2014 Monticello Annual Comprehensive Financial ReportCITY OF MONTICELLO,MINNESOTA
ComprehensiveAnnualFinancialReport
FORTHEFISCALYEARENDEDDECEMBER31,2014
CityofMonticello
WrightCounty,Minnesota
COMPREHENSIVE ANNUAL FINANCIAL REPORT
YEARENDEDDECEMBER31,2014
Preparedby
THE“FINANCETEAM”
JulieCheney,FinanceAssistant
RaeLynnCooks,Payroll-FinanceClerk
DebbieDavidson,FinanceClerk
PatKovich,UtilityBillingSpecialist
AngieMcIntire,AssistantFinanceDirector
WayneW.Oberg,FinanceDirector
CITYOFMONTICELLO
ComprehensiveAnnualFinancialReport
TableofContents
December31,2014
INTRODUCTORYSECTION Page
LetterofTransmittal 1
GFOACertificateofAchievementforExcellenceinFinancialReporting 4
OrganizationChart 5
DirectoryofOfficials 6
FINANCIALSECTION
IndependentAuditor'sReport 7
Management'sDiscussionandAnalysis 9
BasicFinancialStatements
Government-wideFinancialStatements
StatementofNetPosition 19
StatementofActivities 21
FundFinancialStatements
BalanceSheet-GovernmentalFunds 22
ReconciliationoftheGovernmentalFundsBalanceSheettotheStatementofNetPosition 23
StatementofRevenue,ExpendituresandChangesinFundBalances-GovernmentalFunds 24
ReconciliationoftheStatementofRevenues,ExpendituresandChangesinFundBalancesofGovernmentalFundsto
theStatementofActivities 25
StatementofNetPosition-ProprietaryFunds 26
StatementofRevenues,ExpensesandChangesinNetPosition-ProprietaryFunds 29
StatementofCashFlows-ProprietaryFunds 30
NotestotheFinancialStatements 32
RequiredSupplementaryInformation
SchedulesofFundingProgress 53
ScheduleofRevenues,ExpendituresandChangesinFundBalance-BudgetandActual-GeneralFund 54
ScheduleofRevenues,ExpendituresandChangesinFundBalance-BudgetandActual-CommunityCenterFund 56
ScheduleofRevenues,ExpendituresandChangesinFundBalance-BudgetandActual-EconomicDevelopmentAuthorityFund 57
NotestotheRequiredSupplementryInformation 58
CombiningIndividualFundStatements
NonmajorGovernmentalFunds
CombiningBalanceSheet 59
CombiningStatementofRevenues,ExpendituresandChangesinFundBalances 60
InternalServiceFunds
CombiningStatementofNetPosition 61
CombiningStatementofRevenues,ExpensesandChangesinNetPosition 62
CombiningStatementofCashFlows 63
(continued)
I
CITYOFMONTICELLO
ComprehensiveAnnualFinancialReport
TableofContents
December31,2014 (continued)
Page
OtherSupplementrySchedules
ScheduleofAssets,Liabilities,DeferredInflowsofResources,andFundBalances-DebtServiceActivities 65
ScheduleofRevenues,ExpendituresandOtherFinancingSources(Uses)-DebtServiceActivities 66
ScheduleofRevenues(Sources)andExpenditurres(Uses)-GeneralFund 67
STATISTICALSECTION
Financialtrends
NetPositionbyComponent-LastTenFiscalYears 71
ChangesinNetPosition-LastTenFiscalyears 72
FundBalancesofGovernmentalFunds-LastTenFiscalYears 74
ChangesinFundBalancesofGovernmentalFunds-LastTenFiscalYears 75
GovernmentalFundsTaxRevenuesbySource-LastTenFiscalYears(modifiedaccrualbasis)76
GeneralGovernmentalTaxRevenuesbySource-Last10FiscalYears(accrualbasis)77
Revenuecapacity
TaxCapacityValueandEstimatedMarketValueofTaxableProperty-LastTenFiscalYears 78
PropertyTaxRates-AllDirectandOverlappingGovernments-LastTenFiscalYears 79
PropertyTaxLeviesandCollections-LastTenFiscalYears 80
PrincipalPropertyTaxpayers-CurrentYearandNineYearsAgo 81
WaterSoldbyCustomerType-LastTenFiscalYears 82
WaterandSewageUtilityRates-LastTenFiscalYears 83
Debtcapacity
RatiosofOutstandingDebtbyType-LastTenFiscalYears 84
RatiosofNetGeneralObligationBondedDebtOutstanding-LastTenFiscalYears 85
LegalDebtMarginInformation-LastTenFiscalYears 86
ComputationofDirectandOverlappingDebt 87
ScheduleofRevenueBondCoverage-LastTwoFiscalYears 88
Economicanddemographicinformation
Demographic&EconomicStatistics-LastTenFiscalYears 89
PrincipalEmployers-CurrentYearandNineYearsAgo 90
Operatinginformation
CityGovernmentEmployeesbyFunction/Program-LastTenFiscalYears 91
OperatingIndicatorsbyFunction-LastTenFiscalYears 92
CapitalAssetsStatisticsbyFunction-LastTenFiscalYears 94
II
INTRODUCTORY SECTION
LetterofTransmittalCITYOFMONTICELLO
FinanceDepartment
June25,2015
TotheHonorableMayor,MembersoftheCityCouncil,andtheCitizensof
theCityofMonticello:
IampleasedtopresenttheComprehensiveAnnualFinancialReport
(CAFR)oftheCityofMonticello,Minnesota(thecity)forthefiscalyear
endedDecember31,2014.Responsibilityforboththeaccuracyofthedata
andthecompletenessandfairnessofthepresentation,includingall
disclosures,restswiththecity.Tothebestofourknowledgeandbelief,the
encloseddataisaccurate,inallmaterialrespects,andisreportedina
mannerdesignedtopresentfairlythefinancialpositionandresultsof
operationsofthevariousfundsofthecity.Alldisclosuresnecessaryto
enablethereadertogainanunderstandingofthecity’sfinancialactivities
havebeenincluded.
Managementassumesfullresponsibilityforthecompletenessandreliability
oftheinformationcontainedinthisreport,baseduponacomprehensive
frameworkofinternalcontrolthatithasestablishedforthispurpose.
Becausethecostofinternalcontrolshouldnotexceedanticipatedbenefits,
theobjectiveistoprovidereasonable,ratherthanabsolute,assurancethat
thefinancialstatementsarefreeofanymaterialmisstatements.
Thecity’sfinancialstatementshavebeenauditedbyMalloy,Montague,
Karnowski,Radosevich&Co.,P.A.(MMKR),afirmoflicensedcertified
publicaccountants.Thegoaloftheindependentauditwastoprovide
reasonableassurancethatthefinancialstatementsofthecityforthefiscal
yearendedDecember31,2014arefreeofmaterialmisstatements.The
independentauditinvolvedexamining,onatestbasis,evidencesupporting
theamountsanddisclosuresinthefinancialstatements,assessingthe
accountingprinciplesusedandsignificantestimatesmadebymanagement,
andevaluatingtheoverallfinancialstatementpresentation.Theindependent
auditorconcluded,basedupontheaudit,thattherewasareasonablebasis
forrenderinganunmodifiedopinionthatthecity’sfinancialstatementsfor
thefiscalyearendedDecember31,2014,arefairlypresentedinconformity
withaccountingprinciplesgenerallyacceptedintheUnitedStatesof
America.Theindependentauditor’sreportispresentedasthefirst
componentofthefinancialsectionofthisreport.
ThepreparationofthisCAFRisarequirementofstatelaw.Also,theCAFR
isrequiredbythebondratingagenciesbeforetheywillratethecity’sbonds.
Thereportcanbeusedbythecitycouncilandthecitizensofthecitytogain
abetterunderstandingofthefinancialconditionofthecity.
AccountingprinciplesgenerallyacceptedintheUnitedStatesofAmerica
requirethatmanagementprovideanarrativeintroduction,overview,and
analysistoaccompanythebasicfinancialstatementsintheformof
Management’sDiscussionandAnalysis(MD&A).Thisletteroftransmittalis
designedtocomplementtheMD&Aandshouldbereadinconjunctionwith
it.Thecity’sMD&Acanbefoundimmediatelyfollowingthereportofthe
auditors.
PROFILEOFTHECITY
ThecityissituatedinaprimelocationonInterstate94betweencitiesof
Minneapolis/St.PaulandSt.Cloud.Thecityhasexperiencedtremendous
growthwithinthelast15yearsintheresidential,commercial,office,and
retailsectors.Thecityisarapidlygrowing,freestandingurbanfringe
communityencompassingapproximately5,000acresandapopulation
nearing13,000.ThecityishometooneofMinnesota’stwonuclearpower
plants,bothownedbyXcelEnergy,Inc.(NYSE:XEL).Withasmallcarbon
footprint,theXcelplantisalsothecity’slargestemployerandproperty
taxpayer.Additionally,Monticello’sbusinessfriendlyenvironmentprovidesa
homeforCargillKitchenSolutions.Theprivately-owned,agri-giantisthe
city’slargestcustomerofwaterandsewageutilityservices.
Thecitywasfoundedbysecond-generationAmericanswhomigratedwest
inthemid-1800s.Earlysettlersfoundthegentlyslopingbanksandshallow
riverlevelsoftheMississippiRivermadealogicalplaceforarivercrossing.
Incorporatedin1856,thecitygrewquicklyduringtheearlysettlementyears
andthenleveledtoapopulationofabout1,300.Itwasthisoriginal
settlementthatbecamethecorecityandsurvivestodayasdowntown
Monticello.
Thecityoperatesunderthe“OptionalPlanA”formofgovernmentasdefined
inMinnesotaStatutes.Underthisplan,thegovernmentofthecityisdirected
byacitycouncilcomposedofanelectedmayorandfourelectedcouncil
1
LetterofTransmittalCITYOFMONTICELLO
members.Thecitycouncilexerciseslegislativeauthorityanddeterminesall
mattersofpolicy.Thecitycouncilappointspersonnelresponsibleforthe
properadministrationofallaffairsrelatingtothecity.Councilmembersserve
four-yearterms,withtwomemberselectedeverytwoyears.Themayoris
electedforatwo-yearterm.Themayorandmembersofthecitycouncilare
electedatlarge.
Thecityprovidesafullrangeofservices:theconstructionandmaintenance
ofstreetsandotherinfrastructure;snowremoval;parkandcemetery
maintenance;recreationalandculturalactivities;water,sewer,surface
water,residentialgarbage,andrecyclingsystems;communitydevelopment,
buildinginspection,planning,police,fire,andliquorstoreoperations;acity-
runfiberopticsystemandcommunitycenter;andgeneralgovernment
operations,includingadministration,finance/accounting,information
systems,communityinformation,andgeneralgovernmentbuildings.
ThecitycouncilisrequiredtoadoptafinalbudgetbylateDecemberforthe
subsequentyear.Thebudgetispreparedbyfund,function(e.g.public
works),anddepartment(e.g.streetsandalleys).Transfersofappropriations
betweenfundsrequiretheapprovalofthecitycouncil.Thelegallevelof
budgetarycontrolisthedepartmentlevelintheGeneralFundandfundlevel
inallotherfunds.Budgetamendmentsrequirecitycouncilapproval.
FINANCIALPLANNINGANDTHELOCALECONOMY
Thecityisrecoveringslowlyfromrecenteconomicwoesthathaveaffected
othercommunitiesinWrightCountyandthroughoutthestateofMinnesota.
Thenuclearpowerplantprovidesthecitywitharelativelystabletaxand
employmentbase.Duringtheeconomicdownturn,newcommercial
developmentcametovirtualstandstillandtodaygrowthremainsanemic.
However,thecitylostveryfewofitslocalbusinesses,althoughsome
reducedtheirworkforceandscaledbackoperations.Therapidresidential
growthstartingnearlyadecadeagohasslowedsignificantlybutthecitywas
nothitwithalargenumberofforeclosedhomes.
Inthepast,thestateofMinnesotahasreducedlocalgovernmentaid(LGA)
andthemarketvaluehomesteadcredit(MVHC)tocitiesandcountiesasa
waytobalanceitsownbudget.SincethecitydoesnotreceiveLGA,the
city’sfinancesarerelativelyinsulatedfromthestate’sbudgetproblems.In
2012,thestateeliminatedtheMVHCandreplaceditwithaMarketValue
Exclusionprogram,whichthecityincorporatedintoits2014budget.The
newprogramshiftedmoreofthetaxburdentononresidentialproperty
taxpayers.
Theeconomyandhousingmarkethasalsoaffectedcityrevenuesfor
buildingpermits.Thecityissued1,412buildingpermitsin2005withatotal
valuationof$68,069,444.In2014,thecityissued721permitswithatotal
valuationof$19,714,896.Inquiries,fieldedbytheBuildingDepartment,
indicate2015residentialhousingpermits(new)willcompetewith2014
totals.
Fortunately,thecitydoesnotrelyonthestateasamajorfundingsource
(LGA).Inaddition,thecityhasbudgetedconservativelyovertheyears,
resultinginverymodestgrowthinthepropertytaxlevy.Toassistexternal
stakeholders,thecityisexploringvariouswaystobetterrepresentits
financialposition,suchastheeliminationofallinterfundloans/receivablesin
2012.Otherinitiativesincludeconsolidatingfundswithsimilarpurposes,
distributingunallocatedexpensesandaggregatingsimilarcostsfor
distributionassingleamountstoeachbudgetunit(i.e.ITServices–Internal
ServicesFund)in2013.
MAJORINITIATIVES
Thecityhasthreemajorongoinginitiativesin2014.Thefirstongoing
initiativeistherevitalizationofitshistoricdowntown.Thedowntownisthe
oldestpartofthecityandmanyofthebuildingsareinneedofmaintenance.
2
LetterofTransmittalCITYOFMONTICELLO
Inaddition,theamountoftrafficonStateHighway25andCountyRoad75
makesbothvehicleandpedestriantrafficdifficulttomovefromoneareaof
thedowntowntoanother.Becauseoftheseissues,anumberofthestore
frontsareunoccupied.Toaddresstheseissues,thecitycompletedan
EmbracingDowntownMonticelloinitiativewiththegoaltoidentifyneeded
improvementsandenhancements,whichwillonceagainmakethe
downtownareaavibrantshoppingandresidentdestination.Thechallenge
movingforwardwillbetheimplementationoftheplanandcreating
developmentopportunitieswithinthedowntownareafornewandexisting
businesses.
ThesecondongoinginitiativeisthejointpurchasewithWrightCountyof
BertramChainofLakesproperties.ThecityandWrightCountyhavealready
acquired750acresofthe1,200acresite.The1,200acresiteincludesfour
pristinelakesandwoodlands,whichwhenpurchasedwillbecomearegional
park.WrightCountyandthecityobtainedmatchinggrantfundsfromthe
statetopurchaseadditionalacreagein2014.
Stabilizingtheoperationsofthecityfiberopticsoperationsisthelast
initiative.Afterasuccessionofgeneralmanagersandsettlementofthe
bondholderclaims,thecityispositionedtomoveforwardwithaleaner,less
expensivetelecommunicationsutility.
INTERNALCONTROL
Themanagementofthecityisresponsibleforestablishingandmaintaining
internalcontroldesignedtoensurethattheassetsofthecityareprotected
fromloss,theft,ormisuseandthatadequateaccountingdataiscompiledto
allowforthepreparationoffinancialstatementsinconformitywith
accountingprinciplesgenerallyacceptedintheUnitedStatesofAmerica.
Thecity’sinternalcontrolsaredesignedtoprovidereasonable,butnot
absoluteassurancethattheseobjectivesaremet.Theconceptof
reasonableassurancerecognizesthat:1)thecostofacontrolshouldnot
exceedthebenefitslikelytobederived,and2)thevaluationofcostand
benefitrequiresestimatesandjudgmentsbymanagement.Thecity’s
internalcontrolsaresubjecttoperiodicevaluationbymanagementandthe
FinanceDepartmentstaffofthecity.
BUDGETINGCONTROLS
Inaddition,thecitymaintainsbudgetarycontrols.Theobjectiveofthese
budgetarycontrolsistoassurecompliancewithlegalprovisionsembodiedin
theannualappropriatedbudgetapprovedbythecitycouncil.Activitiesofthe
GeneralFundareincludedintheannualappropriatedbudget.Thelevelof
budgetarycontrol(thatis,thelevelatwhichexpenditurescannotlegally
exceedtheappropriatedamount)isestablishedbydepartmentwithinthe
GeneralFund.Thecitycouncilalsoadoptsafive-yearCapitalImprovement
Programasafinancialplanningdocumentforitscapitalprojectand
enterprisefunds.Asdemonstratedbythestatementsandschedules
includedinthefinancialsectionofthisreport,thecitycontinuestomeetits
responsibilityforsoundfinancialmanagement.
ACKNOWLEDGEMENTS
TheGovernmentFinanceOfficersAssociationoftheUnitedStatesand
Canada(GFOA)awardedaCertificateofAchievementforExcellencein
FinancialReportingtothecityforitsCAFRforthefiscalyearended
December31,2013.Thiswasthefourthyearthatthecityhasachievedthis
prestigiousaward.InordertobeawardedaCertificateofAchievement,the
cityhadtopublishaneasilyreadableandefficientlyorganizedCAFR.This
reportmustsatisfybothaccountingprinciplesgenerallyacceptedinthe
UnitedStatesofAmericaandapplicablelegalrequirements.
AcertificateofAchievementisvalidforaperiodofoneyearonly.Webelieve
thatourcurrentCAFRcontinuestomeettheCertificateofAchievement
Program’srequirementsandwearesubmittingittotheGFOAtodetermine
itseligibilityforanothercertificate.
The2014CAFRmeetsthehighestprofessionalstandardsandwas
preparedinatimelyandcosteffectivemanner.Thepreparationofthisreport
wouldnothavebeenpossiblewithouttheefficientanddedicatedserviceof
theentirestaffofthefinancedepartment,especiallyAssistantFinance
DirectorAngieMcIntire,andthroughthehelpfulguidanceandassistance
fromourauditingfirm,MMKR.Iwishtoexpressmyappreciationtoall
membersofthedepartmentwhoassistedandcontributedtothepreparation
ofthisreport.Creditalsomustbegiventothemayorandcitycouncilfor
theirunfailingsupportformaintainingthehigheststandardsof
professionalisminthemanagementofthecity’sfinances.
Respectfullysubmitted,
WayneW.Oberg,MBA,CPA
FinanceDirector
3
CertificateofAchievement CITYOFMONTICELLO
TheGovernmentFinanceOfficersAssociationoftheUnitedStates
andCanada(GFOA)awardedaCertificateforExcellencein
FinancialReportingtotheCityofMonticello,Minnesotaforits
ComprehensiveAnnualFinancialReportforthefiscalyearended
December31,2013.TheCertificateofAchievementisa
prestigiousnationalawardrecognizingconformancewiththe
higheststandardsforpreparationofstateandlocalgovernment
reports.
InordertobeawardedaCertificateofAchievement,a
governmentalunitmustpublishaneasilyreadableandefficiently
organizedComprehensiveAnnualFinancialReport,whose
contentsconformtoprogramstandards.Suchreportsmustsatisfy
bothgenerallyacceptedaccountingprinciplesandapplicablelegal
requirements.
ACertificateofAchievementisvalidforaperiodofoneyearonly.
WebelieveourcurrentreportcontinuestoconformtoCertificateof
Achievementprogramrequirements,andwearesubmittingitto
theGFOA.
GovernmentFinanceOfficersAssociation
Certificateof
Achievement
forExcellence
inFinancial
Reporting
Presentedto
CityofMonticello
Minnesota
ForitsComprehensiveAnnual
FinancialReport
FortheFiscalYearEnded
December31,2013
ExecutiveDirector/CEO
4
OrganizationChart CITYOFMONTICELLO
Citizensof
Monticello
City Commissions&
Council AdvisoryBoards
City
Administrator
Human Finance Community City Public Community Deputy Fire FiberNet Contracted
Resource Director Development Engineer Works Center City Chief Operation Services
Manager Director Director Director Clerk
Finance Economic Construction Streets Community Elections Fire FiberNet City
Department Development Inspectors Department Center Department Sales Attorney
Data Building Consulting Parks FiberNet Sheriffs
Processing Inspections Engineer Department Office Department
Audit Receptionist Utilities FiberNet Animal
Department Plant Control
Operations
Department Consulting Refuse County
ofMotor Planner Collection Assessor
Vehicles
Liquor
Operations
5
DirectoryofOfficialsCITYOFMONTICELLO
MAYOR&CITYCOUNCIL
Position NameTermExpires
Mayor.......................................................................................ClintHerbst 12/31/2014
Council....................................................................................LloydHilgart 12/31/2014
Council...................................................................................TomPerrault 12/31/2016
Council..................................................................................GlenPosusta 12/31/2016
Council...................................................................................BrianStumpf 12/31/2014
CITYSTAFF
CityAdministrator.......................................................................JeffO’Neill
FinanceDirector....................................................................WayneOberg
CommunityDevelopmentDirector.................................AngelaSchumann
PublicWorksDirector...........................................................WayneOberg
EconomicDevelopmentDirector...............................................JeffO’Neill
HumanResourceManager.....................................................TracyErgen
LiquorStoreManager......................................................RandallJohnsen
DMVManager..................................................................CarolynGranger
UtilitySuperintendent.............................................................MattTheisen
StreetSuperintendent.............................................................TomMoores
ParksSuperintendent.............................................................TomPawelk
CommunityCenterDirector...............................................KathleenBaltos
BuildingOfficial...........................................................RonHackenmueller
FireChief...................................................................................DarylGilles
CommunicationsCoordinator............................................RachelLeonard
PROFESSIONALSERVICES
CityAttorney..........................................................CampbellKnutson,P.A.
CityEngineer.................................................................WSB&Associates
LawEnforcement.......................................WrightCountySherriff’sOffice
FinancialAdvisor.................................................NorthlandSecurities,Inc.
6
FINANCIAL SECTION
Principals Thomas M. Montague, CPA Thomas A. Karnowski, CPA Paul A. Radosevich, CPA William J. Lauer, CPA James H. Eichten, CPA Aaron J. Nielsen, CPA Victoria L. Holinka, CPA
IN
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8
MANAGEMENT’S DISCUSSION &ANALYSIS
Management’sDiscussionandAnalysisCITYOFMONTICELLO
Management’sDiscussionandAnalysis
AsmanagementoftheCityofMonticello,Minnesota(thecity),weoffer
readersofthecity’sbasicfinancialstatementsthisnarrativeoverviewand
analysisofthefinancialactivitiesofthecityforthefiscalyearended
December31,2014.Weencouragereaderstoconsidertheinformation
presentedhereinconjunctionwithadditionalinformationthatwehave
furnishedinourletteroftransmittal,whichcanbefoundonpages 1-3 ofthis
report.
OverviewoftheBasicFinancialStatements
Thediscussionandanalysisareintendedtoserveasanintroductiontothe
city’sbasicfinancialstatements.Thecity’sbasicfinancialstatements
comprisethreecomponents:1)government-widefinancialstatements,2)fund
financialstatements,and3)notestothefinancialstatements.Thisreportalso
containsothersupplementaryinformationinadditiontothebasicfinancial
statementsthemselves.
Government-WideFinancialStatements –Thegovernment-widefinancial
statementsaredesignedtoprovidereaderswithabroadoverviewofthecity’s
finances,inamannersimilartoprivatesectorbusinesses.
TheStatementofNetPositionpresentsinformationonallofthecity’sassets
andliabilities,withthedifferencebetweenthetworeportedasnetposition.
Overtime,increasesordecreasesinnetpositionmayserveasauseful
indicatorofwhetherthefinancialpositionofthecityisimprovingor
deteriorating.
TheStatementofActivitiespresentsinformationshowinghowthecity’snet
positionchangedduringthemostrecentfiscalyear.Allchangesinnetposition
arereportedassoonastheunderlyingeventgivingrisetothechangeoccurs,
regardlessofthetimingofrelatedcashflows.Thus,revenuesandexpenses
arereportedinthisstatementforsomeitemsthatwillonlyresultincashflows
infuturefiscalperiods(delinquenttaxesandspecialassessments).
Bothofthegovernment-widefinancialstatementsdistinguishfunctionsofthe
citythatareprincipallysupportedbytaxesandintergovernmentalrevenue
(governmentalactivities)fromotherfunctionsthatareintendedtorecoverall
orasignificantportionoftheircoststhroughuserfeesandcharges(business-
typeactivities).Thegovernmentalactivitiesprovidedbythecityinclude
generalgovernment,publicsafety,publicworks,sanitation,transit,recreation
andculture,andeconomicdevelopment.Business-typeactivitiesinclude
water,sewage,liquor,deputyregistrar,andfiberopticsactivities.
Thegovernment-widefinancialstatementsincludenotonlythecityitself
(knownastheprimarygovernment),butalsotheEconomicDevelopment
Authority(EDA).TheEDAisalegallyseparateentitywhichfunctions,in
essence,asadepartmentofthecity,toprovideredevelopmentassistance
throughtheadministrationofvariousprograms.Therefore,theEDAhasbeen
includedasanintegralpartofthecity’sfinancialstatements.
Thegovernment-widefinancialstatementscanbefoundonpages 19-21 of
thisreport.
FundFinancialStatements –Afundisagroupingofrelatedaccountsthatis
usedtomaintaincontroloverresourcesthathavebeensegregatedforspecific
activitiesorobjectives.Thecity,likeotherstateandlocalgovernments,uses
fundaccountingtoensureanddemonstratecompliancewithfinance-related
legalrequirements.Allofthefundsofthecitycanbedividedintotwo
categories:governmentalfundsandproprietaryfunds.
GovernmentalFunds –Governmentalfundsareusedtoaccountfor
essentiallythesamefunctionsreportedasgovernmentalactivitiesinthe
government-widefinancialstatements.However,unlikethegovernment-wide
financialstatements,governmentalfundfinancialstatementsfocusonnear-
terminflowsandoutflowsofspendableresources,aswellasthebalancesof
COMPONENTSOF
THEANNUALFINANICALREPORT
Management’s
Discussionand
Analysis
Basic
Financial
Statements
Required
Supplementary
Information
Government-wide
Financial
Statements
Fund
FinancialStatements
Notestothe
FinancialStatements
Summary Detail
9
Management’sDiscussionandAnalysisCITYOFMONTICELLO
spendableresourcesavailableattheendofthefiscalyear.Suchinformation
maybeusefulinevaluatingagovernment’snear-termfinancingrequirements.
Becausethefocusofgovernmentalfundsisnarrowerthanthatofthe
government-widefinancialstatements,itisusefultocomparetheinformation
presentedforgovernmentalfundswithsimilarinformationpresentedfor
governmentalactivitiesinthegovernment-widefinancialstatements.Bydoing
so,readersmaybetterunderstandthelong-termimpactofthegovernment’s
near-termfinancingdecisions.BoththegovernmentalfundsBalanceSheet
andStatementofRevenue,Expenditures,andChangesinFundBalances
provideareconciliationtofacilitatethecomparisonbetweengovernmental
fundsandgovernmentalactivities.
Thecitymaintainsseveralindividualgovernmentalfunds.Informationis
presentedseparatelyinthegovernmentalfundsBalanceSheetandinthe
governmentalfundsStatementofRevenue,Expenditures,andChangesin
FundBalancesfortheGeneralFund,CommunityCenterSpecialRevenue
Fund,EDASpecialRevenueFund,DebtServiceFund,ParkandPathway
DedicationCapitalProjectFund,andCapitalProjectsFund,allofwhichare
consideredtobemajorfunds.Datafromtheremaininggovernmentalfunds
arecombinedintoasingle,aggregatedpresentation.Individualfunddatafor
eachofthesenonmajorgovernmentalfundsisprovidedintheformof
combiningstatementselsewhereinthisreport.
ThecityadoptsanannualbudgetforitsGeneralFundandmajorspecial
revenuefunds.Abudgetarycomparisonschedulehasbeenprovidedforthe
GeneralFundandmajorspecialrevenuefundstodemonstratecompliance
withtheadoptedbudgets.
Thegovernmentalfundfinancialstatementscanbefoundonpages 22-25 of
thisreport.
ProprietaryFunds –Thecitymaintainstwodifferenttypesofproprietary
funds.Enterprisefundsareusedtoreportthesamefunctionspresentedas
business-typeactivitiesinthegovernment-widefinancialstatements.Thecity
maintainsfiveenterprisefundswhichareconsideredproprietaryfunds.
Enterprisefundsareusedtoreportthesamefunctionspresentedasbusiness-
typeactivitiesinthegovernment-widefinancialstatements.Thecityuses
enterprisefundstoaccountforitswaterandsewageserviceoperations,liquor
salesoperation,deputyregistrar,andfiberopticsoperation.Internalservice
fundsareanaccountingdeviceusedtoaccumulateandallocatecosts
internallyamongthecity’svariousfunctions.Thecityusesinternalservice
fundstoaccountforinformationtechnology(IT)servicesandcentral
equipmentservices.Becausetheseinternalservicefundactivities
predominantlybenefitgovernmentalratherthanbusiness-typefunctions,they
havebeenincludedwithingovernmentalactivitiesinthegovernment-wide
financialstatements.
Proprietaryfundsprovidethesametypeofinformationasthegovernment-
widefinancialstatements,onlyinmoredetail.Theproprietaryfundfinancial
statementsprovideseparateinformationforeachoftheenterpriseoperations.
Theinternalservicefundsarecombinedintoasingle,aggregatedpresentation
intheproprietaryfundfinancialstatements.Individualfunddatafortheinternal
servicefundsisprovidedintheformofcombiningstatementselsewherein
thisreport.
Theproprietaryfundfinancialstatementscanbefoundonpages 26-31 ofthis
report.
NotestoBasicFinancialStatements –Thenotestobasicfinancial
statementsprovideadditionalinformationthatisessentialtoobtainingafull
understandingofthedataprovidedinthegovernment-wideandfundfinancial
statements.
Thenotestothebasicfinancialstatementscanbefoundpages 32-51 ofthis
report.
OtherInformation –Inadditiontothebasicfinancialstatementsand
accompanyingnotes,thisreportpresentsrequiredsupplementaryinformation
onfundingprogressforthefirereliefassociation,theotherpost-employment
benefits(OPEB)planandbudgetarycomparisoninformation.Combining
statementsfornonmajorandinternalservicefundscanalsobefoundinthe
supplementalsectionofthisreport.
Requiredsupplementaryinformation,combiningandindividualfund
statements,andscheduleswithadditionalinformationcanbefoundstartingon
page 53.
10
Management’sDiscussionandAnalysisCITYOFMONTICELLO
FinancialHighlights
Theassetsofthecityexceededitsliabilitiesatyear-endby$124,738,996(net
position).Ofthisamount,$23,914,473(unrestrictednetposition)maybeused
tomeetthecity’songoingobligationstocitizensandcreditors.
Asofthecloseofthecurrentfiscalyear,thecity’sgovernmentalfunds
reportedcombinedendingfundbalancesof$23,921,338,anincreaseof
$769,137,or3.3percent.Nonspendable,restricted,andassignedusesof
fundbalancetotaled$19,716,607,leavinganunassignedfundbalanceof
$4,204,731.The2014year-endunassignedfundbalanceis$548,268,or15
percent,higherthanthe2013endingbalance
Attheendofthecurrentfiscalyear,unassignedfundbalancefortheGeneral
Fundwas$4,204,731,or65.6percent,oftotalGeneralFundexpendituresfor
2014.Thecitytargets45percentofnextyear’sexpenditurebudgetasthe
optimumfundbalancelevel,providingareserveforcashflowduringthefirst
sixmonthsofeachsubsequentyearuntilpropertytaxreceiptsarereleased
fromthecountytreasurer’sofficeanddistributedtothelocallevelsof
government.Thestateauditorrecommendsthatlocalgovernmentsmaintain
anunrestrictedfundbalanceofapproximately35–50percentofoperating
revenuesornolessthanfivemonthsofoperatingexpendituresforthe
GeneralFund.TheGeneralFund’sheavydependenceonpropertytax
revenuesvalidatesthe45percenttarget.(Source:MinnesotaOfficeofthe
StateAuditor:FundBalanceReportingandGovernmentalFundType
Definitions,basedonGovernmentalAccountingStandardsBoard(GASB)
StatementNo.54,2010–1003RevisedJuly2012).
In2014,government-widecapitalassetsdeclinedby$2,182,583because
depreciationonexistingassetsexceededinvestmentinnewandreplacement
capitalassets.Throughitsgovernmentalactivities,thecityacquiredlandfor
BertramChainofLakesparkdevelopmentatacostof$1,286,557.This
acquisitionwassupplementedbya$396,713stategrant.
Thecity’stotallong-termliabilitiesdecreasedby$25,165,192,or47.2percent,
in2014.Principalpaymentsmadeonoutstandingdebttotaled$5,744,000.
Thecityissued$6,595,000ingeneralobligationsbondsin2014:$6,080,000
foralegalsettlementwithtelecommunicationbondholders;$515,000for
equipmentpurchasesintheCentralEquipmentFund.Thelegalsettlement
eliminatedthe$26,445,000revenuebondliabilityanditscorresponding
accruedinterestpayable;bothwereaccountedforintheFiberOpticsFund.
Thedebtserviceonthejudgmentportionofthenewbondswillbesupported
bypropertytaxes.Thegainonextinguishmentofthisdebtis$20,990,451.
11
Management’sDiscussionandAnalysisCITYOFMONTICELLO
GOVERNMENT-WIDEFINANCIALANALYSIS
NETPOSITION
2014 2013 2014 2013 2014 2013
Currentandotherassets 33,296,323$33,703,304$10,138,195$13,326,965$43,434,518$47,030,269$
Capitalassets 66,301,813 66,933,820 45,355,552 46,906,128 111,657,365 113,839,948
Totalassets 99,598,136 100,637,124 55,493,747 60,233,093 155,091,883 160,870,217
Long-termliabilities 24,734,406 23,575,940 3,346,424 29,670,082 28,080,830 53,246,022
Otherliabilities 1,363,950 1,187,058 908,107 3,602,541 2,272,057 4,789,599
Totalliabilities 26,098,356 24,762,998 4,254,531 33,272,623 30,352,887 58,035,621
Netposition
Netinvestmentin
capitalassets 48,253,810 44,268,757 42,117,264 20,496,832 90,371,074 64,765,589
Restricted 10,453,449 13,570,548 ––10,453,449 13,570,548
Unrestricted 14,792,521 18,034,821 9,121,952 6,463,638 23,914,473 24,498,459
Totalnetposition 73,499,780$75,874,126$51,239,216$26,960,470$124,738,996$102,834,596$
GovernmentalActivities Business-TypeActivities Total
Bythefarthelargestportionofthecity’snetposition(72%)reflects
investmentsincapitalassets(e.g.land,buildings,structures,systems,
machinery,equipment,infrastructure,andintangibleassets),netofanyrelated
debtusedtoacquirethoseassetsthatisstilloutstanding.Thecityusesassets
toprovideservicestocitizens;consequently,theseassetsarenotavailablefor
futurespending.Althoughthecity’sinvestmentincapitalassetsisreportednet
ofrelateddebt,itshouldbenotedthatresourcesneededtorepaythisdebt
mustbeprovidedfromothersources,sincecapitalassetsthemselvescannot
beusedtoliquidatetheseliabilities.
Asmallportionofthecity’snetposition(8%)representsresourcesthatare
subjecttoexternalrestrictionsonhowtheycanbeused.Theremaining
unrestrictednetpositionof$23,914,473maybeusedtomeettheongoing
obligationstocitizensandcreditors.Oftheunrestrictednetpositions,
$9,121,952(38%)isattributabletobusiness-typeactivities.
Theunrestrictedgovernmentalactivitiesnetpositiondecreased$3,242,300
(18%),whilebusiness-typeactivitiesunrestrictednetpositionincreased
$2,658,314(41%).Thegovernment-widetotalunrestrictednetposition
decreased$583,986(2%),reflectingrevenuesexceedingconservative
budgetedestimatesandtherapidamortizationofdebt.
The$632,007(1%)decreaseingovernmentalactivitiescapitalassetsis
reflectiveofdepreciationexceedingreinvestment.Business-typecapital
assetsdecreased$1,550,576(3%)formuchsamereason.
Netinvestmentincapitalasset,whichiscapitalassetslessrelateddebt,
soaredasaresultofthelegalsettlementwithtelecommunicationbondholders.
12
Management’sDiscussionandAnalysisCITYOFMONTICELLO
CHANGEINNETPOSITION
2014 2013 2014 2013 2014 2013
Revenues
Programrevenues
Chargesforservices 2,096,398$2,178,816$6,748,031$6,577,342$8,844,429$8,756,158$
Operatinggrantsandcontributions 295,828 293,710 ––295,828 293,710
Capitalgrantsandcontributions 1,774,628 1,079,738 488,628 –2,263,256 1,079,738
Generalrevenues
Propertytaxes 9,219,737 8,927,164 ––9,219,737 8,927,164
Franchisetaxes 357,409 320,640 ––357,409 320,640
Unrestrictedgrantsandaids 27,502 65,228 ––27,502 65,228
Unrestrictedinvestmentearnings 784,347 (189,128)399,757 (117,175)1,184,104 (306,303)
Gain(loss)onsaleofassets –3,885 –––3,885
Other 217,643 489,782 –65,468 217,643 555,250
Totalrevenues 14,773,492 13,169,835 7,636,416 6,525,635 22,409,908 19,695,470
Expenses
Generalgovernment 1,488,243 1,623,727 ––1,488,243 1,623,727
Publicsafety 1,880,193 1,884,981 ––1,880,193 1,884,981
Publicworks 5,223,345 5,163,461 ––5,223,345 5,163,461
Sanitation 517,956 505,995 ––517,956 505,995
Transit 10,000 –––10,000 –
Recreationandculture 2,882,127 2,856,533 ––2,882,127 2,856,533
Economicdevelopment 1,084,620 1,005,813 ––1,084,620 1,005,813
Interestandfiscalcharges 649,854 235,265 ––649,854 235,265
Water ––1,084,882 1,009,600 1,084,882 1,009,600
Sewage ––2,762,357 2,466,660 2,762,357 2,466,660
Liquor ––692,976 689,559 692,976 689,559
Fiberoptics ––2,919,170 5,240,871 2,919,170 5,240,871
Deputyregistrar ––300,236 293,531 300,236 293,531
Totalexpenses 13,736,338 13,275,775 7,759,621 9,700,221 21,495,959 22,975,996
Increaseinnetposition
beforetransfersandspecialitem 1,037,154 (105,940)(123,205)(3,174,586)913,949 (3,280,526)
Transfers (3,411,500)278,500 3,411,500 (278,500)––
Specialitem:gainonextinguishmentofdebt ––20,990,451 –20,990,451 –
Changeinnetposition (2,374,346)172,560 24,278,746 (3,453,086)21,904,400 (3,280,526)
Netposition-beginningofyear 75,874,126 75,701,566 26,960,470 30,413,556 102,834,596 106,115,122
Netposition–endofyear 73,499,780$75,874,126$51,239,216$26,960,470$124,738,996$102,834,596$
GovernmentalActivities Business-TypeActivities Total
13
Management’sDiscussionandAnalysisCITYOFMONTICELLO
Investment
earnings
5%Other
1%
Chargesforservices
15%
Operating
grants&
contributions
2%
Capitalgrants&
contributions
12%Franchisetaxes
2%
Propertytaxes
63%
RevenuesbySource-
GovernmentalActivities
$-
$1
$2
$3
$4
$5
$6
General
government
PublicsafetyPublicworksSanitation Transit Recreation
andculture
Economic
development
Millions
ProgramExpensesandRevenues-
GovernmentalActivities
ProgramExpenses ProgramRevenues
GovernmentalActivities.Themostsignificantrevenuesourcefor
governmentalactivitiesispropertytaxesat63%oftotalrevenues.Property
taxessupporttheGeneralFund,CommunityCenterFundandtheDebt
ServiceFund.Chargesforservicesaccountsfor15%ofrevenues,mostof
whichisgeneratedbytheCommunityCenter.Capitalgrantsandcontributions
includespecialassessmentsandrevenuesfromothersourcesrestrictedto
capitalassetacquisition.Investmentearningsincludebothinterestreceived
andtheincreaseintheinvestmentmarketvalues.Taxincrementsareproperty
taxescollectedintaxincrementfinancingdistrictsandarerestrictedfor
developmentpurposes.
Publicworks(engineering,streets,iceandsnowremoval,shopandgarage,
streetlighting,parkinglots,etc.)expensesarethemostsignificant(38%),
followedbyrecreationandculture(21%),publicsafety(14%),general
government(11%),economicdevelopment(8%).Includedintheseamountsis
depreciationexpense,whichis30%ofthetotalexpensesforgovernmental
activities.
Governmentalrevenuesincreased$1,603,657(12%)inthecurrentyear,with
themostsignificantportionoftheincreaseattributabletoinvestmentearnings.
In2014,thepositivechangeininvestmentmarketvaluescomprised49%of
investmentearnings.In2013,thecityreportednegativeinvestmentearnings
becauseinterestreceivedwasexceededbythedropinmarketvalues.
Governmentalfundinvestmentearningsfor2014totaled$784,347.Property
taxescollectionsincreasedbymorethan5percentwitha3.2percenthigher
taxlevyanddelinquentcollections.Capitalgrantsandcontributionswere
affectedbyassessmentcollectionsandastategrantforlandacquisition.
Governmentalactivitiesexpensesincreased$460,563(3%)inthecurrent
year.Themostsignificantchangesinprogramexpenseswereasfollows:
•Publicworksexpensesincreased$59,884(1%)fromadditional
maintenanceactivities.Publicsafetyexpensesdeclined$4,788(much
lessthan1%)withthedecreaseinlawenforcementmorethanoffsetting
theincreaseinfire&rescue.Recreationandcultureincreased$25,594
(1%).
•Partiallyattributabletoreallocationofexpensesrelatedtoinformation
technologyandinsurance,generalgovernmentexpensesdecreased
$135,484(8%).Transitexpensesincreasedto$10,000.Thetransit
serviceproviderchangedduringtheyearandannualcostsareexpected
toriseto$40,000.
Therewerenotanyotherprogramswithsignificantorunusualchanges.
14
Management’sDiscussionandAnalysisCITYOFMONTICELLO
Chargesfor
services
89%
Capitalgrants&
contributions
6%
Investment
earnings
5%
RevenuesbySource-
Business-TypeActivities
$-
$0.5
$1.0
$1.5
$2.0
$2.5
$3.0
$3.5
WaterUtility SewageUtility Liquor FiberOptics DeputyRegistrar
M
illions
ProgramRevenuesandExpenses-
Business-TypeActivities
Revenues Expenses
Business-typeActivities.Business-typeactivitiesincreasedthecity’snet
positionby$24,278,746,whichis$27,731,832morethanthepriorfiscalyear
decreaseof$3,453,086.
Keyelementsofthechangeareasfollows:
TheFiberOpticsFundrecordedaspecialitemgainonextinguishmentofdebt
for$20,990,451.Thegainreflectstheextinguishmentof$26,445,000in
revenuebondsminuscashfromatransferinandthepaymentofrestricted
cashheldbyatrustee.Thecashforthetransferincamefromthe$6,080,000
judgmentportionofa$6,595,000generalobligationbondissue.
Business-typeactivitiesinvestmentearningsfor2014totaled$399,757.Thisis
a516,932increaseovertheprioryear’snegativeinvestmentearningsof
$117,175.Asnotedearlierinthegovernmentalactivitiessection,swingsin
marketvaluehaveasignificantimpactonnetinvestmentearnings.
Capitalgrantsandcontributionsforwaterandsewertrunkchargesarenow
accountedforineachrespectiveenterprisefund.Capitalcontributionsfor
2014totaled$488,628.
FINANCIALANALYSISOFTHECITY’SFUNDS
Governmentalfunds.Thefocusofthecity’sgovernmentalfundsisto
provideinformationonnear-terminflows,outflows,andbalancesofspendable
resources.Suchinformationisusefulinassessingthecity’sfinancing
requirements.Inparticular,spendablefundbalancesmayserveasauseful
measureofagovernment’snetresourcesavailableforexpenditureattheend
ofthefiscalyear.
AtDecember31,2014,thecity’sgovernmentalfundsreportedtotalending
fundbalancesof$23,921,338,anincreaseof$769,137(3%)whencompared
withtheprioryear.Nearly44%or$10,453,449ofthetotalendingfund
balancesconstitutedrestrictedfundbalances,whichareconsidered
unavailableforappropriationforgeneraloperations.The$1,941,171
nonspendablefundbalanceaccountedfor8%oftotalgovernmentalfund
balancesandiscomprisedoflandheldforresaleandprepaiditems.
Attheendofthefiscalyear,theGeneralFundreportedafundbalanceof
$4,331,058,increasing$416,495(11%)fromtheprioryear.Generalfund
revenueswere$130,657(2%)morethanthepriorfiscalyearand
expendituresdecreasedby$50,782(lessthan1%).Transfersoutincreased
by$201,000to$293,000:a$93,000annualtransfertotheEDAFundanda
15
Management’sDiscussionandAnalysisCITYOFMONTICELLO
one-time$200,000totheCapitalProjectsFundforconstructionofthe
communicationstower.
Generalgovernmentexpendituresincreased$48,747(4%)withmostofthe
increaserelatedtoevenyearelectionyearcosts.Streetmaintenancewas
largelyresponsibleforthe$92,709(5%)declineinpublicworksexpenditures.
Recreationandcultureexpendituresdeclinedby$61,099(7%)becausethe
citynolongerhadtomakeanannual$75,000icearenapayment.Public
safetyexpendituresremainedrelativelyunchangedwithincreasedfire
expendituresoffsetbyareductioninlawenforcement.
ThefundbalanceintheCommunityCenterFundincreased$169,620(63%)to
$440,824.Propertytaxcollectionsincreased$207,069(18%)toreflecta
higherlevyforadebtservicetransferoutandexpenditurereallocation.
Chargesforservicesincreased$30,802(2%)to$1,323,410in2014.The
transferfordebtserviceincreasedfrom$875,000in2013to$1,040,000in
2014.
ThefundbalanceinEconomicDevelopmentAuthority(EDA)Funddecreased
$203,631(3%)to$6,911,674.Therestrictedfundbalanceincluded
$3,428,757inlandheldforresaleand$34,689innotesreceivable.The
restrictedportionofthefundbalanceisattributabletotaxincrementdistricts
andloanprograms.
ThefundbalanceintheDebtServiceFundincreased$1,168,991(43%)to
$3,919,070.Theplannedfundbalanceincreasemarksthecity’sefforttohave
Februarydebtservicepaymentsremovedfromthefundbalancesof
supportingfundsintheyearpriortopayment.Specialassessmentrevenue
increased$472,856(47%)to$1,489,276.Onepropertyowner’spaymentof
deferredassessmentscontributedsignificantlytotheincrease.
TheCapitalProjectsFundprovidestheaccountingforacquisitionofgeneral
governmentcapitalassets.Accordingly,thefundaccumulatesresourcesfrom
varioussourcesandexpendituresmayormaynotoccurinthesameyearof
accumulation.Consequently,thefundbalanceintheCapitalProjectsFund
declined$584,075(17%)to$2,895,619.The$1,787,089nonspendable
portionthefundbalanceislandheldforresale.Thecitytransferred$200,000
fromtheGeneralFundtotheCapitalProjectsFundtofinancecommunication
towerconstruction.
ThefundbalanceintheParkandPathwayDedicationFunddecreased
$235,100to$738,433.Thefundexpended$1,286,557forlandacquisition
relatedtotheBertramChainofLakesdevelopment.Intergovernmental
revenuesincludedastategrantrelatedtolandpurchase.
Proprietaryfunds.Theproprietaryfundsprovidethesametypeof
informationfoundinthegovernment-widefinancialstatements,butinmore
detail.
WaterFundexpensesincreased$75,282(7%)withinstallationofnewand
replacementradioreaddevices.TheWaterFundtransferred$631,560to
DebtServiceFundforimprovementsrelatedtothewatersystem.Thefund’s
netpositiondeclined$319,139(2%)to$14,901,305.Depreciationexpensefor
thefundtotaled$514,710.
SewageFundexpensesincreased$295,697(12%),largelyattributableto
operationalchangesatthewastewatertreatmentplant.TheSewageFund
transferred$1,690,672totheDebtServiceFundforimprovementsrelatedto
thesewagesystem.Thefund’snetpositiondeclined$1,803,148(8%)to
$20,761,130.Depreciationexpenseforthefundtotaled$1,106,532.
TheLiquorFund’snetpositionincreased$8,138(lessthan1%)to$987,433.
Thefund’ssalesincreased$79,813(2%)to$5,165,737.Grossprofitdeclined
$29,263(2%)to$1,289,040.Aggressivesalepromotionstomaintainstore
trafficwhileroadconstructioncommencedcontributedtothedecrease.The
LiquorFundtransferred$600,000totheFiberOpticsFundin2014.Operating
expenseswerelessthanonepercenthigherat$694,567in2014.
TheFiberOpticsFundnetpositionchangeddramaticallyin2014withthe
resolutionofthebondholder’slegalaction.Theextinguishmentofdebt
resultedingainof$20,990,451.Theoperatinglosswithout$312,510inbond
settlementexpensesequaled$736,596.Depreciationforthefundtotaled
$442,930.
TheDeputyRegistrarFundnetpositionincreased$155,825(69%)to
$380,876.Chargesforservicesincreased$41,424(9%)to$497,709and
operatingexpensesincreased$8,571(3%)to$302,709.Depreciationforthe
fundtotaled$3,185.
Otherfactorsofthechangesinincomefromoperationshavepreviouslybeen
discussedinthegovernment-widefinancialanalysisofbusiness-type
activities.
16
Management’sDiscussionandAnalysisCITYOFMONTICELLO
GENERALFUNDBUDGETARYHIGHLIGHTS
GeneralFundrevenuestotaled$7,119,002andexceededbudgetby$359,002
(5%).Licensesandpermitsandotherrevenueswere$105,630(39%)and
$108,859(153%)higherthanbudget,respectively.Licensesandpermitswere
impactedbytheincreaseinbuildingpermits.Otherrevenuesincludean
insurancedividend,whichvariesfromyear-to-yearandisneverbudgeted.
GeneralFundexpenditurestotaled$6,409,507andwere$257,493(4%)less
thanbudget.A$200,000transfertotheCapitalProjectsFundfor
communicationtowerconstructionpushedotherfinancingusespastbudgetby
thesameamount.Infiscalyear2014,twofunctionsexceededbudget(public
safetyandtransit)andonedepartment(fire&rescue)exceededbudget.
Somereportingdivisionswithinadepartmentmayhaveexceededbudgetbut
wereoffsetbypositivevariancesinotherdivisionsinthesamedepartment.
Elevenofthirty-sixreportingdivisionsexceededbudget.
TheGeneralFundyearendfundbalancessince2010areasfollows:
Year Amount
2010 4,981,034$
2011 4,410,637
2012 3,478,507
2013 3,914,563
2014 4,331,058
CAPITALASSETSANDDEBTADMINISTRATION
CAPITALASSETS
2014 2013 2014 2013 2014 2013
Land 13,825,156 11,919,531$1,197,945$1,197,945$15,023,101$13,117,476$
Constructioninprogress 1,742,073 3,492,384 2,507,712 2,407,995 4,249,785 5,900,379
Buildingsandsystems 90,748,030 88,061,229 77,274,052 77,159,690 168,022,082 165,220,919
Machineryandequipment 5,328,537 4,707,040 2,549,969 2,241,362 7,878,506 6,948,402
Less:
Accumulateddepreciation (45,341,983)(41,246,364)(38,174,126)(36,100,864)(83,516,109)(77,347,228)
Nettotal 66,301,813$66,933,820$45,355,552$46,906,128$111,657,365$113,839,948$
GovernmentalActivities Business-TypeActivities Total
Capitalassets.Thecity’sinvestmentincapitalassetsforitsgovernmentaland
business-typeactivitiesatDecember31,2014totaled$111,657,365(netof
accumulateddepreciation).Thisinvestmentincapitalassetsincludedland,
constructioninprogress,structures,systems,machineryandequipment,
intangibleassets,andinfrastructure.
Majorgovernmentalactivitiescapitalassetsacquisitions:$1,286,557forBertram
ChainofLakeslandand$561,491forCentralEquipmentFundequipment,
includingafiretender.Business-typecapitalassetsacquisitionsincludednearly
$400,000forthewastewatertreatmentplantimprovementsand$240,000for
fiberopticsequipment.Thetotaldecreasefromthepriorfiscalyearis
approximately2%;governmentalactivitiesdecreasedlessthan1%and
business-typeactivitiesdecreased3%.
Additionalinformationonthecity’scapitalassetscanbefoundinthenotestothe
financialstatementsonpages41-42.
17
Management’sDiscussionandAnalysisCITYOFMONTICELLO
OUTSTANDINGINDEBTEDNESS
2014 2013 2014 2013 2014 2013
Generalobligationbonds 12,680,653$7,506,653$3,206,347$3,479,347$15,887,000$10,986,000$
Certificateofindebtedness 385,000 445,000 ––385,000 445,000
Specialassessmentbonds 10,010,000 13,010,000 ––10,010,000 13,010,000
Revenuebonds 985,000 1,975,000 –26,445,000 985,000 28,420,000
Total 24,060,653$22,936,653$3,206,347$29,924,347$27,267,000$52,861,000$
Governmental Business-Type
Activities Activities Total
Long-termDebt.Thecity’soutstandinglong-termdebt--includinggeneral
obligationbonds,specialassessmentbonds,revenuebondsandcertificates
ofindebtedness—totaled$27,267,000atDecember31,2014.Business-type
long-termdebtdecreasedsignificantlywiththe$26,445,000extinguishmentof
thetelecommunicationrevenuebonds.Meanwhile,thecityissued$6,080,000
ingeneralobligationbondstofacilitatethesettlementwithrevenue
bondholdersandextinguishthedebt.Thecityalsoissued$515,000ingeneral
obligationbondstopurchaseequipment.Allotherchangesaretheresultof
normalamortization.
Additionalinformationonthecity’slong-termliabilitiescanbefoundinthe
notestothefinancialstatementsonpages42-45 ofthisreport.
ECONOMICFACTORSANDNEXTYEAR’SBUDGETSANDRATES
•TheunemploymentratefortheWrightCounty,Minnesotaareafor
December31,2014was3.8%,whichisabovethestateaverage(3.6%)
andbelowthenationalaverage(5.4%).
•Thestateandlocaleconomyareimproving.Newcommercialand
residentialdevelopmentgrewatasustainablepacein2014.
•Theoccupancyrateofthecity’sbusinessdistricthasremainedconstant
overthelastthreeyearsandnewcommercialconstructionisgrowing.
•Inflationarytrendsintheregioncomparefavorablytonationalindicesand
housingpriceshaverisenthelasttwoyears.
•Thecityexpectsresidentialandcommercialgrowthtoeventuallyreturnto
pre-recessionlevels,accompaniedbytheincreaseinaffordablehousing.
REQUESTSFORINFORMATION
Thisfinancialreportisdesignedtoprovideageneraloverviewofthecity’s
financesforallthoseinterestedingovernmentalfinance.Questions
concerninganyinformationinthereportorrequestsforadditionalinformation
shouldbeaddressedtoCityofMonticello,FinanceDepartment,505Walnut
Street,Suite1,Monticello,MN55362.
18
BASIC STATEMENTS
CITYOFMONTICELLO
StatementofNetPosition
December31,2014
Governmental Business-type
Activities Activities Total
ASSETS
Cashandinvestments 20,148,359$8,329,275$28,477,634$
Receivables:
Currenttaxes 41,828 -41,828
Deliquenttaxes 42,680 -42,680
Currentspecialassessments 924,004 162,921 1,086,925
Deliquentspecialassessments 1,646,163 26,987 1,673,150
Deferredspecialassessments 3,997,633 25,251 4,022,884
Accruedinterest 124,133 -124,133
Accounts,netuncollectiblesallowance 336,223 924,701 1,260,924
Duefromothergovernmentalunits 117 -117
Internalbalances (9,915)9,915 -
Inventories -520,020 520,020
Prepaiditems 154,419 139,125 293,544
Notesreceivable 674,833 -674,833
Landheldforresale 5,215,846 -5,215,846
Capitalassets:
Nondepreciable 15,567,229 3,705,657 19,272,886
Depreciable,net 50,734,584 41,649,895 92,384,479
TOTALASSETS 99,598,136 55,493,747 155,091,883
LIABILITIES
Accountsandcontractspayable 720,295 778,115 1,498,410
Accruedinterestpayable 201,060 12,550 213,610
Otheraccruedliabilities 222,394 1,496 223,890
Duetoothergovernmentalunits 8,137 115,946 124,083
Unearnedrevenue 19,558 -19,558
Escrowdeposits 192,506 -192,506
Long-termliabilities:
Duewithinoneyear 5,174,124 305,431 5,479,555
Dueinmorethanoneyear 19,560,282 3,040,993 22,601,275
TOTALLIABILITIES 26,098,356 4,254,531 30,352,887
NETPOSITION
Netinvestmentincapitalassets 48,253,810 42,117,264 90,371,074
Restrictedfor:
Debtservice 3,919,070 -3,919,070
Economicdevelopment 2,203,698 -2,203,698
Perpetualcare 30,312 -30,312
Taxincrement 4,300,369 -4,300,369
Unrestricted 14,792,521 9,121,952 23,914,473
TOTALNETPOSITION 73,499,780$51,239,216$124,738,996$
Thenotestothefinancialstatementsareanintegralpartofthisstatement.
19
(Thispageleftblankintentionally)
20
CITYOFMONTICELLO
StatementofActivities
YearEndedDecember31,2014
Operating Capital
Chargesfor Grantsand Grantsand Governmental Business-type
Functions/Programs Expenses Services Contributions Contributions Activities Activities Total
Governmentalactivities:
Generalgovernment 1,488,243$180,145$-$-$(1,308,098)$-$(1,308,098)$
Publicsafety 1,880,193 164,616 184,548 -(1,531,029)-(1,531,029)
Publicworks 5,223,345 371,671 111,280 1,404,915 (3,335,479)-(3,335,479)
Sanitation 517,956 48,385 --(469,571)-(469,571)
Transit 10,000 ---(10,000)-(10,000)
Recreationandculture 2,882,127 1,331,581 -369,713 (1,180,833)-(1,180,833)
Economicdevelopment 1,084,620 ---(1,084,620)-(1,084,620)
Interestandfiscalcharges 649,854 ---(649,854)-(649,854)
Totalgovernmentalactivities 13,736,338 2,096,398 295,828 1,774,628 (9,569,484)-(9,569,484)
Business-typeactivities
WaterUtility 1,084,882 1,117,226 -81,291 -113,635 113,635
SewageUtility 2,762,357 2,081,660 -407,337 -(273,360)(273,360)
Liquor 692,976 1,289,369 ---596,393 596,393
FiberOptics 2,919,170 1,761,978 ---(1,157,192)(1,157,192)
DeputyRegistrar 300,236 497,798 ---197,562 197,562
Totalbusiness-typeactivities 7,759,621 6,748,031 -488,628 -(522,962)(522,962)
Totalprimarygovernment 21,495,959$8,844,429$295,828$2,263,256$(9,569,484)(522,962)(10,092,446)
GeneralRevenues:
Propertytaxes 9,219,737 9,219,737
Franchisetaxes 357,409 357,409
Unrestrictedgrantsandcontributions 27,502 27,502
Unrestrictedinvestmentearnings 784,347 399,757 1,184,104
Other 217,643 217,643
Specialitem:gainonextinguishmentofdebt 20,990,451 20,990,451
Transfers (3,411,500)3,411,500 -
Totalgeneralrevenues,specialitems,andtranfers 7,195,138 24,801,708 31,996,846
ChangeinNetPosition (2,374,346)24,278,746 21,904,400
NetPosition-January1 75,874,126 26,960,470 102,834,596
NetPosition-December31 73,499,780$51,239,216$124,738,996$
Net(Expense)RevenueandChangesinNetPositionProgramRevenues
Thenotestothefinancialstatementsareanintegralpartofthisstatement.
21
CITYOFMONTICELLO
BalanceSheet
GovernmentalFunds
December31,2014
Economic Park&Total Total
Community Development Debt Capital Pathway Nonmajor Governmental
General Center Authority Service Projects Dedication Funds Funds
ASSETS
Cashandinvestments 4,639,206$459,215$3,484,428$3,700,941$1,446,699$738,333$4,610,925$19,079,747$
Receivables:
Currenttaxes 33,734 3,360 1,280 3,331 --123 41,828
Delinquenttaxes 28,728 7,265 86 6,601 ---42,680
Currentspecialassessments 1,242 --783,945 138,817 --924,004
Delinquentspecialassessments 320 --1,449,601 196,242 --1,646,163
Deferredspecialassessments ---3,383,684 613,949 --3,997,633
Accounts 45,430 --215,800 --74,993 336,223
Accruedinterest 124,133 ------124,133
Duefromothergovernmentalunits 117 ------117
Notesreceivable --34,689 400,000 --240,144 674,833
Landheldforresale --3,428,757 -1,787,089 --5,215,846
PrepaidItems 126,327 17,925 8,336 ---1,737 154,325
TOTALASSETS 4,999,237$487,765$6,957,576$9,943,903$4,182,796$738,333$4,927,922$32,237,532$
LIABILITIES
Liabilities:
Accountsandcontractspayable 220,264$24,779$35,816$1,002$338,169$-$3,018$623,048$
Otheraccruedliabilities 222,394 ------222,394
Duetoothergovernmentalunits 1,325 6,739 -----8,064
Unearnedrevenue 11,400 8,158 -----19,558
Escrowdeposits 182,506 -10,000 ----192,506
Totalliabilities 637,889 39,676 45,816 1,002 338,169 -3,018 1,065,570
DEFERREDINFLOWSOFRESOURCES
Unavailablerevenue-propertytaxes 28,728 7,265 86 6,601 ---42,680
Unavailablerevenue-specialassessments 1,562 --5,617,230 949,008 --6,567,800
Unavailablerevenue-notesreceivable ---400,000 --240,144 640,144
TotalDeferredInflowsofResources 30,290 7,265 86 6,023,831 949,008 -240,144 7,250,624
FUNDBALANCES
Nonspendable 126,327 17,925 8,336 -1,787,089 -1,737 1,941,414
Restricted --5,398,990 3,919,070 --1,135,389 10,453,449
Assigned -422,899 1,504,348 -1,108,530 738,333 3,547,634 7,321,744
Unassigned 4,204,731 ------4,204,731
Totalfundbalance 4,331,058 440,824 6,911,674 3,919,070 2,895,619 738,333 4,684,760 23,921,338
TOTALLIABILITIES,DEFERREDINFLOWS
OFRESOURCES,ANDFUNDBALANCES 4,999,237$487,765$6,957,576$9,943,903$4,182,796$738,333$4,927,922$32,237,532$
Thenotestothefinancialstatementsareanintegralpartofthisstatement.
22
CITYOFMONTICELLO
ReconciliationoftheGovernmentalFundsBalanceSheet
totheStatementofNetPosition
December31,2014
Totalfundbalances-governmentalfunds 23,921,338$
Amountsreportedforgovernmentalactivitiesinthestatementofnetpositionaredifferentbecause:
Capitalassetsusedingovernmentalactivitiesarenotfinancialresources
and,therefore,arenotreportedinthefunds.
Land 13,825,156$
Constructioninprogress 1,742,073
Buildingsandsystems 90,748,030
Machineryandequipment 4,655,033
Accumulateddepreciation (45,302,379)65,667,913
Long-termliabiltiesthatpertaintogovernmentalfunds,includingbondspayable,arenotdueandpayableinthe
inthecurrentperiodand,therefore,arenotreportedasfundliabilities.Allliabilities,bothcurrentandlong-term,
arereportedintheStatementofNetPosition.
Bondspayable (23,160,653)$
Unamortizedbonddiscounts 184,145
Unamortizedbondpremiums (251,495)
Compensatedabsences (322,842)(23,550,845)
Internalservicefundsareusedbymanagementtochargethecostsofcentralequipmentandinformation
technologyservicestoindividualfunds.Theassetsandliabilitiesofoftheinternalservicefundsareincluded
ingovernmentalactivitiesintheStatementofNetPosition.
Internalservicefundnetpositionincludedinthegovernmentalactivities 703,904$
Lessinternalservicesnetpositionallocatedtotobusiness-typeactivities (9,915)693,989
Netotherpost-employmentbenefitobligationspayableandreportedinthestatementofNetpositiondonotrequire
theuseofcurrentfinancialresourcesandarenotreportdasliabilitiesingovernmentalfundsuntilactuallydue.(283,561)
Someofthecity'spropertytaxes,specialassessments,andnotesreceivablewillbecollectedafteryear-end,butarenot
availablesoonenoughtopayforcurrrentperiodexpendituresand,therefore,arereportedasdeferredinflowsofresources
inthegovernmentalfunds.7,250,624
Interestonlong-termdebtisnotaccruedingovernmentalfunds,butratherisrecognizedasanexpenditurewhendue.
AccruedinterestforgeneralobligationbondsisincludedintheStatementofNetPosition.(199,678)
NETPOSITIONOFGOVERNMENTALACTIVITIES 73,499,780$
Thenotestothefinancialstatementsareanintegralpartofthisstatement.
23
CITYOFMONTICELLO
StatementofRevenues,ExpendituresandChangesinFundBalance
GovernmentalFunds
YearEndedDecember31,2014
Economic Park&Total Total
Community Development Debt Capital Pathway Nonmajor Governmental
General Center Authority Service Projects Dedication Funds Funds
Revenues:
Propertytaxes 5,527,958$1,388,404$-$1,262,235$228,854$-$176$8,407,627$
Taxincrements --826,363 ----826,363
Franchisetaxes 216,500 ---53,933 -86,976 357,409
Specialassessments 22,808 --1,489,276 400,848 --1,912,932
Licensesandpermits 378,810 ------378,810
Intergovernmental 320,691 ---41,962 369,713 -732,366
Chargesforservices 319,477 1,323,410 4,128 ---75,959 1,722,974
Finesandforfeitures 1,900 ------1,900
Investmentearnings 150,754 (19,044)168,282 96,681 86,654 32,870 222,759 738,956
Otherrevenues 180,104 22,993 7,513 200,003 2,500 --413,113
Totalrevenues 7,119,002 2,715,763 1,006,286 3,048,195 814,751 402,583 385,870 15,492,450
Expenditures:
Current
Generalgovernment 1,450,930 ------1,450,930
Publicsafety 1,845,073 ------1,845,073
Publicworks 1,792,870 -----292 1,793,162
Sanitation 517,956 ------517,956
Transit 10,000 ------10,000
Recreationandculture 792,678 1,556,143 ---15,626 22,385 2,386,832
Economicdevelopment --1,084,564 ---56 1,084,620
Capitaloutlay
Publicworks ----934,326 --934,326
Recreationandculture -----1,286,557 -1,286,557
Debtservice
Principal ---5,411,000 ---5,411,000
Interestandfiscalcharges ---658,983 ---658,983
Totalexpenditures 6,409,507 1,556,143 1,084,564 6,069,983 934,326 1,302,183 22,733 17,379,439
Excess(deficiency)ofrevenuesoverexpenditures 709,495 1,159,620 (78,278)(3,021,788)(119,575)(899,600)363,137 (1,886,989)
Otherfinancingsources(uses):
Generalobligationbondsissued ---6,080,000 ---6,080,000
Discountongeneralobligationbondsissued ---(12,374)---(12,374)
Transfersin -50,000 93,000 3,906,885 200,000 664,500 -4,914,385
Transfersout (293,000)(1,040,000)(218,353)(5,783,732)(664,500)-(326,300)(8,325,885)
Totalotherfinancingsources(uses)(293,000)(990,000)(125,353)4,190,779 (464,500)664,500 (326,300)2,656,126
Netchangeinfundbalances 416,495 169,620 (203,631)1,168,991 (584,075)(235,100)36,837 769,137
Fundbalanceatbeginningofyear 3,914,563 271,204 7,115,305 2,750,079 3,479,694 973,433 4,647,923 23,152,201
Fundbalanceatendofyear 4,331,058$440,824$6,911,674$3,919,070$2,895,619$738,333$4,684,760$23,921,338$
Thenotestothefinancialstatementsareanintegralpartofthisstatement.
24
CITYOFMONTICELLO
ReconciliationoftheStatementofRevenues,ExpendituresandChanges
inFundBalancesofGovernmentalFundstotheStatementofActivities
YearEndedDecember31,2014
Netchangeinfundbalances--governmentalfunds 769,137$
AmountsreportedforgovernmentalactivitiesintheStatementofActivitiesaredifferentbecause:
Governmentalfundsreportedcapitaloutlaysasexpenditures.However,inthestatementofactivitiesthecost
ofthoseassetsisallocatedovertheirestimatedusefullivesandreportedasdepreciationexpense.
Thisistheamountbywhichcapitaloutlaysexceededdepreciationinthecurrentperiod.
Capitaloutlays 2,220,883$
Capitalcontributions 681,238
Depreciation (4,067,722)(1,165,601)
Proceedsfromlong-termdebtprovidefinancialresourcestogovernmentalfunds,buttheissuingofdebt
increaseslong-termliabilitiesintheStatementofNetPosition.
Issuanceoflong-termdebt (6,080,000)$
Discountsand(premiums)12,374 (6,067,626)
Repaymentoflong-termdebtprincipalisanexpenditureinthegovernmentalfunds,buttherepaymentreduces
long-termliabilitiesintheStatementofNetPosition.5,411,000
SomeexpensesreportedintheStatementofActivitiesdonotrequiretheuseofcurrentfinancialresources
and,therefore,arenotreportedasexpendituresinthegovernmentalfunds.
Amortizationofbonddiscounts (42,321)$
Amortizationofbondpremiums 35,701
Changeincompensatedabsences (12,263)
ChangeinOPEBobligation (27,957)
Changeaccruedinterestpayable 51,104 4,264$
Deferredinflowsofresourcesarerevenues(i.e.delinquenttaxesandspecialassessments)includedinthechangeinnet
position,butareexcludedfromthechangeinfundbalancesuntiltheyareavailabletoliquidateliabilitiesofthecurrentperiod.(1,445,587)
Internalservicefundsareusedbymanagementtochargethecostsofcertainactivitiestoindividualfunds
Thenetrevenueoftheinternalservicefundsisreportedwithgovernmentalactivities.
Internalservicefundactivityincludedingovernmentalactivities 128,029$
Subtractinternalservicefundactivityallocatedtobusiness-typeactivities (7,962)120,067
Changeinnetpositionofgovernmentalactivities (2,374,346)$
Thenotestothefinancialstatementsareanintegralpartofthisstatement.
25
CITYOFMONTICELLO
StatementofNetPosition
ProprietaryFunds
December31,2014
Governmental
Activities-
Deputy Internal
Water Sewage Liquor FiberOptics Registrar Totals ServiceFunds
ASSETS
Currentassets:
Cashandinvestments 4,377,060$2,982,398$563,779$42,559$363,479$8,329,275$1,068,612$
Receivables:
Currentspecialassessments 162,921 ----162,921 -
Deliquentspecialassessments 26,987 ----26,987 -
Deferredspecialassessments 25,251 ----25,251 -
Accountreceivable 222,800 550,353 -115,901 35,647 924,701 -
Inventory --520,020 --520,020 -
Prepaiditems 10,354 23,777 15,384 86,317 3,293 139,125 94
Totalcurrentassets 4,825,373 3,556,528 1,099,183 244,777 402,419 10,128,280 1,068,706
Noncurrentassets:
Capitalassets:
Land 208,143 984,202 5,600 --1,197,945 -
Buildingsandsystems 19,832,724 41,594,037 840,217 14,943,377 63,697 77,274,052 -
Machineryandequipment 235,515 1,686,529 134,528 479,132 14,265 2,549,969 673,504
Constructioninprogress -2,507,712 ---2,507,712 -
Totalcapitalassets 20,276,382 46,772,480 980,345 15,422,509 77,962 83,529,678 673,504
Lessaccumulateddepreciation (10,126,490)(25,915,965)(715,555)(1,385,918)(30,198)(38,174,126)(39,604)
Totalcapitalassets(net)10,149,892 20,856,515 264,790 14,036,591 47,764 45,355,552 633,900
Totalnoncurrentassets 10,149,892 20,856,515 264,790 14,036,591 47,764 45,355,552 633,900
TOTALASSETS 14,975,265 24,413,043 1,363,973 14,281,368 450,183 55,483,832 1,702,606
(continued)
Business-TypeActivities–EnterpriseFunds
26
CITYOFMONTICELLO
StatementofNetPosition
ProprietaryFunds
December31,2014 (continued)
Governmental
Activities-
Deputy Internal
Water Sewage Liquor FiberOptics Registrar Totals ServiceFunds
LIABILITIES
Currentliabilities:
Accountsandcontractspayable 29,156$401,075$280,376$66,902$606$778,115$97,247$
Accruedinterestpayable -12,550 ---12,550 1,382
Otheraccruedliabilities --1,496 --1,496 -
Duetoothergovernmentalunits 1,958 -50,945 6,063 56,980 115,946 73
Bondspayable-current -276,000 ---276,000 60,000
Compensatedabsencesduewithinoneyear 9,066 -10,781 5,468 4,116 29,431 -
Totalcurrentliabilities 40,180 689,625 343,598 78,433 61,702 1,213,538 158,702
Noncurrentliabilities:
Bondspayable-netcurrentportion -2,930,347 ---2,930,347 840,000
Netdiscounts(premiums)-31,941 ---31,941 -
Compensatedabsencespayable 33,780 -32,942 4,378 7,605 78,705 -
Totalnoncurrentliabilities 33,780 2,962,288 32,942 4,378 7,605 3,040,993 840,000
TOTALLIABILITIES 73,960 3,651,913 376,540 82,811 69,307 4,254,531 998,702
NETPOSITION
Netinvestmentincapitalassets 10,149,892 17,618,227 264,790 14,036,591 47,764 42,117,264 (266,100)
Unrestricted 4,751,413 3,142,903 722,643 161,966 333,112 9,112,037 970,004
TOTALNETPOSITION 14,901,305$20,761,130$987,433$14,198,557$380,876$51,229,301 703,904$
Adjustmenttoreflectthecumulativeinternalbalancefortheneteffectoftheactivity
betweentheinternalservicefundsandtheenterprisefundsovertime 9,915
Netpositionofbusiness-typeactivities(page19)51,239,216$
Thenotestothefinancialstatementsareanintegralpartofthisstatement.
Business-TypeActivities–EnterpriseFunds
27
(Thispageleftblankintentionally)
28
CITYOFMONTICELLO
StatementofRevenues,Expenses,andChangesinNetPosition
ProprietaryFunds
YearEndedDecember31,2014
Governmental
Activities-
Deputy Internal
Water Sewage Liquor FiberOptics Registrar Totals ServiceFunds
Salesandcostofsales:
Netsales 5,165,737$5,165,737$
Costofsales (3,876,697)(3,876,697)
Grossprofit 1,289,040 1,289,040
Operatingrevenues:
Chargesforservices 1,082,982$2,024,669$1,665,051$497,709$5,270,411 364,608$
Other 34,244 56,991 329 96,927 89 188,580 -
Totaloperatingrevenues 1,117,226 2,081,660 329 1,761,978 497,798 5,458,991 364,608
Operatingexpenses:
Personalservices 188,151 242,621 455,648 503,046 254,365 1,643,831 -
Materialsandsupplies 162,217 22,132 19,756 145,304 10,573 359,982 22,803
Otherservicesandcharges 220,928 1,305,444 172,241 608,906 34,586 2,342,105 224,278
Bondsettlementcharges ---312,510 -312,510 -
Contentandaccesscharges ---798,388 -798,388 -
Depreciation 514,710 1,106,532 46,922 442,930 3,185 2,114,279 27,897
Totaloperatingexpenses 1,086,006 2,676,729 694,567 2,811,084 302,709 7,571,095 274,978
Operatingincome(loss)31,220 (595,069)594,802 (1,049,106)195,089 (823,064)89,630
Nonoperatingrevenues(expenses)
Investmentearnings 199,910 161,997 13,381 13,733 10,736 399,757 45,391
Interestexpense -(86,741)-(16,297)-(103,038)(6,992)
Lossonsaleofcapitalassets ---(93,450)-(93,450)-
TotalNonoperatingrevenes(expenses)199,910 75,256 13,381 (96,014)10,736 203,269 38,399
Income(loss)beforetransfers,capital
contributionsandspecialitem 231,130 (519,813)608,183 (1,145,120)205,825 (619,795)128,029
Capitalcontributions 81,291 407,337 ---488,628 -
Transfersin ---6,383,732 -6,383,732 -
Transfersout (631,560)(1,690,672)(600,000)-(50,000)(2,972,232)-
Specialitem:gainonextinguishmentofdebt ---20,990,451 -20,990,451 -
Changeinnetposition (319,139)(1,803,148)8,183 26,229,063 155,825 24,270,784 128,029
Netpositionatbeginningofyear 15,220,444 22,564,278 979,250 (12,030,506)225,051 575,875
Netpositionatendofyear 14,901,305$20,761,130$987,433$14,198,557$380,876$703,904$
Adjustmenttoreflecttheconsolidationofinternalservicefundrelatedtoenterprisefunds 7,962
Changeinnetpositionofbusiness-typeactivities(page21)24,278,746$
Thenotestothefinancialstatementsareanintegralpartofthisstatement.
Business-TypeActivities–EnterpriseFunds
29
CITYOFMONTICELLO
StatementofCashFlows
ProprietaryFunds
YearEndedDecember31,2014
Governmental
Activities-
Deputy Internal
Water Sewage Liquor FiberOptics Registrar Totals ServiceFunds
Cashflowsfromoperatingactivities:
Cashreceivedfromcustomersandusers 1,091,781$2,070,208$5,166,066$1,780,576$494,291$10,602,922$-$
Cashfrominterfundservicesprovided ------364,608
Cashpaidtosuppliersforgoodsandservices (428,532)(1,170,238)(3,872,929)(2,131,239)(56,232)(7,659,170)(162,422)
Cashpaidtoemployees (191,367)(242,621)(449,507)(500,839)(256,995)(1,641,329)-
Netcashprovided(used)byoperatingactivities 471,882 657,349 843,630 (851,502)181,064 1,302,423 202,186
Cashflowsfromnoncapitalfinancingactivities:
Transfersfromotherfunds ---6,383,732 -6,383,732 -
Transferstootherfunds (631,560)(1,690,672)(600,000)-(50,000)(2,972,232)-
Netcashprovided(used)bynoncapitalfinancingactivities (631,560)(1,690,672)(600,000)6,383,732 (50,000)3,411,500 -
Cashflowsfromcapitalandrelatedfinancingactivities:
Capitalcontributions 81,291 407,337 ---488,628 -
Acquisitionofcapitalassets (11,656)(517,641)-(127,858)-(657,155)(561,491)
Bondholdersettlementpaidtoextinguishlong-termdebt ---(7,867,165)-(7,867,165)-
Proceedsfromissuanceoflong-termdebt ------515,000
Principalpaidonlong-termdebt -(273,000)---(273,000)(60,000)
Interestandfiscalchargespaidonlong-termdebt -(91,963)---(91,963)(6,120)
Netcashprovided(used)bycapitalandrelated
financingactivities 69,635 (475,267)-(7,995,023)-(8,400,655)(112,611)
Cashflowsfrominvestingactivities:
Interestoninvestments 199,910 161,997 13,381 13,733 10,736 399,757 45,391
Netcashprovided(used)byinvestingactivities 199,910 161,997 13,381 13,733 10,736 399,757 45,391
Netincrease(decrease)incashandcashequivalents 109,867 (1,346,593)257,011 (2,449,060)141,800 (3,286,975)134,966
Cashandcashequivalents-January1 4,267,193 4,328,991 306,768 2,491,619 221,679 11,616,250 933,646
Cashandcashequivalents-December31 4,377,060$2,982,398$563,779$42,559$363,479$8,329,275$1,068,612$
Business-TypeActivities–EnterpriseFunds
(continued)
30
CITYOFMONTICELLO
StatementofCashFlows
ProprietaryFunds
YearEndedDecember31,2014 (continued)
Governmental
Activities-
Deputy Internal
Water Sewage Liquor FiberOptics Registrar Totals ServiceFunds
Reconciliationofoperatingincome(loss)tonetcash
provided(used)byoperatingactivities:
Operatingincome(loss)31,220$(595,069)$594,802$(1,049,106)$195,089$(823,064)$89,630$
Adjustmentstoreconcileoperatingincome(loss)to
netcashprovided(used)byoperatingactivities:
Depreciationandamortization 514,710 1,106,532 46,922 442,930 3,185 2,114,279 27,897
Changesinassetsandliabilities:
(Increase)decreaseinaccountsreceivable,net 5,673 (11,452)-18,598 (3,507)9,312 -
(Increase)decreaseinspecialassessmentsreceivable (31,118)----(31,118)-
(Increase)decreaseininventory --(11,102)--(11,102)-
(Increase)decreaseinprepaiditems (1,267)(3,474)(946)(51,541)(107)(57,335)(94)
Increase(decrease)inaccountsandcontractspayable (44,035)160,812 204,927 (213,653)123 108,174 84,680
Increase(decrease)inotherliabilities --312 --312 -
Increase(decrease)induetoothergovernmentalunits (85)-2,886 (937)(11,089)(9,225)73
Increase(decrease)incompensatedabsences (3,216)-5,829 2,207 (2,630)2,190 -
Netcashprovided(used)byoperatingactivities 471,882 657,349 843,630 (851,502)181,064 1,302,423 202,186
Scheduleofnoncashinvesting,capitaland
financingactivities:
Increase(Decrease)infairvalueofinvestments 87,130$31,339$17,070$(3,048)$9,390$141,881$24,097$
Thenotestothefinancialstatementsareanintegralpartofthisstatement.
Business-TypeActivities–EnterpriseFunds
31
NotestotheFinancialStatements
December31,2014 CITYOFMONTICELLO
NOTE1.SUMMARYOFSIGNIFICANTACCOUNTINGPOLICIES
ThebasicfinancialstatementsoftheCityofMonticello,Minnesota(thecity)
havebeenpreparedinconformitywithaccountingprinciples(GAAP)generally
acceptedintheUnitedStatesofAmericaasappliedtogovernmentalunits,as
appliedbytheGovernmentalAccountingStandardsBoard(GASB).GASBis
theacceptedstandard-settingbodyforestablishinggovernmentalaccounting
andfinancialreportingprinciples.Thesignificantaccountingpoliciesofthecity
aredescribedasfollows:
A.Reportingentity
TheCityofMonticellowasincorporated1856andisunderMinnesotaStatutes
withamayor-councilformofgovernment.Thefive-membermayor-councilis
electedonstaggered,even-numberedyears.Councilorsareelectedat-large
tofour-yeartermswhilethemayoriselectedtoatwo-yearterm.The
governingbodyappointsanadministratortoimplementpoliciesandoversee
dailyoperations.
Theaccompanyingfinancialstatementsincludeallfunds,departments,
agencies,boards,commissions,andotherorganizationsthatcomprisethe
city,alongwithanycomponentunits.
Componentunitsarelegallyseparateentitiesforwhichthecity(primary
government)isfinanciallyaccountable,orforwhichtheexclusionofthe
componentunitwouldrenderthefinancialstatementsoftheprimary
governmentmisleading.Thecriteriausedtodetermineiftheprimary
governmentisfinanciallyaccountableforacomponentunitincludeswhether
ornottheprimarygovernmentappointsthevotingmajorityofthepotential
componentunit’sgoverningbody,isabletoimposeitswillonthepotential
componentunit,isinarelationshipoffinancialbenefitorburdenwiththe
potentialcomponentunit,orisfiscallydependeduponbythepotential
componentunit.
TheMonticelloEconomicDevelopmentAuthority(EDA)isfiscallydependent
uponthecity,anditsgoverningbodyconsistsofcitycouncilmembersand
othermembersappointedbythecitycouncil.Thecityisabletoimposeitswill
ontheEDAbysignificantlyinfluencingtheprograms,projects,activities,or
levelofservicesperformedorprovidedbytheEDA.Thereisapotentialforthe
EDAtoprovidespecificfinancialbenefitsto,orimposespecificburdenson,
thecity.Therefore,theEDAisincludedasacomponentunitofthecity.The
EDA’sfinancialdatahasbeenblendedwiththatofthecity(i.e.reportedas
thoughitsfundswerefundsofthecity)andreportedasaspecialrevenue
fund.
Themayorandcouncilareresponsibleforappointingsomemembersofother
organizations.However,thecity’saccountabilityfortheseorganizationsdoes
notextendbeyondmakingappointments.
B.Government-wideandfundfinancialstatements
Thegovernment-widefinancialstatements(i.e.,thestatementofnetposition
andthestatementofactivities)reportinformationonallofthenon-fiduciary
activitiesoftheprimarygovernmentanditscomponentunit.Forthemostpart,
theeffectofinter-fundactivityhasbeenremovedfromthesestatements.
Governmentalactivities,whichnormallyaresupportedbytaxesand
intergovernmentalrevenues,arereportedseparatelyfrombusiness-type
activities,whichrelytoasignificantextentonfeesandchargesforsupport.
Thestatementofactivitiesdemonstratesthedegreetowhichthedirect
expensesofagivenfunctionorsegmentisoffsetbyprogramrevenues.Direct
expensesarethosethatareclearlyidentifiablewithaspecificfunction.
Programrevenuesinclude1)chargestocustomersorapplicantswho
purchase,use,ordirectlybenefitfromgoods,services,orprivilegesprovided
byagivenfunctionorsegmentand2)grantsandcontributionsthatare
restrictedtomeetingtheoperationorcapitalrequirementsofaparticular
functionorsegment.Taxesandotheritemsnotproperlyincludedamong
programrevenuesarereportedinsteadasgeneralrevenues.
Separatefinancialstatementsareprovidedforgovernmentalfundsand
proprietaryfunds.Majorindividualgovernmentalfundsandmajorindividual
enterprisefundsarereportedasseparatecolumnsinthefundfinancial
statements.
Thecityappliesrestrictedresourcesfirstwhenanexpenseisincurredfor
whichbothrestrictedandunrestrictedresourcesareavailable.Depreciation
expenseisincludedinthedirectexpenseofeachfunction.Interestandlong-
termdebtisconsideredanindirectexpenseandisreportedseparatelyonthe
StatementofActivities.
Aggregatedinformationfortheremainingnonmajorfundsarereportedin
singlecolumnsintherespectivefundfinancialstatements.
32
NotestotheFinancialStatements
December31,2014 CITYOFMONTICELLO
C.Measurementfocus,basisofaccounting,andfinancialstatement
presentation
Thegovernment-widefinancialstatementsarereportedusingtheeconomic
resourcesmeasurementfocusandtheaccrualbasisofaccounting,asarethe
proprietaryfundfinancialstatements.Revenuesarerecordedwhenearned
andexpensesarerecordedwhenaliabilityisincurred,regardlessofthetiming
ofrelatedcashflows.Propertytaxesandspecialassessments,iflevied,are
recognizedasrevenuesintheyearforwhichtheyarelevied.Grantsand
similaritemsarerecognizedasrevenueassoonasalleligibilityrequirements
imposedbytheproviderhavebeenmet.
Governmentalfundfinancialstatementsarereportedusingthecurrent
financialresourcesmeasurementfocusandthemodifiedaccrualbasisof
accounting.Revenuesarerecognizedassoonastheyarebothmeasurable
andavailable.Revenuesareconsideredavailablewhentheyarecollectible
withthecurrentperiodorsoonenoughthereaftertopayliabilitiesofthe
currentperiod.Forthispurpose,thecityconsidersrevenuetobeavailableif
theyarecollectedwithin60daysoftheendofthecurrentfiscalperiod.
Expendituresgenerallyarerecordedwhenaliabilityisincurred,asunder
accrualaccounting.However,debtserviceexpenditures,aswellas
expendituresrelatedtoclaimsandjudgments,andcompensatedabsences,
whicharerecognizedasexpenditurestotheextenttheyhavematured.Capital
assetacquisitionsarereportedascapitaloutlayexpendituresinthe
governmentalfunds.Proceedsfromlong-termdebtarereportedarereported
asotherfinancingsources.
Propertytaxes,franchisetaxes,licenses,andinvestmentinterestassociated
withthecurrentfiscalperiodareallconsideredtobesusceptibletoaccrual
andhavebeenrecognizedasrevenuesofthecurrentfiscalperiod.Allother
revenueitemsareconsideredtobemeasurableandavailableonlywhencash
isreceivedbythecity.
Sincegovernmentalfundstatementsarepresentedusingameasurement
focusandbasisofaccountingdifferentfromthatusedinthegovernment-wide
statements’governmentalcolumn,areconciliationispresentedthatbriefly
explainstheadjustmentsnecessarytoreconcileendingnetpositionandthe
changeinnetposition.
Inthefundfinancialstatements,financialtransactionsandaccountsofthecity
areorganizedonthebasisoffunds.Theoperationofeachfundisconsidered
tobeanindependentfiscalandseparateaccountingentity,withaself-
balancingsetofaccountsrecordingcashand/orotherfinancialresources
togetherwithallrelatedliabilitiesandresidualequitiesorbalances,and
changestherein,whicharesegregatedforthepurposeofcarryingonspecific
activitiesorattainingcertainobjectivesinaccordancewithspecialregulations,
restriction,orlimitations.
MajorGovernmentalFunds–Themajorgovernmentalfundsreportedbythe
cityareasfollows:
GeneralFund –TheGeneralFundisusedtoaccountforallfinancial
resourcesexceptthoserequiredtobeaccountedforinanotherfund.
CommunityCenterFund –TheCommunityCenter(specialrevenue)Fund
accountsfortherevenuesandexpendituresrelatedtothecommunity
center.Inadditiontoapropertytaxallocation,thecommunitycenter
generatessignificantrevenuefromchargesformemberships,program
activities,andspacerentals.
EconomicDevelopmentAuthority(EDA)Fund –TheEDA(special
revenue)Fundisusedtoaccountforrevenuesandexpendituresrelated
totheblendedcomponentunit.Taxincrements,generatedmainlyby
economicandredevelopmentdistricts,aretheEDA’sprimaryrevenue
source.
DebtServiceFund –TheDebtServiceFundisusedtoaccountforthe
accumulationofresourcesforandthepaymentoflong-termdebt
principal,interest,andrelatedcosts.
ParksandPathwayDedicationFund –Thiscapitalprojectsfundisused
toaccountforfinancialresourcestobeusedfortheacquisitionor
constructionofparkandpathwayfacilities.
CapitalProjectsFund –TheCapitalProjectsFundisusedtoaccountfor
financialresourcestobeusedfortheacquisitionorconstructionofmajor
capitalfacilities(otherthanthosefinancedbyproprietaryfunds).
MajorProprietaryFunds–Thecityreportsthefollowingmajorproprietary
funds:
WaterFund –TheWater(enterprise)Fundisusedtoaccountforall
activitiesnecessarytoprovidewaterservicestotheresidentsand
businessesofthecity.
SewageFund –TheSewage(enterprise)Fundisusedtoaccountforall
activitiesnecessarytoprovidesewageservicestotheresidentsand
businessesofthecity.
33
NotestotheFinancialStatements
December31,2014 CITYOFMONTICELLO
LiquorFund –TheLiquor(enterprise)Fundisusedtoaccountforthe
operationsofthecity’sliquorstore.
FiberOpticsFund –TheFiberOptics(enterprise)Fundisusedtoaccount
forallactivitiesnecessarytoprovidefiberopticservicestotheresidents
andbusinessesofthecity.
DeputyRegistrarFund –TheDeputyRegistrar(enterprise)Fundisused
toaccountfortheoperationofcity’sdepartmentofmotorvehicles.
Additionally,thecityreportsthefollowingfundtype:
InternalServiceFunds –Thesefundsaccountforthecity’scentral
informationtechnologyandcentralequipmentservices.Internalservice
fundsoperateinamannersimilartoenterprisefunds;however,they
provideservicesprimarilytootherdepartmentswithinthecity.
Asageneralrule,theeffectofinter-fundactivityhasbeeneliminatedfromthe
government-widefinancialstatements.Exceptionstothisgeneralruleare
chargesbetweenthecity’senterprisefundsandvariousotherfunctionsofthe
city.Eliminationofthesechargeswoulddistortthedirectcostsandprogram
revenuesofthevariousfunctionsconcerned.
Amountsreportedasprogramrevenuesinclude1)chargestocustomersor
applicantsforgoods,services,orprivilegesprovided,2)operatinggrantsand
contributions,and3)capitalgrantsandcontributions,includingspecial
assessments.Internallydedicatedresourcesarereportedasgeneral
revenuesratherthanasprogramrevenues.Likewise,generalrevenues
includealltaxesthecityhastheauthoritytoimpose.
Proprietaryfundsdistinguishoperatingrevenuesandexpensesfromnon-
operatingitems.Operatingrevenuesandexpensesgenerallyresultfrom
providingservicesandproducinganddeliveringgoodsinconnectionwitha
proprietaryfund’sprincipalongoingoperations.Theprincipaloperating
revenuesofthecity’senterpriseandinternalservicefundsarechargesto
customersforsalesandservices.Operatingexpensesforenterpriseand
internalservicefundsincludecostofsalesandservices,administrative
expenses,anddepreciationoncapitalassets.Allrevenueandexpensesnot
meetingthisdefinitionarereportedasnon-operatingrevenuesandexpenses.
Aggregatedinformationfortheinternalservicefundsisreportedinasingle
columnintheproprietaryfundfinancialstatements.Becausetheprincipaluser
oftheinternalservicesistheCity’sgovernmentalactivities,thefinancial
statementsoftheinternalservicefundsareconsolidatedintothe
governmentalcolumnwhenpresentedinthegovernment-widefinancial
statements.Thecostoftheseservicesisreportedintheappropriatefunctional
activity.
D.CashandInvestments
Cashandinvestmentsincludebalancesfromallfundsthatarecombinedand
investedtotheextentavailableinsavingsaccounts,certificatesofdeposit,
U.S.governmentobligations,andothersecuritiesauthorizedbystatestatutes.
Earningsfrominvestmentsareallocatedtotherespectivefundsonthebasis
ofapplicableparticipationbyeachfund.Investmentsaregenerallystatedat
fairvalue,exceptforinvestmentsin2a7-likeexternalinvestmentpools,which
arestatedatamortizedcost.Short-termhighlyliquiddebtinstruments
(includingcommercialpaper,banker’sacceptances,andU.S.treasuryand
agencyobligations)purchasedwitharemainingmaturityofoneyearorless
arereportedatamortizedcost.InvestmentincomeisaccruedattheBalance
Sheetdate.
E.Receivables
Utilityandmiscellaneousaccountsreceivablearereportedatgross.Sincethe
cityisgenerallyabletocertifydelinquentamountstothecountyforcollection
asspecialassessments,noallowanceforuncollectibleaccountshasbeen
providedoncurrentreceivables.
Thecityutilizesanallowanceforuncollectibleaccountstovalueitsreceivables
onlyintheFiberOpticsProprietaryFund.Account(trade)receivablesare
carriedatoriginalbillingamountlessanestimatemadefordoubtful
receivablesbasedonareviewofalloutstandingamountsonaregularbasis.
Managementdeterminestheallowancefordoubtfulaccountsbyidentifying
troubledaccountsandbyusinghistoricalexperienceappliedtoanagingof
accounts.Withapprovalcouncil,tradereceivablesarewrittenoffwhen
deemeduncollectible.Recoveriesoftradereceivablespreviouslywrittenoff
arerecordedwhenreceived.
Areceivableisconsideredpastdueifanyportionofthereceivablebalanceis
outstandingformorethan30days.Interestischargedonreceivablesthatare
outstandingformorethan30days.Accrualofinterestisnotsuspendeduntila
receivableisdeterminedtobeuncollectible.Provisionsforbaddebtswould
beinsignificantandnonehasbeenmadefor2014.
Interestreceivableisrecordedasrevenueintheyeartheinterestisearned
andisavailabletopayliabilitiesofthecurrentperiod.Theinterestreceivable
34
NotestotheFinancialStatements
December31,2014 CITYOFMONTICELLO
balanceisreportedasoneamountintheGeneralFundwhileallotherfunds
receiveinterestrevenuedistributionsincash.
F.NotesReceivable
Notesreceivableconsistprimarilyofloansmadebythecitytoarea
businessesfordevelopmentorredevelopmentpurposes.Thetermsand
interestratesoftheindividualloansvary.Somenotesreceivableareoffsetby
deferredinflowsofresourcesinthegovernmentalfunds.
Thecityhasonenotereceivabletotaling$600,000withanotherlocal
government.Thisnotehasaninterestrateof3.95percentandwillmatureat
variousdatesthroughJanuary2016.Thisnotereceivableisoffsetbydeferred
inflowsofresources.
G.PropertyTaxes
Propertytaxleviesaresetbythecitycouncileachyear,andarecertifiedto
WrightCountyforcollectioninthefollowingyear.InMinnesota,countiesactas
collectionagentsforallpropertytaxes.
WrightCountyspreadsallleviesovertaxableproperty.Suchtaxesbecomea
lienonJanuary1andarerecordedasreceivablesbythecityonthatdate.
PropertytaxesmaybepaidbytaxpayersintwoequalinstallmentsonMay15
andOctober15.WrightCountyprovidestaxsettlementstocitiesandother
taxingdistrictsseveraltimesthroughouttheyear.Taxeswhichremainunpaid
atDecember31areclassifiedasdelinquenttaxesreceivableandareoffsetby
deferredinflowsofresourcesinthegovernmentalfundsfinancialstatements.
Withinthegovernmentalfundfinancialstatements,thecityrecognizes
propertytaxrevenuewhenitbecomesbothmeasurableandavailableto
financeexpendituresofthecurrentperiod.Theportionofdelinquenttaxesnot
collectedbythecityinJanuaryisfullyoffsetbydeferredinflowsofresources
becauseitisnotavailabletofinancecurrentexpenditures.Deferredinflowsof
resourcesingovernmentalactivitiesaresusceptibletofullaccrualonthe
government-widefinancialstatements.
H.SpecialAssessments
Specialassessmentsareleviedagainstthebenefitedpropertiesforthe
assessablecostsofspecialassessmentimprovementprojectsinaccordance
withMinnesotaStatutes.Thecityusuallyadoptsassessmentrollswhen
individualpublicimprovementprojectsarecompleteorsubstantiallycomplete.
Theassessmentsarecollectibleoveratermofyearsgenerallyconsistentwith
thetermofyearsoftherelatedbondissue.
Collectionofannualinstallments(includinginterest)ishandledbythecounty
inthesamemanneraspropertytaxes.Propertyownersareallowedtoprepay
totalfutureinstallmentswithoutinterestorprepaymentpenalties.
Onceaspecialassessmentrollisadopted,theamountattributedtoeach
parcelisalienuponthatpropertyuntilfullpaymentismadeortheamountis
determinedtobeexcessivebythecitycouncilorcourtaction.Ifspecial
assessmentsareallowedtogodelinquent,thepropertyissubjecttotax
forfeitedsaleandthefirstproceedsofthatsale(aftercosts,penalties,and
expensesofsale)areremittedtothecityinpaymentofdelinquentspecial
assessments.Generally,thecitywillcollectthefullamountofitsspecial
assessmentsnotadjustedbycitycouncilorcourtaction.Pursuanttostate
statutes,apropertyshallbesubjecttotaxforfeitsaleafterthreeyearsof
delinquencyexceptforhomesteaded,agriculturalorseasonalrecreational
property,whichissubjecttosaleafterfiveyears.
Theseassessmentsarerecordedasdelinquent(levied,butunremitted)and
deferred(certified,butnotyetlevied)specialassessmentsreceivable,andare
offsetbydeferredinflowsofresourcesinthegovernmentalfundfinancial
statements.
UnremittedspecialassessmentamountscollectedbyWrightCountyare
recordedinduefromothergovernmentunits.
I.Inventories
Theinventoriesoftheproprietaryfundsarestatedatcostonthefirst-in,first-
outbasis.Enterprisefundinventoryconsistsofmerchandiseheldforresaleat
theHi-WayLiquorStore.
J.PrepaidItems
Paymentstovendorsforservicesthatwillbenefitfutureaccountingperiods
arerecordedasprepaid.Prepaiditemsareaccountedforusingthe
consumptionmethod.Fundbalanceinanamountequaltotheprepaidbalance
intherelatedfundsisnotavailableforappropriation.
K.LandHeldforResale
Landheldforresaleisrecordedinthegovernmentalfundwhichpurchasedit
atthelowerofcostormarket.Fundbalancesarenonspendableorrestricted
35
NotestotheFinancialStatements
December31,2014 CITYOFMONTICELLO
inanamountequaltotheland’scarryingvalueisreportedinthegovernmental
fundsastheseassetsarenotavailableforappropriation.
L.CapitalAssets
Capitalassets,whichincludeproperty,plant,equipment,andinfrastructure
assets(roads,bridges,sidewalks,andsimilaritems)arereportedinthe
applicablegovernmentalorbusiness-typeactivitiescolumnsinthe
government-widefinancialstatements.Suchassetsarecapitalizedathistorical
cost,orestimatedhistoricalcostforassetswhereactualhistoricalcostisnot
available.Donatedassetsarerecordedascapitalassetsattheirestimatedfair
marketvalueatthedateofdonation.Thecityrestructuredthecapitalization
policywhichhadasinglethresholdlevelof$5,000ormoreforcapitalizing
capitalassets.Therestructuredpolicydivideseachassetintoaclasswitha
relatedthresholdasfollows:
ClassofAsset ThresholdLevel
Land $1
Landimprovements $50,000
Building/buildingimprovements $20,000
Primaryinfrastructureandutility $75,000
Secondaryinfrastructure $25,000
Equipment $10,000
Softwareandnon-tangible $10,000
Thecostofnormalmaintenanceandrepairsthatdoesnotaddtothevalueof
theassetormateriallyextendassetlivesisnotcapitalized.Thecityhas
electedtofullycapitalizetheinfrastructurecapitalassetsofitsgovernmental
activitiesregardlessoftheiracquisitiondateoramount.
Capitalassetsarerecordedinthegovernment-wideandproprietaryfund
financialstatements,butarenotreportedinthegovernmentalfundsfinancial
statements.Interestincurredduringtheconstructionphaseofcapitalassets
forbusiness-typeactivitiesisincludedaspartofthecapitalizedvalueofthe
assetsconstructed.
Capitalassetsaredepreciatedusingthestraight-linemethodovertheir
estimatedusefullives.Sincesurplusassetsaregenerallysoldforan
immaterialamountwhendeclaredasnolongerneededforcitypurposes,no
salvagevalueistakenintoconsiderationfordepreciationpurposes.Useful
livesvaryfrom10to40yearsforinfrastructure;5to20yearsforvehicles,
machinery,andfurnitureandequipment;12to40yearsforbuildings;and10
to20yearsforimprovementsotherthanbuildings.Capitalassetsnotbeing
depreciatedincludelandandconstructioninprogress.
M.DeferredInflowsofResources
Inadditiontoliabilities,statementsoffinancialpositionorbalancesheetswill
sometimesreportaseparatesectionfordeferredinflowsofresources.This
separatefinancialstatementelementrepresentsanacquisitionofnetposition
thatappliestofutureperiodsandsowillnotberecognizedasaninflowof
resources(revenue)untilthattime.Thecityhasonlyonetypeofitem,which
arisesunderamodifiedaccrualbasisofaccounting,whichqualifiesfor
reportinginthiscategory.Accordingly,theitem,unavailablerevenue,is
reportedonlyinthegovernmentalfundsBalanceSheet.Thegovernmental
fundsreportunavailablerevenuefromthreesources:propertytaxes,special
assessments,andnotesreceivablesnotcollectedwithin60daysofyear-end.
Theseamountsaredeferredandrecognizedasaninflowofresourcesinthe
periodtheamountsbecomeavailable.
N.Long-TermLiabilities
Inthegovernment-wideandproprietaryfundfinancialstatements,long-term
debtandotherlong-termobligationsarereportedasliabilities.Bondpremiums
anddiscounts,ifmaterial,aredeferredandamortizedoverthelifeofthe
bondsusingthestraight-linemethod.
Inthefundfinancialstatements,governmentalfundtypesrecognizebond
premiumsanddiscountsduringthecurrentperiod.Thefaceamountofdebt
issuedisreportedasotherfinancingsources.Premiumsreceivedondebt
issuancesarereportedasotherfinancingsourceswhilediscountsondebt
issuancesarereportedasotherfinancinguses.Issuancecosts,whetherornot
withheldfromtheactualdebtproceedsreceived,arereportedasdebtservice
expenditures.
O.CompensatedAbsencesPayable
Cityemployeesearnvacationdaysbaseduponthenumberofcompleted
yearsofservice.Thecitycompensatesemployeesforunusedvacationupon
terminationofemployment.Employeesareentitledtopaidsickleaveat
variousratesforeachmonthoffull-timeservice.Full-timeemployeeswho
resignorleavecityemploymentvoluntarilyandingoodstanding,aftergiving
36
NotestotheFinancialStatements
December31,2014 CITYOFMONTICELLO
propernotice,shallbecompensatedforupto50daysofunusedsickleave
underthefollowingguidelines:
Forunionemployees,one-fourthoftheunusedsickleavetimesthehourlyrate
atthetimeofgivingnoticeispaid.Afterfiveyearsofnon-unionemployment,
one-fourthoftheunusedsickleavetimesthehourlyrateatthetimeofgiving
noticeispaid.
After10yearsofemployment,allemployeesaccrueone-halfoftheunused
sickleave,timesthehourlyrateatthetimeofgivingnotice.
Allcompensatedabsencesareaccruedwhenincurredinthegovernment-wide
andproprietaryfundfinancialstatements.Aliabilityfortheseamountsis
reportedingovernmentalfundsonlyiftheyhavematured,forexample,asa
resultofemployeeresignationsandretirements.
P.Budget
BudgetsfortheGeneralFundandmajorspecialrevenuefundsareadopted
onabasisconsistentwithaccountingprinciplesgenerallyacceptedinthe
UnitedStatesofAmerica.Reportedbudgetamountsareasoriginallyadopted
orasamendedbycitycouncil-approvedsupplementalappropriationsand
budgettransfers.Nosupplementalbudgetamendmentswereadoptedduring
theyear.Budgetappropriationslapseatyear-end.Thelegallevelofbudgetary
controlisatthedepartmentlevelintheGeneralFundandatthefundlevelin
themajorspecialrevenuefunds.
Q.StatementofCashFlows
ForpurposesoftheStatementofCashFlows,thecityconsidersallhighly
liquiddebtinstrumentswithanoriginalmaturityfromthetimeofpurchaseby
thecityofthreemonthsorlesstobecashequivalents.Theproprietaryfund’s
equityinthegovernment-widecashandinvestmentmanagementpoolis
consideredtobecashequivalent.
R.NetPosition
Inthegovernment-wideandproprietaryfundfinancialstatements,netposition
representsthedifferencebetweenassetsanddeferredoutflowsofresources
(ifany),liabilities,anddeferredinflowsofresources.Netpositionisdisplayed
inthreecomponents:
•NetInvestmentinCapitalAssets –Consistsofcapitalassets,net
ofaccumulateddepreciation,reducedbyanyoutstandingdebt
attributabletoacquirecapitalassets.
•RestrictedNetPosition –Consistsofnetpositionrestrictedwhen
therearelimitationsimposedontheirusethroughexternal
restrictionsimposedbycreditors,grantors,orlawsorregulationsof
othergovernments.
•UnrestrictedNetPosition –Allothernetpositionthatdoesnotmeet
thedefinitionof“restricted”or“netinvestmentincapitalassets.”
S.FundBalanceClassifications
Inthefundfinancialstatements,governmentalfundsreportfundbalancein
classificationsthatdiscloseconstraintsforwhichamountsinthosefundscan
bespent.Theseclassificationsareasfollows:
•Nonspendable –Consistsofamountsthatarenotinspendable
form,suchasprepaiditems,inventory,andotherlong-termassets.
•Restricted –Consistsofamountsrelatedtoexternallyimposed
constraintsestablishedbycreditors,grantors,orcontributors;or
constraintsimposedbystatestatutoryprovisions.
•Committed –Consistsofinternallyimposedconstraintsthatare
establishedbycitycouncilresolution.Thosecommittedamounts
cannotbeusedforanyotherpurposeunlesstheCityCouncil
removesorchangesthespecifiedusebytakingthesametypeof
actionitemployedtopreviouslycommitthoseamounts.
•Assigned –Consistsofinternallyimposedconstraints.These
constraintsconsistofamountsintendedtobeusedbythecityfor
specificpurposesbutdonotmeetthecriteriatobeclassifiedas
restrictedorcommitted.Ingovernmentalfunds,assignedamounts
representintendedusesestablishedbythegoverningbodyitselfor
byanofficialtowhichthegoverningbodydelegatestheauthority.
Pursuanttocitycouncilresolution,thecouncil,cityadministrator,or
financedirectorareauthorizedtoestablishassignmentsoffund
balance.
•Unassigned –TheresidualclassificationfortheGeneralFundwhich
alsoreflectsnegativeresidualamountsinotherfunds.
37
NotestotheFinancialStatements
December31,2014 CITYOFMONTICELLO
Whenbothrestrictedandunrestrictedresourcesareavailableforuse,itisthe
city’spolicytofirstuserestrictedresources,thenuseunrestrictedresources
astheyareneeded.
Whencommitted,assigned,orunassignedresourcesareavailableforuse,it
isthecity’spolicytouseresourcesinthefollowingorder:1)committed,2)
assigned,and3)unassigned.
T.UseofEstimates
Thepreparationoffinancialstatementsinconformitywithaccounting
principlesgenerallyacceptedintheUnitedStatesofAmericarequires
managementtomakeestimatesandassumptionsthataffectthereported
amountsofassetsandliabilitiesanddisclosureofcontingentassetsand
liabilitiesatthedateofthefinancialstatementsandthereportedamountsof
revenuesandexpenses/expendituresduringthereportingperiod.Actual
resultscoulddifferfromthoseestimates.
U.Budget
ExpendituresexceededbudgetedamountsintheEDASpecialRevenueFund
by$641,960.ThetaxincrementportionoftheEDAFundfunctionslikea
capitalprojectsfundwithexpendituresbasedonthelifecycleofthetax
incrementdistrict.
V.FutureChangeinAccountingStandards
GASBStatementNo.68replacestherequirementsofGASBStatementNo.
27,AccountingforPensionsbyStateandLocalGovernmentalEmployers,and
StatementNo.50,PensionDisclosures,astheyrelatetogovernmentsthat
providepensionsthroughpensionplansadministeredastrustsorsimilar
arrangementsthatmeetcertaincriteria.GASBStatementNo.68requires
governmentsprovidingdefinedbenefitpensionstorecognizetheirlong-term
obligationforpensionbenefitsasaliabilityforthefirsttime,andtomore
comprehensivelyandcomparablymeasuretheannualcostsofpension
benefits.ThisstatementwillbeeffectiveforfiscalyearsbeginningafterJune
15,2014.Thecityhasnotyetdeterminedthefinancialimpactofadoptingthis
newstandard.
NOTE2.CASH,CASHEQUIVALENTS,ANDINVESTMENTS
A.ComponentsofCashandInvestments
Cashandinvestmentsatyear-endconsistofthefollowing:
Deposits 8,568,608$
Investments 19,898,832
Cashonhand 10,194
Totalcashandinvestments–StatementofNetPosition 28,477,634$
CashandinvestmentsarereflectedontheStatementofNetPositionas
follows:
Cashandinvestments–StatementofNetPosition 28,477,634$
B.Deposits
InaccordancewithapplicableMinnesotaStatutes,thecitymaintainsdeposits
atdepositorybanksauthorizedbythecitycouncil,includingcheckingaccounts
andnon-negotiablecertificatesofdeposit.
Thefollowingisconsideredthemostsignificantriskassociatedwithdeposits.
CustodialCreditRisk –Inthecaseofdeposits,thisistheriskthatinthe
eventofabankfailure,thecity’sdepositsmaybelost.
MinnesotaStatutesrequirethatalldepositsbeprotectedbyfederal
depositinsurance,corporatesuretybond,orcollateral.Themarketvalue
ofcollateralpledgedmustequal110percentofthedepositsnotcovered
byfederaldepositinsuranceorcorporatesuretybonds.Authorized
collateralincludestreasurybills,notes,andbonds;issuesofU.S.
governmentagencies;generalobligationsrated“A”orbetter;revenue
obligationsrated“AA”orbetter;irrevocablestandardlettersofcredit
issuedbytheFederalHomeLoanBank;andcertificatesofdeposit.
MinnesotaStatutesrequirethatsecuritiespledgedascollateralbeheldin
safekeepinginarestrictedaccountattheFederalReserveBankorinan
accountatatrustdepartmentofacommercialbankorotherfinancial
institutionthatisnotownedorcontrolledbythefinancialinstitution
38
NotestotheFinancialStatements
December31,2014 CITYOFMONTICELLO
furnishingthecollateral.Thecity’sinvestmentpolicydoesnotprovide
furtherrequirementsregardingcustodialcreditrisk.
Atyear-end,thecarryingamountofthecity’sdepositswas8,568,608
whilethebalanceonbankrecordswas8,571,262.Alldepositswere
coveredbyfederaldepositoryinsurance,suretybonds,orbycollateral
heldbythecity’sagentinthecity’sname.
C.Investments
No Less More Percentof
InvestmentType RatingAgency Maturity Than1 1to5 5to10 Than10 Total Holdings
U.S.agencysecurities
FederalFarmCreditBank AA+S&P –$–$–$483,812$–$483,812$2.4%
FederalAgricultureMortgage
Corporation AA+S&P ––––739,325 739,325 3.7%
FederalHomeLoanBank AA+S&P –––1,590,432 879,728 2,470,160 12.4%
FederalNationalMortgage
Association AA+S&P ––148,328 –533,095 681,423 3.4%
NegotiablecertificatesofdepositN/R N/A –4,839,458 3,414,082 1,133,624 –9,387,164 47.2%
Localgovernmentsecurities AAA S&P ––––1,135,970 1,135,970 5.7%
Localgovernmentsecurities AA+S&P ––––1,553,046 1,553,046 7.8%
Localgovernmentsecurities BBB S&P –––314,730 –314,730 1.6%
Localgovernmentsecurities Aaa Moody’s ––––1,348,415 1,348,415 6.8%
Localgovernmentsecurities Aa1 Moody’s ––––1,125,150 1,125,150 5.7%
Moneymarketfunds AAAm S&P 607,314 ––––607,314 3.1%
4MFund N/R N/A 52,323 ––––52,323 0.3%
Totalinvestments 659,637$4,839,458$3,562,410$3,522,598$7,314,729$19,898,832$100.0%
N/A–NotApplicable
N/R–NotRated
CreditRisk InterestRisk–MaturityDurationinYears
CustodialCreditRisk –Forinvestments,thisistheriskthatintheevent
ofafailureofthecounterpartytoaninvestmenttransaction(typicallya
broker-dealer)thecitywouldnotbeabletorecoverthevalueofits
investmentsorcollateralsecuritiesthatareinthepossessionofan
outsideparty.Thecity’sinvestmentpolicydoesnotprovideadditional
requirementsbeyondstatestatutes,butthecitytypicallylimitsits
exposurebypurchasinginsuredorregisteredinvestments,orbythe
controlofwhoholdsthesecurities.
CreditRisk –Thisistheriskthatanissuerorothercounterpartytoan
investmentwillnotfulfillitsobligations.MinnesotaStatuteslimitthecity’s
investmentstodirectobligationsorobligationsguaranteedbytheUnited
39
NotestotheFinancialStatements
December31,2014 CITYOFMONTICELLO
Statesoritsagencies;sharesofinvestmentcompaniesregisteredunder
theFederalInvestmentCompanyActof1940thatreceivethehighest
creditrating,areratedinoneofthetwohighestratingcategoriesbya
statisticalratingagency,andalloftheinvestmentshaveafinalmaturityof
13monthsorless;generalobligationsrated“A”orbetter;revenue
obligationsrated“AA”orbetter;generalobligationsoftheMinnesota
HousingFinanceAgencyrated“A”orbetter;bankers’acceptancesof
UnitedStatesbankseligibleforpurchasebytheFederalReserveSystem;
commercialpaperissuedbyUnitedStatescorporationsortheirCanadian
subsidiaries,ratedofthehighestqualitycategorybyatleasttwonationally
recognizedratingagencies,andmaturingin270daysorless;Guaranteed
InvestmentContractsguaranteedbyaUnitedStatescommercialbank,
domesticbranchofaforeignbank,oraUnitedStatesinsurancecompany,
andwithacreditqualityinoneofthetoptwohighestcategories;
repurchaseorreversepurchaseagreementsandsecuritieslending
agreementswithfinancialinstitutionsqualifiedasa“depository”bythe
governmententity,withbanksthataremembersoftheFederalReserve
Systemwithcapitalizationexceeding$10,000,000;thatareaprimary
reportingdealerinU.S.governmentsecuritiestotheFederalReserve
BankofNewYork;orcertainMinnesotasecuritiesbroker-dealers.The
city’sinvestmentpolicydoesnotfurtheraddresscreditrisk.
ConcentrationRisk –Thisistheriskassociatedwithinvestinga
significantportionofthecity’sinvestment(considered5percentormore)
inthesecuritiesofasingleissuer,excludingU.S.guaranteedinvestments
(suchastreasuries),investmentpools,andmutualfunds.Thecity’s
investmentpolicyrequiresthatnomorethan5percentoftheoverall
portfoliomaybeinvestedinthesecuritiesofasingleissuer,exceptforthe
securitiesoftheU.S.governmentandinagenciesoranexternal
investmentpool.Morethan5percentofthecity’sinvestmentsarein
BexarCounty;FederalHomeLoanBank;andKane,Cook,andDuPage
counties.Theseinvestmentsare5.6percent,12.4percent,and5.6
percent,respectively,ofthecity’stotalinvestments.
InterestRateRisk –Thisistheriskofpotentialvariabilityinthefairvalue
offixedrateinvestmentsresultingfromchangesininterestrates(the
longertheperiodforwhichaninterestrateisfixed,thegreatertherisk).
TheCity’sinvestmentpolicydoesnotfurtheraddressthedurationof
investments.
TheMinnesotaMunicipalMoneyMarketFund(4MFund)isacommonlaw
trustorganizedinaccordancewiththeMinnesotaJointPowersAct,which
investsonlyininvestmentinstrumentsallowableunderMinnesotaStatutes.It
isanexternalinvestmentpoolnotregisteredwiththeSecuritiesExchange
Commission(SEC)thatfollowsthesameregulatoryrulesoftheSECunder
rule2a7.Thecity’sinvestmentinthe4MFundismeasuredatthenetasset
valuepershareprovidedbythepool,whichisbasedonanamortizedcost
methodthatapproximatesfairvalue.
NOTE3.CONCENTRATIONOFREVENUES
CargillKitchensolutionsisthelargestcustomerofwaterandsewageservices.
Thecompany’swaterpurchasesaccountfor$67,447,or6percent,ofWater
Fundoperatingrevenue;andthecompany’ssewagechargesaccountfor
$334,725,or16.1percent,ofSewageFundoperatingrevenue.Additionally,
NorthernStatesPowerCompany’s(XcelEnergy)nettaxcapacityforproperty
taxespayablein2014is$9,285,841,or48.8percent,ofthetotalnetcapacity
of$19,021,771.Accordingly,XcelEnergy’sshareofthe$8.15millioncity
propertytaxlevyis$3.98million.ThetaxcapacityonJanuary1,2014,is
basedonmarketvaluescertifiedtothestateonJanuary1,2013.
Consequently,in2013,XcelEnergyupratedenergyproducingassetsatits
Monticellonuclearplant,increasingthecompany’snettaxcapacityto
$14,453,109,or60.5percent,ofthe$23,882,689totaltaxcapacityfortaxes
payablein2015.
NOTE4.CLAIMSANDJUDGMENTS
Thecityparticipatesinanumberoffederalandstateprogramsthatarefullyor
partiallyfundedbygrantsreceivedfromothergovernmentalunits.
Expendituresfinancedbygrantsaresubjecttoauditbytheappropriategrantor
government.Ifexpendituresaredisallowedduetononcompliancewithgrant
programregulations,thecitymayberequiredtoreimbursethegrantor
government.
AsofDecember31,2014,significantamountsofgrantexpenditureshavenot
beenauditedbythegrantingagency,butthecitybelievesthatdisallowed
expendituresdiscoveredinsubsequentaudits,ifany,willnothaveamaterial
effectonanyoftheindividualfundsortheoverallfinancialpositionofthecity.
40
NotestotheFinancialStatements
December31,2014 CITYOFMONTICELLO
NOTE5.CAPITALASSETS
CapitalassetactivitiesfortheyearendDecember31,2014areasfollows:
January1,TransfersandDecember31,
Beginning Completed Ending InternalServiceGovernmentalInternalServiceGovernmental
Balance Additions Deletions Construction Balance FundAssets FundsTotal FundAdditions FundAdditions
Governmentalactivities
Nondepreciablecapitalassets:
Land 11,919,531$1,905,625$–$–$13,825,156$–$13,825,156$–$1,905,625$
Constructioninprogress 3,492,384 674,885 –(2,425,196)1,742,073 –1,742,073 –674,885
Totalcapitalassets,notdepreciated 15,411,915 2,580,510 –(2,425,196)15,567,229 –15,567,229 –2,580,510
Depreciablecapitalassets:
Buildingsandsystems 88,061,229 261,605 –2,425,196 90,748,030 –90,748,030 –261,605
Machineryandequipment 4,707,040 621,497 ––5,328,537 673,504 4,655,033 561,491 60,006
Totalcapitalassets,depreciated 92,768,269 883,102 –2,425,196 96,076,567 673,504 95,403,063 561,491 321,611
Lessaccumulateddepreciationfor:
Buildingsandsystems (37,753,543)(3,875,813)––(41,629,356)–(41,629,356)–(3,875,813)
Machineryandequipment (3,492,821)(219,806)––(3,712,627)(39,604)(3,673,023)(27,897)(191,909)
Totalaccumulateddepreciation (41,246,364)(4,095,619)––(45,341,983)(39,604)(45,302,379)(27,897)(4,067,722)
Netcapitalassets,depreciated 51,521,905 (3,212,517)–2,425,196 50,734,584 633,900 50,100,684 533,594 (3,746,111)
Totalgovernmentalactivities
netcapitalassets 66,933,820$(632,007)$–$–$66,301,813$633,900$65,667,913$533,594$(1,165,601)$
Business-typeactivities
1,197,945$–$–$–$1,197,945$
Constructioninprogress 2,407,995 464,680 –(364,963)2,507,712
Totalcapitalassets,notdepreciated 3,605,940 464,680 –(364,963)3,705,657
Buildingsandsystems 77,159,690 ––114,362 77,274,052
Machineryandequipment 2,241,362 192,475 (134,469)250,601 2,549,969
79,401,052 192,475 (134,469)364,963 79,824,021
Buildingsandsystems (34,455,788)(1,984,238)––(36,440,026)
Machineryandequipment (1,645,076)(130,041)41,017 –(1,734,100)
(36,100,864)(2,114,279)41,017 –(38,174,126)
Netcapitalassets,depreciated 43,300,188 (1,921,804)(93,452)364,963 41,649,895
Totalbusiness-typeactivities
46,906,128$(1,457,124)$(93,452)$–$45,355,552$netcapitalassets
Land
Totalaccumulateddepreciation
Nondepreciablecapitalassets:
Depreciablecapitalassets:
Totalcapitalassets,depreciated
Lessaccumulateddepreciationfor:
41
NotestotheFinancialStatements
December31,2014 CITYOFMONTICELLO
DepreciationfortheyearendedDecember31,2014waschargedto
function/programsasfollows:
Governmentalactivities
Generalgovernment 44,047$
Publicsafety 82,953
Publicworks 3,430,647
Recreationandculture 510,075
CapitalassetsheldbytheCity’sinternalservicefunds–
chargedtothevariousfunctionsbasedonusageofassets 27,897
Totaldepreciationexpense–governmentalactivities 4,095,619$
Business-typeactivities
Water 514,710$
Sewer 1,106,532
Liquor 46,922
FiberNet 442,930
Deputyregistrar 3,185
Totaldepreciationexpense–business-typeactivities 2,114,279$
NOTE6.COMMITMENTS
Duringfiscal2014,thecityawardedcontractsforvariousconstructionand
remodelingprojects.Thecity’scommitmentsforuncompletedworkonthese
contractsatDecember31,2014areapproximatelyasfollows:
SewageFund
Treatmentplantupgrades $383,950
CapitalProjectsFund
Streetconstruction–7th Street $81,000
NOTE7.LONG-TERMLIABILITIES
A.Description
Thecityhasthefollowingtypesoflong-termliabilitiesoutstandingatDecember
31,2014:generalobligation(G.O.)bonds,specialassessmentimprovement
bondswithgovernmentalcommitment,revenuebonds,compensatedabsences,
andnetotherpost-employmentbenefits(OPEB)obligation.
•GeneralObligationBonds –Threeofthefouroutstandinggeneral
obligationbondissuesfinancedstreetimprovementprojectsand
constructionatthewastewatertreatmentplant.Thefourthissue
financedasettlementwithtelecommunicationrevenuebondholders
andcapitalequipmentpurchasesintheCentralEquipmentFund.
•GeneralObligationCertificatesofIndebtedness –Thecityissues
generalobligationcertificatesofindebtednesstoprovidefinancingfor
capitalequipment.Debtserviceiscoveredbygeneralpropertytaxes.
Generalobligationcertificatesofindebtednessaredirectobligations
thatpledgethefullfaithandcreditofthecity.Thesecertificates
generallyareissuedasfive-yearnoteswithfluctuatingdebtservice
paymentseachyear.
•SpecialAssessmentBonds –Thesebondsarepayableprimarily
fromspecialassessmentsleviedonthepropertiesbenefitingfromthe
improvementsfundedbytheseissues.Anydeficienciesinrevenueto
fundtheseissueswillbeprovidedfromgeneralpropertytaxes.
•RevenueBonds –Thesebondswereissuedforimprovementsor
projectsthatdirectlybenefitacityenterpriseactivity.Thedebtissued
willberepaidfromuserfeeswhichbenefitfromtheimprovementsor
projects.
•CompensatedAbsences –Thecityprovidesvacationandsick
leavebenefitstocertaineligibleemployees.Theliabilitywillberepaid
bytheGeneralFund,CommunityCenterSpecialRevenueFund,
WaterFund,LiquorFund,orFiberOpticsFundforwhicheach
employeeisemployed.
•NetOPEBObligation –Thecityprovidespost-employmentbenefits
tocertaineligibleemployeesthroughthecity’sOPEBPlan.The
liabilitywillberepaidbasedonapay-as-you-gofinancing
requirementaswellasanyadditionalamountsdeterminedannually
bythecity.TheliabilitywillberepaidbytheGeneralFund.
42
NotestotheFinancialStatements
December31,2014 CITYOFMONTICELLO
Long-termliabilitiesatyear-endaresummarizedasfollows:
Final
Interest Maturity Balance–
OriginalIssue Rate IssueDate Date EndofYear
Governmentalactivities
Generalobligationbonds
2007Improvementbonds 5,137,903$4.00%12/27/200702/01/2018 2,193,653$
2008BSewerrevenuerefundingbond9,270,000$3.40%04/17/200808/01/2018 3,892,000
2014AGeneralobligationbonds:
judgmentportion 6,080,000$1.00-3.50%12/18/201412/15/2030 6,080,000
equipmentportion 515,000$1.00-3.05%12/18/201412/15/2024 515,000
Othergeneralobligationdebt
2013ACertificateofindebtedness 500,000$0.35–2.10%04/26/201312/01/2020 385,000
Specialassessmentsbonds
2010AGeneralobligationimprovement
andrefundingbonds 3,255,000$0.40–2.70%09/14/201002/01/2021 1,955,000
2011AGeneralobligationrefunding 10,735,000$2.00–3.00%10/19/201102/01/2023 8,055,000
Revenuebonds
2008APublicprojectrevenue
refundingbonds 6,180,000$3.20%02/20/200802/01/2015 985,000
Netpremiums(discounts)onbonds 67,350
Compensatedabsencespayable 322,842
NetOPEBobligation 283,561
Totalgovernmentalactivitylong-termliabilities 24,734,406$
Business-typeactivities
Generalobligationbonds
2007Improvementbonds 907,097$4.00%12/27/200702/01/2018 386,347$
2013BWastewatertreatmentbonds 3,000,000$2.00–3.35%12/05/201312/01/2028 2,820,000
Netpremiums(discounts)onbonds 31,941
Compensatedabsencespayable 108,136
Totalbusiness-typeactivitylong-termliabilities 3,346,424$
B.ChangesinLong-TermLiabilities
December31,December31,DueWithin
2013 Additions Retirements 2014 OneYear
Governmentalactivities
Generalobligationbonds 7,506,653$6,595,000$(1,421,000)$12,680,653$1,468,000$
Certificateofindebtedness 445,000 –(60,000)385,000 60,000
Specialassessmentbonds13,010,000 –(3,000,000)10,010,000 2,575,000
Revenuebonds 1,975,000 –(990,000)985,000 985,000
Add
Premiumsonbonds 287,196 –(35,701)251,495 –
Less
Discountsonbonds (214,092)(12,374)42,321 (184,145)–
Compensatedabsences 310,579 226,409 (214,146)322,842 86,124
NetOPEBobligation 255,604 34,718 (6,761)283,561 –
Total 23,575,940$6,843,753$(5,685,287)$24,734,406$5,174,124$
Business-typeactivities
Generalobligationbonds 3,479,347$–$(273,000)$3,206,347$276,000$
Revenuebonds 26,445,000 –(26,445,000)––
Add
Premiumsonbonds 37,109 –(2,038)35,071 –
Less
Discountsonbonds (397,320)–394,190 (3,130)–
Compensatedabsences 105,946 86,080 (83,890)108,136 29,431
Total 29,670,082$86,080$(26,409,738)$3,346,424$305,431$
43
NotestotheFinancialStatements
December31,2014 CITYOFMONTICELLO
C.MinimumDebtPayments
Minimumannualprincipalandinterestpaymentstomaturityforbondspayable
areasfollows:
YearEnding
December31,Principal Interest Principal Interest Principal Interest Principal Interest Principal Interest
2015 1,468,000$375,788$60,000$5,760$2,575,000$187,649$985,000$15,760$276,000$84,158$
2016 1,926,250 323,380 60,000 5,250 2,590,000 138,000 ––279,750 76,643
2017 1,925,250 264,624 65,000 4,590 985,000 103,267 ––273,750 69,173
2018 1,986,153 203,972 65,000 3,713 995,000 83,674 ––281,847 61,748
2019 415,000 160,609 65,000 2,673 660,000 66,705 ––185,000 56,098
2020-2024 2,220,000 657,401 70,000 1,470 2,205,000 112,227 ––1,000,000 219,480
2025-2029 2,245,000 322,575 ––––––910,000 74,190
2030 495,000 17,325 ––––––––
12,680,653$2,325,674$385,000$23,456$10,010,000$691,522$985,000$15,760$3,206,347$641,490$
Business-TypeActivities
RevenueBonds GeneralObligationBonds
GeneralObligation Special
GovernmentalActivities
GeneralObligationBonds CertificateofIndebtedness AssessmentBonds
D.ConduitDebt
ThecityhasissuedSeniorHousingRefundingRevenueBondstoprovide
financialassistancetoprivatesectorentitiesfortheacquisitionandconstruction
ofseniorhousingfacilitiesdeemedtobeinthepublicinterest.Thebondsare
securedbythepropertyfinancedandarepayablesolelyfrompaymentsreceived
ontheunderlyingmortgageloans.Uponrepaymentofthebonds,ownershipof
theacquiredfacilitiestransferstotheprivatesectorentityservedbythebond
issuance.TheCityisnotobligatedinanymannerforrepaymentofthebonds.
Accordingly,thebondsarenotreportedasliabilitiesintheaccompanying
financialstatements.AsofDecember31,2014,therewasoneseriesofSenior
HousingRefundingRevenueBondsoutstanding.Theoriginalissueamounts
totaled$3,000,000withaninterestrateof4.75percent.Thisbalancehasbeen
reducedthroughannualpaymentsandpartialcallprepayments.Theoutstanding
balanceasofDecember31,2014isundetermined.
E.Pay-As-You-GoTaxIncrementNote
Thecityhasdevelopmentagreementswithprivatedevelopersforapropertyin
thecity’staxincrementdistricts.Aspartoftheagreements,thecityhasagreed
toreimbursethedevelopersforcertaincoststhroughpay-as-you-gotax
incrementnotes.Thenotesprovideforthepaymentofprincipalequaltothe
developers’costs,plusinterestatratesrangingfrom5.0percentto8.5percent
(interestaccrualcommencinguponthedevelopercompletingtheproject).
Paymentsofthenoteswillbemadeatthelesseroftheschedulednote
paymentsortheactualnettaxincrementreceivedduringtheperiodspecified
intheagreement.Thenotewillbecanceledattheendoftheagreementterm,
whetherithasbeenfullyrepaidornot.Theoutstandingprincipalbalanceof
thesenotesasofDecember31,2014is$1,557,889.Thesenotesarenot
includedinthecity’slong-termdebt,becauserepaymentisrequiredonlytothe
extentsufficienttaxincrementsarereceived.Thecity’spositionisthatthisis
anobligationtoassignfutureanduncertainrevenuesourcesand,assuch,is
notactualdebtinsubstance.
F.ArbitrageRebate
InaccordancewiththeprovisionsofSection148(f)oftheInternalRevenue
Codeof1986,asamended,bondsmustsatisfycertainarbitragerebate
requirements.Positivearbitrageistheexcessof(1)theamountearnedon
investmentspurchasedwithbondproceedsover(2)theamountthatsuch
investmentswouldhaveearnedhadsuchinvestmentsbeeninvestedatarate
equaltotheyieldonthebondissue.Inordertocomplywiththearbitrage
rebatesrequirements,positivearbitragemustbepaidtotheU.S.treasuryat
theendofeachfive-yearanniversarydateofthebondissue.AsofDecember
31,2014,therearenoamountsofarbitragerebates.
44
NotestotheFinancialStatements
December31,2014 CITYOFMONTICELLO
G.RevenuePledged
Futurerevenuepledgedforthepaymentoflong-termdebtisasfollows:
2008APublic 2013BG.O.
ProjectRevenue Wastewater
Description RefundingBonds TreatmentBonds
Useofproceeds CommunityCenter SewageFund
Revenuepledged
Type Userfees Utilitycharges
Percentoftotaldebtservice 100%100%
Termofpledge 2008-2015 2013-2028
RemainingprincipalandInterest $1,000,760 $3,430,558
Currentyear
PrincipalandInterestpaid $1,037,360 $254,198
Pledgedrevenuereceived $1,321,099 $2,058,729
NOTE8.DEFINEDBENEFITPENSIONPLANS–STATE-WIDE
A.PlanDescription
Allfull-timeandcertainpart-timeemployeesofthecityarecoveredbydefined
benefitplansadministeredbythePublicEmployees’RetirementAssociation
(PERA)ofMinnesota.PERAadministerstheGeneralEmployees’Retirement
Fund(GERF)andthePublicEmployeesPoliceandFireFund(PEPFF),which
arecost-sharing,multiple-employerretirementplans.Theseplansare
establishedandadministeredinaccordancewithMinnesotaStatutes,Chapters
353and356.
GERFmembersbelongtoeithertheCoordinatedPlanortheBasicPlan.
CoordinatedPlanmembersarecoveredbySocialSecurityandBasicPlan
membersarenot.AllnewmembersmustparticipateintheCoordinatedPlan.All
policeofficers,firefighters,andpeaceofficerswhoqualifyformembershipby
statutearecoveredbythePEPFF.
PERAprovidesretirementbenefitsaswellasdisabilitybenefitstomembers,and
benefitstosurvivorsupondeathofeligiblemembers.Benefitsareestablishedby
statestatutes,andvestafterfiveyearsofcreditedservice.Thedefined
retirementbenefitsarebasedonamember’shighestaveragesalaryforanyfive
successiveyearsofallowableservice,age,andyearsofcreditattermination
ofservice.
TwomethodsareusedtocomputebenefitsforPERA’sCoordinatedandBasic
Planmembers.Theretiringmemberreceivesthehigherofastep-ratebenefit
accrualformula(Method1)oralevelaccrualformula(Method2).Under
Method1,theannuityaccrualrateforaBasicPlanmemberis2.2percentof
averagesalaryforeachofthefirst10yearsofserviceand2.7percentfor
eachremainingyear.TheannuityaccrualrateforaCoordinatedPlanmember
is1.2percentofaveragesalaryforeachofthefirst10yearsofserviceand1.7
percentforeachremainingyear.UnderMethod2,theannuityaccrualrateis
2.7percentofaveragesalaryforBasicPlanmembersand1.7percentfor
CoordinatedPlanmembersforeachyearofservice.ForPEPFFmembers,the
annuityaccrualrateis3.0percentforeachyearofservice.ForallPEPFF
membersandGERFmembershiredpriortoJuly1,1989whoseannuityis
calculatedusingMethod1,afullannuityisavailablewhenageplusyearsof
serviceequal90.Normalretirementageis55forPEPFFmembersand65for
BasicandCoordinatedPlanmembershiredpriortoJuly1,1989.Normal
retirementageistheageforunreducedSocialSecuritybenefitscappedat66
forCoordinatedPlanmembershiredonorafterJuly1,1989.Areduced
retirementannuityisalsoavailabletoeligiblemembersseekingearly
retirement.
Therearedifferenttypesofannuitiesavailabletomembersuponretirement.A
single-lifeannuityisalifetimeannuitythatceasesuponthedeathofthe
retiree—nosurvivorannuityispayable.Therearealsovarioustypesofjoint
andsurvivorannuityoptionsavailablewhichwillbepayableoverjointlives.
Membersmayalsoleavetheircontributionsinthefunduponterminationof
publicserviceinordertoqualifyforadeferredannuityatretirementage.
Refundsofcontributionsareavailableatanytimetomemberswholeave
publicservice,butbeforeretirementbenefitsbegin.
Thebenefitprovisionsstatedinthepreviousparagraphsofthissectionare
currentprovisionsandapplytoactiveplanparticipants.Vested,terminated
employeeswhoareentitledtobenefits,butarenotreceivingthemyetare
boundbytheprovisionsineffectatthetimetheylastterminatedtheirpublic
service.
PERAissuesapubliclyavailablefinancialreportthatincludesfinancial
statementsandrequiredsupplementaryinformationforGERFandPEPFF.
Thatreportmaybeobtainedatmnpera.org;bywritingtoPERAat60Empire
Drive,Suite200,St.Paul,Minnesota55103-2088;orbycalling(651)296–
7460or(800)652–9026.
45
NotestotheFinancialStatements
December31,2014 CITYOFMONTICELLO
B.FundingPolicy
MinnesotaStatutes,Chapter353setstheratesforemployerandemployee
contributions.ThesestatutesareestablishedandamendedbytheState
Legislature.Thecitymakesannualcontributionstothepensionplansequalto
theamountrequiredbystatestatutes.GERFBasicPlanmembersand
CoordinatedPlanmemberswererequiredtocontribute9.1percentand6.25
percent,respectively,oftheirannualcoveredsalaryin2014.PEPFFmembers
wererequiredtocontribute10.2percentoftheirannualcoveredsalaryin2014.
In2014,thecitywasrequiredtocontributethefollowingpercentagesofannual
coveredpayroll:11.78percentforBasicPlanmembers,7.25percentfor
CoordinatedPlanmembers,and15.3percentforPEPFFmembers.
ContributionrateswillincreaseJanuary1,2015intheCoordinatedPlan(6.5%
formembersand7.5%foremployers)andthePEPFF(10.8percentfor
membersand16.2percentforemployers).
Thecity’scontributionsforthepastthreeyearsendingDecember31,2014,
2013,and2012were$241,170,$241,157,and$256,660,respectively.The
City’scontributionswereequaltothecontractuallyrequiredcontributionsfor
eachyearassetbystatestatutes.
NOTE9.CITYOFMONTICELLOFIRERELIEFASSOCIATION
A.PlanDescription
ThecitycontributestotheCityofMonticelloFireReliefAssociation(the
Association),asingleemployerretirementsystemthatactsasacommon
investmentmanagerandadministratorforthecity’sfirefighters.Allactive
membersofthefiredepartmentaremembersoftheAssociation.The
Associationissuesapubliclyavailablefinancialreportthatincludesfinancial
statementsandrequiredsupplementaryinformation.Acopyofthereportmaybe
obtainedatMonticelloCityHall.
UponapprovalbytheBoardofTrustees,lumpsumretirementbenefitsareeither
paidordeferredasfollows:
Eachmemberwhoisatleast50yearsofage,hasretiredfromthefire
department,hasservedatleast10yearsofactiveservicewithsuch
departmentbeforeretirementandhasbeenamemberoftheAssociationin
goodstandingatleast10yearspriortosuchretirement,shallbeentitledto
alumpsumservicepensionintheamountof$2,850foreachyearof
servicebutnotexceedingthemaximumamountperyearofservice
allowedbylawfortheminimumaverageamountofavailablefinancingper
firefighterasprescribedbylaws.Ayearofservicemaybeproratedto
twelvemonthlyslices,ifafullyearofactiveserviceisnotreached.
IfamemberoftheAssociationshallbecomepermanentlyortotally
disabled,theAssociationshallpaythesumof$2,850foreachyearthe
memberwasanactivememberoftheAssociation.Ifamemberwho
receivedadisabilitypensionsubsequentlyrecoversandreturnstoactive
duty,thedisabilitypensionisdeductedfromtheservicepensionas
approvedbytheBoardofTrustees.
AccordingtothebylawsoftheAssociationandpursuanttoMinnesota
Statutes,memberswhoretirewithlessthan20yearsofserviceandhave
reachedtheageof50yearsandhavecompletedatleast10yearsof
activemembershipareentitledtoareducedservicepensionnotto
exceedtheamountcalculatedbymultiplyingthemember’sservice
pensionforthecompletedyearsofservicetimesanapplicable
nonforfeitablepercentage.
Duringthetimeamemberisondeferredvestedpension(notyetreached
age50),theywillearninterestonthedeferredbenefitamountatarate
equaltotheactualtimeweightedtotalrateofreturnasreportedbythe
MinnesotaStateAuditor’sOffice,uptofivepercent,compounded
annually.Adeferredvestedmemberwillnotbeeligiblefordisability
benefits.
B.FundingPolicy
MinnesotaStatutes§69.772setstheminimumcontributionrequirementfor
thecityonanannualbasis,includingstateaidpassedthroughthecity.These
statutesareestablishedandamendedbytheStateLegislature.The
Associationiscomprisedofvolunteers,andnomembercontributionis
required.
C.Contributions
ContributionsbythecityaredeterminedinaccordancewithMinnesota
Statutesasfollows:
•Normalcostfornextyear(increaseinpensionbenefitobligation)
•Plusestimatedexpensesfornextyearand10percentofany
deficits
•Lessanticipatedincomenextyearand10percentofanysurplus
46
NotestotheFinancialStatements
December31,2014 CITYOFMONTICELLO
ThestateofMinnesotacontributesamortizationaid,or2percentfireaid,in
accordancewithstatestatuterequirements.Planmembersarenotrequiredto
contributetothePlan.TheStateLegislaturemayamendcontribution
requirementsofthecityandstate.Municipalcontributionsaredeterminedbythe
preparationofstatemandatedSchedulesIandII,whichmustbecertifiedtothe
citybyAugust1oftheprecedingcalendaryear.
Three-yeartrendinformationforthepensionplanisasfollows:
Three-YearTrendInformation 2014 2013 2012
Statutoryrequiredcontribution(SRC)108,186$109,594$74,221$
Contributionmade
City –––
Stateaid–pass-throughaid 108,186 109,594 74,221
Netpensionobligation –––
Percentagecontributed 100%100%100%
C.FundingStatus
Additionalinformationregardingstatutoryassumptionsandvaluationmethods
areoutlinedbelow:
SRCFormvaluationdate August1,2014
Statutoryassumptions
Administrationexpenseincrease 3.5%
Investmentrateofreturn 5.0%
2014stateaidcontribution 100.0%
Amortizationofpensionbenefitsurplus(deficit)10.0%
Thefundingstatusoftheplanforthelastthreeyearsareasfollows:
Statutory
ValuationDate–StatutoryValue Accrued Funded Funded
December31,ofAssets Liability(SAL)(Unfunded)SAL Ratio
2014 1,053,739$924,403$129,336$114.0%
2013 1,114,949$965,425$149,524$115.5%
2012 1,046,960$1,031,472$15,488$101.5%
TheScheduleofFundingProgressimmediatelyfollowingthenotestobasic
financialstatementspresentsmulti-yeartrendinformationaboutwhetherthe
statutoryvalueofplanassetsisincreasingordecreasingovertimerelativeto
thestatutoryaccruedliabilitiesforbenefits.
NOTE10.OTHERPOST-EMPLOYMENTBENEFITS(OPEB)PLAN
A.PlanDescription
Thecityprovidespost-employmentinsurancebenefitstocertaineligible
employeesthroughthecity’sOPEBPlan,asingle-employerdefinedbenefit
planadministeredbythecity.Allpost-employmentbenefitsarebasedon
contractualagreementswithemployeegroups.TheRetireeHealthPlandoes
notissueapubliclyavailablefinancialreport.Thesecontractualagreements
donotincludeanyspecificcontributionorfundingrequirements.These
benefitsaresummarizedasfollows:
Post-EmploymentInsuranceBenefits –Allretireesofthecityhavethe
optionunderstatelawtocontinuetheirmedicalinsurancecoverage
throughthecityfromthetimeofretirementuntiltheemployeereachesthe
ageofeligibilityforMedicare.Formembersofallemployeegroups,the
retireemustpaythefullpremiumtocontinuecoverageformedicaland
dentalinsurance.
Thecityislegallyrequiredtoincludeanyretireesforwhomitprovides
healthinsurancecoverageinthesameinsurancepoolasitsactive
employees,whetherthepremiumsarepaidbythecityortheretiree.
Consequently,participatingretireesareconsideredtoreceivea
secondarybenefitknownasan“implicitratesubsidy.”Thisbenefitrelates
totheassumptionthattheretireeisreceivingamorefavorablepremium
ratethantheywouldotherwisebeabletoobtainifpurchasinginsurance
ontheirown,duetobeingincludedinthesamepoolwiththecity’s
youngerandstatisticallyhealthieractiveemployees.
B.FundingPolicy
Therequiredcontributionisbasedonprojectedpay-as-you-gofinancing
requirements,withadditionalamountstopre-fundbenefitsasdetermined
annuallybythecity.
47
NotestotheFinancialStatements
December31,2014 CITYOFMONTICELLO
C.AnnualOPEBCostandNetOPEBObligation
Thecity’sannualOPEBcost(expense)iscalculatedbasedontheARCofthe
city,anamountdeterminedonanactuariallydeterminedbasisinaccordance
withtheparametersofGASBStatementNos.43and45.TheARCrepresentsa
levelfundingthat,ifpaidonanongoingbasis,isprojectedtocovernormalcosts
eachyearandamortizeanyunfundedactuarialliabilities(orfundingexcess)
overaperiodnottoexceed30years.Thefollowingtableshowsthecomponents
ofthecity’sannualOPEBcostfortheyear,theamountactuallycontributedto
theplan,andthechangesinthecity’snetOPEBobligationtotheplan:
ARC 39,276$
InterestonnetOPEBobligation 10,224
AdjustmenttoARC (14,782)
AnnualOPEBcost(expense)34,718
Lesscontributionmade 6,761
IncreaseinnetOPEBobligation 27,957
NetOPEBobligation–beginningofyear 255,604
NetOPEBobligation–endofyear 283,561$
Thecity’sannualOPEBcost,thepercentageofannualOPEBcostcontributedto
theplan,andthenetOPEBobligationforthelastthreeyearsareasfollows:
Percentage
Beginning ofAnnual
Fiscal OPEB Annual EmployerOPEBCostNetOPEB
YearEnded ObligationOPEBCostContributionContributedObligation
January1,2012 182,507$56,654$23,498$41.5%215,663$
January1,2013 215,663$57,761$17,820$30.9%255,604$
January1,2014 255,604$34,718$6,761$19.5%283,561$
D.FundedStatusandFundingProgress
AsofJanuary1,2014,themostrecentactuarialvaluationdate,theplanwas
zeropercentfunded.Theactuarialaccruedliabilityforbenefitswas$265,486
andtheactuarialvalueofassetswas$0,resultinginanunfundedactuarial
accruedliability(UAAL)of$265,486.Thecoveredpayroll(annualpayrollof
activeemployeescoveredbytheplan)was$3,914,601,andtheratioofthe
UAALtothecoveredpayrollwas6.78percent.
Actuarialvaluationsofanongoingplaninvolveestimatesofthevalueof
reportedamountsandassumptionsabouttheprobabilityoccurrenceofevents
farintothefuture.Examplesincludeassumptionsaboutfutureemployment,
mortality,andthehealthcarecosttrend.Amountsdeterminedregardingthe
fundedstatusoftheplanandARCoftheemployeraresubjecttocontinual
revisionasactualresultsarecomparedwithpastexpectationsandnew
estimatesaremadeaboutthefuture.TheScheduleofFundingProgress
immediatelyfollowingthenotestobasicfinancialstatementspresentsmulti-
yeartrendinformationaboutwhethertheactuarialvalueofplanassetsis
increasingordecreasingovertimerelativetotheactuarialaccruedliabilities
forbenefits.
E.ActuarialMethodsandAssumptions
Projectionsofbenefitsforfinancialreportingpurposesarebasedonthe
substantiveplan(theplanasunderstoodbytheemployerandtheplan
members)andincludethetypesofbenefitsprovidedatthetimeofeach
valuationandthehistoricalpatternofsharingofbenefitcostsbetweenthe
employerandplanmemberstothatpoint.Theactuarialmethodsand
assumptionsusedincludetechniquesthataredesignedtoreducetheeffects
ofshort-termvolatilityinactuarialaccruedliabilitiesandtheactuarialvalueof
assets,consistentwiththelong-termperspectiveofthecalculations.
IntheJanuary1,2014actuarialvaluation,theprojectedunitcreditactuarial
costmethodwasused.Theactuarialassumptionsincluded:a4.0percent
investmentrateofreturn(netofadministrativeexpenses)basedonthecity’s
owninvestments;anannualhealthcarecosttrendrateof10.0percentinitially,
reducedbydecrementstoanultimaterateof5.0percentafter10yearsfor
medicalinsurance.TheassumptionsuseddidnotincludeOPEBinflation
increases.ThecityhaschosentoamortizetheentireUAALasaleveldollar
amountovera30yearopenperiod.Thismethodwillre-amortizetheUAAL
eachyearover30years.Absentactuarialgains,theUAALwillneverbefully
recognizedunderthismethod.
48
NotestotheFinancialStatements
December31,2014 CITYOFMONTICELLO
NOTE11.FUNDBALANCES
Classifications
AtDecember31,2014,asummaryofthecity’sgovernmentalfundbalanceclassificationsareasfollows:
Economic Debt Park
General Community Development Service Capital Pathway Nonmajor
Fund Center Authority Fund Projects Dedication Funds Total
Nonspendable
Prepaiditems 126,327$17,925$8,336$–$–$–$1,737$154,325$
Landheldforresale ––––1,787,089 ––1,787,089
Totalnonspendable 126,327 17,925 8,336 –1,787,089 –1,737 1,941,414
Restricted
Debtservice –––3,919,070 –––3,919,070
Economicdevelopment ––1,098,621 –––1,105,077 2,203,698
Perpetualcare ––––––30,312 30,312
Taxincrement ––4,300,369 ––––4,300,369
Totalrestricted ––5,398,990 3,919,070 ––1,135,389 10,453,449
Assigned
Capitalimprovements ––––1,108,530 –3,547,634 4,656,164
Economicdevelopment ––1,504,348 ––––1,504,348
Communitycenter
operations –422,899 –––––422,899
Parkimprovements –––––738,333 –738,333
Totalassigned –422,899 1,504,348 –1,108,530 738,333 3,547,634 7,321,744
Unassigned 4,204,731 ––––––4,204,731
Total 4,331,058$440,824$6,911,674$3,919,070$2,895,619$738,333$4,684,760$23,921,338$
SpecialRevenueFunds
49
NotestotheFinancialStatements
December31,2014 CITYOFMONTICELLO
NOTE12.RISKMANAGEMENTANDLITIGATION
Thecityisexposedtovariousrisksoflossesrelatedtotorts;theftof,damageto,
anddestructionofassets;errorsandomissions;injuriestoemployees;and
naturaldisasters.Forthepastseveralyears,thecityhasobtainedinsurance
coveragefromvarioustrustsadministeredbytheLeagueofMinnesotaCities.
Additionally,thecityhaseffectivelymanagedriskthroughvariousemployee
educationandpreventionprograms.
Allriskmanagementactivitiesareaccountedforintheappropriatefund.
Expendituresandclaimsarerecognizedwhenitisprobablethatalosshas
occurred,theamountofthelosscanbereasonablyestimated,andtheloss
amountexceedsinsurancecoverage.Indeterminingclaims,eventsthatmight
createclaims,butforwhichnonehavebeenreported,areconsidered.
Thecityattorneyestimatesthattheamountofactualorpotentialclaimsagainst
thecityasofDecember31,2014willnotmateriallyaffectthefinancialcondition
ofthecity.
WorkerscompensationcoverageisprovidedthroughtheLeagueofMinnesota
CitiesInsuranceTrust(LMCIT).Thisisagroupself-insuredworkers’
compensationplan.NearlyeverymunicipalityinMinnesotaparticipatesinthe
plan.Thecityhasneverhadtocontributeanyadditionalfundsbeyondthe
annualstandardpremiumanddeductibles,whichis$1,000peroccurrence.The
city’sannualpremiumreflectsabaseratemultipliedbyanexperience
modificationof76%.
Thecityprovideshealthbenefitcoveragetoallfull-timeemployeesandcertain
part-timeemployeeswhomeetpersonnelpolicysetcriteria.Thecitypaysa
portionofthepremium,whichissetannuallybycouncilaction,andisnot
obligatedtomakeanyotherpayments.
Thecityalsopurchasesproperty,vehicle,liabilityandvariousotherinsurance
coveragesfromtheLMCIT.Thestandarddeductibleformostclaimsis$1,000.
Statestatutesetstortlimitsformostliabilityclaimsat$500,000perindividual
and$1,500,000forallclaimantsforoneincident.Annually,thecouncilcanwaive
thetortlimits,buthaschosennottowithoutexception.Thecityperiodically
receivesadividendfromLMCITandhasneverhadtocontributeadditionalfunds
beyondpremiumsanddeductibles.
Therewerenosignificantreductionsininsurancecoveragesfromtheprevious
yearandtherewerenosettlementsinexcessofinsurancecoverageineachof
thepastthreeyears.
NOTE13.SPECIALITEM:LEGALSETTLEMENTWITHREVENUE
BONDHOLDERSRESULTINGINGAINONEXTINGUISHMENTOF
DEBT
OnJune6,2012,thecitynotifiedthetrusteeforthe$26,445,000Monticello
TelecommunicationsRevenueBonds,Series2008thatitwouldnolonger
makemonthlysinkingfundpaymentsfromsupplementalsources.Atechnical
defaultoccurredonJuly1,2012,whenthecityfailedtomakethesinkingfund
payment.OnDecember1,2012,thefirstpaymentdefaultoccurred,asthe
trusteeoptednottotapthe$2.3millioninthebondreservefundsinorderto
makean$882,669interestpaymentdueonthatdate.Asecondnon-payment
defaultoccurredonJune1,2013,whenan$882,669interestand$85,000
principalpaymentwasnotmade.Athirdnon-paymentdefaultoccurredon
December1,2013,whenan$879,906interestpaymentwasnotmade.
Underthethreatoflitigationfrombondholders,thecityenteredintoatolling
agreementwiththetrusteeonApril1,2013inordertopermittimeforgood
faithnegotiationstowardasettlementagreement.OnOctober2,2013,thecity
andtrustee,onbehalfofbondholders,enteredintoasettlementagreement
wherebythecitywouldpaya$5.75millionsettlement(21.7percentoforiginal
par)inexchangeforreleasefromallfuturedebtservicerequirementsonthe
bonds,releasefromanyfutureclaimsfrombondholders,andtheabilityto
continuetoownandoperatethetelecommunicationsenterprise.The
settlementagreementreceivedapprovalbystateandfederalcourtsin2014.
Thecitysoldtax-supportedgeneralobligationsbondsinDecember2014and
paidthesettlementamountpriortoyearend.
Theextinguishmentofdebtresultedina$20,990,451FiberOpticsFundgain,
whichisreportedasaspecialitemintheStatementofActivitiesandthe
StatementofRevenues,ExpensesandChangesinNetPosition–Proprietary
Funds.Thegainiscalculatedbysubtractingthe$5.75millionsettlementand
amountsheldintrustaccountsfromtheparvalueofbondsoutstandingplus
accruedinterestpayable.
Priortofederalcourtapproval,bondholdershadtheoptiontooptoutofthe
agreementandpursuedamagesindependently.Onebondholderoptedoutof
thesettlement.Theparvalueofbondsownedbytheoptingoutpartyequaled
$20,000or.076%oftheoriginalissueamount.Thepotentialremainingliability
isimmaterialanditisnotreportedinthefinancialstatements.
50
NotestotheFinancialStatements
December31,2014 CITYOFMONTICELLO
NOTE14.INTERFUNDTRANSFERS
InterfundtransfersfortheyearendedDecember31,2014consistedofthe
following:
TransfersIn TransfersOut
Governmentalfunds:
GeneralFund -$293,000$
CommunityCenter 50,000 1,040,000
EconomicDevelopment 93,000 218,353
ParkandPathwayDedication 664,500 -
DebtService 3,906,885 5,783,732
CapitalProjects 200,000 664,500
Nonmajorgovernmental -326,300
Totalgovernmentalfunds 4,914,385 8,325,885
Enterprisefunds:
Water -631,560
Sewage -1,690,672
Liquor -600,000
FiberOptics 6,383,732 -
DeputyRegistrar -50,000
Totalenterprisefunds 6,383,732 2,972,232
Total 11,298,117$11,298,117$
Thefollowingschedulereflectseachfundtransfer:
InFund OutFund Amount
CommunityCenter DeputyRegistrar 50,000$(1)
EconomicDevelopment General 93,000 (2)
CapitalProjects 200,000 (3)
ParkandPathwayDedication CapitalProjects 664,500 (4)
DebtService CommunityCenter 1,040,000 (5)
EconomicDevelopment 218,353 (5)
Water 631,560 (5)
Sewage 1,690,672 (5)
Stormwater 326,300 (5)
FiberOptics Liquor 600,000 (6)
DebtService 5,783,732 (7)
Total 11,298,117$
(1)Transferforresurfacingcommunitycentergymfloor.
(2)Annualtransfertosubsidizefundoperations.
(3)Transferforcommunicationtowerconstruction.
(4)Transferforlandacquisitionandrelatedexpenditures.
(5)Transferforprincipalandinterestpaymentsonvariousdebtissues.
(6)Transfertosubsidizefundoperatingandcapitalexpenditures.
(7)Bondissueproceedspaidinlegalsettlementwithrevenuebondholders.
51
(Thispageleftblankintentionally)
52
REQUIRED SUPPLEMENTARY INFORMATION
CITYOFMONTICELLO
RequiredSupplementaryInformation
SchedulesofFundingProgress
Statutory Statutory (Unfunded)
Valuation Valueof Accrued Funded Funded
Date PlanAssets Liability(SAL)SAL Ratio
2009 1,010,161$1,153,913$(143,752)$87.5%
2010 1,136,892 1,190,292 (53,400)95.5%
2011 1,127,049 1,220,891 (93,842)92.3%
2012 1,046,960 1,031,472 15,488 101.5%
2013 1,114,949 965,425 149,524 115.5%
2014 1,053,739 924,403 129,336 114.0%
Unfunded Unfunded
Actuarial Actuarial Actuarial Actuarial Liabilityasa
Valuation Accrued Valueof Accrued Funded Covered Percentage
Date Liability PlanAssets Liability Ratio Payroll ofPayroll
January1,2008 302,787$-$302,787$--%3,080,457$9.83%
January1,2011 362,290 -362,290 --%3,108,685 11.65%
January1,2014 265,486 -265,486 --%3,914,601 6.78%
Note:TheMonticelloVolunteerFiremen'sReliefAssociationiscomprisedofvolunteers;therefore
therearenopayrollexpenditures(i.e.therearenocoveredpayrollpercentagecalculations).
MonticelloFireDepartmentReliefAssociation
CityofMonticelloOtherPost-EmploymentBenefitsPlan
53
CITYOFMONTICELLO
ScheduleofRevenues,ExpendituresandChangesinFundBalance
BudgetandActual-GeneralFund
YearEndedDecember31,2014
OrginalandFinal Variancewith
Budget Actual FinalBudget
Revenues:
Propertytaxes 5,497,000$5,507,285$10,285$
Franchiseandothertaxes 236,500 237,173 673
Licensesandpermits 273,180 378,810 105,630
Intergovernmental 289,177 320,691 31,514
Chargesforservices 261,698 319,477 57,779
Finesandforfeitures 100 1,900 1,800
Specialassessments 300 22,808 22,508
Investmentearnings 130,800 150,754 19,954
Otherrevenues 71,245 180,104 108,859
Totalrevenues 6,760,000 7,119,002 359,002
Expenditures:
Current
Generalgovernment
Mayorandcouncil 53,925 52,181 (1,744)
Cityadministration 294,406 273,993 (20,413)
Elections 37,573 41,835 4,262
Finance 398,896 385,662 (13,234)
Audit 41,000 53,541 12,541
Cityassessing 51,915 49,832 (2,083)
Legal 37,000 29,303 (7,697)
Humanresources 105,820 90,565 (15,255)
Planning&zoning 200,005 220,080 20,075
Informationtechnologyservices 47,845 33,759 (14,086)
Cityhall 217,364 205,770 (11,594)
Prairiecenterbuilding 20,785 14,409 (6,376)
Publicsafety
Lawenforcement 1,098,726 1,098,403 (323)
Fire&rescue 263,610 306,780 43,170
Firerelief 75,000 108,186 33,186
Buildinginspections 284,605 266,544 (18,061)
Civildefense 3,836 1,660 (2,176)
Animalcontrol 49,022 49,439 417
NationalGuard 22,250 14,061 (8,189)
(continued)
54
CITYOFMONTICELLO
ScheduleofRevenues,ExpendituresandChangesinFundBalance
BudgetandActual-GeneralFund
YearEndedDecember31,2014 (continued)
OrginalandFinal Variancewith
Budget Actual FinalBudget
Expenditures(continued):
Publicworks
Publicworksadministration 119,290$122,151$2,861$
Engineering 136,916 195,841 58,925
Publicworksinspecitons 94,028 36,867 (57,161)
Streets&alleys 875,150 735,629 (139,521)
Ice&snow 237,136 308,387 71,251
Shop&garage 190,583 177,644 (12,939)
Stormwater 33,140 16,842 (16,298)
Parkinglots 9,303 3,814 (5,489)
Streetlighting 222,500 195,695 (26,805)
Sanitation
Refuseandrecyclingcollection 521,397 517,956 (3,441)
Transit
Busservice 3,000 10,000 7,000
Recreationandculture
Communitycelebrations 3,300 688 (2,612)
Seniorcenter 97,022 97,547 525
Parkoperations 696,835 570,639 (126,196)
Parkballfields 32,800 18,149 (14,651)
Shadetree 52,069 68,891 16,822
Library 38,948 36,764 (2,184)
Totalexpenditures 6,667,000 6,409,507 (257,493)
Excess(deficiency)ofrevenuesoverexpenditures 93,000 709,495 616,495
Otherfinancingsources(uses)
Transfersout (93,000)(293,000)(200,000)
Totalotherfinancingsources(uses)(93,000)(293,000)(200,000)
Netchangeinfundbalance -416,495 416,495
Fundbalanceatbeginningofyear 3,914,563 3,914,563 -
Fundbalanceatendofyear 3,914,563$4,331,058$416,495$
55
CITYOFMONTICELLO
ScheduleofRevenues,ExpendituresandChangesinFundBalance
BudgetandActual-CommunityCenterFund
YearEndedDecember31,2014
OrginalandFinal Variancewith
Budget Actual FinalBudget
Revenues:
Propertytaxes 1,390,000$1,388,404$(1,596)$
Chargesforservices 1,364,500 1,323,410 (41,090)
Investmentearnings 2,500 (19,044)(21,544)
Otherrevenues 8,000 22,993 14,993
Totalrevenues 2,765,000 2,715,763 (49,237)
Expenditures:
Current
Recreationandculture
Communitycenteroperations 1,537,090 1,430,279 (106,811)
Communitycenterprogramming 212,850 108,386 (104,464)
Ballfields 25,060 17,478 (7,582)
Totalexpenditures 1,775,000 1,556,143 (218,857)
Excess(deficiency)ofrevenuesoverexpenditures 990,000 1,159,620 169,620
Otherfinancingsources(uses)
Transfersin 50,000 50,000 -
Transfersout (1,040,000)(1,040,000)-
Totalotherfinancingsources(uses)(990,000)(990,000)-
Netchangeinfundbalance -169,620 169,620
Fundbalanceatbeginningofyear 271,204 271,204 -
Fundbalanceatendofyear 271,204$440,824$169,620$
56
CITYOFMONTICELLO
ScheduleofRevenues,ExpendituresandChangesinFundBalance
BudgetandActual-EconomicDevelopmentAuthorityFund
YearEndedDecember31,2014
OrginalandFinal Variancewith
Budget Actual FinalBudget
Revenues:
Propertytaxes 671,494$826,363$154,869$
Chargesforservices 1,000 4,128 3,128
Investmentearnings 106,938 168,282 61,344
Otherrevenues 95,476 7,513 (87,963)
Totalrevenues 874,908 1,006,286 131,378
Expenditures:
Current
Economicdevelopment
Generaloperations 114,000 120,242 6,242
Landheldforresaleadjustment 71,066 71,066
Developmentalactivities 328,604 893,256 564,652
Totalexpenditures 442,604 1,084,564 641,960
Excess(deficiency)ofrevenuesoverexpenditures 432,304 (78,278)(510,582)
Otherfinancingsources(uses)
Transfersin 93,000 93,000 -
Transfersout (278,353)(218,353)60,000
Totalotherfinancingsources(uses)(185,353)(125,353)60,000
Netchangeinfundbalance 246,951 (203,631)(450,582)
Fundbalanceatbeginningofyear 7,115,305 7,115,305 -
Fundbalanceatendofyear 7,362,256$6,911,674$(450,582)$
57
NotestotheRequiredSupplementaryInformation
December31,2014 CITYOFMONTICELLO
BudgetaryInformation
Thecityfollowstheseproceduresinestablishingthebudgetarydatareflectedin
thebasicfinancialstatements:
A.PriortoSeptember1,thecityadministratorsubmitstothecitycouncila
proposedoperatingbudgetforthefiscalyearcommencingthefollowing
January1.Theoperatingbudgetincludesproposedexpendituresand
themeansoffinancingthem.Thecitycounciladoptstheproposed
budgetasamendedandadjustedbythecitycouncilandcertifiesthe
proposedpropertytaxlevytothecountyauditoraccordingtoMinnesota
Statutes.
B.Publichearingsareconductedatthecitycouncil’schambersinthe
MonticelloCommunityCenter.
C.OnorbeforeDecember28,thefinalbudgetislegallyenactedbycity
councilresolutionandthefinalpropertytaxlevyiscertifiedtothecounty
auditor.
D.Managementisauthorizedtotransferbudgetedamountsbetween
departmentswithinafund;however,anyrevisionsthatalterthetotal
expendituresofanyfundmustbeapprovedbythecitycouncil.
E.ThecityhaslegallyadoptedbudgetsfortheGeneralFundandmajor
specialrevenuefunds.Expendituresmaynotlegallyexceedbudgeted
appropriationsatthetotalfundlevel.Monitoringofbudgetsis
maintainedatthedepartmentlevel.Allamountsoverbudgethavebeen
approvedbythecitycouncilthroughthedisbursementprocess.Thecity
isnotlegallyrequiredtoadoptanannualbudgetforthenonmajor
specialrevenuefunds,theDebtServiceFund,andtheCapitalProjects
Funds.Project-lengthfinancialplansareadoptedfortheDebtService
andCapitalProjectsFunds.
F.Budgetsareadoptedonabasisconsistentwithaccountingprinciples
generallyacceptedintheUnitedStatesofAmerica.Budgetedamounts
areasoriginallyadoptedoramendedbythecitycouncil.Allannual
appropriationslapseatyear-end.
58
NONMAJOR GOVERNMENTAL FUNDS
NONMAJORGOVERNMENTALFUNDS
SPECIALREVENUEFUNDS areusedtoaccountforrevenuederivedfromspecifictaxesorotherearmarkedrevenuesources(otherthanfor
majorcapitalprojects)thatarerestrictedbylaworadministrativeactiontoexpendituresforspecifiedpurposes.
MinnesotaInvestmentFund -Establishedtoaccountfortheadministrationofloanstolocalbusinesseswhilefollowingstateandfederal
guidelines.
CemeteryFund –Establishedtoaccountfortheactivitiesofcemeteryoperations.Thecitymaintainstwocemeteries:RiversideandHillside.
CDBGRevitalizationFund –EstablishedtoaccountforfundingandactivitiesfortheCDBGRevitalizationGrant.
CAPITALPROJECTSFUNDS areusedtoaccountforresourcesusedfortheacquisitionandconstructionofcapitalassetsbythecity,exceptfor
thosefinancedbyproprietaryfunds.
StormSewerAccessFund –Thisfundwasestablishedtoaccountforfeescollectedfrombuildingpermitsfornewconstructionandlot
development.Thefeeswillfinancemajorimprovementstothecity’sstormsewersystem.
CityStreetReconstructionFund –Thisfundwasestablishedtoaccountforannualimprovementstothecity’sinfrastructurebasedona
reconstructionschedule.
StreetLightingFund –Thisfundwasestablishedtoaccountforactivitiesincorporatingstreetlightingintodesignatedareasthroughoutthecity.A
portionofthecity’selectricfranchisefeeisthemainrevenuesourceforthisfund.
CITYOFMONTICELLO
CombiningBalanceSheet
NonmajorGovernmentalFunds
December31,2014
CityStreet Street
Minnesota CDBG-StormSewer Recon-Lighting
Investment Cemetery Revitalization Access struction Improvement Total
ASSETS
Cashandinvestments 1,104,689$33,330$388$873,721$1,750,910$847,887$4,610,925$
Currenttaxesreceivable ----123 -123
Accountsreceivable -----74,993 74,993
Notesreceivable --240,144 ---240,144
Prepaiditems -1,737 ----1,737
Totalassets 1,104,689$35,067$240,532$873,721$1,751,033$922,880$4,927,922$
LIABILITIES
Liabilities:
Accountsandcontractspayable -$3,018$-$-$-$-$3,018$
Totalliabilities -3,018 ----3,018
DEFERREDINFLOWSOFRESOURCES
Unavailablerevenue-notesreceivable --240,144 ---240,144
Totaldeferredinflowsofresources --240,144 ---240,144
FUNDBALANCES
Specialrevenuefunds
Nonspendable -1,737 ----1,737
Restrictedforeconomicdevelopment 1,104,689 -388 ---1,105,077
Restrictedforperpetualcare -30,312 ----30,312
Capitalprojectfunds
Assignedforcapitalimprovements ---873,721 1,751,033 922,880 3,547,634
Totalfundbalances 1,104,689 32,049 388 873,721 1,751,033 922,880 4,684,760
Totalliabilities,deferredinflowsof
resources,andfundbalances 1,104,689$35,067$240,532$873,721$1,751,033$922,880$4,927,922$
SpecialRevenueFunds CapitalProjectFunds
59
CITYOFMONTICELLO
CombiningStatementofRevenues,ExpendituresandChanges
inFundBalances-NonmajorGovernmentalFunds
YearEndedDecember31,2014
CityStreet Street
Minnesota CDBG-StormSewer Recon-Lighting
Investment Cemetery Revitalization Access struction Improvement Total
Revenues:
Propertytaxes -$-$-$-$176$-$176$
Franchisetaxes -----86,976 86,976
Chargesforservices -37,465 -38,494 --75,959
Investmentearnings 53,471 1,258 20 39,638 84,752 43,620 222,759
Totalrevenues 53,471 38,723 20 78,132 84,928 130,596 385,870
Expenditures:
Current:
Publicworks ---292 --292
Recreationandculture -22,385 ----22,385
Economicdevelopment -56 ---56
Totalexpenditures -22,385 56 292 --22,733
Excess(deficiency)of
Revenuesoverexpenditures 53,471 16,338 (36)77,840 84,928 130,596 363,137
Otherfinancingsources(uses):
Transfersout ---(326,300)--(326,300)
Totalotherfinancingsources(uses)---(326,300)--(326,300)
Netchangeinfundbalance 53,471 16,338 (36)(248,460)84,928 130,596 36,837
Fundbalanceatbeginingofyear 1,051,218 15,711 424 1,122,181 1,666,105 792,284 4,647,923
Fundbalanceatendofyear 1,104,689$32,049$388$873,721$1,751,033$922,880$4,684,760$
SpecialRevenueFunds CapitalProjectFunds
60
INTERNAL SERVICE FUNDS
INTERNALSERVICEFUNDS
INTERNALSERVICEFUNDS areusedtoaccountforthefinancingofcentralizedservicestocitydepartmentsonacost-reimbursementbasis
(includingdepreciation).
CentralEquipmentFund –Thisfundwasestablishedtoaccountforequipmentpurchaseandrentaltovariousgovernmentalfunddepartments.
InformationTechnology(IT)ServicesFund –ThisfundwasestablishedtoaccountfortheaccumulationanddistributionofvariousITrelated
costs,includingcommunications,softwaresupport,capitalandnon-capitalequipment,andsoftwarepurchases.
CITYOFMONTICELLO
CombiningStatementofNetPosition
InternalServiceFunds
December31,2014
Central IT
Equipment Services Total
ASSETS
Currentassets:
Cashandinvestments 985,907$82,705$1,068,612$
Prepaiditems -94 94
Totalcurrentassets 985,907 82,799 1,068,706
Noncurrentassets:
Capitalassets:
Machineryandequipment 656,491 17,013 673,504
Totalcapitalassets 656,491 17,013 673,504
Lessaccumulateddepreciation (34,570)(5,034)(39,604)
Totalcapitalassets(net)621,921 11,979 633,900
Totalnoncurrentassets 621,921 11,979 633,900
TOTALASSETS 1,607,828 94,778 1,702,606
LIABILITIES
Currentliabilities:
Accountspayable 73,335 23,912 97,247
Accruedinterestpayable 1,382 -1,382
Duetoothergovernmentalunits -73 73
Bondspayableduewithinoneyear 60,000 -60,000
Totalcurrentliabilities 134,717 23,985 158,702
Noncurrentliabilities:
Bondspayable,netcurrentportion 840,000 -840,000
Totalnoncurrentliabilities 840,000 -840,000
TOTALLIABILITIES 974,717 23,985 998,702
NETPOSITION
Netinvestmentincapitalassets (278,079)11,979 (266,100)
Unrestricted 911,190 58,814 970,004
TOTALNETPOSITION 633,111$70,793$703,904$
61
CITYOFMONTICELLO
CombiningStatementofRevenues,ExpensesandChanges
inNetPosition-InternalServiceFunds
YearEndedDecember31,2014
Central IT
Equipment Services Total
Operatingrevenues:
Chargestootherfunds 111,900$252,708$364,608$
Totaloperatingrevenues 111,900 252,708 364,608
Operatingexpenses:
Materialsandsupplies -22,803 22,803
Otherservicesandcharges 28,362 195,916 224,278
Depreciation 24,494 3,403 27,897
Totaloperatingexpenses 52,856 222,122 274,978
Operatingincome(loss)59,044 30,586 89,630
Nonoperatingrevenues(expenses)
Investmentearnings 42,527 2,864 45,391
Interestexpense (6,992)(6,992)
Totalnonoperatingrevenues(expenses)35,535 2,864 38,399
Changeinnetposition 94,579 33,450 128,029
Netpositionatbeginningofyear 538,532 37,343 575,875
Netpositionatendofyear 633,111$70,793$703,904$
62
CITYOFMONTICELLO
CombiningStatementofCashFlows
InternalServiceFunds
YearEndedDecember31,2014
Central IT
Equipment Services Total
Cashflowfromoperatingactivities:
Cashreceivedfrominternalcustomers 111,900$252,708$364,608$
Cashpaidtosuppliersforgoodsandservices 44,973 (207,395)(162,422)
Netcashprovidedbyoperatingactivities 156,873 45,313 202,186
Cashflowsfromcapitalandrelatedfinancingactivities:
Acquisitionofcapitalassets (561,491)-(561,491)
Proceedsfromissuanceoflong-termdebt 515,000 -515,000
Principalpaymentsonlong-termdebt (60,000)-(60,000)
Interestandfiscalchargespaidonbonds (6,120)-(6,120)
Netcash(used)bycapitalandrelatedfinancingactivities (112,611)-(112,611)
Cashflowsfrominvestingactivities
Interestoninvestments 42,527 2,864 45,391
Netcashprovidedbyinvestingactivities 42,527 2,864 45,391
Increase(decrease)incashandcashequivalents 86,789 48,177 134,966
Cashandcashequivalents-January1 899,118 34,528 933,646
Cashandcashequivalents-December31 985,907$82,705$1,068,612$
Reconciliationofoperatingincome(loss)tonetcash
providedbyoperatingactivities:
Operatingincome(loss)59,044$30,586$89,630$
AdjustmentstoReconcileOperatingIncome(Loss)
toNetCashProvidedbyOperatingActivities:
Depreciation 24,494 3,403 27,897
Changesinassetsandliabilities:
Increaseinprepaiditems -(94)(94)
Increaseinaccountsandcontractspayable 73,335 11,345 84,680
Increaseinduetoothergovernmentunits -73 73
Netcashprovidedbyoperatingactivities 156,873$45,313$202,186$
Noncashinvesting,capital,andfinancingactivities:
Increase(decrease)infairvalueofinvestments 22,056$2,041$24,097$
63
(Thispageleftblankintentionally)
64
OTHER SUPPLEMENTARY SCHEDULES
CITYOFMONTICELLO
ScheduleofAssets,Liabilities,DeferredInflowsofResources,andFundBalances
DebtServiceActivities
December31,2014
Revenue
Bonds
2007A 2008B 2010A 2011A 2014A 2008
Improvement Sewer Improvement Refunding Bonds PublicProject Total
ASSETS
Cashandcashequivalents 547,724$879,156$586,678$1,516,432$169,152$1,799$3,700,941$
Receivables:
Currenttaxes 1,424 1,319 -588 --3,331
Deliquenttaxes 4,423 396 -1,782 --6,601
Currentspecialassessments 93,925 -43,322 646,698 --783,945
Deliquentspecialassessments 2,962 -12,743 1,433,896 --1,449,601
Deferredspecialassessments 393,994 -226,507 2,763,183 --3,383,684
Accountsreceivable ---215,800 --215,800
Notesreceivable ---400,000 --400,000
Totalassets 1,044,452$880,871$869,250$6,978,379$169,152$1,799$9,943,903$
LIABILITIES
Liabilities:
Accountsandcontractspayable 167 167 167 167 167 167 1,002
Totalliabilities 167 167 167 167 167 167 1,002
DEFERREDINFLOWSOFRESOURCES
Unavailablerevenue-propertytaxes 4,423 396 -1,782 --6,601
Unavailablerevenue-specialassessments 490,881 -282,572 4,843,777 --5,617,230
Unavailablerevenue-notesreceivable ---400,000 --400,000
Totaldeferredinflowsofresources 495,304 396 282,572 5,245,559 --6,023,831
FUNDBALANCES
Restrictedfordebtservice 548,981 880,308 586,511 1,732,653 168,985 1,632 3,919,070
Totalfundbalances 548,981 880,308 586,511 1,732,653 168,985 1,632 3,919,070
Totalliabilities,deferredinflows
ofresources,andfundbalances 1,044,452$880,871$869,250$6,978,379$169,152$1,799$9,943,903$
GeneralObligationBonds
65
CITYOFMONTICELLO
ScheduleofRevenues,ExpendituresandOtherFinancingSources(Uses)
DebtServiceActivities
YearEndedDecember31,2014
Revenue
Bonds
2007A 2008B 2010A 2011A 2014A 2008
Improvement Sewer Improvement Refunding Bonds PublicProject Total
Revenues:
Propertytaxes 539,672$499,697$-$222,866$-$-$1,262,235$
Specialassessments 378,594 -61,311 1,049,371 --1,489,276
Investmentearnings (4,309)21,686 26,608 51,357 778 561 96,681
Otherrevenue:
Other --3 200,000 --200,003
Totalrevenues 913,957 521,383 87,922 1,523,594 778 561 3,048,195
Expenditures:
Debtservice
Principal 527,000 894,000 320,000 2,680,000 -990,000 5,411,000
Interestandfiscalcharges 98,877 155,360 40,765 200,767 115,687 47,527 658,983
Totalexpenditures 625,877 1,049,360 360,765 2,880,767 115,687 1,037,527 6,069,983
Excess(deficiency)of
Revenuesoverexpenditures 288,080 (527,977)(272,843)(1,357,173)(114,909)(1,036,966)(3,021,788)
Otherfinancingsources(uses):
Generalobligationbondsissued ----6,080,000 -6,080,000
Discountongeneralobligationbonds ----(12,374)-(12,374)
Transfersin -857,337 239,595 1,769,953 -1,040,000 3,906,885
Transfersout ----(5,783,732)-(5,783,732)
Totalotherfinancingsources(uses)-857,337 239,595 1,769,953 283,894 1,040,000 4,190,779
Netchangeinfundbalance 288,080 329,360 (33,248)412,780 168,985 3,034 1,168,991
Fundbalanceatbeginingofyear 260,901 550,948 619,759 1,319,873 -(1,402)2,750,079
Fundbalanceatendofyear 548,981$880,308$586,511$1,732,653$168,985$1,632$3,919,070$
GeneralObligationBonds
66
CITYOFMONTICELLO
ScheduleofRevenues(Sources)andExpenditures(Uses)
GeneralFund
YearEndedDecember31,2014
2014 Variancewith
2011 2012 2013 Final 2014 Final
Actual Actual Actual Budget Actual Budget
Revenueandothersources-summary:
Propertytaxes 5,166,194$5,711,491$5,605,101$5,516,500$5,527,958$11,458$
Franchisetaxes 75,500 195,500 217,000 217,000 216,500 (500)
Specialassessments 3,550 10,349 22,351 300 22,808 22,508
Licenses&Permits 249,498 275,198 331,136 273,180 378,810 105,630
IntergovernmentalRevenue 268,936 301,895 372,632 289,177 320,691 31,514
ChargesforServices 399,545 312,807 281,138 261,698 319,477 57,779
Fines&Forfeitures 55,700 63,106 41,124 100 1,900 1,800
InvestmentEarnings 308,219 85,603 (52,134)130,800 150,754 19,954
MiscellaneousRevenue 128,740 406,167 169,997 71,245 180,104 108,859
InterfundTransfers -1,729 ----
TotalRevenues&OtherSources 6,655,882 7,363,845 6,988,345 6,760,000 7,119,002 359,002
Revenueandothersources-detail:
Taxes
Propertytax-current 5,092,937 5,420,093 5,505,158 5,497,000 5,483,145 (13,855)
Propertytax-delinquent 55,389 249,876 75,279 -24,140 24,140
Mobilehometax 14,508 12,790 13,362 14,500 17,575 3,075
Penaltiesandinterest-taxes 3,360 28,732 11,302 5,000 3,098 (1,902)
Franchisetaxes
Franchisetax-electric 75,000 195,000 216,500 216,500 216,500 -
Franchisetax-other 500 500 500 500 -(500)
Specialassessments
Assessmentforservices/projects 3,550 10,349 22,351 300 22,808 22,508
Licenses&Permits
Liquorlicense 51,726 50,290 50,320 50,280 44,612 (5,668)
Beerlicense 912 913 912 900 964 64
Otherbusinesslicenses&permits 4,403 4,673 3,476 3,500 3,707 207
Buildingpermits 179,749 207,574 260,981 212,000 315,466 103,466
Variance/conditionalusepermits 1,800 2,800 2,550 1,100 2,600 1,500
Drivewaypermits 150 75 50 150 25 (125)
Gradingpermits 5,073 --200 -(200)
Mobilehomepermits 190 380 475 200 95 (105)
Excavationpermits -1,250 3,050 -3,850 3,850
Right-of-waypermits -3,551 3,092 -3,158 3,158
Sign/bannerpermits 4,910 3,320 5,790 4,500 4,025 (475)
Animallicenses 585 372 440 350 308 (42)
IntergovernmentalRevenue
Homesteadcredit 8,708 -----
Peraincreaseaid 6,741 6,741 6,741 6,740 6,741 1
continued…
67
CITYOFMONTICELLO
ScheduleofRevenues(Sources)andExpenditures(Uses)
GeneralFund
YearEndedDecember31,2014 (continued)
2014 Variancewith
2011 2012 2013 Final 2014 Final
Actual Actual Actual Budget Actual Budget
Statehighwayaid-operating 96,957 109,379 107,173 101,737 111,280 9,543
Firedepartmentaid-operating 73,007 74,221 109,594 75,000 108,186 33,186
Policedepartmentaid-operating 60,700 59,062 65,767 60,700 63,205 2,505
Countyoperatinggrant-street/highway -41,370 38,579 15,000 -(15,000)
Countyoperatinggrant-civildefense 22,823 11,122 11,678 15,000 13,157 (1,843)
Countyoperatinggrant-recycling --33,100 15,000 18,122 3,122
ChargesforServices
Zoning/subdivisionfees 1,325 2,500 850 500 1,200 700
Saleofmapsandpublications 35 38 15 25 -(25)
Assessmentsearches 1,850 2,850 7,125 1,850 8,174 6,324
Blightnoticefee 7,575 350 2,200 -(1,650)(1,650)
Finalplatfee 175 100 50 -250 250
Planningadministrationfee 578 30,007 450 600 550 (50)
NSFfee 85 ---90 90
Inspection/constructionfees -451 861 -983 983
Inspectionfees-buildings 49,194 -----
Contractorlicensingfee 50 550 1,300 100 1,825 1,725
Fireprotectionsfees-townships 136,629 133,773 124,227 118,663 124,227 5,564
Fireemergencyresponsefee 3,354 7,000 4,250 3,500 4,883 1,383
Fire-otherfees 350 6,024 3,091 600 2,050 1,450
Blightmowingfees 6,027 682 1,865 1,000 (559)(1,559)
Rentalhousingfees 45,485 36,415 43,355 45,000 55,030 10,030
Animalcontrolfees 54,279 28,755 29,539 30,000 34,462 4,462
Investmentadministrationfee 26,761 -----
Miscellaneouspubicworks -186 --8,981 8,981
Treeandbrushremovalcharge 1,120 --1,000 2,200 1,200
Recyclingbinfee 334 485 -300 -(300)
Garbagefee-taxable 43,514 44,069 44,199 43,700 44,992 1,292
Garbagemiscellaneousfee 696 660 786 100 17,488 17,388
Garbagesurcharge-nottaxable 7,760 7,863 7,887 7,760 2,340 (5,420)
Field/Tourneyfees 5,234 3,250 3,906 2,500 4,019 1,519
Parkrentalfees 5,333 4,524 4,982 4,500 5,099 599
Developercostreimbursement 1,752 138 200 -2,843 2,843
Generalchargesforservices 50 2,137 ----
Fines&Forfeitures
Courtfines 55,615 48,768 39,399 ---
Animalimpoundfines 85 145 225 100 400 300
Liquorlicenseviolation -1,500 1,500 -1,500 1,500
Administrationoffensefines -12,693 ----
InvestmentEarnings
Investmentearnings 295,189 73,623 (62,833)120,000 145,211 25,211
continued…
68
CITYOFMONTICELLO
ScheduleofRevenues(Sources)andExpenditures(Uses)
GeneralFund
YearEndedDecember31,2014 (continued)
2014 Variancewith
2011 2012 2013 Final 2014 Final
Actual Actual Actual Budget Actual Budget
Interest-Andersonloan 3,332 2,748 1,954 2,100 -(2,100)
Interest-SwanRiverloan 9,698 9,232 8,745 8,700 5,543 (3,157)
MiscellaneousRevenue
Citypropertyrental 2,176 1,600 1,600 1,600 1,600 -
Billboardlandrental -32,023 19,888 12,400 20,146 7,746
Miscellaneouspark ----2,520 2,520
Lease-PrairieCenter 32,497 37,933 38,476 36,600 37,511 911
Lease-communicationtower ----8,000 8,000
Contributions 10,050 6,277 23,250 2,500 4,000 1,500
Saleofcityproperty 2,185 3,021 374 500 1,994 1,494
Saleoflockboxes 1,361 684 1,015 700 855 155
TreeSales ----5,600 5,600
Copies 79 381 -70 21 (49)
Refunds&reimbursables 39,796 76,892 44,100 10,000 55,030 45,030
Assessmentfeereimbursement 28,982 29,850 24,525 -24,675 24,675
Firecontributions ----11,400 11,400
Insuranceclaims/dividends -195,830 9,433 ---
Othermiscellaneous 11,614 21,676 7,336 6,875 6,752 (123)
OtherFinancingSources
Transfersfromotherfunds -1,729 ----
Totalrevenuesandothersources 6,655,882 7,363,845 6,988,345 6,760,000 7,119,002 359,002
Expendituresandotheruses-summary:
Generalgovernment 1,419,994 1,412,578 1,389,599 1,497,518 1,438,346 (59,172)
Publicsafety 1,784,025 1,784,357 1,844,833 1,797,049 1,845,073 48,024
Publicworks 1,656,622 1,702,395 1,700,161 1,918,046 1,792,870 (125,176)
Sanitation 495,693 500,037 505,996 521,397 517,956 (3,441)
Transit ---3,000 10,000 7,000
Recreationandculture 828,600 814,260 853,777 920,974 792,678 (128,296)
Generalunallocated 398,995 279,302 165,923 9,016 12,584 3,568
Transfersoutandotheruses 728,383 2,393,502 92,000 93,000 293,000 200,000
Totalexpendituresandotheruses 7,312,312 8,886,431 6,552,289 6,760,000 6,702,507 (57,493)
Expendituresandotheruses-divisions:
Generalgovernment
MayorandCouncil 52,078 51,988 53,696 53,925 52,181 (1,744)
CityAdministration 238,736 228,738 260,322 294,406 273,993 (20,413)
Elections 1,000 38,933 2,425 37,573 41,835 4,262
Finance 377,894 337,348 326,510 398,896 385,662 (13,234)
Audit 42,720 39,227 47,823 41,000 53,541 12,541
CityAssessing 49,032 49,600 49,664 51,915 49,832 (2,083)
Legal 42,491 40,275 46,905 37,000 29,303 (7,697)
continued…
69
CITYOFMONTICELLO
ScheduleofRevenues(Sources)andExpenditures(Uses)
GeneralFund
YearEndedDecember31,2014 (continued)
2014 Variancewith
2011 2012 2013 Final 2014 Final
Actual Actual Actual Budget Actual Budget
HumanResources 74,537 84,041 93,067 105,820 90,565 (15,255)
Planning&Zoning 173,918 163,629 182,753 200,005 220,080 20,075
InformationTechnologyServices 116,790 130,102 95,572 47,845 33,759 (14,086)
CityHall 223,887 233,602 215,507 208,348 193,186 (15,162)
PrairieCenterBuilding 26,911 15,095 15,355 20,785 14,409 (6,376)
Publicsafety
LawEnforcement 1,176,985 1,187,382 1,190,441 1,098,726 1,098,403 (323)
Fire&Rescue 195,801 207,778 222,141 263,610 306,780 43,170
FireRelief 72,647 74,221 109,594 75,000 108,186 33,186
BuildingInspections 245,272 248,376 251,007 284,605 266,544 (18,061)
CivilDefense 26,823 2,719 9,707 3,836 1,660 (2,176)
AnimalControl 45,829 49,594 47,426 49,022 49,439 417
NationalGuard 20,668 14,287 14,517 22,250 14,061 (8,189)
Publicworks
PublicWorksAdministration 181,639 176,457 113,882 119,290 122,151 2,861
Engineering 220,078 200,287 224,028 136,916 195,841 58,925
PublicWorksInspecitons 45,749 64,827 54,878 94,028 36,867 (57,161)
Streets&Alleys 615,836 655,170 689,046 875,150 735,629 (139,521)
Ice&Snow 173,842 133,193 210,552 237,136 308,387 71,251
Shop&Garage 185,191 219,646 186,741 190,583 177,644 (12,939)
Stormwater 16,553 51,468 12,064 33,140 16,842 (16,298)
ParkingLots 11,748 4,568 2,965 9,303 3,814 (5,489)
StreetLighting 205,986 196,779 206,005 222,500 195,695 (26,805)
Sanitation
RefuseCollection 495,693 500,037 505,996 521,397 517,956 (3,441)
Transit
Transitservices ---3,000 10,000 7,000
Recreationandculture
CommunityCelebrations 39 5,165 1,186 3,300 688 (2,612)
SeniorCenter 93,171 88,441 90,219 97,022 97,547 525
IceArena 75,000 75,000 75,000 ---
ParkOperations 561,078 533,537 572,985 696,835 570,639 (126,196)
ParkImprovements ------
ParkBallfields 18,546 29,419 25,517 32,800 18,149 (14,651)
ShadeTree 44,479 52,983 53,475 52,069 68,891 16,822
Library 36,287 29,715 35,395 38,948 36,764 (2,184)
Generalunallocated
Insurancesandother 398,995 279,302 165,923 9,016 12,584 3,568
Transfersoutandotheruses
Transfersout 728,383 2,393,502 92,000 93,000 293,000 200,000
Totalexpenditures&otheruses 7,312,312$8,886,431$6,552,289$6,760,000$6,702,507$(57,493)$
Revenueover/(under)expenditures (656,430)$(1,522,586)$436,056$-$416,495$416,495
70
STATISTICAL SECTION
STATISTICALSECTION
TheStatisticalSectionisincludedtoprovidedetaileddataonthephysical,economic,socialandpoliticalcharacteristicsofthereporting
government.Itisintendedtoprovidetheuserwithabroaderandmorecompleteunderstandingofthegovernmentanditsfinancialaffairsthanis
possiblefromthebasicfinancialstatementsandsupplementaryinformationincludedintheFinancialSection.
Page
Financialtrends
NetPositionbyComponent-LastTenFiscalYears 71
ChangesinNetPosition-LastTenFiscalyears 72
FundBalancesofGovernmentalFunds-LastTenFiscalYears 74
ChangesinFundBalancesofGovernmentalFunds-LastTenFiscalYears 75
GovernmentalFundsTaxRevenuesbySource-LastTenFiscalYears(modifiedaccrualbasis)76
GeneralGovernmentalTaxRevenuesbySource-Last10FiscalYears(accrualbasis)77
Revenuecapacity
TaxCapacityValueandEstimatedMarketValueofTaxableProperty-LastTenFiscalYears 78
PropertyTaxRates-AllDirectandOverlappingGovernments-LastTenFiscalYears 79
PropertyTaxLeviesandCollections-LastTenFiscalYears 80
PrincipalPropertyTaxpayers-CurrentYearandNineYearsAgo 81
WaterSoldbyCustomerType-LastTenFiscalYears 82
WaterandSewageUtilityRates-LastTenFiscalYears 83
Debtcapacity
RatiosofOutstandingDebtbyType-LastTenFiscalYears 84
RatiosofNetGeneralObligationBondedDebtOutstanding-LastTenFiscalYears 85
LegalDebtMarginInformation-LastTenFiscalYears 86
ComputationofDirectandOverlappingDebt 87
ScheduleofRevenueBondCoverage-LastTwoFiscalYears 88
Economicanddemographicinformation
Demographic&EconomicStatistics-LastTenFiscalYears 89
PrincipalEmployers-CurrentYearandNineYearsAgo 90
Operatinginformation
CityGovernmentEmployeesbyFunction/Program-LastTenFiscalYears 91
OperatingIndicatorsbyFunction-LastTenFiscalYears 92
CapitalAssetsStatisticsbyFunction-LastTenFiscalYears 94
CITYOFMONTICELLO
NetPositionbyComponent
LastTenFiscalYears
(accrualbasisofaccounting)
2005 2006 2007 2008 2009 2010 2011 2012 2013 2014
Governmentalactivities
Netinvestmentin
capitalassets 7,009,622$7,009,622$12,476,536$27,584,763$33,712,370$31,901,676$38,242,040$40,525,009$44,268,757$48,253,810$
Restricted --31,517,792 22,074,427 17,688,193 18,337,866 16,894,936 13,061,044 18,118,070 10,453,449
Unrestricted 45,136,460 56,949,749 24,543,501 28,445,230 28,183,161 26,876,421 24,758,269 25,119,107 13,487,299 14,792,521
Totalgovernmentalnetposition 52,146,082$63,959,371$68,537,829$78,104,420$79,583,724$77,115,963$79,895,245$78,705,160$75,874,126$73,499,780$
Business-typeactivities
Netinvestmentin
capitalassets 35,077,391$35,749,380$33,971,151$31,375,890$29,910,696$28,556,355$25,031,043$23,698,091$20,496,832$42,117,264$
Restricted ---19,350 19,350 19,350 19,350 19,350 --
Unrestricted 4,740,491 5,437,867 6,441,470 4,529,830 2,846,018 6,363,148 6,901,353 7,642,046 6,463,638 9,121,952
Totalbusiness-typenetposition 39,817,882$41,187,247$40,412,621$35,925,070$32,776,064$34,938,853$31,951,746$31,359,487$26,960,470$51,239,216$
Primarygovernment
Netinvestmentin
capitalassets 42,087,013$42,759,002$46,447,687$58,960,653$63,623,066$60,458,031$63,273,083$64,223,100$64,765,589$90,371,074$
Restricted --31,517,792 22,093,777 17,707,543 18,357,216 16,914,286 13,080,394 18,118,070 10,453,449
Unrestricted 49,876,951 62,387,616 30,984,971 32,975,060 31,029,179 33,239,569 31,659,622 32,761,153 19,950,937 23,914,473
Totalprimarygovernment
netposition 91,963,964$105,146,618$108,950,450$114,029,490$112,359,788$112,054,816$111,846,991$110,064,647$102,834,596$124,738,996$
Note:Infiscalyears2013and2012,thecityhadachangeinaccountingprinciple,achangeinfundstructure,andpriorperiod
adjustments.Prioryearswerenotadjustedtoreflectthesechanges.
$-
$20
$40
$60
$80
$100
2005 2006 2007 2008 2009 2010 2011 2012 2013 2014
Millions
PrimaryGovernmentNetPosition
Netinvestmentin
capitalassets
Restrictednet
position
Unrestrictednet
position
71
CITYOFMONTICELLO
ChangesinNetPosition
LastTenFiscalYears
(accrualbasisofaccounting)
Expenses 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014
Governmentalactivities:
Generalgovernment 1,907,352 3,639,497 1,844,320 1,572,389 1,780,972 2,065,463 2,111,710 2,103,737 1,623,727 1,488,243
Publicsafety 1,551,098 2,856,573 1,693,116 1,792,351 2,849,272 1,766,712 1,788,595 1,819,378 1,884,981 1,880,193
Publicworks 5,990,719 5,318,865 4,559,460 4,634,167 3,827,501 3,579,291 4,838,544 5,045,729 5,163,461 5,223,345
Sanitation 492,446 474,045 509,208 514,208 547,160 534,903 495,693 500,037 487,268 517,956
Transit 10,000
Recreationandculture 2,244,446 2,766,014 2,703,227 2,729,950 2,855,682 2,636,088 1,753,197 2,719,730 2,875,260 2,882,127
Economicdevelopment 657,258 2,061,331 769,584 510,126 842,819 2,647,687 1,199,936 803,594 1,005,813 1,084,620
Interestandfiscalcharges 1,733,933 2,378,871 2,193,840 2,136,872 1,673,431 1,464,012 1,248,716 1,298,869 235,265 649,854
Totalgovernmentalactivitiesexpenses 14,577,252 19,495,196 14,272,755 13,890,063 14,376,837 14,694,156 13,436,391 14,291,074 13,275,775 13,736,338
Business-typeactivities
Waterutility 939,449 913,638 973,375 975,846 1,018,098 936,718 1,167,572 1,118,789 1,009,600 1,084,882
Sewageutility 2,017,993 2,095,124 2,000,610 2,085,485 2,074,447 2,495,976 2,340,555 2,480,657 2,466,660 2,762,357
Liquor 3,172,741 3,285,082 644,857 620,743 669,940 637,574 658,999 662,002 689,559 692,976
Fiberoptics ––84,594 1,590,237 2,792,813 3,815,377 5,702,480 5,228,428 5,240,871 2,919,170
Deputyregistrar ––––––––293,531 300,236
Totalbusiness-typeactivitiesexpenses 6,130,183 6,293,844 3,703,436 5,272,311 6,555,298 7,885,645 9,869,606 9,489,876 9,700,221 7,759,621
Totalprimarygovernmentexpenses 20,707,435$25,789,040$17,976,191$19,162,374$20,932,135$22,579,801$23,305,997$23,780,950$22,975,996$21,495,959$
ProgramRevenues
Governmentalactivities:
Chargesforservices:
Generalgovernment 683,599 974,186 695,117 523,228 443,976 491,304 521,182 619,992 147,244 180,145
Publicsafety 912,300 1,030,842 93,138 99,812 155,036 96,293 202,237 179,540 163,366 164,616
Publicworks 2,692,336 1,186,670 1,994,067 1,544,140 744,241 1,556,098 508,077 383,066 544,404 371,671
Sanitation 863,857 129,057 --167,119 165,387 52,304 53,077 16,653 48,385
Transit -
Recreationandculture 159,252 1,048,551 1,044,699 1,084,622 1,139,199 1,153,113 1,240,970 1,150,273 1,307,149 1,331,581
Economicdevelopment 146,715 115,616 6,768 15,875 155,769 -----
Operatinggrantsandcontributions 381,420 281,531 160,147 159,192 269,492 424,845 253,127 252,784 293,710 295,828
Capitalgrantsandcontributions 2,135,687 12,153,185 3,616,870 948,340 2,067,509 4,124,271 2,083,511 1,841,915 1,079,738 1,774,628
Totalgovernmentalactivities
programrevenues 7,975,166 16,919,638 7,610,806 4,375,209 5,142,341 8,011,311 4,861,408 4,480,647 3,552,264 4,166,854
Business-typeactivities:
Chargesforservices:
Waterutility 701,346 742,146 867,873 973,776 1,019,390 828,635 1,078,133 1,304,923 1,214,570 1,117,226
Sewageutility 969,996 1,043,208 1,196,983 1,307,064 1,371,776 1,470,537 1,712,058 1,850,919 1,981,491 2,081,660
Liquor 3,540,572 3,619,236 1,002,933 1,059,479 1,043,256 1,174,767 1,151,171 1,214,745 1,318,276 1,289,369
Fiberoptics –––––456,820 1,610,258 1,747,587 1,606,720 1,761,978
Deputyregistrar ––––––––456,285 497,798
Operatinggrantsandcontributions ––––––––––
Capitalgrantsandcontributions 4,310,691 2,188,675 482,412 106,787 –––––488,628
Totalbusiness-typeactivities
programrevenues 9,522,605 7,593,265 3,550,201 3,447,106 3,434,422 3,930,759 5,551,620 6,118,174 6,577,342 7,236,659
Totalprimarygovernment
programrevenues 17,497,771$24,512,903$11,161,007$7,822,315$8,576,763$11,942,070$10,413,028$10,598,821$10,129,606$11,403,513$
(continued)
72
CITYOFMONTICELLO
ChangesinNetPosition
LastTenFiscalYears
(accrualbasisofaccounting)
2005 2006 2007 2008 2009 2010 2011 2012 2013 2014
Net(expense)/revenue:
Governmentalactivities (6,602,086)$(2,575,558)$(6,661,949)$(9,514,854)$(9,234,496)$(6,682,845)$(8,574,983)$(9,810,427)$(9,723,511)$(9,569,484)$
Business-typeactivities 3,392,422 1,299,421 (153,235)(1,825,205)(3,120,876)(3,954,886)(4,317,986)(3,371,702)(3,122,879)(522,962)
Totalprimarygovernmentnetexpense (3,209,664)$(1,276,137)$(6,815,184)$(11,340,059)$(12,355,372)$(10,637,731)$(12,892,969)$(13,182,129)$(12,846,390)$(10,092,446)$
GeneralRevenuesandOtherChangesinNetPosition
Governmentalactivities:
Taxes
Propertytaxes 7,476,106$7,253,560$7,242,838$8,450,599$8,821,568$8,260,705$8,451,149$8,746,348$8,927,164$9,219,737$
Franchisetaxes ––––48,517 371,258 341,362 339,518 320,640 357,409
Unrestrictedgrantsandcontributions 200,000 130,000 288,940 158,340 406,735 37,665 19,359 38,618 65,228 27,502
Investmentearnings 985,497 2,093,877 2,170,025 1,461,658 770,178 859,583 1,467,780 767,722 (189,128)784,347
Other ––––41,173 ––11,575 3,885 217,643
Gainonsaleofcapitalassets 2,799,703 4,619,629 528,193 233,326 366,961 442,091 354,501 540,272 489,782 -
Transfers 250,000 250,000 997,929 371,245 251,133 (5,774,257)713,655 (2,420,489)278,500 (3,411,500)
Totalgovernmentalactivities 11,711,306 14,347,066 11,227,925 10,675,168 10,706,265 4,197,045 11,347,806 8,023,564 9,896,071 7,195,138
Business-typeactivities
Investmentearnings 89,987 334,623 326,356 547,703 188,178 236,131 495,484 264,589 (117,175)399,757
Miscellaneous (25,576)27,100 62,664 136,356 42,360 125,326 1,555,509 100,687 65,468 –
Gainonextinguishmentofdebt 20,990,451
Transfers (250,000)(250,000)(997,929)(371,245)(251,133)5,774,257 (713,655)2,420,489 (278,500)3,411,500
Totalbusiness-typeactivities (185,589)111,723 (608,909)312,814 (20,595)6,135,714 1,337,338 2,785,765 (330,207)24,801,708
Totalprimarygovernment 11,525,717$14,458,789$10,619,016$10,987,982$10,685,670$10,332,759$12,685,144$10,809,329$9,565,864$31,996,846$
ChangesinNetPosition
Governmentalactivities 5,109,220$11,771,508$4,565,976$1,160,314$1,471,769$(2,485,800)$2,772,823$(1,786,863)$172,560$(2,374,346)$
Business-typeactivities 3,206,833 1,411,144 (762,144)(1,512,391)(3,141,471)2,180,828 (2,980,648)(585,937)(3,453,086)24,278,746
Totalprimarygovernment 8,316,053$13,182,652$3,803,832$(352,077)$(1,669,702)$(304,972)$(207,825)$(2,372,800)$(3,280,526)$21,904,400$
Note1:Thecitymadeafundstructurechangeinfiscalyear2013.Prioryeardatahasnotbeenchangedtoreflectthischange.
Note2:ThecityimplementedGASBStatementNo.54infiscalyear2011.Prioryeardatahasnotbeenrestatedasaresultofthischange.
73
CITYOFMONTICELLO
FundBalancesofGovernmentalFunds
LastTenFiscalYears
(modifiedaccrualbasisofaccounting)
2005 2006 2007 2008 2009 2010 2011 2012 2013 2014
GeneralFund
Reserved 388,527$405,819$430,294$359,303$392,541$336,286$-$-$-$-$
Unreserved 4,735,864 5,014,094 5,131,193 5,819,249 4,705,092 4,644,748 ----
Nonspendable ------386,616 342,380 258,100 126,327
Restricted ----------
Committed ------3,374,200 ---
Assigned ----------
Unassigned ------649,821 3,136,127 3,656,463 4,204,731
Totalgeneralfund 5,124,391$5,419,913$5,561,487$6,178,552$5,097,633$4,981,034$4,410,637$3,478,507$3,914,563$4,331,058$
Allothergovernmentalfunds
Reserved 14,754,923$17,912,418$27,072,957$16,663,801$10,280,326$7,884,431$-$-$-$-$
Unreserved
Specialrevenuefunds 18,425,893 14,946,443 7,554,334 14,191,473 18,451,828 18,324,689 ----
Capitalprojectsfunds 9,261,188 (1,805,372)(630,214)(1,839,478)(2,124,391)(1,532,220)----
Nonspendable ------1,299,057 197,123 1,822,926 1,815,087
Restricted ------22,140,662 21,480,938 10,928,985 10,453,449
Committed ------2,662,124 ---
Assigned ------9,138,626 8,655,488 6,485,727 7,321,744
Unassigned
Specialrevenuefunds ------(141,890)---
Capitalprojectsfunds ------(1,435,666)---
Totalallother
governmentalfunds 42,442,004$31,053,489$33,997,077$29,015,796$26,607,763$24,676,900$33,662,913$30,333,549$19,237,638$19,590,280$
Note1:ThemadeafundstructurechangefortheperiodendingDecember31,2013.Prioryeardatahasnot
beenrestatedasaresultofthischange.
Note2:ThecityimplementedGASB54forthefinancialreportingperiodendingDecember31,2011.Prioryear
datahasnotbeenrestatedasaresultofthischange.
74
CITYOFMONTICELLO
ChangesinFundBalancesofGovernmentalFunds
LastTenFiscalYears
(modifiedaccrualbasisofaccounting)
2005 2006 2007 2008 2009 2010 2011 2012 2013 2014
Revenues
Propertytaxes 6,722,393$6,461,748$6,190,599$7,233,582$7,502,844$7,319,154$7,294,635$8,234,086$7,985,695$8,407,627$
Taxincrements 753,713 791,812 824,714 1,172,447 1,193,021 1,155,386 1,044,791 1,024,134 965,935 826,363
Franchisetaxes ––––48,517 371,258 341,362 339,518 320,640 357,409
Specialassessments 3,341,537 2,006,519 3,112,374 2,566,932 2,462,673 1,465,264 1,856,134 1,902,871 2,065,944 1,912,932
Licensesandpermits 956,300 758,718 627,751 917,539 266,797 217,184 249,999 275,699 331,711 378,810
Intergovernmental 373,929 937,076 1,764,633 550,283 1,688,895 1,620,771 1,434,420 540,475 1,264,781 732,366
Chargesforservices 4,014,956 2,796,871 2,888,981 2,290,091 2,518,548 2,890,006 2,239,584 2,076,834 1,846,919 1,722,974
Finesandforfeitures 4,000 1,750 5,027 2,216 1,220 205 85 14,338 1,725 1,900
Investmentearnings 985,497 2,093,877 2,170,025 1,461,658 770,178 859,583 1,467,780 767,722 (183,242)738,956
Otherrevenues 3,165,372 4,564,660 372,502 197,988 435,186 643,873 603,019 753,832 700,776 413,113
Totalrevenues 20,317,697 20,413,031 17,956,606 16,392,736 16,887,879 16,542,684 16,531,809 15,929,509 15,300,884 15,492,450
Expenditures
Generalgovernment 1,544,446 1,743,716 1,899,097 1,579,164 1,634,395 1,997,458 2,039,270 2,023,674 1,576,653 1,450,930
Publicsafety 1,666,869 2,760,090 1,603,331 1,736,962 2,738,768 1,684,296 1,728,409 1,735,579 1,805,434 1,845,073
Publicworks 4,635,519 3,594,844 1,951,712 2,380,993 2,074,811 1,562,155 1,675,222 1,703,849 1,707,576 1,793,162
Sanitation 492,446 474,045 509,208 514,208 547,160 534,903 495,693 500,037 505,996 517,956
Transit 10,000
Cultureandrecreation 2,361,302 2,271,216 2,214,108 2,220,368 2,355,669 2,164,534 2,419,369 2,272,595 2,472,987 2,386,832
Economicdevelopment 637,777 2,056,055 772,852 525,783 842,819 2,647,687 1,198,449 800,540 1,011,961 1,084,620
Capitaloutlay 12,137,740 13,074,965 6,430,421 3,522,196 1,946,153 4,138,459 4,067,251 2,829,049 1,357,254 2,220,883
Debtservice
Principal 1,911,126 3,407,655 3,388,382 5,037,028 6,749,293 5,001,000 4,860,000 5,174,500 5,290,750 5,411,000
Interestandfiscalcharges 1,426,367 2,373,438 2,256,311 2,192,063 1,801,392 1,553,661 1,383,095 1,290,430 930,982 658,983
Totalexpenditures 26,813,592 31,756,024 21,025,422 19,708,765 20,690,460 21,284,153 19,866,758 18,330,253 16,659,593 17,379,439
Excessofrevenues
over(under)expenditures (6,495,895)(11,342,993)(3,068,816)(3,316,029)(3,802,581)(4,741,469)(3,334,949)(2,400,744)(1,358,709)(1,886,989)
Otherfinancingsources(uses)
Transfersin 4,128,010 8,181,372 5,202,051 16,818,090 10,172,878 4,687,126 5,710,819 9,990,120 6,906,770 4,914,385
Transfersout (3,878,010)(7,931,372)(4,204,122)(16,446,845)(9,921,745)(4,431,158)(4,997,164)(10,732,901)(7,158,933)(8,325,885)
Debtissued 25,150,000 –5,137,903 15,450,000 –3,255,000 10,735,000 ––6,080,000
Premium(discount)ondebtissued 761,396 –83,710 ––(19,530)301,910 ––(12,374)
Refundedbondsredeemed –––(15,908,564)–(865,000)––(10,690,000)–
Refundingdeferredamortized(loss)–––(384,432)––––––
Saleoflandheldforresale ––(103,084)74,650 ––––––
Saleofcapitalassets ––37,520 2,575 62,496 67,569 –11,575 12,428 –
Totalotherfinancingsources(uses)26,161,396 250,000 6,153,978 (394,526)313,629 2,694,007 11,750,565 (731,206)(10,929,735)2,656,126
Netchangeinfundbalances 19,665,501$(11,092,993)$3,085,162$(3,710,555)$(3,488,952)$(2,047,462)$8,415,616$(3,131,950)$(12,288,444)$769,137$
Debtserviceaspercentage
ofnoncapitalexpenditures 22.7%30.9%38.7%44.7%45.6%38.2%39.5%41.7%40.7%40.0%
Note:ThecitymadeafundstructurechangefortheperiodendingDecember31,2013.Prioryeardatahasnotbeenmodifiedtoreflectthischange.
75
CITYOFMONTICELLO
GovernmentalFundsTaxRevenuesbySource
LastTenFiscalYears
(modifiedaccrualbasisofaccounting)
Property Tax Franchise
Year Tax Increment Tax Total
2005 6,722,393$753,716$-$7,476,109$
2006 6,461,748 791,812 -7,253,560
2007 6,190,599 824,714 -7,015,313
2008 7,233,582 1,172,447 -8,406,029
2009 7,502,844 1,193,021 48,517 8,744,382
2010 7,319,154 1,155,386 371,258 8,845,798
2011 7,294,635 1,044,791 341,362 8,680,788
2012 8,234,086 1,024,134 339,518 9,597,738
2013 7,985,695 965,935 320,640 9,272,270
2014 8,407,627 826,363 357,409 9,591,399
Change
2005-2014 25.1%9.6%---28.3%
Source:FinanceDepartment
$-
$1
$2
$3
$4
$5
$6
$7
$8
$9
2005200620072008200920102011201220132014
Millions
TaxRevenuesbySource
PropertyTax
TaxIncrement
FranchiseTax
76
CITYOFMONTICELLO
GeneralGovernmentalTaxRevenuesbySource
LastTenFiscalYears
(accrualbasisofaccounting)
Property Franchise
Year Tax Tax Total
2005 7,476,106$-$7,476,106$
2006 7,253,560 -7,253,560
2007 7,242,838 -7,242,838
2008 8,450,599 -8,450,599
2009 8,821,568 48,517 8,870,085
2010 8,260,705 371,258 8,631,963
2011 8,451,149 341,362 8,792,511
2012 8,746,348 339,518 9,085,866
2013 8,927,164 320,640 9,247,804
2014 9,219,737 357,409 9,577,146
Change
2005-2014 23.3%---28.1%
Source:FinanceDepartment
$-
$2
$4
$6
$8
$10
2005200620072008200920102011201220132014
Millions
TaxRevenuesbySource
PropertyTax
FranchiseTax
77
CITYOFMONTICELLO
TaxCapacityValueandEstimatedMarketValueofTaxableProperty
LastTenFiscalYears
Total NetTax
TaxableNet Capacityasa
Residential%of Commercial%of Personal%of Ag/Misc %of TaxCapacity %of TotalDirect Total Percentageof
Year Property Total Property Total Property Total Property Total Value*Total TaxRate MarketValue MarketValue
2005 5,182,370$41.5%7,085,105$56.7%160,594$1.3%70,843$0.6%12,498,912$100.0%58.651 882,038,300$1.4%
2006 5,824,238 41.8%7,871,132 56.5%170,446 1.2%69,626 0.5%13,935,442 100.0%51.028 993,647,300 1.4%
2007 6,929,517 42.8%8,913,821 55.0%177,822 1.1%183,695 1.1%16,204,855 100.0%42.458 1,243,461,100 1.3%
2008 7,443,331 43.0%9,455,666 54.6%176,289 1.0%236,789 1.4%17,312,075 100.0%46.942 1,282,400,700 1.3%
2009 7,506,973 41.8%9,966,873 55.5%174,223 1.0%299,191 1.7%17,947,260 100.0%46.191 1,245,407,600 1.4%
2010 6,165,704 35.4%10,793,836 62.0%189,563 1.1%251,177 1.4%17,400,280 100.0%45.822 1,188,222,100 1.5%
2011 5,307,260 31.9%10,897,898 65.5%194,825 1.2%229,016 1.4%16,628,999 100.0%46.729 1,106,541,400 1.5%
2012 4,611,403 23.6%14,538,165 74.3%235,633 1.2%194,492 1.0%19,579,693 100.0%49.773 1,219,719,700 1.6%
2013 4,824,117 25.4%13,793,916 72.5%239,129 1.3%164,609 0.9%19,021,771 100.0%42.262 1,201,075,800 1.6%
2014 5,408,138 21.9%18,818,097 76.4%235,713 1.0%184,750 0.7%24,646,698 100.0%44.709 1,513,570,400 1.6%
Note1:Thefiscalyearisforthevaluesintheyearleviedfortaxescollectibleinthefollowingyear.
Note2:*Taxexemptpropertyvaluesandtaxincrementvaluesarenotincludedintotalnettaxcapacityvalue.
Source:WrightCountyCertificateofTaxesandTaxableProperties.
RealProperty
$-
$5
$10
$15
$20
$25
2005 2006 2007 2008 2009 2010 2011 2012 2013 2014
Millions
TotalTaxableNetTaxCapacityValue
(ExcludesPersonalandAg/MiscProperty)
Residential
Commercial
78
CITYOFMONTICELLO
PropertyTaxRates-AllDirectandOverlappingGovernments
LastTenFiscalYears
Monticello Total(1)
City Wright School Special Directand
Year ofMonticello County District#882 Districts Overlapping
2005 58.65 34.41 26.38 2.67 122.11
2006 51.03 32.57 24.37 2.33 110.30
2007 42.46 30.71 23.15 2.95 99.27
2008 46.94 31.65 25.25 2.52 106.36
2009 46.19 32.57 26.08 2.07 106.91
2010 45.82 35.82 24.95 1.75 108.34
2011 46.73 39.31 27.03 1.50 114.57
2012 49.77 43.45 28.26 1.24 122.72
2013 42.26 44.29 26.23 0.61 113.39
2014 44.71 43.45 28.27 ---116.43
Note1:
Source:WrightCounty
OverlappingTaxingDistricts
Informationreflectstotaltaxratesleviedbyeachentity.Taxratesareexpressedintermsof“nettaxcapacity.”A
property’staxcapacityisdeterminedbymultiplyingitstaxablemarketvaluebyastatedeterminedclassrate.Class
ratesvarybypropertytypeandchangeperiodicallybasedonstatelegislation.Componentsofthedirectratearenot
readilyavailable.
0
20
40
60
80
2005200620072008200920102011201220132014
Rate
%
PropertyTaxRates
Forthethreehighesttaxingauthorities
Wright
District
#882
City
79
CITYOFMONTICELLO
PropertyTaxLeviesandCollections
LastTenFiscalYears
PROPERTYTAXES
TotalTax Collectionsin Abatements
Fiscal Levyfor Tax Net %of Subsequent %of and %of
Year FiscalYear Credits Levy Amount NetLevy Years Amount NetLevy Adjustments Amount NetLevy
2005 6,957,776$293,845$6,663,931$6,577,121$98.7%87,264$6,664,385$100.0%1,055$601$0.0%
2006 6,750,132 283,978 6,466,154 6,349,118 98.2%107,270 6,456,388 99.8%(8,603)1,163 0.0%
2007 6,499,914 261,362 6,238,552 6,044,463 96.9%170,324 6,214,787 99.6%(22,051)1,714 0.0%
2008 7,600,189 267,056 7,333,133 7,118,136 97.1%172,598 7,290,734 99.4%(39,224)3,175 0.0%
2009 7,750,119 263,587 7,486,532 7,237,730 96.7%210,210 7,447,940 99.5%(32,099)6,493 0.1%
2010 7,648,269 278,930 7,369,339 7,155,141 97.1%179,669 7,334,810 99.5%(25,704)8,825 0.1%
2011 7,677,351 293,075 7,384,276 7,178,807 97.2%175,054 7,353,861 99.6%(19,074)11,341 0.2%
2012 7,850,042 -7,850,042 7,759,174 98.8%24,592 7,783,766 99.2%(52,496)13,780 0.2%
2013 7,900,724 -7,900,724 7,827,356 99.1%30,381 7,857,737 99.5%(25,642)17,345 0.2%
2014 8,151,086 -8,151,086 8,108,286 99.5%--8,108,286 99.5%(880)41,920 0.5%
TAXINCREMENTS
TotalTax Collectionsin Abatements
Fiscal Levyfor Tax Net %of Subsequent %of and %of
Year FiscalYear Credits Levy Amount NetLevy Years Amount NetLevy Adjustments Amount NetLevy
2005 736,301$-$736,301$732,534$99.5%3,767$736,301$100.0%-$-$0.0%
2006 779,400 -779,400 777,297 99.7%443 777,740 99.8%(1,660)-0.0%
2007 889,262 -889,262 836,397 94.1%1,222 837,619 94.2%(51,643)-0.0%
2008 1,191,177 -1,191,177 1,184,402 99.4%4,874 1,189,276 99.8%(1,901)-0.0%
2009 1,247,605 -1,247,605 1,205,582 96.6%39,200 1,244,782 99.8%(886)1,937 0.2%
2010 1,193,383 -1,193,383 1,144,243 95.9%36,309 1,180,552 98.9%(11,059)1,772 0.1%
2011 1,071,686 -1,071,686 1,044,309 97.4%25,742 1,070,051 99.8%-1,635 0.2%
2012 955,039 -955,039 953,400 99.8%-953,400 99.8%-1,639 0.2%
2013 971,745 -971,745 970,071 99.8%-970,071 99.8%(470)1,204 0.1%
2014 869,425 -869,425 869,339 100.0%--869,339 100.0%-86 0.0%
Source:
YearoftheNetLevy toDate TotalUncollected
WrightCounty
Collectedwithinthe TotalCollections
YearoftheNetLevy toDate TotalUncollected
Collectedwithinthe TotalCollections
80
CITYOFMONTICELLO
PrincipalPropertyTaxpayers
CurrentYearandNineYearsAgo
Percentageof Percentageof
TaxableNetTax TotalNetTax Market TaxableNetTax TotalNetTax
Taxpayer MarketValue(1)CapacityValue Rank CapacityValue Value CapacityValue Rank CapacityValue
XcelEnergy(NorthernStates)464,619,100$9,285,841$1 48.8%241,173,400$4,815,613 1 38.5%
WalmartRealEstateBusTrust 12,542,500 250,100 2 1.3%
TargetCorporation 10,120,400 201,658 3 1.1%
NewRiverMedicalCenter 7,544,100 150,882 4 0.8%
HomeDepotUSA,Inc.7,000,000 139,250 5 0.7%
MullerFamilyTheatres 5,511,400 109,097 6 0.6%6,549,800 129,496 2 1.0%
AXTCRetail,LP 5,154,900 101,598 7 0.5%
BBFProperties,Inc.3,977,300 78,796 8 0.4%3,547,700 93,360 5 0.7%
Tapper’sHoldings,LLC 3,956,800 77,636 9 0.4%
Minnegasco,Inc.3,874,500 77,490 10 0.4%2,892,500 57,850 10 0.5%
PetersonHoldings,LLC 4,743,000 93,360 3 0.7%
JacobHoldingsofMonticello,LLC 3,587,200 70,244 4 0.6%
GouldBrothersChev,LLP 3,522,400 69,698 6 0.6%
MonticelloWashingtonAssn 3,500,000 69,650 7 0.6%
Tomann,Terrance&MaryFamilyLTD 3,458,400 68,418 8 0.5%
WrightCountyProducts 3,061,300 60,476 9 0.5%
524,301,000$10,472,348$55.1%276,035,700$5,528,165 44.2%
Note1:Themarketvalueandtaxablenettaxcapacityvalueisfortaxesleviedin2013,whicharepayablein2014.
Source:WrightCountyCertificateofTaxesandTaxableProperties
2014 2005
81
CITYOFMONTICELLO
WaterSoldbyCustomerType(gallons)
LastTenFiscalYears
Total
%of %of %of %of Water %of
Year Residential Total Commercial Total Industrial Total GovernmentTotal Sold Total
2005 344,197,058 64.7%74,789,130 14.1%57,739,095 10.9%54,964,838 10.3%531,690,121 100.0%
2006 419,892,135 69.5%82,989,503 13.7%52,305,000 8.7%48,622,223 8.1%603,808,861 100.0%
2007 467,672,488 71.3%91,517,828 14.0%49,035,750 7.5%47,703,225 7.3%655,929,291 100.0%
2008 409,879,658 69.0%84,234,653 14.2%47,790,000 8.0%52,154,498 8.8%594,058,809 100.0%
2009 430,263,791 75.0%69,825,753 12.2%38,713,057 6.8%34,601,796 6.0%573,404,397 100.0%
2010 376,687,840 67.1%90,001,208 16.0%47,225,176 8.4%47,227,405 8.4%561,141,629 100.0%
2011 348,580,072 66.0%84,194,027 15.9%50,971,196 9.7%44,219,755 8.4%527,965,050 100.0%
2012 426,358,402 69.0%97,281,410 15.7%46,654,712 7.5%47,866,428 7.7%618,160,952 100.0%
2013 383,079,041 68.8%85,819,687 15.4%45,954,136 8.2%42,206,803 7.6%557,059,667 100.0%
2014 328,835,772 68.2%79,370,922 16.5%38,308,124 7.9%35,566,000 7.4%482,080,818 100.0%
Source:CityofMonticelloutilitybillingdepartment
0
100
200
300
400
500
600
700
2005 2006 2007 2008 2009 2010 2011 2012 2013 2014
Millions
WaterSoldbyCustomerType(gallons)
Government
Industrial
Commercial
Residential
82
CITYOFMONTICELLO
WaterandSewageUtilityRates
LastTenFiscalYears
RateTier1 RateTier2 RateTier3 RateTier4 RateTier1 RateTier2 RateTier3 RateTier4 RateTier1 RateTier1
BaseRate 501–4,000 4,001–13,369 Over13,369 BaseRate 501–4,000 4,001–13,369 Over13,369 BaseRate Over500
Fiscal First500 per100 per100 per100 First500 per100 per100 per100 First500 per100
Year CubicFeet CubicFeet CubicFeet CubicFeet CubicFeet CubicFeet CubicFeet CubicFeet CubicFeet CubicFeet
2005 8.58$0.52$0.52$N/A 8.58$0.52$N/A N/A 10.00$1.80
2006 8.92 0.54 0.54 N/A 8.92 0.54 N/A N/A 10.40 1.87
2007 10.26 0.62 0.71 N/A 10.26 0.62 N/A N/A 11.96 2.15
2008 11.91 0.74 0.84 N/A 11.91 0.74 N/A N/A 13.75 2.47
2009 12.40 0.78 0.88 N/A 12.40 0.78 N/A N/A 14.45 2.60
2010 13.00 0.85 0.95 N/A 14.75 0.95 N/A N/A 15.15 2.75
2011 14.30 0.95 1.10 1.20 14.30 0.95 1.10 1.20 16.75 3.00
2012 15.44 1.03 1.19 1.30 15.44 1.03 1.19 1.30 18.76 3.36
2013 17.00 1.13 1.31 1.43 17.00 1.13 1.31 1.43 20.65 3.70
2014 17.00 1.13 1.31 1.43 17.00 1.13 1.31 1.43 20.65 3.70
N/A–NotAvailable
Source:CityofMonticelloutilitybillingdepartment
Water Sewage
Residential Commercial
83
CITYOFMONTICELLO
RatiosofOutstandingDebtbyType
LastTenFiscalYears
2005 2006 2007 2008 2009 2010 2011 2012 2013 2014
Governmentalactivities
Generalobligation:
Specialassessmentbonds 31,065,000$30,255,000$28,415,000$24,075,000$21,535,000$21,320,000$29,490,000$26,625,000$13,010,000$10,010,000$
Otherbonds 2,420,000 2,210,000 7,132,903 15,737,903 12,822,903 11,531,903 10,196,903 8,877,403 7,506,653 12,680,653
Taxincrementbonds 970,000 810,000 680,000 575,000 470,000 -----
Netpremium(discount)668,448 639,119 691,438 651,542 631,516 572,079 818,803 744,748 265,320 67,350
TotalGObonds 35,123,448 33,914,119 36,919,341 41,039,445 35,459,419 33,423,982 40,505,706 36,247,151 20,781,973 22,758,003
Notes 10,835,699 10,188,973 9,515,592 -------
Certificatesofindebtedness --------445,000 385,000
Totalgeneralobligationdebt 45,959,147 44,103,092 46,434,933 41,039,445 35,459,419 33,423,982 40,505,706 36,247,151 21,226,973 23,143,003
Non-generalobligation:
Revenuebonds 6,830,864 6,579,419 6,157,974 5,742,098 5,209,011 4,612,454 3,690,898 2,739,341 1,782,784 985,000
Contractfordeed 2,085,222 764,293 664,293 564,293 ------
Totalgovernmentalactivites 54,875,233$51,446,804$53,257,200$47,345,836$40,668,430$38,036,436$44,196,604$38,986,492$23,009,757$24,128,003$
Business-typeactivities
Generalobligation:
Improvementbonds -$-$907,097$907,097$837,097$747,097$654,097$568,597$3,479,347$3,206,347$
Non-generalobligation
Revenuebonds ---26,445,000 26,445,000 26,445,000 26,445,000 26,445,000 26,445,000 -
Netpremium(discount)14,364 (502,517)(479,980)(457,441)(434,904)(412,366)(360,211)31,941
Totalbusiness-typeactivities -$-$921,461$26,849,580$26,802,117$26,734,656$26,664,193$26,601,231$29,564,136$3,238,288$
Totalprimarygovernment 54,875,233$51,446,804$54,178,661$74,195,416$67,470,547$64,771,092$70,860,797$65,587,723$52,573,893$27,366,291$
%ofpersonalincome(1)16.5%14.3%14.3%18.9%17.6%15.8%16.8%13.7%10.5%5.4%
Percapitadebt(1)5,147$4,620$4,815$6,528$5,879$5,632$5,554$5,071$4,055$2,106$
(1)SeetheScheduleofDemographicandEconomicStatistics.
Note:Detailsregardingthecity’soutstandingdebtcanbefoundinthenotestobasicfinancialstatements.
84
CITYOFMONTICELLO
RatiosofNetGeneralObligationBondedDebtOutstanding
LastTenFiscalYears
Percentageof
LessAmounts Estimated
General Available ActualMarket
Obligation inDebt Valueof
Year Bonds(1)ServiceFund Total Property(2)PerCapita(3)
2005 35,123,448$9,162,548$25,960,900$2.94%2,435$
2006 33,914,119 9,170,798 24,743,321 2.49%2,222
2007 36,919,341 18,520,552 18,398,789 1.48%1,635
2008 41,039,445 9,936,332 31,103,113 2.43%2,737
2009 35,459,419 2,346,286 33,113,133 2.66%2,885
2010 33,423,982 2,363,382 31,060,600 2.61%2,701
2011 40,505,706 12,727,140 27,778,566 2.51%2,177
2012 36,247,151 12,952,896 23,294,255 1.91%1,801
2013 21,226,973 2,750,079 18,476,894 1.54%1,425
2014 23,143,003 3,919,070 19,223,933 1.27%1,480
Note1:
Note2:
Note3:SeetheScheduleofDemographicandEconomicStatistics.
Source:Detailsregardingthecity’soutstandingdebtcanbefoundinthenotestobasicfinancialstatements.
Doesnotincluderevenuebonds.
SeetheScheduleofTaxableNetTaxCapacityValueandEstimatedMarketValueofTaxablePropertyforthe
estimatedactualmarketvalue.
85
CITYOFMONTICELLO
LegalDebtMarginInformation
LastTenFiscalYears
2005 2006 2007 2008 2009 2010 2011 2012 2013 2014
17,640,766$19,872,946$23,203,682$37,303,833$38,074,842$35,646,663$33,196,242$36,591,591$35,671,296$45,407,112$
Totalnetdebtapplicable
6,910,000 6,650,000 6,100,000 6,180,000 5,585,000 4,985,000 4,365,000 3,795,000 6,200,000 13,065,653
10,730,766 13,222,946 17,103,682 31,123,833 32,489,842 30,661,663 28,831,242 32,796,591 29,471,296 32,341,459
Totalnetdebtapplicableto
debtlimitasapercentage
ofdebtlimit 39.2%33.5%26.3%16.6%14.7%14.0%13.1%10.4%17.4%28.8%
Marketvalue 1,513,570,400$
Debtlimit(3%ofmarketvalue)45,407,112
Debtapplicabletolimit
Othergeneralobligationbonds 26,282,000
Lessamountsforgeneralobligationbonds
notsubjecttodebtlimit (13,216,347)
Totalnetdebtapplicabletolimit 13,065,653
Legaldebtmargin 32,341,459$
Note:
Legaldebtmargin
LegalDebtMarginCalculationforFiscalYear2014
AllMinnesotamunicipalities(counties,cities,towns,andschooldistricts)aresubjecttostatutory
“netdebt”limitationsundertheprovisionsofMinnesotaStatutes,§475.53.Underthisprovision,
beginningwithissueshavingasettlementdateafterJune30,2008,thestateofMinnesota
increasedthelegaldebtlimitfrom2percentto3percentoftheCity’staxablemarketvalue.
FiscalYear
Legaldebtlimit
todebtlimit
86
CITYOFMONTICELLO
ComputationofDirectandOverlappingDebt
AsofDecember31,2014
Estimated
Net percentage Amount
bondeddebt applicable Overlapping applicableto
Jurisdiction outstanding(1)tocity(2)debt city
DIRECTDEBT:
CityofMonticello 27,267,000$100.0%27,267,000$
OVERLAPPINGDEBT:
I.S.D.882 6,980,000$75.5%5,269,900$
WrightCounty 48,670,000 18.3%8,906,610
TotalOverlappingDebt 14,176,510
Totaldirectandoverlappingdebt 41,443,510$
(1)
(2)
Note:
Source:TheWrightCountyauditorprovidedthedebtoutstandingandestimatedapplicablepercentagesfortheschooldistrictandcounty.
Grossbondeddebtoutstanding.
Thepercentageofoverlappingdebtapplicableisestimatedusingtaxableassessedpropertyvalues.Applicablepercentageswereestimatedby
determiningtheportionofthecounty’staxableassessedvaluethatiswithinthegovernment’sboundariesanddividingitbythecounty’stotaltaxable
assessedvalue.
Overlappinggovernmentsarethosethatcoincide,atleastinpart,withthegeographicboundariesoftheCity.Thisscheduleestimatestheportionofthe
outstandingdebtofthoseoverlappinggovernmentsthatisbornebytheresidentsandbusinessesoftheCity.Thisprocessrecognizesthat,when
consideringthegovernment’sabilitytoissueandrepaylong-termdebt,theentiredebtburdenbornebytheresidentsandbusinessesshouldbetaken
intoaccount.However,thisdoesnotimplythateverytaxpayerisaresidentand,therefore,responsibleforrepayingthedebtofeachoverlapping
government.
87
CITYOFMONTICELLO
ScheduleofRevenueBondCoverage
LastTwoFiscalYears
SewageFund:
NetRevenue
Gross Operating Availablefor
Year Revenues(1)Expenses(2)DebtService Principal Interest Total Coverage
2013 2,006,718$1,476,418$530,300$-$-$-$---
2014 2,081,660 1,570,197 511,463 273,000 91,963 364,963 140.1%
Notes:(1)Totalrevenuesdoesnotincludeinvestmentearnings.
(2)Totaloperatingexpensesexcludingdepreciation.
(3)Thefirstyearofbondpaymentsis2014.Scheduleexcludestelecommunicationsbonds.
Nootherrevenuebondsexistedbefore2013.
Source:FinanceDepartment
DebtServiceRequirements(3)
88
CITYOFMONTICELLO
DemographicandEconomicStatistics
LastTenFiscalYears
Per
Estimated Capita
Unemploy-School Personal Personal
Year Population(1)mentrate(2)Enrollment(3)Income(4)Income(5)
2005 10,662 4.8%4,076 332,313,216$31,168$
2006 11,136 4.4%3,962 358,590,336 32,201
2007 11,253 4.8%3,910 379,102,317 33,689
2008 11,366 5.7%3,921 391,740,556 34,466
2009 11,476 7.9%3,928 384,446,000 33,500
2010 11,501 8.8%3,932 410,252,171 35,671
2011 12,759 7.5%4,011 422,820,501 33,139
2012 12,935 6.2%4,044 477,596,640 37,196
2013 12,964 4.6%4,016 502,964,308 38,797
2014 12,993 3.8%4,089 506,727,000 39,000
Notes/sources:
(1)
(2)
(3)
(4)
(5)
2010U.S.BureauofCensus;2005–2009and2011–2014MinnesotaStateDemographicCenterpopulationestimates.
AnnualaverageunemploymentprovidedbytheMinnesotaDepartmentofEmployment&EconomicDevelopment.
ISDNo.882enrollmentinformationwasobtainedfromthedistrictauditreport.Theenrollmentinformationisbasedontheresident
ADMs(averagedailymembership)served.
Thisestimatedpersonalincomenumberiscalculatedbytakingthepercapitapersonalincomeandmultiplyingitbythecity’s
population.Alsoseenote(3)regardingthepercapitapersonalincomefigures.
PercapitapersonalincomedataisprovidedbytheBureauofEconomicAnalysis.Monticello'sestimatesarebasedonWright
Countyinformation.WrightCounty,whereMonticelloislocated,isthesmallest,relevantstatisticaltrackingarea.
89
CITYOFMONTICELLO
PrincipalEmployers
CurrentYearandNineYearsAgo
Percentageof Percentageof
TotalCity TotalCity
Employer Employees Rank Employment Employees Rank Employment
XcelEnergy(NorthernStates)(1)2,000 1 19.6%431 3 6.8%
ISDNo.882(Monticello)544 2 5.3%478 1 7.6%
CentraCareMedicalCenter(NewRiver)500 3 4.9%454 2 7.2%
CargillKitchenSolutions(SunnyFresh)350 4 3.4%383 4 6.1%
Wal-MartSupercenter 325 5 3.2%
CubFoods 180 6 1.8%140 5 2.2%
UltraMachineCorporation 173 7 1.7%120 8 1.9%
HomeDepot 160 8 1.6%
CityofMonticello 150 9 1.5%130 6 2.1%
HoglundBus/HoglundTruck 88 10 0.9%
PerkinsFamilyRestaurant 122 7 1.9%
K-Mart 100 9 1.6%
MonticelloClinic 96 10 1.5%
4,470 46.9%2,454 39.0%
Note1:Temporaryincreaseisduetouprate.Typicalemploymentisapproximately420employees.
Source:CityofMonticello2014BudgetandtheCityofMonticello2014BondStatement
2014 2005
90
CITYOFMONTICELLO
CityGovernmentEmployeesbyFunction/Program
LastTenFiscalYears
2005 2006 2007 2008 2009 2010 2011 2012 2013 2014
Employeesbyfunction
GeneralFund
Generalgovernment 11.60 11.60 11.60 12.60 12.60 14.00 14.00 14.00 14.00 15.50
Publicworks
Engineering 3.00 3.00 3.00 3.00 3.00 3.00 3.00 3.00 1.00 2.00
Maintenance(1)21.50 21.50 21.50 21.50 19.50 19.50 19.00 19.00 19.00 18.50
Cultureandrecreation
Parks 5.00 5.00 5.00 5.00 5.00 5.00 5.00 5.00 5.00 5.00
Communitydevelopment 2.00 2.00 2.00 2.00 2.00 2.00 2.00 2.00 2.00 2.00
SpecialRevenueFunds
Cultureandrecreation
Communitycenter-FT 8.00 8.00 8.00 8.00 8.00 8.00 8.00 8.00 8.00 7.50
Communitycenter-PT(2)36.50 36.50 36.50 36.50 36.50 36.50 36.50 36.50 36.50 36.50
EnterpriseFunds
Sewer/water 4.00 4.00 4.00 4.00 4.00 4.00 4.00 4.00 4.00 4.00
Deputyregistrar(3)5.00 5.00 5.00 5.00 5.00 5.00 5.00 5.00 5.00 5.00
Liquorstore 10.00 10.00 10.00 10.00 10.00 10.00 10.00 10.00 10.00 11.50
FiberNet ––––6.00 11.00 11.50 11.50 8.50 8.50
Total 106.60 106.60 106.60 107.60 111.60 118.00 118.00 118.00 113.00 116.00
Employeesbyfundtype
GeneralFund 43.10 43.10 43.10 44.10 42.10 43.50 43.00 43.00 41.00 43.00
SpecialRevenueFunds 44.50 44.50 44.50 44.50 44.50 44.50 44.50 44.50 44.50 44.00
EnterpriseFunds 19.00 19.00 19.00 19.00 25.00 30.00 30.50 30.50 27.50 29.00
106.60 106.60 106.60 107.60 111.60 118.00 118.00 118.00 113.00 116.00
FT=Full-time
PT=Part-time
Notes:
(1)Includesseasonalpublicworks
(2)Years2005-2013wereestimated2014levelsasdatawasnotpreviouslytracked.
(3)Priorto2013,thedeputyregistrarfunctionwasincludedwithgeneralgovernment.Prioryearswererestated.
FiscalYear
91
CITYOFMONTICELLO
OperatingIndicatorsbyFunction
LastTenFiscalYears
2005 2006 2007 2008 2009 2010 2011 2012 2013 2014
Function
Fire
Callsforservice 325 266 317 395 375 282 284 203 235 264
Publicworks
Salt(tons)114 164 274 474 475 521 445 300 475 385
Sand(tons)320 319 347 611 615 710 547 335 325 600
Cracksealant(pounds)n/a 11,115 14,200 18,150 15,000 23,580 11,384 1,492 25,739 23,282
Asphaltrepairs(tonsofasphalt)n/a 300 330 200 200 200 253 220 225 190
Cultureandrecreation
Shadetreesplanted ––384 410 425 150 140 220 275 270
Diseasedtreesremoved n/a n/a n/a 868 200 180 113 205 71 46
Trailsmaintained(miles)n/a n/a n/a 17 17 17 17 17 18 18
Communitycenterusers n/a 145,700 168,923 186,429 186,279 183,527 190,014 175,272 211,234 204,134
Programsales n/a 67,021 88,412 129,339 149,829 167,723 168,159 162,227 192,708 184,125
Rentalrevenue n/a 148,533 139,096 136,547 127,612 184,913 154,962 149,733 163,329 150,964
Economicdevelopment
Permitsissued 1,412 1,323 962 3,681 879 495 372 632 659 721
Permitvaluation 68,069,444$45,572,690$45,917,000$45,950,000$11,630,000$9,033,078$5,333,124$12,285,873$15,821,223$19,714,895$
Water
Metersreplaced 81 109 94 111 280 145 215 418 235 598
Curbboxrepairs(watervalves)50 50 50 75 200 200 200 100 100 100
Hydrantrepair 175 175 175 175 175 175 430 300 300 203
Annualresidentialwateruse 344,197,058 419,892,135 467,673,488 409,879,658 430,263,791 376,687,840 348,580,072 426,358,402 383,079,041 328,835,772
Avg.dailyconsumption(MG)1.569 1.817 1.921 1.749 1.806 1.625 1.557 1.798 1.621 1.400
Max.dailygallonspumped(MG)4.889 5.271 5.150 4.728 4.496 3.565 4.116 4.590 4.269 4.031
Sewer
Sewageflow(MG)434 414 423 408 390 398 431 408 392 435
Milesjetted 20 20 20 20 20 25 27 12 20 16
Blocksrodded 3 3 3 3 3 25 10 20 10 20
Milesinspected 20 20 20 20 20 30 30 12 20 20
Library
Itemscheckedout n/a 188,704 209,174 216,599 219,694 248,327 228,886 237,938 263,220 199,182
Programsoffered n/a 232 145 155 170 164 153 149 173 169
Programparticipants n/a 4,196 3,537 3,869 4,100 3,604 3,807 3,761 3,773 3,788
FiscalYear
(continued)
92
CITYOFMONTICELLO
OperatingIndicatorsbyFunction
LastTenFiscalYears (continued)
2005 2006 2007 2008 2009 2010 2011 2012 2013 2014
Operatingindicators(continued)
Fiberoptics
Customers n/a n/a n/a n/a n/a n/a n/a n/a n/a 1,539
Servicesubscriptions n/a n/a n/a n/a n/a n/a n/a n/a n/a 2,755
TVcustomers n/a n/a n/a n/a n/a n/a n/a n/a n/a 813
Phonecustomers n/a n/a n/a n/a n/a n/a n/a n/a n/a 582
Internetcustomers n/a n/a n/a n/a n/a n/a n/a n/a n/a 1,360
Liquorstore
Transactions n/a n/a n/a n/a n/a n/a n/a n/a n/a 229,236
Averageliquorsaletransaction n/a n/a n/a n/a n/a n/a n/a n/a n/a 21.90$
Beersales n/a n/a n/a 2,066,537$2,187,948$2,289,801$2,328,735$2,483,194$2,539,168$2,604,942$
Liquorsales n/a n/a n/a 1,129,351$1,214,817$1,251,448$1,343,109$1,396,521$1,506,776$1,546,118$
Winesales n/a n/a n/a 492,183$575,521$657,562$748,908$812,832$860,817$868,779$
Grossprofitmargin%-beer n/a n/a n/a 20.7%15.7%20.4%19.1%20.3%22.5%21.4%
Grossprofitmargin%-liquor n/a n/a n/a 23.9%26.8%29.6%28.0%29.3%27.7%30.3%
Grossprofitmargin%-wine n/a n/a n/a 17.0%20.2%26.8%28.5%31.4%29.7%30.7%
Deputyregistrar(DMV)
Motorvehicletransactions 46,492 45,225 40,950 45,595 48,000 51,250 54,814 56,211 55,261 60,051
DNRtransactions n/a 5,307 5,580 5,913 5,646 5,982 5,616 5,465 5,727 5,949
Game/fishtransactions n/a n/a 167 235 250 156 325 509 445 433
Dealershipsserviced n/a 18 14 21 25 30 34 38 21 23
Driverslicensestransactions n/a n/a n/a n/a 450 605 579 814 951 1,462
Netrevenuepertransaction n/a n/a n/a n/a n/a n/a 1.71$2.75$2.68$2.91$
N/A=NotAvailable
MG=MillionsofGallons
Note:Indicatorsarenotavailableforthegeneralgovernmentfunction.
Sources:Variouscitydepartments
FiscalYear
93
CITYOFMONTICELLO
CapitalAssetsStatisticsbyFunction
LastTenFiscalYears
2005 2006 2007 2008 2009 2010 2011 2012 2013 2014
Function
Publicsafety
Fire
Firestationsinservice 1 1 1 1 1 1 1 1 1 1
Numberofvolunteers 30 30 30 30 30 30 30 30 30 30
Publicworks
Streets(miles)52.4 65.7 67.6 67.6 68.0 68.0 68.0 68.0 68.0 68.0
Recreationandculture
Parksacreage –––120 180 509 635 635 696 860
Parks 18 19 19 20 20 28 28 28 28 30
Parkbuildings 9 9 9 10 11 15 15 15 15 15
Communitycenter(squarefootage)81,000 81,000 81,000 81,000 81,000 81,000 81,000 81,000 82,000 82,000
Water
Firehydrants 700 700 700 700 700 700 700 700 700 700
Note:Nocapitalassetindicatorsareavailableforthegeneralgovernmentandeconomicdevelopmentfunctions.
Source:Variouscitydepartments
94
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