2024 Monticello Annual Comprehensive Financial ReportAnnual Comprehensive Financial Report
For the Year Ended December 31 , 2024
City of Monticello, Minnesota
505 Walnut Street • 763-295-2711 • monticellomn.gov
City of Monti
cello
Wright County, Minnesota
Annual Comprehensive
Financial Report
FOR THE YEAR ENDED DECEMBER 31, 2024
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, 2024
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, Expenditures and Changes in Fund Balance - Budget and Actual - Small Cities 77
Development Program
Schedule of Revenues, Expenditures and Changes in Fund Balance - Budget and Actual - Cemetery Fund 78
Schedule of Assets, Liabilities, Deferred Inflows of Resources and Fund Balances - Debt Service Activities 79
Schedule of Revenues, Expenditures and Changes in Fund Balance - Debt Service Activities 80
Schedule of Assets, Liabilities, Deferred Inflows of Resources and Fund Balances - Discretely Presented
Component Unit - Economic Development Authority 82
Schedule of Revenues, Expenditures and Changes in Fund Balance - Discretely Presented Component
Unit - Economic Development Authority 84
(continued)
I
CITY OF MONTICELLO
Financial Statements
Table of Contents
December 31, 2024 (continued)
STATISTICAL SECTION
Financial trends
Net Position by Component - Last Ten Fiscal Years 87
Changes in Net Position - Last Ten Fiscal years 88
General Governmental Tax Revenues by Source - Last Ten Fiscal Years 90
Fund Balances of Governmental Funds - Last Ten Fiscal Years 91
Changes in Fund Balances of Governmental Funds - Last Ten Fiscal Years 92
Governmental Funds Tax Revenues by Source - Last Ten Fiscal Years 93
Revenue capacity
Tax Capacity Value and Estimated Market Value of Taxable Property - Last Ten Fiscal Years 94
Property Tax Rates - All Direct and Overlapping Governments - Last Ten Fiscal Years 95
Property Tax Levies and Collections - Last Ten Fiscal Years 96
Principal Property Taxpayers - Current Year and Nine Years Ago 97
New Construction and Bank Deposits - Last Ten Fiscal Years 98
Water Sold by Customer Type - Last Ten Fiscal Years 99
Water and Sewer Utility Rates - Last Ten Fiscal Years 100
Debt capacity
101
102
103
104
Ratios of Outstanding Debt by Type - Last Ten Fiscal Years
Ratios of Net General Obligation Bonded Debt Outstanding - Last Ten Fiscal Years
Legal Debt Margin Information - Last Ten Fiscal Years
Computation of Direct and Overlapping Debt - As of December 31, 2024
Schedule of General Obligation Revenue Bond Coverage - Last Ten Fiscal Years 105
Economic and demographic information
Demographic and Economic Statistics - Last Ten Fiscal Years 106
Principal Employers - Current Year and Nine Years Ago 107
Operating information
City Government Employees by Function/Program - Last Ten Fiscal Years 108
Operating Indicators by Function - Last Ten Fiscal Years 109
Capital Assets Statistics by Function - Last Ten Fiscal Years 111
Schedule of Cash Flows Adjusted for Additional City Funding of Fiber Optics Fund - Last Ten Fiscal Years 112
II
INTRODUCTORY SECTION
May 7, 2025
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, 2024. 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, 2024, 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, 2024 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. Additionally, 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 14,840. 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 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.
1
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 technology, and general government building maintenance.
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). 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 768 building permits in 2015
with a total valuation of $36,242,742. In 2024, the city issued 2,275 permits with a total valuation of
$32,680,906.
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. On the other
hand, volatility in the valuation of the nuclear plant greatly impacts Monticello’s tax base. To assist
external stakeholders, the city is continuously exploring various ways to better represent its financial
position. Other initiatives include implementing a half-percent local sales tax for the Bertram Chain of
Lakes Regional Athletic Park effective April 1, 2025, 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 2024. 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 reestablish the downtown area as 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 continued in 2024 and is anticipated to be completed in
2025. 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, or another alternative to the existing 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. Planning was paused as the city work
to align proper funding sources for the project to move forward.
2
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 is altogether a regional
park. Wright County and the city obtained matching grants from the state to purchase much of the
acreage in the park. Construction of 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 the eventual Xcel plant
decommissioning. In January 2025, Xcel’s request to extend the licensure of the Monticello plant past its
current expiration in 2030 was approved. Its current license is extended to 2050; however, the State has
only approved the storage of spent fuel through 2040, so Xcel is in the process of extending this second
deadline. While the extension of Xcel’s license is certainly good news for Monticello’s economy, the city
realizes that planning for the future needs to continue happening now.
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 five-year Capital Improvement Plan as a financial planning document for major
purchases. As demonstrated by the statements and schedules included in the financial section of this
report, the city continues to meet its responsibility for sound financial management.
ACKNOWLEDGEMENTS
The Government Finance Officers Association of the United States and Canada (GFOA) awarded a
Certificate of Achievement for Excellence in Financial Reporting to the city for its ACFR for the fiscal year
ended December 31, 2023. This was the fourteenth 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 2024 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 city staff, most notably the finance department, 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 unwavering 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, 2023. 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, 2023
Executive Director
4
CITY OF MONTICELLO
Organization Chart
Residents
City Council
City Administrator
Human Resources Manager
Communications Specialist Finance Director
Finance
& Audit
Deputy Registrar
Liquor Operations
Information Technology
Community Development Director
Economic Development
Building Inspections
Consulting Planner
CIty Engineer
Assistant City Engineer
Construction Inspections
Consulting Engineer
Public Works Director
Streets Department
Utilities 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
MAYOR & CITY COUNCIL
Position Name Term Expires
Mayor ....................................................................... Lloyd Hilgart 12/31/2024
Council ............................................................. Charolette Gabler 12/31/2026
Council ........................................................................ Tracy Hinz 12/31/2026
Council ..................................................................... Sam Murdoff 12/31/2024
Council ........................................................................ Lee Martie 12/31/2024
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 Specialist ....................................................... Stephanie Trottier
Street Superintendent ...................................................................... Mike Haaland
Utilities Superintendent ......................................................................... Mat Stang
Facilities Maintenance Manager ..................................................... Dan Halverson
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 ...................................................................... Bob Ferguson
Fire Chief ........................................................................................... Jake Olinger
PROFESSIONAL SERVICES
Law Enforcement .................................................... Wright County Sheriff’s Office
City Attorney .................................................................... Campbell Knutson, P.A.
City Planning Consultant .................................. Northwest Associated Consultants
Financial Advisor ............................................................. Northland Securities, Inc
Fibernet Management Services .................................................................... Arvig
6
FINANCIAL SECTION
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, 2024, and the related notes to the financial
statements, which collectively comprise the City’s basic financial statements as listed in the table of contents.
In our opinion, the financial statements referred to above present fairly, in all material respects, the respective financial
position of the governmental activities, the business-type activities, the discretely presented component unit, each major
fund and the aggregate remaining fund information of the City as of December 31, 2024, and the respective changes in
financial position and, where applicable, cash flows thereof 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 7, 2025, on our
consideration of the City’s internal control over financial reporting and on our tests of its compliance with certain
provisions of laws, regulations, contracts, and grant agreements and other matters. The purpose of that report is solely to
describe the scope of our testing of internal control over financial reporting and compliance and the results of that testing ,
and not to provide an opinion on the effectiveness of the City’s internal control over financial reporting or on compliance.
That report is an integral part of an audit performed in accordance with Government Auditing Standards in considering the
City’s internal control over financial reporting and compliance.
Abdo
Minneapolis, Minnesota
May 7, 2025
9
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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 . 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 $166,926,737 (net position). Of this amount, $56,024,171 (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 $21,788,002, a decrease of $1,025,964, or 4.5%. The largest contributing factor to this
decrease, is due to the decrease in capital grants as several projects were or neared completion in 2024.
Nonspendable, restricted, and assigned uses of fund balance totaled $13,832,600, leaving an unassigned
fund balance of $7,955,402 which is $538,748, or 7.0%, higher than the 2023 ending unassigned balance.
•At the end of the current fiscal year, unassigned fund balance for the General Fund was $7,955,402, or
63.3%, of total General Fund expenditures for 2024. 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 2024, government-wide capital assets increased by $4,055,871. 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 of a water treatment plant. Parks, public works, and
the building department purchased new vehicles and equipment. Other new additions were the replacement
of the fire alarm system and indoor play equipment for the Community Center.
•The city’s total long-term bonded indebtedness decreased by $2,583,000, or 13.5%, in 2024, which
consisted of principal payments paid on outstanding bonds according to the amortization schedules. The
city did not issue any new bonds in 2024.
Overview of the Basic Financial Statements
The discussion and analysis are intended to s erve 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 o f contributions, and progress in funding its obligation
to provide pension and other postemployment benefits to its employees. Require d 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
2024 2023 2024 2023 2024 2023
Current and other assets 33,142,191$ 36,698,595$ 35,916,032$ $31,215,270 69,058,223$ 67,913,865$
Capital assets 86,460,426 80,816,537 39,010,385 40,598,403 125,470,811 121,414,940
Total assets 119,602,617 117,515,132 74,926,417 71,813,673 194,529,034 189,328,805
Deferred outflows of resources 790,192 1,188,819 155,753 299,641 945,945 1,488,460
Long-term liabilities 16,406,662 19,611,320 3,061,984 3,768,739 19,468,646 23,380,059
Other liabilities 2,290,823 2,944,820 997,244 1,150,584 3,288,067 4,095,404
Total liabilities 18,697,485 22,556,140 4,059,228 4,919,323 22,756,713 27,475,463
Deferred inflows of resources 4,705,977 4,908,180 1,085,552 974,956 5,791,529 5,883,136
Net position
Net investment in capital assets 71,286,189 63,232,687 36,818,066 37,944,447 108,104,255 101,177,134
Restricted 2,798,311 4,211,042 - - 2,798,311 4,211,042
Unrestricted 22,904,847 23,795,902 33,119,324 28,274,588 56,024,171 52,070,490
Total net position 96,989,347$ 91,239,631$ 69,937,390$ 66,219,035$ 166,926,737$ 157,458,666$
Governmental Activities Business-Type Activities Total
By far the largest portion of the city’s net position (64.8%) 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 (1.7%) represents resources that are subject to external restrictions on how
they can be used. The remaining unrestricted net position of $56,024,171 may be used to meet the ongoing
obligations to citizens and creditors.
The unrestricted governmental activities net position decreased $891,055 (3.7%), and business-type activities
unrestricted net position increased $4,844,736 (17.1%). The government-wide total unrestricted net position
increased $3,953,681 (7.6%) reflecting revenues exceeding conservative budgeted estimates and expenditures
below liberal estimates.
The $5,643,889 (7.0%) 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 $1,588,018
(3.9%) due to depreciation more than additions. Total net investment in capital assets, which is capital assets less
related debt, increased because capital asset acquisitions less the amount of debt borrowed to acquire assets (none
in 2024) exceeded capital asset disposals and depreciation.
13
Management’s Discussion and Analysis CITY OF MONTICELLO
CHANGE IN NET POSITION
2024 2023 2024 2023 2024 2023
Revenues
Program revenues
Charges for services 4,995,809$ 5,311,706$ 15,610,016$ 15,664,859$ 20,605,825$ 20,976,565$
Operating grants and contributions 856,498 1,640,385 - 474,925 856,498 2,115,310
Capital grants and contributions 2,670,075 5,926,525 1,601,506 2,915,922 4,271,581 8,842,447
General revenues
Property taxes 13,241,788 12,163,726 - - 13,241,788 12,163,726
Franchise taxes 409,068 400,591 12,510 20,587 421,578 421,178
Unrestricted investment earnings 1,201,839 1,316,451 1,498,907 1,237,097 2,700,746 2,553,548
Gain on sale of assets - 33,950 - - - 33,950
Total revenues 23,375,077 26,793,334 18,722,939 20,313,390 42,098,016 47,106,724
Expenses
General government 2,984,967 2,694,603 - - 2,984,967 2,694,603
Public safety 4,185,426 3,461,914 - - 4,185,426 3,461,914
Public works 5,172,825 5,652,111 - - 5,172,825 5,652,111
Sanitation 911,886 817,199 - - 911,886 817,199
Recreation and culture 5,067,388 4,902,539 - - 5,067,388 4,902,539
Interest and fiscal charges 402,869 448,258 - - 402,869 448,258
Water - - 1,451,015 1,449,050 1,451,015 1,449,050
Sewer - - 3,065,698 3,215,564 3,065,698 3,215,564
Stormwater - - 644,602 650,470 644,602 650,470
Liquor - - 5,988,195 6,315,729 5,988,195 6,315,729
Fiber optics - - 2,040,533 1,934,753 2,040,533 1,934,753
Deputy registrar - - 714,541 687,325 714,541 687,325
Total expenses 18,725,361 17,976,624 13,904,584 14,252,891 32,629,945 32,229,515
Increase in net position before transfers 4,649,716 8,816,710 4,818,355 6,060,499 9,468,071 14,877,209
Transfers 1,100,000 3,614,311 (1,100,000) (3,614,311) - -
Change in net position 5,749,716 12,431,021 3,718,355 2,446,188 9,468,071 14,877,209
Net position, January 1 91,239,631 78,808,610 66,219,035 63,772,847 157,458,666 142,581,457
Net position, December 31 96,989,347$ 91,239,631$ 69,937,390$ 66,219,035$ 166,926,737$ 157,458,666$
Governmental Activities Business-Type Activities Total
Governmental Activities. The most significant revenue source for governmental activities is property taxes at 56.7%
of total revenues. Property taxes support the General, Community Center, Capital Project, and Debt Service funds.
Charges for services account for 21.4% of revenues, with about 25.3% 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 decreased $3,418,257 (12.8%) in the current year. Charges for services decreased
$315,897 (5.9%) with a decrease in pension revenues from state contributions related to the Public Employees
Retirement Association (PERA) pension. Additionally, operating grants and aids decreased $783,887 (47.8%) mostly
due to one-time public safety aid allocated from the State of Minnesota in 2023. Capital grants and contributions
decreased $3,256,450 (54.9%) as activity with the downtown roadway and pedestrian improvement project, which
received significant funding from Wright County in 2023, neared completion. Property taxes increased by $1,078,062
(8.9%) due to an increase in the city’s levy. Investment earnings decreased $114,612 (8.7%) as the overall market
remained stable while specific investments were adjusted to market value. While the property tax rate only increased
0.2% from 2023, the tax levy saw an 8.5% increase in 2024 due to an increase in the city’s tax capacity.
Public works (engineering, streets, ice and snow removal, shop and garage, street lighting, etc.) expenses are the
most significant (27.6%), followed by recreation and culture (27.1%), public safety (22.4%), general government
(15.9%), sanitation (4.9%), and interest and fiscal charges (2.2%). Included in these amounts is depreciation expense,
which is 22.0% of the total expenses for governmental activities.
Governmental activities expenses increased $748,737 (4.2%) in the current year. The most significant changes in
program expenses were as follows:
• Public safety increased $723,512 (20.9%) the largest expenditures were related to the increase in the contract
with the Wright County Sheriffs office and a full year of a filled building inspector position, which had been vacant.
Offsetting those expenses were decreased utilities and repair and maintenance expenses within the building
department and animal control.
• General government expenses increased $290,364 (10.8%) due to increase in cost of solar production
investment, changing a part time administrative position to full time, and election operations.
• Public works expenses decreased $419,586 (7.5%) due to a decrease in amortization of deferred pension inflows
and outflows to the public works function’s allocation of pension expense.
14
Management’s Discussion and Analysis CITY OF MONTICELLO
Investment earnings
5.1%
Charges for services
21.4%
Operating
grants &
contributions
3.7%
Capital grants &
contributions
11.5%
Franchise taxes
1.7%Property
taxes
56.6%
Revenues by Source -Governmental
Activities
$-
$1
$2
$3
$4
$5
$6
Mi
l
l
i
o
n
s
Program Expenses and Revenues -
Governmental Activities
Business-type Activities. Business-type activities increased the city’s net position by $3,718,355, which is
$1,272,167 more than the prior fiscal year’s increase in business-type net position. The change is attributable to a
smaller transfer out to governmental activities and continued growth in investment earnings, which are both offset
by a decrease in the amount of commercial development trunk and access fees received compared to 2023.
Charges
for services
83.3%
Capital grants &
contributions
8.6%Franchise taxes
0.1%Investment earnings
8.0%
Revenues by Source -Business-Type
Activities
$-
$1
$2
$3
$4
$5
$6
$7
Mi
l
l
i
o
n
s
Program Revenues and Expenses -
Business-Type Activities
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, 2024, the city’s governmental funds reported total ending fund balances of $21,788,002, a
decrease of $1,025,964 (4.5%) when compared with the prior year. Approximately 8.3% or $1,803,916 of the total
ending fund balances constituted restricted fund balances, which are considered unavailable for appropriation for
general operations. The $201,432 nonspendable fund balance accounted for 0.9% 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 $8,124,291, decreasing $54,382 (0.7%)
from the prior year. General fund revenues were $495,237 (3.7%) more than the prior fiscal year and expenditures
increased by $1,233,846 (10.9%).
15
Management’s Discussion and Analysis CITY OF MONTICELLO
Public safety expenditures increased $659,903 (20.2%) due to an increase in the law enforcement contract with the
Wright County Sheriffs Office. General government expenditures increased $293,643 (10.9%), which is mostly due
to the increase in cost of solar production investment (which is offset with revenues), changing a part -time
administrative position to full time, and increased election operations. There was an increase in Sanitation of $94,687
(11.6%) due to increased refuse and recycling rates per the contract with an independent hauler. Recreation and
culture expenditures increased by $150,695 (7.7%) due to new carpet installation in the Library and the installation
of AED machines in the parks. Public works expenditures increased $34,918 (1.3%). The largest increase was related
to the Safe Streets for All engineering study, which was offset with grants.
The fund balance in the Community Center Fund decreased $207,181 (38.1%) to $336,722, due to a combination of
lower daily user fees and the end of the ARPA grant contributions in 2023. Charges for services increased $11,185
(0.9%) to $1,266,399 in 2024. Daily user fees decreased, however, farmers market and membership revenues
increased. Expenditures increased $26,375 (1.2%) to $2,169,708 due to a decrease in maintenance expenditures,
which are now accounted for through the Facilities Maintenance internal service fund.
The fund balance in the Debt Service Fund decreased $253,641 (34.8%) to $474,295. This fund balance decrease
reflects the prior year accumulation of resources to make scheduled bond payments. Special assessment revenue
decreased $16,745 (5.6%) to $283,443 because assessments are structured with even principal and declining
interest payments each year. 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 $212,358 (2.2%) to
$9,430,170. While the tax levy to the Capital Projects Fund increased $447,704 (28.9%), intergovernmental revenues
and charges for services decreased by a similar amount due to the nature of projects in 2024 compared to 2023.
Proprietary funds. The proprietary funds provide the same type of information found in the business-type activities
in the government-wide financial statements, but in more detail.
Water Fund operating expenses decreased $1,289 (0.1%). Utility employee personal service costs are divided
between the Water Fund and Sewer Fund based on activity. The Water Fund operating revenues increased $8,642
(0.4%) with an increase in rates offset by a decrease in consumption caused by a dry year in 2023 . The fund’s net
position increased $1,564,037 (9.2%) to $18,652,568 due to commercial development trunk and access fees
received, which will be used to fund future system improvements. Depreciation expense for the fund totaled $483,768.
Sewer Fund expenses decreased $147,237 (4.7%) and operating revenues increased $148,371 (4.9%) with an
increase in rates. Residential sewer consumption is limited by a winter average calculation and is not as susceptible
to fluctuations in summer weather patterns. The fund’s net position increased $1,630,483 (6.0%) to $28,748,785 due
to commercial development trunk and access fees received, which will be used to fund future system improvements.
Depreciation expense for the fund totaled $1,189,075.
Stormwater operating expenses decreased 5,868 (0.9%). Stormwater operating revenues increased $42,862 (6.9%)
due to an increase in rates along with an increased number of utility billing customer accounts in 2024. The fund’s
net position increased $459,634 (6.8%) to $7,177,277. Depreciation expense for the fund totaled $442,026.
The Liquor Fund’s net position decreased $383,054 (30.3%) to $880,381, comprised of roughly $600,000 in income
offset by a $1,000,000 transfer to the Capital Projects Fund. Liquor and related product sales decreased $560,936
(8.0%) to $6,481,607. Profits from the liquor store are held until transferred out for another city use. Gross profit
decreased $179,183 (9.6%) for a total gross profit of $1,689,384. Operating expenses increased $13,961 (1.2%) to
$1,159,165, and depreciation expense for the fund totaled $19,575. The decrease in sales is mostly attributable to
changes in liquor industry trends and construction in the area that deterred customers from July through October,
which is peak sales in Minnesota.
The Fiber Optics Fund’s net position increased $88,648 (0.7%) to $12,656,176. The fund’s 2024 charges for service
increased $14,562 (0.8%) to $1,943,059. Excluding depreciation, the operating income was $376,913 in 2024.
Depreciation expense for the fund totaled $392,869. 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 increased $ 421,056 (29.7%) to $1,836,641. Charges for services
increased $205,912 (21.6%) to $1,157,908, and operating expenses increased $10,804 (1.6%) to $701,603.
Depreciation for the fund totaled $33,972.
Other factors of the changes in income from operations have previously been discussed in the government -wide
financial analysis of business-type activities.
16
Management’s Discussion and Analysis CITY OF MONTICELLO
GENERAL FUND BUDGETARY HIGHLIGHTS
During the year, there were no amendments to the budget. General Fund revenues and other financing sources
totaled $13,708,880 and exceeded the budget by $951,880 (7.5%). Licenses and permits, investment earnings,
charges for services were $437,801 (89.9%), $357,810 (538.7%), and $320,452 (23.7%) higher than budget,
respectively. Licenses and permits include building permits fees, investments include the interest earned and
adjustments to market value of investments, and charges for services are revenues for specific services (for example
billable staff time). These revenues can be difficult to predict, and are, therefore, budgeted conservatively.
General Fund expenditures totaled $12,563,262 and were $187,738 (1.5%) 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 excess of revenues over expenditures, which then allowed for a $1,200,000 transfer out to
other funds.
The general government function exceeded budget due to unbudgeted planning and zoning escrow activity that is
offset by unbudgeted charges for services revenues. The public safety function exceeded budget because of an
increase in building department costs related to a storm that caused widespread roof damage to residences and
businesses. Additionally, the city passes through state fire aid to the Monticello Fire Relief Association; this
passthrough was higher than what was included in the budget. Within the expenditure functions, twelve of twenty-
eight reporting units exceeded budget.
The General Fund year end fund balances for the past ten years are as follows:
$-
$2
$4
$6
$8
$10
General Fund Balance
CAPITAL ASSETS AND DEBT ADMINISTRATION
CAPITAL ASSETS
Capital assets. The city’s investment in capital assets for its governmental and business -type activities on totaled
$125,470,811 (net of accumulated depreciation). This investment in capital assets includes land, construction in
progress, buildings, and systems (including infrastructure), and machinery and equipment (including intangible
assets).
Major governmental activities capital assets changes: the completion of the School Boulevard and Pinewood
Elementary Safe Routes to School projects and the Flashing Yellow Arrows stoplight improvements. The parks,
streets and building department purchased new vehicles and equipment, and the Community Center installed a new
fire alarm system and indoor play equipment. Business-type capital assets include supervisory control and data
acquisition system for the water and sewer utilities, fiber installation of fiber lines into the Haven Ridge development,
and the relocation of a stormwater pond. The total increase from the prior fiscal year was 3.3%; governmental
activities increased 7.0% due to new investments exceeding depreciation on existing assets, and business-type
activities decreased 3.9% due to depreciation exceeding new acquisitions .
2024 2023 2024 2023 2024 2023
Land 17,359,078$ $17,359,078 867,010$ $867,010 18,226,088$ 18,226,088$
Construction in progress 17,999,839 12,448,518 484,514 1,198,773 18,484,353 13,647,291
Buildings and systems 109,551,447 106,414,327 108,994,388 107,306,862 218,545,835 213,721,189
Machinery and equipment 11,320,218 10,501,721 3,651,708 3,651,708 14,971,926 14,153,429
Less: Accumulated depreciation (69,770,156) (65,907,107) (74,987,235) (72,425,950) (144,757,391) (138,333,057)
Net total 86,460,426$ 80,816,537$ 39,010,385$ 40,598,403$ 125,470,811$ 121,414,940$
Governmental Activities Business-Type Activities Total
Additional information on the city’s capital assets can be found in the notes to the financial statements starting on
page 43.
17
Management’s Discussion and Analysis CITY OF MONTICELLO
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 $16,610,000 on December
31, 2024, which is a decrease of $2,583,000 from the prior year. Total long-term debt decreased with regularly
scheduled payments. No new debt was issued in 2024.
Additional information on the city’s long-term liabilities can be found in the notes to the financial statements starting
on page 44 of this report.
2024 2023 2024 2023 2024 2023
General obligation bonds 4,365,000$ 4,905,000$ 910,000$ 1,120,000$ 5,275,000$ 6,025,000$
Special assessment bonds 4,560,000 5,680,000 - - 4,560,000 5,680,000
Tax abatement bonds 5,505,000 6,110,000 - - 5,505,000 6,110,000
Public Facilities Authority revenue note - - 1,270,000 1,378,000 1,270,000 1,378,000
Total 14,430,000$ 16,695,000$ 2,180,000$ 2,498,000$ 16,610,000$ 19,193,000$
Activities Activities Total
Governmental Business-Type
ECONOMIC FACTORS AND NEXT YEAR’S BUDGETS AND RATES
•The unemployment rate for the Wright County, Minnesota area for 2024 was 2.7%, which is higher than the
state average (2.6%) and lower than the national average (3.8%).
•New commercial and residential development continued to grow at a sustainable pace in 2024 and have not
indicated a significant downward trend in 2025.
•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 commercial growth in 2025 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 city is active in monitoring
that state legislature’s proposed bills that could have an impact on housing regulations in the future.
•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, 2024
Component Unit
Economic
Governmental Business-type Development
Activities Activities Total Authority
ASSETS
Cash and investments 24,281,487$ 32,848,083$ 57,129,570$ 3,325,759$
Receivables
Unremitted taxes 67,789 - 67,789 3,503
Delinquent taxes 106,159 - 106,159 3,465
Unremitted special assessments 1,809 3,729 5,538 -
Delinquent special assessments 5,052 25,432 30,484 -
Deferred special assessments 2,524,977 775,375 3,300,352 -
Accrued interest 164,554 - 164,554 -
Accounts 381,291 937,544 1,318,835 8,142
Due from other governmental units 2,843,810 156,937 3,000,747 -
Leases 1,383,019 613,615 1,996,634 -
Internal balances 14,438 (14,438) - -
Inventory - 490,182 490,182 -
Prepaid items 248,338 79,573 327,911 3,511
Notes receivable 90,307 - 90,307 702,211
Land held for resale 837,582 - 837,582 2,923,129
Net pension asset - FRA 191,579 - 191,579 -
Capital assets
Nondepreciable 35,358,917 1,351,524 36,710,441 -
Depreciable, net 51,101,509 37,658,861 88,760,370 -
TOTAL ASSETS 119,602,617 74,926,417 194,529,034 6,969,720
DEFERRED OUTFLOWS OF RESOURCES
Deferred other post-employment benefits resources 8,594 4,338 12,932 400
Deferred pension resources 781,598 151,415 933,013 13,291
TOTAL DEFERRED OUTFLOWS OF RESOURCES 790,192 155,753 945,945 13,691
LIABILITIES
Accounts and contracts payable 1,166,040 659,421 1,825,461 130,708
Accrued interest payable 14,347 7,446 21,793 -
Other accrued liabilities 82,980 16,417 99,397 -
Due to other governmental units 161,037 313,960 474,997 168
Unearned revenue 35,074 - 35,074 -
Escrow deposits 831,345 - 831,345 41,254
Noncurrent liabilities
Due within one year
Bonds, notes, leases, claims, compensated absences 2,566,085 402,435 2,968,520 14,441
Total OPEB liability 4,945 593 5,538 229
Due in more than one year
Net pension liability - PERA 1,526,391 743,887 2,270,278 65,295
Total OPEB liability 87,869 45,394 133,263 4,064
Bonds, notes, leases, claims, compensated absences 12,221,372 1,869,675 14,091,047 1,605
TOTAL LIABILITIES 18,697,485 4,059,228 22,756,713 257,764
DEFERRED INFLOWS OF RESOURCES
Deferred other post-employment benefits resources 33,754 16,305 50,059 1,548
Deferred pension resources 1,388,969 487,365 1,876,334 42,778
Deferred MSA state aid 1,942,091 - 1,942,091 -
Deferred lease resources 1,341,163 581,882 1,923,045 -
TOTAL DEFERRED INFLOWS OF RESOURCES 4,705,977 1,085,552 5,791,529 44,326
NET POSITION
Net investment in capital assets 71,286,189 36,818,066 108,104,255 -
Restricted for
Debt service 1,273,938 - 1,273,938 -
Economic development 984,152 - 984,152 1,383,003
Cemetery operations 178,989 - 178,989 -
Park improvements 169,653 - 169,653 -
Net pension asset 191,579 - 191,579 -
Tax increment - - - 896,493
Unrestricted 22,904,847 33,119,324 56,024,171 4,401,825
TOTAL NET POSITION 96,989,347$ 69,937,390$ 166,926,737$ 6,681,321$
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, 2024
Operating Capital
Charges for Grants and Grants and
Expenses Services Contributions Contributions
Governmental activities
General government 2,984,967$ 1,116,313$ 191,554$ -$
Public safety 4,185,426 1,233,448 327,654 -
Public works 5,172,825 145,863 250,695 2,670,075
Sanitation 911,886 914,121 18,788 -
Recreation and culture 5,067,388 1,578,754 67,807 -
Economic development - 7,310 - -
Interest and fiscal charges 402,869 - - -
Total governmental activities 18,725,361 4,995,809 856,498 2,670,075
Business-type activities
Water 1,451,015 2,106,093 - 434,319
Sewer 3,065,698 3,162,560 - 857,082
Stormwater 644,602 665,526 - 310,105
Liquor 5,988,195 6,493,915 - -
Fiber optics 2,040,533 2,015,650 - -
Deputy registrar 714,541 1,166,272 - -
Total business-type activities 13,904,584 15,610,016 - 1,601,506
Total primary government 32,629,945$ 20,605,825$ 856,498$ 4,271,581$
Component Unit
Economic development authority 1,599,357 46,841$ 294,248$ -$
General revenues
Property taxes
Tax increments
Franchise taxes
Unrestricted grants and contributions
Unrestricted investment earnings
Transfers
Operating
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
(1,677,100)$ -$ (1,677,100)$ -$
(2,624,324) - (2,624,324) -
(2,106,192) - (2,106,192) -
21,023 - 21,023 -
(3,420,827) - (3,420,827) -
7,310 - 7,310 -
(402,869) - (402,869) -
(10,202,979) - (10,202,979) -
- 1,089,397 1,089,397 -
- 953,944 953,944 -
- 331,029 331,029 -
- 505,720 505,720 -
- (24,883) (24,883) -
- 451,731 451,731 -
- 3,306,938 3,306,938 -
(10,202,979) 3,306,938 (6,896,041) -
- - - (1,258,268)
13,241,788 - 13,241,788 452,735
- - - 266,105
409,068 12,510 421,578 -
- - - 3,050
1,201,839 1,498,907 2,700,746 159,232
1,100,000 (1,100,000) - -
15,952,695 411,417 16,364,112 881,122
5,749,716 3,718,355 9,468,071 (377,146)
91,239,631 66,219,035 157,458,666 7,058,467
96,989,347$ 69,937,390$ 166,926,737$ 6,681,321$
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 8,588,421$ 349,516$ 475,186$ 9,818,447$ 3,354,162$ 22,585,732$
Receivables
Unremitted taxes 67,789 - - - - 67,789
Delinquent taxes 106,159 - - - - 106,159
Unremitted special assessments - - 1,809 - - 1,809
Delinquent special assessments - - 5,052 - - 5,052
Deferred special assessments 1,458 - 808,938 1,711,408 3,173 2,524,977
Accrued interest 164,554 - - - - 164,554
Accounts 369,548 6,728 - 1,500 1,115 378,891
Due from other governmental units 366,133 - - 2,477,677 - 2,843,810
Leases 1,383,019 - - - - 1,383,019
Prepaid items 127,033 32,260 - - 283 159,576
Notes receivable - - - - 90,307 90,307
Land held for resale - - - 837,582 - 837,582
Total assets 11,174,114$ 388,504$ 1,290,985$ 14,846,614$ 3,449,040$ 31,149,257$
LIABILITIES
Accounts and contracts payable 363,616$ 15,906$ 2,700$ 721,594$ 23,343$ 1,127,159$
Other accrued liabilities 58,889 24,091 - - - 82,980
Due to other governmental units 149,147 11,785 - - - 160,932
Unearned revenue 35,074 - - - - 35,074
Escrow deposits 831,345 - - - - 831,345
Total liabilities 1,438,071 51,782 2,700 721,594 23,343 2,237,490
DEFERRED INFLOWS OF RESOURCES
Unavailable revenue - property taxes 106,159 - - - - 106,159
Unavailable revenue - special assessments 1,458 - 813,990 1,711,408 3,173 2,530,029
Unavailable revenue - state aid and grants 162,972 - - 2,983,442 - 3,146,414
Deferred lease resources 1,341,163 - - - - 1,341,163
Total deferred inflows of resources 1,611,752 - 813,990 4,694,850 3,173 7,123,765
FUND BALANCES
Nonspendable 168,889 32,260 - - 283 201,432
Restricted - - 474,295 - 1,329,621 1,803,916
Assigned - 304,462 - 9,430,170 2,092,620 11,827,252
Unassigned 7,955,402 - - - - 7,955,402
Total fund balance 8,124,291 336,722 474,295 9,430,170 3,422,524 21,788,002
Total liabilities, deferred inflows of
resources, and fund balances 11,174,114$ 388,504$ 1,290,985$ 14,846,614$ 3,449,040$ 31,149,257$
December 31, 2024
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, 2024
Amounts reported for governmental activities in the Statement of Net Position are different because:
Total fund balances - governmental funds 21,788,002$
Long-term assets from pensions reported in governmental activities are not financial resources and, therefore,
are not reported as assets in the funds.191,579
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 17,999,839
Buildings and systems 109,551,447
Machinery and equipment 5,160,101
Accumulated depreciation (67,317,148)82,753,317
Governmental funds do not report long-term amounts related to other post-employment benefits and pensions.
Deferred outflows of resources - OPEB 8,594
Deferred outflows of resources - pensions 781,598
Deferred inflows of resources - OPEB (33,754)
Deferred inflows of resources - pensions (1,388,969) (632,531)
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 (14,430,000)
Other post-employment benefits liability (92,814)
Net pension liability - PERA (1,526,391) (16,049,205)
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 5,097,583$
Less internal services net position allocated to business-type activities 14,438 5,112,021
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.3,840,511
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.(14,347)
Net position of governmental activities 96,989,347$
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, 2024
101 226 Linked 401 Linked
400 Total Total
Community Debt Capital Nonmajor Governmental
General Center Service Projects Funds Funds
Revenues
Property taxes 8,685,314$ 525,000$ 2,026,175$ 1,996,693$ -$ 13,233,182$
Franchise taxes 203,292 - - - 205,776 409,068
Special assessments 364 - 283,443 892,478 779 1,177,064
Licenses and permits 924,801 - - - - 924,801
Intergovernmental 854,998 1,500 - 1,136,453 - 1,992,951
Charges for services 1,674,926 1,266,399 - 1,443,826 51,815 4,436,966
Fines and forfeitures 65,940 - - - - 65,940
Investment earnings 424,236 19,254 43,775 488,054 161,802 1,137,121
Interest on loans - - - - 2,838 2,838
Other revenues 875,009 50,374 - 64,980 7,950 998,313
Total revenues 13,708,880 1,862,527 2,353,393 6,022,484 430,960 24,378,244
Expenditures
Current
General government 2,990,174 - - - - 2,990,174
Public safety 3,923,882 - - - - 3,923,882
Public works 2,636,247 - - 11,832 - 2,648,079
Sanitation 911,886 - - - - 911,886
Recreation and culture 2,101,073 2,072,948 - - 28,753 4,202,774
Capital outlay
Public works - - - 7,923,010 596,882 8,519,892
Recreation and culture - 96,760 - - 103,727 200,487
Debt service
Principal - - 2,205,000 - - 2,205,000
Interest and fiscal charges - - 402,034 - - 402,034
Total expenditures 12,563,262 2,169,708 2,607,034 7,934,842 729,362 26,004,208
Excess (deficiency) of revenues over
(under) expenditures 1,145,618 (307,181) (253,641) (1,912,358) (298,402) (1,625,964)
Other financing sources (uses)
Transfers in - 100,000 - 1,700,000 - 1,800,000
Transfers out (1,200,000) - - - - (1,200,000)
Total other financing sources (uses)(1,200,000) 100,000 - 1,700,000 - 600,000
Net change in fund balances (54,382) (207,181) (253,641) (212,358) (298,402) (1,025,964)
Fund balance at beginning of year 8,178,673 543,903 727,936 9,642,528 3,720,926 22,813,966
Fund balance at end of year 8,124,291$ 336,722$ 474,295$ 9,430,170$ 3,422,524$ 21,788,002$
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, 2024
Amounts reported for governmental activities in the Statement of Activities are different because
Net change in fund balances - governmental funds (1,025,964)$
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 8,698,379
Capital contributions 348,148
Depreciation (3,600,995) 5,445,532
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.2,205,000
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 22,583
Change accrued interest payable 2,019 24,602
Long-term pension activity is not reported in governmental funds
Pension revenue from state contributions 71,285
Pension expense 172,166
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 8,606
Special assessments (1,292,279)
Grants receivable (208,117) (1,491,790)
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 286,436$
Subtract internal service fund activity allocated to business-type activities 62,449 348,885
Change in net position of governmental activities 5,749,716$
The notes to the financial statements are an integral part of this statement.25
Statement of Net Position
Proprietary Funds
December 31, 2024
661 662 663
601 602 652
Water Sewer Stormwater
ASSETS
Current assets
Cash and investments 10,468,835$ 14,971,895$ 2,941,136$
Receivables
Unremitted special assessments Unremitted special assessmentsUnremitted special assessments 1,968 419 1,342
Delinquent special assessments Delinquent special assessmentsDelinquent special assessments 25,432 - -
Deferred special assessments Deferred special assessmentsDeferred special assessments 406,835 290,575 77,965
Account receivable Account receivableAccounts 255,008 543,615 52,414
Lease 17,174 - -
Account receivable Account receivableDue from other governmental units - - 69,487
Inventory - - -
Prepaid items 19,485 31,305 6,291
Total current assets 11,194,737 15,837,809 3,148,635
Noncurrent assets
Lease receivable 596,441 - -
Capital assets
Land 208,143 516,952 136,315
Buildings and systems 22,019,707 49,406,725 19,888,656
Machinery and equipment 287,841 2,594,663 150,803
Construction in progress 387,521 19,512 77,481
Total capital assets Total capital assets 22,903,212 52,537,852 20,253,255
Less accumulated depreciation (15,142,623) (37,215,541) (16,119,137)
Total capital assets (net)7,760,589 15,322,311 4,134,118
Total noncurrent assets Total noncurrent assets Total noncurrent assets Total noncurrent assets 8,357,030 15,322,311 4,134,118
TOTAL ASSETS 19,551,767 31,160,120 7,282,753
DEFERRED OUTFLOWS OF RESOURCES
Deferred other post-employment benefits resources 837 879 495
Deferred pension resources 26,130 24,555 10,633
TOTAL DEFERRED OUTFLOWS OF RESOURCES 26,967 25,434 11,128
LIABILITIES
Current liabilities
Accounts and contracts payable 73,927 18,139 24,572
Accrued interest payable - 7,446 -
Other accrued liabilities 14,000 - -
Due to other governmental units 14,706 2,815 -
Bonds and loans payable - current - 324,000 -
Compensated absences due within one year 13,252 13,252 -
Total OPEB liability 593 - -
Total current liabilities 116,478 365,652 24,572
Noncurrent liabilities
Bonds and loans payable - net current portion - 1,856,000 -
Compensated absences payable 1,472 1,472 -
Total OPEB liability 9,405 10,064 4,564
Net pension liability 128,374 120,639 52,237
Total noncurrent liabilities 139,251 1,988,175 56,801
TOTAL LIABILITIES 255,729 2,353,827 81,373
DEFERRED INFLOWS OF RESOURCES
Deferred other post-employment benefits resources 4,450 3,905 1,007
Deferred pension resources 84,105 79,037 34,224
Deferred lease resources 581,882 - -
TOTAL DEFERRED INFLOWS OF RESOURCES 670,437 82,942 35,231
NET POSITION
Net investment in capital assets 7,760,589 13,142,311 4,121,799
Unrestricted 10,891,979 15,606,474 3,055,478
TOTAL NET POSITION 18,652,568$ 28,748,785$ 7,177,277$
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
877,772$ 2,176,411$ 1,412,034$ 32,848,083$ 1,695,755$
- - - 3,729 -
- - - 25,432 -
- - - 775,375 -
- 85,507 1,000 937,544 2,400
- - - 17,174 -
- - 87,450 156,937 -
490,182 - - 490,182 -
17,380 1,000 4,112 79,573 88,762
1,385,334 2,262,918 1,504,596 35,334,029 1,786,917
- - - 596,441 -
5,600 - - 867,010 -
848,997 15,705,433 1,124,870 108,994,388 -
286,263 305,726 26,412 3,651,708 6,160,117
- - - 484,514 -
1,140,860 16,011,159 1,151,282 113,997,620 6,160,117
(961,156) (5,259,233) (289,545) (74,987,235) (2,453,008)
179,704 10,751,926 861,737 39,010,385 3,707,109
179,704 10,751,926 861,737 39,606,826 3,707,109
1,565,038 13,014,844 2,366,333 74,940,855 5,494,026
1,326 - 801 4,338 -
53,635 - 36,462 151,415 -
54,961 - 37,263 155,753 -
182,416 358,668 1,699 659,421 38,881
- - - 7,446 -
2,417 - - 16,417 -
62,010 - 234,429 313,960 105
- - - 324,000 -
33,674 - 18,257 78,435 306,085
- - - 593 -
280,517 358,668 254,385 1,400,272 345,071
- - - 1,856,000 -
5,788 - 4,943 13,675 51,372
13,027 - 8,334 45,394 -
263,504 - 179,133 743,887 -
282,319 - 192,410 2,658,956 51,372
562,836 358,668 446,795 4,059,228 396,443
4,144 - 2,799 16,305 -
172,638 - 117,361 487,365 -
- - - 581,882 -
176,782 - 120,160 1,085,552 -
179,704 10,751,926 861,737 36,818,066 3,707,109
700,677 1,904,250 974,904 33,133,762 1,390,474
880,381$ 12,656,176$ 1,836,641$ 69,951,828 5,097,583$
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 (14,438)
Net position of business-type activities (pg. 19)69,937,390$
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, 2024
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 2,000,021$ 3,156,221$ 663,057$
Other 106,072 6,339 2,469
Total operating revenues 2,106,093 3,162,560 665,526
Operating expenses
Personal services 422,069 357,211 166,319
Materials and supplies 176,146 169,213 18,137
Other services and charges 367,159 1,299,084 18,120
Depreciation 483,768 1,189,075 442,026
Total operating expenses 1,449,142 3,014,583 644,602
Operating income (loss)656,951 147,977 20,924
Nonoperating revenues (expenses)
Franchise taxes - - -
Investment earnings 472,767 674,635 128,605
Interest expense - (49,211) -
Total nonoperating revenues (expenses)472,767 625,424 128,605
Income before capital contributions and transfers 1,129,718 773,401 149,529
Capital contributions 434,319 857,082 310,105
Transfers in - - -
Transfers out - - -
Change in net position 1,564,037 1,630,483 459,634
Net Position, January 1 17,088,531 27,118,302 6,717,643
Net Position, December 31 18,652,568$ 28,748,785$ 7,177,277$
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
6,481,607$ 6,481,607$
(4,792,223) (4,792,223)
1,689,384 1,689,384
- 1,943,059$ 1,157,908$ 8,920,266 1,580,914$
12,308 72,591 8,364 208,143 81,701
12,308 2,015,650 1,166,272 9,128,409 1,662,615
864,849 - 568,408 2,378,856 370,097
37,554 116,323 9,865 527,238 104,207
237,187 1,522,414 89,358 3,533,322 949,421
19,575 392,869 33,972 2,561,285 514,318
1,159,165 2,031,606 701,603 9,000,701 1,938,043
542,527 (15,956) 464,669 1,817,092 (275,428)
- 12,510 - 12,510 -
74,419 92,094 56,387 1,498,907 64,718
- - - (49,211) (2,854)
74,419 104,604 56,387 1,462,206 61,864
616,946 88,648 521,056 3,279,298 (213,564)
- - - 1,601,506 -
- - - - 500,000
(1,000,000) - (100,000) (1,100,000) -
(383,054) 88,648 421,056 3,780,804 286,436
1,263,435 12,567,528 1,415,585 4,811,147
880,381$ 12,656,176$ 1,836,641$ 5,097,583$
Adjustment to reflect the consolidation of internal service
fund related to enterprise funds (62,449)
Change in net position of business-type activities (pg. 21)3,718,355$
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, 2024
661 662/602 663/652
601 602 652
Water Sewer Stormwater
Cash flows from operating activities
Cash received from customers and users 2,004,287$ 3,077,934$ 653,530$
Cash from interfund services provided - - -
Cash paid to suppliers for goods and services (440,115) (1,418,192) (31,084)
Cash paid to employees (423,304) (396,716) (178,719)
Cash paid to other funds for services provided (37,873) (32,956) -
Net cash provided by operating activities 1,102,995 1,230,070 443,727
Cash flows from noncapital financing activities
Transfers from other funds - - -
Transfers to other funds - - -
Franchise fees - - -
Net cash provided (used) by noncapital financing activities - - -
Cash flows from capital and related financing activities
Capital contributions 356,082 809,326 248,372
Acquisition of capital assets (434,784) (66,776) (206,728)
Principal paid on long-term debt - (318,000) -
Interest and fiscal charges paid on long-term debt - (50,123) -
Net cash provided (used) by capital and related
financing activities (78,702) 374,427 41,644
Cash flows from investing activities
Interest on investments 472,767 674,635 128,605
Net increase (decrease) in cash and cash equivalents 1,497,060 2,279,132 613,976
Cash and cash equivalents, January 1 8,971,775 12,692,763 2,327,160
Cash and cash equivalents, December 31 10,468,835$ 14,971,895$ 2,941,136$
Operating income (loss)656,951$ 147,977$ 20,924$
Adjustments to reconcile operating income (loss) to
net cash provided by operating activities
Depreciation 483,768 1,189,075 442,026
OPEB expense 451 376 226
(Increase) decrease in assets
Special assessments receivable (65,679) (65,223) -
Accounts receivable (21,813) (19,403) (3,259)
Due from other governmental units - - (8,737)
Leases 17,174 - -
Inventory - - -
Prepaid items (608) 1,333 (179)
(Increase) decrease in deferred outflows
Deferred other post-employment benefits resources (144) (120) (73)
Deferred pension resources 20,081 28,613 11,616
Increase (decrease) in liabilities
Accounts and contracts payable 65,714 15,377 5,352
Other liabilities (2,350) - -
Due to other governmental units 211 439 -
Compensated absences (4,402) (4,402) -
Net pension liability (46,678) (80,766) (32,045)
Increase (decrease) in deferred inflows
Deferred other post-employment benefits resources (1,993) (1,661) (996)
Deferred pension resources 31,450 18,455 8,872
Deferred lease resources (29,138) - -
Net cash provided by operating activities 1,102,995$ 1,230,070$ 443,727$
Schedule of noncash investing, capital and
financing activities:
Disposal of capital assets -$ -$ -$
Capital assets purchased on account -$ -$ 12,319$
Capital contributions 99,740$ 84,390$ 77,551$
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
6,493,979$ 2,051,764$ 1,179,672$ 15,461,166$ -$
- - - - 1,660,595
(5,136,361) (1,676,386) (54,272) (8,756,409) (1,062,342)
(892,616) - (592,634) (2,483,989) (347,327)
(25,732) (430) (45,937) (142,928) -
439,270 374,948 486,829 4,077,840 250,926
- - - - 500,000
(1,000,000) - (100,000) (1,100,000) -
- 12,510 - 12,510 -
(1,000,000) 12,510 (100,000) (1,087,490) 500,000
- - - 1,413,780 -
- (146,934) - (855,223) (747,001)
- - - (318,000) (60,000)
- - - (50,123) (2,929)
- (146,934) - 190,434 (809,930)
74,419 92,094 56,387 1,498,907 64,718
(486,311) 332,618 443,216 4,679,691 5,714
1,364,083 1,843,793 968,818 28,168,392 1,690,041
877,772$ 2,176,411$ 1,412,034$ 32,848,083$ 1,695,755$
542,527$ (15,956)$ 464,669$ 1,817,092$ (275,428)$
19,575 392,869 33,972 2,561,285 514,318
752 - 527 2,332 -
- - - (130,902) -
- 36,114 (500) (8,861) (2,020)
- - (8,327) (17,064) -
- - - 17,174 -
(9,698) - - (9,698) -
(7,076) - (1,594) (8,124) (22,822)
(241) - (168) (746) -
48,263 - 36,061 144,634 -
(73,041) (38,079) 608 (24,068) 16,208
64 - - (2,286) -
(5,314) - 22,227 17,563 (2,100)
(7,255) - 2,547 (13,512) 22,770
(122,495) - (95,591) (377,575) -
(3,321) - (2,326) (10,297) -
56,530 - 34,724 150,031 -
- - - (29,138) -
439,270$ 374,948$ 486,829$ 4,077,840$ 250,926$
-$ -$ -$ -$ 5,805$
-$ -$ -$ 12,319$ (34,326)$
-$ -$ -$ 261,681$ -$
Business-Type Activities – Enterprise Funds
The notes to the financial statements are an integral part of this statement.31
Notes to the Financial Statements 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 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 on 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 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 sew er
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 operations of the city’s municipal 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.
34
Notes to the Financial Statements CITY OF MONTICELLO
Investments are generally stated at fair value, except for investments in external investment pools, which
are stated at amortized cost. Short-term highly liquid debt instruments (including commercial paper,
banker’s acceptances, and U.S. treasury and agency obligations) purchased with a remaining maturity
of one year or less are reported at amortized cost. Investment 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 f or 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 it s 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.
35
Notes to the Financial Statements CITY OF MONTICELLO
G. Receivables
Utility and miscellaneous accounts receivable are reported at gross value. Since the city is generally able
to certify delinquent amounts to the county for collection as special assessments, no allowance for
uncollectible accounts has been provided on current receivables.
The city contracted with a third party to manage its fiber optic network, 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
immaterial, and none have been made for 2024.
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 appropriatio n, and is, therefore, classified
as nonspendable in the governmental fund financial statements.
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 component unit at the lower of acquisition or market 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 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.
N. 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 .
O. 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.
P. Compensated Absences Payable
City employees earn paid-time-off (PTO) based upon the number of completed years of service and
employment status. All new full-time employees receive PTO. 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.
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 CITY OF MONTICELLO
Beginning in 2024 and pursuant to Minnesota state statutes, the city implemented an Earned Sick and
Safe Time (ESST) benefit to all eligible employees. Employees earning PTO do not earn a separate
ESST benefit.
ESST benefit: Accrue 1 hour of leave for every 30 hours worked up to 48 hours in a calendar year with a
balance not to exceed 80 hours at any point in time.
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.
Q.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,
2024:
Deferred Deferred
Net Pension Net Pension Outflows of Inflows of Pension
Pension Plan Asset Liability Resources Resources Expense
State-wide, mulit-
employer - PERA
Primary Government -$ 2,270,278$ 462,107$ 1,487,400$ 260,841$
Component Unit - EDA 65,295 13,291 42,778 7,502
Single-employer - FRA - 470,906 388,934 181,116
$ $ 2,335,573 946,304$ 1,919,112$ 449,459$
R.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.
-
191,579
191,579
38
Notes to the Financial Statements CITY OF MONTICELLO
S. 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
and the statement of net position and result from present value calculations related to the lease
receivable.
T. 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.”
U. 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 deleg ates
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.
39
Notes to the Financial Statements CITY OF MONTICELLO
When both restricted and unrestricted resources are available for use, it is the city’s policy to first use
restricted resources, then use unrestricted resources as they are needed. When committed, assigned, or
unassigned resources are available for use, it is the city’s policy to use resources in the following order:
1) committed, 2) assigned, and 3) unassigned.
V. 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.
W. 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.
NOTE 2. CASH, CASH EQUIVALENTS, AND INVESTMENTS
A. Components of Cash and Investments
Cash and investments at year-end consist of the following:
Total
Primary Component Reporting
Government Unit - EDA Entity
Deposits 4,167,079$ 3,325,759$ 7,492,838$
Investments 52,954,146 - 52,954,146
Cash on hand 8,345 - 8,345
Total cash and investments – Statement of Net Position 57,129,570$ 3,325,759$ 60,455,329$
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 $7,492,838 while the
balance on bank records was $7,788,868. 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.
40
Notes to the Financial Statements CITY OF MONTICELLO
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; Guarantee d Investment
Contracts guaranteed by a United States commercial bank, domestic branch of a foreign bank, or a
United States insurance company, and with a credit quality in one of the top two highest categories;
repurchase or reverse purchase agreements and securities lending agreements with financial institutions
qualified as a “depository” by the government entity, with banks that are members of the Federal Reserve
System with capitalization exceeding $10,000,000; that are a primary reporting dealer in U.S. government
securities to the Federal Reserve Bank of New York; or certain Minnesota securities broker-dealers. The
city’s investment policy does not further address credit risk.
Concentration Risk – This is the risk associated with investing a significant portion of the city’s
investment (5% or more) in the securities of a single issuer, excluding U.S. guaranteed investments (such
as treasuries), investment pools, and mutual funds. The city’s invest ment 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, 2024.
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.
41
Notes to the Financial Statements CITY OF MONTICELLO
The city’s cash management and investment policy complies with all statutory requirements.
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 -$ 1,044,429$ 739,829$ -$ 1,784,258$ 3.4%
Federal Farm Credit Bank AAA Moody's Level 2 - 266,034 - - 266,034 0.5%
Federal Agriculture Mortgage
Corporation N/R N/A Level 2 - - 624,210 - 624,210 1.2%
Federal Home Loan Bank AA+S&P Level 2 - 2,185,039 - 499,520 2,684,559 5.1%
Federal Home Loan Bank AAA Moody's Level 2 246,483 - - 299,692 546,175 1.0%
Federal Home Loan Mortgage
Corporation AA+S&P Level 2 - 769,248 - - 769,248 1.5%
Negotiable certificates of deposit N/R N/A Level 2 3,984,126 13,607,673 2,249,775 - 19,841,574 37.6%
Local government securities AAA S&P Level 2 - 88,677 - 490,505 579,182 1.1%
Local government securities AA+S&P Level 2 149,846 720,955 258,663 1,778,644 2,908,108 5.5%
Local government securities Aaa Moody’s Level 2 - 400,473 - 249,334 649,807 1.2%
Investment pools and mutual fundsN/R N/A Amortized Cost 22,269,386 - - - 22,269,386 42.0%
Investment pools and mutual fundsAAA S&P Amortized Cost 31,605 - - - 31,605 0.1%
Total investments 26,681,446$ 19,082,528$ 3,872,477$ 3,317,695$ 52,954,146$ 100.0%
N/R – Not Rated
N/A – Not Applicable
Credit Risk Interest Risk - Maturity Duration in Years
Investment Type
D. Cash on Hand
Cash on hand consists of cash in the possession of the city, including petty cash and change funds.
NOTE 3. LEASE RECEIVABLE
The city had the following lease receivables as of December 31, 2024:
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$ 19,741$
Verizon Wireless - Monopole Antenna 04/01/23 03/31/68 2.83 25,800 1,363,278
Verizon Wireless - Water Tower Antenna 05/01/17 05/01/44 1.80 28,528 613,615
Total Lease Receivable 1,996,634$
Discount
Description Rate
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.
42
Notes to the Financial Statements CITY OF MONTICELLO
NOTE 4. CAPITAL ASSETS
Capital asset activities for the year ended December 31, 2024 are as follows:
January 1,Transfers and December 31,
Beginning Completed Ending
Balance Additions Deletions Construction Balance
Governmental activities
Nondepreciable capital assets
Land 17,359,078$ -$ -$ -$ 17,359,078$
Construction in progress 12,448,518 8,601,618 - (3,050,297) 17,999,839
Total capital assets, not depreciated 29,807,596 8,601,618 - (3,050,297) 35,358,917
Depreciable capital assets
Buildings and systems 106,414,327 404,980 - 2,732,140 109,551,447
Machinery and equipment 10,501,721 752,604 (252,264) 318,157 11,320,218
Total capital assets, depreciated 116,916,048 1,157,584 (252,264) 3,050,297 120,871,665
Less accumulated depreciation for
Buildings and systems (60,860,559) (3,437,136) - - (64,297,695)
Machinery and equipment (5,046,548) (678,177) 252,264 - (5,472,461)
Total accumulated depreciation (65,907,107) (4,115,313) 252,264 - (69,770,156)
Net capital assets, depreciated 51,008,941 (2,957,729) - 3,050,297 51,101,509
Total governmental activities 80,816,537$ 5,643,889$ -$ -$ 86,460,426$
Business-type activities
Nondepreciable capital assets
Land 867,010$ -$ -$ -$ 867,010$
Construction in progress 1,198,773 645,760 - (1,360,019) 484,514
Total capital assets, not depreciated 2,065,783 645,760 - (1,360,019) 1,351,524
Depreciable capital assets
Buildings and systems 107,306,862 327,507 - 1,360,019 108,994,388
Machinery and equipment 3,651,708 - - - 3,651,708
Total capital assets, depreciated 110,958,570 327,507 - 1,360,019 112,646,096
Less accumulated depreciation for
Buildings and systems (70,184,949) (2,422,243) - - (72,607,192)
Machinery and equipment (2,241,001) (139,042) - - (2,380,043)
Total accumulated depreciation (72,425,950) (2,561,285) - - (74,987,235)
Net capital assets, depreciated 38,532,620 (2,233,778) - 1,360,019 37,658,861
Total business-type activities 40,598,403$ (1,588,018)$ -$ -$ 39,010,385$
43
Notes to the Financial Statements CITY OF MONTICELLO
Depreciation for the year ended December 31, 2024 was charged to functions/programs as follows:
Governmental activities
General government 31,555$
Public safety 292,362
Public works 2,595,571
Recreation and culture 681,507
Capital assets held by the City’s internal service funds –
charged to the various functions based on usage of assets 514,318
Total depreciation expense – governmental activities 4,115,313$
Business-type activities
Water 483,768$
Sewer 1,189,075
Stormwater 442,026
Liquor 19,575
Fiber Optics 392,869
Deputy Registrar 33,972
Total depreciation expense – business-type activities 2,561,285$
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, 2024 are as follows:
Amount
Contract Paid Remaining
Fund Project Description Amount To-Date 12/31/2024
Capital Projects Downtown Roadway & Pedestrian Improvement Project 11,030,521$ 10,250,489$ 780,032$
7th St Retaining Wall & Sidewalk Project 2,840,173 2,651,373 188,800
Stormwater Stormwater Improvements 492,794 481,925 10,869
14,363,488$ 13,383,787$ 979,701$
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, 2024:
• General Obligation Bonds – The general obligation bond issues financed construction of a new
fire station and capital equipment purchases in the Capital Projects Funds.
• 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.
44
Notes to the Financial Statements CITY OF MONTICELLO
• 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 $244,705 for a percentage of revenues of 8.1%.
• PFA General Obligation Revenue Note – This note was issued for improvements to the
wastewater treatment plant and is payable primarily from user fees which benefit from the
improvements.
• Compensated Absences – The city provides vacation and sick or paid-time-off (PTO) leave
benefits to eligible employees. The liability will be repaid by the Benefit Accrual fund or respective
enterprise fund for which each employee is employed.
• Total OPEB Liability – The city provides post-employment benefits to certain eligible employees
through the city’s OPEB Plan. The liability will be repaid based on a pay-as-you-go financing
requirement from the General fund or applicable enterprise fund.
• Net Pension Liability – City employees participate in one state-wide, multiple-employer, defined
benefit pension plan administered by the Public Employees Retirement Association (PERA) per
Minnesota state statute. The liability reflects the city’s portion of the total net pension liability of
the PERA plan based on a percentage of contributions into the plan. The liability will be repaid
by the General fund or applicable enterprise fund.
Long-term liabilities at year-end are summarized as follows:
Final
Original Interest Maturity %DODQFH±
Issue Rate %Issue Date Date End of Year
Governmental activities
General obligation bonds
2019A General obligation bonds
CIP portion 5,350,000$ 2.00 - 2.30 %09/18/2019 12/15/2034 3,760,000$
equipment portion 1,290,000 2.00 09/18/2019 12/15/2028 605,000
Special assessments bonds
2015B General obligation bonds 2,605,000 1.50 - 3.00 11/01/2015 12/15/2030 1,155,000
2016A General obligation bonds 4,900,000 2.00 - 3.00 11/15/2016 12/15/2030 1,255,000
2017A General obligation bonds 2,040,000 2.00 - 2.50 10/24/2017 12/15/2027 660,000
2019A General obligation bonds 320,000 2.00 09/18/2019 12/15/2028 150,000
2020A General obligation bonds 2,155,000 0.45 - 2.00 09/09/2020 12/15/2030 1,340,000
Tax abatement bonds
2017A General obligation bonds 2,960,000 2.00 - 3.00 10/24/2017 12/15/2032 1,710,000
2018A General obligation bonds 5,000,000 3.00 - 3.38 10/23/2018 12/15/2032 3,120,000
2019A General obligation bonds 1,040,000 2.00 - 2.20 09/18/2019 12/15/2032 675,000
Compensated absences payable 357,457
Total governmental activities 14,787,457$
Business-type activities
General obligation revenue bonds
2013B Wastewater treatment bonds 3,000,000$ 2.00 - 3.35 %12/01/2013 12/01/2028 910,000$
Public Facility Authority G.O.
Sewer revenue note (2015A)2,214,632 1.06 08/26/2015 08/20/2035 1,270,000
Compensated absences payable 92,110
Total business-type activities 2,272,110$
45
Notes to the Financial Statements CITY OF MONTICELLO
B. Changes in Long-Term Liabilities
January 1,December 31,Due Within
2024 Additions Retirements 2024 One Year
Governmental activities
General obligation bonds 4,905,000$ -$ (540,000)$ 4,365,000$ 490,000$
Special assessment bonds 5,680,000 - (1,120,000) 4,560,000 1,145,000
Tax abatement bonds 6,110,000 - (605,000) 5,505,000 625,000
Compensated absences*334,687 22,770 - 357,457 306,085
Total governmental activities 17,029,687$ 22,770$ (2,265,000)$ 14,787,457$ 2,566,085$
Business-type activities
General obligation
revenue bonds 1,120,000$ -$ (210,000)$ 910,000$ 215,000$
PFA revenue note 1,378,000 - (108,000) 1,270,000 109,000
Compensated absences*105,622 - (13,512) 92,110 78,435
Total business-type activities 2,603,622$ -$ (331,512)$ 2,272,110$ 402,435$
Component Unit activities
Compensated absences*14,875$ 1,171$ -$ 16,046$ 14,441$ *The change in compensated absences liability is presented as a net change.
C. Minimum Debt Payments
Minimum annual principal and interest payments to maturity for bonds payable are as follows:
Year Ending
December 31,Principal Interest Principal Interest Principal Interest Principal Interest Principal Interest
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 370,000 50,318 490,000 20,700 695,000 86,248 - - 114,000 8,770
2030 - 2034 1,975,000 133,440 510,000 10,600 2,210,000 136,970 - - 589,000 25,395
2035 - - - - - - - - 122,000 1,297
4,365,000$ 487,028$ 4,560,000$ 291,543$ 5,505,000$ 746,483$ 910,000$ 74,190$ 1,270,000$ 82,436$
Business-Type Activities
PFA Revenue Note
Governmental Activities
General Obligation BondsGeneral Obligation Bonds Tax Abatement Bonds
Special
Assessment Bonds
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, 2024, the city’s legal debt
margin was $75,362,509. The statutes provide that debt issues supported by tax increment, special
assessment revenues or available dedicated reserves are excluded from the total limited debt.
E. Conduit Debt
From time to time, the city has issued bonds or notes to provide financial assistance to private sector
entities for the acquisition and construction of housing or commercial facilities deemed to be in the public
interest. The bonds or notes are secured by the property financed and are payable solely from payments
received on the underlying mortgage loans or leases. Upon repayment of the bonds, ownership of the
acquired facilities transfers to the private sector entity served by the bond issuance. The city is not
obligated in any manner for repayment of the bonds or notes. Accordingly, the bonds are not reported as
liabilities in the accompanying financial statements. No new conduit debt was issued in 2024.
Entity Description Issue Date Original Issue Current Balance
Swan River 2017A and 2017B Educational
Facilities Revenue Notes 10/2/2017 2,225,000$ 1,605,177$
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.
46
Notes to the Financial Statements CITY OF MONTICELLO
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 th e 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, 2024 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.
Name Purpose
1-40
Briggs
47-unit rental housing facility
with affordability component
Amount of
taxes abated
during the fiscal
Outstanding
principal balance
at year-end
Date of
required
decertification
68,415$ 749,935$ 12/31/2045
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, 2024, there are no
arbitrage rebates owed.
47
Notes to the Financial Statements CITY OF MONTICELLO
I. Revenue Pledged
Future revenue pledged for the payment of long-term debt is as follows:
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 42%58%
Term of pledge 2013-2028 2015-2035
Remaining principal & interest 984,190$ 1,352,436$
Current year
Principal and interest paid 244,375$ 122,648$
Pledged revenue received 1,328,275$ 1,834,285$
Description
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. When a member is “vested,” they have earned enough service credit to
receive a lifetime monthly benefit after leaving public service and reaching an eligible retiremen t age.
Members who retire at or over their Social Security full retirement age with at least one year of service
qualify for a retirement benefit.
General Employees Plan Benefits
General Employees Plan requires three years of service to vest. Benefits are based on a member’s
highest average salary for any five successive years of allowable service, age, and years of credit at
termination of service. Two methods are used to compute benefits for General Plan members. Members
hired prior to July 1, 1989, receive the higher of the Step or Level formulas. Only the Level formula is
used for members hired after June 30, 1989. Under the Step formula, General Plan members receive
1.2% of the highest average salary for each of the first 10 years of service and 1.7 % for each additional
year. Under the Level formula, General Plan members receive 1.7% of highest average salary for all
years of service. For members hired prior to July 1, 1989 a full retirement benefit is available when age
plus years of service equal 90 and normal retirement age is 65. Members can receive a reduced
requirement benefit as early as age 55 if they have three or m ore years of service. Early retirement
benefits are reduced by 0.25% for each month under age 65. Members with 30 or more years of service
can retire at any age with a reduction of 0.25% for each month the member is younger than age 62. The
Level formula allows General Plan members to receive a full retirement benefit at age 65 if they were first
hired before July 1, 1989 or at age 66 if they were hired on or after July 1, 1989. Early retirement begins
at age 55 with an actuarial reduction applied to the be nefit.
48
Notes to the Financial Statements CITY OF MONTICELLO
Benefit increases are provided to benefit recipients each January. The postretirement increase is equal
to 50% of the cost-of-living adjustment (COLA) announced by the SSA, with a minimum increase of at
least 1% and a maximum of 1.5%. The 2024 annual increase was 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 mont h
but less than a full year as of the June 30 before the effective date of the increase will receive a prorated
increase.
C. Contributions
Minnesota Statutes chapters 353, 353E, 353G and 356 set the rates for employer and employee
contributions. Contribution rates can only be modified by the state Legislature.
General Employees Fund Contributions
Coordinated Plan members were required to contribute 6.50% of their annual covered salary in fiscal
year 2024, 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, 2024, were $415,693.
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, 2024, the city reported a liability of $2,335,573 for its proportionate share of the
General Employees Fund’s net pension liability. Of that liability $2,270,278 was for the primary
government and $65,295 was for the EDA. 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
$60,393.
The net pension liability was measured as of June 30, 202 4, and the total pension liability used to
calculate the net pension liability was determined by an actuarial valuation as of that date . The city’s
proportionate share of the net pension liability was based on the city’s contributions received by PERA
during the measurement period for employer payroll paid dates from July 1, 2023, through June 30, 2024,
relative to the total employer contributions received from all PERA’s participating employers. The city’s
proportionate share was 0.0632% at the end of the measurement period and 0.0629% for the beginning
of the period.
For the year ended December 31, 2024, the city recognized pension expense of $259,267 for its
proportionate share of the General Employees Fund’s pension expense, and the EDA recognized $7,457.
In addition, the city recognized an additional $1,574 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 $45 to the EDA’s Employees Fund’s.
As of December 31, 2024, the city reported its proportionate share of the General Employees Plan’s
deferred outflows of resources and deferred inflows of resources related to pensions from the following
sources:
Deferred Outflows Deferred Inflows Deferred Outflows Deferred Inflows
of Resources of Resources of Resources of Resources
Differences between expected and
actual economic experience 212,856$ -$ 6,122$ -$
Changes in actuarial assumptions 10,791 856,521 310 24,634
Net collective difference between
projected and actual investment earnings - 630,879 - 18,144
Changes in proportion 34,446 - 991 -
Contributions paid to PERA subsequent
to the measurement date 204,014 - 5,868 -
Total 462,107$ 1,487,400$ 13,291$ 42,778$
Primary Government Component Unit - EDA
49
Notes to the Financial Statements CITY OF MONTICELLO
$209,882 reported as deferred outflows of resources related to pensions resulting from the city and
component unit’s contributions subsequent to the measurement date will be recognized as a reduction of
the net pension liability in the year ended December 31, 2025.
Other amounts reported as deferred outflows and deferred inflows of resources related to pensions,
excluding the contributions subsequent to the measurement date, will be recognized in pension expense
as follows:
Year ended Primary Component
December 31, Government Unit - EDA
2025 (647,634)$ (18,626)$
2026 (129,836) (3,734)
2027 (277,833) (7,991)
2028 (174,004) (5,004)
(1,229,307)$ (35,355)$
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:
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
F. Actuarial Methods and Assumptions
The total pension liability for each of the cost-sharing defined benefit plans was determined by an actuarial
valuation as of June 30, 2024, using the entry age normal actuarial cost method. The long -term rate of
return on pension plan investments used to determine the total liability is 7.0%. The 7.0% assumption is
based on a review of inflation and investment return assumptions from a number of national investment
consulting firms. The review provided a range of investment return rates considered reasonab le by the
actuary. An investment return of 7.0% is within that range.
Inflation is assumed to be 2.25% for the General Employees Plan. Benefit increases after retirement are
assumed to be 1.25% for the General Employees Plan.
Salary growth assumptions in the General Employees Plan range in annual increments from 10.25% after
one year of service to 3.0% after 27 years of service.
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 General
Employees Plan was last reviewed in 2022. The assumption changes were adopted by the board and
became effective with the July 1, 2023 actuarial valuation.
50
Notes to the Financial Statements CITY OF MONTICELLO
The following changes in actuarial assumptions and plan provisions occurred in 2024:
• Changes in Actuarial Assumptions:
o Rates of merit and seniority were adjusted, resulting in slightly higher rates.
o Assumed rates of retirement were adjusted as follows: increase the rate of assumed
unreduced retirements, slight adjustments to Rule of 90 retirement rates, and slight
adjustments to early retirement rates for Tier 1 and Tier 2 members.
o Minor increase in assumed withdrawals for males and females.
o Lower rates of disability.
o Continued use of Pub-2010 general mortality table with slight rate adjustments as
recommended in the most recent experience study.
o Minor changes to form of payment assumptions for male and female retirees.
o Minor changes to assumptions made with respect to missing participant data. The
investment return assumption and single discount rate were changed from 6.5 % to
7.0%.
• Changes in Plan Provisions:
o The workers’ compensation offset for disability benefits was eliminated. The actuarial
equivalent factors updated to reflect the changes in assumptions.
G. Discount Rate
The discount rate used to measure the total pension liability in 2024 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 rates set in Minnesota Statutes. Based on these assumptions, the fiduciary net position
of the General Employees 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 for all plans it participates
in, calculated using the discount rate disclosed in the preceding paragraph, as well as what the city’s
proportionate share of the net pension liability would be if it were calculated using a discount rate one
percentage point lower or one percentage point higher than the current discount rate:
1% Decrease Discount 1% Increase
(6.0%)Rate (7.0%)(8.0%)
General Employees Fund
Primary Government 6,072,017$ 2,270,278$ 1,261,035$
Component Unit - EDA 150,365 65,295 31,228
Total 6,222,382$ 2,335,573$ 1,292,263$
City Proportionate Share of NPL
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.
51
Notes to the Financial Statements CITY OF MONTICELLO
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 2024 were:
Required
Employee Employer Employee Employer Rate
1,080$ 1,080$ 5.00% 5.00% 5.00%
Contribution Amount % of Covered Payroll
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, 2024, 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 $5,300 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 $5,300 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.
52
Notes to the Financial Statements CITY OF MONTICELLO
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 $181,116 in fire state aid to the plan on behalf of the city fire department for the year ended
December 31, 2024, which was recorded as a deferred outflow of resources because the city records the
FRA pension activity as of December 31, 2023. 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, 2024 were $181,116. The city’s contributions were equal to the required contributions as
set by state statute. The city made no voluntary contributions to the plan. Furthermore, the members
have no obligation to contribute to the plan.
D. Actuarial Assumptions
The total pension liability as of December 31, 2024 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.
Benefit increases 2.00% per year
Cost of living increases 2.70% per year
Investment rate of return 4.72%
Fidelity Corporate Bond AA Index 4.87%
E. Pension Costs
As of December 31, 2024, the city reported a net pension asset of $191,579 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, 2023. For the year ended December 31, 2024, the Fire Department
recognized a pension expense of $181,116.
As of December 31, 2024, the city reported deferred outflows/inflows of resources as follows:
Deferred Deferred
Outflows Inflows
of Resources of Resources
Differences between expected and
actual economic experience 201,922$ 352,533$
Changes in actuarial assumptions 38,816 36,401
Net difference between projected
and actual investment earnings 49,052 -
Contributions paid to FRA subsequent
to the measurement date 181,116 -
470,906$ 388,934$
53
Notes to the Financial Statements CITY OF MONTICELLO
Amounts reported as deferred outflows and inflows of resources related to pensions will be recognized
in pension expense as follows:
Pension
Year ended Expense
December 31, Amount
2024 (5,150)$
2025 12,009
2026 23,133
2027 (34,682)
2028 (13,435)
Thereafter (81,019)
(99,144)$
The 4.72% long-term expected rate of return on pension plan investments was determined using a
building-block method in which best estimates for expected future real rates of return (expected returns,
net of inflation) were developed for each asset class using the plan’s target investment allocation along
with long-term return expectations by asset class. Inflation expectations were applied to derive the
nominal rate of return for the portfolio.
The target allocation and best estimates of arithmetic real rates of return for each major asset class are
summarized in the following table:
Long-term
Target Expected Real
Allocation Rate of Return
Cash 1.2%-0.02%
Mutual funds 98.8%2.95%
100.0%
Asset Class
54
Notes to the Financial Statements CITY OF MONTICELLO
F. Changes in the Net Pension Liability (Asset)
Total Plan Net Pension
Pension Fiduciary Liability
Liability (TPL) Net Position (Asset)
(a)(b)(a-b)
Beginning balance 12/31/2023 1,607,907$ 1,427,149$ 180,758$
Changes for the year
Service cost 93,442 - 93,442
Interest on total pension liability 73,241 - 73,241
Change in TPL due to changes in
benefit terms 39,864 - 39,864
Differences between actual and expected
experience in measurement of TPL (215,371) - (215,371)
Effect on TPL of changes in assumptions
for the future
Economic assumptions (34,098) (34,098)
Contributions from employer - 161,446 (161,446)
Supplemental benefits reimbursed - 2,000 (2,000)
Net investment income - 172,398 (172,398)
Benefit payments (205,836) (205,836) -
Administrative expenses - (6,429) 6,429
Ending balance 12/31/2024 1,359,149$ 1,550,728$ (191,579)$
G. Discount Rate
The discount rate used to measure the total pension liability was 4.72%. 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 (asset) for the FRA plan, calculated using the discount rate
disclosed in the preceding paragraph, as well as what the city’s net pension (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:
1% Decrease 1% Increase
In Discount Discount In Discount
Rate (3.72%) Rate (4.72%) Rate (5.72%)
Net Pension (Asset)(275,765)$ (191,579)$ (90,516)$
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.
55
Notes to the Financial Statements 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 $7,624.
D. Membership
Membership in the plan consisted of the following as of the latest actuarial valuation:
Primary Component
Government Unit - EDA Total
Retirees and beneficiaries receiving benefits 1 - 1
Active plan members 37 1 38
Total members 38 1 39
E. Total OPEB Liability of the City
The city’s total OPEB liability of $143,094 as of year-end was measured as of January 1, 2024 and was
determined by an actuarial valuation as of January 1, 2023.
56
Notes to the Financial Statements CITY OF MONTICELLO
F. Actuarial Assumption
The total OPEB liability was determined by an actuarial valuation as of January 1, 20 24, using the
following actuarial assumptions, applied to all periods included in the measurement, unless otherwise
specified:
Discount rate 2.00%
20-year municipal bond yield 2.00%
Inflation rate 2.00%
Salary increases 3.00%
6.5% grading to 5.0% over 6 years,
then to 4.0% over 48 yearsMedical trend rate
The actuarial assumptions used in the latest valuation were based on those used to value pension
liabilities for Minnesota city employees. The state pension plans base their assumptions on periodic
experience studies. Economic assumptions are based on input from a variety of published sources of
historical and projected future financial data. Each assumption was reviewed for reasonableness with the
source information as well as for consistency with the other economic assumptions.
Since the plan is not funded by an irrevocable trust, the discount rate is equal to the 20 -year municipal
bond yield rate of 2.00%, which was set by considering published rate information for 20-year high quality,
tax-exempt, general obligation municipal bonds as of the measurement date.
Mortality rates were based on the Pub-2010 Public Retirement Plans General Headcount-Weighted
Mortality Tables with MP-2020 Generational Improvement Scale.
Future retirees electing coverage is assumed to be 50% with 30% of those electing family coverage.
G. Changes in the Total OPEB Liability
Primary Component Total OPEB
Government Unit - EDA Liability
Beginning balance 133,691$ 1,881$ 135,572$
Changes for the year
Service cost 9,303 191 9,494
Interest 5,539 113 5,652
Benefit payments – employer financed (7,472) (152) (7,624)
7,370 152 7,522
Ending balance 141,061$ 2,033$ 143,094$
Assumption changes since the prior measurement date include the following:
x The health care trend rates were changed to better anticipate short term and long-term medical
increases.
x 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.
x The inflation rate was changed from 2.00% to 2.50%.
x The discount rate was changed from 2.00% to 4.00%.
57
Notes to the Financial Statements CITY OF MONTICELLO
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:
1% Decrease in Discount 1% Increase in
Discount Rate Rate Discount Rate
OPEB discount rate 1.00%2.00%3.00%
Primary Government $148,070 $141,061 $130,035
Component Unit - EDA 4,579 2,033 4,022
Discount Sensitivity
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:
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 $124,700 $141,061 $155,378
Component Unit - EDA 3,857 2,033 4,806
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 ($16,966). As of year-end, the city
reported deferred outflows of resources and deferred inflows of resources related to OPEB from the
following sources:
Deferred Deferred Deferred Deferred
Outflows Inflows Outflows Inflows
of Resources of Resources of Resources of Resources
Liability gains 2,067$ 39,905$ 64$ 1,234$
Assumption changes 66 10,154 2 314
Benefit payments after the measurement date 10,799 - 334 -
Total 12,932$ 50,059$ 400$ 1,548$
Primary Government Component Unit - EDA
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:
Year Ending Primary Component
December 31, Government Unit - EDA
2025 (31,139)$ (963)$
2026 (4,888) (151)
2027 (5,952) (184)
2028 (5,947) (184)
2028 - -
(47,926)$ (1,482)$
58
Notes to the Financial Statements CITY OF MONTICELLO
NOTE 11. FUND BALANCES
As of December 31, 2024, a summary of the city’s governmental fund balance classifications are as
follows:
Component Unit
Total Economic
Community Debt Capital Nonmajor Governmental Development
General Center Service Projects Funds Funds Authority
Nonspendable
Prepaid items 127,033$ 32,260$ -$ -$ 283$ 159,576$ 3,511$
Lease receivable 41,856 - - - - 41,856 -
Total nonspendable 168,889 32,260 - - 283 201,432 3,511
Restricted
Debt service - - 474,295 - - 474,295 -
Economic development - - - - 984,152 984,152 1,379,538
Cemetery maintenance - - - - 178,989 178,989 -
Park improvements - - - - 166,480 166,480 -
Tax increment - - - - - - 896,493
Total restricted - - 474,295 - 1,329,621 1,803,916 2,276,031
Assigned
Capital improvements - - - 9,430,170 2,092,620 11,522,790 -
Economic development - - - - - - 4,514,583
Community center operations - 304,462 - - - 304,462 -
Total assigned - 304,462 - 9,430,170 2,092,620 11,827,252 4,514,583
Unassigned 7,955,402 - - - - 7,955,402 -
Total 8,124,291$ 336,722$ 474,295$ 9,430,170$ 3,422,524$ 21,788,002$ 6,794,125$
NOTE 12. INTERFUND TRANSFERS
Interfund transfers for the year ended
December 31, 2024 are as follows:
Transfers In Transfers Out
Governmental funds
General -$ 1,200,000$
Community Center 100,000 -
Capital Projects 1,700,000 -
Total governmental funds 1,800,000 1,200,000
Enterprise funds
Liquor - 1,000,000
Deputy Registrar - 100,000
Total enterprise funds - 1,100,000
Internal service funds
Facilities Maintenance 500,000 -
2,300,000$ 2,300,000$
The following schedule reflects each fund transfer:
Transfers Out Amount
MCC Deputy Registrar 100,000$ (1)
Capital Projects Liquor 1,000,000 (2)
Capital Projects General Fund 700,000 (3)
Facilities Maintenance General Fund 500,000 (4)
Total 2,300,000$
(1)Transfer to provide funding support to Community
Center Operations
(2)Transfer to provide funding for Downtown Roadway &
Pedestrian Project.
(3)Transfer to allocate available fund reserves to future
projects costs
(4)Transfer to account for increased activity in centralized
Facilities Maintenance Department.
Transfers In
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, 2024 will not materially affect the financial condition of the city.
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.
59
Notes to the Financial Statements CITY OF MONTICELLO
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 c ouncil
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 deduct ibles.
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, 2024, 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 sew er services. The company’s water
purchases account for $115,799, or 5.5%, of Water Fund operating revenue; and the company’s sew er
charges account for $494,978, or 15.7%, of Sewer Fund operating revenue.
Additionally, Northern States Power Company’s (Xcel Energy) net tax capacity for property taxes payable
in 2024 is $14,228,188 or 37.3%, of the total net capacity of $38,106,152. Accordingly, Xcel Energy’s
share of the $13.07 million city property tax levy is $4.88 million. The tax capacity on January 1, 2024, is
based on market values certified to the state on January 1, 2023.
60
REQUIRED SUPPLEMENTARY
INFORMATION
CITY OF MONTICELLO
Required Supplementary Information
Schedule of Employer's Share and Non-Employer Proportionate Share of Net Pension Liability
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
(1)
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 $3,395,756 88.21%78.2%
2016 0.0588%4,774,268 62,387 4,836,655 3,651,024 130.77%68.9%
2017 0.0549%3,504,780 44,041 3,548,821 3,534,506 99.16%75.9%
2018 0.0550%3,051,175 100,077 3,151,252 3,697,145 82.53%79.5%
2019 0.0565%3,123,758 96,996 3,220,754 3,997,826 78.14%80.2%
2020 0.0568%3,405,420 104,919 3,510,339 4,048,023 84.13%79.1%
2021 0.0580%2,476,859 75,675 2,552,534 4,176,545 59.30%87.0%
2022 0.0615%4,870,820 142,791 5,013,611 4,608,333 105.70%76.7%
2023 0.0629%3,517,298 97,059 3,614,357 5,005,265 70.27%83.1%
2024 0.0632%2,335,573 119,406 2,454,979 5,337,627 43.76%89.1%
Schedule of Employer's Pension Contributions
Public Employees Retirement Association - General Employees Retirement Fund
Fiscal Year
Ending
December 31,
Statutorily
Required
Contributions
(a)
Contribution
Deficiency
(Excess)
(a-b)
(1)
Covered
Payroll
(c)
2015 266,042$ -$ 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
2024 415,693 - 5,542,573
(1) For purposes of this schedule, covered payroll is defined as "pensionable wages."
415,693 7.5%
287,700
308,216
304,809
7.5%
7.5%
7.5%
388,213 7.5%
363,693 7.5%
321,643 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
$266,042 7.5%
61
CITY OF MONTICELLO
Required Supplementary Information
Schedule of Changes in the Fire Relief Association's Net Pension Liability (Asset) and Related Ratios
2015 2016 2017 2018 2019 2020 2021 2022 2023 2024
Total pension liability
Service cost 77,343$ 79,730$ 66,097$ 71,325$ 69,774$ 69,921$ 111,407$ 111,576$ -$ 93,442$
Interest 41,888 44,224 49,857 49,897 50,829 43,168 40,329 50,536 - 73,241
Changes in benefit terms - 90,761 67,016 74,540 - - 207,898 - - 39,864
Experience gain/(loss)- (53,156) (30,666) 94,235 (148,892) (20,335) (18,598) 185,765 - (215,371)
Effect of changes in assumptions - - (10,673) - 8,770 - 44,564 - - (34,098)
Benefit payments, including refund of
member contributions (128,101) (1,168) (164,699) (121,900) (321,833) - - (199,527) - (205,836)
Net change in total pension liability (8,870) 160,391 (23,068) 168,097 (341,352) 92,754 385,600 148,350 - (248,758)
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 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$ 1,359,149$
Plan fiduciary net position
Contributions - State 120,027$ 123,656$ 125,764$ 130,874$ 122,639$ 128,638$ 134,691$ 146,181$ -$ 161,446$
Supplemental benefits reimbursements 2,000 - 2,000 1,000 5,068 - - 3,000 - 2,000
Net investment income (17,673) 55,902 126,579 (54,150) 172,359 139,820 110,486 (228,981) - 172,398
Benefit payments, including refund of
member contributions (128,101) (1,168) (164,699) (121,900) (321,833) - - (199,527) - (205,836)
Administrative expenses (3,532) (4,144) (4,331) (4,929) (5,204) (5,453) (5,508) (6,141) - (6,429)
Net change in plan fiduciary net position (27,279) 174,246 85,313 (49,105) (26,971) 263,005 239,669 (285,468) - 123,579
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 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$ 1,550,728$
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 (191,579)
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%114.1%
Covered employee payroll (1)N/A 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 (1)N/A 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) The Association is comprised of volunteers, therefore, there are no payroll expenditures (i.e., there are no covered employee payroll percentage calculations).
- - 123,656
2024 - - - 181,116
2022
2023 164,446
2019
2020
2021
146,181
128,638
134,691
122,639
- -
-
- -
-
-
-
Statutorily Required
Contributions
(a)
City Fiscal
Year Ending
December 31,
2015
2017
2018
-$
2016 -
Non-Employer Contribution -
State 2% Fire Aid
120,027$
125,764
130,874
-
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 2024
Total OPEB liability
Service cost 24,158$ 10,152$ 10,457$ 11,264$ 11,602$ 9,217$ 9,494$
Interest 9,998 10,347 5,210 5,726 3,378 3,466 5,652
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) (7,624)
Net change in total OPEB liability 28,218 (182,314) 13,627 19,832 7,296 (32,832) 7,522
Total OPEB liability - beginning 281,745 309,963 127,649 141,276 161,108 168,404 135,572
Total OPEB liability - ending 309,963$ 127,649$ 141,276$ 161,108$ 168,404$ 135,572$ 143,094$
Covered employee payroll 3,130,628$ 2,462,725$ 2,536,607$ 2,763,483$ 2,846,387$ 3,484,325$ 3,588,855$
Total OPEB liability as a percentage of covered
employee payroll 10%5%6%6%6%4%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, 2024
101
Original and Final Variance with
Budget Actual Final Budget
Revenues
Property taxes 8,664,500$ 8,685,314$ 20,814$
Franchise taxes 322,000 203,292 (118,708)
Special assessments 100 364 264
Licenses and permits 487,000 924,801 437,801
Intergovernmental 1,057,000 854,998 (202,002)
Charges for services 1,354,474 1,674,926 320,452
Fines and forfeitures 51,600 65,940 14,340
Investment earnings 66,426 424,236 357,810
Other revenues 753,900 875,009 121,109
Total revenues 12,757,000 13,708,880 951,880
Expenditures
Current
General government
Mayor and council 59,727 55,486 (4,241)
City administration 1,052,879 1,060,041 7,162
City clerk 277,222 286,124 8,902
Finance 681,352 703,998 22,646
Legal 30,000 38,742 8,742
Human resources 183,576 179,138 (4,438)
Planning and zoning 371,851 602,010 230,159
City hall 65,249 64,635 (614)
Public safety
Law enforcement 2,485,193 2,496,558 11,365
Fire and rescue 467,138 438,661 (28,477)
Fire relief 145,000 183,116 38,116
Building inspections 681,154 714,433 33,279
Emergency Management 22,000 11,173 (10,827)
Animal control 62,346 61,187 (1,159)
National Guard 19,500 18,754 (746)
Public works
Public works administration 169,738 157,709 (12,029)
Public works inspections 321,517 520,455 198,938
Streets and alleys 1,395,343 1,224,354 (170,989)
Ice and snow removal 488,959 253,930 (235,029)
Shop and garage 330,016 276,621 (53,395)
Street lighting 322,000 203,178 (118,822)
Sanitation
Refuse and recycling collection 880,557 911,886 31,329
Recreation and culture
Senior center 104,363 104,930 567
Park operations 1,576,051 1,542,782 (33,269)
Park ballfields 28,665 25,357 (3,308)
Shade tree 266,722 174,436 (92,286)
Public arts 174,903 154,517 (20,386)
Library 87,979 99,051 11,072
Total expenditures 12,751,000 12,563,262 (187,738)
Excess of revenues over expenditures 6,000 1,145,618 1,139,618
Other financing (uses)
Transfers out (6,000) (1,200,000) (1,194,000)
Net change in fund balance - (54,382) (54,382)
Fund balance at beginning of year 8,178,673 8,178,673 -
Fund balance at end of year 8,178,673$ 8,124,291$ (54,382)$
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, 2024
226
Original and Final Variance with
Budget Actual Final Budget
Revenues
Property taxes 525,000$ 525,000$ -$
Intergovernmental - 1,500 1,500
Charges for services 1,399,400 1,266,399 (133,001)
Investment earnings 1,600 19,254 17,654
Other revenues 32,000 50,374 18,374
Total revenues 1,958,000 1,862,527 (95,473)
Expenditures
Current
Recreation and culture
Operations 561,507 567,895 6,388
Rentals 8,379 4,033 (4,346)
Aquatics 263,792 354,442 90,650
Concessions & guest services 242,131 281,539 39,408
Maintenance 731,019 633,298 (97,721)
Programming 251,172 231,741 (19,431)
Capital outlay
Maintenance - 56,830 56,830
Programming - 39,930 39,930
Total expenditures 2,058,000 2,169,708 111,708
Other financing sources
Transfers in 100,000 100,000 -
Net change in fund balance - (207,181) (207,181)
Fund balance at beginning of year 543,903 543,903 -
Fund balance at end of year 543,903$ 336,722$ (207,181)$
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:
2024
Changes in Actuarial Assumptions
• The following changes in assumptions are effective with the July 1, 2024 valuation, as
recommended in the most recent experience study (dated June 29, 2023): Rates of merit and
seniority were adjusted, resulting in slightly higher rates. Assumed rates of r etirement were
adjusted as follows: increase the rate of assumed unreduced retirements, slight adjustments to
Rule of 90 retirement rates, and slight adjustments to early retirement rates for Tier 1 and Tier 2
members. Minor increase in assumed withdrawals for males and females. Lower rates of
disability. Continued use of Pub-2010 general mortality table with slight rate adjustments as
recommended in the most recent experience study. Minor changes to form of payment
assumptions for male and female retirees. Minor changes to assumptions made with respect to
missing participant data.
Changes in Plan Provisions
• The workers’ compensation offset for disability benefits was eliminated. The actuarial equivalent
factors updated to reflect the changes in assumptions.
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.
66
Notes to the Required Supplementary Information CITY OF MONTICELLO
2020
Changes in Actuarial Assumptions
• The price inflation assumption was decreased from 2.50% to 2.25%.
• The payroll growth assumption was decreased from 3.25% to 3.00%.
• Assumed salary increase rates were changed as recommended in the June 30, 2019 experience
study. The net effect is assumed rates that average 0.25% less than previous rates.
• Assumed rates of retirement were changed as recommended in the June 30, 2019 experience
study. The changes result in more unreduced (normal) retirements and slightly fewer Rule of 90
and early retirements.
• Assumed rates of termination were changed as recommended in the June 30, 2019 experience
study. The new rates are based on service and are generally lower than the previous rates for
years 2-5 and slightly higher thereafter.
• Assumed rates of disability were changed as recommended in the June 30, 2019 experience
study. The change results in fewer predicted disability retirements for males and females.
• The base mortality table for healthy annuitants and employees was changed from the RP -2014
table to the Pub-2010 General Mortality table, with adjustments. The base mortality table for
disabled annuitants was changed from the RP-2014 disabled annuitant mortality table to the
PUB-2010 General/Teacher disabled annuitant mortality table, with adjustments.
• The mortality improvement scale was changed from Scale MP-2018 to Scale MP-2019.
• The assumed spouse age difference was changed from two years older for females to one year
older.
• The assumed number of married male new retirees electing the 100% Joint & Survivor option
changed from 35% to 45%. The assumed number of married female new retirees electing the
100% Joint & Survivor option changed from 15% to 30%. The corresponding number of married
new retirees electing the Life annuity option was adjusted accordingly.
Changes in Plan Provisions
• Augmentation for current privatized members was reduced to 2.0% for the period July 1, 2020
through December 31, 2023 and 0.0% after. Augmentation was eliminated for privatizations
occurring after June 30, 2020.
2019
Changes in Actuarial Assumptions
• The mortality projection scale was changed from MP-2017 to MP-2018.
Changes in Plan Provisions
• The employer supplemental contribution was changed prospectively, decreasing from $31.0
million to $21.0 million per year. The State’s special funding contribution was changed
prospectively, requiring $16.0 million due per year through 2031.
2018
Changes in Actuarial Assumption
• The morality projection scale was changed from MP-2015 to MP-2017.
• The assumed benefit increase was changed from 1.00 % per year through 2044 and 2.50% per
year thereafter to 1.25% per year.
Changes in Plan Provisions
• The augmentation adjustment in early retirement factors is eliminated over a five-year period
starting July 1, 2019, resulting in actuarial equivalence after June 30, 2024.
• Interest credited on member contributions decreased from 4.00% to 3.00%, beginning July 1,
2018.
• Deferred augmentation was changed to 0.00%, effective January 1, 2019. Augmentation that
has already accrued for deferred members will still apply.
67
Notes to the Required Supplementary Information CITY OF MONTICELLO
• 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.
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.
68
Notes to the Required Supplementary Information CITY OF MONTICELLO
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
• 2024 – The discount rate increased from 3.57% to 4.72%. The benefit level was increased from
$5,100 to $5,300.
• 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.
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 decr eased 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%.
69
Notes to the Required Supplementary Information CITY OF MONTICELLO
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 counc il 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
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, 2024, expenditures exceeded appropriations in the Community
Center Fund by $111,708. The excess of expenditures was related to capital outlay anticipated in 2023
occurring in 2024, which was not budgeted. Additionally, bank charges were higher than expected.
Fund balance was used to fund the additional expenditures.
70
NONMAJOR GOVERNMENTAL
FUNDS
NONMAJOR GOVERNMENTAL FUNDS
SPECIAL REVENUE FUNDS are used to account for revenue derived from specific taxes or other
earmarked revenue sources (other than for major capital projects) that are restricted by law or
administrative action to expenditures for specified purposes.
Small Cities Development Program (SCDP) Fund - Established to account for the administration of
loans to local businesses while following state and federal guidelines.
Cemetery Fund – Established to account for the activities of cemetery operations at Riverside
Cemetery.
CAPITAL PROJECTS FUNDS are used to account for resources used for the acquisition and
construction of capital assets by the city, except for those financed by proprietary funds.
Street Lighting Improvement Fund – This fund was established to account for activities incorporating
street lighting into designated areas throughout the city. A portion of the city’s electric franchise fee is
the main revenue source for this fund.
Park & Pathway Improvement Fund – This fund was established to account for the accumulation of
unrestricted resources from other sources used for park and pathway improvements.
Park Dedication Fund – This fund was established to account for restricted fees collected from
developers for park land acquisition and for park and pathway improvements.
CITY OF MONTICELLO
Combining Balance Sheet
Nonmajor Governmental Funds
December 31, 2024
221 215 403 404 405
Small Cities Street
Development Lighting Park &Park
Program Cemetery Improvement Pathway Dedication Total
ASSETS
Cash and investments 893,845$ 179,689$ 1,376,403$ 737,745$ 166,480$ 3,354,162$
Receivables
Deferred special assessments - - - - 3,173 3,173
Accounts - - 1,115 - - 1,115
Prepaid items - 283 - - - 283
Notes receivable 90,307 - - - - 90,307
Total assets 984,152$ 179,972$ 1,377,518$ 737,745$ 169,653$ 3,449,040$
LIABILITIES
Accounts and contracts payable -$ 700$ -$ 22,643$ -$ 23,343$
DEFERRED INFLOWS OF RESOURCES
Unavailable revenue - special assessments - - - - 3,173 3,173
FUND BALANCES
Nonspendable - 283 - - - 283
Restricted
Economic development 984,152 - - - - 984,152
Cemetery maintenance - 178,989 - - - 178,989
Park improvements - - - - 166,480 166,480
Assigned for capital improvements - - 1,377,518 715,102 - 2,092,620
Total fund balances 984,152 179,272 1,377,518 715,102 166,480 3,422,524
Total liabilities, deferred inflows of
resources, and fund balances 984,152$ 179,972$ 1,377,518$ 737,745$ 169,653$ 3,449,040$
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, 2024
245
221 215 403 404 405
Small Cities 651 Street
Development Lighting Park &Park
Program Cemetery Improvement Pathway Dedication Total
Revenues
Franchise taxes -$ -$ 205,776$ -$ -$ 205,776$
Special assessments - - - - 779 779
Charges for services - 51,815 - - - 51,815
Investment earnings 42,062 7,999 65,510 38,676 7,555 161,802
Interest on loans 2,838 - - - - 2,838
Other revenues - - 5,236 2,714 - 7,950
Total revenues 44,900 59,814 276,522 41,390 8,334 430,960
Expenditures
Current
Recreation and culture - 28,753 - - - 28,753
Capital outlay
Public works - - 596,882 - - 596,882
Recreation and culture - - - 103,727 - 103,727
Total expenditures - 28,753 596,882 103,727 - 729,362
Net change in fund balance 44,900 31,061 (320,360) (62,337) 8,334 (298,402)
Fund balance at beginning of year 939,252 148,211 1,697,878 777,439 158,146 3,720,926
Fund balance at end of year 984,152$ 179,272$ 1,377,518$ 715,102$ 166,480$ 3,422,524$
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, 2024
704 703 702 701
Benefit Central IT Facilities
Accrual Equipment Services Maintenance Total
ASSETS
Current assets
Cash and investments 401,053$ 987,554$ 155,538$ 151,610$ 1,695,755$
Accounts receivable - - 2,400 - 2,400
Prepaid items - - 87,376 1,386 88,762
Total current assets 401,053 987,554 245,314 152,996 1,786,917
Noncurrent assets
Capital assets
Machinery and equipment - 5,851,718 308,399 - 6,160,117
Less accumulated depreciation - (2,262,421) (190,587) - (2,453,008)
Total noncurrent assets - 3,589,297 117,812 - 3,707,109
TOTAL ASSETS 401,053 4,576,851 363,126 152,996 5,494,026
LIABILITIES
Current liabilities
Accounts payable - 214 6,210 32,457 38,881
Due to other governmental units - - - 105 105
Compensated absences due within one year 303,973 - 1,015 1,097 306,085
Total current liabilities 303,973 214 7,225 33,659 345,071
Noncurrent liabilities
Compensated absences payable 51,137 - 113 122 51,372
TOTAL LIABILITIES 355,110 214 7,338 33,781 396,443
NET POSITION
Investment in capital assets - 3,589,297 117,812 - 3,707,109
Unrestricted 45,943 987,340 237,976 119,215 1,390,474
TOTAL NET POSITION 45,943$ 4,576,637$ 355,788$ 119,215$ 5,097,583$
73
CITY OF MONTICELLO
Combining Statement of Revenues, Expenses and Changes in Net Position
Internal Service Funds
For the Year Ended December 31, 2024
701
704 703 702 701
Benefit Central IT Facilities
Accrual Equipment Services Maintenance Total
Operating revenues
Charges to other funds 37,907$ 607,744$ 550,263$ 385,000$ 1,580,914$
Other revenues - 60,810 6,050 14,841 81,701
Total operating revenues 37,907 668,554 556,313 399,841 1,662,615
Operating expenses
Personal services 37,907 - 111,175 221,015 370,097
Materials and supplies - - 33,641 70,566 104,207
Other services and charges - 5,805 359,127 584,489 949,421
Depreciation - 470,824 43,494 - 514,318
Total operating expenses 37,907 476,629 547,437 876,070 1,938,043
Operating income (loss)- 191,925 8,876 (476,229) (275,428)
Nonoperating revenues (expenses)
Investment earnings 17,299 42,468 5,782 (831) 64,718
Interest expense - (2,854) - - (2,854)
Total nonoperating revenues (expenses)17,299 39,614 5,782 (831) 61,864
Income (loss) before transfers 17,299 231,539 14,658 (477,060) (213,564)
Transfers in - - - 500,000 500,000
Change in net position 17,299 231,539 14,658 22,940 286,436
Net position at beginning of year 28,644 4,345,098 341,130 96,275 4,811,147
Net position at end of year 45,943$ 4,576,637$ 355,788$ 119,215$ 5,097,583$
74
CITY OF MONTICELLO
Combining Statement of Cash Flows
Internal Service Funds
For the Year Ended December 31, 2024
704 703 702 701
Benefit Central IT Facilities
Accrual Equipment Services Maintenance Total
Cash flow from operating activities
Cash received from internal services provided 37,907$ 668,554$ 553,913$ 400,221$ 1,660,595$
Cash paid to suppliers for goods and services - (7,910) (413,192) (641,240) (1,062,342)
Cash paid to employees - - (110,872) (236,455) (347,327)
Net cash provided (used) by operating activities 37,907 660,644 29,849 (477,474) 250,926
Cash flows from noncapital financing activities
Transfers from other funds - - - 500,000 500,000
Cash flows from capital and related financing activities
Acquisition of capital assets - (747,001) - - (747,001)
Principal payments on long-term debt - (60,000) - - (60,000)
Interest and fiscal charges paid on long-term debt - (2,929) - - (2,929)
Net cash (used) by capital and related financing activities - (809,930) - - (809,930)
Cash flows from investing activities
Interest on investments 17,299 42,468 5,782 (831) 64,718
Increase (decrease) in cash and cash equivalents 55,206 (106,818) 35,631 21,695 5,714
Cash and cash equivalents - January 1 345,847 1,094,372 119,907 129,915 1,690,041
Cash and cash equivalents - December 31 401,053$ 987,554$ 155,538$ 151,610$ 1,695,755$
Reconciliation of operating income (loss) to net cash
provided by operating activities:
Operating income (loss)-$ 191,925$ 8,876$ (476,229)$ (275,428)$
Adjustments to reconcile operating income (loss) to
Net cash provided by operating activities:
Depreciation - 470,824 43,494 - 514,318
Changes in assets and liabilities:
(Increase) decrease in prepaid items - - (22,928) 106 (22,822)
(Increase) decrease in accounts receivable - - (2,400) 380 (2,020)
Increase (decrease) in accounts payable - - 2,504 13,704 16,208
Increase (decrease) in due to other government units - (2,105) - 5 (2,100)
Increase (decrease) in compensated absences 37,907 - 303 (15,440) 22,770
Net cash provided (used) by operating activities 37,907$ 660,644$ 29,849$ (477,474)$ 250,926$
Schedule of noncash capital and related financing activities:
Disposal of capital assets -$ 5,805$ -$ -$ 5,805$
Capital assets purchased on account -$ (34,326)$ -$ -$ (34,326)$
75
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76
OTHER SUPPLEMENTARY
SCHEDULES
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, 2024
221
Original and
Final Variance with
Budget Actual Final Budget
Revenues
Investment earnings 5,000$ 42,062$ 37,062$
Interest on loans 3,000 2,838 (162)
Total revenues 8,000 44,900 36,900
Fund balance at beginning of year 939,252 939,252 -
Fund balance at end of year 947,252$ 984,152$ 36,900$
77
CITY OF MONTICELLO
Schedule of Revenues, Expenditures and Changes in Fund Balance
Budget and Actual - Cemetery Fund
For the Year Ended December 31, 2024
215
Original and
Final Variance with
Budget Actual Final Budget
Revenues
Charges for services 41,700$ 51,815$ 10,115$
Investment earnings 300 7,999 7,699
Total revenues 42,000 59,814 17,814
Expenditures
Current
Recreation and culture
Cemetery operations 31,000 28,753 (2,247)
Net change in fund balance 11,000 31,061 20,061
Fund balance at beginning of year 148,211 148,211 -
Fund balance at end of year 159,211$ 179,272$ 20,061$
78
CITY OF MONTICELLO
Schedule of Assets, Liabilities, Deferred Inflows of Resources and Fund Balances
Debt Service Activities
December 31, 2024
319 320 321 322 323 324
2015B 2016A 2017A 2018A 2019A 2020A
Bonds Bonds Bonds Bonds Bonds Bonds Total
ASSETS
Cash and cash equivalents 89,683$ 72,660$ 61,066$ 77,326$ 68,452$ 105,999$ 475,186$
Receivables
Unremitted special assessments - 806 - - - 1,003 1,809
Delinquent special assessments - 1,319 315 - - 3,418 5,052
Deferred special assessments 17,195 114,131 87,460 - 40,920 549,232 808,938
Total assets 106,878$ 188,916$ 148,841$ 77,326$ 109,372$ 659,652$ 1,290,985$
LIABILITIES
Accounts and contracts payable 450$ 450$ 450$ 450$ 450$ 450$ 2,700$
DEFERRED INFLOWS OF RESOURCES
Unavailable revenue - special assessments 17,195 115,450 87,775 - 40,920 552,650 813,990
FUND BALANCES
Restricted for debt service 89,233 73,016 60,616 76,876 68,002 106,552 474,295
Total liabilities, deferred inflows
of resources, and fund balances 106,878$ 188,916$ 148,841$ 77,326$ 109,372$ 659,652$ 1,290,985$
79
CITY OF MONTICELLO
Schedule of Revenues, Expenditures and Changes in Fund Balance
Debt Service Activities
For the Year Ended December 31, 2024
319 320 321 322 323 324
2015B 2016A 2017A 2018A 2019A 2020A
Bonds Bonds Bonds Bonds Bonds Bonds Total
Revenues
Property taxes 165,223$ 357,979$ 326,842$ 439,337$ 711,964$ 24,830$ 2,026,175$
Special assessments 19,000 75,003 37,280 - 12,788 139,372 283,443
Investment earnings 6,038 9,823 8,330 3,678 3,125 12,781 43,775
Total revenues 190,261 442,805 372,452 443,015 727,877 176,983 2,353,393
Expenditures
Debt service
Principal 175,000 490,000 400,000 340,000 590,000 210,000 2,205,000
Interest and fiscal charges 38,200 38,300 69,790 107,988 123,788 23,968 402,034
Total expenditures 213,200 528,300 469,790 447,988 713,788 233,968 2,607,034
Net change in fund balance (22,939) (85,495) (97,338) (4,973) 14,089 (56,985) (253,641)
Fund balance at beginning of year 112,172 158,511 157,954 81,849 53,913 163,537 727,936
Fund balance at end of year 89,233$ 73,016$ 60,616$ 76,876$ 68,002$ 106,552$ 474,295$
80
DISCRETELY PRESENTED COMPONENT UNIT -
ECONOMIC DEVELOPMENT AUTHORITY
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81
Schedule of Assets, Liabilities, Deferred Inflows of Resources and Fund Balances
Discretely Presented Component Unit - Economic Development Authority
December 31, 2024
TIF 6 (d)TIF 19 (d)TIF 20 (d)TIF 22 (d)TIF 24
EDA General GMEF TIF Future Raindance MS Shores Prairie West Downtown St. Henry's
ASSETS
Cash and investments 1,731,171$ 682,833$ -$ 112,601$ 37,719$ 104,142$ 248,445$ 115,764$
Receivables
Unremitted taxes 3,503 - - - - - - -
Delinquent taxes 3,465 - - - - - - -
Accounts 8,142 - - - - - - -
Intrafund receivable 109,779 - - 687,248 - - - -
Prepaid items 3,511 - - - - - - -
Notes receivable 127,246 574,965 - - - - - -
Land held for resale 2,759,929 - - - - - 163,200 -
Total assets 4,746,746$ 1,257,798$ -$ 799,849$ 37,719$ 104,142$ 411,645$ 115,764$
LIABILITIES
Accounts and contracts payable 3,462$ -$ -$ -$ -$ -$ -$ -$
Due to other governmental units 168 - - - - - - -
Intrafund payable - - 58,563 - - - - -
Unearned revenue - - - - - - 163,200 -
Escrow deposits 41,254 - - - - - - -
Total liabilities 44,884 - 58,563 - - - 163,200 -
DEFERRED INFLOWS OF RESOURCES
Unavailable revenue - property taxes 3,465 - - - - - - -
Total deferred inflows of resources 3,465 - - - - - - -
FUND BALANCES
Nonspendable 3,511 - - - - - - -
Restricted 121,740 1,257,798 - 799,849 37,719 104,142 248,445 115,764
Assigned
Economic Development 4,440,656 - (58,563) - - - - -
Façade Grant 132,490 - - - - - - -
Total fund balance 4,698,397 1,257,798 (58,563) 799,849 37,719 104,142 248,445 115,764
Total liabilities, deferred inflows of
resources, and fund balances 4,746,746$ 1,257,798$ -$ 799,849$ 37,719$ 104,142$ 411,645$ 115,764$
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
82
CITY OF MONTICELLO
TIF 29 TIF 30 TIF 34 (d)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
76,360$ 82,257$ 77,340$ 21,049$ 32,930$ -$ -$ -$ 3,148$ -$ 3,325,759$
- - - - - - - - - - 3,503
- - - - - - - - - - 3,465
- - - - - - - - - - 8,142
- - - - - - - - - (797,027) -
- - - - - - - - - - 3,511
- - - - - - - - - - 702,211
- - - - - - - - - - 2,923,129
76,360$ 82,257$ 77,340$ 21,049$ 32,930$ -$ -$ -$ 3,148$ (797,027)$ 6,969,720$
-$ -$ -$ -$ -$ -$ 127,246$ -$ -$ -$ 130,708$
- - - - - - - - - - 168
- 49,331 - - 687,248 431 431 431 592 (797,027) -
- - - - - - - - - (163,200) -
- - - - - - - - - - 41,254
- 49,331 - - 687,248 431 127,677 431 592 (960,227) 172,130
- - - - - - - - - - 3,465
- - - - - - - - - - 3,465
- - - - - - - - - - 3,511
76,360 32,926 77,340 21,049 (654,318) (431) (127,677) (431) 2,556 163,200 2,276,031
- - - - - - - - - - 4,382,093
- - - - - - - - - - 132,490
76,360 32,926 77,340 21,049 (654,318) (431) (127,677) (431) 2,556 163,200 6,794,125
76,360$ 82,257$ 77,340$ 21,049$ 32,930$ -$ -$ -$ 3,148$ (797,027)$ 6,969,720$
12/31/2029 12/31/2029 12/31/2022 12/31/2045 12/31/2030 12/31/2050 12/31/2050 12/31/2050 12/31/2032
Housing Housing Redevelopment Housing Economic Housing Housing Redevelopment Economic
Development Development
Total fund balances - Economic Development Authority 6,794,125$
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.3,465
Noncurrent liabilities are not due and payable in the current period and,
therefore, are not reported as liabilities in the fund.
Compensated absences (16,046)
Total OPEB liability (4,293)
Net pension liability (65,295)
Governmental funds do not report long-term amounts related to pensions
and other post-employment benefits.
Deferred outflows of other post-employment benefits resources 400
Deferred outflows of pension resources 13,291
Deferred inflows of other post-employment benefits resources (1,548)
Deferred inflows of pension resources (42,778)
Total net position - governmental activities 6,681,321$
83
Schedule of Revenues, Expenditures and Changes in Fund Balance
Discretely Presented Component Unit - Economic Development Authority
For the Year Ended December 31, 2024
TIF 6 (d)TIF 19 (d)TIF 20 (d)TIF 22 (d)TIF 24
EDA General GMEF TIF Future Raindance MS Shores Prairie West Downtown St. Henry's
Revenues
Property taxes 460,343$ -$ -$ -$ -$ -$ -$ -$
Tax increments - - - - - - - 60,156
Intergovernmental 294,248 - - - - - - -
Charges for services 19,246 - - - - - - -
Investment earnings 159,232 - - - - - - -
Interest on loans 3,232 10,541 - 21,554 - - - -
Other revenues 17,054 - - - - - - -
Total revenues 953,355 10,541 - 21,554 - - - 60,156
Expenditures
Current
Salary and wages 139,850 - - - - - - -
Benefits 42,895 - - - - - - -
Professional services - legal 32,933 - - - - - - 161
Professional services - other 42,830 - 13,200 - - - 1,200 -
LPV Insurance 4,259 - - - - - - -
Legal and general publications 1,477 - - - - - - 31
Marketing 18,351 - - - - - - -
Dues and membership 7,416 - - - - - - -
Utilities 3,442 - - - - - - -
IT services 3,353 - - - - - - -
Travel and conferences 1,182 - - - - - - -
Land adjustment to market 490,672 - - - - - - -
Other expenditures 443,567 - - - - - - -
Excess increments - - - - - - 269,641 -
Interest on intrafund loans - - - - - - - -
PAYG payments to third parties - - - - - - - -
Total expenditures 1,232,227 - 13,200 - - - 270,841 192
Net change in fund balances (278,872) 10,541 (13,200) 21,554 - - (270,841) 59,964
Fund balance at beginning of year 4,977,269 1,247,257 (45,363) 778,295 37,719 104,142 519,286 55,800
Fund balance at end of year 4,698,397$ 1,257,798$ (58,563)$ 799,849$ 37,719$ 104,142$ 248,445$ 115,764$
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 (d)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
-$ -$ -$ -$ -$ -$ -$ -$ -$ -$ 460,343$
41,737 20,606 - 76,017 64,441 - - - 3,148 - 266,105
- - - - - - - - - - 294,248
- - - - - - - - - - 19,246
- - - - - - - - - - 159,232
- - - - - - - - - (24,786) 10,541
- - - - - - - - - - 17,054
41,737 20,606 - 76,017 64,441 - - - 3,148 (24,786) 1,226,769
- - - - - - - - - - 139,850
- - - - - - - - - - 42,895
- - - - - - - - 115 - 33,209
- - - - - - - - - - 57,230
- - - - - - - - - - 4,259
31 31 - 31 31 31 31 31 77 - 1,802
- - - - - - - - - - 18,351
- - - - - - - - - - 7,416
- - - - - - - - - - 3,442
- - - - - - - - - - 3,353
- - - - - - - - - - 1,182
- - - - - - - - - - 490,672
- - - - - - - - - - 443,567
- - - - - - - - - - 269,641
- 3,232 - - 21,554 - - - - (24,786) -
- - - 68,415 - - - - - - 68,415
31 3,263 - 68,446 21,585 31 31 31 192 (24,786) 1,585,284
41,706 17,343 - 7,571 42,856 (31) (31) (31) 2,956 - (358,515)
34,654 15,583 77,340 13,478 (697,174) (400) (127,646) (400) (400) 163,200 7,152,640
76,360$ 32,926$ 77,340$ 21,049$ (654,318)$ (431)$ (127,677)$ (431)$ 2,556$ 163,200$ 6,794,125$
12/31/2029 12/31/2029 12/31/2022 12/31/2045 12/31/2030 12/31/2050 12/31/2050 12/31/2050 12/31/2032
Housing Housing Redevelopment Housing Economic Housing Housing Redevelopment Economic
Development Development
Net change in fund balances - Economic Development Authority (358,515)$
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.(7,608)
Long-term pension activity is not reported in governmental funds.
Pension expense (9,707)
Pension revenue 3,050
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 (3,195)
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.(1,171)
Change in net position - governmental activities (377,146)$
85
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86
STATISTICAL SECTION
STATISTICAL SECTION
Financial trends
Net Position by Component - Last Ten Fiscal Years 87
Changes in Net Position - Last Ten Fiscal years 88
General Governmental Tax Revenues by Source - Last Ten Fiscal Years 90
Fund Balances of Governmental Funds - Last Ten Fiscal Years 91
Changes in Fund Balances of Governmental Funds - Last Ten Fiscal Years 92
Governmental Funds Tax Revenues by Source - Last Ten Fiscal Years 93
Revenue capacity
Tax Capacity Value and Estimated Market Value of Taxable Property - Last Ten Fiscal Years 94
Property Tax Rates - All Direct and Overlapping Governments - Last Ten Fiscal Years 95
Property Tax Levies and Collections - Last Ten Fiscal Years 96
Principal Property Taxpayers - Current Year and Nine Years Ago 97
New Construction and Bank Deposits - Last Ten Fiscal Years 98
Water Sold by Customer Type - Last Ten Fiscal Years 99
Water and Sewer Utility Rates - Last Ten Fiscal Years 100
Debt capacity
101
102
103
104
Ratios of Outstanding Debt by Type - Last Ten Fiscal Years
Ratios of Net General Obligation Bonded Debt Outstanding - Last Ten Fiscal Years
Legal Debt Margin Information - Last Ten Fiscal Years
Computation of Direct and Overlapping Debt - As of December 31, 2024
Schedule of General Obligation Revenue Bond Coverage - Last Ten Fiscal Years 105
Economic and demographic information
Demographic and Economic Statistics - Last Ten Fiscal Years 106
Principal Employers - Current Year and Nine Years Ago 107
Operating information
108
109
111
City Government Employees by Function/Program - Last Ten Fiscal Years
Operating Indicators by Function - Last Ten Fiscal Years
Capital Assets Statistics by Function - Last Ten Fiscal Years
Schedule of Cash Flows Adjusted for Additional City Funding of Fiber Optics Fund - Last Ten Fiscal Years 112
CITY OF MONTICELLO
Net Position by Component
Last Ten Fiscal Years
(accrual basis of accounting)
2015 2016 2017 2018 2019 2020 2021 2022 2023 2024
Governmental activities
Net investment in
capital assets 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$ 71,286,189$
Restricted 12,633,770 10,569,693 11,599,951 9,649,085 8,690,172 5,451,441 4,010,180 3,353,897 4,211,042 2,798,311
Unrestricted 18,144,067 20,824,170 20,899,110 23,422,548 27,133,699 32,661,667 21,443,730 22,630,226 23,795,902 22,904,847
Total governmental
net position 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$ 96,989,347$
Business-type activities
Net investment in
capital assets 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$ 36,818,066$
Unrestricted 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 33,119,324
Total business-type
net position 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$ 69,937,390$
Primary government
Net investment in
capital assets 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$ 108,104,255$
Restricted 12,633,770 10,569,693 11,599,951 9,649,085 8,690,172 5,451,441 4,010,180 3,353,897 4,211,042 2,798,311
Unrestricted 26,308,049 29,876,760 32,804,168 36,684,053 41,989,339 50,310,955 43,072,663 47,609,546 52,070,490 56,024,171
Total primary government
net position 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$ 166,926,737$
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.
$-
$50
$100
$150
2015 2016 2017 2018 2019 2020 2021 2022 2023 2024
Mi
l
l
i
o
n
s
Primary Government Net Position
Net investment in
capital assets
Restricted net
position
Unrestricted net
position
87
CITY OF MONTICELLO
Changes in Net Position
Last Ten Fiscal Years
(accrual basis of accounting)
Expenses 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024
Governmental activities
General government 1,447,725$ 1,694,111$ 1,656,666$ 1,614,613$ 1,927,752$ 2,335,614$ 2,604,600$ 2,798,491$ 2,694,603$ 2,984,967$
Public safety 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 4,185,426
Public works 5,312,612 5,480,074 5,292,743 5,548,199 5,765,576 4,777,282 4,833,405 5,556,590 5,652,111 5,172,825
Sanitation 563,477 600,300 614,328 615,586 610,944 681,948 754,132 784,052 817,199 911,886
Transit 40,000 41,250 3,191 18,333 - - - - - -
Recreation and culture 3,524,979 3,998,945 3,521,756 3,460,887 3,636,958 3,289,716 3,190,466 3,874,315 4,902,539 5,067,388
Economic development 1,547,875 756,620 488,380 1,206,067 872,984 1,914,825 - - - -
Interest and fiscal charges 735,753 565,774 514,558 617,344 752,595 756,546 660,352 480,903 448,258 402,869
Total governmental activities 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 18,725,361
Business-type activities
Water 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 1,451,015
Sewer 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 3,065,698
Stormwater - - - - - 658,771 732,851 797,995 650,470 644,602
Liquor 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 5,988,195
Fiber optics 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 2,040,533
Deputy registrar 313,968 345,492 390,658 421,662 458,695 538,625 596,933 785,822 687,325 714,541
Total business-type activities 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 13,904,584
Total primary government expenses 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$ 32,629,945$
Program Revenues
Governmental activities
Charges for services
General government 214,087$ 274,309$ 239,460$ 207,802$ 232,336$ 523,919$ 837,564$ 989,086$ 894,194$ 1,116,313$
Public safety 320,158 894,311 851,307 780,236 921,916 799,227 1,305,778 956,541 1,197,068 1,233,448
Public works 521,697 527,425 283,241 217,675 373,581 156,657 94,452 147,269 153,584 145,863
Sanitation 104,786 89,956 80,774 169,337 381,328 522,088 622,549 750,623 861,178 914,121
Recreation and culture 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 1,578,754
Economic development 14,653 301,232 13,846 2,832 14,149 10,915 10,597 14,032 8,067 7,310
Operating grants and contributions 355,041 389,005 429,697 428,443 431,004 463,335 1,539,082 1,192,748 1,640,385 856,498
Capital grants and contributions 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 2,670,075
Total governmental activities
program revenues 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 8,522,382
Business-type activities
Charges for services
Water 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 2,106,093
Sewer 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 3,162,560
Stormwater - - - - 61,757 241,873 356,458 529,146 622,664 665,526
Liquor 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 6,493,915
Fiber optics 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 2,015,650
Deputy registrar 535,931 562,891 594,777 694,263 953,855 801,502 942,674 895,494 952,036 1,166,272
Operating grants and contributions - - - - - - 95,601 297,608 474,925 -
Capital grants and contributions 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 1,601,506
Total business-type activities
program revenues 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 17,211,522
Total primary government
program revenues 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$ 25,733,904$
(continued)
88
CITY OF MONTICELLO
Changes in Net Position
Last Ten Fiscal Years (continued)
(accrual basis of accounting)
2015 2016 2017 2018 2019 2020 2021 2022 2023 2024
Net (expense)/revenue
Governmental activities (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)$ (10,202,979)$
Business-type activities 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 3,306,938
Total primary government net expense (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)$ (6,896,041)$
General Revenues and Other
Changes in Net Position
Governmental activities
Taxes
Property taxes 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$ 13,241,788$
Tax increment 727,617 668,352 648,031 638,278 679,925 707,824 - - - -
Franchise taxes 333,484 412,217 436,248 386,622 432,934 418,030 383,045 388,074 400,591 409,068
Unrestricted grants and
contributions - - - - - 886,544 - - - -
Investment earnings 278,465 375,614 379,107 364,364 969,216 666,325 (168,603) (915,858) 1,316,451 1,201,839
Other 30,473 11,180 - - - - - - - -
Gain on sale of capital assets - - 1,725 15,000 - - 271,840 - 33,950 -
Transfers 2,301,045 969,461 (550,265) 1,000,000 (2,223,245) 1,560,000 (200,000) - 3,614,311 1,100,000
Total governmental activities 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 15,952,695
Business-type activities
Franchise taxes - - - - - - 53,942 53,000 20,587 12,510
Unrestricted grants and
contributions - - - - - 151,794 - - - -
Investment earnings 108,191 128,080 151,126 162,003 482,120 332,938 (101,693) (817,755) 1,237,097 1,498,907
Miscellaneous 88,157 5,218 - 379,246 - - - - - -
Contribution of land to County (5,511,547) - - - - - - - - -
Transfer of operations - 356,900 - - - - - - - -
Transfers (2,301,045) (969,461) 550,265 (1,000,000) 2,223,245 (1,560,000) 200,000 - (3,614,311) (1,100,000)
Total business-type activities (7,616,244) (479,263) 701,391 (458,751) 2,705,365 (1,075,268) 152,249 (764,755) (2,356,627) 411,417
Total primary government 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$ 16,364,112$
Changes in Net Position
Governmental activities 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$ 5,749,716$
Business-type activities (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 3,718,355
Total primary government (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$ 9,468,071$
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 Economic Development Authority (EDA) was reclassified from a blended component unit to a discrete component unit in 2021. Prior years were not restated.
Note 3:The city created a new Stormwater enterprise fund in 2019. As part of creating the fund, all balances of the Storm Water Access capital projects fund were transferred to this fund.
89
CITY OF MONTICELLO
General Governmental Tax Revenues by Source
Last Ten Fiscal Years
(accrual basis of accounting)
Property Tax Franchise
Year Tax Increment Tax Total
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
2024 13,241,788 - 409,068 13,650,856
Change
2015-2024 52.5%-100.0%22.7%40.1%
Note 1: The Economic Development Authority (EDA) Fund was reclassified from a blended component unit to a discrete
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
$14
2015 2016 2017 2018 2019 2020 2021 2022 2023 2024
Mi
l
l
i
o
n
s
Tax Revenues by Source
Property Tax
Tax Increment
Franchise Tax
90
CITY OF MONTICELLO
Fund Balances of Governmental Funds
Last Ten Fiscal Years
(modified accrual basis of accounting)
2015 2016 2017 2018 2019 2020 2021 2022 2023 2024
General Fund
Nonspendable 113,302$ 134,245$ 110,869$ 124,650$ 135,139$ 145,603$ 142,846$ 113,530$ 122,287$ 168,889$
Restricted - - - - - - - - 639,732 -
Unassigned 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 7,955,402
Total general fund 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$ 8,124,291$
All other governmental funds
Nonspendable 4,259,743$ 3,690,330$ 23,488$ 47,614$ 72,028$ 27,600$ 29,474$ 26,450$ 30,255$ 32,543$
Restricted 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 1,803,916
Assigned 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 11,827,252
Total all other
governmental funds 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$ 13,663,711$
Note 1: The Economic Development Authority Fund was reclassified from a blended component unit to a discrete component unit in 2021. Tax increments are no longer reported in primary government. Prior years were not
restated.
91
CITY OF MONTICELLO
Changes in Fund Balances of Governmental Funds
Last Ten Fiscal Years
(modified accrual basis of accounting)
2015 2016 2017 2018 2019 2020 2021 2022 2023 2024
Revenues
Property taxes 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$ 13,233,182$
Tax increments 727,617 668,352 648,031 638,278 679,925 707,824 - - - -
Franchise taxes 333,484 412,217 436,248 386,622 432,934 418,030 383,045 388,074 400,591 409,068
Special assessments 3,318,901 984,390 946,669 700,190 712,681 633,016 1,699,141 718,773 1,185,631 1,177,064
Licenses and permits 461,049 668,602 600,933 504,464 603,925 521,369 804,889 613,014 930,901 924,801
Intergovernmental 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 1,992,951
Charges for services 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 4,436,966
Fines and forfeitures 42,474 30,656 36,702 45,350 40,054 31,852 49,566 36,808 52,413 65,940
Investment earnings 261,856 357,112 364,786 351,620 930,128 641,446 (164,300) (845,528) 1,234,053 1,137,121
Interest on loans - - - - 10,929 8,635 4,392 3,873 3,082 2,838
Other revenues 475,170 589,394 335,530 302,469 436,264 521,109 1,046,419 1,204,820 3,267,273 998,313
Total revenues 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 24,378,244
Expenditures
General government 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 2,990,174
Public safety 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 3,923,882
Public works 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 2,648,079
Sanitation 563,477 600,300 614,328 615,586 610,944 681,948 754,132 784,052 817,199 911,886
Transit 40,000 41,250 3,191 18,333 - - - - - -
Recreation and culture 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 4,202,774
Economic development 1,237,107 530,746 486,706 1,210,053 871,950 1,917,973 - - - -
Capital outlay 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 8,720,379
Debt service -
Principal 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 2,205,000
Interest and fiscal charges 570,753 529,116 470,508 522,220 634,241 756,908 697,793 498,959 446,184 402,034
Bond issuance costs 71,358 107,050 93,300 94,350 138,350 53,475 - - - -
Total expenditures 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 26,004,208
Excess of revenues
over (under) expenditures 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) (1,625,964)
Other financing sources (uses)
Long-term debt issued 2,605,000 4,900,000 5,000,000 5,000,000 8,000,000 2,155,000 - - - -
Premium (discount) on debt issued 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 4,261,817 2,192,636 1,029,628 2,082,845 5,928,040 2,760,000 6,977,964 108,801 4,750,000 1,800,000
Transfers out (2,186,930) (1,223,175) (944,335) (1,182,845) (3,321,858) (1,200,000) (8,751,621) (258,801) (750,000) (1,200,000)
Total other financing sources (uses)4,757,258 5,978,144 5,165,832 5,955,882 10,767,184 4,149,830 (1,501,817) (150,000) 4,033,950 600,000
Net change in fund balances 5,054,912$ 1,298,752$ 1,612,120$ (1,716,570)$ 5,373,853$ 489,959$ (6,228,683)$ (369,458)$ (103,552)$ (1,025,964)$
Debt service as percentage
of noncapital expenditures 35.1%38.0%30.4%20.1%26.4%24.9%39.2%18.2%16.1%15.0%
Note 1: The city redeemed the judgment portion of the 2014A bonds early in 2021.
92
CITY OF MONTICELLO
Governmental Funds Tax Revenues by Source
Last Ten Fiscal Years
(modified accrual basis of accounting)
Property Tax Franchise
Year Tax Increment Tax Total
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
2024 13,233,182 - 409,068 13,642,250
Change
2015-2024 53.2%-100.0%22.7%42.2%
Note 1: The Economic Development Authority (EDA) Fund was reclassified from a blended component unit to a discrete
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
$14
2015 2016 2017 2018 2019 2020 2021 2022 2023 2024
Mi
l
l
i
o
n
s
Tax Revenues by Source
Property Tax
Tax Increment
Franchise Tax
93
CITY OF MONTICELLO
Tax Capacity Value and Estimated Market Value of Taxable Property
Last Ten Fiscal Years
Total Net Tax
Taxable Net Capacity as a
Fiscal Residential % of Commercial % of Personal % of Ag/Misc % of Tax Capacity % of Total Direct Total Percentage of
Year Property Total Property Total Property Total Property Total Value Total Tax Rate Market Value Market Value
2015 5,861,759$ 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%
2024 14,619,722 38.4%22,987,924 60.3%234,176 0.6%264,330 0.7%38,106,152 100.0%34.547 2,727,750,300 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 as to Taxes and Taxable Property in the City of Monticello, MN
Real Property
$-
$5
$10
$15
$20
$25
$30
$35
$40
2015 2016 2017 2018 2019 2020 2021 2022 2023 2024
Mi
l
l
i
o
n
s
Total Taxable Net Tax Capacity Value
(Excludes Personal and Ag/Misc Property)
Residential
Commercial
94
CITY OF MONTICELLO
Property Tax Rates - All Direct and Overlapping Governments
Last Ten Fiscal Years
Monticello Total (1)
City Wright School Special Direct and
Year of Monticello County District #882 Districts Overlapping
2015 35.74 40.59 22.88 -99.21
2016 34.47 39.97 20.86 1.08 96.38
2017 33.17 39.60 16.24 1.02 90.03
2018 32.33 39.95 15.62 1.09 89.00
2019 34.26 44.27 19.97 1.20 99.70
2020 34.97 44.42 15.87 1.18 96.44
2021 35.66 43.72 15.39 1.18 95.95
2022 36.54 43.75 15.46 1.25 97.00
2023 34.99 37.85 12.87 1.17 86.88
2024 34.55 33.74 13.52 1.19 83.00
Note 1:
Source:Wright County
Overlapping Taxing Districts
Information reflects total tax rates levied by each entity. Tax rates are expressed in terms of “net tax capacity.” A
property’s tax capacity is determined by multiplying its taxable market value by a state determined class rate. Class
rates vary by property type and change periodically based on state legislation. Components of the direct rate are not
readily available.
0
5
10
15
20
25
30
35
40
45
50
2015 2016 2017 2018 2019 2020 2021 2022 2023 2024
Ra
t
e
%
Property Tax Rates
For the three highest taxing authorities
Wright
County
School
District
#882
City of
Monticello
95
CITY OF MONTICELLO
Property Tax Levies and Collections
Last Ten Fiscal Years
PROPERTY TAXES
Net Tax Collections in Abatements
Fiscal Levy for % of Subsequent % of and % of
Year Fiscal Year Amount Net Levy Years Amount Net Levy Adjustments Amount Net Levy
2015 8,535,565$ 8,498,745$ 99.6%24,117$ 8,522,862$ 99.9%(12,703)$ -$ 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%5,917 317 0.0%
2020 10,800,000 10,770,454 99.7%(1,503) 10,768,951 99.7%(31,049) - 0.0%
2021 11,063,700 11,053,758 99.9%9,945 11,063,703 100.0%2,007 2,004 0.0%
2022 11,353,000 11,314,942 99.7%(3,685) 11,311,257 99.6%(39,113) 2,630 0.0%
2023 12,050,000 12,025,700 99.8%65,421 12,091,121 100.3%68,604 27,483 0.2%
2024 13,074,000 12,954,393 99.1%- 12,954,393 99.1%(45,882) 73,725 0.6%
Source: Wright County
Collected within the Total Collections
Year of the Net Levy to Date Total Uncollected
96
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)712,197,300$ 14,228,188$ 1 37.3%722,993,700$ 14,453,109$ 1 54.4%
IRET Properties 44,542,400 556,780 2 1.5%
Deephaven Development LLC 33,851,900 424,070 3 1.1%
Mills Fleet Farm (Venturian Holdings)16,075,800 318,516 4 0.8%
Block 52 Holdings 18,500,000 278,820 5 0.7%
Target Corporation 12,618,200 251,614 6 0.7%10,120,400 201,658 3 0.8%
CentraCare (Monti-Big Lake Comm Hosp)12,426,300 247,776 7 0.7%7,544,100 150,882 4 0.6%
Clear Creek Land Company, LLC 12,396,100 246,422 8 0.6%
Walmart Real Estate Bus Trust 12,027,900 239,808 9 0.6%10,720,000 213,650 2 0.8%
UMC Real Estate LLC 9,280,000 184,100 10 0.5%
Home Depot USA, Inc.6,835,400 135,958 5 0.5%
Spirit Master Funding (Muller Theatres)5,511,400 109,097 6 0.4%
AX TC Retail, LP 5,154,900 101,598 7 0.4%
Ryan Companies 4,781,700 92,634 8 0.3%
RCE Property LLC 4,000,000 79,250 9 0.3%
Tapper's Holdings, LLC 3,956,800 77,636 10 0.3%
883,915,900$ 16,976,094$ 44.5%781,618,400$ 15,615,472$ 58.7%
(1) The market value and taxable net tax capacity value is for taxes levied in 2024, which are payable in 2025.
Source: Wright County Certificate as to Taxes and Taxable Property in the City of Monticello, MN and 2015 City of Monticello Annual Comprehensive Financial Report
2024 2015
97
CITY OF MONTICELLO
New Construction and Bank Deposits
Last Ten Fiscal Years
New New New New Total New
Commercial Commercial Residential Residential Residential &Percent
Year Permits Value Permits Value Commercial Total (1)Change
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%
2024 7 3,774,000 84 15,682,599 19,456,599 2,883,779 5.3%
(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
$40,000,000
2015 2016 2017 2018 2019 2020 2021 2022 2023 2024
New Residential and Commercial Construction
Residential
Commercial
98
CITY OF MONTICELLO
Water Sold by Customer Type
Last Ten Fiscal Years
(gallons)
Total
% of % of % of % of Water % of
Year Residential Total Commercial Total Industrial Total Government Total Sold Total
2015 325,188,041 68.1%76,283,322 16.0%38,897,216 8.1%37,005,919 7.8%477,374,498 100.0%
2016 329,068,876 67.7%77,795,226 16.0%42,407,860 8.7%36,647,583 7.5%485,919,545 100.0%
2017 371,596,967 67.7%93,770,712 17.1%43,220,312 7.9%40,409,649 7.4%548,997,640 100.0%
2018 352,322,681 67.3%89,911,481 17.2%43,067,083 8.2%38,128,401 7.3%523,429,646 100.0%
2019 307,411,101 64.0%93,783,767 19.5%44,120,527 9.2%35,187,913 7.3%480,503,308 100.0%
2020 392,258,038 70.1%92,058,431 16.5%39,630,515 7.1%35,351,965 6.3%559,298,949 100.0%
2021 442,964,466 71.6%97,483,202 15.8%39,768,999 6.4%38,252,736 6.2%618,469,403 100.0%
2022 409,192,333 69.5%96,391,875 16.4%45,202,637 7.7%37,749,850 6.4%588,536,695 100.0%
2023 435,136,857 69.2%106,026,233 16.9%46,522,096 7.4%40,900,149 6.5%628,585,335 100.0%
2024 367,079,894 66.1%97,349,826 17.5%52,425,604 9.4%38,102,757 6.9%554,958,081 100.0%
Source: City of Monticello utility billing department
0
100
200
300
400
500
600
700
2015 2016 2017 2018 2019 2020 2021 2022 2023 2024
Mi
l
l
i
o
n
s
Water Sold by Customer Type (gallons)
Government
Industrial
Commercial
Residential
99
CITY OF MONTICELLO
Water and Sewer Utility Rates
Last Ten Fiscal Years
2015 2016 2017 2018 2019 2020 2021 2022 2023 2024
Water Fund
Residential & Commercial
Base Rate - First 500 CF 17.85$ 18.85$ -$ -$ -$ -$ -$ -$ -$ -$
501 - 4000 per 100 CF 1.19 1.22 - - - - - - - -
4,001 - 13,369 per 100 CF 1.38 1.41 - - - - - - - -
Over 13,369 per 100 CF 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 9.37
1,001 - 6,500 per 1,000 gal - - 1.66 1.70 1.74 1.74 1.83 1.88 2.03 2.19
6,501 - 10,000 per 1,000 gal - - 1.66 1.70 1.74 1.74 1.83 1.88 2.35 2.54
10,001 - 11,500 per 1,000 gal - - 1.92 1.97 2.02 2.02 2.12 2.18 2.35 2.54
11,501 - 16,500 per 1,000 gal - - 1.92 1.97 2.02 2.02 2.12 2.18 2.58 2.79
16,501 - 33,000 per 1,000 gal - - 1.92 1.97 2.02 2.02 2.12 2.18 2.80 3.02
Over 33,000 per 1,000 gal - - 2.09 2.15 2.21 2.21 2.32 2.39 3.00 3.24
State Connection Fee - - - - - 0.81 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 9.37
1,001 - 6,500 per 1,000 gal - - 1.66 1.70 1.74 1.74 1.83 1.88 2.03 2.19
6,501 - 10,000 per 1,000 gal - - 1.66 1.70 1.74 1.74 1.83 1.88 2.35 2.54
10,001 - 11,500 per 1,000 gal - - 1.92 1.97 2.02 2.02 2.12 2.18 2.35 2.54
11,501 - 16,500 per 1,000 gal - - 1.92 1.97 2.02 2.02 2.12 2.18 2.35 2.54
16,501 - 33,000 per 1,000 gal - - 1.92 1.97 2.02 2.02 2.12 2.18 2.35 2.54
Over 33,000 per 1,000 gal - - 2.09 2.15 2.21 2.21 2.32 2.39 2.58 2.79
State Connection Fee - - - - - 0.81 0.81 0.81 0.81 0.81
Sewer Fund
Residential & Commercial
Base Rate - First 500 CF 21.69 22.69 - - - - - - - -
Over 500 per 100 CF 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 10.93
Over 1,000 per 1,000 gal - - 5.48 5.63 5.77 5.89 6.19 6.38 6.51 6.71
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.
100
CITY OF MONTICELLO
Ratios of Outstanding Debt by Type
Last Ten Fiscal Years
2015 2016 2017 2018 2019 2020 2021 2022 2023 2024
Governmental activities
General obligation bonds
Special assessment 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$ 4,560,000$
Other 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 4,365,000
Tax abatement - - 2,960,000 7,800,000 8,390,000 7,845,000 7,280,000 6,700,000 6,110,000 5,505,000
Net premium (discount)190,196 159,266 128,336 105,777 69,187 44,028 18,869 - - -
Total GO bonds 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 14,430,000
Certificates of indebtedness 325,000 265,000 200,000 135,000 70,000 - - - - -
Total governmental activities 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$ 14,430,000$
Business-type activities
General obligation
revenue bonds 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$ 910,000$
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 1,270,000
Net premium (discount)30,339 27,354 23,495 21,510 19,524 17,539 15,553 - - -
Total business-type activities 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$ 2,180,000$
Total primary government 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$ 16,610,000$
% of personal income (1)4.3%4.1%4.1%4.2%4.6%4.0%2.8%2.4%2.0%Not Available
Per capita debt (1)1,931$ 1,899$ 1,944$ 2,093$ 2,399$ 2,260$ 1,691$ 1,486$ 1,272$ 1,119$
(1) See the Schedule of Demographic and Economic Statistics.
Source: Details regarding the city’s outstanding debt can be found in the notes to basic financial statements.
101
CITY OF MONTICELLO
Ratios of Net General Obligation Bonded Debt Outstanding
Last Ten Fiscal Years
Percentage of
Less Net Estimated
General Position Actual Market
Obligation Restricted for Value of
Year Bonds (1)Debt Service Total Property (2)Per Capita (3)
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
2024 15,340,000 1,273,938 14,066,062 0.52%948
(1) Does not include revenue bonds.
(2) See the Schedule of Taxable Net Tax Capacity Value and Estimated Market Value of Taxable Property for the estimated actual market value.
(3) See the Schedule of Demographic and Economic Statistics.
Source: Details regarding the city’s outstanding debt can be found in the notes to basic financial statements.
102
CITY OF MONTICELLO
Legal Debt Margin Information
Last Ten Fiscal Years
2015 2016 2017 2018 2019 2020 2021 2022 2023 2024
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$ 81,832,509$
Total net debt
applicable to
debt limit 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 6,470,000
Legal debt margin 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$ 75,362,509$
Total net debt
applicable to
debt limit as a
percentage
of debt limit 19.3%14.5%15.2%22.5%32.5%22.5%14.1%11.2%9.1%7.9%
Market value for fiscal year 2024 (payable 2025)2,727,750,300$
Debt limit (3% of market value)81,832,509$
Debt applicable to limit
General obligation bonds 15,340,000$
Less amounts for general obligation bonds
not subject to debt limit (8,870,000)
Total net debt applicable to limit 6,470,000
Legal debt margin 75,362,509$
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
103
CITY OF MONTICELLO
Computation of Direct and Overlapping Debt
As of December 31, 2024
Estimated
Gross Percentage Amount
Bonded Debt Applicable Applicable to
Jurisdiction Outstanding to City (1)City
DIRECT DEBT:
City of Monticello 14,430,000$ 100.0%14,430,000$
OVERLAPPING DEBT:
I.S.D. 882 38,515,000 73.2%28,192,980
Wright County 119,360,000 13.3%15,874,880
Total Overlapping Debt 44,067,860
Total direct and overlapping debt 58,497,860$
(1)
Note:
Source: The Wright County auditor provided the debt outstanding and estimated applicable percentages for the school district and county.
The percentage of overlapping debt applicable is estimated using taxable assessed property values. Applicable percentages were
estimated by determining the portion of the government’s taxable assessed value that is within the City’s boundaries and dividing it by
the government’s total taxable assessed value.
Overlapping governments are those that coincide, at least in part, with the geographic boundaries of the City. This schedule estimates
the portion of the outstanding debt of those overlapping governments that is borne by the residents and businesses of the City. This
process recognizes that, when considering the government’s ability to issue and repay long-term debt, the entire debt burden borne by
the residents and businesses should be taken into account. However, this does not imply that every taxpayer is a resident and,
therefore, responsible for repaying the debt of each overlapping government.
104
CITY OF MONTICELLO
Schedule of General Obligation Revenue Bond Coverage
Last Ten Fiscal Years
Sewer Fund:
Net Revenue
Gross Operating Available for
Year 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%
2024 3,162,560 1,825,508 1,337,052 318,000 50,123 368,123 363.2%
(1) Total revenues does not include investment earnings.
(2) Total operating expenses excluding depreciation.
Source: Finance Department
Debt Service Requirements (3)
105
CITY OF MONTICELLO
Demographic and Economic Statistics
Last Ten Fiscal Years
Per
Estimated Capita
Unemployment School Personal Personal
Year Population (1)rate (2)Enrollment (3)Income (4)Income (5)
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%4,237 939,029,967 62,241
2024 14,840 2.7%4,260 Not Yet Available Not Yet Available
Notes/sources:
(1)Minnesota State Demographic Center population estimates. The 2023 estimate was determined to be high but was not adjusted.
(2)
(3)
(4)
(5)
ISD No. 882 enrollment information was obtained from the District's Financial Report for the year ended June 30, 2024.
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.
106
CITY OF MONTICELLO
Principal Employers
Current Year and Nine Years Ago
Percentage of Percentage of
Total City Total City
Employer Employees Rank Employment (1)Employees Rank Employment (1)
ISD No. 882 (Monticello)684 1 8.2%544 2 7.7%
Xcel Energy (Northern States)650 2 7.8%700 1 9.9%
CentraCare Medical Center (New River)577 3 6.9%500 3 7.1%
Cargill Kitchen Solutions (Sunny Fresh)425 4 5.1%450 4 6.4%
Target 307 5 3.7%
Wal-Mart Supercenter 225 6 2.7%325 5 4.6%
Ultra Machine Corporation 215 7 2.6%173 7 2.4%
City of Monticello 176 8 2.1%150 9 2.1%
Home Depot 157 9 1.9%160 8 2.3%
WSI Industries, Inc.120 10 1.4%100 10 1.4%
Cub Foods 180 6 2.5%
2,852 40.4%3,282 46.5%
Source: City of Monticello Employment Survey and 2015 City of Monticello ACFR.
2024 2015
(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.
107
CITY OF MONTICELLO
City Government Employees by Function/Program
Last Ten Fiscal Years
2015 2016 2017 2018 2019 2020 2021 2022 2023 2024
Employees by function
General Fund
General government 12.50 13.50 11.50 11.50 11.50 11.75 9.50 10.70 11.15 10.50
Public safety
Building 4.00 4.00 4.00 3.00 3.00 3.00 3.00 4.20 5.20 5.20
Fire 3.80 3.80 3.80 3.80 3.80 3.80 4.80 4.90 3.90 3.95
Public works
Engineering 1.00 1.00 1.00 2.00 2.00 2.00 3.25 2.65 2.65 1.55
Maintenance(1)18.50 18.50 10.50 9.50 9.60 8.80 7.80 8.00 8.40 8.95
Recreation and culture
Parks (1)5.00 5.00 13.00 10.00 8.90 9.90 9.60 10.30 10.10 10.45
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 6.00 6.00 6.00 6.00
Community center - PT(2)36.50 36.50 38.10 37.30 35.00 14.70 7.40 12.05 14.75 16.25
Enterprise Funds
Utilities 5.00 5.00 6.00 6.00 6.50 6.50 8.65 8.75 8.90 7.35
Stormwater - - - - - - - - - 1.55
Deputy registrar 5.00 5.00 7.50 7.00 7.60 6.80 7.50 8.35 7.55 7.12
Liquor store 11.50 11.50 12.40 13.10 14.20 11.90 10.20 10.95 11.65 10.49
FiberNet (3)8.50 - - - - - - - - -
Internal Services Funds
Facilities maintenance - - - - - - 0.50 1.10 1.10 1.10
Information technology - - - - - - 0.40 1.00 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 1.60
Total 119.80 113.30 117.30 112.70 111.60 88.85 80.80 91.45 94.95 94.06
Employees by fund type
General Fund 45.80 46.80 44.80 40.80 39.80 40.25 38.95 41.75 42.40 41.60
Special Revenue Funds 44.00 44.00 45.60 44.80 42.50 22.20 13.40 18.05 20.75 22.25
Enterprise Funds 30.00 21.50 25.90 26.10 28.30 25.20 27.25 30.15 30.20 28.61
Discrete Component Unit Fund - 1.00 1.00 1.00 1.00 1.20 1.20 1.50 1.60 1.60
119.80 113.30 117.30 112.70 111.60 88.85 80.80 91.45 94.95 94.06
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
108
CITY OF MONTICELLO
Operating Indicators by Function
Last Ten Fiscal Years
2015 2016 2017 2018 2019 2020 2021 2022 2023 2024
Function
Fire
Calls for service 262 270 312 269 294 272 373 384 389 395
Public works
Salt (tons)534 525 461 585 752 730 700 600 620 277
Sand (tons)285 300 397 329 432 400 - 24 29 35
Crack sealant (pounds)29,580 49,039 46,721 46,868 47,176 44,456 18,276 - - -
Asphalt repairs (tons of asphalt)293 220 167 164 492 443 527 664 1,053 699
Recreation and culture
Shade trees planted 257 280 320 305 314 220 300 75 75 150
Diseased trees removed 208 60 40 12 15 6 25 15 20 60
Trails maintained (miles)18 20 40 40 41 41 42 43 43 47
Community center users (visits)199,228 197,523 188,124 183,523 183,521 71,632 94,448 117,942 N/A 228,000
Program sales 213,924$ 193,628$ 162,461$ 183,194$ 112,506$ 17,930$ 44,837$ 62,486$ 50,276$ 61,504$
Rental revenue 154,938$ 168,353$ 190,343$ 199,200$ 197,351$ 73,096$ 136,722$ 183,114$ 187,166$ 219,607$
Library
Items checked out 195,235 190,433 182,986 182,691 171,460 112,334 143,223 138,428 134,747 123,337
Programs offered 167 212 290 287 243 102 104 133 134 122
Program participants 3,919 4,306 5,336 5,059 4,788 4,810 1,772 3,317 2,801 1,734
Economic development
Permits issued 768 802 911 856 837 957 1,008 909 1,122 2,275
Permit valuation 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$ 32,680,906$
New residential dwellings 44 61 64 58 56 68 95 35 46 84
Water
Meters read 16,520 16,800 51,240 52,092 52,752 53,496 54,564 56,402 55,924 57,940
Meters/remotes replaced 694 991 734 606 426 54 58 75 83 59
Water valves maintained 436 400 400 401 447 120 533 479 475 173
Hydrants maintained 430 250 177 172 428 153 216 225 468 154
Residential water gallons used 325,188,041 329,068,876 371,596,967 352,322,681 307,411,101 392,258,038 442,964,466 409,192,333 435,136,857 367,079,894
Avg. daily consumption (MG)1.308 1.419 1.580 1.540 1.401 1.650 1.846 1.717 1.784 1.592
Max. daily gallons pumped (MG)3.203 3.450 4.168 3.400 3.064 4.295 4.648 4.179 4.133 3.390
Sewer
Sewer flow (MG)417 432 445 434 473 446 482 425 433 459
Thickened sludge (wet tons)1,549 1,449 1,578 2,115 2,145 2,072 2,207 2,231 2,132 2,308
Thickened sludge (dry tons)236 216 229 333 336 314 336 317 303 328
Dry tons as % of wet tons 15.24%14.91%14.51%15.74%15.66%15.15%15.22%14.21%14.21%14.21%
Fiscal Year
109
CITY OF MONTICELLO
Operating Indicators by Function
Last Ten Fiscal Years (continued)
2015 2016 2017 2018 2019 2020 2021 2022 2023 2024
Fiber optics
Customers 1,574 1,630 1,671 1,639 1,701 1,851 1,842 1,786 1,723 1,718
Service subscriptions 2,656 2,589 2,528 2,388 2,381 2,439 2,394 2,283 2,182 2,144
TV customers 714 641 543 458 395 323 289 256 233 218
Phone customers 518 461 431 386 362 315 297 275 248 229
Internet customers 1,424 1,487 1,554 1,544 1,624 1,801 1,808 1,752 1,701 1,697
Liquor store
Transactions 237,535 235,901 248,356 261,071 267,276 260,957 250,962 249,604 240,982 221,133
Average liquor sale transaction 22.42$ 22.39$ 22.42$ 22.56$ 23.07$ 27.48$ 27.32$ 27.72$ 28.13$ 28.22$
Beer sales 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$ 3,306,855$
Liquor sales 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$ 2,156,981$
Wine sales 927,732$ 889,082$ 894,151$ 904,385$ 894,005$ 982,113$ 915,444$ 882,772$ 855,693$ 775,979$
Other sales 166,654$ 171,420$ 192,615$ 201,482$ 212,052$ 232,452$ 249,112$ 253,581$ 273,155$ 241,792$
Gross profit margin % - beer 25.6%21.1%23.2%21.4%22.5%21.2%23.8%24.5%23.4%22.7%
Gross profit margin % - liquor 29.8%29.0%26.6%29.0%30.1%30.7%28.9%30.9%30.6%29.8%
Gross profit margin % - wine 31.5%32.5%34.4%32.5%31.8%33.4%29.6%27.0%31.1%32.1%
Annual sales increase 6.3%-0.7%5.6%5.7%4.7%16.1%-4.0%0.9%-1.7%-8.1%
Deputy registrar (DMV)
Motor vehicle transactions 64,927 67,508 70,605 110,574 129,825 115,466 88,875 77,515 77,870 79,759
DNR transactions 5,914 6,318 5,873 7,009 8,148 8,424 8,759 9,984 8,950 8,058
Game/fish transactions 387 600 647 549 709 311 265 245 264 209
Drivers licenses transactions 1,294 1,465 1,390 1,411 1,283 2,927 3,885 3,334 3,326 4,024
Total transactions 72,522 75,891 78,515 119,543 139,965 127,128 101,784 91,078 90,410 92,050
Dealerships serviced 19 21 27 28 30 32 32 43 74 73
Net revenue per transaction 3.02$ 3.05$ 2.66$ 2.21$ 3.48$ 2.15$ 1.16$ 1.30$ 5.14$ 5.05$
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
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CITY OF MONTICELLO
Capital Assets Statistics by Function
Last Ten Fiscal Years
2015 2016 2017 2018 2019 2020 2021 2022 2023 2024
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 69.0 70.0 70.0 70.0 70.0 81.0 81.0 81.0
Recreation and culture
Parks acreage maintained 180 185 320 320 360 360 365 365 365 365
Parks 30 30 30 30 30 30 30 30 30 30
Park buildings 15 15 15 18 18 18 19 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
111
CITY OF MONTICELLO
Schedule of Cash Flows Adjusted for Additional City Funding of Fiber Optics Fund
Last Ten Fiscal Years
2015 2016 2017 2018 2019 2020 2021 2022 2023 2024
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$ 2,051,764$
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) (1,676,386)
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) (430)
Net cash used by operating activities (188,943) (394,496) (87,023) (198,884) 323,188 269,251 109,946 476,561 722,900 374,948
Cash flows from noncapital financing activities
Transfers from other funds 450,000 350,000 180,000 130,000 - - - - - -
Franchise fees - - - - - - - 53,000 20,587 12,510
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 12,510
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) (146,934)
Net cash provided (used) by capital and related
financing activities 29,850 - - - - (171,210) (92,701) (199,209) (198,713) (146,934)
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 92,094
Net increase (decrease) in cash and cash equivalents 299,162 (38,713) 97,467 (65,668) 339,447 194,105 12,749 293,352 615,391 332,618
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 increase (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$ 332,618$
$(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 2024
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 increase (decrease) in cash and cash
equivalents
112
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