The URL can be used to link to this page

Home My WebLink About3.b. Presentation and Acceptance of 2012 Comprehensive Annual Financial Report (CAFR)4ROSEMOUNTEXECUTIVE SUMMARY CITY COUNCIL City Council Meeting Date: May 21, 2013 AGENDA ITEM: Presentation and Acceptance of 2012 AGENDA SECTION: Comprehensive Annual Financial Report presentations CAFR PREPARED BY: Jeff May, Finance Director AGENDA NO. 3. �. ATTACHMENTS: Resolution, CAFR APPROVED BY: RECOMMENDED ACTION: Motion to adopt a Resolution Accepting the 2012 Comprehensive Annual Financial Report. ISSUE Review and accept the 2012 CAFR. BACKGROUND A representative from our audit firm, Baker Tilly Virchow Krause, LLP, will be here on Tuesday evening, May 21", to review the City of Rosemount's 2012 CAFR. The representative will give a brief presentation, highlighting items that may be worthy of your attention and will also be available to answer any questions that you may have SUMMARY Recommend the above motion to accept the 2012 CAFR. CITY OF ROSEMOUNT DAKOTA COUNTY, MINNESOTA RESOLUTION 2013 - A RESOLUTION ACCEPTING THE 2012 COMPREHENSIVE ANNUAL FINANCIAL REPORT WHEREAS, the City of Rosemount has been presented its 2012 Comprehensive Annual Financial Report, prepared with the assistance of our audit firm of Baker Tilly Virchow Krause, LLP. NOW, THEREFORE, BE IT RESOLVED, that the City Council of the City of Rosemount, accepts its 2012 Comprehensive Annual Financial Report, prepared with the assistance of our audit firm of Baker Tilly Virchow Krause, LLP. ADOPTED this 21St day of May, 2013. William H. Droste, Mayor ATTEST: Amy Domeier, City Clerk ■ — -7w }' , I F - - L �1 Y� d4 .� -•�J , __ ' }, _� __~ r - —� � �. _� -tom_ — -- - r� _ F � _ 1• -f�� _ 4 — — i— — � _ . ..■ .. _ � rte— —� .� —•.�. �— � � _ Y . Yom= _ r�� — —.� i _ _ ' _ ■ I___ L* Y CITY OF ROSEMOUNT COMMUNICATION TO THOSE CHARGED WITH GOVERNANCE AND MANAGEMENT As of and for the Year Ended December 31, 2012 CITY OF ROSEMOUNT TABLE OF CONTENTS Required Communication of Internal Control Related Matters Identified in the Audit to Those Charged with Governance Internal Control Over Financial Reporting Control Environment Other Communications with Those Charged with Governance Two Way Communication Regarding Your Audit 3-4 Communication of Recommendations and Informational Points to Management Required Communications by the Auditor with Those Charged with Governance 6-9 Management Representations REQUIRED COMMUNICATION OF INTERNAL CONTROL RELATED MATTERS IDENTIFIED IN THE AUDIT TO THOSE CHARGED WITH GOVERNANCE t �; A 4-'r - -~ i— �-• . i r — —I — — i_- . r r■ a_ r_ — a— r — f A L — — - w i - fr —� � • 3F Y •I i` I r. f� � � � L t. y .• i 1 . t �; INTERNAL CONTROL OVER FINANCIAL REPORTING Auditing standards require that we perform procedures to obtain an understanding of your government and its internal control environment as part of the annual audit. This includes an analysis of the City's, year -end financial reporting process and preparation of your financial statements. A properly designed system of internal control allows for the presentation of year -end financial statements without material errors. At this time, the City does not have internal controls in place that allow for the presentation of materially correct year -end financial statements. As a result, we consider this absence of controls to be a material weakness in internal control over the City's financial reporting. To provide some perspective, establishment of such internal controls can be a difficult task for governments. Many governments do rely on their auditors to prepare the year -end financial statements. Because the auditors are not involved with the City's day -to -day activities, it is important that management have the skills, knowledge, and experience to review the financial statements prepared by the auditors to ensure completeness, accuracy, and consistency with management's knowledge of transactions impacting the City during the year. CONTROL ENVIRONMENT Auditing standards require that we perform procedures to obtain an understanding of your government and its internal control environment as part of the annual audit. This includes an analysis of significant transaction cycles. A properly designed system of internal control includes adequate staffing, policies, and procedures to properly segregate duties. This includes systems that are designed to limit the access or control of any one individual to your government's assets, and to achieve a higher likelihood that errors or irregularities in your processes would be discovered by your staff. At this time, the City does not have internal controls in place to achieve adequate segregation of duties. As a result, there is a material weakness related to the City's internal control environment. At this time, the City does not have the following controls in place: CONTROLS OVER UTILITY BILLING 1. Proper segregation between receipting and billing functions does not exist. CONTROLS OVER FINANCIAL REPORTING ON A MONTHLY BASIS 1. A system report of manual adjusting journal entries is not reviewed by someone independent of posting journal entries. Adjusting journal entries and supporting documentation are not reviewed by an appropriate person who is the not the original preparer in most cases. 2. Account reconciliations are not performed by someone without general ledger access and involved with processing of transactions. The absence of these key controls is considered to be a material weakness. Achieving adequate segregation of duties may not be cost beneficial to attain in all situations. However, it is very important that management and the governing body provide the appropriate level of financial oversight to the City's day -to -day activities. We recommend that the City consider the benefits of implementing additional policies and procedures to address key controls related to its significant transaction cycles, as noted above. Page 2 OTHER COMMUNICATIONS WITH THOSE CHARGED WITH GOVERNANCE TWO WAY COMMUNICATION REGARDING YOUR AUDIT As part of our audit of your financial statements, we are providing communications to you throughout the audit process. Auditing requirements provide for two -way communication and are important in assisting the auditor and you with more information relevant to the audit. As this past audit is concluded, we use what we have learned to begin the planning process for next year's audit. It is important that you understand the following points about the scope and timing of our next audit: a. We address the significant risks or material noncompliance, whether due to fraud or error, through our detailed audit procedures. b. We will obtain an understanding of the five components of internal control sufficient to assess the risk of material noncompliance related to the federal and state awards whether due to error or fraud, and to design the nature, timing, and extent of further audit procedures. We will obtain a sufficient understanding by performing risk assessment procedures to evaluate the design of controls relevant to an audit of the federal and state awards and to determine whether they have been implemented. We will use such knowledge to: > Identify types of potential noncompliance. > Consider factors that affect the risks of material noncompliance. > Design tests of controls, when applicable, and other audit procedures. We will not express an opinion on the effectiveness of internal control over financial reporting or compliance with laws, regulations, and provisions of contracts or grant programs. For audits done in accordance with Government Auditing Standards, our report will include a paragraph that states that the purpose of the report is solely to describe (a) the scope of testing of internal control over financial reporting and compliance and the result of that testing and not to provide an opinion on the effectiveness of internal control over financial reporting or on compliance, (b) the scope of testing internal control over compliance for major programs and major program compliance and the result of that testing and to provide an opinion on compliance but not to provide an opinion on the effectiveness of internal control over compliance and, (c) that the report is an integral part of an audit performed in accordance with Government Auditing Standards in considering internal control over financial reporting and compliance. The paragraph will also state that the report is not suitable for any other purpose. c. The concept of materiality recognizes that some matters, either individually or in the aggregate, are important for fair presentation of financial statements in conformity with generally accepted accounting principles while other matters are not important. In performing the audit, we are concerned with matters that, either individually or in the aggregate, could be material to the financial statements. Our responsibility is to plan and perform the audit to obtain reasonable assurance that material misstatements, whether caused by errors or fraud, are detected. d. We address the significant risks or material noncompliance, whether due to fraud or error, through our detailed audit procedures. Page 3 TWO WAY COMMUNICATION REGARDING YOUR AUDIT (cont.) We are very interested in your views regarding certain matters. Those matters are listed here: a. We typically will communicate with your top level of management unless you tell us otherwise. b. We understand that the City and City Council has the responsibility to oversee the strategic direction of your organization, as well as the overall accountability of the entity. Management has the responsibility for achieving the objectives of the entity. c. We need to know your views about your organization's objectives and strategies, and the related business risks that may result in material misstatements. d. Which matters do you consider warrant particular attention during the audit, and are there any areas where you request additional procedures to be undertaken? e. Have you had any significant communications with regulators or grantor agencies? f. Are there other matters that you believe are relevant to the audit of the financial statements or the federal award programs (if necessary)? Also, is there anything that we need to know about the attitudes, awareness, and actions of the City concerning: a. The City's internal control and its importance in the entity, including how those charged with governance oversee the effectiveness of internal control? b. The detection or the possibility of fraud? We also need to know if you have taken actions in response to developments in financial reporting, laws, accounting standards, governance practices, or other related matters, or in response to previous communications with us. With regard to the timing of our audit, here is some general information. We typically perform preliminary financial audit work in early February. Our final financial fieldwork is scheduled during the first couple weeks of March to best coincide with your readiness and report deadlines. After fieldwork, we wrap up our financial audit procedures at our office and issue drafts of our report for review. Final copies of our report and other communications are issued after approval by your staff. This is typically 6 -8 weeks after final fieldwork, but may vary depending on a number of factors. Keep in mind that while this communication may assist us with planning the scope and timing of the audit, it does not change the auditor's sole responsibility to determine the overall audit strategy and the audit plan, including the nature, timing, and extent of procedures necessary to obtain sufficient appropriate audit evidence. We realize that you may have questions or wish to provide other feedback. We welcome the opportunity to talk with you. Page 4 COMMUNICATION OF RECOMMENDATIONS AND INFORMATIONAL POINTS TO MANAGEMENT PROFESSIONAL STANDARDS UPDATE / INFORMATIONAL POINTS ASSISTANCE WITH FINANCIAL OPERATIONS Local governments are always searching for ways to do a better job providing services and utilizing resources. Two organizations provide tools and information to help you meet those objectives. The Government Finance Officers Association (GFOA) based in Chicago, Illinois has a large number of best practices, advisories, and public policy statements available free of charge. The best practices and advisories are organized by category: • Accounting, Auditing and Financial Reporting • Budgeting and Fiscal Policy • Debt Management • Economic Development and Capital Planning • Retirement and Benefits Administration • Treasury and Investment Management Included in these topics are about 180 individual documents which present a best practice or advice. Recently, the GFOA released the following 6 new or updated documents: • Presentation of the Departmental Section in the Operating Budget • Establishing and Administering an OPEB Trust • The Public Finance Officer's Role in Sustainability • Expenses Charged by Underwriters in Negotiated Sales • Managing Build America and Other Direct Subsidy Bonds • Using Mutual Funds for Cash Management Purposes In addition, the GFOA has a practice manual entitled "Best Practices in Public Budgeting ". All of these are available for your review at www.gfoa.org. The Governmental Accounting Standards Board (GASB) also has publications available to assist governments. The latest guide is called "What You Should Know About Your Local Government's Finances — A Guide to Financial Statements ". We encourage you to consider using these resources as appropriate to improve your financial operations. YELLOW BOOK (GOVERNMENT AUDITING STANDARDS) REVISIONS The Government Accountability Office (GAO) released a revision to the Yellow Book auditing standards. This is a major revision and the first revision since July 2007. The changes were effective for the year ending December 31, 2012. The major change in the new standards relates to how much assistance the auditor can provide to the City during the audit process. The changes cover the area of "nonaudit services ". Nonaudit services include such topics as bookkeeping assistance, consulting services, and preparation of the year -end financial statements. The goal of the new standards is to make it more clear that auditors cannot provide services to audit clients that would impair our independence. In other words, we cannot be part of your internal control system, and we cannot perform management functions. We developed tools to implement the revised standards which included documentation of the City's ability to oversee the services we provide. Page 5 REQUIRED COMMUNICATIONS BY THE AUDITOR WITH THOSE CHARGED WITH GOVERNANCE ■ —— II -. •-�+- ilk. ! _ 'r .r _ - .. r'" �i _�� # -. _ � -. �• dL ■ LJ To the City Council City of Rosemount QUALITATIVE ASPECTS OF THE ENTITY'S SIGNIFICANT ACCOUNTING PRACTICES Accounting Policies Management is responsible for the selection and use of appropriate accounting policies. In accordance with the terms of our engagement letter, we will advise management about the appropriateness of accounting policies and their application. The significant accounting policies used by the City of Rosemount are described in Note I to the financial statements. As described in Note LB to the financial statements, the City adopted the provisions of Governmental Accounting Standards Board Statement No. 63 — Financial Reporting of Deferred Outflows of Resources, Deferred Inflows of Resources, and Net Position. We noted no transactions entered into by the City of Rosemount during the year that were both significant and unusual, and of which, under professional standards, we are required to inform you, or transactions for which there is a lack of authoritative guidance or consensus. Accounting Estimates Accounting estimates are an integral part of the financial statements prepared by management and are based on management's knowledge and experience about past and current events and assumptions about future events. Certain accounting estimates are particularly sensitive because of their significance to the financial statements and because of the possibility that future events affecting them may differ significantly from those expected. Financial Statement Disclosures The disclosures in the financial statements are neutral, consistent, and clear. DIFFICULTIES ENCOUNTERED IN PERFORMING THE AUDIT We encountered no significant difficulties in dealing with management in performing our audit. AUDIT ADJUSTMENTS Professional standards require us to accumulate all known and likely misstatements identified during the audit, other than those that are trivial, and communicate them to the appropriate level of management. There were no such misstatements identified related to the fund statements. However, we prepared the GASB No. 34 conversion entries which are summarized in the "Reconciliation of the Balance Sheet of Governmental Funds to the Statement of Net Position" and the "Reconciliation of the Statement of Revenues, Expenditures, and Changes in Fund Balances of Governmental Funds to the Statement of Activities" in the financial statements. A summary of uncorrected financial statement misstatements is attached. Management has determined that their effects are immaterial, both individually and in the aggregate, to the financial statements taken as a whole. DISAGREEMENTS WITH MANAGEMENT For purposes of this letter, professional standards define a disagreement with management as a matter, whether or not resolved to our satisfaction, concerning a financial accounting, reporting, or auditing matter that could be significant to the financial statements or the auditor's report. We are pleased to report that no such disagreements arose during the course of our audit. Page 7 To the City Council City of Rosemount CONSULTATIONS WITH OTHER INDEPENDENT ACCOUNTANTS In some cases, management may decide to consult with other accountants about auditing and accounting matters. If a consultation involves application of an accounting principle to the governmental unit's financial statements or a determination of the type of auditors' opinion that may be expressed on those statements, our professional standards require the consulting accountant to check with us to determine that the consultant has all the relevant facts. To our knowledge, there were no such consultations with other accountants. MANAGEMENT REPRESENTATIONS We have requested certain representations from management that are included in the management representation letter. This letter follows this required communication. INDEPENDENCE We are not aware of any relationships between Baker Tilly Virchow Krause, LLP and the City that, in our professional judgment, may reasonably be thought to bear on our independence. Relating to our audit of the financial statements of for the year ended December 31, 2012, Baker Tilly Virchow Krause, LLP hereby confirms that we are, in our professional judgment, independent with respect to the City in accordance with the Code of Professional Conduct issued by the American Institute of Certified Public Accountants, and provided no services to the City other than audit services provided in connection with the audit of the current year's financial statements and nonaudit services which in our judgment do not impair our independence. > Financial statement preparation > Adjusting journal entries > CIVIC Systems software None of these nonaudit services constitute an audit under generally accepted auditing standards, including Government Auditing Standards. OTHER AUDIT FINDINGS OR ISSUES We generally discuss a variety of matters, including the application of accounting principles and auditing standards, with management each year prior to retention as the City's auditors. However, these discussions occurred in the normal course of our professional relationship and our responses were not a condition to our retention. OTHER MATTERS With respect to the supplementary information accompanying the financial statements, we made certain inquiries of management and evaluated the form, content, and methods of preparing the information to determine that the information complies with accounting principles generally accepted in the United States of America, the method of preparing it has not changed from the prior period, and the information is appropriate and complete in relation to our audit of the financial statements. We compared and reconciled the supplementary information to the underlying accounting records used to prepare the financial statements or to the financial statements themselves. Page 8 To the City Council City of Rosemount This information is intended solely for the use of the City Council and management and is not intended to be, and should not be, used by anyone other than these specified parties. We welcome the opportunity to discuss the information included in this letter and any other matters. Thank you for allowing us to serve you. Q1 Minneapolis, Minnesota May 13, 2013 Page 9 MANAGEMENT REPRESENTATIONS I � Y ■ I Y .. Y= J `V-- — - ■ - ` — i —•+ — r' r_ —a•4 - � �� `1. `+`� r �� _r. art ��- - . #� - Ir� f �ti .`� -� � ■ .. _' — � �— `. '� -- .:-� ham,' `''.�� -• �-� ■ i F� r J F r — .■ r IL Baker Tilly Virchow Krause, LLP Page 2 3. We acknowledge our responsibility for the design, implementation, and maintenance of internal control relevant to the preparation and fair presentation of financial statements that are free from material misstatement, whether due to fraud or error. 4. We acknowledge our responsibility for the design, implementation, and maintenance of internal control to prevent and detect fraud. 5. Significant assumptions we used in making accounting estimates are reasonable. 6. Related party relationships and transactions, including revenues, expenditures /expenses, loans, transfers, leasing arrangements, and guarantees, and amounts receivable from or payable to related parties have been appropriately accounted for and disclosed in accordance with the requirements of accounting principles generally accepted in the United States of America. 7. All events subsequent to the date of the financial statements and for which accounting principles generally accepted in the United States of America require adjustment or disclosure have been adjusted or disclosed. No events, including instances of noncompliance, have occurred subsequent to the balance sheet date and through the date of this letter that would require adjustment to or disclosure in the aforementioned financial statements. 8. We believe the effects of the uncorrected financial statement misstatements summarized in the attached schedule are immaterial, both individually and in the aggregate, to the basic financial statements taken as a whole. In addition, you have recommended adjusting journal entries, and we are in agreement with those adjustments. 9. There are no unasserted claims or assessments that our lawyer has advised us are probable of assertion and must be disclosed in accordance with accounting principles generally accepted in the United States of America. 10. Guarantees, whether written or oral, under which the City is contingently liable, if any, have been properly recorded or disclosed. 11. We have provided you with: a. Access to all information, of which we are aware, that is relevant to the preparation and fair presentation of the financial statements, such as records, documentation, and other matters. b. Additional information that you have requested from us for the purpose of the audit. c. Unrestricted access to persons within the entity from whom you determined it necessary to obtain audit evidence. d. Minutes of the meetings of the City Council or summaries of actions of recent meetings for which minutes have not yet been prepared. 12. All material transactions have been recorded in the accounting records and are reflected in the financial statements. Baker Tilly Virchow Krause, LLP Page 3 13. We have disclosed to you the results of our assessment of the risk that the financial statements may be materially misstated as a result of fraud. 14. We have no knowledge of any fraud or suspected fraud that affects the entity and involves: a. Management, b. Employees who have significant roles in internal control, or c. Others where the fraud could have a material effect on the financial statements. 15. We have no knowledge of any allegations of fraud or suspected fraud affecting the entity received in communications from employees, former employees, regulators, or others. 16. There are no known instances of noncompliance or suspected noncompliance with provisions of laws, regulations, contracts, or grant agreements, or abuse, whose effects should be considered when preparing financial statements. 17. There are no known actual or possible litigation, claims, and assessments whose effects should be considered when preparing the financial statements. 18. We have disclosed to you all known related parties and all the related party relationships and transactions of which we are aware. 19. We have made available to you all financial records and related data. 20. There have been no communications from regulatory agencies concerning noncompliance with, or deficiencies in, financial reporting practices. 21. We have a process to track the status of audit findings and recommendations. 22. We have identified to you any previous financial audits, attestation engagements, and other studies related to the audit objectives and whether related recommendations have been implemented. 23. We have provided our views on reported findings, conclusions, and recommendations, as well as our planned corrective actions, for our report. 24. The City has no plans or intentions that may materially affect the carrying value or classification of assets, liabilities, or equity. 25. We are responsible for compliance with federal, state, and local laws, regulations, and provisions of contracts and grant agreements applicable to us, including tax or debt limits and debt contracts; and we have identified and disclosed to you all federal, state, and local laws, regulations and provisions of contracts and grant agreements that we believe have a direct and material effect on the determination of financial statement amounts or other financial data significant to the audit objectives, including legal and contractual provisions for reporting specific activities in separate funds. Baker Tilly Virchow Krause, LLP Page 4 26. There are no: a. Violations or possible violations of budget ordinances, federal, state, and local laws or regulations (including those pertaining to adopting and amending budgets), provisions of contracts and grant agreements, tax or debt limits, and any related debt covenants whose effects should be considered for disclosure in the financial statements or as a basis for recording a loss contingency, or for reporting on noncompliance. b. Other liabilities or gain or loss contingencies that are required to be accrued or disclosed by accounting principles generally accepted in the United States of America. c. Nonspendable, restricted, committed, or assigned fund balances that were not properly authorized and approved. d. Rates being charged to customers other than the rates as authorized by the applicable authoritative body. e. Violations of restrictions placed on revenues as a result of bond resolution covenants such as revenue distribution or debt service funding. 27. In regards to the nonattest services performed by you listed below, we have 1) made all management decisions and performed all management functions; 2) designated an individual with suitable skill, knowledge, or experience to oversee the services; 3) evaluated the adequacy and results of the services performed, and 4) accepted responsibility for the results of the services. a. Financial statement preparation b. Adjusting journal entries c. Civic Systems software None of these non attest services constitute an audit under generally accepted auditing standards, including Government Auditing Standards. 28. The City of Rosemount has satisfactory title to all owned assets, and there are no liens or encumbrances on such assets nor has any asset been pledged as collateral. 29. The City of Rosemount has complied with all aspects of contractual agreements that would have a material effect on the financial statement in the event of noncompliance. 30. We have followed all applicable laws and regulations in adopting, approving, and amending budgets. 31. The financial statements include all component units as well as joint ventures with an equity interest, and properly disclose all other joint ventures and other related organizations. 32. The financial statements properly classify all funds and activities. 33. All funds that meet the quantitative criteria in GASB Statement No. 34 and No. 37 for presentation as major are identified and presented as such and all other funds that are presented as major are particularly important to financial statement users. Baker Tilly Virchow Krause, LLP Page 5 34. Components of net assets (net investment in capital assets; restricted; and unrestricted) and equity amounts are properly classified and, if applicable, approved. 35. The City of Rosemount has no derivative financial instruments such as contracts that could be assigned to someone else or net settled, interest rate swaps, collars or caps. 36. Provisions for uncollectible receivables have been properly identified and recorded. 37. Expenses have been appropriately classified in or allocated to functions and programs in the statement of activities, and allocations have been made on a reasonable basis. 38. Revenues are appropriately classified in the statement of activities within program revenues and general revenues. 39. Interfund, internal, and intra- entity activity and balances have been appropriately classified and reported. 40. Deposits and investment securities are properly classified as to risk, and investments are properly valued. 41. Capital assets, including infrastructure and intangible assets, are properly capitalized, reported, and, if applicable, depreciated /amortized. 42. We have appropriately disclosed the City of Rosemount's policy regarding whether to first apply restricted or unrestricted resources when an expense is incurred for purposes for which both restricted and unrestricted net assets are available and have determined that net assets were properly recognized under the policy. We have also disclosed our policy regarding how restricted and unrestricted fund balance is used when an expenditure is incurred for which both restricted and unrestricted fund balance is available, including the spending hierarchy for committed, assigned, and unassigned amounts. 43. We acknowledge our responsibility for the required supplementary information (RSI). The RSI is measured and presented within prescribed guidelines and the methods of measurement and presentation have not changed from those used in the prior period. We have disclosed to you any significant assumptions and interpretations underlying the measurement and presentation of the RSI. Baker Tilly Virchow Krause, LLP Page 6 44. With respect to the combining and individual fund financial statements: a. We acknowledge our responsibility for presenting the combining and individual fund financial statements in accordance with accounting principles generally accepted in the United States of America, and we believe the combining and individual fund financial statements, including its form and content, is fairly presented in accordance with accounting principles generally accepted in the United States of America. The methods of measurement and presentation of the combining and individual fund financial statements have not changed from those used in the prior period, and we have disclosed to you any significant assumptions or interpretations underlying the measurement and presentation of the supplementary information. b. If the combining and individual fund financial statements is not presented with the audited financial statements, we will make the audited financial statements readily available to the intended users of the supplementary information no later than the date we issue the supplementary information and the auditor's report thereon. Sincerely, City of Rosemount Signed: Signed: Signed: N 2 LU h F M 2 W E ui Q C ~ M E¢ 4)) U oZ Z U F U W 0 O U Z LL O N N N M E U U L C LU V) a) N NL f6 U) (6 .0 C LL � N V 9 r O^ N V W a0 M- cm N C 00 U '4) M ((O M r O - M N V I� O N 00 m N U Z C. LL C V O N N h � ~ X N W X W C V O N N (VO O (0D r r N y r N O M O i, V N V c7 O V r (00 M O 0 c V N M h N (O O (D 0) M M N M co F a M d c I LL N � N 30 �11 31 C J d I- p D cc U 9 Z J y N O w O P, V N 30 M O V r n (00 co O V 55 N co Oa) m M N M M 0 3 Q O a N 0 C � N C Q O Z NI MI MI ' U N N c LL y LL G U 7 N~ L U E G c N E N (A Y6 LL LL C r A m (9 O U A U) of ■! I I f I >. , fry �..,.�� }3 f,M,._.._ � .;s? � � _ _ ..�'..�i G'r�� ?�..w,+e.,�,� ::f• :�:_ w a.:.� _. � �.,5 - �..."� A 1 5 �- - - ice, ; • --= y - , - =�--y - -* -- I CITY OF ROSEMOUNT, MINNESOTA COMPREHENSIVE ANNUAL FINANCIAL REPORT FOR THE YEAR ENDED DECEMBER 31, 2012 PREPARED BY THE DEPARTMENTS OF ADMINISTRATION AND FINANCE DWIGHT D. JOHNSON, City Administrator JEFFREY A. MAY, Finance Director CITY OF ROSEMOUNT COMPREHENSIVE ANNUAL FINANCIAL REPORT As of and for the Year Ended December 31, 2012 TABLE OF CONTENTS Paqe INTRODUCTORY SECTION Letter of Transmittal i GFOA Certificate of Achievement vii Organizational Chart viii List of Elected and Appointed Officials ix FINANCIAL SECTION Independent Auditors' Report 1 - 2 Management's Discussion and Analysis 3-11 Basic Financial Statements: Government -wide Financial Statements: Statement of Net Position 12 Statement of Activities 13 Fund Financial Statements: Balance Sheet — Governmental Funds 14 Statement of Revenues, Expenditures and Changes in Fund Balances - Governmental Funds 15 Reconciliation of the Statement of Revenues, Expenditures and Changes in Fund Balances of Governmental Funds to the Statement of Activities 16 Statement of Net Position — Proprietary Funds 17 Statement of Revenues, Expenses, and Changes in Fund Net Position - Proprietary Funds 18 Statement of Cash Flows — Proprietary Funds 19-20 Statement of Net Position — Fiduciary Fund 21 Notes to the Financial Statements 22-55 Required Supplementary Information: Schedule of Revenues Compared to Budget (Budgetary Basis) — Budget and Actual — General Fund 56 Schedule of Expenditures and Other Uses (Budgetary Basis) — Budget and Actual — General Fund 57 Notes to Required Supplementary Information 58 Supplementary Information: Combining and Individual Fund Statements and Schedules: Combining Balance Sheet — Nonmajor Governmental Funds 59 Combining Statement of Revenues, Expenditures and Changes in Fund Balances — Nonmajor Governmental Funds 60 Schedules of Revenues, Expenditures and Changes in Fund Balances (Budgetary Basis) — Budget and Actual: Building CIP Capital Project Fund 61 Street CIP Capital Project Fund 62 Equipment CIP Capital Project Fund 63 Schedule of Changes in Assets and Liabilities — M.A.A.G. Agency Fund 64 CITY OF ROSEMOUNT COMPREHENSIVE ANNUAL FINANCIAL REPORT As of and for the Year Ended December 31, 2012 TABLE OF CONTENTS STATISTICAL SECTION (Unaudited) Net Position by Component Changes in Net Position Fund Balances, Governmental Funds Changes in Fund Balances, Governmental Funds Assessed Value (or Tax Capacity) and Estimated Market Value of All Taxable Property Property Tax Rates — All Direct and Overlapping Governmental Units Principal Property Tax Payers Property Tax Levies and Collections Ratios of Outstanding Debt by Type Ratios of Net General Bonded Debt Outstanding Direct and Overlapping Governmental Activities Debt Legal Debt Margin Calculation Pledged Revenue Coverage Demographic and Economic Statistics Principal Employers Full- Time /Permanent Part-Time City Government Employees by Function /Program Operating Indicators by Function /Program Capital Asset Statistics by Function /Program 66 67 69 70 71 72 73 74 75 76 77 78 79 80 81 82 83 84 a - - - - --T --v-- . i r' -v-" a— �' i. �aF ,tom L —Y � �I �YYr�r � —�� . —• L �� L � � -1��. �,� -� 4�- �I�• !+ F +�. i � Yom+" � ; ;- �' �r� f �• YT —T� =L. w . r —� _ Y= — _ y i I `f6- fi r r�i� r. i +- —'- �� - - y� Yl -- {,— ' ■ _ ■ �" ham+ • _+ , _* Y l ' .a- Profile of the Government The City was established as a municipal corporation in 1858, and became a statutory City in 1974. The City has a Mayor - Council form of government, with the four Council members being elected to overlapping four -year terms of office and the Mayor serving a four -year term coinciding with the terms of two of the Council members. This term for the Mayor was a change instituted in 1996. Prior to that, the Mayor was elected every two years. The City Council is responsible, among other things, for passing ordinances, adopting the budget, appointing committees and hiring the City's chief administrative officer. The City's chief administrative officer is the City Administrator, who is appointed by and serves at the discretion of the City Council. The City Administrator is responsible for carrying out the policies and ordinances of the City Council, for overseeing the day -to -day operations of the City and for appointing the heads of the City's various departments, with the City Council's final approval. The City of Rosemount is a growing southern suburb in the Minneapolis /St. Paul metropolitan area, located in Dakota County. The City encompasses approximately 36 square miles. The City is one of the fastest growing communities in the seven - county Minneapolis /St. Paul metropolitan area as demonstrated by the following population trend: Rosemount has an extensive system of State and County highways and 105 miles of city streets that continue to contribute to the community's growth. This extensive highway network and large tracts of attractive, developable land have made the City an ideal location for residential development and increasingly commercial /industrial development. There is over 1,000 acres of industrial and commercially zoned property ready for development. There is also well over 1,200 acres of property within the Municipal Service Area (MUSA) to permit future residential growth. Rail, air, barge and freeway access provides Rosemount's economic community with an expedient transportation system. Four major highways link Rosemount to Minneapolis, St. Paul and the rest of the metropolitan area. The City provides a full range of services, including police and fire protection; the construction and maintenance of highways, streets, and other infrastructure; water, sewer, and storm water services; and recreational activities and cultural events. Certain economic development services are provided through the Rosemount Port Authority. The Port Authority's financial data has been presented in this financial report as a blended component unit. The annual budget serves as the foundation for the City's financial planning and control. All departments of the City submit requests for appropriation to the City Administrator on or before May Vt of each year. The City Administrator uses these requests as the starting point for developing a proposed budget. The City Administrator then presents this proposed budget to the Council for review and adoption of a preliminary levy by September 15th. The council holds a public hearing on the proposed budget and must adopt a final budget and levy by no later than December 20th, prior to the close of the City's fiscal year. Population Percent Population Increase Increase 2012 Staff Estimate 22,432 558 2.55% 2010 Census 21,874 7,255 50% 2000 Census 14,619 5,997 70% 1990 Census 8,622 3,539 70% 1980 Census 5,083 1,049 26% 1970 Census 4,034 - - Rosemount has an extensive system of State and County highways and 105 miles of city streets that continue to contribute to the community's growth. This extensive highway network and large tracts of attractive, developable land have made the City an ideal location for residential development and increasingly commercial /industrial development. There is over 1,000 acres of industrial and commercially zoned property ready for development. There is also well over 1,200 acres of property within the Municipal Service Area (MUSA) to permit future residential growth. Rail, air, barge and freeway access provides Rosemount's economic community with an expedient transportation system. Four major highways link Rosemount to Minneapolis, St. Paul and the rest of the metropolitan area. The City provides a full range of services, including police and fire protection; the construction and maintenance of highways, streets, and other infrastructure; water, sewer, and storm water services; and recreational activities and cultural events. Certain economic development services are provided through the Rosemount Port Authority. The Port Authority's financial data has been presented in this financial report as a blended component unit. The annual budget serves as the foundation for the City's financial planning and control. All departments of the City submit requests for appropriation to the City Administrator on or before May Vt of each year. The City Administrator uses these requests as the starting point for developing a proposed budget. The City Administrator then presents this proposed budget to the Council for review and adoption of a preliminary levy by September 15th. The council holds a public hearing on the proposed budget and must adopt a final budget and levy by no later than December 20th, prior to the close of the City's fiscal year. The appropriated budget is prepared by fund, department and function. The City's department heads may make transfers of appropriations within a department; transfers of appropriation between departments require approval of the City Council. Budget -to- actual comparisons are provided in this report for each individual governmental fund for which an appropriated annual budget has been adopted. For the general fund, this comparison is presented on pages 56 -57 as part of the Required Supplementary Information. Factors Affecting Financial Condition The information presented in the financial statements is perhaps best understood when it is considered from the broader perspective of the specific environment within which the City operates. Local economy Rosemount is unique in that a significant portion of the community is currently undeveloped. Development has occurred west to east, with the eastern portion of the City still dedicated to agricultural use. As land in the west becomes scarce, new residential development has moved to the central portion of the community, providing for orderly contiguous development. The new development is located where the City conducted in 2007 an environmental review process, an AUAR, which provides for 1,200 acres of residential and commercial development with City sewer and water. The fifteen largest taxpayers comprise a mix of residential, industrial, commercial and utilities that represent approximately 20.16% of the City's tax base. Labor market data is very impressive for the State, Minneapolis /St. Paul metropolitan area and Dakota County, in which Rosemount is located. 2012 labor force numbers were 2,959,070; 1,857,894; and 232,540 respectively with unemployment rates of 5.5 %; 5.1 % and 4.8% to match. These figures compare quite favorably with national figures. Community leadership has preserved 467 beautiful acres of land for 28 parks. Residents can enjoy a round of golf on a 27 -hole public course. Bordered by the scenic Mississippi River, Rosemount also contains 270 acres of the Spring Lake Regional Park Preserve. Rosemount's Community Center, a part of the Army National Guard's regional headquarters, provides a variety of indoor recreation opportunities and meeting spaces, including an ice arena, gymnasium, auditorium and banquet facility. Given the underlying strength of the economy in the seven county metropolitan area, the diversification of tax and employment bases and Rosemount's desirable location, the future outlook is very optimistic. Long -term financial planning Growth and development is guided by the City's adopted Comprehensive Plan. The City adopted the 2030 Plan in 2009 in accordance with State law which projects population and job increases for the next 20 years. The Plan anticipates up to 6,500 more acres of urbanized growth, encompassing residential, commercial and industrial growth. The Comprehensive Plan continues to promote orderly development and growth which will perpetuate a sound tax base. Other factors New housing starts were up slightly from 2011 with 72 new residential units, almost all being single family detached housing. There are two national builders and one regional builder in the AUAR area and based upon their feedback sales have been meeting or exceeding their expectations. Approximately 180 single family lots have been created are in various stages of development with another 65 preliminarily platted but not final platted. Staff is also in conversation with several local landowners who are working with developers to sell and plat their properties. Total construction valuation in 2012 was significantly higher than in the last three years. This is in part due to the new higher value residential construction but also some larger commercial and industrial projects. The largest commercial project was the demolition and reconstruction of the local McDonald's. There were also assorted commercial ventures such as tenant finishings and remodeling of an old Pizza Hut building. Likewise a new 60,000 square foot building for Hawkins Chemical brought the industrial construction value up dramatically. Additional improvements to other local industrial companies also played a part in the valuation jump. The City and ISD 196 continued to have significant capital projects such as reroofing at the public schools, ball fields and buildings at Dakota County Technical College, establishment of a new park and ride with transit shelter by Minnesota Valley Transit Authority and improvements to the City's community center and Steeple Center resulted in continued permit revenue in the public / institutional sector. In total the building valuation for all construction in 2012 was $38,804,214, approximately $10,000,000 more than in 2011. Cartegraph and GIS Staff continues to upgrade and modify the existing Cartegraph and GIS systems in an effort to improve the efficiency and effectiveness, not only in the Public Works department, but across other departments as well. In 2012, we began planning for and designing a new process for gate valve inspections that will be implemented in 2013. We also began to explore the option of using iPads to document our playground and building inspections in Cartegraph. Based on research and information gathered in 2012, staff plans to purchase and implement two new iPads in 2013. Use of the iPads will expand beyond building and playground inspections as staff continues to explore new ways to apply the mobile technology that Cartegraph and GIS provide. Capital Improvement Projects The Public Works Department coordinated and / or completed several improvement projects in 2012, including rehabilitation work on Sanitary Lift Station #1; a new pump at Rural Well #10; a new roof at Fire Station #1; interior painting at City Hall and the Police Department; sealcoating the Schwarz Park parking lot; and shelter improvements at Camfield Park. 2012 Street Improvements The 2012 Street Improvement Project included mill and overlay improvements to 2.3 miles along Shannon Parkway, 145th Street West and the Shannon Hills neighborhood. Pedestrian improvements included crosswalk bumpouts, pedestrian- activated crosswalk signs and a new bituminous trail on the north side of 145th Street between Chippendale Avenue and Shannon Parkway. Construction Projects The Engineering Division coordinated the work on several construction projects in 2012: Prestwick Place 4th Addition — This neighborhood includes 34 single - family homes and is the continuation of the development of Prestwick Place, located near the northwest corner of CSAH 42 and Akron Avenue. Greystone 1 st Addition — This neighborhood is the first to be developed on the east side of Akron Avenue. It includes 23 single - family homes. An additional 31 single - family homes will be added in the Greystone 2nd Addition in 2013. Connemara Trail Extension — This project extended Connemara Trail east to Akron Avenue. Utilities were installed along the entire segment to serve future residential and commercial development in the area. The project began in 2011 and was completed in 2012. Brazil Avenue — This project involved repaving the existing road adjacent to City Hall, paving and widening the gravel segment adjacent to Erickson Park, paving the Erickson Park parking lot and installing a turnaround at the north end of the park for enhanced traffic flow. Pedestrian Trail Improvements — Two new pedestrian trails were constructed in 2012. The first was on the east side of Diamond Path between CSAH 42 and Connemara Trail. The second was on the west side of TH 3 between the Community Center and Connemara Trail. iv The Police Department provides professional and comprehensive law enforcement services to the community. The Department strives to maintain a safe environment. Specific efforts of the Department include: • Patrol Unit — Patrol officers are assigned to specific geographic beats to patrol. Patrolling in an assigned geographic area allows the officers to develop relationships with the residents and understand the service needs within the area they patrol on a daily basis. After becoming more familiar with area issues, it is expected that officers will develop plans to address crime or livability issues within their neighborhood. • Criminal Investigations Unit — Two full -time investigators are assigned to support the Patrol Unit beyond preliminary investigations and to partner with social services agencies and surrounding communities. The investigators received specialized training in many advanced areas. Predatory Offender Registration and compliance is conducted three times annually. Community Resource Unit and Outreach Programs ➢ School Involvement — The Department has officers working in both Rosemount High School and Rosemount Middle School as school resource officers (SRO). The SROs' main duties are education and intervention but they also do investigate criminal activity that occurs within the schools or involves students who attend the schools. In the elementary schools, an officer works cooperatively with the school social worker to make classroom presentations across all grades. Topics include Bully Preventions, Internet Safety and Drug Abuse Resistance Education. ➢ Night to Unite — Police and fire officials, along with City Council members, visit neighborhoods on the first Tuesday of August as part of this nationwide event. The event continues to grow each year and provides an opportunity for police, fire and city officials to interact with residents within their own neighborhoods. ➢ Public Safety in the Park — The Police Department partners with other City departments and community organizations to engage citizens and provide resources at various park locations. ➢ Child Safety Seat Clinics and Checks — The Police Department partners with the Dakota County CAP agency to provide training to the community on the proper installation and use of child restraint seats. ➢ Presentations and Cooperation — The Police Department makes public presentations on crime and crime prevention when requested by community members and groups. A weekly "Coffee- with -a -Cop" is held at coffee shops within the community to give citizens another forum to ask questions and seek information about police and crime topics. An annual Citizen's Academy is held to educate various community members on many aspects of the policing profession. ➢ Multi- Housing Unit — The Community Resource Officers lead the Crime Free Multi- Housing program which facilitates education opportunities for rental property owners, managers and residents. • The Department partners with other Dakota County law enforcement agencies to provide services in a more effective and efficient manner. This includes participation on a joint tactical team, drug task force and a county -wide dispatch center. • The Department has a strong emphasis on traffic enforcement, particularly DWI enforcement. Along with all other law enforcement agencies within the County, Rosemount supports and participates in the Dakota County Traffic Safety Project. This project concentrates traffic enforcement in a different area of the county each week and all agencies work traffic enforcement in the selected area. v In 1999, a Family Resource Center building in Rosemount began operations. The 360° Communities organization (formerly the Community Action Council [CAC]) and other service providers utilize this building to work with families in need in our community. The City constructed the building with funding coming entirely from grants and donations and leases the building to 360° Communities to house their Rosemount operations. City's financial policies During the current year, none of the City's financial polices had a significant impact on the financial statements. Awards and Acknowledgements The Government Finance Officers Association of the United States and Canada (GFOA) awarded a Certificate of Achievement for Excellence in Financial Reporting to the City of Rosemount for its comprehensive annual financial report (CAFR) for the fiscal year ended December 31, 2011. This was the sixteenth consecutive year that the City has achieved this prestigious award. In order to be awarded a Certificate of Achievement, a government must publish an easily readable and efficiently organized comprehensive annual financial report. This report must satisfy both generally accepted accounting principles and applicable legal requirements. A Certificate of Achievement is valid for a period of one year only. We believe that our current comprehensive annual financial report continues to meet the Certificate of Achievement Program's requirements and we are submitting it to the GFOA to determine its eligibility for another certificate. The preparation of this report on a timely basis could not have been accomplished without the efficient and dedicated services of the Finance Department. We would like to express our appreciation to all members of City staff who assisted and contributed to the preparation of this report. We would also like to express our appreciation to the Mayor and the members of the City Council for their interest and support in planning and conducting the financial operations of the City in a responsible and progressive manner. WspectfAIII u fitted May Finance Director vi Certificate of Achievement for Excellence in Financial Reporting Presented to City of Rosemount Minnesota For its Comprehensive Annual Financial Report for the Fiscal Year Ended December 31, 2011 A Certificate of Achievement for Excellence in Financial Reporting is presented by the Government Finance Officers Association of the United States and Canada to government units and public employee retirement systems whose comprehensive annual financial reports (CAFRs) achieve the highest standards in government accounting and financial reporting. President Executive Director I I �r F =- � { I I i I I - I I 1 I 11 - II CITY OF ROSEMOUNT CITY OFFICIALS As of and for the Year Ended December 31, 2012 ELECTED OFFICIALS: Mayor Bill Droste Councilmember Kim Shoe Corrigan Councilmember Mark DeBettignies Councilmember Matt Kearney Councilmember Jeff Weisensel APPOINTED OFFICIALS: City Administrator Finance Director Assistant City Administrator City Engineer Community Development Director Police Chief Fire Chief Parks and Recreation Director CONSULTANTS AND ADVISORS: Legal Auditing Fiscal Engineering ix Term of Office Four Years Four Years Four Years Four Years Four Years Dwight D. Johnson Jeffrey A. May Emmy Foster Andrew Brotzler Kim Lindquist Eric Werner Scott W. Aker Dan Schultz Kennedy & Graven Fluegel Law Firm, P.A. Baker Tilly Virchow Krause, LLP Springsted, Inc. Ehlers & Associates, Inc. WSB & Associates Term Expires December 31, 2014 December 31, 2014 December 31, 2014 December 31, 2012 December 31, 2012 THIS PAGE INTENTIONALLY LEFT BLANK a •r,� ' F F 6-j1' w i -: ti r " f_■ ■ T. _ tirr w r r � •�. i �' J .aF= - Y• � �- ter+ - -- ��— I —. — — J L ' _ I — � . _. ' — ' � � - � +. *� � � — � - -� #'��`_~= ti. - _� # —, mil•} � � �k,*, - � -� - - - 3 - - - y J - � _ Y� - . r �r +t -� - �•�{•. �� • ice_ 1 Y i - ■ THIS PAGE INTENTIONALLY LEFT BLANK Opinions In our opinion, the financial statements referred to above present fairly, in all material respects, the respective financial position of the governmental activities, the business -type activities, each major fund, and the aggregate remaining fund information of the City of Rosemount, Minnesota, as of December 31, 2012 and 2011 and the respective changes in financial position and, where applicable, cash flows thereof for the years then ended in accordance with accounting principles generally accepted in the United States of America. Emphasis of Matter As discussed in Note I, the City adopted the provisions of GASB Statement No. 63, Financial Reporting for Deferred Outflows of Resources, Deferred Inflows of Resources, and Net Position, effective January 1, 2012. Our opinions are not modified with respect to this matter. Other Matters Accounting principles generally accepted in the United States of America require that the management's discussion and analysis and budgetary comparison information as listed in the table of contents be presented to supplement the basic financial statements. Such information, although not a part of the basic financial statements, is required by the Governmental Accounting Standards Board who considers it to be an essential part of financial reporting for placing the basic financial statements in an appropriate operational, economic, or historical context. We have applied certain limited procedures to the required supplementary information in accordance with auditing standards generally accepted in the United States of America, which consisted of inquiries of management about the methods of preparing the information and comparing the information for consistency with management's responses to our inquiries, the basic financial statements, and other knowledge we obtained during our audit of the basic financial statements. We do not express an opinion or provide any assurance on the information because the limited procedures do not provide us with sufficient evidence to express an opinion or provide any assurance. Our audit was conducted for the purpose of forming opinions on the financial statements that collectively comprise the City's basic financial statements. The combining and individual fund financial statements as listed in the table of contents are presented for purposes of additional analysis and are not a required part of the basic financial statements. Such information is the responsibility of management and was derived from and relates directly to the underlying accounting and other records used to prepare the basic financial statements. The information has been subjected to the auditing procedures applied in the audit of the basic financial statements and certain additional procedures, including comparing and reconciling such information directly to the underlying accounting and other records used to prepare the basic financial statements or to the basic financial statements themselves, and other additional procedures in accordance with auditing standards generally accepted in the United States of America. In our opinion, the combining and individual fund financial statements as listed in the table of contents are fairly stated in all material respects, in relation to the basic financial statements as a whole. Our audit was conducted for the purpose of forming opinions on the financial statements that collectively comprise the City's basic financial statements. The introductory and statistical sections are presented for purposes of additional analysis and are not a required part of the basic financial statements. Such information has not been subjected to the auditing procedures applied in the audit of the basic financial statements, and accordingly, we do not express an opinion or provide any assurance on it. �AAA_, '],C$ V K -, ,, ZP Minneapolis, Minnesota May 13, 2013 Page 2 THIS PAGE INTENTIONALLY LEFT BLANK Management's Discussion and Analysis (Unaudited) As management of the City of Rosemount (the City), we offer readers of the City's financial statements this narrative overview and analysis of the financial activities of the City for the fiscal year ended December 31, 2012. We encourage readers to consider the information presented here in conjunction with the City's financial statements following this section. Financial Highlights • The assets of the City exceeded it's liabilities at the close of the most recent fiscal year by $190,156,865 (net position). Of this amount, $35,218,016 (unrestricted net position) may be used to meet the government's ongoing obligations to citizens and creditors. • The City's total net position increased by $5,732,710. Most of this increase is attributable to an increase of our capital assets which were primarily funded by developers. • At year end, unassigned fund balance for the General Fund was $5,905,056, or 55 percent of the total General Fund expenditures budgeted for the upcoming year. Comparison of this balance to prior years' balances is illustrated on the table on page 8. • The City's total debt decreased by $2,395,000 (11 percent) during the current year. The reason for this decrease was that there was only one new small debt issuance for new development, offset by a call on one debt issue in addition to the normally scheduled payments on existing debt. Overview of the Financial Statements This discussion and analysis is intended to serve as an introduction to the City's basic financial statements. The City's basic financial statements comprise three components: 1) government -wide financial statements, 2) fund financial statements, and 3) notes to the financial statements. This report also contains other supplementary information in addition to the basic financial statements themselves. Government -wide financial statements. The government -wide financial statements are designed to provide readers with a broad overview of the City's finances, in a manner similar to a private- sector business. The statement of net position presents information on all of the City's assets and liabilities, with the difference between the two reported as net position. Over time, increases or decreases in net position may serve as a useful indicator of whether the financial position of the City is improving or deteriorating. The statement of activities presents information showing how the government's net position changed during the most recent fiscal year. All changes in net position are reported as soon as the underlying event giving rise to the change occurs, regardless of the timing of related cash flows. Thus, revenues and expenses are reported in this statement for some items that will only result in cash flows in future fiscal periods (e.g., uncollected taxes and earned /vested but unused vacation and sick leave). Both the government -wide financial statements distinguish functions of the City that are principally supported by taxes and intergovernmental revenues (governmental activities) from other functions that are intended to recover all or a significant portion of their costs through user fees and charges (business -type activities). The governmental activities of the City include general government, public safety, public works, recreation, and community development. The business - type activities of the City include water, sewer, storm water and an ice arena. The government -wide financial statements include not only the City itself, but also a legally separate port authority, which functions as the economic development arm of the City, and therefore has been blended in with the primary government. The government -wide financial statements can be found on pages 12 -13 of this report. Page 3 Fund financial statements. A fund is a grouping of related accounts that is used to maintain control over resources that have been segregated for specific activities or objectives. The City, like other state and local governments, uses fund accounting to ensure and demonstrate compliance with finance - related legal requirements. All of the funds of the City can be divided into three categories: governmental funds, proprietary funds, and fiduciary funds. Governmental funds. Governmental funds are used to account for essentially the same functions reported as governmental activities in the government -wide financial statements. However, unlike the government -wide financial statements, governmental fund financial statements focus on the near -term inflows and outflows of spendable resources, as well as on balances of spendable resources available at the end of the fiscal year. Such information may be useful in evaluating a government's near -term financing requirements. Because the focus of governmental funds is narrower than that of the government -wide financial statements, it is useful to compare the information presented for governmental funds with similar information presented for governmental activities in the government -wide financial statements. By doing so, readers may better understand the long -term impact of the government's near -term financing decisions. Both the governmental fund balance sheet and governmental fund statement of revenues, expenditures, and changes in fund balances provide a reconciliation to facilitate this comparison between governmental funds and governmental activities. Information is presented separately in the governmental fund balance sheet and in the governmental fund statement of revenues, expenditures, and changes in fund balances for the general fund, debt service fund, capital projects fund, and the Port Authority TIF fund all of which are considered major funds. Data from the three other governmental funds are combined into a single, aggregated presentation. Individual fund data for each of these nonmajor governmental funds is provided in the form of combining statements elsewhere in this report. The City adopts an annual appropriated budget for its general fund. A budgetary comparison statement has been provided for the general fund to demonstrate compliance with this budget. The basic governmental fund financial statements can be found on pages 14 -16 of this report. Proprietary funds. The City maintains two different types of proprietary funds. Enterprise funds are used to report the same functions presented as business -type activities in the government -wide financial statements. The City uses enterprise funds to account for its public utilities and ice arena operations. The internal service fund is an accounting device to accumulate and allocate costs internally among the City's various functions. The City uses its internal service fund to account for insurance premiums and deductibles and to accumulate resources for the risk of uninsured loss. Because this service predominantly benefits governmental rather than business -type functions, it has been included within governmental activities in the government -wide financial statements. Proprietary funds provide the same type of information as the government -wide financial statements, only in more detail. The proprietary fund financial statements provide separate information for each of the public utilities, which are considered to be major funds of the City, and information on the ice arena fund, which is considered a non -major fund. The internal service fund is also presented separately in the proprietary fund financial statements. The basic proprietary fund financial statements can be found on pages 17 -20 of this report. Fiduciary funds. Fiduciary funds are used to account for resources held for the benefit of parties outside the government. Fiduciary funds are not reflected in the government -wide financial statements because the resources of those funds are not available to support the City's own programs. The City had one fiduciary fund for the year ended December 31, 2011 which was closed out during 2012. Page 4 Notes to the financial statements. The notes provide additional information that is essential to a full understanding of the data provided in the government -wide and fund financial statements. The notes to the financial statements can be found on pages 22 -55 of this report. Other information. The combining statements referred to earlier in connection with nonmajor governmental funds are presented following the basic financial statements. Combining and individual fund statements and schedules can be found on pages 59 -64 of this report. Government -wide Financial Analysis As noted earlier, net position may serve over time as a useful indicator of a government's financial position. In the case of the City, assets exceeded liabilities by $190,156,865 at the close of the most recent fiscal year. The largest portion of the City's net position (78 percent) reflects its investment in capital assets (e.g., land, buildings, machinery and equipment, infrastructure) less any related debt used to acquire those assets that is still outstanding. The City uses these capital assets to provide services to citizens; consequently, these assets are not available for future spending. Although the City's investment in capital assets is reported net of related debt, it should be noted that the resources needed to repay this debt must be provided from other sources, since the capital assets themselves cannot be used to liquidate these liabilities. Current and other assets Capital assets Total assets Long -term liabilities outstanding Other liabilities Total liabilities Net position: Net investment in capital assets Restricted Unrestricted Total net position City of Rosemount's Statement of Net Position Governmental Business -Type 2012 Governmental Business -Type 2011 Activities Activities Totals Activities Activities Totals $ 25,253,028 $ 19,665,889 $ 44,918,917 $ 27,564,908 $ 18,299,956 $ 45,864,864 70,161,203 97,287,487 167,448,690 68,169,312 95,281,215 163,450,527 95,414,231 116,953,376 212,367,607 95,734,220 113,581,171 209,315,391 16,255,911 3,978,507 20,234,418 17,907,196 4,769,809 22,677,005 1,750,460 225,864 1,976,324 1,870,813 343,418 2,214,231 18,006,371 4,204,371 22,210,742 19,778,009 5,113,227 24,891,236 54,828,890 93,501,405 148,330,295 53,419,036 90,695,202 144,114,238 6,608,554 - 6,608,554 5,764,792 - 5,764,792 15,970,416 19,247,600 35,218,016 16,772,383 17,772,742 34,545,125 $ 77,407,860 $ 112,749,005 $ 190,156,865 $ 75,956,211 $ 108,467,944 $ 184,424,155 An additional portion of the City's net position (3 percent) represents resources that are subject to external restrictions on how they may be used. The remaining balance representing unrestricted net position ($35,218,016) may be used to meet the government's ongoing obligations to citizens and creditors. At the end of the current fiscal year, the City is able to report positive balances in all three categories of net position, both for the government as a whole, as well as for its separate governmental and business -type activities. Page 5 Governmental activities. Governmental activities increased the City's net position by $1,451,649, accounting for 25 percent of the total growth in the government's net position. This compares to an increase (from governmental activities) of $6,941,466 in 2011. Revenues decreased by approximately $550,000 related to capital grant proceeds in 2012. Expenses increased by approximately $1,000,000 primarily due to a loss recorded on the disposal of property. The primary factor for overall decrease from 2011 however was that the amount of net transfers to business -type activities increased by approximately $3,900,000 due to the nature of the capital projects during 2012. Business -type activities. Business -type activities increased the City's net position by $4,281,061, accounting for 75 percent of the total growth in the government's net position. This compares to a decrease of $616,339 in 2011. The primary reasons for the current year increase was an increase in the net transfers from governmental activities of $3,900,000 and an increase in charges for services of approximately $800,000 related to increases in rates, usage, and service connections. Elements of these changes are as follows: City's Changes in Net Position Page 6 Business - Business -Type Governmental 2012 Governmental Type 2011 Activities Activities Totals Activities Activities Totals Revenues: Program revenues: Charges for services $ 2,881,953 $ 5,602,284 $ 8,484,237 $ 2,392,179 $ 4,759,365 $ 7,151,544 Operating grants and contributions 375,913 375,913 459,054 459,054 Capital grants and contributions 3,667,542 863,077 4,530,619 4,214,641 544,395 4,759,036 General revenues: Property taxes 11,039,475 11,039,475 11,202,224 11,202,224 Othertaxes 242,491 242,491 262,783 262,783 Investment income 136,310 256,852 393,162 243,193 377,868 621,061 Other 140,865 140,865 334,263 334,263 Total revenues 18,484,549 6,722,213 25,206,762 19,108,337 5,681,628 24,789,965 Expenses: General government 2,701,234 2,701,234 2,612,911 2,612,911 Public safety 3,872,633 3,872,633 3,763,742 3,763,742 Public works 4,341,203 4,341,203 4,336,345 4,336,345 Recreation 2,405, 676 2,405, 676 1,496,068 1,496,068 Community development 9,069 9,069 Interest on long -term debt 541,386 541,386 637,609 637,609 Water 1,827,543 1,827,543 1,792,613 1,792,613 Sewer 2,317,324 2,317,324 2,386,660 2,386,660 Storm water 968,935 968,935 950,114 950,114 Arena 498,118 498,118 479,707 479,707 Total expenses 13,862,132 5,611,920 19,474,052 12,855,744 5,609,094 18,464,838 Increase in net position before transfers 4,622,417 1,110,293 5,732,710 6,252,593 72,534 6,325,127 Transfers (3,170,768) 3,170,768 688,873 (688,873) Increase in net position 1,451,649 4,281,061 5,732,710 6,941,466 (616,339) 6,325,127 Net position - Beginning of Year 75,956,211 108,467,944 184,424,155 69,014,745 109,084,283 178,099,028 Net position - End of Year $ 77,407,860 $ 112,749,005 $ 190,156,865 $ 75,956,211 $ 108,467,944 $ 184,424,155 Page 6 .� �� F I �� -� �1 + I ..'� � 1 . �.} ■_� 1 I " �� — 1 � � �+ — -- —�7 1 s I �I A I I � I� I I II I I I I. 'I � .'ice "� � �'�• � � — -- — _��— - -�— — � -- �- ,I I a — _ _ � � }�� .�. �qr =-+4•s .- r —��} ' ■ - — — L J As of the end of the current fiscal year, the City's governmental funds reported combined ending fund balances of $19,817,270, a decrease of $1,995,883 in comparison with the prior year. $5,905,056 constitutes unassigned fund balance, which is available for spending at the government's discretion (this amount is entirely in the General Fund and is typically available to meet cash flow needs). A small amount ($90,623) is classified as nonspendable in regards to prepaid items, $5,080,900 is classified as restricted to meet debt service requirements and the remainder of the fund balance is considered to be committed or assigned and unavailable for discretionary spending. The General Fund is the chief operating fund of the City. At the end of the current fiscal year, unassigned fund balance of the General Fund was $5,905,056, while total fund balance reached $8,305,112. The following table shows year -end General Fund balances as compared to the adopted expenditure budget of the following year: Year Budget 2002 $ 6,501,600 2003 7,338,100 2004 7,409,400 2005 7,996,100 2006 8,516,300 2007 9,181,100 2008 10,574,900 2009 10,384,800 2010 10,466,000 2011 10,480,400 2012 10,531,800 2013 10,728,600 * This amount represents the unassigned General Fund balance Amount $ 5,126,656 4,061,256 4,383,289 4,511,547 4,806,577 5,747,445 5,688,243 5,693,475 5,731,123 5,700,071 5,905,056 Fund Balance Percent of Next Budget 70% 55% 55% 53% 52% 54% 55% 55% 55% 54% 55% During the current fiscal year, unassigned fund balance in the General Fund increased by $204,985. The increase was intentional as the City has determined, through the adoption of a formal Fund Balance Policy, it would like to maintain an unassigned fund balance of 55 percent of the next General Fund operating expenditure budget. Forty to fifty percent normally provides adequate working capital to finance General Fund operations until property taxes and state aids are received. The desired unassigned fund balance level also provides a certain amount of comfort that unforeseen emergencies can be addressed without causing an immediate financial crisis. As of December 31, 2012, 100 percent of the unassigned fund balance of the General Fund has been designated to meet working capital needs. The debt service fund balance decreased by $589,192 due to a bond call that occurred in 2012 (in addition to the normal debt payments). The capital projects fund balance decreased by $2,275,135 due to the extent of the spending of bond proceeds issued during 2011 and 2012 based on the nature /timing of various projects (capital outlay increased by approximately $2 million). The Port Authority TIF fund balance increased by $210,559 due to limited spending. Proprietary funds The City's proprietary funds provide the same type of information found in the government -wide statements, but in more detail. Unrestricted net position of the utility funds at the end of the year amounted to $18,985,803 while the arena fund had an unrestricted net position amounting to $261,797. The increase in total net position for the utility funds was $4,313,710 (of which approximately 90 percent related to capital contributions) and the decrease in total net position for the arena fund was $32,649. Page 9 General Fund Budgetary Highlights There were a few significant variances between final budgeted revenues and actual amounts. Actual building permit related revenues exceeded budgets by approximately $168,000 due to a significant increase in activity. Developer related administrative fees exceeded budgets by $97,000 because of new developments coming on line. Interest revenues were approximately $45,000 short of budget due to market conditions. All other revenue areas experienced either small surpluses or deficits that led to the final surplus amount. Overall, total department expenditures ended up being just above one and a half percent over budget with most being slightly less than budgeted and a few being just slightly over budget. The Government Buildings actual amount exceeded budget due to a year -end assignment for future debt service payments to the National Guard for the Community Center and the General Government actual total was over budget because of Wore related expenditures. Capital Asset and Debt Administration Capital assets The City's investment in capital assets for its governmental and business -type activities as of December 31, 2012, amounts to $167,448,690 (net of accumulated depreciation). This investment in capital assets includes land, buildings and structures, machinery and equipment, water, sewer, and storm water systems, infrastructure and construction in progress. Major capital assets events during the current fiscal year included the following: • Of the capital asset additions totaling $8,967,947 for the year, developers paid for approximately $2 million of them. Land Land improvements Buildings Machinery and equipment Mains and lines Infrastructure Construction in progress Accumulated depreciation Total capital assets City of Rosemount's Capital Assets (net of depreciation) Governmental Business -Type Activities Activities Totals $ 10,498,466 $ 2,643,767 2,425,671 - 13, 872, 836 11, 085, 341 9,248,133 2,831,379 - 127,054,137 51,804,234 2,100,911 (19,789,048) $ 70,161,203 1,682,616 (48,009,753) $ 97,287,487 $ 13,142,233 2,425,671 24,958,177 12,079,512 127, 054,137 51,804,234 3,783,527 (67,798,801) $ 167,448,690 Additional information on the City's capital assets can be found in Note IV.C. on pages 39 -40 of this report. Long -term debt At the end of the current fiscal year, the City had total bonded debt outstanding of $19,125,000 (including debt recorded in the Port Authority). Of this amount, $5,140,000 was for general obligation improvement debt which has financed special assessment construction as part the continuing development within the City. An additional $7,360,000 was general obligation debt issued by the Port Authority which financed the City's economic development and redevelopment programs. Another $3,785,000 was general obligation revenue bond debt issued to add to and improve the water and storm water utility systems within the City. The remaining $2,575,000 was general obligation and general obligation refunding debt. In addition, the City had $265,000 of equipment certificates outstanding at December 31, 2012. The City's total debt decreased by $2,395,000, or 11 percent, during the current fiscal year. The reason for this decrease was that there was only one new small debt issuance for new development, offset by a call on one debt issue in addition to the normally scheduled payments on existing debt. Page 10 Cities in Minnesota may issue general obligation debt up to a maximum of three percent of the total estimated market value of property within the city, per state statutes. The current debt limit for the City is $57,425,298. Of the City's $19,125,000 in outstanding general obligation debt at the current fiscal year end, $2,840,000 is subject to the restrictions placed by state statute. The City received a bond rating upgrade from Aa3 to Aa2 in 2010. These excellent ratings have had a positive effect on the sale of the City's bonds. Additional information on the City's long -term debt can be found in Note IV. E. on pages 43 -45 of this report. Economic Factors • Dakota County's unemployment rate ended the year at 4.8 percent, which compares favorably with the state unemployment rate of 5.5 percent, and the national unemployment rate of 7.6 percent. • City building permits were down slightly in quantity but up significantly in value in 2012, as compared to 2011. A total of 766 permits with a total valuation of $38,804,214 were issued in 2012. Requests for Information This financial report is designed to provide a general overview of the City's finances for all those with an interest in the government's finances. Questions concerning any of the information provided in this report or requests for additional information should be addressed to the Finance Director, City of Rosemount, 2875 145'" Street West, Rosemount, Minnesota 55068 -4997. Page 11 THIS PAGE INTENTIONALLY LEFT BLANK CITY OF ROSEMOUNT STATEMENT OF NET POSITION As of December 31, 2012 (With Summarized Information as of December 31, 2011) Total Assets 95,414,231 Business - 212,367,607 209,315,391 Governmental Type Totals Activities Activities 2012 2011 ASSETS 1,156,086 841,230 Accrued payroll and payroll taxes 107,766 Cash and investments $ 20,699,406 $ 17,539,451 $ 38,238,857 $ 39,171,939 Receivables 412,465 478,718 Unearned revenue 270,643 Taxes 688,481 - 688,481 788,095 Delinquent taxes 134,869 - 134,869 143,279 Accounts 593,015 919,331 1,512,346 1,386,518 Special assessments 2,757,804 448,888 3,206,692 3,535,331 Due from other governmental units 312,873 508,864 821,737 524,761 Internal balances (121,817) 121,817 - - Prepaid items 188,397 127,538 315,935 314,941 Capital assets: 6,608,554 5,764,792 Unrestricted 15,970,416 Land 10,498,466 2,643,767 13,142,233 13,142,233 Construction in progress 2,100,911 1,682,616 3,783,527 5,343,047 Land improvements 2,425,671 - 2,425,671 2,212,864 Buildings 13,872,836 11,085,341 24,958,177 25,591,173 Machinery and equipment 9,248,133 2,831,379 12,079,512 11,864,873 Infrastructure 51, 804,234 127, 054,137 178,858,371 170,263,650 Less: accumulated depreciation (19,789,048) (48,009,753) (67,798,801) (64,967,313) Total Assets 95,414,231 116,953,376 212,367,607 209,315,391 LIABILITIES Accounts payable 1,010,599 145,487 1,156,086 841,230 Accrued payroll and payroll taxes 107,766 29,364 137,130 107,976 Other accrued liabilities and deposits 361,452 51,013 412,465 478,718 Unearned revenue 270,643 - 270,643 786,307 Noncurrent liabilities: Due within one year 1,988,328 932,363 2,920,691 3,763,376 Due in more than one year 14,267,583 3,046,144 17,313,727 18,913,629 Total Liabilities 18,006,371 4,204,371 22,210,742 24,891,236 NET POSITION Net investment in capital assets 54,828,890 93,501,405 148,330,295 144,114,238 Restricted for debt service 6,608,554 - 6,608,554 5,764,792 Unrestricted 15,970,416 19,247,600 35,218,016 34,545,125 Total Net Position $ 77,407,860 $ 112,749,005 $ 190,156,865 $ 184,424,155 See accompanying notes to financial statements. Page 12 Z m O 2 W O w W O v N M E N U a) N W (h N F a > a) W Q U } 0 0 N Y Z -0 0 C 2 W o W r F a� —O C `o a LL N cu E E M N N (a O F- C c N @ O C C o E 0' a c � Z > O c_ (7 G N N a) O N T a c E F N W L ` a U N C U m cc C N E c '> 0 a y O U c C7 0 U y � G O m 5 C d E2 � U U U oy N U m .2 cc M U y y N cl W E O a` y c O U c LL Cr0 LOO T O M S W v LO m CO rn 1 m M V O O O M co P M c0 r 63 O CO O O IN .0 N O O N m M M r O C`i d7 O m O M V (O CO C co V M N co 63 64 CO CO 0 N CO d' O to l0 O N O CO N m co co r CO CO V CO M :;: co d c0 O M N 1 63 o ' M � N M (r0 O O M M 63 O $ O CO ' M N m r M N m N O M 63 N ;— V O ' M ccoo o OO v rn O V O (O N V 7 co N N 63 M M co r co N co N c0 M N O N N W M -t l OO N co V (N 63 c a7 E a 0 c O > N N N c U C6 :j N C N U C N N E m = m m c C m 4 Y 'O O C > O y O O N M N O U E7� y 3 y 2 N (7 E O U U w E >0 (9 aUUS CL OV a M COO M N v LO r u') M O O O O m � O r N V 00l M co o r N V co V O ( CI co r 0 O co O R _ —JI r N V co r � v v co M �- N V V [t oi V O (M V O (M M r C O O O l I N r I iM Cli co � N co rI O V C O O co 0 N V co .0 U d' 63 co a) U m ID T N F ca cc y y m 0 E c C O N ED' (5Cn 63 N :j N Q N C a) F- c c 0 7 C m E 0 � a O F- ° LO 00 M N O r O M O O CO N V O O M m V N N M O O W N V V o N O N W 631 63 �- It O r � N m r N M O Cn O U) co V0 v m O O N c,'? r � CO N d' O O M V M N O O N Cl) O r o ui v o O m 63 63 N ' ' O O V (O (O O N O V O O r O O m O co N O V N V � M Cl) a O N O z: 63 63 d' O_ r O co M m O r O d' V M O N r co M O N O O N O r M 0 co O r O C`') V M N r O M O O O C N .- M V 0 d' CD rS co 0 1-- 631 fA y 0 a N y U ID CL (a N W C � � m a N co c c m O O y N O "E O N N W c o m W N a) a) E N a) C O C j a) a) U y U O C o y @@ o o° 0 a m O r :a aci c w ° ccc ° Z N y o. o. (D y o 0 ..N.. 0 U Z O X O O` t N N C C H c m a` a O 'c @ U' ~ (7 f- c CD E N c N w 0 N C m C T c O. 0 m a) M m a m LO M EA 1LQ M O 0 N N c0 r 0 N N <Y O O M Cn d r r M O c0 O V C' r O O 63 co d O col ol N LD M N m O r r c ao v cc M co V O V r N O m a) U m ID T N F ca cc y y m 0 E c C O N ED' (5Cn 63 N :j N Q N C a) F- c c 0 7 C m E 0 � a O F- ° LO 00 M N O r O M O O CO N V O O M m V N N M O O W N V V o N O N W 631 63 �- It O r � N m r N M O Cn O U) co V0 v m O O N c,'? r � CO N d' O O M V M N O O N Cl) O r o ui v o O m 63 63 N ' ' O O V (O (O O N O V O O r O O m O co N O V N V � M Cl) a O N O z: 63 63 d' O_ r O co M m O r O d' V M O N r co M O N O O N O r M 0 co O r O C`') V M N r O M O O O C N .- M V 0 d' CD rS co 0 1-- 631 fA y 0 a N y U ID CL (a N W C � � m a N co c c m O O y N O "E O N N W c o m W N a) a) E N a) C O C j a) a) U y U O C o y @@ o o° 0 a m O r :a aci c w ° ccc ° Z N y o. o. (D y o 0 ..N.. 0 U Z O X O O` t N N C C H c m a` a O 'c @ U' ~ (7 f- c CD E N c N w 0 N C m C T c O. 0 m a) M m a CITY OF ROSEMOUNT BALANCE SHEET - GOVERNMENTAL FUNDS As of December 31, 2012 See accompanying notes to financial statements. Page 14 Port Other Total Authority Governmental Governmental General Debt Service Capital Projects TIF Funds Funds ASSETS Cash and investments $ 8,088,092 $ 4,296,057 $ 6,461,203 $ 886,114 $ 192,045 $ 19,923,511 Receivables from: Taxes 821,848 - - 1,502 - 823,350 Accounts 96,153 - 496,862 - 593,015 Special assessments 10,376 1,686,700 989,405 2,686,481 Delinquent special assessments 560 64,693 6,070 71,323 Due from other governmental units 10,191 - 302,682 312,873 Prepaid items 80,623 - 10,000 90,623 Total assets $ 9,107,843 $ 6,047,450 $ 8,266,222 $ 887,616 $ 192,045 $ 24,501,176 LIABILITIES AND FUND BALANCES Liabilities Accounts payable $ 352,818 $ - $ 643,778 $ - $ 738 $ 997,334 Accrued payroll and payroll taxes 107,766 - - 107,766 Deposits payable 138,510 - - 138,510 Deferred revenue 203,637 1,750,596 1,093,603 3,047,836 Unearned revenue - 103,570 167,073 270,643 Advances from other funds - - 121,817 121,817 Total liabilities 802,731 1,854,166 2,026,271 738 4,683,906 Fund Balances Nonspendable 80,623 - 10,000 - - 90,623 Restricted - 4,193,284 - 887,616 - 5,080,900 Committed - - - - 191,307 191,307 Assigned 2,319,433 6,229,951 - 8,549,384 Unassigned 5,905,056 - - - 5,905,056 Total fund balances 8,305,112 4,193,284 6,239,951 887,616 191,307 19,817,270 Total liabilities and fund balances $ 9,107,843 $ 6,047,450 $ 8,266,222 $ 887,616 $ 192,045 Amounts reported for governmental activities in the statement of net position are different because: Capital assets used in governmental funds are not financial resources and, therefore, are not reported in the funds. 70,161,203 Some receivables that are not currently available are reported as deferred revenue in the fund financial statements but are recognized as revenue when earned in the government -wide statements. 3,047,836 Internal service funds are reported in the statement of net position as governmental activities. 860,405 Some liabilities, including long -term debt, are not due and payable in the current period and, therefore, are not reported in the funds. See Note II.A. (16,478,854) NET POSITION OF GOVERNMENTAL ACTIVITIES $ 77,407,860 See accompanying notes to financial statements. Page 14 CITY OF ROSEMOUNT STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES - GOVERNMENTAL FUNDS For the Year Ended December 31, 2012 REVENUES Taxes Intergovernmental Public charges for services Licenses and permits Fines and forfeitures Special assessments Investment income and miscellaneous Total Revenues EXPENDITURES Current: General government Public safety Public works Parks and recreation Capital Outlay Debt Service: Principal retirement Interest and fiscal charges Total Expenditures Excess (deficiency) of revenues over expenditures OTHER FINANCING SOURCES (USES) Issuance of long -term debt Sale of capital assets Transfers in Transfers out Total Other Financing Sources Net Change in Fund Balance FUND BALANCES - Beginning FUND BALANCES - ENDING $ 8,305,112 $ 4,193,284 $ 6,239,951 $ 887,616 $ 191,307 $ 19,817,270 See accompanying notes to financial statements. Page 15 Port Other Total Authority Governmental Governmental General Debt Service Capital Projects TIF Funds Funds $ 8,673,013 $ 378,378 $ 1,266,948 $ 660,056 $ 58,600 $ 11,036,995 340,218 - 244,163 - - 584,381 1,080,023 - 1,193,608 - 3,420 2,277,051 484,644 - - - - 484,644 129,343 - - - 129,343 8,371 1,499,691 647,556 - - 2,155,618 192,015 8,646 1,570,858 1,131 599 1,773,249 10,907,627 1,886,715 4,923,133 661,187 62,619 18,441,281 2,400,271 - - 139,018 30,360 2,569,649 3,443,159 - 67,063 - - 3,510,222 3,010,658 140 22,142 - - 3,032,940 1,271,513 - - - - 1,271,513 19,900 - 8,076,966 - - 8,096,866 - 2,370,000 - 35,000 - 2,405,000 - 305,767 - 276,610 - 582,377 10,145,501 2,675,907 8,166,171 450,628 30,360 21,468,567 762,126 (789,192) (3,243,038) 210,559 32,259 (3,027,286) - - 810,000 - - 810,000 - - 12,740 - - 12,740 3,500 200,000 145,163 - - 348,663 (140,000) - - - - (140,000) (136,500) 200,000 967,903 - - 1,031,403 625,626 (589,192) (2,275,135) 210,559 32,259 (1,995,883) 7,679,486 4,782,476 8,515,086 677,057 159,048 21,813,153 FUND BALANCES - ENDING $ 8,305,112 $ 4,193,284 $ 6,239,951 $ 887,616 $ 191,307 $ 19,817,270 See accompanying notes to financial statements. Page 15 CITY OF ROSEMOUNT RECONCILIATION OF THE STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES OF GOVERNMENTAL FUNDS TO THE STATEMENT OF ACTIVITIES For the Year Ended December 31, 2012 Net change in fund balances - total governmental funds $ (1,995,883) Amounts reported for governmental activities in the statement of activities are different because: Governmental funds report capital outlays as expenditures. However, in the statement of net position the cost of these assets is capitalized and they are depreciated over their estimated useful lives with depreciation expense reported in the statement of activities. Capital outlay is reported as an expenditure in the fund financial statements but is capitalized in the government -wide financial statements 8,096,866 Depreciation is reported in the government -wide statements (1,792,723) Utility infrastructure constructed by capital projects funds not reported as governmental activities (3,379,431) In the statement of activities, the gain or loss ($904,132) on the disposal of capital assets is reported. In the fund financial statements, proceeds from the sale of capital assets ($12,740) are reported because the proceeds increase financial resources (916,872) Internal service funds are reported in the statement of activities. 56,006 Net effect of various miscellaneous transactions involving capital assets (i.e., sales, trade -ins) is to decrease net position. (15,949) Receivables not currently available are reported as deferred revenue in the fund financial statements but are recognized as revenue when earned in the government -wide financial statements. (287,193) Issuing debt provides current financial resources to governmental funds, but issuing debt increases long -term liabilities in the statement of net position. This is the amount of debt issued during the year. (810,000) Repayment of debt principal is an expenditure in the governmental funds, but the repayment reduces long -term liabilities in the statement of net position. This is the amount of principal payments paid. 2,405,000 Governmental funds report the effect of issuance costs, premiums, discounts, and similar items when debt is first issued, whereas these amounts are deferred and amortized in the statement of activities. 397 Some expenses in the statement of activities do not require the use of current financial resources and, therefore, are not reported as expenditures in the governmental funds. This is the change in the following liabilities. Compensated absences 55,888 Accrued interest on debt 35,543 CHANGE IN NET POSITION OF GOVERNMENTAL ACTIVITIES $ 1,451,649 See accompanying notes to financial statements. Page 16 CITY OF ROSEMOUNT STATEMENT OF NET POSITION - PROPRIETARY FUNDS As of December 31, 2012 Non - current assets: 60,730 Business -Type Activities - Enterprise Funds 22,111 145,487 Advance to other funds - 172,574 - 3,966 172,574 Governmental - Accrued interest 42,266 - 8,747 Land Activities - 547,158 1,095,981 562,683 Storm Non -major 352,378 Internal Service 790,588 Water Sewer Water Arena Totals Fund ASSETS 11,085,341 Mains and lines 20,065,741 16,380,844 24,616,262 - Current assets: Other improvements 16,528,701 36,927,460 12,535,129 - 65,991,290 Cash and investments $ 6,765,911 $ 6,030,061 $ 4,461,163 $ 282,316 $ 17,539,451 $ 775,895 Customer accounts receivable 388,277 334,286 196,768 - 919,331 - Special assessments receivable 186,380 210,198 52,310 - 448,888 28,992,998 Due from other governments - - 480,863 28,001 508,864 - Prepaid and other assets 12,361 92,757 16,103 6,317 127,538 97,774 Total current assets 7,352,929 6,667,302 5,207,207 316,634 19,544,072 873,669 Non - current assets: 60,730 25,203 37,443 22,111 145,487 Advance to other funds - 172,574 - 3,966 172,574 Property and equipment: - Accrued interest 42,266 - 8,747 Land 1,000,628 547,158 1,095,981 562,683 2,643,767 Construction in progress 352,378 539,650 790,588 - 1,682,616 Buildings 6,794,504 401,414 1,489,523 2,399,900 11,085,341 Mains and lines 20,065,741 16,380,844 24,616,262 - 61,062,847 Other improvements 16,528,701 36,927,460 12,535,129 - 65,991,290 Machinery and equipment 1,729,901 621,974 352,200 127,304 2,831,379 Less accumulated depreciation (12,642,712) (26,598,076) (7,800,139) (968,826) (48,009,753) Net property and equipment 33,829,141 28,820,424 33,079,544 1,558,378 97,287,487 Total non - current assets 33,829,141 28,992,998 33,079,544 1,558,378 97,460,061 - Total Assets 41,182,070 35,660,300 38,286,751 1,875,012 117,004,133 873,669 LIABILITIES Current liabilities Accounts payable 60,730 25,203 37,443 22,111 145,487 13,264 Accrued liabilities 15,625 5,558 3,966 4,215 29,364 - Accrued interest 42,266 - 8,747 - 51,013 Current portion of long term obligations 562,683 32,683 323,312 13,685 932,363 - Total current liabilities 681,304 63,444 373,468 40,011 1,158,227 13,264 Noncurrent liabilities: Accrued compensated absences 35,407 35,407 14,422 14,826 100,062 - General obligation debt 2,002,422 - 943,660 - 2,946,082 Advances from other funds 50,757 50,757 Total noncurrent liabilities 2,088,586 35,407 958,082 14,826 3,096,901 - Total Liabilities 2,769,890 98,851 1,331,550 54,837 4,255,128 13,264 NET POSITION Net investment in capital assets 31,296,719 28,820,424 31,825,884 1,558,378 93,501,405 - Unrestricted 7,115,461 6,741,025 5,129,317 261,797 19,247,600 860,405 TOTAL NET POSITION $ 38,412,180 $ 35,561,449 $ 36,955,201 $ 1,820,175 $ 112,749,005 $ 860,405 See accompanying notes to financial statements. Page 17 CITY OF ROSEMOUNT STATEMENT OF REVENUES, EXPENSES, AND CHANGES IN NET POSITION PROPRIETARY FUNDS For the Year Ended December 31, 2012 OPERATING REVENUES Charges for services Water meters Miscellaneous Total Operating Revenues OPERATING EXPENSES Personnel services Supplies Professional services and charges Other services and charges Metro sewer charges Depreciation Total Operating Expenses Operating Income (Loss) NONOPERATING REVENUES (EXPENSES) Connection fees Taxes Special assessments Intergovernmental Investment income Net increase in fair value of investments Loss from disposal of capital assets Surcharges and penalties Interest expense and fiscal agent fees Total Nonoperating Revenues Income (loss) before contributions and transfers Capital contributions Transfers in Transfers out Change in Net Position TOTAL NET POSITION - Beginning 19,481 (791,425) (22,931) (145,187) (940,062) (195,537) 382,547 Business -Type Activities - Enterprise Funds 769,701 - - - - Governmental 245,000 148,613 207,422 22,911 Activities - - 19,960 Storm Non -major - Internal Service Water Sewer Water Arena Totals Funds $ 1,695,397 $ 1,523,006 $ 914,412 $ 352,930 $ 4,485,745 $ 42,497 - - - 42,497 - - - - - - 77,449 1,737,894 1,523,006 914,412 352,930 4,528,242 77,449 425,411 427,324 176,470 197,846 1,227,051 - 152,049 13,210 7,611 16,525 189,395 4,455 101,489 14,751 48,143 41,468 205,851 26,128 281,438 68,695 109,619 187,247 646,999 242,403 - 940,900 - - 940,900 - 758,026 849,551 595,500 55,031 2,258,108 - 1,718,413 2,314,431 937,343 498,117 5,468,304 272,986 19,481 (791,425) (22,931) (145,187) (940,062) (195,537) 382,547 171,915 215,239 769,701 - - - - - 245,000 148,613 207,422 22,911 378,946 - 19,960 - - - 19,960 - 63,846 104,952 75,444 1,038 245,280 6,543 5,131 6,940 (499) - 11,572 - (739) - - - (739) - 286,116 12,809 5,416 - 304,341 - (108,391) (2,893) (31,591) - (142,875) - 797,083 501,145 286,920 1,038 1,586,186 251,543 816,564 (290,280) 263,989 (144,149) 646,124 56,006 895,683 748,041 2,199,876 - 3,843,600 - - - 148,000 115,000 263,000 - (348,000) (14,877) (105,286) (3,500) (471,663) - 1,364,247 442,884 2,506,579 (32,649) 4,281,061 56,006 37,047,933 35,118,565 34,448,622 1,852,824 108,467,944 804,399 TOTAL NET POSITION - ENDING $ 38,412,180 $ 35,561,449 $ 36,955,201 $ 1,820,175 $ 112,749,005 $ 860,405 See accompanying notes to financial statements. Page 18 H Z D O W U) O w LL O v V% N OEM = Z D E ULL a0i U- 0 Z W ry c W d W O `m Qa� F m � w 0 LL m C C ' > E .ym C LL C 0) > N U 0 Q C 0) U) @ O O_ m co E m O Q Z E `m O (>6 (n > 3= ins W 6 O O' ' ' ' O O O co co ' ' ' M N LO LO O Lo V O O O O 00 V 00 O 00 0) d' Ln O O O O O Ln LO V V M M O W I,- N LO Ln LO 00 O O 00 00 O LO O O t` I- O 7 V O O LO N r- r., 0) t` v N N `-' V' V I- N V f 9 64 69 69 C) O ' c)I MO M V' 00 ON O 000 N f` M O 1- CO -W co 00 00 LO V M C O M (_0 0 00 0 0 N V OO O) O LO V LOO CD r C) m r- N OIt' U) C') O V N LO V V O O W N V� O N O N O <!' t,- 0) M N N— co t� W K W O N W LO N I O W CD CO LO Oar W O O to 0 O O 0) N Md' co 0 0) Cl N N 4 00 LO N a0 f` LO 00 O Ln N r LO N OO vv It LO Ln 61) ... ffl E9 69 M (O O O ' ' ' ' O O O ' ' 00 co ' ' ' N N M O O (O co O 0) tt r M CO N O O O O Ln LO co M O O O O N M M O M M M O M B N LO co O O v N N N N V M CA N M M W co 00 co N N N N 69 E9 E9 69 (fl LO d'O .- ' ' ' MOO I. W C) Lo M OtO F- O co 00 q MO "t r� LO r- LO 00 0 It M OD O OD O 't O N O 7 n IS O O) t- O co 00 0 C t LO M N- co O W LO O O O O LO O N r- O O O) CO LO N 00 7 00 O O O co Ln N- V) �- O MME � W d' O LO .- C0 I- CA 00 ONO W V' N N N M O CO O OO V' 7 (O O r M N v v t M 6q 69 69 69 (9 Cl) f` N ' M ' ' ' co MON O) ' MLOM co V O O co r N (o OMM N O t` 00 N N M O O LO c-O W r O) W f` W a0 oc � N_ W O N 0 LO ON N Ln V N. V �t V' 0) W 7 � r N m O) N 0) 0) 00 O � 00 OD Cl) N N c O: V N 0) CM N M Cl) Cl) : V V 00 M N. M CO W C O Cl) 0) LO m 6r� 64 6 O M �-- LO ' ' n' ' O O C O O ' t` O M r -Co, M LO co O O O V O I- O Cl) O N co M N 00 N M C. Q' O O �O CA OO O O OO N d' m LO CO v W LO f` co CO N O co W O V O M M O Lf7 LO m N N tO st 0 LO M M 00 � co 7 M LO W v CO LO O O LO co LO N. N LO 04 v N N ._. M M (O M M 69 1 1 1 1 1 1 11 691 6911 69 1 69 N Q w � m � U _ H N N Q C Ue m T Z y O o E 0) W o. w 0 a E O U E2 > LL E .O 9 y O ° n E 3 LL a y m LL y O O = '>u a O y O 'm m m J2o.O.0 Q U U U Z U U) A) U Q O) U U) m C C LL 7 m � N (UO C C 0 O CD Z a ` c w °a) t s 10 O O 0) 7 0 o a N y 7 U a o O C > > L y N C N JD O _ ) O O O O O LL (a C O C w N > 0 0 0 n U >. C >. N N N a Co > CO c c Z O` N a N N a� <7012 N W LD Q O Ve -O C Z N F m c UJ ` O Z iZ y Oy 2 O .O N y w O O O O LL N y C LL N O O C y O m m o U LL Y Y y N > Z Q C U H U Q U c� a Z 0) Z c Q @ Z C LL LL a w y N a) N w m c @ CL @ acu o U F O > - m a Q N O so. y w 7 a O LL M C LL ca N a c C N p0(o)° Cj J m @ .N Or Q o Q Z U U y C N 7 � O W L O y O U'c a � C O( Co N m m a) U � c Z N Q N � C3 N U) � U C � Z Q Q U y N Q (D Z O c E m fn y N C CL I C 7 N Q E W y N o @ c U a c C O CO Z y y m U � O LL N m U 0 N E U) a- u) c 0) W L y m U a C @ L U 0) m @ a c c Cl) rn M o LO N LO E N C LL O O c N U C Q (D fA N co co M OOO V' O OC O�G cic VN'O M N ON OD MM Lo O!C co O c6 V' Il LO f� `� O 0 O V v N n r N N fA EA IZ NM -r O W M M M Ln to 0 V' p O I� O W N N C Cl) O r E LO O Q v Z csa � co O M ' V•I�M Lo M co O LC) O L O M M- n .- N O I- V In M E d LO LO r- O O N V' N Cn > LO co H3 H3 LC) co OD I- O N N CIL Co N V' N N N- M co It EA cA W (O ' N Co Lo Ln aoM N co NN co V' N V' C M O d= C� M co N N O N co ca 1 cn Q U F N w Z O O L- ~ to � � F U O- F>- Z w v o �Q y 00 o V Z J N N a) E z C ., U Z w 0 c F a QQ C ) O w O N O (6 y o m tNn N C O U O N N ZN N U O O N M N@ N N E r- G O U a N N N N O. N f6 Q E D) Li fd C c "6 C U N J LL C N U Q O (0 O CL CD 0 ` 0 CD ZN 66 O y Op MUL UL U pO Qo�LLZ rQOaQO¢ WLLOZQ U N C r f6 O) O C T N O w O C CC) M N d CO L O 0 c �m 1° o n � a c c � c as c c U C � -0 C >_ C U N N N > T O N W = co U N .�O E m cu O U O t = Z H I- N C O O N (6 �U C 66 C w O N N O O c .T ca CL E U co N U) O N (D O) w CL ASSETS Cash and investments LIABILITIES Due to M.A.A.G. CITY OF ROSEMOUNT STATEMENT OF NET POSITION FIDUCIARY FUND As of December 31, 2012 See accompanying notes to financial statements. M.A.A.G. Agency Fund Page 21 CITY OF ROSEMOUNT INDEX TO NOTES TO FINANCIAL STATEMENTS As of and for the Year Ended December 31, 2012 NOTE Paqe Summary of Significant Accounting Policies 23 A. Reporting Entity 23 B. Government -Wide and Fund Financial Statements 24 C. Measurement Focus, Basis of Accounting, 38 and Financial Statement Presentation 26 D. Assets, Liabilities, and Net Assets or Equity 28 1. Deposits and Investments 28 2. Receivables 29 3. Inventories and Prepaid Items 30 4. Capital Assets 31 5. Other Assets 32 6. Compensated Absences 32 7. Long -Term Obligations /Conduit Debt 32 8. Claims and Judgments 33 9. Equity Classifications 33 10. Prior Period Information 34 11. Basis for Existing Rates 34 Reconciliation of Government -Wide and Fund Financial Statements 35 A. Explanation of Certain Differences Between the Governmental Fund Balance Sheet and the Statement of Net Assets 35 III. Stewardship, Compliance, and Accountability 35 A. Budgetary Information 35 IV, Detailed Notes on All Funds 36 A. Deposits and Investments 36 B. Receivables 38 C. Capital Assets 39 D. Interfund Receivables /Payables and Transfers 41 E. Long -Term Obligations 43 F. Net Position /Fund Balances 44 V. Other Information 49 A. Employees' Retirement System 49 B. Risk Management 53 C. Commitments and Contingencies 54 D. Joint Powers Debt Commitment 54 E. Related Organization 55 F. Effect of New Accounting Standards on Current - Period Financial Statements 55 Page 22 CITY OF ROSEMOUNT NOTES TO FINANCIAL STATEMENTS As of and for the Year Ended December 31, 2012 NOTE I - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES The City of Rosemount, Minnesota (the "City") was formed and operates pursuant to applicable Minnesota laws and statutes. The governing body consists of a five - member City Council elected at large by voters of the City. City Council members serve four -year staggered terms and the mayor serves a four -year term coinciding with the terms of two of the Council members. Elections take place every two years. The accounting policies of the City conform to accounting principles generally accepted in the United States of America, as applicable to governmental units. The accepted standard - setting body for establishing governmental accounting and financial reporting principles in the Governmental Accounting Standards Board (GASB). A. REPORTING ENTITY This report includes all of the funds of the City of Rosemount. The reporting entity for the City consists of (a) the primary government, (b) organizations for which the primary government is financially accountable and (c) other organizations for which the nature and significance of their relationship with the primary government are such that their exclusion would cause the reporting entity's financial statements to be misleading or incomplete. A legally separate organization should be reported as a component unit if the elected officials of the primary government are financially accountable to the organization. The primary government is financially accountable if it appoints a voting majority of the organization's governing body and (1) it is able to impose its will on that organization or (2) there is a potential for the organization to provide specific financial benefits to or burdens on the primary government. The primary government may be financially accountable if an organization is fiscally dependent on the primary government. A legally separate, tax exempt organization should be reported as a component unit of a reporting entity if all of the following criteria are met: (1) the economic resources received or held by the separate organization are entirely or almost entirely for the direct benefit of the primary government, its component units, or its constituents; (2) the primary government is entitled to, or has the ability to otherwise access, a majority of the economic resources received or held by the separate organization; (3) the economic resources received or held by an individual organization that the specific primary government, or its component units, is entitled to, or has the ability to otherwise access, are significant to that primary government. Blended component units, although legally separate entities, are, in substance, part of the government's operations and are reported with similar funds of the primary government. Blended Component Unit Rosemount Port Authority The Port Authority serves all the citizens of the government and is governed by a board comprised of three of five of the government's elected council and four citizens appointed at large. The bond issuance authorizations are approved by the government's council and the legal liability for the general obligation portion of the Port Authority's debt remains with the government. The Port Authority is reported in the special revenue fund and in the debt service fund. Separate financial statements have not been prepared for the Rosemount Port Authority. Page 23 CITY OF ROSEMOUNT NOTES TO FINANCIAL STATEMENTS As of and for the Year Ended December 31, 2012 NOTE I — SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (cont.) B. GOVERNMENT -WIDE AND FUND FINANCIAL STATEMENTS In June 2011, the GASB issued statement No. 63 — Financial Reporting of Deferred Outflows of Resources, Deferred Inflows of Resources, and Net Position. This statement provides financial reporting guidance for deferred outflows of resources and deferred inflows of resources. Previous financial reporting standards did not include guidance for these elements, which are distinct from assets and liabilities. The City made the decision to implement this standard effective January 1, 2012. Government -Wide Financial Statements The statement of net position and statement of activities display information about the reporting government as a whole. They include all funds of the reporting entity except for fiduciary funds. The statements distinguish between governmental and business -type activities. Governmental activities generally are financed through taxes, intergovernmental revenues, and other nonexchange revenues. Business -type activities are financed in whole or in part by fees charged to external parties for goods or services. The statement of activities demonstrates the degree to which the direct expenses of a given function, or segment, are offset by program revenues. Direct expenses are those that are clearly identifiable with a specific function or segment. The City does not allocate indirect expenses to functions in the statement of activities. Program revenues include 1) charges to customers or applicants who purchase, use or directly benefit from goods, services, or privileges provided by a given function or segment, and 2) grants and contributions that are restricted to meeting the operational or capital requirements of a particular function or segment. Taxes and other items not included among program revenues are reported as general revenues. Internally dedicated resources are reported as general revenues rather than as program revenues. Fund Financial Statements Financial statements of the reporting entity are organized into funds, each of which is considered to be a separate accounting entity. Each fund is accounted for by providing a separate set of self - balancing accounts, which constitute its assets, liabilities, net position /fund equity, revenues, and expenditures /expenses. Separate financial statements are provided for governmental funds, proprietary funds and fiduciary funds, even though the latter are excluded from the government -wide financial statements. Major individual governmental funds and major individual enterprise funds are reported as separate columns in the fund financial statements. Funds are organized as major funds or non -major funds within the governmental and proprietary statements. An emphasis is placed on major funds within the governmental and proprietary categories. A fund is considered major if it is the primary operating fund of the City or meets the following criteria: a. Total assets /deferred outflows of resources, liabilities /deferred inflows of resources, revenues, or expenditures /expenses of that individual governmental or enterprise fund are at least 10 percent of the corresponding total for all funds of that category or type, and b. The same element of the individual governmental fund or enterprise fund that met the 10 percent testis at least 5 percent of the corresponding total for all governmental and enterprise funds combined. c. In addition, any other governmental or enterprise fund that the City believes is particularly important to financial statement users may be reported as a major fund. Page 24 CITY OF ROSEMOUNT NOTES TO FINANCIAL STATEMENTS As of and for the Year Ended December 31, 2012 NOTE I — SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (cont.) B. GOVERNMENT -WIDE AND FUND FINANCIAL STATEMENTS (cont.) Fund Financial Statements (cont.) The City reports the following major governmental funds: General Fund — accounts for the City's primary operating activities. It is used to account for all financial resources except those required to be accounted for in another fund. Debt Service Fund — used to account for and report financial resources that are restricted, committed, or assigned to expenditure for the payment of general long -term debt principal, interest, and related costs, other than enterprise debt. Capital Projects Fund — used to account for and report financial resources that are restricted, committed, or assigned to expenditures for capital outlays, including the acquisition or construction of capital facilities and other capital assets. The capital projects fund consists of one primary fund and three separate internal funds maintained by the City. Port Authority TIF Fund — used to account for and report financial resources that are restricted, committed, or assigned to expenditures related to the activities of the City's Downtown — Brockway TIF District. The City reports the following major enterprise funds: Water Utility — accounts for operations of the water system. Sewer Utility — accounts for operations of the sewer system. Storm Water Utility — accounts for operations of the storm water drainage system. The City reports the following non -major governmental and enterprise funds: Special Revenue Funds — used to account for and report the proceeds of specific revenue sources that are restricted or committed to expenditures for specified purposes (other than debt service or capital projects). Fire Safety Education Fund GIS Fund Port Authority General Fund Enterprise Funds — may be used to report any activity for which a fee is charged to external uses for goods or services, and must be used for activities which meet certain debt or cost recovery criteria. Arena Fund — accounts for the activities of the City's ice arena operations. Page 25 CITY OF ROSEMOUNT NOTES TO FINANCIAL STATEMENTS As of and for the Year Ended December 31, 2012 NOTE I — SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (cont.) B. GOVERNMENT -WIDE AND FUND FINANCIAL STATEMENTS (cont.) Fund Financial Statements (cont.) In addition, the City reports the following fund types: Internal service funds are used to account for the financing of goods and services provided by one department or agency to other departments or agencies of the City on a cost - reimbursement basis. Insurance Fund — accumulates resources to pay deductibles and uninsured claims, and pays for a majority of the general liability insurance and workers compensation insurance premiums for the City. Agency funds are used to account for assets held by the City in a trustee capacity or as an agent for individuals, private organizations, and /or other governmental units. M.A.A.G Fund — funds are held on behalf of the Mutual Aid Assistance Group (M.A.A.G.) which is a cooperative of various Dakota County police departments. During 2012, this fund was closed out as the City is no longer serving as the fiscal agent. C. MEASUREMENT FOCUS, BASIS OF ACCOUNTING AND FINANCIAL STATEMENT PRESENTATION Government -Wide Financial Statements The government -wide statement of net position and statement of activities are reported using the economic resources measurement focus and the accrual basis of accounting. Under the accrual basis of accounting, revenues are recognized when earned and expenses are recorded when the liability is incurred or economic asset used. Revenues, expenses, gains, losses, assets, and liabilities resulting from exchange and exchange - like transactions are recognized when the exchange takes place. Property taxes are recognized as revenues in the year for which they are levied. Grants and similar items are recognized as revenue as soon as all eligibility requirements imposed by the provider are met. Special assessments are recorded as revenue when earned. Unbilled receivables are recorded as revenues when services are provided. As a general rule, the effect of interfund activity has been eliminated from the government -wide financial statements. Exceptions to this general rule are charges between the City's water and sewer utility and various other functions of the government. Elimination of these charges would distort the direct costs and program revenues reported for the various functions concerned. Page 26 CITY OF ROSEMOUNT NOTES TO FINANCIAL STATEMENTS As of and for the Year Ended December 31, 2012 NOTE I — SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (cont.) C. MEASUREMENT FOCUS, BASIS OF ACCOUNTING AND FINANCIAL STATEMENT PRESENTATION (cont.) Fund Financial Statements Governmental fund financial statements are reported using the current financial resources measurement focus and the modified accrual basis of accounting. Revenues are recorded when they are both measurable and available. Available means collectible within the current period or soon enough thereafter to be used to pay liabilities of the current period. For this purpose, the City considers revenues to be available if they are collected within 60 days of the end of the current fiscal period. Expenditures are recorded when the related fund liability is incurred, except for unmatured interest on long -term debt, claims, judgments, compensated absences, and pension expenditures, which are recorded as a fund liability when expected to be paid with expendable available financial resources. Property taxes are recorded as receivables in the year levied. They are recognized as revenues when collected in the current year and in the first 60 days of the succeeding year. Intergovernmental aids and grants are recognized as revenues in the period the City is entitled to the resources and the amounts are available. Amounts owed to the City which are not available are recorded as receivables and deferred revenues. Amounts received prior to the entitlement period are also recorded as deferred revenues. Special assessments are recorded as revenues when they become measurable and available as current assets. Annual installments due in future years are reflected as receivables and deferred revenues. Revenues susceptible to accrual include property taxes, miscellaneous taxes, public charges for services, special assessments and interest. Other general revenues such as fines and forfeitures, inspection fees, recreation fees, and miscellaneous revenues are recognized when received in cash or when measurable and available under the criteria described above. The City reports deferred revenues on its governmental funds balance sheet. Deferred revenues arise from taxes levied in the current year which are for subsequent year's operations. For governmental fund financial statements, deferred revenues arise when a potential revenue does not meet both the "measurable" and "available" criteria for recognition in the current period. Deferred revenues also arise when resources are received before the City has a legal claim to them, as when grant monies are received prior to the incurrence of qualifying expenditures. In subsequent periods, when both revenue recognition criteria are met, or when the City has a legal claim to the resources, the liability for deferred revenue is removed from the balance sheet and revenue is recognized. Proprietary fund financial statements are reported using the economic resources measurement focus and the accrual basis of accounting, as described previously in this note. Agency funds follow the accrual basis of accounting, and do not have a measurement focus. Page 27 CITY OF ROSEMOUNT NOTES TO FINANCIAL STATEMENTS As of and for the Year Ended December 31, 2012 NOTE I — SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (cont.) C. MEASUREMENT FOCUS, BASIS OF ACCOUNTING AND FINANCIAL STATEMENT PRESENTATION (cont.) Fund Financial Statements (cont.) The proprietary funds distinguish operating revenues and expenses from nonoperating items. Operating revenues and expenses generally result from providing services and producing and delivering goods in connection with a proprietary fund's principal ongoing operations. The principal operating revenues of the water, sewer, storm water, and arena funds are charges to customers for sales and services. Special assessments are recorded as receivables and contribution revenue when levied. Operating expenses for proprietary funds include the cost of sales and services, administrative expenses, and depreciation on capital assets. All revenues and expenses not meeting this definition are reported as nonoperating revenues and expenses. All Financial Statements The preparation of financial statements in conformity with generally accepted accounting principles requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenditures /expenses during the reporting period. Actual results could differ from those estimates. D. ASSETS, DEFERRED OUTFLOWS OF RESOURCES, LIABILITIES, DEFERRED INFLOWS OF RESOURCES, AND NET POSITION OR EQUITY 1. Deposits and Investments For purposes of the statement of cash flows, the City considers all highly liquid investments with an initial maturity of three months or less when acquired to be cash equivalents. Investment of City funds is restricted by state statutes. Available investments are limited to: 1. Direct obligations or obligations guaranteed by the United States or its agencies, commercial paper, repurchase or reverse repurchase agreements with banks that are members of the Federal Reserve System with capitalization exceeding $10,000,000, a primary reporting dealer in U.S. Government Securities to the Federal Reserve Bank of New York or certain Minnesota brokers /dealers. 2. General obligations of the State of Minnesota or any of its municipalities. 3. Bankers acceptances of United States banks eligible for purchase by the Federal Reserve System. 4. Shares of investment companies registered under the Federal Investment Company Act of 1940 and whose only investments are direct obligations guaranteed by the United States or its agencies. Page 28 CITY OF ROSEMOUNT NOTES TO FINANCIAL STATEMENTS As of and for the Year Ended December 31, 2012 NOTE I — SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (cont.) D. ASSETS, DEFERRED OUTFLOWS OF RESOURCES, LIABILITIES, DEFERRED INFLOWS OF RESOURCES, AND NET POSITION OR EQUITY (cont.) 1. Deposits and Investments (cont.) The City has adopted an investment policy. The policy contains the following guidelines: Credit Risk - The policy follows state statutes for allowable investments except that it does not permit the purchase of shares of investment companies registered under the Federal Investment Company Act of 1940 whose only investments are direct obligations guaranteed by the United States or its agencies. Concentration of Credit Risk - The policy does not limit the amount the City may invest in any one issuer. Interest Rate Risk - As a means of limiting its exposure to fair value losses arising from rising interest rates, the City's investment policy limits the amount of investments with maturities of more than five years to 35% of the City's total investment portfolio (including certificates of deposit). Investments are stated at fair value, which is the amount at which an investment could be exchanged in a current transaction between willing parties. Fair values are based on quoted market prices. No investments are reported at amortized cost. Adjustments necessary to record investments at fair value are recorded in the operating statement as increases or decreases in investment income. Investment purchases are charged and maturities are deposited to the consolidated bank account. The purpose of this consolidation is to reduce administrative costs and to provide a single cash balance available for the maximization of investment earnings. Each fund shares in the investment earnings according to its average cash and investment balances. Cash is transferred from those funds with available cash resources to cover any negative cash balances in other funds at year -end. The difference between the bank balance and carrying value is due to outstanding checks and /or deposits in transit. See Note IV.A. for further information. 2. Receivables Property tax levies are set by the City Council in the fall each year and are certified to Dakota County for collection in the following year. In Minnesota, counties act as collection agents for all property taxes. The County spreads all levies over taxable property. Such taxes become a lien on January 1 and are recorded as receivables by the City at that date. Property taxes are accrued and recognized as revenue in the year collectible, net of delinquencies. Real property taxes may be paid by taxpayers in two equal installments on May 15 and October 15. Personal property taxes may be paid on February 28 and June 30. The County provides tax settlements to the City three times per year, in January, July, and December. Page 29 CITY OF ROSEMOUNT NOTES TO FINANCIAL STATEMENTS As of and for the Year Ended December 31, 2012 NOTE I — SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (cont.) D. ASSETS, DEFERRED OUTFLOWS OF RESOURCES, LIABILITIES, DEFERRED INFLOWS OF RESOURCES, AND NET POSITION OR EQUITY (cont.) 2. Receivables (cont.) Taxes which remain unpaid 60 days after year end are classified as delinquent taxes receivable and are fully offset by deferred revenue because they are not known to be available to finance current expenditures. Special assessments are levied against the benefited properties for the assessable costs of special assessments improvement projects in accordance with state statutes. The City usually adopts the assessment rolls when the individual projects are complete. The assessments are collectible over a term of years generally consistent with the term of years of the related bond issue. Collection of annual installments (including interest) is handled by the County in the same manner as property taxes. Property owners are allowed to prepay total future installments without interest or prepayment penalties. Special assessments receivable includes the following components: > Current - amount collected by Dakota County and not remitted to the City. > Delinquent - amounts billed to property owners but not paid. > Deferred - assessment installments, which will be billed to property owners in future years. > Other - assessments for which payment has been postponed based on council action. Accounts receivable are considered to be 100% collectible. During the course of operations, transactions occur between individual funds that may result in amounts owed between funds. Short -term interfund loans are reported as "due to and from other funds." Long -term interfund loans (noncurrent portion) are reported as "advances from and to other funds." Interfund receivables and payables between funds within governmental activities are eliminated in the statement of net assets. Any residual balances outstanding between the governmental activities and business -type activities are reported in the government -wide financial statements as "internal balances ". In the governmental fund financial statements, advances to other funds are offset equally by a nonspendable fund balance account which indicates that they do not constitute expendable available financial resources and, therefore, are not available for appropriation, or by a restricted fund balance account, if the funds will ultimately be restricted when the advance is repaid. 3. Inventories and Prepaid Items Governmental fund inventory items are charged to expenditure accounts when purchased. Year -end inventory was not significant. Proprietary fund inventories are generally used for construction and for operation and maintenance work. They are not for resale. They are valued at cost based on weighted average, and charged to construction and /or operation and maintenance expense when used. Certain payments to vendors reflect costs applicable to future accounting periods and are recorded as prepaid items in both government -wide and fund financial statements. Page 30 CITY OF ROSEMOUNT NOTES TO FINANCIAL STATEMENTS As of and for the Year Ended December 31, 2012 NOTE I — SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (cont.) D. ASSETS, DEFERRED OUTFLOWS OF RESOURCES, LIABILITIES, DEFERRED INFLOWS OF RESOURCES, AND NET POSITION OR EQUITY (cont.) 4. Capital Assets Government — Wide Statements Capital assets, which include property, plant and equipment, are reported in the government -wide financial statements. Capital assets are defined by the government as assets with an initial cost of more than $5,000 for general capital assets and infrastructure assets, and an estimated useful life in excess of one year. All capital assets are valued at historical cost or estimated historical cost if actual amounts are unavailable. Donated capital assets are recorded at their estimated fair value at the date of donation. Additions to and replacements of capital assets of business -type activities are recorded at original cost, which includes material, labor, overhead, and an allowance for the cost of funds used during construction when significant. For tax - exempt debt, the amount of interest capitalized equals the interest expense incurred during construction netted against any interest revenue from temporary investment of borrowed fund proceeds. No interest was capitalized during the current year. The cost of renewals and betterments relating to retirement units is added to plant accounts. The cost of property replaced retired or otherwise disposed of, is deducted from plant accounts and, generally, together with removal costs less salvage, is charged to accumulated depreciation. Depreciation of all exhaustible capital assets is recorded as an allocated expense in the statement of activities, with accumulated depreciation reflected in the statement of net position. Depreciation is provided over the assets' estimated useful lives using the straight -line method of depreciation. The range of estimated useful lives by type of asset is as follows: Buildings 30 -65 Years Machinery and equipment 4 -20 Years Other improvements 60 Years Utility system 65 Years Infrastructure 35 -50 Years Fund Financial Statements In the fund financial statements, capital assets used in governmental fund operations are accounted for as capital outlay expenditures of the governmental fund upon acquisition. Capital assets used in proprietary fund operations are accounted for the same way as in the government -wide statements. 5. Other Assets In governmental funds, debt issuance costs are recognized as expenditures in the current period. For the government -wide and the proprietary fund type financial statements, debt issuance costs are deferred and amortized over the term of the debt issue. Page 31 CITY OF ROSEMOUNT NOTES TO FINANCIAL STATEMENTS As of and for the Year Ended December 31, 2012 NOTE I — SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (cont.) D. ASSETS, DEFERRED OUTFLOWS OF RESOURCES, LIABILITIES, DEFERRED INFLOWS OF RESOURCES, AND NET POSITION OR EQUITY (cont.) 6. Deferred Outflows of Resources A deferred outflow of resources represents a consumption of net position that applies to a future period and will not be recognized as an outflow of resources (expense /expenditure) until that future time. 7. Compensated Absences Under terms of employment, employees are granted vacation, sick and comp time benefits in varying amounts. These benefits are based upon union contracts and City actions as applicable. Amounts carried forward for vacation and comp time accruals are governed by these contracts and actions. Sick pay accruals may be carried forward indefinitely. All vested vacation, sick leave and comp time pay is accrued when incurred in the government -wide and proprietary fund financial statements. A liability for these amounts is reported in governmental funds only if they have matured, for example, as a result of employee resignations and retirements, and are payable with expendable available resources. Payments for vacation, sick and comp time leave will be made at rates in effect when the benefits are used. Accumulated vacation, sick and comp time leave liabilities at December 31, 2012 are determined on the basis of current salary rates and include salary related payments. 8. Long -Term Obligations /Conduit Debt All long -term obligations to be repaid from governmental and business -type resources are reported as liabilities in the government -wide statements. The long -term obligations consist primarily of notes and bonds payable, and accrued compensated absences. Long -term obligations for governmental funds are not reported as liabilities in the fund financial statements. The face value of debts (plus any premiums) are reported as other financing sources and payments of principal and interest are reported as expenditures. The accounting in proprietary funds is the same as it is in the government -wide statements. For the government -wide statements and proprietary fund statements, bond premiums and discounts are deferred and amortized over the life of the issue using the effective interest method. Gains or losses on prior refundings are amortized over the remaining life of the old debt, or the life of the new debt, whichever is shorter. The balance at year end for both premiums /discounts and gains /losses, as applicable, is shown as an increase or decrease in the liability section of the statement of net assets. The City has approved the issuance of industrial revenue bonds (IRB) for the benefit of private business enterprises. IRB's are secured by mortgages or revenue agreements on the associated projects, and do not constitute indebtedness of the City. Accordingly, the bonds are not reported as liabilities in the accompanying financial statements. At year end, the aggregate principal amount for the five issues outstanding could not be determined; however, their original issue amounts totaled $14,294,720. Page 32 CITY OF ROSEMOUNT NOTES TO FINANCIAL STATEMENTS As of and for the Year Ended December 31, 2012 NOTE I — SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (cont.) D. ASSETS, DEFERRED OUTFLOWS OF RESOURCES, LIABILITIES, DEFERRED INFLOWS OF RESOURCES, AND NET POSITION OR EQUITY (cont.) 9. Claims and Judgments Claims and judgments are recorded as liabilities if all the conditions of Governmental Accounting Standards Board guidance are met. The liability and expenditure for claims and judgments are only reported in governmental funds if it has matured. Claims and judgments are recorded in the government -wide statements and proprietary funds as expenses when the related liabilities are incurred. There were no significant claims or judgments at year end. 10. Deferred Inflows of Resources A deferred inflow of resources represents an acquisition of net position that applies to a future period and therefore will be recognized as inflow of resources (revenue) until that future time. 11. Equity Classifications Government —Wide Statements Equity is classified as net position and displayed in three components: a. Net investment in capital assets — Consists of capital assets including restricted capital assets, net of accumulated depreciation and reduced by the outstanding balances (including unspent debt proceeds) of any bonds, mortgages, notes, or other borrowings that are attributable to the acquisition, construction, or improvement of those assets. b. Restricted net position — Consists of net position with constraints placed on their use either by 1) external groups such as creditors, grantors, contributors, or laws or regulations of other governments or, 2) law through constitutional provisions or enabling legislation. c. Unrestricted net position — All other net positions that do not meet the definitions of "restricted" or "net investment in capital assets." When both restricted and unrestricted resources are available for use, it is the City's policy to use restricted resources first, then unrestricted resources as they are needed. Fund Statements Governmental fund equity is classified as fund balance. In accordance with Governmental Accounting Standards Board Statement No. 54 - Fund Balance Reporting and Governmental Fund Type Definitions, the City classifies governmental fund balance as follows: a. Nonspendable - Includes fund balance amounts that cannot be spent either because they are not in spendable form or because legal or contractual requirements require them to be maintained intact. b. Restricted - Consists of fund balances with constraints placed on their use either by 1) external groups such as creditors, grantors, contributors, or laws or regulations of other governments or 2) law through constitutional provisions or enabling legislation. Page 33 CITY OF ROSEMOUNT NOTES TO FINANCIAL STATEMENTS As of and for the Year Ended December 31, 2012 NOTE f — SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (cont.) D. ASSETS, DEFERRED OUTFLOWS OF RESOURCES, LIABILITIES, DEFERRED INFLOWS OF RESOURCES, AND NET POSITION OR EQUITY (cont.) 11. Equity Classifications (cont.) Fund Statements (cont.) c. Committed - Includes fund balance amounts that are constrained for specific purposes that are internally imposed by the government through formal action of the highest level of decision making authority. Fund balance amounts are committed through a formal action (resolution) of the City. This formal action must occur prior to the end of the reporting period, but the amount of the commitment, which will be subject to the constraints, may be determined in the subsequent period. Any changes to the constraints imposed require the same formal action of the City that originally created the commitment. d. Assigned - Includes spendable fund balance amounts that are intended to be used for specific purposes that are not considered restricted or committed. Fund balance may be assigned through the following: 1) The City has authorized the Finance Director and /or Administrator to assign amounts for a specific purpose. 2) All remaining positive spendable amounts in governmental funds, other than the general fund, that are neither restricted or committed. Assignments may take place after the end of the reporting period. e. Unassigned - Includes residual positive fund balance within the general fund which has not been classified within the other above mentioned categories. Unassigned fund balance may also include negative balances for any governmental fund if expenditures exceed amounts restricted, committed, or assigned for those purposes. Proprietary fund equity is classified the same as in the government -wide statements. The City considers restricted amounts to be spent first when both restricted and unrestricted fund balance is available unless there are legal documents / contracts that prohibit doing this, such as in grant agreements requiring dollar for dollar spending. Additionally, the City would first use committed, then assigned and lastly unassigned amounts of unrestricted fund balance when expenditures are made. The City has a formal minimum fund balance policy. That policy is to maintain a working capital fund of 45 to 55 percent of the subsequent year's general fund expenditures. The balance at year end was $5,905,056, or 55 percent, and is included in unassigned general fund balance. 12. Prior Period Information The basic financial statements include certain prior -year summarized comparative information in total, but not at the level of detail required for a presentation in conformity with generally accepted accounting principles. Accordingly, such information should be read in conjunction with the government's financial statements for the year ended December 31, 2011, from which the summarized information was derived. 13. Basis for Existing Rates Current utility rates were approved by the City Council on December 6, 2011. Page 34 CITY OF ROSEMOUNT NOTES TO FINANCIAL STATEMENTS As of and for the Year Ended December 31, 2012 NOTE II - RECONCILIATION OF GOVERNMENT -WIDE AND FUND FINANCIAL STATEMENTS A. EXPLANATION OF CERTAIN DIFFERENCES BETWEEN THE GOVERNMENTAL FUND BALANCE SHEET AND THE STATEMENT OF NET POSITION The governmental fund balance sheet includes a reconciliation between fund balance — total governmental funds and net position — governmental activities as reported in the government -wide statement of net position. One element of that reconciliation explains that "Some liabilities, including long -term debt, are not due and payable in the current period and, therefore, are not reported in the funds ". The details of this $16,478,854 difference are as follows: Long -term liabilities applicable to the City's governmental activities are not due and payable in the current period, and accordingly, are not reported as fund liabilities. Interest on long -term debt is not accrued in governmental funds, but rather is recognized as an expenditure when due. All liabilities - both current and long- term - are reported in the statement of net position. Bonds and notes payable (excluding unspent capital related proceeds) $ 15,340,000 Compensated absences 923,598 Accrued interest 222,943 Unamortized debt discount and issuance costs (7,687) Combined Adjustment for Long -Term Liabilities $ 16,478,854 NOTE III - STEWARDSHIP, COMPLIANCE, AND ACCOUNTABILITY A. BUDGETARY INFORMATION Budgetary information is derived from the annual operating budget and is presented using the same basis of accounting for each fund as described in Note I. C. with departures from generally accepted accounting principles for encumbrances. Annual budgets have been adopted for the general fund and the capital project fund that is created by the following sub - funds, Building CIP, Street CIP and Equipment CIP. The remaining capital project sub funds adopt project - length budgets and therefore are not included in the annual budgeting process. Formal budgetary integration is not employed for debt service funds because effective budgetary control is alternatively achieved through general obligation bond indenture provisions. The budgeted amounts presented include any amendments made. The appropriated budget is prepared by fund, department and function. The legal level of budgetary control is at the department level. The City Council may authorize department heads to transfer budgeted appropriations within departments. The Council approved several supplemental budgetary appropriations during the year, but they were not considered material. Appropriations lapse at year end unless specifically carried over. Carryovers to the following year were $1,351,284. Page 35 CITY OF ROSEMOUNT NOTES TO FINANCIAL STATEMENTS As of and for the Year Ended December 31, 2012 NOTE IV - DETAILED NOTES ON ALL FUNDS A. DEPOSITS AND INVESTMENTS The City maintains a cash and investment pool that is available for use by all funds. Each fund type's portion of this pool is displayed on the statement of net position and balance sheet as cash and investments. In addition, investments are separately held by several of the City's funds. The City's cash and investments at year end were comprised of the following: Deposits in each local and area bank are insured by the FDIC in the amount of $250,000 for time and savings accounts (including NOW accounts), $250,000 for interest - bearing demand deposit accounts, and unlimited amounts for noninterest- bearing transaction accounts through December 31, 2012. On January 1, 2013, the temporary unlimited coverage for noninterest- bearing transaction accounts expired. Therefore, demand deposit accounts (interest- bearing and noninterest- bearing) are insured for a total of $250,000 beginning January 1, 2013. In addition, if deposits are held in an institution outside of the state in which the government is located, insured amounts are further limited to a total of $250,000 for the combined amount of all deposit accounts. The Securities Investor Protection Corporation (SIPC), created by the Securities Investor Protection Act of 1970, is an independent government- sponsored corporation (not an agency of the U.S. government). SIPC membership provides account protection up to a maximum of $500,000 per customer, of which $100,000 may be in cash. Custodial Credit Risk Deposits Custodial credit risk is the risk that in the event of a financial institution failure, the City's deposits may not be returned to the City. The City maintains collateral agreements with its banks. At December 31, 2012, the banks had pledged various government securities in the amount of $27,758,378 to secure the City's deposits. The City has no custodial credit risk exposure in regards to deposits at December 31, 2012. Investments For an investment, custodial credit risk is the risk that, in the event of the failure of the counterparty, the City will not be able to recover the value of its investments or collateral securities that are in the possession of an outside party. The City does not have any investments exposed to custodial credit risk. Page 36 Carrying Statement Associated Value Balance Risks Petty cash and cash on hand $ 2,400 $ 2,400 N/A Demand deposits 26,062,606 26,885,697 Custodial credit Custodial credit, credit, concentration of credit, U.S. instrumentalities 12,173,851 12,173,851 interest rate Total Cash and Investments $ 38,238,857 $ 39,061,948 Deposits in each local and area bank are insured by the FDIC in the amount of $250,000 for time and savings accounts (including NOW accounts), $250,000 for interest - bearing demand deposit accounts, and unlimited amounts for noninterest- bearing transaction accounts through December 31, 2012. On January 1, 2013, the temporary unlimited coverage for noninterest- bearing transaction accounts expired. Therefore, demand deposit accounts (interest- bearing and noninterest- bearing) are insured for a total of $250,000 beginning January 1, 2013. In addition, if deposits are held in an institution outside of the state in which the government is located, insured amounts are further limited to a total of $250,000 for the combined amount of all deposit accounts. The Securities Investor Protection Corporation (SIPC), created by the Securities Investor Protection Act of 1970, is an independent government- sponsored corporation (not an agency of the U.S. government). SIPC membership provides account protection up to a maximum of $500,000 per customer, of which $100,000 may be in cash. Custodial Credit Risk Deposits Custodial credit risk is the risk that in the event of a financial institution failure, the City's deposits may not be returned to the City. The City maintains collateral agreements with its banks. At December 31, 2012, the banks had pledged various government securities in the amount of $27,758,378 to secure the City's deposits. The City has no custodial credit risk exposure in regards to deposits at December 31, 2012. Investments For an investment, custodial credit risk is the risk that, in the event of the failure of the counterparty, the City will not be able to recover the value of its investments or collateral securities that are in the possession of an outside party. The City does not have any investments exposed to custodial credit risk. Page 36 CITY OF ROSEMOUNT NOTES TO FINANCIAL STATEMENTS As of and for the Year Ended December 31, 2012 NOTE IV — DETAILED NOTES ON ALL FUNDS (cont.) A. DEPOSITS AND INVESTMENTS (cunt.) Credit Risk Credit risk is the risk that an issuer or other counterparty to an investment will not fulfill its obligations. As of December 31, 2012, all of the City of Rosemount's investments were U.S. agency obligations which received AAA ratings from Standard & Poor's and /or Moody's Investors Service, respectively. Concentration of Credit Risk Concentration of credit risk is the risk of loss attributed to the magnitude of the City's investment in a single issuer. As of December 31, 2012, all of the City of Rosemount's investments were U.S. agency obligations, as follows: Issuer Fair Value Percentage of Total Federal Home Loan Bank $ 7,738,050 64% Federal Home Loan Mortgage Corporation 4,435,801 36% $ 12,173,851 Interest Rate Risk Interest rate risk is the risk that changes in interest rates will adversely affect the value of an investment. As of December 31, 2012, the City of Rosemount's investments were as follows: Investment Type U.S. Agency Obligations Investment Maturities (in years) Total Fair Less More Value than 1 1 -5 6 -10 than 10 $ 12,173,851 $ - $ - $ 12,173,851 $ - At December 31, 2012, the City held $11,671,096 in U.S. Agency Obligations that are callable at increasing stepped interest rates. See Note I.D.1 for further information on deposit and investment policies. Page 37 CITY OF ROSEMOUNT NOTES TO FINANCIAL STATEMENTS As of and for the Year Ended December 31, 2012 NOTE IV - DETAILED NOTES ON ALL FUNDS (cont.) B. RECEIVABLES Receivables as of year end for the government's individual major funds and non -major and internal service funds in the aggregate, including the applicable allowances for uncollectible accounts, are as follows: Governmental Activities Receivables: Taxes Accounts Special assessments Delinquent special assessments Due from other governments Total Receivables Amounts not expected to be collected within one year Business -Type Activities Receivables: Customer accounts Special assessments Due from other governments General Debt Service Capital Port Authority Projects TIF Totals $ 821,848 $ - $ - $ 1,502 $ 823,350 96,153 - 496,862 - 593,015 10,376 1,686,700 989,405 - 2,686,481 560 64,693 6,070 - 71,323 10,191 - 302,682 - 312,873 $ 939,128 $ 1,751,393 $ 1,795,019 $ 1,502 $ 4,487,042 $ 5,914 $ 961,419 $ 563,961 $ - $ 1,531,294 Nonmajor Water Sewer Storm Water Arena Utility Utility Utility Fund Totals 388,277 $ 334,286 $ 196,768 $ - $ 919,331 186,380 210,198 52,310 - 448,888 - - 480,863 28,001 508,864 Total Receivables $ 574,657 $ 544,484 $ 729,941 $ 28,001 $ 1,877,083 Amounts not expected to be collected within one year $ 106,237 $ 119,813 $ 411,197 $ - $ 637,247 Governmental funds report deferred revenue in connection with receivables for revenues that are not considered to be available to liquidate liabilities of the current period. Governmental funds also defer revenue recognition in connection with resources that have been received, but not yet earned. At the end of the current fiscal year, the various components of deferred revenue and unearned revenue reported in the governmental funds were as follows: Unavailable Unearned Totals Delinquent property taxes receivable $ 134,869 $ - $ 134,869 Delinquent special assessments 70,525 - 70,525 Special assessments not yet due 2,684,609 270,643 2,955,252 Grant funds received more than 60 days after year -end 100,000 - 100,000 Donations receivable for future projects 57,833 - 57,833 Total Deferred /Unearned Revenue for Governmental Funds $ 3,047,836 $ 270,643 $ 3,318,479 Page 38 CITY OF ROSEMOUNT NOTES TO FINANCIAL STATEMENTS As of and for the Year Ended December 31, 2012 NOTE IV — DETAILED NOTES ON ALL FUNDS (cont.) C. CAPITAL ASSETS Capital asset activity for the year ended December 31, 2012 was as follows: Governmental Activities Capital assets not being depreciated: Land Land improvements Construction in progress Total Capital Assets Not Being Depreciated Capital assets being depreciated: Improvements Buildings Machinery and equipment Infrastructure Roads Bridges Parking lots Total Capital Assets Being Depreciated Less: Accumulated depreciation for: Improvements Buildings Machinery and equipment Infrastructure Roads Bridges Parking lots Total Accumulated Depreciation Net Capital Assets Being Depreciated Total Governmental Activities Capital Assets, Net of Depreciation Beginning Ending Balance Additions Deletions Balance $ 10,498,466 $ - $ - $ 10,498,466 - 159,745 - 159,745 2,726,013 4,200,344 4,825,446 2,100,911 13,224,479 4,360,089 4,825,446 12,759,122 2,212,864 53,062 - 2,265,926 14,505,832 242,836 875,832 13,872,836 9,121,191 510,850 383,908 9,248,133 - 90,941 - 90,941 45,978,528 4,132,495 866,102 49,244,921 1,887,923 - - 1,887,923 442,449 138,000 - 580,449 74,148,787 5,168,184 2,125,842 77,191,129 $ (865,540) $ (96,044) $ - $ (961,584) (3,958,655) (289,190) (137,214) (4,110,631) (5,941,560) (545,968) (361,494) (6,126,034) - (466) - (466) (7,966,810) (799,598) (708,921) (8,057,487) (290,432) (47,198) - (337,630) (180,957) (14,259) - (195,216) (19,203,954) (1,792,723) (1,207,629) (19,789,048) 54,944,833 3,375,461 918,213 57,402,081 $ 68,169,312 $ 7,735,550 $ 5,743,659 $ 70,161,203 Depreciation expense was charged to functions as follows: Governmental Activities General government Public safety Public works, which includes the depreciation of roads, bridges and parking lots Leisure activities Total Governmental Activities Depreciation Expense $ 201,637 298,953 1,105,229 186,904 $ 1,792,723 Page 39 CITY OF ROSEMOUNT NOTES TO FINANCIAL STATEMENTS As of and for the Year Ended December 31, 2012 NOTE IV — DETAILED NOTES ON ALL FUNDS (cont.) C. CAPITAL ASSETS (cont.) Business -Type Activities Capital assets not being depreciated: Land Construction in progress Total Capital Assets Not Being Depreciated Capital Assets Being Depreciated: Buildings Machinery and equipment Mains and lines Total Capital Assets Being Depreciated Less: Accumulated depreciation for: Buildings Machinery and equipment Mains and lines Total Accumulated Depreciation Net Capital Assets Being Depreciated Total Business -Type Capital Assets, Net of Depreciation Beginning Ending Balance Additions Deletions Balance $ 2,643,767 $ - $ - $ 2,643,767 2,617,034 4,164,969 5,099,387 1,682,616 5,260,801 4,164,969 5,099,387 4,326,383 11,085,341 - - 11,085,341 2,743,682 100,151 12,454 2,831,379 121,954,750 5,099,387 - 127,054,137 135,783,773 5,199,538 12,454 140,970,857 $ (2,460,342) $ (236,588) $ - $ (2,696,930) (1,764,764) (145,418) (11,714) (1,898,468) (41,538,253) (1,876,102) - (43,414,355) (45,763,359) (2,258,108) (11,714) (48,009,753) 90,020,414 2,941,430 740 92,961,104 $ 95,281,215 $ 7,106,399 $ 5,100,127 $ 97,287,487 Depreciation expense was charged to functions as follows: Business -Type Activities Water Sewer Storm water Arena Total Business -type Activities Depreciation Expense $ 758,026 849,551 595,500 55,031 $ 2,258,108 Page 40 CITY OF ROSEMOUNT NOTES TO FINANCIAL STATEMENTS As of and for the Year Ended December 31, 2012 NOTE IV — DETAILED NOTES ON ALL FUNDS (cont.) D. INTERFUND RECEIVABLES /PAYABLES AND TRANSFERS The following is a schedule of interfund receivable /advances as of December 31, 2012: Receivable Fund Payable Fund Sewer Building CIP Sewer Water Subtotal — Fund financial statements Less: Fund eliminations Total — Government -Wide Statement of Net Position Amount Not Due Within Amount One Year $ 121,817 $ 103,890 50,757 43,304 172,574 147,194 (50,757) (43,304) $ 121,817 $ 103,890 The principal purpose of these interfund loans was to finance the public works building expansion in 1999, and to purchase and renovate a building in the Downtown- Brockway Tax Increment Financing District in 2005. For the statement of net position, interfund balances which are owed within the governmental activities or business -type activities are netted and eliminated. The sewer fund advanced funds to the water fund and capital projects fund. The sewer fund is charging the other funds interest on the advance based on the average outstanding advance balance during the year at a rate of 5 %. Following is a detailed repayment schedule for the sewer fund advance: Page 41 Principal Interest Totals 2013 $ 25,371 $ 8,629 $ 34,000 2014 26,640 7,360 34,000 2015 27,972 6,028 34,000 2016 29,370 4,630 34,000 2017 30,839 3,161 34,000 2018 32,382 1,618 34,000 Total $ 172,574 $ 31,426 $ 204,000 Page 41 CITY OF ROSEMOUNT NOTES TO FINANCIAL STATEMENTS As of and for the Year Ended December 31, 2012 NOTE IV — DETAILED NOTES ON ALL FUNDS (cont.) D. INTERFUND RECEIVABLES /PAYABLES AND TRANSFERS (cont.) The following is a schedule of interfund transfers: Fund Transferred To Fund Transferred From Amount Principal Purpose General Arena $ 3,500 Building and grounds maintenance Debt Service Water 200,000 Water share of debt payment Capital Projects Sewer 14,877 Sewer share of project and to close construction funds Storm Water 105,286 Storm water share of project General 25,000 Future improvements Enterprise Storm Water Water 148,000 Water share of debt payments Arena General 115,000 Operating expenses 611,663 Less: Fund eliminations (173,000) Less: Contributed plant reclassified to a transfer in the government -wide statements (3,609,431) Total Transfers — Government -Wide Statement of Activities $ (3,170,768) Generally, transfers are used to (1) move revenues from the fund that collects them to the fund that the budget requires to expend them, (2) move receipts restricted to debt service from the funds collecting the receipts to the debt service fund, and (3) use unrestricted revenues collected in the general fund to finance various programs accounted for in other funds in accordance with budgetary authorizations. For the statement of activities, interfund transfers within the governmental activities or business -type activities are netted and eliminated. Page 42 CITY OF ROSEMOUNT NOTES TO FINANCIAL STATEMENTS As of and for the Year Ended December 31, 2012 NOTE IV — DETAILED NOTES ON ALL FUNDS (cont.) E. LONG -TERM OBLIGATIONS Long -term obligations activity for the year ended December 31, 2012 was as follows: Other Liabilities Vested compensated absences 979,486 414,266 470,154 923,598 Amounts Total Governmental Activities Beginning Ending Due Within Long -Term Liabilities $ Balance Increases Decreases Balance One Year GOVERNMENTAL ACTIVITIES Bonds and Notes Payable: General obligation debt $ 16,935,000 $ 810,000 $ 2,405,000 $ 15,340,000 $ 1,545,000 Net discount (7,290) (397) - (7,687) - Sub -total 16,927,710 809,603 2,405,000 15,332,313 1,545,000 Other Liabilities Vested compensated absences 979,486 414,266 470,154 923,598 443,328 Total Governmental Activities Long -Term Liabilities $ 17,907,196 $ 1,223,869 $ 2,875,154 $ 16,255,911 $ 1,988,328 BUSINESS -TYPE ACTIVITIES Bonds and Notes Payable: General obligation debt $ 4,585,000 $ - $ 800,000 $ 3,785,000 $ 840,000 Net discount/premium 1,013 - (69) 1,082 - Sub -total 4,586,013 - 799,931 3,786,082 840,000 Other Liabilities: Vested compensated absences 183,796 96,851 88,222 192,425 92,363 Total Business -Type Activities Long -Term Liabilities $ 4,769,809 $ 96,851 $ 888,153 $ 3,978,507 $ 932,363 Page 43 CITY OF ROSEMOUNT NOTES TO FINANCIAL STATEMENTS As of and for the Year Ended December 31, 2012 NOTE IV - DETAILED NOTES ON ALL FUNDS (cont.) E. LONG -TERM OBLIGATIONS (cont.) General Obligation Debt The City issues general obligation debt to provide funds for the acquisition and construction of major capital facilities. All general obligation notes and bonds payable are backed by the full faith and credit of the City. Notes and bonds in the governmental funds will be retired by future property tax levies or tax increments accumulated by the debt service fund. Business -type activities debt is payable by revenues from user fees of those funds or, if the revenues are not sufficient, by future tax levies. Governmental Activities Date of Final Interest Original Interest Balance General Obligation Debt Issue Maturity Rates Indebtedness 1,580,000 12 -31 -12 Refunding Bonds, Series 2001 E 2001 2013 3.1 % to 4.6% $ 725,000 $ 85,000 Fire Station CIP Bonds, Series 2005A 2005 2025 3.5% to 4.3% 2,630,000 315,000 2,000,000 Fire Station Refunding Bonds, Series 2005D 2005 2016 3.2% to 3.8% 1,115,000 660,893 490,000 Improvement Bonds, Series 2006B 2006 2017 4.0% 4,405,000 $ 15,340,000 2,250,000 Equipment Certificates, Series 2007B 2007 2013 3.5% to 3.6% 450,000 100,000 Equipment Certificates, Series 2008A 2008 2014 3.99% 385,000 165,000 Port Authority TIF, Series 2008A 2008 2024 5.0% to 5.5% 2,765,000 2,730,000 Port Authority TI F, Series 2008B 2008 2032 4.0% to 4.1 % 3,275,000 3,275,000 Crossover Refunding Bonds, Series 2010B 2010 2022 1.2% to 3.7% 1,355,000 1,355,000 Improvement Bonds, Series 2011A 2011 2017 0.45% to 1.35% 2,080,000 2,080,000 Improvement Bonds, Series 2012A 2012 2018 0.4% to 1.0% 810,000 810,000 Total Governmental Activities - General Obligation Debt $ 15,340,000 Business -Type Activities Date of Final Interest Original Balance General Obligation Debt Issue Maturity Rates Indebtedness 12 -31 -12 Water Revenue Bonds, Series 2000A 2000 2016 4.4% to 5.4% $ 1,160,000 $ 410,000 Water Revenue Bonds, Series 2005C 2005 2016 3.5% to 3.8% 2,990,000 1,325,000 Water Revenue Bonds, Series 2007A 2007 2018 4.0% 1,210,000 795,000 Utility Rev Refunding Bonds, Series 2010A 2010 2018 0.8% to 2.6% 1,545,000 1,255,000 Total Business -Type Activities - General Obligation Debt $ 3,785,000 Debt service requirements to maturity are as follows: Year 2013 2014 2015 2016 2017 2018-2022 2023- 2027 2028- 2032 Totals Governmental Activities Business -Type Activities General Obligation Debt General Obligation Debt Principal Interest Principal Interest $ 1,545,000 $ 515,815 $ 840,000 $ 110,313 1,580,000 473,854 860,000 85,315 1,555,000 430,571 745,000 59,328 1,625,000 386,338 775,000 32,188 1,555,000 340,234 315,000 13,343 3,030,000 1,283,520 250,000 4,265 2,305,000 660,893 - - 2,145,000 224,269 - - $ 15,340,000 $ 4,315,494 $ 3,785,000 $ 304,752 The City paid off the remaining balance on the 2005C bonds on February 1, 2013. Page 44 CITY OF ROSEMOUNT NOTES TO FINANCIAL STATEMENTS As of and for the Year Ended December 31, 2012 NOTE IV — DETAILED NOTES ON ALL FUNDS (cont.) E. LONG -TERM OBLIGATIONS (cont.) General Obligation Debt (cont.) Other Debt Information Estimated payments of compensated absences are not included in the debt service requirement schedules. The compensated absences liability attributable to governmental activities will be liquidated primarily by the general fund. There are a number of limitations and restrictions contained in the various bond indentures and loan agreements. The City believes it is in compliance with all significant limitations and restrictions, including federal arbitrage regulations. The water and storm water utilities have pledged future water and storm water revenues net of specified operating expenses to repay $6,905,000 in water and storm water revenue bonds issued in 2000, 2005, 2007, and 2010. Proceeds from bonds provided financing for utility improvements. The bonds are payable solely from water and storm water revenues and are payable through 2018. Annual principal and interest payments on the bonds are expected to require 25% of net revenues. The total principal and interest remaining to be paid on the bonds is $4,089,752. Scheduled principal and interest paid for the current year and the gross customer revenues were $933,478 and $3,713,148, respectively. Crossover Refunding On December 1, 2010, the City issued $1,355,000 in general obligation public facility refunding bonds with an average interest rate of 2.9% to crossover refund $1,370,000 of outstanding 2001C general obligation public facilities bonds with an average interest rate of 4.5 %. The net proceeds of $1,310,503 (after underwriter's discount of $11,179, issuance costs of $34,732 and accrued interest of $1,414) were placed on deposit with an escrow agent to payoff /call the 2001 C general obligation public facilities bonds on February 1, 2012. The cash flow requirements on the refunding bonds and notes prior to the crossover refunding were $1,936,203 from 2011 through 2022. The cash flow requirements on the 2010 refunding bonds are $1,872,715 from 2011 through 2022. The crossover refunding results in an economic gain (difference between the present value of the debt service payments on the old and new debt) of $55,287. Page 45 CITY OF ROSEMOUNT NOTES TO FINANCIAL STATEMENTS As of and for the Year Ended December 31, 2012 NOTE IV — DETAILED NOTES ON ALL FUNDS (cont.) F. NET POSITION /FUND BALANCES Net position reported on the government -wide statement of net position at December 31, 2012 includes the following: Governmental Activities Net Investment in Capital Assets Land $ 10,498,466 Construction in progress 2,100,911 Other capital assets, net of accumulated depreciation 57,561,826 Less: related long -term debt outstanding (excluding unspent capital related debt proceeds) (15,332,313) Total Net Investment in Capital Assets 54,828,890 Restricted for debt service 6,608,554 Unrestricted 15,970,416 Total Governmental Activities Net Position $ 77,407,860 Governmental fund balances reported on the fund financial statements at December 31, 2012 include the following: Non - spendable fund balance as of December 31, 2012, includes the following items: Fund Major Funds Amount Restriction General $ 80,623 Prepaid items Capital Projects 10,000 Prepaid items Total $ 90,623 Restricted fund balance as of December 31, 2012, includes the following items: Fund Major Funds Debt Service Port Authority TIF Total Amount Restriction $ 4,193,284 Future debt service 887,616 Future debt service $ 5,080,900 Page 46 CITY OF ROSEMOUNT NOTES TO FINANCIAL STATEMENTS As of and for the Year Ended December 31, 2012 NOTE IV — DETAILED NOTES ON ALL FUNDS (cont.) F. NET POSITION /FUND BALANCES (cont.) Governmental Activities (cont.) Committed fund balance as of December 31, 2012, includes the following items: Fund Non -Major Special Revenue Funds Amount Purpose Fire Safety Education $ 868 Fund related expenditures GIS 7,828 Fund related expenditures Port Authority General 182,611 Fund related expenditures Total $ 191,307 Assigned fund balance as of December 31, 2012, includes the following items: Fund Amount Purpose Major Funds General Fund $ 923,598 430,000 225,000 144,572 139,400 131,733 325,130 Total General Fund 2,319,433 Capital Projects Fund Compensated absences Armory debt payments Health insurance Building maintenance Park maintenance Election equipment Various projects / equipment $ 377,670 Building CIP 375,959 Street CIP 472,643 Equipment CIP 5,003,679 Various projects Total Capital Projects Fund 6,229,951 Total $ 8,549,384 Page 47 CITY OF ROSEMOUNT NOTES TO FINANCIAL STATEMENTS As of and for the Year Ended December 31, 2012 NOTE IV — DETAILED NOTES ON ALL FUNDS (cont.) F. NET POSITION /FUND BALANCES (cont.) Governmental Activities (cont.) Unassigned fund balance as of December 31, 2012, includes the following items: Fund Amount Major Funds General $ 5,905,056 Total $ 5,905,056 Business -Type Activities Net Investment in Capital Assets Land $ 2,643,767 Construction in progress 1,682,616 Other capital assets, net of accumulated depreciation 92,961,104 Less: related long -term debt outstanding (excluding unspent capital related debt proceeds) (3,786,082) Total Net Investment in Capital Assets 93,501,405 Unrestricted 19,247,600 Total Business -Type Activities Net Position $ 112,749,005 Page 48 CITY OF ROSEMOUNT NOTES TO FINANCIAL STATEMENTS As of and for the Year Ended December 31, 2012 NOTE V - OTHER INFORMATION A. EMPLOYEES' RETIREMENT SYSTEM City employees and firefighters participate in the pension plans administered by the Public Employees Retirement Association of Minnesota (PERA) and the Rosemount Volunteer Fire Relief Association. In accordance with GASB Statement No. 27, the PERA plans are classified as multiple - employer, cost - sharing plans, and the Association's plan is classified as a single - employer plan. 1. Public Employees Retirement Association a. Plan Description All full -time and certain part -time employees of the City of Rosemount, Minnesota are covered by defined benefit plans administered by the Public Employees Retirement Association of Minnesota (PERA). PERA administers the General Employees Retirement Fund (GERF) and the Public Employees Police and Fire Fund (PEPFF) which are cost - sharing, multiple - employer retirement plans. These plans are established and administered in accordance with Minnesota Statutes, Chapters 353 and 356. GERF members belong to either the Coordinated Plan or the Basic Plan. Coordinated Plan members are covered by Social Security and Basic Plan members are not. All new members must participate in the Coordinated Plan. All police officers, firefighters and peace officers who qualify for membership by statute are covered by the PEPFF. PERA provides retirement benefits as well as disability benefits to members, and benefits to survivors upon death of eligible members. Benefits are established by State Statute, and vest after three years of credited service. The defined retirement benefits are based on a member's highest average salary for any five successive years of allowable service, age, and years of credit at termination of service. Two methods are used to compute benefits for PERA's Coordinated and Basic Plan members. The retiring member receives the higher of a step -rate benefit accrual formula (Method 1) or a level accrual formula (Method 2). Under Method 1, the annuity accrual rate for a Basic Plan member is 2.2 percent of average salary for each of the first 10 years of service and 2.7 percent for each remaining year. The annuity accrual rate for Coordinated Plan member is 1.2 percent of average salary for each of the first 10 years and 1.7 percent for each remaining year. Under Method 2, the annuity accrual rate is 2.7 percent of average salary for Basic Plan members and 1.7 percent for Coordinated Plan members for each year of service. For PEPFF members, the annuity accrual rate is 3.0 percent for each year of service. For all PEPFF members and for GERF members whose annuity is calculated using Method 1, a full annuity is available when age plus years of service equal 90. A reduced retirement annuity is also available to eligible members seeking early retirement. Page 49 CITY OF ROSEMOUNT NOTES TO FINANCIAL STATEMENTS As of and for the Year Ended December 31, 2012 NOTE V — OTHER INFORMATION (cont.) A. EMPLOYEES' RETIREMENT SYSTEM (cont.) 1. Public Employees Retirement Association (cont.) a. Plan Description (cont.) There are different types of annuities available to members upon retirement. A normal annuity is a lifetime annuity that ceases upon the death of the retiree — no survivor annuity is payable. There are also various types of joint and survivor annuity options available which will reduce the monthly normal annuity amount, because the annuity is payable over joint lives. Members may also leave their contributions in the fund upon termination of public service in order to qualify for a deferred annuity at retirement age. Refunds of contributions are available at any time to members who leave public service, but before retirement benefits begin. The benefit provisions stated in the previous paragraphs of this section are current provisions and apply to active plan participants. Vested, terminated employees who are entitled to benefits but are not receiving them yet are bound by the provisions in effect at the time they last terminated their public service. PERA issues a publicly available financial report that includes financial statements and required supplementary information for GERF and PEPFF. That report may be obtained on the Internet at www.mnpera.org, by writing to PERA at 60 Empire Drive #200, St. Paul, Minnesota, 55103 -2088 or by calling (651) 296 -7460 or 1- 800 - 652 -9026. b. Funding Policy Minnesota Statutes Chapter 353 sets the rates for employer and employee contributions. These statutes are established and amended by the state legislature. The City makes annual contributions to the pension plans equal to the amount required by state statutes. GERF Basic Plan members and Coordinated Plan members were required to contribute 9.1 % and 6.25 %, respectively, of their annual covered salary in 2012. PEPFF members were required to contribute 9.6% of their annual covered salary in 2012. In 2012, the City of Rosemount was required to contribute the following percentages of annual covered payroll: 11.78% for Basic Plan members, 7.25% for Coordinated Plan members, and 14.4% for PEPFF members. The City's contributions to the General Employees Retirement Fund for the years ending December 31, 2012, 2011 and 2010 were $251,921, $268,848 and $258,857, respectively. The City's contributions to the Public Employees Police & Fire Fund for the years ending December 31, 2012, 2011 and 2010 were $272,834, $256,236 and $249,472, respectively. The City's contributions were equal to the contractually required contributions for each year as set by state statute. Page 50 CITY OF ROSEMOUNT NOTES TO FINANCIAL STATEMENTS As of and for the Year Ended December 31, 2012 NOTE V — OTHER INFORMATION (cont.) A. EMPLOYEES' RETIREMENT SYSTEM (cont.) 2. Rosemount Fire Department Relief Association- Defined Benefit Pension Plan a. Plan Description The City of Rosemount contributes to the Rosemount Fire Department Relief Association Pension Plan; a single - employer retirement system administered by the Rosemount Fire Department Relief Association. The Rosemount Fire Department Relief Association provides a lump -sum benefit to its members upon retirement, total disability or death. These benefit provisions are established and can be amended by the Rosemount Fire Department Relief Association's Board of Trustees with approval by the Rosemount City Council. The Rosemount Fire Department Relief Association issues a publicly available financial report that includes financial statements and required supplementary information for the Rosemount Fire Department Relief Association Pension Plan. That report may be obtained by writing to City of Rosemount, 2875 145th Street West, Rosemount, Minnesota 55068 -4997, or by calling (651) 423 -4411. b. Funding Policy The contribution requirements are established and may be amended by the Minnesota State Legislature. The Rosemount Fire Department Relief Association is comprised of volunteers. Therefore, there are no covered payroll amounts or member contributions required. Individuals with at least 20 years of service who have reached age 50 are entitled to a lump -sum payment of $6,900 per year of service. In the event an otherwise qualified member has less than 20 years of service, the member is eligible for a pension payment of 60 percent after 10 years of service, increasing 4 percent for each year of service after 10 years to a maximum of 100 percent. Members retiring before 50 do not receive distributions until age 50, but interest at 5% per year is added to their retirement benefit until paid. c. Annual Pension Cost and Net Pension Obligations Financial requirements of the Association are determined based on a formula prescribed in Minnesota Statues 69.772. Those statutes prescribe a set amount of funding, per $100 of lump -sum benefits payable per year of service. For associations with assets exceeding the statutory pension liability, the financial requirements shall be the increase in the statutory pension liability for the next year over the current year, reduced by an amount equal to one -tenth of the surplus. For associations with a deficit of assets to fund the statutory pension liability, the financial requirements shall be the increase in the statutory pension liability for the next year over the current year, increased by an amount equal to one -tenth the deficit. The City's minimum obligation is the financial requirement for the year less anticipated state aids and interest on investments calculated at a rate of 5 percent. The value of assets was determined using fair value in accordance with GASB Statement No. 25. Securities traded on national exchanges are valued at the last reported sales price. Investments that do not have an established market value are reported at estimated fair value. Page 51 CITY OF ROSEMOUNT NOTES TO FINANCIAL STATEMENTS As of and for the Year Ended December 31, 2012 NOTE V — OTHER INFORMATION (cont.) A. EMPLOYEES' RETIREMENT SYSTEM (cont.) 2. Rosemount Fire Department Relief Association - Defined Benefit Pension Plan (cont.) c. Annual Pension Cost and Net Pension Obligations (cont.) The annual pension cost for the Rosemount Fire Department Relief Association Pension Plan for the year ended December 31, 2012 was as follows: Amount State of Minnesota contribution $ 91,845 City of Rosemount contribution 171,000 $ 262,845 The City recognizes the State of Minnesota's contributions to the Rosemount Fire Department Relief Association Pension Plan as revenue and expense. Three Year Trend Information Fiscal Year Annual Pension Ending Cost (APC) 2012 $ 262,845 2011 253,718 2010 234,599 Percentage of APC Net Pension Contribution Obligation 100.0% $ 0 100.0% 0 100.0% 0 A formal actuarial valuation is not required by Minnesota Statutes because the pension benefit is a lump -sum distribution. The formula used to compute pension contributions requirements is substantially the same as that used to determine the standardized measure of the net pension obligation. The computation of the pension contribution requirements for 2012 was based on the same formula, funding method and other factors that were used in previous years. d. Required Supplementary Information, Schedule of Funding Progress Ten -year historical trend information is presented in the Rosemount Firefighters Relief Association's Annual Financial Report. This information is useful in assessing the pension plan's accumulation of sufficient assets to pay pension benefits as they become due. Page 52 CITY OF ROSEMOUNT NOTES TO FINANCIAL STATEMENTS As of and for the Year Ended December 31, 2012 NOTE V — OTHER INFORMATION (cont.) A. EMPLOYEES' RETIREMENT SYSTEM (cont.) 2. Rosemount Fire Department Relief Association- Defined Benefit Pension Plan (cont.) d. Required Supplementary Information, Schedule of Funding Progress (cont.) The following historical trend information was obtained from the Association's financial report for the year ended December 31, 2012: Computations of the unfunded net pension obligation and employer contributions as a percent of covered payroll are not applicable since the fire department is a volunteer organization and no covered payroll exists. The accrued liabilities were determined pursuant to state statutes. Significant assumptions include: the entry age normal cost method was used to determine the normal cost of all benefits, the rate of investment return used in making the valuation was 5% per annum compounded annually, age and service at retirement was assumed to occur at age 50, no turnover or early retirements, and the actuarial valuation period is open. e. Related Party Transactions As of December 31, 2012 and for the year then ended, the Association held no securities issued by City or other related parties. B. RISK MANAGEMENT The City is exposed to various risks of loss related to torts; theft of, damage to, or destruction of assets; errors and omissions; workers compensation; and health care of its employees. The City purchases commercial insurance and participates in a public entity risk pool called the Minnesota League of Cities Insurance Trust to provide coverage for these various risks of loss. Settled claims have not exceeded coverage in any of the past three years. There were no significant reductions in coverage compared to the prior year. The City has established an internal service fund (Insurance Fund) to account for and finance uninsured risks of loss related to torts, theft of, damage to and destruction of assets, including deductibles. The majority of the City's general liability and workers compensation insurance premiums are paid for by this fund. At December 31, 2012, there are no claims liabilities in the Insurance Fund based on the requirements of Governmental Accounting Standards Board Statement Number 10, which requires that a liability for claims be reported if information prior to the issuance of the financial statements indicates that it is probable a liability has been incurred at the date of the financial statements and the amount of loss can be reasonably estimated. Page 53 Assets as a Overfunded Percentage of (Underfunded) Accrued Accrued Accrued Date Assets Liabilities Liabilities Liabilities 12 -31 -12 $ 2,504,979 $ 2,523,870 99% $ (18,891) 12 -31 -11 2,783,038 3,034,608 92% (251,570) 12 -31 -10 2,615,897 2,902,338 90% (286,441) Computations of the unfunded net pension obligation and employer contributions as a percent of covered payroll are not applicable since the fire department is a volunteer organization and no covered payroll exists. The accrued liabilities were determined pursuant to state statutes. Significant assumptions include: the entry age normal cost method was used to determine the normal cost of all benefits, the rate of investment return used in making the valuation was 5% per annum compounded annually, age and service at retirement was assumed to occur at age 50, no turnover or early retirements, and the actuarial valuation period is open. e. Related Party Transactions As of December 31, 2012 and for the year then ended, the Association held no securities issued by City or other related parties. B. RISK MANAGEMENT The City is exposed to various risks of loss related to torts; theft of, damage to, or destruction of assets; errors and omissions; workers compensation; and health care of its employees. The City purchases commercial insurance and participates in a public entity risk pool called the Minnesota League of Cities Insurance Trust to provide coverage for these various risks of loss. Settled claims have not exceeded coverage in any of the past three years. There were no significant reductions in coverage compared to the prior year. The City has established an internal service fund (Insurance Fund) to account for and finance uninsured risks of loss related to torts, theft of, damage to and destruction of assets, including deductibles. The majority of the City's general liability and workers compensation insurance premiums are paid for by this fund. At December 31, 2012, there are no claims liabilities in the Insurance Fund based on the requirements of Governmental Accounting Standards Board Statement Number 10, which requires that a liability for claims be reported if information prior to the issuance of the financial statements indicates that it is probable a liability has been incurred at the date of the financial statements and the amount of loss can be reasonably estimated. Page 53 CITY OF ROSEMOUNT NOTES TO FINANCIAL STATEMENTS As of and for the Year Ended December 31, 2012 NOTE V — OTHER INFORMATION (cont.) C. COMMITMENTS AND CONTINGENCIES From time to time, the City is party to various pending claims and legal proceedings. Although the outcome of such matters cannot be forecasted with certainty, it is the opinion of management that the likelihood is remote that any such claims or proceedings will have a material adverse effect on the City's financial position or results of operations. The City has received federal and state grants for specific purposes that are subject to review and audit by the grantor agencies. Such audits could lead to requests for reimbursements to the grantor agency for expenditures disallowed under terms of the grants. Management believes such disallowances, if any, would be immaterial. Funding for the operating budget of the City comes from many sources, including property taxes, grants and aids from other units of government, user fees, fines and permits, and other miscellaneous revenues. The State of Minnesota provides a variety of aid and grant programs which benefit the City. Those aid and grant programs are dependent on continued approval and funding by the Minnesota governor and legislature, through their budget processes. The State of Minnesota is currently experiencing budget problems, and is considering numerous alternatives including reducing aid to local governments. Any changes made by the State to funding or eligibility of local aid programs could have a significant impact on the future operating results of the City. The City has active construction projects as of December 31, 2012. Work that has been completed on these projects but not yet paid for (including contract retainages) is reflected in accounts payable and expenditures. In 2007, the City committed to a municipal revenue obligation as part of a development agreement with 146th Street Partners, Limited Partnership. The amount of the obligation is $1,500,000, and is payable to the developer solely from available tax increments collected from a specific portion of the development. Payments are scheduled through the year 2032, and carry an interest rate of 4.96 %. The obligation does not constitute a charge upon any funds of the city. In the event that future tax increments are not sufficient to pay off the obligation, the obligation terminates with no further liability to the city. Since the amount of future payments is contingent on the collection of future TIF increments, the obligation is not reported as a liability in the accompanying financial statements. The balance of the commitment outstanding at year end has not been determined. D. JOINT POWERS DEBT COMMITMENT On August 25, 2005 the City of Rosemount entered into a joint powers agreement with the Cities of Apple Valley, Burnsville, Eagan, Farmington, Hastings, Inver Grove Heights, Lakeville, Mendota Heights, South St. Paul, West St. Paul, Minnesota, and Dakota County Minnesota, to establish the Dakota Communications Center (DCC), a Minnesota nonprofit corporation. The purpose of the DCC is to engage in the operation and maintenance of a countywide public safety answering point and communications center for law enforcement, fire, emergency medical services, and other public safety services for the mutual benefit of residents residing in the abovementioned cities and county, (members). Pursuant to the joint powers agreement, members are required to provide DCC their pro rata share of cost of operations and maintenance, and capital projects. Page 54 CITY OF ROSEMOUNT NOTES TO FINANCIAL STATEMENTS As of and for the Year Ended December 31, 2012 NOTE V — OTHER INFORMATION (cont.) D. .JOINT POWERS DEBT COMMITMENT (cont.) On May 1, 2007, the DCC issued Public Safety Revenue Bonds, Series 2007 in the amount of $7,315,000 to provide financing for the acquisition of equipment and reimbursement for conversion costs. The bonds are special obligations of the DCC, payable from revenues to be received from members. Pursuant to the joint powers agreement, members will levy taxes for the payment of their pro rata share of the principal and interest payments due on the bonds. The bonds mature February 1, 2014, and bear interest rates ranging from 4.5% - 5.0 %. The debt will be re -paid with member assessments over a seven year amortization. All members reserve the right to prepay, in whole or in part on any date, its allocated share of principal and interest on the bonds. Payments from the City of Rosemount are provided from General Fund appropriations. The City of Rosemount's future member payments to DCC as of December 31, 2012 are as follows: Payment Year Amount 2013 $ 57,570 Total $ 57,570 Pursuant to Section 9.5 of the joint powers agreement, member payments are submitted monthly and held in escrow by U.S. Bank National Association (trustee) until the funds are remitted to the bond holders according to the established bond principal and interest due dates. The interest earnings from the escrow account will reduce future member obligations on the debt. Information regarding the Dakota Communications Center can be obtained at the website www.mn- dcc.orq /stats.asp or by contacting Jeff May at the City of Rosemount, 2875 145th Street West, Rosemount, Minnesota 55068. Telephone 651 - 322 -2031 or email address ieff.mayCa)ci.rosemount.mn.us. E. RELATED ORGANIZATION The City entered into an agreement with SKB Environmental, Inc. for the purpose of providing for the construction and maintenance of facilities for public recreation, to improve living and working conditions within the City, further public educational opportunities, and to provide for the charitable needs of the City. This agreement created a trust called the City of Rosemount — SKB Environmental Trust Fund. Beginning in 2011, the amount of distributions to the City would be equal to the excess of the trust value over $1,525,000. The trust agreement states the funds can be used by the City for any lawful public purpose. During 2012, the City received approximately $350,000 from the trust. F. EFFECT OF NEW ACCOUNTING STANDARDS ON CURRENT - PERIOD FINANCIAL STATEMENTS The Governmental Accounting Standards Board (GASB) has approved GASB Statement No. 61, The Financial Reporting Entity. Omnibus, Statement No. 65, Items Previously Reported as Assets and Liabilities, Statement No. 66, Technical Corrections — 2012 — an amendment of GASB Statements No. 10 and No. 62; Statement No. 67, Financial Reporting for Pension Plans — an amendment of GASB Statement No. 25, and Statement No. 68, Accounting and Financial Reporting for Pensions — an amendment of GASB Statement No. 27. Application of these standards may restate portions of these financial statements. Page 55 REQUIRED SUPPLEMENTARY INFORMATION CITY OF ROSEMOUNT REQUIRED SUPPLEMENTARY INFORMATION GENERALFUND SCHEDULE OF REVENUES COMPARED TO BUDGET (BUDGETARY BASIS) - BUDGET AND ACTUAL For the Year Ended December 31, 2012 REVENUES TAXES General property tax Fiscal disparities Other Total Taxes INTERGOVERNMENTAL REVENUES Federal grants State aid - police State aid - general government State aid - highway Other Total Intergovernmental Revenues PUBLIC CHARGES FOR SERVICES General government Public safety Highways and streets Parks and recreation SAC Total Charges for Services LICENSES AND PERMITS Business Non - business Total Licenses and Permits FINES AND FORFEITURES County SPECIAL ASSESSMENTS INVESTMENT INCOME AND MISCELLANEOUS Investment income Net increase in the fair value of investments Miscellaneous general revenues Donations Rents Total Investment income and miscellaneous Total Revenues OTHER FINANCING SOURCES Transfers in Budgeted Amounts Variance with Original Final Actual Final Budget $ 7,129,946 $ 7,129,946 $ 7,165,167 $ 35,221 1,252,954 1,252,954 1,252,954 - 267,000 267,000 254,892 (12,108) 8,649,900 8,649,900 8,673,013 23,113 - - 26,044 26,044 144,000 144,000 144,515 515 25,000 25,000 48,732 23,732 30,000 30,000 32,625 2,625 82,500 82,500 88,302 5,802 281,500 281,500 340,218 58,718 618,700 618,700 741,220 122,520 36,200 36,200 54,668 18,468 11,500 11,500 42,703 31,203 245,900 245,900 238,572 (7,328) 2,000 2,000 2,860 860 914,300 914,300 1,080,023 165,723 61,000 61,000 61,317 317 301,300 301,300 423,327 122,027 362,300 362,300 484,644 122,344 125,000 125,000 129,343 4,343 1,000 1,000 8,371 7,371 141,000 141,000 95,022 (45,978) - - 2,588 2,588 25,000 25,000 14,674 (10,326) - 42,638 42,638 (0) 28,300 28.300 37,093 8,793 194,300 236,938 192,015 (44,923) 10,528,300 10,570,938 10,907,627 336,689 3,500 3,500 3,500 - Total Revenues and Other Financing Sources $ 10,531,800 $ 10,574,438 $ 10,911,127 $ 336,689 See auditors' report and accompanying notes to required supplementary information. Page 56 CITY OF ROSEMOUNT REQUIRED SUPPLEMENTARY INFORMATION GENERALFUND SCHEDULE OF EXPENDITURES AND OTHER USES (BUDGETARY BASIS) - BUDGET AND ACTUAL For the Year Ended December 31, 2012 CURRENT EXPENDITURES GENERAL GOVERNMENT Mayor and council Executive Elections Finance Community development General government TOTAL GENERAL GOVERNMENT PUBLIC SAFETY Police department Fire department TOTAL PUBLIC SAFETY PUBLIC WORKS Government building maintenance Fleet maintenance Street maintenance Park maintenance TOTAL PUBLIC WORKS PARKS AND RECREATION CAPITAL OUTLAY OTHER FINANCING USES Transfers out TOTAL EXPENDITURES Beginning of year budget basis encumbrances End of year budget basis encumbrances GAAP basis expenditures and other financing uses Budgeted Amounts Original Final Actual Variance with Final Budget $ 231,900 $ 231,900 $ 176,347 $ 55,553 513,000 513,000 507,147 5,853 42,000 42,000 32,634 9,366 424,900 424,900 415,886 9,014 897,300 897,300 857,950 39,350 378,500 378,500 407,515 (29,015) 2,487,600 2,487,600 2,397,479 90,121 3,069,600 3,095,538 3,083,874 11,664 378,300 378,300 366,289 12,011 3,447,900 3,473,838 3,450,163 23,675 484,400 484,400 939,632 (455,232) 637,400 637,400 633,899 3,501 1,319,800 1,319,800 1,229,994 89,806 736,200 736,200 688,834 47,366 3,177,800 3,177,800 3,492,359 (314,559) 1,253,500 1,270,200 1,271,513 (1,313) 19,900 19,900 19,900 - 115.000 115.000 140,000 (25,000) $ 10,501,700 $ 10,544,338 10,771,414 $ (227,076) 865,812 (1,351,725) $ 10,285,501 See auditors' report and accompanying notes to required supplementary information. Page 57 CITY OF ROSEMOUNT NOTES TO REQUIRED SUPPLEMENTARY INFORMATION As of and for the Year Ended December 31, 2012 Budgetary Information Budgetary information is derived from the annual operating budget and is presented using generally accepted accounting principles and the modified accrual basis of accounting with departures from generally accepted accounting principles for encumbrances. Excess expenditures over appropriations are as follows: General Fund General government Government building maintenance Parks and recreation Final Budget Expenditures Excess $ 378,500 $ 407,515 $ 29,015 484,400 939,632 455,232 1,270,200 1,271,513 1,313 Rosemount Fire Department Relief Association- Defined Benefit Pension Plan Required Supplementary Information, Schedule of Funding Progress The following historical trend information was obtained from the Association's financial report for the year ended December 31, 2012. Date Assets 12 -31 -12 $ 2,504,979 $ 12 -31 -11 2,783,038 12 -31 -10 2,615,897 Assets as a Overfunded Percentage of (Underfunded) Accrued Accrued Accrued Liabilities Liabilities Liabilities 2,523,870 99% $ (18,891) 3,034,608 92% (251,570) 2,902,338 90% (286,441) Computations of the unfunded net pension obligation and employer contributions as a percent of covered payroll are not applicable since the fire department is a volunteer organization and no covered payroll exists. See auditors' report Page 58 SUPPLEMENTARY INFORMATION CITY OF ROSEMOUNT COMBINING BALANCE SHEET - NONMAJOR GOVERNMENTAL FUNDS As of December 31, 2012 Special Revenue Funds Total Fire Nonmajor Safety Port Authority Governmental Education GIS General Funds ASSETS Cash and investments $ 868 $ 7,828 $ 183,349 $ 192,045 Total assets $ 868 $ 7,828 $ 183,349 $ 192,045 LIABILITIES Accounts payable $ - $ - $ 738 $ 738 Total liabilities - - 738 738 FUND BALANCES Committed $ 868 $ 7,828 $ 182,611 $ 191,307 Total fund balances 868 7,828 182,611 191,307 Total liabilities and fund balances $ 868 $ 7,828 $ 183,349 $ 192,045 Page 59 CITY OF ROSEMOUNT COMBINING STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES - NONMAJOR GOVERNMENTAL FUNDS For the Year Ended December 31, 2012 Special Revenue Funds REVENUES Taxes Public charges for services Investment income and miscellaneous Total Revenues EXPENDITURES Current: General government Total Expenditures Net change in fund balance FUND BALANCES - Beginning of Year FUND BALANCES - END OF YEAR Total Fire Nonmajor Safety Port Authority Governmental Education GIS General Funds $ - $ - $ 58,600 $ 58,600 3,420 - 3,420 452 11 136 599 452 3,431 58,736 62,619 30,360 30,360 30,360 30,360 452 3,431 28,376 32,259 416 4,397 154,235 159,048 $ 868 $ 7,828 $ 182,611 $ 191,307 Page 60 CITY OF ROSEMOUNT BUILDING CIP CAPITAL PROJECT SUB -FUND SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE (BUDGETARY BASIS) - BUDGET AND ACTUAL For the Year Ended December 31, 2012 REVENUES Taxes Intergovernmental Charges for services Investment income / fair value adjustment Total Revenues EXPENDITURES Current: General government Capital Outlay Debt Service: Interest on lease Total Expenditures Excess of revenues over expenditures OTHER FINANCING SOURCES (USES) Transfers in Transfers out Total Other Financing Sources (Uses) Net Change in Fund Balance FUND BALANCE - Beginning FUND BALANCE - ENDING Original and Final Budgeted Variance with Amounts Actual Final Budget $ 24,000 $ 24,000 $ - - 209,281 209,281 600,000 878,355 278,355 10,500 26,017 15,517 634,500 2,500 288,050 1,137,653 503,153 2,500 - 760,247 (472,197) 6,950 6,944 0 297,500 769,691 (472,191) 337,000 367,962 30,962 25,000 25,000 - (511,748) (511,748) - (486,748) (486,748) 337,000 (118,786) (455,786) 3,247,792 $ 3,247,792 $ 3,584,792 $ 3,129,006 $ (455,786) Page 61 CITY OF ROSEMOUNT STREET CIP CAPITAL PROJECT SUB -FUND SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE (BUDGETARY BASIS) - BUDGET AND ACTUAL For the Year Ended December 31, 2012 Original and Final Budgeted Variance with REVENUES Amounts Actual Final Budget Taxes Charges for services Special assessments Investment income Miscellaneous Total Revenues EXPENDITURES Current: General government Public works Capital Outlay Total Expenditures Excess of revenues over expenditures OTHER FINANCING SOURCES (USES) Transfers in Transfers out Total Other Financing Sources (Uses) Net Change in Fund Balance FUND BALANCE - Beginning FUND BALANCE - ENDING $ 720,000 $ 720,000 $ - 175,000 179,253 4,253 - 647,556 647,556 8,500 846 (7,654) - 821 821 903,500 1,548,476 644,976 2,500 3,367 (867) - 9,766 (9,766) 895,000 833,832 61,168 897,500 846,965 50,535 6,000 701,511 695,511 - 644,540 644,540 - (1,116,596) (1,116,596) - (472,056) (472,056) 6,000 229,455 223,455 1,285,603 $ 1,285,603 - $ 1,291,603 $ 1,515,058 $ 223,455 Page 62 CITY OF ROSEMOUNT EQUIPMENT CIP CAPITAL PROJECT SUB -FUND SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE (BUDGETARY BASIS) - BUDGET AND ACTUAL For the Year Ended December 31, 2012 REVENUES Taxes Investment income Miscellaneous Total Revenues EXPENDITURES Current: General government Capital Outlay Debt Service: Principal retirement Total Expenditures Excess of revenues over expenditures OTHER FINANCING SOURCES Sale of capital assets Total Other Financing Sources Net Change in Fund Balance FUND BALANCE - Beginning FUND BALANCE - ENDING Original and Final Budgeted Variance with Amounts Actual Final Budget 482,948 $ 522,948 $ 40,000 7,500 4,180 (3,320) - 1,906 1,906 490,448 529,034 38,586 2,500 2,500 - 276,000 325,243 (49,243) 62,948 60,119 2,829 341,448 387,862 (46,414) 149,000 141,172 (7,828) - 12,740 12,740 12,740 12,740 149,000 153,912 4,912 1,399,565 $ 1,399,565 - $ 1,548,565 $ 1,553,477 $ 4,912 Page 63 CITY OF ROSEMOUNT SCHEDULE OF CHANGES IN ASSETS AND LIABILITIES - M.A.A.G. AGENCY FUND For the Year Ended December 31, 2012 ASSETS Cash and investments LIABILITIES Due to M.A.A.G. Balance Balance Receipts Disbursements 12/31/2012 $ 34,305 $ - $ 34,305 $ $ 34,305 $ - $ 34,305 $ Page 64 THIS PAGE INTENTIONALLY LEFT BLANK STATISTICAL SECTION This part of the City of Rosemount's comprehensive annual financial report presents detailed information as a context for understanding what the information in the financial statements, note disclosures, and required supplementary information says about the government's overall financial health. Contents Page Financial Trends 66 These schedules contain trend information to help the reader understand how the government's financial performance and well -being have changed over time. Revenue Capacity 72 These schedules contain information to help the reader assess the government's most significant local revenue source, the property tax. Debt Capacity 76 These schedules present information to help the reader assess the affordability of the government's current levels of outstanding debt and the government's ability to issue additional debt in the future. Demographic and Economic Information 81 These schedules offer demographic and economic indicators to help the reader understand the environment within which the government's financial activities take place. Operating Information 83 These schedules contain service and infrastructure data to help the reader understand how the information in the government's financial report relates to the services the government provides and the activities it performs. Sources: Unless otherwise noted, the information in these schedules is derived from the comprehensive annual financial reports for the relevant year. Page 65 N C a c0 �U cc N C LL N 7 C C Q N .N N N CL E U 0 O E N 0 O U U O (D cu CL O 't co O (0 0 u� (O v co - m�O (0 O O V O 00 O V O O (3) LO (D N O O W N N O� O O V V M O 00 O O O OOO V ON r MCDN r N V to I-- c" N Oco u) O !u> u7 r.- 0) � V M O) EA Ef3 ff3 (A M m W � O V V M N N LD O I� M N N r O c'! pl O V N O NN f V'd'u) V O .- c0 I.. u7 d'I-r O O r- (D OIL V O V N rl�u) I N MOO u7 CD N V'O V V LO r I.- O � M O EH K3 V-T Eli O u7 O Lo c0 c- O V d' O M M V OD O O V O O r Lo N I� OM P- N O N OOM O O co O OD N w0 co c oOD O V N O ( O M O O O O O u) c) O N O O V O O O O OO'a O V O N N O M_ M f� EA EA Ef3 EA OD (D (OD N V M O I� n M M V N I� O O rn r I- m u) w (: Lo m P- co 0 O O V M I-- O MOO O V O 07O V O M O co N O� V' N �7� O �O O co V M .- V O O F _M M r clJ ER 6,> 63 co CD u7 O co r O cD� O V' N M O Oc O O O N O CON m 04 N C O OOM oil N P- oo LO N N O O N O( ( oo d' CD .- Oc co 04 u7 (O N v N M O OON O OM } (00 COO � A Eli EH El) 6" LA V LL OOO O r OD OD u7 MM O MM O r co (A O r O� OLL7 V O O� r--. Ou7N r I- OO N O N� N OOO N O O V M O I� h O V N O M NM O CD M N ONO) r O �- I- u)00 O co Lo OD N O N M O K) V> EA Ef3 I-- N V CO CO CD CD Ln NN O occc Oc (MON O cD � Ooc N O V O O U') r.- M OCtO O O O N O O O N OO O V O M V O co O I-- O OON to N V i.- � N N co N O co O O N O �_ M O EA cs Eli Ef) V I- h co N V' co CD n d' 0 OD O M I� r N O O N O 0 0 0 n O OO O I-- N 1- I, N "t O N O O O M co O O I� (O cM I� N M O N V O O M N N O O O N V O O d' N V c0 I• O V .- N N O r N O O - u) !ff EA Ef> EA O co .- 7 m O O .- O co W � M O M M O V O � O O M co O N O co (O _N co O I� W v It N N n O M O O O O co M N d' (D co O d' M_ E9 E13 Ely 61) I- ' O N r O r "t ' u7 O '' cc N Cl V� oc N O co O O: m O O M N O O u7 c O co O) N O N N o 04 OD .2 N t O O O M N_ EA V3 EA EA O O o O O O N .J N O N O N O W C N C N co N N w N N N @ D @ N "' @ C C .. .' ... .. N O @ c C (y (O 0� co .� C C O C C C Q 6 O N N O 0 W C C C �+ E C > O um O O E. O C O O r NO p °' d >o m m ac (D E U O U 7 N y 'O O �- 7 C N O E �Vi cyp C y 7 c N a (6 @ E (O L T y V > Z Q' 5, Z � Z Q' z) to G z- a 0 m' H a I-° N C a c0 �U cc N C LL N 7 C C Q N .N N N CL E U 0 O E N 0 O U U O (D cu CL r CD a V M M O ' CO N CO V M W O N N r V CO CO V 00 M ' ' ' O ' N CO Cl) M O r 00 M N O N O M r V N CO r N t0 M 0) r 0 O 0) (D co oc O l0 V N 1 r M r N m l0 O M V N � cV � O N n h 00 00 r co V U) UO O (O M r M 0) M O r V O V O O r c M V oc N O m r oD M 0) V O V W W V CO N r M V r l0 N N M N O m N N M V N M r r N i0 m N M O 41 N 09 C U .c U 'E '� U 'E N d C N O N O 0) _ r N UO 00 O) C)l ql M O V r V O r W O 00 ' UO O 0) O ' ' ' V r V V CO CO O V m r M O O CO r r O r O 0) M O (fl r r O W M r O M M r r m r V 0) O U) CO V V C' r O tb N M (O (O m n U0 N CO O 0) 0) V r 0) W N 0) co M r V O f0 Cl) O) M M 0) 00 W) r O (O c0 O CO r V O Cl) co CO N CO r M V t0 cc N Cl) V r N r r M 0) V O V r N U) W (0 r N r C-4 r N O V r 6% W. H3 m 2S E E N U U O U U N w6 U U V w N O E 2 c a a c o c c c S a c m co O M 0 r (O I r r M N co 10 r V N N co ' (O O V O ' r N ap U0 00 OD N O N O M M cc U0 m U0 r oc V (0 O r r N l0 V tO O Cl! 0) M O M O W m N V co 00 O M UO V r 0) m N U0 O O N V r O ; m O r m O (D �" l0 O V A OD N O CO (0 B O O O m m N r N r V 0) M CO O Co O 0) r 10 N O V N N N r co N (O co M V r O r N M V r M r ap Cl O V CO r r N r U) W O r N r N (`') M O 0 OD fA EA fA M N V 0) co O .1 O OD O O O co N O V ' M r 0) O oD r r M r M P, 0 O r N M M (O N O V N oc r O O O M M M N r V N O r UO r r O M r M UO O r r (O r (O O U0 r O) M N M m V 00 O co OD O O OD M 0) c0 00 m O M V V O O r Cl) c0 V O M O UO N CO r V LO c0 r CO N C) (0 r V r OD l0 co cc M m V( O CO r V U0 r N LO OD (O N Cl) O LO O N N r N N Cl) V r M r N U) m r r V E9 fA fA N O) V O 10 O .1 r (O O N N CO 10 O O Cl m CO CO M LO r UO m 10 W) V 00 O O O l0 r N r V cc 0) 0) 0) 0) r M V m O M r t0 r O CO LO (D (0 Cb O r N N V M N O U0 M r CO tD r M r (h r r r M r 10 r O O m oo m r O oo O Cl) M 00 r N co M N M N M N N r N N m O Cl) (O r M UO N O CO V N V (3 0) r 0) N OD M V CO c0 r m U0 U0 N M O M O O N V N Cl) 0) CO N M (O N 00 r M CO N N CO l0 r r l0 r N U0 N M r r N EA (A (fl r l0 Un N r col V I M r N r M r O V M N CO N M CO O LO N to U0 ' 00 to N N r O n (O CO M CO r f� O m W m N V' V O r oc N 0) 00 (O (O tb V N CO V (O O c N_ O r V N (O r O N- O U0 M M O r O M V O m U0 O 0) LO OD 0) V (O 0) 00 Cl) M O �- O r r M N O m r N V r N CO Cl! 0) M OD r (O LO V CO M UO M O N V r Cl! r UO O (0 r CO N M N r N 0) (O N CO r (O V r N M V r M r N N r (O m r V m Vf F13 fA oo co O O N ol r I r r O M V r m r co U0 O U0 O O ' N 0) aD N O O 10 V r N r r M (0 Cl) M O m r UO 0) V M O UO CO m 0) 10 CO UO O r oz 0 00 OD M O O c U0 r U0 V c0 V N r oc M N O N co V r l0 M M O 1` O l0 U0 r u) U0 N m W co O r O O N N N U0 N l0 O r 0) r N m U0 O l0 m V CO d) m V W V c0 r N C, O r M N O r N r N N N N N h r M r r V O N 1O 0 r N V3 Vf E9 M co r M r 001 wl O V co 00 V O N r r N r W O O M l0 U0 r M V M N M V M r m V OD r N N r r O O N (O 00 r r r r V 0) W O) U0 O r V M O O r r O tU m O O O 0) m r v) O r M V M CD c0 m O V O N r l0 10 N M N 00 U0 O h r N V m t0 M N V V O O Cl) cM V UO CO M r r M N O r f� r V V M CO (D 0) co V 0) O 0) N co M_ (O r t0 UO r r N M CO (0 M N O V r N O N r N N (V O r co N N r N ff3 V3 PH (o CO UO 0) 00 r V N O O 0) 1(D V O O O N r co O r N (O M M O CO 00 r V (o Co N r M O N m M r UO N W V r M 0) r Un N V M c M c( (C r UO ( r 0) O O M m n V 00 00 Cl) V Cl) N r Cl) Cl) r U) n U0 r l0 10 N 00 CO (0 N O O (0 w 0) U0 N O O O V tD r 00 V CO O Cl) O) m O r r r M U0 O m M 0) (0 M r (h to W Cl) N r r r r 0) CO CC N N N O r N r r r V r N r r 00 V (A f9 V3 M (0 r O CD N '1 M r m O M CO N r r r m co M '(0 ' ' 0 ' O M N UO m V m O oc V M 0) cc V r (D r M M O N M M V(( O W N 00 r CO M U0 M 0) 00 co CO CO W O cq cc r 0) O UO M N O V M N r of N 0) 0) O V O M M N N Un m r N O r t0 m n O r ('M rW O m 0 (O W M t0 U0 (O N V 00 M 0) m UO M V M oc r M r U0 (O r m r O O r N N r N M r O r r r M M r r 0) M CA ER 69 N N C C G c N > E E E O N N O O E 0> C (D N CL O > N > m C ID y O m m m a x d m a c a Q C U 'E a 0 � O N N w C U .c U 'E '� U 'E N d C N O N O 0) _ r 0 C O N? N 0) E C U C 0 C C O> O N (y U Y C N N U V O c fO ` w0 N >` E « y C N a C Uo N O CO U ID O N C c d c U N c Co c o m a > >_ E o m E w ? _ n m F > o m w .2 " E o E o a E o c m r Z E w E m m E m c 0 o E Z u m 0 a '� m e U c w > T Y o a (� o w '° c E o T y> n o. m 2 m c co o d >. U c m >. c om a) >. (n c o d w> L m> o > o >@ o a m o a c 0 .0 E N N C LL (o w 'y m m O N co N E w a) m 3 ai Z o F _ tO 0) >> .� E .n 0) C O LT O N m O O N co Lo m (o O a) co E w. N m. 3 - m N 3 Z rn- . 3� 2 m ao, O d W cl1 -GO) p 2 Odj E O U U N O c E c a a c °) N d € (o O m m 3 o aci 00 m 2S E E N U U O U U N w6 U U V w N O E 2 c a a c o c c c S a c m w$ a> o a a v 00 in m a � o> r a a v c� a' a 0 C) m (D a (L 0 v m U) u -1 LU 0 F m Fo a� U O U Fo_ 00 m ca a N O N O ' ' M N N 1 r m � r M r V r ' O co N W co N ' co O M m r 0 10 M (O M m N N N OD V O m m M N N V N V N O m V V V N M N t0 M to OD O N m N m m V (O O_ N N O N to N rn E O OD N N C d M OD N m M N OD (O O N N N N O O M to V M C U C (O O W r N V m m V M M 1° m O lo- O M V C N Ito M r N OD M In N N N r V OD M W M V N N ~ ° N r > g > E N (0 M r (O v O r co C CD fl. M M r r r V (° rm+ d 2 m U U w L j U (7 N Q O N U !n N d3 m _ C ` C R A X$ C U C O O F F- 6% d tU ~ E co m c° ' ' (° W N O V O V V all O V M ' M V O M (D OD ' M 10 r to m N m m N N V N (O V O m _ C> C7 F «° m co M N cc to O co M N (O N M O cc N (° OO O h m r V N M r O7 M co OD N O M N O M (D M N V M r r M O N N M O O M m m to to (O (O N M O V 00 N W r 0 (° to N co N N N m V m M V r m N r r O (O M M co O O N M O (O co m N O) N V M O OD M N r N (O N N M W N m M V d' r N m (O M r r to N r to (O v r (° CO (s ffl (A m n N O (O N O OD M O m In m co ' V ' O O N co ' O OD t0 O m m M N m N (D to V m m N (O W tO N m r N tO O O N M W N M O V r 0 O N O co m N M N O co (O N o Oo r M M m M N V V m V M v) V m oo to N co O m V co V N N N V m N r OD N M CO C N N m N W N r V m r M IS lo o V V W O C M (O r r V M r Io t0 v C? r M N r co r O (H V3 !ff V M CO m M (O N N (O ' CO M O m oo co N V OD (n O m N m N m N O V N V O W m cc co V oc to M m M N M V N M co, m V N t0 V N N N co N V V (O N O N (n t0 N M In m V N N O O m w) N' (O co V N co r V N O m O Ni m to to M m N O N O co to N N V OD M N N V O M M O r N m tb M M m (O N N N O) to V co co N n N N (O V M N M N N O In r N M O m r r r co O r v W m r r r N N Vd !!3 V3 OD N N ' ' Oo N m N c) to m m co N N ' co (O (O O V M ' O (n m O co 00 ('n m N N CO W tO m M N N In IO m N M co OD CO CO m M M (° CO to O CO to N to N m O O O CO N M N LO V O O r N O n n I-- O m N W O c6 n n to oo 10 to m M m m to tT N (+J to ` N N (O M m M In m M r m N N V M V O N I M O O V O N N O M (O CO r M M r N N M (D N ('7 O N M V r M ID N r r (o M s O) N v r m r N r r N M 69 V3 N LL M OD O V M (o r 0 ' ' N m O r I oOl lol M r (O O M V V m (O ' m V V N ' M (O M M (D N m N ' (O m OD N O r N O N N m M (° N U7 tO oc t0 N 00 (O V r M V M N a0 N N cc (0 M O r N N N m M O W M c N M O to N t0 m O N O) N M M m N O N In N O cc O M V co M O M M ]--I V O O O V N O O O N (O N m (O O) Mtn to O O) O (D to N m CO OD to N r r to V r M N N M c0 r [M V M r V M co ffl f9 V m V OD ' ' to O O ID V O O O N CO ' t0 ' N O) V r ' m O V If) O In O N O OD m to oc to N co W N N Io W O m 00 N a0 N N m N M m to IN- M M_ N oo m N m In N (c Io co O co m m O f0 to N N N O f0 M OD Lo N to V V m N M m M O m W pr N CO to r N r M O m r t0 N t0 N M m N c' (D (O N to N N m r m M [O M r O r V V m O r N r r to O N N m N 00 N N r �- Io M r N O ._. N r r to LO to m r r r O V v (� V3 Efl N V t0 M ' ' m m ' V 00 oo O V N m m ' N ' V m N ' V O N N V Lo m M O IQ N m N_ co m m m O OD N m N N O r N to to cc r N f- t0 1f7 M_ N m M to r co N t0 M to m to O co N 0 N m m V N N 6 to O 16 N N M N aD M N co O V m 0 m O N O V m M t0 m m M V N N M m N N V (° (O O O O N N m M r (O N m N 10 V (O N to m V m V O (O A Oo N N O M N r r CD m (O N OD O r V V V t0 m r N W N r _ V3 � V3 c0 V M O M m 0 O N Co N m N ' O ' V W V m ' Co V co V N (O (O V 00 r N r m M co CO m (° M m N (O N N m r m V N O O O V r N N r O M W m O N (n N N M M m of n tD m CO O Oi M (h to V (p m m O n (O W m N N M M O N M oo N V N r oo OD O N N m N (c N V V M m r jCoD4 N N N M V V V oo N M O In O N N m N m M N r oo M N V m m r M 1(7 t0 OD M m to N V) H3 Efl LO V C) C) N m N 01 m LO N O N M r (o V M M N 10 M V to N to M N N V (O r W r N r V N M tom r 10 r V O O (O I° m V 0 V c) V OD V N to N W O O w) o O M N N N r r 0 M O N N m oo (O r M M m N M cc N (O M O 11 O W .- to m d O M do N O M n N (n m W m r (O V N co V M O O N CO O (° c to M r N N r tO N M m m (° oc m V M r N m M O M N W N r m M N m M V v_ m m N V N N 0 r to N N N r r N O M M (O to to (O t0 ID V m M N (A VJ lA 00 m ca a C O N N O a J C N N N � C m N U °) U N � N C N c rn E O C d C O m N d N O d 'O 3 m N N C U C •V O) i0. d o c o a10i ° z N ? a) = ° o w m a = m E n E a. ° O w m° E N m ro N N c m ~ ° v Z U a) LO > g > E N $ E w •U d N N N N tU C N U N U N C CD fl. d o c m m o rm+ d 2 m U U w L j U (7 N Q O N U !n N Q aU to i3 C-5 m _ C ` C R A X$ C U C O O F F- 00 m ca a C O N O a d Z G m N °) U N C d Z C d s m ti N N d U y c a w N N m N N N L ( 'O l0 N 'O 'O co N N N N C N N O7 g? aC°r > g > E N $ E w •U > E w o f w .� :> E U 7 N N C U C N C N U C 1T O !l A O m c Cl o o C C T Z' d _ C ` C R A X$ C U C T C N N CO d tU ~ E N 'C .0 y °) E m w > F E N E C O) ~ E CL w W C p_ t0 C r. 'D O) C U C m N N C C m d 0 C N d o '� m 0 0 L N _ o a O a (7 1L- m m _ C> C7 F «° m r o w z 0 m H 0 0 F m H H U C7 co F 00 m ca a CD CD 0) La CO ' CO LOIN ' ' ' ' ' ' O V' CD r` — O O ccc V O O N M O O N N O O O O O co r` m N r` N co M m M 00 N O oc N O 00 et CO : _W � yj Eli CD r- 00 co r- I M co M O V 'I O O O COO � to 70 W N W LnM M _ O O cq � L � co r O r 00 N r to r• V O d' �- N ER U) O ct N V ' CD N O "t ' ' ' ' Ln N N L M� co LN ON NO N O M O M N O M O CD W V N N O Cl) V cc LO M c: O O NV r M COO N CD t- O Ch �- M � �3 M V M O''' O' O LO V r N ' '' ' W 0) P- LO M N N V CP O _ CO O CO Mn CO M N� L N M M V m Co co co a7 V O '1' O) N O LO V' O CD EO N oc d7 co M CD N co � M r V O� � d3 C) "t r m' ' ' O Lo M h CO c) O O r O oc N O M cq LO r` cl� y O V V O O O) N n LO N O r` r` M O V O l00 Cl) N� CoO O i[Di } N CO r O O O cc 611 EH y LL r O m ti' ' '' M "t CD M O O (A n V CD cD (A O cD c0 O Cl V c W (A P- M W CD LO f� Cb C CD O 00 CD Co O) O W N co O V co Li') O N U) V O Cl) COD S M � N N co It M v c0 O � � r` 'd' Co ' ' ' ' O Co N n M M r ' ' ' ' O O V O I: O O co O O O V O N M O M O Cl) O Cli r` Cl) oc r` CO V m r• N O n N N N Cl) c0 Cl N M M CO N Nt oc P- N LO 1- CD O oc r• M W N r• 00 V N LO LO v a- Efl V3 CO N <t co ' ' ' ' O 7 t` N 00 ' aD ' ' ' ' 't N N CD OCn CO co M' M r• M CD N HMO O r 000 Cl (3i M r` M O CO 0) 0) N Zt N W) (D C) C14 C) O.- Oro c O M� M r LQ N O LO a1 CD M v O CO N N EA V-> CO V r- m' ' 1 ' O M O O O V '� ' ' ' , N O 'It 04 OLO r•O �C 1 r rMO OMB rr 00 co O) V O cc O M M 00 00 O N N co V O O M LOO 41 ! d' CY) lOO CO r O M N V O O r N M CO N N Efl � Q) W CO 4 Co ' N Co m ' CD ' ' ' O M h M m M O N OO V CO n N Co LO 00 CD N V O O �_ M r r W) c7 cyi O r` CD CO 00 O N� � h O N LOO COD W � V N N N I� yj EA y N U U) w 'O C O C f0 "O � y LL C Lc E O C 7 O U 7 U N 2 LL C d Q 0) C N to 'o "O V) y (0 E 7 y y a C r C y C y C C LL w C w '� C E y LL 0C i O c 0O ) Y O U O O O U O " y E U O L ` ON ` N O V "C a L y C C O a� E o c C ? C o O a L ? a� � m� or a a O LQ L d N c N o y U a m r N m Q O l0 Ol 7 o o w § O2 U) 0 o0 00 0 U - 0- C y 0 0 Z0'Q 0 Z w 0 Q U) :.i LL � F Q E- F CD CD 0) La U M 0 d m m a o) co t M a2 M 0 M l0 t t W O)N o ' t N t ' O (O OIL I f- O 1- (0 O M O ' ' ' O ' OMO MM t (O O O O M In O r- o M m 0 M O CO M c0 N N O N m �[) W O M O N O f� o o .0 N N N oOt f- tm�M� 1-OMP- .0 r,-v mON�- O Mr (0 m toNN OW (0 N O NCOO �-O mot- M I� N O N M(O LO C'! t �-il t O_ N N 07 10100 Cl! N M M �- O W V: Ot N N O M Cl) � O m O W N N � 6s H V3 M 100(D Mt t0 00 f- Mf�Or� - NOMm M Lo f- ' (0 N O C0 ' m o Om N C) cc o M O ' ' ' O �O10 o� ' NOW OM N N M 0 o O Mc0 t In co M�00 (0 N000 m CD M O �0>hNm Cl! N co (0 t (0 co t (0 N N t 1-- m N co N m (0 O N (O co m W M r M o o0 M t• c0 N n N N N O c0 O� t M o t co M N O M N O N (0 cp M N M t l0 t O_ N N W M t O N NCO M� �- (0 N (O N N m W O N oc M M N toD <n M r W N 03, » » tmm 0 t(0(o0) 0 1, N 10 ' t OW M CO O ' ' ' ' (nw Mm m N o t� t0 � COI NO of o t O10 nO 110, Oti O ON CO o0 o O OCON oW (n NW Or cot N N O N c0 O M N N V M N V o t CO N M N m M (0 Lo m m o o O M M W O O c0 C° t N m O O W o N 0 0 (- 1- r- 00 f� t` r- t N N O N o N cct C cpt NN t t m M M W N N M N.- o0 1- oc1l- N - O W M Or (0W M (O o _O N (fl U9 o) t i� oOMOm t Ot I-N ' O O o r Oa- M Wm W m o ol0 l0 ml0ONtO I� M o 10 COO NOm V N m ht N oN n t N M 0 L W O Mt m t CD O N r M M mmh N O V I:W o N r, 1-- MO o WO 00 W M0)oM 1` t M O N t I- t W M N c0 O co OMmMt� f-NM N m W o o 10 N(0 �� M W t N N OW �- W 1� M t t (O mm I c0 o N c0 N M N M M W �- N r t Y3 I- o o W (0 0 0 0 6 M 00 W M 1- ' o O C0 t M O' ' ' ' O t M �- O O W o O M m t CO N LOO CO O IQ n r o n N M t O o� M� N t I� W t O O O O M O N r h N O O co c o r O t M O N CO I� 1" N O ` W m10. V CO a)N1-� 0O0 COt m 61 o t(0m(0N M I- M o I�m tmN COO 1`m000t 00 CD tt o0 N OoNV N co MN O N 0] (0 M C N (0 C . a N M M (0 to M W i� t O M t to t (0 10 N C <n W N V EA 69 FA N ''' o LL O 0) -,t O I� M o M 1-00M � qt r t M t o' 00 ' W (c Oot O. o m Oo OO OOm CO(o OOOMO M M O M 1• m C M co N N N O� OO o O OM (O O W O WNO n CO (,.i t` o n m V f� OON(0 m t(0 m O(°NNNIT OM 00N W l0 m IoMN 0�-�- M O O� L, Z' m0N�- .NOO co o0 O N M O t��C (0 -<nt(n V O ;(O n -LQ N N Nr h m (0O M M.-M r N t t M N N N 1 0 mN 1_0 N N � V3 � U3. 0)(0 to t 0 co 't CDIU)l 0MM (0 ' 1 MO N � 0i I- � Or N o 0 MMOM2P -O� o I� N m O. m M O c- (OOM 'V., O W f� _O Ntil° N t oc m ONtM C (O m tOM(OM N m 0 W M I- O M f� Cl) 6 (0 o �'- O N m O C t O h m m 1- N o O (0 N O r N N ao M o M N O O W N M N M t` a0 N M m CO t O 00 f- t M O W Cl) N t(01-- M�(0 m (O m Cl! O COO N N N cc N N 0) (CL t M Cl) O r I� t Z- rNN1�N M CO O O (0 N N CO Cfl Ef3 (o t ih ot`mf�CO 00 0) 1-M ' ' r NN 100 N O ' ' ' ' OI-- MtN O N o O mM �MO W MO r-- O r- oW MON o W CmOmN 0o U) 0 W OOm m M I-- O W O N m Op t O CI L N Om mm N t O t t0 m N M I CO N Lo aD N I- N CO th o M M � O r s M oD O W N r.- N t � O N N N- m O; M CD N N 0 lco N V) t M N N (O co N b9 FA co ' W ti t 1-(OMM a) I- M, ' ' o m W Co ' ' ' ' ' OmN N co O o M M m CO t NOm m h m Omm M(0Ot 1� M oD W t NOW Occ N N I� M O1�O MN(q ;t co t m M O v' o O M W o CO Ot 10 01 01 01 mtN CO V MO CD MN co m (0 O BOO N olo0N 10 I- N W t O M O N mIN 10W t CD - N CO N CO N(Om �- N N t N OmN M N N O(l71� M (p N M N V) R Fi) m ' (O OmN (0M Co 0) "1. 010 r-o o COMO 0 O ' ' ' r-- C) o 00 W CC o M oNMO00 (0(n (OmOhMmt �t CC) 0) MtM.-N000 CO OD tNto 0,O- m (O O O N�00 MIn N10 cri Cl) M W t M M O N O W oml- rN Cl) ot`. -Mto�t 10 or o LI)o (0 N o 10rO 1OM t r m CO t tI� W mI� I�MlON�� m m N W O o N N C O M m l o co O (0 �-�- 1--01 (O O C m N N M h N t Oi Cn r N I o m r t m t N NI-MW 1� m N o O N ({) FA ffJ H a C 3 LL i0 C d N E o C m C d C � > C 7 U C d N d N N N C Yl 0 ¢ U E 0 ° v N C d d "O N U m d a d m d c m ° a�i�m�m cd 1.5 > uE °EE y oA c c m Ry N "� d C d O a d (0 :� 3 w N N .� Ca aci m m 0 d E d m a E° ° C d 0 01 N m d C d Y �O 0 C d m N T n (pq C U C Cl m C C m W O. C O E N G C > N d N C U C N O O 87 � d M U y m j C m 0. j m E LL U aa) m N ` m N d �' N d N O d� O = U m N C C o p° C O C N 'p..- O m C N d N d N m X M 9 U d(D r p C Ca N C O1 ((1 O C m O Z a in C- U d C d V d C C d d C E d u) c a (D M C O1 U C N '@ N> r U U 0 Cl) .m. (n N X = C m E= O Y- d d w O X X d .c d d d d C a C S] C C r a.0 ,C C d 0_ N li' > T E U d ,.rm+ a d C C m m m O L .0 L d m y d 0 - m N 0 m m 7 U C O. >- >HH GaJIL (n d 7 O m O p,Uaaa000❑ .-. m ID __ w U> y m d Na aOU m cc V)�� m„ C C U a C .0 U .� L (p d X X O L O d 7 7 d C (/lUU -,:2 0: W H W O F-Z LL LL ❑ U M 0 d m m a N a) T Q cc Y U N @ (a a) 3�~ E ° n c Z v c CD o (o O a) E0) a) ° c t al (a r m ° 6 U E c Ol N Y O. 0 0 (a (a (�V C' U c E (6 (a U -00 a) > 5 E E N � � 0 N a) 0 L O R W c.- NU) w 0 'O N Q a) Q o o w e 0 CL N L N, n C N F O C) O fa O N CIO CL co i 0 ' m 0) 0 N O. Op N C CA d N C (a N .0. yam". �(°a a c 3 Q V) T O) U m N W m m :0 c c x a) =1 a) - N c B N 0 0 0 ca E 6) O ME m CD 01 _ CLm > ° °o 0�V o _mot mwY a� O U Q � U ° U (6 c U N Q.- c cn 0 m (a N 7 O O Q x N E y U c CC 0)— -0 N 0) O_ co C (a f0A a) (0 n Q) N �� U - - is O > -0 0 m O c N m N N a J C)7 9 a) a) x c ° Q o X w Q 0 0 N a) c t0 3o N n 3 a) s�o Q 0 O w 0 F- N C C N ca O ° V) ca O O-0 - a) 0 c 0 m a) U a) a) c co > .�-. C ,t,,, O ° W Y N r- > 7 p C >` O 0c 0 0 0 d t N E > U ~ (i ° E oY 7 0 — (0 U (0 O O (n Z 0 0 (0 a) N E 0 Ncu cc Y N I a (D LO NM�W LO x r O O � OO OO ISO a7 C�T LO O N N 00 (O V N V O r �� OON COO (00 (`MNN M V-,V OO(O(O COO uiZcc L) EH 0 0 0 0 0 0 0 0 0 o Tw � hO�MN MMV'O(O pax 0 o @dm N CF cc I� CL F- UA W c O 0 7 N M O O O M N V r MO r MMCOO W O TxN f- N(O C0 N N N MV (0 V� •4; O M V N t It v Y O 000000000(0 -O 0 0 0 0 0 0 0 0 0 MNh f-0)MO OO(O w d0 ((j'rF co O 000(00 OO Mr EY 7 to M (O d> �pl O W O `N c! (q M M N r O) N N N N N r � N I� E r m W m m rt+ (Q N x r ((00 COM (`0') O O Cl) V L -(O O00M(00 a7 R O M 'I) N O 00 co 000 O f� N CO LO (Q 00(0 MN 0 V dCC V COCOLO V N N N N N N N N O Z CL O N J a3 U d C. 0 0 0 0 0 0 0 0 0 0 T 0 0 0 0 0 0 0 0 0 0 00 MO (OM Pl OOI- L' 0 OI- O NOMOV M 0 CL R 7 Ca) V NN NON CC' V O N NN V OO 000100 N N N N N N N N CO CO d n W CO I-- COO V MN 0M O K d Eft to cc c n _~ O v V f�(f NMrNNo 00 MMV OOOO �M Q cc x (6Vr 06 (6 vo6 rnmui°6 O 0 F R N M(O CO 001-- Cl) O 0000 'IT CD 73 vv<tvv OOcc(o Q J Z ns > U Y � of 000000000(0 CD M r r M O- r y V N Op {yp d -0 co 00 co V 00 Vi Cj V ce) N ++ a) OAP I-V co mt"M f-N EY= N t0 V OM(OOOt,MMO MN (n C. 000) 0000 N W �> M M W M M N O W W (00 0 - -- N N N N N n7 CL O 64 w L d •O 0) W o W O M CO r W O CL aS 0 x .r.. T O 04 (D O O N N 00 f� m a3 R oNMM M V �O(0 00) �-O MOCOO "t (0 w) m N N N N N N N i r- O a0i O Z J V 0 V 0 > LL O 0 d 47 M V O (O f- 00 0) O N 0 0 0 0 0 0 0 3 w VJ 0 0000000000 O en H N N N N N N N N N N tAUQJ N a) T Q cc Y U N @ (a a) 3�~ E ° n c Z v c CD o (o O a) E0) a) ° c t al (a r m ° 6 U E c Ol N Y O. 0 0 (a (a (�V C' U c E (6 (a U -00 a) > 5 E E N � � 0 N a) 0 L O R W c.- NU) w 0 'O N Q a) Q o o w e 0 CL N L N, n C N F O C) O fa O N CIO CL co i 0 ' m 0) 0 N O. Op N C CA d N C (a N .0. yam". �(°a a c 3 Q V) T O) U m N W m m :0 c c x a) =1 a) - N c B N 0 0 0 ca E 6) O ME m CD 01 _ CLm > ° °o 0�V o _mot mwY a� O U Q � U ° U (6 c U N Q.- c cn 0 m (a N 7 O O Q x N E y U c CC 0)— -0 N 0) O_ co C (a f0A a) (0 n Q) N �� U - - is O > -0 0 m O c N m N N a J C)7 9 a) a) x c ° Q o X w Q 0 0 N a) c t0 3o N n 3 a) s�o Q 0 O w 0 F- N C C N ca O ° V) ca O O-0 - a) 0 c 0 m a) U a) a) c co > .�-. C ,t,,, O ° W Y N r- > 7 p C >` O 0c 0 0 0 d t N E > U ~ (i ° E oY 7 0 — (0 U (0 O O (n Z 0 0 (0 a) N E 0 Ncu cc Y N I a 0 fa O o + N O O 0 7 N O N i N Y O N X N I� E o O rt+ (Q N N H W 0 O N d C. Cl N M O O N 0 o 0 0 0 0 0 0 0 0 CO I-- COO V MN 0M N a) T Q cc Y U N @ (a a) 3�~ E ° n c Z v c CD o (o O a) E0) a) ° c t al (a r m ° 6 U E c Ol N Y O. 0 0 (a (a (�V C' U c E (6 (a U -00 a) > 5 E E N � � 0 N a) 0 L O R W c.- NU) w 0 'O N Q a) Q o o w e 0 CL N L N, n C N F O C) O fa O N CIO CL co i 0 ' m 0) 0 N O. Op N C CA d N C (a N .0. yam". �(°a a c 3 Q V) T O) U m N W m m :0 c c x a) =1 a) - N c B N 0 0 0 ca E 6) O ME m CD 01 _ CLm > ° °o 0�V o _mot mwY a� O U Q � U ° U (6 c U N Q.- c cn 0 m (a N 7 O O Q x N E y U c CC 0)— -0 N 0) O_ co C (a f0A a) (0 n Q) N �� U - - is O > -0 0 m O c N m N N a J C)7 9 a) a) x c ° Q o X w Q 0 0 N a) c t0 3o N n 3 a) s�o Q 0 O w 0 F- N C C N ca O ° V) ca O O-0 - a) 0 c 0 m a) U a) a) c co > .�-. C ,t,,, O ° W Y N r- > 7 p C >` O 0c 0 0 0 d t N E > U ~ (i ° E oY 7 0 — (0 U (0 O O (n Z 0 0 (0 a) N E 0 Ncu cc Y N I a d m Q Q Z W 2 N m as a U) V 100 N 00) M N V O W c0 O N N W r V O O N O W W W d'O mm 0 O t r 000)0) W W Q100 U) O Z V' oo 10 o) V' M M co 10 y p V N N r` cOOOOD a r cOM Nmcn V mm o'` � m) rm O)N N r mN OO W a1N O) OQ7 Or (A O Z n O m mm O m o W N W r r W r m (0 0 (O N f� o7 f- N N r- . c0 O) a O uT 04 vOO W Om) mOO� t o — F — i % 8 Z M00O D V cOCOr�d)N N y ONE oNmr OO F! (o lO — N N O 0) Q7 a1 ,. m 'V U Lo m Lo 1f) 1[i V V d' 10 (0 N M r � y_ D E 10 V O N O r n OMB m T'O6; M 1O(O(D O h O 1[) 1n V 7 tO 10 lo O C C 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 N O d N 0 0 6 0 0 0 6 6 0 0 U m mOnmrnv rnrnco (0 O CO —NON O V N V m N M � O D N V 0 7 N O OD W 1(71010 r` Mr M M N N N N N N N M N O O 0 E 1O CO o COr MN mm W O r` OD V co 1O Mn ON 'per N Y y d 10 V Ommr MMm CO Q7 M V N N N lO (0 co O O N N N N N N N 0 0 0 0 0 0 0 0 0 0 N O _ 0 100 u N V M W O. -w r con N V O UO O• -O N NNN W N(O (O ON 10 _` N N N N N N (n B Z N N U r jn d E r` O (0 0) N d) N M cO co N Y a) m yv� Looco°r'ca0o�'r°'i°pc°ov o my Y C y r r a E O NV% cc R 0000000000 >`. Vi a) , @ C Z o Lrn 1O NmO r` V CO Lo mM cO mM O)O(O 001 cO 1oOnr-- (or-(n-(oM T d m N U a) 3 0 0 o '_� OIh� OO) D) NNN I N m O w 6 a O E E w y � Z c U o@ a m Y 5 wc a a) Y a) p � m f) E O co N cO V V N N- N a7 V a O O O d a .r.. cQ N n cO M N r m(O O m D) co V co N ON(O '� y a 3 C Y C (D S O N O N N N N N N N N N N �? ` O U. O c O C (D 0 o 0 0 0 0 0 0 0 w N a d M U U m =_ m :i . mo O d3> a) c :c.; rL.. t y O N aL. O Co � 101Lo ON C)) V a U >> a E cO O ` m cc! m 1p M 0) V c =n O N ` t N N N N N N co p D y to N N N j, N R O to OZ U o _ > @ > O) It o y .N y co a) a Q c 0 'am, Y N 0 R W 7�- W MNvcWON M �M O e- 0 c E Co y V a j 10 C y 0 0 0 0 0 0 0 0 0 N x d U T O O O O O O O O O c j N O O _ ¢ c R~ N R U w a .-o y X N O) c j (` O ? d N 0 m r r rOi O N 1N M Cl) c0O W r--:N(O mNNN Ma m F nU N m m () Q U 10 10 V' V V V d' V V'tr >. N i O. D_ a,) y W o o o a) y L N <n O K N p m y N_ O h N cc N A o d Y O d N N TC� M V mm ha000a -N ~.L.. d N 0000000000 N Q U c La O.w i' O N N N N N N NNN N 2 m= O Z, 0 1yo�° U o o ^mw mUa- (n z >- d m Q Q Z W 2 N m as a Schedule 7 City of Rosemount Principal Property Tax Payers Current Year and Nine Years Ago Taxpayer Local Tax Capacity (1) Great Northern Oil Co. $ 1,602,740 Flint Hills Resources LP (2003 - Koch Refining Co.) 1,220,889 Northern States Power Co. 294,308 146th Street Partners LP (Waterford Commons) 192,247 Clarel Corporation (Cub Foods) 187,560 CF Industries, Inc. (Cenex) 151,554 Northern Natural Gas Co. 124,242 Rosemount Properties LLC (Rsmt Market Square) 112,640 Rosemount Crossing LLC (Aldi's) 98,680 Webb Properties LLC 92,898 Francis & Patricia Dolejs 87,938 Bigos - Rosemount LLC (Cannon Equipment) 85,372 Minnesota Pipeline Co. 82,674 Hidden Valley Spe LLC (Rosemount Woods) 79,310 Minnesota Energy Resources Corp. 78,182 Limerick Way LLC - Cue Properties LLC (Wintz Companies) - DR Horton Inc. Minnesota - Continental Nitrogen & Resources (CNR) - Centex Homes - Contractor Property Developers (CPDC) - Gruett - Labriola Partnership (AWP) - Principal Taxpayers Total $ 4,491,234 Total City Tax Capacity $ 22,280,099 2012 Rank 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 Source: Dakota County Treasurer - Auditor (1) These figures do not include the dollars collected but the tax capacity for each entity. Page 73 2003 Percentage Percentage of Total Local of Total Local Tax Tax Local Tax Capacity Capacity (1) Rank Capacity 7.19% $ 1,376,457 1 10.18% 5.48% 694,303 2 5.13% 1.32% 336,629 3 2.49% 0.86% - 0.84% 227,899 4 1.68% 0.68% 89,957 6 0.67% 0.56% - 0.00% 0.44% - 0.42% 49,196 13 0.36% 0.39% - 0.38% 54,759 12 0.40% 0.37% - 0.36% 82,583 9 0.61% 0.35% - 94,927 5 0.70% 89,151 7 0.66% 89,148 8 0.66% 82,440 10 0.61% 77,417 11 0.57% 43,818 14 0.32% 42,148 15 0.31% 20.16% $ 3,430,832 25.37% $ 13,525,367 Source: Dakota County Treasurer - Auditor (1) These figures do not include the dollars collected but the tax capacity for each entity. Page 73 (A c O Y V m O U COO y C � E x v N y O LL d Q N v = O ltf coUa-i 0 0 0 0 0 0 0 0 0 0 0 +' O O O M 1I- N CO 't ,- X y J O000)OOOMODM 0 0 0 0 0 0 0 0 0 0 0 o x o 0 (D m m m m 0 0 m o m ~ O 0 U � y M 0 M M d N (0 ti 04 c LO M O O M d' � O O m O O M O�- 1- O M CC) M Ni I- O - d 1- - rl +O+ R V - M CO O'It CO N N N r F d r- d CO co 0 M It N O Cn I- Cp 00 d O O U � v M 0 O 0 M Cn M M (0 O y M O B It O co 0 M O M 3 x CA N d 1� CO CO V . Ch C7) >S R ++ CCU O CD co O N It (0 N O � d 0 O � U y - 0 0 0 0 0 0 0 0 0 d CO M- O 0 t"t O c O X a CO CO CO O CO LO CO - CV CO C o0 (A (A of 00 00 CO CA CA O � tU O (A 0) CA () 0 (A CA (A CA V m L U a� U X cn— CO�(01-I-rn(0 y N(01-000(0It 'It d M C - 0 � 00 - 00 h N 00 N Q N OOON(ACT0000 _ V CC) CO O - � O ti V) (0) O M (0 LO It N N O 00 It rl 00 00 G C5 O O L O r U U f� Cn 00 O d' O O 0 MJ. x N 0 0 0 d h (4 - 00 CC) O M O co M O 0 0 dt co (0 (0 (0 .- (0 00 0) 1� M CO Cfl Cf) M d - O ',t C d I-COM00 -r- -00 0 J i- M'It 0 (0 1- CO 0) O N O 0 0 0 0 0 0 0 0 0 0 O O Q L (V L 7 O co a) H C O O U to O Y (o U 7 O U) ti a� rn co CL M O O N 1 O) R C, X N CO � y H 7 d G o E!3 y M 0 M M d N (0 ti 04 c LO M O O M d' � O O m O O M O�- 1- O M CC) M Ni I- O - d 1- - rl +O+ R V - M CO O'It CO N N N r F d r- d CO co 0 M It N O Cn I- Cp 00 d O O U � v M 0 O 0 M Cn M M (0 O y M O B It O co 0 M O M 3 x CA N d 1� CO CO V . Ch C7) >S R ++ CCU O CD co O N It (0 N O � d 0 O � U y - 0 0 0 0 0 0 0 0 0 d CO M- O 0 t"t O c O X a CO CO CO O CO LO CO - CV CO C o0 (A (A of 00 00 CO CA CA O � tU O (A 0) CA () 0 (A CA (A CA V m L U a� U X cn— CO�(01-I-rn(0 y N(01-000(0It 'It d M C - 0 � 00 - 00 h N 00 N Q N OOON(ACT0000 _ V CC) CO O - � O ti V) (0) O M (0 LO It N N O 00 It rl 00 00 G C5 O O L O r U U f� Cn 00 O d' O O 0 MJ. x N 0 0 0 d h (4 - 00 CC) O M O co M O 0 0 dt co (0 (0 (0 .- (0 00 0) 1� M CO Cfl Cf) M d - O ',t C d I-COM00 -r- -00 0 J i- M'It 0 (0 1- CO 0) O N O 0 0 0 0 0 0 0 0 0 0 O O Q L (V L 7 O co a) H C O O U to O Y (o U 7 O U) ti a� rn co CL O Z In r- rn m a I:O0I�1 V MOO OOM o Or-MMOOoo R CO M IO Ili NNOOOM IL la U 0000000000 _ OO �MCON COO N7 —N .R. O £ stMMMNNNNN� o a c a o .. 0000000000 c 0000000000 O o C 0 0 0 0 C 0 0 0 E r R 000000mL000 C p E E M�f- (O d'co NgNN Na0MM0Of`OM. > o (o O r` co M V O d Cl) N M m CV N cq CN Q � 0 0 0 0 0 0 0 0 0 0 (� y dN 0 0 0 0 0 0 0 0 0 0 0000000000 y d In In 6,6 U O O O L6,6 r- h co co 000 000 c >> y Odn 0w 00r- F ~ V Qo m N:,6.6.6 COO d V M m a C!3 Q. N . . . i . . i i . i ad d O R CL Oyu y 603. N 0000000000 C 0 0 0 0 0 0 0 0 0 0 OOoC C C 00C C d O In o o In In In to p o o V V) Q.d 0. V 07NN00000 r- CD 't MOM r-N Nr, — C6�O�cr�OIO7 q7 L6 NQ 3 Q � Ef3 N a 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 p d y U) R C d y 0 3 o 0 C C 0 0 0 C C C o 0010 In CD 0 o U) In In r-- NWM IO NNO .0 > O.Q Pc-In O Ir7 M In CO rM '> CL Ot+ �t`to rMM — NNE Q� yap 1 0 0 0 0 0 0 0 0 O N 0 0 0 0 0 0 0 0 0 C 0 0 0 0 0 0 y E w E E w % M CCOO ro(00 N(MO Q O r` M M N > 3 w O a w0 U U3, 00000 d 00000 O O O O O N OOOO In O d 0 0 0 0 0 00 0. Q C CL — 7 O O O (6(d y C» >� N 0 0 0 0 0 0 0 0 0 0 L+ 0 0 0 0 0 0 0 0 0 0 d a 0 0 0 0 0 0 0 0 0 0 G. x N p o In O In O 0 In In In In TO rM co 1- 00 r` Nt' 9 Q. O 0 M N O� V' O In 1 N� - -IO V V CM CM MNN O. Q 7 Ue y CA 0 0 N In In O O 0000 V O M N O CO M O N M O N O Cr CO W r` IO N N In _ d CL E CD ON COONNNO It CO O0t0O 0 Lo d V w 0 I c Ih 00000000000 a � d Oy OI�f�0f�00�t0N c R c O OOM t00IO r-_ CMM r- 0 W 0m r`r- NN V Ca d 7 M} .p Cod ONNNM NN N N N N N N N N O .+ C p d.y+ 3 N O O y Q LL 0 CD O � C O d O C~ 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 i w Y Ri m N N N N N N N N N N O Z In r- rn m a C C w w 7 0 d C1 R .a C O m LL = d R O 0 R O d 0! N r N Z LL O d O O U = R C{= fnUd'J N M CO N I'- to CO N r 0 M I- O It N O r M CO I'- R N N N N L y"i (V Q IL R U 0 0 0 0 0 0 0 0 �, M 00000000 C N 0 0 0 0 0 0 0 0 N d 0 to to In O O O 0 M Cfl r- r CO N Cfl E E O Lf ) O r- r- M ti In N y_ W U � M 0 0 0 0 0 0 0 0 Cl 0 0 0 0 0 0 0 0 0 0 0 •� 0 0 0 0 0 0 0 0 0 0 >Z X d O CC) CD U.) O O 0 CC) Cf) LO O O dt r I. M to r- M M h L r- O OOCnNOI- d'rMLO d Q N r CC) �f �i CM M CM N N O OOOOOOOOOCO 0 0 0 0 0 0 0 0 0 M N I- r- CA M CO In O O d O N M Cfl Cfl L O O CM .- 00 Cfl i 4f CO M Cn � r M W CO O M to r- CO O r- r- O M Cfl r rr R M co CO O) L CC) h CO M -�i N LO CO O r M CO CO M r r > LJ I r M CO M— M M N r M r r N N N N N 1- Ff3 r O O I-- O O It M N C 00M'IT O0LO I-MM O ti 0 CO O M Il- h m N dt ++ W C O N N N C N N O Q O IL L M It LO (4 ti 00 O) O r N R 0 0 0 0 0 0 0 m 0000000000 m O Z ,, N N N L E U O U) U O O -0 O O O N Y - U6 O 7 E O E OC) O Y O (0 N 7 cu >U 2 Y O L Cm R C 5 Y O ca M .2 E L Q Y i� a - wi,= vN Cl) CO R a 0 0 0 0 0 0 o o a o 0 .a U') rd'MMONMO)O) N— O O O y CO N N RY 0 0 0 0 0 0 0 0 0 0 0 C E R R V N > d W a ++ CC) Cn Cfl CO O N O N 'It CO .0 00 00 CO M CO r ti 00 rl- Cfl N fl- It �Iql- Cfl O CO CO N M R Q L N O Cn CO O CO 0 0 R rCO�d -NMCfld'OOr C C y I- COLO MOCfltiOr II- H d m r r vi Vi L6 d' N N r r O m &> 4) LO 0 d' N O 00 r M O N V V r r- r 0 rl- CO N r N M L N N 0 O LO M m M M_ ti_ 0 ti M M O O) Cfl CO 0 L O R y = M M M LO ti M O M CO r w, r N r r r LL In M d J609, 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 O LO U) O Cn LO CC) LO LO O R d'OIt OOM00It OIt O O O O O � Cn ti 0llzt oD F N r h V) V) In It M Cl) N H3 0 0 0 0 0 0 0 0 �, M 00000000 C N 0 0 0 0 0 0 0 0 N d 0 to to In O O O 0 M Cfl r- r CO N Cfl E E O Lf ) O r- r- M ti In N y_ W U � M 0 0 0 0 0 0 0 0 Cl 0 0 0 0 0 0 0 0 0 0 0 •� 0 0 0 0 0 0 0 0 0 0 >Z X d O CC) CD U.) O O 0 CC) Cf) LO O O dt r I. M to r- M M h L r- O OOCnNOI- d'rMLO d Q N r CC) �f �i CM M CM N N O OOOOOOOOOCO 0 0 0 0 0 0 0 0 0 M N I- r- CA M CO In O O d O N M Cfl Cfl L O O CM .- 00 Cfl i 4f CO M Cn � r M W CO O M to r- CO O r- r- O M Cfl r rr R M co CO O) L CC) h CO M -�i N LO CO O r M CO CO M r r > LJ I r M CO M— M M N r M r r N N N N N 1- Ff3 r O O I-- O O It M N C 00M'IT O0LO I-MM O ti 0 CO O M Il- h m N dt ++ W C O N N N C N N O Q O IL L M It LO (4 ti 00 O) O r N R 0 0 0 0 0 0 0 m 0000000000 m O Z ,, N N N L E U O U) U O O -0 O O O N Y - U6 O 7 E O E OC) O Y O (0 N 7 cu >U 2 Y O L Cm R C 5 Y O ca M .2 E L Q Y i� a - wi,= vN Cl) CO R a Schedule 11 City of Rosemount Direct and Overlapping Governmental Activities Debt As of December 31, 2012 Net General Obligation Bonded Debt Governmental Units (1) Outstanding (2) Direct Debt: City of Rosemount $ 1,710,368 (3) Overlapping Debt: School Districts: I.S.D. 196 - Rosemount I.S.D. 199 - Inver Grove Heights I.S.D. 200 - Hastings Dakota County Regional: Metropolitan Council Total Overlapping Debt Total Direct & Overlapping Debt 101,792,344 48,680,000 49,515,000 52,415,000 (4) 21,200,000 (5) $ 273,602,344 $ 275,312,712 (1) Only those units with debt outstanding are shown here. Estimated Estimated Percentage Amount Applicable Applicable to City (6) to City 100.00% $ 1,710,368 13.90% 14,149,136 5.30% 2,580,040 0.10% 49,515 5.40% 2,830,410 0.70% 148,400 (2) Excludes general obligation debt supported by revenues and tax and aid anticipation debt. Includes annual appropriation lease revenue debt. (3) Net general obligation bonded debt of the city supported by property taxes (see Schedule 10). (4) Includes Dakota County's proportionate share ($305,000) of the Dakota Communication Center's $7,315,000 Public Safety Revenue Bonds, Series 2007. $ 19,757,501 $ 21,467,869 (5) Excludes general obligation debt payable from waste water revenues, 911 user fees and housing rental payments, Includes certificates of participation. (6) Percent of governmental unit within the City of Rosemount's boundaries calculated by the city's Financial Advisors, Springsted Inc. Page 77 C E w y C c � Y 3 O) O w A N - LL a 0 N U J J RCD w � CO N M m m to N CO W) O V CO LO N v n n N (N v W O) FEf � U3 O M o co O °V o n W) v co m �I r V u V° Oi n N M M' _ O EA N d3 N 0 C. C. 0 ' N Cl LO O O O O O CMO N C. Lq R °V_ O W V, N O) l0 O n M co 0 CO CO r N N n CO i N y N LL ° w C O a c m o lc is c E J m o ° 0 O O O co S j y m CNi 0) N p d rG E ° O m N ¢ m O O d a y -NO m N d N N N C M O d Y C C nT+ 0) O N 0 in > ❑ O N o rn E y E m o mO E a ¢ O s a¢ m o O O N W 3 O F N I'D n (0 C C¢¢ ID °in¢ jo<n��a C? O a C U Y C 0) a V1 O O 07 O C N i-y O) CO U m n 0°0 1° O n. m iii O n n o Cl) E J Q F J ❑ C-41 W - d O J N W ❑ ❑ O v O n n W) .0 co m CI M M N W M D) 64 O M n M 0 N NI OfO � N O M O V N W CO CO 0 M M N w N M O O °) O M o N fIQ C N 60 0) � E Y J � a a c0 0 O m °o O N p 7 E O N N i U > W p o c O d Y d ¢ m 0 0 W M O N 0) O N ❑ � d .E 3 O a) � Z ❑ W ❑ J O N 0 N O CD 0 CO ti rn 0 O 0 rn 0 N M m 0 M co 0 N co W 0 N 00 0 N 0) 0 0 m O m CD CL N ca C 21 co E v m a N N d) t E a O m d .0 E O O N o a N O `o CL Y 0 .O N 0 Co U a a m p a _T C U r w O) C O U O � > N N � Y W a U f0 E v v5 N N -O N C 0 3 ° Co w 0) O W 0 M M � a � � O X U O O C C 0] U m � 3 a (D'a 0) � 0) ca v m � N N T o U to L y U c O 'rn w @ m E «° a m N a) c O F- d Z 00 n 0) a N '6 C O m d 7 C ate' al a7 V � a7 d O C la d r y d N y O LL W C V w d R fq U 0. J 0 0 0 0 0 0 0 0 0 0 d 1 to O d' (O r LO h Co N f\ r- 0 0 (M V LO O Co M M1,_ M LO O LO f` Co M j O U r r r r t` M N O W 00 O N r O m M CO M V O LO LO r O O M OD 1' O OO LO N N N m V +�+ F V LOO m W LO C f` M O LO M m r- N W M O Ln C N LO CN. W N 'd' O N N N N M r B N O N t` M M (O O 00 M N M e N O 00 00 O N co M co LO V' O LO r N r O O M 00 d' O 00 LO H M 0 N W V E E d W LO CO t- V m M It Cl) N C '3 — cr m 6% (Oj 0 0 0 0 0 0 0 0 0 0 ("> _ 0 0 0 0 0 0 0 0 0 0 O Cl Cl O C C O O O O N to LO LO LO 0 0 0 0 0 t0 N C co 7 O V •+ 'U M (NO O LOO .O C O N N N— ('M d co LOO M N N N M M N N N N C aD O O t N O M O O m d C V N M O N LO N M M C LO O N O N O M O cy d CO VN 'a0+ co O N co N N r N co LO Q d y LM LOO M M LMO m N CMD V _ fA N C r r r r r N V N Z Q E» d o 0 0 0 0 0 0 0 0 L ` Co N f\ r- 0 0 (M V LO O Co M M1,_ M LO O LO f` Co CO CO r M r- M j LOO (MM ((O t0 r r r V Lo OD Co OV m N- M m r- N W M O Ln C N LO CN. W N 'd' N O N t` M M (O O 00 M M 00 G> m N H CMO c O 0 LO O r N N E f6 00 O M 'ch O LO 00 0 LO 00 Cl) V co O r N OD co O P, V) N O LO O N LO O N. W N V N M O Lo N M 0 M{ C E i a) co LOO M N N N M M N N N N C cy d M � O U 0 0 0 0 0 0 0 0 0 0 N Z 0 0 0 0 0 0 0 0 0 0 C C 0 C C C C 0 C 0 (D m LO O 0 LO 0 0 0 0 0 0 � N O M O N O O V O O O O r- LO 00 P, 0 n M W a) m C r N o a` 61) .O C m co 7 O O d (.0 O 'Md' 0) O_ - W N C y fM0 r- CO .a) ai U O O M� O CO W N a3 0 co m M M O � CO � O '7 U y r r r (O d Q O c a- -It W r V M I N (MM V' C N O t0 O O O M O r @ N C M Co R M r I- n O d Lry co C r N N N M N N N N N N W a U LO N t-- M N N _O N n U) 7 N LO N O co O0 O (M NO ONV O O CO CO M � V O O N 'a C M N N M M M M M M.1 Ol N 0 0 0 0 ^O MO OO O r N N O (� d 0 0 0 0 O R R O o 0 N N N N N N N N N N N O Z u7 O C O 1] Q M O O N 06 Q N O O N O v7 (0 U N U C O N a N N a 0 N Q '00 C O O N m 0a O m O OOj N O 06 �- m _O O O E f0 N m O Q O a) N U C C O y y t0 a) N N E m m a U N U O y � O U a c U O C O � N O N C N O O C M (6 � NO N 0 N 0 N 12 a 06 o aa) m n O O U 6 .r C C N O N C � � � a (D E j Q U U a C — � U � C °a 10 O �° c c LL N N (` O n a) O (O a Schedule 14 City of Rosemount Demographic and Economic Statistics Last Ten Calendar Years Calendar Per Capita Personal School Unemployment Median Year Population (1) Income (2) Income (3) Enrollment (4) Rate (5) Age (6) 2003 18,700 $ 38,856 $ 726,607,200 3,849 4.0% 33.7 2004 19,907 40,548 807,189,036 4,111 3.7% 34.7 2005 20,837 41,706 869,027,922 4,474 3.7% 35.2 2006 22,049 43,095 950,201,655 4,551 3.7% 35.7 2007 22,397 45,045 1,008,872,865 4,458 4.4% 34.6 2008 22,750 46,357 1,054,621,750 4,623 6.1% 36.0 2009 23,750 44,374 1,053,882,500 5,266 7.0% 34.6 2010 21,874 45,022 984,811,228 5,179 6.3% 36.8 2011 22,239 45,022 1,001,244,258 4,745 5.2% 36.5 2012 22,432 45,022 1,009,933,504 4,860 4.8% 36.5 (1) 2010 is a regular decennial census figure. All years from 2003 and on (except for 2010) are the City staffs best estimates as of 12/31 of each year to give a more indicative estimate of the actual population. (2) These figures are provided by and are for Dakota County. These figures usually have a 2 to 3 -year lag time so that is why the two most current years use the 2010 figure for computing the "Personal Income" figure. (3) These figures are derived by multiplying the City's population figure times Dakota County's per capita income figures. (4) School enrollment is the total number of students who reside within the Rosemount High School boundaries and go to Independent School District No. 196 schools located in Rosemount. Beginning in 2000, the total school enrollment will show the total number of students with homes in the City of Rosemount. (5) Unemployment rates were compiled by the Minnesota Local Area Unemployment Statistics (LAUS) - for Dakota County. (6) These figures are provided by Dakota County. The 2003 figure was unavailable (the figure provided is the median age for 2001). 2011's median age is the most current information available so 2012 is shown as the same age. Page 80 Schedule 15 City of Rosemount Principal Employers Current Year and Nine Years Ago 2012 2003 Percentage Percentage of Total of Total City City Employer Employees Rank Employment Employees Rank Employment Note: The City of Rosemount does not track this information and there are no sources at the County or State level to provide this information. Page 81 E d 0 O a` O G LL T a N d d T O a E w c d E F d 0 C7 U d E F d IL C �p C d d C � } E E v E aci y o F �- U) U LL J 000 0n o 0000 Our m c OLo qMU� oN o � wry co co u�m co co 7 r 'I N 7 > N 'C U p N N Y C F, N d d N 0 3 t m o m aC O O LO O l0 O O O O O N M M O 'O M O N O V f0 l0 c0 W W O m V V' Oi �I N m LL N t0 to r a V' N N N O O N O O O O O O O M M O M Il O N O V cp W M aD N tU (h l0 O N O � � � (O t0 N O O O O �O O O O O O O M M t0 lU M N N N M co N O to O M N N N O O O O O O O O O O O O O M M t0 O O N O r (O t0 O M co M N �O N O O O O O 0 0 O O O O O O M M M O N � 7 V N N O N O O O O O O O O O O O M M N M IR tD O M d' V O 1� N O i0 O O O O O O O O O M O M M 0 O IO N O O O �- O oD �O N oo�n o0 00 000o u�uL � lo ol.-II O O O N O N N r M M N r MI a M N N M O zr N t0 �O W M M N M N C a p a N E E @ d U U C c > E d o. O c c c o c ` O L E d LLl > N 'C U p N N Y C F, N d d O ? (D 0 3 t m o m aC c Q LL. U U U) Z d LL <L m LL co d (L Q '= (n In c� 0 a LL a' a v d 'O U C .0 N N c O O a N E d V m m C O N U) d C m d �p n d U N c � � T c p iL n N lU Ud in zp N 00 N ✓T CL 0 M 10 Q D7 r O m Q N O Q O r Q' W O tO 10 Q (0 cp O r Nu th � O r O r Q N� O O Q W Q O nj N M N N M N O r W r (O W M Q Q M � (O N t0 � � LQ 'n M O) M Q N (O w O c0 .-- Q N N O nj N N Q W Q c0 OJ r N W Q r O (O M' Q 10 Q r N N O Q O M t(J M N '0 t0 6 N O (D r r 1[J O u) 10 Q M .— N Q N Q N OI N N N O Q 'n O c0 W N O W 10 O r O w W' m O O Q c0 M r t0 r M O N uS — I O � O N WI r O r m O N Q N N N �O 10 c0 O O N M O M O Q 'n N r coo arnmorco in to rM M 'n O N 0 N M N O O O O O N O tfj r (D N V N (O Q f0 O OI � N c0 N N O M W '0 f0 t0 M M O O O O Q N N r N N M M O W 10 N Q N m N O M 0 0 m' M O O) N M r M r 0 f0 O N OJ O (O N N M O Q N Q (D = '0 N D7 O W Q N GI r r N r N N rn� mrrcomm o m OM o� r 'n N M (O �— M N M O N N r D) D) O r O) R 10 O l0 O O O N r 0 N N Q (O rn r c c W m O O W O m � M (O m N N L' M N OJ O M O N N O W O N O N N E � v C m a) r CL 0 ° Oa c7 — aj n m a J O c a 0 N U O N d N 3 y 0 [0 r OO d — U p 12 o a " .. H a w m o c d o —O N a t m a m m o a o m F Y 0 ro �, C O o m> o u m E :5 E = y m m U a d 'm o y U w an d a cm c0 (6 O W u' (� N Q V O N W O K _ O rG y Q y v c c r c v `o m J s J a m y a> 0 c d @ c 010 > o N C i 1?zz a �zii Gina x0x �U�i¢ 3U o m U 0 (D (L ° M 00 0) C13 CL E m O a` c O C LL VI 0 A } W N b N LL u r m m m U U J to K M O O �I tq o N M r N 0 0 co W t0 W V N O O t0 V N N N �O V N O NI M r O) O O V N N N M O O O W �O V M O O r r O (O O � O NI m V V N O O r r O (O N) m N O O OI M A O N M O r o 0 NI M r O M O O r M V O O N N � N M `� r r O W O N M O r O OJ O N N � W M O N O r 0 0 r LL) o m ro o 0 0 0 o O O 0 0 N N O �- � O m M O O O O O O NI N CO d N q _ o d E m ('3 q 0 0 U N U z °°— E p a N r O. OI C F N p _ 6 d .. m In I C O. a q W ° C m U m O q — LL ry, C q q E LL o `u E a c w io N o U c > q o v> i LL U ° o N m ' m m°o N m o m y H a d o Z m «' m L° m �° o z '� S q ` m m m o d m d m o m o o W E E E p a o m a g r i m i5 m x U m¢ a a m m F 3 3 L m; U' d ii d d d �i to N .J ID CM m CL