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2025 Annual Comprehensive Financial ReportAnnual Comprehensive Financial Report For the Year Ended December 31, 2025 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, 2025 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, 2025 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 37 Statement of Activities 38 Fund Financial Statements Governmental Funds Balance Sheet 42 Reconciliation of the Balance Sheet to the Statement of Net Position 43 Statement of Revenues, Expenditures and Changes in Fund Balances 44 Reconciliation of the Statement of Revenues, Expenditures and Changes in Fund Balances to the Statement of Activities 46 Proprietary Funds Statement of Net Position 47 Statement of Revenues, Expenses and Changes in Net Position 48 Statement of Cash Flows 49 Fiduciary Funds Statement of Fiduciary Net Position 50 Statement of Changes in Fiduciary Net Position 51 Notes to the Financial Statements 53 Required Supplementary Information Schedule of Employer’s Share of Public Employees Retirement Association Net Pension Liability - General Employees Retirement Fund 88 Schedule of Employer’s Public Employees Retirement Association Contributions - General Employees Retirement Fund 88 Notes to the Required Supplementary Information - General Employees Retirement Fund 89 Schedule of Employer’s Share of Public Employees Retirement Association Net Pension Liability - Public Employees Police and Fire Fund 91 Schedule of Employer’s Public Employees Retirement Association Contributions - Public Employees Police and Fire Fund 91 Notes to the Required Supplementary Information - Public Employees Police and Fire Fund 92 Schedule of Changes in the Fire Relief Association’s Net Pension Liability (Asset) and Related Ratios 94 Schedule of Employer’s Fire Relief Association Contributions 95 Budgetary Comparison Schedule – General fund 96 Notes to the Required Supplemental Information – Budgetary Reporting 97 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, 2025 Page No. Combining and Individual Fund Financial Statements and Schedules Nonmajor Governmental Funds Combining Balance Sheet 102 Combining Statement of Revenues, Expenditures and Changes in Fund Balances 103 Nonmajor Special Revenue Funds Combining Balance Sheet 106 Combining Statement of Revenues, Expenditures and Changes in Fund Balances 107 Nonmajor Capital Projects Funds Combining Balance Sheet 110 Combining Statement of Revenues, Expenditures and Changes in Fund Balances 112 Nonmajor Proprietary Funds Statement of Net Position 114 Statement of Revenues, Expenses and Changes in Net Position 115 Statement of Cash Flows 117 General Fund Schedule of Revenues, Expenditures and Changes in Fund Balances 118 Debt Service Funds Combining Balance Sheet 122 Combining Schedule of Revenues, Expenditures and Changes in Fund Balances 124 Fiduciary Funds Combining Statement of Fiduciary Net Position 126 Combining Statement of Changes in Fiduciary Net Position 127 Table Page No. Statistical Section (Unaudited) Net Position by Component 1 132 Changes in Net Position 2 134 Fund Balances of Governmental Funds 3 138 Changes in Fund Balances of Governmental Funds 4 140 Tax Capacity, Market Value and Estimated Actual Value of Taxable Property 5 142 Property Tax Capacity Rates - Direct and Overlapping Governments 6 144 Principal Taxpayers 7 145 Property Tax Levies and Collections 8 146 Ratios of Outstanding Debt by Type 9 147 Ratios of General Bonded Debt Outstanding 10 148 Computation of Direct and Overlapping Debt 11 149 Legal Debt Margin Information 12 150 Pledged-Revenue Coverage 13 152 Demographic and Economic Statistics 14 153 Principal Employers 15 155 Full-time Equivalent City Government Employees by Function 16 156 Operating Indicators by Function 17 158 Capital Asset Statistics by Function 18 160 7 THIS PAGE IS LEFT BLANK INTENTIONALLY 8 INTRODUCTORY SECTION CITY OF ALBERTVILLE ALBERTVILLE, MINNESOTA FOR THE YEAR ENDED DECEMBER 31, 2025 9 THIS PAGE IS LEFT BLANK INTENTIONALLY 10 April 13, 2026 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, 2025. 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, 2025, 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, 2025. 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 8,569. 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. The General Fund is appropriated annually based on the adopted budget. The level of budgetary control (that is, the level at which expenditures cannot legally exceed the appropriated amount) is established at the fund level. Expenditures for departments or divisions that exceed appropriations are not authorized unless additional revenue sources or fund balance are identified and available. Unused appropriated expenditures lapse at year-end. 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 756 building permits were issued in 2025 with a total valuation of $47,601,037. •The State of Minnesota continues its expansion of Interstate 94 through the City of Albertville. •The Wright County Highway Department is expanding CR 37/137. •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. •Expansion of existing senior living facility (Engel Haus) 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: •Albertville Plaza 3rd (commercial subdivision) •Mold Tech (industrial expansion) •Costco (located in Otsego, but driving strong growth in Albertville) •New construction including: Toybox storage/car condos, Aldi, Mister Carwash Major Initiatives Maintenance and preservation of the City infrastructure and facilities is a priority for the City. In 2025, 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, 2025. 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, 2024. 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, 2024 Executive Director/CEO 15 City of Albertville Organizational Chart City Attorney City Planner Contract Services Sheriff's Department Family Youth Collaborative Assessor Senior Program Admin. Asst. Clerk II (Building Tech) Building - Planning and Zoning Volunteer Firemen Fire ChiefUtility Employees Parks Employees STMA Ice Arena Voters Committees City Council Fire Officers Planning Commission Economic Development Authority Consultants 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 16 City of Albertville, Minnesota Elected and Appointed Officials For the Year Ended December 31, 2025 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, 2025 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, 2025, 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, 2025, and the respective changes in financial position and, where applicable, cash flows thereof 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, and for 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. 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 21 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), Related Ratios, and the respective budgetary comparison schedules and related note disclosures, starting on page 88 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 statements 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 13, 2026, 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 13, 2026 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, 2025. 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 Summary Detail 25 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 the 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). 26 Both of the government-wide financial statements distinguish functions of the City that are principally supported by taxes and intergovernmental revenue (governmental activities) from other functions that are intended to recover all or a significant portion of their costs through user fees and charges (business-type activities). The governmental activities of the City include general government, public safety, public works, culture and recreation, economic development and interest on long-term debt. The business-type activities of the City include sewer, water, storm water and recycling. The government-wide financial statements start on page 37 of this report. Fund Financial Statements. A fund is a grouping of related accounts that is used to maintain control over resources that have been segregated for specific activities or objectives. The City, like other state and local governments, uses fund accounting to ensure and demonstrate compliance with finance-related legal requirements. All of the funds of the City can be divided into three categories: governmental funds, proprietary funds and fiduciary funds. Governmental Funds. Governmental funds are used to account for essentially the same functions reported as governmental activities in the government-wide financial statements. However, unlike the government-wide financial statements, governmental fund financial statements focus on near-term inflows and outflows of spendable resources, as well as on balances of spendable resources available at the end of the fiscal year. Such information may be useful in evaluating a government’s near-term financing requirements. Because the focus of governmental funds is narrower than that of the government-wide financial statements, it is useful to compare the information presented for governmental funds with similar information presented for governmental activities in the government-wide financial statements. By doing so, readers may better understand the long-term impact by the government’s near-term financing decisions. Both the governmental fund balance sheet and the governmental fund statement of revenues, expenditures and changes in fund balances provide a reconciliation to facilitate this comparison between governmental funds and governmental activities. The City maintains 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, Capital Outlay Reserve, Main Avenue Project, and Central Park Project 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 basic governmental fund financial statements start on page 42 of this report. Proprietary Funds. The City maintains one type of proprietary fund. Enterprise funds are used to report the same functions presented as business-type activities in the government-wide financial statements. The City uses enterprise funds to account for its sewer, water, storm water and recycling operations. Proprietary funds provide the same type of information as the government-wide financial statements, only in more detail. The proprietary fund financial statements provide separate information for each of the enterprise funds. The basic proprietary fund financial statements start on page 47 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 50 of this report. Notes to the Financial Statements. The notes provide additional information that is essential to a full understanding of the data provided in the government-wide and fund financial statements. The notes to the financial statements start on page 53 of this report. 27 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 88 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 102 of this report. Analysis of the City’s Finances Increase Increase 2025 2024 (Decrease)2025 2024 (Decrease) Current and Other Assets 25,857,352$ 16,761,360$ 9,095,992$ 19,324,136$ 17,749,235$ 1,574,901$ Capital Assets 26,178,115 23,504,525 2,673,590 26,950,879 26,820,444 130,435 Total Assets 52,035,467 40,265,885 11,769,582 46,275,015 44,569,679 1,705,336 Deferred Outflows of Resources 528,755 625,853 (97,098) 81,857 70,355 11,502 Long-term Liabilities Outstanding 9,882,907 2,744,064 7,138,843 15,467,534 15,110,256 357,278 Other Liabilities 680,332 411,133 269,199 390,771 405,675 (14,904) Total Liabilities 10,563,239 3,155,197 7,408,042 15,858,305 15,515,931 342,374 Deferred Inflows of Resources 539,163 632,047 (92,884) 150,740 169,628 (18,888) Net Position Net investment in capital assets 20,977,236 21,559,851 (582,615) 14,509,401 13,952,765 556,636 Restricted 4,758,556 5,877,307 (1,118,751) - - - Unrestricted 15,726,028 9,667,336 6,058,692 15,838,426 15,001,710 836,716 Total Net Position 41,461,820$ 37,104,494$ 4,357,326$ 30,347,827$ 28,954,475$ 1,393,352$ Net Position as a Percent of Total Net investment in capital assets 50.6 %58.1 %47.8 %48.2 % Restricted 11.5 15.8 - - Unrestricted 37.9 26.1 52.2 51.8 100.0 %100.0 %100.0 %100.0 % Governmental Activities Business-type Activities As shown in the table above, as of December 31, 2025, the City’s assets and deferred outflows of resources exceeded its liabilities and deferred inflows of resources. The City’s total net position increased as a result of the financial performance of the governmental activities. The following sections of the MD&A analyze the finances of the governmental activities and business-type activities separately. 28 Governmental Activities. Governmental activities increased the City’s net position, as shown below. City of Albertville’s Changes in Net Position Increase Increase 2025 2024 (Decrease)2025 2024 (Decrease) Revenues Program Revenues Charges for services 2,351,953$ 1,766,484$ 585,469$ 2,298,316$ 2,149,427$ 148,889$ Operating grants and contributions 2,516,176 793,051 1,723,125 11,271 102,826 (91,555) Capital grants and contributions 28,356 78,896 (50,540) 641,006 1,096,687 (455,681) General Revenues Taxes Property taxes 5,369,073 5,195,799 173,274 441,083 332,528 108,555 Tax increments 592,052 627,846 (35,794) - - - Franchise fees 400,728 336,872 63,856 - - - Grants and contributions not restricted to specific programs 271,171 259,035 12,136 128,927 129,624 (697) Gain on sale of capital assets - 10,856 (10,856) - - - Unrestricted investment earnings 652,299 539,135 113,164 906,045 769,495 136,550 Total Revenues 12,181,808 9,607,974 2,573,834 4,426,648 4,580,587 (153,939) Expenses General government 886,140 1,123,145 (237,005) - - - Public safety 2,535,309 2,743,870 (208,561) - - - Public works 2,061,492 2,261,304 (199,812) - - - Culture and recreation 1,277,886 1,019,553 258,333 - - - Economic development 717,656 467,423 250,233 - - - Interest on long-term debt 345,999 81,151 264,848 - - - Sewer - - - 1,855,391 1,700,097 155,294 Water - - - 698,131 501,642 196,489 Storm water - - - 310,499 334,065 (23,566) Recycling - - - 169,275 164,830 4,445 Total Expenses 7,824,482 7,696,446 128,036 3,033,296 2,700,634 332,662 Change in Net Position 4,357,326 1,911,528 2,445,798 1,393,352 1,879,953 (486,601) Net Position, January 1 37,104,494 35,192,966 1,911,528 28,954,475 27,074,522 1,879,953 Net Position, December 31 41,461,820$ 37,104,494$ 4,357,326$ 30,347,827$ 28,954,475$ 1,393,352$ Governmental Activities Business-type Activities Key elements of this increase are as follows: •Increased intergovernmental grant revenues from state and federal sources, including increased Municipal State Aid Street funding. •Growth in charges for services driven by building and housing permits, culture & recreation fees, and special fire protection services. •Stronger general revenues supported by increased property tax collections during the year. •Improved investment earnings reflecting favorable economic conditions. 29 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 19.3%, Charges for Services 20.7%, Operating Grants and Contributions 0.2%, Capital Grants and Contributions 52.2%, Taxes 2.2%, Grants and Contributions Unrestricted 5.4%, Unrestricted Investment Earnings Business-type Activities. Business-type activities increased the City’s net position as shown in the changes in net position table. Key elements of this increase are as follows: •Growth in charges for services driven by ongoing utility operations. •Increased property tax collections during the year. •Improved investment earnings reflecting favorable economic conditions. •Other grant awards related to capital and general unrestricted purposes. 30 Expenses and Program Revenues - Business-type Activities $- $200,000 $400,000 $600,000 $800,000 $1,000,000 $1,200,000 $1,400,000 $1,600,000 $1,800,000 $2,000,000 Sewer Water Storm Water Recycling Expenses Program Revenues Revenues by Source - Business-type Activities 51.8%, Charges for Services 0.3%, Operating Grants and Contributions, 14.5%, Capital Grants and Contributions 10.0%, Taxes 2.9%, Grants and Contributions Unrestricted 20.5%, Investment Earnings 31 Financial Analysis of the Government’s Funds As noted earlier, the City uses fund accounting to ensure and demonstrate compliance with finance-related legal requirements. Governmental Funds: The focus of the City’s governmental funds is to provide information on near-term inflows, outflows and balances of spendable resources. Such information is useful in assessing the City’s financing requirements. In particular, unassigned fund balance may serve as a useful measure of a government’s net resources available for spending at the end of the fiscal year. Capital Other Outlay Main Avenue Central Park Governmental Prior Year Increase/ General Reserve Project Project Funds Total Total (Decrease) Fund Balances Nonspendable 148,743$ -$ -$ -$ -$ 148,743$ 191,320$ (42,577)$ Restricted - 349,995 3,409,353 793,569 3,478,277 8,031,194 4,732,741 3,298,453 Committed - - - - 176,621 176,621 167,272 9,349 Assigned - 9,256,086 - - - 9,256,086 5,986,659 3,269,427 Unassigned 3,175,458 - - - (983,629) 2,191,829 1,769,034 422,795 3,324,201$ 9,606,081$ 3,409,353$ 793,569$ 2,671,269$ 19,804,473$ 12,847,026$ 6,957,447$ 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 percentage 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 148,743$ 191,320$ (42,577)$ Unassigned 3,175,458 2,647,909 527,549 Total Fund Balance 3,324,201$ 2,839,229$ 484,972$ General Fund expenditures 5,330,662$ 5,140,733$ Unassigned as a percent of expenditures 59.6%51.5% Total Fund Balance as a percent of expenditures 62.4%55.2% The fund balance of the City’s General fund increased during the current fiscal year as shown in the table above. The change is mainly due to increased revenues such as interest earnings, building permits, licensing for business, and licensing for non-business in excess of the budget. Other major governmental fund analysis is shown below: December 31,December 31,Increase 2025 2024 (Decrease) Capital Outlay Reserve 9,606,081$ 6,336,654$ 3,269,427$ Fund balance increased as a result of the tax levy in excess of expenditures as the city is building reserves for future capital projects Main Avenue Project 3,409,353$ -$ 3,409,353$ Fund balance increased due to the cash received from the bond issuance of the Main Avenue Project. The project will be continuing into 2026. Central Park Project 793,569$ -$ 793,569$ Fund balance increased due to the cash received from the bond issuance of the Central Park Project The project will be continuing into 2026. 32 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/ 2025 2024 (Decrease) Sewer 24,216,678$ 23,045,706$ 1,170,972$ Increased net position can be attributed to capital contributions and revenues in excess of expenses Water 3,716,632$ 3,569,790$ 146,842$ Increased net position is due to capital contributions and revenues in excess of expenses Capital Asset and Debt Administration Capital Assets: The City’s investment in capital assets for its governmental and business-type activities as of December 31, 2025, is shown below in the 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 •Main Avenue Improvements •Wastewater Treatment Plant Construction •Linwood Park Improvements •Purchase of Public Works vehicles Additional information on the City’s capital assets can be found in Note 3B starting on page 65 of this report. City of Albertville’s Capital Assets (Net of Depreciation) Increase Increase 2025 2024 (Decrease)2025 2024 (Decrease) Land 4,490,242$ 4,490,242$ -$ 351,834$ 351,834$ -$ Construction in Progress 4,897,537 1,254,646 3,642,891 10,973,483 10,591,635 381,848 Buildings 3,521,531 2,458,078 1,063,453 2,370,194 2,488,188 (117,994) Infrastructure 9,391,670 11,312,186 (1,920,516) 12,604,223 13,066,058 (461,835) Land Improvements 1,431,131 1,604,630 (173,499) - - - Machinery and Equipment 781,935 871,332 (89,397) 508,457 198,121 310,336 Vehicles 1,664,069 1,513,411 150,658 142,688 124,608 18,080 Total 26,178,115$ 23,504,525$ 2,673,590$ 26,950,879$ 26,820,444$ 130,435$ Governmental Activities Business-type Activities 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 assessments, 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. 33 City of Albertville’s Outstanding Debt Increase Increase 2025 2024 (Decrease)2025 2024 (Decrease) General Obligation Special Assessment Bonds 9,171,458$ 1,944,674$ 7,226,784$ -$ -$ -$ General Obligation Revenue Bonds - - - 15,099,693 14,691,000 408,693 Total 9,171,458$ 1,944,674$ 7,226,784$ 15,099,693$ 14,691,000$ 408,693$ Governmental Activities Business-type Activities The City’s total bonded debt increased during the current fiscal year. The increase was a result of issuance of general obligation bonds, offset by decreases from 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. Additional information on the City’s long-term debt can be found in Note 3D starting on page 67 of this report. Currently Known Facts, Decisions, or Conditions 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 2 commercial businesses added in 2025 plus 1 industrial expansion 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, loan or certificate as those amounts individually doesn’t seem fiscal responsible to borrow 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 $823,878 has all been used for the capital purchases and all projects are completed. Requests for Information This financial report is designed to provide a general overview of the City’s finances for all those with an interest in the City’s finances. Questions concerning any of the information provided in this report or requests for additional financial information should be addressed to the Finance Director, City of Albertville, 5959 Main Avenue, Albertville, Minnesota 55301. 34 GOVERNMENT-WIDE FINANCIAL STATEMENTS CITY OF ALBERTVILLE ALBERTVILLE, MINNESOTA FOR THE YEAR ENDED DECEMBER 31, 2025 35 THIS PAGE IS LEFT BLANK INTENTIONALLY 36 City of Albertville, Minnesota Statement of Net Position December 31, 2025 Governmental Business-type Activities Activities Total Assets Cash and temporary investments 19,405,348$ 18,931,122$ 38,336,470$ Receivables Interest 93,373 - 93,373 Taxes 57,946 - 57,946 Accounts 173,863 246,024 419,887 Notes - due within one year 73,148 - 73,148 Notes - due in more than one year 438,890 - 438,890 Special assessments 422,566 96,505 519,071 Due from other governments 3,936,575 16,159 3,952,734 Prepaid items 97,743 34,326 132,069 Equity interest in joint venture 289,239 - 289,239 Net pension asset 327,287 - 327,287 Land held for resale 541,374 - 541,374 Capital assets Land and construction in progress 9,387,779 11,325,317 20,713,096 Depreciable assets, net of accumulated depreciation 16,790,336 15,625,562 32,415,898 Total Assets 52,035,467 46,275,015 98,310,482 Deferred Outflows of Resources Deferred pension resources 528,755 81,857 610,612 Liabilities Accounts and contracts payable 365,430 34,670 400,100 Escrows payable 119,996 - 119,996 Due to other governments 32,102 123,201 155,303 Accrued interest payable 144,830 221,697 366,527 Accrued salaries payable 17,974 11,203 29,177 Noncurrent liabilities Due within one year Long-term liabilities 232,600 557,793 790,393 Due in more than one year Long-term liabilities 9,082,994 14,662,380 23,745,374 Net pension liability 567,313 247,361 814,674 Total Liabilities 10,563,239 15,858,305 26,421,544 Deferred Inflows of Resources Deferred pension resources 539,163 150,740 689,903 Net Position Net investment in capital assets 20,977,236 14,509,401 35,486,637 Restricted for Net pension asset 327,287 - 327,287 Public safety - charitable gambling 132,197 - 132,197 Debt service 2,156,589 - 2,156,589 Park improvements 1,417,408 - 1,417,408 Tax increment 375,080 - 375,080 Public safety aid 349,995 - 349,995 Unrestricted 15,726,028 15,838,426 31,564,454 Total Net Position 41,461,820$ 30,347,827$ 71,809,647$ The notes to the financial statements are an integral part of this statement. 37 City of Albertville, Minnesota Statement of Activities For the Year Ended December 31, 2025 Operating Capital Grants Charges for Grants and and Expenses Services Contributions Contributions Governmental Activities General government 886,140$ 716,193$ 116,508$ 16,341$ Public safety 2,535,309 715,085 384,751 - Public works 2,061,492 115,820 1,984,727 15 Culture and recreation 1,277,886 804,855 21,351 12,000 Economic development 717,656 - 8,839 - Interest on long-term debt 345,999 - -- Total Governmental Activities 7,824,482 2,351,953 2,516,176 28,356 Business-type Activities Sewer 1,855,391 1,234,470 8,683 535,750 Water 698,131 579,156 - 105,256 Storm water 310,499 308,053 - - Recycling 169,275 176,637 2,588 - Total Business-type Activities 3,033,296 2,298,316 11,271 641,006 Total 10,857,778$ 4,650,269$ 2,527,447$ 669,362$ 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 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. 38 Governmental Business-type Activities Activities Total (37,098)$ -$ (37,098)$ (1,435,473) - (1,435,473) 39,070 - 39,070 (439,680) - (439,680) (708,817) - (708,817) (345,999) - (345,999) (2,927,997) - (2,927,997) - (76,488) (76,488) - (13,719) (13,719) - (2,446) (2,446) - 9,950 9,950 - (82,703) (82,703) (2,927,997) (82,703) (3,010,700) 5,109,418 441,083 5,550,501 259,655 - 259,655 592,052 - 592,052 400,728 - 400,728 271,171 128,927 400,098 652,299 906,045 1,558,344 7,285,323 1,476,055 8,761,378 4,357,326 1,393,352 5,750,678 37,104,494 28,954,475 66,058,969 41,461,820$ 30,347,827$ 71,809,647$ and Changes in Net Position Net (Expenses) Revenues The notes to the financial statements are an integral part of this statement. 39 THIS PAGE IS LEFT BLANK INTENTIONALLY 40 FUND FINANCIAL STATEMENTS CITY OF ALBERTVILLE ALBERTVILLE, MINNESOTA FOR THE YEAR ENDED DECEMBER 31, 2025 41 Capital Other Total Outlay Main Avenue Central Park Governmental Governmental General Reserve Project Project Funds Funds Assets Cash and temporary investments 3,080,008$ 8,229,608$ 3,496,463$ 938,802$ 3,660,467$ 19,405,348$ Receivables Taxes 57,946 - - - - 57,946 Accounts 164,863 9,000 - - - 173,863 Special assessments 186,777 - - - 235,789 422,566 Interest 90,642 - - - 2,731 93,373 Notes - - - - 512,038 512,038 Advances to other funds - 991,929 - - - 991,929 Due from other governments - 936,575 3,000,000 - - 3,936,575 Prepaid items 97,743 - - - - 97,743 Land held for resale 51,000 490,374 - - - 541,374 Total Assets 3,728,979$ 10,657,486$ 6,496,463$ 938,802$ 4,411,025$ 26,232,755$ Liabilities Accounts and contracts payable 27,477$ 105,610$ 87,110$ 145,233$ -$ 365,430$ Escrows payable 119,996 - - - - 119,996 Advances from other funds - - - - 991,929 991,929 Due to other governments 22,882 9,220 - - - 32,102 Accrued salaries payable 17,974 - - - - 17,974 Total Liabilities 188,329 114,830 87,110 145,233 991,929 1,527,431 Deferred Inflows of Resources Unavailable revenue - property taxes 27,333 - - - - 27,333 Unavailable revenue - special assessments 189,116 - - - 235,789 424,905 Unavailable revenue - notes/intergovernmental - 936,575 3,000,000 - 512,038 4,448,613 Total Deferred Inflows of Resources 216,449 936,575 3,000,000 - 747,827 4,900,851 Fund Balances Nonspendable 148,743 - - - - 148,743 Restricted - 349,995 3,409,353 793,569 3,478,277 8,031,194 Committed - - - - 176,621 176,621 Assigned - 9,256,086 - - - 9,256,086 Unassigned 3,175,458 - - - (983,629) 2,191,829 Total Fund Balances 3,324,201 9,606,081 3,409,353 793,569 2,671,269 19,804,473 Total Liabilities, Deferred Inflows of Resources and Fund Balances 3,728,979$ 10,657,486$ 6,496,463$ 938,802$ 4,411,025$ 26,232,755$ City of Albertville, Minnesota Balance Sheet Governmental Funds December 31, 2025 The notes to the financial statements are an integral part of this statement. 42 City of Albertville, Minnesota Reconciliation of the Balance Sheet to the Statement of Net Position December 31, 2025 Amounts reported for the governmental activities in the statement of net position are different because Total Fund Balances - Governmental 19,804,473$ Governmental funds do not report an asset for equity interest in the joint venture 289,239 Capital assets used in governmental activities are not financial resources and therefore are not reported as assets in governmental funds. Cost of capital assets 60,152,342 Less: accumulated depreciation (33,974,227) 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 (144,136) Bond principal payable (9,171,458) Net pension liability (567,313) Some receivables are not available soon enough to pay for the current period's expenditures, and therefore are deferred in the funds. Special assessments 424,905 Taxes 27,333 Notes/intergovernmental 4,448,613 Governmental funds do not report long-term amounts related to pension. Deferred outflows of pension resources 528,755 Deferred inflows of pension resources (539,163) Net pension asset 327,287 Governmental funds do not report a liability for accrued interest until due and payable.(144,830) Total Net Position - Governmental Activities 41,461,820$ The notes to the financial statements are an integral part of this statement. 43 Formerly Major Fund Capital Debt Outlay Main Avenue General Service Reserve Project Revenues Taxes 3,113,128$ 2,344,018$ -$ Licenses and permits 463,552 - - Intergovernmental 542,736 - - Charges for services 1,260,962 - - Fines and forfeitures 32,441 - - Special assessments 67,044 15 - Investment earnings 148,654 384,243 - Miscellaneous 187,117 177,375 - Total Revenues 5,815,634 2,905,651 - Expenditures Current General government 1,306,386 - - Public safety 2,432,094 - - Public works 713,381 - - Culture and recreation 858,873 - - Economic development 19,928 - - Capital outlay General government - 46,171 - Public safety - 327,512 - Public works - 233,077 2,070,100 Culture and recreation - 236,403 - Economic development - 8,978 - Debt service Principal - - - Interest and other - - - Bond issuance costs - - 139,481 Total Expenditures 5,330,662 852,141 2,209,581 Excess (Deficiency) of Revenues Over (Under) Expenditures 484,972 2,053,510 (2,209,581) Other Financing Sources (Uses) Transfers in - 1,229,935 - Bond issuance - - 5,423,313 Premiums on bonds sold - - 195,621 Transfers out - (14,018) - Total Other Financing Sources (Uses)- 1,215,917 5,618,934 Net Change in Fund Balances 484,972 3,269,427 3,409,353 Fund Balances, January 1, as previously stated 2,839,229 2,766,556 6,336,654 - Change within financial reporting entity - (2,766,556) - - Fund balance, January 1, as adjusted 2,839,229 - 6,336,654 - Fund Balances, December 31 3,324,201$ -$9,606,081$ 3,409,353$ City of Albertville, Minnesota Statement of Revenues, Expenditures and Changes in Fund Balances Governmental Funds For the Year Ended December 31, 2025 The notes to the financial statements are an integral part of this statement. 44 Other Total Central Park Governmental Governmental Project Funds Funds -$906,095$ 6,363,241$ - - 463,552 - 1,551 544,287 - 354,109 1,615,071 - -32,441 - 42,523 109,582 - 119,402 652,299 - 202,534 567,026 - 1,626,214 10,347,499 - 1,200 1,307,586 - -2,432,094 - -713,381 13,459 - 872,332 - 688,750 708,678 - - 46,171 - - 327,512 - - 2,303,177 1,192,972 256,679 1,686,054 - - 8,978 - 593,000 593,000 - 36,895 36,895 41,571 - 181,052 1,248,002 1,576,524 11,216,910 (1,248,002) 49,690 (869,411) - 1,128,207 2,358,142 1,940,334 166,353 7,530,000 101,237 - 296,858 - (2,344,124) (2,358,142) 2,041,571 (1,049,564) 7,826,858 793,569 (999,874) 6,957,447 - 904,587 12,847,026 - 2,766,556 - - 3,671,143 12,847,026 793,569$ 2,671,269$ 19,804,473$ The notes to the financial statements are an integral part of this statement. 45 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, 2025 Amounts reported for governmental activities in the statement of activities are different because Total Change in Fund Balances 6,957,447$ Governmental funds do not report income or loss in a joint venture.19,453 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 4,254,914 Depreciation expense (1,581,324) 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 593,000 Bonds issued (7,530,000) Premium on debt issued (296,858) Interest on long-term debt in the statement of activities differs from the amount reported in the governmental funds 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.(128,052) Long-term pension activity is not reported in governmental funds. Pension expense 240,109 Pension revenue 587 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 13,781 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 (84,387) Taxes (1,388) Intergovernmental 1,900,044 Change in Net Position - Governmental Activities 4,357,326$ The notes to the financial statements are an integral part of this statement. 46 Sewer Water Nonmajor Total Assets Current Assets Cash and temporary investments 13,408,025$ 4,177,177$ 1,345,920$ 18,931,122$ Receivables Accounts 94,346 113,263 38,415 246,024 Delinquent special assessments - - 18 18 Special assessments, current portion 13,479 10,705 4,052 28,236 Due from other governments 16,159 - - 16,159 Prepaid items 19,522 12,953 1,851 34,326 Total Current Assets 13,551,531 4,314,098 1,390,256 19,255,885 Noncurrent Assets Special assessments, net of current portion 57,963 10,288 - 68,251 Capital Assets Land 205,722 - 146,112 351,834 Buildings 4,706,363 13,330 - 4,719,693 Infrastructure 16,976,383 1,401,010 1,509,297 19,886,690 Machinery and equipment 613,668 352,021 - 965,689 Vehicles 326,103 216,921 69,177 612,201 Construction in progress 10,973,483 - - 10,973,483 Less: Accumulated depreciation (8,967,453) (1,021,096) (570,162) (10,558,711) Net Capital Assets 24,834,269 962,186 1,154,424 26,950,879 Total Noncurrent Assets 24,892,232 972,474 1,154,424 27,019,130 Total Assets 38,443,763 5,286,572 2,544,680 46,275,015 Deferred Outflows of Resources Deferred pension resources 42,080 20,111 19,666 81,857 Liabilities Current Liabilities Accounts and contracts payable 6,728 9,257 18,685 34,670 Due to other governments - 113,201 10,000 123,201 Accrued interest payable 200,151 21,546 - 221,697 Accrued salaries payable 3,223 5,164 2,816 11,203 Compensated absences payable, current portion 11,894 18,732 7,167 37,793 Bonds payable, current portion 509,600 10,400 - 520,000 Total Current Liabilities 731,596 178,300 38,668 948,564 Noncurrent Liabilities Compensated absences payable 26,552 40,494 15,641 82,687 Bonds payable 13,378,017 1,201,676 - 14,579,693 Net pension liability 58,085 128,952 60,324 247,361 Total Noncurrent Liabilities 13,462,654 1,371,122 75,965 14,909,741 Total Liabilities 14,194,250 1,549,422 114,633 15,858,305 Deferred Inflows of Resources Deferred pension resources 74,915 40,629 35,196 150,740 Net Position Net investment in capital assets 12,427,867 927,110 1,154,424 14,509,401 Unrestricted 11,788,811 2,789,522 1,260,093 15,838,426 Total Net Position 24,216,678$ 3,716,632$ 2,414,517$ 30,347,827$ City of Albertville, Minnesota Statement of Net Position Proprietary Funds December 31, 2025 Business-type Activities - Enterprise Funds The notes to the financial statements are an integral part of this statement. 47 Sewer Water Nonmajor Total Operating Revenues Charges for services 1,234,470$ 579,156$ 484,690$ 2,298,316$ Operating Expenses Personal services 428,313 281,921 213,109 923,343 Supplies 67,325 36,068 186 103,579 Professional services 27,780 18,458 67,041 113,279 Utilities 119,681 42,506 - 162,187 Insurance 19,261 9,881 1,876 31,018 Repairs and maintenance 47,526 82,399 158 130,083 Depreciation 578,815 66,468 37,139 682,422 Other charges 101,217 113,952 160,265 375,434 Total Operating Expenses 1,389,918 651,653 479,774 2,521,345 Operating Income (Loss)(155,448) (72,497) 4,916 (223,029) Nonoperating Revenues (Expenses) Property taxes 441,083 - - 441,083 Interest income 677,450 160,561 68,034 906,045 Intergovernmental 128,927 - 2,588 131,515 Interest expense and other (465,473) (46,478) - (511,951) Other income 8,683 - - 8,683 Total Nonoperating Revenues (Expenses)790,670 114,083 70,622 975,375 Income (Loss) Before Contributions 635,222 41,586 75,538 752,346 Contributions Capital contributions 535,750 105,256 - 641,006 Change in Net Position 1,170,972 146,842 75,538 1,393,352 Net Position, January 1 23,045,706 3,569,790 2,338,979 28,954,475 Net Position, December 31 24,216,678$ 3,716,632$ 2,414,517$ 30,347,827$ 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, 2025 The notes to the financial statements are an integral part of this statement. 48 Sewer Water Nonmajor Totals Cash Flows from Operating Activities Receipts from customers and users 1,247,986$ 571,207$ 466,701$ 2,285,894$ Payments to suppliers (432,960) (304,514) (203,472) (940,946) Payments to employees (457,334) (305,516) (238,770) (1,001,620) Net Cash Provided by (Used) Operating Activities 357,692 (38,823) 24,459 343,328 Cash Flows from Noncapital Financing Activities Advance to other funds - - 36,000 36,000 Intergovernmental receipts 128,927 - 2,588 131,515 Tax receipts 441,083 - -441,083 Net Cash Provided by Noncapital Financing Activities 570,010 - 38,588 608,598 Cash Flows from Capital and Related Financing Activities Acquisition of capital assets (722,353) (90,504) - (812,857) Capital contributions 524,956 122,702 - 647,658 Bond proceeds - 1,185,000 - 1,185,000 Premium on bonds issued - 17,016 - 17,016 Interest paid on bonds (496,884) (25,593) - (522,477) Principal paid on bonds (759,600) (10,400) - (770,000) Net Cash Provided (Used) by Capital and Related Financing Activities (1,453,881) 1,198,221 - (255,660) Cash Flows from Investing Activities Interest received on investments 677,450 160,561 68,034 906,045 Net Increase (Decrease) in Cash and Cash Equivalents 151,271 1,319,959 131,081 1,602,311 Cash and Cash Equivalents, January 1 13,256,754 2,857,218 1,214,839 17,328,811 Cash and Cash Equivalents, December 31 13,408,025$ 4,177,177$ 1,345,920$ 18,931,122$ Reconciliation of Operating Income (Loss) to Net Cash Provided by Operating Activities Operating income (loss)(155,448)$ (72,497)$ 4,916$ (223,029)$ Adjustments to reconcile operating income (loss) to net cash provided by operating activities Other income related to operations 8,683 - - 8,683 Depreciation 578,815 66,468 37,139 682,422 (Increase) decrease in assets/deferred outflows of resources Accounts receivable 6,124 (7,949) (13,971) (15,796) Prepaids 5,388 (2,567) 454 3,275 Due from other governments (1,291) - 2,588 1,297 Special assessments receivable - - (4,018) (4,018) Deferred pension resources (2,881) (5,870) (2,751) (11,502) Increase (decrease) in liabilities/deferred inflows of resources Accounts payable (55,511) (48,841) 15,600 (88,752) Due to other governments (47) 50,158 10,000 60,111 Accrued salaries payable 904 1,740 884 3,528 Unearned revenue - - (2,588) (2,588) Compensated absences payable (10,062) (6,342) (15,868) (32,272) Net pension liability (9,037) (6,193) (3,913) (19,143) Deferred pension resources (7,945) (6,930) (4,013) (18,888) Net Cash Provided (Used) by Operating Activities 357,692$ (38,823)$ 24,459$ 343,328$ Schedule of Noncash Capital and Financing Activities Amortization of bond premiums 22,983$ 340$ -$ 23,323$ City of Albertville, Minnesota Statement of Cash Flows Proprietary Funds For the Year Ended December 31, 2025 Business-type Activities - Enterprise Funds The notes to the financial statements are an integral part of this statement. 49 Custodial Funds Assets Cash and temporary investments 1,090,608$ Accounts receivable 107,224 Inventory 3,078 Prepaid items 13,383 Total Assets 1,214,293 Liabilities Accounts payable 8,844 Net Position Restricted for organizations and other governments 1,205,449$ City of Albertville, Minnesota Statement of Fiduciary Net Position Fiduciary Funds December 31, 2025 The notes to the financial statements are an integral part of this statement. 50 Fiduciary Funds Custodial Funds AdditionsContributions Charges for services 830,744$ Donations 2,250 Concessions 91,226 Total Contributions 924,220 Investment earnings 48,309 Miscellaneous 58,436 Total Additions 1,030,965 Deductions Professional services 401,938 Supplies 39,643 Utilities 246,653 Insurance 32,899 Repairs and maintenance 114,133 Capital outlay 33,513 Miscellaneous 26,684 Total Deductions 895,463 Net Increase (Decrease) in Fiduciary Net Position 135,502 Net Position, January 1 1,069,947 Net Position, December 31 1,205,449$ City of Albertville, Minnesota Statement of Changes in Fiduciary Net Position For the Year Ended December 31, 2025 The notes to the financial statements are an integral part of this statement. 51 THIS PAGE IS LEFT BLANK INTENTIONALLY 52 City of Albertville, Minnesota Notes to the Financial Statements December 31, 2025 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 legally separate entity created to carry out economic development activities. The EDA is governed by five members, which consist 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 includes 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 is 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. 53 City of Albertville, Minnesota Notes to the Financial Statements December 31, 2025 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, entitlements 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 Capital Outlay Reserve Fund accounts for the accumulation of resources necessary to fund future capital improvements and equipment purchases. The Main Avenue Project Fund accounts for the financial resources used to plan, design, reconstruct, and improve Main Avenue. The Central Park Project Fund accounts for the accumulation and use of resources dedicated to the development and improvement of Central Park facilities. 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. 54 City of Albertville, Minnesota Notes to the Financial Statements December 31, 2025 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 entity’s 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. 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. 55 City of Albertville, Minnesota Notes to the Financial Statements December 31, 2025 Note 1: Summary of Significant Accounting Policies (Continued) 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, 2025: • Brokered Certificates of Deposit are valued using quoted market prices (Level 2 inputs) • Municipal Bonds are valued using a matrix pricing model (Level 2 inputs) • Governmental Securities are valued using a matrix pricing model (Level 1 inputs) • Mortgage Backed Securities are valued using a matrix pricing model (Level 1 inputs) See investments disclosure in note 3 for additional information. 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 contacting the League of Minnesota Cities Finance Department at 145 University Avenue West. St. Paul, Minnesota, 55103-2044 or call (651) 281-1200. 56 City of Albertville, Minnesota Notes to the Financial Statements December 31, 2025 Note 1: Summary of Significant Accounting Policies (Continued) 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 investments 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, 2025. 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. Accounts Receivable Accounts receivable include amounts billed for services provided before year end. To the extent 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. 57 City of Albertville, Minnesota Notes to the Financial Statements December 31, 2025 Note 1: Summary of Significant Accounting Policies (Continued) 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 based on whether certain criteria are met. The forgivable portion of the notes is offset by an allowance for uncollectible accounts. 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. The City uses the consumption method to account for all prepaid items. 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 amounts. 58 City of Albertville, Minnesota Notes to the Financial Statements December 31, 2025 Note 1: Summary of Significant Accounting Policies (Continued) 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 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 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 Fire Relief Association is as follows: GERP PEPFF PEDCP FRA Total City's proportionate share (15,377)$ 30,416$ 248$ 62,035$ 77,323$ Proportionate share of State's contribution (2,527) 2,207 - - (320) Total pension expense (17,904)$ 32,623$ 248$ 62,035$ 77,003$ 59 City of Albertville, Minnesota Notes to the Financial Statements December 31, 2025 Note 1: Summary of Significant Accounting Policies (Continued) 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. Compensated absences liability at year-end is shown in the chart below for governmental and business-type activities. Governmental Business-type activities activities Total Compensated absences 144,136$ 120,480$ 264,616$ Long-term Obligations In the government-wide financial statements, 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 effective interest method. Bonds payable are reported net of the applicable bond premium or discount. Bond issuance costs are reported as an expense in the period incurred. In the fund financial statements, governmental fund types recognize 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 receivables. 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. 60 City of Albertville, Minnesota Notes to the Financial Statements December 31, 2025 Note 1: Summary of Significant Accounting Policies (Continued) 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 are 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. 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 acquiring capital assets. b. Restricted net position - Consists 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 position that does 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 2025. 61 City of Albertville, Minnesota Notes to the Financial Statements December 31, 2025 Note 2: Stewardship, Compliance and Accountability (Continued) B. Deficit Fund Equity The following funds had deficit fund balances as of December 31, 2025: Amount Nonmajor TIF #12 Schultz & Schupp 420$ TIF #17 Old Castle 169,692 TIF #20 Scherer Brothers 540,196 Mold Tech 248,513 GA Engel House 14,569 TIF #21 Medart 10,239 Fund The deficit fund balances will be eliminated with future tax increments. C. Excess of Expenditures over Appropriations For the year ended December 31, 2025 expenditures exceeded appropriations in the following fund: Excess of Expenditures Final Over Fund Budget Actual Appropriations General 4,553,805$ 5,330,662$ 776,857$ 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; 62 City of Albertville, Minnesota Notes to the Financial Statements December 31, 2025 Note 3: Detailed Notes on All Funds (Continued) • General obligation securities of any state or local government with taxing powers which is rated “A” or better by a national bond rating service, or revenue obligation securities of any state or local government with taxing powers which is rated “AA” or better by a national bond rating service; • General obligation securities of a local government with taxing powers may be pledged as collateral against funds deposited by that same local government entity; • Irrevocable standby letters of credit issued by Federal Home Loan Banks to a municipality accompanied by written evidence that the bank’s public debt is rated “AA” or better by Moody’s Investors Service, Inc., or Standard & Poor’s Corporation; and • Time deposits that are fully insured by any federal agency. Minnesota statutes require that all collateral shall be placed in safekeeping in a restricted account at a Federal Reserve Bank, or in an account at a trust department of a commercial bank or other financial institution that is not owned or controlled by the financial institution furnishing the collateral. The selection should be approved by the government entity. At year end, the City’s carrying amount of deposits, bank balance, FDIC coverage and pledged collateral are shown in the chart below. Carrying amount of deposits 1,658,854$ Bank balance 2,061,561$ Covered by FDIC (500,000) Collateralized with securities pledged in City's name 1,561,561$ 63 City of Albertville, Minnesota Notes to the Financial Statements December 31, 2025 Note 3: Detailed Notes on All Funds (Continued) Investments As of December 31, 2025, 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 4,398,782$ -$ -$ -$ Brokered Money Market Funds N/A Less than 1 year 14,827,628 - - - Non-pooled Investments at Fair Value Brokered Certificate of Deposit NA Less than 1 year 1,610,319 - 1,610,319 - Brokered Certificate of Deposit NA 1 to 5 years 2,540,116 - 2,540,116 - Municipal Bond AA-1 to 5 years 588,333 - 588,333 - Municipal Bond AA 1 to 5 years 1,907,101 - 1,907,101 - Municipal Bond AA+1 to 5 years 805,366 - 805,366 - Municipal Bond AAA 1 to 5 years 932,726 - 932,726 - Municipal Bond AA More than 5 years 454,505 - 454,505 - Governmental Securities NA Less than 1 year 242,765 242,765 - - Governmental Securities NA 1 to 5 years 2,290,420 2,290,420 - - Governmental Securities NA More than 5 years 248,424 248,424 - - Mortgage Backed Securities NA 1 to 5 years 3,258,406 3,258,406 - - Mortgage Backed Securities NA More than 5 years 3,662,484 3,662,484 - - Total Investments 37,767,375$ 9,702,499$ 8,838,466$ -$ 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. 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 1,658,854$ Investments 37,767,375 Cash on Hand 849 Total 39,427,078$ Cash and Investments Statement of net position Cash and temporary investments 38,336,470$ Statement of Fiduciary net position 1,090,608 Total 39,427,078$ 64 City of Albertville, Minnesota Notes to the Financial Statements December 31, 2025 Note 3: Detailed Notes on All Funds (Continued) B. Capital Assets Capital asset activity for the year ended December 31, 2025 was as follows: Beginning Ending Balance Increases Decreases Balance Governmental Activities Capital Assets not Being Depreciated Land 4,490,242$ -$ -$ 4,490,242$ Construction in progress 1,254,646 3,642,891 4,897,537 Total Capital Assets not Being Depreciated 5,744,888 3,642,891 - 9,387,779 Capital Assets Being Depreciated Buildings 6,584,444 111,363 - 6,695,807 Infrastructure 34,870,960 - - 34,870,960 Land improvements 3,523,936 69,866 - 3,593,802 Machinery and equipment 1,852,395 149,597 - 2,001,992 Vehicles 3,320,805 281,197 - 3,602,002 Total Capital Assets Being Depreciated 50,152,540 612,023 - 50,764,563 Less Accumulated Depreciation for Buildings (3,008,870) (165,406) - (3,174,276) Infrastructure (24,534,972) (944,318) - (25,479,290) Land improvements (2,046,001) (116,670) - (2,162,671) Machinery and equipment (1,070,469) (149,588) - (1,220,057) Vehicles (1,732,591) (205,342) - (1,937,933) Total Accumulated Depreciation (32,392,903) (1,581,324) - (33,974,227) Total Capital Assets Being Depreciated, Net 17,759,637 (969,301) - 16,790,336 Governmental Activities Capital Assets, Net 23,504,525$ 2,673,590$ -$ 26,178,115$ 65 City of Albertville, Minnesota Notes to the Financial Statements December 31, 2025 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 10,591,635 381,848 - 10,973,483 Total Capital Assets not Being Depreciated 10,943,469 381,848 - 11,325,317 Capital Assets Being Depreciated Buildings 4,719,693 - - 4,719,693 Infrastructure 19,886,690 - - 19,886,690 Machinery and equipment 571,255 394,434 - 965,689 Vehicles 575,626 36,575 - 612,201 Total Capital Assets Being Depreciated 25,753,264 431,009 - 26,184,273 Less Accumulated Depreciation for Buildings (2,231,505) (117,994) - (2,349,499) Infrastructure (6,820,632) (461,835) - (7,282,467) Machinery and equipment (373,134) (84,098) - (457,232) Vehicles (451,018) (18,495) - (469,513) Total Accumulated Depreciation (9,876,289) (682,422) - (10,558,711) Total Capital Assets Being Depreciated, Net 15,876,975 (251,413) - 15,625,562 Business-type Activities Capital Assets, Net 26,820,444$ 130,435$ -$ 26,950,879$ Depreciation expense was charged to functions/programs of the City as follows: Governmental Activities General government 152,608$ Public safety 197,645 Public works 1,125,065 Culture and recreation 106,006 Total Depreciation Expense - Governmental Activities 1,581,324$ Business-type Activities Sewer 578,815$ Water 66,468 Storm water 37,139 Total Depreciation Expense - Business-type Activities 682,422$ C. Advances to/from other Funds and Transfers The composition of interfund balances as of December 31, 2025 is as follows: Amount Capital Outlay Reserve Other Governmental Funds 991,929$ Payable FundReceivable Fund The above interfund balance is to eliminate deficit cash balances and finance projects in multiple different funds. 66 City of Albertville, Minnesota Notes to the Financial Statements December 31, 2025 Note 3: Detailed Notes on All Funds (Continued) The City made transfers during the year as shown and described below: Capital Other Outlay Governmental Reserve Funds Total Transfer Out Capital Outlay Reserve -$ 14,018$ 14,018$ Other Governmental Funds 1,229,935 1,114,189 2,344,124 Total 1,229,935$ 1,128,207$ 2,358,142$ Fund Transfer In During the year ended December 31, 2025, the City made the following transfers: •The City made a transfer in the current year to close out the TIF 16 Mold Tech fund. The Capital Outlay Reserve fund transferred $14,018 into the fund. •The City transferred $1,114,189 between debt service funds to reallocate cash balances to the 2025A G.O. improvement fund. The other fund’s debt has matured. •The City transferred ownership of interfund balances and assets held for resale, totaling $1,229,935, from the debt service funds to the Capital Outlay Reserve fund. D.Long-term Debt General Obligation Bonds The City issues general obligation bonds to provide funds for the acquisition and construction of major capital facilities. General obligation bonds have been issued for both governmental activities and business-type activities. These bonds are reported in the proprietary funds if they are expected to be repaid from proprietary fund revenues. General obligation bonds are direct obligations of the City and pledge the full faith and credit of the City. General Obligation Special Assessment Bonds and Improvement Notes The following bonds were issued to finance various improvement projects in the City and will be repaid with the collection of special assessment levies. Authorized Issue Maturity Balance at and Issued Date Date Year End G.O. Improvement Note, Series 2012 4,113,700$ 1.28 %03/23/12 08/20/32 1,346,000$ G.O. Improvement Bonds, Series 2025A 7,530,000 4.00 - 5.00 07/07/25 02/01/46 7,530,000 Total G.O. Special Assessment Bonds and Improvement Notes 8,876,000$ Rate Interest Description 67 City of Albertville, Minnesota Notes to the Financial Statements December 31, 2025 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 2026 185,000$ 348,066$ 533,066$ 2027 477,000 336,626 813,626 2028 500,000 319,238 819,238 2029 507,000 301,187 808,187 2030 535,000 282,360 817,360 2031 - 2035 2,362,000 1,105,424 3,467,424 2036 - 2040 2,415,000 627,500 3,042,500 2041 - 2045 1,605,000 198,100 1,803,100 2046 290,000 5,800 295,800 Total 8,876,000$ 3,524,301$ 12,400,301$ 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, principal and interest payments, and the percentage of revenue required to cover principal and interest payments are as follows: Net Operating Revenues 1,234,470$ 579,156$ Principal and Interest 1,256,484 35,993 Percentage of Revenues 102 %6 % Sewer Water The components of the general obligation revenue 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 40,000$ G.O. Sewer Revenue Bonds, Series 2019A 5,720,000 2.00 - 3.00 09/24/19 02/01/39 4,225,000 G.O. Disposal System Bonds, Series 2023A 9,400,000 4.00 - 5.00 06/13/23 02/01/49 9,190,000 G.O. Water Revenue Bonds, Series 2025A 1,185,000 4.00 - 5.00 07/07/25 02/01/51 1,185,000 Total G.O. Revenue Bonds 14,640,000$ Rate Interest Description 68 City of Albertville, Minnesota Notes to the Financial Statements December 31, 2025 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 2026 520,000$ 521,650$ 1,041,650$ 2027 525,000 500,803 1,025,803 2028 550,000 480,753 1,030,753 2029 565,000 461,203 1,026,203 2030 585,000 440,928 1,025,928 2031 - 2035 3,245,000 1,877,541 5,122,541 2036 - 2040 3,455,000 1,318,029 4,773,029 2041 - 2045 2,580,000 793,713 3,373,713 2046 - 2050 2,540,000 233,388 2,773,388 2051 75,000 1,591 76,591 Total 14,640,000$ 6,629,599$ 21,269,599$ Business-type Activities Changes in Long-term Liabilities Long-term liability activity for the year ended December 31, 2025 was as follows: Beginning Ending Due Within Balance Increases Decreases Balance One Year Governmental Activities Bonds Payable G.O. Special Assessment bonds 1,939,000$ 7,530,000$ (593,000)$ 8,876,000$ 185,000$ Unamortized premium 5,674 296,858 (7,074) 295,458 - Total Bonds Payable 1,944,674 7,826,858 (600,074) 9,171,458 185,000 Compensated Absences Payable*157,916 - (13,780) 144,136 47,600 Governmental Activity Long-term Liabilities 2,102,590$ 7,826,858$ (613,854)$ 9,315,594$ 232,600$ Business-type Activities Bonds Payable G.O. Revenue bonds 14,225,000$ 1,185,000$ (770,000)$ 14,640,000$ 520,000$ Unamortized premium 466,000 17,016 (23,323) 459,693 - Total Bonds Payable 14,691,000 1,202,016 (793,323) 15,099,693 520,000 Compensated Absences Payable*152,752 - (32,272) 120,480 37,793 Business-type Activity Long-term Liabilities 14,843,752$ 1,202,016$ (825,595)$ 15,220,173$ 557,793$ *Change in compensated absences is shown as net. 69 City of Albertville, Minnesota Notes to the Financial Statements December 31, 2025 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, 2025, 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 97,743 Total Nonspendable 148,743 Restricted Debt Service Debt service 1,553,592 Capital Outlay Reserve Public safety 349,995 Main Avenue Project Capital projects 3,409,353 Central Park Project Capital projects 793,569 Other governmental funds Public safety - charitable gambling 132,197 Other governmental funds Park improvements 1,417,408 Other governmental funds Tax increment financing 375,080 Total Restricted 8,031,194 Committed Other governmental funds Revolving loan 174,671 Other governmental funds Election resources 1,950 Total Committed 176,621 Assigned Capital Outlay Reserve Future capital projects 9,256,086 Unassigned General 3,175,458 Other governmental funds (983,629) Total Unassigned 2,191,829 Total 19,804,473$ Fund 70 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 City of Albertville, Minnesota Notes to the Financial Statements December 31, 2025 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% of the highest average salary for each of the first 10 years of service and 1.7% for each additional year. Under the Level formula, General Plan members receive 1.7% 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 retirement benefit as early as age 55 if they have three or more years of service. Early retirement benefits are reduced by .25% for each month under age 65. Members with 30 or more years of service can retire at any age with a reduction of .25% 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. 71 Note 4: Defined Benefit Pension Plans - Statewide (Continued) Police and Fire Plan Benefits C. Contributions General Employees Fund Contributions Police and Fire Fund Contributions Notes to the Financial Statements December 31, 2025 City of Albertville, Minnesota Benefit increases are provided to benefit recipients each January. The postretirement increase is equal to 50% of the cost-of-living adjustment (COLA) announced by the SSA, with a minimum increase of at least 1% and a maximum of 1.5%. The 2025 annual increase was 1.25%. 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% vested after five years of service and 100% vested after ten years. After five years, vesting increase by 10% each full year of service until members are 100% vested after ten years. Police and Fire Plan members receive 3% 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% each month members are younger than age 55. Benefit increases are provided to benefit recipients each January. The postretirement increase is fixed at 1%. 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 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% of their annual covered salary in fiscal year 2025 and the City was required to contribute 7.50% for General Plan members. The City’s contributions to the General Employees Fund for the year ended December 31, 2025, were $148,265. The City's contributions were equal to the required contributions as set by state statute. Police and Fire Plan members were required to contribute 11.80% of their annual covered salary in fiscal year 2025 and the City was required to contribute 17.70% for Police and Fire Plan members. The City’s contributions to the Police and Fire Fund for the year ended December 31, 2025, were $30,823. The City’s contributions were equal to the required contributions as set by state statute. 72 Note 4: Defined Benefit Pension Plans - Statewide (Continued) Notes to the Financial Statements December 31, 2025 City of Albertville, Minnesota D. Pension Costs General Employees Fund Pension Costs City’s proportionate share of the net pension liability 683,074$ State of Minnesota's proportionate share of the net pension liability associated with the City 16,478 Total 699,552$ Deferred Deferred Outflows Inflows of Resources of Resources Differences between expected and actual economic experience 65,082$ -$ Changes in actuarial assumptions 16,458 157,173 Net difference between projected and actual investment earnings - 271,802 Changes in proportion 67,927 - Employer contributions subsequent to the measurement date 82,305 - Total 231,772$ 428,975$ At December 31, 2025, the City reported deferred outflows of resources and deferred inflows of resources related to pensions from the following sources: For the year ended December 31, 2025, the City recognized pension expense of negative $15,377 for its proportionate share of the General Employees Plan’s pension expense. In addition, the City recognized an additional negative $2,527 as pension expense (and grant revenue) for its proportionate share of the State of Minnesota’s contribution of $16 million to the General Employees Fund. At December 31, 2025, the City reported a liability of $683,074 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 $16,478. The net pension liability was measured as of June 30, 2025, and the total pension liability used to calculate the net pension liability was determined by an actuarial valuation as of that date. The City’s proportion of the net pension liability was based on the City’s contributions received by PERA during the measurement period for employer payroll paid dates from July 1, 2024 through June 30, 2025, relative to the total employer contributions received from all of PERA’s participating employers. The City’s proportionate share was 0.0206% at the end of the measurement period and 0.0204% for the beginning of the period. 73 Note 4: Defined Benefit Pension Plans - Statewide (Continued) Notes to the Financial Statements December 31, 2025 City of Albertville, Minnesota 2026 (37,807)$ 2027 (102,263) 2028 (90,883) 2029 (48,555) Police and Fire Fund Pension Costs City’s proportionate share of the net pension liability 131,600$ State of Minnesota's proportionate share of the net pension liability associated with the City 4,562 Total 136,162$ The State of Minnesota is not included as a non-employer contributing entity in the Police and Fire Pension Plan pension allocation schedules for the $9 million in supplemental state aid because this contribution was not considered to meet the definition of a special funding situation. The City recognized $1,011 for the year ended December 31, 2025 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 $82,305 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, 2026. Other amounts reported as deferred outflows and deferred inflows of resources related to pensions will be recognized in pension expense as follows: The State of Minnesota contributed $18 million to the Police and Fire Fund in the plan fiscal year ended June 30, 2025. The contribution consisted of $9 million in direct state aid that meets the definition of a special funding situation and $9 million in supplemental state aid that does not meet the definition of a special funding situation. The $9 million direct state aid was paid on October 1, 2024. The direct state aid payment will increase by $17.7 million which was paid on October 1, 2025. Thereafter, by October 1 of each year, the state will pay $26.7 million to the Police and Fire Fund until the fund is 110% funded for a minimum of three consecutive years (on an actuarial value of assets basis). The $9 million in supplemental state aid will continue until the fund and the State Patrol Plan (administered by the Minnesota State Retirement System) are 100% funded for three consecutive years (on an actuarial value of assets basis). The State of Minnesota’s proportionate share of the net pension liability associated with the City totaled $4,562. For the year ended December 31, 2025, the City recognized pension expense of $30,416 for its proportionate share of the Police and Fire Plan’s pension expense. The City recognized $2,207 as grant revenue and pension expense for its proportionate share of the State of Minnesota’s contribution of $9 million to the Police and Fire special funding situation. At December 31, 2025, the City reported a liability of $131,600 for its proportionate share of the Police and Fire Fund’s net pension liability. The net pension liability was measured as of June 30, 2025, and the total pension liability used to calculate the net pension liability was determined by an actuarial valuation as of that date. The City's proportionate share of the net pension liability was based on the City’s contributions received by PERA during the measurement period for employer payroll paid dates from July 1, 2024 through June 30, 2025, relative to the total employer contributions received from all of PERA’s participating employers. The City’s proportionate share was 0.0112% at the end of the measurement period and 0.0116% for the beginning of the period. 74 Note 4: Defined Benefit Pension Plans - Statewide (Continued) Notes to the Financial Statements December 31, 2025 City of Albertville, Minnesota Deferred Deferred Outflows Inflows of Resources of Resources Differences between expected and actual economic experience 60,804$ -$ Changes in actuarial assumptions 99,795 164,890 Net difference between projected and actual earnings on investments - 58,735 Changes in proportion 13,336 5,763 Employer contributions subsequent to the measurement date 16,691 - Total 190,626$ 229,388$ 2026 34,356$ 2027 (26,557) 2028 (62,617) 2029 (2,928) 2030 2,293 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 % 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 At December 31, 2025, the City reported deferred outflows of resources and deferred inflows of resources related to pensions from the following sources: The $16,691 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, 2026. Other amounts reported as deferred outflows and inflows of resources related to pensions will be recognized in pension expense as follows: 75 Note 4: Defined Benefit Pension Plans - Statewide (Continued) Notes to the Financial Statements December 31, 2025 City of Albertville, Minnesota F. Actuarial Assumptions The following changes in actuarial assumptions and plan provisions occurred in 2025: General Employees Fund Changes in Actuarial Assumptions: Changes in Plan Provisions: - The post-retirement benefit increase formula changed to 100% of the Social Security annual increase, between 1% and 1.75%, beginning January 1, 2026. If the funded ratio (on a market value of assets basis) is less than 85% for the last two consecutive annual valuations or is less than 80% in the most recent actuarial valuation, the maximum is reduced to 1.5%. Previously, the benefit increase was 50% of the Social Security annual increase, between 1% and 1.5%. - The 1% additional employer contribution is eliminated when the plan reaches 98% funded status (on an actuarial value of assets basis); this contribution was previously scheduled to stop when the plan reached 100% funded status. - The combined service annuity loading factors increased from 15% to 19% for vested, terminated members and from 3% to 44% for non-vested, terminated members. - The assumed post-retirement benefit increase changed from 1.25% to 1.5%. The total pension liability for each of the cost-sharing defined benefit plans was determined by an actuarial valuation as of June 30, 2025, 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%. The 7% 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% is within that range. 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 & Fire Plan was reviewed in 2024. The assumption changes were adopted by the board and became effective with the July 1, 2025 actuarial valuation. - Inflation is assumed to be 2.25% for the General Employees Plan, and Police & Fire Plan. - Benefit increases after retirement are assumed to be 1.50% for the General Employees Plan and 1% for the Police & Fire Plan Salary growth assumptions in the General Employees Plan range in annual increments from 11.5% after one year of service to 3% after 27 years of service. In the Police & Fire Plan, salary growth assumptions range in annual increments from 10.75% after one year of service to 3% after 23 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 & Fire Plan are based on the Pub-2010 Public Safety Employee Mortality tables. The tables are adjusted slightly to fit PERA’s experience. 76 Note 4: Defined Benefit Pension Plans - Statewide (Continued) Notes to the Financial Statements December 31, 2025 City of Albertville, Minnesota Police and Fire Fund Changes in Actuarial Assumptions: Changes in Plan Provisions: G. Discount Rate - The period of time needed for benefit recipients to receive their first benefit increase was reduced by one year (from 36 months to 24 months for a full increase). - The January 1, 2026 benefit increase changed from 1% to 3%; subsequent January 1 increases will be 1%. - The threshold to end the $9 million annual state aid contribution changed from the earlier of July 1, 2048 or 90% funded for both PERA Police & Fire and MSRS State Patrol for three consecutive years to 100% funded for both PERA Police & Fire and MSRS State Patrol for three consecutive years (on an actuarial value of assets basis). - The threshold to end the additional $9 million annual state aid contribution changed from the earlier of July 1, 2024 or 100% funded for a minimum of three consecutive years to 110% funded for a minimum of three consecutive years (on an actuarial value of assets basis). - An additional $17.7 million in direct state aid will be paid annually each October 1 beginning October 1, 2025 through June 30, 2048. - Joint and survivor actuarial equivalent factors were updated to reflect changes in assumptions. The discount rate used to measure the total pension liability in 2025 was 7.00%. 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. 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. - Assumed rates of salary increases were reduced slightly. - Assumed rates of retirement were adjusted, resulting in an overall increase in unreduced (full) retirements and an overall increase in reduced (early) retirements. - Assumed rates of withdrawal were modified; the new rates will increase predicted terminations, especially in the first few years of employment. - Assumed rates of disabled retirement were significantly increased, especially for ages over age 30. - Continued used of Pub-2010 Public Safety Mortality Table with rates adjusted to better fit observed experience. - Percent married assumption for female retirees lowered from 70% to 65%. - Minor changes were made to form of payment assumptions for retirees. - Minor changes were made to assumptions made with respect to missing participant data. - The combined service annuity load changed from 33% to 13% for vested, terminated members and from 2% to 38% for non-vested, terminated members. 77 Note 4: Defined Benefit Pension Plans - Statewide (Continued) Notes to the Financial Statements December 31, 2025 City of Albertville, Minnesota H. Pension Liability Sensitivity 1 Percent 1 Percent Decrease (6.00%)Current (7.00%)Increase (8.00%) General Employees Fund 1,659,079$ 683,074$ (108,686)$ Police and Fire Fund 344,821 131,600 (43,487) I. Pension Plan Fiduciary Net Position Detailed information about each pension plan’s fiduciary net position is available in a separately issued PERA financial report that includes financial statements and required supplementary information. That report may be obtained on the Internet at www.mnpera.org. 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: 78 City of Albertville, Minnesota Notes to the Financial Statements December 31, 2025 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 2025 was $248. Note 6: Defined Benefit Pension Plans - Fire Relief Association A.Plan Description The Albertville Fire Department (the Department) participates in the Statewide Volunteer Firefighter Retirement Plan (Volunteer Firefighter Plan accounted for in the Volunteer Firefighter Fund), an agent multiple-employer lumpsum [or monthly] defined benefit pension plan administered by the Public Employees Retirement Association of Minnesota (PERA). The Volunteer Firefighter Plan covers volunteer firefighters of municipal fire departments or independent nonprofit firefighting corporations that have elected to join the plan. As of December 31, 2024, the plan covered 27 active firefighters and 2 deferred members. B.Benefits Provided The Volunteer Firefighter Plan provides retirement, death, and supplemental benefits to covered firefighters and survivors. Benefits are paid based on the number of years of service multiplied by a benefit level approved by the City. Members are eligible for a lump-sum retirement benefit at 50 years of age with either five or ten years of service, depending on the vesting schedule selected. Plan provisions include a pro-rated vesting schedule that increases from one of the following: (1) 5 years at 40 percent through 20 years at 100 percent, (2) 5 years at 40 percent through 10 years at 100 percent, (3) 10 years at 40 percent through 20 years at 100 percent. 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 $162,670 in fire state aid to the plan on behalf of the Albertville Fire Department for the year ended December 31, 2025, which was recorded as a revenue within the City’s financial statements. Required employer contributions are calculated annually based on statutory provisions. The City made no voluntary contributions to the plan in 2025. 79 City of Albertville, Minnesota Notes to the Financial Statements December 31, 2025 Note 6: Defined Benefit Pension Plans - Fire Relief Association (Continued) D.Pension Costs At December 31, 2025, the City reported a net pension liability (asset) of ($327,287) for the Volunteer Firefighter Fund. The net pension asset was measured as of December 31, 2024. The total pension asset used to calculate the net pension asset in accordance with GASB 68 was determined by PERA applying an actuarial formula to specific census data certified by the Department. The following table presents the changes in net pension liability (asset) during the year. Total Plan Net Pension Fiduciary Pension Liability Net Position Liability (Asset) (a)(b)(a-b) Beginning Balance January 1, 2025 913,545$ 1,070,084$ (156,539)$ Changes for the Year Service cost 54,120 - 54,120 Interest cost 74,821 - 74,821 Projected investment earnings - 66,550 (66,550) Employer Contributions - 39,324 (39,324) Nonemployer Contributions - 162,670 (162,670) Asset Gain or Loss - 39,425 (39,425) Benefit payouts (109,000) (109,000) - Administrative costs - (1,740) 1,740 Other - (6,540) 6,540 Total Net Changes 19,941 190,689 (170,748) Ending Balance December 31, 2025 933,486$ 1,260,773$ (327,287)$ For the year ended December 31, 2025, the City recognized negative pension expense of $62,035. At December 31, 2025, the City reported deferred inflows of resources and deferred outflows of resources, its contributions subsequent to the measurement date, related to pension from the following sources: Deferred Deferred Outflows Inflows of Resources of Resources Net Difference Between Projected and Actual Earnings on Plan Investments -$ 31,540$ Contributions to Plan Subsequent to the Measurement Date 188,214 - Total 188,214$ 31,540$ 80 City of Albertville, Minnesota Notes to the Financial Statements December 31, 2025 Note 6: Defined Benefit Pension Plans - Fire Relief Association (Continued) Deferred outflows of resources totaling $188,214 related to pensions resulting from the City’s contributions to the plan subsequent to the measurement date will be recognized as a reduction of the net pension asset in the year ended December 31, 2026. Other amounts reported as deferred outflows of resources related to the plan will be recognized in pension expense as follows: 2025 (7,885)$ 2026 (7,885) 2027 (7,885) 2028 (7,885) E.Actuarial Assumptions The total pension liability (asset) at December 31, 2025, was determined using the entry age normal actuarial cost method and the following actuarial assumptions: •Retirement eligibility at the later of age 50 or when fully vested •Investment rate of return of 6.0 percent There were no changes in actuarial assumptions in the 2024 plan year. F.Discount Rate The discount rate used to measure the total pension liability was 6.0 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 (asset). 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 (5.0%)Current (6.0%)Increase (7.0%) Defined Benefit Plan (285,206)$ (327,287)$ (367,708)$ H.Investment Policy The Minnesota State Board of Investment (SBI) is established by Article XI of the Minnesota Constitution to invest all state funds. Its membership as specified in the Constitution is comprised of the governor (who is designated as chair of the Board), state auditor, secretary of state and state attorney general. All investments undertaken by the SBI are governed by the prudent person rule and other standards codified in Minnesota statutes, chapter 11a and chapter 353g. 81 City of Albertville, Minnesota Notes to the Financial Statements December 31, 2025 Note 6: Defined Benefit Pension Plans - Fire Relief Association (Continued) Within the requirements defined by state law, the SBI, with assistance of the SBI staff and the Investment Advisory Council, establishes investment policy for all funds under its control. These investments policies are tailored to the particular needs of each fund and specify investment objectives, risk tolerance, asset allocation, investment management structure and specific performance standards. Studies guide the on-going management of the funds and are updated periodically. To match the long-term nature of the pension obligations, the SBI maintains a strategic asset allocation for the Statewide Volunteer Firefighter Retirement Plan (VOLP) that includes allocations to domestic equity, international equity, bonds and cash equivalents. The long-term target asset allocation and long-term expected real rate of return is the following: Asset Class Domestic Stocks 33.5 %5.10 % International Stocks 16.5 5.30 Fixed Income 25.0 0.75 Private Markets 25.0 5.90 Total 100.00 % Long-term Target Expected Real Allocation Rate of Return The six percent long-term expected rate of return on pension plan investments was determined using a building-block method. Best estimates for expected future real rates of return (expected returns, net of inflation) were developed for each asset class using both long-term historical returns and long-term capital market expectations from a number of investment management and consulting organizations. The asset class estimates and the target allocations were then combined to produce a geometric, long-term expected real rate of return for the portfolio. Inflation expectations were applied to derive the nominal rate of return for the portfolio. The SBI made no significant changes to their investment policy during calendar year 2024 for the Volunteer Firefighter Fund. I. Pension Plan Fiduciary Net Position Detailed information about the Volunteer Firefighter Fund’s fiduciary net position as of December 31, 2024, is available in a separately issued PERA financial report that includes financial statements and required supplementary information. That report may be obtained at www.mnpera.org. 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 2024, the most recent available, are summarized below. 82 City of Albertville, Minnesota Notes to the Financial Statements December 31, 2025 Note 7: Joint Ventures (Continued) 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, 2024 Assets and Deferred Outflows of Resources 37,952,430$ Liabilities 2,077,462$ Net Position 35,874,968 Total Liabilities and Net Position 37,952,430$ Joint Powers Water Board Summary Statement of Activities For the Year Ended December 31, 2024 Operating Revenues 2,918,049$ Operating Expenses 2,535,279 Operating Income 382,770 Net Nonoperating Revenues 2,352,349 Change in Net Position 2,735,119 Net Position, January 1 33,139,849 Net Position, December 31 35,874,968$ 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 award and contributions and donations from the City of Albertville, the City of St. Michael and the Independent School District No. 885. In 2019, a new ice sheet was opened by Independent School District No. 885 leading to an amended Joint Powers Agreement with the City of St. Michael and the Independent School District No. 885. The City has an ongoing one-sixth equity financial interest of $289,239 as of December 31, 2025. Separate financial statements can be obtained by contacting Tina Lannes, Finance Director at Albertville City Hall. 83 City of Albertville, Minnesota Notes to the Financial Statements December 31, 2025 Note 7: Joint Ventures (Continued) St. Michael - Albertville Ice Arena Statement of Net Position December 31, 2025 Assets 1,989,827$ Liabilities 8,844$ Net Position 1,980,983 Total Liabilities and Net Position 1,989,827$ St. Michael - Albertville Ice Arena Summary Statement of Activities December 31, 2025 Program Revenues 980,406$ Expenses (910,434) Interest Revenue 42,294 Change in Net Position 112,266 Net Position, January 1 1,868,717 Net Position, December 31 1,980,983$ 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 $1,000,000. Liabilities, if any, include an amount for claims that have been incurred but not reported (IBNRs). The City’s management is not aware of any incurred but not reported claims. B.Legal Debt Margin In accordance with Minnesota statutes, the City may not incur or be subject to net debt in excess of three percent of the market value of taxable property within the City. Net debt is payable solely from ad valorem taxes and, therefore, excludes debt financed partially or entirely by special assessments, enterprise fund revenues or tax increments. The City’s applicable debt does not exceed the limit. 84 City of Albertville, Minnesota Notes to the Financial Statements December 31, 2025 Note 8: Other Information (Continued) C.Conduit Debt Obligations Conduit debt obligations are certain limited-obligation revenue bonds or similar debt instruments issued for the express purpose of providing capital financing for a specific third party. The City has issued revenue bonds to provide financial assistance to private-sector entities for projects deemed to be in the public interest. Although these bonds bear the name of the City, the City, the State, nor any political subdivision thereof is obligated in any manner for repayment of the bonds. Accordingly, the bonds are not reported as liabilities in the accompanying financial statements. Authorized Balance at and Issued Year End Multifamily Housing Revenue Refunding Bonds, Series 2007 3,540,000$ 2,485,000$ Multifamily Housing Revenue Bonds, Series 2010 A 4,750,000 3,545,000 Total Conduit Debt 8,290,000$ 6,030,000$ 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’s net cost is split based on the pro rata share of population and market value. 85 THIS PAGE IS LEFT BLANK INTENTIONALLY 86 REQUIRED SUPPLEMENTARY INFORMATION CITY OF ALBERTVILLE ALBERTVILLE, MINNESOTA FOR THE YEAR ENDED DECEMBER 31, 2025 87 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) 6/30/2025 0.0206 %683,074$ 16,478$ 699,552$ 1,866,822$ 36.6 %90.8 % 6/30/2024 0.0204 754,926 19,521 774,447 1,728,282 43.7 89.1 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 79.1 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 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) 12/31/2025 148,265$ 148,265$ -$ 1,976,866$ 7.50 % 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 Proportion of Percentage of as a PercentageCovered City's Share of the Net Pension Plan FiduciaryLiability as a Net Position City of Albertville, Minnesota Required Supplementary Information For the Year Ended December 31, 2025 the Net Pension Payroll of the Total Liability (a/c)Pension Liability City's Proportionate 88 Notes to the Required Supplementary Information - General Employee Retirement Fund Changes in Actuarial Assumptions 2025 - The combined service annuity loading factors increased from 15% to 19% for vested terminated members and from 3% to 44% for non- vested, terminated members. The assumed post-retirement benefit increase changed from 1.25% to 1.5%. 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. City of Albertville, Minnesota Required Supplementary Information (Continued) For the Year Ended December 31, 2025 89 City of Albertville, Minnesota Required Supplementary Information (Continued) For the Year Ended December 31, 2025 Notes to the Required Supplementary Information - General Employee Retirement Fund (Continued) Changes in Plan Provisions 2025 - The post-retirement benefit increase formula changed to 100% of the Social Security annual increase, between 1% and 1.75% , beginning January 1, 2026. If the funded ratio (on a market value of assets basis) is less than 85% for the last two consecutive annual valuations or is less than 80% in the most recent actuarial valuation, the maximum is reduced to 1.5%. Previously, the benefit increase was 50% of the Social Security annual increase, between 1% and 1.5%.The 1% additional employer contribution is eliminated when the plan reaches 98% funded status (on an actuarial value of assets basis); this contribution was previously scheduled to stop when the plan reached 100% funded status. 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 $6,000,000 in calendar years 2019 to 2031. 2016 - There were no changes in plan provisions since the previous valuation. 90 City of Albertville, Minnesota Required Supplementary Information (Continued) For the Year Ended December 31, 2025 Schedule of Employer’s Share of PERA Net Pension Liability - Police and Fire Fund State's Proportionate City's Share of Proportionate the Net Pension Share of Liability City's Fiscal the Net Pension Associated with Covered Year Liability the City Total Payroll Ending (a)(b)(a+b)(c) 6/30/2025 0.0112 %131,600$ 4,562$ 136,162$ 170,464$ 77.2 %91.8 % 6/30/2024 0.0116 153,052 5,834 158,886 161,095 95.0 90.2 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 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) 12/31/2025 30,823$ 30,823$ -$ 174,144$ 17.70 % 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 Proportionate City's of the Total Share of the Net Pension Liability as a Plan Fiduciary City's Percentage of Net Position Liability (a/c)Pension Liability Proportion of Covered as a Percentage the Net Pension Payroll 91 City of Albertville, Minnesota Required Supplementary Information (Continued) For the Year Ended December 31, 2025 Notes to the Required Supplementary Information - Police and Fire Fund Changes in Actuarial Assumptions 2025 - Assumed rates of salary increases were reduced slightly. Assumed rates of retirement were adjusted, resulting in an overall increase in unreduced (full) retirements and an overall increase in reduced (early) retirements. Assumed rates of withdrawal were modified; the new rates will increase predicted terminations, especially in the first few years of employment. Assumed rates of disabled retirement were significantly increased, especially for ages over age 30. Continued used of Pub-2010 Public Safety Mortality Table with rates adjusted to better fit observed experience. Percent married assumption for female retirees lowered from 70% to 65%. Minor changes were made to form of payment assumptions for retirees. Minor changes were made to assumptions made with respect to missing participant data. The combined service annuity load changed from 33% to 13% for vested, terminated members and from 2% to 38% for non-vested, terminated members. 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. 92 City of Albertville, Minnesota Required Supplementary Information (Continued) For the Year Ended December 31, 2025 Notes to the Required Supplementary Information - Police and Fire Fund (Continued) Changes in Plan Provisions 2025 - The period of time needed for benefit recipients to receive their first benefit increase was reduced by one year (from 36 months to 24 months for a full increase). The January 1, 2026 benefit increase changed from 1% to 3%; subsequent January 1 increases will be 1%. The threshold to end the $9 million annual state aid contribution changed from the earlier of July 1, 2048 or 90% funded for both PERA Police & Fire and MSRS State Patrol for three consecutive years to 100% funded for both PERA Police & Fire and MSRS State Patrol for three consecutive years (on an actuarial value of assets basis). The threshold to end the additional $9 million annual state aid contribution changed from the earlier of July 1, 20248 or 100% funded for a minimum of three consecutive years to 110% funded for a minimum of three consecutive years (on an actuarial value of assets basis). An additional $17.7 million in direct state aid will be paid annually each October 1 beginning October 1, 2025 through June 30, 2048. Joint and survivor actuarial equivalent factors were updated to reflect changes in assumptions. 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. 93 City of Albertville, Minnesota Required Supplementary Information (Continued) For the Year Ended December 31, 2025 Schedule of Changes in the Fire Relief Association’s Net Pension Liability (Asset) and Related Ratios 2025 2024 2023 2022 2021 2020 2019 2018 2017 2016 Total Pension Liability Service cost 54,120$ 49,874$ 50,134$ 42,301$ 33,673$ 32,852$ 32,747$ 29,490$ 15,570$ 16,177$ Interest on pension liability (asset)74,821 40,601 37,634 33,394 33,067 34,839 31,217 27,065 30,956 32,273 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 (109,000)(150,232)(75,000)(139,338)(46,480)(155,000) - (33,851) (41,296) (127,238) Net Change in Total Pension Liability 19,941 150,107 23,401 44,792 104,465 (87,309) 86,505 62,850 47,403 (78,788) Total Pension Liability - January 1 913,545 763,438 740,037 695,245 590,780 678,089 591,584 528,734 481,331 560,119 Total Pension Liability - December 31 (a)933,486$ 913,545$ 763,438$ 740,037$ 695,245$ 590,780$ 678,089$ 591,584$ 528,734$ 481,331$ Plan Fiduciary Net Position Employer contributions 39,324$ -$ -$ -$ -$ -$ -$ -$ -$ -$ Nonemployer contributions 162,670 134,452 111,566 95,777 88,875 79,430 67,699 65,732 69,454 65,940 Projected investment return 66,550 53,939 56,172 53,250 - 46,140 44,300 37,625 45,246 46,826 Asset Gain or Loss 39,425 44,081 (207,778)10,344 86,458 107,361 (85,101) 48,772 (15,836) (53,155) Benefit payments (109,000) (150,232)(75,000)(139,338)(46,480)(155,000) - (33,851) (41,296) (127,238) Administrative expenses (1,740) (1,528) (1,498) (1,810) (1,498) (2,513) (2,182) (3,204) (2,835) - Other (6,540) - - - 6,966 - - - - - Net Change in Plan Fiduciary Net Position 190,689 80,712 (116,538) 18,223 134,321 75,418 24,716 115,074 54,733 (67,627) Plan Fiduciary Net Position - January 1 1,070,084 989,372 1,105,910 1,087,687 953,366 877,948 853,232 738,158 683,425 751,052 Plan Fiduciary Net Position - December 31 (b)1,260,773$ 1,070,084$ 989,372$ 1,105,910$ 1,087,687$ 953,366$ 877,948$ 853,232$ 738,158$ 683,425$ Fire Relief's Net Pension Liability (Asset) - December 31 (a-b)(327,287)$ (156,539)$ (225,934)$ (365,873)$ (392,442)$ (362,586)$ (199,859)$ (261,648)$ (209,424)$ (202,094)$ Plan Fiduciary Net Position as a Percentage of the Total Pension Liability (b/a)135.06%117.14%129.59%149.44%156.45%161.37%129.47%144.23%139.61%141.99% 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 . 94 City of Albertville, Minnesota Required Supplementary Information (Continued) For the Year Ended December 31, 2025 Schedule of Employer’s Fire Relief Association Contributions Actuarial Actual Contribution Determined Contributions Deficiency Year Contribution Paid (Excess) Ending (a)(b)(a-b) 12/31/25 188,214$ 188,214$ -$ 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 - 95 City of Albertville, Minnesota Budgetary Comparison Schedule General Fund For the Year Ended December 31, 2025 Actual Variance with Original and Final Amounts Final Budget Revenues Taxes 3,073,994$ 3,113,128$ 39,134$ Licenses and permits 263,000 463,552 200,552 Intergovernmental 322,850 542,736 219,886 Charges for services 868,961 1,260,962 392,001 Fines and forfeitures -32,441 32,441 Special assessments -67,044 67,044 Investment earnings - 148,654 148,654 Miscellaneous 25,000 187,117 162,117 Total Revenues 4,553,805 5,815,634 1,261,829 Expenditures Current General government 1,039,704 1,306,386 (266,682) Public safety 2,286,635 2,432,094 (145,459) Public works 604,876 713,381 (108,505) Culture and recreation 617,590 858,873 (241,283) Economic development 5,000 19,928 (14,928) Total Expenditures 4,553,805 5,330,662 (776,857) Net Change in Fund Balances -484,972 484,972 Fund Balances, January 1 2,839,229 2,839,229 - Fund Balances, December 31 2,839,229$ 3,324,201$ 484,972$ Budgeted Amounts 2025 The notes to the financial statements are an integral part of this statement. 96 City of Albertville, Minnesota Required Supplementary Information (Continued) For the Year Ended December 31, 2025 Notes to the Required Supplementary Information - Budgetary Reporting A.Budgetary Comparison Schedule The budgetary comparison schedule presents the comparison of the original and legally amended budget with actual amounts on a departmental level for the General funds. The departmental level budgets are adopted on a basis consistent with generally accepted accounting principles. The fund balance reports revenue in the period in which it becomes measurable and available. B.Excess of Expenditures Over Appropriations For the year ended December 31, 2025, expenditures exceeded appropriations in the following funds: Excess of Expenditures Final Over Fund Budget Actual Appropriations General 4,553,805$ 5,330,662$ 776,857$ These excess expenditures were funded by revenues in excess of budget. C.Summary of Significant Budget Variances The General fund revenues and expenditures varied significantly from final budget amounts as noted below: Revenues •Licenses and permits revenue exceeded final budgeted amounts due to more housing development revenue than anticipated at the time of final budget approval. •Intergovernmental revenue exceeded the final budgeted amounts due to the fire state aid received during the year. •Fines and forfeitures, special assessments and investment earnings are unbudgeted. These line items also contributed to the positive revenue budget variance. Expenditures •General government expenditures were over the final budgeted amounts due to general engineering fees associated with the city’s various projects being greater than anticipated. •Public Safety expenditures were over final budgeted amounts due to the fire state aid pass-through payment during the year. D.Budgetary Compliance There were no budgetary compliance violations for the fiscal year ending December 31, 2025. 97 THIS PAGE IS LEFT BLANK INTENTIONALLY 98 COMBINING AND INDIVIDUAL FUND FINANCIAL STATEMENTS AND SCHEDULES CITY OF ALBERTVILLE ALBERTVILLE, MINNESOTA FOR THE YEAR ENDED DECEMBER 31, 2025 99 THIS PAGE IS LEFT BLANK INTENTIONALLY 100 NONMAJOR GOVERNMENTAL FUNDS CITY OF ALBERTVILLE ALBERTVILLE, MINNESOTA FOR THE YEAR ENDED DECEMBER 31, 2025 101 City of Albertville, Minnesota Nonmajor Governmental Funds Combining Balance Sheet December 31, 2025 Total Special Capital Debt Nonmajor Revenue Projects Service Funds Assets Cash and temporary investments 308,818$ 1,800,788$ 1,550,861$ 3,660,467$ Receivables Special assessments - - 235,789 235,789 Interest - - 2,731 2,731 Notes - - 512,038 512,038 Total Assets 308,818$ 1,800,788$ 2,301,419$ 4,411,025$ Liabilities Advances from other funds -$ 991,929$ -$ 991,929$ Deferred Inflows of Resources Unavailable revenue - special assessments - 235,789 235,789 Unavailable revenue - notes - 512,038 512,038 Total Deferred Inflows of Resources - 747,827 747,827 Fund Balances Restricted 132,197 1,792,488 1,553,592 3,478,277 Committed 176,621 - - 176,621 Unassigned - (983,629) - (983,629) Total Fund Balances 308,818 808,859 1,553,592 2,671,269 Total Liabilities and Fund Balances 308,818$ 1,800,788$ 2,301,419$ 4,411,025$ 102 City of Albertville, Minnesota Nonmajor Governmental Funds Combining Statement of Revenues, Expenditures and Changes in Fund Balances For the Year Ended December 31, 2025 Formerly Major Fund Total Special Capital Debt Nonmajor Revenue Projects Service Funds Revenues Property taxes -$ -$ 314,043$ 314,043$ Tax increments - 592,052 - 592,052 Intergovernmental 1,551 - - 1,551 Charges for service - 354,109 - 354,109 Special assessments - 42,523 42,523 Investment earnings 8,998 68,386 42,018 119,402 Miscellaneous 129,386 - 73,148 202,534 Total Revenues 139,935 1,014,547 471,732 1,626,214 Expenditures Current General government 1,200 - - 1,200 Economic development - 688,750 - 688,750 Capital outlay Culture and recreation 256,679 - - 256,679 Debt service Principal - - 593,000 593,000 Interest - 8,781 28,114 36,895 Total Expenditures 257,879 697,531 621,114 1,576,524 Excess (Deficiency) of Revenues Over (Under) Expenditures (117,944) 317,016 (149,382) 49,690 Other Financing Sources (Uses) Transfers in - 14,018 1,114,189 1,128,207 Bond issuance - -166,353 166,353 Transfers out - -(2,344,124) (2,344,124) Total Other Financing Sources (Uses)14,018 (1,063,582) (1,049,564) Special Item Decrease in land held for resale - - - - Net Change in Fund Balances (117,944) 331,034 (1,212,964) (999,874) Fund Balances, January 1, as previously stated 426,762 477,825 - 904,587 Change within financial reporting entity - - 2,766,556 2,766,556 Fund balance, January 1, as adjusted 426,762 477,825 2,766,556 3,671,143 Fund Balances, December 31 308,818$ 808,859$ 1,553,592$ 2,671,269$ 103 THIS PAGE IS LEFT BLANK INTENTIONALLY 104 NONMAJOR SPECIAL REVENUE FUNDS Special revenue funds are established to account for specific revenue or other sources that are designated for financing particular functions or activities as required by regulations, Minnesota statute, City charter provisions, local ordinances, or specific grant 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 that manage their own absentee voting. Monies are received from the state annually based on the number of voters the city serves for administration of absentee voting. 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. 105 104 207 208 Economic Development Election Charitable Loan Fund Resources Gambling Total Assets Cash and temporary investments 174,671$ 1,950$ 132,197$ 308,818$ Fund Balances Restricted - - 132,197 132,197 Committed 174,671 1,950 - 176,621 Total Fund Balances 174,671 1,950 132,197 308,818 Total Liabilities and Fund Balances 174,671$ 1,950$ 132,197$ 308,818$ City of Albertville, Minnesota Nonmajor Special Revenue Funds Combining Balance Sheet December 31, 2025 106 104 207 208 Economic Development Election Charitable Loan Fund Resources Gambling Total Revenues Intergovernmental -$ 1,551$ -$ 1,551$ Investment earnings 8,998 - - 8,998 Miscellaneous - - 129,386 129,386 Total Revenues 8,998 1,551 129,386 139,935 Expenditures Current General government - 1,200 - 1,200 Capital outlay Culture and recreation - - 256,679 256,679 Total Expenditures - 1,200 256,679 257,879 Net Change in Fund Balances 8,998 351 (127,293) (117,944) Fund Balances, January 1 165,673 1,599 259,490 426,762 Fund Balances, December 31 174,671$ 1,950$ 132,197$ 308,818$ City of Albertville, Minnesota Nonmajor Special Revenue Funds Combining Statement of Revenues, Expenditures and Changes in Fund Balances For the Year Ended December 31, 2025 107 THIS PAGE IS LEFT BLANK INTENTIONALLY 108 NONMAJOR CAPITAL PROJECTS FUNDS Capital projects funds are used to account for the acquisition and construction of major capital facilities other than those financed by enterprise funds. Park – This fund accounts for the accumulation of resources and payments made for the construction of park improvements. Park dedication fees, contributions and donations as well as interest are the main financing sources. 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. TIF #22 Mold Tech - This fund was created to facilitate the continued Mold Tech project within the City. This fund accounts for the financial activity related to that project. TIF #23 Guardian Angels Engel Haus - This fund was created to facilitate the Engel Haus project within the City. This fund accounts for the financial activity related to that project. 109 201 407 412 415 416 TIF #7 TIF #12 TIF #15 TIF #16 Park Senior Schultz &Guardian Mold Fund Housing Schupp Angels Tech Assets Cash and temporary investments 1,417,408$ 66,914$ -$ 115,787$ -$ Liabilities Advances from other funds -$ -$ 420$ -$ -$ Fund Balances Restricted 1,417,408 66,914 - 115,787 - Unassigned - - (420) - - Total Fund Balances 1,417,408 66,914 (420) 115,787 - Total Liabilities and Fund Balances 1,417,408$ 66,914$ -$ 115,787$ -$ City of Albertville, Minnesota Nonmajor Capital Projects Funds Combining Balance Sheet December 31, 2025 110 417 418 419 420 421 422 423 TIF #17 TIF #18 TIF #19 TIF #20 TIF #21 TIF #22 TIF #23 Old Scherer Mold Guardian Angels Castle AVA Fehn Brothers Medart Tech Engel Haus Total 5,327$ 171,414$ 20,965$ 2,973$ -$ -$ -$ 1,800,788$ 175,019$ -$ -$ 543,169$ 10,239$ 248,513$ 14,569$ 991,929$ - 171,414 20,965 - - - - 1,792,488 (169,692) - - (540,196) (10,239) (248,513) (14,569) (983,629) (169,692) 171,414 20,965 (540,196) (10,239) (248,513) (14,569) 808,859 5,327$ 171,414$ 20,965$ 2,973$ -$ -$ -$ 1,800,788$ 111 201 407 412 415 416 TIF #7 TIF #12 TIF #15 TIF #16 Park Senior Schultz &Guardian Mold Fund Housing Schupp Angels Tech Revenues Tax increments -$-$-$105,131$ -$ Charges for services 354,109 - - - - Investment earnings 58,719 3,327 - 3,646 - Total Revenues 412,828 3,327 - 108,777 - Expenditures Current Economic development - 33,099 - 91,842 14,018 Debt service Interest - - - - - Total Expenditures - 33,099 - 91,842 14,018 Excess (Deficiency) of Revenues Over (Under) Expenditures 412,828 (29,772) - 16,935 (14,018) Other Financing Sources Transfers in - - - - 14,018 Net Change in Fund Balances 412,828 (29,772) - 16,935 - Fund Balances, January 1 1,004,580 96,686 (420) 98,852 - Fund Balances, December 31 1,417,408$ 66,914$ (420)$ 115,787$ -$ City of Albertville, Minnesota Nonmajor Capital Projects Funds Combining Statement of Revenues, Expenditures and Changes in Fund Balances For the Year Ended December 31, 2025 112 417 418 419 420 421 422 423 TIF #17 TIF #18 TIF #19 TIF #20 TIF #22 TIF #23 Old Scherer TIF #21 Mold Guardian Angels Castle AVA Fehn Brothers Medart Tech Engel Haus Total 67,935$ 283,328$ 38,378$ 94,831$ 2,449$ -$-$592,052$ - - - - - 354,109 2,453 - - 241 - - - 68,386 70,388 283,328 38,378 95,072 2,449 - - 1,014,547 - 251,179 34,730 - 800 248,513 14,569 688,750 8,781 - - - - - - 8,781 8,781 251,179 34,730 - 800 248,513 14,569 697,531 61,607 32,149 3,648 95,072 1,649 (248,513) (14,569) 317,016 - - - - - - - 14,018 61,607 32,149 3,648 95,072 1,649 (248,513) (14,569) 331,034 (231,299) 139,265 17,317 (635,268) (11,888) - - 477,825 (169,692)$ 171,414$ 20,965$ (540,196)$ (10,239)$ (248,513)$ (14,569)$ 808,859$ 113 Total Nonmajor Storm Water Recycling Funds Assets Current Assets Cash and temporary investments 1,277,808$ 68,112$ 1,345,920$ Receivables Accounts 24,557 13,858 38,415 Delinquent special assessments 18 - 18 Special assessments, current portion 2,831 1,221 4,052 Prepaid items 1,851 - 1,851 Total Current Assets 1,307,065 83,191 1,390,256 Capital Assets Land 146,112 - 146,112 Infrastructure 1,509,297 - 1,509,297 Vehicles 69,177 - 69,177 Less: Accumulated depreciation (570,162) - (570,162) Net Capital Assets 1,154,424 - 1,154,424 Total Noncurrent Assets 1,154,424 - 1,154,424 Total Assets 2,461,489 83,191 2,544,680 Deferred Outflows of Resources Deferred pension resources 19,643 23 19,666 Liabilities Current Liabilities Accounts and contracts payable 5,648 13,037 18,685 Due to other governments 10,000 - 10,000 Accrued salaries payable 2,704 112 2,816 Compensated absences payable, current portion 7,167 - 7,167 Total Current Liabilities 25,519 13,149 38,668 Noncurrent Liabilities Compensated absences payable 15,641 - 15,641 Net pension liability 59,116 1,208 60,324 Total Noncurrent Liabilities 74,757 1,208 75,965 Total Liabilities 100,276 14,357 114,633 Deferred Inflows of Resources Deferred pension resources 35,161 35 35,196 Net Position Investment in capital assets 1,154,424 - 1,154,424 Unrestricted 1,191,271 68,822 1,260,093 Total Net Position 2,345,695$ 68,822$ 2,414,517$ City of Albertville, Minnesota Statement of Net Position Nonmajor Proprietary Funds December 31, 2025 Business-type Activities - Enterprise Funds The notes to the financial statements are an integral part of this statement. 114 Total Nonmajor Storm Water Recycling Funds Operating Revenues Charges for services 308,053$ 176,637$ 484,690$ Operating Expenses Personal services 202,428 10,681 213,109 Supplies 124 62 186 Professional services 62,303 4,738 67,041 Insurance 1,876 - 1,876 Repairs and maintenance 158 - 158 Depreciation 37,139 - 37,139 Other charges 6,471 153,794 160,265 Total Operating Expenses 310,499 169,275 479,774 Operating Income (Loss)(2,446) 7,362 4,916 Nonoperating Revenues (Expenses) Interest income 64,205 3,829 68,034 Intergovernmental - 2,588 2,588 Total Nonoperating Revenues (Expenses)64,205 6,417 70,622 Change in Net Position 61,759 13,779 75,538 Net Position, January 1 2,283,936 55,043 2,338,979 Net Position, December 31 2,345,695$ 68,822$ 2,414,517$ Business-type Activities - Enterprise Funds City of Albertville, Minnesota Statement of Revenues, Expenses and Changes in Net Position Nonmajor Proprietary Funds For the Year Ended December 31, 2025 The notes to the financial statements are an integral part of this statement. 115 THIS PAGE IS LEFT BLANK INTENTIONALLY 116 Total Nonmajor Storm Water Recycling Funds Cash Flows from Operating Activities Receipts from customers and users 303,659$ 163,042$ 466,701$ Payments to suppliers (57,557) (145,915) (203,472) Payments to employees (228,113) (10,657) (238,770) Net Cash Provided by (Used) Operating Activities 17,989 6,470 24,459 Cash Flows from Noncapital Financing Activities Advance to other funds 36,000 - 36,000 Intergovernmental receipts - 2,588 2,588 Net Cash Provided by Noncapital Financing Activities 36,000 2,588 38,588 Cash Flows from Investing Activities Interest received on investments 64,205 3,829 68,034 Net Increase (Decrease) in Cash and Cash Equivalents 118,194 12,887 131,081 Cash and Cash Equivalents, January 1 1,159,614 55,225 1,214,839 Cash and Cash Equivalents, December 31 1,277,808$ 68,112$ 1,345,920$ Reconciliation of Operating Income (Loss) to Net Cash Provided by Operating Activities Operating income (loss)(2,446)$ 7,362$ 4,916$ Adjustments to reconcile operating income (loss) to net cash provided by operating activities Depreciation 37,139 - 37,139 (Increase) decrease in assets/deferred outflows of resources Accounts receivable (1,581) (12,390) (13,971) Prepaids 454 - 454 Due from other governments - 2,588 2,588 Special assessments receivable (2,813) (1,205) (4,018) Deferred pension resources (2,751) - (2,751) Increase (decrease) in liabilities/deferred inflows of resources Accounts payable 2,921 12,679 15,600 Due to other governments 10,000 - 10,000 Accrued salaries payable 860 24 884 Unearned revenue - (2,588) (2,588) Compensated absences payable (15,868) - (15,868) Net pension liability (3,913) - (3,913) Deferred pension resources (4,013) - (4,013) Net Cash Provided (Used) by Operating Activities 17,989$ 6,470$ 24,459$ City of Albertville, Minnesota Statement of Cash Flows Nonmajor Proprietary Funds For the Year Ended December 31, 2025 Business-type Activities - Enterprise Funds The notes to the financial statements are an integral part of this statement. 117 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, 2025 Actual Variance with Original and Final Amounts Final Budget Revenues Taxes General property taxes 2,721,294$ 2,712,400$ (8,894)$ Franchise fees 352,700 400,728 48,028 Total 3,073,994 3,113,128 39,134 Licenses and permits Business 60,500 81,977 21,477 Non-business 202,500 381,575 179,075 Total licenses and permits 263,000 463,552 200,552 Intergovernmental State Local government aid 261,315 261,317 2 Property tax credits - 173 173 Other 61,535 281,246 219,711 Total intergovernmental 322,850 542,736 219,886 Charges for services General government 137,463 223,127 85,664 Public safety 714,498 714,498 - Culture and recreation 17,000 323,337 306,337 Total charges for services 868,961 1,260,962 392,001 Fines and forfeitures - 32,441 32,441 Special assessments - 67,044 67,044 Investment earnings - 148,654 148,654 Miscellaneous Other 25,000 14,622 (10,378) Refunds and reimbursements - 172,495 172,495 Total miscellaneous 25,000 187,117 162,117 Total Revenues 4,553,805 5,815,634 1,261,829 Budgeted Amounts 118 Actual Variance with Final Amounts Final Budget Expenditures Current General government Legislative Personal services 27,128$ 27,376$ (248)$ Supplies 2,500 475 2,025 Other services and charges 28,500 29,996 (1,496) Total legislative 58,128 57,847 281 Administration Personal services 184,349 183,950 399 Supplies 5,000 964 4,036 Other services and charges 19,600 19,753 (153) Total administration 208,949 204,667 4,282 City clerk Personal services 100,990 106,879 (5,889) Supplies 12,100 9,613 2,487 Other services and charges 54,800 51,149 3,651 Total city clerk 167,890 167,641 249 Elections and voter registration Other services and charges 27,000 2,549 24,451 Total elections and voter registration 27,000 2,549 24,451 Treasurer Personal services 114,781 112,474 2,307 Supplies 8,600 3,384 5,216 Other services and charges 25,500 27,559 (2,059) Total treasurer 148,881 143,417 5,464 Assessing Other services and charges 50,000 46,281 3,719 Legal Other services and charges 30,000 60,969 (30,969) Budgeted Amounts 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, 2025 119 Actual Variance with Final Amounts Final Budget Budgeted Amounts 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, 2025 Expenditures (Continued) Current (continued) General government (continued) Engineering Other services and charges 35,000$ 210,082$ (175,082)$ Miscellaneous Personal services 27,049 21,449 5,600 Supplies - 64 (64) Other services and charges 286,807 391,420 (104,613) Total miscellaneous 313,856 412,933 (99,077) Total general government 1,039,704 1,306,386 (266,682) Public safety Police protection Other services and charges 1,237,746 1,204,500 33,246 Fire protection Personal services 533,616 723,113 (189,497) Supplies 31,700 25,733 5,967 Other services and charges 160,085 162,129 (2,044) Total fire protection 725,401 910,975 (185,574) Protective inspection Personal services 297,888 297,683 205 Supplies 3,500 1,345 2,155 Other services and charges 14,100 10,009 4,091 Total protective inspection 315,488 309,037 6,451 Animal control Other services and charges 8,000 7,582 418 Total public safety 2,286,635 2,432,094 (145,459) 120 Actual Variance with Final Amounts Final Budget Budgeted Amounts 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, 2025 Expenditures (Continued) Current (continued) Public works Streets Personal services 372,386$ 325,502$ 46,884$ Supplies 37,000 51,839 (14,839) Other services and charges 81,490 233,749 (152,259) Total streets 490,876 611,090 (120,214) Street lighting Other services and charges 114,000 102,291 11,709 Total public works 604,876 713,381 (108,505) Culture and recreation Parks Personal services 421,105 352,857 68,248 Supplies 36,750 34,538 2,212 Other services and charges 159,735 169,571 (9,836) Total parks 617,590 556,966 60,624 Arena Personal services -301,907 (301,907) Total culture and recreation 617,590 858,873 (241,283) Economic development Other services and charges 5,000 19,928 (14,928) Total Expenditures 4,553,805 5,330,662 (776,857) Net Change in Fund Balances -484,972 484,972 Fund Balances, January 1 2,839,229 2,839,229 - Fund Balances, December 31 2,839,229$ 3,324,201$ 484,972$ 121 City of Albertville, Minnesota Debt Service Fund Combining Balance Sheet December 31, 2025 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 -$ -$ -$ -$ Receivables Special assessments - - - - Interest - - - - Notes - - - - Total Assets -$ -$ -$ -$ Deferred Inflows of Resources Unavailable revenue - special assessments -$ -$ -$ -$ Unavailable revenue - notes/intergovernmental - - - - Total Deferred Inflows of Resources - - - - Fund Balances Restricted Debt service - - - - Total Deferred Inflows of Resources and Fund Balances -$ -$ -$ -$ 122 361 362 363 468 Lachman Industrial 2012A 2012A 2025A G.O. Improv.G.O. Improv.Debt CSAH 19 Refunding Refunding Service Interstate 94 Total -$ -$ 1,280,542$ 270,319$ 1,550,861$ - - - 235,789 235,789 - - - 2,731 2,731 - - - 512,038 512,038 -$ -$ 1,280,542$ 1,020,877$ 2,301,419$ -$ -$ -$ 235,789$ 235,789$ - - - 512,038 512,038 - - - 747,827 747,827 - - 1,280,542 273,050 1,553,592 -$ -$ 1,280,542$ 1,020,877$ 2,301,419$ 123 City of Albertville, Minnesota Debt Service Fund Combining Schedule of Revenues, Expenditures and Changes in Fund Balances For the Year Ended December 31, 2025 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 -$ -$ 261,043$ -$ Special assessments - - - - Investment earnings 2,093 1,521 6,940 1,086 Miscellaneous - - - - Total Revenues 2,093 1,521 267,983 1,086 Expenditures Debt service Principal - 155,000 255,000 - Interest and other - 2,596 5,993 - Total Expenditures - 157,596 260,993 - Excess (Deficiency) of Revenues Over (Under) Expenditures 2,093 (156,075) 6,990 1,086 Other Financing Sources (Uses) Transfers in - - - - Bond issuance - - - - Transfers out (853,822) (31,350) (37,157) (73,785) Total Other Financing Sources (Uses)(853,822) (31,350) (37,157) (73,785) Net Change in Fund Balances (851,729) (187,425) (30,167) (72,699) Fund Balances, January 1 851,729 187,425 30,167 72,699 Fund Balances, December 31 -$ -$ -$ -$ 124 361 362 363 468 Lachman Industrial 2012A 2012A 2025A G.O. Improv.G.O. Improv.G.O.CSAH 19 Refunding Refunding Improvement Interstate 94 Total -$ -$ -$ 53,000$ 314,043$ - - - 42,523 42,523 2,901 15,114 - 12,363 42,018 - - - 73,148 73,148 2,901 15,114 - 181,034 471,732 - - - 183,000 593,000 - - - 19,525 28,114 - - - 202,525 621,114 2,901 15,114 - (21,491) (149,382) - - 1,114,189 - 1,114,189 - - 166,353 - 166,353 (197,025) (1,150,985) - - (2,344,124) (197,025) (1,150,985) 1,280,542 - (1,063,582) (194,124) (1,135,871) 1,280,542 (21,491) (1,212,964) 194,124 1,135,871 - 294,541 2,766,556 -$ -$ 1,280,542$ 273,050$ 1,553,592$ 125 City of Albertville, Minnesota Combining Statement of Fiduciary Net Position Fiduciary Funds December 31, 2025 Albertville Total Friendly Albertville STMA Custodial City Days Lions Ice Arena Funds Assets Cash and temporary investments 85,672$ 193,118$ 811,818$ 1,090,608$ Accounts receivable - - 107,224 107,224 Inventory - - 3,078 3,078 Prepaid items - - 13,383 13,383 Total Assets 85,672 193,118 935,503 1,214,293 Liabilities Accounts payable - - 8,844 8,844 Net Position Restricted for organizations and other governments 85,672$ 193,118$ 926,659$ 1,205,449$ 126 Fiduciary Funds Albertville Total Friendly Albertville STMA Custodial City Days Lions Ice Arena Funds AdditionsContributions Charges for services -$ -$ 830,744$ 830,744$ Donations - 2,250 - 2,250 Concessions - - 91,226 91,226 Total Contributions - 2,250 921,970 924,220 Investment earnings 4,414 1,601 42,294 48,309 Miscellaneous - - 58,436 58,436 Total Additions 4,414 3,851 1,022,700 1,030,965 Deductions Professional services - 41,250 360,688 401,938 Supplies - - 39,643 39,643 Utilities - - 246,653 246,653 Insurance - - 32,899 32,899 Repairs and maintenance - - 114,133 114,133 Capital outlay - - 33,513 33,513 Miscellaneous - - 26,684 26,684 Total Deductions - 41,250 854,213 895,463 Net Increase (Decrease) in Fiduciary Net Position 4,414 (37,399) 168,487 135,502 Net Position, January 1 81,258 230,517 758,172 1,069,947 Net Position, December 31 85,672$ 193,118$ 926,659$ 1,205,449$ City of Albertville, Minnesota Combining Statement of Changes in Fiduciary Net Position For the Year Ended December 31, 2025 127 THIS PAGE IS LEFT BLANK INTENTIONALLY 128 STATISTICAL SECTION (UNAUDITED) CITY OF ALBERTVILLE ALBERTVILLE, MINNESOTA FOR THE YEAR ENDED DECEMBER 31, 2025 129 THIS PAGE IS LEFT BLANK INTENTIONALLY 130 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 outstanding 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. 131 2016 2017 2018 2019 Governmental Activities Net investment in capital assets 15,925,140$ 16,653,225$ 16,996,701$ 17,512,792$ Restricted 3,240,957 3,543,926 3,482,527 5,398,928 Unrestricted 8,260,766 8,191,522 8,651,739 7,289,708 Total Governmental Activities Net Position 27,426,863$ 28,388,673$ 29,130,967$ 30,201,428$ Business-type Activities Net investment in capital assets 8,632,306$ 8,717,564$ 9,046,737$ 10,922,191$ Unrestricted 8,856,604 9,562,439 9,489,105 9,102,051 Total Business-type Activities Net Position 17,488,910$ 18,280,003$ 18,535,842$ 20,024,242$ Total Primary Government Net investment in capital assets 24,557,446$ 25,370,789$ 26,043,438$ 28,434,983$ Restricted 3,240,957 3,543,926 3,482,527 5,398,928 Unrestricted 17,117,370 17,753,961 18,140,844 16,391,759 Total Primary Government 44,915,773$ 46,668,676$ 47,666,809$ 50,225,670$ City of Albertville, Minnesota Statistical Section (Unaudited) Net Position by Component Last Ten Fiscal Years (Accrual Basis of Accounting) 132 Table 1 2020 2021 2022 2023 2024 2025 18,587,524$ 18,777,874$ 19,783,680$ 20,273,389$ 21,559,851$ 20,977,236$ 5,120,588 5,683,392 5,667,950 5,714,233 5,877,307 4,758,556 7,153,029 8,481,228 8,458,920 9,205,344 9,667,336 15,726,028 30,861,141$ 32,942,494$ 33,910,550$ 35,192,966$ 37,104,494$ 41,461,820$ 10,788,055$ 11,001,276$ 11,189,927$ 11,419,846$ 13,952,765$ 14,509,401$ 10,545,577 11,685,984 12,978,713 15,654,676 15,001,710 15,838,426 21,333,632$ 22,687,260$ 24,168,640$ 27,074,522$ 28,954,475$ 30,347,827$ 29,375,579$ 29,779,150$ 30,973,607$ 31,693,235$ 35,512,616$ 35,486,637$ 5,120,588 5,683,392 5,667,950 5,714,233 5,877,307 4,758,556 17,698,606 20,167,212 21,437,633 24,860,020 24,669,046 31,564,454 52,194,773$ 55,629,754$ 58,079,190$ 62,267,488$ 66,058,969$ 71,809,647$ Fiscal Year 133 2016 2017 2018 2019 Expenses Governmental Activities General government 858,450$ 822,891$ 737,375$ 767,343$ Public safety 1,602,075 1,548,674 1,529,785 1,877,457 Public works 1,631,343 1,385,420 1,757,764 1,195,560 Culture and recreation 617,041 788,338 611,258 1,069,989 Economic development 117,086 182,059 221,319 223,663 Interest on long-term debt 197,099 228,006 167,872 191,958 Total Governmental Activities Expenses 5,023,094 4,955,388 5,025,373 5,325,970 Business-type Activities Sewer utility 846,349 805,318 818,418 1,102,919 Water utility 418,260 369,100 411,151 451,246 Storm water utility 187,029 265,436 272,024 252,627 Recycling 94,580 95,850 106,514 118,359 Total Business-type Activities Expenses 1,546,218 1,535,704 1,608,107 1,925,151 Total Expenses 6,569,312$ 6,491,092$ 6,633,480$ 7,251,121$ Program Revenues Governmental Activities Charges for services General government 437,398$ 630,143$ 608,525$ 544,149$ Public safety 258,553 276,445 296,707 335,444 Public works 1,700 5,300 3,050 1,750 Culture and recreation 195,815 229,772 165,908 87,525 Operating grants and contributions 240,569 265,983 193,526 191,470 Capital grants and contributions 99,914 118,011 150,340 359,247 Total Governmental Activities Program Revenues 1,233,949 1,525,654 1,418,056 1,519,585 Business-type Activities Charges for services Sewer utility 786,153 848,544 868,052 866,602 Water utility 272,503 355,075 362,737 348,310 Storm water utility 222,630 213,666 211,420 209,206 Recycling 87,444 82,867 94,134 105,028 Operating grants and contributions 15,954 18,240 16,794 22,416 Capital grants and contributions 114,742 683,125 201,561 1,515,818 Total Business-Type Activities Program Revenues 1,499,426 2,201,517 1,754,698 3,067,380 Total Program Revenues 2,733,375$ 3,727,171$ 3,172,754$ 4,586,965$ Note: The City implemented GASB Statement No. 68 and GASB Statement No. 71 in 2015. Years prior to 2015 have not been restated. City of Albertville, Minnesota Statistical Section (Unaudited) Changes in Net Position (Continued on the Following Pages) Last Ten Fiscal Years (Accrual Basis of Accounting) 134 Table 2 2020 2021 2022 2023 2024 2025 1,058,803$ 1,154,441$ 1,273,530$ 1,257,890$ 1,123,145$ 886,140$ 1,941,340 1,879,989 1,989,621 2,242,841 2,743,870 2,535,309 3,185,369 1,689,856 1,598,677 2,245,612 2,261,304 2,061,492 882,232 871,722 988,150 1,147,360 1,019,553 1,277,886 237,902 227,972 1,354,800 265,896 467,423 717,656 149,493 130,847 112,596 95,580 81,151 345,999 7,455,139 5,954,827 7,317,374 7,255,179 7,696,446 7,824,482 1,111,727 1,067,137 1,348,974 1,692,252 1,700,097 1,855,391 417,826 414,208 465,093 526,850 501,642 698,131 290,418 225,386 265,392 297,395 334,065 310,499 117,364 118,432 145,939 157,099 164,830 169,275 1,937,335 1,825,163 2,225,398 2,673,596 2,700,634 3,033,296 9,392,474$ 7,779,990$ 9,542,772$ 9,928,775$ 10,397,080$ 10,857,778$ 640,044$ 878,311$ 1,190,569$ 380,077$ 506,556$ 716,193$ 458,866 435,005 471,179 521,278 616,941 715,085 4,350 4,250 2,125 1,450 4,250 115,820 301,435 1,193,567 315,636 355,279 638,737 804,855 852,421 403,935 380,209 1,071,298 793,051 2,516,176 1,324,103 677,714 1,606,812 11,930 78,896 28,356 3,581,219 3,592,782 3,966,530 2,341,312 2,638,431 4,896,485 1,072,549 1,147,984 1,010,675 1,106,098 1,181,900 1,234,470 411,854 452,529 493,578 496,765 539,850 579,156 222,281 281,058 300,772 249,451 280,350 308,053 95,461 116,919 135,717 141,778 147,327 176,637 22,273 17,930 19,637 18,581 102,826 11,271 1,203,165 1,129,841 1,818,198 2,426,134 1,096,687 641,006 3,027,583 3,146,261 3,778,577 4,438,807 3,348,940 2,950,593 6,608,802$ 6,739,043$ 7,745,107$ 6,780,119$ 5,987,371$ 7,847,078$ Fiscal Year 135 2016 2017 2018 2019 Net Revenues (Expenses) Governmental activities (3,789,145)$ (3,429,734)$ (3,607,317)$ (3,806,385)$ Business-type activities (46,792) 665,813 146,591 1,142,229 Total Primary Government Revenues (Expenses)(3,835,937)$ (2,763,921)$ (3,460,726)$ (2,664,156)$ General Revenues and Other Changes in Net Position General Revenues Governmental Activities Taxes Property taxes, levied for general purpose 2,746,144$ 2,839,090$ 3,054,845$ 3,497,033$ Property taxes, levied for debt service 921,796 916,050 831,410 508,855 Tax increments 169,651 230,131 231,247 232,684 Franchise fees - - - - Grants and contributions not restricted to specific programs 102,311 93,140 111,979 113,056 Unrestricted investment earnings (losses)103,541 138,248 120,130 384,339 Gain on sale of capital assets - 49,020 - 140,879 Miscellaneous 280,219 172,681 - - Transfers - (46,816) - - Total Governmental Activities General Revenues 4,323,662 4,391,544 4,349,611 4,876,846 Business-type Activities Property taxes levied for general purposes - - - - Grants and contributions not restricted to specific programs - - - - Unrestricted investment earnings (losses)74,200 78,464 109,248 346,171 Transfers - 46,816 - - Total Business-type Activities General Revenues 74,200 125,280 109,248 346,171 Total Primary Government 4,397,862$ 4,516,824$ 4,458,859$ 5,223,017$ Change in Net Position Governmental activities 534,517$ 961,810$ 742,294$ 1,070,461$ Business-type activities 27,408 791,093 255,839 1,488,400 Total Primary Government 561,925$ 1,752,903$ 998,133$ 2,558,861$ City of Albertville, Minnesota Statistical Section (Unaudited) Changes in Net Position (Continued) Last Ten Fiscal Years (Accrual Basis of Accounting) 136 Table 2 2020 2021 2022 2023 2024 2025 (3,873,920)$ (2,362,045)$ (3,350,844)$ (4,913,867)$ (5,058,015)$ (2,927,997)$ 1,090,248 1,321,098 1,553,179 1,765,211 648,306 (82,703) (2,783,672)$ (1,040,947)$ (1,797,665)$ (3,148,656)$ (4,409,709)$ (3,010,700)$ 3,469,449$ 3,614,097$ 3,852,811$ 4,143,704$ 4,831,192$ 5,109,418$ 506,868 472,425 473,974 364,072 364,607 259,655 240,457 220,464 197,675 462,983 627,846 592,052 - - - 325,250 336,872 400,728 126,418 115,426 115,422 305,373 259,035 271,171 190,441 11,191 (320,982) 564,901 539,135 652,299 - - - 30,000 10,856 - - 9,795 - - - - - - - - - - 4,533,633 4,443,398 4,318,900 6,196,283 6,969,543 7,285,323 - - 222,934 220,624 332,528 441,083 - - 58,468 111,961 129,624 128,927 219,142 32,530 (353,201) 808,086 769,495 906,045 - - - - - - 219,142 32,530 (71,799) 1,140,671 1,231,647 1,476,055 4,752,775$ 4,475,928$ 4,247,101$ 7,336,954$ 8,201,190$ 8,761,378$ 659,713$ 1,070,461$ 968,056$ 1,282,416$ 1,911,528$ 4,357,326$ 1,309,390 1,488,400 1,481,380 2,905,882 1,879,953 1,393,352 1,969,103$ 2,558,861$ 2,449,436$ 4,188,298$ 3,791,481$ 5,750,678$ Fiscal Year 137 2016 2017 2018 2019 General Fund Nonspendable 51,000$ 51,000$ 133,328$ 140,151$ Unassigned 1,887,922 2,258,988 2,252,982 2,477,774 Total General Fund 1,938,922$ 2,309,988$ 2,386,310$ 2,617,925$ All Other Governmental Funds Nonspendable 1,614$ -$ -$ -$ Restricted 3,272,492 3,670,865 3,758,526 3,387,291 Committed - - - 152,836 Assigned 6,412,396 6,076,678 6,390,844 4,853,536 Unassigned (469,839) (514,315) (432,912) (425,086) Total All Other Governmental Funds 9,216,663$ 9,233,228$ 9,716,458$ 7,968,577$ City of Albertville, Minnesota Statistical Section (Unaudited) Fund Balances of Governmental Funds Last Ten Fiscal Years Fiscal Year 138 Table 3 2020 2021 2022 2023 2024 2025 90,389$ 136,098$ 159,875$ 177,926$ 191,320$ 148,743$ 3,200,223 2,178,219 2,433,060 2,554,745 2,647,909 3,175,458 3,290,612$ 2,314,317$ 2,592,935$ 2,732,671$ 2,839,229$ 3,324,201$ -$ -$ -$ 10,000$ -$ -$ 3,388,480 4,090,889 4,074,312 4,396,743 4,732,741 8,031,194 156,143 155,950 151,451 159,322 167,272 176,621 3,965,154 5,634,162 6,062,374 6,187,137 5,986,659 9,256,086 (389,806) (353,483) (1,033,498) (999,190) (878,875) (983,629) 7,119,971$ 9,527,518$ 9,254,639$ 9,754,012$ 10,007,797$ 16,480,272$ Fiscal Year 139 City of Albertville, Minnesota Statistical Section (Unaudited) Changes in Fund Balances of Governmental Funds Last Ten Fiscal Years 2016 2017 2018 2019 Revenues Taxes 3,840,259$ 4,018,573$ 4,109,257$ 4,233,810$ Licenses and permits 174,928 239,833 258,992 215,108 Intergovernmental 282,508 268,493 312,506 438,035 Charges for services 662,313 888,979 845,182 1,004,236 Fines and forfeitures - 200 1,500 500 Special assessments 246,350 196,021 291,412 259,787 Investment earnings (losses)103,541 138,248 120,130 384,339 Miscellaneous 537,803 385,472 175,104 138,771 Total Revenues 5,847,702 6,135,819 6,114,083 6,674,586 Expenditures General government 738,974 735,742 894,542 791,250 Public safety 1,302,463 1,350,500 1,395,937 1,557,191 Public works 431,596 387,744 411,944 437,365 Culture and recreation 445,486 501,693 533,359 748,116 Economic development 76,875 141,632 175,193 178,507 Miscellaneous - 376 - - Capital outlay 883,733 1,470,904 1,010,977 3,380,525 Debt service Principal 963,240 962,822 992,000 939,000 Interest 170,635 198,979 140,579 165,017 Total Expenditures 5,013,002 5,750,392 5,554,531 8,196,971 Excess (Deficiency) of Revenues Over (Under) Expenditures 834,700 385,427 559,552 (1,522,385) Other Financing Sources (Uses) Transfers in 295,133 323,424 50,068 151,390 Bond issuance - - - - Premiums on bonds sold - - - - Sale of capital assets - 49,020 - 6,119 Transfers out (295,133) (370,240) (50,068) (151,390) Total Other Financing Sources (Uses)- 2,204 - 6,119 Net Change in Fund Balances 834,700$ 387,631$ 559,552$ (1,516,266)$ Debt Service as a Percentage of Noncapital Expenditures 25.2%26.4%24.5%20.6% 140 Table 4 2020 2021 2022 2023 2024 2025 4,221,332$ 4,323,838$ 4,517,340$ 5,280,839$ 6,168,490$ 6,363,241$ 300,888 403,265 652,406 267,566 358,946 463,552 2,077,442 302,106 1,383,658 855,346 505,676 544,287 1,076,374 2,131,559 1,347,603 1,001,605 1,059,050 1,615,071 - 500 7,590 14,812 25,417 32,441 352,949 232,077 443,326 151,906 77,539 109,582 190,441 11,191 (320,982) 564,901 539,135 652,299 181,825 262,487 236,605 149,077 480,271 567,026 8,401,251 7,667,023 8,267,546 8,286,052 9,214,524 10,347,499 920,918 1,021,471 1,102,691 1,021,530 1,447,174 1,307,586 1,629,347 1,717,622 1,802,833 2,040,819 2,404,848 2,432,094 427,682 419,418 495,607 597,277 492,356 713,381 763,021 725,853 760,934 802,971 793,503 872,332 210,170 203,972 1,304,800 265,896 456,586 708,678 - - - - - - 3,646,864 1,178,706 1,832,598 2,036,547 2,626,399 4,371,892 856,000 864,000 876,000 813,000 581,000 593,000 123,168 104,729 86,344 68,903 52,315 217,947 8,577,170 6,235,771 8,261,807 7,646,943 8,854,181 11,216,910 (175,919) 1,431,252 5,739 639,109 360,343 (869,411) - 1,803,693 271,670 - 1,516 2,358,142 - - - - - 7,530,000 - - - - - 296,858 - - - - - - - (1,803,693) (271,670) - (1,516) (2,358,142) - - - - - 7,826,858 (175,919)$ 1,431,252$ 5,739$ 639,109$ 360,343$ 6,957,447$ 14.4%18.3%14.8%14.3%9.7%11.6% Fiscal Year 141 Taxable Market Value Personal property 5,442,200$ 6,101,100$ 6,101,100$ 6,389,500$ Real estate 567,786,000 656,054,200 656,054,200 707,392,300 Total Taxable Market Value 573,228,200$ 662,155,300$ 662,155,300$ 713,781,800$ Estimated Actual Value of Taxable Property 620,513,900$ 705,380,300$ 705,380,300$ 758,532,600$ Taxable Market Value as a Percentage of Estimated Actual Value 92.38 %93.87 %93.87 %94.10 % Tax Capacity Personal property 106,630$ 111,611$ 119,863$ 125,822$ Real estate 7,026,956 7,384,373 7,961,892 8,513,031 Subtotal 7,133,586 7,495,984 8,081,755 8,638,853 Less: tax increment (123,377) (169,948) (171,863) (171,188) Net Tax Capacity 7,010,209$ 7,326,036$ 7,909,892$ 8,467,665$ Tax levies General 2,749,549$ 2,863,190$ 3,056,908$ 3,442,876$ Debt service 921,691 916,045 831,410 561,855 Total 3,671,240$ 3,779,235$ 3,888,318$ 4,004,731$ Tax capacity rate General 39.222 %39.082 %38.647 %40.659 Debt service 13.148 12.504 10.511 6.635 Total 52.370 %51.586 %49.158 %47.294 Source: Wright County Auditor/Treasurer Department City of Albertville, Minnesota Statistical Section (Unaudited) Tax Capacity, Market Value and Estimated Actual Value of Taxable Property (Shown by Year of Tax Collectability) 2019201820172016 142 Table 5 7,128,500$ 5,738,000$ 6,110,500$ 6,154,000$ 6,464,600$ 6,581,400$ 745,489,800 832,227,900 1,001,635,873 1,163,031,027 1,182,282,286 1,213,002,405 752,618,300$ 837,965,900$ 1,007,746,373$ 1,169,185,027$ 1,188,746,886$ 1,219,583,805$ 804,315,050$ 853,083,000$ 1,044,060,600$ 1,044,060,600$ 1,192,720,900$ 1,232,748,800$ 93.57 %98.23 %96.52 %111.98 %99.67 %98.93 % 140,544$ 155,457$ 120,132$ 122,330$ 127,542$ 129,878 8,952,664 9,255,718 9,810,351 11,702,153 14,007,478 14,519,569 9,093,208 9,411,175 9,930,483 11,824,483 14,135,020 14,649,447 (179,241) (186,700) (152,298) (421,581) (555,211) (589,603) 8,913,967$ 9,224,475$ 9,778,185$ 11,402,902$ 13,579,809$ 14,059,844$ 3,414,096$ 3,572,049$ 3,782,812$ 4,121,198$ 4,772,914$ 5,065,312$ 781,384 745,104 749,908 637,696 749,157 755,126 4,195,480$ 4,317,153$ 4,532,720$ 4,758,894$ 5,522,071$ 5,820,438$ 38.301 %38.724 %38.686 %36.142 %35.147 %36.027 % 8.766 8.077 7.669 5.592 5.517 5.371 47.066 %46.801 %46.355 %41.734 %40.664 %41.398 % 202520242023202220212020 143 Table 6 Year Taxes Payable City County No. 885 No. 728 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 2025 35.560 42.861 35.655 25.252 Source: Wright County Auditor/Treasurer Department City of Albertville, Minnesota Statistical Section (Unaudited) Property Tax Capacity Rates - Direct and Overlapping Governments (Per $1,000 of Tax Capacity) Overlapping rates are those of local and county governments that apply to property owners within the City. Not all overlapping rates apply to all City property owners (e.g. the rates for special districts apply only to the proportion of the government's property owners whose property is located within the geographic boundaries of the special district). Overlapping Rates School District District School 144 Table 7 Tax Tax Taxpayer Capacity Rank Capacity Rank CPS Partners, LP 1,118,990$ 1 7.96 %1,097,256$ 1 15.65 % Kingston Crossing of Albertville LLP 500,252 2 3.56 - - Advanced Volumetric Alliance 309,982 3 2.20 - - Preserve at Albertville 272,196 4 1.94 - - Albertville Station LLC 256,590 5 1.82 - - M67 LP 166,416 6 1.18 - - Carman's Bay Investments LLC 161,780 7 1.15 - - Border States Industries, Inc.144,140 8 1.03 60,420 7 0.86 Bid Properties LLC 129,748 9 0.92 - - Engel Haus LLC 106,387 10 0.76 - - Fraser Building LP 104,880 9 0.75 77,254 4 1.10 HGP Architectural Glass, Inc - - 61,982 6 0.88 MSP Albertville Retail Building LLC - - 187,648 2 2.68 Albertville Medical Building, LLC - - 79,448 3 1.13 Mollie LLC - - 69,250 5 0.99 Evans Park Inc - - 60,000 8 0.86 Minnegasco Inc - - 51,148 9 0.73 Northern States Power Company - - 47,986 10 0.68 Totals 3,271,361$ 23.27 %1,792,392$ 25.56 % Source: Wright County Auditor/Treasurer Department City of Albertville, Minnesota Statistical Section (Unaudited) Principal Taxpayers Current Year and Ten Years Ago December 31, 2025 Tax Capacity Tax Capacity 2025 2016 Percent Percent of Total of Total 145 Table 8City of Albertville, Minnesota Statistical Section (Unaudited) Property Tax Levies and Collections Last Ten Fiscal Years Percent Collection Collection of Total Fiscal Total of Current in Subsequent Total Collections Year Levy Year's Levy Years Collections to Levy 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 27,552 3,999,113 99.86 2020 4,195,480 4,177,746 99.58 17,734 4,190,260 99.88 2021 4,317,153 4,310,349 99.84 6,804 4,317,153 100.00 2022 4,532,720 4,515,278 99.62 17,442 4,518,797 99.69 2023 4,758,894 4,728,200 99.36 30,689 4,728,200 99.36 2024 5,522,071 5,463,963 99.48 54,670 5,493,350 99.48 2025 5,820,438 5,796,548 99.59 - 5,796,548 99.59 Source: Wright County Auditor/Treasurer Department (1) Includes state paid property tax credits. Collected Percentage of Levy 146 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 Percentage of Per Year Bonds Revenue Bonds Bonds Government Personal Income Capita 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 2025 9,171,458 15,099,693 - 24,271,151 4.18 2,832 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. Business-type ActivitiesGovernmental Activities 147 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 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) (0.09) (103) 2023 2,532,092 3,875,489 (1,343,397) (0.13) (163) 2024 1,944,674 3,754,583 (1,809,909) (0.15) (212) 2025 9,171,458 2,156,589 7,014,869 0.59 819 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 148 Table 11 Gross Amount Bonded of Debt Used Net Debt For Net Debt Applicable Calculation to District Direct Debt City of Albertville 9,171,458$ 100.00 %9,171,458$ School District #885 101,070,000 22.84 23,084,388 School District #728 280,715,000 9.30 26,106,495 Wright County 111,845,000 4.82 5,390,929 Total Overlapping Debt 493,630,000 11.06 54,581,812 Total Direct and Overlapping Debt 502,801,458$ 12.68 %63,753,270$ 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 City of Albertville, Minnesota Statistical Section (Unaudited) Computation of Direct and Overlapping Debt December 31, 2025 149 2016 2017 2018 2019 Debt Limit (1)17,196,846$ 19,864,659$ 19,864,659$ 21,413,454$ Total Net Debt Applicable to Limit - - - - Total 17,196,846$ 19,864,659$ 19,864,659$ 21,413,454$ 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 150 Table 12 2020 2021 2022 2023 2024 2025 22,578,549$ 25,138,977$ 30,232,391$ 35,075,551$ 35,662,407$ 36,587,514 - - - - - - 22,578,549$ 25,138,977$ 30,232,391$ 35,075,551$ 35,662,407$ 36,587,514$ -$ -$ -$ -$ -$ -$ Legal Debt Margin Calculation for Fiscal Year 2020 Taxable Market Value 1,219,583,805$ Debt Limit (3% of Market Value)36,587,514$ Debt Applicable to Limit General Obligation Bonds (2)- Less: Amount Available in Debt Service Funds - Total Net Debt Applicable to Limit - Legal Debt Margin 36,587,514$ Fiscal Year 151 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 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 2025 2,660,320 1,396,288 1,264,032 770,000 522,477 0.98 General Obligation Revenue Bonds Debt Service 152 Table 14 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) 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 3.00 544,081,800 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 2025 8,569 2,912 2.94 580,009,903 67,687 37.4 6,676 4.1 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 capita 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. City of Albertville, Minnesota Demographic and Economic Statistics Last Ten Fiscal Years 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) 153 THIS PAGE IS LEFT BLANK INTENTIONALLY 154 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 2025 2016 Percentage Percentage of Total City of Total City 155 2016 2017 2018 2019 General Government 6.3 6.3 6.7 6.7 Public Safety Fire Full Time Fire Chief 1 1 1 1.0 Civilians (1)31.0 29.0 32.0 32.0 Public Works Engineering 0.3 0.3 0.3 0.3 Maintenance 2.0 2.0 2.0 2.0 Culture and Recreation Parks 2.0 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 45.6 43.6 47.0 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 156 Table 16 2020 2021 2022 2023 2024 2025 6.7 6.7 6.7 7.7 7.7 7.7 1.0 1.0 1.0 1.0 1.0 1.0 30.0 30.0 28.0 28.0 27.0 27.0 0.3 0.3 0.3 0.3 0.3 0.3 2.5 2.5 2.5 2.5 2.5 2.5 2.5 2.5 2.5 2.5 2.5 2.5 1.5 1.5 1.5 1.5 1.5 2.0 1.5 1.5 1.5 1.5 1.5 2.0 46.0 46.0 44.0 45.0 44.0 45.0 157 2016 2017 2018 2019 256 276 366 418 10 6 195 40 542 477 468 494 123 115 67 98 387 210 364 610 692 663 829 925 24 20 24 25 3 3 3 2 474,000 502,000 484,000 511,000 Note: Indicators are not available for the general government function. Public Works Water Equipment Repair (Hours) Snowplowing (Hours) Street Sweeping (Hours) New Connections Water Main 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 158 Table 17 2020 2021 2022 2023 2024 2025 414 569 549 555 600 674 20 20 80 60 9 15 696 837 863 642 652 754 100 100 125 128 76 100 412 260 608 678 212 320 900 803 1,100 634 757 757 35 65 54 77 10 9 2 2 3 3 5 7 521,000 521,000 517,000 520,000 553,000 557,000 159 2016 2017 2018 2019 Public Safety Fire stations Stations 1 1 1 1 Public Works Highways and streets Streets (miles)38 38 38 39 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 160 Table 18 2020 2021 2022 2023 2024 2025 1 1 1 1 1 1 39 39 39 39 39 39 430 430 432 432 432 432 7 7 7 8 8 8 12 12 12 12 12 12 131 131 131 131 131 131 1 1 1 1 1 1 4 4 4 4 4 4 5 5 5 5 55 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 - - - - 55 55 55 55 55 55 39 39 39 39 39 39 10 10 10 10 10 10 929,000 929,000 929,000 929,000 929,000 929,000 36 36 36 36 36 36 161