2006 AuditCITY OF MONTICELLO, MINNESOTA
FINANCIAL STATEMENTS AND SUPPLEMENTARY INFORMATION
YEAR ENDED DECEMBER 31, 2006
CITY OF MONTICELLO, MINNESOTA
TABLE OF CONTENTS
YEAR ENDED DECEMBER 31, 2406
INTRODUCTORY SECTION
OFFICIAL DIRECTORY 1
FINANCIAL SECTION
INDEPENDENT AUDITORS' REPORT 2
REQUIRED SUPPLEMENTARY INFORMATION
MANAGEMENT'S DISCUSSION AND ANALYSIS 4
BASIC FINANCIAL STATEMENTS
GOVERNMENT-WIDE FINANCIAL STATEMENTS
STATEMENT OF NET ASSETS 13
STATEMENT OF ACTIVITIES 14
FUND FINANCIAL STATEMENTS
BALANCE SHEET --GOVERNMENTAL FUNDS 15
RECONCILATION OF THE GOVERNMENTAL FUNDS BALANCE SHEET TO THE
GOVERNMENT-WIDE STATEMENT OF NET ASSETS -GOVERNMENTAL
ACTIVITIES
17
STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND
BALANCES -GOVERNMENTAL FUNDS 18
RECONCILIATION OF STATEMENT OF REVENUES, EXPENDITURES AND
CHANGES iN FUND BALANCES OF THE GOVERNMANTAL FUNDS TO THE
GOVERNMENT-WfDE STATEMENT OF ACTIVITIES -GOVERNMENTAL
ACTIVITIES 20
STATEMENT OF NET ASSETS -PROPRIETARY FUNDS 21
STATEMENT OF REVENUES, EXPENSES AND CHANGES IN NET ASSETS -
PROPRIETARY FUNDS 23
STATEMENT OF CASH FLOWS -PROPRIETARY FUNDS 25
NOTES TO FINANCIAL STATEMENTS 27
REQUIRED SUPPLEMENTARY INFORMATION OTHER THAN MD&A
BUDGETARY COMPARISON SCHEDULE -GENERAL FUND 5d
BUDGETARY COMPARISON SCHEDULE -COMMUNITY CENTER FUND 55
BUDGETARY COMPARISON SCHEDULE -CAPITAL OUTLAY REVOLVING FUND 56
BUDGETARY COMPARISON SCHEDULE -SANITARY SEWER ACCESS FUND 57
NOTES TO THE REQUIRED SUPPLEMENTARY INFORMATION 58
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CITY OF MONTICELLO, MINNESOTA
TABLE OF CONTENTS (CONTINUED)
YEAR ENDED DECEMBER 31, 2006
FINANCIAL SECTION (CONTINUED)
COMBINING FINANCIAL STATEMENTS
COMBINING BALANCE SHEET - NONMAJOR GOVERNMENTAL FUNDS
COMBINING STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN
FUND BALANCES - NONMAJOR GOVERNMENTAL FUNDS
STATISTICAL SECTION (UNAUDITED}
BOND INDEBTEDNESS -GENERAL OBLIGATION BONDS
BOND INDEBTEDNESS -GENERAL OBLIGATION SPECIAL ASSESSMENT BONDS
BOND INDEBTEDNESS -GENERAL OBLIGATION TAX INCREMENT BONDS
BOND INDEBTEDNESS -GENERAL OBLIGATION NOTE -PROJECT 93-14
WASTEWATER TREATMENT
BOND INDEBTEDNESS -PUBLIC PROJECT REVENUE BONDS
BOND INDEBTEDNESS -CONTRACT FOR DEED
BOND INDEBTEDNESS -TAX LEVIES TO RETIRE BONDED INDEBTEDNESS
OTHER REPORT SECTION
REPORT ON MINNESOTA LEGAL COMPLIANCE
59
63
67
68
70
71
72
73
74
76
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INTRODUCTORY SECTION
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CITY OF MONTICELLO, MINNESOTA
OFFICIAL DIRECTORY
DECEMBER 31, 2006
Elected Officials Name Term Expires
Mayor Clint Herbst December 31, 2006
Council Member Wayne Mayer December 31, 2008
Council Member Glen Posusta December 31, 2006
Council Member Tom Perrault December 31, 2008
Council Member Brian Stumpf December 31, 2006
Appointed Officials
Administrator Jeff O'Neili
Director of Finance and
Administrative Services Rick Wolfsteller
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FINANCIAL SECTION
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Lars~nAlleri
....1'
CPAs, Consultants & Advisors
www.larsonallen.com
INDEPENDENT AUDITORS' REPORT
Honorable Mayor and City Council
City of Monticello, Minnesota
We have audited the accompanying financial statements of the governmental activities, the business-
type activities, each major fund, and the aggregate remaining fund information of the
City of Monticello, Minnesota as of and for the year ended December 31, 2006, which collectively
comprise the City's basic fiinancial statements as listed in the table of contents. These financial
statements are the responsibility of the City of Monticello's management. Our responsibility 'ss to
express opinions on these financial statements based on our audit. The prior year summarized
comparative information has been derived from the City's 2005 financial statements and, in our report
dated May 31, 2006, we expressed unqualifed opinions on the respective financial statements of the
governmental activities, the business-type activities, each major fund, and the aggregate remaining
fund information.
We conducted our audit in accordance with auditing standards generally accepted in the United States
of America. Those standards require that we plan and perform the audit to obtain reasonable
assurance about whether the financial statements are free of material misstatement. An audit includes
examining, on a test basis, evidence supporting the amounts and disclosures in the financial
statements. An audit also includes assessing the accounting principles used and signifiicant estimates
made by management, as well as evaluating the overall financial statement presentation. We believe
that our audit provides a reasonable basis for our opinions.
In our opinion, the financial statements referred to above present fairly, in all material respects, the
respective financial position of the governmental activities, the business-type activities, each major
fund and the aggregate remaining fund information of the City of Monticello as of December 31, 2006,
and the respective changes in financial position and where applicable cash flows, thereof for the year
then ended in conformity with accounting principles generally accepted in the United States of America.
The management's discussion and analysis and budgetary comparison schedules, as listed in the table
of contents, are not a requried part of the basic financial statements, but are supplementary
information required by accounting principles generally accepted in the United States of America. We
have applied certain limited procedures, which consisted principally of inquiries of management
regarding the methods of measurement and presentation of the required supplementary information.
However, we did not audit the information and express no opinion on it.
~I ~ - r LarsonAlleu LI,1' is a member of Nrxia lnternuioir 12) worldwide nerwor]< of independent accoun[ing and consulriny (inns.
IN1'GRNA"f10NAL.
Honorable Mayor and City Council
City of Monticello, Minnesota
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Our audit was conducted for the purpose of forming opinions on the financial statements that
collectively comprise the City of Monticello's basic financial statements. The combining nonmajor fund
financial statements and statistical section are presented for purposes of additional analysis and are
not a required part of the basic financial statements. The combining nonmajor fund financial
statements have been subjected to the auditing procedures applied in the audit of the basic financial
statements and, in our opinion, are fairly stated in all material respects in relation to the basic financial
statements taken as a whole. The statistical section has not been subjected to the auditing procedures
applied in the audit of the basic financial statements and, accordingly, we express no opinion on it.
~~~ ~~ ~~~
LarsortAllen LLP
St. Cloud, Minnesota
May 9, 2007
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REQUIRED SUPPLEMENTARY lNF4RMATlON
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CITY OF MONTICELLO, MINNESOTA
MANAGEMENT'S DISCUSSION AND ANALYSIS
YEAR ENDED DECEMBER 31, 2006
This section of the Annual Financial Report of the City of Monticello (the City) is intended to present a
discussion and analysis of the City's financial performance during the fiscal year ended December 31,
2006. This analysis focuses on current year activities and should be read in conjunction with the City's
basic financial statements following this section.
Financial Hi hlights
• Assets of the City exceeded liabilities by $105.1 million. Of this amount, $62.4 million may be
used to meet the government's ongoing obligations to citizens and creditors in accordance wi#h
the City's fund designations and fiscal policies.
• For the current fiscal year, total governmental fund expenditures and other financing uses
exceeded revenues including other financing sources, for the year by $11.1 million.
• The City's governmental funds reported combined ending fund balances of $36.5 million. Of
this total amount, approximately 49.5% is available for spending at the City's discretion.
• At the end of the current fiscal year, unreserved fund balance for the general fund was $5.0
million, or 77% of the total general fund expenditures of $6.5 million.
Report Layout
In addition to the Management's Discussion and Analysis {MD&A), the report consists of
government-wide statements, fund financial statements, notes to the financial statements,
combining schedules of nonmajor funds and statistical information. The first several statements
are highly condensed and present agovernment-wide view of the City's finances. Within this
summary, al! City operations are categorized and reported as either governmental or business-type
activities. Governmental activities include basis services such as police, fire, building inspection,
public works, parks and recreation, library, community development and general government
administration. The business-type activities include water, sewer, liquor and cemetery activities.
These government-wide statements are designed to be more corporate-like in that all activities are
consolidated into a total for the City.
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CITY OF MONTICELLO, MINNESOTA
MANAGEMENT'S DISCUSSION AND ANALYSIS
YEAR ENDED DECEMBER 31, 200fi
Statement of Net Assets and Statement of Activities
The Statement of Net Assets (page 13) focuses on resources available for future operations. In
basic terms, this statement presents a snapshot view of the assets the community owns, the
liabilities it owes and the net difference. The net difference is further separated into amounts
restricted for specific purposes and identifies unrestricted amounts.
The Statement of Activities (page 14) focuses on grass and net cost of City programs and the
extent to which such programs rely upon general tax and other revenues to support them. The
statement summarizes and simplifies the users analysis #o determine the extent to which programs
are self-supporting andlor subsidized by general revenues.
These two statements report the City's net assets and the changes in them. Qver time, increases
or decreases in the City's net assets are one indicator of whether the City's financial health is
improving or deteriorating. You will need to consider other non-financial factors, however, to
assess the overall health of the City of Monticello.
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Fund Financial Statements
Fund Financial Statements (pages 15 to 26) focus separately on major governmental funds and
proprietary funds. Governmental funds statements allow the more traditional presentation of
financia! statements. Most of the City of Monticello's basic services are reported in governmental
funds. Governmental funds focus on how money flows into and out of these funds and the
balances left at year end that are available for spending. The governmental fund statements
provide a detailed short term view of the City's general government operations and the basic
services it provides.
Statements for the City's proprietary funds follow the governmental funds and include net assets,
revenue, expenses and changes in net assets, and cash flow.
Notes #o the Financial Statements
The Notes to the Financial Statements {pages 27 #0 49} provide additional disclosures required by
governmental accounting standards and provide information to assist the reader in understanding
the City's financial condition.
Other Enformation
Readers desiring additional information on nonmajor funds can find it in the combining statements
of nonmajor funds section of this report. Completing the financial section of the report are
schedules on capital assets and other financial schedules.
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CITY OF MONTICELLO, MINNESOTA
MANAGEMENT'S DISCUSSION AND ANALYSIS
YEAR ENDED DECEMBER 31, 2Q06
Statemen# of Net Assets
A condensed version of the Statement of Net Assets at December 31, 2006 follows:
Governmental Activities
2006 2005
Current and Other Assets ~ $ 59,789,175 $ 60,238,192
Capital and Noncurrent Assets 61,480,506 52,529,709
Total Assets 121,269,681 112,767,901
Current Liabilities 8,861,064 7,769,647
Long-Term Liabilities 48,449,246 52,852,172
Total Liabilities 57,310,310 60,621,819
Net Assets
Invested in Capital Assets
Net of Refa#ed Debt 7,009,622 7,009,622
Unrestricted 56,949,749 45,136,460
Total Net Assets $ 63,959,371 $ 52,146,082
Business-Ty pe Activities
200fi 2005
Current and Other Assets $ 6,041,817 $ 5,019,709
Capital and Noncurrent Assets 35,749,380 35,077,391
Total Assets 41,791,197 40,097,100
Current Liabilities 603,950 279,218
Net Assets
Invested in Capital Assets
Net of Related Debt 35,749,380 35,077,391
Unrestricted 5,437,867 4,740,491
Total Net Assets $ 41,187,247 $ 39,817,882
Total
2006 2005
Current and Other Assets $ 65,830,992 $ 65,257,901
Capital and Noncurrent Assets 97,229,886 87,607,100
Total Assets 163,060,878 152,865,001
Current Liabilities 9,465,014 8,048,865
Long-Term Liabilities 48,449,246 52,852,172
Total Liabilities 57,914,260 60,901,037
Net Assets
Invested in Capital Assets
Net of Related Debt 42,759,002 42,087,013
Unrestricted 62,387,616 49,876,951
Total Net Assets $105,146,618 $ 91,963,964
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CITY OF MONTICELLO, MINNESOTA
MANAGEMENT'S DISCUSSION AND ANALYSIS
YEAR ENDED DECEMBER 31, 2006
Governmental Activities
The net assets of the City's governmental activities increased from the previous year due to
significant infrastructure improvements and addi#ions. A significant portion of the increase was
related to the I-94 Interchange project. Continuation of the City's Reconstruction Program, now in
its fourth phase, also added to the upgraded infrastructure. Additional improvements to the city's
infrastructure included re-alignment of Otter Creek Road, Extension of School Blvd. West, and
Extension of Chelsea Road West.
Business-Type Activities
The net assets of our business-type activities also increased during 2006. The utility funds
continue to invest in capital assets to accommodate the growth of the City in various new
subdivisions and also to maintain an aging infrastructure system. Some of the most significant
improvements made this year include infrastructure replacements in conjunction with the Core
Street Phase IV Project, various new utility constructions in new development areas, an
Interstate 94 sewer line crossing, and a one million gallon water tower project.
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Revenues
Program Revenues
Charges for Services
Operating Grants and Contributions
Capital Grants and Contributions
General Revenues
Property Taxes
Unrestricted State Aid
Investment Earnings
Other
Total Revenues
Business-Tugs Activities (Continued)
A condensed version of the Statement of Activities is as foiiows:
Expenses
General Government
Public Sa#ety
Highways and Streets
Sanitation
Culture and Recreation
Economic Development
Debt Service
Liquor
Cemetery
water
Sewer
Total Expenses
Changes in tJet Assets Before
Special Items and Transfers
Transfers
CITY OF MONTICELLO, MINNESOTA
MANAGEMENT'S DISCUSSION AND ANALYSIS
YEAR ENDED DECEMBER 31, 2006
Governmental Activities Business-Type Activities Total
2006 2005 2006 2005 2006 2005
4,455,657 $ 5,425,225
281,531 381,420
12,#53,185 2,135,687
$ 5,433,855 $ 5,244,748
2,188,675 4,310,691
$ 9,889,512 $ 10,669,973
281,531 381,420
14,341,860 6,446,378
7,253,560 7,476,106 - - 7,253,560 7,476,106
130,000 200,000 - - 130,000 200,000
2,093,877 985,497 334,623 89,987 2,428,500 1,075,484
4,619,629 2,799,703 27,100 (25,576) 4,646,729 2,774,127
30,987,439 19,403,638 7,984,253 9,619,850 38,971,692 29,023,488
3,639,497 1,907,352 - - 3,639,497 1,907,352
2,856,573 1,551,098 - - 2,856,573 1,551,098
5,318,865 5,990,719 - - 5,318,865 5,990,719
474,045 492,446 - - 474,045 492,446
2,694,970 2,210,729 - - 2,694,970 2,210,729
2,081,331 fi57,258 - - 2,061,331 657,258
2,378,871 1,733,933 - - 2,378,871 1,733,933
- - 3,265,082 3,172,741 3,285,082 3,172,741
- - 71,044 33,717 71,044 33,717
- - 913,638 939,449 913,838 939,449
- - 2,095,124 2,017,993 2,095,124 2,017,993
19,424,152 14,543,535 6,364,888 6,163,900 25,789,040 20,707,435
11,563,287 4,860,103 1,619,365 3,455,950 13,162,652 8,316,053
25o,oao 250,000 X250,000) f2so,ooo) - -
Change in Net Assets 11,813,287 5,110,103 1,369,365 3,205,950 13,182,652 8,316,053
Net Assets -Beginning of Year 52,146,484 47,035,981 39,817,882 36,611,932 91,963,966 83,647,913
Net Assets -End of Year $ 63,959,371 $ 52,146,084 $ 41,187,247 $ 39,817,882 $ 105,146,618 $ 91,963,966
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CITY OF MONTICELLO, MINNESOTA
MANAGEMENT'S DISCUSSION AND ANALYSIS
YEAR ENDED DECEMBER 31, 2006
Governmental Activities
Figure A-3 Sources of City's Revenues for Fiscal 2006
^ Other D Charges for
Investment 15% Services
Earnings 14% ^ Operating
7% Grants and
Contributions
^ Unrestricted `n:d~~~='~rµ~ e~~~'.`, 1
S#ate Aid ---
0
D Capital Grants
D Property _ and
Taxes Contributions
23% 40%
Revenues for the City's Governmental Activities increased by $11.6 million, or 59.7°~. The major
components of this increase are explained as follows:
• The City's property tax revenues decreased $225,000 as a result of a lower tax levy.
• Capital Grants and Contributions increased by $10 million or 469%. This increase was due to
recognizing Special Assessment revenues of $8 million and the recognizing of a $2 million
receivable from Wright County far the I-94 Interchange Project.
• Charges for services decreased by $970,000 or 17.8%. This decrease was primarily due to a
reduction in Sanitary Sewer Access Fees collected of $784,000, a reduction in Storm Sewer
Access Fees of $508,000, and a reduction in Water Access Fees of $221,000 due to a
decrease in new developments.
• Increases in Community Center Membership Fees of $131,000 and inspection fees increase of
$106,000 make up the major portions of the changes.
• Investment earnings increased by $1.1 million, primarily due to recognizing market value
adjustment at December 31, 2006.
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CITY OF MONTICELLO, MINNESOTA
MANAGEMENT'S DISCUSSION AND ANALYSIS
YEAR ENDED DECEMBER 31, 2006
Governmental Activities (Continue
Special assessment revenue for the City decreased $1.3 million, or 40%, over the previous year
because of fewer projects being constructed in new developments that would have had sewer,
water, or storm sewer trunk charges assessed. License and permit fees were also down by
$200,000, or 20%.
Inter-government revenue increased by $563,000 as the result of State Aid received for highway
projects.
Expenses -The City expenses for governmental activities increased by $4.9 million or 33%. The
increase is primarily due to increased maintenance projects for highways and streets. In regards to
debt service paymen#s, debt expenditures were $644,000 more than the previous year.
Business-Type Activities
The City's business-type operating revenues increased by over $189,000, or 36%, primarily due to
increased sales from the liquor store operation of $79,000 and additional revenue from sewer and
water charges of $i 14,000.
Contribution of Capital Assets decreased by $2.1 million due to a decrease in sewer and water
utilities construction.
Business-type expenses increased from previous year by approximately $165,000 due to increased
costs of merchandise at the liquor store of $117,000, $59,000 in other liquor expenses increases,
$78,000 additional sewer operating costs, and $38,000 in increased cemetery costs.
Financial Analysis of the City's Funds
The General Fund -The change in the City's general fund balance was $295,656 fior 2006.
Community Center Fund -The increase in the Community Center Fund balance was the result of
additional revenue generated through membership fee increases.
Sanitary Sewer Access Fund -The Sanitary Sewer Access Fund decreased by $1.6 million due to
previous bond proceeds revenue being used for various construction projects.
Capital Project Funds -The fund resources decreased in the current year primarily from previous
proceeds from the sale of bonds being used for completion of various public improvement projects.
Housing and Redevelopment Authority -This is a new major fund in 200G. Expenditures increased
by $1.4 million as the result of a increase in HRA Land Held for Resale and improvements to the
land before being sold.
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CITY OF MONTICELLO, MINNESOTA
MANAGEMENT'S DISCUSSION AND ANALYSIS
YEAR ENDED DECEMBER 31, 200fi
Genera! Budaetary Highiights
The City of Monticello Council did not make any revisions to the City's original budget document
during 2006.
In total, the general fund revenues were approximately $267,000 less than budgeted due to lower
tax collections than levied, resulting in a budget variance of $192,000, and a decrease in Licenses
and Permits of $60,000.
Expenditures within the general fund were less than budgeted by approximately $402,000, resulting
in an excess of revenue aver expenditures of $134,000.
Capital Assets
At December 31, 2006, the City of Monticello had $97.2 million invested in capital assets including
fire and public works equipment, park and recreation facilities, buildings, roads, sewer, water, and
storm sewer utilities.
The City of Monticello's fiscal 2007 capital budget calls for another $10.5 million in capital projects
and equipment expenditures, with $8.2 million of this amount tentatively scheduled for Waste
Wafter Treatment Plant improvements.
Governmental Business-Type
Activities Activities Total
2006 2005 2006 2005 2006 2005
Land $ 6,363,420 $ 6,084,918 $ 1,209,580 $ 1,209,580 $ 7,573,000 $ 7,294,488
Construction in progress 20,523,835 12,513,141 5,845,433 4,507,456 26,369,268 17,020,597
Infrastructure 35,043,517 33,513,517 28,510,509 27,736,251 63,554,026 61,249,768
Buildings 13,018,486 13,018,486 5,156,471 5,156,471 18,174,957 18,174,957
Improvements
other than buildings 4,015,218 3,044,913 17,828,867 17,791,202 21,844,085 20,836,115
Machinery, Equipment,
and Vehicles 3,139,200 3,080,142 1,313,180 1,259,049 4,452,380 4,339,191
Less: Accumulated
Depreciation (20,623,170) (18,725,408) (24,114,660) (22,582,618) (44,737,830} (41,308,026)
Total $ 61,480,506 $ 52,529,709 $ 35,749,380 $ 35,077,391 $ 97,229,886 $ 87,&07,100
Additional information on the City's capital assets can be found in the notes to the financial
statements.
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CITY OF MONTICELLO, MINNESOTA
MANAGEMENT'S DISCUSSION AND ANALYSIS
YEAR ENDED DECEMBER 31, 2U06
Long-Term Debt
At year-end, the City of Monticello had $50.9 million in bonds and notes outstanding compared to
$54.3 million in 2005. Payments of $3.4 million make up the changes from the prior year.
GOVERNMENTAL ACTIVITIES
General Obligation Bonds
General Obligation Tax Increment Bonds
Special Assessment Bonds
WWTP Note
Public Project Revenue
Contract For Deed
Total
2006 2005
$ 2,210,000 $ 2,420,000
810,000 970,000
30,255,000. 31,065,000
10,188, 973 10, 835 , 699
6,650,000 6,910,000
764,293 2,085,222
$ 50,878,266 $ 54,285,921
Economic Factors and Next Years Bud et
The City of Monticello considered many factors when setting the #iscal year 2007 budget, rates and
fees that will be charged for business-type activities. With the City Council's decision to reduce the
previous year's tax levy by $250,000, new revenue sources were enacted. An electric Utility
Franchise Fee of 3% was es#ablished that is expected to generate $280,000. Sewer and water
user fees were increased by 15% to be used to fund operational costs for their departments that
were previously covered by the General Fund. Finally, Reserve Funds of $295,000 from the
General Fund and $457,000 from Enterprise Funds were included to balance the budget. The
City's property tax levy for 2007 wil! amount to $fi.5 million, $250,000 less than 2006.
Financial Contact
The City's financial statements are designed to provide our citizens, customers, and creditors with
a general overview of the City of Monticello's finances and to show the City's accountability #or the
money it receives. If you have questions about this report or need additional financial information,
contact the City of Monticello Finance Department at 505 Walnut Street, Suite 1, Monticello, MN
55362.
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BASIC FINANCIAL STATEMENTS
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GOVERNMENT-WIDE FINANCIAL STATEMENTS
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CITY OF MONT[CELLO, MINNESOTA
STATEMENT OF NET ASSETS
DECEMBER 31, 2006
(WITH COMPARATIVE AMOUNTS AS OF DECEMBER 31, 2005)
Tofals
Governmental Business-Type
ASSETS Activities Activities 2006 2005
CURRENT ASSETS
Cash and Investments $ 31,569,318 $ 4,901,337 $ 36,470,655 $ 49,724,417
Accounts Receivable 374,624 536,801 911,425 772,298
Due from Other Governments 2,018,563 - 2,018,563 -
Loans Receivable 1,512,228 - 1,512,228 1,634,579
Land Held for Resale 7,525,180 - 7,525,180 4,277,948
Prepaid Items 110,157 21,705 131,862 83,748
Deferred Bond Issuance Cost 170,328 - 170,328 192,598
inventory - 58#,974 581,974 568,107
Speciat Assessments Receivable 16,508,777 - 16,508,777 8,004,206
Capital Assets Not Being Depreciated
Land 6,363,420 1,209,580 7,573,000 7,294,498
Construction in Progress 20,523,835 5,845,433 26,369,268 17,020,597
Capital Assets Being Depreciated (Net)
Buildings 10,162,201 2,976,117 13,138,318 13,636,144
Office Equipment and Furniture 157,885 48,066 205,951 216,300
Vehicles 596,326 23,939 620,265 648,418
Machinery and Shop Equipment 392,326 127,275 519,601 G26,799
Improvements Other than Building 2,088,335 8,387,732 10,476,067 9,998,976
In#rastructure 21,196,178 17,131,238 38,327,416 38,165,368
Total Assets 121,269,681 41,791,197 163,060,878 152,865,001
LIABILITIES
CURRENT LIABILITIES
Accounts Payable 857,809 387,643 1,245,452 775,764
due to Other Governments 244,479 52,197 296,676 75,053
Other Accrued Liabilities 69,607 123,050 192,657 236,190
Contracts Payable 1,114,671 - 1,114,671 1,261,089
Accrued Interest Payable 907,705 - 907,705 901,768
Deferred Revenue - 40,531 40,531 17,170
Escrow Deposits 2,278,411 529 2,278,940 2,387,091
Contract for Deed -Due Within One year 100,000 - 100,000 100,000
General Obligation Bonds Payable -Due Within One Year 3,288,382 - 3,288,382 2,294,740
Compensated Absences Payable Due in More Than One Year 392,824 - 392,824 371,679
Contract for Deed -Due in More Than One Year 664,293 - 664,293 1,985,222
General Obligation Bonds Payable -
Due Within More Than One Year 47,392,129 - 47,392,129 50,495,271
Total Liabilities 57,310>310 603,950 57,914,260 60,901,037
NET ASSETS
Invested in Capital Assets, Net of Related Debt 7,009,622 35,749,380 42,759,002 42,087,013
Unrestricted 56,949,749 5,437,867 fi2,387,616 49,876,951
TOTAL NET ASSETS $ 63,959,371 ~ 41,187,247 $ 105,146,618 $ 91,963,964
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See accompanying Notes to the Financial Statements.
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•
•
FUND FINANCIAL STATEMENTS
•
•
CITY OF MONTICELLO, MINNESOTA
BAf..ANCE SHEET
GOVERNMENTAL FUNDS
DECEMBER 31, 2006
(WITH COMPARATIVE TOTALS AS OF DECEMBER 31, 2005)
ASSETS
Cash and Investments
Special Assessments Receivable
Delinquent
Deferred
Accounts Receivable
Due from Other Governmental Units
Loans Receivable
Due from Other Funds
Land Held for Resale
Prepaid Items
TOTAL ASSETS
LIABILITIES AND FUND BALANCES
LIABILITIES
Accounts Payable
Other Accrued Liabilities
Contracts Payable
Due to Other Governmental Units
Due to Other Funds
Deferred Revenue
Escrow Deposits
Total Liabilities
FUND BALANCES
Reserved
Noncurrent Loans Receivable
Debt Retirement
Prepaid Items
Assets Held for Resale
Unreserved, Designated
Subsequent Year's Expenditures
Cantingencies
Unreserved, Undesignated Reported in:
General Fund
Special Revenue Funds
Capital Projects Funds
Housing and
Community Capital Redevelopment
General Center Outlay Revolving Authority
$ 6,940,443 $ 328,210 $ 1,460,175 $ 1,138,498
8,293 - 38,151 -
2,442 - 758,438 -
306,483 14,180 1,387 1,182
18,563 - - -
319,283 - - 20,000
557,488 - - -
- - 6,528,123 640,520
86,536 23,319 - 125
$ 8,239,531 $ 365,709 $ 8,786,274 $ 1,800,325
$ 355,010 $ 22,837 $ 32,370 $ 134,214
47,606 13,907 - 7,908
2,975 - 69,946 54,542
83,958 4,675 - -
- - - 188,548
57,512 3,005 796,590 -
2,272,557 5,854 - -
2,819,618 50,278 898,906 385,212
319,283 - - 20,000
86,536 23,319 - -
- - 6,528,123 640,520
5,014,094 - - -
- 292,112 1,359,245 754,593
Total Equity and Other Credits 5,419,913 315,431 7,887,368 1,415,113
TOTAL LIABILITIES AND FUND BALANCES $ 8,239,531 $ 365,709 $ 8,786,274 $ 1,800,325
~~
~J
See accompanying Notes to the Financial Statements.
(15)
Other
Sanitary Debt Capital Governmental Totai Govern mental Funds
Sewer Access Service Projects Funds 2006 2005
$ 7,049,816 $ 9,184,453 $ - $ 5,467,723 $ 31,569,318 $ 45,762,495
28,954 321,145 - 121,342 517,885 480,668
1,125,997 11,781,346 - 2,322,669 15,990,892 7,523,538
13,691 8,253 800 28,64$ 374,624 297,991
- 2,000,000 - - 2,018,563 -
- - - 1,172,945 1,512,228 1,634,579
- - - 557,488 236,934
- 356,537 - - 7,525,180 4,277,948
- - - 177 110
157 68
375
, ,
$ 8,218,458 $ 23,651,734 $ 800 $ 9,113,504 $ 60,176,335 $ 60,282,528
$ 4,253 $ _ $ 297,712 $ 11,413 $ 857,809 $ 671,244
186 69,607 86,138
- - 984,758 2,450 1,114,671 1,261,089
- - 154,762 1,0$4 244,479 68,261
- - 36$,940 - 557,488 236,934
1,154,951 14,124,399 - 2,444,011 18,580,468 8,006,060
- - - - 2,278,411 2,386,407
1,159,204 14,124,399 1,806,172 2,459,144 23,702,933 12,716,133
- - - i , i 72,945 1,512,228 1,634,579
- 9,170,798 - - 9,170,798 9,162,548
- - - 177 110,032 68,375
- 356,537 - - 7,525,180 4,277,948
- - - - 2,759,807
- - - - 551,961
- - - - 5,014,094 1,424,096
7,059,254 - - 5,481,238 14,946,442 18,425,893
- - (1,805,372) - {1,805,372} 9,261,188
7,059,254 9,527,335 (1,805,372) 6,654,360 36,473,402 47,566,395
$ 8,218,458 $ 23,651,734 $ 800 $ 9,113,504 $ 60,176,335 $ 60,282,528
(i 6}
THIS PAGE LEFT BLANK iNTENTIQNALLY
•
CITY OF MONTICEf_LO, MfNNESOTA
GOVERNMENTAL FUNDS
RECONCILATION OF THE GOVERNMENTAL FUNDS BALANCE SHEET TO THE
GOVERNMENT-WIDE STATEMENT OF NET ASSETS -GOVERNMENTAL ACTIVITIES
DECEMBER 31, 2006
Total Fund Balances for Governmental Funds $ 36,473,402
Total net assets reported for governmental activities in the statement of net assets
is different because:
Capital assets used in governmental funds are not financial resources and therefore are not
reported in the funds. Those assets consist of:
Land 6,363,420
Construction in Progress 20,523,835
Buildings, Net of $2,193,106 Accumulated Depreciation 10,162,201
Office Equipment and Furniture, Net of $75,794 Accumulated Depreciation 157,885
Vehicles, Net of $987,647 Accumulated Depreciation 596,326
Machinery and Shop Equipment, Ne# of $475,336 Accumulated Depreciation 392,326
Improvements, Net of $1,716,763 Accumulated Depreciation 2,088,335
Infrastructure, Net of $11,237,897 Accumulated Depreciation 21,196,178
Some of the City's property taxes and special assessments will be collected after year-end, but
are not available soon enough to pay for the current period's expenditures, and therefore, are
reported as deferred revenue in the governmental funds. 18,580,468
Interest on long-term debt is not accrued in governmental funds, but rather is recognized as an
expenditure when due. Accrued interest for general obliga#ion bonds is included in the statement
of net assets. (907,705}
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 activities:
General Obligation Bonds Payable (50,113,973}
Contract For Deed Payable (764,293)
Deferred Bond Issuance Cost 170,328
Unamortized Bond Premium (566,538)
Compensated Absences (392,824)
Total Net Assets of Governmental Activities $ 63,959,371
•
See accompanying Notes to the Financial Statements.
(17}
CITY OF MONTICELLO, MINNESOTA
STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES
GOVERNMENTAL FUNDS
YEAR ENDED DECEMBER 31, 2006
(WITH COMPARATIVE TOTALS FOR THE YEAR ENDED DECEMBER 31, 2005)
REVENUE
General Property Taxes
Special Assessments.
Licenses and Permits
Intergovernmental
Charges for Services
Fines and Forfeitures
Investment Earnings
Miscellaneous
Total Revenue
EXPENDITURES
Current
General Government
Public Safety
Public Works
Sanitation
Culture and Recreation
Economic Development
Capital Ou#lay
General Government
Public Safety
Public Works
Culture and Recreation
Debt Service
Principal
Interest and Fiscal Charges
Total Expenditures
Revenue Over (Under) Expenditures
OTHER FINANCING SOURCES (USES}
Transfer In
Transfer Out
Proceeds from Sale of Bonds
Premium on Bonds Issued
Total Other Financing Sources (Uses)
NET CHANGE IN FUND BALANCES
Fund Balance -Beginning of Year
FUND BALANCE -END OF YEAR
Housing and
Community Capital Redevelopment
General Center Outlay Revolving Authority
$ 4,520,275 $ 570,762 $ 1,498 $ 791,812
- - 121,721 -
758,718 - - -
283,597 - 130,000 -
641,448 982,255 - -
1,750 - - -
301,431 23,152 50,538 69,300
401,924 1,478 3,956,627 -
6,909,143 1,877,647 4,260,384 861,112
1,732,046
1,527,354 - 1,232,736 -
i ,832,815 - - -
474,045 - - -
624,780 1,324,360 - -
87,523 - - 1,966,865
5,614 - - -
6,100 - - -
56,776 - 86,810 -
172,090 58,645 - -
- - - 1,320,929
- - - 101, 029
6,519,143 1,383,005 1,319,546 3,388,823
390,000 494,642 2,940,838 (2,527,711)
667 250,000 213,380 2,613,283
(95,145) (669,950) (1,833,136) {169,725)
(94,478} (419,950) (1,619,756} 2,443,558
295,522 74,692 1,321,082 (84,153)
5,124,391 240,739 6,566,286 1,499,266
$ 5,419,913 $ 315,431 $ 7,887,368 $ 1,415,113
•
See accompanying Notes to the Financial Statements.
{18)
ether
Sanitary Debt Capital Governmental 7otai Governmental Funds
Sewer Access Service Projects Funds 2006 2005
$ - $ 505,804 $ - $ 563,409 $ 7,253,560 $ 7,476,106
324,337 863,397 - 697,064 2,006,519 3,341,537
- - - - 758,718 956,300
- - - 523,479 937,076 373,929
794,259 - - 378,909 2,796,871 4,014,956
- - - - 1,750 4,000
494,549 378,953 344,167 431,787 2,093,877 985,497
- - 198,518 6,113 4,564,660 3,165,372
1,613,145 1,748,154 542,685 2,600,761 20,413,031 20,317,697
- - - 11,670 1,743,716 1,544,446
- - - - 2,760,090 1,666,869
1,761,770 - - 259 3,594,844 4,635,519
- - - - 474,045. 492,446
_ - 322,076 2,271,216 2,361,302
_ 1,667 2,056,055 637,777
- - - - 5,614 32,705
- - - - 6,100 -
- - 12,688,930 - 12,832,516 11,996,071
- - - - 230,735 108,964
- 2,086,726 - - 3,407,655 1,911,126
- 2,272,409 - - 2,373,438 1,426,367
1,761,770 4,359,135 12,688,930 335,672 31,756,024 26,813,592
(148,625) {2,610,981) (12,146,245) 2,265,089 (11,342,993) (6,495,895)
- 2,619,231 2,471,602 13,209 8,181,372 4,128,010
{1,452,171) - (1,391,917} (2,319,328) (7,931,372) (3,878,010)
- - - - - 25,150,000
- - - - - 761,396
(1,452,171) 2,619,231 1,079,685 2,306,119) 250,000 26,161,396
(1,600,796) 8,250 (11,066,560) (41,030} (11,092,993} 19,665,501
8,660,050 9,519,085 9,261,188 6,695,390 47,566,395 27,900,894
$ 7,059,254 $ 9,527,335 $ (1,805,372) $ 6,654,360 $ 36,473,402 $ 47,566,395
(19)
•
THIS PAGE LEFT BLANK INTENTIONALLY
•
CITY OF MONTICEtLO, MINNESOTA
RECONCItfATION OF STATEMENT OF REVENUES, EXPENDITURES, AND
CHANGES IN FUND BALANCES OF THE GOVERNMENTAL FUNDS TO THE
GOVERNMENT-WIDE STATEMENT OF ACTIVITIES
GOVERNMENTAL ACTIVITIES
YEAR ENDED DECEMBER 31, 2U06
Net Change in Fund Balance -Total Governmental Funds $ (11,092,993)
Amounts reported #or governmental activities in the statement of activities are different because:
Governmental funds report capital outlays as expenditures. However, in the statement of
activities, assets are capitalized and the cost is allocated overtheir estimated useful lives and
reported as depreciation expense. This is the amount by which capital assets changed:
Capttal Asset Acquisitions and Disposals 13,051,926
Loss on Disposal of Capital Assets (1,850,754}
Depreciation Expense (2,250,378}
The governmental funds report bond proceeds as financing sources, white repayment of bond
principal is reported as an expenditure. In the statement of net assets, however, issuing debt
increases long-term liabilities and does not affect the statement of activities:
Repayment of Bond Principal 2,086,726
Repayment of Contract for Deed 1,320,929
Change in Accrued Interest Expense for General Obligation Bonds (5,937)
Amortization of Bond Issuance Costs (22,270)
Amortization of Bond Premium 22,774
Change in Compensated Absences (21,145}
Delinquent and deferred property taxes and special assessments receivable will be collected
subsequent to year-end, but are not available soon enough to pay for the current period's
expenditures, and therefore are deferred in the governmental funds.
Change in Deferred Revenue for Special Assessments 10,574,409
Change in Net Assets of Governmental Activities $ 11,813,287
See accompanying Notes to the Financial Statements.
(20)
CITY OF MONTICELLO, MINNESOTA
STATEMENT OF NET ASSETS
PROPRIETARY FUNDS
DECEMBER 31, 2006
(WITH COMPARATIVE TOTALS AS OF DECEMBER 31, 2005}
ASSETS Water Sewer
CURRENT ASSETS
Cash and Cash Equivalents $ 1,665,907 $ 1,754,209
Accounts Receivable 259,265 271,140
Due From Other Funds - -
Inventory - -
Prepaid I#ems 7,304 6,015
Total Current Assets 1,932,476 2,031,364
CAPITAL ASSETS
Land 208,143 975,937
Buildings 848,445 3,570,119
Office Equipment and Furniture 15,695 41,019
Vehicles 81,553 479,613
Machinery and Shop Equipment 166,267 427,834
Improvements Other Than Buildings 51,951 17,609,984
Infrastructure 13,917,826 14,592,681
Construction in Progress 3,492,183 2,353,252
Total Capital Assets 18,782,063 40,050,439
Less: Allowance for Depreciation (6,248,782} (17,482,411)
Total Capital Assets, Net 12,533,281 22,568,028
Total Assets 14,465,757 24,599,392
LIABILITIES AND NET ASSETS
CURRENT LIABILITIES
Accounts Payable 12,406 237,221
Other Accrued Liabilities 38,071 881
Due to Other Governments 17,206 404
Due to Other Funds - -
Deferred Revenue 38,959 -
Escrow Deposits - -
Total Liabilities 106,642 238,506
NET ASSETS
NET ASSETS
Invested in Capital Assets 12,533,281 22,568,028
Unreserved 1,825,834 1,792,858
Total Net Assets $ 14,359,115 $ 24,360,886
C
•
See accompanying Notes to tl~e Financial Statements.
(21)
Totals
Liquor Cemetery 2006 2005
$ 1,438,079 $ 43,142 $ 4,901,337 $ 3,961,922
5,946 450 536,801 474,307
- - - 44
581,974 - 581,974 568,107
8,386 - 21,705 15,373
2,034,385 43,592 6,041,817 5,019,753
5,600 19, 900 1,209,580 1,209,580
737,907 - 5,156,471 5,156,471
36,949 - 93,663 93,663
- - 561,166 545,813
64,251 - 658,352 619,573
81,040 85,891 97,828,866 17,791,202
- - 28,510,507 27,736,251
- - 5,845,435 4,507,456
925,747 105,791 59,864,040 57,660,009
(367,587} (15,880) (24,114,660) (22,582,618)
558,160 89,911 35,749,380 35,077,399
2,592,545 133,503 41,791,197 40,097,144
136,416 1,600 387,643 904,520
84,098 - 123,050 150,052
34,587 - 52,197 6,792
` - - 44
1,572 - 40,531 17,170
529 - 529 684
257,202 1,600 603,950 279,262
558,160 89,911 35,749,380 35,060,221
1,777,183 41,992 5,437,867 4,757,661
$ 2,335,343 $ 131,903 $ 41,187,247 $ 39,817,882
{22)
CITY OF MONTICELLO, MINNESOTA
STATEMENT OF REVENUES, EXPENSES, AND CHANGES IN NET ASSETS
PROPRIETARY FUNDS
YEAR ENDED DECEMBER 31, 2006
(WITH COMPARATIVE TOTALS AS OF DECEMBER 31, 2005}
OPERATING REVENUES
Sales
Costs of Goods Sold
Charges for Services
Total Operating Revenues
OPERATING EXPENSES
Personal Services
Telephone
Utilities
Supplies and Materials
Repairs and Maintenance
Depreciation
Insurance
Professional fees
Advertising
Miscellaneous
Total Operating Expenses
Net Income (Loss) from Operations
OTHER INCOME (EXPENSE)
Interest Income (Expense)
Contributions of Capital Assets
Rental Income
Total Other Income (Expense)
Net Income (Loss) before Operating Transfers
OPERATING TRANSFERS
Gain (Loss) on Sale of Capital Assets
Transfer Out
Total Operating Transfers
CHANGE IN NET ASSETS
Net Assets -Beginning of Year
NET ASSETS -END OF YEAR
Water Sewer
$ - $ -
742,146 1,043,208
742,146 .1,043,208
183, 737 110,193
1,076 2,ao5
90,622 4,775
11 i ,535 23,609
_ 5,369 31,606
447,833 1,010,800
7,354 21,862
4,016 864,756
62,096 25,518
913,638 2,095,124
{i71,492) (1,051,916)
104,902 123,428
1,601,341 549,671
- 27,100
1,706,243 700,199
1,534,751 (351,717)
1,534,751 (351,717)
12,824,364 24,712,603
$ 14,359,115 $ 24,360,886
•
•
See accompanying Notes to the Financial Statements.
(23)
•
Totals
•
Liquor Cemetery _ 2006 2005
$ 3,619,236 $ - $ 3,619,236 $ 3,540,572
(2,667,929) - (2,667,929) (2,614,197)
- 29,265 1,814,619 1,704,176
951,307 29,265 2,765,926 2,630,551
417,633 6,246 717,809 620,450
3,807 - 6,888 8,038
22,228 - 1 i 7,625 101,954
15,827 700 151,671 173,872
7,662 - 44,637 72,994
56,003 2,055 1,516,691 1,518,580
14,117 - 43,333 48,407
12,480 23,103 904,355 805,470
1,812 - 1,812 2,272
65,584 38,940 192,138 197,666
617,153 71,044 3,696,959 3,549,703
334,154 (41,779) (931,033} (919,152)
100,871 5,422 334,623 89,987
- 37,663 2,188,675 4,310,691
- - 27,100 21,730
100,871 43>085 2,550,398 4,422,408
435,025 1,306 1,619,365 3,503,256
(250,000)
(250,000)
1 s5,a25
1,306
- (47,306)
(250,000) {250,000)
(250,000) {297,306)
1,369,365 3,205,950
2,150,318 130,597 39,817,882 36,611,932
$ 2,335,343 $ 131,903 $ 41,187,247 $39,817,882
(24)
CITY OF MONTICELLO, MINNESOTA
STATEMENT OF CASH FLOWS
PROPRIETARY FUNDS
YEAR ENDED DECEMBER 37, 2006
{WITH COMPARATIVE TOTALS FOR THE YEAR ENDED DECEMBER 31, 2005)
Water
CASH FLOWS FROM OPERATING ACTIVITIES
Cash Receipts from Customers $ 703,167
Cash Paid to Suppliers (260,405)
Cash Paid to Employees (179,612)
Net Cash Flows frorn Operating Activities 263,150
CASH FLOWS FROM NONCAPITAL FINANCIAL ACTIVITIES
Rental Receipts -
Transfers Out -
Proceeds from Sale of Capita! Assets -
Net Cash Flows Provided (Used) by Noncapital Financing Activities -
CASH FLOW5 FROM CAPITAL RELATED FINANCING ACTIVITIES
Purchases of Capital Assets
CASH FLOWS FROM INVESTING ACTIVITIES
Interest Received on Investments 104,902
Net increase {Decrease) in Cash and Cash Equivalents 368,052
Cash and Cash Equivalents -Beginning of Year 1,297,855
CASH AND CASH EOt11VALENTS -END OF YEAR $ 1,665,907
CASH FLOWS FROM OPERATING ACTIVITIES
Operating Income {Loss) ~ $ {171,492)
Adjustments to Reconcile Net Income to Net Cash Provided by Operating Activities:
Depreciation 447,833
Loss on Disposal of Capital Assets -
Changes in Assets and Liabilities:
{Increase) Decrease in Accounts Receivable (37,502}
(Increase) Decrease in Due from Other Funds 14
(Increase) Decrease in Inventory -
(Increase) Decrease in Prepaid Expenses {1,491)
Increase (Decrease) in Accounts Payable (13,012}
Increase (Decrease} in Accrued Expenses 4,125
Increase {Decrease} in Contracts Payable -
Increase {Decrease) in Due to Other Governments 10,874
Increase (Decrease) in Due to Other Funds -
fncrease (Decrease) in Deferred Revenue 24,001
Increase (Decrease) in Escrow Deposits (200}
Net Cash Provided by Operating Activities $ 263,150
NONCASH TRANSACTIONS
Contributions of Capital Assets $ 1,601,341
•
See accompanying Notes to the Financial Statements.
(25)
Totals
Sewer Liquor Cemetery 2006 2005
$ 1.,017,277 $ 934,018 $ 28,815 $ 2,683,277 $ 2,753,259
.(807,934) 19,913 (62,343) (1,110,769} (1,502,964)
(110,470} (448,461) (6,268) (744,811) (613,012)
98,873 505,470 (39,796) 827,697 637,283
27,100 -
- (250,000)
27,100 (250,000)
27,100 21, 729
(250,000} (250,000)
- 22,500
(222,900) (205,771)
- - - - (49}
123,424 100,871 5,421 334,618 89,987
249,397 356,341 (34,375) 939,415 521,450
1
504
$12 1
081
73
,
, ,
,
8 77,517 3,961,922 3,440,472
$ 1,754,209 $ 1,438,079 $ 43,142 $ 4,901,337 $ 3,961,922
$ (1,051,916) $ 334,154 $ {41,779} $ (931,033) $ (919,152)
1,010,800 56,003 2,055 1,516,691 1,518,580
- - - - 50
(23,765) (777) (450) (62,494) (43,873}
30 - - 44 (44)
- (13,867) - (13,867) (12,132)
(2,196) {2,645} - (6,332) (1,151}
165,793 129,942 400 283,123 87,073
(277) (30,82$) (22) (27,002} 7,438
- - - (14,862)
404 34,127 - 45,405 821
- (44) - (44) 44
- (640) - 23,361 14,471
- 45 - (155) 20
$ 98,873 $ 505,470 $ (39,796) $ 827,697 $ 637,283
$ 549,671 $ - $ 37,663 $ 2,188,675 $ 4,310,691
(26)
•
THIS PAGE LEFT BLANK INTENTIONALLY
•
NOTES TO FINANCIAL STATEMENTS
•
CITY OF MONTICELLO, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
DECEMBER 31, 2006
NOTE 1 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
The basic financial statements of the City of Monticello have been prepared in conformity
with U.S. generally accepted accounting principles as applied to governmental units by the
Governmental Accounting Standards Board (GASB). Governments are also required to
follow the pronouncements of the Financial Accounting Standards Board {FASB) issued
through November 30, 1989 {when applicable) that do not conflict with or contradict GASB
pronouncements. Although the City has the option to apply 1=ASB pronouncements issued
after that date to its business-type activities and en#erprise funds, the City has .chosen not to
do so. The following is a summary of the significant accounting policies:
Financial Reporting Entity
As required by generally accepted accounting principles, these financial statements include
the City of Monticello {the primary government) and its component units. A component unit
is a legally separate entity for which the primary government is financially accountable, or
for which the exclusion of the component unit would render the financial statements of the
primary government misleading. The criteria used to determine if the primary government is
financially accountable for a component unit include whether or not the primary government
appoints the voting majority of the potential component unit's board, 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 Housing and Redevelopment authority (HRA) is fiscally dependent upon the City of
Monticello, and its governing body consists of City council members. Therefore, the HRA is
included as a component unit of the City. The HRA's financial data has been blended with
that of the City (i.e., reported as though its funds were funds of the City} and reported as a
special revenue fund.
Entities excluded from the financial statements:
Monticello Volunteer Fire ReliefAssociatian (Association)
The Association is organized as a nonprofit organization by its members to provide
pension and other benefits to such members in accordance with Minnesota Statutes.
The Association's board of directors is elected by the membership of the Association.
Alf funding is obtained in accordance with Minnesota Statutes whereby state aids flow to
the Association and tax levies are determined by the Association and reviewed by the
City. The Association pays benefits directly to its members:
Basic Financial Statements
Government-Wide Statements
The government-wide financial statements (i.e., the statement of net assets and the
statement of activities) display information about the Primary Government and its
component units. These statements include the financial activities of the overall City
government, except for fiduciary activities. Eliminations have been made to minimize
the double-counting of internal activities. 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 to
external parties for support.
(27)
CITY OF MONTICEI_LO, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
DECEMBER 31, 2006
NOTE 1 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
Basic Financial Statements (Continued)
Government-Wide Statements (Con#inued)
In the government-wide statement of net assets, both the governmental and
business-type activities columns: (a) are presented on a consolidated basis by column;
and {b} are reported on a full accrual, economic resource basis, which recognizes all
long-term assets and receivables as well as long-term debt and obligations. The City's
net assets are reported in three parts: (1 }invested in capital assets, net of related debt;
(2) restricted net assets; and (3} unrestricted net assets.
The statement of activities demonstrates the degree to which the direct expenses of
each function of the City's governmental activities and different business-type activity
are offset by program revenues. Direct expenses are those that are clearly identifiable
with a specific function ar activity. Program revenues include: (1) fees, fines, and
charges paid by the recipients of goods, services, or privileges provided by a given
function or activity; and (2) grants and contributions that are restricted to meeting the
operational or capital requirements of a particular function or activity. Revenues that are
not classified as program revenues, including all taxes, are presented as general
revenues.
Fund Financial Statements
The fund financial statements provide information about the City's funds, including its
blended component unit. Separate statements for each fund category--governmental
and proprietary are presented. The emphasis of governmental and proprietary fund
financial statements is on major individual governmental and enterprise funds, with each
displayed as separate columns in the fund #inancial statements. All remaining
governmental funds are aggregated and reported as nonmajor funds.
Proprietary fund operating revenues, such as charges for services, result from
exchange transactions associated with the principal activity of the fund. Exchange
transactions are those in which each party receives and gives up essentially equal
values. Nonoperating revenues, such as subsidies and investment earnings, result from
nonexchange transactions or incidental activities.
Comparative Data
Summarized comparative data for the prior year has been presented only for certain
sections of the accompanying financial statements, in order to provide an understanding
of the changes in the City's financial position and operations.
•
~2s}
CITY OF MONTICELLO, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
DECEMBER 31, 2006
NOTE 1 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
Basic Financial Statements (Continued)
Maior Governmentail Funds
The City reports the following major governmental funds:
General Fund
The general fund is the City's primary operating fund. It accounts for all financial
resources of the general government, except those required to be accounted for in
another fund.
Community Center Fund
The community center fund is used #o account for fhe revenues and expenditures
related to the community center.
Capital Outlay Revolving Fund
The capital outlay revolving fund is used to account for revenues and expenses
related to capita! outlay.
Housing and Redevelopment Authority
The housing and redevelopment authority fund is used to account for revenues and
expenses related to the blended component unit.
Sanitary Sewer Access Fund
The sanitary sewer access fiund is used to account for revenues and expenses
related to sanitary sewer connections.
Debt Service Fund
Debt service funds are used to account for the accumulation of resources for, and
the payment of, general long-term debt principal, interest and related costs.
Capital Proiec#s Fund
Capital projects funds are used to account for financial resources to be used for the
acquisition or construction of major capital facilities (other than those financed by
proprietary funds and trust funds).
Maior Propietary Funds
The City reports the following proprietary funds:
Water Utility Funds
These funds are used to account for the
residents.
Sewer Utility Funds
These funds are used to account for the
residents.
provisions of water services to the City's
provisions of sewer services to the City's
Liauor Fund
The liquor fund is used to account for the operations of the City's liquor store.
(29)
CITY OF MONTICELLO, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
DECEMBER 31, 2006
NOTE 1 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
Basic Financial Statements (Continued)
Maior Proprietary Funds (Continued)
Cemetery Fund
The cemetary fund is used to account for the operations of the City's cemetary.
Measurement Focus and Basis of Accounting
The government-wide and proprietary funds financial statements are reported using the
economic resources measurement focus and the accrual basis of accounting. Revenues
are recorded when earned, and expenses are recorded when a liability is incurred,
regardless of the timing of related cash flows. Property taxes are recognized as revenues
in the year for which they are levied. Grants and similar items are recognized as revenue
as scan 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. The City considers all
revenues to be available if they are collected within 60 days after the end of the current
period. Property and other taxes, licenses, and interest are all considered to be susceptible
to accrual. Expenditures are recorded when the related fund liability is incurred, except for
principal and interest on general long-term debt, compensated absences, and claims and
judgments, which are recognized as expenditures to the extent that they have matured.
Proceeds of general long-term debt and acquisitions under capital (eases are reported as
other financing sources.
When both restricted and unrestricted resources are available for use, it is the City's policy
to use restricted resources first, then unrestricted resources as they are needed.
Proprietary funds distinquish operating revenues and expenses from nonoperating items.
Operating revenues generally result from providing services or delivering goods in
connection with the proprietary fund's principal ongoing operations. Operating expenses
include the cost of sales and providing the service, administrative expenses and
depreciation. All other income and expenses are reported as nonoperating items.
Budgets
Budgets are adopted on a basis consistent with U.S. generally accepted accounting
principles. Annual appropriated budgets are adopted for the General Fund, the Community
Center, Capital Outlay Revolving, the Sanitary Sewer Access Fund, and the Debt Service
Fund.
Budgeted amounts are reported as originally adopted, or as amended by the City Council.
Individual amendments were not material in relation to the original appropriations, which
were adjusted. Budgeted expenditure appropriations lapse at year-end.
{30}
CITY OF MONTICELLO, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
DECEMBER 31, 2006
NOTE 1 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
Legal Compliance -Budgets
The City follows these procedures in establishing the budgetary data reflected in the
financial statements:
1. 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.
2. Public hearings are conducted to obtain taxpayer comments, and the final fax levy and
budget are adopted.
3. The City Administrator is authorized to transfer~budgeted amounts between departments
within any fund; however, any revisions that alter the total expenditures of any fund must
be approved by the City Council
4. Formal budgetary integration is employed as a management control device during the
year for the general fund, special revenue funds and enterprise funds, Formal
budgetary integration is not employed for the capital projects and debt service funds.
5. Budgets are adopted on a basis consistent with generally accepted accounting
principles. Budgeted amounts are as originally adopted, or as amended by the City
Council.
Cash and Investments
Cash balances from all funds are combined and invested to the extent available in
certificates of deposit and other allowable investments. Earnings from investments are
allocated to the respective funds on the basis of applicable cash balance participation by
each fund.
For purposes of the statements of cash flows, all highly liquid investments with a maturity of
three months or less when purchased are considered to be cash equivalents.
State and focal ordinances authorize the City to invest (short-term and long-term} in
certificates of deposit (considered deposits for risk categorization purposes), U.S. Treasury
obligations, U.S. agency issues, high-grade commercial paper, Bankers' Acceptances,
Repurchase Agreements and certain corporate bonds.
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. Other investments are reported
at fair value.
~~
~~
(31)
CITY OF MONTICELLO, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
DECEMBER 31, 2006
NOTE 1 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
Property Tax Credits
Property taxes on homestead property {as defined by state statutes) are partially reduced
by property tax credits. These credits are paid to the City by the state in lieu of taxes levied
against homestead property. The state remits these credits through installments each year.
These credits are recognized as revenue by the City at the time of collection.
Property Tax Revenue Recoqnition
Property tax levies are set by the City Council in December of each year, and are certified to
the County Auditor for collection in the following year. !n Minnesota, counties act as
collection agents for all property taxes. Such taxes become a lien on property on January 1
and are recorded as receivables by the City at that date. Real property taxes may be paid by
taxpayers in two equal installments on May 15 and October 15. Persona! property taxes may
be paid on February 28 and June 30. The County provides tax settlements to cities and
other taxing districts three times a year.
Within the governmental fund fiinancial statements, the City recognizes property tax revenue
when it becomes both measurable and available to finance expenditures of the current
period. The portion of delinquent taxes not collected by the City in January is fully offset by
deferred revenue because i# is not available to finance current expenditures. Deferred
revenue in governmental activities is susceptible to full accrual on the government-wide
statements.
Special Assessmen# Revenue Recoqnition
Special assessments are levied against benefited properties for the cost or a portion of the
cost of special assessment improvement projects in accordance with state statutes. These
assessments are collectible by the City over a term of years usually consistent with the term
of the related bond issue. Collection of annual installments {including interest} is handled by
the County Auditor in the same manner as property taxes. Property owners are allowed to
(and often do) prepay future installments without interest or prepayment penalties.
Within the fund financial statements, the revenue from special assessments is recognized
by the City when it becomes measurable and available to finance expenditures ofi the
current fiscal period. In practice, current and delinquent special assessments received by
the City are recognized as revenue for the current year. Special assessments are collected
by the County and remitted by December 31. Assessments remitted to the City the following
January are also recognized as revenue for the current year. All remaining delinquent,
deferred and special deferred assessments receivable in governmental funding are
completely offset by deferred revenues. Deferred revenue in governmental activities is
susceptible to #ull accrual on the government-wide and proprietary fund statements.
•
{32)
CITY OF MONTICELLO, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
DECEMBER 31, 2006
NOTE 1 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
Special Assessment Revenue Recognition (Continued)
Once a special assessment roll is adopted, the amount attributed to each parcel is a lien
upon that property until fulE payment is made or the amount is determined to be excessive
by the City Council or court action. If special assessments are allowed to go delinquent, the.
property is subject to tax forfeit sale and the first proceeds of that sale {after costs, penalties
and expenses of sale) are remitted to the City in payment of delinquent special
assessments. Generally, the City will collect the full amount of its special assessments not
adjusted by City Council or court action. Pursuant to state s#atutes, a property shall be
subject to a tax forfeit safe after three years unless it is homesteaded, agricultural or
seasonal recreational land in which event the property is subject to such sale after five
years.
Inventories
inventories are valued at lower of cost (average cost) or market.
Short-Term Interfund Receivables(Pavables
During the course of operations, numerous transactions occur between individual funds for
goods provided or services rendered. These receivables are classified as "due from other
funds" or "due to other funds" on the balance sheets of the #und financial statements.
Land Held For Resale
These assets are recorded in the governmental fund which purchased them at the lower of
cost or market. Fund balance is reserved in an amount equal to the land's carrying value as
the related funds are not available for appropriation.
Capital Assets
Capital assets are capitalized at historical cost, estimated historical cost, or in the case of
contributions, at their estimated fair market value at the time received. The cost of normal
maintenance and repairs that do not add to the value of the asset or materially extend asset
lives are not capitalized.
Capital assets are recorded in the entity-wide statements, but are not reported in the fund
financial statements. Capital assets are depreciated using the straight-line method over
their estimated useful lives. Since surplus assets are generally sold for an immaterial
amount when declared as no longer needed #or City purposes, no salvage value is taken
into consideration for depreciation purposes. Useful lives vary from 10 to 40 years for
Infrastructure, 5 to 20 years for Vehicles and Office Furniture and Equipment, 12 to 40
years for Buildings, and 10 to 20 years for improvements. Capital assets not being
depreciated include land and construction in progress.
Property, plant and equipment used by proprietary funds are stated at cost or estimated
historical cost. Contributed fixed assets are recorded at estimated fair market value at the
time received. Net interest costs are capitalized on projects during the construction period. ,
(33}
NOTE 1
CITY OF MONTICELLO, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
DECEMBER 31, 2006
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
Compensated Absences
City employees earn vacation days based upon the number of completed years of service.
The City compensates employees far unused vacation upon #ermination of employment.
Employees are entitled to paid sick leave at various rates for each month of full-time
service. Full-time employees who resign or leave city employment voluntarily and in good
standing, after giving proper notice, shall be compensated for up to 50 days of unused sick
leave under the following guidelines:
For union employees, one-fourth of the unused sick leave times the hourly rate at the time
of giving notice is paid. After five years of non-union employment, one-fourth ofi the
unused sick leave times the hourly rate at the time of giving notice is paid.
After ten years of employment, all employees accrue one half of the unused sick leave,
times the hourly rate at the time of giving notice.
Long-Term Obligations
In the entity-wide financial statements, long-term debt and other long-term obligations are
reported as liabilities in the applicable governmental activities. Bond premiums and
discounts are deferred and amortized over the life of the bonds using the straight-line
method. Bond issue costs, if material, are reported as deferred assets and amortized over
the term of the related debt using the straight-line method.
In the governmental #und financial statements, band premiums and discounts, as well as
bond issue costs are recognized during the current period. The face amount of the debt
issue is reported as on other financing source. Premiums received on debt issuances are
reported as other financing sources while discounts are reported as other financing uses.
Issue costs are reported as debt service expenditures.
Fund Balance
In the governmenta! fiund financiaE statements, reservations of fund balance represent those
portions of fund balance not appropriable for expenditure or legally segregated for a specific
future use. Designated fund balances represent tentative plans for future use of financial
resources.
Interfund Transactions
Quasi-external transactions are accounted far a
Transactions that constitute reimbursements to a
made from it that are properly applicable
expenditures/expenses in the reimbursing fund
expenses in the fund that is reimbursed.
s revenues, expenditures or expenses.
fund for expenditures/expenses initially
to another fund, are recorded as
and as reductions of expenditures or
•
•
(34)
CITY OF MONTICELLO, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
DECEMBER 31, 2006
NOTE 1 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
Interfund Transactions {Cantinuedl
All other interfund transactions, except quasi-external transactions and reimbursements, are
reported as transfers. All other interfund transfers are reported as operating transfers.
All Interfund transactions are eliminated except #or activity between governmental activities
and business-type activities far presentation in the entity-wide statements of net assets and
statements of activities.
NOTE 2 DEPOSITS AND INVESTMENTS
Deposits
The City maintains a cash and investment pool that is available for use by ail funds. Each
fund type's portion of this pool is displayed on the statement of net assets and the balance
sheet as "Cash and Investments." In accordance with Minnesota Statutes the City maintains
deposits at financial institutions which are authorized by the City Council.
Custodial Credit Risk -Custodial credit risk for deposits is the risk that in the event of a
bank failure, the City's deposits may not be returned to it. The City does not have a specific
deposit policy for custodial credit risk but rather follows Minnesota Statutes for deposits.
Minnesota Statutes require that all deposits be protected by insurance, surety bond, or
collateral. The market value of collateral pledged must equal 110% of the deposits not
covered by insurance or corporate surety bonds. Authorized collateral include: U.S.
government treasury bills, notes, or bands; issues of a U.S. government agency; genera!
obligations of a state or local government rated "A" or better; revenue obligations of a state
or local government rated "AA" or better; irrevocable standby letter of credit issued by a
Federal Home Loan Bank; and time deposits insured by a federal agency. Minnesota
Statutes require securities pledged as collateral be held in safekeeping in a restricted
account at the Federal Reserve Bank or at an account at a trust departments of a
commercial bank or other financial institution not owned or controlled by the depository.
The City's bank deposits of $2,520,936 at December 31, 2006 were fully insured or
collateralized.
(35)
CITY OF MONTICELLO, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
DECEMBER 31, 2006
NOTE 2 DEPOSITS AND INVESTMENTS {CONTINUED)
Investments
The City may also invest idle funds as authorized by Minnesota Statutes as follows:
• 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 and received the highest credit rating, is rated in one of the two highest
rating categories by a statistical rating agency, and all of the investments have a finial
maturity of thirteen months or less.
• General obligations rated "A" or better; revenue obligations rated "AA" or better.
• General obligations of the Minnesota Housing Finance Agency rate "A" or better.
• Bankers' acceptances of United States banks eligible far purchase by the Federal
Reserve System.
• Commercial paper issued by United States banks corporations or their Canadian
subsidiaries, of highest quality category by a least two nationally recognized rating
agencies, and maturing in 270 days or less.
• Guaranteed investment contracts guaranteed by United States commercial banks or
domestic branches of foreign banks or United States insurance companies if similar
debt obligations of the issuer or the collateral pledged by the issuer is in the top two
rating categories.
• Repurchase or reverse purchase agreement and securities lending agreements
financial institutions qualified as a "depository" by the government entity, with banks
that are members of the Federal Reserve System with capitalization exceeding
$10,000,000, a primary reporting dealer in U.S. government securities to the Federal
Reserve Bank of New York, or certain Minnesota securities broker-dealers.
Investments Held with Brokers
lrrterest Rate Risk
Interest rate risk is the risk that changes in interest rates will adversely affect the fair value
of an investment. Generally, the longer the maturity of an investment, the greater the
sensitivity of its fair value to changes in market interest rates. The City's investment policy
directs the City to manage its exposure to interest rate risk is by purchasing a combination
of shorter term and longer term investments and by timing cash flows from maturities to
meet cash requirements far ongoing operations. Information about the sensitivity of the fair
values of the City's investments to market interest rate risk fluctuations is provided by the
following table that shows the distribution of the City's investments by ma#urity:
Type
U.S. Government Securities
Negotiable Certificates of Deposits
Money Market
4M Fund
Total
$ 28,849,436
1,434,140
12 Months 13 to 24 25 to 60 More than
or Less Months Months 60 Months
$ 198,681 $ - $ 5,235,097 $ 23,415,658
95,000
482,396 856,744
3,652,854 3,652,854 - - -
292,852 292,852 - - -
$ 34,229,282 $ 4,239,387 $ 482,396 $ 8,091,841 $ 23,415,658
•
•
(36}
•
CITY OF MONTICELLO, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
DECEMBER 3'I, 2006
NOTE 2 DEPOSITS AND INVESTMENTS (CONTINUED)
Investments {Continued}
Investments Held with Brokers (Continued)
Credif Risk
Generally, credit risk is the risk that an issuer of an investment wil! not fulfill its obligation to
the holder of the investment. This is measured by the assignment of a rating by a nationally
recognized statistical rating organization. The City's investment policy does not further limit
the types of investments the City can purchase beyond those types authorized by statute.
The following chart summarizes year-end ratings for the City's investments as rated by
Moody's Investors Service:
•
Type
U.S. Government Securities
U.S. Government Securities
Negotiable Certificates of Deposits
Money Market
4M Fund
Total
Credit
Quality Rating Amoun#
AAA $ 28,252,594
Not Rated 596,842
Not Rated 1,434,140
Not Rated 3,652,854
Not Rated 292,852
$ 34,229,282
The Minnesota Municipal Money Market fund (4M-Fund) Trust is a common law trust
organized in accordance with the Minnesota Join# Powers Act, which invests only in
investment instruments allowable under Minnesota Statutes as described on the previous
page. Its investments are valued at amortized cost, which approximates fair value in
accordance with Rufe 2a-7 of the Investment Company Act of 1940. The amortized cost
method of valuation values a security at its cost on the date of purchase and thereafter
assumes a constant amortization to maturity of any discount or premium, regardless of the
impact of fluctuating interest rates on the market value of instruments.
The Minnesota Municipal Money Market Trust Fund does not have its own credit rating.
MBIA, Inc., who administers the Minnesota Municipal Money Market Fund Trust holds an
organization credit rating of Aa2.
Concentration of Credit Risk
The City places no limit an the amount that it may invest in any one issuer. More than 5
percent of the City's investments are in Federal Home Loan Association and Federal
National Mortgage Association. These investments are 44.62% and 30.17%, respectively,
of the City's total investments.
(37)
CITY OF MONTICELLO, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
DECEMBER 31, 2006
NOTE 3 LONG-TERM RECEIVABLES
The City maintains a revolving loan program to support economic development.
Qutstanding loans as of December 3i , 2006 were as fiollows:
Balance at
December 31, 2006
In June of 2000, a loan of $500,000 was made to a local business. The loan requires
83 monthly payments of $5,098, including interest at 49'° and a balloon payment of
$177,773, including interest 4% on June 1, 2007. This loan is funded by a Federal
Community Development Block Grant. $ 199,496
In July of 2002, a loan of $105,000 was made to a local business. The loan requires
178 monthly payments of $950, including interest at 7%. 78,441
In March of 2003, a loan of $200,000 was made to a local business. The loan requires
60 monthly payments of $1,084, including interest of 2.75°~ and a balloon payment
of $160,151 including interest of 2.75% on March 1, 2008. 169,668
fn April of 2003, a loan of $290,000 was made to a local business. The loan requires
54 monthly payments of $1,607, starting October 1, 2003, including interest at
2.75% and a balloon payment of $238,369, including interest of 2.75% on
April 1, 2008. 253,461
In April of 2003, a loan of $55,000 was made to a local business. The loan requires
120 monthly payments e# $525, including interest of 2.75°~. 36,564
In December 31, 2003, a loan of $74,763 was made to a local business. The loan
requires 120 monthly payments of $849, including interest at 6.50°~. 49,926
In May 30, 2004, a loan of $350,000 was made to a local business. The loan
requires 60 monthly payments of $1,483, including interest at 2.0%. 321,386
In April of 2005, a loan of $200,000 was made to a local business. The loan requires
240 monthly payments of $1,433, including interest at 6.0%. 190,916
In November of 2005, a loan of $200,000 was made to a local business. The loan
requires 240 monthly payments of $1,160, including interest at 3.5%. 192,372
Total Long-Term Receivables $ 1,492,230
•
(38)
CITY OF MONTICELLO, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
DECEMBER 31, 2006
NOTE 4 CAPITAL ASSETS
Governmental Activities
Capital asset activity for the year ended December 31, 2006 was as follows:
Governmental Activities:
Capital Assets,
Not Being Depreciated
Land
Construction in Progress
Tota! Capital Assets,
Not Being Depreciated
Capital Assets,
Being Depreciated
Buildings
Office Equipment and Furniture
Vehicles
Machinery and Shop Equipment
Improvements Other than Buildings
Infrastructure
Total Capital Assets,
Being Depreciated
Accumulated Depreciation for
Buildings
Office Equipment and Furniture
Vehicles
Machinery and Shop Equipment
Improvements Other than Buildings
infrastructure
Total Accumulated
Depreciation
Total Capital Assets,
Being Depreciated, Net
Governmental Activities
Capital Assets, Net
Beginning
Balance Increases
$ 6,084,918 $ 303,902
12,513,141 22, 523,163
Ending
Decreases Reclassifications Balance
$ (25,400) $
(14,512,469)
18,598,059 22,827,065 (14,537,869}
13,018,486 - -
241,703 26,887 (5,289)
1,748,887 245,712 (125,690)
1,089,552 61,574 (128,783)
3,044,913 1,048,485 (78,180)
33,513,517 3,354,672 (1,824,672)
52,657,058 4,737,330 (2,162,614)
- $ 6,363,420
- 20,523,835
- 26,887,255
- 13,018,486
- 263,301
(15,353) 1,853,556
- 1,022,343
- 4,015,218
- 35,043,517
(15,353) 55,216,421
(2,521,542) (334,743) - - {2,856,285)
(92,201) (18,504) 5,289 - (105,416)
(1,137,771) (155,943) 21,131 15,353 {1,257,230)
(566,565) (93,552) 30,100 - (630,017)
(1,826,461) (132,315) 31,893 - {1,926,883)
(12,580,868) (1,515,321) 248,850 - (13,847,339)
(18,725,408) (2,250,378) 337,263 15,353 (20,623,170)
33,931,650 2,486,952 (1,825,351) - 34,593,251
$ 52,529,709 $ 25,314,017 $ (16,363,220) $ - $ 61,480,506
Depreciation expense was charged to governmental functions as follows:
Governmental Activities:
General Government $ 7,823
Public Safety gg p90
Public Works 1,737,189
Parks, Culture and Recreation 417,276
Total Depreciation Expense, Governmental Activities $ 2,250,378
{39)
CITY OF MONTICELLO, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
DECEMBER 31, 2Q06
NOTE 4 CAPITAL ASSETS (CONTINUED}
Business-Tvpe Activities
Capital asset ac#ivity for the year ended December 31, 2006 was as follows:
Beginning
Balance
Business Activities:
Capital Assets, Not Being Depreciated
Land
Cons#ruction in Progress
Total Capital Assets,
Not Being Depreciated
Capital Assets, Being Depreciated
Buildings
Office Equipment and Furniture
Vehicles
Machinery and Shop Equipment
Improvements Other than Buildings
Infrastructure
Total Capital Assets,
Being Depreciated
Accumulated Depreciation for
i3uildings
Office Equipment and Furniture
Vehicles
Machinery and Shop Equipment
Improvements Other than Buildings
infrastructure
Total Accumulated Depreciation
Total Capital Assets,
Being Depreciated, Ne#
Business Activities
Capital Assets, Net
Transfers/
Additions
Transfers/
Disposals Reclassifications
$ 1,209,580 $ - $ - $ - $ 1,209,580
4,507,456 5,846,699 (4,508,722} - 5,845,433
5,717,036 5,846,699 (4,508,722) - 7,055,013
5,156,471 - - - 5,156,471
93,663 - - - 93,663
545,813 - - 15,353 561,166
619,573 38,778 - - 658,351
17,791,203 37,664 - - 17,828,867
27,736,252 774,257 - - 28,510,509
51,942,975 850,698 - 15,353 52,809,027
(2,017,271) (163,083) - - (2,180,354}
(26,865) (18,732} - - {45,597)
{508,510) (13,364) - (15,353) (537,227)
(515,761) (15,315) - - (531,076)
(9,010,678) (430,457) - - (9,441,135}
(10,503,531) (875,740) - - (11,379,271
(22,582,616) __ 1,516,691) - (15,353) (24,114,660
29,360,359 (665,992) - - 28,694,367
$ 35,077,395 $ 5,180,707 $ {4,508,722) $ - $ 35,749,380
Depreciation expense was charged to business #unctions as follows:
Business-Type Activities:
W ate r
Sewer
Liquor
Cemetery
Tota! Depreciation Expense, Business-Type Activities
Ending
Balance
$ 447,833
1,Oi 0,800
56,003
2,055
1, 516, 691
•
•
(40)
CITY OF MONTICELLO, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
DECEMBER 31, 2006
NOTE 5 INTERFUND RECEIVABLES, PAYABLES AND TRANSFERS
1. Due To/From Other Fund
Receivable Fund Payable Fund Amount Reason
Major Governmental Funds
General
Capital Projects $ 368,940
Housing and Redevelopment Authority 188,548
Total Due to General Fund $ 557,488 Operating Funds
2. Interfund Trans#ers
Interfund transfers for the year ended December 31, 2006, consisted of the #ollowing:
Amount Description
Maior Governmental Funds ' '
Transfers to General Fund #rom
Environmental Clean-up Fund $ 667 Close the Fund
Transfers to Housing and Redevelopment Authority from
Capital Outlay Revolving Fund 1,228,075 Share of AVR Land Sale
Capital Projects Fund 1,385,208 Share of AVR Land Sale
Total Transfers to Housing and Redevelopment Authority 2,6f 3,283
Transfer to Community Center Fund from
Liquor Fund 250,000 Annual Contribution
Transfers to Capital Outlay Revolving Fund from
Sewer Access Fund 193,720 Share of Project Cost
Storm Sewer Access Fund 1,570 Share of Project Cost
Water Access Fund 18,090 Share of Project Cost
Total Transfer to Capital Outlay Revolving Fund 213,380
Transfers to Debt Services Fund from
Housing and Redevelopment Authority 169,725 Transfer of Debt Payments
Community Center Fund 669,950 Trans#er of Debt Payments
Sewer Access Fund 1,211,064 Trans#er of Debt Payments
Storm Sewer Access Fund 258,821 Transfer of Debt Payments
Water Access Fund 309,671 Transfer of Debt Payments
Total Transfers #o Debt Service Fund 2,619,231
Transfer to Capital Projects Fund from
General Fund 88,645 Share of Project Costs
City Street Reconstruction Fund 1,151,493 Share of Project Casts
Capital Outlay Revolving Fund 605,061 Share of Project Costs
Sewer Access Fund 47,387 Share of Project Costs
Storm Sewer Access Fund 499,168 Share of Project Costs
Water Access Fund 79,848 Share of Project Costs
Total Transfer to Capital Projects Fund 2,471,602
Total Transfers to Major Funds 8,168,163
(41)
CITY OF MONTICELLO, MINNESOTA
NQTES TO FINANCIAL STATEMENTS
DECEMBER 31, 20t?6
NOTE 5 INTERFUND RECEIVABLES, PAYABLES AND TRANSFERS (CONTINUED}
2. lnterfund Transfers (Continued)
Transfers to Nonmajvr Governmental Funds
Transfer to Orderly Annexation Fund from
General Fund
Transfer to Storm Sewer Access Fund from
Capital Projects fund
Total Transfers to Nonmajor Governmental Funds
Total lnterfund Transfers
NOTE 6 OPERATING LEASES
Amount Description
$ 6,500 Annexation Costs
6,709 Share of Project Costs
13,209
$ 8,181,372
The City teases several pieces of office equipment under noncancelable operating leases.
Total costs for such leases were $51,447 for the year ended December 31, 2006, including
casts for maintenance and copies. The future minimum lease payments for these leases
are as follows:
Year Ending December 31, Amount
2007 $ 33,711
2008 33,711
2009 19,062
2010 17,730
2011 4,435
Total $ 108,649
•
•
{42)
CITY OF MONTICELLO, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
DECEMBER 31, 2005
NOTE 7 CITY INDEBTEDNESS
City indebtedness at December 31 , 2006 is composed of the following:
Initial Net
Amount Maturity Interest Outstanding
Description Issued Date Rate Principal
General Obligation Bonds:
2003A GO Improvement Bonds $ 2,420,000 Feb. 2015 3.71% $ 2,210,000
General Obligation Tax Increment Bands:
1989A Tax Increment Bonds $ 260,000 Feb. 2007 7.25% $ 30,000
2004A Tax increment Bonds 945,000 Feb. 2013 4.66% 780,000
Total General Obligation Tax Increment Bonds $ 1,555,000 $ 810,000
Special Assessments Bonds:
1999 Improvement Bonds $ 3,000,000 Feb. 2010 4.15% $ 1,250,000
2000A improvement Bands 2,015,000 Feb. 2016 5.38% 1,300,000
20006 Improvement Bonds 1,645,000 Feb. 2011 5.00% 725,000
2002 Improvement bonds 2,420,000 Feb. 2014 3.67% 1,830,000
2005 Improvement Bonds 25,150,000 Feb. 2023 6.00% 25,150,000
Total Special Assessment Bonds $ 34,230,000 $ 30,255,000
General Obligation Notes:
Project 93-14C Wastewater Treatment Note $ 14,700,000 Aug. 2018 4.08% $ 10,188,973
Public Project Revenue Bonds 2000A $ 7,555,000 Feb. 2015 6.27% $ 6,650,000
Contract for Deed $ 2,185,222 Dec. 2009 6.00% $ 764,293
{43}
CITY OF MONTICELLO, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
DECEMBER 31, 2006
NOTE 7 CITY INDEBTEDNESS (CONTINUED}
The following is a schedule of changes in City indebtedness for the year ended
December 31, 2006:
General Obligation Bonds
Bond Premium (Discount}
General Obligation No#e
Special Assessment Debt with
Governmental Commi#ments
General Obligation
Tax Increment Bonds
Public Project Revenue Bonds
Contract For Deed
Total
Payable
Beginning End of Due Within
of Year Additions Payments Year One Year
$ 2,420,000 $ - $ 210,000 $ 2,210,000 $ 215,000
589,312 - 20,774 568,538 19,636
10,835,699 - 646,726 90,188,973 673,382
31,065,000 - 810,000 30,255,000 1,840,000
970,000 - 160,000 810,000 130,000
6,910,000 - 260,000 6,650,000 430,000
2,085,222 - 1,320,929 764,293 100,000
$ 54,875,233 $ - $ 3,428,429 $ 51,446,804 $ 3,408,018
Minimum annual principal and interest payments required to retire long-term debt, are as
follows:
General
Long-Term Debt
Years _
rrnc[pa ~nferes~- Totals
2007 $ 3,388,382 $ 2,245,117 $ 5,633,499
2008 3,881,136 2,082,011 5,963,147
2009 5,289,327 1,883,359 7,172,686
2010 4,865,123 1,629,670 6,494,793
2011 4,996,452 1,397,774 6,394,226
2012-2016 22,849,307 3,582,859 26,432,166
2017-2021 4,708,539 539,941 5,248,480
2022-2023 900,000 38,675 938,675
Totals $50,878,266 $13,399,406 $64,277,672
•
•
(44}
CITY OF MONTICELLO, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
DECEMBER 3i, 2006
NOTE 8 DEFINED BENEFIT PENSION PLANS -STATE-WIDE
Plan Description
All full-time and certain part-time employees of the City of Monticello are covered by defined
benefit pension plans administered by the Public Employees Retirement Association of
Minnesota {PERA}. The PERA administers the Public Employees Retirement Fund {PERF),
which is acost-sharing, multiple-employer retirement plan. This plan is established and
administered in accordance with Minnesota Statutes, Chapters 353 and 356.
PERF members belong to either the Coordinated Plan or the Basic Plan. Coordinated Plan
members are covered by Social Security and Basic Plan members are not. All new
members must participate in the Coordinated Plan.
PERA provides retirement benefits as welt as disability benefits to members, and benefits to
survivors upon death of eligible members. Benefits are established by state statute, and
vest after three years of credited service. The defined retirement benefits are based on a
member's highest average salary for any five successive years of allowable service, age,
and years of credit at termination of service.
Two methods are used to compute benefits for PERA's Coordinated and Basic Plan
members. The retiring member receives the higher of step-rate benefit accrual formula
{Method 1) or a level accrual formula {Method 2}. Under Method 1, the annuity accrue! rate
for a Basic Plan member is 2.2 percent of average salary for each of the first 10 years of
service and 2.7 percent for each remaining year. The annuity accrual rate far a
Coordinated Plan member is 1.2 percent of average salary for each of the first 10 years and
1.7 percent for each remaining year. Under Method 2, the annuity accrual rate is 2.7
percent of average salary for Basic Plan members and 1.7 percent #or Coordinated Plan
members for each year of service. For PERF members hired prior to July 1, 1989 whose
annuity is calculated using Method 1, a full annuity is available when age .pies years of
service equal 90. Normal retirement age is the age for unreduced Social Security benefits
capped at 66 far Coordinated members hired on or after Juiy 1, 1989. A reduced retirement
annuity is also available to eligible members seeking early retirement.
There are different types of annuities available to members upon retirement. A single-life
annuity is a lifetime annuity that ceases upon the death of the retiree-no survivor annuity is
payable. There are also various types of joint and survivor annuity options available which
will be payable over joint fives. Members may also leave their contributions in the fund upon
termination of public service in order to qualify for a deferred annuity at retirement age.
Refunds of contributions are available at any time of members who leave public service, but
before retirement benefits begin.
r~
L
~a5}
CITY OF MONTICELLO, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
DECEMBER 31, 2006
NOTE 8 DEFINED BENEFIT PENSION PLANS -~ STATE-WIDE (CONTINUED}
Plan Description (Continued)
The benefit provisions stated in the previous paragraphs of this section are current
provisions and apply to active plan participants. 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.
The PERA issues a publicly available financial report that includes financial statements and
required supplementary information for Public Employee Retirement Fund and the Public
Employees Police and Fire Fund. That report may be obtained on the web at mnpera.org,
by writing to PERA at 60 Empire Drive #200, St. Paul, Minnesota, 55103-2088 or by calling
(651) 296-7460 or 1-800-652-9026.
Fundin_, Pq olicy
Minnesota Sfatutes Chapter 353 sets the rates for employer and employee contributions.
These statutes are established and amended by the state legislature. The City makes
annual contributions to the pension plans equal to the amount required by state statutes.
PERF Basic Plan members and Coordinated Plan members were required to contribute
9.10% and 5.50% respectively, of their annual covered salary in 2006. Contribution rates in
the Coordinated Plan will increase in 2007 to 5.75%. The City of Monticello is required to
contribute the following percentages of annual covered payroll: 11.78% for Basic Plan
PERF members, and 6.00% for Coordinated Plan PERF members. Employer contribution
rates for the Coordinated Plan will increase to 6.25%, effective January 1, 2007. The City's
contributions to the Public Employees Retirement Fund for the years ending December 31,
2006, 2005, and 2004 were $161,068, $135,315, and $129,637, respectively. The City's
contributions were equal to the contractually required contributions for each year as se# by
state statute.
City of Monticello Fire Relief Association
Plan Description
The City contributes to the City of Monticello Fire Relief Association (Association), a single
employer retirement system that acts as a common investment manager and administrator
for the City's firefighters. All ac#ive members of the fire department are members of the
Association.
Upon approval by the Board of Trustees, lump sum retirement benefits are either paid or
deferred as follows:
1. Benefits accrue and vest to members based on $2,175 per year of active service in the
#ire department and Association with 100% vesting at twenty years.
2. There is no maximum retirement benefit.
3. Members retiring with less than ten years of service forfeit their accrued benefits.
{46}
CITY OF MONTICELLO, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
DECEMBER 31, 2006
NOTE 8 DEFINED BENEFIT PENSION PLANS -STATE-WIDE {CONTINUED)
City of Monticello Fire Relief Association {Continued)
Plan Description fCantinued)
4. Members who separate from service and have at least ten years of active service and
membership but are less than 50 years of age are entitled to a deferred service pension
payable upon reaching the age of 50.
The Association also provides death benefits, whereby upon approval of application, the
beneficiaries of each deceased active member would receive $2,175 per year of service.
The City passes through state aids allocated to the plan in accordance with enabling state
statutes.
Annual Pension Cost and and Net Pension Obligation
The City's annual pension cost and net pension obligation to PERS for the year ended
December 31, 2006 is as follows:
Annual Required Contribution $ 3,000
Interest on Ne# Pension Obligation -
Adjustment to Annual Required Contribution -
Annual Pension Cost 3,000
Less Contribution Made 3,000
increase (Decrease) in Net Pension Obligation -
Net Pension Obligaiton -Beginning of Year -
Net Pension Obligation -End of Year $ -
The annual required contribution for the current year was determined as part of the
December 31, 2006, actuarial valuation using the entry age actuarial cost method. The
actuarial assumptions included (a) 5% investment rate of return and (b) age and service
retirement was assumed to occur at the age of 50. The assumptions did not include post
retirement benefit increases, which are funded by state satute when granted. Net assets
available for benefits exceeded the pension benefit obligation at December 31, 2005, 2004,
and 2003.
Three-Year Trend Information 2006
Annual Pension Cost (APC)
Percentage of APC Contributed
Net Pension Obligation
•
2005 2004
100% 100% 100%
(47}
CITY OF MONTICELLO, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
DECEMBER 31, 2006
NOTE 9
STEWARDSHIP COMPLIANCE AND ACCOUNTABILITY
Deficit Fund Balances
The City has deficit fund balances at December 31, 2006 as follows:
Captial Projects Fund
$ (1,805,372)
The City intends to fund these deficits through future tax levies, special assessment levies,
tax increments, transfers from other funds, and various other sources.
Expenditures in Excess of Budget
Actual expenditures exceeded 2006 budgets in the following funds:
Community Center Fund
Special Revenue Funds
Capital Outlay Revolving Fund
Sanitary Sewer Access Fund
Budget Expenditures Excess
$ 1,374,980 $ 1,383,005 $ 8,025
545,200 1,319,546 774,346
46,500 1,761,770 1,715,270
NOTE 10 RISK MANAGEMENT
The City participates in the League of Minnesota Cities Insurance Trust (LMCIT) property
and liability insurance program, a joint self-insurance plan designed and administered by
American Business Risk Services and structured to operate through local insurance
agents. Approximately 140 cities currently participate in the program.
The City has the following coverages with LMCIT: a basic package of property, inland
marine, automotive physical damage and liability; comprehensive general liability; public
officials errors and omissions; umbrella liability; boiler and machinery; and workers'
compensation.
The City pays an annual premium to LMCIT, which in turn pays the local agent's
commission and pays an administrative fee to American Business Risk Services. The
remaining premium is split between LMCIT and its reinsurers. The reinsurers in turn
reimburse LMCIT for a corresponding share of each loss.
A profit-sharing agreement also provides for a return to LMCIT of a share of the reinsurers'
portion of the premium if the loss experience is favorable.
•
X48)
•
CITY OF MONTICELLO, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
DECEMBER 31, 2006
NOTE 10 RISK MANAGEMENT (CONTINUED}
To protect against the possibility that LMCIT's share of the fosses will exceed its share of
the premium, LMCIT also purchases aggregate reinsurance. The foss experience has been
favorable the last three years and the City has received a return of part of the premiums
paid.
Settled claims resulting from these risks have not exceeded commercial insurance coverage
in any of the past three calendar years.
NOTE 11 CONSTRUCTION COMMITMENTS
The City entered into construction contracts for various construction projects started during
the year.
The following. contracts had been entered into and were at various stages of completion at
December 31, 2006:
Contract
2002-06C Cedar St. Dundas
2004-01 C 194/CSAH 18 Interchange
2005-02C School Blvd. Ext
2005-05C Meadow Oak Ave.
2005-11C Chelsea Rd. W. Ext.
2006-01 C 2006 Core St. Project
2006-02C Ornamental St. Lighting
2006-15C Dalton Avenue Extension
2006-18C Otter Creek Ind. Park Grd.
Totals
Contract
Amount*
$ 46,625
7,340,193
243,758
502,954
276,192
1,767,202
846,856
1,003,560
365,133
$ 12,392,473 $ 11,573,984
Expenses
Recorded to
Date for Work
Completed
$ 33,373
7,145, 257
215,068
475,912
272,586
1,589,391
751,555
735,073
355, 769
Contract Amount
Remaining far
Uncompleted
Work
$ 13,252
194,936
28,690
27,042
3,608
177, 811
95,301
268,487
9,364
* Including approved change orders.
(49)
$ 818,489
•
THIS PAGE LEFT BLANK INTENTIONALLY.
•
•
REQUIRED SUPPLEMENTARY INFORMATION OTHER THAN MD&A
•
CITY OF MONTiCELLO, MINNESOTA
BUGETARY COMPARISION SCHEDULE
GENERA L FUND
YEAR ENDED DECEMBER 31, 2006
(WITH COMPARATIVE ACTUAL AMOUNTS FOR THE YEAR ENDED DECEMBER 31, 2005)
.2006
Original Final 2006 Variance with 2005
Budget Budget Actuai Final Budget Actual
REVENUE
General Property Taxes $ 4,712,505 $ 4,712,505 $ 4,520,275. $ (192,230) $ 4,315,338
Licenses and Permits 819,025 819,025 758,718 (60,307) 956,300
Fines and Forfeitures - - 1,750 1,750 4,000
Intergovernmental
State
Market Value Credit - - 17,090 17,090 16,962
Mobile Home Market Value Credit - - 13,879 13,879 14,828
Fire Department Aid 95,000 95,000 98,518 3,518 94,839
State Police Aid 45,000 45,000 43,322 (1,678) 40,368
State Highway Aid 67,345 67,345 77,449 10,104 67,345
Recycling Incentive 13,000 13,000 9,619 (3,381) 10,201
PERA Aid 6,740 6,740 6,741 1 6,741
CountyJRegional
O#her 12,200 12,200 16,979 4,779 32,806
Total lntergovernmen#al 239,285 239,285 283,597 44,312 284,090
Charges for Services
Animal Impound Fees 24,000 24,000 28,528 4,528 24,002
Deputy Registrar Fees 268,000 268,000 285,811 17,811 277,437
Inspection Fees
Township Contract 85,000
45,675 85,000
45,675 268,689
46,890 183,689
215
1 162,879
49
906
Other 11,530 ,
11,530 ,
196
Total Charges for Services 422,675 422,675 641,448 218,773 514,420
Investment Earnings 203,415 203,415 301,431 98,016 310,832
Miscellaneous
Development Cos# Reimbursement 515,000 515,000 51,150 (463,850) 1,763
Sale of City Property 500 500 .237 (263) 33,989
Rents 12,615 12,615 61,638 49,023 14,149
Garbage Charge 91,200 91,200 115,273 24,073 119,310
Other 160,702 160,702 173,626 12,924 200,919
Total Miscellaneous 780,017 780,017 401,924 (378,093) 370,130
Total Revenue 7,176,922 7,176,922 6,909,143 (267,779) 6,755,110
•
The Notes to the Required Supplementary lnfom~ation are an Integral Part of this Schedule.
(50}
CITY OF MONTICELLO, MINNESOTA
BUGETARY COMPARISION SCHEDULE (CONTINUED)
GENERAL FUND
YEAR ENDED DECEMBER 31, 2006
(W1TW COMPARATIVE ACTUAL AMOUNTS FOR THE YEAR ENDED DECEMBER 31, 2005)
2006
Original Finai Variance with
Budget Budget Actual Final Budget Actual
EXPENDITURES
Generai Government
Mayor and Counci!
Current
Personal Services $ 26,955 $ 26,955 $ 26,056 $ 899 $ 26,668
Other Services and Charges 14,500 14,500 12,143 2,357 23,082
Total Mayor and Council 41,455 41,455 38,199 3,256 49,750
Administration
Current
Personal Services 272,760 272,760 291,117 (18,357} 179,154
Supplies 300 300 264 36 12,215
Other Services and Charges 17,525 17,525 12,211 5,314 12,478
Total Administration 290,585 290,585 303,592 (13,007} 203,845
Elections
Current
Personal Services 9,730 9,730 6,388 3,342 2,133
Supplies 5,650 5,650 246 5,404 -
Other Services and Charges 4,700 4,700 1,523 3,177 170
Total Elections 20,080 20,080 13,771 17,537 2,303
Finance
Current
Personal Services 225,665 225,665 260,016 (34,351) 189,063
Supplies 1,975 1,975 504 1,471 1,387
Other Services and Charges 18,835 18,835 9,194 9,641 19,183
Total Finance 246,475 246,475 269,714 (23,239) 209,633
Data Processing '
Gurrent
Other Services and Charges 100,040 100,040 90,138 9,902 78,852
Capital Outlay 6,000 6,000 0 6,000 5,523
Total Data Processing 106,040 106,040 90,138 15,902 84,375
Audit 38,900 38,900 42,480 (3,580) 36,851
Legal 66,665 66,665 130,523 {63,858) 83,193
Assessing 55,625 55,625 55,156 469 50,441
Insurance 101,940 101,940 124,898 (22,958) 95,222
Planning and Zoning
Current
Persona( Services 108,280 108,280 98,971 9,309 65,422
Other Services and Charges 5,650 5,650 22,619 {16,969} 8,727
Professional Services 183,800 183,800 191,390 {7,590} 230,386
Total Planning and Zoning 297,730 297,730 312,980 (15,250) 304,535
Deputy Registrar
Current
Personal Services 197,025 197,025 192,855 4,170 165,398
Other Services and Charges 17,125 17,125 12,427 4,698 15,654
Total Deputy Registrar 214,150 214,150 205,282 8,868 181,052
•
The Notes fo the Required Supplementary Information are an lnfegral Part of fhis Schedule.
{51)
CITY OF MONTICELLO, MINNESOTA
BUGETARY COMPARISION SCHEDULE (CONTINUED)
GENERAL FUND
YEAR ENDED DECEMBER 37, 2006
(WITH COMPARATIVE ACTUAL AMOUNTS POR THE YEAR ENDED DECEMBER 31, 2005}
EXPENDITURES (CONTINUED)
General Government (Continued}
City Hali
Current
Personal Services
Supplies
Utilities
Professional Services
Telephone
Other Services and Charges
Capita! Outlay
Total City Hall
Severance Benefits
Total General Government
Public Safety
National Guard
Police
Current
Contractual Services
Fire Department
Current
Personal Services
Supplies
Other Services and Charges
Repairs and Maintenance
Capital Outlay
Total Fire Department
Building Inspections
Personal Services
Other Services and Charges
Totai Building Inspections
Animal Control
Civi] Defense
Current
Personal Services
Other Services and Charges
Total Civil Defense
Total Public Safety
1...~
2006
Original Final Variance with 2005
Budget Budget Ac#ual Final Budget Actual
$ 9,930 $ 9,930 $ 8,616 $ 1,314 $ 6,815
19,810 19,810 17,705 2,105 32,924
16,200 16,200 21,510 (5,310} 19,476
6,400 6,400 12,023 (5,623) 18,125
23,200 23,200 21,953 1,247 22,629
48,170 48,170 60,273 (12,103) 54,258
- - - - 32,705
123,710 123,710 142,080 (18,370) 186,932
8,500 8,500 8,84? (347) 8,648
1,611,855 1,611,855 1,737,660 (114,577) 1,496,780
21,485 21,485 24,088 (2,603) 23,857
879,000 879,000 880,310 (1,310) 838,632
81,675 81,675 67,112 14,563 77,826
33,800 33,800 23,962 9,838 33,594
135,355 135,355 133,582 1,773 128,958
28,800 28,800 20,555 8,245 29,845
- - 136 (136) -
279,630 279,630 245,347 34,283 270,223
289,475 289,475 266,323 23,152 195,925
36,050 36,050 67,708 {31,658) 56,671
325,525 325,525 334,031 (8,506) 252,596
43,700 43,700 48,643 {4,943) 42,224
10,420 10,420 - 10,420 32
6,350 6,350 1,035 5,315 644
16,770 16,770 1,035 15,735 676
1,566,110 1,566,110 1,533,454 32,656 1,428,208
The Nofes to the Required Supplementary Informafron are an lnfegra! Parf of this Schedule.
(52)
CITY OF MONTICELLO, MINNESOTA
BUGETARY COMPARISION SCHEDULE (CONTINUED)
GENERAL FUND
YEAR ENDED DECEMBER 31, 2006
{WITH COMPARATIVE ACTUAL AMOUNTS FOR THE YEAR ENDED DECEMBER 31, 2005)
2006
Original Final Variance with 2005
Budget Budget Actual Fina! Budget Actual
EXPENDITURES {CONTfNUED)
Public Works
Administration and Engineering
Current
Persona! Services $ 252,955 $ 252,955 $ 280,075 $ (27,120) $ 153,964
Other Services and Charges 31,000 31,000 29,504 1,496 23,498
Professional Service 705,350 705,350 546,711 158,639 902,407
Capital Outlay - - - - -
Total Administration and Engineering 989,305 989,305 856,290 133,015 1,079,869
Streets
Current
Personal Services 364,780 364,780 350,703 14,077 256,531
Supplies 70,750 70,750 80,441 (9,691} 77,953
Other Services and Charges 17,800 17,800 17,868 (68) 18,141
Capital Outlay 197,500 197,500 56,776 140,724 7,916
Tatal Streets 650,830 650,830 505,788 145,042 360,541
Snow and Ice
Current
Personal Services
Supplies ~ 49,395
26,250 49,395
26,250 33,108
36,231 16,287
(9,981) 47,843
23,764
Other Services and Charges 2,500 2,500 892 1;608 779
Total Snow and Ice 78,145 78,145 70,231 7,914 72,386
Inspections 151,740 151,740 140,402 11,338 103,411
Street Lighting-Parking Lots 164,300 164,300 168,049 (3,749) 121,434
Shop and Garage 156,515 156,515 148,831 7,684 140,377
Total Public Works 2,190,835 2,190,835 1,889,591 301,244 1,878,018
•
The Notes fo the Required Supplementary Jnformafion are an Integra! Parf of this Schedule.
(53)
CITY OF MONTICELLO, MINNESOTA
BUGETARY COMPARISION SCHEDULE (CONTINUED}
GENERAL FUND
YEAR ENDED DECEMBER 31, 2006
(WITH COMPARATIVE ACTUAL AMOUNTS FOR THE YEAR ENDED DECEMBER 31, 2005)
.EXPENDITURES (CONTINUED)
Culture and Recreation
Parks and Recreation
Current
Personal Services
Supplies
Other Services and Charges
Capital Outlay
Total Parks and Recreation
Senior Citizens/Museum
Current
Personal Services
Other Services and Charges
TotaE Senior Citizens/Museum
Information Center
YMCA/Community Education
Ice Arena
Historical Church/School
Total Culture and Recreation
Sanitation
Current
Refuse Collection
Economic Development
Total Expenditures
EXCESS OF REVENUES OVER EXPENDITURES
OTHER FINANCING SOURCES (USES)
Transfer In
Transfer Out
Total Other Financing Sources (Uses}
NET CHANGE IN FUND BALANCES
Fund Balance -Beginning of Year
FUND BALANCE -END OF YEAR
2006
Original Final Variance with 2005
Budget Budget Actual Final Bud ec~t Actual
$ 352,425 $ 352,425 $ 301,441 $ 50,984 $ 285,$96
134,650 134,650 82,547 52,103 89,982
61,250 61,250 55,948 5,302 59,980
255,000 255,000 172,090 82,910 81,044
803,325 803,325 612,026 191,299 516,902
1,500 1,500 i ,334 166 1,503
88,440 88,440 90,167 (1,727) 84,047
89,940 89,940 91,541 (1,561} 85,550
- - 143 (143) 28
18,200 18,200
75,000 75,000
986,465 98fi,465
18,200 - 18,200
75,000 - 75,000
- - 199,485
796,870 i 89,595 895,165
477,785 477,785 474,045 3,740 492,446
76,990 76,990 87,523 (10,533) 73,446
6,910,040 6,910,040 6,519,143 402,125 6,264,063
266,882 266,882 390,000 134,346 491,047
- - 667 667 -
- - (95,145) (95,145) (136,900)
- - (94,478} (94,478) (136,900)
$ 266,882 $ 266,882 295,522 $ 39,868 354,147
5,124,391 4,770,244
$ 5,419,913 $ 5,124,391
The Notes to the Required Supplementary Information are an Integral Part o1 this Schedule.
(54)
CITY OF MONTICELLO, MINNESOTA
BUDGETARY COMPARISON SCHEDULE
COMMUNITY CENTER FUND
YEAR ENDED DECEMBER 31, 2006
(WITH COMPARATIVE ACTUAL AMOUNTS FOR THE YEAR ENDED DECEMBER 31, 2005)
REVENUES
Taxes
Intergovernmental
Membership Dues and Fees
Interest Earnings
Rent
Miscellaneous
Tota! Revenue
EXPENDITURES
Culture and Recreation
Salaries and Employee Benefits
Supplies
Professional Services
Advertising
Repair and Maintenance
Insurance
Utilities
Telephone
Equipment and Other Rental
Other
Capital Outlay
Total Expenditures
EXCESS OF REVENUES OVER EXPENDITURES
OTHER FINANCING SOURCES (USES}
Transfers In
Transfers Out
Total Other Financing Sources (Uses}
NET CHANGE IN FUND BALANCES
Fund Balance -Beginning of Year
FUND BALANCE -END OF YEAR
Original Final 2006 Variance with 2005
Budget Budget Actua! Final Budget Actual
$ 908,895 $ 908,895 $ 870,762 $ (38,133) $ 970,149
_ _ - - 1,311
887,700 887,700 971,183 83,483 840,928
3,000 3,000 23,152 20,152 4,026
- - 11,072 11,072 376
3,500 3,500 1,478 (2,022) 1,628
1,803,095 1,803,095 1,877,647 74,552 1,818,418
758,57fl 758,570 777,636 (19,066) 727,918
162,170 162,170 170,104 (7,934} 148,002
40,600 40,600 35,124 5,476 44,347
22,000 22,000 20,136 1,864 17,534
20,000 20,000 64,692 (44,692} 20,266
42,790 42,790 23,729 19,061 26,607
174,000 i 74,000 192,529 (i 8,529) 187,627
11,000 11,000 9,880 1,120 10,877
7,100 7,100 8,152 (1,052) 16,071
19,700 19,700 22,378 (2,678) 18,188
1 i 7,050 117,050 58,645 58,405 27,920
1,374,980 1,374,980 1,383,005 (8,025) 1,245,357
428,115 428,115 494,642 66,527 573,061
250,000 250,000 250,000 - 250,000
(669,950) (669,950} (669,950) {685,000)
(419,950) (419,950) (419,950) - (435,000)
$ 8,165 $ 8,165 74,692 $ 66,527 138,061
240,739
$ 315,431
i 02,678
$ 240,739
•
The Notes to the Required Supplementary lnforrnafion are an Integral Part of this Schedule.
(55)
CITY OF MONTICELLO, MINNESOTA
BUDGETARY COMPARISION SCHEDULE
CAPITAL OUTLAY REVOLVING FUND
YEAR ENDED DECEMBER 31, 2006
(WITH COMPARATIVE ACTUAL AMOUNTS FOR THE YEAR ENDED DECEMBER 31, 2005)
Original Final 2006 Variance with 2D05
Bud e4 t Budget Actual Final Budget Actual
REVENUES
Taxes $ - $ - $ i ,498 $ 1,498 $ 99,160
Special Assessments 90,925 90,925 121,721 30,796 146,030
Intergovernmental Revenues - - 130,000 130,OOD -
Interest Earnings 36,OD0 36,000 50,538 14,538 51,486
Miscellaneous 500,000 500,000 3,956,627 3,456,627 1,832,237
Total Revenue 626,925 626,925 4,260,384 3,633,459 2,128,913
EXPENDITURES
Public Works
Supplies - - 92 (92) 30,807
Professional Services 50,000 50,000 1,197,861 (1,147,861) 166,661
Other - - 34,783 {34,783) 41,193
Capital Outlay 495,2D0 495,200 86,810 408,390 85,365
Total Expenditures 545,200 545,2D0 1,319,546 {774,346) 324,026
EXCESS OF REVENUES OVER EXPENDITURE 81,725 $1,725 2,940,838 2,859,113 1,804,887
OTHER FENANClNG 50URCE5 (USES)
Proceeds from Contract for Deed - _ _ _
Transfers En - - 213,380 213,380 -
Transfers Out _ - (1,833,136} (1,833,136) (254,839)
Total Other Financing Sources (Uses) (1,619,756) (1,619,756) {254,839)
NET CHANGE IN FUND BALANCES $ 81,725 $ 81,725 i ,321,082 $ 1,239,357 1,550,048
Fund Balance -Beginning of Year' 6,566,286 5,016,238
FUND BALANCE -END OF YEAR $ 7,887,368 $ 6,566,286
•
The Notes to fhe Required Supplementary Information are an Integral Part of this Schedule.
(56)
CITY OF MONTICELLO, MINNESOTA
BUDGETARY COMPARISION SCHEDULE
SANITARY SEWER ACCESS FUND
YEAR ENDED DECEMBER 31, 2006
(WITH COMPARATIVE ACTUAL. AMOUNTS FOR THE YEAR ENDED DECEMBER 31, 2005)
Original Final 2006 Variance with 2005
Budget Budget Actual Final Budget Actual
REVENUES
Special Assessments $ 240,641 $ 240,641 $ 324,337 $ 83,696 $ 665,152
Hook-up Fees 1,312,000 1,312,000 794,259 {517,741 } 1,542,632
Interest 117,000 117,000 494,549 377,549 136,566
Total Revenue 1,669,641 1,669,641 1,613,145 (56,496) 2,344,350
EXPENDITURES
Public Works
Professional Services - - 1,7fl4,479 (1,704,479) 2,684,240
Capital Emprovements 46,500 46,500 1,338 45,162 3,138
.Other - - 55,953 (55,953) 75
Total Expenditures 46,500 46,500 1,761,770 (1,715,270) 2,687,453
EXCESS OF REVENUES OVER (UNDER)
EXPENDITURES 1,623,141 1,623,141 (148,625) {1,771,766) (343,103)
OTHER FINANCING SOURCES (USES)
Bond Proceeds - - - - 4,700,535
Bond Premium - - - - 159,949
Transfers In - - - 766,916
Trans#ers Out {1,221,490) (1,221,490) {1,452,171 } (230,681) (521,200)
Total Other Financing Sources (Uses) (1,221,490) {1,221,490} (1,452,171) {230,681 } 5,106,200
NET CHANGE IN FUND BALANCES $ 401,651 $ 401,651 (1,600,796) $ (2,002,447) 4,763,097
Fund Balance -Beginning of Year
FUND BALANCE -END OF YEAR
8,660,050 3,896,953
$ 7,059,254 $ 8,660,050
The !Votes to the Required Supplementary tnfarmatiorr are an Integral Part of this Schedule.
(57)
CITY OF MONTICELLO, MINNESOTA
NOTES TO THE REQUIRED SUPPLEMENTARY INFORMATION
DECEMBER 31, 2006
I. BUDGETARY INFORMATION
The City follows these procedures in establishing the budgetary data reflected in the financial
statements:
a. Prior to September 1, the City Administrator submits to the City Council a proposed operating
budget for the fiscal year commencing the following January 1. The operating budget includes
proposed expenditures and the means of financing them. The City Council adopts the
proposed budget as amended and adjusted by the Council and certifies the proposed proptery
tax levy to the County Auditor according to Minnesota Statues.
b. Public hearings are conducted at the Council's chambers in the Municipal Building.
c. On or before December 28, the final budget is legally enacted by Council resolutions and the
final property tax levy certified to the County Auditor.
d. Management is authorized to transfer budgeted amounts between departments within any
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, certain Special Revenue Funds,
and the Debt Service Fund. Expenditures may not legally exceed budgeted appropriations at
the total fund level. Monitoring of budgets is maintained at the expenditure category level (i.e.,
personal services, supplies, charges for services, and capital outlay) within each program. 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 Capital Projects.
Project-length financial plans are adopted for the Capital Projects Funds.
f. Budgets for the General, certain Special Revenue Funds, and Debt Service Fund are adopted
on a basis consistent with generally accepted accounting principals (GAAP). Budgeted
amounts are as originally adopted, or as amended by the City Council. All annual
appropriations lapse at fiscal year-end.
II. EXCESS OF EXPENDITURES OVER APPROPRIATIONS
Expenditures exceeded budgeted amounts in the following funds:
Budget Expenditures Excess
Community Center Fund $ 1,374,980 $ 1,383,005 $ 8,025
Special Revenue Funds
Capital Outlay Revolving Fund 545,200 1,319,546 774,346
Sanitary Sewer Access Fund 46,500 1,761,770 1,715,270
The above overages were considered by City management to be the result of necessary
expenditures critical to operations and were approved by the Council. These overages were
financed by greater than anticipated revenues or the use of fund balance as directed by the City
Council.
(58)
•
THIS PAGE LEFT BLANK INTENTIONALLY.
•
•
COMBINING FINANCIAL STATEMENTS
r~
CITY OF MONTICELLO, MINNESOTA
COMBINING BALANCE SHEET
NONMAJOR GOVERNMENTAL FUNDS
DECEMBER 31, 2006
(WITH COMPRATIVE AMOUNTS AS OF DECEMBER 31, 2005}
ASSETS
Cash and Investments
Accounts Receivable (Net of Allowance for
Estimated Uncollectibles)
Special Assessments Receivable
Delinquent
Deferred
Prepaid Items
Loans Receivable
Total Assets
LIABILITIES AND FUND BALANCES
LIABILITIES
Accounts Payable
Escrow Deposits
Accrued Expenses
Cantracts Payable
Due to Other Funds
Due to Other Governments
Deferred Revenue
Total Liabilities
FUND BALANCE {DEFICIT)
Reserved for Prepaid Items
Reserved for Debt Retirement
Reserved for Loans Receivable
Reserved for Land Held for Resale
Unreserved
Designated:
Recreation Programs
Capital improvements
Undesignated
Total Fund Balance (Deficit)
Total Liabilities and Fund Balances
Orderly
Shade Tree Transportation Annexation
$ 31,269 $ - $ 3,411
554 - 54
$ 31,823 $ - $ 3,465
$ $
95
10
f05
- $ -
31,718 - 3,465
31,718 - 3,465
$ 31,823 $ - $ 3,465
•
•
(59)
•
Economic Central
Development Water Minnesota
Library Authority Access Initiative
$ 10,763 $ 833,418 $ 654,711 $ 3,203
333 - 6,208 -
- - 17,212 -
- - 332,982 -
177 - _
- 719,988 - _
$ 11,273 $ 1,553,406 $ 1, 011,113 $ 3,203
$ _ $ - $ 142 $
91 - _ _
1,074 - -
- - 350,194 -
1,165 - 350,336 -
177 - _
- 719,988 - _
9,931 833,418 660,777 3,203
10,108 1,553,406 660,777 3,203
$ 11,273 $ 1,553,406 $ 1,011,113 $ 3,203
{sod
CITY OF MONTICELLO, MINNESOTA
COMBINGING .BALANCE SHEET (CONTINUED)
NONMAJOR GOVERNMENTAL FUNDS
DECEMBER 31, 200fi
{WITH COMPRATIVE AMOUNTS AS OF DECEMBER 31, 2005}
ASSETS
Cash and Investments
Accounts Receivable (Net of Allowance for
Estimated Uncallectibles}
Special Assessments Receivable
Delinquent
Deferred
Prepaid Items
Loans Receivable
TotaE Assets
LIABILITIES AND FUND BALANCES
LIABILITIES
Accounts Payable
Accrued Expenses
Contracts Payable
Due to Other Funds
Due to Other Governments
Deferred Revenue
Total Liabilities
FUND BALANCE (DEFICIT)
Reserved for Prepaid Items
Reserved for Loans Receivable
Reserved for Land Held for Resale
Undesignated
Total Fund Balance (Deficit)
Total Liabilities and Fund Balances
Economic Storm
Recovery Sewer Minnesota
Grant Access Investment
$ 17,485 $ 1,949,154 $ 521,254
- 11,476 -
- 66,410 -
- 979,639 -
- - 452,957
$ 17,485 $ 3,006,679 $ 974,211
$ - $ 9,504 $ -
- 435 -
- 1,046,049 -
- 1,055,988 -
- - 452,957
17,485 1,950,691 521,254
17,485 1,950,691 974,211
$ 17,485 $ 3,006,679 $ 974,211
(s1}
•
~.._~
Park Ci#y
Pathway Streets Environmental Totals
Dedication Reconstruction Clean-up 2006 2005
$ 783,194 $ 659,813 $ 48 $ 5,467,723 $ 5,434,826
5,590 4,433 - 28,648 22,334
32,490 5,230 - 121,342 82,910
55$,022 452,026 - 2,322,669 2,090,488
- - - 177 142
- - - 1,172
945 297
1
342
, ,
,
$ 1,379,296 $ 1,121,502 $ 48 $ 9,113,504 $ 8,928,042
$ 1,767 $ _ $ = $ 11,413 $ 10,154
186 8,902
2,015 - - 2,450 26,524
- - - 13,676
- - - 1,084 -
590,512 457,256 - 2,444,011 2,173,396
594,294 457,256 - 2,459,144 2,232,652
- - 177 142
- - - 1,172,945 1,297,342
785,002 684,246 48 5,481,238 5,397,906
785,002 664,246 48 6,654,360 6,695,390
$ 1,379,296 $ 1,121,502 $ 48 $ 9,113,504 $ 8,928,042
~~
~J
(62)
CITY OF MONTICELLO, MINNESOTA
COMBINING STATEMENT OF REVENUES, EXPENDITURES AND
CHANGES IN FUND BALANCES
NONMAJOR GOVERNMENTAL FUNDS
YEAR ENDED DECEMBER 31, 2006
(WITH COMPRATIVE ACTUAL AMOUNTS AS OF THE YEAR ENDED DECEMBER 31, 2005)
REVENUES
General Property Taxes
Intergovernmental
Special Assessments
Charges for Services
Investment Earnings
Miscellaneous
Total Revenue
EXPENDITURES
Gurrent
General Government
Culture and Recreation
Public Works
Capital Projects
Economic Development
Total Expenditures
REVENUE OVER (UNDER) EXPENDITURES
OTHER FINANCING SOURCES (USES)
Bond Proceeds
Bond Premium
Transfer In
Transfer Out
Total Other Financing Sources (Uses)
NET CHANGE !N FUND BALANCES
Fund Balance (Defici#) -Beginning of Year
FUND BALANCE (DEFICIT) -END OF YEAR
Orderly
Shade Tree Transportation Annexation
$ 28,629 $ 14,762 $ 6,794
- 69 -
1,480 21 -
1,378 - -
- 6,113 -
31,487 20,965 6,794
- 11,670 -
24,668 - -
- - 322
24,668 11,670 322
6,819 9,295 6,472
- - 6,500
- - 6,500
6,819 9,295 12,972
24,899 (9,295) (9,507)
$ 31,718 $ - $ 3,465
•
•
(63)
•
•
Economic Central
Development Water Minnesota
Library Authority Access Initiative
$ 35,061 $ _ $ _ $ _
- - 106,327 -
120 - 161,204 -
368 77,015 66,816 230
35,549 77,015 334,347 230
38,338 - _ _
- 259 -
- 1,345 - _
38,338 1,345 259 _
(2,789} 75,670 334,088 230
- - {407,609) _
- - (407,609) -
{2,789) 75,670 (73,521) 230
•
12,897 1,477,736 734,298 2,973
$ 10,108 $ 1,553,406 $ 660,777 $ 3,203
{64)
CITY OF MONTICELLO, MINNESOTA
COMBINING STATEMENT OF REVENUES, EXPENDITURES, AND
CHANGES IN FUND BALANCES (CONTINUED)
NONMAJOR GOVERNMENTAL FUNDS
YEAR ENDED DECEMBER 31, 2006
(WITH COMPRATIVE ACTUAL AMOUNTS AS OF THE YEAR ENDED DECEMBER 31, 2005)
REVENUES
General Property Taxes
I ntergovemmental
Special Assessmen#s
Charges for Services
Investment Earnings
Miscellaneous
Total Revenue
EXPENDITURES
Current
General Government
Culture and Recreation
Public Works
Economic Development
Total Expenditures
REVENUE OVER (UNDER) EXPENDITURES
OTHER FINANCING SOURCES (USES)
Bond Proceeds
Bond Premium
Operating Transfer In
Operating Transfer Out
Total Other Financing Sources (Uses)
NET CHANGE IN FUND BALANCES
Fund Balance (Deficit} -Beginning of Year
FUND BALANCE (DEFICIT) -END OF YEAR
Economic Storm
Recovery Sewer Minnesota
Grant Access Investment
$ - $ - $ -
- 310,277 -
- 182,122 -
1,254 121,982 50,926
1,254 614,381 50,926
- 181,172 -
- 181,172 -
1,254 433,209 50,926
- 6,709 -
- (759,559} -
- (752,850} -
1,254 (319,641) 50,926
16,231 2,270,332 923,285
$ 17,485 $ 1,950,691 $ 974,211
{65)
•
•
r~
~~
•
Park City
Pathway Streets Environmental Totals
Dedication Reconstruction Clean-up 2006 2005
$ - $ 478,163 $ - $ 563,409 $ 578,571
523,410 - 523,479 88
528
159,514 120,946 - 697,064 ,
1,469
225
33,962 - 378,909 ,
1,116
600
54,955 56,815 48 431,787 ,
154,360
- - 6,113
248,431 1,179,334 48 2,600,761 3,407,284
- - 11,670 80, 371
70,396
7,502 -
- 259
322,076 77,964
329,744
- 1
667 21
745
70,396 7,502 - ,
335
672 ,
509
82
, ,
4
178,035 1,171,832 48 2,265,089 2,897,460
_ - - - 213,775
- - 7,267
- 13,209 136, 900
- (1,151,493) (667) (2,319,328) (1,306,300)
- (1,151,493) (667) {2,306
119) (948
358)
, ,
178,035 20,339 (619) (41,030) 1,949,102
606,967 643,907 667 6
695
390 4
746
28
,
, ,
,
8
$ 785,002 $ 664,246 $ 48 $ 6,654
360 $ 6
695
390
, ,
,
{66}
THIS PAGE LEFT BLANK INTENTIONALLY
•
•
STATlSTiCA1. SECTi4N
(UNAUDITED}
C7
CITY OF MONTICELLO, MINNESOTA
BOND INDEBTEDNESS
GENERAL OBLIGATION BONDS
DECEMBER 34, 2006
(UNAUDITEp~
General Obligation
#mprovement
Bond Series 2003A
Year Payable Principal
2007 $ 215,000
2008 225,000
2009 230,000
2010
2011
2012
#nterest
$ 73,045
67,095
60,325
235,000 52,999
245,000 44,892
250,OOD 36,042
2013 260,000 26,605
2014 270,000 16,465
209 5 280,000 5,600
Total $ 2,210,000 $ 383,068
Original Amount x.420.000
Average rate of 3.7144%
interest
Payment dates February 1 February 1
August 1
~~
~J
(67)
CITY OF MONTICELLO, MINNESOTA
BOND INDEBTEDNESS
GENERAL OBLIGATION SPECIAL ASSESSMENT BONDS
DECEMBER 31, 2006 '
(UNAUDITED)
General Obligation General Obligation General Obligation
Improvement Bond Improvement Bond Improvement Bond
Series 19996 Series 2000A Series 20008
Year Payable Principal Interest Principal Interest Principal Interest
2007 $ 305,000 $ 44,301 $ 150,000 $ 65,505 $ 145,000 $ 32,045
2008 310,000 32,078 150,000 57,930 145,000 25,049
2009 315,000 19,499 155,000 50,114 145,000 17,980
2010 320,000 6,560 160,000 41,923 145,000 10,839
2011 - - 160,000 33,443 145,000 3,625
2012 - - 95,000 26,574 - -
2013 - - 100,000 21,235 - -
2014 - - 105,000 15,571 - -
2015 - - 110,000 9,578 -
2016 - - 115,000 3,249 - -
2017 - - - - - -
2018 - - - - - -
2019 - - -~ - - -
2020 - - - - - -
2021 - - - - - -
2022 - - - - - -
2023 - - - - - -
Totals $ 1,250,000 $ 102,438 $ 1,300,000 $ 325,122 $ 725,000 $ 89,538
Original
Amount X3.000.000 $2.015A00 $1.645.000
Average Rate
of Interest 4.1569% 5.3826% 4.9990%
Payment
gates February 1 February 1 February 1 February 1 February 1 February 1
August 1 August 1 August 1
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(68)
General Obiigation General Obligation
Improvement Bond Improvement Bond
Series 2002 Series 2005A Total
Principal Interest Principal Interest Principal Interest
$ 230,000 $ 61,630 $ 1,010,000 $ 1,085,150 $ 1,840,000 $ 1,288,631
235,000 54,825 1,430,000 1,027,200 2,270,000 1,197,082
245,000 47,079 2,295,000 938,731 3,155,000 1,073,403
255,000 38,385 2,350,000 828,412 3,230,000 926,119
265,000 28,760 2,405,000 715,481 2,975,000 781,309
275,000 18,362 2,450,000 603,238 2,820,000 648,174
285,000 7,300 2,520,000 491,413 2,905,000 519,948
40,000 800 2,575,000 383,212 2,720,000 399,583
- - 2,255,000 286,613 2,365,000 296,191
- - 2,310,000 195,313 2,425,000 198 562
- - 705,000 135,093 705,000 135,013
- - 730,000 105,400 730,000 105,400
- - 390,000 81,600 390,000. 81,600
- - 405,000 64,706 405,000 64,706
- - 420,000 47,175 420,000 47,175
- - 440,000 28,900 440,000 28,900
- - 460,000 9,775 460,000 9,775
$ 1,830,000 $ 257,141 $ 25,150,000 $ 7,027,332 $ 30,255,000 $ 7,801,571
3.66$2% 4.2500%
February 1 February 1 February 1 February 1
August 1 August 1
(69)
CITY 0l= MONTICELLO, MINNESOTA
BOND INDEBTEDNESS
GENERAL OBLIGATION TAX INCREMENT BONDS
DECEMBER 3'[, 2006
(UNAUDITED)
General Obligation General Obligation
Tax Increment Refunding Tax Increment
Year Bond of 1989A Bond of 2004A Total
Payable Principal Interest Principal Interest Principal Interest
2007 $ 30,000 $ 1,328 $100,000 $ 37,232 $130,000 $ 38,560
2008 - - 105,000 32,870 105,000 32,870
20pg - - 105,000 27,883 105,000 27,883
2010 - - 110,000 22,508 110,000 22,508
2011 - - 115,000 16,739 115,000 16,739
2012 - - 120,000 10,360 120,000 10,360
2013 - - 125,000 3,500 125,000 3,500
Totals $ 30,000 $ 1,328 $780,000 $151,092 $810,000 $152,420
Original
Amount 90. 00
Average Rate
of Interest 7.2532% 4.6600%
Payment
Dates February 1 February 1 February 1 February 1
August 1 August 1
•
(70)
CITY OF MONTICELLO, MINNESOTA
BONDfNDEBTEDNESS
GENERAL OBLIGATION NOTE -PROJECT 93-14 WASTEWATER TREATMENT
DECEMBER 31, 2A06
(UNAUDITED}
Year
Payable Principal .interest Total
2007 $ 673,382 $ 408,911 $ 1,082,293
2008 701,136 381,157 1,082,293
2009 730,034 352,259 1,082,293
2010 760,123 322,169 1,082,292
2011 791,452 290,840 1,082,292
2012 824,073 258,219 1,082,292
2013 858,038 224,254 1,082,292
2014 893,403 188,889 1,082,292
2015 930,226 152,067 1,082,293
2016 968,567 113,726 1,082,293
2017 1,008,487 73,806 1,082,293
2018 1,050,052 32,241 1,082,293
Total $ 10,188,973 $ 2,798,538 $ 12,987,511
(71)
CITY OF MONTICELLO, MINNESOTA
BOND INDEBTEDNESS
PUBLIC PROJECT REVENUE BONDS
DECEMBER 31, 20Q6
(UNAUDITED}
Year
Payable
2007
2008
2009
2010
2011
2012
2013
2014
2015
Total
Original Amount
Average Rate of Interest
Payment Dates
Temporary Public
Project Revenue Bonds
Series 2000A
Principal Interest
$ 430,000 $ 390,112
480,000 363,950
505,000 335,631
530,000 305,875
870,000 263,994
920,000 209,175
950,000 151,905
970,000 92,500
995,000 31,094
$ 6,650,000 $ 2,144,236
6.268%
February 1 February 1
August 1
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C
(72}
CITY OF MONTICELLO, MINNESOTA
BOND INDEBTEDNESS
CONTRACT FOR DEED
DECEMBER 31, 2006
(UNAUDITED)
Year
Payable
Contract For Deed
Principal Interest
2007 $ 100,000 $ 45,858
2008 100,000 39,857
2009 564,293 33,858
Total $ 764,293 $ 119,573
Original Amount ~
Average Rate of interest 6.000%
Payment Dates December 31 December 31
•
(73)
CITY OF MONTICELLO, MINNESOTA
BOND INDEBTED NESS
TAX LEVIES TO RETIRE BONDED INDEBTEDNESS
DECEMBER 3i, 2006
(UNAUDITED)
General General General General
Obligation Obligation Obligation Obligation
Improvement Emprovement Improvement Improvement
Year of Refunding Bonds Bond Series Bond Series Bond Series
Levy Collection 1999 2000A 2000B 2002
2006 2007 $ 182,200 $ 133,300 $ 24,200 $ 174,600
2007 2008 183,300 135,400 25,000 177,500
2008 2009 .184,100 137,100 25,700 179,300
2009 2010 - 133,200 26,300 180,200
2010 2011 - 130,400 - 180,100
2011 2012 - 130,200 - 179,400
2012 2013 - 129,700 - (2,200)
2013 2014 - 128,800 - -
2014 2015 127,600 - =
2015 2016
2016 2017 - - - -
2017 2018 - - - -
201 a 2x19 - - - -
2019 2020 - - "
2020 2021 - - -
2021 2422 - - - "
Total $ 549,600 $ 1,185,700 $ 101,200 $ 1,068,900
* This tax levy is for tax increment financing projects. The levy has not been made
in the past and will only be made in the future if tax incremen# revenue is
insufficient to meet principal and interest payments.
Note: The Project 93-14C Wastewater Treatment General Obiigation Note requires annual
levies of $1,082,293 from 1998 to 2016, and $541,146 in 2017.
(74)
General
Obligation
improvement
Bond Series
2005A Totai
$ i ,159,800 $ 1,674,100
2,061,600 2,582,800
2,003,900 2,530,100
1,950,700 2,290,400
1,046,800 1,357,300
1,851,200 2,160,$00
r~
1,794,400 1, 921,900
1,367,600 1,496,400
1,329,600 1,457,200
854,200 854,200
851,000 851,000
479,900 479,900
478,300 478,300
476,100 476,100
478,300 478,300
479,600 479,600
$ 18,663,000 $ 21,568,400
(75~
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OTHER REPORT SECTION
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Lars~nAlleri
1.1.3'
CPAs, Consultants & Advisors
www.larsonallen.com
REPORT ON MINNESOTA LEGAL COMPLIANCE
Honorable Mayor and
Members of the City Council
City of Monticello, Minnesota
We have audited the basic financial statements of the governmental activities, the business type
activities, each major fund, and the aggregate remaining fund information which collectively compose
the City's basic financial statements, of the City of Monticello, Minnesota, as of and for the year ended
December 31, 2006, and have issued our report thereon dated May 9, 2007.
We conducted our audit in accordance with auditing standards generally accepted in the United States
of America and the provisions of the Minnesota Legal Compliance Audit Guide for Local Government,
promulgated by the State Auditor pursuant to Minnesota Statute 6.65. Accordingly, the audit included
such tests of the accounting records and such other auditing procedures as we considered necessary
in the circumstances.
The Minnesota Legal Compliance Audit Guide for Loca! Government covers seven main categories of
compliance to be tested: contracting and bidding, deposits and investments, conflicts of interest, public
indebtedness, claims and disbursements, tax increment financing, and city and county miscellaneous
provisions. Our study included all of the listed categories.
The results of our tests indicate that for the items tested, the City of Monticello, Minnesota, complied
with the material terms and conditions of applicable legal provisions except for a disbursement that did
not appear to serve a public purpose and the retention of voided checks.
This report is intended solely for the information and use of the City of Monticello, Minnesota,
management and Office of the State Auditor and is not intended to be and should not be used by
anyone other than those specified parties.
~auo„Lt~.,v ~~' ~
LarsonAllen LLP
St. Cloud, Minnesota
May 9, 2007
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1't-`R ~a~~•-`i IG\ LarsonAlien LLN is a member of Nexia International, a worldwide nctwc>rk of indcltcndenr acantncing and consulting firms.
IN'I'L•RNA'I'iONA1.
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