2019 Monticello Annual Comprehensive Financial Report
City of Monticello
Wright County, Minnesota
COMPREHENSIVE ANNUAL FINANCIAL REPORT
FOR THE YEAR ENDED DECEMBER 31, 2019
Prepared by
THE “FINANCE TEAM”
Sarah Rathlisberger, Finance Director
Julie Cheney, Finance Assistant
Janet Mertesdorf, Payroll-Finance Clerk
Debbie Davidson, Finance Clerk
Pat Kovich, Utility Billing Specialist
CITY OF MONTICELLO
Comprehensive Annual Financial Report
Table of Contents
December 31, 2019
INTRODUCTORY SECTION Page
Letter of Transmittal 1
GFOA Certificate of Achievement for Excellence in Financial Reporting 4
Organization Chart 5
Directory of Officials 6
FINANCIAL SECTION
Independent Auditor's Report 7
Management's Discussion and Analysis 9
Basic Financial Statements
Government-wide Financial Statements
Statement of Net Position 19
Statement of Activities 21
Fund Financial Statements
Balance Sheet - Governmental Funds 22
Reconciliation of the Governmental Funds Balance Sheet to the Statement of Net Position 23
Statement of Revenues, Expenditures and Changes in Fund Balance - Governmental Funds 24
Reconciliation of the Statement of Revenues, Expenditures and Changes in Fund Balances of Governmental Funds to
the Statement of Activities 25
Statement of Net Position - Proprietary Funds 26
Statement of Revenues, Expenses and Changes in Net Position - Proprietary Funds 29
Statement of Cash Flows - Proprietary Funds 30
Notes to the Financial Statements 33
Required Supplementary Information
Schedule of Employer's Share and Non-Employer Proportionate Share of Net Pension Liability - Public Employees Retirement Association 57
Schedule of Employer's Pension Contibutions - Public Employees Retirement Association 58
Schedule of Changes in the Fire Relief Association's Net Pension Liability (Asset) and Related Ratios 59
Schedule of Employer's Pension Contributions - Monticello Fire Department Relief Association 60
Schedule of Changes in the City's Total OPEB Liability and Related Ratios 61
Schedule of Revenues, Expenditures and Changes in Fund Balance - Budget and Actual - General Fund 62
Schedule of Revenues, Expenditures and Changes in Fund Balance - Budget and Actual - Community Center Fund 64
Schedule of Revenues, Expenditures and Changes in Fund Balance - Budget and Actual - Economic Development Authority Fund 65
Notes to the Required Supplementry Information 66
Combining and Individual Fund Financial Statements and Schedules
Nonmajor Governmental Funds
Combining Balance Sheet 67
Combining Statement of Revenues, Expenditures and Changes in Fund Balance 68
(continued)
I
CITY OF MONTICELLO
Comprehensive Annual Financial Report
Table of Contents
December 31, 2019 (continued)
Internal Service Funds Page
Combining Statement of Net Position 69
Combining Statement of Revenues, Expenses and Changes in Net Position 70
Combining Statement of Cash Flows 71
Other Supplementry Schedules
Schedule of Revenues (Sources) and Expenditures (Uses) - General Fund 73
Schedule of Revenues, Expenditures and Changes in Fund Balance - Budget and Actual - Small Cities Development Program 77
Schedule of Revenues, Expenditures and Changes in Fund Balance - Budget and Actual - Cemetery Fund 78
Schedule of Revenues, Expenditures and Changes in Fund Balance - Budget and Actual - CDBG-Revitalization Fund 79
Schedule of Assets, Liabilities, Deferred Inflows of Resources and Fund Balances - Economic Development Authority 80
Schedule of Revenues, Expenditures and Other Financing Uses - Economic Development Authority 82
Schedule of Assets, Liabilities, Deferred Inflows of Resources and Fund Balances - Debt Service Activities 84
Schedule of Revenues, Expenditures and Other Financing Sources (Uses) - Debt Service Activities 85
STATISTICAL SECTION
Financial trends
Net Position by Component - Last Ten Fiscal Years 87
Changes in Net Position - Last Ten Fiscal years 88
General Governmental Tax Revenues by Source - Last Ten Fiscal Years 90
Fund Balances of Governmental Funds - Last Ten Fiscal Years 91
Changes in Fund Balances of Governmental Funds - Last Ten Fiscal Years 92
Governmental Funds Tax Revenues by Source - Last Ten Fiscal Years 93
Revenue capacity
Tax Capacity Value and Estimated Market Value of Taxable Property - Last Ten Fiscal Years 94
Property Tax Rates - All Direct and Overlapping Governments - Last Ten Fiscal Years 95
Property Tax Levies and Collections - Last Ten Fiscal Years 96
Principal Property Taxpayers - Current Year and Nine Years Ago 97
New Construction and Bank Deposits - Last Ten Fiscal Years 98
Water Sold by Customer Type - Last Ten Fiscal Years 99
Water and Sewage Utility Rates - Last Ten Fiscal Years 100
Debt capacity
Ratios of Outstanding Debt by Type - Last Ten Fiscal Years 101
Ratios of Net General Obligation Bonded Debt Outstanding - Last Ten Fiscal Years 102
Legal Debt Margin Information - Last Ten Fiscal Years 103
Computation of Direct and Overlapping Debt - As of December 31, 2019 104
Schedule of General Obligation Revenue Bond Coverage - Last Ten Fiscal Years 105
Economic and demographic information
Demographic and Economic Statistics - Last Ten Fiscal Years 106
Principal Employers - Current Year and Nine Years Ago 107
Operating information
City Government Employees by Function/Program - Last Ten Fiscal Years 108
Operating Indicators by Function - Last Ten Fiscal Years 109
Capital Assets Statistics by Function - Last Ten Fiscal Years 111
Schedule of Cash Flows Adjusted for Additional City Funding of Fiber Optics Fund -Last Five Fiscal Years 112
II
Letter of Transmittal CITY OF MONTICELLO
Finance Department
May 18, 2020
To the Honorable Mayor, Members of the City Council, and the Residents of
the City of Monticello:
I am pleased to present the Comprehensive Annual Financial Report (CAFR)
of the City of Monticello, Minnesota (the city) for the fiscal year ended
December 31, 2019. Responsibility for both the accuracy of the data and the
completeness and fairness of the presentation, including all disclosures, rests
with the city. To the best of our knowledge and belief, the enclosed data is
accurate, in all material respects, and is reported in a manner designed to
present fairly the financial position and results of operations of the various
funds of the city. All disclosures necessary to enable the reader to gain an
understanding of the city’s financial activities have been included.
Management assumes full responsibility for the completeness and reliability
of the information contained in this report, based upon a comprehensive
framework of internal control 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.
The city’s financial statements have been audited by Malloy, Montague,
Karnowski, Radosevich & Co., P.A. (MMKR), a firm of licensed certified public
accountants. The goal of the independent audit is to provide reasonable
assurance that the financial statements of the city for the fiscal year ended
December 31, 2019 are free of material misstatements. The independent audit
involved examining, on a test basis, evidence supporting the amounts and
disclosures in the financial statements, assessing the accounting principles
used and significant estimates made by management, and evaluating the
overall financial statement presentation. The independent auditor concluded,
based upon the audit, that there was a reasonable basis for rendering an
unmodified opinion that the city’s financial statements for the fiscal year ended
December 31, 2019, are fairly presented in conformity with accounting
principles generally accepted in the United States of America. The
independent auditor’s report is presented as the first component of the
financial section of this report.
The preparation of this CAFR is a requirement of state law. Also, the CAFR is
required by the bond rating agencies before they will rate the city’s bonds. The
report can be used by the city council and the citizens of the city to gain a
better understanding of the financial condition of the city.
Accounting principles generally accepted in the United States of America
require that management provide a narrative introduction, overview, and
analysis to accompany the basic financial statements in the form of
Management’s Discussion and Analysis (MD&A). This letter of transmittal is
designed to complement the MD&A and should be read in conjunction with it.
The city’s MD&A can be found immediately following the report of the auditors.
PROFILE OF THE CITY
The city is situated in a prime location on Interstate 94 between the cities of
Minneapolis/St. Paul and St. Cloud. The city has experienced remarkable
growth within the last 10 years in the residential, commercial, office, and retail
sectors. The city is a freestanding urban fringe community encompassing
approximately 5,000 acres and a population of 13,782. The city is home to
one of Minnesota’s two nuclear power plants, both owned by Xcel Energy, Inc.
(NYSE: XEL). With a small carbon footprint, the Xcel plant is also the city’s
largest employer and property taxpayer. Additionally, Monticello’s business
friendly environment provides a home for Cargill Kitchen Solutions. The
privately-owned, agri-giant is the city’s largest customer of water and sewage
utility services.
The city was founded by second-generation Americans who migrated west in
the mid-1800s. Early settlers found the gently sloping banks and shallow
levels of the Mississippi River made a logical place for a river crossing.
Incorporated in 1856, the city grew quickly during the early settlement years
and then leveled to a population of about 1,300. It was this original settlement
that became the core city and survives today as downtown Monticello.
The city is categorized as a 501(a) entity by IRS Code and operates under the
“Optional Plan A” form of government as defined in 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. Council members serve four-year terms, with two
1
Letter of Transmittal CITY OF MONTICELLO
members elected every two years. The mayor is elected for a two-year term.
The mayor and members of the city council are elected at large.
The city provides a full range of services: the construction and maintenance
of streets and other infrastructure; snow removal; park and cemetery
maintenance; recreational and cultural activities; water, sewer, storm water,
and residential garbage and recycling systems; community development,
building inspection, planning, police, fire, liquor store, and deputy registrar
operations; a city-run fiber optic system and community center; and general
government operations, including administration, finance/accounting,
information systems, community information, and general government
buildings.
The city council is required to adopt a final budget by late December for the
subsequent year. The budget is prepared by fund, function (e.g. public works),
and department (e.g. streets and alleys). Transfers of appropriations between
funds require the approval of the city council. The legal level of budgetary
control is the department level in the General Fund and fund level in all other
funds. Budget amendments require city council approval.
FINANCIAL PLANNING AND THE LOCAL ECONOMY
The city is recovering from economic woes that affected many communities in
Wright County and throughout the state of Minnesota in the late 2000s. The
nuclear power plant provides the city with a relatively stable tax and
employment base. During the economic downturn, the city lost very few of its
local businesses, although some reduced their workforce and scaled back
operations. New commercial development came to a virtual standstill and
growth remains conservative, but is increasing. The residential growth has
increased greatly from a decade ago when the economic downturn was still
causing slow development, but still has not reached pre-economic downturn
levels.
In the past, the state of Minnesota has reduced local government aid (LGA)
and the market value homestead credit (MVHC) to cities and counties as a
way to balance its own budget. Since the city does not receive LGA, the city’s
finances are relatively insulated from the state’s budget impacts. In 2012, the
state eliminated the MVHC and replaced it with a Market Value Exclusion
program, which the city incorporated into its 2019 budget. The new program
shifted more of the tax burden to nonresidential property taxpayers.
The economy and housing market has also affected city revenues for building
permits. The city issued 495 building permits in 2010 with a total valuation of
$9,033,078. In 2019, the city issued 837 permits with a total valuation of
$45,723,446. New residential infrastructure construction will need to occur to
support the same level of residential building permits in the future.
Fortunately, the city does not rely on the state as a major funding source
(LGA). In addition, the city has budgeted conservatively over the years,
resulting in very modest growth in the property tax levy. To assist external
stakeholders, the city is continuously exploring various ways to better
represent its financial position. Other initiatives include consolidating funds
with similar purposes, distributing unallocated expenses and aggregating
similar costs for distribution as single amounts to each budget unit. Further,
staff continues to refine the chart of accounts with the goal of providing better
information to decision makers.
MAJOR INITIATIVES
The city has three major ongoing initiatives in 2019. The first ongoing initiative
is the revitalization of its historic downtown. The downtown is the oldest part
of the city, and many buildings are in need of maintenance or demolition. In
addition, the amount of traffic on State Highway 25 and County Road 75
makes both vehicle and pedestrian traffic difficult to move from one area of
the downtown to another. Because of these issues, a number of the store
fronts are unoccupied. To address these issues, the city completed an
2
Letter of Transmittal CITY OF MONTICELLO
Embracing Downtown Monticello initiative with the goal to identify needed
improvements and enhancements, which will once again make the downtown
area a vibrant shopping and resident destination. This initiative was
supplemented with a 2017 Downtown Small Area Plan. A number of property
acquisitions took place in 2018 and 2019 to support this initiative. The
challenge moving forward will be the implementation of the plan and creating
development opportunities within the downtown area for new and existing
businesses. The city began the first phase in updating the Comprehensive
Plan in 2019 with downtown revitalization as a priority focus through 2040.
The second ongoing initiative is the joint operation with Wright County of
Bertram Chain of Lakes properties. The city and Wright County completed the
final land purchases in 2016. This 1,258-acre site includes four pristine lakes
and woodlands, which, when developed, will become a regional park. Wright
County and the city obtained matching grants from the state to purchase much
of the acreage in the park. Construction of phase 1 of park improvements
began in 2019, and is expected to be completed in 2020.
Finally, a pending Trunk Highway Transportation study will provide context for
the last major initiative of improving regional transportation corridors. The city
is part of a joint powers agreement, which also includes the cities of Becker
and Big Lake, the counties of Wright and Sherburne, Becker and Big Lake
Townships, and MnDot (Minnesota Department of Transportation) District 3.
INTERNAL CONTROL
The management of the city is responsible for establishing and maintaining a
system of internal controls designed to ensure that the assets of the city are
protected from loss, theft, or misuse and that adequate accounting data is
compiled to allow for the preparation of financial statements in conformity with
accounting principles generally accepted in the United States of America. The
city’s internal controls are designed to provide reasonable, but not absolute
assurance that these objectives are met. The concept of reasonable
assurance recognizes that: 1) the cost of a control should not exceed the
benefits likely to be derived, and 2) the valuation of cost and benefit requires
estimates and judgments by management. The city’s internal controls are
subject to periodic evaluation by management and the finance department
staff of the city.
BUDGETING CONTROLS
In addition, the city maintains budgetary controls. The objective of these
budgetary controls is to assure compliance with legal provisions embodied in
the annual appropriated budget approved by the city council. Activities of the
General Fund are included in the annual appropriated budget. The level of
budgetary control (that is, the level at which expenditures cannot legally
exceed the appropriated amount) is established by department within the
General Fund. The city council also adopts a five-year Capital Improvement
Plan as a financial planning document for major purchases. As demonstrated
by the statements and schedules included in the financial section of this
report, the city continues to meet its responsibility for sound financial
management.
ACKNOWLEDGEMENTS
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 CAFR for the fiscal year ended December
31, 2018. This was the tenth year that the city has achieved this prestigious
award. In order to be awarded a Certificate of Achievement, the city had to
publish an easily readable and efficiently organized CAFR. This report 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. I believe
that our current CAFR continues to meet the Certificate of Achievement
Program’s requirements, and I am submitting it to the GFOA to determine its
eligibility for the award.
The 2019 CAFR meets the highest professional standards and was prepared
in a timely and cost-effective manner. The preparation of this report would not
have been possible without the efficient and dedicated service of the entire
staff of the finance department, other city department heads, and through the
helpful guidance and assistance from our auditing firm, MMKR. I wish to
express my appreciation to all parties who assisted and contributed to the
preparation of this report. Credit also must be given to the mayor and city
council for their unfailing support for maintaining the highest standards of
professionalism in the management of the city’s finances.
Respectfully submitted,
Sarah Rathlisberger
Finance Director
3
Certificate of Achievement CITY OF MONTICELLO
The Government Finance Officers Association of the United States
and Canada (GFOA) awarded a Certificate for Excellence in
Financial Reporting to the City of Monticello, Minnesota for its
Comprehensive Annual Financial Report for the fiscal year ended
December 31, 2018. The Certificate of Achievement is a prestigious
national award recognizing conformance with the highest standards
for preparation of state and local government reports.
In order to be awarded a Certificate of Achievement, a governmental
unit must publish an easily readable and efficiently organized
Comprehensive Annual Financial Report, whose contents conform
to program standards. Such reports must satisfy both generally
accepted accounting principles and applicable legal requirements.
A Certificate of Achievement is valid for a period of one year only.
We believe our current report continues to conform to Certificate of
Achievement program requirements, and we are submitting it to the
GFOA.
Government Finance Officers Association
Certificate of
Achievement
for Excellence
in Financial
Reporting
Presented to
City of Monticello
Minnesota
For its Comprehensive Annual
Financial Report
For the Fiscal Year Ended
December 31, 2018
Executive Director
4
Organization Chart CITY OF MONTICELLO
Residents of
Monticello
City Commissions
Council & Boards
City
Administrator
Human Finance Community City Public Community City Fire Contracted
Resource Director Development Engineer Works Center Clerk Chief Services
Manager Director Director Director
Finance Economic Construction Streets Community Elections Fire City
Department Development Inspectors Department Center Department Attorney
Audit Building Consulting Parks Sheriff
Inspections Engineer Department Department
Deputy Receptionist Water &Animal
Registrar Sewage Control
Department
Liquor Consulting Refuse County
Operations Planner Collection Assessor
FiberNet
Operation
5
Directory of Officials CITY OF MONTICELLO
MAYOR & CITY COUNCIL
Position Name Term Expires
Mayor ..................................................................................... Brian Stumpf 12/31/2020
Council .................................................................................. Jim Davidson 12/31/2020
Council ............................................................................................ Bill Fair 12/31/2020
Council .............................................................................. Charlotte Gabler 12/31/2022
Council .................................................................................... Lloyd Hilgart 12/31/2022
CITY STAFF
City Administrator ....................................................................... Jeff O’Neill
Public Works Director/City Engineer ...................................... Matt Leonard
Finance Director/Finance Manager............................. Sarah Rathlisberger
Community Development Director .................................Angela Schumann
Community Center Director .................................................... Ann Mosack
City Clerk ........................................................................ Jennifer Schreiber
Human Resource Manager ..................................................... Tracy Ergen
Communications Coordinator ............................................ Rachel Leonard
Street Superintendent ............................................................. Tom Moores
Parks Superintendent ............................................................. Tom Pawelk
Water & Sewage Superintendent................................................ Mat Stang
Deputy Registrar Manager ............................................... Carolyn Granger
Liquor Store Manager ...................................................... Randall Johnsen
Economic Development Manager ............................................. Jim Thares
Chief Building Official .................................................. Ron Hackenmueller
Fire Chief ................................................................................ Mike Mossey
PROFESSIONAL SERVICES
Law Enforcement ......................................... Wright County Sheriff’s Office
City Attorney .......................................................... Campbell Knutson, P.A.
City Planning Consultant ...................... Northwest Associated Consultants
Financial Advisor .................................................. Northland Securities, Inc
Fibernet Management Services ......................................................... Arvig
6
Principals
Thomas A. Karnowski, CPA
Paul A. Radosevich, CPA
William J. Lauer, CPA
James H. Eichten, CPA
Aaron J. Nielsen, CPA
Victoria L. Holinka, CPA
Jaclyn M. Huegel, CPA
Kalen T. Karnowski, CPA
INDEPENDENT AUDITOR’S REPORT
To the City Council and Management
City of Monticello, Minnesota
REPORT ON THE FINANCIAL STATEMENTS
We have audited the accompanying financial statements of the
governmental activities, the business-type activities, each major fund, and
the aggregate remaining fund information of the City of Monticello,
Minnesota (the City) as of and for the year ended December 31, 2019, and
the related notes to the financial statements, which collectively comprise
the City’s basic financial statements as listed in the table of contents.
MANAGEMENT’S RESPONSIBILITY FOR THE FINANCIAL STATEMENTS
Management is responsible for the preparation and fair presentation of
these financial statements in accordance with accounting principles
generally accepted in the United States of America; this includes the
design, implementation, and maintenance of internal control relevant to the
preparation and fair presentation of financial statements that are free from
material misstatement, whether due to fraud or error.
AUDITOR’S RESPONSIBILITY
Our responsibility is to express opinions on these financial statements
based on our audit. We conducted our audit in accordance with auditing
standards generally accepted in the United States of America and the
standards applicable to financial audits contained in Government Auditing
Standards, issued by the Comptroller General of the United States. Those
standards require that we plan and perform the audit to obtain reasonable
assurance about whether the financial statements are free from material
misstatement.
An audit involves performing procedures to obtain audit evidence about
the amounts and disclosures in the financial statements. The procedures
selected depend on the auditor’s judgment, including the assessment of the
risks of material misstatement of the financial statements, whether due to
fraud or error. In making those risk assessments, the auditor considers
internal control relevant to the City’s preparation and fair presentation of
the financial statements in order to design audit procedures that are
appropriate in the circumstances, but not for the purpose of expressing an
opinion on the effectiveness of the City’s internal control. Accordingly,
we express no such opinion. An audit also includes evaluating the
appropriateness of accounting policies used and the reasonableness of
significant accounting estimates made by management, as well as
evaluating the overall presentation of the financial statements.
We believe that the audit evidence we have obtained is sufficient and
appropriate to provide a basis for our audit opinions.
OPINIONS
In our opinion, the financial statements referred to above present fairly, in
all material respects, the respective financial position of the governmental
activities, the business-type activities, each major fund, and the aggregate
remaining fund information of the City as of December 31, 2019, and the
respective changes in financial position and, where applicable, cash flows
thereof, for the year then ended, in accordance with accounting principles
generally accepted in the United States of America.
(continued)
7
OTHER MATTERS
Required Supplementary Information
Accounting principles generally accepted in the United States of America
require that the management’s discussion and analysis and the required
supplementary information (RSI), as listed in the table of contents, be
presented to supplement the basic financial statements. Such information,
although not a part of the basic financial statements, is required by the
Governmental Accounting Standards Board, who considers it to be an
essential part of financial reporting for placing the basic financial
statements in an appropriate operational, economic, or historical context.
We have applied certain limited procedures to the RSI 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.
Other Information
Our audit was conducted for the purpose of forming opinions on the
financial statements that collectively comprise the City’s basic financial
statements. The introductory section, combining and individual fund
financial statements and schedules, and statistical section, are presented for
purposes of additional analysis and are not required parts of the basic
financial statements.
The combining and individual fund financial statements and schedules are
the responsibility of management and were derived from and relate directly
to the underlying accounting and other records used to prepare the basic
financial statements. Such information has been subjected to the auditing
procedures applied in the audit of the basic financial statements and certain
additional procedures, including comparing and reconciling
such information directly to the underlying accounting and other records
used to prepare the basic financial statements or to the basic financial
statements themselves, and other additional procedures in accordance with
auditing standards generally accepted in the United States of America. In
our opinion, the combining and individual fund financial statements and
schedules are fairly stated, in all material respects, in relation to the basic
financial statements as a whole.
The introductory and statistical sections have not been subjected to the
auditing procedures applied in the audit of the basic financial statements
and, accordingly, we do not express an opinion or provide any assurance
on them.
OTHER REPORTING REQUIRED BY GOVERNMENT AUDITING
STANDARDS
In accordance with Government Auditing Standards, we have also issued
our report dated May 18, 2020, on our consideration of the City’s internal
control over financial reporting and on our tests of its compliance with
certain provisions of laws, regulations, contracts, 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.
Minneapolis, Minnesota
May 18, 2020
8
Management’s Discussion and Analysis CITY OF MONTICELLO
Management’s Discussion and Analysis
As management of the City of Monticello, Minnesota (the city), we offer readers
of the city’s financial statements this narrative overview and analysis of the
financial activities of the city for the fiscal year ended December 31, 2019. We
encourage readers to consider the information presented here in conjunction
with additional information that we have furnished in our letter of transmittal,
which can be found on pages 1-3 of this report.
Overview of the Basic Financial Statements
The discussion and analysis are 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 supplementary information in addition to the basic financial statements
themselves.
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 private sector businesses.
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 (delinquent taxes and special assessments).
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 provided by the city include general
government, public safety, public works, sanitation, recreation and culture,
economic development, and interest and fiscal charges. Business-type activities
include water, sewage, water quality, liquor, fiber optics, and deputy registrar
enterprises.
The government-wide financial statements include not only the city itself (known
as the primary government), but also the Economic Development Authority
(EDA). The EDA is a legally separate entity which functions, in essence, as a
department of the city, to provide redevelopment and other economic
development assistance through the administration of various programs.
Therefore, the EDA has been included as an integral part of the city’s financial
statements and a blended component unit.
The government-wide financial statements can be found on pages 19-21 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 city’s funds can be divided into two categories:
governmental funds and proprietary 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-
COMPONENTS OF
THE 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
9
Management’s Discussion and Analysis CITY OF MONTICELLO
term inflows and outflows of spendable resources, as well as the 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 of the government’s
near-term financing decisions. Both the governmental funds Balance Sheet and
Statement of Revenue, Expenditures and Changes in Fund Balances provide a
reconciliation to facilitate the comparison between governmental funds and
governmental activities.
The city maintains several individual governmental funds. Information is
presented separately in the governmental funds Balance Sheet and in the
governmental funds Statement of Revenue, Expenditures and Changes in Fund
Balances for the General Fund, Community Center (special revenue) Fund,
EDA (special revenue) Fund, Debt Service Fund, and Capital Projects Fund, all
of which are considered to be major funds. Data from the remaining
governmental funds are combined into a single, aggregated presentation.
Individual fund data for each of these nonmajor governmental funds is provided
in the form of combining statements elsewhere in this report.
The city adopts an annual budget for its General Fund and special revenue
funds. A budgetary comparison schedule has been provided within the required
supplementary information for the General Fund and major special revenue
funds to demonstrate compliance with the adopted budgets.
The governmental fund financial statements can be found on pages 22-25 of
this report.
Proprietary Funds – The city maintains two different types of proprietary funds.
Enterprise funds are used to report the same functions presented as business-
type activities in the government-wide financial statements. The city maintains
six enterprise funds which are used to account for its water, sewage, and water
quality services, municipal liquor store sales, fiber optics network, and deputy
registrar, which provides vehicle and other licensing services. Internal service
funds are an accounting device used to accumulate and allocate costs internally
among the city’s various functions. The city uses internal service funds to
account for benefit accruals, central equipment services, and information
technology (IT) services. Because these internal service fund activities
predominantly benefit governmental rather than business-type functions, they
have been included within governmental activities in the government-wide
financial statements.
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 operations.
The internal service funds are combined into a single, aggregated presentation
in the proprietary fund financial statements. Individual fund data for the internal
service funds is provided in the form of combining statements elsewhere in this
report.
The proprietary fund financial statements can be found on pages 26-31 of this
report.
Notes to Basic Financial Statements – The notes to basic financial
statements provide additional information that is essential to obtaining a full
understanding of the data provided in the government-wide and fund financial
statements.
The notes to the basic financial statements can be found on pages 33-56 of this
report.
Other Information – In addition to the basic financial statements and
accompanying notes, this report presents required supplementary information
on activity related to the defined benefit pension plans and the other post-
employment benefits (OPEB) plan as well as budgetary comparison
information. Combining statements for nonmajor governmental funds, internal
service funds, and other supplementary schedules including activities of the
General Fund, nonmajor special revenue funds, Economic Development
Authority Fund, and Debt Service sub-funds, can also be found in the combining
and individual fund statements and schedules section of this report.
Required supplementary information and combining and individual fund
statements and schedules can be found starting on page 57.
Financial Highlights
The assets and deferred outflows of resources of the city exceeded its liabilities
and deferred inflows of resources at year-end by $133,495,924 (net position).
Of this amount, $41,989,339 (unrestricted net position) may be used to meet
the city’s ongoing obligations to citizens and creditors.
As of the close of the current fiscal year, the city’s governmental funds reported
combined ending fund balances of $35,544,405, an increase of $5,373,853, or
17.8 percent. Nonspendable, restricted, and assigned uses of fund balance
totaled $29,002,294, leaving an unassigned fund balance of $6,542,111, which
is $442,717, or 6.3 percent, lower than the 2018 ending unassigned balance.
10
Management’s Discussion and Analysis CITY OF MONTICELLO
At the end of the current fiscal year, unassigned fund balance for the General
Fund was $6,542,111, or 79.1 percent, of total General Fund expenditures for
2019. The city targets 75 percent of next year’s expenditure budget as the
optimum fund balance level, providing a reserve for cash flow during the first six
months of each subsequent year until property tax receipts are released from
the county treasurer’s office and distributed to the local levels of government.
The state auditor recommends that local governments maintain an unrestricted
fund balance of approximately 35–50 percent of operating revenues or no less
than five months of operating expenditures for the General Fund. The General
Fund’s heavy dependence on property tax revenues validates the 75 percent
target. What is more, this reserve threshold provides temporary financing for
unforeseen emergencies. (Source: Minnesota Office of the State Auditor: Fund
Balance Reporting and Governmental Fund Type Definitions, based on
Governmental Accounting Standards Board (GASB) Statement No. 54, 2010–
1003 Revised July 2012).
In 2019, government-wide capital assets increased by $2,411,333 due to
acquisitions exceeding disposals and depreciation on existing assets.
Governmental activities include completion of construction of the Fallon Avenue
Overpass and the Chelsea Road Utility and Street Improvement project, and
began construction of a new fire station, phase 1 of improvements at the
Bertram Chain of Lakes regional park, and pedestrian improvements. The city
also completed the installation of a columbarium, street lighting upgrades, and
community center HVAC upgrades and installation of a new pool slide. Other
acquisitions include a developer donation of infrastructure in the Carlisle Sixth
addition and developer donated park land, a DMV courier vehicle, water fund
truck, sewer fund mule utility vehicle, and fiber installation in two developments.
Internal service funds acquisitions include fire and streets utility vehicles, a
streets tractor, and a parks track loader.
The city’s total long-term bonded indebtedness increased by $4,737,000, or
16.8 percent, in 2019. Principal payments made on outstanding debt totaled
$3,263,000. The city issued $8,000,000 in general obligation, special
assessment, and tax abatement bonds in 2019 to finance capital project costs
related to the Fallon Avenue overpass and new fire station, Chelsea Road
improvements, and fire ladder truck acquisition. The 2019A general obligation
bonds are accounted for in the Debt Service Fund and will be paid from special
assessments and property taxes.
11
Management’s Discussion and Analysis CITY OF MONTICELLO
GOVERNMENT-WIDE FINANCIAL ANALYSIS
NET POSITION
By the far the largest portion of the city’s net position (62%) reflects investment
in capital assets (e.g. land, buildings, structures, systems, machinery,
equipment, infrastructure, and intangible assets), net of any related debt used
to acquire those assets that is still outstanding. The city uses assets to provide
services to citizens; consequently, these assets are not available for future
spending. Although the city’s investment in capital assets is reported net of
related debt, it should be noted that resources needed to repay this debt must
be provided from other sources since capital assets themselves cannot be used
to liquidate these liabilities.
A small portion of the city’s net position (7%) represents resources that are
subject to external restrictions on how they can be used. The remaining
unrestricted net position of $41,989,339 may be used to meet the ongoing
obligations to citizens and creditors. Of the unrestricted net position,
$14,855,640 (35%) is attributable to business-type activities.
The unrestricted governmental activities net position increased $3,711,151
(16%), and business-type activities unrestricted net position increased
$1,594,135 (12%). The government-wide total unrestricted net position
increased $5,305,286 (14%), reflecting revenues exceeding conservative
budgeted estimates and expenditures below liberal estimates.
The $856,473 (1%) decrease in governmental activities capital assets is
reflective of capital asset purchases and reinvestment, exceeding depreciation
and disposals, but offset by a $5,029,427 contribution of capital assets to the
newly created Water Quality enterprise fund within the business-type activities.
Business-type capital assets increased $3,267,806 (8%) due to depreciation
exceeding investment in improvements offset by the contribution of capital
assets from the governmental activities.
Net investment in capital assets, which is capital assets less related debt,
increased because capital asset acquisitions less the amount of debt borrowed
to acquire assets exceeded capital asset disposals and depreciation.
2019 2018 2019 2018 2019 2018
Current and other assets 47,955,707$ 42,272,476$ 16,554,485$ 15,210,287$ 64,510,192$ 57,482,763$
Capital assets 67,002,287 67,858,760 46,537,527 43,269,721 113,539,814 111,128,481
Total assets 114,957,994 110,131,236 63,092,012 58,480,008 178,050,006 168,611,244
Deferred outflows of resources 313,775 559,152 79,890 148,305 393,665 707,457
Long-term liabilities 32,036,517 27,179,638 4,664,872 4,991,329 36,701,389 32,170,967
Other liabilities 2,136,609 1,838,470 636,291 896,177 2,772,900 2,734,647
Total liabilities 34,173,126 29,018,108 5,301,163 5,887,506 39,474,289 34,905,614
Deferred inflows of resources 5,266,362 5,082,664 207,096 229,091 5,473,458 5,311,755
Net position
Net investment in capital assets 40,008,410 43,517,983 42,808,003 39,250,211 82,816,413 82,768,194
Restricted 8,690,172 9,649,085 - - 8,690,172 9,649,085
Unrestricted 27,133,699 23,422,548 14,855,640 13,261,505 41,989,339 36,684,053
Total net position 75,832,281$ 76,589,616$ 57,663,643$ 52,511,716$ 133,495,924$ 129,101,332$
Governmental Activities Business-Type Activities Total
12
Management’s Discussion and Analysis CITY OF MONTICELLO
CHANGE IN NET POSITION
2019 2018 2019 2018 2019 2018
Revenues
Program revenues
Charges for services 3,525,783$ 3,008,797$ 12,932,551$ 12,535,514$ 16,458,334$ 15,544,311$
Operating grants and contributions 431,004 428,443 - - 431,004 428,443
Capital grants and contributions 1,024,891 2,044,698 1,646,123 925,195 2,671,014 2,969,893
General revenues
Property taxes 10,375,714 9,972,166 - - 10,375,714 9,972,166
Tax increments 679,925 638,278 - - 679,925 638,278
Franchise taxes 432,934 386,622 - - 432,934 386,622
Unrestricted investment earnings 969,216 364,364 482,120 162,003 1,451,336 526,367
Gain on sale of assets - 15,000 - 379,246 - 394,246
Total revenues 17,439,467 16,858,368 15,060,794 14,001,958 32,500,261 30,860,326
Expenses
General government 1,927,752 1,614,613 - - 1,927,752 1,614,613
Public safety 2,406,748 2,377,661 - - 2,406,748 2,377,661
Public works 5,765,576 5,548,199 - - 5,765,576 5,548,199
Sanitation 610,944 615,586 - - 610,944 615,586
Transit - 18,333 - - - 18,333
Recreation and culture 3,636,958 3,460,887 - - 3,636,958 3,460,887
Economic development 872,984 1,206,067 - - 872,984 1,206,067
Interest and fiscal charges 752,595 617,344 - - 752,595 617,344
Water utility - - 1,216,446 1,235,055 1,216,446 1,235,055
Sewage utility - - 2,889,438 2,932,413 2,889,438 2,932,413
Liquor - - 5,577,481 5,394,968 5,577,481 5,394,968
Fiber optics - - 1,990,052 2,276,015 1,990,052 2,276,015
Deputy registrar - - 458,695 421,662 458,695 421,662
Total expenses 15,973,557 15,458,690 12,132,112 12,260,113 28,105,669 27,718,803
Increase in net position before transfers 1,465,910 1,399,678 2,928,682 1,741,845 4,394,592 3,141,523
Transfers (2,223,245) 1,000,000 2,223,245 (1,000,000) - -
Change in net position (757,335) 2,399,678 5,151,927 741,845 4,394,592 3,141,523
Net position, January 1, as previously reported 76,589,616 74,034,698 52,511,716 51,849,855 129,101,332 125,884,553
Change in accounting standard - 155,240 - (79,984) - 75,256
Net position, January 1, as restated 76,589,616 74,189,938 52,511,716 51,769,871 129,101,332 125,959,809
Net position, December 31 75,832,281$ 76,589,616$ 57,663,643$ 52,511,716$ 133,495,924$ 129,101,332$
Governmental Activities Business-Type Activities Total
13
Management’s Discussion and Analysis CITY OF MONTICELLO
Governmental Activities. The most significant revenue source for
governmental activities is property taxes at 59% of total revenues. Property
taxes support the General Fund, Community Center Fund, Economic
Development Authority Fund, Capital Project Fund, and Debt Service Fund.
Charges for services accounts for 21% of revenues, with about 40% generated
by the Community Center. Capital grants and contributions include special
assessments and revenues from other sources restricted to capital asset
acquisition. Investment earnings include both interest received and the change
in the investment fair values. Tax increments are property taxes collected in tax
increment financing districts and are restricted for development purposes.
Governmental activities revenues increased $581,099 (3%) in the current year.
Investment earnings increased $604,852 (166%), charges for services
increased $516,986 (17%) with increases in garbage rates and building permits,
and property taxes increased by $403,548 (4%). Capital grants and
contributions decreased $1,019,807 (50%) due to a lower amount of special
assessments levied.
Public works (engineering, streets, ice and snow removal, shop and garage,
street lighting, etc.) expenses are the most significant (36%), followed by
recreation and culture (23%), public safety (15%), general government (12%),
economic development (5%), interest and fiscal charges (5%), and sanitation
(4%). Included in these amounts is depreciation expense, which is 26% of the
total expenses for governmental activities.
Governmental activities expenses increased $514,867 (3%) in the current year.
The most significant changes in program expenses were as follows:
General government expenses increased $313,139 (19%) due to increased
wages, professional services for updating the Comprehensive plan and a
Pay study, and a loss on disposal with the sale of the Ellison property that
was donated to the city in 2017.
Public works increased $217,377 (4%) due to wage expense, including the
first full year of the reinstated public works director position.
Recreation and culture increased $176,071 (5%) with the purchase of new
fitness machines and maintenance expenses for a building energy audit at
the community center.
Interest and fiscal charges increased $135,251 (22%) with the first year of
payments on the 2018A bonds.
Economic development decreased $333,083 (28%) due to unusually high
expenses in 2018 for relocation costs and property acquisitions.
14
Management’s Discussion and Analysis CITY OF MONTICELLO
Business-type Activities. Business-type activities increased the city’s net
position by $5,151,927, which is $4,410,082 more than the prior fiscal year
increase in business-type net position.
The change is mostly attributable to a $5,029,427 transfer of capital assets from
governmental activities. Without the capital transfer, business-type activities
would have increased net position by $122,500, which is a $619,345 decrease
from the prior year due to a $2.1 million operating transfer from Liquor
operations to governmental activities for phase 1 of the Bertram Chain of Lakes
regional park improvements.
FINANCIAL ANALYSIS OF THE CITY’S FUNDS
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, spendable fund balances may serve as a useful
measure of a government’s net resources available for expenditure at the end
of the fiscal year.
At December 31, 2019, the city’s governmental funds reported total ending fund
balances of $35,544,405, an increase of $5,373,853 (18%) when compared with
the prior year. Approximately 21% or $7,567,522 of the total ending fund
balances constituted restricted fund balances, which are considered unavailable
for appropriation for general operations. The $207,167 nonspendable fund
balance accounted for 0.6% of total governmental fund balances and is
comprised of prepaid items.
At the end of the fiscal year, the General Fund reported a fund balance of
$6,677,250, decreasing $432,228 (6%) from the prior year. General fund
revenues were $543,203 (6%) more than the prior fiscal year and expenditures
increased by $345,116 (4%). Transfers out increased by $750,040.
General government expenditures increased $120,795 (7%) with most of the
increase related to employee costs and completion of the visioning phase of the
Monti:2040 Comprehensive Plan update. Public safety expenditures increased
$95,312 (4%) with the first full year of the new fire marshal/emergency
management coordinator position. Public works administration and ice & snow
were largely responsible for the $142,943 (7%) increase in public works
expenditures with the first full year of the reinstated public works
director/engineer position and an unusually snowy spring in 2019. Recreation
and culture expenditures increased by $9,041 (1%). Transit expenditures
decreased $18,333 (100%) as the operations were transferred to Wright County
at the end of 2018.
15
Management’s Discussion and Analysis CITY OF MONTICELLO
The fund balance in the Community Center Fund decreased $367,313 (61%) to
$239,482 due to HVAC upgrades budgeted in 2018 completed in 2019. Charges
for services decreased $88,450 (6%) to $1,361,002 in 2019, and miscellaneous
revenues decreased $25,582 (34%) in 2019 due to higher donations received
in 2018 for building upgrades. Expenditures increased $299,266 (16%) to
$2,193,849 due to building improvements and the replacement of the water
slide in the pool in 2019.
The fund balance in Economic Development Authority (EDA) Fund increased
$72,799 (1%) to $7,313,264. The assigned fund balance, which is available for
general EDA activity, equaled $4,764,790 at year-end. Land held for resale
increased by $34,795 (1%) with the acquisition of one property and a decrease
in value of two other properties. The EDA received $348,515 in property tax
revenue and $679,925 in tax increments in 2019. At year-end, the restricted
$2,505,894 portion of the fund balance is attributable to tax increment districts
and loan programs.
The fund balance in the Debt Service Fund decreased $569,983 (24%) to
$1,821,561. This planned fund balance decrease reflects prior year
accumulation of resources to make scheduled bond payments and the early
redemption of the 2010A Improvement bonds on February 1, 2019. Special
assessment revenue increased $46,226 (14%) to $373,337 due to a number of
prepaid assessments. In governmental funds, assessments are recorded as a
revenue when collectible, which occurs when it is in the current period or soon
thereafter.
The Capital Projects Fund provides the accounting for acquisition of general
government capital assets. Accordingly, the fund accumulates resources from
various sources and expenditures may or may not occur in the same year of
accumulation. Consequently, the fund balance in the Capital Projects Fund
increased $7,672,901 (102%) to $15,200,401. Proceeds from the 2019A
$8,000,000 general obligation bond issue are accounted for in this fund and
used to finance capital project costs related to the Fallon Avenue overpass and
new fire station, Chelsea Road improvements, and fire ladder truck acquisition.
A $5,000 transfer to the Debt Service Fund was used to initiate a new sub-fund
for the 2019A bonds.
Proprietary funds. The proprietary funds provide the same type of information
found in the business-type activities in the government-wide financial
statements, but in more detail.
Water Fund operating expenses decreased $18,441 (1%) with lower utilities and
repairs costs. Utility employee personal service costs are divided between the
Water Fund and Sewage Fund based on activity. The Water Fund operating
revenues decreased $132,003 (9%) with lower consumption due to a very wet
summer. The fund’s net position decreased $842,150 (6%) to $13,940,622 due
to a $1,533,000 transfer out to the Capital Projects fund for a future new Public
Works facility. Depreciation expense for the fund totaled $523,173.
Sewage Fund expenses decreased $38,143 (1%) and operating revenues
decreased $137,977 (5%). The 2019 capital contributions of $1,219,287
included a $99,100 donation of Carlisle Sixth addition infrastructure from a
developer in addition to sewer access and trunk charges. The fund’s net position
increased $348,264 (2%) to $22,459,035. Depreciation expense for the fund
totaled $1,223,111.
The Water Quality Fund was created in 2019 for storm water system
maintenance/upgrades and street sweeping operations. Net position at year-
end is $6,518,374 due to 6 months of service charges, an operating transfer in
of $1,426,818 from a nonmajor governmental fund, and capital contributions
from governmental activities of $5,029,427.
The Liquor Fund’s net position decreased $1,253,570 (71%) to $522,808 due
to a $2.1 million transfer out to the Park & Pathway Dedication (nonmajor) fund
in 2019. Liquor and related product sales increased $287,860 (5%) to
$6,374,153, exceeding the $6 million threshold for the second time. Gross profit
increased $117,166 (8%) to $1,656,712. Operating expenses decreased
$11,953 (1%) to $866,171, and depreciation expense for the fund totaled
$33,701.
The Fiber Optics Fund’s net position decreased $178,831 (1%) to $12,464,870.
The fund’s 2019 charges for services increased $59,277 (3%) to $1,794,153.
Excluding depreciation, the operating loss of $141,524 increased to an
operating revenue of $190,086 in 2019. Depreciation expense for the fund
totaled $385,176. The city contracted for FiberNet operations management in
July 2016.
The Deputy Registrar Fund (DMV) net position increased $537,226 (49%) to
$1,639,898. Charges for services increased $95,815 (14%) to $788,032 and
operating expenses increased $36,816 (9%) to $466,499. Depreciation for the
fund totaled $7,889. The DMV processed 139,965 transactions, a 17% increase
over the prior year. The DMV transitioned to the new Minnesota’s Licensing and
Vehicle Registration System (MNLARS) in 2017. MNLARS has proven to be a
system with a need for improvement, the State will be transitioning to a new
system, MNDrive, in late 2020. Due to the difficult transition, the city received a
$165,387 grant in 2019 to help offset the costs of moving to MNLARS.
Other factors of the changes in income from operations have previously been
discussed in the government-wide financial analysis of business-type activities.
16
Management’s Discussion and Analysis CITY OF MONTICELLO
GENERAL FUND BUDGETARY HIGHLIGHTS
During the year, there were no amendments to the budget. General Fund
revenues and other financing sources totaled $9,287,336 and exceeded budget
by 701,336 (8%). Licenses and permits, other revenues, investment earnings,
and charges for services were $198,225 (49%), $192,766 (157%), $148,216
(185%) and $98,282 (16%) higher than budget, respectively. Licenses and
permits include building permits, other revenues include donations, investment
earnings include adjustment to fair value of investments held, and charges for
services include fire fees, garbage charges to residential properties, and
administrative staff time billed to planning and zoning applicants. These
revenues can be difficult to predict, and are, therefore, budgeted conservatively.
General Fund expenditures totaled $8,269,524 and were $316,476 (4%) less
than budget. Other financing uses consisted of unbudgeted transfers out of
$1,450,040 in order to follow the General Fund balance policy of 75% of next
year’s budgeted expenditures. Low fuel costs and hiring an engineer internally
resulted in public works expenditures $170,591 (7%) less than budget.
No functions exceeded budget. Within the functions, eleven of thirty-four
reporting units exceeded budget.
The General Fund year end fund balances since 2011 are as follows:
CAPITAL ASSETS AND DEBT ADMINISTRATION
CAPITAL ASSETS
Capital assets. The city’s investment in capital assets for its governmental and
business-type activities at December 31, 2019 totaled $113,539,814 (net of
accumulated depreciation). This investment in capital assets includes land,
construction in progress, buildings and systems, including infrastructure, and
machinery and equipment, including intangible assets.
Major governmental activities capital assets changes: completion of construction
of the Fallon Avenue Overpass and the Chelsea Road Utility and Street
Improvement project, began construction of a new fire station, phase 1 of
improvements at the Bertram Chain of Lakes regional park, pedestrian
improvements, and equipment additions in the Central Equipment Fund of
$295,303. Business-type capital assets: a DMV courier vehicle, water fund truck,
sewer fund mule, fiber installation in two developments, and the transfer of
stormwater assets from governmental activities. The total increase from the prior
fiscal year is 2.2%; governmental activities decreased 1.3% and business-type
activities increased 7.6%.
Additional information on the city’s capital assets can be found in the notes to the
financial statements on pages 42-43.
Year Amount
2011 4,410,637$
2012 3,478,507
2013 3,914,563
2014 4,331,058
2015 4,986,796
2016 6,276,720
2017 7,029,093
2018 7,109,478
2019 6,677,250
2019 2018 2019 2018 2019 2018
Land 11,020,584$ 10,908,050$ 730,695$ 730,695$ 11,751,279$ 11,638,745$
Construction in progress 7,339,275 9,663,111 - - 7,339,275 9,663,111
Buildings and systems 93,970,808 102,600,286 104,383,594 85,255,259 198,354,402 187,855,545
Machinery and equipment 6,478,680 6,122,457 3,498,584 3,488,117 9,977,264 9,610,574
Less: Accumulated depreciation (51,807,060) (61,435,144) (62,075,346) (46,204,350) (113,882,406) (107,639,494)
Net total 67,002,287$ 67,858,760$ 46,537,527$ 43,269,721$ 113,539,814$ 111,128,481$
Governmental Activities Business-Type Activities Total
17
Management’s Discussion and Analysis CITY OF MONTICELLO
OUTSTANDING INDEBTEDNESS
Long-term Debt. The city’s outstanding long-term debt, including general
obligation bonds, certificates of indebtedness, special assessment bonds, tax
abatement bonds, and a public facilities authority loan, totaled $32,970,000 at
December 31, 2019. In 2019, the city issued $8,000,000 in general obligation
bonds (governmental activities) to finance capital project costs related to the
Fallon Avenue overpass and new fire station, Chelsea Road improvements, and
fire ladder truck acquisition. Business-type long-term debt decreased with
regularly scheduled payments. All other changes are the result of the early
redemption of the 2010A G.O. Bonds and regularly scheduled payments.
Additional information on the city’s long-term liabilities can be found in the notes
to the financial statements on pages 43-46 of this report.
ECONOMIC FACTORS AND NEXT YEAR’S BUDGETS AND RATES
Subsequent to year end, the Novel Coronavirus (COVID-19) pandemic has
caused significant volatility in economic conditions. The overall effect of the
pandemic is unknown, but the city expects manageable loss of revenue
and will look at cutting unnecessary spending as needed to ensure
continued sound financial standing.
The unemployment rate for the Wright County, Minnesota area for
December 31, 2019 was 3.5%, which is in line with the state average (3.5%)
and slightly above the national average (3.4%). However, this is likely to
rise due to the COVID-19 pandemic.
The state and local economic outlook are unknown at this time, also due to
the COVID-19 pandemic. However, new commercial and residential
development continued to grow at a sustainable pace in 2019, and have
not indicated a significant downward trend yet in 2020.
The occupancy rate of the city’s business district has remained constant
over the last few years and new commercial construction had recently
grown. Effects of the COVID-19 pandemic are not yet clear.
The prospects for continued residential and large commercial growth in
2020 look promising. Small commercial growth is not expected in the near
future in light of the COVID-19 pandemic.
Inflationary trends in the region have compared favorably to national
indices the last few years.
REQUESTS FOR INFORMATION
This financial report is designed to provide a general overview of the city’s
finances for all those interested in governmental finance. Questions concerning
any information in the report or requests for additional information should be
addressed to City of Monticello, Finance Department, 505 Walnut Street, Suite
1, Monticello, MN 55362.
2019 2018 2019 2018 2019 2018
General obligation bonds 11,600,000$ 5,375,000$ 1,910,000$ 2,095,000$ 13,510,000$ 7,470,000$
Certificate of indebtedness 70,000 135,000 - - 70,000 135,000
Special assessment bonds 9,200,000 10,925,000 - - 9,200,000 10,925,000
Tax abatement bonds 8,390,000 7,800,000 - - 8,390,000 7,800,000
Public facilities authority loan - - 1,800,000 1,903,000 1,800,000 1,903,000
Total 29,260,000$ 24,235,000$ 3,710,000$ 3,998,000$ 32,970,000$ 28,233,000$
Activities Activities Total
Governmental Business-Type
18
CITY OF MONTICELLO
Statement of Net Position
December 31, 2019
Governmental Business-type
Activities Activities Total
ASSETS
Cash and investments 35,833,131$ 15,002,226$ 50,835,357$
Receivables
Unremitted taxes 41,040 - 41,040
Deliquent taxes 34,372 - 34,372
Unremitted special assessments 2,996 103 3,099
Deliquent special assessments 5,306 14,274 19,580
Deferred special assessments 4,391,980 265,533 4,657,513
Accrued interest 140,191 - 140,191
Accounts 231,075 530,293 761,368
Due from other governmental units 2,185,356 64,545 2,249,901
Internal balances (118,036) 118,036 -
Inventory - 447,358 447,358
Prepaid items 207,167 112,117 319,284
Notes receivable 400,837 - 400,837
Land held for resale 4,371,552 - 4,371,552
Net pension asset - FRA 228,740 - 228,740
Capital assets
Nondepreciable 18,359,859 730,695 19,090,554
Depreciable, net 48,642,428 45,806,832 94,449,260
TOTAL ASSETS 114,957,994 63,092,012 178,050,006
DEFERRED OUTFLOWS OF RESOURCES
Deferred other post-employment benefits resources 1,449 591 2,040
Deferred pension resources 312,326 79,299 391,625
TOTAL DEFERRED OUTFLOWS OF RESOURCES 313,775 79,890 393,665
LIABILITIES
Accounts and contracts payable 1,344,128 409,103 1,753,231
Accrued interest payable 80,911 11,541 92,452
Other accrued liabilities 164,229 9,823 174,052
Due to other governmental units 50,826 205,824 256,650
Unearned revenue 57,467 - 57,467
Escrow deposits 439,048 - 439,048
Net pension liability - PERA 2,311,582 812,176 3,123,758
Long-term liabilities
Due within one year 3,711,588 345,858 4,057,446
Due in more than one year 26,013,347 3,506,838 29,520,185
TOTAL LIABILITIES 34,173,126 5,301,163 39,474,289
DEFERRED INFLOWS OF RESOURCES
Deferred other post-employment benefits resources 115,345 47,113 162,458
Deferred pension resources 725,936 159,983 885,919
Deferred MSA state aid and grants 4,425,081 - 4,425,081
TOTAL DEFERRED INFLOWS OF RESOURCES 5,266,362 207,096 5,473,458
NET POSITION
Net investment in capital assets 40,008,410 42,808,003 82,816,413
Restricted for
Debt service 5,251,080 - 5,251,080
Economic development 2,310,932 - 2,310,932
Tax increment 1,128,160 - 1,128,160
Unrestricted 27,133,699 14,855,640 41,989,339
TOTAL NET POSITION 75,832,281$ 57,663,643$ 133,495,924$
The notes to the financial statements are an integral part of this statement.
19
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20
CITY OF MONTICELLO
Statement of Activities
For the Year Ended December 31, 2019
Operating Capital
Charges for Grants and Grants and Governmental Business-type
Expenses Services Contributions Contributions Activities Activities Total
Governmental activities
General government 1,927,752$ 232,336$ 16,741$ 23,500$ (1,655,175)$ -$ (1,655,175)$
Public safety 2,406,748 921,916 212,879 - (1,271,953) - (1,271,953)
Public works 5,765,576 373,581 181,639 1,001,391 (4,208,965) - (4,208,965)
Sanitation 610,944 381,328 19,745 - (209,871) - (209,871)
Recreation and culture 3,636,958 1,602,473 - - (2,034,485) - (2,034,485)
Economic development 872,984 14,149 - - (858,835) - (858,835)
Interest and fiscal charges 752,595 - - - (752,595) - (752,595)
Total governmental activities 15,973,557 3,525,783 431,004 1,024,891 (10,991,879) - (10,991,879)
Business-type activities
Water 1,216,446 1,300,191 - 426,836 - 510,581 510,581
Sewage 2,889,438 2,443,856 - 1,219,287 - 773,705 773,705
Water Quality - 61,757 - - - 61,757 61,757
Liquor 5,577,481 6,377,457 - - - 799,976 799,976
Fiber Optics 1,990,052 1,795,435 - - - (194,617) (194,617)
Deputy Registrar 458,695 953,855 - - - 495,160 495,160
Total business-type activities 12,132,112 12,932,551 - 1,646,123 - 2,446,562 2,446,562
Total primary government 28,105,669$ 16,458,334$ 431,004$ 2,671,014$ (10,991,879)2,446,562 (8,545,317)
General Revenues
Property taxes 10,375,714 - 10,375,714
Tax increments 679,925 - 679,925
Franchise taxes 432,934 - 432,934
Unrestricted investment earnings 969,216 482,120 1,451,336
Transfers
Operating 2,806,182 (2,806,182) -
Capital (5,029,427) 5,029,427 -
Total general revenues and transfers 10,234,544 2,705,365 12,939,909
Change in Net Position (757,335) 5,151,927 4,394,592
Net Position, January 1 76,589,616 52,511,716 129,101,332
Net Position, December 31 75,832,281$ 57,663,643$ 133,495,924$
Net (Expense) Revenue and Changes in Net PositionProgram Revenues
The notes to the financial statements are an integral part of this statement.
Functions/Programs
21
CITY OF MONTICELLO
Balance Sheet
Governmental Funds
401
101 226 213 Linked 300 Linked
Economic 400 Total Total
Community Development Debt Capital Nonmajor Governmental
General Center Authority Service Projects Funds Funds
ASSETS
Cash and investments 7,189,488$ 238,749$ 4,218,402$ 1,820,070$ 16,898,551$ 4,098,499$ 34,463,759$
Receivables
Unremitted taxes 39,716 - 1,324 - - - 41,040
Delinquent taxes 33,431 - 941 - - - 34,372
Unremitted special assessments - - - 2,863 133 - 2,996
Delinquent special assessments - - - 443 4,863 - 5,306
Deferred special assessments 155 - - 3,509,987 881,838 - 4,391,980
Accrued interest 140,191 - - - - - 140,191
Accounts 69,876 28,352 1,440 - - 131,377 231,045
Due from other governmental units 19,458 - - - 2,165,898 - 2,185,356
Prepaid items 135,139 28,619 42,580 - - 829 207,167
Notes receivable - - 187,023 - - 213,814 400,837
Land held for resale - - 2,875,370 - 1,496,182 - 4,371,552
TOTAL ASSETS 7,627,454$ 295,720$ 7,327,080$ 5,333,363$ 21,447,465$ 4,444,519$ 46,475,601$
LIABILITIES
Accounts and contracts payable 253,318$ 11,639$ 9,204$ 1,372$ 935,282$ 124,572$ 1,335,387$
Other accrued liabilities 148,256 15,973 - - - - 164,229
Due to other governmental units 41,563 9,037 226 - - - 50,826
Unearned revenue 37,878 19,589 - - - - 57,467
Escrow deposits 435,603 - 3,445 - - - 439,048
Total liabilities 916,618 56,238 12,875 1,372 935,282 124,572 2,046,957
DEFERRED INFLOWS OF RESOURCES
Unavailable revenue - property taxes 33,431 - 941 - - - 34,372
Unavailable revenue - special assessments 155 - - 3,510,430 886,701 - 4,397,286
Unavailable revenue - notes receivable - - - - - 27,500 27,500
Unavailable revenue - MSA state aid and grants - - - - 4,425,081 - 4,425,081
Total Deferred Inflows of Resources 33,586 - 941 3,510,430 5,311,782 27,500 8,884,239
FUND BALANCES
Nonspendable 135,139 28,619 42,580 - - 829 207,167
Restricted - - 2,505,894 1,821,561 2,335,310 904,757 7,567,522
Assigned - 210,863 4,764,790 - 12,865,091 3,386,861 21,227,605
Unassigned 6,542,111 - - - - - 6,542,111
Total fund balance 6,677,250 239,482 7,313,264 1,821,561 15,200,401 4,292,447 35,544,405
TOTAL LIABILITIES, DEFERRED INFLOWS
OF RESOURCES, AND FUND BALANCES 7,627,454$ 295,720$ 7,327,080$ 5,333,363$ 21,447,465$ 4,444,519$ 46,475,601$
The notes to the financial statements are an integral part of this statement.
December 31, 2019
22
CITY OF MONTICELLO
Reconciliation of the Governmental Funds Balance Sheet
to the Statement of Net Position
December 31, 2019
Amounts reported for governmental activities in the statement of net position are different because:
Total fund balances - governmental funds 35,544,405$
Long-term assets from pensions reported in governmental activities are not financial resources and, therefore, are not
reported as assets in the funds. 228,740
Capital assets used in governmental activities are not financial resources and, therefore, are not reported in the funds.
Land 11,020,584$
Construction in progress 7,339,275
Buildings and systems 93,970,808
Machinery and equipment 4,483,117
Accumulated depreciation (51,120,673) 65,693,111
Governmental funds do not report long-term amounts related to other post-employment benefits and pensions.
Deferred outflows of resources - OPEB 1,449$
Deferred outflows of resources - pensions 312,326
Deferred inflows of resources - OPEB (115,345)
Deferred inflows of resources - pensions (725,936) (527,506)
Long-term liabilties that pertain to governmental funds, including bonds payable, are not due and payable in the current
period and, therefore, are not reported as fund liabilities. All liabilities, both current and long-term, are reported in
the Statement of Net Position.
Bonds payable (28,895,000)$
Unamortized bond premiums (69,187)
Other post-employment benefits liability (90,631)
Net pension liability - PERA (2,311,582) (31,366,400)
Internal service funds are used by management to charge the costs of central equipment, information technology, and
benefit accrual services to individual funds. The assets and liabilities of the internal service funds are included in
governmental activities in the Statement of Net Position.
Internal service fund net position included in the governmental activities 1,999,267$
Less internal services net position allocated to to business-type activities (118,036) 1,881,231
Some of the city's property taxes, special assessments, and notes receivable will be collected after year-end, but are not
available soon enough to pay for current period expenditures and, therefore, are reported as deferred inflows
of resources in the governmental funds. 4,459,158
Interest on long-term debt is not accrued in governmental funds, but rather is recognized as an expenditure when due.
Accrued interest for general obligation bonds is included in the Statement of Net Position. (80,458)
Net position of governmental activities 75,832,281$
The notes to the financial statements are an integral part of this statement.
23
CITY OF MONTICELLO
Statement of Revenues, Expenditures and Changes in Fund Balance
Governmental Funds
For the Year Ended December 31, 2019
401101226213Linked300 Linked
Economic 400 Total Total
Community Development Debt Capital Nonmajor Governmental
General Center Authority Service Projects Funds Funds
Revenues
Property taxes 6,689,647$ 402,000$ 348,515$ 2,227,646$ 707,660$ -$ 10,375,468$
Tax increments - - 679,925 - - - 679,925
Franchise taxes 211,000 - - - 56,011 165,923 432,934
Special assessments 802 - - 373,337 303,466 35,076 712,681
Licenses and permits 603,925 - - - - - 603,925
Intergovernmental 431,004 - - - 465,634 - 896,638
Charges for services 712,382 1,361,002 - - 12,000 212,184 2,297,568
Fines and forfeitures 40,054 - - - - - 40,054
Investment earnings 228,216 12,945 137,656 48,275 327,315 175,721 930,128
Interest on loans - - 5,433 - - 5,496 10,929
Other revenues 315,966 50,589 3,220 - - 66,489 436,264
Total revenues 9,232,996 1,826,536 1,174,749 2,649,258 1,872,086 660,889 17,416,514
Expenditures
Current
General government 1,777,352 - - - - - 1,777,352
Public safety 2,449,765 - - - - - 2,449,765
Public works 2,222,034 - - - - 171,604 2,393,638
Sanitation 610,944 - - - - - 610,944
Recreation and culture 1,209,429 1,874,554 - - - 53,170 3,137,153
Economic development - - 871,950 - - - 871,950
Capital outlay
Public safety - - - - 4,109,641 - 4,109,641
Public works - - - - 1,535,896 3,787 1,539,683
Recreation and culture - 319,295 - - - 1,972,833 2,292,128
Debt service
Principal - - - 2,855,000 - - 2,855,000
Interest and fiscal charges - - - 634,241 - - 634,241
Bond issuance costs - - - - 138,350 - 138,350
Total expenditures 8,269,524 2,193,849 871,950 3,489,241 5,783,887 2,201,394 22,809,845
Excess (deficiency) of revenues over expenditures 963,472 (367,313) 302,799 (839,983) (3,911,801) (1,540,505) (5,393,331)
Other financing sources (uses)
Long-term debt issued - - - - 8,000,000 - 8,000,000
Premium on long-term debt issued - - - - 131,662 - 131,662
Sale of capital assets 29,340 - - - - - 29,340
Transfers in 25,000 - - 345,000 3,458,040 2,100,000 5,928,040
Transfers out (1,450,040) - (230,000) (75,000) (5,000) (1,561,818) (3,321,858)
Total other financing sources (uses) (1,395,700) - (230,000) 270,000 11,584,702 538,182 10,767,184
Net change in fund balances (432,228) (367,313) 72,799 (569,983) 7,672,901 (1,002,323) 5,373,853
Fund balance at beginning of year 7,109,478 606,795 7,240,465 2,391,544 7,527,500 5,294,770 30,170,552
Fund balance at end of year 6,677,250$ 239,482$ 7,313,264$ 1,821,561$ 15,200,401$ 4,292,447$ 35,544,405$
The notes to the financial statements are an integral part of this statement.
24
CITY OF MONTICELLO
Reconciliation of the Statement of Revenues, Expenditures and Changes
in Fund Balances of Governmental Funds to the Statement of Activities
For the Year Ended December 31, 2019
Amounts reported for governmental activities in the Statement of Activities are different because:
Net change in fund balances - governmental funds 5,373,853$
Governmental funds reported capital outlays as expenditures. However, in the statement of activities the cost
of those assets is allocated over their estimated useful lives and reported as depreciation expense.
This is the amount by which capital outlays exceeded depreciation in the current period.
Capital outlays 7,861,759$
Capital contributions 354,200
Capital contributions to business-type activities (5,029,427)
Disposals (167,321)
Depreciation (3,977,493) (958,282)
Proceeds from long-term debt provide financial resources to governmental funds, but the issuing of debt
increases long-term liabilities in the Statement of Net Position. (8,000,000)
Repayment of long-term debt principal is an expenditure in the governmental funds, but the repayment reduces
long-term liabilities in the Statement of Net Position. 2,855,000
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.
Amortization of bond discounts (13,729)$
Amortization of bond premiums 50,318
Change in total OPEB liability and deferred outflows/inflows of resources 6,120
Change accrued interest payable (5,116) 37,593
Long-term pension activity is not reported in governmental funds
Pension revenue from state contributions 5,381
Pension expense 19,850
Deferred inflows of resources are revenues included in the change in net position, but are excluded from the change
in fund balances until they are available to liquidate liabilities of the current period.
Taxes 246$
Special assessments (445,845)
Notes receivable (61,779) (507,378)
Internal service funds are used by management to charge the costs of certain activities to individual funds
The net revenue of the internal service funds is reported with governmental activities.
Internal service fund activity included in governmental activities 439,262$
Subtract internal service fund activity allocated to business-type activities (22,614) 416,648
Change in net position of governmental activities (757,335)$
The notes to the financial statements are an integral part of this statement.
25
CITY OF MONTICELLO
Statement of Net Position
Proprietary Funds
Governmental
Activities -
265 262 263 609 656 217 Linked
601 602 652 Deputy Internal
Water Sewage Water Quality Liquor Fiber Optics Registrar Totals Service Funds
ASSETS
Current assets
Cash and investments 4,694,927$ 5,709,804$ 1,442,461$ 612,919$ 674,254$ 1,867,861$ 15,002,226$ 1,369,372$
Receivables
Unremitted special assessments Unremitted special assessmentsUnremitted special assessments 103 - - - - - 103 -
Deliquent special assessments Deliquent special assessmentsDeliquent special assessments 14,274 - - - - - 14,274 -
Deferred special assessments Deferred special assessmentsDeferred special assessments 209,212 21,245 35,076 - - - 265,533 -
Account receivable Account receivableAccounts 128,064 310,215 7,668 - 84,346 - 530,293 30
Account receivable Account receivableDue from other governmental units - - - - - 64,545 64,545 -
Inventory - - - 447,358 - - 447,358 -
Prepaid items 13,422 83,499 3,742 8,832 1,000 1,622 112,117 -
Total current assets 5,060,002 6,124,763 1,488,947 1,069,109 759,600 1,934,028 16,436,449 1,369,402
Noncurrent assets
Capital assets
Land 208,143 516,952 - 5,600 - - 730,695 -
Buildings and systems 21,273,202 48,464,534 18,761,610 807,257 14,988,890 88,101 104,383,594 -
Machinery and equipment 302,728 2,715,593 - 133,862 305,726 40,675 3,498,584 1,995,563
Total capital assets Total capital assets 21,784,073 51,697,079 18,761,610 946,719 15,294,616 128,776 108,612,873 1,995,563
Less accumulated depreciation (12,708,932) (31,396,023) (13,732,183) (841,210) (3,343,728) (53,270) (62,075,346) (686,387)
Total capital assets (net) 9,075,141 20,301,056 5,029,427 105,509 11,950,888 75,506 46,537,527 1,309,176
TOTAL ASSETS 14,135,143 26,425,819 6,518,374 1,174,618 12,710,488 2,009,534 62,973,976 2,678,578
DEFERRED OUTFLOWS OF RESOURCES
Deferred other post-employment benefits resources 10 - - 346 - 235 591 -
Deferred pension resources 12,199 15,250 - 33,550 - 18,300 79,299 -
TOTAL DEFERRED OUTFLOWS OF RESOURCES 12,209 15,250 - 33,896 - 18,535 79,890 -
(continued)
Business-Type Activities – Enterprise Funds
December 31, 2019
26
CITY OF MONTICELLO
Statement of Net Position
Proprietary Funds
December 31, 2019 (Continued)
Governmental
Activities -
Deputy Internal
Water Sewage Water Quality Liquor Fiber Optics Registrar Totals Service Funds
LIABILITIES
Current liabilities
Accounts and contracts payable 5,216$ 14,380$ -$ 141,464$ 245,618$ 2,425$ 409,103$ 8,741$
Accrued interest payable - 11,541 - - - - 11,541 453
Other accrued liabilities 7,200 - - 2,623 - - 9,823 -
Due to other governmental units 8,445 3,422 - 63,853 - 130,104 205,824 -
Bonds and loans payable - current - 294,000 - - - - 294,000 125,000
Compensated absences due within one year 11,076 11,076 - 20,770 - 8,936 51,858 201,588
Total current liabilities 31,937 334,419 - 228,710 245,618 141,465 982,149 335,782
Noncurrent liabilities
Bonds and loans payable - net current portion - 3,435,524 - - - - 3,435,524 240,000
Compensated absences payable 8,024 8,024 - 13,492 - 4,756 34,296 103,529
Total OPEB liability 5,836 4,013 - 17,687 - 9,482 37,018 -
Net pension liability 124,949 156,189 - 343,612 - 187,426 812,176 -
Total noncurrent liabilities 138,809 3,603,750 - 374,791 - 201,664 4,319,014 343,529
TOTAL LIABILITIES 170,746 3,938,169 - 603,501 245,618 343,129 5,301,163 679,311
DEFERRED INFLOWS OF RESOURCES
Deferred other post-employment benefits resources 11,372 13,099 - 14,519 - 8,123 47,113 -
Deferred pension resources 24,612 30,766 - 67,686 - 36,919 159,983 -
TOTAL DEFERRED OUTFLOWS OF RESOURCES 35,984 43,865 - 82,205 - 45,042 207,096 -
NET POSITION
Net investment in capital assets 9,075,141 16,571,532 5,029,427 105,509 11,950,888 75,506 42,808,003 944,176
Unrestricted 4,865,481 5,887,503 1,488,947 417,299 513,982 1,564,392 14,737,604 1,055,091
TOTAL NET POSITION 13,940,622$ 22,459,035$ 6,518,374$ 522,808$ 12,464,870$ 1,639,898$ 57,545,607 1,999,267$
Adjustment to reflect the cumulative internal balance for the net effect of the activity
between the internal service funds and the enterprise funds over time 118,036
Net position of business-type activities (page 19)57,663,643$
The notes to the financial statements are an integral part of this statement.
Business-Type Activities – Enterprise Funds
27
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28
CITY OF MONTICELLO
Statement of Revenues, Expenses and Changes in Net Position
Proprietary Funds
For the Year Ended December 31, 2019
Governmental
Activities -265 262 609 656 217 Linked
601 602 652 Deputy Internal
Water Sewage Water Quality Liquor Fiber Optics Registrar Totals Service Funds
Sales and cost of sales
Net sales 6,374,153$ 6,374,153$
Cost of sales (4,717,441) (4,717,441)
Gross profit 1,656,712 1,656,712
Operating revenues
Charges for services 1,235,057$ 2,442,974$ 61,757$ - 1,794,153$ 788,032$ 6,321,973 577,941$
Other 65,134 882 - 3,304 1,282 165,823 236,425 120
Total operating revenues 1,300,191 2,443,856 61,757 3,304 1,795,435 953,855 6,558,398 578,061
Operating expenses
Personal services 276,252 359,813 - 607,051 244 410,286 1,653,646 29,841
Materials and supplies 153,007 127,552 - 1,599 80,921 9,936 373,015 16,147
Other services and charges 267,713 1,109,349 - 223,820 1,524,184 38,388 3,163,454 126,928
Depreciation 523,173 1,223,111 - 33,701 385,176 7,889 2,173,050 193,494
Total operating expenses 1,220,145 2,819,825 - 866,171 1,990,525 466,499 7,363,165 366,410
Operating income (loss) 80,046 (375,969) 61,757 793,845 (195,090) 487,356 851,945 211,651
Nonoperating revenues (expenses)
Investment earnings 183,968 179,066 372 52,585 16,259 49,870 482,120 39,088
Interest expense - (74,120) - - - - (74,120) (11,477)
Total Nonoperating revenes (expenses) 183,968 104,946 372 52,585 16,259 49,870 408,000 27,611
Income (loss) before capital contributions
and transfers 264,014 (271,023) 62,129 846,430 (178,831) 537,226 1,259,945 239,262
Capital contributions 426,836 1,219,287 - - - - 1,646,123 -
Capital contributions from governmental activities - - 5,029,427 - - - 5,029,427 -
Transfers in - - 1,426,818 - - - 1,426,818 200,000
Transfers out (1,533,000) (600,000) - (2,100,000) - - (4,233,000) -
Change in net position (842,150) 348,264 6,518,374 (1,253,570) (178,831) 537,226 5,129,313 439,262
Net Position, January 1 14,782,772 22,110,771 - 1,776,378 12,643,701 1,102,672 1,560,005
Net Position, December 31 13,940,622$ 22,459,035$ 6,518,374$ 522,808$ 12,464,870$ 1,639,898$ 1,999,267$
Adjustment to reflect the consolidation of internal service fund related to enterprise funds 22,614
Change in net position of business-type activities (page 21)5,151,927$
Business-Type Activities – Enterprise Funds
The notes to the financial statements are an integral part of this statement.
29
CITY OF MONTICELLO
Statement of Cash Flows
Proprietary Funds
For the Year Ended December 31, 2019
Governmental
Activities -
265/601 262/602 652 609 656 217 Linked
601 602 Deputy Internal
Water Sewage Water Quality Liquor Fiber Optics Registrar Totals Service Funds
Cash flows from operating activities
Cash received from customers and users 1,375,699$ 2,561,792$ 54,089$ 6,377,647$ 1,789,793$ 965,472$ 13,124,492$ -$
Cash from interfund services provided - - - - - - - 578,061
Cash paid to suppliers for goods and services (414,639) (1,368,404) (3,742) (4,900,606) (1,465,167) (31,570) (8,184,128) (153,055)
Cash paid to employees (273,249) (356,322) - (605,403) (244) (408,479) (1,643,697) -
Cash paid to other funds for services provided (9,336) (11,377) - (15,474) (1,194) (19,697) (57,078) -
Net cash provided by operating activities 678,475 825,689 50,347 856,164 323,188 505,726 3,239,589 425,006
Cash flows from noncapital financing activities
Transfers from other funds - - 1,391,742 - - - 1,391,742 200,000
Transfers to other funds (1,533,000) (600,000) - (2,100,000) - - (4,233,000) -
Net cash provided (used) by noncapital financing activities (1,533,000) (600,000) 1,391,742 (2,100,000) - - (2,841,258) 200,000
Cash flows from capital and related financing activities
Capital contributions 251,436 1,120,187 - - - - 1,371,623 -
Acquisition of capital assets - (460,583) - - - (26,411) (486,994) (295,303)
Principal paid on long-term debt - (288,000) - - - - (288,000) (120,000)
Interest and fiscal charges paid on long-term debt - (76,826) - - - - (76,826) (11,619)
Net cash provided (used) by capital and related
financing activities 251,436 294,778 - - - (26,411) 519,803 (426,922)
Cash flows from investing activities
Interest on investments 183,968 179,066 372 52,585 16,259 49,870 482,120 39,088
Net increase (decrease) in cash and cash equivalents (419,121) 699,533 1,442,461 (1,191,251) 339,447 529,185 1,400,254 237,172
Cash and cash equivalents, January 1 5,114,048 5,010,271 - 1,804,170 334,807 1,338,676 13,601,972 1,132,200
Cash and cash equivalents, December 31 4,694,927$ 5,709,804$ 1,442,461$ 612,919$ 674,254$ 1,867,861$ 15,002,226$ 1,369,372$
Business-Type Activities – Enterprise Funds
(continued)
30
CITY OF MONTICELLO
Statement of Cash Flows
Proprietary Funds
For the Year Ended December 31, 2019 (Continued)
Governmental
Activities -
Deputy Internal
Water Sewage Water Quality Liquor Fiber Optics Registrar Totals Service Funds
Reconciliation of operating income (loss) to net cash
provided (used) by operating activities
Operating income (loss) 80,046$ (375,969)$ 61,757$ 793,845$ (195,090)$ 487,356$ 851,945$ 211,651$
Adjustments to reconcile operating income (loss) to
net cash provided (used) by operating activities
Depreciation 523,173 1,223,111 - 33,701 385,176 7,889 2,173,050 193,494
OPEB expense (12,762) (14,585) - (16,408) - (9,116) (52,871) -
(Increase) decrease in assets
Special assessments receivable 53,081 (10,271) - - - - 42,810 -
Accounts receivable 21,277 128,207 (7,668) - (5,642) - 136,174 -
Due from other governmental units - - - - - (17,024) (17,024) -
Inventory - - - 18,254 - - 18,254 -
Prepaid items (1,184) (62,709) (3,742) 1,405 - (238) (66,468) -
(Increase) decrease in deferred outflows
Deferred other post-employment benefits resources 787 797 - 1,113 - 562 3,259 -
Deferred pension resources 10,024 12,530 - 27,566 - 15,036 65,156 -
Increase (decrease) in liabilities
Accounts and contracts payable (2,188) (79,468) - 6,877 138,744 (2,705) 61,260 (9,980)
Other liabilities 1,150 - - 190 - - 1,340 -
Due to other governmental units 117 (703) - 244 - 28,641 28,299 -
Compensated absences 1,311 1,311 - (3,888) - (1,205) (2,471) 29,841
Net pension liability 2,903 3,629 - 7,984 - 4,355 18,871 -
Increase (decrease) in deferred inflows
Deferred other post-employment benefits resources 11,372 13,099 - 14,519 - 8,123 47,113 -
Deferred pension resources (10,632) (13,290) - (29,238) - (15,948) (69,108) -
Net cash provided (used) by operating activities 678,475$ 825,689$ 50,347$ 856,164$ 323,188$ 505,726$ 3,239,589$ 425,006$
Schedule of noncash investing, capital and
financing activities:
Net amortization of bond premium (discount) -$ 1,986$ -$ -$ -$ -$ 1,986$ -$
Capital assets purchased on account -$ (442,290)$ -$ -$ 92,225$ -$ (350,065)$ -$
Capital contributions 175,400$ 99,100$ 5,029,427$ -$ -$ -$ 5,303,927$ -$
The notes to the financial statements are an integral part of this statement.
Business-Type Activities – Enterprise Funds
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32
Notes to the Financial Statements
December 31, 2019 CITY OF MONTICELLO
NOTE 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
The basic financial statements of the city of Monticello, Minnesota (the city) have
been prepared in conformity with accounting principles (GAAP) generally
accepted in the United States of America as applied to governmental units, as
applied by the Governmental Accounting Standards Board (GASB). GASB is
the accepted standard-setting body for establishing governmental accounting
and financial reporting principles. The significant accounting policies of the city
are described as follows:
A. Reporting entity
Incorporated in 1856, the city of Monticello is designated as a third-class city
(population 10,001 to 20,000) and governed by statutory city code under
Optional Plan A in Minnesota statutes. The city falls under section 501(a) of the
Internal Revenue Code. The five-member mayor-council is elected on
staggered, even-numbered years. Councilors are elected at-large to four-year
terms while the mayor is elected to a two-year term. The governing body
appoints an administrator to implement policies and oversee daily operations.
The accompanying financial statements include all funds, departments,
agencies, boards, commissions, and other organizations that comprise the city,
along with any component units.
Component units are legally separate entities for which the city (primary
government) is financially accountable, or for which the exclusion of the
component unit would render the financial statements of the primary
government misleading. Criteria used to determine if the primary government is
financially accountable for a component unit includes whether or not the primary
government appoints the voting majority of the potential component unit’s
governing body, is able to impose its will on the potential component unit, is in
a relationship of financial benefit or burden with the potential component unit, or
is fiscally depended upon by the potential component unit.
The Monticello Economic Development Authority (EDA) was created pursuant
to Minnesota Statutes § 469.090 through § 469.108 to carryout economic and
industrial development and redevelopment within the city in accordance with
policies established by the City Council. The seven-member Board of Directors
consists of two councilmembers and five members from the community
appointed by the City Council. The City Council reviews and approves the tax
levy and all expenditures for the EDA. Therefore, the EDA is reported as a
blended component unit within the EDA Special Revenue Fund. Separate
financial statements are not issued for this component unit.
The mayor and council are responsible for appointing some members of other
organizations. However, the city’s accountability for these organizations does
not extend beyond making appointments.
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 activities of the
primary government and its component unit. 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 is offset by program revenues. Direct
expenses are those that are clearly identifiable with a specific function. 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
operation 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 and
proprietary funds. Major individual governmental funds and major individual
enterprise funds are reported as separate columns in the fund financial
statements. Aggregated information for the remaining nonmajor funds are
reported in single columns in the respective fund financial statements.
The city applies restricted resources first when an expense is incurred for which
both restricted and unrestricted resources are available. Depreciation expense
is included in the direct expense of each function. Interest on long-term debt of
governmental activities is considered an indirect expense and is reported
separately on the Statement of Activities.
C. Measurement focus, basis of accounting, and financial statement
presentation
The government-wide financial statements are reported using the economic
resources measurement focus and the accrual basis of accounting, as are the
proprietary fund financial statements. Revenues are recorded when earned and
expenses are recorded when a liability is incurred, regardless of the timing of
related cash flows. Property taxes and special assessments, if levied, are
recognized as revenues in the year for which they are levied. Grants and similar
33
Notes to the Financial Statements
December 31, 2019 CITY OF MONTICELLO
items are recognized as revenue as soon as all eligibility requirements imposed
by the provider have been met.
Governmental fund financial statements are reported using the current financial
resources measurement focus and the modified accrual basis of accounting.
Revenues are recognized as soon as they are both measurable and available.
Revenues are considered available when they are collectible with the current
period or soon enough thereafter to pay liabilities of the current period. For this
purpose, the city considers revenue 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 claims and
judgments, compensated absences, other post-employment benefits, and net
pension liabilities, are recognized as expenditures to the extent they have
matured. Capital asset acquisitions are reported as capital outlay expenditures
in the governmental funds. Proceeds from long-term debt are reported as other
financing sources.
Property taxes, franchise taxes, licenses, and investment interest associated
with the current fiscal period are all considered to be susceptible to accrual and
have been recognized as revenues of the current fiscal period. All other revenue
items are considered to be measurable and available only when cash is received
by the city.
Since governmental fund statements are presented using a measurement focus
and basis of accounting different from that used in the government-wide
statements’ governmental column, a reconciliation is presented that briefly
explains the adjustments necessary to reconcile ending net position and the
change in net position.
In the fund financial statements, financial transactions and accounts of the city
are organized on the basis of funds. The operation of each fund is considered
to be an independent fiscal and separate accounting entity, with a self-balancing
set of accounts recording cash and/or other financial resources together with all
related liabilities and residual equities or balances, and changes therein, which
are segregated for the purpose of carrying on specific activities or attaining
certain objectives in accordance with special regulations, restriction, or
limitations.
Major Governmental Funds – The major governmental funds reported by the
city are as follows:
General Fund – The General Fund is used to account for all financial
resources except those required to be accounted for in another fund.
Community Center Fund – The Community Center (special revenue) Fund
accounts for the revenues and expenditures related to the community
center. In addition to a property tax allocation, the community center
generates significant revenue from charges for memberships, program
activities, and space rentals.
Economic Development Authority (EDA) Fund – The EDA (special revenue)
Fund is used to account for revenues and expenditures related to the
blended component unit. Tax increments, generated mainly by economic
and redevelopment districts, and a property tax levy are the EDA’s primary
revenue sources.
Debt Service Fund – The Debt Service Fund is used to account for the
accumulation of resources for and the payment of long-term debt principal,
interest, and related costs.
Capital Projects Fund – The Capital Projects Fund is used to account for
financial resources to be used for the acquisition or construction of major
capital facilities and infrastructure (other than those financed by proprietary
funds).
Major Proprietary Funds – The city reports the following major proprietary funds:
Water Fund – The Water (enterprise) Fund is used to account for all
activities necessary to provide water services to the residents and
businesses of the city.
Sewage Fund – The Sewage (enterprise) Fund is used to account for all
activities necessary to provide sewage services to the residents and
businesses of the city.
Water Quality Fund – The Water Quality (enterprise) Fund is used to
account for all activities necessary to provide stormwater maintenance and
street sweeping services to the residents and businesses of the city.
Liquor Fund – The Liquor (enterprise) Fund is used to account for the
operations of the city’s liquor store.
Fiber Optics Fund – The Fiber Optics (enterprise) Fund is used to account
for all activities necessary to provide fiber optic services to the residents
and businesses of the city.
Deputy Registrar Fund – The Deputy Registrar (enterprise) Fund is used to
account for the operation of city’s department of motor vehicles.
34
Notes to the Financial Statements
December 31, 2019 CITY OF MONTICELLO
Additionally, the city reports the following fund type:
Internal Service Funds – These funds account for the city’s benefit accrual,
central equipment, and information technology services. Internal service
funds operate in a manner similar to enterprise funds; however, they
provide services primarily to other city departments.
As a general rule, the effect of interfund activity has been eliminated from the
government-wide financial statements. Exceptions to this general rule are
charges between the city’s enterprise funds and various other functions of the
city. Elimination of these charges would distort the direct costs and program
revenues of the various functions involved.
Amounts reported as program revenues include 1) charges to customers or
applicants for goods, services, or privileges provided, 2) operating grants and
contributions, and 3) capital grants and contributions, including special
assessments. Internally dedicated resources are reported as general revenues
rather than as program revenues. Likewise, general revenues include all taxes
the city has the authority to impose.
Proprietary funds distinguish operating revenues and expenses from non-
operating 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’s enterprise and internal service funds are charges to
customers for sales and services. Operating expenses for enterprise and
internal service funds include cost of sales and services, administrative
expenses, and depreciation on capital assets. All revenue and expenses not
meeting this definition are reported as non-operating revenues and expenses.
Aggregated information for the internal service funds is reported in a single
column in the proprietary fund financial statements. Because the principal user
of the internal services is the city’s governmental activities, the financial
statements of the internal service funds are consolidated into the governmental
column when presented in the government-wide financial statements. The cost
of these services is reported in the appropriate functional activity.
D. Cash and Investments
Cash and investments include balances from all funds that are combined and
invested to the extent available in savings accounts, certificates of deposit, U.S.
government obligations, and other securities authorized by state statutes.
Earnings from investments are allocated to the respective funds on the basis of
applicable participation by each fund.
For purposes of the statement of cash flows, the city considers all highly liquid
debt instruments with an original maturity from the time of purchase by the city
of three months or less to be cash equivalents. The proprietary fund’s equity in
the government-wide cash and investment management pool is considered to
be cash equivalent.
Investments are generally stated at fair value, except for investments in external
investment pools, which are stated at amortized cost. Short-term highly liquid
debt instruments (including commercial paper, banker’s acceptances, and U.S.
treasury and agency obligations) purchased with a remaining maturity of one
year or less are reported at amortized cost. Investment income is accrued at the
balance sheet date.
The city categorizes its fair value measurements within the fair value hierarchy
established by accounting principles generally accepted in the United States of
America. The hierarchy is based on the valuation inputs used to measure the
fair value of the asset as follows:
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.
Debt securities classified in Level 2 of the fair value hierarchy are valued using
a matrix pricing technique. Matrix pricing is used to value securities based on
the securities’ relationship to benchmark quoted prices. See Note 2 for the city’s
recurring fair value measurements as of December 31, 2019.
E. Property Taxes
Property tax levies are set by the city council each year and are certified to
Wright County for collection in the following year. In Minnesota, counties act as
collection agents for all property taxes.
Wright County spreads all levies over taxable property. Such taxes become a
lien on January 1 and are recorded as receivables by the city on that date. Most
property taxes can be paid without penalty and interest by taxpayers in two
equal installments on May 15 and October 15. Wright County provides tax
settlements to cities and other taxing districts several times throughout the year.
Within the governmental fund financial statements, the city recognizes property
tax revenue when it becomes both measurable and available to finance
expenditures of the current period. Taxes which remain unpaid at December 31
are classified as delinquent taxes receivable and are offset by deferred inflows
of resources because it is not available to finance current expenditures.
35
Notes to the Financial Statements
December 31, 2019 CITY OF MONTICELLO
Deferred inflows of resources in governmental activities are susceptible to full
accrual on the government-wide financial statements.
F. Special Assessments
Special assessments are levied against the benefiting properties for the
assessable costs of special assessment improvement projects in accordance
with Minnesota Statutes. The city usually adopts assessment rolls when
individual public improvement projects are complete or substantially complete.
The assessments are collectible over a term of years generally consistent with
the term of years for the related bond issue.
Collection of annual installments (including interest) is handled by the county in
the same manner as property taxes. Property owners are allowed to prepay
total future installments without interest or prepayment penalties.
Once a special assessment roll is adopted, the amount attributed to each parcel
is a lien upon that property until full payment is made or the amount is
determined to be excessive by the city council or court action. If special
assessments are left unpaid, the property is subject to tax forfeited sale and the
first proceeds of that sale (after costs, penalties, and expenses of sale) are
remitted to the city in payment of delinquent special assessments. Generally,
the city will collect the full amount of its special assessments not adjusted by
city council or court action. Pursuant to state statutes, a property shall be
subject to tax forfeit sale after three years of delinquency except for
homesteaded, agricultural or seasonal recreational property, which is subject to
sale after five years.
These assessments are recorded as delinquent (levied, but not yet paid) and
deferred (certified, but not yet levied) special assessments receivable, and are
offset by deferred inflows of resources in the governmental fund financial
statements. Special assessment amounts collected by Wright County, but not
paid to the city before year-end are recorded as unremitted special
assessments.
G. Receivables
Utility and miscellaneous accounts receivable are reported at gross value. Since
the city is generally able to certify delinquent amounts to the county for collection
as special assessments, no allowance for uncollectible accounts has been
provided on current receivables.
The city contracted with a third party to manage Fibernet beginning on July 1,
2016. On a monthly basis, the city receives amounts billed by Arvig with an
estimated portion withheld for uncollectible account. Customer receivable
balances are carried by Arvig rather than the city. Therefore, no allowance for
uncollectible accounts is set up in the proprietary Fiber Optics Fund.
A receivable is considered past due if any portion of the receivable balance is
outstanding for more than 30 days. Interest is charged on receivables that are
considered past due. Accrual of interest is not suspended until a receivable is
determined to be uncollectible. Provisions for bad debts would be insignificant
and none have been made for 2019.
Interest receivable is recorded as revenue in the year the interest is earned and
is available to pay liabilities of the current period. The interest receivable
balance is reported as one amount in the General Fund while all other funds
receive interest revenue distributions in cash.
H. Inventories
The inventories of the proprietary funds are stated at cost using the first-in, first-
out (FIFO) method. Enterprise fund inventory consists of merchandise held for
resale at the city-owned Hi-Way Liquors store.
I. Prepaid Items
Payments to vendors for services that will benefit future accounting periods are
recorded as prepaid. Prepaid items are accounted for using the consumption
method. Fund balance in an amount equal to the prepaid balance in the related
funds is not available for appropriation, and is, therefore, classified as
nonspendable.
J. Notes Receivable
Notes receivable consist of loans made by the city or EDA to area businesses
for development or redevelopment purposes. The terms and interest rates of the
individual loans vary. Notes receivable that are passed through to another entity
are offset by deferred inflows of resources in the governmental funds.
K. Land Held for Resale
Land held for resale is recorded in the governmental fund which purchased it at
the lower of cost or acquisition value. Fund balances are reported as restricted
or assigned in an amount equal to the land’s carrying value in the governmental
funds as these assets are not available for appropriation.
36
Notes to the Financial Statements
December 31, 2019 CITY OF MONTICELLO
L. Capital Assets
Capital assets, which include property, plant, equipment, and infrastructure
assets (roads, bridges, sidewalks, and similar items) are reported in the
applicable governmental or business-type activities columns in the government-
wide financial statements. Such assets are capitalized at historical cost or
estimated historical cost for assets where actual historical cost is not available.
Donated capital assets are recorded at their estimated acquisition value at the
date of donation. The city’s capitalization policy divides each asset into a class
with a related threshold as follows:
Class of Asset Threshold Level
Land $1
Land improvements $50,000
Building/building improvements $20,000
Primary infrastructure and utility $75,000
Secondary infrastructure $25,000
Equipment $10,000
Software and non-tangible $10,000
The cost of normal maintenance and repairs that does not add to the value of
the asset or materially extend an asset’s useful life is not capitalized. The city
has elected to fully capitalize the infrastructure capital assets of its governmental
activities regardless of their acquisition date or amount.
Capital assets are recorded in the government-wide and proprietary fund
financial statements but are not reported in the governmental funds financial
statements. Interest incurred during the construction phase of capital assets for
business-type activities is included as part of the capitalized value of the assets
constructed.
Capital assets are depreciated using the straight-line method over their
estimated useful lives. Since surplus assets are generally sold for an immaterial
amount when no longer needed for city purposes, no salvage value is taken into
consideration for depreciation purposes. Useful lives vary from 10 to 40 years
for infrastructure; 5 to 20 years for vehicles, machinery, furniture and equipment,
and software and non-tangible items; 12 to 40 years for buildings; and 10 to 20
years for improvements other than buildings. Capital assets not being
depreciated include land and construction in progress.
M. Deferred Outflows of Resources
In addition to assets, the statement of net position and/or balance sheet will
sometimes report a separate section for deferred outflows of resources. This
separate financial statement element represents a consumption of net position
that applies to future periods and so will not be recognized as an outflow of
resources (expense/expenditure) until that time. The city has two types of items,
which arise under a full accrual basis of accounting, that qualify for reporting in
this category. Accordingly, the items, deferred other post-employment benefits
resources and deferred pension resources, are reported only in the statement
of net position. These items result from other post-employment benefits and
pension-related actuarial calculations and current year contributions made
subsequent to the measurement date.
N. Long-Term Liabilities
In the government-wide and proprietary fund financial statements, long-term
debt and other long-term obligations are reported as liabilities. Bond premiums
and discounts, if material, are deferred and amortized over the life of the bonds
using the straight-line method.
In the fund financial statements, governmental fund types recognize bond
premiums and discounts during the current period. Premiums received on debt
issuances are reported as other financing sources while discounts on debt
issuances are reported as other financing uses. The par amount of debt issued
is reported as other financing sources. Issuance costs, whether or not withheld
from the actual debt proceeds received, are reported as debt service
expenditures.
O. Compensated Absences Payable
City employees earn vacation and sick leave or paid-time-off (PTO) based upon
the number of completed years of service. The city compensates employees for
unused vacation/PTO upon termination of employment. All new full-time
employees receive PTO, while three employees still receive vacation and sick
leave benefits. Full-time employees who resign or leave city employment
voluntarily and in good standing, after giving proper notice, shall be
compensated for unused days under their respective plan. PTO is credited at
the beginning of each fiscal year for existing employees and prorated for the
fiscal year for new employees. Vacation and sick leave are accrued by pay
period.
PTO benefit: Up to 320 hours accrued at year-end plus any current year hours
earned to their date of severance multiplied by their ending hourly rate.
37
Notes to the Financial Statements
December 31, 2019 CITY OF MONTICELLO
Sick leave benefit: One-half of the unused sick leave up to 800 hours and all
unused sick leave above 800 hours times their hourly rate at the time of
severance.
All compensated absences are accrued when incurred in the government-wide
and proprietary fund financial statements. The liability for governmental funds is
recorded in the Benefit Accrual (internal service) Fund. Resignations and
retirements of employees reduce the liability in the Benefit Accrual Fund or the
applicable enterprise fund.
P. Pensions
For purposes of measuring the net pension liability (asset), deferred
outflows/inflows of resources, and pension expense, information about the
fiduciary net position of the Public Employees Retirement Association (PERA)
and Monticello Fire Relief (FRA) and additions to/deductions from each plan’s
fiduciary net position have been determined on the same basis as they are
reported by each plan, 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 or applicable enterprise fund will be used to liquidate these
liabilities.
The PERA has a special funding situation created by a direct aid contribution
made by the state of Minnesota. The direct aid is a result of the merger of the
Minneapolis Employees Retirement Fund into the PERA on January 1, 2015.
Q. Deferred Inflows of Resources
In addition to liabilities, the statement of net position and/or balance sheet will
sometimes report a separate section for deferred inflows of resources. This
separate financial statement element represents an acquisition of net position
that applies to future periods and so will not be recognized as an inflow of
resources (revenue) until that time. The city has three types of items that qualify
for reporting in this category. First, deferred other post-employment benefits and
pension resources, which arise under a full-accrual basis of accounting, is
reported only in the statement of net position. These amounts are the result of
actuarial calculations involving net differences between expected and actual
economic experience, changes in actuarial assumptions, net differences
between projected and actuarial earnings, and changes in proportion and are
deferred and recognized as an inflow of resources in accordance with actuarial
calculations. Second, deferred MSA state aid is reported. This amount is the
result of an advance of state aid allocated to future periods. Third, unavailable
revenue, which arises under the modified accrual basis of accounting, is
reported in the governmental funds balance sheet. Governmental funds report
unavailable revenue from four sources: property taxes, special assessments,
notes receivable, and MSA state aid and grants. These amounts are deferred
and recognized as an inflow of resources in the period the amounts become
available or are allocated to the city.
R. Net Position
In the government-wide and proprietary fund financial statements, 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:
Net investment in capital assets – Consists of capital assets, net of
accumulated depreciation, reduced by any outstanding debt
attributable to acquire capital assets.
Restricted net position – Consists of net position restricted when
there are limitations imposed on their use through external restrictions
imposed by creditors, grantors, or laws or regulations of other
governments.
Unrestricted net position – All other net position that does not meet
the definition of “net investment in capital assets” or “restricted.”
S. Fund Balance Classifications
In the fund financial statements, governmental funds report fund balance in
classifications that disclose constraints for which amounts in those funds can be
spent. These classifications are as follows:
Nonspendable – Consists of amounts that are not in spendable form,
such as prepaid items, inventory, and other long-term assets.
Restricted – Consists of amounts related to externally imposed
constraints established by creditors, grantors, or contributors; or
constraints imposed by state statutory provisions.
Committed – Consists of internally imposed constraints that are
established by resolution by the city council, which is the city’s highest
level of decision-making authority. Those committed amounts cannot
be used for any other purpose unless the city council modifies or
rescinds the commitment by resolution.
38
Notes to the Financial Statements
December 31, 2019 CITY OF MONTICELLO
Assigned – Consists of internally imposed constraints. These
constraints consist of amounts intended to be used by the city for
specific purposes but do not meet the criteria to be classified as
restricted or committed. In governmental funds, assigned amounts
represent intended uses established by the governing body itself or by
an official to which the governing body delegates the authority.
Pursuant to city council resolution, the council, city administrator, or
finance director are authorized to establish assignments of fund
balance.
Unassigned – The residual classification for the General Fund which
also reflects negative residual amounts in other funds.
When both restricted and unrestricted resources are available for use, it is the
city’s policy to first use restricted resources, then use unrestricted resources as
they are needed. When committed, assigned, or unassigned resources are
available for use, it is the city’s policy to use resources in the following order: 1)
committed, 2) assigned, and 3) unassigned.
T. Budget
Budgets for the General Fund and all special revenue funds are adopted on a
basis consistent with accounting principles generally accepted in the United
States of America. Reported budget amounts are as originally adopted or as
amended by city council-approved supplemental appropriations and budget
transfers. No budget amendments were adopted during the year. Budget
appropriations lapse at year-end. The legal level of budgetary control is at the
department level in the General Fund and at the fund level in the major special
revenue funds. As shown in the Required Supplementary Information on pages
64-66, expenditures in the Community Center and Economic Development
Authority special revenue funds were over budget in 2019.
U. Use of Estimates
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 the reported amounts of assets,
liabilities, and deferred outflows/inflows and disclosure of contingent assets,
liabilities, and deferred outflows/inflows at the date of the financial statements
and the reported amounts of revenues and expenses/expenditures during the
reporting period. Actual results could differ from those estimates.
V. Future Applicable Changes in Accounting Standards
In June 2017, GASB issued Statement No. 87, Leases. This Statement
increases the usefulness of governments’ financial statements by requiring
recognition of certain lease assets and liabilities for leases that previously were
classified as operating leases and recognized as inflows of resources or
outflows of resources based on the payment provisions of the contract. It
establishes a single model for lease accounting based on the foundational
principle that leases are financings of the right to use an underlying asset. Under
this Statement, a lessee is required to recognize a lease liability and an
intangible right-to-use lease asset, and a lessor is required to recognize a lease
receivable and a deferred inflow of resources, thereby enhancing the relevance
and consistency of information about governments’ leasing activities. This
statement is effective for the city’s fiscal year ending December 31, 2022.
In June 2018, GASB issued Statement No. 89, Accounting for Interest Costs
Incurred Before the End of a Construction Period. This Statement establishes
accounting requirements for interest cost incurred before the end of a
construction period. Such interest cost includes all interest that previously was
accounted for in accordance with the requirements of paragraphs 5–22 of
Statement No. 62, which are superseded by this Statement. This Statement
requires that interest cost incurred before the end of a construction period be
recognized as an expense in the period in which the cost is incurred for financial
statements prepared using the economic resources measurement focus. As a
result, interest cost incurred before the end of a construction period will not be
included in the historical cost of a capital asset reported in a business-type
activity or enterprise fund. This Statement also reiterates that in financial
statements prepared using the current financial resources measurement focus,
interest cost incurred before the end of a construction period should be
recognized as an expenditure on a basis consistent with governmental fund
accounting principles. This statement is effective for the city’s fiscal year ending
December 31, 2021.
In May 2019, GASB issued Statement No. 91, Conduit Debt Obligations. The
primary objectives of this Statement are to provide a single method of reporting
conduit debt obligations by issuers and eliminate diversity in practice associated
with (1) commitments extended by issuers, (2) arrangements associated with
conduit debt obligations, and (3) related note disclosures. This Statement
clarifies the existing definition of a conduit debt obligation; establishes that a
conduit debt obligation is not a liability of the issuer; establishes standards for
accounting and financial reporting of additional commitments and voluntary
commitments extended by issuers and arrangements associated with conduit
debt obligations; and improves required note disclosures. This statement is
effective for the city’s fiscal year ending December 31, 2022.
39
Notes to the Financial Statements
December 31, 2019 CITY OF MONTICELLO
NOTE 2. CASH, CASH EQUIVALENTS, AND INVESTMENTS
A. Components of Cash and Investments
Cash and investments at year-end consist of the following:
B. Deposits
In accordance with applicable Minnesota Statutes, the city maintains deposits
at depository banks authorized by the city council, including checking accounts
and non-negotiable certificates of deposit.
The following is considered the most significant risk associated with deposits.
Custodial Credit Risk – In the case of deposits, this is the risk that in the
event of a bank failure, the city’s deposits may be lost.
Minnesota Statutes require that all deposits be protected by federal deposit
insurance, corporate surety bond, or collateral. The fair value of collateral
pledged must equal 110% of the deposits not covered by federal deposit
insurance or corporate surety bonds. Authorized collateral includes
treasury bills, notes, and bonds; issues of U.S. government agencies;
general obligations rated “A” or better; revenue obligations rated “AA” or
better; irrevocable standard letters of credit issued by the Federal Home
Loan Bank; and certificates of deposit. Minnesota Statutes require that
securities pledged as collateral be held in safekeeping in a restricted
account at the 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 city’s
investment policy does not provide further requirements regarding custodial
credit risk.
At year-end, the carrying amount of the city’s deposits was $12,622,723
while the balance on bank records was $13,438,417. All deposits were
covered by federal depository insurance, surety bonds, or by collateral held
by the city’s agent in the city’s name.
C. Investments
Custodial Credit Risk – For investments, this is the risk that in the event
of a failure of the counterparty to an investment transaction (typically a
broker-dealer) the city would not be able to recover the value of its
investments or collateral securities that are in the possession of an outside
party. The city’s investment policy does not provide additional requirements
beyond state statutes, but the city typically limits its exposure by purchasing
insured or registered investments, or by the control of who holds the
securities.
Credit Risk – This is the risk that an issuer or other counterparty to an
investment will not fulfill its obligations. Minnesota Statutes limit the city’s
investments to direct obligations or obligations guaranteed by the United
States or its agencies; shares of investment companies registered under
the Federal Investment Company Act of 1940 that receive the highest credit
rating, are rated in one of the two highest rating categories by a statistical
rating agency, and all of the investments have a final maturity of 13 months
or less; general obligations rated “A” or better; revenue obligations rated
“AA” or better; general obligations of the Minnesota Housing Finance
Agency rated “A” or better; bankers’ acceptances of United States banks
eligible for purchase by the Federal Reserve System; commercial paper
issued by United States corporations or their Canadian subsidiaries, rated
of the highest quality category by at least two nationally recognized rating
agencies, and maturing in 270 days or less; Guaranteed Investment
Contracts guaranteed by a United States commercial bank, domestic
branch of a foreign bank, or a United States insurance company, and with
a credit quality in one of the top two highest categories; repurchase or
reverse purchase 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 $10,000,000; that are a primary reporting dealer in
U.S. government securities to the Federal Reserve Bank of New York; or
certain Minnesota securities broker-dealers. The city’s investment policy
does not further address credit risk.
Concentration Risk – This is the risk associated with investing a significant
portion of the city’s investment (5% or more) in the securities of a single
issuer, excluding U.S. guaranteed investments (such as treasuries),
investment pools, and mutual funds. The city’s investment policy requires
that no more than 5% of the overall portfolio may be invested in the
securities of a single issuer, except for the securities of the U.S. government
and in agencies or an external investment pool. No single issuer held more
than 5% of the city’s total investments at December 31, 2019.
Deposits 12,622,723$
Investments 38,204,209
Cash on hand 8,425
Total cash and investments – Statement of Net Position 50,835,357$
40
Notes to the Financial Statements
December 31, 2019 CITY OF MONTICELLO
Interest Rate Risk – This is the risk of potential variability in the fair value
of fixed rate investments resulting from changes in interest rates (the longer
the period for which an interest rate is fixed, the greater the risk). The city’s
investment policy does not further address the duration of investments.
The Minnesota Municipal Money Market Fund (4M Fund) is a common-law trust
organized in accordance with the Minnesota Joint Powers Act, which invests
only in investment instruments allowable under Minnesota Statutes. It is an
external investment pool regulated by Minnesota statutes and the Board of
Directors of the League of Minnesota Cities. The 4M Fund is not registered with
the Securities Exchange Commission (SEC), but it follows the same regulatory
rules of the SEC. The fair value of the city’s position in the pool is the same as
the value of the pool shares. The 4M Fund does not have any restrictions on
participant withdrawals. The city’s investment in the 4M Fund is measured at the
net asset value per share provided by the pool, which is based on an amortized
cost method that approximates fair value.
The city’s cash management and investment policy complies with all statutory
requirements.
D. Cash on hand
Cash on hand consists of cash in the possession of the city, including petty
cash and change funds.
The following schedule provides information on credit and interest rate risks by investment type for the city’s investments at December 31, 2019:
Fair Value
Measurements Less More Percent of
Rating Agency Using Than 1 1 to 5 5 to 10 Than 10 Total Holdings
U.S. agency securities
Federal Farm Credit Bank AA+ S&P Level 2 -$ 789,139$ -$ -$ 789,139$ 2.1%
Federal Agriculture Mortgage
Corporation N/R N/A Level 2 - - - 758,103 758,103 2.0%
Federal Home Loan Bank AA+ S&P Level 2 - 551,840 497,260 385,515 1,434,615 3.8%
Negotiable certificates of deposit N/R N/A Level 2 5,831,105 7,215,052 735,016 - 13,781,173 36.1%
Local government securities AAA S&P Level 2 - - - 2,028,235 2,028,235 5.3%
Local government securities Aaa Moody’s Level 2 - - - 1,535,850 1,535,850 4.0%
Local government securities Aa Moody’s Level 2 - 145,649 - 765,995 911,644 2.4%
Local government securities A Moody’s Level 2 - 477,044 - - 477,044 1.2%
Investment pools and mutual funds N/R N/A Amortized Cost 16,257,082 - - - 16,257,082 42.6%
Investment pools and mutual funds AAA S&P Amortized Cost 231,324 - - - 231,324 0.6%
Total investments 22,319,511$ 9,178,724$ 1,232,276$ 5,473,698$ 38,204,209$ 100.0%
N/R – Not Rated
N/A – Not Applicable
Credit Risk Interest Risk - Maturity Duration in Years
Investment Type
41
Notes to the Financial Statements
December 31, 2019 CITY OF MONTICELLO
NOTE 3. CAPITAL ASSETS
Capital asset activities for the year end December 31, 2019 are as follows:
January 1, Transfers and December 31, Governmental
Beginning Completed Ending Internal Service Governmental Internal Service Activities
Balance Additions Deletions Construction Balance Fund Assets Activities Total Fund Additions Additions
Governmental activities
Nondepreciable capital assets:
Land 10,908,050$ 159,534$ (47,000)$ -$ 11,020,584$ -$ 11,020,584$ -$ 159,534$
Construction in progress 9,663,111 7,725,727 - (10,049,563) 7,339,275 - 7,339,275 - 7,725,727
Total capital assets, not depreciated 20,571,161 7,885,261 (47,000) (10,049,563) 18,359,859 - 18,359,859 - 7,885,261
Depreciable capital assets:
Buildings and systems 102,600,286 330,698 (142,995) (8,817,181) 93,970,808 - 93,970,808 - 330,698
Machinery and equipment 6,122,457 295,303 (44,214) 105,134 6,478,680 1,995,563 4,483,117 295,303 -
Total capital assets, depreciated 108,722,743 626,001 (187,209) (8,712,047) 100,449,488 1,995,563 98,453,925 295,303 330,698
Less accumulated depreciation for:
Buildings and systems (57,051,376) (3,887,215) 22,674 13,732,183 (47,183,734) - (47,183,734) - (3,887,215)
Machinery and equipment (4,383,768) (283,772) 44,214 - (4,623,326) (686,387) (3,936,939) (193,494) (90,278)
Total accumulated depreciation (61,435,144) (4,170,987) 66,888 13,732,183 (51,807,060) (686,387) (51,120,673) (193,494) (3,977,493)
Net capital assets, depreciated 47,287,599 (3,544,986) (120,321) 5,020,136 48,642,428 1,309,176 47,333,252 101,809 (3,646,795)
Total governmental activities 67,858,760$ 4,340,275$ (167,321)$ (5,029,427)$ 67,002,287$ 1,309,176$ 65,693,111$ 101,809$ 4,238,466$
Business-type activities
Nondepreciable capital assets:
Land 730,695$ -$ -$ -$ 730,695$
Depreciable capital assets:
Buildings and systems 85,255,259 366,725 - 18,761,610 104,383,594
Machinery and equipment 3,488,117 44,704 (34,237) - 3,498,584
Total capital assets, depreciated 88,743,376 411,429 (34,237) 18,761,610 107,882,178
Less accumulated depreciation for:
Buildings and systems (44,319,950) (2,032,031) - (13,732,183) (60,084,164)
Machinery and equipment (1,884,400) (141,019) 34,237 - (1,991,182)
Total accumulated depreciation (46,204,350) (2,173,050) 34,237 (13,732,183) (62,075,346)
Net capital assets, depreciated 42,539,026 (1,761,621) - 5,029,427 45,806,832
Total business-type activities 43,269,721$ (1,761,621)$ -$ 5,029,427$ 46,537,527$
42
Notes to the Financial Statements
December 31, 2019 CITY OF MONTICELLO
Depreciation for the year ended December 31, 2019 was charged to
functions/programs as follows:
NOTE 4. COMMITMENTS
During fiscal 2019, the city awarded contracts for various construction and
remodeling projects. The city’s commitments for uncompleted work on these
contracts at December 31, 2019 are approximately as follows:
In 2019, the city entered into an investment agreement with Novel Solar Two LLC
(Novel) at a solar farm. The city pays Novel $0.119 per kilowatt-hour (kWh)
generated. Novel then sells the produced solar energy to Xcel Energy, and, in
return, the city receives an energy credit on its monthly electric bills from Xcel
Energy. As of December 31, 2019, no payments have been made nor have any
credits been received on Xcel Energy bills, but activity will begin in 2020.
NOTE 5. LONG-TERM LIABILITIES
A. Description
The city has the following types of long-term liabilities outstanding at December
31, 2019:
General Obligation Bonds – The general obligation bond issues
financed a settlement with telecommunication revenue bondholders,
capital equipment purchases in the Central Equipment and Capital
Projects funds, and construction of a new fire station.
General Obligation Certificates of Indebtedness – The city issued
general obligation certificates of indebtedness to provide financing for
capital equipment. Debt service is covered by general property taxes.
General obligation certificates of indebtedness are direct obligations
that pledge the full faith and credit of the city.
Special Assessment Bonds – These bonds are payable primarily
from special assessments levied on the properties benefiting from the
improvements funded by these issues. Any deficiencies in revenue to
fund these issues will be provided from general property taxes.
Tax Abatement Bonds – The principal balances on these bonds are
payable primarily from a special tax abatement levy, and interest is
paid from general property taxes.
General Obligation Revenue Bonds – The outstanding general
obligation revenue bond financed improvements to the city’s sewer
system. They will be repaid from revenues pledged and are backed by
the taxing power of the city. Net operating revenues were $2,443,856
and principal and interest payments were $241,098 for a percentage
of revenues of 9.87%.
PFA Loan – This loan was issued for improvements to the wastewater
treatment plant and is payable primarily from user fees which benefit
from the improvements.
Compensated Absences – The city provides vacation and sick or
paid-time-off (PTO) leave benefits to eligible employees. The liability
will be repaid by the Benefit Accrual fund or respective enterprise fund
for which each employee is employed.
Total OPEB Liability – The city provides post-employment benefits to
certain eligible employees through the city’s OPEB Plan. The liability
will be repaid based on a pay-as-you-go financing requirement from
the General fund or applicable enterprise fund.
Governmental activities
General government 33,644$
Public safety 57,661
Public works 3,338,046
Recreation and culture 548,142
Capital assets held by the City’s internal service funds –
charged to the various functions based on usage of assets 193,494
Total depreciation expense – governmental activities 4,170,987$
Business-type activities
Water 523,173$
Sewage 1,223,111
Liquor 33,701
Fiber Optics 385,176
Deputy Registrar 7,889
Total depreciation expense – business-type activities 2,173,050$
Amount
Contract Paid Remaining
Project Description Amount To-Date 12/31/2019
Capital projects Fire Station Building 4,089,768$ 3,486,577$ 603,191$
Capital projects 2018 Pedestrian
Improvements 432,106 352,359 79,747
Capital projects 2019 Pedestrian
Improvements 351,940 346,190 5,750
Nonmajor
governmental Bertram Park Improvements 1,674,527 1,409,422 265,105
Nonmajor
governmental River Walk Trail 123,666 67,691 55,975
6,672,007$ 5,662,239$ 1,009,768$
Fund
43
Notes to the Financial Statements
December 31, 2019 CITY OF MONTICELLO
Long-term liabilities at year-end are summarized as follows:
B. Changes in Long-Term Liabilities
Final
Original Interest Maturity Balance –
Issue Rate % Issue Date Date End of Year
Governmental activities
General obligation bonds
2014A General
obligation bonds
judgment portion 6,080,000$ 1.00 - 3.50 % 12/18/2014 12/15/2030 4,665,000$
equipment portion 515,000 1.00 - 3.05 12/18/2014 12/15/2024 295,000
2019A General
obligation bonds
CIP portion 5,350,000 2.00 - 2.30 09/18/2019 12/15/2034 5,350,000
equipment portion 1,290,000 2.00 09/18/2019 12/15/2028 1,290,000
Other general obligation debt
2013A Certificate
of indebtedness 500,000 0.35 - 2.10 04/26/2013 12/01/2020 70,000
Special assessments bonds
2011A General obligation
refunding bonds 10,735,000 2.00 - 3.00 10/19/2011 02/01/2023 1,615,000
2015B General
obligation bonds 2,605,000 1.50 - 3.00 11/01/2015 12/15/2030 1,990,000
2016A General
obligation bonds 4,900,000 2.00 - 3.00 11/15/2016 12/15/2030 3,605,000
2017A General
obligation bonds 2,040,000 2.00 - 2.50 10/24/2017 12/15/2027 1,670,000
2019A General
obligation bonds 320,000 2.00 09/18/2019 12/15/2028 320,000
Tax abatement bonds
2017A General
obligation bonds 2,960,000 2.00 - 3.00 10/24/2017 12/15/2032 2,625,000
2018A General
obligation bonds 5,000,000 3.00 - 3.38 10/23/2018 12/15/2032 4,725,000
2019A General
obligation bonds 1,040,000 2.00 - 2.20 09/18/2019 12/15/2032 1,040,000
Net premiums
(discounts) on bonds 69,188
Compensated absences payable 305,116
Total OPEB liability 90,631
Total governmental activities 29,724,935$
Original Interest Maturity Balance –
Issue Rate % Issue Date Date End of Year
Business-type activities
General obligation revenue bonds
2013B Wastewater
treatment bonds 3,000,000$ 2.00 - 3.35 % 12/01/2013 12/01/2028 1,910,000$
Public Facility Authority
loan (2015A) 2,214,632 1.06 08/26/2015 08/20/2035 1,800,000
Net premiums
(discounts) on bonds 19,524
Compensated absences payable 86,154
Total OPEB liability 37,018
Total business-type activities 3,852,696$
January 1, December 31, Due Within
2019 Additions Retirements 2019 One Year
Governmental activities
General obligation bonds 5,375,000$ 6,640,000$ (415,000)$ 11,600,000$ 830,000$
Certificates of indebtedness 135,000 - (65,000) 70,000 70,000
Special assessment bonds 10,925,000 320,000 (2,045,000) 9,200,000 2,065,000
Tax abatement bonds 7,800,000 1,040,000 (450,000) 8,390,000 545,000
Add premiums on bonds 119,506 131,662 (181,981) 69,187 -
Less discounts on bonds (13,729) - 13,729 - -
Compensated absences 275,276 276,612 (246,771) 305,117 201,588
Total OPEB liability 220,074 14,554 (143,997) 90,631 -
Total governmental activities 24,836,127$ 8,422,828$ (3,534,020)$ 29,724,935$ 3,711,588$
Business-type activities
General obligation
revenue bonds 2,095,000$ -$ (185,000)$ 1,910,000$ 190,000$
PFA loans 1,903,000 - (103,000) 1,800,000 104,000
Add premiums on bonds 21,510 - (1,986) 19,524 -
Compensated absences 88,625 69,770 (72,241) 86,154 51,858
Total OPEB liability 89,889 5,945 (58,816) 37,018 -
Total business-type activities 4,198,024$ 75,715$ (421,043)$ 3,852,696$ 345,858$
44
Notes to the Financial Statements
December 31, 2019 CITY OF MONTICELLO
C. Minimum Debt Payments
Minimum annual principal and interest payments to maturity for bonds payable are as follows:
D. Conduit Debt
From time to time, the city has issued bonds or notes to provide financial
assistance to private sector entities for the acquisition and construction of housing
or commercial facilities deemed to be in the public interest. The bonds or notes
are secured by the property financed and are payable solely from payments
received on the underlying mortgage loans or leases. Upon repayment of the
bonds, ownership of the acquired facilities transfers to the private sector entity
served by the bond issuance. The city is not obligated in any manner for
repayment of the bonds or notes. Accordingly, the bonds are not reported as
liabilities in the accompanying financial statements.
As of December 31, 2019, there was one Revenue Refunding Note and two series
of Educational Facilities Revenue Notes outstanding. The original issue of the
2014 Revenue Refunding Note (Ice Arena Project) totaled $1,111,000 and
matures in 2024. The original issues of the 2017A and 2017B Educational
Facilities Revenue Notes totaled $2,225,000 and mature in 2037. These balances
have reduced through regularly scheduled payments. The outstanding balance as
of December 31, 2019 is undetermined.
E. Pay-As-You-Go Tax Increment Notes
The city, in order to spur economic development and redevelopment, has entered
into private development and redevelopment agreements to encourage
developers to construct, expand, or improve new or existing properties and
buildings or clean-up and redevelop blighted areas. These agreements may in
substance be a tax abatement but will depend on their individual circumstances.
F. Abatements
The city currently has three agreements that would be considered tax
abatements under GASB Statement 77, two of which are combined in TIF
District 1-22:
The city is authorized to create a tax increment financing plan under Minnesota
Statute 469.175. The criteria that must be met under the statute are that, in the
opinion of the municipality:
the proposed development or redevelopment would not reasonably be
expected to occur solely through private investment within the
reasonably foreseeable future; and
Year Ending
December 31, Principal Interest Principal Interest Principal Interest Principal Interest Principal Interest Principal Interest
2020 830,000$ 322,068$ 70,000$ 1,470$ 2,065,000$ 196,622$ 545,000$ 234,814$ 190,000$ 52,398$ 104,000$ 19,134$
2021 885,000 271,709 - - 1,050,000 159,825 565,000 215,773 195,000 48,597 105,000 18,028
2022 910,000 251,834 - - 1,065,000 136,850 580,000 201,373 200,000 44,405 106,000 16,912
2023 925,000 230,296 - - 890,000 116,525 590,000 186,573 205,000 39,705 107,000 15,786
2024 945,000 207,701 - - 910,000 97,875 605,000 171,472 210,000 34,375 108,000 14,648
2025 - 2029 4,635,000 676,163 - - 2,945,000 216,925 3,295,000 609,512 910,000 74,190 559,000 55,744
2030 - 2034 2,470,000 150,765 - - 275,000 8,250 2,210,000 136,970 - - 589,000 25,395
2035 - - - - - - - - - - 122,000 1,297
11,600,000$ 2,110,536$ 70,000$ 1,470$ 9,200,000$ 932,872$ 8,390,000$ 1,756,487$ 1,910,000$ 293,670$ 1,800,000$ 166,944$
Business-Type Activities
PFA Loan
Governmental Activities
General Obligation Bonds
General Obligation
General Obligation Bonds Certificate of Indebtedness Tax Abatement Bonds
Special
Assessment Bonds
Name Purpose
Amount of
taxes abated
during the
fiscal year
Outstanding
principal
balance at
year end
Date of
required
decertification
24,827$ -$ 12/31/2029
49,051$ 184,816$ 12/31/2024
1-22 Downtown
District
Redevelopment activities in
1997 Downtown and 2010
Embracing Downtown plans
1-29 Front Porch
Assoc Inc.
27 townhouse housing units;
owner-occupied
45
Notes to the Financial Statements
December 31, 2019 CITY OF MONTICELLO
the increased market value of the site that could reasonably be expected
to occur without the use of tax increment financing would be less than
the increase in the market value estimated to result from the proposed
development after subtracting the present value of the projected tax
increments for the maximum duration of the district permitted by the plan.
The requirements of this item do not apply if the district is a housing
district;
that the tax increment financing plan conforms to the general plan for the
development or redevelopment of the municipality as a whole; and
that the tax increment financing plan will afford maximum opportunity,
consistent with the sound needs of the municipality as a whole, for the
development or redevelopment of the project by private enterprise.
The city has development agreements with private developers for properties in the
city’s tax increment districts. As part of the agreements, the city has agreed to
reimburse the developers for certain costs through pay-as-you-go tax increment
notes.
These notes provide for the payment of principal equal to the developers’ costs,
plus interest at rates ranging from 5.0% to 8.5% (interest accrual commencing
upon the developer completing the project). Payments of the notes will be made
at the lesser of the scheduled note payments or the actual net tax increment
received during the period specified in the agreement. The notes, classified as
abatements, will be canceled at the end of the agreement term, whether it has
been fully repaid or not.
The outstanding principal balances as of December 31, 2019 are listed in the
previous table. These notes are not included in the city’s long-term debt, because
repayment is required only to the extent sufficient tax increments are received.
The city’s position is that this is an obligation to assign future and uncertain
revenue sources and is not actual debt in substance.
G. Arbitrage Rebate
In accordance with the provisions of Section 148(f) of the Internal Revenue Code
of 1986, as amended, bonds must satisfy certain arbitrage rebate requirements.
Positive arbitrage is the excess of (1) the amount earned on investments
purchased with bond proceeds over (2) the amount that such investments would
have earned had such investments been invested at a rate equal to the yield on
the bond issue. In order to comply with the arbitrage rebates requirements,
positive arbitrage must be paid to the U.S. treasury at the end of each five-year
anniversary date of the bond issue. As of December 31, 2019, there are no
arbitrage rebates owed.
H. Revenue Pledged
Future revenue pledged for the payment of long-term debt is as follows:
NOTE 6. DEFINED BENEFIT PENSION PLANS – STATE-WIDE
A. Plan Description
The city participates in the General Employees Retirement Fund (GERF) cost-
sharing multiple-employer defined benefit pension plan administered by the
Public Employees Retirement Association of Minnesota (PERA). PERA’s
defined benefit pension plans are established and administered in accordance
with Minnesota Statutes, Chapters 353 and 356. PERA’s defined benefit
pension plans are tax qualified plans under Section 401 (a) of the Internal
Revenue Code.
General Employees Retirement Fund (General Employees Plan)
All full-time and certain part-time employees of the city are covered by the
General Employees Plan. General Employees Plan members belong to the
Coordinated Plan. Coordinated Plan members are covered by Social Security.
B. Benefits Provided
PERA provides retirement, disability, and death benefits. Benefit provisions are
established by state statute and can only be modified by the state legislature.
Vested, terminated employees who are entitled to benefits but are not receiving
them yet are bound by the provisions in effect at the time they last terminated
their public service.
2013B G.O.
Wastewater
Treatment Bonds PFA Loan
Use of proceeds Sewage Fund Sewage Fund
Revenue pledged
Type Utility charges Utility charges
Percent of total debt service 53% 47%
Term of pledge 2013-2028 2015-2035
Remaining principal & interest 2,203,670$ 1,966,944$
Current year
Principal and interest paid 241,597$ 123,229$
Pledged revenue received 1,295,244$ 1,148,612$
Description
46
Notes to the Financial Statements
December 31, 2019 CITY OF MONTICELLO
General Employees Plan Benefits
Benefits are based on a member’s highest average salary for any five successive
years of allowable service, age, and years of credit at termination of service. Two
methods are used to compute benefits for PERA's Coordinated Plan members.
Members hired prior to July 1, 1989, receive the higher of Method 1 or Method 2
formulas. Only Method 2 is used for members hired after June 30, 1989. Under
Method 1, the accrual rate for Coordinated members is 1.2% of average salary for
each of the first 10 years of service and 1.7% of average salary for each additional
year. Under Method 2, the accrual rate for Coordinated members is 1.7% of
average salary for all years of service. For members hired prior to July 1, 1989, a
full annuity is available when age plus years of service equal 90 and normal
retirement age is 65. For members hired on or after July 1, 1989, normal retirement
age is the age for unreduced Social Security benefits capped at 66.
Annuities, disability benefits, and survivor benefits are increased effective every
January 1. Beginning January 1, 2019, the postretirement increase will be equal
to 50 % of the cost-of-living adjustment (COLA) announced by the SSA, with a
minimum increase of at least 1.0% and a maximum of 1.5%. 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. For recipients
receiving the annuity or benefit for at least one month but less than a full year as
of the June 30 before the effective date of the increase will receive a reduced
prorated increase. For members retiring on January 1, 2024, or later, the increase
will be delayed until normal retirement age (age 65 if hired prior to July 1, 1989, or
age 66 for individuals hired on or after July 1, 1989). Members retiring under Rule
of 90 are exempt from the delay to normal retirement.
C. Contributions
Minnesota Statutes Chapter 353 sets the rates for employer and employee
contributions. Contribution rates can only be modified by the state legislature.
General Employees Fund Contributions
Coordinated Plan members were required to contribute 6.50%, of their annual
covered salary in fiscal year 2019, and the city was required to contribute 7.50%
for Coordinated Plan members. The city’s contributions to the General Employees
Fund for the year ended December 31, 2019, were $308,216. The city’s
contributions were equal to the required contributions as set by state statute.
D. Pension Costs
General Employees Fund Pension Costs
At December 31, 2019, the city reported a liability of $3,123,758 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 to the fund in 2019. 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
$96,996. The net pension liability was measured as of June 30, 2019, and the
total pension liability used to calculate the net pension liability was determined
by an actuarial valuation as of that date. The city’s 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, 2018, through
June 30, 2019, relative to the total employer contributions received from all of
PERA’s participating employers. At June 30, 2019, the city’s proportionate
share was 0.0565% which was an increase of 0.0015% from its proportion
measured as of June 30, 2018.
For the year ended December 31, 2019, the city recognized pension expense
of $366,028 for its proportionate share of the General Employees Fund’s
pension expense. In addition, the city recognized an additional $7,272 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, 2019, the city reported its proportionate share of the General
Employees Plan’s deferred outflows of resources and deferred inflows of
resources related to pensions from the following sources:
$154,016 reported as deferred outflows of resources related to pensions
resulting from the city’s contributions subsequent to the measurement date will
be recognized as a reduction of the net pension liability in the year ended
December 31, 2020. Amounts reported as deferred outflows and inflows of
Deferred Outflows Deferred Inflows
of Resources of Resources
Differences between expected and
actual economic experience 85,384$ -$
Changes in actuarial assumptions - 240,149
Net collective difference between
projected and actual investment earnings - 296,002
Changes in proportion 65,602 79,165
Contributions paid to PERA subsequent
to the measurement date 154,016 -
Total 305,002$ 615,316$
47
Notes to the Financial Statements
December 31, 2019 CITY OF MONTICELLO
resources related to pensions, excluding the contributions subsequent to the
measurement date, will be recognized in pension expense as follows:
E. Actuarial Assumptions
The total pension liability in the June 30, 2019 actuarial valuation was determined
using an individual entry-age normal actuarial cost method and the following
actuarial assumptions:
Salary increases were based on a service-related table. Mortality rates for active
members, retirees, survivors, and disabilitants for all plans were based on RP
2014 tables for males or females, as appropriate, with slight adjustments to fit
PERA’s experience. Cost of living benefit increases after retirement for retirees
are assumed to be 1.25% per year for the General Employees Plan.
Actuarial assumptions used in the June 30, 2019 valuation were based on the
results of actuarial experience studies. The most recent four-year experience
study in the General Employees Plan was completed in 2019.
The following changes in actuarial assumptions and changes in plan provisions
occurred in the General Employees Plan in 2019:
The mortality projection scale was changed from MP-2017 to MP-2018.
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 $16.0
million due per year through 2031.
The State Board of Investment, which manages the investments of PERA,
prepares an analysis of the reasonableness on a regular basis of the long-term
expected rate of return using a building-block method in which best-estimate
ranges of expected future rates of return are developed for each major asset
class. These ranges are combined to produce an expected long-term rate of
return by weighting the expected future rates of return by the target asset
allocation percentages. The target allocation and best estimates of geometric
real rates of return for each major asset class are summarized in the following
table:
F. Discount Rate
The discount rate used to measure the total pension liability in 2019 was 7.50%.
The projection of cash flows used to determine the discount rate assumed that
contributions from plan members and employers will be made at the rates set in
Minnesota Statutes. Based on these assumptions, the fiduciary net position of
the General Employees Fund was projected to be available to make all projected
future benefit payments of current plan members. Therefore, the long-term
expected rate of return on pension plan investments was applied to all periods
of projected benefit payments to determine the total pension liability.
G. Pension Liability Sensitivity
The following presents the city’s proportionate share of the net pension liability
calculated using the discount rate disclosed in the preceding paragraph, as well
as what the city’s proportionate share of the net pension liability would be if it
were calculated using a discount rate 1 percentage point lower or 1 percentage
point higher than the current discount rate:
Pension
Year ended Expense
December 31, Amount
2020 (207,348)$
2021 (222,021)
2022 (39,995)
2023 5,034
(464,330)$
Inflation 2.50% per year
Active Member Payroll Growth 3.25% per year
Investment Rate of Return 7.50%
Long-Term
Target Expected Real
Allocation Rate of Return
Domestic Equity 35.5% 5.10%
Private Markets 25.0% 5.90%
Bonds 20.0% 0.75%
International Stocks 17.5% 5.90%
Cash 2.0% 0.00%
Total 100.0%
Asset Class
48
Notes to the Financial Statements
December 31, 2019 CITY OF MONTICELLO
H. Pension Plan Fiduciary Net Position
Detailed information about the General Employees Fund 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.
NOTE 7. PUBLIC EMPLOYEES DEFINED CONTRIBUTION PENSION
PLANS – STATE-WIDE
All council members of the city are covered by the Public Employees Defined
Contribution Plan (PEDCP), a multiple-employer deferred compensation plan
administered by PERA. However, only two of the five Council members choose to
participate in the plan. The PEDCP 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 5% of salary which is matched by the
elected official's employer. 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% of employer contributions and twenty-five hundredths of 1% (0.25%)
of the assets in each member's account annually.
Total contributions made by the city during fiscal year 2019 were:
NOTE 8. DEFINED BENEFIT PENSION PLAN - MONTICELLO FIRE
RELIEF ASSOCIATION
A. Plan Description
All members of the Monticello Fire Department (the Department) are covered
by a defined benefit plan administered by the Monticello Fire Relief Association
(the Association). As of December 31, 2019, the plan covered 25 active
firefighters and 5 retirees and beneficiaries. The plan is a single-employer
retirement plan that is established and administered in accordance with
Minnesota statute, chapter 69.
The Association maintains a separate Special fund to accumulate assets to fund
the retirement benefits earned by the Department’s membership. Funding for
the Association is derived from voluntary contributions from the city and 2% fire
aid from the State of Minnesota, as well as from investment income.
B. Benefits Provided
Upon approval by the Board of Trustees, lump sum retirement benefits are either
paid or deferred as follows:
Each member who is at least 50 years of age, has retired from the fire
department, has served at least 10 years of active service with such
department before retirement and has been a member of the Association in
good standing at least 10 years prior to such retirement, shall be entitled to
a lump sum service pension in the amount of $4,200 for each year of service
but not exceeding the maximum amount per year of service allowed by law
for the minimum average amount of available financing per firefighter as
prescribed by laws. A year of service may be prorated to twelve monthly
slices, if a full year of active service is not reached.
If a member of the Association shall become permanently and totally
disabled, the Association shall pay the sum of $4,200 for each year the
member was an active member of the Association. If a member who
received a disability pension subsequently recovers and returns to active
duty, the disability pension is deducted from the service pension as
approved by the Board of Trustees.
According to the bylaws of the Association and pursuant to Minnesota
Statutes, members who retire with less than 20 years of service and have
reached the age of 50 years and have completed at least 10 years of active
membership are entitled to a reduced service pension not to exceed the
amount calculated by multiplying the member’s service pension for the
completed years of service times an applicable nonforfeitable percentage.
1% Decrease 1% Increase
In Discount Discount In Discount
Rate (6.50%) Rate (7.50%) Rate (8.50%)
City's proportionate
share of the GERF
net pension liability 5,135,291$ 3,123,758$ 1,462,839$
Required
Employee Employer Employee Employer Rate
780$ 780$ 5.00% 5.00% 5.00%
Contribution Amount % of Covered Payroll
49
Notes to the Financial Statements
December 31, 2019 CITY OF MONTICELLO
During the time a member is on deferred vested pension (not yet reached age
50), they will earn interest on the deferred benefit amount at a rate determined
by the Board of Trustees, up to 5%, compounded annually. A deferred vested
member will not be eligible for disability benefits.
C. Contributions
Minnesota statutes, chapters 424 and 424A authorize pension benefits for
volunteer fire relief associations. Contributions by the city are determined as
follows:
Normal cost for next year (increase in pension benefit obligation)
Plus estimated expenses for next year and 10% of any deficits
Less anticipated income next year and 10%of any surplus
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 $122,639 in fire
state aid to the plan on behalf of the city Fire Department for the year ended
December 31, 2019, which was recorded as a revenue. Required employer
contributions are calculated annually based on statutory provisions. The city’s
statutorily-required contributions to the plan for the year ended December 31,
2019 were $122,639. The city’s contributions were equal to the required
contributions as set by state statute. The city made no voluntary contributions to
the plan. Furthermore, the members have no obligation to contribute to the plan.
D. Actuarial Assumptions
The total pension liability at December 31, 2019 was determined using the entry
age cost method and the following assumptions:
Retirement eligibility at 100% service pension at age 50 and 20 years of service,
early vested retirement at age 50 with 10 years of service vested at 60% and
increased by 4% for each additional year of service up to 20 and eligibility for
deferred service pension payable at age 50 and 20 years of service.
E. Pension Costs
At December 31, 2019, the city reported a net pension asset of $228,740 for the
FRA plan. The total pension liability used to calculate the net pension liability in
accordance with GASB 68 was determined by Robinson Associates LLC
applying an actuarial formula to specific census data certified by the fire
department as of December 31, 2019. For the year ended December 31, 2019,
the Fire Department recognized pension expense of $54,949.
At December 31, 2019, the fire department reported deferred outflows/inflows
of resources as follows:
Amounts reported as deferred outflows and inflows of resources related to
pensions will be recognized in pension expense as follows:
The discount rate was decreased in 2019 from 4.42% to 4.25%, which is
primarily due to a lower weighted average rate of return on the FRA's asset
classes of investments.
Benefit increases 2.00% per year
Cost of living increases 2.00% per year
Investment rate of return 4.25%
20 year municipal bond yield 2.74%
Deferred Deferred
Outflows Inflows
of Resources of Resources
Differences between expected and
actual economic experience 78,529$ 197,829$
Changes in actuarial assumptions 8,094 8,210
Net difference between projected
and actual investment earnings - 64,564
86,623$ 270,603$
Pension
Year ended Expense
December 31, Amount
2020 (29,799)$
2021 (27,708)
2022 (12,812)
2023 (35,021)
2024 (10,194)
Thereafter (68,446)
(183,980)$
50
Notes to the Financial Statements
December 31, 2019 CITY OF MONTICELLO
The 4.25% long-term expected rate of return on pension plan investments was
determined using a building-block method in which best estimates for expected
future real rates of return (expected returns, net of inflation) were developed for
each asset class using the plan’s target investment allocation along with long-term
return expectations by asset class. Inflation expectations were applied to derive
the nominal rate of return for the portfolio.
The target allocation and best estimates of arithmetic real rates of return for each
major asset class are summarized in the following table:
F. Changes in the Net Pension Liability (Asset)
G. Discount Rate
The discount rate used to measure the total pension liability was 4.25%. The
projection of cash flows used to determine the discount rate assumed that
contributions to the FRA 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.
H. Pension Asset Sensitivity
The following presents the city’s net pension liability (asset) for the FRA plan,
calculated using the discount rate disclosed in the preceding paragraph, as well
as what the city’s net pension liability (asset) would be if it were calculated using
a discount rate 1 percentage point lower or 1 percentage point higher than the
current discount rate:
I. Pension Plan Fiduciary Net Position
The Association issues a publicly available financial report that includes
financial statements and required supplementary information. A copy of the
report may be obtained at Monticello City Hall.
J. Other Pension Information
The following is a summary of the net pension assets and liabilities, deferred
outflows and inflows of resources, and pension expense reported for the PERA
and FRA pension plans as of the year ended December 31, 2019:
Long-term
Target Expected Real
Allocation Rate of Return
Cash 2.3% -0.02%
Mutual funds 97.7% 3.22%
100.0%
Asset Class
Total Plan Net Pension
Pension Fiduciary Liability
Liability (TPL) Net Position (Asset)
(a) (b) (a-b)
Beginning balance 12/31/18 1,322,555$ 1,236,914$ 85,641$
Changes for the year
Service cost 69,774 - 69,774
Interest on total pension liability 50,829 - 50,829
Differences between actual and expected
experience in measurement of TPL (148,892) - (148,892)
Effect on TPL of changes in assumptions
for the future
Economic assumptions 9,010 - 9,010
Demographic assumptions (240) - (240)
Contributions from employer - 122,639 (122,639)
Supplemental benefits reimbursed - 5,068 (5,068)
Net investment income - 172,359 (172,359)
Benefit payments (321,833) (321,833) -
Administrative expenses - (5,204) 5,204
Ending balance 12/31/19 981,203$ 1,209,943$ (228,740)$
1% Decrease 1% Increase
In Discount Discount In Discount
Rate (3.25%) Rate (4.25%) Rate (5.25%)
Net Pension
Liability (Asset)(168,834)$ (228,740)$ (277,958)$
Deferred Deferred
Net Pension Net Pension Outflows of Inflows of Pension
Pension Plan Asset Liability Resources Resources Expense
State-wide, mulit-
employer - PERA -$ 3,123,758$ 305,002$ 615,316$ 373,300$
Single-employer - FRA 228,740 - 86,623 270,603 54,949
228,740$ 3,123,758$ 391,625$ 885,919$ 428,249$
51
Notes to the Financial Statements
December 31, 2019 CITY OF MONTICELLO
NOTE 9. OTHER POST-EMPLOYMENT BENEFITS (OPEB) PLAN
A. Plan Description
The city provides post-employment insurance benefits to certain eligible
employees through its OPEB Plan, a single-employer defined benefit plan
administered by the city. All post-employment benefits are based on contractual
agreements with employee groups. Eligibility for these benefits is based on years
of service and/or minimum age requirements. These contractual agreements do
not include any specific contribution or funding requirements. The Retiree Health
Plan does not issue a publicly available financial report. No plan assets are
accumulated in a trust that meets the criteria in paragraph 4 of GASB Statement
No. 75.
B. Benefits Provided
All retirees of the city upon retirement have the option under state law to continue
their medical insurance coverage through the city. For members of certain
employee groups, the city pays for all or part of the eligible retiree’s premiums
for medical and/or dental insurance from the time of retirement until the
employee reaches the age of eligibility for Medicare. Benefits paid by the city
differ by bargaining unit and date of hire, with some contracts specifying a certain
dollar amount per month, and some covering premium costs as defined within
each collective bargaining agreement. Retirees not eligible for these city-paid
premium benefits must pay the full city premium rate for their coverage.
The city is legally required to include any retirees for whom it provides health
insurance coverage in the same insurance pool as its active employees until the
retiree reaches Medicare eligibility, whether the premiums are paid by the city or
the retiree. Consequently, participating retirees are considered to receive a
secondary benefit known as an “implicit rate subsidy.” This benefit relates to the
assumption that the retiree is receiving a more favorable premium rate than they
would otherwise be able to obtain if purchasing insurance on their own, due to
being included in the same pool with the city’s younger and statistically healthier
active employees.
C. Contributions
The required contribution is based on projected pay-as-you-go financing
requirements, with additional amounts to prefund benefits as determined
periodically by the city. The city’s current year required pay-as-you-go
contributions to finance the benefits described in the previous section totaled
$2,040.
D. Membership
Membership in the plan consisted of the following as of the latest actuarial
valuation:
E. Total OPEB Liability of the City
The city’s total OPEB liability of $127,649 as of year-end was measured as of
January 1, 2019, and was determined by an actuarial valuation as of that date.
F. Actuarial Assumption
The total OPEB liability was determined by an actuarial valuation as of January
1, 2019, using the following actuarial assumptions, applied to all periods
included in the measurement, unless otherwise specified:
The actuarial assumptions used in the latest valuation were based on those
used to value pension liabilities for Minnesota city employees. The state pension
plans base their assumptions on periodic experience studies. Economic
assumptions are based on input from a variety of published sources of historical
and projected future financial data. Each assumption was reviewed for
reasonableness with the source information as well as for consistency with the
other economic assumptions.
Since the plan is not funded by an irrevocable trust, the discount rate is equal to
the 20-year municipal bond yield rate of 3.80%, which was set by considering
published rate information for 20-year high quality, tax-exempt, general
obligation municipal bonds as of the measurement date. The city discount rate
used in the prior measurement date was 3.30%.
Mortality rates were based on the RP-2014 White Collar Mortality Tables with
MP-2018 Generational Improvement Scale.
Future retirees electing coverage is assumed to be 50% with 30% of those
electing family coverage.
Retirees and beneficiaries receiving benefits -
Active plan members 38
Total members 38
Discount rate 3.80%
20-year municipal bond yield 3.80%
Inflation rate 2.50%
Salary increases 3.00%
Medical trend rate 6.5% grading to 5.0% over 6 years
52
Notes to the Financial Statements
December 31, 2019 CITY OF MONTICELLO
G. Changes in the Total OPEB Liability
Assumption changes since the prior measurement date include the following:
The health care trend rates were changed to better anticipate short term
and long term medical increases.
The mortality tables were updated form the RP-2014 White Collar
Mortality Tables with MP-2016 Generational Improvement Scale to the
RP-2014 White Collar Mortality Tables with MP-2018 Generational
Improvement Scale.
The percentage of retirees electing single or family coverage was
updated to reflect that the city sponsored plan has separated single and
family premium rates, rather than a composite rate. Future retirees
electing coverage is assumed to be 50% with 30% of those electing
family coverage.
The discount rate was changed from 3.30% to 3.80%
H. Total OPEB Liability Sensitivity to Discount and Health-Care Cost
Trend Rate Changes
The following presents the total OPEB liability of the city, as well as what the city’s
total OPEB liability would be if it were calculated using a discount rate that is 1
percentage point lower or 1 percentage point higher than the current discount rate:
The following presents the total OPEB liability of the city, as well as what the
city’s total OPEB liability would be if it were calculated using healthcare cost
trend rates that are 1 percentage point lower or 1 percentage point higher than
the current healthcare cost trend rates:
I. OPEB Expense and Related Deferred Outflows of Resources and
Deferred Inflows of Resources
For the current year ended, the city recognized OPEB expense of ($8,619). As
of year-end, the city reported deferred outflows of resources and deferred
inflows of resources related to OPEB from the following sources:
Amounts reported as deferred outflows and inflows of resources related to
OPEB, excluding benefit payments after the measurement date, will be
recognized in OPEB expense as follows:
Total OPEB
Liability
Beginning balance 309,963$
Changes for the year
Service cost 10,152
Interest 10,347
Changes in assumptions (2,047)
Differences between expected and actual experience (187,489)
Benefit payments – employer financed (13,277)
(182,314)
Ending balance 127,649$
1% Decrease in Discount 1% Increase in
Discount Rate Rate Discount Rate
OPEB discount rate 2.80% 3.80% 4.80%
Total OPEB liability 137,786$ 127,649$ 118,116$
1% Decrease in Healthcare Trend 1% Increase in
Healthcare Trend Rate Rate Healthcare Trend Rate
OPEB medical trend rate 5.50% decreasing to 6.50% decreasing to 7.50% decreasing to
4.00% over 6 years 5.00% over 6 years 6.00% over 6 years
Total OPEB liability 113,864$ 127,649$ 143,810$
Deferred Deferred
Outflows Inflows
of Resources of Resources
Liability gains -$ 160,704$
Assumption changes - 1,754
Benefit payments after the measurement date 2,040 -
Total 2,040$ 162,458$
OPEB
Year Ending Expense
June 30, Amount
2020 (27,078)$
2021 (27,078)
2022 (27,078)
2023 (27,078)
2024 (27,078)
Thereafter (27,068)
(162,458)$
53
Notes to the Financial Statements
December 31, 2019 CITY OF MONTICELLO
NOTE 10. RISK MANAGEMENT AND LITIGATION
The city is exposed to various risks of losses related to torts; theft of, damage to,
and destruction of assets; errors and omissions; injuries to employees; and natural
disasters. For the past several years, the city has obtained insurance coverage
from various trusts administered by the League of Minnesota Cities. Additionally,
the city has effectively managed risk through various employee education and
prevention programs.
All risk management activities are accounted for in the appropriate fund.
Expenditures and claims are recognized when it is probable that a loss has
occurred, the amount of the loss can be reasonably estimated, and the loss
amount exceeds insurance coverage. In determining claims, events that might
create claims, but for which none have been reported, are considered.
The city attorney estimates that the amount of actual or potential claims against
the city as of December 31, 2019 will not materially affect the financial condition
of the city.
Workers compensation coverage is procured through Travelers Insurance, a
private insurance company. The city has never had to contribute any additional
funds beyond the annual standard premium and deductibles, which is $1,000 per
occurrence. The city’s annual premium reflects a base rate based on number of
employees, total employee compensation, and history of workplace injuries.
The city provides health benefit coverage to all full-time employees and certain
part-time employees who meet personnel policy set criteria. The city pays a
portion of the premium, which is set annually by council action, and is not obligated
to make any other payments.
The city also purchases property, vehicle, liability and various other insurance
coverages from the LMCIT. The standard deductible for most claims is $1,000.
State statute sets tort limits for most liability claims at $500,000 per individual and
$1,500,000 for all claimants for one incident. Annually, the council can waive the
tort limits, but has chosen not to without exception. The city periodically receives
a dividend from LMCIT and has never had to contribute additional funds beyond
premiums and deductibles.
There were no significant reductions in insurance coverages from the previous
year and there were no settlements in excess of insurance coverage in each of
the past three years.
NOTE 11. CLAIMS AND JUDGMENTS
The city participates in a number of federal and state programs that are fully or
partially funded by grants received from other governmental units. Expenditures
financed by grants are subject to audit by the appropriate grantor government.
If expenditures are disallowed due to noncompliance with grant program
regulations, the city may be required to reimburse the grantor government.
As of December 31, 2019, significant amounts of grant expenditures have not
been audited by the granting agency, but the city believes that disallowed
expenditures discovered in subsequent audits, if any, will not have a material
effect on any of the individual funds or the overall financial position of the city.
NOTE 12. CONCENTRATION OF REVENUES
Cargill Kitchen Solutions is the largest customer of water and sewage services.
The company’s water purchases account for $89,510, or 6.9 percent, of Water
Fund operating revenue; and the company’s sewage charges account for
$482,215, or 19.7 percent, of Sewage Fund operating revenue. Additionally,
Northern States Power Company’s (Xcel Energy) net tax capacity for property
taxes payable in 2019 is $16,079,435, or 54.0 percent, of the total net capacity
of $29,784,556. Accordingly, Xcel Energy’s share of the $10.310 million city
property tax levy is $5.57 million. The tax capacity on January 1, 2020, is based
on market values certified to the state on January 1, 2019. Xcel has experienced
a decrease in plant value in recent years, contributing to the decrease in the
company’s net tax capacity to $16,079,435, or 53 percent, of the $30,610,915
total tax capacity for taxes payable in 2020.
NOTE 13. SUBSEQUENT EVENTS
In 2019, the city council approved the partial early redemption of $840,000 of
the remaining 2011A General Obligation Improvement and Refunding Bonds on
February 1, 2020. These bonds had original maturity dates of February 1, 2021,
February 1, 2022, and February 1, 2023. Existing reserves in the debt service
fund were used to prepay the bonds. After the partial early redemption,
$385,000 of the 2011A Bonds will remain outstanding with maturity dates of
February 1, 2021 and February 1, 2022.
Shortly after the 2019 fiscal year-end, the worldwide spread of the novel
coronavirus (COVID-19) has caused significant volatility in the economy and
financial markets. There is significant uncertainty about the breadth and duration
of potential business disruptions related to COVID-19, and its economic impact
in the U.S. and around the world. At this time, the city is unable to determine
what effect this may have on its future financial condition and operations.
54
Notes to the Financial Statements
December 31, 2019 CITY OF MONTICELLO
NOTE 14. INTERFUND TRANSFERS
Interfund transfers for the year ended December 31, 2019 are as follows:
The following schedule reflects each fund transfer:
In addition, the governmental activities transferred $5,029,427 of capital assets
to the newly created Water Quality enterprise fund.
Transfers In Transfers Out
Governmental funds:
General 25,000$ 1,450,040$
Economic Development Authority - 230,000
Debt Service 345,000 75,000
Capital Projects 3,458,040 5,000
Nonmajor governmental 2,100,000 1,561,818
Total governmental funds 5,928,040 3,321,858
Enterprise funds:
Water - 1,533,000
Sewage - 600,000
Water Quality 1,426,818 -
Liquor - 2,100,000
Total enterprise funds 1,426,818 4,233,000
Internal service funds:
Central Equipment 200,000 -
Total 7,554,858$ 7,554,858$
Amount
General Economic
Development Authority 25,000$ (1)
Debt Service Economic
Development Authority 205,000 (2)
Capital Projects 5,000 (3)
Nonmajor governmental 135,000 (2)
Capital Projects General 1,250,040 (4)
Water 1,533,000 (4)
Sewage 600,000 (4)
Debt Service 75,000 (5)
Nonmajor governmental Liquor 2,100,000 (4)
Water Quality Nonmajor governmental 1,426,818 (6)
Central Equipment General 200,000 (4)
Total 7,554,858$
(1) Transfer for contribution to downtown improvements.
(2) Transfer for principal and interest payments on various debt issues.
(3) Transfer to establish funds for repayment of 2019A bonds.
(4) Transfer for project and equipment related funding.
(5) Transfer to close out 2010A bond sub-fund.
(6) Transfer to establish new fund.
Transfers In Transfers Out
55
Notes to the Financial Statements
December 31, 2019 CITY OF MONTICELLO
NOTE 15. FUND BALANCES
At December 31, 2019, a summary of the city’s governmental fund balance classifications are as follows:
Economic Debt
General Community Development Service Capital Nonmajor
Fund Center Authority Fund Projects Funds Total
Nonspendable
Prepaid items 135,139$ 28,619$ 42,580$ -$ -$ 829$ 207,167$
Restricted
Debt service - - - 1,821,561 - - 1,821,561
Capital improvements - - - - 2,335,310 - 2,335,310
Economic development - - 1,377,734 - - 904,757 2,282,491
Tax increment - - 1,128,160 - - - 1,128,160
Total restricted - - 2,505,894 1,821,561 2,335,310 904,757 7,567,522
Assigned
Capital improvements - - - - 12,865,091 3,361,615 16,226,706
Economic development - - 4,764,790 - - - 4,764,790
Community center operations - 210,863 - - - - 210,863
Cemetery operations - - - - - 25,246 25,246
Total assigned - 210,863 4,764,790 - 12,865,091 3,386,861 21,227,605
Unassigned 6,542,111 - - - - - 6,542,111
Total 6,677,250$ 239,482$ 7,313,264$ 1,821,561$ 15,200,401$ 4,292,447$ 35,544,405$
Special Revenue Funds
56
CITY OF MONTICELLO
Required Supplementary Information
Schedule of Employer's Share and Non-Employer Proportionate Share
of Net Pension Liability - Public Employees Retirement Association
Last Ten Fiscal Years
PERA
Fiscal
Year
Ending
June 30,
Employer's
Proportion
(Percentage) of the
Net Pension
Liability
Employer's
Proportionate
Share (Amount)
of the Net
Pension Liability
Employer's Proportionate
Share of the State of
Minnesota's Proportionate
Share of the Net Pension
Liability
Total Employer's
Proportionate
Share of the Net
Pension Liability Covered Payroll
Employer's
Proportionate
Share of the Net
Pension Liability
as a Percentage
of Covered Payroll
Plan Fiduciary Net
Position as a
Percentage of the
Total Pension
Liability
2015 0.0578% $2,995,496 $0 $2,995,496 $3,395,756 88.21% 78.2%
2016 0.0588% 4,774,268 62,387 4,836,655 3,651,024 130.77% 68.9%
2017 0.0549% 3,504,780 44,041 3,548,821 3,534,506 99.16% 75.9%
2018 0.0550% 3,051,175 100,077 3,151,252 3,697,145 82.53% 79.5%
2019 0.0565% 3,123,758 96,996 3,220,754 3,997,826 78.14% 80.2%
Note 1: Changes in Plan Provisions.
(a) 2015 changes - On January 1, 2015, the Minneapolis Employees Retirement Fund was merged into the GERF, which increased the total pension liability by
$1.1 billion and increased the fiduciary plan net position by $892 million. Upon consolidation, state and employer contributions were revised; the state’s contribution
of $6 million, which meets the special funding situation definition, was due September 2015.
(b) 2017 changes - The state's special funding contribution increased from $6 million to $16 million.
(c) 2019 changes - 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.
Note 2: Changes in Actuarial Assumptions
(a) 2015 changes - The assumed post-retirement benefit increase rate was changed from 1.00 percent per year through 2030 and 2.50 percent per year thereafter to
1.00 percent per year through 2035 and 2.50 percent per year thereafter.
(b) 2016 changes - The assumed post-retirement benefit increase rate was changed from 1.00 percent per year through 2035 and 2.50 percent per year thereafter to
1.00 percent per year for all future years. The assumed investment return and the single discount rate were both changed from 7.90 percent to 7.50 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.
(c) 2017 changes - 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 0.00 percent for active member liability, 15.00 percent for vested deferred member liability, and 3.00 percent for nonvested
deferred member liability. The assumed post-retirement benefit increase rate was changed from 1.00 percent per year for all years to 1.00 percent per year through
2044, and 2.50 percent per year thereafter.
(d) 2018 changes - The mortality projection scale ws 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.
(e) 2019 changes - The mortality projection scale was changed from MP-2017 to MP-2018.
Note 3: The city implemented GASB Statement No. 68 in fiscal 2015 (using a June 30, 2015 measurement date). This schedule is intended to present 10-year trend
information. Additional years will be added as they become available.
Note 4: For purposes of this schedule, covered payroll is defined as "pensionable wages."
General Employees Retirement Fund
57
CITY OF MONTICELLO
Required Supplementary Information
Schedule of Employer's Pension Contributions - Public Employees
Retirement Association
Last Ten Fiscal Years
Fiscal Year Ending
December 31,
Statutorily Required
Contributions
(a)
Contributions in Relation
to the Statutorily
Required Contributions
(b)
Contribution Deficiency
(Excess)
(a-b)
Covered Payroll
(c)
Contributions as a
Percentage of Covered
Payroll
(b/c)
2015 266,042$ 266,042$ -$ 3,547,217$ 7.5%
2016 267,516 267,516 - 3,566,884 7.5%
2017 269,721 269,721 - 3,596,280 7.5%
2018 287,700 287,700 - 3,835,998 7.5%
2019 308,216 308,216 - 4,109,547 7.5%
Note 1: For purposes of this schedule, covered payroll is defined as "pensionable wages."
Note 2: The city implemented GASB Statement No. 68 in fiscal 2015 using a June 30, 2015 measurement date. This schedule is intended to present 10-year trend information.
Additional years will be added as they become available.
General Employees Retirement Fund
58
CITY OF MONTICELLO
Required Supplementary Information
Schedule of Changes in the Fire Relief Association's Net Pension
Liability (Asset) and Related Ratios
Last Ten Fiscal Years
2015 2016 2017 2018 2019
Total pension liability
Service cost 77,343$ 79,730$ 66,097$ 71,325$ 69,774$
Interest 41,888 44,224 49,857 49,897 50,829
Changes in benefit terms - 90,761 67,016 74,540 -
Experience gain/(loss)- (53,156) (30,666) 94,235 (148,892)
Effect of changes in assumptions - - (10,673) - 8,770
Benefit payments, including refund of member contributions (128,101) (1,168) (164,699) (121,900) (321,833)
Net change in total pension liability (8,870) 160,391 (23,068) 168,097 (341,352)
Total pension liability - beginning 1,026,005 1,017,135 1,177,526 1,154,458 1,322,555
Total pension liability - ending (A)1,017,135$ 1,177,526$ 1,154,458$ 1,322,555$ 981,203$
Plan fiduciary net position
Contributions - State 120,027$ 123,656$ 125,764$ 130,874$ 122,639$
Contributions - Municipal - - - - -
Supplemental benefits reimbursements 2,000 - 2,000 1,000 5,068
Net investment income (17,673) 55,902 126,579 (54,150) 172,359
Benefit payments, including refund of member contributions (128,101) (1,168) (164,699) (121,900) (321,833)
Administrative expenses (3,532) (4,144) (4,331) (4,929) (5,204)
Net change in plan fiduciary net position (27,279) 174,246 85,313 (49,105) (26,971)
Plan fiduciary net position - beginning 1,053,739 1,026,460 1,200,706 1,286,019 1,236,914
Plan fiduciary net position - ending (B)1,026,460$ 1,200,706$ 1,286,019$ 1,236,914$ 1,209,943$
Net pension liability (asset) - ending (A)-(B)(9,325) (23,180) (131,561) 85,641 (228,740)
Plan fiduciary net position as a percentage of the total pension liability 100.9%102.0%111.4%93.5%123.3%
Covered payroll*N/A N/A N/A N/A N/A
Net pension liability as a percentage of covered payroll*N/A N/A N/A N/A N/A
*The Association is comprised of volunteers, therefore, there are no payroll expenditures (i.e., there are no covered payroll percentage calculations)
Note 1: Changes in Actuarial Assumptions and Benefit Terms
(a) 2016 changes - The benefit level was increased from $3,300 to $3,600 per year of service.
(b) 2017 changes - The annual turnover rate was changed from 10 percent to 1 percent. The discount rate was increased from 4.19% to 4.42%, which is primarily due to a
reduction in the portfolio's average expense load. The benefit level was increased from $3,600 to $3,900 per year of service.
(c) 2018 changes - The benefit level was increased from $3,900 to $4,200 per year of service.
(d) 2019 changes - The discount rate was decreased from 4.42% to 4.25%, which is primarily due to a lower weighted average rate of return on the FRA's asset classes of investments.
Note 2: The city implemented GASB Statement No. 68 in fiscal 2015 using a December 31, 2015 measurement date. This schedule is intended to present 10-year trend
information. Additional years will be added as they become available.
59
CITY OF MONTICELLO
Required Supplementary Information
Schedule of Employer's Pension Contributions - Monticello Fire Department
Relief Association
Last Ten Fiscal Years
Statutorily Required
Contributions
(a)
Actual Contributions
Paid
(b)
Contribution Deficiency
(Excess)
(a-b)
-$ -$ -$ 120,027$
- - - 123,656
- - - 125,764
- - - 130,874
- - - 122,639
Note 1:The Monticello Volunteer Firemen's Relief Association is comprised of volunteers; therefore there are no payroll expenditures (i.e. there are no covered payroll
percentage calculations).
Note 2:The city implemented GASB Statement No. 68 in fiscal 2015 using a December 31, 2015 measurement date. This schedule is intended to present 10-year trend
information. Additional years will be added as they become available.
2016
2017
2018
City Contributions
Non-Employer
Contribution - State 2%
Fire Aid
City Fiscal
Year Ending
December 31,
2015
2019
60
CITY OF MONTICELLO
Required Supplementary Information
Schedule of Changes in the City's Total OPEB Liability and Related Ratios
Last Ten Fiscal Years
2018 2019
Total OPEB liability
Service cost 24,158$ 10,152$
Interest 9,998 10,347
Changes in assumptions - (2,047)
Differences between expected and actual experience - (187,489)
Benefit payments (5,938) (13,277)
Net change in total OPEB liability 28,218 (182,314)
Total OPEB liability - beginning 281,745 309,963
Total OPEB liability - ending 309,963$ 127,649$
Covered payroll 3,130,628$ 2,462,725$
Net OPEB liability as a percentage of covered payroll 10%5%
Note 1: Changes in Actuarial Assumptions
(a) 2018 changes - The discount rate was decreased from 3.5% to 3.3%
(b) 2019 changes - The discount rate was increased from 3.3% to 3.8%. The health care trend rates were changed to better anticipate short term and long term medical
increases. The mortality tables were updated from the RP-2014 White Collar Mortality Tables with MP-2016 Generational Improvement Improvement Scale to the RP-2014
White Collar Mortality Tables with MP-2018 Generational Improvement Scale. The percentage of retirees electing single or family coverage was updated to reflect that the
city sponsored plan has separated single and family premium rates, rather than a composite rate. The assumption was changed that 50% of eligible retirees will elect to
continue coverage and 30% of retirees with coverage will elect family coverage.
Note 2:The city implemented GASB Statement No. 75 in fiscal 2018 using a January 1, 2018 measurement date. This schedule is intended to present 10-year
trend information. Additional years will be added as they become available.
61
CITY OF MONTICELLO
Schedule of Revenues, Expenditures and Changes in Fund Balance
Budget and Actual - General Fund
For the Year Ended December 31, 2019
101
Original and Final Variance with
Budget Actual Final Budget
Revenues
Property taxes 6,690,000$ 6,689,647$ (353)$
Franchise taxes 246,500 211,000 (35,500)
Special assessments 500 802 302
Licenses and permits 405,700 603,925 198,225
Intergovernmental 364,500 431,004 66,504
Charges for services 614,100 712,382 98,282
Fines and forfeitures 36,500 40,054 3,554
Investment earnings 80,000 228,216 148,216
Other revenues 123,200 315,966 192,766
Total revenues 8,561,000 9,232,996 671,996
Expenditures:
Current
General government
Mayor and council 58,639 57,409 (1,230)
City administration 465,631 443,963 (21,668)
City clerk 127,861 121,197 (6,664)
Finance 475,957 456,902 (19,055)
Audit 44,000 45,940 1,940
City assessing 68,000 64,554 (3,446)
Legal 38,000 41,837 3,837
Human resources 137,412 142,812 5,400
Planning and zoning 278,269 315,091 36,822
City hall 73,697 66,422 (7,275)
Prairie center building 17,970 21,225 3,255
Public safety
Law enforcement 1,457,430 1,455,727 (1,703)
Fire and rescue 420,078 477,941 57,863
Fire relief 124,000 123,640 (360)
Building inspections 415,885 324,072 (91,813)
Civil defense 3,054 8,253 5,199
Animal control 52,838 46,709 (6,129)
National Guard 14,000 13,423 (577)
(continued)
62
CITY OF MONTICELLO
Schedule of Revenues, Expenditures and Changes in Fund Balance
Budget and Actual - General Fund
For the Year Ended December 31, 2019 (Continued)
Original and Final Variance with
Budget Actual Final Budget
Expenditures (continued)
Public works
Public works administration 211,857$ 228,625$ 16,768$
Engineering 145,589 111,710 (33,879)
Public works inspecitons 111,913 90,047 (21,866)
Streets and alleys 1,086,814 920,384 (166,430)
Ice and snow removal 294,410 454,607 160,197
Shop and garage 209,692 178,063 (31,629)
Stormwater 85,850 27,650 (58,200)
Street lighting 246,500 210,948 (35,552)
Sanitation
Refuse and recycling collection 641,071 610,944 (30,127)
Transit
Bus service 5,000 - (5,000)
Recreation and culture
Senior center 105,952 102,169 (3,783)
Park operations 975,591 925,482 (50,109)
Park ballfields 26,900 19,836 (7,064)
Shade tree 90,027 61,396 (28,631)
Public arts 30,000 46,954 16,954
Library 46,113 53,592 7,479
Total expenditures 8,586,000 8,269,524 (316,476)
Excess (deficiency) of revenues over expenditures (25,000) 963,472 988,472
Other financing sources (uses)
Sale of capital assets - 29,340 29,340
Transfers in 25,000 25,000 -
Transfers out - (1,450,040) (1,450,040)
Total other financing sources (uses) 25,000 (1,395,700) (1,420,700)
Net change in fund balance - (432,228) (432,228)
Fund balance at beginning of year 7,109,478 7,109,478 -
Fund balance at end of year 7,109,478$ 6,677,250$ (432,228)$
63
CITY OF MONTICELLO
Schedule of Revenues, Expenditures and Changes in Fund Balance
Budget and Actual - Community Center Fund
For the Year Ended December 31, 2019
226
Original and Final Variance with
Budget Actual Final Budget
Revenues
Property taxes 402,000$ 402,000$ -$
Charges for services 1,576,500 1,361,002 (215,498)
Investment earnings 2,000 12,945 10,945
Other revenues 19,500 50,589 31,089
Total revenues 2,000,000 1,826,536 (173,464)
Expenditures
Current
Recreation and culture
Operations 446,454 437,134 (9,320)
Rentals 24,430 21,963 (2,467)
Aquatics 210,466 200,872 (9,594)
Concessions & guest services 199,000 199,682 682
Maintenance 735,164 727,319 (7,845)
Programming 279,486 287,584 8,098
Capital outlay
Recreation and culture
Aquatics 150,000 105,134 (44,866)
Maintenance - 214,161 214,161
Total expenditures 2,045,000 2,193,849 148,849
Net change in fund balance (45,000) (367,313) (322,313)
Fund balance at beginning of year 606,795 606,795 -
Fund balance at end of year 561,795$ 239,482$ (322,313)$
64
CITY OF MONTICELLO
Schedule of Revenues, Expenditures and Changes in Fund Balance
Budget and Actual - Economic Development Authority Fund
For the Year Ended December 31, 2019
213
Original and Final Variance with
Budget Actual Final Budget
Revenues
Property taxes 348,000$ 348,515$ 515$
Tax increments 617,344 679,925 62,581
Investment earnings 41,500 137,656 96,156
Interest on loans - 5,433 5,433
Other revenues 500 3,220 2,720
Total revenues 1,007,344 1,174,749 167,405
Expenditures
Current
Economic development
General operations 211,000 206,482 (4,518)
Land held for resale adjustment 144,000 58,619 (85,381)
Developmental activities 290,344 606,849 316,505
Total expenditures 645,344 871,950 226,606
Excess (deficiency) of revenues over expenditures 362,000 302,799 (59,201)
Other financing uses
Transfers out (200,000) (230,000) (30,000)
Net change in fund balance 162,000 72,799 (89,201)
Fund balance at beginning of year 7,240,465 7,240,465 -
Fund balance at end of year 7,402,465$ 7,313,264$ (89,201)$
65
Notes to the Required Supplementary Information
December 31, 2019 CITY OF MONTICELLO
Budgetary Information
Budgetary basis of accounting
The city follows these procedures in establishing the budgetary data reflected in
the basic financial statements:
A. Prior to September 1, the city administrator submits to the city council a
proposed operating budget for the fiscal year commencing the following
January 1. The operating budget includes proposed expenditures and the
means of financing them. The city council provides input and
adjustments. Based on the proposed budget, the city council certifies the
proposed property tax levy to the county auditor according to Minnesota
Statutes before September 30.
B. Public hearings are conducted at the city council’s chambers in the
Monticello Community Center.
C. On or before December 28, the final budget is legally enacted by city
council resolution and the final property tax levy is certified to the county
auditor.
D. Management is authorized to transfer budgeted amounts between
departments within a fund; however, any revisions that alter the total
expenditures of any fund must be approved by the city council.
E. The city has legally adopted budgets for the General Fund and all special
revenue funds. Expenditures may not legally exceed budgeted
appropriations at the total fund level. Monitoring of budgets is maintained
at the department level. All amounts over budget have been approved by
the city council through the disbursement process. The city is not legally
required to adopt an annual budget for the nonmajor special revenue
funds, the Debt Service Fund, and the Capital Projects Funds. Project-
length financial plans are adopted for the Debt Service and Capital
Projects Funds.
F. Budgets are adopted on a basis consistent with accounting principles
generally accepted in the United States of America. Budgeted amounts
are as originally adopted or amended by the city council. All annual
appropriations lapse at year-end.
Excess of expenditures over appropriations
For the year ended December 31, 2019, expenditures exceeded appropriations
in the Community Center special revenue fund by $148,849. The excess of
expenditures resulted from capital improvements budgeted in 2018, but
completed in 2019. Fund balance reserves were used to fund the expenditures.
For the year ended December 31, 2019, expenditures exceeded appropriations
in the Economic Development Authority special revenue fund by $226,606. The
excess of expenditures resulted from an unbudgeted qualifying TIF grant
awarded in 2019 for underground parking at a new downtown apartment
complex. Fund balance reserves were used to fund the expenditures.
66
NONMAJOR GOVERNMENTAL FUNDS
SPECIAL REVENUE FUNDS are used to account for revenue derived from specific taxes or other earmarked revenue sources (other than for major
capital projects) that are restricted by law or administrative action to expenditures for specified purposes.
Small Cities Development Program (SCDP) Fund - Established to account for the administration of loans to local businesses while following state
and federal guidelines.
Cemetery Fund – Established to account for the activities of cemetery operations at Riverside Cemetery.
CDBG Revitalization Fund – Established to account for funding and activities for the CDBG Revitalization Grant.
CAPITAL PROJECTS FUNDS are used to account for resources used for the acquisition and construction of capital assets by the city, except for
those financed by proprietary funds.
Storm Sewer Access Fund – This fund was established to account for fees collected from building permits for new construction and lot development.
The fees will finance major improvements to the city’s storm sewer system. This fund was closed into the new Water Quality enterprise fund created
in 2019.
City Street Reconstruction Fund – This fund was established to account for annual improvements to the city’s infrastructure based on a reconstruction
schedule.
Street Lighting Improvement Fund – This fund was established to account for activities incorporating street lighting into designated areas throughout
the city. A portion of the city’s electric franchise fee is the main revenue source for this fund.
Park and Pathway Dedication Fund – This fund was established to account for restricted fees collected from developers for park land acquisition
and for park and pathway improvements. The fund also accumulates resources from other sources used for the same purposes.
CITY OF MONTICELLO
Combining Balance Sheet
Nonmajor Governmental Funds
221 651 214 212 245 229
Small Cities City Street Street Park &
Development CDBG -Storm Sewer Recon-Lighting Pathway
Program Cemetery Revitalization Access struction Improvement Dedication Total
ASSETS
Cash and investments 718,051$ 25,246$ 392$ -$ 1,633,770$ 694,649$ 1,026,391$ 4,098,499$
Receivables
Accounts - - - - - 94,888 36,489 131,377
Prepaid items - 829 - - - - - 829
Notes receivable 186,314 - 27,500 - - - - 213,814
Total assets 904,365$ 26,075$ 27,892$ -$ 1,633,770$ 789,537$ 1,062,880$ 4,444,519$
LIABILITIES
Accounts and contracts payable -$ -$ -$ -$ -$ 1,033$ 123,539$ 124,572$
DEFERRED INFLOWS OF RESOURCES
Unavailable revenue - notes receivable - - 27,500 - - - - 27,500
FUND BALANCES
Nonspendable - 829 - - - - - 829
Restricted for economic development 904,365 - 392 - - - - 904,757
Assigned for capital improvements - - - - 1,633,770 788,504 939,341 3,361,615
Assigned for cemetery operations - 25,246 - - - - - 25,246
Total fund balances 904,365 26,075 392 - 1,633,770 788,504 939,341 4,292,447
Total liabilities, deferred inflows of
resources, and fund balances 904,365$ 26,075$ 27,892$ -$ 1,633,770$ 789,537$ 1,062,880$ 4,444,519$
Special Revenue Funds Capital Project Funds
December 31, 2019
67
CITY OF MONTICELLO
Combining Statement of Revenues, Expenditures and Changes in Fund Balance
Nonmajor Governmental Funds
For the Year Ended December 31, 2019
221 651 214 263 212 245 229
Small Cities City Street Street Park &
Development CDBG -Storm Sewer Recon-Lighting Pathway
Program Cemetery Revitalization Access struction Improvement Dedication Total
Revenues
Franchise taxes -$ -$ -$ -$ -$ 165,923$ -$ 165,923$
Special assessments - - - 35,076 - - - 35,076
Charges for services - 52,405 - 159,779 - - - 212,184
Investment earnings 25,886 1,670 12 44,631 57,409 23,783 22,330 175,721
Interest on loans 5,496 - - - - - - 5,496
Other revenues - - - - - - 66,489 66,489
Total revenues 31,382 54,075 12 239,486 57,409 189,706 88,819 660,889
Expenditures
Current
Public works - - - 171,604 - - - 171,604
Recreation and culture - 25,154 - - - - 28,016 53,170
Capital outlay
Public works - - - - - 3,787 - 3,787
Recreation and culture - 54,906 - - - - 1,917,927 1,972,833
Total expenditures - 80,060 - 171,604 - 3,787 1,945,943 2,201,394
Excess (deficiency) of
revenues over expenditures 31,382 (25,985) 12 67,882 57,409 185,919 (1,857,124) (1,540,505)
Other financing sources (uses)
Transfers in - - - - - - 2,100,000 2,100,000
Transfers out - - - (1,426,818) (135,000) - - (1,561,818)
Total other financing sources (uses)- - - (1,426,818) (135,000) - 2,100,000 538,182
Net change in fund balance 31,382 (25,985) 12 (1,358,936) (77,591) 185,919 242,876 (1,002,323)
Fund balance at begining of year 872,983 52,060 380 1,358,936 1,711,361 602,585 696,465 5,294,770
Fund balance at end of year 904,365$ 26,075$ 392$ -$ 1,633,770$ 788,504$ 939,341$ 4,292,447$
Special Revenue Funds Capital Project Funds
68
INTERNAL SERVICE FUNDS
INTERNAL SERVICE FUNDS are used to account for the financing of centralized services to city departments on a cost-reimbursement basis
(including depreciation).
Benefit Accrual Fund – This fund was established to account for resources accumulated to satisfy paid-time-off (PTO) and vacation/sick leave
liabilities of governmental fund employees.
Central Equipment Fund – This fund was established to account for equipment purchases and rental to various governmental fund departments.
Information Technology (IT) Services Fund – This fund was established to account for the accumulation and distribution of various IT related costs,
including communications, software support, capital and non-capital equipment, and software purchases.
CITY OF MONTICELLO
Combining Statement of Net Position
Internal Service Funds
December 31, 2019
704 703 702
Benefit Central IT
Accrual Equipment Services Total
ASSETS
Current assets
Cash and investments 325,887$ 746,905$ 296,580$ 1,369,372$
Accounts receivable - - 30 30
Total current assets 325,887 746,905 296,610 1,369,402
Noncurrent assets
Capital assets
Machinery and equipment - 1,937,391 58,172 1,995,563
Less accumulated depreciation - (653,519) (32,868) (686,387)
Total noncurrent assets - 1,283,872 25,304 1,309,176
TOTAL ASSETS 325,887 2,030,777 321,914 2,678,578
LIABILITIES
Current liabilities
Accounts payable - - 8,741 8,741
Accrued interest payable - 453 - 453
Bonds payable due within one year - 125,000 - 125,000
Compensated absences due within one year 201,588 - - 201,588
Total current liabilities 201,588 125,453 8,741 335,782
Noncurrent liabilities
Bonds payable, net current portion - 240,000 - 240,000
Compensated absences payable 103,529 - - 103,529
Total noncurrent liabilities 103,529 240,000 - 343,529
TOTAL LIABILITIES 305,117 365,453 8,741 679,311
NET POSITION
Net investment in capital assets - 918,872 25,304 944,176
Unrestricted 20,770 746,452 287,869 1,055,091
TOTAL NET POSITION 20,770$ 1,665,324$ 313,173$ 1,999,267$
69
CITY OF MONTICELLO
Combining Statement of Revenues, Expenses and Changes in Net Position
Internal Service Funds
For the Year Ended December 31, 2019
704 703 702
Benefit Central IT
Accrual Equipment Services Total
Operating revenues
Charges to other funds 29,841$ 298,900$ 249,200$ 577,941$
Other revenues - - 120 120
Total operating revenues 29,841 298,900 249,320 578,061
Operating expenses
Personal services 29,841 - - 29,841
Materials and supplies - - 16,147 16,147
Other services and charges - - 126,928 126,928
Depreciation - 186,026 7,468 193,494
Total operating expenses 29,841 186,026 150,543 366,410
Operating income - 112,874 98,777 211,651
Nonoperating revenues (expenses)
Investment earnings 9,587 22,537 6,964 39,088
Interest expense - (11,477) - (11,477)
Total nonoperating revenues (expenses)9,587 11,060 6,964 27,611
Income before capital contributions and transfers 9,587 123,934 105,741 239,262
Transfers in - 200,000 - 200,000
Change in net position 9,587 323,934 105,741 439,262
Net position at beginning of year 11,183 1,341,390 207,432 1,560,005
Net position at end of year 20,770$ 1,665,324$ 313,173$ 1,999,267$
70
CITY OF MONTICELLO
Combining Statement of Cash Flows
Internal Service Funds
For the Year Ended December 31, 2019
704 703 702
Benefit Central IT
Accrual Equipment Services Total
Cash flow from operating activities
Cash received from internal services provided 29,841$ 298,900$ 249,320$ 578,061$
Cash paid to suppliers for goods and services - - (153,055) (153,055)
Net cash provided by operating activities 29,841 298,900 96,265 425,006
Cash flows from noncapital financing activities
Transfers from other funds - 200,000 - 200,000
Cash flows from capital and related financing activities
Acquisition of capital assets - (295,303) - (295,303)
Principal payments on long-term debt - (120,000) - (120,000)
Interest and fiscal charges paid on long-term debt - (11,619) - (11,619)
Net cash (used) by capital and related financing activities - (426,922) - (426,922)
Cash flows from investing activities
Interest on investments 9,587 22,537 6,964 39,088
Increase in cash and cash equivalents 39,428 94,515 103,229 237,172
Cash and cash equivalents - January 1 286,459 652,390 193,351 1,132,200
Cash and cash equivalents - December 31 325,887$ 746,905$ 296,580$ 1,369,372$
Reconciliation of operating income (loss) to net cash
provided by operating activities:
Operating income -$ 112,874$ 98,777$ 211,651$
Adjustments to Reconcile Operating Income to
Net Cash Provided by Operating Activities:
Depreciation - 186,026 7,468 193,494
Changes in assets and liabilities:
Increase (decrease) in accounts payable - - (9,980) (9,980)
Increase (decrease) in compensated absences 29,841 - - 29,841
Net cash provided by operating activities 29,841$ 298,900$ 96,265$ 425,006$
71
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72
CITY OF MONTICELLO
Schedule of Revenues (Sources) and Expenditures (Uses)
General Fund
For the Year Ended December 31, 2019
2019 Variance with
2015 2016 2017 2018 Final 2019 Final
Actual Actual Actual Actual Budget Actual Budget
Revenue and other sources - summary:
Property taxes 5,906,255$ 6,204,429$ 6,384,444$ 6,634,769$ 6,690,000$ 6,689,647$ (353)$
Franchise taxes 216,500 263,900 250,000 245,000 246,500 211,000 (35,500)
Special assessments 1,330 242 2,290 206 500 802 302
Licenses and permits 461,049 668,602 600,933 504,464 405,700 603,925 198,225
Intergovernmental 354,679 389,005 429,697 428,443 364,500 431,004 66,504
Charges for services 349,601 351,702 397,570 509,464 614,100 712,382 98,282
Fines and forfeitures 42,474 30,656 36,702 45,350 36,500 40,054 3,554
Investment earnings 64,037 99,237 120,631 106,767 80,000 228,216 148,216
Other 241,721 263,783 271,078 215,330 123,200 315,966 192,766
Sales of capital assets 30,473 11,180 1,725 15,000 - 29,340 29,340
Interfund transfers - - - - 25,000 25,000 -
Total Revenues & Other Sources 7,668,119 8,282,736 8,495,070 8,704,793 8,586,000 9,287,336 701,336
Revenue and other sources - detail:
Property taxes
Property tax - current 5,840,880 6,152,157 6,277,737 6,567,152 6,670,000 6,649,999 (20,001)
Property tax - delinquent 46,786 31,704 71,029 46,482 - 17,832 17,832
Mobile home tax 15,077 16,324 17,620 18,984 16,000 18,202 2,202
Penalties and interest - taxes 3,512 4,244 18,058 2,151 4,000 3,614 (386)
Franchise taxes
Franchise taxes - electric 216,500 263,900 250,000 245,000 246,500 211,000 (35,500)
Special assessments
Assessment for services/projects 1,330 242 2,290 206 500 802 302
Licenses and permits
Liquor license 45,640 45,895 46,205 50,295 46,700 52,303 5,603
Beer license 1,013 1,013 1,151 1,988 - - -
Other business licenses & permits 2,545 5,295 6,387 6,840 4,500 7,540 3,040
Building permits 395,024 598,983 520,692 427,644 340,000 520,409 180,409
Fire sprinkler permits 215 - - - - - -
Variance/conditional use permits 2,100 - 200 - - - -
Driveway permits 75 30 360 180 400 510 110
Mobile home permits 325 180 868 720 300 2,551 2,251
Excavation permits 6,125 7,125 6,405 7,410 5,000 6,720 1,720
Right-of-way permits 2,677 3,144 4,610 3,707 2,800 4,567 1,767
Sign/banner permits 4,135 5,694 9,355 4,815 4,500 6,020 1,520
Animal licenses 1,175 1,243 4,700 865 1,500 3,305 1,805
Intergovernmental
Pera increase aid 6,741 6,741 6,822 6,849 6,800 6,741 (59)
State highway aid - operating 125,258 131,898 134,955 155,374 125,000 155,211 30,211
(continued)
73
CITY OF MONTICELLO
Schedule of Revenues (Sources) and Expenditures (Uses)
General Fund
For the Year Ended December 31, 2019 (Continued)
2019 Variance with
2015 2016 2017 2018 Final 2019 Final
Actual Actual Actual Actual Budget Actual Budget
Intergovernmental (continued)
Fire department aid - operating 120,027$ 123,656$ 133,813$ 130,874$ 124,000$ 123,640$ (360)$
Police department aid - operating 66,814 68,710 70,959 71,834 68,000 81,708 13,708
County operating grant - street/highway 19,642 55,780 26,875 27,353 20,000 26,428 6,428
County operating grant - civil defense 2,221 2,220 2,392 12,331 2,200 7,531 5,331
County operating grant - recycling 13,976 - 53,881 19,978 18,500 19,745 1,245
Operating grant -other - - - 3,850 - 10,000 10,000
Charges for services
Zoning/subdivision fees 1,050 - - - - - -
Assessment searches 11,100 12,760 10,968 10,695 8,500 13,940 5,440
Blight notice fee 350 320 - - - - -
Final plat fee 150 - - - - - -
Planning administration fee 900 5,950 7,585 5,876 1,000 24,571 23,571
NSF fee 30 30 60 30 - - -
Inspection/construction fees 826 965 1,014 764 300 907 607
Contractor licensing fee 1,075 825 320 290 - 720 720
Fire protections fees - townships 126,439 131,717 131,774 142,374 132,000 142,740 10,740
Fire emergency response fee 11,250 4,900 23,500 19,995 10,000 19,210 9,210
Fire - other fees 2,165 3,814 5,407 11,808 3,000 3,345 345
Blight mowing fees 625 450 - - - - -
Rental housing fees 45,210 49,020 49,600 45,500 47,000 42,835 (4,165)
Animal control fees 36,869 36,089 45,224 45,232 37,000 38,915 1,915
Miscellaneous pubic works - - - 8,621 - - -
Tree and brush removal charge 6,755 3,290 1,513 2,365 2,300 2,580 280
Recycling bin fee 260 - - 30 - - -
Garbage fee - taxable 90,310 89,656 80,774 169,217 360,000 381,328 21,328
Garbage surcharge - not taxable 240 300 - 90 - - -
Field/Tourney fees 4,544 5,679 14,036 14,400 8,000 13,200 5,200
Park rental fees 6,305 4,962 5,355 9,051 5,000 5,751 751
Arts activity fees - - - - - 400 400
Memorial program revenue 1,404 - - - - - -
Developer cost reimbursement 1,744 750 19,540 16,429 - 19,498 19,498
General charges for services - 225 900 6,697 - 2,442 2,442
Fines and forfeitures
Court fines 41,761 30,150 35,607 44,450 36,000 38,454 2,454
Animal impound fines 713 506 595 400 500 1,100 600
Liquor license violation - - 500 500 - 500 500
Investment earnings
Investment earnings 64,037 99,237 120,631 106,767 80,000 228,216 148,216
(continued)
74
CITY OF MONTICELLO
Schedule of Revenues (Sources) and Expenditures (Uses)
General Fund
For the Year Ended December 31, 2019 (Continued)
2019 Variance with
2015 2016 2017 2018 Final 2019 Final
Actual Actual Actual Actual Budget Actual Budget
Other
City property rental 1,600$ 1,600$ 1,600$ 1,600$ 1,600$ 1,600$ -$
Billboard land rental 2,150 21,149 21,187 22,881 21,100 23,475 2,375
Lease - Prairie Center 22,500 24,006 32,238 28,548 15,000 30,154 15,154
Lease - communication tower 22,180 24,905 26,441 29,213 25,500 26,300 800
Contributions 5,958 5,315 3,025 13,543 2,500 42,567 40,067
Sale of city property 1,831 10,650 20,948 5,724 1,000 3,096 2,096
Sale of lock boxes 1,368 1,710 855 920 800 2,400 1,600
Tree Sales 6,026 7,533 8,646 7,073 7,500 6,752 (748)
Copies 49 19 10 15 - 47 47
Refunds & reimbursables 75,416 88,860 49,603 42,297 - 21,663 21,663
Assessment fee reimbursement 23,026 24,150 19,950 21,300 20,000 16,575 (3,425)
Fire contributions 13,268 7,852 12,660 2,973 - 84,149 84,149
Insurance claims 29,926 - 46,475 - - 1,867 1,867
Other miscellaneous 36,423 46,034 27,440 39,243 28,200 55,321 27,121
Other Financing Sources
Sales of capital assets 30,473 11,180 1,725 15,000 - 29,340 29,340
Transfers from other funds - - - - 25,000 25,000 -
Total revenues and other sources 7,668,119$ 8,282,736$ 8,495,070$ 8,704,793$ 8,586,000$ 9,287,336$ 701,336$
Expenditures and other uses - summary
General government 1,467,657$ 1,495,576$ 1,622,716$ 1,656,557$ 1,785,436$ 1,777,352$ (8,084)$
Public safety 1,972,986 2,036,777 2,178,728 2,354,453 2,487,285 2,449,765 (37,520)
Public works 1,709,063 1,802,884 1,904,391 2,079,091 2,392,625 2,222,034 (170,591)
Sanitation 563,477 600,300 614,328 615,586 641,071 610,944 (30,127)
Transit 40,000 41,250 3,191 18,333 5,000 - (5,000)
Recreation and culture 962,186 1,016,025 1,119,343 1,200,388 1,274,583 1,209,429 (65,154)
General unallocated - - - - - - -
Transfers out and other uses 297,012 - 300,000 700,000 - 1,450,040 1,450,040
Total expenditures and other uses 7,012,381$ 6,992,812$ 7,742,697$ 8,624,408$ 8,586,000$ 9,719,564$ 1,133,564$
Expenditures and other uses - divisions
General government
Mayor and council 52,572$ 57,507$ 54,123$ 53,928$ 58,639$ 57,409$ (1,230)$
City administration 314,690 326,134 481,843 449,100 465,631 443,963 (21,668)
City clerk 2,979 66,031 102,422 130,948 127,861 121,197 (6,664)
Finance 377,867 393,754 425,247 430,924 475,957 456,902 (19,055)
Audit 37,798 39,273 44,745 40,531 44,000 45,940 1,940
City assessing 50,466 50,415 51,972 66,190 68,000 64,554 (3,446)
Legal 36,946 29,152 35,714 27,967 38,000 41,837 3,837
Human resources 117,249 116,522 123,206 126,581 137,412 142,812 5,400
Planning and zoning 244,976 210,173 216,007 239,045 278,269 315,091 36,822
(continued)
75
CITY OF MONTICELLO
Schedule of Revenues (Sources) and Expenditures (Uses)
General Fund
For the Year Ended December 31, 2019 (Continued)
2019 Variance with
2015 2016 2017 2018 Final 2019 Final
Actual Actual Actual Actual Budget Actual Budget
General government (continued)
Information technology services 19,872$ 692$ -$ -$ -$ -$ -$
City hall 198,915 197,006 70,235 66,111 73,697 66,422 (7,275)
Prairie center building 13,327 8,917 17,202 25,232 17,970 21,225 3,255
Public safety
Law Enforcement 1,174,439 1,212,080 1,257,194 1,362,411 1,457,430 1,455,727 (1,703)
Fire and rescue 309,970 289,010 350,891 435,068 420,078 477,941 57,863
Fire relief 120,027 123,656 125,764 132,874 124,000 123,640 (360)
Building inspections 304,858 350,304 381,260 351,511 415,885 324,072 (91,813)
Civil defense 1,500 1,234 1,933 12,332 3,054 8,253 5,199
Animal control 48,754 46,943 48,166 46,608 52,838 46,709 (6,129)
National Guard 13,438 13,550 13,520 13,649 14,000 13,423 (577)
Public works
Public works administration 124,504 126,327 120,785 196,851 211,857 228,625 16,768
Engineering 110,555 111,795 130,325 126,179 145,589 111,710 (33,879)
Public works inspecitons 32,084 62,100 62,882 83,560 111,913 90,047 (21,866)
Streets and alleys 737,836 806,098 846,575 891,117 1,086,814 920,384 (166,430)
Ice and snow 263,020 264,232 267,095 344,974 294,410 454,607 160,197
Shop and garage 185,837 171,079 200,690 168,049 209,692 178,063 (31,629)
Stormwater 26,712 29,277 30,743 23,883 85,850 27,650 (58,200)
Parking lots 2,030 - - - - - -
Street lighting 226,485 231,976 245,296 244,478 246,500 210,948 (35,552)
Sanitation
Refuse and recycling collection 563,477 600,300 614,328 615,586 641,071 610,944 (30,127)
Transit
Bus service 40,000 41,250 3,191 18,333 5,000 - (5,000)
Recreation and culture
Senior center 97,115 99,124 103,161 103,226 105,952 102,169 (3,783)
Park operations 706,934 775,738 871,121 916,335 975,591 925,482 (50,109)
Park ballfields 16,971 20,538 21,936 21,063 26,900 19,836 (7,064)
Shade tree 104,990 75,802 80,922 80,916 90,027 61,396 (28,631)
Public arts - - - 29,876 30,000 46,954 16,954
Library 36,176 44,823 42,203 48,972 46,113 53,592 7,479
Transfers out and other uses
Transfers out 297,012 - 300,000 700,000 - 1,450,040 1,450,040
Total expenditures & other uses 7,012,381$ 6,992,812$ 7,742,697$ 8,624,408$ 8,586,000$ 9,719,564$ 1,133,564$
Revenue and other sources over
expenditures and other uses 655,738$ 1,289,924$ 752,373$ 80,385$ -$ (432,228)$ (432,228)
76
CITY OF MONTICELLO
Schedule of Revenues, Expenditures and Changes in Fund Balance
Budget and Actual - Small Cities Development Program
For the Year Ended December 31, 2019
221
Orginal and Final Variance with
Budget Actual Final Budget
Revenues
Investment earnings 10,000$ 25,886$ 15,886$
Interest on loans - 5,496 5,496
Total revenues 10,000 31,382 21,382
Fund balance at beginning of year 872,983 872,983 -
Fund balance at end of year 882,983$ 904,365$ 21,382$
77
CITY OF MONTICELLO
Schedule of Revenues, Expenditures and Changes in Fund Balance
Budget and Actual - Cemetery Fund
For the Year Ended December 31, 2019
651
Orginal and Final Variance with
Budget Actual Final Budget
Revenues
Charges for services 51,500$ 52,405$ 905$
Investment earnings 500 1,670 1,170
Total revenues 52,000 54,075 2,075
Expenditures
Current
Recreation and culture
Cemetery operations 31,000 25,154 (5,846)
Capital outlay
Recreation and culture
Cemetery 60,000 54,906 (5,094)
Total expenditures 91,000 80,060 (10,940)
Net change in fund balance (39,000) (25,985) 13,015
Fund balance at beginning of year 52,060 52,060 -
Fund balance at end of year 13,060$ 26,075$ 13,015$
78
CITY OF MONTICELLO
Schedule of Revenues, Expenditures and Changes in Fund Balance
Budget and Actual - CDBG-Revitalization Fund
For the Year Ended December 31, 2019
214
Orginal and Final Variance with
Budget Actual Final Budget
Revenues
Investment earnings -$ 12$ 12$
Fund balance at beginning of year 380 380 -
Fund balance at end of year 380$ 392$ 12$
79
CITY OF MONTICELLO
Schedule of Assets, Liabilities, Deferred Inflows of Resources and Fund Balances
Economic Development Authority
December 31, 2019
TIF 6 (d)TIF 19 TIF 20 (d)TIF 22 TIF 24
EDA General GMEF TIF Future Raindance MS Shores Prairie West Downtown St. Henry's
ASSETS
Cash and investments 1,779,432$ 1,027,511$ -$ 702,384$ 52,591$ 102,943$ 245,223$ 59,543$
Receivables
Unremitted taxes 1,324 - - - - - - -
Delinquent taxes 941 - - - - - - -
Accounts 1,440 - - - - - - -
Intrafund receivable 327,796 - - - - - - -
Prepaid items 2,580 - - 40,000 - - - -
Notes receivable - 187,023 - - - - - -
Land held for resale 2,712,170 - - - - - 163,200 -
TOTAL ASSETS 4,825,683$ 1,214,534$ -$ 742,384$ 52,591$ 102,943$ 408,423$ 59,543$
LIABILITIES
Accounts and contracts payable 9,204$ -$ -$ -$ -$ -$ -$ -$
Due to other governmental units 226 - - - - - - -
Intrafund payable - - 44,497 - - - - -
Unearned revenue - - - - - - 163,200 -
Escrow deposits 3,445 - - - - - - -
Total liabilities 12,875 - 44,497 - - - 163,200 -
DEFERRED INFLOWS OF RESOURCES
Unavailable revenue - property taxes 941 - - - - - - -
FUND BALANCES
Nonspendable 2,580 - - 40,000 - - - -
Restricted - 1,214,534 - 702,384 52,591 102,943 245,223 59,543
Assigned 4,809,287 - (44,497) - - - - -
Total fund balance 4,811,867 1,214,534 (44,497) 742,384 52,591 102,943 245,223 59,543
TOTAL LIABILITIES, DEFERRED
INFLOWS OF RESOURCES,
AND FUND BALANCES 4,825,683$ 1,214,534$ -$ 742,384$ 52,591$ 102,943$ 408,423$ 59,543$
Required or Actual Decertification Date 12/9/2013 12/31/2023 12/10/2018 12/31/2024 12/31/2026
TIF District Type Redevelopment Housing Redevelopment Housing & Housing
(d) = decertified Redevelopment
(continued)
80
CITY OF MONTICELLO
Schedule of Assets, Liabilities, Deferred Inflows of Resources and Fund Balances
Economic Development Authority
December 31, 2019 (Continued)
TIF 29 TIF 30 TIF 34 TIF 39 TIF 40 GAAP Total
Front Porch CMHP Interchange Otter Creek Briggs Reconciliation EDA
ASSETS
Cash and investments 123,686$ 108,677$ 16,356$ 56$ -$ -$ 4,218,402$
Receivables
Unremitted taxes - - - - - - 1,324
Delinquent taxes - - - - - - 941
Accounts - - - - - - 1,440
Intrafund receivable - - - - - (327,796) -
Prepaid items - - - - - - 42,580
Notes receivable - - - - - - 187,023
Land held for resale - - - - - - 2,875,370
TOTAL ASSETS 123,686$ 108,677$ 16,356$ 56$ -$ (327,796)$ 7,327,080$
LIABILITIES
Accounts and contracts payable -$ -$ -$ -$ -$ -$ 9,204$
Due to other governmental units - - - - - - 226
Intrafund payable - 113,996 - 169,303 - (327,796) -
Unearned revenue - - - - - (163,200) -
Escrow deposits - - - - - - 3,445
Total liabilities - 113,996 - 169,303 - (490,996) 12,875
DEFERRED INFLOWS OF RESOURCES
Unavailable revenue - property taxes - - - - - - 941
FUND BALANCES
Nonspendable - - - - - - 42,580
Restricted 123,686 (5,319) 16,356 (169,247) - 163,200 2,505,894
Assigned - - - - - - 4,764,790
Total fund balance 123,686 (5,319) 16,356 (169,247) - 163,200 7,313,264
TOTAL LIABILITIES, DEFERRED
INFLOWS OF RESOURCES,
AND FUND BALANCES 123,686$ 108,677$ 16,356$ 56$ -$ (327,796)$ 7,327,080$
Required or Actual Decertification Date 12/31/2029 12/31/2029 12/31/2022 12/31/2021 12/31/2045
TIF District Type Housing Housing Redevelopment Economic Housing
(d) = decertified Development
81
CITY OF MONTICELLO
Schedule of Revenues, Expenditures and Other Financing Uses
Economic Development Authority
For the Year Ended December 31, 2019
TIF 6 (d)TIF 19 TIF 20 (d)TIF 22 TIF 24
EDA General GMEF TIF Future Raindance MS Shores Prairie West Downtown St. Henry's
Revenues
Property taxes 348,515$ -$ -$ -$ -$ -$ -$ -$
Tax increments - - - - 35,915 - 287,485 51,252
Investment earnings 57,026 32,325 - 22,865 4,895 3,258 6,090 3,606
Interest on loans 11,335 5,433 - - - - - -
Other revenues 3,220 - - - - - - -
Total revenues 420,096 37,758 - 22,865 40,810 3,258 293,575 54,858
Expenditures:
Current
Salary and wages 92,564 - - - - - - -
Benefits 34,565 - - - - - - -
Supplies 146 - - - - - - -
Professional services - legal 22,103 - - - - - - -
Professional services - other 25,439 - - - - - 990 -
LPV Insurance 976 - - - - - - -
Legal and general publications 246 - - - 39 - 39 39
Property taxes 3,492 - - - - - - -
Marketing 1,698 - - - - - - -
Dues and membership 5,291 - - - - - - -
Utilities 1,211 - - - - - - -
IT services 3,009 - - - - - - -
Travel and conferences 1,884 - - - - - - -
Land adjustment to market 58,619 - - - - - - -
Qualifying TIF expenditures - - - - 240,000 - - 160,000
Other expenditures 13,858 - - - - - 5,456 -
Excess increments - - - - - - 126,291 -
Interest on intrafund loans - - - - - - - -
PAYG payments to third parties - - - - - - 49,051 -
Total expenditures 265,101 - - - 240,039 - 181,827 160,039
Excess (deficiency) of revenues over (under)
expenditures 154,995 37,758 - 22,865 (199,229) 3,258 111,748 (105,181)
Other financing uses
Transfers out (25,000) - - - - - - -
Net change in fund balances 129,995 37,758 - 22,865 (199,229) 3,258 111,748 (105,181)
Fund balance at beginning of year 4,681,872 1,176,776 (44,497) 719,519 251,820 99,685 133,475 164,724
Fund balance at end of year 4,811,867$ 1,214,534$ (44,497)$ 742,384$ 52,591$ 102,943$ 245,223$ 59,543$
Required or Actual Decertification Date 12/9/2013 12/31/2023 12/10/2018 12/31/2024 12/31/2026
TIF District Type Redevelopment Housing Redevelopment Housing & Housing
(d) = decertified Redevelopment
(continued)
82
CITY OF MONTICELLO
Schedule of Revenues, Expenditures and Other Financing Uses
Economic Development Authority
For the Year Ended December 31, 2019 (Continued)
TIF 29 TIF 30 TIF 34 TIF 39 TIF 40 GAAP Total
Front Porch CMHP Interchange Otter Creek Briggs Reconciliation EDA
Revenues
Property taxes -$ -$ -$ -$ -$ -$ 348,515$
Tax increments 31,033 13,162 215,475 45,603 - - 679,925
Investment earnings 3,817 3,420 353 1 - - 137,656
Interest on loans - - - - - (11,335) 5,433
Other revenues - - - - - - 3,220
Total revenues 34,850 16,582 215,828 45,604 - (11,335) 1,174,749
Expenditures:
Current
Salary and wages - - - - - - 92,564
Benefits - - - - - - 34,565
Supplies - - - - - - 146
Professional services - legal - - - - - - 22,103
Professional services - other - - - - - - 26,429
LPV Insurance - - - - - - 976
Legal and general publications 39 39 39 - - - 480
Property taxes - - - - - - 3,492
Marketing - - - - - - 1,698
Dues and membership - - - - - - 5,291
Utilities - - - - - - 1,211
IT services - - - - - - 3,009
Travel and conferences - - - - - - 1,884
Land adjustment to market - - - - - - 58,619
Qualifying TIF expenditures - - - - - - 400,000
Other expenditures - - - - - - 19,314
Excess increments - - - - - - 126,291
Interest on intrafund loans - 3,069 - 8,266 - (11,335) -
PAYG payments to third parties 24,827 - - - - - 73,878
Total expenditures 24,866 3,108 39 8,266 - (11,335) 871,950
Excess (deficiency) of revenues over (under)
expenditures 9,984 13,474 215,789 37,338 - - 302,799
Other financing uses
Transfers out - - (205,000) - - - (230,000)
Net change in fund balances 9,984 13,474 10,789 37,338 - - 72,799
Fund balance at beginning of year 113,702 (18,793) 5,567 (206,585) - 163,200 7,240,465
Fund balance at end of year 123,686$ (5,319)$ 16,356$ (169,247)$ -$ 163,200$ 7,313,264$
Required or Actual Decertification Date 12/31/2029 12/31/2029 12/31/2022 12/31/2021 12/31/2045
TIF District Type Housing Housing Redevelopment Economic Housing
(d) = decertified Development
83
CITY OF MONTICELLO
Schedule of Assets, Liabilities, Deferred Inflows of Resources and Fund Balances
Debt Service Activities
December 31, 2019
317 312 318 319 320 321 322 323
2010A 2011A 2014A 2015B 2016A 2017A 2018A 2019A
Improvement Refunding Bonds Bonds Bonds Bonds Bonds Bonds Total
ASSETS
Cash and cash equivalents 52$ 893,344$ 121,884$ 109,612$ 364,456$ 268,472$ 57,239$ 5,011$ 1,820,070$
Receivables
Unremitted special assessments 144 - - - 2,366 353 - - 2,863
Deliquent special assessments - - - - - 443 - - 443
Deferred special assessments - 2,535,167 - 103,170 516,625 262,955 - 92,070 3,509,987
Total assets 196$ 3,428,511$ 121,884$ 212,782$ 883,447$ 532,223$ 57,239$ 97,081$ 5,333,363$
LIABILITIES
Accounts and contracts payable 196$ 196$ 196$ 196$ 196$ 196$ 196$ -$ 1,372$
DEFERRED INFLOWS OF RESOURCES
Unavailable revenue - special assessments - 2,535,167 - 103,170 516,625 263,398 - 92,070 3,510,430
FUND BALANCES
Restricted for debt service - 893,148 121,688 109,416 366,626 268,629 57,043 5,011 1,821,561
Total liabilities, deferred inflows
of resources, and fund balances 196$ 3,428,511$ 121,884$ 212,782$ 883,447$ 532,223$ 57,239$ 97,081$ 5,333,363$
General Obligation Bonds
84
CITY OF MONTICELLO
Schedule of Revenues, Expenditures and Other Financing Sources (Uses)
Debt Service Activities
For the Year Ended December 31, 2019
317 312 318 319 320 321 322 323
2010A 2011A 2014A 2015B 2016A 2017A 2018A 2019A
Improvement Refunding Bonds Bonds Bonds Bonds Bonds Bonds Total
Revenues
Property taxes -$ 150,581$ 537,244$ 200,905$ 409,134$ 429,782$ 500,000$ -$ 2,227,646$
Special assessments 36,136 52,715 - 23,514 123,176 137,796 - - 373,337
Investment earnings (8,455) 18,037 5,915 4,448 14,970 10,322 3,027 11 48,275
Total revenues 27,681 221,333 543,159 228,867 547,280 577,900 503,027 11 2,649,258
Expenditures
Debt service
Principal 870,000 380,000 360,000 160,000 445,000 365,000 275,000 - 2,855,000
Interest and fiscal charges 11,424 49,521 152,357 53,546 84,096 107,286 176,011 - 634,241
Total expenditures 881,424 429,521 512,357 213,546 529,096 472,286 451,011 - 3,489,241
Excess (deficiency) of
revenues over expenditures (853,743) (208,188) 30,802 15,321 18,184 105,614 52,016 11 (839,983)
Other financing sources (uses)
Transfers in 135,000 205,000 - - - - - 5,000 345,000
Transfers out (75,000) - - - - - - - (75,000)
Total other financing sources (uses)60,000 205,000 - - - - - 5,000 270,000
Net change in fund balance (793,743) (3,188) 30,802 15,321 18,184 105,614 52,016 5,011 (569,983)
Fund balance at begining of year 793,743 896,336 90,886 94,095 348,442 163,015 5,027 - 2,391,544
Fund balance at end of year -$ 893,148$ 121,688$ 109,416$ 366,626$ 268,629$ 57,043$ 5,011$ 1,821,561$
General Obligation Bonds
85
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86
STATISTICAL SECTION
The Statistical Section is included to provide detailed data on the physical, economic, social and political characteristics of the reporting
government. It is intended to provide the user with a broader and more complete understanding of the government and its financial affairs than is
possible from the basic financial statements and supplementary information included in the Financial Section.
Page
Financial trends
Net Position by Component - Last Ten Fiscal Years 87
Changes in Net Position - Last Ten Fiscal years 88
General Governmental Tax Revenues by Source - Last Ten Fiscal Years 90
Fund Balances of Governmental Funds - Last Ten Fiscal Years 91
Changes in Fund Balances of Governmental Funds - Last Ten Fiscal Years 92
Governmental Funds Tax Revenues by Source - Last Ten Fiscal Years 93
Revenue capacity
Tax Capacity Value and Estimated Market Value of Taxable Property - Last Ten Fiscal Years 94
Property Tax Rates - All Direct and Overlapping Governments - Last Ten Fiscal Years 95
Property Tax Levies and Collections - Last Ten Fiscal Years 96
Principal Property Taxpayers - Current Year and Nine Years Ago 97
New Construction and Bank Deposits - Last Ten Fiscal Years 98
Water Sold by Customer Type - Last Ten Fiscal Years 99
Water and Sewage Utility Rates - Last Ten Fiscal Years 100
Debt capacity
Ratios of Outstanding Debt by Type - Last Ten Fiscal Years 101
Ratios of Net General Obligation Bonded Debt Outstanding - Last Ten Fiscal Years 102
Legal Debt Margin Information - Last Ten Fiscal Years 103
Computation of Direct and Overlapping Debt - As of December 31, 2019 104
Schedule of General Obligation Revenue Bond Coverage - Last Ten Fiscal Years 105
Economic and demographic information
Demographic and Economic Statistics - Last Ten Fiscal Years 106
Principal Employers - Current Year and Nine Years Ago 107
Operating information
City Government Employees by Function/Program - Last Ten Fiscal Years 108
Operating Indicators by Function - Last Ten Fiscal Years 109
Capital Assets Statistics by Function - Last Ten Fiscal Years 111
Schedule of Cash Flows Adjusted for Additional City Funding of Fiber Optics Fund -Last Five Fiscal Years 112
CITY OF MONTICELLO
Net Position by Component
Last Ten Fiscal Years
(accrual basis of accounting)
2010 2011 2012 2013 2014 2015 2016 2017 2018 2019
Governmental activities
Net investment in
capital assets 31,901,676$ 38,242,040$ 40,525,009$ 44,268,757$ 48,253,810$ 38,099,568$ 41,077,683$ 41,535,637$ 43,517,983$ 40,008,410$
Restricted 18,337,866 16,894,936 13,061,044 18,118,070 10,453,449 12,633,770 10,569,693 11,599,951 9,649,085 8,690,172
Unrestricted 26,876,421 24,758,269 25,119,107 13,487,299 14,792,521 18,144,067 20,824,170 20,899,110 23,422,548 27,133,699
Total governmental
net position 77,115,963$ 79,895,245$ 78,705,160$ 75,874,126$ 73,499,780$ 68,877,405$ 72,471,546$ 74,034,698$ 76,589,616$ 75,832,281$
Business-type activities
Net investment in
capital assets 28,556,355$ 25,031,043$ 23,698,091$ 20,496,832$ 42,117,264$ 40,722,087$ 41,014,122$ 39,944,797$ 39,250,211$ 42,808,003$
Restricted 19,350 19,350 19,350 - - - - - - -
Unrestricted 6,363,148 6,901,353 7,642,046 6,463,638 9,121,952 8,163,982 9,052,590 11,905,058 13,261,505 14,855,640
Total business-type
net position 34,938,853$ 31,951,746$ 31,359,487$ 26,960,470$ 51,239,216$ 48,886,069$ 50,066,712$ 51,849,855$ 52,511,716$ 57,663,643$
Primary government
Net investment in
capital assets 60,458,031$ 63,273,083$ 64,223,100$ 64,765,589$ 90,371,074$ 78,821,655$ 82,091,805$ 81,480,434$ 82,768,194$ 82,816,413$
Restricted 18,357,216 16,914,286 13,080,394 18,118,070 10,453,449 12,633,770 10,569,693 11,599,951 9,649,085 8,690,172
Unrestricted 33,239,569 31,659,622 32,761,153 19,950,937 23,914,473 26,308,049 29,876,760 32,804,168 36,684,053 41,989,339
Total primary government
net position 112,054,816$ 111,846,991$ 110,064,647$ 102,834,596$ 124,738,996$ 117,763,474$ 122,538,258$ 125,884,553$ 129,101,332$ 133,495,924$
Note 1: In fiscal years 2012 and 2013, the city had a change in accounting principle, a change in fund structure, and prior period adjustments. In addition, the city implemented GASB Statement No. 68 and
GASB Statement No. 71 in fiscal year 2015, and GASB Statement No. 75 in fiscal year 2018. Prior years have not been adjusted to reflect these changes.
$-
$20
$40
$60
$80
$100
2010 2011 2012 2013 2014 2015 2016 2017 2018 2019MillionsPrimary Government Net Position
Net investment in
capital assets
Restricted net
position
Unrestricted net
position
87
CITY OF MONTICELLO
Changes in Net Position
Last Ten Fiscal Years
(accrual basis of accounting)
Expenses 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019
Governmental activities
General government 2,065,463$ 2,111,710$ 2,103,737$ 1,623,727$ 1,488,243$ 1,447,725$ 1,694,111$ 1,656,666$ 1,614,613$ 1,927,752$
Public safety 1,766,712 1,788,595 1,819,378 1,884,981 1,880,193 1,960,009 2,187,363 2,208,971 2,377,661 2,406,748
Public works 3,579,291 4,838,544 5,045,729 5,163,461 5,223,345 5,312,612 5,480,074 5,292,743 5,548,199 5,765,576
Sanitation 534,903 495,693 500,037 487,268 517,956 563,477 600,300 614,328 615,586 610,944
Transit - - - - 10,000 40,000 41,250 3,191 18,333 -
Recreation and culture 2,636,088 1,753,197 2,719,730 2,875,260 2,882,127 3,524,979 3,998,945 3,521,756 3,460,887 3,636,958
Economic development 2,647,687 1,199,936 803,594 1,005,813 1,084,620 1,547,875 756,620 488,380 1,206,067 872,984
Interest and fiscal charges 1,464,012 1,248,716 1,298,869 235,265 649,854 735,753 565,774 514,558 617,344 752,595
Total governmental activities 14,694,156 13,436,391 14,291,074 13,275,775 13,736,338 15,132,430 15,324,437 14,300,593 15,458,690 15,973,557
Business-type activities
Water utility 936,718 1,167,572 1,118,789 1,009,600 1,084,882 1,102,610 1,168,473 1,157,506 1,235,055 1,216,446
Sewage utility 2,495,976 2,340,555 2,480,657 2,466,660 2,762,357 2,661,990 2,618,887 2,708,053 2,932,413 2,889,438
Liquor 3,940,458 4,161,212 4,302,055 4,457,207 4,569,673 4,768,218 4,873,033 5,104,937 5,394,968 5,577,481
Fiber optics 3,815,377 5,702,480 5,228,428 5,240,871 2,919,170 2,536,461 2,483,262 2,252,287 2,276,015 1,990,052
Deputy registrar - - - 293,531 300,236 313,968 345,492 390,658 421,662 458,695
Total business-type activities 11,188,529 13,371,819 13,129,929 13,467,869 11,636,318 11,383,247 11,489,147 11,613,441 12,260,113 12,132,112
Total primary government expenses 25,882,685$ 26,808,210$ 27,421,003$ 26,743,644$ 25,372,656$ 26,515,677$ 26,813,584$ 25,914,034$ 27,718,803$ 28,105,669$
Program Revenues
Governmental activities
Charges for services
General government 491,304$ 521,182$ 619,992$ 147,244$ 180,145$ 214,087$ 274,309$ 239,460$ 207,802$ 232,336$
Public safety 96,293 202,237 179,540 163,366 164,616 320,158 894,311 851,307 780,236 921,916
Public works 1,556,098 508,077 383,066 544,404 371,671 521,697 527,425 283,241 217,675 373,581
Sanitation 165,387 52,304 53,077 16,653 48,385 104,786 89,956 80,774 169,337 381,328
Recreation and culture 1,153,113 1,240,970 1,150,273 1,307,149 1,331,581 1,488,197 1,437,659 1,493,651 1,630,915 1,602,473
Economic development - - - - - 14,653 301,232 13,846 2,832 14,149
Operating grants and contributions 424,845 253,127 252,784 293,710 295,828 355,041 389,005 429,697 428,443 431,004
Capital grants and contributions 4,124,271 2,083,511 1,841,915 1,079,738 1,774,628 2,667,710 3,297,265 1,996,441 2,044,698 1,024,891
Total governmental activities
program revenues 8,011,311 4,861,408 4,480,647 3,552,264 4,166,854 5,686,329 7,211,162 5,388,417 5,481,938 4,981,678
Business-type activities
Charges for services
Water utility 828,635 1,078,133 1,304,923 1,214,570 1,117,226 1,126,718 1,172,258 1,415,441 1,432,194 1,300,191
Sewage utility 1,470,537 1,712,058 1,850,919 1,981,491 2,081,660 2,083,122 2,223,252 2,472,774 2,581,833 2,443,856
Water quality - - - - - - - - - 61,757
Liquor 4,477,651 4,653,384 4,854,798 5,085,924 5,166,066 5,493,925 5,450,630 5,755,166 6,090,981 6,377,457
Fiber optics 456,820 1,610,258 1,747,587 1,606,720 1,761,978 1,642,403 1,739,566 1,757,134 1,736,243 1,795,435
Deputy registrar - - - 456,285 497,798 535,931 562,891 594,777 694,263 953,855
Capital grants and contributions - - - - 488,628 1,454,980 2,000,456 699,901 925,195 1,646,123
Total business-type activities
program revenues 7,233,643 9,053,833 9,758,227 10,344,990 11,113,356 12,337,079 13,149,053 12,695,193 13,460,709 14,578,674
Total primary government
program revenues 15,244,954$ 13,915,241$ 14,238,874$ 13,897,254$ 15,280,210$ 18,023,408$ 20,360,215$ 18,083,610$ 18,942,647$ 19,560,352$
(continued)
88
CITY OF MONTICELLO
Changes in Net Position
Last Ten Fiscal Years
(accrual basis of accounting)
2010 2011 2012 2013 2014 2015 2016 2017 2018 2019
Net (expense)/revenue
Governmental activities (6,682,845)$ (8,574,983)$ (9,810,427)$ (9,723,511)$ (9,569,484)$ (9,446,101)$ (8,113,275)$ (8,912,176)$ (9,976,752)$ (10,991,879)$
Business-type activities (3,954,886) (4,317,986) (3,371,702) (3,122,879) (522,962) 953,832 1,659,906 1,081,752 1,200,596 2,446,562
Total primary government net expense (10,637,731)$ (12,892,969)$ (13,182,129)$ (12,846,390)$ (10,092,446)$ (8,492,269)$ (6,453,369)$ (7,830,424)$ (8,776,156)$ (8,545,317)$
General Revenues and Other
Changes in Net Position
Governmental activities
Taxes
Property taxes 7,105,319$ 7,406,358$ 7,722,214$ 7,961,229$ 8,393,374$ 8,683,585$ 9,270,592$ 9,560,482$ 9,972,166$ 10,375,714$
Tax increment 1,155,386 1,044,791 1,024,134 965,935 826,363 727,617 668,352 648,031 638,278 679,925
Franchise taxes 371,258 341,362 339,518 320,640 357,409 333,484 412,217 436,248 386,622 432,934
Unrestricted grants and
contributions 37,665 19,359 38,618 65,228 27,502 - - - - -
Investment earnings 859,583 1,467,780 767,722 (189,128) 784,347 278,465 375,614 379,107 364,364 969,216
Other - - 11,575 3,885 217,643 30,473 11,180 - - -
Gain on sale of capital assets 442,091 354,501 540,272 489,782 - - - 1,725 15,000 -
Transfers (5,774,257) 713,655 (2,420,489) 278,500 (3,411,500) 2,301,045 969,461 (550,265) 1,000,000 (2,223,245)
Total governmental activities 4,197,045 11,347,806 8,023,564 9,896,071 7,195,138 12,354,669 11,707,416 10,475,328 12,376,430 10,234,544
Business-type activities
Investment earnings 236,131 495,484 264,589 (117,175) 399,757 108,191 128,080 151,126 162,003 482,120
Miscellaneous 125,326 1,555,509 100,687 65,468 - 88,157 5,218 - 379,246 -
Gain on extinguishment of debt - - - - 20,990,451 - - - - -
Contribution of land to County - - - - - (5,511,547) - - - -
Transfer of operations - - - - - - 356,900 - - -
Transfers 5,774,257 (713,655) 2,420,489 (278,500) 3,411,500 (2,301,045) (969,461) 550,265 (1,000,000) 2,223,245
Total business-type activities 6,135,714 1,337,338 2,785,765 (330,207) 24,801,708 (7,616,244) (479,263) 701,391 (458,751) 2,705,365
Total primary government 10,332,759$ 12,685,144$ 10,809,329$ 9,565,864$ 31,996,846$ 4,738,425$ 11,228,153$ 11,176,719$ 11,917,679$ 12,939,909$
Changes in Net Position
Governmental activities (2,485,800)$ 2,772,823$ (1,786,863)$ 172,560$ (2,374,346)$ 2,908,568$ 3,594,141$ 1,563,152$ 2,399,678$ (757,335)$
Business-type activities 2,180,828 (2,980,648) (585,937) (3,453,086) 24,278,746 (6,662,412) 1,180,643 1,783,143 741,845 5,151,927
Total primary government (304,972)$ (207,825)$ (2,372,800)$ (3,280,526)$ 21,904,400$ (3,753,844)$ 4,774,784$ 3,346,295$ 3,141,523$ 4,394,592$
Note 1: The city made a fund structure change for the period ending December 31, 2013. Prior year data has not been restated as a result of this change.
Note 2: The city implemented GASB Statement No. 68 and GASB Statement No. 71 in fiscal year 2015, and GASB Statement No. 75 in fiscal year 2018. Prior years have not been adjusted to reflect these changes.
Note 3: The city created a new Water Quality enterprise fund in 2019. As part of creating the fund, all balances of the Storm Water Access capital projects fund were transferred to this fund.
89
CITY OF MONTICELLO
General Governmental Tax Revenues by Source
Last Ten Fiscal Years
(accrual basis of accounting)
Property Tax Franchise
Year Tax Increment Tax Total
2010 7,105,319$ 1,155,386$ 371,258$ 8,631,963$
2011 7,406,358 1,044,791 341,362 8,792,511
2012 7,722,214 1,024,134 339,518 9,085,866
2013 7,961,229 965,935 320,640 9,247,804
2014 8,393,374 826,363 357,409 9,577,146
2015 8,683,585 727,617 333,484 9,744,686
2016 9,270,592 668,352 412,217 10,351,161
2017 9,560,482 648,031 436,248 10,644,761
2018 9,972,166 638,278 386,622 10,997,066
2019 10,375,714 679,925 432,934 11,488,573
Change
2010-2019 46.0%-41.2%16.6%33.1%
Source: Finance Department
$-
$2
$4
$6
$8
$10
$12
2010 2011 2012 2013 2014 2015 2016 2017 2018 2019MillionsTax Revenues by Source
Property Tax
Tax Increment
Franchise Tax
90
CITY OF MONTICELLO
Fund Balances of Governmental Funds
Last Ten Fiscal Years
(modified accrual basis of accounting)
2010 2011 2012 2013 2014 2015 2016 2017 2018 2019
General Fund
Reserved 336,286$ -$ -$ -$ -$ -$ -$ -$ -$ -$
Unreserved 4,644,748 - - - - - - - - -
Nonspendable - 386,616 342,380 258,100 126,327 113,302 134,245 110,869 124,650 135,139
Committed - 3,374,200 - - - - - - - -
Unassigned - 649,821 3,136,127 3,656,463 4,204,731 4,873,494 6,142,475 6,918,224 6,984,828 6,542,111
Total general fund 4,981,034$ 4,410,637$ 3,478,507$ 3,914,563$ 4,331,058$ 4,986,796$ 6,276,720$ 7,029,093$ 7,109,478$ 6,677,250$
All other governmental funds
Reserved 7,884,431$ -$ -$ -$ -$ -$ -$ -$ -$ -$
Unreserved
Special revenue 18,324,689 - - - - - - - - -
Capital projects (1,532,220) - - - - - - - - -
Nonspendable - 1,299,057 197,123 1,822,926 1,815,087 4,259,743 3,690,330 23,488 47,614 72,028
Restricted - 22,140,662 21,480,938 10,928,985 10,453,449 8,619,905 6,987,234 7,924,461 5,867,997 7,567,522
Committed - 2,662,124 - - - - - - - -
Assigned - 9,138,626 8,655,488 6,485,727 7,321,744 11,109,806 13,320,718 16,910,080 17,145,463 21,227,605
Unassigned
Special revenue - (141,890) - - - - - - - -
Capital projects - (1,435,666) - - - - - - - -
Total all other
governmental funds 24,676,900$ 33,662,913$ 30,333,549$ 19,237,638$ 19,590,280$ 23,989,454$ 23,998,282$ 24,858,029$ 23,061,074$ 28,867,155$
Note 1: The City made a fund structure change for the period ending December 31, 2013. Prior year data has not been restated as a result of this change.
Note 2: The city implemented GASB 54 for the financial reporting period ending December 31, 2011. Prior years have not been restated as a result of this change.
91
CITY OF MONTICELLO
Changes in Fund Balances of Governmental Funds
Last Ten Fiscal Years
(modified accrual basis of accounting)
2010 2011 2012 2013 2014 2015 2016 2017 2018 2019
Revenues
Property taxes 7,319,154$ 7,294,635$ 8,234,086$ 7,985,695$ 8,407,627$ 8,638,401$ 9,295,983$ 9,593,445$ 9,967,550$ 10,375,468$
Tax increments 1,155,386 1,044,791 1,024,134 965,935 826,363 727,617 668,352 648,031 638,278 679,925
Franchise taxes 371,258 341,362 339,518 320,640 357,409 333,484 412,217 436,248 386,622 432,934
Special assessments 1,465,264 1,856,134 1,902,871 2,065,944 1,912,932 3,318,901 984,390 946,669 700,190 712,681
Licenses and permits 217,184 249,999 275,699 331,711 378,810 461,049 668,602 600,933 504,464 603,925
Intergovernmental 1,620,771 1,434,420 540,475 1,264,781 732,366 1,520,239 2,041,362 1,340,094 911,477 896,638
Charges for services 2,890,006 2,239,584 2,076,834 1,846,919 1,722,974 2,063,520 2,222,475 1,909,357 2,098,362 2,297,568
Fines and forfeitures 205 85 14,338 1,725 1,900 42,474 30,656 36,702 45,350 40,054
Investment earnings 859,583 1,467,780 767,722 (183,242) 738,956 261,856 357,112 364,786 351,620 930,128
Interest on loans - - - - - - - - - 10,929
Other revenues 643,873 603,019 753,832 700,776 413,113 475,170 589,394 335,530 302,469 436,264
Total revenues 16,542,684 16,531,809 15,929,509 15,300,884 15,492,450 17,842,711 17,270,543 16,211,795 15,906,382 17,416,514
Expenditures
General government 1,997,458 2,039,270 2,023,674 1,576,653 1,450,930 1,465,458 1,489,892 1,617,680 1,656,557 1,777,352
Public safety 1,684,296 1,728,409 1,735,579 1,805,434 1,845,073 1,972,986 2,036,777 2,178,728 2,354,453 2,449,765
Public works 1,562,155 1,675,222 1,703,849 1,707,576 1,793,162 1,734,562 1,941,750 2,009,481 2,079,305 2,393,638
Sanitation 534,903 495,693 500,037 505,996 517,956 563,477 600,300 614,328 615,586 610,944
Transit - - - - 10,000 40,000 41,250 3,191 18,333 -
Recreation and culture 2,164,534 2,419,369 2,272,595 2,472,987 2,386,832 2,622,991 2,756,372 2,940,313 3,034,496 3,137,153
Economic development 2,647,687 1,198,449 800,540 1,011,961 1,084,620 1,237,107 530,746 486,706 1,210,053 871,950
Capital outlay 4,138,459 4,067,251 2,829,049 1,357,254 2,220,883 2,238,365 6,235,029 5,430,272 9,708,481 7,941,452
Debt service
Principal 5,001,000 4,860,000 5,174,500 5,290,750 5,411,000 5,028,000 5,681,653 3,921,000 2,285,000 2,855,000
Interest and fiscal charges 1,553,661 1,383,095 1,290,430 930,982 658,983 570,753 529,116 470,508 522,220 634,241
Bond issuance costs - - - - - 71,358 107,050 93,300 94,350 138,350
Total expenditures 21,284,153 19,866,758 18,330,253 16,659,593 17,379,439 17,545,057 21,949,935 19,765,507 23,578,834 22,809,845
Excess of revenues
over (under) expenditures (4,741,469) (3,334,949) (2,400,744) (1,358,709) (1,886,989) 297,654 (4,679,392) (3,553,712) (7,672,452) (5,393,331)
Other financing sources (uses)
Long-term debt issued 3,255,000 10,735,000 - - 6,080,000 2,605,000 4,900,000 5,000,000 5,000,000 8,000,000
Premium (discount) on debt issued (19,530) 301,910 - - (12,374) 46,898 97,503 78,814 40,882 131,662
Refunded bonds redeemed (865,000) - - (10,690,000) - - - - - -
Sale of capital assets 67,569 - 11,575 12,428 - 30,473 11,180 1,725 15,000 29,340
Transfers in 4,687,126 5,710,819 9,990,120 6,906,770 4,914,385 4,261,817 2,192,636 1,029,628 2,082,845 5,928,040
Transfers out (4,431,158) (4,997,164) (10,732,901) (7,158,933) (8,325,885) (2,186,930) (1,223,175) (944,335) (1,182,845) (3,321,858)
Total other financing sources (uses)2,694,007 11,750,565 (731,206) (10,929,735) 2,656,126 4,757,258 5,978,144 5,165,832 5,955,882 10,767,184
Net change in fund balances (2,047,462)$ 8,415,616$ (3,131,950)$ (12,288,444)$ 769,137$ 5,054,912$ 1,298,752$ 1,612,120$ (1,716,570)$ 5,373,853$
Debt service as percentage
of noncapital expenditures 38.2% 42.6% 41.4% 41.7% 40.0% 35.5% 38.7% 31.0% 20.7% 24.3%
Note: The city made a fund structure change for the period ending December 31, 2013. Prior year data has not been modified to reflect this change.
92
CITY OF MONTICELLO
Governmental Funds Tax Revenues by Source
Last Ten Fiscal Years
(modified accrual basis of accounting)
Property Tax Franchise
Year Tax Increment Tax Total
2010 7,319,154$ 1,155,386$ 371,258$ 8,845,798$
2011 7,294,635 1,044,791 341,362 8,680,788
2012 8,234,086 1,024,134 339,518 9,597,738
2013 7,985,695 965,935 320,640 9,272,270
2014 8,407,627 826,363 357,409 9,591,399
2015 8,638,401 727,617 333,484 9,699,502
2016 9,295,983 668,352 412,217 10,376,552
2017 9,593,445 648,031 436,248 10,677,724
2018 9,967,550 638,278 386,622 10,992,450
2019 10,375,468 679,925 432,934 11,488,327
Change
2010-2019 41.8%-41.2%16.6%29.9%
Source: Finance Department
$-
$2
$4
$6
$8
$10
$12
2010 2011 2012 2013 2014 2015 2016 2017 2018 2019MillionsTax Revenues by Source
Property Tax
Tax Increment
Franchise Tax
93
CITY OF MONTICELLO
Tax Capacity Value and Estimated Market Value of Taxable Property
Last Ten Fiscal Years
Total Net Tax
Taxable Net Capacity as a
Residential % of Commercial % of Personal % of Ag/Misc % of Tax Capacity % of Total Direct Total Percentage of
Year Property Total Property Total Property Total Property Total Value Total Tax Rate Market Value Market Value
2010 6,165,704$ 35.4%10,793,836$ 62.0%189,563$ 1.1%251,177$ 1.4% 17,400,280$ 100.0%45.822 1,188,222,100$ 1.5%
2011 5,307,260 31.9%10,897,898 65.5%194,825 1.2%229,016 1.4% 16,628,999 100.0%46.729 1,106,541,400 1.5%
2012 4,611,403 23.6%14,538,165 74.3%235,633 1.2%194,492 1.0% 19,579,693 100.0%49.773 1,219,719,700 1.6%
2013 4,824,117 25.4%13,793,916 72.5%239,129 1.3%164,609 0.9% 19,021,771 100.0%42.234 1,201,075,800 1.6%
2014 5,408,138 21.9%18,818,097 76.4%235,713 1.0%184,750 0.7% 24,646,698 100.0%44.709 1,513,570,400 1.6%
2015 5,861,759 22.1%20,316,219 76.4%238,732 0.9%164,516 0.6% 26,581,226 100.0%35.737 1,712,125,200 1.6%
2016 6,505,649 23.0%21,386,874 75.6%248,668 0.9%166,437 0.6% 28,307,628 100.0%34.471 1,828,437,600 1.5%
2017 7,325,880 24.2%22,510,588 74.4%272,344 0.9%141,596 0.5% 30,250,408 100.0%33.172 1,962,020,100 1.5%
2018 8,086,159 27.1%21,262,918 71.4%286,580 1.0%148,899 0.5% 29,784,556 100.0%32.333 1,974,154,400 1.5%
2019 8,924,604 29.2%21,267,629 69.5%274,720 0.9%143,962 0.5% 30,610,915 100.0%34.262 2,054,313,700 1.5%
Note 1: The fiscal year is for the values in the year levied for taxes collectible in the following year.
Note 2: Tax exempt property values are not included in total taxable net tax capacity value.
Source: Wright County Certificate of Taxes and Taxable Properties.
Real Property
$-
$5
$10
$15
$20
$25
$30
2010 2011 2012 2013 2014 2015 2016 2017 2018 2019MillionsTotal Taxable Net Tax Capacity Value
(Excludes Personal and Ag/Misc Property)
Residential
Commercial
94
CITY OF MONTICELLO
Property Tax Rates - All Direct and Overlapping Governments
Last Ten Fiscal Years
Monticello Total (1)
City Wright School Special Direct and
Year of Monticello County District #882 Districts Overlapping
2010 45.82 35.82 24.95 1.75 108.34
2011 46.73 39.31 27.03 1.50 114.57
2012 49.77 43.45 28.26 1.24 122.72
2013 42.23 44.29 26.23 0.61 113.36
2014 44.71 43.45 28.27 -116.43
2015 35.74 40.59 22.88 -99.21
2016 34.47 39.97 20.86 1.08 96.38
2017 33.17 39.60 16.24 1.02 90.03
2018 32.33 39.95 15.62 1.09 88.99
2019 34.26 44.27 16.97 1.20 96.70
Note 1:
Source:Wright County
Overlapping Taxing Districts
Information reflects total tax rates levied by each entity. Tax rates are expressed in terms of “net tax capacity.” A property’s tax capacity is determined by multiplying its
taxable market value by a state determined class rate. Class rates vary by property type and change periodically based on state legislation. Components of the direct rate are
not readily available.
0
20
40
60
2010 2011 2012 2013 2014 2015 2016 2017 2018 2019Rate %Property Tax Rates
For the three highest taxing authorities
Wright
District
#882
City
95
CITY OF MONTICELLO
Property Tax Levies and Collections
Last Ten Fiscal Years
PROPERTY TAXES
Total Tax Collections in Abatements
Fiscal Levy for Tax Net % of Subsequent % of and % of
Year Fiscal Year Credits Levy Amount Net Levy Years Amount Net Levy Adjustments Amount Net Levy
2010 7,648,269$ 278,930$ 7,369,339$ 7,155,141$ 97.1% 187,503$ 7,342,644$ 99.6% (26,695)$ -$ 0.0%
2011 7,677,351 293,075 7,384,276 7,178,807 97.2% 185,763 7,364,570 99.7% (19,706) - 0.0%
2012 7,850,042 - 7,850,042 7,759,174 98.8% 33,453 7,792,627 99.3% (57,415) - 0.0%
2013 7,900,724 - 7,900,724 7,827,356 99.1% 40,255 7,867,611 99.6% (33,113) - 0.0%
2014 8,151,086 - 8,151,086 8,109,373 99.5% 30,264 8,139,637 99.9% (7,013) 4,436 0.1%
2015 8,535,565 - 8,535,565 8,498,745 99.6% 22,697 8,521,442 99.8% (12,524) 1,599 0.0%
2016 9,205,700 - 9,205,700 9,177,787 99.7% 22,805 9,200,592 99.9% (3,733) 1,375 0.0%
2017 9,430,000 - 9,430,000 9,416,303 99.9% 10,813 9,427,116 100.0% (1,546) 1,338 0.0%
2018 9,870,000 - 9,870,000 9,850,163 99.8% 9,240 9,859,403 99.9% (5,488) 5,109 0.1%
2019 10,310,000 - 10,310,000 10,289,339 99.8% - 10,289,339 99.8% (146) 20,515 0.2%
TAX INCREMENTS
Total Tax Collections in Abatements
Fiscal Levy for Tax Net % of Subsequent % of and % of
Year Fiscal Year Credits Levy Amount Net Levy Years Amount Net Levy Adjustments Amount Net Levy
2010 1,193,383$ -$ 1,193,383$ 1,144,243$ 95.9% 36,309$ 1,180,552$ 98.9%(12,831)$ -$ 0.0%
2011 1,071,686 - 1,071,686 1,044,309 97.4% 25,742 1,070,051 99.8%(1,635) - 0.0%
2012 955,039 - 955,039 953,400 99.8% - 953,400 99.8%(1,639) - 0.0%
2013 971,745 - 971,745 970,071 99.8% - 970,071 99.8%(1,674) - 0.0%
2014 869,425 - 869,425 869,339 100.0% 60 869,399 100.0%(26) - 0.0%
2015 729,130 - 729,130 727,558 99.8% - 727,558 99.8%(1,572) - 0.0%
2016 668,351 - 668,351 668,351 100.0% - 668,351 100.0%- - 0.0%
2017 650,375 - 650,375 648,033 99.6% - 648,033 99.6%(2,342) - 0.0%
2018 640,584 - 640,584 638,278 99.6% - 638,278 99.6%(2,306) - 0.0%
2019 679,925 - 679,925 679,925 100.0% - 679,925 100.0%- - 0.0%
Source: Wright County
Year of the Net Levy to Date Total Uncollected
Collected within the Total Collections
Year of the Net Levy to Date Total Uncollected
Collected within the Total Collections
96
CITY OF MONTICELLO
Principal Property Taxpayers
Current Year and Nine Years Ago
Percentage of Percentage of
(1)Taxable Net Tax Total Net Tax Taxable Net Tax Total Net Tax
Taxpayer Market Value Capacity Value Rank Capacity Value Market Value Capacity Value Rank Capacity Value
Xcel Energy (Northern States)804,626,600$ 16,079,435$ 1 54.0%264,106,700$ 5,275,739$ 1 29.4%
IRET Properties 24,812,800 310,160 2 1.0%
CentraCare Medical Center (New River)12,808,500 255,380 3 0.9%9,706,800 193,386 4 1.1%
Mills Fleet Farm 12,868,000 254,360 4 0.9%
Target Corporation 10,000,000 199,250 5 0.7%13,161,600 262,482 2 1.5%
Walmart Real Estate Bus Trust 9,648,000 192,210 6 0.6%12,954,100 255,996 3 1.4%
Home Depot USA, Inc.6,501,500 129,280 7 0.4%8,263,000 164,510 5 0.9%
Clear Creek Land Company LLC 6,244,400 124,138 8 0.4%
Spirit Master Funding (Muller Theatres)5,532,300 109,515 9 0.4%6,419,200 127,226 10 0.7%
AX TC Retail, LP 5,259,500 103,690 10 0.3%
Ryan Companies 8,742,900 147,516 6 0.8%
Jacob Holdings of Sandberg Road 7,419,000 146,880 7 0.8%
L&P Ventures, LLC 7,416,600 140,374 8 0.8%
Jacob Holdings of Monticello, LLC 6,483,900 127,936 9 0.7%
898,301,600$ 17,757,418$ 59.6%344,673,800$ 6,842,045$ 38.1%
(1) The market value and taxable net tax capacity value is for taxes levied in 2019, which are payable in 2020.
Source: Wright County Certificate of Taxes and Taxable Properties and 2010 City of Monticello CAFR
2019 2010
97
CITY OF MONTICELLO
New Construction and Bank Deposits
Last Ten Fiscal Years
New New New New Total New
Commercial Commercial Residential Residential Residential &Percent
Year Permits Value Permits Value Commercial Total (1)Change
2010 3 2,070,000$ 2 319,118$ 2,389,118$ 1,288,460$ -3.4%
2011 5 1,987,000 2 336,606 2,323,606 1,389,163 7.8%
2012 2 880,000 22 3,520,415 4,400,415 1,407,421 1.3%
2013 3 1,790,000 52 8,920,580 10,710,580 1,425,497 1.3%
2014 3 2,106,000 72 12,317,617 14,423,617 1,486,376 4.3%
2015 2 763,000 44 8,836,399 9,599,399 1,557,782 4.8%
2016 7 19,425,000 61 12,750,071 32,175,071 1,643,984 5.5%
2017 3 3,270,264 64 13,358,118 16,628,382 1,765,565 7.4%
2018 4 6,783,829 58 12,148,575 18,932,404 1,827,691 3.5%
2019 4 7,228,571 56 10,712,880 17,941,451 1,915,042 4.8%
(1) Reported for Wright County as of June 30
Source: City of Monticello building department and FDIC Market Share Reports
Bank Deposits (000s)Building Permits
$-
$5,000,000
$10,000,000
$15,000,000
$20,000,000
$25,000,000
2010 2011 2012 2013 2014 2015 2016 2017 2018 2019
New Residential and Commercial Construction
Residential Commercial
98
CITY OF MONTICELLO
Water Sold by Customer Type
Last Ten Fiscal Years
(gallons)
Total
% of % of % of % of Water % of
Year Residential Total Commercial Total Industrial Total Government Total Sold Total
2010 376,687,840 67.1%90,001,208 16.0%47,225,176 8.4%47,227,405 8.4%561,141,629 100.0%
2011 348,580,072 66.0%84,194,027 15.9%50,971,196 9.7%44,219,755 8.4%527,965,050 100.0%
2012 426,358,402 69.0%97,281,410 15.7%46,654,712 7.5%47,866,428 7.7%618,160,952 100.0%
2013 383,079,041 68.8%85,819,687 15.4%45,954,136 8.2%42,206,803 7.6%557,059,667 100.0%
2014 328,835,772 68.2%79,370,922 16.5%38,308,124 7.9%35,566,000 7.4%482,080,818 100.0%
2015 325,188,041 68.1%76,283,322 16.0%38,897,216 8.1%37,005,919 7.8%477,374,498 100.0%
2016 329,068,876 67.7%77,795,226 16.0%42,407,860 8.7%36,647,583 7.5%485,919,545 100.0%
2017 371,596,967 67.7%93,770,712 17.1%43,220,312 7.9%40,409,649 7.4%548,997,640 100.0%
2018 352,322,681 67.3%89,911,481 17.2%43,067,083 8.2%38,128,401 7.3%523,429,646 100.0%
2019 307,411,101 64.0%93,783,767 19.5%44,120,527 9.2%35,187,913 7.3%480,503,308 100.0%
Source: City of Monticello utility billing department
0
100
200
300
400
500
600
700
2010 2011 2012 2013 2014 2015 2016 2017 2018 2019MillionsWater Sold by Customer Type (gallons)
Government
Industrial
Commercial
Residential
99
CITY OF MONTICELLO
Water and Sewage Utility Rates
Last Ten Fiscal Years
Rate Tier 1 Rate Tier 2 Rate Tier 3 Rate Tier 4 Rate Tier 1 Rate Tier 2 Rate Tier 3 Rate Tier 4 Rate Tier 1 Rate Tier 1
Base Rate 501–4,000 4,001–13,369 Over 13,369 Base Rate 501–4,000 4,001–13,369 Over 13,369 Base Rate Over 500
Fiscal First 500 per 100 per 100 per 100 First 500 per 100 per 100 per 100 First 500 per 100
Year Cubic Feet Cubic Feet Cubic Feet Cubic Feet Cubic Feet Cubic Feet Cubic Feet Cubic Feet Cubic Feet Cubic Feet
2010 13.00$ 0.85$ 0.95$ N/A 14.75$ 0.95$ N/A N/A 15.15$ 2.75$
2011 14.30 0.95 1.10 1.20 14.30 0.95 1.10 1.20 16.75 3.00
2012 15.44 1.03 1.19 1.30 15.44 1.03 1.19 1.30 18.76 3.36
2013 17.00 1.13 1.31 1.43 17.00 1.13 1.31 1.43 20.65 3.70
2014 17.00 1.13 1.31 1.43 17.00 1.13 1.31 1.43 20.65 3.70
2015 17.85 1.19 1.38 1.50 17.85 1.19 1.38 1.50 21.69 3.89
2016 18.85 1.22 1.41 1.50 18.85 1.22 1.41 1.50 22.69 3.97
Rate Tier 1 Rate Tier 2 Rate Tier 3 Rate Tier 4 Rate Tier 1 Rate Tier 2 Rate Tier 3 Rate Tier 4 Rate Tier 1 Rate Tier 1
Base Rate 1,001–10,000 10,001–33,000 Over 33,000 Base Rate 1,001–10,000 10,001–33,000 Over 33,000 Base Rate Over 1,000
Fiscal First 1,000 per 1,000 per 1,000 per 1,000 First 1,000 per 1,000 per 1,000 per 1,000 First 1,000 per 1,000
Year Gallons Gallons Gallons Gallons Gallons Gallons Gallons Gallons Gallons Gallons
2017 6.45 1.66 1.92 2.09 6.45 1.66 1.92 2.09 8.05 5.48
2018 6.95 1.70 1.97 2.15 6.95 1.70 1.97 2.15 8.75 5.63
2019 7.10 1.74 2.02 2.21 7.10 1.74 2.02 2.21 9.00 5.77
N/A – Not Available
Note: The city began billing monthly in 2017.
Source: City of Monticello fee schedule
Residential Commercial
Water Sewage
Residential Commercial
Water Sewage
100
CITY OF MONTICELLO
Ratios of Outstanding Debt by Type
Last Ten Fiscal Years
2010 2011 2012 2013 2014 2015 2016 2017 2018 2019
Governmental activities
General obligation bonds
Special assessment 21,320,000$ 29,490,000$ 26,625,000$ 13,010,000$ 12,203,653$ 11,689,653$ 12,730,000$ 12,695,000$ 10,925,000$ 9,200,000$
Other 11,531,903 10,196,903 8,877,403 7,506,653 10,487,000 9,563,000 7,686,000 5,785,000 5,375,000 11,600,000
Tax abatement - - - - - - - 2,960,000 7,800,000 8,390,000
Net premium (discount) 572,079 818,803 744,748 265,320 67,350 190,196 159,266 128,336 105,777 69,187
Total GO bonds 33,423,982 40,505,706 36,247,151 20,781,973 22,758,003 21,442,849 20,575,266 21,568,336 24,205,777 29,259,187
Certificates of indebtedness - - - 445,000 385,000 325,000 265,000 200,000 135,000 70,000
Total general obligation debt 33,423,982 40,505,706 36,247,151 21,226,973 23,143,003 21,767,849 20,840,266 21,768,336 24,340,777 29,329,187
Non-general obligation bonds
Revenue 4,612,454 3,690,898 2,739,341 1,782,784 985,000 - - - - -
Total governmental activites 38,036,436$ 44,196,604$ 38,986,492$ 23,009,757$ 24,128,003$ 21,767,849$ 20,840,266$ 21,768,336$ 24,340,777$ 29,329,187$
Business-type activities
General obligation
revenue bonds 747,097$ 654,097$ 568,597$ 3,479,347$ 3,206,347$ 2,930,347$ 2,460,000$ 2,280,000$ 2,095,000$ 1,910,000$
Non-general obligation
Revenue bonds 26,445,000 26,445,000 26,445,000 26,445,000 - - - - - -
PFA loans - - - - - 615,268 1,927,850 1,998,402 1,903,000 1,800,000
Net premium (discount) (457,441) (434,904) (412,366) (360,211) 31,941 30,339 27,354 23,495 21,510 19,524
Total business-type activities 26,734,656$ 26,664,193$ 26,601,231$ 29,564,136$ 3,238,288$ 3,575,954$ 4,415,204$ 4,301,897$ 4,019,510$ 3,729,524$
Total primary government 64,771,092$ 70,860,797$ 65,587,723$ 52,573,893$ 27,366,291$ 25,343,803$ 25,255,470$ 26,070,233$ 28,360,287$ 33,058,711$
% of personal income (1) 15.8% 15.3% 13.2% 10.1% 5.1% 4.4% 4.2% 4.2% 4.4% 4.8%
Per capita debt (1) 5,632$ 5,554$ 5,071$ 4,055$ 2,106$ 1,931$ 1,899$ 1,944$ 2,093$ 2,399$
(1) See the Schedule of Demographic and Economic Statistics.
Source: Details regarding the city’s outstanding debt can be found in the notes to basic financial statements.
101
CITY OF MONTICELLO
Ratios of Net General Obligation Bonded Debt Outstanding
Last Ten Fiscal Years
Percentage of
Less Net Estimated
General Position Actual Market
Obligation Restricted for Value of
Year Bonds (1)Debt Service Total Property (2)Per Capita (3)
2010 34,171,079$ 18,337,866$ 15,833,213$ 1.33%1,377$
2011 41,159,803 16,894,936 24,264,867 2.19%1,902
2012 36,815,748 13,061,044 23,754,704 1.95%1,836
2013 24,706,320 9,660,316 15,046,004 1.25%1,161
2014 26,349,350 9,942,901 16,406,449 1.08%1,263
2015 24,728,535 9,266,800 15,461,735 0.90%1,178
2016 23,327,620 7,009,231 16,318,389 0.89%1,227
2017 24,071,831 6,359,147 17,712,684 0.90%1,321
2018 26,457,287 6,082,504 20,374,783 1.03%1,503
2019 31,258,711 5,251,080 26,007,631 1.27%1,887
(1) Does not include revenue bonds.
(2) See the Schedule of Taxable Net Tax Capacity Value and Estimated Market Value of Taxable Property for the estimated actual market value.
(3) See the Schedule of Demographic and Economic Statistics.
Source: Details regarding the city’s outstanding debt can be found in the notes to basic financial statements.
102
CITY OF MONTICELLO
Legal Debt Margin Information
Last Ten Fiscal Years
2010 2011 2012 2013 2014 2015 2016 2017 2018 2019
35,646,663$ 33,196,242$ 36,591,591$ 35,671,296$ 45,407,112$ 51,363,756$ 54,853,128$ 58,860,603$ 59,224,632$ 61,629,411$
Total net debt
applicable to
debt limit 4,985,000 4,365,000 3,795,000 6,200,000 10,872,000 9,888,000 7,951,000 8,945,000 13,310,000 20,060,000
Legal debt margin 30,661,663$ 28,831,242$ 32,796,591$ 29,471,296$ 34,535,112$ 41,475,756$ 46,902,128$ 49,915,603$ 45,914,632$ 41,569,411$
Total net debt
applicable to
debt limit as a
percentage
of debt limit 14.0% 13.1% 10.4% 17.4% 23.9% 19.3% 14.5% 15.2% 22.5% 32.5%
Market value 2,054,313,700$
Debt limit (3% of market value) 61,629,411$
Debt applicable to limit
General obligation bonds 31,170,000
Less amounts for general obligation bonds
not subject to debt limit (11,110,000)
Total net debt applicable to limit 20,060,000
Legal debt margin 41,569,411$
Source: Details regarding the city’s outstanding debt can be found in the notes to basic financial statements. Market value data provided in Wright County Certificate of Taxes and Taxable
Properties.
Legal Debt Margin Calculation for Fiscal Year 2019
Fiscal Year
Legal debt limit
103
CITY OF MONTICELLO
Computation of Direct and Overlapping Debt
As of December 31, 2019
Estimated
Gross percentage Amount
bonded debt applicable applicable to
Jurisdiction outstanding to city (1)city
DIRECT DEBT:
City of Monticello 29,329,187$ 100.0%29,329,187$
OVERLAPPING DEBT:
I.S.D. 882 49,895,000 73.7%36,772,615
Wright County 153,290,000 16.9%25,906,010
Total Overlapping Debt 62,678,625
Total direct and overlapping debt 92,007,812$
(1)
Note:
Source: The Wright County auditor provided the debt outstanding and estimated applicable percentages for the school district and county.
The percentage of overlapping debt applicable is estimated using taxable assessed property values. Applicable percentages were estimated by determining the portion of the
government’s taxable assessed value that is within the City’s boundaries and dividing it by the government’s total taxable assessed value.
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 recognizes 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.
104
CITY OF MONTICELLO
Schedule of General Obligation Revenue Bond Coverage
Last Ten Fiscal Years
Sewage Fund:
Net Revenue
Gross Operating Available for
Year (3)Revenues (1)Expenses(2)Debt Service Principal Interest Total Coverage
2013 2,006,718$ 1,476,418$ 530,300$ -$ -$ -$ -
2014 2,081,660 1,570,197 511,463 273,000 91,963 364,963 140.1%
2015 2,083,122 1,479,157 603,965 276,000 84,158 360,158 167.7%
2016 2,223,252 1,411,831 811,421 570,830 78,002 648,832 125.1%
2017 2,472,774 1,552,617 920,157 289,000 63,823 352,823 260.8%
2018 2,581,833 1,674,428 907,405 287,149 81,125 368,274 246.4%
2019 2,443,856 1,596,714 847,142 288,000 76,826 364,826 232.2%
(1) Total revenues does not include investment earnings.
(2) Total operating expenses excluding depreciation.
(3) The first year of bond payments is 2014. Schedule excludes telecommunications bonds. No other revenue bonds existed before 2013.
Source: Finance Department
Debt Service Requirements (3)
105
CITY OF MONTICELLO
Demographic and Economic Statistics
Last Ten Fiscal Years
Per
Estimated Capita
Unemployment School Personal Personal
Year Population (1)rate (2)Enrollment (3)Income (4)Income (5)
2010 11,501 8.8%3,932 410,758,215$ 35,715$
2011 12,759 7.5%3,921 462,041,667 36,213
2012 12,935 6.2%3,989 498,178,590 38,514
2013 12,964 4.6%4,031 520,193,464 40,126
2014 12,993 3.8%4,010 531,660,567 40,919
2015 13,125 3.7%4,115 570,058,125 43,433
2016 13,299 4.3%4,119 603,960,786 45,414
2017 13,409 3.5%4,074 620,461,248 46,272
2018 13,553 3.4%4,157 644,811,081 47,577
2019 13,782 3.5%4,053 691,594,542 50,181
Notes/sources:
(1)
(2)
(3)
(4)
(5)
2010 U.S. Bureau of Census; 2011–2019 Minnesota State Demographic Center population estimates.
Annual average unemployment rate for Wright County provided by the Minnesota Department of Employment & Economic Development.
ISD No. 882 enrollment information was obtained from the District's CAFR for the year ended June 30, 2019.
This estimated personal income number is calculated by taking the per capita personal income and multiplying it by the city’s population. Also see note (5) regarding the per
capita personal income figures.
Per capita personal income data is provided by the Bureau of Economic Analysis. Monticello's estimates are based on Wright County information. Wright County, where
Monticello is located, is the smallest, relevant statistical tracking area. Data is subject to annual revisions by the Bureau of Economic Analysis.
106
CITY OF MONTICELLO
Principal Employers
Current Year and Nine Years Ago
Percentage of Percentage of
Total City Total City
Employer Employees Rank Employment (1)Employees Rank Employment (1)
Xcel Energy (Northern States)600 1 8.1%450 4 7.3%
ISD No. 882 (Monticello)576 2 7.8%875 1 14.2%
CentraCare Medical Center (New River)500 3 6.8%550 2 8.9%
Cargill Kitchen Solutions (Sunny Fresh)350 4 4.7%465 3 7.5%
Wal-Mart Supercenter 300 5 4.1%375 5 6.1%
City of Monticello 202 6 2.7%151 6 2.4%
Home Depot 150 7 2.0%
Target 150 7 2.0%
Ultra Machine Corporation 140 9 1.9%135 8 2.2%
Cub Foods 100 10 1.4%123 9 2.0%
Denny Hecker Monticello 150 7 2.4%
Monticello Clinic 98 10 1.6%
3,068 43.5%3,372 54.7%
(1) The city estimates its workforce by using the city's percentage of total county population and multiplying that number by the county's total workforce.
Source: City of Monticello 2019A Bond Statement and 2010 City of Monticello CAFR
2019 2010
107
CITY OF MONTICELLO
City Government Employees by Function/Program
Last Ten Fiscal Years
2010 2011 2012 2013 2014 2015 2016 2017 2018 2019
Employees by function
General Fund
General government 11.00 11.00 11.00 11.00 12.50 12.50 13.50 11.50 11.50 11.50
Public Safety
Building 3.00 3.00 3.00 3.00 3.00 4.00 4.00 4.00 3.00 3.00
Fire marshal - - - - - - - - 1.00 1.00
Public works
Engineering 3.00 3.00 3.00 1.00 1.00 1.00 1.00 1.00 2.00 2.00
Maintenance(1)19.50 19.00 19.00 19.00 18.50 18.50 18.50 10.50 9.50 9.60
Recreation and culture
Parks 5.00 5.00 5.00 5.00 5.00 5.00 5.00 13.00 10.00 8.90
Community development 2.00 2.00 2.00 2.00 2.00 2.00 2.00 2.00 2.00 2.00
Special Revenue Funds
Recreation and culture
Community center-FT 8.00 8.00 8.00 8.00 7.50 7.50 7.50 7.50 7.50 7.50
Community center-PT(2)36.50 36.50 36.50 36.50 36.50 36.50 36.50 38.10 37.30 35.00
Enterprise Funds
Sewer/water 4.00 4.00 4.00 4.00 4.00 5.00 5.00 6.00 6.00 6.50
Deputy registrar(3)5.00 5.00 5.00 5.00 5.00 5.00 5.00 7.50 7.00 7.60
Liquor store 10.00 10.00 10.00 10.00 11.50 11.50 11.50 12.40 13.10 14.20
FiberNet(4)11.00 11.50 11.50 8.50 8.50 8.50 - - - -
Total 118.00 118.00 118.00 113.00 115.00 117.00 109.50 113.50 109.90 108.80
Employees by fund type
General Fund 43.50 43.00 43.00 41.00 42.00 43.00 44.00 42.00 39.00 38.00
Special Revenue Funds 44.50 44.50 44.50 44.50 44.00 44.00 44.00 45.60 44.80 42.50
Enterprise Funds 30.00 30.50 30.50 27.50 29.00 30.00 21.50 25.90 26.10 28.30
118.00 118.00 118.00 113.00 115.00 117.00 109.50 113.50 109.90 108.80
FT = Full-time PT = Part-time
(1) Includes seasonal public works
(2) Years 2010-2013 were estimated 2014 levels as data was not previously tracked.
(3) Prior to 2013, the deputy registrar function was included with general government. Prior years were restated.
(4) Management and operations were contracted out beginning July 1, 2016.
Source: City of Monticello human resources department
Fiscal Year
108
CITY OF MONTICELLO
Operating Indicators by Function
Last Ten Fiscal Years
2010 2011 2012 2013 2014 2015 2016 2017 2018 2019
Function
Fire
Calls for service 282 284 237 270 286 262 270 312 269 294
Public works
Salt (tons) 521 445 300 475 385 534 525 461 585 752
Sand (tons) 710 547 335 325 600 285 300 397 329 432
Crack sealant (pounds) 23,580 11,384 1,492 25,739 23,282 29,580 49,039 46,721 46,868 47,176
Asphalt repairs (tons of asphalt) 200 253 220 225 190 293 220 167 164 492
Recreation and culture
Shade trees planted 150 140 220 275 270 257 280 320 305 314
Diseased trees removed 180 113 205 71 46 208 60 40 12 15
Trails maintained (miles) 17 17 17 17 18 18 20 40 40 41
Community center users 183,527 190,014 175,272 211,234 204,134 199,228 197,523 188,124 183,523 183,521
Program sales 167,723$ 168,159$ 162,227$ 192,708$ 184,125$ 213,924$ 193,628$ 162,461$ 183,194$ 112,506$
Rental revenue 184,913$ 154,962$ 149,733$ 163,329$ 150,964$ 154,938$ 168,353$ 190,343$ 199,200$ 197,351$
Economic development
Permits issued 495 372 632 659 721 768 802 911 856 837
Permit valuation 9,033,078$ 5,333,124$ 12,285,873$ 15,821,223$ 19,714,895$ 36,242,742$ 59,426,683$ 43,853,123$ 33,125,788$ 45,723,446$
New single-family dwellings 2 2 22 52 72 44 61 64 58 56
Water
Meters/remotes replaced 145 215 418 235 598 694 991 734 606 426
Curb box repairs (water valves) 200 200 100 100 100 100 100 100 50 4
Hydrant repair 175 430 300 300 203 430 250 177 159 65
Residential water gallons used 376,687,840 348,580,072 426,358,402 383,079,041 328,835,772 325,188,041 329,068,876 371,596,967 352,322,681 307,411,101
Avg. daily consumption (MG) 1.625 1.557 1.798 1.621 1.400 1.308 1.419 1.580 1.540 1,401
Max. daily gallons pumped (MG) 3.565 4.116 4.590 4.269 4.031 3.203 3.450 4.168 3.400 3,064
Sewer
Sewage flow (MG) 398 431 408 392 435 417 432 445 434 473
Thickened sludge (wet tons) n/a n/a n/a n/a 1,924 1,549 1,449 1,578 2,115 2,145
Thickened sludge (dry tons) n/a n/a n/a n/a 264 236 216 229 333 336
Dry tons as % of wet tons n/a n/a n/a n/a 0 0 14.9% 14.5% 15.7% 15.7%
Library
Items checked out 248,327 228,886 237,938 263,220 199,182 195,235 190,433 182,986 182,691 171,460
Programs offered 164 153 149 173 169 167 212 290 287 243
Program participants 3,604 3,807 3,761 3,773 3,788 3,919 4,306 5,336 5,059 4,788
Fiscal Year
(continued)
109
CITY OF MONTICELLO
Operating Indicators by Function
Last Ten Fiscal Years (continued)
2010 2011 2012 2013 2014 2015 2016 2017 2018 2019
Fiber optics
Customers n/a n/a n/a n/a 1,539 1,574 1,630 1,671 1,639 1,701
Service subscriptions n/a n/a n/a n/a 2,755 2,656 2,589 2,528 2,388 2,381
TV customers n/a n/a n/a n/a 813 714 641 543 458 395
Phone customers n/a n/a n/a n/a 582 518 461 431 386 362
Internet customers n/a n/a n/a n/a 1,360 1,424 1,487 1,554 1,544 1,624
Liquor store
Transactions n/a n/a n/a n/a 229,236 237,535 235,901 248,356 261,071 267,276
Average liquor sale transaction n/a n/a n/a n/a 22 22.42$ 22.39$ 22.42$ 22.56$ 23.07$
Beer sales 2,289,801$ 2,328,735$ 2,483,194$ 2,539,168$ 2,604,942$ 2,763,478$ 2,768,394$ 2,933,853$ 3,074,408$ 3,252,142$
Liquor sales 1,251,448$ 1,343,109$ 1,396,521$ 1,506,776$ 1,546,118$ 1,634,198$ 1,624,908$ 1,739,562$ 1,909,953$ 2,019,096$
Wine sales 657,562$ 748,908$ 812,832$ 860,817$ 868,779$ 927,732$ 889,082$ 894,151$ 904,385$ 894,005$
Other sales n/a n/a n/a 138,854$ 145,903$ 166,654$ 171,420$ 192,615$ 201,482$ 212,052$
Gross profit margin % - beer 20.4% 19.1%20.3% 22.5% 21.4% 25.6% 21.1% 23.2% 21.4% 22.5%
Gross profit margin % - liquor 29.6% 28.0%29.3% 27.7% 30.3% 29.8% 29.0% 26.6% 29.0% 30.1%
Gross profit margin % - wine 26.8% 28.5%31.4% 29.7% 30.7% 31.5% 32.5% 34.4% 32.5% 31.8%
Annual sales increase 2.9% 3.9%4.1% 4.1% 2.4% 6.3% -0.7% 5.6% 5.7% 4.7%
Deputy registrar (DMV)
Motor vehicle transactions 51,250 54,814 56,211 55,261 60,051 64,927 67,508 70,605 110,574 129,825
DNR transactions 5,982 5,616 5,465 5,727 5,949 5,914 6,318 5,873 7,009 8,148
Game/fish transactions 156 325 509 445 433 387 600 647 549 709
Drivers licenses transactions 605 579 814 951 1,462 1,294 1,465 1,390 1,411 1,283
Total transactions 57,993 61,334 62,999 62,384 67,895 72,522 75,891 78,515 119,543 139,965
Dealerships serviced n/a n/a n/a 19 19 19 21 27 28 30
Net revenue per transaction n/a 1.71$ 2.75$ 2.68$ 2.91$ 3.02$ 3.05$ 2.66$ 2.21$ 3.48$
N/A = Not Available
MG = Millions of Gallons
Notes: Indicators are not available for the general government function.
State implementation of MNLARS changed how transactions are counted beginning in 2018.
Sources: Various city departments
Fiscal Year
110
CITY OF MONTICELLO
Capital Assets Statistics by Function
Last Ten Fiscal Years
2010 2011 2012 2013 2014 2015 2016 2017 2018 2019
Function
Public safety
Fire
Fire stations in service 1 1 1 1 1 1 1 1 1 1
Number of volunteers 30 30 30 30 30 30 30 30 30 30
Public works
Streets (miles)68.0 68.0 68.0 68.0 68.0 68.0 68.0 69.0 70.0 70.0
Recreation and culture
Parks acreage 509 635 635 696 860 326 367 367 404 404
Parks 28 28 28 28 30 30 30 30 30 30
Park buildings 15 15 15 15 15 15 15 15 18 18
Community center (sq. ft.)81,000 81,000 81,000 82,000 82,000 82,000 82,000 82,000 82,000 82,000
Water
Fire hydrants 700 700 700 700 700 700 700 700 700 700
Note: No capital asset indicators are available for the general government and economic development functions.
Note: The city contributed jointly-owned land at the Bertram Chain of Lakes to Wright County in 2015.
Source: Various city departments
111
Schedule of Cash Flows Adjusted for Additional City Funding of Fiber Optics Fund
Last Five Fiscal Years
2015 2016 2017 2018 2019
Cash flows from operating activities
Cash received from customers and users 1,733,236$ 1,613,032$ 1,886,377$ 1,679,899$ 1,789,793$
Cash paid to suppliers for goods and services (1,332,231) (1,657,929) (1,955,033) (1,877,048) (1,465,167)
Cash paid to employees (565,657) (322,670) (18,367) (205) (244)
Cash paid to other funds for services provided (24,291) (26,929) - (1,530) (1,194)
Net cash used by operating activities (188,943) (394,496) (87,023) (198,884) 323,188
Cash flows from noncapital financing activities
Transfers from other funds 450,000 350,000 180,000 130,000 -
Cash flows from capital and related financing activities
Sale of assets 29,850 - - - -
Cash flows from investing activities
Interest on investments 8,255 5,783 4,490 3,216 16,259
Net increase (decrease) in cash and cash equivalents 299,162 (38,713) 97,467 (65,668) 339,447
Additional city funding
Transfer from liquor fund (450,000) (350,000) (180,000) (130,000) -
2014A debt service paid by property tax levy (163,712) (515,519) (512,086) (512,665) (512,357)
Adjusted net decrease in cash and cash equivalents (314,550)$ (904,232)$ (594,619)$ (708,333)$ (172,910)$
CITY OF MONTICELLO
$(1,000,000)
$(800,000)
$(600,000)
$(400,000)
$(200,000)
$-
$200,000
$400,000
$600,000
2015 2016 2017 2018 2019
Fiber Optics Fund Cash Flows
Net increase (decrease) in cash and
cash equivalents
Transfer from liquor fund
2014A debt service paid by property
tax levy
Adjusted net decrease in cash and
cash equivalents
112
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