City Council Agenda Packet 07-14-2014AGENDA
REGULAR MEETING – MONTICELLO CITY COUNCIL
Monday, July 14, 2014 – 7 p.m.
Mississippi Room, Monticello Community Center
Mayor: Clint Herbst
Council Members: Lloyd Hilgart, Tom Perrault, Glen Posusta, Brian Stumpf
1. Call to Order and Pledge of Allegiance
2A. Approval of Minutes – June 23, 2014 Special Meeting
2B. Approval of Minutes – June 23, 2014 Regular Meeting
3. Consideration of adding items to the agenda
4. Citizen comments, public service announcements
A. Citizen Comments:
B. Public Service Announcements:
1) Movie in the Park (7/26 & 8/1)
2) Fishing Clinics (7/19 & 8/2)
5. Consent Agenda:
A. Consideration of approving payment of bills for July 14th
B. Consideration of approving new hires and departures for City departments
C. Consideration of adopting Resolution #2014-068 approving an Assessment
Agreement and certifying special assessments for 503 Maple Street (PID 155-
010-010060) to the Wright County Auditor for tax year payable 2015. Applicant:
SRCS Building Company, o/b/o Swan River Montessori
D. Consideration of appointing additional election judges to serve for the 2014
elections CS
E. Consideration of approving a license for on-sale intoxicating liquor and Sunday
liquor for the Monticello VFW at 713 Cedar Street. Applicant: USS Dorchester
VFW Post 8731
F. Consideration of adopting Resolution #2014-069 calling for a public hearing
regarding the issuance of a revenue obligation for the benefit of the Monticello
Youth Hockey Program, Inc. and providing preliminary approval of the issuance
SPECIAL MEETING
5:45 p.m. - Audit Review
6:00 p.m. - EDA Workshop: Market Matching (joint meeting w/Council)
G. Consideration of authorizing secondary digester cover cleaning, condition
inspection, and time-sensitive repair and primary digester mixer repair
H. Consideration of adopting Resolution #2014-031A rescinding the previously-
adopted legal description for Pine View Addition and replacing with an amended
legal description for vacated street right-of-way
I. Consideration of approving a contract with WSB for Market Matching economic
development services
6. Consideration of items removed from the consent agenda for discussion
7. Regular Agenda:
A. Consideration of accepting 2013 Audit Report
B. Consideration of providing direction to staff relating to public auction of tax-
forfeited lots in the City of Monticello and letter of recommendation to Wright
County
C. Consideration of selecting project area for 2014 Street Lighting improvements,
City Project No. XXX
D. Consideration of authorizing up to $30,000 for Pathway System Improvements
along CSAH 75 (Chestnut Street to West River Street), City Project No. XXX
E. Consideration of adopting Resolution #2014-070 approving the Joint Powers
Agreement for public transit service through the Wright County Area
Transportation (WCAT) Joint Powers Board
8. Added items
9. Adjournment
City Council Special Meeting Minutes – June 23, 2014 Page 1
MINUTES
SPECIAL WORKSHOP MEETING – MONTICELLO CITY COUNCIL
Monday, June 23, 2014 – 6:15 p.m.
Mississippi Room, Monticello Community Center
Present: Clint Herbst, Lloyd Hilgart, Tom Perrault, Glen Posusta, Brian Stumpf
Absent: None
Others: Wayne Oberg, Jeff O’Neill
1. Call to Order
Mayor Herbst called the special meeting to order at 6:15 p.m.
2. Purpose of Workshop: Review of proposed 2015 Tax Levy and Budget
Jeff O’Neill introduced the budget workshop and turned it over to Wayne Oberg who
prepared a presentation showing financial and budget information. Wayne Oberg
explained the purposes of a budget. He provided a list of important dates and a schedule
associated with the 2015 budget process. “What’s New” included no levy limits and a
minimum wage increase to be incorporated into the 2015 budget. Glen Posusta asked
how many employees that would effect. Kitty Baltos explained that the minimum wage
increase will affect a portion of their adult workers this coming year and eventually could
affect student workers. Glen Posusta asked if there was a plan for accommodating that.
Kitty Baltos stated that they have discussed some ideas but have not made any decisions
yet.
Wayne Oberg reviewed the tax levy summary from 1999 through 2014, which was set at
$8.15 million. The levy has been relatively constant since 2009. Next, Wayne Oberg
showed the comparison between tax capacity values and rates for the City. He also
compared tax rates among Wright County cities. The tax levy spread is about 37%
county, 24% school and 38% city. In 2014, the tax levy incorporated debt service,
general fund, and MCC operations. Most of the increase in the tax levy went to debt
service to accommodate additional debt service expenditures in 2014.
Wayne Oberg reviewed three rules for budgeting: spend your most restrictive money
first, offset recurring expenditures with recurring revenues, and estimate revenue
conservatively while estimating expenditures liberally. Wayne Oberg pointed out some
key issues the city faces: dependency on property taxes (81% of general fund revenues),
tax base changes (nuclear plant value is higher), personnel services (40% of the budget),
low impact fees, and some large delinquent assessments. Wayne Oberg reviewed some
of the personnel services trends with actual costs decreasing in 2013. In regard to the
debt service levy, Wayne would recommend using the tax levy to manage the payments
for the years when the payments are higher.
Wayne Oberg talked about the model for budget preparation with department heads
preparing their requests, which are then recommended and discussed prior to adoption by
City Council Special Meeting Minutes – June 23, 2014 Page 2
Council. Wayne Oberg presented a recommendation of a 2.1% levy increase which is
equal to the cost of living increase. Wayne Oberg discussed the potential large increase
in value on the nuclear plant which would help absorb a tax levy increase. Wayne Oberg
noted that the 2014 budget included 1% wage increase and 5% benefit increase. Council
will be asked for input on 2015 wage and benefit amounts, and once those are determined
the remainder of the budget falls into place.
Glen Posusta asked why the MCC operations shows an increase in expenditures. Wayne
Oberg explained that he is now accounting for IT/copier/printer services and several other
expenditures in the MCC fund instead of in the general fund. Glen Posusta asked if any
of the MCC improvements have resulted in cost savings, and Kitty Baltos noted that the
electrical bills have leveled off.
Jeff O’Neill talked about the potential for doing some capital improvement planning for
future years when the debt service levels decrease after 2016. Glen Posusta suggested
that the street reconstruction project should be looked at again, especially for the areas
that have been delayed.
Wayne Oberg noted that his recommendation of 2.1% tax levy would be adequate if the
police service hours stay at their current level. He suggested an increase to 3% if the city
reinstates the police contract hours back to 2013 levels.
3. Adjournment
TOM PERRAULT MOVED TO ADJOURN THE SPECIAL MEETING AT 6:56 P.M.
GLEN POSUSTA SECONDED THE MOTION. MOTION CARRIED 5-0.
Recorder: Catherine M. Shuman ____
Approved:
Attest: __________________________
City Administrator
City Council Minutes – June 23, 2014 Page 1
MINUTES
REGULAR MEETING – MONTICELLO CITY COUNCIL
Monday, June 23, 2014 – 7 p.m.
Mississippi Room, Monticello Community Center
Present: Clint Herbst, Lloyd Hilgart, Tom Perrault, Glen Posusta, Brian Stumpf
Absent: None
1. Call to Order and Pledge of Allegiance
Mayor Herbst called the meeting to order at 7:01 p.m. and declared a quorum present.
The Pledge of Allegiance was recited.
2A. Approval of Minutes – May 27, 2014 Regular Meeting
TOM PERRAULT MOVED TO ACCEPT THE MAY 27, 2014 REGULAR MEETING
MINUTES AS PRESENTED. GLEN POSUSTA SECONDED THE MOTION.
MOTION CARRIED 5-0.
2B. Approval of Minutes – June 9, 2014 Special Meeting
TOM PERRAULT MOVED TO ACCEPT THE JUNE 9, 2014 SPECIAL MEETING
MINUTES AS PRESENTED. LLOYD HILGART SECONDED THE MOTION.
MOTION CARRIED 5-0.
2C. Approval of Minutes – June 9, 2014 Regular Meeting
LLOYD HILGART MOVED TO ACCEPT THE JUNE 9, 2014 REGULAR MEETING
MINUTES AS PRESENTED. TOM PERRAULT SECONDED THE MOTION.
MOTION CARRIED 5-0.
3. Consideration of adding items to the agenda
Swan River grass mowing (Clint Herbst)
7 Fairway Drive nuisance (Brian Stumpf)
4. Citizen comments, public service announcements, and updates
A. Citizen Comments: None
B. Public Service Announcements:
1) Movie in the Park (6/28) – Kitty Baltos reported that Movie in the Park
takes place this Saturday, June 28th in Pioneer Park and is sponsored by
Monti Times. The movie, “Gravity” is free; bring your own lawn chairs
and blankets and mosquito spray. Concessions are available for sale.
Movie starts at dusk around 9:30 p.m. If rain, look for Facebook message
and MCC will reschedule.
City Council Minutes – June 23, 2014 Page 2
2) MCC Block Party (7/10) – Kitty Baltos announced the Riverfest Block
Party taking place on Thursday, July 10th from 11 a.m. to 1 p.m. on the
south side of the community center. There will be free food and activities.
This is sponsored by the Community Center, City Hall, Senior Center, MN
Army National Guard, FiberNet Monticello, and the Monticello Times.
3) Riverfest (7/10-13) – Angela Schumann noted that Riverfest activities run
from Thursday, July 10th through Sunday, July 13th. Check out the
website at www.monticelloriverfest.com to get all the details about
Riverfest.
4) “The Legends in Purple” at Hi Way Liquors (7/12) – Rachel Leonard
announced that “The Legends in Purple” will be present at Hi Way
Liquors on Saturday, July 12th. The event features four former Minnesota
Vikings from 1-2 p.m.
5) Xcel Tree Trimming – Tom Moores updated Council on Xcel’s tree
trimming schedule. They have started trimming trees around powerlines
and will continue in another few weeks. Contact Public Works if
questions or concerns.
6) Chipsealing Project – Tom Moores noted that the chip sealing project is
underway and the contractor will be fog sealing very soon. Please watch
for signage in areas at the west end of town such as West River Street, Par
West, Prairie Road and Nicholas Circle.
C. Updates:
1) Public transit service: Trailblazer Transit and MnDOT officials will be
giving a presentation, on Monday, June 30th at 6 PM at St. Michael City
Hall, about the public transit services to be provided in Wright County.
Clint Herbst noted that he has been receiving a number of phone calls
from citizens and he has assured them the city is not dropping transit.
Council members will be attending the meeting on June 30th and are
bringing questions forward.
Jeff O’Neill explained that River Rider service will be ending June 30th.
Those needing rides can call Trailblazer to find out how they can schedule
a ride. Hoglund Transportation is also available to provide rides to fill the
gap if Trailblazer cannot. Brian Stumpf asked if Hoglund’s would be able
to provide service if Trailblazer could not handle rides in Monticello.
Clint Herbst explained that the City has met with Hoglund’s, Trailblazer,
and MnDOT to discuss bus service options and express concerns about
providing service in Monticello after June 30th.
5. Consent Agenda:
City Council Minutes – June 23, 2014 Page 3
A. Consideration of approving payment of bills for June 23rd. THIS ITEM WAS
REMOVED FROM THE CONSENT AGENDA.
B. Consideration of approving new hires and departures for City departments.
Recommendation: Ratify new hires and terminations for MCC and FiberNet.
C. Consideration of adopting Resolution #2014-063 establishing an Absentee Ballot
Board for the 2014 Elections. Recommendation: Adopt Resolution #2014-063
establishing an Absentee Ballot Board for the 2014 Elections.
D. Consideration of appointing election judges to serve for the 2014 elections,
including judges for the Absentee Ballot Board and Health Care Facility voting.
Recommendation: Appoint election judges listed as follows for the 2014
elections.
Ahrens, Jerrie Hoskins, Darla
Anderson, Cindy Hultberg, Lois
Anderson, Fred Kendall, Harvey
Bitzer, Gladys Lenzen, Mary (lead)
Brauch, Donna Moody, Judy
Broekemeier, Pam Nesland, MerriJo (Jo)
Carlson, David Norling, Carol
Dahl, Rosemary (lead) Norling, Lonnie
DeMarais, Agnes Opay, Frank
Doucette, Richard Ordonez, Denise
Duran, Rosanne (lead) Peters, Diane
Erickson, Keri Quick, Richard (Head)
Fair, Bill Rhoades, Alyssa (lead)
Fink, Timothy Sanborn, James
Gilberts, Lana Seefeldt, Merrlyn
Gilberts, Mark Smith, Jeanette
Gillham, Lynnea Solberg, Darlene
Gordon, Jacquelin Sonju-Thielman, Patricia
Grabinski, Robert Spiers, Julie (lead)
Hoffarth, William Stevenson, Jim
E. Consideration of approving individual pension contribution amount for
Monticello Fire Relief Association members. Recommendation: Approve
setting the individual pension benefit level at $3,100 for current Fire Relief
Association members and the deferral rate at 2.5% for past members.
F. Consideration of approving a Special Event Permit allowing use of city streets
and related assistance for the Downtown Block Party on July 9, 2014. Applicant:
Monticello Chamber/Cornerstone Cafe. Recommendation: Approve the Special
Event Permit allowing temporary closing of Walnut Street from 7:00 AM until
10:00 PM. on Wednesday, July 9th, 2014, including the use of public parking
City Council Minutes – June 23, 2014 Page 4
facilities, staff resources and amenities as described in the Special Event Permit
application, contingent on the following:
Continued site coordination with Street Superintendent.
Restoration of the Third Street parking lot to satisfaction of Public Works
department.
Verification of notification of affected local businesses by permit holder.
Application for temporary sign permit for wastewater treatment site.
G. Consideration of approving Special Event Permit allowing use of Ellison Park and
related assistance in conjunction with Art in the Park/Taste of Monticello on
Saturday, July 12, 2014. Applicant: Monticello Chamber of Commerce.
Recommendation: Approve the Special Event Permit, with fee waiver, allowing
use of Ellison Park and related assistance in conjunction with the Art in the
Park/Taste of the Town celebration on July 12, 2014, subject to submission of a
certificate of general liability coverage with the City named as additional insured.
H. Consideration of approving Special Event Permit allowing use of Ellison Park,
West Bridge Park, Pioneer Park, and Community Center Parking Lot; use of city
streets for the Riverfest parade; and related assistance in conjunction with the
annual Riverfest celebration on July 12-13, 2014. Applicant: Riverfest
Committee. Recommendation: Approve the Special Event Permit, with fee
waiver, allowing use of Ellison Park, Pioneer Park, and Community Center
Parking Lot and related City staff assistance in conjunction with the annual
Riverfest celebration on July 10-13, 2014, contingent on the following:
Continued site plan and traffic control coordination with Public Works
Submission of certificate of liability coverage with City named as
additional insured for Ellison and Pioneer Park and Community Center
events
Lot closure signage and notification in coordination with the Street
Superintendent as needed
I. Consideration of approving a Special Event Permit for outdoor entertainment at
Chatter’s Bar & Grill on July 11, 2014. Applicant: Richard Brendsel/West River
Restaurants, Inc. Recommendation: Approve the Special Event Permit for
outdoor entertainment from 9 PM to 1 AM at Chatter’s Restaurant Bar & Grill for
July 11th, 2014.
BRIAN STUMPF MOVED TO APPROVE THE CONSENT AGENDA WITH THE
REMOVAL OF ITEM A. TOM PERRAULT SECONDED THE MOTION. MOTION
CARRIED 5-0.
6. Consideration of items removed from the consent agenda for discussion
5A. Consideration of approving payment of bills for June 23rd
City Council Minutes – June 23, 2014 Page 5
Tom Perrault asked why the city is supplying cough drops for first aid kits under Zee
Medical. Wayne Oberg stated that is a FiberNet charge.
Clint Herbst asked about purchase of mailbox posts. Tom Moores explained that these
are for some areas in Hunter’s Crossing; the developer defaulted before he completed the
mailbox structures. The City is putting up the cluster mailbox structures to complete the
project. Glen Posusta objected to the City providing the mailboxes and feels that should
be the responsibility of the developer and/or homeowners. Wayne Oberg stated that he
had authorized this expenditure in order to complete the development requirements. City
staff is looking into revisions to the developer agreements to address this issue. Angela
Schumann explained that the letter of credit covers public improvements and may cover
mailboxes. In addition, cash securities were provided. Staff would have to verify which
covered what items and whether the mailboxes could be covered by any existing
securities. Glen Posusta reiterated that he feels the homeowners should purchase their
own mailboxes. Clint Herbst asked staff to report back on possible recovery of costs.
Tom Perrault also asked about an invoice from Mankato Networks LLC for $83,397.77,
and Jeff O’Neill confirmed those purchases were related to the FiberNet 2.0 project.
GLEN POSUSTA MOVED TO APPROVE THE BILL AND PURCHASE REGISTERS
FOR A TOTAL OF $686,211.74. LLOYD HILGART SECONDED THE MOTION.
MOTION CARRIED 5-0.
7. Regular Agenda:
A. Public Hearing - Consideration of approving the 2013 Storm Water Pollution
Prevention Program (SWPPP) Annual Report
Shibani Bisson provided a presentation regarding the SWPPP program and noted
the public hearing is to educate the public about the program and accept public
input about its storm water activities. The main purpose of the SWPPP program
is to reduce discharge of pollutants into the storm water system. Shibani Bisson
reviewed some of the management actions that the City takes to control storm
water, such as regional ponds and implementing curb and gutter to contain runoff.
The SWPPP addresses six minimum control measures which are reported
annually. Shibani Bisson noted the city has been working on these since 2008:
Public Education and Outreach, Public Participation and Involvement, Illicit
Discharge Detection and Elimination (IDDE), Construction Site Stormwater
Runoff Control, Post-Construction Storm Water Management, and Pollution
Prevention and Good Housekeeping.
Shibani Bisson summarized some of the MS4 program activities conducted during
2013 such as public information, documentation of illicit discharges, and
inspection of storm sewer pollution control devices. Glen Posusta asked why
contractors put up silt fences around the work site area that is not along a street.
Shibani Bisson explained that defines the edge of the property being developed
and that helps control sediment in case of rain. Shibani Bisson noted that for
City Council Minutes – June 23, 2014 Page 6
2014 there are new permit activities related to storm water management that will
be required by the MPCA and will need to be documented in the next annual
report. These new activities involve educational activities, development of
procedures and manuals, revision of existing ordinances, and identification of
training, inspections, and record keeping needs.
Brian Stumpf noted some corrections to the annual report and asked if the State
comes out to do inspections. Shibani Bisson explained that they do random audits
of several cities each month so it is possible that the City could be audited. Brian
Stumpf asked how long the city has been doing the SWPPP annual report and
Shibani Bisson stated that this has been in place since 2008.
Shibani Bisson suggested that the city consider a storm water fee be created to
help fund the expenditures of keeping up with these new regulations. Clint Herbst
indicated that he would prefer a budgeted tax levy increase rather than another
line item fee for residents to pay on their bill. Clint Herbst asked about storm
water holding in older areas that drain stormwater directly into the river. Shibani
explained that is not a requirement at this time but probably will be eventually.
Mayor Herbst opened the public hearing. As there were no comments, the public
hearing was closed.
BRIAN STUMPF MOVED FOR ALTERNATIVE #1 APPROVING THE 2013
SWPPP ANNUAL REPORT AND AUTHORIZING SUBMITTAL TO THE MN
POLLUTION CONTROL AGENCY BY JUNE 30, 2014. TOM PERRAULT
SECONDED THE MOTION. MOTION CARRIED 5-0.
B. Consideration of adopting Resolution #2014-064 approving a lease agreement
with Verizon Wireless for a Wireless Telecommunications Monopole, City
Project No. ZTOWER
Shibani Bisson reviewed the Lease Agreement and Memorandum to Lease
Agreement that Verizon has agreed to and signed. The key terms include:
Verizon to make rental payments to the City in the amount of $24,000 per
year for 10 years.
Annual rental will be increased by 3% each year.
Rental shall be reduced by $1,800 per year ($150 per month) in the event
that Sprint, T-Mobile, or AT&T lease space on the tower from the City.
The agreement automatically extends for four additional five-year terms
unless Verizon or the City terminates the agreement in writing.
City agrees to diligently complete construction of the tower by September
30, 2014.
City to provide access to the site at all times for installation and
maintenance of equipment.
City Council Minutes – June 23, 2014 Page 7
Clint Herbst asked about the reduction in price should another
telecommunications company co-locate with Verizon. Shibani Bisson explained
that would reduce the amount Verizon would pay and would apply to up to two
other co-locates. Shibani Bisson briefly talked about the process for determining
the structure of the tower and the decision to not locate microwave dishes on the
monopole.
Tom Perrault asked questions about the lease agreement: In Section 10
(Insurance), he wondered how much the general liability insurance would cost the
City. Wayne Oberg said that would be a minimal cost of about $2400 per year for
the city’s property and liability. Tom asked if there would a tax liability to the
City; Wayne indicated that tax on the tower would be the responsibility of
Verizon.
GLEN POSUSTA MOVED FOR ALTERNATIVE #1 TO ADOPT
RESOLUTION #2014-064 APPROVING A LEASE AGREEMENT WITH
VERIZON WIRELESS FOR CO-LOCATION ON A WIRELESS
TELECOMMUNICATIONS MONOPOLE, CITY PROJECT NO. ZTOWER.
BRIAN STUMPF SECONDED THE MOTION. MOTION CARRIED 5-0.
C. Consideration of adopting Resolution #2014-065 accepting bids and awarding
contract(s) for a Wireless Telecommunications Monopole, City Project No.
ZTOWER
Shibani Bisson summarized the process of advertising for bids and subsequent
receipt of five bids in a range from $118,933.00 to $268,837.00. The lowest
responsible bidder at $118,933 is Structural Tower Services out of Becker MN.
Shibani was referred to this company by Hennepin County; the bid from
Structural Tower is much lower because they are located close by. Shibani
Bisson briefly explained the process for construction and erection of the tower
with a construction deadline of September 30th.
Glen Posusta asked how the tower will be erected to the height of 170 feet.
Shibani Bisson explained that it is done in sections using a crane.
LLOYD HILGART MOVED FOR ALTERNATIVE #1 TO ADOPT
RESOLUTION #2014-065 ACCEPTING BIDS AND AWARDING
CONTRACT STRUCTURAL TOWER SERVICES OF BECKER, MN IN THE
AMOUNT OF $118,933 FOR A WIRELESS TELECOMMUNICATIONS
MONOPOLE, CITY PROJECT NO. ZTOWER. GLEN POSUSTA SECONDED
THE MOTION. MOTION CARRIED 5-0.
D. Consideration of Analysis related to Interim Ordinance #590, an interim
ordinance allowing Places of Public Assembly on a temporary basis as a principal
or accessory use in a B-3 (Highway Business) District
City Council Minutes – June 23, 2014 Page 8
Angela Schumann gave a presentation outlining the history of Interim Ordinance
No. 590 that was granted for a religious organization (Faith Family Life Center)
to temporarily occupy a building in a B-3 District, which does not permit “Places
of Public Assembly.” With approval of an interim ordinance, city staff was
essentially utilizing MN Statute 462.355, Subd. 4, known as the “Moratorium”
statute. Under this statute, a city can establish interim zoning to allow time to
study an issue and decide whether new rules should be adopted. City staff and
Northwest Associated Consultants conducted a study of the use for “Places of
Public Assembly,” and presented their findings to the Planning Commission on
June 3rd, 2014.
The Planning Commission decision was to not amend the zoning ordinance and
allow the Interim Use Permit, which was granted earlier, to expire in August as
scheduled.
Clint Herbst allowed Mark Lillo from Family Faith Life Center to speak, however
the Mayor indicated that the interim use at 3939 Chelsea Road West was
approved on a temporary basis only and was not intended for long-term use.
Mark Lillo requested Council to consider allowing Family Faith Life Center to
expand to a multiple use in addition to church services; such uses to possibly
include counseling and other family services, youth services including a gym and
trampoline park, and possible other miscellaneous services such as offices, a
conference center, and oil changes. Although it would become a tax exempt
facility, Lillo stated that his organization does contribute back to the community
and is willing to make recompense for the loss of tax dollars.
Glen Posusta commented that he does not agree with rezoning of this property
and does not feel this is the right location for the types of uses as proposed. Mark
Lillo stated that he knows of two other churches that tried to locate in Monticello
but could not find a location and ended up across the river in Sherburne County.
Glen Posusta said there are quite a number of churches already located in
Monticello and there are appropriate areas zoned for them.
Tom Perrault asked if an interim use permit could have various term lengths or be
open-ended. He expressed concern over the building being left empty. Angela
Schumann explained that interim use permits (IUPs) are intended to have a
termination date and are not renewable. A new application process would be
required. Angela added that the Council has the option of calling for a public
hearing for ordinance amendment or to deny calling for hearing.. The applicant
can also request a public hearing to consider a change to the zoning ordinance.
Mark Lillo thinks this could be a win-win for both his church and the city, such
that the building is in use rather than sitting empty. Clint Herbst stated again that
he is not in favor of this location and encouraged Lillo to look at another site in
Monticello to expand their services.
City Council Minutes – June 23, 2014 Page 9
Lloyd Hilgart agreed that the church should be located somewhere else and would
like to see an auto type of business in this location.
Clint Herbst asked for other comments from Council. Tom Perrault asked what
the purpose of a public hearing would be; Lloyd Hilgart explained that would be
to consider an ordinance amendment to allow “Places of Public Assembly” in a
B-3 zone as a permitted use.
LLOYD HILGART MOVED FOR ALTERNATIVE # 2 DENYING A CALL
FOR A PUBLIC HEARING AND PERMITTING THE CURRENT INTERIM
ORDINANCE TO EXPIRE AT THE END OF AUGUST 2014, AND DIRECT
STAFF TO PREPARE A RESOLUTION OF FINDINGS FOR DENIAL TO BE
BROUGHT BACK TO COUNCIL FOR ADOPTION. GLEN POSUSTA
SECONDED THE MOTION. MOTION CARRIED 5-0.
Tom Perrault asked if it would be possible to extend the IUP for Faith Family Life
Center. Angela Schumann explained that the IUP cannot be extended; it expires
on the termination date along with the Interim Ordinance No. 590. If the
applicant wishes, they have the option of requesting a public hearing to consider
an ordinance amendment that would allow this use in a B-3 zone.
8. Added items
Swan River grass mowing – Clint Herbst noted that the length of the grass at
Swan River’s lot is still really long in places. Angela Schumann indicated that a
notice was sent requesting that the lot be mowed. Staff is checking on the status
of the mowing. Clint Herbst commented that he is not impressed with the look
and was concerned about the plan to use native plantings on this lot.
7 Fairway Drive nuisance – Brian Stumpf brought up this item because he had a
phone call from a neighboring property of 7 Fairway Drive. The court hearing on
the nuisance was held today but Angela Schumann has not received an update at
this time. Brian Stumpf said he had explained to the caller that the City is
working on it.
9. Adjournment
BRIAN STUMPF MOVED TO ADJOURN THE MEETING AT 8:22 P.M. GLEN
POSUSTA SECONDED THE MOTION. MOTION CARRIED 5-0.
Recorder: Catherine M. Shuman ____
Approved:
Attest: ___________________________
City Administrator
CityCouncilAgenda:7/14/14
1
5A.ConsiderationofapprovingpaymentofbillregistersforJuly14th (WO)
A.REFERENCEANDBACKGROUND:
Citystaffsubmitstheattachedbillregistersandpurchasingcardregistersforapprovalby
Council.Thebillregisterscontainallinvoicesprocessedandthepurchasingcard
registerscontainallcardpurchasesmadesincethelastCouncilmeeting.SubjecttoMN
Statutes,mostinvoicesrequireCouncilapprovalpriortoreleasingchecksforpayment.
ThedayfollowingCouncilapproval,paymentswillbereleasedunlessdirected
otherwise.AcreditpurchasingagreementandpolicywasapprovedbyCouncilinitially
andcardpurchasesmustcomplywiththepolicy.
IfCouncilhasnoquestionsorcommentsonthebillandpurchasecardregisters,thesecan
beapprovedwiththeconsentagenda.Ifrequested,thisitemcanberemovedfrom
consentanddiscussedpriortomakingamotionforapproval.
A1.BudgetImpact:None
A2.StaffWorkloadImpact:Noadditionalworkrequired
B.ALTERNATIVEACTIONS:
1.Motiontoapprovethebillandpurchasecardregistersforatotalamountof
$821,193.16.
2.MotiontoapprovetheregisterswithchangesdirectedbyCouncil.
C.STAFFRECOMMENDATION:
CitystaffrecommendsAlternative#1or#2,perdirectionofCouncil.
D.SUPPORTINGDATA:
Billregisters
PurchaseCardregisters
User:
Printed:07/01/2014 - 1:26PM
Ann.Zimmerman
Computer Check Proof List by Vendor
Accounts Payable
Batch:00209.06.2014 - 209.06.2014 AP
Invoice No Description Amount Payment Date Acct Number Reference
Vendor:3679 SUPERIOR PRESS Check Sequence: 1 ACH Enabled: True
6/11/14 (100) 10x15 vertical twin duel pouch deposit bag 122.43 06/30/2014 101-41520-421990
122.43Check Total:
Total for Check Run:
Total of Number of Checks:
122.43
1
AP-Computer Check Proof List by Vendor (07/01/2014 - 1:26 PM)Page 1
The preceding list of bills payable was reviewed and approved for payment.
Date: 7/14/14 Approved by: ____________________________________
Mayor Clint Herbst
User:
Printed:07/09/2014 - 1:37PM
Debbie.Davidson
Computer Check Proof List by Vendor
Accounts Payable
Batch:00203.07.2014 - 203.07.2014 AP
Invoice No Description Amount Payment Date Acct Number Reference
Vendor:1835 A H HERMEL COMPANY Check Sequence: 1 ACH Enabled: False
440848 re-sale 116.53 07/08/2014 226-45203-425410
116.53Check Total:
Vendor:2282 ALBIN ACQUISITION CORPORATION Check Sequence: 2 ACH Enabled: True
0620145487S (2) background check 74.00 07/08/2014 217-41990-431990
0620145487S (3) background check 69.00 07/08/2014 609-49754-431990
0620145487S (1) background check 23.00 07/08/2014 226-45122-431990
0620145487S (1) background check 37.00 07/08/2014 655-49870-431990
203.00Check Total:
Vendor:1018 ALLIED BLACKTOP COMPANY Check Sequence: 3 ACH Enabled: False
19149 202.9 gl road oil 659.43 07/08/2014 101-43120-422400
659.43Check Total:
Vendor:1034 ANOKA TECH COLLEGE BUSINESS OFFICE Check Sequence: 4 ACH Enabled: False
00125039 Contract #2138 Cust ID# 12482999 5/9/14 training 750.00 07/08/2014 101-41800-431960
750.00Check Total:
Vendor:1036 APEC Check Sequence: 5 ACH Enabled: True
119459 (71) assorted Masterlink filters 1,157.37 07/08/2014 226-45122-422990
119464 (12) 16x25x2 pleated filter 53.96 07/08/2014 226-45122-422990
1,211.33Check Total:
Vendor:1038 APPERTS FOOD SERVICE Check Sequence: 6 ACH Enabled: False
406170329 re-sale 74.42 07/08/2014 226-45127-425410
406170329 freight 5.00 07/08/2014 226-45122-433300
406200698 re-sale 750.41 07/08/2014 226-45127-425410
406200698 Party Room supplies 60.47 07/08/2014 226-45127-421460
AP-Computer Check Proof List by Vendor (07/09/2014 - 1:37 PM)Page 1
Invoice No Description Amount Payment Date Acct Number Reference
406200698 freight 5.00 07/08/2014 226-45122-433300
406270486 Friendship Island - supplies 139.82 07/08/2014 226-45127-421981
406270487 re-sale 201.43 07/08/2014 226-45203-425410
406270488 freight 5.00 07/08/2014 226-45122-433300
406270488 party room drink; ice cream 128.43 07/08/2014 226-45127-421460
406270488 re-sale food 554.14 07/08/2014 226-45127-425410
1,924.12Check Total:
Vendor:2886 AUSCO DESIGN AND MARKETING Check Sequence: 7 ACH Enabled: False
1727 Safety green shirts w/logo 198.00 07/08/2014 101-45201-421110
1727 Safety green shirts w/logo 165.00 07/08/2014 101-43120-421110
1727 Safety green shirts w/logo 30.00 07/08/2014 602-49490-421110
1727 Safety green shirts w/logo 30.00 07/08/2014 601-49440-421110
423.00Check Total:
Vendor:1059 BARTON SAND AND GRAVEL CO Check Sequence: 8 ACH Enabled: False
140615 43.53 T class 5 gravel base 291.66 07/08/2014 101-43120-422400
291.66Check Total:
Vendor:2674 DOROTHY K BECK Check Sequence: 9 ACH Enabled: True
07032014 Farmer's Mkt- tokens 35.00 07/08/2014 226-00000-220100
6/27/14 Farmer's Mkt 25.00 07/08/2014 226-00000-220100
60.00Check Total:
Vendor:1065 BELLBOY CORPORATION Check Sequence: 10 ACH Enabled: True
43530100 freight 26.39 07/08/2014 609-49750-433300
43530100 re sale 1,711.51 07/08/2014 609-49750-425100
43641200 re sale 2,483.45 07/08/2014 609-49750-425100
43641200 re sale 240.00 07/08/2014 609-49750-425300
43641200 freight 39.29 07/08/2014 609-49750-433300
43750300 re sale 477.90 07/08/2014 609-49750-425100
43750300 freight 10.80 07/08/2014 609-49750-433300
90364700 re sale 18.00 07/08/2014 609-49750-425500
90364700 freight 0.08 07/08/2014 609-49750-433300
90404100 (7) 500 sleeve assorted bags 112.95 07/08/2014 609-49754-421990
90404100 utx - 10/240 c-fold paper towels 28.00 07/08/2014 609-49754-421990
90404100 re sale 189.55 07/08/2014 609-49750-425400
90404100 freight 1.52 07/08/2014 609-49750-433300
90446400 bags - (4) quart; (3) squat; (2) x-hvy; 1/6 barrel 203.33 07/08/2014 609-49754-421990
AP-Computer Check Proof List by Vendor (07/09/2014 - 1:37 PM)Page 2
Invoice No Description Amount Payment Date Acct Number Reference
5,542.77Check Total:
Vendor:1067 BERNICK'S Check Sequence: 11 ACH Enabled: False
37921 re-sale 340.00 07/08/2014 226-45127-425410
39838 re sale 16.40 07/08/2014 609-49750-425500
39839 re sale 1,109.10 07/08/2014 609-49750-425200
40480 re-sale 273.00 07/08/2014 226-45127-425410
42904 re sale 49.20 07/08/2014 609-49750-425500
42904 re sale 177.40 07/08/2014 609-49750-425400
42905 re sale 1,463.30 07/08/2014 609-49750-425200
43707 re-sale 285.00 07/08/2014 226-45127-425410
43707 Party Room supplies 12.80 07/08/2014 226-45127-421460
46839 re sale 52.80 07/08/2014 609-49750-425500
46839 re sale 77.80 07/08/2014 609-49750-425400
46840 re sale 1,126.85 07/08/2014 609-49750-425200
4,983.65Check Total:
Vendor:1701 BIFF'S INC Check Sequence: 12 ACH Enabled: False
5/28/14 4/30-5/27/14 (7) parks; ballfields 400.50 07/08/2014 101-45201-431990
400.50Check Total:
Vendor:3777 TOWN OF BIG LAKE Check Sequence: 13 ACH Enabled: False
6/17/2014 Big Lake Fire Dept - 2014 Mobile Air Supply Trailer 100.00 07/08/2014 101-42200-421990
100.00Check Total:
Vendor:2576 BIG LAKE LUMBER Check Sequence: 14 ACH Enabled: False
20038391 ZZBCOL - Cedar - (6) 6x6 8; (6) 2x6x8; (3) 2x12x8 711.00 07/08/2014 101-45201-421990
20038618 (13) 2x6x20 treated;(12) 4x4 10'; (6) 2x6 16' above ground; ect. 607.49 07/08/2014 101-43120-422500
20039239 (6) 2x4x12' const Cedar S4S; (6) 2x10 8' SPF 162.09 07/08/2014 101-45201-422990
1,480.58Check Total:
Vendor:1075 BOND TRUST SERVICES CORPORATION Check Sequence: 15 ACH Enabled: True
10976 8/2/14-8/1/15 Agent Services GO Bonds Series 2007A 450.00 07/08/2014 313-47000-462010
10977 8/2/14-8/1/15 Agent Services GO Bonds Series 2011A 450.00 07/08/2014 312-47000-462010
900.00Check Total:
Vendor:2535 BORDER STATES ELECTRIC SUPPLY Check Sequence: 16 ACH Enabled: True
907550994 (50) 3M fiber jumpers 391.17 07/08/2014 656-49877-421990
AP-Computer Check Proof List by Vendor (07/09/2014 - 1:37 PM)Page 3
Invoice No Description Amount Payment Date Acct Number Reference
907582122 (20) CYBE-CSN27U12V-NA2 battery 12V backup 2prong 1,124.11 07/08/2014 656-49877-421990
1,515.28Check Total:
Vendor:1091 CAMPBELL KNUTSON PA Check Sequence: 17 ACH Enabled: True
2348-001G81 Code Enforcement 52.50 07/08/2014 101-42400-430400
2348-067G16 Swan River 1,017.50 07/08/2014 101-41610-430400
2348-103G83 Fiber/Broadband project 210.00 07/08/2014 655-49870-430400
2348-126G2 ZGOODW - Cedar Street Addition/Lundsten 1,490.00 07/08/2014 101-00000-220110
2,770.00Check Total:
Vendor:1096 RUSS CARTER Check Sequence: 18 ACH Enabled: False
6/26/14 1 yr renewal - lobby directories - Super 8; Days Inn 175.00 07/08/2014 226-45122-434990
175.00Check Total:
Vendor:1102 CENTERPOINT ENERGY Check Sequence: 19 ACH Enabled: False
6/30/14 8000014331-5 18.69 07/08/2014 217-41990-438300
6/30/14 8000014331-5 12.59 07/08/2014 101-45201-438300
6/30/14 8000014331-5 120.80 07/08/2014 101-42200-438300
6/30/14 8000014331-5 210.46 07/08/2014 101-43127-438300
7/1/14 5864452-7 18.88 07/08/2014 101-45501-438300
7/1/14 5788570-9 13.46 07/08/2014 609-49754-438300
7/1/14 5768542-2 177.15 07/08/2014 101-41940-438300
7/1/14 utx - 5768542-2 4,096.54 07/08/2014 226-45122-438300
7/1/14 5768542-2 66.43 07/08/2014 101-45175-438300
7/1/14 5768542-2 88.57 07/08/2014 101-42800-438300
7/1/14 5828859-8 12.59 07/08/2014 101-41940-438300
7/1/14 8235331-9 36.10 07/08/2014 101-41941-438300
7/1/14 8235333-5 13.46 07/08/2014 101-41941-438300
4,885.72Check Total:
Vendor:3750 MARK CHRISTIANSEN Check Sequence: 20 ACH Enabled: False
06242014 credit/debit tokens at Farmers Market 15.00 07/08/2014 226-00000-220100
15.00Check Total:
Vendor:1119 COMMISSIONER OF TRANSPORTATION Check Sequence: 21 ACH Enabled: False
P00002983 12C002- Material testing & inspection 5/30/14 Job Cost Transfers 55.86 07/08/2014 400-43300-459010
55.86Check Total:
AP-Computer Check Proof List by Vendor (07/09/2014 - 1:37 PM)Page 4
Invoice No Description Amount Payment Date Acct Number Reference
Vendor:1120 CONCRETE PRODUCTS NEW LONDON Check Sequence: 22 ACH Enabled: False
00043381 12C009 - Well #4 landscaping supplies 434.54 07/08/2014 601-00000-165010
434.54Check Total:
Vendor:3784 FRED COX Check Sequence: 23 ACH Enabled: False
7/12/14 7/12/14 1-2pm appearance 500.00 07/08/2014 609-49754-443990
500.00Check Total:
Vendor:2476 CSI DIGITAL INC Check Sequence: 24 ACH Enabled: True
102426 Trouble tickets - #3082 6/9/14; #3072 6/10-6/13/14 420.00 07/08/2014 655-49870-432500
102450 PDS to Mpls Gbps monthly fiber feed 2,700.00 07/08/2014 655-49860-430930
3,120.00Check Total:
Vendor:1746 CUSTOM FIRE APPARATUS INC Check Sequence: 25 ACH Enabled: False
15508 air horn solenoid 55.60 07/08/2014 101-42200-422110
55.60Check Total:
Vendor:2935 CUSTOMIZED FIRE RESCUE TRAINING INC Check Sequence: 26 ACH Enabled: False
423 (3) Instructor 1 Course - J.O. M.M. S.G 900.00 07/08/2014 101-42200-115030
900.00Check Total:
Vendor:1129 DAHLHEIMER BEVERAGE LLC Check Sequence: 27 ACH Enabled: True
1113034 re sale 153.00 07/08/2014 609-49750-425400
1113068 re sale 1,128.65 07/08/2014 609-49750-425200
92640 re sale -17.14 07/08/2014 609-49750-425200
92738 re-sale 267.00 07/08/2014 226-45203-425200
92744 re sale -19.00 07/08/2014 609-49750-425200
92760 re sale 42.00 07/08/2014 609-49750-425400
92760 re sale 23,817.24 07/08/2014 609-49750-425200
92993 re sale 16.40 07/08/2014 609-49750-425400
92993 re sale 1,040.45 07/08/2014 609-49750-425200
93167 re sale 17,110.77 07/08/2014 609-49750-425200
93167 re sale 304.30 07/08/2014 609-49750-425400
93269 re sale 51.60 07/08/2014 609-49750-425200
93270 re sale -67.20 07/08/2014 609-49750-425200
93501 re-sale 267.00 07/08/2014 226-45203-425200
93609 re sale 34,296.26 07/08/2014 609-49750-425200
93609 re sale 74.00 07/08/2014 609-49750-425400
93641 re sale 108.50 07/08/2014 609-49750-425200
AP-Computer Check Proof List by Vendor (07/09/2014 - 1:37 PM)Page 5
Invoice No Description Amount Payment Date Acct Number Reference
93676 re sale -68.80 07/08/2014 609-49750-425200
93677 re sale 106.50 07/08/2014 609-49750-425200
93678 re sale -50.00 07/08/2014 609-49750-425200
93791 re sale 1,594.85 07/08/2014 609-49750-425200
94049 re sale -8.70 07/08/2014 609-49750-425200
94056 re sale 329.55 07/08/2014 609-49750-425200
80,477.23Check Total:
Vendor:1134 DAY DISTRIBUTING COMPANY Check Sequence: 28 ACH Enabled: True
756629 re sale 5,338.05 07/08/2014 609-49750-425200
757619 re sale 1,820.00 07/08/2014 609-49750-425200
758700 re sale 2,086.36 07/08/2014 609-49750-425200
758700 re sale 118.70 07/08/2014 609-49750-425400
9,363.11Check Total:
Vendor:2891 DISCOUNT POST & POLE Check Sequence: 29 ACH Enabled: False
844921 ZPARKS-PIONER - (13) assorted utility pole 261.00 07/08/2014 101-45201-421990
261.00Check Total:
Vendor:3782 DONNA DUNKERSON Check Sequence: 30 ACH Enabled: False
Reimbursement East Bridge Adopt a Park - reimburse flower purchases 111.15 07/08/2014 101-45201-440900
111.15Check Total:
Vendor:1152 ECHOSTAR SATELLITE LLC Check Sequence: 31 ACH Enabled: False
6/18/14 DISH 7/2-8/1/14 61.55 07/08/2014 609-49754-432500
61.55Check Total:
Vendor:1153 ECM PUBLISHERS INC Check Sequence: 32 ACH Enabled: True
113230 Ordinance 599A 6/19 138.45 07/08/2014 101-41310-435100
113231 ZZVINE - July PHN 6/19 110.76 07/08/2014 101-41910-435100
249.21Check Total:
Vendor:3632 EMERGENCY RESPONSE SOLUTIONS Check Sequence: 33 ACH Enabled: True
2305 (2) hose assembly 1,427.99 07/08/2014 101-42200-421990
2339 alt4xl2anc00g0; 4- charger cradle 282.66 07/08/2014 101-42200-421990
2357 4 - alt4sl2anc00g0 - 1/2 pd by grant 3,376.71 07/08/2014 101-42200-421990
5,087.36Check Total:
AP-Computer Check Proof List by Vendor (07/09/2014 - 1:37 PM)Page 6
Invoice No Description Amount Payment Date Acct Number Reference
Vendor:1680 EPIC PRODUCTS INC Check Sequence: 34 ACH Enabled: False
0448645 re-sale 382.50 07/08/2014 609-49750-425400
0448974 re-sale 108.00 07/08/2014 609-49750-425400
0448974-IN re-sale 108.00 07/08/2014 609-49750-425400
598.50Check Total:
Vendor:3680 BRIAN ESTREM Check Sequence: 35 ACH Enabled: False
5 July 2014 management fee 11,500.00 07/08/2014 655-49870-430700
11,500.00Check Total:
Vendor:1167 EXTREME BEVERAGE LLC Check Sequence: 36 ACH Enabled: False
261.655 re sale 234.50 07/08/2014 609-49750-425400
234.50Check Total:
Vendor:2600 FEDERAL COMMUNICATIONS COMMISSION Check Sequence: 37 ACH Enabled: False
R13P828118 FCC ID 828118 - Principal Amt; DCIA Amt: ect. 123.45 07/08/2014 655-49870-431970
123.45Check Total:
Vendor:2154 FEDERATED CO-OPS Check Sequence: 38 ACH Enabled: False
11397 Fuel for lift station at 326 Riverview Drive 645.84 07/08/2014 602-49490-421200
645.84Check Total:
Vendor:2273 FIBERNET MONTICELLO - ACH Check Sequence: 39 ACH Enabled: True
07/01/2014 C.H. Phone July 2014 809.09 07/08/2014 702-00000-432100
07/01/2014 C.H. Internet July 2014 99.95 07/08/2014 702-00000-432300
07/01/2014 C.H. Data Hosting July 2014 500.00 07/08/2014 702-00000-431990
07/01/2014 C.H. Repair/Mtc July 2014 250.00 07/08/2014 702-00000-440440
07/01/2014 C.H. TV July 2014 12.95 07/08/2014 101-41310-431990
07/01/2014 MCC PhoneJuly 2014 740.59 07/08/2014 702-00000-432100
07/01/2014 MCC Internet July 2014 10.00 07/08/2014 702-00000-432300
07/01/2014 MCC Cable July 2014 294.10 07/08/2014 226-45122-432500
07/01/2014 Ballfields Phone July 2014 40.13 07/08/2014 702-00000-432100
07/01/2014 Ballfields Internet July 2014 79.95 07/08/2014 702-00000-432300
07/01/2014 DMV Phone July 2014 287.36 07/08/2014 702-00000-432100
07/01/2014 DMV Internet July 2014 41.95 07/08/2014 702-00000-432300
07/01/2014 Hi-Way Phone July 2014 272.64 07/08/2014 702-00000-432100
07/01/2014 Hi-Way Internet July 2014 41.95 07/08/2014 702-00000-432300
07/01/2014 Fire Dept Phone July 2014 271.78 07/08/2014 702-00000-432100
07/01/2014 Fire Dept Internet July 2014 41.95 07/08/2014 702-00000-432300
AP-Computer Check Proof List by Vendor (07/09/2014 - 1:37 PM)Page 7
Invoice No Description Amount Payment Date Acct Number Reference
07/01/2014 Animal Shelter July 2014 29.95 07/08/2014 702-00000-432300
07/01/2014 P.W. Phone July 2014 370.12 07/08/2014 702-00000-432100
07/01/2014 P.W. Internet July 2014 69.95 07/08/2014 702-00000-432300
07/01/2014 Parks Phone July 2014 113.06 07/08/2014 702-00000-432100
07/01/2014 Prairie Center Phone July 2014 20.42 07/08/2014 702-00000-432100
07/01/2014 Sheriff Dept. Phone July 2014 68.47 07/08/2014 702-00000-432100
07/01/2014 Sheriff Dept. Internet July 2014 41.95 07/08/2014 702-00000-432300
4,508.31Check Total:
Vendor:3653 VICTOR FINCHAM Check Sequence: 40 ACH Enabled: False
201 (3.5) hr repair fence 472.50 07/08/2014 226-45122-440990
472.50Check Total:
Vendor:1184 FLAIL-MASTER Check Sequence: 41 ACH Enabled: False
103899-01 (2) Roller Bearing;(2) Conversion Roller brkt 496.08 07/08/2014 101-43120-422100
496.08Check Total:
Vendor:3748 JEFFREY D GARDNER Check Sequence: 42 ACH Enabled: True
07032014 tokens collection 15.00 07/08/2014 226-00000-220100
15.00Check Total:
Vendor:3762 GARRETTS DIAMOND CITY BREAD Check Sequence: 43 ACH Enabled: True
07032014 Farmers Market tokens 50.00 07/08/2014 226-00000-220100
50.00Check Total:
Vendor:1413 GOPHER STATE ONE CALL INC Check Sequence: 44 ACH Enabled: True
112082 (149) FTP tickets June (1/2) 230.95 07/08/2014 656-49877-422770
112082 (149) FTP tickets June (1/2) 230.95 07/08/2014 601-49440-422770
461.90Check Total:
Vendor:1223 HAWKINS INC Check Sequence: 45 ACH Enabled: True
3607820 H481 gal - phosphate liq; 462 gal - hydrofluosilicic acid; (10) 7,599.55 07/08/2014 601-49440-421600
7,599.55Check Total:
Vendor:1224 HD SUPPLY WATERWORKS LTD Check Sequence: 46 ACH Enabled: False
c370157 27 510r wiredmxu single port w/ ext battery option 3,753.00 07/08/2014 601-49440-422710
AP-Computer Check Proof List by Vendor (07/09/2014 - 1:37 PM)Page 8
Invoice No Description Amount Payment Date Acct Number Reference
3,753.00Check Total:
Vendor:2591 BRIAN HELLMAN Check Sequence: 47 ACH Enabled: False
2874 Mowing 5/4; 5/11; 5/18; 5/25 140.00 07/08/2014 217-41990-431050
2875 Mowing 5/4; 5/11; 5/18; 5/25 140.00 07/08/2014 101-42200-431050
2876 Mowing 5/4; 5/11; 5/18; 5/25 160.00 07/08/2014 101-45501-431050
440.00Check Total:
Vendor:3229 JEFF HOGLUND Check Sequence: 48 ACH Enabled: False
01617 Hoglund Sign & Graphic Mail Box Lettering Hunters Crossing 82.00 07/08/2014 101-43120-422600
82.00Check Total:
Vendor:3780 HOPKINS CHEMICAL Check Sequence: 49 ACH Enabled: False
2435 chemical 47.58 07/08/2014 101-43120-421990
47.58Check Total:
Vendor:1244 HORIZON COMMERCIAL POOL SUPPLY Check Sequence: 50 ACH Enabled: False
140602034 Chemical products 1,220.75 07/08/2014 226-45122-421600
1,220.75Check Total:
Vendor:1259 JJ TAYLOR DISTRIBUTING Check Sequence: 51 ACH Enabled: False
2237038 re sale 1,659.70 07/08/2014 609-49750-425200
2237079 re sale 58.30 07/08/2014 609-49750-425200
1,718.00Check Total:
Vendor:1260 JME OF MONTICELLO INC Check Sequence: 52 ACH Enabled: True
sys46961 Engine 40 - battery; batt lug 245.54 07/08/2014 101-42200-422110
245.54Check Total:
Vendor:1263 JOHNSON BROS WHOLESALE LIQUOR Check Sequence: 53 ACH Enabled: False
1875165 freight 59.78 07/08/2014 609-49750-433300
1875165 re sale 4,015.45 07/08/2014 609-49750-425100
1875166 freight 27.80 07/08/2014 609-49750-433300
1875166 re sale 817.95 07/08/2014 609-49750-425300
1876491 re sale 1,531.22 07/08/2014 609-49750-425100
1876491 freight 18.76 07/08/2014 609-49750-433300
1876492 re sale 1,024.80 07/08/2014 609-49750-425300
1876492 freight 25.02 07/08/2014 609-49750-433300
AP-Computer Check Proof List by Vendor (07/09/2014 - 1:37 PM)Page 9
Invoice No Description Amount Payment Date Acct Number Reference
1876493 re sale 52.00 07/08/2014 609-49750-425200
1879359 re sale 909.90 07/08/2014 609-49750-425300
1879359 freight 33.36 07/08/2014 609-49750-433300
1882039 freight 20.85 07/08/2014 609-49750-433300
1882039 re sale 1,662.40 07/08/2014 609-49750-425100
1882040 re sale 41.35 07/08/2014 609-49750-425400
1882040 re sale 3,503.75 07/08/2014 609-49750-425300
1882040 freight 73.67 07/08/2014 609-49750-433300
1882041 re sale 125.94 07/08/2014 609-49750-425200
1885068 freight 53.51 07/08/2014 609-49750-433300
1885068 re sale 3,347.48 07/08/2014 609-49750-425100
1885069 re sale 1,560.25 07/08/2014 609-49750-425100
1885069 freight 54.21 07/08/2014 609-49750-433300
1887244 re sale 2,215.74 07/08/2014 609-49750-425100
1887244 freight 30.58 07/08/2014 609-49750-433300
1887245 freight 61.16 07/08/2014 609-49750-433300
1887245 re sale 2,064.25 07/08/2014 609-49750-425300
1887245 re sale 168.89 07/08/2014 609-49750-425400
1891000 re sale 2,536.15 07/08/2014 609-49750-425100
1891000 freight 30.34 07/08/2014 609-49750-433300
1891001 freight 13.90 07/08/2014 609-49750-433300
1891001 re sale 414.60 07/08/2014 609-49750-425300
1891002 re sale 369.00 07/08/2014 609-49750-425200
622606 re sale -51.04 07/08/2014 609-49750-425300
623009 re sale -15.99 07/08/2014 609-49750-425300
623603 re sale -9.00 07/08/2014 609-49750-425300
26,788.03Check Total:
Vendor:3475 KUECHLE UNDERGROUND INC Check Sequence: 54 ACH Enabled: False
Voucher No. 5 12C002 - Voucher No. 5 West 7th Street Extension 227,465.98 07/08/2014 400-43300-459010
227,465.98Check Total:
Vendor:1290 LEAGUE OF MINNESOTA CITIES Check Sequence: 55 ACH Enabled: False
200567 (5) registration - Land Use Basics 150.00 07/08/2014 101-41910-433200
200685 (1) registration - Land Use Basics - A.S. 30.00 07/08/2014 101-41910-433200
180.00Check Total:
Vendor:1291 LEAGUE OF MN CITIES INS TRUST Check Sequence: 56 ACH Enabled: False
47302 7/11/14 Fireworks Endorsement 250.00 07/08/2014 101-49240-436990
AP-Computer Check Proof List by Vendor (07/09/2014 - 1:37 PM)Page 10
Invoice No Description Amount Payment Date Acct Number Reference
250.00Check Total:
Vendor:2304 LEGACY MECHANICAL SERVICES LLC Check Sequence: 57 ACH Enabled: False
3903 Labor - plumbing service - unit #7 & unit #3 735.00 07/08/2014 655-49870-440100
735.00Check Total:
Vendor:3725 JIM AND CHARLOTTE LIEN Check Sequence: 58 ACH Enabled: False
FNM Refund 001-0166 5.23 05/28/2014 655-00000-115025
5.23Check Total:
Vendor:3752 MARK LILLO Check Sequence: 59 ACH Enabled: False
Escrow Refund ZFAITH - escrow refund 1,765.79 07/08/2014 101-00000-220110
1,765.79Check Total:
Vendor:1297 LOCATORS & SUPPLIES INC Check Sequence: 60 ACH Enabled: False
0224542-IN (1) soft bag 171.37 07/08/2014 656-49877-421990
171.37Check Total:
Vendor:1303 M AMUNDSON LLP Check Sequence: 61 ACH Enabled: True
176162 re sale 1,414.17 07/08/2014 609-49750-425500
176162 re sale 464.46 07/08/2014 609-49750-425400
1,878.63Check Total:
Vendor:2819 MADDEN GALANTER HANSEN LLP Check Sequence: 62 ACH Enabled: False
6/1/14 Labor Relations Services through 5/31/14 286.00 07/08/2014 101-41800-430400
286.00Check Total:
Vendor:1229 MAJIRS ADVERTISING & DESIGN INC Check Sequence: 63 ACH Enabled: True
508 Experience Monticello back cover full page ad 820.00 07/08/2014 655-49870-434990
517 Experience Monticello 1/4l page ad 295.00 07/08/2014 226-45122-434990
1,115.00Check Total:
Vendor:3745 MANSFIELD OIL COMPANY Check Sequence: 64 ACH Enabled: True
637224 409 gallons diesel 1,445.42 07/08/2014 101-43120-421200
637225 634 gallons unleaded 2,085.73 07/08/2014 101-43120-421200
679592 578 gallons diesel 1,967.23 07/08/2014 101-43120-421200
679593 610 gallons unleaded 1,998.48 07/08/2014 101-43120-421200
AP-Computer Check Proof List by Vendor (07/09/2014 - 1:37 PM)Page 11
Invoice No Description Amount Payment Date Acct Number Reference
7,496.86Check Total:
Vendor:1308 MARCO INC Check Sequence: 65 ACH Enabled: True
255797888 6/10-7/10/14 contract 3,089.19 07/08/2014 702-00000-441500
255797888 utx - LIQ portion 7.14% 6/10-7/10/14 contract 343.14 07/08/2014 702-00000-441500
255797888 utx - FNM portion 14.29% 6/10-7/10/14 contract 686.76 07/08/2014 702-00000-441500
255797888 utx - MCC portion 14.29% 6/10-7/10/14 contract 686.76 07/08/2014 702-00000-441500
4,805.85Check Total:
Vendor:1314 MCDOWALL COMPANY Check Sequence: 66 ACH Enabled: False
219190 5/20/14 Labor - cooler repair 341.25 07/08/2014 609-49754-440440
341.25Check Total:
Vendor:3669 MEDIA MAGNATE Check Sequence: 67 ACH Enabled: False
1218 Account transfer & setup of new website to "live" status 125.00 07/08/2014 226-45122-430920
125.00Check Total:
Vendor:1318 JONATHAN CALEB MELLBERG Check Sequence: 68 ACH Enabled: True
6/23/14 6/23/14 Council meeting recording 80.00 07/08/2014 101-41110-431990
80.00Check Total:
Vendor:1330 CITY OF MINNEAPOLIS Check Sequence: 69 ACH Enabled: True
400413005052 (213) transactions - May 2014 191.70 07/08/2014 101-42100-431990
400413005052 (1) transactions - November 2013 0.90 07/08/2014 101-42100-431990
192.60Check Total:
Vendor:2179 MINNESOTA 9-1-1 PROGRAM Check Sequence: 70 ACH Enabled: True
Jun - 14 June 2014 911 Wright Co 839.55 07/08/2014 655-00000-208170
839.55Check Total:
Vendor:1717 MINNESOTA MUNICIPAL UTILITIES ASSOCIATION Check Sequence: 71 ACH Enabled: False
43458 Safety Mgmt Program 3rd qtr 2014 1,837.50 07/08/2014 101-41800-431960
1,837.50Check Total:
Vendor:1341 MMKR Check Sequence: 72 ACH Enabled: True
35869 Progress billing - services completed through 5/31/14 8,500.00 07/08/2014 101-41540-430100
AP-Computer Check Proof List by Vendor (07/09/2014 - 1:37 PM)Page 12
Invoice No Description Amount Payment Date Acct Number Reference
8,500.00Check Total:
Vendor:1738 MN DEPT OF HEALTH Check Sequence: 73 ACH Enabled: False
Qtr 2 2014 Community Water Supply Service Connection Fee 6,462.00 07/08/2014 601-49440-443750
6,462.00Check Total:
Vendor:1845 MN DEPT OF LABOR & INDUSTRY Check Sequence: 74 ACH Enabled: False
June 2014 Conf# 20074171109 Qtr 2 2014 Permits 3,406.07 07/08/2014 101-00000-208110
June 2014 Conf# 20074171109 Qtr 2 2014 Permits -18.90 07/08/2014 101-00000-208110
June 2014 Conf# 20074171109 Qtr 2 2014 Permits 18.90 07/08/2014 101-42400-343000
June 2014 Conf# 20074171109 Qtr 2 2014 Permits -136.24 07/08/2014 101-42400-343000
3,269.83Check Total:
Vendor:1743 CITY OF MONTICELLO Check Sequence: 75 ACH Enabled: False
6/19/14 Bus fare - Friendship Island 68.00 07/08/2014 226-45127-421981
6/19/14 utx - toy for childcare 12.00 07/08/2014 226-45127-421740
6/19/14 Mileage reimb 5/17/14 Brooklyn Pk 33.60 07/08/2014 226-45122-433100
6/19/14 utx - (6) bike helmets - Friendship Island 18.00 07/08/2014 226-45127-421981
131.60Check Total:
Vendor:1798 MOORES EXCAVATING INC Check Sequence: 76 ACH Enabled: False
3339 (2) 5 yd loads pul black dirt - picked up 149.63 07/08/2014 101-43120-422500
149.63Check Total:
Vendor:1629 MP NEXLEVEL LLC Check Sequence: 77 ACH Enabled: True
112956 (12) SEB 101 (P) 3,900.00 07/08/2014 656-49877-431990
3,900.00Check Total:
Vendor:1390 MTI DISTRIBUTING INC Check Sequence: 78 ACH Enabled: False
962494 (2) wahser shim; (2)bushing fork; (2) screw-lock; bearing; v-bel 384.96 07/08/2014 101-45201-422100
384.96Check Total:
Vendor:1887 NENA Check Sequence: 79 ACH Enabled: False
2763 7/1/14-15 FNMO Company Identifier Subscription 250.00 07/08/2014 655-49870-443700
250.00Check Total:
Vendor:2518 NEOFUNDS BY NEOPOST Check Sequence: 80 ACH Enabled: False
AP-Computer Check Proof List by Vendor (07/09/2014 - 1:37 PM)Page 13
Invoice No Description Amount Payment Date Acct Number Reference
6/26/14 Account Number 7900 0400 6327 5196 1,000.00 07/08/2014 101-00000-155010
1,000.00Check Total:
Vendor:1913 NEW FRANCE WINE Check Sequence: 81 ACH Enabled: False
91054 re sale 836.00 07/08/2014 609-49750-425300
91054 freight 20.00 07/08/2014 609-49750-433300
856.00Check Total:
Vendor:2134 NFL NETWORK Check Sequence: 82 ACH Enabled: True
118843 NFL May 2014 692.16 07/08/2014 655-49860-430920
692.16Check Total:
Vendor:1401 NORTHWEST ASSOCIATED CONSULTANTS INC Check Sequence: 83 ACH Enabled: True
21325 Meadow Oak Comp Plan - see Credit Memo 21325-CM 1,764.10 07/08/2014 101-41910-431990
21325 ZGOODW - Goodwill Retail Site Plan 568.10 07/08/2014 101-00000-220110
21325 ZTRAIN - School Distric Alternative Learning Program CUP 1,328.00 07/08/2014 101-00000-220110
21325 ZZAMAX - Amax PUD Amendment 1,210.95 07/08/2014 101-00000-220110
21325 PREDSN - Kingdom Hall Development 339.32 07/08/2014 101-41910-431990
21325 PREDSN - Wes-Phal Site Plan 179.40 07/08/2014 101-41910-431990
21325 PREDSN - Block 34 Miller/Schneider 423.81 07/08/2014 101-41910-431990
21325 PREDSN - Hoglund Subdivision 194.35 07/08/2014 101-41910-431990
21325 PREDSN - Block 35 Welsh 259.36 07/08/2014 101-41910-431990
21325-CM Meadow Oak Comp Plan credit - refer to inv 21325 -1,764.10 07/08/2014 101-41910-431990
21341 Meadow Oak Comp Plan Amendment 1,498.60 07/08/2014 101-41910-431990
21367 General - Meadow Oak Comp Plan Amendment 165.10 07/08/2014 101-41910-431990
21367 General 1,517.96 07/08/2014 101-41910-431990
21368 ZGOODW - Goodwill Retail Site Plan 119.60 07/08/2014 101-00000-220110
21368 ZCOMM8 - IRET - Meadow Oak 1,584.55 07/08/2014 101-00000-220110
21368 ZZAMAX - Amax PUD Amendment 74.75 07/08/2014 101-00000-220110
21368 Xcel Storage Building 149.50 07/08/2014 101-00000-220110
21368 ZZVINE - Vine Street Place Townhomes 1,314.95 07/08/2014 101-00000-220110
21368 PREDSN - Sharp Assoc Industrial 149.50 07/08/2014 101-41910-431990
21369 Meetings - 6/3/14 Planning Comm: 6/9/14 CC meeting 300.00 07/08/2014 101-41910-431990
11,377.80Check Total:
Vendor:1405 OFFICEMAX INCORPORATED Check Sequence: 84 ACH Enabled: False
432282 (2) pk heavy duty tape; (1) pk AA batteries 72.47 07/08/2014 101-43110-420990
72.47Check Total:
AP-Computer Check Proof List by Vendor (07/09/2014 - 1:37 PM)Page 14
Invoice No Description Amount Payment Date Acct Number Reference
Vendor:1412 OMANN BROTHERS INC Check Sequence: 85 ACH Enabled: False
10804 Omann Brothers - 2.38- spwea24b 126.62 07/08/2014 101-43120-422400
10861 2.38- spwea24b 426.66 07/08/2014 101-43120-422400
10865 2.38- spwea24b 53.73 07/08/2014 101-43120-422400
10877 (4.12) spwea240b marerials 219.18 07/08/2014 101-43120-422400
826.19Check Total:
Vendor:2131 ONVOY VOICE SERVICES Check Sequence: 86 ACH Enabled: True
140702008669 Voice - 7/2-8/1/14 A-Links; 6/25/14 Dips 1,360.58 07/08/2014 655-49860-430910
140702010659 Voice - Operator Services: Wholesale Switching & 800 Switched 426.43 07/08/2014 655-49860-430910
1,787.01Check Total:
Vendor:3785 DAVE OSBORN Check Sequence: 87 ACH Enabled: False
7/12/14 7/12/14 1-2pm appearance 500.00 07/08/2014 609-49750-443990
500.00Check Total:
Vendor:1273 PAUSTIS & SONS WINE CO Check Sequence: 88 ACH Enabled: False
8454786 re sale 915.42 07/08/2014 609-49750-425300
8454786 freight 12.50 07/08/2014 609-49750-433300
8454970 re sale 246.00 07/08/2014 609-49750-425300
8454970 freight 10.50 07/08/2014 609-49750-433300
1,184.42Check Total:
Vendor:3340 PERFECTION PACKAGING INC Check Sequence: 89 ACH Enabled: False
111655 re-sale 125.40 07/08/2014 226-45203-425410
125.40Check Total:
Vendor:1427 PHILLIPS WINE & SPIRITS CO Check Sequence: 90 ACH Enabled: False
2620459 re sale 2,694.75 07/08/2014 609-49750-425100
2620459 freight 25.02 07/08/2014 609-49750-433300
2620460 freight 29.19 07/08/2014 609-49750-433300
2620460 re sale 796.85 07/08/2014 609-49750-425300
2621334 freight 68.57 07/08/2014 609-49750-433300
2621334 re sale 6,546.62 07/08/2014 609-49750-425100
2621335 re sale 1,078.30 07/08/2014 609-49750-425300
2621335 freight 33.36 07/08/2014 609-49750-433300
2623264 re sale 2,100.08 07/08/2014 609-49750-425100
2623264 freight 25.02 07/08/2014 609-49750-433300
2624073 freight 29.43 07/08/2014 609-49750-433300
AP-Computer Check Proof List by Vendor (07/09/2014 - 1:37 PM)Page 15
Invoice No Description Amount Payment Date Acct Number Reference
2624073 re sale 3,201.03 07/08/2014 609-49750-425100
2624074 re sale 448.00 07/08/2014 609-49750-425300
2624074 re sale 66.75 07/08/2014 609-49750-425400
2624074 freight 6.95 07/08/2014 609-49750-433300
2624963 freight 1.39 07/08/2014 609-49750-433300
2624964 freight 9.73 07/08/2014 609-49750-433300
2624964 re sale 428.70 07/08/2014 609-49750-425300
2627021 freight 52.82 07/08/2014 609-49750-433300
2627021 re sale 4,655.00 07/08/2014 609-49750-425100
2627022 re sale 480.00 07/08/2014 609-49750-425300
2627022 re sale 204.80 07/08/2014 609-49750-425100
2627022 freight 18.07 07/08/2014 609-49750-433300
2627978 re sale 6,071.91 07/08/2014 609-49750-425100
2627978 freight 75.35 07/08/2014 609-49750-433300
2627979 re sale 251.00 07/08/2014 609-49750-425300
2627979 re sale 92.95 07/08/2014 609-49750-425400
2627979 freight 12.51 07/08/2014 609-49750-433300
2628420 freight 2.78 07/08/2014 609-49750-433300
2628420 re sale 211.95 07/08/2014 609-49750-425100
2628421 re sale 32.70 07/08/2014 609-49750-425400
2628421 freight 1.39 07/08/2014 609-49750-433300
3529310 re sale -11.54 07/08/2014 609-49750-425100
3529678 re sale -91.39 07/08/2014 609-49750-425100
29,650.04Check Total:
Vendor:3686 RANDYS SANITATION INC Check Sequence: 91 ACH Enabled: True
1-209488-3 July 2014 - shredding service 15.30 07/08/2014 655-49870-431990
1-209490-9 July 2014 - shredding service 15.30 07/08/2014 101-41940-431990
4-209489-1 documnt dest console 15.30 07/08/2014 217-41990-421990
45.90Check Total:
Vendor:1474 PATRICIA A SALZWEDEL Check Sequence: 92 ACH Enabled: True
7/15/14 Contract 1,593.75 07/08/2014 101-42700-431200
1,593.75Check Total:
Vendor:2568 PATRICK A SAWATZKE Check Sequence: 93 ACH Enabled: False
07072014 Movie in the Park sign - 16 days 96.19 07/08/2014 226-45127-434990
07072014 Music on River sign rental 5 days 64.13 07/08/2014 226-45127-434990
160.32Check Total:
AP-Computer Check Proof List by Vendor (07/09/2014 - 1:37 PM)Page 16
Invoice No Description Amount Payment Date Acct Number Reference
Vendor:3735 LORI J SCHOENBORN Check Sequence: 94 ACH Enabled: False
6/26/14 SilverSneakers Classic 6/26/14 25.00 07/08/2014 226-45127-430120
25.00Check Total:
Vendor:2443 SECURITAS SECURITY SERVICES USA INC Check Sequence: 95 ACH Enabled: False
w4429920 R2217 Greene wedding security 179.56 07/08/2014 226-45122-431992
179.56Check Total:
Vendor:3753 SHAFER CONSTRUCTION Check Sequence: 96 ACH Enabled: False
Escrow Refund ZBATCH - escrow refund 1,205.75 07/08/2014 101-00000-220110
1,205.75Check Total:
Vendor:1904 SHEBOYGAN PAINT COMPANY Check Sequence: 97 ACH Enabled: False
398040 hydrant repair 346.04 07/08/2014 601-49440-422220
346.04Check Total:
Vendor:2497 SHERBURNE WRIGHT CABLE COMMISSION Check Sequence: 98 ACH Enabled: True
Qtr 1 2013 PEG FiberNet Monticello PEG fees - Qtr 1 2013 2,476.90 07/08/2014 655-49870-432500
Qtr 1 2014 PEG FiberNet Monticello PEG fees - Qtr 1 2014 2,143.70 07/08/2014 655-49870-432500
Qtr 2 2013 PEG FiberNet Monticello PEG fees - Qtr 2 2013 2,472.65 07/08/2014 655-49870-432500
Qtr 3 2013 PEG FiberNet Monticello PEG fees - Qtr 3 2013 2,373.20 07/08/2014 655-49870-432500
Qtr 4 2012 PEG FiberNet Monticello PEG fees - Qtr 4 2012 2,567.85 07/08/2014 655-49870-432500
Qtr 4 2013 PEG FiberNet Monticello PEG fees - Qtr 4 2013 2,233.80 07/08/2014 655-49870-432500
14,268.10Check Total:
Vendor:3628 SHANNON SIMON Check Sequence: 99 ACH Enabled: True
6/19/14 Reimb 6/19/14 meals/mileage St Paul testing/training S.S. 73.17 07/08/2014 217-41990-433100
73.17Check Total:
Vendor:1490 CYNTHIA R SIMPSON Check Sequence: 100 ACH Enabled: False
894119 June 2014 cleaning 100.00 07/08/2014 101-42200-431100
100.00Check Total:
Vendor:3688 SOURCEONE SOLUTIONS LLC Check Sequence: 101 ACH Enabled: True
4168 June billing - postage 535.02 07/08/2014 655-49870-431800
4168 June billing 2,055.82 07/08/2014 655-49870-431800
4168 (1395) Walk N Roll insert FNM June billing 116.45 07/08/2014 101-45130-444140
AP-Computer Check Proof List by Vendor (07/09/2014 - 1:37 PM)Page 17
Invoice No Description Amount Payment Date Acct Number Reference
2,707.29Check Total:
Vendor:3309 SOUTHERN WINE & SPIRITS OF MINNESOTA Check Sequence: 102 ACH Enabled: False
1173320 re sale 1,050.02 07/08/2014 609-49750-425100
1173320 freight 12.50 07/08/2014 609-49750-433300
1173321 re sale 40.12 07/08/2014 609-49750-425400
1173321 re sale 42.52 07/08/2014 609-49750-425500
1173321 freight 2.50 07/08/2014 609-49750-433300
1173322 freight 17.92 07/08/2014 609-49750-433300
1173322 re sale 1,068.64 07/08/2014 609-49750-425300
1175778 freight 1.25 07/08/2014 609-49750-433300
1175779 freight 17.50 07/08/2014 609-49750-433300
1175779 re sale 1,588.57 07/08/2014 609-49750-425100
1175780 re sale 65.67 07/08/2014 609-49750-425400
1175780 freight 2.50 07/08/2014 609-49750-433300
1175781 re sale 1,264.92 07/08/2014 609-49750-425300
1175781 freight 17.69 07/08/2014 609-49750-433300
1178142 re sale 429.29 07/08/2014 609-49750-425300
1178142 freight 5.40 07/08/2014 609-49750-433300
1178143 freight 4.73 07/08/2014 609-49750-433300
1178143 re sale 781.50 07/08/2014 609-49750-425300
6,413.24Check Total:
Vendor:2603 SPECIALTY TURF & AG, INC Check Sequence: 103 ACH Enabled: False
I38987 (40) straw bale; (6) mulch; (2)ryegrass; grass mat 713.10 07/08/2014 101-45201-422500
713.10Check Total:
Vendor:1497 SPECTRUM SUPPLY COMPANY Check Sequence: 104 ACH Enabled: True
242267 2 Tissue 1 Ply 96/1000ct 129.26 07/08/2014 101-43120-422400
242897 (2) 500ct liner; (2) h/d liner; multi fold white 4000ct 150.33 07/08/2014 101-42200-421990
242902 Tissue 2 Ply 9 " 12/1000 case 32.87 07/08/2014 101-45501-421990
312.46Check Total:
Vendor:1886 SWANK MOTION PICTURES INC Check Sequence: 105 ACH Enabled: False
RG 1938434 DVD - Gravity - planned usage 6/28/14 399.71 07/08/2014 226-45127-421980
399.71Check Total:
Vendor:1522 THORPE DISTRIBUTING COMPANY Check Sequence: 106 ACH Enabled: True
319798 -16.80 07/08/2014 609-49750-425200
AP-Computer Check Proof List by Vendor (07/09/2014 - 1:37 PM)Page 18
Invoice No Description Amount Payment Date Acct Number Reference
756221 re sale -101.70 07/08/2014 609-49750-425200
756230 re sale -104.40 07/08/2014 609-49750-425200
830187 re sale 190.00 07/08/2014 609-49750-425200
830321 re sale 83.05 07/08/2014 609-49750-425400
830322 re sale 12,662.20 07/08/2014 609-49750-425200
831749 re sale 123.00 07/08/2014 609-49750-425200
831750 re sale 251.00 07/08/2014 609-49750-425400
831751 re sale 25,094.18 07/08/2014 609-49750-425200
833137 re sale 64.50 07/08/2014 609-49750-425200
833137 re sale 23.60 07/08/2014 609-49750-425300
833138 re sale 18.55 07/08/2014 609-49750-425400
833532 re sale 353.00 07/08/2014 609-49750-425200
38,640.18Check Total:
Vendor:3786 MICK TINGELHOFF Check Sequence: 107 ACH Enabled: False
7/12/14 7/12/14 1-2pm appearance 500.00 07/08/2014 609-49754-443990
500.00Check Total:
Vendor:3776 TITAN FIRE PROTECTION Check Sequence: 108 ACH Enabled: False
Refund Parial refund 65% of bldg permit fee 20.16 07/08/2014 101-42400-322110
20.16Check Total:
Vendor:2397 TOWMASTER Check Sequence: 109 ACH Enabled: False
359782 Towmaster - light flasher dot led 204.43 07/08/2014 101-43120-422400
204.43Check Total:
Vendor:3625 ULTEIG ENGINEERS INC Check Sequence: 110 ACH Enabled: False
42717 ZTOWER - Services through 1/31/14 4,673.50 07/08/2014 101-41910-430300
44833 ZTOWER - Services through 3/30-4/30/14 1,621.20 07/08/2014 101-41910-430300
6,294.70Check Total:
Vendor:2268 UNIVERSAL SERVICE ADMINISTRATIVE COMPANY Check Sequence: 111 ACH Enabled: True
UBDI0000702516 FiberNet Monticello Filer 499 ID: 828118 - support Mechanism 2,718.80 07/08/2014 655-49870-431970
UBDI0000702516 FiberNet Monticello Filer 499 ID: 828118 - Late Filing Sanction 200.00 07/08/2014 655-49870-431970
2,918.80Check Total:
Vendor:1544 US POSTAL SERVICE Check Sequence: 112 ACH Enabled: False
6/6/14 PI 42 - UB Qtr 1 2014 2014 delinquent (958) pcs (1/2) 220.34 07/08/2014 602-49490-432200
AP-Computer Check Proof List by Vendor (07/09/2014 - 1:37 PM)Page 19
Invoice No Description Amount Payment Date Acct Number Reference
6/6/14 PI 42 - UB Qtr 1 2014 2014 delinquent (958) pcs (1/2) 220.34 07/08/2014 601-49440-432200
440.68Check Total:
Vendor:1550 VEOLIA WATER N AM OPERATING SERV LLC VEOLIA WATER N AM OPERATIONS INC Check Sequence: 113 ACH Enabled: False
00038266 July 2014 68,300.00 07/08/2014 602-49480-430800
68,300.00Check Total:
Vendor:1550 VEOLIA WATER N AM OPERATING SERV LLC VEOLIA WATER N AM OPERATIONS INC Check Sequence: 114 ACH Enabled: False
00038396 12C003 - Progress Inv #18 WWTP - Upgrades Ph 1 Design 1,350.00 07/08/2014 602-00000-165010
1,350.00Check Total:
Vendor:1552 VIKING COCA COLA BOTTLING CO Check Sequence: 115 ACH Enabled: True
1408522 re sale 281.40 07/08/2014 609-49750-425400
1413483 re sale 216.90 07/08/2014 609-49750-425400
1417822 re sale -64.00 07/08/2014 609-49750-425400
1417823 re sale 480.20 07/08/2014 609-49750-425400
914.50Check Total:
Vendor:1684 VINOCOPIA Check Sequence: 116 ACH Enabled: True
101059 re sale 276.75 07/08/2014 609-49750-425100
101059 freight 2.50 07/08/2014 609-49750-433300
101448 freight 27.00 07/08/2014 609-49750-433300
101448 re sale 109.75 07/08/2014 609-49750-425200
101448 re sale 230.75 07/08/2014 609-49750-425100
101448 re sale 868.00 07/08/2014 609-49750-425300
101449 re sale 230.50 07/08/2014 609-49750-425100
101449 freight 5.00 07/08/2014 609-49750-433300
101848 re sale 1,329.75 07/08/2014 609-49750-425100
101848 re sale 64.00 07/08/2014 609-49750-425300
101848 freight 20.00 07/08/2014 609-49750-433300
3,164.00Check Total:
Vendor:3787 STU VOIGT Check Sequence: 117 ACH Enabled: False
7/12/14 7/12/14 1-2pm appearance 500.00 07/08/2014 609-49754-443990
500.00Check Total:
Vendor:1561 WATER LABORATORIES INC Check Sequence: 118 ACH Enabled: False
4356 water testing June 2014 225.00 07/08/2014 601-49440-422740
AP-Computer Check Proof List by Vendor (07/09/2014 - 1:37 PM)Page 20
Invoice No Description Amount Payment Date Acct Number Reference
225.00Check Total:
Vendor:1567 WES OLSON ELECTRIC LLC Check Sequence: 119 ACH Enabled: False
6680 Labor - moved dimmer in teen room 97.50 07/08/2014 226-45122-440100
97.50Check Total:
Vendor:2651 WILSON DEVELOPMENT SERVICES LLC Check Sequence: 120 ACH Enabled: True
22993 MGFARM - Acquisition & Relocation Serv - Montgomery Frms-service 354.00 07/08/2014 213-46522-431990
22993 MGFARM - Acquisition & Relocation Serv - Montgomery Frms-expense 3.75 07/08/2014 213-46522-431990
357.75Check Total:
Vendor:2728 WINDSTREAM COMMUNICATIONS Check Sequence: 121 ACH Enabled: False
14160-76862 6/10-7/9/14 Usage charges - Intrastate 2.84 07/08/2014 655-49860-430910
2.84Check Total:
Vendor:1573 WINE MERCHANTS INC Check Sequence: 122 ACH Enabled: False
507889 re sale 23.00 07/08/2014 609-49750-425400
507889 re sale 1,031.87 07/08/2014 609-49750-425300
507889 freight 13.20 07/08/2014 609-49750-433300
508841 re sale 480.00 07/08/2014 609-49750-425300
508841 freight 8.34 07/08/2014 609-49750-433300
509738 re sale 334.00 07/08/2014 609-49750-425300
509738 freight 4.17 07/08/2014 609-49750-433300
1,894.58Check Total:
Vendor:1209 WIRTZ BEVERAGE MINNESOTA WINE & SPIRITS Check Sequence: 123 ACH Enabled: False
08011004 re sale -24.41 07/08/2014 609-49750-425100
08011005 re sale -27.59 07/08/2014 609-49750-425100
1080194182 re sale 5,278.41 07/08/2014 609-49750-425100
1080194182 re sale 877.75 07/08/2014 609-49750-425300
1080194182 re sale 42.00 07/08/2014 609-49750-425400
1080194182 freight 77.42 07/08/2014 609-49750-433300
1080197316 re sale 2,298.40 07/08/2014 609-49750-425100
1080197316 re sale 496.00 07/08/2014 609-49750-425300
1080197316 re sale 36.00 07/08/2014 609-49750-425400
1080197316 freight 54.60 07/08/2014 609-49750-433300
1080199758 re sale 1,354.84 07/08/2014 609-49750-425100
1080199758 re sale 40.00 07/08/2014 609-49750-425300
1080199758 freight 19.87 07/08/2014 609-49750-433300
AP-Computer Check Proof List by Vendor (07/09/2014 - 1:37 PM)Page 21
Invoice No Description Amount Payment Date Acct Number Reference
2080046240 re sale -114.18 07/08/2014 609-49750-425100
2080046241 re sale -135.00 07/08/2014 609-49750-425100
10,274.11Check Total:
Vendor:2645 WRIGHT CO AUDITOR-TREAS Check Sequence: 124 ACH Enabled: False
055-14 2014 Assessment Contract 49,831.50 07/08/2014 101-41550-431250
49,831.50Check Total:
Vendor:1577 WRIGHT CO AUDITOR-TREAS - ACH Check Sequence: 125 ACH Enabled: True
6/19/14 Fines and Fees May 2014 3,805.28 07/08/2014 101-00000-208020
3,805.28Check Total:
Vendor:1577 WRIGHT CO AUDITOR-TREAS - ACH Check Sequence: 126 ACH Enabled: True
6/19/14 July 2014 91,250.00 07/08/2014 101-42100-430500
91,250.00Check Total:
Vendor:1584 WSB & ASSOCIATES INC Check Sequence: 127 ACH Enabled: True
10102701157 Monticello Maps 765.50 07/08/2014 101-41910-430300
765.50Check Total:
Total for Check Run:
Total of Number of Checks:
821,070.73
127
AP-Computer Check Proof List by Vendor (07/09/2014 - 1:37 PM)Page 22
The preceding list of bills payable was reviewed and approved for payment.
Date: 7/14/14 Approved by:_______________________________________
Mayor Clint Herbst
CityCouncilAgenda:7/14/2014
1
5B.ConsiderationofapprovingnewhiresanddeparturesforCitydepartments (TE)
A.REFERENCEANDBACKGROUND:
TheCouncilisaskedtoratifythehiringanddeparturesofemployeesthathaveoccurred
recentlyinthedepartmentslisted.ItisrecommendedthattheCouncilofficiallyratifythe
hiring/departureofalllistedemployeesincludingpart-timeandseasonalworkers.
A1.BudgetImpact:(positionsaregenerallyincludedinbudget)
A2.StaffWorkLoadImpact:Ifnewpositions,theremaybesometraining
involved.Ifterminatedpositions,existingstaffwouldpickupthosehours,as
needed,untilreplaced.
B.ALTERNATIVEACTIONS:
1.Motiontoratifythehire/departuresoftheemployeesasidentifiedontheattached
list.
2.Motiontodenytherecommendedhiresanddepartures.
C.RECOMMENDATION:
BystatutetheCityCouncilhastheauthoritytoapproveallhires/departures.Citystaff
recommendsAlternative#1,fortheCounciltoapprovethehiresand/ordeparturesas
listed.
D.SUPPORTINGDATA:
Listofnew/terminatedemployees
Name Title Department Hire Date Class
Laura Bunker Fitness Instructor MCC 7/14/14 PT
Lauren Nemeth DMV Clerk DMV 7/14/14 PT
Name Reason Department Last Day Class
Nicole Hayda Voluntary MCC 3/18/2014 PT
Ronda Jungman Voluntary MCC 4/24/2014 PT
Darion Lewis Voluntary MCC 5/31/14 PT
Noah Haaland Voluntary MCC 6/17/14 PT
Margaret Carey Voluntary MCC 6/26/14 PT
Andrew Carlson Involuntary FNM 7/3/14 Seasonal
Paul Froiland Voluntary MCC 7/3/14 FT
Jaymon DeMarais Voluntary Water Dept 7/8/2014 Seasonal
Annie Zimmerman Voluntary Finance 7/14/14 FT
Shannon Simon Voluntary DMV 7/25/14 PT
NEW EMPLOYEES
TERMINATING EMPLOYEES
New Hire and Terms City Council 2014: 7/11/2014
CityCouncilAgenda:07/14/14
1
5C.ConsiderationofadoptingResolution#2014-068approvinganAssessment
Agreementandcertifyingspecialassessmentsfor503MapleStreet(SwanRiver
MontessoriSchool)totheWrightCountyAuditorfortaxyearpayable2015.
Applicant:SRCSBuildingCompany (AS)
A.REFERENCEANDBACKGROUND:
SwanRiverBuildingCompanyhasrequestedthattheCityconsiderassessingthe
applicableSAC/WACchargesfortheirdevelopmentsite.
TheCityhasallowedSACandWACtobeassessedbyagreementinthepast,andas
such,thisrequestisconsistentwithpastpractice.
SwanRiverhasalsorequestedthatreviewcostsinexcessofescrowdeposits,whichtotal
$5,269.65,beassessedaspartoftheagreement.SwanRiverhasalreadypaid$4,950in
escrowtodate;thecostsassociatedwiththeplanningandengineeringreviewforthe
developmentandfinalstagePUDportionoftheprojecttotals$10,219.65.
A1.BudgetImpact:Thetotalamounttobeassessedis$29,001.35.Theamountwill
beassessedover10yearsataninterestrate5.25%perannumonanyunpaid
balance,asrecommendedbytheFinanceDirector.
A2.StaffWorkloadImpact:Therewillbesomestafftimeinvolvedinrecording
andcertifyingtheassessmentwithWrightCounty,whichwillbecoveredby
interestpayableontheassessment.
A3.LegalReview:TheCityAttorneyhasadvisedstaffthatrecentcourtdecisions
havenecessitatedtheuseofassessmentagreementsandcorresponding
resolutions.Waiversofassessmenthearingsand/orappealscannolongerbe
incorporatedintoadevelopercontractalone.Negotiatedassessmentsmustbe
formalizedbyseparateagreementandresolution.
B.ALTERNATIVEACTIONS:
1.ConsiderationofadoptingResolution#2014-068approvinganAssessment
AgreementforSRCSBuildingCompany (PID155-010-010060)andcertifying
thespecialassessmentsintheamountof$29,001.35for503MapleStreettothe
WrightCountyAuditorfortaxyearpayable2015.
2.MotiontonotadoptResolution#2014-068atthistime.
CityCouncilAgenda:07/14/14
2
C.STAFFRECOMMENDATION:
StaffsupportsAlternative#1,whichisconsistentwithformerassessmentagreementsand
willreimbursetheCityforprojectcostsassociatedwiththeseimprovementsforSwan
RiverMontessoriSchoolasagreedbySRCSBuildingCompany.
D.SUPPORTINGDATA:
Resolution#2014-068
CopyofAssessmentAgreement
CITYOFMONTICELLO
WRIGHTCOUNTY,MINNESOTA
RESOLUTIONNO.2014-068
APPROVINGASSESSMENTAGREEMENT&WAIVEROFHEARINGAND
ADOPTINGSPECIALASSESSMENTSFORSRCSBUILDINGCOMPANY,o/b/o
SWANRIVERMONTESSORISCHOOLAT503MAPLESTREET
PID155-010-010060
WHEREAS,theCityhasreceivedandapprovedanapplicationforfinalstageplannedunit
development(PUD)andrezoningofPUDforSRCSBuildingCompany,forlandlegally
describedas:
Lots6and7,Block10,OriginalPlatofMonticello,WrightCounty,Minnesota;and
WHEREAS,pursuanttoauthoritygranteditbyMinnesotaStatutes462.358,Subd.2a.(2013),
theCityhasconditioneditsapprovalsofthedevelopmentapplications,forthesubjectproperty
ontheconstructionofimprovementstosaidproperty,andtheDeveloperContract,topayfor
certaincostsrelatedtotheimprovements,and;
WHEREAS,theCityhasreceivedanAssessmentAgreement(acopyofwhichisattachedhereto
asExhibit“A”)fromtheDeveloperforpaymentoftheseimprovements.
NOW,THEREFORE,BEITRESOLVED bytheCityCounciloftheCityofMonticello:
1.TheAssessmentAgreementisherebyapproved,contingentuponsignatureofan
authorizedrepresentativeofthepropertyowner,SRCSBuildingCompany.TheMayor
andCityAdministratorareauthorizedanddirectedtosigntheAgreement.
2.Suchproposedassessments,asamended,areherebyacceptedandshallconstitutethe
specialassessmentagainstthelandsnamedthereinandeachtractoflandthereinincluded
isherebyfoundtobebenefitedbytheproposedimprovementsintheamountofthe
assessmentleviedagainstit.Thepropertyownerherebywaivesanyrightstohearing
requirementsandfurtherwaivesanyrightstoappealpursuanttoMNStatutes429.081.
3.Thecostoftheimprovementsassessedbythisresolutiontothepropertyasidentifiedin
theattachedAssessmentAgreementis$29,001.35.Termsoftheassessmentshallbeas
providedintheAssessmentAgreement.
4.Thepropertyownermay,within30daysoftheexecutionofthisagreement,paythe
wholeoftheassessmentonsuchpropertytotheCity,exceptthatnointerestshallbe
chargediftheentireassessmentispaidpriortocertificationoftheassessment.The
ownermayatanytimethereafterpaytheCitytheentireamountoftheassessment
remainingunpaidwithinterestaccruedtoDecember31oftheyearinwhichthepayment
ismade.SuchpaymentmustbemadebeforeNovember30orinterestwillbecharged
throughDecember31,ofthenextsucceedingyear.
5.TheClerkshallcertifythisassessmenttotheCountytobeextendedonthepropertax
listsoftheCountyandsuchassessmentsshallbecollectedandpaidoverinthesame
mannerasothermunicipaltaxes.
BEITFURTHERRESOLVED:thattheCityClerkshallrecordsaidAgreementwiththe
CountyRecorderandCountyAuditorOffices.
ADOPTEDBY theCityCounciloftheCityofMonticelloonthis14th dayofJuly,2014.
CITYOFMONTICELLO
_______________________________
ClintHerbst,Mayor
ATTEST:
______________________________
JeffO’Neill,CityAdministrator
EXHIBIT“A”
AssessmentAgreement
CERTIFICATION
STATEOFMINNESOTA
COUNTYOFWRIGHT
IherebycertifythattheforegoingisatrueandcorrectcopyofResolution#2014-068
dulypassed,adoptedandapprovedbytheMonticelloCityCouncilattheirscheduledmeetingon
July14,2014,andrecordedinminutesofsaidmeeting.
____________________________________
CatherineM.Shuman,DeputyCityClerk
NotaryPublic:_______________________________
Date:___________________________
(STAMP)
(reservedforrecordingpurposes)
PropertyOwner(s):SRCSBUILDINGCOMPANY
PropertyAddress:503MapleStreet,Monticello,MN55362
LegalDescription:Lots6and7,Block10,OriginalPlatofMonticello
PID:155010010060
ASSESSMENTAGREEMENT
RepresentingSRCSBuildingCompany,IherebyagreetoallowtheCityofMonticellotoassess
forSewerAccessCharges,WaterAccessChargesandEngineeringandPlanningServicesover
escrowaslistedbelow.
ThenewsiteDevelopmentPropertytotals.49grossacres.ApplicableSewerAccessCharges,
WaterAccess,andEngineeringandPlanningServicesoverescrowareasfollows:
SewerAccessCharges(SAC):$22,930.70 (5.69SACUnitsx$4,030,2014SACfee)
WaterAccessCharges(WAC):$801 (1”line+materials)
Engineering/PlanningFeesoverEscrow:$5,269.65
ThesechargesTOTALTHEAMOUNTOF$29,001.35.
Thisamountshallbeassessedagainstthedevelopmentpropertyasfollows:
A.TheDevelopmentpropertywillbeassessed$29,001.35pursuanttoMinn.
Stat.§429.011,etseq.
B.Theassessmentamountwillbepayableovertenyears,includinginterestat
therateof5.25%(percent)perannumcomputedontheunpaidbalance.
C.Theassessmentisdeemedadoptedonthedatethiscontractissignedbythe
parties.Theassessmentamountwillstarttoaccrueinterestasofthedateofthisagreement,with
thefirstinstallmentpayableaspartofthecollectible2015taxes.
D.Developerherebywaivesunconditionallyallproceduralandsubstantive
objectionstotheassessmentincluding,butnotlimitedto,anyrightstohearingrequirementsand
anyclaimthattheassessmentconstitutesaspecialbenefitorthattheamountoftheassessment
exceedsthespecialbenefittotheDevelopmentproperty.TheDeveloperfurtherwaivesanyappeal
rightsotherwiseavailablepursuanttoMinnesotaStatutes§429.081orotherlaws.
E.SRCSBuildingCompany herebywaivespublichearingnoticerequirements
associatedwithspecialassessmentforSewerAccessCharges,WaterAccessChargesand
EngineerandPlanningServicesoverescrowasdescribedabove.
F.ThisAgreementshallberecordedagainstthetitletothesubjectpropertyand
shallbebindinguponOwner,its/theirassigns,heirsandsuccessorsininterest.
SRCSBUILDINGCOMPANY:
_______________________________________
JackZimney
Its:President
STATEOFMINNESOTA)
(ss.
COUNTYOF________)
Theforegoinginstrumentwasacknowledgedbeforemethis________dayof______________,
2014,by_________________,Ownerof_____________________,onitsbehalf.
______________________________________
NOTARYPUBLIC
STAMP
CITYOFMONTICELLO
BY:
______________________________________
ClintHerbst,Mayor
(CITYSEAL)
AND
______________________________________
JeffO’Neill,CityAdministrator
STATEOFMINNESOTA)
(ss.
COUNTYOFWRIGHT)
Theforegoinginstrumentwasacknowledgedbeforemethis________dayof______________,
2014,byClintHerbstandbyJeffO’Neill,respectivelytheMayorandCityAdministratoroftheCityof
Monticello,aMinnesotamunicipalcorporation,onbehalfofthecorporationandpursuanttotheauthority
grantedbyitsCityCouncil.
____________________________________________
NOTARYPUBLIC
STAMP
DRAFTEDBY:
CityofMonticello
AMS
505WalnutStreet,Suite1
MonticelloMN55362
RETURNTO:
CityofMonticello
AttnDeputyClerk
505WalnutStreet,Suite1
MonticelloMN55362
CityCouncilAgenda:07/14/14
1
5D.Considerationofappointingadditionalelectionjudgestoserveforthe2014elections
(CS)
A.REFERENCEANDBACKGROUND:
MinnesotaStatutesChapter204B.21requirescitiestoappointelectionjudgestoserveat
primaryandgeneralelectionsandontheAbsenteeBallotBoard.Agroupof40judges
wereapprovedbyCouncilonJune23,2014.Attachedisalistofseveralmorejudgesto
beappointedforthe2014elections.
A1.BudgetImpact:Electionjudgecompensationisincludedinthe2014budget.
A2.StaffWorkloadImpact:NA
B.ALTERNATIVEACTIONS:
1.Motiontoappointadditional2014electionjudgesaslisted.
2.Motionofother.
C.STAFFRECOMMENDATION:
CitystaffrecommendsAlternative#1.Inordertoconductelectionsinthemanner
prescribedbylaw,itisrecommendedtohaveanamplesupplyofelectionjudgesandthe
availabilityofcitystafftoassistasneeded.Councilsupportofthisdecisionwillhelp
ensureanefficientandeffectiveelectionprocess.
D.SUPPORTINGDATA:
ElectionJudgeproposedadditionalappointments
ELECTION JUDGES - 2014 mailed app letters 5/28/14
name address1 address2 city,st,zip
Bourque, Richard 9800 Hart Blvd Monticello MN 55362
Buchmann, Linda 9734 River Forest Dr Monticello MN 55362
Byholm, Rodney 6122 Bakken Street Monticello MN 55362
Ludwig, Charlotte 4748 Eagle Ridge Ln Monticello MN 55362
Peters, Rose 503 W 6th Street Monticello MN 55362
Stickfort, Marilyn 1213 Sandy Lane Monticello MN 55362
Suchy, Sandy 890 Briar Court Monticello MN 55362
Theisen, Carrie 134 Jerry Liefert Dr Monticello MN 55362
(as of 7/14/14)
CityCouncilAgenda:07/14/14
1
5E.Considerationofapprovingalicenseforon-saleintoxicatingliquorandSunday
liquorfortheMonticelloVFWat713CedarStreet.Applicant:USSDorchester
VFWPost8731 (CS)
A.REFERENCEANDBACKGROUND:
TheMonticelloVFWcurrentlyholdsaclubliquorlicensewithSundayliquorand
recentlysubmittedanapplicationtoupgradetoafullon-saleliquorlicensewithSunday
liquor.Theclublicenseislesscostlybuthaslimitstotheactivitiespermittedunderthat
typeoflicense.
ClublicensesareactuallyissuedbytheStateafterapprovalbythelocalgovernment.
UnderMinnesotastatutes,certainrulesapplytoclublicenses.Informationrelatedto
staterequirementsforclubliquorlicensesisincludedinthesupportingdata.Duetothe
limitationsundertheserules,citystaffhasencouragedthelocalclubstoconsidermoving
toafullon-saleliquorlicensetogivethemmoreflexibilityandlessentheirliabilityrisks.
MonticelloVFWdesirestoopentheirbusinesstothegeneralpublicinadditionto
membersandtheirguests;andtoallowalcoholtobeservedduringallevents,including
thoseheldoutsideofthebuildingsuchashorseshoetournaments.
Theannualfeefortheon-saleliquorlicenseissetat$3,750andtheSundaylicenseat
$200.ThesefeeswillbeappliedfromJuly1,2014throughJune30,2015,andthefees
thathavebeenpaidtowardtheclublicensewillbecreditedagainstthetotaldue,oncethe
newlicenseisapproved.
AbackgroundcheckwascompletedduringtherenewalprocessandtheWrightCounty
Sheriffsignedoffontherenewalform.Sincethebackgroundcheckfollowsthesame
procedureregardlessoflicensetype,thisstepdoesnotneedtoberepeatedatthistime.
Thenecessaryinsurancecertificatecoveringliquorliabilityandworker’scompensation
asrequiredbystatelawisintheprocessofbeingacquired.Theinsurancecertificatewill
beexpandedtoincludethebuilding,theparkinglot,thenewpatiotheyareputtingin,
andthehorseshoepitarea.Withtheexpandedon-salelicense,theyarepermittedto
servealcoholinareasoutsideandadjacenttothebuilding.
AfterapprovalbyCouncil,theappropriatedocumentationwillbesenttotheStatefor
processingandthenewlicensewillbeissued.
B.ALTERNATIVEACTIONS:
1.Motiontoapprovetheapplicationforanon-saleliquorlicenseandSundayliquor
licenseforUSSDorchesterVFWPost8731at713CedarStreet,contingentonthe
following:
a)Signedapplicationisreceived;
b)Revisedcertificateofinsuranceisreceived.
2.Motiontodenytheliquorlicenseapplicationatthistime.
CityCouncilAgenda:07/14/14
2
C.STAFFRECOMMENDATION:
CityStaffrecommendsAlternative#1forapprovalofanon-saleliquorlicenseand
SundayliquorlicensefortheMonticelloVFW.
D.SUPPORTINGDATA:
A.CopyofOn-SaleLiquorLicenseApplication
B.CopyofupdatedCertificateofInsurance
C.CopyofMNDepartmentofHealthFoodLicense(requiredforon-salelicense)
D.Informationshowingstaterequirementsforclubliquorlicensing
CityCouncilAgenda:07/14/14
1
5F.ConsiderationofadoptingResolution#2014-069callingforapublichearing
regardingtheissuanceofarevenueobligationforthebenefitoftheMonticello
YouthHockeyProgram,Inc.andprovidingpreliminaryapprovaloftheissuance
(WO)
A.REFERENCEANDBACKGROUND:
WhatisConduitFinancing?
Conduitfinancingisafinancingmechanismforprivatecompanies,non-profits,and
publicauthoritiesthatfundprojectsthroughtheissuanceoftax-exemptmunicipal
bonds.Theseareessentiallyrevenuebondsandarealsoknownasconduit,private
activity,orpass-throughbonds.Conduitfinancingsupportsprojectsasvariedas
hospitals,universities,publicworks,housingandindustrialdevelopment.Inthiscase,
usingthecityasconduit,thenon-profitMonticelloYouthHockeyProgram,Inc.is
refinancingthedebtincurredbyahockeyarenacapitalproject.
IssuerandBorrower
Conduitbondsareissuedbyagovernmentalentity,whichisknownastheconduit
issuer.Thetaxes,feesorrevenuesthatsecurethebondsarecollectedbytheconduit
issuerfromtheborrowerandthenpaidtothebondholders.However,theconduitissuer
isgenerallynotresponsibleforrepayment.Withconduitfinancing,theborrowing
organizationisobligatedtorepayinterestandprincipalonthebonds,unlessotherwise
agreedtobytheparties.So,ifalocalnon-profithospitalwantstobuildanewsurgery
centerandusesconduitfinancingtofundtheproject,itisthenon-profithospital,not
theconduitissuer,thatisresponsiblefordebtrepayment.
A1.BudgetImpact:Allcostsexcludingclericalstaffdutiesarecoveredbythe
borrower.
A2.StaffWorkloadImpact:Requiresstafftocoordinateandrecordcouncil
action.
A3.LegalReview:KennedyandGravenareprocessingtherefinancing.
B.ALTERNATIVEACTIONS:
1.MotiontoadoptResolution#2014-069callingforapublichearingonAugust,
11,2014at7p.m.regardingtheissuanceofarevenueobligationforthebenefit
oftheMonticelloYouthHockeyProgram,Inc.andprovidingpreliminary
approvaltotheissuance;anddirectstafftopublishnoticeaccordingly.
2.MotiontodenyResolution#2014-069callingforapublichearing.
CityCouncilAgenda:07/14/14
2
C.STAFFRECOMMENDATION:
CityStaffrecommendsAlternative#1.
D.SUPPORTINGDATA:
A.Resolution#2014-069
B.KennedyandGravenLetter
C.DistributionList
D.FinancingSchedule
E.TranscriptIndex
446228v2JAEMN190-144
CITYOFMONTICELLO
WRIGHTCOUNTY,MINNESOTA
RESOLUTIONNO.2014-069
CALLINGAPUBLICHEARINGREGARDINGTHEISSUANCEOFA
REVENUEOBLIGATIONFORTHEBENEFITOFTHEMONTICELLO
YOUTHHOCKEYPROGRAM,INC.ANDPROVIDINGPRELIMINARY
APPROVALTOTHEISSUANCETHEREOF
BEITRESOLVED bytheCityCounciloftheCityofMonticello,Minnesota(the“City”),as
follows:
Section1.Recitals.
1.01.PursuanttoMinnesotaStatutes,Sections469.152through469.1655,asamended(the
“Act”),theCityisauthorizedtoissuerevenueobligationstofinanceorrefinance,inwholeorinpart,the
costoftheacquisition,construction,reconstruction,improvement,betterment,orextensionofa“project,”
definedintheAct,inpart,asanyproperties,realorpersonal,usedorusefulinconnectionwitharevenue
producingenterprise,oranycombinationoftwoormoresuchenterprisesengagedinanybusiness.
1.02.TheMonticelloYouthHockeyProgram,Inc.,aMinnesotanonprofitcorporation(the
“Borrower”),hasacquired,constructed,andequippeda425-seaticearenaopentothepublic(the“Project”)
andlocatedat302WashingtonStreetintheCityonlandleasedfromIndependentSchoolDistrictNo.882
(MonticelloPublicSchools)(the“SchoolDistrict”)pursuanttoaGroundLease,datedJanuary20,2004,
asamendedonSeptember8,2004,andJune7,2005,fromtheSchoolDistricttotheBorrower.The
constructionandequippingoftheProjectwasfinancedthroughshort-termconstructionfinancing.On
February17,2006,theCityissueditsRevenueNote(IceArenaProject),Series2006A(the“PriorNote”),
intheoriginalaggregateprincipalamountof$1,380,000.ProceedsofthePriorNote,alongwiththe
proceedsoftheRevenueNote(IceArenaProject),Series2006B,issuedbytheCityintheoriginalaggregate
principalamountof$490,000andnolongeroutstanding,wereloanedtotheBorrowerforthepurposesof
providingpermanentfinancingfortheProject.
1.03.TheBorrowerhasrequestedthattheCityissueitsrevenueobligation,inoneormoreseries
(the“Note”),inanaggregateprincipalamountnottoexceed$1,111,000.TheproceedsoftheNotewillbe
appliedtorefinancetheProjectthroughtheredemptionandprepaymentoftheoutstandingPriorNote.
1.04.TheBorrowerhasrequestedthattheCityCouncilconductapublichearingonMonday,
August11,2014,toprovideapprovaloftheissuanceoftheNotepursuanttotherequirementsoftheAct
andSection147(f)oftheInternalRevenueCodeof1986,asamended(the“Code”),andtheregulations
promulgatedthereunder.
Section2.PreliminaryFindings.BasedonrepresentationsmadebytheBorrowertotheCity
todate,theCityCounciloftheCityherebymakesthefollowingpreliminaryfindings,determinations,and
declarations:
(a)TheproceedsoftheNotewillbeloanedtotheBorrowerandwillbeappliedto
refinancetheProject.TheCitywillenterintoaloanagreement(orotherrevenueagreement)with
theBorrowerrequiringloanrepaymentsfromtheBorrowerinamountssufficienttorepaytheloan
oftheproceedsoftheNotewhendueandrequiringtheBorrowertopayallcostsofmaintaining
andinsuringtheProject,includingtaxesthereon.
446228v2JAEMN190-144
(b)TheNotewillbealimitedobligationoftheCitypayablesolelyfromtherevenues
pledgedtothepaymentthereof,andwillnotbeageneralormoralobligationoftheCityandwill
notbesecuredbyorpayablefromrevenuesderivedfromanyexerciseofthetaxingpowersofthe
City.
Section3.PublicHearing.
3.01.TheCityCouncilshallmeetat7:00p.m.onMonday,August11,2014,toconductapublic
hearingasrequestedbytheBorrower,noticeofwhichhearing(the“PublicNotice”)willbepublishedas
requiredbytheActandSection147(f)oftheCode.
3.02.TheCityClerkisherebyauthorizedanddirectedtopublishthePublicNotice,in
substantiallytheformattachedheretoasEXHIBITA,inthe MonticelloTimes,theofficialnewspaperof
theCityandanewspaperofgeneralcirculationintheCity.ThePublicNoticeshallbepublishedatleast
once,atleastfifteen(14)dayspriortothedateofthepublichearing.Atthepublichearing,reasonable
opportunitywillbeprovidedforinterestedindividualstoexpresstheirviews,bothorallyandinwriting,on
theproposedissuanceoftheNote.
Section4.PreliminaryApproval.TheCityCouncilherebystatesitspreliminaryintentionto
issuetheNoteinthemaximumaggregateprincipalamountof$1,111,000torefinancetheProject.
Section5.Costs.TheBorrowerwillpaytheadministrativefeesoftheCityandpay,or,upon
demand,reimbursetheCityforpaymentof,anyandallcostsincurredbytheCityinconnectionwith
financingtheProjectandissuingtheNote,whetherornottheNoteisissued.
Section6.CommitmentConditional.Theadoptionofthisresolutiondoesnotconstitutea
guarantyorfirmcommitmentthattheCitywillissuetheNoteasrequestedbytheBorrower.TheCity
retainstherightinitssolediscretiontowithdrawfromparticipationandaccordinglynottoissuetheNote,
orissuetheNoteinanamountlessthantheamountreferredtoherein,shouldtheCityatanytimepriorto
issuancethereofdeterminethatitisinthebestinterestoftheCitynottoissuetheNote,ortoissuetheNote
inanamountlessthantheamountreferredtoinSection1.03hereof,orshouldthepartiestothetransaction
beunabletoreachagreementastothetermsandconditionsofanyofthedocumentsrequiredforthe
transaction.
Section7.EffectiveDate.Thisresolutionshallbeinfullforceandeffectfromandafterits
passage.
ADOPTEDBY theCityCounciloftheCityofMonticello,Minnesota,this14th dayofJuly,2014.
CITYOFMONTICELLO
______________________________
ClintHerbst,Mayor
ATTEST:
________________________________
JeffO’Neill,CityAdministrator
446228v2JAEMN190-144
EXHIBIT“A”
CITYOFMONTICELLO,MINNESOTA
NOTICEOFPUBLICHEARINGONTHEISSUANCEOFA
REVENUEOBLIGATIONBYTHECITYOFMONTICELLOFOR
THEBENEFITOFTHEMONTICELLOYOUTHHOCKEY
PROGRAM,INC.
NOTICEISHEREBYGIVENthattheCityCouncil(the“Council”)oftheCityofMonticello,
Minnesota(the“City”)willmeetintheMississippiRoomattheCommunityCenter,505WalnutAvenuein
theCity,atorafter7:00p.m.onMonday,August11,2014,toconsidertheissuancebytheCityofitsrevenue
obligation,inoneormoreseries(the“Note”),underMinnesotaStatutes,Sections469.152through469.1655,
asamended(the“Act”),inanaggregateprincipalamountnottoexceed$1,111,000.Theproceedsofthe
NotearetobeappliedtotheredemptionandprepaymentoftheoutstandingRevenueNote(IceArena
Project),Series2006A(the“PriorNote”),issuedbytheCityonFebruary17,2006,intheoriginalaggregate
principalamountof$1,380,000,forthebenefitoftheMonticelloYouthHockeyProgram,Inc.,aMinnesota
nonprofitcorporation(the“Borrower”).TheBorrowerusedtheproceedsofthePriorNotetoprovide
permanentfinancingfortheacquisition,construction,andequippingofa425-seaticearenawithlockerroom
facilitieswhichisopentothepublic(the“Project”)andlocatedat302WashingtonStreetintheCityonland
leasedfromIndependentSchoolDistrictNo.882(the“SchoolDistrict”).TheProjectisownedbythe
BorrowerandismanagedbytheSchoolDistrict.
Followingthepublichearing,theCouncilwillconsideradoptionofaresolutiongrantingapproval
totheissuance,sale,anddeliveryoftheNotebytheCityforthepurposessetforthabove.TheNotewill
beissuedbytheCityandwillbealimitedobligationoftheCitypayablesolelyfromtherevenuespledged
tothepaymentthereof.TheNotewillnotbeageneralormoralobligationoftheCityandwillnotbe
securedbyorpayablefromanyassets,revenues,orotherpropertyoftheCity(excepttheinterestsofthe
CityintherevenuesderivedfromtheloanagreementbetweentheCityandtheBorrower)andwillnotbe
securedbyorpayablefromanyrevenuesderivedfromanyapplicationofthetaxingpowersoftheCity.
Anyonedesiringtobeheardduringthispublichearingwillbeaffordedanopportunitytodoso.
BYORDEROFTHECITYCOUNCILOFTHE
CITYOFMONTICELLO,MINNESOTA
/s/JeffO’Neill
CityAdministrator
CityofMonticello,Minnesota
PUBLISH:MonticelloTimesonThursday,July24,2014
POST:Thursday,July24,2014
446694v1JAEMN190-144
Officesin
Minneapolis
SaintPaul
St.Cloud
470U.S.BankPlaza
200SouthSixthStreet
Minneapolis,MN55402
(612)337-9300telephone
(612)337-9310fax
www.kennedy-graven.com
AffirmativeAction,EqualOpportunityEmployer
JULIE A.EDDINGTON
AttorneyatLaw
DirectDial(612)337-9213
Email:jeddington@kennedy-graven.com
July8,2014
WayneOberg
FinanceDirector
CityofMonticello
505WalnutAvenue,Suite1
Monticello,MN55362
Re:ResolutionprovidingpreliminaryapprovalandcallingapublichearingwithrespecttotheRevenue
RefundingNote(IceArenaProject),Series2014,proposedtobeissuedbytheCityofMonticello,
Minnesota
DearWayne,
TheMonticelloYouthHockeyProgram,Inc.,aMinnesotanonprofitcorporation(the“Borrower”),has
requestedthattheCityofMonticello(the“City”)issueitsRevenueRefundingNote(IceArenaProject),
Series2014(the“Series2014Note”),inaprincipalamountnottoexceed$1,111,000,pursuanttoMinnesota
Statutes,Sections469.152through469.1655,asamended(the“Act”).TheCityCouncilisbeingaskedto
adopttheattachedresolutiononMonday,July14,2014,whichprovidespreliminaryapprovaltotheissuance
oftheNoteandcallsforapublichearingtobeconductedonMonday,August11,2014.
TheBorrowerhasproposedtousetheproceedsoftheSeries2014Notetorefinancetheacquisition,
construction,andequippingofa425-seaticearenaopentothepublic(the“Project”)andlocatedat302
WashingtonStreetintheCityonlandleasedfromIndependentSchoolDistrictNo.882(MonticelloPublic
Schools)(the“SchoolDistrict”)pursuanttoaGroundLease,datedJanuary20,2004,asamendedon
September8,2004,andJune7,2005,fromtheSchoolDistricttotheBorrower.Theconstructionand
equippingoftheProjectwasfinancedthroughshort-termconstructionfinancing.OnFebruary17,2006,the
CityissueditsRevenueNote(IceArenaProject),Series2006A(the“PriorNote”),intheoriginalaggregate
principalamountof$1,380,000.ProceedsofthePriorNote,alongwiththeproceedsoftheRevenueNote
(IceArenaProject),Series2006B,issuedbytheCityintheoriginalaggregateprincipalamountof$490,000
andnolongeroutstanding,wereloanedtotheBorrowerforthepurposesofprovidingpermanentfinancing
fortheProject.
InordertosatisfythepublicnoticerequirementsoftheActandSection147(f)oftheInternalRevenueCode
of1986,asamended(the“Code”),theBorrowerhasrequestedthattheCityCounciloftheCityholdapublic
hearingonAugust11,2014.Attheproposedpublichearing,theCityCouncilwillbeaskedtoprovide
approvaltotheissuanceoftheSeries2014Noteandtheexecutionofloandocumentsandrelateddocuments.
TheSeries2014Noteisproposedtobeissuedasatax-exemptobligation,theinterestonwhichisnot
includableingrossincomeforfederalincometaxpurposes.FirstMinnesotaBank(the“Lender”)hasagreed
446694v1JAEMN190-144 2
topurchasetheSeries2014NotefromtheCity.IftheSeries2014NoteisauthorizedtobeissuedbytheCity
Council,itwillbeissuedasaconduitrevenuebondsecuredsolelybytherevenuesderivedfromaloan
agreement(the“LoanAgreement”)tobeexecutedbytheBorrowerandfromothersecurityprovidedbythe
Borrower.TheSeries2014NotewillnotconstituteageneralormoralobligationoftheCityandwillnotbe
securedbyorpayablefromanypropertyorassetsoftheCity(otherthantheinterestsoftheCityintheLoan
Agreement)andwillnotbesecuredbyanytaxingpoweroftheCity.TheSeries2014Notewillnotbe
subjecttoanydebtlimitationimposedontheCity,andtheissuanceoftheSeries2014Notewillnothaveany
adverseimpactonthecreditratingoftheCity,evenintheeventthattheBorrowerencountersfinancial
difficultieswithrespecttotheProjecttoberefinancedwiththeproceedsoftheSeries2014Note.
TheSeries2014NoteisproposedtobeprivatelyplacedwiththeLender.TheBorrowerhasrequestedthat
theCitydesignatetheSeries2014Noteasa“qualifiedtax-exemptobligation”forpurposesof
Section265(b)(3)oftheCode.Tax-exemptobligationsareusuallynoteligibleforpurchasebybanksand
otherfinancialinstitutions,butSection265(b)(3)oftheCodepermitseachissueroftax-exemptobligationsto
designateupto$10,000,000oftax-exemptbondsas“qualifiedtax-exemptobligations”(sometimesreferred
toas“bank-qualifiedbonds”)thatareeligibleforpurchasebybanksandotherfinancialinstitutions.Inorder
toissuebank-qualifiedbonds,theissuermustnotexpecttoissuemorethan$10,000,000ofbonds(otherthan
privateactivitybondsthatarenotqualified501(c)(3)bonds)inacalendaryear.
UnderthetermsoftheLoanAgreement,theBorrowerwillagreetopaytheout-of-pocketexpensesofthe
Citywithrespecttothistransaction.
PleasecontactmewithanyquestionsyoumayhavepriortotheCityCouncilmeeting.
Sincerely,
JulieA.Eddington
446225v2JAEMN190-144
DISTRIBUTIONLIST
CityofMonticello,Minnesota
RevenueRefundingNote
(IceArenaProject)
Series2014
Issuer
WayneOberg,FinanceDirector
CityofMonticello
505WalnutAvenue,Suite1
Monticello,MN55362
Tel:763-271-3211
Fax:763-295-4404
E-mail:wayne.oberg@ci.monticello.mn.us
BondCounsel
JulieEddington
Kennedy&Graven,Chartered
470U.S.BankPlaza
200SouthSixthStreet
Minneapolis,MN55402
Tel:612-337-9213
Fax:612-337-9310
E-mail:jeddington@kennedy-graven.com
Borrower
TomFrederick
AdamDalum
MonticelloYouthHockeyProgram,Inc.
202RumRiverDriveSouth
Princeton,MN55371-1818
Cell:612-483-6145(Frederick)
612-202-5818(Dalum)
E-mail:tomf@firstmnbank.com
adam.dalum@crbard.com
Borrower'sCounsel
NateAllen
GriesLenhardtMichenfelderAllenPLLP
1272543rd StreetNE,Suite201
St.Michael,MN55376
Tel:763-497-3099
E-mail:nate@glmalaw.com
SchoolDistrict
JimJohnson,Superintendent
IndependentSchoolDistrictNo.882
302WashingtonStreet
Monticello,MN55362
Tel:763-271-0301
E-mail:jim.johnson@monticello.k12.mn.us
SchoolDistrictCounsel
JayT.Squires
Rupp,Anderson,Squires&Waldspurger,P.A.
527MarquetteAvenueSouth,Suite1200
Minneapolis,MN55402
Tel:612-436-4300
Fax:612-436-4340
E-mail:jay.squires@raswlaw.com
446225v2JAEMN190-144
Lender
ShaunCorbin
FirstMinnesotaBank
555Highway55East
P.O.Box515
Buffalo,MN55313
Tel:763-684-4570
E-mail:shaunc@firstmnbank.com
PriorLender
LeonardKirscht
FirstNationalBankofElkRiver
1121Highway10
Anoka,MN55303
Tel:763-712-2765
E-mail:lkirscht@fnber.com
TitleCompany
CityofMonticello
RevenueRefundingNote
(IceArenaProject)
Series2014
446227v1JAEMN190-144
CityofMonticello,Minnesota
RevenueRefundingNote
(IceArenaProject)
Series2014
TentativeFinancingSchedule
DueDate RequiredAction ResponsibleParty
WeekofJune30,
2014
Sendresolutioncallingpublichearingtoworkinggroup
forreview
K&G
WeekofJuly7,
2014
TaxduediligencequestionnairesenttoBorrowerK&G;Borrower
Monday,July14,
2014
CityCouncilconsidersresolutioncallingpublichearingCity
ByMonday,July21,
2014
Arrangepublicationofnoticeofpublichearingin
MonticelloTimes (officialnewspaperoftheCity)
K&G
Thursday,July24,
2014
Noticeofpublichearingpublishedin MonticelloTimes
(mustbepublishedatleast14dayspriortohearing)
K&G
WeekofJuly28,
2014
Sendloandocumentsandnoteresolutiontoworking
groupforreview
K&G
Monday,August4,
2014
SchoolDistrictconsidersresolutionapprovingrefunding
andexecutionofdocuments
SchoolDistrict
WeekofAugust4,
2014
SendclosingcertificatestoworkinggroupforreviewK&G
Monday,August11,
2014
Publichearingconducted;CityCouncilconsidersnote
resolutionprovidingapprovaltoissuenote
City
_________,2014BoardofDirectorsofBorrowerconsidersresolution
approvingrefundingandexecutionofdocuments
Borrower
Firstweekof
September2014
ClosingAll
CityCouncilmeetsJuly14,July28,August11,August25
SchoolDistrictmeetsJuly7,August4,August18
MonticelloTimes ispublishedweeklyonThursday;deadlineforsubmissionispriorMondayat5PM
Parties
CityCityofMonticello,Minnesota
BorrowerMonticelloYouthHockeyProgram,Inc.
SchoolDistrictISDNo.882(MonticelloPublicSchools)
LenderFirstMinnesotaBank
K&GKennedy&Graven,Chartered(BondCounsel)
446226v1JAEMN190-144
TRANSCRIPT INDEX
$_________
CityofMonticello,Minnesota
RevenueRefundingNote
(IceArenaProject)
Series2014
DateofPre-closing:September__,2014
DateofClosing:September___,2014
PlaceofClosing:OfficesofKennedy&Graven,Chartered
Minneapolis,Minnesota
PARTICIPANTS
Issuer...........................................................CityofMonticello,Minnesota
Borrower.....................................................MonticelloYouthHockeyProgram,Inc.
SchoolDistrict.............................................IndependentSchoolDistrictNo.882(Monticello)
PublicSchools
Lender.........................................................FirstMinnesotaBank
PriorLender.................................................FirstNationalBankofElkRiver
CounseltoBorrower....................................GriesLenhardtMichenfelderAllenPLLP
CounseltotheLender..................................__________________
CounseltotheSchoolDistrict......................Ratwik,Roszak&Maloney,P.A.
BondCounsel..............................................Kennedy&Graven,Chartered
TitleCompany.............................................__________________
BASICDOCUMENTS
1.SpecimenRevenueRefundingNote(IceArenaProject),Series2014
2.LoanAgreement,datedasofSeptember1,2014,betweentheIssuerandtheBorrower
3.AssignmentofLoanAgreement,datedasofSeptember1,2014,betweentheIssuer,the
Borrower,andtheLender
4.GroundLease,datedJanuary20,2004,fromtheSchoolDistricttoBorrower,asamended
January22,2004,September8,2004,andJune7,2005
5.FirstAmendmenttoGroundLeaseEstoppelCertificateandAgreement,datedasof
September1,2014,betweentheSchoolDistrict,theBorrower,andtheLender
6.AssignmentofMortgageandSecurityAgreement,datedasofSeptember1,2014,from
PriorLendertotheLenderandconsentedtobytheSchoolDistrictandtheIssuer
446226v1JAEMN190-144 2
7.RecreationAgreement,datedJuly1,2004,betweentheSchoolDistrict,theIssuer,and
theBorrower,asamendedJune7,2005,December1,2005,and___________,2014
8.AssignmentofRecreationAgreement,datedasofSeptember1,2014,betweenthe
BorrowerandtheLender,assuccessortothePriorLender,andconsentedtobythe
SchoolDistrictandtheIssuer
9.UCC-1FinancingStatementrelatingtoLoanAgreement(IssuerasDebtor;Lenderas
SecuredParty)
ISSUERDOCUMENTS
10.CertificateofIssuer,datedSeptember___,2014
EXHIBITAPreliminaryResolutionNo.___,adoptedbytheCityCouncilon
July14,2014
EXHIBITBAffidavitofPublicationofNoticeofPublicHearing
EXHIBITCNoteResolutionNo.___,adoptedbytheCityCouncilon
August11,2014
11.InformationReturnforTax-ExemptPrivateActivityBondIssues,Form8038(Rev.April
2011),datedSeptember___,2014
BORROWERDOCUMENTS
12.CertificateoftheBorrowerCertificate,datedSeptember___,2014
EXHIBITAAuthorizingResolutionoftheBoardofDirectors
EXHIBITBArticlesofIncorporation
EXHIBITCBylaws
EXHIBITDCertificateofGoodStanding
EXHIBITEIRSDeterminationLetter
13.TaxCertificateoftheBorrower,datedSeptember___,2014
EndorsementoftheIssuertotheTaxCertificateoftheBorrower,dated
September__,2014
SCHOOLDISTRICTDOCUMENT
14.CertificateofSchoolDistrict,datedSeptember___,2014
EXHIBITAResolutionoftheBoardoftheSchoolDistrictadoptedon
August18,2014
LENDERDOCUMENT
15.CertificateoftheLender,datedSeptember___,2014
OPINIONS
16.OpinionofBondCounsel,datedSeptember___,2014
17.OpinionofCounseltotheBorrower,datedSeptember___,2014
446226v1JAEMN190-144 3
MISCELLANEOUS
18.TitlePolicy
19.TitleSettlementStatement
20.UCC-3FinancingStatementAssignmentrelatingtoMortgage
21.UCC-3FinancingStatementTerminationrelatingto2006LoanAgreement
CityCouncilAgenda:07/14/14
1
5G.Considerationofauthorizingsecondarydigestercovercleaning,condition
inspection,andtime-sensitiverepairandprimarydigestermixerrepair (WSB)
A.REFERENCEANDBACKGROUND:
TheCityCouncilisaskedtoconsiderapprovingsecondarydigestercovercleaning,
conditioninspection,andtimesensitiverepairandprimarydigestermixerrepair.
SludgeHandlingandProcessing:
Wastesludgeisproducedinthesequencingbatchreactors(SBRs).Thewastesludgeis
thenthickenedinadissolvedairflotationthickenerafterwhichitispumpedtothe
primarydigester,first,followedbythesecondarydigester.Followingdigestion,the
sludgeisdewateredbythescrewpressandlandfilled.
PrimaryandSecondaryDigesters:
PurposeofDigesters
Thedigestersprovidetwofunctions:
Reduceorganicmatter(volatilesolids)inthesludge
Reducefecalcoliformorganisms
Bacteriainthedigestersconvertvolatilesolidstowater,carbondioxide,andmethane
gas.Thisreductionofvolatilesolidsisbeneficialforthefollowingreasons:
Dewateredsludgeislessputrescible
Reductioninthevolumeofsludgethathastobeprocessedandlandfilled
whichsavesoncost
Thesecondfunctionofthedigestersistoreducethefecalcoliformbacteria
concentrationtothelevelmandatedbytheMinnesotaPollutionControlAgencyfor
landfillingofsludge.
DigesterConstruction
Bothofthedigestersarecircularconcretetankswithfloatingsteelcovers—seeattached
sketch.Thefloatingcoversallowfortheaccumulationofdigestergaswhichismostly
methane.Thedigestergasisthenburnedinadualfuelboilertoheatthedigesters.The
digesterswereconstructedaspartofthe1982project.Thecoverforthesecondary
digesterwasreplacedin1993andthecoverfortheprimarydigesterwasreplacedin
1995.Therefore,thecovershavebeeninserviceforapproximately20years.
Bothofthedigestersareequippedwithdrafttubemixers.Themixersprovidetwo
benefits:
Acceleratethebiologicalprocessofbreakingdownthevolatilesolidsintowater,
carbondioxide,andmethanegas.
Createablendedsludgethatmakesiteasiertomaintainthecorrectpolymerfeed
tothescrewpress
CityCouncilAgenda:07/14/14
2
ExistingSituation
SecondaryDigesterCover
Therehasbeenafailureoftheceilingplates(pleaserefertotheattachedsketch)thathas
allowedanapproximate10-inchdepthofsludgetoaccumulateintheatticarea
betweentheceilingplatesandtheroofplates.Thesludgemustberemovedtoallow
thecovertofloatproperly.Theceilingplatesthenhavetobeinspectedtoidentifythe
failedareasthatneedtobepatched(pleaserefertotheattachedphotothatshowsthe
originalcoating(blackareas)andthefailedcoatingareaswhicharerustingandappear
red.Followingidentification,thefailedceilingplateareaswillthenbepatchedby
weldingnew¼-inchthicksteelplateoverthefailedareas.
Fromthephoto,itisclearthatthecoatingsystemhastotallyfailedallowingrustingof
theceilingplates.Anadditionalelementoftheprojectwillbetoconductultrasonic
thicknesstestingoftheceilingplatestodetermineremainingmetalthickness.Knowing
theremainingmetalthicknesswillallowaninformeddecisionwhethertheceilingplates
cansimplybesandblastedandre-coatedorwhethertheplateshavetobereplaced.
Thescopeofthesecondarydigestercoverprojectperthediscussionaboveincludes:
Removalofsludgefromtheatticarea
Identificationofthefailedareasoftheceilingplates
Patchingofthefailedareas
Ultrasonicthicknesstesting
PrimaryDigesterMixer
Asealhasfailedintheprimarydigestermixerresultingintheexcessivelossofgearoil.
Themixershouldberemovedandshippedbacktothemanufacturerforoverhaul.The
scopeofthedigestermixerprojectincludes:
Removalofthemixer
Mixeroverhaul
Re-installationofthemixer
Theproposalformixeroverhaulfromthemanufacturer(Ovivo)isattached.
MBIconstructedtheSludgeDewateringFacilityandiskeenlyinterestedinprovidingthe
constructionservicesrequiredforthesecondarydigestercoverdescribedabove,to
removetheprimarydigestermixer,andtore-installitafteroverhaulbyOvivo.Their
quotationtoprovidetheseservicesisattached.
ThecontractfortheSludgeDewateringFacilityisstillopenwhichwouldallowthe
secondarydigestercoverandprimarydigestermixerworktobeaddedtothatprojectby
changeorder.AddingthisworktotheexistingSludgeDewateringFacilitycontract
wouldexpeditegettingtheworkdone.Iftheprimarydigestermixershouldtotallyfail
beforethesecondarydigesterisbackinservice,itwouldbeverydifficulttodewater
sludge.
CityCouncilAgenda:07/14/14
3
A1.BudgetImpact:ThetotalestimatedmaximumcostofMBI’squotationis
$47,374.Ovivo’squotationforthemixeroverhaulis$17,897.Therefore,the
totalestimatedmaximumcostofthesecondarydigestercoverandprimary
digestermixerrepairworkis$65,271.Thisamountalsoincludestheestimated
costoftheultrasonicthicknesstesting.Thesecondarydigestercoverandprimary
digestermixerrepairwillbefundedbythebondsaleforthePhase1
Improvements.
A2.StaffWorkloadImpact:Therewillbeminimalstaffworkloadimpact.
B.ALTERNATIVEACTIONS:
1.MotiontoapproveaChangeOrdertoaddthesecondarydigestercoverand
primarydigestermixerrepairworktothecontractfortheWWTFSludge
DewateringFacility,CityProjectNo.12C003.
2.Motiontosolicitquotesfrommultiplecontractorsandenterintoanadditional
contractforthesecondarydigestercoverandprimarydigestermixerrepairwork.
C.STAFFRECOMMENDATION:
CitystaffrecommendsapprovingAlternative#1becauseitwouldallowfortheworkto
becompletedasquicklyaspossible.
D.SUPPORTINGDATA:
A.Sketchofdigestercover
B.Photoofdigesterceilingplates
C.Ovivomixeroverhaulquotation
D.MBIquotation
Proposal No. 06162014-KH
Proposal Date: June 16, 2014
Page 1 of 9
P R O P O S A L
Ovivo USA, LLC
4246 Riverboat Road • Suite 300 • Salt Lake City, Utah 84123 USA
Tel: (801) 931-3000 • Fax: (801) 931-3080
www.ovivowater.com
PREPARED FOR
Monticello WWTP
Monticello, MN
Attn: Chuck Keyes
AREA REPRESENTATIVE
Great Northern Environmental
Matt Fritze
(651) 289-9100
mfritze@gnenv.com
PROJECT
EDT(10 HP) Sludge Mixer Rebuild
Serial #25342-01
PREPARED BY
Ovivo USA, LLC
4246 Riverboat Road – Suite 300
Salt Lake City, Utah 84123
Karen Haddow
Phone (801) 931-3027
Fax (801) 931-3090
karen.haddow@ovivowater.com
Proposal No. 06162014-KH
Proposal Date: June 16, 2014
Page 1 of 9
Proposal No. 06162014-KH
Proposal Date: June 16, 2014
Page 2 of 9
P R O P O S A L
Ovivo USA, LLC
4246 Riverboat Road • Suite 300 • Salt Lake City, Utah 84123 USA
Tel: (801) 931-3000 • Fax: (801) 931-3080
www.ovivowater.com
PROJECT SUMMARY:
Ovivo USA, LLC (formerly EIMCO Water Technologies – EWT™) is pleased to offer the following proposal to
provide materials & labor for standard rebuild of one (1) existing EWT™ EDT 10 HP sludge mixer, serial #
25342-01, installed in 1996. Rebuild to take place at our authorized rebuild center in Salt Lake City, UT.
Disassembly and Inspection
Includes:
Complete disassembly of mixer into individual parts and components followed by a thorough
assessment of components with intention to identify the cause of failure.
Evaluation Report to illustrate condition of all parts and components and scope of the rebuild.
Customer to be provided with the evaluation report.
Standard rebuild of EDT Sludge Mixer Includes:
Replacement of upper and lower bearings and retainers
o Includes: bearings, hardened wear sleeve, seal seat, seal rotor, seal cartridge, locking
rings, bushing, O-rings, split collar, sealants and assembly hardware
Assemble, paint and inspect rebuilt mixer
Warranty parts and workmanship for (1) year
Engineering
Mixer freight to/from Monticello WWTP & Ovivo rebuild center (Salt Lake City, UT)
Does NOT include:
Major component replacement such as: motors, housings, shafts, base plates, brackets,
sheaves, belt guards, draft tubes, draft tube mating gasket, propeller, centering assembly, wear
pads etc.
Lubricants – grease or oil
O & M manual
Mixer removal or installation services
Loading or unloading of mixer
Electrical installation or alteration of existing electrical supply
Finish or touch up painting
Overtime work hours or removal of old debris
Field service startup/checkout services (see optional adder below)
Rebuild pricing for one (1) EDT sludge mixer as described above ...…………….……….…………..…… $ 17,897.00
Proposal No. 06162014-KH
Proposal Date: June 16, 2014
Page 3 of 9
P R O P O S A L
Ovivo USA, LLC
4246 Riverboat Road • Suite 300 • Salt Lake City, Utah 84123 USA
Tel: (801) 931-3000 • Fax: (801) 931-3080
www.ovivowater.com
Note: Price is based on a typical (standard) rebuild and does not include the replacement of major
components. If any of these items are in need of replacement it will be at additional cost to the order.
Mixer must be pressure washed and oil drained prior to pick up.
Optional ADDER
Please ADD the following price to include one Ovivo serviceman visit for one (1) trip of one (1) day on site to
perform checkout (start-up) and inspection of rebuilt EDJ sludge mixer. Price includes all travel and
miscellaneous expenses.
Pricing for field service checkout complete as described above ………………….….………………………… $ 4,655.00
DELIVERY
Ovivo intends to ship all Products as indicated above after receipt of approved purchase order and
approved submittal drawings from Purchaser. However, the date of shipment of the Products
represent Ovivo's best estimate, but is not guaranteed, and Ovivo shall not be liable for any
damages due to late delivery. The Products shall be delivered to the delivery point or points in
accordance with the delivery terms stated in this proposal. If such delivery is prevented or
postponed by reason of Force Majeure, as defined in Ovivo’s standard terms and conditions of
sale, Ovivo shall be entitled at its option to tender delivery to Purchaser at the point or points of
manufacture, and in default of Purchaser’s acceptance of delivery, to cause the Products to be
stored at such a point or points of manufacture at Purchaser's expense. Such tender, if accepted,
or such storage, shall constitute delivery for all purposes of this proposal. If shipment is
postponed at request of Purchaser, or due to delay in receipt of shipping instructions, payment
of the purchase price shall be due on notice from Ovivo that the Products are ready for
shipment. Handling, moving, storage, insurance and other charges thereafter incurred by Ovivo
with respect to the Products shall be for the account of Purchaser and shall be paid by Purchaser
when invoiced.
PRICING TERMS
All prices quoted are in US Dollars. Prices are good for 45 days. After expiration of the pricing
effective period, prices will be subject to review and adjustment. Prices quoted are FOB point of
shipment, with freight included to an accessible point nearest the jobsite. Federal, state or local
sales, use or other taxes are not included in the sales price.
PAYMENT TERMS
Proposal No. 06162014-KH
Proposal Date: June 16, 2014
Page 4 of 9
P R O P O S A L
Ovivo USA, LLC
4246 Riverboat Road • Suite 300 • Salt Lake City, Utah 84123 USA
Tel: (801) 931-3000 • Fax: (801) 931-3080
www.ovivowater.com
Payment terms are: One hundred percent (100%) payment due within thirty (30) days after
Purchaser’s receipt of invoice. Invoice will be submitted after all materials have been received at
the job site or they have been successfully installed by an Ovivo contractor and the field service
check-out and start-up procedure is finalized. Credit is subject to acceptance by the Ovivo Credit
Department.
Purchaser shall remit payment for proper invoices received from Ovivo in accordance with the
payment terms stated above even if the Purchaser has not been paid by the Purchaser’s customer
(the “Owner”), if Purchaser is not the end-user of the Products. Payments are due within thirty (30)
days after Purchaser’s receipt of invoice. Overdue and unpaid invoices are subject to a service
charge of 2% per month until paid.
If Purchaser requests or causes cancellation, suspension or delay of Ovivo’s work, Purchaser shall
accept transfer of title and pay Ovivo all appropriate charges incurred up to date of such event
plus Ovivo’s overhead and reasonable profit. Additionally, all charges related to and risks
incidental to storage, disposition and/or resumption of work shall be borne solely by Purchaser.
Full payment for all work shall be due and payable thirty (30) days from the date work is placed
into storage.
TAXES
Federal, State or local sales, use or other taxes are not included in the sales price. Such taxes, if
applicable, shall be for Purchaser's account.
BACKCHARGES
In no event shall Purchaser/Owner do or cause to be done any work, purchase any services or
material or incur any expense for the account of Ovivo, nor shall Ovivo be responsible for such work
or expenses, until after Purchaser/Owner has provided Ovivo’s PROJECT MANAGER full details
(including estimate of material cost and amount and rate of labor required) of the work, services,
material or expenses, and Ovivo has approved the same in writing. Ovivo will not accept Products
returned by Purchaser/Owner unless Ovivo has previously accepted the return in writing and
provided Purchaser/Owner with shipping instructions.
Proposal No. 06162014-KH
Proposal Date: June 16, 2014
Page 5 of 9
P R O P O S A L
Ovivo USA, LLC
4246 Riverboat Road • Suite 300 • Salt Lake City, Utah 84123 USA
Tel: (801) 931-3000 • Fax: (801) 931-3080
www.ovivowater.com
**PURCHASE ORDER SUBMISSION**
In an effort to ensure all purchase orders are processed timely and efficiently, please submit all
purchase order documentation to the following department and address:
Ovivo USA, LLC
4246 Riverboat Road, Suite 300,
Salt Lake City, Utah 84123
Fax #: 801-931-3080
Tel. #: 801-931-3000
ADDITIONAL FIELD SERVICE
When included and noted in the Product pricing of each proposal item, Ovivo will supply the service of a
competent field representative to inspect the completed installation and adjustment of equipment,
supervise initial operation, and instruct Owner's personnel in the operation and maintenance of each
proposal item for the number of eight (8) hour days. Notwithstanding Ovivo’s performance of the
above-referenced services, Ovivo shall not be held liable for any faulty workmanship or other defects in
the Products’ installation, or for other goods and/or services, performed by third parties unless such
goods and/or services are expressly included under Ovivo’s scope of work.
If additional service is required over and above the Field Services described above, it will be furnished to
the Purchaser and billed to him at the current rate for each additional day required, plus travel and
lodging expenses incurred by the service personnel during the additional service days.
It shall be the Purchaser's responsibility to provide for all necessary lubrication of all equipment prior to
placing equipment in operation. All equipment must be in operating condition and ready for the Field
Service Engineer when called to the project location. Should the Contractor not be ready when the
Field Service Engineer is requested or if additional service is requested, the Ovivo current service rates
will apply for each additional day required. Plus, travel and lodging expenses incurred by the service
personnel during the additional service days.
SURFACE PREPARATION AND PAINTING GENERAL INFORMATION
If painting the Products is included under Ovivo’s scope of work, such Products shall be painted in
accordance with Ovivo’s standard practice. Shop primer paint is intended to serve only as minimal
protective finish. Ovivo will not be responsible for condition of primed or finished painted surfaces
after equipment leaves its shops. Purchasers are invited to inspect painting in our shops for proper
preparation and application prior to shipment. Ovivo assumes no responsibility for field service
Proposal No. 06162014-KH
Proposal Date: June 16, 2014
Page 6 of 9
P R O P O S A L
Ovivo USA, LLC
4246 Riverboat Road • Suite 300 • Salt Lake City, Utah 84123 USA
Tel: (801) 931-3000 • Fax: (801) 931-3080
www.ovivowater.com
preparation or touch-up of shipping damage to paint. Painting of fasteners and other touch-up to
painted surfaces will be by Purchaser's painting contractor after mechanism erection.
Clarifier motors, gear motors and center drives shall be cleaned and painted with manufacturer's
standard primer paint only.
It is our intention to ship major steel components as soon as fabricated, often before drives, motors
and other manufactured components. Unless you can insure that shop primed steel shall be field
painted within thirty (30) days after arrival at the jobsite, we encourage you to purchase these
components in the bare metal (no surface prep or primer) condition.
Ovivo cannot accept responsibility for rusting or deterioration of shop applied prime coatings on
delivered equipment if the primed surfaces have not been field painted within thirty (30) days of
arrival at the jobsite using manufacturers' standard primers. Other primers may have less durability.
GENERAL ITEMS NOT INCLUDED
Unless specifically and expressly included above, prices quoted by Ovivo do not include unloading,
hauling, erection, installation, piping, valves, fittings, stairways, ladders, walkways, grating, wall
spools, concrete, grout, sealant, dissimilar metal protection, oakum, mastic, field painting, oil or
grease, electrical controls, wiring, mounting hardware, welding, weld rod, shims, leveling plates,
protection against corrosion due to unprotected storage, special engineering, or overall plant or
system operating instructions or any other products or services.
MANUALS
The content of any and all installation, operation and maintenance or other manuals or documents
pertaining to the Products are copyrighted and shall not be modified without the express prior
written consent of Ovivo. Ovivo disclaims any liability for claims resulting from unauthorized
modifications to any such manuals or other documents provided by Ovivo in connection with the
Project.
Attachments:
Ovivo USA, LLC General Terms and Conditions, QFORMEWT 0115-02031 Rev H
Ovivo USA 2010 North American Field Service Rate Schedule
Proposal No. 06162014-KH
Proposal Date: June 16, 2014
Page 7 of 9
P R O P O S A L
Ovivo USA, LLC
4246 Riverboat Road • Suite 300 • Salt Lake City, Utah 84123 USA
Tel: (801) 931-3000 • Fax: (801) 931-3080
www.ovivowater.com
WARRANTY AND CONDITIONS
Ovivo standard Terms and Conditions of Sale is attached and made an essential part of this
proposal. These terms and conditions are an integral part of Ovivo’s offer of Products and
related services and replace and supersede any terms and conditions or warranty included in
Purchaser or Owner requests for quotation or specifications and cannot be changed without
written approval from an authorized representative of Ovivo.
Proposal No. 06162014-KH
Proposal Date: June 16, 2014
Page 8 of 9
P R O P O S A L
Ovivo USA, LLC
4246 Riverboat Road • Suite 300 • Salt Lake City, Utah 84123 USA
Tel: (801) 931-3000 • Fax: (801) 931-3080
www.ovivowater.com
1. ACCEPTANCE. The proposal of OVIVO USA, LLC (“SELLER”), as well as these terms and conditions of
sale (collectively the “Agreement”), constitutes SELLER’s contractual offer of goods and associated services, and
PURCHASER’s acceptance of this offer is expressly limited to the terms of the Agreement. The scope and terms
and conditions of this Agreement represent the entire offer by SELLER and supersede all prior solicitations,
discussions, agreements, understandings and representations between the parties. Any scope or terms and
conditions included in PURCHASER’s acceptance/purchase order that are in addition to or different from this
Agreement are hereby rejected.
2. DELIVERY. Any statements relating to the date of shipment of the Products (as defined below) represent
SELLER'S best estimate, but is not guaranteed, and SELLER shall not be liable for any damages due to late
delivery. The Products shall be delivered to the delivery point or points in accordance with the delivery terms stated
in SELLER’s proposal. If such delivery is prevented or postponed by reason of Force Majeure (as defined below),
SELLER shall be entitled at its option to tender delivery to PURCHASER at the point or points of manufacture,
and in default of PURCHASER’s acceptance of delivery to cause the Products to be stored at such a point or points
of manufacture at PURCHASER'S expense. Such tender, if accepted, or such storage, shall constitute delivery for
all purposes of this agreement. If shipment is postponed at request of PURCHASER, or due to delay in receipt of
shipping instructions, payment of the purchase price shall be due on notice from SELLER that the Products are
ready for shipment. Handling, moving, storage, insurance and other charges thereafter incurred by SELLER with
respect to the Products shall be for the account of PURCHASER and shall be paid by PURCHASER when
invoiced.
3. TITLE AND RISK OF LOSS. SELLER shall retain the fullest right, title, and interest in the Products to the
extent permitted by applicable law, including a security interest in the Products, until the full purchase price has
been paid to SELLER. The giving and accepting of drafts, notes and/or trade acceptances to evidence the payments
due shall not constitute or be construed as payment so as to pass SELLER’s interests until said drafts, notes and/or
trade acceptances are paid in full. Risk of loss shall pass to PURCHASER at the delivery point.
4. PAYMENT TERMS. SELLER reserves the right to ship the Products and be paid for such on a pro rata basis,
as shipped. If payments are not made by the due date, interest at a rate of two percent (2%) per month, calculated
daily, shall apply from the due date for payment. PURCHASER is liable to pay SELLER’S legal fees and all other
expenses in respect of enforcing or attempting to enforce any of SELLER’S rights relating to a breach or threatened
breach of the payment terms by PURCHASER. .
5. TAXES. Unless otherwise specifically provided in SELLER’s quotation/proposal; PURCHASER shall pay
and/or reimburse SELLER, in addition to the price, for all sales, use and other taxes, excises and charges which
SELLER may pay or be required to pay to any government directly or indirectly in connection with the production,
sale, transportation, and/or use by SELLER or PURCHASER, of any of the Products or services dealt with herein
(whether the same may be regarded as personal or real property). PURCHASER agrees to pay all property and
other taxes which may be levied, assessed or charged against or upon any of the Products on or after the date of
actual shipment, or placing into storage for PURCHASER'S account.
6. MECHANICAL WARRANTY. Solely for the benefit of PURCHASER, SELLER warrants that new
equipment and parts manufactured by it and provided to PURCHASER (collectively, “Products”) shall be free from
defects in material and workmanship. The warranty period shall be twelve (12) months from startup of the
equipment not to exceed eighteen (18) months from shipment. If any of SELLER’S Products fail to comply with
the foregoing warranty, SELLER shall repair or replace free of charge to PURCHASER, EX WORKS SELLER’S
FACTORIES or other location that SELLER designates, any Product or parts thereof returned t o SELLER, which
examination shall show to have failed under normal use and service operation by PURCHASER within the
Warranty Period; provided, that if it would be impracticable for the Product or part thereof to be returned to
SELLER, SELLER will send a representative to PURCHASER’s job site to inspect the Product. If it is determined
after inspection that SELLER is liable under this warranty to repair or replace the Product or part thereof, SELLER
shall bear the transportation costs of (a) returning the Product to SELLER for inspection or sending its
representative to the job site and (b) returning the repaired or replaced Products to PURCHASER; however, if it is
determined after inspection that SELLER is not liable under this warranty, PURCHASER shall pay those costs. For
SELLER to be liable with respect to this warranty, PURCHASER must make its claims to SELLER with respect to
this warranty in writing no later than thirty (30) days after the date PURCHASER discovers the basis for its
warranty claim and in no event more than thirty (30) days after the expiration of the Warranty Period. In addition to
any other limitation or disclaimer with respect to this warranty, SELLER shall have no liability with respect to any
of the following: (i) failure of the Products, or damages to them, due to PURCHASER’s negligence or willful
misconduct, abuse or improper storage, installation, application or maintenance (as specified in any manuals or
written instructions that SELLER provides to the PURCHASER); (ii) any Products that have been altered or
repaired in any way without SELLER’S prior written authorization; (iii) The costs of dismantling and reinstallation
of the Products; (iv) any Products damaged while in transit or otherwise by accident; (v) decomposition of Products
by chemical action, erosion or corrosion or wear to Products or due to conditions of temperature, moisture and dirt;
or (vi) claims with respect to parts that are consumable and normally replaced during maintenance such as filter
media, filter drainage belts and the like, except where such parts are not performing to SELLER’S estimate of
normal service life, in which case, SELLER shall only be liable for the pro rata cost of replacement of those parts
based on SELLER’S estimate of what the remaining service life of those parts should have been; provided, that
failure of those parts did not result from any of the matters listed in clauses (i) through (v) above. With regard to
third-party parts, equipment, accessories or components not of SELLER’s design, SELLER’S liability shall be
limited solely to the assignment of available third-party warranties. THE PARTIES AGREE THAT ALL
OTHER WARRANTIES, EXPRESS OR IMPLIED, INCLUDING WARRANTIES OF FITNESS FOR A
PARTICULAR PURPOSE AND MERCHANTABILITY, WHETHER WRITTEN, ORAL OR
STATUTORY, ARE EXCLUDED TO THE FULLEST EXTENT PERMISSIBLE BY LAW. All warranties
and obligations of SELLER shall terminate if PURCHASER fails to perform its obligations under this Agreement
including but not limited to any failure to pay any charges due to SELLER. SELLER’S quoted price for the
Products is based upon this warranty. Any increase in warranty obligation may be subject to an increase in price.
7. CONFIDENTIAL INFORMATION. All nonpublic information and data furnished to PURCHASER
hereunder, including but not limited to price, size, type and design of the Products is the sole property of SELLER
and submitted for PURCHASER'S own confidential use solely in connection with this Agreement and is not to be
made known or available to any third party without SELLER’S prior written consent.
8. PAINTING. The Products shall be painted in accordance with SELLER'S standard practice, and purchased
items such as motors, controls, speed reducers, pumps, etc., will be painted in accordance with manufacturers’
standard practices, unless otherwise agreed in writing.
9. DRAWINGS AND TECHNICAL DOCUMENTATION. When PURCHASER requests approval of drawings
before commencement of manufacture, shipment may be delayed if approved drawings are not returned to
SELLER within fourteen (14) days of receipt by PURCHASER of such drawings for approval. SELLER will
furnish only general arrangement, general assembly, and if required, wiring diagrams, erection drawings,
installation and operation-maintenance manuals for SELLER'S equipment (in English language). SELLER will
supply six (6) complete sets of drawings and operating instructions. Additional sets will be paid for by
PURCHASER. Electronic files, if requested from SELLER, will be provided in pdf, jpg or tif format only.
10. SET OFF. This Agreement shall be completely independent of all other contracts between the parties and all
payments due to SELLER hereunder shall be paid when due and shall not be setoff or applied against any money
due or claimed to be due from SELLER to PURCHASER on account of any other transaction or claim.
except for archival or security purposes; b) not to use the program on any computer other than the computer with
which it is supplied; and c) to limit access to the program to those of its employees who are necessary to permit
authorized use of the program. PURCHASER agrees to execute and be bound by the terms of any software license
applicable to the Products supplied.
11. SOFTWARE. PURCHASER shall have a nonexclusive and nontransferable license to use any information
processing program supplied by SELLER with the Products. PURCHASER acknowledges that such programs and
the information contained therein is Confidential Information and agrees: a) not to copy or duplicate the program
12. PATENT INDEMNITY. SELLER will defend at its own expense any suit instituted against PURCHASER
based upon claims that SELLER’s Product hereunder in and of itself constitutes an infringement of any valid
apparatus claims of any United States patent issued and existing as of the date of this Agreement, if notified
promptly in writing and given all information, assistance, and sole authority to defend and settle the same, and
SELLER shall indemnify the PURCHASER against such claims of infringement. Furthermore, in case the use of
the Products is enjoined in such suit or in case SELLER otherwise deems it advisable, SELLER shall, at its own
expense and discretion, (a) procure for the PURCHASER the right to continue using the Products, (b) replace the
same with non-infringing Products, (c) modify the Product so it becomes non-infringing, or (d) remove the
Products and refund the purchase price less freight charges and depreciation. SELLER shall not be liable for, and
PURCHASER shall indemnify SELLER for, any claim of infringement related to (a) the use of the Products for
any purpose other than that for which it was furnished by SELLER, (b) compliance with equipment designs not
furnished by SELLER or (c) use of the Products in combination with any other equipment. The foregoing states
the sole liability of SELLER for patent infringement with respect to the Products
13. GENERAL INDEMNITY. Subject to the rights, obligations and limitations of liabilities of the parties set
forth in this Agreement, PURCHASER shall protect and indemnify SELLER, its ultimate parent, its ultimate
parent’s subsidiaries and each of their respective officers, directors, employees and agents, from and against all
claims, demands and causes of action asserted by any entity to the extent of PURCHASER’s negligence or willful
misconduct in connection with this Agreement.
14. DEFAULT, TERMINATION. In the event that PURCHASER becomes insolvent, commits an act of
bankruptcy or defaults in the performance of any term or condition of this Agreement, the entire unpaid portion of
the purchase price shall, without notice or demand, become immediately due and payable. SELLER at its option,
without notice or demand, shall be entitled to sue for said balance and for reasonable legal fees, plus out-of-pocket
expenses and interest; and/or to enter any place where the Products are located and to take immediate possession of
and remove the Products, with or without legal process; and/or retain all payments made as compensation for the
use of the Products: and/or resell the Products, without notice or demand, for and on behalf of the PURCHASER,
and to apply the net proceeds from such sale (after deduction from the sale price of all expenses of such sale and all
expenses of retaking possession, repairs necessary to put the Products in saleable condition, storage charges, taxes,
liens, collection and legal fees and all other expenses in connection therewith) to the balance then due to SELLER
for the Products and to receive from the PURCHASER the deficiency between such net proceeds of sale and such
balance. PURCHASER hereby waives all trespass, damage and claims resulting from any such entry, repossession,
removal, retention, repair, alteration and sale. The remedies provided in this paragraph are in addition to and not
limitations of any other rights of SELLER.
15. CANCELLATION. PURCHASER may terminate this Agreement for convenience upon giving SELLER
thirty (30) days prior written notice of such fact and paying SELLER for all costs and expenses (including
overhead) incurred by it in performing its work and closing out the same plus a reasonable profit thereon. All such
costs and expenses shall be paid to SELLER within ten (10) days of the termination of the Agreement, or be
subject to an additional late payment penalty of five percent (5%) of the total amount of costs and expenses owed.
16. REMEDIES. The rights and remedies of the PURCHASER in connection with the goods and services
provided by SELLER hereunder are exclusive and limited to the rights and remedies expressly stated in this
Agreement.
17. INSPECTION. PURCHASER is entitled to make reasonable inspection of Products at SELLER’s facility.
SELLER reserves the right to determine the reasonableness of the request and to select an appropriate time for such
inspection. All costs of inspections not expressly included as an itemized part of the quoted price of the Products
in this Agreement shall be paid by PURCHASER.
18. WAIVER. Any failure by SELLER to enforce PURCHASER’s strict performance of any provision of this
Agreement will not constitute a waiver of its right to subsequently enforce such provision or any other provision of
this Agreement.
19. COMPLIANCE WITH LAWS. If applicable laws, ordinances, regulations or conditions require anything
different from, or in addition to, that called for by this Agreement, SELLER will satisfy such requirements at
PURCHASER'S written request and expense.
20. FORCE MAJEURE. If SELLER is rendered unable, wholly or in material part, by reason of Force Majeure to
carry out any of its obligations hereunder, then on SELLER’s notice in writing to PURCHASER within a
reasonable time after the occurrence of the cause relied upon, such obligations shall be suspended. “Force Majeure”
shall include, but not be limited to, acts of God, laws and regulations, strikes, civil disobedience or unrest,
lightning, fire, flood, washout, storm, communication lines failure, delays of the PURCHASER or PURCHASER’s
subcontractors, breakage or accident to equipment or machinery, wars, police actions, terrorism, embargos, and any
other causes that are not reasonably within the control of the SELLER. If the delay is the result of PURCHASER’s
action or inaction, then in addition to an adjustment in time, SELLER shall be entitled to reimbursement of costs
incurred to maintain its schedule.
21. INDEPENDENT CONTRACTOR. It is expressly understood that SELLER is an independent contractor, and
that neither SELLER nor its principals, partners, parents, subsidiaries, affiliates, employees or subcontractors are
servants, agents, partners, joint ventures or employees of PURCHASER in any way whatsoever.
22. SEVERABILITY. Should any portion of this Agreement, be held to be invalid or unenforceable under
applicable law then the validity of the remaining portions thereof shall not be affected by such invalidity or
unenforceability and shall remain in full force and effect. Furthermore, any invalid or unenforceable provision shall be
modified accordingly within the confines of applicable law, giving maximum permissible effect to the parties’ intentions
expressed herein.
23. CHOICE OF LAW, CHOICE OF VENUE. This Agreement shall be governed and construed in accordance
with the laws of the State of Utah, without regard to its rules regarding conflicts or choice of law. The parties
submit to the jurisdiction and venue of the state and federal courts located in Salt Lake City, Utah.
24. ASSIGNMENT. PURCHASER shall not assign or transfer this Agreement without the prior written consent
of the SELLER. Any attempt to make such an assignment or transfer shall be null and void. SELLER shall have
the authority to assign, or otherwise transfer, its rights and obligations in connection with this Agreement, in whole
or in part, upon prior written notice to PURCHASER.
25. LIMITATION ON LIABILITY. TO THE EXTENT PERMISSIBLE BY LAW, SELLER SHALL
HAVE NO FURTHER LIABILITY IN CONNECTION WITH THIS AGREEMENT IN EXCESS OF THE
COST OF CORRECTING ANY DEFECTS, OR IN THE ABSENCE OF ANY DEFECT, IN EXCESS OF
THE VALUE OF THE PRODUCTS SOLD HEREUNDER. NOTWITHSTANDING ANY LIABILITIES
OR RESPONSIBILITIES ASSUMED BY SELLER HEREUNDER, SELLER SHALL IN NO EVENT BE
RESPONSIBLE TO PURCHASER OR ANY THIRD PARTY, WHETHER ARISING UNDER CONTRACT,
TORT (INCLUDING NEGLIGENCE), STRICT LIABILITY, OR OTHERWISE, FOR LOSS OF
ANTICIPATED PROFITS, LOSS BY REASON OF PLANT SHUTDOWN, NON-OPERATION OR
INCREASED EXPENSE OF OPERATION, SERVICE INTERRUPTIONS, COST OF PURCHASED OR
REPLACEMENT POWER, COST OF MONEY, LOSS OF USE OF CAPITAL OR REVENUE OR ANY
OTHER INDIRECT, INCIDENTAL, SPECIAL, PUNITIVE, EXEMPLARY, OR CONSEQUENTIAL
LOSS OR DAMAGE, WHETHER ARISING FROM DEFECTS, DELAY, OR FROM ANY OTHER
CAUSE WHATSOEVER.
REVISION DATE – MARCH 5, 2009
Proposal No. 06162014-KH
Proposal Date: June 16, 2014
Page 9 of 9
P R O P O S A L
Ovivo USA, LLC
4246 Riverboat Road • Suite 300 • Salt Lake City, Utah 84123 USA
Tel: (801) 931-3000 • Fax: (801) 931-3080
www.ovivowater.com
NORTH AMERICAN
FIELD SERVICE RATE SHEET
Effective January 1, 2013
Standard (Travel) Daily Rate (8 hour day) $ 1,200.00
Hourly Rate (4 hour minimum) $ 150.00
Standard (Labor) Daily Rate (8 hour day) $ 1,200.00
Hourly Rate (4 hour minimum) $ 150.00
Saturday Daily Rate (8 hour day) $ 1,800.00
Hourly Rate (4 hour minimum) $ 225.00
Sundays/Holidays * Daily Rate (8 hour day) $ 2,400.00
Hourly Rate (4 hour minimum) $ 300.00
Overtime ** Hourly Rate - Standard Day $ 225.00
Hourly Rate - Weekends & Holidays $ 300.00
* Except Christmas Day and New Years Day
** For all hours worked over eight (8) hours per day
UNLESS OTHERWISE ARRANGED; EXPENSES ARE CHARGED AT ACTUAL COST PLUS 10%
Please Note:
• All of the rates provided are portal to portal. In addition, travel and living expenses will be invoiced at
actual cost PLUS 10 % and documentation will be provided for these expenses. If a fixed Per Diem rate
is required, it will be charged at $250.00 per day (lodging and meals) with the exception of the East
Coast where the price will be $300.00). Travel on Saturday, Sunday or Holidays, and after 8 hours per
day will be billed at the overtime rate.
• Use of Ovivo Fleet vehicles for travel will be charged at the rate of $0.565 per mile.
July 8, 2014
WSB & Associates
Tom Roushar
701 Xenia Ave. S
Suite 300
Minneapolis, MN 55416
Attn: Tom Roushar
Re: Waste Water Treatment Facility Secondary Digester Cover and Primary Digester
Mixer Repairs
Monticello, MN
Dear Tom,
Per your request, I have determined pricing to clean, inspect, and repair the digester
cover and to remove and replace the mixer. We currently have a hole in our schedule
this summer that this work would fill nicely. If we can get started right away we will
discount our labor from $85.00/hr to $75.00/hr. The Standard contractor fees will apply
to all work that is completed. This work has too many unknowns to provide a firm price,
so I have determined budget pricing and we will bill this out as time and material. These
budget numbers are our best estimates of the cost of the work, actual costs may vary.
Digester Cover
Cleaning the attic of the cover
This is the breakdown of the expected costs to clean out the attic space in the cover
of the secondary digester. The City will supply the vac truck and pump truck at no
cost and MBI will work with the city crew to use the vac truck and pump truck from
the WWTF. Our crew will suck the sludge out of the secondary digester cover and
into your vac truck. From there it will go into the pump truck and be pumped to the
primary digester. At this time we will also suck the remaining sludge from the bottom
of the tank so it is ready for scaffolding. The following is a budget; the final price will
be determined by the actual cost of the work based on these rates.
Labor
$85.00/ hr $75.00/ Man Hour
- Budget $9,000.00 to $18,000.00
Possible Equipment Rents
Pressure Washer $35.00/Hr
Other Rental and Small Tools as Needed.
Cleaning the Attic Budget: $9,000.00 to $18,000.00
Scaffolding
This is the breakdown of the work and materials to pick up the scaffold, bring it to the
site, lower everything into the tank with a crane, and set it up. Once inspection and
repairs are complete this estimate covers removing the scaffold, pulling it out of the
tank, and returning it. The following is a budget; the final price will be determined by
the actual cost of the work based on these rates.
Labor
$85.00/ hr $75.00/ Man Hour - Budget $8,000.00 to $14,000.00
Equipment Rents
Systems Scaffold (28 days) - Budget $3,000.00
Truck/ Trailer (pick up & return) $60/ Hr - Budget $400.00
Subcontractor
A&B Crane Service -Budget $1,680.00
Scaffolding Budget $13,080.00 to $19,080.00
Ceiling Investigation and Repair
This is the breakdown of the work once the scaffolding is set up for MBI to clean test
areas on the ceiling for the testing company to do ultrasonic testing. The frequency
and location of these tests will need to be directed by the engineer. Once the testing
is done it can be determined the extent of the damage and the work required to
make the repairs. The testing company could be hired directly by the city and
removed from our work. The following is a budget; the final price will be determined
by the actual cost of the work based on these rates.
Labor
Prep for testing $85.00/ hr $75.00/ Man Hour -Budget $1,200.00
Patching ¼” plate $85.00/ hr $75.00/ Man Hour -Budget $1,200.00
Equipment Rents
Welder $45.00/hr -Budget $700.00
Torch $35.00/ hr
Other Small Tools as needed
Materials
¼” Steel Plate $10.00/SF -Budget $1,000.00
Subcontractor
Ultrasonic Testing (AET/Braun) $100.00/ hr -Budget $1,500.00
Investigation and Repair Budget $5,600.00
Mixer Repair
This is the price to disconnect and remove the mixer from the first stage digester,
pressure wash the shaft off using onsite water, setting it onto the wooden shipping crate,
and then loading it onto the semi supplied by the pump manufacturer. When the pump
arrives back at the plant we will put it back into place.
Labor
24 Man hours @ $85.00/ hr $75.00/hr $1,800.00
Equipment Rents
Pressure Washer $ 100.00
Small Tools $ 100.00
Subcontractor
A&B Crane Service $1,680.00
Killmer Electric $ 600.00
Contractor Fee (Subcontractors) $ 114.00
Contractor Fee (Materials & Labor): $ 300.00
Mixer Repair Total: $4,694.00
Please review this and let me know how to proceed. Contact the undersigned with any
questions.
Sincerely,
Nathan Neubauer
Project Coordinator
Municipal Builders, Inc.
CityCouncilAgenda:07/14/14
1
5H.ConsiderationofadoptingResolution#2014-031Arescindingthepreviously-adopted
legaldescriptionforPineViewAdditionandreplacingwithanamendedlegal
descriptionforvacatedstreetright-of-way (AS/CS)
A.REFERENCEANDBACKGROUND:
OnApril14th,2014,theCityCouncilapprovedaresolutionvacatingrightofwayinthe
areaoftheprioralignmentofOtterCreekRoad.Atthistime,Councilisaskedtorescind
thelegaldescriptionassociatedwiththatresolutioninfavorofacorrectedlegal
description.
Theoriginallegalincludedvacationofthemajorityoftheareaassociatedwiththeprior
alignmentofOtterCreekRoad.However,acorrectedlegaldescriptionfortheresolution
ofvacationisrequiredbasedontwofindingsinthereviewoftheplatbytheWright
CountySurveyor’soffice.
First,thesurveyorfoundthatminorcorrectionstothelegaldescriptionwererequired,
whichhavebeencorrectedinthenewlegalprovidedbytheapplicant.Second,the
surveyornotedthatthefullareaofvacationasoriginallyconsideredbytheCityincluded
portionsofboththeeastandwestsidesofthecenterlineoftheoldOtterCreekalignment.
Onlytheeasterly33’oftherightofwaycanbeplattedbyK.K.Constructionasthe
underlyingpropertyowner;thewesterly33’wouldgotothatunderlyingpropertyowner
ofrecord.
StaffhavereviewedtheoldOtterCreekrightofwayarea,andgiventhepotentialfor
ownershipquestionsassociatedwiththewesterly33’,recommendthattheCounciladopt
acorrectedlegalforvacationthatincludesonlythatareaeastoftheoldOtterCreek
centerline.TheCitywillretainitsrightofwayinterestintheareawestofthecenterline.
AsintendedwiththeplattingofPineView,theeasterly33’ofthevacatedOtterCreek
RoadareawillbeplattedwithOutlotAofPineViewAdditionasshownontheplatof
PineViewSecondAddition.ThePineViewSecondAdditionplathasbeenrevisedby
theapplicanttoillustratethecorrectlotconfigurationandthecorrectedlegal.Theplat
remainscompliantwithlotsetbackandarearequirementsintheR-1district.
TheCityAttorneyhasadvisedthatthereisnoneedtore-approvetheplat,asthisisa
correctionrequiredduetotheunderlyinglegaldescriptionandpropertyrights.
Additionally,astheareatobevacatedislessthantheareapreviouslynoticedfor
vacation,noadditionalpublichearingisrequired.
Thepreviouslyvacateddrainageandutilityeasementsarenotimpactedbythisactionand
willcontinuetoberequiredtobereestablishedasshownontherevisedplat.
A1.BudgetImpact:None.
A2.StaffWorkloadImpact:Somestafftimewasconsumedinresearchingand
preparingthisrequestforCouncil.
CityCouncilAgenda:07/14/14
2
B.ALTERNATIVEACTIONS:
1.MotiontoadoptResolution#2014-031Arescindingthepreviously-adoptedlegal
descriptionforPineViewAdditionandreplacingwithanamendedlegal
descriptionforvacatedstreetright-of-way.
2.Motionofother.
C.STAFFRECOMMENDATION:
CitystaffrecommendsAlternative#1,subjecttotheconditionsidentifiedinResolution
2014-031.Thecorrectedlegaldescriptionforthevacationwillallowforplattingofthe
easterlyportionoftheunneededrightofwayandretainrightofwayinterestinthearea
westofthecenterline.VacationofthisareaoftheformerOtterCreekrightofwayis
consistentwiththeexecuteddevelopmentagreementforPineViewAddition.
D.SUPPORTINGDATA:
A.Resolution#2014-031A
B.CopyofResolution#2014-031
C.OriginalPetitionforVacation
D.CorrectedPlatwithRevisedVacationofRightofWayandLegalDescriptions
CITYOFMONTICELLO
WRIGHTCOUNTY,MINNESOTA
RESOLUTIONNO.2014-031A
RESCINDINGTHELEGALDESCRIPTIONAPPROVEDWITHVACATIONOF
OTTERCREEKROADRIGHT-OF-WAYADJACENTTOPINEVIEWADDITION
ANDAPPROVEAMENDEDLEGALDESCRIPTIONFORAPORTIONOFOTTER
CREEKROADRIGHT-OF-WAY
WHEREAS,theCityofMonticelloreceivedapetitiondatedFebruary11,2014,fromKent
Kjellberg,presidentofK.K.Construction,Inc.andpropertyownerofOutlotA,andLots1and
2ofPineViewAddition,requestingvacationofaportionofOtterCreekRoadright-of-way
lyingalongsideOutlotAofPineViewAdditionandvacationofdrainageandutilityeasements
acrossOutlotAandLots1and2,Block1ofPineViewAddition;and
WHEREAS,onMarch24,2014,theMonticelloCityCouncilheldapublichearingtoconsider
saidvacationsaspetitionedandadoptedResolutionNo.2014-031approvingthevacationof
OtterCreekRoadright-of-wayandvacationofdrainageandutilityeasements;and
WHEREAS,WrightCountySurveyor’sOfficehasdeterminedthatthelegaldescription
describingtheproposedvacationofthepublicstreetright-of-wayknownasOtterCreekRoad
includedaportionofright-of-waythatcouldnotbeconveyedtoadjacentpropertyowner,K.K.
Construction,Inc.,resultingintheneedforcorrectionstothelegaldescription.
NOWTHEREFORE,BEITHEREBYRESOLVEDBYTHECITYCOUNCILOF
MONTICELLO,MINNESOTA:thatthefollowingdescriptionofvacatedOtterCreekRoad
right-of-wayberescinded:
VacationDescriptionofPublicStreet(OtterCreekRoadROW)toberescinded:
ThatpartofGovernmentLot1ofSection3,Township121,Range25,WrightCounty,
Minnesotadescribedasfollows:CommencingatthemostnortherlycornerofPINE
VIEW,accordingtotherecordedplatthereof,WrightCounty,Minnesota;thenceonan
assumedbearingofSouth0degrees18minutes18secondsEastalongthewesttineof
saidPINEVIEW,adistanceof35.32feettothepointofbeginningofthelandtobe
described;thenceSouth27degrees29minutes21secondsWest,adistanceof120.27
feettotheeastlineofCREEKSIDETERRACE,accordingtotherecordedplatthereof,
WrightCounty,Minnesota;thenceSouth0degrees03minutes00secondsWestalong
saideastline,adistanceof18.16feettothenorthwesterlyextensionofthesouthwesterly
lineofsaidPINEVIEW;thenceSouth64degreesEastalongsaidextensionline,a
distanceof62.69feettosouthwesterlycornerofsaidPINEVIEW;thenceNorth0
degrees18minutes18secondswestalongsaidwestlineofPINEVIEW,adistanceof
152.33feettothepointofbeginning.
NOWTHEREFORE,BEITFURTHERRESOLVED:thatthefollowingamendeddescription
ofOtterCreekRoadright-of-waybevacated:
AmendedDescriptionofPublicStreet(OtterCreekRoadROW)tobevacated:
ThatpartofGovernmentLot1ofSection3,Township121,Range25,WrightCounty,
Minnesotadescribedasfollows:CommencingatthemostnortherlycornerofPINE
VIEW,accordingtotherecordedplatthereof,WrightCounty,Minnesota;thenceonan
assumedbearingofSouth0degrees18minutes18secondsEastalongthewestlineof
saidPINEVIEW,adistanceof35.32feettothepointofbeginningofthelandtobe
described;thenceSouth27degrees29minutes21secondsWest,adistanceof70.77feet
tothewestlineofRIVERTERRACE,accordingtotherecordedplotthereof,Wright
County,Minnesota;thenceSouth0degrees18minutes18secondsEastalongsaidwest
line,adistanceof73.42feettothesouthwesterlycornerofsaidRIVERTERRACE;
thenceSouth64degreesEastalongthesouthwesterlylineofsaidRIVERTERRACE,a
distanceof36.81feettothesouthwesterlycornerofsaidPINEVIEW;thenceNorth0
degrees18minutes18secondsWestalongsaidwestlineofPINEVIEW,adistanceof
152.33feettothepointofbeginning.
BEITFURTHERRESOLVED:thatgrantingofsaidvacationissubjecttothefollowing
conditions:
TheapplicantshallsubmittotheCityafinalplatforPineViewSecondAddition
establishingplatperimeterandlotdrainageandutilityeasementsasrequiredperthe
MonticelloSubdivisionOrdinance.
ThefinalplatofrecordshallincludetheWrightCountyRecorder’sdocumentnumbers
forthevacationofrightofwayandeasementsdescribedherein.
Ifprivateutilitiesexistwithintheeasementareatobevacated,itwillbetheproperty
owner’sresponsibilitytoworkwiththeprivateutilitiestorelocatetheirutilities.
ADOPTEDBY theMonticelloCityCouncilthis14thdayofJuly,2014.
CITYOFMONTICELLO
_____________________________
ClintHerbst,Mayor
ATTEST:
_________________________________________
JeffO’Neill,CityAdministrator
CERTIFICATION
STATEOFMINNESOTA
COUNTYOFWRIGHT
IherebycertifythattheforegoingisatrueandcorrectcopyofResolution#2014-031A
dulypassed,adoptedandapprovedbytheMonticelloCityCouncilattheirscheduledmeetingon
July14,2014,andrecordedinminutesofsaidmeeting.
____________________________________
CatherineM.Shuman,DeputyCityClerk
NotaryPublic:_______________________________
Date:___________________________
(STAMP)
CityCouncilAgenda:07/14/14
1
5I.ConsiderationofapprovingacontractwithWSB&AssociatesforMarket
MatchingEconomicDevelopmentServicesforJuly2014-June2015 (JO/WO/AS)
A.REFERENCEANDBACKGROUND:
TheCityCouncilandEDAhavebeenaskedtoattendajointworkshoptoconsiderthe
extensionoftheMarketMatchingcontractforoneyear.TheCityandEDAcontracted
withWSBMarketMatchinginJuneof2013.ThecontractranfromJuly1st,2013
throughJune,2014.TheCityCouncilisaskedtotakeactiononthecontractaspartofits
regularmeeting.
InJune2014,theEDAreviewedtheprogressanddeliverablesassociatedwiththe
previousyear’scontract.Basedonthatreview,theEDAtookactiontodirectstaffto
workwithWSBtoprepareaMarketMatchingcontractincludingarevisedscopeof
servicesforJuly2014throughJune2015.
Asoutlinedintheproposedcontract,thecomingyearforMarketMatchingwillbe
focusedonreinforcingrelationshipsandnetworksbuiltoverthepastyearinthe
marketplaceandincreasedprospectdevelopment.MarketMatching’snewcontractwill
begaugedonthenumberandqualityofprospectscultivatedandtheresultsofthelead
follow-up.TheCityislookingforMarketMatchingtodevelopleadsinallsectors–
residential,industrialandcommercial.
TheWSBMarketMatchingteamwillbepresentduringtheworkshoptoprovidean
overviewofthepreviouscontractresultsandtooutlineservicesproposedunderthenew
contract.Adraftoftheproposedcontract,alongwithatimelineforservicesanda
communicationsschedule,isattachedforreference.
TheEDAhasbeenaskedtotakeformalactionattheconclusionoftheworkshop
regardingthecontract.
A1.BudgetImpact:Similartothepriorcontractyear,theCityCouncilandEDAare
eachaskedtofunda50%shareofthecontract.The2013-2014contractincluded
aprovisionlockinginthecurrentrateof$4,000/month.Assuch,the2014/2015
MarketMatchingcontractisproposedat$48,000fortheyear,ora$24,000cost
eachtotheEDAandCityCouncil.
AstheEDAandCouncilmayrecall,therationaleforthiscostsplitisduetothe
pastEDAfundingarrangement,wherebyeconomicdevelopmentactivitieswere
fundedonacostsharebasisbetweenCitygeneralfundandEDAgeneralfund.
Eachyear,theEDAmakesanappropriationrequesttotheCityCouncilfor
fundingofeconomicdevelopmentactivities.Lastyear,thatappropriationrequest
totaled$92,000,whichincludedanamountrepresentativeoftheCity’s50%share
oftheMarketMatchingcontract.The2014GeneralFundtransfertotheEDA
Fundtransferis$93,000andalsoincludesanamountrepresentativeoftheCity’s
50%MarketMarchingshare.
2
However,byapprovingthecontract,theEDAandCityCouncilarealso
committingtoallocate$12,000eachin2015tofundMarketMatchingservices
underthiscontract.
A2.StaffImpact:StaffbelievesthattheuseofMarketMatchinghasallowed
Monticellotoreachanetworkwellbeyondwhatinternalstaffcouldaccomplish
ontheirown.TheMarketMatchingteamisabletoattendattrade,industryand
networkingeventsthatexistingstaffwouldnotbeabletocommittogiven
existingworkloads.Inshort,MarketMatchingactsasanexternalstaffsales
team.ThisallowsCitystafftofocusoninternaleconomicdevelopment
initiativesandprocesses.
B.ALTERNATIVEACTIONS:
1.MotiontoapprovetheproposedcontractforservicesbetweentheCityof
MonticelloandWSB&AssociatesforMarketMatching,includingfunding50%
oftheannualexpense($48,000)bytheCityCouncil,subjecttocontractrevisions
assuggestedbytheEDA.
2.MotiontodenytheproposedcontractforservicesbetweentheCityofMonticello
andWSB&AssociatesforMarketMatching,andthefundingof50%ofthe
annualexpense($48,000)bytheCityCouncil.
C.STAFFRECOMMENDATION:
StaffrecommendsAlternative#1.
ThefirstyearofMarketMatchingwasfocusedonbuildingtheuniquesellingproposition
andinformationresources(InfoTracker,salessheets,marketdata,mapping)forthe
marketingeffort,alongwithestablishingMonticello’sMarketMatchingeffortsinthe
largermarketplace.Thisfoundationwasnecessarytosupportexternalmarketingefforts.
Withthisfoundationnowinplace,MarketMatchingwillfocusonleaddevelopmentand
follow-up.
Aspreviouslynoted,staffsupportstheoveralluseofWSB’sMarketMatchingservices
basedonthefollowing:
StaffbelievesthattheproductistailoredtoMonticello’sneedsandtheevolving
ideaofasales-basedeconomicdevelopmentstrategy.
Theprogramhasbuiltandwillcontinuetosupportanimportantfoundationof
inventoryandassetinformationfortheCity.
TheuseofconsultingservicesallowstheCitytocontractforaspecifictimeframe.
TheCitycanterminatethecontractifitfindsthatitisnotmeetingintendedgoals.
TheuseofcontractservicesallowstheCitytodeterminethesuccessofasales-
focusedapproachforeconomicdevelopment,withoutbeinglockedintothe
3
creationofastaffposition.TheCitycanthenassesstheresultsofboththe
contractandthenewsalesapproach.
Thecosttoimplementthesales-basedapproachthroughconsultingservicesis
lessthantheCitywouldlikelyneedtopaytogeneratetheequivalenttask
productsnotedabove.
Usingaconsultingserviceforleaddevelopmentandinitialleadresponsewill
allowexistingcitystafftofocustheirattentiononcontinuedcommunity
marketingandbusinessretentionefforts.
Citystaffwillbeactivelyinvolvedinworkingwithprospectsastheydevelopand
movethroughthedecisionprocess.Existingstaffandconsultants(Ehlers,
Kennedy&Graven,NorthlandSecurities)willalsocontinuetheirrolesin
supportingthedevelopmentoffinancialandlegalpackagesnecessaryforany
transaction.
D.SUPPORTINGDATA:
A.ProposedMarketMatchingEconomicDevelopmentServicesContract
B.MarketMatchingTimelineofServices
C.MarketMatchingCommunicationsSchedule
engineeringplanningenvironmentalconstruction 701XeniaAvenueSouth
Suite300
Minneapolis,MN55416
Tel:763-541-4800
Fax:763-541-1700
EqualOpportunityEmployer
wsbeng.com
F:\CityClerk\agendas\CouncilAgendas\2014CouncilAgendas\07-14-14\5I2015EconomicDevelopmentContract-Monticello.docx
July9,2014
Mr.JeffO’Neill
CityAdministrator
CityofMonticello
505WalnutAvenue,Suite1
Monticello,MN56069
Re:EconomicDevelopmentServicesfortheCityofMonticello
DearMr.O’Neill:
ThankyouforagainprovidingWSB&Associatestheopportunitytosubmitthisproposaltoprovide
EconomicDevelopmentServicesfortheCityofMonticello.Providedbelowisasummaryoftheproposed
ScopeofServicesandFee:
SCOPEOFSERVICES:
TheEconomicDevelopmentServicesMonthlyinfographicpreparedbyWSB&Associatesanddated
July,2014isadoptedasanaddendumtothiscontract.AllservicesasoutlinedwithintheEconomic
DevelopmentServicesMonthlyinfographicareherebyassumedservicesanddeliverablesaspartofthe
followingcontract.
Task1:DeliverableDevelopment&DataCollection
Deliverable1:MarketData
-Revision/completionoftheoriginalcontract’sremainingtangibledeliverableswithin
thefirst45daysofthenewcontract.Toincludethefollowing:
o Housingmarketdemandanalysisreport
-Deploymentofcompletedmarketmatchingmaterials
-Reviewsitemapsandupdateeverytwomonths
Deliverable2:DataDeployment
-Dedicatedfocusonnewsreleaseanddevelopmentofeconomic
development/businessfeaturesforCitycommunicationoutlets.
o WSBwillcoordinatepressreleasesasneeded
o WSBwillensureconsistentintegrationofUSPthroughoutallmarketing
efforts
o WSBwillprovidecontentandcopyfortheCity’seconomicdevelopment
website
Deliverable3:DataManagement
-ManageandreportonSalesForceCRMCommunityPartnerPortal
o WSBwillincludetheCRMreportinthewrittenmonthlymarketmatching
reporttostaff.
-BusinessRetention&Expansion
Page2-DRAFT
F:\CityClerk\agendas\CouncilAgendas\2014CouncilAgendas\07-14-14\5I2015EconomicDevelopmentContract-Monticello.docx
-WSBwillconductthreeBR&Einterviewspermonth
o DatacollectedfromBR&Einterviewswillbeprovidedtoandreviewedby
GreaterMSP&MNDEED
o WSBwillincludedatacollectedfromBR&Einterviewsinmonthlymarket
matchingreporttostaff
Deliverable4:EconomicDevelopmentOpportunities
-WSBwillidentifyandassistinidentifyingpotentialeconomicdevelopment
opportunities:includingthefollowing:
o LandAcquisition
o FinancialIncentiveOpportunities
Task2:MarketEngagement
Deliverable5:ProfileofTargetedProspects
-EDA/staffdiscussionregardingtargetedindustriesandpotentialmarketentrantsasit
relatestoCity-heldproperties
o CoordinateEDA/CityNegotiationsTeamworkonCity-heldpropertiesto
determinesaledispositionandrepresentation;producesalepieces;develop
andpresentrecommendedsalesstrategy
Producesalespieces
Developandpresentsalesstrategy
-CoordinationofTourforProspectiveLeads
o WSBwillcoordinatetoursforprospectiveleadsasnecessary.
Deliverable6:DeliverLeads/AssistinClosing
-ActasaconduitforinformationandresourceformarketentrantandtheCitystaff
(on-going)
o WSBwilltakealeadroleinprovidingdetaileddevelopmentrelated
informationtoallqualifiedleadsincluding:
Assistancewithfinancialpackagepreparationinconsultationwith
Citystaff,policymakers,andfinancialconsultant
Attendanceatpre-designmeetingsassociatedwithMarketMatching
leads.
Deliverable7:
-Activenetworkingwithpotentialmarketentrants(on-going)
o ExternalOrganizationandlevelofparticipation(on-going)
o GreaterMSP–WSBretainsmembershipandactsasrepresentative
o DEED–CityretainsmembershipsandWSBactsasrepresentative
o EDAM–WSBretainsmembershipandWSBactsasrepresentative
o CentralMinnesotaInitiativeFoundation–CityretainsmembershipandWSB
actsasrepresentative
o MinnesotaChamberofCommerce–WSBretainsmembershipandactsas
representative
o BroadbandProperties–CityretainsmembershipandWSBactsas
representative
o WrightCountyEconomicDevelopmentPartnership–membershipbyboth
CityandWSBandWSBactsasprimaryrepresentativewithCitysupport
o MinnesotaHighTechAssociation–WSBactsasrepresentative
o CentralMinnesotaIndustrialPartnership–WSBactsasrepresentative
o CentralMNManufacturer’sAssociation–WSBactsasrepresentative
o ConferenceandAssociationTradeShows–TBD
o SensibleLandUseCoalition–WSBactsasrepresentative
o LeagueofMinnesotaCities–WSBactsasrepresentative
o NAIOP–WSBactsasrepresentative
o CoreNetGlobal–WSBactsasrepresentative
o UrbanLandUseInstitute–WSBactsasrepresentative
-MaintaincurrentunderstandingofexistingGrantprogramsforpotentialusein
conjunctionwithMarketMatchingefforts.
Page3-DRAFT
F:\CityClerk\agendas\CouncilAgendas\2014CouncilAgendas\07-14-14\5I2015EconomicDevelopmentContract-Monticello.docx
o Monthlyreporttostaffonopportunitiesandcorrespondingprojectfit
Task3:ProjectManagement
Deliverable8:
-ProvideconsistentandeffectivecommunicationwithCityStaff,EDA,andCity
Council.(seecommunicationsplan)
o WSBwillprovideWeeklyEmailUpdatestoCityStaff
o WSBwillattendBi-WeeklyStaffUpdateMeetings
o WSBwillprovideWrittenMonthlyMemotoCityStaffofMarketMatching
efforts
o WSBwillprovideBi-MonthlyPresentationtotheEDAandCityCouncil
meetingsonamonthlyrotatingbasis.Thegoverningbodywhosemeetingis
notattendedwillreceiveanemailupdate
o WSBwillpreparewebsiteinformation
o WSBwilldeploytheCityEconomicDevelopmentFlyer
o WSBwillpreparePropertySiteFlyersonanasneededbasis
o WSBwillcoordinatewiththeChamberofCommerceinconjunctionwith
MarketMatchingeffortsandpropertymapupdates.
FEEFORSERVICES
Asoutlinedinthe2014EconomicDevelopmentServicescontract,theCityhastheoptiontoretainWSB
&Associatesforanadditional12monthsatthefeeof$4,000permonth.
TravelexpensesincurredbyWSBwithintheStateofMNaspartoftheEconomicDevelopmentServices
offeringarestillincludedinthemonthlyfeestatedabove.TravelexpensesincurredbyWSBfortravel
outsideoftheStateofMNthatisdirectedbytheCityofMonticelloshallbepaidforaccordingtoa
negotiatedprice.
Additionally,feesforservicesoutsideoftheabovedescribedscopethatmayberequiredfromtimeto
timeshallbecompletedatanadditionalhourlyrate.Typesofservicescouldincludethefollowing:
-Grant/FundingSupport
-FiberNetMonticelloMarketingSupport
-WebsiteManagement
TheabovedescribedserviceswillbeprovidedinaccordancewithWSB’sin-placeProfessionalServices
Agreement.IfyouareinagreementwiththeproposedprojectScopeofServicesandFEE,pleasesign
belowandreturnonecopytoouroffice.
Ifyouhaveanyquestionsorcommentsregardingtheaboveinformation,pleasecontacteitheroneofus
at(763)541-4800.
Sincerely,
WSB&Associates
JohnUphoffBrianJ.Bourassa,PE
EconomicDevelopmentSpecialistPrincipal
ApprovalSignature
By:______________________________
Title:____________________________
Date:____________________________
Proposal to Provide Professional Services for 2014/15 Market Matching Contract
2014 2015
Proposed Schedule Pr
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Market Engagement Task
1st Quarter 1st Quarter3rd Quarter 4th Quarter2nd Quarter
Deliverable
DRAFT-
Housing Study
Presented to City
Council & EDA for
Comment
Greater MSP Greater MSP Greater MSP Greater MSP Greater MSP
DEED DEED DEED DEED DEED
EDAM EDAM EDAM EDAM
Central MN Initiative Foundation Central MN Initiative Foundation Central MN Initiative Foundation Central MN Initiative Foundation
Minnesota Chamber of Commerce Minnesota Chamber of Commerce Minnesota Chamber of Commerce Minnesota Chamber of Commerce
Wright County Economic Development Partnership Wright County Economic Development Partnership Wright County Economic Development Partnership Wright County Economic Development Partnership
Minnesota High Tech Association Minnesota High Tech Association Minnesota High Tech Association Minnesota High Tech Association
Central Minnesota Industrial Partnership Central Minnesota Industrial Partnership Central Minnesota Industrial Partnership Central Minnesota Industrial Partnership
SLUC SLUC SLUC SLUC SLUC
LMC LMC LMC LMC
NAIOP NAIOP NAIOP NAIOP
CoreNet Global CoreNet Global CoreNet Global CoreNet Global
ULI ULI ULI ULI ULI
Final-
Housing Study
Presented to City
Council & EDA
Deliverable-
Property Maps
Deliverable-
Property Maps
Deliverable-
Property Maps Deliverable-
Property Maps
Deliverable-
Property Maps
Deliverable-
Property Maps
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AUTHORITY MEETING
WSB STAFF & CITY STAFF
BI-WEEKLY MEETING
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Review &
Update Existing
Contract
Supporting Deliverable Tasks
Update Property
Availability Maps
Coordinate EDA/City Negotiations Team Deploy Sales Strategy Deploy Sales Strategy
Update Property
Availability Maps Update Property
Availability Maps
Update Property
Availability Maps
Update Property
Availability Maps
Update Property
Availability Maps
CC
CC CCCC CC CC CC CC CCCCCCCCCC CC
EDA
KEY
Overview of the Process
The following details our methodology for
completing the 2014/15 Market Matching Contract.
We have grouped the activities associated with
the project into three main categories, each with
associated tasks, meetings, and deliverables. All
of this is in addition to weekly market matching
efforts.
EDA
SM
SM
SM SM SM SM SMSMSM SMSMSM SM SMSMSMSMSMSMSMSMSMSMSMSMSM SM
EDA EDA EDA EDA EDA EDA EDAEDAEDAEDAEDAEDA
July August September October November December January February March April May June July
PROJECT MANAGEMENT
• WSB Staff will attend EDA and
City Council meetings on a monthly
rotating basis. The governing body
whose meeting is not attended
will receive an email update.
• WSB Staff will attend bi-weekly
meetings with City Staff.
• WSB Staff will provide weekly
updates to City Staff on
market matching efforts.
MARKET ENGAGEMENT
• WSB Staff will attend various
networking events to maximize
potential lead generation.
• WSB Staff will meet regularly with
developers, business owners and
builders to gain market insight and
maximize potential lead generation.
DELIVERABLES DEVELOPMENT
• Review property availability maps
every two months. Revised maps
to be made available to City Staff
by first Friday of each month.
• Weekly email update to City Staff.
• Bi-weekly meeting with WSB
Staff and City Staff.
• Monthly email updates from
WSB Staff to City Staff.
• Provide market matching materials
for deployment on City website.
EMAIL EMAIL EMAIL EMAIL EMAIL EMAIL
EMAILATTENDATTEND
ATTEND ATTEND
ATTEND
ATTEND
ATTEND
ATTEND
ATTEND
ATTEND
ATTEND
ATTEND
ATTEND
ATTEND
EMAIL EMAIL EMAIL EMAIL EMAIL
Page1
ProjectCommunicationKeyContacts:
JeffO’Neill,CityAdministrator(763)271-3215
AngelaSchumann,CommunityDevelopmentDirector(763)271-3224
RachelLeonard,CommunicationsCoordinator(763)295-2711
CommunicationPlan JohnUphoff,EconomicDevelopmentSpecialist(320)534-5951
MonticelloMarketMatchingServices BrianBourassa,EconomicDevelopmentSpecialist(763)287-8536
KelseyJohnson,CommunityPlanner(763)287-8521
EricMaass,CommunityPlanner(763)270-3463
Plan Element Responsibility Begin
Implementation
End Interval
WeeklyEmailUpdatestoStaff:
WSBwillprovideAngelaandJeffwithaweeklyemailupdateon:
Activitiesthatoccurredduringeachweek;
People/businesses/developersWSBmetwithandtheirfeedback;
EventsWSBattended;
Progresstowardsgoals;and
Anticipatedtasksforthenextweek
WSB 7/16/14 Ongoing Weekly –
EveryFriday
Bi-WeeklyStaffUpdateMeetings:
WSBstaffwillmeetwithAngelandJeffevery1 st and3rd Thursdayofeach
month(oradateagreeduponbytheCityandWSB)todiscuss:
Activity;
Deliverables;
Upcomingevents/tasks;
Otherinformationasnecessary
City/WSB 7/16/14 Ongoing Bi-Weekly-
1st and3rd
Thursdayat
8:30amat
CityHall
Written MonthlyMemotoStaff:
WSBwillprepareawrittenmemosummarizing:
Activitycompletedinthepreviousmonth;
People/businesses/developersengagedinthepreviousmonth;
EventsWSBstaffattendedandanyfeedbackfromthoseevents;
Progresstowardgoals;
Marketmatchingleads;
OpportunityTrackersummary;
Deliverablescompleted;and
WSB Duethe1st
Fridayof
eachmonth
Page2
Actionitemsforupcomingmonth.
Bi-MonthlyPresentationtoEDAandCC:
WSBstaffwillgiveanupdateofactivitiesanddeliverablescompletedtothe
EDAandCityCouncilonabi-monthly,rotatingbasis.Thepolicymakingbody
whichisnotattendedthatmonthwillreceiveanemailupdateonallmarket
matchingactivities.
WSB Ongoing Bi-monthly
WebsiteInformation:
WSBwillprepareandprovidetheCitywithinformationtobepostedonthe
City’swebsiterelatedtoavailablepropertiesandmarketdata.TheCitywill
beresponsibleforputtingthisontotheWebsite.
City/WSB Ongoing Ongoing
CityEconomicDevelopmentFlyer :
WSBwilldeploythepreviouslypreparedCityofMonticelloEconomic
DevelopmentFlyer.Thisflyerwillbe usedtomarkettheCity,specificparcels,
andaidintheRFIprocess.
WSB Ongoing Ongoing
PropertySiteFlyers:
WSBwillupdatePropertySiteFlyersforallEDAowned,Cityownedand
privatelyownedparcelsavailablewithintheCityofMonticello.The
“Downtown”parcelswillbepreparedtoshowacollectivepackagingof
parcelsratherthanindividualsites.
WSB Ongoing Updatedat
leastevery
six(6)
months–
unless
needed
ChamberofCommerceCoordination:
WSBstaffwillperiodicallyreviewtheChamberofCommercewebsiteto
ensurepropertyinformationwithintheCity’sOpportunityTrackerandall
ProjectSiteFlyersareup-to-date.
WSB Ongoing Bi-monthly
CityCouncilAgenda:07/14/14
1
7A.Considerationofaccepting2013AuditReport (WO)
A.REFERENCEANDBACKGROUND:
Inkeepingwithoperationoftransparentorganizationstrustedwithproperlymanaging
publicdollars,allcitiesarerequiredtohaveaprivatethirdpartyconductanannualaudit
ofitsfinancialstatements.TheauditfirmofMalloy,Montague,Karnowski,Radosevich
&Co.,P.A.(MMKR)conductedtheaudit,whichisthefifthyearforthefirmauditing
theCity.InadditiontheCity’s2012ComprehensiveAnnualFinancialReport(CAFR)
forthefourthtimereceivedtheGovernmentFinanceOfficersAssociation’s(GFOA)
CertificateofAchievementforExcellenceinFinancialReporting,andthe2013CAFRis
inthesameformatsostaffcanapplyforthisawardonceagain.
Theauditfindingsfor2013showcontinuedimprovementovertheresultsinpastyears
andreflecttheongoingpositivematurationofourfinancialsystemsunderthecurrent
FinancialDepartmentandcityadministration.AllFinanceDepartmentpersonnel
contributedtotheauditprocess,withtheassistantfinancedirectorplayingacritical role.
The2013auditdidnotrequireasingleauditbecompletedforanygrantstheCity
receivedin2013.
AgaintheCity’sCAFRwaspreparedinaformattoreceiveGFOA’sCertificateof
AchievementforExcellenceinFinancialReporting.Byhavingthereportinthisformat,
theCity’sreportcanbeeasilycomparedtoothercities’financialreportsfromaroundthe
countryandcouldhelptheCityachieveabetterbondrating.AnareathatIthinkwillbe
ofvalueistheStatisticalSection,whichbeginsonpage71,andprovides10year(when
available)financialandotherdataoftheCity.
JimEichten,PrincipalofMMKR,willpresentasummaryoftheirfindingsand
summarizethehighlightsoftheCity’s2013CAFR.
Theinformationpresentedattheworkshopandcouncilmeetingwillbeavailableon-line
atthecity’swebsiteunderCityServices–Finance.Noextracopieswillbeavailablefor
distribution.
A1.BudgetImpact:Acceptanceoftheauditreportresultsinnocosts.
A2.StaffWorkloadImpact:Prepareagendaitemandposttowebsite.
B.ALTERNATIVEACTIONS:
1.Motiontoacceptthe2013AuditReport.
2.Motiontonotacceptthe2013AuditReportatthistime.
CityCouncilAgenda:07/14/14
2
C.STAFFRECOMMENDATION:
ThecitystaffsupportsAlternative#1.Thecityadministratorandfinancedirectorwould
liketoalsocommendtheworkoftheFinanceDepartmentstaffinthisaccomplishment.
Also,thescopeofanauditgoesbeyondtheFinanceDepartmentandincludesother
scrutinyofoperationsaffectingallcitydepartments.Forinstance,biddingprocedures,
contractadministration,employeereimbursements,andotherprocessesarereviewedby
theauditorsinaccordancewithstatestatutes.
D.SUPPORTINGDATA:
2013ComprehensiveAnnualFinancialReport,SpecialPurposeAuditReport,
ManagementLetter(allbound)
City of Monticello, Minnesota
Comprehensive Annual Financial Report
Year Ended
December 31, 2013
CITY OF MONTICELLO
WRIGHT COUNTY, MINNESOTA
Comprehensive Annual Financial Report
Year Ended
December 31, 2013
Prepared By Finance Department
Wayne Oberg, Finance Director
Angie McIntire, Assistant Finance Director
Annie Zimmerman, Finance Assistant – AP
Pat Kovich, UB Specialist
Carolyn Granger, Finance Assistant
Heidi Eckerman, Payroll – Finance Clerk
(This page left blank intentionally)
WRIGHT COUNTY, MINNESOTA
Page
INTRODUCTORY SECTION
CITY COUNCIL AND SUPPORT PERSONNEL i
CERTIFICATE OF ACHIEVEMENT FOR EXCELLENCE IN
FINANCIAL REPORTING ii
ORGANIZATIONAL CHART BY DIVISION iii
FINANCE DIRECTOR’S LETTER OF TRANSMITTAL iv–vii
FINANCIAL SECTION
INDEPENDENT AUDITOR’S REPORT 1–3
MANAGEMENT’S DISCUSSION AND ANALYSIS 4–14
BASIC FINANCIAL STATEMENTS
Government-Wide Financial Statements
Statement of Net Position15
Statement of Activities16
Fund Financial Statements
Governmental Funds
Balance Sheet17–18
Reconciliation of the Balance Sheet to the Statement of Net Position19
Statement of Revenue, Expenditures, and Changes in Fund Balances20–21
Reconciliation of the Statement of Revenue, Expenditures, and
Changes in Fund Balances to the Statement of Activities22
Proprietary Funds
Statement of Net Position23
Statement of Revenue, Expenses, and Changes in Fund Net Position24
Statement of Cash Flows25
Notes to Basic Financial Statements26–51
REQUIRED SUPPLEMENTARY INFORMATION
Monticello Fire Department Relief Association
Schedule of Funding Progress52
City of Monticello Other Post-Employment Benefits Plan
Schedule of Funding Progress52
CITY OF MONTICELLO
Table of Contents
WRIGHT COUNTY, MINNESOTA
Page
REQUIRED SUPPLEMENTARY INFORMATION (CONTINUED)
Budgetary Comparison Schedules
Schedule of Revenue, Expenditures, and Changes in Fund Balances –
Budget and Actual
General Fund53–58
Community Center Special Revenue Fund59
Economic Development Authority Special Revenue Fund60
Notes to the Required Supplementary Information61
SUPPLEMENTAL INFORMATION
Combining and Individual Fund Statements
Nonmajor Governmental Funds62
Combining Balance Sheet63–64
Combining Statement of Revenue, Expenditures, and Changes in Fund Balances65–66
Internal Service Funds67
Combining Statement of Net Position68
Combining Statement of Revenue, Expenses, and Changes in Net Position69
Combining Statement of Cash Flows70
STATISTICAL SECTION 71
Net Position by Component72–73
Changes in Net Position74–77
Fund Balances of Governmental Funds78–79
Changes in Fund Balances of Governmental Funds80–81
General Governmental Tax Revenues by Source82
Governmental Funds Tax Revenues by Source83
Tax Capacity Value and Estimated Market Value of Taxable Property 84–85
Property Tax Rates – Direct and Overlapping Governments86
Principal Property Taxpayers87–88
Property Tax Levies and Collections89–90
Water Sold by Type of Customer91
Utility Rates per Year 92–93
Ratios of Outstanding Debt by Type 94–95
Ratios of Net General Bonded Debt Outstanding96
Direct and Overlapping Governmental Activities Debt97
Legal Debt Margin Information 98–99
Pledged Revenue Coverage100
Demographic and Economic Statistics101
Principal Employers 102
Full-Time Equivalent City Government Employees by Function103–104
Operating Indicators by Function 105–106
Capital Asset Statistics by Function107–108
CITY OF MONTICELLO
Table of Contents (continued)
INTRODUCTORY SECTION
-i-
Term Expires
Clint Herbst12/31/2014Mayor
Lloyd Hilgart12/31/2014Councilmember
Tom Perrault 12/31/2016Councilmember
Glen Posusta12/31/2016Councilmember
Brian Stumpf12/31/2014Councilmember
City Administrator Jeff O’Neill
Finance Director Wayne Oberg, MBA, CPA
Public Works Director Vacant
Community Development DirectorAngela Schumann, AICP
Community Center Director Kitty Baltos
City EngineerWSB & Associates, Inc.
Economic Development DirectorVacant
Human Resource Manager Tracy Ergen
Deputy ClerkCathy Schuman
DMV Manager Ann Eckman
Liquor Store Manager Randall Johnsen
Utility SuperintendentMatt Theisen
Street SuperintendentTom Moores
Parks SuperintendentTom Pawelk
Building OfficialRon Hackenmueller
Fire ChiefSteve Joerg
City AttorneyJoel Jamnik, Campbell Knutson, P.A.
CITY OF MONTICELLO
CITY COUNCIL
SUPPORT PERSONNEL
City Council and Support Personnel
as of December 31, 2013
-ii-
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-iii-
(This page left blank intentionally)
-iv-
June 27, 2014
To the Honorable Mayor,
Members of the City Council,
and Citizens of Monticello, Minnesota
I am pleased to present the Comprehensive Annual Financial Report (CAFR) of the City of Monticello,
Minnesota (the City) for the fiscal year ended December 31, 2013. Responsibility for both the accuracy of
the data and the completeness and fairness of the presentation, including all disclosures, rests with the
City. To the best of our knowledge and belief, the enclosed data is accurate, in all material respects, and is
reported in a manner designed to present fairly the financial position and results of operations of the
various funds of the City. All disclosures necessary to enable the reader to gain an understanding of the
City’s financial activities have been included.
Management assumes full responsibility for the completeness and reliability of the information contained
in this report, based upon a comprehensive framework of internal control that it has established for this
purpose. Because the cost of internal control should not exceed anticipated benefits, the objective is to
provide reasonable, rather than absolute, assurance that the financial statements are free of any material
misstatements.
The City’s financial statements have been audited by Malloy, Montague, Karnowski, Radosevich & Co.,
P.A. (MMKR), a firm of licensed certified public accountants. The goal of the independent audit was to
provide reasonable assurance that the financial statements of the City for the fiscal year ended
December 31, 2013 are free of material misstatements. The independent audit involved examining, on a
test basis, evidence supporting the amounts and disclosures in the financial statements, assessing the
accounting principles used and significant estimates made by management, and evaluating the overall
financial statement presentation. The independent auditor concluded, based upon the audit, that there was
a reasonable basis for rendering an unmodified opinion that the City’s financial statements for the fiscal
year ended December 31, 2013, are fairly presented in conformity with accounting principles generally
accepted in the United States of America. The independent auditor’s report is presented as the first
component of the financial section of this report.
The preparation of this CAFR is a requirement of state law. Also, the CAFR is required by the bond
rating agencies before they will rate the City’s bonds. The report can be used by the City Council and the
citizens of the City to gain a better understanding of the financial condition of the City.
Accounting principles generally accepted in the United States of America require that management
provide a narrative introduction, overview, and analysis to accompany the basic financial statements in
the form of Management’s Discussion and Analysis (MD&A). This letter of transmittal is designed to
complement the MD&A and should be read in conjunction with it. The City’s MD&A can be found
immediately following the report of the auditors.
-iv-
-v-
PROFILE OF THE CITY
The City is situated in a prime location on Interstate 94 between Minneapolis/St. Paul and the City of
St. Cloud. The City has experienced tremendous growth within the last 15 years in the residential,
commercial, office, and retail sectors. The City is a rapidly growing, freestanding urban fringe community
encompassing approximately 5,000 acres and a population nearing 13,000. The City is home to one of
Minnesota’s two nuclear power plants, both owned by Xcel Energy, Inc. (NYSE: XEL). With a small
carbon footprint, the Xcel plant is also the City’s largest employer and property taxpayer. 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 sewage 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 river levels of the Mississippi River made a logical
place for a river crossing. Founded in 1856, the City grew quickly during the early settlement years and
then leveled to a population of about 1,300. It was this original settlement that became the core city and
survives today as downtown Monticello.
The City 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 council members. The City Council exercises legislative authority and determines all
matters of policy. The City Council appoints personnel responsible for the proper administration of all
affairs relating to the City. Council members serve four-year terms, with two members elected every
two years. The mayor is elected for a two-year term. The mayor and members of the City Council are
elected at large.
The City provides a full range of services: the construction and maintenance of streets and other
infrastructure; snow removal; park and cemetery maintenance; recreational and cultural activities; water,
sewer, surface water, residential garbage, and recycling systems; community development, building
inspection, planning, police, fire, and liquor store operations; a city-run fiber optic system and community
center; and general government operations, including administration, finance/accounting, information
systems, community information, and general government buildings.
The City Council is required to adopt a final budget by late December for the subsequent year. The
budget is prepared by fund, function (e.g. public works), and department (e.g. streets and alleys).
Transfers of appropriations between funds require the approval of the City Council. The legal level of
budgetary control is the department level in the General Fund and fund level in all other funds. Budget
amendments require City Council approval.
FINANCIAL PLANNING AND THE LOCAL ECONOMY
The City is recovering slowly from recent economic woes that have affected other communities in Wright
County and throughout the state of Minnesota. The nuclear power plant provides the City with a relatively
stable tax and employment base. During the economic downturn, new commercial development came to
virtual standstill and today growth remains anemic. However, the City lost very few of its local
businesses, although some reduced their workforce and scaled back operations. The rapid residential
growth starting nearly a decade ago has slowed significantly but the City was not hit with a large number
of foreclosed homes.
In the past, the state of Minnesota has reduced local government aid (LGA) and the market value
homestead credit (MVHC) to cities and counties as a way to balance its own budget. Since the City does
not receive LGA, the City’s finances are relatively insulated from the state’s budget problems. In 2012,
the state eliminated the MVHC and replaced it with a Market Value Exclusion program, which the City
incorporated into its 2013 budget. The new program shifted more of the tax burden to nonresidential
property taxpayers.
-vi-
The economy and housing market has also affected city revenues for building permits. The City issued
1,199 building permits in 2004 with a total valuation of $62,300,360. In 2013, the City issued 659 permits
with a total valuation of $15,821,223. Inquiries, fielded by the Building Department, indicate 2014
residential housing permits (new) will likely surpass 2013 totals.
Fortunately, the City does not rely on the state as a major funding source (LGA). In addition, the City has
budgeted conservatively over the years, resulting in very modest growth in the property tax levy. To assist
external stakeholders, the City is exploring various ways to better represent its financial position, such as
the elimination of all interfund loans/receivables in 2012. Other initiatives include consolidating funds
with similar purposes, distributing unallocated expenses and aggregating similar costs for distribution as
single amounts to each budget unit (IT Services – Internal Services Fund) in 2013.
MAJOR INITIATIVES
The City has two major ongoing initiatives and one new initiative for 2013. The first ongoing initiative is
the revitalization of its historic downtown. The downtown is the oldest part of the City and many of the
buildings are in need of maintenance. In addition, the amount of traffic on State Highway 25 and
County Road 75 makes both vehicle and pedestrian traffic difficult to move from one area of the
downtown to another. Because of these issues, a number of the store fronts are unoccupied. To address
these issues, the City completed an Embracing Downtown Monticello initiative with the goal to identify
needed improvements and enhancements, which will once again make the downtown area a vibrant
shopping and resident destination. The challenge moving forward will be the implementation of the plan
and creating development opportunities within the downtown area for new and existing businesses.
The other ongoing initiative is the joint purchase with Wright County of Bertram Chain of Lakes
properties. The City and Wright County have already acquired 750 acres of the 1,200 acre site. The
1,200 acre site includes four pristine lakes and woodlands, which when purchased will become a regional
park. Wright County and the City have obtained matching grant funds from the state to purchase
additional acreage in 2014.
INTERNAL CONTROL
The management of the City is responsible for establishing and maintaining internal control designed to
ensure that the assets of the City are protected from loss, theft, or misuse and that adequate accounting
data is compiled to allow for the preparation of financial statements in conformity with accounting
principles generally accepted in the United States of America. The City’s internal controls are designed to
provide reasonable, but not absolute assurance that these objectives are met. The concept of reasonable
assurance recognizes that: 1) the cost of a control should not exceed the benefits likely to be derived, and
2) the valuation of cost and benefit requires estimates and judgments by management. The City’s internal
controls are subject to periodic evaluation by management and the Finance Department staff of the City.
BUDGETING CONTROLS
In addition, the City maintains budgetary controls. The objective of these budgetary controls is to assure
compliance with legal provisions embodied in the annual appropriated budget approved by the City
Council. Activities of the General Fund are included in the annual appropriated budget. The level of
budgetary control (that is, the level at which expenditures cannot legally exceed the appropriated amount)
is established by department within the General Fund. The City Council also adopts a five-year Capital
Improvement Program as a financial planning document for its capital project and enterprise 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.
-vii-
ACKNOWLEDGEMENTS
The Government Finance Officers Association of the United States and Canada (GFOA) awarded a
Certificate of Achievement for Excellence in Financial Reporting to the City for its CAFR for the fiscal
year ended December 31, 2012. This was the third year that the City has achieved this prestigious award.
In order to be awarded a Certificate of Achievement, the City had to publish an easily readable and
efficiently organized CAFR. 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. We believe that our current CAFR
continues to meet the Certificate of Achievement Program’s requirements and we are submitting it to the
GFOA to determine its eligibility for another certificate.
The 2013 CAFR meets the highest professional standards and was prepared in a timely and cost effective
manner. The preparation of this report would not have been possible without the efficient and dedicated
service of the entire staff of the finance department, especially Assistant Finance Director,
Angie McIntire, and through the helpful guidance and assistance from our auditing firm, MMKR. I wish
to express my appreciation to all members of the department who assisted and contributed to the
preparation of this report. Credit also must be given to the Mayor, City Council, and City Administrator
for their unfailing support for maintaining the highest standards of professionalism in the management of
the City’s finances.
Respectfully submitted,
Wayne W. Oberg, MBA, CPA
Finance Director
FINANCIAL SECTION
-1-
INDEPENDENT AUDITOR’S REPORT
To the City Council and Management
City of Monticello, Minnesota
REPORT ON THE FINANCIAL STATEMENTS
We have audited the financial statements of the governmental activities, the business-type activities, each
major fund, and the aggregate remaining fund information of the City of Monticello, Minnesota (the City)
as of and for the year ended December 31, 2013, and the related notes to the financial statements, which
collectively comprise the City’s basic financial statements as listed in the table of contents.
MANAGEMENT’S RESPONSIBILITY 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.
AUDITOR’S RESPONSIBILITY
Our responsibility is to express opinions on these financial statements based on our audit. 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. Those standards require that we plan and perform the audit to
obtain reasonable assurance about whether the financial statements are free from material misstatement.
An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in
the financial statements. The procedures selected depend on the auditor’s judgment, including the
assessment of the risks of material misstatement of the financial statements, whether due to fraud or error.
In making those risk assessments, the auditor considers internal control relevant to the City’s preparation
and fair presentation of the financial statements 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, we express no such opinion. An audit also includes evaluating the
appropriateness of accounting policies used and the reasonableness of significant accounting estimates
made by management, as well as evaluating the overall presentation of the financial statements.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for
our audit opinions.
(continued)
-1-
-2-
OPINIONS
In our opinion, the financial statements referred to on the previous page present fairly, in all material
respects, the respective financial position of the governmental activities, the business-type activities, each
major fund, and the aggregate remaining fund information of the City as of December 31, 2013, 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.
CHANGE IN ACCOUNTING PRINCIPLE
As described in Note 1 of the notes to basic financial statements, in 2013 the City adopted new
accounting guidance, Governmental Accounting Standards Board (GASB) Statement No. 65, Items
Previously Reported as Assets and Liabilities. Our opinion is not modified with respect to this matter.
EMPHASIS OF MATTER
As discussed in Note 12 of the notes to basic financial statements, during the year ended December 31,
2012, the City technically defaulted on the outstanding Monticello Telecommunications Revenue Bonds,
Series 2008 due to lack of payment of a regularly scheduled interest payment on this issue. Our opinion is
not modified with respect to this matter.
OTHER MATTERS
Required Supplementary Information
Accounting principles generally accepted in the United States of America require that the Management’s
Discussion and Analysis, the Schedules of Funding Progress, and the Budgetary Comparison Schedules,
as listed in the table of contents, be presented to supplement the basic financial statements. Such
information, although not a part of the basic financial statements, is required by the GASB 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 required
supplementary information in accordance with auditing standards generally accepted in the United States
of America, which consisted of inquiries of management about the methods of preparing the information
and comparing the information for consistency with management’s responses to our inquiries, the basic
financial statements, and other knowledge we obtained during our audit of the basic financial statements.
We do not express an opinion or provide any assurance on the information because the limited procedures
do not provide us with sufficient evidence to express an opinion or provide any assurance.
Other 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 introductory section, the supplemental information,
and the statistical section, as listed in the table of contents, are presented for purposes of additional
analysis and are not required parts of the basic financial statements.
The supplemental 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.
Such 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, the combining nonmajor
fund statements are fairly stated, in all material respects, in relation to the basic financial statements as a
whole.
(continued)
-3-
The introductory and statistical sections have not been subjected to the auditing procedures applied in the
audit of the basic financial statements and, accordingly, we do not express an opinion or provide any
assurance on them.
OTHER REPORTING REQUIRED BY GOVERNMENT AUDITING STANDARDS
In accordance with Government Auditing Standards, we have also issued our report dated June 27, 2014
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, grant agreements, and other matters.
The purpose of that report is 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 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.
Minneapolis, Minnesota
June 27, 2014
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CITY OF MONTICELLO
Management’s Discussion and Analysis
Year Ended December 31, 2013
-4-
As management of the City of Monticello, Minnesota (the City), we offer the readers of these financial
statements this narrative overview and analysis of the City’s financial activities for the fiscal year ended
December 31, 2013. The data for fiscal 2012 in this document has been restated as a result of a change in
fund structure, change in accounting principle, and prior period adjustment all reported in fiscal 2013.
FINANCIAL HIGHLIGHTS
The assets of the City exceeded its liabilities at year-end by $102,834,596 (net position). Of this amount,
$19,950,937 (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 $23,152,201, a decrease of $12,288,444. Nonspendable, restricted, committed, and assigned
uses of fund balance totaled $19,495,738, leaving an unassigned fund balance of $3,656,463.
At the end of the current fiscal year, unassigned fund balance for the General Fund was $3,656,463, or
56.9 percent, of total General Fund expenditures for 2013. The City targets 45 percent of next year’s
expenditure budget as the optimum fund balance level, providing a reserve for cash flow during the first
six months of each subsequent year until property tax receipts are released from the county treasurer’s
office and distributed to the local levels of government. The state auditor recommends that local
governments maintain an unrestricted fund balance of approximately 35–50 percent of operating revenues
or no less than five months of operating expenditures for the General Fund. The General Fund’s heavy
dependence on property tax revenues validates the 45 percent target. (Source: Minnesota Office of the
State Auditor: Fund Balance Reporting and Governmental Fund Type Definitions, based on
Governmental Accounting Standards Board (GASB) Statement No. 54, 2010–1003 Revised July 2012).
The City’s total long-term liabilities decreased by $12,988,974 (19.6 percent) during 2013. Principal
payments made on outstanding debt totaled $5,435,000. Refunding payments made on outstanding debt
totaled $10,690,000. The City issued 2013 G.O. Certificates of Indebtedness, Series 2013A in the amount
of $500,000 and G.O. Wastewater Treatment Bonds, Series 2013B for $3,000,000.
OVERVIEW OF THE FINANCIAL STATEMENTS
Management’s Discussion and Analysis (MD&A) is intended to serve as an introduction to the City’s
basic financial statements, which are comprised of three components: 1) government-wide financial
statements, 2) fund financial statements, and 3) notes to basic financial statements. This report also
contains other supplementary information in addition to the basic financial statements.
-5-
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 similar to private sector
businesses.
The Statement of Net Position presents information on all of the City’s assets and liabilities, with the
difference between the two 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).
Both of the 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, culture and recreation, and economic development. Business-type activities
include water, sewage, liquor, deputy registrar, and fiber optics activities.
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 functions, in essence, as a department of the City, to provide redevelopment assistance through the
administration of various programs. Therefore, the EDA has been included as an integral part of the
City’s financial statements.
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. All of the funds of the City can be divided into two categories: governmental funds and
proprietary funds.
COMPONENTS OF
THE COMPREHENSIVE ANNUAL 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
-6-
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 Balances for the General Fund, Community Center Special Revenue Fund, EDA
Special Revenue Fund, Debt Service Fund, Capital Outlay Revolving Capital Projects Fund, Sanitary
Sewer Access Capital Projects Fund, and Capital Projects Fund, all of which are considered to be 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 elsewhere in this report.
The City adopts an annual budget for its General Fund and major special revenue funds. A budgetary
comparison schedule has been provided for the General Fund and major special revenue funds to
demonstrate compliance with the adopted budgets.
Proprietary Funds – The City maintains two different 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 five enterprise funds which are considered proprietary funds. Enterprise
funds are used to report the same functions presented as business-type activities in the government-wide
financial statements. The City uses enterprise funds to account for its water and sewage service
operations, liquor sales operation, deputy registrar, and fiber optics operation. Internal service funds are
an accounting device used to accumulate and allocate costs internally amount the City’s various
functions. The City uses internal service funds to account for information technology (IT) services and
central equipment services. 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.
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.
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.
Other Information – Additional information on nonmajor funds can be found in the supplemental
information section of this report.
-7-
GOVERNMENT-WIDE FINANCIAL ANALYSIS
City of Monticello’s Net Position
20132012, as Restated20132012, as Restated20132012, as Restated
Current and other assets33,703,304$ 51,124,570$ 13,326,965$ 12,274,504$ 47,030,269$ 63,399,074$
Capital assets66,933,820 69,058,542 46,906,128 46,357,019 113,839,948 115,415,561
Total assets100,637,124 120,183,112 60,233,093 58,631,523 160,870,217 178,814,635
Long-term liabilities 23,575,940 39,551,731 29,670,082 26,683,265 53,246,022 66,234,996
Other liabilities1,187,058 1,647,574 3,602,541 1,534,702 4,789,599 3,182,276
Total liabilities24,762,998 41,199,305 33,272,623 28,217,967 58,035,621 69,417,272
Net position
Net investment in
capital assets44,268,757 40,868,506 20,496,832 22,687,306 64,765,589 63,555,812
Restricted18,118,070 21,513,894 – – 18,118,070 21,513,894
Unrestricted13,487,299 16,601,407 6,463,638 7,726,250 19,950,937 24,327,657
Total net position75,874,126$ 78,983,807$ 26,960,470$ 30,413,556$ 102,834,596$ 109,397,363$
Governmental ActivitiesBusiness-Type ActivitiesTotal
In 2013, current and other assets are lower than 2012, mainly due to the use of restricted assets for the
payment of refunded debt. Capital assets are lower from annual depreciation on assets. Other liability
increases are from additional accrued interest on debt the City has technically defaulted on.
As noted earlier, net position may serve over time as a useful indicator of a government’s financial
position. The City’s assets exceeded its liabilities by $102,834,596 at the end of 2013.
A portion of the City’s net position (63.0 percent) reflects its investment in capital assets (e.g. land,
buildings, machinery and equipment, and infrastructure) less any related outstanding debt used to acquire
those assets. The City uses these capital assets to provide services to citizens; consequently, these assets
are not available for future spending. Although the City’s investment in its capital assets is reported net of
related debt, it should be noted that the resources needed to repay this debt must be provided from other
resources, since the capital assets themselves cannot be used to liquidate these liabilities.
A portion of the City’s net position (19.4 percent) reflects its unrestricted net assets which may be used to
meet the City’s ongoing obligations to citizens and creditors.
At the end of 2013, the City was able to report positive balances in all three categories of net position, both
for the government as a whole and for its separate governmental and business-type activities.
Governmental Activities – Total net position in the City’s governmental activities decreased due to the
adjustment for unrealized loss on marking investments to market value at year-end in accordance with
accounting standards of the GASB.
Business-Type Activities – The shifts in net investment in capital assets and unrestricted net position in
the City’s business-type activities during 2013 are mainly related to depreciation on capital assets.
-8-
City of Monticello’s Changes in Net Position
20132012, as Restated20132012, as Restated 20132012, as Restated
Revenues
Program revenues
Charges for services2,178,816$ 1,930,655$ 6,577,342$ 6,573,467$ 8,756,158$ 8,504,122$
Operating grants and contributions293,710 252,784 – – 293,710 252,784
Capital grants and contributions1,079,738 1,841,915 – – 1,079,738 1,841,915
General revenues
Property taxes8,927,164 8,746,348 – – 8,927,164 8,746,348
Franchise taxes320,640 339,518 – – 320,640 339,518
General grants and aids65,228 38,618 – – 65,228 38,618
Investment earnings(189,128) 756,603 (117,175) 275,708 (306,303) 1,032,311
Gain on sale of assets3,885 11,575 – – 3,885 11,575
Other 489,782 540,247 65,468 100,712 555,250 640,959
Total revenues13,169,835 14,458,263 6,525,635 6,949,887 19,695,470 21,408,150
Expenses
General government 1,623,727 1,876,836 – – 1,623,727 1,876,836
Public safety 1,884,981 1,819,378 – – 1,884,981 1,819,378
Public works5,163,461 5,045,729 – – 5,163,461 5,045,729
Sanitation487,268 500,037 – – 487,268 500,037
Culture and recreation2,875,260 2,693,598 – – 2,875,260 2,693,598
Economic development1,005,813 803,594 – – 1,005,813 803,594
Interest and fiscal charges235,265 1,269,183 – – 235,265 1,269,183
Water – – 1,009,600 1,092,320 1,009,600 1,092,320
Sewage – – 2,466,660 2,480,657 2,466,660 2,480,657
Liquor – – 689,559 662,002 689,559 662,002
Deputy registrar – – 293,531 253,031 293,531 253,031
Fiber optics – – 5,240,871 5,228,428 5,240,871 5,228,428
Total expenses13,275,775 14,008,355 9,700,221 9,716,438 22,975,996 23,724,793
Increase in net position
before transfers(105,940) 449,908 (3,174,586) (2,766,551) (3,280,526) (2,316,643)
Transfers278,500 (2,095,489) (278,500) 2,095,489 – –
Change in net position172,560 (1,645,581) (3,453,086) (671,062) (3,280,526) (2,316,643)
Net position –
Beginning of year, as previously reported78,983,807 80,863,181 30,413,556 31,574,264 109,397,363 112,437,445
Prior period adjustment(3,282,241) – – – (3,282,241) –
Change in accounting principle – (233,793) – (489,646) – (723,439)
Beginning of year, as restated75,701,566 80,629,388 30,413,556 31,084,618 106,115,122 111,714,006
Net position – end of year75,874,126$ 78,983,807$ 26,960,470$ 30,413,556$ 102,834,596$ 109,397,363$
TotalGovernmental ActivitiesBusiness-Type Activities
The City’s net position decreased in fiscal 2013 by $3,280,526. This decrease was the result of continued
declining operations of the City’s Fiber Optics Fund in 2013, which includes interest expense of $1,936,848
in this fund.
In fiscal 2013, the City reported a change in accounting principle for the implementation of GASB
Statement No. 65, which impacted the January 1, 2012 balance by $233,793 for governmental funds and
$489,646 for enterprise funds.
During the year ended December 31, 2013, the City recorded a prior period adjustment to the government
activities to adjust special assessment receivable due to the recording of duplicate special assessments in
prior years and special assessments recorded as a receivable in prior years for projects that were never
assessed to the property owners by the City. The net effect on the beginning net position as of January 1,
2012, was $3,282,241.
-9-
GOVERNMENTAL ACTIVITIES – REVENUES
Revenues by Source – Governmental Activities
Revenues for the City’s governmental activities decreased by $1,288,428. The major components of this
decrease are explained as follows:
Capital grants and contributions decreased by $762,177 from special assessments to property
owners for their share of projects.
Investment earnings decreased by $945,731. This decrease was caused by the unrealized loss on
marking investments to market value at year-end in accordance with GASB standards.
Expenses – City expenses for governmental activities decreased by $732,580, or 5.2 percent. This decrease
is primarily due to decreases in general government. Interest and fiscal charges were lower in fiscal 2013
mainly from refunding bonds.
General Grants and
Aids
< 1%
Charges for Services
17%
Investment Earnings
(1%)
Operating Grants and
Contributions
2%
Other
4%
Capital Grants and
Contributions
8%
Franchise Taxes
2%
Property Taxes
68%
-10-
BUSINESS-TYPE ACTIVITIES
Revenues by Source – Business-Type Activities
Business-type activities decreased the City’s net position by $3,453,086. The rates for each city utility
service operated as enterprise funds are reviewed annually and adjusted by City Council action. This assures
that operating revenues are independently sufficient to cover their own operating expenses and provide for
their own capital equipment replacement needs. Capital grants and contributions may be required for future
facility replacement needs as current and future projected rates may be insufficient for their ultimate
replacement.
Compared with the prior year, business-type activity investment earnings decreased because of the
unrealized loss on marking investments to market value at year-end
Expenses – Expenses across all five enterprise funds were relatively stable when compared with the prior
year. Declining personal service costs, especially in the Fiber Optics Fund, is the leading factor in the
decrease of overall business-type expenses. However, fluctuations in the other expense categories muted
the impact of this decline. Restructuring in Fiber Optics Fund operations lead to a decrease in staffing. In
some cases, staff reductions were at least partially offset by increases in professional services.
Charges for
Services
101%
Other
1%
Investment
Earnings
(2%)
-11-
FINANCIAL ANALYSIS OF THE GOVERNMENT’S FUNDS
As noted earlier, the City uses fund accounting to ensure and demonstrate compliance with finance-related
legal requirements.
Governmental Funds – The focus of the City’s governmental funds is to provide information on near-term
receipts, uses, and balances of spendable resources. Such information is useful in assessing the City’s
financing requirements. In particular, unassigned fund balance may serve as a useful measure of a
government’s net resources available for spending at the end of the fiscal year.
As of the end of the current fiscal year, the City’s governmental funds reported combined ending fund
balances of $23,152,201, a decrease of $12,288,444. Of this total amount, $3,656,463 is unassigned fund
balance. The remainder of the fund balance is nonspendable, restricted, or assigned for a variety of
purposes.
The City’s General Fund balance increased $436,056 during the current fiscal year. Each of the main
activities of the General Fund were completed efficiently and effectively as authorized within the adopted
budget, except general government and public safety by $6,705 and $22,727, respectively.
Community Center Special Revenue Fund – The increase in the Community Center Special Revenue
Fund balance was the result of an increase in memberships and transfers from other funds in excess of
Natatorium Project costs.
EDA Special Revenue Fund – The EDA Special Revenue Fund balance decreased due to an increase in
developer payments and expenses related to the relocation of a business purchased as part of the
Montgomery Farms property in the prior year.
Debt Service Fund – The main revenue source is the collection of special assessments, with the annual
principal and interest on debt as the main expenditure. Reserves decreased by $10,202,817 due to
scheduled payment on the 2005 Improvements Bonds refunded during fiscal 2013 for $10,690,000.
Capital Outlay Revolving Capital Projects Fund – The decrease in fund balance of $1,945,695,
reducing fund balance to zero, was due to the transfer of land held for resale to the Capital Projects Fund
of $1,137,888 and transfers to the Capital Equipment Internal Service Fund and the Fiber Optics Fund.
Sanitary Sewer Access Capital Projects Fund – The Sanitary Sewer Access Capital Projects Fund
balance decreased by $1,866,876, reducing the fund balance to zero, due to the transfer of funds for the
Sanitary Sewer Access Capital Projects Fund’s share of debt service payments. Future access charges will
be credited to the Sewage Fund.
Capital Projects Fund – The Capital Projects Fund’s resources increased $1,568,091 in the current year,
primarily due to the transfer of land held for resale from the Capital Outlay Revolving Capital Projects
Fund totaling $1,137,888.
Proprietary Funds – The City’s proprietary funds provide the same type of information found in the
government-wide financial statements, but in more detail.
Water Fund – Net position decreased $242,502 due to a 10 percent increase in rates and a decrease in
consumption during the year. In addition, the Water Fund transferred $413,500 to other funds.
-12-
Sewage Fund – Net position decreased $508,012. The Sewage Fund had an operating loss of $377,206.
The depreciable cost of assets is not fully offset by the sewage rates and, therefore, the Sewage Fund had
an operating loss in fiscal 2013.
Liquor Fund – The City’s liquor operations ended the year with a decrease in net position. The City’s
Liquor Fund had operating net income of $629,014 and transferred $650,000 to other funds.
Fiber Optics Fund – In 2007, the City started its Fiber Optics Project, which installed a fiber optics
system to every premise in the City to provide customers with phone, high-speed internet, and cable
television services as a self-supporting system with competitive pricing. The system began operations in
the spring of 2010 and system construction was essentially complete by the end of 2011. As of
December 31, 2013, the Fiber Optics Fund had bonds payable of $26,445,000. In July 2012, The City
went into technical default on these bonds when it did not make a monthly deposit into a debt service
account as required by bond indenture. Subsequently, the City did not make any scheduled fiscal 2013
principal and interest payments on the bonds.
Deputy Registrar Fund – The City’s deputy registrar operations ended the year with an increase in net
position. The City’s Deputy Registrar Fund had operating income of $162,246 and transferred $75,000 to
the Community Center Fund.
GENERAL FUND BUDGETARY HIGHLIGHTS
General Fund revenues for 2013 were over budget by $161,977. Property taxes collected were $45,602
above budget, largely the result of delinquent tax collections. In addition, miscellaneous revenue was
$133,142 over budget mostly due to insurance dividends.
General Fund expenditures for 2013 were $286,079 under budget. Conservative council efforts and
vacant positions contributed to the positive budget variance.
CAPITAL ASSETS AND DEBT ADMINISTRATION
Capital Assets – The City’s investment in capital assets for its governmental and business-type activities
amounts to $113,839,948 as of December 31, 2013, net of accumulated depreciation. This investment in
capital assets includes fire and public works equipment, parks and recreation facilities, buildings, roads,
sewage, water, and storm sewer utilities. This amount represents a net decrease (including additions and
deductions) of $1,575,613 over last year.
-13-
City of Monticello’s Capital Assets
20132012, as Restated20132012, as Restated20132012, as Restated
Land11,919,531$ 11,298,862$ 1,197,945$ 1,197,945$ 13,117,476$ 12,496,807$
Construction in progress3,492,384 3,157,351 2,407,995 79,019 5,900,379 3,236,370
Buildings 13,709,653 13,709,653 6,820,979 6,820,979 20,530,632 20,530,632
Improvements other
than buildings5,692,145 5,698,145 20,160,525 20,160,525 25,852,670 25,858,670
Machinery, equipment,
furniture, and vehicles4,707,040 4,682,016 2,241,362 2,227,501 6,948,402 6,909,517
Infrastructure68,659,431 67,866,415 50,178,186 49,888,186 118,837,617 117,754,601
Less accumulated
depreciation(41,246,364) (37,353,900) (36,100,864) (34,017,136) (77,347,228) (71,371,036)
Net total66,933,820$ 69,058,542$ 46,906,128$ 46,357,019$ 113,839,948$ 115,415,561$
Governmental ActivitiesBusiness-Type ActivitiesTotal
Additional information on the City’s capital assets is located in Note 3 of the notes to basic financial
statements.
Long-Term Debt – At the end of 2013, the City has total bonds outstanding in the amount of
$52,861,000, of which $13,010,000 are special assessment bonds outstanding. The City has pledged
revenue streams from general property taxes; the community center; water and sewer utilities; fiber optics
revenues; and sewer, water, and storm sewer access funds for the principal and interest payments due on
these bonds.
City of Monticello’s Outstanding Bonds
201320122013201220132012
General obligation bonds7,506,653$ 8,877,403$ 3,479,347$ 568,597$ 10,986,000$ 9,446,000$
Certificate of indebtedness445,000 – – – 445,000 –
Special assessment bonds13,010,000 26,625,000 – – 13,010,000 26,625,000
Revenue bonds1,975,000 2,970,000 26,445,000 26,445,000 28,420,000 29,415,000
Total22,936,653$ 38,472,403$ 29,924,347$ 27,013,597$ 52,861,000$ 65,486,000$
Total
Governmental
Activities
Business-Type
Activities
The City’s total outstanding bonds decreased by $12,625,000 during 2013.
State statutes limit the amount of general obligation bonds a government entity may issue to 3 percent of
its taxable market value. The current debt limit is $29,471,296, which is significantly in excess of the
City’s outstanding net general obligation bonds of $6,200,000, which is subject to the limitation.
Additional information on the City’s debt is located in Note 4 of the notes to basic financial statements.
-14-
ECONOMIC FACTORS AND NEXT YEAR’S BUDGET
The City considered many factors when setting the fiscal year 2013 budget, rates, and fees. The City
Council decided to set the tax levy at a level that would maintain current services at prior year levels.
Utility rates and fees were set at a level to cover operating expenses, ongoing capital costs, and current
and future debt service. Further, the changes to the levy and service charges also maintain the City’s
competitive advantage with surrounding cities and a vast majority of the other cities throughout the state.
The 2013 $7.9 million levy is $50,000, or 0.6 percent, more than the 2012 levy. The 2014 $8.15 million
levy is $250,000, or 3.2 percent, greater than the 2013 levy. Both levies are consistent with the City
Council’s conservative approach to using tax dollars for operations. The 2014 levy included only $12,000
more for operating expenses and the remainder is dedicated for debt service.
Budgeted 2013 revenues for building permits and other related charges were surpassed by a modest
uptick in construction. For 2014, the upward trend is expected to continue but budgeted permit revenue
was estimated to be slightly above the 2012 actual amount. In 2013, water and sewage rates were
budgeted to increase by 10 percent. However, weather-related changes in consumption reduced the
impact on overall revenues. No utility revenue increases were budgeted for 2014.
REQUESTS FOR INFORMATION
The City’s CAFR is designed to provide our citizens, customers, and creditors with a general overview of
the City’s finances and to show the City’s accountability for the money it receives. If you have questions
about this CAFR or need additional financial information, contact the City of Monticello, Finance
Department at 505 Walnut Street, Suite No. 1, Monticello, Minnesota 55362.
(This page left blank intentionally)
GOVERNMENT-WIDE FINANCIAL STATEMENTS
GovernmentalBusiness-Type
ActivitiesActivitiesTotals
Assets
Cash and investments 19,080,644$ 9,327,607$ 28,408,251$
Receivables
Current taxes 29,663 – 29,663
Delinquent taxes56,933 – 56,933
Current special assessments1,048,165 154,040 1,202,205
Deferred special assessments5,326,988 – 5,326,988
Delinquent special assessments1,386,481 30,001 1,416,482
Accounts 366,704 934,013 1,300,717
Interest 127,003 – 127,003
Due from other governmental units474 – 474
Internal balances(1,953) 1,953 –
Notes receivable1,117,544 – 1,117,544
Land held for resale5,027,044 – 5,027,044
Inventory – 508,918 508,918
Prepaid items 137,614 81,790 219,404
Restricted assets
Cash and investments held for fiber optics activity– 2,288,643 2,288,643
Capital assets
Land and construction in progress15,411,915 3,605,940 19,017,855
Depreciable assets, net of accumulated depreciation51,521,905 43,300,188 94,822,093
Total capital assets, net of depreciation66,933,820 46,906,128 113,839,948
Total assets 100,637,124$ 60,233,093$ 160,870,217$
Liabilities
Current liabilities
Accounts and contracts payable495,101$ 669,941$ 1,165,042$
Accrued interest payable251,292 2,806,245 3,057,537
Other accrued liabilities208,202 1,184 209,386
Due to other governmental units12,408 125,171 137,579
Unearned revenue78,379 – 78,379
Escrow deposits141,676 – 141,676
Long-term liabilities
Due within one year5,558,836 630,273 6,189,109
Due in more than one year18,017,104 29,039,809 47,056,913
Total long-term liabilities23,575,940 29,670,082 53,246,022
Total liabilities24,762,998 33,272,623 58,035,621
Net position
Net investment in capital assets44,268,757 20,496,832 64,765,589
Restricted for debt service9,660,316 – 9,660,316
Restricted for economic development7,114,435 – 7,114,435
Restricted for perpetual care14,033 – 14,033
Restricted for tax increment1,329,286 – 1,329,286
Unrestricted13,487,299 6,463,638 19,950,937
Total net position75,874,126 26,960,470 102,834,596
Total liabilities and net position 100,637,124$ 60,233,093$ 160,870,217$
See notes to basic financial statements
CITY OF MONTICELLO
Statement of Net Position
as of December 31, 2013
-15-
Program Revenues
OperatingCapital
Charges forGrants andGrants andGovernmentalBusiness-Type
Functions/ProgramsExpensesServicesContributionsContributionsActivitiesActivitiesTotals
Governmental activities
General government1,623,727$ 147,244$ –$ –$ (1,476,483)$ –$ (1,476,483)$
Public safety1,884,981 163,366 186,537 – (1,535,078) – (1,535,078)
Public works5,163,461 544,404 107,173 1,079,738 (3,432,146) – (3,432,146)
Sanitation487,268 16,653 – – (470,615) – (470,615)
Culture and recreation2,875,260 1,307,149 – – (1,568,111) – (1,568,111)
Economic development1,005,813 – – – (1,005,813) – (1,005,813)
Interest and fiscal charges235,265 – – – (235,265) – (235,265)
Total governmental
activities13,275,775 2,178,816 293,710 1,079,738 (9,723,511) – (9,723,511)
Business-type activities
Water1,009,600 1,214,570 – – – 204,970 204,970
Sewage2,466,660 1,981,491 – – – (485,169) (485,169)
Liquor689,559 1,318,276 – – – 628,717 628,717
Deputy registrar293,531 456,285 – – – 162,754 162,754
Fiber optics5,240,871 1,606,720 – – – (3,634,151) (3,634,151)
Total business-type
activities9,700,221 6,577,342 – – – (3,122,879) (3,122,879)
Total governmental
and business-type
activities22,975,996$ 8,756,158$ 293,710$ 1,079,738$ (9,723,511) (3,122,879) (12,846,390)
General revenues
Property taxes8,927,164 – 8,927,164
Franchise taxes320,640 – 320,640
General aids and grants – unrestricted65,228 – 65,228
Investment earnings (net of market value
adjustment)(189,128) (117,175) (306,303)
Other general revenues489,782 65,468 555,250
Gain on sale of assets3,885 – 3,885
Transfers278,500 (278,500) –
Total general revenues and transfers9,896,071 (330,207) 9,565,864
Change in net position172,560 (3,453,086) (3,280,526)
Net position –
Beginning of year, as previously reported78,983,807 30,413,556 109,397,363
Prior period adjustment(3,282,241) – (3,282,241)
Beginning of year, as restated75,701,566 30,413,556 106,115,122
Net position – end of year 75,874,126$26,960,470$ 102,834,596$
See notes to basic financial statements
CITY OF MONTICELLO
Statement of Activities
Year Ended December 31, 2013
Changes in Net Position
Net (Expense) Revenue and
-16-
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FUND FINANCIAL STATEMENTS
Economic
CommunityDevelopment
GeneralCenterAuthorityDebt Service
Assets
Cash and investments4,020,940$ 296,580$ 3,866,627$ 2,522,387$
Receivables
Current taxes21,365 4,140 – 3,992
Delinquent taxes 39,080 8,254 1,204 8,395
Current special assessments20,696 – – 813,625
Deferred special assessments– – – 4,550,894
Delinquent special assessments114 – – 1,188,105
Accounts65,915 – – 223,700
Accrued interest127,003 – – –
Due from other governmental units474 – – –
Notes receivable141,124 – 98,776 600,000
Land held for resale– – 3,224,756 –
Prepaid items116,976 16,886 2,074 –
Total assets4,553,687$ 325,860$ 7,193,437$ 9,911,098$
Liabilities
Accounts and contracts payable233,667$ 32,827$ 66,928$ –$
Other accrued liabilities208,202 – – –
Due to other governmental units5,689 6,719 – –
Unearned revenue– 6,856– –
Escrow deposits131,676 – 10,000 –
Total liabilities579,234 46,402 76,928 –
Deferred inflows of resources
Unavailable revenue – property taxes39,0808,2541,2048,395
Unavailable revenue – special assessments20,810– – 6,552,624
Unavailable revenue – notes receivable– – – 600,000
Total deferred inflows of resources59,890 8,254 1,204 7,161,019
Fund balances
Nonspendable258,10016,8862,074 –
Restricted– – 7,113,231 2,750,079
Assigned– 254,318 – –
Unassigned3,656,463 – – –
Total fund balances3,914,563 271,204 7,115,305 2,750,079
Total liabilities, deferred inflows of
resources, and fund balances4,553,687$ 325,860$ 7,193,437$ 9,911,098$
See notes to basic financial statements
as of December 31, 2013
CITY OF MONTICELLO
Balance Sheet
Governmental Funds
Special Revenue Funds
-17-
Capital Outlay Sanitary
RevolvingSewer AccessCapital ProjectsNonmajor FundsTotals
–$ –$ 1,894,052$ 5,546,412$ 18,146,998$
– – – 166 29,663
– – – – 56,933
– – 213,844 – 1,048,165
– – 776,094 – 5,326,988
– – 198,262 – 1,386,481
– – – 77,089 366,704
– – – – 127,003
– – – – 474
– – – 277,644 1,117,544
– – 1,802,288 – 5,027,044
– – – 1,678 137,614
–$ –$ 4,884,540$ 5,902,989$ 32,771,611$
–$ –$ 145,123$ 3,989$ 482,534$
– – – – 208,202
– – – – 12,408
– – 71,523 – 78,379
– – – – 141,676
– – 216,646 3,989 923,199
– – – – 56,933
– – 1,188,200 – 7,761,634
– – – 277,644 877,644
– – 1,188,200 277,644 8,696,211
– – 1,802,2881,678 2,081,026
– – – 1,065,675 10,928,985
– – 1,677,406 4,554,003 6,485,727
– – – – 3,656,463
– – 3,479,694 5,621,356 23,152,201
–$ –$ 4,884,540$ 5,902,989$ 32,771,611$
Capital Projects Funds
-18-
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Total fund balances – governmental funds 23,152,201$
Amounts reported for governmental activities in the Statement of Net Position are different because:
Capitalassetsusedingovernmentalactivitiesarenotfinancialresourcesand,therefore,are
not reported as assets in governmental funds. These assets consist of:
Cost of capital assets108,068,171
Accumulated depreciation(41,234,657)
66,833,514
SomeoftheCity’spropertytaxes,specialassessments,andnotesreceivablewillbe
collectedafteryear-end,butarenotavailablesoonenoughtopayforthecurrentperiod’s
expendituresand,therefore,arereportedasdeferredinflowsofresourcesinthe
governmental funds.8,696,211
Interestonlong-termdebtisnotaccruedingovernmentalfunds,butratherisrecognizedas
anexpenditurewhendue.Accruedinterestforgeneralobligationbondsisincludedinthe
Statement of Net Position.(250,782)
Netotherpost-employmentbenefitobligationspayablereportedintheStatementofNet
Positiondonotrequiretheuseofcurrentfinancialresourcesandarenotreportedas
liabilities in governmental funds until actually due.(255,604)
Long-termliabilitiesthatpertaintogovernmentalfunds,includingbondspayable,arenot
dueandpayableinthecurrentperiodand,therefore,arenotreportedasfundliabilities.All
liabilities, both current and long-term, are reported in the Statement of Net Position:
Bonds payable (22,491,653)
Unamortized bond discounts 214,092
Unamortized bond premiums (287,196)
Compensated absences (310,579)
(22,875,336)
Internalservicefundsareusedbymanagementtochargethecostsofinformation
technologyandvehiclemaintenancetoindividualfunds.Theassetsandliabilitiesofthe
internalservicefundsareincludedingovernmentalactivitiesintheStatementofNet
Internal service net position included in governmental activities 575,875
Add internal service net position allocated to business-type activities (1,953)
573,922
Total net position – governmental activities 75,874,126$
See notes to basic financial statements
CITY OF MONTICELLO
Reconciliation of the Balance Sheet to the
Statement of Net Position
Governmental Funds
as of December 31, 2013
-19-
Economic
CommunityDevelopment
GeneralCenterAuthorityDebt Service
Revenue
Property taxes5,605,102$ 1,181,335$ –$ 1,196,912$
Tax increments– – 965,935 –
Special assessments22,351 – – 1,016,420
Franchise taxes216,500 – – –
Licenses and permits331,711 – – –
Intergovernmental372,631 – – –
Charges for services245,675 1,292,608 25,404 –
Fines1,725 – – –
Investment earnings (net of market value
adjustment)(52,136) (5,287) (3,964) 5,956
Miscellaneous205,387 16,743 278,642 200,000
Total revenue6,948,946 2,485,399 1,266,017 2,419,288
Expenditures
Current
General government1,555,532 – – 4,879
Public safety1,805,434 – – –
Public works1,700,146 – – –
Sanitation505,996 – – –
Culture and recreation853,782 1,616,230 – –
Economic development– – 924,462 –
Capital outlay
Public works– – – –
Culture and recreation– 77,465 – –
Debt service
Principal– – – 5,290,750
Interest and fiscal charges– – – 927,957
Total expenditures6,420,890 1,693,695 924,462 6,223,586
Excess (deficiency) of revenues
over expenditures528,056 791,704 341,555 (3,804,298)
Other financing sources (uses)
Transfers in– 175,000 92,000 4,291,481
Transfers (out)(92,000) (875,000) (779,804) –
Payment on refunded debt– – – (10,690,000)
Proceeds from sale of assets– – – –
Total other financing sources (uses)(92,000) (700,000) (687,804) (6,398,519)
Net change in fund balances436,056 91,704 (346,249) (10,202,817)
Fund balances
Beginning of year3,478,507 179,500 7,461,554 12,952,896
End of year 3,914,563$ 271,204$ 7,115,305$ 2,750,079$
See notes to basic financial statements
Special Revenue Funds
CITY OF MONTICELLO
Statement of Revenue, Expenditures, and Changes in Fund Balances
Governmental Funds
Year Ended December 31, 2013
-20-
Capital OutlaySanitary
RevolvingSewer AccessCapital ProjectsNonmajor FundsTotals
–$ –$ –$ 2,346$ 7,985,695$
– – – – 965,935
– – 1,027,173 – 2,065,944
18,137 – – 86,003 320,640
– – – – 331,711
– – 892,150 – 1,264,781
– 221,584 – 61,648 1,846,919
– – – – 1,725
(10,210) (16,411) (25,202) (75,988) (183,242)
– – – 4 700,776
7,927 205,173 1,894,121 74,013 15,300,884
– – – 16,242 1,576,653
– – – – 1,805,434
– – – 7,430 1,707,576
– – – – 505,996
– – – 2,975 2,472,987
87,499 – – – 1,011,961
– – 1,074,319 – 1,074,319
– – – 205,470 282,935
– – – – 5,290,750
– – – 3,025 930,982
87,499 – 1,074,319 235,142 16,659,593
(79,572) 205,173 819,802 (161,129) (1,358,709)
– – 1,598,289 750,000 6,906,770
(1,878,551) (2,072,049) (850,000) (611,529) (7,158,933)
– – – – (10,690,000)
12,428 – – – 12,428
(1,866,123) (2,072,049) 748,289 138,471 (10,929,735)
(1,945,695) (1,866,876) 1,568,091 (22,658) (12,288,444)
1,945,695 1,866,876 1,911,603 5,644,014 35,440,645
–$ –$ 3,479,694$ 5,621,356$ 23,152,201$
Capital Projects Funds
-21-
(This page left blank intentionally)
Total net change in fund balances – governmental funds(12,288,444)$
Capitaloutlaysarereportedingovernmentalfundsasexpenditures.However,inthe
StatementofActivities,thecostofthoseassetsisallocatedovertheestimateduseful
lives as depreciation expense. This is the amount by which capital assets changed:
Capital outlays1,753,767
Depreciation expense(3,970,252)
(2,216,485)
Againorlossonthedisposalofcapitalassets,includingthedifferencebetweenthe
carryingvalueandanyrelatedsaleproceeds,isincludedinthechangeinnetposition.
However, only the sale proceeds are included in the change in fund balance. (8,543)
Thegovernmentalfundsreportbondproceedsasfinancingsources,whilerepayment
ofbondprincipalisreportedasanexpenditure.IntheStatementofNetPosition,
however,issuingdebtincreaseslong-termliabilitiesanddoesnotaffecttheStatement
of Activities:
Repayment of bond principal15,980,750
Change in accrued interest payable263,596
Amortization of bond premium (discounts)440,985
Change in compensated absences12,435
16,697,766
Netotherpost-employmentbenefitobligationspayablereportedintheStatementof
Activitiesdonotrequiretheuseofcurrentfinancialresourcesandarenotreportedas
expenditures in governmental funds until actually due.(39,941)
Certainrevenues(includingdelinquenttaxesandspecialassessments)areincludedin
thechangeinnetposition,butareexcludedfromthechangeinfundbalancesuntil
they are available to liquidate liabilities of the current period.
Deferred inflows of resources (2,545,715)
Internalservicefundsareused by management tochargethecostsof information
technologyandvehiclemaintenancetoindividualfunds.Thenetrevenue/expenseof
certainactivitiesofinternalservicefundsisreportedwithgovernmentalactivitiesin
the government-wide financial statements.
Internal service fund activity included in governmental activities 575,875
Add back internal service fund activity allocated to business-type activities (1,953)
573,922
Change in net position – governmental activities 172,560$
See notes to basic financial statements
AmountsreportedforgovernmentalactivitiesintheStatementofActivitiesaredifferent
because:
CITY OF MONTICELLO
Year Ended December 31, 2013
Reconciliation of the Statement of
Revenue, Expenditures, and Changes in Fund Balances
to the Statement of Activities
Governmental Activities
-22-
Governmental
Activities
WaterSewageLiquorFiber Optics
Deputy
RegistrarTotalsInternal Service
Assets
Current assets
Cash and investments – unrestricted4,267,193$ 4,328,991$ 306,768$ 202,976$ 221,679$ 9,327,607$ 933,646$
Receivables
Current special assessments154,040 – – – – 154,040 –
Delinquent special assessments30,001 – – – – 30,001 –
Accounts228,473 538,901 – 137,327 32,140 936,841 –
Allowance for uncollectibles– – – (2,828) – (2,828) –
Inventory– – 508,918 – – 508,918 –
Prepaids9,087 20,303 14,438 34,776 3,186 81,790 –
Total current assets4,688,794 4,888,195 830,124 372,251 257,005 11,036,369 933,646
Noncurrent assets
Cash and investments – restricted– – – 2,288,643 – 2,288,643 –
Capital assets
Land 208,143 984,202 5,600 – – 1,197,945 –
Buildings 848,445 4,033,879 770,867 1,167,788 – 6,820,979 –
Furniture and equipment15,695 62,882 70,277 38,155 – 187,009 17,013
Vehicles53,553 531,086 – 78,421 14,264 677,324 –
Machinery and equipment166,267 1,024,572 64,251 121,939 – 1,377,029 95,000
Improvements other than buildings2,392,268 17,635,210 69,350 – 63,697 20,160,525 –
Infrastructure16,477,649 19,924,948 – 13,775,589 – 50,178,186 –
Construction in progress102,706 2,099,078 – 206,211 – 2,407,995 –
20,264,726 46,295,857 980,345 15,388,103 77,961 83,006,992 112,013
Less accumulated depreciation(9,611,780) (24,850,451) (668,633) (942,988) (27,012) (36,100,864) (11,707)
Capital assets, net of depreciation10,652,946 21,445,406 311,712 14,445,115 50,949 46,906,128 100,306
Total noncurrent assets10,652,946 21,445,406 311,712 16,733,758 50,949 49,194,771 100,306
Total assets15,341,740$ 26,333,601$ 1,141,836$ 17,106,009$ 307,954$ 60,231,140$ 1,033,952$
Liabilities
Current liabilities
Accounts and contracts payable73,191$ 240,263$ 75,449$ 280,555$ 483$ 669,941$ 12,567$
Accrued interest payable– 14,350 – 2,791,895 – 2,806,245 510
Other accrued liabilities– – 1,184 – – 1,184 –
Due to other governmental units2,043 – 48,059 7,000 68,069 125,171 –
Bonds payable due within one year– 273,000 – 325,000 – 598,000 60,000
Compensated absences due within one year11,111 – 11,845 5,457 3,860 32,273 –
Total current liabilities86,345 527,613 136,537 3,409,907 72,412 4,232,814 73,077
Long-term liabilities
Bonds payable, net– 3,241,710– 25,724,426 – 28,966,136 385,000
Compensated absences payable34,951 – 26,049 2,182 10,491 73,673 –
Total long-term liabilities34,951 3,241,710 26,049 25,726,608 10,491 29,039,809 385,000
Total liabilities121,296 3,769,323 162,586 29,136,515 82,903 33,272,623 458,077
Net position (deficit)
Net investment in capital assets10,652,946 18,796,893 311,712 (9,315,668) 50,949 20,496,832 5,306
Unrestricted4,567,498 3,767,385 667,538 (2,714,838) 174,102 6,461,685 570,569
Total net position (deficit)15,220,444 22,564,278 979,250 (12,030,506) 225,051 26,958,517 575,875
Total liabilities and net position15,341,740$ 26,333,601$ 1,141,836$ 17,106,009$ 307,954$ 60,231,140$ 1,033,952$
Total net position – enterprise funds26,958,517$
Adjustment to reflect the consolidation of internal
service fund activity related to enterprise funds.1,953
Net position – business-type activities 26,960,470$
See notes to basic financial statements
Business-Type Activities – Enterprise Funds
CITY OF MONTICELLO
Statement of Net Position
Proprietary Funds
as of December 31, 2013
-23-
Governmental
Activities
WaterSewageLiquorFiber Optics
Deputy
Registrar TotalsInternal Service
Sales and cost of sales
Net sales–$ –$ 5,085,924$ –$ –$ 5,085,924$ –$
Cost of sales– – (3,767,648) – – (3,767,648) –
Gross profit– – 1,318,276 – – 1,318,276 –
Operating revenue
Charges for services1,214,570 1,981,491 – 1,606,720 456,285 5,259,066 187,535
Other revenue24,513 25,227 687 14,94299 65,468 23
Total operating revenue1,239,083 2,006,718 687 1,621,662 456,384 5,324,534 187,558
Total gross profit and
operating revenue1,239,083 2,006,718 1,318,963 1,621,662 456,384 6,642,810 187,558
Operating expenses
Personal services212,409 263,020 441,639 445,407 256,835 1,619,310 –
Utilities107,448 30,513 26,973 28,486 3,139 196,559 38,334
Supplies and maintenance83,629 16,056 20,249 167,753 8,600 296,287 7,473
Repairs and maintenance8,399 1 27,259 3,328 744 39,731 280
Depreciation520,014 1,107,508 47,141 410,818 4,842 2,090,323 11,707
Insurance14,062 30,129 17,158 14,676 2,450 78,475 –
Bond settlement charges– – – 642,620 – 642,620 –
Content and access charges– – – 852,645 – 852,645 –
Other services and charges11,618 907,506 12,302 535,578 3,993 1,470,997 39,661
Miscellaneous52,297 29,191 97,228 203,119 13,535 395,370 34,707
Total operating expenses1,009,876 2,383,924 689,949 3,304,430 294,138 7,682,317 132,162
Operating income (loss)229,207 (377,206) 629,014 (1,682,768) 162,246 (1,039,507) 55,396
Nonoperating revenues (expenses)
Investment earnings (net of market value
adjustment)(58,209) (47,797) (8,283) (698) (2,188) (117,175) (5,886)
Interest expense– (83,009) – (1,936,848) – (2,019,857) (4,298)
Total nonoperating revenues
(expenses)(58,209) (130,806) (8,283) (1,937,546) (2,188) (2,137,032) (10,184)
Income (loss) before transfers170,998 (508,012) 620,731 (3,620,314) 160,058 (3,176,539) 45,212
Transfers
Transfer in– – – 860,000– 860,000 530,663
Transfers (out)(413,500) – (650,000) – (75,000) (1,138,500) –
Total transfers(413,500) – (650,000) 860,000 (75,000) (278,500) 530,663
Change in net position(242,502) (508,012) (29,269) (2,760,314) 85,058 (3,455,039) 575,875
Net position (deficit)
Beginning of year, as restated15,462,946 23,072,290 1,008,519 (9,270,192) 139,993 30,413,556 –
End of year 15,220,444$ 22,564,278$ 979,250$ (12,030,506)$225,051$ 26,958,517$ 575,875$
Change in net position – enterprise funds(3,455,039)$
Adjustment to reflect the consolidation of internal
service fund activity related to enterprise funds.1,953
Change in net position – business-type activities (3,453,086)$
See notes to basic financial statements
CITY OF MONTICELLO
Statement of Revenue, Expenses, and Changes in Fund Net Position
Proprietary Funds
Year Ended December 31, 2013
Business-Type Activities – Enterprise Funds
-24-
Governmental
Activities
WaterSewageLiquorFiber Optics
Deputy
RegistrarTotalsInternal Service
Cash flows from operating activities
Cash received from customers1,224,293$ 1,924,836$ 5,086,611$ 1,724,617$ 451,353$ 10,411,710$ –$
Receipts from interfund services provided– – – – – – 187,558
Cash payments to suppliers(245,566) (806,768) (4,014,249) (2,257,626) (26,894) (7,351,103) (107,888)
Cash payments to employees(208,594) (263,020) (430,157) (451,036) (269,046) (1,621,853) –
Net cash flows from operating activities770,133 855,048 642,205 (984,045) 155,413 1,438,754 79,670
Cash flows from noncapital financing activities
Transfers in– – – 860,000 – 860,000 530,663
Transfers (out)(413,500) – (650,000) – (75,000) (1,138,500) –
Net cash flows from noncapital
financing activities(413,500) – (650,000) 860,000 (75,000) (278,500) 530,663
Cash flows from capital and related financing activities
Acquisition and construction of capital assets(318,706) (2,094,059) 1 (226,667) – (2,639,431) (112,013)
Proceeds from issuance of long-term debt– 3,029,783 – – – 3,029,783 500,000
Principal paid on long-term debt– (89,250) – – – (89,250) (55,000)
Interest paid on long-term debt – (79,854) – (150,759) – (230,613) (3,788)
Net cash flows from capital and
related financing activities (318,706) 766,620 1 (377,426) – 70,489 329,199
Cash flows from investing activities
Interest on investments(58,209) (47,797) (8,283) (698) (2,188) (117,175) (5,886)
Net increase (decrease) in cash and cash
equivalents(20,282) 1,573,871 (16,077) (502,169) 78,225 1,113,568 933,646
Cash and cash equivalents
Beginning of year4,287,475 2,755,120 322,845 2,993,788 143,454 10,502,682 –
End of year 4,267,193$ 4,328,991$ 306,768$ 2,491,619$ 221,679$ 11,616,250$ 933,646$
Cash and cash equivalents comprised of
Unrestricted4,267,193$ 4,328,991$ 306,768$ 202,976$ 221,679$ 9,327,607$ 933,646$
Restricted– – – 2,288,643 – 2,288,643 –
Total 4,267,193$ 4,328,991$ 306,768$ 2,491,619$ 221,679$ 11,616,250$ 933,646$
Reconciliation of operating income (loss) to
net cash provided (used) by operating activities
Operating income (loss)229,207$ (377,206)$ 629,014$ (1,682,768)$ 162,246$ (1,039,507)$ 55,396$
Adjustments to reconcile net income (loss) to net
cash provided (used) by operating activities
Depreciation520,014 1,107,508 47,141 410,818 4,842 2,090,323 11,707
Changes in assets and liabilities
(Increase) decrease in accounts receivable, net(9,636) (81,882) – 102,955 (5,031) 6,406 –
(Increase) in special assessments receivable(4,154) – – – – (4,154) –
Decrease in inventory– – 1,827 – – 1,827 –
(Increase) decrease in prepaid expenses4,244 (5,639) (1,888) 63,708 (1,440) 58,985 –
Increase (decrease) in accounts and contracts
payable28,456 212,290 (44,517) 129,760 (549) 325,440 12,567
Increase in accrued expenses– – 107 – – 107 –
Increase (decrease) in due to other governments(813) (23) (854) (2,889) 7,556 2,977 –
(Decrease) in escrow deposits(1,000) – – – – (1,000) –
Increase (decrease) in compensated absences3,815 – 11,375 (5,629) (12,211) (2,650) –
Net cash flows from operating activities 770,133$ 855,048$ 642,205$ (984,045)$ 155,413$ 1,438,754$ 79,670$
Disclosure of noncash transactions
(Negative) market value adjustment (174,043)$ (121,255)$ (17,028)$ 5,328$ (7,293)$ (314,291)$ (14,923)$
See notes to basic financial statements
Statement of Cash Flows
CITY OF MONTICELLO
Proprietary Funds
Year Ended December 31, 2013
Business-Type Activities – Enterprise Funds
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CITY OF MONTICELLO
Notes to Basic Financial Statements
December 31, 2013
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NOTE 1 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
A. Organization
The financial statements of the City of Monticello, Minnesota (the City) have been prepared in
conformity with accounting principles generally accepted in the United States of America as applied to
governmental units. The Governmental Accounting Standards Board (GASB) is the accepted standard
setting body for establishing governmental accounting and financial reporting principles. The significant
accounting policies of the City are described as follows:
B. Reporting Entity
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. The 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 fiscally dependent upon the City, and its
governing body consists of City Council members. Therefore, the EDA is included as a component unit
of the City. The EDA’s financial data has been blended with that of the City (i.e. reported as though its
funds were funds of the City) and reported as a special revenue fund.
C. Government-Wide Financial Statement Presentation
The government-wide financial statements (Statement of Net Position and Statement of Activities)
display information about the reporting government as a whole. These statements include all of the
financial activities of the City. 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 or segment. 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; 2) operating grants and contributions; and 3) capital grants and contributions, including special
assessments that are restricted to meeting the operational or capital requirements of a particular function
or segment. Taxes and other internally directed revenues are reported as general revenues.
The government-wide financial statements are reported using the economic resources measurement focus
and the accrual basis of accounting. Revenues are recorded when earned and expenses are recorded when
a liability is incurred, regardless of the timing of related cash flows. Property taxes and special
assessments are recognized as revenues in the fiscal year for which they are levied. Grants and similar
items are recognized as revenue when all eligibility requirements imposed by the provider have been met.
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NOTE 1 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
Generally, the effect of interfund activity has been removed from the government-wide financial
statements. However, charges between functions for certain interfund services provided are not
eliminated, as that would distort the direct costs and program revenues reported in those functions. 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 expenses of each
function. Interest on long-term debt is considered an indirect expense and is reported separately on the
Statement of Activities.
D. Fund Financial Statement Presentation
Separate fund financial statements are provided for governmental and proprietary funds. Major individual
governmental and enterprise funds are reported as separate columns in the fund financial statements.
Aggregated information for the remaining nonmajor funds are reported in single columns in the respective
fund financial statements.
Proprietary funds distinguish operating revenues and expenses from nonoperating 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 funds are charges to customers for sales and services. The operating expenses for the
enterprise funds include the cost of sales and services, administrative expenses, and depreciation on
capital assets. All revenues and expenses not meeting this definition are reported as nonoperating
revenues and expenses.
Governmental fund financial statements are reported using the current financial resources measurement
focus and the modified accrual basis of accounting. Under this basis of accounting transactions are
recorded in the following manner:
1. Revenue Recognition – Revenue is recognized when it becomes measurable and available.
“Measurable” means the amount of the transaction can be determined and “available” means
collectible within the current period or soon enough thereafter to be used 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 year. Grants and similar items are recognized when
all eligibility requirements imposed by the provider have been met.
Major revenue that is susceptible to accrual includes property taxes, intergovernmental revenue,
charges for services, and interest earned on investments. Only the portion of special assessments
receivable due within the current fiscal period is considered to be susceptible to accrual as
revenue of the current period. Major revenue that is not susceptible to accrual includes licenses
and permits, fees, and miscellaneous revenue. Such revenue is recorded only when received
because it is not measurable until collected.
2. Recording of Expenditures – Expenditures are generally recorded when a liability is incurred,
except for principal and interest on long-term debt and compensated absences, which are
recognized as expenditures to the extent they have matured. Capital asset acquisitions are
reported as capital outlay expenditures in the governmental funds. Proceeds of long-term debt are
reported as other financing sources.
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NOTE 1 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
Proprietary fund financial statements are reported using the economic resources measurement focus and
accrual basis of accounting, similar to the government-wide financial statements. Proprietary funds
distinguish operating revenues and expenses from nonoperating 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
funds and internal service funds are charges to customers for sales and services. The operating expenses
for the enterprise funds and internal service funds include the cost of sales and services, administrative
expenses, and depreciation on capital assets. All revenues and expenses that do not meet this definition
are reported as nonoperating 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.
Description of Funds
Each fund is accounted for as an independent entity. A description of the funds included in this report is
as follows:
Major Governmental Funds
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 Special Revenue Fund – The Community Center Special Revenue Fund
accounts for the revenues and expenditures related to 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.
EDA Special Revenue Fund – The EDA Special Revenue Fund is used to account for revenues and
expenditures related to the blended component unit. Tax increments, generated mainly by economic
and redevelopment districts, are the EDA’s primary revenue source.
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 Outlay Revolving Capital Projects Fund – The Capital Outlay Revolving Capital Projects
Fund is used to account for the revenues and expenditures related to capital outlay.
Sanitary Sewer Access Capital Projects Fund – The Sanitary Sewer Access Capital Projects Fund
is used to account for revenues and expenditures related to sanitary sewer connections.
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 (other than those financed by
proprietary funds).
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NOTE 1 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
Major Proprietary Funds
Water Enterprise Fund – The Water Enterprise Fund is used to account for all activities necessary
to provide water services to the residents and businesses of the City.
Sewage Enterprise Fund – The Sewage Enterprise Fund is used to account for all activities
necessary to provide sewage services to the residents and businesses of the City.
Liquor Enterprise Fund – The Liquor Enterprise Fund is used to account for the operations of the
City’s liquor store.
Fiber Optics Enterprise Fund – The Fiber Optics Enterprise Fund is used to account for all
activities necessary to provide fiber optic services to the residents and businesses of the City.
Deputy Registrar Enterprise Fund – The Deputy Registrar Enterprise Fund is used to account for
the operation of City’s department of motor vehicles.
Internal Service Funds – These funds account for the City’s central information technology and central
equipment services. Internal service funds operate in a manner similar to enterprise funds; however, they
provide services primarily to other departments within the City.
E. 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. Earnings from investments are allocated to the respective funds on the basis
of applicable participation by each fund. Investments are generally stated at fair value, except for
investments in 2a7-like 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 income is accrued at the Balance Sheet date.
Restricted – Certain proceeds of governmental and enterprise fund debt issues as well as certain
resources set aside for their repayment, are classified as restricted assets in the basic financial statements
because their use is limited by applicable bond covenants.
Cash and investments which are restricted include a Fiber Optics Project bond issue escrow account.
Assets limited to use include assets restricted for debt redemption.
F. Receivables
Utility and miscellaneous accounts receivable are reported at gross. 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 utilizes an allowance for uncollectible accounts to value its receivables only in the Fiber Optics
Proprietary Fund.
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NOTE 1 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
G. Notes Receivable
Notes receivable consist primarily of loans made by the City to area businesses for development or
redevelopment purposes. The terms and interest rates of the individual loans vary. Some notes receivable
are offset by deferred inflows of resources in the governmental funds.
The City has one note receivable totaling $600,000 with another local government. This note has an
interest rate of 3.95 percent and will mature at various dates through January 2016. This note receivable is
offset by deferred inflows of resources.
H. Property Taxes
Property tax levies are set by the City Council each year, and are certified to Wright County for collection
in the following year. In Minnesota, counties act 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. Property taxes may be paid by taxpayers in two equal
installments on May 15 and October 15. Wright County provides tax settlements to cities and other taxing
districts several times throughout the year. Taxes which remain unpaid at December 31 are classified as
delinquent taxes receivable and are offset by deferred inflows of resources in the governmental funds
financial statements.
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. The portion of
delinquent taxes not collected by the City in January is fully offset by deferred inflows of resources
because it is not available to finance current expenditures. Deferred inflows of resources in governmental
activities is susceptible to full accrual on the government-wide financial statements.
I. Special Assessments
Special assessments represent the financing for public improvements paid for by benefiting property
owners. These assessments are recorded as delinquent (levied, but unremitted) and deferred (certified, but
not yet levied) special assessments receivable, and are offset by deferred inflows of resources in the
governmental fund financial statements.
J. Inventories
The inventories of the proprietary funds are stated at cost on the first-in, first-out basis. Enterprise fund
inventory consists of merchandise held for resale at the Hi-Way Liquor Store.
K. Prepaid Items
Payments to vendors for services that will benefit future accounting periods are recorded as prepaid.
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.
L. Land Held for Resale
Land held for resale is recorded in the governmental fund which purchased it at the lower of cost or
market. Fund balance restricted in an amount equal to the land’s carrying value is reported in the
governmental funds as these assets are not available for appropriation.
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NOTE 1 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
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. Such assets are capitalized at historical cost, or
estimated historical cost for assets where actual historical cost is not available. Donated assets are
recorded as capital assets at their estimated fair market value at the date of donation. The City restructured
the capitalization policy which had a single threshold level of $5,000 or more for capitalizing capital
assets. The restructured policy divides each asset into a class with a related threshold as follows:
Class of Asset Threshold Level
Land $1
Land improvements $50,000
Building/building improvements $20,000
Primary infrastructure and utility $75,000
Secondary infrastructure $25,000
Equipment $10,000
Software and non-tangible $10,000
The cost of normal maintenance and repairs that does not add to the value of the asset or materially
extend asset lives is not capitalized. The City has elected to fully capitalize the infrastructure capital
assets of its governmental activities regardless of their acquisition date or amount.
Capital assets are recorded in the government-wide and proprietary fund financial statements, but are not
reported in the governmental funds financial statements. Interest incurred during the construction phase of
capital assets for business-type activities is included as part of the capitalized value of the assets
constructed.
Capital assets are depreciated using the straight-line method over their estimated useful lives. Since
surplus assets are generally sold for an immaterial amount when declared as no longer needed for city
purposes, no salvage value is taken into consideration for depreciation purposes. Useful lives vary from
10 to 40 years for infrastructure; 5 to 20 years for vehicles, machinery, and furniture and equipment; 12 to
40 years for buildings; and 10 to 20 years for improvements other than buildings. Capital assets not being
depreciated include land and construction in progress.
N. Deferred Inflows of Resources
In addition to liabilities, statements of financial position or balance sheets will sometimes report a
separate section for deferred inflows of resources. This separate financial statement element represents an
acquisition of net position that applies to future periods and so will not be recognized as an inflow of
resources (revenue) until that time. The City has only one type of item, which arises under a modified
accrual basis of accounting, which qualifies for reporting in this category. Accordingly, the item,
unavailable revenue, is reported only in the governmental funds Balance Sheet. The governmental funds
report unavailable revenue from three sources: property taxes, special assessments, and notes receivables
not collected within 60 days of year-end. These amounts are deferred and recognized as an inflow of
resources in the period the amounts become available.
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NOTE 1 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
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 current period. The face amount of debt issued is reported as other financing sources. Premiums
received on debt issuances are reported as other financing sources while discounts on debt issuances are
reported as other financing uses. Issuance costs, whether or not withheld from the actual debt proceeds
received, are reported as debt service expenditures.
P. Compensated Absences Payable
City employees earn vacation days based upon the number of completed years of service. The City
compensates employees for unused vacation upon termination of employment. Employees are entitled to
paid sick leave at various rates for each month of full-time service. Full-time employees who resign or
leave city employment voluntarily and in good standing, after giving proper notice, shall be compensated
for up to 50 days of unused sick leave under the following guidelines:
For union employees, one-fourth of the unused sick leave times the hourly rate at the time of giving
notice is paid. After five years of non-union employment, one-fourth of the unused sick leave times the
hourly rate at the time of giving notice is paid.
After 10 years of employment, all employees accrue one-half of the unused sick leave, times the hourly
rate at the time of giving notice.
All compensated absences are accrued when incurred in the government-wide and proprietary fund
financial statements. A liability for these amounts is reported in governmental funds only if they have
matured, for example, as a result of employee resignations and retirements.
Q. Budget
Budgets for the General Fund and major 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 City Council-approved supplemental appropriations and budget
transfers. No supplemental budget amendments were adopted during the year. Budget appropriations
lapse at year-end. The legal level of budgetary control is at the department level in the General Fund and
at the fund level in the major special revenue funds. Expenditures exceeded budgeted amounts in the
EDA Special Revenue Fund by $467,389.
R. Risk Management
The City is exposed to various risks of loss related to torts: theft of, damage to, or destruction of assets;
errors and omissions; injuries to employees; and natural disasters. The City manages these various risks
of loss as follows:
The City participates in the League of Minnesota Cities Insurance Trust (LMCIT) property and liability
insurance program, a joint self-insurance plan designed and administered by American Business Risk
Services and structured to operate through local insurance agents. Approximately 140 cities currently
participate in the program.
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NOTE 1 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
The City has the following coverage with LMCIT: a basic package of property, inland marine, automotive
physical damage and liability; comprehensive general and liquor liability; public officials’ errors and
omissions; umbrella liability; boiler and machinery; and workers’ compensation.
The City pays an annual premium to LMCIT, which in turn pays the local agent’s commission and pays
an administrative fee to American Business Risk Services. The remaining premium is split between
LMCIT and its reinsurers. The reinsurers in turn reimburse LMCIT for a corresponding share of each
loss.
A profit sharing agreement also provides for a return to LMCIT of a share of the reinsurers’ portion of the
premium if the loss experience is favorable.
To protect against the possibility that LMCIT’s share of the losses will exceed its share of the premium,
LMCIT also purchases aggregate reinsurance. The loss experience has been favorable the last three years
and the City has received a return of part of the premiums paid.
Settled claims resulting from these risks have not exceeded commercial insurance coverage in any of the
past three calendar years. There were no reductions in coverage from the prior year.
The City also purchases excess liability insurance coverage for claims that are not constrained by
statutory tort limits.
S. Statement of Cash Flows
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 to
be cash equivalent.
T. Net Position
In the government-wide and proprietary fund financial statements, net position represents the difference
between assets and deferred outflows of resources (if any), 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
“restricted” or “net investment in capital assets.”
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.
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NOTE 1 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
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 of the
City Council. Those committed amounts cannot be used for any other purpose unless the City
Council removes or changes the specified use by taking the same type of action it employed to
previously commit those amounts.
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 City’s Council, 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. Prior Period Adjustment
During the year ended December 31, 2013, the City recorded a prior period adjustment to the government
activities to adjust special assessment receivable due to the recording of duplicate special assessments in
prior years and special assessments recorded as a receivable in prior years for projects that were never
assessed to the property owners by the City. The net effect on the beginning net position as of January 1,
2013, was $3,282,241.
W. Change in Fund Structure and Change in Accounting Principle
The following change in accounting principle and change in fund structure resulted in the following
restatement of net position as of December 31, 2012:
GovernmentalBusiness-TypeGovernmentalProprietary
ActivitiesActivitiesFundsFunds
Net position/fund balance as of December 31, 2012
As previously reported78,705,160$ 31,359,487$ 35,532,056$ 31,359,487$
Change in accounting principle
Write-off of unamortized deferred charges(204,107) (463,177) – (463,177)
Change in fund structure
Reclass net position/fund balance482,754 (482,754) (91,411) 91,411
Reclass capital assets– – – (574,165)
As restated78,983,807$ 30,413,556$ 35,440,645$ 30,413,556$
Government-WideFund
Financial StatementsFinancial Statements
For the fiscal year ended December 31, 2013, the City elected to move the Deputy Registrar Fund to an
enterprise fund and the Cemetery Fund to a governmental fund. Prior year financial data has been
reclassified to reflect the change in fund classification.
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NOTE 1 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
For the fiscal year ended December 31, 2013, the City implemented GASB Statement No. 65, Items
Previously Reported as Assets and Liabilities. GASB Statement No. 65 identified specific items
previously reported as assets that will now be classified as either deferred outflows of resources or
outflows (expenditures/expenses), and items previously reported as liabilities that will now be reported as
either deferred inflows of resources or inflows (revenues). This standard requires retroactive
implementation, which resulted in the restatement of net position as of December 31, 2012.
NOTE 2 – CASH AND INVESTMENTS
A. Components of Cash and Investments
Cash and investments at year-end consist of the following:
Deposits 9,641,869$
Investments 21,045,255
Cash on hand 9,770
Total cash and investments – Statement of Net Position 30,696,894$
Cash and investments are reflected on the Statement of Net Position as follows:
Cash and investments – Statement of Net Position28,408,251$
Cash and investments – restricted – held for fiber optics activity2,288,643
Total 30,696,894$
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.
The following is considered the most significant risk associated with deposits:
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.
Minnesota Statutes require that all deposits be protected by federal deposit insurance, corporate surety
bond, or collateral. The market value of collateral pledged must equal 110 percent 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 was $9,641,869 while the balance on the bank
records was $9,855,783. At December 31, 2013, all deposits were covered by federal depository
insurance, surety bonds, or by collateral held by the City’s agent in the City’s name.
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NOTE 2 – CASH AND INVESTMENTS (CONTINUED)
C. Investments
The City has the following investments at year-end:
NoLessMore
Investment TypeRatingAgencyMaturityThan 11 to 55 to 10Than 10Total
U.S. agency securities
Federal Farm Credit BankAA+S&P–$ –$ –$ –$ 443,392$ 443,392$
Federal Agriculture Mortgage
CorporationAA+S&P– – – – 638,682 638,682
Federal Home Loan BankAA+S&P– 188,506 – 1,316,970 759,654 2,265,130
Federal National Mortgage
AssociationAA+S&P– – – – 1,579,000 1,579,000
Negotiable certificates of depositN/RN/A– 1,723,742 3,703,605 459,185 – 5,886,532
U.S. treasury securitiesN/AN/A– 1,479,985 – – – 1,479,985
Local government securitiesAAAS&P– – – – 1,611,990 1,611,990
Local government securitiesAA+S&P– – – – 1,446,601 1,446,601
Local government securitiesAaaMoody’s– – – – 1,302,379 1,302,379
Local government securitiesAa1Moody’s– – – – 523,180 523,180
Local government securitiesAMoody’s– – – 313,221 – 313,221
Money market fundsAAAmS&P3,502,854 – – – – 3,502,854
4M FundN/RN/A52,309 – – – – 52,309
Total investments3,555,163$ 3,392,233$ 3,703,605$ 2,089,376$ 8,304,878$ 21,045,255$
N/A – Not Applicable
N/R – Not Rated
Credit RiskInterest Risk – Maturity Duration in Years
Investments are subject to various risks, the following of which are considered the most significant:
Custodial Credit Risk – For investments, this is the risk that in the event of a failure of the
counterparty to an investment transaction (typically a broker-dealer) the City would not be able to
recover the value of its investments or collateral securities that are in the possession of an outside
party. The City’s investment policy does not provide additional requirements beyond state statutes,
but the City typically limits its exposure by purchasing insured or registered investments, or by the
control of who holds the securities.
Credit Risk – This is the risk that an issuer or other counterparty to an investment will not fulfill its
obligations. Minnesota Statutes limit the City’s investments to direct obligations or obligations
guaranteed by the United States or its agencies; shares of investment companies registered under the
Federal Investment Company Act of 1940 that receive the highest credit rating, are rated in one of the
two highest rating categories by a statistical rating agency, and all of the investments have a final
maturity of 13 months or less; general obligations rated “A” or better; revenue obligations rated “AA”
or better; general obligations of the Minnesota Housing Finance Agency rated “A” or better; bankers’
acceptances of United States banks eligible for purchase by the Federal Reserve System; commercial
paper issued by United States corporations or their Canadian subsidiaries, rated of the highest quality
category by at least two nationally recognized rating agencies, and maturing in 270 days or less;
Guaranteed Investment Contracts guaranteed by a United States commercial bank, domestic branch of
a foreign bank, or a United States insurance company, and with a credit quality in one of the top two
highest categories; repurchase or reverse purchase agreements and securities lending agreements with
financial institutions qualified as a “depository” by the government entity, with banks that are
members of the Federal Reserve System with capitalization exceeding $10,000,000; that are a
primary reporting dealer in U.S. government 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.
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NOTE 2 – CASH AND INVESTMENTS (CONTINUED)
Concentration Risk – This is the risk associated with investing a significant portion of the City’s
investment (considered 5 percent 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 percent 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. More than 5 percent of the City’s investments are in Federal National
Mortgage Association; Federal Home Loan Bank; and Kane, Cook, and DuPage counties. These
investments are 8 percent, 11 percent, and 5 percent, respectively, of the City’s total investments.
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 not registered with the Securities Exchange
Commission (SEC) that follows the same regulatory rules of the SEC under rule 2a7. 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.
NOTE 3 – CAPITAL ASSETS
Capital asset activity for the year ended December 31, 2013 was as follows:
A. Changes in Capital Assets Used in Governmental Activities
Balance –Transfers and
Beginning ofCompletedBalance –
Year, as RestatedAdditionsDeletionsConstructionEnd of Year
Capital assets, not depreciated
Land 11,298,862$ 620,669$ –$ –$ 11,919,531$
Construction in progress3,157,351 1,128,049 – (793,016) 3,492,384
Total capital assets, not depreciated14,456,213 1,748,718 – (793,016) 15,411,915
Capital assets, depreciated
Buildings13,709,653 – – – 13,709,653
Furniture and equipment516,177 17,013 (5,523) – 527,667
Vehicles2,726,541 – – – 2,726,541
Machinery and equipment1,439,298 100,049 (86,515) – 1,452,832
Improvements other than buildings5,698,145 – (6,000) – 5,692,145
Infrastructure67,866,415 – – 793,016 68,659,431
Total capital assets, depreciated91,956,229 117,062 (98,038) 793,016 92,768,269
Less accumulated depreciation on
Buildings(4,917,074) (351,396) – – (5,268,470)
Furniture and equipment(411,584) (33,418) 5,523 – (439,479)
Vehicles(1,809,378) (109,247) – – (1,918,625)
Machinery and equipment(1,118,496) (94,193) 77,972 – (1,134,717)
Improvements other than buildings(2,911,979) (204,055) 6,000 – (3,110,034)
Infrastructure(26,185,389) (3,189,650) – – (29,375,039)
Total accumulated depreciation(37,353,900) (3,981,959) 89,495 – (41,246,364)
Net capital assets, depreciated54,602,329 (3,864,897) (8,543) 793,016 51,521,905
Net capital assets69,058,542$ (2,116,179)$ (8,543)$ –$ 66,933,820$
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NOTE 3 – CAPITAL ASSETS (CONTINUED)
Internal ServiceGovernmentalTotalInternal ServiceGovernmentalTotal
Fund AdditionsFund AdditionsAdditionsFund AssetsFunds TotalCapital Assets
Capital assets, not depreciated
Land –$ 620,669$ 620,669$ –$ 11,919,531$ 11,919,531$
Construction in progress– 1,128,049 1,128,049 – 3,492,384 3,492,384
Total capital assets, not depreciated– 1,748,718 1,748,718 – 15,411,915 15,411,915
Capital assets, depreciated
Buildings– – – – 13,709,653 13,709,653
Furniture and equipment17,013 – 17,013 17,013 510,654 527,667
Vehicles– – – – 2,726,541 2,726,541
Machinery and equipment95,000 5,049 100,049 95,000 1,357,832 1,452,832
Improvements other than buildings– – – – 5,692,145 5,692,145
Infrastructure– – – – 68,659,431 68,659,431
Total capital assets, depreciated112,013 5,049 117,062 112,013 92,656,256 92,768,269
Less accumulated depreciation on
Buildings– (351,396) (351,396) – (5,268,470) (5,268,470)
Furniture and equipment(1,631) (31,787) (33,418) (1,631) (437,848) (439,479)
Vehicles– (109,247) (109,247) – (1,918,625) (1,918,625)
Machinery and equipment(10,076) (84,117) (94,193) (10,076) (1,124,641) (1,134,717)
Improvements other than buildings– (204,055) (204,055) – (3,110,034) (3,110,034)
Infrastructure– (3,189,650) (3,189,650) – (29,375,039) (29,375,039)
Total accumulated depreciation(11,707) (3,970,252) (3,981,959) (11,707) (41,234,657) (41,246,364)
Net capital assets, depreciated100,306 (3,965,203) (3,864,897) 100,306 51,421,599 51,521,905
Net capital assets100,306$ (2,216,485)$ (2,116,179)$ 100,306$ 66,833,514$ 66,933,820$
B. Changes in Capital Assets Used in Business-Type Activities
Balance –Transferred
Beginning ofCompletedBalance –
Year, as RestatedAdditionsDeletionsConstructionEnd of Year
1,197,945$ –$ –$ –$ 1,197,945$
Construction in progress79,019 2,639,432 – (310,456) 2,407,995
Total capital assets, not depreciated1,276,964 2,639,432 – (310,456) 3,605,940
Buildings6,820,979 – – – 6,820,979
Furniture and equipment173,148 – (6,595) 20,456 187,009
Vehicles677,324 – – – 677,324
Machinery and equipment1,377,029 – – – 1,377,029
20,160,525 – – – 20,160,525
Infrastructure49,888,186 – – 290,000 50,178,186
79,097,191 – (6,595) 310,456 79,401,052
Buildings(3,191,442) (197,313) – – (3,388,755)
Vehicles(621,845) (23,775) – – (645,620)
Machinery and equipment(799,210) (58,874) – – (858,084)
Furniture and equipment(134,242) (13,725) 6,595 – (141,372)
Infrastructure(17,005,252) (1,316,221) – – (18,321,473)
(12,265,145) (480,415) – – (12,745,560)
(34,017,136) (2,090,323) 6,595 – (36,100,864)
Net capital assets, depreciated45,080,055 (2,090,323) – 310,456 43,300,188
46,357,019$ 549,109$ –$ –$ 46,906,128$
Capital assets, not depreciated
Land
Capital assets, depreciated
Improvements other than buildings
Total accumulated depreciation
Net capital assets
Less accumulated depreciation on
Improvements other than buildings
Total capital assets, depreciated
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NOTE 3 – CAPITAL ASSETS (CONTINUED)
C. Depreciation Expenses by Function
Depreciation expense for the year ended December 31, 2013 was charged to the following functions:
Governmental activities
General government38,092$
Public safety83,375
Public works3,453,272
Culture and recreation395,513
Capital assets held by the City’s internal service funds –
charged to the various functions based on usage of assets11,707
Total depreciation expense – governmental activities3,981,959$
Business-type activities
Water520,014$
Sewer1,107,508
Liquor47,141
FiberNet410,818
Deputy registrar4,842
Total depreciation expense – business-type activities2,090,323$
NOTE 4 – LONG-TERM LIABILITIES
A. Description
The City has the following types of long-term liabilities outstanding at December 31, 2013: general
obligation (G.O.) bonds, special assessment improvement bonds with governmental commitment, revenue
bonds, compensated absences, and net other post-employment benefits (OPEB) obligation.
General Obligation Bonds – The City has three outstanding issues of general obligation bonds,
issued to finance street improvement projects and construct the wastewater treatment plant.
General Obligation Certificates of Indebtedness – The City issues general obligation
certificates of indebtedness to provide financing for capital equipment. Debt service is covered by
general property taxes.
General obligation certificates of indebtedness are direct obligations that pledge the full faith and
credit of the City. These certificates generally are issued as five-year notes with fluctuating debt
service payments each year.
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.
Revenue Bonds – These bonds were issued for improvements or projects that directly benefit a
city enterprise activity. The debt issued will be repaid from user fees which benefit from the
improvements or projects.
Compensated Absences – The City provides vacation and sick leave benefits to certain eligible
employees. The liability will be repaid by the General Fund, Community Center Special Revenue
Fund, Water Fund, Liquor Fund, or Fiber Optics Fund for which each employee is employed.
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NOTE 4 – LONG-TERM LIABILITIES (CONTINUED)
Net OPEB Obligation – The City provides post-employment benefits to certain eligible
employees through the City’s OPEB Plan. The liability will be repaid based on a pay-as-you-go
financing requirement as well as any additional amounts determined annually by the City. The
liability will be repaid by the General Fund.
B. Refunding Bonds
In 2011, the City issued $10,735,000 of General Obligation Refunding Bonds, Series 2011A. The
proceeds of this issue totaling $10,735,000 was used to retire, in advance of their stated maturities, the
2014 through 2023 maturities of the City’s Improvement Bonds, Series 2005, on the February 1, 2013 call
date of the refunded issue. Until the February 1, 2013 call date, the City made all debt service payments
on the 2005 issue, and all debt service on the 2011A issue was paid from the refunding escrow account.
On February 1, 2013, the escrow account was used to call the remaining principal of the 2005 issue, and
the City assumed all future principal and interest payments on the 2011A issue. The “crossover
refunding” reduced the City’s total future debt service payments by $667,071 and resulted in a present
value savings of $615,953.
Long-term liabilities at year-end are summarized as follows:
Final
InterestMaturityBalance –
Original IssueRateIssue DateDateEnd of Year
Governmental activities
General obligation bonds
2007 Improvement Bonds5,137,903$ 4.00%12/27/200702/01/20182,720,653$
2008B Sewer Revenue Refunding Bond9,270,000$ 3.40%04/17/200808/01/20184,786,000
General obligation certificate of indebtedness
2013A Certificate of indebtedness500,000$ 0.35–2.10%04/26/201312/01/2020445,000
Special assessments bonds
2010A General Obligation Improvement and
Refunding Bonds3,255,000$ 0.40–2.70%09/14/201002/01/20212,275,000
2011A General Obligation Refunding Bonds10,735,000$ 2.00–3.00%10/19/201102/01/202310,735,000
Revenue bonds
2008A Public Project Revenue Refunding Bonds 6,180,000$ 3.20%02/20/200802/01/20151,975,000
Net premiums (discounts) on bonds 73,104
Compensated absences payable 310,579
Net OPEB obligation 255,604
Total governmental activity long-term liabilities23,575,940$
Business-type activities
General obligation bonds
2007 Improvement Bonds907,097$ 4.00%12/27/200702/01/2018479,347$
2013B Wastewater Treatment Bonds3,000,000$ 2.00–3.35%12/05/201312/01/20283,000,000
Revenue bonds
2008 Telecommunications Revenue Bonds26,445,000$ 6.50–6.75%06/05/200806/01/203126,445,000
Net premiums (discounts) on bonds (360,211)
Compensated absences payable 105,946
Total business-type activity long-term liabilities29,670,082$
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NOTE 4 – LONG-TERM LIABILITIES (CONTINUED)
C. Minimum Debt Payments
Minimum annual principal and interest payments to maturity for bonds payable are as follows:
Year Ending
December 31,PrincipalInterestPrincipalInterestPrincipalInterest
20141,421,000$ 253,453$ 60,000$ 6,120$ 3,000,000$ 240,300$
20151,468,000 201,382 60,000 5,760 2,575,000 187,649
20161,521,250 147,509 60,000 5,250 2,590,000 138,000
20171,520,250 92,803 65,000 4,590 985,000 103,267
20181,576,153 37,213 65,000 3,713 995,000 83,674
2019–2023– – 135,000 4,143 2,865,000 178,932
7,506,653$ 732,360$ 445,000$ 29,576$ 13,010,000$ 931,822$
Governmental Activities
Special
General Obligation BondsCertificate of IndebtednessAssessment Bonds
General Obligation
Year Ending
December 31,PrincipalInterestPrincipalInterestPrincipalInterest
2014990,000$ 47,360$ 273,000$ 91,538$ 325,000$ 1,759,813$
2015985,000 15,760 276,000 84,158 395,000 1,744,214
2016– – 279,750 76,643 460,000 1,718,538
2017– – 273,750 69,173 625,000 1,688,637
2018– – 281,847 61,748 670,000 1,648,012
2019–2023– – 975,000 241,203 5,405,000 7,410,013
2024–2028– – 1,120,000 108,565 9,225,000 5,143,162
2029–2031– – – – 9,340,000 1,371,600
1,975,000$ 63,120$ 3,479,347$ 733,028$ 26,445,000$ 22,483,989$
General Obligation BondsRevenue Bonds
Business-Type Activities
Revenue Bonds
Governmental Activities
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NOTE 4 – LONG-TERM LIABILITIES (CONTINUED)
D. Changes in Long-Term Liabilities
December 31,December 31,Due Within
2012AdditionsRetirements2013One Year
Governmental activities
General obligation bonds 8,877,403$ –$ 1,370,750$ 7,506,653$ 1,421,000$
Certificate of indebtedness– 500,000 55,000 445,000 60,000
Special assessment bonds26,625,000 – 13,615,000 13,010,000 3,000,000
Revenue bonds2,970,000 – 995,000 1,975,000 990,000
Add
Premiums on bonds770,502 – 483,306 287,196 –
Less
Discounts on bonds(256,413) – 42,321 (214,092) –
Compensated absences323,014 275,503 287,938 310,579 87,836
Net OPEB obligation215,663 57,761 17,820 255,604 –
Total39,525,169$ 833,264$ 16,867,135$ 23,575,940$ 5,558,836$
Business-type activities
General obligation bonds568,597$ 3,000,000$ 89,250$ 3,479,347$ 273,000$
Revenue bonds26,445,000 – – 26,445,000 325,000
Add
Premiums on bonds9,364 29,783 2,038 37,109 –
Less
Discounts on bonds(421,730) – 24,410 (397,320) –
Compensated absences108,596 96,284 98,934 105,946 32,273
Total26,709,827$ 3,126,067$ 214,632$ 29,670,082$ 630,273$
E. Conduit Debt
The City has issued Senior Housing Refunding Revenue Bonds to provide financial assistance to private
sector entities for the acquisition and construction of senior housing facilities deemed to be in the public
interest. The bonds are secured by the property financed and are payable solely from payments received
on the underlying mortgage loans. 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. Accordingly, the bonds are not reported as liabilities in the accompanying
financial statements. As of December 31, 2013, there was one series of Senior Housing Refunding
Revenue Bonds outstanding. The original issue amounts totaled $3,000,000 with an interest rate of
4.75 percent. This balance has been reduced through annual payments and partial call prepayments. The
outstanding balance as of December 31, 2013 is undetermined.
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NOTE 4 – LONG-TERM LIABILITIES (CONTINUED)
F. Pay-As-You-Go Tax Increment Note
The City has development agreements with private developers for a property in the City’s Tax Increment
Districts. As part of the agreements, the City has agreed to reimburse the developers for certain costs
through pay-as-you-go tax increment notes. The notes provide for the payment of principal equal to the
developers’ costs, plus interest at rates ranging from 5.0 percent to 8.5 percent (interest accrual
commencing upon the developer completing the project). Payments of the notes will be made at the lesser
of the scheduled note payments or the actual net tax increment received during the period specified in the
agreement. The note will be cancelled at the end of the agreement term, whether it has been fully repaid
or not. The outstanding principal balance of these notes as of December 31, 2013 is $1,312,543. These
notes are not included in the City’s long-term debt, because repayment is required only to the extent
sufficient tax increments are received. The City’s position is that this is an obligation to assign future and
uncertain revenue sources and, as such, is not actual debt in substance.
G. Revenue Pledged
Future revenue pledged for the payment of long-term debt is as follows:
Percent
of TotalRemainingPrincipalPledged
Use ofDebtTerm ofPrincipaland InterestRevenue
Bond IssueProceedsTypeServicePledgeand InterestPaidReceived
Revenue bonds
2008A Public Project Revenue Community
Refunding Bonds CenterUser fees100%2008–20152,038,120$ 1,074,120$ 1,304,064$
2008 TelecommunicationsUtility
Revenue BondsFiber optics charges100%2008–203151,720,884$ –$ 1,621,662$
2013B G.O. Wastewater Utility
Treatment BondsSewage Fund charges100%2013–20283,684,755$ –$ 2,006,718$
Revenue PledgedCurrent Year
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. In order to
comply with the arbitrage rebates requirements, positive arbitrage must be paid to the U.S. treasury at the
end of each five-year anniversary date of the bond issue. As of December 31, 2013, there are no amounts
of arbitrage rebates.
NOTE 5 – DEFINED BENEFIT PENSION PLANS – STATE-WIDE
A. Plan Description
All full-time and certain part-time employees of the City are covered by defined benefit plans
administered by the Public Employees’ Retirement Association (PERA) of Minnesota. PERA administers
the General Employees’ Retirement Fund (GERF) and the Public Employees Police and Fire Fund
(PEPFF), which are cost-sharing, multiple-employer retirement plans. These plans are established and
administered in accordance with Minnesota Statutes, Chapters 353 and 356.
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NOTE 5 – DEFINED BENEFIT PENSION PLANS – STATE-WIDE (CONTINUED)
GERF members belong to either the Coordinated Plan or the Basic Plan. Coordinated Plan members are
covered by Social Security and Basic Plan members are not. All new members must participate in the
Coordinated Plan. All police officers, firefighters, and peace officers who qualify for membership by
statute are covered by the PEPFF.
PERA provides retirement benefits as well as disability benefits to members, and benefits to survivors
upon death of eligible members. Benefits are established by state statutes, and vest after five years of
credited service. The defined retirement benefits are based on a member’s highest average salary for any
five successive years of allowable service, age, and years of credit at termination of service.
Two methods are used to compute benefits for PERA’s Coordinated and Basic Plan members. The
retiring member receives the higher of a step-rate benefit accrual formula (Method 1) or a level accrual
formula (Method 2). Under Method 1, the annuity accrual rate for a Basic Plan member is 2.2 percent of
average salary for each of the first 10 years of service and 2.7 percent for each remaining year. The
annuity accrual rate for a Coordinated Plan member is 1.2 percent of average salary for each of the first
10 years of service and 1.7 percent for each remaining year. Under Method 2, the annuity accrual rate is
2.7 percent of average salary for Basic Plan members and 1.7 percent for Coordinated Plan members for
each year of service. For PEPFF members, the annuity accrual rate is 3.0 percent for each year of service.
For all PEPFF members and GERF members hired prior to July 1, 1989 whose annuity is calculated using
Method 1, a full annuity is available when age plus years of service equal 90. Normal retirement age is 55
for PEPFF members and 65 for Basic and Coordinated Plan members hired prior to July 1, 1989. Normal
retirement age is the age for unreduced Social Security benefits capped at 66 for Coordinated Plan
members hired on or after July 1, 1989. A reduced retirement annuity is also available to eligible
members seeking early retirement.
There are different types of annuities available to members upon retirement. A single-life annuity is a
lifetime annuity that ceases upon the death of the retiree—no survivor annuity is payable. There are also
various types of joint and survivor annuity options available which will be payable over joint lives.
Members may also leave their contributions in the fund upon termination of public service in order to
qualify for a deferred annuity at retirement age. Refunds of contributions are available at any time to
members who leave public service, but before retirement benefits begin.
The benefit provisions stated in the previous paragraphs of this section are current provisions and apply to
active plan participants. Vested, terminated employees who are entitled to benefits, but are not receiving
them yet are bound by the provisions in effect at the time they last terminated their public service.
PERA issues a publicly available financial report that includes financial statements and required
supplementary information for GERF and PEPFF. That report may be obtained at mnpera.org; by writing
to PERA at 60 Empire Drive, Suite 200, St. Paul, Minnesota 55103-2088; or by calling (651) 296–7460
or (800) 652–9026.
B. Funding Policy
Minnesota Statutes, Chapter 353 sets the rates for employer and employee contributions. These statutes
are established and amended by the State Legislature. The City makes annual contributions to the pension
plans equal to the amount required by state statutes. GERF Basic Plan members and Coordinated Plan
members were required to contribute 9.1 percent and 6.25 percent, respectively, of their annual covered
salary in 2013. PEPFF members were required to contribute 9.6 percent of their annual covered salary in
2013. In 2013, the City was required to contribute the following percentages of annual covered payroll:
11.78 percent for Basic Plan members, 7.25 percent for Coordinated Plan members, and 14.4 percent for
PEPFF members.
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NOTE 5 – DEFINED BENEFIT PENSION PLANS – STATE-WIDE (CONTINUED)
The City’s contributions for the past three years ending December 31, 2013, 2012, and 2011 were
$241,157, $256,660, and $248,890, respectively. The City’s contributions were equal to the contractually
required contributions for each year as set by state statutes.
NOTE 6 – CITY OF MONTICELLO FIRE RELIEF ASSOCIATION
A. Plan Description
The City contributes to the City of Monticello Fire Relief Association (the Association), a single
employer retirement system that acts as a common investment manager and administrator for the City’s
firefighters. All active members of the fire department are members of the Association. 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.
Upon approval by the Board of Trustees, lump sum retirement benefits are either 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 $2,850 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 or totally disabled, the Association shall
pay the sum of $2,850 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 equal to the actual time weighted total rate of return
as reported by the Minnesota State Auditor’s Office, up to five percent, compounded annually. A
deferred vested member will not be eligible for disability benefits.
B. Funding Policy
Minnesota Statutes § 69.772 sets the minimum contribution requirement for the City on an annual basis,
including state aid passed through the City. These statutes are established and amended by the State
Legislature. The Association is comprised of volunteers, and no member contribution is required.
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NOTE 6 – CITY OF MONTICELLO FIRE RELIEF ASSOCIATION (CONTINUED)
C. Contributions
Contributions by the City are determined in accordance with Minnesota Statutes as follows:
Normal cost for next year (increase in pension benefit obligation)
Plus estimated expenses for next year and 10 percent of any deficits
Less anticipated income next year and 10 percent of any surplus
The state of Minnesota contributes amortization aid, or 2 percent fire aid, in accordance with state statute
requirements. Plan members are not required to contribute to the Plan. The State Legislature may amend
contribution requirements of the City and state. Municipal contributions are determined by the preparation
of state mandated Schedules I and II, which must be certified to the City by August 1 of the preceding
calendar year.
Three-year trend information for the pension plan is as follows:
Three-Year Trend Information201320122011
Statutory required contribution (SRC)109,594$ 74,221$ 72,647$
Contribution made
City– – –
State aid – pass-through aid 109,594 74,221 72,647
Net pension obligation– – –
Percentage contributed100% 100% 100%
D. Funding Status
Additional information regarding statutory assumptions and valuation methods are outlined below:
SRC Form valuation dateAugust 1, 2013
Statutory assumptions
Administration expense increase3.5%
Investment rate of return5.0%
2012 state aid contribution100.0%
Amortization of pension benefit surplus (deficit)10.0%
The funding status of the plan for the last three years are as follows:
Statutory
Valuation Date –Statutory ValueAccruedFundedFunded
December 31,of AssetsLiability (SAL)(Unfunded) SALRatio
20131,114,949$ 965,425$ 149,524$ 115.5%
20121,046,960$ 1,031,472$ 15,488$ 101.5%
20111,127,049$ 1,220,861$ (93,812)$ 92.3%
The Schedule of Funding Progress immediately following the notes to basic financial statements presents
multi-year trend information about whether the statutory value of plan assets is increasing or decreasing
over time relative to the statutory accrued liabilities for benefits.
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NOTE 7 – OTHER POST-EMPLOYMENT BENEFITS (OPEB) PLAN
A. Plan Description
The City provides post-employment insurance benefits to certain eligible employees through the City’s
OPEB Plan, a single-employer defined benefit plan administered by the City. All post-employment
benefits are based on contractual agreements with employee groups. The Retiree Health Plan does not
issue a publicly available financial report. These contractual agreements do not include any specific
contribution or funding requirements. These benefits are summarized as follows:
Post-Employment Insurance Benefits – All retirees of the City have the option under state law to
continue their medical insurance coverage through the City from the time of retirement until the
employee reaches the age of eligibility for Medicare. For members of all employee groups, the retiree
must pay the full premium to continue coverage for medical and dental insurance.
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, 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.
B. Funding Policy
The required contribution is based on projected pay-as-you-go financing requirements, with additional
amounts to pre-fund benefits as determined annually by the City.
C. Annual OPEB Cost and Net OPEB Obligation
The City’s annual OPEB cost (expense) is calculated based on the ARC of the City, an amount
determined on an actuarially determined basis in accordance with the parameters of GASB Statement
Nos. 43 and 45. The ARC represents a level funding that, if paid on an ongoing basis, is projected to
cover normal costs each year and amortize any unfunded actuarial liabilities (or funding excess) over a
period not to exceed 30 years. The following table shows the components of the City’s annual OPEB cost
for the year, the amount actually contributed to the plan, and the changes in the City’s net OPEB
obligation to the plan:
ARC61,606$
Interest on net OPEB obligation8,627
Adjustment to ARC(12,472)
Annual OPEB cost (expense)57,761
Less contribution made17,820
Increase in net OPEB obligation39,941
Net OPEB obligation – beginning of year215,663
Net OPEB obligation – end of year 255,604$
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NOTE 7 – OTHER POST-EMPLOYMENT BENEFITS (OPEB) PLAN (CONTINUED)
The City’s annual OPEB cost, the percentage of annual OPEB cost contributed to the plan, and the net
OPEB obligation for the last three years are as follows:
Beginning
FiscalOPEBAnnualEmployerNet OPEB
Year EndedObligationOPEB CostContributionObligation
January 1, 2011143,939$ 55,337$ 16,769$ 30.3%182,507$
January 1, 2012182,507$ 56,654$ 23,498$ 41.5%215,663$
January 1, 2013215,663$ 57,761$ 17,820$ 30.9%255,604$
Percentage of
Annual OPEB
Cost Contributed
D. Funded Status and Funding Progress
As of January 1, 2011, the most recent actuarial valuation date, the plan was zero percent funded. The
actuarial accrued liability for benefits was $362,290 and the actuarial value of assets was $0, resulting in
an unfunded actuarial accrued liability (UAAL) of $362,290. The covered payroll (annual payroll of
active employees covered by the plan) was $3,108,685, and the ratio of the UAAL to the covered payroll
was 11.65 percent.
Actuarial valuations of an ongoing plan involve estimates of the value of reported amounts and
assumptions about the probability occurrence of events far into the future. Examples include assumptions
about future employment, mortality, and the healthcare cost trend. Amounts determined regarding the
funded status of the plan and ARC of the employer are subject to continual revision as actual results are
compared with past expectations and new estimates are made about the future. The Schedule of Funding
Progress immediately following the notes to basic financial statements presents multi-year trend
information about whether the actuarial value of plan assets is increasing or decreasing over time relative
to the actuarial accrued liabilities for benefits.
E. Actuarial Methods and Assumptions
Projections of benefits for financial reporting purposes are based on the substantive plan (the plan as
understood by the employer and the plan members) and include the types of benefits provided at the time
of each valuation and the historical pattern of sharing of benefit costs between the employer and plan
members to that point. The actuarial methods and assumptions used include techniques that are designed
to reduce the effects of short-term volatility in actuarial accrued liabilities and the actuarial value of
assets, consistent with the long-term perspective of the calculations.
In the January 1, 2011 actuarial valuation, the projected unit credit actuarial cost method was used. The
actuarial assumptions included: a 4.0 percent investment rate of return (net of administrative expenses)
based on the City’s own investments; an annual healthcare cost trend rate of 10.0 percent initially,
reduced by decrements to an ultimate rate of 5.0 percent after 10 years for medical insurance. The
assumptions used did not include OPEB inflation increases. The UAAL is being amortized on a level
dollar basis over a closed period. The remaining amortization period at January 1, 2011 for the various
amortization layers ranged from 25 to 30 years.
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NOTE 8 – FUND BALANCES
Classifications
At December 31, 2013, a summary of the City’s governmental fund balance classifications are as follows:
EconomicDebt
GeneralCommunityDevelopmentServiceCapitalNonmajor
FundCenterAuthorityFundProjectsFundsTotal
Nonspendable
Prepaid items116,976$ 16,886$ 2,074$ –$ –$ 1,678$ 137,614$
Notes receivable141,124 – – – – – 141,124
Land held for resale– – – – 1,802,288 – 1,802,288
Total nonspendable258,100 16,886 2,074 – 1,802,288 1,678 2,081,026
Restricted
Debt service– – – 2,750,079 – – 2,750,079
Economic development– – – – – 1,051,642 1,051,642
Perpetual care– – – – – 14,033 14,033
Tax increment– – 7,113,231 – – – 7,113,231
Total restricted– – 7,113,231 2,750,079 – 1,065,675 10,928,985
Assigned
Capital improvements– – – – 1,677,406 3,580,570 5,257,976
Community center
operations– 254,318 – – – – 254,318
Park improvements– – – – – 973,433 973,433
Total assigned– 254,318 – – 1,677,406 4,554,003 6,485,727
Unassigned3,656,463 – – – – – 3,656,463
Total3,914,563$ 271,204$ 7,115,305$ 2,750,079$ 3,479,694$ 5,621,356$ 23,152,201$
Special Revenue Funds
NOTE 9 – INTERFUND TRANSFERS
Interfund transfers for the year ended December 31, 2013 consisted of the following:
Economic
CommunityDevelopmentDebtCapitalNonmajorInternal
Transfers OutCenterAuthorityServiceProjectsGovernmentalFiber OpticsServiceTotal
General–$ 92,000$ –$ –$ –$ –$ –$ 92,000$
Community center– – 875,000 – – – – 875,000
Economic Development
Authority– – 319,403 460,401 – – – 779,804
Capital Outlay Revolving – – – 1,137,888 – 210,000 530,663 1,878,551
Sanitary Sewer Access– – 2,072,049 – – – – 2,072,049
Capital Projects100,000 – – – 750,000 – – 850,000
Nonmajor governmental – – 611,529 – – – – 611,529
Water– – 413,500 – – – – 413,500
Liquor– – – – – 650,000 – 650,000
Deputy Registrar75,000 – – – – – – 75,000
175,000$ 92,000$ 4,291,481$ 1,598,289$ 750,000$ 860,000$ 530,663$ 8,297,433$
Transfers In
These transfers were made to finance general operations, capital projects, and debt service payments.
-50-
NOTE 10 – CONCENTRATION OF REVENUES
Cargill Kitchen solutions is the largest customer of water and sewage services. The company’s water
purchases account for $81,961, or 6.6 percent, of Water Fund operating revenue; and the company’s
sewage charges account for $346,477, or 17.3 percent, of Sewage Fund operating revenue. Additionally,
Northern States Power Company’s (Xcel Energy) net tax capacity for property taxes payable in 2013 is
$9,901,516, or 50.6 percent, of the total net capacity of $19,579,693. Accordingly, Xcel Energy’s share of
the $7.9 million city property tax levy is $4.0 million. The tax capacity on January 1, 2013, is based on
market values certified to the state on January 1, 2012. Consequently, in 2012, Xcel Energy retired some
assets at its Monticello nuclear plant, decreasing the company’s net tax capacity to $9,285,841, or
48.8 percent, of the $19,021,771 total tax capacity for taxes payable in 2014.
NOTE 11 – COMMITMENTS
A. Construction Contracts
During fiscal 2013, the City awarded contracts for various construction and remodeling projects. The
City’s commitment for uncompleted work on these contracts at December 31, 2013 is approximately
$917,750.
B. Legal Claims
The City has the usual and customary type of miscellaneous legal claims pending at year-end. Although
the lawsuits are not presently determinable, the City’s management believes that the City will not incur
any material monetary loss resulting from these claims. No loss has been recorded on the City’s financial
statements relating to these claims.
NOTE 12 – DEFAULT ON BONDS
On June 6, 2012, the City notified the trustee for the $26,445,000 Monticello Telecommunications
Revenue Bonds, Series 2008 that it would no longer make monthly sinking fund payments from
supplemental sources. A technical default occurred on July 1, 2012, when the City failed to make the
sinking fund payment. On December 1, 2012, the first payment default occurred, as the trustee opted not
to tap the $2.3 million in the bond reserve funds in order to make an $882,669 interest payment due on
that date. A second non-payment default occurred on June 1, 2013, when an $882,669 interest and
$85,000 principal payment was not made. A third non-payment default occurred on December 1, 2013,
when an $879,906 interest payment was not made.
Under the threat of litigation from bondholders, the City entered into a tolling agreement with the trustee
on April 1, 2013 in order to permit time for good faith negotiations toward a settlement agreement. On
October 2, 2013, the City and trustee, on behalf of bondholders, entered into a settlement agreement
whereby the City would pay a $5.75 million settlement (21.7 percent of original par) in exchange for
release from all future debt service requirements on the bonds, release from any future claims from
bondholders, and the ability to continue to own and operate the telecommunications enterprise. The
settlement agreement is awaiting approval by state and federal courts. While bondholders have the option
to opt out of the settlement agreement and pursue damages independently, that scenario is unlikely given
that the largest investors have stated their support of the agreement and smaller investors would have
limited net gains given they would be responsible for their litigation costs. The City will also be required
to pay any funds remaining in the trust accounts held under the bond’s indenture to bondholders under the
terms of this settlement.
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NOTE 13 – GASB STANDARDS ISSUED BUT NOT YET IMPLEMENTED
GASB Statement No. 68 replaces the requirements of GASB Statement No. 27, Accounting for Pensions
by State and Local Governmental Employers, and Statement No. 50, Pension Disclosures, as they relate
to governments that provide pensions through pension plans administered as trusts or similar
arrangements that meet certain criteria. GASB Statement No. 68 requires governments providing defined
benefit pensions to recognize their long-term obligation for pension benefits as a liability for the first
time, and to more comprehensively and comparably measure the annual costs of pension benefits.
NOTE 14 – SUBSEQUENT EVENT
During the year ended December 31, 2012, the City technically defaulted on the outstanding Monticello
Telecommunications Revenue Bonds, Series 2008 due to lack of payment of a regularly scheduled interest
payment on this issue.
On June 13, 2013, the City Council approved a term sheet for settlement of claims that the trustee and
bondholders may have related to the Monticello Telecommunication Revenue Bonds, Series 2008. The
settlement needs approval of the bondholders of at least 90 percent of the aggregate principal amount of
outstanding bonds and 90 percent of all bondholders who have held bonds at any time since the bond issuance.
The Minnesota Fourth Judicial District Court approved the settlement on January 28, 2014, and the
settlement needs to be approved by the United States District Court for the District of Minnesota before it will
be finalized. The potential settlement agreement will require the City to pay no more than $5,750,000 of the
total $26,445,000 outstanding payable on these bonds at December 31, 2013. The City will also release any
funds remaining in the trust accounts held under the bond’s indenture to bondholders under the terms of
this settlement.
REQUIRED SUPPLEMENTARY INFORMATION
StatutoryStatutoryUnfunded
Value ofAccrued(Funded)
Plan AssetsLiability (SAL)SAL
740,263$ 1,346,363$ (606,100)$
1,010,161 1,153,913 (143,752)
1,136,892 1,190,292 (53,400)
1,127,049 1,220,891 (93,842)
1,046,960 1,031,472 15,488
1,114,949 965,425 149,524
N/A – Not Available
UnfundedUnfunded
ActuarialActuarialActuarialLiability as a
AccruedValue ofAccruedCoveredPercentage of
LiabilityPlan AssetsLiabilityPayrollPayroll
302,787$ –$ 302,787$ – %3,080,457$ 9.83%
362,290 – 362,290 – %3,108,685 11.65%
Note:
92.3%
101.5%
Schedule of Funding Progress
2013115.5%
January 1, 2011
Ratio
CITY OF MONTICELLO
Required Supplementary Information
Monticello Fire Department Relief Association
Schedule of Funding Progress
City of Monticello Other Post-Employment Benefits Plan
Ratio
2010
Date
2008
2009
Actuarial
2011
2012
Funded
55.0%
87.5%
95.5%
TheMonticelloVolunteerFiremen’sReliefAssociationiscomprisedofvolunteers;therefore,therearenopayroll
expenditures (i.e. there are no covered payroll percentage calculations).
Valuation
Date
Funded
January 1, 2008
Valuation
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BUDGETARY COMPARISON SCHEDULES
Original andOver (Under)
Final BudgetActualBudget
Revenue
Property taxes5,559,500$ 5,605,102$ 45,602$
Special assessments300 22,351 22,051
Franchise taxes216,500 216,500 –
Licenses and permits271,480 331,711 60,231
Intergovernmental revenue
Fire department aid70,000 110,092 40,092
State police aid60,700 65,767 5,067
State highway aid101,669 107,173 5,504
County/regional grants45,000 82,858 37,858
Other grants and aids6,740 6,741 1
Total intergovernmental revenue284,109 372,631 88,522
Charges for services
Animal impound fees30,000 29,024 (976)
Garbage charge51,860 16,653 (35,207)
Development cost reimbursement– 487 487
Inspection fees600 636 36
Other189,475 198,875 9,400
Total charges for services271,935 245,675 (26,260)
Fines100 1,725 1,625
Investment earnings (net of market value adjustment)110,800 (52,136) (162,936)
Miscellaneous revenue
Rents14,000 21,668 7,668
Other58,245183,719125,474
Total miscellaneous revenue72,245 205,387 133,142
Total revenue6,786,969 6,948,946 161,977
Expenditures
General government
Mayor and City Council
Personal services40,500 39,685 (815)
Other services and charges13,425 14,011 586
Total Mayor and City Council53,925 53,696 (229)
(continued)
CITY OF MONTICELLO
General Fund
Schedule of Revenue, Expenditures, and Changes in Fund Balances
Budget and Actual
Year Ended December 31, 2013
-53-
Original andOver (Under)
Final BudgetActualBudget
Expenditures (continued)
General government (continued)
Administrative
Personal services219,192 214,818 (4,374)
Supplies300 298 (2)
Other services and charges20,800 45,611 24,811
Total administrative240,292 260,727 20,435
Elections
Personal services222 – (222)
Other services and charges2,920 2,425 (495)
Total elections3,142 2,425 (717)
Finance
Personal services305,325 282,224 (23,101)
Supplies1,850 2,540 690
Other services and charges31,350 41,749 10,399
Total finance338,525 326,513 (12,012)
Audit40,000 47,823 7,823
Assessing51,215 49,664 (1,551)
Legal51,200 46,905 (4,295)
Human resources
Personal services77,990 78,362 372
Other services and charges14,250 14,705 455
Total human resources92,240 93,067 827
Planning and zoning
Personal services106,328 108,269 1,941
Professional services56,500 90,144 33,644
Other services and charges5,300 22,553 17,253
Total planning and zoning168,128 220,966 52,838
Data processing
Personal services34,704 36,004 1,300
Supplies25,90013,958(11,942)
Professional services57,850 17,960 (39,890)
Other services and charges40,055 27,652 (12,403)
Total data processing158,509 95,574 (62,935)
(continued)
CITY OF MONTICELLO
General Fund
Schedule of Revenue, Expenditures, and Changes in Fund Balances
Budget and Actual (continued)
Year Ended December 31, 2013
-54-
Original andOver (Under)
Final BudgetActualBudget
Expenditures (continued)
General government (continued)
City hall
Personal services63,506 111,633 48,127
Supplies20,000 12,218 (7,782)
Professional services73,500 38,535 (34,965)
Other services and charges77,355 53,120 (24,235)
Total city hall234,361 215,506 (18,855)
Office facility
Supplies1,000 452 (548)
Other services and charges18,200 14,903 (3,297)
Total office facility19,200 15,355 (3,845)
Insurance
Personal services25,000 54,671 29,671
Other services and charges72,260 73,043 783
Total insurance97,260 127,714 30,454
Orderly annexation
Other services and charges830 (403) (1,233)
Total general government1,548,827 1,555,532 6,705
Public safety
Law enforcement1,150,290 1,151,042 752
Fire relief association70,000 109,592 39,592
Fire
Personal services117,732 118,073 341
Supplies35,650 42,317 6,667
Other services and charges74,889 61,754 (13,135)
Total fire228,271 222,144 (6,127)
Building inspections
Personal services234,746 229,818 (4,928)
Supplies6,750 4,659 (2,091)
Other services and charges22,140 16,530 (5,610)
Total building inspections263,636 251,007 (12,629)
Civil defense
Personal services– 1,221 1,221
Other services and charges1,925 8,486 6,561
Total civil defense1,925 9,707 7,782
(continued)
CITY OF MONTICELLO
General Fund
Schedule of Revenue, Expenditures, and Changes in Fund Balances
Budget and Actual (continued)
Year Ended December 31, 2013
-55-
Original andOver (Under)
Final BudgetActualBudget
Expenditures (continued)
Public safety (continued)
Animal control46,335 47,425 1,090
National Guard22,250 14,517 (7,733)
Total public safety1,782,707 1,805,434 22,727
Public works
Administration
Personal services178,845 97,647 (81,198)
Other services and charges46,125 16,235 (29,890)
Total administration224,970 113,882 (111,088)
Engineering
Personal services152,361 112,149 (40,212)
Professional services51,500 96,039 44,539
Other services and charges9,575 15,842 6,267
Total engineering213,436 224,030 10,594
Inspections
Personal services105,202 43,329 (61,873)
Other services and charges20,090 11,551 (8,539)
Total inspections125,292 54,880 (70,412)
Streets
Personal services421,439 371,891 (49,548)
Supplies147,975 167,790 19,815
Other services and charges156,185 149,345 (6,840)
Total streets 725,599 689,026 (36,573)
Ice and snow
Personal services132,215 128,679 (3,536)
Supplies85,000 79,182 (5,818)
Other services and charges2,300 2,691 391
Total ice and snow219,515 210,552 (8,963)
Shop and garage
Personal services88,919 98,443 9,524
Supplies39,000 44,182 5,182
Other services and charges55,850 44,116 (11,734)
Total shop and garage183,769 186,741 2,972
(continued)
CITY OF MONTICELLO
General Fund
Schedule of Revenue, Expenditures, and Changes in Fund Balances
Budget and Actual (continued)
Year Ended December 31, 2013
-56-
Original andOver (Under)
Final BudgetActualBudget
Expenditures (continued)
Public works (continued)
Stormwater maintenance
Personal services21,558 9,331 (12,227)
Other services and charges9,650 2,733 (6,917)
Total stormwater maintenance31,208 12,064 (19,144)
Parking lots
Personal services1,701 1,002 (699)
Other services and charges7,600 1,964 (5,636)
Total parking lots9,301 2,966 (6,335)
Street lighting
Personal services– 2,795 2,795
Other services and charges216,500 203,210 (13,290)
Total street lighting216,500 206,005 (10,495)
Total public works1,949,590 1,700,146 (249,444)
Sanitation
Personal services1,034 – (1,034)
Other services and charges516,526 505,996 (10,530)
Total sanitation517,560 505,996 (11,564)
Culture and recreation
Community celebrations3,300 1,187 (2,113)
Museum– 371 371
Senior center
Personal services545 797 252
Other services and charges90,47589,423(1,052)
Total senior center91,020 90,220 (800)
Transit – River Rider3,000 – (3,000)
Ice arena75,000 75,000 –
Parks
Personal services398,271 361,157 (37,114)
Supplies111,775 105,515 (6,260)
Other services and charges95,730 100,894 5,164
Total parks605,776 567,566 (38,210)
(continued)
CITY OF MONTICELLO
General Fund
Schedule of Revenue, Expenditures, and Changes in Fund Balances
Budget and Actual (continued)
Year Ended December 31, 2013
-57-
Original andOver (Under)
Final BudgetActualBudget
Expenditures (continued)
Culture and recreation (continued)
NSP ball fields42,300 25,517 (16,783)
Shade tree
Personal services32,542 41,621 9,079
Supplies2,450 9,260 6,810
Other services and charges12,800 2,595 (10,205)
Total shade tree47,792 53,476 5,684
Library
Personal services9,692 8,260 (1,432)
Supplies1,900 2,001 101
Other services and charges28,505 25,135 (3,370)
Total library40,097 35,396 (4,701)
Capital outlay– 5,049 5,049
Total culture and recreation908,285 853,782 (54,503)
Total expenditures6,706,969 6,420,890 (286,079)
Excess of revenues over expenditures80,000 528,056 448,056
Other financing sources (uses)
Transfers (out)(80,000) (92,000) (12,000)
Net change in fund balances–$ 436,056 436,056$
Fund balances
Beginning of year 3,478,507
End of year 3,914,563$
CITY OF MONTICELLO
General Fund
Schedule of Revenue, Expenditures, and Changes in Fund Balances
Budget and Actual (continued)
Year Ended December 31, 2013
-58-
Original andOver (Under)
Final BudgetActualBudget
Revenue
Property taxes1,170,000$ 1,181,335$ 11,335$
Charges for services
Membership dues and fees1,305,200 1,292,608 (12,592)
Interest earnings9,000 (5,287) (14,287)
Miscellaneous14,000 16,7432,743
Total revenue2,498,200 2,485,399 (12,801)
Expenditures
Current
Culture and recreation
Personal services976,660 969,867 (6,793)
Supplies246,700 278,300 31,600
Professional services61,500 54,637 (6,863)
Advertising12,000 3,940 (8,060)
Repairs and maintenance40,000 34,780 (5,220)
Insurance45,765 28,003 (17,762)
Utilities175,500 189,298 13,798
Telephone15,800 4,238 (11,562)
Equipment and other rental4,100 3,324 (776)
Other35,175 49,843 14,668
Capital outlay110,000 77,465 (32,535)
Total expenditures1,723,200 1,693,695 (29,505)
Excess of revenues over expenditures775,000 791,704 16,704
Other financing sources (uses)
Transfers in100,000 175,00075,000
Transfers (out)(875,000) (875,000) –
Total other financing sources (uses)(775,000) (700,000) 75,000
Net change in fund balances–$ 91,704 91,704$
Fund balance
Beginning of year179,500
End of year 271,204$
CITY OF MONTICELLO
Community Center Special Revenue Fund
Schedule of Revenue, Expenditures, and Changes in Fund Balances
Budget and Actual
Year Ended December 31, 2013
-59-
Original andOver (Under)
Final BudgetActualBudget
Revenue
Tax increments681,240$ 965,935$ 284,695$
Charges for services
Initiation/application fees– 25,404 25,404
Interest earnings77,700 (3,964) (81,664)
Miscellaneous9,900 278,642 268,742
Total revenue768,840 1,266,017 497,177
Expenditures
Current
Economic development
Personal services110,407 3,116 (107,291)
Professional services23,973 63,669 39,696
Developer payments288,465 442,839 154,374
Land held for resale market value adjustment– 55,800 55,800
Other34,228 359,038 324,810
Total expenditures457,073 924,462 467,389
Excess of revenues over expenditures311,767 341,555 29,788
Other financing (uses)
Transfers in80,00092,00012,000
Transfers (out)(319,403) (779,804) (460,401)
Total other financing sources (uses)(239,403) (687,804) (448,401)
Net change in fund balances72,364$ (346,249) (418,613)$
Fund balance
Beginning of year7,461,554
End of year 7,115,305$
CITY OF MONTICELLO
Economic Development Authority Special Revenue Fund
Schedule of Revenue, Expenditures, and Changes in Fund Balances
Budget and Actual
Year Ended December 31, 2013
-60-
CITY OF MONTICELLO
Notes to the Required Supplementary Information
December 31, 2013
-61-
Budgetary Information
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 adopts the proposed
budget as amended and adjusted by the City Council and certifies the proposed property tax levy
to the county auditor according to Minnesota Statutes.
B. Public hearings are conducted at the City Council’s chambers in the Municipal Building.
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 major 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 the 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.
SUPPLEMENTAL INFORMATION
(This page left blank intentionally)
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NONMAJOR GOVERNMENTAL FUNDS
SPECIAL REVENUE FUNDS
Minnesota Investment – used to account for the administration of loans to local business while
following state and federal guidelines.
Cemetery – used to account for the activities of the cemetery operations.
CDBG Revitalization – used to account for the funding and activities of the CDBG Revitalization Grant.
CAPITAL PROJECTS FUNDS
Park Pathway Dedication – used to account for the updating and maintaining of the City’s pathway
system, as well as the assignment of funds for future parks and pathways within the City.
Water Access – used to account for fees collected on building permits for new construction and lot
development for major improvements of the City’s water system.
Storm Sewer Access – used to account for fees collected on building permits for new construction and
lot development for the major improvement of the City’s storm sewer.
City Street Reconstruction – used to account for the annual improvements made to the City’s
infrastructure based on an annual reconstruction schedule.
Street Lighting Improvement – used to account for the activities of incorporating street lighting into
designated areas of the City, as pre-determined by the county.
MinnesotaCDBG –
InvestmentCemeteryRevitalization
Assets
Cash and investments1,051,218$ 17,882$ 424$
Receivables
Current taxes– – –
Accounts – – –
Notes receivable– – 277,644
Prepaid items– 1,678 –
Total assets1,051,218$ 19,560$ 278,068$
Liabilities
Accounts and contracts payable
–$ 3,849$ –$
Deferred inflows of resources
Unavailable revenue – notes receivable– – 277,644
Fund balances
Special revenue funds
Nonspendable– 1,678 –
Restricted for economic development1,051,218 – 424
Restricted for perpetual care– 14,033 –
Capital projects funds
Assigned for park improvements– – –
Assigned for capital improvements– – –
Total fund balances 1,051,218 15,711 424
Total liabilities, deferred inflows of resources,
and fund balances1,051,218$ 19,560$ 278,068$
Special Revenue Funds
as of December 31, 2013
CITY OF MONTICELLO
Nonmajor Governmental Funds
Combining Balance Sheet
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ParkStreet
PathwayStorm SewerCity StreetLighting
DedicationWater AccessAccessReconstructionImprovementTotals
973,573$ –$ 1,122,181$ 1,665,939$ 715,195$ 5,546,412$
– – – 166 – 166
– – – – 77,089 77,089
– – – – – 277,644
– – – – – 1,678
973,573$ –$ 1,122,181$ 1,666,105$ 792,284$ 5,902,989$
140$ –$ –$ –$ –$ 3,989$
– – – – – 277,644
– – – – – 1,678
– – – – – 1,051,642
– – – – – 14,033
973,433 – – – – 973,433
– – 1,122,181 1,666,105 792,284 3,580,570
973,433 – 1,122,181 1,666,105 792,284 5,621,356
973,573$ –$ 1,122,181$ 1,666,105$ 792,284$ 5,902,989$
Capital Projects Funds
-64-
MinnesotaCDBG –
InvestmentCemeteryRevitalization
Revenue
Property taxes–$ –$ –$
Franchise taxes– – –
Charges for services– 12,913 –
Other
Investment earnings (net of market value adjustment)(14,840) (317) (6)
Miscellaneous– 4 –
Total revenue(14,840) 12,600 (6)
Expenditures
Current
General government– 16,242 –
Public works– – –
Culture and recreation– – –
Capital outlay
Culture and recreation– – –
Debt service
Interest and fiscal charges– – –
Total expenditures– 16,242 –
Excess (deficiency) of revenue
over expenditures(14,840) (3,642) (6)
Other financing sources (uses)
Transfers in– – –
Transfers (out)– – –
Total other financing sources (uses)– – –
Change in fund balances(14,840) (3,642) (6)
Fund balances
Beginning of year1,066,058 19,353 430
End of year 1,051,218$ 15,711$ 424$
Special Revenue Funds
CITY OF MONTICELLO
Nonmajor Governmental Funds
Combining Statement of Revenue, Expenditures, and Changes in Fund Balances
Year Ended December 31, 2013
-65-
ParkStreet
PathwayStorm SewerCity StreetLighting
DedicationWater AccessAccessReconstructionImprovementTotals
–$ –$ –$ 2,346$ –$ 2,346$
– – – – 86,003 86,003
– 48,735 – – – 61,648
(7,851) (650) (17,598) (24,620) (10,106) (75,988)
– – – – – 4
(7,851) 48,085 (17,598) (22,274) 75,897 74,013
– – – – – 16,242
– 266 7,164 – – 7,430
2,975 – – – – 2,975
205,470 – – – – 205,470
3,025 – – – – 3,025
211,470 266 7,164 – – 235,142
(219,321) 47,819 (24,762) (22,274) 75,897 (161,129)
750,000 – – – – 750,000
– (70,729) (321,800) (219,000) – (611,529)
750,000 (70,729) (321,800) (219,000) – 138,471
530,679 (22,910) (346,562) (241,274) 75,897 (22,658)
442,754 22,910 1,468,743 1,907,379 716,387 5,644,014
973,433$ –$ 1,122,181$ 1,666,105$ 792,284$ 5,621,356$
Capital Projects Funds
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-67-
INTERNAL SERVICE FUNDS
Information Technology – used to account for the financing of the City’s information technology of all
departments and related costs.
Central Equipment – used to account for the financing and purchase of equipment of all departments
and related costs.
InformationCentral
TechnologyEquipmentTotals
Assets
Current assets
Cash and investments – unrestricted34,528$ 899,118$ 933,646$
Capital assets
Furniture and equipment17,013 – 17,013
Machinery and equipment– 95,000 95,000
Less accumulated depreciation(1,631) (10,076) (11,707)
Total capital assets15,382 84,924 100,306
Total assets49,910$ 984,042$ 1,033,952$
Liabilities and Net Position
Current liabilities
Accounts payable12,567$ –$ 12,567$
Accrued interest payable– 510 510
Bonds payable due within one year– 60,000 60,000
Total current liabilities12,567 60,510 73,077
Long-term liabilities
Bonds payable– 385,000 385,000
Total liabilities12,567 445,510 458,077
Net position (deficit)
Net investment in capital assets15,382 (10,076) 5,306
Unrestricted21,961 548,608 570,569
Total net position37,343 538,532 575,875
Total liabilities and net position49,910$ 984,042$ 1,033,952$
CITY OF MONTICELLO
Internal Service Funds
Combining Statement of Net Position
December 31, 2013
-68-
InformationCentral
TechnologyEquipmentTotals
Operating revenue
Charges to other funds125,000$ 62,535$ 187,535$
Other revenue23 – 23
Total operating revenue125,023 62,535 187,558
Operating expenses
Utilities38,334 – 38,334
Supplies and maintenance7,473 – 7,473
Repairs and maintenance280 – 280
Depreciation1,631 10,076 11,707
Professional fees35,095 4,566 39,661
Miscellaneous34,707 – 34,707
Total operating expenses117,520 14,642 132,162
Operating income7,503 47,893 55,396
Nonoperating revenue (expense)
Investment earnings (net of market value adjustment)(160) (5,726) (5,886)
Interest expense– (4,298) (4,298)
Total nonoperating revenue (expense)(160) (10,024) (10,184)
Income before transfers7,343 37,869 45,212
Transfers
Transfers in30,000 500,663 530,663
Change in net position37,343 538,532 575,875
Net position
Beginning of year– – –
End of year37,343$ 538,532$ 575,875$
CITY OF MONTICELLO
Internal Service Funds
Combining Statement of Revenue, Expenses, and Changes in Net Position
Year Ended December 31, 2013
-69-
InformationCentral
TechnologyEquipmentTotals
Cash flows from operating activities
Receipts from interfund services provided125,023$ 62,535$ 187,558$
Cash payments to suppliers(103,322) (4,566) (107,888)
Net cash flows from operating activities21,701 57,969 79,670
Cash flows from noncapital financing activities
Transfers in30,000 500,663 530,663
Cash flows from capital and related financing activities
Acquisition and construction of capital assets(17,013) (95,000) (112,013)
Proceeds from issuance of long-term debt– 500,000 500,000
Principal paid on long-term debt– (55,000) (55,000)
Interest paid on long-term debt– (3,788) (3,788)
Net cash flows from capital and related
financing activities(17,013) 346,212 329,199
Cash flows from investing activities
Interest on investments(160) (5,726) (5,886)
Net increase (decrease) in cash and
cash equivalents34,528 899,118 933,646
Cash and cash equivalents
Beginning of year– – –
End of year34,528$ 899,118$ 933,646$
Reconciliation of operating income to net cash flows
from operating activities
Operating income7,503$ 47,893$ 55,396$
Adjustments to reconcile operating income to net
cash flows from operating activities
Depreciation1,631 10,076 11,707
Change in assets and liabilities
Increase in accounts payable12,567 – 12,567
Net cash flows from operating activities21,701$ 57,969$ 79,670$
CITY OF MONTICELLO
Internal Service Funds
Combining Statement of Cash Flows
Year Ended December 31, 2013
-70-
STATISTICAL SECTION
Page
Contents:
Financial Trends 72
Revenue Capacity 84
Debt Capacity 94
Demographic and Economic Information101
Operating Indicators 103
Theseschedulescontainserviceandinfrastructuredatatohelpthereaderunderstandhowthe
informationintheCity’sfinancialreportrelatestotheservicestheCityprovides,andtheactivitiesit
performs.
Sources: Unless otherwise noted, the information in these schedules is derived from the CAFR for the relevant year.
STATISTICAL SECTION
ThispartoftheCityofMonticello,Minnesota’s(theCity)comprehensiveannualfinancialreport(CAFR)presentsdetailed
informationasacontextforunderstandingwhattheinformationinthefinancialstatements,notedisclosures,andrequired
supplementary information says about the City’s overall financial health.
TheseschedulescontaintrendinformationtohelpthereaderunderstandhowtheCity’sfinancial
performance and well-being have changed over time.
TheseschedulescontaininformationtohelpthereaderassesstheCity’smostsignificantrevenue
source, including the property tax and utility revenue.
TheseschedulespresentinformationtohelpthereaderassesstheaffordabilityoftheCity’scurrent
levels of outstanding debt and the City’s ability to issue additional debt in the future.
Theseschedulesofferdemographicandeconomicindicatorstohelpthereaderunderstandthe
environment within which the City’s financial activities take place.
-71-
2004200520062007
Governmental activities
Net investment in capital assets 8,972,497$ 7,009,622$ 7,009,622$ 12,476,536$
Restricted– – – 31,517,792
Unrestricted36,413,286 45,136,460 56,949,749 24,543,501
Total governmental activities net position 45,385,783$ 52,146,082$ 63,959,371$ 68,537,829$
Business-type activities
Net investment in capital assets 32,355,086$ 35,077,391$ 35,749,380$ 33,971,151$
Restricted– – – –
Unrestricted4,256,846 4,740,491 5,437,867 6,441,470
Total business-type activities net position 36,611,932$ 39,817,882$ 41,187,247$ 40,412,621$
Primary government
Net investment in capital assets 41,327,583$ 42,087,013$ 42,759,002$ 46,447,687$
Restricted– – – 31,517,792
Unrestricted40,670,132 49,876,951 62,387,616 30,984,971
Total primary government net position 81,997,715$ 91,963,964$ 105,146,618$ 108,950,450$
Note:
CITY OF MONTICELLO
Fiscal Year
(Accrual Basis of Accounting)
Last Ten Fiscal Years
Net Position by Component
Infiscal2013and2012,theCityhadachangeinaccountingprinciple,achangeinfundstructure,andpriorperiod
adjustments. Prior years were not adjusted to reflect these changes.
-72-
200820092010201120122013
27,584,763$ 33,712,370$ 31,901,676$ 38,242,040$ 40,525,009$ 44,268,757$
22,074,427 17,688,193 18,337,866 16,894,936 13,061,044 18,118,070
28,445,230 28,183,161 26,876,421 24,758,269 25,119,107 13,487,299
78,104,420$ 79,583,724$ 77,115,963$ 79,895,245$ 78,705,160$ 75,874,126$
31,375,890$ 29,910,696$ 28,556,355$ 25,031,043$ 23,698,091$ 20,496,832$
19,350 19,350 19,350 19,350 19,350 –
4,529,830 2,846,018 6,363,148 6,901,353 7,642,046 6,463,638
35,925,070$ 32,776,064$ 34,938,853$ 31,951,746$ 31,359,487$ 26,960,470$
58,960,653$ 63,623,066$ 60,458,031$ 63,273,083$ 64,233,100$ 64,765,589$
22,093,777 17,707,543 18,357,216 16,914,286 13,080,394 18,118,070
32,975,060 31,029,179 33,239,569 31,659,622 32,761,153 19,950,937
114,029,490$ 112,359,788$ 112,054,816$ 111,846,991$ 110,074,647$ 102,834,596$
-73-
2004200520062007
Expenses
Governmental activities
General government 1,528,281$ 1,907,352$ 3,639,497$ 1,844,320$
Public safety1,649,090 1,551,098 2,856,573 1,693,116
Public works438,413 5,990,719 5,318,865 4,559,460
Sanitation2,798,883 492,446 474,045 509,208
Culture and recreation410,768 2,210,729 2,694,970 2,661,915
Economic development969,229 657,258 2,061,331 769,584
Interest and fiscal charges1,414,737 1,733,933 2,378,871 2,193,840
Total governmental activities expenses9,209,401 14,543,535 19,424,152 14,231,443
Business-type activities
Water 865,379 939,449 913,638 973,375
Sewage2,083,841 2,017,993 2,095,124 2,000,610
Liquor 3,083,062 3,172,741 3,285,082 644,857
Cemetery 32,275 33,717 71,044 41,312
Fiber optics– – – 84,594
Deputy registrar – – – –
Total business-type activities expenses6,064,557 6,163,900 6,364,888 3,744,748
Total primary government expenses 15,273,958$ 20,707,435$ 25,789,040$ 17,976,191$
Program revenues
Government activities
Charges for services
General government 629,942$ 683,599$ 974,186$ 695,117$
Public safety889,041 912,300 1,030,842 93,138
Public works2,085,478 2,692,336 1,186,670 1,994,067
Sanitation98,602 863,857 129,057 –
Culture and recreation756,359 126,418 1,019,286 1,015,869
Economic development– 146,715 115,616 6,768
Operating grants and contributions337,688 381,420 281,531 160,147
Capital grants and contributions4,059,034 2,135,687 12,153,185 3,616,870
Total governmental activities program revenues8,856,144 7,942,332 16,890,373 7,581,976
Business-type activities
Charges for services
Water 585,699 701,346 742,146 867,873
Sewage918,309 969,996 1,043,208 1,196,983
Liquor 3,412,809 3,540,572 3,619,236 1,002,933
Cemetery 32,141 32,834 29,265 28,830
Fiber optics– – – –
Deputy registrar – – – –
Capital grants and contributions1,303,527 4,310,691 2,188,675 482,412
Total business-type activities program revenues6,252,485 9,555,439 7,622,530 3,579,031
Total primary government program revenues 15,108,629$ 17,497,771$ 24,512,903$ 11,161,007$
CITY OF MONTICELLO
Changes in Net Position
Last Ten Fiscal Years
(Accrual Basis of Accounting)
Fiscal Year
-74-
200820092010201120122013
1,572,389$ 1,780,972$ 2,065,463$ 2,111,710$ 2,103,737$ 1,623,727$
1,792,351 2,849,272 1,766,712 1,788,595 1,819,378 1,884,981
4,634,167 3,827,501 3,579,291 4,838,544 5,045,729 5,163,461
514,208 547,160 534,903 495,693 500,037 487,268
2,700,683 2,828,152 2,609,429 1,724,348 2,693,598 2,875,260
510,126 842,819 2,647,687 1,199,936 803,594 1,005,813
2,136,872 1,673,431 1,464,012 1,248,716 1,298,869 235,265
13,860,796 14,349,307 14,667,497 13,407,542 14,264,942 13,275,775
975,846 1,018,098 936,718 1,167,572 1,118,789 1,009,600
2,085,485 2,074,447 2,495,976 2,340,555 2,480,657 2,466,660
620,743 669,940 637,574 658,999 662,002 689,559
29,267 27,530 26,659 28,849 26,132 –
1,590,237 2,792,813 3,815,377 5,702,480 5,228,428 5,240,871
– – – – – 293,531
5,301,578 6,582,828 7,912,304 9,898,455 9,516,008 9,700,221
19,162,374$ 20,932,135$ 22,579,801$ 23,305,997$ 23,780,950$ 22,975,996$
523,228$ 443,976$ 491,304$ 521,182$ 619,992$ 147,244$
99,812 155,036 96,293 202,237 179,540 163,366
1,544,140 744,241 1,556,098 508,077 383,066 544,404
– 167,119 165,387 52,304 53,077 16,653
1,060,147 1,119,204 1,144,493 1,218,580 1,130,463 1,307,149
15,875 155,769 – – – –
159,192 269,492 424,845 253,127 252,784 293,710
948,340 2,067,509 4,124,271 2,083,511 1,841,915 1,079,738
4,350,734 5,122,346 8,002,691 4,839,018 4,460,837 3,552,264
973,776 1,019,390 828,635 1,078,133 1,304,923 1,214,570
1,307,064 1,371,776 1,470,537 1,712,058 1,850,919 1,981,491
1,059,479 1,043,256 1,174,767 1,151,171 1,214,745 1,318,276
24,475 19,995 8,620 22,390 19,810 –
– – 456,820 1,610,258 1,747,587 1,606,720
– – – – – 456,285
106,787 – – – – –
3,471,581 3,454,417 3,939,379 5,574,010 6,137,984 6,577,342
7,822,315$ 8,576,763$ 11,942,070$ 10,413,028$ 10,598,821$ 10,129,606$
(continued)
-75-
2004200520062007
Net (expense) revenue
Governmental activities (353,257)$ (6,601,203)$ (2,533,779)$ (6,649,467)$
Business-type activities187,928 3,391,539 1,257,642 (165,717)
Total primary government net expense (165,329)$ (3,209,664)$ (1,276,137)$ (6,815,184)$
General revenues and other changes in
net position
Governmental activities
Property taxes 7,670,666$ 7,476,106$ 7,253,560$ 7,242,838$
Franchise taxes– – – –
Unrestricted grants and contributions99,667 200,000 130,000 288,940
Investment earnings (net of market value adjustment)728,274 985,497 2,093,877 2,170,025
Gain on sale of assets– – – –
Other general revenues2,860,728 2,799,703 4,619,629 528,193
Transfers(1,326,569) 250,000 250,000 997,929
Total governmental activities10,032,766 11,711,306 14,347,066 11,227,925
Business-type activities
Investment earnings125,245 89,987 334,623 326,356
Miscellaneous23,770 (25,576) 27,100 62,664
Transfers1,326,569 (250,000) (250,000) (997,929)
Total business-type activities1,475,584 (185,589) 111,723 (608,909)
Total primary government 11,508,350$ 11,525,717$ 14,458,789$ 10,619,016$
Change in net position
Governmental activities 9,679,509$ 5,110,103$ 11,813,287$ 4,578,458$
Business-type activities1,663,512 3,205,950 1,369,365 (774,626)
Total primary government 11,343,021$ 8,316,053$ 13,182,652$ 3,803,832$
Note:
CITY OF MONTICELLO
Changes in Net Position
Last Ten Fiscal Years (continued)
(Accrual Basis of Accounting)
Fiscal Year
Infiscal2013and2012,theCityhadachangeinaccountingprinciple,achangeinfundstructure,andhadpriorperiod
adjustments. Prior years were not adjusted to reflect these changes.
-76-
200820092010201120122013
(9,510,062)$ (9,226,961)$ (6,664,806)$ (8,568,524)$ (9,804,105)$ (9,723,511)$
(1,829,997) (3,128,411) (3,972,925) (4,324,445) (3,378,024) (3,122,879)
(11,340,059)$ (12,355,372)$ (10,637,731)$ (12,892,969)$ (13,182,129)$ (12,846,390)$
8,450,599$ 8,821,568$ 8,260,705$ 8,451,149$ 8,746,348$ 8,927,164$
– 48,517 371,258 341,362 339,518 320,640
158,340 406,735 37,665 19,359 38,618 65,228
1,461,658 770,178 859,583 1,467,780 767,722 (189,128)
– 41,173 – – 11,575 3,885
233,326 366,961 442,091 354,501 540,272 489,782
371,245 251,133 (5,774,257) 713,655 (2,420,489) 278,500
10,675,168 10,706,265 4,197,045 11,347,806 8,023,564 9,896,071
547,703 188,178 236,131 495,484 264,589 (117,175)
136,356 42,360 125,326 1,555,509 100,687 65,468
(371,245) (251,133) 5,774,257 (713,655) 2,420,489 (278,500)
312,814 (20,595) 6,135,714 1,337,338 2,785,765 (330,207)
10,987,982$ 10,685,670$ 10,332,759$ 12,685,144$ 10,809,329$ 9,565,864$
1,165,106$ 1,479,304$ (2,467,761)$ 2,779,282$ (1,780,541)$ 172,560$
(1,517,183) (3,149,006) 2,162,789 (2,987,107) (592,259) (3,453,086)
(352,077)$ (1,669,702)$ (304,972)$ (207,825)$ (2,372,800)$ (3,280,526)$
-77-
2004200520062007
General Fund
Reserved 194,172$ 388,527$ 405,819$ 430,294$
Unreserved4,576,072 4,735,864 5,014,094 5,131,193
Nonspendable– – – –
Restricted– – – –
Committed – – – –
Assigned – – – –
Unassigned – – – –
Total General Fund4,770,244$ 5,124,391$ 5,419,913$ 5,561,487$
All other governmental funds
Reserved 14,144,908$ 14,754,923$ 17,912,418$ 27,072,957$
Unreserved, reported in
Special revenue funds9,080,687 18,425,893 14,946,443 7,554,334
Capital projects funds(94,945) 9,261,188 (1,805,372) (630,214)
Nonspendable– – – –
Restricted– – – –
Committed – – – –
Assigned – – – –
Unassigned
Special revenue funds– – – –
Capital projects funds– – – –
Total all other governmental funds23,130,650$ 42,442,004$ 31,053,489$ 33,997,077$
Note 1:
Note 2:
(Modified Accrual Basis of Accounting)
Fiscal Year
CITY OF MONTICELLO
Fund Balances of Governmental Funds
Last Ten Fiscal Years
The City made a fund structure change in fiscal 2013. Prior year data has not been changed to reflect this change.
TheCityimplementedGASBStatementNo.54infiscal2011.Prioryeardatahasnotbeenrestatedasaresultof
this change.
-78-
200820092010201120122013
359,303$ 392,541$ 336,286$ –$ –$ –$
5,819,249 4,705,092 4,644,748 – – –
– – – 386,616 342,380 258,100
– – – – – –
– – – 3,374,200 – –
– – – – – –
– – – 649,821 3,136,127 3,656,463
6,178,552$ 5,097,633$ 4,981,034$ 4,410,637$ 3,478,507$ 3,914,563$
16,663,801$ 10,280,326$ 7,884,431$ –$ –$ –$
14,191,473 18,451,828 18,324,689 – – –
(1,839,478) (2,124,391) (1,532,220) – – –
– – – 1,299,057 197,123 1,822,926
– – – 22,140,662 21,480,938 10,928,985
– – – 2,662,124 – –
– – – 9,138,626 8,655,488 6,485,727
– – – (141,890) – –
– – – (1,435,666) – –
29,015,796$ 26,607,763$ 24,676,900$ 33,662,913$ 30,333,549$ 19,237,638$
-79-
2004200520062007
Revenues
Taxes
General property taxes 6,734,814$ 6,722,393$ 6,461,748$ 6,190,599$
Tax increments935,852 753,713 791,812 824,714
Special assessments2,098,499 3,341,537 2,006,519 3,112,374
Franchise taxes– – – –
Licenses and permits797,458 956,300 758,718 627,751
Intergovernmental689,891 373,929 937,076 1,764,633
Charges for services3,223,012 4,014,956 2,796,871 2,888,981
Fines and forfeits– 4,000 1,750 5,027
Earnings on investments728,274 985,497 2,093,877 2,170,025
Miscellaneous1,979,075 3,165,372 4,564,660 372,502
Total revenues17,186,875 20,317,697 20,413,031 17,956,606
Expenditures
General government1,656,207 1,544,446 1,743,716 1,899,097
Public safety1,608,652 1,666,869 2,760,090 1,603,331
Public works2,332,202 4,635,519 3,594,844 1,951,712
Sanitation410,768 492,446 474,045 509,208
Culture and recreation2,395,015 2,361,302 2,271,216 2,214,108
Economic development969,229 637,777 2,056,055 772,852
Capital outlay2,649,316 12,137,740 13,074,965 6,430,421
Debt service
Principal4,096,539 1,911,126 3,407,655 3,388,382
Interest and paying agent fees1,460,183 1,426,367 2,373,438 2,256,311
Total expenditures17,578,111 26,813,592 31,756,024 21,025,422
Excess of revenues over (under) expenditures(391,236) (6,495,895) (11,342,993) (3,068,816)
Other financing sources (uses)
Transfers in5,859,535 4,128,010 8,181,372 5,202,051
Transfers out(5,609,535) (3,878,010) (7,931,372) (4,204,122)
Debt issued3,130,222 25,150,000 – 5,137,903
Premium on debt issued– 761,396 – 83,710
(Discount) on debt issued– – – –
Refunded bonds redeemed– – – –
Deferred amortized gain (loss) on refunding– – – –
Sale of land held for resale– – – (103,084)
Sale of capital assets– – – 37,520
Total other financing sources (uses)3,380,222 26,161,396 250,000 6,153,978
Net change in fund balances 2,988,986$ 19,665,501$ (11,092,993)$ 3,085,162$
Debt service as a percentage of noncapital expenditures 37.2%22.7%30.9%38.7%
Fiscal Year
CITY OF MONTICELLO
Changes in Fund Balances of Governmental Funds
Last Ten Fiscal Years
(Modified Accrual Basis of Accounting)
Note: The City made a fund structure change in fiscal 2013. Prior year data has not been changed to reflect this change.
-80-
200820092010201120122013
7,233,582$ 7,502,844$ 7,319,154$ 7,294,635$ 8,234,086$ 7,985,695$
1,172,447 1,193,021 1,155,386 1,044,791 1,024,134 965,935
2,566,932 2,462,673 1,465,264 1,856,134 1,902,871 2,065,944
– 48,517 371,258 341,362 339,518 320,640
917,539 266,797 217,184 249,999 275,699 331,711
550,283 1,688,895 1,620,771 1,434,420 540,475 1,264,781
2,290,091 2,518,548 2,890,006 2,239,584 2,076,834 1,846,919
2,216 1,220 205 85 14,338 1,725
1,461,658 770,178 859,583 1,467,780 767,722 (183,242)
197,988 435,186 643,873 603,019 753,832 700,776
16,392,736 16,887,879 16,542,684 16,531,809 15,929,509 15,300,884
1,579,164 1,634,395 1,997,458 2,039,270 2,023,674 1,576,653
1,736,962 2,738,768 1,684,296 1,728,409 1,735,579 1,805,434
2,380,993 2,074,811 1,562,155 1,675,222 1,703,849 1,707,576
514,208 547,160 534,903 495,693 500,037 505,996
2,220,368 2,355,669 2,164,534 2,419,369 2,272,595 2,472,987
525,783 842,819 2,647,687 1,198,449 800,540 1,011,961
3,522,196 1,946,153 4,138,459 4,067,251 2,829,049 1,357,254
5,037,028 6,749,293 5,001,000 4,860,000 5,174,500 5,290,750
2,192,063 1,801,392 1,553,661 1,383,095 1,290,430 930,982
19,708,765 20,690,460 21,284,153 19,866,758 18,330,253 16,659,593
(3,316,029) (3,802,581) (4,741,469) (3,334,949) (2,400,744) (1,358,709)
16,818,090 10,172,878 4,687,126 5,710,819 9,990,120 6,906,770
(16,446,845) (9,921,745) (4,431,158) (4,997,164) (10,732,901) (7,158,933)
15,450,000 – 3,255,000 10,735,000 – –
– – – 301,910 – –
– – (19,530) – – –
(15,908,564) – (865,000) – – (10,690,000)
(384,432) – – – – –
74,650 – – – – –
2,575 62,496 67,569 – 11,575 12,428
(394,526) 313,629 2,694,007 11,750,565 (731,206) (10,929,735)
(3,710,555)$ (3,488,952)$ (2,047,462)$ 8,415,616$ (3,131,950)$ (12,288,444)$
44.7%45.6%38.2%39.5%41.4%42.1%
-81-
Fiscal YearProperty TaxFranchise TaxTotal
2004 7,670,666$ –$ 7,670,666$
2005 7,476,106 – 7,476,106
2006 7,253,560 – 7,253,560
2007 7,242,838 – 7,242,838
2008 8,450,599 – 8,450,599
20098,821,568 48,517 8,870,085
2010 8,260,705 371,258 8,631,963
2011 8,451,149 341,362 8,792,511
2012 8,746,348 339,518 9,085,866
2013 8,927,164 320,640 9,247,804
CITY OF MONTICELLO
General Governmental Tax Revenues by Source
Last Ten Fiscal Years
(Accrual Basis of Accounting)
-82-
GeneralTax
Fiscal YearProperty TaxIncrementsFranchise TaxTotal
20046,734,814$ 935,852$ –$ 7,670,666$
20056,722,393 753,713 – 7,476,106
20066,461,748 791,812 – 7,253,560
20076,190,599 824,714 – 7,015,313
20087,233,582 1,172,447 – 8,406,029
20097,502,844 1,193,021 48,517 8,744,382
20107,319,154 1,155,386 371,258 8,845,798
20117,294,635 1,044,791 341,362 8,680,788
20128,234,086 1,024,134 339,518 9,597,738
20137,985,695 965,935 320,640 9,272,270
CITY OF MONTICELLO
Governmental Funds Tax Revenues by Source
Last Ten Fiscal Years
(Modified Accrual Basis of Accounting)
-83-
Percentage of Total Net Tax Capacity Value
38.9 %59.3 %1.2 %0.6 %
41.5 56.7 1.3 0.6
41.8 56.5 1.2 0.5
42.8 55.0 1.1 1.1
43.0 54.6 1.0 1.4
41.8 55.5 1.0 1.7
35.4 62.0 1.1 1.4
31.9 65.5 1.2 1.4
23.6 74.3 1.2 1.0
25.4 72.5 1.3 0.9
*Tax capacity value does not include tax increment.
Note 1:
Note 2:
Source:
20134,824,117 13,793,916 239,129 164,609
CITY OF MONTICELLO
Tax Capacity Value and Estimated Market Value of Taxable Property
Last Ten Fiscal Years
Residential
Real Property
and
Agricultural
Fiscal Year
Property
70,132$
70,843
69,626
160,594
170,446 7,871,132
143,452$ 6,948,707$
2009
2005
229,016
2010
183,695
236,789 176,289
299,191
251,177 10,793,836
8,913,821 177,822
10,897,898
Property
PersonalCommercial
Property
7,085,105
2011
5,182,370
5,824,238
6,929,517
4,552,380$
174,223
189,563
9,455,666
9,966,873
2008
Wright County Certificate of Taxes and Taxable Properties
2005
2004
2007
2006
2009
2012
2013
Tax exempt property values are not included in total net capacity value.
2011
2004
2010
2012
194,825
7,443,331
7,506,973
6,165,704
5,307,260
Levied
The fiscal year is for the values in the year levied for taxes collectible the following year.
235,633
2008
4,611,403 14,538,165 194,492
2007
2006
Miscellaneous
-84-
Total
Market Value
62.452 %812,855,300$ 1.4 %
58.760 882,038,300 1.4
51.040 993,647,300 1.4
42.601 1,243,461,100 1.3
46.942 1,282,400,700 1.3
46.191 1,245,407,600 1.4
45.822 1,188,222,100 1.5
46.729 1,106,541,400 1.5
49.773 1,219,719,700 1.6
42.262 1,189,043,200 1.6
100.0 %
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
19,021,771
Taxable Net
Total
17,312,075
17,947,260
17,400,280
11,714,671$
13,935,442
12,498,912
16,628,999
16,204,855
Capacity as a
Net Tax
Percentage of
Market Value
Total Direct
Tax RateValue *
Tax Capacity
19,579,693
-85-
(This page left blank intentionally)
City of Wright SpecialTotal Direct and
MonticelloCounty ISD No. 882DistrictsOverlapping
62.42 35.63 28.94 3.04 130.03
58.65 34.41 26.38 2.67 122.11
51.03 32.57 24.37 2.33 110.30
42.46 30.71 23.15 2.95 99.27
46.94 31.65 25.25 2.52 106.36
46.19 32.57 26.08 2.07 106.91
45.82 35.82 24.95 1.75 108.34
46.73 39.31 27.03 1.50 114.57
49.77 43.45 28.26 1.24 122.72
42.26 44.29 26.23 0.61 113.39
(1)
Source:
2013
Wright County
Year
Informationreflectstotaltaxratesleviedbyeachentity.Taxratesareexpressedintermsof“nettaxcapacity.”A
property’staxcapacityisdeterminedbymultiplyingitstaxablemarketvaluebyastatedeterminedclassrate.Class
ratesvarybypropertytypeandchangeperiodicallybasedonstatelegislation.Componentsofthedirectratearenot
readily available.
2007
2011
2006
2010
2009
2008
2012
CITY OF MONTICELLO
Property Tax Rates
Direct and Overlapping Governments (1)
Last Ten Fiscal Years
2005
2004
Overlapping Rates
-86-
Taxable Net Tax
Market ValueCapacity ValueRank
Xcel Energy (Northern States)495,349,400$ 9,901,516$ 1 52.05 %
Walmart Real Estate Bus Trust12,804,100 255,332 2 1.34
Target Corporation11,819,200 235,634 3 1.24
New River Medical Center 7,544,100 150,882 4 0.79
Home Depot USA, Inc.7,225,200 143,754 5 0.76
Muller Family Theatres5,536,400 109,597 6 0.58
AX TC Retail, LP5,156,900 101,638 7 0.53
RCE Property, LLC4,788,600 95,022 8 0.50
BBF Properties, Inc.3,977,400 79,798 9 0.42
Minnegasco, Inc.3,983,100 79,662 10 0.42
Peterson Holdings, LLC– – – –
Jacob Holdings of Monticello, LLC– – – –
Tapper’s Holdings, LLC– – – –
Gould Brothers Chev, LLP– – – –
Monticello Washington Assn – – – –
Tomann, Terrance & Mary Family LTD– – – –
Wright County Products– – – –
Total558,184,400$ 11,152,835$ 58.63 %
Source:
Taxpayer
Wright County Certificate of Taxes and Taxable Properties
Capacity Value
CITY OF MONTICELLO
Principal Property Taxpayers
Current Year and Nine Years Ago
2013
Total Net Tax
Percentage of
-87-
MarketTaxable Net Tax
ValueCapacity ValueRank
247,670,500$ 4,946,284$ 1 42.22 %
– – – –
– – – –
– – – –
– – – –
6,239,500 123,290 2 1.05
– – – –
– – – –
4,008,100 76,997 3 0.66
3,870,800 76,666 4 0.65
3,408,500 67,420 5 0.58
3,379,400 66,838 6 0.57
2,998,500 59,220 7 0.51
2,613,000 51,510 8 0.44
2,852,800 46,156 9 0.39
2,205,400 44,108 10 0.38
– – – –
279,246,500$ 5,558,489$ 47.45 %
2004
Capacity Value
Total Net Tax
Percentage of
-88-
Total TaxCollections in
Levy for Tax NetSubsequent
Fiscal YearCreditsLevy Amount Years
Property taxes
6,957,897$ –$ 6,957,897$ 6,877,210$ 98.84 %77,849$
6,957,776 293,845 6,663,931 6,577,121 98.70 87,039
6,750,132 283,978 6,466,154 6,349,118 98.19 107,001
6,499,914 261,362 6,238,552 6,044,463 96.89 170,027
7,600,189 267,056 7,333,133 7,118,136 97.07 171,883
7,750,119 263,587 7,486,532 7,237,730 96.68 208,613
7,648,269 278,930 7,369,339 7,155,141 97.09 176,922
7,677,351 293,075 7,384,276 7,178,807 97.22 167,561
7,850,042 – 7,850,042 7,759,174 98.84 34,023
7,900,724 – 7,900,724 7,827,356 99.07 –
Tax increments
656,639$ –$ 656,639$ 653,012$ 99.45 %3,511$
736,301 – 736,301 732,534 99.49 3,767
779,400 – 779,400 777,297 99.73 443
889,262 – 889,262 836,397 94.06 1,222
1,191,177 – 1,191,177 1,184,402 99.43 4,874
1,247,605 – 1,247,605 1,205,582 96.63 39,200
1,193,383 – 1,193,383 1,144,243 95.88 36,309
1,071,686 – 1,071,686 1,044,309 97.45 25,742
955,039 – 955,039 953,400 99.83 –
971,745 – 971,745 970,071 99.83 –
Source:
2009
2010
2013
Collected Within the
Fiscal Year of the Net Levy
of Net Levy
Percentage
2008
2009
2008
Wright County
December 31,
2005
2012
2011
2007
2007
2010
2006
2005
CITY OF MONTICELLO
2012
Fiscal Year
Property Tax Levies and Collections
Last Ten Fiscal Years
2004
2006
2004
2011
Ended
2013
-89-
Abatements
and
Amount AdjustmentsAmount
6,955,059$ 99.96 %(2,838)$ –$ – %
6,664,160 95.78 1,055 826 0.01
6,456,119 95.64 (8,603) 1,432 0.02
6,214,490 95.61 (22,051) 2,011 0.03
7,290,019 95.92 (39,224) 3,890 0.05
7,446,343 96.08 (32,099) 8,090 0.10
7,332,063 95.87 (25,704) 11,572 0.15
7,346,368 95.69 (19,074) 18,834 0.25
7,793,197 99.28 (33,327) 23,518 0.30
7,827,356 99.07 (17,639) 55,729 0.71
125,902$
656,523$ 99.98 %(116)$ –$ – %
736,301 100.00 – – –
777,740 99.79 (1,660) – –
837,619 94.19 (51,643) – –
1,189,276 99.84 (1,901) – –
1,244,782 99.77 (887) 1,936 0.16
1,180,552 98.92 (11,059) 1,772 0.15
1,070,051 99.85 – 1,635 0.15
953,400 99.83 – 1,639 0.17
970,071 99.83 (470) 1,204 0.12
8,186$
Total Collections
to Date
of Levy
Percentage
Total Uncollected
of Levy
Percentage
-90-
(This page left blank intentionally)
67.6 %13.0 %12.3 %7.1 %100.0 %
64.7 14.1 10.9 10.3 100.0
69.5 13.7 8.7 8.1 100.0
71.3 14.0 7.5 7.3 100.0
69.0 14.2 8.0 8.8 100.0
75.0 12.2 6.8 6.0 100.0
67.1 16.0 8.4 8.4 100.0
66.0 15.9 9.7 8.4 100.0
69.0 15.7 7.5 7.7 100.0
68.8 15.4 8.2 7.6 100.0
Source: City of Monticello utility billing department
557,059,66742,206,803
480,916,628
531,690,121
603,808,861
655,929,291
594,058,809
573,404,397
561,141,629
527,965,050
618,160,952
45,954,136
34,346,550
54,964,838
48,622,223
47,703,225
52,154,498
34,601,796
47,227,405
44,219,755
47,866,428
85,819,687
59,011,500
57,739,095
52,305,000
49,035,750
47,790,000
38,713,057
47,225,176
50,971,196
46,654,712
383,079,041
62,690,535
74,789,130
82,989,503
91,517,828
84,234,653
69,825,753
90,001,208
84,194,027
97,281,410
467,672,488
409,879,658
430,263,791
376,687,840
348,580,072
426,358,402
(in millions of gallons)
Last Ten Fiscal Years
Water Sold by Type of Customer
CITY OF MONTICELLO
Residential
Total
CommercialIndustrialGovernmentWater Sold
Total
Fiscal Year
2004
2005
2006
324,868,043
344,197,058
419,892,135
2007
2008
2009
2010
2011
2012
2013
2004
2005
2006
2007
2008
2009
2010
2011
2012
2013
Percentage of Total Water Sold
-91-
Base RateRate 501–4,000Rate 4,001–13,369Rate Over 13,369Base Rate
First 500 per 100 per 100 per 100First 500
Cubic Feet Cubic Feet Cubic Feet Cubic Feet Cubic Feet
8.25$ 0.50$ 0.50$ N/A 8.25$
8.58 0.52 0.52 N/A 8.58
8.92 0.54 0.54 N/A 8.92
10.26 0.62 0.71 N/A 10.26
11.91 0.74 0.84 N/A 11.91
12.40 0.78 0.88 N/A 12.40
13.00 0.85 0.95 N/A 14.75
14.30 0.95 1.10 1.20 14.30
15.44 1.03 1.19 1.30 15.44
15.44 1.03 1.19 1.30 15.44
N/A – Not Available
Source:City of Monticello utility billing department
2010
Fiscal Year
2004
2012
2007
2006
2005
2013
Water
Residential
CITY OF MONTICELLO
2011
2009
2008
Utility Rates per Year
Last Ten Fiscal Years
-92-
Rate 501–4,000Rate 4,001–13,369Rate Over 13,369Base RateRate Over 500
per 100 per 100 per 100First 500 per 100
Cubic Feet Cubic Feet Cubic Feet Cubic Feet Cubic Feet
0.50$ N/A N/A 10.00$ 1.73
0.52 N/A N/A 10.00 1.80
0.54 N/A N/A 10.40 1.87
0.62 N/A N/A 11.96 2.15
0.74 N/A N/A 13.75 2.47
0.78 N/A N/A 14.45 2.60
0.95 N/A N/A 15.15 2.75
0.95 1.10 1.20 16.75 3.00
1.03 1.19 1.30 18.76 3.36
1.03 1.19 1.30 18.76 3.36
Sewage
Commercial
-93-
General
SpecialNet General Obligation
Assessment Other Tax Increment Premiums Obligation Certificate of
BondsBondsBonds(Discounts)TotalNotesIndebtedness
6,715,000$ 2,420,000$ 1,100,000$ –$ 10,235,000$11,456,825$ –$
31,065,000 2,420,000 970,000 668,448 35,123,448 10,835,699 –
30,255,000 2,210,000 810,000 639,119 33,914,119 10,188,973 –
28,415,000 7,132,903 680,000 691,438 36,919,341 9,515,592 –
24,075,000 15,737,903 575,000 651,542 41,039,445 – –
21,535,000 12,822,903 470,000 631,516 35,459,419 – –
21,320,000 11,531,903 – 572,079 33,423,982 – –
29,490,000 10,196,903 – 818,803 40,505,706 – –
26,625,000 8,877,403 – 744,748 36,247,151 – –
13,010,000 7,506,653 – 265,320 20,781,973 – 445,000
(1)See the Schedule of Demographic and Economic Statistics.
Note:Details regarding the City’s outstanding debt can be found in the notes to basic financial statements
General Obligation Bonds
2008
2007
2010
2009
Governmental Activities
2004
2013
Fiscal Year
2012
2011
CITY OF MONTICELLO
Ratios of Outstanding Debt by Type
Last Ten Fiscal Years
2005
2006
-94-
General
Obligation
Revenue Contract Improvement Revenue Net Premiums Total Primary
Bondsfor Deed BondsBonds(Discounts)Government Per Capita (1)
7,170,000$ 2,185,222$ –$ –$ –$ 31,047,047$9.96 %3,041$
6,830,864 2,085,222 – – – 54,875,233 16.51 5,147
6,579,419 764,293 – – – 51,446,804 14.35 4,620
6,157,974 664,293 907,097 – 14,364 54,178,661 14.29 4,815
5,742,098 564,293 907,097 26,445,000 (502,517) 74,195,416 18.94 6,528
5,209,011 – 837,097 26,445,000 (479,980) 67,470,547 17.55 5,879
4,612,454 – 747,097 26,445,000 (457,441) 64,771,092 15.79 5,632
3,690,898 – 654,097 26,445,000 (434,904) 70,860,797 16.76 5,554
2,739,341 – 568,597 26,445,000 (412,366) 65,587,723 13.73 5,071
1,782,784 – 3,479,347 26,445,000 (360,211) 52,573,893 10.45 4,055
Income (1)
of Personal
Percentage
Business-Type Activities
-95-
Less Amounts
GeneralAvailable
Obligationin Debt
Bonds (1)Service Fund TotalPer Capita (3)
10,235,000$ 8,355,235$ 1,879,765$ 0.23 %184
35,123,448 9,162,548 25,960,900 2.94 2,435
33,914,119 9,170,798 24,743,321 2.49 2,222
36,919,341 18,520,552 18,398,789 1.48 1,635
41,039,445 9,936,332 31,103,113 2.43 2,737
35,459,419 2,346,286 33,113,133 2.66 2,885
33,423,982 2,363,382 31,060,600 2.61 2,701
40,505,706 12,727,140 27,778,566 2.51 2,177
36,247,151 12,952,896 23,294,255 1.91 1,801
23,996,000 2,750,079 21,245,921 1.79 1,639
(1)
(2)
(3)See the Schedule of Demographic and Economic Statistics.
Note:Details regarding the City’s outstanding debt can be found in the notes to basic financial statements.
Property (2)Fiscal Year
2004
2005
Estimated
Actual Market
Doesnotincluderevenuebonds.Taxincrementandtaxabatementbondsareincludedbecausepropertytaxeswill
be levied to pay the debt service on these issues should the primary sources fail to provide adequate revenue.
Value of
2010
2009
SeetheScheduleofTaxableNetTaxCapacityValueandEstimatedMarketValueofTaxablePropertyforthe
estimated actual market value.
2008
2011
2012
2013
CITY OF MONTICELLO
Ratios of Net General Bonded Debt Outstanding
Last Ten Fiscal Years
Percentage of
2006
2007
-96-
Estimated
Net DebtShare of
Outstanding (1)Overlapping Debt
51,040,000$ 15.68 %8,003,072$
11,455,000 71.62 8,204,071
62,495,000 16,207,143
20,961,653 100.00 20,961,653
83,456,653$ 37,168,796$
(1)
(2)
Note:
Sources:
ISD No. 882 (Monticello)
Thepercentageofoverlappingdebtapplicableisestimatedusingtaxableassessedpropertyvalues.Applicable
percentageswereestimatedbydeterminingtheportionofthecounty’staxableassessedvaluethatiswithinthe
government’s boundaries and dividing it by the county’s total taxable assessed value.
Overlappinggovernmentsarethosethatcoincide,atleastinpart,withthegeographicboundariesoftheCity.This
scheduleestimatestheportionoftheoutstandingdebtofthoseoverlappinggovernmentsthatisbornebythe
residentsandbusinessesoftheCity.Thisprocessrecognizesthat,whenconsideringthegovernment’sabilityto
issueandrepaylong-termdebt,theentiredebtburdenbornebytheresidentsandbusinessesshouldbetakeninto
account.However,thisdoesnotimplythateverytaxpayerisaresidentand,therefore,responsibleforrepayingthe
debt of each overlapping government.
AssessedvaluedatausedtoestimateapplicablepercentagesprovidedbytheCountyBoardofEqualizationand
Assessment. Debt outstanding data provided by the county.
Governmental Unit
Total direct and overlapping debt
as of December 31, 2013
Overlapping debt
Total overlapping debt
City of Monticello direct debt
Direct and Overlapping Governmental Activities Debt
CITY OF MONTICELLO
Applicable (2)
Estimated
Percentage
Wright County
Gross bonded debt outstanding (excluding business-type activity debt).
-97-
2004200520062007
16,257,106$ 17,640,766$ 19,872,946$ 23,203,682$
7,170,000 6,910,000 6,650,000 6,100,000
9,087,106$ 10,730,766$ 13,222,946$ 17,103,682$
Total net debt applicable to the limit
44.10%39.17%33.46%26.29%
Note:
Fiscal Year
CITY OF MONTICELLO
Legal Debt Margin Information
Last Ten Fiscal Years
AllMinnesotamunicipalities(counties,cities,towns,andschooldistricts)aresubjecttostatutory“netdebt”
limitationsundertheprovisionsofMinnesotaStatutes,§475.53.Underthisprovision,beginningwithissueshaving
asettlementdateafterJune30,2008,thestateofMinnesotaincreasedthelegaldebtlimitfrom2percentto3
percent of the City’s taxable market value.
Debt limit
as a percentage of debt limit
Total net debt applicable to limit
Legal debt margin
-98-
200820092010201120122013
37,303,833$ 38,074,842$ 35,646,663$ 33,196,242$ 36,591,591$ 35,671,296$
6,180,000 5,585,000 4,985,000 4,365,000 3,795,000 6,200,000
31,123,833$ 32,489,842$ 30,661,663$ 28,831,242$ 32,796,591$ 29,471,296$
16.57%14.67%13.98%13.15%10.37%17.38%
Market value1,189,043,200$
Debt limit (3% of market value)35,671,296
Debt applicable to limit
Other general obligation bonds10,986,000
Less amounts for general obligation bonds
not subject to limit(4,786,000)
Total net debt applicable to limit6,200,000
Legal debt margin 29,471,296$
Legal Debt Margin Calculation for Fiscal Year 2013
-99-
Less Net
OperatingOperatingAvailableTimes
RevenueExpensesRevenuePrincipalInterestCoverage
Telecommunication Revenue Bonds and Wastewater Treatment Bonds
N/A N/A N/A N/A N/A N/A
N/A N/A N/A N/A N/A N/A
N/A N/A N/A N/A N/A N/A
N/A N/A N/A N/A N/A N/A
81,258$ 783,848$ (702,590)$ –$ –$ –
5,178 877,421 (872,243) – 1,714,896 (0.51)
532,619 1,975,399 (1,442,780) – 1,814,707 (0.80)
3,128,730 3,792,801 (664,071) – 1,818,869 (0.37)
1,794,144 2,964,200 (1,170,056) – 1,848,137 (0.63)
3,628,380 4,170,028 (541,648) – 2,019,857 (0.27)
N/A – Not Available
Note:DetailsregardingtheCity’soutstandingdebtcanbefoundinthenotestobasicfinancialstatements.Grossrevenue
does not include investment earnings. Operating expenses do not include depreciation or interest.
2013
Debt Service
CITY OF MONTICELLO
Pledged Revenue Coverage
Last Ten Fiscal Years
Fiscal
Year
2011
2005
2012
2010
2004
2009
2008
2007
2006
-100-
Estimated
Personal Income
(Amounts Per CapitaSchool
Expressed in PersonalEnrollment
Population (1)Whole Dollars) (2)Income (3)ISD No. 882 (4)
10,211 311,762,252$ 30,532$ 4,010 4.9 %
10,662 332,313,216 31,168 4,076 4.4
11,136 358,590,336 32,201 3,962 4.4
11,253 379,102,317 33,689 3,910 5.1
11,366 391,740,556 34,466 3,921 6.2
11,476 384,446,000 33,500 3,928 9.2
11,501 410,252,171 35,671 3,932 7.8
12,759 422,820,501 33,139 4,011 6.9
12,935 477,596,640 37,196 4,044 6.2
12,964 502,964,308 38,797 4,016 5.2
Notes/sources:
(1)
(2)
(3)
(4)
(5)
PercapitapersonalincomedataisprovidedbytheBureauofEconomicAnalysis.InformationforWrightCounty,in
whichtheCityresides,thesmallestregionapplicabletotheCitythatthisinformationisavailablefor2009data,is
an estimate based on Wright County information and prior years.
2008
2009
2006
2012
2013
Thisestimatedpersonalincomenumberiscalculatedbytakingthepercapitapersonalincomeandmultiplyingitby
the City’s population. Also see note (3) regarding the per capita personal income figures.
CITY OF MONTICELLO
Demographic and Economic Statistics
Last Ten Fiscal Years
2004
Rate (5)
Unemployment
Year
2007
2010U.S.BureauofCensus;2004–2009and2011–2013MinnesotaStateDemographicCenterpopulation
estimates.
Annual average unemployment provided by the Minnesota Department of Employment & Economic Development.
Fiscal
2005
2010
2011
ISDNo.882enrollmentinformationwasobtainedfromthedistrictauditreport.Theenrollmentinformationisbased
on the resident ADMs (average daily membership) served.
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EmployeesRankEmployeesRank
2,000 1 20.25 %411 2 6.78 %
544 2 5.51 438 1 7.22
500 3 5.06 410 3 6.76
350 4 3.54 346 4 5.71
325 5 3.29 – – –
Cub Foods180 6 1.82 123 5 2.03
173 7 1.75 – – –
Home Depot160 8 1.62 – – –
127 9 1.29 122 6 2.01
Hoglund Bus/Hoglund Truck88 10 0.89 – – –
– – – 122 7 2.01
Monticello Ford Mercury, Inc.– – – – – –
Maus Foods– – – 116 8 1.91
K-Mart– – – 100 9 1.65
Monticello Ford Mercury, Inc.– – – 95 10 1.57
Total4,447 45.02 %2,283 37.65 %
(1)Temporary increase is due to uprate. Typical employment is approximately 420 employees.
Source:
CITY OF MONTICELLO
of Total City
Principal Employers
Percentage
Employment
Current Year and Nine Years Ago
City of Monticello 2013 Budget and the City of Monticello 2013 Bond Statement
Xcel Energy (Northern States) (1)
EmployerEmployment
Perkins Family Restaurant
City of Monticello
Ultra Machine Corporation
Cargill Kitchen Sol. (Sunny Fresh)
2004
Percentage
Centracare Medical Center (New River)
Wal-Mart Supercenter
of Total City
2013
ISD No. 882 (Monticello)
-102-
2004200520062007
Function
N/A 16.60 16.60 16.60
N/A 3.00 3.00 3.00
N/A 21.50 21.50 21.50
Culture and recreation
N/A5.00 5.00 5.00
N/A 8.00 8.00 8.00
Community development N/A 2.00 2.00 2.00
N/A 4.00 4.00 4.00
N/A 10.00 10.00 10.00
FiberNet N/A – – –
Total N/A 70.10 70.10 70.10
N/A – Not Available
Source:City Finance Department
Public works
Engineering
Sewer/water
Parks
Maintenance
Liquor store
Community center
General government
CITY OF MONTICELLO
Full-Time Equivalent City Government Employees by Function
Last Ten Fiscal Years
Fiscal Year
-103-
200820092010201120122013
17.60 17.60 19.00 19.00 19.00 19.00
3.00 3.00 3.00 3.00 3.00 1.00
21.50 19.50 19.50 19.00 19.00 19.00
5.00 5.00 5.00 5.00 5.00 5.00
8.00 8.00 8.00 8.00 8.00 8.00
2.00 2.00 2.00 2.00 2.00 2.00
4.00 4.00 4.00 4.00 4.00 4.00
10.00 10.00 10.00 10.00 10.00 10.00
– 6.00 11.00 11.50 11.50 8.50
71.10 75.10 81.50 81.50 81.50 76.50
-104-
2004200520062007
Function
Fire
278 325 266 317
Salt (tons)N/A114 164 274
Sand (tons)N/A320 319 347
Crack sealant (pounds)N/A N/A11,115 14,200
Asphalt repairs (tons of asphalt)N/A N/A300 330
Culture and recreation
Shade trees planted– – – 384
Diseased trees removed N/A N/A N/A N/A
Trails maintained (miles)N/A N/A N/A N/A
Community center users N/A N/A145,700 168,923
Program sales N/A N/A67,021 88,412
Rental revenue N/A N/A148,533 139,096
Economic development
Permits issued 1,199 1,412 1,323 962
Permit valuation 62,300,360$ 68,069,444$ 45,572,690$ 45,917,000$
Water
Meters replaced 64 81 109 94
Curb box repairs (water valves)50 50 50 50
Hydrant repair 175 175 175 175
Annual residential water use324,868,043 344,197,058 419,892,135 467,673,488
Average daily consumption (MG)1.497 1.569 1.817 1.921
Maximum daily gallons pumped (MG)4.209 4.889 5.271 5.150
Sewer
Sewage flow (MG)404 434 414 423
Miles jetted 20 20 20 20
Blocks rodded3 3 3 3
Miles inspected 20 20 20 20
Library
Items checked out N/A N/A188,704 209,174
Programs offeredN/AN/A232 145
Program participants N/A N/A4,196 3,537
Deputy registrar (DMV)
Motor vehicle transactions44,684 46,492 45,225 40,950
DNR transactions N/A N/A5,307 5,580
Game/fish transactions N/A N/A N/A167
Dealerships serviced N/A N/A18 14
Drivers licenses transactions N/A N/A N/A N/A
N/A – Not Available
MG – Millions of Gallons
Note:Indicators are not available for the general government city functions.
Sources:Various city departments
CITY OF MONTICELLO
Operating Indicators by Function
Last Ten Fiscal Years
Public works
Calls for service
Fiscal Year
-105-
`
200820092010201120122013
395 375 282 284 203 235
474 475 521 445 300 475
611 615 710 547 335 325
18,150 15,000 23,580 11,384 1,492 25,739
200 200 200 253 220 225
410 425 150 140 220 275
868 200 180 113 205 71
17 17 17 17 17 18
186,429 186,279 183,527 190,014 175,272 211,234
129,339 149,829 167,723 168,159 162,227 192,708
136,547 127,612 184,913 154,962 149,733 163,329
3,681 879 495 372 632 659
45,950,000$ 11,630,000$ 9,033,078$ 5,333,124$ 12,285,873$ 15,821,223$
111 280 145 215 418 235
75 200 200 200 100 100
175 175 175 430 300 300
409,879,658 430,263,791 376,687,840 348,580,072 426,358,402 383,079,041
1.749 1.806 1.625 1.557 1.798 1.621
4.728 4.496 3.565 4.116 4.590 4.269
408 390 398 431 408 392
20 20 25 27 12 20
3 3 25 10 20 10
20 20 30 30 12 20
216,599 219,694 248,327 228,886 237,938 263,220
155 170 164 153 149 173
3,869 4,100 3,604 3,807 3,761 3,773
45,595 48,000 51,250 54,814 56,211 55,261
5,913 5,646 5,982 5,616 5,465 5,727
235 250 156 325 509 445
21 25 30 34 38 21
N/A450 605 579 814 951
-106-
2004200520062007
Function
Public safety
Fire
Fire stations in service1 1 1 1
Number of volunteers– 30 30 30
Public works
Streets (miles)– 52.4 65.7 67.6
Culture and recreation
Parks acreage– – – –
Parks18 18 19 19
Park buildings9 9 9 9
Community center (square footage)81,000 81,000 81,000 81,000
Water
Fire hydrants700 700 700 700
Note:
Sources:Various city departments
No capital asset indicators are available for the general government and economic development functions.
Fiscal Year
CITY OF MONTICELLO
Capital Asset Statistics by Function
Last Ten Fiscal Years
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200820092010201120122013
1 1 1 1 1 1
30 30 30 30 30 30
67.6 68.0 68.0 68.0 68.0 68.0
120 180 509 635 635 696
20 20 28 28 28 28
10 11 15 15 15 15
81,000 81,000 81,000 81,000 81,000 81,000
700 700 700 700 700 700
-108-
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Management Report
for
City of Monticello, Minnesota
December 31, 2013
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To the City Council and Management
City of Monticello, Minnesota
We have prepared this management report in conjunction with our audit of the City of Monticello,
Minnesota’s (the City) financial statements for the year ended December 31, 2013. The purpose of this
report is to provide comments resulting from our audit process and to communicate information relevant
to city finances in Minnesota. We have organized this report into the following sections:
Audit Summary
Governmental Funds Overview
Enterprise Funds Overview
Government-Wide Financial Statements
Legislative Updates
Accounting and Auditing Updates
We would be pleased to further discuss any of the information contained in this report or any other
concerns that you would like us to address. We would also like to express our thanks for the courtesy and
assistance extended to us during the course of our audit.
The purpose of this report is solely to provide those charged with governance of the City, management,
and those who have responsibility for oversight of the financial reporting process comments resulting
from our audit process and information relevant to city finances in Minnesota. Accordingly, this report is
not suitable for any other purpose.
Minneapolis, Minnesota
June 27, 2014
THIS PAGE INTENTIONALLY LEFT BLANK
-1-
AUDIT SUMMARY
The following is a summary of our audit work, key conclusions, and other information that we consider
important or that is required to be communicated to the City Council, administration, or those charged
with governance of the City.
OUR RESPONSIBILITY UNDER AUDITING STANDARDS GENERALLY ACCEPTED IN THE UNITED
STATES OF AMERICA AND GOVERNMENT AUDITING STANDARDS
We have audited the financial statements of the governmental activities, the business-type activities, each
major fund, and the aggregate remaining fund information of the City as of and for the year ended
December 31, 2013, and the related notes to the financial statements. Professional standards require that
we provide you with information about our responsibilities under auditing standards generally accepted in
the United States of America and Government Auditing Standards, as well as certain information related
to the planned scope and timing of our audit. We have communicated such information to you verbally
and in our audit engagement letter. Professional standards also require that we communicate the following
information related to our audit.
PLANNED SCOPE AND TIMING OF THE AUDIT
We performed the audit according to the planned scope and timing previously discussed and coordinated
in order to obtain sufficient audit evidence and complete an effective audit.
AUDIT OPINION AND FINDINGS
Based on our audit of the City’s financial statements for the year ended December 31, 2013:
We have issued an unmodified opinion on the City’s financial statements. Our audit opinion
included an emphasis of a matter paragraph to direct the financial statement readers’ attention to
the discussion of the City’s default on the telecommunication bonds.
We noted one matter involving the City’s internal control over financial reporting that we
considered to be material weaknesses:
o During our audit, we noted a material prior period adjustment, as detailed in the notes to
basic financial statements, that was necessary to adjust for special assessments to the
proper balance as of December 31, 2012. Auditing standards consider the necessity of
recording a material prior period adjustment to be indicative of a material weakness in the
related internal controls.
The results of our testing disclosed no instances of noncompliance required to be reported under
Government Auditing Standards.
We reported two findings based on our testing of the City’s compliance with Minnesota laws and
regulations:
o The City is required by Minnesota Statute § 412.271 to receive signed declarations for
payments to employees. We noted that for several claims for payroll, mainly community
center employees, the City did not receive the required signed declaration.
o We noted that 1 out of 25 disbursements tested was not paid within the 35-day period as
required by Minnesota Statute § 471.425.
-2-
FOLLOW-UP ON PRIOR YEAR FINDINGS AND RECOMMENDATIONS
As a part of our audit of the City’s financial statements for the year ended December 31, 2013, we
performed procedures to follow-up on the findings and recommendations that resulted from our prior year
audit. We reported the following findings that were corrected by the City in the current year:
In the prior year, the City held two time deposits that exceeded the Federal Depository Insurance
Coverage (FDIC) coverage limit, deeming them improper under Minnesota Statute § 118A.05.
During this year’s audit testing, all deposits were properly insured.
In the prior year, the City entered into contracts that did not follow state statute § 471.425, which
states each contract of a municipality must require the prime contractor to pay any subcontractor
within 10 days of the prime contractor’s receipt of payment from the municipality for undisputed
services provided by the subcontractor. The contract must require the prime contractor to pay
interest of 1 1/2 percent per month to the subcontractor on any unpaid balance. During this year’s
audit testing, all contracts tested complied with the state statute.
OTHER RECOMMENDATIONS
We offer the following observations and recommendations for the continued improvement of the City’s
internal controls over financial reporting:
Information Technology (IT) Contingency Planning – Management is responsible for
establishing and maintaining effective internal controls, including entity-level controls (control
environment, risk assessment, information and communication, and monitoring) and for the fair
presentation of the financial statements in accordance with accounting principles generally
accepted in the United States of America.
Auditing and reporting standards specify that we report deficiencies in the design of the
entity-level controls of the City’s internal controls. As part of our audit, we noted the City has
designed the general controls over the IT system in the City, including having a contingency plan
developed for alternative processing in the event of loss or interruption of IT functions.
These controls are intended to prevent the possibility of the IT system of the City from not being
able to provide complete and accurate information consistent with the financial reporting
objectives and current needs of the City.
We recommend, however, that the City improve these internal controls over the IT functions of the City
by having these contingency plans formally documented and written to be included in the design of the
general controls over the IT system in the City. This formal documentation would include distribution of
the contingency plan developed for alternative processing in the event of loss or interruption of IT
functions to all city employees.
SEGREGATION OF DUTIES
One important element of internal accounting controls is an adequate segregation of duties such that no
one individual has responsibility to execute a transaction, have physical access to the related assets, and
have responsibility or authority to record the transaction. A lack of segregation of duties subjects the City
to a higher risk that errors or fraud could occur and not be detected in a timely manner in the normal
course of business.
A part of having adequate segregation of duties and proper internal controls is the proper cross-training of
employees. This would include having secondary employees available to back up the processing of
transactions in case of absence or vacation of a fellow employee. An example of where this is needed
within the City is at the community center. Currently, the community center has only one employee who
understands and completes the daily closeout procedure process.
-3-
We recommend that the City review the staffing within the community center in an effort to create
adequate internal controls and proper backup employee support in all accounting and reporting functions
in cases of employee absence and/or vacation.
SIGNIFICANT ACCOUNTING POLICIES
Management is responsible for the selection and use of appropriate accounting policies. The significant
accounting policies used by the City are described in Note 1 of the notes to basic financial statements. For
the fiscal year ended December 31, 2013, the City implemented Governmental Accounting Standards
Board (GASB) Statement No. 65, Items Previously Reported as Assets and Liabilities. GASB Statement
No. 65 identified specific items previously reported as assets that will now be classified as either deferred
outflows of resources or outflows (expenditures/expenses), and items previously reported as liabilities
that will now be reported as either deferred inflows of resources or inflows (revenues).
We noted no transactions entered into by the City during the year for which there is a lack of authoritative
guidance or consensus. All significant transactions have been recognized in the financial statements in the
proper period.
ACCOUNTING ESTIMATES AND MANAGEMENT JUDGMENTS
Accounting estimates are an integral part of the financial statements prepared by management and are
based on management’s knowledge and experience about past and current events and assumptions about
future events. Certain accounting estimates are particularly sensitive because of their significance to the
financial statements and because of the possibility that future events affecting them may differ
significantly from those expected. The most sensitive estimates affecting the financial statements were:
Depreciation – Management’s estimates of depreciation expense are based on the estimated
useful lives of the assets.
Net Other Post-Employment Benefit (OPEB) Liabilities – Actuarial estimates of the net OPEB
obligation is based on eligible participants, estimated future health insurance premiums, and
estimated retirement dates.
Land Held for Resale – These assets are stated at the lower of cost or net realizable value based
on management’s estimates.
Compensated Absences – Management’s estimate is based on current rates of pay and sick leave
balances.
Allowance for Doubtful Accounts – Management’s estimate of the allowance for doubtful
accounts is based on historical revenues, historical loss levels, and an analysis of the collectability
of individual accounts.
We evaluated the key factors and assumptions used to develop these accounting estimates in determining
that they are reasonable in relation to the basic financial statements taken as a whole. The financial
statement disclosures are neutral, consistent, and clear.
CORRECTED AND UNCORRECTED MISSTATEMENTS
Professional standards require us to accumulate all known and likely misstatements identified during the
audit, other than those that are trivial, and communicate them to the appropriate level of management.
Where applicable, management has corrected all such misstatements. In addition, none of the
misstatements detected as a result of audit procedures and corrected by management, when applicable,
were material, either individually or in the aggregate, to each opinion unit’s financial statements taken as
a whole.
-4-
DIFFICULTIES ENCOUNTERED IN PERFORMING THE AUDIT
We encountered no significant difficulties in dealing with management in performing and completing our
audit.
DISAGREEMENTS WITH MANAGEMENT
For purposes of this report, professional standards define a disagreement with management as a financial
accounting, reporting, or auditing matter, whether or not resolved to our satisfaction, that could be
significant to the financial statements or the auditor’s report. We are pleased to report that no such
disagreements arose during the course of our audit.
MANAGEMENT REPRESENTATIONS
We have requested certain representations from management that are included in the management
representation letter dated June 27, 2014.
MANAGEMENT CONSULTATIONS WITH OTHER INDEPENDENT ACCOUNTANTS
In some cases, management may decide to consult with other accountants about auditing and accounting
matters, similar to obtaining a “second opinion” on certain situations. If a consultation involves
application of an accounting principle to the City’s financial statements or a determination of the type of
auditor’s opinion that may be expressed on those statements, our professional standards require the
consulting accountant to check with us to determine that the consultant has all the relevant facts. To our
knowledge, there were no such consultations with other accountants.
OTHER AUDIT FINDINGS OR ISSUES
We generally discuss a variety of matters, including the application of accounting principles and auditing
standards, with management each year prior to retention as the City’s auditors. However, these
discussions occurred in the normal course of our professional relationship and our responses were not a
condition to our retention.
OTHER MATTERS
Our audit was conducted for the purpose of forming opinions on the financial statements that collectively
comprise the City’s basic financial statements. Other information, including the introductory section,
supplemental information, and statistical section, as listed in the table of contents, are presented for
purposes of additional analysis and are not required parts of the basic financial statements.
With respect to the supplemental information accompanying the financial statements, we made certain
inquiries of management and evaluated the form, content, and methods of preparing the information to
determine that the information complies with accounting principles generally accepted in the United
States of America, the method of preparing it has not changed from the prior period, and the information
is appropriate and complete in relation to our audit of the financial statements. We compared and
reconciled the supplemental information to the underlying accounting records used to prepare the basic
financial statements or to the basic financial statements themselves.
With respect to the introductory section and the statistical section accompanying the basic financial
statements, our procedures were limited to reading this other information and, in doing so, we did not
identify any material inconsistencies with the audited financial statements.
-5-
GOVERNMENTAL FUNDS OVERVIEW
This section of the report provides you with an overview of the financial trends and activities of the City’s
governmental funds, which includes the General Fund, special revenue, debt service, and capital project
funds. These funds are used to account for the basic services the City provides to all of its citizens, which
are financed primarily with property taxes. The governmental fund information in the City’s financial
statements focuses on budgetary compliance, and the sufficiency of each governmental fund’s current
assets to finance its current liabilities.
PROPERTY TAXES
Minnesota cities rely heavily on local property tax levies to support their governmental fund activities. In
recent years this dependence has been heightened, as economic conditions have resulted in reductions to
other revenue sources such as state aids and fees generated from property development or redevelopment.
Despite these conditions, property taxes levied by Minnesota cities increased a record low 0.9 percent
state-wide for 2012, and 2.27 percent for 2013. Almost one-third of Minnesota cities kept their 2013 levy
at the same level as the previous year, while another 13 percent reduced their levies for 2013.
Economic conditions have also had a profound effect on the tax base of Minnesota cities with state-wide
taxable market values declining each of the last four levy years, including average decreases of
8.8 percent and 4.5 percent for taxes payable in 2012 and 2013, respectively. There is optimism that this
trend is reversing, as the market value decline for the 2013 levy year was the smallest of the past four
years. However, since the assessed valuation used for levying property taxes is based on values from the
previous fiscal year (e.g. the market value for taxes payable in 2013 is based on estimated values as of
January 1, 2012), taxable market value improvement has lagged behind recent upturns in the housing
market and the economy in general.
The City’s taxable market value decreased 6.9 percent for taxes payable in 2012, but increased
10.2 percent for taxes payable in 2013. The following graph shows the City’s changes in taxable market
value over the past 10 years:
$–
$200,000,000
$400,000,000
$600,000,000
$800,000,000
$1,000,000,000
$1,200,000,000
$1,400,000,000
2004200520062007200820092010201120122013
Taxable Market Value
-6-
Tax capacity is considered the actual base available for taxation. It is calculated by applying the state’s
property classification system to each property’s market value. Each property classification, such as
commercial or residential, has a different calculation and uses different rates. Consequently, a city’s total
tax capacity will change at a different rate than its total market value, as tax capacity is affected by the
proportion of the City’s tax base that is in each property classification from year-to-year, as well as
legislative changes to tax rates. The City’s tax capacity for taxes payable in 2012 decreased 4.4 percent
and increased 17.7 percent in 2013. The following graph shows the City’s change in tax capacities over
the past 10 years:
$–
$2,000,000
$4,000,000
$6,000,000
$8,000,000
$10,000,000
$12,000,000
$14,000,000
$16,000,000
$18,000,000
$20,000,000
2004200520062007200820092010201120122013
Local Tax Capacity
The following table presents the average tax rates applied to city residents for each of the last two levy
years, along with comparative state-wide and metro-area rates. The general increase in rates reflects both
the increased reliance of local governments on property taxes and the recent decline in tax capacities.
Rates expressed as a percentage of net tax capacity
20122013 20122013
Average tax rate
City 46.3 48.8 49.8 42.3
County 46.8 48.5 43.5 44.3
School27.3 28.5 28.3 26.2
Special taxing6.8 7.2 1.2 0.6
Total127.2133.0 122.8113.4
City of Monticello
All Cities
State-Wide
The City’s portion of the tax rate has been higher than average in recent years. Fiscal 2013 is below
state-wide averages as a result of improved market values and tax capacities in the current year. The
increase in market values and local tax capacity in 2013 is related to significant increases to market values
at the Xcel power plant.
-7-
GOVERNMENTAL FUND BALANCES
The following table summarizes the changes in the fund balances of the City’s governmental funds during
the year ended December 31, 2013, presented both by fund balance classification and by fund. The data
for fiscal 2012 in this document has been restated as a result of a change in fund structure, change in
accounting principle, and prior period adjustment all reported in fiscal 2013.
Increase
20132012, as Restated (Decrease)
Fund balances of governmental funds
Total by classification
Nonspendable2,081,026$ 2,259,503$ (178,477)$
Restricted10,928,985 21,480,938 (10,551,953)
Assigned6,485,727 8,655,488 (2,169,761)
Unassigned3,656,463 3,044,716 611,747
Total governmental funds 23,152,201$ 35,440,645$ (12,288,444)$
Total by fund
Major funds
General3,914,563$ 3,478,507$ 436,056$
Special revenue funds
Community Center271,204 179,500 91,704
Economic Development Authority7,115,305 7,461,554 (346,249)
Debt Service Fund2,750,079 12,952,896 (10,202,817)
Capital projects funds
Capital Outlay Revolving– 1,945,695 (1,945,695)
Sanitary Sewer Access– 1,866,876 (1,866,876)
Capital Projects3,479,694 1,911,603 1,568,091
Nonmajor funds5,621,356 5,644,014 (22,658)
Total governmental funds 23,152,201$ 35,440,645$ (12,288,444)$
Governmental Fund Changes in Fund Balance
Fund Balance
as of December 31,
As reflected in the table above, total governmental fund balance decreased by $12,288,444. The decrease
was due to bond refunding payments of $10,690,000 in fiscal 2013. The decline in the Capital Outlay
Revolving and Sanitary Sewer Access Funds’ balances relates to closing these funds in the current year
and transferring the fund balances to other funds.
-8-
GOVERNMENTAL FUNDS REVENUE AND EXPENDITURES
The following table presents the per capita revenue of the City’s governmental funds for the past three
years, along with state-wide averages.
We have included the most recent comparative state-wide averages available from the Office of the State
Auditor to provide a benchmark for interpreting the City’s data. The amounts received from the typical
major sources of governmental fund revenue will naturally vary between cities based on factors such as
the City’s stage of development, location, size and density of its population, property values, services it
provides, and other attributes. It will also differ from year-to-year due to the effect of inflation and
changes in the City’s operation. Also, certain data on these tables may be classified differently than how it
appears on the City’s financial statements in order to be more comparable to the state-wide information,
particularly in separating capital expenditures from current expenditures.
We have designed this section of our management report using per capita data in order to better identify
unique or unusual trends and activities of your city. We intend for this type of comparative and trend
information to complement, rather than duplicate, information in the Management’s Discussion and
Analysis. An inherent difficulty in presenting per capita information is the accuracy of the population
count, which for most years is based on estimates.
Year 201120122013
Population2,500–10,000 10,000–20,000 20,000–100,000 12,75912,93512,964
Property taxes414$ 382$ 416$ 572$ 637$ 616$
Tax increments32 44 46 82 79 75
Franchise fees and other taxes29 36 30 27 26 25
Special assessments60 54 62 145 147 159
Licenses and permits24 24 35 20 21 26
Intergovernmental revenues278 279 138 112 42 98
Charges for services104 81 83 176 161 142
Other66 58 50 162 119 40
Total revenue1,007$ 958$ 860$ 1,296$ 1,232$ 1,181$
December 31, 2012
City of Monticello
Governmental Funds Revenue per Capita
With State-Wide Averages by Population Class
State-Wide
The City has generated more property tax revenue for its governmental funds revenue compared to the
average Minnesota city. The City continues to generate more tax increment revenue per capita than
average, as it has made use of this tool to finance commercial development. The City generates more
special assessment revenue (typically used for new development) as the City continues to be in a growth
phase.
The City’s per capita governmental funds revenue for 2013 was $1,181, a decrease of about 4.1 percent
from the prior year. Property taxes decreased $21 per capita as the City had significant delinquent tax
collections in fiscal 2012. This decrease is offset by an increase in intergovernmental revenues of $56 per
capita due to a significant portion of revenues received for specific projects. Other revenue also decreased
$79 per capita, mainly as a result of a negative market value adjustment on the City’s investment portfolio
in 2013.
-9-
The expenditures of governmental funds will also vary from state-wide averages and from year-to-year
based on the City’s circumstances. Expenditures are classified into three types as follows:
Current – These are typically the general operating-type expenditures occurring on an annual
basis, and are primarily funded by general sources such as taxes and intergovernmental revenues.
Capital Outlay and Construction – These expenditures do not occur on a consistent basis, more
typically fluctuating significantly from year-to-year. Many of these expenditures are
project-oriented, which are often funded by specific sources that have benefited from the
expenditure, such as special assessment improvement projects.
Debt Service – Although the expenditures for debt service may be relatively consistent over the
term of the respective debt, the funding source is the important factor. Some debt may be repaid
through specific sources such as special assessments or redevelopment funding, while other debt
may be repaid with general property taxes.
The City’s expenditures per capita of its governmental funds for the past three years, together with
state-wide averages, are presented in the following table:
Year 201120122013
Population2,500–10,000 10,000–20,000 20,000–100,000 12,75912,93512,964
Current
127$ 101$ 84$ 160$ 156$ 122$
234 229 241 135 134 139
114 105 92 131 132 132
82 95 86 190 176 191
73 75 92 133 101 117
630$ 605$ 596$ 749$ 699$ 701$
Capital outlay
and construction315$ 312$ 221$ 319$ 219$ 105$
Debt service
187$ 135$ 103$ 381$ 400$ 408$
58 46 39 108 100 72
245$ 181$ 142$ 489$ 500$ 480$
Governmental Funds Expenditures per Capita
With State-Wide Averages by Population Class
City of Monticello
Principal
December 31, 2010
State-Wide
Interest and fiscal
General government
Public safety
Street maintenance and
lighting
Culture and recreation
All other
The City’s governmental funds current per capita expenditures are higher than state-wide averages for
cities in the same population class.
The City’s per capita expenditures for capital outlay and construction will vary on a yearly basis
depending on current, ongoing capital projects. Debt service costs are significantly higher than other cities
state-wide due to the stage of development of the City.
-10-
GENERAL FUND
The City’s General Fund accounts for the financial activity of the basic services provided to the
community. The primary services included within this fund are the administration of the municipal
operations, police and fire protection, building inspection, streets and highway maintenance, and culture
and recreation.
The following graph displays the City’s General Fund trends of financial position and changes in the
volume of financial activity. Fund balance and cash balance are typically used as indicators of financial
health or equity, while annual expenditures are often used to measure the size of the operation.
$–
$500,000
$1,000,000
$1,500,000
$2,000,000
$2,500,000
$3,000,000
$3,500,000
$4,000,000
$4,500,000
$5,000,000
$5,500,000
$6,000,000
$6,500,000
$7,000,000
$7,500,000
$8,000,000
$8,500,000
20062007200820092010201120122013
General Fund Financial Position
Year Ended December 31,
Fund Balance Cash Balance (Including Interfund Borrowing)Expenditures
The City’s General Fund cash and investments balance (including interfund borrowing) at December 31,
2013 was $4,020,940, which increased $438,353 from 2012. Total fund balance at December 31, 2013
was $3,914,563, up $436,056.
This fund balance level represents approximately 61.0 percent of the City’s annual General Fund
expenditures, based on 2013 expenditure levels. The City’s adopted fund balance policy requires that the
City set aside fund balance to represent 45 percent of expenditures for working capital and contingencies.
Having an appropriate fund balance is an important factor because a government, like any organization,
requires a certain amount of equity to operate. Generally, the amount of equity required typically
increases as the size of the operation increases. A healthy financial position also allows the City to avoid
volatility in tax rates; helps minimize the impact of state funding changes; allows for the adequate and
consistent funding of services, repairs, and unexpected costs; and can be a factor in determining the City’s
bond rating and resulting interest costs.
-11-
The following illustrations provide you with the components of the City’s General Fund revenue
compared to budget for 2013:
Other
Charges for Services
Intergovernmental
Licenses and Permits
Property Taxes
General Fund Revenue
Budget to Actual
Budget Actual
Total General Fund revenues for 2013 were $6,948,946, which was $161,977 (2.4 percent) over the final
budget. Property taxes were over budget by $45,602, mostly due to collections of prior year delinquencies
and lower abatements than allowed for in the budget. Other revenues also exceeded budgeted amounts by
$125,474 as a result of receiving a higher than budgeted insurance dividend.
The following graph presents the City’s General Fund revenue sources for the last five years. The graph
reflects the City’s increasing reliance on taxes and user fees to finance its General Fund operations.
$–
$400,000
$800,000
$1,200,000
$1,600,000
$2,000,000
$2,400,000
$2,800,000
$3,200,000
$3,600,000
$4,000,000
$4,400,000
$4,800,000
$5,200,000
$5,600,000
$6,000,000
TaxesIntergovernmentalOther
General Fund Revenue by Source
Year Ended December 31,
2009 2010 2011 2012 2013
Overall, General Fund revenues decreased $364,402 (5.0 percent) from the previous year. Property taxes
decreased $131,557 due to a decrease in the amount of delinquent tax collections. Other revenues
declined $303,581 due to a significant insurance claim received in 2012 and the market value decline on
investments reported in the current year.
-12-
The following graphs illustrate the components of General Fund spending for 2013 compared to budget:
General Governmental
Public Safety
Public Works
Culture and Recreation
Other
General Fund Expenditures
Budget to Actual
Budget Actual
Total General Fund expenditures for 2013 were $6,420,890, which was $286,079 (4.3 percent) under
budget. The public works area was under budget by $249,444 due to decreased personnel services from
department turnover.
The following illustrations provide you with the components of the City’s General Fund spending
compared to budget for 2013 and by function for the past four years:
$–
$250,000
$500,000
$750,000
$1,000,000
$1,250,000
$1,500,000
$1,750,000
$2,000,000
General
Governmental
Public SafetyPublic WorksCulture and
Recreation
Other
General Fund Expenditures by Function
Year Ended December 31,
2010 2011 2012 2013
Overall, General Fund expenditures decreased $89,778 (1.4 percent) from the prior year. General
government expenditures decreased $157,279, which was mainly due to the reallocation of IT and central
equipment charges to newly created internal service funds.
-13-
ENTERPRISE FUNDS OVERVIEW
The City maintains a number of enterprise funds to account for services the City provides that are
financed primarily through fees charged to those utilizing the service. This section of the report provides
you with an overview of the financial trends and activities of the City’s enterprise funds, which includes
the Water Utility, Sewage Utility, Liquor Operations, Deputy Registrar, and Fiber Optics Funds.
ENTERPRISE FUNDS FINANCIAL POSITION
The following table summarizes the changes in the financial position of the City’s enterprise funds during
the year ended December 31, 2013, presented both by classification and by fund. The data for fiscal 2012
in this document has been restated as a result of a change in fund structure, change in accounting
principle, and prior period adjustment all reported in fiscal 2013.
Increase
20132012, as Restated (Decrease)
Net position of enterprise funds
Total by classification
Net investment in capital assets20,496,832$ 22,687,306$ (2,190,474)$
Unrestricted6,461,685 7,726,250 (1,264,565)
Total enterprise funds 26,958,517$ 30,413,556$ (3,455,039)$
Total by fund
Water15,220,444$ 15,462,946$ (242,502)$
Sewage22,564,278 23,072,290 (508,012)
Liquor979,250 1,008,519 (29,269)
Fiber Optics(12,030,506) (9,270,192) (2,760,314)
Deputy Registrar225,051 139,993 85,058
Total enterprise funds 26,958,517$ 30,413,556$ (3,455,039)$
Enterprise Funds Change in Financial Position
Net Position
as of December 31,
In total, the net position of the City’s enterprise funds decreased by $3,455,039 (excluding change in
accounting principle) during the year ended December 31, 2013. The significant loss of about
$3.6 million in the Fiber Optics Fund contributed to the overall decrease. Depreciation expense on capital
assets in excess of current year payments on outstanding debt reduced the overall net investment in capital
assets in enterprise fund operations. The Sewage Fund operating decline relates to depreciation on capital
assets of over $1,100,000, which is only partially funded by sewage fees.
-14-
WATER ENTERPRISE FUND
The following graph presents 10 years of comparative operating results for the City’s Water Enterprise
Fund:
$–
$100,000
$200,000
$300,000
$400,000
$500,000
$600,000
$700,000
$800,000
$900,000
$1,000,000
$1,100,000
$1,200,000
$1,300,000
$1,400,000
2004200520062007200820092010201120122013
Water Enterprise Fund
Year Ended December 31,
Operating Revenue
Operating Expense
Operating Income Before Depreciation
At December 31, 2013, the Water Enterprise Fund had a cash balance of $4,267,193 and net position of
$15,220,444. Net position consisted of $10,652,946 in net investment in capital assets and $4,567,498 in
unrestricted net position.
Operating revenue in the Water Enterprise Fund is $1,239,083, a decrease of $95,362 from the prior year.
This decrease is related to the City implementing a rate increase in its billing structure, which is offset by
a significant decrease in consumption.
Water Enterprise Fund operating expenses for 2013 were $1,009,876, a decrease of $108,913, which is
spread across all expenditure categories in this fund.
As shown in the above graph, operating income before depreciation has been steadily increasing over the
past few years.
It is important that this fund continue to have positive operating results so as not to place an additional
burden on other city funds. It is also important that the City continue to monitor water rates so that they
are designed to also provide for future repairs and replacement of the infrastructure assets.
-15-
SEWAGE ENTERPRISE FUND
The following graph presents 10 years of comparative operating results for the City’s Sewage Enterprise
Fund:
$(200,000)
$–
$200,000
$400,000
$600,000
$800,000
$1,000,000
$1,200,000
$1,400,000
$1,600,000
$1,800,000
$2,000,000
$2,200,000
$2,400,000
$2,600,000
2004200520062007200820092010201120122013
Sewage Enterprise Fund
Year Ended December 31,
Operating Revenue
Operating Expense
Operating Income (Loss) Before Depreciation
At December 31, 2013, the Sewage Enterprise Fund had a cash balance of $4,328,991 and net position
balance of $22,564,278. Net position consisted of $18,796,893 in net investment in capital assets and
$3,767,385 of unrestricted net position.
Sewage Enterprise Fund operating revenues for 2013 were $2,006,718, which is $131,367 more than the
previous year. Most of this increase relates to an increase in sewage rates, which is offset by a significant
decrease in consumption. Operating expenses for 2013 were $2,383,924, which is $75,008 lower than
2012. This decrease is due to the decrease in uncollectable accounts for sewage services.
As shown in the above graph, operating income before depreciation has been steadily increasing over the
past several years.
It is important that this fund have positive operating results so as not to place an additional burden on
other city funds. It is also important that the City continue to monitor sewage rates so they are designed to
also provide for future repairs and replacement of infrastructure assets.
-16-
LIQUOR ENTERPRISE FUND
The following graph presents 10 years of operating results for the Liquor Enterprise Fund:
$–
$400,000
$800,000
$1,200,000
$1,600,000
$2,000,000
$2,400,000
$2,800,000
$3,200,000
$3,600,000
$4,000,000
$4,400,000
$4,800,000
$5,200,000
2004200520062007200820092010201120122013
Liquor Enterprise Fund
Year Ended December 31,
Sales Cost of Sales
Operating Expenses Operating Income (Loss)
The Liquor Enterprise Fund ended 2013 with net position of $979,250, a decrease of $29,269 from the
prior year. Of the net position balance, $311,712 represents the investment in liquor capital assets, leaving
$667,538 of unrestricted net position.
Liquor sales for 2013 were $5,085,924, an increase of $231,126 (4.8 percent) from last year. Sales have
steadily increased over the last several years, increasing by about 49.0 percent since 2004. The Liquor
Enterprise Fund generated a gross profit of $1,318,276 in 2013, or about 25.9 percent, of gross sales. The
Liquor Enterprise Fund’s gross profit margin has been improving over the last two years after a profit
margin of 24.7 in fiscal 2011. Operating expenses for 2013 were $689,949, an increase of $27,947 from
last year.
-17-
FIBER OPTICS ENTERPRISE FUND
In 2007, the City started its Fiber Optics Project, which will run a fiber optics system to every premise in
the City to provide customers with phone, high-speed Internet, and cable television services as a
self-supporting system with competitive pricing, which will act as an economic development tool for the
City. The project was completed as of the year ended December 31, 2010 and became fully operational.
The following graph presents four years of operating results for the Fiber Optics Enterprise Fund:
$(1,500,000)
$(1,000,000)
$(500,000)
$–
$500,000
$1,000,000
$1,500,000
$2,000,000
$2,500,000
$3,000,000
$3,500,000
$4,000,000
2010201120122013
Fiber Optics Enterprise Fund
Year Ended December 31,
Operating Revenue
Operating Expense
Operating Income (Loss) Before Depreciation
At December 31, 2013, the Fiber Optics Enterprise Fund had a cash balance of $202,976 and a deficit net
position balance of ($12,030,506). Net position consisted of a deficit of ($9,315,668) in net investment in
capital assets and a deficit of ($2,714,838) of unrestricted net position.
Operating revenue in this fund declined $172,482, or 9.6 percent, in fiscal 2013. This is the result of a
combination of having less customers and the City changing billing practices to match industry standards.
The operating loss in this fund during this year was $1,682,768. After you add in $1,936,848 in interest
on borrowing from other funds and bonds outstanding, the total overall loss in the fund was almost
$3.6 million. This is a staggering figure considering the total overall annual expenses of the City are
around $23.0 million. At December 31, 2013, this fund had $26.4 million outstanding in bonds. As a
result of the continued operating loss, the City went into default on these bonds by not making the
scheduled principal and interest payments on the bonds.
As a result of poor operating results, we highly recommend the City continue to take action toward
revising its strategic plan for the future of this fund. The continued development of this plan would
include a discussion on how the current financial results compare to the original strategic plan for this
fund. The continued development of this plan should consider all options available to the City as it relates
to this enterprise fund. Most importantly, this plan should continue to include a discussion on the impact
this fund is having on the overall financial health of the City, including what impact the changes made to
the plan are expected to have on the City as a whole in the short-term but also over the long-term.
-18-
GOVERNMENT-WIDE FINANCIAL STATEMENTS
In addition to fund-based information, the current reporting model for governmental entities also requires
the inclusion of two government-wide financial statements designed to present a clear picture of the City
as a single, unified entity. These government-wide financial statements provide information on the total
cost of delivering services, including capital assets and long-term liabilities.
STATEMENT OF NET POSITION
The Statement of Net Position essentially tells you what your city owns and owes at a given point in time,
the last day of the fiscal year. Theoretically, net position represents the resources the City has leftover to
use for providing services after its debts are settled. However, those resources are not always in spendable
form, or there may be restrictions on how some of those resources can be used. Therefore, net position is
divided into three components: net investment capital assets, restricted, and unrestricted.
The following table presents the components of City’s net position as of December 31, 2013 and 2012,
for governmental activities and business-type activities. The data for fiscal 2012 in this document has
been restated as a result of a change in fund structure, change in accounting principle, and prior period
adjustment all reported in fiscal 2013.
Increase
20132012, as Restated (Decrease)
Net position
Governmental activities
Net investment in capital assets44,268,757$ 40,868,506$ 3,400,251$
Restricted18,118,070 18,231,653 (113,583)
Unrestricted13,487,299 16,601,407 (3,114,108)
Total governmental activities75,874,126 75,701,566 172,560
Business-type activities
Net investment in capital assets20,496,832 22,687,306 (2,190,474)
Unrestricted6,463,638 7,726,250 (1,262,612)
Total business-type activities26,960,470 30,413,556 (3,453,086)
Total net position 102,834,596$ 106,115,122$ (3,280,526)$
December 31,
The City’s total net position at December 31, 2013 was $3,280,526 lower, excluding the change in
accounting principle and the prior period adjustment, than at the beginning of the year. The overall
financial results are reflective of the significant decline in net position in the Fiber Optics Project, which
totaled $3.3 million before transfers.
The increase in net investment in capital assets is reflective of the City’s continued investment in land and
capital improvements in the City. It also reflects continued payments on outstanding bonds which are
exceeding depreciation on related assets.
-19-
STATEMENT OF ACTIVITIES
The Statement of Activities tracks the City’s yearly revenues and expenses, as well as any other
transactions that increase or reduce total net position. These amounts represent the full cost of providing
services. The Statement of Activities provides a more comprehensive measure than just the amount of
cash that changed hands, as reflected in the fund-based financial statements. This statement includes the
cost of supplies used, depreciation of long-lived capital assets, and other accrual-based expenses.
The following table presents the change in net position of the City for the years ended December 31, 2013
and 2012. The data for fiscal 2012 in this document has been restated as a result of a change in fund
structure, change in accounting principle, and prior period adjustment all reported in fiscal 2013.
2012, as Restated
Program
ExpensesRevenuesNet ChangeNet Change
Net (expense) revenue
Governmental activities
General government 1,623,727$ 147,244$ (1,476,483)$ (1,483,745)$
Public safety 1,884,981 349,903 (1,535,078) (1,496,433)
Public works 5,163,461 1,731,315 (3,432,146) (2,711,369)
Sanitation 487,268 16,653 (470,615) (446,960)
Culture and recreation 2,875,260 1,307,149 (1,568,111) (1,563,135)
Economic development 1,005,813 – (1,005,813) (803,594)
Interest on long-term debt 235,265 – (235,265) (1,242,712)
Business-typ e activities
Water 1,009,600 1,214,570 204,970 186,134
Sewer 2,466,660 1,981,491 (485,169) (629,738)
Liquor 689,559 1,318,276 628,717 552,743
Deputy registrar 293,531 456,285 162,754 (6,322)
Fiber optic 5,240,871 1,606,720 (3,634,151) (3,480,841)
22,975,996$ 10,129,606$ (12,846,390) (13,125,972)
General revenues
Taxes 8,927,164 8,746,348
Franchise taxes 320,640 339,518
General aids and grants 65,228 38,618
Investment earnings (306,303) 1,032,311
Other general revenues 555,250 640,959
Gain on sale of assets 3,885 11,575
9,565,864 10,809,329
(3,280,526)$ (2,316,643)$
2013
Total net (expense) revenue
Total general revenues
Change in net position
One of the goals of this statement is to provide a side-by-side comparison to illustrate the difference in the
way the City’s governmental and business-type operations are financed. The table clearly illustrates the
dependence of the City’s governmental operations on general revenues, such as property taxes and
unrestricted grants. It also shows if the City’s business-type activities are generating sufficient program
revenues (service charges and program-specific grants) to cover expenses. This is critical given the
current downward pressures on the general revenue sources.
-20-
LEGISLATIVE UPDATES
Despite an improving economy, the 2013 Legislature faced the familiar prospect of having to address a
significant projected deficit in order to adopt a balanced budget for the next biennium. The November
2012 financial forecast projected a deficit of $1.1 billion in the state General Fund for the 2014–2015
biennium, which was revised down to a $627 million deficit in the February 2013 forecast. Even with this
challenge, there was an expectation that with one political party holding the Governor’s office and
majorities in both the House and Senate, this biennial budget agreement would be reached more quickly
and easily than the previous one, which featured numerous vetoes, a special session, and the longest
shutdown of non-essential state government services in Minnesota history. While in the end there was no
special session or government shutdown, the 2013 session still stretched until the final day allowable
under the state constitution, with the last bill passed at midnight.
The following is a summary of recent legislative activity affecting the finances of Minnesota cities in
2013 and into the future:
Local Government Aid (LGA) – The state-wide LGA appropriation for fiscal 2013 was set to
increase about 2.8 percent to $426.4 million. However, the 2012 Legislature froze 2013 LGA
payments at 2012 levels for cities with a population of 5,000 or more. For cities with populations
below 5,000, 2013 LGA was the greater of their 2012 aid or the amount they would have received for
2013 under existing law.
The 2013 Legislature completely overhauled the LGA formula for fiscal year 2014 and thereafter,
creating a three-tiered formula that includes separate “need factor” calculations for cities with
populations under 2,500, between 2,500 and 10,000, or over 10,000. The new formula simplifies the
LGA calculation, and is designed to reduce the volatility of the LGA distribution by limiting the
amount it may decline in a given year. Under the new formula, each city’s LGA distribution for 2014
will be no less than their 2013 LGA. Beginning in 2015, any reduction to a city’s LGA distribution
will be limited to the lesser of $10 per capita, or 5 percent of their previous year net tax levy. For
cities that gain under the new formula, the increases will be distributed proportionate to their unmet
need, as determined by the new “need factor” calculations. The state-wide LGA appropriation is
$507.6 million for fiscal 2014, $509.1 million for 2015, and $511.6 million for fiscal 2016 and
thereafter.
Levy Limits – A levy limit for city property tax levies payable in 2014 was established for all cities
with populations exceeding 2,500. The levy limit base is the certified levy (excluding special levies)
plus the certified LGA for taxes payable in fiscal 2012 or 2013, whichever is greater, increased by 3
percent. The levy limit is equal to the base, less the city’s certified LGA for fiscal 2014. Levies for
special purposes such as debt service, abatements, or voter-approved purposes, are not subject to this
limitation.
Market Value Definitions – A number of levy, tax, spending, debt, and similar limits that had
previously been computed based on “market value” or “taxable market value” must now be computed
based on “estimated market value.” This change was enacted to eliminate the effects of the homestead
market value exclusion established in 2011.
Levy Authority for Watershed Management Plan – Cities are granted the authority to levy taxes to
provide funding for the implementation of a comprehensive watershed management plan.
Tax Status of Leased Tax-Exempt Property – Tax-exempt property owned by a political
subdivision and held under a lease for a term of at least one year, or under a contract for the purchase
thereof, is considered to be the property of the person holding it for all purposes of taxation. This
change makes the tax treatment of leased property owned by local governments consistent with leased
property owned by the federal government.
-21-
Tax Increment Financing (TIF) – A number of changes and clarifications were made to rules
governing the use of TIF, including:
The prohibition on using tax increments for improvements or equipment primarily of a
decorative or aesthetic nature, or with costs twice as high due to the selection of materials or
designs compared to more commonly used improvements or equipment, is eliminated.
The four-year rule originally applying to TIF Districts certified between January 1, 2005 and
April 20, 2009 is extended through December 31, 2016.
Development authorities may elect to reduce the original net tax capacity of qualifying TIF
districts for the effects of the homestead market value exclusion that replaced the homestead
tax credit program.
Taxes paid by captured tax capacity of TIF districts that are attributable to the new general
education levy authorized by the 2013 Legislature, will be paid to the school district that
imposes the levy.
Park Dedication Fees – A clarification was made to define the basis on which a city calculates a
park dedication fee charged to a developer in lieu of dedicating land for park usage. The fee must be
calculated on the fair market value of the land as annually determined by the city based on tax
valuation or other relevant data. The new law also provides a method for resolving valuation disputes
through negotiation or the use of independent appraisals of land in the same land use category.
Host Community Economic Development Grants – A new program was created that will provide
grants for the acquisition and improvement of publicly owned capital assets for metro-area cities that
host waste disposal facilities. No local matching funds are required.
Change to Small Cities Development Block Grants – The Minnesota Department of Employment
and Economic Development is now allowed to provide a forgivable loan through the Small Cities
Development Block Grant Program directly to a private enterprise. The city in which the private
enterprise is located is no longer required to submit an application, only a resolution of support.
Wastewater and Stormwater Funding – Several changes were made to wastewater and stormwater
grant and loan programs administered by the Public Facilities Authority. The changes include
expanded eligibility for some programs, and increased grant or loan ceilings for others.
Sales Tax Exemption – Cities are exempted from paying sales tax on qualifying purchases, effective
for purchases made on or after January 1, 2014. This exemption does not include purchases of goods
or services to be used as inputs to goods or services cities provide to the public that are generally
provided by a private business, such as liquor stores, golf courses, marinas, or fitness centers.
Cities with a population over 500 will be required to include a property tax savings report along with
its proposed 2013 payable 2014 property tax levy certification, with the amount of sales or use taxes
paid or estimated to have been paid in fiscal 2012. Cities must also discuss the savings resulting from
the sales tax exemption at their fall truth-in-taxation public hearings.
Organized Solid Waste Collection – The process for imposing the city-organized collection of solid
waste was streamlined and better defined. The previous 180-day process for cities to adopt organized
collection of solid waste was eliminated. The process now begins with a 60-day period in which cities
may negotiate with collectors currently operating in the city, thereby giving them the first opportunity
to develop a proposal for organized collection. If the 60-day negotiation period ends without an
agreement, a city may continue the process by passing a resolution to form a committee to study the
methods of organizing collection and make recommendations. A city must provide public notice and
hold at least one public hearing before deciding to implement organized collection.
-22-
Pensions – An omnibus pension bill was passed that made a number of changes to both state-wide
pension plans and single employer relief associations, including:
Changes to the Public Employees Retirement Association (PERA) General Plan:
o The “average salary” for determining surviving spouse and dependent benefits was
redefined.
o A number of clarifications were made to what constitutes “salary” for plan purposes.
o Changes were made to the level of annual post-retirement adjustments, which will
vary based on the funding level of the plan.
Changes to the PERA Police and Fire Plan:
o Increases employee contribution rate from 9.6 percent of salary to 10.2 percent for
fiscal 2014, and 10.8 percent for fiscal 2015 and thereafter.
o Increases employer contribution rate from 14.4 percent of salary to 15.3 percent for
fiscal 2014, and 16.2 percent for fiscal 2015 and thereafter.
o A 20-year proportional vesting period was established for new hires beginning in
2014, under which the member becomes 50 percent vested after 10 years, and vests
an additional 5 percent annually until fully vested at 20 years.
o The retirement annuity formula calculation was changed to incorporate the effect of
the new 20-year vesting period, and a new cap of 33 years on allowable service time
included in the annuity calculation.
o The early retirement reduction factor was increased from the current 2.4 percent per
year to 5 percent, phased in over a 5-year period beginning July 1, 2014.
o Changes were made to the level of annual post-retirement adjustments, which will
vary based on the funding level of the plan.
Changes to single employer relief associations:
o The threshold of assets at which police relief associations and salaried or volunteer
fire relief associations must prepare financial statements and have them audited by an
independent auditor was raised from $200,000 to $500,000.
o Volunteer firefighter relief associations are now required to pay a supplemental
survivor benefit whenever it pays a survivor benefit, regardless of whether it is
authorized in the association bylaws.
o Any change to the interest rate paid during the deferral period of lump-sum service
pensions must be approved by the governing body of the city or independent
firefighting corporation to which the association is related.
In addition, a new supplemental state aid was created to provide funding for pension plans. An annual
allotment of $15.5 million will be distributed among the PERA Police and Fire Plan ($9 million),
municipal volunteer firefighter associations ($5.5 million allocated based on proportionate share of
fire state aid), and the Minnesota State Retirement System State Patrol Plan ($1 million).
Expansion of Debt Authority – Several changes were made to expand the allowable uses of certain
types of debt, including:
Home rule charter city or statutory city capital notes are allowed to be used for the purchase
of application development services and training related to the use of computer hardware and
software.
Capital improvement program (CIP) bonds are allowed to be used for expenditures incurred
before the adoption of the CIP, if the expenditures are included in the plan.
Street reconstruction bonds are allowed to be used for bituminous overlay projects, which
previously had not been included in the definition of reconstruction.
-23-
Authorized Investments – The list of authorized investments for cities was expanded to include:
revenue obligations issued by local governments without levy authority that are rated AA or better;
short-term (13 month maturity or less) obligation issued by a school district that is either rated in the
highest credit rating category or covered by the State of Minnesota Credit Enhancement Program; and
short-term (18 month maturity or less) guaranteed investment contracts when the issuer’s or
guarantor’s short-term debt is rated in the highest rating category, even if their long-term debt is rated
below the top two rating categories.
Elections – The Legislature passed an omnibus elections policy bill that made a number of changes
and clarifications to election requirements, including:
Establishing “no excuse” absentee balloting;
Increasing the time for counting absentee ballots from 4 days prior to the election to 7;
Reducing the number of people a voter may vouch for in a polling place from 15 to 8;
Eliminating the requirement to have at least one telecommunications device for deaf voter
registration in every city of the first, second, or third class;
Requiring that the municipal clerk designated to administer absentee ballots also be
responsible for the administration of a “ballot board”;
Reducing the number of election judges required in a precinct for elections other than a
general election from 4 to 3, for precincts with more than 500 voters; and allowing the
minimum number of three election judges for all elections including general elections for
precincts with less than 500 registered voters;
Modifying the vote differentials requiring publically funded recounts to 0.25 percent in
elections where more than 50,000 votes are cast, and 0.5 percent for elections in which
between 400 and 50,000 votes are cast;
Amending the time period in which cities are prohibited from holding a special election from
the first 40 days following a general election to the first 56 days;
Increasing the number of days’ notice a city clerk must provide to a county auditor before
holding a municipal election from 67 to 74 days; and
Establishing a pilot program and task force for the use of electronic rosters of voters.
Alternative Bid Publication for Projects Funded by Special Assessments – A technical change
was made to eliminate duplicative publication requirements for projects funded with special
assessments. The definition of “recognized industry trade journal” was broadened to include websites
or electronic publications, thereby eliminating circumstances that were forcing cities utilizing an
alternative electronic publication method to also publish written notice for certain projects.
Met Council Allocated Costs – A change was made to allow cities that are allocated costs by the
Met Council to request the cost be deferred, or to be paid over time on a payment schedule with
interest as agreed to by the Met Council.
Liquor Licensing – An omnibus liquor bill was passed that made several changes to liquor licensing
and distribution. Among the changes are: authorizing cities with municipal liquor operations to issue
brewer taproom licenses that allow consumption on the premises or adjacent to malt liquor breweries;
authorizing cities to issue brewers a license for off-sale of malt liquor packaged by the brewer;
providing for the sale of malt-liquor educator licenses that will allow malt liquor tastings and
education to be conducted similar to wine tastings; and allowing micro-distilleries to provide product
samples on site.
Tax-Exempt Holding Period for Development Property – The tax exempt holding period for
city-owned land held for development is increased from 9 to 15 years for property acquired between
January 1, 2000 and December 31, 2010, or for property located in a city outside of the metro area
with a population under 20,000.
-24-
Citizen Contact Information Classified as Private Data – Citizen contact information submitted to
cities in order to receive certain notifications or to subscribe to the city’s electronic publications, such
as phone numbers or email addresses, is now classified as private data. The names of people on such
lists remain public information.
Criminal History and Background Checks – Cities are authorized to perform criminal history
checks on applicants for: city employment, volunteer positions, or a license that does not otherwise
subject the applicant to a criminal history check. Such criminal history checks may not be substituted
for statutorily mandated background checks.
Background checks are now required for all fire department applicants, and are allowed for current
fire department employees. The fire chief is also required to perform criminal history record checks
of applicants.
-25-
ACCOUNTING AND AUDITING UPDATES
GASB STATEMENT NO. 67 – FINANCIAL REPORTING FOR PENSION PLANS – AN AMENDMENT OF
GASB STATEMENT NOS. 25 AND 50
The primary objective of this statement is to improve financial reporting by state and local government
pension plans. GASB Statement No. 67 replaces the requirements of GASB Statement Nos. 25 and 50 for
pension plans that are administered through trusts or equivalent arrangements that meet the following
criteria: contributions from employers and nonemployer contributing entities to the pension plan and
earnings on those contributions are irrevocable; pension plan assets are dedicated to providing pensions to
plan members in accordance with the benefit terms; and pension plan assets are legally protected from the
creditors of employers, nonemployer contributing entities, and the pension plan administrator. If the plan
is a defined benefit pension plan, plan assets also are legally protected from creditors of the plan
members. The requirements of GASB Statement Nos. 25 and 50 remain applicable to pension plans that
are not administered through trusts covered by the scope of this statement and to defined contribution
plans that provide post-employment benefits other than pensions. The statement makes a number of
changes in the financial statement presentation, measurement, and required disclosures relating to the
reporting of these types of pension plans. This statement is effective for financial statements for fiscal
years beginning after June 15, 2013. Earlier application is encouraged.
GASB STATEMENT NO. 68 – ACCOUNTING AND FINANCIAL REPORTING FOR PENSIONS – AN
AMENDMENT OF GASB STATEMENT NOS. 27 AND 50
The primary objective of this statement is to improve accounting and financial reporting by state and local
governments for pensions. This statement replaces the requirements of GASB Statement Nos. 27 and 50,
as they relate to pensions that are provided through pension plans administered as trusts or equivalent
arrangements that meet certain criteria (as described earlier for GASB Statement No. 67). The
requirements of GASB Statement Nos. 27 and 50 remain applicable for pensions that are not covered by
the scope of this statement.
This statement establishes standards for measuring and recognizing liabilities, deferred outflows of
resources, deferred inflows of resources, and expense/expenditures. In addition, this statement details the
recognition and disclosure requirements for employers with liabilities (payables) to a defined benefit
pension plan and for employers whose employees are provided with defined contribution pensions. This
statement also addresses circumstances in which a nonemployer entity has a legal requirement to make
contributions directly to a pension plan. This statement is effective for financial statements for fiscal years
beginning after June 15, 2014. Earlier application is encouraged.
Included in this statement are major changes in how employers that participate in cost-sharing pension
plans, such as the Teachers’ Retirement Association (TRA) and PERA, account for pension benefit
expenses and liabilities. In financial statements prepared using the economic resources measurement
focus and accrual basis of accounting (government-wide and proprietary funds), a cost-sharing employer
that does not have a special funding situation is required to recognize a liability for its proportionate share
of the net pension liability of all employers with benefits provided through the pension plan. A
cost-sharing employer is required to recognize pension expense and report deferred outflows of resources
and deferred inflows of resources related to pensions for its proportionate share of collective pension
expense and collective deferred outflows of resources and deferred inflows of resources related to
pensions. In addition, the effects of (1) a change in the employer’s proportion of the collective net pension
liability and (2) differences during the measurement period between the employer’s contributions and its
proportionate share of the total of contributions from employers included in the collective net pension
liability are required to be determined. These effects are required to be recognized in the employer’s
pension expense in a systematic and rational manner over a closed period equal to the average of the
expected remaining service lives of all active and inactive employees that are provided with pensions
through the pension plan.
-26-
GASB STATEMENT NO. 69 – GOVERNMENT COMBINATIONS AND DISPOSALS OF GOVERNMENT
OPERATIONS
This statement provides accounting and financial reporting guidance, including disclosure requirements,
for government combinations and disposals of government operations. Government combinations include
mergers, acquisitions, and transfers of operations. Included within the scope of this statement are
combinations of governmental entities, or combinations of governmental entities with nongovernmental
entities (such as a nonprofit entity), as long as the new or continuing organization is a government. This
statement does not apply to combinations in which a government acquires an organization that continues
to exist as a separate entity, or acquires an equity interest in an organization that remains legally separate
from the acquiring government. A disposal of operations occurs when a government either transfers or
sells specific operations. The provisions of this statement are effective for financial statements for periods
beginning after December 15, 2013. Earlier application is encouraged.
CHANGES TO REQUIREMENTS FOR FEDERAL GRANTS
In December 2013, the U.S. Office of Management and Budget (OMB) issued “Uniform Administrative
Requirements, Cost Principles, and Audit Requirements for Federal Audits,” which supersedes all or parts
of eight OMB circulars; consolidating federal cost principles, administrative principles, and audit
requirements in one document. The “Super Circular” includes a number of significant changes to the
federal Single Audit process, including an increase in dollar threshold for requiring a Single Audit,
changes to the thresholds and process used for determining major programs, a reduction in the percentage
of expenditures required to be covered by a Single Audit, revised criteria for determining low-risk
auditees, and an increase in the threshold for reporting questioned costs. The draft version of this
guidance also included proposed reductions in the number of compliance requirements to be tested in a
Single Audit, but final guidance on those changes will not be available until an updated compliance
supplement is issued in 2014.
CITY OF MONTICELLO
WRIGHT COUNTY, MINNESOTA
Special Purpose Audit Reports on
Internal Controls and
Compliance With Laws and Regulations
Year Ended
December 31, 2013
THIS PAGE INTENTIONALLY LEFT BLANK
Page
Independent Auditor’s Report on Internal Control Over Financial Reporting and on
Compliance and Other Matters Based on an Audit of Financial Statements Performed
in Accordance With Government Auditing Standards 1–2
Independent Auditor’s Report on Minnesota Legal Compliance3
Schedule of Findings and Responses4–5
CITY OF MONTICELLO
Special Purpose Audit Reports
Year Ended December 31, 2013
Table of Contents
THIS PAGE INTENTIONALLY LEFT BLANK
-1-
INDEPENDENT AUDITOR’S REPORT ON INTERNAL CONTROL
OVER FINANCIAL REPORTING AND ON COMPLIANCE AND OTHER MATTERS
BASED ON AN AUDIT OF FINANCIAL STATEMENTS PERFORMED IN
ACCORDANCE WITH GOVERNMENT AUDITING STANDARDS
To the City Council and Management
City of Monticello, Minnesota
We have audited, 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, the financial statements of the governmental
activities, the business-type activities, each major fund, and the aggregate remaining fund
information of the City of Monticello, Minnesota (the City) as of and for the year ended December 31,
2013, and the related notes to the financial statements, which collectively comprise the City’s basic
financial statements, and have issued our report thereon dated June 27, 2014.
INTERNAL CONTROL OVER FINANCIAL REPORTING
In planning and performing our audit of the financial statements, we considered the City’s internal control
over financial reporting (internal control) to determine the audit procedures that are appropriate in the
circumstances for the purpose of expressing our opinions on the financial statements, but not for the
purpose of expressing an opinion on the effectiveness of the City’s internal control. Accordingly, we do
not express an opinion on the effectiveness of the City’s internal control.
Our consideration of internal control was for the limited purpose described in the preceding paragraph
and was not designed to identify all deficiencies in internal control that might be material weaknesses or
significant deficiencies and, therefore, material weaknesses or significant deficiencies may exist that were
not identified. However, as described in the accompanying Schedule of Findings and Responses, we
identified certain deficiencies in internal control that we consider to be material weaknesses and
significant deficiencies.
A deficiency in internal control exists when the design or operation of a control does not allow
management or employees, in the normal course of performing their assigned functions, to prevent, or
detect and correct, misstatements on a timely basis. A material weakness is a deficiency, or combination
of deficiencies, in internal control such that there is a reasonable possibility that a material misstatement
of the City’s financial statements will not be prevented, or detected and corrected, on a timely basis. We
consider the deficiency described in the accompanying Schedule of Findings and Responses as item
2013-001 to be a material weakness.
(continued)
-1-
-2-
COMPLIANCE AND OTHER MATTERS
As part of obtaining reasonable assurance about whether the City’s financial statements are free from
material misstatement, we performed tests of its compliance with certain provisions of laws, regulations,
contracts, and grant agreements, noncompliance with which could have a direct and material effect on the
determination of financial statement amounts. However, providing an opinion on compliance with those
provisions was not an objective of our audit and, accordingly, we do not express such an opinion. The
results of our tests disclosed no instances of noncompliance or other matters that are required to be
reported under Government Auditing Standards.
THE CITY’S RESPONSES TO THE FINDINGS
The City’s responses to the findings identified in our audit are described in the accompanying Schedule of
Findings and Responses. The City’s responses were not subjected to the auditing procedures applied in
the audit of the financial statements and, accordingly, we express no opinion on them.
PURPOSE OF THIS REPORT
The purpose of this report is solely to describe the scope of our testing of internal control and compliance
and the results of that testing, and not to provide an opinion on the effectiveness of the City’s internal
control or on compliance. This report is an integral part of an audit performed in accordance with
Government Auditing Standards in considering the City’s internal control and compliance. Accordingly,
this report is not suitable for any other purpose.
Minneapolis, Minnesota
June 27, 2014
-3-
INDEPENDENT AUDITOR’S REPORT
ON MINNESOTA LEGAL COMPLIANCE
To the City Council and Management
City of Monticello, Minnesota
We have audited, 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, the financial statements of the governmental
activities, the business-type activities, each major fund, and the aggregate remaining fund information of
the City of Monticello, Minnesota (the City) as of and for the year ended December 31, 2013, and the
related notes to the financial statements, which collectively comprise the City’s basic financial statements,
and have issued our report thereon dated June 27, 2014.
The Minnesota Legal Compliance Audit Guide for Political Subdivisions, promulgated by the Office of
the State Auditor pursuant to Minnesota Statute § 6.65, contains seven categories of compliance to be
tested: contracting and bidding, deposits and investments, conflicts of interest, public indebtedness,
claims and disbursements, miscellaneous provisions, and tax increment financing. Our audit considered
all of the listed categories.
In connection with our audit, nothing came to our attention that caused us to believe that the City failed to
comply with the provisions of the Minnesota Legal Compliance Audit Guide for Political Subdivisions,
except as described in the Schedule of Findings Responses as items 2013-002 and 2013-003. However,
our audit was not directed primarily toward obtaining knowledge of such noncompliance. Accordingly,
had we performed additional procedures, other matters may have come to our attention regarding the
City’s noncompliance with the above referenced provisions.
The City’s responses to the legal compliance findings identified in our audit have been included in the
Schedule of Findings and Responses. The City’s responses were not subject to the auditing procedures
applied in our audit of the financial statements and, accordingly, we express no opinion on them.
The purpose of this report is solely to describe the scope of our testing of compliance and the results of
that testing, and not to provide an opinion on compliance. Accordingly, this report is not suitable for any
other purpose.
Minneapolis, Minnesota
June 27, 2014
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CITY OF MONTICELLO
Schedule of Findings and Responses
Year Ended December 31, 2013
-4-
A. FINDINGS – INTERNAL CONTROL OVER FINANCIAL REPORTING
2013-001 PRIOR PERIOD ADJUSTMENT
Criteria – Management is responsible for establishing and maintaining effective internal
controls over the financial reporting process. These controls include the responsibility for the
preparation of the City of Monticello, Minnesota’s (the City) comprehensive annual financial
report in accordance with accounting principles generally accepted in the United States of
America.
Condition – During our audit, we noted a material prior period adjustment, as detailed in the
notes to basic financial statements, that was necessary to adjust special assessment receivables
to correctly report special assessments that had been duplicated in the City’s records and special
assessments that were contemplated but never assessed to the property owners by the City.
Auditing standards consider the necessity of recording a material prior period adjustment to be
indicative of a material weakness in the related internal controls.
Context – Assets and revenues reported in the prior periods for the City’s governmental
activities were overstated by $3,282,241. Consequently, net position reported for the
governmental activities as of December 31, 2013 was overstated by $3,282,241. This is a
current year finding.
Cause – The City’s internal controls were properly designed to monitor special assessments.
However, the internal controls were not properly implemented.
Effect – The City’s basic financial statements, as of and for the year ended December 31, 2013,
contained a material misstatement.
Recommendation – We recommend that the City review its accounting procedures and
internal controls for special assessments to assure transactions such as these are properly
reported in the future.
Management Response – There is no disagreement with the audit finding. The City will
review controls over special assessments to ensure proper financial statement presentation. The
nature and details of the misstatement have been reviewed with the individuals responsible and
appropriate guidance has been given to assure such transactions are reported correctly in the
future. Finance Director, Wayne Oberg will monitor the implementation of these corrective
actions.
B. MINNESOTA LEGAL COMPLIANCE AUDIT
2013-002 CLAIMS DECLARATION – PAYROLL
Criteria – Minnesota Statute § 412.271, Subd. 2, paragraph (b), requires supervisors, or other
officers or employees having knowledge of the facts, to sign a declaration indicating the facts
recited on the payroll are correct to the best of the declarant’s information and belief. The
statute also requires that claims for payroll be signed in proper forms or with a declaration to
the effect that the employee has received the wages and has done the work for which wages
have been paid.
CITY OF MONTICELLO
Schedule of Findings and Responses (continued)
Year Ended December 31, 2013
-5-
B. MINNESOTA LEGAL COMPLIANCE AUDIT (CONTINUED)
2013-002 CLAIMS DECLARATION – PAYROLL (CONTINUED)
Condition – During the audit procedures for the year ended December 31, 2013, we noted that
the payroll claims for several community center employees did not have the required signed
declarations from employees.
Context – This is a current year finding.
Cause – This was an oversight by city personnel.
Effect – Employees could be receiving wages for which they have not done the work.
Recommendation – We recommend that the City obtain a signed declaration to the effect that
the facts recited on the payroll are correct to the best of the declarant’s information and belief
and that the employee has received the wages and done the work for which wages have been
paid.
Management Response – There is no disagreement with the audit finding. The City will
review its internal payroll authorization process and make any necessary changes to prevent
future occurrences of this finding.
2013-003 PAYMENT OF INVOICES
Criteria – Minnesota Statute § 471.425, Subd. 2.
Condition – Minnesota Statutes require prompt payment of local government bills within a
standard payment period of 35 days from the receipt of goods and services for governing
boards that meet at least once a month. One disbursement tested was not paid within the
statutory time limit.
Context – One out of twenty-five disbursements tested were not in compliance. This is a
current year finding.
Cause – This was an oversight by city personnel.
Effect – Certain payments made to vendors were not paid within the timeframe as required by
state statutes.
Recommendation – We recommend that the City review current procedures in place to ensure
that all invoices are paid within statutory requirements.
Management Response – There is no disagreement with the audit finding. The City will
review its procedures in place to ensure future compliance with the statute.
CityCouncilAgenda:07/14/14
1
7B.Considerationofprovidingdirectiontostaffrelatingtopublicauctionoftax-
forfeitedlotsintheCityofMonticelloandletterofrecommendationtoWright
County (AS/CS)
A.REFERENCEANDBACKGROUND:
OnApril28,2014,theCouncilorderedtheHillsideFarm3rd and4th AdditionsPublic
Improvementsandcertifiedtheassessmentsassociatedwiththeproject.These
improvementshavebeencertifiedagainstthe47vacantpropertiesinHillside3rd and4th
Addition.The47lotshadpreviouslygoneintotaxforfeitureandarebeingmanagedby
WrightCounty.
Asnotedpreviously,itistheCity’sunderstandingthatWrightCountyintendstoauction
the47lots.Priortoanysaleofthelots,WrightCounty’sTaxForfeitCommitteewill
reviewthepropertiesandestablishabasevalueforeachofthelots.WrightCounty’s
TaxForfeitCommitteewillmeetonJuly15th,2014tosetthevalueoftheselots.
Inthevaluationprocess,theCountyisrequiredtoaddthevalueofthenewspecial
assessmentstothevalueofthelotestablishedforthepublicauctionaccordingtostate
rulesgoverningthesaleoftaxforfeitproperties.Therefore,thenewly-certified
assessmentsintheamountof$4,425.53each,willbeincludedinthebasevalueforthe
47lotsatHillsideFarm3rd and4th Addition.
ItwasalsonotedtotheCityCouncilinApril,thatwhenaparcelbecomestaxforfeit,
previously-certifiedspecialassessmentsarecancelledbythecounty.HillsideFarm3rd
and4th Additionshadunpaidbalancesremainingonthespecialassessmentswhenthey
werecancelledfortaxforfeiture.LotsinHillside3rd haveanunpaidbalanceof
$8,960.99eachandlotsinHillside4th haveanunpaidbalanceof$12,072.26eachin
cancelledassessments.Thesepastdueamountsarenotspecificallyincludedinthe
startingvalueofthelotsupforpublicauction.However,WrightCountycanconsider
theseamountswhensettingthebasevalueofthelotsforsale/auction.
Recentchangestotherulesgoverningthesaleorauctionoftaxforfeitpropertiesalso
requiresthatallproceedsfromthepropertysales(includingproceedsfrom all sales
throughoutWrightCounty,notjustHillsideFarmorMonticello)arepooled.The
certifiedspecialassessmentsonpurchasedlotsarethentakenoutofthoseproceedsand
paiddirectlytothejurisdictionwhichcertifiedtheassessments.Oncetheseassessments
arepaid,theCountythenmustalsopayoutoftheproceedsthepreviously-cancelled
assessmentsdirectlytoeachjurisdictionaccordingtothecalculationmethodspecifiedin
thestaterules.TheCitycouldreceivealloraportionofthecancelledassessments
dependingonthebalanceremainingintheproceeds.
Ifforanyreasonthesaleproceedsarenotenoughtocoverthecancelledspecial
assessments,theCityalsohastheabilitytoreassessthecancelledassessmentbalances
oncethelotshavebeensoldandarereturnedtothetaxrolls.WrightCountyhas
indicatedtheycouldinformbuyersofthepotentialthatthiscouldhappen.Council
shouldnotethattheCityhastofollowaprocesstore-certifytheassessments;thiswould
CityCouncilAgenda:07/14/14
2
comebacktoCouncilforpublichearingandapprovalsimilartotheoriginalcertification
ofassessments.
Atthistime,staffisaskingtheCityCounciltoapprovealetterofrecommendation
relatedtotheabove.Theletterofrecommendationstates:
1.TheCityunderstandstheCountyisrequiredtoincludethenewlycertified
assessmentsinthebasevalueforlotsale.
2.TheCityrecommendstheCountyincludetheamountsofthepreviouslycertifiedand
nowcancelledassessmentsinthebasevalueforlotsale.Doingsowillsupportthe
repaymentoftheseassessmentstotheCityofMonticello.
3.TheCityisstatingasamatterofpublicrecordthatitintendstore-certifyanyamount
ofthepreviouslyleviedassessmentsthatarenotrecoveredfromlotsaleproceeds.
4.AnotationregardingtheexistingPlannedUnitDevelopmentandlotstandards.
TheCouncilisalsoaskedtoprovidedirectionononeadditionalmatterfortheletterof
recommendation.DuringtheMarchCouncilmeeting,therewasashortdiscussion
regardingwhethertheCityshouldrecommendtotheTaxForfeitCommitteethatthelots
besoldinoneblock,smallerblocks,orasindividuallots.Nodirectrecommendation
wasmadebytheCouncilonthematteratthattime.StaffisrequestingthatCouncil
providesuchdirectionnowforpurposesofcompletingandsubmittingtheletterof
recommendationtotheCounty.
StaffwouldsuggestarecommendationthatLots3through7,Block1ofHillsideFarm
4th Additionbesoldasoneblock.Thisisduetothelargecontinuousretainingwallthat
isrequiredalongthenorthernedgeofthelots.Theacquisitionofthelotsbyone
developeriscriticaltomanagingthecostandproperconstructionperapproved
developmentplansforthatwall.Thecostofthe10-foothighwallwithrailingwas
estimatedat$130,000;however,multiplewallsorre-gradingofthebackyardswhilestill
maintainingplanneddrainagepatternscouldreducethecost.Thecostofthewallmay
alsoimpactthevaluationsetbytheTaxForfeitCommitteeforthatgroupoflots.This
shouldalsobenotedintheletterofrecommendation.
A1.BudgetImpact:Thecollectionofthenewly-certifiedandcancelledassessments
(subjecttopooledfundproceeds)wouldreimbursetheCityforexpensesincurred
inthepastasrelatedtothedevelopmentofthelots.
A2.StaffWorkloadImpact:Minimaltimeasspentindraftingthisreportandthe
draftrecommendationletter.
B.ALTERNATIVEACTIONS:
1.MotiondirectingcitystafftosubmitaletterofrecommendationtoWrightCounty
regardingpreferencesforpublicauctionoftax-forfeitedparcelsintheCityof
Monticello,includingCouncil’sstatedrecommendationasrelatedtothesaleof
lotsinblocksorindividually.
CityCouncilAgenda:07/14/14
3
2.Motionofother.
C.STAFFRECOMMENDATION:
CitystaffrecommendsapprovingAlternative#1.Staff’sunderstandingfromboththe
CountyAttorneyandAuditor’sofficeisthataletterofrecommendationfromtheCity
CouncilisanimportantsupportingdocumentfortheTaxForfeitCommittee’s
considerationisestablishingbasevalues.
D.SUPPORTINGDATA:
A.DraftLetterofRecommendation
B.PlatofHillsideFarm3rd and4th Addition
C.AerialImage,HillsideFarm
D.Spreadsheetshowingassessmentsassociatedwithlotstobesoldatpublicauction
E.ExcerptfromstaterulesrelatedtoTaxForfeiture
July14th,2014
TaxForfeitCommittee,WrightCounty
102nd StreetNW
Buffalo,MN55313
RE:ValuationHearing,TaxForfeitPropertiesatHillsideFarm3rd and4th Addition,Cityof
Monticello
Commissioners,
TheCityofMonticelloappreciatestheopportunitytoprovideinputregardingthevaluationfor
saleorauctionof47vacantsingle-familylotsinHillsideFarm3rd and4th Addition.
Regardingtheestablishmentofthebasevalueforthefuturesaleand/orauctionofthese
properties,theCityrespectfullysubmitsthefollowingcommentsandrecommendations.
1.TheCityunderstandsthatWrightCountyisrequiredtoincludethenewlycertified
assessmentsintheamountof$4425.53inthebasevalueforeachindividuallotsale.
2.TheCityrecommendsthatWrightCountyincludetheamountsofthepreviously-
certifiedandnowcancelledassessmentsinthebasevalueforlotsale.Doingsowill
supporttherepaymentoftheseassessmentstotheCityofMonticello.
a.LotsinHillside3rd haveanunpaidbalanceof$8,960.99eachincancelled
specialassessments.
b.LotsinHillside4th haveanunpaidbalanceof$12,072.26eachincancelled
specialassessments.
3.TheCityisstatingasamatterofpublicrecordthatitintendstore-certifyanyamount
ofthepreviously-leviedassessmentsthatarenotrecoveredfromlotsaleproceeds.
AnyabilityonthepartofWrightCountytoconveythisintentiontoapotentialbuyer
isencouraged.
4.TheCityisstatingasamatterofpublicrecordthatHillsideFarm3rd and4th Addition
arepartofanapprovedConditionalUsePermitforPlannedUnitDevelopment,
whichrunswiththelotsandisbindingonallsuccessors,heirsandassigns.All
developmentofthepropertiesshallbeinaccordancewiththeapprovedPUDand
correspondingdevelopmentplans.
5.TheCityrecommendsthesaleofthelotsasindividualparcels,ratherthanasblockof
lots,withoneexception.
a.ItisrecommendedthatLots3-7,Block1,HillsideFarm4th Additionbesold
asoneblock.Thisisduetothelargecontinuousretainingwallthatis
requiredalongthenorthernedgeofthelots.Theacquisitionofthelotsbyone
owner/developeriscriticaltomanagingthecostandproperconstructionper
approveddevelopmentplansforthatwall.Itisnotedthattheconstruction
costofthewallmayalsoimpactthevaluationsetbytheTaxForfeit
Committeeforthatgroupoflots.
TheCityofMonticellosincerelyappreciatestheeffortsoftheTaxForfeitCommitteeandthatof
thewholeofWrightCountyinmanagingthesaleofthesepropertiesandtheopportunityto
providepubliccommentonthismatter.
Sincerely,
MayorClintHerbst,
onbehalfoftheCityCounciloftheCityofMonticello
0 200ft
PID LOCATION ACREAGE CANCELLEDASMTS NEWASMTS COMMENTS
155-168-001040L4B1,Parkside@MO2nd.61ac9,058.92NAbuildablelot;containswetlands-goto
auction
155-168-001050L5B1,Parkside@MO2nd.74ac5,939.24NAbuildablelot;containswetlands-goto
auction
PARKSIDETOTALS 14,998.16
155-199-001010Hillside3rdvaries8,960.994,425.53vacantlot;gotoauction
155-199-0010208,960.994,425.53
155-199-001030 8,960.99 4,425.53
155-199-001040 8,960.99 4,425.53
155-199-001050 8,960.99 4,425.53
155-199-001060 8,960.99 4,425.53
155-199-001070 8,960.99 4,425.53
155-199-001080 8,960.99 4,425.53
155-199-001090 8,960.99 4,425.53
155-199-001100 8,960.99 4,425.53
155-199-001110 8,960.99 4,425.53
155-199-001120 8,960.99 4,425.53
155-199-001130 8,960.99 4,425.53
155-199-001140 8,960.99 4,425.53
155-199-001150 8,960.99 4,425.53
155-199-001160 8,960.99 4,425.53
155-199-002010 8,960.99 4,425.53
155-199-002020 8,960.99 4,425.53
155-199-002030 8,960.99 4,425.53
155-199-002040 8,960.99 4,425.53
155-199-002050 8,960.99 4,425.53
155-199-002060 8,960.99 4,425.53
155-199-002070 8,960.99 4,425.53
155-199-002080 8,960.99 4,425.53
155-199-002100 8,960.99 4,425.53
155-199-002110 8,960.99 4,425.53
155-199-002120 8,960.99 4,425.53
155-199-002130 8,960.99 4,425.53
155-199-002140 8,960.99 4,425.53
155-199-002150 8,960.99 4,425.53
Hillside3Subtotals 268,829.70 132,765.90
155-201-001010Hillside4thvaries12,072.264,425.53vacantlot;gotoauction
155-201-001020 12,072.26 4,425.53
155-201-001030 12,072.26 4,425.53
155-201-001040 12,072.26 4,425.53
155-201-001050 12,072.26 4,425.53
155-201-001060 12,072.26 4,425.53
155-201-001070 12,072.26 4,425.53
155-201-002010 12,072.26 4,425.53
155-201-002020 12,072.26 4,425.53
155-201-002030 12,072.26 4,425.53
155-201-002040 12,072.26 4,425.53
155-201-002050 12,072.26 4,425.53
155-201-002060 12,072.26 4,425.53
155-201-002070 12,072.26 4,425.53
155-201-002080 12,072.26 4,425.53
155-201-002090 12,072.26 4,425.53
155-201-002100 12,072.26 4,425.53
Hillside4Subtotals 205,228.42 75,234.01
HILLSIDE3&4TOTALS 474,058.12207,999.91
CITYOFMONTICELLO-2014TAXFORFEITPARCELSFORPUBLICAUCTION
CityCouncilAgenda:07/14/14
1
7C.Considerationofselectingprojectareafor2014StreetLightingimprovements,City
ProjectNo.XXX (SB/TM)
A.REFERENCEANDBACKGROUND:
TheCityCouncilstartedimplementingastreetlightingprogramin2006withtheintent
toprovidelightingalongcollectorroadwayandpedestriancorridors.Thisprogram
supplementedpreviouspracticesofjustlightingintersections,otherhighuseareas,
knowndarkareas,etc.SincethattimetheCityhasprovidedcorridorlightingalong
SchoolBoulevard,CedarStreet(fromsouthofSchoolBlvdtoChelseaRoad),Chelsea
Road(betweenFallonAvenueandCSAH18),E7th Street(betweenCedarStreetand
CSAH18)andin2013alongthenewW7th StreetbetweenElmStreetandMinnesota
StreetthroughanagreementwithWright-HennepinElectric.Allocationsfromelectric
franchisefeesagreementhavefundedtheCity’sstreetlightingprogram.
InareaswhereexistinglightingisownedandmaintainedbyXcelEnergy,in-fillstreet
lighting(non-LED)hasbeeninstalledbyXcelEnergybyCityrequestwiththeCity
payingonlythemonthlyelectricchargesofapproximately$10perlight.
TocontinuetheCity’sstreetlightingprogram,staffhasevaluatedotherareasintheCity
thatCouncilshouldconsiderlightingassummarizedbelow:
1.W7th StreetbetweenCR39andElmStreet
2.ElmStreetbetween7th Streetand6th Street
3.ChelseaRoadbetweenCR39and90th Street
4.OakwoodDriveandCedarStreet(betweenOakwoodDriveandChelseaRoad)
5.MeadowOakAvenuebetweenCSAH18andBroadway
6.6th Street-mid-blocklightingbetweenTH25andLinnStreet
7.Cul-de-sacscontinuetothedrivenbyresidentpetition
ItisrecommendedthattheCouncileitherconsidernewLEDlightingonW7th Street
betweenCR39andElmStreetorChelseaRoadbetweenCR39and90th Streetfor
installationin2014(Item#’s1-3above).Bothoftheseroadwayshavehighervolumesof
trafficthantheotherroadwaysandwouldcontinuethestreetlightingthatalreadyexists
alongthesecorridors.SincetheextensionofW7th Streetin2013,therehasbeenan
increaseintrafficalong7th StreetbetweenElmStreetandCR39andElmStreetnorthof
7th Street.Futuredevelopmentintheseareaswillgeneratemoretrafficanditwouldbe
advantageoustofinishlightingofthe7th StreetcorridorwhilealsomeetingtheCity’s
objectiveoflightingallcollectorroadwayareas.Itisrecommendedthatadditional
lightingalongElmStreetbetween6th Streetand7th StreetbeconsideredbyhavingXcel
Energyinstallapproximately2-3lightfixturesontheexistingpolesthatmatchwhat
alreadyexistsalongElmStreet.XcelEnergywouldfurnishandinstallthelightswiththe
Citypayingonlythemonthlyelectricchargesofapproximately$10perlight.
TheCouncilcouldalsoconsidernewLEDlightingonChelseaRoadbetweenCR39and
90th Streetasthisisanotherhighvolumeroadway.Inaddition,therehasbeen
CityCouncilAgenda:07/14/14
2
developmentinterestinanadjacentparcelalongChelseaRoadandlightingthepathway
shouldbeconsideredaswell.
StaffreceivedaquotefromWright-HennepinElectricServicesforapproximately
$115,000forlighting7th StreetbetweenCR39andElmStreet.Thisincludes13LED
lightassemblies(130watt)thatare25-feettallwithaluminumpolesalternatingonboth
sidesofthestreet.ThelightfixtureswouldmatchtheexistinglightsalongthenewW7 th
Streetwithapproximately200-footspacing.Thestreetlightswouldbewiredandwould
includeabrackettoaccommodatefuturesidewalklightingforfuturedevelopmentonthe
northandsouthsidesofW7th Street.
StaffalsoreceivedaquotefromWright-HennepinElectricServicesforapproximately
$195,000forlightingChelseaRoadbetweenCR39and90th Street.Thisincludes19
LEDlightassemblies(130watt)thatare25-feettallwithaluminumpolesalternatingon
bothsidesofthestreet.Thecostincludes10doublefixturelightstolightthetrailalong
thesouthsideofChelseaRoad.Inaddition,thestreetlightswouldbewiredandwould
includeabrackettoaccommodatefuturesidewalklightingforfuturedevelopmentonthe
northsideofChelseaRoad.Otheroptionstoconsiderareretrofittingtheexistinghigh
pressuresodiumlightstoLEDlights(keepingthefixturesthesame)alongChelseaRoad
betweenSandburgRoadand90th Street,installadditionalin-filllightingandalsoprovide
traillighting.
ItisrecommendedthatlightingbecompletedalongOakwoodAvenue,CedarStreetand
MeadowOakAvenue(Item#’s4-5above)in2015whensidewalkimprovementsare
anticipatedtobeimplementedalongOakwoodAvenueandpotentialdevelopmentcould
occuralongMeadowOakAvenue.
PublicWorksiscontinuingtoevaluateifitisbeneficialtocontinuethemaintenance
contractwithWHElectricServicesorcontractwithanelectricianonanannualbasisfor
allLEDlightingmaintenanceneeds.
A1.BudgetImpact:TheestimatedcosttoimplementLEDlightingonW7th Street
is$115,000and$195,000alongChelseaRoadWestasdescribedabove.
Approximately$130,000isallocatedeachyearforstreetlightingimprovements
throughtheelectricfranchiseagreements.ThefundbalanceintheStreetLighting
ImprovementFundisapproximately$800,000.Financerecommendsmaintaining
alevelofsustainableannualexpendituresforstreetlightingimprovements.
A2.StaffWorkloadImpact:EngineeringandPublicWorksstaffwillcontinueto
managetheproject.
B.ALTERNATIVEACTIONS:
1.MotiontoselectW7th StreetbetweenCR39andElmStreetandElmStreet
between7th Streetand6th Streetforthe2014StreetLightingImprovements.
CityCouncilAgenda:07/14/14
3
2.MotiontoselectChelseaRoadbetweenCR39and90th Streetforthe2014Street
LightingImprovements
3.Motiontodenyauthorizationtoproceedwithastreetlightingprojectatthistime.
C.STAFFRECOMMENDATION:
StaffrecommendsAlternate#1.SincetheextensionofW7th Streetin2013,therehas
beenanincreaseintrafficalong7th StreetbetweenElmStreetandCR39andElmStreet
northof7th Street.Futuredevelopmentintheseareaswillgeneratemoretrafficandit
wouldbeadvantageoustofinishlightingofthe7th Streetcorridorwhilealsomeetingthe
City’sobjectiveoflightingallcollectorroadwayareas.
IfCouncilproceedswithselectingaproject,staffwillpresentastreetlightingcontract
forCouncilconsiderationattheJuly28,2014meeting.
D.SUPPORTINGDATA:
WHEServices–Quotefor7th StreetWest
WHEServices–QuoteforChelseaRoadWest
LEDlightingbrochure
7/7/2014
Quotation W. 7th Street
Intersection of 7th/Elm to CR 39
Quotation valid 90 days
6800 Electric Drive Prepared byPhil Glawe
Rockford, MN 55373 763-477-3096
800-943-2667
763-477-3096
Quotation for:City of Monticello W 7th Street
Shibani Bisson, PE
Municipal Senior Project Manager
Quantity Description Unit Price Amount
0 Elumen LED trail light fixture (to be installed in the future) 810.00$ -$
13 25' pole/Elumen single LED fixture/trail light ready pole 2,460.00$ 31,980.00$
25' pole with Elumen single LED fixture (roadway)2,337.00$ -$
15480 1/0 1/0 #2 AL wire 1.13$ 17,492.40$
4880 2" PVC conduit 5.52$ 26,937.60$
1 mobilization 4,891.00$ 4,891.00$
13 Furnish and Install 8" screw in anchor bases 966.00$ 12,558.00$
1 Connection to exisiting meter pedestal 1,392.00$ 1,392.00$
13 Install poles and single fixtures 851.00$ 11,063.00$
1 restoration 2,760.00$ 2,760.00$
1 Bonding and misc expense 3,292.00$ 3,292.00$
Conduit will be installed by trenching 2'0 depth
Electrical permit included, utility fees if needed by
others
112,366.00$
Tax 6.875%2,198.63$
Total 114,564.63$
Signature of acceptance:
City of Monticello
505 Walnut Street
Monticello, MN 55362
All material is guaranteed to be as specified. All work to be completed in a workmanlike manner according to standard practices. Any
alteration or deviation from above specifications involving extra costs will be executed only upon written orders, and will become an extra
charge over and above the estimate. All agreements contingent upon strikes, accidents or delays beyond our control. Owner to carry fire,
tornado and other necessary insurance. Our workers are fully covered by workman’s compensation insurance.
Total Lighting Materials/labor
Contact
Comments or special instructions:
Per your request here are the unit prices associated with the W. 7th street lighting project from intersection of
7th/Elm to CR 39
7/7/2014
Quotation Chelsea RD new LED's
Quotation valid 90 days
6800 Electric Drive Prepared byPhil Glawe
Rockford, MN 55373 763-477-3096
800-943-2667
763-477-3096
Quotation for:City of Monticello Chelsea RD install 19 new LED lights
Shibani Bisson, PE
Municipal Senior Project Manager
Quantity Description Unit Price Amount
9 AEL Autobahn ATB2 roadway fixture/25' trl lt. ready pole 2,829.00$ 25,461.00$
10 Roadway/trail fixtures/25' pole 3,835.00$ 38,350.00$
Total materials 63,811.00$
26532 #1 aluminum conductors-circuit for each side of Chelsea 1.13$ 29,981.16$
7844 2" PVC conduit for each side of Chelsea 5.00$ 39,220.00$
19 Furnish and Install 8" screw in anchor bases 966.00$ 18,354.00$
19 Install new poles and fixtures 702.00$ 13,338.00$
10 Extra to install trail lights on exisitng sidewalk (South side) 292.00$ 2,920.00$
1 Furnish and install Povlony l meter pedestal 5,336.00$ 5,336.00$
1 mobilization $8,407.00 8,407.00$
1 restoration 5,658.00$ 5,658.00$
1 Bonding and misc expense 4,092.00$ 4,092.00$
Conduit will be installed by trenching 2'0 depth
Electrical permit included, utility fees if needed by
others
191,117.16$
Tax 6.875%4,387.01$
"estimate only" pricing dependant on quantity and dates Total 195,504.17$
Signature of acceptance:
City of Monticello
505 Walnut Street
Monticello, MN 55362
All material is guaranteed to be as specified. All work to be completed in a workmanlike manner according to standard practices. Any
alteration or deviation from above specifications involving extra costs will be executed only upon written orders, and will become an extra
charge over and above the estimate. All agreements contingent upon strikes, accidents or delays beyond our control. Owner to carry fire,
tornado and other necessary insurance. Our workers are fully covered by workman’s compensation insurance.
Total Lighting Materials/labor
Contact
Comments or special instructions:
Per your request here are the unit prices associated with installing new lights along Chelsea Rd from 90th street
West to CR39,
CityCouncilAgenda:07/14/14
1
7D.Considerationofauthorizingupto$30,000forPathwaySystemImprovementsalong
CSAH75(ChestnutStreettoWestRiverStreet),CityProjectNo.XXX (TP/SB)
A.REFERENCEANDBACKGROUND:
TheParksDepartmenthasinspectedandratedtheCity’spathwaysystemannuallysince
2009andhasdevelopedaprogramtotrack,manageandperformmaintenanceofthe
pathwaysystem.Currentpracticesincludemaintainingthepathwaysystemby
performingpatching,crackfillingandfogsealingusinginhouseCityforces.Inaddition,
certainpathwayshavebeenreconstructedasneededinconjunctionwithstreet
reconstructionprojects.TheCitycurrentlyhasover17milesofpathwayswith
approximately7milesthatareplowedeachyear.
TheParksdepartmenthasusedthePACERmethodtoinspectandratethepathways(see
enclosedinformation).Inaddition,whendeterminingmethodstomaintainthepathways,
theParksdepartmentusesthefollowingcriteria:
Pavementstructureconditionandage
Drainageissues
Constructabilityofmaintenancemethod
Considerationforpathwaysthatareplowedversusnon-plowed
Frequencyofuse
TheParksDepartmenthasconsultedwithothercommunitiesandtheThreeRiversParks
Districttoobtaininformationontheirpathwaymaintenancepracticesandmethods.
SeveralcommunitiesareusingthesamepracticesMonticellohasbeenutilizingin
additiontoperformingbituminousoverlaysandreconstructingpathwaysonanannual
basis.Inadditiontotheabovemethods,somecommunitiesareusingafinerchipsealor
micro-surfacingapplicationtopreserveandextendthelifeofthepathwaysurfaceinlieu
ofanoverlay.
TheParksDepartmenthasexploredthesetechniquesandisrecommendingusinga
micro-surfacingproductcalledT-MatonthepathwayalongCSAH75betweenChestnut
AvenueandWestRiverStreet,basedontheabovecriteria,toextendthelifeofthe
pathwaybeyondthecurrentmaintenancemethods.Belowisasummaryofthehistoryof
thispathwayandmoreinformationontheT-Matproduct.
CSAH75PathwayFacts:
8-feetwide,constructedin1995with2”ofbituminouspavementover6”of
aggregatebase
Chipsealcompletedin1999onlyforsegmentsoutsideoftheOtterCreekpark
area
TestpatchusingmicrosurfacingproductfromSealMasterin2007(seeenclosed
pictures)
Higherusepathway-estimated2,000pedestriansandbicyclistsannually
CityCouncilAgenda:07/14/14
2
T-MatProduct
Finesand/emulsioncoating
Eliminatesissuewithsnowplowsstripingpavementonexistingchipsealsurface
Estimatedproductlifeis7-9yearshowever,ThreeRiversParkDistrict,Cityof
HutchinsonandCityofShoreviewhavebeenusingT-Matsurfacingforthelast
fiveyearswithnovisualchangefromoriginaldateofapplication.Theproductis
newthatwedon’tknowthetruelifeexpectancy.
Microsurfacetreatmentsaresimilartoslurrysealsandchipsealsexceptthatthey
useachemicallycontrolledcuringprocess.Theadditionalmixstability,resulting
frompolymers,allowsittobeappliedinrelativelythicklayersmakingitidealfor
fillingrutsandcorrectingotherdeformations.Microsurfacetreatmentsshouldbe
appliedoncleanpavementsandmaybeusedwhenthereisexcessiveoxidation
andhardeningofthesurface.Theapplicationisperformedwitha“Zamboni”type
equipmentthathasasqueegeeontherearofmachineallowingtheapplicatorto
adjustthethicknessofmaterial.Theprocessiscompletedwithtwocoats.The
firstcoatwillflowintoalltheimperfectionsofpathandthelastcoatwillbethe
wearcourse.Intheshadedareasofthepathway,anacceleratorforthematerial
willbeusedtohelpproductdryfaster.
InformalquoteswereobtainedfromtwocontractorstoplacetheT-Matproductatacost
ofapproximately$30,000.IfCouncilauthorizesthiswork,theParksdepartmentand
Engineeringdepartmentstaffwillfinalizethespecificationsandconstructiondocuments
toobtainformalquotes.Itisanticipatedthattheconstructioncostwillnotexceed
$30,000.ConstructionwouldtakeplaceinAugustoveraoneweekperiod.
Itshouldbenotedthatstaffhadalsoevaluatedthecosteffectivenessandsustainabilityof
continuingtousecurrentpracticesofcrackfilling,potholing,andfogsealingthis
pathwayinadditiontoevaluatingcompletingabituminousoverlayorreconstructingthe
pathway.ItisrecommendedtousetheT-MatproductontheproposedCSAH75pathway
basedonthefactorsoutlinedinthisreport.
TheCouncilshouldalsoconsiderthefollowingpracticesforfuturepathway
maintenance:
Fogsealpathwaysinconjunctionwithstreetchipsealingandfogsealingcontract
Continuetoreconstructpathwaysasneededwithstreetreconstructionprojects
StaffisalsoevaluatinggapsintheCity’spathwayandsidewalksystemanddevelopinga
CIPforbudgetingpurposesfortheupcomingyears.
A1.BudgetImpact:Approximately$50,000wasbudgetingintheGeneralFundfor
pathwaymaintenancefor2014.TheestimatedcosttoplacetheT-matproducton
theCSAH75pathwaybetweenChestnutAvenueandWestRiverStreetis
$30,000.
A2.StaffWorkloadImpact:Parksdepartmentstafftimewillbeutilizedtomanage
theproject.
CityCouncilAgenda:07/14/14
3
B.ALTERNATIVEACTIONS:
1.Motiontoauthorizeupto$30,000forPathwaySystemImprovementsalong
CSAH75(ChestnutStreettoWestRiverStreet),CityProjectNo.XXX.
2.Motiondenyingauthorizationforpathwayimprovementsatthistime.
C.STAFFRECOMMENDATION:
StaffrecommendsAlternate#1.TheCity’spathwaysystemisavitalassettothe
community.Whensurveyed,residentsinthecommunitystatedthatparksandpathways
wereoneofthetopreasonswhytheylikedtheirneighborhoods(Monticello
ComprehensivePlan,CommunitySurvey).Inaddition,walking/bikingpathsscored
highestinthetypesofamenitymostoftenusedandmostdesiredfortheCity’spark
system(Park&PathwayPlan,CommunitySurvey).Thereforeitiscriticaltokeepupon
thepreservationofthepathwaysystem.
Inaddition,itisimportanttonotethatthepathwaysinthecommunityserveasboth
transportationandrecreationsystems.Pathwaysrunningalongmajortransportation
corridors,includingCSAH75,provideanimportanttransportationalternativewhichrequires
regularmaintenance,similartotheCity’sstreetsystem.
TheParksCommissionalsoreviewedandmadearecommendationtoapprove
installationofT-Matsurfacing.
D.SUPPORTINGDATA:
A.PathwayMap
B.T-MatProductInformation(sampleofproductwillbedemonstratedatthemeeting)
C.QuotefromAsphaltContractorsInc.
D.QuotefromMinnesotaAsphalt(tobeprovidedatorbeforetheCouncilmeeting)
D ŽŶƟƐƐŝƉƉŝWĂƌŬTRAILHEAD
PATHWAY
DEEGANCT
Proposal # 2014-1657
Date:Thursday, June 12, 2014
10285 89th Ave. N. • Maple Grove, MN 55369
Ph. (763) 424-9191 • Fax (763) 424-9190
Qty Proposed Service(s) & Description(s)Depth
Site Description: # S120393
Various Trails in Monticello
909 Golf Course Rd.
Monticello, MN 55362
Site Contact:
Site Phone:
Site Email:
Prepared By:
David Johnson
Contact Information:
Mobile: 612-251-7360
Office: 763-424-9191
E-mail: davidj@aciasphalt.com
Project Manager:
David Johnson
Mobile: 612-251-7360
Submitted To:
Tom Pawel
City Of Monticello
909 Golf Course Rd.
Monticello, MN 55362
Contact Information:
Phone: (763) 271-3276
Mobile:
E-mail: Tom.Pawelk@ci.monticello.mn.us
Traffic Control
Service Description
Install type III barricades at the end of trail at all street locations. Install 20 feet of 4
foot orange safty fencing at each barricade. These items will be removed at the set
time and date that has been discussed with the owner or owners agent.
$1,590.001Lump Sum
T-Mat Asphalt Resurfacer w/Adhesion Promoter
Service Description
T-Mat surface treatment is a high performance mineral and fiber reinforced asphalt
emulsion blended with polymers for superior adhesion, flexibility and durability. T-
Mat replenishes the pavement binder that is lost through oxidation and weathering
while providing a slip-resistant durable surface treatment. Clean asphalt with power
blowers and sweeper if needed. Apply T-Mat in two coats at a rate of .50 gallon per
square yard. Adhesion promoter is applied at a rate of 200 square feet per gallon.
Adhesion promoter helps T-Mat bond to bituminous surfaces in highly shaded areas.
(Vehicles need to be cleared and irrigation systems need to be turned off for 24
hours.)
$12,784.973,440 Sq. Yds.
T-Mat Asphalt Resurfacer
Service Description
T-Mat surface treatment is a high performance mineral and fiber reinforced asphalt
emulsion blended with polymers for superior adhesion, flexibility and durability. T-
Mat replenishes the pavement binder that is lost through oxidation and weathering
while providing a slip-resistant durable surface treatment. Clean asphalt with power
blowers and sweeper if needed. Apply T-Mat in two coats at a rate of .50 gallon per
square yard. (Vehicles need to be cleared and irrigation systems need to be turned
off for 24 hours.)
$13,103.713,932 Sq. Yds.
Trail Preperation (Optional Cost $1,560.00)
Service Description
Clean all edges of trail of dirt and debris.
1 Lump Sum
Professional People, Progressive Solutions
www.aciasphalt.com
Asphalt Thermal Bond Infrared Patching (Optional Cost $1,730.07)
Service Description
Sweep away any loose soil or standing water from the area to be repaired. Heat area
as specified using infrared thermal bond patch machine. Position the infrared panel
(either 5’ x 7’ or 5’ x 3.5’) over the repair area. Allow infrared heat to penetrate for 5
to 9 minutes depending on depth, season, and aggregate. Rake softened in place
material and remove failed material as needed. Spray asphalt rejuvenator onto the
heated area. This will replace some of the light oils that have oxidized over time. Add
new asphalt hot mix as necessary to meet the proper grade. Rake and level the
patch area to the correct grade and compact with a vibratory roller.
11 Heats
Accepted Authorized Signature
Pavement Consultant David Johnson
This proposal may be withdrawn at our option if not accepted within 7 days of Jun 12, 2014
PAYMENT TERMS 0 Down, Balance Net 30 Project Total: $27,478.68
SERVICE TERMS Landscape restoration not included in scope of work unless specifically noted. ACI is not responsible for
damage to irrigation systems when not properly marked by client. Customer will be notified when work is to be performed. It is the
customer's responsibility to make sure the irrigation systems are shut off as to not cause damage to the work performed.
Professional People, Progressive Solutions
www.aciasphalt.com
TERMS, CONDITIONS & GUARANTEE
ACI Asphalt Contractors, Inc. hereafter referred to as “ACI”
Asphalt Guarantee
Fully covering labor, and materials against breakup for a period of 1 year(s).
Any request made to “ACI” by the owner, general contractor or their respective authorized supervisory employees to overlook the
standard practices and procedures previously stated in these conditions will automatically negate any guarantee of material or
workmanship whether such guarantee is written, implied or orally stated. Guarantee does not cover markings from sharp pointed objects,
power steering created tire marks, or drippings from solvents and gas. Guarantee does not cover heaving of asphalt, subgrade failure,
settling or expansion cracks due to freeze thaw weather cycle or tree roots. Asphalt is a machine laid surface which has seams that are
sometimes noticeable. The surface texture of hand laid areas may not be uniform to machine laid areas, due to hand raking. “ACI” shall
not be liable for water ponding or retention in surrounding areas of patching due to current grades or construction method chosen.
Guarantee does not cover damage caused by acts of third parties.
Sealcoat Guarantee
“ACI” will guarantee sealers(Asphalt emulsions and Blended sealers) from chipping and peeling for a period of 1 year. This guarantee
does not include wearing of sealer and adherence of sealer to oil spots, hydraulic spots and tree sap. Guarantee does not cover damage
caused by acts of third parties.
Terms: Terms are as stated above. If payment is not made in accordance with the above terms, the customer agrees to pay any
collection, legal fees and interest for any unpaid balances. Interest will accrue at a rate of .66% per month from the date of completion.
Terms of guarantee are contingent upon receipt of final payment.
PRICE is based on specifications and estimates as shown on the “Proposal & Agreement”. Field measurements may be made when the
job is completed and any changes of specifications, areas, tonnage, or gallonages will correspondingly change the completed price. One
mobilization charge is included in price, unless stated on the “Proposal & Agreement”. Additional mobilization charges will be at the rate
set forth in agreed upon change order which is made part and parcel of these conditions and “Proposal & Agreement”.
ADDITIONAL CHARGES may become necessary if permit(s), extra equipment time, extra materials, or extra labor would become
necessary to complete this job, if subgrade is not up to acceptable specifications or requirements or if extra services and/or materials are
requested in writing by the owner or general contractor of their respective authorized supervisory employees. “ACI” shall not be held
liable for damage to surrounding areas of driveway or parking lot due to poor subgrade, moisture, or other unforeseen circumstance.
Additional charges would be in accordance with the agreed upon change order which is made part and parcel of these conditions and
“Proposal & Agreement”. “ACI” reserves the right to refuse additional equipment time, extra materials or extra labor if it would interfere
with advanced scheduling with other customers with whom previous commitments had already been extended.
Conditions: The above prices, specifications and conditions are satisfactory and are hereby accepted. You are contracted to do the work
as specified and the stated payment terms are acceptable. All material is guaranteed to be as specified. All work is to be completed in a
workmanlike manner in accordance to standard construction practices. Any deviation from this proposal or extra work will be executed
only upon owner or owners agent orders and may become an extra charge over and above this agreement. All agreements are
contingent upon delays beyond our control. Property owner to carry fire, tornado and any other necessary insurance. We do not
guarantee against pavement cracking from weather cycles and water ponding or retention due to pre-existing grade conditions. We
cannot guarantee drainage or against water ponding on new asphalt without adequate slope. In flat areas water will not drain unless
there is more than 1-1/2” of fall per 10 feet. “ACI” shall not be liable for damage to adjoining concrete flat work by asphalt installation
equipment during standard construction procedures. Proposal excludes the following unless otherwise stated in the proposal: Permits,
Excavation, Staking, Material Testing, Sod Restoration & Landscaping, Manhole/Catch Basin/Gate Valve Adjustments or Repairs,
Vegetation Removal, SAC/WAC Charges, Dewatering. You authorize ACI to perform a credit investigation and /or obtain credit reports
from credit reporting agencies.
Notice Of Lien: A) Any person or company supplying labor or materials for this improvement to your property
may file a lien against your property if that person or company is not paid for the contributions. B) Under
Minnesota Law, you may have the right to pay persons who supplied labor or materials for this improvement
directly and deduct this amount from our contract price, or withhold the amounts due them from us until 120 days
after completion of the improvement unless we give you a Lien Waiver signed by persons who supplied any Labor
and Material for the improvement and who gave you timely notice.
Customer Initial ______Date ___________
Professional People, Progressive Solutions
www.aciasphalt.com
Proposal # 2014-1657
Estimate
Date
7/11/2014
Estimate No.
1418
Nam e/Address
City of Monticello
Attn: Tom Pawelk
505 W alnut Street
Monticello, MN 55362
Job Location
Minnesota Asphalt Maintenance
92 Ivy Ave W
St. Paul, Mn 55117
Signature _____________________________________
Total
Description Qty Rate Total
T-Mat (3932 square yards) 2 coats at .50 gallon per
square yard.
Sweep area to be sealed with power blowers. Install
T-Mat using specified equipment at a coverage rate of
no less than .50 gallons per yard
3,932 4.00 15,728.00
T-Mat (3440 square yards) 2 coats at .50 gallon per
square yard. (USING ADHESION PROMOTER)
Sweep area to be sealed with power blowers. Install
T-Mat using specified equipment at a coverage rate of
no less than .50 gallons per yard
3,440 4.25 14,620.00
$30,348.00
City Council Agenda: 07/14/14
1
7E. Consideration of adopting Resolution #2014-070 approving the Joint Powers
Agreement for public transit services through the Wright County Area
Transportation (WCAT) Joint Powers Board (JO)
This item will be provided to Council prior to the meeting (likely sometime
on Friday, July 11th).