38,488)$ (13,331)$(208,725)
Adjustments to reconcile operating income (loss) to
net cash provided (used) by operating activities
Other income related to operations 11,021 13,244 186 - 24,451
Depreciation 342,561 57,089 48,208 - 447,858
(Increase) decrease in assets/deferred outflows of resources
Accounts receivable (3,144) (12,300) 631 (1,484) (16,297)
Prepaids (1,306) (169) (93) - (1,568)
Due from other governments - 80,118 - - 80,118
Special assessments receivable (2,189) (3,039) (112) (273) (5,613)
Note receivable - - 10,714 - 10,714
Deferred pension resources 2,492 3,793 2,190 - 8,475
Increase (decrease) in liabilities/deferred inflows of resources
Accounts payable 23,564 11,932 991 8,841 45,328
Due to other governments - 7,623 - - 7,623
Accrued salaries payable 756 1,134 663 - 2,553
4,689
Compensated absences payable 2,110 2,110 469 -
Pension liability (1,055) (3,734) (2,444) - (7,233)
Deferred pension resources (8,721) (12,478) (7,098) - (28,297)
Net Cash Provided (Used) by
Operating Activities$322,978$ 31,528$ 15,817$ (6,247)$364,076
Schedule of Noncash Capital and
Financing Activities
Capital contributions$391,688$ -$ -$ -$391,688
Capital assets purchased on account$753,670$ -$ -$ -$753,670
Premium on bonds issued$133,661$ -$ -$ -$133,661
Amortization of bond premiums$ 7,053$ -$ 1,306$ -$ 8,359
The notes to the financial statements are an integral part of this statement.
53
City of Albertville, Minnesota
Statement of Fiduciary Net Position
Fiduciary Funds
December 31, 2019
Custodial
Funds
Assets
Cash and temporary investments$283,976
Accounts receivable150,422
Inventory4,351
Total Assets438,749
Liabilities
Accounts payable21,163
Accrued wages6,624
Total Liabilities27,787
Net Position
Restricted for organizations and other governments$410,962
The notes to the financial statements are an integral part of this statement.
54
City of Albertville, Minnesota
Statement of Changes in Fiduciary Net Position
For the Year Ended December 31, 2019
Custodial
Funds
Additions
Contributions
Charges for services$604,084
Donations 88,600
Concessions 78,242
Total Contributions770,926
Investment earnings
Interest, dividends and other8,356
Miscellaneous261,043
Total Additions1,040,325
Deductions
Professional services322,947
Supplies 35,733
Utilities 213,122
Insurance 20,602
Repairs and Maintenance37,324
Capital Outlay 206,169
Miscellaneous273,889
Total Deductions1,109,786
(69,461)
Net Increase (Decrease) in Fiduciary Net Position
480,423
Net Position, January 1
$410,962
Net Position, December 31
The notes to the financial statements are an integral part of this statement.
55
56
City of Albertville, Minnesota
Notes to the Financial Statements
December 31, 2019
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 Minnesotastatutes.Under this plan, the government of the City is directed 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. TheCity Council appoints personnel responsible for the proper administration of allaffairs 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 bemisleading or incomplete.The Governmental Accounting Standards Board (GASB) has set forth criteria
to be considered in determining financialaccountability. 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 aremembers 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 Fund Financial 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 separately from business-type activities, which rely to a significant extent
on fees and charges for support.
The statement of activities demonstrates the degree to which the direct expenses of a given function or segment are
offset by program revenues. Direct expenses are those that are clearly identifiable with a specific function or segment.
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 as general 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.MeasurementFocus, Basis of Accounting andFinancial 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.Grantsand 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 endof 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.
57
City of Albertville, Minnesota
Notes to the Financial Statements
December 31, 2019
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 whichthe 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 alsobe 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 theCity’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.
58
City of Albertville, Minnesota
Notes to the Financial Statements
December 31, 2019
Note 1:Summary of Significant Accounting Policies (Continued)
The City reports the following major proprietary funds:
The Sewerfundaccounts for the activities of theCity’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 activities of the City’s recycling operations.
Additionally, the City reports the following fund types:
Fiduciary Funds
rust funds, or private-purpose trust funds. The City’s Custodial fund
accounts for activities of St.Michael-Albertville Ice Arena, Albertville Lions, and Friendly City Days.
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.
59
City of Albertville, Minnesota
Notes to the Financial Statements
December 31, 2019
Note 1:Summary of Significant Accounting Policies (Continued)
D.Assets, Deferred Outflows of Resources, Liabilities, Deferred Inflows ofResourcesand Net Position/Fund
Balances
Deposits and Investments
The City’s cash and cash equivalents are considered to be cash on hand, demand deposits and short-term investments
with original maturities of three months or less from the date of acquisition.The proprietary funds’ portion in the
government-wide cash and temporary investments pool is considered to be cash andcash 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 andother
authorized investments. Earnings from such investments are allocated on the basis of applicable participation by each of
the funds.
The City may also invest idle funds as authorized by Minnesota statutes, as follows:
1.Direct obligations or obligations guaranteed by the United States or its agencies.
2.Shares of investment companies registered under the Federal Investment Company Act of 1940 and 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 an original maturitynot 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 eligible for 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.
Broker money market funds operate in accordance with appropriate state laws and regulations. The reported value of the
pool is the same as the fair value of the shares.
The City categorizes its fair value measurements within the fair value hierarchy established by generally accepted
accounting principles. The hierarchy is based on the valuation inputs used to measure the fair value of the asset. Level 1
inputs are quoted prices in active markets for identical assets; Level 2 inputs are significant other observable inputs; Level
3 inputs are significant unobservable inputs.
60
City of Albertville, Minnesota
Notes to the Financial Statements
December 31, 2019
Note 1:Summary of Significant Accounting Policies (Continued)
The City has the following recurring fair value measurements as of December 31, 2019:
Brokered Certificates of Depositof $5,336,336are valued using quoted market prices (Level 2inputs)
Mortgage Backed Securitiesof $549,525are values using a matrix pricing model (Level 2 inputs)
Municipal Bonds of $4,013,027are values using a matrix pricing model (Level2 inputs)
The Minnesota Municipal Money Market Fund is regulated by Minnesota statutes and the Board of Directors of the
League of Minnesota Cities and is an external investment pool not registered with the Securities Exchange Commission
(SEC) that follows the regulatory rules of the SEC. In accordance with GASB Statement No. 79, the City’s investment in
this pool is valued at amortized cost, which approximates fair value. There are no restrictions or limitations on
withdrawalsfrom the 4M Liquid Asset Fund. Investments in the 4M Plus must be deposited for a minimum of 14 calendar
days. Withdrawals prior to the 14-day restriction period will be subject to a penalty equal to seven days interest on the
amount withdrawn. Seven days' notice of redemption is required for withdrawals of investments in the 4M Term Series
withdrawn prior to the maturity date of that series. A penalty could be assessed as necessary to recoup the Series for any
charges, losses, and other costs attributable to the early redemption. Financial statements of the 4M Fund can be
obtained by contracting RBC Global Management at 100 South Fifth Street, Suite 2300, Minneapolis, MN 55402-1240.
Investment Policy
The City’s investment policy incorporates Minnesota statutes as described abovewhich reduces the City’s exposure to
credit, custodial credit and interest rate risks. Specific risk information for the City is as follows:
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 above.
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, 2019. However, each investment
brokerage firm may have a limit to 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.
Concentration of Credit Risk. Concentration of credit risk is the risk ofloss 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 aspecific maturity, a
specific issuer or a specific class of securities.The maturities selected shall provide for 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.
61
City of Albertville, Minnesota
Notes to the Financial Statements
December 31, 2019
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,sewer and storm water accounts to the County for collection in the following
year. Therefore, there has been no allowance for doubtful accounts established.
SpecialAssessments
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.
Notes Receivable
Notes receivable include amounts paid by or loaned by the City that will be paid back by other entities.
Inventories
Inventories held for resale are stated at the lower of cost or market on the first-in, first-out (FIFO) methodand inventories
of supplies are reported at cost. Inventories in governmental funds are recorded as expenditures when consumed rather
than when purchased.
62
City of Albertville, Minnesota
Notes to the Financial Statements
December 31, 2019
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 anestimateduseful 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 reportedin 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 itemsdating 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
lifebeyond the original estimate. In the case of donations, the City values these capital assets at the acquisitionvalue 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
63
City of Albertville, Minnesota
Notes to the Financial Statements
December 31, 2019
Note 1:Summary of Significant Accounting Policies (Continued)
DeferredOutflows of Resources
In addition to assets, the statement of netposition 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, deferred outflows/inflows of resources, and pension expense,
information about the fiduciary net position of the Public Employees Retirement Association (PERA) and additions
to/deductions from PERA’s fiduciary net position have been determined on the same basis as they are reported by PERA
except 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. The General fund is typically used to liquidate the governmental net pension
liability. For purposes of measuring the net pension liability (asset) and deferred outflows of resources related to pensions,
and pension expense, information about the fiduciary net position of the defined benefit plan administered by the
Albertville Firefighter’s Relief Association and additions to and deductions from the plan’s fiduciary net position have been
determined on the same basis as they are reported by the plan. Investments are reported at fair value.
The total pension expense for the GERP, PEPFP and the AlbertvilleFire Relief Association is as follows:
Total
GERPPEPFPFRAPension Expense
Pension Expense
$125,276$39,905$73,800$238,981
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.The General fund is typically used to liquidate the governmental compensated absences
liability.
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 debt proceeds received, are
reported as debt service expenditures.
64
City of Albertville, Minnesota
Notes to the Financial Statements
December 31, 2019
Note 1:Summary of Significant Accounting Policies (Continued)
Deferred Inflows of Resources
In addition toliabilities, the statement of netposition 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 netposition 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/intergovernmental 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 levelof 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 spentfirst 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 afund 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.
65
City of Albertville, Minnesota
Notes to the Financial Statements
December 31, 2019
Note 1:Summary of Significant Accounting Policies (Continued)
Net Position
Net position represents the difference between assets anddeferred outflows of resources and liabilities anddeferred
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”.
When both restricted and unrestricted resources are available for use, it is the City’s policy touse restricted resources
first, then unrestricted resources as they are needed.
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 30, the proposed budget is presented to the City Council for review. The City
Council holds public hearings and a final budget is prepared and adopted in early December.
The appropriated budget is prepared by fund, function and department. The City’s department heads, with the approval of
the City Administrator, may make transfers of appropriations within a department.Transfers of appropriations between
departments require the approval of the City Council. The legal level of budgetary control is the department level.
Budgeted amounts are as originally adopted by the City Council. There wereno budget amendments made in 2019.
B.Deficit Fund Equity
The following funds had deficit fund balances as of December 31, 2019:
Fund
Amount
Nonmajor
TIF #17 Old Castle$419,931
TIF #16 Mold Tech5,155
The deficit fund balances will be eliminated withtransfers from other fundsand future tax increment.
66
City of Albertville, Minnesota
Notes to the Financial Statements
December 31, 2019
Note 2:Stewardship, Compliance and Accountability
C.Excess of Expenditures over Appropriations
For the year ended December 31, 2019expenditures exceed appropriations in the following fund:
Excess of
Expenditures
FinalOver
FundBudgetActualAppropriations
General$3,129,657$3,456,183$326,526
The excess of expenditures over appropriations was funded by revenues in excess of budget.
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 withMinnesota 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 or bonds, withthe exception of
irrevocable standby letters of credit issued by Federal Home Loan Banks as this type of collateral only requires collateral
pledged equal to 100 percent of the deposits not covered by insurance or bonds.
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 powersmay 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 safekeepingin 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.
67
City of Albertville, Minnesota
Notes to the Financial Statements
December 31, 2019
Note 3:Detailed Notes on All Funds (Continued)
At year end, the City’s carrying amount of deposits was $2,552,951and the bank balance was $2,598,818. Of the bank
balance, $500,000 as covered by federal depository insurance and the remainingwas covered by collateral held by the
City’s agent in the City’s name.
Investments
As of December 31, 2019, the City had the following investments:
CreditSegmented
Fair Value Measurement Using
Quality/Time
Types of Investments
Ratings (1)Distribution (2)AmountsLevel 1Level 2Level 3
Pooled Investments at Amortized Costs
4M FundN/Aless than 6 months$3,355,406
Broker Money Market FundsN/Aless than 6 months5,133,599
Non-pooled Investments at Fair Value
Brokered Certificates of DepositN/ALess than 1 year791,248$-$791,248$-
Brokered Certificates of DepositN/A1 to 5 years4,298,931-4,298,931-
Brokered Certificates of DepositN/AMore than 5 years246,157-246,157-
Mortgage Backed SecuritiesAA+1 to 5 years549,525-549,525-
AAA
Municipal Bonds1 to 5 years795,819-795,819-
AAA
Municipal BondsMore than 5 years308,736-308,736-
AA+
Municipal BondsLess than 1 year224,881-224,881-
AA
Municipal BondsLess than 1 year401,838-401,838-
AA
Municipal Bonds1 to 5 years1,834,655-1,834,655-
AA
Municipal BondsMore than 5 years193,820-193,820-
AA-
Municipal BondsLess than 1 year92,462-92,462-
A+
Municipal Bonds1 to 5 years160,816-160,816-
Total Investments$ 18,387,893$-$9,898,888$-
(1) Ratings are provided by various credit rating agencies where applicable to indicate associated credit risk.
(2) Interest rate risk is disclosed using the segmented time distribution method.
N/A Indicates not applicable or available.
Cash and Investments Summary
Areconciliation of cash and temporary investments as shown on the financial statements for the City follows:
Carrying Amount of Deposits$2,552,951
Investments18,387,893
Cash on Hand849
Total$20,941,692
Cash and Investments
Statement of net position
Cash and temporary investments$18,897,023
Restricted Cash1,760,693
Statement of Fiduciary net position283,976
Total$20,941,692
68
City of Albertville, Minnesota
Notes to the Financial Statements
December 31, 2019
Note 3:Detailed Notes on All Funds (Continued)
B.Capital Assets
Capital asset activityfor the year ended December 31, 2019 was as follows:
BeginningEnding
BalanceIncreasesDecreasesBalance
Governmental Activities
Capital Assets not Being Depreciated
Land$3,849,800$133,492$-$3,983,292
Construction in progress194,496126,056(320,552) -
Total Capital Assets not Being Depreciated4,044,296259,548(320,552)3,983,292
Capital Assets Being Depreciated
Buildings6,543,862 - -6,543,862
Infrastructure29,606,038989,811 -30,595,849
Land improvements2,768,857 - -2,768,857
Machinery and equipment787,758398,512 -1,186,270
Vehicles1,690,4851,704,269(883,561)2,511,193
Total Capital Assets Being Depreciated41,397,0003,092,592(883,561)43,606,031
Less Accumulated Depreciation for
Buildings(2,137,331)(160,347) -(2,297,678)
Infrastructure(19,061,908)(282,993) -(19,344,901)
Land improvements(1,287,350)(125,604) -(1,412,954)
Machinery and equipment(329,767)(94,574) -(424,341)
Vehicles(1,524,304)(124,794)828,321(820,777)
Total Accumulated Depreciation(24,340,660)(788,312)828,321(24,300,651)
Total Capital Assets Being Depreciated, Net17,056,3402,304,280(55,240)19,305,380
Governmental Activities Capital Assets, Net$21,100,636$2,563,828$(375,792)$23,288,672
69
City of Albertville, Minnesota
Notes to the Financial Statements
December 31, 2019
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 progress548,1326,042,457-6,590,589
Total Capital Assets not Being Depreciated899,9666,042,457-6,942,423
Capital Assets Being Depreciated
Buildings4,719,693--4,719,693
Infrastructure11,885,741--11,885,741
Machinery and equipment308,03310,464-318,497
Vehicles472,461--472,461
Total Capital Assets Being Depreciated17,385,92810,464-17,396,392
Less Accumulated Depreciation for
Buildings(1,523,523)(117,992)-(1,641,515)
Infrastructure(4,611,265)(263,827)-(4,875,092)
Machinery and equipment(250,141)(26,460)-(276,601)
Vehicles(368,881)(39,579)-(408,460)
Total Accumulated Depreciation(6,753,810)(447,858)-(7,201,668)
Total Capital Assets Being Depreciated, Net10,632,118(437,394)-10,194,724
Business-type Activities Capital Assets, Net$11,532,084$5,605,063$-$17,137,147
Depreciation expense was chargedto functions/programs of the City as follows:
Governmental Activities
General government$51,353
Public safety138,081
Public works487,961
Culture and recreation110,917
Total Depreciation Expense - Governmental Activities$788,312
Business-type Activities
Sewer$342,561
Water57,089
Storm water48,208
Total Depreciation Expense - Business-type Activities$447,858
70
City of Albertville, Minnesota
Notes to the Financial Statements
December 31, 2019
Note 3:Detailed Notes on All Funds (Continued)
C.Advances to/from otherFundsand Transfers
The composition of interfund balances as of December 31, 2019is as follows:
Receivable FundPayable Fund
Amount
Debt ServiceOther Governmental Funds$426,664
The above fundsadvanced the abovebalancesto eliminate their deficit cash balancesand finance capital projects.
Interest is chargedat4 percent interest rate.
InterfundTransfers
The composition of interfund transfers for the year ending December 31, 2019is as follows:
Transfers Out
Other
Governmental
Fund
FundsTotal
Transfer Out
Other Governmental Funds$151,390$151,390
The transfer was made to close out the revolving loan fundinto the Economic Developer Loan Fund.
D.Long-term Debt
GeneralObligation 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 of the City.
71
City of Albertville, Minnesota
Notes to the Financial Statements
December 31, 2019
Note 3:Detailed Notes on All Funds (Continued)
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 2011C$1,825,000$1,825,0002.00 - 3.35%08/25/1102/01/25860,000$
G.O. Improvement Refunding
Bonds, Series 2012A2,310,0002,310,0001.00 - 2.0004/10/1202/01/231,515,000
G.O. Improvement
Refunding Bonds,
Series 2012B3,215,0003,215,0000.50 - 2.3505/10/1212/01/251,460,000
General Obligation Improvement
Note, Series 20124,113,7003,278,5511.27703/23/1208/20/322,409,000
Total G.O. Special Assessment Bonds and Improvement Notes$6,244,000
Annual debt servicerequirements to maturity for general obligation special assessment bonds are as follows:
Governmental ActivitiesBusiness-type Activities
Year Ending
December 31,PrincipalInterestTotalPrincipalInterestTotal
2020$856,000$105,667$961,667$75,000$5,550$80,550
2021864,00089,561953,56175,0004,05079,050
2022876,00072,587948,58780,0002,50082,500
2023813,00055,649868,64985,00085085,850
2024581,00041,047622,047---
2025 - 20291,347,00082,5781,429,578---
2030 - 2032592,00015,182607,182---
Total$5,929,000$462,271$6,391,271$315,000$12,950$327,950
72
City of Albertville, Minnesota
Notes to the Financial Statements
December 31, 2019
Note 3:Detailed Notes on All Funds (Continued)
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 bythe 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:
Interest
AuthorizedIssueMaturityBalance at
DescriptionRate
and IssuedDateDateYear End
G.O. Utility Revenue
Bonds, Series 2011A$520,0001.10 - 3.70%04/21/1102/01/26$265,000
G.O. Sewer Revenue
Refunding Bonds,
Series 2013A2,515,000.70 - 2.1001/24/1312/01/251,545,000
G.O. Sewer Revenue
Series 2019A5,720,0002.00 - 3.0009/24/1902/01/395,720,000
Total G.O. Revenue Bonds$7,530,000
Annual debt service requirements to maturity for general obligation revenue bonds are as follows:
Business-type Activities
Year Ending
December 31,PrincipalInterest Total
2020$585,000$148,941$733,941
2021510,000156,824666,824
2022520,000145,004665,004
2023540,000132,344672,344
2024550,000118,969668,969
2025 - 20291,685,000419,4002,104,400
2030 - 20341,490,000257,4201,747,420
2035 - 20391,650,00093,5961,743,596
Total$7,530,000$1,472,498$9,002,498
73
City of Albertville, Minnesota
Notes to the Financial Statements
December 31, 2019
Note 3:Detailed Notes on All Funds (Continued)
Changes in Long-term Liabilities
Long-term liability activity for the year ended December 31, 2019was as follows:
BeginningEndingDue Within
BalanceIncreasesDecreasesBalanceOne Year
Governmental Activities
Bonds Payable
G.O. Special
Assessment bonds$6,868,000$-$(939,000)$5,929,000$856,000
Unamortized premium43,370-(5,294)38,076-
Total Bonds Payable6,911,370-(944,294)5,967,076856,000
Compensated
Absences Payable143,83189,192(55,678)177,345133,009
Governmental Activity
Long-term Liabilities$7,055,201$89,192$(999,972)$6,144,421$989,009
Business-type Activities
Bonds Payable
G.O. Revenue bonds$2,090,000$5,720,000$(280,000)$7,530,000$585,000
Unamortized premium118133,661(7,053)126,726-
G.O. Special
Assessment bonds390,000-(75,000)315,00075,000
Unamortized premium5,229-(1,306)3,923-
Total Bonds Payable2,485,3475,853,661(363,359)7,975,649660,000
Compensated
Absences Payable77,46952,793(48,104)82,15861,618
Business-type Activity
Long-term Liabilities$2,562,816$5,906,454$(411,463)$8,057,807$721,618
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.
74
City of Albertville, Minnesota
Notes to the Financial Statements
December 31, 2019
Note 3:Detailed Notes on All Funds (Continued)
E.Components ofFund Balance
At December 31, 2019, 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), policy and/or intent
(Assigned). The following is a summary of the components of fund balance:
Fund
PurposeAmount
Nonspendable
GeneralLand held for resale$51,000
GeneralPrepaid items89,151
Total Nonspendable 140,151
Restricted
Debt ServiceDebt Service3,257,099
Other governmental fundsTax increment financing121,094
Other governmental fundsPark improvements9,098
Total Restricted 3,387,291
Commited
Other governmental fundsRevolving loan152,836
Assigned
Capital Outlay ReserveFuture capital projects4,853,536
Unassigned
General2,477,774
Other governmental funds(425,086)
Total Unassigned 2,052,688
Total$10,586,502
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 Plan(GERP)
All full-time and certain part-time employees of the City are covered by the General Employees Retirement Plan(GERP).
GERF members belong tothe Coordinated Plan. Coordinated Plan members are covered by Social Security.
Public Employees Police and Fire Plan(PEPFP)
The PEPFP, originally established for police officers and firefighters not covered by a local relief association, now covers
all police officers and firefightershired since 1980.Effective July 1, 1999, the PEPFP also covers police officers and
firefighters belonging to a local relief association that elected to merge with and transfer assets and administration to
PERA.
75
City of Albertville,Minnesota
Notes to the Financial Statements
December 31, 2019
Note 4:Defined Benefit Pension Plans - Statewide (Continued)
B.Benefits Provided
PERA provides retirement, disability and death benefits. Benefit provisions are established by statestatute and can only
be modified by the state legislature.
Vested, terminated employees who are entitled to benefits but are not receiving them yet are bound by theprovisions in
effect at the time they last terminated their public service.
GERP Benefits
GERP 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 Plan
members. Members hired prior to July 1, 1989 receive the higher of Method 1 or Method 2 formulas. Only Method 2 is
used for members hired after June 30, 1989. Under Method 1, the accrual rate for Coordinated members is 1.2 percent for
each of the first 10 years of service and 1.7 percent of average salary for each additional year. Under Method 2, the
accrual rate for Coordinated members is 1.7 percent of average salary for all years 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
members hired on or after July 1, 1989 normal retirement age is the age for unreduced Social Security benefits capped at
66.
Benefit increases are provided to benefit recipients each January. Increases are related to the funding ratio of the plan. If
the General Employees Plan is at least 90 percent funded for two consecutive years, benefitrecipients are given a 2.5
percent increase. If the plan has not exceeded 90 percent funded, or have fallen below 80 percent, benefit recipients are
given a one percent increase. A benefit recipient who has been receiving a benefit for at least 12 full months as of
June 30 will receive a full increase. Members receiving benefits for at least one month but less than 12 full months as of
June 30 will receive a pro rata increase.
PEPFP Benefits
Benefits for the PEPFP members first hired after June 30, 2010, but before July 1, 2014vest on a prorated basis from
50percent after five years up to 100 percent after ten years of credited service. Benefits for PEPFP members first hired
after June 30, 2014vest on a proratedbasis from 50 percent after ten years up to 100 percent after twentyyears of
credited service. The annuity accrual rate is 3percent of average salary for each year of service. . A full, unreduced
pension is earned when members are age 55 and vested, or for members who were first hired prior to July 1, 1989, when
age plus years of service equal at least 90.
Annuities, disability benefits and survivor benefits are increased effective every January 1. Beginning January 1, 2019, the
postretirement increase will be fixed at 1 percent. Recipients that have been receiving the annuity or benefit for at least 36
months as of the June 30 before the effective date of the increasewill receive the full increase. For recipients receiving
the annuity or benefit for atleast 25 months but less than 36 months as of theJune 30 before the effective date of the
increase will receive a reduced prorated increase.
C.Contributions
Minnesota statuteschapter 353 sets the rates for employer and employee contributions.Contribution rates can only be
modified by the state Legislature.
General Employees FundContributions
Coordinated Plan members were required to contribute 6.50percent of their annual covered salaryin fiscal year 2019and
the City was required to contribute 7.50 percent for Coordinated Plan members in fiscalyear 2019.The City’s
contributions to the General Employees Fundfor the years ending December 31, 2019,2018and 2017were $90,361,
$77,347and $72,910,respectively. The City’s contributions were equal to the required contributions for each year as set
by statestatute.
76
City of Albertville, Minnesota
Notes to the Financial Statements
December 31, 2019
Note 4:Defined Benefit Pension Plans - Statewide (Continued)
Police and Fire Fund Contributions
Police and Fire member’s contribution rates increased from 10.80 percent of pay to 11.30 percent and employer rates
increased from 16.20 percent to 16.95 percent on January 1, 2019.The City’s contributions to the Police and Fire Fund
for the years ending December 31, 2019,2018and 2017were $17,055,$15,197and $14,820respectively. The City’s
contributions were equal to the required contributions for each year as set by statestatute.
D.PensionCosts
General Employees FundPension Costs
At December 31, 2019, the City reported a liability of $890,133 for its proportionate share of theGeneral Employees
Fund’s net pension liability. The City’s net pension liability reflected a reduction due to the State of Minnesota’s
contribution of $16 million to the fund in 2016. The State of Minnesota is considered a non-employer contributing entity
and the state’s contribution meets the definition of a special funding situation. The State of Minnesota’s proportionate
share of the net pension liability associated with the City totaled $27,665 . The net pension liability was measured as of
June 30, 2019, 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 proportionate share of the netpension liability was based on the City’s contributions
received by PERA during the measurement period for employer payroll paid dates from July 1, 2018through
June 30, 2019relative to the total employer contributions received from all of PERA’s participating employers. At
June 30, 2019, the City’s proportionate share was 0.0161 percent which was an increaseof 0.0014 percentdecrease
from its proportion measured as of June 30, 2018.
City's Proportianate Share of the Net Pension Liability$890,133
State of Minnesota's Proportionate Share of the Net Pension
Liability Associated with the City27,665
Total$917,798
For the year ended December 31, 2019, the City recognizedapension expense of $123,204for its proportionate share of
the General Employees Fund’s pension expense. In addition, the City recognized an additional$2,072as pension
expense (and grant revenue) for its proportionate share of the State of Minnesota’s contribution of $16 million to the
General Employees Fund.
At December 31, 2019, the City reported its proportionate share of General Employees Fund’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$24,996$10,042
Changes in Actuarial Assumptions3,53670,960
Net Difference Between Projected and
Actual Earnings on Plan Investments-78,264
Changes in Proportion65,33718,980
Contributions to PERA Subsequent
to the Measurement Date45,320-
Total$139,189$178,246
77
City of Albertville, Minnesota
Notes to the Financial Statements
December 31, 2019
Note 4:Defined Benefit Pension Plans - Statewide (Continued)
The$45,320reported as deferred outflows of resourcesrelated 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 in the year ended
December 31, 2020.Other amounts reported as deferred outflows and inflows of resources related to GERF pensions will
be recognized in pension expense as follows:
2020
$(37,711)
2021
(55,597)
2022
7,497
2023
1,434
Police and Fire FundPension Costs
At December 31, 2019, the City reported a liability of $95,814for its proportionate share of thePolice and Fire Fund’snet
pension liability.The net pension liability was measured as of June 30, 2019, 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 proportionate share
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, 2018through June 30, 2019relative to the total employer contributions received
from all of PERA’s participating employers.At June 30, 2019, the City’s proportionate share was 0.0090percent which
was an increaseof 0.0002from its proportionate share measuredas of June 30, 2018.
For the year ended December 31, 2019, the City recognized pension expense of $38,690for its proportionate shareof the
Police and Fire Plan’s pension expense. The City also recognized of $1,215for the year ended December 31, 2019, as
revenue and an offsetting reduction of net pension liability for its proportionate share of the State of Minnesota’s on-behalf
contributions to the Police and Fire Fund. Legislation passed in 2013 required the State of Minnesota to begin contributing
$9 million to the Police and Fire Fund each year until the plan is 90 percent funded or until the State Patrol Plan
(administered by the Minnesota State Retirement System) is 90 percent funded, whichever occurs later. In addition, the
state will pay $4.5 million on October 1, 2018 and October 1, 2019 in direct state aid. Thereafter, by October 1 of each
year, the state will pay$9 million until full funding is reached or July 1, 2048, whichever is earlier.
At December 31, 2019, the City reported its proportionate share of Police and Fire Plan’s deferred outflows of resources
anddeferred 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$4,071$14,717
Changes in Actuarial Assumptions79,467107,722
Net Difference Between Projected and
Actual Earnings on Plan Investments-19,737
Changes in Proportion22,9512,448
Contributions to PERA Subsequent
to the Measurement Date8,875-
Total$115,364$144,624
78
City of Albertville, Minnesota
Notes to the Financial Statements
December 31, 2019
Note 4:Defined Benefit Pension Plans - Statewide (Continued)
The$8,875reported as deferred outflows of resources related to pensions resulting from the City’s contributions
subsequent to the measurement date will be recognized as a reduction of the net pension liability in the year ended
December 31, 2020. Other amounts reported as deferred outflows and inflows of resources related topensions will be
recognized in pension expense as follows:
2020
$13,563
2021
(13,682)
2022
(38,121)
2023
(381)
2024
486
E.Actuarial Assumptions
The total pension liability in the June 30, 2019 actuarial valuation was determined usingan individual entry-age normal
actuarial cost method and the following actuarial assumptions:
Inflation2.50%
Active Member Payroll Growth3.25% per year
Investment Rate of Return7.50%
Salary increases were basedon a service-related table. Mortality rates for active members, retirees, survivors and
disabilitants were based on RP-2014 tables for males or females, as appropriate, with slight adjustments to fit PERA’s
experience. Cost of living benefit increases after retirement for retirees are assumed to be 1.25 percent per year for
General Employees Planand 1.0 percent per year forPolice and Fire Plan.
Actuarial assumptions used in the June 30, 2019valuation were based on the results of actuarial experience studies. The
most recent four-year experience study in the General Employee Plan was completed in 2019. The most recent four-year
experience study for Police and Fire Planwas completed in 2016. Economic assumptions were updated in 2018 based
on a review of inflation and investment return assumptions.
The following changes in actuarial assumptions and plan provisions occurred in 2019:
General Employees Fund
Changes in Actuarial Assumptions
The mortality projection scale was changed from MP-2017 to MP-2018.
Changes in Plan Provisions
The employer supplemental contribution was changed prospectively, decreasing from $31.0 million to $21.0
million per year. The State’s special funding contribution was changed prospectively, requiring $16.0 million
due per year through 2031.
Police and Fire Fund
Changes in Actuarial Assumptions
The mortality projection scale was changed from MP-2017 to MP-2018.
Changes in Plan Provisions
There have been no changes since the prior valuation.
79
City of Albertville, Minnesota
Notes to the Financial Statements
December 31, 2019
Note 4:Defined Benefit Pension Plans - Statewide (Continued)
The State Board of Investment, which manages the investments of PERA, prepares an analysis of the reasonablenesson
a regular basisof the long-term expected rate of return 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 targetasset allocation
percentages. The target allocation and best estimates of geometricreal rates of return for each majorasset class are
summarized in the following table:
Long-term
TargetExpected Real
AllocationRate of Return
Asset Class
Domestic Equity35.50 %5.10 %
International Equity17.505.30
Fixed Income 20.000.75
Private Markets25.005.90
Cash2.00-
Total100.00 %
F.Discount Rate
The discount rate used to measure the total pension liability in 2019was 7.50 percent. The projection of cash flows used
to determine the discount rate assumed that contributions from plan members and employers will be made at rates set in
Minnesota Statutes. Based on these assumptions, the fiduciary net position of the General Employees Fundand the
Police and Fire Fundwere projected to be available to make all projected future benefit payments of current plan
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
Thefollowing 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 (6.50%)Current (7.50%)Increase (8.50%)
General Employees Fund$1,463,331$890,133$416,844
City's Proportionate Share of NPL
1 Percent1 Percent
Decrease (6.50%)Current (7.50%)Increase (8.50%)
Police and Fire Fund$209,432$95,814$2
H.PensionPlan Fiduciary Net Position
Detailed information about each 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 obtainedon the
Internet at www.mnpera.org.
80
City of Albertville, Minnesota
Notes to the Financial Statements
December 31, 2019
Note 5:Defined Benefit Pension Plans - Fire Relief Association
A.Plan Description
All members of theAlbertville 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, 2018, the plan covered 24active
firefighters and 7 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 fund to accumulate assets to fundthe 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 uponretirement.
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.
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 $93,326in fire state aid to the plan on
behalf of the AlbertvilleFire Department for the year ended December 31, 2018, 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. The firefighter has no obligation to contribute to the plan.
81
City of Albertville, Minnesota
Notes to the Financial Statements
December 31, 2019
Note 5:Defined Benefit Pension Plans - Fire Relief Association (Continued)
D.Pension Costs
At December 31, 2019, the City reported a net pension liability (asset) of ($199,859)for the plan.The net pension asset
was measured as of December 31, 2018. 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, 2018. 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, 2018$591,584$853,232$(261,648)
Changes for the Year
Service cost32,747-32,747
Interest cost31,217-31,217
Assumption changes(9,656)-(9,656)
Plan changes37,505-37,505
Projected investment earnings-44,300(44,300)
Contributions (State)-67,699(67,699)
Asset (gain)/loss(5,308)(85,101)79,793
Administrative costs-(2,182)2,182
Total Net Changes86,50524,71661,789
Ending Balance December 31, 2018$678,089$877,948$(199,859)
For the year ended December 31, 2019, the City recognized apension expense of $73,800.
At December 31, 2019, the City reported deferred inflows of resources and deferred outflows of resources, its
contributions subsequent to the measurement date, related to pension from the following sources:
DeferredDeferred
OutflowsInflows
of Resourcesof Resources
Differences Between Expected and
Actual Experience$-$33,241
Changes in Actuarial Assumptions-23,536
Contributions to Plan Subsequent
to the Measurement Date149,107-
Total$149,107$56,777
82
City of Albertville, Minnesota
Notes to the Financial Statements
December 31, 2019
Note 5:Defined Benefit Pension Plans - Fire Relief Association (Continued)
Deferred outflows of resources totaling $149,107related to pensions resulting from the City’s contributions to the plan
subsequent to the measurement date willbe recognized as a reduction of the net pension assetin the year ended
December 31,2020.Other amounts reported as deferred outflows of resources related to the plan will be recognized in
pension expense as follows:
2020
$13,189
2021
2,554
2022
(607)
2023
9,141
2024
(7,876)
Thereafter(73,178)
E. Actuarial Assumptions
The total pensionassetat December 31, 2018was 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 Return5.50%
20 Year Municipal Bond Yield3.50%
There were no changes in actuarial assumptions in 2018.
The long-term expected rate of return on pension plan investments was determined using a building-block method in
which best 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
expectations were applied to derive the nominal rate of return for theportfolio.
The target allocation and best estimates of geometricreal rates of return foreach major asset class are summarized in
the following table:
Long-term
TargetExpected Real
AllocationRate of Return
Asset Class
Equities54.00 %7.30 %
Fixed Income37.003.80
Other1.006.00
Cash8.002.25
Total100.00 %
F. Discount Rate
The discount rate used to measure thetotal pension liability was 5.00 percent. The projection of cash flows used to
determine the discount rate assumed that contributions to the plan will be made as specifiedinstatute. 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.
83
City of Albertville, Minnesota
Notes to the Financial Statements
December 31, 2019
Note 5:Defined Benefit Pension Plans - Fire Relief Association (Continued)
G. PensionLiability 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 (4.50%)Current (5.50%)Increase (6.50%)
Defined Benefit Plan$(179,066)$(199,859)$(219,744)
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.
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 providewater 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 consistsof a six-memberBoard 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' sagreementstates 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 2018, the most recent available, is summarized below.
th
Street NE,
Separate financial statements can be obtained by writing to the Joint Powers Water Board, 11100 50
Albertville, Minnesota 55301.
Joint Powers Water Board
Statement of Net Position
December 31, 2018
Assets and Deferred Outflow of Resources$25,450,844
Liabilities$1,832,457
Net Position23,618,387
Total Liabilities and Net Position$25,450,844
84
City of Albertville, Minnesota
Notes to the Financial Statements
December 31, 2019
Note 6:Joint Ventures (Continued)
Joint Powers Water Board
Summary Statement of Activities
For the Year Ended December 31, 2018
Operating Revenues$2,388,081
Operating Expenses1,913,931
Operating Income474,150
Net Nonoperating Revenues557,815
Change in Net Position1,031,965
Net Position, January 122,586,422
Net Position, December 31$23,618,387
St. Michael - Albertville Ice Arena
In 1996-97, the City entered into a Joint Powers Agreement with the City of St. Michael and the Independent School
District No. 885. The agreement was for the construction and maintenance of a qualified ice arena. During 2006, the City
was notified as being selected as Mighty Ducks Grant recipient to help fund the cost of the ice arena. The arena was
constructed with the grant reward and contributions and donations from the City of Albertville, the City of St. Michael and
the Independent School District No.885.In 2019, a new ice sheetwas opened byIndependent School District No. 885
leading to an amended Joint Powers Agreement with the City of St. Michael and the Independent School District No. 885.
The City has an ongoing one-sixthequity financial interest of $224,137as of December 31, 2019.
Separate financial statements can be obtained by contacting Tina Lannes, Finance Directorat Albertville City Hall.
St. Michael - Albertville Ice Arena
Statement of Net Position
December 31, 2019
Assets$1,622,606
Liabilities$27,787
Net Position1,594,819
Total Liabilities and Net Position$1,622,606
85
City of Albertville, Minnesota
Notes to the Financial Statements
December 31, 2019
Note 6:Joint Ventures (Continued)
St. Michael - Albertville Ice Arena
Summary Statement of Activities
December 31, 2019
Program Revenues$943,369
Expenses(1,099,365)
Interest Revenue5,255
Change in Net Position(150,741)
Net Position, January 11,745,560
Net Position, December 31$1,594,819
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
approximately800 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 fundrevenues or tax increments. The City’s
applicable debt does not exceedthe limit.
86
City of Albertville, Minnesota
Notes to the Financial Statements
December 31, 2019
Note 7:Other Information (Continued)
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 projectsdeemed to be in the public interest. Although these bonds bear the name
of the City, the City, the State, nor any politicalsubdivision 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$2,940,000
Multifamily Housing Revenue Bonds, Series 2010A4,750,0004,200,000
Multifamily Housing Revenue Bonds, Series 2010B3,300,0003,015,624
Total Conduit Debt$16,755,000$10,155,624
D.Tax Increment Financing Districts
The City’s tax increment districts are subject to review by the State of Minnesota Officeof the State Auditor (OSA). Any
disallowed claims or misuse of tax increments could become a liability of the applicable fund. Management has indicated
that they are not aware of any instances of noncompliance which would have a materialeffect on the financial statements.
E.CommitmentCost 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 average of population and market value.
Note 8: Subsequent Event
In December 2019, a novel strain of coronavirus (COVID-19) surfaced. The spread of COVID-19 around the world in the
first quarter of 2020 has caused significant volatility in U.S. and international markets. There is significant uncertainty
around the its impact on the U.S. and international economies and, as such, there have been significant losses in the
stock market in first quarter 2020. Plan assets may have seen unrealized market losses as of May 11, 2020. However,
City management is unable to determine the long-termmaterial impact to its asset values.
87
88
REQUIRED SUPPLEMENTARY INFORMATION
CITY OF ALBERTVILLE
ALBERTVILLE, MINNESOTA
FOR THE YEAR ENDED
DECEMBER 31, 2019
89
City of Albertville, Minnesota
Required Supplementary Information
For the Year Ended December 31, 2019
Schedule ofEmployer’s Share of PERA Net Pension Liability - General Employees Fund
City's
Proportionate
State's
Share of the
Proportionate
City'sNet Pension
Share of
Liability as aPlan Fiduciary
Proportionatethe Net Pension
City'sProportion
City'sPercentage ofNet Position
Share ofLiability
oftheCoveredas a Percentage
Fiscalthe Net PensionAssociated withCovered
Net Pensionof the Total
Payroll
YearLiabilitythe CityTotalPayroll
Pension Liability
Liability(a/c)
Ending(a)(b)(a+b)(c)
06/30/190.01610 %$890,133$27,665$917,798$1,133,60681.0 %80.2 %
06/30/180.01470815,59626,781842,377986,84585.479.5
06/30/170.01510963,97612,125976,1011,010,55996.675.9
06/30/160.015501,258,52316,464 1,274,987921,545138.468.9
06/30/150.01500777,378 -777,378882,71688.178.2
Note: Schedule is intended to show 10-year trend. Additional years will be reported as they become available.
Schedule of Employer’s PERA Contributions - General Employees Fund
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)
12/31/19$90,361$90,361$-$1,204,8097.5%
12/31/1877,34777,347 -1,031,2937.5
12/31/1772,91072,910 -972,1297.5
12/31/1672,24472,244 -963,2557.5
12/31/1566,92966,929 -892,3867.5
Note: Schedule is intended to show 10-year trend. Additional years will be reported as they become available.
90
City of Albertville, Minnesota
Required Supplementary Information(Continued)
For the Year Ended December 31, 2019
Notes to the Required Supplementary Information - General Employee Fund
Changes in Actuarial Assumptions
2019 - The mortality projection scale was changed from MP-2017 to MP-2018.
2018 - The morality projection scale was changed from MP-2015 to MP-2017. The assumed benefit increase was
changed from 1.00 percent per year through 2044 and 2.50 percent per year thereafter to 1.25 percent per year.
2017 - The Combined Service Annuity (CSA) loads were changed from 0.8 percent for active members and 60 percent for
vested and non-vested deferred members. The revised CSA loads are now 0.0 percent for active member liability, 15.0
percent for vested deferred member liability and 3.0 percent for non-vested deferred member liability. The assumed
post-retirement benefit increase rate was changed from 1.0 percent per year for all years to 1.0 percent per year through
2044 and 2.5 percent per year thereafter.
2016 - The assumed post-retirement benefit increase rate was changed from 1.0 percent per year through 2035 and 2.5
percent per year thereafter to 1.0 percent per year for all future years. The assumed investment return was changed from
7.9 percent to 7.5 percent. The single discount rate was changed from 7.9 percent to 7.5 percent. Other assumptions
were changed pursuant to the experience study dated June 30, 2015. The assumedfuture salary increases, payroll
growth and inflation were decreased by 0.25 percent to 3.25percent for payroll growth and 2.50 percent for inflation.
2015 - The assumed post-retirement benefit increase rate was changed from 1.0 percent per year through2030 and 2.5
percent per year thereafter to 1.0 percent per year through 2035 and 2.5 percent per year thereafter.
Changes inPlan Provisions
2019 - The employer supplemental contribution was changed prospectively, decreasing from $31.0 million to $21.0million
per year. The state’s special funding contribution was changed prospectively, requiring $16.0 million due per year through
2031.
2018 - The augmentation adjustment in early retirement factors is eliminated over a five-year period starting July 1, 2019,
resulting in actuarial equivalence after June 30, 2024. Interest credited on member contributions decreased from 4.00
percent to 3.00 percent, beginning July 1, 2018. Deferred augmentation was changed to 0.00 percent, effective
January 1, 2019. Augmentation that has already accrued for deferred members will still apply. Contribution stabilizer
provisions were repealed. Postretirement benefit increases were changed from 1.00 percent per year with a provision to
increase to 2.50 percent upon attainment of 90.00 percent funding ratio to 50.00 percent of the Social Security Cost of
Living Adjustment, not less than 1.00 percent and not more than 1.50 percent, beginning January 1, 2019. For retirements
on or after January 1, 2024, the first benefit increase is delayed until the retiree reaches normal retirement age; does not
apply to Rule of 90 retirees, disability benefit recipients, or survivors. Actuarial equivalent factors were updated to reflect
revised mortality and interest assumptions.
2017 - The State’s contribution for the Minneapolis Employees Retirement Fund equals $16,000,000 in 2017 and 2018,
and $6,000,000 thereafter. The Employer Supplemental Contribution for the Minneapolis Employees Retirement Fund
changed from $21,000,000 to $31,000,000 in calendar years 2019 to 2031. The state’s contribution changed from
$16,000,000 to $6,000,000 in calendar years 2019 to 2031.
2015 - On January 1, 2015, the Minneapolis Employees Retirement Fund was merged into the General Employees Fund,
which increased the total pension liability by $1.1 billion and increased the fiduciaryplan net position by $892 million.
Upon consolidation, state and employer contributions were revised.
91
City of Albertville, Minnesota
Required Supplementary Information (Continued)
For the Year Ended December 31, 2019
Schedule of Employer’s Share of PERANet Pension Liability - Police and Fire Fund
City's
Proportionate
State's
Share of the
Proportionate
City'sNet Pension
Share of
Liability as aPlan Fiduciary
Proportionatethe Net Pension
City'sProportionCity'sPercentage ofNet Position
Share ofLiability
oftheCoveredas a Percentage
Fiscalthe Net PensionAssociated withCovered
Net PensionPayrollof the Total
YearLiabilitythe CityTotalPayroll
Liability(a/c)Pension Liability
Ending(a)(b)(a+b)(c)
06/30/190.00900 %$95,814$-$95,814$95,184100.7 %89.3 %
06/30/180.0088093,799 -121,51196,188126.388.8
06/30/170.00900121,511 -121,51189,111136.485.4
06/30/160.00900361,186 -361,18684,960425.163.9
06/30/150.00900102,261 -102,26161,377166.686.6
Note: Schedule is intended to show 10-year trend. Additional years will be reported as they become available.
Schedule of Employer’s PERA Contributions - Police and Fire Fund
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)
12/31/19$17,055$17,055$-$100,617 %16.95
12/31/1815,19715,197- 93,80916.20
12/31/1714,82014,820- 91,48216.20
12/31/1614,11114,111- 87,10616.20
12/31/159,9439,943- 61,37816.20
Note: Schedule is intended to show 10-year trend. Additional years will be reported as they become available.
Notes to the Required Supplementary Information - Police and Fire Fund
Changes in Actuarial Assumptions
2019 - The mortality projection scale was changed from MP-2017 to MP-2018.
2018 - The morality projection scale was changed from MP-2016 to MP-2017. As set by statute, the assumed post-
retirement benefit increase was changed from 1.0 percent per year through 2064 and 2.5 percent per year, thereafter, to
1.0 percent for all years, with no trigger.
92
City of Albertville, Minnesota
Required Supplementary Information (Continued)
For the Year Ended December 31, 2019
Notes to the Required Supplementary Information - Police and Fire Fund(Continued)
2017 - Assumed salary increases were changed as recommended in the June 30, 2016 experience study. The net effect
is proposed rates that average 0.34 percent lower than the previous rates. Assumed rates of retirement were changed,
resulting in fewer retirements. The Combined Service Annuity (CSA) load was 30 percent for vested and non-vested
deferred members. The CSA has been changed to 33 percent for vested members and 2 percent for non-vested
members. The base mortality table for healthy annuitants was changed from the RP-2000 fully generational table to the
RP-2014 fully generational table (with a base year of 2006), with male rates adjusted by a factor of 0.96. The mortality
improvement scale was changed from Scale AA to Scale MP-2016. The base mortality table for disabled annuitants was
changed from the RP-2000 disabled mortality table to the mortality tables assumed for healthy retirees. Assumed
termination rates were decreased to 3.0 percent for the first three years of service. Rates beyond the select period of
three years were adjusted, resulting in more expected terminations overall. Assumed percentage of married female
members was decreased from 65 percent to 60 percent. Assumed age difference was changed from separate
assumptions for male members (wives assumed to be three years younger) and female members (husbands assumed
to be four years older) to the assumption that males are two years older than females. The assumed percentage of
female members electing joint and survivor annuities was increased. The assumed post-retirement benefit increase rate
was changed from 1.00 percent for all years to 1.00 percent per year through 2064 and 2.50 percent thereafter. The
single discount rate was changed from 5.6 percent to 7.5 percent.
2016 - The assumed post-retirement benefit increase rate was changed from 1.0 percent per year through 2037 and 2.5
percent per year thereafter to 1.0 percent per year for all future years. The assumed investment return was changed from
7.9 percent to 7.5 percent. The single discount rate was changed from 7.9 percent to 5.6 percent. The assumed future
salary increases, payroll growth and inflation were decreased by 0.25 percent to 3.25 percent for payroll growth and 2.50
percent for inflation.
2015 - The assumed post-retirement benefit increase rate was changed from 1.0 percent per year through 2030 and 2.5
percent per year thereafter to 1.0 percent per year through 2037 and 2.5 percent per yearthereafter.
Changes in Plan Provisions
2018 - As set by statute, the assumed post-retirement benefit increase was changed from 1.0 percent per year through
2064 and 2.5 percent per year, thereafter, to 1.0 percent for all years, with no trigger. An enddate of July 1, 2048 was
added to the existing $9.0 million state contribution. New annual state aid will equal $4.5 million in fiscal years 2019 and
2020, and $9.0 million thereafter until the plan reaches 100 percent funding, or July 1, 2048, if earlier.Member
contributions were changed from 10.80 percent to 11.30 percent of pay, effective January 1, 2019 and 11.80 percent of
pay, effective January 1, 2020. Employer contributions were changed from 16.20 percent to 16.95 percent of pay,
effective January 1, 2019 and 17.70 percent of pay, effective January 1, 2020. Interest credited on member contributions
decreased from 4.00 percent to 3.00 percent, beginning July 1, 2018.Deferred augmentation was changed to 0.00
percent, effective January 1, 2019. Augmentation that has already accrued for deferred members will still apply. Actuarial
equivalent factors were updated to reflect revised mortality and interest assumptions.
2017- Assumed salary increases were changed as recommended in the June 30, 2016 experience study. The net effect is
proposed rates that average 0.34 percent lower than the previous rates. Assumed rates of retirement were changed,
resulting in fewer retirements. The combined service annuity (CSA) load was 30.00 percent for vested and non-vested,
deferred members. The CSA has been changed to 33.00 percent for vested members and2.00 percent for non-vested
members. The base mortality table for healthy annuitants was changed from the RP-2000 fully generational table to the
RP-2014 fully generational table (with a base year of 2006), with male rates adjusted by a factor of 0.96. The mortality
improvement scale was changed from Scale AA to Scale MP-2016. The base mortality table for disabled annuitants was
changed from the RP-2000 disabled mortality table to the mortality tables assumed for healthy retirees. Assumed
termination rateswere decreased to 3.00 percent for the first three years of service. Rates beyond the select period of
three years were adjusted, resulting in more expected terminations overall. Assumed percentage of married female
members was decreased from 65.00 percent to 60.00 percent. Assumed age difference was changed from separate
assumptions for male members (wives assumed to be three years younger) and female members(husbands assumed to
be four years older) to the assumption that males are two years older than females. The assumed percentage of female
members electing joint and survivor annuities was increased. The assumed postretirement benefit increase rate was
changed from 1.00 percent for all years to 1.00 percent per year through 2064 and 2.50 percent thereafter. The single
discount rate was changed from 5.60 percent per annum to 7.50 percent per annum.
2015 - The post-retirement benefit increase to be paid after attainment of the 90 percent funding threshold was changed,
from inflation up to 2.5 percent, toa fixed rate of 2.5 percent.
93
City of Albertville, Minnesota
Required Supplementary Information (Continued)
For the Year Ended December 31,2019
Schedule of Changes in the Fire Relief Association’sNet Pension Liability (Asset) and Related Ratios
20192018201720162015
Total Pension Liability
Service cost$32,747$29,490$15,570$16,177$14,820
Interest on pension liability (asset)31,21727,06530,95632,27335,420
Changes of benefit terms37,50540,146104,288 - -
Differences between expected and actual experience- - - - -
Gain or loss(5,308)- (40,750)- -
Changes of assumptions(9,656)- (21,365)- -
Benefit payments(33,851)(41,296)(127,238)-
86,50562,85047,403(78,788)50,240
Net Change in Total Pension Liability
Total Pension Liability - January 1591,584528,734481,331560,119509,879
Total Pension Liability - December 31 (a)$678,089$591,584$528,734$481,331$560,119
Plan Fiduciary Net Position
Employer contributions$-$-$-$-$11,877
Nonemployer contributions67,69965,73269,45465,94037,411
Projected investment return44,30037,62545,24646,82645,479
Gain (loss)(85,101)48,772(15,836)(53,155)(16,151)
Benefit payments- (33,851)(41,296)(127,238)-
Administrative expenses(2,182)(3,204)(2,835) -(5,205)
24,716115,07454,733(67,627)73,411
Net Change in Plan Fiduciary Net Position
Plan Fiduciary Net Position - January 1853,232738,158683,425751,052677,641
$877,948$853,232$738,158$683,425$751,052
Plan Fiduciary Net Position - December 31 (b)
Fire Relief's Net Pension Liability (Asset) - December 31 (a-b)$(199,859)$(261,648)$(209,424)$(202,094)$(190,933)
Plan Fiduciary Net Position as a Percentage
129.47%144.23%139.61%141.99%134.09%
of the Total Pension Liability (b/a)
N/AN/AN/AN/AN/A
Covered-employee Payroll
Fire Relief's Net Pension Liability (Asset) as a Percentage
of Covered-employee PayrollN/AN/AN/AN/AN/A
Notes to the Schedule:
Benefit Changes. In 2015, the benefit terms were modified to base public safety employee pensions on a final three-year average
salary instead of a final five-year average salary.
Changes of Assumptions. In 2015, amounts reported as changes of assumptions resulted primarily from adjustments to expected
retirement ages of general employees. In 2015, amounts reported as changes of assumptions resulted primarily from adjustments
to expected retirement ages of public safety employees. In 2015, amounts reported as changes of assumptions resulted primarily
from adjustments to assumed life expectancies as a result of adopting the RP-2000 Healthy Annuitant Mortality Table for purposes
of developing mortality rates.
Note: Schedule is intended to show 10-year trend. Additional years will be reported as they become available.
94
City of Albertville, Minnesota
Required Supplementary Information (Continued)
For the Year Ended December 31, 2019
Schedule of Employer’s Fire Relief Association Contributions
ActuarialActualContribution
DeterminedContributionsDeficiency
YearContributionPaid(Excess)
Ending(a)(b)(a-b)
12/31/19$67,699$67,699$-
12/31/1865,73265,732-
12/31/1764,73364,733-
12/31/1663,31563,315-
12/31/1561,48261,482-
12/31/1449,28849,288
Note: Schedule is intended to show 10-year trend. Additional years will be reported as they become available.
95
96
COMBININGANDINDIVIDUAL FUND
FINANCIAL STATEMENTSAND SCHEDULES
CITY OF ALBERTVILLE
ALBERTVILLE, MINNESOTA
FOR THE YEAR ENDED
DECEMBER 31, 2019
97
98
NONMAJOR GOVERNMENTAL FUNDS
CITY OF ALBERTVILLE
ALBERTVILLE, MINNESOTA
FOR THE YEAR ENDED
DECEMBER 31, 2019
99
City of Albertville, Minnesota
Nonmajor Governmental Funds
Combining Balance Sheet
December 31, 2019
Special
Revenue
203104
EconomicTotal
RevolvingDeveloperCapitalNonmajor
LoanLoan FundProjectsFunds
Assets
Cash and temporary investments$-$152,836$131,770$284,606
Liabilities
Advances from other funds$-$-$426,664$426,664
Fund Balances
Restricted--130,192130,192
Committed-152,836-152,836
Unassigned--(425,086)(425,086)
Total Fund Balances-152,836(294,894)(142,058)
Total Liabilities and Fund Balances$-$152,836$131,770$284,606
100
City of Albertville, Minnesota
Nonmajor Governmental Funds
Combining Statement of Revenues, Expenditures and
Changes in Fund Balances
For the Year Ended December 31, 2019
Special
Revenue
203104
EconomicTotal
RevolvingDeveloperCapitalNonmajor
LoanLoan FundProjectsFunds
Revenues
Tax increments$-$-$232,684$232,684
Interest on investments-1,4463,9745,420
Total Revenues-1,446236,658238,104
Expenditures
Current
General government37,847--37,847
Economic development--171,513171,513
Capital outlay
Culture and recreation-45,77145,771
Debt Service
Interest--41,46141,461
Total Expenditures37,847-258,745296,592
Excess (Deficiency) of Revenues
Over (Under) Expenditures(37,847)1,446(22,087)(58,488)
Other Financing Sources (Uses)
Transfers in-151,390-151,390
Transfers out(151,390)--(151,390)
Total Other Financing
Sources (Uses)(151,390)151,390--
Net Change in Fund Balances(189,237)152,836(22,087)(58,488)
Fund Balances, January 1189,237-(272,807)(83,570)
Fund Balances, December 31$-$152,836$(294,894)$(142,058)
101
102
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 interest are the main financing sources.
TIF #7 Senior Housing -This fund was created to facilitate the construction of the Senior Housing project within the City.
This fund accountsfor 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 #16 Mold Tech -This fund was created to facilitate the Mold Techproject within the City. This fund accounts for the
financial activity related to that project.
TIF #17 Old Castle fund - This fund accounts for the accumulation of resources and payments made for the OldCastle
project.
103
City of Albertville, Minnesota
Nonmajor Capital Projects Funds
Combining Balance Sheet
December 31, 2019
201407414
TIF #7TIF #14
ParkSeniorFraser
FundHousingSteel
Assets
Cash and temporary investments$9,098$48,16926,738
Liabilities
Advances from other funds$-$-$-
Fund Balances
Restricted9,09848,16926,738
Unassigned---
Total Fund Balances9,09848,16926,738
Total Liabilities and Fund Balances$9,098$48,169$26,738
104
415416417
TIF #15TIF #16TIF #17
GuardianMoldOld
AngelsTechCastleTotal
$46,187$666$912$131,770
$-$5,821420,843$426,664
46,187--130,192
-(5,155)(419,931)(425,086)
46,187(5,155)(419,931)(294,894)
$46,187$666$912$131,770
105
City of Albertville, Minnesota
Nonmajor Capital Projects Funds
Combining Statement of Revenues, Expenditures and
Changes in Fund Balances
For the Year Ended December 31, 2019
201407414
TIF #7TIF #14
ParkSeniorFraser
FundHousingSteel
Revenues
Tax increments$-$31,78850,264
Interest on investments3401,475500
Total Revenues34033,26350,764
Expenditures
Current
Economic development-29,69847,317
Capital outlay
Culture and recreation45,771--
Debt Service
Interest---
Total Expenditures45,77129,69847,317
Excess (Deficiency) of Revenues
Over (Under) Expenditures(45,431)3,5653,447
Net Change in Fund Balances(45,431)3,5653,447
Fund Balances, January 154,52944,60423,291
Fund Balances, December 31$9,098$48,169$26,738
106
415416417
TIF #15TIF #16TIF #17
GuardianMoldOld
AngelsTechCastleTotal
$84,905$16,677$49,050$232,684
866(119)9123,974
85,77116,55849,962236,658
77,26515,8921,341171,513
---45,771
--41,46141,461
77,26515,89242,802258,745
8,5066667,160(22,087)
8,5066667,160(22,087)
37,681(5,821)(427,091)(272,807)
$46,187$(5,155)$(419,931)$(294,894)
107
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, 2019
(With Comparative Actual Amounts for the Year Ended December 31, 2018)
2019
2018
Budgeted Amounts
ActualVariance withActual
OriginalFinalAmountsFinal BudgetAmounts
Revenues
Taxes
General property taxes$2,075,403$2,075,403$2,071,798$(3,605)$2,030,850
Licenses and permits
Business60,07660,07672,20912,13371,442
Non-business101,700101,700142,89941,199187,550
Total licenses and permits161,776161,776215,10853,332258,992
Intergovernmental
State
Local government aid112,015112,015112,11095111,024
Property tax credits--167167176
Other116,500116,500148,61532,115119,677
Total intergovernmental228,515228,515260,89232,377230,877
Charges for services
General government289,117289,117351,70862,591355,470
Public safety319,846319,846334,68414,838294,620
Culture and recreation15,00015,000317,844302,844195,092
Total charges for services623,963623,9631,004,236380,273845,182
Fines and forfeitures--5005001,500
Special assessments--18,28018,28012,838
Interest on investments25,00025,00094,59069,59026,464
Miscellaneous
Other15,00015,00013,085(1,915)16,213
Contributions and donations-----
Refunds and reimbursements--9,3099,30925,054
Total miscellaneous15,00015,00022,3947,39441,267
Total Revenues3,129,6573,129,6573,687,798558,1413,447,970
108
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, 2019
(With Comparative Actual Amounts for the Year Ended December 31, 2018)
2019
2018
Budgeted Amounts
ActualVariance withActual
OriginalFinalAmountsFinal BudgetAmounts
Expenditures
Current
General government
Legislative
Personal services$20,669$20,669$20,733$(64)$20,669
Supplies5005001,835(1,335)344
Other services and charges19,35519,35524,367(5,012)26,231
Total legislative40,52440,52446,935(6,411)47,244
Administration
Personal services128,172128,172120,5567,61690,408
Supplies5,0005,0003,1501,8502,506
Other services and charges11,50011,50011,548(48)12,614
Total administration144,672144,672135,2549,418105,528
City clerk
Personal services68,17568,17568,588(413)70,560
Supplies9,5009,5009,09340710,945
Other services and charges34,47734,47739,052(4,575)22,786
Total city clerk112,152112,152116,733(4,581)104,291
Elections and voter registration
Personal services----401
Other services and charges20,00020,0001,03018,97014,226
Total elections and voter registration20,00020,0001,03018,97014,627
Treasurer
Personal services78,96578,96584,317(5,352)75,711
Supplies7,2007,2002,9274,2735,134
Other services and charges23,33923,33914,3898,95013,729
Total treasurer109,504109,504101,6337,87194,574
Assessing
Other services and charges36,00036,00035,53846234,950
Legal
Other services and charges40,00040,00030,3169,68432,926
109
City of Albertville, Minnesota
General Fund
Schedule of Revenues, Expenditures and
Changes in Fund Balances - Budget and Actual (Continued)
For the Year Ended December 31, 2019
(With Comparative Actual Amounts for the Year Ended December 31, 2018)
2019
2018
Budgeted Amounts
ActualVariance withActual
OriginalFinalAmountsFinal BudgetAmounts
Expenditures (Continued)
Current (continued)
General government (continued)
Engineering
Personal services$-$-$-$-$67
Other services and charges25,00025,00022,6412,35981,021
Total engineering25,00025,00022,6412,35981,088
Miscellaneous
Personal services24,92724,92722,0962,83122,452
Supplies1,5001,5001,345155677
Other services and charges202,031202,031239,882(37,851)356,185
Total miscellaneous228,458228,458263,323(34,865)379,314
Total general government756,310756,310753,4032,907894,542
Public safety
Police protection
Other services and charges761,390761,390761,390-735,840
Fire protection
Personal services357,068357,068423,893(66,825)347,806
Supplies18,60118,60128,401(9,800)26,012
Other services and charges115,672115,672117,078(1,406)100,380
Total fire protection491,341491,341569,372(78,031)474,198
Protective inspection
Personal services102,703102,70387,71414,98958,276
Supplies1,3501,3501,797(447)1,187
Other services and charges125,834125,834128,726(2,892)117,258
Total protective inspection229,887229,887218,23711,650176,721
Animal control
Other services and charges7,0007,0008,192(1,192)9,178
Total public safety1,489,6181,489,6181,557,191(67,573)1,395,937
110
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, 2019
(With Comparative Actual Amounts for the Year Ended December 31, 2018)
2019
2018
Budgeted Amounts
ActualVariance withActual
OriginalFinalAmountsFinal BudgetAmounts
Expenditures (Continued)
Current (continued)
Public works
Streets
Personal services$255,492$255,492$206,130$49,362$168,747
Supplies43,30043,30051,590(8,290)36,528
Other services and charges61,96961,96946,74915,22073,803
Total streets360,761360,761304,46956,292279,078
Street lighting
Other services and charges88,51188,51186,0102,50181,222
Total public works449,272449,272390,47958,793360,300
Culture and recreation
Parks
Personal services274,414274,414260,83813,576222,760
Supplies18,76818,76863,856(45,088)19,680
Other services and charges135,275135,275121,78613,489112,762
Total parks428,457428,457446,480(18,023)355,202
Arena
Personal services--301,636(301,636)178,157
Total culture and recreation428,457428,457748,116(319,659)533,359
Economic development
Other services and charges6,0006,0006,994(994)4,872
Total current3,129,6573,129,6573,456,183(326,526)3,189,010
Capital outlay
General government----179,740
Public works----2,762
Culture and recreation----136
Total capital outlay----182,638
Total Expenditures3,129,6573,129,6573,456,183(326,526)3,371,648
Net Change in Fund Balances--231,615231,61576,322
Fund Balances, January 12,386,3102,386,3102,386,310-2,309,988
Fund Balances, December 31$2,386,310$2,386,310$2,617,925$231,615$2,386,310
111
City of Albertville, Minnesota
Debt Service Fund
Combining Balance Sheet
December 31, 2019
357358359360
CSAH 19
2003A2011C2012B2012A
G.O.G.O. CIPG.O. CIPG.O. Improv.
ImprovementRefundingRefundingRefunding
Assets
Cash and temporary investments$(33,121)$453,398$15,846$545,461
Receivables
Special assessments241,521--99,527
Interest----
Notes----
Advances to other funds----
Land held for resale800,434---
Total Assets$1,008,834$453,398$15,846$644,988
Deferred Inflows of Resources
Unavailable revenue - special assessments$241,521$-$-$99,528
Unavailable revenue - notes/intergovernmental----
Total Deferred Inflows of Resources241,521--99,528
Fund Balances
Restricted
Debt service767,313453,39815,846545,460
Total Deferred Inflows
of Resources and Fund Balances$1,008,834$453,398$15,846$644,988
112
361362468
LachmanIndustrial
2012A2012A
G.O. Improv.G.O. Improv.
RefundingRefundingInterstate 94Total
$108,358$177,988$336,481$1,604,411
117,915160,141475,8951,094,999
--5,0725,072
--950,929950,929
-426,664-426,664
-420,519-1,220,953
$226,273$1,185,312$1,768,377$5,303,028
$117,915$160,141$475,895$1,095,000
--950,929950,929
117,915160,1411,426,8242,045,929
108,3581,025,171341,5533,257,099
$226,273$1,185,312$1,768,377$5,303,028
113
City of Albertville, Minnesota
Debt Service Fund
Combining Schedule of Revenues, Expenditures And
Changes in Fund Balances
For the Year Ended December 31, 2019
357358359360
CSAH 19
2003A2011C2012B2012A
G.O.G.O. CIPG.O. CIPG.O. Improv.
ImprovementRefundingRefundingRefunding
Revenues
Property taxes$-$102,762$263,775$26,157
Special assessments---75,565
Interest earnings(3,046)15,5613,64412,695
Miscellaneous----
Total Revenues(3,046)118,323267,419114,417
Expenditures
Current
Public works----
Debt service
Principal110,000130,000230,000150,000
Interest and other1,43027,12535,08014,300
Total Expenditures111,430157,125265,080164,300
Net Change in Fund Balance(114,476)(38,802)2,339(49,883)
Fund Balances, January 1881,789492,20013,507595,343
Fund Balances, December 31$767,313$453,398$15,846$545,460
114
361362
LachmanIndustrial468
2012A2012A
G.O. Improv.G.O. Improv.
RefundingRefundingInterstate 94Total
$31,600$84,561$53,000$561,855
10,32666,40572,229224,525
2,76441,46212,03085,110
--85,86785,867
44,690192,428223,126957,357
-46,886-46,886
45,000105,000169,000939,000
4,5508,15032,921123,556
49,550160,036201,9211,109,442
(4,860)32,39221,205(152,085)
113,218992,779320,3483,409,184
$108,358$1,025,171$341,553$3,257,099
115
City of Albertville, Minnesota
Combining Statement of Fiduciary Net Position
Fiduciary Funds
December 31, 2019
Albertville Total
Friendly Albertville STMACustodial
City Days LionsIce Arena Funds
Assets
Cash and temporary investments$ 9,488$ 178,946$ 95,542$ 283,976
Accounts receivable - -150,422150,422
Inventory - -4,3514,351
Total Assets 9,488 178,946 250,315 438,749
Liabilities
Accounts payable - -21,16321,163
Accrued wages - -6,6246,624
Total Liabilities - - 27,787 27,787
Net Position
Restricted for organizations and other governments$ 9,488$ 178,946$ 222,528$ 410,962
116
City of Albertville, Minnesota
Combining Statement of Changes in Fiduciary Net Position
Fiduciary Funds
For the Year Ended December 31, 2019
Albertville Total
Friendly Albertville STMACustodial
City Days LionsIce Arena Funds
Additions
Contributions
Charges for services$-$-$604,084$604,084
Donations 3,00085,600-88,600
Concessions --78,24278,242
Total Contributions3,00085,600682,326770,926
Investment earnings
Interest, dividends and other903,0115,2558,356
Miscellaneous--261,043261,043
Total Additions3,09088,611948,6241,040,325
Deductions
Professional services-10,421312,526322,947
Supplies --35,73335,733
Utilties --213,122213,122
Insurance --20,60220,602
Repairs and Maintenance--37,32437,324
Capital Outlay --206,169206,169
Miscellaneous--273,889273,889
Total Deductions-10,4211,099,3651,109,786
3,09078,190(150,741)(69,461)
Net Increase (Decrease) in Fiduciary Net Position
6,398100,756373,269480,423
Net Position, January 1
$9,488$178,946$222,528$410,962
Net Position, December 31
117
City of Albertville, Minnesota
Summary Financial Report
Revenues and Expenditures For General Operations
Governmental Funds
For the Year Ended December 31, 2019
Percent
TotalIncrease
(Decrease)
20192018
Revenues
Taxes$4,233,810$4,109,2573.03%
Special assessments259,787291,412(10.85)
Licenses and permits215,108258,992(16.94)
Intergovernmental438,035312,50640.17
Charges for services1,004,236845,18218.82
Fines and forfeitures5001,500(66.67)
Interest on investments384,339120,130219.94
Miscellaneous138,771175,104(20.75)
Total Revenues$6,674,586$6,114,0839.17%
Per Capita$892$8258.10%
Expenditures
Current
General government$791,250$894,542(11.55)%
Public safety1,557,1911,395,93711.55
Public works437,365411,9446.17
Culture and recreation748,116533,35940.26
Economic development178,507175,1931.89
Capital outlay
General government165,954181,398(8.51)
Public safety1,685,56268,9842,343.41
Public works1,274,646498,866155.51
Culture and recreation209,207215,603(2.97)
Economic development45,15646,126(2.10)
Debt service
rincipal939,000992,000(5.34)
P
Interest and other165,017140,57917.38
Total Expenditures$8,196,971$5,554,53147.57%
Per Capita$1,095$74946.13%
Total Long-term Indebtedness$5,967,076$6,911,370(13.66)%
Per Capita797932(14.50)
General Fund Balance - December 31$2,617,925$2,386,3109.71%
Per Capita3503228.64
The purpose of this report is to provide a summary of financial information concerning the City of Albertvilleto 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.
118
STATISTICAL SECTION(UNAUDITED)
CITY OF ALBERTVILLE
ALBERTVILLE, MINNESOTA
FOR THE YEAR ENDED
DECEMBER 31, 2019
119
120
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
says about 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 thereader 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 thegovernment’s financial activities take place.
Operating Information
These schedules contain service and infrastructure data to helpthe reader understand how the information in the
government’sfinancial 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.
121
City of Albertville, Minnesota
Statistical Section (Unaudited)
Net Position by Component
Last Ten Fiscal Years
(Accrual Basis of Accounting)
Fiscal Year
2010201120122013
Governmental Activities
Net investment in capital assets$18,305,960$17,580,883$16,766,234$16,761,614
Restricted 7,516,670 7,729,485 7,720,152 4,083,926
Unrestricted 3,098,344 3,372,629 4,082,002 3,545,424
Total Governmental Activities Net Position$29,680,797$28,920,974$28,682,997$28,568,388
Business-type Activities
Net investment in capital assets$ 7,486,320$ 6,918,585$ 6,951,242$ 7,345,829
Unrestricted 10,690,635 11,152,126 11,091,877 10,722,778
Total Business-type Activities Net Position$18,176,955$18,070,711$18,043,119$18,068,607
Total Primary Government
Net investment in capital assets$25,792,280$24,499,468$23,717,476$24,107,443
Restricted 7,516,670 7,729,485 7,720,152 4,083,926
Unrestricted 13,788,979 14,524,755 15,173,879 14,268,202
Total Primary Government$47,097,929$46,753,708$46,611,507$42,459,571
Note: The City implemented GASB Statement No. 68 and GASB Statement No. 71 in 2015.
Years prior to 2015 have not been restated.
122
Table 1
Fiscal Year
201420152016201720182019
$15,982,545$16,000,840$15,925,140$16,653,225$16,996,701$17,512,792
4,359,3586,603,8713,240,9573,543,9263,482,5275,398,928
4,482,1324,287,6358,260,7668,191,5228,651,7397,289,708
$24,390,964$24,824,035$27,426,863$28,388,673$29,130,967$30,201,428
$ 8,198,571$ 8,423,132$ 8,632,306$ 8,717,564$ 9,046,737$10,922,191
9,559,5159,038,3708,856,6049,562,4399,489,1059,102,051
$17,758,086$17,461,502$17,488,910$18,280,003$18,535,842$20,024,242
$24,181,116$24,423,972$24,557,446$25,370,789$26,043,438$28,434,983
4,359,3586,603,8713,240,9573,543,9263,482,5275,398,928
14,041,64713,326,00517,117,37017,753,96118,140,84416,391,759
$42,582,121$44,353,848$44,915,773$46,668,676$47,666,809$50,225,670
123
City of Albertville, Minnesota
Statistical Section (Unaudited)
Changes in Net Position (Continued on the Following Pages)
Last Ten Fiscal Years
(Accrual Basis of Accounting)
Fiscal Year
2010201120122013
Expenses
Governmental Activities
General government$ 1,001,940$ 911,754$ 1,108,505$ 948,742
Public safety1,082,8341,077,4291,129,8631,075,760
Public works1,505,2691,449,7281,434,2022,090,108
Culture and recreation368,001382,071478,016505,161
Economic development1,198,298829,7827,878,251548,783
Interest on long-term debt412,145378,185354,898331,119
Total Governmental Activities Expenses5,568,4875,028,94912,383,7355,499,673
Business-type Activities
Sewer utility772,371801,198824,5261,024,449
Water utility919,956919,9821,170,3711,095,906
Storm Water utility68,209102,233151,009172,946
Recycling-65,08378,83079,948
Total Business-type Activities Expenses1,760,5361,888,4962,224,7362,373,249
Total Expenses$ 7,329,023$ 6,917,445$ 14,608,471$ 7,872,922
Program Revenues
Governmental Activities
Charges for services
General government$ 439,648$ 462,145$ 498,706$ 624,869
Public safety140,818113,013117,011157,752
Public works1,8505,249 7003,250
Culture and recreation-4,922166,826178,550
Operating grants and contributions236,325228,5408,309,198165,255
Capital grants and contributions580,337174,001102,796127,438
Total Governmental Activities Program Revenues1,398,978987,8709,195,2371,257,114
Business-type Activities
Charges for services
Sewer utility596,576690,745716,448730,933
Water utility858,768837,9011,066,130975,753
Storm Water utility216,167210,005220,943226,677
Recycling-67,70478,14480,115
Operating grants and contributions9,8302,82810,92619,352
Capital grants and contributions5,388115,489116,394368,310
Total Business-Type Activities Program Revenues1,686,7291,924,6722,208,9852,401,140
Total Program Revenues$ 3,085,707$ 2,912,542$ 11,404,222$ 3,658,254
Note: The City implemented GASB Statement No. 68 and GASB Statement No. 71 in 2015.
Years prior to 2015 have not been restated.
124
Table 2
Fiscal Year
201420152016201720182019
$ 923,711$ 715,779$ 858,450$ 822,891$ 737,375$ 767,343
1,103,4311,222,6791,602,0751,548,6741,529,7851,877,457
1,461,3191,636,9681,631,3431,385,4201,757,7641,195,560
558,881569,429617,041788,338611,2581,069,989
137,930229,167117,086182,059221,319223,663
295,924255,379197,099228,006167,872191,958
4,481,1964,629,4015,023,0944,955,3885,025,3735,325,970
946,586961,507846,349805,318818,4181,102,919
1,108,449399,813418,260369,100411,151451,246
170,061182,779187,029265,436272,024252,627
81,02481,68994,58095,850106,514118,359
2,306,1201,625,7881,546,2181,535,7041,608,1071,925,151
$ 6,787,316$ 6,255,189$ 6,569,312$ 6,491,092$ 6,633,480$ 7,251,121
$ 574,438$ 489,742$ 437,398$ 630,143$ 608,525$ 544,149
161,373227,250258,553276,445296,707335,444
1,2002,5001,7005,3003,0501,750
234,694154,851195,815229,772165,90887,525
249,041230,499240,569265,983193,526191,470
340,6322,000,97099,914118,011150,340359,247
1,561,3783,105,8121,233,9491,525,6541,418,0561,519,585
728,308752,094786,153848,544868,052866,602
917,507256,040272,503355,075362,737348,310
228,659251,960222,630213,666211,420209,206
80,65981,22387,44482,86794,134105,028
18,65764,00115,95418,24016,79422,416
154,336122,884114,742683,125201,5611,515,818
2,128,126 1,528,2021,499,4262,201,5171,754,6983,067,380
$ 3,689,504$ 4,634,014$ 2,733,375$ 3,727,171$ 3,172,754$ 4,586,965
125
City of Albertville, Minnesota
Statistical Section (Unaudited)
Changes in Net Position (Continued)
Last Ten Fiscal Years
(Accrual Basis of Accounting)
Fiscal Year
2010201120122013
Net Revenues (Expenses)
Governmental activities$ (4,169,509)$ (4,041,079)$ (3,188,498)$ (4,242,559)
Business-type activities(73,807)36,176(15,751)27,891
Total Primary Government Revenues (Expenses)$ (4,243,316)$ (4,004,903)$ (3,204,249)$ (4,214,668)
General Revenues and Other Changes in Net Position
General Revenues
Governmental Activities
Taxes
Property taxes, levied for general purpose$ 2,255,664$ 2,252,713$ 2,448,719$ 2,491,895
Property taxes, levied for debt service592,295702,317715,157657,878
Tax increments34,55526,71626,71626,715
Grants and contributions not restricted to specific programs451,50720,28910,28013,681
Unrestricted investment earnings52,615144,58199,042(48,206)
Loss on sale of capital assets13,506---
Gain on sale of capital assets-3,381--
Miscellaneous----
Transfers9,544299,157-(50,000)
Special item - decrease in land held for resale---(3,026,828)
Total Governmental Activities General Revenues3,409,6863,449,1543,299,91465,135
Business-type Activities
Unrestricted investment earnings152,515156,73799,440(52,403)
Transfers(9,544)(299,157)- 50,000
Total Business-type Activities General Revenues142,971(142,420)99,440(2,403)
Total Primary Government$ 3,552,657$ 3,306,734$ 3,399,354$ 62,732
Change in Net Position
Governmental activities$ (759,823)$ (591,925)$ 111,416$ (4,177,424)
Business-type activities69,164(106,244)83,68925,488
Total Primary Government$ (690,659)$ (698,169)$ 195,105$ (4,151,936)
Note: The City implemented GASB Statement No. 68 and GASB Statement No. 71 in 2015.
Years prior to 2015 have not been restated.
126
Table 2
Fiscal Year
201420152016201720182019
$ (2,919,818)$ (1,523,589)$ (3,789,145)$ (3,429,734)$ (3,429,734)$ (3,806,385)
(177,994)(97,586)(46,792)665,813665,8131,142,229
$ (3,097,812)$ (1,621,175)$ (3,835,937)$ (2,763,921)$ (2,763,921)$ (2,664,156)
$ 2,478,224$ 2,606,772$ 2,746,144$ 2,839,090$ 3,054,845$ 3,497,033
805,791885,270921,796916,050831,410508,855
28,648109,132169,651230,131231,247232,684
90,26998,932102,31193,140111,979113,056
182,32286,644103,541138,248120,130384,339
------
-3,450-49,020-140,879
-132,569280,219172,681--
330,236--(46,816)--
------
3,915,4903,922,7694,323,6624,391,5444,349,6114,876,846
197,70989,69474,20078,464109,248346,171
(330,236)--46,816--
(132,527)89,69474,200125,280109,248346,171
$ 3,782,963$ 4,012,463$ 4,397,862$ 4,516,824$ 4,458,859$ 5,223,017
$ 995,672$ 2,399,180$ 534,517$ 961,810$ 742,294$ 1,070,461
(310,521)(7,892)27,408791,093255,8391,488,400
$ 685,151$ 2,391,288$ 561,925$ 1,752,903$ 998,133$ 2,558,861
127
City of Albertville, Minnesota
Statistical Section (Unaudited)
Fund Balances of Governmental Funds
Last Ten Fiscal Years
Fiscal Year
2010201120122013
General Fund
Reserved$69,759$-$-$-
Unreserved1,070,100---
Nonspendable-69,75969,75951,000
Unassigned-1,120,4551,248,8151,450,586
Total General Fund$1,139,859$1,190,214$1,318,574$1,501,586
All Other Governmental Funds
Reserved$4,504,995$-$-$-
Unreserved, reported in
Debt service funds912,359---
Special revenue funds178,928---
Capital project funds6,632,652---
Nonspendable---10
Restricted-5,821,5877,827,8604,353,603
Committed ----
Assigned-8,811,6639,422,4849,456,557
Unassigned-(1,738,994)(746,029)(767,766)
Total All Other Governmental Funds$12,228,934$12,894,256$16,504,315$13,042,404
Note: The requirements of GASB 54 were implemented in 2011.
128
Table 3
Fiscal Year
201420152016201720182019
$-$-$-$-$-$-
------
51,00051,00051,00051,000133,328140,151
1,798,3581,876,1861,887,9222,258,9882,252,9822,477,774
$1,849,358$1,927,186$1,938,922$2,309,988$2,386,310$2,617,925
$-$-$-$-$-$-
------
------
------
13,1842,6951,614---
5,276,4923,263,8713,272,4923,670,8653,758,5263,387,291
-----152,836
9,920,3955,969,3746,412,3966,076,6786,390,844
4,853,536
(971,681)(842,241)(469,839)(514,315)(432,912)(425,086)
$14,238,390$8,393,699$9,216,663$9,233,228$9,716,458$7,968,577
129
City of Albertville, Minnesota
Statistical Section (Unaudited)
Changes in Fund Balances of Governmental Funds
Last Ten Fiscal Years
Fiscal Year
2010201120122013
Revenues
Taxes$ 2,946,660$ 3,058,608$ 3,182,549$ 3,212,853
Licenses and permits217,530125,273129,088213,277
Intergovernmental1,015,378258,2625,881,766158,861
Charges for services417,828558,899707,1611,097,560
Fines and forfeitures--200-
Special assessments575,468342,603274,016306,453
Interest on investments141,487207,990143,346(80,585)
Miscellaneous152,256132,58189,326203,566
Total Revenues5,466,6074,684,21610,407,4525,111,985
Expenditures
General government860,648774,7831,002,640808,790
Public safety993,883992,0721,031,034972,893
Public works387,467392,957393,248403,811
Culture and recreation240,559215,056346,895353,316
Economic development70,350149,96954,048261,318
Capital Outlay720,1681,069,9537,892,0951,040,402
Debt service
Principal405,000420,000590,000805,700
Interest394,958426,125228,682315,036
Bond issuance costs--67,308-
Total Expenditures4,073,0334,440,91511,605,9504,961,266
Excess (Deficiency) of Revenues
Over (Under) Expenditures1,393,574243,301(1,198,498)150,719
Other Financing Sources (Uses)
Transfers in885,7061,575,525626,728697,254
Bonds refunded--5,055,000-
Bond issuance-2,660,0003,278,551-
Payment to refunded bond escrow agent-(2,618,259)(3,250,353)-
Premiums on bonds sold-23,65258,112-
Sale of capital assets31,3273,381--
Transfers out(966,176)(1,171,923)(831,121)(1,100,044)
Total Other Financing
Sources (Uses)(49,143)472,3764,936,917(402,790)
Special Item
Decrease in land held for resale---(3,026,828)
Net Change in Fund Balances$ 1,344,431$ 715,677$ 3,738,419$ (3,278,899)
Debt Service as a Percentage of
Noncapital Expenditures21.7%20.3%7.1%26.0%
130
Table 4
Fiscal Year
201420152016201720182019
$ 3,302,350$ 3,596,744$ 3,840,259$ 4,018,573$ 4,109,257$ 4,233,810
167,584197,878174,928239,833258,992215,108
209,6671,958,201282,508268,493312,506438,035
857,837648,359662,313888,979845,1821,004,236
-1,000-2001,500500
384,727434,682246,350196,021291,412259,787
282,34486,644103,541138,248120,130384,339
214,302358,035537,803385,472175,104138,771
5,418,8117,281,5435,847,7026,135,8196,114,0836,674,586
748,364606,158738,974735,742894,542791,250
1,006,5241,154,6561,302,4631,350,5001,395,9371,557,191
413,536634,542431,596387,744411,944437,365
401,593387,025445,486501,693533,359748,116
96,866203,62676,875141,632175,193178,507
328,322841,615883,7331,470,9041,010,9773,380,525
918,0003,191,851963,240962,822992,000939,000
288,757234,925170,635198,979140,579165,017
7,458-----
4,209,4207,254,3985,013,0025,750,3925,554,5318,196,971
1,209,39127,145834,700385,427559,552(1,522,385)
868,993344,000295,133323,42450,068151,390
528,062-----
-235,000----
------
------
-3,450-49,020-6,119
(1,062,688)(344,000)(295,133)(370,240)(50,068)(151,390)
334,367238,450-2,204-6,119
------
$ 1,543,758$ 265,595$ 834,700$ 387,631$ 559,552$ (1,516,266)
29.6%52.5%25.2%26.4%24.5%20.6%
131
City of Albertville, Minnesota
Statistical Section (Unaudited)
Tax Capacity, Market Value and Estimated Actual Value of Taxable Property
(Shown by Year of Tax Collectability)
2010201120122013
Taxable Market Value
Personal property$4,179,500$4,712,900$4,870,500$5,275,300
Real estate635,692,600584,020,100523,802,300468,964,700
Total Taxable Market Value$ 639,872,100$ 588,733,000$ 528,672,800$ 474,240,000
Estimated Actual Value of Taxable Property$ 658,736,600$ 600,645,500$ 528,672,800$ 474,240,000
Taxable Market Value as a Percentage of
Estimated Actual Value97.14%98.02%100.00%100.00%
Tax Capacity
Personal property$81,783$92,398$95,065$103,190
Real estate7,955,5997,312,7696,663,3676,088,709
Subtotal8,037,3827,405,1676,758,4326,191,899
Less: tax increment(28,165)(21,696)(21,696)(21,696)
Net Tax Capacity$8,009,217$7,383,471$6,736,736$6,170,203
Tax levies
General$2,338,941$2,373,087$2,429,769$2,423,781
Debt service600,814722,994712,503781,325
Total$2,939,755$3,096,081$3,142,272$3,205,106
Tax capacity rate
General29.203%32.141%36.067%39.282%
Debt service7.5029.79210.57612.663
Total36.705
%41.933%46.644%51.945%
Source: Wright County Auditor/Treasurer Department
132
Table 5
201420152016201720182019
$5,239,900$5,279,500$5,442,200$6,101,100$6,101,100$6,389,500
500,588,200542,867,500567,786,000656,054,200656,054,200707,392,300
$ 505,828,100$ 548,147,000$ 573,228,200$ 662,155,300$ 662,155,300$ 713,781,800
$ 556,863,100$ 595,816,100$ 620,513,900$ 705,380,300$ 705,380,300$ 758,532,600
90.84%92.00%92.38%93.87%93.87%94.10%
$102,426$103,325$106,630$111,611$119,863$125,822
6,379,9766,780,5987,026,9567,384,3737,961,8928,513,031
6,482,4026,883,9237,133,5867,495,9848,081,7558,638,853
(23,265)(79,615)(123,377)(169,948)(171,863)(171,188)
$6,459,137$6,804,308$7,010,209$7,326,036$7,909,892$8,467,665
$2,397,983$2,547,180$2,749,549$2,863,190$3,056,908$3,442,876
902,141949,967921,691916,045831,410561,855
$3,300,124$3,497,147$3,671,240$3,779,235$3,888,318$4,004,731
37.12537.435%39.222%39.082%38.647%40.659%
13.96713.96113.14812.50410.5116.635
51.09251.396%52.370%51.586%49.158%47.294%
133
134
Table 6
City of Albertville, Minnesota
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
201036.705%35.816%52.049%39.961%
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
201652.37039.97049.10239.266
201751.58639.59646.87836.653
201849.15839.94647.95036.137
201947.29444.27347.14332.865
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).
135
City of Albertville, Minnesota
Statistical Section (Unaudited)
Principal Taxpayers
Current Year and Ten Years Ago
December 31, 2019
2019
Percent
of Total
Tax
Tax Capacity
TaxpayerCapacityRank
CPG Partners, LP$1,156,144113.65%
Albertville Station LLC182,01022.15
GMR Albertville LLC76,25030.90
Fraser Building LP71,39040.84
Mollie LLC69,74050.82
Evans Park Inc63,92860.75
Centerpoint Energy62,18670.73
Border States Industries, Inc.59,25080.70
HGP Architectural Glass, Inc.56,74290.67
Northern States Power Company56,738100.67
Welcome Furniture and Appliances--
Albertville Plaza, LLC--
CWB Albertville Crossing, LLC--
William A. Hinks--
Albertville Medical Building, LLC --
Albertville Investments, LLC--
Manchester II, LLC--
Lake Community Bank --
Totals$1,854,37821.90%
Source: Wright County Auditor/Treasurer Department
136
Table 7
2010
Percent
of Total
Tax
Tax Capacity
CapacityRank
$1,103,476113.78%
--
--
--
--
--
--
74,68860.93
--
--
75,30650.94
71,53470.89
259,63823.24
91,78831.15
83,54241.04
70,67680.88
45,902100.57
46,55690.58
$1,923,10624.01%
137
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
2010$2,939,755$2,864,66797.45%$74,478$2,939,14599.98%
20113,096,0812,921,03194.35173,0053,094,03699.93
20123,142,2723,122,84399.3816,9383,139,78199.92
20133,205,1063,160,64798.6135,2793,195,92699.71
20143,300,1243,263,34398.8944,8083,308,151100.24
20153,497,1473,461,79698.9924,3153,486,11199.68
20163,671,2403,641,14899.1811,1913,652,33999.49
20173,779,2353,753,98499.336,7483,760,73299.51
20183,888,3183,864,94799.406,1443,871,09199.56
20194,004,7313,977,17999.31-3,977,17999.31
Source: Wright County Auditor/Treasurer Department
(1) Includes state paid property tax credits.
138
Table 9
City of Albertville, Minnesota
Statistical Section (Unaudited)
Ratios of Outstanding Debt by Type
Last Ten Fiscal Years
Governmental ActivitiesBusiness-type Activities
GeneralLeaseGeneralGeneralTotal
Percentage of
Fiscal ObligationRevenueObligationObligationPrimaryPer
Personal Income
YearBondsBondsRevenue BondsBondsGovernmentCapita
2010$4,525,000$4,785,000$4,296,150$790,000$14,396,1505.48%$2,044
20116,218,6522,875,0004,493,072780,00014,366,7245.432,020
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
20168,876,782-2,635,154536,01912,047,9553.731,647
20177,908,666-2,365,136466,53510,740,3373.201,457
20186,911,370-2,090,118395,2299,396,7172.661,268
20195,967,076-7,656,726318,92313,942,7254.001,863
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 145 for personal income and population data.
139
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
2010$5,315,000$96,606$5,218,3940.79%$741
20116,998,652331,4606,667,1921.11937
201215,241,7546,793,3008,448,4541.601,180
201314,374,4543,244,23611,130,2182.351,544
201414,049,8533,970,72110,079,1321.811,391
201510,451,4026,189,9424,261,4600.72587
20169,412,8012,942,0196,470,7821.04884
20178,375,2013,216,1785,159,0230.73700
20187,306,5993,133,1854,173,4140.59563
20196,285,9995,268,7361,017,2630.13136
Note: Details regarding the City's outstanding debt can be found in the notes to the financial statements.
See the Schedule of Demographic and Economic Statistics on page 145 for population data.
See the Schedule of Tax Capacity, Market Value and Estimated Actual Value of Taxable Property for property value data.
140
Table 11
City of Albertville, Minnesota
Statistical Section (Unaudited)
Computation of Direct and Overlapping Debt
December 31, 2019
GrossAmount
Bondedof
Percentage
Debt UsedNet Debt
Applicable to
For Net DebtApplicable
District
Calculationto District
Direct Debt
City of Albertville$ 5,967,076 100.00%$ 5,967,076
School District #885 167,170,000 24.56 41,056,952
School District #728 207,155,000 4.47 9,259,829
Wright County 153,290,000 5.05 7,741,145
Total Overlapping Debt 527,615,000 11.00 58,057,926
Total Direct and Overlapping Debt$ 533,582,076 12.00%$ 64,025,002
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.
141
City of Albertville, Minnesota
Statistical Section (Unaudited)
Legal Debt Margin Information
Last Ten Fiscal Years
Fiscal Year
2010201120122013
Debt Limit (1)$19,196,163$17,661,990$15,860,184$14,227,200
Total Net Debt Applicable to Limit----
Total$19,196,163$17,661,990$15,860,184$14,227,200
Total Net Debt Applicable to the Limit
as a Percentage of Debt Limit$-$-$-$-
(1) The debt limit 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. By law, the general obligation debt subject to the limitation may be offset by amounts set aside for the
extinguishment of those obligations.
142
Table 12
Fiscal Year
201420152016201720182019
$15,174,843$16,444,410$17,196,846$19,864,659$19,864,659$21,413,454
------
$15,174,843$16,444,410$17,196,846$19,864,659$19,864,659$21,413,454
$-$-$-$-$-$-
Legal Debt Margin Calculation for Fiscal Year 2019
Taxable Market Value$ 713,781,800
Debt Limit (3% of Market Value)$21,413,454
Debt Applicable to Limit
General Obligation Bonds (2)-
Less: Amount Available in
Debt Service Funds-
Total Net Debt Applicable to Limit-
Legal Debt Margin$21,413,454
143
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
2010$635,991$281,087$354,904$305,474$169,0930.75
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
2016836,374464,576371,798477,20049,2810.71
2017904,445425,770478,675262,20043,7301.56
2018948,167439,181508,986265,90041,1241.66
20191,109,813565,587544,226270,90037,4211.77
Lease Revenue Bonds
Revenue from
Debt Service
FiscalProperty
YearTaxesPrincipalInterestCoverage
2010496,
$363$275,000$230,0870.98
2011518,415285,000253,6200.96
2012----
2013----
2014----
2015----
2016----
2017----
2018----
2019----
144
Table 14
City of Albertville, Minnesota
Demographic and Economic Statistics
Last Ten Fiscal Years
TotalPer Capita
Unemployment
Fiscal Number ofPersons perPersonal Personal MedianSchool
Rate (7)
YearPopulation (1)Households (2)Household (2)Income (3)Income (4)Age (5)Enrollment (6)
20107,0442,3772.96$ 262,880,815$37,32028.85,0938.3%
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
20147,2472,4342.98308,178,67542,52534.65,7253.9
20157,2622,4113.01321,866,36444,32234.65,9002.8
20167,3172,4762.96331,057,66545,24534.66,0833.7
20177,3702,4802.97335,335,00045,50034.66,3003.5
20187,4122,4912.98352,640,72447,57734.66,3003.5
20197,4852,5162.97348,748,60546,59334.66,3003.2
Data Sources
(1) Minnesota Office of the State Demographer
(2) Minnesota Office of the State Demographer (2008-2016); Estimated (2017-2019)
(3) Calculated by the City.
(4) US Department of Commerce - Bureau of Economic Analysis (2008-2016); Estimated (2017)
(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 2018. The City estimated this year based on averages from data compiled for years 2009 - 2017.
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.
145
City of Albertville, Minnesota
Principal Employers
Current Year and Ten Years Ago
2019
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--
Omann Brothers--
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.
146
Table 15
2010
Percentage
of Total City
Employment
EmployeesRank
800116.00%
27525.50
--
--
753-
--
2080.40
4050.80
--
--
2070.40
2060.40
5541.10
2080.40
1890.36
17100.34
5,000*25.70%
147
Table 16
City of Albertville, Minnesota
Full-time Equivalent City Government Employees by Function
Last Ten Fiscal Years
Function
2009201020112012201320142015201620172018
General Government 7.0 6.0 5.0 5.0 6.5 6.3 6.3 6.3 6.3 6.7
Public Safety
Fire
Full Time Fire Chief - - - - - - - 1.0 1.0 1.0
Civilians (1) 37 33 30 30.0 33.0 30.0 29.0 31.0 29.0 32.0
Public Works
Engineering 1.0 1.0 1.0 1.0 1.0 0.3 0.3 0.3 0.3 0.3
Maintenance 1.0 1.0 1.0 1.0 1.0 1.5 1.5 2.0 2.0 2.0
Culture and Recreation
Parks 1.0 1.0 1.0 1.0 1.0 1.5 1.5 2.0 2.0 2.0
Water 1.5 1.5 1.5 1.0 1.5 1.5 1.5 1.5 1.5 1.5
Sewer 1.5 1.5 1.5 1.0 1.5 1.5 1.5 1.5 1.5 1.5
Total 50.0 45.0 41.0 40.0 45.5 42.5 41.6 45.6 43.6 47.0
Source: City of Albertville
(1) The fire department is made up entirely of volunteer civilians. They are used on an on-call basis only.
148
Table 17
City of Albertville, Minnesota
Operating Indicators By Function
Last Ten Fiscal Years
Function
2009201020112012201320142015201620172018
Fire
Fire 430 280 257 278 217 229 254 256 276 366
Inspections
28 52 288 360 190 212 211 10 6 195
Building/Engineering
Permits Issued
381 482 241 394 391 412 453 542 477 468
Public Works
Street Sweeping (Hours)
69 69 69 77 82 74 80 123 115 67
Snowplowing (Hours)
512 512 512 320 330 791 723 387 210 364
Equipment Repair (Hours)
1,000 1,000 1,000 1,100 1,200 750 600 692 663 829
Water
New Connections
66 1 2 4 14 21 22 24 20 24
Water Mains Breaks
3 2 2 - 2 2 6 3 3 3
Sewer
Average Daily Treatment Flow (Thousands of Ga
516,000 447,000 466,000 490,000 468,000 475,000 510,000 474,000 502,000 484,000
Sources: City of Albertville
Note: Indicators are not available for the general government function.
149
150
Table 18
City of Albertville, Minnesota
Capital Asset Statistics by Function
Last Ten Fiscal Years
Function
2009201020112012201320142015201620172018
Public Safety
Fire stations
Stations1111111111
Public Works
Highways and streets
Streets (miles)36363636363638383839
Street lights417417417417417417417417417417
Traffic signals5555677777
Culture and Recreation
Parks division
Parks11111111111111111111
Parks acreage120120120120125125125125125125
Arena/Civic Center1111111111
Baseball diamonds5555555555
Basketball courts5555555555
Bike trails (miles)5555555555
Hockey rinks/outdoor2222222222
Softball diamonds1222222222
Tennis courts5555555555
Volleyball courts1111111111
Utilities
Water
Miles of water main45465252525252525252
Consumers
Maximum daily capacity (gallons)
Sewer
Miles of sanitary sewer34353737373737373737
Lift stations991010101010101010
Maximum daily treatment capacity (gallons)929,000929,000929,000929,000929,000929,000929,000929,000929,000929,000
Storm sewer
Miles of storm sewer26263535353535353535
Source: City of Albertville
Note: No capital asset indicators are available for the general government function.
151