2025 Monticello Annual Comprehensive Financial ReportAnnual Comprehensive Financial Report
Fo r t he Yea r Ended De c embe r 31 , 2 0 2 5
City of Monticello, Minnesota
505 Walnut Street • 763-295-2711 • monticellomn.gov
City of Monticello
Wright County, Minnesota
Annual Comprehensive
Financial Report
FOR THE YEAR ENDED DECEMBER 31, 2025
Prepared by
THE FINANCE DEPARTMENT
Sarah Rathlisberger, Finance Director ● Liz Lindrud, Assistant Finance Director
Julie Cheney, Finance Assistant ● Cheri Butler, Payroll Specialist
Debbie Gulbrandson, Accounts Payable Clerk ● Jen Stodola, Utility Billing Specialist
CITY OF MONTICELLO
Financial Statements
Table of Contents
December 31, 2025
INTRODUCTORY SECTION Page
Letter of Transmittal 1
GFOA Certificate of Achievement for Excellence in Financial Reporting 6
Organization Chart 7
Directory of Officials 8
FINANCIAL SECTION
Independent Auditor's Report 9
Management's Discussion and Analysis 13
Basic Financial Statements
Government-wide Financial Statements
Statement of Net Position 21
Statement of Activities 22
Fund Financial Statements
Balance Sheet - Governmental Funds 24
Reconciliation of the Governmental Funds Balance Sheet to the Statement of Net Position 26
Statement of Revenues, Expenditures and Changes in Fund Balance - Governmental Funds 28
Reconciliation of the Statement of Revenues, Expenditures and Changes in Fund Balances of
Governmental Funds to the Statement of Activities 30
Statement of Net Position - Proprietary Funds 32
Statement of Revenues, Expenses and Changes in Net Position - Proprietary Funds 34
Statement of Cash Flows - Proprietary Funds 36
Notes to the Financial Statements 38
Required Supplementary Information
Schedule of Employer's Share and Non-Employer Proportionate Share of Net Pension Liability
- Public Employees Retirement Association 67
Schedule of Employer's Pension Contributions - Public Employees Retirement Association 67
Schedule of Changes in the Fire Relief Association's Net Pension Liability (Asset) and Related Ratios 68
Schedule of Employer's Pension Contributions - Monticello Fire Department Relief Association 68
Schedule of Changes in the City's Total OPEB Liability and Related Ratios 69
Schedule of Revenues, Expenditures and Changes in Fund Balance - Budget and Actual - General Fund 70
Schedule of Revenues, Expenditures and Changes in Fund Balance - Budget and Actual - Community
Center Fund 71
Notes to the Required Supplementary Information 72
Combining and Individual Fund Financial Statements and Schedules
Nonmajor Governmental Funds
Combining Balance Sheet 77
Combining Statement of Revenues, Expenditures and Changes in Fund Balance 78
Internal Service Funds
Combining Statement of Net Position 79
Combining Statement of Revenues, Expenses and Changes in Net Position 80
Combining Statement of Cash Flows 81
Other Supplementary Schedules
Schedule of Revenues, Expenditures and Changes in Fund Balance - Budget and Actual - Small Cities
Development Program 83
Schedule of Revenues, Expenditures and Changes in Fund Balance - Budget and Actual - Cemetery Fund 84
Schedule of Assets, Liabilities, Deferred Inflows of Resources and Fund Balances - Debt Service Activities 85
Schedule of Revenues, Expenditures and Changes in Fund Balance - Debt Service Activities 86
Schedule of Assets, Liabilities, Deferred Inflows of Resources and Fund Balances - Discretely Presented
Component Unit - Economic Development Authority 88
Schedule of Revenues, Expenditures and Changes in Fund Balance - Discretely Presented Component
Unit - Economic Development Authority 90
(continued)
I
CITY OF MONTICELLO
Financial Statements
Table of Contents
December 31, 2025 (continued)
STATISTICAL SECTION
Financial trends
Net Position by Component - Last Ten Fiscal Years 93
Changes in Net Position - Last Ten Fiscal years 94
General Governmental Tax Revenues by Source - Last Ten Fiscal Years 96
Fund Balances of Governmental Funds - Last Ten Fiscal Years 97
Changes in Fund Balances of Governmental Funds - Last Ten Fiscal Years 98
Governmental Funds Tax Revenues by Source - Last Ten Fiscal Years 99
Revenue capacity
Tax Capacity Value and Estimated Market Value of Taxable Property - Last Ten Fiscal Years 100
Property Tax Rates - All Direct and Overlapping Governments - Last Ten Fiscal Years 101
Property Tax Levies and Collections - Last Ten Fiscal Years 102
Principal Property Taxpayers - Current Year and Nine Years Ago 103
New Construction and Bank Deposits - Last Ten Fiscal Years 104
Water Sold by Customer Type - Last Ten Fiscal Years 105
Water and Sewer Utility Rates - Last Ten Fiscal Years 106
Debt capacity
Ratios of Outstanding Debt by Type - Last Ten Fiscal Years 107
Ratios of Net General Obligation Bonded Debt Outstanding - Last Ten Fiscal Years 108
Legal Debt Margin Information - Last Ten Fiscal Years 109
Computation of Direct and Overlapping Debt - As of December 31, 2025 110
Schedule of General Obligation Revenue Bond Coverage - Last Ten Fiscal Years 111
Economic and demographic information
Demographic and Economic Statistics - Last Ten Fiscal Years 112
Principal Employers - Current Year and Nine Years Ago 113
Operating information
City Government Employees by Function/Program - Last Ten Fiscal Years 114
Operating Indicators by Function - Last Ten Fiscal Years 115
Capital Assets Statistics by Function - Last Ten Fiscal Years 117
Schedule of Cash Flows Adjusted for Additional City Funding of Fiber Optics Fund -Last Ten Fiscal Years 118
II
INTRODUCTORY SECTION
May 19, 2026
To the Honorable Mayor, Members of the City Council, and the Residents of the City of Monticello:
The City of Monticello, Minnesota (the city) is pleased to present the Annual Comprehensive Financial
Report (ACFR) for the fiscal year ended December 31, 2025. State law requires local governments with a
population over 2,500 or which meet certain revenue thresholds to submit audited financial statements
within six months of the local government’s fiscal year end to the Office of the State Auditor (OSA).
Additionally, the ACFR is required by bond rating agencies before they will rate the city’s bonds. The city
council and residents can use the report to gain a better understanding of the financial condition of the city.
MANAGEMENT RESPONSIBILITY AND INTERNAL CONTROLS
The 2025 ACFR was prepared by city staff in accordance with Generally Accepted Accounting Principles
(GAAP) as established by the Government Accounting Standards Board (GASB). Management assumes
full responsibility for the completeness and reliability of all information presented within this report. To
provide a reasonable basis for making these representations, management of the City has established
internal controls designed to protect the City’s assets from loss, theft, or misuse and to provide sufficient
information for the preparation of these financial statements in conformity with accounting principles
generally accepted in the United States of America. Because the cost of internal controls should not
outweigh the benefits, the City’s internal controls have been designed to provide reasonable, rather than
absolute, assurance that the financial statements will be free from material misstatements. As management,
we assert that to the best of our knowledge and belief this report is complete and reliable in all material
respects.
INDEPENDENT AUDIT
The city’s ACFR was audited by Abdo, a firm of licensed certified public accountants, who issued an
unmodified (clean) opinion that the city’s financial statements for the fiscal year ended December 31, 2025
are fairly presented in accordance with GAAP and Government Auditing Standards issued by the
Comptroller General of the United States.
The goal of the independent audit was to provide reasonable assurance that the financial statements of the
City for the year ended December 31, 2025, are free of material misstatements. The independent audit
involved examining, on a test basis, evidence supporting the amounts and disclosures in the financial
statements, assessing the accounting principles used and significant estimates made by management, and
evaluating the overall financial statement presentation. The independent auditor’s report is presented as
the first component of the financial section of this report.
MANAGEMENT’S DISCUSSION AND ANALYSIS
Immediately following the independent auditor’s report is the Management’s Discussion and Analysis
(MD&A), which provides a narrative overview and analysis of the city’s financial activities to supplement the
basic financial statements and footnotes. This letter of transmittal is designed to complement the MD&A
and should be read in conjunction with it.
PROFILE OF THE CITY
The City of Monticello is situated in a prime location on Interstate 94 between Minneapolis/St. Paul and St.
Cloud. The city has experienced steady, sustainable growth, nearly doubling in size since 2000. Growth
has been strong in various sectors including residential, commercial, office, and retail. The city is a
freestanding urban fringe community encompassing approximately 6,000 acres with an estimated
population of 15,464. The city is home to one of Minnesota’s two nuclear power plants, both owned by Xcel
Energy, Inc. (NYSE: XEL), which is the city’s largest property taxpayer and the second largest employer.
1
In January 2025, Xcel’s request to extend the licensure of the Monticello plant to 2050 was approved at the
Federal level; however, the State has only approved the storage of spent fuel through 2040, so Xcel is in
the process of updating this deadline. Additionally, Monticello’s business friendly environment provides a
home for Cargill Kitchen Solutions. The privately-owned, agri-giant is the city’s largest customer of water
and sewer utility services.
The city was founded by second-generation Americans who migrated west in the mid-1800s. Early settlers
found the gently sloping banks and shallow levels of the Mississippi River made a logical place for a river
crossing. Incorporated in 1856, the city grew quickly during the early settlement years and then leveled off
to a population of about 1,300. It was this original settlement that became the core city and continues today
as downtown Monticello.
The city is categorized as a 501(a) entity by IRS Code and operates under the “Optional Plan A” form of
government as defined in Minnesota Statutes. Under this plan, the government of the city is directed by a
city council composed of an elected mayor and four elected city council members. The city council exercises
legislative authority and determines all matters of policy. The city council appoints personnel responsible
for the proper administration of all affairs relating to the city. At-large Council members serve four-year
terms, with two members elected every two years. The mayor is elected for a two-year term.
The city provides a full range of services to the community: the construction and maintenance of streets
and other infrastructure; snow removal; park and cemetery maintenance; recreational and cultural activities;
water, sewer, stormwater, and residential garbage and recycling systems; community development,
building inspection, planning, police, fire, liquor store, and deputy registrar operations; a city-run fiber optic
system and community center; and general government operations, including administration,
finance/accounting, human resources, information technology, and public facility maintenance.
Classified as a discretely presented component unit, the Monticello Economic Development Authority
(EDA) is a separate legal entity organized pursuant to Minnesota Statutes, Section 469 which was created
to carry out economic and industrial development and redevelopment within the city in accordance with
policies established by the City Council. The EDA also serves as the city’s Housing and Redevelopment
Authority (HRA). Two Council members serve on the seven-member board with the remaining five members
appointed by the City Council. Management of the city has complete operational responsibility of the EDA’s
activities, and the City Council reviews and approves the tax levy and all expenditures for the EDA.
DEVELOPMENT AND LOCAL ECONOMY
Monticello is a destination community located in the fastest growing county in Minnesota. The location on
Interstate 94 is a catalyst for interest from developers in building in the city. Several residential
neighborhoods and multi-family dwellings are under construction with more on the horizon. The nuclear
power plant provides the city with a relatively stable tax and employment base, although year-to-year
valuations of the nuclear plant cause tax shifts between property tax types. Due to the nuclear plant and
local development, the city does not rely on the state as a major funding source (LGA), so the city’s finances
are somewhat insulated from the state’s budget impacts. On the other hand, volatility in the valuation of the
nuclear plant greatly impacts Monticello’s tax base.
The City’s 2025 estimated market value and net tax capacity for taxes payable in 2026 is $2,922,471,600
and $40,128,532, respectively. The tax base is allocated 38.6% to residential, 60.3% to commercial and
industrial, and the remaining 1.1% to agricultural and personal property. The city’s tax rate payable in 2025
was 37.701%, and applying other overlapping jurisdictions, the total tax rate for residents in Monticello was
88.228%. The economy and housing market have also affected city revenues for building permits. In 2025,
the city issued 1,839 permits with a total valuation of $52,164,306.
To assist external stakeholders, the city is continuously exploring various ways to diversify its revenue
sources. As a result, a voter-approved half-percent local sales tax for the Bertram Chain of Lakes Regional
2
Athletic Park began April 1, 2025. This funding will support additional phases of improvements at the park
including a maintenance facility, pickleball courts, and buildout of numerous multi-purpose fields.
The City Council, as recommended by the Economic Development Authority, has approved several private
agreements which aid specific development or redevelopment projects which would not have occurred but
for financial assistance. The benefit to the City of these agreements, some of which qualify as tax
abatements, is elimination of blighted and underutilized properties, affordable housing, job creation, and
increased tax base in future years.
STRATEGIC GOALS
Monticello’s City Council holds an annual
strategic planning workshop to review
progress made on existing initiatives and to
identify any new priorities. The discussion
allows for alignment between members of
Council and between Council and staff.
Management summarizes the information and
translates it into actionable projects and tasks.
Major projects and tasks from this process are
discussed in greater detail under Major
Initiatives later in this transmittal letter.
BUDGETING AND FINANCIAL PLANNING
Financial planning and control for the City of Monticello is based on the annual budget, multi-year Capital
Improvement Plan (CIP), and long-term financial plan. Under Minnesota Statutes, a preliminary property
tax levy must be adopted annually by September 30 for collection in the subsequent year. The preliminary
levy, approved after a series of public budget workshops, establishes a maximum levy, which can be
lowered for a final levy but not raised. While not formally adopted, the preliminary levy is informed by a draft
budget to ensure sufficiency and appropriateness. Additional adjustments are made to the draft budget,
and Council reviews the recommended rates and charges for utility funds and other operations to update
the fee schedule ordinance. After a public hearing called the Truth-In-Taxation hearing is held in December,
a final property tax levy and final budget are adopted.
The budget is prepared by fund (e.g., general), function (e.g., public works), and department (e.g., streets).
Department heads are allowed to make administrative budget amendments (excluding personal service
and capital outlay) throughout the year if the total department budget does not change and the amendment
is approved by the City Administrator and Finance Director if above $10,000. Spending in excess of the
total budgeted expenditures in any fund requires City Council approval.
The legal level of budgetary control is the fund level in all funds. A budget is legally adopted for the General
Fund and major special revenue fund (Community Center Fund) and administratively appropriated for all
other city funds. As demonstrated by the statements and schedules included in the financial section of this
report, the city continues to meet its responsibility for sound financial management.
Monticello’s CIP, as part of the final budget, includes all proposed capital improvements and acquisitions
for the next 10 years with the upcoming year fully funded in the budget. Years 2-4 of the CIP include projects
in the planning stage with more refined cost estimates but do not necessarily have finite funding sources.
Years 5-10 are for future planning and are more likely to be adjusted by both amount and timing. The CIP
includes projects for which the City may fund by issuing debt, receiving grant funds, utilizing current
revenues, or using beginning cash reserves. Items included in the CIP are reviewed and reprioritized each
year to balance needs and leverage the assets of the city to fulfill top priorities.
3
The city consulted with Northland Public Finance in 2022 to create a long-term financial plan model to assist
in future planning. The model allows for annual updates to reflect changes in assumptions and information
gained throughout the year. The long-term financial plan combines estimates for future development, tax
base growth, capital needs and subsequent operational impact, potential additional staff, future debt
issuance, and tax levy and tax rate projections. A consolidated plan allows for adjustment in the short-term
helps avoid future financial strain and allows for incremental changes each year to successfully achieve the
city’s strategic goals.
Grants are sought at the federal, state, and local levels to achieve the city’s goals for the community while
lessening the financial impact on the community. Grants awarded recently have been for street and trail
improvements identified in the Safe Routes to Schools plan, completion of a Safe Streets For All (SS4A)
action plan, roundabout construction at two intersections on School Boulevard, addition of flashing yellow
arrows at certain stoplights, extension of utilities, water treatment plant construction, improvements to a
ditch system on the East side of the city, response to Emerald Ash Borer (EAB), and library building and
parking lot upgrades, among others.
Debt issuance is a financing tool not used by the city since 2020; however, a number of upcoming projects
will require the use of bonds to be achievable. The city not only considers the legal debt limit when
considering debt issuance, but also the practical ability and appetite of the community to pay back the debt.
The city’s bond rating was increased in October of 2023 to Aa3 by Moody’s.
MAJOR INITIATIVES
The city has several major ongoing initiatives, known as the Big 6.
First, the City Council prioritized the construction of a new Water Treatment Plant. Not to be confused with
the existing Wastewater Treatment Plant, the Water Treatment Plant will serve as the central location for
the treatment of the city’s water supply. During a routine test of the city’s water supply, higher than
recommended levels of manganese were discovered, and the city will use the new treatment plant to treat
the water supply accordingly. The State of Minnesota allocated $11 million toward this project, which must
be completed by 2028. The remainder of the project will be financed with a Public Facilities Authority (PFA)
low-interest loan through the State of Minnesota, which will be paid back through user charges.
Second, the construction of a new Public Works Facility is a priority for the City Council. The current location
was built in the 1970s and would need significant maintenance to continue supporting operations. Land
was purchased in 2021 for the new site, an architect was hired in 2022, and a construction manager was
hired in 2023. Planning was paused as the city sought external financial sources. External funding was not
obtained, and the city plans to issue bonds which will be paid back with property taxes to facilitate
construction.
A third ongoing initiative is the operation of, and improvements to, the Bertram Chain of Lakes properties,
jointly owned with Wright County. The 1,258-acre site includes four pristine lakes, woodlands, and open
space, which is altogether a regional park. Wright County and the city obtained matching grants from the
state to purchase much of the acreage in the park. Construction of phases I and II of park improvements
were completed in 2021 and 2023. Phase III including a maintenance facility and pickleball courts are
planned for 2026. A $15 million voter-approved sales tax for up to 20 years began in 2025. The Council is
considering pledging much of the funding for repayment of sales tax revenue bonds to allow for completion
of a larger number of improvements sooner rather than smaller projects as the tax is collected.
Fourth, Fallon Avenue is a central transportation artery in the city which requires significant updates to
facility continued use and future growth. It connects the city north-to-south by way of an overpass above
Interstate 94 and extends to the southern border of city limits at a right-angle curve into 85th Street.
Improvements include additional utilities infrastructure, street urbanization, pathway addition, and
intersection control by way of a roundabout at the southern end. A private residential development planned
4
near the southern end will assist in a portion of the improvements needed. Other proposed development to
the south of current city limits may accelerate the improvements.
The fifth ongoing initiative is the revitalization of Monticello’s historic downtown. The downtown area is the
oldest part of the city, which requires continuous redesign and investment. The city’s goal to reestablish the
downtown area as a vibrant shopping and resident destination is driven by the Embracing Downtown
Monticello initiative and 2017 Downtown Small Area Plan (SAP). Private redevelopment of a central block
(Block 52) occurred in 2022-2024 which was complemented by the city’s public improvements near the
block for improvement of traffic and pedestrian safety and greater connectivity. Focus has shifted to Block
34 (diagonally opposite Block 52) but is in the preliminary stages while the SAP is updated. The city’s
Monti:2040 Comprehensive Plan, completed in 2020, includes downtown revitalization as a priority focus
through 2040.
Finally, the City Council identified the Pointes at Cedar development area, a 100-acre site in the middle of
the city, as a prime area for growth, which will aid in lessening the impacts of the eventual Xcel plant
decommissioning. This project is paused as funding sources are examined.
Additional initiatives which are less visible but may create the ability for future capital projects are also
ongoing. These include development of a data center planned unit development (DCPUD) ordinance,
development interest (particularly in the area northwest of city limits within the Orderly Annexation Area of
Monticello Township), parks planning, pavement management program administration, and utilities
planning, among others.
AWARDS AND ACKNOWLEDGMENTS
The Government Finance Officers Association of the United States and Canada (GFOA) awarded a
Certificate of Achievement for Excellence in Financial Reporting to the city for its ACFR for the fiscal year
ended December 31, 2024. This was the fifteenth consecutive year that the city has received this
prestigious award. To be awarded a Certificate of Achievement, the city had to publish an easily readable
and efficiently organized ACFR. This report must satisfy both accounting principles generally accepted in
the United States of America and applicable legal requirements.
A Certificate of Achievement is valid for a period of one year only. The city believes our current ACFR
continues to meet the Certificate of Achievement Program’s requirements, and the city is submitting it to
the GFOA to determine its eligibility for the award.
The 2025 ACFR was prepared in a timely and cost-effective manner and would not have been possible
without the efficient and dedicated service of the entire finance department and city staff. City management
expresses our appreciation to all parties who assisted and contributed to the preparation of this report.
Credit also must be given to the mayor and city council for their unwavering support for maintaining the
highest standards of professionalism in the management of the city’s finances.
Respectfully submitted,
Sarah Rathlisberger
Finance Director
5
The Government Finance Officers Association of the United States and Canada (GFOA) awarded a
Certificate for Excellence in Financial Reporting to the City of Monticello, Minnesota for its Annual
Comprehensive Financial Report for the fiscal year ended December 31, 2024. The Certificate of
Achievement is a prestigious national award recognizing conformance with the highest standards for
preparation of state and local government reports.
To be awarded a Certificate of Achievement, a governmental unit must publish an easily readable and
efficiently organized Annual Comprehensive Financial Report, whose contents conform to program
standards. Such reports must satisfy both generally accepted accounting principles and applicable legal
requirements.
A Certificate of Achievement is valid for a period of one year only. We believe our current report continues
to conform to Certificate of Achievement program requirements, and we are submitting it to the GFOA.
Government Finance Officers Association
Certificate of
Achievement
for Excellence
in Financial
Reporting
Presented to
City of Monticello
Minnesota
For its Annual Comprehensive
Financial Report
For the Fiscal Year Ended
December 31, 2024
Executive Director
6
CITY OF MONTICELLO
Organization Chart
Residents
City Council
City
Administrator
Human
Resources Communications Finance
Deputy Registrar
Liquor
Operations
Information
Technology
Development
Services
Planning &
Zoning
Economic
Development
Building Safety
& Code
Enforcement
Public Works
Streets
Water & Sewer
Utilities
Engineering
Facilities
Maintenance
Parks, Arts &
Recreation
Community
Center
Parks
MontiArts
City Clerk
Elections
Reception
Animal Control
Fire Department Contracted
Services
City Attorney
Law
Enforcement
County
Assessor
FiberNet
Boards &
Commissions
7
MAYOR & CITY COUNCIL
Position Name Term Expires
Mayor ....................................................................... Lloyd Hilgart 12/31/2026
Council ............................................................... Charlotte Gabler 12/31/2026
Council ........................................................................ Tracy Hinz 12/31/2026
Council ............................................................... Kip Christianson 12/31/2028
Council ........................................................................ Lee Martie 12/31/2028
CITY STAFF
City Administrator ......................................................................... Rachel Leonard
Public Works Director/City Engineer .................................................. Matt Leonard
Finance Director ..................................................................... Sarah Rathlisberger
Community Development Director ............................................. Angela Schumann
Parks, Arts & Recreation Director ....................................................... Tom Pawelk
City Clerk .................................................................................. Jennifer Schreiber
Finance Manager ................................................................................ Liz Lindrud
Human Resource Manager ................................................................ Tracy Ergen
Communications Specialist ....................................................... Stephanie Trottier
Street Superintendent ...................................................................... Mike Haaland
Utilities Superintendent ......................................................................... Mat Stang
Facilities Maintenance Manager ..................................................... Dan Halverson
Parks Superintendent .................................................................. Josh Berthiaume
Community Center Operations Manager .............................................. Sara Cahill
Community Center Membership Coordinator ................................. Tricia Handorff
Deputy Registrar Manager .......................................................... Carolyn Granger
Liquor Store Manager ................................................................. Randall Johnsen
Information Technology Technician .................................................... Trevor Mack
Economic Development Manager ........................................................ Jim Thares
Chief Building Official ...................................................................... Bob Ferguson
Fire Chief ........................................................................................... Jake Olinger
PROFESSIONAL SERVICES
Law Enforcement .................................................... Wright County Sheriff’s Office
City Attorney .................................................................... Campbell Knutson, P.A.
City Planning Consultant ................................................ Grittman Consulting, LLC
Financial Advisor ............................................................. Northland Securities, Inc
Fibernet Management Services .................................................................... Arvig
8
FINANCIAL SECTION
INDEPENDENT AUDITOR’S REPORT
Honorable Mayor and City Council
City of Monticello, Minnesota
Opinions
We have audited the accompanying financial statements of the governmental activities, the business -type activities, the
discretely presented component unit, each major fund and the aggregate remaining fund information of the City of
Monticello, Minnesota (the City), as of and for the year ended December 31, 2025, and the related notes to the financial
statements, which collectively comprise the City’s basic financial statements as listed in the table of contents.
In our opinion, the financial statements referred to above present fairly, in all material respects, the respective financial
position of the governmental activities, the business-type activities, the discretely presented component unit, each major
fund and the aggregate remaining fund information of the City as of December 31, 2025, and the respective changes in
financial position and, where applicable, cash flows thereof for the year then ended in accordance with accounting
principles generally accepted in the United States of America.
Basis for Opinions
We conducted our audit in accordance with auditing standards generally accepted in the United States of America and the
standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of
the United States. Our responsibilities under those standards are further described in the Auditor’s Responsibilities for the
Audit of the Financial Statements section of our report. We are required to be independent of the City to meet our other
ethical responsibilities, in accordance with the relevant ethical requirements relating to our audit. We believe that the audit
evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinions.
Responsibilities of Management for the Financial Statements
Management is responsible for the preparation and fair presentation of these financial statements in accordance with
accounting principles generally accepted in the United States of America; this includes the design, implementation, and
maintenance of internal control relevant to the preparation and fair presentation of financial statements that are free from
material misstatement, whether due to fraud or error.
In preparing the financial statements, management is required to evaluate whether there are conditions or events,
considered in the aggregate, that raise substantial doubt about the City’s ability to continue as a going concern for twelve
months beyond the financial statement date, including any currently known information that may raise substantial doubt
shortly thereafter.
Auditor’s Responsibilities for the Audit of the Financial Statements
Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from
material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinions.
Reasonable assurance is a high level of assurance but is not absolute assurance and therefore is not a guarantee that an
audit conducted in accordance with generally accepted auditing standards and Government Auditing Standards will always
detect a material misstatement when it exists. The risk of not detecting a material misstatement resulting from fraud is
higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentation s,
or the override of internal control. Misstatements are considered material if there is a substantial likelihood that,
individually or in the aggregate, they would influence the judgment made by a reasonable user based on the financial
statements.
9
In performing an audit in accordance with generally accepted auditing standards and Government Auditing Standards, we:
•Exercise professional judgment and maintain professional skepticism throughout the audit.
•Identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error,
and design and perform audit procedures responsive to those risks. Such procedures include examining, on a test
basis, evidence regarding the amounts and disclosures in the financial statements.
•Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are
appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the
City’s internal control. Accordingly, no such opinion is expressed.
•Evaluate the appropriateness of accounting policies used and the reasonableness of significant accounting
estimates made by management, as well as evaluate the overall presentation of the financial statements.
•Conclude whether, in our judgment, there are conditions or events, considered in the aggregate, that raise
substantial doubt about the City’s ability to continue as a going concern for a reasonable period of time.
We are required to communicate with those charged with governance regarding, among other matters, the planned scope
and timing of the audit, significant audit findings, and certain internal control-related matters that we identified during the
audit.
Required Supplementary Information
Accounting principles generally accepted in the United States of America require that the Management’s Discussion and
Analysis starting on page 11 and the required supplementary information (RSI), as listed in the table of contents, starting
on page 59 be presented to supplement the basic financial statements. Such information is the responsibility of
management and, although not a part of the basic financial statements, is required by the Governmental Accounting
Standards Board who considers it to be an essential part of financial reporting for placing the basic financial statements
in an appropriate operational, economic, or historical context. We have applied certain limited procedures to the RSI in
accordance with auditing standards generally accepted in the United States of America, which consisted of inquir ies of
management about the methods of preparing the information and comparing the information for consistency with
management’s responses to our inquiries, the basic financial statements, and other knowledge we obtained during our
audit of the basic financial statements. We do not express an opinion or provide any assurance on the information
because the limited procedures do not provide us with sufficient evidence to express an opinion or provide any
assurance.
Supplementary Information
Our audit was conducted for the purpose of forming opinions on the financial statements that collectively comprise the
City’s basic financial statements. The combining and individual fund financial statements and schedules are presented
for purposes of additional analysis and are not a required part of the basic financial statements. Such information is the
responsibility of management and was derived from and relates directly to the underlying accounting and other records
used to prepare the basic financial statements. The information has been subjected to the auditing procedures applied in
the audit of the basic financial statements and certain additional procedures, including comparing and reconciling such
information directly to the underlying accounting and other records used to prepare the basic financial statements or to
the basic financial statements themselves, and other additional procedures in accordance with auditing standards
generally accepted in the United States of America. In our opinion, combining and individual fund financial statements
and schedules are fairly stated, in all material respects, in relation to the basic financial statements as a whole.
1
Other Information
Management is responsible for the other information included in the annual report. The other information comprises the
introductory and statistical sections but does not include the basic financial statements and our auditor’s report thereon.
Our opinions on the basic financial statements do not cover the other information, and we do not express an opinion or
any form of assurance thereon.
In connection with our audit of the basic financial statements, our responsibility is to read the other information and
consider whether a material inconsistency exists between the other information and the basic financial statements, or the
other information otherwise appears to be materially misstated. If, based on the work performed, we conclude that an
uncorrected material misstatement of the other information exists, we are required to describe it in our report.
Other Reporting Required by Government Auditing Standards
In accordance with Government Auditing Standards, we have also issued our report dated May 19, 2026, on our
consideration of the City’s internal control over financial reporting and on our tests of its compliance with certain
provisions of laws, regulations, contracts, and grant agreements and other matters. The purpose of that report is solely to
describe the scope of our testing of internal control over financial reporting and compliance and the results of that
testing, and not to provide an opinion on the effectiveness of the City’s internal control over financial reporting or on
compliance. That report is an integral part of an audit performed in accordance with Government Auditing Standards in
considering the City’s internal control over financial reporting and compliance.
Abdo
Minneapolis, Minnesota
May 19, 2026
11
(This page left blank intentionally)
12
MANAGEMENT'S DISCUSSION
AND ANALYSIS
Management’s Discussion and Analysis CITY OF MONTICELLO
Management’s Discussion and Analysis
As management of the City of Monticello, Minnesota (the city), we offer readers of the city’s financial statements this
narrative overview and analysis of the financial activities of the city for the fiscal year ended December 31, 2025. We
encourage readers to consider the information presented here in conjunction with additional information that we have
furnished in our letter of transmittal, which can be found starting on page 1 of this report.
Financial Highlights
• The assets and deferred outflows of resources of the city exceeded its liabilities and deferred inflows of
resources at year-end by $184,547,623 (net position). Of this amount, $64,096,687 (unrestricted net
position) may be used to meet the city’s ongoing obligations to citizens and creditors.
• As of the close of the current fiscal year, the city’s governmental funds reported combined ending fund
balances of $22,716,155, an increase of $928,153, or 4.3%. Nonspendable, restricted, and assigned uses
of fund balance totaled $14,387,539, leaving an unassigned fund balance of $8,328,616 which is
$373,214, or 4.7%, higher than the 2024 ending unassigned balance.
• At the end of the current fiscal year, unassigned fund balance for the General Fund was $8,328,616, or
62.9%, of total General Fund expenditures for 2025. It is the city’s policy to have an ending General Fund
balance at 60-75% of the following year’s expenditure budget, which provides a reserve for cash flow
during the first six months of each subsequent year until property tax receipts are distributed by the county
to the local levels of government. Additionally, this reserve threshold provides temporary financing for
unforeseen emergencies.
• In 2025, government-wide capital assets increased by $5,338,598. Governmental activities included
completion of the multi-year downtown roadway and pedestrian project and 7th street retaining wall and
sidewalk projects. Other governmental activities projects include installation of roundabouts on School
Boulevard, continued improvements to the Bertram Chain of Lakes Regional Athletic Park, and the
addition of a new trail on Golf Course Road. Additionally, planning and design for a new public works
facility and future Fallon Avenue reconstruction made progress. Parks, public works, and the building
department purchased new vehicles and equipment. Other new additions were the replacement of the roof
at the parks barn and a new playground structure at West Bridge Park. Business-type projects include
design on a water treatment plant, Ditch 33 improvements, and utility extensions along County Road 39 to
the west.
• The city’s total long-term bonded indebtedness decreased by $2,584,000, or 15.6%, in 2025, which
reflects principal payments made on outstanding bonds. They city did not issue any new bonds in 2025.
Overview of the Basic Financial Statements
The discussion and analysis are intended to serve as an introduction to the city’s basic financial statements. The
city’s basic financial statements are comprised of three components: 1) government-wide financial statements, 2)
fund financial statements, and 3) notes to the financial statements. This report also contains other supplementary
information in addition to the basic financial statements themselves.
COMPONENTS OF
THE ANNUAL COMPREHENSIVE FINANCIAL REPORT
Management’s
Discussion and
Analysis
Basic
Financial
Statements
Required
Supplementary
Information
Government-Wide
Financial
Statements
Fund
Financial
Statements
Notes to the
Financial
Statements
Summary Detail
13
Management’s Discussion and Analysis CITY OF MONTICELLO
Government-Wide Financial Statements – The government-wide financial statements are designed to provide
readers with a broad overview of the city’s finances, in a manner like private sector businesses.
The Statement of Net Position presents information on all the city’s assets and deferred outflows of resources, and
liabilities and deferred inflows of resources, with the difference reported as net position. Over time, increases or
decreases in net position may serve as a useful indicator of whether the financial position of the city is improving or
deteriorating.
The Statement of Activities presents information showing how the city’s net position changed during the most recent
fiscal year. All changes in net position are reported as soon as the underlying event giving rise to the change occurs,
regardless of the timing of related cash flows. Thus, revenues and expenses are reported in this statement for some
items that will only result in cash flows in future fiscal periods (delinquent taxes and special assessments, for
example).
Both government-wide financial statements distinguish functions of the city that are principally supported by taxes
and intergovernmental revenue (governmental activities) from other functions that are intended to recover all or a
significant portion of their costs through user fees and charges (business-type activities). The governmental activities
provided by the city include general government, public safety, public works, sanitation, recreation and culture,
economic development and interest and fiscal charges. Business-type activities include the water, sewer, stormwater,
liquor, fiber optics, and deputy registrar enterprises.
The government-wide financial statements include not only the city itself (known as the primary government), but also
the Economic Development Authority (EDA). The EDA is a legally separate entity which provides redevelopment and
other economic development assistance through the administration of various programs. Financial information for
this component unit is discretely presented in the government-wide financial statements. The government-wide
financial statements can be found starting on page 21 of this report.
Fund Financial Statements – A fund is a grouping of related accounts that is used to maintain control over resources
that have been segregated for specific activities or objectives. The city, like other state and local governments, uses
fund accounting to ensure and demonstrate compliance with finance-related legal requirements. These statements
focus on individual parts of the city government, reporting the city’s operations in more detail than the government-
wide statements. All the city’s funds can be divided into two categories: governmental funds and proprietary funds.
Governmental Funds – Governmental funds are used to account for essentially the same functions reported as
governmental activities in the government-wide financial statements. However, unlike the government-wide financial
statements, governmental fund financial statements focus on near-term inflows and outflows of spendable resources,
as well as the balances of spendable resources available at the end of the fiscal year. Such information may be useful
in evaluating a government’s near-term financing requirements.
Because the focus of governmental funds is narrower than that of the government-wide financial statements, it is
useful to compare the information presented for governmental funds with similar information presented for
governmental activities in the government-wide financial statements. By doing so, readers may better understand the
long-term impact of the government’s near-term financing decisions. Both the governmental funds Balance Sheet
and Statement of Revenue, Expenditures and Changes in Fund Balances provide a reconciliation to facilitate the
comparison between governmental funds and governmental activities.
The city maintains several individual governmental funds. Information is presented separately in the governmental
funds Balance Sheet and in the governmental funds Statement of Revenue, Expenditures and Changes in Fund
Balance for the General Fund, Community Center (special revenue) Fund, Debt Service Fund, Capital Projects Fund,
and Bertram Chain of Lakes (BCOL) Sales Tax Fund, all of which are major funds. Data from the remaining
governmental funds are combined into a single, aggregated presentation. Individual fund data for each of these
nonmajor governmental funds is provided in the form of combining statements or schedules elsewhere in this report.
The city adopts an annual budget for its General Fund and special revenue funds. A budgetary comparison schedule
has been provided within the required supplementary information for the General Fund and Community Center Fund,
which is a major special revenue fund, to demonstrate compliance with the adopted budgets. The governmental fund
financial statements can be found starting on page 24 of this report.
Proprietary Funds – The city maintains two distinct types of proprietary funds. Enterprise funds are used to report
the same functions presented as business-type activities in the government-wide financial statements. The city
maintains six enterprise funds which are used to account for its water, sewer, and stormwater services, municipal
liquor store sales, fiber optics network, and deputy registrar. Internal service funds are an accounting device used to
accumulate and allocate costs internally among the city’s various functions. The city uses internal service funds to
account for benefit accruals, central equipment acquisitions, information technology (IT) services, and facilities
maintenance. Because these internal service fund activities predominantly benefit governmental rather than
business-type functions, they have been included within governmental activities in the government-wide financial
statements.
14
Management’s Discussion and Analysis CITY OF MONTICELLO
Proprietary funds provide the same type of information as the government-wide financial statements, only in more
detail. The proprietary fund financial statements provide separate information for each of the enterprise operations.
The internal service funds are combined into a single, aggregated presentation in the proprietary fund financial
statements. Individual fund data for the internal service funds is provided in the form of combining statements
elsewhere in this report. The proprietary fund financial statements can be found starting on page 32 of this report.
Notes to Basic Financial Statements – The notes to basic financial statements provide additional information that
is essential to obtaining a full understanding of the data provided in the government-wide and fund financial
statements. The notes to the basic financial statements can be found starting on page 38 of this report.
Required Supplementary Information. In addition to the basic financial statements and accompanying notes, this
report also presents certain required supplementary information concerning the City of Monticello’s share of net
pension liabilities (assets) for defined benefit plans, schedules of contributions, and progress in funding its obligation
to provide pension and other postemployment benefits to its employees. Required supplementary information can be
found starting on page 67 of this report.
Other Information – Combining and individual fund financial statements and schedules for nonmajor governmental
funds, internal service funds, and other supplementary schedules are presented immediately following the required
supplemental information. Combining and individual fund statements and schedules can be found starting on page
77.
GOVERNMENT-WIDE FINANCIAL ANALYSIS
NET POSITION
2025 2024 2025 2024 2025 2024
Current and other assets 35,444,107$ $33,142,191 42,021,863$ $35,916,032 77,465,970$ 69,058,223$
Capital assets 90,760,256 86,460,426 40,049,153 39,010,385 130,809,409 125,470,811
Total assets 126,204,363 119,602,617 82,071,016 74,926,417 208,275,379 194,529,034
Deferred outflows of resources 908,396 790,192 161,983 155,753 1,070,379 945,945
Long-term liabilities 13,987,288 16,406,662 2,664,495 3,061,984 16,651,783 19,468,646
Other liabilities 2,157,758 2,290,823 1,126,126 997,244 3,283,884 3,288,067
Total liabilities 16,145,046 18,697,485 3,790,621 4,059,228 19,935,667 22,756,713
Deferred inflows of resources 3,881,018 4,705,977 981,450 1,085,552 4,862,468 5,791,529
Net position
Net investment in capital assets 77,986,107 71,286,189 37,964,925 36,818,066 115,951,032 108,104,255
Restricted 4,502,904 2,798,311 - - 4,502,904 2,798,311
Unrestricted 24,597,684 22,904,847 39,496,003 33,119,324 64,093,687 56,024,171
Total net position 107,086,695$ 96,989,347$ 77,460,928$ 69,937,390$ 184,547,623$ 166,926,737$
Governmental Activities Business-Type Activities Total
By the far the largest portion of the city’s net position (62.8%) reflects investment in capital assets (e.g., land,
buildings, structures, systems, machinery, equipment, infrastructure, and intangible assets), net of any related debt
used to acquire those assets that is still outstanding. The city uses assets to provide services to citizens;
consequently, these assets are not available for future spending. Although the city’s investment in capital assets is
reported net of related debt, it should be noted that resources needed to repay this debt must be provided from other
sources since capital assets themselves cannot be used to liquidate these liabilities.
A small portion of the city’s net position (2.4%) represents resources that are subject to external restrictions on how
they can be used. The remaining unrestricted net position of $64,093,687 may be used to meet the ongoing
obligations to citizens and creditors.
The unrestricted governmental activities net position increased $1,692,837 (7.4%), and business-type activities
unrestricted net position increased $6,376,679 (19.3%). The government-wide total unrestricted net position
increased $8,069,516 (14.4%) reflecting revenues exceeding conservative budgeted estimates and expenditures
below liberal estimates.
The $4,299,830 (5.0%) increase in governmental activities capital assets is related to several ongoing projects, the
largest of which are the School Boulevard roundabout and Golf Course Road trail projects. Business-type capital
assets increased $1,038,768 (2.7%) due to design of the water treatment plant and CSAH 39 West utility expansion
projects. Total net investment in capital assets, which is capital assets less related debt, increased because capital
asset acquisitions less the amount of debt borrowed to acquire assets (none in 2025) exceeded capital asset
disposals and depreciation.
15
Management’s Discussion and Analysis CITY OF MONTICELLO
CHANGE IN NET POSITION
2025 2024 2025 2024 2025 2024
Revenues
Program revenues
Charges for services 5,191,790$ 4,995,809$ 15,689,617$ 15,610,016$ 20,881,407$ 20,605,825$
Operating grants and contributions 757,123 856,498 - - 757,123 856,498
Capital grants and contributions 5,272,598 2,670,075 4,299,822 1,601,506 9,572,420 4,271,581
General revenues
Property taxes 14,129,819 13,241,788 - - 14,129,819 13,241,788
Sales taxes 1,871,746 - - - 1,871,746 -
Franchise taxes 416,389 409,068 - 12,510 416,389 421,578
Unrestricted investment earnings 1,160,271 1,201,839 1,669,399 1,498,907 2,829,670 2,700,746
Gain on sale of assets 29,582 - - - 29,582 -
Total revenues 28,829,318 23,375,077 21,658,838 18,722,939 50,488,156 42,098,016
Expenses
General government 3,253,478 2,984,967 - - 3,253,478 2,984,967
Public safety 4,134,748 4,185,426 - - 4,134,748 4,185,426
Public works 5,319,394 5,172,825 - - 5,319,394 5,172,825
Sanitation 941,458 911,886 - - 941,458 911,886
Recreation and culture 5,187,498 5,067,388 - - 5,187,498 5,067,388
Interest and fiscal charges 342,380 402,869 - - 342,380 402,869
Water - - 1,417,969 1,451,015 1,417,969 1,451,015
Sewer - - 3,512,776 3,065,698 3,512,776 3,065,698
Stormwater - - 659,287 644,602 659,287 644,602
Liquor - - 5,704,020 5,988,195 5,704,020 5,988,195
Fiber optics - - 1,962,788 2,040,533 1,962,788 2,040,533
Deputy registrar - - 740,957 714,541 740,957 714,541
Total expenses 19,178,956 18,725,361 13,997,797 13,904,584 33,176,753 32,629,945
Increase in net position before transfers 9,650,362 4,649,716 7,661,041 4,818,355 17,311,403 9,468,071
Internal transfers 446,986 1,100,000 (446,986) (1,100,000) - -
Special item - - 309,483 - 309,483 -
Change in net position 10,097,348 5,749,716 7,523,538 3,718,355 17,620,886 9,468,071
Net position, January 1 96,989,347 91,239,631 69,937,390 66,219,035 166,926,737 157,458,666
Net position, December 31 107,086,695$ 96,989,347$ 77,460,928$ 69,937,390$ 184,547,623$ 166,926,737$
Governmental Activities Business-Type Activities Total
Governmental Activities. The most significant revenue source for governmental activities is property taxes at 49.0%
of total revenues. Property taxes support the General, Community Center, Capital Project, and Debt Service funds.
Charges for services account for 18.0% of revenues, with about 26.0% of that generated by the Community Center.
Capital grants and contributions include special assessments and revenues from other sources restricted to capital
asset acquisition. Investment earnings include both interest earnings received and the change in the investment fair
values.
Governmental activities revenues increased $5,454,241 (23.3%) in the current year. Charges for services increased
$195,981 (3.9%) with increased operations at the Community Center compared to 2024. Additionally, operating
grants and aids decreased $99,375 (11.6%) mostly due to the completion of previous years grant funded projects.
Capital grants and contributions increased $2,602,523 (97.5%) related to contributions from other governments
toward city capital projects. Property taxes increased by $888,031 (6.7%) while investment earnings decreased
$41,568 (3.5%). A new revenue source – a local sales tax – took effect in April 2025, which added $1,871,746 to
governmental activities revenues.
Public works (engineering, streets, ice and snow removal, shop and garage, street lighting, etc.) expenses are the
most significant (27.7%), followed by recreation and culture (27.0%), public safety (21.6%), general government
(17.0%), sanitation (4.9%), and interest and fiscal charges (1.8%). Included in these amounts is depreciation expense,
which is 22.2% of the total expenses for governmental activities.
Governmental activities expenses increased $453,595 (2.4%) in the current year. The most significant changes in
program expenses were as follows:
• General government expenses increased $268,511 (9.0%) due to an increase in expenses from 2024 for escrow
activity (due to an increase in planning and development projects), the addition of the accounts payable workflow
within Laserfiche, plans related to city hall layout improvements and the addition of a new full time position.
• Public safety decreased $50,678 (1.2%) because of a decrease in the pension expense recognized for the fire
relief association pension according to GASB 68 offset by an increase in the fire pension pass through, facilities
maintenance expenses for the fire station, court fines, and other miscellaneous repair and maintenance and
operating expenses.
• Public works increased 146,569 (2.8%). The main increase to the public works expenses were due to facilities
maintenance chargeback due to repairs to the shop building and asphalt and crack sealer expense for road
repair projects.
16
Management’s Discussion and Analysis CITY OF MONTICELLO
• Recreation and culture increased $120,110 (2.4%). The main increase to was due to facilities maintenance
expenses for the Community Center and salaries for parks and the Community Center.
Gain on sale of capital
assets
0.0%Investment earnings
4.0%
Charges for
services
18.1%
Operating grants
& contributions
2.6%
Capital grants &
contributions
18.5%
Franchise taxes
1.4%Sales taxes
6.0%
Property taxes
49.3%
Revenues by Source -Governmental
Activities
$-
$1
$2
$3
$4
$5
$6
Mi
l
l
i
o
n
s
Program Expenses and Revenues -
Governmental Activities
Business-type Activities. Business-type activities increased the city’s net position by $7,523,538, which is
$3,805,183 more than the prior fiscal year’s increase in business-type net position. There was also an increase in
capital contributions from developers for water/sewer access and trunk charges.
Charges for
services72.3%
Capital grants &
contributions
19.9%Investment earnings
7.7%
Revenues by Source -Business-Type
Activities
$-
$1
$2
$3
$4
$5
$6
$7
Mi
l
l
i
o
n
s
Program Revenues and Expenses -
Business-Type Activities
FINANCIAL ANALYSIS OF THE CITY’S FUNDS
Governmental funds. The focus of the city’s governmental funds is to provide information on near-term inflows,
outflows, and balances of spendable resources. Such information is useful in assessing the city’s financing
requirements. Spendable fund balances may serve as a useful measure of a government’s net resources available
for expenditure at the end of the fiscal year.
On December 31, 2025, the city’s governmental funds reported total ending fund balances of $22,716,155, an
increase of $928,153 (4.3%) when compared with the prior year. Approximately 16.1% or $3,651,747 of the total
ending fund balances comprised of restricted fund balances, which are considered unavailable for appropriation for
general operations. The $358,470 nonspendable fund balance accounted for 1.6% of total governmental fund
balances and is comprised of prepaid items.
At the end of the fiscal year, the General Fund reported a fund balance of $8,647,410, increasing $523,119 (6.4%)
from the prior year. General fund revenues were $296,467 (2.2%) more than the prior fiscal year and expenditures
increased by $668,966 (5.3%).
General government expenditures increased $238,353 (8.0%) due to investment in software upgrades. Public safety
expenditures increased $121,616 (3.1%) due to an increase in the fire pension pass through and fire station facilities
maintenance expenses, they were offset by lower operating expenses. Public works expenditures increased $52,135
(2.0%) due to a crack seal project and street maintenance materials, and Sanitation expenditures increase $29,572
(3.2%) due to an increase in residential accounts included in the contract. There was also a decrease in engineering
costs that were related to the 2024 Safe Streets for All project. Recreation and culture expenditures increased by
$227,290 (10.8%) due to increased wages for seasonal staff and higher public arts costs related to grants funding
received. There was also a decrease in operating supplies, repairs and maintenance, and feasibility planning for the
Bertram Chain of Lakes (BCOL) Regional Athletic Park.
The fund balance in the Community Center Fund decreased $291,361 (86.5%) to $45,361 due to an increase in
expenditures over the increase in revenues. Charges for services increased $85,839 (6.84%) to $1,352,238 in 2025.
Expenditures increased $126,357 (5.8%) to $2,296,065 due to facilities maintenance repairs and increased salary
expenses.
17
Management’s Discussion and Analysis CITY OF MONTICELLO
The fund balance in the Debt Service Fund decreased $80,159 (16.9%) to $394,136. This fund balance decrease
reflects the prior year accumulation of resources to make scheduled bond payments. Special assessment revenue
decreased $5,416 (1.8%) to $278,027 as prepayments were made and no large projects assessed in 2025. In
governmental funds, assessments are recorded as a revenue when collectible, which occurs when it is in the current
period or soon thereafter.
The Capital Projects Fund provides the accounting for acquisition of general government capital assets. Accordingly,
the fund accumulates resources from various sources and expenditures may or may not occur in the same year of
accumulation. Consequently, the fund balance in the Capital Projects Fund decreased $291,869 (3.1%) to
$9,138,301.
The Bertram Chain of Lakes (BCOL) Sales Tax Fund provides the accounting for collection and expenditures of the
0.5% local sales tax, which took effect in April 2025. The sales tax proceeds must be used for the improvement or
rehabilitation of the BCOL Regional Athletic Park and can be spent on a pay-as-you-go basis or can be used to pay
back bonds issued for facilitation of a larger project sooner. Accordingly, the fund accumulates resources regularly
and expenditures may or may not occur in the same year of accumulation. The fund balance in the BCOL Sales Tax
Fund increased to $1,820,306 in 2025.
Proprietary funds. The proprietary funds provide the same type of information found in the business-type activities
in the government-wide financial statements, but in more detail.
Water Fund operating expenses decreased $32,160 (2.2%). Utility employee personal service costs are divided
between the Water Fund and Sewer Fund based on activity. The Water Fund operating revenues increased $202,837
(9.6%) with an increase in rates and adjustments to the usage in each rate tier to help promote water conservation.
The fund’s net position increased $3,271,113 (17.5%) to $21,923,681 due to commercial development trunk and
access fees received. Depreciation expense for the fund totaled $505,042.
Sewer Fund operating expenses increased $454,747 (15.1%) and operating revenues increased $205,138 (6.5%)
with an increase in rates. The fund’s net position increased $2,253,840 (7.8%) to $31,002,625 due to commercial
development trunk and access fees received. Depreciation expense for the fund totaled $1,195,753.
Stormwater operating expenses increased $14,685 (2.3%). Stormwater operating revenues decreased $641 (0.1%),
due to fewer penalties charged for late payments. The fund’s net position increased $1,333,803 (18.6%) to
$8,511,080. Depreciation expense for the fund totaled $446,419.
The Liquor Fund’s net position increased $699,453 (79.4%) to $1,579,83 without any transfers out in 2025. Liquor
and related product sales decreased $143,975 (2.2%) to $6,337,632. Profits from the liquor store are held until
transferred out for another city use. Gross profit increased $86,438 (5.1%) for a total gross profit of $1,775,822.
Operating expenses decreased $21,100 (1.8%) to $1,138,065 and depreciation expense for the fund totaled $19,539.
The Fiber Optics Fund’s net position increased $27,646 (0.2%) to $12,683,822. The fund’s 2025 charges for services
decreased $67,095 (3.5%) to $1,875,964. Excluding depreciation, the operating income was $314,761 in 2025.
Depreciation expense for the fund totaled $394,507. The city contracted for FiberNet operations management in July
2016 and renewed the contract for an additional five-year term in 2021.
The Deputy Registrar Fund (DMV) net position decreased $49,468 (2.7%) to $1,787,173. The decrease is related to
transfers from the DMV fund to the Community Center to support operations and the Park and Pathway Fund for the
new playground structure. Charges for services decreased $50,501 (4.4%) to $1,107,407, and operating expenses
increased $35,903 (5.1%) to $737,506. Depreciation for the fund totaled $33,971.
Other factors of the changes in income from operations have previously been discussed in the government-wide
financial analysis of business-type activities.
GENERAL FUND BUDGETARY HIGHLIGHTS
During the year, there were no amendments to the budget. General Fund revenues and other financing sources
totaled $14,005,347 and exceeded the budget by $824,347 (6.3%). Licenses and permits, investment earnings, and
other revenues were $421,899 (87.5%), $102,988 (41.2%), and $244,138 (36.6%) higher than budget, respectively.
Licenses and permits include building permits fees, investments include the interest earned and adjustments to
market value of investments, and other revenues include charges related to development escrow activity and the
city’s solar garden investment. These revenues can be difficult to predict, and are, therefore, budgeted conservatively.
General Fund expenditures totaled $13,232,228 and were $57,228 (0.4%) over budget. While spending in several
budget units exceeded appropriations, conservative spending in other units and revenues more than budget allowed
for an overall increase in fund balance. Several of the expenditures over budget were offset with associated revenue
above budget; for example, grants related to public arts expenditures or escrow chargebacks related to larger than
anticipated contracted plan review. Other were primary functions of government that, while unanticipated, could not
be avoided, such as the special election for State Senate and the school district referendum in 2025. Within the
expenditure functions, eighteen of twenty-eight reporting units exceeded budget.
18
Management’s Discussion and Analysis CITY OF MONTICELLO
The General Fund year end fund balances for the past ten years are as follows:
$-
$2
$4
$6
$8
$10
Mi
l
l
i
o
n
s
General Fund Balance
CAPITAL ASSETS AND DEBT ADMINISTRATION
CAPITAL ASSETS
Capital assets. The city’s investment in capital assets for its governmental and business-type activities on December
31, 2025 totaled $130,809,409 (net of accumulated depreciation). This investment in capital assets includes land,
construction in progress, buildings, and systems (including infrastructure), and machinery and equipment (including
intangible assets).
Major governmental activities capital assets changes: the completion of the multi-year downtown roadway and
pedestrian project and 7th street retaining wall and sidewalk projects. Other projects include installation of
roundabouts on School Boulevard, continued improvements to the Bertram Chain of Lakes Regional Athletic Park,
and the addition of a new trail on Golf Course Road. Additionally, planning and design for a new public works facility
and future Fallon Avenue reconstruction made progress. Parks, public works, and the building department purchased
new vehicles and equipment. Other new additions were the replacement of the roof at the parks barn and a new
playground structure at West Bridge Park.
Business-type capital assets include the County Road 39 West Utility extension, Ditch 33 project and design of a
water treatment plant. The total increase from the prior fiscal year was 4.3%; governmental activities increased 5.0%
and business-type activities increased 2.7%.
2025 2024 2025 2024 2025 2024
Land 17,304,064$ $17,359,078 922,024$ $867,010 18,226,088$ 18,226,088$
Cons truction in progress 3,798,382 17,999,839 1,635,478 484,514 5,433,860 18,484,353
Buildings and systems 131,775,924 109,551,447 111,346,904 108,994,388 243,122,828 218,545,835
Machinery and equipment 11,880,114 11,320,218 3,727,213 3,651,708 15,607,327 14,971,926
Less: Accumulated depreciation (73,998,228) (69,770,156) (77,582,466) (74,987,235) (151,580,694) (144,757,391)
Net total 90,760,256$ 86,460,426$ 40,049,153$ 39,010,385$ 130,809,409$ 125,470,811$
Governmental Activities Business-Type Activities Total
Additional information on the city’s capital assets can be found in the notes to the financial statements starting on
page 49.
DEBT ADMINISTRATION
Long-term Debt. The city’s outstanding long-term debt, including general obligation bonds, special assessment
bonds, tax abatement bonds, and a Public Facilities Authority (PFA) revenue note, totaled $14,026,000 on December
31, 2025, which is a decrease of $2,584,000 from the prior year. Total long-term debt decreased with regularly
scheduled payments. No new debt was issued in 2025.
Additional information on the city’s long-term liabilities can be found in the notes to the financial statements starting
on page 50 of this report.
2025 2024 2025 2024 2025 2024
General obligation bonds 3,875,000$ 4,365,000$ 695,000$ 910,000$ 4,570,000$ 5,275,000$
Special assessment bonds 3,415,000 4,560,000 - - 3,415,000 4,560,000
Tax abatement bonds 4,880,000 5,505,000 - - 4,880,000 5,505,000
Public Facilities Authority revenue note - - 1,161,000 1,270,000 1,161,000 1,270,000
Total 12,170,000$ 14,430,000$ 1,856,000$ 2,180,000$ 14,026,000$ 16,610,000$
Activities Activities Total
Governmental Business-Type
19
Management’s Discussion and Analysis CITY OF MONTICELLO
ECONOMIC FACTORS AND NEXT YEAR’S BUDGETS AND RATES
• The unemployment rate for the Wright County, Minnesota area for December 31, 2025 was 4.4%, which is lower
than the state average (5.3%) and lower than the national average (4.7%).
• New commercial and residential development continued to grow at a sustainable pace in 2025 and have not
indicated a significant downward trend yet in 2026.
• The occupancy rate of the city’s business district has remained constant over the last few years and new
commercial construction is continuing to grow.
• The prospects for continued residential and large commercial growth in 2026 look promising.
• Inflationary trends in the region have compared favorably to national indices in the last few years; however, the
nationwide effects of inflation in housing prices are found in Monticello as well.
• The city has been approached by two different concepts for construction of data centers. The Council Council
adopted a Data Center Planned Unit Development (DCPUD) ordinance in April 2026 regulating zoning and land
use of such development. It is unknown if either of the concepts will move forward as a formal application for
development.
• The property valuation of the city’s largest taxpayer, the Xcel Energy Nuclear Generating Plant, is assessed by
the State of Minnesota and can experience notable volatility. The city continues to advocate for host communities
at the state level through the Coalition of Utility Cities to minimize impacts on its residents and businesses.
REQUESTS FOR INFORMATION
This financial report is designed to provide a general overview of the city’s finances for all those interested in
governmental finance. Questions concerning any information in the report or requests for additional information
should be addressed to City of Monticello, Finance Department, 505 Walnut Street, Suite 1, Monticello, MN 55362.
20
BASIC STATEMENTS
CITY OF MONTICELLO
Statement of Net Position
December 31, 2025
Component Unit
Economic
Governmental Business-type Development
Activities Activities Total Authority
ASSETS
Cash and investments 25,230,526$ 37,372,702$ 62,603,228$ 3,467,909$
Receivables
Unremitted taxes 46,255 - 46,255 1,659
Delinquent taxes 127,788 - 127,788 4,385
Unremitted special assessments 3,166 1,474 4,640 -
Delinquent special assessments 1,541 43,420 44,961 -
Deferred special assessments 2,235,694 1,301,146 3,536,840 -
Accrued interest 277,916 - 277,916 -
Accounts 373,444 1,113,338 1,486,782 167
Due from other governmental units 4,164,505 944,956 5,109,461 -
Leases 1,367,865 595,418 1,963,283 -
Internal balances 27,287 (27,287)- -
Inventory - 508,870 508,870 -
Prepaid items 388,005 167,826 555,831 4,839
Notes receivable 69,566 - 69,566 386,448
Land held for resale 837,582 - 837,582 2,923,129
Net pension asset - FRA 292,967 - 292,967 -
Capital assets
Nondepreciable 21,102,446 2,557,502 23,659,948 -
Depreciable, net 69,657,810 37,491,651 107,149,461 -
TOTAL ASSETS 126,204,363 82,071,016 208,275,379 6,788,536
DEFERRED OUTFLOWS OF RESOURCES
Deferred other post-employment benefits resources 6,994 3,536 10,530 215
Deferred pension resources 901,402 158,447 1,059,849 15,700
TOTAL DEFERRED OUTFLOWS OF RESOURCES 908,396 161,983 1,070,379 15,915
LIABILITIES
Accounts and contracts payable 901,213 765,621 1,666,834 32,857
Accrued interest payable 12,418 6,474 18,892 -
Other accrued liabilities 120,069 6,761 126,830 -
Due to other governmental units 41,298 347,270 388,568 171
Unearned revenue 22,381 - 22,381 -
Escrow deposits 1,060,379 - 1,060,379 37,642
Noncurrent liabilities
Due within one year
Bonds, notes, leases, claims, compensated absences 2,621,521 433,249 3,054,770 14,950
Total OPEB liability 4,992 2,480 7,472 152
Due in more than one year
Net pension liability - PERA 1,370,013 658,330 2,028,343 66,880
Total OPEB liability 65,041 32,304 97,345 1,987
Bonds, notes, leases, claims, compensated absences 9,925,721 1,538,132 11,463,853 1,661
TOTAL LIABILITIES 16,145,046 3,790,621 19,935,667 156,300
DEFERRED INFLOWS OF RESOURCES
Deferred other post-employment benefits resources 32,038 15,273 47,311 966
Deferred pension resources 1,316,146 413,433 1,729,579 42,291
Deferred MSA state aid 1,235,648 - 1,235,648 -
Deferred lease resources 1,297,186 552,744 1,849,930 -
TOTAL DEFERRED INFLOWS OF RESOURCES 3,881,018 981,450 4,862,468 43,257
NET POSITION
Net investment in capital assets 77,986,107 37,964,925 115,951,032 -
Restricted for
Debt service 949,682 - 949,682 -
Economic development 1,030,636 - 1,030,636 1,384,099
Cemetery operations 231,669 - 231,669 -
Park improvements 1,997,950 - 1,997,950 -
Net pension asset 292,967 - 292,967 -
Tax increment - - -685,516
Unrestricted 24,597,684 39,496,003 64,093,687 4,535,279
TOTAL NET POSITION 107,086,695$ 77,460,928$ 184,547,623$ 6,604,894$
Primary Government
The notes to the financial statements are an integral part of this statement.21
Statement of Activities
For the Year Ended December 31, 2025
Operating Capital
Charges for Grants and Grants and
Expenses Services Contributions Contributions
Governmental activities
General government 3,253,478$ 1,162,964$ 2,508$ -$
Public safety 4,134,748 1,223,374 364,019 -
Public works 5,319,394 227,641 265,744 5,021,855
Sanitation 941,458 971,791 - -
Recreation and culture 5,187,498 1,599,638 124,852 250,743
Economic development - 6,382 - -
Interest on long-term debt 342,380 - - -
Total governmental activities 19,178,956 5,191,790 757,123 5,272,598
Business-type activities
Water 1,417,969 2,308,930 - 1,474,867
Sewer 3,512,776 3,367,698 - 1,648,077
Stormwater 659,287 664,885 - 1,176,878
Liquor 5,704,020 6,336,820 - -
Fiber optics 1,962,788 1,880,469 - -
Deputy registrar 740,957 1,130,815 - -
Total business-type activities 13,997,797 15,689,617 - 4,299,822
Total primary government 33,176,753$ 20,881,407$ 757,123$ 9,572,420$
Component Unit
Economic development authority 1,497,096$ 169,021$ 25,355$ -$
General revenues
Property taxes
Tax increments
Sales taxes
Franchise taxes
Unrestricted investment earnings
Gain on sale of capital assets
Internal transfers
Special item - PFAS settlement
Total general revenues
Change in Net Position
Net Position, January 1
Net Position, December 31
Program Revenues
Functions/Programs
The notes to the financial statements are an integral part of this statement.22
CITY OF MONTICELLO
Component Unit
Economic
Governmental Business-type Development
Activities Activities Total Authority
(2,088,006)$ -$ (2,088,006)$ -$
(2,547,355) - (2,547,355) -
195,846 - 195,846 -
30,333 - 30,333 -
(3,212,265) - (3,212,265) -
6,382 - 6,382 -
(342,380) - (342,380) -
(7,957,445) - (7,957,445) -
- 2,365,828 2,365,828 -
- 1,502,999 1,502,999 -
- 1,182,476 1,182,476 -
- 632,800 632,800 -
- (82,319) (82,319) -
- 389,858 389,858 -
- 5,991,642 5,991,642 -
(7,957,445) 5,991,642 (1,965,803) -
- - - (1,302,720)
14,129,819 - 14,129,819 491,230
- - - 581,773
1,871,746 - 1,871,746 -
416,389 - 416,389 -
1,160,271 1,669,399 2,829,670 153,290
29,582 - 29,582 -
446,986 (446,986) - -
- 309,483 309,483 -
18,054,793 1,531,896 19,586,689 1,226,293
10,097,348 7,523,538 17,620,886 (76,427)
96,989,347 69,937,390 166,926,737 6,681,321
107,086,695$ 77,460,928$ 184,547,623$ 6,604,894$
Net (Expense) Revenue and Changes in Net Position
The notes to the financial statements are an integral part of this statement.23
Balance Sheet
Governmental Funds
101 226 Linked
Community Debt
General Center Service
ASSETS
Cash and investments 9,089,556$ 53,694$ 393,887$
Receivables
Unremitted taxes 46,255 - -
Delinquent taxes 127,788 - -
Unremitted special assessments - - 2,823
Delinquent special assessments - - 1,541
Deferred special assessments 1,095 -566,423
Accrued interest 277,916 --
Accounts 312,009 6,925 -
Due from other governmental units 94,843 - -
Leases 1,367,865 - -
Prepaid items 248,115 39,404 -
Notes receivable - - -
Land held for resale - - -
Total assets 11,565,442$ 100,023$ 964,674$
LIABILITIES
Accounts and contracts payable 245,227$ 16,253$ 2,574$
Other accrued liabilities 96,372 23,697 -
Due to other governmental units 19,604 14,712 -
Unearned revenue 22,381 - -
Escrow deposits 1,060,379 - -
Total liabilities 1,443,963 54,662 2,574
DEFERRED INFLOWS OF RESOURCES
Unavailable revenue - property taxes 127,788 - -
Unavailable revenue - special assessments 1,095 -567,964
Unavailable revenue - state aid and grants 48,000 --
Deferred lease resources 1,297,186 --
Total deferred inflows of resources 1,474,069 -567,964
FUND BALANCES
Nonspendable 318,794 39,404 -
Restricted - - 394,136
Assigned -5,957 -
Unassigned 8,328,616 - -
Total fund balance 8,647,410 45,361 394,136
Total liabilities, deferred inflows of
resources, and fund balances 11,565,442$ 100,023$ 964,674$
December 31, 2025
The notes to the financial statements are an integral part of this statement.24
CITY OF MONTICELLO
401
402
400 406 Total Total
Capital BCOL Nonmajor Governmental
Projects Sales Tax Funds Funds
10,102,361$ 1,172,322$ 2,546,525$ 23,358,345$
- - - 46,255
- - - 127,788
343 - - 3,166
- - - 1,541
1,665,532 -2,644 2,235,694
- - -277,916
- - 54,510 373,444
3,405,034 664,628 - 4,164,505
- - - 1,367,865
- - 272 287,791
- - 69,566 69,566
837,582 - - 837,582
16,010,852$ 1,836,950$ 2,673,517$ 33,151,458$
587,505$ 16,644$ 232$ 868,435$
- - - 120,069
3,832 - - 38,148
- - - 22,381
- - - 1,060,379
591,337 16,644 232 2,109,412
- - - 127,788
1,665,532 -2,644 2,237,235
4,615,682 -- 4,663,682
- - - 1,297,186
6,281,214 -2,644 8,325,891
- - 272 358,470
- 1,820,306 1,437,305 3,651,747
9,138,301 - 1,233,064 10,377,322
- - - 8,328,616
9,138,301 1,820,306 2,670,641 22,716,155
16,010,852$ 1,836,950$ 2,673,517$ 33,151,458$
The notes to the financial statements are an integral part of this statement.25
CITY OF MONTICELLO
Reconciliation of the Governmental Funds Balance Sheet
to the Statement of Net Position
December 31, 2025
Amounts reported for governmental activities in the Statement of Net Position are different because:
Total fund balances - governmental funds 22,716,155$
Long-term assets from pensions reported in governmental activities are not financial resources and, therefore,
are not reported as assets in the funds.292,967
Capital assets used in governmental activities are not financial resources and, therefore, are not reported in
the funds.
Land 17,304,064
Construction in progress 3,798,382
Buildings and systems 131,775,924
Machinery and equipment 5,160,101
Accumulated depreciation (70,924,246) 87,114,225
Governmental funds do not report long-term amounts related to other post-employment benefits and pensions.
Deferred outflows of resources - OPEB 6,994
Deferred outflows of resources - pensions 901,402
Deferred inflows of resources - OPEB (32,038)
Deferred inflows of resources - pensions (1,316,146) (439,788)
Long-term liabilities that pertain to governmental funds, including bonds payable, are not due and payable in
the current period, and, therefore, are not reported as fund liabilities. All liabilities, both current and
long-term, are reported in the Statement of Net Position.
Bonds payable (12,170,000)
Other post-employment benefits liability (70,033)
Net pension liability - PERA (1,370,013) (13,610,046)
Internal service funds are used by management to charge the costs of facilities maintenance, equipment,
information technology, and benefit accrual services to individual funds. The assets and liabilities of the
internal service funds are included in governmental activities in the Statement of Net Position.
Internal service fund net position included in the governmental activities 5,205,256
Less internal services net position allocated to business-type activities 27,287 5,232,543
Some of the city's property taxes, special assessments, and state aids and grants receivable will be collected
after year-end, but are not available soon enough to pay for current period expenditures and, therefore, are
reported as deferred inflows of resources in the governmental funds.5,793,057
Interest on long-term debt is not accrued in governmental funds, but rather is recognized as an expenditure
when due. Accrued interest for general obligation bonds is included in the Statement of Net Position.(12,418)
Net position of governmental activities 107,086,695$
The notes to the financial statements are an integral part of this statement.26
(This page left blank intentionally)
27
Statement of Revenues, Expenditures and Changes in
Governmental Funds
For the Year Ended December 31, 2025
101 226 Linked
Community Debt
General Center Service
Revenues
Property taxes 8,971,436$ 535,000$ 2,196,193$
Sales taxes ---
Franchise taxes 247,743 --
Special assessments 1,595 -278,027
Licenses and permits 903,899 --
Intergovernmental 757,123 --
Charges for services 1,768,997 1,352,238 -
Fines and forfeitures 89,628 --
Investment earnings 352,988 3,190 55,954
Interest on loans ---
Other revenues 911,938 14,276 -
Total revenues 14,005,347 1,904,704 2,530,174
Expenditures
Current
General government 3,228,527 --
Public safety 4,045,498 --
Public works 2,688,382 --
Sanitation 941,458 --
Recreation and culture 2,328,363 2,296,065 -
Capital outlay
General government ---
Public works ---
Recreation and culture ---
Debt service
Principal --2,260,000
Interest and fiscal charges --350,333
Total expenditures 13,232,228 2,296,065 2,610,333
Excess (deficiency) of revenues over
(under) expenditures 773,119 (391,361) (80,159)
Other financing sources (uses)
Transfers in -100,000 -
Transfers out (250,000) --
Total other financing sources (uses)(250,000) 100,000 -
Net change in fund balances 523,119 (291,361) (80,159)
Fund balance at beginning of year 8,124,291 336,722 474,295
Fund balance at end of year 8,647,410$ 45,361$ 394,136$
The notes to the financial statements are an integral part of this statement.28
CITY OF MONTICELLO
Fund Balance
401 Linked
400 Total Total
Capital BCOL Nonmajor Governmental
Projects Sales Tax Funds Funds
2,405,561$ -$-$14,108,190$
-1,871,746 -1,871,746
--168,646 416,389
259,010 -743 539,375
---903,899
750,349 --1,507,472
584,817 -74,355 3,780,407
---89,628
522,032 19,132 129,043 1,082,339
--2,276 2,276
75,086 -250,100 1,251,400
4,596,855 1,890,878 625,163 25,553,121
---3,228,527
---4,045,498
33,737 --2,722,119
---941,458
-32,962 31,944 4,689,334
62,097 --62,097
6,057,198 --6,057,198
68,643 37,610 664,151 770,404
---2,260,000
---350,333
6,221,675 70,572 696,095 25,126,968
(1,624,820) 1,820,306 (70,932) 426,153
1,332,951 -402,000 1,834,951
--(1,082,951)(1,332,951)
1,332,951 -(680,951)502,000
(291,869) 1,820,306 (751,883) 928,153
9,430,170 -3,422,524 21,788,002
9,138,301$ 1,820,306$ 2,670,641$ 22,716,155$
The notes to the financial statements are an integral part of this statement.29
CITY OF MONTICELLO
Reconciliation of the Statement of Revenues, Expenditures and Changes
in Fund Balances of Governmental Funds to the Statement of Activities
For the Year Ended December 31, 2025
Amounts reported for governmental activities in the Statement of Activities are different because
Net change in fund balances - governmental funds 928,153$
Governmental funds reported capital outlays as expenditures. However, in the Statement of Activities the cost
of those assets is allocated over their estimated useful lives and reported as depreciation expense. This
is the amount by which capital outlays exceeded depreciation in the current period.
Capital outlays 6,805,880
Capital contributions 1,217,140
Capital contributions to business-type activities (55,014)
Depreciation (3,607,098) 4,360,908
Repayment of long-term debt principal is an expenditure in the governmental funds, but the repayment
reduces long-term liabilities in the Statement of Net Position.2,260,000
Some expenses reported in the Statement of Activities do not require the use of current financial resources
and, therefore, are not reported as expenditures in the governmental funds.
Change in total OPEB liability and deferred outflows/inflows of resources 22,897
Change accrued interest payable 1,929 24,826
Long-term pension activity is not reported in governmental funds
Pension revenue from state contributions (5,109)
Pension expense 455,502
Deferred inflows of resources are revenues included in the change in net position, but are excluded from the
change in fund balances until they are available to liquidate liabilities of the current period.
Taxes 21,629
Special assessments (292,794)
Grants receivable 2,223,711 1,952,546
Internal service funds are used by management to charge the costs of certain activities to
individual funds. The net revenue of the internal service funds is reported with governmental
activities.
Internal service fund activity included in governmental activities 107,673
Subtract internal service fund activity allocated to business-type activities 12,849 120,522
Change in net position of governmental activities 10,097,348$
The notes to the financial statements are an integral part of this statement.30
(This page left blank intentionally)
31
Statement of Net Position
Proprietary Funds
December 31, 2025
661 662 663
601 602 652
Water Sewer Stormwater
ASSETS
Current assets
Cash and investments 12,100,204$ 16,681,534$ 3,261,690$
Receivables
Unremitted special assessments 1,474 - -
Delinquent special assessments 43,420 - -
Deferred special assessments 578,001 614,009 109,136
Accounts 290,477 628,688 48,001
Lease 19,255 - -
Due from other governmental units 384,193 - 450,075
Inventory - - -
Prepaid items 20,867 114,939 7,475
Total current assets 13,437,891 18,039,170 3,876,377
Noncurrent assets
Lease receivable 576,163 - -
Capital assets
Land 263,157 516,952 136,315
Buildings and systems 22,701,995 50,318,897 20,543,303
Machinery and equipment 363,346 2,594,663 150,803
Construction in progress 1,177,410 - 458,068
Total capital assets 24,505,908 53,430,512 21,288,489
Less accumulated depreciation (15,647,665) (38,411,294) (16,565,556)
Total capital assets (net)8,858,243 15,019,218 4,722,933
Total noncurrent assets 9,434,406 15,019,218 4,722,933
TOTAL ASSETS 22,872,297 33,058,388 8,599,310
DEFERRED OUTFLOWS OF RESOURCES
Deferred other post-employment benefits resources 656 724 417
Deferred pension resources 29,111 25,868 10,953
TOTAL DEFERRED OUTFLOWS OF RESOURCES 29,767 26,592 11,370
LIABILITIES
Current liabilities
Accounts and contracts payable 183,685 6,625 21,129
Accrued interest payable - 6,474 -
Other accrued liabilities 4,850 - -
Due to other governmental units 5,532 3,701 -
Bonds and loans payable due within one year - 336,000 -
Compensated absences due within one year 20,675 20,675 -
Total OPEB liability due within one year 677 594 153
Total current liabilities 215,419 374,069 21,282
Noncurrent liabilities
Bonds and loans payable - net current portion - 1,520,000 -
Compensated absences payable - net current portion 2,297 2,297 -
Total OPEB liability - net current portion 6,791 7,302 3,327
Net pension liability 120,955 107,483 45,506
Total noncurrent liabilities 130,043 1,637,082 48,833
TOTAL LIABILITIES 345,462 2,011,151 70,115
DEFERRED INFLOWS OF RESOURCES
Deferred other post-employment benefits resources 4,217 3,705 907
Deferred pension resources 75,960 67,499 28,578
Deferred lease resources 552,744 - -
TOTAL DEFERRED INFLOWS OF RESOURCES 632,921 71,204 29,485
NET POSITION
Net investment in capital assets 8,681,604 13,163,218 4,701,804
Unrestricted 13,242,077 17,839,407 3,809,276
TOTAL NET POSITION 21,923,681$ 31,002,625$ 8,511,080$
Business-Type Activities – Enterprise Funds
The notes to the financial statements are an integral part of this statement.32
CITY OF MONTICELLO
Governmental
Activities -
609 656 653
Deputy Internal
Liquor Fiber Optics Registrar Totals Service Funds
1,490,134$ 2,484,654$ 1,354,486$ 37,372,702$ 1,872,181$
- - - 1,474 -
- - - 43,420 -
- - - 1,301,146 -
- 144,672 1,500 1,113,338 -
- - - 19,255 -
5,572 - 105,116 944,956 -
508,870 - -508,870 -
18,717 1,000 4,828 167,826 100,214
2,023,293 2,630,326 1,465,930 41,472,987 1,972,395
- - - 576,163 -
5,600 - - 922,024 -
848,997 15,784,828 1,148,884 111,346,904 -
286,263 305,726 26,412 3,727,213 6,720,013
- - - 1,635,478 -
1,140,860 16,090,554 1,175,296 117,631,619 6,720,013
(980,695) (5,653,740) (323,516) (77,582,466) (3,073,982)
160,165 10,436,814 851,780 40,049,153 3,646,031
160,165 10,436,814 851,780 40,625,316 3,646,031
2,183,458 13,067,140 2,317,710 82,098,303 5,618,426
1,119 - 620 3,536 -
53,088 - 39,427 158,447 -
54,207 - 40,047 161,983 -
169,872 383,318 992 765,621 32,778
- - - 6,474 -
1,911 - - 6,761 -
68,861 - 269,176 347,270 3,150
- - - 336,000 -
36,752 - 19,147 97,249 316,521
630 - 426 2,480 -
278,026 383,318 289,741 1,561,855 352,449
- - - 1,520,000 -
7,327 - 6,211 18,132 60,721
9,506 - 5,378 32,304 -
220,573 - 163,813 658,330 -
237,406 - 175,402 2,228,766 60,721
515,432 383,318 465,143 3,790,621 413,170
3,878 - 2,566 15,273 -
138,521 - 102,875 413,433 -
- - -552,744 -
142,399 - 105,441 981,450 -
160,165 10,406,354 851,780 37,964,925 3,642,601
1,419,669 2,277,468 935,393 39,523,290 1,562,655
1,579,834$ 12,683,822$ 1,787,173$ 77,488,215 5,205,256$
Adjustment to reflect the cumulative internal balance for
the net effect of the activity between the internal service
funds and the enterprise funds over time (27,287)
Net position of business-type activities (pg. 19)77,460,928$
Business-Type Activities – Enterprise Funds
The notes to the financial statements are an integral part of this statement.33
Statement of Revenues, Expenses and Changes in Net Position
Proprietary Funds
For the Year Ended December 31, 2025
661 662 663
601 602 652
Water Sewer Stormwater
Sales and cost of sales
Net sales
Cost of sales
Gross profit
Operating revenues
Charges for services 2,205,880$ 3,244,408$ 664,979$
Other 103,050 123,290 (94)
Total operating revenues 2,308,930 3,367,698 664,885
Operating expenses
Personal services 462,891 401,770 171,990
Materials and supplies 85,710 109,942 3,952
Other services and charges 363,339 1,761,865 36,926
Depreciation 505,042 1,195,753 446,419
Total operating expenses 1,416,982 3,469,330 659,287
Operating income (loss)891,948 (101,632) 5,598
Nonoperating revenues (expenses)
Investment earnings 539,801 749,148 151,327
Interest expense - (41,753) -
Gain on sale of capital asset - --
Total nonoperating revenues (expenses)539,801 707,395 151,327
Income before capital contributions and transfers 1,431,749 605,763 156,925
Capital contributions 1,474,867 1,648,077 1,176,878
Capital contributions from governmental activities 55,014 - -
Transfers out - - -
Special item - PFAS settlement 309,483 - -
Change in net position 3,271,113 2,253,840 1,333,803
Net Position, January 1 18,652,568 28,748,785 7,177,277
Net Position, December 31 21,923,681$ 31,002,625$ 8,511,080$
Business-Type Activities – Enterprise Funds
The notes to the financial statements are an integral part of this statement.34
CITY OF MONTICELLO
Governmental
Activities -609 656 653 Linked
Deputy Internal
Liquor Fiber Optics Registrar Totals Service Funds
6,337,632$ 6,337,632$
(4,561,810) (4,561,810)
1,775,822 1,775,822
- 1,875,964$ 1,107,407$ 9,098,638 2,042,965$
(812) 4,505 23,408 253,347 100,546
(812) 1,880,469 1,130,815 9,351,985 2,143,511
806,393 3,737 599,650 2,446,431 399,070
48,010 93,945 7,131 348,690 139,315
264,123 1,468,026 96,754 3,991,033 959,610
19,539 394,507 33,971 2,595,231 645,357
1,138,065 1,960,215 737,506 9,381,385 2,143,352
636,945 (79,746) 393,309 1,746,422 159
62,508 107,392 59,223 1,669,399 77,932
- - - (41,753) -
- - - - 29,582
62,508 107,392 59,223 1,627,646 107,514
699,453 27,646 452,532 3,374,068 107,673
- - - 4,299,822 -
- - - 55,014 -
- - (502,000) (502,000) -
- - -309,483 -
699,453 27,646 (49,468) 7,536,387 107,673
880,381 12,656,176 1,836,641 5,097,583
1,579,834$ 12,683,822$ 1,787,173$ 5,205,256$
Adjustment to reflect the consolidation of internal service
fund related to enterprise funds (12,849)
Change in net position of business-type activities (pg. 21) 7,523,538$
Business-Type Activities – Enterprise Funds
The notes to the financial statements are an integral part of this statement.35
Statement of Cash Flows
Proprietary Funds
For the Year Ended December 31, 2025
661 662/602 663/652
601 602 652
Water Sewer Stormwater
Cash flows from operating activities
Cash received from customers and users 2,516,280$ 3,289,911$ 544,838$
Cash from interfund services provided - - -
Cash paid to suppliers for goods and services (496,296) (1,934,897) (66,634)
Cash paid to employees (475,770) (421,742) (185,793)
Cash paid to other funds for services provided (30,190) (31,172) -
Net cash provided by operating activities 1,514,024 902,100 292,411
Cash flows from noncapital financing activities
Transfers to other funds - - -
Cash flows from capital and related financing activities
Capital contributions 266,300 559,721 236,274
Acquisition of capital assets (688,756) (134,605) (359,458)
Principal paid on long-term debt - (324,000) -
Interest and fiscal charges paid on long-term debt - (42,725) -
Net cash provided (used) by capital and related
financing activities (422,456) 58,391 (123,184)
Cash flows from investing activities
Interest on investments 539,801 749,148 151,327
Net increase (decrease) in cash and cash equivalents 1,631,369 1,709,639 320,554
Cash and cash equivalents, January 1 10,468,835 14,971,895 2,941,136
Cash and cash equivalents, December 31 12,100,204$ 16,681,534$ 3,261,690$
Operating income (loss)891,948$ (101,632)$ 5,598$
Adjustments to reconcile operating income (loss) to
net cash provided by operating activities
Depreciation 505,042 1,195,753 446,419
OPEB expense (2,530) (2,168) (1,084)
Other expense related to operations 309,483 - -
(Increase) decrease in assets
Special assessments receivable (46,573) 7,286 -
Accounts receivable (35,469) (85,073) 4,413
Due from other governmental units - - (124,460)
Leases 18,197 - -
Inventory - - -
Prepaid items (1,382) (83,634) (1,184)
(Increase) decrease in deferred outflows
Deferred other post-employment benefits resources 181 155 78
Deferred pension resources (2,981) (1,313) (320)
Increase (decrease) in liabilities
Accounts and contracts payable (66,881) (11,514) (24,572)
Other liabilities (9,150) - -
Due to other governmental units (9,174) 886 -
Compensated absences 8,248 8,248 -
Net pension liability (7,419) (13,156) (6,731)
Increase (decrease) in deferred inflows
Deferred other post-employment benefits resources (233) (200) (100)
Deferred pension resources (8,145) (11,538) (5,646)
Deferred lease resources (29,138) - -
Net cash provided by operating activities 1,514,024$ 902,100$ 292,411$
Schedule of noncash investing, capital and
financing activities:
Gain on disposal of capital assets -$ -$ -$
Disposal of capital assets -$ -$ -$
Capital assets purchased on account 176,639$ -$ 21,129$
Capital contributions 682,287$ 758,055$ 654,647$
Business-Type Activities – Enterprise Funds
The notes to the financial statements are an integral part of this statement.36
CITY OF MONTICELLO
Governmental
Activities609656653
Deputy Internal
Liquor Fiber Optics Registrar Totals Service Funds
6,330,742$ 1,821,304$ 1,147,396$ 15,650,471$ -$
- - - - 2,143,511
(4,873,105) (1,567,545) (44,436) (8,982,913) (1,114,465)
(881,227) (3,737) (632,845) (2,601,114) (379,285)
(26,556) (236) (60,872) (149,026) -
549,854 249,786 409,243 3,917,418 649,761
- - (502,000) (502,000) -
- - - 1,062,295 -
- (48,935) (24,014) (1,255,768) (551,267)
- - - (324,000) -
- - - (42,725) -
- (48,935) (24,014) (560,198) (551,267)
62,508 107,392 59,223 1,669,399 77,932
612,362 308,243 (57,548) 4,524,619 176,426
877,772 2,176,411 1,412,034 32,848,083 1,695,755
1,490,134$ 2,484,654$ 1,354,486$ 37,372,702$ 1,872,181$
636,945$ (79,746)$ 393,309$ 1,746,422$ 159$
19,539 394,507 33,971 2,595,231 645,357
(2,891) - (2,530) (11,203) -
- - -309,483 -
- - - (39,287) -
- (59,165) (500) (175,794) -
(5,572) - (17,666) (147,698) -
- - -18,197 -
(18,688) - -(18,688) -
(1,337) - (716) (88,253) (11,452)
207 - 181 802 -
547 - (2,965) (7,032) -
(12,544) (5,810) (707) (122,028) (4,091)
(506) - - (9,656) -
6,851 - 34,747 33,310 3
4,617 - 2,158 23,271 19,785
(42,931) - (15,320) (85,557) -
(266) - (233) (1,032) -
(34,117) - (14,486) (73,932) -
- - -(29,138) -
549,854$ 249,786$ 409,243$ 3,917,418$ 649,761$
-$ -$ -$ -$ 29,582$
-$ -$ -$ -$ 81,201$
-$ 30,460$ -$ 228,228$ 3,430$
-$ -$ -$ 2,094,989$ -$
Business-Type Activities – Enterprise Funds
The notes to the financial statements are an integral part of this statement.37
Notes to the Financial Statements CITY OF MONTICELLO
NOTE 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
The basic financial statements of the City of Monticello, Minnesota (the city) have been prepared in
conformity with accounting principles (GAAP) generally accepted in the United States of America as
applied to governmental units by the Governmental Accounting Standards Board (GASB). GASB is the
accepted standard-setting body for establishing governmental accounting and financial reporting
principles.
A. Reporting entity
Incorporated in 1856, the City of Monticello is designated as a third-class city (population 10,001 to
20,000) and governed by statutory city code under Optional Plan A in Minnesota statutes. The city falls
under section 501(a) of the Internal Revenue Code. The five-member mayor-council is elected on
staggered, even-numbered years. Councilors are elected at-large to four-year terms while the mayor is
elected to a two-year term. The governing body appoints an administrator to implement policies and
oversee daily operations.
The accompanying financial statements include all funds, departments, agencies, boards, commissions,
and other organizations that comprise the city, along with any component units.
Component units are legally separate entities for which the city (primary government) is financially
accountable, or for which the exclusion of the component unit would render the financial statements of
the primary government misleading. Criteria used to determine if the primary government is financially
accountable for a component unit includes whether or not the primary government appoints the voting
majority of the potential component unit’s governing body, is able to impose its will on the potential
component unit, is in a relationship of financial benefit or burden with the potential component unit, or is
fiscally depended upon by the potential component unit.
The Monticello Economic Development Authority (EDA) is a legally separate entity created pursuant to
Minnesota Statutes § 469.090 through § 469.108 to carryout economic and industrial development and
redevelopment within the city in accordance with policies established by the City Council. The seven-
member Board of Directors consists of two council members and five members from the community
appointed by the City Council. Management of the city has complete operational responsibility of the
EDA’s activities, and the City Council reviews and approves the tax levy and all expenditures for the EDA.
Because the council does not make up a majority of the EDA board and there is no financial burden or
benefit relationship between the city and EDA, the EDA is reported as a discretely presented component
unit of the city as a separate column in the government-wide financial statements. Separate financial
statements are not issued for this component unit.
The Mayor and Council are responsible for appointing some members of other organizations. However,
the city’s accountability for these organizations does not extend beyond making appointments.
B. Government-wide and fund financial statements
The government-wide financial statements (i.e., the statement of net position and the statement of
activities) report information on all the activities of the primary government and its component unit.
Governmental activities, which normally are supported by taxes and intergovernmental revenues, are
reported separately from business-type activities, which rely to a significant extent on fees and charges
for support.
The statement of activities demonstrates the degree to which the direct expenses of a given function or
segment are offset by program revenues. Direct expenses are those that are clearly identifiable with a
specific function. Program revenues include 1) charges to customers or applicants who purchase, use,
or directly benefit from goods, services, or privileges provided by a given function or segment and 2)
grants and contributions that are restricted to meeting the operation or capital requirements of a particular
function or segment. Taxes and other items not properly included among program revenues are reported
instead as general revenues.
Separate financial statements are provided for governmental funds and proprietary funds. Major
individual governmental funds and major individual enterprise funds are reported as separate columns in
the fund financial statements. Aggregated information for the remaining nonmajor funds is reported in
single columns in the respective fund financial statements.
38
Notes to the Financial Statements CITY OF MONTICELLO
The city applies restricted resources first when an expense is incurred for which both restricted and
unrestricted resources are available. Depreciation expense is included in the direct expense of each
function. Interest on long-term debt of governmental activities is considered an indirect expense and is
reported separately on the Statement of Activities.
C. Measurement focus, basis of accounting, and financial statement presentation
The government-wide financial statements are reported using the economic resources measurement
focus and the accrual basis of accounting, as are the proprietary fund financial statements. Revenues
are recorded when earned and expenses are recorded when a liability is incurred, regardless of the timing
of related cash flows. Property taxes and special assessments, if levied, are recognized as revenues in
the year for which they are levied. Grants and similar items are recognized as revenue as soon as all
eligibility requirements imposed by the provider have been met.
Governmental fund financial statements are reported using the current financial resources measurement
focus and the modified accrual basis of accounting. Revenues are recognized as soon as they are both
measurable and available. Revenues are considered available when they are collectible in the current
period or soon enough thereafter to pay liabilities of the current period. For this purpose, the city considers
revenues to be available if they are collected within 60 days of the end of the current fiscal period.
Expenditures are recorded when a liability is incurred, as under accrual accounting. However, debt
service expenditures, as well as expenditures related to claims and judgments, compensated absences,
other post-employment benefits, and net pension liabilities, are recognized as expenditures to the extent
they have matured. Capital asset acquisitions are reported as capital outlay expenditures in the
governmental funds. Proceeds from long-term debt are reported as other financing sources.
Property taxes, franchise taxes, licenses, and investment earnings associated with the current fiscal
period are all considered to be susceptible to accrual and have been recognized as revenues of the
current fiscal period. Only the portion of special assessments receivable due within the current fiscal
period is susceptible to accrual as revenue of the current period. All other revenue items are measurable
and available only when cash is received by the city.
Revenue resulting from exchange transactions, in which each party gives and receives essentially equal
value, is recorded on the accrual basis when the exchange takes place. On a modified accrual basis,
revenue is recorded in the year in which the resources are measurable and become available.
Non-exchange transactions, in which the city receives value without directly giving equal value in return,
include property taxes, grants, entitlement and donations. On an accrual basis, revenue from property
taxes is recognized in the year for which the tax is levied. Revenue from grants, entitlements and
donations is recognized in the year in which all eligibility requirements have been satisfied. Eligibility
requirements include timing requirements, which specify the year when the resources are required to be
used or the year when use is first permitted, matching requirements, in which the city must provide local
resourses to be used for specified purpose, and expenditure requirements, in which the resources are
provided to the city on a reimbursement basis. On a modified accrual basis, revenue from non-exchange
transactions must also be available before it can be recognized.
Major Governmental Funds – The major governmental funds reported by the city are as follows:
General Fund – The General Fund is used to account for all financial resources except those required
to be accounted for in another fund.
Community Center Fund – The Community Center (special revenue) Fund accounts for the revenues
and expenditures related to the operations of the community center. In addition to a property tax
allocation, the community center generates significant revenue from charges for memberships,
program activities, and space rentals.
Debt Service Fund – The Debt Service Fund is used to account for the accumulation of resources for
and the payment of long-term debt principal, interest, and related costs.
Capital Projects Fund – The Capital Projects Fund is used to account for financial resources to be
used for the acquisition or construction of major capital facilities and infrastructure (other than those
financed by proprietary funds).
39
Notes to the Financial Statements CITY OF MONTICELLO
BCOL Sales Tax Fund – The BCOL (Bertram Chain of Lakes) Sales Tax Fund is a capital projects
fund which accounts for the for financial resources (including sales tax collections and grants) to be
used for the rehabilitation and improvement of the BCOL regional park.
Major Proprietary Funds – The city reports the following major proprietary (enterprise) funds:
Water Fund – The Water Fund is used to account for all activities necessary to provide water services
to the residents and businesses of the city.
Sewer Fund – The Sewer Fund is used to account for all activities necessary to provide sewer
services to the residents and businesses of the city.
Stormwater Fund – The Stormwater Fund is used to account for all activities necessary to provide
stormwater maintenance and street sweeping services to the residents and businesses of the city.
Liquor Fund – The Liquor Fund is used to account for operations of the city’s municipal liquor store.
Fiber Optics Fund – The Fiber Optics Fund is used to account for all activities necessary to provide
fiber optic services to the residents and businesses of the city.
Deputy Registrar Fund – The Deputy Registrar Fund is used to account for the operation of the city’s
department of motor vehicles.
Additionally, the city reports the following fund type:
Internal Service Funds – These funds account for the city’s benefit accrual, central equipment,
information technology, and facilities maintenance services. Internal service funds operate in a
manner similar to enterprise funds; however, they provide services primarily to other city
departments.
As a general rule, the effect of interfund activity has been eliminated from the government-wide financial
statements. Exceptions to this general rule are charges between the city’s enterprise funds and various
other functions of the city. Elimination of these charges would distort the direct costs and program
revenues of the various functions involved.
Amounts reported as program revenues include 1) charges to customers or applicants for goods,
services, or privileges provided, 2) operating grants and contributions, and 3) capital grants and
contributions, including special assessments. Internally dedicated resources are reported as general
revenues rather than as program revenues. Likewise, general revenues include all taxes the city has the
authority to impose.
Proprietary funds distinguish operating revenues and expenses from non-operating items. Operating
revenues and expenses generally result from providing services and producing and delivering goods in
connection with a proprietary fund’s principal ongoing operations. The principal operating revenues of the
city’s enterprise and internal service funds are charges to customers (or departments) for sales and
services. Operating expenses for enterprise and internal service funds include cost of sales and services,
administrative expenses, and depreciation on capital assets. All revenue and expenses not meeting this
definition are reported as non-operating revenues and expenses.
Aggregated information for the internal service funds is reported in a single column in the proprietary fund
financial statements. Because the principal user of the internal services is the city’s governmental
activities, the financial statements of the internal service funds are consolidated into the governmental
column when presented in the government-wide financial statements. The cost of these services is
reported in the appropriate functional activity.
D. Cash and Investments
Cash and investments include balances from all funds that are combined and invested to the extent
available in savings accounts, certificates of deposit, U.S. government obligations, and other securities
authorized by state statutes and the city’s investments policy. Earnings from investments are allocated
to the respective funds based on participation by each fund.
40
Notes to the Financial Statements CITY OF MONTICELLO
For purposes of the Statement of Cash Flows, the city considers all highly liquid debt instruments with an
original maturity from the time of purchase by the city of three months or less to be cash equivalents. The
proprietary fund’s equity in the government-wide cash and investment management pool is considered
cash equivalent.
Investments are generally stated at fair value, except for investments in external investment pools, which
are stated at amortized cost. Short-term highly liquid debt instruments (including commercial paper,
banker’s acceptances, and U.S. treasury and agency obligations) purchased with a remaining maturity
of one year or less are reported at amortized cost. Investment earnings are accrued at the balance sheet
date.
The city categorizes its fair value measurements within the fair value hierarchy established by accounting
principles generally accepted in the United States of America. The hierarchy is based on the valuation
inputs used to measure the fair value of the asset as follows:
• Level 1 inputs are quoted prices in active markets for identical assets.
• Level 2 inputs are significant other observable inputs.
• Level 3 inputs are significant unobservable inputs.
Securities and certificates of deposit classified in Level 2 of the fair value hierarchy are valued using a
matrix pricing technique. Matrix pricing is used to value securities based on the securities’ relationship to
benchmark quoted price as outlined in Note 2.
E. Property Taxes
The city council sets property tax levies each year which are certified to Wright County for collection in
the following year. In Minnesota, counties function as collection agents for all property taxes.
Wright County spreads all levies over taxable property. Such taxes become a lien on January 1 and are
recorded as receivables by the city on that date. Most property taxes can be paid without penalty and
interest by taxpayers in two equal installments on May 15 and October 15. Wright County provides tax
settlements to cities and other taxing districts three times throughout the year.
Within the governmental fund financial statements, the city recognizes property tax revenue when it
becomes both measurable and available to finance expenditures of the current period. Taxes which
remain unpaid as of December 31 are classified as delinquent taxes receivable and are offset by deferred
inflows of resources because it is not available to finance current expenditures. Deferred inflows of
resources in governmental activities are susceptible to full accrual on the government-wide financial
statements.
F. Special Assessments
Special assessments are levied against the benefiting properties for the assessable costs of special
assessment improvement projects in accordance with Minnesota Statutes. The city usually adopts
assessment rolls when individual public improvement projects are complete or substantially complete.
The assessments are collectible over a term of years generally consistent with the term of years for the
related bond issue.
Collection of annual installments (including interest) is managed by the county in the same manner as
property taxes. Property owners are allowed to prepay total future installments without interest or
prepayment penalties.
Once a special assessment roll is adopted, the amount attributed to each parcel is a lien upon that
property until full payment is made or the amount is determined to be excessive by the city council or
court action. If special assessments are left unpaid, the property is subject to tax forfeited sale and the
first proceeds of that sale (after costs, penalties, and expenses of sale) are remitted to the city in payment
of delinquent special assessments. Generally, the city will collect the full amount of its special
assessments not adjusted by city council or court action. Pursuant to state statutes, a property shall be
subject to tax forfeit sale after three years of delinquency except for homesteaded, agricultural or
seasonal recreational property, which is subject to sale after five years.
41
Notes to the Financial Statements CITY OF MONTICELLO
These assessments are recorded as delinquent (levied, but not yet paid) and deferred (certified, but not
yet levied) special assessments receivable, and are offset by deferred inflows of resources in the
governmental fund financial statements. Unremitted special assessments are amounts collected by
Wright County but not paid to the city before year-end.
G. Receivables
Utility and miscellaneous accounts receivable are reported at gross value. Since the city is generally able
to certify delinquent amounts to the county for collection as special assessments, no allowance for
uncollectible accounts has been provided on current receivables.
The city contracted with a third party to manage its fiber optic network, FiberNet, beginning on
July 1, 2016. On a monthly basis, the city receives amounts billed by Arvig with an estimated portion
withheld for uncollectible accounts. Customer receivable balances are carried by Arvig rather than the
city. Therefore, no allowance for uncollectible accounts is set up in the proprietary Fiber Optics Fund.
A receivable is considered past due if any portion of the receivable balance is outstanding for more than
30 days. Interest is charged on receivables that are considered past due. Accrual of interest is not
suspended until a receivable is determined to be uncollectible. Provisions for bad debts would be
immaterial, and none have been made for 2025.
Interest receivable is recorded as revenue in the year the interest is earned and is available to pay
liabilities of the current period. The interest receivable balance is reported as one amount in the General
Fund while all other funds receive interest revenue distributions in cash.
H. Lease Receivable
The city’s lease receivable is measured at the present value of lease payments expected to be received
during the lease terms.
A deferred inflow of resources is recorded for leases. The deferred inflow of resources is recorded at the
initiation of each lease in an amount equal to the initial recording of the lease receivable. The deferred
inflow of resources is amortized on a straight-line basis over the term of each lease.
I. Inventories
The inventories of the proprietary funds are stated at cost using the first-in, first-out (FIFO) method.
Enterprise fund inventory consists of merchandise held for resale at the city-owned Hi-Way Liquors store.
J. Prepaid Items
Payments to vendors for services that will benefit future accounting periods are recorded as prepaid
items. Prepaid items are accounted for using the consumption method. Fund balance in an amount equal
to the prepaid balance in the related funds is not available for appropriation, and is, therefore, classified
as nonspendable in the governmental fund financial statements.
K. Notes Receivable
Notes receivable consist of loans made by the city or EDA to area businesses for development or
redevelopment purposes. The terms and interest rates of the individual loans vary. Notes receivable that
are loaned to another entity are offset by deferred inflows of resources in the governmental funds.
L. Land Held for Resale
Land held for resale is recorded in the governmental Capital Project Fund and discretely presented
Economic Development Authority component unit at the lower of acquisition or market value. Fund
balances are reported as restricted or assigned in an amount equal to the land’s carrying value as these
assets are not available for appropriation.
M. Capital Assets
Capital assets, which include property, plant, equipment, and infrastructure assets (roads, bridges,
sidewalks, and similar items) are reported in the applicable governmental or business-type activities
columns in the government-wide financial statements and are not reported in the governmental funds
financial statements. Such assets are capitalized at historical cost or estimated historical cost for assets
where actual historical cost is not available.
42
Notes to the Financial Statements CITY OF MONTICELLO
Donated capital assets are recorded at their estimated acquisition value at the date of donation. The city’s
capitalization policy divides each asset into a class with a related threshold and useful life as follows:
Class of Asset
Threshold
Level
Useful Life
(Years)
Land $1 N/A
Land improvements $50,000 10 – 20
Building/building improvements $20,000 12 – 40
Primary infrastructure and utility $75,000 10 – 40
Secondary infrastructure $25,000 10 – 40
Equipment $10,000 5 – 20
Software and non-tangible $10,000 5 – 20
The cost of normal maintenance and repairs that does not add to the value of the asset or materially
extend an asset’s useful life is not capitalized. In the case of initial capitalization of general infrastructure
assets, the city elected to fully capitalize the infrastructure capital assets regardless of their acquisition
date or amount.
Capital assets are depreciated using the straight-line method over their estimated useful lives shown in
the previous table. Since surplus assets are generally sold for an immaterial amount when no longer
needed for city purposes, no salvage value is taken into consideration for depreciation purposes. Capital
assets not being depreciated include land and land improvements and construction in progress.
N. Deferred Outflows of Resources
In addition to assets, the Statement of Net Position and/or Balance Sheet will sometimes report a
separate section for deferred outflows of resources. This separate financial statement element represents
a consumption of net assets that applies to future periods and so will not be recognized as an outflow of
resources (expense/expenditure) until that time. The city has two types of items, which arise under a full
accrual basis of accounting, that qualify for reporting in this category. Accordingly, the items, deferred
other post-employment benefits resources and deferred pension resources, are reported only in the
Statement of Net Position. These items result from other post-employment benefits and pension-related
actuarial calculations and current year contributions made subsequent to the measurement date.
O. Long-Term Liabilities
In the government-wide and proprietary fund financial statements, long-term debt and other long-term
obligations are reported as liabilities. Bond premiums and discounts, if material, are deferred and
amortized over the life of the bonds using the straight-line method.
In the fund financial statements, governmental fund types recognize bond premiums and discounts during
the period of issuance. Premiums received on debt issuances are reported as other financing sources
while discounts on debt issuances are reported as other financing uses. The par amount of debt issued
is reported as other financing sources. Issuance costs, whether withheld from the actual debt proceeds
received or not, are reported as debt service expenditures.
P. Compensated Absences Payable
City employees earn paid-time-off (PTO) based upon the number of completed years of service and
employment status. All new full-time employees receive PTO. Full-time employees who resign or leave
city employment voluntarily and in good standing, after giving proper notice, shall be compensated for
unused days under their respective plan upon termination of employment. PTO is credited at the
beginning of each fiscal year for existing employees and prorated for the fiscal year for new and
terminated employees.
PTO benefit: Up to 320 hours accrued at year-end plus any current year hours earned to their date of
severance multiplied by their hourly rate at the time of severance.
43
Notes to the Financial Statements CITY OF MONTICELLO
Beginning in 2024 and pursuant to Minnesota state statutes, the city implemented an Earned Sick and
Safe Time (ESST) benefit to all eligible employees. Employees earning PTO do not earn a separate
ESST benefit.
ESST benefit: Accrue 1 hour of leave for every 30 hours worked up to 48 hours in a calendar year with a
balance not to exceed 80 hours at any point in time.
All compensated absences are accrued when incurred in the government-wide and proprietary fund
financial statements. The liability for governmental funds is recorded in the Benefit Accrual (internal
service) Fund. Resignations and retirements of employees reduce the liability in the Benefit Accrual Fund
or the applicable enterprise fund.
Q. Pensions
For purposes of measuring the net pension liability (asset), deferred outflows/inflows of resources, and
pension expense, information about the fiduciary net position of the Public Employees Retirement
Association (PERA) and Monticello Fire Relief (FRA) and additions to/deductions from each plan’s
fiduciary net position have been determined on the same basis as they are reported by each plan. For
this purpose, plan contributions are recognized as of employer payroll paid dates and benefit payments
and refunds are recognized when due and payable in accordance with the benefit terms. Investments
are reported at fair value. The General Fund or applicable enterprise fund will be used to liquidate these
liabilities.
The following is a summary of the net pension liabilities, deferred outflows and inflows of resources, and
pension expense reported for the PERA and FRA pension plans as of the year ended December 31,
2025:
Deferred Deferred
Net Pension Net Pension Outflows of Inflows of Pension
Pension Plan Asset Liability Resources Resources Expense
State-wide, mulit-
employer - PERA
Primary Government -$ 2,028,343$ 488,582$ 1,273,522$ (53,277)$
Component Unit - EDA - 66,880 15,700 42,291 10,511
Single-employer - FRA 292,967 - 571,267 456,057 257,876
292,967$ 2,095,223$ 1,075,549$ 1,771,870$ 215,110$
R. Other Post-Employment Benefits (OPEB) Liability
The city provides post-employment insurance benefits to certain eligible employees through its OPEB
Plan, a single-employer defined benefit plan administered by the city.
S. Deferred Inflows of Resources
In addition to liabilities, the Statement of Net Position and/or balance sheet will sometimes report a
separate section for deferred inflows of resources. This separate financial statement element represents
an acquisition of net assets that applies to future periods and so will not be recognized as an inflow of
resources (revenue) until that time.
The city has four types of items that qualify for reporting in this category. First, deferred other post-
employment benefits and pension resources, which arise under a full-accrual basis of accounting, is
reported only in the Statement of Net Position. These amounts are the result of actuarial calculations
involving net differences between expected and actual economic experience, changes in actuarial
assumptions, net differences between projected and actuarial earnings, and changes in proportion and
are deferred and recognized as an inflow of resources in accordance with actuarial calculations. Second,
deferred state aid and grants is reported. This amount is the result of an advance of state aid allocated
to future periods. Third, unavailable revenue, which arises under the modified accrual basis of accounting,
is reported in the governmental funds balance sheet. Governmental funds report unavailable revenue
from three sources: property taxes, special assessments, and state aid and grants.
44
Notes to the Financial Statements CITY OF MONTICELLO
These amounts are deferred and recognized as an inflow of resources in the period the amounts become
available or are allocated to the city. Fourth, deferred lease resources are reported in both the fund
financial statements and the statement of net position and result from present value calculations related
to the lease receivable.
T. Net Position
In the government-wide and proprietary fund financial statements, net position represents the difference
between assets and deferred outflows of resources, and liabilities and deferred inflows of resources. Net
position is displayed in three components:
• Net investment in capital assets – Consists of capital assets, net of accumulated depreciation,
reduced by any outstanding debt attributable to acquire capital assets.
• Restricted net position – Consists of net position restricted when there are limitations imposed
on their use through external restrictions imposed by creditors, grantors, or laws or regulations
of other governments.
• Unrestricted net position – All other net position that does not meet the definition of “net
investment in capital assets” or “restricted.”
U. Fund Balance Classifications
In the fund financial statements, governmental funds report fund balance in classifications that disclose
constraints for which amounts in those funds can be spent. These classifications are as follows:
• Nonspendable – Consists of amounts that are not in spendable form, such as prepaid items,
inventory, and other long-term assets.
• Restricted – Consists of amounts related to externally imposed constraints established by
creditors, grantors, or contributors; or constraints imposed by state statutory provisions.
• Committed – Consists of internally imposed constraints that are established by resolution by the
city council, which is the city’s highest level of decision-making authority. Those committed
amounts cannot be used for any other purpose unless the city council modifies or rescinds the
commitment by resolution.
• Assigned – Consists of internally imposed constraints. These constraints consist of amounts
intended to be used by the city for specific purposes but do not meet the criteria to be classified
as restricted or committed. In governmental funds, assigned amounts represent intended uses
established by the governing body itself or by an official to which the governing body delegates
the authority. Pursuant to city council resolution, the council, city administrator, or finance director
are authorized to establish assignments of fund balance.
• Unassigned – The residual classification for the General Fund which also reflects negative
residual amounts in other funds.
When both restricted and unrestricted resources are available for use, it is the city’s policy to first use
restricted resources, then use unrestricted resources as they are needed. When committed, assigned, or
unassigned resources are available for use, it is the city’s policy to use resources in the following order:
1) committed, 2) assigned, and 3) unassigned.
V. Budget
Budgets for the General Fund and all special revenue funds are adopted on a basis consistent with
accounting principles generally accepted in the United States of America. Reported budget amounts are
as originally adopted or as amended by the city council-approved supplemental appropriations and
budget transfers. No budget amendments were adopted during the year. Budget appropriations lapse at
year-end. The legal level of budgetary control is at the fund level in the General Fund and in the major
special revenue fund.
W. Use of Estimates
The preparation of financial statements in conformity with accounting principles generally accepted in the
United States of America requires management to make estimates and assumptions that affect the
reported amounts of assets, liabilities, and deferred outflows/inflows and disclosure of contingent assets,
liabilities, and deferred outflows/inflows at the date of the financial statements and the reported amounts
45
Notes to the Financial Statements CITY OF MONTICELLO
of revenues and expenses/expenditures during the reporting period. Actual results could differ from those
estimates.
NOTE 2. CASH, CASH EQUIVALENTS, AND INVESTMENTS
A. Components of Cash and Investments
Cash and investments at year-end consist of the following:
Total
Primary Component Reporting
Government Unit - EDA Entity
Deposits 3,188,752$ 176,276$ 3,365,028$
Investments 59,406,131 3,291,633 62,697,764
Cash on hand 8,345 - 8,345
Total cash and investments – Statement of Net Position 62,603,228$ 3,467,909$ 66,071,137$
B. Deposits
In accordance with applicable Minnesota Statutes, the city maintains deposits at depository banks
authorized by the city council, including checking accounts and non-negotiable certificates of deposit.
Custodial Credit Risk – In the case of deposits, this is the risk that in the event of a bank failure, the
city’s deposits may be lost and is considered the most significant risk associated with deposits.
Minnesota Statutes require that all deposits be protected by federal deposit insurance, corporate surety
bond, or collateral. The fair value of collateral pledged must equal 110% of the deposits not covered by
federal deposit insurance or corporate surety bonds. Authorized collateral includes treasury bills, notes,
and bonds; issues of U.S. government agencies; general obligations rated “A” or better; revenue
obligations rated “AA” or better; irrevocable standard letters of credit issued by the Federal Home Loan
Bank; and certificates of deposit. Minnesota Statutes require that securities pledged as collateral be held
in safekeeping in a restricted account at the Federal Reserve Bank or in an account at a trust department
of a commercial bank or other financial institution that is not owned or controlled by the financial institution
furnishing the collateral. The city’s investment policy does not provide further requirements regarding
custodial credit risk.
At year-end, the carrying amount of the city’s deposits, including the EDA, was $3,365,028 while the
balance on bank records was $3,909,719. All deposits were covered by federal depository insurance,
surety bonds, or by collateral held by the city’s agent in the city’s name. The primary government and the
EDA component unit deposits and investments are pooled.
C. Investments
Custodial Credit Risk – For investments, this is the risk that in the event of a failure of the counterparty
to an investment transaction (typically a broker-dealer) the city would not be able to recover the value of
its investments or collateral securities that are in the possession of an outside party. The city’s investment
policy does not provide additional requirements beyond state statutes, but the city typically limits its
exposure by purchasing insured or registered investments, or by the control of who holds the securities.
Credit Risk – This is the risk that an issuer or other counterparty to an investment will not fulfill its
obligations. Minnesota Statutes limit the city’s investments to direct obligations or obligations
guaranteed by the United States or its agencies; shares of investment companies registered under the
Federal Investment Company Act of 1940 that receive the highest credit rating, are rated in one of the
two highest rating categories by a statistical rating agency, and all of the investments have a final
maturity of 13 months or less; general obligations rated “A” or better; revenue obligations rated “AA” or
better; general obligations of the Minnesota Housing Finance Agency rated “A” or better; bankers’
acceptances of United States banks eligible for purchase by the Federal Reserve System; commercial
paper issued by United States corporations or their Canadian subsidiaries, rated of the highest quality
category by at least two nationally recognized rating agencies, and maturing in 270 days or less;
Guaranteed Investment Contracts guaranteed by a United States commercial bank, domestic branch of
a foreign bank, or a United States insurance company, and with a credit quality in one of the top two
46
Notes to the Financial Statements CITY OF MONTICELLO
highest categories; repurchase or reverse purchase agreements and securities lending agreements with
financial institutions qualified as a “depository” by the government entity, with banks that are members of
the Federal Reserve System with capitalization exceeding $10,000,000; that are a primary reporting
dealer in U.S. government securities to the Federal Reserve Bank of New York; or certain Minnesota
securities broker-dealers. The city’s investment policy does not further address credit risk.
Concentration Risk – This is the risk associated with investing a significant portion of the city’s
investment (5% or more) in the securities of a single issuer, excluding U.S. guaranteed investments (such
as treasuries), investment pools, and mutual funds. The city’s investment policy requires that no more
than 5% of the overall portfolio may be invested in the securities of a single issuer, except for the
securities of the U.S. government and in agencies or an external investment pool. Other than the federal
government, no single issuer held more than 5% of the city’s total investments as of December 31, 2025.
Interest Rate Risk – This is the risk of potential variability in the fair value of fixed rate investments
resulting from changes in interest rates (the longer the period for which an interest rate is fixed, the greater
the risk). The city’s investment policy does not further address the duration of investments.
The Minnesota Municipal Money Market Fund (4M Fund) is a common-law trust organized in accordance
with the Minnesota Joint Powers Act, which invests only in investment instruments allowable under
Minnesota Statutes. It is an external investment pool regulated by Minnesota statutes and the Board of
Directors of the League of Minnesota Cities. The 4M Fund is not registered with the Securities Exchange
Commission (SEC), but it follows the same regulatory rules of the SEC. The fair value of the city’s position
in the pool is the same as the value of the pool shares. The 4M Fund does not have any restrictions on
participant withdrawals. The city’s investment in the 4M Fund is measured at the net asset value per
share provided by the pool, which is based on an amortized cost method that approximates fair value.
The city’s cash management and investment policy complies with all statutory requirements.
Fair Value
Measurements Less More Percent of
Rating Agency Using Than 1 1 to 5 5 to 10 Than 10 Total Holdings
U.S Treasury Note N/A S&P Level 1 -$ -$ 1,509,720$ -$ 1,509,720$ 2.4%
U.S. agency securities
Federal Farm Credit Bank AA+ S&P Level 2 519,293 562,137 1,357,321 - 2,438,751 3.9%
Federal Farm Credit Bank AAA Moody's Level 2 - 280,338 - - 280,338 0.4%
Federal Agriculture Mortgage
Corporation N/R N/A Level 2 - 636,260 332,014 - 968,274 1.5%
Federal Home Loan Bank AA+ S&P Level 2 254,240 1,455,026 522,830 - 2,232,096 3.6%
Federal Home Loan Bank AAA Moody's Level 2 - - - 308,865 308,865 0.5%
Negotiable certificates of deposit N/R N/A Level 2 3,268,021 14,259,125 924,764 249,102 18,701,012 29.9%
Local government securities AAA S&P Level 2 - 265,676 1,382,861 1,377,604 3,026,141 4.8%
Local government securities AA+ S&P Level 2 - 1,030,026 711,263 4,640,302 6,381,591 10.2%
Local government securities AA S&P Level 2 - - - - - 0.0%
Local government securities Aaa Moody’s Level 2 - 1,126,104 1,239,382 1,618,516 3,984,002 6.4%
Local government securities Aa Moody’s Level 2 - - 335,723 502,150 837,873 1.3%
Investment pools and mutual funds N/R N/A Amortized Cost 21,712,170 - - - 21,712,170 34.5%
Investment pools and mutual funds AAA S&P Amortized Cost 316,931 - - - 316,931 0.5%
Total investments 26,070,655$ 19,614,692$ 8,315,878$ 8,696,539$ 62,697,764$ 100.0%
N/R – Not Rated
Credit Risk Interest Risk - Maturity Duration in Years
Investment Type
D. Cash on Hand
Cash on hand consists of cash in the possession of the city, including petty cash and change funds.
47
Notes to the Financial Statements CITY OF MONTICELLO
NOTE 3. LEASE RECEIVABLE
The city had the following leases receivable as of December 31, 2025:
Current Year
Issue Maturity Inflow of Balance at
Date Date Resources Year End
Antenna Lease Agreements
Great River Soccer Club - Building Space 08/24/21 05/31/26 1.80 %14,124$ 5,859$
Verizon Wireless - Monopole Antenna 04/01/23 03/31/68 2.83 25,800 1,362,006
Verizon Wireless - Water Tower Antenna 05/01/17 05/01/44 1.80 28,528 595,418
Total Lease Receivable 1,963,283$
Discount
Description Rate
The city leases building space located at 101 Chelsea Road in Monticello to the Great River Soccer club
at the above terms. The lease of this former bowling alley is for recreational soccer practice use.
The city leases monopole and water tower space to Verizon Wireless to provide for the use of city property
to operate and maintain communication equipment. The monopole agreement was amended in 2023 as
shown above.
48
Notes to the Financial Statements CITY OF MONTICELLO
NOTE 4. CAPITAL ASSETS
Capital asset activities for the year ended December 31, 2025 are as follows:
January 1,Transfers and December 31,
Beginning Completed Ending
Balance Additions Deletions Construction BalanceGovernmental activities
Nondepreciable capital assets
Land 17,359,078$ -$ -$ (55,014)$ 17,304,064$
Construction in progress 17,999,839 6,096,970 - (20,298,427) 3,798,382
Total capital assets, not depreciated 35,358,917 6,096,970 - (20,353,441) 21,102,446
Depreciable capital assets
Buildings and systems 109,551,447 1,926,050 - 20,298,427 131,775,924
Machinery and equipment 11,320,218 641,097 (81,201) - 11,880,114
Total capital assets, depreciated 120,871,665 2,567,147 (81,201) 20,298,427 143,656,038
Less accumulated depreciation for
Buildings and systems (64,297,695) (3,442,330) - - (67,740,025)
Machinery and equipment (5,472,461) (810,125) 24,383 - (6,258,203)
Total accumulated depreciation (69,770,156) (4,252,455) 24,383 - (73,998,228)
Net capital assets, depreciated 51,101,509 (1,685,308) (56,818) 20,298,427 69,657,810
Total governmental activities 86,460,426$ 4,411,662$ (56,818)$ (55,014)$ 90,760,256$
Business-type activities
Nondepreciable capital assets
Land 867,010$ -$ -$ 55,014$ 922,024$
Construction in progress 484,514 1,170,476 (19,512) - 1,635,478
Total capital assets, not depreciated 1,351,524 1,170,476 (19,512) 55,014 2,557,502
Depreciable capital assets
Buildings and systems 108,994,388 2,352,516 - - 111,346,904
Machinery and equipment 3,651,708 75,505 - - 3,727,213
Total capital assets, depreciated 112,646,096 2,428,021 - - 115,074,117
Less accumulated depreciation for
Buildings and systems (72,607,192) (2,462,973) - - (75,070,165)
Machinery and equipment (2,380,043) (132,258) - - (2,512,301)
Total accumulated depreciation (74,987,235) (2,595,231) - - (77,582,466)
Net capital assets, depreciated 37,658,861 (167,210) - - 37,491,651
Total business-type activities 39,010,385$ 1,003,266$ (19,512)$ 55,014$ 40,049,153$
49
Notes to the Financial Statements CITY OF MONTICELLO
Governmental activities
General government 37,231$
Public safety 290,787
Public works 2,630,441
Recreation and culture 648,639
Capital assets held by the City’s internal service funds –
charged to the various functions based on usage of assets 645,357
Total depreciation expense – governmental activities 4,252,455$
Business-type activities
Water 505,042$
Sewer 1,195,753
Stormwater 446,419
Liquor 19,539
Fiber Optics 394,507
Deputy Registrar 33,971
Total depreciation expense – business-type activities $ 2,595,231
NOTE 5. COMMITMENTS
The city has awarded contracts for various improvement projects. The city’s commitments for
uncompleted work on these contracts as of December 31, 2025 are as follows:
Amount
Contract Paid Remaining
Fund Project Description Amount To-Date 12/31/2024
Capital Projects Downtown Roadway & Pedestrian Improvement Project 11,119,842$ 10,486,966$ 632,876$
7th St Retaining Wall & Sidewalk Project 2,840,173 2,743,626 96,547
School Boulevard Improvement Project 3,198,357 3,102,190 96,167
CSAH Trail and Roadway Rehabilitation Project 1,875,766 1,713,830 161,936
$ 19,034,138 $ 18,046,612 $ 987,526
In 2019, the city entered into an investment agreement with Novel Solar LLC (Novel) at various solar
farms. The city pays Novel $0.119 per kilowatt-hour (kWh) generated. Novel then sells the produced solar
energy to Xcel Energy, and, in return, the city receives an energy credit on its monthly electric bills from
Xcel Energy. The energy credit varies based on market value of solar electricity. Payments on the contract
began in 2020, but amounts vary each month based on kilowatt-hours produced.
Additionally, the city entered into a solar investment contract with Nokomis Energy in 2022 which operates
in a similar manner as the Novel agreements except the city pays $0.01/kWh less than the energy credit
on the monthly electric bills from Xcel Energy. Payment on this contract began in 2023.
NOTE 6. LONG-TERM LIABILITIES
A.Description
The city has the following types of long-term liabilities outstanding as of December 31, 2025:
•General Obligation Bonds – The general obligation bond issues financed construction of a new
fire station and capital equipment purchases in the Capital Projects Funds.
•Special Assessment Bonds – These bonds are payable primarily from special assessments
levied on the properties benefiting from the improvements funded by these issues. Any
deficiencies in revenue to fund these issues will be provided from general property taxes.
•Tax Abatement Bonds – The principal balances on these bonds are payable primarily from a
special tax abatement levy, and interest is paid from general property taxes.
50
Depreciation for the year ended December 31, 2025 was charged to functions/programs as follows:
Notes to the Financial Statements CITY OF MONTICELLO
•General Obligation Revenue Bonds – The outstanding general obligation revenue bond
financed improvements to the city’s sewer system. They will be repaid from revenues pledged
and are backed by the taxing power of the city. Total operating revenues were $3,367,698 and
principal and interest payments were $243,600 for a percentage of revenues of 7.2%.
•Public Facilities Authority General Obligation (G.O.) Revenue Note – This note was issued
for improvements to the wastewater treatment plant and is payable primarily from user fees which
benefit from the improvements.
•Compensated Absences – The city provides vacation and sick or paid-time-off (PTO) leave
benefits to eligible employees. The liability will be repaid by the Benefit Accrual fund or respective
enterprise fund for which each employee is employed.
Long-term liabilities at year-end are summarized as follows:
Final
Original Interest Maturity Balance –
Issue Rate % Issue Date Date End of Year
Governmental activities
General obligation bonds
2019A General obligation bonds
CIP portion 5,350,000$ 2.00 - 2.30 %09/18/2019 12/15/2034 3,415,000$
equipment portion 1,290,000 2.00 09/18/2019 12/15/2028 460,000
Special assessments bonds
2015B General obligation bonds 2,605,000 1.50 - 3.00 11/01/2015 12/15/2030 975,000
2016A General obligation bonds 4,900,000 2.00 - 3.00 11/15/2016 12/15/2030 755,000
2017A General obligation bonds 2,040,000 2.00 - 2.50 10/24/2017 12/15/2027 445,000
2019A General obligation bonds 320,000 2.00 09/18/2019 12/15/2028 115,000
2020A General obligation bonds 2,155,000 0.45 - 2.00 09/09/2020 12/15/2030 1,125,000
Tax abatement bonds
2017A General obligation bonds 2,960,000 2.00 - 3.00 10/24/2017 12/15/2032 1,515,000
2018A General obligation bonds 5,000,000 3.00 - 3.38 10/23/2018 12/15/2032 2,770,000
2019A General obligation bonds 1,040,000 2.00 - 2.20 09/18/2019 12/15/2032 595,000
Compensated absences payable 377,242
Total governmental activities 12,547,242$
Business-type activities
General obligation revenue bonds
2013B Wastewater treatment bonds 3,000,000$ 2.00 - 3.35 %12/01/2013 12/01/2028 695,000$
Public Facilities Authority G.O.
Sewer revenue note (2015A)2,214,632 1.06 08/26/2015 08/20/2035 1,161,000
Compensated absences payable 115,381
Total business-type activities 1,971,381$
51
Notes to the Financial Statements CITY OF MONTICELLO
B.Changes in Long-Term Liabilities
January 1,December 31, Due Within
2025 Additions Retirements 2025 One Year
Governmental activities
General obligation bonds 4,365,000$ -$ (490,000)$ 3,875,000$ 500,000$
Special assessment bonds 4,560,000 - (1,145,000) 3,415,000 1,165,000
Tax abatement bonds 5,505,000 - (625,000) 4,880,000 640,000
Compensated absences*357,457 19,785 - 377,242 316,521
Total governmental activities 14,787,457$ 19,785$ (2,260,000)$ 12,547,242$ 2,621,521$
Business-type activities
General obligation
revenue bonds 910,000$ -$ (215,000)$ 695,000$ 225,000$
PFA revenue note 1,270,000 - (109,000) 1,161,000 111,000
Compensated absences*92,110 23,271 - 115,381 97,249
Total business-type activities 2,272,110$ 23,271$ (324,000)$ 1,971,381$ 433,249$
Component Unit activities
Compensated absences*16,046$ 10,801$ (10,236)$ 16,611$ 14,950$
*The change in compensated absences liability is presented as a net change.
C.Minimum Debt Payments
Minimum annual principal and interest payments to maturity for bonds payable are as follows:
Year Ending
December 31,Principal Interest Principal Interest Principal Interest Principal Interest Principal Interest
2026 500,000$ 80,918$ 1,165,000$ 77,150$ 640,000$ 139,973$ 225,000$ 22,150$ 111,000$ 12,341$
2027 510,000 70,918 730,000 51,825 655,000 122,573 230,000 15,400 112,000 11,162
2028 520,000 60,718 520,000 33,650 680,000 104,748 240,000 8,040 113,000 9,971
2029 370,000 50,318 490,000 20,700 695,000 86,248 - - 114,000 8,770
2030 380,000 42,918 510,000 10,600 710,000 67,108 - - 115,000 7,558
2031 - 2035 1,595,000 90,523 - - 1,500,000 69,863 - - 596,000 19,134
3,875,000$ 396,313$ 3,415,000$ 193,925$ 4,880,000$ 590,513$ 695,000$ 45,590$ 1,161,000$ 68,936$
Business-Type Activities
PFA Revenue Note
Governmental Activities
General Obligation BondsGeneral Obligation Bonds Tax Abatement Bonds
Special
Assessment Bonds
D.Legal Debt Margin
Under Minnesota State Statutes, the general obligation bonded debt issued by the city is subject to a
legal debt limitation based on 3 percent of market value. As of December 31, 2025, the city’s legal debt
margin was $79,694,148. The statutes provide that debt issues supported by tax increment, special
assessment revenues or available dedicated reserves are excluded from the total limited debt.
E.Conduit Debt
From time to time, the city has issued bonds or notes to provide financial assistance to private sector
entities for the acquisition and construction of housing or commercial facilities deemed to be in the public
interest. The bonds or notes are secured by the property financed and are payable solely from payments
received on the underlying mortgage loans or leases. Upon repayment of the bonds, ownership of the
acquired facilities transfers to the private sector entity served by the bond issuance. The city is not
obligated in any manner for repayment of the bonds or notes. Accordingly, the bonds are not reported as
liabilities in the accompanying financial statements. No new conduit debt was issued in 2025.
Entity Description Iss ue Date Original Issue Current Balance
Swan River 2017A and 2017B Educational
Facilities Revenue Notes 10/2/2017 2,225,000$ 1,517,001$
52
Notes to the Financial Statements CITY OF MONTICELLO
F. Pay-As-You-Go Tax Increment Notes
The city, in order to spur economic development and redevelopment, has entered into private
development and redevelopment agreements to encourage developers to construct, expand, or improve
new or existing properties and buildings or clean-up and redevelop blighted areas. These agreements
may in substance be a tax abatement but will depend on their individual circumstances.
G. Abatements
The city is authorized to create a tax increment financing plan under Minnesota Statute 469.175. The
criteria that must be met under the statute are that, in the opinion of the municipality:
• the proposed development or redevelopment would not reasonably be expected to occur solely
through private investment within the reasonably foreseeable future; and
• the increased market value of the site that could reasonably be expected to occur without the
use of tax increment financing would be less than the increase in the market value estimated to
result from the proposed development after subtracting the present value of the projected tax
increments for the maximum duration of the district permitted by the plan. The requirements of
this item do not apply if the district is a housing district;
• that the tax increment financing plan conforms to the general plan for the development or
redevelopment of the municipality as a whole; and
• that the tax increment financing plan will afford maximum opportunity, consistent with the sound
needs of the municipality as a whole, for the development or redevelopment of the project by
private enterprise.
The city has a development agreement with a private developer for a property in a city tax increment
district. As part of the agreement, the city has agreed to reimburse the developer for certain costs through
a pay-as-you-go tax increment note.
This note provides for the payment of principal equal to the developer’s costs, plus interest at a rate of
5.5% (interest accrual commencing at date of original issue). Payments of the note will be made at the
lesser of the scheduled note payment or the actual net tax increment received during the period specified
in the agreement. The note, classified as an abatement, will be canceled at the end of the agreement
term, whether it has been fully repaid or not.
The city currently has one agreement that would be considered tax abatements under GASB Statement
77. The outstanding principal balance as of December 31, 2025 is listed in the following table. This note
is not included in the city’s long-term debt, because repayment is required only to the extent sufficient tax
increments are received. The city’s position is that this is an obligation to assign future and uncertain
revenue sources and is not actual debt in substance.
Name Purpose
1-40 Briggs 47-unit rental housing facility
with affordability component
Amount of
taxes abated
during the
1-45 Block 52
Outstanding
principal balance
at y ear-end
Date of
required
dec ertification
75,525$ 718,763$ 12/31/2045
Redevelopment of central
block in the downtown area 222,582$ 4,219,571$ 12/31/2050
1-46 WiHa Manufacturer of hand tools 56,247$ 560,825$ 12/31/2032
H. Arbitrage Rebate
In accordance with the provisions of Section 148(f) of the Internal Revenue Code of 1986, as amended,
bonds must satisfy certain arbitrage rebate requirements. Positive arbitrage is the excess of (1) the
amount earned on investments purchased with bond proceeds over (2) the amount that such investments
would have earned had such investments been invested at a rate equal to the yield on the bond issue.
To comply with the arbitrage rebates requirements, positive arbitrage must be paid to the U.S. treasury
53
Notes to the Financial Statements CITY OF MONTICELLO
at the end of each five-year anniversary date of the bond issue. As of December 31, 2025, there are no
arbitrage rebates owed.
I. Revenue Pledged
Future revenue pledged for the payment of long-term debt is as follows:
2013B G.O.
Wastewater
Treatment Bonds PFA Note
Use of proceeds Sewer Fund Sewer Fund
Revenue pledged
Type Utility charges Utility charges
Percent of total debt service 38%62%
Term of pledge 2013-2028 2015-2035
Remaining principal & interest 740,590$ 1,229,936$
Current year
Principal and interest paid 243,600$ 122,500$
Pledged revenue received 1,279,725$ 2,087,973$
Description
NOTE 7. DEFINED BENEFIT PENSION PLANS – STATE-WIDE
A. Plan Description
The city participates in the following cost-sharing multiple-employer defined benefit pension plans
administered by the Public Employees Retirement Association of Minnesota (PERA). These plan
provisions are established and administered according to Minnesota Statutes chapters 353, 353D, 353E,
353G, and 356. Minnesota Statutes chapter 356 defines each plan’s financial reporting requirements.
PERA’s defined benefit pension plans are tax qualified plans under Section 401(a) of the Internal
Revenue Code.
General Employees Retirement Fund (General Employees Plan)
Membership in the General Plan includes employees of counties, cities, townships, schools in non-
certified positions, and other governmental entities whose revenues are derived from taxation, fees, or
assessments. Plan membership is required for any employee who is expected to earn more than $425
in a month, unless the employee meets exclusion criteria.
B. Benefits Provided
PERA provides retirement, disability, and death benefits. Benefit provisions are established by state
statute and can only be modified by the state Legislature. Vested, terminated employees who are entitled
to benefits, but are not receiving them yet, are bound by the provisions in effect at the time they last
terminated their public service. When a member is “vested,” they have earned enough service credit to
receive a lifetime monthly benefit after leaving public service and reaching an eligible retirement age.
Members who retire at or over their Social Security full retirement age with at least one year of service
qualify for a retirement benefit.
General Employees Plan Benefits
General Employees Plan requires three years of service to vest. Benefits are based on a member’s
highest average salary for any five successive years of allowable service, age, and years of credit at
termination of service. Two methods are used to compute benefits for General Plan members. Members
hired prior to July 1, 1989, receive the higher of the Step or Level formulas. Only the Level formula is
used for members hired after June 30, 1989. Under the Step formula, General Plan members receive
1.2% of the highest average salary for each of the first 10 years of service and 1.7% for each additional
year. Under the Level formula, General Plan members receive 1.7% of highest average salary for all
years of service. For members hired prior to July 1, 1989 a full retirement benefit is available when age
plus years of service equal 90 and normal retirement age is 65. Members can receive a reduced
retirement benefit as early as age 55 if they have three or more years of service. Early retirement benefits
are reduced by 0.25% for each month under age 65. Members with 30 or more years of service can retire
at any age with a reduction of 0.25% for each month the member is younger than age 62. The Level
54
Notes to the Financial Statements CITY OF MONTICELLO
formula allows General Plan members to receive a full retirement benefit at age 65 if they were first hired
before July 1, 1989 or at age 66 if they were hired on or after July 1, 1989. Early retirement begins at age
55 with an actuarial reduction applied to the benefit.
Benefit increases are provided to benefit recipients each January. The postretirement increase is equal
to 50% of the cost-of-living adjustment (COLA) announced by the SSA, with a minimum increase of at
least 1% and a maximum of 1.5%. The 2025 annual increase was 1.25%. Recipients that have been
receiving the annuity or benefit for at least a full year as of the June 30 before the effective date of the
increase will receive the full increase. Recipients receiving the annuity or benefit for at least one month
but less than a full year as of the June 30 before the effective date of the increase will receive a prorated
increase.
C. Contributions
Minnesota Statutes chapters 353, 353E, 353G and 356 set the rates for employer and employee
contributions. Contribution rates can only be modified by the state Legislature.
General Employees Fund Contributions
Coordinated Plan members were required to contribute 6.50% of their annual covered salary in fiscal
year 2025, and the city was required to contribute 7.50% for Coordinated Plan members. The city’s
contributions to the General Employees Fund for the year ended December 31, 2025, were $443,615.
The city’s contributions were equal to the required contributions as set by state statute.
D. Pension Costs
General Employees Fund Pension Costs
As of December 31, 2025, the city reported a liability of $2,095,223 for its proportionate share of the
General Employees Fund’s net pension liability. Of that liability $2,028,343 was for the primary
government and $66,880 was for the EDA. The city’s net pension liability reflected a reduction due to
the State of Minnesota’s contribution of $16 million. The State of Minnesota is considered a non-employer
contributing entity and the state’s contribution meets the definition of a special funding situation. The
State of Minnesota’s proportionate share of the net pension liability associated with the city totaled
$50,543.
The net pension liability was measured as of June 30, 2025, and the total pension liability used to
calculate the net pension liability was determined by an actuarial valuation as of that date. The city’s
proportionate share of the net pension liability was based on the city’s contributions received by PERA
during the measurement period for employer payroll paid dates from July 1, 2024, through June 30, 2025,
relative to the total employer contributions received from all PERA’s participating employers. The city’s
proportionate share was 0.0632% at the end of the measurement period and 0.0632% for the beginning
of the period.
For the year ended December 31, 2025, the city recognized a negative expense of $38,913 for its
proportionate share of the General Employees Fund’s pension expense, and the EDA recognized $7,545.
In addition, the city recognized an additional negative $7,753 as pension expense (and grant revenue)
for its proportionate share of the State of Minnesota’s contribution of $16 million to the General Employees
Fund and $208 to the EDA’s Employees Fund’s.
As of December 31, 2025, the city reported its proportionate share of the General Employees Plan’s
deferred outflows of resources and deferred inflows of resources related to pensions from the following
sources:
55
Notes to the Financial Statements CITY OF MONTICELLO
Deferred Outflows Deferred Inflows Deferred Outflows Deferred Inflows
of Resources of Resources of Resources of Resources
Differences between expected and
actual economic experience 193,414$ -$ 6,215$ -$
Changes in actuarial assumptions 48,911 466,609 1,572 15,495
Net collective difference between
projected and actual investment earnings - 806,913 - 26,796
Changes in proportion 29,200 - 938 -
Contributions paid to PERA subsequent
to the measurement date 217,057 - 6,975 -
Total 488,582$ 1,273,522$ 15,700$ 42,291$
Primary Government Component Unit - EDA
$224,032 reported as deferred outflows of resources related to pensions resulting from the city and
component unit’s contributions subsequent to the measurement date will be recognized as a reduction of
the net pension liability in the year ended December 31, 2026.
Other amounts reported as deferred outflows and deferred inflows of resources related to pensions,
excluding the contributions subsequent to the measurement date, will be recognized in pension expense
as follows:
Year ended Primary Component
December 31,Government Unit - EDA
2026 (202,946)$ (6,799)$
2027 (377,633) (12,650)
2028 (277,314) (9,290)
2029 (144,104) (4,827)
(1,001,997)$ (33,566)$
E. Long-Term Expected Return on Investment
The State Board of Investment, which manages the investments of PERA, prepares an analysis of the
reasonableness on a regular basis of the long-term expected rate of return using a building-block method
in which best-estimate ranges of expected future rates of return are developed for each major asset class.
These ranges are combined to produce an expected long-term rate of return by weighting the expected
future rates of return by the target asset allocation percentages. The target allocation and best estimates
of geometric real rates of return for each major asset class are summarized in the following table:
Long-term
Target Expected Real
Allocation Rate of Return
Domestic stocks 33.5%5.10%
International stocks 16.5%5.30%
Bonds (fixed income)25.0%0.75%
Alternative assets (private markets)25.0%5.90%
Total 100.0%
Asset Class
F. Actuarial Methods and Assumptions
The total pension liability for each of the cost-sharing defined benefit plans was determined by an actuarial
valuation as of June 30, 2025, using the entry age normal actuarial cost method. The long-term rate of
return on pension plan investments used to determine the total liability is 7.0%. The 7.0% assumption is
based on a review of inflation and investment return assumptions from a number of national investment
consulting firms. The review provided a range of investment return rates considered reasonable by the
actuary. An investment return of 7.0% is within that range.
56
Notes to the Financial Statements CITY OF MONTICELLO
Inflation is assumed to be 2.25% for the General Employees Plan. Benefit increases after retirement are
assumed to be 1.50% for the General Employees Plan.
Salary growth assumptions in the General Employees Plan range in annual increments from 11.50% after
one year of service to 3.0% after 27 years of service.
Mortality rates for the General Employees Plan are based on the Pub-2010 General Employee Mortality
Table. The tables are adjusted slightly to fit PERA’s experience.
Actuarial assumptions for the General Employees Plan are reviewed every four years. The General
Employees Plan was last reviewed in 2022. The assumption changes were adopted by the board and
became effective with the July 1, 2023 actuarial valuation.
The following changes in actuarial assumptions and plan provisions occurred in 2025:
• Changes in Actuarial Assumptions:
o The combined service annuity loading factors increased from 15% to 19% for vested,
terminated members and from 3% to 44% for non-vested, terminated members.
• Changes in Plan Provisions:
o The post-retirement benefit increase formula changed to 100% of the Social Security
annual increase, between 1% and 1.75%, beginning January 1, 2026. If the funded
ratio (on a market value of assets basis) is less than 85% for the last two consecutive
annual valuations or is less than 80% in the most recent actuarial valuation, the
maximum is reduced to 1.5%. Previously, the benefit increase was 50% of the Social
Security annual increase, between 1% and 1.5%.
o The 1% additional employer contribution is eliminated when the plan reaches 98%
funded status (on an actuarial value of assets basis); this contribution was previously
scheduled to stop when the plan reached 100% funded status.
G. Discount Rate
The discount rate used to measure the total pension liability in 2025 was 7.0%. The projection of cash
flows used to determine the discount rate assumed that contributions from plan members and employers
will be made at rates set in Minnesota Statutes. Based on these assumptions, the fiduciary net position
of the General Employees was projected to be available to make all projected future benefit payments of
current plan members. Therefore, the long-term expected rate of return on pension plan investments was
applied to all periods of projected benefit payments to determine the total pension liability.
H. Pension Liability Sensitivity
The following presents the city’s proportionate share of the net pension liability for all plans it participates
in, calculated using the discount rate disclosed in the preceding paragraph, as well as what the city’s
proportionate share of the net pension liability would be if it were calculated using a discount rate one
percentage point lower or one percentage point higher than the current discount rate:
1% Decrease Discount 1% Increase
(6.0%)Rate (7.0%)(8.0%)
General Employees Fund
Primary Government 4,926,528$ 2,028,343$ (322,736)$
Component Unit - EDA 162,441 66,880 (10,642)
Total 5,088,969$ 2,095,223$ (333,378)$
City Proportionate Share of NPL
I. Pension Plan Fiduciary Net Position
Detailed information about the General Employees Fund pension plan’s fiduciary net position is available
in a separately issued PERA financial report that includes financial statements and required
supplementary information. That report may be obtained on the Internet at www.mnpera.org.
57
Notes to the Financial Statements CITY OF MONTICELLO
NOTE 8. PUBLIC EMPLOYEES DEFINED CONTRIBUTION PENSION PLANS
All council members of the city are covered by the Public Employees Defined Contribution Plan, a
multiple-employer deferred compensation plan administered by PERA. However, only three of the five
Council members choose to participate in the plan. The Defined Contribution Plan is a tax qualified plan
under Section 401(a) of the Internal Revenue Code and all contributions by or on behalf of employees
are tax deferred until time of withdrawal.
Plan benefits depend solely on amounts contributed to the plan plus investment earnings, less
administrative expenses. Minnesota Statutes, Chapter 353D.03, specifies plan provisions, including the
employee and employer contribution rates for those qualified personnel who elect to participate. An
eligible elected official who decides to participate contributes 5% of salary which is matched by the elected
official's employer. Employer and employee contributions are combined and used to purchase shares in
one or more of the seven accounts of the Minnesota Supplemental Investment Fund. For administering
the plan, PERA receives 2% of employer contributions and twenty-five hundredths of 1% (0.25%) of the
assets in each member's account annually.
Total contributions made by the city during fiscal year 2025 were:
Required
Employee Em ployer Employee Employer Rate
1,080$ 1,080$ 5.00% 5.00% 5.00%
Contribution Amount % of Covered Payroll
NOTE 9. DEFINED BENEFIT PENSION PLAN - MONTICELLO FIRE RELIEF ASSOCIATION
A. Plan Description
All members of the Monticello Fire Department (the Department) are covered by a defined benefit plan
administered by the Monticello Fire Relief Association (the Association). As of December 31, 2025, the
plan covered 30 active firefighters and 3 retirees and beneficiaries. The plan is a single-employer
retirement plan that is established and administered in accordance with Minnesota statute, chapter 69.
The Association maintains a separate Special fund to accumulate assets to fund the retirement benefits
earned by the Department’s membership. Funding for the Association is derived from voluntary
contributions from the city and 2% fire aid from the State of Minnesota, as well as from investment income.
B. Benefits Provided
Upon approval by the Board of Trustees, lump sum retirement benefits are paid or deferred as follows:
Each member who is at least 50 years of age, has retired from the fire department, has served at
least 10 years of active service with such department before retirement and has been a member of
the Association in good standing at least 10 years prior to such retirement, shall be entitled to a lump
sum service pension in the amount of $5,600 for each year of service but not exceeding the maximum
amount per year of service allowed by law for the minimum average amount of available financing
per firefighter as prescribed by laws. A year of service may be prorated to twelve monthly slices if a
full year of active service is not reached.
If a member of the Association shall become permanently and totally disabled, the Association shall
pay the sum of $5,600 for each year the member was an active member of the Association. If a
member who received a disability pension subsequently recovers and returns to active duty, the
disability pension is deducted from the service pension as approved by the Board of Trustees.
According to the bylaws of the Association and pursuant to Minnesota Statutes, members who retire
with less than 20 years of service and have reached the age of 50 years and have completed at least
10 years of active membership are entitled to a reduced service pension not to exceed the amount
calculated by multiplying the member’s service pension for the completed years of service times an
applicable nonforfeitable percentage.
During the time a member is on deferred vested pension (not yet reached age 50), they will earn
interest on the deferred benefit amount at a rate determined by the Board of Trustees, up to 5%,
compounded annually. A deferred vested member will not be eligible for disability benefits.
58
Notes to the Financial Statements CITY OF MONTICELLO
C.Contributions
Minnesota statutes, chapters 424 and 424A authorize pension benefits for volunteer fire relief
associations. Contributions by the city are determined as follows:
•Normal cost for next year (increase in pension benefit obligation)
•Plus, estimated expenses for next year and 10% of any deficits
•Less anticipated income next year and 10% of any surplus
The plan is funded by fire state aid, investment earnings and, if necessary, employer contributions as
specified in Minnesota statutes and voluntary city contributions (if applicable). The State of Minnesota
contributed $211,386 in fire state aid to the plan on behalf of the city fire department for the year ended
December 31, 2025, which was recorded as a deferred outflow of resources because the city records the
FRA pension activity as of December 31, 2025. Required employer contributions are calculated annually
based on statutory provisions. The city’s statutorily required contributions to the plan for the year ended
December 31, 2025 were $211,386. The city’s contributions were equal to the required contributions as
set by state statute. The city made no voluntary contributions to the plan. Furthermore, the members
have no obligation to contribute to the plan.
D.Actuarial Assumptions
The total pension liability as of December 31, 2025 was determined using the entry age cost method and
the following assumptions: retirement eligibility at 100% service pension at age 50 and 20 years of
service, early vested retirement at age 50 with 10 years of service vested at 60% and increased by 4%
for each additional year of service up to 20 and eligibility for deferred service pension payable at age 50
and 20 years of service.
Benefit increases 2.00% per year
Cost of living increases 2.70% per year
Investment rate of return 4.72%
Fidelity Corporate Bond AA Index 4.87%
E. Pension Costs
As of December 31, 2025, the city reported a net pension asset of $292,967 for the FRA plan. The total
pension asset used to calculate the net pension asset in accordance with GASB 68 was determined by
Robinson Associates LLC applying an actuarial formula to specific census data certified by the fire
department as of December 31, 2025. For the year ended December 31, 2025, the Fire Department
recognized a pension expense of $211,386.
As of December 31, 2025, the city reported deferred outflows/inflows of resources as follows:
Deferred Deferred
Outflo ws Inflows
of Resources of Resources
Differences between expected and
actual economic experience 209,826$ 314,820$
Changes in actuarial assumptions 34,427 32,957
Net difference between projected
and actual investment earnings 115,628 108,280
Contributions paid to FRA subsequent
to the measurement date 211,386 -
571,267$ 456,057$
59
$211,283 reported as deferred outflows of resources resulting from contributions subsequent to the
measurement date will be recognized as a reduction of the pension liability in the year ended December
31, 2026.
Notes to the Financial Statements CITY OF MONTICELLO
Amounts reported as deferred outflows and inflows of resources related to pensions will be recognized
in pension expense as follows:
Pension
Year ended Expense
December 31,Amount
2025 6,494$
2026 17,619
2027 (40,197)
2028 (18,950)
2029 (6,506)
Thereafter (54,636)
(96,176)$
The 4.72% long-term expected rate of return on pension plan investments was determined using a
building-block method in which best estimates for expected future real rates of return (expected returns,
net of inflation) were developed for each asset class using the plan’s target investment allocation along
with long-term return expectations by asset class. Inflation expectations were applied to derive the
nominal rate of return for the portfolio.
The target allocation and best estimates of arithmetic real rates of return for each major asset class are
summarized in the following table:
Long-term
Target Expected Real
Allocation Rate of Return
Cash 1.2%-0.02%
Mutual funds 98.8%2.95%
100.0%
Asset Class
F. Changes in the Net Pension Liability (Asset)
Total Plan Net Pension
Pension Fiduciary Liability
Liability (TPL) Net Position (Asset)
(a)(b)(a-b)
Beginning balance 12/31/2024 1,359,149$ 1,550,728$ (191,579)$
Changes for the year
Service cost 93,645 - 93,645
Interest on total pension liability 64,921 - 64,921
Change in TPL due to changes in
benefit terms - - -
Differences between actual and expected
experience in measurement of TPL 34,077 - 34,077
Contributions from employer - 181,117 (181,117)
Supplemental benefits reimbursed - 2,000 (2,000)
Net investment income - 117,643 (117,643)
Benefit payments (61,044) (61,044) -
Administrative expenses - (6,729) 6,729
Ending balance 12/31/2024 1,490,748$ 1,783,715$ (292,967)$
60
Notes to the Financial Statements CITY OF MONTICELLO
G. Discount Rate
The discount rate used to measure the total pension liability was 4.72%. The projection of cash flows
used to determine the discount rate assumed that contributions to the FRA plan will be made as specified
in statute. Based on that assumption and considering the funding ratio of the plan, the fiduciary net
position was projected to be available to make all projected future benefit payments of current active and
inactive members. Therefore, the long-term expected rate of return on pension plan investments was
applied to all periods of projected benefit payments to determine the total pension liability.
H. Pension Asset Sensitivity
The following presents the city’s net pension (asset) for the FRA plan, calculated using the discount rate
disclosed in the preceding paragraph, as well as what the city’s net pension (asset) would be if it were
calculated using a discount rate 1 percentage point lower or 1 percentage point higher than the current
discount rate:
1% Decrease 1% Increase
In Discount Discount In Discount
Rate (3.72%) Rate (4.72%) Rate (5.72%)
Net Pension (Asset)(186,916)$ (292,967)$ (380,184)$
I. Pension Plan Fiduciary Net Position
The Association issues a publicly available financial report that includes financial statements and required
supplementary information. A copy of the report may be obtained at Monticello City Hall.
NOTE 10. OTHER POST-EMPLOYMENT BENEFITS (OPEB) PLAN
A. Plan Description
The city provides post-employment insurance benefits to certain eligible employees through its
OPEB Plan, a single-employer defined benefit plan administered by the city. All post-employment
benefits are based on contractual agreements with employee groups. Eligibility for these benefits is based
on years of service and/or minimum age requirements. These contractual agreements do not include any
specific contribution or funding requirements. The Retiree Health Plan does not issue a publicly available
financial report. No plan assets are accumulated in a trust that meets the criteria in paragraph 4 of GASB
Statement No. 75.
B. Benefits Provided
All retirees of the city upon retirement have the option under state law to continue their medical
insurance coverage through the city. For members of certain employee groups, the city pays for all or
part of the eligible retiree’s premiums for medical and/or dental insurance from the time of retirement
until the employee reaches the age of eligibility for Medicare. Benefits paid by the city differ by
bargaining unit and date of hire, with some contracts specifying a certain dollar amount per month, and
some covering premium costs as defined within each collective bargaining agreement. Retirees not
eligible for these city-paid premium benefits must pay the full city premium rate for their coverage.
The city is legally required to include any retirees for whom it provides health insurance coverage in the
same insurance pool as its active employees until the retiree reaches Medicare eligibility, whether the
premiums are paid by the city or the retiree. Consequently, participating retirees are considered to
receive a secondary benefit known as an “implicit rate subsidy.” This benefit relates to the assumption
that the retiree is receiving a more favorable premium rate than they would otherwise be able to obtain
if purchasing insurance on their own, due to being included in the same pool with the city’s younger and
statistically healthier active employees.
C. Contributions
The required contribution is based on projected pay-as-you-go financing requirements, with additional
amounts to prefund benefits as determined periodically by the city. The city’s current year required pay-
as-you-go contributions to finance the benefits described in the previous section totaled $11,133.
61
Notes to the Financial Statements CITY OF MONTICELLO
D. Membership
Membership in the plan consisted of the following as of the latest actuarial valuation:
Primary Component
Government Unit - EDA Total
Retirees and beneficiaries receiving benefits 1 - 1
Active plan members 43 1 44
Total members 44 1 45
E. Total OPEB Liability of the City
The city’s total OPEB liability of $106,956 as of year-end was measured as of January 1, 2025 and was
determined by an actuarial valuation as of January 1, 2025.
F. Actuarial Assumption
The total OPEB liability was determined by an actuarial valuation as of January 1, 2025, using the
following actuarial assumptions, applied to all periods included in the measurement, unless otherwise
specified:
Discount rate 2.00%
20-year municipal bond yield 2.00%
Inflation rate 2.00%
Salary increases 3.00%
6.5% grading to 5.0% over 6 years,
then to 4.0% over 48 yearsMedical trend rate
The actuarial assumptions used in the latest valuation were based on those used to value pension
liabilities for Minnesota city employees. The state pension plans base their assumptions on periodic
experience studies. Economic assumptions are based on input from a variety of published sources of
historical and projected future financial data. Each assumption was reviewed for reasonableness with the
source information as well as for consistency with the other economic assumptions.
Since the plan is not funded by an irrevocable trust, the discount rate is equal to the 20-year municipal
bond yield rate of 2.00%, which was set by considering published rate information for 20-year high quality,
tax-exempt, general obligation municipal bonds as of the measurement date.
Mortality rates were based on the Pub-2010 Public Retirement Plans General Headcount-Weighted
Mortality Tables with MP-2020 Generational Improvement Scale.
Future retirees electing coverage is assumed to be 50% with 30% of those electing family coverage.
G. Changes in the Total OPEB Liability
Primary Component Total OPEB
Government Unit - EDA Liability
Beginning balance 141,061$ 2,033$ 143,094$
Changes for the year
Service cost 7,956 1,009 8,965
Interest 5,745 117 5,862
Changes in assumptions (18,416) (376) (18,792)
Differences between expected and actual experience (20,619) (421) (21,040)
Benefit payments – employer financed (10,910) (223) (11,133)
(36,244) 106 (36,138)
Ending balance 104,817$ 2,139$ 106,956$
62
Notes to the Financial Statements CITY OF MONTICELLO
Assumption changes since the prior measurement date include the following:
• The health care trend rates were changed to better anticipate short term and long-term medical
increases.
• The retirement, withdrawal, and salary increase rates were updated to reflect the latest
experience study.
• The discount rate was changed from 4.00% to 4.20%.
• These changes decreased the liability $18,792.
H. Total OPEB Liability Sensitivity to Discount and Health-Care Cost Trend Rate Changes
The following presents the total OPEB liability of the city, as well as what the city’s total OPEB liability
would be if it were calculated using a discount rate that is 1 percentage point lower or 1 percentage point
higher than the current discount rate:
1% Decrease in Discount 1% Increase in
Discount Rate Rate Discount Rate
OPEB discount rate 1.00%2.00%3.00%
Primary Government $111,744 $104,817 $98,236
Component Unit - EDA $2,281 $2,139 $2,005
Discount Sensitivity
The following presents the total OPEB liability of the city, as well as what the city’s total OPEB liability
would be if it were calculated using healthcare cost trend rates that are 1 percentage point lower or 1
percentage point higher than the current healthcare cost trend rates:
1% Decrease in Healthcare Trend 1% Increase in
Healthcare Trend Rate Rate Healthcare Trend Rate
OPEB medical trend rate 5.25% decreasing to 6.25% decreasing to 7.25% decreasing to
4.00% over 5 years 5.00% over 5 years 6.00% over 5 years
Primary Government $94,780 $104,817 $116,501
Component Unit - EDA $1,934 $2,139 $2,378
I. OPEB Expense and Related Deferred Outflows of Resources and Deferred Inflows of
Resources
For the current year ended, the city recognized OPEB expense of ($27,748). As of year-end, the city
reported deferred outflows of resources and deferred inflows of resources related to OPEB from the
following sources:
Deferred Deferred Deferred Deferred
Outflows Inflows Outflows Inflows
of Resources of Resources of Resources of Resources
Liability gains 1,043$ 26,019$ 21$ 531$
Assumption changes 32 21,292 1 435
Benefit payments after the measurement date 9,455 - 193 -
Total 10,530$ 47,311$ 215$ 966$
Primary Government Component Unit - EDA
63
Notes to the Financial Statements CITY OF MONTICELLO
Amounts reported as deferred outflows and inflows of resources related to OPEB, excluding benefit
payments after the measurement date, will be recognized in OPEB expense as follows:
Year Ending Primary Component
December 31, Government Unit - EDA
2025 (14,697)$ (300)$
2026 (15,772) (322)
2027 (15,767) (322)
2028 - -
2028 - -
(46,236)$ (944)$
$9,648 reported as deferred outflows of resources resulting from city and component unit benefit
payments subsequent to the measurement date will be recognized as a reduction of the OPEB liability in
the year ended December 31, 2026.
NOTE 11. FUND BALANCES
As of December 31, 2025, a summary of the city’s governmental fund balance classifications are as
follows:
Component Unit
Total Economic
Community Debt Capital Local Option Nonmajor Governmental Development
General Center Service Projects Sales Tax Funds Funds Authority
Nonspendable
Prepaid items 248,115$ 39,404$ -$ -$ -$ 272$ 287,791$ 4,839$
Lease receivable 70,679 - - - - - 70,679 -
Total nonspendable 318,794 39,404 - - - 272 358,470 4,839
Restricted
Debt service - - 394,136 - - - 394,136 -
Economic development - - - - - 1,030,636 1,030,636 1,379,714
Cemetery maintenance - - - - - 231,669 231,669 -
Park improvements - - - - 1,820,306 175,000 1,995,306 -
Tax increment - - - - - - - 685,516
Total restricted - - 394,136 - 1,820,306 1,437,305 3,651,747 2,065,230
Assigned
Capital improvements - - - 9,138,301 - 1,233,064 10,371,365 -
Economic development - - - - - -- 4,643,412
Community center operations - 5,957 - - - -5,957 -
Total assigned - 5,957 - 9,138,301 - 1,233,064 10,377,322 4,643,412
Unassigned 8,328,616 - - - - - 8,328,616 -
Total 8,647,410$ 45,361$ 394,136$ 9,138,301$ 1,820,306$ 2,670,641$ 22,716,155$ 6,713,481$
NOTE 12. INTERFUND TRANSFERS
Interfund transfers for the year ended December
31, 2025 are as follows:
Transfers In Transfers Out
Governmental funds
General -$ 250,000$
Community Center 100,000 -
Capital Projects 1,332,951 -
Nonmajor governmental 402,000 1,082,951
Total governmental funds 1,834,951 1,332,951
Enterprise funds
Water 55,014 -
Deputy Registrar - 502,000
Total enterprise funds 55,014 502,000
Governmental activities - 55,014
1,889,965$ 1,889,965$
The following schedule reflects each fund transfer:
Transfers Out Amount
MCC Deputy Registrar 100,000$ (1)
Park & Pathway Deputy Registrar 402,000 (2)
Capital Projects Street Lighting 380,000 (3)
Capital Projects Park & Pathway 702,951 (4)
Capital Projects General 250,000 (5)
Water Governmental
activities 55,014 (6)
Total 1,889,965$
(1) Transfer to provide funding support to Community
Center operations
(2) Transfer to provide funding for West Bridge Park
playground structure
(3) Transfer to provide funding for School Boulevard
Transportation Improvement Project lighting
(4) Transfer to close the Park & Pathway Improvement Fund
(5) Transfer to allocate available funding to future projects
(6) Transfer to report land for water tower in the Water Fund
Transfers In
64
Notes to the Financial Statements CITY OF MONTICELLO
NOTE 13. SPECIAL ITEM – PFAS SETTLEMENT
The city entered into a settlement agreement with numerous companies, including 3M and DuPont,
related to PFAS contamination detected in the city’s water supply wells. Under the terms of the
agreement, the city has been awarded $309,483 in settlement proceeds, net of administrative and service
fees as of December 31, 2025. Additional settlement proceeds are anticipated but amounts are unknown.
NOTE 14. RISK MANAGEMENT AND LITIGATION
The city is exposed to various risks of losses related to torts; theft of, damage to, and destruction of
assets; errors and omissions; injuries to employees; and natural disasters. For the past several years,
the city has obtained insurance coverage from various trusts administered by the League of Minnesota
Cities Insurance Trust (LMCIT). Additionally, the city has effectively managed risk through various
employee education and prevention programs.
All risk management activities are accounted for in the appropriate fund. Expenditures and claims are
recognized when it is probable that a loss has occurred, the amount of the loss can be reasonably
estimated, and the loss amount exceeds insurance coverage. In determining claims, events that might
create claims, but for which none have been reported, are considered.
The city attorney estimates that the amount of actual or potential claims against the city as of December
31, 2025 will not materially affect the financial condition of the city.
Workers compensation coverage is procured through Bitco Insurance, a private insurance company. The
city has never had to contribute any additional funds beyond the annual standard premium and
deductibles, which is $1,000 per occurrence. The city’s annual premium reflects a base rate based on
number of employees, total employee compensation, and history of workplace injuries.
The city provides health benefit coverage to all full-time employees and certain part-time employees who
meet personnel policy set criteria. The city pays a portion of the premium, which is set annually by council
action, and is not obligated to make any other payments.
The city also purchases property, vehicle, liability, and various other insurance coverages from the
LMCIT. The standard deductible for most claims is $1,000. State statute sets tort limits for most liability
claims at $500,000 per individual and $1,500,000 for all claimants for one incident. Annually, the council
can waive the tort limits, but has chosen not to without exception. The city periodically receives a dividend
from LMCIT and has never had to contribute additional funds beyond premiums and deductibles.
There were no significant reductions in insurance coverage from the previous year and there were no
settlements in excess of insurance coverage in each of the past three years.
NOTE 15. CLAIMS AND JUDGMENTS
The city participates in several federal and state programs that are fully or partially funded by grants
received from other governmental units. Expenditures financed by grants are subject to audit by the
appropriate grantor government. If expenditures are disallowed due to noncompliance with grant program
regulations, the city may be required to reimburse the grantor government.
As of December 31, 2025, certain amounts of grant expenditures have not been audited by the granting
agency, but the city believes that disallowed expenditures discovered in subsequent audits, if any, will
not have a material effect on any of the individual funds or the overall financial position of the city.
NOTE 16. CONCENTRATION OF REVENUES
Cargill Kitchen Solutions is the largest customer of water and sewer services. The company’s water
purchases account for $152,209, or 5.8%, of Water Fund operating revenue; and the company’s sewer
charges account for $464,335, or 13.8%, of Sewer Fund operating revenue.
Additionally, Northern States Power Company’s (Xcel Energy) net tax capacity for property taxes payable
in 2025 is $15,627,011 or 38.1%, of the total net capacity of $41,043,491. Accordingly, Xcel Energy’s
share of the $14.1 million city property tax levy is $5.37 million. The tax capacity on January 1, 2025, is
based on market values certified to the state on January 1, 2024.
65
(This page left blank intentionally)
66
REQUIRED SUPPLEMENTARY
INFORMATION
CITY OF MONTICELLO
Required Supplementary Information
Schedule of Employer's Share and Non-Employer Proportionate Share of Net Pension Liability
PERA Fiscal
Year Ending
June 30,
Employer's
Proportion
(Percentage)
of the Net
Pension
Liability
Employer's
Proportionate
Share
(Amount) of
the Net
Pension
Liability
Employer's
Proportionate
Share of the
State of
Minnesota's
Proportionate
Share of the
Net Pension
Liability
Total
Employer's
Proportionate
Share of the
Net Pension
Liability
(1)
Covered
Payroll
Employer's
Proportionate
Share of the
Net Pension
Liability as a
Percentage of
Covered
Payroll
Plan
Fiduciary Net
Position as a
Percentage
of the Total
Pension
Liability
2016 0.0588% $4,774,268 $62,387 $4,836,655 $3,651,024 130.77% 68.9%
2017 0.0549% 3,504,780 44,041 3,548,821 3,534,506 99.16% 75.9%
2018 0.0550% 3,051,175 100,077 3,151,252 3,697,145 82.53% 79.5%
2019 0.0565% 3,123,758 96,996 3,220,754 3,997,826 78.14% 80.2%
2020 0.0568% 3,405,420 104,919 3,510,339 4,048,023 84.13% 79.1%
2021 0.0580% 2,476,859 75,675 2,552,534 4,176,545 59.30% 87.0%
2022 0.0615% 4,870,820 142,791 5,013,611 4,608,333 105.70% 76.7%
2023 0.0629% 3,517,298 97,059 3,614,357 5,005,265 70.27% 83.1%
2024 0.0632% 2,335,573 119,406 2,454,979 5,337,627 43.76% 89.1%
2025 0.0632% 2,095,223 50,543 2,145,766 5,726,213 36.59% 90.8%
Schedule of Employer's Pension Contributions
Public Employees Retirement Association - General Employees Retirement Fund
Fiscal Year
Ending
December 31,
Statutorily
Required
Contributions
(a)
Contribution
Deficiency
(Excess)
(a-b)
(1)
Covered
Payroll
(c)
2016 267,516$ -$ 3,566,884$
2017 269,721 - 3,596,280
2018 287,700 - 3,835,998
2019 308,216 - 4,109,547
2020 304,809 - 4,064,114
2021 321,643 - 4,288,573
2022 363,693 - 4,849,241
2023 388,213 - 5,176,171
2024 415,693 - 5,542,573
2025 443,616 - 5,914,880
(1) For purposes of this schedule, covered payroll is defined as "pensionable wages."
7.5%
Public Employees Retirement Association - General Employees Retirement Fund
Contributions as a Percentage
of Covered Payroll
(b/c)
7.5%
Contributions in Relation to the
Statutorily Required
Contributions
(b)
269,721
287,700
$267,516 7.5%
443,616 7.5%
308,216
304,809
321,643
7.5%
7.5%
7.5%
415,693 7.5%
388,213 7.5%
363,693 7.5%
67
CITY OF MONTICELLO
Required Supplementary Information
Schedule of Changes in the Fire Relief Association's Net Pension Liability (Asset) and Related Ratios
2016 2017 2018 2019 2020 2021 2022 2023 2024 2025
Total pension liability
Service cost 79,730$ 66,097$ 71,325$ 69,774$ 69,921$ 111,407$ 111,576$ -$ 93,442$ 93,645$
Interest 44,224 49,857 49,897 50,829 43,168 40,329 50,536 - 73,241 64,921
Changes in benefit terms 90,761 67,016 74,540 - - 207,898 - - 39,864 -
Experience gain/(loss) (53,156) (30,666) 94,235 (148,892) (20,335) (18,598) 185,765 - (215,371) 34,077
Effect of changes in assumptions - (10,673) - 8,770 - 44,564 - - (34,098) -
Benefit payments, including refund of
member contributions (1,168) (164,699) (121,900) (321,833) - - (199,527) - (205,836) (61,044)
Net change in total pension liability 160,391 (23,068) 168,097 (341,352) 92,754 385,600 148,350 - (248,758) 131,599
Total pension liability - beginning 1,017,135 1,177,526 1,154,458 1,322,555 981,203 1,073,957 1,459,557 1,607,907 1,607,907 1,359,149
Total pension liability - ending (A) 1,177,526$ 1,154,458$ 1,322,555$ 981,203$ 1,073,957$ 1,459,557$ 1,607,907$ 1,607,907$ 1,359,149$ 1,490,748$
Plan fiduciary net position
Contributions - State 123,656$ 125,764$ 130,874$ 122,639$ 128,638$ 134,691$ 146,181$ -$ 161,446$ 181,117$
Supplemental benefits reimbursements - 2,000 1,000 5,068 - - 3,000 - 2,000 2,000
Net investment income 55,902 126,579 (54,150) 172,359 139,820 110,486 (228,981) - 172,398 117,643
Benefit payments, including refund of
member contributions (1,168) (164,699) (121,900) (321,833) - - (199,527) - (205,836) (61,044)
Administrative expenses (4,144) (4,331) (4,929) (5,204) (5,453) (5,508) (6,141) - (6,429) (6,729)
Net change in plan fiduciary net position 174,246 85,313 (49,105) (26,971) 263,005 239,669 (285,468) - 123,579 232,987
Plan fiduciary net position - beginning 1,026,460 1,200,706 1,286,019 1,236,914 1,209,943 1,472,948 1,712,617 1,427,149 1,427,149 1,550,728
Plan fiduciary net position - ending (B) 1,200,706$ 1,286,019$ 1,236,914$ 1,209,943$ 1,472,948$ 1,712,617$ 1,427,149$ 1,427,149$ 1,550,728$ 1,783,715$
Net pension liability (asset) - ending (A)-(B) (23,180) (131,561) 85,641 (228,740) (398,991) (253,060) 180,758 180,758 (191,579) (292,967)
Plan fiduciary net position as a percentage
of the total pension liability 102.0% 111.4% 93.5%123.3%137.2% 117.3% 88.8% 88.8% 114.1% 119.7%
Covered employee payroll (1)N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A
Net pension liability as a percentage of
covered employee payroll (1)N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A
Schedule of Employer's Pension Contributions - Monticello Fire Department Relief Association
(1) The Association is comprised of volunteers, therefore, there are no payroll expenditures (i.e., there are no covered employee payroll percentage calculations).
(2) In 2023, the City of Monticello transitioned from reporting the current year's FRA balances to reporting the FRA balances from one year prior.
Contribution Deficiency
(Excess)
(a-b)
-$
-
-
-
Non-Employer Contribution -
State 2% Fire Aid
123,656$
130,874
122,639
-
Actual Contributions Paid
(b)
-$
-
-
-
-
-
-
-
-
-
Statutorily Required
Contributions
(a)
City Fiscal
Year Ending
December 31,
2016
2018
2019
-$
2017 -
146,181
128,638
- -
-
- -
-
-
-
- - 125,764
2025 - - - 211,386
2023
2024 181,116
2020
2021
2022
164,446
134,691
68
CITY OF MONTICELLO
Required Supplementary Information
Schedule of Changes in the City's Total OPEB Liability and Related Ratios (1)
2018 2019 2020 2021 2022 2023 2024 2025
Total OPEB liability
Service cost 24,158$ 10,152$ 10,457$ 11,264$ 11,602$ 9,217$ 9,494$ 8,965$
Interest 9,998 10,347 5,210 5,726 3,378 3,466 5,652 5,862
Changes in assumptions - (2,047) - 208 - (15,271) - (18,792)
Differences between expected and actual experience - (187,489) - 6,399 - (21,540) - (21,040)
Benefit payments (5,938) (13,277) (2,040) (3,765) (7,684) (8,704) (7,624) (11,133)
Net change in total OPEB liability 28,218 (182,314) 13,627 19,832 7,296 (32,832) 7,522 (36,138)
Total OPEB liability - beginning 281,745 309,963 127,649 141,276 161,108 168,404 135,572 143,094
Total OPEB liability - ending 309,963$ 127,649$ 141,276$ 161,108$ 168,404$ 135,572$ 143,094$ 106,956$
Covered employee payroll 3,130,628$ 2,462,725$ 2,536,607$ 2,763,483$ 2,846,387$ 3,484,325$ 3,588,855$ 3,914,351$
Total OPEB liability as a percentage of covered
employee payroll 10% 5% 6% 6% 6% 4% 4% 3%
(1) The city implemented GASB Statement No. 75 in fiscal 2018 using a January 1, 2018 measurement date. This schedule is intended to present 10-year trend 'information. Additional
years will be added as they become available.
(2) No plan assets are accumulated in a trust that meets the criteria in paragraph 4 of GASB Statement No. 75.
69
CITY OF MONTICELLO
Schedule of Revenues, Expenditures and Changes in Fund Balance
Budget and Actual - General Fund
For the Year Ended December 31, 2025
101
Original and Final Variance with
Budget Actual Final Budget
Revenues
Property taxes 9,007,000$ 8,971,436$ (35,564)$
Franchise taxes 302,000 247,743 (54,257)
Special assessments - 1,595 1,595
Licenses and permits 482,000 903,899 421,899
Intergovernmental 825,000 757,123 (67,877)
Charges for services 1,568,700 1,768,997 200,297
Fines and forfeitures 78,500 89,628 11,128
Investment earnings 250,000 352,988 102,988
Other revenues 667,800 911,938 244,138
Total revenues 13,181,000 14,005,347 824,347
Expenditures
Current
General government
Mayor and council 58,815 52,065 (6,750)
City administration 1,022,829 1,075,537 52,708
City clerk 221,064 243,380 22,316
Finance 753,232 761,330 8,098
Legal 35,000 43,519 8,519
Human resources 238,507 222,275 (16,232)
Planning and zoning 632,216 712,977 80,761
City hall 93,134 117,444 24,310
Public safety
Law enforcement 2,487,000 2,498,578 11,578
Fire and rescue 512,719 552,946 40,227
Fire relief 165,000 213,386 48,386
Building inspections 711,807 685,622 (26,185)
Emergency Management 12,000 6,989 (5,011)
Animal control 65,618 69,064 3,446
National Guard 19,500 18,913 (587)
Public works
Public works administration 179,057 182,915 3,858
Public works inspections 333,501 334,693 1,192
Streets and alleys 1,377,989 1,342,590 (35,399)
Ice and snow removal 475,293 203,934 (271,359)
Shop and garage 339,012 374,138 35,126
Street lighting 291,000 250,112 (40,888)
Sanitation
Refuse and recycling collection 900,000 941,458 41,458
Recreation and culture
Senior center 107,363 106,970 (393)
Park operations 1,643,054 1,681,499 38,445
Park ballfields 34,100 64,138 30,038
Shade tree 225,936 179,322 (46,614)
Public arts 149,128 200,838 51,710
Library 91,126 95,596 4,470
Total expenditures 13,175,000 13,232,228 57,228
Excess of revenues over expenditures 6,000 773,119 767,119
Other financing (uses)
Transfers out (6,000) (250,000) (244,000)
Net change in fund balance - 523,119 523,119
Fund balance at beginning of year 8,124,291 8,124,291 -
Fund balance at end of year 8,124,291$ 8,647,410$ 523,119$
70
CITY OF MONTICELLO
Schedule of Revenues, Expenditures and Changes in Fund Balance
Budget and Actual - Community Center Fund
For the Year Ended December 31, 2025
226
Original and Final Variance with
Budget Actual Final Budget
Revenues
Property taxes 535,000$ 535,000$ -$
Charges for services 1,403,100 1,352,238 (50,862)
Investment earnings 14,900 3,190 (11,710)
Other revenues 14,000 14,276 276
Total revenues 1,967,000 1,904,704 (62,296)
Expenditures
Current
Recreation and culture
Operations 559,889 582,047 22,158
Rentals 9,500 8,950 (550)
Aquatics 298,031 375,423 77,392
Concessions & guest services 259,488 298,415 38,927
Maintenance 721,212 718,368 (2,844)
Programming 198,880 312,862 113,982
Capital outlay
Programming 20,000 - (20,000)
Total expenditures 2,067,000 2,296,065 229,065
Deficiency of revenues under expenditures (100,000) (391,361) (291,361)
Other financing sources
Transfers in 100,000 100,000 -
Net change in fund balance - (291,361) (291,361)
Fund balance at beginning of year 336,722 336,722 -
Fund balance at end of year 336,722$ 45,361$ (291,361)$
71
Notes to the Required Supplementary Information CITY OF MONTICELLO
NOTE 1. SCHEDULE OF EMPLOYER’S SHARE AND NON-EMPLOYER PROPORTIONATE SHARE
OF NET PENSION LIABILITY – PUBLIC EMPLOYEES RETIREMENT ASSOCIATION
The following changes were reflected in the valuation performed on behalf of the Public Employees
Retirement Association for the year ended June 30:
2025
Changes in Actuarial Assumptions
• The combined service annuity loading factors increased from 15% to 19% for vested terminated
members and from 3% to 44% for non-vested, terminated members. The assumed post-
retirement benefit increase changed from 1.25% to 1.5%.
Changes in Plan Provisions
• The post-retirement benefit increase formula changed to 100% of the Social Security annual
increase, between 1% and 1.75% , beginning January 1, 2026. If the funded ratio (on a market
value of assets basis) is less than 85% for the last two consecutive annual valuations or is less
than 80% in the most recent actuarial valuation, the maximum is reduced to 1.5%. Previously,
the benefit increase was 50% of the Social Security annual increase, between 1% and 1.5%.The
1% additional employer contribution is eliminated when the plan reaches 98% funded status (on
an actuarial value of assets basis); this contribution was previously scheduled to stop when the
plan reached 100% funded status.
2024
Changes in Actuarial Assumptions
• The following changes in assumptions are effective with the July 1, 2024 valuation, as
recommended in the most recent experience study (dated June 29, 2023): Rates of merit and
seniority were adjusted, resulting in slightly higher rates. Assumed rates of retirement were
adjusted as follows: increase the rate of assumed unreduced retirements, slight adjustments to
Rule of 90 retirement rates, and slight adjustments to early retirement rates for Tier 1 and Tier 2
members. Minor increase in assumed withdrawals for males and females. Lower rates of
disability. Continued use of Pub-2010 general mortality table with slight rate adjustments as
recommended in the most recent experience study. Minor changes to form of payment
assumptions for male and female retirees. Minor changes to assumptions made with respect to
missing participant data.
Changes in Plan Provisions
• The workers’ compensation offset for disability benefits was eliminated. The actuarial equivalent
factors updated to reflect the changes in assumptions.
2023
Changes in Actuarial Assumptions
• The investment return assumption and single discount rate were changed from 6.5% to 7%.
Changes in Plan Provisions
• An additional one-time direct state aid contribution of $170.1 million will be contributed to the
Plan on October 1, 2023.
• The vesting period of those hired after June 30, 2020, was changed from five years of allowable
service to three years of allowable service.
• The benefit increase delay for early retirements on or after January 1, 2024, was eliminated.
• A one-time, non-compounding benefit increase of 2.5% minus the actual 2024 adjustment will be
payable in a lump sum for calendar year 2024 by March 31,2024.
2022
Changes in Actuarial Assumptions
• The mortality improvement scale was changed from Scale MP-2020 to Scale MP-2021.
72
Notes to the Required Supplementary Information CITY OF MONTICELLO
Changes in Plan Provisions
• There were no changes in plan provisions since the previous valuation.
2021
Changes in Actuarial Assumptions
• The investment return and single discount rates were changed from 7.50 percent to 6.50 percent,
for financial reporting purposes.
• The mortality improvement scale was changed from Scale MP-2019 to Scale MP-2020.
Changes in Plan Provisions
• There were no changes in plan provisions since the previous valuation.
2020
Changes in Actuarial Assumptions
• The price inflation assumption was decreased from 2.50% to 2.25%.
• The payroll growth assumption was decreased from 3.25% to 3.00%.
• Assumed salary increase rates were changed as recommended in the June 30, 2019 experience
study. The net effect is assumed rates that average 0.25% less than previous rates.
• Assumed rates of retirement were changed as recommended in the June 30, 2019 experience
study. The changes result in more unreduced (normal) retirements and slightly fewer Rule of 90
and early retirements.
• Assumed rates of termination were changed as recommended in the June 30, 2019 experience
study. The new rates are based on service and are generally lower than the previous rates for
years 2-5 and slightly higher thereafter.
• Assumed rates of disability were changed as recommended in the June 30, 2019 experience
study. The change results in fewer predicted disability retirements for males and females.
• The base mortality table for healthy annuitants and employees was changed from the RP-2014
table to the Pub-2010 General Mortality table, with adjustments. The base mortality table for
disabled annuitants was changed from the RP-2014 disabled annuitant mortality table to the
PUB-2010 General/Teacher disabled annuitant mortality table, with adjustments.
• The mortality improvement scale was changed from Scale MP-2018 to Scale MP-2019.
• The assumed spouse age difference was changed from two years older for females to one year
older.
• The assumed number of married male new retirees electing the 100% Joint & Survivor option
changed from 35% to 45%. The assumed number of married female new retirees electing the
100% Joint & Survivor option changed from 15% to 30%. The corresponding number of married
new retirees electing the Life annuity option was adjusted accordingly.
Changes in Plan Provisions
• Augmentation for current privatized members was reduced to 2.0% for the period July 1, 2020
through December 31, 2023 and 0.0% after. Augmentation was eliminated for privatizations
occurring after June 30, 2020.
2019
Changes in Actuarial Assumptions
• The mortality projection scale was changed from MP-2017 to MP-2018.
Changes in Plan Provisions
• The employer supplemental contribution was changed prospectively, decreasing from $31.0
million to $21.0 million per year. The State’s special funding contribution was changed
prospectively, requiring $16.0 million due per year through 2031.
2018
Changes in Actuarial Assumption
73
Notes to the Required Supplementary Information CITY OF MONTICELLO
• The mortality projection scale was changed from MP-2015 to MP-2017.
• The assumed benefit increase was changed from 1.00% per year through 2044 and 2.50% per
year thereafter to 1.25% per year.
Changes in Plan Provisions
• The augmentation adjustment in early retirement factors is eliminated over a five-year period
starting July 1, 2019, resulting in actuarial equivalence after June 30, 2024.
• Interest credited on member contributions decreased from 4.00% to 3.00%, beginning July 1,
2018.
• Deferred augmentation was changed to 0.00%, effective January 1, 2019. Augmentation that
has already accrued for deferred members will still apply.
• Contribution stabilizer provisions were repealed.
• Postretirement benefit increases were changed from 1.00% per year with a provision to
increase to 2.50% upon attainment of 90.00% funding ratio to 50.00% of the Social Security
Cost of Living Adjustment, not less than 1.00% and not more than 1.50%, beginning January 1,
2019.
• For retirements on or after January 1, 2024, the first benefit increase is delayed until the retiree
reaches normal retirement age; does not apply to Rule of 90 retirees, disability benefit
recipients, or survivors.
• Actuarial equivalent factors were updated to reflect revised mortality and interest assumptions.
2017
Changes in Actuarial Assumption
• The Combined Service Annuity (CSA) loads were changed from 0.8% for active members and
60% for vested and non-vested deferred members. The revised CSA loads are now 0.00% for
active member liability, 15.00% for vested deferred member liability, and 3.00% for nonvested
deferred member liability. The assumed post-retirement benefit increase rate was changed from
1.00% per year for all years to 1.00% per year through 2044, and 2.50% per year thereafter.
Changes in Plan Provisions
• The State’s contribution for the Minneapolis Employees Retirement Fund equals $16,000,000 in
2017 and 2018, and $6,000,000 thereafter.
• The Employer Supplemental Contribution for the Minneapolis Employees Retirement Fund
changed from $21,000,000 to $31,000,000 in calendar years 2019 to 2031. The state’s
contribution changed from $16,000,000 to $6,000,000 in calendar years 2019 to 2031.
2016
Changes in Actuarial Assumptions
• The assumed postretirement benefit increase rate was changed from 1.00% per year through
2035 and 2.50% per year thereafter to 1.00% per year for all years.
• The assumed investment return was changed from 7.90% to 7.50%. The single discount rate
changed from 7.90% to 7.50%.
• Other assumptions were changed pursuant to the experience study June 30, 2015. The
assumed future salary increases, payroll growth, and inflation were decreased by 0.25% to
3.25% for payroll growth and 2.50% for inflation.
Changes in Actuarial Plan Provisions
• There have been no changes since the prior valuation.
74
Notes to the Required Supplementary Information CITY OF MONTICELLO
NOTE 2. SCHEDULE OF CHANGES IN THE FIRE RELIEF ASSOCIATION’S NET PENSION
LIABILITY (ASSET) AND RELATED RATIOS
Changes in Actuarial Assumptions and Benefit Terms
• 2025 – Assumed a .5% disablement rate.
• 2024 – The discount rate increased from 3.57% to 4.72%. The benefit level was increased from
$5,100 to $5,300.
• 2023 – The city changed from using the current year FRA pension information to using the results
from the FRA on a one-year lookback basis.
• 2021 – The discount rate was decreased from 4.25% to 3.57%, which is primarily due to a lower
weighted average rate of return on the FRA’s asset classes of investment. The benefit level was
increased from $4,200 to $5,100 per year of service.
• 2019 – The discount rate was decreased from 4.42% to 4.25%, which is primarily due to a lower
weighted average rate of return on the FRA's asset classes of investments.
• 2018 – The benefit level was increased from $3,900 to $4,200 per year of service.
• 2017 – The annual turnover rate was changed from 10% to 1%. The discount rate was increased
from 4.19% to 4.42%, which is primarily due to a reduction in the portfolio's average expense
load. The benefit level was increased from $3,600 to $3,900 per year of service.
• 2016 – The benefit level was increased from $3,300 to $3,600 per year of service.
NOTE 3. SCHEDULE OF CHANGES IN THE CITY’S TOTAL OPEB LIABILITY AND RELATED
RATIOS
Changes in Actuarial Assumptions
• 2025 – The health care trend rates were changed to better anticipate short term and long term
medical increases. The retirement, withdrawal, and salary increase rates were update to reflect
the latest experience study. The discount rate was changed for 4.00% to 4.20%. These changes
decreased the liability $18,792.
• 2023 – The health care trend rates were changed to better anticipate short term and long term
medical increases. The mortality tables were updated from the Pub-2010 Public Retirement
Plans General Headcount-Weighted Mortality Tables with <P-2020 Generational Improvement
Scale to the Pub-2010 Public Retirement Plans General Headcount-Weighted Mortality Tables
with MP-2021 Generational Improvement Scale. The inflation rate was changed from 2% to
2.5%. The discount rate was changed from 2% to 4%. These changes decreased the liability
$15,271.
• 2021 – The healthcare trend rates were changed to better anticipate short term and long-term
medical increases. The mortality tables were updated from the RP-2014 White Collar Mortality
Tables with the MP-2018 Generational Improvement Scale to the Pub-2010 Public Retirement
Plans General Headcount-Weighted Mortality Tables with MP-2020 Generational Improvement
Scale. The salary increase rates were changed from a flat 3% per year for all employees to rates
which vary by service. The retirement and withdrawal rates were updated. The inflation rate
changed from 2.50% to 2.00%. The discount rate was changed from 3.80% to 2.00%.
• 2020 – The healthcare trend rate was changed to better anticipate short-term and long-term
medical increases.
• 2019 – The discount rate was increased from 3.3% to 3.8%. The health care trend rates were
changed to better anticipate short term and long-term medical increases. The mortality tables
were updated from the RP-2014 White Collar Mortality Tables with MP-2016 Generational
Improvement Scale to the RP-2014 White Collar Mortality Tables with MP-2018 Generational
Improvement Scale. The percentage of retirees electing single or family coverage was updated
to reflect that the city sponsored plan has separated single and family premium rates, rather than
a composite rate. The assumption was changed that 50% of eligible retirees will elect to continue
coverage and 30% of retirees with coverage will elect family coverage.
• 2018 – The discount rate was decreased from 3.5% to 3.3%.
75
Notes to the Required Supplementary Information CITY OF MONTICELLO
NOTE 4. BUDGETARY INFORMATION
A. Budgetary basis of accounting
The city follows these procedures in establishing the budgetary data reflected in the basic financial
statements:
A. Prior to September 1, the city administrator submits to the city council a proposed operating
budget for the fiscal year commencing the following January 1. The operating budget includes
proposed expenditures and the means of financing them. The city council provides input and
adjustments. Based on the proposed budget, the city council certifies the proposed property tax
levy to the county auditor according to Minnesota Statutes before September 30.
B. Public hearings are conducted at the city council’s chambers in the Monticello Community Center.
C. On or before December 28, the final budget is legally enacted by city council resolution and the
final property tax levy is certified to the county auditor.
D. Management is authorized to transfer budgeted amounts between departments within a fund;
however, any revisions that alter the total expenditures of any fund must be approved by the city
council.
E. The city has legally adopted budgets for the General Fund and all special revenue funds.
Expenditures may not legally exceed budgeted appropriations at the total fund level. Monitoring
of budgets is maintained at the department level. All amounts over budget have been approved
by the city council through the disbursement process. The city is not legally required to adopt an
annual budget for the nonmajor special revenue funds, the Debt Service Fund, and capital
projects funds. Project-length financial plans are adopted for the Debt Service and capital projects
funds.
F. Budgets are adopted on a basis consistent with accounting principles generally accepted in the
United States of America. Budgeted amounts are as originally adopted or amended by the city
council. All annual appropriations lapse at year-end.
B. Excess of expenditures over appropriations
For the year ended December 31, 2025, expenditures exceeded appropriations in the General Fund by
$57,228. The excess of expenditures was related to costs incurred related to contributions and
developer-reimbursement activity, most notably in planning and zoning and public arts. Excess
expenditures were funded with revenues in excess of budget.
For the year ended December 31, 2025, expenditures exceeded appropriations in the Community
Center Fund by $229,065. The excess of expenditures was related to salary expenditures as well as
some repair and maintenance expenditures. Excess expenditures were funded with available fund
balance.
76
NONMAJOR GOVERNMENTAL
FUNDS
NONMAJOR GOVERNMENTAL FUNDS
SPECIAL REVENUE FUNDS are used to account for revenue derived from specific taxes or other
earmarked revenue sources (other than for major capital projects) that are restricted by law or
administrative action to expenditures for specified purposes.
Small Cities Development Program (SCDP) Fund - Established to account for the administration of
loans to local businesses while following state and federal guidelines.
Cemetery Fund – Established to account for the activities of cemetery operations at Riverside
Cemetery.
CAPITAL PROJECTS FUNDS are used to account for resources used for the acquisition and
construction of capital assets by the city, except for those financed by proprietary funds.
Street Lighting Improvement Fund – This fund was established to account for activities incorporating
street lighting into designated areas throughout the city. A portion of the city’s electric franchise fee is
the main revenue source for this fund.
Park & Pathway Improvement Fund – This fund was established to account for the accumulation of
unrestricted resources from other sources used for park and pathway improvements.
Park Dedication Fund – This fund was established to account for restricted fees collected from
developers for park land acquisition and for park and pathway improvements.
CITY OF MONTICELLO
Combining Balance Sheet
Nonmajor Governmental Funds
December 31, 2025
221 215 403 404 405
Small Cities Street
Development Lighting Park &Park
Program Cemetery Improvement Pathway Dedication Total
ASSETS
Cash and investments 961,070$ 231,901$ 1,178,554$ -$ 175,000$ 2,546,525$
Receivables
Deferred special assessments - - - - 2,644 2,644
Accounts - - 54,510 - - 54,510
Prepaid items - 272 - - - 272
Notes receivable 69,566 - - - - 69,566
Total assets 1,030,636$ 232,173$ 1,233,064$ -$ 177,644$ 2,673,517$
LIABILITIES
Accounts and contracts payable -$ 232$ -$ -$ -$ 232$
DEFERRED INFLOWS OF RESOURCES
Unavailable revenue - special assessments - - - - 2,644 2,644
FUND BALANCES
Nonspendable - 272 - - - 272
Restricted
Economic development 1,030,636 - - - - 1,030,636
Cemetery maintenance - 231,669 - - - 231,669
Park improvements - - - - 175,000 175,000
Assigned for capital improvements - - 1,233,064 - - 1,233,064
Total fund balances 1,030,636 231,941 1,233,064 - 175,000 2,670,641
Total liabilities, deferred inflows of
resources, and fund balances 1,030,636$ 232,173$ 1,233,064$ -$ 177,644$ 2,673,517$
Capital Projects FundsSpecial Revenue Funds
77
CITY OF MONTICELLO
Combining Statement of Revenues, Expenditures and Changes in Fund Balance
Nonmajor Governmental Funds
For the Year Ended December 31, 2025
245
221 215 403 404 405
Small Cities 651 Street
Development Lighting Park &Park
Program Cemetery Improvement Pathway Dedication Total
Revenues
Franchise taxes -$ -$ 168,646$ -$ -$ 168,646$
Special assessments - - - - 743 743
Charges for services - 74,355 - - - 74,355
Investment earnings 44,208 10,158 66,900 - 7,777 129,043
Interest on loans 2,276 - - - - 2,276
Other revenues - 100 - 250,000 - 250,100
Total revenues 46,484 84,613 235,546 250,000 8,520 625,163
Expenditures
Current
Recreation and culture - 31,944 - - - 31,944
Capital outlay
Recreation and culture - - - 664,151 - 664,151
Total expenditures - 31,944 - 664,151 - 696,095
Other financing sources (uses)
Transfers in - - - 402,000 - 402,000
Transfers out - - (380,000) (702,951) - (1,082,951)
Total other financing sources (uses)- - (380,000) (300,951) - (680,951)
Net change in fund balance 46,484 52,669 (144,454) (715,102) 8,520 (751,883)
Fund balance at beginning of year 984,152 179,272 1,377,518 715,102 166,480 3,422,524
Fund balance at end of year 1,030,636$ 231,941$ 1,233,064$ -$ 175,000$ 2,670,641$
Special Revenue Funds Capital Projects Funds
78
INTERNAL SERVICE FUNDS
INTERNAL SERVICE FUNDS
INTERNAL SERVICE FUNDS are used to account for the financing of centralized services to city
departments on a cost-reimbursement basis (including depreciation).
Benefit Accrual Fund – This fund was established to account for resources accumulated to satisfy paid-
time-off (PTO) and vacation/sick leave liabilities of governmental fund employees.
Central Equipment Fund – This fund was established to account for equipment purchases and rental
to various governmental fund departments.
Information Technology (IT) Services Fund – This fund was established to account for the accumulation
and distribution of various IT related costs, including communications, software support, capital and
non-capital equipment, and software purchases.
Facilities Management Fund – This fund was established to account for the accumulation and
distribution of various Facility Maintenance related costs across the city owned properties.
CITY OF MONTICELLO
Combining Statement of Net Position
Internal Service Funds
December 31, 2025
704 703 702 701
Benefit Central IT Facilities
Accrual Equipment Services Maintenance Total
ASSETS
Current assets
Cash and investments 440,224$ 1,190,263$ 167,115$ 74,579$ 1,872,181$
Prepaid items - - 97,075 3,139 100,214
Total current assets 440,224 1,190,263 264,190 77,718 1,972,395
Noncurrent assets
Capital assets
Machinery and equipment - 6,398,142 321,871 - 6,720,013
Less accumulated depreciation - (2,840,670) (233,312) - (3,073,982)
Total noncurrent assets - 3,557,472 88,559 - 3,646,031
TOTAL ASSETS 440,224 4,747,735 352,749 77,718 5,618,426
LIABILITIES
Current liabilities
Accounts payable - 388 3,709 28,681 32,778
Due to other governmental units - 3,042 - 108 3,150
Compensated absences due within one year 314,250 - 1,549 722 316,521
Total current liabilities 314,250 3,430 5,258 29,511 352,449
Noncurrent liabilities
Compensated absences payable - net current portion 60,469 - 172 80 60,721
TOTAL LIABILITIES 374,719 3,430 5,430 29,591 413,170
NET POSITION
Investment in capital assets - 3,557,472 88,559 - 3,646,031
Unrestricted 65,505 1,186,833 258,760 48,127 1,559,225
TOTAL NET POSITION 65,505$ 4,744,305$ 347,319$ 48,127$ 5,205,256$
79
CITY OF MONTICELLO
Combining Statement of Revenues, Expenses and Changes in Net Position
Internal Service Funds
For the Year Ended December 31, 2025
701
704 703 702 701
Benefit Central IT Facilities
Accrual Equipment Services Maintenance Total
Operating revenues
Charges to other funds 19,609$ 691,860$ 597,496$ 734,000$ 2,042,965$
Other revenues - - 5,285 95,261 100,546
Total operating revenues 19,609 691,860 602,781 829,261 2,143,511
Operating expenses
Personal services 19,609 - 117,585 261,876 399,070
Materials and supplies - - 35,154 104,161 139,315
Other services and charges - - 422,706 536,904 959,610
Depreciation - 602,632 42,725 - 645,357
Total operating expenses 19,609 602,632 618,170 902,941 2,143,352
Operating income (loss)- 89,228 (15,389) (73,680) 159
Nonoperating revenues
Investment earnings 19,562 48,858 6,920 2,592 77,932
Gain on sale of capital asset - 29,582 - - 29,582
Total nonoperating revenues 19,562 78,440 6,920 2,592 107,514
Change in net position 19,562 167,668 (8,469) (71,088) 107,673
Net position at beginning of year 45,943 4,576,637 355,788 119,215 5,097,583
Net position at end of year 65,505$ 4,744,305$ 347,319$ 48,127$ 5,205,256$
80
CITY OF MONTICELLO
Combining Statement of Cash Flows
Internal Service Funds
For the Year Ended December 31, 2025
704 703 702 701
Benefit Central IT Facilities
Accrual Equipment Services Maintenance Total
Cash flow from operating activities
Cash received from internal services provided 19,609$ 691,860$ 602,781$ 829,261$ 2,143,511$
Cash paid to suppliers for goods and services - (214) (467,660) (646,591) (1,114,465)
Cash paid to employees - - (116,992) (262,293) (379,285)
Net cash provided (used) by operating activities 19,609 691,646 18,129 (79,623) 649,761
Cash flows from capital and related financing activities
Acquisition of capital assets - (537,795) (13,472) - (551,267)
Cash flows from investing activities
Interest on investments 19,562 48,858 6,920 2,592 77,932
Increase (decrease) in cash and cash equivalents 39,171 202,709 11,577 (77,031) 176,426
Cash and cash equivalents - January 1 401,053 987,554 155,538 151,610 1,695,755
Cash and cash equivalents - December 31 440,224$ 1,190,263$ 167,115$ 74,579$ 1,872,181$
Reconciliation of operating income (loss) to net cash
provided by operating activities:
Operating income (loss)-$ 89,228$ (15,389)$ (73,680)$ 159$
Adjustments to reconcile operating income (loss) to
Net cash provided by operating activities:
Depreciation - 602,632 42,725 - 645,357
Changes in assets and liabilities
(Increase) decrease in prepaid items - - (9,699) (1,753) (11,452)
Increase (decrease) in accounts payable - (214) (101) (3,776) (4,091)
Increase (decrease) in due to other government units - - - 3 3
Increase (decrease) in compensated absences 19,609 - 593 (417) 19,785
Net cash provided (used) by operating activities 19,609$ 691,646$ 18,129$ (79,623)$ 649,761$
Schedule of noncash capital and related financing activities:
Gain on disposal of capital assets -$ 29,582$ -$ -$ 29,582$
Disposal of capital assets -$ 81,201$ -$ -$ 81,201$
Capital assets purchased on account -$ 3,430$ -$ -$ 3,430$
81
(This page left blank intentionally)
82
OTHER SUPPLEMENTARY
SCHEDULES
CITY OF MONTICELLO
Schedule of Revenues, Expenditures and Changes in Fund Balance
Budget and Actual - Small Cities Development Program
For the Year Ended December 31, 2025
221
Original and
Final Variance with
Budget Actual Final Budget
Revenues
Investment earnings 24,800$ 44,208$ 19,408$
Interest on loans 2,200 2,276 76
Total revenues 27,000 46,484 19,484
Fund balance at beginning of year 984,152 984,152 -
Fund balance at end of year 1,011,152$ 1,030,636$ 19,484$
83
CITY OF MONTICELLO
Schedule of Revenues, Expenditures and Changes in Fund Balance
Budget and Actual - Cemetery Fund
For the Year Ended December 31, 2025
215
Original and
Final Variance with
Budget Actual Final Budget
Revenues
Charges for services 47,700$ 74,355$ 26,655$
Investment earnings 4,300 10,158 5,858
Other revenues - 100 100
Total revenues 52,000 84,613 32,613
Expenditures
Current
Recreation and culture
Cemetery operations 36,000 31,944 (4,056)
Net change in fund balance 16,000 52,669 36,669
Fund balance at beginning of year 179,272 179,272 -
Fund balance at end of year 195,272$ 231,941$ 36,669$
84
CITY OF MONTICELLO
Schedule of Assets, Liabilities, Deferred Inflows of Resources and Fund Balances
Debt Service Activities
December 31, 2025
2015B 2016A 2017A 2018A 2019A 2020A
Bonds Bonds Bonds Bonds Bonds Bonds Total
ASSETS
Cash and cash equivalents 61,509$ 63,182$ 42,028$ 57,046$ 59,936$ 110,186$ 393,887$
Receivables
Unremitted special assessments - - 1,745 - - 1,078 2,823
Delinquent special assessments - - - - - 1,541 1,541
Deferred special assessments - 46,744 50,362 - 30,690 438,627 566,423
Total assets 61,509$ 109,926$ 94,135$ 57,046$ 90,626$ 551,432$ 964,674$
LIABILITIES
Accounts and contracts payable 429$ 429$ 429$ 429$ 429$ 429$ 2,574$
DEFERRED INFLOWS OF RESOURCES
Unavailable revenue - special assessments - 46,744 50,362 - 30,690 440,168 567,964
FUND BALANCES
Restricted for debt service 61,080 62,753 43,344 56,617 59,507 110,835 394,136
Total liabilities, deferred inflows
of resources, and fund balances 61,509$ 109,926$ 94,135$ 57,046$ 90,626$ 551,432$ 964,674$
85
CITY OF MONTICELLO
Schedule of Revenues, Expenditures and Changes in Fund Balance
Debt Service Activities
For the Year Ended December 31, 2025
319 320 321 322 323 324
2015B 2016A 2017A 2018A 2019A 2020A
Bonds Bonds Bonds Bonds Bonds Bonds Total
Revenues
Property taxes 160,879$ 433,189$ 403,942$ 419,127$ 680,836$ 98,220$ 2,196,193$
Special assessments 18,098 73,392 41,621 - 12,276 132,640 278,027
Investment earnings 6,724 11,685 8,984 8,431 11,910 8,220 55,954
Total revenues 185,701 518,266 454,547 427,558 705,022 239,080 2,530,174
Expenditures
Debt service
Principal 180,000 500,000 410,000 350,000 605,000 215,000 2,260,000
Interest and fiscal charges 33,854 28,529 61,819 97,817 108,517 19,797 350,333
Total expenditures 213,854 528,529 471,819 447,817 713,517 234,797 2,610,333
Net change in fund balance (28,153) (10,263) (17,272) (20,259) (8,495) 4,283 (80,159)
Fund balance at beginning of year 89,233 73,016 60,616 76,876 68,002 106,552 474,295
Fund balance at end of year 61,080$ 62,753$ 43,344$ 56,617$ 59,507$ 110,835$ 394,136$
86
DISCRETELY PRESENTED COMPONENT UNIT -
ECONOMIC DEVELOPMENT AUTHORITY
(This page left blank intentionally)
87
Schedule of Assets, Liabilities, Deferred Inflows of Resources and Fund Balances
Discretely Presented Component Unit - Economic Development Authority
December 31, 2025
TIF 6 (d) TIF 19 (d) TIF 20 (d) TIF 22 (d) TIF 24
EDA General GMEF TIF Future Raindance MS Shores Prairie West Downtown St. Henry's
ASSETS
Cash and investments 2,063,166$ 846,171$ -$ 162,624$ -$ -$ -$ 115,860$
Receivables
Unremitted taxes 1,659 - - - - - - -
Delinquent taxes 4,385 - - - - - - -
Accounts 167 - - - - - - -
Intrafund receivable 131,091 - - 640,399 - - - -
Prepaid items 4,839 - - - - - - -
Notes receivable - 386,448 - - - - - -
Land held for resale 2,759,929 - - - - - 163,200 -
Total assets 4,965,236$ 1,232,619$ -$ 803,023$ -$ -$ 163,200$ 115,860$
LIABILITIES
Accounts and contracts payable 32,857$ -$ -$ -$ -$ -$ -$ -$
Due to other governmental units 171 - - - - - - -
Intrafund payable - - 94,835 - - - - -
Unearned revenue - - - - - - 163,200 -
Escrow deposits 37,642 - - - - - - -
Total liabilities 70,670 - 94,835 - - - 163,200 -
DEFERRED INFLOWS OF RESOURCES
Unavailable revenue - property taxes 4,385 - - - - - - -
Total deferred inflows of resources 4,385 - - - - - - -
FUND BALANCES
Nonspendable 4,839 - - - - - - -
Restricted 147,095 1,232,619 - 803,023 - - - 115,860
Assigned
Economic Development 4,655,862 - (94,835) - - - - -
Façade Grant 82,385 - - - - - - -
Total fund balance 4,890,181 1,232,619 (94,835) 803,023 - - - 115,860
Total liabilities, deferred inflows of
resources, and fund balances 4,965,236$ 1,232,619$ -$ 803,023$ -$ -$ 163,200$ 115,860$
Required or Actual Decertification Date 12/9/2013 12/31/2023 12/10/2018 12/31/2023 12/31/2026
TIF District Type Redevelopment Housing Redevelopment Housing & Housing
(d) = decertified Redevelopment
88
CITY OF MONTICELLO
TIF 29 TIF 30 TIF 34 (d) TIF 40 TIF 41 TIF 42 TIF 43 TIF 45 TIF 46 GAAP Total
Front Porch CMHP Interchange Briggs UMC Headwaters Headwaters Block 52 WiHa Reconciliation EDA
122,210$ 84,299$ -$ 29,396$ 39,037$ -$ -$ -$ 5,146$ -$ 3,467,909$
- - - - - - - - - - 1,659
- - - - - - - - - - 4,385
- - - - - - - - - - 167
- - - - - - - - - (771,490) -
- - - - - - - - - - 4,839
- - - - - - - - - - 386,448
- - - - - - - - - - 2,923,129
122,210$ 84,299$ -$ 29,396$ 39,037$ -$ -$ -$ 5,146$ (771,490)$ 6,788,536$
-$ -$ -$ -$ -$ -$ -$ -$ -$ -$ 32,857$
- - - - - - - - - - 171
- 33,018 - - 640,399 1,381 1,381 476 - (771,490) -
- - - - - - - - - (163,200) -
- - - - - - - - - - 37,642
- 33,018 - - 640,399 1,381 1,381 476 - (934,690) 70,670
- - - - - - - - - - 4,385
- - - - - - - - - - 4,385
- - - - - - - - - - 4,839
122,210 51,281 - 29,396 (601,362) (1,381) (1,381) (476) 5,146 163,200 2,065,230
- - - - - - - - - - 4,561,027
- - - - - - - - - - 82,385
122,210 51,281 - 29,396 (601,362) (1,381) (1,381) (476) 5,146 163,200 6,713,481
122,210$ 84,299$ -$ 29,396$ 39,037$ -$ -$ -$ 5,146$ (771,490)$ 6,788,536$
12/31/2029 12/31/2029 12/31/2022 12/31/2045 12/31/2031 12/31/2050 12/31/2050 12/31/2050 12/31/2032
Housing Housing Redevelopment Housing Economic Housing Housing Redevelopment Economic
Development Development
Total fund balances - Economic Development Authority 6,713,481$
Some of the EDA's property taxes will be collected after year-end,
and, therefore, are reported as deferred inflows of resources
in the governmental funds.4,385
Noncurrent liabilities are not due and payable in the current period and,
therefore, are not reported as liabilities in the fund.
Compensated absences (16,611)
Total OPEB liability (2,139)
Net pension liability (66,880)
Governmental funds do not report long-term amounts related to pensions
and other post-employment benefits.
Deferred outflows of other post-employment benefits resources 215
Deferred outflows of pension resources 15,700
Deferred inflows of other post-employment benefits resources (966)
Deferred inflows of pension resources (42,291)
Total net position - governmental activities 6,604,894$
89
Schedule of Revenues, Expenditures and Changes in Fund Balance
Discretely Presented Component Unit - Economic Development Authority
For the Year Ended December 31, 2025
TIF 6 (d) TIF 19 (d) TIF 20 (d) TIF 22 (d) TIF 24
EDA General GMEF TIF Future Raindance MS Shores Prairie West Downtown St. Henry's
Revenues
Property taxes 490,310$ -$ -$ -$ -$ -$ -$ -$
Tax increments - - - - - - 4,674 71,188
Intergovernmental 25,355 - - - - - - -
Charges for services 5,641 - - - - - - -
Investment earnings 153,290 - - - - - - -
Interest on loans 14,025 19,999 - 20,301 - - - -
Other revenues 4,785 - - - - - - -
Total revenues 693,406 19,999 - 20,301 - - 4,674 71,188
Expenditures
Current
Salary and wages 167,073 - - - - - - -
Benefits 54,169 - - - - - - -
Supplies 106 - - - - - - -
Professional services - legal 18,439 - - - - - - -
Professional services - other 1,332 - 36,272 - - - 1,250 -
LPV Insurance 2,801 - - - - - - -
Legal and general publications 353 - - - - - - 45
Marketing 5,850 - - - - - - -
Dues and membership 7,519 - - - - - - -
Utilities 4,065 - - - - - - -
IT services 3,456 - - - - - - -
Travel and conferences 5,953 - - - - - - -
Qualifying TIF expenditures - - - 17,127 37,719 104,142 248,829 71,047
Other expenditures 230,506 45,178 - - - - - -
Excess increments - - - - - - 3,040 -
Interest on intrafund loans - - - - - - - -
PAYG payments to third parties - - - - - - - -
Total expenditures 501,622 45,178 36,272 17,127 37,719 104,142 253,119 71,092
Net change in fund balances 191,784 (25,179) (36,272) 3,174 (37,719) (104,142) (248,445) 96
Fund balance at beginning of year 4,698,397 1,257,798 (58,563) 799,849 37,719 104,142 248,445 115,764
Fund balance at end of year 4,890,181$ 1,232,619$ (94,835)$ 803,023$ -$ -$ -$ 115,860$
Required or Actual Decertification Date 12/9/2013 12/31/2023 12/10/2018 12/31/2023 12/31/2026
TIF District Type Redevelopment Housing Redevelopment Housing & Housing
(d) = decertified Redevelopment
90
CITY OF MONTICELLO
TIF 29 TIF 30 TIF 34 (d) TIF 40 TIF 41 TIF 42 TIF 43 TIF 45 TIF 46 GAAP Total
Front Porch CMHP Interchange Briggs UMC Headwaters Headwaters Block 52 WiHa Reconciliation EDA
-$ -$ -$ -$ -$ -$ -$ -$ -$ -$ 490,310$
45,895 20,867 - 83,917 73,302 - - 222,582 59,348 - 581,773
- - - - - - - - - - 25,355
- - - - - - - - - - 5,641
- - - - - - - - - - 153,290
- - - - - - - - - (34,326) 19,999
- - - - - - 138,804 - - - 143,589
45,895 20,867 - 83,917 73,302 - 138,804 222,582 59,348 (34,326) 1,419,957
- - - - - - - - - - 167,073
- - - - - - - - - - 54,169
- - - - - - - - - - 106
- - - - - 950 950 - 23 - 20,362
- - - - - - - - - - 38,854
- - - - - - - - - - 2,801
45 45 - 45 45 - - 45 488 - 1,111
- - - - - - - - - - 5,850
- - - - - - - - - - 7,519
- - - - - - - - - - 4,065
- - - - - - - - - - 3,456
- - - - - - - - - - 5,953
- - 77,340 - - - - - - - 556,204
- - - - - - - - - - 275,684
- - - - - - - - - - 3,040
- 2,467 - - 20,301 - 11,558 - - (34,326) -
- - - 75,525 - - - 222,582 56,247 - 354,354
45 2,512 77,340 75,570 20,346 950 12,508 222,627 56,758 (34,326) 1,500,601
45,850 18,355 (77,340) 8,347 52,956 (950) 126,296 (45) 2,590 - (80,644)
76,360 32,926 77,340 21,049 (654,318) (431) (127,677) (431) 2,556 163,200 6,794,125
122,210$ 51,281$ -$ 29,396$ (601,362)$ (1,381)$ (1,381)$ (476)$ 5,146$ 163,200$ 6,713,481$
12/31/2029 12/31/2029 12/31/2022 12/31/2045 12/31/2031 12/31/2050 12/31/2050 12/31/2050 12/31/2032
Housing Housing Redevelopment Housing Economic Housing Housing Redevelopment Economic
Development Development
Net change in fund balances - Economic Development Authority (80,644)$
Deferred inflows of resources are revenues included in the change
in net position, but are excluded from the change in fund balances
until they are available to liquidate liabilities of the current period.920
Long-term pension activity is not reported in governmental funds.
Pension expense 1,519
Pension revenue (208)
Some expenses reported in the Statement of Activities do not require the
use of current financial resources, and, therefore, are not reported as
expenditures in governmental funds.
Other post-employment benefit costs 2,551
Internal service funds are used by management to charge the costs of
various services to individual funds. The net revenues of certain activities
of internal service funds is reported with governmental activities.(565)
Change in net position - governmental activities (76,427)$
91
(This page left blank intentionally)
92
STATISTICAL SECTION
CITY OF MONTICELLO
Statistical Section
Table of Contents
December 31, 2025
STATISTICAL SECTION
Financial trends
Net Position by Component - Last Ten Fiscal Years 93
Changes in Net Position - Last Ten Fiscal years 94
General Governmental Tax Revenues by Source - Last Ten Fiscal Years 96
Fund Balances of Governmental Funds - Last Ten Fiscal Years 97
Changes in Fund Balances of Governmental Funds - Last Ten Fiscal Years 98
Governmental Funds Tax Revenues by Source - Last Ten Fiscal Years 99
Revenue capacity
Tax Capacity Value and Estimated Market Value of Taxable Property - Last Ten Fiscal Years 100
Property Tax Rates - All Direct and Overlapping Governments - Last Ten Fiscal Years 101
Property Tax Levies and Collections - Last Ten Fiscal Years 102
Principal Property Taxpayers - Current Year and Nine Years Ago 103
New Construction and Bank Deposits - Last Ten Fiscal Years 104
Water Sold by Customer Type - Last Ten Fiscal Years 105
Water and Sewer Utility Rates - Last Ten Fiscal Years 106
Debt capacity
Ratios of Outstanding Debt by Type - Last Ten Fiscal Years 107
Ratios of Net General Obligation Bonded Debt Outstanding - Last Ten Fiscal Years 108
Legal Debt Margin Information - Last Ten Fiscal Years 109
Computation of Direct and Overlapping Debt - As of December 31, 2025 110
Schedule of General Obligation Revenue Bond Coverage - Last Ten Fiscal Years 111
Economic and demographic information
Demographic and Economic Statistics - Last Ten Fiscal Years 112
Principal Employers - Current Year and Nine Years Ago 113
Operating information
City Government Employees by Function/Program - Last Ten Fiscal Years 114
Operating Indicators by Function - Last Ten Fiscal Years 115
Capital Assets Statistics by Function - Last Ten Fiscal Years 117
Schedule of Cash Flows Adjusted for Additional City Funding of Fiber Optics Fund -Last Ten Fiscal Years 118
II
CITY OF MONTICELLO
Net Position by Component
Last Ten Fiscal Years
(accrual basis of accounting)
2016 2017 2018 2019 2020 2021 2022 2023 2024 2025
Governmental activities
Net investment in
capital assets 41,077,683$ 41,535,637$ 43,517,983$ 40,008,410$ 40,836,892$ 52,035,838$ 52,824,487$ 63,232,687$ 71,286,189$ 77,986,107$
Restricted 10,569,693 11,599,951 9,649,085 8,690,172 5,451,441 4,010,180 3,353,897 4,211,042 2,798,311 4,502,904
Unrestricted 20,824,170 20,899,110 23,422,548 27,133,699 32,661,667 21,443,730 22,630,226 23,795,902 22,904,847 24,597,684
Total governmental
net position 72,471,546$ 74,034,698$ 76,589,616$ 75,832,281$ 78,950,000$ 77,489,748$ 78,808,610$ 91,239,631$ 96,989,347$ 107,086,695$
Business-type activities
Net investment in
capital assets 41,014,122$ 39,944,797$ 39,250,211$ 42,808,003$ 41,000,179$ 40,089,758$ 38,793,527$ 37,944,447$ 36,818,066$ 37,964,925$
Unrestricted 9,052,590 11,905,058 13,261,505 14,855,640 17,649,288 21,628,933 24,979,320 28,274,588 33,119,324 39,496,003
Total business-type
net position 50,066,712$ 51,849,855$ 52,511,716$ 57,663,643$ 58,649,467$ 61,718,691$ 63,772,847$ 66,219,035$ 69,937,390$ 77,460,928$
Primary government
Net investment in
capital assets 82,091,805$ 81,480,434$ 82,768,194$ 82,816,413$ 81,837,071$ 92,125,596$ 91,618,014$ 101,177,134$ 108,104,255$ 115,951,032$
Restricted 10,569,693 11,599,951 9,649,085 8,690,172 5,451,441 4,010,180 3,353,897 4,211,042 2,798,311 4,502,904
Unrestricted 29,876,760 32,804,168 36,684,053 41,989,339 50,310,955 43,072,663 47,609,546 52,070,490 56,024,171 64,093,687
Total primary government
net position 122,538,258$ 125,884,553$ 129,101,332$ 133,495,924$ 137,599,467$ 139,208,439$ 142,581,457$ 157,458,666$ 166,926,737$ 184,547,623$
Note 1: The city implemented GASB Statement No. 75 in fiscal year 2018. Prior years have not been adjusted to reflect these changes.
Note 2: In 2021, the city used existing resources to purchase land for future capital construction and redeemed the judgment portion of the 2014A bonds early, accounting for $10,242,136 of the increase in the net
investment in capital assets and decrease in unrestricted net position for governmental activities.
$-
$50
$100
$150
2016 2017 2018 2019 2020 2021 2022 2023 2024 2025
Mi
l
l
i
o
n
s
Primary Government Net Position
Net investment in
capital assets
Restricted net
position
Unrestricted net
position
93
CITY OF MONTICELLO
Changes in Net Position
Last Ten Fiscal Years
(accrual basis of accounting)
Expenses 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025
Governmental activities
General government 1,694,111$ 1,656,666$ 1,614,613$ 1,927,752$ 2,335,614$ 2,604,600$ 2,798,491$ 2,694,603$ 2,984,967$ 3,253,478$
Public safety 2,187,363 2,208,971 2,377,661 2,406,748 2,658,246 3,089,673 3,168,835 3,461,914 4,185,426 4,134,748
Public works 5,480,074 5,292,743 5,548,199 5,765,576 4,777,282 4,833,405 5,556,590 5,652,111 5,172,825 5,319,394
Sanitation 600,300 614,328 615,586 610,944 681,948 754,132 784,052 817,199 911,886 941,458
Transit 41,250 3,191 18,333 - - - - - - -
Recreation and culture 3,998,945 3,521,756 3,460,887 3,636,958 3,289,716 3,190,466 3,874,315 4,902,539 5,067,388 5,187,498
Economic development 756,620 488,380 1,206,067 872,984 1,914,825 - - - - -
Interest and fiscal charges 565,774 514,558 617,344 752,595 756,546 660,352 480,903 448,258 402,869 342,380
Total governmental activities 15,324,437 14,300,593 15,458,690 15,973,557 16,414,177 15,132,628 16,663,186 17,976,624 18,725,361 19,178,956
Business-type activities
Water 1,168,473 1,157,506 1,235,055 1,216,446 1,212,656 1,265,578 1,348,348 1,449,050 1,451,015 1,417,969
Sewer 2,618,887 2,708,053 2,932,413 2,889,438 2,960,153 3,048,580 3,232,878 3,215,564 3,065,698 3,512,776
Stormwater - - - - 658,771 732,851 797,995 650,470 644,602 659,287
Liquor 4,873,033 5,104,937 5,394,968 5,577,481 6,395,558 6,117,772 6,320,611 6,315,729 5,988,195 5,704,020
Fiber optics 2,483,262 2,252,287 2,276,015 1,990,052 2,063,712 2,081,312 2,005,196 1,934,753 2,040,533 1,962,788
Deputy registrar 345,492 390,658 421,662 458,695 538,625 596,933 785,822 687,325 714,541 740,957
Total business-type activities 11,489,147 11,613,441 12,260,113 12,132,112 13,829,475 13,843,026 14,490,850 14,252,891 13,904,584 13,997,797
Total primary government expenses 26,813,584$ 25,914,034$ 27,718,803$ 28,105,669$ 30,243,652$ 28,975,654$ 31,154,036$ 32,229,515$ 32,629,945$ 33,176,753$
Program Revenues
Governmental activities
Charges for services
General government 274,309$ 239,460$ 207,802$ 232,336$ 523,919$ 837,564$ 989,086$ 894,194$ 1,116,313$ 1,162,964$
Public safety 894,311 851,307 780,236 921,916 799,227 1,305,778 956,541 1,197,068 1,233,448 1,223,374
Public works 527,425 283,241 217,675 373,581 156,657 94,452 147,269 153,584 145,863 227,641
Sanitation 89,956 80,774 169,337 381,328 522,088 622,549 750,623 861,178 914,121 971,791
Recreation and culture 1,437,659 1,493,651 1,630,915 1,602,473 652,729 948,130 1,473,281 2,197,615 1,578,754 1,599,638
Economic development 301,232 13,846 2,832 14,149 10,915 10,597 14,032 8,067 7,310 6,382
Operating grants and contributions 389,005 429,697 428,443 431,004 463,335 1,539,082 1,192,748 1,640,385 856,498 757,123
Capital grants and contributions 3,297,265 1,996,441 2,044,698 1,024,891 1,289,990 3,314,487 1,529,488 5,926,525 2,670,075 5,272,598
Total governmental activities
program revenues 7,211,162 5,388,417 5,481,938 4,981,678 4,418,860 8,672,639 7,053,068 12,878,616 8,522,382 11,221,511
Business-type activities
Charges for services
Water 1,172,258 1,415,441 1,432,194 1,300,191 1,541,694 1,782,204 1,769,524 2,097,451 2,106,093 2,308,930
Sewer 2,223,252 2,472,774 2,581,833 2,443,856 2,559,354 2,686,445 2,925,917 3,014,189 3,162,560 3,367,698
Stormwater - - - 61,757 241,873 356,458 529,146 622,664 665,526 664,885
Liquor 5,450,630 5,755,166 6,090,981 6,377,457 7,405,960 7,105,934 7,174,059 7,043,302 6,493,915 6,336,820
Fiber optics 1,739,566 1,757,134 1,736,243 1,795,435 1,851,845 1,947,738 2,195,092 1,935,217 2,015,650 1,880,469
Deputy registrar 562,891 594,777 694,263 953,855 801,502 942,674 895,494 952,036 1,166,272 1,130,815
Operating grants and contributions - - - - - 95,601 297,608 474,925 - -
Capital grants and contributions 2,000,456 699,901 925,195 1,646,123 1,488,339 1,842,947 1,522,921 2,915,922 1,601,506 4,299,822
Total business-type activities
program revenues 13,149,053 12,695,193 13,460,709 14,578,674 15,890,567 16,760,001 17,309,761 19,055,706 17,211,522 19,989,439
Total primary government
program revenues 20,360,215$ 18,083,610$ 18,942,647$ 19,560,352$ 20,309,427$ 25,432,640$ 24,362,829$ 31,934,322$ 25,733,904$ 31,210,950$
(continued)
94
CITY OF MONTICELLO
Changes in Net Position
Last Ten Fiscal Years (continued)
(accrual basis of accounting)
2016 2017 2018 2019 2020 2021 2022 2023 2024 2025
Net (expense)/revenue
Governmental activities (8,113,275)$ (8,912,176)$ (9,976,752)$ (10,991,879)$ (11,995,317)$ (6,459,989)$ (9,610,118)$ (5,098,008)$ (10,202,979)$ (7,957,445)$
Business-type activities 1,659,906 1,081,752 1,200,596 2,446,562 2,061,092 2,916,975 2,818,911 4,802,815 3,306,938 5,991,642
Total primary government net expense (6,453,369)$ (7,830,424)$ (8,776,156)$ (8,545,317)$ (9,934,225)$ (3,543,014)$ (6,791,207)$ (295,193)$ (6,896,041)$ (1,965,803)$
General Revenues and Other
Changes in Net Position
Governmental activities
Taxes
Property taxes 9,270,592$ 9,560,482$ 9,972,166$ 10,375,714$ 10,874,313$ 11,180,595$ 11,456,764$ 12,163,726$ $13,241,788 14,129,819$
Tax increments 668,352 648,031 638,278 679,925 707,824 - - - - -
Sales taxes - - - - - - - - - 1,871,746
Franchise taxes 412,217 436,248 386,622 432,934 418,030 383,045 388,074 400,591 409,068 416,389
Unrestricted grants and
contributions - - - - 886,544 - - - - -
Investment earnings 375,614 379,107 364,364 969,216 666,325 (168,603) (915,858) 1,316,451 1,201,839 1,160,271
Other 11,180 - - - - - - - - -
Gain on sale of capital assets - 1,725 15,000 - - 271,840 - 33,950 - 29,582
Transfers 969,461 (550,265) 1,000,000 (2,223,245) 1,560,000 (200,000) - 3,614,311 1,100,000 446,986
Total governmental activities 11,707,416 10,475,328 12,376,430 10,234,544 15,113,036 11,466,877 10,928,980 17,529,029 15,952,695 18,054,793
Business-type activities
Franchise taxes - - - - - 53,942 53,000 20,587 12,510 -
Unrestricted grants and
contributions - - - - 151,794 - - - - -
Investment earnings 128,080 151,126 162,003 482,120 332,938 (101,693) (817,755) 1,237,097 1,498,907 1,669,399
Miscellaneous 5,218 - 379,246 - - - - - - -
Contribution of land to County - - - - - - - - - -
Transfer of operations 356,900 - - - - - - - - -
Internal transfers (969,461) 550,265 (1,000,000) 2,223,245 (1,560,000) 200,000 – (3,614,311) (1,100,000) (446,986)
Special item - - - - - - - - - 309,483
Total business-type activities (479,263) 701,391 (458,751) 2,705,365 (1,075,268) 152,249 (764,755) (2,356,627) 411,417 1,531,896
Total primary government 11,228,153$ 11,176,719$ 11,917,679$ 12,939,909$ 14,037,768$ 11,619,126$ 10,164,225$ 15,172,402$ 16,364,112$ 19,586,689$
Changes in Net Position
Governmental activities 3,594,141$ 1,563,152$ 2,399,678$ (757,335)$ 3,117,719$ 5,006,888$ 1,318,862$ 12,431,021$ 5,749,716$ 10,097,348$
Business-type activities 1,180,643 1,783,143 741,845 5,151,927 985,824 3,069,224 2,054,156 2,446,188 3,718,355 7,523,538
Total primary government 4,774,784$ 3,346,295$ 3,141,523$ 4,394,592$ 4,103,543$ 8,076,112$ 3,373,018$ 14,877,209$ 9,468,071$ 17,620,886$
Note 1: The city implemented GASB Statement No. 75 in fiscal year 2018. Prior years have not been adjusted to reflect these changes.
Note 2: The Economic Development Authority (EDA) was reclassified from a blended component unit to a discrete component unit in 2021. Prior years were not restated.
Note 3: The city created a new Stormwater enterprise fund in 2019. As part of creating the fund, all balances of the Storm Water Access capital projects fund were transferred to this fund.
95
CITY OF MONTICELLO
General Governmental Tax Revenues by Source
Last Ten Fiscal Years
(accrual basis of accounting)
Property Tax Franchise
Year Tax Increment Tax Total
2016 9,270,592$ 668,352$ 412,217$ 9,744,686$
2017 9,560,482 648,031 436,248 10,351,161
2018 9,972,166 638,278 386,622 10,644,761
2019 10,375,714 679,925 432,934 10,997,066
2020 10,874,313 707,824 418,030 11,488,573
2021 11,180,595 - 383,045 12,000,167
2022 11,456,764 - 388,074 11,563,640
2023 12,163,726 - 400,591 11,844,838
2024 13,241,788 - 409,068 12,564,317
2025 14,129,819 - 416,389 14,546,208
Change
2016-2025 52.4%-100.0%1.0%49.3%
Note 1: The Economic Development Authority (EDA) Fund was reclassified from a blended component unit to a discrete
component unit in 2021. Tax increments are no longer reported in primary government. Prior years were not restated.
Source: Finance Department
$-
$2
$4
$6
$8
$10
$12
$14
$16
2016 2017 2018 2019 2020 2021 2022 2023 2024 2025
Mi
l
l
i
o
n
s
Tax Revenues by Source
Property Tax
Tax Increment
Franchise Tax
96
CITY OF MONTICELLO
Fund Balances of Governmental Funds
Last Ten Fiscal Years
(modified accrual basis of accounting)
2016 2017 2018 2019 2020 2021 2022 2023 2024 2025
General Fund
Nonspendable 134,245$ 110,869$ 124,650$ 135,139$ 145,603$ 142,846$ 113,530$ 122,287$ 168,889$ 318,794$
Restricted - - - - - - - 639,732 - -
Unassigned 6,142,475 6,918,224 6,984,828 6,542,111 6,494,632 6,481,936 6,929,266 7,416,654 7,955,402 8,328,616
Total general fund 6,276,720$ 7,029,093$ 7,109,478$ 6,677,250$ 6,640,235$ 6,624,782$ 7,042,796$ 8,178,673$ 8,124,291$ 8,647,410$
All other governmental funds
Nonspendable 3,690,330$ 23,488$ 47,614$ 72,028$ 27,600$ 29,474$ 26,450$ 30,255$ 32,543$ 39,676$
Restricted 6,987,234 7,924,461 5,867,997 7,567,522 5,008,177 2,948,572 2,090,545 1,973,090 1,803,916 3,651,747
Assigned 13,320,718 16,910,080 17,145,463 21,227,605 24,358,352 13,684,148 13,757,727 12,631,948 11,827,252 10,377,322
Total all other
governmental funds 23,998,282$ 24,858,029$ 23,061,074$ 28,867,155$ 29,394,129$ 16,662,194$ 15,874,722$ 14,635,293$ 13,663,711$ 14,068,745$
Note 1: The Economic Development Authority Fund was reclassified from a blended component unit to a discrete component unit in 2021. Tax increments are no longer reported in primary government. Prior years were not restated.
97
CITY OF MONTICELLO
Changes in Fund Balances of Governmental Funds
Last Ten Fiscal Years
(modified accrual basis of accounting)
2016 2017 2018 2019 2020 2021 2022 2023 2024 2025
Revenues
Property taxes 9,295,983$ 9,593,445$ 9,967,550$ 10,375,468$ 10,860,311$ 11,196,762$ 11,435,128$ 12,120,024$ 13,233,182$ 14,108,190$
Tax increments 668,352 648,031 638,278 679,925 707,824 - - - - -
Sales taxes - - - - - - - - - 1,871,746
Franchise taxes 412,217 436,248 386,622 432,934 418,030 383,045 388,074 400,591 409,068 416,389
Special assessments 984,390 946,669 700,190 712,681 633,016 1,699,141 718,773 1,185,631 1,177,064 539,375
Licenses and permits 668,602 600,933 504,464 603,925 521,369 804,889 613,014 930,901 924,801 903,899
Intergovernmental 2,041,362 1,340,094 911,477 896,638 1,656,228 3,912,067 1,741,507 2,226,991 1,992,951 1,507,472
Charges for services 2,222,475 1,909,357 2,098,362 2,297,568 1,474,527 2,099,582 2,646,202 2,836,161 4,436,966 3,780,407
Fines and forfeitures 30,656 36,702 45,350 40,054 31,852 49,566 36,808 52,413 65,940 89,628
Investment earnings 357,112 364,786 351,620 930,128 641,446 (164,300) (845,528) 1,234,053 1,137,121 1,082,339
Interest on loans - - - 10,929 8,635 4,392 3,873 3,082 2,838 2,276
Other revenues 589,394 335,530 302,469 436,264 521,109 1,046,419 1,204,820 3,267,273 998,313 1,251,400
Total revenues 17,270,543 16,211,795 15,906,382 17,416,514 17,474,347 21,031,563 17,942,671 24,257,120 24,378,244 25,553,121
Expenditures
General government 1,489,892 1,617,680 1,656,557 1,777,352 2,170,661 2,639,420 2,684,854 2,696,531 2,990,174 3,228,527
Public safety 2,036,777 2,178,728 2,354,453 2,449,765 2,743,954 2,874,183 2,989,883 3,263,979 3,923,882 4,045,498
Public works 1,941,750 2,009,481 2,079,305 2,393,638 1,899,315 2,123,898 2,406,209 2,609,129 2,648,079 2,722,119
Sanitation 600,300 614,328 615,586 610,944 681,948 754,132 784,052 817,199 911,886 941,458
Transit 41,250 3,191 18,333 - - - - - - -
Recreation and culture 2,756,372 2,940,313 3,034,496 3,137,153 2,614,095 2,708,575 3,483,340 4,097,541 4,202,774 4,689,334
Economic development 530,746 486,706 1,210,053 871,950 1,917,973 - - - - -
Capital outlay 6,235,029 5,430,272 9,708,481 7,941,452 4,910,889 7,405,428 2,999,832 12,304,059 8,720,379 6,889,699
Debt service -
Principal 5,681,653 3,921,000 2,285,000 2,855,000 3,385,000 6,555,000 2,315,000 2,160,000 2,205,000 2,260,000
Interest and fiscal charges 529,116 470,508 522,220 634,241 756,908 697,793 498,959 446,184 402,034 350,333
Bond issuance costs 107,050 93,300 94,350 138,350 53,475 - - - - -
Total expenditures 21,949,935 19,765,507 23,578,834 22,809,845 21,134,218 25,758,429 18,162,129 28,394,622 26,004,208 25,126,968
Excess of revenues
over (under) expenditures (4,679,392) (3,553,712) (7,672,452) (5,393,331) (3,659,871) (4,726,866) (219,458) (4,137,502) (1,625,964) 426,153
Other financing sources (uses)
Long-term debt issued 4,900,000 5,000,000 5,000,000 8,000,000 2,155,000 - - - - -
Premium (discount) on debt issued 97,503 78,814 40,882 131,662 101,280 - - - - -
Sale of capital assets 11,180 1,725 15,000 29,340 333,550 271,840 - 33,950 - -
Transfers in 2,192,636 1,029,628 2,082,845 5,928,040 2,760,000 6,977,964 108,801 4,750,000 1,800,000 1,834,951
Transfers out (1,223,175) (944,335) (1,182,845) (3,321,858) (1,200,000) (8,751,621) (258,801) (750,000) (1,200,000) (1,332,951)
Total other financing sources (uses)5,978,144 5,165,832 5,955,882 10,767,184 4,149,830 (1,501,817) (150,000) 4,033,950 600,000 502,000
Net change in fund balances 1,298,752$ 1,612,120$ (1,716,570)$ 5,373,853$ 489,959$ (6,228,683)$ (369,458)$ (103,552)$ (1,025,964)$ 928,153$
Debt service as percentage
of noncapital expenditures 38.0% 30.4% 20.1% 26.4% 24.9% 39.2% 18.2% 16.1% 15.0% 14.2%
Note 1: The city redeemed the judgment portion of the 2014A bonds early in 2021.
98
CITY OF MONTICELLO
Governmental Funds Tax Revenues by Source
Last Ten Fiscal Years
(modified accrual basis of accounting)
Property Tax Franchise
Year Tax Increment Tax Total
2016 9,295,983$ 668,352$ 412,217$ 10,376,552$
2017 9,593,445 648,031 436,248 10,677,724
2018 9,967,550 638,278 386,622 10,992,450
2019 10,375,468 679,925 432,934 11,488,327
2020 10,860,311 707,824 418,030 11,986,165
2021 11,196,762 - 383,045 11,579,807
2022 11,435,128 - 388,074 11,823,202
2023 12,120,024 - 400,591 12,520,615
2024 13,233,182 - 409,068 13,642,250
2025 14,108,190 - 416,389 14,524,579
Change
2016-2025 51.8% -100.0% 1.0% 40.0%
Note 1: The Economic Development Authority (EDA) Fund was reclassified from a blended component unit to a discrete
component unit in 2021. Tax increments are no longer reported in primary government. Prior years were not restated.
Source: Finance Department
$-
$2
$4
$6
$8
$10
$12
$14
$16
2016 2017 2018 2019 2020 2021 2022 2023 2024 2025
Mi
l
l
i
o
n
s
Tax Revenues by Source
Property Tax
Tax Increment
Franchise Tax
99
CITY OF MONTICELLO
Tax Capacity Value and Estimated Market Value of Taxable Property
Last Ten Fiscal Years
Total Net Tax
Taxable Net Capacity as a
Fiscal Residential % of Commercial % of Personal % of Ag/Misc % of Tax Capacity % of Total Direct Total Percentage of
Year Property Total Property Total Property Total Property Total Value Total Tax Rate Market Value Market Value
2016 6,505,649$ 23.0%21,386,874$ 75.6%248,668$ 0.9%166,437$ 0.6% 28,307,628$ 100.0%34.471 1,828,437,600$ 1.5%
2017 7,325,880 24.2%22,510,588 74.4%272,344 0.9%141,596 0.5% 30,250,408 100.0%33.172 1,962,020,100 1.5%
2018 8,086,159 27.1%21,262,918 71.4%286,580 1.0%148,899 0.5% 29,784,556 100.0%32.333 1,974,154,400 1.5%
2019 8,924,604 29.2%21,267,629 69.5%274,720 0.9%143,962 0.5% 30,610,915 100.0%34.262 2,054,313,700 1.5%
2020 9,422,801 29.6%21,941,590 69.0%296,422 0.9%135,311 0.4% 31,796,124 100.0%34.967 2,135,371,400 1.5%
2021 10,298,432 32.4%21,153,822 66.5%188,572 0.6%187,144 0.6% 31,827,970 100.0%35.659 2,173,573,500 1.5%
2022 12,798,435 36.3%22,043,296 62.5%213,032 0.6%223,509 0.6% 35,278,272 100.0%36.536 2,466,129,200 1.4%
2023 14,875,755 39.0%22,849,158 59.9%187,532 0.5%256,634 0.7% 38,169,079 100.0%34.991 2,702,176,000 1.4%
2024 14,619,722 38.4%22,987,924 60.3%234,176 0.6%264,330 0.7% 38,106,152 100.0%34.547 2,727,750,300 1.4%
2025 15,834,658 38.6%24,740,081 60.3%244,974 0.6%223,778 0.5% 41,043,491 100.0%37.701 2,922,471,600 1.4%
Note 1: The fiscal year is for the values in the year levied (for taxes collectible in the following year).
Note 2: Tax exempt property values are not included in total taxable net tax capacity value.
Source: Wright County Certificate as to Taxes and Taxable Property in the City of Monticello, MN
Real Property
$-
$5
$10
$15
$20
$25
$30
$35
$40
$45
2016 2017 2018 2019 2020 2021 2022 2023 2024 2025
Mi
l
l
i
o
n
s
Total Taxable Net Tax Capacity Value
(Excludes Personal and Ag/Misc Property)
Residential
Commercial
100
CITY OF MONTICELLO
Property Tax Rates - All Direct and Overlapping Governments
Last Ten Fiscal Years
Monticello Total (1)
City Wright School Special Direct and
Year of Monticello County District #882 Districts Overlapping
2016 34.47 39.97 20.86 1.08 96.38
2017 33.17 39.60 16.24 1.02 90.03
2018 32.33 39.95 15.62 1.09 89.00
2019 34.26 44.27 19.97 1.20 99.70
2020 34.97 44.42 15.87 1.18 96.44
2021 35.66 43.72 15.39 1.18 95.95
2022 36.54 43.75 15.46 1.25 97.00
2023 34.99 37.85 12.87 1.17 86.88
2024 34.55 33.74 13.52 1.19 83.00
2025 37.70 35.56 13.63 1.33 88.22
Note 1:
Source: Wright County
Overlapping Taxing Districts
Information reflects total tax rates levied by each entity. Tax rates are expressed in terms of “net tax capacity.” A
property’s tax capacity is determined by multiplying its taxable market value by a state determined class rate. Class
rates vary by property type and change periodically based on state legislation. Components of the direct rate are not
readily available.
0
5
10
15
20
25
30
35
40
45
50
2016 2017 2018 2019 2020 2021 2022 2023 2024 2025
Ra
t
e
%
Property Tax Rates
For the three highest taxing authorities
Wright
County
School
District
#882
City of
Monticello
101
CITY OF MONTICELLO
Property Tax Levies and Collections
Last Ten Fiscal Years
PROPERTY TAXES
Net Tax Collections in Abatements
Fiscal Levy for % of Subsequent % of and % of
Year Fiscal Year Amount Net Levy Years Amount Net Levy Adjustments Amount Net Levy
2016 9,205,700$ 9,177,787$ 99.7% 24,483$ 9,202,270$ 100.0% (3,430)$ -$ 0.0%
2017 9,430,000 9,416,303 99.9% 12,151 9,428,454 100.0% (1,546) - 0.0%
2018 9,870,000 9,850,163 99.8% 11,274 9,861,437 99.9% (8,563) - 0.0%
2019 10,310,000 10,289,339 99.8% 20,661 10,310,000 100.0%- - 0.0%
2020 10,800,000 10,770,454 99.7% (1,503) 10,768,951 99.7% (31,049) - 0.0%
2021 11,063,700 11,053,758 99.9% 11,789 11,065,547 100.0% 2,007 160 0.0%
2022 11,353,000 11,314,942 99.7% (2,916) 11,312,026 99.6% (39,113) 1,861 0.0%
2023 12,050,000 12,025,700 99.8% 10,031 12,035,731 99.9% 6,057 20,326 0.2%
2024 13,074,000 13,012,503 99.5% 30,133 13,042,636 99.8% 2,509 33,873 0.3%
2025 14,117,000 14,031,836 99.4%- 14,031,836 99.4% (13,596) 71,568 0.5%
Source: Wright County
Collected within the Total Collections
Year of the Net Levy to Date Total Uncollected
102
CITY OF MONTICELLO
Principal Property Taxpayers
Current Year and Nine Years Ago
Percentage Percentage
Taxable Total Taxable Total
(1)Net Tax Net Tax Net Tax Net Tax
Market Capacity Capacity Market Capacity Capacity
Taxpayer Value Value Rank Value Value Value Rank Value
Xcel Energy (Northern States)782,296,000$ 15,627,011$ 1 38.1% 795,999,400$ 15,913,229$ 1 56.2%
IRET Properties 46,004,400 575,055 2 1.4%
Monticello Lakes LLC 40,163,700 502,046 3 1.2%
Deephaven Development LLC 32,764,500 410,967 4 1.0%
Mills Fleet Farm (Venturian Holdings)16,173,600 320,472 5 0.8%
Block 52 Holdings 20,479,600 278,548 6 0.7%
Target Corporation 12,683,500 252,920 7 0.6%10,120,400 201,658 3 0.7%
CentraCare (Monti-Big Lake Comm Hosp) 12,426,300 247,776 8 0.6%7,444,000 148,880 4 0.5%
Clear Creek Land Company, LLC 12,483,300 248,166 9 0.6%
Walmart Real Estate Bus Trust 12,027,900 239,808 10 0.6%10,520,000 209,650 2 0.7%
UMC Real Estate LLC
Home Depot USA, Inc.6,720,700 133,664 5 0.5%
Spirit Master Funding (Muller Theatres)5,401,300 106,895 6 0.4%
AX TC Retail, LP 5,154,900 101,598 7 0.4%
Tapper's Holdings, LLC 3,956,800 77,636 8 0.3%
WSI Industries inc.3,900,100 77,252 9 0.3%
Minnegasco Inc. 3,860,100 77,202 10 0.3%
987,502,800$ 18,702,769$ 45.6% 853,077,700$ 17,047,664$ 60.2%
(1) The market value and taxable net tax capacity value is for taxes levied in 2025, which are payable in 2026.
Source: Wright County Certificate as to Taxes and Taxable Property in the City of Monticello, MN and 2016 City of Monticello Annual Comprehensive Financial Report
2025 2016
103
CITY OF MONTICELLO
New Construction and Bank Deposits
Last Ten Fiscal Years
New New New New Total New
Commercial Commercial Residential Residential Residential &Percent
Year Permits Value Permits Value Commercial Total (1) Change
2016 7 19,425,000$ 61 12,750,071$ 32,175,071$ 1,643,984$ 5.5%
2017 3 3,270,264 64 13,358,118 16,628,382 1,765,565 7.4%
2018 4 6,783,829 58 12,148,575 18,932,404 1,827,691 3.5%
2019 4 7,228,571 56 10,712,880 17,941,451 1,915,042 4.8%
2020 1 1,050,000 68 12,473,308 13,523,308 2,387,138 24.7%
2021 4 6,112,240 95 21,993,822 28,106,062 2,736,992 14.7%
2022 5 23,075,719 35 9,763,675 32,839,394 2,828,229 3.3%
2023 7 21,060,426 46 38,596,935 59,657,361 2,737,682 -3.2%
2024 7 3,774,000 84 15,682,599 19,456,599 2,883,779 5.3%
2025 7 21,522,384 66 16,140,222 37,662,606 2,911,780 1.0%
(1) Reported for Wright County as of June 30
Source: City of Monticello building department and FDIC Market Share Reports
Bank Deposits (000s)Building Permits
$-
$5,000,000
$10,000,000
$15,000,000
$20,000,000
$25,000,000
$30,000,000
$35,000,000
$40,000,000
2016 2017 2018 2019 2020 2021 2022 2023 2024 2025
New Residential and Commercial Construction
Residential
Commercial
104
CITY OF MONTICELLO
Water Sold by Customer Type
Last Ten Fiscal Years
(gallons)
Total
% of % of % of % of Water % of
Year Residential Total Commercial Total Industrial Total Government Total Sold Total
2016 329,068,876 67.7%77,795,226 16.0%42,407,860 8.7%36,647,583 7.5%485,919,545 100.0%
2017 371,596,967 67.7%93,770,712 17.1%43,220,312 7.9%40,409,649 7.4%548,997,640 100.0%
2018 352,322,681 67.3%89,911,481 17.2%43,067,083 8.2%38,128,401 7.3%523,429,646 100.0%
2019 307,411,101 64.0%93,783,767 19.5%44,120,527 9.2%35,187,913 7.3%480,503,308 100.0%
2020 392,258,038 70.1%92,058,431 16.5%39,630,515 7.1%35,351,965 6.3%559,298,949 100.0%
2021 442,964,466 71.6%97,483,202 15.8%39,768,999 6.4%38,252,736 6.2%618,469,403 100.0%
2022 409,192,333 69.5%96,391,875 16.4%45,202,637 7.7%37,749,850 6.4%588,536,695 100.0%
2023 435,136,857 69.2%106,026,233 16.9%46,522,096 7.4%40,900,149 6.5%628,585,335 100.0%
2024 367,079,894 66.1%97,349,826 17.5%52,425,604 9.4%38,102,757 6.9%554,958,081 100.0%
2025 394,352,759 61.5%99,650,478 15.5%107,526,883 16.8%39,846,255 6.2%641,376,375 100.0%
Source: City of Monticello utility billing department
0
100
200
300
400
500
600
700
2016 2017 2018 2019 2020 2021 2022 2023 2024 2025
Mi
l
l
i
o
n
s
Water Sold by Customer Type (gallons)
Government
Industrial
Commercial
Residential
105
CITY OF MONTICELLO
Water and Sewer Utility Rates
Last Ten Fiscal Years
2016 2017 2018 2019 2020 2021 2022 2023 2024 2025
Water Fund
Residential & Commercial
Base Rate - First 500 CF 18.85$ -$ -$ -$ -$ -$ -$ -$ -$ -$
501 - 4000 per 100 CF 1.22 - - - - - - - - -
4,001 - 13,369 per 100 CF 1.41 - - - - - - - - -
Over 13,369 per 100 CF 1.50 - - - - - - - - -
Residential
Base Rate - First 1,000 gal - 6.45 6.95 7.10 7.10 7.81 8.04 8.68 9.37 10.31
1,001 - 6,500 per 1,000 gal - 1.66 1.70 1.74 1.74 1.83 1.88 2.03 2.19 2.41
6,501 - 10,000 per 1,000 gal - 1.66 1.70 1.74 1.74 1.83 1.88 2.35 2.54 2.79
10,001 - 11,500 per 1,000 gal - 1.92 1.97 2.02 2.02 2.12 2.18 2.35 2.54 2.79
11,501 - 16,500 per 1,000 gal - 1.92 1.97 2.02 2.02 2.12 2.18 2.58 2.79 3.07
16,501 - 33,000 per 1,000 gal - 1.92 1.97 2.02 2.02 2.12 2.18 2.80 3.02 3.32
Over 33,000 per 1,000 gal - 2.09 2.15 2.21 2.21 2.32 2.39 3.00 3.24 3.56
State Connection Fee - - - - 0.81 0.81 0.81 0.81 0.81 0.81
Commercial
Base Rate - First 1,000 gal - 6.45 6.95 7.10 7.10 7.81 8.04 8.68 9.37 10.31
1,001 - 6,500 per 1,000 gal - 1.66 1.70 1.74 1.74 1.83 1.88 2.03 2.19 2.41
6,501 - 10,000 per 1,000 gal - 1.66 1.70 1.74 1.74 1.83 1.88 2.35 2.54 2.79
10,001 - 11,500 per 1,000 gal - 1.92 1.97 2.02 2.02 2.12 2.18 2.35 2.54 2.79
11,501 - 16,500 per 1,000 gal - 1.92 1.97 2.02 2.02 2.12 2.18 2.35 2.54 2.79
16,501 - 33,000 per 1,000 gal - 1.92 1.97 2.02 2.02 2.12 2.18 2.35 2.54 2.79
Over 33,000 per 1,000 gal - 2.09 2.15 2.21 2.21 2.32 2.39 2.58 2.79 3.07
State Connection Fee - - - - 0.81 0.81 0.81 0.81 0.81 0.81
Sewer Fund
Residential & Commercial
Base Rate - First 500 CF 22.69 - - - - - - - - -
Over 500 per 100 CF 3.97 - - - - - - - - -
Residential & Commercial
Base Rate - First 1,000 gal - 8.05 8.75 9.00 9.18 10.10 10.40 10.61 10.93 11.20
Over 1,000 per 1,000 gal - 5.48 5.63 5.77 5.89 6.19 6.38 6.51 6.71 6.88
Note 1: The City began billing monthly in 2017 and transitioned from billing per cubic foot (CF) to billing per gallon (gal).
Note 2: Usage levels per tier were changed in 2023.
106
CITY OF MONTICELLO
Ratios of Outstanding Debt by Type
Last Ten Fiscal Years
2016 2017 2018 2019 2020 2021 2022 2023 2024 2025
Governmental activities
General obligation bonds
Special assessment 12,730,000$ 12,695,000$ 10,925,000$ 9,200,000$ 9,290,000$ 8,050,000$ 6,780,000$ 5,680,000$ 4,560,000$ 3,415,000$
Other 7,686,000 5,785,000 5,375,000 11,600,000 10,770,000 5,960,000 5,435,000 4,905,000 4,365,000 3,875,000
Tax abatement - 2,960,000 7,800,000 8,390,000 7,845,000 7,280,000 6,700,000 6,110,000 5,505,000 4,880,000
Net premium (discount)159,266 128,336 105,777 69,187 44,028 18,869 - - - -
Total GO bonds 20,575,266 21,568,336 24,205,777 29,259,187 27,949,028 21,308,869 18,915,000 16,695,000 14,430,000 12,170,000
Certificates of indebtedness 265,000 200,000 135,000 70,000 - - - - - -
Total governmental activities 20,840,266$ 21,768,336$ 24,340,777$ 29,329,187$ 27,949,028$ 21,308,869$ 18,915,000$ 16,695,000$ 14,430,000$ 12,170,000$
Business-type activities
General obligation
revenue bonds 2,930,347$ 2,460,000$ 2,280,000$ 2,095,000$ 1,910,000$ 1,720,000$ 1,525,000$ 1,325,000$ 910,000$ 695,000$
Non-general obligation
PFA notes 615,268 1,927,850 1,998,402 1,903,000 1,800,000 1,696,000 1,591,000 1,485,000 1,270,000 1,161,000
Net premium (discount)30,339 27,354 23,495 21,510 19,524 17,539 15,553 - - -
Total business-type activities 3,575,954$ 4,415,204$ 4,301,897$ 4,019,510$ 3,729,524$ 3,433,539$ 3,131,553$ 2,810,000$ 2,180,000$ 1,856,000$
Total primary government 24,416,220$ 26,183,540$ 28,642,674$ 33,348,697$ 31,678,552$ 24,742,408$ 22,046,553$ 19,505,000$ 16,610,000$ 14,026,000$
% of personal income (1)3.9%4.0%4.2%4.6%3.9%2.8%2.3%2.1%1.7% Not Available
Per capita debt (1)1,836$ 1,953$ 2,113$ 2,420$ 2,281$ 1,712$ 1,508$ 1,293$ 1,119$ 907$
(1) See the Schedule of Demographic and Economic Statistics.
Source: Details regarding the city’s outstanding debt can be found in the notes to basic financial statements.
107
CITY OF MONTICELLO
Ratios of Net General Obligation Bonded Debt Outstanding
Last Ten Fiscal Years
Percentage of
Less Net Estimated
General Position Actual Market
Obligation Restricted for Value of
Year Bonds (1) Debt Service Total Property (2) Per Capita (3)
2016 23,327,620$ 7,009,231$ 16,318,389$ 0.89%1,227$
2017 24,071,831 6,359,147 17,712,684 0.90%1,321
2018 26,457,287 6,082,504 20,374,783 1.03%1,503
2019 31,258,711 5,251,080 26,007,631 1.27%1,887
2020 29,686,567 2,565,047 27,121,520 1.27%1,953
2021 22,849,422 2,185,818 20,663,604 0.95%1,430
2022 20,240,000 2,237,657 18,002,343 0.73%1,231
2023 17,815,000 2,322,454 15,492,546 0.57%1,027
2024 15,340,000 1,273,938 14,066,062 0.52%948
2025 12,865,000 949,682 11,915,318 0.41%771
(1) Does not include revenue bonds.
(2) See the Schedule of Taxable Net Tax Capacity Value and Estimated Market Value of Taxable Property for the estimated actual market value.
(3) See the Schedule of Demographic and Economic Statistics.
Source: Details regarding the city’s outstanding debt can be found in the notes to basic financial statements.
108
CITY OF MONTICELLO
Legal Debt Margin Information
Last Ten Fiscal Years
2016 2017 2018 2019 2020 2021 2022 2023 2024 2025
54,853,128$ 58,860,603$ 59,224,632$ 61,629,411$ 64,061,142$ 65,207,205$ 73,983,876$ 81,065,280$ 81,832,509$ 87,674,148$
Total net debt
applicable to
debt limit 7,951,000 8,945,000 13,310,000 20,060,000 14,390,000 9,215,000 8,315,000 7,400,000 6,470,000 7,980,000
Legal debt margin 46,902,128$ 49,915,603$ 45,914,632$ 41,569,411$ 49,671,142$ 55,992,205$ 65,668,876$ 73,665,280$ 75,362,509$ 79,694,148$
Total net debt
applicable to
debt limit as a
percentage
of debt limit 14.5%15.2%22.5%32.5%22.5%14.1%11.2%9.1%7.9%9.1%
Market value for fiscal year 2024 (payable 2025)2,922,471,600$
Debt limit (3% of market value)87,674,148$
Debt applicable to limit
General obligation bonds 12,865,000$
Less amounts for general obligation bonds
not subject to debt limit (4,885,000)
Total net debt applicable to limit 7,980,000
Legal debt margin 79,694,148$
Source: Details regarding the city’s outstanding debt can be found in the notes to basic financial statements. Market value data provided in Wright County Certificate of Taxes and Taxable Properties.
Legal Debt Margin Calculation
Fiscal Year
Legal debt limit
109
CITY OF MONTICELLO
Computation of Direct and Overlapping Debt
As of December 31, 2025
Estimated
Gross Percentage Amount
Bonded Debt Applicable Applicable to
Jurisdiction Outstanding to City (1)City
DIRECT DEBT:
City of Monticello 12,170,000$ 100.0% 12,170,000$
OVERLAPPING DEBT:
I.S.D. 882 36,085,000 73.2% 26,414,220
Wright County 111,845,000 13.3% 14,875,385
Total Overlapping Debt 41,289,605
Total direct and overlapping debt 53,459,605$
(1)
Note:
Source: The Wright County auditor provided the debt outstanding and estimated applicable percentages for the school district and county.
The percentage of overlapping debt applicable is estimated using taxable assessed property values. Applicable percentages were
estimated by determining the portion of the government’s taxable assessed value that is within the City’s boundaries and dividing it by
the government’s total taxable assessed value.
Overlapping governments are those that coincide, at least in part, with the geographic boundaries of the City. This schedule estimates
the portion of the outstanding debt of those overlapping governments that is borne by the residents and businesses of the City. This
process recognizes that, when considering the government’s ability to issue and repay long-term debt, the entire debt burden borne by
the residents and businesses should be taken into account. However, this does not imply that every taxpayer is a resident and,
therefore, responsible for repaying the debt of each overlapping government.
110
CITY OF MONTICELLO
Schedule of General Obligation Revenue Bond Coverage
Last Ten Fiscal Years
Sewer Fund:
Net Revenue
Gross Operating Available for
Year Revenues (1) Expenses (2) Debt Service Principal Interest Total Coverage
2016 2,223,252$ 1,411,831$ 811,421$ 570,830$ 78,002$ 648,832$ 125.1%
2017 2,472,774 1,552,617 920,157 289,000 63,823 352,823 260.8%
2018 2,581,833 1,674,428 907,405 287,149 81,125 368,274 246.4%
2019 2,443,856 1,596,714 847,142 288,000 76,826 364,826 232.2%
2020 2,559,354 1,663,234 896,120 294,000 72,972 366,972 244.2%
2021 2,686,445 1,777,133 909,312 300,000 67,126 367,126 247.7%
2022 2,925,917 1,980,086 945,831 306,000 61,817 367,817 257.1%
2023 3,014,189 1,965,772 1,048,417 312,000 56,041 368,041 284.9%
2024 3,162,560 1,825,508 1,337,052 318,000 50,123 368,123 363.2%
2025 3,367,698 2,273,577 1,094,121 324,000 42,725 366,725 298.3%
(1) Total revenues does not include investment earnings.
(2) Total operating expenses excluding depreciation.
Source: Finance Department
Debt Service Requirements (3)
111
CITY OF MONTICELLO
Demographic and Economic Statistics
Last Ten Fiscal Years
Per
Estimated Capita
Unemployment School Personal Personal
Year Population (1) rate (2) Enrollment (3) Income (4) Income (5)
2016 13,299 4.3%4,027 621,989,874$ 46,386$
2017 13,409 3.6%4,075 648,551,709 47,853
2018 13,553 3.6%4,158 689,237,820 50,010
2019 13,782 3.7%4,053 720,405,680 51,880
2020 13,886 4.7%4,099 819,641,865 56,703
2021 14,455 2.8%4,113 882,870,648 60,392
2022 14,619 3.3%4,206 943,827,633 62,559
2023 15,087 2.8%4,237 939,029,967 62,241
2024 14,840 2.7%4,260 987,958,160 66,574
2025 15,464 4.4%4,290 Not Yet Available Not Yet Available
(1) Minnesota State Demographic Center population estimates. The 2023 estimate was determined to be high but was not adjusted.
(2)
(3)
(4)
(5)
ISD No. 882 enrollment information was obtained from the District's Financial Report for the year ended June 30, 2024.
This estimated personal income number is calculated by taking the per capita personal income and multiplying it by the City’s
population. Also see note (5) regarding the per capita personal income figures.
Per capita personal income data is provided by the Bureau of Economic Analysis. Monticello's estimates are based on Wright
County information. Wright County, where Monticello is located, is the smallest, relevant statistical tracking area. Data is subject to
annual revisions by the Bureau of Economic Analysis.
Annual average unemployment rate for Wright County provided by the Minnesota Department of Employment & Economic
Development.
112
CITY OF MONTICELLO
Principal Employers
Current Year and Nine Years Ago
Percentage of Percentage of
Total City Total City
Employer Employees Rank Employment (1) Employees Rank Employment (1)
ISD No. 882 (Monticello)684 1 8.2%544 2 7.7%
Xcel Energy (Northern States)650 2 7.8%700 1 9.9%
CentraCare Medical Center (New River) 577 3 6.9%500 3 7.1%
Cargill Kitchen Solutions (Sunny Fresh) 425 4 5.1%450 4 6.4%
Target 307 5 3.7%
Wal-Mart Supercenter 225 6 2.7%325 5 4.6%
Ultra Machine Corporation 215 7 2.6%173 7 2.4%
City of Monticello 176 8 2.1%150 9 2.1%
Home Depot 157 9 1.9%160 8 2.3%
WSI Industries, Inc.120 10 1.4%100 10 1.4%
Cub Foods 180 6 2.5%
3,536 50.1%3,282 46.5%
Source: City of Monticello Employment Survey and 2016 City of Monticello ACFR.
2025 2016
(1) The city estimates its workforce by using the city's percentage of total county population and multiplying that number by the county's total
workforce.
113
CITY OF MONTICELLO
City Government Employees by Function/Program
Last Ten Fiscal Years
2016 2017 2018 2019 2020 2021 2022 2023 2024 2025
Employees by function
General Fund
General government 13.50 11.50 11.50 11.50 11.75 9.50 10.70 11.15 10.50 11.00
Public safety
Building 4.00 4.00 3.00 3.00 3.00 3.00 4.20 5.20 5.20 5.30
Fire 3.80 3.80 3.80 3.80 3.80 4.80 4.90 3.90 3.95 4.05
Public works
Engineering 1.00 1.00 2.00 2.00 2.00 3.25 2.65 2.65 1.55 1.55
Maintenance(1)18.50 10.50 9.50 9.60 8.80 7.80 8.00 8.40 8.95 8.25
Recreation and culture
Parks (1)5.00 13.00 10.00 8.90 9.90 9.60 10.30 10.10 10.45 11.90
Community development 1.00 1.00 1.00 1.00 1.00 1.00 1.00 1.00 1.00 1.00
Special Revenue Funds
Recreation and culture
Community center - FT 7.50 7.50 7.50 7.50 7.50 6.00 6.00 6.00 6.00 6.00
Community center - PT(2)36.50 38.10 37.30 35.00 14.70 7.40 12.05 14.75 16.25 19.90
Enterprise Funds
Utilities 5.00 6.00 6.00 6.50 6.50 8.65 8.75 8.90 7.35 7.35
Stormwater - - - - - - - - 1.55 1.55
Deputy registrar 5.00 7.50 7.00 7.60 6.80 7.50 8.35 7.55 7.12 8.15
Liquor store 11.50 12.40 13.10 14.20 11.90 10.20 10.95 11.65 10.49 12.15
Internal Services Funds
Facilities maintenance - - - - - 0.50 1.10 1.10 1.10 2.00
Information technology - - - - - 0.40 1.00 1.00 1.00 1.00
Discrete Component Unit Fund
Economic Development 1.00 1.00 1.00 1.00 1.20 1.20 1.50 1.60 1.60 2.00
Total 113.30 117.30 112.70 111.60 88.85 80.80 91.45 94.95 94.06 103.15
Employees by fund type
General Fund 46.80 44.80 40.80 39.80 40.25 38.95 41.75 42.40 41.60 43.05
Special Revenue Funds 44.00 45.60 44.80 42.50 22.20 13.40 18.05 20.75 22.25 25.90
Enterprise Funds 21.50 25.90 26.10 28.30 25.20 27.25 30.15 30.20 28.61 32.20
Discrete Component Unit Fund 1.00 1.00 1.00 1.00 1.20 1.20 1.50 1.60 1.60 2.00
113.30 117.30 112.70 111.60 88.85 80.80 91.45 94.95 94.06 103.15
FT = Full-time PT = Part-time
(1) Includes seasonal employees
(2) Reduction in 2020 was due to COVID-19 pandemic.
(3) Management and operations were contracted out beginning July 1, 2016.
Source: City of Monticello Human Resources Department
Fiscal Year
114
CITY OF MONTICELLO
Operating Indicators by Function
Last Ten Fiscal Years
2016 2017 2018 2019 2020 2021 2022 2023 2024 2025
Function
Fire
Calls for service 270 312 269 294 272 373 384 389 395 406
Public works
Salt (tons)525 461 585 752 730 700 600 620 277 514
Sand (tons)300 397 329 432 400 - 24 29 35 -
Crack sealant (pounds)49,039 46,721 46,868 47,176 44,456 18,276 - - - 12,500
Asphalt repairs (tons of asphalt)220 167 164 492 443 527 664 1,053 699 1,451
Recreation and culture
Shade trees planted 280 320 305 314 220 300 75 75 150 308
Diseased trees removed 60 40 12 15 6 25 15 20 60 49
Trails maintained (miles)20 40 40 41 41 42 43 43 47 51
Program sales 193,628$ 162,461$ 183,194$ 112,506$ 17,930$ 44,837$ 62,486$ 50,276$ 61,504$ 76,082$
Rental revenue 168,353$ 190,343$ 199,200$ 197,351$ 73,096$ 136,722$ 183,114$ 187,166$ 219,607$ 220,565$
Library
Items checked out 190,433 182,986 182,691 171,460 112,334 143,223 138,428 134,747 123,337 118,904
Programs offered 212 290 287 243 102 104 133 134 122 140
Program participants 4,306 5,336 5,059 4,788 4,810 1,772 3,317 2,801 1,734 1,684
Economic development
Permits issued 802 911 856 837 957 1,008 909 1,122 2,275 1,839
Permit valuation 59,426,683$ 43,853,123$ 33,125,788$ 45,723,446$ 32,453,366$ 66,827,121$ 41,989,848$ 76,068,705$ 32,680,906$ 52,164,306$
New residential dwellings 61 64 58 56 68 95 35 46 84 66
Water
Meters read 16,800 51,240 52,092 52,752 53,496 54,564 56,402 55,924 57,940 59,386
Meters/remotes replaced 991 734 606 426 54 58 75 83 59 30
Water valves maintained 400 400 401 447 120 533 479 475 173 533
Hydrants maintained 250 177 172 428 153 216 225 468 154 201
Residential water gallons used 329,068,876 371,596,967 352,322,681 307,411,101 392,258,038 442,964,466 409,192,333 435,136,857 367,079,894 394,352,759
Avg. daily consumption (MG)1.419 1.580 1.540 1.401 1.650 1.846 1.717 1.784 1.592 1.599
Max. daily gallons pumped (MG)3.450 4.168 3.400 3.064 4.295 4.648 4.179 4.133 3.390 3.203
Sewer
Sewer flow (MG)432 445 434 473 446 482 425 433 459 440
Thickened sludge (wet tons)1,449 1,578 2,115 2,145 2,072 2,207 2,231 2,132 2,308 2,128
Thickened sludge (dry tons)216 229 333 336 314 336 317 303 328 311
Dry tons as % of wet tons 14.91%14.51%15.74%15.66%15.15%15.22%14.21%14.21%14.21%14.61%
Fiscal Year
(continued)
115
CITY OF MONTICELLO
Operating Indicators by Function
Last Ten Fiscal Years (continued)
2016 2017 2018 2019 2020 2021 2022 2023 2024 2025
Fiber optics
Customers 1,630 1,671 1,639 1,701 1,851 1,842 1,786 1,723 1,718 1,724
Service subscriptions 2,589 2,528 2,388 2,381 2,439 2,394 2,283 2,182 2,144 2,103
TV customers 641 543 458 395 323 289 256 233 218 194
Phone customers 461 431 386 362 315 297 275 248 229 201
Internet customers 1,487 1,554 1,544 1,624 1,801 1,808 1,752 1,701 1,697 1,708
Liquor store
235,901 248,356 261,071 267,276 260,957 250,962 249,604 240,982 221,133 218,070
22.39$ 22.42$ 22.56$ 23.07$ 27.48$ 27.32$ 27.72$ 28.13$ 28.22$ 29.06$
2,768,394$ 2,933,853$ 3,074,408$ 3,252,142$ 3,838,912$ 3,665,223$ 3,695,976$ 3,571,363$ 3,306,855$ 3,112,526$
1,624,908$ 1,739,562$ 1,909,953$ 2,019,096$ 2,351,072$ 2,276,808$ 2,340,709$ 2,350,700$ 2,156,981$ 2,229,011$
889,082$ 894,151$ 904,385$ 894,005$ 982,113$ 915,444$ 882,772$ 855,693$ 775,979$ 737,970$
-$ -$ -$ -$ -$ -$ -$ -$ -$ 32,104$
171,420$ 192,615$ 201,482$ 212,052$ 232,452$ 249,112$ 253,581$ 273,155$ 241,792$ 230,978$
21.1%23.2%21.4%22.5%21.2%23.8%24.5%23.4%22.7%24.5%
29.0%26.6%29.0%30.1%30.7%28.9%30.9%30.6%29.8%31.7%
32.5%34.4%32.5%31.8%33.4%29.6%27.0%31.1%32.1%33.5%
Transactions
Average liquor sale transaction
Beer sales
Liquor sales
Wine sales
THC sales
Other sales
Gross profit margin % - beer
Gross profit margin % - liquor
Gross profit margin % - wine
Annual sales increase -0.7%5.6%5.7%4.7%16.1%-4.0%0.9%-1.7%-8.1%-2.1%
Deputy registrar (DMV)
Motor vehicle transactions 67,508 70,605 110,574 129,825 115,466 88,875 77,515 77,870 79,759 76,631
DNR transactions 6,318 5,873 7,009 8,148 8,424 8,759 9,984 8,950 8,058 8,745
Game/fish transactions 600 647 549 709 311 265 245 264 209 327
Drivers licenses transactions 1,465 1,390 1,411 1,283 2,927 3,885 3,334 3,326 4,024 1,380
Total transactions 75,891 78,515 119,543 139,965 127,128 101,784 91,078 90,410 92,050 100,693
Dealerships serviced 21 27 28 30 32 32 43 74 73 75
Net revenue per transaction 3.05$ 2.66$ 2.21$ 3.48$ 2.15$ 1.16$ 1.30$ 5.14$ 5.05$ 3.91$
N/A = Not Available
MG = Millions of Gallons
Notes: Indicators are not available for the general government function.
The City transitioned from quarterly to monthly utility billing in 2017.
State implementation of MNLARS changed how transactions are counted in 2018. Additionally, in late 2020, the DMV's system changed again to MNDrive, which also counts transactions differently.
Sources: Various city departments
Fiscal Year
116
CITY OF MONTICELLO
Capital Assets Statistics by Function
Last Ten Fiscal Years
2016 2017 2018 2019 2020 2021 2022 2023 2024 2025
Function
Public safety
Fire
Fire stations in service 1 1 1 1 1 1 1 1 1 1
Number of volunteers 30 30 30 30 30 30 30 30 30 30
Public works
Streets (miles)68.0 69.0 70.0 70.0 70.0 70.0 81.0 81.0 81.0 81.0
Recreation and culture
Parks acreage maintained 185 320 320 360 360 365 365 365 365 365
Parks 30 30 30 30 30 30 30 30 30 30
Park buildings 15 15 18 18 18 19 19 19 19 19
Community center (sq. ft.)82,000 82,000 82,000 82,000 82,000 82,000 82,000 82,000 82,000 82,000
Water
Fire hydrants 700 700 700 700 700 700 700 700 700 700
Note: No capital asset indicators are available for the general government and economic development functions.
Source: Various city departments
117
CITY OF MONTICELLO
Schedule of Cash Flows Adjusted for Additional City Funding of Fiber Optics Fund
Last Ten Fiscal Years
2016 2017 2018 2019 2020 2021 2022 2023 2024 2025
Cash flows from operating activities
Cash received from customers and users 1,613,032$ 1,886,377$ 1,679,899$ 1,789,793$ 1,819,710$ 1,924,721$ 2,146,870$ 2,004,258$ 2,051,764$ 1,821,304$
Cash paid to suppliers for goods and services (1,657,929) (1,955,033) (1,877,048) (1,465,167) (1,545,323) (1,811,460) (1,669,489) (1,280,934) (1,676,386) (1,567,545)
Cash paid to employees (322,670) (18,367) (205) (244) (4,086) (2,265) - - - (3,737)
Cash paid to other funds for services provided (26,929) - (1,530) (1,194) (1,050) (1,050) (820) (424) (430) (236)
Net cash used by operating activities (394,496) (87,023) (198,884) 323,188 269,251 109,946 476,561 722,900 374,948 249,786
Cash flows from noncapital financing activities
Transfers from other funds 350,000 180,000 130,000 - - - - - - -
Franchise fees - - - - - - 53,000 20,587 12,510 -
Intergovernmental revenues - - - - 82,063 - - - - -
Net cash provided by noncapital financing activities 350,000 180,000 130,000 - 82,063 - 53,000 20,587 12,510 -
Cash flows from capital and related financing activities
Sale of assets - - - - - - - - - -
Acquisition of capital assets - - - - (171,210) (92,701) (199,209) (198,713) (146,934) (48,935)
Net cash provided (used) by capital and related
financing activities - - - - (171,210) (92,701) (199,209) (198,713) (146,934) (48,935)
Cash flows from investing activities
Interest on investments 5,783 4,490 3,216 16,259 14,001 (4,496) (37,000) 70,617 92,094 107,392
Net increase (decrease) in cash and cash equivalents (38,713) 97,467 (65,668) 339,447 194,105 12,749 293,352 615,391 332,618 308,243
Additional city funding
Transfer from liquor fund (350,000) (180,000) (130,000) - - - - - - -
2014A debt service paid by property tax levy/fund balance (515,519) (512,086) (512,665) (512,357) (511,638) (4,438,821) - - - -
Adjusted net increase (decrease) in cash and cash equivalents (904,232)$ (594,619)$ (708,333)$ (172,910)$ (317,533)$ (4,426,072)$ 293,352$ 615,391$ 332,618$ 308,243$
$(5,000,000)
$(4,000,000)
$(3,000,000)
$(2,000,000)
$(1,000,000)
$-
$1,000,000
2016 2017 2018 2019 2020 2021 2022 2023 2024 2025
Fiber Optics Fund Cash Flows
Net increase (decrease) in cash and cash equivalents
Transfer from liquor fund
2014A debt service paid by property tax levy/fund
balance
Adjusted net increase (decrease) in cash and cash
equivalents
118
Back Cover