2021 Annual Comprehensive Financial Report A,lbertville
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Annual Comprehensive
Financial Report
For the Year Ended December 31 , 2021
City of Albertville, Minnesota
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CITY OF ALBERTVILLE, MINNESOTA
ANNUAL COMPREHENSIVE FINANCIAL REPORT
FOR THE FISCAL YEAR ENDED
DECEMBER 31, 2021
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
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City of Albertville, Minnesota
Annual Comprehensive Financial Report
Table of Contents
For the Year Ended December 31,2021
Page No.
Introductory Section
Letter of Transmittal from City Administrator and Finance Director 9
Certificate of Achievement of Excellence in Financial Reporting 13
Organizational Chart 14
Elected and Appointed Officials 15
Financial Section
Independent Auditor's Report 19
Management's Discussion and Analysis 23
Basic Financial Statements
Government-wide Financial Statements
Statement of Net Position 37
Statement of Activities 38
Fund Financial Statements
Governmental Funds
Balance Sheet 42
Reconciliation of the Balance Sheet to the Statement of Net Position 45
Statement of Revenues, Expenditures and Changes in Fund Balances 46
Reconciliation of the Statement of Revenues, Expenditures and Changes in Fund
Balances to the Statement of Activities 48
General Fund
Statement of Revenues, Expenditures and Changes in Fund Balances- Budget and Actual 49
Proprietary Funds
Statement of Net Position 50
Statement of Revenues, Expenses and Changes in Net Position 53
Statement of Cash Flows 54
Fiduciary Funds
Statement of Fiduciary Net Position 56
Statement of Changes in Fiduciary Net Position 57
Notes to the Financial Statements 59
Required Supplementary Information
Schedule of Employer's Share of Public Employees Retirement Association Net Pension Liability-
General Employees Retirement Fund 92
Schedule of Employer's Public Employees Retirement Association Contributions-
General Employees Retirement Fund 92
Notes to the Required Supplementary Information -General Employee Retirement Fund 93
Schedule of Employer's Share of Public Employees Retirement Association Net Pension Liability-
Public Employees Police and Fire Fund 95
Schedule of Employer's Public Employees Retirement Association Contributions-
Public Employees Police and Fire Fund 95
Notes to the Required Supplementary Information - Public Employees Police and Fire Fund 96
Schedule of Changes in the Fire Relief Association's Net Pension Liability (Asset) and Related Ratios 98
Schedule of Employer's Fire Relief Association Contributions 99
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City of Albertville, Minnesota
Annual Comprehensive Financial Report
Table of Contents (Continued)
For the Year Ended December 31, 2021
Page No.
Combining and Individual Fund Financial Statements and Schedules
Nonmajor Governmental Funds
Combining Balance Sheet 104
Combining Statement of Revenues, Expenditures and Changes in Fund Balances 105
Nonmajor Special Revenue Funds
Combining Balance Sheet 108
Combining Statement of Revenues, Expenditures and Changes in Fund Balances 109
Nonmajor Capital Projects Funds
Combining Balance Sheet 112
Combining Statement of Revenues, Expenditures and Changes in Fund Balances 114
General Fund
Schedule of Revenues, Expenditures and Changes in Fund Balances- Budget and Actual 116
Debt Service Funds
Combining Balance Sheet 120
Combining Schedule of Revenues, Expenditures and Changes in Fund Balances 122
Fiduciary Funds
Combining Statement of Fiduciary Net Position 124
Combining Statement of Changes in Fiduciary Net Position 125
Summary Financial Report
Revenues and Expenditures for General Operations-Governmental Funds 126
Table Page No.
Statistical Section (Unaudited)
Net Position by Component 1 130
Changes in Net Position 2 132
Fund Balances of Governmental Funds 3 136
Changes in Fund Balances of Governmental Funds 4 138
Tax Capacity, Market Value and Estimated Actual Value of Taxable Property 5 140
Property Tax Capacity Rates- Direct and Overlapping Governments 6 143
Principal Taxpayers 7 144
Property Tax Levies and Collections 8 146
Ratios of Outstanding Debt by Type 9 147
Ratios of General Bonded Debt Outstanding 10 148
Computation of Direct and Overlapping Debt 11 149
Legal Debt Margin Information 12 150
Pledged-Revenue Coverage 13 152
Demographic and Economic Statistics 14 153
Principal Employers 15 154
Full-time Equivalent City Government Employees by Function 16 156
Operating Indicators by Function 17 157
Capital Asset Statistics by Function 18 159
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INTRODUCTORY SECTION
CITY OF ALBERTVILLE
ALBERTVILLE, MINNESOTA
FOR THE YEAR ENDED
DECEMBER 31, 2021
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April 29,2022
Honorable Mayor and Members of the City Council
City of Albertville, Minnesota
Minnesota statutes require the City to issue an annual report on its financial position and activity,
prepared in accordance with generally accepted accounting principles (GAAP),and audited in
accordance with generally accepted auditing standards by a firm of licensed certified public
accountants,or the Office of the State Auditor. Pursuant to that requirement,we hereby issue the
Annual Comprehensive Financial Report (ACFR) of the City of Albertville for the fiscal year ended
December 31, 2021.
This report consists of management's representations concerning the finances of the City of
Albertville. Management assumes full responsibility for the completeness and reliability of the
information contained in this report, based upon a comprehensive framework of internal control
standards that it has established for this purpose. Because the cost of internal control should
not exceed anticipated benefits,the objective is to provide reasonable, rather than absolute
assurance that the financial statements are free 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 by the public accounting firm of
Abdo. The goal of the independent audit was to provide reasonable assurance that the financial
statements of the City of Albertville for the fiscal year ended December 31, 2021,are free of any
material misstatements. Included within this report,Abdo. has issued an unqualified opinion on
the City of Albertville's financial statements for the year ended December 31, 2021.
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 northeastern portion
of Wright County, along the Interstate 94 corridor.
The City covers 4.56 square miles. The current population is approximately 7,896.
The City of Albertville operates under the council/administrator form of government. The
governing body consists 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. Not more than two Council
member's terms expire in any 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, among other things, passing
ordinances,adopting the budget,appointing committees, hiring the City Administrator,other staff
and appointing consultants.
The City provides its residents and businesses with a 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 with the Wright 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 partners with neighboring
communities to provide 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 June when the Finance Director prepares projected
revenues and expenses for the next year's draft budget. Upon review and revisions by the
Finance Director and City Administrator,the draft budget is reviewed by the Department Heads.
Department budget requests are compiled by the Finance Director and reviewed by both the
Finance Director and City Administrator. Integral to the budget process are staff meetings to
review the draft budget,which is then presented to the City Council. City Council and staff work
on the budget over the course of two to three budget workshops. Following Council direction and
public input,the preliminary budget is updated and brought back for City Council approval. City
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 during the year, it is brought to City Council
for approval.
Also, available within, are notes 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
Key factors affecting the City's economic condition and financial outlook include:
• Based on permit activity,the local economy is strong and continues to grow. A total of
837 building permits were issued in 2021 with a total valuation of$42,884,807. The
number of new housing units in 2021 was 51,with an average valuation of approximately
$296,488 per home.
• The State of Minnesota continues its expansion of Interstate 94 through the City of
Albertville.
• The City's bond rating,which has increased two times since 2002 and is currently an
AA3.
• The area school districts are highly desirable and driving new residential interest to the
area.
• A multi-family housing project including apartments and townhomes is under
construction
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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. Currently,there are a number of
commercial and industrial projects underway, including:
• Advanced Volumetric Alliance
• Fehn Companies Relocation and Expansion
• Scherer Bros. Lumber Relocation and Expansion
• Konz Crossing Retail
Major Initiatives
Maintenance and preservation of the City infrastructure and facilities is a priority for the City. In
2021,the City completed multiple infrastructure improvements related to streets, utilities,trails
and parks. Other major initiatives include:
• The I-94 West Corridor Coalition
• 2022 CSAH 37 Reconstruction
• 2022 Barthel Industrial Drive Reconstruction
• 2022 Street Overlay
• WWTP Biosolids Dewatering Improvements
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 is made 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.
It is intended for the current fund balance to meet or exceed the 35% minimum and
maintain a level of 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.
Property Taxes
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-wide total
net tax capacity equals the tax rate.
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Independent Audit
The financial statements were audited by Abdo, 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 31,2021. 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 Officers Association of the United States and Canada (GFOA) awarded
a Certificate of Achievement for Excellence in Financial Reporting to the City for its ACFR for the
fiscal year ended December 31, 2020.This is the tenth consecutive year the City has received this
prestigious award. In order to be awarded a Certificate of Achievement,a government must
publish an easily readable and efficiently organized ACFR,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 ACFR
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 Director Lannes and the entire city staff for their hard work and
dedication. I would like to recognize the CPA firm Abdo 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,
//�/ ell ;gv
Adam Nafstad
City Administrator/PWD/CE
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DO
Government Finance Officers Association
Certificate of
Achievement
for Excellence
in Financial
Reporting
Presented to
City of Albertville
Minnesota
For its Annual Comprehensive
Financial Report
For the Fiscal Year Ended
December 31, 2020
Executive Director/CEO
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City of Albertville, Minnesota
Elected and Appointed Officials
For the Year Ended December 31,2021
ELECTED
Name Title Term Expires
Jillian Hendrickson Mayor 12/31/22
Rob Olson Council Member 12/31/22
Walter Hudson Council Member 12/31/24
Bob Zagorski Council Member 12/31/22
Aaron Cocking Council Member 12/31/24
APPOINTED
Name Title
Adam Nafstad City Administrator
Tina Lannes Finance Director
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FINANCIAL SECTION
CITY OF ALBERTVILLE
ALBERTVILLE, MINNESOTA
FOR THE YEAR ENDED
DECEMBER 31, 2021
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ALDWOr4o AbdoSalutions.com
INDEPENDENT AUDITOR'S REPORT
Honorable Mayor and City Council
City of Albertville, Minnesota
Report on the Financial Statements
Opinions
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 December 31,2021, and the related notes to the financial statements,which collectively comprise the City's
basic financial statements as listed in the table of contents.
In our opinion,the financial statements referred to above present fairly, in all material respects,the respective financial
position of the governmental activities,the business-type activities, each major fund and the aggregate remaining fund
information of the City as of December 31, 2021,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.
Basis for Opinions
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. Our responsibilities under those standards are further described in the Auditor's Responsibilities for the
Audit of the Financial Statements section of our report. We are required to be independent of the city and to meet our
other ethical responsibilities, in accordance with the relevant ethical requirements relating to our audit. We believe that the
audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinions.
Management's Responsibility for the Financial Statements
Management is responsible for the preparation and fair presentation of these financial statements in accordance
with accounting principles generally accepted in the United States of America;this includes the design,
implementation,and maintenance of internal control relevant to the preparation and fair presentation of financial
statements that are free from material misstatement,whether due to fraud or error.
In preparing the financial statements, management is required to evaluate whether there are conditions or events,
considered in the aggregate,that raise substantial doubt about the City's ability to continue as a going concern for twelve
months beyond the financial statement date, including any currently known information that may raise substantial doubt
shortly thereafter.
Lighting the path forward
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Auditor's Responsibilities for the Audit of the Financial Statements
Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from
material misstatement,whether due to fraud or error, and to issue an auditor's report that includes our opinions.
Reasonable assurance is a high level of assurance but is not absolute assurance and therefore is not a guarantee that an
audit conducted in accordance with generally accepted auditing standards and Government Auditing Standards will
always detect a material misstatement when it exists. The risk of not detecting a material misstatement resulting from
fraud is higher than for one resulting from error, as fraud may involve collusion,forgery, intentional omissions,
misrepresentations, or the override of internal control. Misstatements are considered material if there is a substantial
likelihood that, individually or in the aggregate,they would influence the judgment made by a reasonable user based on
the financial statements.
In performing an audit in accordance with generally accepted auditing standards and Government Auditing Standards,we:
• Exercise professional judgment and maintain professional skepticism throughout the audit.
• Identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error
and design and perform audit procedures responsive to those risks. Such procedures include examining, on a test
basis,evidence regarding the amounts and disclosures in the financial statements.
• Obtain an understanding of internal control relevant to the audit 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, no such opinion is expressed.
• Evaluate the appropriateness of accounting policies used and the reasonableness of significant accounting
estimates made by management, as well as evaluate the overall presentation of the financial statements.
• Conclude whether, in our judgment,there are conditions or events,considered in the aggregate,that raise
substantial doubt about the City's ability to continue as a going concern for a reasonable period of time.
We are required to communicate with those charged with governance regarding, among other matters,the planned scope
and timing of the audit, significant audit findings,and certain internal control-related matters that we identified during the
audit.
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 23 and 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 92 be 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 assurance on the information
because the limited procedures do not provide us with sufficient evidence to express an opinion or provide any
assurance.
Abdo Solutions.com
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Other Information
Our audit was conducted for the purpose of forming opinions on the financial statements that collectively comprise the
City's basic financial statements. The introductory section, combining and individual fund financial statements and
schedules and statistical section are presented for purposes of additional analysis and are not a required part of the basic
financial statements.
The combining and individual fund financial statements and schedules are the responsibility of management and were
derived from and relate directly to the underlying accounting and other records used to prepare the basic financial
statements. Such information has been subjected to the auditing procedures applied in the audit of the basic financial
statements and certain additional procedures, including comparing and reconciling such information directly to the
underlying accounting and other records used to prepare the basic financial statements or to the basic financial
statements themselves,and other additional procedures in accordance with auditing standards generally accepted in the
United States of America. In our opinion,the combining and individual fund financial statements and schedules are fairly
stated, in all material respects, in relation to the basic financial statements as a whole.
The introductory section and statistical section have not been subjected to the auditing procedures applied in the audit of
the basic financial statements,and accordingly,we do not express an opinion or provide any assurance on them.
Other Reporting Required by Government Auditing Standards
In accordance with Government Auditing Standards,we have also issued our report dated April 29,2022,on our
consideration of the City's internal control over financial reporting and on our tests of its compliance with certain
provisions of laws, regulations,contracts, and grant agreements and other matters. The purpose of that report is solely 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 Standards in considering the
City's internal control over financial reporting and compliance.
4\tw
Abdo
Minneapolis, Minnesota
April 29,2022
AbdoSolutionsxom
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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, 2021.
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$55,629,754(net position). Of this amount,$20,167,212
(unrestricted net position) may be used to meet the City's ongoing obligations to citizens and creditors.
• The City's total net position increased $3,434,981. This increase is attributable to the governmental activities
increasing $2,081,353 due to development activity.
• As of the close of the current fiscal year,the City's governmental funds reported combined ending fund balances
of$11,841,835, an increase of$1,431,252 in comparison with the prior year.Approximately 63.0 percent of this
total amount,$7,458,898 is available for spending at the City's discretion but a portion has been assigned for
specific purposes.
• At the end of the current fiscal year, unassigned fund balance for the General fund was $2,178,219,or
56.2 percent of total General fund 2021 expenditures.
• The City's total debt decreased 11.8 percent during the current fiscal year.
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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
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Management's Basic Required
Discussion and Financial Supplementary
Analysis Statements Information
...............................
Govemment- Fund Dotes to the
wide Financial Financial Financial
Statements Statements Statements
Summary Detail
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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 Funds Proprietary Funds
Statements
Scope Entire City government The activities of the City that Activities the City operates
(except fiduciary funds) and are not proprietary or similar to private
the City's component units fiduciary,such as police, fire businesses, such as the
and parks water and sewer system
Required financial . Statement of Net . Balance Sheet . Statements of Net
statements Position . Statement of Revenues, Position
Statement of Activities Expenditures,and . Statements of Revenues,
Changes in Fund Expenses and Changes
Balances in Net Position
Statements of Cash
Flows
Accounting basis and Accrual accounting and Modified accrual accounting Accrual accounting and
measurement focus economic resources focus and current financial economic resources focus
resources focus
Type of asset/liability All assets and liabilities, Only assets expected to be All assets and liabilities,
information both financial and capital, used up and liabilities that both financial and capital,
and short-term and long- come due during the year or and short-term and long-
term soon thereafter; no capital term
assets included
Type of deferred All deferred Only deferred outflows of All deferred
outflows/inflows of outflows/inflows of resources expected to be outflows/inflows of
resources information resources, regardless of used up and deferred resources, regardless of
when cash is received or inflows of resources that when cash is received or
paid come due during the year or paid
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 information during 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
paid expenditures 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 statements are designed to provide readers with
a broad overview of the City's finances, in a manner similar to a private-sector business.
The statement of net position presents information on all of the City's assets and deferred outflows of resources, and
liabilities and deferred inflows of resources,with the difference reported as net position. Overtime, increases or
decreases in net position may serve as a useful indicator of whether the financial position of the City is improving or
deteriorating.
The statement of activities presents information showing how the City's net position changed during the most recent
fiscal year. All changes in net position are reported as soon as the underlying event giving rise to the change occurs,
regardless of the timing of related cash flows. Thus, revenues and expenses are reported in this statement for some items
that will only result in cash flows in future fiscal periods (e.g., uncollected taxes and earned but unused vacation leave).
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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 water and recycling.
The government-wide financial statements start on page 37 of this report.
Fund Financial Statements. A fund is a grouping of related accounts that is used to maintain control over resources that
have been segregated for specific activities or objectives. The City, like other state and local governments, uses fund
accounting to ensure and demonstrate compliance with finance-related legal requirements.All of the funds of the City can
be divided into three categories: governmental funds, proprietary funds and fiduciary funds.
Governmental Funds. Governmental funds are used to account for essentially the same functions reported as
governmental activities in the government-wide financial statements. However, unlike the government-wide financial
statements,governmental fund financial statements focus on near-term inflows and outflows of spendable resources,as
well as on balances of spendable resources available at the end of the fiscal year. Such information may be useful in
evaluating a government's near-term financing requirements.
Because the focus of governmental funds is narrower than that of the government-wide financial statements, it is useful
to compare the information presented for governmental funds with similar information presented for governmental
activities in the government-wide financial statements. By doing so, readers may better understand the long-term impact
by the government's near-term financing decisions. Both the governmental fund balance sheet and the governmental fund
statement of revenues,expenditures and changes in fund balances provide a reconciliation to facilitate this comparison
between governmental funds and governmental activities.
The City maintains 12 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 Reserve and Park fund -all of which are considered to be major funds. Data
from the other governmental funds are combined into a single,aggregated presentation. Individual fund data for each of
these non-major governmental funds is provided in the form of combining statements or schedules elsewhere in this
report.
The City adopts an annual appropriated budget for its General fund.A budgetary comparison statement has been
provided for the General fund to demonstrate compliance with this budget.
The basic governmental fund financial statements start on page 42 of this report.
Proprietary Funds.The City maintains one type of proprietary fund. Enterprise funds are used to report the same functions
presented as business-type activities in the government-wide financial statements. The City uses enterprise funds to
account for its sewer,water storm water and recycling operations.
Proprietary funds provide the same type of information as the government-wide financial statements,only in more detail.
The proprietary fund financial statements provide separate information for each of the enterprise funds.
The basic proprietary fund financial statements start on page 50 of this report.
Fiduciary Funds. Fiduciary funds are used to account for resources held for the benefit of parties outside the City.
Fiduciary funds are not reflected in the government-wide financial statements because the resources of those funds are
not available to support the City's own programs. The accounting used for fiduciary funds is much like that used for
proprietary funds.
The basic fiduciary fund financial statements are on page 56 of this report.
Notes to the Financial Statements.The notes provide additional information that is essential to a full understanding of
the data provided in the government-wide and fund financial statements. The notes to the financial statements start on
page 59 of this report.
26
Other Information.The combining statements referred to earlier in connection with non-major governmental funds are
presented following the notes to the financial statements. Combining and individual fund statements and schedules start
on page 104 of this report.
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 page 92 of this report.
Government-wide Financial Analysis
As noted earlier, net position may serve overtime 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$55,629,754 at the close of the most recent
fiscal year.
By far,the largest portion of the City's net position (53.5 percent) reflects its investment in capital assets (e.g., land,
buildings, machinery and equipment), less any related debt used to acquire those assets that is still outstanding.The City
uses these capital assets to provide services to citizens;consequently,these assets are not available for future spending.
Although the City's investment in its capital assets is reported net of related debt, it should be noted that the resources
needed to repay this debt must be provided from other sources, since the capital assets themselves cannot be used to
liquidate these liabilities.
City of Albertville's Summary of Net Position
Governmental Activities Business-type Activities
Increase Increase
2021 2020 (Decrease) 2021 2020 (Decrease)
Current and Other Assets $ 16,811,092 $ 13,609,640 $ 3,201,452 $ 12,310,577 $ 11,236,184 $ 1,074,393
Capital Assets 22,896,766 23,538,910 (642,144) 17,715,207 18,095,345 (380,138)
Total Assets 39,707,858 37,148,550 2,559,308 30,025,784 29,331,529 694,255
Deferred Outflows of Resources 766,154 466,062 300,092 216,095 70,295 145,800
Long-term Liabilities Outstanding 4,931,934 6,060,143 (1,128,209) 7,066,708 7,768,030 (701,322)
Other Liabilities 1,840,600 472,016 1,368,584 237,608 280,413 (42,805)
Total Liabilities 6,772,534 6,532,159 240,375 7,304,316 8,048,443 (744,127)
Deferred Inflows of Resources 758,984 221,312 537,672 250,303 19,749 230,554
Net Position
Net investment in capital assets 18,777,874 18,587,524 190,350 11,001,276 10,788,055 213,221
Restricted 5,683,392 5,120,588 562,804 - - -
Unrestricted 8,481,228 7,153,029 1,328,199 11,685,984 10,545,577 1,140,407
Total Net Position $ 32,942,494 $ 30,861,141 $ 2,081,353 $ 22,687,260 $ 21,333,632 $ 1,353,628
An additional portion of the City's net position, $5,683,392, represents resources that are subject to external restrictions
on how they may be used. The remaining balance of unrestricted net position $20,167,212 may be used to meet the City's
ongoing obligations to citizens and creditors.
At the end of the current fiscal year,the City is able to report positive balances in all three categories of net position, both
for the City as a whole,as well as for its separate governmental and business-type activities.
27
Governmental Activities. Governmental activities increased the City's net position $2,081,353. Significant changes from
the prior year are noted below:
• Governmental activities increasing $2,081,353 due to development activity.
City of Albertville's Changes in Net Position
Governmental Activities Business-type Activities
Increase Increase
2021 2020 (Decrease) 2021 2020 (Decrease)
Revenues
Program Revenues
Charges for services $ 2,511,133 $ 1,404,695 $ 1,106,438 $ 1,998,490 $ 1,802,145 $ 196,345
Operating grants and contributions 403,935 852,421 (448,486) 17,930 22,273 (4,343)
Capital grants and contributions 677,714 1,324,103 (646,389) 1,129,841 1,203,165 (73,324)
General Revenues
Taxes
Property taxes 4,086,522 3,976,317 110,205 - -
Tax increment 220,464 240,457 (19,993) - -
Grants and contributions
not restricted to
specific programs 115,426 126,418 (10,992) 47,495 - 47,495
Miscellaneous 9,795 - 9,795
Unrestricted investment earnings 11,191 190,441 (179,250) (14,965) 219,142 (234,107)
Total Revenues 8,036,180 8,114,852 (78,672) 3,178,791 3,246,725 (67,934)
Expenses
General government 1,154,441 1,058,803 95,638 - -
Public safety 1,879,989 1,941,340 (61,351)
Public works 1,689,856 3,185,369 (1,495,513)
Culture and recreation 871,722 882,232 (10,510)
Economic development 227,972 237,902 (9,930)
Interest on long-term debt 130,847 149,493 (18,646) - -
Sewer - - 1,067,137 1,111,727 (44,590)
Water 414,208 417,826 (3,618)
Storm water 225,386 290,418 (65,032)
Recycling - - 118,432 117,364 1,068
Total Expenses 5,954,827 7,455,139 (1,500,312) 1,825,163 1,937,335 (112,172)
Change in Net Position 2,081,353 659,713 - 1,353,628 1,309,390 -
Net Position,January 1 30,861,141 30,201,428 659,713 21,333,632 20,024,242 1,309,390
Net Position,December 31 $ 32,942,494 $ 30,861,141 $ 2,081,353 $ 22,687,260 $ 21,333,632 $ 1,353,628
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
$ UP
-
General Public Safety Public Works Culture and Economic Interest on
Government Recreation Development Long-term Debt
Expenses R Program Revenues
Revenues by Source - Governmental Activities
For the most part, increases in expenses closely paralleled inflation and growth in the demand for services.
Unrestricted
Investment 31.2%, Charges
0.1%, Earnings for Services
Miscellaneous
1.4%,Grants and
Contributions
Unrestricted
5.0%,Operating
Grants and
Contributions
8.4%,Capital
53.6%, Taxes 000 Grants and
Contributions
29
Business-type Activities. Business-type activities increased the City's net position by $1,353,628 mainly due to capital
contributions related to development activity.
Expenses and Program Revenues - Business-type Activities
$2,500,000 —
$2,000,000
$1,500,000 -
$1,000,000
$500,000 F
$_
Sewer Water Storm Water Recycling
■Expenses Program Revenues
Revenues by Source - Business-type Activities
63.8%, Charges
for Services
-0.5%, Investment
Earnings 0.6%, Operating
Grants and
Contributions,
36.1%, 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 funds is to provide information on near-term inflows,outflows
and balances of spendable resources. Such information is useful in assessing the City's financing requirements. In
particular, unassigned fund balance may serve as a useful measure of a government's net resources available for
spending at the end of the fiscal year.
As of the end of the current fiscal year,the City's governmental funds had combined ending fund balances of$11,841,835,
an increase of$1,431,252 in comparison with the prior year.Approximately 63.0 percent of this total amount, $7,458,898,
constitutes assigned and unassigned fund balance,which is available for spending at the City's discretion but assigned for
specific purposes. The remainder of fund balance$4,226,987 is not available for new spending because it is either 1)
nonspendable$136,098 or 2) restricted $4,090,889. There is also$155,950 committed for specific purposes.
The General fund is the chief operating fund of the City. At the end of the current year,the fund balance of the General
fund was$2,314,317.The fund balance of the City's General fund decreased $976,295 during the current fiscal year. This
decrease is due to a planned transfer out to the capital outlay reserve fund.
The Debt Service fund balance decreased $174,441 from the prior year for an ending fund balance of$3,073,238.The City
levies 105%of the following years debt service payment.
The Capital Outlay Reserve fund balance increased $1,669,008,for an ending fund balance of$5,634,162. This increase is
mainly due to a planned transfer in from the general fund.
The Park fund balance increased $896,207, for an ending fund balance of$896,436. The increase is related to park
dedication revenue.
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 position of the enterprise funds at the end of the year amounted to $11,685,984.The total increase in net
position for the funds was $1,353,628. 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 budget called for a decreased in fund balance of
$30,000.The actual activity of the General fund resulted in a decrease of$976,295. The general fund received more
revenues than budgeted in all areas except interest on investments.
Revenues were over budget by$928,513. Almost all revenue categories were over budget. Licenses and permits and
charges for services revenue sources had the largest variances of$274,565 and $451,572, respectively. This increase is
attributable to permit revenues,charges for services (buildings,fire calls, licenses and permits), fire aid, and lease
payments.
Expenditures were over budget by$414,989. General government was over budget by$141,573 and culture and recreation
was over budget by$266,534.
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, 2021,amounts to$40,611,973 (net of accumulated depreciation).This investment in capital assets
includes land, construction in progress, structures, improvements, machinery and equipment, park facilities, roads,
highways and bridges. The total decrease in the City's investment in capital assets for the current fiscal year was due to
depreciation.
Additional information on the City's capital assets can be found in Note 313 starting on page 71 of this report.
City of Albertville's Capital Assets
(Net of Depreciation)
Governmental Activities Business-type Activities
Increase Increase
2021 2020 (Decrease) 2021 2020 (Decrease)
Land $ 3,983,292 $ 3,983,292 $ $ 351,834 $ 351,834 $
Construction in Progress 1,446,771 845,292 601,479 - 7,964,615 (7,964,615)
Buildings 3,925,490 4,085,837 (160,347) 2,842,193 2,960,185 (117,992)
Infrastructure 9,905,165 10,945,050 (1,039,885) 14,425,793 6,748,009 7,677,784
Land Improvements 1,261,313 1,234,858 26,455 - - -
Machinery and Equipment 727,654 797,941 (70,287) 52,151 22,923 29,228
Vehicles 1,647,081 1,646,640 441 43,236 47,779 (4,543)
Total $ 22,896,766 $ 23,538,910 $ (642,144) $ 17,715,207 $ 18,095,345 $ (380,138)
Long-term Debt:At the end of the current fiscal year,the City had total bonded debt outstanding of$10,947,541. This
amount consists of general obligation special assessment, general obligation revenue bonds and revenue bonds. While
many of these bonds have their own revenue streams,they are backed by the full faith and credit of the City.
City of Albertville's Outstanding Debt
Governmental Activities Business-type Activities
Increase Increase
2021 2020 (Decrease) 2021 2020 (Decrease)
General Obligation Special
Assessment Bonds $ 4,233,610 $ 5,104,343 $ (870,733) $ 166,311 $ 242,617 $ (76,306)
General Obligation
Revenue Bonds - - - 6,547,620 7,064,673 (517,053)
Total $ 4,233,610 $ 5,104,343 $ (870,733) $ 6,713,931 $ 7,307,290 $ (593,359)
The City's total debt decreased $1,464,092 during the current fiscal year.This decrease is attributable to regularly
scheduled debt payments.
Minnesota statutes limit the amount of net general obligation debt a City may issue to 3 percent of the market value of
taxable property within the City. Net debt is debt payable solely from ad valorem taxes. The City's applicable debt does not
exceed the limit set forth in statute.
Additional information on the City's long-term debt can be found in Note 3D starting on page 73 of 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. Multi-family housing interest is strong.
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.
State and/or Federal funds received due to the COVID 19 pandemic are expected to be used for economic development
and/or capital improvements.
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.
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34
GOVERNMENT-WIDE FINANCIAL STATEMENTS
CITY OF ALBERTVILLE
ALBERTVILLE, MINNESOTA
FOR THE YEAR ENDED
DECEMBER 31, 2021
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36
City of Albertville, Minnesota
Statement of Net Position
December 31,2021
Governmental Business-type
Activities Activities Total
Assets
Cash and temporary investments $ 12,162,455 $ 11,995,197 $ 24,157,652
Receivables
Interest 47,489 - 47,489
Taxes 32,886 - 32,886
Accounts 69,785 194,335 264,120
Notes-due within one year 73,148 - 73,148
Notes-due in more than one year 731,484 - 731,484
Special assessments 954,076 80,995 1,035,071
Due from other governments 766,144 11,776 777,920
Prepaid items 85,098 28,274 113,372
Equity interest in joint venture 224,132 - 224,132
Net pension asset 392,442 392,442
Land held for resale 1,271,953 - 1,271,953
Capital assets
Land and construction in progress 5,430,063 351,834 5,781,897
Depreciable assets,net of accumulated depreciation 17,466,703 17,363,373 34,830,076
Total Assets 39,707,858 30,025,784 69,733,642
Deferred Outflows of Resources
Loss on refunding bonds 114,718 - 114,718
Deferred pension resources 651,436 216,095 867,531
Total Deferred Outflows of Resources 766,154 216,095 982,249
Liabilities
Accounts and contracts payable 174,087 110,385 284,472
Escrows payable 1,242,963 - 1,242,963
Due to other governments 1,893 49,933 51,826
Accrued interest payable 23,724 56,818 80,542
Accrued salaries payable 33,489 20,472 53,961
Unearned revenue 364,444 - 364,444
Noncurrent liabilities
Due within one year
Long-term liabilities 968,778 656,784 1,625,562
Due in more than one year
Long-term liabilities 3,388,536 6,132,860 9,521,396
Net pension liability 574,620 277,064 851,684
Total Liabilities 6,772,534 7,304,316 14,076,850
Deferred Inflows of Resources
Deferred pension resources 758,984 250,303 1,009,287
Net Position
Net investment in capital assets 18,777,874 11,001,276 29,779,150
Restricted for
Debt service 4,665,741 - 4,665,741
Park dedication 896,436 896,436
Tax increment 121,215 - 121,215
Unrestricted 8,481,228 11,685,984 20,167,212
Total Net Position $ 32,942,494 $ 22,687,260 $ 55,629,754
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 31,2021
Program Revenues
Operating Capital Grants
Charges for Grants and and
Functions/Programs Expenses Services Contributions Contributions
Governmental Activities
General government $ 1,154,441 $ 878,311 $ 190,600 $ 81,717
Public safety 1,879,989 435,005 174,593 -
Public works 1,689,856 4,250 16,763 595,897
Culture and recreation 871,722 1,193,567 7,896 100
Economic development 227,972 - 14,083 -
Interest on long-term debt 130,847 - - -
Total Governmental Activities 5,954,827 2,511,133 403,935 677,714
Business-type Activities
Sewer 1,067,137 1,147,984 6,860 893,978
Water 414,208 452,529 - 233,074
Storm Water 225,386 281,058 - 2,105
Recycling 118,432 116,919 11,070 684
Total Business-type Activities 1,825,163 1,998,490 17,930 1,129,841
Total $ 7,779,990 $ 4,509,623 $ 421,865 $ 1,807,555
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 (loss)
Miscellaneous
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
Governmental Business-type
Activities Activities Total
$ (3,813) $ $ (3,813)
(1,270,391) (1,270,391)
(1,072,946) (1,072,946)
329,841 329,841
(213,889) (213,889)
(130,847) (130,847)
(2,362,045) - (2,362,045)
981,685 981,685
271,395 271,395
57,777 57,777
10,241 10,241
1,321,098 1,321,098
(2,362,045) 1,321,098 (1,040,947)
3,614,097 - 3,614,097
472,425 472,425
220,464 - 220,464
115,426 47,495 162,921
11,191 (14,965) (3,774)
9,795 - 9,795
4,443,398 32,530 4,475,928
2,081,353 1,353,628 3,434,981
30,861,141 21,333,632 52,194,773
$ 32,942,494 $ 22,687,260 $ 55,629,754
The notes to the financial statements are an integral part of this statement.
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40
FUND FINANCIAL STATEMENTS
CITY OF ALBERTVILLE
ALBERTVILLE, MINNESOTA
FOR THE YEAR ENDED
DECEMBER 31, 2021
41
City of Albertville, Minnesota
Balance Sheet
Governmental Funds
December 31,2021
Capital
Debt Outlay
General Service Reserve
Assets
Cash and temporary investments $ 3,374,599 $ 1,489,264 $ 5,728,700
Receivables
Taxes 32,886 - -
Accounts 69,785 - -
Special assessments 73,426 811,595 69,055
Interest 43,198 4,291 -
Notes - 804,632 -
Advances to other funds - 358,730 -
Due from other governments - - 766,144
Prepaid items 85,098 - -
Land held for resale 51,000 1,220,953 -
Total Assets $ 3,729,992 $ 4,689,465 $ 6,563,899
Liabilities
Accounts and contracts payable $ 52,949 $ - $ 94,538
Escrows payable 1,242,963 - -
Advances from other funds - - -
Due to other governments 1,893 - -
Accrued salaries payable 33,489 -
Unearned revenue - - -
Total Liabilities 1,331,294 - 94,538
Deferred Inflows of Resources
Unavailable revenue-property taxes 14,404 - -
Unavailable revenue-special assessments 69,977 811,595 69,055
Unavailable revenue-notes/intergovernmental - 804,632 766,144
Total Deferred Inflows of Resources 84,381 1,616,227 835,199
Fund Balances
Nonspendable 136,098 - -
Restricted - 3,073,238 -
Committed - - -
Assigned - - 5,634,162
Unassigned 2,178,219 - -
Total Fund Balances 2,314,317 3,073,238 5,634,162
Total Liabilities, Deferred Inflows
of Resources and Fund Balances $ 3,729,992 $ 4,689,465 $ 6,563,899
The notes to the financial statements are an integral part of this statement.
42
Other Total
Park Governmental Governmental
Fund Funds Funds
$ 896,436 $ 673,456 $ 12,162,455
- - 32,886
- - 69,785
- - 954,076
- - 47,489
- - 804,632
- - 358,730
- - 766,144
- - 85,098
- - 1,271,953
$ 896,436 $ 673,456 $ 16,553,248
$ - $ 26,600 $ 174,087
- 1,242,963
358,730 358,730
- - 1,893
- - 33,489
- 364,444 364,444
- 749,774 2,175,606
- - 14,404
- - 950,627
- - 1,570,776
- - 2,535,807
- - 136,098
896,436 121,215 4,090,889
- 155,950 155,950
- 5,634,162
- (353,483) 1,824,736
896,436 (76,318) 11,841,835
$ 896,436 $ 673,456 $ 16,553,248
The notes to the financial statements are an integral part of this statement.
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44
City of Albertville, Minnesota
Reconciliation of the Balance Sheet
to the Statement of Net Position
December 31,2021
Amounts reported for the governmental activities in the statement of net position are different because
Total Fund Balances-Governmental $ 11,841,835
Governmental funds do not report an asset for equity interest in the joint venture 224,132
Capital assets used in governmental activities are not financial
resources and therefore are not reported as assets in governmental funds.
Cost of capital assets 50,324,167
Less: accumulated depreciation (27,427,401)
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 (123,704)
Bond principal payable (4,233,610)
Net pension liability (574,620)
Deferred outflows of resources, loss on refunding bond 114,718
Some receivables are not available soon enough to pay for the current period's expenditures,
and therefore are deferred in the funds.
Special assessments 950,627
Taxes 14,404
Notes/intergovernmental 1,570,776
Governmental funds do not report long-term amounts related to pension.
Deferred outflows of pension resources 651,436
Deferred inflows of pension resources (758,984)
Net pension asset 392,442
Governmental funds do not report a liability for accrued interest until due and payable. (23,724)
Total Net Position -Governmental Activities $ 32,942,494
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 31,2021
Capital
Debt Outlay
General Service Reserve
Revenues
Taxes $ 2,253,205 $ 525,425 $ 1,324,744
Licenses and permits 403,265 - -
Intergovernmental 286,554 15,552
Charges for services 1,231,359 -
Fines and forfeitures 500 - -
Special assessments 15,416 169,945 46,716
Interest on investments (loss) 6,565 12,925 (5,928)
Miscellaneous 159,776 78,376 24,335
Total Revenues 4,356,640 786,671 1,405,419
Expenditures
Current
General government 979,183 - 42,288
Public safety 1,717,622 - -
Publicworks 411,866 7,552
Culture and recreation 725,853 -
Economic development 38,592 -
Capital outlay
General government - 870
Public safety 61,678
Public works 893,153
Culture and recreation 196,178
Economic development - 24,000
Debt service
Principal 864,000 -
Interest and other - 89,560 -
Total Expenditures 3,873,116 961,112 1,218,167
Excess (Deficiency) of Revenues
Over(Under) Expenditures 483,524 (174,441) 187,252
Other Financing Sources (Uses)
Transfers in 171,937 1,631,756
Transfers out (1,631,756) (150,000)
Total Other Financing Sources (Uses) (1,459,819) 1,481,756
Net Change in Fund Balances (976,295) (174,441) 1,669,008
Fund Balances,January 1 3,290,612 3,247,679 3,965,154
Fund Balances, December 31 $ 2,314,317 $ 3,073,238 $ 5,634,162
The notes to the financial statements are an integral part of this statement.
46
Other Total
Park Governmental Governmental
Fund Funds Funds
$ $ 220,464 $ 4,323,838
- 403,265
302,106
900,200 2,131,559
- 500
232,077
(1,166) (1,205) 11,191
- - 262,487
899,034 219,259 7,667,023
- - 1,021,471
1,717,622
419,418
- 725,853
165,380 203,972
- 870
61,678
- 893,153
2,827 199,005
- 24,000
- 864,000
- 15,169 104,729
2,827 180,549 6,235,771
896,207 38,710 1,431,252
- - 1,803,693
(21,937) (1,803,693)
- (21,937) -
896,207 16,773 1,431,252
229 (93,091) 10,410,583
$ 896,436 $ (76,318) $ 11,841,835
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 31,2021
Amounts reported for governmental activities in the statement of activities are different because
Total Change Is Fund Balances $ 1,431,252
Governmental funds do not report income or loss in a joint venture. 12,305
Capital outlays are reported in governmental funds as expenditures. However,in the statement of
activities,the cost of those assets is allocated over the estimated useful lives as depreciation expense.
Capital outlays 946,443
Depreciation expense (1,588,587)
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 repayments 864,000
Amortization of loss on refunding and premium (31,506)
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. 5,388
Long-term pension activity is not reported in governmental funds.
Pension expense 54,836
Pension revenue 2,784
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 30,370
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 (322,076)
Taxes (16,852)
Intergovernmental 692,996
Change in Net Position-Governmental Activities $ 2,081,353
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 31,2021
General
Budgeted Amounts Actual Variance with
Original Final Amounts Final Budget
Revenues
Taxes $ 2,247,305 $ 2,247,305 $ 2,253,205 $ 5,900
Licenses and permits 128,700 128,700 403,265 274,565
Intergovernmental 232,335 232,335 286,554 54,219
Charges for services 779,787 779,787 1,231,359 451,572
Fines and forfeitures - - 500 500
Special assessments - - 15,416 15,416
Interest on investments 25,000 25,000 6,565 (18,435)
Miscellaneous 15,000 15,000 159,776 144,776
Total Revenues 3,428,127 3,428,127 4,356,640 928,513
Expenditures
Current
General government 837,610 837,610 979,183 (141,573)
Public safety 1,655,156 1,655,156 1,717,622 (62,466)
Public works 456,042 456,042 411,866 44,176
Culture and recreation 459,319 459,319 725,853 (266,534)
Economic development 50,000 50,000 38,592 11,408
Total Expenditures 3,458,127 3,458,127 3,873,116 (414,989)
Excess (Deficiency) of Revenues
Over(Under) Expenditures (30,000) (30,000) 483,524 513,524
Other Financing Sources (Uses)
Transfers in - - 171,937 171,937
Transfers out - - (1,631,756) (1,631,756)
Total Other Financing
Sources (Uses) - - (1,459,819) (1,459,819)
Net Change in Fund Balances (30,000) (30,000) (976,295) (946,295)
Fund Balances,January 1 3,290,612 3,290,612 3,290,612 -
Fund Balances, December 31 $ 3,260,612 $ 3,260,612 $ 2,314,317 $ (946,295)
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 31,2021
Business-type Activities-Enterprise Funds
Sewer Water Storm Water Recycling Total
Assets
Current Assets
Cash and temporary investments $ 8,626,945 $ 2,106,393 $ 1,202,466 $ 59,393 $ 11,995,197
Receivables
Accounts 86,573 85,061 20,625 2,076 194,335
Delinquent special assessments 846 1,104 249 - 2,199
Special assessments,current portion 2,943 4,225 1,301 530 8,999
Due from other governments 6,286 - - 5,490 11,776
Prepaid items 20,006 6,535 1,733 - 28,274
Total Current Assets 8,743,599 2,203,318 1,226,374 67,489 12,240,780
Noncurrent Assets
Special assessments,net of current portion 55,870 9,859 3,955 113 69,797
Capital Assets
Land 205,722 - 146,112 - 351,834
Buildings 4,706,359 13,330 - 4,719,689
Infrastructure 16,949,086 1,401,010 1,509,297 19,859,393
Machinery and equipment 218,515 142,881 - 361,396
Vehicles 186,363 216,921 69,177 472,461
Less:Accumulated depreciation (6,809,627) (818,332) (421,607) (8,049,566)
Net Capital Assets 15,456,418 955,810 1,302,979 17,715,207
Total Noncurrent Assets 15,512,288 965,669 1,306,934 113 17,785,004
Total Assets 24,255,887 3,168,987 2,533,308 67,602 30,025,784
Deferred Outflows of Resources
Deferred pension resources 86,198 78,513 51,384 - 216,095
The notes to the financial statements are an integral part of this statement.
50
City of Albertville, Minnesota
Statement of Net Position(Continued)
Proprietary Funds
December 31,2021
Business-type Activities-Enterprise Funds
Sewer Water Storm Water Recycling Total
Liabilities
Current Liabilities
Accounts and contracts payable $ 35,701 $ 74,517 $ 101 $ 66 $ 110,385
Due to other governments - 49,933 - - 49,933
Accrued interest payable 54,685 758 1,375 - 56,818
Accrued salaries payable 6,345 8,982 4,910 235 20,472
Compensated absences payable,current portion 25,553 25,553 5,678 - 56,784
Bonds payable,current portion 510,900 9,100 80,000 - 600,000
Total Current Liabilities 633,184 168,843 92,064 301 894,392
Noncurrent Liabilities
Compensated absences payable 8,518 8,518 1,893 - 18,929
Bonds payable 5,986,020 41,600 86,311 6,113,931
Net pension liability 69,700 139,879 67,485 277,064
Total Noncurrent Liabilities 6,064,238 189,997 155,689 - 6,409,924
Total Liabilities 6,697,422 358,840 247,753 301 7,304,316
Deferred Inflows of Resources
Deferred pension resources 108,875 82,507 58,921 - 250,303
Net Position
Net investment in capital assets 8,959,498 905,110 1,136,668 - 11,001,276
Unrestricted 8,576,290 1,901,043 1,141,350 67,301 11,685,984
Total Net Position $ 17,535,788 $ 2,806,153 $ 2,278,018 $ 67,301 $ 22,687,260
The notes to the financial statements are an integral part of this statement.
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52
City of Albertville, Minnesota
Statement of Revenues, Expenses and
Changes in Net Position
Proprietary Funds
For the Year Ended December 31,2021
Business-type Activities-Enterprise Funds
Sewer Water Storm Water Recycling Total
Operating Revenues
Charges for services $ 927,848 $ 427,597 $ 280,898 $ 116,911 $ 1,753,254
Operating Expenses
Personal services 297,937 211,124 154,672 8,028 671,761
Supplies 30,206 21,776 458 229 52,669
Professional services 28,443 11,671 24,679 2,950 67,743
Utilities 101,355 66,685 - - 168,040
Insurance 15,586 7,793 1,559 24,938
Repairs and maintenance 31,732 26,163 - 57,895
Remittance to Joint Powers Board - (4,916) - (4,916)
Depreciation 355,372 39,558 37,140 - 432,070
Other charges 59,177 32,513 4,759 107,225 203,674
Total Operating Expenses 919,808 412,367 223,267 118,432 1,673,874
Operating Income (Loss) 8,040 15,230 57,631 (1,521) 79,380
Nonoperating Revenues (Expenses)
Property taxes 219,679 - - - 219,679
Interest income(loss) (11,306) (2,873) (706) (80) (14,965)
Intergovernmental 19,079 28,416 - 11,070 58,565
Interest expense and other (147,329) (1,841) (2,119) - (151,289)
Other income 7,317 24,932 160 8 32,417
Total Nonoperating
Revenues (Expenses) 87,440 48,634 (2,665) 10,998 144,407
Income(Loss) Before
Contributions 95,480 63,864 54,966 9,477 223,787
Contributions
Capital contributions 893,978 233,074 2,105 684 1,129,841
Change in Net Position 989,458 296,938 57,071 10,161 1,353,628
Net Position,January 1 16,546,330 2,509,215 2,220,947 57,140 21,333,632
Net Position, December 31 $ 17,535,788 $ 2,806,153 $ 2,278,018 $ 67,301 $ 22,687,260
The notes to the financial statements are an integral part of this statement.
53
City of Albertville, Minnesota
Statement of Cash Flows
Proprietary Funds
For the Year Ended December 31,2021
Business-type Activities-Enterprise Funds
Sewer Water Storm Water Recycling Totals
Cash Flows from Operating Activities
Receipts from customers and users $ 917,278 $ 425,640 $ 278,658 $ 116,527 $ 1,738,103
Other receipts and payments,net 7,317 24,932 32,304 - 64,553
Payments to suppliers (266,636) (133,759) (43,756) (121,516) (565,667)
Payments to employees (309,954) (217,090) (157,029) (8,006) (692,079)
Net Cash Provided(Used) by
Operating Activities 348,005 99,723 110,177 (12,995) 544,910
Cash Flows from Noncapital Financing Activities
Intergovernmental receipts 19,079 28,416 - 11,070 58,565
Tax receipts 219,679 - - 219,679
Net Cash Provided by
Noncapital Financing Activities 238,758 28,416 11,070 278,244
Cash Flows from Capital and
Related Financing Activities
Acquisition of capital assets (102,774) - - - (102,774)
Capital contributions 906,347 243,148 7,788 684 1,157,967
Interest paid on bonds (157,841) (1,954) (4,050) - (163,845)
Principal paid on bonds (500,900) (9,100) (75,000) (585,000)
Net Cash Provided(Used) by
Capital and Related Financing Activities 144,832 232,094 (71,262) 684 306,348
Cash Flows from Investing Activities
Interest received on investments(loss) (11,306) (2,873) (706) (80) (14,965)
Net Increase(Decrease) in
Cash and Cash Equivalents 720,289 357,360 38,209 (1,321) 1,114,537
Cash and Cash Equivalents,January 1 7,906,656 1,749,033 1,164,257 60,714 10,880,660
Cash and Cash Equivalents,December 31 $ 8,626,945 $ 2,106,393 $ 1,202,466 $ 59,393 $ 11,995,197
The notes to the financial statements are an integral part of this statement.
54
City of Albertville, Minnesota
Statement of Cash Flows(Continued)
Proprietary Funds
For the Year Ended December 31,2021
Business-type Activities-Enterprise Funds
Sewer Water Storm Water Recycling Totals
Reconciliation of Operating Income(Loss)to
Net Cash Provided(Used)by Operating Activities
Operating income(loss) $ 8,040 $ 15,230 $ 57,631 $ (1,521) $ 79,380
Adjustments to reconcile operating income(loss)to
net cash provided(used)by operating activities
Other income related to operations 7,317 24,932 160 8 32,417
Depreciation 355,372 39,558 37,140 - 432,070
(Increase)decrease in assets/deferred outflows of resources
Accounts receivable (10,382) (1,773) (2,156) (1,194) (15,505)
Prepaids (8,421) (743) (575) (9,739)
Due from other governments (4,325) 11,391 - (2,294) 4,772
Special assessments receivable (188) (184) (84) 802 346
Note receivable - - 32,144 - 32,144
Deferred pension resources (64,459) (46,839) (34,502) (145,800)
Increase(decrease)in liabilities/deferred inflows of resources
Accounts payable 12,609 18,430 (11,726) (8,818) 10,495
Due to other governments - (1,152) - - (1,152)
Accrued salaries payable 1,049 1,113 707 22 2,891
Compensated absences payable (5,872) (5,872) (1,305) - (13,049)
Net pension liability (45,421) (27,859) (21,634) (94,914)
Deferred pension resources 102,686 73,491 54,377 230,554
Net Cash Provided(Used) by
Operating Activities $ 348,005 $ 99,723 $ 110,177 $ (12,995) $ 544,910
Schedule of Noncash Capital and
Financing Activities
Capital assets purchased on account $ 8,688 $ 8,688 $ $ $ 17,376
Amortization of bond premiums 7,053 - 1,306 8,359
The notes to the financial statements are an integral part of this statement.
55
City of Albertville, Minnesota
Statement of Fiduciary Net Position
Fiduciary Funds
December 31,2021
Custodial
Funds
Assets
Cash and temporary investments $ 486,519
Accounts receivable 26,069
Inventory 2,196
Total Assets 514,784
Liabilities
Accounts payable 29,288
Accrued wages 9,989
Total Liabilities 39,277
Net Position
Restricted for organizations and other governments $ 475,507
The notes to the financial statements are an integral part of this statement.
56
City of Albertville, Minnesota
Statement of Changes in Fiduciary Net Position
Fiduciary Funds
For the Year Ended December 31,2021
Custodial
Funds
Additions
Contributions
Charges for services $ 677,552
Donations 22,400
Concessions 31,661
Total Contributions 731,613
Investment earnings (loss)
Interest,dividends and other (469)
Miscellaneous 22,906
Total Additions 754,050
Deductions
Professional services 329,463
Supplies 16,485
Utilities 209,886
Insurance 13,589
Repairs and Maintenance 86,367
Capital Outlay 7,905
Miscellaneous 20,722
Total Deductions 684,417
Net Increase (Decrease) in Fiduciary Net Position 69,633
Net Position,January 1 405,874
Net Position, December 31 $ 475,507
The notes to the financial statements are an integral part of this statement.
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58
City of Albertville, Minnesota
Notes to the Financial Statements
December 31, 2021
Note 1: Summary of Significant Accounting Policies
A. Reporting Entity
The City of Albertville, Minnesota (the City) operates under the"Optional Plan A" form of government as defined in the
State of Minnesota statutes. Under this plan,the government of the City is directed by a City Council composed of an
elected Mayor and four elected City Council members. The City Council exercises legislative authority and determines all
matters of policy. The City Council appoints personnel responsible for the proper administration of all affairs relating to
the City. The City has considered all potential units for which it is financially accountable, and other organizations for
which the nature and significance of their relationship with the City are such that exclusion would cause the City's
financial statements to be misleading or incomplete.The Governmental Accounting Standards Board (GASB) has set
forth criteria to be considered in determining financial accountability. These criteria include appointing a voting majority
of an organization's governing body, and (1)the ability of the primary government to impose its will on that organization
or(2)the potential for the organization to provide specific benefits to, or impose specific financial burdens on the primary
government.
Blended Component Unit
The Albertville Economic Development Authority(EDA) is a legal separate entity created to carry out economic
development activities. The EDA is governed by five members,which consists of the City Council and the operational
responsibility for the EDA rests with the management of the City. The criterion that results in the EDA being reported as a
blended component unit include 1)the five board members are members of the City Council and 2)the operational
responsibility of the EDA rests with the management of the City.The EDA does not issue separate financial statements
and are included in the financial section of this report.
B. Government-wide and 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 reported as program revenues include 1) charges to customers or applicants who purchase, use,or directly
benefit from goods,services or privileges provided by a given function or segment and 2) grants and contributions that
are restricted to meeting the operational or capital requirements of a particular function or segment.Taxes and other
items not properly included among program revenues are reported instead as general revenues.
Separate financial statements are provided for governmental funds, proprietary funds and fiduciary funds. Major
individual governmental funds and major individual enterprise funds are reported as separate columns in the fund
financial statements.
C. Measurement Focus, Basis of Accounting and Financial Statement Presentation
The government-wide financial statements are reported using the economic resources measurement focus and the
accrual basis of accounting, as are the proprietary fund financial statements. Revenues are recorded when earned and
expenses are recorded when a liability is incurred, regardless of the timing of related cash flows. Property taxes are
recognized as revenues in the year for which they are levied. Grants and similar items are recognized as revenue as soon
as all eligibility requirements imposed by the provider have been met.
59
City of Albertville, Minnesota
Notes to the Financial Statements
December 31, 2021
Note 1: Summary of Significant Accounting Policies (Continued)
Governmental fund financial statements are reported using the current financial resources measurement focus and the
modified accrual basis of accounting. Revenues are recognized as soon as they are both measurable and available.
Revenues are considered to be available when they are collectible within the current period or soon enough thereafter to
pay liabilities of the current period. For this purpose,the City considers revenues to be available if they are collected within
60 days of the end of the current fiscal period. Expenditures generally are recorded when a liability is incurred,as under
accrual accounting. However, debt service expenditures,as well as expenditures related to compensated absences and
claims and judgments, are recorded only when payment is due.
Property taxes,franchise taxes, licenses and interest associated with the current fiscal period are all considered to be
susceptible to accrual and so have been recognized as revenues of the current fiscal period. Only the portion of special
assessments receivable due within the current fiscal period is considered to be susceptible to accrual as revenue of the
current period. All other revenue items are considered to be measurable and available only when cash is received by the
City.
Revenue resulting from exchange transactions, in which each party gives and receives essentially equal value, is recorded
on the accrual basis when the exchange takes place. On a modified accrual basis, revenue is recorded in the year in which
the resources are measurable and become available.
Non-exchange transactions, in which the City receives value without directly giving equal value in return, include property
taxes,grants,entitlement and donations. On an accrual basis, revenue from property taxes is recognized in the year for
which the tax is levied. Revenue from grants,entitlements and donations is recognized in the year in which all eligibility
requirements have been satisfied. Eligibility requirements include timing requirements,which specify the year when the
resources are required to be used or the year when use is first permitted, matching requirements, in which the City must
provide local resources to be used for a specified purpose, and expenditure requirements, in which the resources are
provided to the City on a reimbursement basis. On a modified accrual basis, revenue from non-exchange transactions
must also be available before it can be recognized.
Unearned revenue arises when assets are recognized before revenue recognition criteria have been satisfied. Grants and
entitlements received before eligibility requirements are met are also recorded as unearned revenue.
The preparation of financial statements in conformity with accounting principles generally accepted in the United States
of America requires management to make estimates and assumptions that affect certain reported amounts and
disclosures. Accordingly, actual results could differ from those estimates.
The City reports the following major governmental funds:
The General fund is the City's primary operating fund. It accounts for all financial resources of the City, except those
required to be accounted for in another fund.
The Debt Service fund accounts for the accumulation of resources and payment of bond principal and interest on
long-term general obligation debt of governmental funds.
The Capital Outlay Reserve fund accounts for the accumulation of resources necessary to fund future capital
improvements and equipment purchases.
The Park fund accounts for the accumulation of resources and payments made for the construction of park
improvements. Park dedication fees,contributions and donations as well as interest are the main financing sources.
60
City of Albertville, Minnesota
Notes to the Financial Statements
December 31, 2021
Note 1: Summary of Significant Accounting Policies (Continued)
The City reports the following major proprietary funds:
The Sewer fund accounts for the activities of the City's sewage collection utility.
The Water fund accounts for the activities of the City's water utility.
The Storm Water fund accounts for the activities of the City's storm drainage utility.
The Recycling fund accounts for the activities of the City's recycling operations.
Additionally,the City reports the following fund types:
Fiduciary Funds
Custodial funds are used to report fiduciary activities that are not required to be reported in pension (and other
employee benefit)trust funds, investment trust 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 nonoperating items. Operating revenues and
expenses generally result from providing services and producing and delivering goods in connection with a proprietary
fund's principal ongoing operations.The principal operating revenues of the City enterprise funds are charges to
customers for sales and services. Operating expenses for enterprise funds include the cost of sales and services,
administrative expenses and depreciation on capital assets. All revenues and expenses not meeting this definition are
reported as nonoperating revenues and expenses.
D. Assets, Deferred Outflows of Resources, Liabilities, Deferred Inflows of Resources and 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 and cash equivalents for purposes of
the statement of cash flows.
Cash balances from all funds are pooled and invested,to the extent available, in certificates of deposit and other
authorized investments. Earnings from such investments are allocated on the basis of applicable participation by each of
the funds.
61
City of Albertville, Minnesota
Notes to the Financial Statements
December 31, 2021
Note 1: Summary of Significant Accounting Policies (Continued)
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 maturity not exceeding 13 months and (i) rated in the highest
category by a national bond rating service or(ii) enrolled in the credit enhancement program pursuant to statute
section 126C.55.
6. Bankers' acceptances of United States banks 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.
The City has the following recurring fair value measurements as of December 31, 2021:
• Brokered Certificates of Deposit of$5,665,984 are valued using quoted market prices (Level 2 inputs)
• Municipal Bonds of $3,299,533 are values using a matrix pricing model (Level 2 inputs)
• Governmental Securities of $1,973,816 are values using a matrix pricing model (Level 1 inputs)
62
City of Albertville, Minnesota
Notes to the Financial Statements
December 31, 2021
Note 1: Summary of Significant Accounting Policies (Continued)
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
withdrawals from 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 above which 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 SI PC or other supplemental insurance as of December 31, 2021. 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 of loss attributed to the magnitude of a
government's investment in a single issuer. In accordance with the City's investment policy,the City diversifies its
investment portfolio to eliminate the risk of loss resulting from over-concentration of assets in a specific maturity,
a specific issuer or a specific class of securities. The maturities selected shall 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.
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.
63
City of Albertville, Minnesota
Notes to the Financial Statements
December 31, 2021
Note 1: Summary of Significant Accounting Policies (Continued)
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.
Special Assessments
Special assessments represent the financing for public improvements paid for by benefiting property owners.These
assessments are recorded as receivables upon certification to the County. Special assessments are recognized as
revenue when they are received in cash or within 60 days after year end.All governmental fund special assessments
receivable are offset by a deferred inflow of resources in 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 nonspendable or 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) method and inventories
of supplies are reported at cost. Inventories in governmental funds are recorded as expenditures when consumed rather
than when purchased.
64
City of Albertville, Minnesota
Notes to the Financial Statements
December 31, 2021
Note 1: Summary of Significant Accounting Policies (Continued)
Capital Assets
Capital assets,which include property, plant,equipment and infrastructure assets (e.g., roads, bridges, sidewalks,and
similar items) are reported in the applicable governmental or business-type activities columns in the government-wide
financial statements. Capital assets are defined by the City as assets with an estimated useful life of more than one year
and an initial individual cost of more than the following:
Category Cost
Land/Land Improvements $ 10,000
Other Improvements 25,000
Infrastructure 100,000
Buildings 25,000
Building Improvements 25,000
Vehicles 5,000
Other Equipment 5,000
Intangible Assets 10,000
The City reports infrastructure assets on a network and subsystem basis.Accordingly,the amounts spent for the
construction or acquisition of infrastructure assets are capitalized and reported in the government-wide financial
statements regardless of their amount.
In the case of initial capitalization of general infrastructure assets (i.e.,those reported by governmental activities)the City
chose to include items dating back to June 30, 1980. The City was able to estimate the historical cost for the initial
reporting of these assets through back trending (i.e., estimating the current replacement cost of the infrastructure to be
capitalized and using an appropriate price-level index to deflate the cost to the acquisition year or estimated acquisition
year).As the City constructs or acquires capital assets each period, including infrastructure assets,they are capitalized
and reported at historical cost. The reported value excludes normal maintenance and repairs which are essentially
amounts spent in relation to capital assets that do not increase the capacity or efficiency of the item or extend its useful
life beyond the original estimate. In the case of donations,the City values these capital assets at the acquisition value of
the item at the date of its donation.
Property, plant and equipment will be depreciated using the straight-line method over the following estimated useful lives:
Useful Lives
Assets in Years
Land Improvements 5 to 30
Infrastructure 15 to 50
Buildings 15 to 40
Vehicles 3 to 15
Other Equipment 3 to 20
65
City of Albertville, Minnesota
Notes to the Financial Statements
December 31, 2021
Note 1: Summary of Significant Accounting Policies (Continued)
Deferred Outflows of Resources
In addition to assets,the statement of net position will sometimes report a separate section for deferred outflows of
resources. This separate financial statement element, deferred outflows of resources, represents a consumption of net
position that applies to a future period(s) and so will not be recognized as an outflow of resources (expense/expenditure)
until then. The City has two items that qualify for reporting in this category.The loss on refunding bonds reported in the
government-wide statement of net position. A loss on 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 Albertville Fire Relief Association is as follows:
Total
Pension
GERP PEPFP FRA Expense
Pension Expense $ 70,767 $ 313 $ 165,989 $ 237,069
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.
66
City of Albertville, Minnesota
Notes to the Financial Statements
December 31, 2021
Note 1: Summary of Significant Accounting Policies (Continued)
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.
Deferred Inflows of Resources
In addition to liabilities,the statement of net position and fund financial statements will sometimes report a separate
section for deferred inflows of resources.This separate financial statement element,deferred inflows of resources,
represents an acquisition of net position that applies to a future period(s) and so will not be recognized as an inflow of
resources (revenue) until that time. The City has only one type of item,which arises only under a modified accrual basis of
accounting that qualifies for reporting in this category. Accordingly,the item, unavailable revenue, is reported only in the
governmental funds balance sheet.The governmental funds report unavailable revenues from three sources: property
taxes,special assessments and notes/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 established by creditors,grantors or contributors;or
constraints imposed by state statutory provisions.
Committed-Amounts constrained for specific purposes that are internally imposed by formal action (resolution) of
the City Council,which is the City's highest level of decision-making authority. Committed amounts cannot be used
for any other purpose unless the City Council modifies or rescinds the commitment by resolution.
Assigned-Amounts constrained for specific purposes that are internally imposed. In governmental funds other than
the General fund, assigned fund balance represents all remaining amounts that are not classified as nonspendable
and are neither restricted nor committed. In the General fund, assigned amounts represent intended uses established
by the City Council itself or by an official to which the governing body delegates the authority. The City Council has
adopted a fund balance policy which delegates the authority to assign amounts for specific purposes to the Finance
Director and/or City Administrator.
Unassigned-The residual classification for the General fund and also negative residual amounts in other funds.
The City considers restricted amounts to be spent first when both restricted and unrestricted fund balance is available.
Additionally,the City would first use committed,then assigned,and lastly unassigned amounts of unrestricted fund
balance when expenditures are made.
The City has formally adopted a fund balance policy for the General fund. The City's policy is to maintain a minimum
unassigned fund balance of 35 percent of next year's budgeted operating expenditures for cash-flow timing needs.
67
City of Albertville, Minnesota
Notes to the Financial Statements
December 31, 2021
Note 1: Summary of Significant Accounting Policies (Continued)
Net Position
Net position represents the difference between assets and deferred outflows of resources and liabilities and deferred
inflows of resources. Net position is displayed in three components:
a. Net investment in capital assets-Consists of capital assets, net of accumulated depreciation reduced by any
outstanding debt attributable to acquire capital assets.
b. Restricted net position -Consist of net position restricted when there are limitations imposed on their use through
external restrictions imposed by creditors, grantors, laws or regulations of other governments.
c. Unrestricted net position -All other net positions that do not meet the definition of"restricted"or"net investment
in capital assets".
When both restricted and unrestricted resources are available for use, it is the City's policy to use restricted resources
first,then unrestricted resources as they are needed.
Note 2: Stewardship, Compliance and Accountability
A. Budgetary Information
An annual budget is adopted on a basis consistent with accounting principles generally accepted in the United States of
America for the General fund. All annual appropriations lapse at fiscal year-end. The City does not use encumbrance
accounting.
In June of each year, all departments of the City submit requests for appropriations to the City Administrator so that a
budget may be prepared. Before September 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 were no budget amendments made in 2021.
B. Deficit Fund Equity
The following funds had deficit fund balances as of December 31, 2021:
Fund Amount
Nonmajor
TIF #17 Old Castle $ 351,940
TIF #16 Mold Tech 788
ARPA 755
The deficit fund balances will be eliminated with transfers from other funds and future tax increment.
68
City of Albertville, Minnesota
Notes to the Financial Statements
December 31, 2021
Note 2: Stewardship, Compliance and Accountability
C. Excess of Expenditures over Appropriations
For the year ended December 31, 2021 expenditures exceed appropriations in the following fund:
Excess of
Expenditures
Final Over
Fund Budget Actual Appropriations
General $ 3,458,127 $ 3,873,116 $ 414,989
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 with Minnesota statutes and as authorized by the City Council,the City maintains deposits at those
depository banks,all of which are members of the Federal Reserve System.
Minnesota statutes require that all City deposits be protected by insurance, surety bond or collateral. The fair value of
collateral pledged must equal 110 percent of the deposits not covered by insurance or bonds, with the 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 powers may be pledged as collateral against funds
deposited by that same local government entity;
• Irrevocable standby letters of credit issued by Federal Home Loan Banks to a municipality accompanied by
written evidence that the bank's public debt is rated "AA" or better by Moody's Investors Service, Inc., or Standard
& Poor's Corporation;and
• Time deposits that are fully insured by any federal agency.
Minnesota statutes require that all collateral shall be placed in safekeeping in a restricted account at a Federal Reserve
Bank,or in an account at a trust department of a commercial bank or other financial institution that is not owned or
controlled by the financial institution furnishing the collateral.The selection should be approved by the government entity.
69
City of Albertville, Minnesota
Notes to the Financial Statements
December 31, 2021
Note 3: Detailed Notes on All Funds (Continued)
At year end,the City's carrying amount of deposits was $2,551,907 and the bank balance was$2,604,400. Of the bank
balance, $500,000 as covered by federal depository insurance and the remaining was covered by collateral held by the
City's agent in the City's name.
Investments
As of December 31, 2021,the City had the following investments:
Credit Segmented
Quality/ Time Fair Value Measurement Using
Types of Investments Ratings(1) Distribution(2) Amounts Level 1 Level 2 Level 3
Pooled Investments at Amortized Costs
4M Fund N/A Less than 1 year $ 4,373,937
Broker Money Market Funds N/A Less than 1 year 6,778,145
Non-pooled Investments at Fair Value
Brokered Certificates of Deposit N/A Less than 1 year 2,466,174 $ $ 2,466,174 $
Brokered Certificates of Deposit N/A 1 to 5 years 3,199,810 3,199,810
Municipal Bonds AAA Less than 1 year 350,703 350,703
Municipal Bonds AAA 1 to 5 years 563,902 563,902
Municipal Bonds AA+ Less than 1 year 291,525 291,525
Municipal Bonds AA Less than 1 year 100,213 100,213
Municipal Bonds AA 1 to 5 years 1,749,767 1,749,767
Municipal Bonds AA- Less than 1 year 243,423 243,423
Governmental Securities NA Less than 1 year 1,278,494 1,278,494 -
Governmental Securities NA 1 to 5 years 695,322 695,322 -
Total Investments $ 22,091,415 $ 1,973,816 $ 8,965,517 $
(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
A reconciliation of cash and temporary investments as shown on the financial statements for the City follows:
Carrying Amount of Deposits $ 2,551,907
Investments 22,091,415
Cash on Hand 849
Total $ 24,644,171
Cash and Investments
Statement of net position
Cash and temporary investments $ 24,157,652
Statement of Fiduciary net position 486,519
Total $ 24,644,171
70
City of Albertville, Minnesota
Notes to the Financial Statements
December 31, 2021
Note 3: Detailed Notes on All Funds (Continued)
B. Capital Assets
Capital asset activity for the year ended December 31, 2021 was as follows:
Beginning Ending
Balance Increases Decreases Balance
Governmental Activities
Capital Assets not Being Depreciated
Land $ 3,983,292 $ - $ - $ 3,983,292
Construction in progress 845,292 601,479 - 1,446,771
Total Capital Assets not Being Depreciated 4,828,584 601,479 - 5,430,063
Capital Assets Being Depreciated
Buildings 6,543,862 - - 6,543,862
Infrastructure 31,297,501 - - 31,297,501
Land improvements 2,768,857 150,000 - 2,918,857
Machinery and equipment 1,322,693 24,947 - 1,347,640
Vehicles 2,616,227 170,017 - 2,786,244
Total Capital Assets Being Depreciated 44,549,140 344,964 - 44,894,104
Less Accumulated Depreciation for
Buildings (2,458,025) (160,347) - (2,618,372)
Infrastructure (20,352,451) (1,039,885) - (21,392,336)
Land improvements (1,533,999) (123,545) - (1,657,544)
Machinery and equipment (524,752) (95,234) - (619,986)
Vehicles (969,587) (169,576) - (1,139,163)
Total Accumulated Depreciation (25,838,814) (1,588,587) - (27,427,401)
Total Capital Assets Being Depreciated, Net 18,710,326 (1,243,623) - 17,466,703
Governmental Activities Capital Assets, Net $ 23,538,910 $ (642,144) $ - $ 22,896,766
71
City of Albertville, Minnesota
Notes to the Financial Statements
December 31, 2021
Note 3: Detailed Notes on All Funds (Continued)
Beginning Ending
Balance Increases Decreases Balance
Business-type Activities
Capital Assets not Being Depreciated
Land $ 351,834 $ - $ - $ 351,834
Construction in progress 7,964,615 - (7,964,615) -
Total Capital Assets not Being Depreciated 8,316,449 - (7,964,615) 351,834
Capital Assets Being Depreciated
Buildings 4,719,693 - - 4,719,693
Infrastructure 11,885,741 7,973,649 - 19,859,390
Machinery and equipment 318,497 42,898 - 361,395
Vehicles 472,461 - - 472,461
Total Capital Assets Being Depreciated 17,396,392 8,016,547 - 25,412,939
Less Accumulated Depreciation for
Buildings (1,759,508) (117,992) - (1,877,500)
Infrastructure (5,137,732) (295,865) - (5,433,597)
Machinery and equipment (295,574) (13,670) - (309,244)
Vehicles (424,682) (4,543) - (429,225)
Total Accumulated Depreciation (7,617,496) (432,070) - (8,049,566)
Total Capital Assets Being Depreciated, Net 9,778,896 7,584,477 - 17,363,373
Business-type Activities Capital Assets, Net $ 18,095,345 $ 7,584,477 $ (7,964,615) $ 17,715,207
Depreciation expense was charged to functions/programs of the City as follows:
Governmental Activities
General government $ 151,856
Public safety 148,580
Public works 1,163,430
Culture and recreation 124,721
Total Depreciation Expense-Governmental Activities $ 1,588,587
Business-type Activities
Sewer $ 355,372
Water 39,558
Storm water 37,140
Total Depreciation Expense- Business-type Activities $ 432,070
72
City of Albertville, Minnesota
Notes to the Financial Statements
December 31, 2021
Note 3: Detailed Notes on All Funds (Continued)
C. Advances to/from other Funds and Transfers
The composition of interfund balances as of December 31, 2021 is as follows:
Receivable Fund Payable Fund Amount
Debt Service Other Governmental Funds $ 358,730
The above funds advanced the above balances to eliminate their deficit cash balances and finance capital projects.
Interest is charged at 4 percent interest rate.
D. Long-term Debt
General Obligation Bonds
The City issues general obligation bonds to provide funds for the acquisition and construction of major capital facilities.
General obligation bonds have been issued for both governmental activities and business-type activities. These bonds are
reported in the proprietary funds if they are expected to be repaid from proprietary fund revenues.
General obligation bonds are direct obligations of the City and pledge the full faith and credit of the City.
General Obligation Special Assessment Bonds and Improvement Notes
The following bonds were issued to finance various improvement projects in the City and will be repaid with the collection
of special assessment levies.
Interest Issue Maturity Balance at
Description Authorized Issued Rate Date Date Year End
G.O. Improvement
Refunding Bonds,
Series 2011 C $ 1,825,000 $ 1,825,000 2.00-3.35 % 08/25/11 02/01/25 $ 590,000
G.O. Improvement Refunding
Bonds, Series 2012A 2,310,000 2,310,000 1.00-2.00 04/10/12 02/01/23 730,000
G.O. Improvement
Refunding Bonds,
Series 2012B 3,215,000 3,215,000 0.50-2.35 05/10/12 12/01/25 990,000
General Obligation Improvement
Note, Series 2012 4,113,700 3,278,551 1.277 03/23/12 08/20/32 2,064,000
Total G.O. Special Assessment Bonds and Improvement Notes $ 4,374,000
73
City of Albertville, Minnesota
Notes to the Financial Statements
December 31, 2021
Note 3: Detailed Notes on All Funds (Continued)
Annual debt service requirements to maturity for general obligation special assessment bonds are as follows:
Year Ending Governmental Activities Business-type Activities
December 31, Principal Interest Total Principal Interest Total
2021 $ 876,000 $ 72,587 $ 948,587 $ 80,000 $ 2,500 $ 82,500
2022 813,000 55,649 868,649 85,000 850 85,850
2023 581,000 41,047 622,047 - - -
2024 593,000 28,114 621,114 - - -
2025 185,000 17,188 202,188 - - -
2026-2030 961,000 49,905 1,010,905 - - -
2031 -2032 200,000 2,554 202,554 - - -
Total $ 4,209,000 $ 267,044 $ 4,476,044 $ 165,000 $ 3,350 $ 168,350
General Obligation Revenue Bonds
The following bonds were issued to finance capital improvements in the enterprise funds. They will be repaid from future
net operating revenues and transfers in from the enterprise funds and are backed by the taxing power of the City. Annual
net operating revenues and transfers in, principal and interest payments, and the percentage of revenue required to cover
principal and interest payment are as follows:
Sewer Water Storm Water
Net Operating Revenues $ 927,848 $ 427,597 $ 280,898
Principal and Interest 658,741 11,054 79,050
Percentage of Revenues 71% 3% 28%
The components of the general obligation revenues bonds are as follows:
Authorized Interest Issue Maturity Balance at
Description and Issued Rate Date Date Year End
G.O. Utility Revenue
Bonds, Series 2011 A $ 520,000 1.10-3.70 % 04/21/11 02/01/26 $ 195,000
G.O. Sewer Revenue
Refunding Bonds,
Series 2013A 2,515,000 .70-2.10 01/24/13 12/01/25 1,050,000
G.O. Sewer Revenue
Series 2019A 5,720,000 2.00-3.00 09/24/19 02/01/39 5,190,000
Total G.O. Revenue Bonds $ 6,435,000
74
City of Albertville, Minnesota
Notes to the Financial Statements
December 31, 2021
Note 3: Detailed Notes on All Funds (Continued)
Annual debt service requirements to maturity for general obligation revenue bonds are as follows:
Year Ending Business-type Activities
December 31, Principal Interest Total
2021 $ 520,000 $ 145,004 $ 665,004
2022 540,000 132,344 672,344
2023 550,000 118,969 668,969
2024 560,000 104,764 664,764
2025 300,000 89,964 389,964
2026-2030 1,400,000 345,570 1,745,570
2031 -2035 1,555,000 195,676 1,750,676
2036-2039 1,010,000 34,442 1,044,442
Total $ 6,435,000 $ 1,166,733 $ 7,601,733
Changes in Long-term Liabilities
Long-term liability activity for the year ended December 31, 2021 was as follows:
Beginning Ending Due Within
Balance Increases Decreases Balance One Year
Governmental Activities
Bonds Payable
G.O. Special
Assessment bonds $ 5,073,000 $ - $ (864,000) $ 4,209,000 $ 876,000
Unamortized premium 31,343 - (6,732) 24,611 -
Total Bonds Payable 5,104,343 - (870,732) 4,233,611 876,000
Compensated
Absences Payable 154,074 74,949 (105,320) 123,703 92,778
Governmental Activity
Long-term Liabilities $ 5,258,418 $ 74,949 $ (976,052) $ 4,357,314 $ 968,778
Business-type Activities
Bonds Payable
G.O. Revenue bonds $ 6,945,000 $ - $ (510,000) $ 6,435,000 $ 520,000
Unamortized premium 119,673 - (7,053) 112,620 -
G.O. Special
Assessment bonds 240,000 - (75,000) 165,000 80,000
Unamortized premium 2,617 - (1,306) 1,311 -
Total Bonds Payable 7,307,290 - (593,359) 6,713,931 600,000
Compensated
Absences Payable 88,762 48,306 (61,355) 75,713 56,784
Business-type Activity
Long-term Liabilities $ 7,396,052 $ 48,306 $ (654,714) $ 6,789,644 $ 656,784
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.
75
City of Albertville, Minnesota
Notes to the Financial Statements
December 31, 2021
Note 3: Detailed Notes on All Funds (Continued)
E. Components of Fund Balance
At December 31, 2021, 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 Purpose Amount
Nonspendable
General Land held for resale $ 51,000
General Prepaid items 85,098
Total Nonspendable 136,098
Restricted
Debt Service Debt Service 3,073,238
Park Park improvements 896,436
Other governmental funds Tax increment financing 121,215
Total Restricted 4,090,889
Commited
Other governmental funds Revolving loan 155,950
Assigned
Capital Outlay Reserve Future capital projects 5,634,162
Unassigned
General 2,178,219
Other governmental funds (353,483)
Total Unassigned 1,824,736
Total $ 11,841,835
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 Plan
All full-time and certain part-time employees of the City are covered by the General Employees Plan. General Employees
Plan members belong to the Coordinated Plan. Coordinated Plan members are covered by Social Security.
Public Employees Police and Fire Plan
The Police and Fire Plan,originally established for police officers and firefighters not covered by a local relief association,
now covers all police officers and firefighters hired since 1980.Effective July 1, 1999,the Police and Fire Plan also covers
police officers and firefighters belonging to a local relief association that elected to merge with and transfer assets and
administration to PERA.
76
City of Albertville, Minnesota
Notes to the Financial Statements
December 31, 2021
Note 4: Defined Benefit Pension Plans - Statewide (Continued)
B. Benefits Provided
PERA provides retirement, disability and death benefits. Benefit provisions are established by state statute 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 the provisions in effect at the time they last terminated their public service.
General Employees Plan Benefits
General Employees Plan 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 of average salary 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. The postretirement increase is equal to 50 percent of
the cost-of-living adjustment (COLA) announced by the SSA,with a minimum increase of at least 1 percent and a
maximum of 1.5 percent. Recipients that have been receiving the annuity or benefit for at least a full year as of the
June 30 before the effective date of the increase will receive the full increase. Recipients receiving the annuity or benefit
for at least one month but less than a full year as of the June 30 before the effective date of the increase will receive a
reduced prorated increase. For members retiring on January 1,2024,or later,the increase will be delayed until normal
retirement age (age 65 if hired prior to July 1, 1989, or age 66 for individuals hired on or after July 1, 1989). Members
retiring under Rule of 90 are exempt from the delay to normal retirement.
Police and Fire Plan Benefits
Benefits for Police and Fire Plan members first hired after June 30,2010, but before July 1,2014 vest on a prorated basis
from 50 percent after five years up to 100 percent after ten years of credited service. Benefits for Police and Fire Plan
members first hired after June 30,2014 vest on a prorated basis from 50 percent after ten years up to 100 percent after
twenty years of credited service. The annuity accrual rate is 3 percent of average salary for each year of service. For
Police and Fire Plan members who were first hired prior to July 1, 1989,a full annuity is available when age plus years of
service equal at least 90.
Benefit increases are provided to benefit recipients each January. The postretirement increase is 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 increase-will receive the full increase. For recipients receiving the annuity or benefit for at least 25 months but
less than 36 months as of the June 30 before the effective date of the increase will receive a reduced prorated increase.
C. Contributions
Minnesota statutes chapter 353 sets the rates for employer and employee contributions. Contribution rates can only be
modified by the state Legislature.
General Employees Fund Contributions
Coordinated Plan members were required to contribute 6.50 percent of their annual covered salary in fiscal year 2021 and
the City was required to contribute 7.50 percent for Coordinated Plan members in fiscal year 2021. The City's
contributions to the General Employees Fund for the years ending December 31, 2021, 2020 and 2019 were $99,408,
$95,790 and $90,361 , respectively.The City's contributions were equal to the required contributions for each year as set
by state statute.
77
City of Albertville, Minnesota
Notes to the Financial Statements
December 31, 2021
Note 4: Defined Benefit Pension Plans - Statewide (Continued)
Police and Fire Fund Contributions
Police and Fire Plan members were required to contribute 11.80 percent of their annual covered salary in fiscal year 2021
and the City was required to contribute 17.70 percent for Police and Fire Plan members. The City's contributions to the
Police and Fire Fund for the years ending December 31, 2021,2020 and 2019 were $21,738, $20,812 and $17,055,
respectively. The City's contributions were equal to the required contributions for each year as set by state statute.
D. Pension Costs
General Employees Fund Pension Costs
At December 31, 2021,the City reported a liability of$772,951 for its proportionate share of the General 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. 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 $23,664. The net pension liability was measured as of June 30,2021,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, 2020 through June 30, 2021 relative to the
total employer contributions received from all of PERA's participating employers. The City's proportionate share was
0.0181 percent which was an increase of 0.0007 percent decrease from its proportion measured as of June 30, 2020.
City's Proportianate Share of the Net Pension Liability $ 772,951
State of Minnesota's Proportionate Share of the Net Pension
Liability Associated with the City 23,664
Total $ 796,615
For the year ended December 31, 2021,the City recognized a pension expense of$68,859 for its proportionate share of
the General Employees Fund's pension expense. In addition,the City recognized an additional $1,909 as 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, 2021,the City reported its proportionate share of General Employees Fund's deferred outflows of
resources and deferred inflows of resources, related to pensions from the following sources:
Deferred Deferred
Outflows Inflows
of Resources of Resources
Differences Between Expected and
Actual Experience $ 4,224 $ 23,548
Changes in Actuarial Assumptions 471,948 16,046
Net Difference Between Projected and
Actual Earnings on Plan Investments - 666,954
Changes in Proportion 83,090 -
Contributions to PERA Subsequent
to the Measurement Date 49,240 -
Total $ 608,502 $ 706,548
78
City of Albertville, Minnesota
Notes to the Financial Statements
December 31, 2021
Note 4: Defined Benefit Pension Plans - Statewide (Continued)
2022 $ 24,197
2023 18,134
2024 (7,035)
2025 (182,582)
The$49,240 reported as deferred outflows of resources related 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, 2022. Other amounts reported as deferred outflows and inflows of resources related to GERF pensions will
be recognized in pension expense as follows:
Police and Fire Fund Pension Costs
At December 31, 2021,the City reported a liability of$78,733 for its proportionate share of the Police and Fire Fund's net
pension liability. The net pension liability was measured as of June 30, 2021,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, 2020 through June 30,2021 relative to the total employer contributions received
from all of PERA's participating employers. At June 30, 2021,the City's proportionate share was 0.0102 percent which
was an increase of 0.0003 percent from its proportionate share measured as of June 30, 2020.
The State of Minnesota contributed $18 million to the Police and Fire Fund in the plan fiscal year ended June 30, 2021.
The contribution consisted of$9 million in direct state aid that does meet the definition of a special funding situation and
$9 million in supplemental state aid that does not meet the definition of a special funding situation.The$9 million direct
state was paid on October 1,2020. Thereafter, by October 1 of each year,the state will pay$9 million to the Police and
Fire Fund until full funding is reached or July 1,2048,whichever is earlier. The$9 million in supplemental state aid will
continue until the fund is 90 percent funded, or until the State Patrol Plan (administered by the Minnesota State
Retirement System) is 90 percent funded,whichever occurs later. Strong asset returns for the fiscal year ended 2021 will
accelerate the phasing out of these state contributions,although we do not anticipate them to be phased out during the
fiscal year ending 2022.
The State of Minnesota is not included as a non-employer contributing entity in the Police and Fire Pension Plan pension
allocation schedules for the$9 million in supplemental state aid. The City also recognized negative pension expense
$328 for the year ended December 31,2020 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. In addition,the City
recognized an additional $641 as pension expense(grant revenue)for its proportionate share of the State of Minnesota's
contribution of$9 million to the Police and Fire Fund.
At December 31, 2021,the City reported its proportionate share of the Police and Fire Plan's deferred outflows of
resources and deferred inflows of resources from the following sources:
Deferred Deferred
Outflows Inflows
of Resources of Resources
Differences Between Expected and
Actual Experience $ 15,057 $ 416
Changes in Actuarial Assumptions 117,587 40,295
Net Difference Between Projected and
Actual Earnings on Plan Investments - 150,385
Changes in Proportion 14,510 1,224
Contributions to PERA Subsequent
to the Measurement Date 10,887 -
Total $ 158,041 $ 192,320
79
City of Albertville, Minnesota
Notes to the Financial Statements
December 31, 2021
Note 4: Defined Benefit Pension Plans - Statewide (Continued)
The$10,887 reported 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, 2022. Other amounts reported as deferred outflows and inflows of resources related to pensions will be
recognized in pension expense as follows:
2022 $ (44,829)
2023 (7,089)
2024 (6,223)
2025 (12,358)
2026 25,333
E. Actuarial Assumptions
The total pension liability in the June 30, 2021 actuarial valuation was determined using an individual entry-age normal
actuarial cost method.The long-term rate of return on pension plan investments used in the determination of the total
liability is 6.5 percent. This assumption is based on a review of inflation and investments return assumptions from a
number of national investment consulting firms. The review provided a range of return investment return rates deemed to
be reasonable by the actuary.An investment return of 6.5 percent was deemed to be within that range of reasonableness
for financial reporting purposes.
Inflation is assumed to be 2.25 percent for the General Employees Plan and 2.25 percent for the Police and Fire Plan.
Benefit increases after retirement are assumed to be 1.25 percent for the General Employees Plan. The Police and Fire
Plan benefit increase is fixed at 1 percent per year and that increase was used in the valuation.
Salary growth assumptions in the General Employees Plan range in annual increments from 10.25 percent after one year
of service to 3.0 percent after 29 years of service and 6.0 percent per year thereafter. In the Police and Fire Plan, salary
growth assumptions range from 11.75 percent after one year of service to 3.0 percent after 24 years of service.
Mortality rates for the General Employees Plan are based on the Pub-2010 General Employee Mortality Table. Mortality
rates for the Police and Fire Plan is based on the Pub-2010 Public Safety Employee Mortality tables.The tables are
adjusted slightly to fit PERA's experience.
Actuarial assumptions used in the June 30, 2021 valuation were based on the results of actuarial experience studies. The
most recent four-year experience study in the General Employees Plan was completed in 2019.The assumption changes
were adopted by the Board and become effective with the July 1,2020 actuarial valuation. The most recent four-year
experience study for the Police and Fire Plan was completed in 2020 were adopted by the Board and became effective
with the July 1, 2021 actuarial valuation.
The following changes in actuarial assumptions and plan provisions occurred in 2021:
General Employees Fund
Changes in Actuarial Assumptions
• The investment return and single discount rates were changed from 7.50 percent to 6.50 percent, for financial
reporting purposes.
• The mortality improvement scale was changed from Scale MP-2019 to Scale MP-2020.
Changes in Plan Provisions
• There were no changes in plan provisions since the previous valuation.
80
City of Albertville, Minnesota
Notes to the Financial Statements
December 31, 2021
Note 4: Defined Benefit Pension Plans - Statewide (Continued)
Police and Fire Fund
Changes in Actuarial Assumptions
• The investment return and single discount rates were changed from 7.50 percent to 6.50 percent, for financial
reporting purposes.
• The inflation assumption was changed from 2.50 percent to 2.25 percent.
• The payroll growth assumption was changed from 3.25 percent to 3.00 percent.
• The base mortality table for healthy annuitants and employees was changed from the RP-2014 table to the Pub-
2010 Public Safety Mortality table.The mortality improvement scale was changed from MP-2019 to MN-2020.
• The base mortality table for disabled annuitants was changed from the RP-2014 healthy annuitant mortality table
(with future mortality improvement according to Scale MP-2019)to the Pub-2010 Public Safety disabled annuitant
mortality table(with future mortality improvement according to Scale MP-2020).
• Assumed rates of salary increase were modified as recommended in the July 14, 2020 experience study.The
overall impact is a decrease in gross salary increase rates.
• Assumed rates of retirement were changed as recommended in the July 14, 2020 experience study.The changes
result in slightly more unreduced retirements and fewer assumed early retirements.
• Assumed rates of withdrawal were changed from select and ultimate rates to service-based rates. The changes
result in more assumed terminations.
• Assumed rates of disability were increased for ages 25-44 and decreased for ages over 49. Overall, proposed
rates result in more projected disabilities.
• Assumed percent married for active female members was changed from 60 percent to 70 percent. Minor
changes to form of payment assumptions were applied.
Changes in Plan Provisions
• There have been no changes since the prior valuation.
81
City of Albertville, Minnesota
Notes to the Financial Statements
December 31, 2021
Note 4: Defined Benefit Pension Plans - Statewide (Continued)
The State Board of Investment,which manages the investments of PERA, prepares an analysis of the reasonableness on
a regular basis of 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 target asset allocation
percentages. The target allocation and best estimates of geometric real rates of return for each major asset class are
summarized in the following table:
Long-term
Target Expected Real
Asset Class Allocation Rate of Return
Domestic Stocks 33.50 % 5.10 %
Alternative Assets (Private Markets) 25.00 5.90
Bonds (Fixed Income) 25.00 0.75
International Stocks 16.50 5.30
Total 100.00 %
F. Discount Rate
The discount rate used to measure the total pension liability in 2021 was 6.50 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 Fund and the
Police and Fire Fund were 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
The following presents the City's proportionate share of the net pension liability for all plans it participates in, calculated
using the discount rate disclosed in the preceding paragraph,as well as what the City's proportionate share of the net
pension liability would be if it were calculated using a discount rate one percentage point lower or one percentage point
higher than the current discount rate:
City's Proportionate Share of NPL
1 Percent 1 Percent
Decrease (5.50%) Current (6.50%) Increase(7.50%)
General Employees Fund $ 1,576,426 $ 772,951 $ 113,651
City's Proportionate Share of NPL
1 Percent 1 Percent
Decrease (5.50%) Current (6.50%) Increase(7.50%)
Police and Fire Fund $ 249,965 $ 78,733 $ (61,634)
H. Pension Plan 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 obtained on the
Internet at www.mnpera.org.
82
City of Albertville, Minnesota
Notes to the Financial Statements
December 31, 2021
Note 5: Defined Benefit Pension Plans - Fire Relief Association
A. Plan Description
All members of the Albertville Fire Department (the Department) are covered by a defined benefit plan administered by the
Albertville Fireman's Relief Association (the Association).As of December 31, 2021,the plan covered 26 active firefighters
and 8 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 fund the retirement benefits earned by the
Department's membership. Funding for the Association is derived from an insurance premium tax in accordance with the
Volunteer Firefighter's Relief Association Financing Guidelines Act of 1971 (chapter 261 as amended by chapter 509 of
Minnesota statutes 1980). Funds are also derived from investment income.
B. Benefits Provided
A firefighter who completes at least 20 years as an active member of the Department is entitled,after age 50,to a full
service pension upon retirement.
The bylaws of the Association also provide for an early vested service pension for a retiring member who has completed
fewer than 20 years of service. The reduced pension, available to members with 10 years of service, shall be equal to
60 percent 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 in fire state aid to the plan on behalf
of the Albertville Fire Department for the year ended December 31,2020,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.
83
City of Albertville, Minnesota
Notes to the Financial Statements
December 31, 2021
Note 5: Defined Benefit Pension Plans - Fire Relief Association (Continued)
D. Pension Costs
At December 31, 2021,the City reported a net pension liability(asset) of($392,442) for the Volunteer Firefighter Fund. The
net pension asset was measured as of December 31, 2021.The total pension asset used to calculate the net pension
asset in accordance with GASB 68 was determined by PERA applying an actuarial formula to specific census data
certified by the Department. The following table presents the changes in net pension liability(asset) during the year.
Total Plan Net
Pension Fiduciary Pension
Liability Net Position Liability(Asset)
(a) (b) (a-b)
Beginning Balance January 1,2021 $ 590,780 $ 953,366 $ (362,586)
Changes for the Year
Service cost 33,673 - 33,673
Interest cost 33,067 - 33,067
Assumption changes 10,363 - 10,363
Plan changes 77,330 - 77,330
Projected investment earnings - 53,751 (53,751)
Contributions (State) - 95,841 (95,841)
Asset (gain)/loss (3,488) 32,707 (36,195)
Benefit payouts (46,480) (46,480) -
Administrative costs - (1,498) 1,498
Total Net Changes 104,465 134,321 (29,856)
Ending Balance December 31,2021 $ 695,245 $ 1,087,687 $ (392,442)
For the year ended December 31, 2021,the City recognized a pension expense of$165,989.
At December 31, 2021,the City reported deferred inflows of resources and deferred outflows of resources, its
contributions subsequent to the measurement date, related to pension from the following sources:
Deferred Deferred
Outflows Inflows
of Resources of Resources
Differences Between Expected and
Actual Experience $ - $ 27,009
Changes in Actuarial Assumptions 9,211 17,116
Investment Gains - 66,294
Contributions to Plan Subsequent
to the Measurement Date 91,777 -
Total $ 100,988 $ 110,419
84
City of Albertville, Minnesota
Notes to the Financial Statements
December 31, 2021
Note 5: Defined Benefit Pension Plans - Fire Relief Association (Continued)
Deferred outflows of resources totaling $101,590 related to pensions resulting from the City's contributions to the plan
subsequent to the measurement date will be recognized as a reduction of the net pension asset in the year ended
December 31, 2022. Other amounts reported as deferred outflows of resources related to the plan will be recognized in
pension expense as follows:
2022 $ (27,858)
2023 (18,110)
2024 (35,123)
2025 (13,651)
2026 (6,466)
E. Actuarial Assumptions
The total pension asset at December 31, 2021 was determined using the entry age normal actuarial cost method and the
following actuarial assumptions:
Retirement Eligibility at 100 Percent of Age 50
Salary Increases 2.50% per year
Cost of Living Increases N/A
Investment Rate of Return 5.00%
20 Year Municipal Bond Yield 3.50%
There were no changes in actuarial assumptions in 2021.
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 the portfolio.
The target allocation and best estimates of geometric real rates of return for each major asset class are summarized in
the following table:
Long-term
Target Expected Real
Asset Class Allocation Rate of Return
Equities 52.00 % 7.00 %
Fixed Income 33.00 3.00
Other 2.00 6.00
Cash 13.00 2.00
Total 100.00 %
F. Discount Rate
The discount rate used to measure the total 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 specified in statute. Based on that
assumption and considering the funding ratio of the plan,the fiduciary net position was projected to be available to make
all projected future benefit payments of current active and inactive members. Therefore,the long-term expected rate of
return on pension plan investments was applied to all periods of projected benefit payments to determine the total
pension liability.
85
City of Albertville, Minnesota
Notes to the Financial Statements
December 31, 2021
Note 5: Defined Benefit Pension Plans - Fire Relief Association (Continued)
G. Pension Liability Sensitivity
The following presents the City's net pension liability(asset) for the plan, calculated using the discount rate disclosed in
the preceding paragraph, as well as what the City's net pension liability(asset)would be if it were calculated using a
discount rate 1 percent lower or 1 percent higher than the current discount rate:
1 Percent 1 Percent
Decrease(4.50%) Current (5.50%) Increase (6.50%)
Defined Benefit Plan $ (368,373) $ (392,442) $ (415,453)
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 provide water service to the local area. The JPWB
operates as an enterprise and provides water service to the general public,with the majority of its costs being paid by
various fees and charges to users of the water system. The governing body consists of a six-member Board of
Commissioners (the"Board").Two individuals,the Mayor and another City Council Member from each City,are appointed
by their respective City Council to serve on the Board.The JPWB does not have any component units.
The JPWB' s agreement states that charges billed and collected for water supply remain with the JPWB,while the charges
for distribution are billed by the JPWB but the collections are owned by each member City and will be remitted to them
upon collection. The financial statements from 2020,the most recent available, is summarized below.
Separate financial statements can be obtained by writing to the Joint Powers Water Board, 11100 50th Street NE,
Albertville, Minnesota 55301.
Joint Powers Water Board
Statement of Net Position
December 31, 2020
Assets and Deferred Outflow of Resources $ 27,527,140
Liabilities $ 831,800
Net Position 26,695,340
Total Liabilities and Net Position $ 27,527,140
86
City of Albertville, Minnesota
Notes to the Financial Statements
December 31, 2021
Note 6: Joint Ventures (Continued)
Joint Powers Water Board
Summary Statement of Activities
For the Year Ended December 31,2020
Operating Revenues $ 2,578,760
Operating Expenses 1,873,888
Operating Income 704,872
Net Nonoperating Revenues 1,233,330
Change in Net Position 1,938,202
Net Position,January 1 24,757,138
Net Position, December 31 $ 26,695,340
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 sheet was opened by Independent 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-sixth equity financial interest of$224,132 as of December 31,2021.
Separate financial statements can be obtained by contacting Tina Lannes, Finance Director at Albertville City Hall.
St. Michael -Albertville Ice Arena
Statement of Net Position
December 31, 2021
Assets $ 1,634,069
Liabilities $ 39,277
Net Position 1,594,792
Total Liabilities and Net Position $ 1,634,069
87
City of Albertville, Minnesota
Notes to the Financial Statements
December 31, 2021
Note 6: Joint Ventures (Continued)
St. Michael -Albertville Ice Arena
Summary Statement of Activities
December 31, 2021
Program Revenues $ 797,793
Expenses (723,293)
Interest Revenue (334)
Change in Net Position 73,832
Net Position,January 1 1,520,960
Net Position, December 31 $ 1,594,792
Note 7: Other Information
A. Risk Management
The City is exposed to various risks of loss related to torts;theft of,damage to and destruction of assets; errors and
omissions; injuries to employees; and natural disasters for which the City carries insurance.The City obtains insurance
through participation in the League of Minnesota Cities Insurance Trust (LMCIT),which is a risk sharing pool with
approximately 800 other governmental units. The City pays an annual premium to LMCIT for its workers compensation
and property and casualty insurance. The LMCIT is self-sustaining through member premiums and will reinsure for claims
above a prescribed dollar amount for each insurance event. Settled claims have not exceeded the City's coverage in any
of the past three fiscal years.
Liabilities are reported when it is probable that a loss has occurred and the amount of the loss can be reasonably
estimated. An excess coverage insurance policy covers individual claims in excess of$1,000,000. Liabilities, if any,
include an amount for claims that have been incurred but not reported (IBNRs). The City's management is not aware of
any incurred but not reported claims.
B. Legal Debt Margin
In accordance with Minnesota statutes,the City may not incur or be subject to net debt in excess of three percent of the
market value of taxable property within the City. Net debt is payable solely from ad valorem taxes and,therefore,excludes
debt financed partially or entirely by special assessments,enterprise fund revenues or tax increments. The City's
applicable debt does not exceed the limit.
88
City of Albertville, Minnesota
Notes to the Financial Statements
December 31, 2021
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 projects deemed to be in the public interest. Although these bonds bear the name
of the City,the City,the State, nor any political subdivision thereof is obligated in any manner for repayment of the bonds.
Accordingly,the bonds are not reported as liabilities in the accompanying financial statements.
Authorized Balance at
Description and Issued Year End
Multifamily Housing Revenue Refunding Bonds,Series 2007 $ 3,540,000 $ 2,805,000
Multifamily Housing Revenue Bonds,Series 2010A 4,750,000 4,005,000
Multifamily Housing Revenue Bonds,Series 2010B 3,300,000 3,120,000
Total Conduit Debt $ 11,590,000 $ 9,930,000
D. Tax Increment Financing Districts
The City's tax increment districts are subject to review by the State of Minnesota Office of the State Auditor(OSA).Any
disallowed claims or misuse of tax increments could become a liability of the applicable fund. Management has indicated
that they are not aware of any instances of noncompliance which would have a material effect on the financial
statements.
E. Commitment Cost Sharing Agreement
The City has entered into a cost sharing agreement for the construction and maintenance of a library with the City of
St. Michael, Minnesota.The library net cost is split based on the pro rata average of population and market value.
Note 8: COVID-19
On January 30,2020,the World Health Organization ("WHO") announced a global health emergency because of a new
strain of coronavirus ("COVID-19") and the risks to the international community as virus spreads globally. On
March 11,2020,the WHO classified the COVID-19 outbreak as a pandemic, based on the rapid increase in exposure
globally. In response to the pandemic,the State of Minnesota has issued stay-at-home orders and other measures aimed
at slowing the spread of the coronavirus.
The full impact of the COVID-19 outbreak continues to evolve as of the date of this report. Due to the rapid development
and fluidity of this situation,the City cannot determine the ultimate impact that the COVID-19 pandemic will have on its
financial condition, liquidity,and future revenue collection, and therefore any prediction as to the ultimate impact on the
City's financial condition, liquidity,and future results of its revenue collections is uncertain.
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REQUIRED SUPPLEMENTARY INFORMATION
CITY OF ALBERTVILLE
ALBERTVILLE, MINNESOTA
FOR THE YEAR ENDED
DECEMBER 31, 2021
91
City of Albertville, Minnesota
Required Supplementary Information
For the Year Ended December 31,2021
Schedule of Employer's Share of PERA Net Pension Liability- General Employees Fund
City's
State's Proportionate
Proportionate Share of the
City's Share of Net Pension
Proportionate the Net Pension Liability as a Plan Fiduciary
City's Share of Liability City's Percentage of Net Position
Fiscal Proportion of the Net Pension Associated with Covered Covered as a Percentage
Year the Net Pensior Liability the City Total Payroll Payroll of the Total
Ending Liability (a) (b) (a+b) (c) (a/c) Pension Liability
06/30/21 0.0181 % $ 772,951 $ 23,664 $ 796,615 $ 1,306,061 59.2 % 87.0 %
06/30/20 0.0174 1,043,210 32,283 1,075,493 1,244,313 83.8 79.0
06/30/19 0.0161 890,133 27,665 917,798 1,133,606 78.5 80.2
06/30/18 0.0147 815,496 26,781 842,277 986,845 82.6 79.5
06/30/17 0.0151 963,974 12,125 976,099 1,010,559 95.4 75.9
06/30/16 0.0155 1,258,523 16,464 1,274,987 921,545 136.6 68.9
06/30/15 0.0150 777,378 - 777,378 866,860 89.7 78.2
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
Statutorily Statutorily Contribution City's Contributions as
Required Required Deficiency Covered a Percentage of
Year Contribution Contribution (Excess) Payroll Covered Payroll
Ending (a) (b) (a-b) (c) (b/c)
12/31/21 $ 99,408 $ 99,408 $ $ 1,325,438 7.5 %
12/31/20 95,790 95,790 - 1,277,201 7.5
12/31/19 90,361 90,361 - 1,204,809 7.5
12/31/18 77,347 77,347 - 1,031,293 7.5
12/31/17 72,910 72,910 - 972,129 7.5
12/31/16 72,244 72,244 - 963,255 7.5
12/31/15 66,929 66,929 - 892,386 7.5
Note:Schedule is intended to show 10 year trend.Additional years will be reported as they become available.
92
City of Albertville, Minnesota
Required Supplementary Information (Continued)
For the Year Ended December 31,2021
Notes to the Required Supplementary Information -General Employee Fund
Changes in Actuarial Assumptions
2021 -The investment return and single discount rates were changed from 7.50 percent to 6.50 percent,for financial
reporting purposes.The mortality improvement scale was changed from Scale MP-2019 to Scale MP-2020.
2020 -The price inflation assumption was decreased from 2.50%to 2.25%.The payroll growth assumption was
decreased from 3.25%to 3.00%.Assumed salary increase rates were changed as recommended in the June 30,2019
experience study. The net effect is assumed rates that average 0.25% less than previous rates. Assumed rates of
retirement were changed as recommended in the June 30, 2019 experience study.The changes result in more unreduced
(normal) retirements and slightly fewer Rule of 90 and early retirements. Assumed rates of termination were changed as
recommended in the June 30,2019 experience study. The new rates are based on service and are generally lower than the
previous rates for years 2-5 and slightly higher thereafter.Assumed rates of disability were changed as recommended in
the June 30,2019 experience study.The change results in fewer predicted disability retirements for males and females.
The base mortality table for healthy annuitants and employees was changed from the RP-2014 table to the Pub-2010
General Mortality table, with adjustments.The base mortality table for disabled annuitants was changed from the RP-
2014 disabled annuitant mortality table to the PUB-2010 General/Teacher disabled annuitant mortality table, with
adjustments. The mortality improvement scale was changed from Scale MP-2018 to Scale MP-2019.The assumed
spouse age difference was changed from two years older for females to one year older. The assumed number of married
male new retirees electing the 100%Joint&Survivor option changed from 35%to 45%. The assumed number of married
female new retirees electing the 100%Joint&Survivor option changed from 15%to 30%.The corresponding number of
married new retirees electing the Life annuity option was adjusted accordingly.
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 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 2035 and 2.5 percent per year thereafter.
93
City of Albertville, Minnesota
Required Supplementary Information (Continued)
For the Year Ended December 31,2021
Notes to the Required Supplementary Information -General Employee Fund (Continued)
Changes in Plan Provisions
2021 -No changes noted.
2020 -Augmentation for current privatized members was reduced to 2.0%for the period July 1,2020 through
December 31, 2023 and 0.0%after.Augmentation was eliminated for privatizations occurring after June 30, 2020.
2019 -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.
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.
2016-No changes noted.
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 fiduciary plan net position by$892 million.
Upon consolidation,state and employer contributions were revised.
94
City of Albertville, Minnesota
Required Supplementary Information (Continued)
For the Year Ended December 31,2021
Schedule of Employer's Share of PERA Net Pension Liability- Police and Fire Fund
City's
State's Proportionate
Proportionate Share of the
City's Share of Net Pension
Proportionate the Net Pension Liability as a Plan Fiduciary
City's Share of Liability City's Percentage of Net Position
Fiscal Proportion of the Net Pension Associated with Covered Covered as a Percentage
Year the Net Pension Liability the City Total Payroll Payroll of the Total
Ending Liability (a) (b) (a+b) (c) (a/c) Pension Liability
06/30/21 0.0102 % $ 78,733 $ 3,520 $ 78,733 $ 120,137 65.5 % 93.7 %
06/30/20 0.0099 130,493 87,099 130,493 116,132 112.4 87.2
06/30/19 0.0090 95,814 - 95,814 95,184 100.7 89.3
06/30/18 0.0088 93,799 121,511 96,188 97.5 88.8
06/30/17 0.0090 121,511 121,511 89,111 136.4 85.4
06/30/16 0.0090 361,186 361,186 84,960 425.1 63.9
06/30/15 0.0090 102,261 102,261 61,377 166.6 86.6
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
Statutorily Statutorily Contribution City's Contributions as
Required Required Deficiency Covered a Percentage of
Year Contribution Contribution (Excess) Payroll Covered Payroll
Ending (a) (b) (a-b) (c) (b/c)
12/31/21 $ 21,738 $ 21,738 $ - $ 122,814 17.70 %
12/31/20 20,812 20,812 - 122,785 16.95
12/31/19 17,055 17,055 - 105,275 16.20
12/31/18 15,197 15,197 - 93,809 16.20
12/31/17 14,820 14,820 - 91,482 16.20
12/31/16 14,111 14,111 - 87,106 16.20
12/31/15 9,943 9,943 - 61,378 16.20
Note:Schedule is intended to show 10 year trend.Additional years will be reported as they become available.
95
City of Albertville, Minnesota
Required Supplementary Information (Continued)
For the Year Ended December 31,2021
Notes to the Required Supplementary Information - Police and Fire Fund
Changes in Actuarial Assumptions
2021 -The investment return and single discount rates were changed from 7.50 percent to 6.50 percent,for financial
reporting purposes.The inflation assumption was changed from 2.50 percent to 2.25 percent. The payroll growth
assumption was changed from 3.25 percent to 3.00 percent.The base mortality table for healthy annuitants and
employees was changed from the RP-2014 table to the Pub-2010 Public Safety Mortality table.The mortality improvement
scale was changed from MP-2019 to MN-2020.The base mortality table for disabled annuitants was changed from the
RP-2014 healthy annuitant mortality table(with future mortality improvement according to Scale MP-2019)to the Pub-
2010 Public Safety disabled annuitant mortality table(with future mortality improvement according to Scale MP-2020).
Assumed rates of salary increase were modified as recommended in the July 14, 2020 experience study.The overall
impact is a decrease in gross salary increase rates.Assumed rates of retirement were changed as recommended in the
July 14,2020 experience study. The changes result in slightly more unreduced retirements and fewer assumed early
retirements. Assumed rates of withdrawal were changed from select and ultimate rates to service-based rates.The
changes result in more assumed terminations. Assumed rates of disability were increased for ages 25-44 and decreased
for ages over 49. Overall, proposed rates result in more projected disabilities.Assumed percent married for active female
members was changed from 60 percent to 70 percent. Minor changes to form of payment assumptions were applied.
2020 -The mortality projection scale was changed from MP-2018 to MP-2019.
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.
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 year thereafter.
96
City of Albertville, Minnesota
Required Supplementary Information (Continued)
For the Year Ended December 31,2021
Notes to the Required Supplementary Information - Police and Fire Fund (Continued)
Changes in Plan Provisions
2021 -No changes noted.
2020 -No changes noted.
2019 -No changes noted.
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 end date 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 and 2.00 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 rates were 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.
2016-No changes noted.
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,to a fixed rate of 2.5 percent.
97
City of Albertville, Minnesota
Required Supplementary Information (Continued)
For the Year Ended December 31,2021
Schedule of Changes in the Fire Relief Association's Net Pension Liability(Asset)and Related Ratios
2021 2020 2019 2018 2017 2016 2015
Total Pension Liability
Service cost $ 33,673 $ 32,852 $ 32,747 $ 29,490 $ 15,570 $ 16,177 $ 14,820
Interest on pension liability(asset) 33,067 34,839 31,217 27,065 30,956 32,273 35,420
Changes of benefit terms 77,330 - 37,505 40,146 104,288 - -
Differences between expected and actual experience - - - -
Gain or loss (3,488) (5,308) (40,750)
Changes of assumptions 10,363 (9,656) (21,365)
Benefit payments (46,480) (155,000) - (33,851) (41,296) (127,238) -
Net Change in Total Pension Liability 104,465 (87,309) 86,505 62,850 47,403 (78,788) 50,240
Total Pension Liability-January 1 590,780 678,089 591,584 528,734 481,331 560,119 509,879
Total Pension Liability-December 31(a) $ 695,245 $ 590,780 $ 678,089 $ 591,584 $ 528,734 $ 481,331 $ 560,119
Plan Fiduciary Net Position
Employer contributions $ - $ - $ - $ - $ - $ - $ 11,877
Nonemployer contributions 88,875 79,430 67,699 65,732 69,454 65,940 37,411
Projected investment return - 46,140 44,300 37,625 45,246 46,826 45,479
Gain(loss) 86,458 107,361 (85,101) 48,772 (15,836) (53,155) (16,151)
Benefit payments (46,480) (155,000) - (33,851) (41,296) (127,238)
Administrative expenses (1,498) (2,513) (2,182) (3,204) (2,835) (5,205)
Other 6,966
Net Change in Plan Fiduciary Net Position 134,321 75,418 24,716 115,074 54,733 (67,627) 73,411
Plan Fiduciary Net Position-January 1 953,366 877,948 853,232 738,158 683,425 751,052 677,641
Plan Fiduciary Net Position-December 31(b) $ 1,087,687 $ 953,366 $ 877,948 $ 853,232 $ 738,158 $ 683,425 $ 751,052
Fire Relief's Net Pension Liability(Asset)-December 31(a-b) $ (392,442) $ (362,586) $ (199,859) $ (261,648) $ (209,424) $ (202,094) $ (190,933)
Plan Fiduciary Net Position as a Percentage
of the Total Pension Liability(b/a) 156.45% 161.37% 129.47% 144.23% 139.61% 141.99% 134.09%
Covered-employee Payroll N/A N/A N/A N/A N/A N/A N/A
Fire Relief's Net Pension Liability(Asset)as a Percentage
of Covered-employee Payroll N/A N/A N/A N/A N/A N/A N/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 ofAssumptions. 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.
98
City of Albertville, Minnesota
Required Supplementary Information (Continued)
For the Year Ended December 31,2021
Schedule of Employer's Fire Relief Association Contributions
Actuarial Actual Contribution
Determined Contributions Deficiency
Year Contribution Paid (Excess)
Ending (a) (b) (a-b)
12/31/21 * $ - $ - $
12/31/20 183,554 183,554
12/31/19 184,292 188,037 (3,745)
12/31/18 144,183 183,253 (39,070)
12/31/17 144,183 181,662 (37,479)
12/31/16 165,022 203,653 (38,631)
12/31/15 44,859 44,859
12/31/14 49,288 49,288 -
* Information not available at time of audit.
Note:Schedule is intended to show 10-year trend. Additional years will be reported as they become available.
99
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100
COMBINING AND INDIVIDUAL FUND
FINANCIAL STATEMENTS AND SCHEDULES
CITY OF ALBERTVILLE
ALBERTVILLE, MINNESOTA
FOR THE YEAR ENDED
DECEMBER 31, 2021
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102
NONMAJOR GOVERNMENTAL FUNDS
CITY OF ALBERTVILLE
ALBERTVILLE, MINNESOTA
FOR THE YEAR ENDED
DECEMBER 31, 2021
103
City of Albertville, Minnesota
Nonmajor Governmental Funds
Combining Balance Sheet
December 31,2021
Total
Special Capital Nonmajor
Revenue Projects Funds
Assets
Cash and temporary investments $ 519,639 $ 153,817 $ 673,456
Liabilities
Accounts and contracts payable $ - $ 26,600 $ 26,600
Advances from other funds - 358,730 358,730
Unearned revenue 364,444 - 364,444
Total Liabilities 364,444 385,330 749,774
Fund Balances
Restricted - 121,215 121,215
Committed 155,950 - 155,950
Unassigned (755) (352,728) (353,483)
Total Fund Balances 155,195 (231,513) (76,318)
Total Liabilities and Fund Balances $ 519,639 $ 153,817 $ 673,456
104
City of Albertville, Minnesota
Nonmajor Governmental Funds
Combining Statement of Revenues, Expenditures and
Changes in Fund Balances
For the Year Ended December 31,2021
Total
Special Capital Nonmajor
Revenue Projects Funds
Revenues
Tax increments $ - $ 220,464 $ 220,464
Interest on investments (loss) (948) (257) (1,205)
Total Revenues (948) 220,207 219,259
Expenditures
Current
Economic development - 165,380 165,380
Debt Service
Interest - 15,169 15,169
Total Expenditures - 180,549 180,549
Excess (Deficiency) of Revenues
Over(Under) Expenditures (948) 39,658 38,710
Other Financing Sources (Uses)
Transfers out - (21,937) (21,937)
Net Change in Fund Balances (948) 17,721 16,773
Fund Balances,January 1 156,143 (249,234) (93,091)
Fund Balances, December 31 $ 155,195 $ (231,513) $ (76,318)
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106
NONMAJOR SPECIAL REVENUE FUNDS
Special revenue funds are established to account for specific revenue or other sources that are designated for financing
particular functions or activities as required by deferral regulations, Minnesota statue, City charter provisions, local
ordinances, or specific gran agreements. Most of the special revenue funds are related to specific Federal and State
housing programs or grants for specific activities.
Economic Development Loan Fund -This fund accounts for the accumulation of resources and payments made for the
Economic Development Loan activity.
ARPA-This fund accounts for the accumulation of resources and payments made for the American Rescue Plan Act
activity.
107
City of Albertville, Minnesota
Nonmajor Special Revenue Funds
Combining Balance Sheet
December 31,2021
Special
Revenue
104 205
Economic
Development
Loan Fund ARPA Total
Assets
Cash and temporary investments $ 155,950 $ 363,689 $ 519,639
Liabilities
Unearned revenue $ - $ 364,444 $ 364,444
Fund Balances
Committed 155,950 - 155,950
Unassigned - (755) (755)
Total Fund Balances 155,950 (755) 155,195
Total Liabilities and Fund Balances $ 155,950 $ 363,689 $ 519,639
108
City of Albertville, Minnesota
Nonmajor Special Revenue Funds
Combining Statement of Revenues, Expenditures and
Changes in Fund Balances
For the Year Ended December 31,2021
Special
Revenue
104 205
Economic
Development
Loan Fund ARPA Total
Revenues
Interest on investments (loss) $ (193) $ (755) $ (948)
Fund Balances,January 1 156,143 - 156,143
Fund Balances, December 31 $ 155,950 $ (755) $ 155,195
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110
NONMAJOR CAPITAL PROJECTS FUNDS
Capital projects funds are used to account for the acquisition and construction of major capital facilities other than those
financed by enterprise funds.
TIF#7 Senior Housina-This fund was created to facilitate the construction of the Senior Housing project within the City.
This fund accounts for the financial activity related to that project.
TIF#14 Fraser Steel -This fund was created to facilitate the Fraser Steel project within the City. This fund accounts for
the financial activity related to that project.
TIF#15 Guardian Angels -This fund was created to facilitate the Fraser Steel project within the City.This fund accounts
for the financial activity related to that project.
TIF#16 Mold Tech-This fund was created to facilitate the Mold Tech project 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 Old Castle
project.
111
City of Albertville, Minnesota
Nonmajor Capital Projects Funds
Combining Balance Sheet
December 31,2021
407 414 415
TIF#7 TIF#14 TIF#15
Senior Fraser Guardian
Housing Steel Angels
Assets
Cash and temporary investments $ 59,130 $ 26,600 $ 62,085
Liabilities
Accounts and contracts payable $ - $ 26,600 $ -
Advances from other funds - - -
Total Liabilities - 26,600 -
Fund Balances
Restricted 59,130 - 62,085
Unassigned - - -
Total Fund Balances 59,130 - 62,085
Total Liabilities and Fund Balances $ 59,130 $ 26,600 $ 62,085
112
416 417
TIF#16 TIF#17
Mold Old
Tech Castle Total
$ 5,033 $ 969 $ 153,817
$ - $ - $ 26,600
5,821 352,909 358,730
5,821 352,909 385,330
- - 121,215
(788) (351,940) (352,728)
(788) (351,940) (231,513)
$ 5,033 $ 969 $ 153,817
113
City of Albertville, Minnesota
Nonmajor Capital Projects Funds
Combining Statement of Revenues, Expenditures and
Changes in Fund Balances
For the Year Ended December 31,2021
407 414 415
TIF#7 TIF#14 TIF#15
Senior Fraser Guardian
Housing Steel Angels
Revenues
Tax increments $ 39,422 $ 26,600 $ 84,255
Interest on investments (loss) (78) - (87)
Total Revenues 39,344 26,600 84,168
Expenditures
Current
Economic development 33,961 37,350 76,221
Debt Service
Interest - - -
Total Expenditures 33,961 37,350 76,221
Excess (Deficiency) of Revenues
Over(Under) Expenditures 5,383 (10,750) 7,947
Other Financing Uses
Transfers out - (21,937) -
Net Change in Fund Balances 5,383 (32,687) 7,947
Fund Balances,January 1 53,747 32,687 54,138
Fund Balances, December 31 $ 59,130 $ - $ 62,085
114
416 417
TIF#16 TIF#17
Mold Old
Tech Castle Total
$ 19,776 $ 50,411 $ 220,464
(7) (85) (257)
19,769 50,326 220,207
17,472 376 165,380
- 15,169 15,169
17,472 15,545 180,549
2,297 34,781 39,658
- - (21,937)
2,297 34,781 17,721
(3,085) (386,721) (249,234)
$ (788) $ (351,940) $ (231,513)
115
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 31,2021
(With Comparative Actual Amounts for the Year Ended December 31,2020)
2021 2020
Budgeted Amounts Actual Variance with Actual
Original Final Amounts Final Budget Amounts
Revenues
Taxes
General property taxes $ 2,247,305 $ 2,247,305 $ 2,253,205 $ 5,900 $ 2,145,139
Licenses and permits
Business 27,000 27,000 32,928 5,928 66,686
Non-business 101,700 101,700 370,337 268,637 234,202
Total licenses and permits 128,700 128,700 403,265 274,565 300,888
Intergovernmental
Federal
CARES Act - - - - 563,922
State
Local government aid 115,635 115,635 115,251 (384) 112,010
Property tax credits - - 175 175 169
Other 116,700 116,700 171,128 54,428 164,094
Total intergovernmental 232,335 232,335 286,554 54,219 840,195
Charges for services
General government 330,813 330,813 508,427 177,614 357,063
Public safety 433,974 433,974 433,974 - 407,253
Culture and recreation 15,000 15,000 288,958 273,958 298,774
Total charges for services 779,787 779,787 1,231,359 451,572 1,063,090
Fines and forfeitures - - 500 500 -
Special assessments - - 15,416 15,416 28,905
Interest on investments 25,000 25,000 6,565 (18,435) 37,030
Miscellaneous
Other 15,000 15,000 40,769 25,769 15,183
Refunds and reimbursements - - 119,007 119,007 76,781
Total miscellaneous 15,000 15,000 159,776 144,776 91,964
Total Revenues 3,428,127 3,428,127 4,356,640 928,513 4,507,211
116
City of Albertville, Minnesota
General Fund
Schedule of Revenues,Expenditures and
Changes in Fund Balances-Budget and Actual(Continued)
For the Year Ended December 31,2021
(With Comparative Actual Amounts for the Year Ended December 31,2020)
2021 2020
Budgeted Amounts Actual Variance with Actual
Original Final Amounts Final Budget Amounts
Expenditures
Current
General government
Legislative
Personal services $ 20,668 $ 20,668 $ 20,880 $ (212) $ 20,023
Supplies 2,500 2,500 - 2,500 90
Other services and charges 24,105 24,105 18,308 5,797 23,460
Total legislative 47,273 47,273 39,188 8,085 43,573
Administration
Personal services 145,350 145,350 137,074 8,276 136,480
Supplies 5,000 5,000 1,175 3,825 2,213
Other services and charges 14,000 14,000 9,212 4,788 6,603
Total administration 164,350 164,350 147,461 16,889 145,296
City clerk
Personal services 87,668 87,668 92,433 (4,765) 69,102
Supplies 9,500 9,500 12,221 (2,721) 7,527
Other services and charges 39,053 39,053 42,066 (3,013) 55,488
Total city clerk 136,221 136,221 146,720 (10,499) 132,117
Elections and voter registration
Personal services - - - 1,396
Supplies - - - - 37
Other services and charges 25,000 25,000 1,780 23,220 32,802
Total elections and voter registration 25,000 25,000 1,780 23,220 34,235
Treasurer
Personal services 86,901 86,901 82,179 4,722 78,175
Supplies 7,200 7,200 1,692 5,508 871
Other services and charges 21,950 21,950 15,093 6,857 13,629
Total treasurer 116,051 116,051 98,964 17,087 92,675
Assessing
Other services and charges 40,100 40,100 42,424 (2,324) 38,913
Legal
Other services and charges 40,000 40,000 51,256 (11,256) 39,602
117
City of Albertville, Minnesota
General Fund
Schedule of Revenues,Expenditures and
Changes in Fund Balances-Budget and Actual(Continued)
For the Year Ended December 31,2021
(With Comparative Actual Amounts for the Year Ended December 31,2020)
2021 2020
Budgeted Amounts Actual Variance with Actual
Original Final Amounts Final Budget Amounts
Expenditures(Continued)
Current(continued)
General government(continued)
Engineering
Other services and charges $ 25,000 $ 25,000 $ 50,783 $ (25,783) $ 56,923
Miscellaneous
Personal services 26,247 26,247 23,355 2,892 25,140
Supplies 1,500 1,500 440 1,060 1,426
Other services and charges 215,868 215,868 376,812 (160,944) 266,431
Total miscellaneous 243,615 243,615 400,607 (156,992) 292,997
Total general government 837,610 837,610 979,183 (141,573) 876,331
Public safety
Police protection
Other services and charges 835,485 835,485 835,485 801,906
Fire protection
Personal services 426,791 426,791 474,180 (47,389) 442,356
Supplies 19,456 19,456 30,885 (11,429) 19,342
Other services and charges 111,700 111,700 123,584 (11,884) 110,989
Total fire protection 557,947 557,947 628,649 (70,702) 572,687
Protective inspection
Personal services 116,404 116,404 108,389 8,015 108,199
Supplies 1,350 1,350 810 540 435
Other services and charges 134,970 134,970 133,719 1,251 138,238
Total protective inspection 252,724 252,724 242,918 9,806 246,872
Animal control
Other services and charges 9,000 9,000 10,570 (1,570) 7,882
Total public safety 1,655,156 1,655,156 1,717,622 (62,466) 1,629,347
118
City of Albertville, Minnesota
General Fund
Schedule of Revenues,Expenditures and
Changes in Fund Balances-Budget and Actual(Continued)
For the Year Ended December 31,2021
(With Comparative Actual Amounts for the Year Ended December 31,2020)
2021 2020
Budgeted Amounts Actual Variance with Actual
Original Final Amounts Final Budget Amounts
Expenditures(Continued)
Current(continued)
Public works
Streets
Personal services $ 264,376 $ 264,376 $ 241,534 $ 22,842 $ 246,568
Supplies 39,300 39,300 30,980 8,320 25,906
Other services and charges 61,200 61,200 56,683 4,517 61,722
Total streets 364,876 364,876 329,197 35,679 334,196
Street lighting
Other services and charges 91,166 91,166 82,669 8,497 85,694
Total public works 456,042 456,042 411,866 44,176 419,890
Culture and recreation
Parks
Personal services 303,652 303,652 297,744 5,908 289,577
Supplies 22,347 22,347 17,286 5,061 23,102
Other services and charges 133,320 133,320 130,912 2,408 155,599
Total parks 459,319 459,319 445,942 13,377 468,278
Arena
Personal services - - 279,911 (279,911) 294,743
Total culture and recreation 459,319 459,319 725,853 (266,534) 763,021
Economic development
Other services and charges 50,000 50,000 38,592 11,408 39,694
Total current 3,458,127 3,458,127 3,873,116 (414,989) 3,728,283
Capital outlay
General government - - - 18,958
Public safety 87,283
Total capital outlay - - - 106,241
Total Expenditures 3,458,127 3,458,127 3,873,116 (414,989) 3,834,524
Excess of Revenues
Over Expenditures (30,000) (30,000) 483,524 513,524 672,687
Other Financing Sources(Uses)
Transfers in 171,937 171,937 -
Transfers out (1,631,756) (1,631,756)
Total Other Financing
Sources(Uses) (1,459,819) (1,459,819) -
Net Change in Fund Balances (30,000) (30,000) (976,295) (946,295) 672,687
Fund Balances,January 1 3,290,612 3,290,612 3,290,612 2,617,925
Fund Balances,December 31 $ 3,260,612 $ 3,260,612 $ 2,314,317 $ (946,295) $ 3,290,612
119
City of Albertville, Minnesota
Debt Service Fund
Combining Balance Sheet
December 31,2021
357 358 359 360
CSAH 19
2003A 2011C 2012B 2012A
G.O. G.O. CIP G.O. CIP G.O. Improv.
Improvement Refunding Refunding Refunding
Assets
Cash and temporary investments $ (12,699) $ 344,729 $ 16,504 $ 351,864
Receivables
Special assessments 221,099 - - 18,983
Interest - - - -
Notes - - - -
Advances to other funds - - -
Land held for resale 800,434 - - -
Total Assets $ 1,008,834 $ 344,729 $ 16,504 $ 370,847
Deferred Inflows of Resources
Unavailable revenue-special assessments $ 221,099 $ - $ - $ 18,983
Unavailable revenue-notes/intergovernmental - - - -
Total Deferred Inflows of Resources 221,099 - - 18,983
Fund Balances
Restricted
Debt service 787,735 344,729 16,504 351,864
Total Deferred Inflows
of Resources and Fund Balances $ 1,008,834 $ 344,729 $ 16,504 $ 370,847
120
361 362 468
Lachman Industrial
2012A 2012A
G.O. Improv. G.O. Improv.
Refunding Refunding Interstate 94 Total
$ 127,985 $ 328,676 $ 332,205 $ 1,489,264
135,788 53,380 382,345 811,595
- - 4,291 4,291
- - 804,632 804,632
- 358,730 - 358,730
- 420,519 - 1,220,953
$ 263,773 $ 1,161,305 $ 1,523,473 $ 4,689,465
$ 135,788 $ 53,380 $ 382,345 $ 811,595
- - 804,632 804,632
135,788 53,380 1,186,977 1,616,227
127,985 1,107,925 336,496 3,073,238
$ 263,773 $ 1,161,305 $ 1,523,473 $ 4,689,465
121
City of Albertville, Minnesota
Debt Service Fund
Combining Schedule of Revenues, Expenditures And
Changes in Fund Balances
For the Year Ended December 31,2021
357 358 359 360
CSAH 19
2003A 2011C 2012B 2012A
G.O. G.O. CIP G.O. CIP G.O. Improv.
Improvement Refunding Refunding Refunding
Revenues
Property taxes $ - $ 100,499 $ 261,208 $ 26,157
Special assessments 20,422 - - 19,625
Interest earnings - (461) (418) (445)
Miscellaneous - - - -
Total Revenues 20,422 100,038 260,790 45,337
Expenditures
Current
Public works - - - -
Debt service
Principal - 135,000 235,000 160,000
Interest and other - 20,331 26,150 8,100
Total Expenditures - 155,331 261,150 168,100
Net Change in Fund Balance 20,422 (55,293) (360) (122,763)
Fund Balances,January 1 767,313 400,022 16,864 474,627
Fund Balances, December 31 $ 787,735 $ 344,729 $ 16,504 $ 351,864
122
361 362
Lachman Industrial 468
2012A 2012A
G.O. Improv. G.O. Improv.
Refunding Refunding Interstate 94 Total
$ - $ 84,561 $ 53,000 $ 525,425
9,131 59,893 60,874 169,945
(163) 14,768 (356) 12,925
- - 78,376 78,376
8,968 159,222 191,894 786,671
- 7,552 - 7,552
55,000 105,000 174,000 864,000
2,550 3,850 28,579 89,560
57,550 116,402 202,579 961,112
(48,582) 42,820 (10,685) (174,441)
176,567 1,065,105 347,181 3,247,679
$ 127,985 $ 1,107,925 $ 336,496 $ 3,073,238
123
City of Albertville, Minnesota
Combining Statement of Fiduciary Net Position
Fiduciary Funds
December 31,2021
Albertville Total
Friendly Albertville STMA Custodial
City Days Lions Ice Arena Funds
Assets
Cash and temporary investments $ 9,719 $ 156,886 $ 319,914 $ 486,519
Accounts receivable - - 26,069 26,069
Inventory - - 2,196 2,196
Total Assets 9,719 156,886 348,179 514,784
Liabilities
Accounts payable - - 29,288 29,288
Accrued wages 9,989 9,989
Total Liabilities - - 39,277 39,277
Net Position
Restricted for organizations and other governments $ 9,719 $ 156,886 $ 308,902 $ 475,507
124
City of Albertville, Minnesota
Combining Statement of Changes in Fiduciary Net Position
Fiduciary Funds
For the Year Ended December 31,2021
Albertville Total
Friendly Albertville STMA Custodial
City Days Lions Ice Arena Funds
Additions
Contributions
Charges for services $ - $ - $ 677,552 $ 677,552
Donations 4,000 18,400 - 22,400
Concessions - - 31,661 31,661
Total Contributions 4,000 18,400 709,213 731,613
Investment earnings
Interest,dividends and other (12) (123) (334) (469)
Miscellaneous - - 22,906 22,906
Total Additions 3,988 18,277 731,785 754,050
Deductions
Professional services 3,923 32,942 292,598 329,463
Supplies - - 16,485 16,485
Utilties - - 209,886 209,886
Insurance - - 13,589 13,589
Repairs and Maintenance - - 86,367 86,367
Capital Outlay - - 7,905 7,905
Miscellaneous - - 20,722 20,722
Total Deductions 3,923 32,942 647,552 684,417
Net Increase (Decrease) in Fiduciary Net Position 65 (14,665) 84,233 69,633
Net Position,January 1 9,654 171,551 224,669 405,874
Net Position, December 31 $ 9,719 $ 156,886 $ 308,902 $ 475,507
125
City of Albertville, Minnesota
Summary Financial Report
Revenues and Expenditures For General Operations
Governmental Funds
For the Year Ended December 31,2021
Percent
Total Increase
2021 2020 (Decrease)
Revenues
Taxes $ 4,323,838 $ 4,221,332 2.43 %
Special assessments 232,077 352,949 (34.25)
Licenses and permits 403,265 300,888 34.02
Intergovernmental 302,106 2,077,442 (85.46)
Charges for services 2,131,559 1,076,374 98.03
Fines and forfeitures 500 - N/A
Interest on investments 11,191 190,441 (94.12)
Miscellaneous 262,487 181,825 44.36
Total Revenues $ 7,667,023 $ 8,401,251 (8.74) %
Per Capita $ 971 $ 1,117 (13.10) %
Expenditures
Current
General government $ 1,021,471 $ 920,918 10.92 %
Public safety 1,717,622 1,629,347 5.42
Public works 419,418 427,682 (1.93)
Culture and recreation 725,853 763,021 (4.87)
Economic development 203,972 210,170 (2.95)
Capital outlay
General government 870 20,405 (95.74)
Public safety 61,678 182,083 (66.13)
Public works 893,153 3,301,579 (72.95)
Culture and recreation 199,005 115,065 72.95
Economic development 24,000 27,732 (13.46)
Debt service
Principal 864,000 856,000 0.93
Interest and other 104,729 123,168 (14.97)
Total Expenditures $ 6,235,771 $ 8,577,170 (27.30) %
Per Capita $ 790 $ 1,141 (30.77) %
Total Long-term Indebtedness $ 4,233,610 $ 5,104,343 (17.06) %
Per Capita 536 679 (21.02)
General Fund Balance-December 31 $ 2,314,317 $ 3,290,612 (29.67) %
Per Capita 293 438 (33.03)
The purpose of this report is to provide a summary of financial information concerning the City of Albertville to interested
citizens. The complete financial statements may be examined at City Hall, 5959 Main Avenue,Albertville, MN 55301.
Questions about this report should be directed to Tina Lannes, Finance Director at (763) 497-3384.
126
STATISTICAL SECTION (UNAUDITED)
CITY OF ALBERTVILLE
ALBERTVILLE, MINNESOTA
FORTH E YEAR ENDED
DECEMBER 31, 2021
127
THIS PAGE IS LEFT
BLANK INTENTIONALLY
128
STATISTICAL SECTION
(Unaudited)
This part of the City of Albertville's annual comprehensive 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
and well-being have changed over time.
Revenue Capacity
These schedules contain information to help the reader assess the government's most significant local revenue source,
the property tax.
Debt Capacity
These schedules present information to help the reader assess the affordability of the government's current levels of
out-standing debt and the government's ability to issue additional debt in the future.
Demographic and Economic Information
These schedules offer demographic and economic indicators to help the reader understand the environment within
which the government's financial activities take place.
Operating Information
These schedules contain service and infrastructure data to help the reader understand how the information in the
government's financial report relates to the services the government provides and the activities it performs.
Sources: Unless otherwise noted, the information in these schedules is derived from the annual financial reports for the
relevant year.
129
City of Albertville, Minnesota
Statistical Section (Unaudited)
Net Position by Component
Last Ten Fiscal Years
(Accrual Basis of Accounting)
Fiscal Year
2012 2013 2014 2015
Governmental Activities
Net investment in capital assets $ 16,766,234 $ 16,761,614 $ 15,982,545 $ 16,000,840
Restricted 7,720,152 4,083,926 4,359,358 6,603,871
Unrestricted 4,082,002 3,545,424 4,482,132 4,287,635
Total Governmental Activities Net Position $ 28,920,974 $ 28,682,997 $ 28,568,388 $ 24,390,964
Business-type Activities
Net investment in capital assets $ 6,951,242 $ 7,345,829 $ 8,198,571 $ 8,423,132
Unrestricted 11,091,877 10,722,778 9,559,515 9,038,370
Total Business-type Activities Net Position $ 18,070,711 $ 18,043,119 $ 18,068,607 $ 17,758,086
Total Primary Government
Net investment in capital assets $ 23,717,476 $ 24,107,443 $ 24,181,116 $ 24,423,972
Restricted 7,720,152 4,083,926 4,359,358 6,603,871
Unrestricted 15,173,879 14,268,202 14,041,647 13,326,005
Total Primary Government $ 46,753,708 $ 46,611,507 $ 42,459,571 $ 42,582,121
Note:The City implemented GASB Statement No. 68 and GASB Statement No. 71 in 2015.
Years prior to 2015 have not been restated.
130
Table 1
Fiscal Year
2016 2017 2018 2019 2020 2021
$ 15,925,140 $ 16,653,225 $ 16,996,701 $ 17,512,792 $ 18,587,524 $ 18,777,874
3,240,957 3,543,926 3,482,527 5,398,928 5,120,588 5,683,392
8,260,766 8,191,522 8,651,739 7,289,708 7,153,029 8,481,228
$ 24,824,035 $ 28,388,673 $ 29,130,967 $ 30,201,428 $ 30,861,141 $ 32,942,494
$ 8,632,306 $ 8,717,564 $ 9,046,737 $ 10,922,191 $ 10,788,055 $ 11,001,276
8,856,604 9,562,439 9,489,105 9,102,051 10,545,577 11,685,984
$ 17,461,502 $ 17,488,910 $ 18,280,003 $ 20,024,242 $ 21,333,632 $ 22,687,260
$ 24,557,446 $ 25,370,789 $ 26,043,438 $ 28,434,983 $ 29,375,579 $ 29,779,150
3,240,957 3,543,926 3,482,527 5,398,928 5,120,588 5,683,392
17,117,370 17,753,961 18,140,844 16,391,759 17,698,606 20,167,212
$ 44,353,848 $ 44,915,773 $ 46,668,676 $ 50,225,670 $ 52,194,773 $ 55,629,754
131
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
2012 2013 2014 2015
Expenses
Governmental Activities
General government $ 1,108,505 $ 948,742 $ 923,711 $ 715,779
Public safety 1,129,863 1,075,760 1,103,431 1,222,679
Public works 1,434,202 2,090,108 1,461,319 1,636,968
Culture and recreation 478,016 505,161 558,881 569,429
Economic development 7,878,251 548,783 137,930 229,167
Interest on long-term debt 354,898 331,119 295,924 255,379
Total Governmental Activities Expenses 12,383,735 5,499,673 4,481,196 4,629,401
Business-type Activities
Sewer utility 824,526 1,024,449 946,586 961,507
Water utility 1,170,371 1,095,906 1,108,449 399,813
Storm Water utility 151,009 172,946 170,061 182,779
Recycling 78,830 79,948 81,024 81,689
Total Business-type Activities Expenses 2,224,736 2,373,249 2,306,120 1,625,788
Total Expenses $ 14,608,471 $ 7,872,922 $ 6,787,316 $ 6,255,189
Program Revenues
Governmental Activities
Charges for services
General government $ 498,706 $ 624,869 $ 574,438 $ 489,742
Public safety 117,011 157,752 161,373 227,250
Public works 700 3,250 1,200 2,500
Culture and recreation 166,826 178,550 234,694 154,851
Operating grants and contributions 8,309,198 165,255 249,041 230,499
Capital grants and contributions 102,796 127,438 340,632 2,000,970
Total Governmental Activities Program Revenues 9,195,237 1,257,114 1,561,378 3,105,812
Business-type Activities
Charges for services
Sewer utility 716,448 730,933 728,308 752,094
Water utility 1,066,130 975,753 917,507 256,040
Storm Water utility 220,943 226,677 228,659 251,960
Recycling 78,144 80,115 80,659 81,223
Operating grants and contributions 10,926 19,352 18,657 64,001
Capital grants and contributions 116,394 368,310 154,336 122,884
Total Business-Type Activities Program Revenues 2,208,985 2,401,140 2,128,126 1,528,202
Total Program Revenues $ 11,404,222 $ 3,658,254 $ 3,689,504 $ 4,634,014
Note:The City implemented GASB Statement No. 68 and GASB Statement No.71 in 2015.
Years prior to 2015 have not been restated.
132
Table 2
Fiscal Year
2016 2017 2018 2019 2020 2021
$ 858,450 $ 822,891 $ 737,375 $ 767,343 $ 1,058,803 $ 1,154,441
1,602,075 1,548,674 1,529,785 1,877,457 1,941,340 1,879,989
1,631,343 1,385,420 1,757,764 1,195,560 3,185,369 1,689,856
617,041 788,338 611,258 1,069,989 882,232 871,722
117,086 182,059 221,319 223,663 237,902 227,972
197,099 228,006 167,872 191,958 149,493 130,847
5,023,094 4,955,388 5,025,373 5,325,970 7,455,139 5,954,827
846,349 805,318 818,418 1,102,919 1,111,727 1,067,137
418,260 369,100 411,151 451,246 417,826 414,208
187,029 265,436 272,024 252,627 290,418 225,386
94,580 95,850 106,514 118,359 117,364 118,432
1,546,218 1,535,704 1,608,107 1,925,151 1,937,335 1,825,163
$ 6,569,312 $ 6,491,092 $ 6,633,480 $ 7,251,121 $ 9,392,474 $ 7,779,990
$ 437,398 $ 630,143 $ 608,525 $ 544,149 $ 640,044 $ 878,311
258,553 276,445 296,707 335,444 458,866 435,005
1,700 5,300 3,050 1,750 4,350 4,250
195,815 229,772 165,908 87,525 301,435 1,193,567
240,569 265,983 193,526 191,470 852,421 403,935
99,914 118,011 150,340 359,247 1,324,103 677,714
1,233,949 1,525,654 1,418,056 1,519,585 3,581,219 3,592,782
786,153 848,544 868,052 866,602 1,072,549 1,147,984
272,503 355,075 362,737 348,310 411,854 452,529
222,630 213,666 211,420 209,206 222,281 281,058
87,444 82,867 94,134 105,028 95,461 116,919
15,954 18,240 16,794 22,416 22,273 17,930
114,742 683,125 201,561 1,515,818 1,203,165 1,129,841
1,499,426 2,201,517 1,754,698 3,067,380 3,027,583 3,146,261
$ 2,733,375 $ 3,727,171 $ 3,172,754 $ 4,586,965 $ 6,608,802 $ 6,739,043
133
City of Albertville, Minnesota
Statistical Section(Unaudited)
Changes in Net Position(Continued)
Last Ten Fiscal Years
(Accrual Basis of Accounting)
Fiscal Year
2012 2013 2014 2015
Net Revenues(Expenses)
Governmental activities $ (3,188,498) $ (4,242,559) $ (2,919,818) $ (1,523,589)
Business-type activities (15,751) 27,891 (177,994) (97,586)
Total Primary Government Revenues(Expenses) $ (3,204,249) $ (4,214,668) $ (3,097,812) $ (1,621,175)
General Revenues and Other Changes in Net Position
General Revenues
Governmental Activities
Taxes
Property taxes,levied for general purpose $ 2,448,719 $ 2,491,895 $ 2,478,224 $ 2,606,772
Property taxes,levied for debt service 715,157 657,878 805,791 885,270
Tax increments 26,716 26,715 28,648 109,132
Grants and contributions not restricted to specific programs 10,280 13,681 90,269 98,932
Unrestricted investment earnings 99,042 (48,206) 182,322 86,644
Gain on sale of capital assets - - 3,450
Miscellaneous - 132,569
Transfers (50,000) 330,236 -
Special item-decrease in land held for resale - (3,026,828) - -
Total Governmental Activities General Revenues 3,299,914 65,135 3,915,490 3,922,769
Business-type Activities
Unrestricted investment earnings 99,440 (52,403) 197,709 89,694
Transfers - 50,000 (330,236) -
Total Business-type Activities General Revenues 99,440 (2,403) (132,527) 89,694
Total Primary Government $ 3,399,354 $ 62,732 $ 3,782,963 $ 4,012,463
Change in Net Position
Governmental activities $ 111,416 $ (4,177,424) $ 995,672 $ 2,399,180
Business-type activities 83,689 25,488 (310,521) (7,892)
Total Primary Government $ 195,105 $ (4,151,936) $ 685,151 $ 2,391,288
Note:The City implemented GASB Statement No. 68 and GASB Statement No.71 in 2015.
Years prior to 2015 have not been restated.
134
Table 2
Fiscal Year
2016 2017 2018 2019 2020 2021
$ (3,789,145) $ (3,429,734) $ (3,607,317) $ (3,806,385) $ (3,873,920) $ (2,362,045)
(46,792) 665,813 146,591 1,142,229 1,090,248 1,321,098
$ (3,835,937) $ (2,763,921) $ (3,460,726) $ (2,664,156) $ (2,783,672) $ (1,040,947)
$ 2,746,144 $ 2,839,090 $ 3,054,845 $ 3,497,033 $ 3,469,449 $ 3,614,097
921,796 916,050 831,410 508,855 506,868 472,425
169,651 230,131 231,247 232,684 240,457 220,464
102,311 93,140 111,979 113,056 126,418 115,426
103,541 138,248 120,130 384,339 190,441 11,191
- 49,020 - 140,879 - -
280,219 172,681 - 9,795
- (46,816) -
4,323,662 4,391,544 4,349,611 4,876,846 4,533,633 4,443,398
74,200 78,464 109,248 346,171 219,142 32,530
- 46,816 - - - -
74,200 125,280 109,248 346,171 219,142 32,530
$ 4,397,862 $ 4,516,824 $ 4,458,859 $ 5,223,017 $ 4,752,775 $ 4,475,928
$ 534,517 $ 961,810 $ 742,294 $ 1,070,461 $ 659,713 $ 2,081,353
27,408 791,093 255,839 1,488,400 1,309,390 1,353,628
$ 561,925 $ 1,752,903 $ 998,133 $ 2,558,861 $ 1,969,103 $ 3,434,981
135
City of Albertville, Minnesota
Statistical Section (Unaudited)
Fund Balances of Governmental Funds
Last Ten Fiscal Years
Fiscal Year
2012 2013 2014 2015
General Fund
Nonspendable $ 69,759 $ 51,000 $ 51,000 $ 51,000
Unassigned 1,248,815 1,450,586 1,798,358 1,876,186
Total General Fund $ 1,318,574 $ 1,501,586 $ 1,849,358 $ 1,927,186
All Other Governmental Funds
Nonspendable $ - $ 10 $ 13,184 $ 2,695
Restricted 7,827,860 4,353,603 5,276,492 3,263,871
Committed - - - -
Assigned 9,422,484 9,456,557 9,920,395 5,969,374
Unassigned (746,029) (767,766) (971,681) (842,241)
Total All Other Governmental Funds $ 16,504,315 $ 13,042,404 $ 14,238,390 $ 8,393,699
136
Table 3
Fiscal Year
2016 2017 2018 2019 2020 2021
$ 51,000 $ 51,000 $ 133,328 $ 140,151 $ 90,389 $ 136,098
1,887,922 2,258,988 2,252,982 2,477,774 3,200,223 2,178,219
$ 1,938,922 $ 2,309,988 $ 2,386,310 $ 2,617,925 $ 3,290,612 $ 2,314,317
$ 1,614 $ - $ - $ - $ - $ -
3,272,492 3,670,865 3,758,526 3,387,291 3,388,480 4,090,889
- - - 152,836 156,143 155,950
6,412,396 6,076,678 6,390,844 4,853,536 3,965,154 5,634,162
(469,839) (514,315) (432,912) (425,086) (389,806) (353,483)
$ 9,216,663 $ 9,233,228 $ 9,716,458 $ 7,968,577 $ 7,119,971 $ 9,527,518
137
City of Albertville, Minnesota
Statistical Section (Unaudited)
Changes in Fund Balances of Governmental Funds
Last Ten Fiscal Years
Fiscal Year
2012 2013 2014 2015
Revenues
Taxes $ 3,182,549 $ 3,212,853 $ 3,302,350 $ 3,596,744
Licenses and permits 129,088 213,277 167,584 197,878
Intergovernmental 5,881,766 158,861 209,667 1,958,201
Charges for services 707,161 1,097,560 857,837 648,359
Fines and forfeitures 200 - - 1,000
Special assessments 274,016 306,453 384,727 434,682
Interest on investments 143,346 (80,585) 282,344 86,644
Miscellaneous 89,326 203,566 214,302 358,035
Total Revenues 10,407,452 5,111,985 5,418,811 7,281,543
Expenditures
General government 1,002,640 808,790 748,364 606,158
Public safety 1,031,034 972,893 1,006,524 1,154,656
Public works 393,248 403,811 413,536 634,542
Culture and recreation 346,895 353,316 401,593 387,025
Economic development 54,048 261,318 96,866 203,626
Capital Outlay 7,892,095 1,040,402 328,322 841,615
Debt service
Principal 590,000 805,700 918,000 3,191,851
Interest 228,682 315,036 288,757 234,925
Bond issuance costs 67,308 - 7,458 -
Total Expenditures 11,605,950 4,961,266 4,209,420 7,254,398
Excess (Deficiency) of Revenues
Over(Under) Expenditures (1,198,498) 150,719 1,209,391 27,145
Other Financing Sources (Uses)
Transfers in 626,728 697,254 868,993 344,000
Bonds refunded 5,055,000 - 528,062 -
Bond issuance 3,278,551 - - 235,000
Payment to refunded bond escrow agent (3,250,353) - - -
Premiums on bonds sold 58,112 - - -
Sale of capital assets - - - 3,450
Transfers out (831,121) (1,100,044) (1,062,688) (344,000)
Total Other Financing
Sources (Uses) 4,936,917 (402,790) 334,367 238,450
Special Item
Decrease in land held for resale - (3,026,828) - -
Net Change in Fund Balances $ 3,738,419 $ (3,278,899) $ 1,543,758 $ 265,595
Debt Service as a Percentage of
Noncapital Expenditures 7.1% 26.0% 29.6% 52.5%
138
Table 4
Fiscal Year
2016 2017 2018 2019 2020 2021
$ 3,840,259 $ 4,018,573 $ 4,109,257 $ 4,233,810 $ 4,221,332 $ 4,323,838
174,928 239,833 258,992 215,108 300,888 403,265
282,508 268,493 312,506 438,035 2,077,442 302,106
662,313 888,979 845,182 1,004,236 1,076,374 2,131,559
- 200 1,500 500 - 500
246,350 196,021 291,412 259,787 352,949 232,077
103,541 138,248 120,130 384,339 190,441 11,191
537,803 385,472 175,104 138,771 181,825 262,487
5,847,702 6,135,819 6,114,083 6,674,586 8,401,251 7,667,023
738,974 735,742 894,542 791,250 920,918 1,021,471
1,302,463 1,350,500 1,395,937 1,557,191 1,629,347 1,717,622
431,596 387,744 411,944 437,365 427,682 419,418
445,486 501,693 533,359 748,116 763,021 725,853
76,875 141,632 175,193 178,507 210,170 203,972
883,733 1,470,904 1,010,977 3,380,525 3,646,864 1,178,706
963,240 962,822 992,000 939,000 856,000 864,000
170,635 198,979 140,579 165,017 123,168 104,729
5,013,002 5,750,392 5,554,531 8,196,971 8,577,170 6,235,771
834,700 385,427 559,552 (1,522,385) (175,919) 1,431,252
295,133 323,424 50,068 151,390 - 1,803,693
49,020 - 6,119 - -
(295,133) (370,240) (50,068) (151,390) - (1,803,693)
- 2,204 - 6,119 -
$ 834,700 $ 387,631 $ 559,552 $ (1,516,266) $ (175,919) $ 1,431,252
25.2% 26.4% 24.5% 20.6% 14.4% 18.3%
139
City of Albertville, Minnesota
Statistical Section(Unaudited)
Tax Capacity,Market Value and Estimated Actual Value of Taxable Property
(Shown by Year of Tax Collectability)
2012 2013 2014 2015
Taxable Market Value
Personal property $ 4,870,500 $ 5,275,300 $ 5,239,900 $ 5,279,500
Real estate 523,802,300 468,964,700 500,588,200 542,867,500
Total Taxable Market Value $ 528,672,800 $ 474,240,000 $ 505,828,100 $ 548,147,000
Estimated Actual Value of Taxable Property $ 528,672,800 $ 474,240,000 $ 556,863,100 $ 595,816,100
Taxable Market Value as a Percentage of
Estimated Actual Value 100.00 % 100.00 % 90.84 % 92.00 %
Tax Capacity
Personal property $ 95,065 $ 103,190 $ 102,426 $ 103,325
Real estate 6,663,367 6,088,709 6,379,976 6,780,598
Subtotal 6,758,432 6,191,899 6,482,402 6,883,923
Less:tax increment (21,696) (21,696) (23,265) (79,615)
Net Tax Capacity $ 6,736,736 $ 6,170,203 $ 6,459,137 $ 6,804,308
Tax levies
General $ 2,429,769 $ 2,423,781 $ 2,397,983 $ 2,547,180
Debt service 712,503 781,325 902,141 949,967
Total $ 3,142,272 $ 3,205,106 $ 3,300,124 $ 3,497,147
Tax capacity rate
General 36.067 % 39.282 % 37.125 % 37.435
Debt service 10.576 12.663 13.967 13.961
Total 46.644 % 51.945 % 51.092 % 51.396
Source: Wright County Auditor/Treasurer Department
140
Table 5
2016 2017 2018 2019 2020 2021
$ 5,442,200 $ 6,101,100 $ 6,101,100 $ 6,389,500 $ 7,128,500 $ 5,738,000
567,786,000 656,054,200 656,054,200 707,392,300 745,489,800 832,227,900
$ 573,228,200 $ 662,155,300 $ 662,155,300 $ 713,781,800 $ 752,618,300 $ 837,965,900
$ 620,513,900 $ 705,380,300 $ 705,380,300 $ 758,532,600 $ 804,315,050 $ 853,083,000
92.38 % 93.87 % 93.87 % 94.10 % 93.57 % 98.23 %
$ 106,630 $ 111,611 $ 119,863 $ 125,822 $ 140,544 $ 155,457
7,026,956 7,384,373 7,961,892 8,513,031 8,952,664 9,255,718
7,133,586 7,495,984 8,081,755 8,638,853 9,093,208 9,411,175
(123,377) (169,948) (171,863) (171,188) (179,241) (186,700)
$ 7,010,209 $ 7,326,036 $ 7,909,892 $ 8,467,665 $ 8,913,967 $ 9,224,475
$ 2,749,549 $ 2,863,190 $ 3,056,908 $ 3,442,876 $ 3,414,096 $ 3,572,049
921,691 916,045 831,410 561,855 781,384 745,104
$ 3,671,240 $ 3,779,235 $ 3,888,318 $ 4,004,731 $ 4,195,480 $ 4,317,153
39.222 % 39.082 % 38.647 % 40.659 % 38.301 % 38.724 %
13.148 12.504 10.511 6.635 8.766 8.077
52.370 % 51.586 % 49.158 % 47.294 % 47.066 % 46.801 %
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142
City of Albertville, Minnesota Table 6
Statistical Section (Unaudited)
Property Tax Capacity Rates-Direct and Overlapping Governments
(Per$1,000 of Tax Capacity)
Overlapping Rates
Year School School
Taxes District District
Payable City County No. 885 No. 728
2012 46.644 % 43.449 % 52.630 % 45.542 %
2013 51.945 44.285 57.195 50.051
2014 51.092 43.450 51.553 51.279
2015 51.396 40.530 51.082 51.635
2016 52.370 39.970 49.102 39.266
2017 51.586 39.599 46.893 36.659
2018 49.158 39.946 47.950 36.137
2019 47.294 44.273 47.143 32.865
2020 47.066 44.421 45.280 34.371
2021 43.717 46.801 44.205 31.712
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).
143
City of Albertville, Minnesota
Statistical Section (Unaudited)
Principal Taxpayers
Current Year and Ten Years Ago
December 31,2021
2021
Percent
Tax of Total
Taxpayer Capacity Rank Tax Capacity
CPG Partners, LP $ 1,045,704 1 11.34 %
Albertville Station LLC 190,572 2 2.07
Border States Industries, Inc. 92,346 3 1.00
Centerpoint Energy 91,702 4 0.99
GMR Albertville LC 83,808 5 0.91
Fraser Building LP 74,650 6 0.81
Mollie LLC 72,820 7 0.79
Evans Park Inc 67,015 8 0.73
HGP Architectural Glass, Inc. 58,002 9 0.63
EPK Family Fund LLC 57,678 10 0.63
CWB Albertville Crossing, LLC - -
Albertville Medical Building, LLC - -
William A Hinks, LLC - -
Albertville Plaza, LLC - -
Welcome Furniture and Appliances - -
Minnegasco, Inc - -
Lake Community Bank - -
Albertville Lodging, LLC - -
Totals $ 1,834,297 19.89 %
Source: Wright County Auditor/Treasurer Department
144
Table 7
2012
Percent
Tax of Total
Capacity Rank Tax Capacity
$ 1,097,256 1 16.29 %
65,422 5 1
212,692 2 -
80,732 3 1.20
69,250 4 1.03
56,256 6 0.84
50,312 7 0.75
49,253 8 0.73
43,694 9 0.65
41,786 10 0.62
$ 1,766,653 23.07 %
145
City of Albertville, Minnesota Table 8
Statistical Section (Unaudited)
Property Tax Levies and Collections
Last Ten Fiscal Years
(1) Percent
Collection Percentage Collection of Total
Fiscal Total of Current of Levy in Subsequent Total Collections
Year Levy Year's Levy Collected Years Collections to Levy
2012 $ 3,142,272 $ 3,122,843 99.38 % $ 16,938 $ 3,139,781 99.92 %
2013 3,205,106 3,160,647 98.61 35,279 3,195,926 99.71
2014 3,300,124 3,263,343 98.89 44,808 3,308,151 100.24
2015 3,497,147 3,461,796 98.99 24,315 3,486,111 99.68
2016 3,671,240 3,641,148 99.18 11,191 3,652,339 99.49
2017 3,779,235 3,753,984 99.33 6,748 3,760,732 99.51
2018 3,888,318 3,864,947 99.40 4,101 3,869,048 99.50
2019 4,004,731 3,977,179 99.31 21,158 3,998,337 99.84
2020 4,195,480 4,177,746 99.58 9,732 4,187,478 99.81
2021 4,317,153 4,310,349 99.84 - 4,310,349 99.84
Source: Wright County Auditor/Treasurer Department
(1) Includes state paid property tax credits.
146
City of Albertville, Minnesota Table 9
Statistical Section(Unaudited)
Ratios of Outstanding Debt by Type
Last Ten Fiscal Years
Governmental Activities Business-type Activities
General Lease General General Total
Fiscal Obligation Revenue Obligation Obligation Primary Percentage of Per
Year Bonds Bonds Revenue Bonds Bonds Government Personal Income Capita
2012 $ 14,013,689 $ $ 4,121,748 $ 1,228,065 $ 19,363,502 6.97 % $ 2,705
2013 13,202,695 6,257,381 1,171,759 20,631,835 7.34 2,861
2014 12,807,462 5,855,190 1,242,391 19,905,043 6.75 2,747
2015 9,845,317 3,120,172 606,085 13,571,574 4.48 1,869
2016 8,876,782 2,635,154 536,019 12,047,955 3.73 1,647
2017 7,908,666 2,365,136 466,535 10,740,337 3.20 1,457
2018 6,911,370 2,090,118 395,229 9,396,717 2.66 1,268
2019 5,967,076 7,656,726 318,923 13,942,725 4.00 1,863
2020 5,104,343 7,064,673 242,617 12,411,633 3.20 1,651
2021 4,233,610 6,547,620 166,311 10,947,541 2.51 1,386
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 for personal income and population data.
147
City of Albertville, Minnesota Table 10
Statistical Section (Unaudited)
Ratios of General Bonded Debt Outstanding
Last Ten Fiscal Years
Less
Amounts Percentage of
General Available in Net Estimated Actual
Fiscal Obligation Debt Service Bonded Value of Per
Year Bonds Funds Debt Taxable Property Capita
2012 $ 15,241,754 $ 6,793,300 $ 8,448,454 1.60 % $ 1,180
2013 14,374,454 3,244,236 11,130,218 2.35 1,544
2014 14,049,853 3,970,721 10,079,132 1.81 1,391
2015 10,451,402 6,189,942 4,261,460 0.72 587
2016 9,412,801 2,942,019 6,470,782 0.92 884
2017 8,375,201 3,216,178 5,159,023 0.73 700
2018 7,306,599 3,133,185 4,173,414 0.59 563
2019 6,285,999 5,268,736 1,017,263 0.13 136
2020 5,346,960 4,979,787 367,173 0.05 49
2021 4,399,921 4,665,741 (265,820) (0.03) (34)
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 for population data.
See the Schedule of Tax Capacity, Market Value and Estimated Actual Value of Taxable Property for property value data.
148
City of Albertville, Minnesota Table 11
Statistical Section (Unaudited)
Computation of Direct and Overlapping Debt
December 31,2021
Gross Amount
Bonded of
Debt Used Percentage Net Debt
For Net Debt Applicable to Applicable
Calculation District to District
Direct Debt
City of Albertville $ 4,233,610 100.00 % $ 4,233,610
School District#885 148,115,000 23.79 35,236,559
School District#728 302,775,000 4.65 14,079,038
Wright County 140,385,000 4.91 6,892,904
Total Overlapping Debt 591,275,000 9.51 56,208,500
Total Direct and Overlapping Debt $595,508,610 10.15 % $ 60,442,110
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.
149
City of Albertville, Minnesota
Statistical Section (Unaudited)
Legal Debt Margin Information
Last Ten Fiscal Years
Fiscal Year
2012 2013 2014 2015
Debt Limit (1) $ 15,860,184 $ 14,227,200 $ 15,174,843 $ 16,444,410
Total Net Debt Applicable to Limit - - - -
Total $ 15,860,184 $ 14,227,200 $ 15,174,843 $ 16,444,410
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.
150
Table 12
Fiscal Year
2016 2017 2018 2019 2020 2021
$ 17,196,846 $ 19,864,659 $ 19,864,659 $ 21,413,454 $ 22,578,549 25,138,977
$ 17,196,846 $ 19,864,659 $ 19,864,659 $ 21,413,454 $ 22,578,549 $ 25,138,977
Legal Debt Margin Calculation for Fiscal Year 2020
Taxable Market Value $837,965,900
Debt Limit (3% of Market Value) $ 25,138,977
Debt Applicable to Limit
General Obligation Bonds (2) -
Less: Amount Available in
Debt Service Funds -
Total Net Debt Applicable to Limit -
Legal Debt Margin $ 25,138,977
151
City of Albertville, Minnesota Table 13
Statistical Section (Unaudited)
Pledged-Revenue Coverage
Last Ten Fiscal Years
General Obligation Revenue Bonds
(1) Net
Fiscal Gross (2) Revenue Debt Service
Year Revenue Expenses Available Principal Interest Coverage
2012 $ 733,830 $ 346,894 $ 386,936 $ 362,193 $ 161,360 0.74
2013 734,049 453,240 280,809 371,549 180,056 0.51
2014 771,239 439,487 331,752 394,373 171,371 0.59
2015 915,048 473,470 441,578 2,727,200 159,973 0.15
2016 836,374 464,576 371,798 477,200 49,281 0.71
2017 904,445 425,770 478,675 262,200 43,730 1.56
2018 948,167 439,181 508,986 265,900 41,124 1.66
2019 1,109,813 565,587 544,226 270,900 37,421 1.77
2020 1,016,245 627,732 388,513 575,900 148,695 0.54
2021 923,859 564,436 359,423 500,900 157,841 0.55
152
City of Albertville, Minnesota Table 14
Demographic and Economic Statistics
Last Ten Fiscal Years
Total Per Capita
Fiscal Number of Persons per Personal Personal Median School Unemployment
Year Population(1) Households(2) Household(2) Income(3) Income(4) Age(5) Enrollment(6) Rate(7)
2012 7,159 2,408 2.97 $277,747,723 $ 38,797 28.8 5,621 6.2 %
2013 7,211 2,422 2.98 281,229,000 39,000 34.6 5,725 5.2
2014 7,247 2,434 2.98 308,178,675 42,525 34.6 5,725 3.9
2015 7,262 2,411 3.01 321,866,364 44,322 34.6 5,900 2.8
2016 7,317 2,476 2.96 331,057,665 45,245 34.6 6,083 3.7
2017 7,370 2,480 2.97 335,335,000 45,500 34.6 6,300 3.5
2018 7,412 2,491 2.98 352,640,724 47,577 34.6 6,300 3.5
2019 7,485 2,516 2.97 348,748,605 46,593 34.6 6,300 3.2
2020 7,519 2,527 2.98 388,048,071 51,609 36.6 6,300 3.7
2021 7,896 2,654 2.98 436,001,328 55,218 36.6 6,300 3.8
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.
153
City of Albertville, Minnesota
Principal Employers
Current Year and Ten Years Ago
2021
Percentage
of Total City
Employer Employees Rank Employment
Outlets at Albertville 500 10.00 %
ISD No. 885,St. Michael-Albertville 949 18.98
Coborn's 198 3.96
Oldcastle Building Envelopes 150 3.00
HGP Industries - -
Guardian Angels-Engel Haus 65 1.30
Sherer Brothers Truss 48 0.96
Fraser Steel Co. 40 0.80
Fehn Gravel and Excavating, Inc. 80 1.60
Mold-Tech, Inc. 61 1.22
Don's Bus Service 50 1.00
D J's Total Home Care Center 20 0.40
Truss Manufacturing - -
Omann Brothers 20 0.40
Otsego Tool and Engineering, Inc. - -
Radiation Tool and Engineering, Inc. 15 0.30
Total 5,000 * 43.92 %
Source: Northland Securities
*This is an estimation provided by the City.
154
Table 15
2012
Percentage
of Total City
Employees Rank Employment
800 1 16.00 %
660 2 13.20
130 3 2.60
80 4 1.60
45 7 0.90
45 8 0.90
52 5 1.04
49 6 0.98
38 9 0.76
35 10 0.70
5,000 * 38.68 %
155
City of Albertville,Minnesota Table 16
Full-time Equivalent City Government Employees by Function
Last Ten Fiscal Years
Function 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021
General Government 5.0 6.5 6.3 6.3 6.3 6.3 6.7 6.7 6.7 6.7
Public Safety
Fire
Full Time Fire Chief - - - - 1.0 1.0 1.0 1.0 1.0 1.0
Civilians(1) 30.0 33.0 30.0 29.0 31.0 29.0 32.0 32.0 30.0 30.0
Public Works
Engineering 1.0 1.0 0.3 0.3 0.3 0.3 0.3 0.3 0.3 0.3
Maintenance 1.0 1.0 1.5 1.5 2.0 2.0 2.0 2.0 2.5 2.5
Culture and Recreation
Parks 1.0 1.0 1.5 1.5 2.0 2.0 2.0 2.0 2.5 2.5
Water 1.0 1.5 1.5 1.5 1.5 1.5 1.5 1.5 1.5 1.5
Sewer 1.0 1.5 1.5 1.5 1.5 1.5 1.5 1.5 1.5 1.5
Total 40.0 45.5 42.5 41.6 45.6 43.6 47.0 47.0 46.0 46.0
Source:City of Albertville
(1)The fire department is made up entirely of volunteer civilians.They are used on an on-call basis only.
156
City of Albertville,Minnesota Table 17
Operating Indicators By Function
Last Ten Fiscal Years
Function 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021
Fire
Fire Calls 278 217 229 254 256 276 366 418 414 569
Inspections 360 190 212 211 10 6 195 40 20 20
Building/Engineering
Permits Issued 394 391 412 453 542 477 468 494 696 837
Public Works
Street Sweeping(Hours) 77 82 74 80 123 115 67 98 100 100
Snowplowing(Hours) 320 330 791 723 387 210 364 610 412 260
Equipment Repair(Hours) 1,100 1,200 750 600 692 663 829 925 900 803
Water
New Connections 4 14 21 22 24 20 24 25 35 65
Water Mains Breaks - 2 2 6 3 3 3 2 2 2
Sewer
Average Daily Treatment Flow(Thousands of Gallons) 490,000 468,000 475,000 510,000 474,000 502,000 484,000 511,000 521,000 521,000
Sources:City of Albertville
Note:Indicators are not available for the general government function.
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City of Albertville,Minnesota Table 18
Capital Asset Statistics by Function
Last Ten Fiscal Years
Function 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021
Public Safety
Fire stations
Stations 1 1 1 1 1 1 1 1 1
Public Works
Highways and streets
Streets(miles) 36 36 36 38 38 38 39 39 39
Streetlights 417 417 417 417 417 417 417 430 430
Traffic signals 5 6 7 7 7 7 7 7 7
Culture and Recreation
Parks division
Parks 11 11 11 11 11 11 11 12 12
Parks acreage 120 125 125 125 125 125 125 131 131
Arena/Civic Center 1 1 1 1 1 1 1 1 1
Baseball diamonds 4 4 4 4 4 4 4 4 4
Basketball courts 5 5 5 5 5 5 5 5 5
Bike trails(miles) 5 5 5 5 5 5 5 5 5
Hockey rinks/outdoor 2 2 2 2 2 2 2 2 2
Softball diamonds 2 2 2 2 2 2 2 2 2
Tennis courts 5 5 5 5 5 5 5 5 5
Volleyball courts 1 1 1 1 1 1 1 1 1
Utilities
Water
Miles of water main 52 52 52 52 52 52 52 55 55
Consumers
Maximum daily capacity(gallons)
Sewer
Miles of sanitary sewer 37 37 37 37 37 37 37 39 39
Lift stations 10 10 10 10 10 10 10 10 10
Maximum daily treatment capacity(gallons) 929,000 929,000 929,000 929,000 929,000 929,000 929,000 929,000 929,000
Storm sewer
Miles of storm sewer 35 35 35 35 35 35 35 36 36
Source:City of Albertville
Note:No capital asset indicators are available for the general government function.
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