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1998 Audit Reportff EV--lj cny or PEWrTcmw - .. 1-1:.&m.,s AMILIM Flligkli[:M YeEw Etdad DBoember 31, iggg Gm,s & l Bof&m ab� Car�m Aswdates CITY OP MONTICELLO COMPREHENSIVE ANNUAL FINANCIAL REPORT Year Ended December 31, 1448 i CITY OF MONTICELLO TABLE OF CONTENTS 2. INTRODUCTORY SECTION Miscellaneous Data ZZ. FINANCIAL SECTION Paas Independent Auditor's Report on Financial Statements 1 A. Goneral RU=aa Financial Statements rxhibit Combined Balance Sheet - All Fund Types • + and Account Groupe 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 I 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 7-24 grwromnnr B. c+nint- —A individual Fund statements pmh General Fund: Statement of Revenues, Expenditures and Changes in Fund Balance - Budget (GAAP Basis) and Actual A-1 25-27 Special Revenue Funds: Combining Balance Sheet B -I 28-29 1 Combining Statement of Revenues, Expenditures 1 and Changes in Fund Balances 1 B-2 30-31 Shade Tree Fund: Statement of Revenues, Expenditures and Changes in Fund Balance - Budget (GAAP ' Basis) and Actual B-3 32 ' Orderly Annexation Pund: Statement of Revenues, Expenditures and Changes in Fund Balance - Budget (GAAP Basis) and Actual B-4 33 ` Capital Outlay Revolving Fund: Statement of Revenues, Expenditures and Changes in Fund Balance - Budget (GAAP ' Basis) and Actual B-5 34 CITY OF MONTICELLO TABLE OF CONTENTS B. Combining and Individual Fund c a m n a (Continued) Statement Library Fund: Pale Statement of Revenues, Expenditures and Changes in Fund Balance - Budget (GAAP Basis) and Actual B-6 35 Housing and Redevelopment Authority Fund: Statement of Revenues, Expenditures and Changes in Fund Balance - Budget (GAAP Basis) and Actual B-7 36 Urban Development Action Grant Fund: Statement of Revenues, Expenditures and Changes in Fund Balance - Budget (GAAP Basis) and Actual B-8 37 Economic Development Authority Fund: Statement of Revenues, Expenditures and Changes in Fund Balance - Budget (GAAP Basis) and Actual B-9 38 Water Improvement Fund: Statement of Revenues, Expenditures and Changes in Fund Balance - Budget (GAAP Basis) and Actual B-10 39 Sewer Improvement Fund: Statement of Revenues, Expenditures and Changes in Fund Balance - Budget (GAAP Basis) and Actual B-11 40 Central Minnesota Initiative Fund: Statement of Revenues, Expenditures and Changes in Fund Balance - Budget (GAAP Basis) and Actual B-12 41 Economic Recovery Grant Fund: Statement of Revenues, Expenditures and Changes in Fund Balance - Budget (GAAP Basis) and Actual B-13 42 Storm Sewer Access: Statement of Revenues, Expenditures and Changes in Fund Balance - Budget (GAAP Basis) and Actual B-14 43 Debt Service Funds: Combining Balance Sheet C-1 44-46 Combining Statement of Revenues, Expendi- tures and Changes in Fund Balances C-2 47-49 Capital Projects Fund: Combining Balance Sheet D-1 50-51 Combining Statement of Revenues, Expendi- tures and Changes in Fund Balance D-2 52-53 i ICITY OF MONTICELLO TABLE OF CONTENTS IB. Cnmhining and Ind ementa (Continued) I Proprietary Funds: Statement Pare Combining Balance Sheet E-1 54 I Combining Statement of Revenues, Expenses and Changes in Retained Earnings E-2 55 Combining Statement of Cash Flows E-3 56 ISewer Fund: Comparative Balance Sheets E-4 57 I Comparative Statements of Revenues, Expenses and Changes in Retained Earnings - Budget (GAAP Basis) and Actual E-5 58 IComparative Statements of Cash Flows E-6 59 Water Fund: Comparative Balance Sheets I,- E-7 60 Comparative Statements of Revenues, Expenses and Changes in Retained Earnings - Budget (GAAP Basis) and Actual E-8 61 - Comparative Statements of Cash Flows E-9 62 Liquor Fund: _ Comparative Balance Sheets E-10 63 Comparative Statements of Revenues, Expenses Iand Changes in Retained Earnings E-11 64 Comparative Statements of Cash Flows E-12 65 I Comparative Statements of Revenues and Expenses - Budget (GAAP Basis) and Actual E-13 66 Transportation Fund: I Comparative Balance Sheets E-14 67 Comparative Statements of Revenues, Expenses I and Changes in Retained Earnings - Budget (GAAP Basis) and Actual E-15 68 Comparative Statements of Cash Flows E-16 69 Cemetery Fund: Comparative Balance Sheets E-17 70 Statements of Revenues, Expenses and Changes in Retained Earnings - Actual E-18 71 Comparative Statements of Cash Flows E-19 72 CITY OF MONTICELLO TABLE OF CONTENTS III. SUPPLEMENTAL INFORMATION Bonded Indebtedness - General Obligation Bonds Bonded Indebtedness - General Obligation Special Assessment Bonds Bonded Indebtedness - General Obligation Tax Increment Bonds General Obligation Note Bonded Indebtedness - Public Project Revenue Bonds Tax Levies to Retire Bonded Indebtedness Auditor's Report on Legal Compliance Required Supplementary Information Year 2000 Issue Unaudited S '�shad"I. Pace 1 73 2 74 3 75 i 76 5 77 6 78 79 80 CITY OF MONTICELLO MISCELLANEOUS DATA Official, - 1998 Term Mayor Bill Fair 12/31/98 Council Member Brian Stumpf 12/31/98 Council Member Clint Herbst 12/31/98 Council Member Roger Carlson 12/31/00 Council Member Bruce Thielen 12/31/00 Clerk -Treasurer and Administrator Rick Nolfsteller Appointed f,:•rll •J Puh24' IM Alin Dmc, 1WIr 1 hl 1 C'dnw A1., P(). IYa 11 i. AWIc 1 T AnnunlannuM Nuf44r, M\5511y (h121 /+NL1;A1 M,mlk clYr, M\55 M.1(61I)29S SN',I Nurine:( furuulmn6 -n5 (:enlnl Arc. Fia, PII da 3.% SW a p� ^Y V. Mkhxl, MN S51'h (612) I9' 21 IN &-A (S (ZYtt9 r� INDEPENDENT AUDITOR'S REPORT ON FINANCIAL STATEMENTS To the 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, 1998, 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, 1998, 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. S BORDEN CARLSON 6 ASSOCIATES P.A. Certified Public Accountants June 16, 1999 ICITY OF MONTICELLO Exhibit 1 COMBINED BALANCE SHEET - ALL FUND TYPES AND ACCOUNT GROUPS December 31, 1998 With Comparative Totals at December 31, 1997 IPROPRIETARY r:nu67n. RMrT1 i P10+n lYPHC FUNp TYPES ACCOUNT GROUPS TOTAL IXF?10 ONLYI General General ISpecial �S general Debt lar- Seire Al" Capital ailiecte L=t ZMX a Fixed Long -Term Assets Debt 1998 1997 Cash and investments S 1.717,707 5 5,557,117 S 5,675,156 S 2.652,704 S 1,740,266 S 19,162,950 $ 14,001,336 Recelvables Accounts IS1,374 26,291 163,784 177 269.725 631,206 656,425 Special assessments - deferred 2.655 264,466 1,600,611 36,183 1,703.948 2,715,766 Special assessment. - delinquent 6,466 71,866 115,996 1,718 161.016 290,265 Due from other fund. 102,000 102,000 105.000 Land held for resale 66,817 665,394 512,211 812,501 Long-term receivable 11.098 354,397 765,495 661,411 Inventory 249.868 219,856 726.660 P rap. id a y -.n... 23.296 139 7,287 30,772 76,812 General fixed ..Bete S 16, ie 1, 665 16,767,445 1:,4:1,657 Property and equipment (net of accumulated depreciation) 21,917,242 21.917,262 10,583.890 Amount available in Debt Se rvlce Funds 5 5.BS6,791 5,856,791 3,801,781 Amount to be provided for retire- ment of general long-term debt 21.587.909 21.587.909 16.376.618 TOTAL ASSETS 5 ]_511.596 5 6.601.091 5 1.810.976 2.657. Il6 S 21.221.889 S 16.767.665 S ]0.661.700 S 92.018.815 S 61.025.752 A°1�_1T1E9 C.nh deficit . $ 1,100 $ 1.268,251 $ 1,778 $ 1,770,769 S 6)8,709 Account. Payable S 155, 044 6,293 S 7,119 334,124 39,I11 577,661 1.079.176 Contract. payable 149,761 149.761 48,414 Other accrued expenses 340,631 027 107.977 115.795 329,657 Due to ocher funds 102,000 402.000 105.000 Deferred revenue 11,171 706,159 1,982,036 1,111,292 10.901 3,719.509 7.550,717 General obligation bond. payable 5 1.010.000 1,010,000 1.160.000 General oDligetlon tax increment I bonds 875, 0"625.000 1,055,000 General obligation notes payable14.21 16,259,]00 16.259,700 10,018.101 Special assessment bond. payable 6,965.000 6,965,000 7,965,000 Public pr0]ecC revenue bonds ]_185.Q00 .1 ]85.000 I_ Total Liabilities S 507.596 S 111.159 $ 1.961-165 S ].161.128 S 165.610 S J0.141.700 S 16.699.978 S 25.710.099 FUND HmI1TY I- Contributed capital S 21,158.9309,009.964 S S Investment In general fixed assets 5 16.767,615 16,767,645 16.611.657 Retained earnings Unreserved 2,880,349 2,080.749 2.411,576 Fund Balance Reserved for noncurrent loans - receivable 5 11,098 S 154,595 765,693 481,510 Reserved for fixed assets held for re..le 66.617 66,817 66,817 Reserved for debt .e tutee $ 5,656.791 5,856.791 3.001,783 Unreserved Designated for subsequent year-. expenditures 1,987,454 5 (310,292) 1.677,162 7,110,717 I Undesignated 1.008.148 5.567.222 6.575.670 4.149.671 Total Fund Equity S 1.007.000 S 5.988.614 S 5.856-791 S (310.2921 5 21.0]9.279 S 16 767 145 S 55.318.857 i 18.295.651 TOTAL LIABILITIES AND FUND 1 EQUITY a 1.511.596 S 6.10]_097 S 7.860.976 S S.B51. 136 5 24.221.889 S 16.767.445 5 10.166.700 92 018 8-15 1 66 025 752 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, 1998 With Comparative Totals For The Year Ended December 31. 1997 Revenues Taxes Collections on special assessments Licenses and permits Intergovernmental Charges for service Miscellaneous Total Revenues Expenditures General government Public aafety Public works Sanitation Health and welfare Parke 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 Sale of land Reimbursements of project cost Transfers in Transfers out Grant reimbursement Total Other Financing Sources (Uses) Excess of Revenues and Other Sources over Expend - 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. J rx,vRRNMENT�_�„L mTND TYPES Special Debt Capital General Revenue Service Prole is $ 2,337,095 $ 1,012,582 $ 11099,917 108,657 1,033,133 422,633 405,295 134,713 1,575,339 618.447 298.661 _233.968 S 114.612 S 3.918.183 S 2.995.239 .i. 2.367.016 S 114.612 $ 1,337,777 $ 282,000 677,474 768,587 300,184 60,738 409,429 213,026 17,654 366,740 $ 7,119,982 S 3.767.215 S 666.402 S 150.968 S 2.328.837 $ 12,463 $ (84,300) (52.049) S (84.300) S (39.586) $ 66,660 $ 2,289,25I 2,940,332 3,699,383 $ 1,499,917 $ 658,982 $ 4,241,299 280,290 74,276 1,735,886 617,222 114,165 (659,550) S 1.556.494 S 5.506.076 $ 2,055.008 $ (1,499,294) 3,801,783 1,189,002 Exhibit 2 TOTALS (MEMO ONLY) 1998 1997 $ 4,449,594 $ 3,647,268 1,141,790 728,519 422,633 253,343 405,295 427,517 1,710,052 1.265.688 S 9.395.052 510,136 L491.427 $ 1,619,777 5_7.058.21❑ S 1.123,474 677,474 1,023.884 768,587 861,258 300,184 237,969 60,738 63,318 409.429 147,202 230,680 191,972 7,486,730 10,951,493 1,499,917 368.587 11180.000 515.989 S 16.296.5 9 S 13.422.103 S (4.027.051) $ 4,900,281 S 19,23a.34 $ 11,587,376 354,566 1,735,886 743,850 1,618,545 (743,850) (52.049) S 6.938.684 (1,618,545) S 11 $ 2,911,633 -587,376 S 2,911.633 11,630,500 9,351,473 S 3.007.000 J, 5.9a8.634 S 5.856.791 S (310.292) i5 14.542.133 CITY OF MONTICELLO COMBINED STATEMENT OF REVENUES, EXPENSES AND CHANGES IN RETAINED EARNINGS - ALL PROPRIETARY FUND TYPES For The Years Ended December 31, 1998 and 1997 Operating Revenues Charges for services Grose 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 (Loss) Non -Operating Revenues Interest income Other Total Non -Operating Revenues Net Income (Lose) Before Transfers Transfers (out) Net Income (Lose) Retained earnings at beginning of year Prior period adjustment 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 See accompanying Notes to Financial Statements. 4 Exhibit 3 PROPRIETARY FIND TYPES Enterprise Enterprise 199E 1997 $ 1,090,530 $ 1,023,229 541.227 494.379 S 1.631.757 S 1.507.609 $ 339,891 $ 315,930 558,966 531,747 81,377 81,502 19,446 19,007 66,033 58,771 1,273,884 98.456 S 2.438.053 S (806.296) 866,858 100.266 S 1.974.091 S (466.473) $ 74,172 $ 56,505 Al 4x9, 67.450 S 155. O;u S 121.955 $ (650,635) $ (342,518) (134.000) R $ (784,635) $ (342,518) 2,413,536 1,849,021 70,000 1 2RI 44.a a37-033 S 2.Rx0. 149 S 7 411 91j1 $ 9,809,964 $ 9,893,468 12,600,414 753,529 (1.251.448) (x17.031) 5 21.15x.430 S 9.809.964 CITY OF MONTICELLO Exhibit 4 COMBINED STATEMENT OF CASH FLAWS - ALL PROPRIETARY FUND TYPES For The Years Ended December 31, 1998 and 1997 PROPRIETARY FUND .TYPES Enterprise Enterprise 1998 1997 Cash flows from operating activities: Net income (lose) before transfers $ (650,635) $ (342,518) Adjustments to reconcile net income to net cash provided by operating activities: Depreciation 1,273,884 866,858 Changes in assets and liabilities (Increase) decrease in accounts receivable (46,958) (1,775) (Increase) decrease in inventory (25,208) (23,160) (Increase) decrease in prepaid expenses 11587 440 (increase) decrease in special assessments receivable - deferred (11850) (6,952) (Increase) decrease in special assessments receivable - delinquent 2,645 (1,604) Increase (decrease) in accounts payable (25,170) 21,900 Increase (decrease) in accrued expenses 12,278 13,110 Increase (decrease) in due to other funds Increase (decrease) in deferred revenue 1795) 8.556 Net Cash Provided by Operating Activities S 539.779 S 534,855 Cash flows used in noncapital financing activities: operating transfers out S (134.000) Cash flows from capital and related financing activities: Capital expenditures Equipment $ (357) $ (3,196) Building and improvements t6.466) (9.031) Net Cash (Used) in Financing Activities 8 (6.923) S (11.227) Net increase (decrease) in cash and cash equivalents $ 3981955 $ 523,628 Cash and cash equivalents at beginning of year 1.339.973 916.345 Cash and Cash Equivalents at find of Year S 1.?38.929 5}.339.973 Non -Cash Transactions: Contributed Assets Land, Buildings and Improvements S 12.600.434 S 753.524 Total Non -Cash Transactions 12. 00.414 S 751 524 See accompanying Notes to Financial Statements. 9 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, 1998 Revenues Taxes Special assessments Licensee and permits Intergovernmental Charges for service Miscellaneous Total Revenues Expenditures General government Public safety Public works Sanitation Health and welfare Parke and recreation Community development Capital projects Total Expenditures Excess of Revenues over Expenditures Other Financing Sources (Uses) Transfers in Transfers out Grant reimbursement Total Other Financing Sources (Uses) Excess of Revenues and Other Sources over Expenditures and Other Uses Fund Balances at Beginning of Year FUND BALANCES AT END OF YEAR See accompanying Notes to Financial Statements. 6 Budget - $ 2,553,250 185,450 120,000 110,000 291.295 S 3.259.995 $ 993,835 552,930 715,735 263,100 63,695 358,240 312,460 $ -a- GENERAL' LUD Variance Favorable Actual 1 h,favgr bl ) $ 2,337,095 $ (216,155) 422,633 237,183 405,295 265,295 134,713 24,713 618.447 327.152 S 3.918.183 S 658.188 Exhibit 5 SPECIAL REVENUE FUNDS Variance Favorable Budget 8ctual (Unfavorable) $ 982,806 $ 1,012,582 $ 29,776 30,500 108,657 78,157 445,600 1,575,339 1,129,739 147.465 798 6ryj ]51.79( S 1.606.371 S 2.995.239 S 1.388.868 $ 1,337,777 $ (343,942) $ 236,495 $ 282,000 $ (45,505) 677,474 (124,544) 768,587 (52,852) 300,164 (37,084) 60,738 2,957 409,429 (51,189) 213,026 99,434 2,120 17,654 (15,534) 770.000 366.748 403.252 S 3.767.215 S (507.220) S 1.008.615 S 666.402 S 342.21] S 150.968 S 150.968 14 597.756 S 2.328.837 S 1.731.081 $ 211,718 $ 211,718 $ (84,300) $ (84,300) $ (198,685) (199,255) (570) (52.049) (52.049) S 184.300) S (R4.100) S (198.685) 5 (39.586) S 159.09.2 i 0- $ 66,668 S 66.668 S 399.071 $ 2,289,251 S 1.890.180 2.940.332 3.699. 3B3 S 3.007.000 S 5.988.634 CITY OF MONTICELLO NOTES TO FINANCIAL STATEMENTS December 31, 1998 The accounting policies of the City of Monticello, located in Wright county in Minnesota, conform to generally accepted accounting principles as applicable to governmental unite. The following is a summary of the more significant policies: A. Reporting 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 wherebv state aide flow to the Association and tax levies are determii—: by the Association and reviewed by the City. The Association pays benefits directly to its members. a. Basin of Presentation--Fun_d Accounting The operations of the City are recorded in the following fund types and account groups: CITY OF MONTICELLO NOTES TO FINANCIAL STATEMENTS December 31, 1998 Note I Summary of Significant Ar o sting Pnlicies - Continued B. Basis of Presentation --Fund Accounting - Continued Governmental Fund Types 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. The following are the City's governmental fund types: General Fund --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. 52ecial Revenue Fuada--Special revenue funds are used to account for the proceeds of specific revenue sources that are legally restricted to expenditures for specified purposes. Debt Service Fund- -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 costs. capital Projerta +nds-.Capital projects funds are used to account for financial resources to be used for the acquisition or construction of major capital facilities (other than those financed by proprietary funds and trust funds). Proprietary Fund TvM 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 types Fn eWrine Fun,da --Enterprise funds are used to account for operations (a) that are financed primarily through user charges, or (b) where the governing body has decided that determination of net income is appropriate. Fiduciary Fund Tvnea Trust and Agency Fund—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 of operations. Account Grouns General Fixed Anget Account -ro --This account group is used to account for all fixed assets of the City, other than those accounted for in proprietary and trust funds. CITY OF MONIICELLO NOTES TO FINANCIAL STATEMENTS December 31, 1998 Note i Summary of _ciamific n[ Accounting Poli i a - Continued B. Basis of Pre4entatioa--FL d Ac[nL tins - Continued Account •ro1nn - Continued General L=ng-T rm n2ht Account .ro+g--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. Banis 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. 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 criteria 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. D. Budgets And Buda ary Ac—cantina 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, 1998 Note 1 $ _ -, of - Continued D. gudqors and Budgetary A o,n ins - 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. g, rash � d Invenimente Cash balances from all funds are combined and invested to the extent available in certificates of deposit and other allowable invest- ments. Earnings from inveotments 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. Rpi-1 n m n n 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. rnventorien Inventories are valued at lower of cost (first -in, first -out) or market. 10 CITY OF MONTICELLO NOTES TO FINANCIAL STATEMENTS December 31, 1998 Note 1 summary of cignific nt A ounring PoligiiA - Continued H. General Fixed Assets 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. I. Propgrty Plant and Eauinment - ProRrigtary Fund,g Property, plant and equipment used by proprietary funds are stated at cost or estimated historical cost. Contributed fixed assets are recorded at estimated historical cast. Contributed fixed assets are recorded at estimated fair market value at the time received. Net interest costa are capitalized on projects during the construction period. Depreciation is provided using the straight-line method over a 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. J. Fund Bolan a 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 and Sick Pav 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 NOTES TO FINANCIAL STATEMENTS December 31, 1998 Note 1 ,M=ary of qianikicant Accnunting Policies - Continued K. vacation and Sick Pay - 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 Statementa Total columna 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. Comoarative 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 srnwardnhin.. Cotnoliance and Accountability A. D fi i ��d Bal n Deficit fund balances as of December 31, 1998, are as follows: Capital Project Funds Klein Farms 3rd $ (2,440) Bondus Watermain Extension (1,363) Pathway Project (238) High School Sewer (32,961) Resurrection Church Sewer System and Water Main (50,500) Pathways Improvement (1,616) Community Center (124,361) 7th Street Expansion (830,026) Hwy 25 MN DOT Imp (305,476) Bridge Park North Walnut (6,647) Co. Road 118 197.178) 5 (1.452.766) Special Revenue Funds Library S 11.173) 12 CITY OF MONTICELLO NOTES TO FINANCIAL STATEMENTS December 31, 1998 Note 1 Summary of _Significant Accounting Policies - Continued K. vacation and Sick Pay - 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 Column on o h'n d Statements Total columna 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 ouch 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 Atew,rd,hin C—lian and A o�n hility A. Deficit Fund sal—con Deficit fund balances as of December 31, 1998, are as follows: Capital Project Funds Klein Farms 3rd S (2,440) Bondus Watermain Extension (1,363) Pathway Project (238) High School Sewer (32,961) Resurrection Church Sewer System and Water Main (50,500) Pathways Improvement (1,616) Community Center (124,361) 7th Street Expansion (830,026) Hwy 25 MN DOT Imp (305,476) Bridge Park North Walnut (6,647) Co. Road 118 (07.138) Special Revenue Funds S (1.452.766) Library L_""72) 12 CITY OF MONTICELLO NOTES TO FINANCIAL STATEMENTS December 31, 1998 Note 2 Stewardship. Compliance and A co+ntability - Continued A. D fi i EUad aal aces - Continued 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. B. Rx -Rn of ndi Over Budget Expenditures Over 9xrendituran Budget Budges General Fund $ 3,767,215 $ 3,259,995 $ 507,220 Housing and Rede- velopment Authority 284,979 203,870 81,109 Library 44,745 32,295 12,450 Sewer Improvement Fund 2,896 0 2,896 Economic Development Authority Fund 17,654 2,120 15,534 Water Fund 486,205 425,325 60,880 Sewer Fund 1,627,552 1,180,605 446,947 Liquor Fund 236,323 223,695 12,628 Not, 3 Cash and Inv n m ntn Cash balances of City funds are combined (pooled) and invested to the extent available in various investments authorized by state statutes. Each fund's portion of this pool (or pools) is displayed on the financial statements as "Cash and investments". For purposes of identifying risk of investing public funds, the balances and related restrictions are summarized below: A. Qgpoaitn - Minnesota statutes require that all deposits with financial institutions must be collateralized in an amount equal to n0% of deposits in excess of FDIC or FSLIC insurance (1404 if collateralized with notes secured by first mortgages). The carrying amount of the City's deposits with financial institu- tions was $2,034,543 and the bank balance was $2,528,850. The bank balance is categorized as follows: Insured by FDIC or FSLIC insurance $ 2,057,361 Covered by collateral assigned to City and not redeposited in the financial inotitu- tion furnishing the collateral 471.487 Total Bank Balance S 2.528.850 13 CITY OF MONTICELLO NOTES TO FINANCIAL STATEMENTS December 31, 1998 Cash 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 Category Amount Value Money Market Funds 1 $ 207,349 $ 207,349 Commercial Paper 1 4,399,603 4,399,603 Minnesota Municipal Bonds 1 106,518 108,518 U.S. Securities 6 GOveIn- mental Agency Securities 1 10.984.627 10.904.627 Total Investments 15.700.097 5 15.700.097 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 31, 1998 General fixed assets as of December 31, 1998, are as follows; Beginning Ending Land $ 1,979,583 $ $47,375 $ 2,526,958 Buildings 11995,889 11995,889 Equipment 1,933,047 173,593 2,106,640 Other Improvements 8.533.134 1.604.824 10 137-958 Total A. pe in d R—fir Pension Plana - Statewide Plan D a zin inn 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). VERA 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 Plan members are covered by Social Security and Basic Plan members are not. All new members must participate in the Coordinated Plan. All police officers, fire-fighters and peace officers who qualify for membership by statute are covered by the PEPFF. PERA provides retirement benefits as well as disability 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 highest average salary for any five successive years of allowable service, age and years of credit at termination of service. Two methods are used to compute benefits for PERF's Coordinated and Basic Plan members. The retiring member receives the higher of a step -rate benefit accrual formula (Method 1) or a level accrual formula (Method 2). Under Method 1, the annuity accrual rate for a Basic Plan member who retired before July 1, 1997 is 2 percent of average salary for each of the first 10 years of service and 2.5 percent for each remaining year. The annuity accrual rate for Basic members who retire on or after July 1, 1997 is 2.2 percent of average salary for each of the first 10 years of service and 2.7 percent for each remaining year. For a Coordinated Plan member who retired before July i, 1997, the annuity accrual rate is i percent of average salary for each of the first 10 years and 1.5 percent for 15 CITY OF MONTICELLO NOTES TO FINANCIAL STATEMENTS December 31, 1998 Note 6 pension Plans - Continued each remaining year. For Coordinated members who retire on or after July 1, 1997, the annuity accrual rates increase by 0.2 percent (to 1.2 percent of average salary for each of the firet 10 years and 1.7 percent for each remaining year). Under Method 2, the annuity accrual rate is 2.5 percent of average salary for Basic Piar. members and 1.5 percent for Coordinated Plan members who retired before July 1, 1997. Annuity accrual rates increase 0.2 percent for members who retire on or after July 1, 1997. For PEPFF members, the annuity accrual rate is 2.65 percent for each year of service for members retiring before July 1, 1997. Effective July 1, 1997, the annuity accrual rate is increased to 3.0 percent. For all PEPFF members and for PERP members whose annuity is calculated using Method 1, 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 in 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 the 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. PERA issues a publicly available financial report that includes financial statements and required supplementary information for PERF. That report may be obtained by writing to PERA, 514 St. Peter Street 0200, St. Paul, Minnesota, 55102 or by calling (651) 296-7460 or 1-800-652-9026. Fundina Poli Minnesota Statutes Chapter 353 sets the rates for employer and employee contributions. These statutes are established and amended by the state legislature. The City makes annual contributions to the pension plans equal to the amount required by state statutes. PERF Basic Plan members and Coordinated Plan members are required to contribute 8.75% and 4.75%, respectively, of their annual covered salary. The City of Monticello is required to contribute the following percentages of annual covered payroll: 11.431 for Basic Pian PERF members. The City's contributions to the Public Employees Retirement Fund for the years ending December 31, 1998, 1997 and 1996 were $62,091, $47,448 and $36,301, respectively. 16 CITY OF MONTICELLO NOTES TO FINANCIAL STATEMENTS December 31, 1998 Note 6 p nnAion Plann - Continued B. City of MonLicollo Fire Relief Asaociation Plan D•�ntion 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 $1,925 per year of active service in the fire department and Association with loot 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 So 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 would receive $1,925 per year of service. The City passes through state aids allocated to the plan in accordance with enabling state statutes. Related Party inve m u s During 1998 and as of December 31, 1998. the Association held no securities issued by the City or other related parties. Funding staga and Pr,ogr an 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 R Qpired and Made 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 1998 17 CITY OF MONTICELLO NOTES TO FINANCIAL STATEMENTS December 31. 1998 Noce 6 pension Plans - Continued Ten -Year Historical Trend Information Ten-year historical trend information related to the pension plan is not maintained by the Association. Note 7 Changsn in Lona -Term Debt The following is a summary of long-term debt transactions for the year ended December 31, 1998: Payable Payable Beginning End of Year Additio. Payments of Year General obligation bonds S 1,160,000 5 515,000 S 665,000* 5 1,010,000 General obligation notes 10,018,401 4,241,299 14,259.700 Special assessment debt with govern- mental commitments 7,945,000 980,000 6,965,000 General obligation tax increment bonds 1,055,000 230,000 825,000 Public project revenue bonds 7.385.00n 7-38S-000 TOTAL 520.178.401 512.141.240 S 1.875.000 S 30.444.700 + Includes $500,000 of refunding for the General Obligation Water System Bond Series 1988B to be paid in full on February 1, 1999, by the General Obligation Water System Refunding Bonds, Series 19988. Bonds and notes payable at December 31, 1998, are comprised of the following individual issues: Initial Average Amount Maturity Interest Outstanding D s rin ion Issued Date Rare Pr ncio l General Obligation Bonds: 19886 Improvement Sonde 1,100,000 Feb. 2004 6.99431 $ B0, 000• 1996 Refunding Bonds 590,000 Feb. 2002 4.8811% 415,000 19988 Refunding Bonds 515,000 Feb. 1997 3.99821 515.000 Total General obliga- tion Bonds 5 1 OiO 000 • $500,000 refunded by General Obligation Water System Refunding Bonds, Series 19988. 18 I CITY OF MONTICELLO NOTES TO FINANCIAL STATEMENTS December 31, 1998 Note 7 changes in Long -T rm DPb (Continued) Initial Average Description Amount Issued Maturity Date Interest Outstanding Rate Principal General Obligation Tax I Increment Bonds: 1985 Tax Increment Bonds 350,000 Feb. 2006 8.2893% $ 220,000 IMA Tax Increment Bonds 260,000 Feb. 2007 8.8708% 200,000 1990D Tax Increment Bonds 305,000 Feb. 2000 8.99281 90,000 1992 Tax Increment Bonds 120,000 Feb. 2002 6.51 65,000 1992D Tax Increment Bonds 75,000 Feb. 2002 6.5% 40,000 19968 Tax Increment Refund- ing Bonds 450,000 Feb. 2000 4.69834 210.000 Total General Obligation Tax Increment Bonds S 925.000 lSpecial Assessments Bonds: 1977 Sever, Water and Street Bonds 1,470,000 Feb. 1999 5.2100% $ 60,OOC 19898 Improvement Bonds 245,000 Feb. 2000 6.611B% 60,000 1990C Improvement Bonds 250,000 Feb. 2002 6.75062% 115,OOC 1991A Improvement Bonds 515,000 Feb. 1999 5.72651 70,000 1992A Improvement Bonds 705,000 Feb. 2003 5.2525% 355,OOC 1994A Refunding Bonds 965,000 Feb. 2004 4.2312% 740,000 1995A Improvement Bonds 1,890,000 Feb. 2006 4.9647% 1,160,000 1996A Improvement Bonds 1,030,000 Feb. 2007 5.15031 830,000 1997A Improvement Bonds 1,575,000 Feb. 2004 4.3905% 1.575.000 Total Special Assessment Bonds 5 6.965.000 •I General Obligation Notes 1997 Wastewater Treatment Note 14,700,000 Aug. 2018 4.080% ; 14.259.700 Public Project Revenue Bonds 1998 Temporary I 7,385,000 Feb. 2001 4.49471 S 7.385.000 The annualrequirements to amortize all long-term debt outstanding as of December 31, 1998, including interest of $9,068,596 are as follows: Xe" 1999 $ 3,113,373 2000 3,483,564 2001 10,396,083 2002 2,710,060 2003 2,245,049 2004 and thereafter 17.97x.167 5 ]9.943.296• 19 CITY OF MONTICELLO NOTES TO FINANCIAL STATEMENTS December 31, 1998 Note 7 rhaanggs in Longterm Debt (Continued) + Annual requirements match the bond schedules, they differ from the changes on long term debt by the remaining proceeds to be withdrawn from the 1997 Wastewater Treatment Notes, $430,000. 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 I-- Dace C—.rcial Rusineen 1Gr10 :5t11C Bmc,,Qt 01/30/73 Northern States Power 30 yrs Pollution Control Bonds $5,000,000 $4,000,000 04/04/73 Northern States Power 30 yrs Pollution Control Bonds $2,600,000 $11100,000 07/20/75 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 S 150,000 S 585,000 12/23/85 Raindance Partnership 25 yrs Comm. Dev. Rev. Bonds $1,075,000 S 859,180 Noted Intorf and Receivables nd Payablga Capital Outlay Revolving - Due from RRA Fund $ 2,000 ` Economic Development Authority - Due from Economic Recovery Grant 100-000 S 102.000 1Note 9 Fund Equity {j The following fund balances have been designated or reserved as of December 31, 1998: Special Revenue Funds Economic Recovery Grant Reserved for non-current loans receivable $ 17,963 ' Economic Development Authority Reserved for non-current loans receivable 336,632 Capital Outlay Revolving Reserved for fixed assets held for resale 66,817 Debt Service Funds Future debt retirement 5,856,791 Capital Projects Funds r Future capital expenditures (310,292) 1 General Fund Designated for working capital 1,656,212 Designated for contingencies 331,242 Reserved for non-current loans receivable 11,098 i 20 uo 21 CITY OF MONTICELLO NOTES TO FINANCIAL STATEMENTS December 31, 1998 Note 30 Tax increment { Finance Dintricte Metcalf - Raindance Name Of District Kmart e1--: >r,non 92 Co amt. 5 RS g5 NANCO 07 Economic Re- Re- Re- Economic Type of District: Devolosm� D vec�mmrnt nnv los. n ,n lny�nt LP,jppm Year Established: 1990 1983 1984 1985 1987 Base Tax Capacity $ 2,236 $ 10,459 S 2,238 $ 185 $ 1,721 Current Tax Capacity 111,890 45,408 60,191 53,626 68,891 r Captured Tax Capacity 109,654 34,948 57,954 53,441 65.170 Retained By 11 Authority 109,654 34,948 57,954 53,441 65,170 Shared with Other Taxing Districts -0- -0- -0- -0- 150,000 Tot el Bonds Issued 560,000 260.000 165,000 35u,000 155,000 Total Loans incurred 32,000 Amounts Redeemed 395,000 92,000 115,000 130,000 215,000 outstanding Bonds = and Obli- gations 12/31/98 165,000 200,000 45,000 220,000 90,OOD uo 21 CITY OF MONTICELLO NOTES TO FINANCIAL STATEMENTS December 31, 1998 Note 10 Tax Increment Finance Districts - Continued Name of District NSP pB Tester 09 Renmele 110 Mert,le pll Aroolex 412 Ljtan ■16 Std Iron R13 Cuat. [an. tl15 Economic Economic Economic Economic Economic Econwic Economic Economic Type of District: Development Development Develooeent Q yr elooment Develop ent D ve�eOtment Oevelooment Development Ye9r B.tablished: 1989 1990 1990 1990 1991 1992 1997 1997 B' Ta% Capacity $ 556 $ 1,409 $ 1.544 5 227 $ 912 $ 46 S 1,846 5 718 Current Tax Capacity 1,726 45,114 54.206 4.514 21,922 12,598 fi0,462 12.842 Captured Ta% Capacity 7.112 43,705 52.662 4.287 20,990 12,552 58,616 12,086 Retained By Authority 7.172 43,705 52,662 4.287 20.990 12,552 58.616 12.086 Shared with Other Teal ng Di at,icts -0- -0- -0- -0• -0• -0- -0- -0- To[el Development Agreement Obllga[lono 25.000 17,500 311,000 48.000 Total Bonds Issued 140,000 165,000 120,000 75,000 -0- -0- Total Loans Incurred 23.000 80.000 Amounts Redeemed 21.000 125.000 158,090 17.500 55,000 35,000 116.026 22,427 Outstanding Bonds Loans and Obliga- tion. 12/31/98 2.000 40.000 06.910 -0- 65,000 40,000 194.974 25.513 Mississippi Prairie Lake Downtown Re- Midwest St. Blue Chip Name of District Polvice,[ jU FA mar 017 Rivet 111 218 Shore, 419 Meat s20 Top] #21 Develpo ant -i,,hi,, ire 423 B n &ct•e - vel Stonpmie Economic Soils Re- Economic Re- Economic Qualified Economic Type of District: Development Develppme.t rpnd•tlon llousin, Development DD vel Development D veloomen t Hcu,tno Di,t, Development, Year Bs tabliahed: 1994 1994 1994 1995 1996 1996 1991 1998 1999 1998 Bess Tex Capacity 5 624 5 216 $ 1,090 $ 4,484 $ 3,000 $ 6)7 S 679.690 S 608 $ 2.500 5 720 Current Tax Capacity 18,206 17,0]0 1,090 28.611 1.000 677 679,690 608 2.500 720 Captured Tax Capacity 17,502 16.752 24.127 Retelned By Aut hort ty 17,582 16.752 24.127 Shared with Other Taxing Diatr icts Total Development Agreement Obligation. 50.000 102,000 325.830 130.000 37.900 500.000 492,000 1,201.281 69,490 Total Bonds Issued Total Inane Incurred 60.000 75.000 65,000 63,000 moun Ats Redeemed 79.787 52.255 16,904 65,000 Outstanding Bands Loans end Obliga- tion. 12/71/98 613 72,745 102,000 306.926 130.000 77,900 563.000 492.000 1.201,281 69.490 Not, 11 Segment 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, 1998, is as follows: irenspo[- Total Serer rater Liquor cation Cemetery Proprietary fund Pond Pwad glad 111216landn Ops racing revenues S 690.421 5 750,911 S 541,221 5 26.799 S 22,329 $ 1.671.757 Operating expenses be- !arefore depreclatlon and z. tion 597,977 257,029 225.234 65,240 22,733 1.164.169 Depreciation and amorti- zation 1.033.619 229.176 11.009 1.273.884 Operating income Iloa.l $ 1977,1711 S 1135,2241 $ 304,901 S (38,4411 S (404) S 1806,296) Other revenues 44.465 19,642 29.117 61,287 950 155,661 Transfer. out (114.0001 11]4.0001 Net Income (lose) 5 1892.6661 5 ITIS. 582) Capital Contributions 12.191.297 S 415.501 Net working Capital Total Assets Total Equity (Deficit) 22 CITY OF MONTICELLO NOTES TO FINANCIAL STATEMENTS December 31, 1998 Note 12 Lona -Term Receivable, 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. 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, 1998, the balance was $12,955. 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 E.D.A. Revolving Loan Program and will be loaned out in the future for job creation. At December 31, 1998, the City has received $176,056 in principal and interest and the loan balance was $17,963. In July of 1994, a loan of $75,000 was made to a local comercial 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, 1998, the balance was $45,792. 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 rive years. A balloon payment is due at that time. At December 31, 1998, the balance was $45,943. 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, 1998 the balance was $11,098. 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 6.751, at the end of which time a balloon payment is due. The balance at December 31, 1998 was $93,319. 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, 1998 was $50,734. In February 1998, a loan of $87,500 was made to a local business. The loan requires monthly interest -only payments at 6.5% through March 2000. In April 2000, monthly payments of $1,716.12 including interest at 6.5%. The balance at December 31, 1998 was $87,500. 23 CITY OF MONTICELLO NOTES TO FINANCIAL STATEMENTS December 31, 1998 Insurance oy rage 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 LMCIT: 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 I14CIT and its reinsurers. The reinsurers in turn reimburse L4CIT for a corresponding share of each lose. A profit-sharing agreement also provides for a 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. WantewAter Treatment PJ= 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 is being financed by a Public Facilities Authority loan granted by the Minnesota Department of Trade and Economic Development. As expenditures are made, funds are requested per the financing agreement. As of December 31, 1998, $14,259,700 has been drawn down on the General Obligation Note, which vas issued in the amount of $14,700,000. Prior to 1997, $170,000 was designated for utilization as a financing source for prospective business interests. The funds were not utilized and were returned to the Liquor Fund and the UDAG Fund. 24 CITY OF MONTICELL) Statement A-1 GENERAL FUND STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE - BUDGET (GAWP BASIS) AND ACTUAL For The Year Ended December 31, 1998 With Comparative Actual Amounts For The Year Ended December 31, 1997 199Q audgar- Actual 1997 Actual Ry n , a General property taxes $ 2,553,250 $ 2,337,095 $ 2,106,846 Licenses and permits 185,450 422,633 253,343 Animal impoundment fees 15,000 20,918 19,626 Intergovernmental Revenue NACA 262,712 176,784 Fire department aid 45,000 43,954 42,182 Police aid 22,000 21,117 18,662 State highway aid 41,000 43,760 43,066 Recycling incentive 12,000 3,860 9,OSS Local performance aid 8,395 other grants 21,497 45,003 Deputy registrar fees 110,000 113,795 117,628 Park dedication fees 54,850 Other Income Recycling income 15,000 15,365 30,639 Interest income 121,435 179,774 159,694 Renta 17,300 18,556 36,761 Miscellaneous income 42,200 97,746 88,757 Refunds and reimbursements 15,000 188,106 325,278 Township contract 65 ?F2 64.020 ,64 045 Total Revenues t ,_259.995 ,j_j 918 163 ,5„3.537.402 gXpenelituren Mayor and Council Salaries $ 25,900 $ 24,078 $ 24,081 Other 6.550 7I-2 8.978 Total Mayor and Council S 32.450 S 31.690 S 33.059 Administration Salaries and employee benefits $ 216,775 $ 228,368 $ 212,098 Supplies 15,400 22,153 12,119 Other 74.400 76.421 $1 152 Total Administration t 306.575 5— 326.942 S 265.369 Elections S 5.600 S 5 S 1.409 Finance Salaries and employee benefits $ 99,105 S 100,711 $ 97,106 other 2.975 4.222 3.505 Total Finance 5 102.Oao 5_ 104.933 S 100.691 Computer t 75.575 S 81.207 S 18.952 Audit S 13.500 S 12.750 S 10.935 Legal $ 47.500 S 58.908 t 52.667 Insurance S 63,915 S 62.254 S 59.067 Planning and Zoning Salaries and employee benefits $ 134,635 $ 97,244 $ 71,728 Professional services 25,000 361,619 119,072 Other 6.450 22.711 7.407 Total planning and Zoning S 166_oas S 481 574 ,$ 198.207 25 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, 1998 With Comparative Actual Amounts For The Year Ended December 31, 1997 199Q 1997 Rxrondi .r a - Continued Budget Actual AQLUAl Deputy Registrar Salaries and employee benefits $ 97,520 $ 91,486 $ 90,619 Other 11.300 9. Fri 11.418 Total Deputy Registrar S 108.820 5 101.362 S 102.0]7 City Hall Salaries and employee benefits $ 6,685 $ 9,223 $ 8,596 Utilities 19,000 11,614 11,201 Capital outlay 6,717 7,221 Other 18.500 11 95P 12.624 Total City Hall 5 44.185 5 39.412 5 39 642 Lav Enforcement 5 333.325 S 333.317 S 323.472 Fire Department Salaries and retirement benefits $ 99,895 $ 91,886 $ 100,925 Capital outlay 10,000 Other 62 11- F5_jII 62.175 Total Fire Department S 172.216 S 157.20] 5 163.100 Civil Defense Salaries and employee benefits $ 7,695 $ 175 $ 4,289 Other 1,650 1,071 6,551 Storm damage expenses 141.165 337.622 Total Civil Defense 5 9.]45 5 142.411 5 348.462 Animal Control General operations $ 36,850 $ 37,836 $ 49,551 Capital Outlay 1.200 6.707 139.299 Total Animal Control 5 78.050 S 44.543 5 188 A" Public Works - Administration and Engineering Salaries and employee benefits $ 100,180 $ 100,369 $ 91,351 Professional services 19,800 23,105 162,955 Other 11 16f1 16.987 15.717 Total Public Works - Admini- stration and Engineering 5 133.140 S 140.461 5 270.043 Public Works - Streets and Alleys Salaries and employee benefits $ 191,400 $ 179,099 $ 189,384 Supplies 49,000 56,296 67,117 Capital outlay 75,900 71,397 64,418 Other 4 Zan 8.817 Total Public Works - Streets and Alleys S 325.550 S 306.792 5 329.7]6 Public Works - Snow and Ice Salaries and employee benefits $ 31,620 $ 22,778 $ 17,855 Other 29.100 63. 91Q 45.3]6 Total Public Works - Snow and Ice S 60.720 S 86.688 5 63.191 Public Works - Inspections S 90.775 S 83.9]0 $ 81.680 Public Works - Street Lighting 5 67.700 5 79.854 S 71.346 26 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, 1998 With Comparative Actual Amounts For The Year Ended December 31, 1997 RnpPndi ,r s - Continued Public Works - Shop and Garage Refuse Collection Senior Citizens/Museum Salaries and employee benefits Other Total Senior Citizens/Museum YMCA/Community Education Parks and Recreation/Cemetery Salaries and employee benefits Capital outlay Other Total Parka and Recreation/ Cemetery Economic Development Building Official - Inspections Severance Benefits Assessment Total Expenditures Excess of Revenues over Expenditures O h Fin nc'na (Un—) Transfers in Transfers (out) Excess (Deficiency) of Revenues and Other Sources over Expen- ditures and Other Uses FUND BALANCE AT BEGINNING OF YEAR FUND BALANCE AT END OF YEAR 1998 1997 Budqet Actual Actual S 37.850 $- 70,862 S 45_262 S 263.100 S 300,184 S 237.969 $ 1,738 $ 595 S 38.695 34.000 37.723 S 39-69S 9 35.738 S IR, I I a S 2S. non S 2S000 S 25.000 $ 173,150 $ 163,529 $ _82,763 129,290 163,240 12,633 55.800 82.660 51.806 S 35({ 240 S 409.429 S 147.202 S 15904S 5 60.469 S 40.220 S 153.415 S 152 -SSA S 150.520 S 11.000 5 11.929 S 6.249 S 16.SSO S. 19.696 S 15 910 3,259.995 S 1 2A7,215 S 3-42R. S71 $ -0- $ 150,968 $ 100,829 150,000 (84.300) (86.050) L. ,. __ _ n,-. $ 66,668 $ 172,779 27 CITY OF MONTICELLO SPECIAL REVENUE FUNDS COMBINING BALANCE SHEET December 31, 1998 With Comparative Totals at December 31, 1997 28 Capital ASSUTR Shade Orderly Outlay Ann—Atian Revolvino I. i or. - cess --d i-M.t:1'.".- S 140.027 S 0.420 s 1.201.177 Receivable. Special assessments - deferred 517 124,171 Special ss.eaemente - delinquent 31,066 Accounts (net of allo.ance for esti- sated uncollectible.) 287 105 6,147 Due from other funds 2.000 Prepaid expenses 9 139 land held for resole 66,817 Long-term receivable TOTAL ASSETS 130_A]1 5 ._524 S 1. 412.37A 5. 1]9 tI A91�ITI 4 nM A 11u R9 Liabilities Cash deficit 0 1,180 Accounts payable 6 contract. payable S 14 S 2.410 132 Accrued expenses 193 Due to other funds Deferred revenue S1761 2 937 Total Liabilities S 924 S 164.947 S 1-312 Fund Balances Reserved for noncurrent loans receivable Reserved for fixed senate held for resale $ 66,817 Unreserved - undesignated 5 130.007 S 8.525 5.200.614 S (1-171) Total Fund Balances t 110.007 S A 525 S 1 267 Oil S (1,M) TOTAL LIABILITIES AND PUND BALANCES S 110_!131 Ste. 5.2�t e 1 412 ST9 g. 139 28 Statement 8.1 29 Central Housing and Urban Economic Minnesota Economic Storm Redevelopment Authortty Development Action Grant Development Nater Authority Imoroy�„meent Sewer 19mroyement Initiative Fund Recovery Grant Sewer TOTALS Acceeo isin 1997 $ 278,476 $ 253,294 $ 492,507 $ 568,851 $ 2,218,091 S 678 $ 165,578 S 240,016 $ 5,557.117 S 3,220,586 40,876 98,902 264,466 30,130 31,866 29,736 13,705 5,446 401 26,291 223,974 100,000 102,000 105,000 139 184 e�2 a2�18a 8^ 253.294 336.434 S.. 928.941 � 568.851 S 2.264.413 17.963 66,817 354.397 5 33 a„3�Ia 5 6.403.09] S 66,617 439.912 S 67B 4.e16 339 �� 183.511 $ 11180 $ 2,311 5 39 $ 1,215 S 2,483 6,293 47,083 $ 534 827 561 2,000 1.127 S 3.861 S 39 S 1.215 9_ 40.876 S 40.876 100,000 102,000 ,S 98.902 304.159 S 98.902 S 414.459 S 105,000 261.981 416.956 S 1,02.483 5 336,632 $ 17,961 $ 354,595 S 440,011 S 288.322 S 288.122 9 2 2.eBl S 2S3294 S 23.294 S 2.,294 592.270 S 567.636 S 928.902 S 567.636 S 928.941 S 568.851 S 2.223,537 S 2 -22A -S37 S 678 61.095 S 81.058 4 183 541 66,817 S 240.417 5.567.222 S 240.417 55.9$8.634 S 5 339 379 9 6 403.Oaa S 66,017 1.792.555 3.699.183 4.316.339 S 678 S 67B S 2.264.43] 29 CITY OF MONTICELLO SPECIAL REVENUE FUNDS COMBINING STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES For The Year Ended December 31, 1998 With Comparative Totale For The Year Ended December 31, 1997 Revenue, Taxes intergovernmentsi Charges for services Miscellaneous Interest Collections on eesea.ment. Total Revenues R.adf l"22 General government community development capital projects Total Expenditures Excess (Deficiency) of Revenues over Expenditure. Grp r Plnan lna S a 1 �n Transfer. in lout) Grant reimbursement Total Other Financing Sources (Uses) Exces. (Deficiency) Of Revenue. and Other Sources over Expen- diturea and Other Uses Fund balances at beginning of year Prior Period adjustment FUND BALANCES AT END OF YEAR Capital Shade Orderly Outlay Tree Annexation R.volvinu tlhrary S 21 S 2.270 5 510.715 S 71.085 1.700 8.806 6,556 675 62,857 336 100.666 5 10.209 L ---L].65 S 662 -RJR L-11-= S 79,623 S 1,680 S 7.751 S 29.820 ]10_RR6 19.623 S 1-680 _ 216.235 S 29.820 S (29.616) 1.061S 448-603 L-1-211 S (29.616) S 1,065 159,621 7,660 S� 1�0 0=7 P6�B 9y 30 2n9, non S 209.090 $ 657,697 S 1.265 609,738 (2,678) ew__1 Laaaa.jh.aa) Statement a-2 31 Central Housing and Urban Economic Minnesota Economic Storm Redevelopment Development Development Mater Serer Initiative Recovery Serer TOTALS Authority Action Grant Authority lmpiovement 1r0vement n—i nrant Access 1998 1997 $ 468,491 S 1,012,582 S 978,227 43,450 S 171,892 S 1,192,675 S 209,272 1,575,339 372,882 11,288 S 200 $ 120 $ 1,182 21,596 53,329 16,395 S 496.174 $ 15,486 S 15.486 50,182 S 50.382 31,444 S 203.336 90,291 7.859 S 1.291.025 79 S 199 S 9,742 1C.924 11,564 S 220.836 277,065 108-657 1-2-215-212 234,197 160.190 S 1.842.275 S 207,526 S 262,000 $ 219,280 77.453 S 284.979 $ 17,654 S 17.654 S SB.192 S SB.142 S 2.896 S 2.896 S 17.771 S 17.373 17,654 366.748 S 666.402 1,224 278.469 S 498.973 S 211.195 S (196,057) 5 (196.057) S 15.486 5 32.728 S 145.194 S 1.288.129 $ (570) L ---Lau) S 199 S S 5 10.924 (52-0491 (52.049) S 203.463 S 2.328.877 C 12,463 152.049) S 179.586) L-1-111-122 5(1,382,495) S(1.382.495) S 15,138 $ 15,486 S 32,728 S 149,194 $ 1,267,559 S 199 $ (41,125) $ 203,463 S 2,289,251 $ (39,193) 273,164 S 288.722 237,808 S 251.294 696,174 S 928.902 422,442 S 567.636 935,978 5 2.22]_537 479 S 678 S 122,183 BI.OSB 36,954 5 290.417 3.699,383 S 5.988.6]4 3,808,576 170.000) S 1.699.181 31 CITY OF NONTICELLO Statement B-3 SHADE TREE FOND STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE - BUDGET (GAAP BASIS) AND ACTUAL For The Year Ended December 31, 1998 With Comparative Actual Amounts For The Year Ended December 31, 1997 Revenue, Property taxcc Tree removal and replacement Interest income collections on assessments Total Revenues Rrnnn i r 9 Salaries and employee benefits Contracted services Supplies Other Total Expenditures Excess (Deficiency) of Revenue, over Expenditures Beginning Fund Balance ENDING FUND BALANCE 399R 1997 $ 21 $ 403 $ 2,00 1,300 1,425 6,550 8,554 9,719 Ali 8.Ss0 S 10.209 S 11.%47 $ 11,730 $ 10,831 $ 11,797 58,700 21,733 2,996 1,000 6,242 1,189 817 1%n A 71-430 S 39.623 S 16.132 S (62.AB0) $ (29,414) $ (4,585) 159.421 164-006 t 110-007 S 1co. 421 32 i CITY OF MONTICELLO iORDERLY Statement B-4 ANNEXATION FUND STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE - BUDGET (GAAP BASIS) AND ACTUAL ` For The Year Ended December 31, 1998 With Comparative Actual Amounts For The Year Ended December 31, ( 1997 4199q BBudoet Actual 1997 Actual Ra i Property taxes $ 2,175 $ 2,270 $ 1,291 Intergove a funznta 1 225 281 Interest income SnQ A7= sil iTotal Revenues S 2.900 S 2.745 S 2 lnq Rm IIA i r H Salaries - board members and isecretary $ 750 $ 1,680 $ 895 Other 2.150 6.347 Total Expenditures S 2.900 S 1.680 S 7 242 Excess (Deficiency) of Revenues over Expenditures 5 -n- $ 1,065 $ (51137) Beginning Fund Balance 7.460 12.597 ENDING FUND BALANCE 5 B.c2a S 7-a60 33 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, 1998 With Comparative Actual Amounts For The Year Ended December 31, 1997 Revenues Property taxes Intergovernmental Interest income Collections on assessments Other Total Revenues R--Airr „ Capital improvements Other Total Expenditures Excess (Deficiency) of Revenues over Expenditures Other Financing Sourcen (Omen) Transfers in (out) Excess (Deficiency) of Revenues over Expenditures and Other Financing Sources (Uses) Beginning Fund Balance ENDING FUND BALANCE 199R 1997 Nudge[ Ae[ual per��at $ 510,736 $ 510,715 $ 477,045 42,031 38,440 42,853 63,101 30,500 100,464 160,190 12.000 8.806 49.361 5 591.676 S 662.838 S 791.728 $ 590,000 $ 210,804 $ 115,045 A 35; 13.222 5 590.000 S 214.235 S 128.267 $ 1,676 $ 448,603 $ 663,461 5 1.676 $ 657,693 $ (452,904) 609.738 1.062.642 5 1.267.431 S 609.778 34 CITY OF MONTICELLO Statement B-6 LIBRARY FUND STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE - BUDGET JGAAP BASIS) AND ACTUAL For The Year Ended December 31, 1998 With Comparative Actual Amounts For The Year Ended December 31, 1997 1998 A„Acy,�t Actual 1997 Actual Property taxes $ 31,095 $ 31,085 $ 31,403 Other revenue Linn 2'11,,'1 Total Revenues G 32,.394 S 31.085 S 31.SIA Expendituren Salaries and employee benefits S 6,110 $ 6,851 S 6,529 Supplies 1,700 1,218 3,905 Professional services 10,500 6,243 8,742 Utilities 7,375 9,925 9,376 Insurance 11185 816 1,179 Repairs and maintenance 2,950 2,079 2,866 Other 1,475 2,688 1,135 Capital outlay 2.nn0 11.013 Total Expenditures 29.870 S 44.745 Excess (Deficiency) of Revenues over Expenditures 1,265 $ (11,227) Beginning Fund Balance /2.438) 8.789 ENDING FUND BALANCE 35 CITY OF MONTICELLO Statement B-7 HOUSING AND REDEVELOPMENT AUTHORITY FUND STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE - BUDGET (GAAP BASIS) AND ACTUAL For The Year Ended December 31, 1998 With Comparative Actual Amounts For The Year Ended December 31, 1997 Revenues YTaxes Intergovernmental Interest income Other Total Revenues PIGD n i ,r a Land acquisitions Salaries and employee benefits Legal and professional fees Interest Other Total Expenditures Excess of Revenues over Expenditures Other FinAnging 9a+r. n l roes) 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 1998 1997 Budget Actual Actual $ 427,320 $ 468,491 $ 468,085 1,138 11,480 16,395 16,077 11.288 S 438.800 S 496.174 S 485.300 $ 75,000 $ 77,453 $ 76,291 14,795 14,632 14,034 42,000 53,599 38,955 400 400 640 71.675 138_895 9S-321 9 203.870 S 294.979 5 229,241 $ 2,620 9 (198.685) 1198. 68t) $. (246.950) 9 (198.68G) S 1196.057) ,j_ (246.950) 36 15,130 $ 13,107 271.184 260.077 288.322 5 27].184 CITY OF MONTICELLO 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, 1998 With Comparative Actual Amounts For The Year Ended December 31, 1997 RRP Interest Excess (Deficiency) of Revenues and Other Sources over Expenditures and nrh— Tyne. Beginning Fund Balance Prior Period Adjustment ENDING FUND BALANCE 79oR 1997 Budget Actual Actual L ---L.690 5 15.486 S 14.000 t 4.690 $ 15,486 $ 14,000 237,808 123,808 lDD.00D 55 2� S 237.808 37 CITY OF MONTICELLO Statement B-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, 1998 With Comparative Actual Amounts For The Year Ended December 31, 1997 E2xcn= Interest income Other Total Revenues Rpn i .re Other Excess of Revenues and Other Sources over Expenditures Beginning Fund Balance Prior Period Adjustment ENDING FUND BALANCE 1998 1997 Budget A ua1�1 arru,-.1 $ 35,880 $ 50,182 $ 48,035 200 $ 35,880 $ 50,382 $ 48,035 2.120 17.654 , 77_1 5 33.760 6 32,726 $ 46,811 38 1,019,363 896.174 (170.000) S 928.902 5 896.179 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, 1998 With Comparative Actual Amounts For The Year Ended December 31, 1997 o v—g— Hook-up fees Interest Total Revenues Capital improvements Excess of Revenues over Expenditures Beginning Fund Balance ENDING FUND BALANCE 199A 1997 Budget Ery " Actual $ 65,000 S 171,892 $ 77,020 15.720 31.444 25.4A2 $ 80,720 $ 203,336 $ 102,502 65.000 SA_142 76.120 S 15.720 S 145,194 $ 26,382 422.492 396.060 S 567.636 S 422.442 39 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, 1998 With Comparative Actual Amounts For The Year Ended December 31, 1997 1998 Budge[ Actual 1997 Actual aP Hook-up fees $ 300,600 $ 1,192,875 $ 273,142 Interest 23,840 90,291 46,520 Other 578 Collection of assessments 7.859 Total Revenues $ 324,440 $ 1,291,025 $ 320,240 rxenditiren capital improvements-896 Excess of Revenues over Expenditures $ 324,440 $ 1,288,129 $ 320,240 nthe_r Ficins Sourcee (umen) Transfers out (570) (19.180) Excess of Revenues and Other Sources over Expenditures and Other Uses 32a.44o $ 1,287,559 $ 301,060 Beginning Fund Balance 935.978 674.918 ENDING FUND BALANCE S 2.223.537 S 935.978 40 CITY OF MONTICELLO Statement 8-12 CENTRAL MINNESOTA INITIATIVE FUND STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE - BUDGBT (GAAP BASIS) AND ACTUAL For The Year Ended December 31, 1998 With Comparative Actual Amounts For The Year Ended December 31, 1997 •oaR 1997 Budget Actual Actual Revenues l.itereat 79 ., :9 Other c I'Q •+R Ila Total Revenues S 124 s 19j $ 169 Excess of Revenues over Expenditures S 120 $ 199 $ 169 Beginning Fund Balance 479 Alrl ENDING FUND BALANCE S 67R S 479 41 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, 1995 with Comparative Actual Amounts For The Year Ended December 31, 1997 42 19QR Bud$et Actual 1997 Actual Revenues Interest $ 5,560 $ 9,742 $ 9,130 Other IS 1 1R2, 1.165 Total Revenues 5 5.740 c 10-924 a 10.2 5 Excess of Revenues over expenditures $ 5,740 $ 10,924 $ 10,295 Other Fingncina 4our a (LI -cal Grant reimbursements (52.049) Excess (Deficiency) of Revenues and Other Sources Over Expen- ditures and Other Uses 5 5.7x0 $ (41,125) 5 10,295 Beginning Fund Balance 122.183 111.AR% ENDING FUND BALANCE i -22.1a3 42 CITY OF MONTICELLO Statement B-14 STORM SEWER ACCESS STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE - BUDGET (GAAP BASIS) AND ACTUAL For The Year Ended December 31, 1998 With Comparative Actual Amounts For The Year Ended December 31, 1997 Reysnue_ Nook -up fees Intereal Total Revenues &x2z A'=rn__ Contracted services Excess of Revenues over Expenditures Beginning Fund Balance ENDING FUND BALANCE 1 R9R 1997 Budget Actual Actual $ 80,000 $ 209,272 $ 21,295 RAI 11.564 1.541 S sr_lco 4 220.816 S 22.836 S a0.5b8 $ 203,463 $ 22,636 43 CITY OF MONTICELLO Statement C-1 DEBT SERVICE FUNDS COMBINING BALANCE SHEET December 31, 1999 With Comparative Totals at December 31, 1997 General General General General Obligation Obligation Obligation Obligation Tar Increment Improvea,ent Tex Increment Consolidated Improvement Ronde Bonds Bond, of 19a519as Rand Puad Boada of 19]] 55 r� eeriea 1988A d$�9 casn ana investments 5 9i.Jrl a JLJ,U40 Accounts receivable x'1,002 Special asaeos nta Deferred 132.755 23,291 Delinquent 76.773 Lane for resale SAL ASSETS e�a2 3-97)-97 R79 1-1^] 5 6]9.211 $ -D- 5 1a-656 1.t RI -ITI a AND P"fD AUA= Liabilities Cash deficit Accounts payable Deferred revenue 5 566.065 5 21.291 Total Llabllltiea . 566,065 S 22.251 Fund Balances Reserved for debt ser -vices 5 x].39]9 3l1_046 L---A55-9x2 5 1x.656 TOTAL LIABILITIES AND MID BALANCES $ x2.197 5 819.113 44 CITY OF MONTICELLO DEBT SERVICE FUNDS COMBINING BALANCE SHEET December 31, 1998 With Comparative Totals at December 31, 1997 1 -Ian I�-]T189 Aa_n Pmlb _L&= Liabilities Cash deficit Accounts payable Deferred revenue S 10.009 9 ja8-est S ].657 S S-965 S- 476 Total Liabilities $ 10,009 $ 106.057 S 3.651 S 5,665 S 476 bund Balances Reserved for debt .e rvices S 204.971 S 15.]06 26.5]9 S 96.819 116.517 S 59.759 71.685 261.665 5 22.651 S 14.996 TOTAL LIABILIT199 AND rUND BALANCES S 204.971 5 15.106 S ]6.547 5 207.676 9 190.174 5 99.751 S 77.550 S 282.141 5 22.651 S 14.916 45 General General General General General General Obli- General General General General Obligation Obligation Obligation Obligation Obligation gation Taxable Obligation Obligation Obligation Obligation water Taxable Improvement Improvement Improvement Tax Increment Improvement Improvement Tax Increment Tax Increment Bonds e[iew 1911 Bond. Series 1999A Bonds e[iee 19191 Bonds Ee[iee 19921 Bond. Series -1112r- Bonds ,feriae 1990D Bonds Seriew 1991A Bonds Series 1992A Bond S+eriea 1992 Bond Series 1992D &ILM= Cash and investment. S 204,801 $ 35.101 $ 26,626 S 98.819 S 106,407 5 59.756 S 69,761 S 211,649 5 22.651 S 14.986 Accounts receivable 172 112 30 1,924 17 Special oase.sment. Deferred 9.7543.042 2,127 Delinquent 2S5 6 1 S 3.738 476 Land for resale 109.857 TOTAL ASSETS204 _97 t_971 5 35.701 L=__1 &= 5 207.676 S 190.174 5 59.751 5 ]7.550 5 242.141 5 22.651 5 14.986 1 -Ian I�-]T189 Aa_n Pmlb _L&= Liabilities Cash deficit Accounts payable Deferred revenue S 10.009 9 ja8-est S ].657 S S-965 S- 476 Total Liabilities $ 10,009 $ 106.057 S 3.651 S 5,665 S 476 bund Balances Reserved for debt .e rvices S 204.971 S 15.]06 26.5]9 S 96.819 116.517 S 59.759 71.685 261.665 5 22.651 S 14.996 TOTAL LIABILIT199 AND rUND BALANCES S 204.971 5 15.106 S ]6.547 5 207.676 9 190.174 5 99.751 S 77.550 S 282.141 5 22.651 S 14.916 45 Statement C-1 (Continued) General General General General Obligation General General General Temporary Obligation Obligation General Obligation Obligation Sewer Inter- Obligation Obligation Obligation Public Refunding Refunding Obligation Improvement Refunding ceptor Refund- I-Provement Wastewater water System Project Bonds Series 1993A Bonds e"riea 4A 199 Improvement Bonds D1 1995 Bonds eriee 1996A Bonds of 19968 ing Bond. Series 1996C Bond -erica 1997A Treatment Rote mC 1997 Refunding Bonds Serle. 19988 Revenue Bonds Series 1998 rnf"l^ 1998 1997 S 200,722 $ 256,517 a 11452,544 a 215,325 • :7:.951 123,479 $ 101,988 S 560.976 $ 537,207 $ 14,710 S 5.675,156 $ 4.019,091 121 179,211 102 160 733 163.784 55,818 55,853 014,007 24.549 115.266 1.400,644 2.150.350 3,453 26.319 33 $ 123.610 4.136 S 5]7.207 5 14_]70 115,998 465.194 S ].840.976 $ 244.982 715.604 7-215.87] 5 541.709 B 441.590 S 195.951 S 260.009 S 2.4]2.081 S 156.144 $ 200.722 S 59.]06 S 840.]26 S 14.582 $ 59,306 $ $40,326 $ 24.582 46 S 259.845 S 2,149 $ 2.149 S 139.602 1.992-016 ].155.249 $ 339.602 2.149 3 1.984.165 $ 3,914.094 CITY OF MONTICELLO Statement C-2 DEBT SERVICE FUNDS COMBINING STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES For The Year Ended December 31, 1998 With Comparative Totals For The Year Ended December 31, 1997 General General General General Obligation Obligation Obligation Obligation Tax Increment Improvement Tax Increment Consolidated Improvement Bonds Bond% Bond, of 1985 Bond Fund Bond, mf 1977 Series 1967A ,v „.. Tanen S 8.689 Collections on assess9ents $ 6,505 48.258 Intergovernmental Interest On investments 5 951 38.5]9 19.295 S 158 5 1.588 Total Revenues S 951 _ 25.0]9 S 96.2]2 S 158 5 1.188 Shcture 6 Debt service Principal retirement S 20.000 S 109.289 interest and fiscal chargee 19-559 6-71] Total Expenditures S ]9.559 5 115.99] excess (Deficiency) of Rev- enues Over Expenditures S 118.608) S 25.019 _ 119-765) S 158 S 1.188 Fin—ing C ill s) Transfers in (out) S 37,265 S (2,628) Ped Proceeds sales of lend Total Other Financing sources (Uses) _ 17-265 9 12.6'81 excess (Deficiency) of Rev- enues and Other Sources Over expenditures and Other Use. S (1.343) 5 25,039 S (19.765) S (2,470) S 1,188 Pund balance. at beginning of year 43.74. 268.009 67s.707 2.470 11.468 FUND BALANCES AT cm3 OF yZAR 9 42 r,�] S 111.098 92 S -0- S 14.656 47 CITY OF MONTICELLO DEBT SERVICE FUNDS COMBINING STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES For The Year Ended December 31, 1998 with Comparative Totals For The Year Ended December 31, 1997 IDm ne dl[I�rwe Debt service Principal retirement S 15.000 Interest and fiscal chargee u.seo Total Expenditure. S 118.680 Excess (Deficiency) of Rev- enues Over Expenditures S 16.178 Oth r Plnen w0 RO err n fLsew) Transfers in lout) Bond proceed. Sale. of land Total Other Financing Sourcee (Uses) Excess (Deficiency) of Rev- enues and Other Sources Over Expenditures and Other Use. S 16,17E Fund balance. at beginning of year SE E. 595 FUND BALANCES AT END OF YEAR S 204.971 $ 15.000 S 25.000 S 25.000 16.617 5.259 5 1.029 8.791 5 ll_63] S 10.259 S 1.029 S 13.]9] 5 132.845) S 1621) 5 11.029) S 6.970 $ 31.750 $ 45,000 S 70,000 S 75.000 S 15,000 1A. 755 6.405 21.002 4.713 5 55.755 S 76.405 S 96-002 5 19.713 L__154_ -M) 5 159_wU) 5 (56.241) 5 (18.2871 $ 52,710 S 18.635 5 11.750 $ 11,095) S General General General General General General Obli- General General General 111.566 Obligation Obligation Obligation Obligation Obligation gation Taxable Obligation Obligation Obligation Yater Taxable Improvement Improvement Improvement Tax Increment Improvement Improvement Improvement Bond. 8etiew 1988 Bond. Series 1989A Bond. Serle. 19898 Bond. S r� Se�_19908 Bond. Serlew 19900 Bonds ^-gtl a 1Uw Bonds aria. 1991A Bonds Serle. 1992A Rend. sties 1992 Pwv Taxe.w S 126,621 $ 26,398 S 22,216 $ 12,429 Collectiona on assessment. 2.606 8,328 S 11.651 10,620 Intergovernmental Interest on investment. 8.217 5 792 634 10.217 S 1.010 4.671 16.]12 5 1.426 Total Revenue. 5 115.058 5 792 1___Z9.6185 40.761 5 1.010 5 16.524 $ 39.]61 5 1.426 IDm ne dl[I�rwe Debt service Principal retirement S 15.000 Interest and fiscal chargee u.seo Total Expenditure. S 118.680 Excess (Deficiency) of Rev- enues Over Expenditures S 16.178 Oth r Plnen w0 RO err n fLsew) Transfers in lout) Bond proceed. Sale. of land Total Other Financing Sourcee (Uses) Excess (Deficiency) of Rev- enues and Other Sources Over Expenditures and Other Use. S 16,17E Fund balance. at beginning of year SE E. 595 FUND BALANCES AT END OF YEAR S 204.971 $ 15.000 S 25.000 S 25.000 16.617 5.259 5 1.029 8.791 5 ll_63] S 10.259 S 1.029 S 13.]9] 5 132.845) S 1621) 5 11.029) S 6.970 $ 31.750 $ 45,000 S 70,000 S 75.000 S 15,000 1A. 755 6.405 21.002 4.713 5 55.755 S 76.405 S 96-002 5 19.713 L__154_ -M) 5 159_wU) 5 (56.241) 5 (18.2871 $ 52,710 S 18.635 5 11.750 $ 11,095) S 5 5 (621) S 280-290 280.290 279,261 S 5 52.710 6.970 $ (2,015) S (59.561) $ S 18.615 (56,2411 S 146 16.401 27.159 26.5]8 S 1194.442) 98.619 S 179.547 61.771 166.517 5 59.758 5 111.566 11].906 12.]0] 281.665 5 22-651 71-685 5 5 ]9.]08 5 48 Statement C-2 (Continued) General General General 560.633 86.6]8 697.111 General 9 90,000 21.586 S ill_SR6 Obligation General General General Temporary Obligation Obligation Obligation General Obligation General Serer Inter- Obilgacion Obligation Obligation Public Tax Increment Refunding Refunding Obligation Improvement Obligation ceptor Refund- Improvement wastewater rater System Project Bond Serle{ 19920 Bonds Serle{ 19911 Bonds 5er1eB 19991 Improvement Bonds of 1995 Bonds Series 1996& Refunding Bondn of 19968 !ng Bonds Serien 1996c Bond. Series 1997A Treatment Note of 1997 Refunding Bond. SerleA 1998B Revenue Bonds --ln Series 1998 1998 1997 903,010 1.228.725 S 313,785 S (6.612) _ 08.1581 150 c63 5 215.92] S 199 9 �y1 S 9,510 $ 163,778 $ 75.129 $ 223,267 3.S78,516 S 3�py $ 118,241 1 631 7cc �—y $ 591.709 $ 1,099,917 $ 562,195 29,819 999,019 921,117 1,07],1]3 728,519 99,712 91.865 71.891 S 10,000 1.925 5 11.925 $ 110. ODO 13.66] S 191.663 $ S 560.633 86.6]8 697.111 S 13D, 000 S 125.000 59.812 12 ac9 S 189.832 5 13].ac9 9 90,000 21.586 S ill_SR6 $_ 9.999 5 9.999 S 1,999,917 1f 8. 587 S 1.868.509 $ 1,180,000 515.989 S 1.695.989 S 111.9]5) 5 12.019 $ (100.111) $ 99.030 S 31].]85 5 1115.062) $ 9.962 S 9.925 $ 591.709 $_ (8.019) _ 99B.S19 S flfiC098) $ 12,175 $ 309,000 $ 170,950 S 32.665 $ 617,222 C 295,500 L___11.1.]5 5 139.000 i 119.000 S 130.990 510,212 5 16,170 5 59a 077 5 19.770 658,982 2eD.19D 91,865 5 309.000 _ I.SSI-494 S 387.3-5 $ 200 5 16.786 5 16.986 S 12,039 $ 33,869 188.683 262.969 200.]22 $ 296.8]8 $ 903,010 1.228.725 S 313,785 S (6.612) _ 08.1581 150 c63 5 215.92] S 199 9 �y1 5 91982 S 117 698 9,625 $ 591.709 $ 535.058 5 16.770 92.563 101.988 S 591.709 5 c�3c 0_c6 S 16.]]0 $ 2,055,008 3 801 ]83 5 Bch 791 � $ 223,267 3.S78,516 S 3�py 9 1 631 7cc �—y S� 1�3�30 S 49 CITY OF MONTICELLO CAPITAL PROJECTS FUND COMBINING BALANCE SHEET December 31, 1998 Statement D-1 50 oeello/ aecvr9 Need— 9-teood School Pak, &poll Bnial,vard sacs Southwest 11ei. Aeaervolr Al., Farms Cardinal 11.10 nigh school Anloal pathways Cash and investments S 40,522 $ 426,962 811E f4 para 3rd Bever 5 47,296 Rbelt,r immrmvemant Accounts receivable TOTAL ASSETS _ __ S 40.572 S 426.962 S -0- 5 -4- _ -e• _e• -4- $ 47.2ye S -Q- S •0- S -4- LIABILITIES AND rumn-RALA= Liabilities Cash deficit $ 31,836 $ 1.616 Accounts payable $ 496 06 Contracts payable 1.0]4 Deferred revenue 5 44.350 Total Liabilities S 49.716 S 32.961 S 1.6x6 fund Balances Designated for capital improvements S 40.522 S 426.962 5 12.440) S (12.961) 11.6.16) Total fund Balances S 40-S22 S 426.9fi2 S 12.4401 S 132.961) S 11,616) TOTAL LIABILITIES AND FUND BALANCES ............................................................................................................................................................................ S.. 10.522 S 426.962 5 .4- 5 -Q- 5 -e• s -e• 5 -e• 5 47.296 $ -b- S -0- S •0- 6$$SIJ Utilities Cardinal pathway StIlA y1"a y prolact Nn Rsaansion Dund.. Brier prniect 11.i0 River at. Bey 23 ......................... cardinal Klein Cash and investments Bill, Road oaks 2nd S 155.007 Yarm 2nd Trk BAs Ela IDR DOT Ins Hill, yI S ►atm. ith ACCount. receivable 5.111 412 $ 1.761.166 TOTAL ASSETS S -0» 5 -4- S •4- S 35 8B2 S -0• S -e• 5 -e. 5 -4• 5 -4- X761 1. 76i.Y55 LIABILITIES Alm RV Liabilities Cash deficit S 238 5 295,fi54 Aeeaunt. payable $ 76,016 6,122 S 412 S 162 Contracts payable Deferred revenue 1.500 51,342 Total Liabilities S 231 S 36.016 S 345.476 S 412 1.358.542 S 1.410.046 Fund Balances Designated for Capital improweents S 1238) S 119_.46 5 1105 476) S 5 I3I S 354.120 Total Paid Balances S 1238) S 319,246 S (]05.476) S _ 111 S 3S4.120 TOTAL LIABILITIES AND FUND BALANCES S -e• 3 •e• 5 •e• LeeseAdIftAU i__ •e- S -4- S -0• 5 -9- 5_ .0- S 5.753 S I.T64. 166 50 CITY OF MONTICELLO CAPITAL PROJECTS FUND COMBINING BALANCE SHEET December 71. 1998 Statement D-1 (Continued) 51 Resurrection Bosdus Church Matereain Rat... ion Bever Byste. A Matarmain C-ity Carver 7tb Street Bridge Par! Booster Paas Cash and investments S 212,545 ZNRAmaien Berth wales[ 11M Ride, Co- Reed 110 191A1 - S 2.652,704 Accounts receivable 412 TOTAL ASSETS S -0- s -e• S 134 548 s -e- $ -0- S -a- 5 -e- S 4081.116 11 wi I TIE9 surge Liabilities Cash deficit S 1.363 S 48.359 S 792,211 $ 4,307 S 900 S 91.767 S 1,260,251 Account. payable 45 S 202,839 1,304 5,747 665 334,124 Contract. payable 2,096 54,067 36,511 4,706 149,761 Deterred revenue 1.411.292 Total Liabilities S l.l6l $_ 50.500 S 116.906 S 830.026 S 4.10] i 6.64] $ 97.118 S 1.163-428 Fund Balances Designated for capital improvements S_ (1.163) S_ Iso,see) S 1124.1611 S (830.026) $ f4.30]) $ 16.64]) S 197.118) S 1110.292) Total Fund Balances S 11.16]) S (50.500) S 1124.161) S (830.026) $ 14_]07) S 16.647) S 197.118) S 1310.292) TOTAL LIABILITIES AND FUND BAUWC6.9 S -e- S -0• S 212.545 $ -0- $ .e- $ -0- S -e- S 2.853.116 51 CITY OF MONTICELLO Statement D-2 CAPITAL PROJECTS FUND COMBINING STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE For The Year Ended December 31, 1998 Oc.11o/ wade. Restwood school eater southwest Klein cardinal Klein High school Animal Pathways Revenues Oahe 92211 saulevare Ra..rweir Ate. Farms Hills IV Parma 3rd saves sh.ltel lmnrew At interest income 5 2,455 S 22,619 Other Total Revenues S 2.955 L---a2.= Rxn ne der„ e construction contracts $ 13.OS2 Engineering and other S ].521 S 219 S 1.992 $ ]5.061 5 1.096 Total Expenditures S ].521 S 219 S 3.992 $_ ]5.061 S 13.052 S 1.098 Excess (Deficiency) of Revenues over Expenditures 5 11.066) S 22.600 $_ 11.9921 S 135.061) S 113.052) S 11.096) Other P n nein, source, (U... Transfer in $ ],770 Trn.7nfcr out S 092,796) S 132.865) 5 (24,890) $ (74,314) $ 11.422) Bond proceeds Lend sale $ 74,276 Reimbursement of project cost Total Other Financing Sources (Uses) S 79.276 S 1192.7981 S 132.6651 S 124.8401 $ 174.]14) s_ 7.]70 S 11.9221 Excess (Deficiency) of Revenues and Other Sources Over Expenditures and Other Utes $ 11.066) $ 96.676 5 1342,7461 S (32, 66S) 5 (29,872) S 179,319) 5 3,370 S 135.061) $ (13,052) S (1,422) S (1.0981 Fund Balance at beginning of year 91.588 310.086 142.798 32.665 28.872 74.314 11.3701 32-621 119.9091 1.922 1518) FUND BALANCE AT END OF YEAR 5 90.522 L-14.9"S -0- S -n- S -0• S -0- S -0- 5 (2.4901 5 132.9611 5 -O- 5 !1.616) ............. .•................................. ...................................................... .... .................... ....... ..---•--............. .... .--...... ... ................ ...--... ---...... ....... .... BIT? Utilities cardinal Pathwey Rayan.lom Dunda. Briar K1.1t River at. Rmy 25 cardinal K1.1. Re- .... see a nine Rill.y Frmtat Pretae Ro.e Oahe tae Farms 2te I711t RAR astl HHOOI Imo Rills VI F.- 4th Interest income 5 19,601 Other S 65,976 S ]19 Total Revenues $ 19.801 S 769 S 65.976 construction contracts 5 3,094,272 400 Engineering and Other S 285 _ ]99.399 S 2.607 S 382-698 f 6q5 5 239,379 70[x1 Expenditures S 205 S 3.993.671 S 2.807 S 382.691 S 6R5 S 565.779 Excess (Deficiency) of Revenues over Expenditures S 1285) S 11.473.970) S 799 S 12.607) S 1162.6961 S 1685) S 1499.001) Other Financina Source, (Vee.) Transfer in 5 227 5 4,584 S 105,414 5 570 Transfer out $ 1137.8671 S 128,2341 S 131,360) Bond proceeds S 4.291,299 Land Bale Reimbursement of project cost 19.660 5 205.106 Total Other Financing Sources (Uses) S 227 S (12]_1671 $_ 9.504 S 4.291.299 S 128.234) S 105.414 S 111.600) S 570 S 205.106 S 11.120 Excess (Deficiency) of Revenues and Other Sources Over Expenditures and Other Use. $ 227 S (127.667) S 9,299 S 767,429 3 (26.274) $ 106,203 S (14,407) 5 570 5 (177,592) $ 10,135 5 (499.803) Fund Balance at beginning of year (227) 123.167 (4-537) (147.563) 26.234 1106.20]) 14.407 (570) 1127.014) (S.104) 05]_927 PUIM BALANCE AT END OF YEAR s -e- S •e• S 12381 5 19 a S •e• S -0- 5 -e- 5 -e- 5 1]05.976) "=A_3" S 354.120 52 CITY OF MONTICELLO CAPITAL PROJECTS FOND COMBINING STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE For the Year Ended December 31, 1998 Revenues Interest Income Other Total Revenues Exsendir"IUI construction contracts Engineering and other Total Expenditure. Excess (Deficiency) of Revenues over Expenditures ocb r Pee les 9 e Iva el Transfer in Transfer out Bond proceeds land sale Reimbursement of project cost Total Other Finencing Sources ]uses) Excess (Deficiency) of Revenues and Other 6ourcea Over Expenditures and Other uses Pund Balance at beginning of year FLND BALANCE AT END OR YEAR Statement D-2 (Continued) tesorrection Bosdlls Cburcb Matermels Seaer Systm Consaulity Its Street Bridge Park Booster hory Bxtenatm i Matermaln Caster BAoaseias North Malsut WMIp RidOe Co- Reed 118 Total - 3 2,772 $ 113,921 709 $ 2.]72 $ 114.612 S 41,911 S 133,046 S 36,511 $ 4,706 $ 3,649,900 $ 1.161 6.569 1.494.085 793.515 S 6.307 $ 6.647 92-932 3.470.092 $ 1.361 S 50-500 J --L-62].111 S 830.026 S 4.307 S 6.641 S 97.139 S 7.119.962 i Il.l6]) S (50.500) $ 11.624.161) S (810.026) S (4.301) S 16.64]) L ---J91.116) S (7.005-170) s 1.s0v.Dv0 � S 1.500.000 $ 114,165 (659,Ss0) 4.241,299 74,216 1.735.896 S 5.506.076 S (1,363) $ (501500) S (124,361) $ (830,026) S (4.307) S (6,647) S (97,138) $ (1,499.294) 1.1219.002 S 11.361) S 150.500) 1126.761) L --U]0.0") 14.707) 16.647) S 197.118) S 1110.192) 53 CITY OF MONTICELIA PROPRIETARY FUNDS COMBINING BALANCE SHEET December 31, 1999 With Comparative Totals at December 31, 1997 Aeewrc current Assets cash and investments Accounts receivable Inventory Prepaid expenses Total Current Aerate P -g iv fund 6 in Land, buildings and Improvements FTlipeent Less: Accumulated depreciation Property and Equipment - Net Other Assets Special assessments receivable deterred Special nasessmente receivable - delinquent Total Other Assets TOTAL ASSETS LIABILITIES Current Lihilili`t�e Cash deficit ACCOunte payable Accrued expenses Total Current Liabilities Deferred revenue Total Liabilities ,-i,y Contributed capital Retained earnings Total Equity TOTAL LIABILITIES AND EQUITY 0 Serer Water Liquor Fund Fund Fuad $ 471,029 $ 397,261 S 859,963 186,589 66,425 249,860 I 612 1.903 1.902 S 654.100 S 467.589 t 1.111.733 S 24.773,126 $ 6,724,276 $ 200,695 184.264 154.070 R8.182 $ 24.957,990 $ 6,078,346 S 368.877 /6.970.0361 13.043.1071 (266.828) S 24,959 1f 10,401 S 4.D54 17.489 5.048 S 26,057 $ $ (5.333 47.690 9 69,367 40.901 88.791 64.387 5 26.OST S 17,329.504 1.281.693 5 2R.612.997 $ 18.634.05{ $ S 8 S 3,029,426 425_S12 5 1.144.195 4.254.918 S 1.144.395 4 343 T2g $ i-213.702 54 Statement E-1 TOL41 a Transports- Cemetery December 31, December 31, tier, Fund n,nd 1998 1997 $ 12,013 $ 1,740,266 S 1,346,914 $ 15.4B8 023 269,325 222.367 249,060 224.660 7.287 8.874 S 19.488 L -12 -Lu S 2.266.746 S 1.802.015 $ 31,778,691 5 19,176.701 42£_516 i 419.191 S 32,205,211 S 19.597,976 110.287.9711 19.014.0861 5 36.183 S 34.333 4.716 7 363 5 40.401 S 41.696 5 24.221.8 B4 $ 12.478. 401 S 1,338 $ 11318 $ 6.941 $ 20 19,414 64,604 3 la 103.937 $1.660 1.141 $ 34 $ 144.709 S 163.205 40.901 41.696 L-1.111 S 34 S I85 610 5 204-901 $ 21,159,930 S 9.909.964 5 14.147 S 12.802 2.880.149 2.411.S36 S- 34.147 5 12.802 S 24 039.274 5 12.223.500 5 12.836 8 24.224_@fl9 $ 12.428.401 CITY OF MONTICELLO PROPRIETARY FUNDS COMBINING STATEMENT OF REVENUES, EXPENSES AND CHANGES IN RETAINED EARNINGS For The Year Ended December 31, 1998 With Comparative Totale For The Year Ended December 31, 1997 Sat n ed oI sal e Sales Cost of sales Gloe. Ptufit Operation Revenuen Utility user fees, connections, inspection fee. and other operating revenues Total Gross Profit and Operating Revenues Salaries and employee benefit. Utilities Supplies and materials Repairs and maintenance Depreciation Insurance Professional fees Advertising Rlacellansous Total Operating Expen.es Operating Income (Loac) Dther Revenues limen -a ea) Property taxes Interest income (expense) Intergovernmental Cash over (short) Miscellaneous m incoe Rental income Total Other Revenues (Expenses) Income (Ina.) Before Transfers Transfer Transfers out Net Income (Loa.) Retained earnings at beginning of year Depreci eti.n-contributed assets Prior Period Adjustment Retained Earninge at End of Year Contributed capital at beginning of year Asset scontributed during year Depreciation -contributed assets Contributed Capital at End of Year RETAINED EARNINGS/CONTRIBUTED CAPITAL END OF YEAR Seer Water Liquor Fund Fund Fund $ 2,105,252 1.564.025 a 541,227 L_02-111 S 350.961 5 690.421 S 350.961 S 511.227 S 75.254 $ 91,104 S 165,224 3,147 49,177 13.714 17,1]4 60,449 7.656 10,011 4.704 4,731 1.033.619 229,176 11,089 6.711 x.911 6,649 455.263 16.S87 1,981 5.860 30.376 20.097 19.419 S 1.627.552 S 486.205 S (937.131) S (135.224) $ 304.904 S 23,840 5 19,642 S 29,740 1423) 20.625 S 44.465 S 19.642 $ 29.317 S 1892.666) S 1115.582/ S 114.221 $ 1114.000) S (892,666) 5 (115.582) 5 200,221 1,145.841 319,964 944.174 1,030.318 221,13D 9 1.283.493 S 425.512 5 1.144-395 $ 6,172,509 S 3.637,455 12.187.313 413,101 (1.030.318) 1221.110) 5 1].129.501 S 3.829.426 5 18.612.997 S 4.254.918 5 1.144.395 55 Statement E-2 Transports- tion PLnd Cemetery Fund TOTAF December 31. 1998 e December 31, 1997 3 2.105.252 5 1.951,847 1.467.468 1.564.025 $ 541,227 $ 484.379 1.023.229 S 26.]99 5 26.799 6 836 S 22.129 5 22.329 S 1,413 1.090.530 S 1.631-757 S 339.891 S S 1-507.608 315,930 66,033 58,7]1 98 81,371 81,507 19.44619.00] 1,273,684 866,658 22,771 33.031 64.172 20,963 558.966 531.747 232 199 5,860 ]0.325 2.438.051 S S,142 62.093 1.974.081 65.240 S 138.441) S 22.]33 S 1404) S S 1806-296) S 1466.4]31 $ IB 701 S 950 S 74,172 56.505 $ 61.267 61,207 42.462 (423) 141) 5 61.287 22.846 5 950 S 546 20.625 S 155.661 S (650.635) 5�..�3 5 1,799 2t-550 95 L9a5 1]42.5181 S 22.846 $ 546 S 1114.0001 S (784,635) S (342,5181 (8.6991 12.256 2,413,53s 1,649,021 1.251.446 S 837,033 7D-000 2.413.536 14-147 S 12.802 5 2.880.349 S 91809.964 S 9.693,468 12,600.414 753.S29 S 14.147 5 12.802 11.251.44a) 5 21.156-930 S 24.0]9.279 5 t 1637.0]3) 9.809.964 12221 5�0 CITY OF MONTICELLO PROPRIETARY FUNDS COMBINING STATEMENT OF CASH FLOWS For The Year Ended December 31, 1998 With Comparative Totals For The Year Ended December 31, 1997 Cash flows from operating activities: Net income (loan) before transfers Adlustwento to reconcile net income to net cash provided by operating activities: Depreciation Changes in asset. and liabilities iLnerease) decrease in account. receivable (Increase) decrease in inventory (Increase) decrease in prepaid expenses tlncrease) decrease in special aaseaseents receivable - deferred (Increase) decrease in special assessments receivable - delinquent Increase idecrease) in accounts payable increase (decrease) in aced expenses Increase idecroane) in due to other funds Incresae (decrease) in deferred revenue Net Cash provided by operating Activit is$ Cash flown used an neocapital financing activities: Transfers alit Cash flora frown capital related financing activitie.: Capital Expenditures Equipsent building ane improveeenta Net Cash (Used) in financing Activities Nat increase (door-.#-) in cash and cash equivalents Cash and cash equivalents at beginning of year Cash and Cash Equivalents at End of Year P Sever Flnld Water fund Liquor Fund Transports- tion pL_d Cemetery 91ad S (892.666) $ III5.562) $ 334,221 $ 22,646 $ 546 11033,619 229,176 11,069 440 (1.850) t24.782) (10,295) 11.604) (11,806) (73) 12.270 13.110 426,206) 166 357 1,064 (3.85n) 2,645 11,708 5,506 (36,521) (5.435) (4301 120 4,097 6,065 (4) S 126-1d5 1795} 5 111.261 S 292 710 S 5.603 S ,1$ 9 (114 004( Statement E-3 S (357) $ (357) $ 13.196) 5 I1-9811 S (2-.82) MJ1561 ta.011} S 11.984) S 12.482) (357) $ (6.823) S (11.227) $ 124,161 $ 110.179 $ 158,353 $ 51603 $ 19 $ 399,955 S 523,628 56 77tvey-9 December 31, 1998 Decaaber 31, 1997 S 1650,6351 S 1342,5161 1,211.684 666-059 (46.958) 11,7751 125, 2081 123,1601 1,587 440 (1.850) (6,952) 2,645 11.604) 425,1701 21.900 12.270 13.110 S (357) $ (357) $ 13.196) 5 I1-9811 S (2-.82) MJ1561 ta.011} S 11.984) S 12.482) (357) $ (6.823) S (11.227) $ 124,161 $ 110.179 $ 158,353 $ 51603 $ 19 $ 399,955 S 523,628 56 CITY OF MONTICELLO Statement S-4 SEWER FUND COMPARATIVE BALANCE SHEETS December 31, 1998 and 1997 ASSRTS Current Assets Cash and investments 1998 $ 471,029 $ 1007 346,848 Accounta receivable 186,589 161,807 Prepaid insurance 1.482 1,648 Total Current Assets g 6S9 100 S 510.303 P-2,rry a,d Esuisment Land, buildings and improvements $ 24,773,726 $ 12,586,413 Equipment 184.264 180_290 $ 24,957,990 $ 12,766,693 Less: Accumulated depreciation (6.978.036) 15.944.417) Total Property and Equipment - Net S 17.979.954 S 6,A22-276 TOTAL ASSETS S 18.639.654 S 7.332.579 I.TARTLITIEc_ AM EQUITY Current .iah,i,li i s Accounts payable $ 24,959 $ 13,251 Accrued expenses 1.098 978 Total Current Liabilities S 26.u57 3 14,779 pouity Contributed capital $ 17,329,504 $ 6,172,509 Retained earnings 1.283 493 1.145.841 Total Equity S 18.612.997 S 7.318.350 TOTAL LIABILITIES AND EQUITY S 18.639.054 S ,3]2.579 57 CITY OF MONTICELLO Statement E-5 SEWER FUND COMPARATIVE STATEMENTS OF REVENUES, EXPENSES AND CHANGES IN RETAINED EARNINGS - BUDGET (GAAP BASIS) AND ACTUAL For The Year Ended December 31, 1998 With Comparative Totals For The Year Ended December 31, 1997 On -ting Revenue Utility user fees Penalties Inspection fees - improvement projects Miscellaneous Total Operating Revenue Operating B ennen Salaries and employee benefits Telephone Utilities Supplies Repairs and maintenance Professional fees Insurance Depreciation Miscellaneous Total Operating Expenses Operating Income (Loss) Other R v n n (-Kpgn e.) Property taxes - rental Rental income Interest income Total Other Revenues (BxpenseR) Net Income (Loss) 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 1998 1998 1997 Budaet Al tunl Actual $ 585,500 $ 630,353 $ 604,001 2,500 47,674 52,786 2,000 12,364 11,335 44Il i(I in S 590.400 S 690.421 5 66R. 132 $ 66,885 $ 75,254 $ 66,963 2,200 630 288 4,700 3,142 4,233 16,000 13,174 10,328 11000 10,011 1,537 446,250 455,263 436,223 10,670 6,711 10,512 621,650 1,033,619 634,143 11.250 29.748 24.409 9 1.180.605 S 1.627.552 5 1.180.636 S 1590.205) S (937.131) S (520.504) $ 200 $ (820) 22,900 $ 20,625 24,550 a Sen 2a 8an 11 - 58 (892,666) $ (479,588) 1,145,841 995,757 1.030.318 620,672 1.283.493 S 1.145.841 $ 6,172,509 $ 6,340,716 12,187,313 461,465 11.030.318) (629.672) S 17.329.504 S 6.172.509 CITY OF MONTICELLO Statement E-6 SEWER FUND COMPARATIVE STATEMENTS OF CASH FLOWS For The Years Ended December 31, 1998 and 1997 Cash flows from operating activities: Net income (loss) Adjustments to reconcile net income to net cash provided by operating activities: Depreciation Changes in assets and liabilities (Increase) decrease in accounts receivable (Increase) decrease in prepaid expenses Increase (decrease) in accounts payable Increase (decrease) in accrued expenses Net Cash Provided by Operating Activities Cash flows from capital and financing activities: Capital expenditures Land, buildings, improvements 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 59 1908 1997 $ (892,666) $ (479,588) 1,033,619 634,143 (24,782) 1,181 166 290 11,708 (22,325) 12Q 1]S $21 R-165 S 1%1 Ai Fl S (;.984) S (3.984) $ 124,181 $ 133,816 14C.AgJ 23i_Q32 S 71�. n29n29 5 346.848 CITY OF MONTICELLO Statement E-7 WATER FUND COMPARATIVE BALANCE SHEETS December 31, 1998 and 1997 ASSETS 1998 1997 Current Annetn Cash and investments $ 397,261 $ 286,482 Accounts receivable 66,425 56,130 Prepaid insurance 1 gni 4 7U Total Current Assets S 467.589 S 346.872 Prop—ty and E -inm n Land. buildings and improvements $ 6,724,276 $ 6,311,675 Equipment 154.070 ISI -099 $ 6,878,346 $ 6,462,763 Leas: Accumulated depreciation (3.043.107) {2.813.931} Property and Equipment - Net $ 1 915 714 S 3.648.832 Other Annetn Special assessments receivable - deferred $ 36,183 $ 34,333 Special assessments receivable - delinquent 4.718 7-363 Total Other Assets $_ 40.901 S 41.696 TOTAL ASSETS S a. 343.729 S 4.037.a0O UARTT_TTTF_, � AND E4Ct27'Y Current Ll hili i s Accounts payable $ 10,401 $ 4,893 Accrued expenses 37.489 Al 192 Total Current Liabilities $ 47,690 $ 38,285 Deferred Revenue an Qqj 41.696 Total Liabilities S 99.791 S 79.981 c At Contributed capital $ 3,829,426 $ 3,637,455 Retained earnings 425.512 319.964 Total Equity S 4.254.938 5 3 957.419 TOTAL LIABILITIES AND EOUITY 4.343.729 S 4.037.400 60 CITY OF MONTICELLO Statement E-8 WATER FUND COMPARATIVE STATEMENTS OF REVENUES, EXPENSES AND CHANGES IN RETAINED EARNINGS - BUDGET (GAAP BASIS) AND ACTUAL For The Year Ended December 31, 1998 With Comparative Totals For The Year Ended December 31, 1997 1998 Utility user fees $ 220,500 Penalties 1,000 Inspection tees - improvement projects 2,000 Miscellaneous 14,000 Special assessment revenue 1.000 Total Operating Revenues I---z38-U2 Do ra ing R ansa 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) $ r R v nu e ( rQen�aa( 1998 1997 $ 261,124 $ 231,221 1,363 1,230 5,929 3,316 33,910 17,435 40.655 37.840 5 350.981 S 291.042 89,475 $ 97,104 $ 92,991 10,250 16,587 6,473 91910 81911 10,255 11900 1,108 1,714 42,200 49,177 40,216 40,200 60,449 59,777 966 1,456 3,000 4,704 5,924 211,540 229,176 217,790 500 323 75 16 tc;q a25 175 5_486.205 17.700 15.756 4%2.427 (186,825) $ (135,224) 5 1161,385) Interest income 8.400 19 642 15.019 Net Income (Loss) S 117B.a25) $ (115,582) $ (146,366) 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 61 319,964 258,969 221_11Q 207.361 $ 42%_51; S 319.964 $ 3,637,455 $ 3,552,752 413,101 292,064 (221.130) (207.361) S 3.829.426 S 1.617.455 CITY OF MONTICELI.0 Statement E-9 WATER FUND COMPARATIVE STATEMENTS OF CASH FWWS For The Years Ended December 31, 1998 and 1997 Cash and cash equivalents at beginning of year Cash and cash equivalents at End of Year 62 1998 1997 Cash flows from operating activities: Net income (1008) before transfers $ (115,582) $ (146,366) Adjustments to reconcile net income to net cash provided by operating activities: Depreciation 229,176 217,790 Changes in assets and liabilities (Increase) decrease in accounts receivable (10,295) 1,468 (Increase) decrease in special assessments receivable - deferred (11850) (6,952) (Increase) decrease in special assessments receivable - delinquent 2,645 (1,604) (Increase) decrease in prepaid expenses 357 7 Increase (decrease) in accounts payable 5,508 (1,647) Increase (decrease) in accrued expenses 4,097 5,358 Increase (decrease) in deferred revenue (795) R 4CC1 Net Cash Provided by Operating Activities S 113. F1 S 76,610 Cash flows from capital and related financing activities: Capital expenditures Land, buildings. improvements S ,(2.482) ison) Net Cash (Used) in Financing Activities S (2,02) $ (snq) Net increase in cash and cash equivalents $ 110,779 $ 76,110 Cash and cash equivalents at beginning of year Cash and cash equivalents at End of Year 62 CITY OF MONTICELLO Statement E-10 LIQUOR FUND COMPARATIVE BALANCE SHEETS December 31, 1998 and 1997 AqqRTS curr n Aaa a Cash and investments $ 1498 $59,963 $ 1997 701.610 Accounts receivable Inventory 249,868 224,660 Prepaid insurance 1.902 2.966 Total Current Assets S 1.111.733 C 929.236 Progartty and Egniinment Land $ 6,840 $ 6,840 Building and improvements 234.104 234,104 Parking lot 39,751 39,751 Furniture and fixtures sa.182 87.925 $ 368,877 $ 368,520 Less: Accumulated depreciation (266_929) 1259.718) Property and Equipment - Net 5 ,102.049 S 112°792 TOTAL ASSETS S 1.233_782 s 3 042.038 t.IAa3LITIES Affig =1',"Y Curr—r TAahilition Accounts payable $ 4,054 $ 40,515 Accrued expenses 65,333 57,269 Due to other funds Total Current Liabilities S,. 69.187 S1. 97.944 EMUIY Retained earnings s 1.144 19.55 S 944.174 TOTAL LIABILITIES AND EQUITY 5 1.213.792 S 1. 0a, z. nlR 63 64 0 CITY OF MONTICELL) Statement E-11 LIQUOR FUND COMPARATIVE STATEMENTS OF REVENUES, EXPENSES AND CHANGES IN RETAINED EARNINGS e0 r The Year Ended er Decemb11. 199P Por The Year ended Dectmber 11, 1997 Cost of Sale, Sale, Groes Profitoo Percent Sales Salsa Cost of LAIC Gro.. 2606[ Percent to Sales OL"A" Liquor S 590,666 S 410.077 S 180,589 30.581 S 557,372 5 369.409 S 167,961 30.131 wine 223,303 168,698 51,605 24.46 210,553 166,782 43.771 20.79 Beer 1.211.898 915.393 296.505 21.17 1.107.999 ----A 19_]25 268.679 21.25 $ 2,025,867 $ 1,494,168 $ S31,699 26.25\ S 1,075,924 S 1.395.516 S 480,408 25.611 Miscellaneous merchandise 79.]85 60.8]1 18.551 $ 5501250 23.37 26.11\ S 75.921 1.951.847 61.261 S 1.158.777 S 12.662 493,070 16.68 25.26\ Total Off -Sale 5 1.105.252 S 1.555.002 Less: Freight Gross Profit 9.023 S 541,227 .43 25.71\ 5 8-691 484,379 .44 24.821 ODe rating ®menses Salaries and eWloyee benefits $ 165.224 5 151.878 Supplies 7,656 10,641 Repair* and salntenanCe 4,731 11,516 Utilities 13.714 11.322 Telephone 3.155 2.720 Profeeslonel fee. 1,9B1 2, 0S9 Insurance 6,649 12,170 Depreciation 11,009 11,925 Advertiaing expense 5.860 5,101 Miscellaneous 16.2fjf 15.659 Total Gpe.,Liuy Lpansaa 236.323 11.21 241.821 12_]9 Operating Income S ]04.904 14.481 S 211.556 s Other R v s (R- n ea) property t" a Interest income - investemnta $ 29,740 1.421 $ 24,300 1.261 Cash aver (short) (423) 1.02) 141) Total Other Revenue. (Expenses) 5 29.111 1.40\ 5 21.259 1.261 Income Before Transfers 5 334,221 15.881 5 266.815 11.691 Transfers out 1114.0001 (6.37) Net Income $ 200,221 9.51\ $ 266,815 11.69\ Retained earnings at beginning of year 911,174 607,359 Prior Period Adjuateent 70.00(1 RETAINED EARNINGS AT END OF YEAR L-&"1.195 S 911-174 64 CITY OF MONTICELLO Statement E-12 LIQUOR FUND COMPARATIVE STATEMENTS OF CASH FLOWS For The Years Ended December 31, 1998 and 1997 Cash flows from capital and related financing activities: Capital expenditures Building and improvements Equipment Net Cash (Used) in Financing 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 65 $ (7,531) S (357) S (757) S (10.727) $ 158,353 $ 295,756 1998 1997 Cash flows from operating activities: Net income before transfers $ 334,221 $ 266,815 Adjustments to reconcile net income to net cash provided by operating activities: Depreciation 11,089 14,925 Changes in assets and liabilities (Increase) decrease in accounts receivable (31) (Increase) decrease in inventory (25,208) (23,160) (Increase) decrease in prepaid expenses 1,064 143 Increase (decrease) in accounts payable (36.521) 40,100 Increase (decrease) in accrued expenses 8.05$ 7.691 Net Cash Provided by Operating Activities S 292.710 S 306.483 Cash flows used in noncapital financing activities: Transfers out S (134.000) Cash flows from capital and related financing activities: Capital expenditures Building and improvements Equipment Net Cash (Used) in Financing 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 65 $ (7,531) S (357) S (757) S (10.727) $ 158,353 $ 295,756 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, 1998 Off ca_le Gross Profit Liquor $ Huda— 139,550 $ A +a1 180,589 wine 62,500 54,605 Beer 264,600 296,505 Miscellaneous _7.620 18 SSI Total Off Sale Grose Profit $ 484,270 $ 550,250 Less: Freight 9.000 9.023 Total Grose Profit $ 475,270 $ 541,227 On—ting Kxngn— Salaries and employee benefits $ 152,095 $ 165,224 Supplies 9,300 7,656 Repairs and maintenance 7,000 4,731 Utilities 14,350 13,714 Telephone 2,400 3,155 Professional fees 3,350 1,981 Insurance 12,065 6,649 Depreciation 14,500 11,089 Advertising expense 4,500 5,860 Miscellaneous 4.135 16-264 Total Operating Expenses 223.695 236.323 Operating Income a 251. K7S 5 304.9n4 Other Roy ... a t -x—,,o,) Interest income - investments $ 16,200 $ 29,740 Cash over (short) (200) (421) Total Other Revenues (Expenses) S 16.000 S 29.317 INCOME BEFORE TRANSFERS S 267.57c S 3]4.221 66 CITY OF MONTICELLO Statement B-14 TRANSPORTATION FUND COMPARATIVE BALANCE SHEETS December 31, 1998 and 1997 Accounts receivable TOTAL ASSETS 1.IAw1r.I1IES AND EQUITY C,irranr LiAhiliri— cash deficit Accounts payable Accrued expenses Total Current Liabilities EQYILX Retained earnings TOTAL LIABILITIES AND EQUITY 67 1998 1997 S 1S.48R s 3.6RD f t9_aag I f;A $ 1,338 $ 6,941 5.435- 3 ,6353 E, 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, 1998 With Comparative Totals For The Year Ended December 31, 1997 no ra ina Revenues Passenger fares Property taxes Total Operating Revenues ip ra inarxpnn_ nes Salaries and employee benefits Supolies Professional services Advertising Miscellaneous Total Operating Expenses Operating (Loss) Orb— R v n+ a f&,—Pa) Intergovernmental Miscellaneous Interest income (expense) Total Other Revenues (Expenses) Net Income (Loss) Retained Earnings at beginning of year Retained Earnings at End of Year 1998 1998 1997 gy(lcet Actual &C—.1 $ 12,200 $ 10,127 $ 12,777 16.612 16.672 14 &21 5 2&.812 1---Z6.799 5 27.600 $ 3,385 $ 836 $ 822 260 490 67,450 L4, 172 66,066 41 935 232 10Q S 72.0]0 S 65.240 67.52& $ (41. 21R) 5 (38.441) $ 43,218 $ 61,287 $ 42,462 1,299 (41 S) C 41 21!i 5 61.2&7 5 43.396 C - $ 22,846 $ 3,418 68 CITY OF MONTICRLLO Statement E-16 TRANSPORTATION FUND COMPARATIVE STATEMENTS OF CASH FLOWS For The Years Ended December 31, 1998 and 1997 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 receivable Increase (decrease) in accounts payable Increase (decrease) in accrued expenses Net Cash Provided {Used) by Operating Activities Net hivreaae (decrease) in cash and cash equivalents Cash and Cash Equivalents at beginning of year Cash and Cash Equivalents at End of Year 69 1998 $ 22,846 $ 1997, 3,418 (11,808) (3,643) (5,435) 5,397 lsq) ,s a 6n1 S 5.122 $ 5,603 $ 5,122 (6 9U) (12.061) CITY OF MONTICELLO Statement E-17 CEMETERY FUND COMPARATIVE BALANCE SHEET December 31, 199E and 1997 ASSETS Cash Accounts receivable TOTAL ASSETS LIABILITIES AND EQUITY Current Liabilities Cash deficit Accounts payable Accrued expenses Total Current Liabilities F.—ity Retained Earnings TOTAL LIABILITIES AND EQUITY 70 199R 1997 $ 12,013 $ 11,970 qu 75.9 4__12–alk S� 12,724 $ 20 $ 450 14. 1B 5 it 5 4C.8 S 12,802 S 12.256 S 12.81$ 12.724 CITY OF MONTICELLO Statement E-18 CEMETERY FUND STATEMENTS OF REVELRIES, EXPENSES AND CHANGES IN RETAINED EARNINGS - ACTUAL For The Years Ended December 31, 1998 and 1997 71 1998 Actual 1997 Aetual Oo ra ing Revenues Grave site Bales $ 10,225 $ 11,750 Excavation charges 12,081 11,110 Refunds/ reimbursement a 21 19 we Total Operating Revenues S 22.]29 5 36.455 Qy ra lugExpenses Salaries and employee benefits $ 1,473 $ 3,277 Professional services 20,963 20,126 Supplies 98 264 Miscellaneous expense 19.2 Total Operating Expenses S 22.793 S 23.667 Operating Income (Loss) S (404) 5 12.788 D F r R V nu s Interest income 4 Q90 S 415 Total Other Revenues $ e5q $ 415, Net Income (Loss) $ 546 $ 13,203 Retained earnings at beginning of year 12.256 (947) Retained Earnings at End of Year S 12.802 e n —1 71 CITY OF MONTICEU O Statement E-19 CEMETERY FUND COMPARATIVE STATEMENTS OF CASH FLOWS For The Years Ended December 33, 1998 and 1997 Cash flows from operating activities: Net income (lose) before transfers Adjustments to reconcile net income to net cash provided by operating activities: (Increase) decrease in accounts receivable Increase (decrease) in accounts payable Increase (decrease) in accrued expenses Net Cash Provided (Used) by Operating Activities Net increase in cash and cash equivalents Cash and cash equivalents at beginning of year Cash and Cash Equivalents at End of Year 72 1,998 $ 546 1997 $ 13,203 (73) (750) (430) 375 (4) (4) 5 19 g 12, N,24 $ 39 $ 12,824 11.914 (BSO) 1999 2000 2001 2002 2003 2004 TOTAL Original Amount CITY OF MONTICELLO BONDED INDEBTEDNESS - GENERAL OBLIGATION BONDS December 31, 1998 Schedule 1 General Obligation General Obligation General Obligation water System Sewer Interceptor Refunding water System Refunding Bond Series 1988B Bond Series Princinal 1996C Bond Series Princinal 1998B TOjgl Interest Interest _ Interest Princinal Principal Interest $ 80,000 $ 37,962 $ 95,000 $ 17,410 $ 12,397 $ 175,000 $ 67,769 85,000• 32,310 100,000 12,948 $ 90,000 17,065 190,000 30,013 95,000• 26,053 105,000 8,129 100,000 13,785 205,000 21,914 100,000• 19,203 115,000 2,817 105,000 10,145 220,000 12,962 105,000• 11,950 105,000 6,312 105,000 6,312 115.000• 4.111 115.000 2.165 115. OQQ 2.185 S 580.000 171 SA! $ 415.000 5 41.304 S 515.00Q S 61.889 S 1.010., OoQ S 141.154 Average rate of interest 6.9943% 4.8811% 3.9982% Payment dates February i February 1 February 1 February 1 February 1 February 1 August 1 August 1 August 1 • To be paid February 1, 1999 with cash in escrow accounts established with 19986 refunding bond proceeds. 73 CITY OF MONTICELLO BONDED INDEBTEDNESS - GENERAL OBLIGATION SPECIAL ASSESSMENT BONDS December 31, 1998 Schedule 2 74 General Obligation General Obligation General Obligation General Obligation General Obligation Sever/Nater and Street Bond of 1977 Improvement Band Series 19698 Improvement Band Slrles 1990C Improvement Band Serien 1991_ Interest Improvement mond Series 1992A Prin�QjVAj-- Interest 1999 Prinrinal Ince teat $ 60.000 5 1,650 Principal $ 10.000 Interest S 2,970 priacieal $ 25.000 interest 5 6,921 kLLWn 5 70.000 $ 2,047 S 75,000 1 17.0]0 2000 70,000 990 30,000 5,085 70.000 17.75] 2001 30,000 3,068 70,000 9.695 2002 30.000 1,028 70,000 70,000 5.915 1,995 2003 2004 2005 2006 2007 TOTAL S 60.000 5 1.650 S 60.000 5 ]-960 S 115.000 5 16.10? S 70.000 5 2.047 S ]55.000 S 47.988 Original Amount 5 ]-47o. pod S 245.000 5 250.000 5 515.000 5 705.000 Average rate of interest 5.21\ 6.61181 6.75061 5.7265\ 5.25251 Payment date. February 1 February 1 February 1 February 1 February 1 February 1 February 1 February I February 1 February 1 August I August 1 August I August 1 August 1 ....................................................................................................................................................................................... General Obligation General Obligation General Obligation General Obligation Refunding Bond Series 1994. Prinelo 1 Interest Improvement Bend Series 1995. Pr nclmel Interest Improvement Bond Series 1996. _ Pr nci� final interest Improvement Bond Se rice 1997A Cr nmi S��nl Interest Total Prtneinal interest 1999 5 170,000 5 29.288 S 485.000 1 140.357 $ 135,000 5 77,660 5 65,712 5 1.000.000 $ 103.670 2000 120,000 24,547 680.000 118.400 1]5,000 71,484 $ 500,000 55,467 1.]65,000 249.324 2001 120,000 19.628 480.000 96,Oe0 140,000 :5,020 400,000 36.913 1.240,000 190,404 2001 175.000 14. JB9 485.000 73.160 60.000 20,225 400,000 20,217 1.110,000 114,929 7001 125,000 8.857 485,000 69,677 65,000 11,110 150.000 8,619 895,000 86.244 2004 130,000 7,027 245,000 ]1,670 70,000 13,720 125,000 2,719 570,000 51.092 7005 245,000 39.]19 70,000 10.115 15.000 '31.:0 29.434 2006 255.000 6.566 75.000 6.707 770.000 80.000 17.877 2-160 2007 80.000 2.160 TOTAL $ 740.000 S 99.712 5 ].160.000 5 515.144 S 6]0.000 1�6 r.621t.621 5 1�575y00 5 IB 9.644 S 6.965.000 S 1.060.088 Original Amount 5 965.000 S ].890.000 S 1.030.000 Average rate of interest 4.23121 4.96471 S.15071 Payment dates February 1 Febmary 1 February 1 February 1 February I February 1 February 1 February 1 August 1 August 1 August 1 August 1 74 75 CITY OF MONTICELIA) Schedule 3 BONDED INDEBTEDNESS - GENERAL OBLIGATION TAX INCREMENT BONDS December 31, 1998 General Obligation General Obligation General Obligation General Obligation General Obligation General Obligation Tax Increment Bond a1 '— Pzincioai Interest Tax Increment Refunding Bend of 19B9A pzin.-lsai InterestPri_y,.ipn1 Tax Increment Bend Series 19900 Interest Tax Increment Bond Series 1992 Tax Increment Bond Series 1992D Tax Increment Bond Series Refunding 199611 Total 1999 $ 20,000 $ 17,445 $ 1S1000 $ 16,900 $ 45,000 $ 6.001 Frieze Seal Intaren[ $ 151000 $ 3,738 princicel Interesr $ 10,000 5 2,275 pr lneionl $ 125,000 111—tat Pri $ 6,765 $ ci ag_1 _ 230,000 Interest $ 53.133 2000 20:000 15.805 3S.000 15,603 45,090 21002 20.000 2,600 20,000 1,6:5 85, �0G 1.9?£ 195.000 39,611 2001 25.000 13,954 20,000 14,060 20,000 1.300 10,000 975 15.000 30.309 2002 25,000 11,891 20,000 12,335 10.000 325 10,000 325 65.000 24.876 2003 2004 30,000 30,000 91615 7,125 20,000 10,585 25,000 8,620 50.000 20,200 551000 15,735 2005 15,000 4,410 25,000 6,410 2006 35,000 1.470 30,000 3,982 60,000 10.820 IOD7 30.000 1.328 b5, 000 10.000 5,{52 1.728 TOTAL $ 220.000 Ra B1 7397rc $ 200.000 5 B9. 833 S 90.000 SSB pip $ dS.00tl $ ].96] S 30.000 S 9.200 S 210.000 S.. 8.741 $ 125.000 $ 201. 4d2 Original Amount 35n_p00 $ 260.004 $ 309.000 $ 12e.400 $ ]t nn0 $mss sQ ,7�p Average rate of interest 8.2893% 7.25321 8.99281 6.S4% 6.501 4.69831 Payment date* February I Febnlary 1 February I February 1 February 1 February 1 February 1 February 1 February 1 February 3 February 1 February 1 August 1 August I August 1 August 1 August I August 1 75 CITY OR MONTICELLO Schedule 4 GENERAL OBLIGATION NOTE 1998 WASTEWATER TREATMENT NOTE 1999 Principal $ 487,455 rnt-r,,r $ 594,838 Total $ 1,082,293 2000 507.546 574,747 1,082,293 2001 528,465 553,828 1,002,293 2002 550,246 S32,047 1,082,293 2003 572,925 509,368 1,002,293 2004 596,539 485,754 1,082,293 2005 621,126 461,167 1,002,293 2006 646,726 435,567 1,082,293 2007 673,382 408,911 1,082,293 2008 701,136 381,157 1,082,293 2009 730,034 352,259 1,082,293 2010 760,123 322,169 1,082,292 2011 791,452 290,840 1,082,292 2012 824,073 258,219 1,082,292 2013 858,038 224,254 1,082,292 2014 $93,403 188,889 I,082,292 2015 930,226 152,066 1,082,292 2016 968,566 113,726 1,082,292 2017 1,008,487 73,806 1,082,293 2018 1.n50.052 32 Zai 1_082.293 TOTAL44,700 000000 $ 6.48c� e2+c nc1 NOTE: As of December 31. 1998 the City has only withdrawn $14,259,700, consequently the General Long Term Debt Account Group and the changes in Lang Term Debt note only show a liability of $14,259,700. 76 CITY OF MONTICELLO BONDED INDEBTEDNESS - PUBLIC PROJECT REVENUE BONDS December 31, 1998 1999 2000 2001 Total Original Amount Average Rate of Interest Schedule 5 Temporary Public Project Revenue Bonds A.H .. 1998 Principal Interest $ 221,550 332,325 S 7.385.000 166.161 5 7.]Bs.000 S 720.038 S 7.185.000 4.49474 Payment Dates February 1 February 1 August 1 77 CITY OP MONTICELL0 Schedule 6 TAX LEVIES TO RETIRE BONDED INDEBTEDNESS December 31, 1998 General General General Oenerai General General General General General General Obligation Obligation Obligation Obligation Obligation OLIigation Obligation Obligation Obligation Obligation Sever Mater Meter System Tax increment Water System Improvement Improvement Improvement lcprc, —_ent I•rrovement Interceptor system Year of Collet- Bond Series Bond Series Bond Series Hand Series Bond Serie. Bond Serie. Bond Series Bond Series Refunding Bonds Retunding Bonds I,—tion 1988H 1989A 1999B 19900 1992. 1$,94A _ 199SA 1996A erica 1_2fic series 19988 1996 1999 S 126.255 $ 32,816 s 24,813 S 26,425 S 7,576 S 134,742 $ I59.172 S 73,SOO S 118.100 S 116,900 1999 7000 1]0,597 36.698 25.054 8,140 170,916 359, 606 77,000 110,600 321,400 2000 2001 128. ab4 79,$71 23, 6fi8 8,547 132.075 364.957 500 127.000 127,900 2001 2002 126712 33,0]3 8.902 127,490 164,206 6.700 119.000 2002 20D23 129,,384 36,446 127.998 166,355 12,700 125,400 2003 2004 74.136 160.593 13,000 20042005 17,076 165,206 18.600 2005 2006 34-280 23.700 TWAT. $ 64 i. 812 9 279.365 A — — 24.$13 1—7S.34T S 33.211 653.237 5 1.340.172 5 225.700 e�.x>• ]6 00 S 605.600 • This tax levy is for tax increment financing projects. The levy has 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. NOTE: The 1997 General Obligation Note requires a levy of $541,146 in 1997, annual levies Of $1,082.243 from 1998 to 2016, and $541,146 in 2017. 78 Cmredpu6lA' 194 Mlhhr. iWle I 611 5ralnW 4[Nn., PO n 417. SWIr I Bp� All—,I rnb and Ian M'1101N 55314 (6111.1 .71 2 I Mimtk'111. N 554u2 (612) 2" Sr, I /V� Ruiuuv fnnsWfunn 'a5 C -1r.1 A— U.. Pl), Dn 3V1 SWIG 9 SI. Michael, MN 55376 (612) 49;2119 &��cens 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 ae of and for the year ended December 31, 1998, and have issued our report thereon dated June 16, 1999. we conducted our audit in accordance with generally accepted auditing standards and the provisions of the Minnesota Legal o lien— Av Alr (.,iA- for Local Government promulgated by the Legal Compliance Task Force pursuant to Minn. Stat. 6.65. Accordingly, the audit included such tests of the accounting records and such other auditing procedures as we considered necessary in the circumstances. The Minnesota Legal Co li r, Audit Guide for 1 al r1gyprnmPnt covers five main categories of compliance to be tested: contracting and bidding, deposits and investments, conflicts of interest, public indebtedness, and claims and disbursements. Our study included all of the listed categories. The results of our tests indicated that, for the items tested, the City of Monticello complied with the material terms and conditions of applicable legal provisions. 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 purpose. This restriction is not intended to limit the distribution of this report, which is a matter of public record. June 16, 1999 Gru s Borden Carlson 6. Associates P.A. Certified Public Accountants 79 CITY OF MONTICELLO, MINNESOTA REQUIRED SUPPLEMENTARY INFORMATION YEAR 2000 ISSUE Unaudited The year 2000 issue is the result of shortcomings in many electronic data processing systems and other electronic equipment that may adversely affect an organization's operations as early as fiscal year 1999. There are four stages of work involved in the year 2000 (Y2K) issue: (1) awareness; (2) assessment; (3) remediation; and (4) validation/testing. The City is in the remediation stage. The City is in the process of completing an inventory and assessment of all of its computer hardware and software systems and other electronic equipment that may be affected by the year 2000 issue and that are necessary to conducting City operations. This assessment process also includes communicating with the providers of power supply and transmission service, plant operators, vendors and others to confirm that they are also taking steps to ensure that their equipment and services are Y2K ready. The City is also working on updating contingency plans for essential services, and is coordinating efforts with the Wright County Y2K Task Force. The City is currently in the process of modifying, repairing and replacing all equipment, software and systems that were found to have significant Y2K problems. This process is focusing first on mission critical systems and then working toward the least critical systems. Systems will be tested as they are modified or repaired to verify that they are Y2K ready. The projected completion date for this combined remediation and validation/testing phase is September 30, 1999. Because of the unprecedented nature of the Year 2000 issue and its effects, the success of related remediation efforts will not be fully determinable until the year 2000 and thereafter. Management cannot assure that the City is or will be year 2000 ready, that the City's remediation efforts will be successful in whole or in part, or that parties with whom the City does business will be year 2000 ready. 80