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1996 Audit ReportA. L'pp% CITY OF RONTICELLO COMPREHENSIVE ANNUAL FINANCIAL REPORT Year Ended Deceaber 31, 1996 j_ ftxbo nm mrt pp IL11CC1Iii r CITY OF MONTICELLO COMPREHENSIVE ANNUAL FINANCIAL REPORT Year Ended December 31, 1996 CITY OF MDNTICELLG TABLE OF CONTENTS I. INTRODUCTORY SECTION Miscellaneous Data II. FINANCIAL SECTION Page Independent Auditor's Report on Financial Statements I A. General Purpose Financial Statements Exhibit Combined Balance Sheet - All Fund Types and Account Groups 1 2 Combined Statement of Revenues, Expenditures and Changes in Fund Balances - All Governmental Fund Types 2 3 Combined Statement of Revenues, Expenses and Changes in Retained Earnings - All proprietary Fund Types 3 4 Combined Statement of Cash Flows - All Proprietary Fund Types 4 5 Combined Statement of Revenues, Expenditures and Changes in Fund Balances - Budget (GAAP Basis) and Actual - General and Special Revenue Funds 5 6 Notes to Financial Statements Statement 7-27 B. Combining and Individual gy,1,j, Statements General Fund: Statement of Revenues, Expenditures and Changes in Fund Balance - Budget (GAAP Basis) and Actual A-1 28-30 Special Revenue Funds: Combining Balance Sheet B-1 31-32 Combining Statement of Revenues, Expenditures and Changes in Fund Balances 13-2 33-34 Shade Tree Fund: Statement of Revenues, Expenditures and Changes in Fund Balance - Budget (GAAP Basis) and Actual B-3 35 Orderly Annexation Fund: Statement of Revenues, Expenditures and Changes in Fund Balance - Budget (GAAP Basis) and Actual B-4 36 Capital Outlay Revolving Fund: Statement of Revenues, Expenditures and Changes in Fund Balance - Budget (GAAP Basis) and Actual B-5 37 CITY OF MONTICELLO TABLE OF CONTENTS B, rnmhinina and Individual F�_d Statements (Continued) Library Fund: statement Page Statement of Revenues, Expenditures and Changes in Fund Balance - Budget (GAAP Basis) and Actual B-6 38 Housing and Redevelopment Authority Fund: Statement of Revenues, Expenditures and Changes in Fund Balance - Budget (GAAP Basis) and Actual B-7 39 Urban Development Action Grant Fund: Statement of Revenues, Expenditures and Changes in Fund Balance - Budget (GAAP Basis) and Actual B-8 40 Economic Development Authority Fund: Statement of Revenues, Expenditures and Changes in Fund Balance - Budget (GAAP Basis) and Actual B-9 41 Water Improvement Fund: Statement of Revenues, Expenditures and Changes in Fund Balance - Budget (GAAP Basis) and Actual B-10 42 Sever Improvement Fund: Statement of Revenues, Expenditures and Changes in Fund Balance - Budget (GAAP Basis) and Actual B-11 43 Central Minnesota Initiative Fund: Statement of Revenues, Expenditures and Changes in Fund Balance - Budget (GAAP Basis) and Actual B-12 44 Economic Recovery Grant Fund: Statement of Revenues, Expenditures and Changes in Fund Balance - Budget (GAAP Basis) and Actual B-13 45 Storm Sever Access: Statement of Revenues, Expenditures and Changes in Fund Balance - Budget (GAAP Basis) and Actual B-14 46 Debt Service Funds: Combining Balance Sheet C-1 47-49 Combining Statement of Revenues, Expendi- tures and Changes in Fund Balances C-2 50-52 Capital Projects Fund: Combining Balance Sheet D-1 53 Combining Statement of Revenues, Expendi- tures and Changes in Fund Balance D-2 54 CITY OF MONTICELLO TABLE OF CONTENTS B. Combining and Individual Fund Statements (Continued) Statement Proprietary Funds: Paae Combining Balance Sheet E-1 55 Combining Statement of Revenues, Expenses and Changes in Retained Earnings E-2 56 Combining statement of Cash Flows E-3 57 Sewer Fund: Comparative Balance Sheets E-4 58 Comparative Statements of Revenues, Expenses and Changes in Retained Earnings - Budget (GAAP Basis) and Actual E-5 59 Comparative Statements of Cash Flows E-6 60 i water Fund: Comparative Balance Sheets E-7 61 Comparative Statements of Revenues, Expenses O and Changes in Retained Earnings - Budget (GAAP Basis) and Actual E-8 62 Comparative Statements of Cash Flows E-9 63 Liquor Fund: Comparative Balance Sheets E-10 64 Comparative Statements of Revenues, Expenses and Changes in Retained Earnings E-11 65 Comparative Statements of Cash Flows E-12 66 Comparative Statements of Revenues and Expenses - Budget (GAAP Basis) and Actual E-13 67 Transportation Fund: Comparative Balance Sheets E-14 68 Comparative Statements of Revenues, Expenses and Changes in Retained Earnings - Budget (GAAP Basis) and Actual B-15 69 Comparative Statements of Cash Flows E-16 70 Cemetery Fund: Balance Sheet E-17 71 Statement of Revenues. Expenses and Changes in Retained Earnings - Actual E-18 72 Statement of Cash Flows E-19 73 CITY OF MONTICELLO TABLE OF CONTENTS III. SUPPLEMENTAL INFORMATION qched,l, Page Computation of Legal Debt Margin 1 74 Bonded Indebtedness General Obligation Bonds 2 75 Bonded Indebtedness General Obligation Special Assessment Bonds 3 76 Bonded Indebtedness • General Obligation Tax Increment Bonds 4 77-78 Tax Levies to Retire Bonded Indebtedness 5 79 Auditor's Report on Legal Compliance so i 0 Officials - 1996 Mayor Council Member Council Member Council Member Council Member Clerk -Treasurer and Administrator CITY OF MONTICELLO MISCELLANEOUS DATA Rick Wolfateller Appointed Term R—ire, Brad kyle 12/31/96 Brian Stumpf 12/31/98 Clint Herbst 12/31/98 Tom Perrault 12/31/96 Shirley Anderson 12/31/96 Rick Wolfateller Appointed Gruy,Crnn ext Pu2Nie Annuntgnb and IN Man thhr, Sulu 1 Y soft,.. MN' 113f i (6f 2)6NLi'62 fif 1 lyssa, It. Pt 6u +t'. —W 1 Momkrth, 31h Si,Mi (bi 2) SV1 sari Botfness (:ontnaonb Bord&iA 701(:emtat A— U.. P O Eon y 4l, �.w s 4. Mk'tuA, ii\ 11i'b (fii n a9'-2 11 a AAILn &� t� INDEPENDENT AUDITOR'S REPORT ON FINANCIAL STATEMENTS Tothe Mayor and City Council City of Monticello, Minnesota We have audited the accompanying general purpose financial statements of the City of Monticello. Minnesota, as of and for the year ended December 31, 1996, as �• listed in Section II -A of the table of contents. These general purpose financial statements are the responsibility of the city's management. Our responsibility is to express an opinion on these general purpose financial statements based on our audit. �• We conducted our audit in accordance with generally accepted auditing standards. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the general purpose financial statements are free of ' material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audit provides a reasonable basis for our opinion. In our opinion, the general purpose financial statements referred to above present fairly, in all material respects, the financial position of the City of Monticello, Minnesota as of December 31. 1996, and the results of operations and the changes in cash flows of its proprietary fund types for the year then ended in conformity with generally accepted accounting principles. �. Our audit was made for the purpose of forming an opinion on the general purpose financial statements taken as a whole. The combining, individual fund statements and schedules listed in the table of contents are presented for purposes of additional analysis and are not a required part of the general purpose financial statements of the City of Monticello, Minnesota. Such information has been subjected to the auditing procedures applied in the audit of the general purpose financial statements and, in our opinion, is fairly stated in all material respects in relation to the general purpose financial statements taken as a whole. L' 80RDEN CARLSON 6 ASSOCIA ES P.A. Certified Public Accountants �- May 30, 1997 See accompanying Notes to Financial Statements. 2 CITY OF MONTICELLO Exhibit 1 COMBINED BALANCE SHEET - ALL FUND TYPES AND ACCOUNT GROUPS December 31, 1996 With Comparative Totals at December 31, 1995 PROPRIETARY TRUST AND TOTAL IMENO ONLYI rnygRlJi{E37fAi, pimp 7YPvv PIIND TYPBS AGENCY ACCOVNT GROVPS General General General Capital Proieete Debt Service Special Revenue Agency @ltermrlee ILad Fixed Long -Term A.atul Debt 1996 1995 Cash and investment. $ 3.006,044 S 1,228,338 S 3,860,963 S 1.006,096 S 829.258 S 11.931,479 $ 9,721,236 Receivable. Accounts 29,877 88.115 10.267 52.989 220,592 401,620 545,773 Special assessment. - deferred 2,215 2,181.601 122,763 27,381 2,334,040 2,552,051 Special assessment. - delinquent 9,114 951.793 32,186 5,759 998,354 988,435 Due from other fund. 178,000 178.000 161,000 Land held for resale 91,777 91.727 146. a25 Long-term receivable 20,162 75,805 616,223 712,710 597,013 Inventory 2011500 201,500 172,612 Prepaid expenses 23,747 226 9.314 33.287 35,773 General fixed asset. S 13.148.472 13.748.472 12,673.759 Property and equipment (net of accumulated depreciation) 10,685,991 10,685,991 9,236,009 Amountavailable in Debt Seryice Pund. S 3.578.516 3.578.516 3.097,177 Amount to be provided for retire- ment of gene rel long-term debt 6.166.484 6,186,484 7.167,023 Other eaeets - deferred compen- sation plan fat market) S 17]_880 373.880 ]10.629 TOTAL ASSETS S ].091.979 5 1.392.256 $ 7.004.164 S 4.100.212 S 11.979.795 S 373.680 S 1].748.472 5 9.765.000 5 51.455.760 S 47.566.193 LI e1 ITI 9 Cash deficit $ 1,601,443 S 292,675 S 12,913 a 1,907,031 $ 249.044 Account. payable ♦ 100,868 18,683 $ 20,392 42,703 187,646 259,213 Contracts payable 472.502 472,502 218,172 Other accrued expenses 212,729 293 78,550 291,072 229,731 Due to other funds 108.000 70,000 178,000 161.000 Deterred [eve nue 11,329 102,802 3,132.973 162.951 33,140 3.443,195 4.099.508 Gene- l obi lgetlon bonds payable S 1,420,000 1.420.000 1.675,000 General obligation tax increment bond. Payable 1,265.000 1,7:5,000 1.695,000 Special aseeeement bonds payable 7,060,000 7.060,000 7.075.000 Deferred compensation fund. held for participant: _ 373.660 371.860 310.629 Total Liabilities S 324.426 S 2.195.430 _ 3.425.648 $ 291.636 S 217.306 5 ]7]_000 S 9.765.000 L-16—All—Ilk 1 15.772.157 FUND EQUITY Contributed capital $ 9,892,200 S 9,892.200 S 6.430.164 Investmentin general fixed assets $ 13.748,472 13,748,472 12,673,759 Retained earning. Unreserved 1,850,289 1.BSO.289 1.574.029 Fund Balance Reserved for noncurrent loan. ceivabla S 20,182 $ 75,(305 $ 616,223 732,210 597,013 Reserved for fixed eaeets held for resale 91,727 91,727 146.825 Reserved for debt service S 3,578,516 3,518,516 3,097,177 Unreserved Designated for subsequent year's expenditure. 1,725,720 (87:,977) 946,741 2,006.017 Undesignated 1.021.651 3.100.626 4.122.277 3 OAR 652 Total Fund Equity S 2.767.553 S 1803.172) S 3,576.516 S 3.806.576 a 11742-489 S 13.748.472 S 34-842.434 K 31.911.936 TOTAL LIABILITIES AND FUND EOUITY S ]_091.979 S 1.392.256 A -1—W-164 L 4400.9" a 11 S 371.660 a SiG�a S 9.765 OOp S 51.455.]60 6 4 See accompanying Notes to Financial Statements. 2 CITY OF MONTICELLO COMBINED STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES ALL GOVERNMENTAL FUND TYPES For The Year Ended December 31, 1996 With Comparative Totals For The Year Ended December 31, 1995 Revenues Taxes Collections on special assessments Licensee and permits Intergovernmental Chargee for service Fines and forfeits Miscellaneous Total Revenues Expenditures General government Public safety Public works Sanitation Health and welfare Parks and recreation Community development Capital projects Debt service Principal retirement Interest and fiscal charges Total Expenditures Excess (Deficiency) of Revenues over Expenditures Other Financing Sources (Uses) Bond proceeds Transfers in Transfers out Total other Financing Sources (Uses) Excess of Revenues and Other Sources over Expendi- tures and Other Uses Fund Balances at Beginning of Year Prior Period Adjustment FUND BALANCES AT END OF YEAR See accompanying Notes to Financial Statements. 3 GOVERNMENTAL FUND TYPES Capital Debt Special 5 2,076,105 $ 595,010 $ 823,434 1,121,624 37,582 227,048 329,296 54,651 28,946 173,917 434,243 392.208 S 768.739 161.735 215 StQ S 3.198.574 S 768.739 5 1.935.020 5 1.539.745 $ 759,403 $ 11,773 505,114 346 803,250 317,280 64,899 138,375 31,764 117,535 460,295 $ 2,712,256 58,210 $ 2,550,000 $ 629,919 $ 1,409,920 124,619 625,760 $ 381,250 S (178.650) 13.265) (310.910) 1526.179) S (178.650) S 751.273 S 1.724.770 S (144.929) $ 294,068 $ (1,192,244) $ 481,341 $ 832,428 2,467,354 389,072 3,097,175 2,982,279 4 11 (6 11 1) S 2.767.553 S 1803.172) S 3.578.516 5 3.808.576 Exhibit 2 TOTALS (MEMO 1996 MRa 1995 $ 3,494,549 $ 3,327,598 1,159,206 449,145 227,048 202,519 412,893 470,306 608,160 437,374 1.540.222 5 7.442.078 205 1.640.004 S 6.527.151 $ 771,176 $ 790,872 505,460 508,279 803,250 586,701 317,280 273,922 64,899 76,476 170,139 198,043 597,830 220,848 2,770,466 4,721,938 2,550,000 628.449 S 9.178.949 925,000 494,284 S 8.786.363 S (1.736.871) S (2.259.212) $ 2,039,839 $ 3.858,880 1,131,629 1,013,341 $ 41S,593 $ 2,031,964 8,935,880 6,903,920 0 rt 9.351 473 8.935.884 CITY OF MONTICELLO Exhibit 3 COMBINED STATEMENT OF REVENUES, EXPENSES AND CHANGES IN RETAINED EARNINGS - ALL PROPRIETARY FUND TYPES For The Years Ended December 31, 1996 and 1995 Operating Revenues Charges for services Gross profit Total operating Revenues Operating Expenses Salaries and employee benefits Professional services Supplies and materials Repairs and maintenance Utilities Depreciation Other Total operating Expenses Operating Income (Was) Non -Operating Revenues Interest income Other Total Non -Operating Revenues Net Income (Loss) Before Transfers Transfers (out) Net Income (Lose) Retained earnings at beginning of year Add depreciation on contributed assets Retained Earnings at End of Year Contributed capital at beginning of year Assets contributed during year Depreciation -contributed assets Contributed Capital at End of Year RETAINED EARNINGS/CONTRIBUTED CAPITAL AT END OF YEAR PROPRIETARY Enterprise FUND TYPES Enterprise 1996 1995 $ 884,011 450.753 S 1.334.764 $ S 796,697 386.190 1.182.887 $ 280,691 $ 269,940 524,084 510,825 52,453 45,728 11,569 13,914 70,882 57,251 848,989 76.080 632,405 64.383 S 1.865.548 S (530.784) S S 1 594.446 (411.559) $ 36,333 59.841 96.174 $ 5 75,604 33.232 108.836 S $ (434,610) 1112.625) $ (302,723) 1432.296) $ (547,235) $ (735,019) 1,574,029 822.227 S 1.849.021 S 1,707,717 601.331 1.574.029 $ 8,430,164 $ 9,024,422 2,285,531 (822.227) S 9.893.468 S 7,073 (601.331) 8.430.164 See accompanying Notes to Financial Statements. 4 CITY OF MONTICELLO Exhibit 4 COMBINED STATEMENT OF CASH FLOWS - ALL PROPRIETARY FUND TYPES For The Years Ended December 31, 1996 and 1995 See accompanying Notes to Financial Statements. 5 PROPRIETARY Enterprise FUND TYPES Enterprise 1996 1995 Cash flows from operating activities: Net income (lose) before transfers $ (434,610) $ (302,723) Adjustments to reconcile net income to net cash provided by operating activities: Depreciation 848,989 632,405 Changes in assets and liabilities (Increase) decrease in accounts receivable (27,423) 6,515 (Increase) decrease in inventory (28,888) 3,122 (Increase) decrease in prepaid expenses 1,012 (506) (Increase) decrease in special assessments receivable - deferred (910) (1,676) (Increase) decrease in special assessments receivable - delinquent 656 Increase (decrease) in accounts payable 20,494 (18,676) Increase (decrease) in accrued expenses 14,382 3,116 Increase (decrease) in due to other funds 20,000 (50,000) Increase (decrease) in deferred revenue 254 9.794 Net Cash Provided by Operating Activities S 413.956 S 273.253 Cash flows used in noncapital financing activities: Operating transfers out S (112.625) ,S 1417 7q6) Cash flows from capital and related financing activities: Capital expenditures Equipment $ (2,236) $ (49,605) Building and improvements 311.122) (16.165) Net Cash (Used) in Financing Activities S 113.358) S (65.770) Net increase (decrease) in cash and cash equivalents $ 287,973 S (224,813) Cash and cash equivalents at beginning of year 528.372 753.195 Cash and Cash Equivalents at End of Year S5 816 34c3n5 S 529.372 Non -Cash Transactions: Contributed Assets Land, Buildings and Improvements S 2.285.531 S 7.073 Total Non -Cash Transactions L-2."" $� 7�p73073 See accompanying Notes to Financial Statements. 5 CITY OF MONTICELLO COMBINED STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES - BUDGET (GAAP BASIS) AND ACTUAL - GENERAL AND SPECIAL REVENUE FUNDS For The Year Ended December 31, 1996 Revenues Taxes Special assessments Licenses and permits Intergovernmental Charges for service Fines and forfeits Miscellaneous Total Revenues Expenditures General government Public safety Public works Sanitation Health and welfare Parks and recreation Community development Capital projects Total Expenditures Excess of Revenues over Expenditures Other Financing Sources (Uses) Transfers in Transfers Out Total Other Financing Sources (Uses) Excess of Revenues and Other Sources over Expenditures and Other Uses Fund Balances at Beginning of Year Prior Period Adjustment FUND BALANCES AT END OF YEAR See accompanying Notes to Financial Statements. 6 Exhibit 5 QENERAL SPECT 1. BMW= Ftnrn.� variance variance Budget Actual Favorable f Unfavozable) Budget Actual Favorable (Unfavorable) $ 2,063,899 $ 2,076,105 $ 12,206 $ 816,681 $ 823,434 $ 6,753 34,665 37,582 2,917 143,275 227,048 83,773 282,966 329,296 46,330 28,401 28.946 S45 100,000 106,854 6,854 269,030 434,243 165,213 190.435 459.271 268.836 100.415 215.540 135 '2, S 290.553 S 1,539.745 1.249.192 S 417.999 S S 3,19a.574 S 2.780.575 $ 762,510 $ 759,403 $ 3,107 $ 33,995 $ 11,773 $ 22,222 480,525 505,114 (24,589) 346 (346) 670,940 803,250 (132,310) 286,270 317,280 (31,010) 81,740 64,899 16,841 205.480 138,375 67,105 20,385 31,764 (11,379) 194,010 137,535 56,475 96,437 460,295 (363,858) E52 4.67. 58.210 601.252 S 2.681.475 S 99.100 S ,2,,725.856 S 472.718 $ (44 3141) S S 373.618 S 810.279 438.913 5 562.38% S 977.357 S 247.891 S 538.444 $ 100,000 $ 381,250 $ 201.250 $ (49 3('-Q) S (178.650) 5 {79.550) (227.450) (526.179) (298.729) S fq4 in(l) S (178.650) S (79.550) S (127.450) S (144.929) S (17.479) S $ 294,068 2 S 311.463 $ 832,428 5 520.965 2,467,354 2,982,279 6 371 S 2.767.55'+ (6.131) S 3.808.576 CITY OF MONTICELLO NOTES To FINANCIAL STATEMENTS December 71, 1996 The accounting policies of the City of Monticello, located in Wright County in Minnesota, conform to generally accepted accounting principles as applicable to governmental units. The following is a summary of the more significant policies: A. ReRortina Entity The City's financial statements include the operations of all organizations for which the City Council is financially accountable, or for which the exclusion of the component unit would render the financial statements of the primary government misleading. The criteria used to determine if the primary government is financially accountable for a component unit include whether or not the primary government appoints the voting majority of the potential component unit, is in a relationship of financial benefit or burden with the potential component unit, or is fiscally depended upon by the potential component unit. Based on the aforementioned criteria, the operations of the following entities have been included in or excluded from the accompanying financial statements: Entities included in the financial statements: a. Housing and Redevelopment Authority (HRA) --The HRA was created by the City to provide economic development and redevelopment financial assistance through creation of Tax Increment Finance Districts. Debt issues of the HRA are City general obligations. The operations of the HRA are accounted for as a special revenue fund on the City's books. A copy of the reportable information for the HRA is on file at the City Hall in Monticello. Entities excluded from the financial statements: b. Independent School District No. 882, Monticello, Minnesota --The School District is established in accordance with State statutes as a separate and district governmental unit. C. Monticello Volunteer Fire Relief Association (Association) --The Association is organized as a non-profit organization by its members to provide pension and other benefits to such members in accordance with Minnesota statutes. The Association's Board of Directors is elected by the membership of the Association. All funding is obtained in accordance with Minnesota statutes whereby state aids flow to the Association and tax levies are determined by the Association and reviewed by the City. The Association pays benefits directly to its members. B. Basis of Presentation --Fund Acr—ting The operations of the City are recorded in the following fund types and account groups: i CITY OF MONTICELLO NOTES TO FINANCIAL STATEMENTS December 31, 1996 Note i summary of Significant Accounting Policies - Continued B. Basin of Presentation --Fund Accounting - Continued Governmental and Tv= Governmental funds are used to account for the City's expendable financial resources and similar related liabilities (except those accounted for in the proprietary and similar trust funds). The measurement focus is upon determination of changes in financial ' position. Tt.e following are the City's governmental fund types: General end --The general fund is the general operating fund of the City. It is used to account for all financial resources except those required to be accounted for in another fund. Special Revenue FundsSpecialrevenue funds are used to account for the proceeds of specific revenue sources that are legally ' restricted to expenditures for specified purposes. Debt 'c Buda-•Debt service funds are used to account for the accumulation of resources for, and the payment of, general long-term debt principal, interest and related costa. Cal2ital Projects Fonda --capital projects funds are used to account for financial resources to be used for the acquisition 1 or construction of major capital facilities (other than those financed by proprietary funds and trust funds). ' Proprietary Fund =P., Proprietary funds are used to account for activities that are similar to those often found in the private sector. The measurement focus is upon determination of net income and capital maintenance. The following is the City's proprietary fund type: En�,pzise Funds --Enterprise funds are used to account for operations (al that are financed primarily through user charges, or (b) where the governing body has decided that determination fof net income is appropriate. 1_ Fiduciary Fund Tvnea Trust and Agency Funda--Fiduciary funds are used to account for assets held by the City in a trustee capacity or as an agent. Trust funds include expendable trust funds, nonexpendable trust funds and pension trust funds. Nonexpendable trust funds and pension trust funds are accounted for as proprietary funds. Expendable trust funds are accounted for as governmental funds. Agency funds are custodial in nature and do not involve measurement of results cf operations. I Account Grouns General FiXed Anspt Account Greun--This account group is used to account for all fixed assets of the City, other than those accounted for in proprietary and trust funds. 8 1 CITY OF MONTICELLO f NOTES TO FINANCIAL STATEMENTS December 31, 1996 Note j Summary of Sionifscant Accounting Policies - Continued B. Basis of Presentation --Fuad Accounting - Continued Account Orouos - Continued General Long -Term Debt Account .roup --This account group is used to account for all long-term obligations of the City except those accounted for in proprietary and trust funds. C. Basis of Accounting The modified accrual basis of accounting is followed by governmental funds, expendable trust funds and agency funds. Under the modified accrual basis of accounting, revenues are recorded when they become measurable and available to pay liabilities of the current period. Revenues not considered available are recorded as deferred revenues. Expenditures are recorded when the liability is incurred except for interest on general long-term obligations, which is recorded when due. 1 In applying the susceptible to accrual concept to intergovernmental revenues, there are essentially two types of revenues. In one, moneys must be expended for the specific purpose or project before any amounts will be paid to the City: therefore, revenues are recognized based upon the expenditures incurred. In the other, moneys are virtually unrestricted and are usually revocable only for failure to comply with prescribed compliance requirements. These resources are reflected as revenues at the time of receipt or earlier if the susceptible to accrual the is met. Property taxes are recognized as revenue in the year for which taxes have been levied, provided they are collected within 60 days after year-end. Special assessments are recorded as revenue in the year the individual installments are collected. Licenses and permits, fines and forfeitures and miscellaneous revenues are generally recorded as revenues when received. Investment earnings are recorded as earned. The accrual basis of accounting is used by proprietary funds and nonexpendable trust funds. Unbilled service revenue is accrued in proprietary funds. fD. Budgets IWd 9 udo ary A o nti,�g a- The City follows these procedures in establishing the budgetary data reflected in the financial statements: a. Prior to September 1, the city administrator submits to the City Council a proposed operating budget for the fiscal year commencing the following January 1. The operating budget includes proposed expenditures and the means of financing them. b. Public hearings are conducted to obtain taxpayer comments, and the final tax levy and budget are adopted. 9 CITY OF MONTICELLO NOTES TO FINANCIAL STATEMENTS December 31, 1996 dote 1 Summary of Sianificant Accott ting Policies - Continued D. Budgets and Budgetary Accotntinq - Continued C. The City Administrator is authorized to transfer budgeted amounts between departments within any fund; however, any revisions that alter the total expenditures of any fund must be approved by the City Council. d. Formal budgetary integration is employed as a management control device during the year for the general fund, special revenue funds and enterprise funds. Formal budgetary integration is not employed for the capital projects and debt service funds. e. Budgets are adopted on a basis consistent with generally accepted accounting principles. Budgeted amounts are as originally adopted, or as amended by the City Council. E. Cash and Investments Cash balances from all funds are combined and invested to the extent available in certificates of deposit and other allowable invest- ments. Earnings from investments are allocated to the respective funds on the basis of applicable cash balance participations by each fund. For purposes of the statements of cash flows, all highly liquid investments with a maturity of three months or less when purchased are considered to be cash equivalents. Temporary cash investments are stated at cost plus accrued interest, which approximates market. F. Special Assessments Receivable Special assessments receivable include the following components: a. Delinquent installments including interest remaining unpaid as of year end. b. Deferred installments which will be billed to property owners in the future. In accordance with generally accepted accounting principles, such amounts not collected within 60 days after year end are unavailable for current operations and, therefore, are deferred. G. Inventories Inventories are valued at lower of cost (first -in, first -out) or market. 10 CITY OF MONTICELLO NOTES TO FINANCIAL STATEMENTS December 31, 1996 Note i Summary of Significant Accounting _ Policies - Continued H. General Fixed Asset, General fixed assets are recorded as expenditures in the govern- mental funds and capitalized at cost in the general fixed assets account group. Contributed fixed assets are recorded at their estimated fair market value at the time received. Certain improvements such as roads, bridges, curbs and gutters, streets and sidewalks, drainage systems and lighting systems are not capitalized. Such assets normally are immovable and of value only to the City. Therefore, the purpose of stewardship for capital expenditures is satisfied without recording these assets. Deprecia- tion is not provided on general fixed assets. 91E1FTZ=TJ2�%P M., � •n . a Property, plant and equipment used by proprietary funds are stated at cost or estimated historical cost. Contributed fixed assets are recorded at estimated historical cost. Contributed fixed assets are recorded at estimated fair market value at the time received. Net interest costs are capitalized on projects during the construction period. Depreciation is provided using the straight-line method over estimated useful lives ranging from 25 to 50 years for buildings, 10 to 20 years for improvements other than buildings and 3 to 10 years for equipment. a,MM Reserved fund balance indicates the portion of fund equity which has been legally segregated for specific purposes. Unreserved designated fund balance indicates the portion of fund equity for which the City has made tentative plans. Unreserved Undesignated fund balance indicates the portion of fund equity which is available for budgeting in future periods. K, Vacation dad Sick Pay 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. Accordingly, the expenditure for vacation is recognized when it is earned. 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 5 years of non-union employment, one fourth of the unused sick leave times the hourly rate at the time of giving notice is paid. 11 CITY OF MONTICELLO NDTES TO FINANCIAL STATEMENTS December 31, 1996 Note 1 Summary of c_ianificant Accounting Policies - Continued K. Vacation and Sick2U - Continued 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. L. Total Columns on Combined Statements Total columns on the combined statements are captioned "Memorandum Only" to indicate that they are presented only to facilitate finan- cial analysis. Data in these columns does not present financial position or results of operations in conformity with generally accepted accounting principles. Neither is such data comparable to a consolidation. Interfund eliminations have not been made in the aggregation of this data. M. Comparative Data Comparative total data for the prior year has been presented in the accompanying financial statements in order to provide an under- standing of changes in the City's financial position and operations. However, comparative (i.e., presentation of prior year totals by fund type) data has not been presented in each of the statements since its inclusion would make the statements unduly complex and difficult to read. Note 2 stewardnhin. Compliance and AccoU t hility A. Drfi it F.nd 9alan s Deficit fund balances as of December 31, 1996, are as follows: Debt Service Funds General Obligation Improvement Bonds Series 1988A $ 8,867 General Obligation Improvement Bonds Series 19908 280.792 5 289.659 Capital project Funds Cardinal Hills IV $ 4,261 WWTP Expansion Project 1,878,659 Pathway Project 719 Klein Farms 12,337 River St. Trk SAN SEW 7.033 S 1.903.009 Deficit Retained Earnings Transportation Fund $ 12,117 Cemetery Fund 947 i 13.064 The debt service fund deficit was accumulated because special assessment revenues haven't been received as anticipated. The deficits in the Capital Project Funds are due to project costs incurred during the preliminary and planning phases. Future bond proceeds or assessment collections are expected to be used for financing the projects. 12 J CITY OF MONTICELLO NOTES TO FINANCIAL STATEMENTS December 31, 1996 Nose -2 stewardship- Compliance and Aeeo�ability - Continued B. Exna of Bxnenditurpa Over Budget Expenditures Over rxnendituran Budget Budget General Fund $ 2,725,856 $ 2,681,475 $ 44,381 Housing 6 Redevelop- ment Authority 460,175 94,317 365,858 Nil rash and Investments Cash balances of City funds are combined (pooledl and invested to the extent available in various investments authorized by state statutes. Each fund's portion of thio pool (or pools) is displayed on the financial s statements as 'Cash and investments". For purposes of identifying risk of investing public funds, the balances and related restrictions are summarized below: A. Deposits - Minnesota statutes require that all deposits with financial institutions must be collateralized in an amount equal to 310% of deposits in excess of FDIC or FSLIC insurance (140% if collateralized with notes secured by first mortgages). The carrying amount of the City's deposits with financial institu- n tiowas $3,491,345 and the bank balance was $3,842,281. The bank balance is categorized as follows: Insured by FDIC or FSLIC insurance $ 1,467,996 Covered by collateral assigned to City and not redeposited in the financial institu- tion furnishing the collateral 2.374.285 Total Bank Balance & 3.842.281 r. i 13 CITY OF MONTICELLO NOTES TO FINANCIAL STATEMENTS December 31, 1996 ' Note 3 rash and Investments - Continued B. Investments - Minnesota State statutes authorize the City to invest in obligations of the U.S. Treasury, agencies and instrumentalities of the United States, shares of investment companies whose only investments are in the aforementioned securities, obligations of the State of Minnesota or its municipalities, bankers' acceptances, futures' contracts, repurchase agreements and commercial paper of the highest quality with a maturity of no longer than 270 days. Investments held by the City at year end are classified as to credit risk as follows: Category 1 - Insured or registered. or securities held by the City's agent in the City's name. Category 2 - Uninsured and unregistered, with securities held by the counter party's trust department or agent in the City's name - Category 3 - Uninsured and unregistered, with securities held by the counter party, or by its trust department or agent but not in the City's name. Carrying Market Cat, ar oro Amount Value 11 Piper Jaffray Money Market 1 $ 1,152 S 1,152 Commercial Paper 1 1,939,231 1,939,231 Smith Barney Money Market 1 8,378 8,378 Minnesota Municipal Money Market Fund 1 562,899 562,899 Lehman Broo. Money Market Fund 1 233 233 Minnesota Municipal Bonds 1 185,313 185,313 U.S. Securities 6 Govern- mental Agency Securities 1 3-283.639 3.302.069 ' Total Investments 98� 0.895 S 5.999.275 Note ?. Prarerty—Taxes Property tax levies are set by the City Council in December of each year, and are certified to the County Auditor for collection in the following year. In Minnesota, counties act as collection agents for all property taxes. Such taxes become a lien on property on January 1 and are recorded as receivables by the City at that date. Real property taxes may be paid by taxpayers in two equal installments on May 15 and October 15. Personal property taxes may be paid on February 28 and June 30, The County provides tax settlements to cities and other taxing districts three times a year. Taxes which remain unpaid at December 31 are classified as delinquent and are not recognized as revenue because they are not known to be available to finance current expenditures. No allowance for uncollectible taxes has been provided because such amounts are not expected to be material. 14 CITY OF MONTICELLO NOTES TO FINANCIAL STATEMENTS December 11, 1996 General fixed assets as of December 31, 1996, are as follows: Beginning Ending Land $ 1,163.123 $ 816,460 $ 1,979,583 Buildings 1,995,889 1,995,889 Equipment 1,795,605 17,273 1,812,878 Other Improvements 7.919.142 40.980 7.960.122 Total S 12.873.759 tj 874.714 S 13.748.422 Note 6 Pension Plans A. n fined Benefit Pension Plana - Statewide All full-time and certain part-time employees of the City of Monticello are covered by defined benefit pension plans administered by the Public Employees Retirement Association of Minnesota (PERA). PERA administers the Public Employees Retirement Fund (PERF) and the Public Employees Police and Fire Fund (PEPFF) which are cost-sharing multiple -employer public employee retirement plans. These plans are established and administered in accordance with Minnesota Statutes, Chapters 353 and 356. PERF members belong to either the Coordinated Plan or the Basic Plan. Coordinated members are covered by Social security and Basic members are not. All new members must participate in the Coordi- nated Plan. The payroll for employees covered by PERF for the year ended December 31, 1996, was $809,180; the City's total payroll was $1,078,547. 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 Statute, and vest after three years of credited service. The defined retirement benefits are based on a member's 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 Coordinated and Basic members. The retiring member receives the higher of step - rate benefit accrual formula (Method 1) or a level accrual formula (Method 2). Under Method 1, the annuity accrual rate for a Basic member is 2 percent of average salary for each of the first 10 years of service and 2.5 percent for each remaining year. For a Coordi- nated member, the annuity accrual rate is 1 percent of average salary for each of the first 10 years and 1.5 percent for each remaining year. Using Method 2, the annuity accrual rate is 2.5 percent of average salary for Basic members and 1.5 percent for Coordinated members. For PEPFF members, the annuity accrual rate is 2.5 percent for each year of service. For PERP members whose 15 CITY OF MONTICELLO NOTES TO FINANCIAL STATEMENTS December 31, 1996 Note 6 Pension Plans - Continued annuity is calculated using Method 1, and for all PEPFF members, a full annuity is available when age plus years of service equal 90. 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 normal 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 avail- able which will reduce the monthly normal annuity amount, because S the/s annuity is 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. Contributions Retruir d and Contributions Made Minnesota Statutes Chapter 353 sets the rates for employer and employee contributions. The City makes annual contributions to the pension plans equal to the amount required by state statutes. According to Minnesota Statutes Chapter 356.215, Subd. 4(g), the date of full funding required for the PERF and the PEPFF is July 1, 2020. As part of the annual actuarial valuation, PERA's actuary determines the sufficiency of the statutory contribution rates towards meeting the required full funding deadline. The actuary compares the actual contribution rates to a "required" contribution rate. Current combined statutory contributions rates and actu- arially required contribution rates for the plans are as follows: Statutory Rates Required Emnlovee E=Iovor Rates PERF (Basic 6 Coordinated Plans) 4.31% 4.60% 9.761 PEPFF 7,60% 11.40% 19.00% 16 CITY OF MONTICELIq NOTES TO FINANCIAL STATEMENTS December 31, 1996 Not, 6 Pension Plans - Continued Total contributions made by the City during fiscal year 1996 were: Percentage of AmouaLz Covered Payroll Employee Mover Employee gmolover PERF $ 34.302 $ 36,301 4.23% 4.48% The City's contribution for the year ended December 31, 1996 to the PERF represented less than one percent of the total contributions required of all participating entities. For the PEPFF, the City was not required to make any contributions for the year ended December 31, 1996. Funding Status and Progress The "pension benefit obligation" is a standardized disclosure measure of the preset"- value of pension benefits, adjusted for the effects of projected salary increases and step -rate benefits, esti- mated to be payable in the future as a result of employee service to date. The measure, which is the actuarial present value of credited projected benefits, is intended to help users assess PERA's funding status on a going -concern basis, assess progress made in accumu- lating sufficient assets to pay benefits when due, and make compari- sons among Public Employees Retirement Systems and among employers. PERA does not make separate measurements of assets and pension benefit obligation for individual employers. The pension benefit obligation as of June 30, 1996, is shown below (in thousands): Total pension benefit obligation $ 6,608,646 $ 1,243,429 Net assets available for benefits, at cost (Market values for PERF . $5,954,697; PEPFF . $1,713,687) 5.702.248 1.592.671 Unfunded (assets in excess of) pension benefit obligation L-226.398 55 () The measurement of the pension benefit obligation is based on an actuarial valuation as of July 1, 1996. Net assets available to pay pension benefits were valued as of June 30, 1996. For the PERF, significant actuarial assumptions used in the calcula- tion of the pension benefit obligation include (a) a rate of return on the investment of present and future assets of 8.5 percent per year, compounded annually, prior to retirement, and 5 percent per year, compounded annually, following retirement; (b) projected salary increases taken from an age related table which incorporates a 5 percent base inflation assumption; (c) payroll growth at 6 percent per year, consisting of 5 percent for inflation and 1 percent due to growth in group size; (d) post-retirement benefit 17 CITY OF MONTICELLO NOTES TO FINANCIAL STATEMENTS December 31, 1996 Continued increases that are accounted for by the 5 percent rate of return assumption following retirement; and (e) mortality rates based on the 1983 Group Annuity Mortality Table set forward one year for retired members and set back five years for each active member. Actuarial assumptions used in the calculation of the PEPFF include (a) a rate of return on the investment of present and future assets of 8.5 percent per year, compounded annually, prior to retirement, and 5 percent per year, compounded annually, following retirement; (b) projected salary increases of 6.5 percent per year, compounded annually, attributable to the effects of inflation; (c) post- retirement increases that are accounted for by the 5 percent rate of return assumption following retirement; and (d) mortality rates based on the 1971 Group Annuity Mortality Table projected to 1984 for males and females. Changan in Actuarial Assumptions Since the July 1, 1995 actuarial valuation, there were no changes in actuarial assumptions of the PERF and the PEPFF which impacted funding costs. Potential changes in the actuarial assumptions used for the PEPFF may be made in the future. Results of an experience study for the fund during the four-year period ending June 30, 1994, disclosed (a) retirees are living longer; (b) the expected active member death rate is declining; (c) the trend toward earlier retirement continues; and (d) the pattern of salary increases varies substan- tially by ages, with a strong merit and seniority component evident at the younger ages. Based on these results, PERA will soon consider revising the actuarial assumptions for retirement, age, mortality, payroll growth and individual salary increases. These changes, if adopted within fiscal year 1997, will significantly impact the July 1, 1997 actuarial valuation of the PEPFF. Changes in Benefit Provisions The 1996 legislative session did not include any benefit improve- ments which would impact funding coats for the PERP and PEPFF. Ten -Year Historical Trend Information Ten-year historical trend information is presented in PERA's Compre- hensive Annual Financial Report for the year ended June 30, 1996. This infoi-nation is useful in assessing the pension plan's accumula- tion of sufficient assets to pay pension benefits as they become due. Related Party Investments As of June 30, 1996, and for the fiscal year then ended, PERA held no securities issued by the City or other related parties. 18 CITY OF MONTICELLO NOTES TO FINANCIAL STATEMENTS December 31, 1996 Note 6 Pension Plano - Continued �- B. may of Monticello Fire ,Relief Association Plan Description The City contributes to the City of Monticello Fire Relief Associa- tion (Association), a single employer retirement system that acts as a common investment manager and administrator for the City's fire- fighters. All active members of the fire department are members of the Association. Upon approval by the Board of Trustees, lump sum retirement benefits are either paid or deferred as follows: (a) Benefits accrue and vest to members based on $1,375 per year of active service in the fire department and Association with 100% vesting at twenty years. _ (b) There is no maximum retirement benefit. (c) Members retiring with less than ten years of service forfeit their accrued benefits. (d) Members who separate from service and have at least ten years of active service and membership but are less than 50 years of age are entitled to a deferred service pension payable upon reaching the age of 50. '. The Association also provides death benefits, whereby upon approval of application, the beneficiaries of each deceased active member wouldreceive $ 1,375 per year of service. �• The City passes through state aids allocated to the plan in accordance with enabling state statutes. Related Party Investments During 1996 and as of December 31, 1996, the Association held no securities issued by the City or other related parties. Funding Status and Progress The Association provides benefits in lump sum as allowed by state statutes and is not required to have an actuarial study to determine its unfunded pension benefit obligation. The net assets available for benefits and the unfunded pension benefit obligation information is unavailable. contributions gpouired and Mad Prior to August 1 of each year, the Association must certify to the City Clerk the amount of municipal support required in the following ' year. The City's minimum obligation is the financial requirement for the succeeding year less anticipated state aids and interest earnings. Any additional payments by the City are used to amortize the unfunded liability of the Association. The City made no contributions to the Association in 1996. 19 CITY OF MONTICELLO NOTES TO FINANCIAL STATEMENTS December 31, 1996 Note 6 Pension Plane - Continued i 'ren -Year Historical Trend Information Ten-year historical trend information related to the pension plan is not maintained by the Association. The City offers its employees a deferred compensation plan created in accordance with Internal Revenue Code Section 457. The plan, available to all city employees, permits them to defer a portion of their salary until future years. The deferred compensation is not available to employees until termination, retirement, death or an unforeseeable emergency. All amounts of compensation deferred under the plan, all property and rights purchased with those amounts and all income attributable to those amounts, property or rights are (until paid or made available to the employee or other beneficiary) solely the property and rights of the City (without being restricted to the provisions of benefits under the plan), subject only to the claims of the City's general creditors. Partici- pants' rights under the pian are equal to those of general creditors of the City in an amount equal to the fair market value of the deferred account for each participant. The Flan is entirely funded by contributions from electing employees. No contribution is provided by the City. Assets are held in the various investment funds offered by the Companies administrating the plans. The total assets in the plan as of December 31, 1996 were $373,880. The City foreclosed on a piece of property due to large delinquencies in assessments. A decision was made to develop the property and market late. Bond proceeds of $419,094 were utilized to improve the property. The total costs to develop the property are expected to be approximately $450,000. Approximately 30 lots are expected to be sold in the $25,000 - $30,000 range. Financing terms are being offered to prospective purchasers as reflected in Note 14. 20 CITY OF MONTICELLO NOTES TO FINANCIAL STATEMENTS December 31, 1996 221PL-2 Chanes in Long -Term The following is a Debt summary of long-term debt transactions for the year ended December 31, 1996: 155,000 Feb. 1997 Payable 25,000 Payable Feb. Beginning of Year Additions Payments End Year General obligation Feb. 2000 of bonds $ 1,675,000 $ 590,000 $ 845,000 $ 1,420,000 Special assessment 95,000 75,000 Feb. debt with govern- 6.51 60,000 mental commitments 7,075,000 1,030,000 1,045,000 7,060,000 General obligation tax increment bonds 1.495.000 450.000 660.000 1.285.000 TOTAL 510.245.000 5 ]..070.000 5 2.550.000 5 9.765.000 Bonds and notes payable at December 31, 1996, are comprised of the following individual issues: initial Average Dencriytion Amount Maturity Issued Date Interest Rate Outstanding Pr1nC12a1 General Obligation Bonds: 1988B Improvement Bonds 1993A Refunding Bonds 1996 Refunding Bonds Total General Obliga- tion Bonds General Obligation Tax Increment Bonds: 1985 Tax Increment Bonds 1907B Tax Increment Bonds 1989A Tax Increment Bonds 1990D Tax Increment Bonds 1992 Tax Increment Bonds 1992D Tax Increment Bonds 19968 Tax Increment Refund- ing Bonds Total General Obligation Tax Increment Bonds 1,100,000 Feb. 2004 6.99431 $ 725,000 535,000 Feb. 1997 3.96731 105,000 590,000 Feb. 2002 4.88111 590.000 350,000 Feb. 2006 8.28931 $ 255,000 155,000 Feb. 1997 8.79991 25,000 260,000 Feb. 2007 8.87081 225,000 305,000 Feb. 2000 8.99281 175,000 120,000 Feb. 2002 6.51 95,000 75,000 Feb. 2002 6.51 60,000 450,000 Feb. 2000 4.69831 450.000 21 CITY OF MONTICELLO NOTES TO FINANCIAL STATEMENTS December 31, 1996 Note 9 Cha_naes in Lona -Term Debt Special Assessments Bonds: 1977 Sewer, water and Street Bonds 19898 Improvement Bonds 1990C Improvement Bonds 1991A Improvement Bonds 1992A Improvement Bonds 1994A Refunding Bonds 1995A Improvement Bonds 1996A Improvement Bonds Total Special Assessment Bonds Continued 3,470,000 Feb. 1999 245,000 Feb. 2000 250,000 Feb. 2002 515,000 Feb. 1999 705,000 Feb. 2003 965,000 Feb. 2004 3,890,000 Feb. 2006 1,030,000 Feb. 2007 Outstanding Principal 5.2100% $ 180,000 6.6118% 110,000 6.75062% 165,000 5.72651 215,000 5.2525% 505,000 4.2312% 965,000 4.9647% 3,890,000 5.1503% 1.030.000 The annual requirements to amortize all long-term debt outstanding as of December 31, 1996, including interest of $2,147,056 are as follows: 2002 and thereafter The legal debt margin of the City is approximately $8,545,897 From time to time, the City has issued Industrial Revenue Bonds and other similar type Revenue Bonds to provide financial assistance to private - sector entities for the acquisition and construction of industrial and commercial 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. Neither the City, the State nor any political subdivision thereof is obligated in any manner for repayment of the bonds. Accordingly, the bonds are not reported as liabilities in the accompanying financial statements. The issues are as follows: Original leave Date C= r ial Business TgJM L Milli Bim= 01/30/73 Northern States Power 30 yrs Po lucion Control Bonds $5.000,000 $4,000,000 04/04/73 Northern States Power 30 yrs Pollution control Bonds $2,600,000 $1,500,000 07/28/75 Northern States Power 28 yrs Pollution Control Bonds $3,500,000 $3,500,000 04/01/88 Clow Stamping 22 yrs Ind. Dev. Rev. Bonds $ 950,000 $ 635,000 09/26/84 Fulfillment Systeme Inc. 15 yrs Corsa. Dev. Rev. Bonds $ 475,000 $ 155,000 12/23/85 Raindance Partnership 25 yrs Comm. Dev. Rev. Bonds $1,075,000 $ 915,812 22 1997 $ 1,666,291 1998 1,790,966 1999 1,751,421 2000 1,523,728 2001 1,332,982 2002 and thereafter The legal debt margin of the City is approximately $8,545,897 From time to time, the City has issued Industrial Revenue Bonds and other similar type Revenue Bonds to provide financial assistance to private - sector entities for the acquisition and construction of industrial and commercial 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. Neither the City, the State nor any political subdivision thereof is obligated in any manner for repayment of the bonds. Accordingly, the bonds are not reported as liabilities in the accompanying financial statements. The issues are as follows: Original leave Date C= r ial Business TgJM L Milli Bim= 01/30/73 Northern States Power 30 yrs Po lucion Control Bonds $5.000,000 $4,000,000 04/04/73 Northern States Power 30 yrs Pollution control Bonds $2,600,000 $1,500,000 07/28/75 Northern States Power 28 yrs Pollution Control Bonds $3,500,000 $3,500,000 04/01/88 Clow Stamping 22 yrs Ind. Dev. Rev. Bonds $ 950,000 $ 635,000 09/26/84 Fulfillment Systeme Inc. 15 yrs Corsa. Dev. Rev. Bonds $ 475,000 $ 155,000 12/23/85 Raindance Partnership 25 yrs Comm. Dev. Rev. Bonds $1,075,000 $ 915,812 22 CITY OF MONTICELLO NOTES TO FINANCIAL STATEMENTS December 31, 1996 dote 10 Interfund Receivables nd Pdy-h9 les Capital Outlay Revolving - Due from RRA Fund $ 8,000 Economic Development Authority - Due from Name of District Liquor Fund 70,000 Economic Development Authority - Due from Economic Economic Recovery Grant 100.000 S 178.000 Note 11 Fund Equity The following fund balances have been designated or reserved as of December 31, 1996: 1990 Special Revenue Funds Base Tax Capacity Economic Recovery Grant $ 10,689 Reserved for non-current loans receivable $ 71,970 Urban Development Action Grant Captured Tax Capacity Reserved for non-current loans receivable 77,372 Economic Development Authority Reserved for non-current loans receivable 466,881 Capital Outlay Revolving 41,985 Reserved for fixed assets held for resale 91,727 Debt Service Funds Taxing Districts Future debt retirement 3,578,516 Capital Projects Funds 560,000 Future capital expenditures (878,977) Reserved for non-current loans receivable 75,805 General Fund 245,000 Designated for working capital 1,438,100 Designated for contingencies 287,620 Reserved for non-current loans receivable 20,182 Note 12 Tax Iner m nt Fin n Die ri s Metcalf - Name of District Kmart al -1 Larson p2 Economic Re - Type of District: Development Develonment Year Eatablished: 1990 1983 Base Tax Capacity S 2,484 $ 10,689 Current Tax Capacity 129,286 52,674 Captured Tax Capacity 126,802 41,985 Retained By Authority 126,802 41,985 Shared with Other Taxing Districts -0- -0- Total Bonds Issued 560,000 260,000 Total Loans Incurred 32,000 Amounts Redeemed 245,000 67,000 Outstanding Bonds Loans and Obli- gations 12/31/96 Raindance Const. 5 a5 85 Re- Re- Deve14!?= nsy loom n 1984 1985 S 2,238 $ 185 69.008 61,468 66,770 61,283 66,770 61,283 -0- -0- 365,000 350,000 230,000 95,000 315,000 225,000 135,000 255,000 23 NAWCO 07 Economic 1987 S 1,721 68,891 65,170 65,170 160,000 155,000 150,000 165,000 CITY OF MONTICELLO NOTES TO FINANCIAL STATEMENTS December 31. 1996 Note 12 Tax increment Finance Dist,ict, - Continued Name of District NSP 10 T.toer B9 Remmele 110 Marcie III Armlax 112 Suburban 114 Std. Iron all Net. Can. 815 Economic Economic Economic Economic Economic Economic Economic Economic Type of District; Development nevelonm r Develee enc p vee to Zt nevel„oT nt Develooment Develoom nt nevelooment Year Established: 1989 1990 1990 1990 1991 1992 1993 1993 Base Tax Capacity $ 2,262 S 1,983 S 2.252 $ 339 S 1,260 $ 51 $ 2,095 $ 831 Current Tex Capacity 8,970 32,900 45.729 5.614 25,853 15,130 10,174 12,651 Captured Tax Capacity 6,708 30,917 43.477 5,495 24,593 15,079 68,079 11,820 Retained By Authority 6,708 30,917 43,477 5,495 24,593 15,079 68,079 11,820 Shared with Other Taxing Districts •0- -0- -0• -0- -0- -0- -0- -0- Total Development Agreement Obligations 25,000 17,500 428,173 67,413 Total Bonds Issued 140,000 165.000 120,000 75.000 -0- -0- Total Loans Incurred 23,000 Amounts Redeemed 15,000 90.000 70.000 12,500 25,000 15,000 53,198 14,053 outstanding Bonds Loan. and Obliga- tions 12/31/96 8,000 75,000 95,000 5,000 95.000 60,000 174,975 52,560 Nisalesippi Prairie lake Name of District POlvicent 416 FAvmar 217 Rivermill alb Shores 419 Neat 120 T001 421 Economic Economic Soils Re- EconOmis Type of District: Development Development Condition 11 ... lna DD 1--t Develop ant Year Established: 1994 1994 1994 1995 1996 1996 Bane Tax Capacity S 693 S 46 S 1.090 S 5.096 $ 3.000 $ 633 Current Tex Capacity Captured Tax Capacity 693 20.886 46 1.090 5,096 3,000 633 Retained By Authority 20.886 She red with Other Taxing Districts Total Development Agreement Obligations Total Bonds Issued 102,000 325.830 220,000 110,000 Total I.oenn Incurred 801000 75.000 Amounts Redeemed 32,500 Outstanding Bond. Loena and Obliga. tions 12/]1/96 80,000 7S.000 102,000 325.830 187,500 110.000 Note 13 Semnent Information The City maintains five proprietary funds which account for transportation, sewer utilities, water utilities, cemetery and a municipal liquor store. Segment information for the year ended December 31, 1996, is as follows: S. S water Wand L1ever nmd r Tranepor• tat in Fun" Cemetery ESmd Total Proprietary Funds Operating revenues $ 597,979 $ 254,909 S 450,753 S 27,114 $ 4,010 S 1.334,764 Operating expenses be- fore depreciation and amortization Depreciation end amorti- 542,480 198,951 203,022 66,349 4,957 1,016,559 zeat 624.231 211.045 13.711 26-762 Operrating income floss S 1568,7751 S 1155, $ 2]3,220 S (39,235) $ 19471 $ 291,443 Otherr!vinYlB 42.146 10.224 224 ]6.268 27 3�6 96.174 Net Income Ilossl 5 1526_]89) 5 1144 861) 5 249.48R 5 1801) S 1947) 5 ]87.617 Capital Contributions S 1.2BS.126 S 1.000.205 $ 0 5 2.285.531 Net working Capital 5 ]41.520 $_ 271-]63 S 49p ya S 112.117) 5 19471 S 1-056,598 Total Assets S 7.]72.911 55 3 5 727.412 �» S 0 511.979.795 Total Equity (Deficit) 5 -miss= 5 1�1] it73 5 1947) 511. 742.4 s9 24 CITY OF MONTICELLO NOTES TO FINANCIAL STATEMENTS December 31, 1996 Note 14 1Bpa-Term P ->;vables A long-term receivable of $77,372 is shown in the Urban Development Action Grant Fund. This receivable resulted from an economic development grant that the City received in the amount of $243,500. The City loaned $235,315 to a local business with interest being accrued on the loan in accordance with the grant agreement. The City keeps all of the repayments which are to be used to finance other development in accordance with the grant agreement. The Greater Monticello Enterprise Fund (GMEF), a revolving loan fund, was established for the purpose of supplementing conventional financing sources for existing and new businesses within Monticello. To date, several commercial projects have utilized the funding. The GMEF loaned $88,000 to a local industrial business in July of 1990. The loan requires monthly payments of $736.07 including interest at 81 through July 13, 1997, at which time the remaining balance shall be fully due and payable. At December 31, 1996, the balance was $73,115. In November 1992, the GMEF loaned $85,000 to finance a commercial project. The loan requires monthly payments of $1,241.73 including interest at 61 through November of 1999. At December 31, 1996, the balance was $19,549. In October 1992, a loan of $50,000 was made to a local business. The loan requires monthly payments of $316.32 including interest at 4.51 through November of 2012. At December 31, 1996, the balance was $43,184. In April 1993, the GMEF loaned $42,500 to a local business. The loan requires monthly payments of $270.03 including interest at 4.5% through May 1, 1997, at which time the entire remaining balance shall be fully due and payable. At December 31, 1996 the balance was $37,433. During 1994, the balance of a $170,000 loan was distributed to Aroplax Corporation. The Grant/Loan Proceeds were the result of a Small Cities Economic Recovery Grant thru the State Department of Economic Development. The loan requires monthly payments of $2,483.45 including interest at 6% through August 1999. The City will be allowed to keep the first $100,000 of principal plus interest that is repaid, with the balance of the payments being reimbursed to the State. The amounts retained by the City will be used for the B.D.A. Revolving Loan Program and will be loaned out in the future for job creation. At December 31, 1996, the City has received $121,688 in principal and interest and the loan balance was $71,970. In July of 1994, a loan of $75,000 was made to a local commercial business. The loan requires monthly payments of $795.49 including interest at 5% through June 1, 2001, at which time the entire remaining balance shall be fully due and payable. At December 31, 1996, the balance was $59,025. 25 CITY OF MONTICELLO NOTES TO FINANCIAL STATEMENTS December 31, 1996 Note 14 lona-Term Receivables - Continued On November 21, 1995, a loan of $50,000 was made to a local commercial business. The loan requires monthly payments of $380.18 including interest at 6.75% for five years. A balloon payment is due at that time. At December 31, 1996, the balance was $48,670. In lieu of Local Government Aid the City lost due to loans to businesses, the City is charging these businesses $34,575, which will be received over the next nine years. The receivable requires two yearly payments of $2,945.91 including interest at 8.0% through May 2001. At December 31, 1996 the balance was $20,182. In May of 1996, a loan of $100,000 was made to a local business. The loan requires 60 monthly payments of $760.36 including interest at 6.75%, at the end of which time a balloon payment is due. The balance at December 31, 1996 was $98,591. In September of 1996, a loan of $170,000 was made to a local business. The loan requires 84 monthly payments of $1,031.01 including interest at 6.25%. The balance at December 31, 1996 was $167,313. In conjunction with the Eastwood Knoll Project, the City sold three lots on contracts. The first contract wan dated September 22, 1995 with an original balance of $25,956. The contract requires monthly payments of $172.68 including interest at 7.01 for three years at the end of which time a balloon payment is due. The second contract originated November 28, 1995, in the amount of $25,520. The note requires 23 monthly payments of $175.00 including interest at 8.0% at the end of which time a balloon payment is due. The third contract originated February of 1996 in the amount of $25.956. The note requires 120 monthly payments of $308.10 including interest at 7.5%. The City participates in the League of Minnesota Cities Insurance Trust (LMCIT) property and liability insurance program, a joint self-insurance plan designed and administered by American Business Risk Services and structured to operate through local insurance agents. Approximately 140 cities currently participate in the program. The City has the following coverages with L4CIT: a basic package of property, inland marine, automotive physical damage and liability; comprehensive general liability; public officials errors and omissions; umbrella liability; boiler and machinery; and workers compensation. The City pays an annual premium to LMCIT, which in turns 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 `l CITY OF MONTICELLO NOTES TO FINANCIAL STATEMENTS December 31, 1996 Kate is Commitments and Cont'naenciea - Continued Continued return to LMCIT of a share of the reinsurers' portion of the premium if the lose 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. The City continues to carry commercial insurance for its employee health and accident insurance. Settled claims resulting from these risks have not exceeded commercial insurance coverage in any of the past three calendar years. Wastewater Treatment Plant Subsequent to year end, the City entered into a contract for a major expansion of the wastewater treatment plant. The total cost of the project is expected to be in excess of fourteen million dollars. The project will be financed by a Public Facilities Authority loan granted by the Minnesota Department of Trade and Economic Development. 27 CITY OF MONTICELLO Statement A-1 GENERAL FUND STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE - BUDGET (GAAP BASIS) AND ACTUAL 1 For The Year Ended December 31, 1996 With Comparative Actual Amounts For The Year Ended December 31, 1995 19941 1995 P-ia.r Actual Actual Revenues General property taxes $ 2,063,899 $ 2,076,105 $ 11800,279 Licenses and permits 143,275 227,048 202,519 Fines and penalties 205 Animal impoundment fees 15,000 20,372 18,730 Intergovernmental Revenue HACA 179,931 179,931 190,031 Fire department aid 32,685 43,249 33,234 Police aid 22,000 20,946 25,072 State highway aid 40,000 65,890 77,997 Recycling incentive 8,000 14,345 13,557 other grants 350 4,935 9,310 Deputy registrar fees 100,000 106,854 108,113 Other Income Recycling income 12,000 16,946 25.709 Interest income 62,060 153,128 127,278 Renta 11,200 9,240 18,161 Miscellaneous income 16,575 128,601 153,331 Refunds and reimbursements 14,000 70,890 46,685 Township contract 59,600 60.094 60.477 Total Revenues S 2.780,575 S 3.198.574 S 2.910.688 Q F.indi �r s Mayor and Council Salaries $ 24,900 $ 23,783 $ 23,783 Other 5.325 5.243 6.027 Total Mayor and Council ^_ 30,225 S 29.026 S 28.810 Administration Salaries and employee benefits $ 188,465 $ 197,285 $ 182.292 Supplies 12,400 9,570 14,515 Other 36.500 29.415 27.254 Total Administration S 237.36S S 236.270 5 224.061 Elections S 6.125 Finance Salaries and employee benefits $ 96,620 S 92,987 $ 88.319 Other 2.700 4.680 3.186 Total Finance S 99.320 S 97.667 S 91.505 Computer S 38.020 S 35.283 S 21 816 Audit S 13.500 S 10.000 S 10.760 Legal S 27.300 S 26.144 S 22.466 Insurance S 65.000 S 59.628 S 57.776 Planning and Zoning Salaries and employee benefits $ 52,460 5 61,495 $ 58,453 Professional services 15,500 25,794 16,039 Other 4.975 5,75} 5.831 Total Planning and Zoning S 72.915 S 92.642 a 28 CITY OF MONTICELL40 Statement A-1 (continued) GENERAL FUND STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE - BUDGET (GAAP BASIS) AND ACTUAL For The Year Ended December 31, 1996 With Comparative Actual Amounts For The Year Ended December 31, 1995 Exnendituren - Continued Deputy Registrar Salaries and employee benefits Other Total Deputy Registrar City Hall Salaries and employee benefits Utilities Capital outlay Other Total City Hall Law Enforcement Fire Department Salaries and retirement henefits Capital outlay Other Total Fire Department Civil Defense Salaries and employee benefits Other Total Civil Defense Animal Control Public Works - Administration and Engineering Salaries and employee benefits Professional services Other Total Public works - Admini- stration and Engineering Public works - Streets and Alleys Salaries and employee benefits Supplies Capital outlay Other Total Public works - Streets and Alleys Public works - Snow and Ice Salaries and employee benefits Other Total Public Works - Snow and Ice Public Works - Inspections Public works - Street Lighting Public Works - Shop and Garage Refuse Collection 19901 1995 Budget Actual Actual $ 87,795 $ 83,083 $ 70,338 7.100 10.852 7.231 S 94.895 $ 93 935 S 77.569 $ 5,700 $ 7,212 $ 7,201 11,200 11,768 10,987 7,025 23,017 1,632 30.775 9 p5 10.206 S 54.700 2---LI-Lu S 50.026 5 302.810 S 302.808 5 293.632 $ 72,280 $ 93,487 $ 73,527 7,000 7,557 10,331 54.195 5.6 B32 63.654 5 133.475 5 159.878 S 147.512 $ 7,140 $ 7,031 $ 6.800 1.600 1 6¢M 96_9 2--Li-t0 10.729 S 7.769 S 35.500 $ 11.699 1 31.176 $ 90,650 $ 86.946 $ 71,612 18,000 87,437 94,031 7.610 10.613 10.102 S 116.260 S 197 99fi S 175.745 $ 172,780 $ 209,308 $ 161,724 45,400 51,975 42,455 118,750 99,305 43,083 8.500 5.701 8.319 S 345.430 S 366.289 S 255.581 $ 5,610 $ 10,716 $ 4,179 22.200 A9 174 9.662 $_ 27.810 S 42.340 S 65.750 S 73.350 S 286.270 29 CITY OF MONTICELLO Statement A-1 (Continued) GENERAL FUND STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE - BUDGET (GAAP BASIS) AND ACTUAL For The Year Ended December 31, 1996 With Comparative Actual Amounts For The Year Ended December 31, 1995 Expenditures - Continued Senior Citizens/Museum Salaries and employee benefits Other Total Senior Citizens/Museum YMCA/Community Education Parke and Recreation/Cemetery Salaries and employee benefits Capital outlay Other Total Parke and Recreation/ Cemetery Economic Development Building Official - Inspections Severance Benefits Assessment Total Expenditures Excess of Revenues over Expenditures Transfers (out) Excess (Deficiency) of Revenues and Other Sources over Expen- ditures and Other Uses FUND BALANCE AT BEGINNING OF YEAR Prior Period Adjustment FUND BALANCE AT END OF YEAR 1996 1995 Budget Actual Actual $ 1,690 $ 1,333 $ 1,684 55.050 38.566 49.792 5 56.740 S 39.899 1 -ILL -t76 S 25.000 $ 25.000 S 25.000 $ 121,550 $ 77,809 $ 91,638 21,500 11,185 40,894 62.430 49.]81 40.413 5 205.480 S 138.375 S 172.945 S 37.770 S 31.434 S 33 930 S 156.240 S 106.101 S 87.239 5 9.500 $ 7 333 S 10.633 5 13.625 L_15 -Au L__12_648 5 2.681.475 S 2.725.856 S 2.401.695 $ 99, 1CO $ 472,718 S 508.991 (99.100) (178.650) �n S 294,068 $ 508,993 30 2,467,354 1.458.361 6 131 S 2.767.55] S 2. q CITY OF MONTICELLO SPECIAL REVENUE FUNDS COMBINING BALANCE SHEET December 31, 1996 With Comparative Totals at December 31, 1995 ASSFTS Cash and investments Receivables Special assessments - deferred Special assessments - delinquent Accounts (net of allowance for esti- mated uncollectibles) Due from other funds Prepaid expenses Land held for resale Longterm receivable TOTAL ASSETS LIABILITIES AND FUND BALANCFS Liabilities Accounts payable 6 contracts payable Accrued expenses Due to other funds Deferred revenue Total Liabilities Fund balances Reserved for noncurrent loans receivable Reserved for fixed assets held for resale Unrenerved - undenignated Total Fund Balances TOTAL LIABILITIES AND FUND BALANCES Capital Shade Orderly Outlay Tree A ... xrion Revolving Lybrary S 163,449 $ 12,556 $ 961,274 S 9.178 968 121,795 30.437 570 41 9.730 75 8,000 226 91,727 5 164-995 t 12.597 S 1.222.961 L-9.= 21 $ 89 S 690 S 91,727 164-006 5 12-597 970.9915 S 8.789 t 164-006 5 12.597 4 1.062.642 S R.7R9 31 Statement 8-1 I Central Mousing and Urban Economic Minnesota Economic Storm Redevelopment Authority Development Action Grant Development Authority_ water Sewer Improvement Impravemtnt Initiative Fund Recovery Grant Sever TOTALS Accena _ 199fi 1995 I_ S 287,034 $ 46,436 $ 382,482 5 593,123 S 596,218 S 310 $ 139,916 $ 14,118 $ 3,006,096 $ 2,246,094 122,763 148,621 �. 1,751 32,186 29,793 928 2,937 38,700 52,989 30,714 170,000 178,000 161,000 226 269 77.372 466.883 71.970 91,727 616.223 146,825 521.399 �- 5 2P7.962 5 123.808 5 7.0�9�363 5 39b. Ob0 S fi36.b69 5_ 310 S 211.888 5 14.118 s 4�1� a$�1 5 3.285.575 $ 19,592 S 20,392 $ 4,144 293 293 238 _ 8,000 S 27.885 S 1.751 S 1.751 $ 100,000 108,000 162.951 S 291,916 S 111,000 187.914 5 100.000 303. 29b I_ $ 77,372 $ 466,881 $ 71,970 $ 616,223 $ $21,399 l_ S 260.077 S ,260.077 4 76fl7�62 46.436 S 123.808 S 123.POB 552.482 S 1.019.363 < 1 0+9 761 S 396.060 S 634.918 5 396.060 S 634.918 5 345. Ob0 SS 616 664664 S 310 5 310 6 39.918 91,727 S 14.118 3-100.626 S 14.118 S 3.808_S76 S S 14.118 S 4.100.212 S 146,825 2,314 -OSS 4 121.888 � 211.P8B 2,982-274 3286. S7S 5 310 32 CITY OF MONTICELLO SPECIAL REVENUE FUNDS COMBINING STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES For The Year Ended December 31, 1996 With Comparative Totals For The Year Ended December 31, 1995 Capital Shade Orderly Outlay Ttee Annexation Revolving Library Revenues Taxes S 12,154 S 1,363 S 281,082 $ 30,983 Intergovernmental 1,423 106 25.803 Charges for service. Miscellaneous 4,800 9.785 1,907 Interest 9.476 698 46,215 Collections on assessment. 37.592 Total Revenues a 27.453 5 .2.167 S 400.467 _ 32.990 Pxnenditureh Public safety $ 346 Parke and recreation $ )1,764 General government $ 11,773 Community development Debt servrce Capital projects S 94-259 Total Expenditures S 11.773 S 146 S 44.259 S 31.764 Excess (Deficiency) of Revenues over Expenditures $ 16,080 $ 1,821 $ 356,208 $ 1,126 Other Financing Sources (Ones) Tranafers in (out) (23-729) Excess (Deficiency) of Revenues and Other Sources Over Expen- ditures and Other Uses 5 16,080 $ 1,821 $ 332,479 S 1,126 Fund balance$ at beginning of year 147,926 10,776 730,163 13,794 Prior Period Adjustment _ (6.131) FUND BALANCES AT END OF YEAR169.005 ^� 12.597 5 1.062.642 S 9.789 33 Housing and Urban Economic Redevelopment Development Development Authority Action Grant Authority S 497,852 1,614 5,000 $ 3.008 17,007 $ 15,446 39,749 $ 521.473 S 15.446 S 43. SS7 $ 460,175 $ 120 S 460.175 S 120 $ 61,298 $ 15,446 $ 43,437 . M6. 200) (150.000) 290.000 $ (74.902) $ 4134,5541 $ 333,437 334,979 258,362 685,926 L --2A0.= S 127.808 t 11 0a6t Water Sewer Imorovement Improvement S $9,969 $ 325,754 21,346 30,871 S 111.315 356.625 5 13.9GI S 13.951 S 97,364 5 356,625 (75.000) S 97,364 $ 281,625 298,696 353,293 34 Statement 8-2 Central Minnesota Economic Storm Initiative 81xnd Recovery Qrant Sever Access 1996 TGTA1.-4 1995 S 023,434 S 690,565 28,946 51,008 $ 13,520 434,243 310,531 $ 130 $ 1,195 21,625 87,335 12,509 598 S 193,915 37.582 S 164,068 41.2BB 1.539.745 1.544.795 S 136 S 11.704 S 14.118 $ 146 S 28,190 31,764 25,098 11,773 13,240 460,295 186,918 58.210 562.388 S 3,538 241.147 498.131 $ 130 S 13,704 $ 14,118 $ 977,357 $ 1,046,664 $ 130 (50.000) $ (36,296) S 14,118 $ (144.929) 832,428 S (571.619) 474,845 180 5 314 148.184 S 14.128 S 2,962,279 t6.1311 $ 2,507,434 2.982.279 � 1i 1.888 3571, CITY OP MONTICELLO Statement B-3 SHADE TREE FUND STATEMENT OP REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE - BUDGET (GAAP BASIS) AND ACTUAL For The Year Ended December 31, 1996 With Comparative Actual Amounts For The Year Ended December 31, 1995 Revenues Property taxes Intergovernmental Tree removal and replacement Interest income Total Revenues Frffnditures Salarias and employee benefits Contracted services Supplies Other Total Expenditures Excess of Revenues over Expenditures Beginning Fund Balance ENDING FUND BALANCE 1996 1995 $ 12,038 $ 12,154 $ 23,460 1,097 1,423 2,564 3,550 4,800 760 3,700 9,476 8.678 S 20.385 S 27,853 5 35.462 $ 8,410 $ 8,322 $ 4,595 10,000 1,211 7,312 900 391 166 1.075 1.849 1,167 S 20 16S S 11, 77A S 13-240 35 .,. _6 $ 16,080 $ 22,222 147,926 125-704 S 164.006 S 141.926 CITY OF MONTICELLO Statement B-4 ORDERLY ANNEXATION FUND STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FOND BALANCE - BUDGET (GAAP BASIS) AND ACTUAL For The Year Ended December 31, 1996 With Comparative Actual Amounts For The Year Ended December 31, 1995 Revenues Property taxes Intergovernmental Interest income Total Revenues 94Q,pndi +r Salaries - board members and secretary Other Aid to other governments Total Expenditures Excess of Revenues over Expenditures Beginning Fund Balance ENDING FUND BALANCE 1996 1995 Budget _ Actual Actual $ 1,196 $ 1,363 $ 26,590 254 106 3.078 250 698 45,6E $ 1.700 S 2.167 S 30.224 $ 11100 $ 325 $ 635 600 21 55 27. SOD $ 1.7D0 S 346 S 28.190 ..._ n $ 1,821 10 L S 12i 97 36 $ 2,034 CITY OF MONTICELLO Statement B-5 CAPITAL OUTLAY REVOLVING FUND STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE - BUDGET (GAAP BASIS) AND ACTUAL For The Year Ended December 31, 1996 with Comparative Actual Amounts For The Year Ended December 31, 1995 Revenues Property taxes Intergovernmental Interest income Collections on assessments Other Total Revenues Fr9nnd&L man Capital improvements Other Total Expenditures Excess (Deficiency) of Revenues over Expenditures Other Financing Sources (Uses) Transfers out Excess (Deficiency) of Revenues over Expenditures and Other Financing Sources (Uses) Beginning Fund Balance ENDING FUND BALANCE 1996 1995 $ 281,905 $ 281,082 $ 394,878 25,457 25,803 43,584 21,000 46,215 34,766 34,665 37,582 41, 2BB 12.000 9.7 u 50.669 S 375.027 5 400.467 S 565.185 $ 607,362 $ 44,259 $ 200,498 3.600 S 610.962 S 44.259 S 200.498 S (235,935) $ 356,208 $ 364,687 L_.(&3§.935) $ 332,479 $ 121,518 730.163 608 646 S 1.062.642 55 7 37 CITY OF MONTICELLO Statement 8-6 LIBRARY FUND STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE - BUDGET (GAAP BASIS) AND ACTUAL For The Year Ended December 31, 1996 With Comparative Actual Amounts For The Year Ended December 31, 1995 Revenues Property taxes Other revenue Total Revenues gApendi[ures Saidiles and e^ri nyne benefits Supplies Professional services utilities Insurance Repairs and maintenance Other Capital outlay Total Expenditures Excess (Deficiency) of Revenues over Expenditures Beginning Fund Balance Prior Period Adjustment ENDING FUND BALANCE 1996 Budge[ Actual 1995 Actual $ 31,095 $ 1.200 30,983 1.907 $ 30,776 1.641 S 32.417 32.890 S 32.295 S $ 5,700 $ 6,194 $ 294 i"/!"i .,3^6 1,529 9,325 a, 569 8,640 8,300 7,236 7,390 1,370 1,297 1,282 3,375 1,067 387 1,475 1,140 1,231 1.000 4. 95�l 4.345 S 32.295 S ]1.764 6 25 099 n $ 1,126 $ 7,319 38 13,794 6,475 (6 111) 8.789 S 13.794 CITY OF MONTICSLLO Statement B-7 HOUSING AND REDEVELOPKENT AUTHORITY FUND STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE - BUDGET (GAAP BASIS) AND ACTUAL For The Year Ended December 31, 1996 With Comparative Actual Amounts For The Year Ended December 31, 1995 Revenues Taxes Intergovernmental Interest income Other Total Revenues Exnenditures Land acquisitions Salaries and employee benefits Legal and professional fees Interest Other Total Expenditures Excess of Revenues over Expenditures O har Finar,e ing Sourees (Uses) Transfers in Transfers out Total Other Financing Sources (Uses) Excess of Revenues and Other Sources over Expenditures and Other Uses Beginning Fund Balance ENDING FUND BALANCE 19p6 1995 Budget Acrual Actual $ 490,447 $ 497,852 $ 414,861 1,593 1,614 1,782 16,000 17,007 28.679 5.000 33.000 S 521.473 S 478.322 $ 295,661 $ 105.000 $ 13,765 13,491 12,670 4,750 70,704 11,520 3,538 75.802 80.319 55 666 i 94.317 S 460.175 S 188.394 $ 91,250 S (227.450) (227.950) S (328.6Sn) S (227.450) S (136.200) S (328.650) S 186.273 $ (74,902) $ (38,722) 334.470 373.701 S� S 39 CITY OF MONTICELL40 Statement B-8 URBAN DEVELOPMENT ACTION GRANT FUND STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE - BUDGET (GAAP BASIS) AND ACTUAL For The Year Ended December 31, 1996 With Comparative Actual Amounts For The Year Ended December 31, 1995 Revenue, Interest Excess of Revenues over Expenditures Other Financing Sour— fu—n) Transfer, out Excess (Deficiency) of Revenues and Other Sources over Expenditures and Other Uses Beginning Fund Balance ENDING FUND BALANCE I Lu 1995 Budget Actual Actual S 11.120 S 15.446 S 20.391 $ 11,120 $ 15,446 $ 20,391 L--AA—I20 $ (134,554) $ 20,391 256.362 237.971 S 123.808 $ 2.�6. 3�2 40 CITY OF MONTICELLO Statement 8-9 ECONOMIC DEVELOPMENT AUTHORITY FUND STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE - BUDGET (GAAP BASIS) AND ACTUAL For The Year Ended December 31, 1996 With Comparative Actual Amounts For The Year Ended December 31, 1995 Revenue Interest income Other Total Revenues RY ndi r e Other Excess of Revenues over Expenditures Other Financing Golrc a Transfers in Excess of Revenues and Other Sources over Expenditures Beginning Fund Balance ENDING FUND BALANCE 1996 1995 Budget Actual Actual $ 17,445 $ 39,749 $ 28,937 3.808 75^ $ 17,445 $ 43,557 $ 29,687 2.120 Ila 2_t+62 $ I5,325 $ 43,437 $ 27,625 5 115.325 $ 333,437 $ 27,625 685 926 65a301 e 5 .685.926 41 CITY OF MONTICELLO Statement B-10 WATER IMPROVEMENT FUND STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE - BUDGET (GAAP BASIS) AND ACTUAL For The Year Ended December 31, 1996 With Comparative Actual Amounts For The Year Ended December 31, 1995 Revenues Hoak -up fees Interest Total Revenues P.xnendsruren Capital improvements Excess of Revenues over Expenditures Beginning Fund Balance ENDING FUND BALANCE 1996 1995 Budget Actual A +ac Lt $ 76,080 $ 89,969 $ 71,853 6.000 21.346 16.010 $ 82,080 $ 111,315 $ 89,863 20s0o 13. 95k 0 S 61.580 $ 97,364 $ 89,863 298.696 248.833 5 396.060 S 298.696 42 CITY OF MONTICELLO Statement B-11 SEWER IMPROVEMENT FUND STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE - BUDGET (GAAP BASIS) AND ACTUAL For The Year Ended December 31, 1996 With Comparative Actual Amounts For The Year Ended December 31, 1995 Revenues Hook-up fees Interest Total Revenues Expenditures Capital improvements Exccaz cf pe—n—s over Expenditures other Financing sources (Uses) Transfers out Excess of Revenues and Other Sources over Expenditures and Other Uses Beginning Fund Balance ENDING FUND BALANCE 1996 1995 Budget Actual Actual $ 189,400 $ 325,754 $ 235,918 3.700 30.871 14.015 $ 193,100 $ 356,625 S 249,933 28.000 40.649 5 165.100 $ 356,625 $ 209,2tl4 43 $ 281,625 $ 209,284 353.291 144.009 5 634.918 S '+s 1.2oa CITY OF 14ONTICELW Statement a-12 CENTRAL MINNESOTA INITIATIVE FUND STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE - BUDGET (GAAP BASIS) AND ACTUAL For The Year Ended December 31, 1996 with Comparative Actual Amounts For The Year Ended December 31, 1995 Revenues other Total Revenues Excess of Revenues over Expenditures Beginning Fund Balance ENDING FUND BALANCE 1446 Budget A tUaal 1995 actual S 195 S 130 S 110 130 S 110 $ 195 $,. 44 i I I. I. • I. I. I. I. I CITY OF MONTICELLO Statement B-13 ECONOMIC RECOVERY GRANT FUND STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE - BUDGET (GAAP BASIS) AND ACTUAL For The Year Ended December 31, 1996 With Comparative Actual Amounts For The Year Ended December 31, 1995 Revenues Interest Other Total Revenuea Excess of Revenues over Expenditures O h r P'n ., ina co +rces (Ua al Transfers out Excess (Deficiency) of Revenues and Other S—rces 0:•cr Mnpen- ditures and Other Uses Beginning Fund Balance ENDING FUND BALANCE 1996 1995 BuQget Actual Actual- -$ 7,625 $ 12,509 $ 12,036 180 1.195 1.165 S 7.805 5 1].709 5 13.201 $ 7,805 $ 13,704 $ 13,201 (50.000) S 7.805 $ (36,296) $ 13,201 148.184 134.983 S 111.888 5 198.184 45 CITY OF MONTICELLO Statement STORM SEVER ACCESS STATEMENT OF REVENUES, EXPENDITURES AND CHANCES IN FUND BALANCE BUDGET (GAAP BASIS) AND ACTUAL For The Year Ended December 31, 1996 Revenues Hook-up fees Interest Total Revenues Excess of Revenues over Expenditures Beginning Fund Balance ENDING FUND BALANCE 1996 Budget Actual $ 13,520 -,qq n S 14.118 $ 0 0 46 CITY OF MONTICELLO Statement C-1 DEBT SERVICE FUNDS COMBINING BALANCE SHEET December 31, 1996 With Comparative Totals at December 31, 1995 LIABILITIES Atm FIPM Pawu Liabilities Cash deficit Deferred revenue Total Liabilities Fund Be lances Reserved for debt "ice. TOTP-L LIABILITIES AND MID BALANCES 5 589.726 S 101.542 $ 589,726 $ 101,542 47 Cenenl General Obi lgatlon General General Obligation Sever obligation Obligation Tax Increment A0Id. of 1985 Consolidated Bond FLW Interceptor Bonds OL 1986 Improvement Benda oL 1977 Improvextlt 121111-21-1211 Cash and investeents S 79,586 $ 252.469 S 655,419 Accounts receivable 15a 747 Special assessment. Deterred 154.426 99,484 Delinquent 1]5.101 3 M TOTAL ASSETS S 19.594 S 942.154 5 o S 757.7.9 S C LIABILITIES Atm FIPM Pawu Liabilities Cash deficit Deferred revenue Total Liabilities Fund Be lances Reserved for debt "ice. TOTP-L LIABILITIES AND MID BALANCES 5 589.726 S 101.542 $ 589,726 $ 101,542 47 CITY OF MONTICELLO DEBT SERVICE FUNDS COMBINING BALANCE SHEET December 31, 1996 With Comparative Totals at December 31, 1995 LIABILITI AALMS$i Liabilities Cash deficit $ 11,767 Deterred revenue 98.129 Total Liabilities 5 109,896 6Lnd Balance. Reserved for debt service. S 28.]11 (8.867) S 171.]51 TOTAL LIABILITIES AND FUND BALANCES S 0 S 28.199 5 101.029 S 171.]51 48 5 280,906 S1].156 190.178 S 11.791 S 13.156 $ 771,396 S 13,744 General General General General General General General General General General Obli- Obligation Obligation Obligation Obligation Obligation Obligation Obligation Obligation Obligation gation Taxable Tax Increment Tax Increment Improvement Water Taxable Improvement Tax Increment Improvement Improvement Tax Increment Bonds Seriee 1987Aries Bond. s 19870 Bond. Serie. 39BBA Bonds _ _ e 1988 Bonds EILICL12AIAL Sonde Series 19891 Bond. Serle. 1990A Bond. arias 19908 Bond. Series 1990[ Bond. Se rima 1990D Cash and Investment. $ 26,344 5 171,058 $ 11.864 5 33,617 $ 178,201 5 58,363 Accounts receivable $ 2.900 293 66 $ 116 56 Special assessment. Deferred 91,330 12,307 13,128 Delinquent 6.799 769 490.938 615 TOTAL ASSETS S 0 S 2..111 5 101.029 S 171_]51 S 31-861 S 16.817 S 0 S 190-551 S 192. Ot!0 1 --aa]" LIABILITI AALMS$i Liabilities Cash deficit $ 11,767 Deterred revenue 98.129 Total Liabilities 5 109,896 6Lnd Balance. Reserved for debt service. S 28.]11 (8.867) S 171.]51 TOTAL LIABILITIES AND FUND BALANCES S 0 S 28.199 5 101.029 S 171.]51 48 5 280,906 S1].156 190.178 S 11.791 S 13.156 $ 771,396 S 13,744 Statement C-1 (Continued) General General General General General General General General General Obligation Obligation Obligation Obligation Obligation Obligation Obligation General Obligation Obl l gat IonS- a r Inter - Improvement Ie�rovement Tax Increment Tax Increment Refunding Refunding Obligation Improvement Refunding ceptor Refund. Bond, Bond, Bond Bond Bond. Bond. leprovement Bond. Bonda ing Bond. rural. t re iea��99.s Serie. 1992A Series 199] Series 19930 Settee 1993& Series 1994& BOnda mf 1995 Series 1996A of 19960 Series 1996[ 1996 1995 $ 190.444$ 788,780 $ 23,097 $ 15,287 S 203,013 $ 270,95B $ 996,665 5 707 $ 147,964 S 106,289 5 1.660.943 $ 3.324.088 9 31 266 294 4,767 154 290 10,247 14,367 75.810 26,051 1,587,829 162.277 2,161.661 2.361.714 7.718 6.575 951.293 993.975 5 324.001 S 414-864 5 ]]-097 $ 35.387 S 284.0]9 5 271.352 S 2.995.835 S 16]-198 $ 147.984 5 104.5]9 5 7.004.164 S 6.642.]60 5 41.548 $ 26.051$ 292.675 S 241.274 $ 41,5{8 $ 26.051 S 1.594.402 $ 162.217 3.132.973 3.304_309 5 1,594,402 5 162,23] S 3,425,648 $ 3,545.583 224.001 168.81] 5 2].097 L----AA-267 S 284.079 S 271.2__ 1-001-433 961 5 14]_984 S 104.579 3.576.516 1.09].171 $ 224.001 $ 411.864 $ 21.091 5 15.28] "-"= L--UL—A"..&—=.wS 14]_961 5 106.579 5 7.004.164 5 6.642.760 49 CITY OF MONTICELLO Statement C-2 DEBT SERVICE FONDS COMBINING STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES For The Year Ended December 31, 1996 With Comparative Totals For The Year Ended December 31, 1995 General General Obligation General General Obligation Serer Obligation Ohl igat ion Tax Increment consolidated Interceptor Isprovement Iaprrnrent Bond, of 1985 Band Fund Rood. of 1986 Ponds of 1977 Bonds of 1996 even... Taxa. $ 114.123 S 7,795 Collections on seats see, nts 5 16.506 41,094 Intergoverneental 10,482 716 Interest on inveatments S a9a 14-114 2.045 17.405 Total Revenues L=___898 L=_12."2 5 S2fi.550 S 93.434 Ern ,�di ttyr,, Debt service Principal retirement S 15,000 $ 650.000 S 65,000 Interest and fiscal charges 22.168 42.435 12.418 Total Expenditures S 17.168 S 692.435 S 17.011 Excess (Deficiency) of Rev- , enues Over Expenditures g, 136.2701 S 12.920 a (S65.7A51 S 15.922 Other Financin, Source. (Uses) Transfer. in tout) S 35,575 5 (104,5791 S 1196,341) Bond Proceed. 579.135 Total Other Financing sources (Uses) S 3S.575 S 474.556 S (396.141) Excess (Deficiency) of Rev- enue. and Other Sources over Expenditures and Other Gas$ S 7695) $ 32.620 S (91,229) S 15.922 5 (196,141) Fund balances at beginning of year 40.279 219.808 91.229 640.244 196.141 FUND BAIA$= AT END OF YEAR S 39.584 9 252-628 E 0 55 656 166166 5 4 50 CITY OF MONTICELLO DEBT SERVICE FUNDS COMBINING STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES For The Year Ended December 31, 1996 With Comparative Totals For The Year Ended December 31, 1995 General General Obligation Obligation Tax Increment Tax Increment Bond. Bonds Series 19B7A eriea 19978 • ^ Taxes Collection* on sa.es.ments Intergovernmental Interest on investments S 399 Total Revenues 5 199 AmenA dl"n Debt service Principal retirement S 170,000 S 25.000 Interest and fiscal chargee 11.828 1.949 Total Expenditures S IR1.s28 S 28.949 Excess (Deficiency) of Rev- enues Over Expenditures S (181.028) S 129.450) h r P n n ins So art n l �s ^) Other Tranafera in (out) $ 12,0]6) S 26,175 Bond proceed. 110.549 Total Other Financing Sources (Use.) S 127.711 L___26_175 Excess (Deficiency) of Rev- enues and Other Sources Over Expenditures and Other Uses 5 (54,115) $ (2,075) Fund balance* at beginning of year 54.115 ]0.419 FUND BALANCSS AT END OF YEAR 5 0 5 29.144 51 General General General General General General General Obligation Obligation Obligation Obligation Obligation Obligation Obligation Improvement Mater Taxable Improvement Tax Increment Improvement Improvement Bonds Bond. Bonds Bond. Bond. Bond. Bonds Series 1988A Series 19.. Series 1999A Serlee 19998 _ e 1990& JCLjjA_A2jSaL Series 1990C S 115,672 S 21,599 6 45,691 5 22,015 $ 21.760 2,294 51051 10,008 10,602 1,984 4,197 2,022 6.284 S 698 1.147 9-626 i 21.]60 S 112.118 S 698 S 27.014 5 54.945 5 41.]51 6 105,000 S 65,000 S 10,000 S 25,000 S 180,000 S 445.000 $ 25.000 •2.168 52.91] 20-606 9.417 _ 21.21c 46 519 12.122 S 147.168 5 117.917 5_ ]0.606 L_12-112 5 403_215 S 491.519 S (125.608) $ 14.401 S (29.908) L___(6_422) S (401.215) S (416 574) S 6.429 S 29,450 S 17,IS4) ]11.241 ]88.995 S 29.450 S 104.087 S 198.995 $ (125.600) $ 14,401 S (458) 3 (6,421) S 199,148) 5 (47,579) 5 6.429 316.]41 _ 156.950 32.122 40.10• 99.148 Ill] 211) 171.627 5 18.867) 517 S 31.864 5 17.681 5 0 S 1280.]92) Statement C-2 Montinued) General General Obli- General General General General Gene to General General Obligation gation Taxable Obligation Obligation Obligation Obligation Obligation Obligation General Obligation General Serer Inter. Tax Increment Improvement Improvement 'rax increment Tax Inclement nef-ding Ar[u«dilry GLllyeilal :mpzc.ccc:t ^blig+lion ceptor Refund- Bonde Benda Benda Bond Bond Bond. Gonda Improvement Bond. Refunding ing Bond. Total, Se[ie, 19909 Serie, 1591A aerie. 1992A Aerie, 1992 Aerita 19921) Serie, 1991A Seri,. 1994A ponds of 1995 Serle, 1996A Bonds of 19968 Eerie, 1996C 1996 1995 $ 3,570 1$ 30.175 $ 104.791 $ 115,967 $ 33.856 $ 595,010 3 636.754 5,780 17,919 $ 979,852 10,290 1,121,624 407,051 328 935 9,624 101651 3,110 54,651 70,097 5 997 10.922 22.942 5_ 549 S 34,9 32.967 11.621 27.091 5.017 S 2.444 161.735 167.821 5 997 S 21.600 S 51.971 5 549 5 349 S 127.372 S 118,239 S 1.002.941 5 S2_293 5 2.444 $ 0 5 1.915.020 s 1 le, S19 $ 35.000 $ 75,000 5 75,000 $ IS,000 $ 10,000 S 130,000 $ 230.000 S 2,550,000 $ 925,000 17.602 14.537 27.592 6.663 4.225 7.115 $ 19.862 S 213.788 17.671 626.449 480.746 5 52.602 S 89.837 5 102.892 5 21.663 $ 14.22s 5 137.135 s 19.662 S 213.799 S 247.673 5 0 S 3.178.449 5 1.405.746 5 151.605) 5 166.237) $ (50.021) S (21.114) S_ (13.876) S (9,761) 5 118.177 1 789.155 S 1195.380) 5 2.444 S 0 5 (1.24].429) S 1123.217) $ $4,025 $ 20,475 $ 13.400 $ 196.341 $ 145,540 5 104.579 s 318,050 $ 320,650 1.409.920 17.505 5 ,1,4.025 5 2047S 5 13.400 5 196.341 5 145.540 5 104.579 1.724.770 S 346.155 $ 2,420 $ 166,237) $ (50,921) $ (639) $ (476) $ (9,763) $ 116.377 5 789,155 $ 961 $ 147,964 5 104,579 $ 481.341 S 222.930 55.943 246.690 439.714 23.736 15,791 291 152.575 212.278 0 0 0 3.097.175 2.874.239 S 8-151 $ 180 4s3 S 388.81] S 21.097 S 25 ZR7 1 +� SS 271.2x7 $ 1p 0� G1417 g 461 S 147.984 5 104.579 1.578.516 $ 7.097.177 52 CITY OF NONTICELLO Statement D-1 CAPITAL PROJECTS FUND COMBINING BALANCE SHEET December 31, 1996 53 1993 public Ocellol 8$r=it Weadoe Deka Works Bldg. Butwod school rater Southwest [lois Brier Csrdisal Cash and investeenta S 60,057 R—juesioa Knoll 5 244,939 Boulevard $ 372,685 Raearvsir 5 56,582 Ata, 5 28.536 parse $ 196,015 Pak, _ Rills XV $ 24,491 Long term receivables 75,005 Accounts receivable 483 TOTAL ASSL7T9 S 6s.Oc7 5. 0 S 121.22] 5 172 69c S 56.582 5. 26.576 5 146.015 5 0 5 24.491 LIABILITIES AND FL.:_ BALANCES Liabilities Cash deficit Accounts payable $ 383 $ 910 5 1,350 Contract, payable 18,099 $ 14,964 2,909 15 5 56.592 $ 20.752 Deferred revenue 46.375 32.000 Total Liabilities 5 1a.482 s 14,064 5 50.194 5 r 1.165 5 ah -S92 S 28 752 Fuld Balances Designated for capital ieyrovement, 5 49.575 S 230,458 $ 322,491 5 56,582 5 27,171 5 107,423 5 (4,261) Reserved for noncurrent loan, receivable 7c 90c Total Fund Balance. S 49.575 5 306.253 5 122.491 S c6 c82 S 27.171 L 107.421 5 (4.261) TOTAL LIABILITIES AND FOND BALANCES 5 68.057 5 0 5 121.227 5 ,7l] 6 S c6 cB2 S 29.536 5 196.015 5�0 5 24.191 -------------------------- _-------- _------------------ ______...... _...... _..__........... WWTF ..._.._.....__.............. ..._..................... ._..............._...__..__ ASSETSBills Cardinal V patbwey protect Rapaasioo Dundas Brier Biala Riwer St. Ray 2S Cash and investarents ; 116,952 Vr,1,rt Road S 21,079 Oaks $ 72,650 paras $ lad 0,025 Trk SAW 5 BEN 4,439 WH DOT lea S 6,080 Total $ 1,226.338 Long term receivables 75.805 Accounts receivable BT 533 B8 119 TOTAL ASSETS 5� 22 5 8 S 0 5 21.8 T4 S 160 + 5 8.825 5 4.439 5 6 OBp 5 1. 392.2ca LIARIL:TIES AND FL___ AALA= Liabilities Cash deficit S 549 S 1,500.894 $ 1,601,443 Accounts payable $ 505 110 $ ISE 6 14,033 5 85 S 291 18.682 Contracts payable 3,500 277,76S 60.725 111181 472,502 Deferred revenue 1.3c0 21.011 102A02 Total Liabilities 5 S 719 S 3 878 ace ---L= S 2.156 S Tc c S 21.162 S 13.472 S 2 19S 410 Fund Balances Designated for capital i%wrovesents S 113,597 5 (7141 5 (1,878.659) 3 25,123 S 84,924 5 432.337) g (7,03)) 5 6.088 0 (078,977) Reserved for noncurrent loans receivable 7'• A0c Total fluid Balances 5 Ill %97 c97 S (719) S (1.RU J59) S_ 2c-72$ 5 R4 9141 (12.317) S (7-031) 5 6.088 Ifir'1-1721 TOTAL LIABILITIES AND FOM) BALANCES 5 116.952 S D S. 0 S 27 R79 S 260 a 5 8.825 � 5 4.439 6 0 5���88 S 3 102 a D IY 53 CITY OF MONTICELLO CAPITAL PROJECTS FUND COMBINING STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE For The Year Ended December 31, 1996 Statement D-2 Ism Cardinal 1993 Publle Is PrP gap ... loo Oc.II./ Briar slain Rlvar at. BBF 25 Mad- wort. Bldg. eaat.00d School rater O.Ae Boutb.a.t Al.i. TRA RAB Briar Cardinal Pll1a IV Revenues Interest income Oa)u S 4,339 RaRaosion $ Anoll S 18,359 EOulerard $ 28,426 Area.- 5 3,391 5 2,643 Parse S 11.970 OeAe 5 1.746 469.796 Other 7.423 5 90,426 Other 97.262 S 16.200 97-632 S 471.542 Total Revenueo L---U-2k2 678.]13 5 115.621 5 28.126 5 ].]91 5 2.643 5 1.196 11.970 95-961 S 499 BSmendL n Construction contract. $ 11,292 5 6,679 5 20,790 5 93,523 $ 27,151 S 20,709 S 2,580 S $ 10,660 3.324 Engineering and other 1.522 71,754 5.839 2-016 19.178 Engineering and other 1.557 5 5.203 5 1.755.998 26.662 Total Expenditures 5 14.814 $ 12-516 5 22.806 S 112-701 1 931 4S7 Total Expenditure. 5 22_jj§ 5 2.560 5 1.755 999 $ 1].964 Excess (Deficiency) of Revenue. over 47] 954 S 12.9]6 5 92.0]7 5 ]. 91j _ 2.712.256 Excess IDeficlency) of Revenues over Expenditures L --LL=) j --j12.=) S 92.815 S 164.273) 5 1 391 5 119.623) S 9.190 121.395) 5 457.556 Other Plndnclna B n IUaee1 Transfer in - - S (144.544) S 22.625 S (12.337) 5 192.0311 5 1].9121 - 11.94].517) Other Financing Sources I119ee) Transfer in Transfer out 5 3,265 S 75,000 5 10,000 S 124.619 $ (3,265) Bond proceeds (3.265) Bond proceeds Total Other Financing Source. (Uses) 5 22.625 5 170.267 459.652 5 I;�S) 629.919 Excess (Deficiency) of Revenues and L ---.L].729 5 170.267 5 462.917 S 75.000 $ 10.000 Other Sources over Expenditures and Excess (Deficiency) of Revenues and Other Uses S (3.052) $ 10,107 S 92,815 S (84.213) S 3,391 S 119.623) S 91390 5 (3,265) $ 457.558 Fund Balance at beginning of year 52-62] 110.1071 213.446 406.764 S 9.526 5].191 46.794 S 96.0]3 3.265 (461.619) FIRM BALANCE AT END OF YEAR ...............................................................................................................................................................................--------- 5 49.575 5 0 5 106.261 5 322.491 S 56.582 S 27.171 5 10].421 S 0 14.261) ........ 54 Cardinal Fath..y Is PrP gap ... loo Dundas Briar slain Rlvar at. BBF 25 Revenue. Rllle V Prelaet Pro4eet Road O.Ae W312 -191- TRA RAB RPB FW DOS Imo Total Interest income $ 9.426 S 1,396 $ 9.229 S 499 5 90,426 Other S 16.200 97-632 678.]13 Total Revenues S 9-426 S 16.200 5 1.196 95-961 S 499 5 769.739 5201`01"112 COAs[NttiCn contracts $ 27,151 5 119.279 S 392,471 S 71,754 5 3,912 5 790,799 Engineering and other 3.670 5 5.203 5 1.755.998 26.662 91.393 1 --ALMA 10.279 1 931 4S7 Total Expenditure. 30 62t 5 5.201 5 1.755 999 S 145.940 47] 954 S 12.9]6 5 92.0]7 5 ]. 91j _ 2.712.256 Excess IDeficlency) of Revenues over Expenditures 9 121.395) 5 15.2031 5 (1.739.798) S (144.544) 3 (377.993) S (12.337) 5 192.0311 5 1].9121 - 11.94].517) Other Financing Sources I119ee) Transfer in S 13,729 5 3,265 S 75,000 5 10,000 S 124.619 Transfer out (3.265) Bond proceeds 5 170.267 459.652 629.919 Total Other financing Source. (Uses) L ---.L].729 5 170.267 5 462.917 S 75.000 $ 10.000 ]51 277 Excess (Deficiency) of Revenues and Other Sources Over Expenditures and Other Use. S (21,395) S 9.526 $ (1.739,788) S 25,723 S 84,924 S 112,]37) 5 17.0331 S 6,099 S (1,192.244) Fund Balance at begiming Of year 114.992 19.2451 1139.971) O 0 0 0 0 _ 399.072 FUND BALANCE AT ED) OF YEAR S 111.597 S 1719) S II.B7B-659) S 25.723 A 94.924 5 172.777) 5 17.01]) 5 6.0981") 54 CITY OF MONTICELL0 PROPRIETARY FUNDS COMBINING BALANCE SHEET December 31, 1996 with Comparative Totals at December 31, 1995 AS= Current Assets Cash and investments Accounts receivable Inventory Prepaid expenses Total Current Assets Property and F.auiomen[ Land, buildings and improvements Equipment Less: Accumulated depreciation Property and Equipment - Net Other A-- Special e4 nSpecial assessments receivable - deferred Special assessments receivable - delinquent Total Other Assets TOTAL ASSETS 1. AAI IT1 S App F:OUITY current Iiahilirieq Cash deficit Accounts payable Accrued expenses Due to other funds Total Current Liabilities Deferred revenue Total Liabilities E—ity Contributed capital Retained earnings Total Equity TOTAL LIABILITIES AND EQUITY Statement E-1 TOTA S Sever water Liquor Transports- Cemetery December 31, December 31, Fund Fund Fund tion Fund Fund 1996 1995 $ 213.032 $ 210.372 $ 405.854 S 829,258 $ 529,526 162,988 57,598 (31) $ 37 220,592 193.169 201,500 201,500 172,612 1.938 4.267 3.102 9.314 10.326 S 377.958 $ 272.237 S 610.432 S 37 S Q S 1.260.664 S 905 631 S 12,124,948 $ 6,019,111 $ 273,164 180.280 151.088 84.629 S 12,305,228 $ 6,170,199 $ 357,793 (5.310.275) (2.596.141) (240.813) S 6.994.951 S 3.574.058 P 136 980 $ 18,417,223 $ 16,122,632 415.997 413.761 $ 18,633,220 $ 16,536,393 18.147.229) 17.300.304) S 10.665.991 S 9.236.089 $ 27,381 $ 27,381 S 26.411 5.759 5.759 6 415 S 37.140 S 37.140 S 32.866 5 7.372.911 5 3.879.415 5 727.412 S 37 $ 0 S 11.979.795 S 10.174.608 $ 12,063 S 850 S 12,913 5 1,154 S 35,575 5 6,540 S 475 38 75 42,703 22,207 863 28,034 49,578 53 22 78,550 64,168 $ 36,438 S 34,574 S 120,053 S 12,154 S 947 $ 204,166 S 137,529 33.140 37.140 72.886 L-16—ill S 67.714 P 120.051 _ 12.154 S 94.1 5 237.306 S 170.415 S 6.339.448 $ 3,552,752 S 9,892,200 $ 8,430,164 997.025 258.969 S 607.359 S,._ (12.117) S 194Z) 1.850.289 1.574.029 S 7.136.473 S 3.811.721 S. 607.359 S (12.117) S 1941) S 11.742.489 S 10.004.193 ""La" S 1-15 $ 727.412 5��7 S 0 S 11.979.795 S 10.174.608 55 CITY OF MONTICELLO PROPRIETARY FUNDS COMBINING STATEMENT OF REVENUES, EXPENSES AND CHANGES IN RETAINED EARNINGS For The Year Ended December 31, 1996 With Comparative Totals For The Year Ended December 31, 1995 Statement E-2 56 TQUV Sewer Fund Mater Fund Liquor Fund Transporta. tion Fund Cemetery Fund December 31, 1996 December 1995 31, sales and Cost bf cal a Sales $ 1,852,661 $ 1,852,661 $ 1,653.333 Coat of sale. i.401908 I.401. 906 1.267.143 Gross Profit $ 450,753 $ 450,753 $ 385,390 Operating Revenues Utility user fees, connection., inspection fees and other operating revenues S 597.974 S 254.909 S 27.114 IS 4.016 884.011 796.697 Total Gross profit and operating Revenues S 597.97A S 254.909 S 450-753 S 27 Ili 5 4.010 5 1.334.764 S 1.182.887 OperBtinq Fxp na e, Salaries and employee benefits $ $9.553 $ 78,153 S 140,671 $ 1.958 S 356 $ 280,691 $ 269,940 Utilities 9,482 47,915 13,485 70,882 57,251 Supplies and materials 10,768 32,438 8,695 447 105 52,453 45,728 Repairs and maintenance 4,588 452 6,529 11,569 13,914 Depreciation 624.233 211,045 13,711 848,989 632,405 Insurance 11,816 11,185 12,078 35,079 35,048 Professional fees 442,74$ 10,347 2,656 63,637 4,496 524,084 510,825 Advertising 6,265 38 6,323 5,421 Miscellanso 8 1 626 16.461 13-421 62 34.476 ;3 91{ Total Operating Expense. S 1.166 713 $ 409.961 S 217.5,13 S 66.349 S 4.957 5 1.865.648 S 1.594.446 Operating Income (Loss) S 1668 736) $ t1S5.08V L__233= c (39.235) 5 (947) 5 (530.764) S (411-5S9) Other Revenues l .xp ns s) Property taxes $ (803) S (177) S (980) S (778) Interest income (expense) 9,925 $ 10,224 16,733 $ (549) 36,333 75,604 Intergovernmental 26,456 26,456 31.879 Cash over (short) (288) (288) 175 Miscellaneous income 10,500 1,429 11,929 (2,312) Rental income 22.7 Total Other Revenues (Expenses) 5 42-346 L----U-Z24 5 16.266 S 27.316 S 96.174 S 108.836 Income (Lose) Before Transfers S (526 189) S (144.863} S 249.488 a (11'899) S (947) S (434.6101 5 (302.723) Transfers Transfers out 5 1112. 6,jg) S. (112.625) S (432.296) Net Income (Loss) S (526,369) $ 4144,863) $ 136,863 S (11,899) $ (947) S (547,235) S (735,019) Retained earnings at beginning of year 901,054 202,697 470,496 (218) 0 1,574,029 1,707,717 Depreciation -contributed assets 621.092 201 116 Retained Earnings at End Of Year S 995_.767 $ 268 469 5 607.359 S (12.117) S 1947) 622.227 S 1.849.021 S 601.331 1 61{ 0 9 Contributed capital at beginning of year $ 5,676,482 S 2,753,682 5 8,430,164 $ 9,024,422 Assets contributed during year 1,285,326 1,000,205 2,285,531 7,073 Depreciation -contributed assets Contributed Capital at End of Year (621.092)�r) S 6.340.716 5 3 cc? 252 (822.227) S 9.893.468 S (601 131) 8.430.164 RETAINED EARNINGS/CONTRIBUTED CAPITAL END OF YEAR 55 7316 C4 1 5 607 354 $ (12.117) S 1947) 5 11.742.989 $ 10 009 193 56 CITY OF MONTICELLO PROPRIETARY FUNDS COMBINING STATEMENT OF CASH FLOWS For The Year Ended December 31, 1996 With Comparative Tota le For The Year Ended December 31, 1995 Statement E-3 TOTAL -S Sever Water Liquor Transports- Cemetery December 31, December 31, Fund Fuad Fund [ion Fund Fund 1996 1995 Cash floes from operating activities: Net income (lose) before transfers $ (526,389) $ (144,863) $ 249.488 $ (11,899) $ (947) $ (434,610) $ (302,723) Adjustments to reconcile net income to net 13,711 cash provided by operatinq activities: 632,405 Depreciation 624,233 Changes in assets and liabilities 6,515 (Increase) decrease in accounts receivable (16,6211 (Increase) decrease in inventory 3,122 (Increase) decrease in prepaid expenses 1511 (Increase) decrease in special assessments (506) receivable - deferred 300 (Increase) decrease in special assessments (3,676) receivable - delinquent Increase (decrease) in accounts payable 19,094 Increase (decrease) in accrued expenses 311 Increase Idecreace) in due to other funds (18,676) Increase (decrease) in deferred revenue 1300) Net Cash Provided by Operating Activities S 100.977 Cash flovs used on noncapital financing activities: 20,000 Transfers out (50.000) Cash floes from capital related financing activities: Capital Expenditure. Equipment Building and improvements Net Cash (Used) in Financing Activities Net increase (decrease) in cash and cash equivalents $ 100,577 Cash and cash equivalence at beginning of year 112 455 Cash and Cash Equivalent. at End of Year S9 211 017017 57 211,045 13,711 848,989 632,405 (11,820) 100 918 (27,423) 6,515 (28,888) (28.888) 3,122 891 172 1,012 (506) (1,210) (910) (3,676) 656 656 (51108) 3,278 (1,991) 38 75 20,494 (18,676) 3,395 10,620 34 22 14,382 3,116 20,000 20,000 (50.000) 2) S (2,236) S (2,236) S (49,605) (11.122) (11.122) 116.165) S 111 158) S (13.350) S 165.770) S 61,926 $ 137,229 $ (10,909) $ (850) S 287,973 S (224,813) 148 446 260.625 11.154) 0 52. 177 757.105 S 2�1_0.17y7 $405 = $ 112.063) L---.=) $ 528.372 CITY OF MONTICELLO Statement E-4 SEWER FUND COMPARATIVE BALANCE SHEETS December 31, 1996 and 1995 ASSETS CUXLCaLAaa= Cash and investments Accounts receivable Prepaid insurance Total Current Assets Property and E+ipment Land, buildings and improvements Equipment Lees: Accumulated depreciation Total Property and Equipment - Net Special assessments receivable - deferred TOTAL ASSETS LIABILITIES RAID EQUITY rlrrent Liebilitie_a Accounts payable Accrued expenses Total Current Liabilities Deferred Revenue Total Liabilities Sm1itY Contributed capital Retained earnings Total Equity TOTAL LIABILITIES AND EQUITY 58 1996 1995 $ 213,032 $ 112,455 162,988 146,361 1 qIg 1 BR7 S 377.958 S 260.709 $ 12,124,948 $ 10,841,684 180.280 180.200 $ 12,305,228 $ 11,021,964 (5.310.275) 14.688.105) S 6.994.953 p 6 331 R5q S q S Inq S 7.372.911 S 6.594.860 $ 35,575 $ 16,480 R6; 55j $ 36,4.38 $ 17,032 0 Inn S 36.930 S 17.3'+2 $ 6,339,448 $ 5,676,482 997.025 901.054 6 S 7.33. AOI S 6.577 536 S 7.372.911 S 66 c94 a6aRU CITY OF MONTICELLO Statement E-5 SEWER FUND TOMPARATIVE STATEMENTS OF REVENUES, EXPENSES AND CHANGES IN RETAINED EARNINGS - BUDGET (GAAP BASIS) AND ACTUAL For The Year Ended December 31, 1996 with Comparative Totals For The Year Ended December 31, 1995 Ooeratino Revenue Utility user fees Assessment revenue Penalties Inspection fees - improvement projects Miscellaneous Total Revenue �eratina Exoenaee Salaries and employee benefits Telephone Utilities Supplies Repairs and maintenance Professional fees Insurance Depreciation Miscellaneous Total Operating Expenses Operating Income (Loss) Other Revenues fan nn s) Property taxes - rental Rental income Other income Interest income Total Other Revenues (Expenses) Net Income (Loan) Retained earnings at beginning of year Depreciation - contributed assets Retained Earnings at End of Year Contributed capital at beginning of year Assets contributed during year Depreciation - contributed assets Contributed Capital at End of Year RETAINED EARNINGS/CONTRIBUTED CAPITAL AT END OF YEAR 1996 1996 1995 $ 516,460 $ 567,653 $ 530,907 322 345 1,800 20,937 2,830 1,000 9,066 13,312 1.210 S 519.260 S_ 597.978 S 548.604 $ 61,380 $ 59,553 $ 53,593 2,125 113 631 4,000 9,482 4,100 14,475 10,768 12,944 11300 4,588 723 415,500 442,748 439,095 11,755 11,816 11,238 406,525 624,233 413,223 8.795 j 41l 2 btu S 925.R55 S 1.166.713 S 938.150 S (406.595) S IsrR 1715) S (389.546) $ (800) $ (803) $ (778) 22.724 4,268 10,500 3J00 9,925 S 1 $ 2.200 S 42.346 S 9.616 5 1404.395) $ (526,389) $ (379,930) 901,054 871,306 621.092 409.678 5 995.757 S 901.054 59 $ 5,676,482 $ 6,079,087 1,285,326 7,073 (621,092) !409.678) 5 6-140 711; S 676 nos CITY OF MONTICE= Statement E-6 SEWER FUND COMPARATIVE STATEMENTS OF CASH FLAWS For The Years Ended December 31, 1996 and 1995 Cash flows from operating activitiee: Net. inco^o {,.as) Adjustments to reconcile net income t0 net cash provided by operating activities: Depreciation Changes in assets and liabilities (Increase) decrease in accounts receivable (Increase) decrease in special assessments receivable - deferred (Increase) decrease in special assessments receivable - delinquent (Increase) decrease in prepaid expenses Increase (decrease) in accounts payable Increase (decrease) in accrued expenses Increase (decrease) in deferred revenue Net Cash Provided by Operating Activities Cash flows from capital and related financing activities: Capital expenditures Equipment Net Cash Used in Financing Activities Net increase in cash and cash equivalents Cash and cash equivalents at beginning of year Cash and Cash Equivalents at End of Year 60 1996 '_995 $ (526,369) $ (379,930) 624,233 413,223 (16,621) (15,720) 300 299 S (2,211) 5 12.233) $ 100,577 5 13,033 112.455 99J22_ S 213.032 S 122455 42 (51) 19,094 (2,526) 311 177 (30Q) (299) S 100.577 7FF S (2,211) 5 12.233) $ 100,577 5 13,033 112.455 99J22_ S 213.032 S 122455 CITY OF MONTICELLO Statement E-7 WATER FUND COMPARATIVE BALANCE SHEETS December 31, 1996 and 1995 ALI= r1,rr $ 1996 S 1995 n an H Cash and investments $ 210,372 S 145,446 Accounts receivable $ 57,598 $ 45,778 Prepaid insurance 4.267 S.Isk Total Current Assets S 272.237 5 199.352 Property and Eouioment Land, buildings and improvements $ 6,019,111 $ 5,018,906 Equipment 151.055 151.085 Total Equity $ 6,170,199 $ 5,169,994 Less: Accumulated depreciation S (2.596.141) S (2.355.097) Total Property and Equipment - net S 3.574.059 S 2.784.597 Other Assets Special assessments receivable - deferred $ 27,381 $ 26,171 Special assessments receivable - delinquent 5.759 6 415 Total Other Assets 1-J3.112 S 12 sAk TOTAL ASSETS S 3.579.4t5 e i p16 S6c LIABILITIES AND EQUITY n err nt Li hili i s Accounts payable $ 6,540 S 3,261 Accrued expenses 28.034 24.619 Total Current Liabilities $ 34,574 $ 27,900 Deferred Revenue 33.140 32.S86 Total Liabilities S 67.714 S 60.456 Equity Contributed capital $ 3,552,752 $ 2,753,682 Retained earnings 258.969 697 Total Equity S 3.811.721 a 2. 56 174 TOTAL LIABILITIES AND EQUITY S i S t wwia 61 t CITY OF MONTICELLO Statement E-6 WATER FUND COMPARATIVE STATD4ENTS OF REVENUES, EXPENSES AND CHARGES IN RETAINED EARNINGS - I BUDGET (GAAP BASIS) AND ACTUAL t For The Year Ended December 31, 1996 With Comparative Totals For The Year Ended Decembei 31, 1995 Operating Revenues utility user fees Penalties Inspection fees - improvement projects Miscellaneous Special assessment revenue Total Operating Revenues Otters incl FXG^na= Salaries and employee benefits Professional services Insurance Telephone utilities Supplies Gas and oil Repairs and maintenance Depreciation Travel and conferences Miscellaneous Total operating Expenses operating Income (Loss) Other Revenues (Exn ne ses) Interest income Net Income (Lose) Retained earnings at beginning of year Depreciation - contributed assets Retained Earnings at End of Year Contributed capital at beginning of year Assets contributed during year Depreciation - contributed assets Contributed Capital at End of Year RETAINED EARNINGSICONTRIBUTED CAPITAL AT END OF YEAR 1996 1996 1995 $ 186,600 $ 213,136 $ 186,121 Boo 1,519 1,191 1,000 2,829 7.102 90 10 900 37. 2.7.J 26 ---7 S 189.200 5 254,909 S 22: !17, $ 01,920 S 78,153 S 79,605 4,000 10,347 4, 54C' 11,805 11,105 11,761 1,400 1,968 1,55= 37,000 47,915 39,690 28,900 32,438 23,754 11600 1,503 1,330 3,200 452 90 198,125 211,045 202,300 600 330 435 16.300 14.660 _t 954 S 384.850 $ 4n9 496 5 377_0n7 $ (195,650) $ (155,087) $ (155,870) 62 3.750 in 729 9_SSO (191.900) $ (144,863) S (146,320) 202,697 157,364 201.135 _ 131.653 S 258-969 S 202.697 $ 2,753,682 $ 2,945,335 1,000,205 (2D1_LU) (191.651) C i 55,7 751 S 2.751 692 CITY OF MONTICELLO Statement E-9 WATER FUND COMPARATIVE STATEMENTS OF CASH FLOWS For The Years Ended December 31, 1996 and 1995 1996 1995 Cash flows from operating activities: Net income (loss) before transfers $ (144,863) S (146,328) Adjustments to reconcile net income to net cash provided by operating activities: Depreciation 211,045 202,300 Changes in assets and liabilities (Increase) decrease in accounts receivable (11,820) 5,652 (increase) decrease in special assessments receivable - deferred (1.210) (3,975) (Increase) decrease in special assessm,-nts receivable - delinquent 656 (5.108) (Increase) decrease in prepaid expenses 891 (1.118) Increase (decrease) in accounts payable 3,278 (2,801) Increase (decrease) in accrued expenses 3,395 4,078 Increase (decrease) in deferred revenue 55g 9.083 Net Cash Provided by Operating Activitica t F1 °lb �, 61.791 cash flown from capital and related financing activities: Capital expenditures Equipment 9 (39J03) Net Cash (Used) in Financing Activities ^y— (39.303) Net increase in cash and cash equivalents $ 61,926 $ 22,488 Cash and cash equivalents at beginning of year Cash and cash equivalents at End of Year 63 CITY OF MONTICELLO LIQUOR FUND COMPARATIVE BALANCE SHEETS December 31, 1996 and 1995 ASSETS Current Assets Cash and investments Accounts receivable In,entory Prepaid insurance Total Current Assets Property and Equipment Land Building and improvements Parking lot Furniture and fixtures Less: Accumulated depreciation Total Property and Equipment TOTAL ASSETS r.I naIt.ITIES A�?O ROU3TY n,r rent Li�ili[ies Accounts payable Accrued expenses Due to other funds Total Current Liabilities Retained Rarnings TOTAL LIABILITIES AND EQUITY 64 Statement E-10 1996 1995 $ 405,854 $ 268,625 (31) 69 201,500 172,612 A. 1Q2 3.281 S 610.432 S 444.SR7 $ 6,840 $ 6,840 226,573 215,451 39,751 39,751 89.629 82.393 $ 357,793 $ 344,435 (240.813) (227.102) S "A 9RQ 5 117.333 S 727.412 i 561.920 $ 475 $ 2,466 49,578 38,958 70.000 so.00Q S 120.053 S 91.424 S 607.359 S 470.496 S 727.412 L --A61.= CITY OF M0NTICELL0 LIQUOR FUND COMPARATIVE STATEMENTS OF REVENUES, EXPENSES AND CHANGES IN RETAINED EARNINGS off 5 - Liquor Mine Beer Miscellaneous merchandise Total Off -Sale Lees: Freight Gross Profit Salaries v_ and em Salaries end employee benefits Supplies Repalra and maintenance utilities Telephone Professional fee. Insurance Depreciation Advertising expense Miscellaneous Total Operating Expenses Operating Income Mh- Revenue- t8�meneeey Property taxes Interest income - investments Cash over Ishort) Total Other Revenues (Expenses) Income before Transfers Trannfers out Net Income Retained earnings at beginning of year RETAINED EARNINGS AT END OF YEAR Statement E-11 For The Year Ended ljerenher 11 1496 __ Fn6 The Year Ended December 31. 1995 Sales Cost Of cele, Gross Profit Percent to Sales Sale, Cost Of Sam, Gross Profit P[rCGDL o S -lea. S 516,935 $ 375,781 $ 141,154 27.311 $ 469.492 $ 344.656 S 124.8.: 26.596 206,631 152.83) 51,795 26.04 23.03 183,804 954.822 136,394 743.760 47,410 211.062 25.79 22.10 1.O6S.242 $ 31788,800 0,19.896 6 1,348,510 245.346 S 440,298 24.61% $ 11608,118 53-215 S 1,224,81C 43.046 $ 383,308 10-169 23.835 19.10 63.053 S 2 BS2.fi61 45.117 S 1.193.627 18.736 S 459,034 29.34 I4.781 6 1.661,333 $ 1,267,856 $ 393.477 23.681 8.281 $ 450.753 .45 24.33% $ 7.287 386.190 .44 23.24% $ 140,671 8.695 b, 529 13,485 2.210 2,656 12,078 13.711 6.205 11.213 65 MMMMMWWTV $ (177) 16,733 .90% (208) 1.021 S 16 268 .Est S 249,488 13.471 $ 116.861 7.I4t a70.49fi $ 607.359 S 1]4,967 BBSB 23, , IIS 13.461 2,105 4,457 12,049 16,882 5,421 3.038 214,349 11.90 5 171.841 10.341 $ 59.139 3.561 175 el 5 S9-314 1.57% $ 211,155 13.91% 1432.296) (26.02) $ (201.143) 671.637 $ 470. 49K CITY OF MONTICELW statement E-12 LIQUOR FUND COMPARATIVE STATEMENTS OF CASH HAMS For The Years Ended December 31, 1996 and 1995 1946 1995 Cash flows from operating activities: Net incomo before transfers S 249,488 $ 231,155 Adjustments to reconcile net income to net cash provided by operating activities: Depreciation 13,711 16,882 Changes in assets and liabilities (increase) decrease in accounts receivable 100 6,982 (Increase) decrease in inventory (28,888) 3,122 (Increase) decrease in prepaid expenses 172 570 Increase (decrease) in accounts payable (1,991) (13,349) Increase (decrease) in accrued expenses 10,620 3,970 Increase (decrease) in due to other funds 20.000 (50.000) Net Cash Provided by operating Activities S 263.212 S 199.332 Cash flows used in noncapital financing activities: Transfers out S (112.625) S (432.296) ■ Cashflows from capital and related financing ■■ act viti P,s: Capital expenditures Building and improvements $ (2.236) $ (16,165) Equipment (11.122) (8.069) Net Cash (Used) in Financing Activities S (13.358) S 124-2W Net increase (decrease) in Cash and Cash ' equivalents $ 137,229 $ (257,198) Cash and cash equivalents at beginning of year 268.625 52c Eta Cash and Cash Equivalents at End of Year 5 a05.85$ 55 268.625 t 66 67 CITY OF MONTICELLO Statement E-13 LIQUOR FUND COMPARATIVE STATEMENTS OF REVENUES AND EXPENSES - BUDGET (GAAP BASIS) AND ACTUAL For The Year Ended December 31, 1996 Off Sale pudoet Actual Gmsa Profit Liquor $ 119,000 $ 141,154 Wine 54,930 53,798 Beer 191,650 245,346 Miscellaneous 16.565 19.736 Total Off Sale Gross Profit $ 382,145 $ 459,034 Less: Freight (7.600) (9,281) Total Gross Profit $ 374,545 $ 450,753 Ooeratina Rxneneea Salaries and employee benefits $ 144,975 $ 140,671 Supplies 8,225 8,695 Repairs and maintenance 6,775 6,529 Utilities 14,200 13,485 Telephone 11900 2,210 Professional fees 4,200 2,656 Insurance 11,980 12,078 Depreciation 14,650 13,711 Advertising expense 4,000 6,285 Miscellaneous 15.400 11.213 Total Operating Expenses _ 226.305 217 SIA operating Income S 148,240 S 233 220 Other Revenues 1EXp nn n) Property taxes $ (190) $ (177) Interest income - investments 5,700 16,733 Cash over (short) (250) (298) Total Other Revenues (Expenses) S 5.270 5 16.269 INCOME BEFORE TRANSFERS 5 1"5®0 67 CITY OF MONTICELLO TRANSPORTATION FUND COMPARATIVE BALANCE SHEETS December 31, 1996 and 1995 ASSE'T'S Current Asae[e Accounts receivable TOTAL ASSETS L ARILITIES AND EOUITY Current Liabilities Cash deficit Accounts payable Accrued expenses Total Current Liabilities Retained Earnings TOTAL LIABILITIES AND EQUITY 68 Statement E-14 1996 1995 $ 37 S 955 iz S 955 $ 12,063 $ 1,154 38 S3. 11 5 12.154 5 1.173 5 112.117) 5 1218) r$ 3_1 CITY OF MONTICELLO Statement E-15 TRANSPORTATION FUND COMPARATIVE STATEMENTS OF REVENUES, EXPENSES AND CHANGES IN RETAINED EARNINGS - BUDGET (GAAP BASIS) AND ACTUAL For The Year Ended December 31, 1996 With Comparative Totals For The Year Ended December 31, 1995 Retained Earnings at End of Year i 1996 Budget 1996 Actual 1995 Actual Operating RBvenues Passenger fares $ 11,000 $ 11,544 $ 11,720 Property taxes 15,690 15.57Q 15,.76 Total Operating Revenues S 26.S9n S 27.114 5 26 956 QperaL ng Rxpensea Salaries and employee benefits $ 3.$62 $ 11958 $ 1,775 Supplies 200 447 172 Professional services 65,820 63,837 62,733 Advertising 600 38 Miscellaneous 140 69 7FQ Total Operating Expenses 5 70.322 S 6F 142 S- 64.24D Operating (Loss) S (43,711) S (39.235) 5 (17.9&4) Other Revenues (Expenses) Intergovernmental $ 42,193 $ 26,456 $ 31,879 Miscellaneous 1,410 1,429 (2,312) Interest income (Expense) In. (543) 7Aq Total Other Revenues (Expenses) S 41.6%1 S 27,236 S 10.356 Net (Lose) 79) $ (11,8991 $ (7,628) Retained Earnings at beginning of year 7y q) 7 4 Retained Earnings at End of Year i CITY OF MONTICELLO Statement E-16 TRANSPORTATION FUND COMPARATIVE STATEMENTS OF CASH FLOWS For The Years Ended December 31, 1996 and 1995 Cash flows from operating activities: Net income Adjustments to reconcile net income to net cash provided by operating activities: Changes in assets and liabilities Increase (decrease) in accounts payable (Increase) decrease in accounts receivable Increase (decrease) in accrued expenses Net Cash (Used) by Operating Activities Net increase (decrease) in cash and cash equivalents Cash and Cash Equivalents at beginning of year Cash and Cash Equivalents at End of Year 70 1996 1995 $ (11,899) $ (7,628) 918 38 9,601 3q f5 ing) S (10.9091 S 11 11f) $ (10,909) $ (3,136) (1.154) $ (12.063) CITY OF MONTICELLO CEMETERY FUND BALANCE SHEET December 31, 1996 Afi= TOTAL ASSETS Statement E-17 1996 LIABILITIES AND EOUITY Current Liabilities Cash deficit $ 650 Accounts payable 75 Accrued expenses 7,Z Total Current Liabilities S 947 TOTAL LIABILITIES AND EQUITY S 0 71 CITY OF MONTICELLO Statement E-18 CEMETERY FUND STATEMENT OF REVENUES, EXPENSES AND CHANGES IN RETAINED EARNINGS - ACTUAL For The Year Ended December 31, 1996 1996 Actual Operating Revenues Grave site Bales $ 2,800 Excavation charges 1.210 Total Operating Revenues S 4.010 operating Exp ns s Salaries and employee benefits $ 356 Professional services 4,496 Supplies inq Total Operating Expenses s 4 957 Operating (Loss) $ (947) Retained earnings at beginning of year n Retained Earnings at End of Year S 1947) 72 CITY OF MONTICELLO Statement E-19 CEMETERY FUND STATEMENT OF CASH FLOWS For The Year Ended December 31, 1996 73 1996 Cash flows from operating activities: Net income (loss) before transfers $ (947) Adjustments to reconcile net income to net cash provided by operating activities: Increase (decrease) in accounts payable 75 Increase (decrease) in accrued expenses Net Cash (Used) by Operating Activities $ (ago) Net (decrease) in cash and cash equivalents $ (950 Cash and cash equivalents at beginning of year Cash and Cash Equivalents at End of Year 1—q 73 CITY OF M0NTICELL0 COMPUTATION OF LEGAL DEBT MARGIN December 31, 1996 Market valuation Debt limit - 2 percent of market valuation Total indebtedness subject to limitation Less: deductions allowed by law Assets in debt service funds available for payment of principal $ 922,729 Special assessment bonds 7,060,000 Tax increment bonds 1.285.000 Total Deductions Total Amount of Debt Applicable to Debt Limit LEGAL DEBT MARGIN rK.1 $ 9,765,000 Schedule i 1-422.1u.400 $ 9,041,168 1997 1998 1999 2000 2001 2002 2003 2004 TOTAL Original Amount Average rate of interest Payment dates CITY OF MONTICELL40 BONDED INDEBTEDNESS - GENERAL OBLIGATION BONDS December 31, 1996 General Obligation Refunding Bond Series 1991A Principal Interest $ 105,000 $ 2,100 $ 535.000 3.96731 February 1 February 1 August 1 75 General Obligation water System $ 70,000 $ 48,017 75,000 43,195 80,000 37,962 85,000 32,310 95,000 26,053 100,000 19,203 105,000 11,950 115. OQ42 6.99431 February 1 February 1 August 1 Schedule 2 General Obligation Sewer Interceptor Refunding Bond Series 1996C Principal Tn,.J1 ,Interest Principal Interest S 85,000 S 27,155 $ 260,000 $ 77,272 90,000 21,460 165,000 64,655 95,000 17,410 175,000 55,372 100,000 12,948 185,000 45,258 105,000 8,129 200,000 34,182 115,000 2,817 215,000 22,020 105,000 115.000 11,950 4.111 $ 540.000 t5 __ A4 �1R $ 1.42D.QQ0 314.820 4.88111 February 1 February 1 August 1 76 CITY OF MONTICELLO Schedule 3 BONDED INDEBTEDNESS - GENERAL OBLIGATION SPECIAL ASSESSMENT BONDS December 31, 1996 General Obligation General Obligation General Obligation General Obligation General Obligation sewer/water And street Bond Of 1977 Improvement Bend Pc rle. 19890 Im>provanment Band Perles 1990[ 1_ Improvement Bond Series 1291A interest I.Provement Bond Series 1992A Pr =UAl Interest 1997 PrineieAl $ 60.000 Isteresc $ B, 250 Prineloel $ 25,000 interest $ 6,390 PrinSin $ 25,000 interest $ 10,196 Prineioel $ 75.000 S 10,239 $ 75,000 S 24.230 1996 60.000 4.950 25,000 4,773 25.000 8.571 70,000 6.107 75,000 20,705 1999 60,000 1.650 30.000 2.970 25.000 6,921 70,000 2.047 75,000 17,030 2000 70.000 990 30,000 5.085 70,000 13.353 2001 30,000 3,068 70,000 9.695 2002 70.000 1,028 70,000 5,915 2003 70,000 1.995 2004 2005 2006 2007 TOTAL S 180.000 S 14.850 S 110.000 S 15.12] 5 165.000 5 ]4.869 S 215.000 S IB_]9] 5 505.000 5 92.923 Original Amount S ]-470.000 5 245.000 $ 250.000 $ 515.000 S 705.000 Average rate of interest 5.21% 6.61181 6.75061 5.72651 5.25251 Payment dates February 1 February 1 February 1 February 1 February I February 1 February 1 February 1 February 1 February 1 August 1 August 1 August 1 August 1 August 1 ..................................................................................................................................................................................... General Obligation General Obligation General Obligation Re!unding Improvement Improvement Bond Perles PriaclaAl 1994A Intereec Band !'erl., PtlnricAl 1995A Intcremt Bond Perles PrinelaAl 1996A Interest T-1 Prinel- --- 1997 1 S 115,000 S 77,710 5 245.000 S 177,873 5 70,000 5 51.585 S 690.000 5 126.477 1998 310.000 J1, 662 485.000 161.935 130.000 47.460 980,000 284.163 1999 120,000 29.2411 485.000 140,352 135,000 37.660 1.000,000 237,918 2000 120.000 24.547 480,000 118,400 135,000 31.404 065.000 193,859 2001 120,000 19,626 4d0,000 96,080 140,000 25.020 840.000 153,491 2002 125,000 14,389 185.000 73.160 60,000 20.225 770,000 114,717 2003 125.000 8,857 415,000 49,677 65,000 17,130 745.000 77,619 2004 130.000 1.023 245,000 31,630 70,000 17.720 445,000 48.37] 2005 245.000 19.]19 70,000 10,115 315.000 29,474 2006 255.000 6.566 75,000 6,30] 330,000 12.873 2007 80.000 2.160 80.000 2.160 TOTAL 5 965.000 S 171.104 S 1.890.000 S 874.952 S 1.010.000 P 251.966 S 7.060.000 S 1.4411.080 Original Amount 5 965.000 5 ].890.000 5 1.030.000 Average rate of interest 4.23121 4.96471 5.15031 Payment date. February I February 1 February 1 February 1 February 1 February 1 February 1 February 1 August 1 August 1 August I August 1 76 CITY OP MDNTICELLO BONDED INDEBTEDNESS - GENERAL OBLIGATION TAX INCREKENT BONDS December 31, 1996 TOTAL 5 285.000 s 1z1.27c® S1 12t s 2zs.000 s t27.2eB Original Amount S 150.000 s ISS r.000 i 260.000 Average rate of interest 8.28936 9.00471 7.25121 Payment dates February 2 February 3 February i February i February 1 February 1 August 1 August 1 August 1 77 General Obligation General Obligation General Obligation Tax Increment A Od of 19q_ 65 _ ---2i0 Tax increment of 1997fl Tax Increment Aflnd of Refunding 19! 1997 $ 25.000 5 20,{85 $ 25,000 S 1.125 5 10.000 ;IA $ 19.265 1998 30.000 19,075 15,000 I8. 190 1999 20,000 17,445 15,000 16,900 2000 20,000 15.805 15,000 I5, 603 2001 25.000 13.954 20.000 14,060 2002 35.000 11.891 20,000 12.775 2003 10.000 9,615 20.000 10. SOS 2004 10,000 7,125 25,000 8,610 2005 35,000 4,41025,000 6.410 2006 3007 35,000 1.470 70,000 10. see 7,983 1 77a TOTAL 5 285.000 s 1z1.27c® S1 12t s 2zs.000 s t27.2eB Original Amount S 150.000 s ISS r.000 i 260.000 Average rate of interest 8.28936 9.00471 7.25121 Payment dates February 2 February 3 February i February i February 1 February 1 August 1 August 1 August 1 77 Genera} Obi igation Tax Increment Bond series �940b -`Fal-_: rS"� S 40,000 S 13.745 45,000 10,012 a5, 000 6,006 a5, 000 2,002 s 17s. QaQ s 11.617 S 305.000 6.9920\ February i February 1 August 1 General Obligation Tax Increment S 15,000$ 5,660 151000 4,7}2 15000 3.710 20,.000 2,600 20,000 1,300 I.[•EZ1� tkk S 95-Q00 S 18 163 5 120.090 6.509 February 1 February I August I Central obligation Tax Increment Hand ss rlea 1992D Frincinai Interest S 10.000 6 3,575 10,000 2,925 ",000 2, 27S 10,000 1,625 10,000 975 10,000 325 64.444 5 ii_7a4 6.50\ February 3 February 3 August 1 78 General Obligation Tax Increment Refunding Bond 6e ri ee 19968 P;itfcjgAl�. Int ertat S 3}5.000 S 18,613 135,000 12,231 125,000 6765 65,000 1,,976 S a50. Oao 4.6983\ February i February } August 1 Schedule 4 Ynrel Pzinei�al Interest S 230,000 S 62,546 230,000 67,140 230,000 51,131 195,000 39,611 75.000 30,309 65,000 24,676 50,000 20,200 55,000 I5, 735 60,000 14.620 65.000 30.000 5,452 1 320 CITY OF MONTICELLO TAR LEVIES TO RETIRE BONDED INDEBTEDNESS December 31, 1996 General Oenerel General General General General General General General General Obligatlan Obllget ion Obligation Obllget ion Obligation Obligation Obligation Obligation Obligation usligation Bate. SyaLam Ta: :ncreaeIt nater yst— Irprovexnt Tea Increment Iaprovement lsprovement Improvement Ilprovement Year of Collec• Improvement Bond Series Bond Series Bond Series Bond Series Bond Series Bond Series Band Series Bond Series Bond Series Lew tion Bond of 1977 19118 1919A 1929B 1920C 19900 1992A 1996A 1995A 1996A 1996 1997 5 I,SBO S 126,763 S 75,577 $ 72,600 S 23,160 $ 9.898 $ 11,865 1 131,155 $ 198.279 S 15.800 1997 1998 8.655 126,717 ]6,177 26,611 77,111 907 12,919 I]8, 566 167,678 75,000 1990 1999 176,255 )2,811 26,813 76,975 7,576 136.797 159.177 73.500 1999 7000 170.597 76,691 75.056 8,160 130,916 159,686 77,000 2000 7001 178.666 76,871 27,668 8,597 137,0)6 169,952 500 2001 2002 126,712 77.0)7 1,902 127,690 166,20: 6,700 2002 20 0) 129,38• 76.666 127,998 166.755 12.700 2003 2009 36.176 160.593 13.000 70062005 37.076 165,206 18.600 2005 2006 36.711 2].700 Schedule 5 General Obligation Serer Interceptor Refunding Bonds Series 1996C $ 117,800 117,100 118,100 118.600 173,800 TOTAL S 1].2]5 S 895.272 S ]69.066 S 73.626 5 120.618 $ 5.105 S 57.670 5 922.9]1 S 1.652.069 S 316.500 5 595.600 • These tax levies are for tax increment financing projects. The levies have not been made in the past and will only be made in the future if tax increment revenue is insufficient to meet principal and interest payments. 79 i I ys Crr7/ Pudk• I W Man Ikhr. Sldte 1 611 19WW R,. P . 9,n 117. Sade 1 T � At nb and I M&II0. MY 55713 (612) 692.1 ,62 I M—kdb, M\ I1 ss.%2 (611) 2Y55B', I iKJ/V� aus/nt fouufmnb b5 (:C=d A%e. Eis P ll, Bm 338. SWu B R, Mklud. MNS1,376 (617)19; 7118 I8iC Associates A AUDITOR'S REPORT ON LEGAL COMPLIANCE To the Mayor and City Council City of Monticello, Minnesota We have audited the general purpose financial statements of the City of Monticello as of and for the year ended December 31, 1996, and have issued our report thereon dated May 30, 1997. We conducted our audit in accordance with generally accepted auditing standards and the provisions of the Minnesota Legal Compliance Audit Guide for Local Government, promulgated by the Legal Compliance Task Force pursuant to Minn. Stat. 6.65. Accordingly, the audit included ouch teats of the accounting records and such other auditing procedures as we considered necessary in the circumstances. The Minnesota Legal Compliance Audit Guide for L_cal Government covers five main categories of compliance to be tested: contracting and bidding, deposits and investmenta, conflicts of interest, public indebtedness, and claims and disbursements. Our study included all of the listed categories. The results of our testa indicated that, for the items tested, the City of Monticello complied with the material terms and conditions of applicable legal I provisions, except as described below. Further, for the items not tested, based on our audit and the procedures referred to above, nothing came to our attention to indicate that the City of Monticello had not complied with such legal provisions except as already noted. This report is intended solely for the use of the City of Monticello, Office of the State Auditor and other state agencies, and should not be used for any other I purpose. This restriction is not intended to limit the distribution of this report, which is a matter of public record. May 30, 1997 Mru06 Borden Carlson 6 Associates P.A. Certified Public Accountants 80