2024 Popular Annual Financial ReportFY 2024 PAFR
Where the Money Comes From:
From property taxes to charges
for services, take a look at the
revenue streams that keep
Monticello moving forward.
Your Dollars at Work:
See how Monticello invests
in services like public safety,
parks, infrastructure, and
more for our community.
Shopping Local Does More:
Revenue from Hi-Way Liquors
and the DMV support key city
projects and services.
Popular AnnualFinancial Report
Financial Year 2024
FY 2024 PAFR
2 - CITY OF MONTICELLO
City Profile
The City of Monticello, organized as a municipality in
1856, has the Mississippi River as its north border. The
City is located approximately 45 miles northwest of
the Minneapolis/St. Paul metropolitan area along the
I-94 corridor in Wright County. The city benefits from
employment opportunities in the area and a relatively
low unemployment rate of 2.7%.
The City provides its residents and businesses with a
full range of municipal services consisting of contracted
law enforcement, fire protection, the construction and
maintenance of infrastructure, a community center for
recreation activities, park operations and maintenance,
and general administrative services. In addition, the
City operates six enterprises: water, sewer, stormwater,
fiber optic utilities, a municipal liquor store, and deputy
registrar (DMV).
In 2024, the City’s population was estimated at 14,840,
an increase of about 3% from the 2020 Census number
of 14,455. The City currently occupies 9.4 square miles
with the potential to expand to 20.8 square miles as
portions of Monticello Township may be annexed via the
Monticello Orderly Annexation Area agreement.
Located in Wright County, Minnesota
Mission Statement
The mission of the City of Monticello is to responsibly
manage our resources to provide quality services and
programs, creating a dynamic community by building
on our strengths and investing in our future.
2024 by the Numbers
14,840
Estimated Population
2.7%
Unemployment Rate
5,477
Households
$81,563 Median
Household Income
34.55
City Tax Rate
83.00 Direct &
Overlapping Tax Rate
4,260
School Enrollment
8.972
Registered Voters
2,300
MCC Memberships
63 Full-Time
Employees
4,762
Water Utility Customers 1,025 Streetlights
8.87
Square Miles 395 Fire Calls
81/47
Miles of Streets/Trails 26 Parks
Financial Report Message
Sarah Rathlisberger
Finance Director
The City of Monticello is pleased to present its tenth Popular Annual Financial Report (PAFR). The PAFR follows Generally
Accepted Accounting Principles (GAAP) and is a condensed version of the 2024 Annual Comprehensive Financial Report
(ACFR). It does not include information on all of the City’s funds and the discretely presented Economic Development
Authority (EDA) component unit. The full ACFR can be found on the City website at MonticelloMN.gov/164.
Thank you for your interest in your government.
Liz Lindrud
Assistant Finance Director
FY 2024 PAFR
CITY OF MONTICELLO - 3
Glossary of Accounting Terms
Assigned funds: Amounts set aside by the City for specific purposes
that are not restricted or committed.
Committed funds: Amounts that can only be used for a specific pur-
pose by resolution of the City Council.
Current and other assets: Resources with present service capacity that
the city controls such as cash or near cash items that can be used to
liquidate liabilities due within a year.
Capital assets: Nonfinancial assets that have an initial useful life of
more than one year and are used in providing services for the city and
its residents.
Deferred inflows of resources: Represent an acquisition of net assets
that applies to future periods (inflow of resources during the year).
Deferred outflows of resources: Represent a consumption of net
assets that applies to future periods (outflow of resources during the
year).
Fund: A grouping of accounts segregated for a specific purpose.
General fund: The main operating fund for the city.
Long-term liabilities: Obligations of the city including items such as
bonds, loans, compensated absences, pension liabilities and other city
obligations, typically due beyond the current reporting period.
Modified accrual basis of accounting: The method of accounting
where revenues are not recognized until they are both measurable and
available. Expenditures are recognized in the period when the liability
is liquidated rather than incurred.
Net investment in capital assets: Consists of capital assets, net
of accumulated depreciation, reduced by any outstanding debt
attributable to acquire capital assets, including accounts payable at
year end.
Nonspendable funds: Resources not in a spendable form, such as
prepaid items.
Other liabilities: Present obligations of the city that it has little or no
discretion to avoid.
Restricted funds: Funds to be used for an externally-imposed purpose.
Restricted net position: Consists of net position with limitations
imposed on its use through external restrictions imposed by creditors,
grantors, or other governments.
Statement of activities: Presents information showing how the city’s
net position changed during the reporting year.
Statement of net position: Presents information on the city’s assets
and deferred outflows of resources, less liabilities and deferred inflows
of resources, with the difference reported as net position. Over time,
increases or decreases in net position may serve as an indicator of
whether the financial position of the city is improving or deteriorating.
Tax capacity rate: A result of dividing the property tax levy by the
taxable value of properties in a jurisdiction.
Unassigned funds: The remaining balance in the General fund or
negative balance in any other fund.
Unrestricted net position: Includes all other net position that does not
meet the definition of “restricted” or “net investment in capital assets.
FY 2024 PAFR
4 - CITY OF MONTICELLO
City Structure
The City operates under the mayor-council form of government on a nonpartisan basis. The mayor is elected to serve a
two-year term. Councilmembers serve four-year staggered terms, with two councilmembers elected every two years.
Policymaking and legislative authority are vested in the city council. The council is responsible for passing policies,
ordinances, and resolutions. The council adopts the annual tax levy and budget. Council appointed boards, commissions
and committees usually include at least one councilmember. A council-appointed city administrator is responsible for
implementing policies and providing general operational oversight.
Organizational Chart
Citizens of Monticello
City Council
City Administrator Boards & Commissions
Administration Development
Services Finance Public Works Fire Parks, Arts &
Recreation
Left to right: Kip Christianson, Councilmember; Tracy Hinz, Councilmember; Lloyd Hilgart, Mayor; Charlotte Gabler, Councilmember;
Lee Martie, Councilmember.
Monticello City Council
Name & Title E-mail Term Expiry Date
Lloyd Hilgart, Mayor Lloyd.Hilgart@MonticelloMN.gov December 31, 2026
Lee Martie, Councilmember Lee.Martie@MonticelloMN.gov December 31, 2028
Kip Christianson, Councilmember Kip.Christianson@MonticelloMN.gov December 31, 2028
Charlotte Gabler, Councilmember Charlotte.Gabler@MonticelloMN.gov December 31, 2026
Tracy Hinz, Councilmember Tracy.Hinz@MonticelloMN.gov December 31, 2026
FY 2024 PAFR
CITY OF MONTICELLO - 5
City Finances
Property Taxes
The City Council adopts a tax levy for the General Fund, Monticello Community Center Fund, Debt Service Fund, and
Capital Projects Fund. The Economic Development Authority Levy is adopted by the Economic Development Authority
and the City Council. The levies for taxes payable in 2024 were $13,525,000 which is $1,073,000 (8.6%) higher than the
2023 levies of $12,452,000.
The city’s estimated market value of all properties within the city grew from $2.70 billion to $2.72 billion in 2024 (for
taxes payable in 2025). Residential properties saw a 1.8% decrease, commercial properties saw an 11.5% increase, and
apartments experienced a 9.0% increase in market value.
Governmental Revenues & Expenditures
Revenues
The most significant revenue source for governmental
activities is property taxes at 57%. Charges for Services
accounts for 21% of revenues, most of which is generated
by the Community Center. Capital grants & contributions
(11%) include special assessments and revenues from
other sources restricted to capital asset acquisition.
Expenses
Public works expenses are the most significant, followed
by recreation & culture, and public safety. Public works
includes engineering, streets, ice & snow removal, shop &
garage, and street lighting. Recreation & culture includes
parks, cemetery, senior center, and community center
expenditures. Public safety includes building inspections,
fire department and law enforcement.
FY 2024 PAFR
6 - CITY OF MONTICELLO
G eneral Fund
Revenues: Where the Money Comes From
For 2024, the City had budgeted for property taxes to be 70% of the
year’s revenue. However, property taxes made up 65% of the City’s
actual revenue in 2024. The City estimates the remaining non-tax
revenue sources, like license and permit fees, conservatively, since
these can vary year to year.
Total actual revenues totaled $13,708,880 compared to a budgeted
$12,757,000.
2024 Budgeted vs Actual Revenue
• Budgeted Revenue: $12,757,000
• Actual Revenue: $13,708,880
• Actual revenue was 107% of budgeted amount.
12% Charges for Services
65% PropertyTaxes
6% Intergovernmental
7% Licensesand Permits10% Other
Revenue Breakdown
FY 2024 PAFR
CITY OF MONTICELLO - 7
General Fund
Expenditures: How the Money is Spent
In 2024, the total expenditures were $12,563,262 which was
$187,738 under the budgeted $12,751,000. The largest variance
($391,326) came from public works due to the mild winter and lower
street maintenance and street lighting costs.
2024 Budgeted vs Actual Expenditures
• Budgeted Expenditures: $12,751,000
• Actual Expenditures: $12,563,262
• Actual expenditures were 99% of the budget.
31% Public Safety
24% General Government
17% Parks, Arts & Recreation
7% Sanitation21% Public
Works
Expenditure Breakdown
FY 2024 PAFR
8 - CITY OF MONTICELLO
Other Governmental Funds
Governmental Funds
The governmental funds operate on the modified
accrual basis of accounting and include various fund
types including:
• General fund - accounts for all financial resources
except those accounted for in another fund.
• Special revenue funds - account for revenues
restricted by law or administrative action for
specific purposes.
• Debt service funds - account for the activity
related to long-term debt principal, interest, and
related costs.
• Capital project funds - account for the acquisition
or construction of major governmental capital
facilities.
Community Center Special Revenue Fund
The Monticello Community Center (MCC) is a full-service facility with amenities including gym memberships, fitness
classes, climbing wall, aquatics, supervised indoor play, concessions, room rentals, and more. The MCC hosts various
events including a weekly summer Farmers Market, Movies in the Park, and Music on the Mississippi concert series.
Revenues are mostly comprised of charges to members and users. Some funding comes from a tax levy. Charges for
services increased $11,185 (0.9%), and expenditures increased $26,375 (1.2%) in 2024.
Monticello’s special revenue funds also include the Small Cities Development Program (SCDP) and Cemetery funds.
Discretely Presented Component Unit
A discretely presented component unit is a related, but distinct, entity which is reported in the city’s financial report
separately from the financial data of the primary government. The Economic Development Authority (EDA) Fund in
Monticello is one such component unit. One of the EDA’s primary focuses is improving Monticello’s original downtown.
Redevelopment on the Block 52 area began in late 2022 and continued through 2024. The EDA Fund also accounts for
the City’s tax increment financing (TIF) districts.
FY 2024 PAFR
CITY OF MONTICELLO - 9
Enterprise Funds
Enterprise Funds account for the City’s utilities (water, sewer, stormwater, fiber optics) as well as liquor and DMV
operations, which are funded like businesses, relying on fees and charges for revenue to cover expenses.
Utilities
Monticello’s water, wastewater and stormwater utilities serve approximately 4,800 residential, commercial and industrial
accounts. The City’s water storage capacity is 2.55 million gallons and is supplied by a system of 5 wells.
Water Fund
Water rates increased 8% in 2024 in anticipation of the need to fund a
future water treatment plant. In 2024 water revenues were $2,106,093,
increasing $8,642 from 2023. Total operating expenses (excluding
depreciation) were $965,374, increasing by $7,970 compared to 2023.
Sewer Fund
Sewer rates increased 3% in 2024. In 2024 sewer revenues increased
$148,371 to $3,162,560. Total operating expenses (excluding
depreciation) were $1,825,508, a decrease of $140,266 from 2023.
Stormwater Fund
The stormwater fee is based on 1 drainage unit per residence and
7 drainage units per impervious acre for non-residential properties.
This fee increased $0.25 per month to $4.75 in 2024. The stormwater
revenues increased by $42,863 to $665,526 in 2024. Total operating
expenses (excluding depreciation) were $202,576, a decrease of $1,125
from 2023.
FY 2024 PAFR
10 - CITY OF MONTICELLO
Enterprise Funds
Community Enterprise Funds
Hi-Way Liquors
Hi-Way Liquors operations are accounted
for in the Liquor enterprise fund. The liquor
store is conveniently located along the west
side of State Hwy 25 near the only Mississippi
River crossing within approximately 25 miles.
The excellent location and experienced
management team combined to achieve
the 18th highest gross sales out of the 176
municipally run liquor stores in Minnesota in
2023. (2024 report not yet available).
The store’s overall gross profit margin is
roughly 26%. Profits generated from the liquor
store support various city projects. Liquor and
related product sales were $6,481,607. Sales
have remained steady, but are trending down
as liquor consumption trends are changing.
The net position decreased $383,054 in 2024.
$1,000,000 in profits from the liquor store
were used in 2024 to help fund the Downtown
Roadway and Pedestrian Improvement Project.
Stop in for friendly service and a great
selection of beer, wine, liquor, and more!
Deputy Registrar (Department of Motor
Vehicles)
Monticello’s Department of Motor Vehicles
(DMV) operations are reflected in the Deputy
Registrar enterprise fund.
In 2024, the DMV reported a net position
increase of $421,056. While the number of
transactions processed decreased by 1.8%, the
revenue generated per transaction increased
by 76% from 2023. Of the total profits,
$100,000 was allocated to support operations
at the Monticello Community Center. In 2023,
$1,750,000 in net profits were used to fund
the Downtown Roadway and Pedestrian
Improvement Project.
The DMV provides the following services:
• $20 fast track title transfers (title received
within 3 business days).
• Duplicate titles printed in-house same day.
• Duplicate driver’s license (change of
address or lost).
• All of your DNR needs including fishing &
hunting licenses and boat transfers.
• Notary services and more!
FY 2024 PAFR
CITY OF MONTICELLO - 11
What We Own
2024 Major Projects & Purchases
Capital Assets
The total for 2024 capital assets is $125,470,811. Below is
a list of all major projects and purchases that occurred in
2024.
• School Boulevard Intersection Improvements
• Elm Street Improvements
• Flashing Yellow Arrow Traffic Light Upgrades
• Stormwater Pond Relocation
• SCADA System Improvements
• Fiber Installation for Haven Ridge Development
• Two plow trucks
• 2 trucks for streets, 1 truck for parks, and 1 vehicle for
building inspections
• Bobcat asphalt planer
• Dual grapple bucket
• Cimline Tack Trailer w/boom
• Romp and stomp indoor playground for MCC
• New fire alarm system for MCC
Long-Term Financial Planning
The City has developed a Capital Improvement Plan
(CIP), which is a five-year forecast of the City’s facility,
equipment, and infrastructure needs. Items in the
first year of the CIP are incorporated into the annual
budget. Items in the later years are less certain, but are
identified for long-term planning. A long term financial
planning model was created in 2022, which is updated
annually.
Both the City’s debt load and annual debt service
property tax levy are evaluated for large projects
requiring debt issuance. Current year revenues, grants
and one-time use of reserves provide pay-as-you-go
financing for smaller projects.
Projects in Process:
• Ditch 33 Improvements
• Water Treatment Plant
Construction
• CSAH 39 West Utility
Expansion
• Bertram Chain of Lakes
Phase 2 Improvements
• 7th Street Retaining Wall &
Sidewalk Project
• CSAH 39 Trail
• School Boulevard
Intersection Improvements
FY 2024 PAFR
12 - CITY OF MONTICELLO
The City’s debt includes general obligation (G.O.) bonds issued to fund major capital projects such as infrastructure
improvements, as well as G.O. revenue bonds and a Public Facilities Authority (PFA) G.O. Sewer Revenue Note used to
finance upgrades to the wastewater treatment plant.
Except when aligning the timing of necessary
public investments with private development,
the City plans to issue debt only for large, non-
recurring projects, such as construction of a new
City facility. Projects such as street overlays or
equipment purchases are considered recurring in
nature and are funded through current resources
like grants or the capital tax levy.
The remaining portion of the debt reflects the
City’s liabilities related to employee benefits.
As of the end of 2024, the City’s total outstanding
long-term liabilities amounted to $19,468,646.
What We Owe
Debt Service & Capital Projects Fund
The City has one combined debt service fund made up of
six sub-funds for the various governmental debt issuances
outstanding. The fund balance is restricted for repayment
of debt.
The Capital Projects Fund is the only major capital project
fund of the City. This fund accounts for the majority of
governmental buildings and infrastructure projects, some
of which are detailed on page 11. The nonmajor capital
projects funds include street lighting improvement, park &
pathway improvement, and park dedication.
Monticello Bond Rating
In 2023, Moody’s upgraded the City’s bond rating to Aa3. An Aa3 is a high grade. A high bond rating is important because
it results in lower interest costs when issuing debt.
The amount of bonds outstanding at year-end 2024 was $15,340,000 compared to the 2023 year-end amount of
$17,815,000. The City did not issue any debt in 2024.
The City of Monticello
received a high bond rating
of Aa3 by Moody’s in 2023.
Aa3Bond Rating
FY 2024 PAFR
CITY OF MONTICELLO - 13
Largest Taxpayer, Employers, and Customers
As taxpayers go, none is larger in Monticello than Xcel
Energy (Xcel), also known as Northern States Power (NSP).
The company operates a nuclear power plant located inside
Monticello’s western boundary. The company has made two
uprate improvements in the last fifteen years, absorbing a
larger share of the City’s property tax levy. Xcel’s share of the taxes paid increased from 40% to 62% and back down to
39% in that time. Consequently, the City has one of the lowest tax capacity rates in Wright County.
Taxes: Property and Sales
Property Taxes
Who gets your property tax dollar?
Your tax dollar is divided between three governmental
authorities. Monticello collects 42 cents for every tax
dollar for the City services. The remaining portions are
divided among Wright County, Independent School District
#882, and the EDA.
$0.41
Wright County
$0.42
City of Monticello
$0.01
EDA
$0.16
School District
The Monticello Independent School District (ISD 882) surpassed Xcel as Monticello’s largest employer, with 684
employees. Neither Xcel nor the school district are Monticello’s largest utility customer, however. Cargill Kitchen
Solutions generates $494,978 or 15.7% of the sewer utility operating revenue and $115,799 or 5.5% of the water utility
revenue. Cargill operates a plant that produces further-processed egg products in the breakfast category for restaurants
and food manufacturers.
Local Option Sales Tax
In November 2024, residents voted to pass a 0.5% Local
Options Sales Tax to fund improvements at the Bertram
Chain of Lakes Regional Athletic Park. The tax applies to
the same items and services as the general state sales
tax. Items such as groceries, prescription and over-the-
counter medications, baby products and clothing are
exempt from the sales tax.
The local sales tax took effect April 1, 2025. The City
continues to seek additional funding, such as grants, to
maximize the sales tax revenue.
FY 2024 PAFR
14 - CITY OF MONTICELLO
Financial Awards
The Government Finance Officers Association (GFOA), with more than 20,000 professionals, is dedicated to enhancing
and promoting the professional management of governments for the public benefit. Since 1906, the GFOA has been
accomplishing this mission by identifying and developing the highest quality financial policies and practices and
promoting them to the public through education, training, and leadership.
The GFOA has established several highly regarded professional recognition programs to encourage state and local
governments of all types and sizes to improve the quality of their financial management and to recognize their
achievement.
Each award is valid for one year. The City of Monticello has received the following awards:
Distinguished Budget
Presentation Award
2009—2025
Annual Comprehensive
Financial Report
2009—2023
Popular Annual
Financial Report
2015—2023