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2023 Annual Comprehensive Financial Report Annual Comprehensive Financial Report For the Year Ended December 31, 2023 City of Albertville, Minnesota THIS PAGE IS LEFT BLANK INTENTIONALLY 2 CITY OF ALBERTVILLE, MINNESOTA ANNUAL COMPREHENSIVE FINANCIAL REPORT FOR THE FISCAL YEAR ENDED DECEMBER 31, 2023 ADAM NAFSTAD - CITY ADMINISTRATOR TINA LANNES - FINANCE DIRECTOR PREPARED BY DEPARTMENT OF FINANCE Association of the United States and Canada 3 THIS PAGE IS LEFT BLANK INTENTIONALLY 4 City of Albertville, Minnesota Annual Comprehensive Financial Report Table of Contents For the Year Ended December 31, 2023 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 19 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 43 Statement of Revenues, Expenditures and Changes in Fund Balances 44 Reconciliation of the Statement of Revenues, Expenditures and Changes in Fund Balancesto the Statement of Activities 45 General Fund Statement of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual 47 Proprietary Funds Statement of Net Position 48 Statement of Revenues, Expenses and Changes in Net Position 51 Statement of Cash Flows 52 Fiduciary Funds Statement of Fiduciary Net Position 54 Statement of Changes in Fiduciary Net Position 55 Notes to the Financial Statements 57 Required Supplementary Information - General Employees Retirement Fund 90 - General Employees Retirement Fund 90 Notes to the Required Supplementary Information - General Employee Retirement Fund 91 - Public Employees Police and Fire Fund 93 - Public Employees Police and Fire Fund 93 Notes to the Required Supplementary Information - Public Employees Police and Fire Fund 94 Schedule of (Asset) and Related Ratios 96 97 5 City of Albertville, Minnesota Annual Comprehensive Financial Report Table of Contents (Continued) For the Year Ended December 31, 2023 Page No. Combining and Individual Fund Financial Statements and Schedules Nonmajor Governmental Funds Combining Balance Sheet 102 Combining Statement of Revenues, Expenditures and Changes in Fund Balances 103 Nonmajor Special Revenue Funds Combining Balance Sheet 106 Combining Statement of Revenues, Expenditures and Changes in Fund Balances 107 Nonmajor Capital Projects Funds Combining Balance Sheet 110 Combining Statement of Revenues, Expenditures and Changes in Fund Balances 112 Nonmajor Proprietary Funds Statement of Net Position 114 Statement of Revenues, Expenses and Changes in Net Position 117 Statement of Cash Flows 118 General Fund Schedule of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual 120 Debt Service Funds Combining Balance Sheet 124 Combining Schedule of Revenues, Expenditures and Changes in Fund Balances 126 Fiduciary Funds Combining Statement of Fiduciary Net Position 128 Combining Statement of Changes in Fiduciary Net Position 129 Summary Financial Report Revenues and Expenditures for General Operations - Governmental Funds 130 Table Page No. Statistical Section (Unaudited) Net Position by Component 1 134 Changes in Net Position 2 136 Fund Balances of Governmental Funds 3 140 Changes in Fund Balances of Governmental Funds 4 142 Tax Capacity, Market Value and Estimated Actual Value of Taxable Property 5 144 Property Tax Capacity Rates - Direct and Overlapping Governments 6 147 Principal Taxpayers 7 148 Property Tax Levies and Collections 8 150 Ratios of Outstanding Debt by Type 9 151 Ratios of General Bonded Debt Outstanding 10 152 Computation of Direct and Overlapping Debt 11 153 Legal Debt Margin Information 12 154 Pledged-Revenue Coverage 13 156 Demographic and Economic Statistics 14 157 Principal Employers 15 158 Full-time Equivalent City Government Employees by Function 16 161 Operating Indicators by Function 17 162 Capital Asset Statistics by Function 18 163 6 INTRODUCTORY SECTION CITY OF ALBERTVILLE ALBERTVILLE, MINNESOTA FOR THE YEAR ENDED DECEMBER 31, 2023 7 THIS PAGE IS LEFT BLANK INTENTIONALLY 8 April 16, 2024 Honorable Mayor, Members of the City Council and Citizens 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, 2023. 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. 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, 2023, are free of any material misstatements. Included within this report, Abdo. has issued an unqualified opinion on 3. 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 approximately 4.5 square miles. The current population is approximately 8,220. 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 9 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 oth Department for 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 begins annually in June when the Finance Director prepares projected revenues and expenses for the 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. General Fund and Capital Funds are appropriated annually based on the adopted budget. 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 Economic Condition and Outlook Based on permit activity, the local economy is strong and continues to grow. A total of 593 building permits were issued in 2023 with a total valuation of $27,145,418. The number of new housing units in 2023 was 3, with an average valuation of approximately $425,000 per home. The State of Minnesota continues its expansion of Interstate 94 through the City of Albertville. The City recently implemented a gas utility franchise fee. 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. Commercial, Industrial and Retail stimulate new commercial and industrial development. Currently, there are a number of commercial and industrial projects underway, including: Medart Inc Long Haul Trucking Everbrook Daycare -3384 10 Major Initiatives Maintenance and preservation of the City infrastructure and facilities is a priority for the City. In 2023, the City completed multiple infrastructure improvements related to streets, utilities, trails and parks. Other major initiatives include: The I-94 West Corridor Coalition 2023 Street Improvements WWTP Biosolids Dewatering Improvements Long-term Financial Planning The City of Albertville recognizes the importance of maintaining an appropriate level of fund balance. Sound 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 application to the current year budget) be allowed to be less 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 expenses, a replenishment plan will be developed. 2.Dependence 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. 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 conditions which cause them to believe that the financial statements are not fairly stated, in all material respects. -3384 11 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, 2022. This is the fourteenth 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 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, Adam Nafstad City Administrator/PWD/CE -3384 12 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, 2022 Executive Director/CEO 13 City of Albertville Organizational Chart Voters Consultants City Attorney City Council City Planner Committees Contract Services City Administrator/Public Works Sheriff's Department Director/City Engineer Family Youth Collaborative Assessor Joint Powers Water Economic Development Parks and Recreation Senior Program Public Works CommitteePersonnel CommitteeBoardPlanning CommissionAuthorityCommitteeSTMA Arena Board Admin. Asst. Clerk II Building - Planning and City ClerkFinance DirectorSTMA Ice ArenaFire Department (Building Tech)ZoningSewer Utility DeptStreets and Parks Election JudgesFinance StaffFire Chief Utility EmployeesParks Employees Fire Officers Volunteer Firemen 14 City of Albertville, Minnesota Elected and Appointed Officials For the Year Ended December 31, 2023 15 THIS PAGE IS LEFT BLANK INTENTIONALLY 16 FINANCIAL SECTION CITY OF ALBERTVILLE ALBERTVILLE, MINNESOTA FOR THE YEAR ENDED DECEMBER 31, 2023 17 THIS PAGE IS LEFT BLANK INTENTIONALLY 18 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 December31, 2023 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, 2023, 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 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 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 Ccontinue as a going concern for twelve months beyond the financial statement date, including any currently known information that may raise substantial doubt shortly thereafter. 19 Financial Statements Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from 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 ly, 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 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 Analysis starting on page 23and the SchedulesSchedulesof the related note disclosures, the Schedule of Changes in Net Pension Liability (Asset) and Related Ratios starting on page 92be 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 comparingthe information for consistency 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. 20 Supplementary Information Our audit was conducted for the purpose of forming opinion on the financial statements that collectively comprise the are presented for purposes of additional analysis and are not a required part of the basic financial statements. Such information is the responsibility of management and was derived from and related directly to the underlying accounting and other records used to prepare the basic financial statements. The 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 ouropinion, 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. Other Information Management is responsible for the other information in the annual report. The other information comprises the thereon. Our opinions onthe basic financial statement do not cover the other information, and we do not express an opinion or any form of assurance thereon. In connection with our audit of the basic financial statements, our responsibility is to read the other information and consider whether a material inconsistency exists between the other information and the basic financial statements,or the other information otherwise appears to be materially misstated. If, based on the work performed, we conclude that an uncorrected material misstatement of the other information exists, we are required to describe it in our report. Other Reporting Required by Government Auditing Standards In accordance with Government Auditing Standards, we have also issued our report dated April 16, 2024, on our provisions of laws, regulations, contracts, and grantagreements and other matters. The purpose of that report issolely to describe the scope of our testing of internal control over financial reporting and compliance and the results of that testing, and not to provide an opinion on the 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 Abdo Minneapolis, Minnesota April 16, 2024 21 THIS PAGE IS LEFT BLANK INTENTIONALLY 22 As management of the City of Albertville narrative overview and analysis of the financial activities of the City for the fiscal year ended December 31, 2023. 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 as shown in the summary of net position on the following pages. The unrestricted amount of net position and creditors. increased as shown in the summary of changes in net position table on the following pages. This increase is attributable to program revenues exceeding expenses during the year. For the current fiscal year, the City's governmental funds fund balances are shown in the Financial Analysis of the City's Funds section of the MD&A. unds section increased from the prior year due to revenues in excess of budget. increased during the current fiscal year. The increase was due to the issuance of series 2023Ageneral obligation disposal system bonds to fund wastewater treatment facility as shown on the outstanding debt table. 23 Overview of the Financial Statements financial statements. 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 Management's Basic Required Discussion and Financial Supplementary Analysis StatementsInformation Government-FundNotes to the wide Financial FinancialFinancial StatementsStatementsStatements SummarDetail ` 24 including the portion of the City government they cover and the types of information they contain. 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 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 Position Statement of Revenues, 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 Hpwfsonfou.xjef!gjobodjbm!tubufnfout are designed to provide readers with -sector business. The tubufnfou!pg!ofu!qptjujpo presents informatand liabilitiesand deferred inflows of resources, with the difference reported as ofu!qptjujpo. Over time, 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 tubufnfou!pg!bdujwjujft 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, sfhbsemftt!pg!uif!ujnjoh!pg!sfmbufe!dbti!gmpxt. 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). ` 25 Both of the government-wide financial statements distinguish functions of the City that are principally supported by taxes and intergovernmental revenue (hpwfsonfoubm!bdujwjujft) from other functions that are intended to recover all or a significant portion of their costs through user fees and charges (cvtjoftt.uzqf!bdujwjujft). 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 gvoe 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. Hpwfsonfoubm!Gvoet. Hpwfsonfoubm!gvoet are used to account for essentially the same functions reported as hpwfsonfoubm!bdujwjujft in the government-wide financial statements. However, unlike the government-wide financial statements, governmental fund financial statements focus on ofbs.ufsn!jogmpxt!boe!pvugmpxt!pg!tqfoebcmf!sftpvsdft, as well as on cbmbodft!pg!tqfoebcmf!sftpvsdft available at the end of the fiscal year. Such information may be useful in -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 hpwfsonfoubm!gvoet with similar information presented for hpwfsonfoubm! bdujwjujft in the government-wide financial statements. By doing so, readers may better understand the long-term impact 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 hpwfsonfoubm!gvoet and hpwfsonfoubm!bdujwjujft. The City maintains several 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, and Capital Outlay Reserve funds - 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 dpncjojoh!tubufnfout!ps!tdifevmft 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. Qspqsjfubsz!Gvoet. The City maintains one type of proprietary fund/!Foufsqsjtf!gvoet are used to report the same functions presented as cvtjoftt.uzqf!bdujwjujft 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 of this report. Gjevdjbsz!Gvoet. Fiduciary funds are used to account for resources held for the benefit of parties outside the City. Fiduciary funds are opu reflected in the government-wide financial statements because the resources of those funds are not available to suThe accounting used for fiduciary funds is much like that used for proprietary funds. The basic fiduciary fund financial statements are on page 5 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 5 of this report. ` 26 Supplementary Information. In addition to the basic financial statements and accompanying notes, this report also pension and other post-employment benefits to its employees. Required supplementary information can be found starting on page 90of this report. 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 102 of this report. Government-wide Financial Analysis As noted earlier, net position may serve over time as a useful indicator of a goIn the case of the City, assets and deferred outflows of resources exceeded liabilities the close of the most recent fiscal year. net position 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. 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 AlbertvilleSummary of Net Position Governmental ActivitiesBusiness-type Activities IncreaseIncrease 20232022(Decrease)20232022(Decrease) Current and Other Assets$ 16,484,333$ 16,312,131$ 172,202$ 19,879,502$ 13,694,727$ 6,184,775 Capital Assets 22,766,923 23,058,393 (291,470) 23,756,332 17,295,499 6,460,833 Total Assets 39,251,256 39,370,524 (119,268) 43,635,834 30,990,226 12,645,608 Deferred Outflows of Resources 787,411 8 10,043 (22,632) 103,186 160,116 (56,930) Long-term Liabilities Outstanding 3,499,110 4,812,529 (1,313,419) 15,716,544 6,694,167 9,022,377 Other Liabilities 794,789 1,347,833 (553,044) 829,188 282,747 546,441 Total Liabilities 4,293,899 6,160,362 (1,866,463) 16,545,732 6,976,914 9,568,818 Deferred Inflows of Resources 551,802 109,655 442,147 118,766 4,788 113,978 Net Position Net investment in capital assets 20,273,389 19,783,680 489,709 11,419,846 11,189,927 229,919 Restricted 5,714,233 5,667,95046,283 - - - Unrestricted 9,205,344 8,458,920 746,424 15,654,676 12,978,713 2,675,963 Total Net Position$ 35,192,966$ 33,910,550$ 1,282,416$ 27,074,522$ 24,168,640$ 2,905,882 Net Position as a Percent of Total Net investment in capital assets 57.6% 58.4% 42.2% 46.3% Restricted 16.2 16.7 - - Unrestricted 26.2 24.9 57.8 53.7 100.0% 100.0% 100.0% 100.0% ` 27 net position represents resources that are subject to external restrictions on how they may be used. The remaining balance of vosftusjdufe!ofu!qptjujpo 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. Governmental Activities. Governmental activities increased net position. Significant changes from the prior year are noted below with a significant reason for the increase related to taxes and unrestricted investment earnings. Business- water treatment facility. City of AlbertvilleChanges in Net Position Governmental ActivitiesBusiness-type Activities IncreaseIncrease 20232022(Decrease)20232022(Decrease) Revenues Program Revenues Charges for services$ 1,258,084$ 1,979,509$ (721,425)$ 1,994,092$ 1,940,742$ 53,350 Operating grants and contributions 1,071,298 380,209 691,089 18,581 19,637 (1,056) Capital grants and contributions 11,930 1,606,812 (1,594,882) 2,426,134 1,818,198 607,936 General Revenues Taxes Property taxes 4,507,776 4,326,785 180,991 220,624 222,934 (2,310) Tax increments 462,983 197,675 265,308 - - - Franchise fees 325,250 - 325,250 - - - Grants and contributions not restricted to specific programs 305,373 115,422 189,951 111,961 58,468 53,493 Gain on sale of capital assets 30,000 - 30,000 - - - Unrestricted investment earnings (loss) 564,901 (320,982) 885,883 808,086 (353,201) 1,161,287 Total Revenues 8,537,595 8,285,430 252,165 5,579,478 3,706,778 1,872,700 Expenses General government 1,257,890 1,273,530 (15,640) - - - Public safety 2,242,841 1,989,621 253,220 - - - Public works 2,245,612 1,598,677 646,935 - - - Culture and recreation 1,147,360 988,150 159,210 - - - Economic development 265,896 1,354,800 (1,088,904) - - - Interest on long-term debt 95,580 112,596 (17,016) - - - Sewer - - - 1,692,252 1,348,974 343,278 Water - - - 526,850 465,093 61,757 Storm water - - - 297,395 265,392 32,003 Recycling - - - 157,099 145,939 11,160 Total Expenses 7,255,179 7,317,374 (62,195) 2,673,596 2,225,398 448,198 Change in Net Position 1,282,416 968,056 - 2,905,882 1,481,380 - Net Position, January 1 33,910,550 32,942,494 968,056 24,168,640 22,687,260 1,481,380 Net Position, December 31$ 35,192,966$ 33,910,550$ 1,282,416$ 27,074,522$ 24,168,640$ 2,905,882 ` 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 Revenuesby Source -Governmental Activities For the most part, increases in expenses closely paralleled inflation and growth in the demand for services. 14.7%, Charges for 12.5%, Operating 6.6% Services Grants and Unrestricted Contributions Investment 0.4%, Miscellaneous 3.6%, Grants and Contributions 0.1%, Capital Grants Unrestricted and Contributions 62.0%, Taxes ` 29 Business-type Activities. Business-type activities increasednet positionmainly due to capitalgrants and contributionsrelated to development activity. Expenses and Program Revenues-Business-type Activities Revenues by Source -Business-type Activities 0.3%, Operating Grants and Contributions, 35.7%, Charges for Services 43.5%, Capital Grants and Contributions 14.5%, Investment Earnings (Loss) 2.0%, Grants and 4.0%, Taxes Contributions Unrestricted ` 30 As noted earlier, the City uses fund accounting to ensure and demonstrate compliance with finance-related legal requirements. Hpwfsonfoubm!Gvoet: hpwfsonfoubm!gvoet is to provide information on near-term inflows, outflows and balances of tqfoebcmf resources. Such information is useful in assessing the In particular, vobttjhofe!gvoe!cbmbodf spending at the end of the fiscal year. The Hfofsbm!gvoe is the chief operating fund of the City. At the end of the current year, the fund balance of the General fund is shown in the table above. fund balance to total fund expenditures. The total unassigned fund balance as a percent of total fund expenditures is shown in the chart below along with total fund balance as a percent of total expenditures. The increase is mainly due to interest earnings increasing related to the improvement in the market as well as increased franchise fees. Other major governmental fund analysis is shown below: December 31,December 31,Increase 20232022(Decrease) Debt Service Fund$ 2,783,933$ 3,047,697$ (263,764) Uif!Efcu!Tfswjdf!gvoe!efdsfbtf!jo!gvoe!cbmbodf!evsjoh!uif!zfbs!xbt!evf!up!tdifevmfe qsjodjqbm!boe!joufsftu!qbznfout!nbef!po!cpoet!evsjoh!uif!zfbs/ Capital Outlay Reserve$ 6,547,132$ 6,062,374$ 484,758 Uif!Dbqjubm!Pvumbz!Sftfswf!gvoe!jodsfbtfe!nbjomz!evf!up!sfwfovf!bmmpdbujpot!gps!gvuvsf!qspkfdut/ ` 31 Qspqsjfubsz!Gvoet; -wide financial statements, but in more detail. EndingEnding Net PositionNet PositionIncrease/ 20232022(Decrease) Sewer$ 21,463,137$ 18,733,854$ 2,729,283 Uif!jodsfbtf!jt!qsjnbsjmz!buusjcvufe!up!uif!dbqjubm!dpousjcvujpot!evsjoh!uif!zfbs/ Water 3,261,663 3,088,449 173,214 Uif!jodsfbtf!jt!qsjnbsjmz!buusjcvufe!up!joufsftu!fbsojoht-!joufshpwfsnfoubm!sfwfovf!boe !dbqjubm!dpousjcvujpot/ General Fund Budgetary Highlights Final BudgetedActualVariance with AmountsAmountsFinal Budget Revenues$ 3,893,184$ 4,598,309$ 705,125 Expenditures 4,013,430 4,458,573 (445,143) Net Change in Fund Balances (120,246) 139,736 259,982 Fund Balances, January 1 2,592,935 2,592,935 - Fund Balances, December 31$ 2,472,689$ 2,732,671$ 259,982 Actual revenues were over the final budget and expenditures were also over the final budget amounts as shown above. Revenues came in above the final budget due to large favorable variances from budget related to charges for services and investment earnings. Expenditures also came in over the final budget due to unfavorable variances from budget related to general government, public safety, and culture and recreation expenditures. ` 32 Capital Asset and Debt Administration Capital Assets: -type activities as of December 31, 2023, is shown below in capital asset table (net of accumulated depreciation). This investment in capital assets includes land, structures, improvements, machinery and equipment, vehicles, roads, highways and bridges. The mental and business-type activities is due to: 2022 Albertville Street Improvements 2023 Albertville Street Improvements 2023 Loader and Plow Barthel Industrial Drive Improvements B starting on page of this report. City of AlbertvilleCapital Assets (Net of Depreciation) Long-term Debt: At the end of the current fiscal year, the City had total bonded debt outstanding indicated below. This amount consists of general obligation special assessment, general obligation revenue bonds and revenue bonds. While many of thesebonds have their own revenue streams, they are backed by the full faith and credit of the City. City of AlbertvilleOutstanding Debt Governmental ActivitiesBusiness-type Activities IncreaseIncrease 20232022(Decrease)20232022(Decrease) General Obligation Special Assessment Bonds$ 2,532,092$ 3,351,510$ (819,418)$ - $ 85,005 $ (85,005) G.O. Revenue Bonds - - - 15,263,991 6,020,567 9,243,424 Total$ 2,532,092$ 3,351,510$ (819,418)$ 15,263,991$ 6,105,572$ 9,158,419 Percent increase (decrease)-24.4%150.0% increased during the current fiscal year. This increase is attributable to issuance of series 2023A general obligation bond to fund the wastewater treatment facility. ` 33 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 exceed the limit set forth in statute. -term debt can be found in Note 3D starting on page 7 of this report. Residential property values continue to show stable growth and home improvement activity remains strong. New housing starts will be limited as there is limited land zoned for new housing. Commercial property values have increased and commercial interest is strong. The interstate highway, proximity to growth. Budgeted contract services are reviewed and adjusted annually. 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 terest in the 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. ` 34 GOVERNMENT-WIDE FINANCIAL STATEMENTS CITY OF ALBERTVILLE ALBERTVILLE, MINNESOTA FOR THE YEAR ENDED DECEMBER 31, 2023 35 THIS PAGE IS LEFT BLANK INTENTIONALLY 36 City of Albertville, Minnesota Statement of Net Position December 31, 2023 GovernmentalBusiness-type ActivitiesActivitiesTotal Assets Cash and temporary investments$ 12,385,240 $ 19,024,222 $ 31,409,462 Receivables Interest 102,835 - 102,835 Taxes 45,729 - 45,729 Accounts 54,846 196,050 250,896 Notes - due within one year 73,148 - 73,148 Notes - due in more than one year 1,035,188 - 1,035,188 Less allowance for uncollectible (450,000) - (450,000) Special assessments 501,379 82,052 583,431 Internal balances (73,000) 73,000 - Due from other governments 1,543,708 469,738 2,013,446 Prepaid items 136,926 34,440 171,366 Equity interest in joint venture 250,447 - 250,447 Net pension asset 225,934 - 225,934 Land held for resale 651,953 - 651,953 Capital assets Land and construction in progress 5,197,065 7,490,234 12,687,299 Depreciable assets, net of accumulated depreciation 17,569,858 16,266,098 33,835,956 Total Assets 39,251,256 43,635,834 82,887,090 Deferred Outflows of Resources Loss on refunding bonds 38,558 - 38,558 Deferred pension resources 748,853 103,186 852,039 Total Deferred Outflows of Resources 787,411 103,186 890,597 Liabilities Accounts and contracts payable 277,135 490,267 767,402 Escrows payable 98,242 - 98,242 Due to other governments 16,411 49,030 65,441 Accrued interest payable 13,011 265,465 278,476 Accrued salaries payable 44,002 24,426 68,428 Unearned revenue 345,988 - 345,988 Noncurrent liabilities Due within one year Long-term liabilities 655,241 605,320 1,260,561 Due in more than one year Long-term liabilities 1,975,839 14,732,431 16,708,270 Net pension liability 868,030 378,793 1,246,823 Total Liabilities 4,293,899 16,545,732 20,839,631 Deferred Inflows of Resources Deferred pension resources 551,802 118,766 670,568 Net Position Net investment in capital assets 20,273,389 11,419,846 31,693,235 Restricted for Net pension asset 225,934 - 225,934 Debt service 3,875,489 - 3,875,489 Park dedication 969,612 - 969,612 Tax increment 293,203 - 293,203 Public safety aid 349,995 - 349,995 Unrestricted 9,205,344 15,654,676 24,860,020 Total Net Position$ 35,192,966 $ 27,074,522 $ 62,267,488 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, 2023 Program Revenues OperatingCapital Grants Charges forGrants andand Functions/Programs ExpensesServicesContributionsContributions Governmental Activities General government$ 1,257,890 $ 380,077 $ 104,279 $ 9,480 Public safety 2,242,841 521,278 530,558 - Public works 2,245,612 1,450 407,506 2,450 Culture and recreation 1,147,360 355,279 18,086 - Economic development 265,896 - 10,869 - Interest on long-term debt 95,580 - - - Total Governmental Activities 7,255,179 1,258,084 1,071,298 11,930 Business-type Activities Sewer 1,692,252 1,106,098 9,869 2,389,744 Water 526,850 496,765 - 36,390 Storm water 297,395 249,451 - - Recycling 157,099 141,778 8,712 - Total Business-type Activities 2,673,596 1,994,092 18,581 2,426,134 Total$ 9,928,775 $ 3,252,176 $ 1,089,879 $ 2,438,064 General Revenues Taxes Property taxes levied for general purposes Property taxes levied for debt service Tax increments Franchise fees Grants and contributions not restricted to specific programs Unrestricted investment earnings Gain on sale of capital assets Total General Revenues Change in Net Position Net Position, January 1 Net Position, December 31 The notes to the financial statements are an integral part of this statement. 38 Net (Expenses) Revenues and Changes in Net Position GovernmentalBusiness-type ActivitiesActivitiesTotal $ (764,054)$ -$ (764,054) (1,191,005) - (1,191,005) (1,834,206) - (1,834,206) (773,995) - (773,995) (255,027) - (255,027) (95,580) - (95,580) (4,913,867) - (4,913,867) - 1,813,459 1,813,459 - 6,305 6,305 - (47,944) (47,944) - (6,609) (6,609) - 1,765,211 1,765,211 (4,913,867) 1,765,211 (3,148,656) 4,143,704 220,624 4,364,328 364,072 - 364,072 462,983 - 462,983 325,250 - 325,250 305,373 111,961 417,334 564,901 808,086 1,372,987 30,000 - 30,000 6,196,283 1,140,671 7,336,954 1,282,416 2,905,882 4,188,298 33,910,550 24,168,640 58,079,190 $ 35,192,966$ 27,074,522$ 62,267,488 The notes to the financial statements are an integral part of this statement. 39 THIS PAGE IS LEFT BLANK INTENTIONALLY 40 FUND FINANCIAL STATEMENTS CITY OF ALBERTVILLE ALBERTVILLE, MINNESOTA FOR THE YEAR ENDED DECEMBER 31, 2023 41 City of Albertville, Minnesota Balance Sheet Governmental Funds December 31, 2023 CapitalOtherTotal DebtOutlayGovernmentalGovernmental GeneralServiceReserveFundsFunds Assets Cash and temporary investments$ 2,571,022$ 1,296,675$ 6,748,106$ 1,769,437$ 12,385,240 Receivables Taxes 45,729 - - - 45,729 Accounts 54,846 - - - 54,846 Special assessments 39,190 446,231 15,958 - 501,379 Interest 99,324 3,511 - - 102,835 Notes - 658,336 - 450,000 1,108,336 Less allowance for uncollectible - - - (450,000) (450,000) Advances to other funds 25,000 882,794 19,588 - 927,382 Due from other governments - - 1,543,708 - 1,543,708 Prepaid items 126,926 - 10,000 - 136,926 Land held for resale 51,000 600,953 - - 651,953 Total Assets$ 3,013,037$ 3,888,500$ 8,337,360$ 1,769,437$ 17,008,334 Liabilities Accounts and contracts payable$ 46,453$ -$ 230,562 $ 120$ 277,135 Escrows payable 98,242 - - - 98,242 Advances from other funds - - - 1,000,382 1,000,382 Due to other governments 16,411 - - - 16,411 Accrued salaries payable 44,002 - - - 44,002 Unearned revenue - - - 345,988 345,988 Total Liabilities 205,108 - 230,562 1,346,490 1,782,160 Deferred Inflows of Resources Unavailable revenue - property taxes 36,694 - - - 36,694 Unavailable revenue - special assessments 38,564 446,231 15,958 - 500,753 Unavailable revenue - notes/intergovernmental - 658,336 1,543,708 - 2,202,044 Total Deferred Inflows of Resources 75,258 1,104,567 1,559,666 - 2,739,491 Fund Balances Nonspendable 177,926 - 10,000 - 187,926 Restricted - 2,783,933 349,995 1,262,815 4,396,743 Committed - - - 159,322 159,322 Assigned - - 6,187,137 - 6,187,137 Unassigned 2,554,745 - - (999,190) 1,555,555 Total Fund Balances 2,732,671 2,783,933 6,547,132 422,947 12,486,683 Total Liabilities, Deferred Inflows of Resources and Fund Balances$ 3,013,037$ 3,888,500$ 8,337,360$ 1,769,437$ 17,008,334 The notes to the financial statements are an integral part of this statement. 42 City of Albertville, Minnesota Reconciliation of the Balance Sheet to the Statement of Net Position December 31, 2023 Amounts reported for the governmental activities in the statement of net position are different because Total Fund Balances - Governmental$ 12,486,683 Governmental funds do not report an asset for equity interest in the joint venture 250,447 Capital assets used in governmental activities are not financial resources and therefore are not reported as assets in governmental funds. Cost of capital assets 53,566,495 Less: accumulated depreciation (30,799,572) 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 (98,988) Bond principal payable (2,532,092) Net pension liability (868,030) Deferred outflows of resources, loss on refunding bond38,558 Some receivables are not available soon enough to pay for the current period's expenditures, and therefore are deferred in the funds. Special assessments 500,753 Taxes 36,694 Notes/intergovernmental 2,202,044 Governmental funds do not report long-term amounts related to pension. Deferred outflows of pension resources 748,853 Deferred inflows of pension resources (551,802) Net pension asset 225,934 Governmental funds do not report a liability for accrued interest until due and payable. (13,011) Total Net Position - Governmental Activities$ 35,192,966 The notes to the financial statements are an integral part of this statement. 43 City of Albertville, Minnesota Statement of Revenues, Expenditures and Changes in Fund Balances Governmental Funds For the Year Ended December 31, 2023 CapitalOtherTotal DebtOutlayGovernmentalGovernmental GeneralServiceReserveFundsFunds Revenues Taxes$ 2,798,923$ 417,072$ 1,601,861$ 462,983$ 5,280,839 Licenses and permits 267,566 - - - 267,566 Intergovernmental 249,052 - 605,719 575 855,346 Charges for services 969,605 - - 32,000 1,001,605 Fines and forfeitures 14,812 - - - 14,812 Special assessments 80,394 50,313 21,199 - 151,906 Investment earnings 151,130 68,576 287,716 57,479 564,901 Miscellaneous 66,827 77,440 4,810 - 149,077 Total Revenues 4,598,309 613,401 2,521,305 553,037 8,286,052 Expenditures Current General government 1,021,530 - - - 1,021,530 Public safety 2,040,819 - - - 2,040,819 Public works 589,751 7,526 - - 597,277 Culture and recreation 802,971 - - - 802,971 Economic development 3,502 - - 262,394 265,896 Capital outlay General government - - 214,872 - 214,872 Public safety - - 87,388 - 87,388 Public works - - 1,529,614 - 1,529,614 Culture and recreation - - 204,673 - 204,673 Debt service Principal - 813,000 - - 813,000 Interest and other - 56,639 - 12,264 68,903 Total Expenditures 4,458,573 877,165 2,036,547 274,658 7,646,943 Net Change in Fund Balances 139,736 (263,764) 484,758 278,379 639,109 Fund Balances, January 1 2,592,935 3,047,697 6,062,374 144,568 11,847,574 Fund Balances, December 31$ 2,732,671$ 2,783,933$ 6,547,132$ 422,947$ 12,486,683 The notes to the financial statements are an integral part of this statement. 44 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, 2023 Amounts reported for governmental activities in the statement of activities are different because Total Change Is Fund Balances$ 639,109 Governmental funds do not report income or loss in a joint venture. 23,643 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 1,482,945 Depreciation expense (1,804,415) Gain on trade in of capital assets 30,000 The issuance of long-term debt provides current financial resources to governmental funds, while the repayment of principal of long-term debt consumes the current financial resources of governmental funds. Neither transaction, however, has any effect on net position. Also, governmental funds report the effect of premiums, discounts and similar items when debt is first issued, whereas these amounts are amortized in the statement of activities. Principal repayments 813,000 Amortization of loss on refunding and premium (31,821) 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. 5,144 Long-term pension activity is not reported in governmental funds. Pension expense (63,924) Pension revenue 611 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 (9,165) 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 (129,107) Taxes 15,170 Intergovernmental 311,226 Change in Net Position - Governmental Activities$ 1,282,416 The notes to the financial statements are an integral part of this statement. 45 THIS PAGE IS LEFT BLANK INTENTIONALLY 46 City of Albertville, Minnesota Statement of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual General Fund For the Year Ended December 31, 2023 General Budgeted Amounts ActualVariance with OriginalFinalAmountsFinal Budget Revenues Taxes$ 2,707,337 $ 2,707,337 $ 2,798,923 $ 91,586 Licenses and permits 263,000 263,000 267,566 4,566 Intergovernmental 207,091 207,091 249,052 41,961 Charges for services 690,756 690,756 969,605 278,849 Fines and forfeitures - - 14,812 14,812 Special assessments - - 80,394 80,394 Investment earnings 10,000 10,000 151,130 141,130 Miscellaneous 15,000 15,000 66,827 51,827 Total Revenues 3,893,184 3,893,184 4,598,309 705,125 Expenditures Current General government 962,263 962,263 1,021,530 (59,267) Public safety 1,977,031 1,977,031 2,040,819 (63,788) Public works 524,899 524,899 589,751 (64,852) Culture and recreation 524,237 524,237 802,971 (278,734) Economic development 25,000 25,000 3,502 21,498 Total Expenditures 4,013,430 4,013,430 4,458,573 (445,143) Net Change in Fund Balances (120,246) (120,246) 139,736 259,982 Fund Balances, January 1 2,592,935 2,592,935 2,592,935 - Fund Balances, December 31$ 2,472,689 $ 2,472,689 $ 2,732,671 $ 259,982 The notes to the financial statements are an integral part of this statement. 47 City of Albertville, Minnesota Statement of Net Position Proprietary Funds December 31, 2023 Business-type Activities - Enterprise Funds SewerWaterNonmajorTotal Assets Current Assets Cash and temporary investments$ 15,285,729$ 2,579,027$ 1,159,466$ 19,024,222 Receivables Accounts 88,154 83,731 24,165 196,050 Delinquent special assessments 1,635 2,273 666 4,574 Special assessments, current portion 8,298 7,395 2,880 18,573 Due from other governments 467,738 - 2,000 469,738 Prepaid items 24,630 7,538 2,272 34,440 Total Current Assets 15,876,184 2,679,964 1,191,449 19,747,597 Noncurrent Assets Special assessments, net of current portion 46,758 10,465 1,682 58,905 Advances to other funds 22,500 14,500 36,000 73,000 69,258 24,965 37,682 131,905 Capital Assets Land 205,722 - 146,112 351,834 Buildings 4,706,359 13,330 - 4,719,689 Infrastructure 16,976,386 1,401,010 1,509,297 19,886,693 Machinery and equipment 218,515 174,081 - 392,596 Vehicles 237,686 216,921 69,177 523,784 Construction in progress 7,138,400 - - 7,138,400 Less: Accumulated depreciation (7,860,927) (899,853) (495,884) (9,256,664) Net Capital Assets 21,622,141 905,489 1,228,702 23,756,332 Total Noncurrent Assets 21,691,399 930,454 1,266,384 23,888,237 Total Assets 37,567,583 3,610,418 2,457,833 43,635,834 Deferred Outflows of Resources Deferred pension resources 50,078 28,382 24,726 103,186 The notes to the financial statements are an integral part of this statement. 48 City of Albertville, Minnesota Statement of Net Position (Continued) Proprietary Funds December 31, 2023 Business-type Activities - Enterprise Funds SewerWaterNonmajorTotal Liabilities Current Liabilities Accounts and contracts payable$ 445,089$ 44,738$ 440$ 490,267 Due to other governments - 49,030 - 49,030 Accrued interest payable 264,984 481 - 265,465 Accrued salaries payable 7,305 10,981 6,140 24,426 Compensated absences payable, current portion 24,894 24,894 5,532 55,320 Bonds payable, current portion 539,600 10,400 - 550,000 Total Current Liabilities 1,281,872 140,524 12,112 1,434,508 Noncurrent Liabilities Compensated absences payable 8,298 8,298 1,844 18,440 Bonds payable 14,693,191 20,800 - 14,713,991 Net pension liability 104,383 183,405 91,005 378,793 Total Noncurrent Liabilities 14,805,872 212,503 92,849 15,111,224 Total Liabilities 16,087,744 353,027 104,961 16,545,732 Deferred Inflows of Resources Deferred pension resources 66,780 24,110 27,876 118,766 Net Position Net investment in capital assets 9,316,855 874,289 1,228,702 11,419,846 Unrestricted 12,146,282 2,387,374 1,121,020 15,654,676 Total Net Position$ 21,463,137$ 3,261,663$ 2,349,722$ 27,074,522 The notes to the financial statements are an integral part of this statement. 49 THIS PAGE IS LEFT BLANK INTENTIONALLY 50 City of Albertville, Minnesota Statement of Revenues, Expenses and Changes in Net Position Proprietary Funds For the Year Ended December 31, 2023 Business-type Activities - Enterprise Funds SewerWaterNonmajorTotal Operating Revenues Charges for services$ 1,088,083 $ 479,410 $ 391,219 $ 1,958,712 Operating Expenses Personal services 383,901 290,573 207,183 881,657 Supplies 37,06536,753 - 73,818 Professional services 56,675 18,141 55,968 130,784 Utilities 121,822 507 - 122,329 Insurance 16,663 8,414 1,645 26,722 Repairs and maintenance 16,636 72,710 3,992 93,338 Depreciation 524,492 41,353 37,139 602,984 Other charges 49,565 57,215 148,430 255,210 Total Operating Expenses 1,206,819 525,666 454,357 2,186,842 Operating Income (Loss) (118,736) (46,256) (63,138) (228,130) Nonoperating Revenues (Expenses) Property taxes 220,624 - - 220,624 Interest income 634,572 115,576 57,938 808,086 Intergovernmental 60,62851,3338,712 120,673 Interest expense and other (485,433) (1,184) (137) (486,754) Other income 27,884 17,355 10 45,249 Total Nonoperating Revenues (Expenses) 458,275 183,080 66,523 707,878 Income (Loss) Before Contributions 339,539 136,824 3,385 479,748 Contributions Capital contributions 2,389,744 36,390 - 2,426,134 Change in Net Position 2,729,283 173,214 3,385 2,905,882 Net Position, January 1 18,733,854 3,088,449 2,346,337 24,168,640 Net Position, December 31$ 21,463,137 $ 3,261,663 $ 2,349,722 $ 27,074,522 The notes to the financial statements are an integral part of this statement. 51 City of Albertville, Minnesota Statement of Cash Flows Proprietary Funds For the Year Ended December 31, 2023 Business-type Activities - Enterprise Funds SewerWaterNonmajorTotals Cash Flows from Operating Activities Receipts from customers and users$ 1,094,603$ 488,196$ 393,343$ 1,976,142 Other receipts and payments, net 27,884 17,355 10 45,249 Payments to suppliers (285,678) (208,593) (221,457) (715,728) Payments to employees (372,421) (273,175) (198,859) (844,455) Net Cash Provided by Operating Activities 464,388 23,783 (26,963) 461,208 Cash Flows from Noncapital Financing Activities Intergovernmental receipts 60,628 51,333 8,712 120,673 Tax receipts 220,624 - - 220,624 Net Cash Provided by Noncapital Financing Activities 281,252 51,333 8,712 341,297 Cash Flows from Capital and Related Financing Activities Acquisition of capital assets (6,700,265) (31,200) - (6,731,465) Capital contributions 1,939,610 34,567 - 1,974,177 Debt issuance proceeds 9,798,446 - - 9,798,446 Debt issuance costs (155,540) - - (155,540) Interest paid on bonds (131,013) (1,331) (850) (133,194) Principal paid on bonds (529,600) (10,400) (85,000) (625,000) Net Cash Provided (Used) by Capital and Related Financing Activities 4,221,638 (8,364) (85,850) 4,127,424 Cash Flows from Investing Activities Interest received on investments 634,572 115,576 57,938 808,086 Net Increase (Decrease) in Cash and Cash Equivalents 5,601,850 182,328 (46,163) 5,738,015 - Cash and Cash Equivalents, January 1 9,683,879 2,396,699 1,205,629 13,286,207 Cash and Cash Equivalents, December 31$ 15,285,729$ 2,579,027$ 1,159,466$ 19,024,222 The notes to the financial statements are an integral part of this statement. 52 City of Albertville, Minnesota Statement of Cash Flows (Continued) Proprietary Funds For the Year Ended December 31, 2023 Business-type Activities - Enterprise Funds SewerWaterNonmajorTotals Reconciliation of Operating Income (Loss) to Net Cash Provided by Operating Activities Operating income (loss)$ (118,736)$ (46,256)$ (63,138)$ (228,130) Adjustments to reconcile operating income (loss) to net cash provided by operating activities Other income related to operations 27,884 17,355 10 45,249 Depreciation 524,492 41,353 37,139 602,984 (Increase) decrease in assets/deferred outflows of resources Accounts receivable 7,097 9,608 3,884 20,589 Prepaids (3,290) (885) (298) (4,473) Due from other governments (10,395) - 2,635 (7,760) Special assessments receivable (577) (822) (1,760) (3,159) Deferred pension resources 20,153 24,558 12,219 56,930 Increase (decrease) in liabilities/deferred inflows of resources Accounts payable 26,433 25,792 (13,759) 38,466 Due to other governments - (39,760) - (39,760) Accrued salaries payable 471 1,271 594 2,336 Compensated absences payable 3,944 3,944 877 8,765 Net pension liability (48,111) (62,235) (34,461) (144,807) Deferred pension resources 35,023 49,860 29,095 113,978 Net Cash Provided (Used) by Operating Activities$ 464,388$ 23,783$ (26,963)$ 461,208 Schedule of Noncash Capital and Financing Activities Capital assets purchased on account$ 402,763$ -$ -$ 402,763 Amortization of bond premiums 15,022 - 5 15,027 The notes to the financial statements are an integral part of this statement. 53 City of Albertville, Minnesota Statement of Fiduciary Net Position Fiduciary Funds December 31, 2023 Custodial Funds Assets Cash and temporary investments$ 905,815 Accounts receivable 102,585 Inventory3,181 Prepaid items 8,355 Total Assets 1,019,936 Liabilities Accounts payable28,953 Accrued wages 11,006 Total Liabilities 39,959 Net Position Restricted for organizations and other governments$ 979,977 The notes to the financial statements are an integral part of this statement. 54 City of Albertville, Minnesota Statement of Changes in Fiduciary Net Position Fiduciary Funds For the Year Ended December 31, 2023 Custodial Funds Additions Contributions Charges for services$ 833,075 Donations 135,000 Concessions 88,649 Total Contributions 1,056,724 Investment earnings32,304 Miscellaneous33,120 Total Additions 1,122,148 Deductions Professional services319,130 Supplies 38,787 Utilties 244,703 Insurance 25,550 Repairs and maintenance111,308 Capital outlay 21,759 Miscellaneous26,795 Total Deductions 788,032 334,116 Net Increase (Decrease) in Fiduciary Net Position 645,861 Net Position, January 1 $ 979,977 Net Position, December 31 The notes to the financial statements are an integral part of this statement. 55 THIS PAGE IS LEFT BLANK INTENTIONALLY 56 City of Albertville, Minnesota Notes to the Financial Statements December 31, 2023 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 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 mpose 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. All fiduciary funds, including custodial funds, use the accrual, rather than modified accrual, basis of accounting. 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. 57 City of Albertville, Minnesota Notes to the Financial Statements December 31, 2023 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 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. 58 City of Albertville, Minnesota Notes to the Financial Statements December 31, 2023 Note 1: Summary of Significant Accounting Policies (Continued) The City reports the following major proprietary funds: The Sewer fund sewage collection utility. The Water fund water utility. Additionally, the City reports the following fund types: Fiduciary Funds - accounts for activities of St. Michael-Albertville Ice Arena, Albertville Lions and Friendly City Days. The City manages the assets on behalf of these entities and administers the assets according to each entities guidance. The STMA Arena fund accounts for the activities of the ice arena which is jointly owned by the City of St. Michael, the City of Albertville and the Independent School District No. 885. The Albertville Lions fund accounts for the activities of the Albertville Lions Club. The Friendly City Days fund As a general rule, the effect of interfund activity has been eliminated from government-wide financial statements. us 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 ons. 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 -term investments with original maturities of three months or less from the date of acquisition. 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. 59 City of Albertville, Minnesota Notes to the Financial Statements December 31, 2023 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 4.General 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. 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 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 Cs) 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, 2023: Brokered Certificates of Deposit are valued using quoted market prices (Level 2 inputs) Municipal Bonds are values using a matrix pricing model (Level 2 inputs) Governmental Securities are values using a matrix pricing model (Level 1 inputs) Mortgage Backed Securities are values using a matrix pricing model (Level 1 inputs) See investments disclosure in note 3 for additional information. 60 City of Albertville, Minnesota Notes to the Financial Statements December 31, 2023 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 regul 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 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 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. -dealer were insured by SIPC or other supplemental insurance as of December 31, 2023. However, each investment brokerage portfolio is unknown. 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 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. d inflow of resources for taxes not received within 60 days after year end in the fund financial statements. 61 City of Albertville, Minnesota Notes to the Financial Statements December 31, 2023 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 repor Any residual balances outstanding between the governmental activities and business-type activities are reported in the government- Land Held for Resale The City acquires properties for redevelopment purposes. These properties are reported at their net realizable value in the 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. A portion of the notes are forgivable base on if certain criteria is met. The forgivable portion of the notes are offset by an allowance for uncollectible account. 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. 62 City of Albertville, Minnesota Notes to the Financial Statements December 31, 2023 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: 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 lifebeyond 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 Assetsin Years Land Improvements5 to 30 Infrastructure15 to 50 Buildings15 to 40 Vehicles3 to 15 Other Equipment3 to 20 63 City of Albertville, Minnesota Notes to the Financial Statements December 31, 2023 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 assets that applies to future periods 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 uciary net position have been determined on the same basis as they are reported by PERA 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 Relief Association and additions to and deductions from 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: 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. 64 City of Albertville, Minnesota Notes to the Financial Statements December 31, 2023 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 assets that applies to future periods 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 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. unassigned fund balance of 35 percent of budgeted operating expenditures for cash-flow timing needs. 65 City of Albertville, Minnesota Notes to the Financial Statements December 31, 2023 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 - 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 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 2023. B.Deficit Fund Equity The following funds had deficit fund balances as of December 31, 2023: Fund Amount Nonmajor TIF #12 Schultz & Schupp$ 214 TIF #17 Old Castle 279,602 TIF #19 Fehn 214 TIF #20 Scherer Brothers 719,160 The deficit fund balances will be eliminated with transfers from other funds and future tax increments. 66 City of Albertville, Minnesota Notes to the Financial Statements December 31, 2023 Note 2: Stewardship, Compliance and Accountability C.Excess of Expenditures over Appropriations For the year ended December 31, 2023 expenditures exceed appropriations in the following fund: 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 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 national bond rating service, or revenue obligation securities of any state or local government with taxing powers 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 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. 67 City of Albertville, Minnesota Notes to the Financial Statements December 31, 2023 Note 3: Detailed Notes on All Funds (Continued) , bank balance, FDIC coverage and pledged collateral are shown in the chart below. Investments As of December 31, 2023, the City had the following investments: CreditSegmented Fair Value Measurement Using Quality/Time Types of Investments Ratings (1)Distribution (2)AmountsLevel 1Level 2Level 3 Pooled Investments at Amortized Costs 4M FundN/ALess than 1 year$ 3,274,361 Broker Money Market FundsN/ALess than 1 year 8,843,801 BankN/ALess than 1 year 195,100 Non-pooled Investments at Fair Value Brokered Certificates of DepositNALess than 1 year 2,353,387$ -$ 2,353,387$ - Brokered Certificates of DepositNA1 to 5 years 3,613,471 - 3,613,471 - Municipal BondsAAALess than 1 year 96,207 - 96,207 - 1,638,805 - 1,638,805 - Municipal BondsAAA1 to 5 years Municipal BondsAAAMore than 5 years 387,328 - 387,328 - Municipal BondsAA+1 to 5 years 998,182 - 998,182 - Municipal BondsAALess than 1 year 243,313 - 243,313 - Municipal BondsAA1 to 5 years 3,277,827 - 3,277,827 - 1,006,495 - 1,006,495 - Municipal BondsAAMore than 5 years Municipal BondsAA-1 to 5 years 326,238 - 326,238 - Governmental SecuritiesNALess than 1 year 196,505 196,505 - - Governmental SecuritiesNA1 to 5 years 1,460,475 1,460,475 - - Governmental SecuritiesNAMore than 5 years 728,633 728,633 - - 737,940 737,940 Mortgage Backed SecuritiesNA1 to 5 years Mortgage Backed SecuritiesNAMore than 5 years 486,520 486,520 Total Investments$ 29,864,588$ 3,610,073$ 13,941,253$ - (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. 68 City of Albertville, Minnesota Notes to the Financial Statements December 31, 2023 Note 3: Detailed Notes on All Funds (Continued) Cash and Investments Summary A reconciliation of cash and temporary investments as shown on the financial statements for the City follows: B.Capital Assets Capital asset activity for the year ended December 31, 2023 was as follows: BeginningEnding BalanceIncreasesDecreasesBalance Governmental Activities Capital Assets not Being Depreciated Land$ 3,983,292$ -$ -$ 3,983,292 Construction in progress 2,555,736 970,297 (2,312,260) 1,213,773 Total Capital Assets not Being Depreciated 6,539,028 970,297 (2,312,260) 5,197,065 Capital Assets Being Depreciated Buildings 6,543,862 - - 6,543,862 Infrastructure 31,297,501 2,312,260 - 33,609,761 Land improvements 3,523,937 - - 3,523,937 Machinery and equipment 1,394,266 286,591 (31,288) 1,649,569 Vehicles 2,786,244 256,057 - 3,042,301 Total Capital Assets Being Depreciated 45,545,810 2,854,908 (31,288) 48,369,430 Less Accumulated Depreciation for Buildings (2,778,719) (1,187,303) - (3,966,022) Infrastructure (22,420,401) (131,940) - (22,552,341) Land improvements (1,787,368) - - (1,787,368) Machinery and equipment (716,912) (86,687) 31,288 (772,311) Vehicles (1,323,045) (398,485) - (1,721,530) Total Accumulated Depreciation (29,026,445) (1,804,415) 31,288 (30,799,572) Total Capital Assets Being Depreciated, Net 16,519,365 1,050,493 - 17,569,858 Governmental Activities Capital Assets, Net$ 23,058,393$ 2,020,790$ (2,312,260) $ 22,766,923 69 City of Albertville, Minnesota Notes to the Financial Statements December 31, 2023 Note 3: Detailed Notes on All Funds (Continued) BeginningEnding BalanceIncreasesDecreasesBalance Business-type Activities Capital Assets not Being Depreciated Land$ 351,834$ -$ -$ 351,834 Construction in progress 157,106 6,981,294 - 7,138,400 Total Capital Assets not Being Depreciated 508,940 6,981,294 - 7,490,234 Capital Assets Being Depreciated Buildings 4,719,693 - - 4,719,693 Infrastructure 19,886,690 - - 19,886,690 Machinery and equipment 361,395 31,200 - 392,595 Vehicles 472,461 51,323 - 523,784 Total Capital Assets Being Depreciated 25,440,239 82,523 - 25,522,762 Less Accumulated Depreciation for Buildings (1,995,491) (117,992) - (2,113,483) Infrastructure (5,895,578) (462,527) - (6,358,105) Machinery and equipment (328,844) (17,922) - (346,766) Vehicles (433,767) (4,543) - (438,310) Total Accumulated Depreciation (8,653,680) (602,984) - (9,256,664) Total Capital Assets Being Depreciated, Net 16,786,559 (520,461) - 16,266,098 Business-type Activities Capital Assets, Net$ 17,295,499$ 6,460,833$ -$ 23,756,332 Depreciation expense was charged to functions/programs of the City as follows: Governmental Activities General government$ 140,409 Public safety153,385 Public works1,399,678 Culture and recreation110,943 Total Depreciation Expense - Governmental Activities$ 1,804,415 Business-type Activities Sewer$ 524,492 Water 41,353 Storm water 37,139 Total Depreciation Expense - Business-type Activities$ 602,984 70 City of Albertville, Minnesota Notes to the Financial Statements December 31, 2023 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, 2023 is as follows: Receivable FundPayable Fund Amount Debt ServiceOther Governmental Funds$ 280,794 Debt ServiceOther Governmental Funds 602,000 Capital Outlay ReserveOther Governmental Funds 19,588 General Other Governmental Funds 25,000 Sewer Other Governmental Funds 22,500 Water Other Governmental Funds 14,500 Storm Water Other Governmental Funds 36,000 Total Interfund Balances$ 1,000,382 The above interfund balances are to eliminate deficit cash balances and finance projects. 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 IssueMaturityBalance at DescriptionRate AuthorizedIssuedDateDateYear End G.O. Improvement Refunding Bonds, Series 2011C$ 1,825,000 $ 1,825,0002.00 - 3.35%08/25/1102/01/25$ 305,000 G.O. Improvement Refunding Bonds, Series 2012B 3,215,000 3,215,0000.50 - 2.3505/10/1212/01/25 505,000 General Obligation Improvement Note, Series 2012 4,113,700 3,278,551 1.277 03/23/1208/20/32 1,710,000 Total G.O. Special Assessment Bonds and Improvement Notes$ 2,520,000 71 City of Albertville, Minnesota Notes to the Financial Statements December 31, 2023 Note 3: Detailed Notes on All Funds (Continued) Annual debt service requirements to maturity for general obligation special assessment bonds are as follows: 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: The components of the general obligation revenues bonds are as follows: Interest AuthorizedIssueMaturityBalance at DescriptionRate and IssuedDateDateYear End G.O. Utility Revenue Bonds, Series 2011A$ 520,0001.10 - 3.70%04/21/1102/01/26$ 120,000 G.O. Sewer Revenue Refunding Bonds, Series 2013A 2,515,000.70 - 2.1001/24/1312/01/25 535,000 G.O. Sewer Revenue Series 2019A 5,720,0002.00 - 3.0009/24/1902/01/39 4,720,000 General Obligation Disposal System Bonds, Series 2023A 9,400,0004.00 - 5.0006/13/2302/01/49 9,400,000 Total G.O. Revenue Bonds$ 14,775,000 72 City of Albertville, Minnesota Notes to the Financial Statements December 31, 2023 Note 3: Detailed Notes on All Funds (Continued) Annual debt service requirements to maturity for general obligation revenue bonds are as follows: Changes in Long-term Liabilities Long-term liability activity for the year ended December 31, 2023 was as follows: BeginningEndingDue Within BalanceIncreasesDecreasesBalanceOne Year Governmental Activities Bonds Payable G.O. Special Assessment bonds$ 3,333,000$ (813,000)-$ $ 2,520,000$ 581,000 Unamortized premium 18,510 - (6,418) 12,092 - Total Bonds Payable 3,351,510 (819,418)- 2,532,092 581,000 Compensated Absences Payable 89,823 89,153 (79,988) 98,988 74,241 Governmental Activity Long-term Liabilities$ 3,441,333$ 89,153$ (899,406)$ 2,631,080$ 655,241 Business-type Activities Bonds Payable G.O. Revenue bonds$ 5,915,000$ 9,400,000$ (540,000)$ 14,775,000$ 550,000 Unamortized premium 105,567 398,446 (15,022) 488,991 - G.O. Special Assessment bonds 85,000 (85,000)- - - Unamortized premium 5 - (5) - - Total Bonds Payable 6,105,572 9,798,446 (640,027) 15,263,991 550,000 Compensated Absences Payable 64,995 60,251 (51,486) 73,760 55,320 Business-type Activity Long-term Liabilities$ 6,170,567$ 9,858,697$ (691,513)$ 15,337,751$ 605,320 73 City of Albertville, Minnesota Notes to the Financial Statements December 31, 2023 Note 3: Detailed Notes on All Funds (Continued) 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. E.Components of Fund Balance At December 31, 2023 form (Nonspendable), legal restrictions (Restricted), City Council action (Committed), policy and/or intent (Assigned). The following is a summary of the components of fund balance: Fund PurposeAmount Nonspendable GeneralLand held for resale$ 51,000 GeneralPrepaid items 126,926 Capital Outlay ReservePrepaid items 10,000 Total Nonspendable 187,926 Restricted Debt ServiceDebt Service 2,783,933 Capital Outlay ReservePublic safety aid 349,995 Other governmental fundsPark improvements 969,612 Other governmental fundsTax increment financing 293,203 Total Restricted 4,396,743 Commited Other governmental fundsRevolving loan 158,747 Other governmental fundsElection Resources 575 Total Committed 159,322 Assigned Capital Outlay ReserveFuture capital projects 6,187,137 Unassigned General 2,554,745 Other governmental funds (999,190) Total Unassigned 1,555,555 Total$ 12,486,683 74 City of Albertville, Minnesota Notes to the Financial Statements December 31, 2023 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 are tax qualified plans under Section 401(a) of the Internal Revenue Code. General Employees Retirement 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. 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 Employee Plan Benefits 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 for 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. In 2023, legislation repealed the statute delaying increases for members retiring before full retirement age. 75 City of Albertville, Minnesota Notes to the Financial Statements December 31, 2023 Note 4:Defined Benefit Pension Plans - Statewide (Continued) 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. 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 2023 General Employees Fund for the years ending December 31, 2023, 2022 and 2021 were $122,281, $106,351 and $99,408, 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 the Police and Fire Fund for the years ending December 31, 2023, 2022 and 2021 were $27,424, $23,827 and $21,738, 76 City of Albertville, Minnesota Notes to the Financial Statements December 31, 2023 Note 4:Defined Benefit Pension Plans - Statewide (Continued) D. Pension Costs General Employees Fund Pension Costs At December 31, 2023, the City reported a liability of $1,056,867 for its proportionate share of the General Employees pension liability associated with the City totaled $29,103. The net pension liability was measured as of June 30, 2023, and the total pension liability used to calculate the net pension liability was determined by an actuarial valuation as of PERA during the measurement period for employer payroll paid dates from July 1, 2022 through June 30, 2023 relative was 0.0189 percent at the end of the measurement period and 0.0181 percent for the beginning of the period. City Proportionate Share of the Net Pension Liability$ 1,056,867 State of Minnesota's Proportionate Share of the Net Pension Liability Associated with the City 29,103 $ 1,085,970 Total For the year ended December 31, 2023, the City recognized pension expense of $214,529 for its proportionate share of Fund. resources and deferred inflows of resources related to pensions from the following sources: DeferredDeferred OutflowsInflows of Resourcesof Resources Differences Between Expected and Actual Economic Experience$ 34,355 $ 6,972 Changes in Actuarial Assumptions 163,850 289,678 Net Difference Between Projected and Actual Investment Earnings - 42,746 Changes in Proportion 31,680 - Contributions Paid to PERA Subsequent to the Measurement Date 63,459 - Total$ 293,344 $ 339,396 77 City of Albertville, Minnesota Notes to the Financial Statements December 31, 2023 Note 4:Defined Benefit Pension Plans - Statewide (Continued) subsequent to the measurement date will be recognized as a reduction of the net pension liability in the year ended December 31, 2024. Other amounts reported as deferred outflows and inflows of resources related to pensions will be 2024 $ 35,009 2025 (140,539) 2026 18,945 2027 (22,927) Police and Fire Fund Pension Costs net pension liability. The net pension liability was measured as of June 30, 2023, and the total pension liability used to employer payroll paid dates from July 1, 2022 through June 30, 2023, relative to the total employer contributions measurement period and 0.0106 percent for the beginning of the period. The State of Minnesota contributed $18 million to the Police and Fire Fund in the plan fiscal year ended June 30, 2023. 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, 2022. 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. The State of Minnesota is included as a non-employer contributing entity in the Police and Fire Retirement Plan Schedule of Employer Allocations and Schedule of Pension Amounts by Employer, Current Reporting Period Only (pension allocation schedules) for the $9 million in direct state aid. Police and Fire Plan employers need to recognize their situation accounting and financial reporting requirements. For the year ended December 31, 2023, the City recognized City recognized an additional -$463 as pension expense (grant revenue) for its proportionate share of the State of 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 recognized $990 for the year ended December 31, 2023 as revenue and an offsetting reduction of net pension liability for its proportionate share of the State of 78 City of Albertville, Minnesota Notes to the Financial Statements December 31, 2023 Note 4:Defined Benefit Pension Plans - Statewide (Continued) resources and deferred inflows of resources from the following sources: DeferredDeferred OutflowsInflows of Resourcesof Resources Differences Between Expected and Actual Economic Experience$ 51,202 $ - Changes in Actuarial Assumptions 209,689 266,922 Net Difference Between Projected and Actual Investment Earnings - 6,756 Changes in Proportion 20,120 - Contributions Paid to PERA Subsequent to the Measurement Date 13,859 - Total$ 294,870 $ 273,678 subsequent to the measurement date will be recognized as a reduction of the net pension liability in the year ended December 31, 2024. Other amounts reported as deferred outflows and inflows of resources related to pensions will be recognized in pension expense as follows: 2024 $ 13,426 2025 7,291 2026 44,982 2027 (11,238) 2028 (47,129) E. Long-term Expected Return on Investment 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 TargetExpected Real Asset ClassAllocationRate of Return Domestic Equity 33.5 % 5.10 % International Equity 16.5 5.30 Fixed Income 25.0 0.75 Private Markets 25.0 5.90 Total 100.0 % 79 City of Albertville, Minnesota Notes to the Financial Statements December 31, 2023 Note 4:Defined Benefit Pension Plans - Statewide (Continued) F. Actuarial Assumptions The total pension liability in the June 30, 2023, 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 7.0 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 7.0 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 and 1.00 percent for the the Police and Fire Plan. 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 27 years of service. 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 Actuarial assumptions for the General Employees Plan are reviewed every four years. The most recent four-year experience study for the General Employees Plan was completed in 2022. The assumption changes were adopted by the Board and became effective with the July 1, 2023 actuarial valuation. The most recent four-year experience study for the Police and Fire Plan was 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 2023: General Employees Fund Changes in Actuarial Assumptions - The investment return assumption and single discount rate were changed from 6.5 percent to 7.0 percent. Changes in Plan Provisions - An additional one-time direct state aid contribution of $170.1 million will be contributed to the Plan on October 1, 2023. - The vesting period of those hired after June 30, 2010, was changed from five years of allowable service to three years of allowable service. - The benefit increase delay for early retirements on or after January 1, 2024, was eliminated. - A one-time, non-compounding benefit increase of 2.5 percent minus the actual 2024 adjustment will be payable in a lump sum for calendar year 2024 by March 31, 2024. 80 City of Albertville, Minnesota Notes to the Financial Statements December 31, 2023 Note 4:Defined Benefit Pension Plans - Statewide (Continued) Police and Fire Fund Changes in Actuarial Assumptions - The investment return assumption was changed from 6.5 percent to 7.0 percent. - The single discount rate changed from 5.4 percent to 7.0 percent. Changes in Plan Provisions - An additional one-time direct state aid contribution of $19.4 million will be contributed to the Plan on October 1, 2023. - The vesting requirement for new hires after June 30, 2014 was changed from a graded 20-year vesting schedule to a graded 10-year vesting schedule, with 50 percent vesting after five years increasing incrementally to 100 percent after 10 years. - A one-time, non-compounding benefit increase of 3.0 percent will be payable in a lump sum for calendar year 2024 by March 31, 2024. - Psychological treatment is required effective July 1, 2023 prior to approval for a duty disability benefit for a - The total and permanent duty disability benefit was increased, effective July 1, 2023. G. Discount Rate The discount rate used to measure the total pension liability in 2023 was 7.0 percent. The projection of cash flows used to determine the discount rate assumed that contributions from plan members and employers will be made at rates set in Minnesota statutes. Based on these assumptions, the fiduciary net position of the General Employees and Police and Fire Funds were projected to be available to make all projected future benefit payments of current plan members. Therefore, the long-term expected rate of return on pension plan investments was applied to all periods of projected benefit payments to determine the total pension liability. H. Pension Liability Sensitivity pension liability would be if it were calculated using a discount rate one percentage point lower or one percentage point higher than the current discount rate: 1 Percent1 Percent Decrease (6.0%)Current (7.0%)Increase (8.0%) General Employees Fund$ 1,869,682$ 1,056,867$ 388,295 Police and Fire Fund 376,895 189,956 36,267 I. Pension Plan Fiduciary Net Position report that includes financial statements and required supplementary information. That report may be obtained on the Internet at www.mnpera.org. 81 City of Albertville, Minnesota Notes to the Financial Statements December 31, 2023 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 2023, the plan covered 25 active firefighters and 4vested 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 the 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, 2022, 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. 82 City of Albertville, Minnesota Notes to the Financial Statements December 31, 2023 Note 5: Defined Benefit Pension Plans - Fire Relief Association (Continued) D. Pension Costs At December 31, 2023, the City reported a net pension liability (asset) of ($225,934) for the Volunteer Firefighter Fund. The net pension asset was measured as of December 31, 2023. 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. For the year ended December 31, 2023, the City recognized a pension expense of $94,001. At December 31, 2023, the City reported deferred inflows of resources and deferred outflows of resources, its contributions subsequent to the measurement date, related to pension from the following sources: DeferredDeferred OutflowsInflows of Resourcesof Resources Differences Between Expected and Actual Experience$ - $ 34,531 Changes in Actuarial Assumptions 6,907 22,963 Investment Losses 125,466 - Contributions to Plan Subsequent to the Measurement Date 131,452 - Total$ 263,825 $ 57,494 83 City of Albertville, Minnesota Notes to the Financial Statements December 31, 2023 Note 5: Defined Benefit Pension Plans - Fire Relief Association (Continued) Deferred outflows of resources totaling $131,452 subsequent to the measurement date will be recognized as a reduction of the net pension asset in the year ended December 31, 2024. Other amounts reported as deferred outflows of resources related to the plan will be recognized in pension expense as follows: E. Actuarial Assumptions The total pension asset at December 31, 2023 was determined using the entry age normal actuarial cost method and the following actuarial assumptions: The investment rate of return changed from 5.00% to 5.50%. 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 t-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 TargetExpected Real AllocationRate of Return Asset Class Equities 54.00 % 8.00 % Fixed Income 26.00 2.90 Other 1.00 6.00 Cash 19.00 2.00 Total 100.00 % 84 City of Albertville, Minnesota Notes to the Financial Statements December 31, 2023 Note 5: Defined Benefit Pension Plans - Fire Relief Association (Continued) F.Discount Rate The discount rate used to measure the total pension liability was 5.50 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. G. PensionLiability Sensitivity discount rate 1 percent lower or 1 percent higher than the current discount rate: H. Pension Plan Fiduciary Net Position The Association issues a publicly available financial report. The report may be obtained by writing to the Albertville . 85 City of Albertville, Minnesota Notes to the Financial Statements December 31, 2023 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 2022, the most recent available, is summarized below. th Separate financial statements can be obtained by writing to the Joint Powers Water Board, 11100 50 Street NE, Albertville, Minnesota 55301. Joint Powers Water Board Statement of Net Position December 31, 2022 Assets and Deferred Outflow of Resources$ 33,897,001 Liabilities$ 2,844,265 Net Position 31,052,736 Total Liabilities and Net Position$ 33,897,001 Joint Powers Water Board Summary Statement of Activities For the Year Ended December 31, 2022 Operating Revenues$ 2,949,437 Operating Expenses 2,182,928 Operating Income 766,509 Net Nonoperating Revenues 1,283,494 Change in Net Position 2,050,003 Net Position, January 1 29,002,733 Net Position, December 31$ 31,052,736 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. 86 City of Albertville, Minnesota Notes to the Financial Statements December 31, 2023 Note 6: Joint Ventures (Continued) The City has an ongoing one-sixth equity financial interest of $250,447 as of December 31, 2023. 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, 2023 St. Michael - Albertville Ice Arena Summary Statement of Activities December 31, 2023 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. 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 $1,000,000. Liabilities, if any, include an amount for claims that have been incurred but not reported (IBNRs). any incurred but not reported claims. 87 City of Albertville, Minnesota Notes to the Financial Statements December 31, 2023 Note 7: Other Information (Continued) B.Legal Debt Margin In accordance with Minnesota statutes, the City may not incur or be subject to net debt in excess of three percent of the market value of taxable property within the City. Net debt is payable solely from ad valorem taxes and, therefore, excludes debt financed partially or entirely by special assessments, enterprise fund revenues or tax increments. The City applicable debt does not exceed the limit. C.Conduit Debt Obligations Conduit debt obligations are certain limited-obligation revenue bonds or similar debt instruments issued for the express purpose of providing capital financing for a specific third party. The City has issued revenue bonds to provide financial assistance to private-sector entities for projects deemed to be in the public interest. Although these bonds bear the name of the City, the City, the State, nor any political subdivision thereof is obligated in any manner for repayment of the bonds. Accordingly, the bonds are not reported as liabilities in the accompanying financial statements. AuthorizedBalance at Description and IssuedYear End Multifamily Housing Revenue Refunding Bonds, Series 2007$ 3,540,000$ 2,650,000 Multifamily Housing Revenue Bonds, Series 2010 4,750,000 3,790,000 Total Conduit Debt$ 8,290,000$ 6,440,000 D.Tax Increment Financing Districts 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. 88 REQUIRED SUPPLEMENTARY INFORMATION CITY OF ALBERTVILLE ALBERTVILLE, MINNESOTA FOR THE YEAR ENDED DECEMBER 31, 2023 89 City of Albertville, Minnesota Required Supplementary Information For the Year Ended December 31, 2023 Schedule of are of PERA Net Pension Liability - General Employees Fund Note: Schedule is intended to show 10-year trend. Additional years will be reported as they become available. Schedule of EmplContributions - General Employees Fund Contributions in Relation to the Contributions as StatutorilyStatutorilyContributionCity's a Percentage of RequiredRequiredDeficiencyCovered Covered Payroll YearContributionContribution(Excess)Payroll (b/c) Ending(a)(b)(a-b)(c) 12/31/23$ 122,281$ 122,281$ -$ 1,630,4107.5% 12/31/22 106,351 106,351 -1,418,0157.5 12/31/2199,408 99,408 - 1,325,4387.5 12/31/2095,790 95,790 -1,277,2017.5 12/31/1990,361 90,361 -1,204,8097.5 12/31/1877,347 77,347 -1,031,2937.5 12/31/1772,91072,910 -972,1297.5 12/31/1672,24472,244 -963,2557.5 12/31/1566,92966,929 -892,3867.5 Note: Schedule is intended to show 10-year trend. Additional years will be reported as they become available. 90 City of Albertville, Minnesota Required Supplementary Information (Continued) For the Year Ended December 31, 2023 Notes to the Required Supplementary Information - General Employee Fund Changes in Actuarial Assumptions 2023-The investment return assumption and single discount rate were changed from 6.5 percent to 7.00 percent. 2022 - The mortality improvement scale was changed from Scale MP-2020 to Scale MP-2021. 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. 91 City of Albertville, Minnesota Required Supplementary Information (Continued) For the Year Ended December 31, 2023 Notes to the Required Supplementary Information - General Employee Fund (Continued) Changes in Plan Provisions 2023 - An additional one-time direct state aid contribution of $170.1 million will be contributed to the Plan on October 1, 2023. The vesting period of those hired after June 30, 2010, was changed from five years of allowable service to three years of allowable service. The benefit increase delay for early retirements on or after January 1, 2024, was eliminated. A one-time, non-compounding benefit increase of 2.5 percent minus the actual 2024 adjustment will be payable in a lump sum for calendar year 2024 by March 31, 2024. 2022 - There were no changes in plan provisions since the previous valuation. 2021 - There were no changes in plan provisions since the previous valuation. 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 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 - and $6,000,000 thereafter. The Employer Supplemental Contribution for the Minneapolis Employees Retirement Fund changed from $21,000,000 to $ $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 $892 million. Upon consolidation, state and employer contributions were revised. 92 City of Albertville, Minnesota Required Supplementary Information (Continued) For the Year Ended December 31, 2023 Schedule of are of PERA Net Pension Liability - Police and Fire Fund City's Proportionate State's Share of the Proportionate City'sNet Pension Share of Liability as aPlan Fiduciary Proportionatethe Net Pension City'sCity'sPercentage ofNet Position Share ofLiability Proportion ofCoveredas a Percentage Fiscalthe Net PensionAssociated withCovered the Net PensionPayrollof the Total YearLiabilitythe CityTotalPayroll Liability(a/c)Pension Liability Ending(a)(b)(a+b)(c) 06/30/230.0110 %$ 189,956$ 7,690$ 197,646$ 144,548 %131.4 %86.5 06/30/220.0106 461,270 20,036 481,306 128,217 359.8 70.5 06/30/210.0102 78,733 3,520 82,253 120,137 65.5 93.7 06/30/200.0099 130,493 87,099 217,592 116,132 112.4 87.2 06/30/190.0090 95,814 - 95,814 95,184 100.7 89.3 06/30/180.0088 93,799 - 93,799 96,188 97.5 88.8 06/30/170.0090 121,511 - 121,511 89,111 136.4 85.4 06/30/160.0090 361,186 - 361,186 84,960 425.1 63.9 06/30/150.0090 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 EmpContributions - Police and Fire Fund Contributions in Relation to the Contributions as StatutorilyStatutorilyContributionCity's a Percentage of RequiredRequiredDeficiencyCovered Covered Payroll YearContributionContribution(Excess)Payroll (b/c) Ending(a)(b)(a-b)(c) 12/31/23$ 27,424$ 27,424$ -$ 154,936 %17.70 12/31/22 23,827 23,827 - 134,618 17.70 12/31/21 21,738 21,738 - 122,814 17.70 12/31/20 20,812 20,812 - 122,785 17.70 12/31/19 17,055 17,055 - 105,275 16.95 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. 93 City of Albertville, Minnesota Required Supplementary Information (Continued) For the Year Ended December 31, 2023 Notes to the Required Supplementary Information - Police and Fire Fund Changes in Actuarial Assumptions 2023 - The investment return assumption was changed from 6.5 percent to 7.00 percent. The single discount rate changed from 5.4 percent to 7.0 percent. 2022 - The mortality improvement scale was changed from Scale MP-2020 to Scale MP-2021. The single discount rate changed from 6.50 percent to 5.40 percent. 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. 94 City of Albertville, Minnesota Required Supplementary Information (Continued) For the Year Ended December 31, 2023 Notes to the Required Supplementary Information - Police and Fire Fund (Continued) 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. Changes in Plan Provisions 2023 - Additional one-time direct state aid contribution of 19.4 million will be contributed to the Plan on October 1, 2023. Vesting requirement for new hires after June 30, 2014, was changed from a graded 20-year vesting schedule to a graded 10-year vesting schedule, with 50 percent vesting after five years, increasing incrementally to 100% after 10 years. A one- time, non-compounding benefit increase of 3.0 percent will be payable in a lump sum for calendar year 2024 by March 31, 2024. Psychological treatment is required effective July 1, 2023, prior to approval for a duty disability benefit for a increased, effective July 1, 2023. 2022 - There were no changes in plan provisions since the previous valuation. 2021 - There were no changes in plan provisions since the previous valuation. 2020 - There were no changes in plan provisions since the previous valuation. 2019 - There were no changes in plan provisions since the previous valuation. 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. 95 City of Albertville, Minnesota Required Supplementary Information (Continued) For the Year Ended December 31, 2023 Schedule of Cha Net Pension Liability (Asset) and Related Ratios Note: Schedule is intended to show 10-year trend. Additional years will be reported as they become available. 96 City of Albertville, Minnesota Required Supplementary Information (Continued) For the Year Ended December 31, 2023 Note: Schedule is intended to show 10-year trend. Additional years will be reported as they become available. 97 THIS PAGE IS LEFT BLANK INTENTIONALLY 98 COMBINING AND INDIVIDUAL FUND FINANCIAL STATEMENTS AND SCHEDULES CITY OF ALBERTVILLE ALBERTVILLE, MINNESOTA FOR THE YEAR ENDED DECEMBER 31, 2023 99 THIS PAGE IS LEFT BLANK INTENTIONALLY 100 NONMAJOR GOVERNMENTAL FUNDS CITY OF ALBERTVILLE ALBERTVILLE, MINNESOTA FOR THE YEAR ENDED DECEMBER 31, 2023 101 City of Albertville, Minnesota Nonmajor Governmental Funds Combining Balance Sheet December 31, 2023 Total Special CapitalNonmajor RevenueProjectsFunds Assets Cash and temporary investments$ 505,310 $ 1,264,127 $ 1,769,437 Notes receivable 450,000 - 450,000 Less allowance for uncollectible (450,000) - (450,000) Total Assets$ 505,310 $ 1,264,127 $ 1,769,437 Liabilities Accounts and contracts payable$ -$ 120$ 120 Advances from other funds - 1,000,382 1,000,382 Unearned revenue 345,988 - 345,988 Total Liabilities 345,988 1,000,502 1,346,490 Fund Balances Restricted - 1,262,815 1,262,815 Committed 159,322 - 159,322 Unassigned - (999,190) (999,190) Total Fund Balances 159,322 263,625 422,947 Total Liabilities and Fund Balances$ 505,310 $ 1,264,127 $ 1,769,437 102 City of Albertville, Minnesota Nonmajor Governmental Funds Combining Statement of Revenues, Expenditures and Changes in Fund Balances For the Year Ended December 31, 2023 Total Special CapitalNonmajor RevenueProjectsFunds Revenues Tax increments$ -$ 462,983$ 462,983 Intergovernmental 575 - 575 Charges for service - 32,000 32,000 Investment earnings 8,051 49,428 57,479 Total Revenues 8,626 544,411 553,037 Expenditures Current Economic development - 262,394 262,394 Debt service Interest - 12,264 12,264 Total Expenditures - 274,658 274,658 Net Change in Fund Balances 8,626 269,753 278,379 Fund Balances, January 1 150,696 (6,128) 144,568 Fund Balances, December 31$ 159,322$ 263,625$ 422,947 103 THIS PAGE IS LEFT BLANK INTENTIONALLY 104 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 - This fund accounts for the accumulation of resources and payments made for the Economic Development Loan activity. Election Resources - This fund accounts for funding some of the voter operations for cities who manage their own absentee voting. Monies are received the state annually based on the number of voters the city serves for administration of absentee voting. ARPA - This fund accounts for the accumulation of resources and payments made related to the American Rescue Plan Act. Revolving Loan - This fund accounts for the accumulation of resources and payments made for loans made by the city. 105 City of Albertville, Minnesota Nonmajor Special Revenue Funds Combining Balance Sheet December 31, 2023 Special Revenue 215314316318 EconomicRevolving DevelopmentLoan Election Loan FundFund ARPAResourcesTotal Assets Cash and temporary investments$ 158,747 $ - $ 345,988 $ 575$ 505,310 Notes receivable -450,000 - - 450,000 Less allowance for uncollectible -(450,000) - - (450,000) Total Assets$ 158,747 $ - $ 345,988 $ 575$ 505,310 Liabilities Unearned revenue$ -$ -$ 345,988$ -$ 345,988 Fund Balances Committed 158,747 - - 575 159,322 Total Liabilities and Fund Balances$ 158,747$ -$ 345,988$ 575$ 505,310 106 City of Albertville, Minnesota Nonmajor Special Revenue Funds Combining Statement of Revenues, Expenditures and Changes in Fund Balances For the Year Ended December 31, 2023 Special Revenue 215314316318 EconomicRevolving DevelopmentLoan Election Loan FundFund ARPAResourcesTotal Revenues Intergovernmental$ -$ - $ - $ 575$ 575 Investment earnings 7,296 - 755 - 8,051 Total Revenues 7,296 - 755 575 8,626 Fund Balances, January 1 151,451 - (755) - 150,696 Fund Balances, December 31$ 158,747$ -$ -$ 575$ 159,322 107 THIS PAGE IS LEFT BLANK INTENTIONALLY 108 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. Park- 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. TIF #7 Senior Housing - 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 #12 Schultz & Schupp - This fund was created to facilitate the Schultz & Schupp 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 - This fund accounts for the accumulation of resources and payments made for the Old Castle project. TIF #18 AVA This fund was created to facilitate the Advanced Volumetric Alliance project within the City. This fund accounts for the financial activity related to that project. TIF #19 Fehn - This fund was created to facilitate the Fehn project within the City. This fund accounts for the financial activity related to that project. TIF #20 Scherer Brothers This fund accounts for the accumulation of resources and payments made for the TIF #20 project. 109 City of Albertville, Minnesota Nonmajor Capital Projects Funds Combining Balance Sheet December 31, 2023 312518523 TIF #7TIF #12 ParkSeniorSchultz & FundHousingSchupp Assets Cash and temporary investments$ 969,612 $ 86,030$ - Liabilities Accounts and contracts payable$ -$ -$ - Advances from other funds - - 214 Total Liabilities - - 214 Fund Balances Restricted 969,612 86,030 - Unassigned - - (214) Total Fund Balances 969,612 86,030 (214) Total Liabilities and Fund Balances$ 969,612$ 86,030$ - 110 52652752852952:531 TIF #15TIF #16TIF #17TIF #18TIF #19TIF #20 GuardianMoldOldScherer AngelsTechCastleAVAFehnBrothersTotal $ 79,610$ 2,395$ 1,192$ 125,288$ -$ -$ 1,264,127 $ -$ -$ -$ 120$ -$ -$ 120 - - 280,794 214 719,160 1,000,382 - - 280,794 120 214 719,160 1,000,502 79,610 2,395 - 125,168 - - 1,262,815 - - (279,602) - (214) (719,160) (999,190) 79,610 2,395 (279,602) 125,168 (214) (719,160) 263,625 $ 79,610$ 2,395$ 1,192$ 125,288$ -$ -$ 1,264,127 111 City of Albertville, Minnesota Nonmajor Capital Projects Funds Combining Statement of Revenues, Expenditures and Changes in Fund Balances For the Year Ended December 31, 2023 312518523 TIF #7TIF #12 ParkSeniorSchultz & FundHousingSchupp Revenues Tax increments$ -$ 72,709$ - Charges for services 32,000 - - Investment earnings (loss) 44,085 2,229 - Total Revenues 76,085 74,938 - Expenditures Current Economic development - 51,231 214 Debt service Interest - - - Total Expenditures - 51,231 214 Net Change in Fund Balances 76,085 23,707 (214) Fund Balances, January 1 893,527 62,323 - Fund Balances, December 31$ 969,612$ 86,030$ (214) 112 52652752852952:531 TIF #15TIF #16TIF #17TIF #18TIF #19TIF #20 GuardianMoldOldScherer AngelsTechCastleAVAFehnBrothersTotal $ 83,297$ 19,595$ 46,710$ 240,672 $ -$ -$ 462,983 - - - - 32,000 2,473 42 1,191 - - (592) 49,428 85,770 19,637 47,901 240,672 - (592) 544,411 76,041 18,126 214 115,504 214 850 262,394 - - 12,264 - 12,264 76,041 18,126 12,478 115,504 214 850 274,658 9,729 1,511 35,423 125,168 (214) (1,442) 269,753 69,881 884 (315,025) - - (717,718) (6,128) $ 79,610$ 2,395$ (279,602)$ 125,168$ (214)$ (719,160)$ 263,625 113 City of Albertville, Minnesota Statement of Net Position Nonmajor Proprietary Funds December 31, 2023 Business-type Activities - Enterprise Funds Total Nonmajor Storm WaterRecyclingFunds Assets Current Assets Cash and temporary investments$ 1,101,615 $ 57,851$ 1,159,466 Receivables Accounts 22,846 1,319 24,165 Delinquent special assessments 666 -666 Special assessments, current portion 2,016 8642 ,880 Due from other governments- 2 ,0002 ,000 Prepaid items2 ,272 -2 ,272 Total Current Assets 1,129,415 62,034 1,191,449 Noncurrent Assets Special assessments, net of current portion 1,103 5791 ,682 Advances to other funds 36,000- 36,000 Total Noncurrent Assets 37,103 579 37,682 Capital Assets Land 146,112 - 146,112 Infrastructure 1,509,297 - 1,509,297 Vehicles 69,177 - 69,177 Less: Accumulated depreciation (495,884) - (495,884) Net Capital Assets 1,228,702 - 1,228,702 Total Noncurrent Assets 1,265,805 579 1,266,384 Total Assets 2,395,220 62,613 2,457,833 Deferred Outflows of Resources Deferred pension resources 24,70323 24,726 114 City of Albertville, Minnesota Statement of Net Position (Continued) Nonmajor Proprietary Funds December 31, 2023 Business-type Activities - Enterprise Funds Total Nonmajor Storm WaterRecyclingFunds Liabilities Current Liabilities Accounts and contracts payable$ 380$ 60$ 440 Accrued salaries payable 5,860 2806 ,140 Compensated absences payable, current portion 5,532 -5 ,532 Total Current Liabilities 11,772 340 12,112 Noncurrent Liabilities Compensated absences payable 1,844 -1 ,844 Net pension liability 89,797 1,208 91,005 Total Noncurrent Liabilities 91,641 1,208 92,849 Total Liabilities 103,413 1,548 104,961 Deferred Inflows of Resources Deferred pension resources 27,84135 27,876 Net Position Investment in capital assets 1,228,702 - 1,228,702 Unrestricted 1,059,967 61,053 1,121,020 Total Net Position$ 2,288,669 $ 61,053$ 2,349,722 115 THIS PAGE IS LEFT BLANK INTENTIONALLY 116 City of Albertville, Minnesota Statement of Revenues, Expenses and Changes in Net Position NonmajorProprietary Funds For the Year Ended December 31, 2023 Business-type Activities - Enterprise Funds Total Nonmajor Storm WaterRecyclingFunds Operating Revenues Charges for services$ 249,441 $ 141,778 $ 391,219 Operating Expenses Personal services 196,884 10,299 207,183 Professional services 51,809 4,159 55,968 Insurance 1,645 -1 ,645 Repairs and maintenance 3,992 -3 ,992 Depreciation 37,139 - 37,139 Other charges 5,789 142,641 148,430 Total Operating Expenses 297,258 157,099 454,357 Operating Income (Loss) (47,817) (15,321) (63,138) Nonoperating Revenues (Expenses) Interest income 54,778 3,160 57,938 Intergovernmental - 8,7128 ,712 Interest expense and other (137) - (137) Other income10 - 10 Total Nonoperating Revenues (Expenses) 54,651 11,872 66,523 Change in Net Position 6,834 (3,449)3 ,385 Net Position, January 1 2,281,835 64,502 2,346,337 Net Position, December 31$ 2,288,669 $ 61,053$ 2,349,722 117 City of Albertville, Minnesota Statement of Cash Flows Nonmajor Proprietary Funds For the Year Ended December 31, 2023 Business-type Activities - Enterprise Funds Total Nonmajor Storm WaterRecyclingFunds Cash Flows from Operating Activities Receipts from customers and users$ 250,425 $ 142,918 $ 393,343 Other receipts and payments, net10 - 10 Payments to suppliers (65,478) (155,979) (221,457) Payments to employees (189,103) ( 9,756) (198,859) Net Cash Provided by Operating Activities( 4,146) (22,817) (26,963) Cash Flows from Noncapital Financing Activities Intergovernmental receipts- 8,7128 ,712 Cash Flows from Capital and Related Financing Activities Interest paid on bonds( 850)- (850) Principal paid on bonds (85,000) - (85,000) Net Cash Provided (Used) by Capital and Related Financing Activities (85,850) - ( 85,850) Cash Flows from Investing Activities Interest received on investments (loss)5 4,778 3,160 57,938 Net Increase (Decrease) in Cash and Cash Equivalents (35,218) (10,945) (46,163) Cash and Cash Equivalents, January 1 1,136,833 68,796 1,205,629 Cash and Cash Equivalents, December 31$ 1,101,615 $ 57,851 $ 1,159,466 118 City of Albertville, Minnesota Statement of Cash Flows (Continued) Proprietary Funds For the Year Ended December 31, 2023 Business-type Activities - Enterprise Funds Total Nonmajor Storm WaterRecyclingFunds Reconciliation of Operating Income (Loss) to Net Cash Provided by Operating Activities Operating income (loss)$ (47,817) $ (15,321) $ (63,138) Adjustments to reconcile operating income (loss) to net cash provided by operating activities Other income related to operations10 - 10 Depreciation 37,139 - 37,139 (Increase) decrease in assets/deferred outflows of resources Accounts receivable 2,326 1,5583 ,884 Prepaids (298) - (298) Due from other governments - 2,6352 ,635 Special assessments receivable (1,342) (418) (1,760) Deferred pension resources 12,901 (682) 12,219 Increase (decrease) in liabilities/deferred inflows of resources Accounts payable (1,945) (11,814) (13,759) Accrued salaries payable 57618 594 Compensated absences payable 877 -877 Net pension liability (32,710) (1,751) (34,461) Deferred pension resources 26,137 2,958 29,095 Net Cash Provided (Used) by Operating Activities$ (4,146)$ (22,817) $ (26,963) Schedule of Noncash Capital and Financing Activities Amortization of bond premiums$ 5 $ -$ 5 119 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, 2023 (With Comparative Actual Amounts for the Year Ended December 31, 2022) 2023 2022 Budgeted Amounts ActualVariance withActual OriginalFinalAmountsFinal BudgetAmounts Revenues Taxes General property taxes$ 2,519,337 $ 2,519,337 $ 2,473,673 $ (45,664)$ 2,336,804 Franchise fees 188,000 188,000 325,250 137,250 192,470 Total 2,707,337 2,707,337 2,798,923 91,586 2,529,274 Licenses and permits Business 60,500 60,500 62,063 1,563 60,023 Non-business 202,500 202,500 205,503 3,003 592,383 Total licenses and permits 263,000 263,000 267,566 4,566 652,406 Intergovernmental Federal ARPA - - - - 3,812 State Local government aid 50,391 50,391 49,164 (1,227) 115,251 Property tax credits - - 153 153 171 Other 156,700 156,700 199,735 43,035 183,645 Total intergovernmental 207,091 207,091 249,052 41,961 302,879 Charges for services General government 155,154 155,154 131,281 (23,873) 368,195 Public safety 520,602 520,602 520,602 - 468,761 Culture and recreation 15,000 15,000 317,722 302,722 295,306 Total charges for services 690,756 690,756 969,605 278,849 1,132,262 Fines and forfeitures - - 14,812 14,812 7,590 Special assessments - - 80,394 80,394 41,904 Investment earnings 10,000 10,000 151,130 141,130 (100,342) Miscellaneous Other 15,000 15,000 31,408 16,408 21,183 Refunds and reimbursements - - 35,419 35,419 54,064 Total miscellaneous 15,000 15,000 66,827 51,827 75,247 Total Revenues 3,893,184 3,893,184 4,598,309 705,125 4,641,220 120 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, 2023 (With Comparative Actual Amounts for the Year Ended December 31, 2022) 2023 2022 Budgeted Amounts ActualVariance withActual OriginalFinalAmountsFinal BudgetAmounts Expenditures Current General government Legislative Personal services$ 27,128$ 27,128$ 26,697$ 431$ 20,669 Supplies 2,500 2,500 2,050 450 260 Other services and charges 27,800 27,800 28,710 (910) 28,382 Total legislative 57,428 57,428 57,457 (29) 49,311 Administration Personal services 170,054 170,054 166,169 3,885 148,486 Supplies 5,000 5,000 1,450 3,550 2,212 Other services and charges 15,500 15,500 13,538 1,962 17,501 Total administration 190,554 190,554 181,157 9,397 168,199 City clerk Personal services 92,161 92,161 93,423 (1,262) 85,762 Supplies 10,000 10,000 7,051 2,949 13,701 Other services and charges 50,900 50,900 48,189 2,711 36,792 Total city clerk 153,061 153,061 148,663 4,398 136,255 Elections and voter registration Personal services - - - - 894 Other services and charges 27,000 27,000 2,464 24,536 15,362 Total elections and voter registration 27,000 27,000 2,464 24,536 16,256 Treasurer Personal services 104,010 104,010 101,245 2,765 89,158 Supplies 8,600 8,600 4,630 3,970 4,220 Other services and charges 20,750 20,750 21,293 (543) 12,268 Total treasurer 133,360 133,360 127,168 6,192 105,646 Assessing Other services and charges 48,000 48,000 50,055 (2,055) 45,250 Legal Other services and charges 30,000 30,000 49,183 (19,183) 49,075 121 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, 2023 (With Comparative Actual Amounts for the Year Ended December 31, 2022) 2023 2022 Budgeted Amounts ActualVariance withActual OriginalFinalAmountsFinal BudgetAmounts Expenditures (Continued) Current (continued) General government (continued) Engineering Other services and charges$ 35,000$ 35,000$ 76,854$ (41,854)$ 103,187 Miscellaneous Personal services 29,506 29,506 28,478 1,028 23,563 Supplies 1,500 1,500 - 1,500 - Other services and charges 256,854 256,854 300,051 (43,197) 355,778 Total miscellaneous 287,860 287,860 328,529 (40,669) 379,341 Total general government 962,263 962,263 1,021,530 (59,267) 1,052,520 Public safety Police protection Other services and charges 949,913 949,913 949,913 - 860,524 Fire protection Personal services 570,739 570,739 620,092 (49,353) 515,016 Supplies 23,850 23,850 38,880 (15,030) 24,322 Other services and charges 125,935 125,935 147,694 (21,759) 125,598 Total fire protection 720,524 720,524 806,666 (86,142) 664,936 Protective inspection Personal services 132,648 132,648 166,793 (34,145) 111,029 Supplies 1,450 1,450 3,324 (1,874) 2,706 Other services and charges 160,496 160,496 107,139 53,357 153,168 Total protective inspection 294,594 294,594 277,256 17,338 266,903 Animal control Other services and charges 12,000 12,000 6,984 5,016 10,470 Total public safety 1,977,031 1,977,031 2,040,819 (63,788) 1,802,833 122 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, 2023 (With Comparative Actual Amounts for the Year Ended December 31, 2022) 2023 2022 Budgeted Amounts ActualVariance withActual OriginalFinalAmountsFinal BudgetAmounts Expenditures (Continued) Current (continued) Public works Streets Personal services$ 308,049$ 308,049$ 285,663$ 22,386$ 254,826 Supplies 36,000 36,000 47,771 (11,771) 38,355 Other services and charges 79,650 79,650 153,268 (73,618) 81,375 Total streets 423,699 423,699 486,702 (63,003) 374,556 Street lighting Other services and charges 101,200 101,200 103,049 (1,849) 95,597 Total public works 524,899 524,899 589,751 (64,852) 470,153 Culture and recreation Parks Personal services 348,980 348,980 319,135 29,845 305,978 Supplies 26,750 26,750 34,146 (7,396) 28,885 Other services and charges 148,507 148,507 150,054 (1,547) 144,978 Total parks 524,237 524,237 503,335 20,902 479,841 Arena Personal services - - 299,636 (299,636) 281,093 Total culture and recreation 524,237 524,237 802,971 (278,734) 760,934 Economic development Other services and charges 25,000 25,000 3,502 21,498 4,492 Total Expenditures 4,013,430 4,013,430 4,458,573 (445,143) 4,090,932 Excess of Revenues Over Expenditures (120,246) (120,246) 139,736 259,982 550,288 Other Financing Sources (Uses) Transfers out - - - - (271,670) Net Change in Fund Balances (120,246) (120,246) 139,736 259,982 278,618 Fund Balances, January 1 2,592,935 2,592,935 2,592,935 - 2,314,317 Fund Balances, December 31$ 2,472,689$ 2,472,689$ 2,732,671$ 259,982$ 2,592,935 123 City of Albertville, Minnesota Debt Service Funds Combining Balance Sheet December 31, 2023 46846946:471 CSAH 19 2003A2011C2012B2012A G.O.G.O. CIPG.O. CIPG.O. Improv. ImprovementRefundingRefundingRefunding Assets Cash and temporary investments$ 67,109 $ 237,197$ 21,373 $ 68,761 Receivables Special assessments 143,073 - - - Interest - - - - Notes - - - - Advances to other funds 602,000 - - - Land held for resale 180,434 - - - Total Assets$ 992,616$ 237,197$ 21,373 $ 68,761 Deferred Inflows of Resources Unavailable revenue - special assessments$ 143,073$ -$ -$ - Unavailable revenue - notes/intergovernmental - - - - Total Deferred Inflows of Resources 143,073 - - - Fund Balances Restricted Debt service 849,543 237,197 21,373 68,761 Total Deferred Inflows of Resources and Fund Balances$ 992,616$ 237,197$ 21,373 $ 68,761 124 472473579 LachmanIndustrial 2012A2012A G.O. Improv.G.O. Improv. RefundingRefundingInterstate 94Total $ 185,731$ 411,923$ 304,581$ 1,296,675 - - 303,158 446,231 - - 3,511 3,511 - - 658,336 658,336 - 280,794 - 882,794 - 420,519 - 600,953 $ 185,731$ 1,113,236$ 1,269,586$ 3,888,500 $ -$ -$ 303,158$ 446,231 - - 658,336 658,336 - - 961,494 1,104,567 185,731 1,113,236 308,092 2,783,933 $ 185,731$ 1,113,236$ 1,269,586$ 3,888,500 125 City of Albertville, Minnesota Debt Service Funds Combining Schedule of Revenues, Expenditures And Changes in Fund Balances For the Year Ended December 31, 2023 46846946:471 CSAH 19 2003A2011C2012B2012A G.O.G.O. CIPG.O. CIPG.O. Improv. ImprovementRefundingRefundingRefunding Revenues Property taxes$ -$ 102,092$ 261,980$ - Special assessments 5,580 - - - Investment earnings 1,711 8,686 6,996 10,662 Miscellaneous - - - - Total Revenues 7,291 110,778 268,976 10,662 Expenditures Current Public works - - - - Debt service Principal - 145,000 245,000 165,000 Interest and other - 12,699 17,380 1,650 Total Expenditures - 157,699 262,380 166,650 Net Change in Fund Balances 7,291 (46,921) 6,596 (155,988) Fund Balances, January 1 842,252 284,118 14,777 224,749 Fund Balances, December 31$ 849,543$ 237,197$ 21,373 $ 68,761 126 472473 LachmanIndustrial 579 2012A2012A G.O. Improv.G.O. Improv. RefundingRefundingInterstate 94Total $ -$ -$ 53,000 $ 417,072 - - 44,733 50,313 10,864 15,258 14,399 68,576 - - 77,440 77,440 10,864 15,258 189,572 613,401 - 7,526 - 7,526 50,000 30,000 178,000 813,000 500 300 24,110 56,639 50,500 37,826 202,110 877,165 (39,636) (22,568) (12,538) (263,764) 225,367 1,135,804 320,630 3,047,697 $ 185,731$ 1,113,236$ 308,092$ 2,783,933 127 City of Albertville, Minnesota Combining Statement of Fiduciary Net Position Fiduciary Funds December 31, 2023 Albertville Total Friendly Albertville STMACustodial City Days LionsIce Arena Funds Assets Cash and temporary investments$ 72,906$ 264,171$ 568,738$ 905,815 Accounts receivable - - 102,585 102,585 Inventory - - 3,181 3,181 Prepaid items - - 8,355 8,355 Total Assets 72,906 264,171 682,859 1,019,936 Liabilities Accounts payable - - 28,953 28,953 Accrued wages - - 11,006 11,006 Total Liabilities - - 39,959 39,959 Net Position Restricted for organizations and other governments$ 72,906$ 264,171$ 642,900$ 979,977 128 City of Albertville, Minnesota Combining Statement of Changes in Fiduciary Net Position Fiduciary Funds For the Year Ended December 31, 2023 Albertville Total Friendly Albertville STMACustodial City Days LionsIce Arena Funds Additions Contributions Charges for services$ -$ -$ 833,075 $ 833,075 Donations - 135,000 - 135,000 Concessions - - 88,649 88,649 Total Contributions - 135,000 921,724 1,056,724 Investment earnings 3,353 2,985 25,966 32,304 Miscellaneous - - 33,120 33,120 Total Additions 3,353 137,985 980,810 1,122,148 Deductions Professional services - 558 318,572 319,130 Supplies - - 38,787 38,787 Utilties - - 244,703 244,703 Insurance - - 25,550 25,550 Repairs and maintenance - - 111,308 111,308 Capital outlay - - 21,759 21,759 Miscellaneous - - 26,795 26,795 Total Deductions - 558 787,474 788,032 3,353 137,427 193,336 334,116 Net Increase (Decrease) in Fiduciary Net Position 69,553 126,744 449,564 645,861 Net Position, January 1 $ 72,906$ 264,171 $ 642,900 $ 979,977 Net Position, December 31 129 City of Albertville, Minnesota Summary Financial Report Revenues and Expenditures For General Operations Governmental Funds For the Year Ended December 31, 2023 Percent TotalIncrease (Decrease) 20232022 Revenues Taxes$ 5,280,839 $ 4,517,340 16.90 % Special assessments 151,906 443,326 (65.73) Licenses and permits 267,566 652,406 (58.99) Intergovernmental 855,346 1,383,658 (38.18) Charges for services 1,001,605 1,347,603 (25.68) Fines and forfeitures 14,812 7,590 95.15 Investment earnings (losses) 564,901 (320,982) N/A Miscellaneous 149,077 236,605 (36.99) Total Revenues$ 8,286,052 $ 8,267,546 0.22% Per Capita$ 1,008$ 1,034 (2.48) % Expenditures Current General government$ 1,021,530 $ 1,102,691 (7.36) % Public safety 2,040,819 1,802,833 13.20 Public works 597,277 495,607 20.51 Culture and recreation 802,971 760,934 5.52 Economic development 265,896 1,304,800 (79.62) Capital outlay General government 214,872 5,817 3,593.86 Public safety 87,388 19,252 353.92 Public works 1,529,614 1,633,552 (6.36) Culture and recreation 204,673 123,977 65.09 Economic development - 50,000 (100.00) Debt service Principal 813,000 876,000 (7.19) Interest and other 68,903 86,344 (20.20) Total Expenditures$ 7,646,943 $ 8,261,807 (7.44) % Per Capita$ 930$ 1,033 (9.94) % Total Long-term Indebtedness$ 2,532,092 $ 3,351,510 (24.45)% Per Capita 308 419 (26.49) General Fund Balance - December 31$ 2,732,671 $ 2,592,935 5.39% Per Capita 332 324 2.54 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. 130 STATISTICAL SECTION (UNAUDITED) CITY OF ALBERTVILLE ALBERTVILLE, MINNESOTA FOR THE YEAR ENDED DECEMBER 31, 2023 131 THIS PAGE IS LEFT BLANK INTENTIONALLY 132 STATISTICAL SECTION (Unaudited) This part of the City of Albertvilleannual comprehensive financial report presents detailed information as a context for understanding what the information in the financial statements, note disclosures, and required supplementary information Financial Trends and well-being have changed over time. Revenue Capacity These schedules contain information to help the reader assess the property tax. Debt Capacity These schedules present information to help the reader assess out- 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 Operating Information These schedules contain service and infrastructure data to help the reader understand how the information in the 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. 133 City of Albertville, Minnesota Statistical Section (Unaudited) Net Position by Component Last Ten Fiscal Years (Accrual Basis of Accounting) Fiscal Year 2014201520162017 Governmental Activities Net investment in capital assets$ 15,982,545$ 16,000,840$ 15,925,140$ 16,653,225 Restricted 4,359,358 6,603,871 3,240,957 3,543,926 Unrestricted 4,482,132 4,287,635 8,260,766 8,191,522 Total Governmental Activities Net Position$ 24,824,035$ 26,892,346$ 27,426,863$ 28,388,673 Business-type Activities Net investment in capital assets$ 8,198,571$ 8,423,132$ 8,632,306$ 8,717,564 Unrestricted 9,559,515 9,038,370 8,856,604 9,562,439 Total Business-type Activities Net Position$ 17,758,086$ 17,461,502$ 17,488,910$ 18,280,003 Total Primary Government Net investment in capital assets$ 24,181,116$ 24,423,972$ 24,557,446$ 25,370,789 Restricted 4,359,358 6,603,871 3,240,957 3,543,926 Unrestricted 14,041,647 13,326,005 17,117,370 17,753,961 Total Primary Government$ 42,582,121$ 44,353,848$ 44,915,773$ 46,668,676 Note: The City implemented GASB Statement No. 68 and GASB Statement No. 71 in 2015. Years prior to 2015 have not been restated. 134 Ubcmf!2 Fiscal Year 201820192020202120222023 $ 16,996,701$ 17,512,792$ 18,587,524$ 18,777,874$ 19,783,680$ 20,273,389 3,482,527 5,398,928 5,120,588 5,683,3925,667,950 5,714,233 8,651,739 7,289,708 7,153,029 8,481,2288,458,920 9,205,344 $ 29,130,967$ 30,201,428$ 30,861,141$ 32,942,494$ 33,910,550$ 35,192,966 $ 9,046,737$ 10,922,191$ 10,788,055$ 11,001,276$ 11,189,927$ 11,419,846 9,489,105 9,102,051 10,545,577 11,685,984 12,978,713 15,654,676 $ 18,535,842$ 20,024,242$ 21,333,632$ 22,687,260$ 24,168,640$ 27,074,522 $ 26,043,438$ 28,434,983$ 29,375,579$ 29,779,150$ 30,973,607$ 31,693,235 3,482,527 5,398,928 5,120,588 5,683,3925,667,950 5,714,233 18,140,844 16,391,759 17,698,606 20,167,212 21,437,633 24,860,020 $ 47,666,809$ 50,225,670$ 52,194,773$ 55,629,754$ 58,079,190$ 62,267,488 135 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 2014201520162017 Fyqfotft Governmental Activities General government$ 923,711$ 715,779$ 858,450$ 822,891 Public safety 1,103,431 1,222,679 1,602,075 1,548,674 Public works 1,461,319 1,636,968 1,631,343 1,385,420 Culture and recreation 558,881 569,429 617,041 788,338 Economic development 137,930 229,167 117,086 182,059 Interest on long-term debt 295,924 255,379 197,099 228,006 Total Governmental Activities Expenses 4,481,196 4,629,401 5,023,094 4,955,388 Business-type Activities Sewer utility 946,586 961,507 846,349 805,318 Water utility 1,108,449 399,813 418,260 369,100 Storm water utility 170,061 182,779 187,029 265,436 Recycling 81,024 81,689 94,580 95,850 Total Business-type Activities Expenses 2,306,120 1,625,788 1,546,218 1,535,704 Total Expenses$ 6,787,316$ 6,255,189$ 6,569,312$ 6,491,092 Qsphsbn!Sfwfovft Governmental Activities Charges for services General government$ 574,438$ 489,742$ 437,398$ 630,143 Public safety 161,373 227,250 258,553 276,445 Public works 1,200 2,500 1,700 5,300 Culture and recreation 234,694 154,851 195,815 229,772 Operating grants and contributions 249,041 230,499 240,569 265,983 Capital grants and contributions 340,632 2,000,970 99,914 118,011 Total Governmental Activities Program Revenues 1,561,378 3,105,812 1,233,949 1,525,654 Business-type Activities Charges for services Sewer utility 728,308 752,094 786,153 848,544 Water utility 917,507 256,040 272,503 355,075 Storm water utility 228,659 251,960 222,630 213,666 Recycling 80,659 81,223 87,444 82,867 Operating grants and contributions 18,657 64,001 15,954 18,240 Capital grants and contributions 154,336 122,884 114,742 683,125 Total Business-Type Activities Program Revenues 2,128,126 1,528,202 1,499,426 2,201,517 Total Program Revenues$ 3,689,504$ 4,634,014$ 2,733,375$ 3,727,171 Note: The City implemented GASB Statement No. 68 and GASB Statement No. 71 in 2015. Years prior to 2015 have not been restated. 136 Ubcmf!3 Fiscal Year 201820192020202120222023 $ 737,375$ 767,343$ 1,058,803$ 1,154,441$ 1,273,530$ 1,257,890 1,529,785 1,877,457 1,941,3401,879,9891,989,621 2,242,841 1,757,764 1,195,560 3,185,3691,689,8561,598,677 2,245,612 611,258 1,069,989 882,232871,722988,150 1,147,360 221,319 223,663 237,902227,9721,354,800 265,896 167,872 191,958 149,493130,847112,596 95,580 5,025,373 5,325,970 7,455,139 5,954,827 7,317,374 7,255,179 818,418 1,102,919 1,111,727 1,067,1371,348,974 1,692,252 411,151 451,246 417,826 414,208465,093 526,850 272,024 252,627 290,418 225,386265,392 297,395 106,514 118,359 117,364 118,432145,939 157,099 1,608,107 1,925,151 1,937,335 1,825,163 2,225,398 2,673,596 $ 6,633,480$ 7,251,121$ 9,392,474$ 7,779,990$ 9,542,772$ 9,928,775 $ 608,525$ 544,149$ 640,044$ 878,311$ 1,190,569$ 380,077 296,707 335,444 458,866 435,005471,179 521,278 3,050 1,750 4,350 4,2502,125 1,450 165,908 87,525 301,435 1,193,567315,636 355,279 193,526 191,470 852,421 403,935380,209 1,071,298 150,340 359,247 1,324,103 677,714 1,606,812 11,930 1,418,056 1,519,585 3,581,219 3,592,782 3,966,530 2,341,312 868,052 866,602 1,072,549 1,147,9841,010,675 1,106,098 362,737 348,310 411,854 452,529493,578 496,765 211,420 209,206 222,281 281,058300,772 249,451 94,134 105,028 95,461 116,919135,717 141,778 16,794 22,416 22,273 17,93019,637 18,581 201,561 1,515,818 1,203,165 1,129,841 1,818,198 2,426,134 1,754,698 3,067,380 3,027,583 3,146,261 3,778,577 4,438,807 $ 3,172,754$ 4,586,965$ 6,608,802$ 6,739,043$ 7,745,107$ 6,780,119 137 City of Albertville, Minnesota Statistical Section (Unaudited) Changes in Net Position (Continued) Last Ten Fiscal Years (Accrual Basis of Accounting) Fiscal Year 2014201520162017 Ofu!Sfwfovft!)Fyqfotft* Governmental activities$ (2,919,818) $ (1,523,589) $ (3,789,145) $ (3,429,734) Business-type activities (177,994) (97,586) (46,792) 665,813 Total Primary Government Revenues (Expenses)$ (3,097,812) $ (1,621,175) $ (3,835,937) $ (2,763,921) Hfofsbm!Sfwfovft!boe!Puifs!Dibohft!jo!Ofu!Qptjujpo Hfofsbm!Sfwfovft Governmental Activities Taxes Property taxes, levied for general purpose$ 2,478,224$ 2,606,772$ 2,746,144$ 2,839,090 Property taxes, levied for debt service 805,791 885,270 921,796 916,050 Tax increments 28,648 109,132 169,651 230,131 Franchise fees - - - - Grants and contributions not restricted to specific programs 90,269 98,932 102,311 93,140 Unrestricted investment earnings (losses) 182,322 86,644 103,541 138,248 Gain on sale of capital assets - 3,450 - 49,020 Miscellaneous - 132,569 280,219 172,681 Transfers 330,236 - - (46,816) Total Governmental Activities General Revenues 3,915,490 3,922,769 4,323,662 4,391,544 Business-type Activities Property taxes levied for general purposes - - - - Grants and contributions not restricted to specific programs - - - - Unrestricted investment earnings (losses) 197,709 89,694 74,200 78,464 Transfers (330,236) - - 46,816 Total Business-type Activities General Revenues (132,527) 89,694 74,200 125,280 Total Primary Government$ 3,782,963$ 4,012,463$ 4,397,862$ 4,516,824 Dibohf!jo!Ofu!Qptjujpo Governmental activities$ 995,672$ 2,399,180$ 534,517$ 961,810 Business-type activities (310,521) (7,892) 27,408 791,093 Total Primary Government$ 685,151$ 2,391,288$ 561,925$ 1,752,903 Note: The City implemented GASB Statement No. 68 and GASB Statement No. 71 in 2015. Years prior to 2015 have not been restated. 138 Ubcmf!3 Fiscal Year 201820192020202120222023 $ (3,607,317)$ (3,806,385) $ (3,873,920) $ (2,362,045) $ (3,350,844) $ (4,913,867) 146,591 1,142,229 1,090,248 1,321,098 1,553,179 1,765,211 $ (3,460,726)$ (2,664,156) $ (2,783,672) $ (1,040,947) $ (1,797,665) $ (3,148,656) $ 3,054,845$ 3,497,033$ 3,469,449$ 3,614,097$ 3,852,811$ 4,143,704 831,410 508,855 506,868 472,425 473,974 364,072 231,247 232,684 240,457 220,464 197,675 462,983 - - - - - 325,250 111,979 113,056 126,418 115,426 115,422 305,373 120,130 384,339 190,441 11,191 (320,982) 564,901 - 140,879 - - - 30,000 - - - 9,795 - - - - - - - - 4,349,611 4,876,846 4,533,633 4,443,398 4,318,900 6,196,283 - - - - 222,934 220,624 - - - - 58,468 111,961 109,248 346,171 219,142 32,530 (353,201) 808,086 - - - - - - 109,248 346,171 219,142 32,530 (71,799) 1,140,671 $ 4,458,859$ 5,223,017$ 4,752,775$ 4,475,928$ 4,247,101$ 7,336,954 $ 742,294$ 1,070,461$ 659,713$ 1,070,461$ 968,056$ 1,282,416 255,839 1,488,400 1,309,390 1,488,4001,481,380 2,905,882 $ 998,133$ 2,558,861$ 1,969,103$ 2,558,861$ 2,449,436$ 4,188,298 139 City of Albertville, Minnesota Statistical Section (Unaudited) Fund Balances of Governmental Funds Last Ten Fiscal Years Fiscal Year 2014201520162017 General Fund Nonspendable$ 51,000$ 51,000$ 51,000$ 51,000 Unassigned 1,798,358 1,876,186 1,887,922 2,258,988 Total General Fund$ 1,849,358 $ 1,927,186 $ 1,938,922 $ 2,309,988 All Other Governmental Funds Nonspendable$ 13,184$ 2,695$ 1,614$ - Restricted 5,276,492 3,263,871 3,272,492 3,670,865 Committed - - - - Assigned 9,920,395 5,969,374 6,412,396 6,076,678 Unassigned (971,681) (842,241) (469,839) (514,315) Total All Other Governmental Funds$ 14,238,390$ 8,393,699 $ 9,216,663 $ 9,233,228 140 Ubcmf!4 Fiscal Year 201820192020202120222023 $ 133,328 $ 140,151 $ 90,389$ 136,098 $ 159,875 $ 177,926 2,252,982 2,477,774 3,200,223 2,178,219 2,433,060 2,554,745 $ 2,386,310 $ 2,617,925 $ 3,290,612 $ 2,314,317 $ 2,592,935 $ 2,732,671 $ -$ -$ -$ -$ -$ 10,000 3,758,526 3,387,291 3,388,480 4,090,889 4,074,312 4,396,743 - 152,836 156,143 155,950 151,451 159,322 6,390,844 4,853,536 3,965,154 5,634,162 6,062,374 6,187,137 (432,912) (425,086) (389,806) (353,483) (1,033,498) (999,190) $ 9,716,458 $ 7,968,577 $ 7,119,971 $ 9,527,518 $ 9,254,639 $ 9,754,012 141 City of Albertville, Minnesota Statistical Section (Unaudited) Changes in Fund Balances of Governmental Funds Last Ten Fiscal Years Fiscal Year 2014201520162017 Revenues Taxes$ 3,302,350 $ 3,596,744 $ 3,840,259 $ 4,018,573 Licenses and permits 167,584 197,878 174,928 239,833 Intergovernmental 209,667 1,958,201 282,508 268,493 Charges for services 857,837 648,359 662,313 888,979 Fines and forfeitures - 1,000 - 200 Special assessments 384,727 434,682 246,350 196,021 Investment earnings (losses) 282,344 86,644 103,541 138,248 Miscellaneous 214,302 358,035 537,803 385,472 Total Revenues 5,418,811 7,281,543 5,847,702 6,135,819 Expenditures General government 748,364 606,158 738,974 735,742 Public safety 1,006,524 1,154,656 1,302,463 1,350,500 Public works 413,536 634,542 431,596 387,744 Culture and recreation 401,593 387,025 445,486 501,693 Economic development 96,866 203,626 76,875 141,632 Capital outlay 328,322 841,615 883,733 1,470,904 Debt service Principal 918,000 3,191,851 963,240 962,822 Interest 288,757 234,925 170,635 198,979 Bond issuance costs 7,458 - - - Total Expenditures 4,209,420 7,254,398 5,013,002 5,750,392 Excess (Deficiency) of Revenues Over (Under) Expenditures 1,209,391 27,145 834,700 385,427 Other Financing Sources (Uses) Transfers in 868,993 344,000 295,133 323,424 Bonds refunded 528,062 - - - Bond issuance - 235,000 - - Sale of capital assets - 3,450 - 49,020 Transfers out (1,062,688) (344,000) (295,133) (370,240) Total Other Financing Sources (Uses) 334,367 238,450 - 2,204 Net Change in Fund Balances$ 1,543,758 $ 265,595 $ 834,700 $ 387,631 Debt Service as a Percentage of Noncapital Expenditures29.6%52.5%25.2%26.4% 142 Ubcmf!5 Fiscal Year 201820192020202120222023 $ 4,109,257 $ 4,233,810 $ 4,221,332 $ 4,323,838 $ 4,517,340 $ 5,280,839 258,992 215,108 300,888 403,265 652,406 267,566 312,506 438,035 2,077,442 302,106 1,383,658 855,346 845,182 1,004,236 1,076,374 2,131,559 1,347,603 1,001,605 1,500 500 - 500 7,590 14,812 291,412 259,787 352,949 232,077 443,326 151,906 120,130 384,339 190,441 11,191 (320,982) 564,901 175,104 138,771 181,825 262,487 236,605 149,077 6,114,083 6,674,586 8,401,251 7,667,023 8,267,546 8,286,052 894,542 791,250 920,918 1,021,471 1,102,691 1,021,530 1,395,937 1,557,191 1,629,347 1,717,622 1,802,833 2,040,819 411,944 437,365 427,682 419,418 495,607 597,277 533,359 748,116 763,021 725,853 760,934 802,971 175,193 178,507 210,170 203,972 1,304,800 265,896 1,010,977 3,380,525 3,646,864 1,178,706 1,832,598 2,036,547 992,000 939,000 856,000 864,000 876,000 813,000 140,579 165,017 123,168 104,729 86,344 68,903 - - - - - - 5,554,531 8,196,971 8,577,170 6,235,771 8,261,807 7,646,943 559,552 (1,522,385) (175,919) 1,431,252 5,739 639,109 50,068 151,390 - 1,803,693 271,670 - - - - - - - - - - - - - - 6,119 - - - - (50,068) (151,390) - (1,803,693) (271,670) - - 6,119 - - - - $ 559,552 $ (1,516,266)$ (175,919)$ 1,431,252 $ 5,739$ 639,109 24.5%20.6%14.4%18.3%14.8%14.3% 143 City of Albertville, Minnesota Statistical Section (Unaudited) Tax Capacity, Market Value and Estimated Actual Value of Taxable Property (Shown by Year of Tax Collectability) 2014201520162017 Taxable Market Value Personal property$ 5,239,900$ 5,279,500$ 5,442,200$ 6,101,100 Real estate 500,588,200 542,867,500 567,786,000 656,054,200 Total Taxable Market Value$ 505,828,100 $ 548,147,000 $ 573,228,200 $ 662,155,300 Estimated Actual Value of Taxable Property$ 556,863,100 $ 595,816,100 $ 620,513,900 $ 705,380,300 Taxable Market Value as a Percentage of Estimated Actual Value 90.84 % 92.00 % 92.38 % 93.87 % Tax Capacity Personal property$ 102,426$ 103,325$ 106,630$ 111,611 Real estate 6,379,976 6,780,598 7,026,956 7,384,373 Subtotal 6,482,402 6,883,923 7,133,586 7,495,984 Less: tax increment (23,265) (79,615) (123,377) (169,948) Net Tax Capacity$ 6,459,137 $ 6,804,308 $ 7,010,209 $ 7,326,036 Tax levies General$ 2,397,983$ 2,547,180$ 2,749,549$ 2,863,190 Debt service 902,141 949,967 921,691 916,045 Total$ 3,300,124$ 3,497,147$ 3,671,240$ 3,779,235 Tax capacity rate General 37.125% 37.435% 39.222% 39.082 Debt service 13.967 13.961 13.148 12.504 Total 51.092% 51.396% 52.370% 51.586 Source: Wright County Auditor/Treasurer Department 144 Ubcmf!6 201820192020202120222023 $ 6,101,100$ 6,389,500$ 7,128,500$ 5,738,000$ 6,110,500$ 6,154,000 656,054,200 707,392,300 745,489,800 832,227,900 1,001,635,873 1,163,031,027 $ 662,155,300 $ 713,781,800 $ 752,618,300 $ 837,965,900 $ 1,007,746,373 $ 1,169,185,027 $ 705,380,300 $ 758,532,600 $ 804,315,050 $ 853,083,000 $ 1,044,060,600 $ 1,044,060,600 93.87 % 94.10 % 93.57 % 98.23 % 96.52 % 111.98 % $ 119,863$ 125,822$ 140,544$ 155,457$ 120,132$ 122,330 7,961,892 8,513,031 8,952,664 9,255,718 9,810,351 11,702,153 8,081,755 8,638,853 9,093,208 9,411,175 9,930,483 11,824,483 (171,863) (171,188) (179,241) (186,700) (152,298) (421,581) $ 7,909,892 $ 8,467,665 $ 8,913,967 $ 9,224,475 $ 9,778,185$ 11,402,902 $ 3,056,908$ 3,442,876$ 3,414,096$ 3,572,049$ 3,782,812$ 4,121,198 831,410 561,855 781,384 745,104 749,908 637,696 $ 3,888,318$ 4,004,731$ 4,195,480$ 4,317,153$ 4,532,720$ 4,758,894 38.647% 40.659% 38.301% 38.724% 38.686 % 36.142 % 10.511 6.635 8.766 8.077 7.669 5.592 49.158% 47.294% 47.066% 46.801% 46.355 % 41.734 % 145 THIS PAGE IS LEFT BLANK INTENTIONALLY 146 Ubcmf!7 City of Albertville, Minnesota Statistical Section (Unaudited) Property Tax Capacity Rates - Direct and Overlapping Governments (Per $1,000 of Tax Capacity) Overlapping Rates SchoolSchool Year DistrictDistrict Taxes PayableCityCountyNo. 885No. 728 2014 51.092 43.450 51.553 51.279% 2015 51.396 40.530 51.082 51.635 2016 52.370 39.970 49.102 39.266 2017 51.586 39.599 46.893 36.659 2018 49.158 39.946 47.950 36.137 2019 47.294 44.273 47.143 32.865 2020 47.066 44.421 45.280 34.371 2021 43.717 46.801 44.205 31.712 2022 43.749 46.355 42.428 30.884 2023 37.844 41.793 35.446 26.600 Source: Wright County Auditor/Treasurer Department Overlapping rates are those of local and county governments that apply to property owners within the City. Not all overlapping rates apply to all City property owners (e.g. the rates for special districts apply only to the proportion of the government's property owners whose property is located within the geographic boundaries of the special district). 147 City of Albertville, Minnesota Statistical Section (Unaudited) Principal Taxpayers Current Year and Ten Years Ago December 31, 2023 2023 Percent of Total Tax Tax Capacity TaxpayerCapacityRank CPG Partners, LP$ 1,109,278 1 9.73% Advanced Volumetric Alliance 269,2202 2.36 Albertville Station LLC 240,4663 2.11 Preserve at Albertville 181,0554 Border States Industries, Inc. 125,5205 1.10 Scherer LP 101,2506 0.89 Centerpoint Energy 95,0327 0.83 Evans Park Inc 94,4858 0.83 Fraser Building LP 94,2669 0.83 GMR Albertville LLC 93,59610 0.82 EPK Family Fund LLC Carman's Bay Investments LLC - - CWB Albertville Crossing, LLC US Bank NA - - Albertville Medical Building, LLC - - Mollie LLC - - HGP Architectural Glass, Inc - - Minnegasco, Inc - - Albertville Plaza, LLC Welcome Furniture and AppliancesTotals$ 2,404,168 19.50 % Northern States Power Source: Wright County Auditor/Treasurer Department 148 Ubcmf!8 2014 Percent of Total Tax Tax Capacity CapacityRank $ 1,097,256 1 16.99% - - - - 60,4206 0.94 - - - - - - - - - - 191,2502 2.96 84,3383 1.31 69,2504 1.07 63,6825 0.99 48,7487 0.75 48,3528 0.75 46,9749 0.73 45,43410 0.70 $ 1,755,704 27.18% 149 Ubcmf!9 City of Albertville, Minnesota Statistical Section (Unaudited) Property Tax Levies and Collections Last Ten Fiscal Years Percent (1) Percentageof Total CollectionCollection of LevyCollections Fiscal Totalof Currentin SubsequentTotal Collectedto Levy YearLevyYear's LevyYearsCollections 2014$ 3,300,124$ 3,263,343 98.89%$ 36,781$ 3,300,124 100.00 % 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 21,934 3,999,113 99.86 2020 4,195,480 4,177,746 99.58 12,514 4,190,260 99.88 2021 4,317,153 4,310,349 99.84 6,804 4,317,153 100.00 2022 4,532,720 4,515,278 99.62 3,519 4,518,797 99.69 2023 4,758,894 4,728,200 99.36 - 4,728,200 99.36 Source: Wright County Auditor/Treasurer Department (1) Includes state paid property tax credits. 150 Ubcmf!: City of Albertville, Minnesota Statistical Section (Unaudited) Ratios of Outstanding Debt by Type Last Ten Fiscal Years Governmental ActivitiesBusiness-type Activities GeneralGeneralGeneralTotal Percentage of Fiscal ObligationObligationObligationPrimaryPer Personal Income YearBondsRevenue BondsBondsGovernmentCapita 2014$ 12,807,462$ 5,855,190$ 1,242,391$ 19,905,043 7.34 %$ 2,861 2015 9,845,317 3,120,172 606,085 13,571,574 6.75 2,747 2016 8,876,782 2,635,154 536,019 12,047,955 4.48 1,869 2017 7,908,666 2,365,136 466,535 10,740,337 3.73 1,647 2018 6,911,370 2,090,118 395,229 9,396,717 3.20 1,457 2019 5,967,076 7,656,726 318,923 13,942,725 2.66 1,268 2020 5,104,343 7,064,673 242,617 12,411,633 4.00 1,863 2021 4,233,610 6,547,620 166,311 10,947,541 2.51 1,386 2022 3,351,510 6,020,567 85,005 9,457,082 2.01 1,182 2023 2,532,092 15,263,991 - 17,796,083 3.27 2,165 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. 151 Ubcmf!21 City of Albertville, Minnesota Statistical Section (Unaudited) Ratios of General Bonded Debt Outstanding Last Ten Fiscal Years Less Percentage of Amounts Estimated Actual GeneralAvailable inNet Value of Fiscal ObligationDebt ServiceBondedPer Taxable Property YearBondsFundsDebtCapita 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 1.04 884 2017 8,375,201 3,216,178 5,159,023 0.73 700 2018 7,306,599 3,133,185 4,173,414 0.55 563 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) (35) 2022 3,436,515 4,246,523 (810,008) (0.08) (103) 2023 2,532,092 3,875,489 (1,343,397) (0.13) (163) 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. 152 Ubcmf!22 City of Albertville, Minnesota Statistical Section (Unaudited) Computation of Direct and Overlapping Debt December 31, 2023 GrossAmount Bondedof Percentage Debt UsedNet Debt Applicable to For Net DebtApplicable District Calculationto District Direct Debt City of Albertville$ 2,532,092 100.00 %$ 2,532,092 School District #885 126,585,000 22.26 28,177,821 School District #728 285,730,000 9.77 27,915,821 Wright County 133,535,000 4.77 6,369,620 Total Overlapping Debt 545,850,000 11.44 62,463,262 Total Direct and Overlapping Debt$ 548,382,092 11.85%$ 64,995,354 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. 153 City of Albertville, Minnesota Statistical Section (Unaudited) Legal Debt Margin Information Last Ten Fiscal Years Fiscal Year 2014201520162017 Debt Limit (1)$ 15,174,843$ 16,444,410$ 17,196,846$ 19,864,659 Total Net Debt Applicable to Limit - - - - Total$ 15,174,843$ 16,444,410$ 17,196,846$ 19,864,659 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. 154 Ubcmf!23 Fiscal Year 201820192020202120222023 $ 19,864,659$ 21,413,454$ 22,578,549$ 25,138,977$ 30,232,391 35,075,551 - - - - - - $ 19,864,659$ 21,413,454$ 22,578,549$ 25,138,977$ 30,232,391$ 35,075,551 $ -$ -$ -$ -$ -$ - Legal Debt Margin Calculation for Fiscal Year 2020 Taxable Market Value$ 1,169,185,027 Debt Limit (3% of Market Value)$ 35,075,551 Debt Applicable to Limit General Obligation Bonds (2) - Less: Amount Available in Debt Service Funds - Total Net Debt Applicable to Limit - Legal Debt Margin$ 35,075,551 155 Ubcmf!24 City of Albertville, Minnesota Statistical Section (Unaudited) Pledged-Revenue Coverage Last Ten Fiscal Years General Obligation Revenue Bonds (1)Net Debt Service FiscalGross(2)Revenue YearRevenueExpensesAvailablePrincipalInterestCoverage 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 1,373,515 937,245 436,270 510,000 159,795 0.65 2022 1,197,329 1,109,902 87,427 520,000 147,975 0.13 2023 2,362,880 1,166,640 1,196,240 540,000 132,344 1.78 156 Ubcmf!25 City of Albertville, Minnesota Demographic and Economic Statistics Last Ten Fiscal Years TotalPer Capita Unemployment Fiscal Number ofPersons perPersonal Personal MedianSchool Rate (7) YearPopulation (1)Households (2)Household (2)Income (3)Income (4)Age (5)Enrollment (6) 2014 7,247 2,434 2.98$ 308,178,675$ 42,52534.6 5,725 3.9 % 2015 7,262 2,411 3.01 321,866,364 44,32234.6 5,900 2.8 2016 7,317 2,476 2.96 331,057,665 45,24534.6 6,083 3.7 2017 7,370 2,480 2.97 335,335,000 45,50034.6 6,300 3.5 2018 7,412 2,491 2.98 352,640,724 47,57734.6 6,300 3.5 2019 7,485 2,516 2.97 348,748,605 46,59334.6 6,300 3.2 2020 7,519 2,527 2.98 388,048,071 51,60936.6 6,300 3.7 2021 7,519 2,527 2.98 415,184,142 55,21836.6 6,300 3.8 2022 7,896 2,654 2.98 436,001,328 58,75636.6 6,500 2.8 2023 8,220 2,740 3.00 544,081,800 66,19036.9 6,470 2.7 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. 157 City of Albertville, Minnesota Principal Employers Current Year and Ten Years Ago 2023 Percentage of Total City EmployerEmployment EmployeesRank ISD No. 885, St. Michael-Albertville 9491 18.98 % Outlets at Albertville 5002 10.00 Coborn's 1983 3.96 Advanced Volumetric Alliance, LLC 1564 3.00 Oldcastle Building Envelopes 1505 3.00 Fehn Gravel and Excavating, Inc. 806 1.60 Guardian Angels - Engel Haus 657 1.30 Mold-Tech, Inc. 618 1.22 Don's Bus Service50 9 1.00 Sherer Brothers Truss 4810 0.96 Fraser Steel Co. - - D J's Total Home Care Center- - Total 5,000* 45.02% Source: Northland Securities *This is an estimation provided by the City. 158 Ubcmf!26 2014 Percentage of Total City Employment EmployeesRank 6992 13.98 % 2,0001 40.00 1404 2.80 - - 1423 2.84 55 7 1.10 439 - - - 59 6 1.18 4010 0.80 805 1.60 488 0.96 5,000* 65.26% 159 THIS PAGE IS LEFT BLANK INTENTIONALLY 160 Ubcmf!27 City of Albertville, Minnesota Full-time Equivalent City Government Employees by Function Last Ten Fiscal Years Function 2014201520162017201820192020202120222023 General Government 6.3 6.3 6.3 6.3 6.7 6.7 6.7 6.7 6.7 7.7 Public Safety Fire Full Time Fire Chief - - 1 1.0 1.0 1.0 1.0 1.0 1.0 1.0 Civilians (1) 30.0 29.0 31.0 29.0 32.0 32.0 30.0 30.0 28.0 28.0 Public Works Engineering 0.3 0.3 0.3 0.3 0.3 0.3 0.3 0.3 0.3 0.3 Maintenance 1.5 1.5 2.0 2.0 2.0 2.0 2.5 2.5 2.5 2.5 Culture and Recreation Parks 1.5 1.5 2.0 2.0 2.0 2.0 2.5 2.5 2.5 2.5 Water 1.5 1.5 1.5 1.5 1.5 1.5 1.5 1.5 1.5 1.5 Sewer 1.5 1.5 1.5 1.5 1.5 1.5 1.5 1.5 1.5 1.5 Total 42.5 41.6 45.6 43.6 47.0 47.0 46.0 46.0 44.0 45.0 Source: City of Albertville (1)The fire department is made up entirely of volunteer civilians. They are used on an on-call basis only. 161 Ubcmf!28 City of Albertville, Minnesota Operating Indicators By Function Last Ten Fiscal Years Function 2014201520162017201820192020202120222023 Fire Fire Calls 229 254 256 276 366 418 414 569 549555 Inspections 212 211 10 6195 40 20 20 8060 Building/Engineering Permits Issued 412 453 542 477 468 494 696 837 863642 Public Works Street Sweeping (Hours) 74 80123 115 67 98100 100 125128 Snowplowing (Hours) 791 723 387 210 364 610 412 260 608678 Equipment Repair (Hours) 750 600 692 663 829 925 900 803 1,100634 Water New Connections 21 22 24 20 24 25 35 65 5477 Water Mains Breaks 2 6 3 3 3 2 2 2 33 Sewer Average Daily Treatment Flow (Thousands of Gallons) 475,000 510,000 474,000 502,000 484,000 511,000 521,000 521,000 517,000520,000 Sources: City of Albertville Note: Indicators are not available for the general government function. 162 City of Albertville, Minnesota Ubcmf!29 Capital Asset Statistics by Function Last Ten Fiscal Years Function 2014201520162017201820192020202120222023 Public Safety Fire stations Stations1 1 1 1 1 1 1 1 1 1 Public Works Highways and streets Streets (miles) 36 36 38 38 38 39 39 39 39 39 Street lights 417 417 417 417 417 417 430 430 432 432 Traffic signals6 7 7 7 7 7 7 7 7 8 Culture and Recreation Parks division Parks 11 11 11 11 11 11 12 12 12 12 Parks acreage 125 125 125 125 125 125 131 131 131 131 Arena/Civic Center1 1 1 1 1 1 1 1 1 1 Baseball diamonds4 4 4 4 4 4 4 4 4 4 Basketball courts5 5 5 5 5 5 5 5 5 5 Bike trails (miles)5 5 5 5 5 5 5 5 5 5 Hockey rinks/outdoor2 2 2 2 2 2 2 2 2 2 Softball diamonds2 2 2 2 2 2 2 2 2 2 Tennis courts5 5 5 5 5 5 5 5 5 5 Skate Park1 1 Volleyball courts1 1 1 1 1 1 1 1 - - Utilities Water Miles of water main 52 52 52 52 52 52 55 55 55 55 Consumers Maximum daily capacity (gallons) Sewer Miles of sanitary sewer 37 37 37 37 37 37 39 39 39 39 Lift stations 10 10 10 10 10 10 10 10 10 10 Maximum daily treatment capacity (gallons) 929,000 929,000 929,000 929,000 929,000 929,000 929,000 929,000 929,000 929,000 Storm sewer Miles of storm sewer 35 35 35 35 35 35 36 36 36 36 Source: City of Albertville Note: No capital asset indicators are available for the general government function. 163