2020 Monticello Annual Comprehensive Financial ReportComprehensive Annual Financial Report City of MonƟcello, Minnesota For the Fiscal Year Ended December 31, 2020
City of Monticello
Wright County, Minnesota
COMPREHENSIVE ANNUAL FINANCIAL REPORT
FOR THE YEAR ENDED DECEMBER 31, 2020
Prepared by
THE FINANCE DEPARTMENT
Sarah Rathlisberger, Finance Director ● Liz Lindrud, Senior Accountant
Julie Cheney, Finance Assistant ● Cheri Butler, Payroll Clerk
Debbie Davidson, Finance Clerk ● Pat Kovich, Utility Billing Specialist
CITY OF MONTICELLO
Comprehensive Annual Financial Report
Table of Contents
December 31, 2020
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 69
Combining Statement of Revenues, Expenditures and Changes in Fund Balance 70
(continued)
I
CITY OF MONTICELLO
Comprehensive Annual Financial Report
Table of Contents
December 31, 2020 (continued)
Internal Service Funds Page
Combining Statement of Net Position 71
Combining Statement of Revenues, Expenses and Changes in Net Position 72
Combining Statement of Cash Flows 73
Other Supplementry Schedules
Schedule of Revenues (Sources) and Expenditures (Uses) - General Fund 75
Schedule of Revenues, Expenditures and Changes in Fund Balance - Budget and Actual - Small Cities Development Program 79
Schedule of Revenues, Expenditures and Changes in Fund Balance - Budget and Actual - Cemetery Fund 80
Schedule of Revenues, Expenditures and Changes in Fund Balance - Budget and Actual - CDBG-Revitalization Fund 81
Schedule of Assets, Liabilities, Deferred Inflows of Resources and Fund Balances - Economic Development Authority 82
Schedule of Revenues, Expenditures and Other Financing Uses - Economic Development Authority 84
Schedule of Assets, Liabilities, Deferred Inflows of Resources and Fund Balances - Debt Service Activities 86
Schedule of Revenues, Expenditures and Other Financing Sources (Uses) - Debt Service Activities 87
STATISTICAL SECTION
Financial trends
Net Position by Component - Last Ten Fiscal Years 89
Changes in Net Position - Last Ten Fiscal years 90
General Governmental Tax Revenues by Source - Last Ten Fiscal Years 92
Fund Balances of Governmental Funds - Last Ten Fiscal Years 93
Changes in Fund Balances of Governmental Funds - Last Ten Fiscal Years 94
Governmental Funds Tax Revenues by Source - Last Ten Fiscal Years 95
Revenue capacity
Tax Capacity Value and Estimated Market Value of Taxable Property - Last Ten Fiscal Years 96
Property Tax Rates - All Direct and Overlapping Governments - Last Ten Fiscal Years 97
Property Tax Levies and Collections - Last Ten Fiscal Years 98
Principal Property Taxpayers - Current Year and Nine Years Ago 99
New Construction and Bank Deposits - Last Ten Fiscal Years 100
Water Sold by Customer Type - Last Ten Fiscal Years 101
Water and Sewage Utility Rates - Last Ten Fiscal Years 102
Debt capacity
Ratios of Outstanding Debt by Type - Last Ten Fiscal Years 103
Ratios of Net General Obligation Bonded Debt Outstanding - Last Ten Fiscal Years 104
Legal Debt Margin Information - Last Ten Fiscal Years 105
Computation of Direct and Overlapping Debt - As of December 31, 2020 106
Schedule of General Obligation Revenue Bond Coverage - Last Ten Fiscal Years 107
Economic and demographic information
Demographic and Economic Statistics - Last Ten Fiscal Years 108
Principal Employers - Current Year and Nine Years Ago 109
Operating information
City Government Employees by Function/Program - Last Ten Fiscal Years 110
Operating Indicators by Function - Last Ten Fiscal Years 111
Capital Assets Statistics by Function - Last Ten Fiscal Years 113
Schedule of Cash Flows Adjusted for Additional City Funding of Fiber Optics Fund -Last Six Fiscal Years 114
II
INTRODUCTORY SECTION
May 14, 2021
To the Honorable Mayor, Members of the City Council, and the Residents of the
City of Monticello:
The city is pleased to present the Comprehensive Annual Financial Report
(Financial Report) of the City of Monticello, Minnesota (the city) for the fiscal
year ended December 31, 2020. 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, 2020 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, 2020, are fairly presented in conformity with accounting
principles generally accepted in the United States of America. The independent
Letter of Transmittal CITY OF MONTICELLO
auditor’s report is presented as the first component of the financial section of
this report.
The preparation of this Financial Report is a requirement of state law. Also, the
Financial Report 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 residents 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 independent auditor’s
report.
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 13,886. 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 members
1
Letter of Transmittal CITY OF MONTICELLO
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, stormwater, 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 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. 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 2020, the city issued 957 permits with a total valuation of
$32,453,366. 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 2020. The first ongoing initiative
is the revitalization of its historic downtown. The downtown is the oldest part of
the city, and many buildings need 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, several store fronts are unoccupied. To address these
issues, the city completed an 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. Several
property acquisitions have taken place by the Monticello Economic
Development Authority (EDA) 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’s new Monti:2040 Comprehensive Plan, completed in 2020, includes
downtown revitalization as a priority focus through 2040.
2
Letter of Transmittal CITY OF MONTICELLO
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 2021.
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, the townships of Becker, Big
Lake, Silver Creek, and Monticello.
In addition, and as was the case for all forms and levels of government, a major
focus in 2020 was the COVID-19 pandemic. The city had to find new ways to
provide essential services for those who live, work, and play in our community.
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
The city maintains budgetary controls, and 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 Financial Report for the fiscal year ended December
31, 2019. This was the eleventh year that the city has achieved this prestigious
award. To be awarded a Certificate of Achievement, the city had to publish an
easily readable and efficiently organized Financial Report. 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. The city
believes our current Financial Report continues to meet the Certificate of
Achievement Program’s requirements, and the city is submitting it to the GFOA
to determine its eligibility for the award.
The 2020 Financial Report 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. City
management expresses our 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, 2019.
The Certificate of Achievement is a prestigious national award
recognizing conformance with the highest standards for preparation
of state and local government reports.
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, 2019
Executive Director
4
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 Project Streets Community Elections Fire City
Department Development Engineer Department Center Department Attorney
Audit Building Construction Parks Sheriff
Inspections Inspectors Department Department
Deputy Receptionist Consulting Water &Animal
Registrar Engineer Sewage Control
Department
Liquor Consulting Refuse County
Operations Planner Collection Assessor
FiberNet
Operation
55
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 .............................................................. Rachel Leonard
Public Works Director/City Engineer ..................................... Matt Leonard
Finance Director ......................................................... Sarah Rathlisberger
Community Development Director................................. Angela Schumann
Community Center Director ............................................................. Vacant
City Clerk ....................................................................... Jennifer Schreiber
Human Resource Manager ..................................................... Tracy Ergen
Communications Coordinator .......................................................... Vacant
Street Superintendent ........................................................... Mike Haaland
Parks Superintendent .............................................................. Tom Pawelk
Senior Accountant .................................................................... Liz Lindrud
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
FINANCIAL SECTION
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, 2020, 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 sta tements
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, 2020, 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 Bo ard, 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 a nd 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 financ ial
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.
Prior Year Comparative Information
We have previously audited the City’s 2019 financial statements, and we
expressed unmodified audit opinions on the respective financial statements
of the governmental activities, the business-type activities, each major
fund, and the aggregate remaining fund information in our report dated
May 18, 2020. In our opinion, the partial comparative information
presented herein as of and for the year ended December 31, 2019 is
consistent, in all material respects, with the audited financial statements
from which it has been derived.
OTHER REPORTING REQUIRED BY GOVERNMENT AUDITING
STANDARDS
In accordance with Government Auditing Standards, we have also issued
our report dated May 14, 2021, 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 14, 2021
8
MANAGEMENT’S DISCUSSION AND ANALYSIS
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, 2020. 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, stormwater, 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
stormwater 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 $137,599,467 (net position).
Of this amount, $50,310,955 (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 $36,034,364, an increase of $489,959, or
1.4%. Nonspendable, restricted, and assigned uses of fund balance totaled
$29,539,732, leaving an unassigned fund balance of $6,494,632, which is
$47,479, or 0.7%, lower than the 2019 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 $6,494,632, or 73.6%, of total General Fund expenditures for 2020.
The city targets 60-75% 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% 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 60-75% 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 2020, government-wide capital assets decreased by $1,140,692 due to
disposals and depreciation on existing assets exceeding acquisitions.
Governmental activities include completion of a new fire station and pedestrian
improvements, purchase of a fire ladder truck, construction of 2020 street
improvements, repairs to the roof at the Monticello Community Center, and
progress on phase 1 of improvements at the Bertram Chain of Lakes regional
park. The city also completed a walking trail and park shelter and storm drain
repair on Maple Street. Other acquisitions include a developer donation of land
in Deephaven and Haven Ridge developments and acquisitions of equipment
including a parks Toro mower, aerial bucket lift truck, and plow truck chassis.
Technology upgrades for document storage, Audio-Visual equipment, and
software were also acquired. Finally, the city upgraded heating, ventilation, and
air conditioning (HVAC) units in various city buildings.
The city’s total long-term bonded indebtedness decreased by $1,649,000, or
5.0%, in 2020. Principal payments made on outstanding debt totaled
$3,804,000. The city issued $2,155,000 in general obligation improvement
bonds in 2020 to finance the 2020 street improvement project. The 2020A
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 (59%) 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 (4%) represents resources that are
subject to external restrictions on how they can be used. The remaining
unrestricted net position of $50,310,955 may be used to meet the ongoing
obligations to citizens and creditors. Of the unrestricted net position,
$17,649,288 (35%) is attributable to business-type activities.
The unrestricted governmental activities net position increased $5,527,968
(20%), and business-type activities unrestricted net position increased
$2,793,648 (19%). The government-wide total unrestricted net position
increased $8,321,616 (20%), reflecting revenues exceeding conservative
budgeted estimates, expenses below liberal estimates, and use of restricted net
position where applicable.
The $963,117 (1%) increase in governmental activities capital assets is
reflective of capital asset purchases and reinvestment, exceeding depreciation
and disposals. Business-type capital assets decreased $2,103,809 (5%) due to
depreciation in excess of additions.
Net investment in capital assets, which is capital assets less related debt,
decreased because capital asset disposals and depreciation exceeded capital
asset acquisitions less the amount of debt borrowed to acquire assets.
2020 2019 2020 2019 2020 2019
Current and other assets 47,287,278$ 47,955,707$ 19,431,324$ 16,554,485$ 66,718,602$ 64,510,192$
Capital assets 67,965,404 67,002,287 44,433,718 46,537,527 112,399,122 113,539,814
Total assets 115,252,682 114,957,994 63,865,042 63,092,012 179,117,724 178,050,006
Deferred outflows of resources 309,898 313,775 81,748 79,890 391,646 393,665
Long-term liabilities 30,876,766 32,036,517 4,454,304 4,664,872 35,331,070 36,701,389
Other liabilities 1,275,645 2,136,609 763,874 636,291 2,039,519 2,772,900
Total liabilities 32,152,411 34,173,126 5,218,178 5,301,163 37,370,589 39,474,289
Deferred inflows of resources 4,460,169 5,266,362 79,145 207,096 4,539,314 5,473,458
Net position
Net investment in capital assets 40,836,892 40,008,410 41,000,179 42,808,003 81,837,071 82,816,413
Restricted 5,451,441 8,690,172 - - 5,451,441 8,690,172
Unrestricted 32,661,667 27,133,699 17,649,288 14,855,640 50,310,955 41,989,339
Total net position 78,950,000$ 75,832,281$ 58,649,467$ 57,663,643$ 137,599,467$ 133,495,924$
Governmental Activities Business-Type Activities Total
12
Management’s Discussion and Analysis CITY OF MONTICELLO
CHANGE IN NET POSITION
2020 2019 2020 2019 2020 2019
Revenues
Program revenues
Charges for services 2,665,535$ 3,525,783$ 14,402,228$ 12,932,551$ 17,067,763$ 16,458,334$
Operating grants and contributions 463,335 431,004 - - 463,335 431,004
Capital grants and contributions 1,289,990 1,024,891 1,488,339 1,646,123 2,778,329 2,671,014
General revenues
Property taxes 10,874,313 10,375,714 - - 10,874,313 10,375,714
Tax increments 707,824 679,925 - - 707,824 679,925
Franchise taxes 418,030 432,934 - - 418,030 432,934
Unrestricted grants and aids 886,544 - 151,794 - 1,038,338 -
Unrestricted investment earnings 666,325 969,216 332,938 482,120 999,263 1,451,336
Total revenues 17,971,896 17,439,467 16,375,299 15,060,794 34,347,195 32,500,261
Expenses
General government 2,335,614 1,927,752 - - 2,335,614 1,927,752
Public safety 2,658,246 2,406,748 - - 2,658,246 2,406,748
Public works 4,777,282 5,765,576 - - 4,777,282 5,765,576
Sanitation 681,948 610,944 - - 681,948 610,944
Recreation and culture 3,289,716 3,636,958 - - 3,289,716 3,636,958
Economic development 1,914,825 872,984 - - 1,914,825 872,984
Interest and fiscal charges 756,546 752,595 - - 756,546 752,595
Water utility - - 1,212,656 1,216,446 1,212,656 1,216,446
Sewage utility - - 2,960,153 2,889,438 2,960,153 2,889,438
Stormwater - - 658,771 - 658,771 -
Liquor - - 6,395,558 5,577,481 6,395,558 5,577,481
Fiber optics - - 2,063,712 1,990,052 2,063,712 1,990,052
Deputy registrar - - 538,625 458,695 538,625 458,695
Total expenses 16,414,177 15,973,557 13,829,475 12,132,112 30,243,652 28,105,669
Increase in net position before transfers 1,557,719 1,465,910 2,545,824 2,928,682 4,103,543 4,394,592
Transfers 1,560,000 (2,223,245) (1,560,000) 2,223,245 - -
Change in net position 3,117,719 (757,335) 985,824 5,151,927 4,103,543 4,394,592
Net position, January 1 75,832,281 76,589,616 57,663,643 52,511,716 133,495,924 129,101,332
Net position, December 31 78,950,000$ 75,832,281$ 58,649,467$ 57,663,643$ 137,599,467$ 133,495,924$
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 60% 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 15% of revenues, with about 19% generated
by the Community Center, a decrease of previous years due to the COVID-19
pandemic. Capital grants and contributions include special assessments and
revenues from other sources restricted to capital asset acquisition. Investment
earnings include both interest earnings 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 $532,429 (3%) in the current year.
Charges for services decreased $860,248 (24%) with decreased operations at
the Community Center caused by the COVID-19 pandemic. Additionally,
unrestricted grants and aids increased $886,544 due to federal CARES Act
funding, property taxes increased by $498,599 (5%), and investment earnings
decreased $302,891 (31%).
Public works (engineering, streets, ice and snow removal, shop and garage,
street lighting, etc.) expenses are the most significant (29%), followed by
recreation and culture (20%), public safety (16%), general government (14%),
economic development (12%), interest and fiscal charges (5%), and sanitation
(4%). Included in these amounts is depreciation expense, which is 22% of the
total expenses for governmental activities.
Governmental activities expenses increased $440,620 (3%) in the current year.
The most significant changes in program expenses were as follows:
Economic development increased $1,041,841 (119%) due to land
acquisition related to a new TIF district to be certified in 2021.
General government expenses increased $407,862 (21%) due to a solar
production investment program that began in 2020 whereby the city pays
Novel Solar for kilowatts produced in return for credit on its electric bill from
Xcel Energy.
Public works decreased $988,294 (17%) due to decrease in depreciation
charges to the public works function. The decrease was caused by the
transfer of capital assets from governmental activities to the Stormwater
enterprise fund in 2019.
Recreation and culture decreased $347,242 (10%) as a result of reduced
operations at the Community Center caused by the COVID-19 pandemic.
$-
$1
$2
$3
$4
$5
$6
General
government
Public safety Public works Sanitation Recreation &
culture
Economic
development
Interest &
fiscal
chargesMillionsProgram Expenses and Revenues -
Governmental Activities
Program Expenses Program Revenues
14
Management’s Discussion and Analysis CITY OF MONTICELLO
Business-type Activities. Business-type activities increased the city’s net
position by $985,824, which is $4,166,103 less than the prior fiscal year’s
increase in business-type net position but is $863,324 more after factoring out
the transfer of capital assets from governmental activities to the Stormwater
enterprise fund that occurred in 2019. The change is mostly attributable to fewer
operating transfers to governmental activities and improved operations in the
Liquor fund.
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, 2020, the city’s governmental funds reported total ending fund
balances of $36,034,364, an increase of $489,959 (1%) when compared with
the prior year. Approximately 14% or $5,008,177 of the total ending fund
balances constituted restricted fund balances, which are considered unavailable
for appropriation for general operations. The $173,203 nonspendable fund
balance accounted for 0.5% 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
$6,640,235, decreasing $37,015 (1%) from the prior year. General fund
revenues were $557,063 (6%) more than the prior fiscal year and expenditures
increased by $557,550 (7%).
General government expenditures increased $393,309 (22%) with most of the
increase related to employee costs and a new solar investment program that
began in 2020. Public safety expenditures increased $294,189 (12%) due to an
increase in the police contract with Wright County and expenditures related to
the COVID-19 pandemic. Public works expenditures decreased $322,719
(15%) due to vacancies in staffing due to a retirement and lower wages for snow
removal. Recreation and culture expenditures increased by $121,767 (10%)
with the addition of a full-time position in the parks department.
The fund balance in the Community Center Fund decreased $187,125 (78%) to
$52,357 due to operating impacts from closures in response to the COVID-19
pandemic. The closures also caused charges for services to decrease $864,090
(63%) to $496,912 in 2020. Expenditures decreased $570,698 (26%) to
$-
$1
$2
$3
$4
$5
$6
$7
$8
Water Utility Sewage Utility Stormwater Liquor Fiber Optics Deputy
RegistrarMillionsProgram Revenues and Expenses -
Business-Type Activities
Program Expenses Program Revenues
15
Management’s Discussion and Analysis CITY OF MONTICELLO
$1,623,151 due to layoffs and reductions in spending. The Community Center’s
roof needed repairs, which was funded by a transfer in from the Liquor Fund.
The fund balance in Economic Development Authority (EDA) Fund decreased
$794,559 (11%) to $6,518,705. The assigned fund balance, which is available
for general EDA activity, equaled $4,611,335 at year-end. Land held for resale
increased by $591,000 (21%) with the acquisition of three properties and a
decrease in value of one property. The EDA received $355,080 in property tax
revenue and $707,824 in tax increments in 2020. At year-end, the restricted
$1,904,184 portion of the fund balance is attributable to tax increment districts
and loan programs.
The fund balance in the Debt Service Fund decreased $517,029 (28%) to
$1,304,532. This planned fund balance decrease reflects prior year
accumulation of resources to make scheduled bond payments and the partial
early redemption of the 2011A refunding bonds on February 1, 2020. Special
assessment revenue increased $95,691 (26%) to $469,028 due to 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 $1,957,195 (13%) to $17,157,596. Proceeds from the 2020A
$2,155,000 general obligation bond issue are accounted for in this fund and
used to finance capital project costs related to the 2020 Street Improvements
project. The project was under budget, and, therefore, the fund has $820,516 of
restricted fund balance from unspent bond proceeds.
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 $12,467 (1%). Utility employee
personal service costs are divided between the Water Fund and Sewage Fund
based on activity. The Water Fund operating revenues increased $241,503
(19%) with an increase in consumption and new state connection fee charge.
The fund’s net position decreased $158,873 (1%) to $13,781,749 due to a
$900,000 transfer out to the Capital Projects fund for a future new Public Works
facility. Depreciation expense for the fund totaled $513,484.
Sewage Fund expenses increased $64,134 (2%) and operating revenues
increased $115,498 (5%). The 2020 capital contributions of $875,660 were from
sewer access and trunk charges. The fund’s net position increased $611,431
(3%) to $23,070,466. Depreciation expense for the fund totaled $1,220,725.
The Stormwater Fund was established in 2019. Stormwater operating expenses
were $658,771 in 2020 and operating revenues were $241,873, an increase of
$180,116 (292%). The fund’s net position decreased $83,233 (1%) to
$6,435,141. Depreciation expense for the fund totaled $520,495.
The Liquor Fund’s net position increased $424,933 (81%) to $947,741 despite
$660,000 of transfers out to the Community Center and the Park and Pathways
nonmajor governmental fund. Liquor and related product sales increased
$1,030,802 (16%) to $7,404,955, exceeding the $7 million threshold for the first
time. The increase in sales was mainly due to the closure of local bars and
restaurants during the COVID-19 pandemic Gross profit increased $246,015
(15%) to $1,902,727. Operating expenses increased $19,434 (2%) to $885,605,
and depreciation expense for the fund totaled $33,591.
The Fiber Optics Fund’s net position decreased $115,205 (1%) to $12,349,665.
The fund’s 2020 charges for services increased $52,581 (3%) to $1,846,734.
Excluding depreciation, the operating income increased to $163,355 in 2020.
Depreciation expense for the fund totaled $374,624. The city contracted for
FiberNet operations management in July 2016.
The Deputy Registrar Fund (DMV) net position increased $335,901 (20%) to
$1,975,799. Charges for services increased $12,922 (2%) to $801,502 and
operating expenses increased $62,233 (13%) to $528,732. Depreciation for the
fund totaled $8,178. The DMV processed 127,128 transactions, a 9% decrease
over the prior year. The DMV transitioned to Minnesota’s Licensing and Vehicle
Registration System (MNLARS) system in 2017, but that system was flawed, so
the DMV transitioned to a new system, MNDrive, in November 2020. Due to the
difficulty of operating MNLARS, the city received a $165,387 grant from the
State of Minnesota in 2019 to help offset the costs of operating MNLARS.
Other factors of the changes in income from operations have previously been
discussed in the government-wide financial analysis of business-type activities.
GENERAL FUND BUDGETARY HIGHLIGHTS
During the year, there were no amendments to the budget. General Fund
revenues and other financing sources totaled $9,790,059 and exceeded budget
by 887,059 (10%). Licenses and permits, intergovernmental revenues, and
other revenues, were $114,169 (28%), $340,450 (86%), and $368,983 (588%)
higher than budget, respectively. Licenses and permits include building permits,
intergovernmental revenues include grants from other governmental entities,
16
Management’s Discussion and Analysis CITY OF MONTICELLO
and other revenues include donations and solar investment rebates. These
revenues can be difficult to predict, and are, therefore, budgeted conservatively.
General Fund expenditures totaled $8,827,074 and were $75,926 (1%) less
than budget. Other financing uses consisted of unbudgeted transfers out of
$1,000,000 in order to follow the General Fund balance policy of 60-75% of next
year’s budgeted expenditures. While unbudgeted solar investment and COVID-
19 pandemic related expenditures caused spending over budget, conservative
spending, most notably in the Streets and alleys reporting unit, allowed for
overall spending under budget.
The General government function exceeded budget due to unbudgeted solar
investment program expenditures that are offset by solar investment rebate
revenues over budget. The public safety function exceeded budget because of
unbudgeted expenditures in response to the COVID-19 pandemic that were
offset by federal intergovernmental revenues. Within the expenditure functions,
eight of thirty-two reporting units exceeded budget.
The General Fund year end fund balances for the past ten years 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 on December 31, 2020 totaled $112,399,122 (net of
accumulated depreciation). This investment in capital assets includes land,
construction in progress, buildings and systems, including infrastructure, and
machinery and equipment, including intangible assets.
Major governmental activities capital assets changes: completion of construction
of the fire station, purchase of a fire ladder truck, the 2020 Street Improvement
project, pedestrian improvement projects, building upgrades, and equipment
additions. Business-type capital assets include HVAC upgrades and construction
of the Maple Street storm drain. The total decrease from the prior fiscal year is
1%; governmental activities increased 1.4% and business-type activities
decreased 4.5%.
Additional information on the city’s capital assets can be found in the notes to the
financial statements on pages 42-43.
Year Amount
2011 4,410,637$
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
2020 6,640,235
2020 2019 2020 2019 2020 2019
Land 10,556,829$ 11,020,584$ 786,010$ 730,695$ 11,342,839$ 11,751,279$
Construction in progress 2,575,132 7,339,275 253,761 - 2,828,893 7,339,275
Buildings and systems 102,018,474 93,970,808 104,641,807 104,383,594 206,660,281 198,354,402
Machinery and equipment 7,947,245 6,478,680 3,309,584 3,498,584 11,256,829 9,977,264
Less: Accumulated depreciation (55,132,276) (51,807,060) (64,557,444) (62,075,346) (119,689,720) (113,882,406)
Net total 67,965,404$ 67,002,287$ 44,433,718$ 46,537,527$ 112,399,122$ 113,539,814$
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, special assessment bonds, tax abatement bonds, and a
Public Facilities Authority (PFA) revenue note, totaled $31,321,000 at
December 31, 2020. In 2020, the city issued $2,155,000 in general obligation
bonds (governmental activities) to finance capital project costs related to the
2020 Street Improvement project. Business-type long-term debt decreased with
regularly scheduled payments. All other changes are the result of the partial
early redemption of the 2011A 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
Shortly after the fiscal year began, the Novel Coronavirus (COVID-19)
pandemic caused significant volatility in economic conditions. The overall
long-term effect of the pandemic is still unknown, but the city expects
manageable loss of revenue and continues to look for ways to cut
unnecessary spending as needed to ensure continued sound financial
standing.
The unemployment rate for the Wright County, Minnesota area for
December 31, 2020 was 4.4%, which is lower than the state average (4.9%)
and well below the national average (6.5%). The figures are elevated due
to the COVID-19 pandemic. It is unclear when the pandemic will end.
The long-term state and local economic outlook are currently unknown,
also due to the COVID-19 pandemic. However, new commercial and
residential development continued to grow at a sustainable pace in 2020,
and have not indicated a significant downward trend yet in 2021.
The occupancy rate of the city’s business district has remained constant
over the last few years and new commercial construction had recently
grown. The COVID-19 pandemic has not caused any permanent local
business closures in Monticello.
The prospects for continued residential and large commercial growth in
2021 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.
2020 2019 2020 2019 2020 2019
General obligation bonds 10,770,000$ 11,600,000$ 1,720,000$ 1,910,000$ 12,490,000$ 13,510,000$
Certificate of indebtedness - 70,000 - - - 70,000
Special assessment bonds 9,290,000 9,200,000 - - 9,290,000 9,200,000
Tax abatement bonds 7,845,000 8,390,000 - - 7,845,000 8,390,000
Public Facilities Authority revenue note - - 1,696,000 1,800,000 1,696,000 1,800,000
Total 27,905,000$ 29,260,000$ 3,416,000$ 3,710,000$ 31,321,000$ 32,970,000$
Activities Activities Total
Governmental Business-Type
18
BASIC STATEMENTS
CITY OF MONTICELLO
Statement of Net Position
December 31, 2020
Governmental Business-type
Activities Activities Total
ASSETS
Cash and investments 34,171,867$ 17,065,962$ 51,237,829$
Receivables
Unremitted taxes 73,214 - 73,214
Deliquent taxes 48,375 - 48,375
Unremitted special assessments 33,658 44 33,702
Deliquent special assessments 3,451 13,248 16,699
Deferred special assessments 4,537,022 939,419 5,476,441
Accrued interest 97,070 - 97,070
Accounts 268,290 691,044 959,334
Due from other governmental units 2,256,605 78,907 2,335,512
Internal balances (88,906) 88,906 -
Inventory - 426,994 426,994
Prepaid items 173,203 126,800 300,003
Notes receivable 351,886 - 351,886
Land held for resale 4,962,552 - 4,962,552
Net pension asset - FRA 398,991 - 398,991
Capital assets
Nondepreciable 13,131,961 1,039,771 14,171,732
Depreciable, net 54,833,443 43,393,947 98,227,390
TOTAL ASSETS 115,252,682 63,865,042 179,117,724
DEFERRED OUTFLOWS OF RESOURCES
Deferred other post-employment benefits resources 2,559 1,206 3,765
Deferred pension resources 307,339 80,542 387,881
TOTAL DEFERRED OUTFLOWS OF RESOURCES 309,898 81,748 391,646
LIABILITIES
Accounts and contracts payable 434,244 489,816 924,060
Accrued interest payable 41,892 10,811 52,703
Other accrued liabilities 191,331 5,968 197,299
Due to other governmental units 25,641 257,279 282,920
Unearned revenue 70,317 - 70,317
Escrow deposits 512,220 - 512,220
Long-term liabilities
Due within one year 2,878,570 350,113 3,228,683
Due in more than one year 27,998,196 4,104,191 32,102,387
TOTAL LIABILITIES 32,152,411 5,218,178 37,370,589
DEFERRED INFLOWS OF RESOURCES
Deferred other post-employment benefits resources 92,058 43,322 135,380
Deferred pension resources 421,513 35,823 457,336
Deferred MSA state aid and grants 3,946,598 - 3,946,598
TOTAL DEFERRED INFLOWS OF RESOURCES 4,460,169 79,145 4,539,314
NET POSITION
Net investment in capital assets 40,836,892 41,000,179 81,837,071
Restricted for
Debt service 2,565,047 - 2,565,047
Economic development 2,324,270 - 2,324,270
Perpetual cemetery care 54,407 - 54,407
Tax increment 507,717 - 507,717
Unrestricted 32,661,667 17,649,288 50,310,955
TOTAL NET POSITION 78,950,000$ 58,649,467$ 137,599,467$
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, 2020
Operating Capital
Charges for Grants and Grants and Governmental Business-type
Expenses Services Contributions Contributions Activities Activities Total
Governmental activities
General government 2,335,614$ 523,919$ 19,285$ -$ (1,792,410)$ -$ (1,792,410)$
Public safety 2,658,246 799,227 220,246 - (1,638,773) - (1,638,773)
Public works 4,777,282 156,657 202,860 1,289,990 (3,127,775) - (3,127,775)
Sanitation 681,948 522,088 20,944 - (138,916) - (138,916)
Recreation and culture 3,289,716 652,729 - - (2,636,987) - (2,636,987)
Economic development 1,914,825 10,915 - - (1,903,910) - (1,903,910)
Interest and fiscal charges 756,546 - - - (756,546) - (756,546)
Total governmental activities 16,414,177 2,665,535 463,335 1,289,990 (11,995,317) - (11,995,317)
Business-type activities
Water 1,212,656 1,541,694 - 310,155 - 639,193 639,193
Sewage 2,960,153 2,559,354 - 875,660 - 474,861 474,861
Stormwater 658,771 241,873 - 302,524 - (114,374) (114,374)
Liquor 6,395,558 7,405,960 - - - 1,010,402 1,010,402
Fiber Optics 2,063,712 1,851,845 - - - (211,867) (211,867)
Deputy Registrar 538,625 801,502 - - - 262,877 262,877
Total business-type activities 13,829,475 14,402,228 - 1,488,339 - 2,061,092 2,061,092
Total primary government 30,243,652$ 17,067,763$ 463,335$ 2,778,329$ (11,995,317)2,061,092 (9,934,225)
General Revenues
Property taxes 10,874,313 - 10,874,313
Tax increments 707,824 - 707,824
Franchise taxes 418,030 - 418,030
Unrestricted grants and contributions 886,544 151,794 1,038,338
Unrestricted investment earnings 666,325 332,938 999,263
Transfers
Operating 1,560,000 (1,560,000) -
Total general revenues and transfers 15,113,036 (1,075,268)14,037,768
Change in Net Position 3,117,719 985,824 4,103,543
Net Position, January 1 75,832,281 57,663,643 133,495,924
Net Position, December 31 78,950,000$ 58,649,467$ 137,599,467$
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 7,233,133$ 2,561$ 2,881,239$ 1,274,149$ 17,428,266$ 4,147,927$ 32,967,275$
Receivables
Unremitted taxes 70,847 - 2,367 - - - 73,214
Delinquent taxes 45,110 - 3,265 - - - 48,375
Unremitted special assessments - - - 33,205 453 - 33,658
Delinquent special assessments - - - 1,587 1,864 - 3,451
Deferred special assessments 437 - - 1,300,820 3,223,761 12,004 4,537,022
Accrued interest 97,070 - - - - - 97,070
Accounts 148,385 19,626 525 - - 99,724 268,260
Due from other governmental units 16,230 37,223 - - 2,203,152 - 2,256,605
Prepaid items 145,603 23,482 3,186 - - 932 173,203
Notes receivable - - 183,693 - - 168,193 351,886
Land held for resale - - 3,466,370 - 1,496,182 - 4,962,552
TOTAL ASSETS 7,756,815$ 82,892$ 6,540,645$ 2,609,761$ 24,353,678$ 4,428,780$ 45,772,571$
LIABILITIES
Accounts and contracts payable 304,683$ 4,447$ 11,696$ 2,822$ 23,767$ 55,837$ 403,252$
Other accrued liabilities 175,806 15,525 - - - - 191,331
Due to other governmental units 24,304 986 259 - 92 - 25,641
Unearned revenue 60,740 9,577 - - - - 70,317
Escrow deposits 505,500 - 6,720 - - - 512,220
Total liabilities 1,071,033 30,535 18,675 2,822 23,859 55,837 1,202,761
DEFERRED INFLOWS OF RESOURCES
Unavailable revenue - property taxes 45,110 - 3,265 - - - 48,375
Unavailable revenue - special assessments 437 - -1,302,407 3,225,625 12,004 4,540,473
Unavailable revenue - MSA state aid and grants - - - - 3,946,598 - 3,946,598
Total Deferred Inflows of Resources 45,547 - 3,265 1,302,407 7,172,223 12,004 8,535,446
FUND BALANCES
Nonspendable 145,603 23,482 3,186 - - 932 173,203
Restricted - - 1,904,184 1,304,532 820,516 978,945 5,008,177
Assigned - 28,875 4,611,335 - 16,337,080 3,381,062 24,358,352
Unassigned 6,494,632 - - - - - 6,494,632
Total fund balance 6,640,235 52,357 6,518,705 1,304,532 17,157,596 4,360,939 36,034,364
TOTAL LIABILITIES, DEFERRED INFLOWS
OF RESOURCES, AND FUND BALANCES 7,756,815$ 82,892$ 6,540,645$ 2,609,761$ 24,353,678$ 4,428,780$ 45,772,571$
The notes to the financial statements are an integral part of this statement.
December 31, 2020
22
CITY OF MONTICELLO
Reconciliation of the Governmental Funds Balance Sheet
to the Statement of Net Position
December 31, 2020
Amounts reported for governmental activities in the statement of net position are different because:
Total fund balances - governmental funds 36,034,364$
Long-term assets from pensions reported in governmental activities are not financial resources and, therefore, are not reported as
assets in the funds.398,991
Capital assets used in governmental activities are not financial resources and, therefore, are not reported in the funds.
Land 10,556,829$
Construction in progress 2,575,132
Buildings and systems 102,018,474
Machinery and equipment 5,449,088
Accumulated depreciation (54,246,935)66,352,588
Governmental funds do not report long-term amounts related to other post-employment benefits and pensions.
Deferred outflows of resources - OPEB 2,559$
Deferred outflows of resources - pensions 307,339
Deferred inflows of resources - OPEB (92,058)
Deferred inflows of resources - pensions (421,513) (203,673)
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 (27,665,000)$
Unamortized bond premiums (44,028)
Other post-employment benefits liability (96,068)
Net pension liability - PERA (2,520,012) (30,325,108)
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 2,234,508$
Less internal services net position allocated to to business-type activities (88,906) 2,145,602
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.4,588,848
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.(41,612)
Net position of governmental activities 78,950,000$
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, 2020
401101226213Linked300 Linked
Economic 400 Total Total
Community Development Debt Capital Nonmajor Governmental
General Center Authority Service Projects Funds Funds
Revenues
Property taxes 6,797,640$ 417,000$ 355,080$ 2,939,987$ 350,604$ -$ 10,860,311$
Tax increments - - 707,824 - - - 707,824
Franchise taxes 194,000 - - - 33,694 190,336 418,030
Special assessments 166 - - 469,028 162,789 1,033 633,016
Licenses and permits 521,369 - - - - - 521,369
Intergovernmental 737,650 42,827 185,000 - 675,751 15,000 1,656,228
Charges for services 936,731 496,912 - - - 40,884 1,474,527
Fines and forfeitures 31,852 - - - - - 31,852
Investment earnings 138,968 1,084 69,099 15,864 329,493 86,938 641,446
Interest on loans - - 3,739 - - 4,896 8,635
Other revenues 431,683 53,203 2,280 - 4,548 29,395 521,109
Total revenues 9,790,059 1,011,026 1,323,022 3,424,879 1,556,879 368,482 17,474,347
Expenditures
Current
General government 2,170,661 - - - - - 2,170,661
Public safety 2,743,954 - - - - - 2,743,954
Public works 1,899,315 - - - - - 1,899,315
Sanitation 681,948 - - - - - 681,948
Recreation and culture 1,331,196 1,255,578 - - - 27,321 2,614,095
Economic development - - 1,917,581 - - 392 1,917,973
Capital outlay
Public safety - - - - 2,343,036 - 2,343,036
Public works - - - - 1,671,808 621 1,672,429
Recreation and culture - 367,573 - - 21,195 506,656 895,424
Debt service
Principal - - - 3,385,000 - - 3,385,000
Interest and fiscal charges - - - 756,908 - - 756,908
Bond issuance costs - - - - 53,475 - 53,475
Total expenditures 8,827,074 1,623,151 1,917,581 4,141,908 4,089,514 534,990 21,134,218
Excess (deficiency) of revenues over expenditures 962,985 (612,125) (594,559) (717,029) (2,532,635) (166,508) (3,659,871)
Other financing sources (uses)
Long-term debt issued - - - - 2,155,000 - 2,155,000
Premium on long-term debt issued - - - - 101,280 - 101,280
Sale of capital assets - - - - 333,550 - 333,550
Transfers in - 425,000 - 200,000 1,900,000 235,000 2,760,000
Transfers out (1,000,000) - (200,000) - - - (1,200,000)
Total other financing sources (uses)(1,000,000) 425,000 (200,000) 200,000 4,489,830 235,000 4,149,830
Net change in fund balances (37,015) (187,125) (794,559) (517,029) 1,957,195 68,492 489,959
Fund balance at beginning of year 6,677,250 239,482 7,313,264 1,821,561 15,200,401 4,292,447 35,544,405
Fund balance at end of year 6,640,235$ 52,357$ 6,518,705$ 1,304,532$ 17,157,596$ 4,360,939$ 36,034,364$
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, 2020
Amounts reported for governmental activities in the Statement of Activities are different because:
Net change in fund balances - governmental funds 489,959$
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 4,533,624$
Capital contributions 25,549
Disposals (466,855)
Depreciation (3,432,841) 659,477
(2,155,000)
3,385,000
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.
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.
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.
Premium on long-term debt issued (101,280)$
Amortization of bond premiums 126,439
Change in total OPEB liability and deferred outflows/inflows of resources 18,960
Change accrued interest payable 38,846 82,965
Long-term pension activity is not reported in governmental funds
Pension revenue from state contributions 6,763
Pension expense 254,494
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 14,002$
Special assessments 143,188
Notes receivable (27,500) 129,690
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 235,241$
Subtract internal service fund activity allocated to business-type activities 29,130 264,371
Change in net position of governmental activities 3,117,719$
The notes to the financial statements are an integral part of this statement.
25
CITY OF MONTICELLO
Statement of Net Position
Proprietary Funds
December 31, 2020
Governmental
Activities -
265 262 263 609 656 217 Linked
601 602 652 Deputy Internal
Water Sewage Stormwater Liquor Fiber Optics Registrar Totals Service Funds
ASSETS
Current assets
Cash and investments 4,895,930$ 6,817,212$ 1,226,361$ 1,034,277$ 868,359$ 2,223,823$ 17,065,962$ 1,204,592$
Receivables
Unremitted special assessments 44 - - - - - 44 -
Deliquent special assessments 13,248 - - - - - 13,248 -
Deferred special assessments 365,066 349,056 225,297 - - - 939,419 -
Accounts 141,044 385,961 45,869 1,605 116,481 84 691,044 30
Due from other governmental units - - - - - 78,907 78,907 -
Inventory - - - 426,994 - - 426,994 -
Prepaid items 19,809 91,126 3,806 9,230 1,000 1,829 126,800 -
Total current assets 5,435,141 7,643,355 1,501,333 1,472,106 985,840 2,304,643 19,342,418 1,204,622
Noncurrent assets
Capital assets
Land 208,143 516,952 55,315 5,600 - - 786,010 -
Buildings and systems 21,273,202 48,464,534 18,899,098 848,997 15,067,875 88,101 104,641,807 -
Machinery and equipment 302,728 2,526,593 - 133,862 305,726 40,675 3,309,584 2,498,157
Construction in progress - - 253,761 - - - 253,761 -
Total capital assets 21,784,073 51,508,079 19,208,174 988,459 15,373,601 128,776 108,991,162 2,498,157
Less accumulated depreciation (13,222,416) (32,427,749) (14,252,678) (874,801) (3,718,352) (61,448) (64,557,444) (885,341)
Total capital assets (net)8,561,657 19,080,330 4,955,496 113,658 11,655,249 67,328 44,433,718 1,612,816
TOTAL ASSETS 13,996,798 26,723,685 6,456,829 1,585,764 12,641,089 2,371,971 63,776,136 2,817,438
DEFERRED OUTFLOWS OF RESOURCES
Deferred other post-employment benefits resources 264 162 113 441 - 226 1,206 -
Deferred pension resources 12,390 15,489 - 34,076 - 18,587 80,542 -
TOTAL DEFERRED OUTFLOWS OF RESOURCES 12,654 15,651 113 34,517 - 18,813 81,748 -
(continued)
Business-Type Activities – Enterprise Funds
26
CITY OF MONTICELLO
Statement of Net Position
Proprietary Funds
December 31, 2020 (Continued)
Governmental
Activities -
Deputy Internal
Water Sewage Stormwater Liquor Fiber Optics Registrar Totals Service Funds
LIABILITIES
Current liabilities
31,512$ 7,348$ 13,502$ 144,784$ 291,424$ 1,246$ 489,816$ 30,992$
- 10,811 - - - - 10,811 280
4,000 - - 1,968 - - 5,968 -
12,327 1,974 - 74,450 - 168,528 257,279 -
- 300,000 - -- -300,000 60,000
Accounts and contracts payable
Accrued interest payable
Other accrued liabilities
Due to other governmental units
Bonds and notes payable - current
Compensated absences due within one year 8,165 8,165 - 23,506 - 10,277 50,113 184,805
Total current liabilities 56,004 328,298 13,502 244,708 291,424 180,051 1,113,987 276,077
Noncurrent liabilities
- 3,133,539 - - - - 3,133,539 180,000
10,608 10,608 - 13,079 - 5,741 40,036 126,853
9,889 9,889 4,238 12,715 - 8,477 45,208 -
Bonds and notes payable - net current portion
Compensated absences payable
Total OPEB liability
Net pension liability 136,215 170,272 - 374,595 - 204,326 885,408 -
Total noncurrent liabilities 156,712 3,324,308 4,238 400,389 - 218,544 4,104,191 306,853
TOTAL LIABILITIES 212,716 3,652,606 17,740 645,097 291,424 398,595 5,218,178 582,930
DEFERRED INFLOWS OF RESOURCES
Deferred other post-employment benefits resources 9,477 9,375 4,061 12,286 - 8,123 43,322 -
Deferred pension resources 5,510 6,889 - 15,157 - 8,267 35,823 -
TOTAL DEFERRED OUTFLOWS OF RESOURCES 14,987 16,264 4,061 27,443 - 16,390 79,145 -
NET POSITION
Net investment in capital assets 8,561,657 15,646,791 4,955,496 113,658 11,655,249 67,328 41,000,179 1,372,816
Unrestricted 5,220,092 7,423,675 1,479,645 834,083 694,416 1,908,471 17,560,382 861,692
TOTAL NET POSITION 13,781,749$ 23,070,466$ 6,435,141$ 947,741$ 12,349,665$ 1,975,799$ 58,560,561 2,234,508$
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 88,906
Net position of business-type activities (page 19)58,649,467$
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, 2020
Governmental
Activities -265 262 263 609 656 217 Linked
601 602 652 Deputy Internal
Water Sewage Stormwater Liquor Fiber Optics Registrar Totals Service Funds
Sales and cost of sales
Net sales 7,404,955$ 7,404,955$
Cost of sales (5,502,228) (5,502,228)
Gross profit 1,902,727 1,902,727
Operating revenues
Charges for services 1,468,890$ 2,558,601$ 241,873$ - 1,846,734$ 800,954$ 6,917,052 562,341$
Other 72,804 753 - 1,005 5,111 548 80,221 90
Total operating revenues 1,541,694 2,559,354 241,873 1,005 1,851,845 801,502 6,997,273 562,431
Operating expenses
Personal services 250,345 354,812 127,167 628,667 4,086 466,262 1,831,339 6,541
Materials and supplies 104,801 154,593 641 18,320 111,721 7,109 397,185 110,502
Other services and charges 339,048 1,153,829 10,468 205,027 1,572,683 47,183 3,328,238 235,292
Depreciation 513,484 1,220,726 520,495 33,591 374,624 8,178 2,671,098 198,954
Total operating expenses 1,207,678 2,883,960 658,771 885,605 2,063,114 528,732 8,227,860 551,289
Operating income (loss)334,016 (324,606)(416,898) 1,018,127 (211,269) 272,770 672,140 11,142
Nonoperating revenues (expenses)
Investment earnings 95,694 129,558 30,789 22,822 14,001 40,074 332,938 24,879
Intergovernmental revenues 1,262 1,076 352 43,984 82,063 23,057 151,794 209,388
Interest expense - (70,257) - - - - (70,257) (10,168)
Total Nonoperating revenes (expenses)96,956 60,377 31,141 66,806 96,064 63,131 414,475 224,099
Income (loss) before capital contributions
and transfers 430,972 (264,229) (385,757) 1,084,933 (115,205) 335,901 1,086,615 235,241
Capital contributions 310,155 875,660 302,524 - - - 1,488,339 -
Transfers out (900,000) - - (660,000) - - (1,560,000) -
Change in net position (158,873) 611,431 (83,233) 424,933 (115,205) 335,901 1,014,954 235,241
Net Position, January 1 13,940,622 22,459,035 6,518,374 522,808 12,464,870 1,639,898 1,999,267
Net Position, December 31 13,781,749$ 23,070,466$ 6,435,141$ 947,741$ 12,349,665$ 1,975,799$ 2,234,508$
Adjustment to reflect the consolidation of internal service fund related to enterprise funds (29,130)
Change in net position of business-type activities (page 21)985,824$
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, 2020
Governmental
Activities -
265/601 262/602 652 609 656 217 Linked
601 602 Deputy Internal
Water Sewage Stormwater Liquor Fiber Optics Registrar Totals Service Funds
Cash flows from operating activities
Cash received from customers and users 1,577,613$ 2,484,302$ 203,672$ 7,403,700$ 1,819,710$ 825,480$ 14,314,477$ -$
Cash from interfund services provided - - - - - - - 562,431
Cash paid to suppliers for goods and services (411,315) (1,314,105) (11,173) (5,678,126) (1,545,323) (38,304) (8,998,346) (323,543)
Cash paid to employees (256,795) (363,182) (118,981) (655,716) (4,086) (476,971) (1,875,731) -
Cash paid to other funds for services provided (8,743) (10,424) - (13,566) (1,050) (17,374) (51,157) -
Net cash provided by operating activities 900,760 796,591 73,518 1,056,292 269,251 292,831 3,389,243 238,888
Cash flows from noncapital financing activities
Transfers to other funds (900,000) - - (660,000) - - (1,560,000) -
Intergovernmental revenues 1,262 1,076 352 43,984 82,063 23,057 151,794 209,388
Net cash provided (used) by noncapital financing activities (898,738) 1,076 352 (616,016) 82,063 23,057 (1,408,206) 209,388
Cash flows from capital and related financing activities
Capital contributions 103,287 547,155 56,988 - - - 707,430 -
Acquisition of capital assets - - (377,747) (41,740) (171,210) - (590,697) (502,594)
Principal paid on long-term debt - (294,000) - - - - (294,000) (125,000)
Interest and fiscal charges paid on long-term debt - (72,972) - - - - (72,972) (10,341)
Net cash provided (used) by capital and related
financing activities 103,287 180,183 (320,759) (41,740) (171,210) - (250,239) (637,935)
Cash flows from investing activities
Interest on investments 95,694 129,558 30,789 22,822 14,001 40,074 332,938 24,879
Net increase (decrease) in cash and cash equivalents 201,003 1,107,408 (216,100) 421,358 194,105 355,962 2,063,736 (164,780)
Cash and cash equivalents, January 1 4,694,927 5,709,804 1,442,461 612,919 674,254 1,867,861 15,002,226 1,369,372
Cash and cash equivalents, December 31 4,895,930$ 6,817,212$ 1,226,361$ 1,034,277$ 868,359$ 2,223,823$ 17,065,962$ 1,204,592$
Business-Type Activities – Enterprise Funds
(continued)
30
CITY OF MONTICELLO
Statement of Cash Flows
Proprietary Funds
For the Year Ended December 31, 2020 (Continued)
Governmental
Activities -
Deputy Internal
Water Sewage Stormwater Liquor Fiber Optics Registrar Totals Service Funds
Reconciliation of operating income (loss) to net cash
provided (used) by operating activities
Operating income (loss)334,016$ (324,606)$ (416,898)$ 1,018,127$ (211,269)$ 272,770$ 672,140$ 11,142$
Adjustments to reconcile operating income (loss) to
net cash provided (used) by operating activities
Depreciation 513,484 1,220,726 520,495 33,591 374,624 8,178 2,671,098 198,954
OPEB expense 4,053 5,876 4,238 (4,972) - (1,005) 8,190 -
(Increase) decrease in assets
Special assessments receivable 52,099 694 - - - - 52,793 -
Accounts receivable (12,980) (75,746) (38,201) (1,605) (32,135) (84) (160,751) -
Due from other governmental units - - - - - (14,362) (14,362) -
Inventory - - - 20,364 - -20,364 -
Prepaid items (6,387) (7,627) (64) (398) - (207) (14,683) -
(Increase) decrease in deferred outflows
Deferred other post-employment benefits resources (254) (264) (113) 7 - 9 (615) -
Deferred pension resources (191) (239) - (526) - (287) (1,243) -
Increase (decrease) in liabilities
Accounts and contracts payable 26,296 (7,032) - 3,320 138,031 (1,179) 159,436 22,251
Other liabilities (3,200) - - (655) - - (3,855) -
Due to other governmental units 3,882 (1,448) - 10,597 - 38,424 51,455 -
Compensated absences (327) (327) - 2,323 - 2,326 3,995 6,541
Net pension liability 11,266 14,083 - 30,983 - 16,900 73,232 -
Increase (decrease) in deferred inflows
Deferred other post-employment benefits resources (1,895) (3,622) 4,061 (2,335) - - (3,791) -
Deferred pension resources (19,102) (23,877) - (52,529) - (28,652) (124,160) -
Net cash provided (used) by operating activities 900,760$ 796,591$ 73,518$ 1,056,292$ 269,251$ 292,831$ 3,389,243$ 238,888$
Schedule of noncash investing, capital and
financing activities:
Net amortization of bond premium (discount)-$ 1,986$ -$ -$ -$ -$ 1,986$ -$
Capital assets purchased on account -$ -$ 13,502$ -$ (92,225)$ -$ (78,723)$ -$
Capital contributions -$ -$ 55,315$ -$ -$ -$ 55,315$ -$
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, 2020 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) is a legally separate
entity 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. Management of the city has
complete operational responsibility of the EDA’s activities, the City Council
reviews and approves the tax levy and all expenditures for the EDA, and the
EDA provides services entirely to the city. 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, 2020 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, restrictions, 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.
Stormwater Fund – The Stormwater (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, 2020 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 based on
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
a 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 price as outlined in Note 2.
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.
Deferred inflows of resources in governmental activities are susceptible to full
accrual on the government-wide financial statements.
35
Notes to the Financial Statements – December 31, 2020 CITY OF MONTICELLO
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. Unremitted special assessments are amounts collected by Wright
County, but not paid to the city before year-end.
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 2020.
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.
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
36
Notes to the Financial Statements – December 31, 2020 CITY OF MONTICELLO
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
Useful
Life
(Years)
Land $1 N/A
Land improvements $50,000 10 – 20
Building/building improvements $20,000 12 – 40
Primary infrastructure and utility $75,000 10 – 40
Secondary infrastructure $25,000 10 – 40
Equipment $10,000 5 – 20
Software and non-tangible $10,000 5 – 20
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.
Capital assets are depreciated using the straight-line method over their
estimated useful lives shown in the previous table. 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. 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. All new full-time employees receive
PTO, while two 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 upon termination of employment. 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 hourly rate at the time of
severance.
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.
37
Notes to the Financial Statements – December 31, 2020 CITY OF MONTICELLO
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. 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.
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 three sources: property taxes, special assessments,
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.
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.
38
Notes to the Financial Statements – December 31, 2020 CITY OF MONTICELLO
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 page
65, expenditures in the Economic Development Authority special revenue fund
were over budget in 2020.
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.
NOTE 2. CASH, CASH EQUIVALENTS, AND INVESTMENTS
A. Components of Cash and Investments
Cash and investments at year-end consist of the following:
Deposits 2,861,670$
Investments 48,367,734
Cash on hand 8,425
Total cash and investments – Statement of Net Position 51,237,829$
39
Notes to the Financial Statements – December 31, 2020 CITY OF MONTICELLO
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 $2,861,670
while the balance on bank records was $3,099,911. 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, 2020.
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
40
Notes to the Financial Statements – December 31, 2020 CITY OF MONTICELLO
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, 2020:
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 -$ 457,192$ 299,883$ -$ 757,075$ 1.6%
Federal Agriculture Mortgage
Corporation N/R N/A Level 2 - - 826,926 - 826,926 1.7%
Federal Home Loan Bank AA+ S&P Level 2 - 548,945 - 432,858 981,803 2.0%
Federal Home Loan Bank AAA Moody's Level 2 250,320 535,100 - 785,420 1.6%
Negotiable certificates of deposit N/R N/A Level 2 2,542,494 9,961,743 3,935,489 - 16,439,726 34.1%
Local government securities AAA S&P Level 2 - - - 501,740 501,740 1.0%
Local government securities AA S&P Level 2 - 591,638 - 201,464 793,102 1.6%
Local government securities Aaa Moody’s Level 2 - -- 1,002,870 1,002,870 2.1%
Local government securities A Moody’s Level 2 167,609 315,336 - - 482,945 1.0%
Investment pools and mutual funds N/R N/A Amortized Cost 25,678,847 - - - 25,678,847 53.1%
Investment pools and mutual funds AAA S&P Amortized Cost 117,280 - - - 117,280 0.2%
Total investments 28,506,230$ 12,125,174$ 5,597,398$ 2,138,932$ 48,367,734$ 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, 2020 CITY OF MONTICELLO
NOTE 3. CAPITAL ASSETS
Capital asset activities for the year end December 31, 2020 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 11,020,584$ 3,100$ (466,855)$ -$ 10,556,829$ -$ 10,556,829$ -$ 3,100$
Construction in progress 7,339,275 4,344,927 - (9,109,070) 2,575,132 - 2,575,132 - 4,344,927
Total capital assets, not depreciated 18,359,859 4,348,027 (466,855) (9,109,070) 13,131,961 - 13,131,961 - 4,348,027
Depreciable capital assets:
Buildings and systems 93,970,808 211,146 - 7,836,520 102,018,474 - 102,018,474 - 211,146
Machinery and equipment 6,478,680 502,594 (306,579) 1,272,550 7,947,245 2,498,157 5,449,088 502,594 -
Total capital assets, depreciated 100,449,488 713,740 (306,579) 9,109,070 109,965,719 2,498,157 107,467,562 502,594 211,146
Less accumulated depreciation for:
Buildings and systems (47,183,734) (3,362,511) - - (50,546,245) - (50,546,245) - (3,362,511)
Machinery and equipment (4,623,326) (269,284) 306,579 - (4,586,031) (885,341) (3,700,690) (198,954) (70,330)
Total accumulated depreciation (51,807,060) (3,631,795) 306,579 - (55,132,276) (885,341) (54,246,935) (198,954) (3,432,841)
Net capital assets, depreciated 48,642,428 (2,918,055) - 9,109,070 54,833,443 1,612,816 53,220,627 303,640 (3,221,695)
Total governmental activities 67,002,287$ 1,429,972$ (466,855)$ -$ 67,965,404$ 1,612,816$ 66,352,588$ 303,640$ 1,126,332$
Business-type activities
Nondepreciable capital assets:
Land 730,695$ 55,315$ -$ -$ 786,010$
Construction in progress - 253,761 - - 253,761
Total capital assets, not depreciated 730,695 309,076 - - 1,039,771
Depreciable capital assets:
Buildings and systems 104,383,594 258,213 - - 104,641,807
Machinery and equipment 3,498,584 - (189,000) - 3,309,584
Total capital assets, depreciated 107,882,178 258,213 (189,000) - 107,951,391
Less accumulated depreciation for:
Buildings and systems (60,084,164) (2,545,566) - - (62,629,730)
Machinery and equipment (1,991,182) (125,532)189,000 - (1,927,714)
Total accumulated depreciation (62,075,346) (2,671,098)189,000 - (64,557,444)
Net capital assets, depreciated 45,806,832 (2,412,885)- - 43,393,947
Total business-type activities 46,537,527$ $ (2,103,809)-$ -$ 44,433,718$
42
Notes to the Financial Statements – December 31, 2020 CITY OF MONTICELLO
Depreciation for the year ended December 31, 2020 was charged to
functions/programs as follows:
NOTE 4. COMMITMENTS
The city has awarded contracts for various construction and remodeling projects.
The city’s commitments for uncompleted work on these contracts at December
31, 2020 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. Payments on the contract began in 2020, but amounts vary each month
based on kilowatt-hours produced.
NOTE 5. LONG-TERM LIABILITIES
A. Description
The city has the following types of long-term liabilities outstanding at December
31, 2020:
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.
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 $2,559,354
and principal and interest payments were $242,398 for a percentage
of revenues of 9.47%.
PFA Revenue Note – This note was issued for improvements to the
wastewater treatment plant and is payable primarily from user fees
which benefit from the improvements.
Compensated Absences – The city provides vacation and sick or
paid-time-off (PTO) leave benefits to eligible employees. The liability
will be repaid by the Benefit Accrual fund or respective enterprise fund
for which each employee is employed.
Total OPEB Liability – The city provides post-employment benefits to
certain eligible employees through the city’s OPEB Plan. The liability
will be repaid based on a pay-as-you-go financing requirement from
the General fund or applicable enterprise fund.
Net Pension Liability – City employees participate in one state-wide,
multiple-employer, defined benefit pension plan administered by the
Public Employees Retirement Association (PERA) per Minnesota state
statute. The liability reflects the city’s portion of the total net pension
Governmental activities
General government 36,071$
Public safety 57,660
Public works 2,791,217
Recreation and culture 547,893
Capital assets held by the City’s internal service funds –
charged to the various functions based on usage of assets 198,954
Total depreciation expense – governmental activities 3,631,795$
Business-type activities
Water 513,484$
Sewage 1,220,726
Stormwater 520,495
Liquor 33,591
Fiber Optics 374,624
Deputy Registrar 8,178
Total depreciation expense – business-type activities $ 2,671,098
Amount
Contract Paid Remaining
Project Description Amount To-Date 12/31/2020
Capital projects 2019 Pedestrian
Improvements 364,411 346,190 18,221
Nonmajor
governmental Bertram Park Improvements 1,686,178 1,640,472 45,706
2,050,589$ 1,986,662$ 63,927$
Fund
43
Notes to the Financial Statements – December 31, 2020 CITY OF MONTICELLO
liability of the PERA plan based on a percentage of contributions into the
plan. The liability will be repaid by the General fund or applicable
enterprise fund.
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 4,300,000$
equipment portion 515,000 1.00 - 3.05 12/18/2014 12/15/2024 240,000
2019A General
obligation bonds
CIP portion 5,350,000 2.00 - 2.30 09/18/2019 12/15/2034 5,065,000
equipment portion 1,290,000 2.00 09/18/2019 12/15/2028 1,165,000
Special assessments bonds
2011A General obligation
refunding bonds 10,735,000 2.00 - 3.00 10/19/2011 02/01/2023 385,000
2015B General
obligation bonds 2,605,000 1.50 - 3.00 11/01/2015 12/15/2030 1,830,000
2016A General
obligation bonds 4,900,000 2.00 - 3.00 11/15/2016 12/15/2030 3,155,000
2017A General
obligation bonds 2,040,000 2.00 - 2.50 10/24/2017 12/15/2027 1,475,000
2019A General
obligation bonds 320,000 2.00 09/18/2019 12/15/2028 290,000
2020A General
obligation bonds 2,155,000 0.45 - 2.00 09/09/2020 12/15/2030 2,155,000
Tax abatement bonds
2017A General
obligation bonds 2,960,000 2.00 - 3.00 10/24/2017 12/15/2032 2,450,000
2018A General
obligation bonds 5,000,000 3.00 - 3.38 10/23/2018 12/15/2032 4,420,000
2019A General
obligation bonds 1,040,000 2.00 - 2.20 09/18/2019 12/15/2032 975,000
Premiums on bonds 44,028
Compensated absences payable 311,658
Total OPEB liability 96,068
Net pension liability 2,520,012
Total governmental activities 30,876,766$
Final
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 1,720,000$
Public Facility Authority G.O.
Sewer Revenue Note (2015A)2,214,632 1.06 08/26/2015 08/20/2035 1,696,000
Premiums on bonds 17,539
Compensated absences payable 90,149
Total OPEB liability 45,208
Net pension liability 885,408
Total business-type activities 4,454,304$
January 1,December 31, Due Within
2020 Additions Retirements 2020 One Year
Governmental activities
General obligation bonds 11,600,000$ -$ (830,000)$ 10,770,000$ 885,000$
Certificates of indebtedness 70,000 - (70,000) - -
Special assessment bonds 9,200,000 2,155,000$ (2,065,000) 9,290,000 1,240,000
Tax abatement bonds 8,390,000 - (545,000) 7,845,000 565,000
Add premiums on bonds 69,187 101,280 (126,439) 44,028 -
Compensated absences 305,117 275,254 (268,713) 311,658 184,805
Total OPEB liability 90,631 6,824 (1,387) 96,068 3,765
Net pension liability 2,311,582 499,967 (291,537) 2,520,012 -
Total governmental activities 32,036,517$ 3,038,325$ (4,198,076)$ 30,876,766$ 2,878,570$
Business-type activities
General obligation
revenue bonds 1,910,000$ -$ (190,000)$ 1,720,000$ 195,000$
PFA Revenue Note 1,800,000 - (104,000) 1,696,000 105,000
Add premiums on bonds 19,524 - (1,985) 17,539 -
Compensated absences 86,154 78,504 (74,509) 90,149 50,113
Total OPEB liability 37,018 8,843 (653) 45,208 -
Net pension liability 812,176 175,664 (102,432) 885,408 -
Total business-type activities 4,664,872$ 263,011$ (473,579)$ 4,454,304$ 350,113$
44
Notes to the Financial Statements – December 31, 2020 CITY OF MONTICELLO
C. Minimum Debt Payments
Minimum annual principal and interest payments to maturity for bonds payable are as follows:
D. Legal Debt Margin
Under Minnesota State Statutes, the general obligation bonded debt issued by the
city is subject to a legal debt limitation based on 3 percent of market value. At
December 31, 2020, the city’s legal debt margin was $49,671,142. The statutes
provide that debt issues supported by tax increment, special assessment
revenues or available dedicated reserves are excluded from the total limited debt.
E. 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, 2020, 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 $2,225,000 and mature in 2037. These balances
have reduced through regularly scheduled payments. The outstanding balance
as of December 31, 2020 is undetermined.
F. Pay-As-You-Go Tax Increment Notes
The city, in order to spur economic development and redevelopment, has
entered into private development and redevelopment agreements to encourage
developers to construct, expand, or improve new or existing properties and
buildings or clean-up and redevelop blighted areas. These agreements may in
substance be a tax abatement but will depend on their individual circumstances.
G. Abatements
The city is authorized to create a tax increment financing plan under Minnesota
Statute 469.175. The criteria that must be met under the statute are that, in the
opinion of the municipality:
the proposed development or redevelopment would not reasonably be
expected to occur solely through private investment within the
reasonably foreseeable future; and
the increased market value of the site that could reasonably be
expected to occur without the use of tax increment financing would be
less than the increase in the market value estimated to result from the
proposed development after subtracting the present value of the
projected tax increments for the maximum duration of the district
Year Ending
December 31, Principal Interest Principal Interest Principal Interest Principal Interest Principal Interest
2021 885,000$ 271,709$ 1,240,000$ 204,307$ 565,000$ 215,773$ 195,000$ 48,598$ 105,000$ 18,028$
2022 910,000 251,834 1,270,000 168,168 580,000 201,373 200,000 44,405 106,000 16,912
2023 925,000 230,296 1,100,000 143,743 590,000 186,573 205,000 39,705 107,000 15,786
2024 945,000 207,701 1,120,000 120,893 605,000 171,473 210,000 34,375 108,000 14,648
2025 910,000 183,919 1,145,000 97,618 625,000 155,973 215,000 28,600 109,000 13,500
2026 - 2030 4,600,000 552,486 3,415,000 193,925 3,380,000 520,648 695,000 45,590 565,000 49,802
2031 - 2035 1,595,000 90,523 - - 1,500,000 69,863 - - 596,000 19,134
10,770,000$ 1,788,468$ 9,290,000$ 928,652$ 7,845,000$ 1,521,673$ 1,720,000$ 241,273$ 1,696,000$ 147,810$
Business-Type Activities
PFA Revenue Note
Governmental Activities
General Obligation BondsGeneral Obligation Bonds Tax Abatement Bonds
Special
Assessment Bonds
45
Notes to the Financial Statements – December 31, 2020 CITY OF MONTICELLO
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 5.5% 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 city currently has two agreements that would be considered tax abatements
under GASB Statement 77. The outstanding principal balances as of December
31, 2020 are listed in the following 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.
H. 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, 2020, there are no
arbitrage rebates owed.
I. 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.
Name Purpose
1-22
Downtown
District
Redevelopment activities in
1997 Downtown and 2010
Embracing Downtown plans
1-40
Briggs
60 unit elderly (senior
citizen) housing facility
Amount of taxes
abated during
the fiscal year
Outstanding
principal balance
at year-end
Date of
required
decertification
-$ 785,000$ 12/31/2045
11,303$ 184,816$ 12/31/2024
2013B G.O.
Wastewater
Treatment Bonds PFA Note
Use of proceeds Sewage Fund Sewage Fund
Revenue pledged
Type Utility charges Utility charges
Percent of total debt service 52%48%
Term of pledge 2013-2028 2015-2035
Remaining principal & interest 1,961,273$ 1,843,810$
Current year
Principal and interest paid 242,398$ 123,134$
Pledged revenue received 1,330,864$ 1,228,490$
Description
46
Notes to the Financial Statements – December 31, 2020 CITY OF MONTICELLO
B. Benefits Provided
PERA provides retirement, disability, and death benefits. Benefit provisions are
established by state statute and can only be modified by the state legislature.
Vested, terminated employees who are entitled to benefits but are not receiving
them yet are bound by the provisions in effect at the time they last terminated their
public service.
General Employees Plan Benefits
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.
Benefit increases are provided to benefit recipients each January. Beginning in
2019, the postretirement increase is equal to 50% of the cost-of-living adjustment
(COLA) announced by the Social Security Administration, 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 2020, 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, 2020, were $304,809. 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, 2020, the city reported a liability of $3,405,420 for its
proportionate share of the General Employees Fund’s net pension liability. The
city’s net pension liability reflected a reduction due to the State of Minnesota’s
contribution of $16 million. The State of Minnesota is considered a non-
employer contributing entity and the state’s contribution meets the definition of
a special funding situation. The State of Minnesota’s proportionate share of the
net pension liability associated with the city totaled $104,919. The net pension
liability was measured as of June 30, 2020, and the total pension liability used
to calculate the net pension liability was determined by an actuarial valuation as
of that date. The city’s proportionate share of the net pension liability was based
on the city’s contributions received by PERA during the measurement period for
employer payroll paid dates from July 1, 2019, through June 30, 2020, relative
to the total employer contributions received from all of PERA’s participating
employers. The city’s proportionate share was 0.0568%, which was an increase
of 0.0003% from its proportionate share at June 30, 2019.
For the year ended December 31, 2020, the city recognized pension expense
of $99,210 for its proportionate share of the General Employees Fund’s pension
expense. In addition, the city recognized an additional $9,147 as pension
expense (and grant revenue) for its proportionate share of the State of
Minnesota’s contribution of $16 million to the General Employees Fund.
At December 31, 2020, the city reported its proportionate share of the General
Employees Plan’s deferred outflows of resources and deferred inflows of
resources related to pensions from the following sources:
Deferred Outflows Deferred Inflows
of Resources of Resources
Differences between expected and
actual economic experience 30,852$ 12,885$
Changes in actuarial assumptions - 124,892
Net collective difference between
projected and actual investment earnings 68,068 -
Changes in proportion 55,643 -
Contributions paid to PERA subsequent
to the measurement date 155,223 -
Total 309,786$ 137,777$
47
Notes to the Financial Statements – December 31, 2020 CITY OF MONTICELLO
$155,223 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, 2021. Other amounts reported as deferred outflows and deferred inflows of
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, 2020 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, 2020 valuation were based on the
results of actuarial experience studies. The most recent four-year experience
study in the General Employees Plan was completed in 2019. The assumption
changes were adopted by the Board and become effective with the July 1, 2020
actuarial valuation.
The following changes in actuarial assumptions and changes in plan provisions
occurred in the General Employees Plan in 2020:
The price inflation assumption was decreased from 2.50% to 2.25%.
The payroll growth assumption was decreased from 3.25% to 3.00%.
Assumed salary increase rates were changed as recommended in the
June 30, 2019 experience study. The net effect is assumed rates that
average 0.25% less than previous rates.
Assumed rates of retirement were changed as recommended in the
June 30, 2019 experience study. The changes result in more
unreduced (normal) retirements and slightly fewer Rule of 90 and early
retirements.
Assumed rates of termination were changed as recommended in the
June 30, 2019 experience study. The new rates are based on service
and are generally lower than the previous rates for years 2-5 and
slightly higher thereafter.
Assumed rates of disability were changed as recommended in the
June 30, 2019 experience study. The change results in fewer predicted
disability retirements for males and females.
The base mortality table for healthy annuitants and employees was
changed from the RP-2014 table to the Pub-2010 General Mortality
table, with adjustments. The base mortality table for disabled
annuitants was changed from the RP-2014 disabled annuitant mortality
table to the PUB-2010 General/Teacher disabled annuitant mortality
table, with adjustments.
The mortality improvement scale was changed from Scale MP-2018 to
Scale MP-2019.
The assumed spouse age difference was changed from two years
older for females to one year older.
The assumed number of married male new retirees electing the 100%
Joint & Survivor option changed from 35% to 45%. The assumed
number of married female new retirees electing the 100% Joint &
Survivor option changed from 15% to 30%. The corresponding number
of married new retirees electing the Life annuity option was adjusted
accordingly.
Augmentation for current privatized members was reduced to 2.0% for
the period July 1, 2020 through December 31, 2023 and 0.0% after.
Augmentation was eliminated for privatizations occurring after June 30,
2020.
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
Pension
Year ended Expense
December 31, Amount
2021 (158,191)$
2022 23,836
2023 68,865
2024 82,276
16,786$
Inflation 2.25% per year
Active Member Payroll Growth 3.00% per year
Investment Rate of Return 7.50%
48
Notes to the Financial Statements – December 31, 2020 CITY OF MONTICELLO
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 2020 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:
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 2020 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, 2020, the plan covered 27 active
firefighters and 6 retirees and beneficiaries. The plan is a single-employer
Long-Term
Target Expected Real
Allocation Rate of Return
Domestic stocks 35.5%5.10%
Internalation stocks 17.5%5.30%
Bonds (fixed income)20.0%0.75%
Alternative assets (private markets)25.0%5.90%
Cash 2.0%0.00%
Total 100.0%
Asset Class
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 5,457,706$ 3,405,420$ 1,712,448$
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, 2020 CITY OF MONTICELLO
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.
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 $128,638 in fire
state aid to the plan on behalf of the city Fire Department for the year ended
December 31, 2020, which was recorded as a revenue. Required employer
contributions are calculated annually based on statutory provisions. The city’s
statutorily-required contributions to the plan for the year ended December 31,
2020 were $128,638. 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, 2020 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, 2020, the city reported a net pension asset of $398,991 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, 2020. For the year ended December 31, 2020,
the Fire Department recognized pension expense of $15,871.
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%
50
Notes to the Financial Statements – December 31, 2020 CITY OF MONTICELLO
At December 31, 2020, the fire relief 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 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
Deferred Deferred
Outflows Inflows
of Resources of Resources
Differences between expected and
actual economic experience 70,676$ 198,568$
Changes in actuarial assumptions 7,419 7,389
Net difference between projected
and actual investment earnings - 113,602
78,095$ 319,559$
Pension
Year ended Expense
December 31, Amount
2021 (46,564)$
2022 (31,668)
2023 (53,877)
2024 (29,049)
2025 (11,889)
Thereafter (68,417)
(241,464)$
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 12/31/19 981,203$ 1,209,943$ (228,740)$
Changes for the year
Service cost 69,921 - 69,921
Interest on total pension liability 43,168 - 43,168
Differences between actual and expected
experience in measurement of TPL (20,335) - (20,335)
Contributions from employer - 128,638 (128,638)
Net investment income - 139,820 (139,820)
Administrative expenses - (5,453) 5,453
Ending balance 12/31/20 1,073,957$ 1,472,948$ (398,991)$
51
Notes to the Financial Statements – December 31, 2020 CITY OF MONTICELLO
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, 2020:
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
$2,040.
D. Membership
Membership in the plan consisted of the following as of the latest actuarial
valuation:
1% Decrease 1% Increase
In Discount Discount In Discount
Rate (3.25%) Rate (4.25%) Rate (5.25%)
Net Pension
Liability (Asset)(334,521)$ (398,991)$ (452,983)$
Deferred Deferred
Net Pension Net Pension Outflows of Inflows of Pension
Pension Plan Asset Liability Resources Resources Expense
State-wide, mulit-
employer - PERA -$ 3,405,420$ 309,786$ 137,777$ 108,357$
Single-employer - FRA 398,991 - 78,095 319,559 15,871
398,991$ 3,405,420$ 387,881$ 457,336$ 124,228$
Retirees and beneficiaries receiving benefits -
Active plan members 38
Total members 38
52
Notes to the Financial Statements – December 31, 2020 CITY OF MONTICELLO
E. Total OPEB Liability of the City
The city’s total OPEB liability of $141,276 as of year-end was measured as of
January 1, 2020 and was determined by an actuarial valuation as of January 1,
2019.
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.
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.
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.
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:
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
Total OPEB
Liability
Beginning balance 127,649$
Changes for the year
Service cost 10,457
Interest 5,210
Benefit payments – employer financed (2,040)
13,627
Ending balance 141,276$
1% Decrease in Discount 1% Increase in
Discount Rate Rate Discount Rate
OPEB discount rate 2.80%3.80%4.80%
Total OPEB liability $152,054 $141,276 $131,134
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 5 years 5.00% over 5 years 6.00% over 5 years
Total OPEB liability $125,440 $141,276 $159,932
53
Notes to the Financial Statements – December 31, 2020 CITY OF MONTICELLO
I. OPEB Expense and Related Deferred Outflows of Resources and
Deferred Inflows of Resources
For the current year ended, the city recognized OPEB expense/(benefit) of
($11,411). 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:
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 (LMCIT).
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, 2020 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 $1,500,000 for all claimants for one incident. Annually, the council can
waive the tort limits, but has chosen not to without exception. The city
periodically receives a dividend from LMCIT and has never had to contribute
additional funds beyond premiums and deductibles.
There were no significant reductions in insurance coverages from the previous
year and there were no settlements in excess of insurance coverage in each of
the past three years.
NOTE 11. CLAIMS AND JUDGMENTS
The city participates in a number of federal and state programs that are fully or
partially funded by grants received from other governmental units. Expenditures
financed by grants are subject to audit by the appropriate grantor government.
If expenditures are disallowed due to noncompliance with grant program
regulations, the city may be required to reimburse the grantor government.
As of December 31, 2020, significant amounts of grant expenditures have not
been audited by the granting agency, but the city believes that disallowed
expenditures discovered in subsequent audits, if any, will not have a material
effect on any of the individual funds or the overall financial position of the city.
Deferred Deferred
Outflows Inflows
of Resources of Resources
Liability gains -$ 133,919$
Assumption changes - 1,461
Benefit payments after the measurement date 3,765 -
Total 3,765$ 135,380$
OPEB
Year Ending Expense
June 30, Amount
2021 (27,078)$
2022 (27,078)
2023 (27,078)
2024 (27,078)
2025 (27,068)
(135,380)$
54
Notes to the Financial Statements – December 31, 2020 CITY OF MONTICELLO
NOTE 12. CONCENTRATION OF REVENUES
Cargill Kitchen Solutions is the largest customer of water and sewage services.
The company’s water purchases account for $81,436, or 5.3 percent, of Water
Fund operating revenue; and the company’s sewage charges account for
$415,408, or 16.2 percent, of Sewage Fund operating revenue. Additionally,
Northern States Power Company’s (Xcel Energy) net tax capacity for property
taxes payable in 2020 is $16,079,435, or 52.5 percent, of the total net capacity of
$30,610,915. Accordingly, Xcel Energy’s share of the $10.8 million city property
tax levy is $5.67 million. The tax capacity on January 1, 2020, is based on market
values certified to the state on January 1, 2019.
NOTE 13. SUBSEQUENT EVENTS
Beginning early in 2020, the worldwide spread of the novel coronavirus (COVID-
19) has caused significant volatility in the economy and financial markets. There
is significant uncertainty about the breadth and duration of potential business
disruptions related to COVID-19, and its economic impact in the U.S. and around
the world. At this time, the city is unable to determine what effect this may have
on its future financial condition and operations.
NOTE 14. INTERFUND TRANSFERS
Interfund transfers for the year ended December 31, 2020 are as follows:
The following schedule reflects each fund transfer:
Transfers In Transfers Out
Governmental funds:
General -$ 1,000,000$
Community Center 425,000 -
Economic Development Authority - 200,000
Debt Service 200,000 -
Capital Projects 1,900,000 -
Nonmajor governmental 235,000 -
Total governmental funds 2,760,000 1,200,000
Enterprise funds:
Water - 900,000
Liquor - 660,000
Total enterprise funds - 1,560,000
Total 2,760,000$ 2,760,000$
Amount
Community Center Liquor 425,000$ (1)
Debt Service Economic
Development Authority 200,000 (2)
Capital Projects General 1,000,000 (3)
Water 900,000 (3)
Nonmajor governmental Liquor 235,000 (3)
Total 2,760,000$
(1)Transfer to fund roofing project and impacts related to COVID-19 pandemic.
(2) Transfer for principal and interest payments on 2011A debt issue.
(3) Transfer for project and equipment related funding.
Transfers In Transfers Out
55
Notes to the Financial Statements – December 31, 2020 CITY OF MONTICELLO
NOTE 15. FUND BALANCES
At December 31, 2020, 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 145,603$ 23,482$ 3,186$ -$ -$ 932$ 173,203$
Restricted
Debt service - - - 1,304,532 - - 1,304,532
Capital improvements - - - - 820,516 - 820,516
Economic development - - 1,396,467 - - 924,538 2,321,005
Perpetual cemetery care - - - - - 54,407 54,407
Tax increment - - 507,717 - - - 507,717
Total restricted - - 1,904,184 1,304,532 820,516 978,945 5,008,177
Assigned
Capital improvements - - - - 16,337,080 3,381,062 19,718,142
Economic development - - 4,611,335 - - - 4,611,335
Community center operations - 28,875 - - - - 28,875
Total assigned - 28,875 4,611,335 - 16,337,080 3,381,062 24,358,352
Unassigned 6,494,632 - - - - - 6,494,632
Total 6,640,235$ 52,357$ 6,518,705$ 1,304,532$ 17,157,596$ 4,360,939$ 36,034,364$
Special Revenue Funds
56
REQUIRED SUPPLEMENTARY INFORMATION
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 (1)
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
(2)
Covered Employee
Payroll
Employer's
Proportionate Share
of the Net Pension
Liability as a
Percentage of
Covered Employee
Payroll
Plan Fiduciary Net
Position as a
Percentage of the
Total Pension Liability
2015 0.0578%$2,995,496 $0 $2,995,496 $3,395,756 88.21%78.2%
2016 0.0588%4,774,268 62,387 4,836,655 3,651,024 130.77%68.9%
2017 0.0549%3,504,780 44,041 3,548,821 3,534,506 99.16%75.9%
2018 0.0550%3,051,175 100,077 3,151,252 3,697,145 82.53%79.5%
2019 0.0565%3,123,758 96,996 3,220,754 3,997,826 78.14%80.2%
2020 0.0568%3,405,420 104,919 3,510,339 4,048,023 84.13%79.1%
(1) The city implemented GASB Statement No. 68 in fiscal 2015 (using a June 30, 2015 measurement date). This schedule is intended to present 10-year trend information.
Additional years will be added as they become available.
(2) For purposes of this schedule, covered employee payroll is defined as "pensionable wages."
General Employees Retirement Fund
57
CITY OF MONTICELLO
Required Supplementary Information
Schedule of Employer's Pension Contributions - Public Employees
Retirement Association
Last Ten Fiscal Years (1)
Fiscal
Year
Ending
December
31,
Statutorily Required
Contributions
(a)
Contributions in Relation to the
Statutorily Required
Contributions
(b)
Contribution Deficiency (Excess)
(a-b)
(2)
Covered Employee Payroll
(c)
Contributions as a Percentage of
Covered Employee Payroll
(b/c)
2015 266,042$ 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%
2020 304,809 304,809 - 4,064,114 7.5%
(1) 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.
(2) For purposes of this schedule, covered employee payroll is defined as "pensionable wages."
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 (1)
2015 2016 2017 2018 2019 2020
Total pension liability
Service cost 77,343$ 79,730$ 66,097$ 71,325$ 69,774$ 69,921$
Interest 41,888 44,224 49,857 49,897 50,829 43,168
Changes in benefit terms - 90,761 67,016 74,540 - -
Experience gain/(loss)- (53,156) (30,666) 94,235 (148,892) (20,335)
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) 92,754
Total pension liability - beginning 1,026,005 1,017,135 1,177,526 1,154,458 1,322,555 981,203
Total pension liability - ending (A)1,017,135$ 1,177,526$ 1,154,458$ 1,322,555$ 981,203$ 1,073,957$
Plan fiduciary net position
Contributions - State 120,027$ 123,656$ 125,764$ 130,874$ 122,639$ 128,638$
Supplemental benefits reimbursements 2,000 - 2,000 1,000 5,068 -
Net investment income (17,673) 55,902 126,579 (54,150) 172,359 139,820
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) (5,453)
Net change in plan fiduciary net position (27,279) 174,246 85,313 (49,105) (26,971) 263,005
Plan fiduciary net position - beginning 1,053,739 1,026,460 1,200,706 1,286,019 1,236,914 1,209,943
Plan fiduciary net position - ending (B)1,026,460$ 1,200,706$ 1,286,019$ 1,236,914$ 1,209,943$ 1,472,948$
Net pension liability (asset) - ending (A)-(B)(9,325) (23,180) (131,561) 85,641 (228,740) (398,991)
Plan fiduciary net position as a percentage of the total pension liability 100.9%102.0%111.4%93.5%123.3%137.2%
Covered employee payroll (2)N/A N/A N/A N/A N/A N/A
Net pension liability as a percentage of covered employee payroll (2)N/A N/A N/A N/A N/A N/A
(1)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.
(2)The Association is comprised of volunteers, therefore, there are no payroll expenditures (i.e., there are no covered employee payroll percentage calculations).
59
CITY OF MONTICELLO
Required Supplementary Information
Schedule of Employer's Pension Contributions - Monticello Fire Department
Relief Association
Last Ten Fiscal Years (1)
Statutorily Required
Contributions
(a)
Actual Contributions
Paid
(b)
Contribution Deficiency
(Excess)
(a-b)
-$ -$ -$ 120,027$
- - - 123,656
- - - 125,764
- - - 130,874
- - - 122,639
- - - 128,638
(1) 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.
Note: The Association is comprised of volunteers, therefore, there are no payroll employee expenditures (i.e., there are no covered employee payroll percentage calculations).
2016
2017
2018
City Contributions
Non-Employer
Contribution - State 2%
Fire Aid
City Fiscal
Year Ending
December 31,
2015
2019
2020
60
CITY OF MONTICELLO
Required Supplementary Information
Schedule of Changes in the City's Total OPEB Liability and Related Ratios
Last Ten Fiscal Years (1)
2018 2019 2020
Total OPEB liability
Service cost 24,158$ 10,152$ 10,457$
Interest 9,998 10,347 5,210
Changes in assumptions - (2,047) -
Differences between expected and actual experience - (187,489) -
Benefit payments (5,938) (13,277) (2,040)
Net change in total OPEB liability 28,218 (182,314) 13,627
Total OPEB liability - beginning 281,745 309,963 127,649
Total OPEB liability - ending 309,963$ 127,649$ 141,276$
Covered employee payroll 3,130,628$ 2,462,725$ 2,536,607$
Net OPEB liability as a percentage of covered employee payroll 10%5%6%
(1) 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, 2020
101
Original and Final Variance with
Budget Actual Final Budget
Revenues
Property taxes 6,807,500$ 6,797,640$ (9,860)$
Franchise taxes 250,500 194,000 (56,500)
Special assessments 200 166 (34)
Licenses and permits 407,200 521,369 114,169
Intergovernmental 397,200 737,650 340,450
Charges for services 857,300 936,731 79,431
Fines and forfeitures 40,400 31,852 (8,548)
Investment earnings 80,000 138,968 58,968
Other revenues 62,700 431,683 368,983
Total revenues 8,903,000 9,790,059 887,059
Expenditures:
Current
General government
Mayor and council 57,798 52,589 (5,209)
City administration 491,649 789,820 298,171
City clerk 150,400 180,824 30,424
Finance 491,791 451,819 (39,972)
Audit 44,000 39,559 (4,441)
City assessing 73,000 70,115 (2,885)
Legal 37,000 29,340 (7,660)
Human resources 129,407 142,232 12,825
Planning and zoning 331,630 339,005 7,375
City hall 65,095 60,501 (4,594)
Prairie center building 18,549 14,857 (3,692)
Public safety
Law enforcement 1,532,621 1,524,150 (8,471)
Fire and rescue 457,772 414,399 (43,373)
Fire relief 130,000 131,638 1,638
Building inspections 443,860 354,251 (89,609)
Emergency Management 5,000 257,565 252,565
Animal control 52,755 49,522 (3,233)
National Guard 14,000 12,429 (1,571)
(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, 2020 (Continued)
Original and Final Variance with
Budget Actual Final Budget
Expenditures (continued)
Public works
Public works administration 224,484$ 221,881$ (2,603)$
Engineering 116,662 80,432 (36,230)
Public works inspecitons 111,035 102,110 (8,925)
Streets and alleys 1,061,105 777,633 (283,472)
Ice and snow removal 328,990 326,120 (2,870)
Shop and garage 214,727 199,310 (15,417)
Street lighting 250,500 191,829 (58,671)
Sanitation
Refuse and recycling collection 686,776 681,948 (4,828)
Recreation and culture
Senior center 107,452 103,662 (3,790)
Park operations 1,078,841 1,040,665 (38,176)
Park ballfields 27,400 23,685 (3,715)
Shade tree 85,892 79,024 (6,868)
Public arts 35,664 36,092 428
Library 47,145 48,068 923
Total expenditures 8,903,000 8,827,074 (75,926)
Excess (deficiency) of revenues over expenditures - 962,985 962,985
Other financing uses
Transfers out - (1,000,000) (1,000,000)
Net change in fund balance - (37,015) (37,015)
Fund balance at beginning of year 6,677,250 6,677,250 -
Fund balance at end of year 6,677,250$ 6,640,235$ (37,015)$
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, 2020
226
Original and Final Variance with
Budget Actual Final Budget
Revenues
Property taxes 417,000$ 417,000$ -$
Intergovernmental - 42,827 42,827
Charges for services 1,577,800 496,912 (1,080,888)
Investment earnings 2,000 1,084 (916)
Other revenues 11,200 53,203 42,003
Total revenues 2,008,000 1,011,026 (996,974)
Expenditures
Current
Recreation and culture
Operations 486,428 465,919 (20,509)
Rentals 40,406 737 (39,669)
Aquatics 222,283 82,967 (139,316)
Concessions & guest services 193,283 89,602 (103,681)
Maintenance 664,374 506,372 (158,002)
Programming 301,226 109,981 (191,245)
Capital outlay
Recreation and culture
Maintenance 100,000 367,573 267,573
Total expenditures 2,008,000 1,623,151 (384,849)
Excess (deficiency) of revenues over expenditures - (612,125) (612,125)
Other financing sources
Transfers in - 425,000 425,000
Net change in fund balance - (187,125) (187,125)
Fund balance at beginning of year 239,482 239,482 -
Fund balance at end of year 239,482$ 52,357$ (187,125)$
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, 2020
213
Original and Final Variance with
Budget Actual Final Budget
Revenues
Property taxes 355,000$ 355,080$ 80$
Tax increments 617,344 707,824 90,480
Intergovernmental - 185,000 185,000
Investment earnings 40,000 69,099 29,099
Interest on loans - 3,739 3,739
Other revenues - 2,280 2,280
Total revenues 1,012,344 1,323,022 310,678
Expenditures
Current
Economic development
General operations 216,000 300,232 84,232
Land held for resale adjustment 144,000 245,118 101,118
Developmental activities 290,344 1,372,231 1,081,887
Total expenditures 650,344 1,917,581 1,267,237
Excess (deficiency) of revenues over expenditures 362,000 (594,559) (956,559)
Other financing uses
Transfers out (200,000) (200,000) -
Net change in fund balance 162,000 (794,559) (956,559)
Fund balance at beginning of year 7,313,264 7,313,264 -
Fund balance at end of year 7,475,264$ 6,518,705$ (956,559)$
65
Notes to the Required Supplementary Information – December 31, 2020 CITY OF MONTICELLO
NOTE 1. SCHEDULE OF EMPLOYER’S SHARE AND NON-
EMPLOYER PROPORTIONATE SHARE OF NET PENSION LIABILITY
– PUBLIC EMPLOYEES RETIREMENT ASSOCIATION
The following changes were reflected in the valuation performed on behalf of the
Public Employees Retirement Association for the year ended June 30:
2020
Changes in Actuarial Assumptions
The price inflation assumption was decreased from 2.50% to 2.25%.
The payroll growth assumption was decreased from 3.25% to 3.00%.
Assumed salary increase rates were changed as recommended in the
June 30, 2019 experience study. The net effect is assumed rates that
average 0.25% less than previous rates.
Assumed rates of retirement were changed as recommended in the June
30, 2019 experience study. The changes result in more unreduced
(normal) retirements and slightly fewer Rule of 90 and early retirements.
Assumed rates of termination were changed as recommended in the
June 30, 2019 experience study. The new rates are based on service
and are generally lower than the previous rates for years 2-5 and slightly
higher thereafter.
Assumed rates of disability were changed as recommended in the June
30, 2019 experience study. The change results in fewer predicted
disability retirements for males and females.
The base mortality table for healthy annuitants and employees was
changed from the RP-2014 table to the Pub-2010 General Mortality table,
with adjustments. The base mortality table for disabled annuitants was
changed from the RP-2014 disabled annuitant mortality table to the
PUB-2010 General/Teacher disabled annuitant mortality table, with
adjustments.
The mortality improvement scale was changed from Scale MP-2018 to
Scale MP-2019.
The assumed spouse age difference was changed from two years older
for females to one year older.
The assumed number of married male new retirees electing the 100%
Joint & Survivor option changed from 35% to 45%. The assumed number
of married female new retirees electing the 100% Joint & Survivor option
changed from 15% to 30%. The corresponding number of married new
retirees electing the Life annuity option was adjusted accordingly.
Changes in Plan Provisions
Augmentation for current privatized members was reduced to 2.0% for
the period July 1, 2020 through December 31, 2023 and 0.0% after.
Augmentation was eliminated for privatizations occurring after June 30,
2020.
2019
Changes in Actuarial Assumptions
The mortality projection scale was changed from MP-2017 to MP-
2018.
Changes in Plan Provisions
The employer supplemental contribution was changed prospectively,
decreasing from $31.0 million to $21.0 million per year. The State’s
special funding contribution was changed prospectively, requiring
$16.0 million due per year through 2031.
2018
Changes in Actuarial Assumption
The morality projection scale was changed from MP-2015 to MP-2017.
The assumed benefit increase was changed from 1.00% per year
through 2044 and 2.50% per year thereafter to 1.25% per year.
Changes in Plan Provisions
The augmentation adjustment in early retirement factors is eliminated
over a five-year period starting July 1, 2019, resulting in actuarial
equivalence after June 30, 2024.
Interest credited on member contributions decreased from 4.00% to
3.00%, beginning July 1, 2018.
Deferred augmentation was changed to 0.00%, effective January 1,
2019. Augmentation that has already accrued for deferred members
will still apply.
Contribution stabilizer provisions were repealed.
Postretirement benefit increases were changed from 1.00% per year
with a provision to increase to 2.50% upon attainment of 90.00%
funding ratio to 50.00% of the Social Security Cost of Living
Adjustment, not less than 1.00% and not more than 1.50%, beginning
January 1, 2019.
For retirements on or after January 1, 2024, the first benefit increase
is delayed until the retiree reaches normal retirement age; does not
apply to Rule of 90 retirees, disability benefit recipients, or survivors.
Actuarial equivalent factors were updated to reflect revised mortality
and interest assumptions.
2017
Changes in Actuarial Assumption
The Combined Service Annuity (CSA) loads were changed from 0.8%
for active members and 60% for vested and non-vested deferred
members. The revised CSA loads are now 0.00% for active member
liability, 15.00% for vested deferred member liability, and 3.00% for
nonvested deferred member liability. The assumed post-retirement
benefit increase rate was changed from 1.00% per year for all years to
1.00% per year through 2044, and 2.50% per year thereafter.
66
Notes to the Required Supplementary Information – December 31, 2020 CITY OF MONTICELLO
Changes in Plan Provisions
The State’s contribution for the Minneapolis Employees Retirement Fund
equals $16,000,000 in 2017 and 2018, and $6,000,000 thereafter.
The Employer Supplemental Contribution for the Minneapolis Employees
Retirement Fund changed from $21,000,000 to $31,000,000 in calendar
years 2019 to 2031. The state’s contribution changed from $16,000,000
to $6,000,000 in calendar years 2019 to 2031.
2016
Changes in Actuarial Assumptions
The assumed postretirement benefit increase rate was changed from
1.00% per year through 2035 and 2.50% per year thereafter to 1.00%
per year for all years.
The assumed investment return was changed from 7.90% to 7.50%.
The single discount rate changed from 7.90% to 7.50%.
Other assumptions were changed pursuant to the experience study June
30, 2015. The assumed future salary increases, payroll growth, and
inflation were decreased by 0.25% to 3.25% for payroll growth and 2.50%
for inflation.
Changes in Actuarial Plan Provisions
There have been no changes since the prior valuation.
2015
Changes in Actuarial Assumptions
The assumed postretirement benefit increase rate was changed from
1.00% per year through 2030 and 2.50% per year thereafter to 1.00%
per year through 2035 and 2.50% per year thereafter.
Changes in Plan Provisions
On January 1, 2015, the Minneapolis Employees Retirement Fund was
merged into the General Employees Fund, which increased the total
pension liability by $1.1 billion and increase the fiduciary plan net position
by $892 million. Upon consolidation, state and employer contributions
were revised; the State’s contribution of $6.0 million, which meets the
special funding situation definition, was due September 2015.
NOTE 2. SCHEDULE OF CHANGES IN THE FIRE RELIEF
ASSOCIATION’S NET PENSION LIABILITY (ASSET) AND RELATED
RATIOS
Changes in Actuarial Assumptions and Benefit Terms
2019 – 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.
2018 – The benefit level was increased from $3,900 to $4,200 per year
of service.
2017 – The annual turnover rate was changed from 10% to 1%. 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.
2016 – The benefit level was increased from $3,300 to $3,600 per year
of service.
NOTE 3. SCHEDULE OF CHANGES IN THE CITY’S TOTAL OPEB
LIABILITY AND RELATED RATIOS
Changes in Actuarial Assumptions
2020 – The healthcare trend rate was changed to better anticipate
short-term and long-term medical increases.
2019 – 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 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.
2018 – The discount rate was decreased from 3.5% to 3.3%.
NOTE 4. BUDGETARY INFORMATION
A. 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.
67
Notes to the Required Supplementary Information – December 31, 2020 CITY OF MONTICELLO
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.
B. Excess of expenditures over appropriations
For the year ended December 31, 2020, expenditures exceeded appropriations in
the Economic Development Authority special revenue fund by $1,267,237. The
excess of expenditures was related to an unbudgeted qualifying TIF expenditure
for land acquisition in the new 1-41 TIF district that will be certified in 2021. Fund
balance reserves were used to fund the expenditures.
68
NONMAJOR GOVERNMENTAL FUNDS
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.
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
December 31, 2020
221 651 214 212 245 229
Small Cities City Street Street Park &
Development CDBG -Recon-Lighting Pathway
Program Cemetery Revitalization struction Improvement Dedication Total
ASSETS
Cash and investments 756,345$ 51,742$ -$ 1,667,656$ 899,269$ 772,915$ 4,147,927$
Receivables
Deferred special assessments - - - - - 12,004 12,004
Accounts - 3,065 - - 96,659 - 99,724
Prepaid items - 932 - - - - 932
Notes receivable 168,193 - - - - - 168,193
Total assets 924,538$ 55,739$ -$ 1,667,656$ 995,928$ 784,919$ 4,428,780$
LIABILITIES
Accounts and contracts payable -$ 400$ -$ -$ -$ 55,437$ 55,837$
DEFERRED INFLOWS OF RESOURCES
Unavailable revenue - special assessments - - - - - 12,004 12,004
FUND BALANCES
Nonspendable - 932 - - - - 932
Restricted for economic development 924,538 - - - - - 924,538
Restricted for cemetery operations - 54,407 - - - - 54,407
Assigned for capital improvements - - - 1,667,656 995,928 717,478 3,381,062
Total fund balances 924,538 55,339 - 1,667,656 995,928 717,478 4,360,939
Total liabilities, deferred inflows of
resources, and fund balances 924,538$ 55,739$ -$ 1,667,656$ 995,928$ 784,919$ 4,428,780$
Special Revenue Funds Capital Project Funds
69
CITY OF MONTICELLO
Combining Statement of Revenues, Expenditures and Changes in Fund Balance
Nonmajor Governmental Funds
For the Year Ended December 31, 2020
221 651 214 212 245 229
Small Cities City Street Street Park &
Development CDBG -Recon-Lighting Pathway
Program Cemetery Revitalization struction Improvement Dedication Total
Revenues
Franchise taxes -$ -$ -$ -$ 190,336$ -$ 190,336$
Special assessments - - - - - 1,033 1,033
Intergovernmental - 15,000 - - - -15,000
Charges for services - 40,884 - - - -40,884
Investment earnings 15,277 701 - 33,886 17,709 19,365 86,938
Interest on loans 4,896 - - - - - 4,896
Other revenues - - - - - 29,395 29,395
Total revenues 20,173 56,585 - 33,886 208,045 49,793 368,482
Expenditures
Current
Recreation and culture - 27,321 - - - - 27,321
Economic development - -392 - - - 392
Capital outlay
Public works - - - - 621 - 621
Recreation and culture - - - - - 506,656 506,656
Total expenditures - 27,321 392 - 621 506,656 534,990
Excess (deficiency) of
revenues over expenditures 20,173 29,264 (392) 33,886 207,424 (456,863) (166,508)
Other financing sources
Transfers in - - - - - 235,000 235,000
Net change in fund balance 20,173 29,264 (392) 33,886 207,424 (221,863) 68,492
Fund balance at begining of year 904,365 26,075 392 1,633,770 788,504 939,341 4,292,447
Fund balance at end of year 924,538$ 55,339$ -$ 1,667,656$ 995,928$ 717,478$ 4,360,939$
Special Revenue Funds Capital Project Funds
70
INTERNAL SERVICE FUNDS
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, 2020
704 703 702
Benefit Central IT
Accrual Equipment Services Total
ASSETS
Current assets
Cash and investments 339,355$ 579,335$ 285,902$ 1,204,592$
Accounts receivable - - 30 30
Total current assets 339,355 579,335 285,932 1,204,622
Noncurrent assets
Capital assets
Machinery and equipment - 2,312,841 185,316 2,498,157
Less accumulated depreciation - (845,005) (40,336) (885,341)
Total noncurrent assets - 1,467,836 144,980 1,612,816
TOTAL ASSETS 339,355 2,047,171 430,912 2,817,438
LIABILITIES
Current liabilities
Accounts payable - - 30,992 30,992
Accrued interest payable - 280 - 280
Bonds payable due within one year - 60,000 - 60,000
Compensated absences due within one year 184,805 - - 184,805
Total current liabilities 184,805 60,280 30,992 276,077
Noncurrent liabilities
Bonds payable, net current portion - 180,000 - 180,000
Compensated absences payable 126,853 - - 126,853
Total noncurrent liabilities 126,853 180,000 - 306,853
TOTAL LIABILITIES 311,658 240,280 30,992 582,930
NET POSITION
Net investment in capital assets - 1,227,836 144,980 1,372,816
Unrestricted 27,697 579,055 254,940 861,692
TOTAL NET POSITION 27,697$ 1,806,891$ 399,920$ 2,234,508$
71
CITY OF MONTICELLO
Combining Statement of Revenues, Expenses and Changes in Net Position
Internal Service Funds
For the Year Ended December 31, 2020
704 703 702
Benefit Central IT
Accrual Equipment Services Total
Operating revenues
Charges to other funds 6,541$ 330,800$ 225,000$ 562,341$
Other revenues - - 90 90
Total operating revenues 6,541 330,800 225,090 562,431
Operating expenses
Personal services 6,541 - - 6,541
Materials and supplies - - 110,502 110,502
Other services and charges - - 235,292 235,292
Depreciation - 191,486 7,468 198,954
Total operating expenses 6,541 191,486 353,262 551,289
Operating income - 139,314 (128,172) 11,142
Nonoperating revenues (expenses)
Intergovernmental - - 209,388 209,388
Investment earnings 6,927 12,421 5,531 24,879
Interest expense - (10,168) - (10,168)
Total nonoperating revenues (expenses)6,927 2,253 214,919 224,099
Change in net position 6,927 141,567 86,747 235,241
Net position at beginning of year 20,770 1,665,324 313,173 1,999,267
Net position at end of year 27,697$ 1,806,891$ 399,920$ 2,234,508$
72
CITY OF MONTICELLO
Combining Statement of Cash Flows
Internal Service Funds
For the Year Ended December 31, 2020
704 703 702
Benefit Central IT
Accrual Equipment Services Total
Cash flow from operating activities
Cash received from internal services provided 6,541$ 330,800$ 225,090$ 562,431$
Cash paid to suppliers for goods and services - - (323,543) (323,543)
Net cash provided by operating activities 6,541 330,800 (98,453) 238,888
Cash flows from noncapital financing activities
Intergovernmental revenues - - 209,388 209,388
Cash flows from capital and related financing activities
Acquisition of capital assets - (375,450) (127,144) (502,594)
Principal payments on long-term debt - (125,000) - (125,000)
Interest and fiscal charges paid on long-term debt - (10,341) - (10,341)
Net cash (used) by capital and related financing activities - (510,791) (127,144) (637,935)
Cash flows from investing activities
Interest on investments 6,927 12,421 5,531 24,879
Increase in cash and cash equivalents 13,468 (167,570) (10,678) (164,780)
Cash and cash equivalents - January 1 325,887 746,905 296,580 1,369,372
Cash and cash equivalents - December 31 339,355$ 579,335$ 285,902$ 1,204,592$
Reconciliation of operating income (loss) to net cash
provided by operating activities:
-$ 139,314$ (128,172)$ 11,142$ Operating income (loss)
Adjustments to Reconcile Operating Income (Loss) to
Net Cash Provided by Operating Activities:
Depreciation - 191,486 7,468 198,954
Changes in assets and liabilities:
Increase (decrease) in accounts payable - - 22,251 22,251
Increase (decrease) in compensated absences 6,541 - - 6,541
Net cash provided by operating activities 6,541$ 330,800$ (98,453)$ 238,888$
73
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74
OTHER SUPPLEMENTARY SCHEDULES
CITY OF MONTICELLO
Schedule of Revenues (Sources) and Expenditures (Uses)
General Fund
For the Year Ended December 31, 2020
2020 Variance with
2016 2017 2018 2019 Final 2020 Final
Actual Actual Actual Actual Budget Actual Budget
Revenue and other sources - summary:
Property taxes 6,204,429$ 6,384,444$ 6,634,769$ 6,689,647$ 6,807,500$ 6,797,640$ (9,860)$
Franchise taxes 263,900 250,000 245,000 211,000 250,500 194,000 (56,500)
Special assessments 242 2,290 206 802 200 166 (34)
Licenses and permits 668,602 600,933 504,464 603,925 407,200 521,369 114,169
Intergovernmental 389,005 429,697 428,443 431,004 397,200 737,650 340,450
Charges for services 421,762 477,436 590,106 792,311 857,300 936,731 79,431
Fines and forfeitures 30,656 36,702 45,350 40,054 40,400 31,852 (8,548)
Investment earnings 99,237 120,631 106,767 228,216 80,000 138,968 58,968
Other 193,723 191,212 134,688 236,037 62,700 431,683 368,983
Other Financing Sources 11,180 1,725 15,000 54,340 - - -
Total Revenues & Other Sources 8,282,736 8,495,070 8,704,793 9,287,336 8,903,000 9,790,059 887,059
Revenue and other sources - detail:
Property taxes
Property tax - current 6,152,157 6,277,737 6,567,152 6,649,999 6,788,000 6,758,778 (29,222)
Property tax - delinquent 31,704 71,029 46,482 17,832 - 15,998 15,998
Mobile home tax 16,324 17,620 18,984 18,202 17,500 20,152 2,652
Penalties and interest - taxes 4,244 18,058 2,151 3,614 2,000 2,712 712
Franchise taxes
Franchise taxes - electric 263,900 250,000 245,000 211,000 250,500 194,000 (56,500)
Special assessments
Assessment for services/projects 242 2,290 206 802 200 166 (34)
Licenses and permits
Liquor license 45,895 46,205 50,295 52,303 48,100 37,512 (10,588)
Beer license 1,013 1,151 1,988 - - - -
Other business licenses & permits 5,295 6,387 6,840 7,540 5,200 6,430 1,230
Building permits 598,983 520,692 427,644 520,409 340,000 461,383 121,383
Variance/conditional use permits - 200 - - - 200 200
Driveway permits 30 360 180 510 200 275 75
Mobile home permits 180 868 720 2,551 300 540 240
Excavation permits 7,125 6,405 7,410 6,720 5,000 8,375 3,375
Right-of-way permits 3,144 4,610 3,707 4,567 3,000 3,061 61
Sign/banner permits 5,694 9,355 4,815 6,020 4,500 2,840 (1,660)
Animal licenses 1,243 4,700 865 3,305 900 753 (147)
Intergovernmental
Pera increase aid 6,741 6,822 6,849 6,741 - - -
Federal - operating - - - - - 274,315 274,315
State highway aid - operating 131,898 134,955 155,374 155,211 152,000 171,913 19,913
Fire department aid - operating 123,656 133,813 130,874 123,640 130,000 131,638 1,638
Police department aid - operating 68,710 70,959 71,834 81,708 69,000 84,631 15,631
County operating grant - street/highway 55,780 26,875 27,353 26,428 25,000 30,947 5,947
(continued)
75
CITY OF MONTICELLO
Schedule of Revenues (Sources) and Expenditures (Uses)
General Fund
For the Year Ended December 31, 2020 (Continued)
2020 Variance with
2016 2017 2018 2019 Final 2020 Final
Actual Actual Actual Actual Budget Actual Budget
Intergovernmental (continued)
2,220$ 2,392$ 12,331$ 7,531$ 2,200$ 3,977$ 1,777$
- 53,881 19,978 19,745 19,000 20,944 1,944
County operating grant - emergency management
County operating grant - recycling
Operating grant - other - -3,850 10,000 - 19,285 19,285
Charges for services
Assessment searches 12,760 10,968 10,695 13,940 9,000 17,530 8,530
Blight notice fee 320 - - - - - -
Planning administration fee 5,950 7,585 5,876 24,571 2,000 5,550 3,550
NSF fee 30 60 30 - - - -
Inspection/construction fees 965 1,014 764 907 300 827 527
Contractor licensing fee 825 320 290 720 - 340 340
Fire protections fees - townships 131,717 131,774 142,374 142,740 142,000 143,533 1,533
Fire emergency response fee 4,900 23,500 19,995 19,210 10,000 57,650 47,650
Fire - other fees 3,814 5,407 11,808 3,345 4,000 2,359 (1,641)
Blight mowing fees 450 - - - - - -
Rental housing fees 49,020 49,600 45,500 42,835 46,000 45,365 (635)
Animal control fees 36,089 45,224 45,232 38,915 45,000 40,428 (4,572)
Miscellaneous pubic works - - 8,621 - - - -
Tree and brush removal charge 3,290 1,513 2,365 2,580 2,300 2,730 430
Recycling charge - - 30 - - 54,259 54,259
Garbage fee - taxable 89,656 80,774 169,217 381,328 531,000 467,829 (63,171)
Garbage surcharge - not taxable 300 - 90 - - - -
Field/Tourney fees 5,679 14,036 14,400 13,200 10,700 4,415 (6,285)
Park rental fees 4,962 5,355 9,051 5,751 5,000 5,386 386
Arts activity fees - - - 400 - - -
Developer cost reimbursement 750 19,540 16,429 19,498 - 13,656 13,656
Billboard land rental 21,149 21,187 22,881 23,475 7,000 21,714 14,714
Lease - Prairie Center 24,006 32,238 28,548 30,154 16,000 24,098 8,098
Lease - communication tower 24,905 26,441 29,213 26,300 27,000 26,959 (41)
General charges for services 225 900 6,697 2,442 - 2,103 2,103
Fines and forfeitures
Court fines 30,150 35,607 44,450 38,454 40,000 31,170 (8,830)
Animal impound fines 506 595 400 1,100 400 682 282
Liquor license violation - 500 500 500 - - -
Investment earnings
Investment earnings 99,237 120,631 106,767 228,216 80,000 138,968 58,968
Other
Solar investment rebates - - - - - 326,917 326,917
City property rental 1,600 1,600 1,600 1,600 1,600 277 (1,323)
Contributions 5,315 3,025 13,543 42,567 2,500 2,218 (282)
Sale of city property 10,650 20,948 5,724 3,096 1,000 16,945 15,945
Sale of lock boxes 1,710 855 920 2,400 800 3,544 2,744
(continued)
76
CITY OF MONTICELLO
Schedule of Revenues (Sources) and Expenditures (Uses)
General Fund
For the Year Ended December 31, 2020 (Continued)
2020 Variance with
2016 2017 2018 2019 Final 2020 Final
Actual Actual Actual Actual Budget Actual Budget
Other (continued)
Tree Sales 7,533$ 8,646$ 7,073$ 6,752$ 7,000$ 5,346$ (1,654)$
Copies 19 10 15 47 - 87 87
Refunds & reimbursables 88,860 49,603 42,297 21,663 - 24,026 24,026
Assessment fee reimbursement 24,150 19,950 21,300 16,575 20,000 15,300 (4,700)
Fire contributions 7,852 12,660 2,973 84,149 - 3,764 3,764
Insurance claims - 46,475 - 1,867 - --
Other miscellaneous 46,034 27,440 39,243 55,321 29,800 33,259 3,459
Other Financing Sources
Sales of capital assets 11,180 1,725 15,000 29,340 - - -
Transfers from other funds - - - 25,000 - - -
Total revenues and other sources 8,282,736$ 8,495,070$ 8,704,793$ 9,287,336$ 8,903,000$ 9,790,059$ 887,059$
Expenditures and other uses - summary
General government 1,493,560$ 1,620,699$ 1,654,539$ 1,775,333$ 1,888,299$ 2,168,641$ 280,342$
Public safety 2,038,793 2,180,745 2,356,471 2,451,784 2,638,028 2,745,974 107,946
Public works 1,802,884 1,904,391 2,079,091 2,222,034 2,307,503 1,899,315 (408,188)
Sanitation 600,300 614,328 615,586 610,944 686,776 681,948 (4,828)
Transit 41,250 3,191 18,333 - - - -
Recreation and culture 1,016,025 1,119,343 1,200,388 1,209,429 1,382,394 1,331,196 (51,198)
Transfers out and other uses - 300,000 700,000 1,450,040 - 1,000,000 1,000,000
Total expenditures and other uses 6,992,812$ 7,742,697$ 8,624,408$ 9,719,564$ 8,903,000$ 9,827,074$ 924,074$
Expenditures and other uses - divisions
General government
Mayor and council 57,507$ 54,123$ 53,928$ 57,409$ 57,798$ 52,589$ (5,209)$
City administration 326,134 481,843 449,100 443,963 491,649 789,820 298,171
City clerk 66,031 102,422 130,948 121,197 150,400 180,824 30,424
Finance 393,754 425,247 430,924 456,902 491,791 451,819 (39,972)
Audit 39,273 44,745 40,531 45,940 44,000 39,559 (4,441)
City assessing 50,415 51,972 66,190 64,554 73,000 70,115 (2,885)
Legal 29,152 35,714 27,967 41,837 37,000 29,340 (7,660)
Human resources 116,522 123,206 126,581 142,812 129,407 142,232 12,825
Planning and zoning 210,173 216,007 239,045 315,091 331,630 339,005 7,375
Information technology services 692 - - - - - -
City hall 197,006 70,235 66,111 66,422 65,095 60,501 (4,594)
Prairie center building 8,917 17,202 25,232 21,225 18,549 14,857 (3,692)
Public safety
Law enforcement 1,212,080 1,257,194 1,362,411 1,455,727 1,532,621 1,524,150 (8,471)
Fire and rescue 289,010 350,891 435,068 477,941 457,772 414,399 (43,373)
Fire relief 123,656 125,764 132,874 123,640 130,000 131,638 1,638
Building inspections 350,304 381,260 351,511 324,072 443,860 354,251 (89,609)
Emergency management 1,234 1,933 12,332 8,253 5,000 257,565 252,565
(continued)
77
CITY OF MONTICELLO
Schedule of Revenues (Sources) and Expenditures (Uses)
General Fund
For the Year Ended December 31, 2020 (Continued)
2020 Variance with
2016 2017 2018 2019 Final 2020 Final
Actual Actual Actual Actual Budget Actual Budget
Public safety (continued)
Animal control 46,943$ 48,166$ 46,608$ 46,709$ 52,755$ 49,522$ (3,233)$
13,550 13,520 13,649 13,423 14,000 12,429 (1,571) National guard
Public works
Public works administration 126,327 120,785 196,851 228,625 224,484 221,881 (2,603)
Engineering 111,795 130,325 126,179 111,710 116,662 80,432 (36,230)
Public works inspecitons 62,100 62,882 83,560 90,047 111,035 102,110 (8,925)
Streets and alleys 806,098 846,575 891,117 920,384 1,061,105 777,633 (283,472)
Ice and snow 264,232 267,095 344,974 454,607 328,990 326,120 (2,870)
Shop and garage 171,079 200,690 168,049 178,063 214,727 199,310 (15,417)
Stormwater 29,277 30,743 23,883 27,650 - - -
Street lighting 231,976 245,296 244,478 210,948 250,500 191,829 (58,671)
Sanitation
Refuse and recycling collection 600,300 614,328 615,586 610,944 686,776 681,948 (4,828)
Transit
Bus service 41,250 3,191 18,333 - - - -
Recreation and culture
Senior center 99,124 103,161 103,226 102,169 107,452 103,662 (3,790)
Park operations 775,738 871,121 916,335 925,482 1,078,841 1,040,665 (38,176)
Park ballfields 20,538 21,936 21,063 19,836 27,400 23,685 (3,715)
Shade tree 75,802 80,922 80,916 61,396 85,892 79,024 (6,868)
Public arts - - 29,876 46,954 35,664 36,092 428
Library 44,823 42,203 48,972 53,592 47,145 48,068 923
Transfers out and other uses
Transfers out - 300,000 700,000 1,450,040 - 1,000,000 1,000,000
Total expenditures & other uses 6,992,812$ 7,742,697$ 8,624,408$ 9,719,564$ 8,903,000$ 9,827,074$ 924,074$
Revenue and other sources over
expenditures and other uses 1,289,924$ 752,373$ 80,385$ (432,228)$ -$ (37,015)$ (37,015)
78
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, 2020
221
Orginal and Final Variance with
Budget Actual Final Budget
Revenues
Investment earnings 15,000$ 15,277$ 277$
Interest on loans - 4,896 4,896
Total revenues 15,000 20,173 5,173
Fund balance at beginning of year 904,365 904,365 -
Fund balance at end of year 919,365$ 924,538$ 5,173$
79
CITY OF MONTICELLO
Schedule of Revenues, Expenditures and Changes in Fund Balance
Budget and Actual - Cemetery Fund
For the Year Ended December 31, 2020
651
Orginal and Final Variance with
Budget Actual Final Budget
Revenues
Intergovernmental -$ 15,000$ 15,000$
Charges for services 33,000 40,884 7,884
Investment earnings - 701 701
Total revenues 33,000 56,585 23,585
Expenditures
Current
Recreation and culture
Cemetery operations 33,000 27,321 (5,679)
Net change in fund balance - 29,264 29,264
Fund balance at beginning of year 26,075 26,075 -
Fund balance at end of year 26,075$ 55,339$ 29,264$
80
CITY OF MONTICELLO
Schedule of Revenues, Expenditures and Changes in Fund Balance
Budget and Actual - CDBG-Revitalization Fund
For the Year Ended December 31, 2020
214
Orginal and Final Variance with
Budget Actual Final Budget
Expenditures
Current
-$ 392$ 392$
- (392) (392)
392 392 -
Economic development
Other expenditures
Net change in fund balance
Fund balance at beginning of year
Fund balance at end of year 392$ -$ (392)$
81
CITY OF MONTICELLO
Schedule of Assets, Liabilities, Deferred Inflows of Resources and Fund Balances
Economic Development Authority
December 31, 2020
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 801,521$ 1,049,574$ -$ 6,721$ 92,936$ 104,838$ 400,241$ 117,208$
Receivables
Unremitted taxes 2,367 - - - - - - -
Delinquent taxes 1,367 - - - - - 1,898 -
Accounts 525 - - - - - --
Intrafund receivable 566,924 - - 742,384 - - - -
Prepaid items 3,186 - - - - - - -
Notes receivable - 183,693 - - - - - -
Land held for resale 3,303,170 - - - - - 163,200 -
TOTAL ASSETS 4,679,060$ 1,233,267$ -$ 749,105$ 92,936$ 104,838$ 565,339$ 117,208$
LIABILITIES
Accounts and contracts payable 11,696$ -$ -$ -$ -$ -$ -$ -$
Due to other governmental units 259 - - - - - - -
Intrafund payable - - 44,497 - - - - -
Unearned revenue - - - - - - 163,200 -
Escrow deposits 6,720 - - - - - - -
Total liabilities 18,675 - 44,497 - - - 163,200 -
DEFERRED INFLOWS OF RESOURCES
Unavailable revenue - property taxes 1,367 - - - - - 1,898 -
FUND BALANCES
Nonspendable 3,186 - - - - - - -
Restricted - 1,233,267 - 749,105 92,936 104,838 400,241 117,208
Assigned 4,655,832 - (44,497) - - - - -
Total fund balance 4,659,018 1,233,267 (44,497) 749,105 92,936 104,838 400,241 117,208
TOTAL LIABILITIES, DEFERRED
INFLOWS OF RESOURCES,
AND FUND BALANCES 4,679,060$ 1,233,267$ -$ 749,105$ 92,936$ 104,838$ 565,339$ 117,208$
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 Assets, Liabilities, Deferred Inflows of Resources and Fund Balances
Economic Development Authority
December 31, 2020 (Continued)
TIF 29 TIF 30 TIF 34 TIF 39 TIF 40 TIF 41 GAAP Total
Front Porch CMHP Interchange Otter Creek Briggs UMC Reconciliation EDA
ASSETS
Cash and investments 160,026$ 112,177$ 35,662$ -$ 335$ -$ -$ 2,881,239$
Receivables
Unremitted taxes - - - - - - - 2,367
Delinquent taxes - - - - - - - 3,265
Accounts - - - - - - - 525
Intrafund receivable - - - - - - (1,309,308) -
Prepaid items - - - - - - - 3,186
Notes receivable - - - - - - - 183,693
Land held for resale - - - - - - - 3,466,370
TOTAL ASSETS 160,026$ 112,177$ 35,662$ -$ 335$ -$ (1,309,308)$ 6,540,645$
LIABILITIES
Accounts and contracts payable -$ -$ -$ -$ -$ -$ -$ 11,696$
Due to other governmental units - - - - - - - 259
Intrafund payable - 103,215 - 130,596 - 1,031,000 (1,309,308) -
Unearned revenue - -- -- - (163,200) -
Escrow deposits - -- -- -- 6,720
Total liabilities - 103,215 - 130,596 - 1,031,000 (1,472,508) 18,675
DEFERRED INFLOWS OF RESOURCES
Unavailable revenue - property taxes - - - - - - - 3,265
FUND BALANCES
Nonspendable - - - - - - - 3,186
Restricted 160,026 8,962 35,662 (130,596) 335 (1,031,000) 163,200 1,904,184
Assigned - - - - - - - 4,611,335
Total fund balance 160,026 8,962 35,662 (130,596) 335 (1,031,000) 163,200 6,518,705
TOTAL LIABILITIES, DEFERRED
INFLOWS OF RESOURCES,
AND FUND BALANCES 160,026$ 112,177$ 35,662$ -$ 335$ -$ (1,309,308)$ 6,540,645$
Required or Actual Decertification Date 12/31/2029 12/31/2029 12/31/2022 12/31/2021 12/31/2045 12/31/2030
TIF District Type Housing Housing Redevelopment Economic Housing Economic
(d) = decertified Development Development
83
CITY OF MONTICELLO
Schedule of Revenues, Expenditures and Other Financing Uses
Economic Development Authority
For the Year Ended December 31, 2020
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 355,080$ -$ -$ -$ -$ -$ -$ -$
Tax increments - - - - 39,084 - 298,946 56,104
Intergovernmental - 185,000 - - - - - -
Investment earnings 25,519 19,994 - 6,826 1,401 2,000 6,213 1,701
Interest on loans 9,622 3,739 - -- - - -
Other revenues 2,280 - - - - - - -
Total revenues 392,501 208,733 - 6,826 40,485 2,000 305,159 57,805
Expenditures:
Current
Salary and wages 97,169 - - - - - - -
Benefits 37,021 - - - - - - -
Professional services - legal 17,318 - - - - - - -
Professional services - other 61,742 - - 105 105 105 990 105
LPV Insurance 1,224 - - - - - - -
Legal and general publications 106 - - - 35 - 35 35
Property taxes 1,641 - - - - - - -
Marketing 1,149 - - - - - - -
Dues and membership 5,796 - - - - - - -
Utilities 2,428 - - - - - - -
IT services 2,665 - - - - - - -
Travel and conferences 1,348 - - - - - - -
Land adjustment to market 245,118 - - - - - - -
Qualifying TIF expenditures - - - - - - - -
Other expenditures 70,625 190,000 - - - - - -
Excess increments - - - - - - 137,813 -
Interest on intrafund loans - - - - - - - -
PAYG payments to third parties - - - - - - 11,303 -
Total expenditures 545,350 190,000 - 105 140 105 150,141 140
Excess (deficiency) of revenues over (under)
expenditures (152,849) 18,733 - 6,721 40,345 1,895 155,018 57,665
Other financing uses
Transfers out - - - - - - - -
Net change in fund balances (152,849) 18,733 - 6,721 40,345 1,895 155,018 57,665
Fund balance at beginning of year 4,811,867 1,214,534 (44,497) 742,384 52,591 102,943 245,223 59,543
Fund balance at end of year 4,659,018$ 1,233,267$ (44,497)$ 749,105$ 92,936$ 104,838$ 400,241$ 117,208$
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)
84
CITY OF MONTICELLO
Schedule of Revenues, Expenditures and Other Financing Uses
Economic Development Authority
For the Year Ended December 31, 2020 (Continued)
TIF 29 TIF 30 TIF 34 TIF 39 TIF 40 TIF 41 GAAP Total
Front Porch CMHP Interchange Otter Creek Briggs UMC Reconciliation EDA
Revenues
Property taxes -$ -$ -$ -$ -$ -$ -$ 355,080$
Tax increments 33,749 15,145 218,945 45,479 372 - - 707,824
Intergovernmental - - - - - - - 185,000
Investment earnings 2,731 2,126 501 84 3 - - 69,099
Interest on loans - - - - - - (9,622) 3,739
Other revenues - - - - - - - 2,280
Total revenues 36,480 17,271 219,446 45,563 375 - (9,622) 1,323,022
Expenditures:
Current
Salary and wages - - - - - - - 97,169
Benefits - - - - - - - 37,021
Professional services - legal - - - - 40 - - 17,358
Professional services - other 105 105 105 105 - - - 63,572
LPV Insurance - - - - - - - 1,224
Legal and general publications 35 35 35 35 - - - 351
Property taxes - - - - - - - 1,641
Marketing - - - - - - - 1,149
Dues and membership - - - - - - - 5,796
Utilities - - - - - - - 2,428
IT services - - - - - - - 2,665
Travel and conferences - - - - - - - 1,348
Land adjustment to market - - - - - - - 245,118
Qualifying TIF expenditures - - - - - 1,031,000 - 1,031,000
Other expenditures - - - - - -- 260,625
Excess increments - - - - - -- 137,813
Interest on intrafund loans - 2,850 - 6,772 - -(9,622) -
PAYG payments to third parties - -- -- -- 11,303
Total expenditures 140 2,990 140 6,912 40 1,031,000 (9,622) 1,917,581
Excess (deficiency) of revenues over (under)
expenditures 36,340 14,281 219,306 38,651 335 (1,031,000) - (594,559)
Other financing uses
Transfers out - - (200,000) - - - - (200,000)
Net change in fund balances 36,340 14,281 19,306 38,651 335 (1,031,000) - (794,559)
Fund balance at beginning of year 123,686 (5,319) 16,356 (169,247) - - 163,200 7,313,264
Fund balance at end of year 160,026$ 8,962$ 35,662$ (130,596)$ 335$ (1,031,000)$ 163,200$ 6,518,705$
Required or Actual Decertification Date 12/31/2029 12/31/2029 12/31/2022 12/31/2021 12/31/2045 12/31/2030
TIF District Type Housing Housing Redevelopment Economic Housing Economic
(d) = decertified Development Development
85
CITY OF MONTICELLO
Schedule of Assets, Liabilities, Deferred Inflows of Resources and Fund Balances
Debt Service Activities
December 31, 2020
312 318 319 320 321 322 323 324
2011A 2014A 2015B 2016A 2017A 2018A 2019A 2020A
Refunding Bonds Bonds Bonds Bonds Bonds Bonds Bonds Total
ASSETS
Cash and cash equivalents 79,015$ 148,910$ 121,883$ 399,837$ 278,965$ 80,415$ 40,190$ 124,934$ 1,274,149$
Receivables
Unremitted special assessments 32,641 - - 326 238 - - - 33,205
Deliquent special assessments - - - 137 1,450 - - - 1,587
Deferred special assessments - - 91,208 391,878 226,644 - 81,840 509,250 1,300,820
Total assets 111,656$ 148,910$ 213,091$ 792,178$ 507,297$ 80,415$ 122,030$ 634,184$ 2,609,761$
LIABILITIES
Accounts and contracts payable 196$ 196$ 196$ 196$ 646$ 696$ 696$ -$ 2,822$
DEFERRED INFLOWS OF RESOURCES
Unavailable revenue - special assessments - - 91,208 392,015 228,094 - 81,840 509,250 1,302,407
FUND BALANCES
Restricted for debt service 111,460 148,714 121,687 399,967 278,557 79,719 39,494 124,934 1,304,532
Total liabilities, deferred inflows
of resources, and fund balances 111,656$ 148,910$ 213,091$ 792,178$ 507,297$ 80,415$ 122,030$ 634,184$ 2,609,761$
General Obligation Bonds
86
CITY OF MONTICELLO
Schedule of Revenues, Expenditures and Other Financing Sources (Uses)
Debt Service Activities
For the Year Ended December 31, 2020
312 318 319 320 321 322 323 324
2011A 2014A 2015B 2016A 2017A 2018A 2019A 2020A
Refunding Bonds Bonds Bonds Bonds Bonds Bonds Bonds Total
Revenues
Property taxes 172,641$ 535,501$ 198,385$ 405,039$ 427,367$ 472,434$ 728,620$ -$ 2,939,987$
Special assessments 113,348 - 23,416 145,564 47,347 - 14,833 124,520 469,028
Investment earnings (8,015) 3,163 2,557 8,875 6,141 1,817 912 414 15,864
Total revenues 277,974 538,664 224,358 559,478 480,855 474,251 744,365 124,934 3,424,879
Expenditures
Debt service
Principal 1,230,000 365,000 160,000 450,000 370,000 305,000 505,000 - 3,385,000
Interest and fiscal charges 29,662 146,638 52,087 76,137 100,927 146,575 204,882 - 756,908
1,259,662 511,638 212,087 526,137 470,927 451,575 709,882 - 4,141,908
(981,688) 27,026 12,271 33,341 9,928 22,676 34,483 124,934 (717,029)
200,000 - - - - - - - 200,000
(781,688) 27,026 12,271 33,341 9,928 22,676 34,483 124,934 (517,029)
893,148 121,688 109,416 366,626 268,629 57,043 5,011 - 1,821,561
Total expenditures
Excess (deficiency) of
revenues over expenditures
Other financing sources
Transfers in
Net change in fund balance
Fund balance at beginning of year
Fund balance at end of year 111,460$ 148,714$ 121,687$ 399,967$ 278,557$ 79,719$ 39,494$ 124,934$ 1,304,532$
General Obligation Bonds
87
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88
STATISTICAL SECTION
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
STATISTICAL SECTION
Financial trendsNet Position by Component - Last Ten Fiscal Years 89
Changes in Net Position - Last Ten Fiscal years 90
General Governmental Tax Revenues by Source - Last Ten Fiscal Years 92 Fund Balances of Governmental Funds - Last Ten Fiscal Years 93
Changes in Fund Balances of Governmental Funds - Last Ten Fiscal Years 94
Governmental Funds Tax Revenues by Source - Last Ten Fiscal Years 95
Revenue capacity
Tax Capacity Value and Estimated Market Value of Taxable Property - Last Ten Fiscal Years 96
Property Tax Rates - All Direct and Overlapping Governments - Last Ten Fiscal Years 97
Property Tax Levies and Collections - Last Ten Fiscal Years 98
Principal Property Taxpayers - Current Year and Nine Years Ago 99
New Construction and Bank Deposits - Last Ten Fiscal Years 100
Water Sold by Customer Type - Last Ten Fiscal Years 101
Water and Sewage Utility Rates - Last Ten Fiscal Years 102
Debt capacity
Ratios of Outstanding Debt by Type - Last Ten Fiscal Years 103
Ratios of Net General Obligation Bonded Debt Outstanding - Last Ten Fiscal Years 104
Legal Debt Margin Information - Last Ten Fiscal Years 105
Computation of Direct and Overlapping Debt - As of December 31, 2020 106
Schedule of General Obligation Revenue Bond Coverage - Last Ten Fiscal Years 107
Economic and demographic information
Demographic and Economic Statistics - Last Ten Fiscal Years 108
Principal Employers - Current Year and Nine Years Ago 109
Operating information
City Government Employees by Function/Program - Last Ten Fiscal Years 110
Operating Indicators by Function - Last Ten Fiscal Years 111
Capital Assets Statistics by Function - Last Ten Fiscal Years 113
Schedule of Cash Flows Adjusted for Additional City Funding of Fiber Optics Fund -Last Six Fiscal Years 114
CITY OF MONTICELLO
Net Position by Component
Last Ten Fiscal Years
(accrual basis of accounting)
2011 2012 2013 2014 2015 2016 2017 2018 2019 2020
Governmental activities
Net investment in
capital assets 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$ 40,836,892$
Restricted 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 5,397,034
Unrestricted 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 32,716,074
Total governmental
net position 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$ 78,950,000$
Business-type activities
Net investment in
capital assets 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$ 41,000,179$
Restricted 19,350 19,350 - - - - - - - -
Unrestricted 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 17,649,288
Total business-type
net position 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$ 58,649,467$
Primary government
Net investment in
capital assets 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$ 81,837,071$
Restricted 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 5,397,034
Unrestricted 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 50,365,362
Total primary government
net position 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$ 137,599,467$
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
$100
2011 2012 2013 2014 2015 2016 2017 2018 2019 2020MillionsPrimary Government Net Position
Net investment in
capital assets
Restricted net
position
Unrestricted net
position
89
CITY OF MONTICELLO
Changes in Net Position
Last Ten Fiscal Years
(accrual basis of accounting)
Expenses 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020
Governmental activities
General government 2,111,710$ 2,103,737$ 1,623,727$ 1,488,243$ 1,447,725$ 1,694,111$ 1,656,666$ 1,614,613$ 1,927,752$ 2,335,614$
Public safety 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 2,658,246
Public works 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 4,777,282
Sanitation 495,693 500,037 487,268 517,956 563,477 600,300 614,328 615,586 610,944 681,948
Transit - - - 10,000 40,000 41,250 3,191 18,333 - -
Recreation and culture 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 3,289,716
Economic development 1,199,936 803,594 1,005,813 1,084,620 1,547,875 756,620 488,380 1,206,067 872,984 1,914,825
Interest and fiscal charges 1,248,716 1,298,869 235,265 649,854 735,753 565,774 514,558 617,344 752,595 756,546
Total governmental activities 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 16,414,177
Business-type activities
Water utility 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 1,212,656
Sewage utility 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 2,960,153
Stormwater - - - - - - - - - 658,771
Liquor 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 6,395,558
Fiber optics 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 2,063,712
Deputy registrar - - 293,531 300,236 313,968 345,492 390,658 421,662 458,695 538,625
Total business-type activities 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 13,829,475
Total primary government expenses 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$ 30,243,652$
Program Revenues
Governmental activities
Charges for services
General government 521,182$ 619,992$ 147,244$ 180,145$ 214,087$ 274,309$ 239,460$ 207,802$ 232,336$ 523,919$
Public safety 202,237 179,540 163,366 164,616 320,158 894,311 851,307 780,236 921,916 799,227
Public works 508,077 383,066 544,404 371,671 521,697 527,425 283,241 217,675 373,581 156,657
Sanitation 52,304 53,077 16,653 48,385 104,786 89,956 80,774 169,337 381,328 522,088
Recreation and culture 1,240,970 1,150,273 1,307,149 1,331,581 1,488,197 1,437,659 1,493,651 1,630,915 1,602,473 652,729
Economic development - - - - 14,653 301,232 13,846 2,832 14,149 10,915
Operating grants and contributions 253,127 252,784 293,710 295,828 355,041 389,005 429,697 428,443 431,004 463,335
Capital grants and contributions 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 1,289,990
Total governmental activities
program revenues 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 4,418,860
Business-type activities
Charges for services
Water utility 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 1,541,694
Sewage utility 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 2,559,354
Stormwater - - - - - - - - 61,757 241,873
Liquor 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 7,405,960
Fiber optics 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 1,851,845
Deputy registrar - - 456,285 497,798 535,931 562,891 594,777 694,263 953,855 801,502
Capital grants and contributions - - - 488,628 1,454,980 2,000,456 699,901 925,195 1,646,123 1,488,339
Total business-type activities
program revenues 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 15,890,567
Total primary government
program revenues 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$ 20,309,427$
(continued)
90
CITY OF MONTICELLO
Changes in Net Position
Last Ten Fiscal Years
(accrual basis of accounting)
2011 2012 2013 2014 2015 2016 2017 2018 2019 2020
Net (expense)/revenue
Governmental activities (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)$ (11,995,317)$
Business-type activities (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 2,061,092
Total primary government net expense (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)$ (9,934,225)$
General Revenues and Other
Changes in Net Position
Governmental activities
Taxes
Property taxes 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$ 10,874,313$
Tax increment 1,044,791 1,024,134 965,935 826,363 727,617 668,352 648,031 638,278 679,925 707,824
Franchise taxes 341,362 339,518 320,640 357,409 333,484 412,217 436,248 386,622 432,934 418,030
Unrestricted grants and
contributions 19,359 38,618 65,228 27,502 - - - - - 886,544
Investment earnings 1,467,780 767,722 (189,128) 784,347 278,465 375,614 379,107 364,364 969,216 666,325
Other - 11,575 3,885 217,643 30,473 11,180 - - - -
Gain on sale of capital assets 354,501 540,272 489,782 - - - 1,725 15,000 - -
Transfers 713,655 (2,420,489) 278,500 (3,411,500) 2,301,045 969,461 (550,265) 1,000,000 (2,223,245) 1,560,000
Total governmental activities 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 15,113,036
Business-type activities
Unrestricted grants and
contributions - - - - - - - - - 151,794
Investment earnings 495,484 264,589 (117,175) 399,757 108,191 128,080 151,126 162,003 482,120 332,938
Miscellaneous 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 (713,655) 2,420,489 (278,500) 3,411,500 (2,301,045) (969,461) 550,265 (1,000,000) 2,223,245 (1,560,000)
Total business-type activities 1,337,338 2,785,765 (330,207) 24,801,708 (7,616,244) (479,263) 701,391 (458,751) 2,705,365 (1,075,268)
Total primary government 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$ 14,037,768$
Changes in Net Position
Governmental activities 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)$ 3,117,719$
Business-type activities (2,980,648) (585,937) (3,453,086) 24,278,746 (6,662,412) 1,180,643 1,783,143 741,845 5,151,927 985,824
Total primary government (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$ 4,103,543$
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 Stormwater 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.
91
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
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
2020 10,874,313 707,824 418,030 12,000,167
Change
2011-2020 46.8%-32.3%22.5%36.5%
Source: Finance Department
$-
$2
$4
$6
$8
$10
$12
2011 2012 2013 2014 2015 2016 2017 2018 2019 2020MillionsTax Revenues by Source
Property Tax
Tax Increment
Franchise Tax
92
CITY OF MONTICELLO
Fund Balances of Governmental Funds
Last Ten Fiscal Years
(modified accrual basis of accounting)
2011 2012 2013 2014 2015 2016 2017 2018 2019 2020
General Fund
Nonspendable 386,616$ 342,380$ 258,100$ 126,327$ 113,302$ 134,245$ 110,869$ 124,650$ 135,139$ 145,603$
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 6,494,632
Total general fund 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$ 6,640,235$
All other governmental funds
Nonspendable 1,299,057$ 197,123$ 1,822,926$ 1,815,087$ 4,259,743$ 3,690,330$ 23,488$ 47,614$ 72,028$ 27,600$
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 5,008,177
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 24,358,352
Unassigned
Special revenue (141,890) - - - - - - - - -
Capital projects (1,435,666) - - - - - - - - -
Total all other
governmental funds 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$ 29,394,129$
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.
93
CITY OF MONTICELLO
Changes in Fund Balances of Governmental Funds
Last Ten Fiscal Years
(modified accrual basis of accounting)
2011 2012 2013 2014 2015 2016 2017 2018 2019 2020
Revenues
Property taxes 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$ 10,860,311$
Tax increments 1,044,791 1,024,134 965,935 826,363 727,617 668,352 648,031 638,278 679,925 707,824
Franchise taxes 341,362 339,518 320,640 357,409 333,484 412,217 436,248 386,622 432,934 418,030
Special assessments 1,856,134 1,902,871 2,065,944 1,912,932 3,318,901 984,390 946,669 700,190 712,681 633,016
Licenses and permits 249,999 275,699 331,711 378,810 461,049 668,602 600,933 504,464 603,925 521,369
Intergovernmental 1,434,420 540,475 1,264,781 732,366 1,520,239 2,041,362 1,340,094 911,477 896,638 1,656,228
Charges for services 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 1,474,527
Fines and forfeitures 85 14,338 1,725 1,900 42,474 30,656 36,702 45,350 40,054 31,852
Investment earnings 1,467,780 767,722 (183,242) 738,956 261,856 357,112 364,786 351,620 930,128 641,446
Interest on loans - - - - - - - - 10,929 8,635
Other revenues 603,019 753,832 700,776 413,113 475,170 589,394 335,530 302,469 436,264 521,109
Total revenues 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 17,474,347
Expenditures
General government 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 2,170,661
Public safety 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 2,743,954
Public works 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 1,899,315
Sanitation 495,693 500,037 505,996 517,956 563,477 600,300 614,328 615,586 610,944 681,948
Transit - - - 10,000 40,000 41,250 3,191 18,333 - -
Recreation and culture 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 2,614,095
Economic development 1,198,449 800,540 1,011,961 1,084,620 1,237,107 530,746 486,706 1,210,053 871,950 1,917,973
Capital outlay 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 4,910,889
Debt service
Principal 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 3,385,000
Interest and fiscal charges 1,383,095 1,290,430 930,982 658,983 570,753 529,116 470,508 522,220 634,241 756,908
Bond issuance costs - - - - 71,358 107,050 93,300 94,350 138,350 53,475
Total expenditures 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 21,134,218
Excess of revenues
over (under) expenditures (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) (3,659,871)
Other financing sources (uses)
Long-term debt issued 10,735,000 - - 6,080,000 2,605,000 4,900,000 5,000,000 5,000,000 8,000,000 2,155,000
Premium (discount) on debt issued 301,910 - - (12,374) 46,898 97,503 78,814 40,882 131,662 101,280
Refunded bonds redeemed - - (10,690,000) - - - - - - -
Sale of capital assets - 11,575 12,428 - 30,473 11,180 1,725 15,000 29,340 333,550
Transfers in 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 2,760,000
Transfers out (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) (1,200,000)
Total other financing sources (uses)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 4,149,830
Net change in fund balances 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$ 489,959$
Debt service as percentage
of noncapital expenditures 42.6% 41.4%41.7%40.0%35.1%38.0%30.4%20.1%26.4%24.9%
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.
94
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
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
2020 10,860,311 707,824 418,030 11,986,165
Change
2011-2020 48.9%-32.3%22.5%38.1%
Source: Finance Department
$-
$2
$4
$6
$8
$10
$12
2011 2012 2013 2014 2015 2016 2017 2018 2019 2020MillionsTax Revenues by Source
Property Tax
Tax Increment
Franchise Tax
95
CITY OF MONTICELLO
Tax Capacity Value and Estimated Market Value of Taxable Property
Last Ten Fiscal Years
Total Net Tax
Taxable Net Capacity as a
Residential % of Commercial % of Personal % of Ag/Misc % of Tax Capacity % of Total Direct Total Percentage of
Year Property Total Property Total Property Total Property Total Value Total Tax Rate Market Value Market Value
2011 5,307,260$ 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%
2020 9,422,801 29.6% 21,941,590 69.0% 296,422 0.9% 135,311 0.4% 31,796,124 100.0%34.967 2,135,371,400 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
96
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
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
2020 34.97 44.42 15.87 1.19 96.44
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
2011 2012 2013 2014 2015 2016 2017 2018 2019 2020Rate %Property Tax Rates
For the three highest taxing authorities Wright
County
School
District
#882
City of
Monticello
97
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
2011 7,677,351$ 293,075$ 7,384,276$ 7,178,807$ 97.2% 185,763$ 7,364,570$ 99.7% (19,371)$ 335$ 0.0%
2012 7,850,042 - 7,850,042 7,759,174 98.8% 33,453 7,792,627 99.3% (57,061) 354 0.0%
2013 7,900,724 - 7,900,724 7,827,356 99.1% 40,255 7,867,611 99.6% (31,626) 1,487 0.0%
2014 8,151,086 - 8,151,086 8,109,373 99.5% 33,288 8,142,661 99.9% (7,013) 1,412 0.0%
2015 8,535,565 - 8,535,565 8,498,745 99.6% 22,831 8,521,576 99.8% (12,524) 1,465 0.0%
2016 9,205,700 - 9,205,700 9,177,787 99.7% 23,383 9,201,170 100.0% (3,733) 797 0.0%
2017 9,430,000 - 9,430,000 9,416,303 99.9% 12,151 9,428,454 100.0% (1,546) - 0.0%
2018 9,870,000 - 9,870,000 9,850,163 99.8% 10,991 9,861,154 99.9% (5,488) 3,358 0.0%
2019 10,310,000 - 10,310,000 10,289,339 99.8% 11,864 10,301,203 99.9%(146) 8,651 0.1%
2020 10,800,000 - 10,800,000 10,770,454 99.7%- 10,770,454 99.7%(928) 28,618 0.3%
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
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 680,301 - 680,301 679,925 99.9%- 679,925 99.9%- 376 0.1%
2020 711,905 - 711,905 707,825 99.4%- 707,825 99.4%(2,558) 1,522 0.2%
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
98
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)830,869,200$ 16,610,285$ 1 52.2%312,906,200$ 6,252,112$ 1 37.6%
IRET Properties 26,233,600 327,920 2 1.0%
Mills Fleet Farm (Venturian Holdings)12,911,000 255,220 3 0.8%
Target Corporation 10,000,000 199,250 4 0.6%11,818,900 235,628 3 1.4%
Walmart Real Estate Bus Trust 9,687,200 192,994 5 0.6%12,804,400 255,338 2 1.5%
RCG-Monticello MN, LLC 9,331,300 182,126 6 0.6%
CentraCare Medical Center (New River)7,272,000 145,440 7 0.5%7,617,300 152,346 4 0.9%
Home Depot USA, Inc.6,501,500 129,280 8 0.4%7,224,000 143,730 5 0.9%
Clear Creek Land Company, LLC 6,176,000 122,770 9 0.4%
Spirit Master Funding (Muller Theatres)5,704,700 112,917 10 0.4%5,536,400 109,597 7 0.7%
L&P Ventures, LLC 5,529,100 109,832 6 0.7%
AX TC Retail, LP 5,156,900 101,638 8 0.6%
BBF Properties 3,977,400 78,798 9 0.5%
Tapper's Holdings of Monticello, LLC 3,999,400 78,488 10 0.5%
924,686,500$ 18,278,202$ 57.5%376,570,000$ 7,517,507$ 45.2%
(1) The market value and taxable net tax capacity value is for taxes levied in 2020, which are payable in 2021.
Source: Wright County Certificate of Taxes and Taxable Properties and 2011 City of Monticello Financial Report
2020 2011
99
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
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%
2020 1 1,050,000 68 12,473,308 13,523,308 2,387,138 24.7%
(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
$25,000,000
2011 2012 2013 2014 2015 2016 2017 2018 2019 2020
New Residential and Commercial Construction
Residential Commercial
100
CITY OF MONTICELLO
Water Sold by Customer Type
Last Ten Fiscal Years
(gallons)
Total
% of % of % of % of Water % of
Year Residential Total Commercial Total Industrial Total Government Total Sold Total
2011 348,580,072 66.0%84,194,027 15.9%50,971,196 9.7%44,219,755 8.4%527,965,050 100.0%
2012 426,358,402 69.0%97,281,410 15.7%46,654,712 7.5%47,866,428 7.7%618,160,952 100.0%
2013 383,079,041 68.8%85,819,687 15.4%45,954,136 8.2%42,206,803 7.6%557,059,667 100.0%
2014 328,835,772 68.2%79,370,922 16.5%38,308,124 7.9%35,566,000 7.4%482,080,818 100.0%
2015 325,188,041 68.1%76,283,322 16.0%38,897,216 8.1%37,005,919 7.8%477,374,498 100.0%
2016 329,068,876 67.7%77,795,226 16.0%42,407,860 8.7%36,647,583 7.5%485,919,545 100.0%
2017 371,596,967 67.7%93,770,712 17.1%43,220,312 7.9%40,409,649 7.4%548,997,640 100.0%
2018 352,322,681 67.3%89,911,481 17.2%43,067,083 8.2%38,128,401 7.3%523,429,646 100.0%
2019 307,411,101 64.0%93,783,767 19.5%44,120,527 9.2%35,187,913 7.3%480,503,308 100.0%
2020 392,258,038 70.1%92,058,431 16.5%39,630,515 7.1%35,351,965 6.3%559,298,949 100.0%
Source: City of Monticello utility billing department
0
100
200
300
400
500
600
700
2011 2012 2013 2014 2015 2016 2017 2018 2019 2020MillionsWater Sold by Customer Type (gallons)
Government
Industrial
Commercial
Residential
101
CITY OF MONTICELLO
Water and Sewage Utility Rates
Last Ten Fiscal Years
Rate Tier 1 Rate Tier 2 Rate Tier 3 Rate Tier 4 Rate Tier 1 Rate Tier 2 Rate Tier 3 Rate Tier 4 Rate Tier 1 Rate Tier 1
Base Rate 501–4,000 4,001–13,369 Over 13,369 Base Rate 501–4,000 4,001–13,369 Over 13,369 Base Rate Over 500
Fiscal First 500 per 100 per 100 per 100 First 500 per 100 per 100 per 100 First 500 per 100
Year Cubic Feet Cubic Feet Cubic Feet Cubic Feet Cubic Feet Cubic Feet Cubic Feet Cubic Feet Cubic Feet Cubic Feet
2011 14.30$ 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
2020 7.10 1.74 2.02 2.21 7.10 1.74 2.02 2.21 9.18 5.89
Note: The city began billing monthly in 2017.
Source: City of Monticello fee schedule
Residential Commercial
Water Sewage
Residential Commercial
Water Sewage
102
CITY OF MONTICELLO
Ratios of Outstanding Debt by Type
Last Ten Fiscal Years
2011 2012 2013 2014 2015 2016 2017 2018 2019 2020
Governmental activities
General obligation bonds
Special assessment 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$ 9,290,000$
Other 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 10,770,000
Tax abatement - - - - - - 2,960,000 7,800,000 8,390,000 7,845,000
Net premium (discount)818,803 744,748 265,320 67,350 190,196 159,266 128,336 105,777 69,187 44,028
Total GO bonds 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 27,949,028
Certificates of indebtedness - - 445,000 385,000 325,000 265,000 200,000 135,000 70,000 -
Total general obligation debt 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 27,949,028
Non-general obligation bonds
Revenue 3,690,898 2,739,341 1,782,784 985,000 - - - - - -
Total governmental activites 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$ 27,949,028$
Business-type activities
General obligation
revenue bonds 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$ 1,720,000$
Non-general obligation
26,445,000 26,445,000 26,445,000 - - - - - - -
- - - - 615,268 1,927,850 1,998,402 1,903,000 1,800,000 1,696,000
Revenue bonds
PFA notes
Net premium (discount)(434,904) (412,366) (360,211) 31,941 30,339 27,354 23,495 21,510 19,524 17,539
Total business-type activities 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$ 3,433,539$
Total primary government 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$ 31,382,567$
% of personal income (1)15.3%13.2%10.1%5.1%4.4%4.2%4.2%4.4%4.8%4.4%
Per capita debt (1)5,554$ 5,071$ 4,055$ 2,106$ 1,931$ 1,899$ 1,944$ 2,093$ 2,399$ 2,260$
(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.
103
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)
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
2020 29,686,567 2,565,047 27,121,520 1.27%1,953
(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.
104
CITY OF MONTICELLO
Legal Debt Margin Information
Last Ten Fiscal Years
2011 2012 2013 2014 2015 2016 2017 2018 2019 2020
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$ $ 64,061,142
Total net debt
applicable to
debt limit 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 14,390,000
Legal debt margin 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$ $ 49,671,142
Total net debt
applicable to
debt limit as a
percentage
of debt limit 13.1%10.4%17.4%23.9%19.3%14.5%15.2%22.5%32.5%22.5%
Market value $ 2,135,371,400
Debt limit (3% of market value)$ 64,061,142
Debt applicable to limit
General obligation bonds $ 29,625,000
Less amounts for general obligation bonds
not subject to debt limit (15,235,000)
Total net debt applicable to limit 14,390,000
Legal debt margin $ 49,671,142
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 2020
Fiscal Year
Legal debt limit
105
CITY OF MONTICELLO
Computation of Direct and Overlapping Debt
As of December 31, 2020
Estimated
Gross percentage Amount
bonded debt applicable applicable to
Jurisdiction outstanding to city (1)city
DIRECT DEBT:
City of Monticello 27,949,028$ 100.0%27,949,028$
OVERLAPPING DEBT:
I.S.D. 882 47,680,000 73.6% 35,092,480
Wright County 146,970,000 16.5% 24,250,050
Total Overlapping Debt 59,342,530
Total direct and overlapping debt $ 87,291,558
(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.
106
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%
2020 2,559,354 1,663,234 896,120 294,000 72,972 366,972 244.2%
(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)
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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)
2011 12,759 7.5%3,921 462,041,667$ 36,728$
2012 12,935 6.2%3,989 498,178,590 39,241
2013 12,964 4.6%4,031 520,193,464 40,898
2014 12,993 3.8%4,010 531,660,567 41,844
2015 13,125 3.7%4,115 570,058,125 43,710
2016 13,299 4.3%4,119 603,960,786 45,458
2017 13,409 3.5%4,074 620,461,248 46,333
2018 13,553 3.4%4,157 644,811,081 48,370
2019 13,782 3.8%4,053 691,594,542 50,480
2020 13,886 4.4%4,108 716,642,574 51,609
Notes/sources:
(1)
(2)
(3)
(4)
(5)
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 Financial Report for the year ended June 30, 2020.
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.
108
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 8.2%2,000 1 27.6%
ISD No. 882 (Monticello)576 2 7.9%544 2 7.5%
CentraCare Medical Center (New River)500 3 6.8%500 3 6.9%
Cargill Kitchen Solutions (Sunny Fresh)350 4 4.8%250 5 3.5%
Wal-Mart Supercenter 300 5 4.1%325 4 4.5%
City of Monticello 230 6 3.1%147 8 2.0%
Home Depot 150 7 2.0%160 7 2.2%
Target 150 7 2.0%
Ultra Machine Corporation 140 9 1.9%140 9 1.9%
Cub Foods 100 10 1.4%180 6 2.5%
WSI Industries, Inc.100 10 1.4%
Standard Iron & Wire Works 100 10 1.4%
3,196 45.3%4,346 60.0%
(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 2020A Bond Statement and 2011 City of Monticello CAFR
2020 2011
109
CITY OF MONTICELLO
City Government Employees by Function/Program
Last Ten Fiscal Years
2011 2012 2013 2014 2015 2016 2017 2018 2019 2020
Employees by function
General Fund
General government 11.00 11.00 11.00 12.50 12.50 13.50 11.50 11.50 11.50 11.75
Public Safety
Building 3.00 3.00 3.00 3.00 4.00 4.00 4.00 3.00 3.00 3.00
Fire marshal - - - - - - - 1.00 1.00 1.00
Public works
Engineering 3.00 3.00 1.00 1.00 1.00 1.00 1.00 2.00 2.00 2.00
Maintenance(1)19.00 19.00 19.00 18.50 18.50 18.50 10.50 9.50 9.60 8.80
Recreation and culture
Parks 5.00 5.00 5.00 5.00 5.00 5.00 13.00 10.00 8.90 9.90
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 7.50 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 38.10 37.30 35.00 14.70
Enterprise Funds
Sewer/water 4.00 4.00 4.00 4.00 5.00 5.00 6.00 6.00 6.50 6.50
Deputy registrar(3)5.00 5.00 5.00 5.00 5.00 5.00 7.50 7.00 7.60 6.80
Liquor store 10.00 10.00 10.00 11.50 11.50 11.50 12.40 13.10 14.20 11.90
FiberNet(4)11.50 11.50 8.50 8.50 8.50 - - - - -
Total 118.00 118.00 113.00 115.00 117.00 109.50 113.50 109.90 108.80 85.85
Employees by fund type
General Fund 43.00 43.00 41.00 42.00 43.00 44.00 42.00 39.00 38.00 38.45
Special Revenue Funds 44.50 44.50 44.50 44.00 44.00 44.00 45.60 44.80 42.50 22.20
Enterprise Funds 30.50 30.50 27.50 29.00 30.00 21.50 25.90 26.10 28.30 25.20
118.00 118.00 113.00 115.00 117.00 109.50 113.50 109.90 108.80 85.85
FT = Full-time PT = Part-time
(1) Includes seasonal public works
(2) Years 2011-2013 were estimated 2014 levels as data was not previously tracked. Reduction in 2020 was due to COVID-19 pandemic.
(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
110
CITY OF MONTICELLO
Operating Indicators by Function
Last Ten Fiscal Years
2011 2012 2013 2014 2015 2016 2017 2018 2019 2020
Function
Fire
Calls for service 284 237 270 286 262 270 312 269 294 272
Public works
Salt (tons)445 300 475 385 534 525 461 585 752 730
Sand (tons)547 335 325 600 285 300 397 329 432 400
Crack sealant (pounds)11,384 1,492 25,739 23,282 29,580 49,039 46,721 46,868 47,176 44,456
Asphalt repairs (tons of asphalt)253 220 225 190 293 220 167 164 492 443
Recreation and culture
Shade trees planted 140 220 275 270 257 280 320 305 314 220
Diseased trees removed 113 205 71 46 208 60 40 12 15 6
Trails maintained (miles)17 17 17 18 18 20 40 40 41 41
Community center users 190,014 175,272 211,234 204,134 199,228 197,523 188,124 183,523 183,521 71,632
Program sales 168,159$ 162,227$ 192,708$ 184,125$ 213,924$ 193,628$ 162,461$ 183,194$ 112,506$ 22,129$
Rental revenue 154,962$ 149,733$ 163,329$ 150,964$ 154,938$ 168,353$ 190,343$ 199,200$ 197,351$ 80,040$
Economic development
Permits issued 372 632 659 721 768 802 911 856 837 957
Permit valuation 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$ 32,453,366$
New single-family dwellings 2 22 52 72 44 61 64 58 56 68
Water
Meters/remotes replaced 215 418 235 598 694 991 734 606 426 54
Curb box repairs (water valves)200 100 100 100 100 100 100 50 4 25
Hydrant repair 430 300 300 203 430 250 177 159 65 35
Residential water gallons used 348,580,072 426,358,402 383,079,041 328,835,772 325,188,041 329,068,876 371,596,967 352,322,681 307,411,101 392,258,038
Avg. daily consumption (MG)1.557 1.798 1.621 1.400 1.308 1.419 1.580 1.540 1.401 1.650
Max. daily gallons pumped (MG)4.116 4.590 4.269 4.031 3.203 3.450 4.168 3.400 3.064 4.295
Sewer
Sewage flow (MG)431 408 392 435 417 432 445 434 473 450
Thickened sludge (wet tons)n/a n/a n/a 1,924 1,549 1,449 1,578 2,115 2,145 2,100
Thickened sludge (dry tons)n/a n/a n/a 264 236 216 229 333 336 325
Dry tons as % of wet tons n/a n/a n/a 0 0 0 14.5%15.7%15.7%15.5%
Library
Items checked out 228,886 237,938 263,220 199,182 195,235 190,433 182,986 182,691 171,460 112,334
Programs offered 153 149 173 169 167 212 290 287 243 102
Program participants 3,807 3,761 3,773 3,788 3,919 4,306 5,336 5,059 4,788 4,810
Fiscal Year
(continued)
111
CITY OF MONTICELLO
Operating Indicators by Function
Last Ten Fiscal Years (continued)
2011 2012 2013 2014 2015 2016 2017 2018 2019 2020
Fiber optics
Customers n/a n/a n/a 1,539 1,574 1,630 1,671 1,639 1,701 1,851
Service subscriptions n/a n/a n/a 2,755 2,656 2,589 2,528 2,388 2,381 2,439
TV customers n/a n/a n/a 813 714 641 543 458 395 323
Phone customers n/a n/a n/a 582 518 461 431 386 362 315
Internet customers n/a n/a n/a 1,360 1,424 1,487 1,554 1,544 1,624 1,801
Liquor store
Transactions n/a n/a n/a 229,236 237,535 235,901 248,356 261,071 267,276 260,957
Average liquor sale transaction n/a n/a n/a 21.90$ 22.42$ 22.39$ 22.42$ 22.56$ 23.07$ 27.48$
Beer sales 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$ 3,838,912$
Liquor sales 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$ 2,351,072$
Wine sales 748,908$ 812,832$ 860,817$ 868,779$ 927,732$ 889,082$ 894,151$ 904,385$ 894,005$ 982,113$
Other sales n/a n/a 138,854$ 145,903$ 166,654$ 171,420$ 192,615$ 201,482$ 212,052$ 232,452$
Gross profit margin % - beer 19.1%20.3%22.5%21.4%25.6%21.1%23.2%21.4%22.5%21.2%
Gross profit margin % - liquor 28.0%29.3%27.7%30.3%29.8%29.0%26.6%29.0%30.1%30.7%
Gross profit margin % - wine 28.5%31.4%29.7%30.7%31.5%32.5%34.4%32.5%31.8%33.4%
Annual sales increase 3.9%4.1%4.1%2.4%6.3%-0.7%5.6%5.7%4.7%16.1%
Deputy registrar (DMV)
Motor vehicle transactions 54,814 56,211 55,261 60,051 64,927 67,508 70,605 110,574 129,825 115,466
DNR transactions 5,616 5,465 5,727 5,949 5,914 6,318 5,873 7,009 8,148 8,424
Game/fish transactions 325 509 445 433 387 600 647 549 709 311
Drivers licenses transactions 579 814 951 1,462 1,294 1,465 1,390 1,411 1,283 2,927
Total transactions 61,334 62,999 62,384 67,895 72,522 75,891 78,515 119,543 139,965 127,128
Dealerships serviced n/a n/a 19 19 19 21 27 28 30 32
Net revenue per transaction 1.71$ 2.75$ 2.68$ 2.91$ 3.02$ 3.05$ 2.66$ 2.21$ 3.48$ 2.15$
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 in 2018. In late 2020, the DMV's system changed again to MNDrive, which also counts transactions differently.
Sources: Various city departments
Fiscal Year
112
CITY OF MONTICELLO
Capital Assets Statistics by Function
Last Ten Fiscal Years
2011 2012 2013 2014 2015 2016 2017 2018 2019 2020
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 69.0 70.0 70.0 70.0
Recreation and culture
Parks acreage 635 635 696 860 326 367 367 404 404 404
Parks 28 28 28 30 30 30 30 30 30 30
Park buildings 15 15 15 15 15 15 15 18 18 18
Community center (sq. ft.)81,000 81,000 82,000 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
113
CITY OF MONTICELLO
Schedule of Cash Flows Adjusted for Additional City Funding of Fiber Optics Fund
Last Six Fiscal Years
2015 2016 2017 2018 2019 2020
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$ 1,819,710$
Cash paid to suppliers for goods and services (1,332,231) (1,657,929) (1,955,033) (1,877,048) (1,465,167) (1,545,323)
Cash paid to employees (565,657) (322,670) (18,367) (205) (244) (4,086)
Cash paid to other funds for services provided (24,291) (26,929) - (1,530) (1,194) (1,050)
Net cash used by operating activities (188,943) (394,496) (87,023) (198,884) 323,188 269,251
Cash flows from noncapital financing activities
Transfers from other funds 450,000 350,000 180,000 130,000 - -
Intergovernmental revenues - - - - - 82,063
Net cash provided by noncapital financing activities 450,000 350,000 180,000 130,000 - 82,063
Cash flows from capital and related financing activities
Sale of assets 29,850 - - - - -
Acquisition of capital assets - - - - - (171,210)
Net cash provided (used) by capital and related
financing activities 29,850 - - - - (171,210)
Cash flows from investing activities
Interest on investments 8,255 5,783 4,490 3,216 16,259 14,001
Net increase (decrease) in cash and cash equivalents 299,162 (38,713) 97,467 (65,668) 339,447 194,105
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) (511,638)
Adjusted net decrease in cash and cash equivalents (314,550)$ (904,232)$ (594,619)$ (708,333)$ (172,910)$ (317,533)$
$(1,000,000)
$(800,000)
$(600,000)
$(400,000)
$(200,000)
$-
$200,000
$400,000
$600,000
2015 2016 2017 2018 2019 2020
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
114
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