2023 Monticello Annual Comprehensive Financial ReportAnnual Comprehensiv e Financial Report
Fo r t he Yea r Ende d De c embe r 31 , 2023
City of Monticello, Minnesota
505 Walnut Street • 763-295-2711 • ci.monticello.mn.us
City of Monticello
Wright County, Minnesota
Annual Comprehensive
Financial Report
FOR THE YEAR ENDED DECEMBER 31, 2023
Prepared by
THE FINANCE DEPARTMENT
Sarah Rathlisberger, Finance Director ● Liz Lindrud, Finance Manager
Julie Cheney, Finance Assistant ● Cheri Butler, Payroll Clerk
Debbie Gulbrandson, Finance Clerk ● Pat Kovich, Utility Billing Specialist
CITY OF MONTICELLO
Financial Statements
Table of Contents
December 31, 2023
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 11
Basic Financial Statements
Government-wide Financial Statements
Statement of Net Position 19
Statement of Activities 20
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 28
Statement of Cash Flows - Proprietary Funds 30
Notes to the Financial Statements 32
Required Supplementary Information
Schedule of Employer's Share and Non-Employer Proportionate Share of Net Pension Liability
- Public Employees Retirement Association 61
Schedule of Employer's Pension Contibutions - Public Employees Retirement Association 61
Schedule of Changes in the Fire Relief Association's Net Pension Liability (Asset) and Related Ratios 62
Schedule of Employer's Pension Contributions - Monticello Fire Department Relief Association 62
Schedule of Changes in the City's Total OPEB Liability and Related Ratios 63
Schedule of Revenues, Expenditures and Changes in Fund Balance - Budget and Actual - General Fund 64
Schedule of Revenues, Expenditures and Changes in Fund Balance - Budget and Actual - Community
Center Fund 65
Notes to the Required Supplementry Information 66
Combining and Individual Fund Financial Statements and Schedules
Nonmajor Governmental Funds
Combining Balance Sheet 71
Combining Statement of Revenues, Expenditures and Changes in Fund Balance 72
Internal Service Funds
Combining Statement of Net Position 73
Combining Statement of Revenues, Expenses and Changes in Net Position 74
Combining Statement of Cash Flows 75
Other Supplementry Schedules
Schedule of Revenues (Sources) and Expenditures (Uses) - General Fund 77
Schedule of Revenues, Expenditures and Changes in Fund Balance - Budget and Actual - Small Cities 79
Development Program
Schedule of Revenues, Expenditures and Changes in Fund Balance - Budget and Actual - Cemetery Fund 80
Schedule of Assets, Liabilities, Deferred Inflows of Resources and Fund Balances - Debt Service Activities 81
Schedule of Revenues, Expenditures and Changes in Fund Balance - Debt Service Activities 82
Schedule of Assets, Liabilities, Deferred Inflows of Resources and Fund Balances - Discretely Presented
Component Unit - Economic Development Authority 84
Schedule of Revenues, Expenditures and Changes in Fund Balance - Discretely Presented Component
Unit - Economic Development Authority 86
(continued)
I
CITY OF MONTICELLO
Financial Statements
Table of Contents
December 31, 2023 (continued)
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 Sewer 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, 2023 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 Nine Fiscal Years 114
II
INTRODUCTORY SECTION
May 20, 2024
To the Honorable Mayor, Members of the City Council, and the Residents of the City of Monticello:
The city is pleased to present the Annual Comprehensive Financial Report (ACFR) of the City of Monticello,
Minnesota (the city) for the fiscal year ended December 31, 2023. 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.
The city’s ACFR has been audited by Abdo, 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, 2023, 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, 2023 are fairly presented in conformity with accounting principles generally
accepted in the United States of America. The independent auditor’s report is presented as the first
component of the financial section of this report.
The preparation of this ACFR is a requirement of state law. Also, the ACFR is required by 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 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 6,000 acres
and a population of 15,087. The city is home to one of Minnesota’s two nuclear power plants, both owned
by Xcel Energy, Inc. (NYSE: XEL), which is the city’s largest property taxpayer and the second largest
employer. 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 sewer 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 off
to a population of about 1,300. It was this original settlement that became the core city and continues 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
1
Letter of Transmittal CITY OF MONTICELLO
two members elected every two years. The mayor is elected for a two-year term. The mayor and members
of the city council are elected at large.
The city provides a full range of services: the construction and maintenance of streets and other
infrastructure; snow removal; park and cemetery maintenance; recreational and cultural activities; water,
sewer, 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,
human resources, information systems, 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). Amendments
and 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.
FINANCIAL PLANNING AND THE LOCAL ECONOMY
Monticello is a destination community located in the second-fastest growing county in Minnesota. The
location on Interstate 94 is a catalyst for interest from developers to build in the city. Several residential
neighborhoods and multi-family dwellings are under construction with more on the horizon. The nuclear
power plant provides the city with a relatively stable tax and employment base, although year-to-year
valuations of the nuclear plant cause tax shifts between property tax types. The economy and housing
market have also affected city revenues for building permits. The city issued 721 building permits in 2014
with a total valuation of $19,714,895. In 2023, the city issued 1,122 permits with a total valuation of
$76,068,705.
Due to the nuclear plant and local development, the city does not rely on the state as a major funding source
(LGA), so the city’s finances are relatively insulated from the state’s budget impacts. To assist external
stakeholders, the city is continuously exploring various ways to better represent its financial position. Other
initiatives include implementing a proposed future local option sales tax, obtaining increased amounts of
state and federal funding, evaluating expenses shared across departments for proper allocation, and
refining the chart of accounts with the goal of providing better information to decision makers. The city’s
bond rating was increased in October of 2023 to Aa3 by Moody’s.
MAJOR INITIATIVES
The city has several major ongoing initiatives in 2023. The first ongoing initiative is the revitalization of its
historic downtown. The downtown is the oldest part of the city, which requires consistent redesign and
investment. The city’s goal is to make the downtown area a vibrant shopping and resident destination once
again, which is driven by the Embracing Downtown Monticello initiative and 2017 Downtown Small Area
Plan (SAP). Several properties were acquired by the Monticello Economic Development Authority (EDA),
which were platted and sold to a developer in 2022. The Downtown Pedestrian and Roadway Improvements
project began in 2023 with completion planned in 2024. The challenge moving forward will be the continued
implementation of the SAP to create additional development opportunities within the downtown area for
new and existing businesses. The city’s Monti:2040 Comprehensive Plan, completed in 2020, includes
downtown revitalization as a priority focus through 2040.
The second major focus of the City Council is the construction of a new Water Treatment Plant. Not to be
confused with the existing Wastewater Treatment Plant, the Water Treatment Plant will serve as the central
location for the treatment of the city’s water supply. During a routine test of the city’s water supply, higher
than recommended levels of manganese were discovered, and the city would use the new treatment plant
to treat the water supply accordingly.
The construction of a new Public Works Facility is the third major focus of the City Council. The current
location was built in the 1970s and would need significant maintenance to continue supporting operations.
Land was purchased in 2021 for the new site, an architect was hired in 2022, and a construction manager
was hired in 2023. Construction is budgeted to begin in 2024, however, the city continues to refine funding
sources, which may push back the project’s timeline.
The fourth ongoing initiative is the joint operation with Wright County of Bertram Chain of Lakes properties.
The 1,258-acre site includes four pristine lakes and woodlands, which will become a regional park. Wright
2
Letter of Transmittal CITY OF MONTICELLO
County and the city obtained matching grants from the state to purchase much of the acreage in the park.
Construction of phases I and II of park improvements were completed in 2021 and 2023.
Finally, the City Council identified the Pointes at Cedar development area, a 100-acre site in the middle of
the city, as a prime area for growth, which will aid in lessening the impacts of a future Xcel plant
decommissioning. While Xcel’s preferred scenario is to extend the licensure of the Monticello plant past its
current expiration in 2030, re-licensure is an extensive process, and the city realizes that planning for the
future needs to happen today.
In 2023, the city was given authority by the Minnesota Legislature to ask the voters to implement a half-
cent sales tax at the general election in 2024. This sales tax would fund the Bertram Chain of Lakes and/or
the Pointes at Cedar projects.
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
and accurate 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 city management and finance department.
Management assumes 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.
BUDGETING CONTROLS
The city maintains budgetary controls to assure compliance with legal provisions embodied in the annual
appropriated budget approved by the city council. The 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 ten-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 ACFR for the fiscal year
ended December 31, 2022. This was the thirteenth 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 ACFR. 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 ACFR 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 2023 ACFR 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, Abdo. 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
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 Annual
Comprehensive Financial Report for the fiscal year ended December 31, 2022. 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 Annual Comprehensive 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 Annual Comprehensive
Financial Report
For the Fiscal Year Ended
December 31, 2022
Executive Director
4
Residents
City Council
City Administrator
Human Resources Manager
Communications & Marketing Specialist
Finance Director
Finance
& Audit
Deputy Registrar
Liquor Operations
Information Technology
Community Development Director
Economic Development
Building Inspections
Consulting Planner
CIty Engineer
Project Engineer
Construction Inspections
Consulting Engineer
Public Works Director
Streets Department
Water & Sewer Department
Refuse Collection
Parks, Art & Recreation Director
Community Center
Parks Department
MontiArts
City Clerk
Elections
Reception
Fire Chief
Fire Department
Contracted Services
City Attorney
Sheriffs Department
County Assessor
FiberNet Operation
Animal Control
Commissions
& Boards
5
Position Name
MAYOR & CITY COUNCIL
Mayor ...................................................................................... Lloyd Hilgart 12/31/2024
Council ....................................................................................... Lee Martie 12/31/2024
Council .................................................................................... Sam Murdoff 12/31/2024
Council .............................................................................. Charlotte Gabler 12/31/2026
Council ....................................................................................... Tracy Hinz 12/31/2026
CITY STAFF
City Administrator ........................................................................................ Rachel Leonard
Public Works Director/City Engineer ............................................................... Matt Leonard
Finance Director ....................................................................................Sarah Rathlisberger
Community Development Director .......................................................... Angela Schumann
Parks, Arts & Recreation Director ..................................................................... Tom Pawelk
City Clerk ................................................................................................. Jennifer Schreiber
Finance Manager ................................................................................................ Liz Lindrud
Human Resource Manager ............................................................................... Tracy Ergen
Communications & Marketing Specialist .......................................................... Haley Foster
Street Superintendent...................................................................................... Mike Haaland
Utilities Superintendent......................................................................................... Mat Stang
Facilities Maintenance Manager ...................................................................... Jerry Hanson
Parks Superintendent ................................................................................. Josh Berthiaume
Community Center Operations Manager ............................................................. Sara Cahill
Community Center Membership Coordinator ................................................ Tricia Handorff
Deputy Registrar Manager ......................................................................... Carolyn Granger
Liquor Store Manager ................................................................................. Randall Johnsen
Information Technology Technician .................................................................. Trevor Mack
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
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Term Expires
FINANCIAL SECTION
INDEPENDENT AUDITOR’S REPORT
Honorable Mayor and City Council
City of Monticello, Minnesota
Opinions
We have audited the accompanying financial statements of the governmental activities, the business -type activities, the
discretely presented component unit, 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, 2023, and the related notes to the financial
statements, which collectively comprise the City’s basic financial statements as listed in the table of contents.
In our opinion, the financial statements referred to above present fairly, in all material respects, the respective financial
position of the governmental activities, the business-type activities, the discretely presented component unit, each major
fund and the aggregate remaining fund information of the City as of December 31, 2023, and the respective changes in
financial position and, where applicable, cash flows thereof for the year then ended in accordance with accounting
principles generally accepted in the United States of America.
Basis for Opinions
We conducted our audit in accordance with auditing standards generally accepted in the United States of America and the
standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of
the United States. Our responsibilities under those standards are further described in the Auditor’s Responsibilities for the
Audit of the Financial Statements section of our report. We are required to be independent of the City to meet our other
ethical responsibilities, in accordance with the relevant ethical requirements relating to our audit. We believe that the audit
evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinions.
Responsibilities of Management for the Financial Statements
Management is responsible for the preparation and fair presentation of these financial statements in accordance with
accounting principles generally accepted in the United States of America; this includes the design, implementation, and
maintenance of internal control relevant to the preparation and fair presentation of financial statements that are free from
material misstatement, whether due to fraud or error.
In preparing the financial statements, management is required to evaluate whether there are conditions or events,
considered in the aggregate, that raise substantial doubt about the City’s ability to continue as a going concern for twelve
months beyond the financial statement date, including any currently known information that may raise substantial doubt
shortly thereafter.
Auditor’s Responsibilities for the Audit of the Financial Statements
Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from
material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinions.
Reasonable assurance is a high level of assurance but is not absolute assurance and therefore is not a guarantee that an
audit conducted in accordance with generally accepted auditing standards and Government Auditing Standards will
always detect a material misstatement when it exists. The risk of not detecting a material misstatement resulting from
fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions,
misrepresentations, or the override of internal control. Misstatements are considered material if there is a substantial
likelihood that, individually or in the aggregate, they would influence the judgment made by a reasonable user based on
the financial statements.
7
In performing an audit in accordance with generally accepted auditing standards and Government Auditing Standards, we:
• Exercise professional judgment and maintain professional skepticism throughout the audit.
• Identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error,
and design and perform audit procedures responsive to those risks. Such procedures include examining, on a test
basis, evidence regarding the amounts and disclosures in the financial statements.
• Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are
appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the
City’s internal control. Accordingly, no such opinion is expressed.
• Evaluate the appropriateness of accounting policies used and the reasonableness of significant accounting
estimates made by management, as well as evaluate the overall presentation of the financial statements.
• Conclude whether, in our judgment, there are conditions or events, considered in the aggregate, that raise
substantial doubt about the City’s ability to continue as a going concern for a reasonable period of time.
We are required to communicate with those charged with governance regarding, among other matters, the planned scope
and timing of the audit, significant audit findings, and certain internal control-related matters that we identified during the
audit.
Required Supplementary Information
Accounting principles generally accepted in the United States of America require that the Management’s Discussion and
Analysis starting on page 11 and the required supplementary information (RSI), as listed in the table of contents, starting
on page 59 be presented to supplement the basic financial statements. Such information is the responsibility of
management and, although not a part of the basic financial statements, is required by the Governmental Accounting
Standards Board who considers it to be an essential part of financial reporting for placing the basic financial statements
in an appropriate operational, economic, or historical context. We have applied certain limited procedures to the 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.
Supplementary 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 combining and individual fund financial statements and schedules are presented for
purposes of additional analysis and are not a required part of the basic financial statements. Such information is the
responsibility of management and was derived from and relates directly to the underlying accounting and other records
used to prepare the basic financial statements. The information has been subjected to the auditing procedures applied in
the audit of the basic financial statements and certain additional procedures, including comparing and reconciling such
information directly to the underlying accounting and other records used to prepare the basic financial statements or to
the basic financial statements themselves, and other additional procedures in accordance with auditing standards
generally accepted in the United States of America. In our opinion, 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.
8
Other Information
Management is responsible for the other information included in the annual report. The other information comprises the
introductory and statistical sections but does not include the basic financial statements and our auditor’s report thereon.
Our opinions on the basic financial statements do not cover the other information, and we do not express an opinion or any
form of assurance thereon.
In connection with our audit of the basic financial statements, our responsibility is to read the other information and consider
whether a material inconsistency exists between the other information and the basic financial statements, or the other
information otherwise appears to be materially misstated. If, based on the work performed, we conclude that an uncorrected
material misstatement of the other information exists, we are required to describe it in our report.
Other Reporting Required by Government Auditing Standards
In accordance with Government Auditing Standards, we have also issued our report dated May 20, 2024, on our
consideration of the City’s internal control over financial reporting and on our tests of its compliance with certain
provisions of laws, regulations, contracts, and grant agreements and other matters. The purpose of that report is solely to
describe the scope of our testing of internal control over financial reporting and compliance and the results of that testing ,
and not to provide an opinion on the effectiveness of the City’s internal control over financial reporting or on compliance.
That report is an integral part of an audit performed in accordance with Government Auditing Standards in considering the
City’s internal control over financial reporting and compliance.
Abdo
Minneapolis, Minnesota
May 20, 2024
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10
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, 2023. 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 starting on page 1 of this report.
Financial Highlights
•The assets and deferred outflows of resources of the city exceeded its liabilities and deferred inflows of
resources at year-end by $157,458,666 (net position). Of this amount, $52,070,490 (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 $22,813,966, a decrease of $103,552, or 0.5%. Nonspendable, restricted, and assigned uses
of fund balance totaled $15,397,312, leaving an unassigned fund balance of $7,416,654 which is $487,388,
or 7%, higher than the 2022 ending unassigned balance.
•At the end of the current fiscal year, unassigned fund balance for the General Fund was $7,416,654, or
65.5%, of total General Fund expenditures for 2023. It is the city’s policy to have an ending General Fund
balance at 60-75% of the following year’s expenditure budget, which provides a reserve for cash flow during
the first six months of each subsequent year until property tax receipts are distributed by the county to the
local levels of government. Additionally, this reserve threshold provides temporary financing for unforeseen
emergencies.
•In 2023, government-wide capital assets increased by $7,502,123. Governmental activities included the
downtown roadway and pedestrian project, as well as two Safe Routes to Schools improvement projects.
Other projects include improvements to the Betram Chain of Lakes Regional Athletic Park and the flashing
yellow arrows project along with planning and design or a new public works facility and water treatment
plant. Parks, public works, and the building department purchased new vehicles and equipment. Other new
additions were the replacement of the library boilers and new kitchen equipment for the Community Center.
•The city’s total long-term bonded indebtedness decreased by $2,532,000, or 11.7%, in 2023, which
consisted of principal payments paid on outstanding bonds. They city did not issue any new bonds in 2023.
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 are comprised of 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.
COMPONENTS OF
THE ANNUAL COMPREHENSIVE 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
11
Management’s Discussion and Analysis CITY OF MONTICELLO
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 like private sector businesses.
The Statement of Net Position presents information on all 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, for
example).
Both 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 the water, sewer, 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 provides redevelopment and
other economic development assistance through the administration of various programs. Financial information for
this component unit is discretely presented in the government-wide financial statements. The government-wide
financial statements can be found starting on page 19 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. These statements
focus on individual parts of the city government, reporting the city’s operations in more detail than the government-
wide statements. All 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-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
Balance for the General Fund, Community Center (special revenue) Fund, Debt Service Fund, and Capital Projects
Fund, all of which are 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 or schedules 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 Community Center Fund
to demonstrate compliance with the adopted budgets. The governmental fund financial statements can be found
starting on page 22 of this report.
Proprietary Funds – The city maintains two distinct 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, sewer, and stormwater services, municipal
liquor store sales, fiber optics network, and deputy registrar. 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 acquisitions, information technology (IT) services, and facilities
maintenance. 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.
12
Management’s Discussion and Analysis CITY OF MONTICELLO
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 starting on page 26 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 starting on page 32 of this report.
Required Supplementary Information. In addition to the basic financial statements and accompanying notes, this
report also presents certain required supplementary information concerning the City of Monticello’s share of net
pension liabilities (assets) for defined benefit plans, schedules of contributions, and progress in funding its obligation
to provide pension and other postemployment benefits to its employees. Required supplementary information can be
found starting on page 61 of this report.
Other Information –Combining and individual fund financial statements and schedules for nonmajor governmental
funds, internal service funds, and other supplementary schedules are presented immediately following the required
supplemental information. Combining and individual fund statements and schedules can be found starting on page
71.
GOVERNMENT-WIDE FINANCIAL ANALYSIS
NET POSITION
By the far the largest portion of the city’s net position (64.3%) 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 (2.7%) represents resources that are subject to external restrictions on how
they can be used. The remaining unrestricted net position of $52,070,490 may be used to meet the ongoing
obligations to citizens and creditors.
The unrestricted governmental activities net position increased $1,165,676 (5.2%), and business-type activities
unrestricted net position increased $3,295,268 (13.2%). The government-wide total unrestricted net position
increased $4,460,944 (9.4%) reflecting revenues exceeding conservative budgeted estimates and expenditures
below liberal estimates.
The $8,848,718 (12.3%) increase in governmental activities capital assets is related to several ongoing projects, the
largest of which is the downtown roadway and pedestrian project. Business-type capital assets decreased $1,346,595
(3.2%) due to depreciation more than additions. Total net investment in capital assets, which is capital assets less
related debt, increased because capital asset acquisitions less the amount of debt borrowed to acquire assets (none
in 2023) exceeded capital asset disposals and depreciation.
2023 2022 2023 2022 2023 2022
Current and other assets 36,698,595$ 32,226,452$ 31,215,270$ 27,571,905$ 67,913,865$ 59,798,357$
Capital assets 80,816,537 71,967,819 40,598,403 41,944,998 121,414,940 113,912,817
Total assets 117,515,132 104,194,271 71,813,673 69,516,903 189,328,805 173,711,174
Deferred outflows of resources 1,188,819 1,415,999 299,641 504,058 1,488,460 1,920,057
Long-term liabilities 19,611,320 22,682,238 3,768,739 4,549,652 23,380,059 27,231,890
Other liabilities 2,944,820 2,388,747 1,150,584 1,010,987 4,095,404 3,399,734
Total liabilities 22,556,140 25,070,985 4,919,323 5,560,639 27,475,463 30,631,624
Deferred inflows of resources 4,908,180 1,730,675 974,956 687,475 5,883,136 2,418,150
Net position
Net investment in capital assets 63,232,687 52,824,487 37,944,447 38,793,527 101,177,134 91,618,014
Restricted 4,211,042 3,353,897 - - 4,211,042 3,353,897
Unrestricted 23,795,902 22,630,226 28,274,588 24,979,320 52,070,490 47,609,546
Total net position 91,239,631$ 78,808,610$ 66,219,035$ 63,772,847$ 157,458,666$ 142,581,457$
Governmental Activities Business-Type Activities Total
13
Management’s Discussion and Analysis CITY OF MONTICELLO
CHANGE IN NET POSITION
Governmental Activities. The most significant revenue source for governmental activities is property taxes at 45.4%
of total revenues. Property taxes support the General, Community Center, Capital Project, and Debt Service funds.
Charges for services account for 19.8% of revenues, with about 23.6% of that generated by the Community Center.
Capital grants and contributions include special assessments and revenues from other sources restricted to capital
asset acquisition. Investment earnings include both interest earnings received and the change in the investment fair
values.
Governmental activities revenues increased $8,811,286 (49.0%) in the current year. Charges for services increased
$980,874 (22.6%) with increased operations at the Community Center compared to 2022. Additionally, operating
grants and aids increased $447,637 (37.5%) mostly due to one-time public safety aid allocated from the State of
Minnesota. Capital grants and contributions increased $4,397,037 (287.5%) due to contributions from other
governments toward city capital projects, including Wright County’s contribution to the downtown roadway and
pedestrian improvement project. Property taxes increased by $706,962 (6.2%) while investment earnings increased
$2,232,309 (243.7%) as the investment market stabilized.
Public works (engineering, streets, ice and snow removal, shop and garage, street lighting, etc.) expenses are the
most significant (31.3%), followed by recreation and culture (27.6%), public safety (19.3%), general government
(15.0%), sanitation (4.5%), and interest and fiscal charges (2.5%). Included in these amounts is depreciation expense,
which is 22.5% of the total expenses for governmental activities.
Governmental activities expenses increased $1,313,438 (7.9%) in the current year. The most significant changes in
program expenses were as follows:
Recreation and culture increased $1,087,924 (28.1%). The main increase to the parks expenditures was due to
the parks need study and master plan. The Monticello Community Center has increased expenses related to
increased operation expenses as usage levels continue to increase post-COVID. Other factors were the
purchase of new spin bikes, outsourcing the facility cleaning and other repairs made to the pool area.
Public Safety increased $293,079 (9.2%) due to an increase in the law enforcement contract with the Wright
County Sheriffs Office.
General government expenses decreased $103,888 (3.7%) due to a decrease in expenses from 2022 related to
a Community Energy Transitions (CET) grant, which provided funds for studies related to the future
decommissioning of the Xcel Nuclear Generating Plant.
2023 2022 2023 2022 2023 2022
Revenues
Program revenues
Charges for services 5,311,706$ 4,330,832$ 15,664,859$ 15,489,232$ 20,976,565$ 19,820,064$
Operating grants and contributions 1,640,385 1,192,748 474,925 297,608 2,115,310 1,490,356
Capital grants and contributions 5,926,525 1,529,488 2,915,922 1,522,921 8,842,447 3,052,409
General revenues
Property taxes 12,163,726 11,456,764 - - 12,163,726 11,456,764
Franchise taxes 400,591 388,074 20,587 53,000 421,178 441,074
Unrestricted investment earnings 1,316,451 (915,858) 1,237,097 (817,755) 2,553,548 (1,733,613)
Gain on sale of assets 33,950 - - - 33,950 -
Total revenues 26,793,334 17,982,048 20,313,390 16,545,006 47,106,724 34,527,054
Expenses
General government 2,694,603 2,798,491 - - 2,694,603 2,798,491
Public safety 3,461,914 3,168,835 - - 3,461,914 3,168,835
Public works 5,592,411 5,556,590 - - 5,592,411 5,556,590
Sanitation 817,199 784,052 - - 817,199 784,052
Recreation and culture 4,962,239 3,874,315 - - 4,962,239 3,874,315
Interest and fiscal charges 448,258 480,903 - - 448,258 480,903
Water - - 1,449,050 1,348,348 1,449,050 1,348,348
Sewer - - 3,215,564 3,232,878 3,215,564 3,232,878
Stormwater - - 650,470 797,995 650,470 797,995
Liquor - - 6,315,729 6,320,611 6,315,729 6,320,611
Fiber optics - - 1,934,753 2,005,196 1,934,753 2,005,196
Deputy registrar - - 687,325 785,822 687,325 785,822
Total expenses 17,976,624 16,663,186 14,252,891 14,490,850 32,229,515 31,154,036
Increase in net position before transfers 8,816,710 1,318,862 6,060,499 2,054,156 14,877,209 3,373,018
Transfers 3,614,311 - (3,614,311) - - -
Change in net position 12,431,021 1,318,862 2,446,188 2,054,156 14,877,209 3,373,018
Net position, January 1 78,808,610 77,489,748 63,772,847 61,718,691 142,581,457 139,208,439
Net position, December 31 91,239,631$ 78,808,610$ 66,219,035$ 63,772,847$ 157,458,666$ 142,581,457$
Governmental Activities Business-Type Activities Total
14
Management’s Discussion and Analysis CITY OF MONTICELLO
Business-type Activities. Business-type activities increased the city’s net position by $2,446,188, which is
$392,032 more than the prior fiscal year’s increase in business-type net position. The change is attributable to
positive investment earnings as the market stabilized. There was also an increase in capital contributions from
developers for water/sewer access and trunk charges.
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. 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.
On December 31, 2023, the city’s governmental funds reported total ending fund balances of $22,813,966, a
decrease of $103,552 (0.5%) when compared with the prior year. Approximately 11.5% or $2,612,822 of the total
ending fund balances constituted restricted fund balances, which are considered unavailable for appropriation for
general operations. The $152,542 nonspendable fund balance accounted for 0.7% 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 $8,178,673, increasing $1,135,877 (16.1%)
from the prior year. General fund revenues were $2,094,414 (18.8%) more than the prior fiscal year and expenditures
increased by $778,201 (7.4%).
General government expenditures increased $11,677 (0.4%) due to investment in software upgrades. Public safety
expenditures increased $274,096 (9.2%) due to an increase in the law enforcement contract. Public works
expenditures increased $200,774 (8.4%) due to a crack seal project and street maintenance materials. There was
also an increase in new equipment, however there was an offsetting decrease in repair and maintenance
expenditures. Recreation and culture expenditures increased by $258,507 (15.3%) due to the parks needs and
assessment and master plan and increased cost of supplies.
The fund balance in the Community Center Fund increased $94,484 (21.0%) to $543,903 due to an increase in
memberships and day passes. Charges for services increased $247,424 (24.6%) to $1,255,214 in 2023.
Expenditures increased $285,005 (15.3%) to $2,143,333 as usage increased and staffing levels were increased.
Repairs were also made to the facility and older equipment was replaced.
15
Management’s Discussion and Analysis CITY OF MONTICELLO
The fund balance in the Debt Service Fund decreased $246,369 (25.3%) to $727,936. This fund balance decrease
reflects the prior year accumulation of resources to make scheduled bond payments. Special assessment revenue
decreased $17,081 (5.4%) to $300,188 as prepayments were made and no large projects assessed in 2023. 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 decreased $1,226,222 (11.3%) to
$9,642,528.
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 increased $108,685 (8.1%). Utility employee personal service costs are divided
between the Water Fund and Sewer Fund based on activity. The Water Fund operating revenues increased $327,927
(18.5%) with an increase in rates and adjustments to the usage in each rate tier to help promote water conservation.
The fund’s net position increased $2,045,507 (13.6%) to $17,088,531 due to commercial development trunk and
access fees received. Depreciation expense for the fund totaled $493,027.
Sewer Fund expenses decreased $18,136 (0.6%) and operating revenues increased $88,272 (3.0%) with an increase
in rates. The fund’s net position increased $2,319,785 (9.4%) to $27,118,302 due to commercial development trunk
and access fees received. Depreciation expense for the fund totaled $1,196,048.
Stormwater operating expenses decreased $147,525 (18.5%). Stormwater operating revenues increased $93,518
(17.7%), due to an increase in rates along with an increased number of accounts in 2023. The fund’s net position
increased $364,628 (5.7%) to $6,717,643. Depreciation expense for the fund totaled $446,768.
The Liquor Fund’s net position decreased $1,444,664 (53.3%) to $1,263,435 comprising of roughly $800,000 in
income offset by $2,250,000 in transfers to the capital projects, street lighting improvements and the park and pathway
funds. Liquor and related product sales decreased $125,831 (1.8%) to $7,042,543. Profits from the liquor store are
held until transferred out for another city use. Gross profit decreased $43,778 (2.3%) for a total gross profit of
$1,868,567. Operating expenses increased $87,177 (8.2%) to $1,145,204, and depreciation expense for the fund
totaled $10,655.
The Fiber Optics Fund’s net position increased $90,940 (0.7%) to $12,567,528. The fund’s 2023 charges for services
decreased $50,093 (2.5%) to $1,928,497. Excluding depreciation, the operating income was $388,279 in 2023.
Depreciation expense for the fund totaled $388,543. The city contracted for FiberNet operations management in July
2016 and renewed the contract for an additional five-year term in 2021.
The Deputy Registrar Fund (DMV) net position decreased $940,468 (39.9%) to $1,415,585. The decrease is related
to a transfer from the DMV fund to the Capital Projects fund. Charges for services increased $62,536 (7.0%) to
$951,987, and operating expenses decreased $86,437 (11.1%) to $690,799. Depreciation for the fund totaled
$33,979.
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 $13,215,293 and exceeded the budget by $1,735,293 (15.1%). Intergovernmental, licenses and permits, and
investment earnings were $771,094 (138.4%), $446,901 (92.3%), and $401,990 (1,252.5%) higher than budget,
respectively. Intergovernmental revenues include grants from other governmental entities, licenses and permits
include building permits fees, and investments include the interest earned and adjustments to market value of
investments. These revenues can be difficult to predict, and are, therefore, budgeted conservatively.
General Fund expenditures totaled $11,329,416 and were $144,584 (1.3%) under the budget. While spending in
some budget units exceeded appropriations, conservative spending in other units and revenues more than budget
allowed for an overall increase in fund balance.
The General government function exceeded budget due to unbudgeted planning and zoning escrow activity that is
offset by grant funding and charges for services revenues. The recreation and culture function exceeded budget due
to the parks needs assessments and master plan exceeding budgeted expectations. Within the expenditure functions,
eleven of twenty-eight reporting units exceeded budget.
16
Management’s Discussion and Analysis CITY OF MONTICELLO
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, 2023 totaled $121,414,940 (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: the purchases of land for a future park expansion at East Bridge
Park, purchase of land downtown for future parking or redevelopment, the completion of the 2022 street project, and
equipment purchases. Business-type capital assets include new coolers for the liquor store and new HVAC for the
wastewater treatment plant. The total increase from the prior fiscal year was 6.6%; governmental activities increased
12.3% and business-type activities decreased 3.2%.
Additional information on the city’s capital assets can be found in the notes to the financial statements starting on
page 43.
DEBT ADMINISTRATION
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 $19,193,000 on December
31, 2023, which is a decrease of $2,532,000 from the prior year. Total long-term debt decreased with regularly
scheduled payments. No new debt was issued in 2023.
Additional information on the city’s long-term liabilities can be found in the notes to the financial statements starting
on page 44 of this report.
2023 2022 2023 2022 2023 2022
Land 17,359,078$ 16,903,464$ 867,010$ 804,010$ 18,226,088$ 17,707,474$
Construction in progress 12,448,518 1,696,704 1,198,773 921,047 13,647,291 2,617,751
Buildings and systems 106,414,327 105,739,455 107,306,862 106,413,498 213,721,189 212,152,953
Machinery and equipment 10,501,721 10,055,983 3,651,708 3,570,582 14,153,429 13,626,565
Less: Accumulated depreciation (65,907,107) (62,427,787) (72,425,950) (69,764,139) (138,333,057) (132,191,926)
Net total 80,816,537$ 71,967,819$ 40,598,403$ 41,944,998$ 121,414,940$ 113,912,817$
Governmental Activities Business-Type Activities Total
2023 2022 2023 2022 2023 2022
General obligation bonds 4,905,000$ 5,435,000$ 1,120,000$ 1,325,000$ 6,025,000$ 6,760,000$
Special assessment bonds 5,680,000 6,780,000 - - 5,680,000 6,780,000
Tax abatement bonds 6,110,000 6,700,000 - - 6,110,000 6,700,000
Public Facilities Authority revenue note - - 1,378,000 1,485,000 1,378,000 1,485,000
Total 16,695,000$ 18,915,000$ 2,498,000$ 2,810,000$ 19,193,000$ 21,725,000$
Activities Activities Total
Governmental Business-Type
17
Management’s Discussion and Analysis CITY OF MONTICELLO
ECONOMIC FACTORS AND NEXT YEAR’S BUDGETS AND RATES
The unemployment rate for the Wright County, Minnesota area for December 31, 2023 was 2.8%, which is higher
than the state average (2.6%) and lower than the national average (3.5%).
New commercial and residential development continued to grow at a sustainable pace in 2023 and have not
indicated a significant downward trend yet in 2024.
The occupancy rate of the city’s business district has remained constant over the last few years and new
commercial construction is continuing to grow.
The prospects for continued residential and large commercial growth in 2024 look promising.
Inflationary trends in the region have compared favorably to national indices in the last few years; however, the
nationwide effects of inflation in housing prices are found in Monticello as well.
The property valuation of the city’s largest taxpayer, the Xcel Energy Nuclear Generating Plant, is assessed by
the State of Minnesota and can experience notable volatility. The city continues to advocate for host communities
at the state level through the Coalition of Utility Cities to minimize impacts on its residents and businesses.
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.
18
BASIC STATEMENTS
CITY OF MONTICELLO
Statement of Net Position
December 31, 2023
Component Unit
Economic
Governmental Business-type Development
Activities Activities Total Authority
ASSETS
Cash and investments 28,302,976$ 28,168,392$ 56,471,368$ 4,222,766$
Receivables
Unremitted taxes 23,588 - 23,588 753
Delinquent taxes 97,554 - 97,554 11,073
Unremitted special assessments 1,017 4,557 5,574 -
Delinquent special assessments 4,090 17,934 22,024 -
Deferred special assessments 3,818,217 725,098 4,543,315 -
Accrued interest 137,004 - 137,004 -
Accounts 347,408 928,683 1,276,091 9,126
Due from other governmental units 1,450,298 139,873 1,590,171 -
Leases 1,397,903 630,789 2,028,692 -
Internal balances (48,011) 48,011 - -
Inventory - 480,484 480,484 -
Prepaid items 218,482 71,449 289,931 5,033
Notes receivable 110,487 - 110,487 319,490
Land held for resale 837,582 - 837,582 2,744,929
Capital assets
Nondepreciable 29,807,596 2,065,783 31,873,379 -
Depreciable, net 51,008,941 38,532,620 89,541,561 -
TOTAL ASSETS 117,515,132 71,813,673 189,328,805 7,313,170
DEFERRED OUTFLOWS OF RESOURCES
Deferred other post-employment benefits resources 7,140 3,592 10,732 193
Deferred pension resources 1,181,679 296,049 1,477,728 22,438
TOTAL DEFERRED OUTFLOWS OF RESOURCES 1,188,819 299,641 1,488,460 22,631
LIABILITIES
Accounts and contracts payable 1,463,065 827,126 2,290,191 143,806
Accrued interest payable 16,438 8,358 24,796 -
Other accrued liabilities 315,927 18,703 334,630 -
Due to other governmental units 33,229 296,397 329,626 159
Unearned revenue 36,358 - 36,358 -
Escrow deposits 1,079,803 - 1,079,803 5,492
Noncurrent liabilities
Due within one year
Bonds, notes, leases, claims, compensated absences 2,566,220 413,060 2,979,280 13,387
Total OPEB liability 5,063 2,455 7,518 106
Due in more than one year
Net pension liability - PERA 2,310,839 1,121,462 3,432,301 84,996
Net pension liability - FRA 180,758 - 180,758 -
Total OPEB liability 84,973 41,200 126,173 1,775
Bonds, notes, leases, claims, compensated absences 14,463,467 2,190,562 16,654,029 1,488
TOTAL LIABILITIES 22,556,140 4,919,323 27,475,463 251,209
DEFERRED INFLOWS OF RESOURCES
Deferred other post-employment benefits resources 57,661 26,602 84,263 558
Deferred pension resources 875,720 337,334 1,213,054 25,567
Deferred MSA state aid 2,597,257 - 2,597,257 -
Deferred lease resources 1,377,542 611,020 1,988,562 -
TOTAL DEFERRED INFLOWS OF RESOURCES 4,908,180 974,956 5,883,136 26,125
NET POSITION
Net investment in capital assets 63,232,687 37,944,447 101,177,134 -
Restricted for
Debt service 2,322,454 - 2,322,454 -
Economic development 939,252 - 939,252 1,311,184
Cemetery operations 147,756 - 147,756 -
Park improvements 161,848 - 161,848 -
Public safety 639,732 - 639,732 -
Tax increment - - - 981,493
Unrestricted 23,795,902 28,274,588 52,070,490 4,765,790
TOTAL NET POSITION 91,239,631$ 66,219,035$ 157,458,666$ 7,058,467$
Primary Government
The notes to the financial statements are an integral part of this statement.19
Statement of Activities
For the Year Ended December 31, 2023
Operating Capital
Charges for Grants and Grants and
Expenses Services Contributions Contributions
Governmental activities
General government 2,694,603$ 894,194$ 19,289$ -$
Public safety 3,461,914 1,197,068 916,008 -
Public works 5,592,411 153,584 231,573 5,926,525
Sanitation 817,199 861,178 18,119 -
Recreation and culture 4,962,239 2,197,615 455,396 -
Economic development - 8,067 - -
Interest and fiscal charges 448,258 - - -
Total governmental activities 17,976,624 5,311,706 1,640,385 5,926,525
Business-type activities
Water 1,449,050 2,097,451 101,700 911,953
Sewer 3,215,564 3,014,189 203,400 1,769,459
Stormwater 650,470 622,664 60,750 234,510
Liquor 6,315,729 7,043,302 - -
Fiber optics 1,934,753 1,935,217 - -
Deputy registrar 687,325 952,036 109,075 -
Total business-type activities 14,252,891 15,664,859 474,925 2,915,922
Total primary government 32,229,515$ 20,976,565$ 2,115,310$ 8,842,447$
Component Unit
Economic Development Authority 1,254,476$ 40,917$ 344,993$ -$
General Revenues
Property taxes
Tax increments
Franchise taxes
Unrestricted grants and contributions
Unrestricted investment earnings
Gain on sale of capital assets
Transfers
Operating
Capital
Total general revenues
Change in Net Position
Net Position, January 1
Net Position, December 31
Program Revenues
Functions/Programs
The notes to the financial statements are an integral part of this statement.20
CITY OF MONTICELLO
Component Unit
Economic
Governmental Business-type Development
Activities Activities Total Authority
(1,781,120)$ -$ (1,781,120)$ -$
(1,348,838) - (1,348,838) -
719,271 - 719,271 -
62,098 - 62,098 -
(2,309,228) - (2,309,228) -
8,067 - 8,067 -
(448,258) - (448,258) -
(5,098,008) - (5,098,008) -
- 1,662,054 1,662,054 -
- 1,771,484 1,771,484 -
- 267,454 267,454 -
- 727,573 727,573 -
- 464 464 -
- 373,786 373,786 -
- 4,802,815 4,802,815 -
(5,098,008) 4,802,815 (295,193) -
- - - (868,566)
12,163,726 - 12,163,726 408,471
- - - 550,598
400,591 20,587 421,178 -
- - - 9
1,316,451 1,237,097 2,553,548 177,223
33,950 - 33,950 -
4,000,000 (4,000,000) - -
(385,689) 385,689 -
17,529,029 (2,356,627) 15,172,402 1,136,301
12,431,021 2,446,188 14,877,209 267,735
78,808,610 63,772,847 142,581,457 6,790,732
91,239,631$ 66,219,035$ 157,458,666$ 7,058,467$
Net (Expense) Revenue and Changes in Net Position
The notes to the financial statements are an integral part of this statement.21
CITY OF MONTICELLO
Balance Sheet
Governmental Funds
401
101 226 Linked 402
400 Total Total
Community Debt Capital Nonmajor Governmental
General Center Service Projects Funds Funds
ASSETS
Cash and investments 9,464,666$ 508,676$ 729,928$ 12,280,612$ 3,629,053$ 26,612,935$
Receivables
Unremitted taxes 23,588 - - - - 23,588
Delinquent taxes 97,554 - - - - 97,554
Unremitted special assessments - - 1,008 9 - 1,017
Delinquent special assessments - - 3,652 438 - 4,090
Deferred special assessments - - 1,607,304 2,207,211 3,702 3,818,217
Accrued interest 137,004 - - - - 137,004
Accounts 250,493 48,187 - 1,995 46,353 347,028
Due from other governmental units 67,858 - - 1,382,440 - 1,450,298
Leases 1,397,903 - - - - 1,397,903
Prepaid items 122,287 29,800 - - 455 152,542
Notes receivable - - - - 110,487 110,487
Land held for resale - - - 837,582 - 837,582
TOTAL ASSETS 11,561,353$ 586,663$ 2,341,892$ 16,710,287$ 3,790,050$ 34,990,245$
LIABILITIES
Accounts and contracts payable 452,675$ 9,503$ 3,000$ 875,466$ 65,422$ 1,406,066$
Other accrued liabilities 293,373 22,554 - - - 315,927
Due to other governmental units 15,375 10,703 - 4,946 - 31,024
Unearned revenue 36,358 - - - - 36,358
Escrow deposits 1,079,803 - - - - 1,079,803
Total liabilities 1,877,584 42,760 3,000 880,412 65,422 2,869,178
DEFERRED INFLOWS OF RESOURCES
Unavailable revenue - property taxes 97,554 - - - - 97,554
Unavailable revenue - special assessments - - 1,610,956 2,207,650 3,702 3,822,308
Unavailable revenue - state aid and grants 30,000 - - 3,979,697 - 4,009,697
Deferred lease resources 1,377,542 - - - - 1,377,542
Total deferred inflows of resources 1,505,096 - 1,610,956 6,187,347 3,702 9,307,101
FUND BALANCES
Nonspendable 122,287 29,800 - - 455 152,542
Restricted 639,732 - 727,936 - 1,245,154 2,612,822
Assigned - 514,103 - 9,642,528 2,475,317 12,631,948
Unassigned 7,416,654 - - - - 7,416,654
Total fund balance 8,178,673 543,903 727,936 9,642,528 3,720,926 22,813,966
TOTAL LIABILITIES, DEFERRED INFLOWS
OF RESOURCES, AND FUND BALANCES 11,561,353$ 586,663$ 2,341,892$ 16,710,287$ 3,790,050$ 34,990,245$
December 31, 2023
The notes to the financial statements are an integral part of this statement.22
CITY OF MONTICELLO
Reconciliation of the Governmental Funds Balance Sheet
to the Statement of Net Position
December 31, 2023
Amounts reported for governmental activities in the Statement of Net Position are different because:
Total fund balances - governmental funds 22,813,966$
Capital assets used in governmental activities are not financial resources and, therefore, are not reported in
the funds.
Land 17,359,078$
Construction in progress 12,448,518
Buildings and systems 106,414,327
Machinery and equipment 5,060,083
Accumulated depreciation (63,974,222) 77,307,784
Governmental funds do not report long-term amounts related to other post-employment benefits and pensions.
Deferred outflows of resources - OPEB 7,140$
Deferred outflows of resources - pensions 1,181,679
Deferred inflows of resources - OPEB (57,661)
Deferred inflows of resources - pensions (875,720) 255,438
Long-term liabilities 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 (16,635,000)$
Other post-employment benefits liability (90,036)
Net pension liability - PERA (2,310,839)
Net pension liability - FRA (180,758) (19,216,633)
Internal service funds are used by management to charge the costs of facilities maintenance, 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 4,811,147$
Less internal services net position allocated to business-type activities (48,011) 4,763,136
Some of the city's property taxes, special assessments, and state aids and grants 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. 5,332,302
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. (16,362)
Net position of governmental activities 91,239,631$
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, 2023
101 226 Linked 401 Linked
400 Total Total
Community Debt Capital Nonmajor Governmental
General Center Service Projects Funds Funds
Revenues
Property taxes 8,056,454$ 515,000$ 1,999,581$ 1,548,989$ -$ 12,120,024$
Franchise taxes 243,482 - - - 157,109 400,591
Special assessments 156 - 300,188 884,472 815 1,185,631
Licenses and permits 930,901 - - - - 930,901
Intergovernmental 1,224,989 415,396 - 586,606 - 2,226,991
Charges for services 1,486,973 1,255,214 - - 93,974 2,836,161
Fines and forfeitures 52,413 - - - - 52,413
Investment earnings 434,085 17,868 60,046 541,853 180,201 1,234,053
Interest on loans - - - - 3,082 3,082
Other revenues 784,190 34,339 - 2,444,594 4,150 3,267,273
Total revenues 13,213,643 2,237,817 2,359,815 6,006,514 439,331 24,257,120
Expenditures
Current
General government 2,696,531 - - - - 2,696,531
Public safety 3,263,979 - - - - 3,263,979
Public works 2,601,329 - - 7,800 - 2,609,129
Sanitation 817,199 - - - - 817,199
Recreation and culture 1,950,378 2,115,490 - - 31,673 4,097,541
Capital outlay
Public works - - - 10,697,536 38,563 10,736,099
Recreation and culture - 27,843 - 59,700 1,480,417 1,567,960
Debt service
Principal - - 2,160,000 - - 2,160,000
Interest and fiscal charges - - 446,184 - - 446,184
Total expenditures 11,329,416 2,143,333 2,606,184 10,765,036 1,550,653 28,394,622
Excess (deficiency) of revenues over
(under) expenditures 1,884,227 94,484 (246,369) (4,758,522) (1,111,322) (4,137,502)
Other financing sources (uses)
Sale of capital assets 1,650 - - 32,300 - 33,950
Transfers in - - - 3,500,000 1,250,000 4,750,000
Transfers out (750,000) - - - - (750,000)
Total other financing sources (uses)(748,350) - - 3,532,300 1,250,000 4,033,950
Net change in fund balances 1,135,877 94,484 (246,369) (1,226,222) 138,678 (103,552)
Fund balance at beginning of year 7,042,796 449,419 974,305 10,868,750 3,582,248 22,917,518
Fund balance at end of year 8,178,673$ 543,903$ 727,936$ 9,642,528$ 3,720,926$ 22,813,966$
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, 2023
Amounts reported for governmental activities in the Statement of Activities are different because
Net change in fund balances - governmental funds (103,552)$
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 12,224,063$
Capital contributions to business-type activities (385,689)
Disposals (18,997)
Depreciation (3,586,721) 8,232,656
Repayment of long-term debt principal is an expenditure in the governmental funds, but the repayment
reduces long-term liabilities in the Statement of Net Position.2,160,000
Some expenses reported in the Statement of Activities do not require the use of current financial resources
and, therefore, are not reported as expenditures in the governmental funds.
Change in total OPEB liability and deferred outflows/inflows of resources 17,855$
Change accrued interest payable 1,973 19,828
Long-term pension activity is not reported in governmental funds
Pension revenue from state contributions 661,485
Pension expense (680,926)
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 43,702$
Special assessments 194,043
Grants receivable 1,412,440 1,650,185
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 501,805$
Subtract internal service fund activity allocated to business-type activities (10,460) 491,345
Change in net position of governmental activities 12,431,021$
The notes to the financial statements are an integral part of this statement.25
Statement of Net Position
Proprietary Funds
December 31, 2023
661 662 663
601 602 652
Water Sewer Stormwater
ASSETS
Current assets
Cash and investments 8,971,775$ 12,692,763$ 2,327,160$
Receivables
Unremitted special assessments 3,693 206 658
Delinquent special assessments 17,934 - -
Deferred special assessments 368,432 262,199 94,467
Accounts 233,195 524,212 49,155
Lease 17,174 - -
Due from other governmental units - - 60,750
Inventory - - -
Prepaid items 18,877 32,638 6,112
Total current assets 9,631,080 13,512,018 2,538,302
Noncurrent assets
Lease Receivable 613,615 - -
Capital assets
Land 208,143 516,952 136,315
Buildings and systems 21,304,719 48,707,087 19,681,581
Machinery and equipment 287,842 2,594,663 150,803
Construction in progress 595,389 595,389 7,995
Total capital assets 22,396,093 52,414,091 19,976,694
Less accumulated depreciation (14,658,855) (36,026,466) (15,677,111)
Total capital assets (net)7,737,238 16,387,625 4,299,583
Total noncurrent assets 8,350,853 16,387,625 4,299,583
TOTAL ASSETS 17,981,933 29,899,643 6,837,885
DEFERRED OUTFLOWS OF RESOURCES
Deferred other post-employment benefits resources 693 759 422
Deferred pension resources 46,211 53,168 22,249
TOTAL DEFERRED OUTFLOWS OF RESOURCES 46,904 53,927 22,671
LIABILITIES
Current liabilities
Accounts and contracts payable 35,618 30,167 26,938
Accrued interest payable - 8,358 -
Other accrued liabilities 16,350 - -
Due to other governmental units 14,495 2,376 -
Bonds and loans payable - current - 318,000 -
Compensated absences due within one year 17,213 17,213 -
Total OPEB liability 537 545 244
Total current liabilities 84,213 376,659 27,182
Noncurrent liabilities
Bonds and loans payable - net current portion - 2,180,000 -
Compensated absences payable 1,913 1,913 -
Total OPEB liability 9,010 9,143 4,094
Net pension liability 175,052 201,405 84,282
Total noncurrent liabilities 185,975 2,392,461 88,376
TOTAL LIABILITIES 270,188 2,769,120 115,558
DEFERRED INFLOWS OF RESOURCES
Deferred other post-employment benefits resources 6,443 5,566 2,003
Deferred pension resources 52,655 60,582 25,352
Deferred lease resources 611,020 - -
TOTAL DEFERRED INFLOWS OF RESOURCES 670,118 66,148 27,355
NET POSITION
Net investment in capital assets 7,709,833 13,862,220 4,279,546
Unrestricted 9,378,698 13,256,082 2,438,097
TOTAL NET POSITION 17,088,531$ 27,118,302$ 6,717,643$
Business-Type Activities – Enterprise Funds
The notes to the financial statements are an integral part of this statement.26
CITY OF MONTICELLO
Governmental
Activities -
609 656 653
Deputy Internal
Liquor Fiber Optics Registrar Totals Service Funds
1,364,083$ 1,843,793$ 968,818$ 28,168,392$ 1,690,041$
- - - 4,557 -
- - - 17,934 -
- - - 725,098 -
- 121,621 500 928,683 380
- - - 17,174 -
- - 79,123 139,873 -
480,484 - - 480,484 -
10,304 1,000 2,518 71,449 65,940
1,854,871 1,966,414 1,050,959 30,553,644 1,756,361
- - - 613,615 -
5,600 - - 867,010 -
848,997 15,639,607 1,124,870 107,306,861 -
286,263 305,726 26,412 3,651,709 5,123,481
- - - 1,198,773 318,157
1,140,860 15,945,333 1,151,282 113,024,353 5,441,638
(941,581) (4,866,364) (255,573) (72,425,950) (1,932,885)
199,279 11,078,969 895,709 40,598,403 3,508,753
199,279 11,078,969 895,709 41,212,018 3,508,753
2,054,150 13,045,383 1,946,668 71,765,662 5,265,114
1,085 - 633 3,592 -
101,898 - 72,523 296,049 -
102,983 - 73,156 299,641 -
255,457 477,855 1,091 827,126 56,999
- - - 8,358 76
2,353 - - 18,703 -
67,324 - 212,202 296,397 2,205
- - - 318,000 60,000
42,046 - 18,588 95,060 301,218
690 - 439 2,455 -
367,870 477,855 232,320 1,566,099 420,498
- - - 2,180,000 -
4,671 - 2,065 10,562 33,469
11,585 - 7,368 41,200 -
385,999 - 274,724 1,121,462 -
402,255 - 284,157 3,353,224 33,469
770,125 477,855 516,477 4,919,323 453,967
7,465 - 5,125 26,602 -
116,108 - 82,637 337,334 -
- - - 611,020 -
123,573 - 87,762 974,956 -
199,279 10,997,861 895,709 37,944,447 3,448,753
1,064,156 1,569,667 519,876 28,226,577 1,362,394
1,263,435$ 12,567,528$ 1,415,585$ 66,171,024 4,811,147$
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 48,011
Net position of business-type activities (pg. 19)66,219,035$
Business-Type Activities – Enterprise Funds
The notes to the financial statements are an integral part of this statement.27
Statement of Revenues, Expenses and Changes in Net Position
Proprietary Funds
For the Year Ended December 31, 2023
661 662 663
601 602 652
Water Sewer Stormwater
Sales and cost of sales
Net sales
Cost of sales
Gross profit
Operating revenues
Charges for services 2,015,030$ 2,961,244$ 605,240$
Other 82,421 52,945 17,424
Total operating revenues 2,097,451 3,014,189 622,664
Operating expenses
Personal services 381,293 402,942 181,220
Materials and supplies 214,276 203,865 15,198
Other services and charges 361,835 1,358,965 7,284
Depreciation 493,027 1,196,048 446,768
Total operating expenses 1,450,431 3,161,820 650,470
Operating income (loss)647,020 (147,631) (27,806)
Nonoperating revenues (expenses)
Franchise taxes - - -
Investment earnings 384,834 549,727 97,174
Intergovernmental revenues 101,700 203,400 60,750
Interest expense - (55,170) -
Total nonoperating revenues (expenses)486,534 697,957 157,924
Income before capital contributions and transfers 1,133,554 550,326 130,118
Capital contributions 911,953 1,769,459 234,510
Capital contributions from governmental activities - - -
Transfers out - - -
Change in net position 2,045,507 2,319,785 364,628
Net Position, January 1 15,043,024 24,798,517 6,353,015
Net Position, December 31 17,088,531$ 27,118,302$ 6,717,643$
Business-Type Activities – Enterprise Funds
The notes to the financial statements are an integral part of this statement.28
CITY OF MONTICELLO
Governmental
Activities -609 656 653 Linked
Deputy Internal
Liquor Fiber Optics Registrar Totals Service Funds
7,042,543$ 7,042,543$
(5,173,976) (5,173,976)
1,868,567 1,868,567
- 1,928,497$ 951,987$ 8,461,998 1,612,358$
759 6,720 49 160,318 189,112
759 1,935,217 952,036 8,622,316 1,801,470
832,330 - 541,965 2,339,750 267,205
40,046 86,547 8,004 567,936 81,530
262,173 1,460,391 106,851 3,557,499 673,753
10,655 388,543 33,979 2,569,020 458,739
1,145,204 1,935,481 690,799 9,034,205 1,481,227
724,122 (264) 261,237 1,456,678 320,243
- 20,587 - 20,587 -
81,214 70,617 53,531 1,237,097 82,398
- - 109,075 474,925 -
- - - (55,170) (4,047)
81,214 91,204 162,606 1,677,439 78,351
805,336 90,940 423,843 3,134,117 398,594
- - - 2,915,922 103,211
- - 385,689 385,689 -
(2,250,000) - (1,750,000) (4,000,000) -
(1,444,664) 90,940 (940,468) 2,435,728 501,805
2,708,099 12,476,588 2,356,053 4,309,342
1,263,435$ 12,567,528$ 1,415,585$ 4,811,147$
Adjustment to reflect the consolidation of internal service
fund related to enterprise funds 10,460
Change in net position of business-type activities (pg. 21) 2,446,188$
Business-Type Activities – Enterprise Funds
The notes to the financial statements are an integral part of this statement.29
Statement of Cash Flows
Proprietary Funds
For the Year Ended December 31, 2023
661 662/602 663/652
601 602 652
Water Sewer Stormwater
Cash flows from operating activities
Cash received from customers and users 1,992,947$ 2,991,500$ 547,675$
Cash from interfund services provided - - -
Cash paid to suppliers for goods and services (542,344) (1,536,682) (18,781)
Cash paid to employees (358,677) (412,993) (177,645)
Cash paid to other funds for services provided (30,141) (29,327) -
Net cash provided by operating activities 1,061,785 1,012,498 351,249
Cash flows from noncapital financing activities
Transfers to other funds - - -
Franchise fees - - -
Intergovernmental revenues 101,700 203,400 60,750
Net cash provided (used) by noncapital financing activities 101,700 203,400 60,750
Cash flows from capital and related financing activities
Capital contributions 934,002 1,807,037 253,350
Acquisition of capital assets (280,376) (368,545) (63,312)
Principal paid on long-term debt - (312,000) -
Interest and fiscal charges paid on long-term debt - (56,041) -
Net cash provided (used) by capital and related
financing activities 653,626 1,070,451 190,038
Cash flows from investing activities
Interest on investments 384,834 549,727 97,174
Net increase (decrease) in cash and cash equivalents 2,201,945 2,836,076 699,211
Cash and cash equivalents, January 1 6,769,830 9,856,687 1,627,949
Cash and cash equivalents, December 31 8,971,775$ 12,692,763$ 2,327,160$
Operating income (loss)647,020$ (147,631)$ (27,806)$
Adjustments to reconcile operating income (loss) to
net cash provided by operating activities
Depreciation 493,027 1,196,048 446,768
OPEB expense (1,970) (2,299) (2,880)
Other expense related to operations - - -
(Increase) decrease in assets
Special assessments receivable (57,474) 23,692 (658)
Accounts receivable (42,848) (46,381) (13,581)
Due from other governmental units - - (60,750)
Leases 16,188 - -
Inventory - - -
Prepaid items (1,877) (2,742) (2,776)
(Increase) decrease in deferred outflows
Deferred other post-employment benefits resources 131 153 65
Deferred pension resources 23,752 43,798 15,280
Increase (decrease) in liabilities
Accounts and contracts payable 4,936 (362) 6,477
Other liabilities 8,767 - -
Due to other governmental units 567 (75) -
Compensated absences (2,530) (2,530) -
Net pension liability (46,577) (105,764) (34,603)
Increase (decrease) in deferred inflows
Deferred other post-employment benefits resources 216 252 2,003
Deferred pension resources 49,594 56,339 23,710
Deferred lease resources (29,137) - -
Net cash provided by operating activities 1,061,785$ 1,012,498$ 351,249$
Schedule of noncash investing, capital and
financing activities:
Disposal of capital assets -$ -$ -$
Capital assets purchased on account 27,405$ 27,405$ 20,037$
Capital contributions -$ -$ -$
Business-Type Activities – Enterprise Funds
The notes to the financial statements are an integral part of this statement.30
CITY OF MONTICELLO
Governmental
Activities609656653
Deputy Internal
Liquor Fiber Optics Registrar Totals Service Funds
7,043,115$ 2,004,258$ 959,205$ 15,538,700$ -$
- - - - 1,801,573
(5,371,181) (1,280,934) (45,399) (8,795,322) (769,161)
(788,397) - (549,915) (2,287,627) (238,817)
(26,818) (424) (47,710) (134,420) -
856,719 722,900 316,181 4,321,331 793,595
(2,250,000) - (1,750,000) (4,000,000) -
- 20,587 - 20,587 -
- - 109,075 474,925 -
(2,250,000) 20,587 (1,640,925) (3,504,488) -
- - - 2,994,389 -
(133,591) (198,713) - (1,044,536) (971,600)
- - - (312,000) (60,000)
- - - (56,041) (4,120)
(133,591) (198,713) - 1,581,812 (1,035,720)
81,214 70,617 53,531 1,237,097 82,398
(1,445,658) 615,391 (1,271,213) 3,635,752 (159,727)
2,809,741 1,228,402 2,240,031 24,532,640 1,849,768
1,364,083$ 1,843,793$ 968,818$ 28,168,392$ 1,690,041$
724,122$ (264)$ 261,237$ 1,456,678$ 320,243$
10,655 388,543 33,979 2,569,020 458,739
(2,955) - (1,512) (11,616) -
- - 22,284 22,284 -
- - - (34,440) -
- 16,041 500 (86,269) (380)
- 53,000 (3,088) (10,838) 483
- -- 16,188 -
50,223 - - 50,223 -
(2,186) - (903) (10,484) (8,160)
196 - (633) (88) -
61,408 - 59,481 203,719 -
35,254 265,580 365 312,249 (7,832)
(187) - - 8,580 -
(5,095) - 9,757 5,154 2,114
7,318 - 1,039 3,297 28,388
(131,321) - (143,438) (461,703) -
324 - 252 3,047 -
108,963 - 76,861 315,467 -
- - -(29,137)
856,719$ 722,900$ 316,181$ 4,321,331$ 793,595$
-$ -$ -$ -$ 5,789$
-$ 81,108$ -$ 155,956$ (21,223)$
-$ -$ 385,689$ 385,689$ 103,211$
Business-Type Activities – Enterprise Funds
The notes to the financial statements are an integral part of this statement.
-
31
Notes to the Financial Statements – December 31, 2023 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 by the Governmental Accounting Standards Board (GASB). GASB is the
accepted standard-setting body for establishing governmental accounting and financial reporting
principles.
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 council members and five members from the community
appointed by the City Council. Management of the city has complete operational responsibility of the
EDA’s activities, and the City Council reviews and approves the tax levy and all expenditures for the EDA.
Because the council does not make up a majority of the EDA board and there is no financial burden or
benefit relationship between the city and EDA, the EDA is reported as a discretely presented component
unit of the city as a separate column in the government-wide financial statements. 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 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 are 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 is reported in
single columns in the respective fund financial statements.
32
Notes to the Financial Statements – December 31, 2023 CITY OF MONTICELLO
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 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 in the current
period or soon enough thereafter to pay liabilities of the current period. For this purpose, the city considers
revenues to be available if they are collected within 60 days of the end of the current fiscal period.
Expenditures 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 earnings 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. Only the portion of special assessments receivable due within the current fiscal
period is susceptible to accrual as revenue of the current period. All other revenue items are measurable
and available only when cash is received by the city.
Revenue resulting from exchange transactions, in which each party gives and receives essentially equal
value, is recorded on the accrual basis when the exchange takes place. On a modified accrual basis,
revenue is recorded in the year in which the resources are measurable and become available.
Non-exchange transactions, in which the city receives value without directly giving equal value in return,
include property taxes, grants, entitlement and donations. On an accrual basis, revenue from property
taxes is recognized in the year for which the tax is levied. Revenue from grants, entitlements and
donations is recognized in the year in which all eligibility requirements have been satisfied. Eligibility
requirements include timing requirements, which specify the year when the resources are required to be
used or the year when use is first permitted, matching requirements, in which the city must provide local
recourses to be used for specified purpose, and expenditure requirements, in which the resources are
provided to the city of a reimbursement basis. On a modified accrual basis, revenue from non-exchange
transactions must also be available before it can be recognized.
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 operations of 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.
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).
33
Notes to the Financial Statements – December 31, 2023 CITY OF MONTICELLO
Major Proprietary Funds – The city reports the following major proprietary (enterprise) funds:
Water Fund – The Water Fund is used to account for all activities necessary to provide water services
to the residents and businesses of the city.
Sewer Fund – The Sewer Fund is used to account for all activities necessary to provide sewer
services to the residents and businesses of the city.
Stormwater Fund – The Stormwater 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 Fund is used to account for the operations of the city’s liquor store.
Fiber Optics Fund – The Fiber Optics 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 Fund is used to account for the operation of the city’s
department of motor vehicles.
Additionally, the city reports the following fund type:
Internal Service Funds – These funds account for the city’s benefit accrual, central equipment,
information technology, and facilities maintenance 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 (or departments) 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 and the city’s investments policy. Earnings from investments are allocated
to the respective funds based on 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
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,
34
Notes to the Financial Statements – December 31, 2023 CITY OF MONTICELLO
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 earnings are 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.
Securities and certificates of deposit 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
The city council sets property tax levies each year which are certified to Wright County for collection in
the following year. In Minnesota, counties function 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 three 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 as of 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.
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 managed 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.
35
Notes to the Financial Statements – December 31, 2023 CITY OF MONTICELLO
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 accounts.
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 2023.
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. Lease Receivable
The City’s lease receivable is measured at the present value of lease payments expected to be received
during the lease terms.
A deferred inflow of resources is recorded for leases. The deferred inflow of resources is recorded at the
initiation of each lease in an amount equal to the initial recording of the lease receivable. The deferred
inflow of resources is amortized on a straight-line basis over the term of each lease.
I. 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.
J. Prepaid Items
Payments to vendors for services that will benefit future accounting periods are recorded as prepaid
items. 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.
K. 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 loaned to another entity are offset by deferred inflows of resources in the governmental funds.
L. Land Held for Resale
Land held for resale is recorded in the governmental Capital Project Fund and discretely presented
Economic Development Authority Fund component unit 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 as these
assets are not available for appropriation.
M. 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 and are not reported in the governmental funds
financial statements. Such assets are capitalized at historical cost or estimated historical cost for assets
where actual historical cost is not available.
36
Notes to the Financial Statements – December 31, 2023 CITY OF MONTICELLO
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 and useful life 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. In the case of initial capitalization of general infrastructure
assets, the city elected to fully capitalize the infrastructure capital assets regardless of their acquisition
date or amount.
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 land improvements 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 assets 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 period of issuance. 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 withheld from the actual debt proceeds
received or not, 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 and employment status. All new full-time employees receive PTO, while one employee
still receives 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 and terminated 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.
37
Notes to the Financial Statements – December 31, 2023 CITY OF MONTICELLO
Vacation benefit: Up to 1-½ times the employee’s annual accrual 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.
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.
The following is a summary of the net pension 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,
2023:
Q. Other Post-Employment Benefits (OPEB) Liability
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.
R. 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 assets that applies to future periods and so will not be recognized as an inflow of
resources (revenue) until that time.
The city has four 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 state aid and grants 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 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. Fourth, deferred lease resources are reported in both the fund financial statements
Deferred Deferred
Net Pension Outflows of Inflows of Pension
Pension Plan Liability Resources Resources Expense
State-wide, mulit-
employer - PERA 3,517,297$ 928,517$ 1,058,000$ 634,942$
Single-employer - FRA 180,758 571,649 180,621 164,446
3,698,055$ 1,500,166$ 1,238,621$ 799,388$
38
Notes to the Financial Statements – December 31, 2023 CITY OF MONTICELLO
and the statement of net position and result from present value calculations related to the lease
receivable.
S. 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.”
T. 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.
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.
U. 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 the 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 fund.
V. 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.
39
Notes to the Financial Statements – December 31, 2023 CITY OF MONTICELLO
NOTE 2. CASH, CASH EQUIVALENTS, AND INVESTMENTS
A. Components of Cash and Investments
Cash and investments at year-end consist of the following:
B. Deposits
In accordance with applicable Minnesota Statutes, the city maintains deposits at depository banks
authorized by the city council, including checking accounts and non-negotiable certificates of deposit.
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 and is considered the most significant risk associated with deposits.
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, including the EDA, was $11,403,716 while the
balance on bank records was $8,989,586. All deposits were covered by federal depository insurance,
surety bonds, or by collateral held by the city’s agent in the city’s name. The primary government and the
EDA component unit deposits and investments are pooled.
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 $10,000,000; that are a primary reporting dealer in U.S. government
Total
Primary Component Reporting
Government Unit - EDA Entity
Deposits 7,180,950$ 4,222,766$ 11,403,716$
Investments 49,282,073 - 49,282,073
Cash on hand 8,345 - 8,345
Total cash and investments – Statement of Net Position 56,471,368$ 4,222,766$ 60,694,134$
40
Notes to the Financial Statements – December 31, 2023 CITY OF MONTICELLO
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. Other than the federal
government, no single issuer held more than 5% of the city’s total investments as of December 31, 2023.
Interest Rate Risk – This is the risk of potential variability in the fair value of fixed rate investments
resulting from changes in interest rates (the longer the period for which an interest rate is fixed, the greater
the risk). The city’s investment policy does not further address the duration of investments.
The Minnesota Municipal Money Market Fund (4M Fund) is a common-law trust organized in accordance
with the Minnesota Joint Powers Act, which invests only in investment instruments allowable under
Minnesota Statutes. It is an external investment pool regulated by Minnesota statutes and the Board of
Directors of the League of Minnesota Cities. The 4M Fund is not registered with the Securities Exchange
Commission (SEC), but it follows the same regulatory rules of the SEC. The fair value of the city’s position
in the pool is the same as the value of the pool shares. The 4M Fund does not have any restrictions on
participant withdrawals. The city’s investment in the 4M Fund is measured at the net asset value per
share provided by the pool, which is based on an amortized cost method that approximates fair value.
The city’s cash management and investment policy complies with all statutory requirements.
D. Cash on hand
Cash on hand consists of cash in the possession of the city, including petty cash and change funds.
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 -$ 1,020,334$ 664,415$ -$ 1,684,749$ 3.4%
Federal Farm Credit Bank AAA Moody's Level 2 399,968 261,528 -$ -$ 661,496 1.3%
Federal Agriculture Mortgage
Corporation N/R N/A Level 2 - - 638,538 - 638,538 1.3%
Federal Home Loan Bank AA+ S&P Level 2 - 2,618,253 746,959 - 3,365,212 6.8%
Federal Home Loan Bank AAA Moody's Level 2 - 237,778 - 310,338 548,116 1.1%
Federal Home Loan Mortgage
Corporation AA+ S&P Level 2 282,677 - - - 282,677 0.6%
Negotiable certificates of deposit N/R N/A Level 2 2,140,898 14,008,847 1,929,720 - 18,079,465 36.8%
Local government securities AAA S&P Level 2 - 86,757 - - 86,757 0.2%
Local government securities AA+ S&P Level 2 139,320 313,292 399,267 - 851,879 1.7%
Local government securities AA S&P Level 2 - 147,708 256,689 157,576 561,973 1.1%
Local government securities Aaa Moody’s Level 2 - 405,056 396,756 - 801,812 1.6%
Investment pools and mutual funds N/R N/A Amortized Cost 21,649,255 - - - 21,649,255 43.8%
Investment pools and mutual funds AAA S&P Amortized Cost 70,144 - - - 70,144 0.1%
Total investments 24,682,262$ 19,099,553$ 5,032,344$ 467,914$ 49,282,073$ 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, 2023 CITY OF MONTICELLO
NOTE 3. LEASE RECEIVABLE
The City had the following lease receivables as of December 31, 2023:
The City leases building space located at 101 Chelsea Road, Monticello, Minnesota, to the Great River
Soccer club at the above terms. The lease of this former bowling alley is for the use of recreational areas
for soccer practice.
The City leases monopole and water tower space to Verizon Wireless to provide for the use of city
property to operate and maintain communication equipment. The monopole agreement was amended in
2023 as shown above.
Current Year
Issue Maturity Inflow of Balance at
Date Date Resources Year End
Antenna Lease Agreements
Great River Soccer Club - Building Space 08/24/21 05/31/26 1.80 % 14,124$ 33,377$
Verizon Wireless - Monopole Antenna 10/01/14 03/31/23 1.80 7,601 -
Verizon Wireless - Monopole Antenna 04/01/23 03/31/68 2.83 19,350 1,364,526
Verizon Wireless - Water Tower Antenna 05/01/17 05/01/44 1.80 27,833 630,789
Total Lease Receivable 2,028,692$
Discount
Description Rate
42
Notes to the Financial Statements – December 31, 2023 CITY OF MONTICELLO
NOTE 4. CAPITAL ASSETS
Capital asset activities for the year ended December 31, 2023 are as follows:
January 1,Transfers and December 31,
Beginning Completed Ending
Balance Additions Deletions Construction Balance
Governmenta l activitie s
Nondepreciable capital assets
Land 16,903,464$ 455,614$ -$ -$ 17,359,078$
Construction in progress 1,696,704 11,795,471 - (1,043,657) 12,448,518
Total capital assets, not depreciated 18,600,168 12,251,085 - (1,043,657) 29,807,596
Depreciable capital assets
Buildings and systems 105,739,455 203,573 - 471,299 106,414,327
Machinery and equipment 10,055,983 844,206 (398,468) - 10,501,721
Total capital assets, depreciated 115,795,438 1,047,779 (398,468) 471,299 116,916,048
Less accumulated depreciation for
Buildings and systems (57,620,893) (3,426,335) - 186,669 (60,860,559)
Machinery and equipment (4,806,894) (619,125) 379,471 - (5,046,548)
Total accumulated depreciation (62,427,787) (4,045,460) 379,471 186,669 (65,907,107)
Net capital assets, depreciated 53,367,651 (2,997,681) (18,997) 657,968 51,008,941
Total governmental activities 71,967,819$ 9,253,404$ (18,997)$ (385,689)$ 80,816,537$
Business-type activitie s
Nondepreciable capital assets
Land 804,010$ 63,000$ -$ -$ 867,010$
Construction in progress 921,047 400,791 - (123,065) 1,198,773
Total capital assets, not depreciated 1,725,057 463,791 - (123,065) 2,065,783
Depreciable capital assets
Buildings and systems 106,413,498 261,638 (63,697) 695,423 107,306,862
Machinery and equipment 3,570,582 133,592 (52,466) - 3,651,708
Total capital assets, depreciated 109,984,080 395,230 (116,163) 695,423 110,958,570
Less accumulated depreciation for
Buildings and systems (67,612,148) (2,427,546) 41,414 (186,669) (70,184,949)
Machinery and equipment (2,151,991) (141,474) 52,464 - (2,241,001)
Total accumulated depreciation (69,764,139) (2,569,020) 93,878 (186,669) (72,425,950)
Net capital assets, depreciated 40,219,941 (2,173,790) (22,285) 508,754 38,532,620
Total business-type activities 41,944,998$ (1,709,999)$ (22,285)$ 385,689$ 40,598,403$
43
Notes to the Financial Statements – December 31, 2023 CITY OF MONTICELLO
Depreciation for the year ended December 31, 2023 was charged to functions/programs as follows:
NOTE 5. COMMITMENTS
The city has awarded contracts for various improvement projects. The city’s commitments for
uncompleted work on these contracts as of December 31, 2023 are as follows:
In 2019, the city entered into an investment agreement with Novel Solar LLC (Novel) at various solar
farms. 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. The energy credit varies based on market value of solar electricity. Payments on the contract
began in 2020, but amounts vary each month based on kilowatt-hours produced.
Additionally, the city entered into a solar investment contract with Nokomis Energy in 2022 which operates
in a similar manner as the Novel agreements except the city pays $0.01/kWh less than the energy credit
on the monthly electric bills from Xcel Energy. Payment on this contract began in 2023.
NOTE 6. LONG-TERM LIABILITIES
A. Description
The city has the following types of long-term liabilities outstanding as of December 31, 2023:
General Obligation Bonds – The general obligation bond issues financed a settlement with
telecommunication revenue bondholders, capital equipment purchases in the Central Equipment
and Capital Projects funds, and construction of a new fire station.
Governmental activities
General government 25,077$
Public safety 292,463
Public works 2,586,702
Recreation and culture 682,479
Capital assets held by the City’s internal service funds –
charged to the various functions based on usage of assets 458,739
Total depreciation expense – governmental activities 4,045,460$
Business-type activities
Water 493,027$
Sewer 1,196,048
Stormwater 446,768
Liquor 10,655
Fiber Optics 388,543
Deputy Registrar 33,979
Total depreciation expense – business-type activities 2,569,020$
Amount
Contract Paid Remaining
Fund Project Description Amount To-Date 12/31/2023
Capital Projects School Blvd Safe Routes to School 913,736$ 838,276$ 75,460$
Pinewood Elementary Safe Routes to School (Elm Street) 1,164,439 1,095,838 68,601
Downtown Roadway & Pedestrian Improvement Project 10,790,214 6,281,768 4,508,446
Parks & Pathways BCOL Phase 2 1,097,250 1,037,753 59,497
Water SCADA Improvements 545,685 527,647 18,038
Sewer SCADA Improvements 545,685 527,647 18,038
Stormwater Stormwater Improvements 492,794 481,925 10,869
15,549,804$ 10,790,855$ 4,758,949$
44
Notes to the Financial Statements – December 31, 2023 CITY OF MONTICELLO
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 $3,014,189 and
principal and interest payments were $244,705 for a percentage of revenues of 8.1%.
PFA General Obligation Revenue Note – This note was issued for improvements to the
wastewater treatment plant and is payable primarily from user fees which benefit from the
improvements.
Compensated Absences – The city provides vacation and sick or paid-time-off (PTO) leave
benefits to eligible employees. The liability will be repaid by the Benefit Accrual fund or respective
enterprise fund for which each employee is employed.
Total OPEB Liability – The city provides post-employment benefits to certain eligible employees
through the city’s OPEB Plan. The liability will be repaid based on a pay-as-you-go financing
requirement from the General fund or applicable enterprise fund.
Net Pension Liability – City employees participate in one state-wide, multiple-employer, defined
benefit pension plan administered by the Public Employees Retirement Association (PERA) per
Minnesota state statute. The liability reflects the city’s portion of the total net pension liability of
the PERA plan based on a percentage of contributions into the plan. The liability will be repaid
by the General fund or applicable enterprise fund.
Long-term liabilities at year-end are summarized as follows:
Final
Original Interest Maturity Balance –
Issue Rate % Issue Date Date End of Year
Governmental activities
General obligation bonds
2014A General obligation bonds 515,000$ 1.00 - 3.05 12/18/2014 12/15/2024 60,000$
2019A General obligation bonds
CIP portion 5,350,000 2.00 - 2.30 09/18/2019 12/15/2034 4,095,000
equipment portion 1,290,000 2.00 09/18/2019 12/15/2028 750,000
Special assessments bonds
2015B General obligation bonds 2,605,000 1.50 - 3.00 11/01/2015 12/15/2030 1,330,000
2016A General obligation bonds 4,900,000 2.00 - 3.00 11/15/2016 12/15/2030 1,745,000
2017A General obligation bonds 2,040,000 2.00 - 2.50 10/24/2017 12/15/2027 870,000
2019A General obligation bonds 320,000 2.00 09/18/2019 12/15/2028 185,000
2020A General obligation bonds 2,155,000 0.45 - 2.00 09/09/2020 12/15/2030 1,550,000
Tax abatement bonds
2017A General obligation bonds 2,960,000 2.00 - 3.00 10/24/2017 12/15/2032 1,900,000
2018A General obligation bonds 5,000,000 3.00 - 3.38 10/23/2018 12/15/2032 3,460,000
2019A General obligation bonds 1,040,000 2.00 - 2.20 09/18/2019 12/15/2032 750,000
Compensated absences payable 334,687
Total governmental activities 17,029,687$
Business-type activities
General obligation revenue bonds
2013B Wastewater treatment bonds 3,000,000$ 2.00 - 3.35 % 12/01/2013 12/01/2028 1,120,000$
Public Facility Authority G.O.
Sewer Revenue Note (2015A)2,214,632 1.06 08/26/2015 08/20/2035 1,378,000
Compensated absences payable 105,622
Total business-type activities 2,603,622$
45
Notes to the Financial Statements – December 31, 2023 CITY OF MONTICELLO
B. Changes in Long-Term Liabilities
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. As of December 31, 2023, the city’s legal debt
margin was $73,665,280. The statutes provide that debt issues supported by tax increment, special
assessment revenues or available dedicated reserves are excluded from the total limited debt.
E. Conduit Debt
From time to time, the city has issued bonds or notes to provide financial assistance to private sector
entities for the acquisition and construction of housing or commercial facilities deemed to be in the public
interest. The bonds or notes are secured by the property financed and are payable solely from payments
received on the underlying mortgage loans or leases. Upon repayment of the bonds, ownership of the
acquired facilities transfers to the private sector entity served by the bond issuance. The city is not
obligated in any manner for repayment of the bonds or notes. Accordingly, the bonds are not reported as
liabilities in the accompanying financial statements. No new conduit debt was issued in 2023.
January 1,December 31, Due Within
2023 Additions Retirements 2023 One Year
Governmental activities
General obligation bonds 5,435,000$ -$ (530,000)$ 4,905,000$ 540,000$
Special assessment bonds 6,780,000 - (1,100,000) 5,680,000 1,120,000
Tax abatement bonds 6,700,000 - (590,000) 6,110,000 605,000
Compensated absences 306,299 289,718 (261,330) 334,687 301,220
Total governmental activities 19,221,299$ 289,718$ (2,481,330)$ 17,029,687$ 2,566,220$
Business-type activities
General obligation
revenue bonds 1,325,000$ -$ (205,000)$ 1,120,000$ 210,000$
PFA revenue note 1,485,000 - (107,000) 1,378,000 108,000
Compensated absences 102,325 102,608 (99,311) 105,622 95,060
Total business-type activities 2,912,325$ 102,608$ (411,311)$ 2,603,622$ 413,060$
Component Unit activities
Compensated absences 13,747$ 7,525$ (6,397)$ 14,875$ 13,387$
Year Ending
December 31, Principal Interest Principal Interest Principal Interest Principal Interest Principal Interest
2024 540,000$ 102,148$ 1,120,000$ 120,893$ 605,000$ 171,473$ 210,000$ 34,375$ 108,000$ 14,648$
2025 490,000 90,718 1,145,000 97,618 625,000 155,973 215,000 28,600 109,000 13,500
2026 500,000 80,918 1,165,000 77,150 640,000 139,973 225,000 22,150 111,000 12,341
2027 510,000 70,918 730,000 51,825 655,000 122,573 230,000 15,400 112,000 11,162
2028 520,000 60,718 520,000 33,650 680,000 104,748 240,000 8,040 113,000 9,971
2029 - 2033 1,935,000 174,328 1,000,000 31,300 2,905,000 223,218 - - 583,000 31,592
2034 - 2035 410,000 9,430 - - - - - - 242,000 3,869
4,905,000$ 589,175$ 5,680,000$ 412,435$ 6,110,000$ 917,955$ 1,120,000$ 108,565$ 1,378,000$ 97,084$
Business-Type Activities
PFA Revenue Note
Governmental Activities
General Obligation BondsGeneral Obligation Bonds Tax Abatement Bonds
Special
Assessment Bonds
Entity Description Issue Date Original Issue Current Balance
Ice Arena Project 2014 Revenue Refunding Note 9/4/2014 1,111,000$ 570,274$
Swan River 2017A and 2017B Educational
Facilities Revenue Notes 10/2/2017 2,225,000 1,697,256
2,267,529$
46
Notes to the Financial Statements – December 31, 2023 CITY OF MONTICELLO
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 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 a development agreement with a private developer for a property in a city tax increment
district. As part of the agreement, the city has agreed to reimburse the developer for certain costs through
a pay-as-you-go tax increment note.
This note provides for the payment of principal equal to the developer’s costs, plus interest at a rate of
5.5% (interest accrual commencing at date of original issue). Payments of the note will be made at the
lesser of the scheduled note payment or the actual net tax increment received during the period specified
in the agreement. The note, classified as an abatement, will be canceled at the end of the agreement
term, whether it has been fully repaid or not.
The city currently has one agreement that would be considered tax abatements under GASB Statement
77. The outstanding principal balance as of December 31, 2023 is listed in the following table. This note
is 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.
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, 2023, there are no
arbitrage rebates owed.
Name Purpose
Amount of
taxes abated
during the fiscal
Outstanding
principal balance
at year-end
Date of
required
decertification
63,018$ 785,000$ 12/31/2045
1-40
Briggs
47-unit rental housing facility
with affordability component
47
Notes to the Financial Statements – December 31, 2023 CITY OF MONTICELLO
I. Revenue Pledged
Future revenue pledged for the payment of long-term debt is as follows:
NOTE 7. DEFINED BENEFIT PENSION PLANS – STATE-WIDE
A. Plan Description
The city participates in the General Employees Retirement Fund (GERF) cost-sharing multiple-employer
defined benefit pension plan administered by the Public Employees Retirement Association of Minnesota
(PERA). PERA’s defined benefit pension plans are established and administered in accordance with
Minnesota Statutes, Chapters 353 and 356. PERA’s defined benefit pension plans are tax qualified plans
under Section 401 (a) of the Internal Revenue Code.
General Employees Retirement Fund (General Employees Plan)
All full-time and certain part-time employees of the city are covered by the General Employees Plan.
General Employees Plan members belong to the Coordinated Plan. Coordinated Plan members are
covered by Social Security.
B. Benefits Provided
PERA provides retirement, disability, and death benefits. Benefit provisions are established by state
statute and can only be modified by the state legislature. Vested, terminated employees who are entitled
to benefits but are not receiving them yet are bound by the provisions in effect at the time they last
terminated their public service.
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. 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. Recipients receiving the annuity or benefit for at least one month but less than
a full year as of 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.
2013B G.O.
Wastewater
Treatment Bonds PFA Note
Use of proceeds Sewer Fund Sewer Fund
Revenue pledged
Type Utility charges Utility charges
Percent of total debt service 45%55%
Term of pledge 2013-2028 2015-2035
Remaining principal & interest 1,228,565$ 1,475,084$
Current year
Principal and interest paid 244,705$ 122,786$
Pledged revenue received 1,356,385$ 1,657,804$
Description
48
Notes to the Financial Statements – December 31, 2023 CITY OF MONTICELLO
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 2023, 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, 2023, were $388,213.
The city’s contributions were equal to the required contributions as set by state statute.
D. Pension Costs
General Employees Fund Pension Costs
As of December 31, 2023, the city reported a liability of $3,517,297 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
$97,059.
The net pension liability was measured as of June 30, 2023, and the total pension liability used to
calculate the net pension liability was determined by an actuarial valuation as of 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, 2022, through June 30, 2023,
relative to the total employer contributions received from all PERA’s participating employers. The city’s
proportionate share was 0.0629%, which was an increase of 0.0014% from its proportionate share at
June 30, 2022.
For the year ended December 31, 2023, the city recognized pension expense of $619,173 for its
proportionate share of the General Employees Fund’s pension expense, and the EDA recognized
$15,333. In addition, the city recognized an additional $425 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 and $11 to the EDA’s Employees Fund’s.
As of December 31, 2023, 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:
$194,511 reported as deferred outflows of resources related to pensions resulting from the city and
component unit’s contributions subsequent to the measurement date will be recognized as a reduction of
the net pension liability in the year ended December 31, 2024.
Deferred Outflows Deferred Inflows Deferred Outflows Deferred Inflows
of Resources of Resources of Resources of Resources
Differences between expected and
actual economic experience 112,115$ 21,803$ 2,777$ 540$
Changes in actuarial assumptions 513,590 940,764 12,718 23,297
Net collective difference between
projected and actual investment earnings - 69,866 - 1,730
Changes in proportion 90,563 - 2,243 -
Contributions paid to PERA subsequent
to the measurement date 189,811 - 4,700 -
Total 906,079$ 1,032,433$ 22,438$ 25,567$
Primary Government Component Unit - EDA
49
Notes to the Financial Statements – December 31, 2023 CITY OF MONTICELLO
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. Long-Term Expected Return on Investment
The State Board of Investment, which manages the investments of PERA, prepares an analysis of the
reasonableness on a regular basis of the long-term expected rate of return using a building-block method
in which best-estimate ranges of expected future rates of return are developed for each major asset class.
These ranges are combined to produce an expected long-term rate of return by weighting the expected
future rates of return by the target asset allocation percentages. The target allocation and best estimates
of geometric real rates of return for each major asset class are summarized in the following table:
F. Actuarial Methods and Assumptions
The total pension liability in the June 30, 2023, actuarial valuation was determined using an individual
entry-age normal actuarial cost method. The long-term rate of return on pension plan investments used
in the determination of the total liability is 7.0 percent. This assumption is based on a review of inflation
and investments return assumptions from a number of national investment consulting firms. The review
provided a range of return investment return rates deemed to be reasonable by the actuary. An
investment return of 7.0 percent was deemed to be within that range of reasonableness for financial
reporting purposes.
Inflation is assumed to be 2.25 percent for the General Employees Plan. Benefit increases after
retirement are assumed to be 1.25 percent for the General Employees Plan
Salary growth assumptions in the General Employees Plan range in annual increments from 10.25
percent after one year of service to 3.0 percent after 27 years of service.
Mortality rates for the General Employees Plan are based on the Pub-2010 General Employee Mortality
Table. The tables are adjusted slightly to fit PERA’s experience.
Actuarial assumptions for the General Employees Plan are reviewed every four years. The most recent
four-year experience study for the General Employees Plan was completed in 2022. The assumption
changes were adopted by the Board and became effective with the July 1, 2023 actuarial valuation.
The following changes in actuarial assumptions and plan provisions occurred in 2023:
The investment return assumption and single discount rate were changed from 6.5 percent
to 7.0 percent.
Changes in Plan Provisions:
o An additional one-time direct state aid contribution of $170.1 million will be
contributed to the Plan on October 1, 2023.
Year ended Primary Component
December 31, Government Unit - EDA
2024 137,407$ 3,403$
2025 (449,466) (11,130)
2026 70,352 1,742
2027 (74,458) (1,844)
(316,165)$ (7,829)$
Long-Term
Target Expected Real
Allocation Rate of Return
Domestic stocks 33.5% 5.10%
International stocks 16.5% 5.30%
Bonds (fixed income) 25.0% 0.75%
Alternative assets (private markets) 25.0% 5.90%
Total 100.0%
Asset Class
50
Notes to the Financial Statements – December 31, 2023 CITY OF MONTICELLO
o The vesting period of those hired after June 30, 2010, was changed from five years
of allowable service to three years of allowable service.
o The benefit increase delay for early retirements on or after January 1, 2024, was
eliminated.
o A one-time, non-compounding benefit increase of 2.5 percent minus the actual 2024
adjustment will be payable in a lump sum for calendar year 2024 by March 31, 2024.
G. Discount Rate
The discount rate used to measure the total pension liability in 2023 was 7.0%. 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.
H. 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:
I. 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 8. PUBLIC EMPLOYEES DEFINED CONTRIBUTION PENSION PLANS
All council members of the city are covered by the Public Employees Defined Contribution Plan, a
multiple-employer deferred compensation plan administered by PERA. However, only three of the five
Council members choose to participate in the plan. The Defined Contribution Plan is a tax qualified plan
under Section 401(a) of the Internal Revenue Code and all contributions by or on behalf of employees
are tax deferred until time of withdrawal.
Plan benefits depend solely on amounts contributed to the plan plus investment earnings, less
administrative expenses. Minnesota Statutes, Chapter 353D.03, specifies plan provisions, including the
employee and employer contribution rates for those qualified personnel who elect to participate. An
eligible elected official who decides to participate contributes 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 2023 were:
1% Decrease Discount 1% Increase
(6.0%) Rate (7.0%) (8.0%)
General Employees Fund
Primary Government 6,072,017$ 3,432,301$ 1,261,035$
Component Unit - EDA 150,365 84,996 31,228
Total 6,222,382$ 3,517,297$ 1,292,263$
City Proportionate Share of NPL
Required
Employee Employer Employee Employer Rate
1,080$ 1,080$ 5.00% 5.00% 5.00%
Contribution Amount % of Covered Payroll
51
Notes to the Financial Statements – December 31, 2023 CITY OF MONTICELLO
NOTE 9. 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, 2023, the
plan covered 30 active firefighters and 6 retirees and beneficiaries. The plan is a single-employer
retirement plan that is established and administered in accordance with Minnesota statute, chapter 69.
The Association maintains a separate Special fund to accumulate assets to fund the retirement benefits
earned by the Department’s membership. Funding for the Association is derived from voluntary
contributions from the city and 2% fire aid from the State of Minnesota, as well as from investment income.
B. Benefits Provided
Upon approval by the Board of Trustees, lump sum retirement benefits are 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 $5,100 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 $5,100 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 $164,446 in fire state aid to the plan on behalf of the city fire department for the year ended
December 31, 2023, which was recorded as a deferred outflow of resources because the city records the
FRA pension activity as of December 31, 2022. 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, 2023 were $164,446. 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.
52
Notes to the Financial Statements – December 31, 2023 CITY OF MONTICELLO
D. Actuarial Assumptions
The total pension liability as of December 31, 2023 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
As of December 31, 2023, the city reported a net pension liability of $180,758 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, 2022. For the year ended December 31, 2023, the Fire Department
recognized a pension expense of $164,446.
As of December 31, 2023, the city reported deferred outflows/inflows of resources as follows:
Amounts reported as deferred outflows and inflows of resources related to pensions will be recognized
in pension expense as follows:
The 3.57% long-term expected rate of return on pension plan investments was determined using a
building-block method in which best estimates for expected future real rates of return (expected returns,
net of inflation) were developed for each asset class using the plan’s target investment allocation along
with long-term return expectations by asset class. Inflation expectations were applied to derive the
nominal rate of return for the portfolio.
Benefit increases 2.00% per year
Cost of living increases 2.10% per year
Investment rate of return 3.57%
20 year municipal bond yield 2.06%
Deferred Deferred
Outflows Inflows
of Resources of Resources
Differences between expected and
actual economic experience 225,256$ 174,874$
Changes in actuarial assumptions 43,205 5,747
Net difference between projected
and actual investment earnings 138,742 -
Contributions paid to FRA subsequent
to the measurement date 164,446 -
571,649$ 180,621$
Pension
Year ended Expense
December 31, Amount
2024 10,459$
2025 35,288
2026 52,445
2027 63,571
2028 5,755
Thereafter 59,064
226,582$
53
Notes to the Financial Statements – December 31, 2023 CITY OF MONTICELLO
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 3.57%. The projection of cash flows
used to determine the discount rate assumed that contributions to the FRA plan will be made as specified
in statute. Based on that assumption and considering the funding ratio of the plan, the fiduciary net
position was projected to be available to make all projected future benefit payments of current active and
inactive members. Therefore, the long-term expected rate of return on pension plan investments was
applied to all periods of projected benefit payments to determine the total pension liability.
H. Pension Asset Sensitivity
The following presents the city’s net pension liability (asset) for the FRA plan, calculated using the
discount rate disclosed in the preceding paragraph, as well as what the city’s net pension liability (asset)
would be if it were calculated using a discount rate 1 percentage point lower or 1 percentage point higher
than the current discount rate:
I. Pension Plan Fiduciary Net Position
The Association issues a publicly available financial report that includes financial statements and required
supplementary information. A copy of the report may be obtained at Monticello City Hall.
Long-term
Target Expected Real
Allocation Rate of Return
Cash 1.1% -1.09%
Mutual funds 98.9%2.47%
100.0%
Asset Class
Total Plan Net Pension
Pension Fiduciary Liability
Liability (TPL) Net Position (Asset)
(a)(b)(a-b)
Beginning balance 12/31/2022 1,459,556$ 1,712,617$ (253,061)$
Changes for the year
Service cost 111,576 - 111,576
Interest on total pension liability 50,536 - 50,536
Differences between actual and expected
experience in measurement of TPL 185,765 - 185,765
Contributions from employer -146,181 (146,181)
Supplemental benefits reimbursed -3,000 (3,000)
Net investment income -(228,981)228,981
Benefit payments (199,527) (199,527)-
-(6,141) 6,141 Administrative expenses
Ending balance 12/31/2023 1,607,907$ 1,427,149$ 180,758$
1% Decrease 1% Increase
In Discount Discount In Discount
Rate (2.57%) Rate (3.57%) Rate (4.57%)
Net Pension Liability 275,285$ 180,758$ 103,391$
54
Notes to the Financial Statements – December 31, 2023 CITY OF MONTICELLO
NOTE 10. 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 $8,704.
D. Membership
Membership in the plan consisted of the following as of the latest actuarial valuation:
E. Total OPEB Liability of the City
The city’s total OPEB liability of $135,572 as of year-end was measured as of January 1, 2023 and was
determined by an actuarial valuation as of January 1, 2023.
F. Actuarial Assumption
The total OPEB liability was determined by an actuarial valuation as of January 1, 2022, using the
following actuarial assumptions, applied to all periods included in the measurement, unless otherwise
specified:
Primary Component
Government Unit - EDA Total
Retirees and beneficiaries receiving benefits 1 - 1
Active plan members 37 1 38
Total members 38 1 39
Discount rate 2.00%
20-year municipal bond yield 2.00%
Inflation rate 2.00%
Salary increases 3.00%
6.5% grading to 5.0% over 6 years,
then to 4.0% over 48 yearsMedical trend rate
55
Notes to the Financial Statements – December 31, 2023 CITY OF MONTICELLO
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 2.00%, 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 Pub-2010 Public Retirement Plans General Headcount-Weighted
Mortality Tables with MP-2020 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.
The mortality tables were updated from the Pub-2010 Public Retirement Plans General
Headcount-Weighted Mortality Tables with MP-2020 Generational Improvement Scale to the
Pub-2010 Public Retirement Plans General Headcount-Weighted Mortality Tables with MP-
2021 Generational Improvement Scale.
The inflation rate was changed from 2.00% to 2.50%.
The discount rate was changed from 2.00% to 4.00%.
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:
Primary Component Total OPEB
Government Unit - EDA Liability
Beginning balance 165,867$ 2,537$ 168,404$
Changes for the year
Service cost 9,032 185 9,217
Interest 3,397 69 3,466
Changes in assumptions (14,966) (305) (15,271)
Differences between expected and actual exper (21,109) (431) (21,540)
Benefit payments – employer financed (8,530) (174) (8,704)
(32,176) (656) (32,832)
Ending balance 133,691$ 1,881$ 135,572$
1% Decrease in Discount 1% Increase in
Discount Rate Rate Discount Rate
OPEB discount rate 1.00%2.00%3.00%
Primary Government $140,361 $134,018 $123,124
Component Unit - EDA 4,341 1,554 3,808
Discount Sensitivity
56
Notes to the Financial Statements – December 31, 2023 CITY OF MONTICELLO
The following presents the total OPEB liability of the city, as well as what the city’s total OPEB liability
would be if it were calculated using healthcare cost trend rates that are 1 percentage point lower or 1
percentage point higher than the current healthcare cost trend rates:
I. OPEB Expense and Related Deferred Outflows of Resources and Deferred Inflows of
Resources
For the current year ended, the city recognized OPEB expense of ($16,966). 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:
1% Decrease in Healthcare Trend 1% Increase in
Healthcare Trend Rate Rate Healthcare Trend Rate
OPEB medical trend rate 5.25% decreasing to 6.25% decreasing to 7.25% decreasing to
4.00% over 5 years 5.00% over 5 years 6.00% over 5 years
Primary Government $119,155 $134,018 $145,952
Component Unit - EDA 3,685 1,554 4,514
Deferred Deferred Deferred Deferred
Outflows Inflows Outflows Inflows
of Resources of Resources of Resources of Resources
Liability gains 3,141$ 71,044$ 57$ 470$
Assumption changes 101 13,219 2 88
Benefit payments after the measurement date 7,490 - 134 -
Total 10,732$ 84,263$ 193$ 558$
Primary Government Component Unit - EDA
Year Ending Primary Component
December 31, Government Unit - EDA
2024 (31,917)$ (195)$
2025 (31,905) (197)
2026 (5,008) (31)
2027 (6,098) (38)
2028 (6,093) (38)
(81,021)$ (499)$
57
Notes to the Financial Statements – December 31, 2023 CITY OF MONTICELLO
NOTE 11. FUND BALANCES
As of December 31, 2023, a summary of the city’s governmental fund balance classifications are as
follows:
NOTE 12. INTERFUND TRANSFERS
Interfund transfers for the year ended December
31, 2023 are as follows:
The following schedule reflects each fund transfer:
NOTE 13. 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 Insurance Trust (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, 2023 will not materially affect the financial condition of the city.
Component Unit
Debt Economic
General Community Service Capital Nonmajor Development
Fund Center Fund Projects Funds Total Authority
Nonspendable
Prepaid items 122,287$ 29,800$ -$ -$ 455$ 152,542$ 5,033$
Restricted
- - 727,936 - - 727,936 -
- - - - 939,252 939,252 1,308,127
- - - - 147,756 147,756 -
158,146 158,146 -
639,732 - - - - 639,732 -
Debt service
Economic development
Cemetery maintenance
Park improvements
Public Safety
Tax increment - - - - - - 973,477
Total restricted 639,732 - 727,936 - 1,245,154 2,612,822 2,281,604
Assigned
Capital improvements - - - 9,642,528 2,475,317 12,117,845 -
Economic development - - - - - - 4,866,003
Community center operations - 514,103 - - - 514,103 -
Total assigned - 514,103 - 9,642,528 2,475,317 12,631,948 4,866,003
Unassigned 7,416,654 - - - - 7,416,654 -
Total 8,178,673$ 543,903$ 727,936$ 9,642,528$ 3,720,926$ 22,813,966$ 7,152,640$
Transfers In Transfers Out
Governmental funds
General -$ 750,000$
Capital Projects 3,500,000 -
Nonmajor governmental 1,250,000 -
Total governmental funds 4,750,000 750,000
Enterprise funds
- 2,250,000 Liquor
Deputy Registrar - 1,750,000
Total enterprise funds - 4,000,000
4,750,000$ 4,750,000$
Transfers Out Amount
Capital Projects General Fund 750,000 (1)
Capital Projects Liquor 1,000,000 (2)
Capital Projects Deputy Registrar 1,750,000 (2)
Street Lighting
Improvements Liquor 250,000 (2)
Park & Pathway Liquor 1,000,000 (3)
Total 4,750,000$
(1) Transfer to allocate available fund reserves to future
capital project costs.
(2) Transfer to provide funding to Downtown Roadway &
Pedestrian Project.
(3) Transfer to provide funding for Bertram Chain of
Lakes Phase II Project.
Transfers In
58
- - - -
Notes to the Financial Statements – December 31, 2023 CITY OF MONTICELLO
Workers compensation coverage is procured through Bitco 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 coverage from the previous year and there were no
settlements in excess of insurance coverage in each of the past three years.
NOTE 14. CLAIMS AND JUDGMENTS
The city participates in several 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, 2023, certain amounts of grant expenditures have not been audited by the granting
agency, but the city believes that disallowed expenditures discovered in subsequent audits, if any, will
not have a material effect on any of the individual funds or the overall financial position of the city.
NOTE 15. CONCENTRATION OF REVENUES
Cargill Kitchen Solutions is the largest customer of water and sewer services. The company’s water
purchases account for $110,002, or 5.2%, of Water Fund operating revenue; and the company’s sewer
charges account for $475,204, or 15.8%, of Sewer Fund operating revenue.
Additionally, Northern States Power Company’s (Xcel Energy) net tax capacity for property taxes payable
in 2023 is $13,154,350, or 34.5 percent, of the total net capacity of $38,169,079. Accordingly, Xcel
Energy’s share of the $12.05 million city property tax levy is $4.16 million. The tax capacity on January
1, 2023, is based on market values certified to the state on January 1, 2022.
NOTE 16: CHANGE IN ACCOUNTING STANDARD
For fiscal year 2023, the city changed the measurement period associated with reporting for the Fire
Relief Association’s pension activities. Per GASB Statement No. 68, the city may choose to report using
current year information or a measurement date up to one year prior to the date of the city’s financial
statements.
The city originally chose to report using current year information. Beginning in 2023, the city will use the
pension activity from one year prior to the financial statement date for purposes of FRA pension reporting.
59
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60
REQUIRED SUPPLEMENTARY
INFORMATION
CITY OF MONTICELLO
Required Supplementary Information
Schedule of Employer's Share and Non-Employer Proportionate Share of Net Pension Liability (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
Payroll
Employer's
Proportionate
Share of the
Net Pension
Liability as a
Percentage of
Covered
Payroll
Plan
Fiduciary Net
Position as a
Percentage of
the Total
Pension
Liability
2015 0.0578% $2,995,496 $0 $2,995,496 $3,395,756 88.21% 78.2%
2016 0.0588% 4,774,268 62,387 4,836,655 3,651,024 130.77% 68.9%
2017 0.0549% 3,504,780 44,041 3,548,821 3,534,506 99.16% 75.9%
2018 0.0550% 3,051,175 100,077 3,151,252 3,697,145 82.53% 79.5%
2019 0.0565% 3,123,758 96,996 3,220,754 3,997,826 78.14% 80.2%
2020 0.0568% 3,405,420 104,919 3,510,339 4,048,023 84.13% 79.1%
2021 0.0580% 2,476,859 75,675 2,552,534 4,176,545 59.30% 87.0%
2022 0.0615% 4,870,820 142,791 5,013,611 4,608,333 105.70% 76.7%
2023 0.0629% 3,517,297 97,059 3,614,356 5,005,265 70.27% 83.1%
Schedule of Employer's Pension Contributions (1)
Public Employees Retirement Association - General Employees Retirement Fund
Fiscal Year
Ending
December 31,
Statutorily
Required
Contributions
(a)
Contribution
Deficiency
(Excess)
(a-b)
(2)
Covered
Payroll
(c)
2015 266,042$ -$ 3,547,217$
2016 267,516 - 3,566,884
2017 269,721 - 3,596,280
2018 287,700 - 3,835,998
2019 308,216 - 4,109,547
2020 304,809 - 4,064,114
2021 321,643 - 4,288,573
2022 363,693 - 4,849,241
2023 388,213 - 5,176,171
(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 payroll is defined as "pensionable wages."
287,700
308,216
304,809
7.5%
7.5%
7.5%
7.5%
Public Employees Retirement Association - General Employees Retirement Fund
Contributions as a Percentage
of Covered Payroll
(b/c)
7.5%
Contributions in Relation to the
Statutorily Required
Contributions
(b)
267,516
269,721
$266,042 7.5%
388,213 7.5%
363,693 7.5%
321,643 7.5%
61
CITY OF MONTICELLO
Required Supplementary Information
Schedule of Changes in the Fire Relief Association's Net Pension Liability (Asset) and Related Ratios (1)
2015 2016 2017 2018 2019 2020 2021 2022 2023
Total pension liability
Service cost 77,343$ 79,730$ 66,097$ 71,325$ 69,774$ 69,921$ 111,407$ 111,576$ -$
Interest 41,888 44,224 49,857 49,897 50,829 43,168 40,329 50,536 -
Changes in benefit terms - 90,761 67,016 74,540 - - 207,898 - -
Experience gain/(loss)- (53,156) (30,666) 94,235 (148,892) (20,335) (18,598) 185,765 -
Effect of changes in assumptions - - (10,673) - 8,770 - 44,564 - -
Benefit payments, including refund of
member contributions (128,101) (1,168) (164,699) (121,900) (321,833) - - (199,527) -
Net change in total pension liability (8,870) 160,391 (23,068) 168,097 (341,352) 92,754 385,600 148,350 -
Total pension liability - beginning 1,026,005 1,017,135 1,177,526 1,154,458 1,322,555 981,203 1,073,957 1,459,557 1,607,907
Total pension liability - ending (A)1,017,135$ 1,177,526$ 1,154,458$ 1,322,555$ 981,203$ 1,073,957$ 1,459,557$ 1,607,907$ 1,607,907$
Plan fiduciary net position
Contributions - State 120,027$ 123,656$ 125,764$ 130,874$ 122,639$ 128,638$ 134,691$ 146,181$ -$
Supplemental benefits reimbursements 2,000 - 2,000 1,000 5,068 - - 3,000 -
Net investment income (17,673) 55,902 126,579 (54,150) 172,359 139,820 110,486 (228,981) -
Benefit payments, including refund of
member contributions (128,101) (1,168) (164,699) (121,900) (321,833) - - (199,527) -
Administrative expenses (3,532) (4,144) (4,331) (4,929) (5,204) (5,453) (5,508) (6,141) -
Net change in plan fiduciary net position (27,279) 174,246 85,313 (49,105) (26,971) 263,005 239,669 (285,468) -
Plan fiduciary net position - beginning 1,053,739 1,026,460 1,200,706 1,286,019 1,236,914 1,209,943 1,472,948 1,712,617 1,427,149
Plan fiduciary net position - ending (B)1,026,460$ 1,200,706$ 1,286,019$ 1,236,914$ 1,209,943$ 1,472,948$ 1,712,617$ 1,427,149$ 1,427,149$
Net pension liability (asset) - ending (A)-(B) (9,325) (23,180) (131,561) 85,641 (228,740) (398,991) (253,060) 180,758 180,758
Plan fiduciary net position as a percentage
of the total pension liability 100.9% 102.0% 111.4% 93.5% 123.3% 137.2% 117.3% 88.8% 88.8%
Covered employee payroll (2)N/A N/A N/A 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 N/A N/A N/A
Schedule of Employer's Pension Contributions - Monticello Fire Department Relief Association (1)
(1) The city implemented GASB Statement No. 68 in fiscal 2015 using a December 31, 2015 measurement date. The city changed from current year reporting to one-year look back
reporting in 2023.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).
2023 - - - 164,446
2021
2022 146,181
2018
2019
2020
134,691
122,639
128,638
130,874
- -
-
- -
-
Statutorily Required
Contributions
(a)
City Fiscal
Year Ending
December 31,
2015
2016
2017
-$
Non-Employer Contribution -
State 2% Fire Aid
120,027$
123,656
125,764
-
Actual Contributions Paid
(b)
-$
-
-
-
-
-
-
-
-
-
-
-
Contribution Deficiency
(Excess)
(a-b)
-$
-
-
-
62
CITY OF MONTICELLO
Required Supplementary Information
Schedule of Changes in the City's Total OPEB Liability and Related Ratios (1)
2018 2019 2020 2021 2022 2023
Total OPEB liability
Service cost 24,158$ 10,152$ 10,457$ 11,264$ 11,602$ 9,217$
Interest 9,998 10,347 5,210 5,726 3,378 3,466
Changes in assumptions - (2,047) - 208 - (15,271)
Differences between expected and actual experience - (187,489) - 6,399 - (21,540)
Benefit payments (5,938) (13,277) (2,040) (3,765) (7,684) (8,704)
Net change in total OPEB liability 28,218 (182,314) 13,627 19,832 7,296 (32,832)
Total OPEB liability - beginning 281,745 309,963 127,649 141,276 161,108 168,404
Total OPEB liability - ending 309,963$ 127,649$ 141,276$ 161,108$ 168,404$ 135,572$
Covered employee payroll 3,130,628$ 2,462,725$ 2,536,607$ 2,763,483$ 2,846,387$ 3,484,325$
Total OPEB liability as a percentage of covered
employee payroll 10%5%6%6%6%4%
(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.
(2) No plan assets are accumulated in a trust that meets the criteria in paragraph 4 of GASB Statement No. 75.
63
CITY OF MONTICELLO
Schedule of Revenues, Expenditures and Changes in Fund Balance
Budget and Actual - General Fund
For the Year Ended December 31, 2023
101
Original and Final Variance with
Budget Actual Final Budget
Revenues
Property taxes 8,084,500$ 8,056,454$ (28,046)$
Franchise taxes 292,000 243,482 (48,518)
Special assessments 100 156 56
Licenses and permits 484,000 930,901 446,901
Intergovernmental 513,895 1,224,989 711,094
Charges for services 1,291,510 1,486,973 195,463
Fines and forfeitures 51,600 52,413 813
Investment earnings 32,095 434,085 401,990
Other revenues 730,300 784,190 53,890
Total revenues 11,480,000 13,213,643 1,733,643
Expenditures:
Current
General government
Mayor and council 59,462 46,094 (13,368)
City administration 1,045,775 962,203 (83,572)
City clerk 214,549 217,318 2,769
Finance 664,739 663,348 (1,391)
Legal 27,500 36,802 9,302
Human resources 165,336 162,457 (2,879)
Planning and zoning 354,158 532,437 178,279
City hall 82,182 75,872 (6,310)
Public safety
Law enforcement 1,869,245 1,872,417 3,172
Fire and rescue 483,309 508,194 24,885
Fire relief 140,000 164,446 24,446
Building inspections 680,289 618,254 (62,035)
Emergency Management 22,032 6,952 (15,080)
Animal control 63,992 74,648 10,656
National Guard 19,500 19,068 (432)
Public works
Public works administration 166,456 150,092 (16,364)
Public works inspections 340,801 320,369 (20,432)
Streets and alleys 1,250,020 1,308,793 58,773
Ice and snow removal 453,741 294,882 (158,859)
Shop and garage 320,948 283,711 (37,237)
Street lighting 292,000 243,482 (48,518)
Sanitation
Refuse and recycling collection 843,897 817,199 (26,698)
Recreation and culture
Senior center 101,863 102,773 910
Park operations 1,428,756 1,500,932 72,176
Park ballfields 26,200 22,667 (3,533)
Shade tree 145,707 127,872 (17,835)
Public arts 173,528 154,267 (19,261)
Library 38,015 41,867 3,852
Total expenditures 11,474,000 11,329,416 (144,584)
Excess of revenues over expenditures 6,000 1,884,227 1,878,227
Other financing sources (uses)
Sale of capital assets - 1,650 1,650
Transfers out (6,000) (750,000) (744,000)
Total other financing sources (uses)(6,000) (748,350) (742,350)
Net change in fund balance - 1,135,877 1,135,877
Fund balance at beginning of year 7,042,796 7,042,796 -
Fund balance at end of year 7,042,796$ 8,178,673$ 1,135,877$
64
CITY OF MONTICELLO
Schedule of Revenues, Expenditures and Changes in Fund Balance
Budget and Actual - Community Center Fund
For the Year Ended December 31, 2023
226
Original and Final Variance with
Budget Actual Final Budget
Revenues
Property taxes 515,000$ 515,000$ -$
Intergovernmental 400,000 415,396 15,396
Charges for services 1,186,600 1,255,214 68,614
Investment earnings 1,200 17,868 16,668
Other revenues 19,200 34,339 15,139
Total revenues 2,122,000 2,237,817 115,817
Expenditures
Current
Recreation and culture
Operations 520,357 543,301 22,944
Rentals 19,179 4,153 (15,026)
Aquatics 260,830 323,492 62,662
Concessions & guest services 228,007 268,385 40,378
Maintenance 736,430 747,345 10,915
Programming 230,197 228,814 (1,383)
Capital outlay
Rentals - 16,707 16,707
Aquatics 80,000 - (80,000)
Maintenance - 11,136 11,136
Programming 47,000 - (47,000)
Total expenditures 2,122,000 2,143,333 21,333
Net change in fund balance - 94,484 94,484
Fund balance at beginning of year 449,419 449,419 -
Fund balance at end of year 449,419$ 543,903$ 94,484$
65
Notes to the Required Supplementary Information 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:
2023
Changes in Actuarial Assumptions
The investment return assumption and single discount rate were changed from 6.5% to 7%.
Changes in Plan Provisions
An additional one-time direct state aid contribution of $170.1 million will be contributed to the
Plan on October 1, 2023.
The vesting period of those hired after June 30, 2020, was changed from five years of allowable
service to three years of allowable service.
The benefit increase delay for early retirements on or after January 1, 2024, was eliminated.
A one-time, non-compounding benefit increase of 2.5% minus the actual 2024 adjustment will be
payable in a lump sum for calendar year 2024 by March 31,2024.
2022
Changes in Actuarial Assumptions
The mortality improvement scale was changed from Scale MP-2020 to Scale MP-2021.
Changes in Plan Provisions
There were no changes in plan provisions since the previous valuation.
2021
Changes in Actuarial Assumptions
The investment return and single discount rates were changed from 7.50 percent to 6.50 percent,
for financial reporting purposes.
The mortality improvement scale was changed from Scale MP-2019 to Scale MP-2020.
Changes in Plan Provisions
There were no changes in plan provisions since the previous valuation.
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.
66
Notes to the Required Supplementary Information CITY OF MONTICELLO
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.
67
Notes to the Required Supplementary Information 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
2023 – The city changed from using the current year FRA pension information to using the results
from the FRA on a one-year lookback basis.
2021 – The discount rate was decreased from 4.25% to 3.57%, which is primarily due to a lower
weighted average rate of return on the FRA’s asset classes of investment. The benefit level was
increased from $4,200 to $5,100 per year of service.
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.
68
Notes to the Required Supplementary Information CITY OF MONTICELLO
NOTE 3. SCHEDULE OF CHANGES IN THE CITY’S TOTAL OPEB LIABILITY AND RELATED
RATIOS
Changes in Actuarial Assumptions
2023 – The health care trend rates were changed to better anticipate short term and long-term
medical increases. The mortality tables were updated from the Pub-2010 Public Retirement
Plans General Headcount-Weighted Mortality Tables with <P-2020 Generational Improvement
Scale to the Pub-2010 Public Retirement Plans General Headcount-Weighted Mortality Tables
with MP-2021 Generational Improvement Scale. The inflation rate was changed from 2% to
2.5%. The discount rate was changed from 2% to 4%. These changes decreased the liability
$15,271.
2021 – The healthcare 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 the MP-2018 Generational Improvement Scale to the Pub-2010 Public Retirement
Plans General Headcount-Weighted Mortality Tables with MP-2020 Generational Improvement
Scale. The salary increase rates were changed from a flat 3% per year for all employees to rates
which vary by service. The retirement and withdrawal rates were updated. The inflation rate
changed from 2.50% to 2.00%. The discount rate was changed from 3.80% to 2.00%.
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.
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 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
69
Notes to the Required Supplementary Information CITY OF MONTICELLO
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, 2023, expenditures exceeded appropriations in the Community
Center Fund by $21,333. The excess of expenditures was related to bank charges higher than
expected. Revenues above budget were used to fund the additional expenditure.
70
NONMAJOR GOVERNMENTAL
FUNDS
NONMAJOR GOVERNMENTAL FUNDS
SPECIAL REVENUE FUNDS are used to account for revenue derived from specific taxes or other
earmarked revenue sources (other than for major capital projects) that are restricted by law or
administrative action to expenditures for specified purposes.
Small Cities Development Program (SCDP) Fund - Established to account for the administration of
loans to local businesses while following state and federal guidelines.
Cemetery Fund – Established to account for the activities of cemetery operations at Riverside
Cemetery.
CAPITAL PROJECTS FUNDS are used to account for resources used for the acquisition and
construction of capital assets by the city, except for those financed by proprietary funds.
Street Lighting Improvement Fund – This fund was established to account for activities incorporating
street lighting into designated areas throughout the city. A portion of the city’s electric franchise fee is
the main revenue source for this fund.
Park & Pathway Improvement Fund – This fund was established to account for the accumulation of
unrestricted resources from other sources used for park and pathway improvements.
Park Dedication Fund – This fund was established to account for restricted fees collected from
developers for park land acquisition and for park and pathway improvements.
CITY OF MONTICELLO
Combining Balance Sheet
Nonmajor Governmental Funds
December 31, 2023
221 215 403 404 405
Small Cities Street
Development Lighting Park &Park
Program Cemetery Improvement Pathway Dedication Total
ASSETS
Cash and investments 828,765$ 147,906$ 1,651,525$ 842,711$ 158,146$ 3,629,053$
Receivables
Deferred special assessments - - - - 3,702 3,702
Accounts - - 46,353 - - 46,353
Prepaid items - 455 - - - 455
Notes receivable 110,487 - - - - 110,487
Total assets 939,252$ 148,361$ 1,697,878$ 842,711$ 161,848$ 3,790,050$
LIABILITIES
Accounts and contracts payable -$ 150$ -$ 65,272$ -$ 65,422$
DEFERRED INFLOWS OF RESOURCES
Unavailable revenue - special assessments - - - - 3,702 3,702
FUND BALANCES
Nonspendable - 455 - - - 455
Restricted
Economic development 939,252 - - - - 939,252
Cemetery maintenance - 147,756 - - - 147,756
Park improvements - - - - 158,146 158,146
Assigned for capital improvements - - 1,697,878 777,439 - 2,475,317
Total fund balances 939,252 148,211 1,697,878 777,439 158,146 3,720,926
Total liabilities, deferred inflows of
resources, and fund balances 939,252$ 148,361$ 1,697,878$ 842,711$ 161,848$ 3,790,050$
Capital Projects FundsSpecial Revenue Funds
71
CITY OF MONTICELLO
Combining Statement of Revenues, Expenditures and Changes in Fund Balance
Nonmajor Governmental Funds
For the Year Ended December 31, 2023
245
221 215 403 404 405
Small Cities 651 Street
Development Lighting Park & Park
Program Cemetery Improvement Pathway Dedication Total
Revenues
Franchise taxes -$ -$ 157,109$ -$ -$ 157,109$
Special assessments - - - - 815 815
Charges for services - 43,727 - - 50,247 93,974
Investment earnings 37,961 6,494 71,449 57,919 6,378 180,201
Interest on loans 3,082 - - - - 3,082
Other revenues - 4,150 - - - 4,150
Total revenues 41,043 54,371 228,558 57,919 57,440 439,331
Expenditures
Current
Recreation and culture - 24,003 - 7,670 - 31,673
Capital outlay
Public works - - 38,563 - - 38,563
Recreation and culture - - - 1,480,417 - 1,480,417
Total expenditures - 24,003 38,563 1,488,087 - 1,550,653
Excess (deficiency) of
revenues over (under) expenditures 41,043 30,368 189,995 (1,430,168) 57,440 (1,111,322)
Other financing sources
Transfers in - - 250,000 1,000,000 - 1,250,000
Net change in fund balance 41,043 30,368 439,995 (430,168) 57,440 138,678
Fund balance at beginning of year 898,209 117,843 1,257,883 1,207,607 100,706 3,582,248
Fund balance at end of year 939,252$ 148,211$ 1,697,878$ 777,439$ 158,146$ 3,720,926$
Special Revenue Funds Capital Projects Funds
72
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.
Facilities Management Fund – This fund was established to account for the accumulation and
distribution of various Facility Maintenance related costs across the city owned properties.
CITY OF MONTICELLO
Combining Statement of Net Position
Internal Service Funds
December 31, 2023
704 703 702 701
Benefit Central IT Facilities
Accrual Equipment Services Maintenance Total
ASSETS
Current assets
Cash and investments 345,847$ 1,094,372$ 119,907$ 129,915$ 1,690,041$
Accounts receivable - - - 380 380
Prepaid items - - 64,448 1,492 65,940
Total current assets 345,847 1,094,372 184,355 131,787 1,756,361
Noncurrent assets
Capital assets
Machinery and equipment - 4,815,082 308,399 - 5,123,481
Construction in progress - 318,157 - - 318,157
Less accumulated depreciation - (1,785,792) (147,093) - (1,932,885)
Total noncurrent assets - 3,347,447 161,306 - 3,508,753
TOTAL ASSETS 345,847 4,441,819 345,661 131,787 5,265,114
LIABILITIES
Current liabilities
Accounts payable - 34,540 3,706 18,753 56,999
Accrued interest payable - 76 - - 76
Due to other governmental units - 2,105 - 100 2,205
Bonds payable due within one year - 60,000 - - 60,000
Compensated absences due within one year 285,482 - 743 14,993 301,218
Total current liabilities 285,482 96,721 4,449 33,846 420,498
Noncurrent liabilities
Compensated absences payable 31,721 - 82 1,666 33,469
TOTAL LIABILITIES 317,203 96,721 4,531 35,512 453,967
NET POSITION
Net investment in capital assets - 3,287,447 161,306 - 3,448,753
Unrestricted 28,644 1,057,651 179,824 96,275 1,362,394
TOTAL NET POSITION 28,644$ 4,345,098$ 341,130$ 96,275$ 4,811,147$
73
CITY OF MONTICELLO
Combining Statement of Revenues, Expenses and Changes in Net Position
Internal Service Funds
For the Year Ended December 31, 2023
701
704 703 702 701
Benefit Central IT Facilities
Accrual Equipment Services Maintenance Total
Operating revenues
Charges to other funds 26,757$ 633,000$ 529,009$ 423,592$ 1,612,358$
Other revenues - 14,255 9,665 165,192 189,112
Total operating revenues 26,757 647,255 538,674 588,784 1,801,470
Operating expenses
Personal services 26,757 - 104,480 135,968 267,205
Materials and supplies - - 28,413 53,117 81,530
Other services and charges - - 333,650 340,103 673,753
Depreciation - 412,692 46,047 - 458,739
Total operating expenses 26,757 412,692 512,590 529,188 1,481,227
Operating income - 234,563 26,084 59,596 320,243
Nonoperating revenues (expenses)
Investment earnings 14,730 62,023 4,871 774 82,398
Interest expense - (4,047) - - (4,047)
Total nonoperating revenues (expenses)14,730 57,976 4,871 774 78,351
Income before capital contributions 14,730 292,539 30,955 60,370 398,594
Capital contributions - 103,211 - - 103,211
Change in net position 14,730 395,750 30,955 60,370 501,805
Net position at beginning of year 13,914 3,949,348 310,175 35,905 4,309,342
Net position at end of year 28,644$ 4,345,098$ 341,130$ 96,275$ 4,811,147$
74
CITY OF MONTICELLO
Combining Statement of Cash Flows
Internal Service Funds
For the Year Ended December 31, 2023
704 703 702 701
Benefit Central IT Facilities
Accrual Equipment Services Maintenance Total
Cash flow from operating activities
Cash received from internal services provided 26,757$ 647,738$ 538,674$ 588,404$ 1,801,573$
Cash paid to suppliers for goods and services - 36,645 (406,516) (399,290) (769,161)
Cash paid to employees - - (103,935) (134,882) (238,817)
Net cash provided (used) by operating activities 26,757 684,383 28,223 54,232 793,595
Cash flows from capital and related financing activities
Acquisition of capital assets - (971,600) - - (971,600)
Principal payments on long-term debt - (60,000) - - (60,000)
Interest and fiscal charges paid on long-term debt - (4,120) - - (4,120)
Net cash (used) by capital and related financing activities - (1,035,720) - - (1,035,720)
Cash flows from investing activities
Interest on investments 14,730 62,023 4,871 774 82,398
Increase (decrease) in cash and cash equivalents 41,487 (289,314) 33,094 55,006 (159,727)
Cash and cash equivalents - January 1 304,360 1,383,686 86,813 74,909 1,849,768
Cash and cash equivalents - December 31 345,847$ 1,094,372$ 119,907$ 129,915$ 1,690,041$
Reconciliation of operating income (loss) to net cash
provided by operating activities:
Operating income -$ 234,563$ 26,084$ 59,596$ 320,243$
Adjustments to reconcile operating income to
Net cash provided by operating activities:
Depreciation - 412,692 46,047 - 458,739
Changes in assets and liabilities:
(Increase) decrease in prepaid items - - (8,975) 815 (8,160)
(Increase) decrease in accounts receivable - - - (380) (380)
(Increase) decrease in due from other government units - 483 - - 483
Increase (decrease) in accounts payable - 34,540 (35,478) (6,894) (7,832)
Increase (decrease) in due to other government units - 2,105 - 9 2,114
Increase (decrease) in compensated absences 26,757 - 545 1,086 28,388
Net cash provided (used) by operating activities 26,757$ 684,383$ 28,223$ 54,232$ 793,595$
Schedule of noncash capital and related financing activities:
Disposal of capital assets -$ 5,789$ -$ -$ 5,789$
Capital assets purchased on account -$ -$ (21,223)$ -$ (21,223)$
Capital contributions -$ 103,211$ -$ -$ 103,211$
75
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76
OTHER SUPPLEMENTARY
SCHEDULES
CITY OF MONTICELLO
Schedule of Revenues (Sources) and Expenditures (Uses)
General Fund
For the Year Ended December 31, 2023
2023 Variance with
2019 2020 2021 2022 Final 2023 Final
Actual Actual Actual Actual Budget Actual Budget
Revenue and other sources - summary
Property taxes 6,689,647$ 6,797,640$ 7,233,198$ 7,485,252$ 8,084,500$ 8,056,454$ (28,046)$
Franchise taxes 211,000 194,000 193,585 226,690 292,000 243,482 (48,518)
Special assessments 802 166 468 418 100 156 56
Licenses and permits 603,925 521,369 804,889 613,014 484,000 930,901 446,901
Intergovernmental 431,004 737,650 625,382 609,105 513,895 1,224,989 711,094
Charges for services 792,311 936,731 1,274,062 1,382,291 1,291,510 1,486,973 195,463
Fines and forfeitures 40,054 31,852 49,566 36,808 51,600 52,413 813
Investment earnings (loss)228,216 138,968 (38,486) (200,442) 32,095 434,085 401,990
Other 236,037 431,683 690,999 949,507 730,300 784,190 53,890
Other financing sources 54,340 - - - - 1,650 1,650
Total Revenues & Other Sources 9,287,336 9,790,059 10,833,663 11,102,643 11,480,000 13,215,293 1,735,293
Revenue and other sources - detail
Property taxes
Property tax - current 6,649,999 6,758,778 7,159,058 7,436,942 8,060,000 8,037,370 (22,630)
Property tax - delinquent 17,832 15,998 49,891 20,753 - 14,712 14,712
Mobile home tax 18,202 20,152 22,033 - 22,000 - (22,000)
Penalties and interest - taxes 3,614 2,712 2,216 27,557 2,500 4,372 1,872
Franchise taxes
Franchise taxes - electric 211,000 194,000 193,585 226,690 292,000 243,482 (48,518)
Special assessments
Assessment for services/projects 802 166 468 418 100 156 56
Licenses and permits
Liquor license 52,303 37,512 1,500 63,198 60,000 55,028 (4,972)
Other business licenses & permits 7,540 6,430 4,378 5,023 7,000 5,040 (1,960)
Building permits 520,409 461,383 770,800 529,120 400,000 847,991 447,991
Variance/conditional use permits - 200 - - - - -
Driveway permits 510 275 155 675 200 990 790
Mobile home permits 2,551 540 5,954 1,000 300 2,056 1,756
Excavation permits 6,720 8,375 11,025 7,360 5,000 8,295 3,295
Right-of-way permits 4,567 3,061 2,674 2,542 3,000 4,681 1,681
Sign/banner permits 6,020 2,840 5,623 3,430 4,500 4,110 (390)
Animal licenses 3,305 753 2,780 666 4,000 2,710 (1,290)
Intergovernmental
Pera increase aid 6,741 - - - - - -
Homestead and ag credit - - 181 188 - 187 187
Federal - operating - 274,315 10,000 - - 18,254 18,254
State highway aid - operating 155,211 171,913 179,842 198,895 198,895 195,535 (3,360)
Fire department aid - operating 123,640 131,638 134,691 146,181 140,000 164,446 24,446
Police department aid - operating 81,708 84,631 82,526 90,713 81,000 746,338 665,338
County operating grant - street/highway 26,428 30,947 27,870 32,427 26,000 36,038 10,038
County operating grant - emergency management 7,531 3,977 11,111 7,594 19,000 5,224 (13,776)
County operating grant - recycling 19,745 20,944 19,546 20,112 19,000 18,119 (881)
Operating grant - other 10,000 19,285 159,615 112,995 30,000 40,848 10,848
Charges for services
Assessment searches 13,940 17,530 18,691 9,030 13,000 8,550 (4,450)
County assessor fee - - 400 2,950 - 3,600 3,600
Blight notice fee - - 120 300 - 480 480
Planning administration fee 24,571 5,550 6,600 6,425 4,000 5,575 1,575
NSF fee - - 30 30 - 30 30
Inspection/construction fees 907 827 1,306 560 300 1,274 974
Contractor licensing fee 720 340 475 175 - 215 215
Fire protections fees - townships 142,740 143,533 143,899 144,570 148,779 150,350 1,571
Fire emergency response fee 19,210 57,650 5,160 2,380 5,000 (7,695) (12,695)
Fire inspection fee - - 50 - - 200 200
Fire - other fees 3,345 2,359 13,011 3,815 3,000 4,273 1,273
Blight mowing fees - - 470 940 - 600 600
Rental housing fees 42,835 45,365 45,910 58,565 41,000 46,830 5,830
Animal control fees 38,915 40,428 49,002 58,544 60,000 47,588 (12,412)
Miscellaneous pubic works - - - - - 900 900
Tree and brush removal charge 2,580 2,730 2,275 3,300 2,300 2,100 (200)
Recycling charge - 54,259 104,305 195,197 291,600 281,812 (9,788)
Garbage fee - taxable 381,328 467,829 518,244 555,426 585,400 579,366 (6,034)
Field/Tourney fees 13,200 4,415 30,980 35,700 32,000 37,500 5,500
Park rental fees 5,751 5,386 11,798 11,212 12,000 12,488 488
Alcohol Fees - - - 360 - 660 660
Concessions - - - 1,297 - 620 620
Arts activity fees 400 - - - - 2,091 2,091
Developer cost reimbursement 19,498 13,656 233,371 223,120 46,000 254,307 208,307
Billboard land rental 23,475 21,714 24,367 22,101 2,400 2,400 -
Lease - Prairie Center 30,154 24,098 32,501 - - - -
Lease - Soccer Club - - - 14,124 14,100 17,569 3,469
Lease - communication tower 26,300 26,959 28,872 29,738 30,631 30,530 (101)
General charges for services 2,442 2,103 2,225 2,432 - 2,760 2,760
(continued)
77
CITY OF MONTICELLO
Schedule of Revenues (Sources) and Expenditures (Uses)
General Fund
For the Year Ended December 31, 2023 (Continued)
2023 Variance with
2019 2020 2021 2022 Final 2023 Final
Actual Actual Actual Actual Budget Actual Budget
Fines and forfeitures
Court fines 38,454$ 31,170$ 47,866$ 35,658$ 50,000$ 52,113$ 2,113$
Animal impound fines 1,100 682 700 650 1,600 300 (1,300)
Liquor license violation 500 - 1,000 500 - - -
Investment earnings
Investment earnings (loss)228,216 138,968 (38,486) (200,442) 32,095 434,085 401,990
Other
Solar investment rebates - 326,917 427,842 496,430 570,000 484,877 (85,123)
City property rental 1,600 277 1,600 1,900 - 2,150 2,150
Contributions 42,567 2,218 36,707 128,953 57,500 100,333 42,833
Sale of city property 3,096 16,945 12,475 23,502 5,000 8,472 3,472
Sale of lock boxes 2,400 3,544 38,097 10,812 5,000 2,856 (2,144)
Tree Sales 6,752 5,346 9,127 9,453 7,000 9,052 2,052
Copies 47 87 27 38 - 47 47
Refunds & reimbursables 21,663 24,026 75,692 55,822 - 22,638 22,638
Assessment fee reimbursement 16,575 15,300 14,700 16,875 15,000 15,900 900
Fire contributions 84,149 3,764 28,009 16,999 - 16,964 16,964
Insurance claims 1,867 - 6,944 140,257 25,000 21,455 (3,545)
Other miscellaneous 55,321 33,259 39,779 48,466 45,800 99,446 53,646
Other financing sources
Sales of capital assets 29,340 - - - - 1,650 1,650
Transfers from other funds 25,000 - - - - - -
Total revenues and other sources 9,287,336$ 9,790,059$ 10,833,663$ 11,102,643$ 11,480,000$ 13,215,293$ 1,735,293$
Expenditures and other uses - summary
General government 1,775,332$ 2,168,641$ 2,639,420$ 2,684,854$ 2,613,701$ 2,696,531$ 82,830$
Public safety 2,451,784 2,745,974 2,874,183 2,989,883 3,278,367 3,263,979 (14,388)
Public works 2,222,034 1,899,315 2,123,898 2,400,555 2,823,966 2,601,329 (222,637)
Sanitation 610,944 681,948 754,132 784,052 843,897 817,199 (26,698)
Recreation and culture 1,209,429 1,331,196 1,457,483 1,691,871 1,914,069 1,950,378 36,309
Transfers out and other uses 1,450,040 1,000,000 1,000,000 150,000 6,000 750,000 744,000
Total expenditures and other uses 9,719,563$ 9,827,074$ 10,849,116$ 10,701,215$ 11,480,000$ 12,079,416$ 599,416$
Expenditures and other uses - divisions
General government
Mayor and council 57,409$ 52,589$ 57,171$ 55,262$ 59,462$ 46,094$ (13,368)$
City administration 443,963 789,820 951,793 938,931 1,045,775 962,203 (83,572)
City clerk 121,197 180,824 125,286 227,096 214,549 217,318 2,769
Finance 456,902 451,819 455,839 625,523 664,739 663,348 (1,391)
Audit 45,940 39,559 44,797 - - - -
City assessing 64,554 70,115 77,600 - - - -
Legal 41,837 29,340 25,883 24,524 27,500 36,802 9,302
Human resources 142,812 142,232 131,469 139,338 165,336 162,457 (2,879)
Planning and zoning 315,091 339,005 685,172 598,178 354,158 532,437 178,279
City hall 66,422 60,501 68,094 76,002 82,182 75,872 (6,310)
Prairie center building 21,225 14,857 16,316 - - - -
Public safety
Law enforcement 1,455,727 1,524,150 1,602,876 1,633,774 1,869,245 1,872,417 3,172
Fire and rescue 477,941 414,399 459,593 546,373 483,309 508,194 24,885
Fire relief 123,640 131,638 134,691 146,181 140,000 164,446 24,446
Building inspections 324,072 354,251 599,569 583,073 680,289 618,254 (62,035)
Emergency management 8,253 257,565 13,725 6,935 22,032 6,952 (15,080)
Animal control 46,709 49,522 50,586 59,148 63,992 74,648 10,656
National guard 13,423 12,429 13,143 14,399 19,500 19,068 (432)
Public works
Public works administration 228,625 221,881 244,352 140,020 166,456 150,092 (16,364)
Engineering 201,757 182,542 201,435 263,931 340,801 320,369 (20,432)
Streets and alleys 920,384 777,633 919,550 1,153,418 1,250,020 1,308,793 58,773
Ice and snow 454,607 326,120 294,312 320,884 453,741 294,882 (158,859)
Shop and garage 178,063 199,310 269,193 295,613 320,948 283,711 (37,237)
Stormwater 27,650 - - - - - -
Street lighting 210,948 191,829 195,056 226,689 292,000 243,482 (48,518)
Sanitation
Refuse and recycling collection 610,944 681,948 754,132 784,052 843,897 817,199 (26,698)
Recreation and culture
Senior center 102,169 103,662 105,689 108,122 101,863 102,773 910
Park operations 925,482 1,040,665 1,098,446 1,235,095 1,428,756 1,500,932 72,176
Park ballfields 19,836 23,685 28,072 59,754 26,200 22,667 (3,533)
Shade tree 61,396 79,024 87,525 94,217 145,707 127,872 (17,835)
Public arts 46,954 36,092 93,245 146,282 173,528 154,267 (19,261)
Library 53,592 48,068 44,506 48,401 38,015 41,867 3,852
Transfers out and other uses
Transfers out 1,450,040 1,000,000 1,000,000 150,000 6,000 750,000 744,000
Total expenditures & other uses 9,719,564$ 9,827,074$ 10,849,116$ 10,701,215$ 11,480,000$ 12,079,416$ 599,416$
Revenue and other sources over (under)
expenditures and other uses (432,228)$ (37,015)$ (15,453)$ 401,428$ -$ 1,135,877$ 1,135,877$
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, 2023
221
Original and
Final Variance with
Budget Actual Final Budget
Revenues
Investment earnings 5,000$ 37,961$ 32,961$
Interest on loans 3,000 3,082 82
Total revenues 8,000 41,043 33,043
Fund balance at beginning of year 898,209 898,209 -
Fund balance at end of year 906,209$ 939,252$ 33,043$
79
CITY OF MONTICELLO
Schedule of Revenues, Expenditures and Changes in Fund Balance
Budget and Actual - Cemetery Fund
For the Year Ended December 31, 2023
215
Original and
Final Variance with
Budget Actual Final Budget
Revenues
Charges for services 41,700$ 43,727$ 2,027$
Investment earnings 300 6,494 6,194
Other revenues - 4,150 4,150
Total revenues 42,000 54,371 12,371
Expenditures
Current
Recreation and culture
Cemetery operations 31,000 24,003 (6,997)
Net change in fund balance 11,000 30,368 19,368
Fund balance at beginning of year 117,843 117,843 -
Fund balance at end of year 128,843$ 148,211$ 19,368$
80
CITY OF MONTICELLO
Schedule of Assets, Liabilities, Deferred Inflows of Resources and Fund Balances
Debt Service Activities
December 31, 2023
319 320 321 322 323 324
2015B 2016A 2017A 2018A 2019A 2020A
Bonds Bonds Bonds Bonds Bonds Bonds Total
ASSETS
Cash and cash equivalents 112,672$ 158,316$ 158,413$ 82,349$ 54,413$ 163,765$ 729,928$
Receivables
Unremitted special assessments - 695 41 - - 272 1,008
Delinquent special assessments - 177 1,046 - - 2,429 3,652
Deferred special assessments 34,390 182,753 118,456 - 51,150 1,220,555 1,607,304
Total assets 147,062$ 341,941$ 277,956$ 82,349$ 105,563$ 1,387,021$ 2,341,892$
LIABILITIES
Accounts and contracts payable 500$ 500$ 500$ 500$ 500$ 500$ 3,000$
DEFERRED INFLOWS OF RESOURCES
Unavailable revenue - special assessments 34,390 182,930 119,502 - 51,150 1,222,984 1,610,956
FUND BALANCES
Restricted for debt service 112,172 158,511 157,954 81,849 53,913 163,537 727,936
Total liabilities, deferred inflows
of resources, and fund balances 147,062$ 341,941$ 277,956$ 82,349$ 105,563$ 1,387,021$ 2,341,892$
81
CITY OF MONTICELLO
Schedule of Revenues, Expenditures and Changes in Fund Balance
Debt Service Activities
For the Year Ended December 31, 2023
319 320 321 322 323 324
2015B 2016A 2017A 2018A 2019A 2020A
Bonds Bonds Bonds Bonds Bonds Bonds Total
Revenues
Property taxes 164,435$ 282,559$ 299,532$ 444,232$ 697,133$ 111,690$ 1,999,581$
Special assessments 31,242 73,894 37,823 - 13,299 143,930 300,188
Investment earnings 7,290 16,277 13,880 6,056 6,685 9,858 60,046
Total revenues 202,967 372,730 351,235 450,288 717,117 265,478 2,359,815
Expenditures
Debt service
Principal 170,000 480,000 390,000 330,000 580,000 210,000 2,160,000
Interest and fiscal charges 42,500 47,950 77,640 117,938 131,938 28,218 446,184
Total expenditures 212,500 527,950 467,640 447,938 711,938 238,218 2,606,184
Net change in fund balance (9,533) (155,220) (116,405) 2,350 5,179 27,260 (246,369)
Fund balance at beginning of year 121,705 313,731 274,359 79,499 48,734 136,277 974,305
Fund balance at end of year 112,172$ 158,511$ 157,954$ 81,849$ 53,913$ 163,537$ 727,936$
82
DISCRETELY PRESENTED COMPONENT UNIT -
ECONOMIC DEVELOPMENT AUTHORITY
(This page left blank intentionally)
83
Schedule of Assets, Liabilities, Deferred Inflows of Resources and Fund Balances
Discretely Presented Component Unit - Economic Development Authority
December 31, 2023
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 2,163,986$ 1,055,013$ -$ 49,450$ 37,719$ 104,142$ 519,286$ 55,800$
Receivables
Unremitted taxes 753 - - - - - - -
Delinquent taxes 3,057 - - - - - 4,691 -
Accounts 9,126 - - - - - - -
Intrafund receivable 111,607 - - 728,845 - - - -
Prepaid items 5,033 - - - - - - -
Notes receivable 127,246 192,244 - - - - - -
Land held for resale 2,581,729 - - - - - 163,200 -
TOTAL ASSETS 5,002,537$ 1,247,257$ -$ 778,295$ 37,719$ 104,142$ 687,177$ 55,800$
LIABILITIES
Accounts and contracts payable 16,560$ -$ -$ -$ -$ -$ -$ -$
Due to other governmental units 159 - - - - - - -
Intrafund payable - - 45,363 - - - - -
Unearned revenue - - - - - - 163,200 -
Escrow deposits 5,492 - - - - - - -
Total liabilities 22,211 - 45,363 - - - 163,200 -
DEFERRED INFLOWS OF RESOURCES
Unavailable revenue - property taxes 3,057 - - - - - 4,691 -
Total deferred inflows of resources 3,057 - - - - - 4,691 -
FUND BALANCES
Nonspendable 5,033 - - - - - - -
Restricted 60,870 1,247,257 - 778,295 37,719 104,142 519,286 55,800
Assigned
Economic Development 4,711,366 - (45,363) - - - - -
Façade Grant 200,000 - - - - - - -
Total fund balance 4,977,269 1,247,257 (45,363) 778,295 37,719 104,142 519,286 55,800
TOTAL LIABILITIES, DEFERRED
INFLOWS OF RESOURCES,
AND FUND BALANCES 5,002,537$ 1,247,257$ -$ 778,295$ 37,719$ 104,142$ 687,177$ 55,800$
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
84
CITY OF MONTICELLO
TIF 29 TIF 30 TIF 34 TIF 40 TIF 41 TIF 42 TIF 43 TIF 45 TIF 46 GAAP Total
Front Porch CMHP Interchange Briggs UMC Headwaters Headwaters Block 52 WiHa Reconciliation EDA
34,654$ 80,227$ 77,340$ 13,478$ 31,671$ -$ -$ -$ -$ -$ 4,222,766$
- - - - - - - - - - 753
3,325 - - - - - - - - - 11,073
- - - - - - - - - - 9,126
- - - - - - - - - (840,452) -
- - - - - - - - - - 5,033
- - - - - - - - - - 319,490
- - - - - - - - - - 2,744,929
37,979$ 80,227$ 77,340$ 13,478$ 31,671$ -$ -$ -$ -$ (840,452)$ 7,313,170$
-$ -$ -$ -$ -$ -$ 127,246$ -$ -$ -$ 143,806$
- - - - - - - - - - 159
- 64,644 - - 728,845 400 400 400 400 (840,452) -
- - - - - - - - - (163,200) -
- - - - - - - - - - 5,492
- 64,644 - - 728,845 400 127,646 400 400 (1,003,652) 149,457
3,325 - - - - - - - - - 11,073
3,325 - - - - - - - - - 11,073
- - - - - - - - - - 5,033
34,654 15,583 77,340 13,478 (697,174) (400) (127,646) (400) (400) 163,200 2,281,604
- - - - - - - - - - 4,666,003
- - - - - - - - - - 200,000
34,654 15,583 77,340 13,478 (697,174) (400) (127,646) (400) (400) 163,200 7,152,640
37,979$ 80,227$ 77,340$ 13,478$ 31,671$ -$ -$ -$ -$ (840,452)$ 7,313,170$
12/31/2029 12/31/2029 12/31/2022 12/31/2045 12/31/2030
Housing Housing Redevelopment Housing Economic
Development
Total fund balances - Economic Development Authority 7,152,640$
Some of the EDA's property taxes will be collected after year-end,
and, therefore, are reported as deferred inflows of resources
in the governmental funds.11,073
Noncurrent liabilities are not due and payable in the current period and,
therefore, are not reported as liabilities in the fund.
Compensated absences (14,875)
Total OPEB liability (1,881)
Net pension liability (84,996)
Governmental funds do not report long-term amounts related to pensions
and other post-employment benefits.
Deferred outflows of other post-employment benefits resources 193
Deferred outflows of pension resources 22,438
Deferred inflows of other post-employment benefits resources (558)
Deferred inflows of pension resources (25,567)
Total net position - governmental activities 7,058,467$
85
Schedule of Revenues, Expenditures and Changes in Fund Balance
Discretely Presented Component Unit - Economic Development Authority
For the Year Ended December 31, 2023
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 401,807$ -$ -$ -$ -$ -$ -$ -$
Tax increments - - - - 37,749 - 269,641 55,830
Intergovernmental 344,993 - - - - - - -
Charges for services 1,281 - - - - - - -
Investment earnings 177,223 - - - - - - -
Interest on loans 1,963 3,092 - 29,294 - - - -
Other revenues 36,544 - - - - - - -
Total revenues 963,811 3,092 - 29,294 37,749 - 269,641 55,830
Expenditures
Current
Salary and wages 138,697 - - - - - - -
Benefits 48,091 - - - - - - -
Supplies 35 - - - - - - -
Professional services - legal 21,780 - - - - - - -
Professional services - other 158,164 - - - - - 1,000 -
LPV Insurance 3,395 - - - - - - -
Legal and general publications 398 - - - 30 30 30 30
Marketing 5,000 - - - - - - -
Dues and membership 6,796 - - - - - - -
Utilities 868 - - - - - - -
IT services 3,473 - - - - - - -
Travel and conferences 5,120 - - - - - - -
Land adjustment to market 313,629 - - - - - - -
Other expenditures 295,753 - - - - - - -
Excess increments - - - - - - 180,209 -
Interest on intrafund loans - - - - - - - -
PAYG payments to third parties - - - - - - - -
Total expenditures 1,001,199 - - - 30 30 181,239 30
Net change in fund balances (37,388) 3,092 - 29,294 37,719 (30) 88,402 55,800
Fund balance at beginning of year 5,014,657 1,244,165 (45,363) 749,001 - 104,172 430,884 -
Fund balance at end of year 4,977,269$ 1,247,257$ (45,363)$ 778,295$ 37,719$ 104,142$ 519,286$ 55,800$
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
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TIF 29 TIF 30 TIF 34 TIF 40 TIF 41 TIF 42 TIF 43 TIF 45 TIF 46 GAAP Total
Front Porch CMHP Interchange Briggs UMC Headwaters Headwaters Block 52 WiHa Reconciliation EDA
-$ -$ -$ -$ -$ -$ -$ -$ -$ -$ 401,807$
34,684 17,576 - 70,020 65,098 - - - - - 550,598
- - - - - - - - - - 344,993
- - - - - - - - - - 1,281
- - - - - - - - - - 177,223
- - - - - - - - - (31,257) 3,092
- - - - - - - - - - 36,544
34,684 17,576 - 70,020 65,098 - - - - (31,257) 1,515,538
- - - - - - - - - - 138,697
- - - - - - - - - - 48,091
- - - - - - - - - - 35
- - - - - - - - - - 21,780
- - - - 1,468 400 400 400 400 - 162,232
- - - - - - - - - - 3,395
30 30 30 30 224 - - - - - 862
- - - - - - - - - - 5,000
- - - - - - - - - - 6,796
- - - - - - - - - - 868
- - - - - - - - - - 3,473
- - - - - - - - - - 5,120
- - - - - - - - - - 313,629
- - - - - - - - - - 295,753
- - - - - - - - - - 180,209
- 1,963 - - 29,294 - - - - (31,257) -
- - - 63,018 - - - - - - 63,018
30 1,993 30 63,048 30,986 400 400 400 400 (31,257) 1,248,958
34,654 15,583 (30) 6,972 34,112 (400) (400) (400) (400) - 266,580
- - 77,370 6,506 (731,286) - (127,246) - - 163,200 6,886,060
34,654$ 15,583$ 77,340$ 13,478$ (697,174)$ (400)$ (127,646)$ (400)$ (400)$ 163,200$ 7,152,640$
12/31/2029 12/31/2029 12/31/2022 12/31/2045 12/31/2030
Housing Housing Redevelopment Housing Economic
Development
Net change in fund balances - Economic Development Authority 266,580$
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.6,664
Long-term pension activity is not reported in governmental funds.
Pension expense (4,931)
Pension revenue 9
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 governmental funds.
Other post-employment benefit costs 541
Internal service funds are used by management to charge the costs of
various services to individual funds. The net revenues of certain activities
of internal service funds is reported with governmental activities.(1,128)
Change in net position - governmental activities 267,735$
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88
STATISTICAL SECTION
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 Sewer 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, 2023 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 Nine Fiscal Years 114
CITY OF MONTICELLO
Net Position by Component
Last Ten Fiscal Years
(accrual basis of accounting)
2014 2015 2016 2017 2018 2019 2020 2021 2022 2023
Governmental activities
Net investment in
capital assets 48,253,810$ 38,099,568$ 41,077,683$ 41,535,637$ 43,517,983$ 40,008,410$ 40,836,892$ 52,035,838$ 52,824,487$ 63,232,687$
Restricted 10,453,449 12,633,770 10,569,693 11,599,951 9,649,085 8,690,172 5,451,441 4,010,180 3,353,897 4,207,340
Unrestricted 14,792,521 18,144,067 20,824,170 20,899,110 23,422,548 27,133,699 32,661,667 21,443,730 22,630,226 23,799,604
Total governmental
net position 73,499,780$ 68,877,405$ 72,471,546$ 74,034,698$ 76,589,616$ 75,832,281$ 78,950,000$ 77,489,748$ 78,808,610$ 91,239,631$
Business-type activities
Net investment in
capital assets 42,117,264$ 40,722,087$ 41,014,122$ 39,944,797$ 39,250,211$ 42,808,003$ 41,000,179$ 40,089,758$ 38,793,527$ 37,944,447$
Unrestricted 9,121,952 8,163,982 9,052,590 11,905,058 13,261,505 14,855,640 17,649,288 21,628,933 24,979,320 28,274,588
Total business-type
net position 51,239,216$ 48,886,069$ 50,066,712$ 51,849,855$ 52,511,716$ 57,663,643$ 58,649,467$ 61,718,691$ 63,772,847$ 66,219,035$
Primary government
Net investment in
capital assets 90,371,074$ 78,821,655$ 82,091,805$ 81,480,434$ 82,768,194$ 82,816,413$ 81,837,071$ 92,125,596$ 91,618,014$ 101,177,134$
Restricted 10,453,449 12,633,770 10,569,693 11,599,951 9,649,085 8,690,172 5,451,441 4,010,180 3,353,897 4,207,340
Unrestricted 23,914,473 26,308,049 29,876,760 32,804,168 36,684,053 41,989,339 50,310,955 43,072,663 47,609,546 52,074,192
Total primary government
net position 124,738,996$ 117,763,474$ 122,538,258$ 125,884,553$ 129,101,332$ 133,495,924$ 137,599,467$ 139,208,439$ 142,581,457$ 157,458,666$
Note 1: 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 2: In 2021, the city used existing resources to purchase land for future capital construction and redeemed the judgment portion of the 2014A bonds early, accounting for $10,242,136 of the increase in the net
investment in capital assets and decrease in unrestricted net position for governmental activities.
$-
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$100
$150
2014 2015 2016 2017 2018 2019 2020 2021 2022 2023
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Primary Government Net Position
Net investment in
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Restricted net
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Unrestricted net
position
89
CITY OF MONTICELLO
Changes in Net Position
Last Ten Fiscal Years
(accrual basis of accounting)
Expenses 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023
Governmental activities
General government 1,488,243$ 1,447,725$ 1,694,111$ 1,656,666$ 1,614,613$ 1,927,752$ 2,335,614$ 2,604,600$ 2,798,491$ 2,694,603$
Public safety 1,880,193 1,960,009 2,187,363 2,208,971 2,377,661 2,406,748 2,658,246 3,089,673 3,168,835 3,461,914
Public works 5,223,345 5,312,612 5,480,074 5,292,743 5,548,199 5,765,576 4,777,282 4,833,405 5,556,590 5,592,411
Sanitation 517,956 563,477 600,300 614,328 615,586 610,944 681,948 754,132 784,052 817,199
Transit 10,000 40,000 41,250 3,191 18,333 - - - - -
Recreation and culture 2,882,127 3,524,979 3,998,945 3,521,756 3,460,887 3,636,958 3,289,716 3,190,466 3,874,315 4,962,239
Economic development 1,084,620 1,547,875 756,620 488,380 1,206,067 872,984 1,914,825 - - -
Interest and fiscal charges 649,854 735,753 565,774 514,558 617,344 752,595 756,546 660,352 480,903 448,258
Total governmental activities 13,736,338 15,132,430 15,324,437 14,300,593 15,458,690 15,973,557 16,414,177 15,132,628 16,663,186 17,976,624
Business-type activities
Water 1,084,882 1,102,610 1,168,473 1,157,506 1,235,055 1,216,446 1,212,656 1,265,578 1,348,348 1,449,050
Sewer 2,762,357 2,661,990 2,618,887 2,708,053 2,932,413 2,889,438 2,960,153 3,048,580 3,232,878 3,215,564
Stormwater - - - - - - 658,771 732,851 797,995 650,470
Liquor 4,569,673 4,768,218 4,873,033 5,104,937 5,394,968 5,577,481 6,395,558 6,117,772 6,320,611 6,315,729
Fiber optics 2,919,170 2,536,461 2,483,262 2,252,287 2,276,015 1,990,052 2,063,712 2,081,312 2,005,196 1,934,753
Deputy registrar 300,236 313,968 345,492 390,658 421,662 458,695 538,625 596,933 785,822 687,325
Total business-type activities 11,636,318 11,383,247 11,489,147 11,613,441 12,260,113 12,132,112 13,829,475 13,843,026 14,490,850 14,252,891
Total primary government expenses 25,372,656$ 26,515,677$ 26,813,584$ 25,914,034$ 27,718,803$ 28,105,669$ 30,243,652$ 28,975,654$ 31,154,036$ 32,229,515$
Program Revenues
Governmental activities
Charges for services
General government 180,145$ 214,087$ 274,309$ 239,460$ 207,802$ 232,336$ 523,919$ 837,564$ 989,086$ 894,194$
Public safety 164,616 320,158 894,311 851,307 780,236 921,916 799,227 1,305,778 956,541 1,197,068
Public works 371,671 521,697 527,425 283,241 217,675 373,581 156,657 94,452 147,269 153,584
Sanitation 48,385 104,786 89,956 80,774 169,337 381,328 522,088 622,549 750,623 861,178
Recreation and culture 1,331,581 1,488,197 1,437,659 1,493,651 1,630,915 1,602,473 652,729 948,130 1,473,281 2,197,615
Economic development - 14,653 301,232 13,846 2,832 14,149 10,915 10,597 14,032 8,067
Operating grants and contributions 295,828 355,041 389,005 429,697 428,443 431,004 463,335 1,539,082 1,192,748 1,640,385
Capital grants and contributions 1,774,628 2,667,710 3,297,265 1,996,441 2,044,698 1,024,891 1,289,990 3,314,487 1,529,488 5,926,525
Total governmental activities
program revenues 4,166,854 5,686,329 7,211,162 5,388,417 5,481,938 4,981,678 4,418,860 8,672,639 7,053,068 12,878,616
Business-type activities
Charges for services
Water 1,117,226 1,126,718 1,172,258 1,415,441 1,432,194 1,300,191 1,541,694 1,782,204 1,769,524 2,097,451
Sewer 2,081,660 2,083,122 2,223,252 2,472,774 2,581,833 2,443,856 2,559,354 2,686,445 2,925,917 3,014,189
Stormwater - - - - - 61,757 241,873 356,458 529,146 622,664
Liquor 5,166,066 5,493,925 5,450,630 5,755,166 6,090,981 6,377,457 7,405,960 7,105,934 7,174,059 7,043,302
Fiber optics 1,761,978 1,642,403 1,739,566 1,757,134 1,736,243 1,795,435 1,851,845 1,947,738 2,195,092 1,935,217
Deputy registrar 497,798 535,931 562,891 594,777 694,263 953,855 801,502 942,674 895,494 952,036
Operating grants and contributions - - - - - - - 95,601 297,608 474,925
Capital grants and contributions 488,628 1,454,980 2,000,456 699,901 925,195 1,646,123 1,488,339 1,842,947 1,522,921 2,915,922
Total business-type activities
program revenues 11,113,356 12,337,079 13,149,053 12,695,193 13,460,709 14,578,674 15,890,567 16,760,001 17,309,761 19,055,706
Total primary government
program revenues 15,280,210$ 18,023,408$ 20,360,215$ 18,083,610$ 18,942,647$ 19,560,352$ 20,309,427$ 25,432,640$ 24,362,829$ 31,934,322$
(continued)
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Changes in Net Position
Last Ten Fiscal Years (continued)
(accrual basis of accounting)
2014 2015 2016 2017 2018 2019 2020 2021 2022 2023
Net (expense)/revenue
Governmental activities (9,569,484)$ (9,446,101)$ (8,113,275)$ (8,912,176)$ (9,976,752)$ (10,991,879)$ (11,995,317)$ (6,459,989)$ (9,610,118)$ (5,098,008)$
Business-type activities (522,962) 953,832 1,659,906 1,081,752 1,200,596 2,446,562 2,061,092 2,916,975 2,818,911 4,802,815
Total primary government net expense (10,092,446)$ (8,492,269)$ (6,453,369)$ (7,830,424)$ (8,776,156)$ (8,545,317)$ (9,934,225)$ (3,543,014)$ (6,791,207)$ (295,193)$
General Revenues and Other
Changes in Net Position
Governmental activities
Taxes
Property taxes 8,393,374$ 8,683,585$ 9,270,592$ 9,560,482$ 9,972,166$ 10,375,714$ 10,874,313$ 11,180,595$ 11,456,764$ 12,163,726$
Tax increment 826,363 727,617 668,352 648,031 638,278 679,925 707,824 - - -
Franchise taxes 357,409 333,484 412,217 436,248 386,622 432,934 418,030 383,045 388,074 400,591
Unrestricted grants and
contributions 27,502 - - - - - 886,544 - - -
Investment earnings 784,347 278,465 375,614 379,107 364,364 969,216 666,325 (168,603) (915,858) 1,316,451
Other 217,643 30,473 11,180 - - - - - - -
Gain on sale of capital assets - - - 1,725 15,000 - - 271,840 - 33,950
Transfers (3,411,500) 2,301,045 969,461 (550,265) 1,000,000 (2,223,245) 1,560,000 (200,000) - 3,614,311
Total governmental activities 7,195,138 12,354,669 11,707,416 10,475,328 12,376,430 10,234,544 15,113,036 11,466,877 10,928,980 17,529,029
Business-type activities
Franchise taxes - - - - - - - 53,942 53,000 20,587
Unrestricted grants and
contributions - - - - - - 151,794 - - -
Investment earnings 399,757 108,191 128,080 151,126 162,003 482,120 332,938 (101,693) (817,755) 1,237,097
Miscellaneous - 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 3,411,500 (2,301,045) (969,461) 550,265 (1,000,000) 2,223,245 (1,560,000) 200,000 – (3,614,311)
Total business-type activities 24,801,708 (7,616,244) (479,263) 701,391 (458,751) 2,705,365 (1,075,268) 152,249 (764,755) (2,356,627)
Total primary government 31,996,846$ 4,738,425$ 11,228,153$ 11,176,719$ 11,917,679$ 12,939,909$ 14,037,768$ 11,619,126$ 10,164,225$ 15,172,402$
Changes in Net Position
Governmental activities (2,374,346)$ 2,908,568$ 3,594,141$ 1,563,152$ 2,399,678$ (757,335)$ 3,117,719$ 5,006,888$ 1,318,862$ 12,431,021$
Business-type activities 24,278,746 (6,662,412) 1,180,643 1,783,143 741,845 5,151,927 985,824 3,069,224 2,054,156 2,446,188
Total primary government 21,904,400$ (3,753,844)$ 4,774,784$ 3,346,295$ 3,141,523$ 4,394,592$ 4,103,543$ 8,076,112$ 3,373,018$ 14,877,209$
Note 1: 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 2: 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.
Note 3: The city received a number of intergovernmental grants related to capital improvement projects in 2023, which significantly increased the city's change in net position.
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
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
2021 11,180,595 - 383,045 11,563,640
2022 11,456,764 - 388,074 11,844,838
2023 12,163,726 - 400,591 12,564,317
Change
2014-2023 44.9%-100.0%12.1%31.2%
Note 1: The Economic Development Authority Fund was reclassified from a blended component unit to a discretely presented
component unit in 2021. Tax increments are no longer reported in primary government. Prior years were not restated.
Source: Finance Department
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Property Tax
Tax Increment
Franchise Tax
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CITY OF MONTICELLO
Fund Balances of Governmental Funds
Last Ten Fiscal Years
(modified accrual basis of accounting)
2014 2015 2016 2017 2018 2019 2020 2021 2022 2023
General Fund
Nonspendable 126,327$ 113,302$ 134,245$ 110,869$ 124,650$ 135,139$ 145,603$ 142,846$ 113,530$ 122,287$
Restricted - - - - - - - - - 639,732
Unassigned 4,204,731 4,873,494 6,142,475 6,918,224 6,984,828 6,542,111 6,494,632 6,481,936 6,929,266 7,416,654
Total general fund 4,331,058$ 4,986,796$ 6,276,720$ 7,029,093$ 7,109,478$ 6,677,250$ 6,640,235$ 6,624,782$ 7,042,796$ 8,178,673$
All other governmental funds
Nonspendable 1,815,087$ 4,259,743$ 3,690,330$ 23,488$ 47,614$ 72,028$ 27,600$ 29,474$ 26,450$ 30,255$
Restricted 10,453,449 8,619,905 6,987,234 7,924,461 5,867,997 7,567,522 5,008,177 2,948,572 2,090,545 1,973,090
Assigned 7,321,744 11,109,806 13,320,718 16,910,080 17,145,463 21,227,605 24,358,352 13,684,148 13,757,727 12,631,948
Total all other
governmental funds 19,590,280$ 23,989,454$ 23,998,282$ 24,858,029$ 23,061,074$ 28,867,155$ 29,394,129$ 16,662,194$ 15,874,722$ 14,635,293$
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 Economic Development Authority Fund was reclassified from a blended component unit to a discretely presented component unit in 2021. Tax increments are no longer reported in primary government. Prior
years were not restated.
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CITY OF MONTICELLO
Changes in Fund Balances of Governmental Funds
Last Ten Fiscal Years
(modified accrual basis of accounting)
2014 2015 2016 2017 2018 2019 2020 2021 2022 2023
Revenues
Property taxes 8,407,627$ 8,638,401$ 9,295,983$ 9,593,445$ 9,967,550$ 10,375,468$ 10,860,311$ 11,196,762$ 11,435,128$ 12,120,024$
Tax increments 826,363 727,617 668,352 648,031 638,278 679,925 707,824 - - -
Franchise taxes 357,409 333,484 412,217 436,248 386,622 432,934 418,030 383,045 388,074 400,591
Special assessments 1,912,932 3,318,901 984,390 946,669 700,190 712,681 633,016 1,699,141 718,773 1,185,631
Licenses and permits 378,810 461,049 668,602 600,933 504,464 603,925 521,369 804,889 613,014 930,901
Intergovernmental 732,366 1,520,239 2,041,362 1,340,094 911,477 896,638 1,656,228 3,912,067 1,741,507 2,226,991
Charges for services 1,722,974 2,063,520 2,222,475 1,909,357 2,098,362 2,297,568 1,474,527 2,099,582 2,646,202 2,836,161
Fines and forfeitures 1,900 42,474 30,656 36,702 45,350 40,054 31,852 49,566 36,808 52,413
Investment earnings 738,956 261,856 357,112 364,786 351,620 930,128 641,446 (164,300) (845,528) 1,234,053
Interest on loans - - - - - 10,929 8,635 4,392 3,873 3,082
Other revenues 413,113 475,170 589,394 335,530 302,469 436,264 521,109 1,046,419 1,204,820 3,267,273
Total revenues 15,492,450 17,842,711 17,270,543 16,211,795 15,906,382 17,416,514 17,474,347 21,031,563 17,942,671 24,257,120
Expenditures
General government 1,450,930 1,465,458 1,489,892 1,617,680 1,656,557 1,777,352 2,170,661 2,639,420 2,684,854 2,696,531
Public safety 1,845,073 1,972,986 2,036,777 2,178,728 2,354,453 2,449,765 2,743,954 2,874,183 2,989,883 3,263,979
Public works 1,793,162 1,734,562 1,941,750 2,009,481 2,079,305 2,393,638 1,899,315 2,123,898 2,406,209 2,609,129
Sanitation 517,956 563,477 600,300 614,328 615,586 610,944 681,948 754,132 784,052 817,199
Transit 10,000 40,000 41,250 3,191 18,333 - - - - -
Recreation and culture 2,386,832 2,622,991 2,756,372 2,940,313 3,034,496 3,137,153 2,614,095 2,708,575 3,483,340 4,097,541
Economic development 1,084,620 1,237,107 530,746 486,706 1,210,053 871,950 1,917,973 - - -
Capital outlay 2,220,883 2,238,365 6,235,029 5,430,272 9,708,481 7,941,452 4,910,889 7,405,428 2,999,832 12,304,059
Debt service
Principal 5,411,000 5,028,000 5,681,653 3,921,000 2,285,000 2,855,000 3,385,000 6,555,000 2,315,000 2,160,000
Interest and fiscal charges 658,983 570,753 529,116 470,508 522,220 634,241 756,908 697,793 498,959 446,184
Bond issuance costs - 71,358 107,050 93,300 94,350 138,350 53,475 - - -
Total expenditures 17,379,439 17,545,057 21,949,935 19,765,507 23,578,834 22,809,845 21,134,218 25,758,429 18,162,129 28,394,622
Excess of revenues
over (under) expenditures (1,886,989) 297,654 (4,679,392) (3,553,712) (7,672,452) (5,393,331) (3,659,871) (4,726,866) (219,458) (4,137,502)
Other financing sources (uses)
Long-term debt issued 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 (12,374) 46,898 97,503 78,814 40,882 131,662 101,280 - - -
Sale of capital assets - 30,473 11,180 1,725 15,000 29,340 333,550 271,840 - 33,950
Transfers in 4,914,385 4,261,817 2,192,636 1,029,628 2,082,845 5,928,040 2,760,000 6,977,964 108,801 4,750,000
Transfers out (8,325,885) (2,186,930) (1,223,175) (944,335) (1,182,845) (3,321,858) (1,200,000) (8,751,621) (258,801) (750,000)
Total other financing sources (uses)2,656,126 4,757,258 5,978,144 5,165,832 5,955,882 10,767,184 4,149,830 (1,501,817) (150,000) 4,033,950
Net change in fund balances 769,137$ 5,054,912$ 1,298,752$ 1,612,120$ (1,716,570)$ 5,373,853$ 489,959$ (6,228,683)$ (369,458)$ (103,552)$
Debt service as percentage
of noncapital expenditures 40.0% 35.1% 38.0% 30.4% 20.1% 26.4% 24.9% 39.2% 18.2% 16.1%
Note 1: The city redeemed the judgment portion of the 2014A bonds early in 2021.
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
2014 8,407,627$ 826,363$ 357,409$ 9,272,270$
2015 8,638,401 727,617 333,484 9,591,399
2016 9,295,983 668,352 412,217 9,699,502
2017 9,593,445 648,031 436,248 10,376,552
2018 9,967,550 638,278 386,622 10,677,724
2019 10,375,468 679,925 432,934 10,992,450
2020 10,860,311 707,824 418,030 11,488,327
2021 11,196,762 - 383,045 11,986,165
2022 11,435,128 - 388,074 11,579,807
2023 12,120,024 - 400,591 12,520,615
Change
2014-2023 44.2%-100.0%12.1%35.0%
Note 1: The Economic Development Authority Fund was reclassified from a blended component unit to a discretely presented
component unit in 2021. Tax increments are no longer reported in primary government. Prior years were not restated.
Source: Finance Department
$-
$2
$4
$6
$8
$10
$12
$14
2014 2015 2016 2017 2018 2019 2020 2021 2022 2023
Mi
l
l
i
o
n
s
Tax Revenues by Source
Property Tax
Tax Increment
Franchise Tax
95
CITY OF MONTICELLO
Tax Capacity Value and Estimated Market Value of Taxable Property
Last Ten Fiscal Years
Total Net Tax
Taxable Net Capacity as a
Fiscal Residential % of Commercial % of Personal % of Ag/Misc % of Tax Capacity % of Total Direct Total Percentage of
Year Property Total Property Total Property Total Property Total Value Total Tax Rate Market Value Market Value
2014 5,408,138$ 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%
2021 10,298,432 32.4% 21,153,822 66.5% 188,572 0.6% 187,144 0.6% 31,827,970 100.0% 35.659 2,173,573,500 1.5%
2022 12,798,435 36.3% 22,043,296 62.5% 213,032 0.6% 223,509 0.6% 35,278,272 100.0% 36.536 2,466,129,200 1.4%
2023 14,875,755 39.0% 22,849,158 59.9% 187,532 0.5% 256,634 0.7% 38,169,079 100.0% 34.991 2,702,176,000 1.4%
Note 1: The fiscal year is for the values in the year levied (for taxes collectible in the following year).
Note 2: Tax exempt property values are not included in total taxable net tax capacity value.
Source: Wright County Certificate of Taxes and Taxable Properties.
Real Property
$-
$5
$10
$15
$20
$25
$30
$35
$40
2014 2015 2016 2017 2018 2019 2020 2021 2022 2023
Mi
l
l
i
o
n
s
Total Taxable Net Tax Capacity Value
(Excludes Personal and Ag/Misc Property)
Residential
Commercial
96
CITY OF MONTICELLO
Property Tax Rates - All Direct and Overlapping Governments
Last Ten Fiscal Years
Monticello Total (1)
City Wright School Special Direct and
Year of Monticello County District #882 Districts Overlapping
2014 44.71 43.45 28.27 -116.43
2015 35.74 40.59 22.88 -99.21
2016 34.47 39.97 20.86 1.08 96.38
2017 33.17 39.60 16.24 1.02 90.03
2018 32.33 39.95 15.62 1.09 89.00
2019 34.26 44.27 19.97 1.20 99.70
2020 34.97 44.42 15.87 1.18 96.44
2021 35.66 43.72 15.39 1.18 95.95
2022 36.54 43.75 15.46 1.25 97.00
2023 34.99 37.85 12.87 1.17 86.88
Note 1:
Source: Wright County
Overlapping Taxing Districts
Information reflects total tax rates levied by each entity. Tax rates are expressed in terms of “net tax capacity.” A
property’s tax capacity is determined by multiplying its taxable market value by a state determined class rate. Class
rates vary by property type and change periodically based on state legislation. Components of the direct rate are not
readily available.
0
5
10
15
20
25
30
35
40
45
50
2014 2015 2016 2017 2018 2019 2020 2021 2022 2023
Ra
t
e
%
Property Tax Rates
For the three highest taxing authorities
Wright
County
School
District
#882
City of
Monticello
97
CITY OF MONTICELLO
Property Tax Levies and Collections
Last Ten Fiscal Years
PROPERTY TAXES
Net Tax Collections in Abatements
Fiscal Levy for % of Subsequent % of and % of
Year Fiscal Year Amount Net Levy Years Amount Net Levy Adjustments Amount Net Levy
2014 8,151,086$ 8,109,373$ 99.5% 34,563$ 8,143,936$ 99.9% (7,013)$ 137$ 0.0%
2015 8,535,565 8,498,745 99.6% 24,039 8,522,784 99.9% (12,524) 257 0.0%
2016 9,205,700 9,177,787 99.7% 24,483 9,202,270 100.0%(3,430) - 0.0%
2017 9,430,000 9,416,303 99.9% 12,151 9,428,454 100.0%(1,546) - 0.0%
2018 9,870,000 9,850,163 99.8% 11,274 9,861,437 99.9%(8,563) - 0.0%
2019 10,310,000 10,289,339 99.8% 26,261 10,315,600 100.1%5,600 - 0.0%
2020 10,800,000 10,770,454 99.7%(1,534) 10,768,920 99.7% (41,156) (10,076) -0.1%
2021 11,063,700 11,053,758 99.9%8,961 11,062,719 100.0%3,297 4,278 0.0%
2022 11,353,000 11,314,942 99.7%(5,584) 11,309,358 99.6% (36,482) 7,160 0.1%
2023 12,050,000 12,025,700 99.8%- 12,025,700 99.8% 71,497 95,797 0.8%
Source: Wright County
Collected within the Total Collections
Year of the Net Levy to Date Total Uncollected
98
CITY OF MONTICELLO
Principal Property Taxpayers
Current Year and Nine Years Ago
Percentage Percentage
Taxable Total Taxable Total
(1)Net Tax Net Tax Net Tax Net Tax
Market Capacity Capacity Market Capacity Capacity
Taxpayer Value Value Rank Value Value Value Rank Value
Xcel Energy (Northern States) 658,505,400$ 13,154,350$ 1 34.5% 464,619,100$ 9,285,841$ 1 48.8%
IRET Properties 41,824,300 522,804 2 1.4%
Deephaven Development LLC 30,548,200 381,872 3 1.0%
Mills Fleet Farm (Venturian Holdings) 14,905,800 295,116 4 0.8%
Target Corporation 11,767,800 234,606 5 0.6% 10,120,400 201,658 3 1.1%
Clear Creek Land Company, LLC 11,589,500 230,290 6 0.6%
Walmart Real Estate Bus Trust 11,402,200 227,294 7 0.6% 12,542,500 250,100 2 1.3%
Monticello Sr Housing Own LLC 14,028,800 175,360 8 0.5%
UMC Real Estate LLC 8,799,000 174,480 9 0.5%
CentraCare (Monti-Big Lake Comm Hosp) 8,362,800 167,256 10 0.4% 7,544,100 150,882 4 0.8%
Home Depot USA, Inc.7,000,000 139,250 5 0.7%
Spirit Master Funding (Muller Theatres)5,511,400 109,097 6 0.6%
AX TC Retail, LP 5,154,900 101,598 7 0.5%
BBF Properties 3,977,300 78,796 8 0.4%
Tapper's Holdings, LLC 3,956,800 77,636 9 0.4%
Minnegasco Inc 3,874,500 77,490 10 0.4%
811,733,800$ 15,563,428$ 40.8% 524,301,000$ 10,472,348$ 55.1%
(1) The market value and taxable net tax capacity value is for taxes levied in 2023, which are payable in 2024.
Source: Wright County Certificate of Taxes and Taxable Properties and 2014 City of Monticello Financial Report
2023 2014
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
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%
2021 4 6,112,240 95 21,993,822 28,106,062 2,736,992 14.7%
2022 5 23,075,719 35 9,763,675 32,839,394 2,828,229 3.3%
2023 7 21,060,426 46 38,596,935 59,657,361 2,737,682 -3.2%
(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
$30,000,000
$35,000,000
$40,000,000
2014 2015 2016 2017 2018 2019 2020 2021 2022 2023
New Residential and Commercial Construction
Residential
Commercial
100
CITY OF MONTICELLO
Water Sold by Customer Type
Last Ten Fiscal Years
(gallons)
Total
% of % of % of % of Water % of
Year Residential Total Commercial Total Industrial Total Government Total Sold Total
2014 328,835,772 68.2%79,370,922 16.5%38,308,124 7.9%35,566,000 7.4%482,080,818 100.0%
2015 325,188,041 68.1%76,283,322 16.0%38,897,216 8.1%37,005,919 7.8%477,374,498 100.0%
2016 329,068,876 67.7%77,795,226 16.0%42,407,860 8.7%36,647,583 7.5%485,919,545 100.0%
2017 371,596,967 67.7%93,770,712 17.1%43,220,312 7.9%40,409,649 7.4%548,997,640 100.0%
2018 352,322,681 67.3%89,911,481 17.2%43,067,083 8.2%38,128,401 7.3%523,429,646 100.0%
2019 307,411,101 64.0%93,783,767 19.5%44,120,527 9.2%35,187,913 7.3%480,503,308 100.0%
2020 392,258,038 70.1%92,058,431 16.5%39,630,515 7.1%35,351,965 6.3%559,298,949 100.0%
2021 442,964,466 71.6%97,483,202 15.8%39,768,999 6.4%38,252,736 6.2%618,469,403 100.0%
2022 409,192,333 69.5%96,391,875 16.4%45,202,637 7.7%37,749,850 6.4%588,536,695 100.0%
2023 435,136,857 69.2%106,026,233 16.9%46,522,096 7.4%40,900,149 6.5%628,585,335 100.0%
Source: City of Monticello utility billing department
0
100
200
300
400
500
600
700
2014 2015 2016 2017 2018 2019 2020 2021 2022 2023
Mi
l
l
i
o
n
s
Water Sold by Customer Type (gallons)
Government
Industrial
Commercial
Residential
101
CITY OF MONTICELLO
Water and Sewer Utility Rates
Last Ten Fiscal Years
2014 2015 2016 2017 2018 2019 2020 2021 2022 2023
Water Fund
Residential & Commercial
Base Rate - First 500 CF 17.00$ 17.85$ 18.85$ -$ -$ -$ -$ -$ -$ -$
501 - 4000 per 100 CF 1.13 1.19 1.22 - - - - - - -
4,001 - 13,369 per 100 CF 1.31 1.38 1.41 - - - - - - -
Over 13,369 per 100 CF 1.43 1.50 1.50 - - - - - - -
Residential
Base Rate - First 1,000 gal - - - 6.45 6.95 7.10 7.10 7.81 8.04 8.68
1,001 - 6,500 per 1,000 gal - - - 1.66 1.70 1.74 1.74 1.83 1.88 2.03
6,501 - 10,000 per 1,000 gal - - - 1.66 1.70 1.74 1.74 1.83 1.88 2.35
10,001 - 11,500 per 1,000 gal - - - 1.92 1.97 2.02 2.02 2.12 2.18 2.35
11,501 - 16,500 per 1,000 gal - - - 1.92 1.97 2.02 2.02 2.12 2.18 2.58
16,501 - 33,000 per 1,000 gal - - - 1.92 1.97 2.02 2.02 2.12 2.18 2.80
Over 33,000 per 1,000 gal - - - 2.09 2.15 2.21 2.21 2.32 2.39 3.00
State Connection Fee - - - - - - 0.81 0.81 0.81 0.81
Commercial
Base Rate - First 1,000 gal - - - 6.45 6.95 7.10 7.10 7.81 8.04 8.68
1,001 - 6,500 per 1,000 gal - - - 1.66 1.70 1.74 1.74 1.83 1.88 2.03
6,501 - 10,000 per 1,000 gal - - - 1.66 1.70 1.74 1.74 1.83 1.88 2.35
10,001 - 11,500 per 1,000 gal - - - 1.92 1.97 2.02 2.02 2.12 2.18 2.35
11,501 - 16,500 per 1,000 gal - - - 1.92 1.97 2.02 2.02 2.12 2.18 2.35
16,501 - 33,000 per 1,000 gal - - - 1.92 1.97 2.02 2.02 2.12 2.18 2.35
Over 33,000 per 1,000 gal - - - 2.09 2.15 2.21 2.21 2.32 2.39 2.58
State Connection Fee - - - - - - 0.81 0.81 0.81 0.81
Sewer Fund
Residential & Commercial
Base Rate - First 500 CF 20.65 21.69 22.69 - - - - - - -
Over 500 per 100 CF 3.70 3.89 3.97 - - - - - - -
Residential & Commercial
Base Rate - First 1,000 gal - - - 8.05 8.75 9.00 9.18 10.10 10.40 10.61
Over 1,000 per 1,000 gal - - - 5.48 5.63 5.77 5.89 6.19 6.38 6.51
Note 1: The City began billing monthly in 2017 and transitioned from billing per cubic foot (CF) to billing per gallon (gal).
Note 2: Usage levels per tier were changed in 2023.
102
CITY OF MONTICELLO
Ratios of Outstanding Debt by Type
Last Ten Fiscal Years
2014 2015 2016 2017 2018 2019 2020 2021 2022 2023
Governmental activities
General obligation bonds
Special assessment 12,203,653$ 11,689,653$ 12,730,000$ 12,695,000$ 10,925,000$ 9,200,000$ 9,290,000$ 8,050,000$ 6,780,000$ 5,680,000$
Other 10,487,000 9,563,000 7,686,000 5,785,000 5,375,000 11,600,000 10,770,000 5,960,000 5,435,000 4,905,000
Tax abatement - - - 2,960,000 7,800,000 8,390,000 7,845,000 7,280,000 6,700,000 6,110,000
Net premium (discount)67,350 190,196 159,266 128,336 105,777 69,187 44,028 18,869 - -
Total GO bonds 22,758,003 21,442,849 20,575,266 21,568,336 24,205,777 29,259,187 27,949,028 21,308,869 18,915,000 16,695,000
Certificates of indebtedness 385,000 325,000 265,000 200,000 135,000 70,000 - - - -
Total general obligation debt 23,143,003 21,767,849 20,840,266 21,768,336 24,340,777 29,329,187 27,949,028 21,308,869 18,915,000 16,695,000
Non-general obligation bonds
Revenue bonds 985,000 - - - - - - - - -
Total governmental activites 24,128,003$ 21,767,849$ 20,840,266$ 21,768,336$ 24,340,777$ 29,329,187$ 27,949,028$ 21,308,869$ 18,915,000$ 16,695,000$
Business-type activities
General obligation
revenue bonds 3,206,347$ 2,930,347$ 2,460,000$ 2,280,000$ 2,095,000$ 1,910,000$ 1,720,000$ 1,525,000$ 1,325,000$ 1,120,000$
Non-general obligation
PFA notes - 615,268 1,927,850 1,998,402 1,903,000 1,800,000 1,696,000 1,591,000 1,485,000 1,378,000
Net premium (discount)31,941 30,339 27,354 23,495 21,510 19,524 17,539 15,553 - -
Total business-type activities 3,238,288$ 3,575,954$ 4,415,204$ 4,301,897$ 4,019,510$ 3,729,524$ 3,433,539$ 3,131,553$ 2,810,000$ 2,498,000$
Total primary government 27,366,291$ 25,343,803$ 25,255,470$ 26,070,233$ 28,360,287$ 33,058,711$ 31,382,567$ 24,440,422$ 21,725,000$ 19,193,000$
% of personal income (1)4.8%4.3%4.1%4.1%4.2%4.6%4.0%2.8%2.4% Not Available
Per capita debt (1)2,106$ 1,931$ 1,899$ 1,944$ 2,093$ 2,399$ 2,260$ 1,691$ 1,486$ 1,272$
(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)
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
2021 22,849,422 2,185,818 20,663,604 0.95%1,430
2022 20,240,000 2,237,657 18,002,343 0.73%1,231
2023 17,815,000 2,322,454 15,492,546 0.57%1,027
(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
2014 2015 2016 2017 2018 2019 2020 2021 2022 2023
45,407,112$ 51,363,756$ 54,853,128$ 58,860,603$ 59,224,632$ 61,629,411$ 64,061,142$ 65,207,205$ 73,983,876$ 81,065,280$
Total net debt
applicable to
debt limit 10,872,000 9,888,000 7,951,000 8,945,000 13,310,000 20,060,000 14,390,000 9,215,000 8,315,000 7,400,000
Legal debt margin 34,535,112$ 41,475,756$ 46,902,128$ 49,915,603$ 45,914,632$ 41,569,411$ 49,671,142$ 55,992,205$ 65,668,876$ 73,665,280$
Total net debt
applicable to
debt limit as a
percentage
of debt limit 23.9% 19.3% 14.5% 15.2% 22.5% 32.5% 22.5% 14.1% 11.2% 9.1%
Market value for fiscal year 2023 (payable 2024) 2,702,176,000$
Debt limit (3% of market value)81,065,280$
Debt applicable to limit
General obligation bonds 17,815,000$
Less amounts for general obligation bonds
not subject to debt limit (10,415,000)
Total net debt applicable to limit 7,400,000
Legal debt margin 73,665,280$
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
Fiscal Year
Legal debt limit
105
CITY OF MONTICELLO
Computation of Direct and Overlapping Debt
As of December 31, 2023
Estimated
Gross Percentage Amount
Bonded Debt Applicable Applicable to
Jurisdiction Outstanding to City (1)City
DIRECT DEBT:
City of Monticello 16,695,000$ 100.0% 16,695,000$
OVERLAPPING DEBT:
I.S.D. 882 40,890,000 73.5% 30,054,150
Wright County 126,585,000 13.5% 17,088,975
Total Overlapping Debt 47,143,125
Total direct and overlapping debt 63,838,125$
(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
Sewer Fund:
Net Revenue
Gross Operating Available for
Year (3) Revenues (1) Expenses(2) Debt Service Principal Interest Total Coverage
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%
2021 2,686,445 1,777,133 909,312 300,000 67,126 367,126 247.7%
2022 2,925,917 1,980,086 945,831 306,000 61,817 367,817 257.1%
2023 3,014,189 1,965,772 1,048,417 312,000 56,041 368,041 284.9%
(1) Total revenues does not include investment earnings.
(2) Total operating expenses excluding depreciation.
Source: Finance Department
Debt Service Requirements (3)
107
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)
2014 12,993 4.2%4,010 568,235,862$ 43,734$
2015 13,125 4.0%4,115 593,538,750 45,222
2016 13,299 4.3%4,027 616,887,414 46,386
2017 13,409 3.6%4,075 641,660,877 47,853
2018 13,553 3.6%4,158 677,785,530 50,010
2019 13,782 3.7%4,053 715,010,160 51,880
2020 13,886 4.7%4,099 787,377,858 56,703
2021 14,455 2.8%4,113 872,966,360 60,392
2022 14,619 3.3%4,206 914,550,021 62,559
2023 15,087 2.8%4,237 Not Yet Available Not Yet Available
Notes/sources:
(1)
(2)
(3)
(4)
(5)
Minnesota State Demographic Center population estimates.
ISD No. 882 enrollment information was obtained from the District's Financial Report for the year ended June 30, 2022.
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.
Annual average unemployment rate for Wright County provided by the Minnesota Department of Employment & Economic
Development.
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)
ISD No. 882 (Monticello)684 1 8.3%544 2 5.3%
Xcel Energy (Northern States)650 2 7.9%2,000 1 19.6%
CentraCare Medical Center (New River)577 3 7.0%500 3 4.9%
Cargill Kitchen Solutions (Sunny Fresh)425 4 5.1%350 4 3.4%
Target 307 5 3.7%
Wal-Mart Supercenter 225 6 2.7%325 5 3.2%
Ultra Machine Corporation 215 7 2.6%173 7 1.7%
City of Monticello 176 8 2.1%150 9 1.5%
Home Depot 157 9 1.9%160 8 1.6%
WSI Industries, Inc.120 10 1.5%
Cub Foods 180 6 1.8%
Hoglund Bus/Hoglund Truck 88 10 0.9%
2,852 40.4%4,470 43.8%
Source: City of Monticello Employment Survey and 2014 City of Monticello ACFR.
2023 2014
(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.
109
CITY OF MONTICELLO
City Government Employees by Function/Program
Last Ten Fiscal Years
2014 2015 2016 2017 2018 2019 2020 2021 2022 2023
Employees by function
General Fund
General government 12.50 12.50 13.50 11.50 11.50 11.50 11.75 9.50 10.70 10.05
Public safety
Building 3.00 4.00 4.00 4.00 3.00 3.00 3.00 3.00 4.20 5.20
Fire 3.80 3.80 3.80 3.80 3.80 3.80 3.80 4.80 4.90 3.90
Public works
Engineering 1.00 1.00 1.00 1.00 2.00 2.00 2.00 3.25 2.65 2.65
Maintenance(1)18.50 18.50 18.50 10.50 9.50 9.60 8.80 7.80 8.00 8.40
Recreation and culture
Parks (1)5.00 5.00 5.00 13.00 10.00 8.90 9.90 9.60 10.30 10.10
Community development 1.00 1.00 1.00 1.00 1.00 1.00 1.00 1.00 1.00 1.00
Special Revenue Funds
Recreation and culture
Community center - FT 7.50 7.50 7.50 7.50 7.50 7.50 7.50 6.00 6.00 6.00
Community center - PT(2)36.50 36.50 36.50 38.10 37.30 35.00 14.70 7.40 12.05 14.75
Enterprise Funds
Utilities 4.00 5.00 5.00 6.00 6.00 6.50 6.50 8.65 8.75 8.90
Deputy registrar 5.00 5.00 5.00 7.50 7.00 7.60 6.80 7.50 8.35 7.55
Liquor store 11.50 11.50 11.50 12.40 13.10 14.20 11.90 10.20 10.95 11.65
FiberNet (3)8.50 8.50 - - - - - - - -
Internal Services Funds
Facilities maintenance - - - - - - - 0.50 1.10 1.10
Information technology - - - - - - - 0.40 1.00 1.00
Discrete Component Unit Fund
Economic Development - - 1.00 1.00 1.00 1.00 1.20 1.20 1.50 1.60
Total 117.80 119.80 113.30 117.30 112.70 111.60 88.85 80.80 91.45 93.85
Employees by fund type
General Fund 44.80 45.80 46.80 44.80 40.80 39.80 40.25 38.95 41.75 41.30
Special Revenue Funds 44.00 44.00 44.00 45.60 44.80 42.50 22.20 13.40 18.05 20.75
Enterprise Funds 29.00 30.00 21.50 25.90 26.10 28.30 25.20 27.25 30.15 30.20
Discrete Component Unit Fund - - 1.00 1.00 1.00 1.00 1.20 1.20 1.50 1.60
117.80 119.80 113.30 117.30 112.70 111.60 88.85 80.80 91.45 93.85
FT = Full-time PT = Part-time
(1) Includes seasonal employees
(2) Reduction in 2020 was due to COVID-19 pandemic.
(3) 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
2014 2015 2016 2017 2018 2019 2020 2021 2022 2023
Function
Fire
Calls for service 286 262 270 312 269 294 272 373 384 389
Public works
Salt (tons)385 534 525 461 585 752 730 700 600 620
Sand (tons)600 285 300 397 329 432 400 - 24 29
Crack sealant (pounds)23,282 29,580 49,039 46,721 46,868 47,176 44,456 18,276 - -
Asphalt repairs (tons of asphalt)190 293 220 167 164 492 443 527 664 1,053
Recreation and culture
Shade trees planted 270 257 280 320 305 314 220 300 75 75
Diseased trees removed 46 208 60 40 12 15 6 25 15 20
Trails maintained (miles)18 18 20 40 40 41 41 42 43 43
Community center users 204,134 199,228 197,523 188,124 183,523 183,521 71,632 94,448 117,942 N/A
Program sales 184,125$ 213,924$ 193,628$ 162,461$ 183,194$ 112,506$ 17,930$ 44,837$ 62,486$ 50,276$
Rental revenue 150,964$ 154,938$ 168,353$ 190,343$ 199,200$ 197,351$ 73,096$ 136,722$ 183,114$ 187,166$
Library
Items checked out 199,182 195,235 190,433 182,986 182,691 171,460 112,334 143,223 138,428 134,747
Programs offered 169 167 212 290 287 243 102 104 133 134
Program participants 3,788 3,919 4,306 5,336 5,059 4,788 4,810 1,772 3,317 2,801
Economic development
Permits issued 721 768 802 911 856 837 957 1,008 909 1,122
Permit valuation 19,714,895$ 36,242,742$ 59,426,683$ 43,853,123$ 33,125,788$ 45,723,446$ 32,453,366$ 66,827,121$ 41,989,848$ 76,068,705$
New residential dwellings 72 44 61 64 58 56 68 95 35 46
Water
Meters read 16,099 16,520 16,800 51,240 52,092 52,752 53,496 54,564 56,402 55,924
Meters/remotes replaced 598 694 991 734 606 426 54 58 75 83
Water valves maintained 242 436 400 400 401 447 120 533 479 475
Hydrants maintained 203 430 250 177 172 428 153 216 225 468
Residential water gallons used 328,835,772 325,188,041 329,068,876 371,596,967 352,322,681 307,411,101 392,258,038 442,964,466 409,192,333 435,136,857
Avg. daily consumption (MG)1.400 1.308 1.419 1.580 1.540 1.401 1.650 1.846 1.717 1.784
Max. daily gallons pumped (MG)4.031 3.203 3.450 4.168 3.400 3.064 4.295 4.648 4.179 4.133
Sewer
Sewer flow (MG)435 417 432 445 434 473 446 482 425 433
Thickened sludge (wet tons)1,924 1,549 1,449 1,578 2,115 2,145 2,072 2,207 2,231 2,132
Thickened sludge (dry tons)264 236 216 229 333 336 314 336 317 303
Dry tons as % of wet tons 0 15.24% 14.91% 14.51% 15.74% 15.66% 15.48% 15.22% 14.21% 14.21%
Fiscal Year
(continued)
111
CITY OF MONTICELLO
Operating Indicators by Function
Last Ten Fiscal Years (continued)
2014 2015 2016 2017 2018 2019 2020 2021 2022 2023
Fiber optics
Customers 1,539 1,574 1,630 1,671 1,639 1,701 1,851 1,842 1,786 1,723
Service subscriptions 2,755 2,656 2,589 2,528 2,388 2,381 2,439 2,394 2,283 2,182
TV customers 813 714 641 543 458 395 323 289 256 233
Phone customers 582 518 461 431 386 362 315 297 275 248
Internet customers 1,360 1,424 1,487 1,554 1,544 1,624 1,801 1,808 1,752 1,701
Liquor store
Transactions 229,236 237,535 235,901 248,356 261,071 267,276 260,957 250,962 249,604 240,982
Average liquor sale transaction 21.90$ 22.42$ 22.39$ 22.42$ 22.56$ 23.07$ 27.48$ 27.32$ 27.72$ 28.13$
Beer sales 2,604,942$ 2,763,478$ 2,768,394$ 2,933,853$ 3,074,408$ 3,252,142$ 3,838,912$ 3,665,223$ 3,695,976$ 3,571,363$
Liquor sales 1,546,118$ 1,634,198$ 1,624,908$ 1,739,562$ 1,909,953$ 2,019,096$ 2,351,072$ 2,276,808$ 2,340,709$ 2,350,700$
Wine sales 868,779$ 927,732$ 889,082$ 894,151$ 904,385$ 894,005$ 982,113$ 915,444$ 882,772$ 855,693$
Other sales 145,903$ 166,654$ 171,420$ 192,615$ 201,482$ 212,052$ 232,452$ 249,112$ 253,581$ 273,155$
Gross profit margin % - beer 21.4%25.6%21.1%23.2%21.4%22.5%21.2%23.8%24.5%23.4%
Gross profit margin % - liquor 30.3%29.8%29.0%26.6%29.0%30.1%30.7%28.9%30.9%30.6%
Gross profit margin % - wine 30.7%31.5%32.5%34.4%32.5%31.8%33.4%29.6%27.0%31.1%
Annual sales increase 2.4%6.3%-0.7%5.6%5.7%4.7%16.1%-4.0%0.9%-1.7%
Deputy registrar (DMV)
Motor vehicle transactions 60,051 64,927 67,508 70,605 110,574 129,825 115,466 88,875 77,515 77,870
DNR transactions 5,949 5,914 6,318 5,873 7,009 8,148 8,424 8,759 9,984 8,950
Game/fish transactions 433 387 600 647 549 709 311 265 245 264
Drivers licenses transactions 1,462 1,294 1,465 1,390 1,411 1,283 2,927 3,885 3,334 3,326
Total transactions 67,895 72,522 75,891 78,515 119,543 139,965 127,128 101,784 91,078 90,410
Dealerships serviced 19 19 21 27 28 30 32 32 43 74
Net revenue per transaction 2.91$ 3.02$ 3.05$ 2.66$ 2.21$ 3.48$ 2.15$ 1.16$ 1.30$ 2.89$
N/A = Not Available
MG = Millions of Gallons
Notes: Indicators are not available for the general government function.
The City transitioned from quarterly to monthly utility billing in 2017.
State implementation of MNLARS changed how transactions are counted in 2018. Additionally, 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
2014 2015 2016 2017 2018 2019 2020 2021 2022 2023
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 69.0 70.0 70.0 70.0 70.0 81.0 81.0
Recreation and culture
Parks acreage maintained 180 180 185 320 320 360 360 365 365 365
Parks 30 30 30 30 30 30 30 30 30 30
Park buildings 15 15 15 15 18 18 18 19 19 19
Community center (sq. ft.)82,000 82,000 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 Nine Fiscal Years
2015 2016 2017 2018 2019 2020 2021 2022 2023
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$ 1,924,721$ 2,146,870$ 2,004,258$
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) (1,811,460) (1,669,489) (1,280,934)
Cash paid to employees (565,657) (322,670) (18,367) (205) (244) (4,086) (2,265) - -
Cash paid to other funds for services provided (24,291) (26,929) - (1,530) (1,194) (1,050) (1,050) (820) (424)
Net cash used by operating activities (188,943) (394,496) (87,023) (198,884) 323,188 269,251 109,946 476,561 722,900
Cash flows from noncapital financing activities
Transfers from other funds 450,000 350,000 180,000 130,000 - - - - -
Franchise fees - - - - - - - 53,000 20,587
Intergovernmental revenues - - - - - 82,063 - - -
Net cash provided by noncapital financing activities 450,000 350,000 180,000 130,000 - 82,063 - 53,000 20,587
Cash flows from capital and related financing activities
Sale of assets 29,850 - - - - - - - -
Acquisition of capital assets - - - - - (171,210) (92,701) (199,209) (198,713)
Net cash provided (used) by capital and related
financing activities 29,850 - - - - (171,210) (92,701) (199,209) (198,713)
Cash flows from investing activities
Interest on investments 8,255 5,783 4,490 3,216 16,259 14,001 (4,496) (37,000) 70,617
Net increase (decrease) in cash and cash equivalents 299,162 (38,713) 97,467 (65,668) 339,447 194,105 12,749 293,352 615,391
Additional city funding
Transfer from liquor fund (450,000) (350,000) (180,000) (130,000) - - - - -
2014A debt service paid by property tax levy/fund balance (163,712) (515,519) (512,086) (512,665) (512,357) (511,638) (4,438,821) - -
Adjusted net decrease in cash and cash equivalents (314,550)$ (904,232)$ (594,619)$ (708,333)$ (172,910)$ (317,533)$ (4,426,072)$ 293,352$ 615,391$
$(5,000,000)
$(4,000,000)
$(3,000,000)
$(2,000,000)
$(1,000,000)
$-
$1,000,000
2015 2016 2017 2018 2019 2020 2021 2022 2023
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/fund balance
Adjusted net decrease in cash and cash equivalents
114
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