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2024 Annual Comprehensive Financial Report Annual Comprehensive Financial Report For the Year Ended December 31, 2024 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, 2024 ADAM NAFSTAD - CITY ADMINISTRATOR TINA LANNES - FINANCE DIRECTOR PREPARED BY DEPARTMENT OF FINANCE Member of the Government Finance Officers’ Association of the United States and Canada 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, 2024 Page No. Introductory Section Letter of Transmittal from City Administrator and Finance Director 11 Certificate of Achievement of Excellence in Financial Reporting 15 Organizational Chart 16 Elected and Appointed Officials 17 Financial Section Independent Auditor’s Report 21 Management’s Discussion and Analysis 25 Basic Financial Statements Government-wide Financial Statements Statement of Net Position 39 Statement of Activities 40 Fund Financial Statements Governmental Funds Balance Sheet 44 Reconciliation of the Balance Sheet to the Statement of Net Position 45 Statement of Revenues, Expenditures and Changes in Fund Balances 46 Reconciliation of the Statement of Revenues, Expenditures and Changes in Fund Balances to the Statement of Activities 47 General Fund Statement of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual 49 Proprietary Funds Statement of Net Position 50 Statement of Revenues, Expenses and Changes in Net Position 53 Statement of Cash Flows 54 Fiduciary Funds Statement of Fiduciary Net Position 55 Statement of Changes in Fiduciary Net Position 57 Notes to the Financial Statements 59 Required Supplementary Information Schedule of Employer’s Share of Public Employees Retirement Association Net Pension Liability - General Employees Retirement Fund 92 Schedule of Employer’s Public Employees Retirement Association Contributions - General Employees Retirement Fund 92 Notes to the Required Supplementary Information - General Employee Retirement Fund 93 Schedule of Employer’s Share of Public Employees Retirement Association Net Pension Liability - Public Employees Police and Fire Fund 95 Schedule of Employer’s Public Employees Retirement Association Contributions - Public Employees Police and Fire Fund 95 Notes to the Required Supplementary Information - Public Employees Police and Fire Fund 96 Schedule of Changes in the Fire Relief Association’s Net Pension Liability (Asset) and Related Ratios 98 Schedule of Employer’s Fire Relief Association Contributions 99 5 THIS PAGE IS LEFT BLANK INTENTIONALLY 6 City of Albertville, Minnesota Annual Comprehensive Financial Report Table of Contents (Continued) For the Year Ended December 31, 2024 Page No. Combining and Individual Fund Financial Statements and Schedules Nonmajor Governmental Funds Combining Balance Sheet 104 Combining Statement of Revenues, Expenditures and Changes in Fund Balances 105 Nonmajor Special Revenue Funds Combining Balance Sheet 108 Combining Statement of Revenues, Expenditures and Changes in Fund Balances 109 Nonmajor Capital Projects Funds Combining Balance Sheet 112 Combining Statement of Revenues, Expenditures and Changes in Fund Balances 114 Nonmajor Proprietary Funds Statement of Net Position 116 Statement of Revenues, Expenses and Changes in Net Position 119 Statement of Cash Flows 120 General Fund Schedule of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual 122 Debt Service Funds Combining Balance Sheet 126 Combining Schedule of Revenues, Expenditures and Changes in Fund Balances 128 Fiduciary Funds Combining Statement of Fiduciary Net Position 130 Combining Statement of Changes in Fiduciary Net Position 131 Summary Financial Report Revenues and Expenditures for General Operations - Governmental Funds 132 Table Page No. Statistical Section (Unaudited) Net Position by Component 1 136 Changes in Net Position 2 138 Fund Balances of Governmental Funds 3 142 Changes in Fund Balances of Governmental Funds 4 144 Tax Capacity, Market Value and Estimated Actual Value of Taxable Property 5 146 Property Tax Capacity Rates - Direct and Overlapping Governments 6 148 Principal Taxpayers 7 149 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 15 159 Full-time Equivalent City Government Employees by Function 16 160 Operating Indicators by Function 17 162 Capital Asset Statistics by Function 18 164 7 THIS PAGE IS LEFT BLANK INTENTIONALLY 8 INTRODUCTORY SECTION CITY OF ALBERTVILLE ALBERTVILLE, MINNESOTA FOR THE YEAR ENDED DECEMBER 31, 2024 9 THIS PAGE IS LEFT BLANK INTENTIONALLY 10 April 24, 2025 Honorable Mayor and Members of the City Council City of Albertville, Minnesota Minnesota statutes require the City to issue an annual report on its financial position and activity, prepared in accordance with generally accepted accounting principles (GAAP), and audited in accordance with generally accepted auditing standards by a firm of licensed certified public accountants, or the Office of the State Auditor. Pursuant to that requirement, we hereby issue the Annual Comprehensive Financial Report (ACFR) of the City of Albertville for the fiscal year ended December 31, 2024. This report consists of management’s representations concerning the finances of the City of Albertville. Management assumes full responsibility for the completeness and reliability of the information contained in this report, based upon a comprehensive framework of internal control standards that it has established for this purpose. Because the cost of internal control should not exceed anticipated benefits, the objective is to provide reasonable, rather than absolute assurance that the financial statements are free of any material misstatements. As management, we assert that, to the best of our knowledge and belief, this financial report is complete and reliable in all material respects. The City of Albertville’s financial statements have been audited by the public accounting firm of Abdo. The goal of the independent audit was to provide reasonable assurance that the financial statements of the City of Albertville for the fiscal year ended December 31, 2024, are free of any material misstatements. Included within this report, Abdo. has issued an unqualified opinion on the City of Albertville’s financial statements for the year ended December 31, 2024. Management’s Discussion and Analysis (MD&A) immediately follows the independent auditor’s report and provides a narrative introduction, overview, and analysis of the basic financial statements. This letter of transmittal is designed to complement the MD&A and should be read in conjunction with it. Profile of the City of Albertville The City of Albertville is located in the east central portion of Minnesota, approximately 35 miles northwest of the Twin Cities, and approximately halfway between the metropolitan areas of Minneapolis/St. Paul and St. Cloud. The City of Albertville is located in the northeastern portion of Wright County, along the Interstate 94 corridor. The City covers approximately 4.5 square miles. The current population is approximately 8,542. The City of Albertville operates under the council/administrator form of government. The governing body consists of the Mayor and four Council members, elected at large and on a non- partisan basis. The Mayor is elected to a two-year term and four Council Members are elected to a four-year term, with elections held in each even-numbered year. Not more than two Council member’s terms expire in any one year. 11 Albertville City Hall ● 5959 Main Avenue NE, PO Box 9 ● Albertville, MN 55301 ● (763) 497-3384 The Mayor and Council appoint a full-time City Administrator, who is responsible for overall supervision of City operations. The City Council is responsible for, among other things, passing ordinances, adopting the budget, appointing committees, hiring the City Administrator, other staff and appointing consultants. The City provides its residents and businesses with a full range of services, including fire protection, law enforcement, public works, building inspection, planning and code enforcement, parks/trail improvements and maintenance, curbside recycling and other general activities. The City contracts with the Wright County Sheriff’s Department for law enforcement. In addition, the City offers the following services to residents: water, sewer, storm drainage, and recycling, which are operated as enterprises. The City also partners with neighboring communities to provide library and senior center services. In addition, the governing body is financially accountable for the Economic Development Authority and therefore, these activities are included in the reporting entity. Relevant Financial Policies The annual budget serves as the foundation for the City’s financial planning and control. Developing the budget begins annually in June when the Finance Director prepares projected revenues and expenses for the next year’s draft budget. Upon review and revisions by the Finance Director and City Administrator, the draft budget is reviewed by the Department Heads. Department budget requests are compiled by the Finance Director and reviewed by both the Finance Director and City Administrator. Integral to the budget process are staff meetings to review the draft budget, which is then presented to the City Council. City Council and staff work on the budget over the course of two to three budget workshops. Following Council direction and public input, the preliminary budget is updated and brought back for City Council approval. City Council adopts the preliminary budget in September and the Final Budget is adopted in December of each year. 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 Water Board (the City’s water operations, operated in conjunction with the cities of St. Michael and Hanover). Economic Condition and Outlook Key factors affecting the City’s economic condition and financial outlook include: • Based on permit activity, the local economy is strong and continues to grow. A total of 652 building permits were issued in 2024 with a total valuation of $31,601,635. • The State of Minnesota continues its expansion of Interstate 94 through the City of Albertville. • The area school districts are highly desirable and driving new residential interest to the area. • Housing demand remains high and property values continue to rise. 12 Albertville City Hall ● 5959 Main Avenue NE, PO Box 9 ● Albertville, MN 55301 ● (763) 497-3384 Commercial, Industrial and Retail The City of Albertville’s commercial activity remains steady and it is a priority of the City to stimulate new commercial and industrial development. Currently, there are a number of commercial and industrial projects underway, including: • Medart Inc. • Albertville Plaza 3rd (commercial subdivision) • Costco (located in Otsego, but driving strong growth in Albertville) • Redevelopment of east side of the Albertville Premium Outlet Mall • New construction including: Si Senor Restaurant, Gravity Dance, Everbrook Daycare • Industrial expansions including: Mold Tech Inc., Border States, and Fraser Steel Major Initiatives Maintenance and preservation of the City infrastructure and facilities is a priority for the City. In 2024, the City completed multiple infrastructure improvements related to streets, utilities, trails and parks. Other major initiatives include: • The I-94 West Corridor Coalition • Main Avenue NE reconstruction project • Central Park improvements • WTP Expansion • WWTP Biosolids Dewatering Improvements Long-term Financial Planning The City of Albertville recognizes the importance of maintaining an appropriate level of fund balance. Sound fiscal management of Albertville’s general fund operation budget is made more secure by establishing City goals regarding the size and use of the annual general fund balances. This policy provides two goals and measures for determining the appropriate fund balance. The security factor must be met before the dependence factor can be applied. The City of Albertville will strive to meet these goals. 1. Security. Ensure that, at NO time during budget preparation, the amounts remaining in current year-end fund balance (defined as the prior year’s known fund balance amount less the amount designated for application to the current year budget) be allowed to be less than 35% of the next year’s planned budget for the General Fund as a minimum. As economic conditions warrant, an amount larger than this shall be maintained. This will be applied to cash flow, revenue reserves and insurance, and liability needs, or be available in the time of emergencies. It is intended for the current fund balance to meet or exceed the 35% minimum and maintain a level of 50% of next year’s expenditures. If the fund balance level falls below the 35% due to unexpected expenses, a replenishment plan will be developed. 2. Dependence. In building the next year’s budget, the percentage of total annual budget financing that can come from fund balances will not exceed 5% of the planned budget. Property Taxes To sustain or expand City services, while keeping property taxes stable, the Council has diligently strived to maintain a level tax rate. The property tax levy for the year divided by the city-wide total net tax capacity equals the tax rate. 13 Albertville City Hall ● 5959 Main Avenue NE, PO Box 9 ● Albertville, MN 55301 ● (763) 497-3384 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, 2024. Their audit was made in accordance with auditing standards generally accepted in the United States of America. The scope of the audit was sufficient to satisfy state and federal requirements. The auditors’ opinion on the City’s financial statements indicates that the auditors’ examination has disclosed no conditions which cause them to believe that the financial statements are not fairly stated, in all material respects. Certificate of Achievement The Government Finance Officers Association of the United States and Canada (GFOA) awarded a Certificate of Achievement for Excellence in Financial Reporting to the City for its ACFR for the fiscal year ended December 31, 2023. 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 the Certificate of Achievement’s requirements and we are again submitting it to the GFOA to determine its eligibility for another certificate. Acknowledgments I would like to commend Finance Director Lannes and the entire city staff for their hard work and dedication. I would like to recognize the CPA firm Abdo for their professional assistance. Finally, thank you to the Mayor and members of the City Council for your continued interest and support in planning and conducting the financial operations of the City in a very responsible and professional manner. Respectfully submitted, Adam Nafstad City Administrator/PWD/CE 14 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, 2023 Executive Director/CEO 15 City of Albertville Organizational Chart City Attorney City Planner Contract Services Sheriff's Department Family Youth Collaborative Assessor Senior Program Election Judges Finance Staff City Administrator/Public Works Director/City Engineer Parks and Recreation Committee STMA Arena Board Finance DirectorCity Clerk Streets and ParksSewer Utility Dept Public Works Committee Personnel Committee Joint Powers Water Board Fire Department Voters Committees City Council Fire Officers Planning Commission Economic Development Authority Consultants Admin. Asst. Clerk II (Building Tech) Building - Planning and Zoning Volunteer Firemen Fire ChiefUtility Employees Parks Employees STMA Ice Arena 16 City of Albertville, Minnesota Elected and Appointed Officials For the Year Ended December 31, 2024 Name Title Term Expires Jillian Hendrickson Mayor 12/31/26 Rob Olson Council Member 12/31/26 Aaron Cocking Council Member 12/31/28 Bob Zagorski Council Member 12/31/26 John Hayden Council Member 12/31/28 Name Title Adam Nafstad City Administrator Tina Lannes Finance Director ELECTED APPOINTED 17 THIS PAGE IS LEFT BLANK INTENTIONALLY 18 FINANCIAL SECTION CITY OF ALBERTVILLE ALBERTVILLE, MINNESOTA FOR THE YEAR ENDED DECEMBER 31, 2024 19 THIS PAGE IS LEFT BLANK INTENTIONALLY 20 INDEPENDENT AUDITOR’S REPORT Honorable Mayor and City Council City of Albertville, Minnesota Report on the Financial Statements Opinions We have audited the accompanying financial statements of governmental activities, the business-type activities, each major fund and the aggregate remaining fund information of the City of Albertville, Minnesota (the City), as of and for the year ended December 31, 2024, and the related notes to the financial statements, which collectively comprise the City’s basic financial statements as listed in the table of contents. In our opinion, the financial statements referred to above present fairly, in all material respects, the respective financial position of the governmental activities, the business-type activities, each major fund and the aggregate remaining fund information of the City as of December 31, 2024, and the respective changes in financial position and, where applicable, cash flows thereof and the respective budgetary comparison for the General fund for the year then ended in conformity with accounting principles generally accepted in the United States of America. Basis for Opinions We conducted our audit in accordance with auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States. Our responsibilities under those standards are further described in the Auditor’s Responsibilities for the Audit of the Financial Statements section of our report. We are required to be independent of the city and to meet our other ethical responsibilities, in accordance with the relevant ethical requirements relating to our audit. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinions. Management’s Responsibility for the Financial Statements Management is responsible for the preparation and fair presentation of these financial statements in accordance with accounting principles generally accepted in the United States of America; this includes the design, implementation, and maintenance of internal control relevant to the preparation and fair presentation of financial statements that are free from material misstatement, whether due to fraud or error. In preparing the financial statements, management is required to evaluate whether there are conditions or events, considered in the aggregate, that raise substantial doubt about the City’s ability to continue as a going concern for twelve months beyond the financial statement date, including any currently known information that may raise substantial doubt shortly thereafter. 21 Auditor’s Responsibilities for the Audit of the Financial Statements Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinions. Reasonable assurance is a high level of assurance but is not absolute assurance and therefore is not a guarantee that an audit conducted in accordance with generally accepted auditing standards and Government Auditing Standards will always detect a material misstatement when it exists. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control. Misstatements are considered material if there is a substantial likelihood that, individually or in the aggregate, they would influence the judgment made by a reasonable user based on the financial statements. In performing an audit in accordance with generally accepted auditing standards and Government Auditing Standards, we: • Exercise professional judgment and maintain professional skepticism throughout the audit. • Identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error and design and perform audit procedures responsive to those risks. Such procedures include examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements. • Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the City’s internal control. Accordingly, no such opinion is expressed. • Evaluate the appropriateness of accounting policies used and the reasonableness of significant accounting estimates made by management, as well as evaluate the overall presentation of the financial statements. • Conclude whether, in our judgment, there are conditions or events, considered in the aggregate, that raise substantial doubt about the City’s ability to continue as a going concern for a reasonable period of time. We are required to communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit, significant audit findings, and certain internal control-related matters that we identified during the audit. Change in Accounting Principle As described in Note 8 to the financial statements, the City adopted the provisions of Governmental Accounting Standard Board (GASB) Statement No. 101, Compensated Absences, for the year ended December 31, 2024. Adoption of the provisions of these statements results in significant change to the classifications of the components of the financial statements. Our opinion is not modified with respect to this matter. Other Matters Required Supplementary Information Accounting principles generally accepted in the United States of America require that the Management’s Discussion and Analysis starting on page 25 and the Schedules of Employer’s Share of the Net Pension Liability, the Schedules of Employer’s Contributions, the related note disclosures, the Schedule of Changes in Net Pension Liability (Asset) and Related Ratios starting on page 92 be presented to supplement the basic financial statements. Such information is the responsibility of management and, although not a part of the basic financial statements, is required by the Governmental Accounting Standards Board who considers it to be an essential part of financial reporting for placing the basic financial statements in an appropriate operational, economic, or historical context. We have applied certain limited procedures to the required supplementary information in accordance with auditing standards generally accepted in the United States of America, which consisted of inquiries of management about the methods of preparing the information and comparing the information for consistency with management’s responses to our inquiries, the basic financial statements, and other knowledge we obtained during our audit of the basic financial statements. We do not express an opinion or provide any assurance on the information because the limited procedures do not provide us with sufficient evidence to express an opinion or provide any assurance. 22 Supplementary Information Our audit was conducted for the purpose of forming an opinion on the financial statements that collectively comprise the City’s basic financial statements. The accompanying combining and individual fund financial statements and schedules 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 our opinion, the combining and individual fund financial statements and schedules are fairly stated, in all material respects, in relation to the basic financial statements as a whole. Other Information Management is responsible for the other information in the annual report. The other information comprises the introductory section and statistical section but does not include the basic financial statements and our auditor’s report thereon. Our opinions on the 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 24, 2025, on our consideration of the City’s internal control over financial reporting and on our tests of its compliance with certain provisions of laws, regulations, contracts, and grant agreements and other matters. The purpose of that report is solely to describe the scope of our testing of internal control over financial reporting and compliance and the results of that testing, and not to provide an opinion on the effectiveness of the City’s internal control over financial reporting or on compliance. That report is an integral part of an audit performed in accordance with Government Auditing Standards in considering the City’s internal control over financial reporting and compliance. Abdo Minneapolis, Minnesota April 24, 2025 23 THIS PAGE IS LEFT BLANK INTENTIONALLY 24 Management’s Discussion and Analysis As management of the City of Albertville, Minnesota, (the City), we offer readers of the City’s financial statements this narrative overview and analysis of the financial activities of the City for the fiscal year ended December 31, 2024. 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 may be used to meet the City’s ongoing obligations to citizens and creditors. • The City’s total net position 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; more specifically, property taxes levied for general purposes which grew as a result of a 19% increase in net tax capacity, and sales from services due to a 2% average increase plus restructuring the fee schedule in utility rates for business-type activities. With the business-type activities all the rates were evaluated and some were restructured. In addition, there were a few new homes built and several unplanned commercial/industrial buildings added. • 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. • Unassigned fund balance in the general fund as shown in the financial analysis of the City’s funds section increased from the prior year due to revenues in excess of budget due to additional permit revenue of commercial properties and new fees implemented. • The City’s total bonded debt decreased during the current fiscal year. The decrease was a result of scheduled debt service payments as shown on the outstanding debt table. 25 Overview of the Financial Statements This discussion and analysis is intended to serve as an introduction to the City’s basic financial statements. The City’s basic financial statements comprise three components: 1) government-wide financial statements, 2) fund financial statements, and 3) notes to the financial statements. This report also contains other supplemental information in addition to the basic financial statements themselves. The financial statements also include notes that explain some of the information in the financial statements and provide more detailed data. The statements are followed by a section of combining and individual fund financial statements and schedules which further explain and support the information in the financial statements. Figure 1 shows how the required parts of this annual report are arranged and relate to one another. In addition to these required elements, we have included a section with combining and individual fund financial statements and schedules that provide details about non- major governmental funds, which are added together and presented in single columns in the basic financial statements. Figure 1 Required Components of the City’s Annual Financial Report Management's Discussion and Analysis Basic Financial Statements Required Supplementary Information Government- wide Financial Statements Fund Financial Statements Notes to the Financial Statements Summar Detail 26 Figure 2 summarizes the major features of the City’s financial statements, including the portion of the City government they cover and the types of information they contain. The remainder of this overview section of management’s discussion and analysis explains the structure and contents of each of the statements. Figure 2 Major Features of the Government-wide and Fund Financial Statements Fund Financial Statements Government-wide Statements Governmental Funds Proprietary Funds Scope Entire City government (except fiduciary funds) and the City’s component units The activities of the City that are not proprietary or fiduciary, such as police, fire and parks Activities the City operates similar to private businesses, such as the water and sewer system Required financial statements • Statement of Net Position • Statement of Activities • Balance Sheet • Statement of Revenues, Expenditures, and Changes in Fund Balances • Statements of Net Position • Statements of Revenues, Expenses and Changes in Net Position • Statements of Cash Flows Accounting basis and measurement focus Accrual accounting and economic resources focus Modified accrual accounting and current financial resources focus Accrual accounting and economic resources focus Type of asset/liability information All assets and liabilities, both financial and capital, and short-term and long- term Only assets expected to be used up and liabilities that come due during the year or soon thereafter; no capital assets included All assets and liabilities, both financial and capital, and short-term and long- term Type of deferred outflows/inflows of resources information All deferred outflows/inflows of resources, regardless of when cash is received or paid Only deferred outflows of resources expected to be used up and deferred inflows of resources that come due during the year or soon thereafter; no capital assets included All deferred outflows/inflows of resources, regardless of when cash is received or paid Type of in flow/out flow information All revenues and expenses during year, regardless of when cash is received or paid Revenues for which cash is received during or soon after the end of the year; expenditures when goods or services have been received and payment is due during the year or soon thereafter All revenues and expenses during the year, regardless of when cash is received or paid Government-wide Financial Statements. The Government-wide financial statements are designed to provide readers with a broad overview of the City’s finances, in a manner similar to a private-sector business. The statement of net position presents information on all of the City’s assets and deferred outflows of resources, and liabilities and deferred inflows of resources, with the difference reported as net position. 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 statement of activities presents information showing how the City’s net position changed during the most recent fiscal year. All changes in net position are reported as soon as the underlying event giving rise to the change occurs, regardless of the timing of related cash flows. Thus, revenues and expenses are reported in this statement for some items that will only result in cash flows in future fiscal periods (e.g., uncollected taxes and earned but unused vacation leave). 27 Both of the government-wide financial statements distinguish functions of the City that are principally supported by taxes and intergovernmental revenue (governmental activities) from other functions that are intended to recover all or a significant portion of their costs through user fees and charges (business-type activities). The governmental activities of the City include general government, public safety, public works, culture and recreation, economic development and interest on long-term debt. The business-type activities of the City include sewer, water, storm water and recycling. The government-wide financial statements start on page 39 of this report. Fund Financial Statements. A fund is a grouping of related accounts that is used to maintain control over resources that have been segregated for specific activities or objectives. The City, like other state and local governments, uses fund accounting to ensure and demonstrate compliance with finance-related legal requirements. All of the funds of the City can be divided into three categories: governmental funds, proprietary funds and fiduciary funds. Governmental Funds. Governmental funds are used to account for essentially the same functions reported as governmental activities in the government-wide financial statements. However, unlike the government-wide financial statements, governmental fund financial statements focus on near-term inflows and outflows of spendable resources, as well as on balances of spendable resources available at the end of the fiscal year. Such information may be useful in evaluating a government’s near-term financing requirements. Because the focus of governmental funds is narrower than that of the government-wide financial statements, it is useful to compare the information presented for governmental funds with similar information presented for governmental activities in the government-wide financial statements. By doing so, readers may better understand the long-term impact by the government’s near-term financing decisions. Both the governmental fund balance sheet and the governmental fund statement of revenues, expenditures and changes in fund balances provide a reconciliation to facilitate this comparison between governmental funds and governmental activities. The City maintains 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 combining statements or schedules elsewhere in this report. The City adopts an annual appropriated budget for its General fund. A budgetary comparison statement has been provided for the General fund to demonstrate compliance with this budget. The basic governmental fund financial statements start on page 44 of this report. Proprietary Funds. The City maintains one type of proprietary fund. Enterprise funds are used to report the same functions presented as business-type activities in the government-wide financial statements. The City uses enterprise funds to account for its sewer, water, storm water and recycling operations. Proprietary funds provide the same type of information as the government-wide financial statements, only in more detail. The proprietary fund financial statements provide separate information for each of the enterprise funds. The basic proprietary fund financial statements start on page 50 of this report. Fiduciary Funds. Fiduciary funds are used to account for resources held for the benefit of parties outside the City. Fiduciary funds are not reflected in the government-wide financial statements because the resources of those funds are not available to support the City’s own programs. The accounting used for fiduciary funds is much like that used for proprietary funds. The basic fiduciary fund financial statements are on page 55 of this report. Notes to the Financial Statements. The notes provide additional information that is essential to a full understanding of the data provided in the government-wide and fund financial statements. The notes to the financial statements start on page 59 of this report. 28 Supplementary Information. In addition to the basic financial statements and accompanying notes, this report also presents certain required supplementary information concerning the City’s progress in funding its obligation to provide pension and other post-employment benefits to its employees. Required supplementary information can be found starting on page 92 of this report. 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 10 4 of this report. Government-wide Financial Analysis As noted earlier, net position may serve over time as a useful indicator of a government’s financial position. In the case of the City, assets and deferred outflows of resources exceeded liabilities the close of the most recent fiscal year. By far, the largest portion of the City’s net position reflects its net investment in capital assets (e.g., land, buildings, machinery and equipment), less any related debt used to acquire those ass ets that is still outstanding. The City uses these capital assets to provide services to citizens; consequently, these assets are not available for future spending. Although the City’s investment in its capital assets is reported net of related debt, it should be noted that the resources needed to repay this debt must be provided from other sources, since the capital assets themselves cannot be used to liquidate these liabilities. City of Albertville’s Summary of Net Position Increase Increase 2024 2023 (Decrease)2024 2023 (Decrease) Current and Other Assets 16,761,360$ 16,484,333$ 277,027$ 17,749,235$ 19,879,502$ (2,130,267)$ Capital Assets 23,504,525 22,766,923 737,602 26,820,444 23,756,332 3,064,112 Total Assets 40,265,885 39,251,256 1,014,629 44,569,679 43,635,834 933,845 Deferred Outflows of Resources 625,853 787,411 (161,558) 70,355 103,186 (32,831) Long-term Liabilities Outstanding 2,744,064 3,499,110 (755,046) 15,110,256 15,716,544 (606,288) Other Liabilities 411,133 794,789 (383,656) 405,675 829,188 (423,513) Total Liabilities 3,155,197 4,293,899 (1,138,702) 15,515,931 16,545,732 (1,029,801) Deferred Inflows of Resources 632,047 551,802 80,245 169,628 118,766 50,862 Net Position Net investment in capital assets 21,559,851 20,273,389 1,286,462 13,952,765 11,419,846 2,532,919 Restricted 5,877,307 5,714,233 163,074 - - - Unrestricted 9,667,336 9,205,344 461,992 15,001,710 15,654,676 (652,966) Total Net Position 37,104,494$ 35,192,966$ 1,911,528$ 28,954,475$ 27,074,522$ 1,879,953$ Governmental Activities Business-type Activities Net Position as a Percent of Total Net investment in capital assets 58.1 % 57.6 %48.2 42.2 Restricted 15.8 16.2 - - Unrestricted 26.1 26.2 51.8 57.8 100.0 % 100.0 %100.0 100.0 %% %% 29 An additional portion of the City’s net position represents resources that are subject to external restrictions on how they may be used. The remaining balance of unrestricted net position may be used to meet the City’s ongoing obligations to citizens and creditors. At the end of the current fiscal year, the City is able to report positive balances in all three categories of net position, both for the City as a whole, as well as for its separate governmental and business -type activities. Governmental Activities. Governmental activities increased the City’s net position. Significant changes from the prior year can be attributed to the increase in relation to taxes and charges for services. Business -type activities increased the City’s net position mainly due to capital grants and contributions for the waste water treatment facility. The City of Albertville is finishing up a several million-dollar improvement for the wastewater facility. The project was to move toward dewatering and away from use of reedbeds required by the MPCA. This was a multi-year project expected to finish Spring 2025. For this project there were grants, contributions and bonding to fund the project. City of Albertville’s Changes in Net Position Increase Increase 2024 2023 (Decrease)2024 2023 (Decrease) Revenues Program Revenues Charges for services 1,766,484$ 1,258,084$ 508,400$ 2,149,427$ 1,994,092$ 155,335$ Operating grants and contributions 793,051 1,071,298 (278,247) 102,826 18,581 84,245 Capital grants and contributions 78,896 11,930 66,966 1,096,687 2,426,134 (1,329,447) General Revenues Taxes Property taxes 5,195,799 4,507,776 688,023 332,528 220,624 111,904 Tax increments 627,846 462,983 164,863 - - - Franchise fees 336,872 325,250 11,622 - - - Grants and contributions not restricted to specific programs 259,035 305,373 (46,338) 129,624 111,961 17,663 Gain on sale of capital assets 10,856 30,000 (19,144) - - - Unrestricted investment earnings 539,135 564,901 (25,766) 769,495 808,086 (38,591) Total Revenues 9,607,974 8,537,595 1,070,379 4,580,587 5,579,478 (998,891) Expenses General government 1,123,145 1,257,890 (134,745) - - - Public safety 2,743,870 2,242,841 501,029 - - - Public works 2,261,304 2,245,612 15,692 - - - Culture and recreation 1,019,553 1,147,360 (127,807) - - - Economic development 467,423 265,896 201,527 - - - Interest on long-term debt 81,151 95,580 (14,429) - - - Sewer - - - 1,700,097 1,692,252 7,845 Water - - - 501,642 526,850 (25,208) Storm water - - - 334,065 297,395 36,670 Recycling - - - 164,830 157,099 7,731 Total Expenses 7,696,446 7,255,179 441,267 2,700,634 2,673,596 27,038 Change in Net Position 1,911,528 1,282,416 629,112 1,879,953 2,905,882 (1,025,929) Net Position, January 1 35,192,966 33,910,550 1,282,416 27,074,522 24,168,640 2,905,882 Net Position, December 31 37,104,494$ 35,192,966$ 1,911,528$ 28,954,475$ 27,074,522$ 1,879,953$ Governmental Activities Business-type Activities 30 The following graph depicts various governmental activities and shows the revenue and expenses directly related to those activities. Expenses and Program Revenues - Governmental Activities $- $500,000 $1,000,000 $1,500,000 $2,000,000 $2,500,000 $3,000,000 General Government Public Safety Public Works Culture and Recreation Economic Development Interest on Long- term Debt Expenses Program Revenues Revenues by Source - Governmental Activities For the most part, increases in expenses closely paralleled inflation and growth in the demand for services. 18.4%, Charges for Services 8.3%, Operating Grants and Contributions 0.8%, Capital Grants and Contributions 64.1%, Taxes 2.7%, Grants and Contributions Unrestricted 0.1%, Miscellaneous 5.6% Unrestricted Investment … 31 Business-type Activities. Business-type activities increased the City’s net position mainly due to capital grants and contributions related to the waste water treatment facility. Expenses and Program Revenues - Business-type Activities $- $500,000 $1,000,000 $1,500,000 $2,000,000 $2,500,000 $3,000,000 Sewer Water Storm Water Recycling Expenses Program Revenues Revenues by Source - Business-type Activities 47.0%, Charges for Services 2.2%, Operating Grants and Contributions, 23.9%, Capital Grants and Contributions 7.3%, Taxes2.8%, Grants and Contributions Unrestricted 16.8%, Investment Earnings 32 Financial Analysis of the Government’s Funds As noted earlier, the City uses fund accounting to ensure and demonstrate compliance with finance-related legal requirements. Governmental Funds: The focus of the City’s governmental funds is to provide information on near-term inflows, outflows and balances of spendable resources. Such information is useful in assessing the City’s financing requirements. In particular, unassigned fund balance may serve as a useful measure of a government’s net resources available for spending at the end of the fiscal year. Capital Other Debt Outlay Governmental Prior Year Increase/ General Service Reserve Funds Total Total (Decrease) Fund Balances Nonspendable 191,320$ -$ -$ -$ 191,320$ 187,926$ 3,394$ Restricted - 2,766,556 349,995 1,616,190 4,732,741 4,396,743 335,998 Committed - - - 167,272 167,272 159,322 7,950 Assigned - - 5,986,659 - 5,986,659 6,187,137 (200,478) Unassigned 2,647,909 - - (878,875) 1,769,034 1,555,555 213,479 2,839,229$ 2,766,556$ 6,336,654$ 904,587$ 12,847,026$ 12,486,683$ 360,343$ The General fund is the chief operating fund of the City. At the end of the current year, the fund balance of the General fund is shown in the table above. As a measure of the General fund’s liquidity, it may be useful to compare unassigned 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 percentage of total expenditures. Current Year Prior Year Increase/ Ending Balance Ending Balance (Decrease) General Fund Fund Balances Nonspendable 191,320$ 177,926$ 13,394$ Unassigned 2,647,909 2,554,745 93,164 Total Fund Balance 2,839,229$ 2,732,671$ 106,558$ General Fund expenditures 5,140,733$ 4,458,573$ Unassigned as a percent of expenditures 51.5%57.3% Total Fund Balance as a percent of expenditures 55.2%61.3% The fund balance of the City’s General fund increased during the current fiscal year as shown in the table above. The increase is mainly due to interest earnings increasing and building permit revenue in excess of the budget. The City of Albertville had unexpected commercial projects including a major distribution center, restaurant plus an industrial building project for the year. In addition added a gas franchise fee. 33 Other major governmental fund analysis is shown below: December 31,December 31,Increase 2024 2023 (Decrease) Debt Service Fund 2,766,556$ 2,783,933$ (17,377)$ The Debt Service fund decrease in fund balance during the year was due to scheduled principal and interest payments made on bonds during the year. Capital Outlay Reserve 6,336,654$ 6,547,132$ (210,478)$ The Capital Outlay Reserve decrease in fund balance was mainly due to anticipated project expenditures during the year Proprietary Funds: The City’s proprietary funds provide the same type of information found in the government-wide financial statements, but in more detail. Ending Ending Net Position Net Position Increase/ 2024 2023 (Decrease) Sewer 23,045,706$ 21,463,137$ 1,582,569$ The increase is primarily attributed to the capital contributions during the year. Water 3,569,790$ 3,261,663$ 308,127$ The increase is primarily attributed to interest earnings, intergovermental revenue and capital contributions. General Fund Budgetary Highlights Final Budgeted Actual Variance with Amounts Amounts Final Budget Revenues 4,485,385$ 5,247,291$ 761,906$ Expenditures 4,485,385 5,140,733 (655,348) Net Change in Fund Balances - 106,558 106,558 Fund Balances, January 1 2,732,671 2,732,671 - Fund Balances, December 31 2,732,671$ 2,839,229$ 106,558$ 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 intergovernmental revenue such as the Fire Contract providing service to a portion of a neighboring city and investment earnings. Also, with commercial and industrial permits allowed the revenue to go over what was budgeted by approximately $114,000. In addition, the City implemented a gas franchise fee which revenues of $136,000 was collected. Expenditures also came in over the final budget due to unfavorable variances related to general government and public safety expenditures. There was a large increase in our Sherrif’s contract in addition to several large expenses for the upcoming Main Ave reconstruction project and Central Park Improvements. The projects are going to start in 2025 once bids are approved and contracts awarded of which will take 2 years for completion. The pre-construction costs such as planning and engineering are expenses exceeding the budgeted engineering by approximately $365,000. Capital Asset and Debt Administration Capital Assets: The City’s investment in capital assets for its governmental and business-type activities as of 34 December 31, 2024, is shown below in capital asset table (net of accumulated depreciation). This investment in capital assets includes land, structures, improvements, machinery and equipment, vehicles, roads, highways and bridges. The total increase in the City’s investment in capital assets for the current fiscal year for governmental and business-type activities is due to: •Central Park Improvements •50th Street Improvements •58th Street Improvements •2024 Street Improvements •O’Donnel Property •Loewen Property •Freightliner Pumper Fire Truck Additional information on the City’s capital assets can be found in Note 3B starting on page 71 of this report. City of Albertville’s Capital Assets (Net of Depreciation) Increase Increase Increase 2024 2023 (Decrease)2024 2023 (Decrease)2024 2023 (Decrease) Land 4,490,242$ 3,983,292$ 506,950$ 351,834$ 351,834$ -$ 4,842,076$ 4,335,126$ 506,950$ Construction in Progress 1,254,646 1,213,773 40,873 10,591,635 7,138,400 3,453,235 11,846,281 8,352,173 3,494,108 Buildings 2,458,078 2,577,840 (119,762) 2,488,188 2,606,210 (118,022) 4,946,266 5,184,050 (237,784) Infrastructure 11,312,186 11,057,420 254,766 13,066,058 13,528,585 (462,527) 24,378,244 24,586,005 (207,761) Land Improvements 1,604,630 1,736,569 (131,939) - - - 1,604,630 1,736,569 (131,939) Machinery and Equipment 871,332 877,258 (5,926) 198,121 45,829 152,292 1,069,453 923,087 146,366 Vehicles 1,513,411 1,320,771 192,640 124,608 85,474 39,134 1,638,019 1,406,245 231,774 Total 23,504,525$ 22,766,923$ 737,602$ 26,820,444$ 23,756,332$ 3,064,112$ 50,324,969$ 46,523,255$ 3,801,714$ Percent increase (decrease)3.2%12.9%8.2% Governmental Activities Business-type Activities Total 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 these bonds have their own revenue streams, they are backed by the full faith and credit of the City. City of Albertville’s Outstanding Debt Increase Increase 2024 2023 (Decrease)2024 2023 (Decrease) General Obligation Special Assessment Bonds 1,944,674$ 2,532,092$ (587,418)$ -$ -$ -$ G.O. Revenue Bonds - - - 14,691,000 15,263,991 (572,991) Total 1,944,674$ 2,532,092$ (587,418)$ 14,691,000$ 15,263,991$ (572,991)$ Percent increase (decrease)-23.2%-3.8% Governmental Activities Business-type Activities The City’s total bonded debt decreased during the current fiscal year. The decrease was a result of scheduled debt service payments. Minnesota statutes limit the amount of net general obligation debt a City may issue to 3 percent of the market value of taxable property within the City. Net debt is debt payable solely from ad valorem taxes. The City’s applicable debt does not exceed the limit set forth in statute. 35 Additional information on the City’s long-term debt can be found in Note 3D starting on page 73 of this report. Economic Factors and Next Year’s Budgets and Rates 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 metropolitan areas, and strong residential markets in neighboring cities will continue to promote Albertville’s commercial growth. The city had 6 commercial businesses added in 2024 plus 1 industrial project. Budgeted capital projects are generally targeted towards maintenance and preservation of the City’s infrastructure. The City of Albertville budgets for future projects such as roads, equipment, other capital purchases rather than bond, certificate or loan of which them amounts individually doesn’t seem fiscal responsible to bond for. The City follows a five year capital project plan which is reviewed and updated annually. Budgeted contract services are reviewed and adjusted annually. Contract services for the city are used for items where it wouldn’t be fiscally responsible to have full-time staff and infrastructure. The largest contracted service is with the Sherriff’s department. State and/or Federal funds received due to the COVID 19 pandemic are expected to be used for economic development and/or capital improvements. The City has used the funds for capital purchases such as water meters, equipment, lift station upgrades, generators and vehicles. The $823. 878 has all been obligated. The city has purchased and received $695,875 with the remaining obligatory amount of $128,003 for the generators expected delivery in 2025. Requests for Information This financial report is designed to provide a general overview of the City’s finances for all those with an interest in the City’s finances. Questions concerning any of the information provided in this report or requests for additional financial information should be addressed to the Finance Director, City of Albertville, 5959 Main Avenue, Albertville, Minnesota 55301. 36 GOVERNMENT-WIDE FINANCIAL STATEMENTS CITY OF ALBERTVILLE ALBERTVILLE, MINNESOTA FOR THE YEAR ENDED DECEMBER 31, 2024 37 THIS PAGE IS LEFT BLANK INTENTIONALLY 38 City of Albertville, Minnesota Statement of Net Position December 31, 2024 Governmental Business-type Activities Activities Total Assets Cash and temporary investments 12,275,852$ 17,328,811$ 29,604,663$ Receivables Interest 109,318 - 109,318 Taxes 65,701 - 65,701 Accounts 68,738 230,228 298,966 Notes - due within one year 73,148 - 73,148 Notes - due in more than one year 512,038 - 512,038 Special assessments 508,245 99,139 607,384 Internal balances (36,000) 36,000 - Due from other governments 1,965,722 17,456 1,983,178 Prepaid items 140,320 37,601 177,921 Equity interest in joint venture 269,786 - 269,786 Net pension asset 156,539 - 156,539 Land held for resale 651,953 - 651,953 Capital assets Land and construction in progress 5,744,888 10,943,469 16,688,357 Depreciable assets, net of accumulated depreciation 17,759,637 15,876,975 33,636,612 Total Assets 40,265,885 44,569,679 84,835,564 Deferred Outflows of Resources Deferred pension resources 625,853 70,355 696,208 Liabilities Accounts and contracts payable 125,513 123,422 248,935 Escrows payable 101,801 - 101,801 Due to other governments 5,421 63,090 68,511 Accrued interest payable 9,708 208,900 218,608 Accrued salaries payable 12,953 7,675 20,628 Unearned revenue 155,737 2,588 158,325 Noncurrent liabilities Due within one year Long-term liabilities 711,437 884,564 1,596,001 Due in more than one year Long-term liabilities 1,391,153 13,959,188 15,350,341 Net pension liability 641,474 266,504 907,978 Total Liabilities 3,155,197 15,515,931 18,671,128 Deferred Inflows of Resources Deferred pension resources 632,047 169,628 801,675 Net Position Net investment in capital assets 21,559,851 13,952,765 35,512,616 Restricted for Net pension asset 156,539 - 156,539 Public safety - charitable gambline 259,490 - 259,490 Debt service 3,754,583 - 3,754,583 Park improvements 1,004,580 - 1,004,580 Tax increment 352,120 - 352,120 Public safety aid 349,995 - 349,995 Unrestricted 9,667,336 15,001,710 24,669,046 Total Net Position 37,104,494$ 28,954,475$ 66,058,969$ The notes to the financial statements are an integral part of this statement. 39 City of Albertville, Minnesota Statement of Activities For the Year Ended December 31, 2024 Operating Capital Grants Charges for Grants and and Expenses Services Contributions Contributions Governmental Activities General government 1,123,145$ 506,556$ 98,903$ 69,646$ Public safety 2,743,870 616,941 229,386 - Public works 2,261,304 4,250 437,045 4,150 Culture and recreation 1,019,553 638,737 17,774 5,100 Economic development 467,423 - 9,943 - Interest on long-term debt 81,151 - - - Total Governmental Activities 7,696,446 1,766,484 793,051 78,896 Business-type Activities Sewer 1,700,097 1,181,900 6,884 1,027,465 Water 501,642 539,850 87,437 69,222 Storm water 334,065 280,350 - - Recycling 164,830 147,327 8,505 - Total Business-type Activities 2,700,634 2,149,427 102,826 1,096,687 Total 10,397,080$ 3,915,911$ 895,877$ 1,175,583$ 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 Program Revenues Functions/Programs The notes to the financial statements are an integral part of this statement. 40 Governmental Business-type Activities Activities Total (448,040)$ -$ (448,040)$ (1,897,543) - (1,897,543) (1,815,859) - (1,815,859) (357,942) - (357,942) (457,480) - (457,480) (81,151) - (81,151) (5,058,015) - (5,058,015) - 516,152 516,152 - 194,867 194,867 - (53,715) (53,715) - (8,998) (8,998) - 648,306 648,306 (5,058,015) 648,306 (4,409,709) 4,831,192 332,528 5,163,720 364,607 - 364,607 627,846 - 627,846 336,872 - 336,872 259,035 129,624 388,659 539,135 769,495 1,308,630 10,856 - 10,856 6,969,543 1,231,647 8,201,190 1,911,528 1,879,953 3,791,481 35,192,966 27,074,522 62,267,488 37,104,494$ 28,954,475$ 66,058,969$ and Changes in Net Position Net (Expenses) Revenues The notes to the financial statements are an integral part of this statement. 41 THIS PAGE IS LEFT BLANK INTENTIONALLY 42 FUND FINANCIAL STATEMENTS CITY OF ALBERTVILLE ALBERTVILLE, MINNESOTA FOR THE YEAR ENDED DECEMBER 31, 2024 43 Capital Other Total Debt Outlay Governmental Governmental General Service Reserve Funds Funds Assets Cash and temporary investments 2,683,314$ 1,326,311$ 6,348,232$ 1,917,995$ 12,275,852$ Receivables Taxes 65,701 - - - 65,701 Accounts 68,738 - - - 68,738 Special assessments 94,406 412,547 1,292 - 508,245 Interest 106,197 3,121 - - 109,318 Notes - 585,186 - - 585,186 Advances to other funds - 836,173 12,308 - 848,481 Due from other governments - - 1,965,722 - 1,965,722 Prepaid items 140,320 - - - 140,320 Land held for resale 51,000 600,953 - - 651,953 Total Assets 3,209,676$ 3,764,291$ 8,327,554$ 1,917,995$ 17,219,516$ Liabilities Accounts and contracts payable 100,335$ -$ 25,178$ -$ 125,513$ Escrows payable 101,801 - - - 101,801 Advances from other funds - - - 884,481 884,481 Due to other governments 5,421 - - - 5,421 Accrued salaries payable 12,953 - - - 12,953 Unearned revenue 26,810 - - 128,927 155,737 Total Liabilities 247,320 - 25,178 1,013,408 1,285,906 Deferred Inflows of Resources Unavailable revenue - property taxes 28,721 - - - 28,721 Unavailable revenue - special assessments 94,406 412,547 - - 506,953 Unavailable revenue - notes/intergovernmental - 585,188 1,965,722 - 2,550,910 Total Deferred Inflows of Resources 123,127 997,735 1,965,722 - 3,086,584 Fund Balances Nonspendable 191,320 - - - 191,320 Restricted - 2,766,556 349,995 1,616,190 4,732,741 Committed - - - 167,272 167,272 Assigned - - 5,986,659 - 5,986,659 Unassigned 2,647,909 - - (878,875) 1,769,034 Total Fund Balances 2,839,229 2,766,556 6,336,654 904,587 12,847,026 Total Liabilities, Deferred Inflows of Resources and Fund Balances 3,209,676$ 3,764,291$ 8,327,554$ 1,917,995$ 17,219,516$ City of Albertville, Minnesota Balance Sheet Governmental Funds December 31, 2024 The notes to the financial statements are an integral part of this statement. 44 City of Albertville, Minnesota Reconciliation of the Balance Sheet to the Statement of Net Position December 31, 2024 Amounts reported for the governmental activities in the statement of net position are different because Total Fund Balances - Governmental 12,847,026$ Governmental funds do not report an asset for equity interest in the joint venture 269,786 Capital assets used in governmental activities are not financial resources and therefore are not reported as assets in governmental funds. Cost of capital assets 55,897,428 Less: accumulated depreciation (32,392,903) 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 (157,916) Bond principal payable (1,944,674) Net pension liability (641,474) Some receivables are not available soon enough to pay for the current period's expenditures, and therefore are deferred in the funds. Special assessments 506,953 Taxes 28,721 Notes/intergovernmental 2,550,910 Governmental funds do not report long-term amounts related to pension. Deferred outflows of pension resources 625,853 Deferred inflows of pension resources (632,047) Net pension asset 156,539 Governmental funds do not report a liability for accrued interest until due and payable.(9,708) Total Net Position - Governmental Activities 37,104,494$ The notes to the financial statements are an integral part of this statement. 45 Capital Other Total Debt Outlay Governmental Governmental General Service Reserve Funds Funds Revenues Taxes 3,095,204$ 417,302$ 2,028,138$ 627,846$ 6,168,490$ Licenses and permits 358,946 - - - 358,946 Intergovernmental 499,956 - 3,496 2,224 505,676 Charges for services 1,059,050 - - - 1,059,050 Fines and forfeitures 25,417 - - - 25,417 Special assessments 13,805 43,627 20,107 - 77,539 Investment earnings 120,460 75,037 285,163 58,475 539,135 Miscellaneous 74,453 73,148 73,180 259,490 480,271 Total Revenues 5,247,291 609,114 2,410,084 948,035 9,214,524 Expenditures Current General government 1,445,974 - - 1,200 1,447,174 Public safety 2,404,848 - - - 2,404,848 Public works 488,408 3,948 - - 492,356 Culture and recreation 793,503 - - - 793,503 Economic development 8,000 - - 448,586 456,586 Capital outlay General government - - 16,158 - 16,158 Public safety - - 529,350 - 529,350 Public works - - 1,855,760 - 1,855,760 Culture and recreation - - 206,941 7,353 214,294 Economic development - - 10,837 - 10,837 Debt service Principal - 581,000 - - 581,000 Interest and other - 41,543 - 10,772 52,315 Total Expenditures 5,140,733 626,491 2,619,046 467,911 8,854,181 Excess (Deficiency) of Revenues Over (Under) Expenditures 106,558 (17,377) (208,962) 480,124 360,343 Other Financing Sources (Uses) Transfers in - - - 1,516 1,516 Transfers out - - (1,516) - (1,516) Total Other Financing Sources (Uses)- - (1,516) 1,516 - Net Change in Fund Balances 106,558 (17,377) (210,478) 481,640 360,343 Fund Balances, January 1 2,732,671 2,783,933 6,547,132 422,947 12,486,683 Fund Balances, December 31 2,839,229$ 2,766,556$ 6,336,654$ 904,587$ 12,847,026$ City of Albertville, Minnesota Statement of Revenues, Expenditures and Changes in Fund Balances Governmental Funds For the Year Ended December 31, 2024 The notes to the financial statements are an integral part of this statement. 46 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, 2024 Amounts reported for governmental activities in the statement of activities are different because Total Change Is Fund Balances 360,343$ Governmental funds do not report income or loss in a joint venture.19,339 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 2,356,841 Depreciation expense (1,619,239) 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 581,000 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.2,985 Long-term pension activity is not reported in governmental funds. Pension expense (73,102) Pension revenue 27,018 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 (58,929) 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 6,200 Taxes (7,973) Intergovernmental 348,866 Change in Net Position - Governmental Activities 1,911,528$ The notes to the financial statements are an integral part of this statement. 47 THIS PAGE IS LEFT BLANK INTENTIONALLY 48 City of Albertville, Minnesota Statement of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual General Fund For the Year Ended December 31, 2024 General Actual Variance with Original Final Amounts Final Budget Revenues Taxes 3,124,776$ 3,124,776$ 3,095,204$ (29,572)$ Licenses and permits 263,000 263,000 358,946 95,946 Intergovernmental 318,393 318,393 499,956 181,563 Charges for services 759,216 759,216 1,059,050 299,834 Fines and forfeitures - - 25,417 25,417 Special assessments - - 13,805 13,805 Investment earnings - - 120,460 120,460 Miscellaneous 20,000 20,000 74,453 54,453 Total Revenues 4,485,385 4,485,385 5,247,291 761,906 Expenditures Current General government 998,850 998,850 1,445,974 (447,124) Public safety 2,243,683 2,243,683 2,404,848 (161,165) Public works 605,610 605,610 488,408 117,202 Culture and recreation 624,242 624,242 793,503 (169,261) Economic development 13,000 13,000 8,000 5,000 Total Expenditures 4,485,385 4,485,385 5,140,733 (655,348) Net Change in Fund Balances - - 106,558 106,558 Fund Balances, January 1 2,732,671 2,732,671 2,732,671 - Fund Balances, December 31 2,732,671$ 2,732,671$ 2,839,229$ 106,558$ Budgeted Amounts The notes to the financial statements are an integral part of this statement. 49 Sewer Water Nonmajor Total Assets Current Assets Cash and temporary investments 13,256,754$ 2,857,218$ 1,214,839$ 17,328,811$ Receivables Accounts 100,470 105,314 24,444 230,228 Delinquent special assessments - - 36 36 Special assessments, current portion 15,340 15,340 16 30,696 Due from other governments 14,868 - 2,588 17,456 Prepaid items 24,910 10,386 2,305 37,601 Total Current Assets 13,412,342 2,988,258 1,244,228 17,644,828 Noncurrent Assets Special assessments, net of current portion 45,308 23,099 - 68,407 Advances to other funds - - 36,000 36,000 45,308 23,099 36,000 104,407 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 309,738 261,518 - 571,256 Vehicles 289,528 216,921 69,177 575,626 Construction in progress 10,591,635 - - 10,591,635 Less: Accumulated depreciation (8,388,637) (954,629) (533,023) (9,876,289) Net Capital Assets 24,690,731 938,150 1,191,563 26,820,444 Total Noncurrent Assets 24,736,039 961,249 1,227,563 26,924,851 Total Assets 38,148,381 3,949,507 2,471,791 44,569,679 Deferred Outflows of Resources Deferred pension resources 39,199 14,241 16,915 70,355 City of Albertville, Minnesota Statement of Net Position Proprietary Funds December 31, 2024 Business-type Activities - Enterprise Funds The notes to the financial statements are an integral part of this statement. 50 Sewer Water Nonmajor Total Liabilities Current Liabilities Accounts and contracts payable 62,239$ 58,098$ 3,085$ 123,422$ Due to other governments 47 63,043 - 63,090 Accrued interest payable 208,579 321 - 208,900 Accrued salaries payable 2,319 3,424 1,932 7,675 Unearned revenue - - 2,588 2,588 Compensated absences payable, current portion 36,381 49,176 29,007 114,564 Bonds payable, current portion 759,600 10,400 - 770,000 Total Current Liabilities 1,069,165 184,462 36,612 1,290,239 Noncurrent Liabilities Compensated absences payable 12,127 16,392 9,669 38,188 Bonds payable 13,910,600 10,400 - 13,921,000 Net pension liability 67,122 135,145 64,237 266,504 Total Noncurrent Liabilities 13,989,849 161,937 73,906 14,225,692 Total Liabilities 15,059,014 346,399 110,518 15,515,931 Deferred Inflows of Resources Deferred pension resources 82,860 47,559 39,209 169,628 Net Position Net investment in capital assets 11,843,852 917,350 1,191,563 13,952,765 Unrestricted 11,201,854 2,652,440 1,147,416 15,001,710 Total Net Position 23,045,706$ 3,569,790$ 2,338,979$ 28,954,475$ Business-type Activities - Enterprise Funds City of Albertville, Minnesota Statement of Net Position (Continued) Proprietary Funds December 31, 2024 The notes to the financial statements are an integral part of this statement. 51 THIS PAGE IS LEFT BLANK INTENTIONALLY 52 Sewer Water Nonmajor Total Operating Revenues Charges for services 1,176,429$ 529,483$ 424,881$ 2,130,793$ Operating Expenses Personal services 414,347 314,603 240,008 968,958 Supplies 35,332 21,682 976 57,990 Professional services 44,366 28,002 61,428 133,796 Utilities 99,743 5,745 - 105,488 Insurance 17,816 8,908 1,782 28,506 Repairs and maintenance 8,287 27,945 2,741 38,973 Depreciation 527,710 54,776 37,139 619,625 Other charges 61,882 39,179 154,821 255,882 Total Operating Expenses 1,209,483 500,840 498,895 2,209,218 Operating Income (Loss)(33,054) 28,643 (74,014) (78,425) Nonoperating Revenues (Expenses) Property taxes 332,528 - - 332,528 Interest income 604,265 113,260 51,970 769,495 Intergovernmental 129,624 87,437 8,505 225,566 Interest expense and other (490,614) (802) - (491,416) Other income 12,355 10,367 2,796 25,518 Total Nonoperating Revenues (Expenses)588,158 210,262 63,271 861,691 Income (Loss) Before Contributions 555,104 238,905 (10,743) 783,266 Contributions Capital contributions 1,027,465 69,222 - 1,096,687 Change in Net Position 1,582,569 308,127 (10,743) 1,879,953 Net Position, January 1 21,463,137 3,261,663 2,349,722 27,074,522 Net Position, December 31 23,045,706$ 3,569,790$ 2,338,979$ 28,954,475$ Business-type Activities - Enterprise Funds City of Albertville, Minnesota Statement of Revenues, Expenses and Changes in Net Position Proprietary Funds For the Year Ended December 31, 2024 The notes to the financial statements are an integral part of this statement. 53 Sewer Water Nonmajor Totals Cash Flows from Operating Activities Receipts from customers and users 1,165,748$ 510,173$ 429,778$ 2,105,699$ Other receipts and payments, net 465,225 10,367 2,796 478,388 Payments to suppliers (287,488) (106,936) (217,136) (611,560) Payments to employees (414,319) (300,454) (220,540) (935,313) Net Cash Provided by (Used) Operating Activities 929,166 113,150 (5,102) 1,037,214 Cash Flows from Noncapital Financing Activities Advance to other funds 22,500 14,500 - 37,000 Intergovernmental receipts 129,624 87,437 8,505 225,566 Tax receipts 332,528 - - 332,528 Net Cash Provided by Noncapital Financing Activities 484,652 101,937 8,505 595,094 Cash Flows from Capital and Related Financing Activities Acquisition of capital assets (3,959,321) (87,437) - (4,046,758) Capital contributions 1,021,873 48,643 - 1,070,516 Interest paid on bonds (570,010) (962) - (570,972) Principal paid on bonds (539,600) (10,400) - (550,000) Net Cash Provided (Used) by Capital and Related Financing Activities (4,047,058) (50,156) - (4,097,214) Cash Flows from Investing Activities Interest received on investments 604,265 113,260 51,970 769,495 Net Increase (Decrease) in Cash and Cash Equivalents (2,028,975) 278,191 55,373 (1,695,411) Cash and Cash Equivalents, January 1 15,285,729 2,579,027 1,159,466 19,024,222 Cash and Cash Equivalents, December 31 13,256,754$ 2,857,218$ 1,214,839$ 17,328,811$ City of Albertville, Minnesota Statement of Cash Flows Proprietary Funds For the Year Ended December 31, 2024 Business-type Activities - Enterprise Funds The notes to the financial statements are an integral part of this statement. 54 Sewer Water Nonmajor Totals Reconciliation of Operating Income (Loss) to Net Cash Provided by Operating Activities Operating income (loss)(33,054)$ 28,643$ (74,014)$ (78,425)$ Adjustments to reconcile operating income (loss) to net cash provided by operating activities Other income related to operations 12,355 10,367 2,796 25,518 Depreciation 527,710 54,776 37,139 619,625 (Increase) decrease in assets/deferred outflows of resources Accounts receivable (12,316) (21,583) (279) (34,178) Prepaids (280) (2,848) (33) (3,161) Due from other governments 452,870 - (588) 452,282 Special assessments receivable 1,635 2,273 5,176 9,084 Deferred pension resources 10,879 14,141 7,811 32,831 Increase (decrease) in liabilities/deferred inflows of resources Accounts payable (19,829) 13,360 2,645 (3,824) Due to other governments 47 14,013 - 14,060 Accrued salaries payable (4,986) (7,557) (4,208) (16,751) Unearned revenue - - 2,588 2,588 Compensated absences payable 15,316 32,376 31,300 78,992 Net pension liability (37,261) (48,260) (26,768) (112,289) Deferred pension resources 16,080 23,449 11,333 50,862 Net Cash Provided (Used) by Operating Activities 929,166$ 113,150$ (5,102)$ 1,037,214$ Schedule of Noncash Capital and Financing Activities Capital contributions -$ -$ -$ -$ Capital assets purchased on account 39,742$ -$ -$ 39,742$ Amortization of bond premiums 22,991$ -$ -$ 22,991$ Business-type Activities - Enterprise Funds City of Albertville, Minnesota Statement of Cash Flows (Continued) Proprietary Funds For the Year Ended December 31, 2024 The notes to the financial statements are an integral part of this statement. 55 City of Albertville, Minnesota Statement of Fiduciary Net Position Fiduciary Funds December 31, 2024 Custodial Funds Assets Cash and temporary investments 974,641$ Accounts receivable 109,434 Inventory 2,911 Prepaid items 11,837 Total Assets 1,098,823 Liabilities Accounts payable 27,475 Due to other governments 1,401 Total Liabilities 28,876 Net Position Restricted for organizations and other governments 1,069,947$ The notes to the financial statements are an integral part of this statement. 56 Fiduciary Funds Custodial Funds Additions Contributions Charges for services 764,949$ Donations 5,000 Concessions 79,274 Total Contributions 849,223 Investment earnings 31,935 Miscellaneous 96,369 Total Additions 977,527 Deductions Professional services 396,595 Supplies 36,523 Utilities 221,188 Insurance 22,261 Repairs and maintenance 91,423 Capital outlay 87,790 Miscellaneous 31,777 Total Deductions 887,557 Net Increase (Decrease) in Fiduciary Net Position 89,970 Net Position, January 1 979,977 Net Position, December 31 1,069,947$ City of Albertville, Minnesota Statement of Changes in Fiduciary Net Position For the Year Ended December 31, 2024 The notes to the financial statements are an integral part of this statement. 57 THIS PAGE IS LEFT BLANK INTENTIONALLY 58 City of Albertville, Minnesota Notes to the Financial Statements December 31, 2024 Note 1: Summary of Significant Accounting Policies A. Reporting Entity The City of Albertville, Minnesota (the City) operates under the "Optional Plan A" form of government as defined in the State of Minnesota statutes. Under this plan, the government of the City is directed by a City Council composed of an elected Mayor and four elected City Council members. The City Council exercises legislative authority and determines all matters of policy. The City Council appoints personnel responsible for the proper administration of all affairs relating to the City. The City has considered all potential units for which it is financially accountable, and other organizations for which the nature and significance of their relationship with the City are such that exclusion would cause the City’s financial statements to be misleading or incomplete. The Governmental Accounting Standards Board (GASB) has set forth criteria to be considered in determining financial accountability. These criteria include appointing a voting majority of an organization’s governing body, and (1) the ability of the primary government to impose its will on that organization or (2) the potential for the organization to provide specific benefits to, or impose specific financial burdens on the primary government. Blended Component Unit The Albertville Economic Development Authority (EDA) is a legal separate entity created to carry out economic development activities. The EDA is governed by five members, which consists of the City Council and the operational responsibility for the EDA rests with the management of the City. The criterion that results in the EDA being reported as a blended component unit include 1) the five board members are members of the City Council and 2) the operational responsibility of the EDA rests with the management of the City. The EDA does not issue separate financial statements and are included in the financial section of this report. B. Government-wide and Fund Financial Statements The government-wide financial statements (i.e., the statement of net position and the statement of activities) report information on all of the nonfiduciary activities of the City. Governmental activities, which normally are supported by taxes and intergovernmental revenues, are reported separately from business-type activities, which rely to a significant extent on fees and charges for support. The statement of activities demonstrates the degree to which the direct expenses of a given function or segment are offset by program revenues. Direct expenses are those that are clearly identifiable with a specific function or segment. Amounts reported as program revenues include 1) charges to customers or applicants who purchase, use, or directly benefit from goods, services or privileges provided by a given function or segment and 2) grants and contributions that are restricted to meeting the operational or capital requirements of a particular function or segment. Taxes and other items not properly included among program revenues are reported instead as general revenues. Separate financial statements are provided for governmental funds, proprietary funds and fiduciary funds. Major individual governmental funds and major individual enterprise funds are reported as separate columns in the fund financial statements. C. Measurement Focus, Basis of Accounting and Financial Statement Presentation The government-wide financial statements are reported using the economic resources measurement focus and the accrual basis of accounting, as are the proprietary fund financial statements. All fiduciary funds, including custodial funds, use the economic resources measurement focus 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. 59 City of Albertville, Minnesota Notes to the Financial Statements December 31, 2024 Note 1: Summary of Significant Accounting Policies (Continued) Governmental fund financial statements are reported using the current financial resources measurement focus and the modified accrual basis of accounting. Revenues are recognized as soon as they are both measurable and available. Revenues are considered to be available when they are collectible within the current period or soon enough thereafter to pay liabilities of the current period. For this purpose, the City considers revenues to be available if they are collected within 60 days of the end of the current fiscal period. Expenditures generally are recorded when a liability is incurred, as under accrual accounting. However, debt service expenditures, as well as expenditures related to compensated absences and claims and judgments, are recorded only when payment is due. Property taxes, franchise taxes, licenses and interest associated with the current fiscal period are all considered to be susceptible to accrual and so have been recognized as revenues of the current fiscal period. Only the portion of special assessments receivable due within the current fiscal period is considered to be susceptible to accrual as revenue of the current period. All other revenue items are considered to be measurable and available only when cash is received by the City. Revenue resulting from exchange transactions, in which each party gives and receives essentially equal value, is recorded on the accrual basis when the exchange takes place. On a modified accrual basis, revenue is recorded in the year in which the resources are measurable and become available. Non-exchange transactions, in which the City receives value without directly giving equal value in return, include property taxes, grants, entitlement and donations. On an accrual basis, revenue from property taxes is recognized in the year for which the tax is levied. Revenue from grants, entitlements and donations is recognized in the year in which all eligibility requirements have been satisfied. Eligibility requirements include timing requirements, which specify the year when the resources are required to be used or the year when use is first permitted, matching requirements, in which the City must provide local resources to be used for a specified purpose, and expenditure requirements, in which the resources are provided to the City on a reimbursement basis. On a modified accrual basis, revenue from non-exchange transactions must also be available before it can be recognized. Unearned revenue arises when assets are recognized before revenue recognition criteria have been satisfied. Grants and entitlements received before eligibility requirements are met are also recorded as unearned revenue. The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect certain reported amounts and disclosures. Accordingly, actual results could differ from those estimates. The City reports the following major governmental funds: The General fund is the City’s primary operating fund. It accounts for all financial resources of the City, except those required to be accounted for in another fund. The Debt Service fund accounts for the accumulation of resources and payment of bond principal and interest on long-term general obligation debt of governmental funds. The Capital Outlay Reserve fund accounts for the accumulation of resources necessary to fund future capital improvements and equipment purchases. The City reports the following major proprietary funds: The Sewer fund accounts for the activities of the City’s sewage collection utility. The Water fund accounts for the activities of the City’s water utility. 60 City of Albertville, Minnesota Notes to the Financial Statements December 31, 2024 Note 1: Summary of Significant Accounting Policies (Continued) Additionally, the City reports the following fund types: Fiduciary Funds Custodial funds are used to report fiduciary activities that are not required to be reported in pension (and other employee benefit) trust funds, investment trust funds, or private-purpose trust funds. The City’s Custodial fund accounts for activities of St. Michael-Albertville Ice Arena, Albertville Lions and Friendly City Days. 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 accounts for the activities of the City’s Friendly City Days celebration. As a general rule, the effect of interfund activity has been eliminated from government-wide financial statements. Exceptions to this general rule are charges between the City’s water and sewer functions and various other functions of the City. Elimination of these charges would distort the direct costs and program revenues reported for the various functions concerned. Proprietary funds distinguish operating revenues and expenses from nonoperating items. Operating revenues and expenses generally result from providing services and producing and delivering goods in connection with a proprietary fund’s principal ongoing operations. The principal operating revenues of the City enterprise funds are charges to customers for sales and services. Operating expenses for enterprise funds include the cost of sales and services, administrative expenses and depreciation on capital assets. All revenues and expenses not meeting this definition are reported as nonoperating revenues and expenses. D. Assets, Deferred Outflows of Resources, Liabilities, Deferred Inflows of Resources and Net Position/Fund Balances Deposits and Investments The City’s cash and cash equivalents are considered to be cash on hand, demand deposits and short-term investments with original maturities of three months or less from the date of acquisition. The proprietary funds’ portion in the government-wide cash and temporary investments pool is considered to be cash and cash equivalents for purposes of the statement of cash flows. Cash balances from all funds are pooled and invested, to the extent available, in certificates of deposit and other authorized investments. Earnings from such investments are allocated on the basis of applicable participation by each of the funds. 61 City of Albertville, Minnesota Notes to the Financial Statements December 31, 2024 Note 1: Summary of Significant Accounting Policies (Continued) The City may also invest idle funds as authorized by Minnesota statutes, as follows: 1. Direct obligations or obligations guaranteed by the United States or its agencies. 2. Shares of investment companies registered under the Federal Investment Company Act of 1940 and received the highest credit rating, rated in one of the two highest rating categories by a statistical rating agency, and have a final maturity of thirteen months or less. 3. General obligations of a state or local government with taxing powers rated “A” or better; revenue obligations rated “AA” or better. 4. General obligations of the Minnesota Housing Finance Agency rated “A” or better. 5. Obligation of a school district with an original maturity not exceeding 13 months and (i) rated in the highest category by a national bond rating service or (ii) enrolled in the credit enhancement program pursuant to statute section 126C.55. 6. Bankers’ acceptances of United States banks eligible for purchase by the Federal Reserve System. 7. Commercial paper issued by United States banks corporations or their Canadian subsidiaries, of highest quality category by at least two nationally recognized rating agencies, and maturing in 270 days or less. 8. Repurchase or reverse repurchase agreements and securities lending agreements with financial institutions qualified as a “depository” by the government entity, with banks that are members of the Federal Reserve System with capitalization exceeding $10,000,000, a primary reporting dealer in U.S. government securities to the Federal Reserve Bank of New York, or certain Minnesota securities broker-dealers. 9. Guaranteed Investment Contracts (GIC’s) issued or guaranteed by a United States commercial bank, a domestic branch of a foreign bank, a United States insurance company, or its Canadian subsidiary, whose similar debt obligations were rated in one of the top two rating categories by a nationally recognized rating agency. Broker money market funds operate in accordance with appropriate state laws and regulations. The reported value of the pool is the same as the fair value of the shares. The City categorizes its fair value measurements within the fair value hierarchy established by generally accepted accounting principles. The hierarchy is based on the valuation inputs used to measure the fair value of the asset. Level 1 inputs are quoted prices in active markets for identical assets; Level 2 inputs are significant other observable inputs; Level 3 inputs are significant unobservable inputs. The City has the following recurring fair value measurements as of December 31, 2024: • 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. 62 City of Albertville, Minnesota Notes to the Financial Statements December 31, 2024 Note 1: Summary of Significant Accounting Policies (Continued) The Minnesota Municipal Money Market Fund is regulated by Minnesota statutes and the Board of Directors of the League of Minnesota Cities and is an external investment pool not registered with the Securities Exchange Commission (SEC) that follows the regulatory rules of the SEC. In accordance with GASB Statement No. 79, the City’s investment in this pool is valued at amortized cost, which approximates fair value. There are no restrictions or limitations on withdrawals from the 4M Liquid Asset Fund. Investments in the 4M Plus must be deposited for a minimum of 14 calendar days. Withdrawals prior to the 14-day restriction period will be subject to a penalty equal to seven days interest on the amount withdrawn. Seven days' notice of redemption is required for withdrawals of investments in the 4M Term Series withdrawn prior to the maturity date of that series. A penalty could be assessed as necessary to recoup the Series for any charges, losses, and other costs attributable to the early redemption. Financial statements of the 4M Fund can be obtained by contracting RBC Global Management at 100 South Fifth Street, Suite 2300, Minneapolis, MN 55402-1240. Investment Policy The City’s investment policy incorporates Minnesota statutes as described above which reduces the City’s exposure to credit, custodial credit and interest rate risks. Specific risk information for the City is as follows: • Credit Risk. Credit risk is the risk that an issuer or other counterparty to an investment will not fulfill its obligations. Ratings are provided by various credit rating agencies and where applicable, indicate associated credit risk. Minnesota statutes and the City’s investment policy limit the City’s investments to the list above. • Custodial Credit Risk. The custodial credit risk for investments is the risk that, in the event of the failure of the counterparty to a transaction, a government will not be able to recover the value of investment or collateral securities that are in the possession of an outside party. The City’s investments held by the broker-dealer were insured by SIPC or other supplemental insurance as of December 31, 2024. However, each investment brokerage firm may have a limit to their supplemental insurance and because of the size of the City’s portfolio in relation to the brokerage firm’s excess SIPC coverage limits the portion of the supplemental policy applicable to the City’s portfolio is unknown. The City’s investment policy does not address custodial credit risk. The City accepts the risk due to the controls in place at the broker-dealer. • Concentration of Credit Risk. Concentration of credit risk is the risk of loss attributed to the magnitude of a government's investment in a single issuer. In accordance with the City’s investment policy, the City diversifies its investment portfolio to eliminate the risk of loss resulting from over-concentration of assets in a specific maturity, a specific issuer or a specific class of securities. The maturities selected shall provide for stability of income and reasonable liquidity. • Interest Rate Risk. Interest rate risk is the risk that changes in interest rates will adversely affect the fair value of an investment. In accordance with its investment policy, the City will attempt to match its investments with anticipated cash flow requirements. Unless matched to a specific cash flow, the City will not directly invest in securities maturing more than an average expected life of ten years from the date of the purchase. Property Taxes The City Council annually adopts a tax levy in December and certifies it to the County for collection in the following year. The County is responsible for collecting all property taxes for the City. These taxes attach an enforceable lien on taxable property within the City on January 1 and are payable by the property owners in two installments. The taxes are collected by the County Auditor and tax settlements are made to the City during January, June, and November each year. Delinquent taxes receivable include the past six years’ uncollected taxes. Delinquent taxes have been offset by a deferred inflow of resources for taxes not received within 60 days after year end in the fund financial statements. 63 City of Albertville, Minnesota Notes to the Financial Statements December 31, 2024 Note 1: Summary of Significant Accounting Policies (Continued) Accounts Receivable Accounts receivable include amounts billed for services provided before year end. To the extent considered necessary, the City annually certifies delinquent water, sewer and storm water accounts to the County for collection in the following year. Therefore, there has been no allowance for doubtful accounts established. Special Assessments Special assessments represent the financing for public improvements paid for by benefiting property owners. These assessments are recorded as receivables upon certification to the County. Special assessments are recognized as revenue when they are received in cash or within 60 days after year end. All governmental fund special assessments receivable are offset by a deferred inflow of resources in the fund financial statements. Interfund Receivables and Payables All outstanding balances between funds are reported as “due to/from other funds” or “advances to/from other funds.” Any residual balances outstanding between the governmental activities and business-type activities are reported in the government-wide financial statements as “internal balances.” Land Held for Resale The City acquires properties for redevelopment purposes. These properties are reported at their net realizable value in the financial statements. Any costs incurred that are above a property’s net realizable value are reported as expenditures of the current period. The balance of land held for resale is offset with nonspendable or restricted fund balance to indicate that it is not available for appropriation. Notes Receivable Notes receivable include amounts paid by or loaned by the City that will be paid back by other entities. 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 and Prepaid Items 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. Certain payments to vendors reflect costs applicable to future accounting periods and are recorded as prepaid items and are recorded as prepaid items. The City uses the consumption method to account for all prepaid items. 64 City of Albertville, Minnesota Notes to the Financial Statements December 31, 2024 Note 1: Summary of Significant Accounting Policies (Continued) Capital Assets Capital assets, which include property, plant, equipment and infrastructure assets (e.g., roads, bridges, sidewalks, and similar items) are reported in the applicable governmental or business-type activities columns in the government-wide financial statements. Capital assets are defined by the City as assets with an estimated useful life of more than one year and an initial individual cost of more than the following: Category Cost Land/Land Improvements 10,000$ Other Improvements 25,000 Infrastructure 100,000 Buildings 25,000 Building Improvements 25,000 Vehicles 5,000 Other Equipment 5,000 Intangible Assets 10,000 The City reports infrastructure assets on a network and subsystem basis. Accordingly, the amounts spent for the construction or acquisition of infrastructure assets are capitalized and reported in the government-wide financial statements regardless of their amount. In the case of initial capitalization of general infrastructure assets (i.e., those reported by governmental activities) the City chose to include items dating back to June 30, 1980. The City was able to estimate the historical cost for the initial reporting of these assets through back trending (i.e., estimating the current replacement cost of the infrastructure to be capitalized and using an appropriate price-level index to deflate the cost to the acquisition year or estimated acquisition year). As the City constructs or acquires capital assets each period, including infrastructure assets, they are capitalized and reported at historical cost. The reported value excludes normal maintenance and repairs which are essentially amounts spent in relation to capital assets that do not increase the capacity or efficiency of the item or extend its useful life beyond the original estimate. In the case of donations, the City values these capital assets at the acquisition value of the item at the date of its donation. Property, plant and equipment will be depreciated using the straight-line method over the following estimated useful lives: Useful Lives Assets in Years Land Improvements 5 to 30 Infrastructure 15 to 50 Buildings 15 to 40 Vehicles 3 to 15 Other Equipment 3 to 20 65 City of Albertville, Minnesota Notes to the Financial Statements December 31, 2024 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 one item that qualifies for reporting in this category. The item, deferred pension resources, is reported only in the statements of net position. This item results from actuarial calculations and current year pension contributions made subsequent to the measurement date. Pensions For purposes of measuring the net pension liability, deferred outflows/inflows of resources, and pension expense, information about the fiduciary net position of the Public Employees Retirement Association (PERA) and additions to/deductions from PERA’s fiduciary net position have been determined on the same basis as they are reported by PERA except that PERA’s fiscal year end is June 30. For this purpose, plan contributions are recognized as of employer payroll paid dates and benefit payments and refunds are recognized when due and payable in accordance with the benefit terms. Investments are reported at fair value. The General fund is typically used to liquidate the governmental net pension liability. For purposes of measuring the net pension liability (asset) and deferred outflows of resources related to pensions, and pension expense, information about the fiduciary net position of the defined benefit plan administered by the Albertville Firefighter’s Relief Association and additions to and deductions from the plan’s fiduciary net position have been determined on the same basis as they are reported by the plan. Investments are reported at fair value. The total pension expense for the GERP, PEPFF, PEDCP and the Albertville Fire Relief Association is as follows: GERP PEPFF PEDCP FRA Total City's proportionate share 115,945$ 36,003$ 120$ 237,153$ 389,221$ Proportionate share of State's contribution 523 653 - - 1,176 Total pension expense 116,468$ 36,656$ 120$ 237,153$ 390,397 Compensated Absences It is the City's policy to permit employees to accumulate earned but unused vacation and sick pay benefits. All vacation and sick pay is accrued when incurred in the government-wide and proprietary fund financial statements. A liability for these amounts is reported in governmental funds only if they have matured, for example, as a result of employee resignations and retirements. The General fund is typically used to liquidate the governmental compensated absences liability. Long-term Obligations In the government-wide financial statements, and proprietary fund types in the fund financial statements, long-term debt and other long-term obligations are reported as liabilities in the applicable governmental activities, business-type activities, or proprietary fund type statement of net position. The recognition of bond premiums and discounts are amortized over the life of the bonds using the straight line method. Bonds payable are reported net of the applicable bond premium or discount. Bond issuance costs are reported as an expense in the period incurred. $ 66 City of Albertville, Minnesota Notes to the Financial Statements December 31, 2024 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, which is the City’s highest level of decision-making authority. Committed amounts cannot be used for any other purpose unless the City Council modifies or rescinds the commitment by resolution. Assigned - Amounts constrained for specific purposes that are internally imposed. In governmental funds other than the General fund, assigned fund balance represents all remaining amounts that are not classified as nonspendable and are neither restricted nor committed. In the General fund, assigned amounts represent intended uses established by the City Council itself or by an official to which the governing body delegates the authority. The City Council has adopted a fund balance policy which delegates the authority to assign amounts for specific purposes to the Finance Director and/or City Administrator. Unassigned - The residual classification for the General fund and also negative residual amounts in other funds. The City considers restricted amounts to be spent first when both restricted and unrestricted fund balance is available. Additionally, the City would first use committed, then assigned, and lastly unassigned amounts of unrestricted fund balance when expenditures are made. The City has formally adopted a fund balance policy for the General fund. The City’s policy is to maintain a minimum unassigned fund balance of 35 percent of next year’s budgeted operating expenditures for cash-flow timing needs. 67 City of Albertville, Minnesota Notes to the Financial Statements December 31, 2024 Note 1: Summary of Significant Accounting Policies (Continued) Net Position Net position represents the difference between assets and deferred outflows of resources and liabilities and deferred inflows of resources. Net position is displayed in three components: a. Net investment in capital assets - Consists of capital assets, net of accumulated depreciation reduced by any outstanding debt attributable to acquire capital assets. b. Restricted net position - Consist of net position restricted when there are limitations imposed on their use through external restrictions imposed by creditors, grantors, laws or regulations of other governments. c. Unrestricted net position - All other net positions that do not meet the definition of “restricted” or “net investment in capital assets”. When both restricted and unrestricted resources are available for use, it is the City’s policy to use restricted resources first, then unrestricted resources as they are needed. Note 2: Stewardship, Compliance and Accountability A. Budgetary Information An annual budget is adopted on a basis consistent with accounting principles generally accepted in the United States of America for the General fund. All annual appropriations lapse at fiscal year-end. The City does not use encumbrance accounting. In June of each year, all departments of the City submit requests for appropriations to the City Administrator so that a budget may be prepared. Before September 30, the proposed budget is presented to the City Council for review. The City Council holds public hearings and a final budget is prepared and adopted in early December. The appropriated budget is prepared by fund, function and department. The City’s department heads, with the approval of the City Administrator, may make transfers of appropriations within a department. Transfers of appropriations between departments require the approval of the City Council. The legal level of budgetary control is the department level. Budgeted amounts are as originally adopted by the City Council. There were no budget amendments made in 2024. B. Deficit Fund Equity The following funds had deficit fund balances as of December 31, 2024: Amount Nonmajor TIF #12 Schultz & Schupp 420$ TIF #17 Old Castle 231,299 TIF #20 Scherer Brothers 635,268 TIF #21 Medart 11,888 Fund The deficit fund balances will be eliminated with interfund loans from other funds and future tax increments. 68 City of Albertville, Minnesota Notes to the Financial Statements December 31, 2024 Note 2: Stewardship, Compliance and Accountability C. Excess of Expenditures over Appropriations For the year ended December 31, 2024 expenditures exceed appropriations in the following fund: Excess of Expenditures Final Over Fund Budget Actual Appropriations General 4,485,385$ 5,140,733$ 655,348$ The excess of expenditures over appropriations was funded by revenues in excess of budget. Note 3: Detailed Notes on All Funds A. Deposits and Investments Deposits Custodial credit risk for deposits and investments is the risk that in the event of a bank failure, the City’s deposits and investments may not be returned or the City will not be able to recover collateral securities in the possession of an outside party. In accordance with Minnesota statutes and as authorized by the City Council, the City maintains deposits at those depository banks, all of which are members of the Federal Reserve System. Minnesota statutes require that all City deposits be protected by insurance, surety bond or collateral. The fair value of collateral pledged must equal 110 percent of the deposits not covered by insurance or bonds, with the exception of irrevocable standby letters of credit issued by Federal Home Loan Banks as this type of collateral only requires collateral pledged equal to 100 percent of the deposits not covered by insurance or bonds. Authorized collateral in lieu of a corporate surety bond includes: • United States government Treasury bills, Treasury notes, Treasury bonds; • Issues of United States government agencies and instrumentalities as quoted by a recognized industry quotation service available to the government entity; • General obligation securities of any state or local government with taxing powers which is rated “A” or better by a national bond rating service, or revenue obligation securities of any state or local government with taxing powers which is rated “AA” or better by a national bond rating service; • General obligation securities of a local government with taxing powers may be pledged as collateral against funds deposited by that same local government entity; • Irrevocable standby letters of credit issued by Federal Home Loan Banks to a municipality accompanied by written evidence that the bank’s public debt is rated “AA” or better by Moody’s Investors Service, Inc., or Standard & Poor’s Corporation; and • Time deposits that are fully insured by any federal agency. Minnesota statutes require that all collateral shall be placed in safekeeping in a restricted account at a Federal Reserve Bank, or in an account at a trust department of a commercial bank or other financial institution that is not owned or controlled by the financial institution furnishing the collateral. The selection should be approved by the government entity. 69 City of Albertville, Minnesota Notes to the Financial Statements December 31, 2024 Note 3: Detailed Notes on All Funds (Continued) At year end, the City’s carrying amount of deposits, bank balance, FDIC coverage and pledged collateral are shown in the chart below. Carrying amount of deposits 963,418$ Bank balance 1,000,000$ Coverred by FDIC (250,000) Collaterized with securitiies pledged in City's name 750,000$ Investments As of December 31, 2024, the City had the following investments: Credit Segmented Quality/Time Ratings (1)Distribution (2)Amounts Level 1 Level 2 Level 3 Pooled Investments at Amortized Costs 4M Fund N/A Less than 1 year 4,324,857$ -$ -$ -$ Broker Money Market Funds N/A Less than 1 year 6,563,121 - - - Bank N/A Less than 1 year 404,630 - - - Non-pooled Investments at Fair Value Brokered Certificates of Deposit NA Less than 1 year 1,211,118 - 1,211,118 - Brokered Certificates of Deposit NA 1 to 5 years 2,510,325 - 2,510,325 - Municipal Bonds AAA Less than 1 year 298,434 - 298,434 - Municipal Bonds AAA 1 to 5 years 1,138,727 - 1,138,727 - Municipal Bonds AA+1 to 5 years 778,013 - 778,013 - Municipal Bonds AA Less than 1 year 1,362,188 - 1,362,188 - Municipal Bonds AA 1 to 5 years 1,832,823 - 1,832,823 - Municipal Bonds AA More than 5 years 424,535 - 424,535 - Municipal Bonds AA-1 to 5 years 331,368 - 331,368 - Governmental Securities NA Less than 1 year 581,565 581,565 - - Governmental Securities NA 1 to 5 years 4,705,918 4,705,918 - - Governmental Securities NA More than 5 years 1,928,784 1,928,784 - - Mortgage Backed Securities NA 1 to 5 years 738,773 738,773 - - Mortgage Backed Securities NA More than 5 years 479,860 479,860 - - Total Investments 29,615,037$ 8,434,900$ 9,887,529$ -$ Types of Investments Fair Value Measurement Using (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. 70 City of Albertville, Minnesota Notes to the Financial Statements December 31, 2024 Note 3: Detailed Notes on All Funds (Continued) Cash and Investments Summary A reconciliation of cash and temporary investments as shown on the financial statements for the City follows: Carrying Amount of Deposits 963,418$ Investments 29,615,037 Cash on Hand 849 Total 30,579,304$ Cash and Investments Statement of net position Cash and temporary investments 29,604,663$ Statement of Fiduciary net position 974,641 Total 30,579,304$ B. Capital Assets Capital asset activity for the year ended December 31, 2024 was as follows: Beginning Ending Balance Increases Decreases Balance Governmental Activities Capital Assets not Being Depreciated Land 3,983,292$ 506,950$ -$ 4,490,242$ Construction in progress 1,213,773 1,256,647 (1,215,774) 1,254,646 Total Capital Assets not Being Depreciated 5,197,065 1,763,597 (1,215,774) 5,744,888 Capital Assets Being Depreciated Buildings 6,543,862 40,583 - 6,584,445 Infrastructure 33,609,761 1,261,198 - 34,870,959 Land improvements 3,523,937 - - 3,523,937 Machinery and equipment 1,649,569 118,536 - 1,768,105 Vehicles 3,042,301 388,701 (25,908) 3,405,094 Total Capital Assets Being Depreciated 48,369,430 1,809,018 (25,908) 50,152,540 Less Accumulated Depreciation for Buildings (3,966,022) (160,345) - (4,126,367) Infrastructure (22,552,341) (1,006,432) - (23,558,773) Land improvements (1,787,368) (131,939) - (1,919,307) Machinery and equipment (772,311) (124,462) - (896,773) Vehicles (1,721,530) (196,061) 25,908 (1,891,683) Total Accumulated Depreciation (30,799,572) (1,619,239) 25,908 (32,392,903) Total Capital Assets Being Depreciated, Net 17,569,858 189,779 - 17,759,637 Governmental Activities Capital Assets, Net 22,766,923$ 1,953,376$ (1,215,774)$ 23,504,525$ 71 City of Albertville, Minnesota Notes to the Financial Statements December 31, 2024 Note 3: Detailed Notes on All Funds (Continued) Beginning Ending Balance Increases Decreases Balance Business-type Activities Capital Assets not Being Depreciated Land 351,834$ -$ -$ 351,834$ Construction in progress 7,138,400 3,453,235 - 10,591,635 Total Capital Assets not Being Depreciated 7,490,234 3,453,235 - 10,943,469 Capital Assets Being Depreciated Buildings 4,719,693 - - 4,719,693 Infrastructure 19,886,690 - - 19,886,690 Machinery and equipment 392,595 178,660 - 571,255 Vehicles 523,784 51,842 - 575,626 Total Capital Assets Being Depreciated 25,522,762 230,502 - 25,753,264 Less Accumulated Depreciation for Buildings (2,113,483) (118,022) - (2,231,505) Infrastructure (6,358,105) (462,527) - (6,820,632) Machinery and equipment (346,766) (26,368) - (373,134) Vehicles (438,310) (12,708) - (451,018) Total Accumulated Depreciation (9,256,664) (619,625) - (9,876,289) Total Capital Assets Being Depreciated, Net 16,266,098 (389,123) - 15,876,975 Business-type Activities Capital Assets, Net 23,756,332$ 3,064,112$ -$ 26,820,444$ Depreciation expense was charged to functions/programs of the City as follows: Governmental Activities General government 155,730$ Public safety 154,815 Public works 1,197,328 Culture and recreation 111,366 Total Depreciation Expense - Governmental Activities 1,619,239$ Business-type Activities Sewer 527,710$ Water 54,776 Storm water 37,139 Total Depreciation Expense - Business-type Activities 619,625$ 72 City of Albertville, Minnesota Notes to the Financial Statements December 31, 2024 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, 2024 is as follows: Amount Capital Outlay Reserve Other Governmental Funds 12,308$ Debt Service Other Governmental Funds 836,173 Nonmajor Business-type Fund Other Governmental Funds 36,000 Total Interfund Balances 884,481$ Payable FundReceivable Fund The above interfund balances are to eliminate deficit cash balances and finance projects. The city made one transfer in the current year to close out the TIF 16 Mold Tech fund. The General fund transferred $1,516 into the fund. D. Long-term Debt General Obligation Bonds The City issues general obligation bonds to provide funds for the acquisition and construction of major capital facilities. General obligation bonds have been issued for both governmental activities and business-type activities. These bonds are reported in the proprietary funds if they are expected to be repaid from proprietary fund revenues. General obligation bonds are direct obligations of the City and pledge the full faith and credit of the City. General Obligation Special Assessment Bonds and Improvement Notes The following bonds were issued to finance various improvement projects in the City and will be repaid with the collection of special assessment levies. Issue Maturity Balance at Authorized Issued Date Date Year End G.O. Improvement Refunding Bonds, Series 2011C 1,825,000$ 1,825,000$ 2.00 - 3.35 %08/25/11 02/01/25 155,000$ G.O. Improvement Refunding Bonds, Series 2012B 3,215,000 3,215,000 0.50 - 2.35 05/10/12 12/01/25 255,000 General Obligation Improvement Note, Series 2012 4,113,700 3,278,551 1.28 03/23/12 08/20/32 1,529,000 Total G.O. Special Assessment Bonds and Improvement Notes 1,939,000$ Rate Interest Description 73 City of Albertville, Minnesota Notes to the Financial Statements December 31, 2024 Note 3: Detailed Notes on All Funds (Continued) Annual debt service requirements to maturity for general obligation special assessment bonds are as follows: Year Ending December 31,Principal Interest Total 2025 593,000$ 28,114$ 621,114$ 2026 185,000 17,188 202,188 2027 187,000 14,826 201,826 2028 190,000 12,438 202,438 2029 192,000 10,012 202,012 2030 - 2032 592,000 15,184 607,184 Total 1,939,000$ 97,762$ 2,036,762$ Governmental Activities 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: Net Operating Revenues 1,176,429$ 529,483$ Principal and Interest 1,109,610 11,362 Percentage of Revenues 94 %2 % Sewer Water The components of the general obligation revenues bonds are as follows: Authorized Issue Maturity Balance at and Issued Date Date Year End G.O. Utility Revenue Bonds, Series 2011A 520,000$ 1.10 - 3.70 %04/21/11 02/01/26 80,000$ G.O. Sewer Revenue Refunding Bonds, Series 2013A 2,515,000 .70 - 2.10 01/24/13 12/01/25 270,000 G.O. Sewer Revenue Series 2019A 5,720,000 2.00 - 3.00 09/24/19 02/01/39 4,475,000 General Obligation Disposal System Bonds, Series 2023A 9,400,000 4.00 - 5.00 06/13/23 02/01/49 9,400,000 Total G.O. Revenue Bonds 14,225,000$ Rate Interest Description 74 City of Albertville, Minnesota Notes to the Financial Statements December 31, 2024 Note 3: Detailed Notes on All Funds (Continued) Annual debt service requirements to maturity for general obligation revenue bonds are as follows: Year Ending December 31,Principal Interest Total 2025 770,000$ 496,155$ 1,266,155$ 2026 520,000 470,605 990,605 2027 500,000 450,665 950,665 2028 520,000 431,990 951,990 2029 535,000 413,940 948,940 2030 - 2034 2,970,000 1,774,252 4,744,252 2035 - 2039 3,480,000 1,260,784 4,740,784 2040 - 2044 2,220,000 771,000 2,991,000 2045 - 2049 2,710,000 279,800 2,989,800 Total 14,225,000$ 6,349,191$ 20,574,191$ Business-type Activities Changes in Long-term Liabilities Long-term liability activity for the year ended December 31, 2024 was as follows: Beginning Ending Due Within Balance Increases Decreases Balance One Year Governmental Activities Bonds Payable G.O. Special Assessment bonds 2,520,000$ -$ (581,000)$ 1,939,000$ 593,000$ Unamortized premium 12,092 - (6,418) 5,674 - Total Bonds Payable 2,532,092 - (587,418) 1,944,674 593,000 Compensated Absences Payable*98,988 58,928 - 157,916 118,437 Governmental Activity Long-term Liabilities 2,631,080$ 58,928$ (587,418)$ 2,102,590$ 711,437$ Business-type Activities Bonds Payable G.O. Revenue bonds 14,775,000$ -$ (550,000)$ 14,225,000$ 770,000$ Unamortized premium 488,991 - (22,991) 466,000 - Total Bonds Payable 15,263,991 - (572,991) 14,691,000 770,000 Compensated Absences Payable*73,760 78,992 - 152,752 114,564 Business-type Activity Long-term Liabilities 15,337,751$ 78,992$ (572,991)$ 14,843,752$ 884,564$ *Change in compensated absences is shown as net. 75 City of Albertville, Minnesota Notes to the Financial Statements December 31, 2024 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, 2024, portions of the City’s fund balance are not available for appropriation due to not being in spendable form (Nonspendable), legal restrictions (Restricted), City Council action (Committed), policy and/or intent (Assigned). The following is a summary of the components of fund balance: Purpose Amount Nonspendable General Land held for resale 51,000$ General Prepaid items 140,320 Total Nonspendable 191,320 Restricted Debt Service Debt Service 2,766,556 Capital Outlay Reserve Public safety 349,995 Other governmental funds Public safety - Charitable gambling 259,490 Other governmental funds Park improvements 1,004,580 Other governmental funds Tax increment financing 352,120 Total Restricted 4,732,741 Commited Other governmental funds Revolving loan 165,673 Other governmental funds Election Resources 1,599 Total Committed 167,272 Assigned Capital Outlay Reserve Future capital projects 5,986,659 Unassigned General 2,647,909 Other governmental funds (878,875) Total Unassigned 1,769,034 Total 12,847,026$ Fund 76 City of Albertville, Minnesota Notes to the Financial Statements December 31, 2024 Note 4: Defined Benefit Pension Plans - Statewide A. Plan Description General Employees Retirement Plan (General Plan) Public Employees Police and Fire Plan (Police and Fire Plan) B. Benefits Provided General Employee Plan Benefits The City participates in the following cost-sharing multiple-employer defined benefit pension plans administered by the Public Employees Retirement Association of Minnesota (PERA). These plan provisions are established and administered according to Minnesota Statutes chapters 353, 353D, 353E, 353G and 356. Minnesota Statutes chapter 356 defines each plan’s financial reporting requirements. PERA’s defined benefit pension plans are tax qualified plans under Section 401(a) of the Internal Revenue Code. Membership in the General Plan includes employees of counties, cities, townships, schools in non-certified positions, and other governmental entities whose revenues are derived from taxation, fees, or assessments. Plan membership is required for any employee who is expected to earn more than $425 in a month, unless the employee meets exclusion criteria. Membership in the Police and Fire Plan includes full-time, licensed police officers and firefighters who meet the membership criteria defined in Minnesota Statutes section 353.64 and who are not earning service credit in any other PERA retirement plan or a local relief association for the same service. Employers can provide Police and Fire Plan coverage for part-time positions and certain other public safety positions by submitting a resolution adopted by the entity’s governing body. The resolution must state that the position meets plan requirements. 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. When a member is “vested,” they have earned enough service credit to receive a lifetime monthly benefit after leaving public service and reaching an eligible retirement age. Members who retire at or over their Social Security full retirement age with at least one year of service qualify for a retirement benefit. General Employees Plan requires three years of service to vest. Benefits are based on a member’s highest average salary for any five successive years of allowable service, age, and years of credit at termination of service. Two methods are used to compute benefits for General Plan members. Members hired prior to July 1, 1989, receive the higher of the Step or Level formulas. Only the Level formula is used for members hired after June 30, 1989. Under the Step formula, General Plan members receive 1.2 percent of the highest average salary for each of the first 10 years of service and 1.7 percent for each additional year. Under the Level formula, General Plan members receive 1.7 percent of highest average salary for all years of service. For members hired prior to July 1, 1989 a full retirement benefit is available when age plus years of service equal 90 and normal retirement age is 65. Members can receive a reduced requirement benefit as early as age 55 if they have three or more years of service. Early retirement benefits are reduced by .25 percent for each month under age 65. Members with 30 or more years of service can retire at any age with a reduction of 0.25 percent for each month the member is younger than age 62. The Level formula allows General Plan members to receive a full retirement benefit at age 65 if they were first hired before July 1, 1989 or at age 66 if they were hired on or after July 1, 1989. Early retirement begins at age 55 with an actuarial reduction applied to the benefit. 77 City of Albertville, Minnesota Notes to the Financial Statements December 31, 2024 Note 4: Defined Benefit Pension Plans - Statewide (Continued) Police and Fire Plan Benefits C. Contributions General Employees Fund Contributions Police and Fire Fund Contributions D. Pension Costs General Employees Fund Pension Costs At December 31, 2024, the City reported a liability of $754,926 for its proportionate share of the General Employees Fund’s net pension liability. The City's net pension liability reflected a reduction due to the State of Minnesota’s contribution of $16 million. The State of Minnesota is considered a non-employer contributing entity and the state’s contribution meets the definition of a special funding situation. The State of Minnesota’s proportionate share of the net pension liability associated with the City totaled $19,521. 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. The 2024 annual increase was 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 prorated increase. Benefits for Police and Fire Plan members hired before July 1, 2010, are vested after three years of service. Members hired on or after July 1, 2010, are 50 percent vested after five years of service and 100 percent vested after ten years. After five years, vesting increase by 10 percent each full year of service until members are 100 percent vested after ten years. Police and Fire Plan members receive 3 percent of highest average salary for all years of service. Police and Fire Plan members receive a full retirement benefit when they are age 55 and vested, or when their age plus their years of service equals 90 or greater if they were first hired before July 1, 1989. Early retirement starts at age 50, and early retirement benefits are reduced by 0.417 percent each month members are younger than age 55. 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. Minnesota Statutes chapters 353, 353E, 353G and 356 set the rates for employer and employee contributions. Contribution rates can only be modified by the state Legislature. General Plan members were required to contribute 6.50 percent of their annual covered salary in fiscal year 2024 and the City was required to contribute 7.50 percent for Coordinated Plan members. The City’s contributions to the General Employees Fund for the years ending December 31, 2024, 2023 and 2022, were $140,213, $122,281 and $106,351, respectively. The City’s contributions were equal to the required contributions for each year as set by state statute. Police and Fire Plan members were required to contribute 11.80 percent of their annual covered salary in fiscal year 2024 and the City was required to contribute 17.70 percent for Police and Fire Plan members. The City’s contributions to the Police and Fire Fund for the years ending December 31, 2024, 2023 and, 2022 were $30,694, $27,424 and $23,827, respectively. The City’s contributions were equal to the required contributions for each year as set by state statute. 78 City of Albertville, Minnesota Notes to the Financial Statements December 31, 2024 Note 4: Defined Benefit Pension Plans - Statewide (Continued) City's Proportionate Share of the Net Pension Liability 754,926$ State of Minnesota's Proportionate Share of the Net Pension Liability Associated with the City 19,521 Total 774,447$ Deferred Deferred Outflows Inflows of Resources of Resources Differences Between Expected and Actual Economic Experience 69,057$ -$ Changes in Actuarial Assumptions 3,267 270,192 Net Difference Between Projected and Actual Investment Earnings - 223,524 Changes in Proportion 58,348 - Contributions Paid to PERA Subsequent to the Measurement Date 74,051 - Total 204,723$ 493,716$ (187,009)$ (27,524) (90,651) (57,860) At December 31, 2024, the City reported deferred outflows of resources and deferred inflows of resources related to pensions from the following sources: The $74,051 reported as deferred outflows of resources related to pensions resulting from the City's contributions subsequent to the measurement date will be recognized as a reduction of the net pension liability in the year ended December 31, 2025. Other amounts reported as deferred outflows and deferred inflows of resources related to pensions will be recognized in pension expense as follows: 2025 2026 2027 For the year ended December 31, 2024, the City recognized pension expense of $115,945 for its proportionate share of the General Employees Plan’s pension expense. In addition, the City recognized an additional $523 as pension expense (and grant revenue) for its proportionate share of the State of Minnesota’s contribution of $16 million to the General Employees Fund. 2028 The net pension liability was measured as of June 30, 2024, and the total pension liability used to calculate the net pension liability was determined by an actuarial valuation as of that date. The City’s proportion of the net pension liability was based on the City’s contributions received by PERA during the measurement period for employer payroll paid dates from July 1, 2023 through June 30, 2024, relative to the total employer contributions received from all of PERA’s participating employers. The City’s proportionate share was 0.0204 percent at the end of the measurement period and 0.0189 percent for the beginning of the period. During the plan year ended June 30, 2024, the State of Minnesota contributed $170.1 million to the General Employees Fund. The State of Minnesota is not included as a non-employer contributing entity in the General Employees Plan pension allocation schedules for the $170.1 million in direct state aid because this contribution was not considered to meet the definition of a special funding situation. The City recognized $34,734 for the year ended December 31, 2024 as revenue and an offsetting reduction of net pension liability for its proportionate share of the State of Minnesota’s on- behalf contributions to the General Employees Fund. 79 City of Albertville, Minnesota Notes to the Financial Statements December 31, 2024 Note 4: Defined Benefit Pension Plans - Statewide (Continued) Police and Fire Fund Pension Costs City's Proportionate Share of the Net Pension Liability 153,052$ State of Minnesota's Proportionate Share of the Net Pension Liability Associated with the City 5,834 Total 158,886$ Deferred Deferred Outflows Inflows of Resources of Resources Differences Between Expected and Actual Economic Experience 56,584$ -$ Changes in Actuarial Assumptions 151,481 213,054 Net Difference Between Projected and Actual Investment Earnings - 48,997 Changes in Proportion 20,229 - Contributions Paid to PERA Subsequent to the Measurement Date 16,040 - Total 244,334$ 262,051$ 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 $28.4 million in supplemental state aid because this contribution was not considered to meet the definition of a special funding situation. The City recognized $3,304 for the year ended December 31, 2024 as revenue and an offsetting reduction of net pension liability for its proportionate share of the State of Minnesota’s on- behalf contributions to the Police and Fire Fund. The State of Minnesota contributed $37.4 million to the Police and Fire Fund in the plan fiscal year ended June 30, 2024. The contribution consisted of $9 million in direct state aid that meets the definition of a special funding situation, additional one-time direct state aid contribution of $19.4 million, and $9 million in supplemental state aid that does not meet the definition of a special funding situation. Additionally, $9 million supplemental state aid was paid on October 1, 2024. 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’s proportionate share of the net pension liability associated with the City totaled $5,834. For the year ended December 31, 2024, the City recognized pension expense of $36,003 for its proportionate share of the Police and Fire Plan’s pension expense. In addition, the City recognized an additional $653 as pension expense (grant revenue) for its proportionate share of the State of Minnesota’s contribution of $9 million to the Police and Fire Fund. At December 31, 2024, the City reported a liability of $153,052 for its proportionate share of the Police and Fire Fund’s net pension liability. The net pension liability was measured as of June 30, 2024, and the total pension liability used to calculate the net pension liability was determined by an actuarial valuation as of that date. The City’s proportionate share of the net pension liability was based on the City’s contributions received by PERA during the measurement period for employer payroll paid dates from July 1, 2023 through June 30, 2024, relative to the total employer contributions received from all of PERA’s participating employers. The City’s proportionate share was 0.0116 percent at the end of the measurement period and 0.011 percent for the beginning of the period. At December 31, 2024, the City reported deferred outflows of resources and deferred inflows of resources related to pensions from the following sources: 80 City of Albertville, Minnesota Notes to the Financial Statements December 31, 2024 Note 4: Defined Benefit Pension Plans - Statewide (Continued) (507)$ 37,185 (19,035) (54,927) 3,527 E. Long-term Expected Return on Investment 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 % 2028 2029 The State Board of Investment, which manages the investments of PERA, prepares an analysis of the reasonableness on a regular basis of the long-term expected rate of return using a building-block method in which best-estimate ranges of expected future rates of return are developed for each major asset class. These ranges are combined to produce an expected long-term rate of return by weighting the expected future rates of return by the target asset allocation percentages. The target allocation and best estimates of geometric real rates of return for each major asset class are summarized in the following table: Long-term Target Expected Return Asset Class Allocation on Investment The $16,040 reported as deferred outflows of resources related to pensions resulting from City contributions subsequent to the measurement date will be recognized as a reduction of the net pension liability in the year ended December 31, 2025. Other amounts reported as deferred outflows and inflows of resources related to pensions will be recognized in pension expense as follows: 2025 2026 2027 81 City of Albertville, Minnesota Notes to the Financial Statements December 31, 2024 Note 4: Defined Benefit Pension Plans - Statewide (Continued) F. Actuarial Assumptions The following changes in actuarial assumptions and plan provisions occurred in 2024: General Employees Fund Changes in Actuarial Assumptions Changes in Plan Provisions - The workers’ compensation offset for disability benefits was eliminated. The actuarial equivalent factors updated to reflect the changes in assumptions. The total pension liability for each of the cost-sharing defined benefit plans was determined by an actuarial valuation as of June 30, 2024, using the entry age normal actuarial cost method. The long-term rate of return on pension plan investments used to determine the total liability is 7.0%. The 7.0% assumption is based on a review of inflation and investment return assumptions from a number of national investment consulting firms. The review provided a range of investment return rates considered reasonable by the actuary. An investment return of 7.0% is within that range. Inflation is assumed to be 2.25% for the General Employees Plan and Police and Fire Plan. Benefit increases after retirement are assumed to be 1.25% for the General Employees Plan and 1.0% for the Police and Fire Plan. Salary growth assumptions in the General Employees Plan range in annual increments from 10.25% after one year of service to 3.0% after 27 years of service. In the Police and Fire Plan, salary growth assumptions range in annual increments from 11.75% after one year of service to 3.0% 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 are based on the Pub-2010 Public Safety Employee Mortality tables. The tables are adjusted slightly to fit PERA’s experience. Actuarial assumptions for the General Employees Plan are reviewed every four years. The General Employees Plan was last reviewed in 2022. The assumption changes were adopted by the board and became effective with the July 1, 2023 actuarial valuation. The Police and Fire Plan were reviewed in 2024. PERA anticipates the experience study will be approved by the Legislative Commission on Pensions and Retirement and become effective with the July 1, 2025 - Rates of merit and seniority were adjusted, resulting in slightly higher rates. - Assumed rates of retirement were adjusted as follows: increase the rate of assumed unreduced retirements, slight adjustments to Rule of 90 retirement rates, and slight adjustments to early retirement rates for Tier 1 and Tier 2 members. - Minor increase in assumed withdrawals for males and females. - Lower rates of disability. - Continued use of Pub-2010 general mortality table with slight rate adjustments as recommended in the most recent experience study. - Minor changes to form of payment assumptions for male and female retirees. - Minor changes to assumptions made with respect to missing participant data. 82 City of Albertville, Minnesota Notes to the Financial Statements December 31, 2024 Note 4: Defined Benefit Pension Plans - Statewide (Continued) Police and Fire Fund Changes in Actuarial Assumptions Changes in Plan Provisions G. Discount Rate H. Pension Liability Sensitivity 1 Percent 1 Percent Decrease (6.0%)Current (7.0%)Increase (8.0%) General Employees Fund 1,648,879$ 754,926$ 19,567$ Police and Fire Fund 361,692 153,052 (18,285) I. Pension Plan Fiduciary Net Position - The State contribution of $9 million per year will continue until the earlier of 1) both the Police and Fire Plan and the State Patrol Retirement Fund attain 90.0 percent funded status for three consecutive years (on an actuarial value of assets basis) or 2) July 1, 2048. The contribution was previously due to expire after attaining a 90.0 percent funded status for one year. - The additional $9 million contribution will continue until the Police and Fire Plan is fully funded for a minimum of three consecutive years on an actuarial value of assets basis, or July 1, 2048, whichever is earlier. This contribution was previously due to expire upon attainment of fully funded status on an actuarial value of assets basis for one year (or July 1, 2048 if earlier). Detailed information about each pension plan’s fiduciary net position is available in a separately issued PERA financial report that includes financial statements and required supplementary information. That report may be obtained on the Internet at www.mnpera.org. The discount rate used to measure the total pension liability in 2024 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 Plans 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. The following presents the City’s proportionate share of the net pension liability for all plans it participates in, calculated using the discount rate disclosed in the preceding paragraph, as well as what the City’s proportionate share of the net pension liability would be if it were calculated using a discount rate one percentage point lower or one percentage point higher than the current discount rate: - There were no changes in actuarial assumptions since the previous valuation. 83 City of Albertville, Minnesota Notes to the Financial Statements December 31, 2024 Note 5: Public Employees Defined Contribution Plan (Defined Contribution Plan) Elected Officials are covered by the Defined Contribution Plan, a multiple-employer deferred compensation plan administered by PERA. The Defined Contribution Plan is a tax qualified plan under Section 401(a) of the Internal Revenue Code and all contributions by or on behalf of employees are tax deferred until time of withdrawal. Plan benefits depend solely on amounts contributed to the plan plus investment earnings, less administrative expenses. Minnesota Statutes, Chapter 353D.03, specifies plan provisions, including the employee and employer contribution rates for those qualified personnel who elect to participate. An eligible elected official who decides to participate contributes five percent of salary which is matched by the elected official's employer. Employer contributions for volunteer personnel may be a unit value for each call or period of alert duty. Employees who are paid for their services may elect to make member contributions in an amount not to exceed the employer share. Employer and employee contributions are combined and used to purchase shares in one or more of the seven accounts of the Minnesota Supplemental Investment Fund. For administering the plan, PERA receives 2.0 percent of employer contributions and twenty-five hundredths of 1.0 percent (0.25 percent) of the assets in each member's account annually. Total contributions made by the City during the fiscal year 2024 was $120 Note 6: Defined Benefit Pension Plans - Fire Relief Association A. Plan Description All members of the Albertville Fire Department (the Department) are covered by a defined benefit plan administered by the Albertville Fireman’s Relief Association (the Association). As of December 31, 2024, the plan covered 25 active firefighters and 4 vested terminated fire fighters whose pension benefits are deferred. The plan is a single employer retirement plan and is established and administered in accordance with Minnesota statute, chapter 69. The Association maintains a separate Special fund to accumulate assets to fund the retirement benefits earned by the Department’s membership. Funding for the Association is derived from an insurance premium tax in accordance with the Volunteer Firefighter’s Relief Association Financing Guidelines Act of 1971 (chapter 261 as amended by chapter 509 of Minnesota statutes 1980). Funds are also derived from investment income. B. Benefits Provided A firefighter who completes at least 20 years as an active member of the Department is entitled, after age 50, to a full- service pension upon retirement. The bylaws of the Association also provide for an early vested service pension for a retiring member who has completed fewer than 20 years of service. The reduced pension, available to members with 10 years of service, shall be equal to 60 percent of the pension as prescribed by the bylaws. This percentage increases 4 percent per year so that at 20 years of service, the full amount prescribed is paid. Members who retire with less than 20 years of service and have reached the age of 50 years and have completed at least 10 years of active membership are entitled to a reduced service pension not to exceed the amount calculated by multiplying the member's service pension for the completed years of service times the applicable non-forfeitable percentage of pension. C. Contributions Minnesota statutes, chapters 424 and 424A authorize pension benefits for volunteer fire relief associations. The plan is funded by fire state aid, investment earnings and, if necessary, employer contributions as specified in Minnesota statutes and voluntary City contributions (if applicable). The State of Minnesota contributed in fire state aid to the plan on behalf of the Albertville Fire Department for the year ended December 31, 2023, 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. 84 City of Albertville, Minnesota Notes to the Financial Statements December 31, 2024 Note 6: Defined Benefit Pension Plans - Fire Relief Association (Continued) D. Pension Costs At December 31, 2024, the City reported a net pension liability (asset) of ($156,539) for the Volunteer Firefighter Fund. The net pension asset was measured as of December 31, 2024. The total pension asset used to calculate the net pension asset in accordance with GASB 68 was determined by PERA applying an actuarial formula to specific census data certified by the Department. The following table presents the changes in net pension liability (asset) during the year. Total Plan Net Pension Fiduciary Pension Liability Net Position Liability (Asset) (a)(b)(a-b) Beginning Balance January 1, 2024 763,438$ 989,372$ (225,934)$ Changes for the Year Service cost 49,874 - 49,874 Interest cost 40,601 - 40,601 Assumption changes - - - Plan changes 209,864 - 209,864 Nonemployer Contributions 134,452 (134,452) Projected investment earnings - 53,939 (53,939) Gain or Loss - 44,081 (44,081) Benefit payouts (150,232) (150,232) - Administrative costs - (1,528) 1,528 Total Net Changes 150,107 80,712 69,395 Ending Balance December 31, 2024 913,545$ 1,070,084$ (156,539)$ For the year ended December 31, 2024, the City recognized a pension expense of $237,153. At December 31, 2024, the City reported deferred inflows of resources and deferred outflows of resources, its contributions subsequent to the measurement date, related to pension from the following sources: Deferred Deferred Outflows Inflows of Resources of Resources Differences Between Expected and Actual Experience -$ 27,518$ Changes in Actuarial Assumptions 5,755 18,390 Investment Losses 78,726 - Contributions to Plan Subsequent to the Measurement Date 162,670 - Total 247,151$ 45,908$ 85 City of Albertville, Minnesota Notes to the Financial Statements December 31, 2024 Note 6: Defined Benefit Pension Plans - Fire Relief Association (Continued) Deferred outflows of resources totaling $162,670 related to pensions resulting from the City’s contributions to the plan subsequent to the measurement date will be recognized as a reduction of the net pension asset in the year ended December 31, 2025. Other amounts reported as deferred outflows of resources related to the plan will be recognized in pension expense as follows: 13,697$ 20,252 28,519 (11,371) (2,559) Thereafter (9,965) 2025 2026 2027 2028 2029 E. Actuarial Assumptions The total pension asset at December 31, 2024 was determined using the entry age normal actuarial cost method and the following actuarial assumptions: Discount Rate GASB Accounting: 5.50% (net of investment expenses) Expected Long-Term Investment Return 5.50% 20-Year Municipal Bond Yield)N/A (no unfunded liabilities) Salary Increases 2.50% Interest on Deferred Amount 0.00% future annual increase to eligible deferred pension amounts Future benefit level increases N/A The long-term expected rate of return on pension plan investments was determined using a building-block method in which best estimates for expected future real rates of return (expected returns, net of inflation) were developed for each asset class using the plan’s target investment allocation along with long-term return expectations by asset class. Inflation expectations were applied to derive the nominal rate of return for the portfolio. The target allocation and best estimates of geometric real rates of return for each major asset class are summarized in the following table: Asset Class Cash 19.00 %2.00 % Fixed Income 26.00 2.90 Equities 54.00 8.00 Other 1.00 6.00 Total 100.00 % Long-term Target Expected Real Allocation Rate of Return 86 City of Albertville, Minnesota Notes to the Financial Statements December 31, 2024 Note 6: 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. Pension Liability Sensitivity The following presents the City’s net pension liability (asset) for the plan, calculated using the discount rate disclosed in the preceding paragraph, as well as what the City’s net pension liability (asset) would be if it were calculated using a discount rate one percent lower or one percent higher than the current discount rate: 1 Percent 1 Percent Decrease (4.50%)Current (5.50%)Increase (6.50%) Defined Benefit Plan (117,052)$ (156,539)$ (194,406)$ H. Pension Plan Fiduciary Net Position The Association issues a publicly available financial report. The report may be obtained by writing to the Albertville Firemen’s Relief Association, 5959 Main Avenue NE Albertville, Minnesota, 55301. 87 City of Albertville, Minnesota Notes to the Financial Statements December 31, 2024 Note 7: 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 2023, the most recent available, is summarized below. Separate financial statements can be obtained by writing to the Joint Powers Water Board, 11100 50th Street NE, Albertville, Minnesota 55301. Joint Powers Water Board Statement of Net Position December 31, 2023 Assets and Deferred Outflow of Resources 36,102,186$ Liabilities 2,962,337$ Net Position 33,139,849 Total Liabilities and Net Position 36,102,186$ Joint Powers Water Board Summary Statement of Activities For the Year Ended December 31, 2023 Operating Revenues 3,459,006$ Operating Expenses 2,999,687 Operating Income 459,319 Net Nonoperating Revenues 1,627,794 Change in Net Position 2,087,113 Net Position, January 1 31,052,736 Net Position, December 31 33,139,849$ 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. 88 City of Albertville, Minnesota Notes to the Financial Statements December 31, 2024 Note 7: Joint Ventures (Continued) The City has an ongoing one-sixth equity financial interest of $284,291 as of December 31, 2024. Separate financial statements can be obtained by contacting Tina Lannes, Finance Director at Albertville City Hall. St. Michael - Albertville Ice Arena Statement of Net Position December 31, 2024 Assets 1,897,593$ Liabilities 28,876$ Net Position 1,868,717 Total Liabilities and Net Position 1,897,593$ St. Michael - Albertville Ice Arena Summary Statement of Activities December 31, 2024 Program Revenues 940,592$ Expenses (851,444) Interest Revenue 26,886 Change in Net Position 116,034 Net Position, January 1 1,752,683 Net Position, December 31 1,868,717$ Note 8: Other Information A. Risk Management The City is exposed to various risks of loss related to torts; theft of, damage to and destruction of assets; errors and omissions; injuries to employees; and natural disasters for which the City carries insurance. The City obtains insurance through participation in the League of Minnesota Cities Insurance Trust (LMCIT), which is a risk sharing pool with approximately 800 other governmental units. The City pays an annual premium to LMCIT for its workers compensation and property and casualty insurance. The LMCIT is self-sustaining through member premiums and will reinsure for claims above a prescribed dollar amount for each insurance event. Settled claims have not exceeded the City’s coverage in any of the past three fiscal years. Liabilities are reported when it is probable that a loss has occurred and the amount of the loss can be reasonably estimated. An excess coverage insurance policy covers individual claims in excess of $1,000,000. Liabilities, if any, include an amount for claims that have been incurred but not reported (IBNRs). The City’s management is not aware of any incurred but not reported claims. 89 City of Albertville, Minnesota Notes to the Financial Statements December 31, 2024 Note 8: Other Information (Continued) B. Legal Debt Margin In accordance with Minnesota statutes, the City may not incur or be subject to net debt in excess of three percent of the market value of taxable property within the City. Net debt is payable solely from ad valorem taxes and, therefore, excludes debt financed partially or entirely by special assessments, enterprise fund revenues or tax increments. The City’s applicable debt does not exceed the limit. C. Conduit Debt Obligations Conduit debt obligations are certain limited-obligation revenue bonds or similar debt instruments issued for the express purpose of providing capital financing for a specific third party. The City has issued revenue bonds to provide financial assistance to private-sector entities for projects deemed to be in the public interest. Although these bonds bear the name of the City, the City, the State, nor any political subdivision thereof is obligated in any manner for repayment of the bonds. Accordingly, the bonds are not reported as liabilities in the accompanying financial statements. Authorized Balance at and Issued Year End Multifamily Housing Revenue Refunding Bonds, Series 2007 3,540,000$ 2,570,000$ Multifamily Housing Revenue Bonds, Series 2010 A 4,750,000 3,670,000 Multifamily Housing Revenue Bonds, Series 2010 B 3,300,000 3,193,928 Total Conduit Debt 11,590,000$ 9,433,928$ Description D. Tax Increment Financing Districts The City’s tax increment districts are subject to review by the State of Minnesota Office of the State Auditor (OSA). Any disallowed claims or misuse of tax increments could become a liability of the applicable fund. Management has indicated that they are not aware of any instances of noncompliance which would have a material effect on the financial statements. E. Commitment Cost Sharing Agreement The City has entered into a cost sharing agreement for the construction and maintenance of a library with the City of St. Michael, Minnesota. The library net cost is split based on the pro rata average of population and market value. F. Change in Accounting Principle During fiscal year 2024, the City adopted the provisions of Governmental Accounting Standard Board (GASB) Statement No. 101, Compensated Absences, for the year ended December 31, 2024. Adoption of the provisions of this statement results in significant change to the classifications of the components of the financial statements. There were no adjustments or restatements of beginning balances needed for the adoption of these statements. 90 REQUIRED SUPPLEMENTARY INFORMATION CITY OF ALBERTVILLE ALBERTVILLE, MINNESOTA FOR THE YEAR ENDED DECEMBER 31, 2024 91 Schedule of Employer’s Share of PERA Net Pension Liability - General Employees Fund State's Proportionate City's Share of Proportionate the Net Pension Share of Liability City's Fiscal the Net Pension Associated with Covered Year Liability the City Total Payroll Ending (a)(b)(a+b)(c) 6/30/2024 0.0204 %754,926$ 19,521$ 774,447$ 1,728,282$ 43.7 %86.7 % 6/30/2023 0.0189 1,056,867 29,103 1,085,970 1,504,289 70.3 83.1 6/30/2022 0.0181 1,433,526 41,958 1,475,484 1,354,549 105.8 76.7 6/30/2021 0.0181 772,951 23,664 796,615 1,306,061 59.2 87.0 6/30/2020 0.0174 1,043,210 32,283 1,075,493 1,244,313 83.8 79.0 6/30/2019 0.0161 890,133 27,665 917,798 1,133,606 78.5 80.2 6/30/2018 0.0147 815,496 26,781 842,277 986,845 82.6 79.5 6/30/2017 0.0151 963,974 12,125 976,099 1,010,559 95.4 75.9 6/30/2016 0.0155 1,258,523 16,464 1,274,987 921,545 136.6 68.9 6/30/2015 0.0150 777,378 - 777,378 866,860 89.7 78.2 Schedule of Employer’s PERA Contributions - General Employees Fund Contributions in Relation to the Contributions as Statutorily Statutorily Contribution City's a Percentage of Required Required Deficiency Covered Covered Year Contribution Contribution (Excess)Payroll Payroll Ending (a)(b)(a-b)(c)(b/c) 12/31/2024 140,213$ 140,213$ -$ 1,869,511$ 7.50 % 12/31/2023 122,281 122,281 - 1,630,410 7.50 12/31/2022 106,351 106,351 - 1,418,015 7.50 12/31/2021 99,408 99,408 - 1,325,438 7.50 12/31/2020 95,790 95,790 - 1,277,201 7.50 12/31/2019 90,361 90,361 - 1,204,809 7.50 12/31/2018 77,347 77,347 - 1,031,293 7.50 12/31/2017 72,910 72,910 - 972,129 7.50 12/31/2016 72,244 72,244 - 963,255 7.50 12/31/2015 66,929 66,929 - 892,386 7.50 Liability as a the Net Pension Payroll of the Total Liability (a/c)Pension Liability City of Albertville, Minnesota Required Supplementary Information For the Year Ended December 31, 2024 Net Position Proportion of Percentage of as a PercentageCovered City's Proportionate Share of the Net Pension Plan Fiduciary City's 92 Notes to the Required Supplementary Information - General Employee Retirement Fund Required Supplementary Information (Continued) For the Year Ended December 31, 2024 Changes in Actuarial Assumptions 2024 - The following changes in assumptions are effective with the July 1, 2024 valuation, as recommended in the most recent experience study (dated June 29, 2023): Rates of merit and seniority were adjusted, resulting in slightly higher rates. Assumed rates of retirement were adjusted as follows: increase the rate of assumed unreduced retirements, slight adjustments to Rule of 90 retirement rates, and slight adjustments to early retirement rates for Tier 1 and Tier 2 members. Minor increase in assumed withdrawals for males and females. Lower rates of disability. Continued use of Pub-2010 general mortality table with slight rate adjustments as recommended in the most recent experience study. Minor changes to form of payment assumptions for male and female retirees. Minor changes to assumptions made with respect to missing participant data. 2023 - The investment return and single discount rates were changed from 6.5 percent to 7.0 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 mortality 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. City of Albertville, Minnesota 93 Required Supplementary Information (Continued) For the Year Ended December 31, 2024 City of Albertville, Minnesota Notes to the Required Supplementary Information - General Employee Retirement Fund (Continued) Changes in Plan Provisions 2024 - The workers’ compensation offset for disability benefits was eliminated. The actuarial equivalent factors updated to reflect the changes in assumptions. 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 million per year. The state’s special funding contribution was changed prospectively, requiring $16.0 million due per year through 2031. 2018 - The augmentation adjustment in early retirement factors is eliminated over a five-year period starting July 1, 2019, resulting in actuarial equivalence after June 30, 2024. Interest credited on member contributions decreased from 4.0 percent to 3.0 percent, beginning July 1, 2018. Deferred augmentation was changed to 0.0 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 1.0 percent per year with a provision to increase to 2.5 percent upon attainment of 90.0 percent funding ratio to 50.0 percent of the Social Security Cost of Living Adjustment, not less than 1.0 percent and not more than 1.5 percent, beginning January 1, 2019. For retirements on or after January 1, 2024, the first benefit increase is delayed until the retiree reaches normal retirement age; does not apply to Rule of 90 retirees, disability benefit recipients, or survivors. Actuarial equivalent factors were updated to reflect revised mortality and interest assumptions. 2017 - The State’s contribution for the Minneapolis Employees Retirement Fund equals $16,000,000 in 2017 and 2018, and $6,000,000 thereafter. The Employer Supplemental Contribution for the Minneapolis Employees Retirement Fund changed from $21,000,000 to $31,000,000 in calendar years 2019 to 2031. The state’s contribution changed from $16,000,000 to $6,000,000 in calendar years 2019 to 2031. 2016 - There were no changes in plan provisions since the previous valuation. 2015 - On January 1, 2015, the Minneapolis Employees Retirement Fund was merged into the General Employees Fund, which increased the total pension liability by $1.1 billion and increased the fiduciary plan net position by $892 million. Upon consolidation, state and employer contributions were revised. 94 Required Supplementary Information (Continued) For the Year Ended December 31, 2024 City of Albertville, Minnesota Schedule of Employer’s Share of PERA Net Pension Liability - Police and Fire Fund State's Proportionate City's Share of Proportionate the Net Pension Share of Liability City's Fiscal the Net Pension Associated with Covered Year Liability the City Total Payroll Ending (a)(b)(a+b)(c) 6/30/2024 0.0116 %153,052$ 5,834$ 158,886$ 161,095$ 95.0 %87.0 % 6/30/2023 0.0110 189,956 7,690 197,646 144,548 131.4 86.5 6/30/2022 0.0106 461,270 20,036 481,306 128,217 359.8 70.5 6/30/2021 0.0102 78,733 3,520 82,253 120,137 65.5 93.7 6/30/2020 0.0099 130,493 3,064 133,557 111,109 117.4 87.2 6/30/2019 0.0090 95,814 - 95,814 95,184 100.7 89.3 6/30/2018 0.0088 93,799 - 93,799 96,188 97.5 88.8 6/30/2017 0.0090 121,511 - 121,511 89,111 136.4 85.4 6/30/2016 0.0090 361,186 - 361,186 84,960 425.1 63.9 6/30/2015 0.0090 102,261 - 102,261 16,590 616.4 86.6 Schedule of Employer’s PERA Contributions - Police and Fire Fund Contributions in Relation to the Contributions as Statutorily Statutorily Contribution City's a Percentage of Required Required Deficiency Covered Covered Year Contribution Contribution (Excess)Payroll Payroll Ending (a)(b)(a-b)(c)(b/c) 12/31/2024 30,694$ 30,694$ -$ 173,415$ 17.70 % 12/31/2023 27,424 27,424 - 154,936 17.70 12/31/2022 23,827 23,827 - 134,618 17.70 12/31/2021 21,738 21,738 - 122,814 17.70 12/31/2020 20,812 20,812 - 117,583 17.70 12/31/2019 17,055 17,055 - 100,617 16.95 12/31/2018 15,197 15,197 - 93,809 16.20 12/31/2017 14,820 14,820 - 91,482 16.20 12/31/2016 14,111 14,111 - 87,106 16.20 12/31/2015 9,943 9,943 - 61,378 16.20 City's Percentage of Net Position Liability (a/c)Pension Liability Proportion of Covered as a Percentage the Net Pension Payroll of the Total Share of the Net Pension Liability as a Plan Fiduciary Proportionate City's 95 Required Supplementary Information (Continued) For the Year Ended December 31, 2024 City of Albertville, Minnesota Notes to the Required Supplementary Information - Police and Fire Fund Changes in Actuarial Assumptions 2024 - There were no changes in actuarial assumptions since the previous valuation. 2023 - 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. 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 7.5 percent to 6.5 percent, for financial reporting purposes. The inflation assumption was changed from 2.5 percent to 2.25 percent. The payroll growth assumption was changed from 3.25 percent to 3.0 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 60.0 percent to 70.0 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 mortality projection scale was changed from MP-2016 to MP-2017. 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 1.0 percent for all years to 1.0 percent per year through 2064 and 2.5 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 2.5 percent for inflation. 2015 - The assumed post-retirement benefit increase rate was changed from 1.0 percent per year through 2030 and 2.5 percent per year thereafter to 1.0 percent per year through 2037 and 2.5 percent per year thereafter. 96 Required Supplementary Information (Continued) For the Year Ended December 31, 2024 City of Albertville, Minnesota Notes to the Required Supplementary Information - Police and Fire Fund (Continued) Changes in Plan Provisions 2024 - The State contribution of $9.0 million per year will continue until the earlier of 1) both the Police and Fire Plan and the State Patrol Retirement Fund attain 90.0 percent funded status for three consecutive years (on an actuarial value of assets basis) or 2) July 1, 2048. The contribution was previously due to expire after attaining a 90.0 percent funded status for one year. The additional $9.0 million contribution will continue until the Police and Fire Plan is fully funded for a minimum of three consecutive years on an actuarial value of assets basis, or July 1, 2048, whichever is earlier. This contribution was previously due to expire upon attainment of fully funded status on an actuarial value of assets basis for one year (or July 1, 2048 if earlier). 2023 - 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 psychological condition relating to the member’s occupation. The total and permanent duty disability was 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 million state contribution. New annual state aid will equal $4.5 million in fiscal years 2019 and 2020, and $9 million thereafter until the plan reaches 100 percent funding, or July 1, 2048, if earlier. Member contributions were changed from 10.8 percent to 11.3 percent of pay, effective January 1, 2019 and 11.8 percent of pay, effective January 1, 2020. Employer contributions were changed from 16.2 percent to 16.95 percent of pay, effective January 1, 2019 and 17.7 percent of pay, effective January 1, 2020. Interest credited on member contributions decreased from 4.0 percent to 3.0 percent, beginning July 1, 2018. Deferred augmentation was changed to 0.0 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 30.0 percent for vested and non-vested, deferred members. The CSA has been changed to 33.0 percent for vested members and 2.0 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 65.0 percent to 60.0 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 1.0 percent for all years to 1.0 percent per year through 2064 and 2.5 percent thereafter. The single discount rate was changed from 5.6 percent per annum to 7.5 percent per annum. 2016 - There were no changes in plan provisions since the previous valuation. 2015 - The post-retirement benefit increase to be paid after attainment of the 90 percent funding threshold was changed, from inflation up to 97 City of Albertville, Minnesota Required Supplementary Information (Continued) For the Year Ended December 31, 2024 Schedule of Changes in the Fire Relief Association’s Net Pension Liability (Asset) and Related Ratios 2024 2023 2022 2021 2020 2019 2018 2017 2016 2015 Total Pension Liability Service cost 49,874$ 50,134$ 42,301$ 33,673$ 32,852$ 32,747$ 29,490$ 15,570$ 16,177$ 14,820$ Interest on pension liability (asset)40,601 37,634 33,394 33,067 34,839 31,217 27,065 30,956 32,273 35,420 Changes of benefit terms 209,864 43,852 108,435 77,330 - 37,505 40,146 104,288 - - Gain or loss - (19,589) - (3,488) - (5,308) - (40,750) - - Changes of assumptions - (13,630) - 10,363 - (9,656) - (21,365) - - Benefit payments (150,232) (75,000) (139,338) (46,480) (155,000) - (33,851) (41,296) (127,238) - Net Change in Total Pension Liability 150,107 23,401 44,792 104,465 (87,309) 86,505 62,850 47,403 (78,788) 50,240 Total Pension Liability - January 1 763,438 740,037 695,245 590,780 678,089 591,584 528,734 481,331 560,119 509,879 Total Pension Liability - December 31 (a)913,545$ 763,438$ 740,037$ 695,245$ 590,780$ 678,089$ 591,584$ 528,734$ 481,331$ 560,119$ Plan Fiduciary Net Position Employer contributions -$ -$ -$ -$ -$ -$ -$ -$ -$ 11,877$ Nonemployer contributions 134,452 111,566 95,777 88,875 79,430 67,699 65,732 69,454 65,940 37,411 Projected investment return 53,939 56,172 53,250 - 46,140 44,300 37,625 45,246 46,826 45,479 Gain (loss)44,081 (207,778)10,344 86,458 107,361 (85,101) 48,772 (15,836) (53,155) (16,151) Benefit payments (150,232) (75,000) (139,338) (46,480) (155,000) - (33,851) (41,296) (127,238) - Administrative expenses (1,528) (1,498) (1,810) (1,498) (2,513) (2,182) (3,204) (2,835) - (5,205) Other - - - 6,966 - - - - - - Net Change in Plan Fiduciary Net Position 80,712 (116,538) 18,223 134,321 75,418 24,716 115,074 54,733 (67,627) 73,411 Plan Fiduciary Net Position - January 1 989,372 1,105,910 1,087,687 953,366 877,948 853,232 738,158 683,425 751,052 677,641 Plan Fiduciary Net Position - December 31 (b)1,070,084$ 989,372$ 1,105,910$ 1,087,687$ 953,366$ 877,948$ 853,232$ 738,158$ 683,425$ 751,052$ Fire Relief's Net Pension Liability (Asset) - December 31 (a-b)(156,539)$ (225,934)$ (365,873)$ (392,442)$ (362,586)$ (199,859)$ (261,648)$ (209,424)$ (202,094)$ (190,933)$ Plan Fiduciary Net Position as a Percentage of the Total Pension Liability (b/a)117.14% 129.59% 149.44% 156.45% 161.37% 129.47% 144.23% 139.61% 141.99% 134.09% Covered-employee Payroll N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A Fire Relief's Net Pension Liability (Asset) as a Percentage of Covered-employee Payroll N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A Notes to the Schedule: Changes of Benefits - The Benefit Level changed from $4,200 to $5,400. The threshold for partial vesting changed from 10 years of service to 5 years of service. Changes of Assumptions - None for 2024 Changes of Plan Provisions - None for 2024 . 98 City of Albertville, Minnesota Required Supplementary Information (Continued) For the Year Ended December 31, 2024 Schedule of Employer’s Fire Relief Association Contributions Actuarial Actual Contribution Determined Contributions Deficiency Year Contribution Paid (Excess) Ending (a)(b)(a-b) 12/31/24 162,670$ 162,670$ -$ 12/31/23 131,452 131,452 - 12/31/22 110,566 110,566 - 12/31/21 91,777 91,777 - 12/31/20 92,750 92,750 - 12/31/19 93,326 93,326 - 12/31/18 65,732 65,732 - 12/31/17 64,732 64,732 - 12/31/16 47,401 47,401 - 12/31/15 165,022 165,022 - 99 THIS PAGE IS LEFT BLANK INTENTIONALLY 100 COMBINING AND INDIVIDUAL FUND FINANCIAL STATEMENTS AND SCHEDULES CITY OF ALBERTVILLE ALBERTVILLE, MINNESOTA FOR THE YEAR ENDED DECEMBER 31, 2024 101 THIS PAGE IS LEFT BLANK INTENTIONALLY 102 NONMAJOR GOVERNMENTAL FUNDS CITY OF ALBERTVILLE ALBERTVILLE, MINNESOTA FOR THE YEAR ENDED DECEMBER 31, 2024 103 City of Albertville, Minnesota Nonmajor Governmental Funds Combining Balance Sheet December 31, 2024 Total Special Capital Nonmajor Revenue Projects Funds Assets Cash and temporary investments 555,689$ 1,362,306$ 1,917,995$ Liabilities Advances from other funds -$ 884,481$ 884,481$ Unearned revenue 128,927 - 128,927 Total Liabilities 128,927 884,481 1,013,408 Fund Balances Restricted 259,490 1,356,700 1,616,190 Committed 167,272 - 167,272 Unassigned - (878,875) (878,875) Total Fund Balances 426,762 477,825 904,587 Total Liabilities and Fund Balances 555,689$ 1,362,306$ 1,917,995$ 104 City of Albertville, Minnesota Nonmajor Governmental Funds Combining Statement of Revenues, Expenditures and Changes in Fund Balances For the Year Ended December 31, 2024 Total Special Capital Nonmajor Revenue Projects Funds Revenues Tax increments -$ 627,846$ 627,846$ Intergovernmental 2,224 - 2,224 Investment earnings 6,926 51,549 58,475 Miscellaneous 259,490 - 259,490 Total Revenues 268,640 679,395 948,035 Expenditures Current General government 1,200 - 1,200 Economic development - 448,586 448,586 Culture and recreation - 7,353 7,353 Debt service Interest - 10,772 10,772 Total Expenditures 1,200 466,711 467,911 Excess (Deficiency) of Revenues Over (Under) Expenditures 267,440 212,684 480,124 Other Financing Sources (Uses) Transfers in - 1,516 1,516 Net Change in Fund Balances 267,440 214,200 481,640 Fund Balances, January 1 159,322 263,625 422,947 Fund Balances, December 31 426,762$ 477,825$ 904,587$ 105 THIS PAGE IS LEFT BLANK INTENTIONALLY 106 NONMAJOR SPECIAL REVENUE FUNDS Special revenue funds are established to account for specific revenue or other sources that are designated for financing particular functions or activities as required by deferral regulations, Minnesota statue, City charter provisions, local ordinances, or specific gran agreements. Most of the special revenue funds are related to specific Federal and State housing programs or grants for specific activities. Economic Development Loan - 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. 107 104 205 207 208 Economic Development Election Charitable Loan Fund ARPA Resources Gambling Total Assets Cash and temporary investments 165,673$ 128,927$ 1,599$ 259,490$ 555,689$ Liabilities Unearned revenue -$ 128,927$ -$ -$ 128,927$ Fund Balances Restricted - - - 259,490 259,490 Committed 165,673 - 1,599 - 167,272 Total Fund Balances 165,673 - 1,599 259,490 426,762 Total Liabilities and Fund Balances 165,673$ 128,927$ 1,599$ 259,490$ 555,689$ Special Revenue City of Albertville, Minnesota Nonmajor Special Revenue Funds Combining Balance Sheet December 31, 2024 108 104 205 207 208 Economic Development Election Charitable Loan Fund ARPA Resources Gambling Total Revenues Intergovernmental -$ -$ 2,224$ -$ 2,224$ Investment earnings 6,926 - - - 6,926 Miscellaneous - - - 259,490 259,490 Total Revenues 6,926 - 2,224 259,490 268,640 Expenditures General government - - 1,200 - 1,200 Net Change in Fund Balances 6,926 - 1,024 259,490 267,440 Fund Balances, January 1 158,747 - 575 - 159,322 Fund Balances, December 31 165,673$ -$ 1,599$ 259,490$ 426,762$ Special Revenue City of Albertville, Minnesota Nonmajor Special Revenue Funds Combining Statement of Revenues, Expenditures and Changes in Fund Balances For the Year Ended December 31, 2024 109 THIS PAGE IS LEFT BLANK INTENTIONALLY 110 NONMAJOR CAPITAL PROJECTS FUNDS Capital projects funds are used to account for the acquisition and construction of major capital facilities other than those financed by enterprise funds. 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. Charitable Gambling -This fund was created for the purposes of managing and directing funds to support public welfare initiatives and community-based projects that align with the goals of promoting social good, health, education, and other charitable endeavors within the city. 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. TIF #21 Medart – This fund was created to facilitate the Medart project within the city. This fund accounts for the financial activity related to that project. 111 201 407 412 415 TIF #7 TIF #12 TIF #15 Park Senior Schultz &Guardian Fund Housing Schupp Angels Assets Cash and temporary investments 1,004,580$ 96,686$ -$ 98,852$ Liabilities Advances from other funds -$ -$ 420$ -$ Fund Balances Restricted 1,004,580 96,686 - 98,852 Unassigned - - (420) - Total Fund Balances 1,004,580 96,686 (420) 98,852 Total Liabilities and Fund Balances 1,004,580$ 96,686$ -$ 98,852$ City of Albertville, Minnesota Nonmajor Capital Projects Funds Combining Balance Sheet December 31, 2024 112 416 417 418 419 420 421 TIF #16 TIF #17 TIF #18 TIF #19 TIF #20 TIF #21 Mold Old Scherer Tech Castle AVA Fehn Brothers Medart Total -$ 2,874$ 139,265$ 17,317$ 2,732$ -$ 1,362,306$ -$ 234,173$ -$ -$ 638,000$ 11,888$ 884,481$ - - 139,265 17,317 - - 1,356,700 - (231,299) - - (635,268) (11,888) (878,875) - (231,299) 139,265 17,317 (635,268) (11,888) 477,825 -$ 2,874$ 139,265$ 17,317$ 2,732$ -$ 1,362,306$ 113 201 407 412 415 TIF #7 TIF #12 TIF #15 Park Senior Schultz &Guardian Fund Housing Schupp Angels Revenues Tax increments -$ 73,759$ -$ 98,962$ Investment earnings (loss)42,321 2,831 - 2,503 Total Revenues 42,321 76,590 - 101,465 Expenditures Current Economic development - 65,934 206 82,223 Culture and recreation 7,353 - - - Debt service Interest - - - - Total Expenditures 7,353 65,934 206 82,223 Excess (Deficiency) of Revenues Over (Under) Expenditures 34,968 10,656 (206) 19,242 Other Financing Sources Transfers in - - - - Net Change in Fund Balances 34,968 10,656 (206) 19,242 Fund Balances, January 1 969,612 86,030 (214) 79,610 Fund Balances, December 31 1,004,580$ 96,686$ (420)$ 98,852$ City of Albertville, Minnesota Nonmajor Capital Projects Funds Combining Statement of Revenues, Expenditures and Changes in Fund Balances For the Year Ended December 31, 2024 114 416 417 418 419 420 421 TIF #16 TIF #17 TIF #18 TIF #19 TIF #20 TIF #21 Mold Old Scherer Tech Castle AVA Fehn Brothers Medart Total 28,033$ 57,599$ 245,470$ 34,737$ 89,286$ -$ 627,846$ 337 1,682 - - 1,875 - 51,549 28,370 59,281 245,470 34,737 91,161 - 679,395 32,281 206 231,373 17,206 7,269 11,888 448,586 - - - - - - 7,353 - 10,772 - - - - 10,772 32,281 10,978 231,373 17,206 7,269 11,888 466,711 (3,911) 48,303 14,097 17,531 83,892 (11,888) 212,684 1,516 - - - - - 1,516 (2,395) 48,303 14,097 17,531 83,892 (11,888) 214,200 2,395 (279,602) 125,168 (214) (719,160) - 263,625 -$ (231,299)$ 139,265$ 17,317$ (635,268)$ (11,888)$ 477,825$ 115 Total Nonmajor Storm Water Recycling Funds Assets Current Assets Cash and temporary investments 1,159,614$ 55,225$ 1,214,839$ Receivables Accounts 22,976 1,468 24,444 Delinquent special assessments 36 - 36 Special assessments, current portion - 16 16 Due from other governments - 2,588 2,588 Prepaid items 2,305 - 2,305 Total Current Assets 1,184,931 59,297 1,244,228 Noncurrent Assets Advances to other funds 36,000 - 36,000 Capital Assets Land 146,112 - 146,112 Infrastructure 1,509,297 - 1,509,297 Vehicles 69,177 - 69,177 Less: Accumulated depreciation (533,023) - (533,023) Net Capital Assets 1,191,563 - 1,191,563 Total Noncurrent Assets 1,227,563 - 1,227,563 Total Assets 2,412,494 59,297 2,471,791 Deferred Outflows of Resources Deferred pension resources 16,892 23 16,915 Business-type Activities - Enterprise Funds City of Albertville, Minnesota Statement of Net Position Nonmajor Proprietary Funds December 31, 2024 The notes to the financial statements are an integral part of this statement. 116 Total Nonmajor Storm Water Recycling Funds Liabilities Current Liabilities Accounts and contracts payable 2,727$ 358$ 3,085$ Accrued salaries payable 1,844 88 1,932 Unearned revenue - 2,588 2,588 Compensated absences payable, current portion 29,007 - 29,007 Total Current Liabilities 33,578 3,034 36,612 Noncurrent Liabilities Compensated absences payable 9,669 - 9,669 Net pension liability 63,029 1,208 64,237 Total Noncurrent Liabilities 72,698 1,208 73,906 Total Liabilities 106,276 4,242 110,518 Deferred Inflows of Resources Deferred pension resources 39,174 35 39,209 Net Position Investment in capital assets 1,191,563 - 1,191,563 Unrestricted 1,092,373 55,043 1,147,416 Total Net Position 2,283,936$ 55,043$ 2,338,979$ Statement of Net Position (Continued) Business-type Activities - Enterprise Funds Nonmajor Proprietary Funds December 31, 2024 City of Albertville, Minnesota The notes to the financial statements are an integral part of this statement. 117 THIS PAGE IS LEFT BLANK INTENTIONALLY 118 Total Nonmajor Storm Water Recycling Funds Operating Revenues Charges for services 277,554$ 147,327$ 424,881$ Operating Expenses Personal services 229,650 10,358 240,008 Supplies 488 488 976 Professional services 56,323 5,105 61,428 Insurance 1,782 - 1,782 Repairs and maintenance 2,741 - 2,741 Depreciation 37,139 - 37,139 Other charges 5,942 148,879 154,821 Total Operating Expenses 334,065 164,830 498,895 Operating Income (Loss)(56,511) (17,503) (74,014) Nonoperating Revenues (Expenses) Interest income 48,982 2,988 51,970 Intergovernmental - 8,505 8,505 Other income 2,796 - 2,796 Total Nonoperating Revenues (Expenses)51,778 11,493 63,271 Change in Net Position (4,733) (6,010) (10,743) Net Position, January 1 2,288,669 61,053 2,349,722 Net Position, December 31 2,283,936$ 55,043$ 2,338,979$ Business-type Activities - Enterprise Funds City of Albertville, Minnesota Statement of Revenues, Expenses and Changes in Net Position NonmajorProprietary Funds For the Year Ended December 31, 2024 The notes to the financial statements are an integral part of this statement. 119 Total Nonmajor Storm Water Recycling Funds Cash Flows from Operating Activities Receipts from customers and users 281,173$ 148,605$ 429,778$ Other receipts and payments, net 2,796 - 2,796 Payments to suppliers (64,962) (152,174) (217,136) Payments to employees (209,990) (10,550) (220,540) Net Cash Provided by (Used) Operating Activities 9,017 (14,119) (5,102) Cash Flows from Noncapital Financing Activities Intergovernmental receipts - 8,505 8,505 Cash Flows from Investing Activities Interest received on investments 48,982 2,988 51,970 Net Increase (Decrease) in Cash and Cash Equivalents 57,999 (2,626) 55,373 Cash and Cash Equivalents, January 1 1,101,615 57,851 1,159,466 Cash and Cash Equivalents, December 31 1,159,614$ 55,225$ 1,214,839$ City of Albertville, Minnesota Statement of Cash Flows Nonmajor Proprietary Funds For the Year Ended December 31, 2024 Business-type Activities - Enterprise Funds The notes to the financial statements are an integral part of this statement. 120 Total Nonmajor Storm Water Recycling Funds Reconciliation of Operating Income (Loss) to Net Cash Provided by Operating Activities Operating income (loss)(56,511)$ (17,503)$ (74,014)$ Adjustments to reconcile operating income (loss) to net cash provided by operating activities Other income related to operations 2,796 - 2,796 Depreciation 37,139 - 37,139 (Increase) decrease in assets/deferred outflows of resources Accounts receivable (130) (149) (279) Prepaids (33) - (33) Due from other governments - (588) (588) Special assessments receivable 3,749 1,427 5,176 Deferred pension resources 7,811 - 7,811 Increase (decrease) in liabilities/deferred inflows of resources Accounts payable 2,347 298 2,645 Accrued salaries payable (4,016) (192) (4,208) Unearned revenue - 2,588 2,588 Compensated absences payable 31,300 - 31,300 Net pension liability (26,768) - (26,768) Deferred pension resources 11,333 - 11,333 Net Cash Provided (Used) by Operating Activities 9,017$ (14,119)$ (5,102)$ Business-type Activities - Enterprise Funds City of Albertville, Minnesota Statement of Cash Flows (Continued) Proprietary Funds For the Year Ended December 31, 2024 The notes to the financial statements are an integral part of this statement. 121 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, 2024 (With Comparative Actual Amounts for the Year Ended December 31, 2023) 2023 Actual Variance with Actual Original Final Amounts Final Budget Amounts Revenues Taxes General property taxes 2,744,776$ 2,744,776$ 2,758,332$ 13,556$ 2,473,673$ Franchise fees 380,000 380,000 336,872 (43,128) 325,250 Total 3,124,776 3,124,776 3,095,204 (29,572) 2,798,923 Licenses and permits Business 60,500 60,500 63,708 3,208 62,063 Non-business 202,500 202,500 295,238 92,738 205,503 Total licenses and permits 263,000 263,000 358,946 95,946 267,566 Intergovernmental State Local government aid 258,858 258,858 258,858 - 49,164 Property tax credits - - 177 177 153 Other 59,535 59,535 240,921 181,386 199,735 Total intergovernmental 318,393 318,393 499,956 181,563 249,052 Charges for services General government 154,293 154,293 158,265 3,972 131,281 Public safety 589,923 589,923 589,923 - 520,602 Culture and recreation 15,000 15,000 310,862 295,862 317,722 Total charges for services 759,216 759,216 1,059,050 299,834 969,605 Fines and forfeitures - - 25,417 25,417 14,812 Special assessments - - 13,805 13,805 80,394 Investment earnings - - 120,460 120,460 151,130 Miscellaneous Other 20,000 20,000 38,386 18,386 31,408 Refunds and reimbursements - - 36,067 36,067 35,419 Total miscellaneous 20,000 20,000 74,453 54,453 66,827 Total Revenues 4,485,385 4,485,385 5,247,291 761,906 4,598,309 Budgeted Amounts 2024 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, 2024 (With Comparative Actual Amounts for the Year Ended December 31, 2023) 2023 Actual Variance with Actual Original Final Amounts Final Budget Amounts Expenditures Current General government Legislative Personal services 27,128$ 27,128$ 25,042$ 2,086$ 26,697$ Supplies 2,500 2,500 890 1,610 2,050 Other services and charges 28,500 28,500 21,583 6,917 28,710 Total legislative 58,128 58,128 47,515 10,613 57,457 Administration Personal services 177,255 177,255 176,691 564 166,169 Supplies 5,000 5,000 1,209 3,791 1,450 Other services and charges 17,000 17,000 16,600 400 13,538 Total administration 199,255 199,255 194,500 4,755 181,157 City clerk Personal services 96,601 96,601 103,601 (7,000) 93,423 Supplies 12,100 12,100 8,831 3,269 7,051 Other services and charges 50,300 50,300 41,907 8,393 48,189 Total city clerk 159,001 159,001 154,339 4,662 148,663 Elections and voter registration Personal services - - 1,351 (1,351) - Other services and charges 27,000 27,000 23,860 3,140 2,464 Total elections and voter registration 27,000 27,000 25,211 1,789 2,464 Treasurer Personal services 109,091 109,091 108,107 984 101,245 Supplies 8,600 8,600 3,174 5,426 4,630 Other services and charges 22,000 22,000 26,668 (4,668) 21,293 Total treasurer 139,691 139,691 137,949 1,742 127,168 Assessing Other services and charges 52,000 52,000 45,050 6,950 50,055 Legal Other services and charges 30,000 30,000 45,660 (15,660) 49,183 2024 Budgeted Amounts 123 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, 2024 (With Comparative Actual Amounts for the Year Ended December 31, 2023) 2023 Actual Variance with Actual Original Final Amounts Final Budget Amounts 2024 Budgeted Amounts Expenditures (Continued) Current (continued) General government (continued) Engineering Other services and charges 35,000$ 35,000$ 397,224$ (362,224)$ 76,854$ Miscellaneous Personal services 30,975 30,975 28,531 2,444 28,478 Supplies 1,500 1,500 - 1,500 - Other services and charges 266,300 266,300 369,995 (103,695) 300,051 Total miscellaneous 298,775 298,775 398,526 (99,751) 328,529 Total general government 998,850 998,850 1,445,974 (447,124) 1,021,530 Public safety Police protection Other services and charges 1,216,246 1,216,246 1,216,246 - 949,913 Fire protection Personal services 507,237 507,237 705,873 (198,636) 620,092 Supplies 31,700 31,700 20,986 10,714 38,880 Other services and charges 149,055 149,055 156,621 (7,566) 147,694 Total fire protection 687,992 687,992 883,480 (195,488) 806,666 Protective inspection Personal services 297,045 297,045 283,748 13,297 166,793 Supplies 3,500 3,500 2,295 1,205 3,324 Other services and charges 26,900 26,900 12,915 13,985 107,139 Total protective inspection 327,445 327,445 298,958 28,487 277,256 Animal control Other services and charges 12,000 12,000 6,164 5,836 6,984 Total public safety 2,243,683 2,243,683 2,404,848 (161,165) 2,040,819 124 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, 2024 (With Comparative Actual Amounts for the Year Ended December 31, 2023) 2023 Actual Variance with Actual Original Final Amounts Final Budget Amounts 2024 Budgeted Amounts Expenditures (Continued) Current (continued) Public works Streets Personal services 372,640$ 372,640$ 303,401$ 69,239$ 285,663$ Supplies 37,000 37,000 29,299 7,701 47,771 Other services and charges 84,650 84,650 68,552 16,098 153,268 Total streets 494,290 494,290 401,252 93,038 486,702 Street lighting Other services and charges 111,320 111,320 87,156 24,164 103,049 Total public works 605,610 605,610 488,408 117,202 589,751 Culture and recreation Parks Personal services 424,335 424,335 326,847 97,488 319,135 Supplies 36,750 36,750 29,196 7,554 34,146 Other services and charges 163,157 163,157 144,372 18,785 150,054 Total parks 624,242 624,242 500,415 123,827 503,335 Arena Personal services - - 293,088 (293,088) 299,636 Total culture and recreation 624,242 624,242 793,503 (169,261) 802,971 Economic development Other services and charges 13,000 13,000 8,000 5,000 3,502 Total Expenditures 4,485,385 4,485,385 5,140,733 (655,348) 4,458,573 Net Change in Fund Balances - - 106,558 106,558 139,736 Fund Balances, January 1 2,732,671 2,732,671 2,732,671 - 2,592,935 Fund Balances, December 31 2,732,671$ 2,732,671$ 2,839,229$ 106,558$ 2,732,671$ 125 City of Albertville, Minnesota Debt Service Funds Combining Balance Sheet December 31, 2024 357 358 359 360 CSAH 19 2003A 2011C 2012B 2012A G.O.G.O. CIP G.O. CIP G.O. Improv. Improvement Refunding Refunding Refunding Assets Cash and temporary investments 69,295$ 187,425$ 30,167$ 72,699$ Receivables Special assessments 143,073 - - - Interest - - - - Notes - - - - Advances to other funds 602,000 - - - Land held for resale 180,434 - - - Total Assets 994,802$ 187,425$ 30,167$ 72,699$ 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 851,729 187,425 30,167 72,699 Total Deferred Inflows of Resources and Fund Balances 994,802$ 187,425$ 30,167$ 72,699$ 126 361 362 468 Lachman Industrial 2012A 2012A G.O. Improv.G.O. Improv.CSAH 19 Refunding Refunding Interstate 94 Total 194,124$ 481,179$ 291,422$ 1,326,311$ - - 269,474 412,547 - - 3,121 3,121 - - 585,186 585,186 - 234,173 - 836,173 - 420,519 - 600,953 194,124$ 1,135,871$ 1,149,203$ 3,764,291$ -$ -$ 269,474$ 412,547$ - - 585,188 585,188 - - 854,662 997,735 194,124 1,135,871 294,541 2,766,556 194,124$ 1,135,871$ 1,149,203$ 3,764,291$ 127 City of Albertville, Minnesota Debt Service Funds Combining Schedule of Revenues, Expenditures And Changes in Fund Balances For the Year Ended December 31, 2024 357 358 359 360 CSAH 19 2003A 2011C 2012B 2012A G.O.G.O. CIP G.O. CIP G.O. Improv. Improvement Refunding Refunding Refunding Revenues Property taxes -$ 102,472$ 262,135$ -$ Special assessments - - - - Investment earnings 2,186 5,844 8,277 3,938 Miscellaneous - - - - Total Revenues 2,186 108,316 270,412 3,938 Expenditures Current Public works - - - - Debt service Principal - 150,000 250,000 - Interest and other - 8,088 11,618 - Total Expenditures - 158,088 261,618 - Net Change in Fund Balances 2,186 (49,772) 8,794 3,938 Fund Balances, January 1 849,543 237,197 21,373 68,761 Fund Balances, December 31 851,729$ 187,425$ 30,167$ 72,699$ 128 361 362 468 Lachman Industrial 2012A 2012A G.O. Improv.G.O. Improv.CSAH 19 Refunding Refunding Interstate 94 Total -$ -$ 52,695$ 417,302$ - - 43,627 43,627 8,393 26,583 19,816 75,037 - - 73,148 73,148 8,393 26,583 189,286 609,114 - 3,948 - 3,948 - - 181,000 581,000 - - 21,837 41,543 - 3,948 202,837 626,491 8,393 22,635 (13,551) (17,377) 185,731 1,113,236 308,092 2,783,933 194,124$ 1,135,871$ 294,541$ 2,766,556$ 129 City of Albertville, Minnesota Combining Statement of Fiduciary Net Position Fiduciary Funds December 31, 2024 Albertville Total Friendly Albertville STMA Custodial City Days Lions Ice Arena Funds Assets Cash and temporary investments 81,258$ 230,517$ 662,866$ 974,641$ Accounts receivable - - 109,434 109,434 Inventory - - 2,911 2,911 Prepaid items - - 11,837 11,837 Total Assets 81,258 230,517 787,048 1,098,823 Liabilities Accounts payable - - 27,475 27,475 Due to other governments - - 1,401 1,401 Total Liabilities - - 28,876 28,876 Net Position Restricted for organizations and other governments 81,258$ 230,517$ 758,172$ 1,069,947$ 130 Fiduciary Funds Albertville Total Friendly Albertville STMA Custodial City Days Lions Ice Arena Funds Additions Contributions Charges for services -$ -$ 764,949$ 764,949$ Donations 5,000 - - 5,000 Concessions - - 79,274 79,274 Total Contributions 5,000 - 844,223 849,223 Investment earnings 3,393 1,656 26,886 31,935 Miscellaneous - - 96,369 96,369 Total Additions 8,393 1,656 967,478 977,527 Deductions Professional services 41 35,310 361,244 396,595 Supplies - - 36,523 36,523 Utilties - - 221,188 221,188 Insurance - - 22,261 22,261 Repairs and maintenance - - 91,423 91,423 Capital outlay - - 87,790 87,790 Miscellaneous - - 31,777 31,777 Total Deductions 41 35,310 852,206 887,557 Net Increase (Decrease) in Fiduciary Net Position 8,352 (33,654) 115,272 89,970 Net Position, January 1 72,906 264,171 642,900 979,977 Net Position, December 31 81,258$ 230,517$ 758,172$ 1,069,947$ City of Albertville, Minnesota Combining Statement of Changes in Fiduciary Net Position For the Year Ended December 31, 2024 131 City of Albertville, Minnesota Summary Financial Report Revenues and Expenditures For General Operations Governmental Funds For the Year Ended December 31, 2024 2024 2023 Revenues Taxes 6,168,490$ 5,280,839$ 16.81 % Special assessments 77,539 151,906 (48.96) Licenses and permits 358,946 267,566 34.15 Intergovernmental 505,676 855,346 (40.88) Charges for services 1,059,050 1,001,605 5.74 Fines and forfeitures 25,417 14,812 71.60 Investment earnings (losses)539,135 564,901 (4.56) Miscellaneous 480,271 149,077 222.16 Total Revenues 9,214,524$ 8,286,052$ 11.21 % Per Capita 1,079$ 1,008$ 7.01 % Expenditures Current General government 1,447,174$ 1,021,530$ 41.67 % Public safety 2,404,848 2,040,819 17.84 Public works 492,356 597,277 (17.57) Culture and recreation 793,503 802,971 (1.18) Economic development 456,586 265,896 71.72 Capital outlay General government 16,158 214,872 (92.48) Public safety 529,350 87,388 505.75 Public works 1,855,760 1,529,614 21.32 Culture and recreation 214,294 204,673 4.70 Economic development 10,837 - N/A Debt service Principal 581,000 813,000 (28.54) Interest and other 52,315 68,903 (24.07) Total Expenditures 8,854,181$ 7,646,943$ 15.79 % Per Capita 1,037$ 930$ 11.42 % Total Long-term Indebtedness 1,944,674$ 2,532,092$ (23.20) % Per Capita 228 308 (26.09) General Fund Balance - December 31 2,839,229$ 2,732,671$ 3.90 % Per Capita 332 332 (0.02) 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. Percent Increase (Decrease) Total 132 STATISTICAL SECTION (UNAUDITED) CITY OF ALBERTVILLE ALBERTVILLE, MINNESOTA FOR THE YEAR ENDED DECEMBER 31, 2024 133 THIS PAGE IS LEFT BLANK INTENTIONALLY 134 STATISTICAL SECTION (Unaudited) This part of the City of Albertville’s annual comprehensive financial report presents detailed information as a context for understanding what the information in the financial statements, note disclosures, and required supplementary information says about the government’s overall financial health. Financial Trends These schedules contain trend information to help the reader understand how the government’s financial performance and well-being have changed over time. Revenue Capacity These schedules contain information to help the reader assess the government’s most significant local revenue source, the property tax. Debt Capacity These schedules present information to help the reader assess the affordability of the government’s current levels of out-standing debt and the government’s ability to issue additional debt in the future. Demographic and Economic Information These schedules offer demographic and economic indicators to help the reader understand the environment within which the government’s financial activities take place. Operating Information These schedules contain service and infrastructure data to help the reader understand how the information in the government’s financial report relates to the services the government provides and the activities it performs. Sources: Unless otherwise noted, the information in these schedules is derived from the annual financial reports for the relevant year. 135 2015 2016 2017 2018 Governmental Activities Net investment in capital assets 16,000,840$ 15,925,140$ 16,653,225$ 16,996,701$ Restricted 6,603,871 3,240,957 3,543,926 3,482,527 Unrestricted 4,287,635 8,260,766 8,191,522 8,651,739 Total Governmental Activities Net Position 26,892,346$ 27,426,863$ 28,388,673$ 29,130,967$ Business-type Activities Net investment in capital assets 8,423,132$ 8,632,306$ 8,717,564$ 9,046,737$ Unrestricted 9,038,370 8,856,604 9,562,439 9,489,105 Total Business-type Activities Net Position 17,461,502$ 17,488,910$ 18,280,003$ 18,535,842$ Total Primary Government Net investment in capital assets 24,423,972$ 24,557,446$ 25,370,789$ 26,043,438$ Restricted 6,603,871 3,240,957 3,543,926 3,482,527 Unrestricted 13,326,005 17,117,370 17,753,961 18,140,844 Total Primary Government 44,353,848$ 44,915,773$ 46,668,676$ 47,666,809$ Fiscal Year City of Albertville, Minnesota Statistical Section (Unaudited) Net Position by Component Last Ten Fiscal Years (Accrual Basis of Accounting) 136 Table 1 2019 2020 2021 2022 2023 2024 17,512,792$ 18,587,524$ 18,777,874$ 19,783,680$ 20,273,389$ 21,559,851$ 5,398,928 5,120,588 5,683,392 5,667,950 5,714,233 5,877,307 7,289,708 7,153,029 8,481,228 8,458,920 9,205,344 9,667,336 30,201,428$ 30,861,141$ 32,942,494$ 33,910,550$ 35,192,966$ 37,104,494$ 10,922,191$ 10,788,055$ 11,001,276$ 11,189,927$ 11,419,846$ 13,952,765$ 9,102,051 10,545,577 11,685,984 12,978,713 15,654,676 15,001,710 20,024,242$ 21,333,632$ 22,687,260$ 24,168,640$ 27,074,522$ 28,954,475$ 28,434,983$ 29,375,579$ 29,779,150$ 30,973,607$ 31,693,235$ 35,512,616$ 5,398,928 5,120,588 5,683,392 5,667,950 5,714,233 5,877,307 16,391,759 17,698,606 20,167,212 21,437,633 24,860,020 24,669,046 50,225,670$ 52,194,773$ 55,629,754$ 58,079,190$ 62,267,488$ 66,058,969$ Fiscal Year 137 2015 2016 2017 2018 Expenses Governmental Activities General government 715,779$ 858,450$ 822,891$ 737,375$ Public safety 1,222,679 1,602,075 1,548,674 1,529,785 Public works 1,636,968 1,631,343 1,385,420 1,757,764 Culture and recreation 569,429 617,041 788,338 611,258 Economic development 229,167 117,086 182,059 221,319 Interest on long-term debt 255,379 197,099 228,006 167,872 Total Governmental Activities Expenses 4,629,401 5,023,094 4,955,388 5,025,373 Business-type Activities Sewer utility 961,507 846,349 805,318 818,418 Water utility 399,813 418,260 369,100 411,151 Storm water utility 182,779 187,029 265,436 272,024 Recycling 81,689 94,580 95,850 106,514 Total Business-type Activities Expenses 1,625,788 1,546,218 1,535,704 1,608,107 Total Expenses 6,255,189$ 6,569,312$ 6,491,092$ 6,633,480$ Program Revenues Governmental Activities Charges for services General government 489,742$ 437,398$ 630,143$ 608,525$ Public safety 227,250 258,553 276,445 296,707 Public works 2,500 1,700 5,300 3,050 Culture and recreation 154,851 195,815 229,772 165,908 Operating grants and contributions 230,499 240,569 265,983 193,526 Capital grants and contributions 2,000,970 99,914 118,011 150,340 Total Governmental Activities Program Revenues 3,105,812 1,233,949 1,525,654 1,418,056 Business-type Activities Charges for services Sewer utility 752,094 786,153 848,544 868,052 Water utility 256,040 272,503 355,075 362,737 Storm water utility 251,960 222,630 213,666 211,420 Recycling 81,223 87,444 82,867 94,134 Operating grants and contributions 64,001 15,954 18,240 16,794 Capital grants and contributions 122,884 114,742 683,125 201,561 Total Business-Type Activities Program Revenues 1,528,202 1,499,426 2,201,517 1,754,698 Total Program Revenues 4,634,014$ 2,733,375$ 3,727,171$ 3,172,754$ Note: The City implemented GASB Statement No. 68 and GASB Statement No. 71 in 2015. Years prior to 2015 have not been restated. Fiscal Year City of Albertville, Minnesota Statistical Section (Unaudited) Changes in Net Position (Continued on the Following Pages) Last Ten Fiscal Years (Accrual Basis of Accounting) 138 Table 2 2019 2020 2021 2022 2023 2024 767,343$ 1,058,803$ 1,154,441$ 1,273,530$ 1,257,890$ 1,123,145$ 1,877,457 1,941,340 1,879,989 1,989,621 2,242,841 2,743,870 1,195,560 3,185,369 1,689,856 1,598,677 2,245,612 2,261,304 1,069,989 882,232 871,722 988,150 1,147,360 1,019,553 223,663 237,902 227,972 1,354,800 265,896 467,423 191,958 149,493 130,847 112,596 95,580 81,151 5,325,970 7,455,139 5,954,827 7,317,374 7,255,179 7,696,446 1,102,919 1,111,727 1,067,137 1,348,974 1,692,252 1,700,097 451,246 417,826 414,208 465,093 526,850 501,642 252,627 290,418 225,386 265,392 297,395 334,065 118,359 117,364 118,432 145,939 157,099 164,830 1,925,151 1,937,335 1,825,163 2,225,398 2,673,596 2,700,634 7,251,121$ 9,392,474$ 7,779,990$ 9,542,772$ 9,928,775$ 10,397,080$ 544,149$ 640,044$ 878,311$ 1,190,569$ 380,077$ 506,556$ 335,444 458,866 435,005 471,179 521,278 616,941 1,750 4,350 4,250 2,125 1,450 4,250 87,525 301,435 1,193,567 315,636 355,279 638,737 191,470 852,421 403,935 380,209 1,071,298 793,051 359,247 1,324,103 677,714 1,606,812 11,930 78,896 1,519,585 3,581,219 3,592,782 3,966,530 2,341,312 2,638,431 866,602 1,072,549 1,147,984 1,010,675 1,106,098 1,181,900 348,310 411,854 452,529 493,578 496,765 539,850 209,206 222,281 281,058 300,772 249,451 280,350 105,028 95,461 116,919 135,717 141,778 147,327 22,416 22,273 17,930 19,637 18,581 102,826 1,515,818 1,203,165 1,129,841 1,818,198 2,426,134 1,096,687 3,067,380 3,027,583 3,146,261 3,778,577 4,438,807 3,348,940 4,586,965$ 6,608,802$ 6,739,043$ 7,745,107$ 6,780,119$ 5,987,371$ Fiscal Year 139 City of Albertville, Minnesota Statistical Section (Unaudited) Changes in Net Position (Continued) Last Ten Fiscal Years (Accrual Basis of Accounting) 2015 2016 2017 2018 Net Revenues (Expenses) Governmental activities (1,523,589)$ (3,789,145)$ (3,429,734)$ (3,607,317)$ Business-type activities (97,586) (46,792) 665,813 146,591 Total Primary Government Revenues (Expenses)(1,621,175)$ (3,835,937)$ (2,763,921)$ (3,460,726)$ General Revenues and Other Changes in Net Position General Revenues Governmental Activities Taxes Property taxes, levied for general purpose 2,606,772$ 2,746,144$ 2,839,090$ 3,054,845$ Property taxes, levied for debt service 885,270 921,796 916,050 831,410 Tax increments 109,132 169,651 230,131 231,247 Franchise fees - - - - Grants and contributions not restricted to specific programs 98,932 102,311 93,140 111,979 Unrestricted investment earnings (losses)86,644 103,541 138,248 120,130 Gain on sale of capital assets 3,450 - 49,020 - Miscellaneous 132,569 280,219 172,681 - Transfers - - (46,816) - Total Governmental Activities General Revenues 3,922,769 4,323,662 4,391,544 4,349,611 Business-type Activities Property taxes levied for general purposes - - - - Grants and contributions not restricted to specific programs - - - - Unrestricted investment earnings (losses)89,694 74,200 78,464 109,248 Transfers - - 46,816 - Total Business-type Activities General Revenues 89,694 74,200 125,280 109,248 Total Primary Government 4,012,463$ 4,397,862$ 4,516,824$ 4,458,859$ Change in Net Position Governmental activities 2,399,180$ 534,517$ 961,810$ 742,294$ Business-type activities (7,892) 27,408 791,093 255,839 Total Primary Government 2,391,288$ 561,925$ 1,752,903$ 998,133$ Fiscal Year 140 Table 2 2019 2020 2021 2022 2023 2024 (3,806,385)$ (3,873,920)$ (2,362,045)$ (3,350,844)$ (4,913,867)$ (5,058,015)$ 1,142,229 1,090,248 1,321,098 1,553,179 1,765,211 648,306 (2,664,156)$ (2,783,672)$ (1,040,947)$ (1,797,665)$ (3,148,656)$ (4,409,709)$ 3,497,033$ 3,469,449$ 3,614,097$ 3,852,811$ 4,143,704$ 4,831,192$ 508,855 506,868 472,425 473,974 364,072 364,607 232,684 240,457 220,464 197,675 462,983 627,846 - - - - 325,250 336,872 113,056 126,418 115,426 115,422 305,373 259,035 384,339 190,441 11,191 (320,982) 564,901 539,135 140,879 - - - 30,000 10,856 - - 9,795 - - - - - - - - - 4,876,846 4,533,633 4,443,398 4,318,900 6,196,283 6,969,543 - - - 222,934 220,624 332,528 - - - 58,468 111,961 129,624 346,171 219,142 32,530 (353,201) 808,086 769,495 - - - - - - 346,171 219,142 32,530 (71,799) 1,140,671 1,231,647 5,223,017$ 4,752,775$ 4,475,928$ 4,247,101$ 7,336,954$ 8,201,190$ 1,070,461$ 659,713$ 1,070,461$ 968,056$ 1,282,416$ 1,911,528$ 1,488,400 1,309,390 1,488,400 1,481,380 2,905,882 1,879,953 2,558,861$ 1,969,103$ 2,558,861$ 2,449,436$ 4,188,298$ 3,791,481$ Fiscal Year 141 2015 2016 2017 2018 General Fund Nonspendable 51,000$ 51,000$ 51,000$ 133,328$ Unassigned 1,876,186 1,887,922 2,258,988 2,252,982 Total General Fund 1,927,186$ 1,938,922$ 2,309,988$ 2,386,310$ All Other Governmental Funds Nonspendable 2,695$ 1,614$ -$ -$ Restricted 3,263,871 3,272,492 3,670,865 3,758,526 Committed - - - - Assigned 5,969,374 6,412,396 6,076,678 6,390,844 Unassigned (842,241) (469,839) (514,315) (432,912) Total All Other Governmental Funds 8,393,699$ 9,216,663$ 9,233,228$ 9,716,458$ City of Albertville, Minnesota Statistical Section (Unaudited) Fund Balances of Governmental Funds Last Ten Fiscal Years Fiscal Year 142 Table 3 2019 2020 2021 2022 2023 2024 140,151$ 90,389$ 136,098$ 159,875$ 177,926$ 191,320$ 2,477,774 3,200,223 2,178,219 2,433,060 2,554,745 2,647,909 2,617,925$ 3,290,612$ 2,314,317$ 2,592,935$ 2,732,671$ 2,839,229$ -$ -$ -$ -$ 10,000$ -$ 3,387,291 3,388,480 4,090,889 4,074,312 4,396,743 4,732,741 152,836 156,143 155,950 151,451 159,322 167,272 4,853,536 3,965,154 5,634,162 6,062,374 6,187,137 5,986,659 (425,086) (389,806) (353,483) (1,033,498) (999,190) (878,875) 7,968,577$ 7,119,971$ 9,527,518$ 9,254,639$ 9,754,012$ 10,007,797$ Fiscal Year 143 City of Albertville, Minnesota Statistical Section (Unaudited) Changes in Fund Balances of Governmental Funds Last Ten Fiscal Years 2015 2016 2017 2018 Revenues Taxes 3,596,744$ 3,840,259$ 4,018,573$ 4,109,257$ Licenses and permits 197,878 174,928 239,833 258,992 Intergovernmental 1,958,201 282,508 268,493 312,506 Charges for services 648,359 662,313 888,979 845,182 Fines and forfeitures 1,000 - 200 1,500 Special assessments 434,682 246,350 196,021 291,412 Investment earnings (losses)86,644 103,541 138,248 120,130 Miscellaneous 358,035 537,803 385,472 175,104 Total Revenues 7,281,543 5,847,702 6,135,819 6,114,083 Expenditures General government 606,158 738,974 735,742 894,542 Public safety 1,154,656 1,302,463 1,350,500 1,395,937 Public works 634,542 431,596 387,744 411,944 Culture and recreation 387,025 445,486 501,693 533,359 Economic development 203,626 76,875 141,632 175,193 Miscellaneous - - 376 - Capital outlay 841,615 883,733 1,470,904 1,010,977 Debt service Principal 3,191,851 963,240 962,822 992,000 Interest 234,925 170,635 198,979 140,579 Total Expenditures 7,254,398 5,013,002 5,750,392 5,554,531 Excess (Deficiency) of Revenues Over (Under) Expenditures 27,145 834,700 385,427 559,552 Other Financing Sources (Uses) Transfers in 344,000 295,133 323,424 50,068 Bond issuance 235,000 - - - Sale of capital assets 3,450 - 49,020 - Transfers out (344,000) (295,133) (370,240) (50,068) Total Other Financing Sources (Uses)238,450 - 2,204 - Net Change in Fund Balances 265,595$ 834,700$ 387,631$ 559,552$ Debt Service as a Percentage of Noncapital Expenditures 52.5%25.2%26.4%24.5% Fiscal Year 144 Table 4 2019 2020 2021 2022 2023 2024 4,233,810$ 4,221,332$ 4,323,838$ 4,517,340$ 5,280,839$ 6,168,490$ 215,108 300,888 403,265 652,406 267,566 358,946 438,035 2,077,442 302,106 1,383,658 855,346 505,676 1,004,236 1,076,374 2,131,559 1,347,603 1,001,605 1,059,050 500 - 500 7,590 14,812 25,417 259,787 352,949 232,077 443,326 151,906 77,539 384,339 190,441 11,191 (320,982) 564,901 539,135 138,771 181,825 262,487 236,605 149,077 480,271 6,674,586 8,401,251 7,667,023 8,267,546 8,286,052 9,214,524 791,250 920,918 1,021,471 1,102,691 1,021,530 1,447,174 1,557,191 1,629,347 1,717,622 1,802,833 2,040,819 2,404,848 437,365 427,682 419,418 495,607 597,277 492,356 748,116 763,021 725,853 760,934 802,971 793,503 178,507 210,170 203,972 1,304,800 265,896 456,586 - - - - - - 3,380,525 3,646,864 1,178,706 1,832,598 2,036,547 2,626,399 939,000 856,000 864,000 876,000 813,000 581,000 165,017 123,168 104,729 86,344 68,903 52,315 8,196,971 8,577,170 6,235,771 8,261,807 7,646,943 8,854,181 (1,522,385) (175,919) 1,431,252 5,739 639,109 360,343 151,390 - 1,803,693 271,670 - 1,516 - - - - - - 6,119 - - - - - (151,390) - (1,803,693) (271,670) - (1,516) 6,119 - - - - - (1,516,266)$ (175,919)$ 1,431,252$ 5,739$ 639,109$ 360,343$ 20.6%14.4%18.3%14.8%14.3%9.7% Fiscal Year 145 City of Albertville, Minnesota Statistical Section (Unaudited) Tax Capacity, Market Value and Estimated Actual Value of Taxable Property (Shown by Year of Tax Collectability) Taxable Market Value Personal property 5,279,500$ 5,442,200$ 6,101,100$ 6,101,100$ Real estate 542,867,500 567,786,000 656,054,200 656,054,200 Total Taxable Market Value 548,147,000$ 573,228,200$ 662,155,300$ 662,155,300$ Estimated Actual Value of Taxable Property 595,816,100$ 620,513,900$ 705,380,300$ 705,380,300$ Taxable Market Value as a Percentage of Estimated Actual Value 92.00 %92.38 %93.87 %93.87 % Tax Capacity Personal property 103,325$ 106,630$ 111,611$ 119,863$ Real estate 6,780,598 7,026,956 7,384,373 7,961,892 Subtotal 6,883,923 7,133,586 7,495,984 8,081,755 Less: tax increment (79,615) (123,377) (169,948) (171,863) Net Tax Capacity 6,804,308$ 7,010,209$ 7,326,036$ 7,909,892$ Tax levies General 2,547,180$ 2,749,549$ 2,863,190$ 3,056,908$ Debt service 949,967 921,691 916,045 831,410 Total 3,497,147$ 3,671,240$ 3,779,235$ 3,888,318$ Tax capacity rate General 37.435 %39.222 %39.082 %38.647 Debt service 13.961 13.148 12.504 10.511 Total 51.396 %52.370 %51.586 %49.158 Source: Wright County Auditor/Treasurer Department 2018201720162015 146 Table 5 6,389,500$ 7,128,500$ 5,738,000$ 6,110,500$ 6,154,000$ 6,464,600$ 707,392,300 745,489,800 832,227,900 1,001,635,873 1,163,031,027 1,182,282,286 713,781,800$ 752,618,300$ 837,965,900$ 1,007,746,373$ 1,169,185,027$ 1,188,746,886$ 758,532,600$ 804,315,050$ 853,083,000$ 1,044,060,600$ 1,044,060,600$ 1,192,720,900$ 94.10 %93.57 %98.23 %96.52 %111.98 %99.67 % 125,822$ 140,544$ 155,457$ 120,132$ 122,330$ 127,542 8,513,031 8,952,664 9,255,718 9,810,351 11,702,153 14,007,478 8,638,853 9,093,208 9,411,175 9,930,483 11,824,483 14,135,020 (171,188) (179,241) (186,700) (152,298) (421,581) (555,211) 8,467,665$ 8,913,967$ 9,224,475$ 9,778,185$ 11,402,902$ 13,579,809$ 3,442,876$ 3,414,096$ 3,572,049$ 3,782,812$ 4,121,198$ 4,772,914$ 561,855 781,384 745,104 749,908 637,696 749,157 4,004,731$ 4,195,480$ 4,317,153$ 4,532,720$ 4,758,894$ 5,522,071$ 40.659 %38.301 %38.724 %38.686 %36.142 %35.147 % 6.635 8.766 8.077 7.669 5.592 5.517 47.294 %47.066 %46.801 %46.355 %41.734 %40.664 % 202420232022202120202019 147 Table 6City of Albertville, Minnesota Statistical Section (Unaudited) Property Tax Capacity Rates - Direct and Overlapping Governments (Per $1,000 of Tax Capacity) Year Taxes Payable City County No. 885 No. 728 2015 51.396 40.530 51.082 51.635 % 2016 52.370 39.970 49.102 39.266 2017 51.586 39.599 46.893 36.659 2018 49.158 39.946 47.950 36.137 2019 47.294 44.273 47.143 32.865 2020 47.066 44.421 45.280 34.371 2021 43.717 46.801 44.205 31.712 2022 43.749 46.355 42.428 30.884 2023 37.844 41.793 35.446 26.600 2024 33.733 41.954 32.274 26.605 Source: Wright County Auditor/Treasurer Department Overlapping rates are those of local and county governments that apply to property owners within the City. Not all overlapping rates apply to all City property owners (e.g. the rates for special districts apply only to the proportion of the government's property owners whose property is located within the geographic boundaries of the special district). Overlapping Rates School District District School 148 Table 7 Tax Tax Taxpayer Capacity Rank Capacity Rank CPS Partners, LP 1,117,990$ 1 8.23 %1,097,256$ 1 15.94 % Kingstron Crossing of Albertville LLP 483,337 2 3.56 - - Advanced Volumetric Alliance 296,182 3 2.18 - - Preserve at Albertville 261,392 4 1.92 - - Albertville Station LLC 254,244 5 1.87 - - Border States Industries, Inc.137,996 6 1.02 60,420 7 0.88 Fraser Building LP 103,220 7 0.76 77,254 4 1.12 Scherer LP 103,094 8 0.76 - - Centerpoint Energy 100,458 9 0.74 - - Evans Park Inc 94,981 10 0.70 - - GMR Albertville LLC 94,946 11 0.70 - - Konz Corssing LLC 84,730 12 0.62 - - HGP Architectural Glass, Inc 80,414 13 0.59 63,682 6 0.93 EPK Family Fund LLC 79,448 14 0.59 - - Carman's Bay Investments LLC 79,448 15 0.59 - - MSP Albertville Retail Building LLC - - 187,648 2 2.73 Albertville Medical Building, LLC - - 79,448 3 1.15 Mollie LLC - - 69,250 5 1.01 Minnegasco Inc - - 48,376 8 0.70 Xcel Energy - - 47,176 9 0.69 Welcome Furniture and Appliances - - 45,640 10 0.66 Totals 3,371,880$ 24.83 %1,776,150$ 25.81 % Source: Wright County Auditor/Treasurer Department City of Albertville, Minnesota Statistical Section (Unaudited) Principal Taxpayers Current Year and Ten Years Ago December 31, 2024 Tax Capacity Tax Capacity 2024 2015 Percent Percent of Total of Total 149 Table 8City of Albertville, Minnesota Statistical Section (Unaudited) Property Tax Levies and Collections Last Ten Fiscal Years Collection Collection Fiscal Total of Current in Subsequent Total Year Levy Year's Levy Years Collections 2015 3,497,147$ 3,461,796$ 98.99 %35,351$ 3,486,111$ 99.68 % 2016 3,671,240 3,641,148 99.18 30,092 3,652,339 99.49 2017 3,779,235 3,753,984 99.33 25,251 3,760,732 99.51 2018 3,888,318 3,864,947 99.40 23,371 3,869,048 99.50 2019 4,004,731 3,977,179 99.31 26,979 3,999,113 99.86 2020 4,195,480 4,177,746 99.58 16,532 4,190,260 99.88 2021 4,317,153 4,310,349 99.84 4,962 4,317,153 100.00 2022 4,532,720 4,515,278 99.62 13,753 4,518,797 99.69 2023 4,758,894 4,728,200 99.36 9,279 4,728,200 99.36 2024 5,522,071 5,493,350 99.48 - 5,493,350 99.48 Source: Wright County Auditor/Treasurer Department (1) Includes state paid property tax credits. Collected to Levy Percent Percentage of Total of Levy Collections 150 Table 9City of Albertville, Minnesota Statistical Section (Unaudited) Ratios of Outstanding Debt by Type Last Ten Fiscal Years General General General Total Fiscal Obligation Obligation Obligation Primary Per Year Bonds Revenue Bonds Bonds Government Capita 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 2024 1,944,674 14,691,000 - 16,635,674 2.99 1,948 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. Personal Income Business-type Activities Percentage of Governmental Activities 151 Table 10City of Albertville, Minnesota Statistical Section (Unaudited) Ratios of General Bonded Debt Outstanding Last Ten Fiscal Years Less Amounts General Available in Net Fiscal Obligation Debt Service Bonded Per Year Bonds Funds Debt Capita 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 0.59 563 2019 6,285,999 5,268,736 1,017,263 0.13 136 2020 5,346,960 4,979,787 367,173 0.04 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) 2024 1,944,674 3,754,583 (1,809,909) (0.17) (212) 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. Value of Taxable Property See the Schedule of Tax Capacity, Market Value and Estimated Actual Value of Taxable Property for property value data. Percentage of Estimated Actual 152 Table 11City of Albertville, Minnesota Statistical Section (Unaudited) Computation of Direct and Overlapping Debt December 31, 2024 Gross Amount Bonded of Debt Used Net Debt For Net Debt Applicable Calculation to District Direct Debt City of Albertville 1,944,674$ 100.00 %1,944,674$ School District #885 113,720,000 22.26 25,314,072 School District #728 263,240,000 9.77 25,718,548 Wright County 119,360,000 4.77 5,693,472 Total Overlapping Debt 496,320,000 11.43 56,726,092 Total Direct and Overlapping Debt 498,264,674$ 11.78 %58,670,766$ 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. District Percentage Applicable to 153 2015 2016 2017 2018 Debt Limit (1)16,444,410$ 17,196,846$ 19,864,659$ 19,864,659$ Total Net Debt Applicable to Limit - - - - Total 16,444,410$ 17,196,846$ 19,864,659$ 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. Fiscal Year City of Albertville, Minnesota Statistical Section (Unaudited) Legal Debt Margin Information Last Ten Fiscal Years 154 Table 12 2019 2020 2021 2022 2023 2024 21,413,454$ 22,578,549$ 25,138,977$ 30,232,391$ 35,075,551$ 35,662,407 - - - - - - 21,413,454$ 22,578,549$ 25,138,977$ 30,232,391$ 35,075,551$ 35,662,407$ -$ -$ -$ -$ -$ -$ Legal Debt Margin Calculation for Fiscal Year 2020 Taxable Market Value 1,188,746,886$ Debt Limit (3% of Market Value)35,662,407$ Debt Applicable to Limit General Obligation Bonds (2)- Less: Amount Available in Debt Service Funds - Total Net Debt Applicable to Limit - Legal Debt Margin 35,662,407$ Fiscal Year 155 Table 13City of Albertville, Minnesota Statistical Section (Unaudited) Pledged-Revenue Coverage Last Ten Fiscal Years (1)Net Fiscal Gross (2)Revenue Year Revenue Expenses Available Principal Interest Coverage 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 2024 2,446,159 1,127,837 1,318,322 550,000 570,972 1.18 General Obligation Revenue Bonds Debt Service 156 Table 14City of Albertville, Minnesota Demographic and Economic Statistics Last Ten Fiscal Years Total Per Capita Fiscal Number of Persons per Personal Personal Median School Year Population (1)Households (2)Household (2)Income (3)Income (4)Age (5)Enrollment (6) 2015 7,262 2,411 3.01 321,866,364$ 44,322$ 34.6 5,900 2.8 % 2016 7,317 2,476 2.96 331,057,665 45,245 34.6 6,083 3.7 2017 7,370 2,480 2.97 335,335,000 45,500 34.6 6,300 3.5 2018 7,412 2,491 2.98 352,640,724 47,577 34.6 6,300 3.5 2019 7,485 2,516 2.97 348,748,605 46,593 34.6 6,300 3.2 2020 7,519 2,527 2.98 388,048,071 51,609 36.6 6,300 3.7 2021 7,519 2,527 2.98 415,184,142 55,218 36.6 6,300 3.8 2022 7,896 2,654 2.98 436,001,328 58,756 36.6 6,500 2.8 2023 8,220 2,740 2.98 544,081,800 66,190 36.9 6,470 2.7 2024 8,542 2,909 2.94 557,288,622 65,241 37.4 6,890 3.3 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 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. Note: The unemployment rate is for Wright County, the County of which the City is located. Unemployment data was not available for the City. Unemployment Rate (7) 157 THIS PAGE IS LEFT BLANK INTENTIONALLY 158 Table 15 Employees Rank Employees Rank ISD No. 885, St. Michael-Albertville 949 1 18.98 %680 2 13.60 % Outlets at Albertville 500 2 10.00 800 1 16.00 Coborn's 198 3 3.96 130 3 2.60 Advanced Volumetric Alliance, LLC 156 4 3.00 - - Oldcastle Building Envelopes 150 5 3.00 113 4 2.26 Fehn Gravel and Excavating, Inc.80 6 1.60 35 9 0.70 Guardian Angels - Engel Haus 65 7 1.30 59 6 1.18 Mold-Tech, Inc.61 8 1.22 35 10 0.70 Don's Bus Service 50 9 1.00 - Sherer Brothers Truss 48 10 0.96 55 7 1.10 Fraser Steel Co.- - 40 8 0.80 HGP Industries - - 75 5 1.50 Total 5,000 *45.02 %5,000 *40.44 % Source: Northland Securities * This is an estimation provided by the City. City of Albertville, Minnesota Principal Employers Current Year and Ten Years Ago Employer Employment Employment 2024 2015 Percentage Percentage of Total City of Total City 159 Table 16 2015 2016 2017 2018 General Government 6.3 6.3 6.3 6.7 Public Safety Fire Full Time Fire Chief - 1 1 1.0 Civilians (1)29.0 31.0 29.0 32.0 Public Works Engineering 0.3 0.3 0.3 0.3 Maintenance 1.5 2.0 2.0 2.0 Culture and Recreation Parks 1.5 2.0 2.0 2.0 Water 1.5 1.5 1.5 1.5 Sewer 1.5 1.5 1.5 1.5 Total 41.6 45.6 43.6 47.0 Source: City of Albertville (1) The fire department is made up entirely of volunteer civilians. They are used on an on-call basis only. Function City of Albertville, Minnesota Full-time Equivalent City Government Employees by Function Last Ten Fiscal Years 160 Table 16 2019 2020 2021 2022 2023 2024 6.7 6.7 6.7 6.7 7.7 7.7 1.0 1.0 1.0 1.0 1.0 1.0 32.0 30.0 30.0 28.0 28.0 27.0 0.3 0.3 0.3 0.3 0.3 0.3 2.0 2.5 2.5 2.5 2.5 2.5 2.0 2.5 2.5 2.5 2.5 2.5 1.5 1.5 1.5 1.5 1.5 1.5 1.5 1.5 1.5 1.5 1.5 1.5 47.0 46.0 46.0 44.0 45.0 44.0 161 Table 17 2015 2016 2017 2018 254 256 276 366 211 10 6 195 453 542 477 468 80 123 115 67 723 387 210 364 600 692 663 829 22 24 20 24 6 3 3 3 510,000 474,000 502,000 484,000 Note: Indicators are not available for the general government function. Public Works Water Equipment Repair (Hours) Snowplowing (Hours) Street Sweeping (Hours) New Connections Water Mains Breaks Sewer Average Daily Treatment Flow (Thousands of Gallons) Sources: City of Albertville Inspections Building/Engineering Permits Issued Fire Calls City of Albertville, Minnesota Operating Indicators By Function Last Ten Fiscal Years Function Fire 162 Table 17 2019 2020 2021 2022 2023 2024 418 414 569 549 555 600 40 20 20 80 60 9 494 696 837 863 642 652 98 100 100 125 128 76 610 412 260 608 678 212 925 900 803 1,100 634 757 25 35 65 54 77 10 2 2 2 3 3 5 511,000 521,000 521,000 517,000 520,000 553,000 163 Table 18 2015 2016 2017 2018 Public Safety Fire stations Stations 1 1 1 1 Public Works Highways and streets Streets (miles)36 38 38 38 Street lights 417 417 417 417 Traffic signals 7 7 7 7 Culture and Recreation Parks division Parks 11 11 11 11 Parks acreage 125 125 125 125 Arena/Civic Center 1 1 1 1 Baseball diamonds 4 4 4 4 Basketball courts 5 5 5 5 Bike trails (miles)5 5 5 5 Hockey rinks/outdoor 2 2 2 2 Softball diamonds 2 2 2 2 Tennis courts 5 5 5 5 Skate Park Volleyball courts 1 1 1 1 Utilities Water Miles of water main 52 52 52 52 Consumers Maximum daily capacity (gallons) Sewer Miles of sanitary sewer 37 37 37 37 Lift stations 10 10 10 10 Maximum daily treatment capacity (gallons)929,000 929,000 929,000 929,000 Storm sewer Miles of storm sewer 35 35 35 35 Source: City of Albertville Note: No capital asset indicators are available for the general government function. Function City of Albertville, Minnesota Capital Asset Statistics by Function Last Ten Fiscal Years 164 Table 18 2019 2020 2021 2022 2023 2024 1 1 1 1 1 1 39 39 39 39 39 39 417 430 430 432 432 432 7 7 7 7 8 8 11 12 12 12 12 12 125 131 131 131 131 131 1 1 1 1 1 1 4 4 4 4 4 4 5 5 5 5 5 55 5 5 5 5 5 5 2 2 2 2 2 2 2 2 2 2 2 2 5 5 5 5 5 5 1 1 1 1 1 1 - - - 52 55 55 55 55 55 37 39 39 39 39 39 10 10 10 10 10 10 929,000 929,000 929,000 929,000 929,000 929,000 35 36 36 36 36 36 165