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2011 Monticello Annual Comprehensive Financial Report
INTRODUCTORYSECTION FINANCIALSECTION CITYOFMONTICELLO Management’sDiscussionandAnalysis YearEndedDecember31,2011 -3- AsmanagementoftheCityofMonticello,Minnesota(theCity),weofferthereadersofthesefinancial statementsthisnarrativeoverviewandanalysisoftheCity’sfinancialactivitiesforthefiscalyearended December31,2011. FINANCIALHIGHLIGHTS TheassetsoftheCityexceededitsliabilitiesatyear-endby$111,846,991(netassets).Ofthisamount, $31,659,622(unrestrictednetassets)maybeusedtomeettheCity’songoingobligationstocitizensand creditors. Asofthecloseofthecurrentfiscalyear,theCity’sgovernmentalfundsreportedcombinedendingfund balancesof$38,073,550,anincreaseof$8,415,616fromtheprioryear.Nonspendable,restricted, committed,andassignedusesoffundbalancetotaled$39,001,285,leavinganunassignedfundbalance deficitof($927,735). Attheendofthecurrentfiscalyear,unassignedfundbalancefortheGeneralFundwas$649,821,or 10.0percent,oftotalGeneralFundexpendituresfor2011.Inaddition,theCityhas$3,374,200as committedforworkingcapitalandcontingencies.TheCitytargets45percentofnextyear’sexpenditure budgetastheoptimumfundbalancelevel,providingareserveforcashflowduringthefirstsixmonthsof eachsubsequentyearuntilpropertytaxreceiptsarereleasedfromthecountytreasurer’sofficeand distributedtothelocallevelsofgovernment.The$3,374,200representsthis45percentandisreportedas designatedforworkingcapitalandcontingenciesintheGeneralFund. TheCity’stotallong-termliabilitiesincreasedby$6,126,368(9.4percent)during2011.Principal paymentsmadeonoutstandingdebttotaled$4,953,000.TheCityissued$10,735,000innewdebtin 2011torefundanexistingimprovementbond. OVERVIEWOFTHEFINANCIALSTATEMENTS ThisdiscussionandanalysisisintendedtoserveasanintroductiontotheCity’sbasicfinancial statements,whicharecomprisedofthreecomponents:1)government-widefinancialstatements,2)fund financialstatements,and3)notestobasicfinancialstatements. Thereportalsocontainsotherrequiredsupplementaryinformation,whichcanprovidedetailed informationontheCity’sfinancialactivity. Government-WideFinancialStatements –Thegovernment-widefinancialstatementsaredesignedto providereaderswithabroadoverviewoftheCity’sfinancesinamannersimilartoaprivatesector business.TheStatementofNetAssetspresentsinformationonalloftheCity’sassetsandliabilities,with thedifferencebetweenthetworeportedas netassets.Overtime,thechangesinnetassetsmayserveasa usefulindicatorofthefinancialhealthoftheCity. TheStatementofActivitiespresentsinformationshowinghowtheCity’snetassetschangedduringthe year.Allchangesinnetassetsarereportedassoonastheunderlyingeventaffectingthechangeoccurs, regardlessofthetimingofrelatedcashflows.Therefore,revenuesandexpensesarereportedinthis statementforsomeitemsthatwillresultincashflowsinfuturefiscalperiods,suchasuncollectedtaxes andearnedbutunusedvacationleave. -4- Bothofthegovernment-widefinancialstatementsdistinguishfunctionsoftheCitythatareprincipally supportedbytaxesandintergovernmentalrevenue(governmentalactivities)fromotherfunctionsthatare intendedtorecoverallorasignificantportionoftheircoststhroughuserfeesandcharges(business-type activities).ThegovernmentalactivitiesprovidedbytheCityincludegeneralgovernment,publicsafety, publicworks,sanitation,cultureandrecreation,andeconomicdevelopment.Business-typeactivities includewater,sewer,liquor,cemetery,andfiberopticsactivities. Thegovernment-widefinancialstatementsincludenotonlytheCityitself(knownastheprimary government),butalsotheEconomicDevelopmentAuthority(EDA).TheEDAisalegallyseparateentity whichfunctions,inessence,asadepartmentoftheCity,toprovideredevelopmentassistancethroughthe administrationofvariousprograms.Therefore,theEDAhasbeenincludedasanintegralpartofthe City’sfinancialstatements. FundFinancialStatements –Afundisagroupingofrelatedaccountsusedtomaintaincontrolover resourcesthathavebeensegregatedforspecificactivitiesorobjectives.TheCity,likeotherunitsof government,usesfundaccountingtoensureanddemonstratecompliancewithfinance-relatedlegal requirements.AlloftheCity’sfundscanbedividedintotwocategories:governmentalfundsand proprietaryfunds. GovernmentalFunds –Governmentalfundsareusedtoaccountforessentiallythesamefunctions reportedasgovernmentalactivitiesinthegovernment-widefinancialstatements.However,unlikethe government-widefinancialstatements,governmentalfundfinancialstatementsfocusonnear-termreceipt anduseofspendableresources,aswellasonthebalanceofspendableresourcesavailableattheendof thefiscalyear.Thisinformationmaybeusefulinevaluatingagovernment’snear-termfinancing requirements. Becausethefocusofgovernmentalfundsisnarrowerthanthatofthegovernment-widefinancial statements,itisusefultocomparetheinformationpresentedforgovernmentalfundswithsimilar informationpresentedforgovernmentalactivitiesinthegovernment-widestatements.Bydoingso, readersmaybetterunderstandthelong-termimpactoftheCity’snear-termfinancingdecisions.Boththe governmentalfundsBalanceSheetandthegovernmentalfundsStatementofRevenue,Expenditures,and ChangesinFundBalancesprovideareconciliationtofacilitatethiscomparison. TheCitymaintainsseveralindividualgovernmentalfunds.Informationispresentedseparatelyinthe governmentalfundsBalanceSheetandinthegovernmentalfundsStatementofRevenue,Expenditures, andChangesinFundBalancesfortheGeneralFund,CommunityCenterSpecialRevenueFund,EDA SpecialRevenueFund,DebtServiceFund,CapitalOutlayRevolvingCapitalProjectFund,Sanitary SewerAccessCapitalProjectFund,andCapitalProjectsFund,allofwhichareconsideredtobemajor funds.Datafromtheremaininggovernmentalfundsarecombinedintoasingle,aggregatedpresentation. Individualfunddataforeachofthesenonmajorgovernmentalfundsisprovidedintheformofcombining statementselsewhereinthisreport. TheCityadoptsanannualbudgetforitsGeneralFundandmajorspecialrevenuefunds.Abudgetary comparisonschedulehasbeenprovidedfortheGeneralFundandmajorspecialrevenuefundsto demonstratecompliancewiththeadoptedbudgets. ProprietaryFunds –TheCitymaintainsfiveenterprisefundswhichareconsideredproprietaryfunds. Enterprisefundsareusedtoreportthesamefunctionspresentedasbusiness-typeactivitiesinthe government-widefinancialstatements.TheCityusesenterprisefundstoaccountforitswaterandsewer serviceoperations,liquorsalesoperation,cemeterymaintenance,andfiberopticsoperation. Proprietaryfundsprovidethesametypeofinformationasthegovernment-widefinancialstatements,only inmoredetail.Theproprietaryfundfinancialstatementsprovideseparateinformationforeachofthe enterpriseoperations. -5- NotestoBasicFinancialStatements –Thenotestobasicfinancialstatementsprovideadditional informationthatisessentialtoobtainingafullunderstandingofthedataprovidedinthegovernment-wide andfundfinancialstatements. OtherInformation –Additionalinformationonnonmajorfundscanbefoundinthecombining nonmajorfundstatementssectionofthisreport. GOVERNMENT-WIDEFINANCIALANALYSIS Asnotedearlier,netassetsmayserveovertimeasausefulindicatorofagovernment’sfinancialposition. TheCity’sassetsexceededitsliabilitiesby$111,846,991attheendof2011. AportionoftheCity’snetassets(56.6percent)reflectsitsinvestmentincapitalassets(e.g.land, buildings,machineryandequipment,andinfrastructure)lessanyrelatedoutstandingdebtusedtoacquire thoseassets.TheCityusesthesecapitalassetstoprovideservicestocitizens;consequently,theseassets arenotavailableforfuturespending.AlthoughtheCity’sinvestmentinitscapitalassetsisreportednet ofrelateddebt,itshouldbenotedthattheresourcesneededtorepaythisdebtmustbeprovidedfrom otherresources,sincethecapitalassetsthemselvescannotbeusedtoliquidatetheseliabilities. AportionoftheCity’snetassets(28.3percent)reflectsitsunrestrictednetassetswhichmaybeusedto meettheCity’songoingobligationstocitizensandcreditors. CityofMonticello’sNetAssets 201120102011201020112010 Currentandotherassets55,638,978$48,467,136$12,031,983$16,141,875$67,670,961$64,609,011$ Capitalassets71,241,71769,750,14347,232,25747,415,729118,473,974117,165,872 Totalassets126,880,695118,217,27959,264,24063,557,604186,144,935181,774,883 Long-termliabilities44,714,16538,527,25926,746,46626,807,00471,460,63165,334,263 Otherliabilities2,271,2852,574,057566,0281,811,7472,837,3134,385,804 Totalliabilities46,985,45041,101,31627,312,49428,618,75174,297,94469,720,067 Netassets Investedincapitalassets, netofrelateddebt38,242,04031,901,67625,031,04328,556,35563,273,08360,458,031 Restricted16,894,93618,337,86619,35019,35016,914,28618,357,216 Unrestricted24,758,26926,876,4216,901,3536,363,14831,659,62233,239,569 Totalnetassets79,895,245$77,115,963$31,951,746$34,938,853$111,846,991$112,054,816$ GovernmentalActivitiesBusiness-TypeActivitiesTotal Attheendof2011,theCitywasabletoreportpositivebalancesinallthreecategoriesofnetassets,bothfor thegovernmentasawholeandforitsseparategovernmentalandbusiness-typeactivities. -6- GovernmentalActivities –Totalnetassetsandnetassetsinvestedincapitalassets,netofrelateddebtin theCity’sgovernmentalactivitiesincreasedfromthepreviousyearastheresultofincreasedinterest earnings,transfersintothegovernmentalactivitiesfromthebusiness-typeactivitiesforcapitalneeds,and improvementstotheCity’sinfrastructure,includingthe2011StreetReconstructionProjectandHighway 75roadandtrailimprovements,ofwhichthestateandcountycontributedaportionofthecostthroughits StateStreetAidprogramsandcountyconstructionfunds. Business-TypeActivities –Theshiftsinnetassetsinvestedincapitalassets,netofrelateddebtand unrestrictednetassetsintheCity’sbusiness-typeactivitiesduring2011aremainlybecauseofthe ongoingconstructionandoperationsintheCity’sFiberOpticsFund.In2011,theprojectincludedthe installationofthefiberopticssystemwithintheCityandinstallationtocustomersaswellascontinuing operations. CityofMonticello’sChangesinNetAssets 201120102011201020112011 Revenues Programrevenues Chargesforservices2,502,380$3,453,575$5,574,010$3,939,379$8,076,390$7,392,954$ Operatinggrantsandcontributions253,127424,845 ––253,127424,845 Capitalgrantsandcontributions2,083,5114,124,271 ––2,083,5114,124,271 Generalrevenues Propertytaxes8,451,1498,260,705 ––8,451,1498,260,705 Franchisetaxes341,362371,258 ––341,362371,258 Generalgrantsandaids19,35937,665 ––19,35937,665 Investmentearnings1,467,780859,583495,484236,1311,963,2641,095,714 Other354,501442,0911,555,509125,3261,910,010567,417 Totalrevenues15,473,16917,973,9937,625,0034,300,83623,098,17222,274,829 Expenses Generalgovernment 2,111,7102,065,463 ––2,111,7102,065,463 Publicsafety 1,788,5951,766,712 ––1,788,5951,766,712 Publicworks4,838,5443,579,291 ––4,838,5443,579,291 Sanitation495,693534,903 ––495,693534,903 Cultureandrecreation1,724,3482,609,429 ––1,724,3482,609,429 Economicdevelopment 1,199,9362,647,687 ––1,199,9362,647,687 Interestandfiscalcharges1,248,7161,464,012 ––1,248,7161,464,012 Water ––1,167,572936,7181,167,572936,718 Sewer ––2,340,5552,495,9762,340,5552,495,976 Liquor ––658,999637,574658,999637,574 Cemetery ––28,84926,65928,84926,659 Fiberoptics ––5,702,4803,815,3775,702,4803,815,377 Totalexpenses13,407,54214,667,4979,898,4557,912,30423,305,99722,579,801 Increaseinnetassets beforetransfers2,065,6273,306,496(2,273,452)(3,611,468)(207,825)(304,972) Transfers713,655(5,774,257)(713,655)5,774,257 –– Changeinnetassets2,779,282(2,467,761)(2,987,107)2,162,789(207,825)(304,972) Netassets–beginningofyear77,115,96379,583,72434,938,85332,776,064112,054,816112,359,788 Netassets–endofyear79,895,245$77,115,963$31,951,746$34,938,853$111,846,991$112,054,816$ TotalGovernmentalActivitiesBusiness-TypeActivities TheCity’snetassetsdecreasedinfiscal2011by$207,825.Thisdecreasewastheresultofcontinued startupofoperationsoftheCity’sFiberOpticsProjectin2011. Chargesforservicesincreasedin2011becausethenumberofcustomersreceivingservicesfromthenew fiberopticssystemincreasedandbillingreflectsafullyearofbillingscomparedtoonlyeightmonthsin 2010.Overall,netassetsdecreasedinthebusiness-typeactivitiesduetointerestondebttotaling $1,818,869intheFiberOpticsFundinfiscal2011. -7- GOVERNMENTAL ACTIVITIES –REVENUES RevenuesbySource–GovernmentalActivities GeneralGrantsand Aids <1% ChargesforServices 16%InvestmentEarnings 9% OperatingGrantsand Contributions 2% Other 2% CapitalGrantsand Contributions 13% FranchiseTaxes 2% PropertyTaxes 55% RevenuesfortheCity’sgovernmentalactivitiesdecreasedby$2,500,824,or13.9percent.Themajor componentsofthisdecreaseareexplainedasfollows: Capitalgrantsandcontributionsdecreasedby$2,040,760,or49.5percent.Thisdecreasewasdue totheCityspecialassessingpropertyownerslessfortheirshareofthe2011StreetReconstruction Projectandotherimprovementprojectsduetosizeandtypeofprojectcomparedto2010projects. Chargesforservicesdecreasedby$951,195,or27.5percent.Thisdecreasewasprimarilydueto fewerdevelopmentfeespaidandfewerchargestotheCityforitsservicesonconstructionprojects. Investmentearningsincreasedby$608,197,or70.8percent,duetostableinterestrateson long-terminvestmentsandanincreaseinavailablecashtoinvestfromtheprioryear. Expenses –Cityexpensesforgovernmentalactivitiesdecreasedby$1,259,955,or8.6percent.This decreaseisprimarilyduetoadecreaseincultureandrecreationandeconomicdevelopmentactivityinfiscal 2011. -8- BUSINESS-TYPE ACTIVITIES RevenuesbySource–Business-TypeActivities Chargesfor Services 73% Other 20% Investment Earnings 7% Business-typeactivitiesdecreasedtheCity’snetassetsby($2,987,107).TheratesforeachoftheCity’s utilityservicesoperatedasenterprisefundsarereviewedannuallyandadjustedbytheCityCounciltoassure operatingrevenuesareindependentlysufficienttocovertheirownoperatingexpensesandprovidefortheir owncapitalequipmentreplacementneeds.Capitalgrantsandcontributionsmaybenecessaryforthefuture replacementoffacilityneedsasthecurrentandprojectedfuturerateswillnotbesufficientfortheirultimate replacement. TheCity’sbusiness-typechargesforservicesincreasedby$1,634,631,or41.5percent,primarilyduetothe newchargesfortheCity’snewfiberopticssystem,whichbeganoperationsin2010. Investmentearningsincreasedduetoimprovedinterestratesandincreasedfundsinvested. Business-typeactivitiesothergeneralrevenuesincreased$1,430,183,mainlyduetoalegalsettlementin fiscal2011. Business-typeexpensesincreasedfromthepreviousyearby$1,986,151duetoincreasedcostsrelatedtothe FiberOpticsFundof$1,887,103. FINANCIALANALYSISOFTHEGOVERNMENT’SFUNDS Asnotedearlier,theCityusesfundaccountingtoensureanddemonstratecompliancewithfinance-related legalrequirements. GovernmentalFunds –ThefocusoftheCity’sgovernmentalfundsistoprovideinformationonnear-term receipts,uses,andbalancesofspendableresources.SuchinformationisusefulinassessingtheCity’s financingrequirements.Inparticular,unassignedfundbalancemayserveasausefulmeasureofa government’snetresourcesavailableforspendingattheendofthefiscalyear. Asoftheendofthecurrentfiscalyear,theCity’sgovernmentalfundsreportedcombinedendingfund balancesof$38,073,550,anincreaseof$8,415,616fromtheprioryear.Ofthistotalamount,adeficitof ($927,735)constitutesunassignedfundbalance.Theremainderofthefundbalanceisnonspendable, restricted,committed,orassignedforavarietyofpurposes. -9- TheCity’sGeneralFunddecreased$656,430duringthecurrentfiscalyear.Decreasedchargesfor servicesprovidedthedecreaseinrevenues,whilepropertytaxesandinvestmentearningsincreasedfor 2011.Thedecreaseswereduetolessconstructionactivitytakingplacein2011.TheCityalso transferredouttootherfunds$728,383fromtheGeneralFundin2011,whichwasadecreaseof $475,617.EachofthemainactivitiesoftheGeneralFundwerecompletedefficientlyandeffectivelyas authorizedwithintheadoptedbudget,withoutfullyusingreservebalances.TotalGeneralFund expenditureswereoverbudgetby$60,710fortheyear. CommunityCenterSpecialRevenueFund –ThedecreaseintheCommunityCenterSpecialRevenue Fundbalancewastheresultofadecreaseintransfersinandatransferoutin2011fortheCommunity CenterSpecialRevenueFund’sshareofdebtservicepayments. EDASpecialRevenueFund –TheEDASpecialRevenueFundin2011soldaparceloflandintheOtter CreekBusinessParktoacitybusinessfortheirexpansionandcreatedanewtaxincrementdistricttohelp financetheexpansion.Inaddition,theEDApurchasedsomelandadjacenttotheOtterCreekBusiness Parkforresaleinthefuture.Thebusinessparklandisavailableforsaleatadiscountasaneconomic developmentincentiveforindustrialfacilities.Inaddition,theEDApaidoffoneofitspay-as-you-go obligationstodevelopersanddecertifiedataxincrementdistrictin2011.Forthesereasons,both revenuesandexpendituresarehigherin2011comparedto2010. DebtServiceFund –Themainrevenuesourceisthecollectionofspecialassessments,withtheannual principalandinterestondebtasthemainexpenditurein2011.Reservesincreasedby$10,602,565dueto thenewdebtissuedin2011torefundthe2005specialassessmentbondissue. CapitalOutlayRevolvingCapitalProjectsFund –TheincreaseinfundbalanceisduetotheCity receivingandassigningcablefranchisefeesforcommunicationimprovementsfromtheWrightSherburne CableCommission. SanitarySewerAccessCapitalProjectsFund –TheSanitarySewerAccessCapitalProjectsFund balancedecreasedby$945,627duetothetransferoffundsfortheSanitarySewerAccessCapitalProjects Fund’sshareofdebtservicepayments. CapitalProjectsFund –TheCapitalProjectsFund’sresourcesincreasedinthecurrentyearprimarily duetothedecreaseincapitalprojectscompletedthroughouttheyear. ProprietaryFunds –TheCity’sproprietaryfundsprovidethesametypeofinformationfoundinthe government-widefinancialstatements,butinmoredetail. WaterFund –Netassetsincreased$21,770fortheWaterFund;however,theWaterFundhadan operatinglossof$77,718in2011.Thedepreciablecostsofassetsarenotfullyoffsetbythewaterrates. SewerFund –SimilartotheWaterFund,thedepreciablecostofassetsarenotfullyoffsetbythesewer ratesand,therefore,theSewerFundhadanoperatinglossinfiscal2011.Thesewerrateswereincreased 9.0percentin2011,resultinginanincreaseinrevenues. LiquorFund –TheCity’sliquoroperationsendedtheyearwithanincreaseinnetassetsfrom operations.TheCity’sLiquorFundhadoperatingnetincomeof$492,264andtransferred$250,000to otherfundstoreducepropertytaxes. -10- CemeteryFund –NetassetsoftheCemeteryFunddecreased$4,637in2011.TheCemeteryFundsets itschargesandfeesataleveltobreakevenortoincreaseslightly. FiberOpticsFund –In2007,theCitystarteditsFiberOpticsProject,whichinstalledafiberoptics systemtoeverypremiseintheCitytoprovidecustomerswithphone,high-speedInternet,andcable televisionservicesasaself-supportingsystemwithcompetitivepricingwhichwillactasaneconomic developmenttoolfortheCity.Thesystembeganoperationsinthespringof2010assystemconstruction continued.AsofDecember31,2011,thesystemwas100percentoperationalwithbondspayableof $26,445,000. GENERALFUNDBUDGETARYHIGHLIGHTS GeneralFundrevenuesfor2011wereoverbudgetby$133,391intotal.Licensesandpermitscollected were$46,251belowbudgetduetotheslowhousingmarketandthepooreconomyrelatedtonew development.Inaddition,investmentearningswere$99,476overbudgetduetobetterthanexpected interestrates. GeneralFundexpendituresfor2011wereonly$60,710morethanbudgeted. CAPITALASSETSANDDEBTADMINISTRATION CapitalAssets –TheCity’sinvestmentincapitalassetsforitsgovernmentalandbusiness-typeactivities amountsto$118,473,964asofDecember31,2011,netofaccumulateddepreciation.Thisinvestmentin capitalassetsincludesfireandpublicworksequipment,parksandrecreationfacilities,buildings,roads, sewer,water,andstormsewerutilities.Thisamountrepresentsanetincrease(includingadditionsand deductions)of$1,308,092overlastyear. CityofMonticello’sCapitalAssets 201120102011201020112010 Land10,744,862$9,007,112$1,751,945$1,751,945$12,496,807$10,759,057$ Constructioninprogress6,122,1638,750,67214,43912,235,4556,136,60220,986,127 Buildings13,709,65313,709,6536,820,9796,820,97920,530,63220,530,632 Improvementsother thanbuildings5,173,3925,173,39220,182,71920,182,71825,356,11125,356,110 Machinery,equipment, furniture,andvehicles4,500,6514,440,8562,206,7872,191,9026,707,4386,632,758 Infrastructure64,638,74958,608,52348,192,66534,417,075112,831,41493,025,598 Lessaccumulated depreciation(33,647,753)(29,940,065)(31,937,277)(30,184,345)(65,585,030)(60,124,410) Nettotal71,241,717$69,750,143$47,232,257$47,415,729$118,473,974$117,165,872$ GovernmentalActivitiesBusiness-TypeActivitiesTotal AdditionalinformationontheCity’scapitalassetsislocatedinNote3ofthenotestobasicfinancial statements. -11- Long-TermDebt –Attheendof2011,theCityhastotalbondsoutstandingintheamountof $70,746,000,ofwhich$29,490,000isspecialassessmentbondsoutstanding.TheCityhaspledged revenuestreamsfromgeneralpropertytaxes;thecommunitycenter;waterandsewerutilities;fiberoptics revenues;andsewer,water,andstormseweraccessfundsfortheprincipalandinterestpaymentsdueon thesebonds. CityofMonticello’sOutstandingBonds 201120102011201020112010 Generalobligationbonds10,196,903$11,531,903$654,097$747,097$10,851,000$12,279,000$ Specialassessmentbonds29,490,00021,320,000 ––29,490,00021,320,000 Revenuebonds3,960,0004,920,00026,445,00026,445,00030,405,00031,365,000 Total43,646,903$37,771,903$27,099,097$27,192,097$70,746,000$64,964,000$ Total Governmental Activities Business-Type Activities TheCity’stotaloutstandingbondsincreasedby$5,782,000,orapproximately8.9percent,during2011. Statestatuteslimittheamountofgeneralobligationbondsagovernmententitymayissueto3percentof itstaxablemarketvalue.Thecurrentdebtlimitis$33,196,242,whichissignificantlyinexcessofthe City’soutstandingnetgeneralobligationbondsof$4,365,000,whichissubjecttothelimitation. AdditionalinformationontheCity’sdebtislocatedinNote4ofthenotestobasicfinancialstatements. ECONOMICFACTORSANDNEXTYEAR’SBUDGET TheCityconsideredmanyfactorswhensettingthefiscalyear2012budget,rates,andfeesthatwillbe chargedinthebusiness-typeactivities.TheCityCouncildecidedtosetthetaxlevyatalevelthatwould asmuchaspossiblemaintainservicesatpreviouslevels,thusresultinginataxlevyincreaseof$172,691. Theonlyservicereductionwasthedelayofsomecapitalpurchasesandimprovements.Budgeted revenuesforpermitsandchargesforserviceswerereducedtoreflectlessnewdevelopmentactivity takingplacein2011.Budgetedsewerandwateruserfeeswereincreasedby12percentand8percent, respectively,tobeusedtofundoperationalcostsfortheirdepartments.Finally,theCitywillnotuse reservefundsfromtheDebtServiceFundandfromenterprisefundstobalancethebudget.TheCity’s propertytaxlevyfor2012willamountto$7,850,000,whichis$172,691morethan2011. REQUESTSFORINFORMATION TheCity’sfinancialstatementsaredesignedtoprovideourcitizens,customers,andcreditorswitha generaloverviewoftheCity’sfinancesandtoshowtheCity’saccountabilityforthemoneyitreceives.If youhavequestionsaboutthisreportorneedadditionalfinancialinformation,contacttheCityof Monticello,FinanceDepartmentat505WalnutStreet,SuiteNo.1,Monticello,Minnesota55362. Economic CommunityDevelopmentCapitalOutlaySanitary GeneralCenterAuthorityDebtServiceRevolvingSewerAccessCapitalProjectsNonmajorFundsTotals Assets Cashandinvestments2,870,507$995,379$4,618,163$2,027,065$1,050,786$3,117,496$1,170,592$7,537,502$23,387,490$ Cashandinvestmentsheldinescrow–––10,963,134––––10,963,134 Receivables Currenttaxes38,4277,9384,5307,845–––34859,088 Delinquenttaxes359,26579,35579,56967,261–––7,821593,271 Currentspecialassessments729––1,254,774––––1,255,503 Deferredspecialassessments–––10,891,662––––10,891,662 Delinquentspecialassessments4,578––1,424,191––––1,428,769 Accounts106,5904732,300239,500–––102,112450,975 Accruedinterest28,9453,38023,7059,4796,37318,252(10,870)49,446128,710 Duefromotherfunds2,328,284––473,172––––2,801,456 Duefromothergovernmentalunits179–––––––179 Notesreceivable200,723–532,0281,000,000–––305,1202,037,871 Landheldforresale––2,401,056–1,274,088–––3,675,144 Prepaiditems185,89318,9731,500–2,829––1,667210,862 Totalassets6,124,120$1,105,498$7,662,851$28,358,083$2,334,076$3,135,748$1,159,722$8,004,016$57,884,114$ LiabilitiesandFundBalances Liabilities Accountsandcontractspayable254,388$36,309$94,631$–$4,551$–$216,581$2,841$609,301$ Otheraccruedliabilities245,766–––––––245,766 Duetootherfunds––––––2,303,807175,1222,478,929 Duetoothergovernmentalunits6,7505,620–––––51,82964,199 Deferredrevenue364,57385,56179,56914,717,719–––312,94115,560,363 Escrowdeposits842,006–10,000–––––852,006 Totalliabilities1,713,483127,490184,20014,717,7194,551–2,520,388542,73319,810,564 Fundbalances(deficit) Nonspendable386,61618,9731,500–1,276,917––1,6671,685,673 Restricted––7,477,15113,640,364–––1,023,14722,140,662 Committed3,374,200959,035––48,517–75,0001,579,5726,036,324 Assigned––––1,004,0913,135,748–4,998,7879,138,626 Unassigned,reportedin GeneralFund649,821–––––––649,821 Specialrevenuefunds–––––––(141,890)(141,890) Capitalprojectsfunds––––––(1,435,666)–(1,435,666) Totalfundbalances4,410,637978,0087,478,65113,640,3642,329,5253,135,748(1,360,666)7,461,28338,073,550 Totalliabilitiesandfundbalances 6,124,120$1,105,498$7,662,851$28,358,083$2,334,076$3,135,748$1,159,722$8,004,016$57,884,114$ Seenotestobasicfinancialstatements asofDecember31,2011 SpecialRevenueFundsCapitalProjectsFunds CITYOFMONTICELLO BalanceSheet GovernmentalFunds 14and15 Economic CommunityDevelopmentCapitalOutlaySanitary GeneralCenterAuthorityDebtServiceRevolvingSewerAccessCapitalProjectsNonmajorFundsTotals Revenue Propertytaxes5,142,752$1,044,052$–$1,082,998$–$–$–$24,833$7,294,635$ Taxincrements––1,044,791–––––1,044,791 Specialassessments3,550––1,852,584––––1,856,134 Franchisetaxes75,000–––38,145––228,217341,362 Licensesandpermits249,999–––––––249,999 Intergovernmental268,936–––––626,997538,4871,434,420 Chargesforservices399,5481,207,023–––188,267–444,7462,239,584 Fines85–––––––85 Investmentearnings(charges)308,21936,397306,53196,03880,486175,506(111,853)576,4561,467,780 Miscellaneous152,17821,778123,790207,59717,59484476,7182,520603,019 Totalrevenue6,600,2672,309,2501,475,1123,239,217136,225364,617591,8621,815,25916,531,809 Expenditures Current Generalgovernment1,669,493––104,147–––265,6302,039,270 Publicsafety1,728,409–––––––1,728,409 Publicworks1,656,619––––1,041–17,5621,675,222 Sanitation495,693–––––––495,693 Cultureandrecreation829,0971,580,575–––––9,6972,419,369 Economicdevelopment149,003–1,021,997–27,449–––1,198,449 Capitaloutlay Publicworks––––––2,761,947–2,761,947 Cultureandrecreation–91,517––––––91,517 Economicdevelopment––––76,037––1,137,7501,213,787 Debtservice Principal–––4,860,000––––4,860,000 Interestandfiscalcharges–––1,376,595–––6,5001,383,095 Totalexpenditures6,528,3141,672,0921,021,9976,340,742103,4861,0412,761,9471,437,13919,866,758 Excess(deficiency)ofrevenues overexpenditures71,953637,158453,115(3,101,525)32,739363,576(2,170,085)378,120(3,334,949) Otherfinancingsources(uses) Transfersin–––3,119,180––2,341,639250,0005,710,819 Transfers(out)(728,383)(815,000)(316,279)(452,000)–(1,309,203)–(1,376,299)(4,997,164) Refundingbondsissued–––10,735,000––––10,735,000 Premiumondebtissued–––301,910––––301,910 Totalotherfinancingsources(uses)(728,383)(815,000)(316,279)13,704,090–(1,309,203)2,341,639(1,126,299)11,750,565 Netchangeinfundbalances(656,430)(177,842)136,83610,602,56532,739(945,627)171,554(748,179)8,415,616 Fundbalances(deficit) Beginningofyear5,067,0671,155,8507,341,8153,037,7992,296,7864,081,375(1,532,220)8,209,46229,657,934 Endofyear4,410,637$978,008$7,478,651$13,640,364$2,329,525$3,135,748$(1,360,666)$7,461,283$38,073,550$ Seenotestobasicfinancialstatements CITYOFMONTICELLO StatementofRevenue,Expenditures,andChangesinFundBalances YearEndedDecember31,2011 GovernmentalFunds SpecialRevenueFundsCapitalProjectsFunds 17and18 ParkStreet MinnesotaPathwayDeputyGrantCDBG–BertramStormSewerCityStreetLighting InvestmentDedicationRegistrarFundingRevitalizationChainofLakesWaterAccessAccessReconstructionImprovementTotals Assets Cashandinvestments1,016,467$29,406$274,529$153$520$1,484$227,832$1,793,608$3,310,350$883,153$7,537,502$ Receivables Currenttaxes––––––––348–348 Delinquenttaxes––––––––7,821–7,821 Accounts––25,931––––––76,181102,112 Accruedinterest6,0032,5371,58113(1)1,41911,45620,1626,28549,446 Notesreceivable––––305,120–––––305,120 Prepaiditems––1,573––94––––1,667 Totalassets1,022,470$31,943$303,614$154$305,643$1,577$229,251$1,805,064$3,338,681$965,619$8,004,016$ LiabilitiesandFundBalances Liabilities Accountsandcontractspayable–$–$1,161$–$–$–$–$1,680$–$–$2,841$ Duetootherfunds–173,833–––1,289––––175,122 Duetoothergovernmentalunits––51,829–––––––51,829 Deferredrevenue––––305,120–––7,821–312,941 Totalliabilities–173,83352,990–305,1201,289–1,6807,821–542,733 Fundbalances(deficit) Specialrevenuefunds Nonspendableforprepaiditems––1,573––94––––1,667 Restrictedforeconomicdevelopment1,022,470–––523–––––1,022,993 Restrictedforgrants–––154––––––154 Committedfordeputyregistraroperations––249,051–––––––249,051 Committedforstreetreconstruction––––––––1,330,521–1,330,521 Assignedforparkimprovements–––––194––––194 Unassigned–(141,890)––––––––(141,890) Capitalprojectsfunds Assignedforcapitalimprovements––––––229,2511,803,3842,000,339965,6194,998,593 Totalfundbalances1,022,470(141,890)250,624154523288229,2511,803,3843,330,860965,6197,461,283 Totalliabilitiesandfundbalances1,022,470$31,943$303,614$154$305,643$1,577$229,251$1,805,064$3,338,681$965,619$8,004,016$ CITYOFMONTICELLO NonmajorGovernmentalFunds CombiningBalanceSheet asofDecember31,2011 SpecialRevenueFundsCapitalProjectsFunds 59and60 ParkStreet MinnesotaPathwayDeputyGrantCDBG–BertramStormSewerCityStreetLighting InvestmentDedicationRegistrarFundingRevitalizationChainofLakesWaterAccessAccessReconstructionImprovementTotals Revenue Propertytaxes–$–$–$–$–$–$–$–$24,833$–$24,833$ Franchisetaxes–––––––––228,217228,217 Intergovernmental–538,487––––––––538,487 Chargesforservices––365,286–––26,57652,884––444,746 Other Investmentearnings(charges)69,56325,31620,223(149)(110)(17)6,629126,442247,77480,785576,456 Miscellaneous–––––2,520––––2,520 Totalrevenue69,563563,803385,509(149)(110)2,50333,205179,326272,607309,0021,815,259 Expenditures Current Generalgovernment––265,630–––––––265,630 Publicworks––––––1,02216,540––17,562 Cultureandrecreation–7,630–––2,067––––9,697 Capitaloutlay Cultureandrecreation–1,137,750––––––––1,137,750 Debtservice Interestandfiscalcharges–6,500––––––––6,500 Totalexpenditures–1,151,880265,630––2,0671,02216,540––1,437,139 Excess(deficiency)ofrevenue overexpenditures69,563(588,077)119,879(149)(110)43632,183162,786272,607309,002378,120 Otherfinancingsources(uses) Transfersin––––––––250,000–250,000 Transfers(out)––(97,500)–––(340,303)(472,861)(192,575)(273,060)(1,376,299) Totalotherfinancingsources(uses)––(97,500)–––(340,303)(472,861)57,425(273,060)(1,126,299) Changeinfundbalances69,563(588,077)22,379(149)(110)436(308,120)(310,075)330,03235,942(748,179) Fundbalances(deficit) Beginningofyear952,907446,187228,245303633(148)537,3712,113,4593,000,828929,6778,209,462 Endofyear 1,022,470$(141,890)$250,624$154$523$288$229,251$1,803,384$3,330,860$965,619$7,461,283$ NonmajorGovernmentalFunds CombiningStatementofRevenue,Expenditures,andChangesinFundBalances YearEndedDecember31,2011 CapitalProjectsFundsSpecialRevenueFunds CITYOFMONTICELLO 61and62 STATISTICALSECTION (UNAUDITED) 20042005200620072008200920102011 Governmentalactivities Investedincapitalassets,netofrelateddebt8,972,497$7,009,622$7,009,622$12,476,536$27,584,763$33,712,370$31,901,676$38,242,040$ Restricted–––31,517,79222,074,42717,688,19318,337,86616,894,936 Unrestricted36,413,28645,136,46056,949,74924,543,50128,445,23028,183,16126,876,42124,758,269 Totalgovernmentalactivitiesnetassets 45,385,783$52,146,082$63,959,371$68,537,829$78,104,420$79,583,724$77,115,963$79,895,245$ Business-typeactivities Investedincapitalassets,netofrelateddebt 32,355,086$35,077,391$35,749,380$33,971,151$31,375,890$29,910,696$28,556,355$25,031,043$ Restricted––––19,35019,35019,35019,350 Unrestricted4,256,8464,740,4915,437,8676,441,4704,529,8302,846,0186,363,1486,901,353 Totalbusiness-typeactivitiesnetassets 36,611,932$39,817,882$41,187,247$40,412,621$35,925,070$32,776,064$34,938,853$31,951,746$ Primarygovernment Investedincapitalassets,netofrelateddebt 41,327,583$42,087,013$42,759,002$46,447,687$58,960,653$63,623,066$60,458,031$63,273,083$ Restricted–––31,517,79222,093,77717,707,54318,357,21616,914,286 Unrestricted40,670,13249,876,95162,387,61630,984,97132,975,06031,029,17933,239,56931,659,622 Totalprimarygovernmentnetassets 81,997,715$91,963,964$105,146,618$108,950,450$114,029,490$112,359,788$112,054,816$111,846,991$ Note:TheCityimplementedGASBStatementNo.34infiscal2004.Thisinformationisnotavailableforpreviousyears. (AccrualBasisofAccounting) FiscalYear CITYOFMONTICELLO NetAssetsbyComponent LastEightFiscalYears 64and65 20042005200620072008200920102011 Expenses Governmentalactivities Generalgovernment1,528,281$1,907,352$3,639,497$1,844,320$1,572,389$1,780,972$2,065,463$2,111,710$ Publicsafety1,649,0901,551,0982,856,5731,693,1161,792,3512,849,2721,766,7121,788,595 Publicworks438,4135,990,7195,318,8654,559,4604,634,1673,827,5013,579,2914,838,544 Sanitation2,798,883492,446474,045509,208514,208547,160534,903495,693 Cultureandrecreation410,7682,210,7292,694,9702,661,9152,700,6832,828,1522,609,4291,724,348 Economicdevelopment969,229657,2582,061,331769,584510,126842,8192,647,6871,199,936 Interestandfiscalcharges1,414,7371,733,9332,378,8712,193,8402,136,8721,673,4311,464,0121,248,716 Totalgovernmentalactivitiesexpenses9,209,40114,543,53519,424,15214,231,44313,860,79614,349,30714,667,49713,407,542 Business-typeactivities Water865,379939,449913,638973,375975,8461,018,098936,7181,167,572 Sewer2,083,8412,017,9932,095,1242,000,6102,085,4852,074,4472,495,9762,340,555 Liquor3,083,0623,172,7413,285,082644,857620,743669,940637,574658,999 Cemetery32,27533,71771,04441,31229,26727,53026,65928,849 Fiberoptics–––84,5941,590,2372,792,8133,815,3775,702,480 Totalbusiness-typeactivitiesexpenses6,064,5576,163,9006,364,8883,744,7485,301,5786,582,8287,912,3049,898,455 Totalprimarygovernmentexpenses 15,273,958$20,707,435$25,789,040$17,976,191$19,162,374$20,932,135$22,579,801$23,305,997$ . Programrevenues Governmentactivities Chargesforservices Generalgovernment629,942$683,599$974,186$695,117$523,228$443,976$491,304$521,182$ Publicsafety889,041912,3001,030,84293,13899,812155,03696,293202,237 Publicworks2,085,4782,692,3361,186,6701,994,0671,544,140744,2411,556,098508,077 Sanitation98,602863,857129,057––167,119165,38752,304 Cultureandrecreation756,359126,4181,019,2861,015,8691,060,1471,119,2041,144,4931,218,580 Economicdevelopment–146,715115,6166,76815,875155,769–– Operatinggrantsandcontributions337,688381,420281,531160,147159,192269,492424,845253,127 Capitalgrantsandcontributions4,059,0342,135,68712,153,1853,616,870948,3402,067,5094,124,2712,083,511 Totalgovernmentalactivitiesprogramrevenues8,856,1447,942,33216,890,3737,581,9764,350,7345,122,3468,002,6914,839,018 Business-typeactivities Chargesforservices Water585,699701,346742,146867,873973,7761,019,390828,6351,078,133 Sewer918,309969,9961,043,2081,196,9831,307,0641,371,7761,470,5371,712,058 Liquor3,412,8093,540,5723,619,2361,002,9331,059,4791,043,2561,174,7671,151,171 Cemetery32,14132,83429,26528,83024,47519,9958,62022,390 Fiberoptics––––––456,8201,610,258 Capitalgrantsandcontributions1,303,5274,310,6912,188,675482,412106,787––– Totalbusiness-typeactivitiesprogramrevenues6,252,4859,555,4397,622,5303,579,0313,471,5813,454,4173,939,3795,574,010 Totalprimarygovernmentprogramrevenues 15,108,629$17,497,771$24,512,903$11,161,007$7,822,315$8,576,763$11,942,070$10,413,028$ (continued) FiscalYear CITYOFMONTICELLO ChangesinNetAssets LastEightFiscalYears (AccrualBasisofAccounting) 66and67 20042005200620072008200920102011 Net(expense)revenue Governmentalactivities(353,257)$(6,601,203)$(2,533,779)$(6,649,467)$(9,510,062)$(9,226,961)$(6,664,806)$(8,568,524)$ Business-typeactivities187,9283,391,5391,257,642(165,717)(1,829,997)(3,128,411)(3,972,925)(4,324,445) Totalprimarygovernmentnetexpense (165,329)$(3,209,664)$(1,276,137)$(6,815,184)$(11,340,059)$(12,355,372)$(10,637,731)$(12,892,969)$ Generalrevenuesandotherchangesin netassets Governmentalactivities Propertytaxes7,670,666$7,476,106$7,253,560$7,242,838$8,450,599$8,821,568$8,260,705$8,451,149$ Franchisetaxes–––––48,517371,258341,362 Unrestrictedgrantsandcontributions99,667200,000130,000288,940158,340406,73537,66519,359 Investmentearnings728,274985,4972,093,8772,170,0251,461,658770,178859,5831,467,780 Gainondisposalofcapitalassets–––––41,173–– Miscellaneous2,860,7282,799,7034,619,629528,193233,326366,961442,091354,501 Transfers(1,326,569)250,000250,000997,929371,245251,133(5,774,257)713,655 Totalgovernmentalactivities10,032,76611,711,30614,347,06611,227,92510,675,16810,706,2654,197,04511,347,806 Business-typeactivities Investmentearnings125,24589,987334,623326,356547,703188,178236,131495,484 Miscellaneous23,770(25,576)27,10062,664136,35642,360125,3261,555,509 Transfers1,326,569(250,000)(250,000)(997,929)(371,245)(251,133)5,774,257(713,655) Totalbusiness-typeactivities1,475,584(185,589)111,723(608,909)312,814(20,595)6,135,7141,337,338 Totalprimarygovernment 11,508,350$11,525,717$14,458,789$10,619,016$10,987,982$10,685,670$10,332,759$12,685,144$ Changeinnetassets Governmentalactivities9,679,509$5,110,103$11,813,287$4,578,458$1,165,106$1,479,304$(2,467,761)$2,779,282$ Business-typeactivities1,663,5123,205,9501,369,365(774,626)(1,517,183)(3,149,006)2,162,789(2,987,107) Totalprimarygovernment 11,343,021$8,316,053$13,182,652$3,803,832$(352,077)$(1,669,702)$(304,972)$(207,825)$ Note: CITYOFMONTICELLO ChangesinNetAssets LastEightFiscalYears(continued) (AccrualBasisofAccounting) TheCityimplementedGASBStatementNo.34infiscal2004.Thisinformationisnotavailableforpreviousyears. FiscalYear 68and69 2002200320042005200620072008200920102011 GeneralFund Reserved245,225$270,441$194,172$388,527$405,819$430,294$359,303$392,541$336,286$–$ Unreserved5,108,9535,116,9364,576,0724,735,8645,014,0945,131,1935,819,2494,705,0924,644,748– Nonspendable–––––––––386,616 Committed–––––––––3,374,200 Unassigned–––––––––649,821 TotalGeneralFund5,354,178$5,387,377$4,770,244$5,124,391$5,419,913$5,561,487$6,178,552$5,097,633$4,981,034$4,410,637$ Allothergovernmentalfunds Reserved64,293,618$10,264,666$14,144,908$14,754,923$17,912,418$27,072,957$16,663,801$10,280,326$7,884,431$–$ Unreserved,reportedin Specialrevenuefunds8,893,2567,999,5479,080,68718,425,89314,946,4437,554,33414,191,47318,451,82818,324,689– Capitalprojectsfunds237,4861,260,318(94,945)9,261,188(1,805,372)(630,214)(1,839,478)(2,124,391)(1,532,220)– Nonspendable–––––––––1,299,057 Restricted–––––––––22,140,662 Committed–––––––––2,662,124 Assigned–––––––––9,138,626 Unassigned Specialrevenuefunds–––––––––(141,890) Capitalprojectsfunds–––––––––(1,435,666) Totalallothergovernmentalfunds73,424,360$19,524,531$23,130,650$42,442,004$31,053,489$33,997,077$29,015,796$26,607,763$24,676,900$33,662,913$ Note:TheCityimplementedGASBStatementNo.54infiscal2011. (ModifiedAccrualBasisofAccounting) FiscalYear CITYOFMONTICELLO FundBalancesofGovernmentalFunds LastTenFiscalYears 70and71 2002200320042005200620072008200920102011 Revenues Taxes Generalpropertytaxes6,346,305$7,209,560$6,734,814$6,722,393$6,461,748$6,190,599$7,233,582$7,502,844$7,319,154$7,294,635$ Taxincrements672,382624,320935,852753,713791,812824,7141,172,4471,193,0211,155,3861,044,791 Specialassessments898,4551,292,4152,098,4993,341,5372,006,5193,112,3742,566,9322,462,6731,465,2641,856,134 Franchisetaxes–––––––48,517371,258341,362 Licensesandpermits705,179689,421797,458956,300758,718627,751917,539266,797217,184249,999 Intergovernmental473,8831,377,269689,891373,929937,0761,764,633550,2831,688,8951,620,7711,434,420 Chargesforservices2,304,6892,817,9413,223,0124,014,9562,796,8712,888,9812,290,0912,518,5482,890,0062,239,584 Finesandforfeits–––4,0001,7505,0272,2161,22020585 Earningsoninvestments–668,643728,274985,4972,093,8772,170,0251,461,658770,178859,5831,467,780 Miscellaneous2,382,1052,065,0431,979,0753,165,3724,564,660372,502197,988435,186643,873603,019 Totalrevenues13,782,99816,744,61217,186,87520,317,69720,413,03117,956,60616,392,73616,887,87916,542,68416,531,809 Expenditures Generalgovernment1,312,6131,417,4811,656,2071,544,4461,743,7161,899,0971,579,1641,634,3951,997,4582,039,270 Publicsafety892,1331,274,3891,608,6521,666,8692,760,0901,603,3311,736,9622,738,7681,684,2961,728,409 Publicworks1,418,3192,469,5232,332,2024,635,5193,594,8441,951,7122,380,9932,074,8111,562,1551,675,222 Sanitation386,641384,228410,768492,446474,045509,208514,208547,160534,903495,693 Cultureandrecreation506,5052,179,4292,395,0152,361,3022,271,2162,214,1082,220,3682,355,6692,164,5342,419,369 Economicdevelopment1,949,2131,039,230969,229637,7772,056,055772,852525,783842,8192,647,6871,198,449 Healthandwelfare114,367––––––––– Capitaloutlay3,609,2834,903,5212,649,31612,137,74013,074,9656,430,4213,522,1961,946,1534,138,4594,067,251 Debtservice Principal3,890,2462,167,9254,096,5391,911,1263,407,6553,388,3825,037,0286,749,2935,001,0004,860,000 Interestandpayingagentfees1,513,4811,418,3751,460,1831,426,3672,373,4382,256,3112,192,0631,801,3921,553,6611,383,095 Totalexpenditures15,592,80117,254,10117,578,11126,813,59231,756,02421,025,42219,708,76520,690,46021,284,15319,866,758 Excessofrevenuesover(under)expenditures(1,809,803)(509,489)(391,236)(6,495,895)(11,342,993)(3,068,816)(3,316,029)(3,802,581)(4,741,469)(3,334,949) Otherfinancingsources(uses) Transfersin1,965,2674,496,1205,859,5354,128,0108,181,3725,202,05116,818,09010,172,8784,687,1265,710,819 Transfersout(1,765,267)(4,366,120)(5,609,535)(3,878,010)(7,931,372)(4,204,122)(16,446,845)(9,921,745)(4,431,158)(4,997,164) Debtissued2,420,0002,420,0003,130,22225,150,000–5,137,90315,450,000–3,255,00010,735,000 Premiumondebtissued–––761,396–83,710–––301,910 (Discount)ondebtissued––––––––(19,530)– Refundedbondsredeemed––––––(15,908,564)–(865,000)– Deferredamortizedgain(loss)onrefunding––––––(384,432)––– Reimbursementofprojectcost937,340––––––––– Saleoflandheldforresale12,000––––(103,084)74,650––– Saleofcapitalassets–––––37,5202,57562,49667,569– Totalotherfinancingsources(uses)3,569,3402,550,0003,380,22226,161,396250,0006,153,978(394,526)313,6292,694,00711,750,565 Netchangeinfundbalances 1,759,537$2,040,511$2,988,986$19,665,501$(11,092,993)$3,085,162$(3,710,555)$(3,488,952)$(2,047,462)$8,415,616$ Debtserviceasapercentageofnoncapitalexpenditures 45.1%29.0%37.2%22.7%30.9%38.7%44.7%45.6%38.2%39.5% FiscalYear CITYOFMONTICELLO ChangesinFundBalancesofGovernmentalFunds LastTenFiscalYears (ModifiedAccrualBasisofAccounting) 72and73 Total MarketValue 67.645%663,496,800$1.5% 65.558739,007,6001.5 62.452812,855,3001.4 58.760882,038,3001.4 51.040993,647,3001.4 42.6011,243,461,1001.3 46.9421,282,400,7001.3 46.1911,245,407,6001.4 45.8221,188,222,1001.5 46.7291,106,541,4001.5 PercentageofTotalNetTaxCapacityValue 32.7%65.6%1.3%0.4%100.0% 35.962.51.20.4100.0 38.959.31.20.6100.0 41.556.71.30.6100.0 41.856.51.20.5100.0 42.855.01.11.1100.0 43.054.61.01.4100.0 41.855.51.01.7100.0 35.462.01.11.4100.0 31.965.51.21.4100.0 *Taxcapacityvaluedoesnotincludetaxincrement. Note: Source: CITYOFMONTICELLO TaxCapacityValueandEstimatedMarketValueofTaxableProperty LastTenFiscalYears WrightCountyCertificateofTaxesandTaxableProperties 2005 2004 2007 2006 2009 2008 2003 2002 2010 2011 2011 2004 2010 2003 2002 2007 2006 2005 TaxRate 5,182,370 5,824,238 6,929,517 3,309,037$ FiscalYearProperty PersonalCommercial PropertyProperty Residential Capacityasa NetTax Percentageof MarketValue TotalDirect Taxexemptpropertyvaluesarenotincludedintotalnetcapacityvalue. Miscellaneous and Agricultural 7,443,331 7,506,973 6,165,704 5,307,260 2008 2009 3,915,204 4,552,380 10,793,836 10,897,898 177,822 176,289 174,223 189,563 9,455,666 9,966,873 6,820,587 143,452 160,594 170,446 8,913,821 6,948,707 7,085,105 7,871,132 194,825 43,904$ 47,148 70,132 70,843 69,626 183,695 236,789 299,191 251,177 16,628,999229,016 Value* TaxCapacity TaxableNet Total 10,134,511$ 10,919,247 11,714,671 RealProperty 13,935,442 16,204,855 17,312,075 17,947,260 17,400,280 12,498,912 130,478$ 136,308 6,651,092$ 76and77 TaxableNetTaxMarketTaxableNetTax MarketValueCapacityValueRankValueCapacityValueRank XcelEnergy(NorthernStates)312,906,200$6,252,112$1 37.60 %258,560,000$5,165,344$1 50.97 % Wal-MartRealEstateBusinessTrust12,804,400255,33821.54–––– TargetCorporation11,818,900235,6283 1.42 –––– NewRiverMedicalCenter7,617,300152,3464 0.92 –––– HomeDepotUSA,Inc.7,224,000143,7305 0.86 –––– L&PVentures,LLC5,529,100109,8326 0.66 –––– MullerFamilyTheatres5,536,400109,5977 0.66 –––– AXTCRetail,LP5,156,900101,6388 0.61 –––– BBFProperties,Inc.3,977,40078,7989 0.47 3,547,70070,2045 0.69 Tapper’sHoldings,LLC3,999,40078,48810 0.47 3,587,20070,2444 0.69 PetersonHoldings,LLC––––6,549,800129,49621.28 JacobHoldingsofMonticello,LLC––––4,743,30093,3603 0.92 GouldBrothersChevrolet,LLP––––3,522,40069,69860.69 MonticelloWashingtonAssociation––––3,500,00069,6507 0.69 Tomann,Terrance&MaryFamily,LTD––––3,892,50068,4188 0.68 WrightCountyProducts––––3,061,30060,4769 0.60 Minnegasco,Inc.––––2,892,50057,85010 0.57 Total 376,570,000$7,517,507$45.21 %293,856,700$5,854,740$57.78 % Source: 2011 TotalNetTax Percentageof CITYOFMONTICELLO PrincipalPropertyTaxpayers CurrentYearandNineYearsAgo Taxpayer 2002 WrightCountyCertificateofTaxesandTaxableProperties CapacityValueCapacityValue TotalNetTax Percentageof 79and80 TotalTaxCollectionsinAbatements LevyforSubsequentand FiscalYearAmountYearsAmountAdjustmentsAmount PropertyTaxes: 6,498,187$6,444,716$99.18%50,510$6,495,226$99.95%(2,961)$–$–% 6,781,9466,724,02299.1551,1366,775,15899.90(6,788)–– 6,957,8976,877,21098.8477,8496,955,05999.96(2,838)–– 6,957,7766,870,96698.7585,2516,956,21799.98(1,559)–– 6,750,1326,633,09698.27104,0126,737,10899.81(11,310)1,7140.03 6,499,9146,305,82697.01158,1566,463,98299.45(23,890)12,0420.19 7,600,1897,385,19497.17126,3847,511,57898.83(55,411)33,2000.44 7,750,1197,501,31596.79120,4817,621,79698.34(20,948)107,3751.39 7,648,2727,435,63997.2248,1247,483,76397.85(9,337)155,1722.03 7,667,3097,446,12897.12–7,446,12897.12(16,982)204,1992.66 513,702$ TaxIncrements: 624,810$619,774$99.19%4,782$624,556$99.96%(254)$–$–% 612,731601,84098.226,882608,72299.35(4,009)–– 656,639653,01299.453,511656,52399.98(116)–– 736,301732,53499.493,767736,301100.00––– 779,400777,29799.73443777,74099.79–1,6600.21 889,262836,39794.061,210837,60794.19(49,965)1,6900.19 1,191,1771,184,40299.434,8671,189,26999.84–1,9080.16 1,247,6051,205,58296.6323,3161,228,89898.50(562)18,1451.45 1,193,3831,144,24395.8813,6061,157,84997.02(6,745)28,7892.41 1,110,8001,079,10997.15–1,079,10997.15(4,314)27,3772.46 79,569$ Source: CITYOFMONTICELLO PropertyTaxLeviesandCollections LastTenFiscalYears 2011 2004 2006 2004 2002 2011 2006 2009 2010 2007 ofLevy Percentage TotalUncollected ofLevy Percentage 2007 2003 WrightCounty December31, 2005 FiscalYear Ended toDate 2002 2003 2005 2009 2010 TotalCollectionsCollectedWithinthe FiscalYearoftheLevy ofLevy Percentage 2008 2008 81and82 BaseRateRate501–4,000Rate4,001–13,369RateOver13,369BaseRateRate501–4,000Rate4,001–13,369RateOver13,369BaseRateRateOver500 First500per100per100per100First500per100per100per100First500per100 CubicFeetCubicFeetCubicFeetCubicFeetCubicFeetCubicFeetCubicFeetCubicFeetCubicFeetCubicFeet 8.25$0.50$0.50$N/A8.25$0.50$N/AN/A10.00$1.73$ 8.250.500.50N/A8.250.50N/AN/A10.001.73 8.250.500.50N/A8.250.50N/AN/A10.001.73 8.580.520.52N/A8.580.52N/AN/A10.001.80 8.920.540.54N/A8.920.54N/AN/A10.401.87 10.260.620.71N/A10.260.62N/AN/A11.962.15 11.910.740.84N/A11.910.74N/AN/A13.752.47 12.400.780.88N/A12.400.78N/AN/A14.452.60 13.000.850.95N/A14.750.95N/AN/A15.152.75 14.300.951.101.2014.300.951.101.2016.753.00 N/A–NotAvailable Source: CITYOFMONTICELLO UtilityRatesperYear LastTenFiscalYears 2007 2011 2009 2008 CityofMonticelloutilitybillingdepartment 2010 FiscalYear 2004 2003 2002 2006 2005 SewerWater ResidentialCommercial 84and85 GeneralOtherGeneralGeneral ObligationGeneralObligationGeneralObligation ImprovementObligationTaxIncrementObligationRevenueContractImprovementRevenueTotalPrimary BondsBondsBondsNotesBondsforDeedBondsBondsGovernmentPerCapita(1) 9,160,000$220,000$2,410,000$12,626,289$7,345,000$–$–$–$31,761,289$12.36%3,593$ 7,760,0002,535,0002,360,00012,053,3647,305,000–––32,013,36411.083,275 6,715,0002,420,0001,100,00011,456,8257,170,0002,185,222––31,047,0479.963,041 31,065,0002,420,000970,00010,835,6996,910,0002,085,222––54,285,92116.345,092 30,255,0002,210,000810,00010,188,9736,650,000764,293––50,878,26614.194,569 28,415,0007,132,903680,0009,515,5926,220,000664,293907,097–53,534,88514.124,757 24,075,00015,737,903575,000–6,180,000564,293907,09726,445,00074,484,29319.016,553 21,535,00012,822,903470,000–5,555,000–837,09726,445,00067,665,00017.605,896 21,320,00011,531,903––4,920,000–747,09726,445,00064,964,00015.845,649 29,490,00010,196,903––3,960,000–654,09726,445,00070,746,00016.735,545 (1)SeetheScheduleofDemographicandEconomicStatistics. Note:DetailsregardingtheCity’soutstandingdebtcanbefoundinthenotestobasicfinancialstatements. CITYOFMONTICELLO RatiosofOutstandingDebtbyType LastTenFiscalYears 2011 2010 2009 2006 2007 FiscalYearIncome(1) ofPersonal Percentage Business-TypeActivities 2008 2002 2003 2004 2005 GovernmentalActivities 86and87 FiscalYear 2002200320042005200620072008200920102011 13,269,936$14,780,152$16,257,106$17,640,766$19,872,946$23,203,682$37,303,833$38,074,842$35,646,663$33,196,242$ 7,545,0007,420,0007,170,0006,910,0006,650,0006,100,0006,180,0005,585,0004,985,0004,365,000 5,724,936$7,360,152$9,087,106$10,730,766$13,222,946$17,103,682$31,123,833$32,489,842$30,661,663$28,831,242$ Totalnetdebtapplicabletothelimit 56.86%50.20%44.10%39.17%33.46%26.29%16.57%14.67%13.98%13.15% Marketvalue(payable2011value)1,106,541,400$ Debtlimit(3%ofmarketvalue)33,196,242 Debtapplicabletolimit Othergeneralobligationbonds10,851,000 Lessamountsforgeneralobligationbonds notsubjecttolimit(6,486,000) Totalnetdebtapplicabletolimit4,365,000 Legaldebtmargin28,831,242$ Note: CITYOFMONTICELLO LegalDebtMarginInformation LastTenFiscalYears AllMinnesotamunicipalities(counties,cities,towns,andschooldistricts)aresubjecttostatutory“netdebt”limitationsundertheprovisionsofMinnesotaStatutes,Section475.53.Underthisprovision,beginningwithissueshavinga settlementdateafterJune30,2008,thestateofMinnesotaincreasedthelegaldebtlimitfrom2percentto3percentoftheCity’staxablemarketvalue. Totalnetdebtapplicabletolimit Legaldebtmargin LegalDebtMarginCalculationforFiscalYear2011 Debtlimit asapercentageofdebtlimit 90and91 2002200320042005200620072008200920102011 Function N/AN/AN/A16.6016.6016.6017.6017.6019.0019.00 N/AN/AN/A3.003.003.003.003.003.003.00 N/AN/AN/A21.5021.5021.5021.5019.5019.5019.00 Cultureandrecreation N/AN/AN/A5.005.005.005.005.005.005.00 N/AN/AN/A8.008.008.008.008.008.008.00 CommunitydevelopmentN/AN/AN/A2.002.002.002.002.002.002.00 N/AN/AN/A4.004.004.004.004.004.004.00 N/AN/AN/A10.0010.0010.0010.0010.0010.0010.00 FiberNetN/AN/AN/A––––6.0011.0011.50 TotalN/AN/AN/A70.1070.1070.1071.1075.1081.5081.50 N/A–NotAvailable Source:CityFinanceDepartment CITYOFMONTICELLO Full-TimeEquivalentCityGovernmentEmployeesbyFunction LastTenFiscalYears FiscalYear Publicworks Engineering Generalgovernment Sewer/water Parks Maintenance Liquorstore Communitycenter 95and96 2002200320042005200620072008200920102011 Function Fire 288316278325266317395375282284 N/AN/AN/A103050120160225175 Salt(tons)N/AN/AN/A114164274474475521445 Sand(tons)N/AN/AN/A320319347611615710547 Cracksealant(pounds)N/AN/AN/AN/A11,11514,20018,15015,00023,58011,384 Asphaltrepairs(tonsofasphalt)N/AN/AN/AN/A300330200200200253 Cultureandrecreation Shadetreesplanted80––––384410425150140 DiseasedtreesremovedN/AN/AN/AN/AN/AN/A868200180113 Trailsmaintained(miles)N/AN/AN/AN/AN/AN/A17171717 CommunitycenterusersN/AN/AN/AN/A145,700168,923186,429186,279183,527190,014 ProgramsalesN/AN/AN/AN/A67,02188,412129,339149,829167,723168,159 RentalrevenueN/AN/AN/AN/A148,533139,096136,547127,612184,913154,962 Economicdevelopment Permitsissued1,1821,1561,1991,4121,3239623,681879495372 Permitvaluation40,187,772$39,599,263$62,300,360$68,069,444$45,572,690$45,917,000$45,950,000$11,630,000$9,033,078$5,333,124$ Water Metersreplaced261118648110994111280145215 Curbboxrepairs(watervalves)212505050505075200200200 Hydrantrepair175175175175175175175175175430 Averageannualresidentialwateruse259,476,712353,452,926324,868,043344,197,058419,892,135467,673,488409,879,658430,263,791376,687,840348,580,072 Averagedailyconsumption(MG)1.2321.5641.4971.5691.8171.9211.7491.8061.6251.557 Maximumdailygallonspumped(MG)3.1404.4014.2094.8895.2715.1504.7284.4963.5654.116 Sewer Sewageflow(MG)361395404434414423408390398431 Milesjetted20202020202020202527 Blocksrodded333333332510 Milesinspected20202020202020203030 Library ItemscheckedoutN/AN/AN/AN/A188,704209,174216,599219,694248,327228,886 ProgramsofferedN/AN/AN/AN/A232145155170164153 ProgramparticipantsN/AN/AN/AN/A4,1963,5373,8694,1003,6043,807 Deputyregistrar(DMV) Motorvehicletransactions41,05447,68444,68446,49245,22540,95045,59548,00051,25054,814 DNRtransactionsN/AN/AN/AN/A5,3075,5806,0006,5005,9825,616 Game/fishtransactionsN/AN/AN/AN/AN/A167235250156325 DealershipsservicedN/AN/AN/AN/A181421253034 DriverslicensestransactionsN/AN/AN/AN/AN/AN/AN/A450605579 N/A–NotAvailable MG–MillionsofGallons Note:Indicatorsarenotavailableforthegeneralgovernmentcityfunctions. Sources:Variouscitydepartments CITYOFMONTICELLO OperatingIndicatorsbyFunction LastTenFiscalYears Callsforservice(engineering) Publicworks Callsforservice FiscalYear 97and98 2002200320042005200620072008200920102011 Function Publicsafety Fire Firestationsinservice1111111111 Numberofvolunteers–––30303030303030 Publicworks Streets(miles)–––52.465.767.667.668.068.068.0 Cultureandrecreation Parksacreage––––––120180509635 Parks18181818191920202828 Parkbuildings99999910111515 Communitycenter(squarefootage)81,00081,00081,00081,00081,00081,00081,00081,00081,00081,000 Water Firehydrants700700700700700700700700700700 Note:Nocapitalassetindicatorsareavailableforthegeneralgovernmentandeconomicdevelopmentfunctions. Sources:Variouscitydepartments CITYOFMONTICELLO CapitalAssetStatisticsbyFunction LastTenFiscalYears FiscalYear 99and100