HomeMy WebLinkAbout5.a Presentation and Acceptance of 2004 Comprehensive Annual Financial Report (CAFR)I AGENDA ITEM: Presentation and Acceptance of 2004
Comprehensive Annual Financial
Report (CAFR)
AGENDA SECTION:
Department Heads Report
PREPARED BY: Jeff May, Finance Director
AGE
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ATTACHMENTS: Resolution 2004 CAFR
APPROVED BY:
RECOMMENDED ACTION: Motion to adopt A RESOLUTION ACCEPTING THE 2004
COMPREHENSIVE ANNUAL FINANCIAL REPORT.
ACTION:
City Council Meeting Date: June 7, 2005
ISSUE
SUMMARY
CITY OF ROSEMOUNT
EXECUTIVE SUMMARY FOR ACTION
Review and accept 2004 CAFR
BACKGROUND A representative from our audit firm, Virchow, Krause Company, will be
here on Tuesday evening, June 7 to review the City of Rosemount's 2004 CAFR. The
representative will give a brief presentation, highlighting items that may be worthy of your
attention, especially the GASB 34 implementation, and also be available to answer any
questions that you may have. After you have reviewed your CAFR, if you have no further use
for it, please return it to me so I can use it as an extra copy for people or organizations that
may request them. Thank you!!
Recommend the above motion to accept the 2004 CAFR.
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CITY OF RC?SE1I�OUNT, ���INES�T,�►
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To the Honorable Mayor and Members of the City Council
Rosemount, Minnesota
We have audited the financial statements of the City of Rosemount, Minnesota for the year
ended December 31, 2004, and have issued our report thereon dated March 18, 2005.
Professional standard require that we provide you with the following information related to our
audit.
Our Responsibility Under U.S. Generally Accepted Auditing Standards
As stated in our engagement letter dated January 7, 2005, our responsibility, as described by
professional standards, is to plan and perform our audit to obtain reasonable, but not absolute,
assurance about whether the financial statements are free of material misstatement. Because an
audit is designed to provide reasonable, but not absolute assurance and because we did not
perform a detailed examination of all transactions, there is a risk that material misstatements
may exist and not be detected by us.
As part of our audit, we considered the internal control of the City of Rosemount. Such
consideration was solely for the purpose of determining our audit procedures and not to provide
any assurance concerning such internal control.
Other Information in Documents Containing Audited Financial Statemenfs
Our responsibility for information in the City's Comprehensive Annual Financial Report (CAFR)
does not extend beyond the financial information identified in our Independent Auditors' Report.
Under the terms of our engagement, we do not have an obligation to perform any procedures to
corroborate other information contained in the CAFR. Our procedures were limited to reading
the other information and making limited inquires of management. Nothing came to our attention
that caused us to believe that such information, or its manner of presentation, is materially
inconsistent with the information, or manner of its presentation, appearing in the financial
statements.
Significant Accounting Policies
Management has the responsibility for 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 discussed in Note 1 to the financial statements. No new
accounting policies were adopted and the application of existing policies was not changed during
2004. 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.
Virchow, Krause & Company, LLP Page 1
Certified Public Accountants&Consultants • An Independent Member of Baker Tilly International
Accounfing Estimates
Accounting estimates are an integrai 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. The most sensitive estimates
affecting the financial statements relate to the capitalization assumptions and depreciation
estimates used for infrastructure assets.
We evaluated the key factors and assumptions used to develop the estimated cost of
donated infrastructure and right of way in determining that they are reasonable in relation
to the financial statements taken as a whole.
Audit Adjusfinents
For purposes of this letter, professional standards define an audit adjustment as a proposed
correction of the basic financial statements that, in our judgment, may not have been detected
except through our auditing procedures. An audit adjustment may or may not indicate matters
that could have a significant effect on the City of Rosemount's financial reporting process (that
is, cause future financial statements to be materially misstated). In our judgment, none of the
adjustments we proposed, whether recorded or unrecorded by the City of Rosemount, either
individually or in the aggregate, indicate matters that could have a significant effect on the City of
Rosemount's financial reporting process.
Certain audit and bookkeeping adjustments we prepared were included in your financial
statements. Copies of these adjustments are available from management.
In addition, management has determined that the effect of $93,101 in unrecorded accrued
interest and unrealized gains is immaterial to the financial statements taken as a whole.
Disagreement with Management
For purposes of this letter, professional auditing standards define a disagreement with
management as a matter 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 our audit.
Consultanfs with Other Independent Accountants
In some cases, management may decide to consult with other accountants about auditing and
accounting matters, similar to obtaining a "second opinion" on certain situations. If a
consultation involves application of an accounting principle to the governmental unit's financial
statements or a determination of the type of auditor's opinion that may be expressed on those
statement, 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.
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Issues Discussed Prior to This Year's Audit
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 of Rosemount's
auditors. However, these discussions occurred in the normal course of our professional
relationship and our responses were not a condition our retention.
Difficulties Encountered in Performing the Audit
We encountered no difficulties in dealing with management in performing our audit.
We noted a few areas which we believe warrant your additional consideration. These areas are
detailed in the attached document.
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 the 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.
lS�.� ti u��
Minneapolis, Minnesota
March 18, 2005
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MATTERS FOR YOUR CONSIDERATION
NEW/NVESTMENT DISCLOSURE REQUIREMENTS
The Governmental Accounting Standards Board (GASB) has adopted new rules which may affect
your financial statement disclosures for your next fiscal year.
In the past, you have been required to disclose in the notes to the financial statements
summarized information about your bank deposits and other investments. Those disclosures
focused on custodial credit risk, which is the risk that the custodian of your money, either the
banks or brokerage firms, would fail to return your money. A table of three risk categories was
used to present these risks.
The new requirements, known as GASB No. 40, will simplify the presentation of the custodial
---- credit risk somewhat. However, GASB No. 40 requires significant new disclosures for investment
securities. This includes investments such as commercial paper and U.S. government securities.
A new required disclosure includes interest rate risk, which is the risk that changes in interest
rates will adversely affect the fair value of the investment. There are several options on how to
make this disclosure. Generally, it means grouping your investments by maturity dates and
displaying those amounts and dates in the footnotes.
You will also be required to disclose concentration of credit risk, which occurs when more than
5% of your investments are in a single issuer.
The new disclosures also include overall credit risk, which is the risk that the issuers will not
fulfill their obligations. You will need to disclose the current credit quality rating of your
investments to fulfill this requirement. This requirement applies to debt securities, such as
commercial paper, and also applies to money market funds and bond mutual funds. It does not
apply to U.S. government securities, which are presumed to have little or no credit risk.
Finally, the new rules require disclosure of your investment policy as it relates to the items
described above, or a statement that no such policy exists.
As you think ahead to your December 31, 2005 financial statements, these new requirements will
require additional information from you and your staff and very likely take more time than the
previous disclosures. We can assist you with these issues at your convenience.
ACCOUNTING AND F/NANC/AL REPORT/NG FOR POSTEMPLOYMENT BENEF/TS
In addition to pensions, many state and local governmental employers provide other
postemployment benefits (OPEB) as part of the total compensation offered to attract and retain
the services of qualified employees. OPEB includes postemployment healthcare, as well as other
forms of postemployment benefits (for example, life insurance) when provided separately from a
pension plan. Governmental Accounting Standards Board (GASB) Statement No. 45 establishes
standards for the measurement, recognition, and display of OPEB expense/expenditures and
related liabilities (assets), note disclosures, and if applicable, required supplementary
information (RSI) in the financial reports of state and local governmental employers. The new
standard applies to all governments which provide health insurance to employees, as OPEB includes a
calculation for even short continuations, such as is legally required by COBRA and for governments
which allow retired employees to continue insurance coverage under the governmenYs plan even when
the retirees pay the premium.
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Of the total benefits offered by employers to attract and retain qualified employees, some
benefits, including salaries and active-empioyee healthcare, are taken while the employees are
in active service (i.e. still working); whereas other benefits, including postemployment healthcare
and other OPEB, are taken after the employees' services have ended. Nevertheless, both types
of benefits constitute compensation for employee services.
From an accrual accounting perspective, the cost of OPEB, like the cost of pension benefits,
generally should be associated with the periods in which the service occurs, rather than with the
periods (often many years later) when benefits are paid or provided. However, in current
practice, most OPEB plans are financed on a pay-as-you-go basis, and financial statements
generally do not report the financial effects of OPEB until the promised benefits are paid. As a
result, current financial reporting generally fails to:
• Recognize the cost of benefits in periods when the related services are received by
the employer.
• Provide information about the actuarial accrued liabilities for promised benefits
associated with past services and .whether and to what extent those benefits have
been funded.
• Provide information useful in assessing potential demands on the employer's future
cash flows.
GASB No. 45 improves the relevance and usefulness of financial reporting by (a) requiring
systematic, accrual-basis measurement and recognition of OPEB cost (expense) over a
period that approximates employees' years of service and (b) providing information about
actuarial accrued liabilities associated with OPEB and whether and to what extent progress is
being made in funding the plan.
What does this all mean to your government? It means that you will need to begin measuring
the true annual cost and year end liability for OPEB. GASB No. 45 requires that you use an
outside actuary to make these measurements if you have 100 or more current or former
employees eligible to receive benefits. (For plans with fewer than 100 participants, there is a
simplified approach.) Once all of the information is available from the actuary, you will begin
reporting as an expense the true annual cost of such benefits, for both current and retired
employees.
Fortunately, you have some time to plan ahead for this effort. The effective date for you to
have this information is for your year beginning after December 15, 2007.
Since the actuary will be developing an accurate picture of your costs for OPEB, you will most
likely find that such information is useful when determining employee wage and benefit
packages.
The actual details of these calculations and the financial reporting requirements are quite
complex. Please feel free to discuss the impact of GASB No. 45 with your audit team.
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STATUS OF PRIOR YEAR MATTERS
Capitalization of Assets Policv
We recommended that the City consider establishing a higher capitalization threshold for capital
asset additions. The City was capitalizing items costing $500 or more. We believe the threshold
could be much higher for certain classes of assets. For example, buildings could easily have a
threshold of $25,000 to 50,000 and infrastructure an even higher threshold.
STATUS: The City updated its capitalization policy in 2004 to set the threshold at $5,000 or
more.
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City of Rosemount
SUMMARY OF PASSED ADJUSTING JOURNAL ENTRIES
December 31, 2004
Financial Statements Effect -
Increase (Decrease) to Financial Statement Total
Excess of
Total Total Rev. over
Assets Liabilities Expend.
Governmental Activities 28,619 - 28,619
Business-Type Activities 64,482 - 64,482
Major Fund (1) General Fund 9,548 - 9,548
Major Fund (2) Debt Service 8,429 - 8,429
Major Fund (3) Capital Project 5,153 - 5,153
Major Fund (4)Water Fund 27,231 - 27,231
Major Fund (5) Sewer Fund 25,350 - 25,350
Major Fund (6) Storm water Fund 11,901 - 11,901
Remaining Funds 5,489 - 5,489
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I CITY OF ROSEMOUNT, MINNESOTA
I COMPREHENSIVE ANNUAL FINANCIAL REPORT
� FOR THE YEAR ENDED DECEMBER 31 2004
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1 PREPARED BY THE DEPARTMENTS OF
ADMINISTRATION AND FINANCE
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JAMES D. VERBRUGGE, City Administrator
� JEFFREY A. MAY, Finance Director
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ROSEMOLINT
' MINNESOTA
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March 18, 2005
� To the Honorable Mayor, Council Members, Cit Mana er, and the Citizens of the Cit of
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Rosemount:
' Minnesota statutes require that all cities issue an annual financial report on its financial position
and activity prepared in accordance with generally accepted accounting principals (GAAP), and
' audited in accordance with generally accepted auditing standards by a firm of licensed certified
public accountants or the Office of the State Auditor. Pursuant to that requirement, we hereby
issue the comprehensive annual financial report of the City of Rosemount (the City) for the
fiscal year ended December 31, 2004.
' This report consists of managemenYs representations concerning the finances of the Cit .
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Consequently, management assumes full responsibility for the completeness and reliability of all
' of the financial information presented in this report. To provide a reasonable basis for making
these representations, management of the City has established a comprehensive internal control
framework that is designed to protect the government's assets from loss, theft, or misuse and to
' compile sufficient reliable information for the preparation of the City's financial statements in
conformity with GAAP. Because the cost of internal controls should not outweigh their benefits,
the City's comprehensive framework of internal controls has been designed to provide
reasonable rather than absolute assurance that the financial statements will be free from
' material misstatement. As management, we assert that, to the best of our knowledge and belief,
this financial report is complete and reliable in all material respects.
, The City of RosemounYs financial statements have been audited by Virchow, Krause &
Company, LLP, a firm of licensed certified public accountants. The goal of the independent audit
was to provide reasonable assurance that the financial statements of the City for the fiscal year
, ended December 31, 2004, are free of material misstatement. The independent audit involved
examining, on a test basis, evidence supporting the amounts and disclosures in the financial
statements; assessing the accounting principles used and significant estimates made b�
management; and evaluating the overall financial statement presentation. The independent
' auditor concluded, based upon the audit, that there was a reasonable basis for rendering an
unqualified opinion that the City's financial statements for the fiscal year ended December 31,
2004, are fairly presented in conformity with GAAP. The independent auditor's report is
' presented as the first component of the financial section of this report.
GAAP require that management provide a narrative introduction, overview, and analysis to
, accompany the basic financial statement in the form of Management's Discussion and Analysis
(MD&A). This letter of transmittal is designed to complement MD&A and should be read in
conjunction with it. The City of Rosemount's MD&A can be found immediately following the
report of the independent auditors.
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' SPIRIT OF PRIDE AND PROGRESS
' Rosemount City Hall • 2875 145th Strc�t West • Rosemount, MN 55068-4997
651 -423-441 1 • TDD/TTY 651 -423-621 9 • Fax 651 -423-5203
www.ci.rosemount.mn.us
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Profile of the Government I�
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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:
Population Percent
Population Increase Increase '
2004 Estimate 19,907 5,288 36%
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 121 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 increasing commercial/industrial development. Over 500 acres of industrial
and commercial zoned land have been reserved for development in Rosemount. 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
July 15 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 by September 15. The council is required to hold public hearings on the
proposed budget and to adopt a final budget by no later than December 20, the close of the
City's fiscal year.
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' In 1999 a Family Resource Center building in Rosemount began operations. 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 CAC to house their Rosemount operations.
Cash management policies and practices. Cash temporarily idle during the year was invested
' in certificates of deposit, obligations of the US Treasury, and government agencies. The
maturities of the investrnents ranged from 1 month to 15 years.
Risk management. The City is exposed to various risks of loss related to tort liability, theft of,
' damage to, or destruction of assets; errors or omissions; injuries to employees; or natural
disasters. The City has entered into a joint powers agreement with the League of Minnesota
Cities Insurance Trust (LMCIT). The LMCIT is a public entity risk pool currently operating as a
, common risk management and insurance program for Minnesota cities. The agreement for
formation of the LMCIT provides that the pool will be self-sustaining through member premiums
and will reinsure through commercial companies for claims in excess of reserved amounts for
' each insured event. The pooling agreement allows for the pool to make additional assessments
to make the pool self-sustaining. The City has determined that it is not possible to estimate the
amount of such additional assessments in the unlikely event that they are necessary.
, The City's workers compensation and employer's liability insurance policies provide statutory
coverage. The City elects to participate in the regular premium option offered by LMCIT with a
$2,500 medical deductible per occurrence for workers compensation and a $500 deductible per
' occurrence for liability insurance that offers substantial premium savings when the City has a
relatively small amount of claims. An insurance fund has been established to account for the
savings when the City has a low claim year in either of the insurance policies to offset the
negative effects that the City may have if the City has a high claim year. The City's plan is to
' continue to build reserves in this fund in the hope of raising the deductibles and working closer
towards self-insurance (although we realize that we will never be totally self-insured).
, The City has also contracted with a risk management-consulting firm to assist in the planning
and administering of our insurance needs. The City has been working with a firm since 1994 and
the positive impact on the City has been substantial. Advice given to the City in working towards
, self-insurance has proven very beneficial. Also, advice given to the City regarding areas that are
underinsured and areas that are over-insured have resulted in many changes, all of them
benefiting the City, and ultimately, its citizens.
, 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, 2003.
This was the eighth 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.
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The preparation of this report on a timely basis could not have been accomplished without the '
efficient and dedicated services of the Finance and Administration Departments. We wouid 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
financiai operations of the City in a responsible and progressive manner. '
Respectfully submitted,
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Jeffrey A. May James D. Verbrugge ,
Finance Director City Administrator
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� CITY OF ROSEMOUNT
' COMPREHENSIVE ANNUAL FINANCIAL REPORT
December 31, 2004
� TABLE OF CONTENTS
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' INTRODUCTORY SECTION
Letter of Transmittal �
� GFOA Certificate of Achievement xi
Organizational Chart xii
List of Elected and Appointed Officials xiii
' FINANCIAL SECTION
Independent Auditors' Report �
ManagemenYs Discussion and Analysis 2 - 10
' Basic Financial Statements:
Government-wide Financial Statements:
Statement of Net Assets 11
Statement of Activities �2
' Fund Financial Statements:
Balance Sheet—Governmental Funds 13
Staternent of Revenues, Expenditures and Changes in Fund Balances-
Governmental Funds 14
' Reconciliation of the Statement of Revenues, Expenditures and
Changes in Fund Balances of Governmental Funds to the Statement
of Activities 15
' Statement of Net Assets—Proprietary Funds 16
Statement of Revenues, Expenses, and Changes in Fund Net Assets-
Proprietary Funds 17
Statement of Cash Flows—Proprietary Funds 18—19
� Statement of Net Assets—Fiduciary Fund 20
Notes to the Financial Statements 21 —54
Required Supplementary Information:
' Schedule of Revenues Compared to Budget(Budgetary Basis)—Budget and
Actual—General Fund 55
Schedule of Expenditures and Other Uses (Budgetary Basis)—Budget and
Actual—General Fund 56
' Notes to Required Supplementary Information 57
Supplementary Information:
Combining and Individual Fund Statements and Schedules:
� Combining Balance Sheet—Nonmajor Governmental Funds 58—59
Combining Statement of Revenues, Expenditures and Changes in
Fund Balances—Nonmajor Governmental Funds 60—61
Schedules of Revenues, Expenditures and Changes in Fund Balances—Budget and Actual:
' Building CIP Special Revenue Fund 62
Street CIP Special Revenue Fund 63
Equipment CIP Special Revenue Fund 64
' Schedule of Changes in Assets and Liabilities—M.A.A.G. Agency Fund 65
Schedule of Capital Assets Used in the Operation of Governmental Funds—
Schedule—By Source 66
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CITY OF ROSEMOUNT I
COMPREHENSIVE ANNUAL FINANCIAL REPORT '
December 31, 2004
TABLE OF CONTENTS
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STATISTICAL SECTION (Unaudited) �
General Fund Expenditures and Other Financing Uses by Function 67
General Fund Revenues and Other Financing Sources by Source 68
Property Tax Levies and Coliections 69
Assessed Value (or Tax Capacity)and Estimated Market Value of �
All Taxable Property 70
Property Tax Rates-All Direct and Overlapping Governmental Units 71 -72
Schedule of the Ten Largest Taxpayers 73 '
Special Assessment Receivables and Collections 74
Computation of Legal Debt Margin 75
Ratio of Net Bonded Debt to Assessed Value (or Tax Capacity)and
Market Value and Net Bonded Debt Per Capita 76-77 '
Ratio of Annual Debt Service Expenditures For General Bonded Debt
to Total General Fund Expenditures 78
Computation of Direct and Overlapping Bonded Debt-General Obligation Bonds 79 '
Revenue Bond Coverage 80
Demographic Statistics g�
Property Value and Construction g2
Miscellaneous Statistics g3 '
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' 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 55-57
as part of the Required Supplemental 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 the eastern one-third of the City is largely heavy
industry, the middle one-third is largely agricultural and the western one-third is heavily
residential with a good mix of light industrial and commercial. Residential developments with
, hundreds of homes are currently under development and this pattern of growth will continue for
years to come. The fifteen largest taxpayers comprise a mix of industry, commerce and utilities
that represent approximately 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. 2004 labor force numbers were 2,951,682;
1,830,648; and 228,400 respectively with unemployment rates of 4.7%; 4.5% and 4.1% to match.
� These figures compare quite favorably with national figures.
Community leadership has preserved 302 beautiful acres of land for 23 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 of the City is guided by a
Comprehensive Land Use Plan, which was commissioned soon after the consolidation in 1971 of
the former Village and Town of Rosemount. The Plan outlines long-range zoning and
development policies of the City, and is designed to encourage and promote orderly development
' and growth which will perpetuate a sound tax base. This Plan was updated in 1999 and will
guide development until the year 2020.
' Other factors. The City of Rosemount has experienced another surge in residential construction
for the 2004 year. The number of new units brought into the community was 25% higher than
2003, with 56% of new construction being single family detached housing. The 551 units created
� $110,674,682 in additional building valuation, a 27% increase over the previous year. Planning
approvals by the City have created an inventory of land that should generate more than 500
housing starts annually in Rosemount for the next few years.
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RosemounYs City Council made substantial progress on several key goals for the community in '
2004. In 2003, a consultant was hired to work with a downtown committee, a 13 person working
group, to develop a downtown plan that could be implemented. In 2004, the Council approved
this revitalization plan for powntown Rosemount, and selection of an initial developer for a ,
project Downtown is likely in early 2005. Financial assistance will be available through a new tax
increment finance (TIF) district that also takes in a residential development, named Harmony,
which envisions more than 600 single and multi-family units on the redeveloped site of the '
Brockway glass factory.
Under the direction of another Council goal, the City negotiated the purchase of land at the edge '
of the Downtown owned by the Church of St. Joseph. The property will serve as the site of a
branch of the Dakota County Library. Construction of the library will complement the City's plans
for revitalization of the Downtown.
With the strong growth in residential properties, the City's goals also focus on attracting '
commercial and industrial development. The Council reguided an additional 32 acres of prime
real estate for commercial development. Construction began late in the year on a 48,000 square '
foot retail development at Trunk Highway 3 and County Road 42, and new dining options are
arriving in the community. The City is looking forward to providing more commercial and
industrial opportunities along the County Road 42 corridor in 2005. '
Four new commercial/industrial projects occurred in Rosemount during 2004. These projects
added $4,606,000 in building valuation to the community.
The City has acquired land immediately to the west of the Meadows of Bloomfield site for a �
future water storage facility, water treatment plant and fire station. City projects included the
extension of Connemara Trail from Biscayne Pointe 4th Addition east to Bloomfield 7th Addition; ,
the reconstruction of residential streets within the Broback 1St Znd and 3rd Additions; the
commencement of construction of the Connemara Trail overpass between Meadows of
Bloomfield and Bloomfield; and the completion of the drilling of Municipal Well #12. Additional
projects included the installation of a signal system on Trunk Highway 3 at Connemara Trail and '
the painting of the Chippendale water tower. Overall, in the year 2004, the City added 3.58 miles
of public streets, 5.67 miles of sanitary sewer, over five miles of storm sewers, and 4.63 miles of
water mains. '
The Police Department has continued to provide services and programs that are consistent with
the community-oriented policing philosophy. In 2004 these initiatives included: ,
• Patrol officers are assigned to specific geographic beats to patrol. This is done in an effort to
get the officers more familiar with the residents and issues within the area that they patrol on
a daily basis. Officers should be more effective in identifying problem locations, problem �
persons and issues within the beat. After becoming more familiar with area issues, it is
expected that officers will develop plans, often times with resident input, to address crime or
livability issues within their neighborhood. '
• Drug Abuse Resistance and Education (D.A.R.E.) — An officer taught students at three
F2osernount schools. Over 200 fifth grade students graduated from the program in 2004.
• National Night Out — Police and fire officials, along with City Council members, visited '
eighteen neighborhoods, including several town home associations and a new condominium
complex, on the first Tuesday of August as part of this nationwide event.
• Meeting with property managers of the community's multi-housing complexes to review
problem addresses and come up with remedies to the problems. '
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Certificate of
1 �
Achlevement
1 for Excellence
in Financial
1 .
Reporting
' Presented to
� City of Rosemount,
� Minnesota
, For its Comprehensive Annual
Financial Report
for the Fiscal Year Ended
, December 31, 2003
A Certificate of Achievement for Excellence in Financial
, Reporting is presented by the Govemment 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 fmancial reporting.
, �gE OFp¢ � 4��,�„�.�, �T'• .f . '._ .
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Q�� OFfNE ��n
W UN�STATES y .
`"""°" � President
yby CORPORATWN �
' >o�$�14.i.�oti
CNlC7W9
. l�7������?����
, Executive Director
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City of Rosemount
Organizational Chart
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_ _ - _ - _ _ _ _ _ _ _ _ _ _ - _ _ _
ICITY OF ROSEMOUNT
, CITY OFFICIALS
Year Ended December 31, 2004
� Term of Office Term Expires
' ELECTED OFFICIALS:
Mayor Bill Droste Four Years December 31, 2006
' Councilmember Mary Riley Four Years December 31, 2004
Councilmember Kevin Strayton Four Years December 31, 2004
Councilmember Kim Shoe Corrigan Four Years December 31, 2006
Councilmember Mark DeBettignies Four Years December 31, 2006
' APPOINTED OFFICIALS:
City Administrator James D. Verbrugge
' Finance Director Jeffrey A. May
Assistant City Administrator Dawn Weitzel
City Engineer Andy Brotzler
' Community Development Director Kim Lindquist
Police Chief Gary D. Kalstabakken
Fire Chief Scott W.Aker
Parks and Recreation Director Dan Schultz
, CONSULTANTS AND ADVISORS:
' Legal Kennedy&Graven
Fluegel & Moynihan, P.A.
Briggs & Morgan
Auditing Virchow, Krause& Company, LLP
' Fiscal Springsted, Inc.
Ehlers &Associates, Inc.
Engineering Bonestroo, Rosene,Anderlik&Associates
' Short-Elliot-Hendrickson, Inc.
WSB&Associates
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� Virchow�ause
&company
� INDEPENDENT AUDITORS' REPORT
, To The Honorable Mayor and Members of the City Council
City of Rosemount, Minnesota
� We have audited the accompanying financial statements 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 and for the year ended December 31, 2004, which collectively comprise the City's basic financial statements as
� listed in the table of contents. These financial statements are the responsibility of the City of RosemounYs
management. Our responsibility is to express opinions on these financial statements based on our audit. The prior
year summarized comparative information has been derived from the City's 2003 financial statements and, in our
, report date March 12, 2004, we expressed unqualified opinions on the respective financial statements of the
governmental activities, the business-type activities, the aggregate discretely presented component units, each
major fund, and the aggregate remaining fund information.
' We conducted our audit in accordance with auditing standards generally accepted in the United States of America.
Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the
financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence
' supporting the amounts and disclosures in the financial statements. An audit also includes assessing the
accounting principles used and significant estimates made by management, as well as evaluating the overall
financial statement presentation. We believe that our audit provides a reasonable basis for our opinions.
� In our opinion, the financial statements referred to above present fairly, in alf 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, 2004, and the respective
� changes in financial position and cash flows, where applicable, thereof for the year then ended in conformity with
accounting principles generally accepted in the United States of America.
� The management's discussion and analysis on pages 2 through 10 and the budgetary comparison schedules on
pages 55 through 57 are not required parts of the basic financial statements, but are supplementary information
required by the Governmental Accounting Standards Board. We have applied certain limited procedures, which
consisted principally of inquiries of management regarding the methods of ineasurement and presentation of the
' required supplementary information. However, we did not audit the information and express no opinion on it.
The Rosemount Port Authority, previously reported as a discreetly presented component unit, has been presented
� as a blended component unit.
Our audit was conducted for the purpose of forming opinions on the financial statements that collectively comprise
the City of RosemounYs basic financial statements. The introductory section, combining and individual fund
� statements and schedules, and statistical tables, 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. The combining and individual fund
statements and schedules have been subjected to the auditing procedures applied in the audit of the basic
' financial statements and, in our opinion, are fairly stated in all material respects in relation to the basic financial
statements taken as a whole. The introductory section and statistical tables have not been subjected to the
auditing procedures applied in the audit of the basic financial statements and, accordingly, we express no opinion
on them.
' ` �
�'r 1��
� Minneapolis, Minnesota
March 18, 2005
� Virchow, Krause & Company, LLP Page 1
Certified Public Accountants&Consultants • An Independent Member of Baker Tilly International
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Management's Discussion and Analysis
rAs 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,
, 2004. 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 iYs liabilities at the close of the most recent fiscal year by
$133,292,060 (net assets). Of this amount, $39,538,160 (unreserved net assets) may be used to meet
' the governmenYs ongoing obligations to citizens and creditors.
• The City's total net assets increased by $15,629,836. Approximately 56 percent of this increase is
attributable to capital assets contributed to the City by developers.
, • At year end, unreserved fund balance for the general fund, net of $561,887 designated for compensated
absences, was $4,383,289, 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 $3,360,000 (12 percent) during the current year. The reason for this
decrease was making scheduled payments and the fact that there were no new issues in 2004.
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 assets presents information on all of the City's assets and liabilities, with the difference
' between the two reported as net assets. Over time, increases or decreases in net assets 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 assets changed during the
most recent fiscal year. All changes in net assets 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
1 earned but unused vacation 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 alt 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, pubic 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 11-12 of this report.
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� 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.
1 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.
� The City maintains fifteen individual governmental funds. 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 and capital project fund, all of which are
considered major funds. Data from the twelve 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 13-15 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 16-19 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 statement 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, 2004.
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� 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 21-54 of this report.
Other information. The combining statements referred to earlier in connection with nonmajor governmental
funds are presented immediatety following the basic financial statements. Combining and individual fund
� statements and schedules can be found on pages 58-65 of this report.
Government-wide Financial Analysis
� As noted earlier, net assets may serve over time as a useful indicator of a government's financial position. In
the case of the City, assets exceeded liabilities by $133,292,060 at the close of the most recent fiscal year.
� The largest portion of the City's net assets (66 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 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.
� City of Rosemount's Net Assets
Governmental Business-type 2004 2003
, Activities Activities Total Total
Current and other assets $ 28,872,124 $ 20,263,037 $ 49,135,161 $ 45,457,992
' Capital assets 38,264,100 76,243,156 114,507,256 106,180,590
Total assets 67,136,224 96,506,193 163,642,417 151,638,582
Long-term liabilities outstanding 21,795,003 6,534,166 28,299,169 31,865,232
� Other liabilities 1,822,470 198,718 2,021,188 2,111,126
Totalliabilities 23,617,473 6,732,884 30,350,357 33,976,358
Net assets:
Invested in capital assets,
� net of related debt 17,030,985 69,812,374 86,843,359 82,170,804
Restricted 6,910,541 6,910,541 7,531,705
Unrestricted 26,487,766 13,050,394 39,538,160 27,959,715
� Total net assets $ 43,518,751 $ 89,773,309 $ 133,292,060 $ 117,662,224
An additional portion of the City's net assets (6 percent) represents resources that are subject to external
� restrictions on how they may be used. The remaining balance of unrestricted net assets ($39,538,160) 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
� assets, both for the government as a whole, as well as for its separate governmental and business-type
activities.
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� Governmental activities. Governmental activities increased the City's net assets by $5,908,324, thereby
accounting for 38 percent of the total growth in net assets of the City. Key elements of this increase are as
follows:
� City's Changes in Net Assets
' Governmental Business-type 2004 2003
Activities Activities Total Total
Revenues
� Program revenues:
Charges for services $ 4,190,263 $ 7,527,505 $ 11,717,768 $ 8,689,231
Operating grants and contributions 2,028,372 2,028,372 1,653,156
Capital grants and contributions 8,672,316 1,262,234 9,934,550 10,573,983
� General revenues:
Property taxes 7,969,316 7,969,316 7,386,916
Other taxes 141,642 141,642 133,525
� Intergovernmental revenues 14,402
Public gifts and/or grants 77,884
Investment income 376,200 440,306 816,506 781,340
� Other 29,244 29,244 73,127
Total revenues 23,407,353 9,230,045 32,637,398 29,383,564
Expenses:
General government 2,068,246 2,068,246 3,349,247
� Public safety 2,468,826 2,468,826 2,350,428
Public works 5,893,405 5,893,405 3,814,357
Recreation 1,154,709 1,154,709 1,099,990
� Community development 23,598 23,598 2,648
Interest on long-term debt 802,957 802,957 971,498
Water 1,763,570 1,763,570 1,254,352
Sewer 1,703,280 1,703,280 1,482,929
� Storm water 737,401 737,401 854,762
Arena 391,570 391,570 359,630
Total expenses 12,411,741 4,595,821 17,007,562 15,539,841
� Increase in net assets
before transfers 10,995,612 4,634,224 15,629,836 13,843,723
Transfers (5,087,288) 5,087,288
' Increase in net assets 5,908,324 9,721,512 15,629,836 13,843,723
Net assets — Beginning of Year 37,610,427 80,081,797 117,662,224 103,818,501
Net assets — End of Year $ 43,518,751 $ 89,773,309 $ 133,292,060 $ 117,662,224
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Expenses and Program Revenues — Governmental Activities
e ■Expenses
■Revenue
12
' 10
8
� Millions 6
4
, 2
0
General Govemment Public Safety Public Works Recreation Community Interest on long-term
Development debt
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� Revenues by Source - Governmental Activities
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rBusiness-type activities. Business-type activities increased the City's net assets by $9,721,512,
accounting for 62 percent of the total growth in the government's net assets.
� Expenses and Program Revenues - Business-type Activities
■Expenses
� � •Revenue
6
' 5
4
Millions
3
� 2
1
� 0
Water Sewer Storm water Ice Arena
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Revenues by Source - Business-type Activities
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Financial Analysis of the Government's Funds
' As noted earlier, the City uses fund accounting to ensure and demonstrate compliance with finance-related
legal requirements.
� Governmenta/ funds. The focus of the City's governmental funds is to provide information on near-term
inflows, outflows, and balances of spendable resources. Such information is useful in assessing the City's
financing requirements. In particular, unreserved fund balance may serve as a useful measure of a
tgovernment's net resources available for spending at the end of the fiscal year.
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tAs of the end of the current fiscal year, the City's governmental funds reported combined ending fund balances
of $22,354,890, an increase of $1,772,402 in comparison with the prior year. Approximately 48 percent of this
� total amount ($10,682,151) constitutes unreserved fund balance, which is available for spending at the
government's d iscretion. T he r emainder of t he f und balance i s r eserved to i ndicate t hat it is not available f or
new spending because it has already been committed to 1) liquidate contracts and purchase orders of the prior
year ($2,133,683), 2) pay debt service ($9,508,673), and 3) prepaid items $30,383.
' The general fund is the chief operating fund of the City. At the end of the current fiscal year, unreserved fund
balance of the general fund was $4,945,176, while total fund balance reached $5,478,748. The following table
� shows year-end general fund balances as compared to the adopted expenditure budget of the following year:
Fund Balance
Year Budget Amount Percent of Next Budget
' 1995 $ 4,294,749 $ 1,497,828 33%
1996 4,531,935 1,583,375 35%
1997 4,578,300 1,928,980 41%
' 1998 4,715,600 2,438,384 50%
1999 4,855,900 3,054,533 58%
2000 5,258,318 3,716,529 66%
2001 5,663,200 3,765,603 58%
' 2002 6,501,600 5,126,656 70%
2003 7,338,100 4,061,256 55%
2004 7,409,400 4,383,289 * 55%
' 2005 7,996,100
"This amount represents the unreserved general fund balance net of amount designated for compensated absences
During the current fiscal year, unreserved fund balance in the general fund increased by $437,395. The
' increase was intentional as the City has determined, through the adoption of a formal Fund Balance Policy, it
would I ike to m aintain a m aximum unreserved fund balance of 5 5 p ercent of t he next general f und o perating
expenditure budget. F orty to f ifty percent normally provides adequate working c apital t o f inance general f und
' operations until property taxes and state aids are received. The desired unreserved 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, 2004, 88 percent of the unreserved fund balance of the general fund has been designated
to meet working capital needs and 12 percent has been designated to cover the compensated absences liability.
' The debt service fund balance decreased by $51,561 due to scheduled debt payments. The capital projects
fund balance decreased by $257,762 due to transfers out of capital projects, timing of projects, and developer
contributions.
' 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 assets of the public utilities funds at the end of the year amounted to $13,011,000 and those
for the arena fund amounted to $39,394. The growth in total net assets for the public utilities funds was
$9,789,458 and the decrease in total net assets for the arena fund was $67,946.
' General Fund Budgetary Highlights
' The only significant variances between final budgeted revenues and actual amounts was in the area of licenses
and permits, as the City experienced a record growth year. Actual expenditures were less than budgeted for
most activities. The key factor was the uncertainty that the City had with regards to the aid provided by the
state.
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' 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, 2004, amounts to $114,507,256 (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 capitat asset additions totaling over $15,299,000 for the year, developers paid for approximately
' $8,025,000 of them.
City of Rosemount's Capital Assets
' (net of depreciation)
Governmental Business-type
' Activities Activities Total
Land $ 4,392,454 $ 1,609,237 $ 6,001,691
Land improvements 499,517 - 499,517
, Buildings 7,851,123 4,988,671 12,839,794
Machinery and equipment 2,804,367 599,005 3,403,372
Mains and lines - 60,799,197 60,799,197
' Infrastructure 19,825,388 - 19,825,388
Construction in progress 2,891,251 8,247,046 11,138,297
Total capital assets $ 38,264,100 $ 76,243,156 $ 114,507,256
' Additional information on the City's capital assets can be found in Note IV.C. on pages 38-40 of this report.
Long-term debt. At the end of the current fiscal year, the City had total bonded debt outstanding of
, $26,870,000 (including debt recorded in the Port Authority). Of this amount, $11,340,000 was for general
obligation improvement debt which has financed special assessment construction as part the continuing
development within the City. An additional $7,150,000 was general obligation debt issued by the Port Authority
� which financed the City's economic development and redevelopment programs. Another $6,475,000 was
general obligation revenue bond debt issued to add to and improve the water and storm water utility systems
within the City. The remaining $1,905,000 was general obligation and general obligation refunding debt.
, The C ity's total d ebt decreased by $3,360,000 ( 12 percent) d uring t he c urrent f iscal year. The decrease was
due to the scheduled retirement of bonded debt and no new debt being issued.
' Cities in Minnesota may issue general obligation debt up to a maximum of 2 percent of the total estimated
market value of property within the city, per state statutes. The current debt limit for the City is $32,132,334. Of
the City's $26,870,000 in outstanding debt at the current fiscal year end, $1,561,485 is subject to the
' restrictions placed by state statute.
The City's bond rating remains at A1 in 2004. This excellent rating has 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.
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' Economic Factors
' • Dakota County's unemployment rate ended the year at 4.1 percent, which compares favorably with the
state unemployment rate of 4.5 percent, and the national unemployment rate of 4.7 percent.
• City building permits continued their upward movement in both quantity and value in 2004. A total of
1,158 permits with a total valuation of $126,348,047 were issued in 2004.
' 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 145th Street West,
Rosemount, Minnesota 55068-4997.
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Page 10
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� CITY OF ROSEMOUNT
' STATEMENT OF NET ASSETS
December 31, 2004
(With Comparative Totals for December 31, 2003)
, Business-
Governmental Type Totals
' Activities Activities 2004 2003
ASSETS
Cash and investments $ 24,326,440 $ 18,375,608 $ 42,702,048 37,786,731
' Receivables(net of allowance for uncollectibles) _
Taxes 593,875 593,875 531,873
Delinquent taxes 113,870 - 113,870 106,839
Accounts 90,016 756,141 846,157 732,576
' Loans 578,597 - 578,597 618,431
Special assessments 3,480,742 487,585 3,968,327 5,465,761
Due from other governmental units 123,486 57,217 180,703 56,064
' Internal balances (519,059) 519,059 - -
Prepaid items 84,157 67,427 151,584 159,717
Capital assets:
' Land 4,392,454 1,609,237 6,001,691 3,974,730
Construction in progress 2,891,251 8,247,046 11,138,297 14,025,023
Land improvements 959,852 - 959,852 936,547
' Buildings 9,938,567 6,144,727 16,083,294 15,987,784
Machineryandequipment 6,763,400 1,661,116 8,424,516 8,333,974
Infrastructure 25,509,800 90,484,043 115,993,843 104,394,537
Less: accumulated depreciation (12,191,224) (31,903,013) (44,094,237) (41,472,005)
' Total Assets 67,136,224 96,506,193 163,642,417 151,638,582
' LIABILITIES
Accounts payable 1,426,225 57,798 1,484,023 1,433,305
Accrued payroll and payroll taxes 141,392 141,392 95,111
Other accrued liabilities and deposits 254,853 140,920 395,773 582,710
' Noncurrent liabilities:
Due within one year 3,503,914 735,000 4,238,914 3,786,063
Due in more than one year 18,291,089 5,799,166 24,090,255 28,079,169
' Total Liabilities 23,617,473 6,732,884 30,350,357 33,976,358
, NET ASSETS
Invested in capital assets, net of related debt 17,030,985 69,812,374 86,843,359 82,170,804
Restricted - 6,910,541 6,910,541 7,531,705
Unrestricted 26,487,766 13,050,394 39,538,160 27,959,715
� Total Net Assets $ 43,518,751 $ 89,773,309 $ 133,292,060 $ 117,662,224
'
,
See accompanying notes to financial statements.
' Page 11
CITY OF ROSEMOUNT
STATEMENT OF ACTIVITIES
For the Year Ended December 31,2004
(With Comparative Totals for the Year Ended December 31,2003)
Net(Expense)Revenue and
Program Revenues Changes in Net Assets
Operating Capital Primary Government
Charges for Grants and Grants and Governmental Business-Type Totals
Functions/Proqrams Expenses Services Contributions Contributions Activities Activities 2004 2003
Primary government.
Governmental activities:
Generalgovernment $ 2,068,246 $ 2,591,883 $ 65,600 $ - $ 589,237 $ - $ 589,237 $ (151,131)
Publicsafety 2,468,826 135,673 182,122 - (2,151,031) - (2,151,031) (2,067,811)
Publicworks 5,893,405 97,140 1,738,997 8,672,316 4,615,048 - 4,615,048 6,712,564
Culture,education and recreation � 1,154,709 1,365,568 23,633 - 234,491 - 234,491 (744,009)
Conservation and economic development 23,598 - 18,019 - (5,579) - (5,579) (779,317)
Interest and fiscal charges 802,957 (802,957) - (802,957) (1,332,563)
TotalGovemmentalActivities 12,411,741 4,190,263 2,028,372 8,672,316 2,479,210 - 2,479,210 1,637,733
Business type activities
Water 1,763,570 3,361,166 - 288,615 - 1,886,211 1,886,211 1,469,217
Sewer 1,703,280 2,089,244 - 126,936 - 512,900 512,900 881,221
Storm Water 737,401 1,739,183 - 846,683 - 1,848,465 1,848,465 1,399,627
Arena 391,570 337,912 - -
(53,658) (53,658) (11,269)
TotalBusiness-TypeActivities 4,595,821 7,527,505 1,262,234 4,193,918 4,193,918 3,738,796
Totalprimarygovernment $ 17,007,562 $ 11,717,768 $ 2,028,372 $ 9,934,550 2,479,210 4,193,918 6,673,128 5,376,529
General revenues:
Taxes
Property taxes,levied for general purposes 6,325,217 - 6,325,217 6,082,374
Property taxes,levied for debt service 1,644,099 - 1,644,099 1,304,542
Othertaxes 141,642 - 141,642 133,525
Intergovernmental revenues not restricted to
specific programs - - - 14,402
Public gifts and/or grants - - - 77,884
Investmentincome 376,200 440,306 816,506 781,340
Miscellaneous 29,244 - 29,244 73,127
Transfers (5,087,288) 5,087,288
Total general revenues and transfers 3,429,114 5,527,594 8,956,708 8,467,194
Change in net assets 5,908,324 9,721,512 15,629,836 13,843,723
Net assets-beginning 37,610,427 80,051,797 117,662,224 103,818,501
Net Assets-Endi�g $ 43,518,751 $ 89,773,309 $ 133,292,060 $ 117,662,224
See accompanying notes to financial statements.
Page 12
_ _ _ _ _ _ _ - _ _ _ _ _ _ _ _ _ - -
� CITY OF ROSEMOUNT
' BALANCE SHEET-GOVERNMENTAL FUNDS
December 31,2004
� Other Total
Governmental Governmental
General Debt Service Capital Projects Funds Funds
ASSETS
, Cash and investments $ 5,419,678 $ 9,441,517 $ 3,656,520 $ 5,226,790 $23,744,505
Receivables:
Taxes 586,594 - - 7,281 593,875
� Accounts 59,901 = - 20,987 80,888
Loans 578,597 578,597
Special assessments 88,735 3,220,802 - 171,205 3,480,742
Delinquent special assessments 580 102,581 - 10,709 113,870
, Due from other governmental units 8,316 = 115,170 = 123,486
Due from other funds 297 297
Prepaid items 30,048 - - 335 30,383
, Total assets $ 6,194,149 $ 12,764,900 $ 3,771,690 $ 6,015,904 $28,746,643
LIABILITIES AND FUND BALANCES
' Liabilities:
Accounts payable $ 270,899 $ - $ 557,558 $ 82,643 $ 911,100
Accrued payroll and payroll taxes 141,392 - - - 141,392
' Due to other funds - _ = 2g7 2g7
Deposits payable 31,450 31,450
Contracts payable - - 501,262 - 501,262
Deferred revenue 271,660 3,256,227 - 759,306 4,287,193
, Advances from other funds - - - 519,059 519,059
Totalliabilities 715,401 3,256,227 1,058,820 1,361,305 6,391,753
, Fund balances
Reserved for:
Debt service - 9,508,673 - - 9,508,673
Encumbrances 503,524 - - 1,630,159 2,133,683
, Prepaid items 30,048 335 30,383
Unreserved and designated,reported in:
General fund 4,931,177 - - - 4,931,177
' Capital projects = = 2,712,870 - 2,712,870
Special projects 3,117,074 3,117,074
Unreserved and undesignated(deficit),reported in:
� General fund 13,999 = - - 13,999
Special revenue funds (92,969) (92,969)
Total fund balances 5,478,748 9,508,673 2,712,870 4,654,599 22,354,890
Total liabilities and fund balances $ 6,194,149 $ 12,764,900 $ 3,771,690 $ 6,015,904
� Amounts reported for governmental activities in the statement of net assets are different because:
Capital assets used in governmental funds are not financial resources and,therefore,are not reported in the funds. 38,264,100
, Some receivab�es 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. 4,287,193
� Internal service funds are reported in the statement of net assets as governmental activities. 630,973
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. (22,018,405)
' MET ASSETS OF GOVERNMENTAL ACTIVITIES $43,518,751
See accompanying notes to financial statements.
' Page 13
�
CITY OF ROSEMOUNT '
STATEMENT OF REVENUES, EXPENDITURES '
AND CHANGES IN FUND BALANCES-GOVERNMENTAL FUNDS
For the Year Ended December 31, 2004
Other Total '
Governmental Governmental
General Debt Service Capital Projects Funds Funds '
REVENUES
Taxes $ 5,136,759 $ 1,437,546 $ - $ 1,536,653 $ 8,110,958
Intergovernmental 218,832 - 1,710,697 54,209 1,983,738 �
Public charges for services 1,473,581 - - 1,324,616 2,798,197
Licenses and permits 1,295,164 - - - 1,295,164
Fines and forfeitures 96,902 2,045 - - 98,947
Special assessments 41,183 1,077,740 330,900 140,203 1,590,026 '
Investment income and miscellaneous 214,120 172,040 8,073,381 85,422 8,544,963
Total Revenues 8,476,541 2,689,371 10,114,978 3,141,103 24,421,993
EXPENDITURES ,
Current:
General government 1,880,941 - - 17,798 1,898,739
Public safety 2,233,232 - - 1,135 2,234,367 '
Pubiic works 2,037,603 - 12,661 572,841 2,623,105
Parks and recreation 980,841 - - - 980,841
Capital outlay - - 11,820,615 648,871 12,469,486
Debt service: '
Principal retirement - 2,760,000 - 251,929 3,011,929
Interest and fiscal charges - 913,131 - 68,670 981,801
Total Expenditures 7,132,617 3,673,131 11,833,276 1,561,244 24,200,268 '
Excess(deficiency)of revenues
over(under)expenditures 1,343,924 (983,760) (1,718,298) 1,579,859 221,725 '
OTHER FINANCING SOURCES (USES)
Sale of capital assets - - - 6,350 6,350
Transfers in 11,677 932,199 1,987,884 683,509 3,615,269 �
Transfers out (590,000) - (527,348) (953,594) (2,070,942)
Total Other Financing Sources (Uses) (578,323) 932,199 1,460,536 (263,735) 1,550,677
Net Change in Fund Balance 765,601 (51,561) (257,762) 1,316,124 1,772,402 �
FUND BALANCES- Beginning 4,713,147 9,560,234 2,970,632 3,338,475 20,582,488
FUND BALANCES -ENDING $ 5,478,748 $ 9,508,673 $ 2,712,870 $ 4,654,599 $ 22,354,890 ,
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See accompanying notes to financial statements.
Page 14 '
� 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, 2004
' Net change in fund balances -total governmentai funds $ 1,772,402
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 assets 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 12,469,488
Less: Some items reported as capital outlay but not capitalized (2,495,361)
Some items reported as capital outlay in the fund statements but are shown as
1 transfers in the government-wide statements. (6,631,615)
Depreciation is reported in the government-wide statements (1,235,075)
In the statement of activities, only the gain or loss ($110,586)on the disposal of
, capital assets is reported. In the fund financial statements, proceeds from the sale
of capital assets ($6,350)are reported because the proceeds increase
financial resources. (104,236)
� Internal service funds are reported in the statement of activities. 21,695
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. (1,014,641)
, Repayment of debt principal is an expenditure in the governmental funds, but the
repayment reduces long-term liabilities in the statement of net assets. This is the amount
of principal payments paid. 3,011,929
, 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 (65,106)
Accrued interest on debt 178,844
� CHANGE IN NET ASSETS OF GOVERNMENTAL ACTIVITIES $ 5,908,324
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� See accompanying notes to financial statements.
, Page 15
�
CITY OF ROSEMOUNT '
STATEMENT OF NET ASSETS-PROPRIETARY FUNDS
December 31,2004 ,
Business-Type Activities-Enterprise Funds
Governmental '
Activities-
Storm Non-major Internal Service
Water Sewer Water Arena Total Fund �
ASSETS
Current assets:
Cash and investments $ 7,056,853 $ 5,880,026 $ 5,434,406 $ 4,323 $ 18,375,608 $ 581,935
Customer accounts receivable 324,440 282,626 149,075 - 756,141 9,128 ,
Special assessments receivable 84,897 254,403 148,285 - 487,585 -
Due from other governments - - - 57,217 57,217 -
Prepaid items 6,307 56,064 2,534 2,522 67,427 53,774
Total current assets 7,472,497 6,473,119 5,734,300 64,062 19,743,978 644,837 �
Non-current assets
Advance to other funds - 618,046 - - 618,046 -
Property and equipment: '
Land 515,101 - 1,094,136 - 1,609,237 -
Buildings 2,619,393 263,014 862,420 2,399,900 6,144,727 -
Mains and lines 8,502,571 6,490,469 10,247,767 - 25,240,807 -
Other improvements 15,709,459 36,983,749 12,550,028 - 65,243,236 - '
Machinery and equipment 973,863 449,675 142,980 94,598 1,661,116 -
Construction in progress 2,742,387 1,443,443 4,061,216 - 8,247,046 -
Less accumulated depreciation (7,464,495) _ (20,339,041) (3,565,761) (533,716) (31,903,013) -
Net property and equipment 23,598,279 25,291,309 25,392,786 1,960,782 76,243,156 - �
Total non-current assets 23,598,279 25,909,355 25,392,786 1,960,782 76,861,202 -
Totai Assets 31,070,776 32,382,474 31,127,086 2,024,844 96,605,180 644,837 �
LIABILITIES
Current liabilities:
Accounts payable 32,949 9,693 8,678 6,478 57,798 13,864 '
Accrued liabilities 10,655 9,059 3,422 4,684 27,820 -
Accrued interest 37,419 - 75,681 - 113,100 -
Current portion of long term debt 380,000 - 355,000 - 735,000 -
Total current liabilities 461,023 18,752 442,781 11,162 933,718 13,864 '
Noncurrent liabilities:
Accrued compensated absences 38,545 38,545 12,788 13,506 103,384 -
General obligation debt 1,999,066 - 3,696,716 - 5,695,782 - '
Advances from other funds 98,987 - - - 98,987 -
Total noncurrent liabilities 2,136,598 38,545 3,709,504 13,506 5,898,153 -
Total Liabilities 2,597,621 57,297 4,152,285 24,668 6,831,871 13,864
NET ASSETS �
Invested in capital assets,net of related debt 21,219,213 25,291,309 21,341,070 1,960,782 69,812,374 -
Restricted for debt service 2,395,000 435,541 4,080,000 - 6,910,541 -
�Jnrestricted 4,858,942 6,598,327 1,553,731 39,394 13,050,394 630,973 '
TOTAL NET ASSETS $ 28,473,155 $ 32,325,177 $ 26,974,801 $ 2,000,176 $ 89,773,309 $ 630,973
�
�
See accompanying notes to financial statements.
Page 16 '
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� CITY OF ROSEMOUNT
STATEMENT OF REVENUES,EXPENSES AND CHANGES IN FUND
' NET ASSETS-PROPRIETARY FUNDS
For the Year Ended December 31,2004
' Business-Type Activities-Enterprise Funds _
Governmental
Activities-
Storm Non major Intemal Service
� Water Sewer Water Arena Total Funds -
OPERATING REVENUES
Charges for services $ 1,004,057 $ 1,124,398 $ 601,737 $ 337,912 $ 3,068,104 $
Water meters 185,083 - - - 185,083 -
� Miscellaneous - 1,149 77 - 1,226 34,443
Total Operating Revenues 1,189,140 1,125,547 601,814 337,912 3,254,413 34,443
OPERATING EXPENSES
� Personnel services 333,668 340,086 127,819 159,098 960,671 -
Supplies 275,499 28,597 2,349 36,430 342,875 77
Professional services and charges 79,878 28,048 40,940 8,397 157,263 26,957
Other services and charges 486,043 71,844 28,847 133,311 720,045 215,156
Metro sewer charges - 546,452 - - 546,452 -
� Depreciation 487,874 682,981 347,928 54,334 1,573,117 -
Total Operating Expenses 1,662,962 1,698,008 547,883 391,570 4,300,423 242,190
Operating Income(Loss) (473,822) (572,461) 53,931 (53,658) (1,046,010) (207,747)
' NONOPERATING REVENUES(EXPENSES) _
Connection fees 1,957,729 951,911 1,132,937 - 4,042,577
Taxes - - - - - 225,000
' Special assessments 75,140 62,940 115,760 - 253,840 �
Investment income 138,665 194,360 113,785 212 447,022 4,442
Net increase(decrease)in fair value of investment (8,850) 2,015 119 (6,716)
Loss from disposal of fixed assets (270) (82) - - (352) -
Surcharges and penalties 214,297 11,786 4,432 - 230,515 -
� Interest expense and fiscal agent fees (100,338) (5,190) (189,518) - (295,046) -
Total Nonoperating Revenues 2,276,373 1,217,740 1,177,515 212 4,671,840 229,442
Income(loss)before contributions
� and transfers 1,802,551 645,279 1,231,446 (53,446) 3,625,830 21,695
Capital contributions 1,047,011 2,187,862 4,405,136 - 7,640,009 -
Transfers in - - 64,000 - 64,000 -
' Transfers out (459,495) (162,263) (972,069) (14,500) (1,608,327) - �
Change in Net Assets 2,390,067 2,670,878 4,728,513 (67,946) 9,721,512 21,695
TOTAL NET ASSETS-Beginning 26,083,088 29,654,299 22,246,288 2,068,122 80,051,797 609,278
� TOTAL NET ASSETS-ENDING $28,473,155 $32,325,177 $26,974,801 $2,000,176 $89,773,309 $ 630,973
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See accompanying notes to financial statements.
, Page 17
CITY OF ROSEMOUNT
STATEMENT OF CASH FLOWS
PROPRIETARY FUNDS
For the Year Ended December 31,2004
Business-Type Activities-Enterprise Funds
Governmental
Activities-
Water Sewer Storm Non major I�ternal
Utility Utility Water Arena Total Service Funds
CASH FLOWS FROM OPERATING ACTIVITIES
Cash received from customers $ 3,366,280 $ 2,147,071 $ 1,848,823 $ 326,326 $ 7,688,500 $ 26,973
Cash paid to suppliers for goods and services (1,027,600) (747,751) (103,675) (202,305) (2,081,331) (227,198)
Cash paid to employees forservices (270,354) (276,688) (101,923) (131,861) (780,826) -
Net Cash Flows From(Used by)Operating Activities 2,068,326 1,122,632 1,643,225 (7,840) 4,826,343 (200,225)
CASH FLOWS FROM NONCAPITAL FINANCING ACTIVITIES
Property taxes - - - - - 225,000
Transfers from other funds - - - (14,500) (14,500) -
Net Cash Flows From(Used by)Noncapital Financing Activities - - - (14,500) (14,500) 225,000
CASH FLOWS FROM INVESTING ACTIVITIES
investment income 129,815 196,375 113,904 212 440,306 4,442
Net Cash Flows From Investing Activities 129,815 196,375 113,904 212 440,306 4,442
CASH FLOWS FROM CAPITAL AND REI.ATED
FINANCING ACTIVITIES
Debt retired (260,000) - (340,000) - (600,000) -
Capital advances to other funds (4,811) (265,138) - - (269,949)
Interest paid (104,180) (5,190) (190,214) - (299,584) -
Capital contributions 799,280 2,246,787 4,265,886 - 7,311,953 -
Acquisition and construction of capital assets (1,530,050) (2,443,147) (5,123,241) - (9,096,438) -
Net Cash Flows Used by Capital and
Related Financing Activities (1,099,761) (466,688) (1,387,569) - (2,954,018) -
Net increase(Decrease)in Cash
and Cash Equivalents 1,098,380 852,319 369,560 (22,128) 2,298,131 29,217
CASH AND CASH EQUIVALENTS-Beginning of Year $ 5,958,473 $ 5,027,707 $ 5,064,846 $ 26,451 16,077,477 552,718
CASH AND CASH EQUIVALENTS-END OF YEAR $ 7,056,853 $ 5,880,026 $ 5,434,406 $ 4,323 $ 18,375,608 $ 581,935
Page 18
� � � � � � � r � � � � � � � � � � �
� � r � � � � � � � � � � � � � � � �
Business-Type Activities-Enterprise Funds
Governmental
Activities-
Water Sewer Storm Non major Internal
Utility Utility Water Arena Total Service Funds
RECONCILIATION OF OPERATING INCOME TO NET
CASH FLOWS FROM OPERATING ACTIVITIES
Operating income(loss) $ (473,822) $ (572,461) $ 53,931 $ (53,658) $ (1,046,010) (207,747)
Non-operating income 2,246,896 1,026,555 1,253,129 - - -
Adjustments to Reconcile Operating Income to
Net Cash Flows From Operating Activities
Noncash items included in income
Depreciation 487,874 682,981 347,927 54,334 1,573,116 -
Change in assets and liabilities
Accounts receivable (69,756) (5,031) (6,120) - (80,907) (7,470)
Due from other governments - - - (11,586) (11,586) -
Due from other funds - - _ _ _ _
Prepayments 743 (5,698) 314 855 (3,786) 13,873
Accounts payable (126,556) (6,669) (6,282) 712 (138,795) 1,119
Deposits 865 - - 865
Accrued liabilities 2,082 2,955 326 1,503 6,866 -
NET CASH FLOWS FROM(USED BY)
OPERATING ACTIVITIES $ 2,068,326 $ 1,122,632 $ 1,643,225 $ (7,840) $ 4,826,343 $ (200,225)
Non-cash capital,investing&financing activities:
The Water Utility received contributed plant of$213,475 during the year.The Sewer Utility received contributed plant of$15,546 during the year.
The Storm Water Utility received contributed plant of$100,950 during the year.
See accompanying notes to financial statements.
Page 19
,
CITY OF ROSEMOUNT ,
STATEMENT OF NET ASSETS �
FIDUCIARY FUNDS
December 31, 2004
M.A.A.G. �
Agency
Fund �
ASSETS
Cash and investments $ 14,566
LIABIUTIES '
Due to M.A.A.G. 14,566
NET ASSETS $ - '
'
,
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'
�
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'
'
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�
See accompanying notes to financial statements.
Page 20 �
'
� CITY OF ROSEMOUNT
� INDEX TO NOTES TO FINANCIAL STATEMENTS
December 31, 2004
, NOTE Paqe
I. Summary of Significant Accounting Policies 22
, A. Reporting Entity 22
B. Government-Wide and Fund Financial Statements 23
C. Measurement Focus, Basis of Accounting,
� and Financial Statement Presentation 25
D. Prior Period Information 27
E. Assets, Liabilities, and Net Assets or Equity 28
� 1. Deposits and Investments 28
2. Receivables 28
3. Inventories and Prepaid Items 29
4. Capital Assets 30
, 5. Other Assets 31
6. Compensated Absences 31
7. Long-Term Obligations/Conduit Debt 32
� 8. Claims and Judgments 32
9. Equity Classifications 33
10. Comparative Data/Reclassifications 33
� II. Reconciliation of Government-Wide and Fund Financial Statements 34
A. Explanation of Certain Differences Between the
Governmental Fund Balance Sheet and the Statement of Net Assets 34
� III. Stewardship, Compliance, and Accountability 34
A. Budgetary Information 34
, B. Excess Expenditures Over Appropriations 35
C. Deficit Balances 35
IV. Detailed Notes on All Funds 35
� A. Deposits and Investments 35
B. Receivables 37
C. Capital Assets 38
1 D. Interfund Receivables/Payables and Transfers 40
E. Long-Term Obligations 43
F. Lease Disclosures 46
� G. Net Assets/Fund Balances 46
V. Other Information 49
A. Employees' Retirement System 49
' B. Risk Management 53
C. Commitments and Contingencies 54
�
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' Page 21
'
CITY OF ROSEMOUNT '
NOTES TO FINANCIAL STATEMENTS �
December 31, 2004
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 financial statements of the City have been prepared in conformity with generally accepted
accounting principles, as applied to governmental units by the Governmental Accounting
Standards Board (GASB). The more significant accounting policies of the City are described '
below.
A, REPORTING ENT/TY '
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. Each discretely presented component unit is reported in a separate
column in the government-wide financial statements (see note below for description) to emphasize
that it is legally separate from the government. �
Blended Component Unit
Rosemount Port Authorify ,
The Port Authority serves all the citizens of the government and is governed by a board comprised �
of the governmenYs elected council. The bond issuance authorizations are approved by the
governmenYs 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 22 ,
�
� CITY OF ROSEMOUNT
� NOTES TO FINANCIAL STATEMENTS
December 31, 2004
� NOTE I - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (COI1t.�
B. GOVERNMENT-W/DE AND FUND FINANCIAL STATEMENTS
� Government-Wide Financial Statements
� The statement of net assets and statement of activities display information about the reporting
government as a whole. They include all funds of the reporting entity. 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 assets/fund equity, revenues, and
expenditure/expenses.
' Separate financial statements are provided for governmental funds and proprietary funds. 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. 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, liabilities, 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 test is at least 5 percent of the corresponding total for all governmental and
enterprise funds combined.
c. In addition, any other governmental or proprietary fund that the City believes is particularly
important to financial statement users may be reported as a major fund.
�
' Page 23
'
CITY OF ROSEMOUNT �
NOTES TO FINANCIAL STATEMENTS
December 31, 2004 �
NOTE I - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (COCit.� �
B. GOVERNMENT-W/DE AND FUND F/NANCIAL STATEMENTS (COtlt.�
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 — accounts for resources accumulated and payments made for principal
and interest on long-term debt other than TID or enterprise fund debt.
Capital Projects Fund — accounts for proceeds from long-term borrowing and other
resources to be used for capital improvement projects. �
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 the proceeds of specific revenue sources �
(other than major capital projects) that are legally restricted to expenditures for specified
purposes.
Building CIP Fund ,
Street CIP Fund
Equipment CIP Fund
Mississippi River Grant Fund '
Park Improvements Fund
Tree Disease Grant Program Fund
Great River Energy Project Fund �
Crime Reduction Fund
Fire Safety Fund
GIS Fund �
Port Authority TIF 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 24 t
'
ICITY OF ROSEMOUNT
' NOTES TO FINANCIAL STATEMENTS
December 31, 2004
' NOTE I - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (C011t.�
B. GOVERNMENT-W/DE AND FUND F/NANCIAL STATEMENTS (C011t.�
� 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.
C. MEASUREMENT FOCUS, BASIS OF ACCOUNTING AND F/NANC/AL STATEMENT PRESENTATION
� Government-Wide Financial Statements
� The government-wide statement of net assets 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. Taxes receivable for the following year are recorded as receivables and deferred revenue.
' 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.
' The business-type activities follow all pronouncements of the Governmental Accounting Standards
Board, and have elected not to follow Financial Accounting Standards Board pronouncements
issued after November 30, 1989.
� 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 25
�
CITY OF ROSEMOUNT '
NOTES TO FINANCIAL STATEMENTS �
December 31, 2004
NOTE I - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (COtlt.� '
C. MEASUREMENT FOCUS, BAS/S OF ACCOUNTING AND FINANCIAL STATEMENT PRESENTATION
(COtlt.) �
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 in the year levied as receivables and deferred revenues. They are '
recognized as revenues in the succeeding year when services financed by the levy are being
provided.
Intergovernmental aids and grants are recognized as revenues in the period the City is entitled 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.
'
Page 26 '
'
' CITY OF ROSEMOUNT
' NOTES TO FINANCIAL STATEMENTS
December 31, 2004
, NOTE I - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (COCIt.�
C. MEASUREMENT FOCUS, BAS/S OF ACCOUNTING AND FINANC/AL STATEMENT PRESENTATION
t (COIIt.�
Fund Financial Statements (cont.)
' The proprietary funds follow all pronouncements of the Governmental Accounting Standards
Board, and have elected not to follow Financial Accounting Standards Board pronouncements
, issued after November 30, 1989. 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. 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.
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. PRIOR PER/OD INFORMAT/ON
, 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
governmenYs financial statements for the year ended December 31, 2003, from which the
, summarized information was derived.
'
'
�
'
,
, Page 27
'
CITY OF ROSEMOUNT '
NOTES TO FINANCIAL STATEMENTS '
December 31, 2004
NOTE I - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (COtlt.� '
E. ASSETS, LIABILIT/ES,AND NET ASSETS OR EQU/TY
1. Deposits and lnvestments '
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. Cash with fiscal
agents are not considered to be cash equivalents, and therefore are excluded from cash and cash
equivalents in the cash flow statements.
Investment of City funds is restricted by state statutes. Available investments are limited to: '
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 municipalities, bankers �
acceptances of United States banks eligible for purchase by the Federal Reserve System, and
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. The City's investments at December 31, 2004, are stated at fair value. '
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.
2. Receivab/es
Property tax levies are set by the City Council in the fall of 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 29 and June 30. The County provides tax '
settlements to cities and other taxing districts five times per year, in January, April, June, July and
December.
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.
,
Page 28 '
'
' CITY OF ROSEMOUNT
, NOTES TO FINANCIAL STATEMENTS
December 31, 2004
� NOTE I — SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (C011t.�
E. ASSETS, L/AB/LITIES,AND NET ASSETS OR EQU/TY(cOnt.)
' 2. Receivab/es (cont.)
' 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
, fund balance reserve account which indicates that they do not constitute expendable available
financial resources and, therefore, are not available for appropriation.
3. Invenfories 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, 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 29
�
CITY OF ROSEMOUNT '
NOTES TO FINANCIAL STATEMENTS �
December 31, 2004
NOTE I - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (COt1t.� �
E. ASSETS, L/AB/L/TIES,AND NET ASSETS OR EQU/TY(COtlt.�
4. Capital Assets '
Government—Wide Statements '
In the government-wide financial statements, fixed assets are accounted for as capital assets.
Capital assets are defined by the government as assets with an initial cost of more than $500 in '
2003, and $5,000 in 2004 for general capital assets and infrastructure assets, and an estimated
useful life in excess of five years. 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. '
Prior to January 2003, infrastructure assets of governmental funds were not capitalized. Upon
implementing GASB 34, governmental units are required to account for all capital assets, �
including infrastructure, in the government-wide statements prospectively from the date of
implementation. Retroactive reporting of all major general infrastructure assets is encouraged but
not required until January 1, 2007, when GASB 34 requires the City to retroactively report all
major general infrastructure assets acquired since January 1, 1980. For the year ended December ,
31, 2004, the City has retroactively reported the road and parking lot network infrastructure
acquired by its governmental fund types. Other governmental fund infrastructure including bike
trail and sidewalk networks have not yet been retroactively reported. '
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. During the year ended December 31, 2004, $273,558 of
interest expense was incurred, of which none was capitalized: 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. '
'
,
'
'
Page 30 '
'
' CITY OF ROSEMOUNT
' NOTES TO FINANCfAL STATEMENTS
December 31, 2004
' NOTE ( — SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (cont.)
E. ASSETS, LIABIL/T/ES,AND NET ASSETS OR EQUITY(C011t.�
� 4. Capital Assets (cont.)
' Government—Wide Statements (cont.)
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 assets. 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.
6. 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 resolutions as
applicable. Amounts carried forward for vacation and comp time accruals are governed by these
, contracts and resolutions. 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, 2004 are
determined on the basis of current salary rates and include salary related payments.
'
' Page 31
'
CITY OF ROSEMOUNT '
NOTES TO FINANCIAL STATEMENTS '
December 31, 2004
NOTE I — SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (cont.) '
E. ASSETS, LIAB/LIT/ES,AND NETASSETS OR EQUITY (cont.)
7. 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 straight-line 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
balance sheet. '
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 $6,575,000. �
S. Claims and Judgments
Claims and judgments are recorded as liabilities if all the conditions of Governmental Accounting '
Standards Board pronouncements are met. Claims and judgments that would normally be
liquidated with expendable available financial resources are recorded during the year as
expenditures in the governmental funds. If they are not to be liquidated with expendable available '
financial resources, no liability is recognized in the governmental fund statements. The related
expenditure is recognized when the liability is liquidated. Claims and judgments are recorded in
the government-wide statement and proprietary funds as expenses when the related liabilities are '
incurred. There were no significant claims or judgments at year end.
'
,
'
Page 32 '
'
' CITY OF ROSEMOUNT
' NOTES TO FINANCIAL STATEMENTS
December 31, 2004
, NOTE I - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (COflt.�
E. ASSETS, L/ABILIT/ES,AND NET ASSETS OR EQUITY (COtlt.�
' 9. Equity Classifications
� Government—Wide Statements
Equity is classified as net assets and displayed in three components:
, a. Invested in capital assets, net of related debt — Consists of capital assets including
restricted capital assets, net of accumulated depreciation and reduced by the
outstanding balances of any bonds, mortgages, notes, or other borrowings that are
attributable to the acquisition, construction, or improvement of those assets.
' b. Restricted net assets — Consists of net assets 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 assets — All other net assets that do not meet the definition of
"restricted" or "invested in capital assets, net of related debt."
, 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. Fund balance is further classified as
� reserved and unreserved. Unreserved fund balance includes funds set aside by management for
specific uses, which are labeled "designated". The balance of unreserved fund balance is labeled
"undesignated", which indicates it is available for appropriation. Proprietary fund equity is
classified the same as in the government-wide statements.
' 10. Comparative Data/Reclassifications
, Comparative total data for the prior year have been presented in selected sections of the
accompanying financial statements in order to provide an understanding of the changes in the
financial position and operations of these funds. However, comparative data by fund has not been
, presented in all statements since their inclusion would make the statements unduly complex and
difficult to read. Also, certain amounts presented in the prior year data have been reclassified in
order to be consistent with the current year's presentation.
�
'
�
' Page 33
'
CITY OF ROSEMOUNT ,
NOTES TO FINANCIAL STATEMENTS '
December 31, 2004
NOTE II - RECONCILIATION OF GOVERNMENT-WIDE AND FUND FINANCIAL STATEMENTS '
A. EXPLANATION OF CERTA/N D/FFERENCES BETWEEN THE GOVERNMENTAL FUND BALANCE SHEET
AND THE STATEMENT OF NET ASSETS '
The governmental fund balance sheet includes a reconciliation between fund balance — total
governmental funds and net assets — governmental activities as reported in the government-wide �
statement of net assets. One element of that reconciliation expiains 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 $22,018,405 difference are as follows:
Long-term liabilities appiicable 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 assets.
Bonds and notes payable $ 20,395,000 ,
Capital leases payable 838,115
Compensated absences 561,887
Accrued interest 223,403
Combined Adjustment for ,
Long-Term Liabilities $ 22,018,405
'
NOTE III - STEWARDSHIP, COMPLIANCE, AND ACCOUNTABILITY
A. BUDGETARY INFORMAT/ON �
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 GAAP for
encumbrances.
Annual budgets have been adopted for the general fund and three special revenue funds, Building '
CIP, Street CIP and Equipment CIP. The capital project 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 $1,137,136. �
Page 34 '
'
� CITY OF ROSEMOUNT
� NOTES TO FINANCIAL STATEMENTS
December 31, 2004
' NOTE III - STEWARDSHIP, COMPLIANCE,AND ACCOUNTABILITY (C011t.)
B. EXCESS EXPENDITURES OVER APPROPR/ATIONS
, Actual expenditures exceeded budgeted expenditures in the following special revenue fund:
' Budget Actual Excess
Equipment CIP $ 543,600 $ 612,276 $ 68,676
� The City controls expenditures at the department level. Some individual departments experienced
expenditures which exceeded appropriations. The detail of those items can be found in the City's
year-end budget to actual report.
' C. DEFICIT BALANCES
, Generally accepted accounting principles require disclosure of individual funds that have deficit
balances at year end.
As of December 31, 2004, the following individual special revenue funds held a deficit balance:
, Amount Reason
' Great River Energy Project $ 297 allocation of negative cash balance
Port Authority TIF 196,924 interfund loan from Sewer fund
' The City will finance these deficits through external or internal sources in future years.
NOTE IV- DETAILED NOTES ON ALL FUNDS
' A. DEPOS/TS AND INVESTMENTS
' The City maintains a cash and investment pool for all funds which is recorded on the statement of
net assets with a balance of$42,702,048.
' Total cash and investments consist of the following:
Petty cash and cash on hand $ 2,400
Deposits with financial institutions 30,833,082
, Investments 11,881,132
Total Cash and Investments $ 42,716,614
1 Per statement of net assets $ 42,702,048
Per statement of net assets— fiduciary funds 14,566
� Total $ 42,716,614
, Page 35
. '
CITY OF ROSEMOUNT �
NOTES TO FINANCIAL STATEMENTS �
December 31, 2004
NOTE IV- DETAILED NOTES ON ALL FUNDS (COtlt.) ,
A. DEPOSITS AND INVESTMENTS (COtlt.�
DEPOSITS I
The City has the authority from the City Council to maintain deposits with various financial ,
institutions that are members of the Federal Reserve System. As required by Minnesota Statutes,
any of the City's deposits are to be protected by $100,000 of federal depository insurance and
pledged collateral. The market value of pledged collateral must equal 110% of the deposits not �
covered by insurance or bonds (140% in the case of mortgage notes pledged).
At December 31, 2004, the carrying amount of the City's deposits was $30,833,082 and the bank
balance was $32,465,705. The difference between the carrying amount and the bank balance ,
represents outstanding checks and deposits in transit.
Of the bank balance, all was covered by federal depository insurance, or by perfected collateral �
pledges held by the City's agent in the City's name.
Fluctuating cash flows during the year due to tax collections, receipt of state aids and/or proceeds
from borrowing may have resulted in temporary balances exceeding insured and collateralized �
amounts.
INVESTMENTS �
The City's investments are categorized to give an indication of the level of custodial credit risk
assumed by the entity at year end. Category 1 includes items that are insured or registered or '
which are evidenced by securities held by the City or its agent in the City's name. Category 2
includes uninsured and unregistered investments for which the securities are held by the
counterparty's trust department or agent in the City's name. Category 3 includes uninsured and
unregistered investments with securities held be the counterparty or its trust department or agent '
but not in the City's name.
Carrying '
Category Amount
1 2 3 Fair Value
US Government Securities $ 11,881,132 $ - $ - $ 11,881,132 '
The City had no significant type of investment during the year not included in the above schedule.
'
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Page 36 '
'
` CITY OF ROSEMOUNT
' NOTES TO FINANCIAL STATEMENTS
December 31, 2004
' NOTE IV- DETAILED NOTES ON ALL FUNDS (COtlt.�
B. RECE/VABLES
' Receivables as of year end for the government's individual major funds and nonmajor and internal
service in the aggregate, including the applicable allowances for uncollectible accounts, are as
' follows:
Debt Nonmajor Internal
� Service- Capital Governmental Service
Governmenta/Activities General General Projects Funds Funds Total
Receivables:
' Taxes $ 586,594 $ - $ - $ 7,821 $ - $ 594,415
Accounts 59,901 20,987 9,128 668,613
Loans - - - 578,597
Special assessments 88,735 3,220,802 - 171,205 - 3,480,742
' Delinquent special assessments 580 102,581 - 10,709 - 113,870
Due from other governments 8,316 115,170 8,316
� Total Receivables $ 744,126 $ 3,323,383 115,170 $ 789,319 $ 9,128 $ 4,865,956
Amounts not expected to be collected
within one year $ 57,678 $ 2,093,521 $ 115,170 $ 111,283 $ - $ 2,262,482
iNonmajor
Storm Business-
' Business-Type Water Sewer Water Type
Activities Utility Utility Utility Activities Total
Receivables:
� Accounts $ 324,440 $ 282,626 $ 149,075 $ = $ 756,141
Special assessments 84,897 254,403 148,285 487,585
Due from other governments - - - 57,217 57,217
� Total Receivables $ 409,337 $ 537,029 $ 297,360 $ 57,217 $ 1,300,943
Amounts not expected to be collected
within one year $ 55,183 $ 165,362 $ 96,385 $ - $ 316,930
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' Page 37
,
CITY OF ROSEMOUNT ,
NOTES TO FINANCIAL STATEMENTS ,
December 31, 2004
NOTE IV- DETAILED NOTES ON ALL FUNDS (C011t.� ,
B. RECEIVABLES (C011t.)
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. Property taxes levied for
the subsequent year are not earned and cannot be used 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 $ 112,042 $ - $ 112,042 ,
Delinquent special assessments 107,178 - 107,178
Special assessments not yet due 3,419,074 - 3,419,074
Donations for future projects 648,899 - 648,899
Total Deferred/Unearned Revenue 1
for Governmental Funds $ 4,287,193 $ - $ 4,287,193
C. CAPITAL ASSETS ,
Capital asset activity for the year ended December 31, 2004 was as follows:
Beginning Ending '
Balance Additions Deletions Balance
Governmental Activities '
Capital Assets Not Being Depreciated:
Land $ 3,012,525 $ 1,379,929 $ - $ 4,392,454
Construction in progress 6,185,960 766,324 4,061,033 2,891,251 '
Total Capital Assets
Not Being Depreciated $ 9,198,485 $2,146,253 $ 4,061,033 $ 7,283,705
Capital Assets Being Depreciated: �
Improvements $ 936,547 $ 46,255 $ 22,950 $ 959,852
Buildings 9,910,906 27,661 - 9,938,567
Machinery and equipment 6,738,456 199,168 174,224 6,763,400 �
Roads 20,285,830 4,984,208 92,182 25,177,856
Parking lots 331,944 - 331,944
Total Capital Assets '
Being Depreciated 38,203,683 5,257,292 289,356 43,171,619
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Page 38 '
'
� CITY OF ROSEMOUNT
' NOTES TO FINANCIAL STATEMENTS
December 31, 2004
� NOTE IV- DETAILED NOTES ON ALL FUNDS (C011t.}
C. CAP/TAL ASSETS (C011t.�
� Beginning Ending
Balance Additions Deletions Balance
' Governmental Activities (cont.)
Less: Accumulated Depreciation for:
Improvements $ 438,245 $ 45,040 $ 22,950 $ 460,335
Buildings 1,889,086 198,358 - 2,087,444
1 Machinery and equipment 3,528,284 524,383 93,634 3,959,033
Roads 5,147,569 459,232 68,535 5,538,266
Parking lots 138,084 8,062 - 146,146
' Total Accumulated Depreciation 11,141,268 1,235,075 185,119 12,191,224
Total Depreciated Capital
, Assets, Net of Depreciation $ 27,062,415 $ 4,022,217 $ 104,237 $ 30,980,395
Depreciation expense was charged to functions as follows:
' Governmental Activities
General government $ 163,262
Public safety 212,525
' Public works, which includes the depreciation of roads and parking lots 683,450
Leisure activities 175,838
' Total Governmental Activities Depreciation Expense $ 1,235,075
Beginning Ending
� Balance Additions Deletions Balance
Business-Type Activities
Capital Assets Not Being Depreciated:
Land $ 962,205 $ 647,032 $ - $ 1,609,237
' Construction in progress 7,839,063 407,983 - 8,247,046
Total Capital Assets
Not Being Depreciated $ 8,801,268 $ 1,055,015 $ - $ 9,856,283
' Other Capital Assets
Buildings $ 6,076,878 $ 67,849 $ - $ 6,144,727
' Machinery and equipment 1,595,508 65,598 = 1,661,116
Mains and lines 83,776,763 6,707,280 90,484,043
Total Capital Assets
' Being Depreciated 91,449,159 6,840,727 - 98,289,886
'
, Page 39
,
CITY OF ROSEMOUNT '
NOTES TO FINANCIAL STATEMENTS '
December 31, 2004
NOTE IV- DETAILED NOTES ON ALL FUNDS (COCIt.� '
C. CAPITAL ASSETS (COtlt.�
Beginning Ending �
Balance Additions Deletions Balance
Business-Type Activities (cont.) ,
Less: Accumulated depreciation for:
Buiidings $ 1,032,818 $ 123,238 $ - $ 1,156,056
Machinery and equipment 952,352 109,759 - 1,062,111
Mains and lines 28,345,567 1,340,120 841 29,684,846 '
Total Accumulated Depreciation 30,330,737 1,573,117 841 31,903,013
Total Depreciated Capital '
Assets, Net of Depreciation $ 61,118,422 $ 5,267,610 $ 841 $ 66,385,191
Depreciation expense was charged to functions as foilows: '
Business-Type Activities
Water $ 487,874
Sewer 682,981 �
Storm water 347,928
Arena 54,334
Total Business-Type Activities ,
Depreciation Expense $ 1,573,117
D. INTERFUND RECEIVABLES/PAYABLES AND TRANSFERS '
The following is a schedule of interfund advances as of December 31, 2004:
Amount Not �
Due Within
Receivable Fund Payable Fund Amount One Year
Sewer Port Authority TIF $ 281,491 $ 281,491 '
Sewer Building CIP 237,568 225,434
Sewer W ater 98,987 93,941
Subtotal — Fund Financial Statements 618,046 600,866 '
Less: Fund eliminations (98,986) (93,941)
Total — Government-Wide Statement of Net Assets $ 519,059 $ 506,925 �
'
'
Page 40 '
�
� CITY OF ROSEMOUNT
� NOTES TO FINANCIAL STATEMENTS
December 31, 2004
' NOTE IV- DETAILED NOTES ON ALL FUNDS (COflt.�
D. INTERFUND RECEIVABLES/PAYABLES AND TRANSFERS (COCIt.�
� The principal purpose of these interfund loans was to finance the public works building expansion
in 1999, and to purchase and renovate the Downtown-Brockway Tax Increment Financing District
� in 2004.
For the statement of net assets, 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 two special revenue funds. 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:
Principal Interest Totals
� 2005 $ 17,178 $ 16,834 $ 34,012
2006 299,528 44,968 344,496
2007 18,939 15,073 34,012
� 2008 19,886 14,126 34,012
2009 20,880 13,132 34,012
2010 - 2014 121,146 48,914 170,060
, 2015 - 2019 120,489 15,443 135,931
Total $ 618,046 $ 168,490 $ 786,535
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, Page 41
�
CITY OF ROSEMOUNT �
NOTES TO FINANCIAL STATEMENTS �
December 31, 2004
NOTE IV- DETAILED NOTES ON ALL FUNDS (C011t.) '
D. INTERFUND RECEIVABLES/PAYABLES AND TRANSFERS(COtlt.)
The following is a schedule of interfund transfers: '
Fund Transferred To Fund Transferred From Amount Principal Purpose ,
General Nonmajor enterprise $ 3,500 Building & grounds maintenance
Nonmajor special �
revenue 8,177 To close special revenue fund
Debt Service Fund Capital project 433,839 To close construction fund '
Nonmajor special
revenue 7,281 Delinquent TIF used to pay debt
Nonmajor special �
revenue 172,079 TIF distribution used to pay debt
Water 170,000 Water portion of debt payment
Nonmajor enterprise 11,000 Arena share of lease payment
Storm water 138,000 Storm portion of debt payment '
Capital Project Nonmajor special Street CIP special assessment
revenue 247,200 portion of project '
Nonmajor special
revenue 518,857 Street CIP share of project
Sewer 162,263 Sewer share of project '
Water 225,495 Water share of project
Storm water 776,083 Storm share of project
Storm water 57,986 To close construction project
Non-major '
governmental funds Capital project 93,509 To close construction funds
General 590,000 To keep fund balance at 55% ,
of 2005 operating budget
Enterprise Fund
Storm water Water 64,000 Water share of debt payment ,
3,679,269
Less: Fund eliminations 2,134,942 �
Contributed plant reclassified to a transfer in
the government-wide statements. 6,631,615
Total — Government-Wide Statement '
of Net Assets $ (5,087,288)
'
Page 42 '
�
ICITY OF ROSEMOUNT
' NOTES TO FINANCIAL STATEMENTS
December 31, 2004
� �IOTE IV— DETAILED NOTES ON ALL FUNDS (COtlt.�
D. INTERFUND RECEIVABLES/PAYABLES AND TRANSFERS(C011t.�
� 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 receip�s 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.
� E. LoN�-TERM OBL/GATIONS
Long-term obligations activity for the year ended December 31, 2004 was as follows:
� Amounts
Beginning Ending Due Within
Balance Increases Decreases Balance One Year
� GOVERNMENTAL ACTIVITIES
Bonds and Notes Payable:
General obligation debt $ 23,155,000 $ - $ 2,760,000 $ 20,395,000 $ 3,035,000
� Other Liabilities
Vested compensated absences 496,782 303,560 238,455 561,887 269,706
, Capitalleases 1,090,044 - 251,929 838,115 187,970
Total Other Liabilities 1,586,826 303,560 490,384 1,400,002 457,676
Total Governmental Activities
' Long-Term Liabilities $ 24,741,826 $ 303,560 $ 3,250,384 $ 21,795,002 $ 3,492,676
BUSINESS-TYPE ACTIVITIES
� Bonds and Notes Payable:
General obligation debt $ 7,075,000 $ $ 600,000 $ 6,475,000 $ 735,000
Subtract Deferred Amounts For:
Discounts 52,667 - 8,449 44,218 -
� Sub-total 7,022,333 - 591,551 6,430,782 735,000
Other Liabilities:
� Vested compensated absences 101,073 50,826 48,515 103,384 49,624
Total Business-Type Activities
�ong-Term Liabilities $ 7,123,406 $ 50,826 $ 640,066 $ 6,534,166 $ 784,624
�
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� Page 43
,
CITY OF ROSEMOUNT ,
NOTES TO FINANCIAL STATEMENTS '
December 31, 2004
NOTE IV- DETAILED NOTES ON ALL FUNDS (C011t.� �
E. Lon►GTERM OBUGAT/ONS(C011t.�
Genera/ Obligation Debt ,
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.
Date of Final Interest Original Balance '
Issue Maturity Rates Indebtedness 12-31-04
Governmental Activities '
General Obligation Debt
Fire Station Bonds, Series 1996 A 1996 1997-2016 4.1% to 6.0% $ 1,780,000 $ 1,240,000
Refunding Bonds, Series 2001 E 2001 2004-2013 3.1% to 4.6°/a 725,000 665,000 �
Improvement Bonds, Series 1998 A 1998 2000-2009 3.9% to 4.7% 2,010,000 950,000
Improvement Bonds, Series 1999 A 1999 2002-2011 4.3% to 4.8% 3,715,000 1,990,000
Improvement Bonds, Series 1999 B 1999 2002-2011 4.2% to 5.1% 4,395,000 2,595,000 �
Improvement Bonds, Series 2001 A 2001 2003-2012 3.0% to 4.4% 1,325,000 1,095,000
Improvement Bonds, Series 2002 A 2002 2004-2013 2.3% to 4.0% 3,395,000 2,765,000
Improvement Bonds, Series 2003 A 2003 2005-2014 2.0% to 3.3% 1,945,000 1,945,000 '
Municipal Bldg Refunding, Series 1998A 1998 2004-2018 4.3% to 5.2% 2,405,000 2,280,000
Port Authority, Series 2000B 2000 2002-2011 4.5% to 5.0% 1,750,000 1,335,000
Public Facilities Bonds, Series 2001C 2001 2003-2022 4.0% to 5.0% 2,045,000 1,950,000
Port Authority, Series 2002C 2002 2004-2013 2.3°/a to 4.0% 1,795,000 1,585,000 '
Total Governmental Activities-General Obligation Debt $ 20,395,000
Date of Final Interest Original Balance '
Issue Maturity Rates Indebtedness 12-31-04
Business-Type Activities
General Obligation Debt �
Water Rev. Refunding Bonds, Series 1993C 1993 1998-2005 3.8% to 5.0% $ 945,000 $ 140,000
Storm Water Revenue Bonds, Series 1996B 1996 1998-2012 4.3% to 5.8% 1,035,000 640,000 '
Water Revenue Bonds, Series 1996C 1996 1998-2005 4.3% to 5.1% 500,000 70,000
Storm Water Revenue Bonds, Series 1999C 1999 2002-2015 4.7% to 5.4% 855,000 690,000
Water Revenue Bonds, Series 2000A 2000 2002-2016 4.4% to 5.4% 1,160,000 1,015,000
Storm Water Revenue Bonds, Series 20016 2001 2003-2017 4.0% to 4.9% 1,140,000 1,040,000 �
Storm Water Rev Refunding Bonds, Series
2001 D 2001 2003-2008 2.5% to 4.0% 805,000 555,000
Storm Water Revenue Bonds, Series 2002B 2002 2004-2018 3.0% to 4.6% 1,195,000 1,155,000 '
Storm Water Bonds, Series 20036 2003 2005-2014 1.2% to 3.4% 1,170,000 1,170,000
Total Business-Type Activities General Obligation Debt $ 6,475,000
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Page 44 �
i
' CITY OF ROSEMOUNT
� NOTES TO FINANCIAL STATEMENTS
December 31, 2004
� NOTE IV- DETAILED NOTES ON ALL FUNDS (COtlt.�
E, LONG-TERM OBL/GATIONS (C011t.�
' Genera/ Obligation Debt(cont.)
' Debt service requirements to maturity are as follows:
Governmental Activities Business-Type Activities
General Obligation Debt General Obligation Debt
� Years Principal Interest Principal Interest
2005 $ 3,035,000 $ 815,276 $ 735,000 $ 261,826
1 2006 2,840,000 705,239 565,000 238,180
2007 2,385,000 606,290 475,000 191,541
2008 2,410,000 534,216 605,000 197,018
� 2009 1,815,000 416,021 465,000 173,344
2010 — 2014 5,880,000 1,093,283 2,495,000 557,764
2015 — 2019 1,575,000 294,479 1,135,000 94,469
2020 —2022 455,000 46,250 - -
� Totals $ 20,395,000 $ 4,511,144 $ 6,475,000 $ 1,714,141
, 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.
, Defeasance of Debt
In 2003, the City defeased certain outstanding bonds by placing surplus funds collected on special
' assessments in an irrevocable trust to provide for all future debt service payments on the old
bonds. Accordingly, the trust account assets and the liability for the defeased bonds are not
included in the City's financial statements. At December 31, 2004, $3,135,000 of bonds
outstanding were considered defeased. The bonds are callable on February 1 of 2005 and 2006.
'
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� Page 45
i
CITY OF ROSEMOUNT ,
NOTES TO FINANCIAL STATEMENTS �
December 31, 2004
NOTE IV- DETAILED NOTES ON ALL FUNDS (C011t.� �
F. LEASE D/SCLOSURES
Lessee— Capital Leases '
The City has entered into various lease-purchase agreements to facilitate the acquisition of ,
certain capital assets. The gross amount of capital assets under capital leases is $1,797,702, and
is included in the governmental activities. The future minimum lease obligations and the net
present value on these minimum lease payments as of December 31, 2004, are as follows: ,
Governmental
Activities
2005 $ 230,961 ,
2006 180,243
2007 115,347 �
2008 115,347
2009 115,347
2010 — 2014 230,693 ,
Sub-Total 987,938
Less: Amount representing interest (149,823)
Present Value of Minimum Lease Payments $ 838,115 ,
G. NET ASSETS/FUND BALANCES �
Net assets reported on the government-wide statement of net assets at December 31, 2004
includes the following: �
Governmental Activities
Invested in capital assets, net of related debt '
Construction in progress $ 2,891,251
Land 4,392,454
Other capital assets, net of accumulated depreciation 30,980,395 �
Less: related long-term debt outstanding (excluding unspent
capital related debt proceeds) (21,233,115)
Total Invested in Capital Assets 17,030,985 �
Unrestricted 26,487,766
Total Governmental Activities Net Assets $ 43,518,751 '
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Page 46 �
'
� CITY OF ROSEMOUNT
� NOTES TO FINANCIAL STATEMENTS
December 31, 2004
� NOTE IV- DETAILED NOTES ON ALL FUNDS (COC1t.�
G. NET ASSETS/FUND BALANCES (C011t.�
� Governmental Activities (cont.)
� Governmental fund balances reported on the fund financial statements at December 31, 2004
include the foilowing:
Reserved
1 Major Funds
General Fund
Prepaid items $ 30,048
' Encumbrances 503,524
Total $ 533,572
� Debt Service Fund
Reserved for debt service $ 9,508,673
Total Major Funds Reserved $ 10,042,245
� Non-Major Funds
Prepaid Items $ 335
� Building CIP Fund
Reserved for encumbrances 1,515,496
Street CIP Fund
� Reserved for encumbrances 48,000
Equipment CIP Fund
Reserved for encumbrances 66,663
� Total Non-Major Funds Reserved $ 1,630,494
Unreserved, undesignated (deficit)
� Major Funds
General fund $ 13,999
Non-Major Funds
, Special Revenue Funds
Building CIP fund $ (77,416)
� Great River Energy project fund (297)
Port Authority TIF Fund (196,924)
Port Authority General Fund 181,668
� Total $ (92,969)
�
' Page 47
'
CITY OF ROSEMOUNT �
NOTES TO FINANCIAL STATEMENTS �
December 31, 2004
NOTE IV— DETAILED NOTES ON ALL FUNDS (COflt.) �
G. NETASSETS/FUNDBALANCES (Cont.)
Governmental Activities (cont.) t
Unreserved, designated ,
Major Funds
General fund
Designated for working capital $ 5,478,748
Designated for compensated absences 561,887 �
Deduction to availabie funds (1,109,458)
Total 4,931,177
General Capital Projects Fund '
Designated for capital projects 2,712,870
Total Major Funds — Unreserved, designated $ 7,644,047 '
Non-Major Funds
Special Revenue Funds
Street CIP fund $ 1,304,753 �
Equipment fund 486,299
Park improvements fund 1,239,920
Tree disease grant program fund 148 �
Crime reduction project fund 2,360
Fire safety education fund 8,702
GIS fund 74,892 '
Total Non-Major Funds — Unreserved, designated $ 3,117,074
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Page 48 '
'
ICITY OF ROSEMOUNT
' NOTES TO FINANCIAL STATEMENTS
December 31, 2004
' NOTE V-OTHER INFORMATION
A. PENS/ON PLANS
' 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 Public
Employees Retirement Fund (PERF) 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 Statues,
' Chapters 353 and 356.
PERF members belong to either the Coordinated Plan or the Basic Plan.
, Coordinated Plan members are covered by Social Security and Basic Plan
members are not. All new members must participate in the Coordinated Plan. All
police officers, 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 PERF's Coordinated and Basic
Plan members. The retiring member receives the higher of a step-rate benefit
' accrual formula (Method 1) or a level accrual formula (Method 2). Under Method 1,
the annuity accrual rate for a Basic Plan member 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 PERF 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
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CITY OF ROSEMOUNT '
NOTES TO FINANCIAL STATEMENTS '
December 31, 2004
NOTE V-OTHER INFORMATION (COflt.� '
A. PENS/ON PLANS (COflt.�
1. Public Employees Retirement Association (cont.) '
a. Pian 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 PERF and PEPFF. That report may be '
obtained by writing to PERA, 514 St. Peter Street #200, St. Paul, Minnesota, 55102
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. PERF Basic Plan members and Coordinated Plan
members are required to contribute 9.10% and 5.10%, respectively, of their annual �
covered salary. PEPFF members are required to contribute 6.20% of their annual
covered salary. The City of Rosemount is required to contribute the following
percentages of annual covered payroll: 11.78% for Basic Plan PERF members,
5.53% for Coordinated Plan PERF members, and 9.30% for PEPFF members. The '
City's contributions to the Public Employees Retirement Fund for the years ending
Decembe� 31, 2004, 2003, and 2002 were $167,711, $151,312, and $138,316,
respectively. The City's contributions to the Public Employees Police & Fire Fund ,
for the years ending December 31, 2004, 2003, and 2002 were $115,944,
$106,388, and $95,598, respectively. The City's contributions were equal to the
contractually required contributions for each year as set by state statute. '
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' CITY OF ROSEMOUNT
NOTES TO FINANCIAL STATEMENTS
' December 31, 2004
, NOTE V-OTHER INFORMATION (C011t.�
A. PENSION PLANS (C011t.�
� 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 not 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 $4,800 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 40 percent after 5 years of
' service, increasing 4 percent for each year of service after 5 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 actuarial value of assets was determined using fair value.
' Page 51
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CITY OF ROSEMOUNT '
NOTES TO FINANCIAL STATEMENTS '
December 31, 2004
NOTE V—OTHER INFORMATION (cont.) '
A. PENSION PLANS(COflt.�
2. Rosemount Fire Department Relief Association-Defined Benefit Pension Plan �
(cont.)
c. Annual Pension Cost and Net Pension Obligations (cont.) '
The following actuariai assumptions and methods were used: '
Actuarial cost method N/A "
Inflation rate N/A *
Investment return N/A '` '
Projected salary increases N/A ''
Postretirement benefit increases N/A *
Amortization method N/A * ,
Amortization period N/A ''
* Items are not available because no actuarial valuation was required by Minnesota
statutes. '
The annual pension cost for the Rosemount Fire Department Relief Association
Pension Plan for the year ended December 31, 2004 were as follows: ,
Amount
State of Minnesota contribution $ 106,192 '
City of Rosemount contribution 135,000
$ 241,192 '
Three Year Trend Information
Fiscal Year Ending Annual Pension Percentage of APC Net Pension ,
Cost Contribution Obligation
(APC) '
2004 $ 241,192 100.0 % $ 0
2003 214,949 100.0 0 '
2002 198,378 100.0 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 2004 was based on the same formula, '
funding method and other factors used to determine pension contributions
requirements in previous years.
Page 52 '
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' CITY OF ROSEMOUNT
' NOTES TO FINANCIAL STATEMENTS
December 31, 2004
' NOTE V—OTHER INFORMATION (C011t.)
A. PENS/ON PLANS (cont.)
' 2. Rosemount Fire Department Relief Association-Defined Benefit Pension Plan
(cont.)
' 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 for the year ended December 31,
2004. This information is useful in assessing the pension plan's accumulation of
sufficient assets to pay pension benefits as they become due.
' The following historical trend information was obtained from the Association's
financial report for the year ended December 31, 2004.
Assets as a Overfunded
' Aggregate Percentage (Underfunded)
Valuation Valuation Accrued of Accrued Accrued
Date Assets Liabilities Liabilities Liabilities
' 12-31-04 1,690,170 1,718,437 99 (28,267)
12-31-03 1,495,875 1,440,686 104 55,189
12-31-02 1,166,341 1,302,563 90 (136,222)
' 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.
' e. Related Party Transactions
, As of December 31, 2004 and for the year then ended, the Association held no
securities issued by City or other related parties.
B. R/SK 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. Settlements
have not exceeded coverages 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, 2004, 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 '
December 31, 2004
NOTE V-OTHER INFORMATION (COCIt.� '
C, COMM/TMENTS 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.
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REQUIRED SUPPLEMENTARY INFORMAT/ON
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CITY OF ROSEMOUNT '
REQUIRED SUPPLEMENTARY INFORMATION '
GENERALFUND
SCHEDULE OF REVENUES COMPARED TO BUDGET(BUDGETARY BASIS)- BUDGET AND ACTUAL '
For the Year Ended December 31, 2004
Budgeted Amounts Variance with '
REVENUES Original Final Actual Final Budget-
TAXES ,
General property tax $ 3,994,960 $ 4,085,960 $ 4,040,105 $ (45,855)
Fiscal disparities 844,509 844,509 844,509 -
Other 261,000 170,000 252,145 82,145
Total Taxes 5,100,469 5,100,469 5,136,759 36,290 '
INTERGOVERNMENTAL REVENUES
State aid-police 95,000 95,000 112,834 17,834 '
State aid-general government 12,889 12,889 16,952 4,063
State aid-highway 29,000 29,000 28,300 (700)
Other 59,000 59,000 60,746 1,746
Total Intergovernmental Revenues 195,889 195,889 218,832 22,943 '
PUBLIC CHARGES FOR SERVICES
General government 1,031,000 1,031,000 1,086,302 55,302 '
Public safety 45,200 45,200 38,771 (6,429)
Highways and streets 5,000 5,000 89,178 84,178
Parks and recreation 224,100 104,600 251,368 146,768
SAC 4,000 4,000 7,962 3,962 '
Total Charges for Services 1,309,300 1,189,800 1,473,581 283,781
LICENSES AND PERMITS '
Business 21,000 21,000 38,767 17,767
Non-business 597,400 597,400 1,256,397 658,997
Total Licenses and Permits 618,400 618,400 1,295,164 676,764
FINES AND FORFEITURES '
County 90,000 90,000 96,902 6,902
SPECIAL ASSESSMENTS - - 41,183 41,183 ,
INVESTMENT INCOME AND MISCELLANEOUS
Investment income 82,442 82,442 148,303 65,861 ,
Net decrease in the fair value of investments - - (6,326) (6,326)
Miscellaneous general revenues 5,000 5,000 22,127 17,127
Donations - 44,633 44,633 - '
Recreational fees - 123,500 - . (123,500)
Rents 4,400 4,400 5,383 983
Total Investment income and miscellaneous 91,842 259,975 214,120 (45,855) '
Total Revenues
OTHER FINANCING SOURCES '
Transfers in 3,500 3,500 11,677 8,177
Total Revenues and Other Financing Sources $ 7,409,400 $ 7,458,033 $ 8,488,218 $ 1,030,185 ,
See accompanying notes to required supplementary information.
Page 55 '
, CITY OF ROSEMOUNT
' REQUIRED SUPPLEMENTARY INFORMATION
GENERALFUND
, SCHEDULE OF EXPENDITURES AND OTHER USES(BUDGETARY BASIS)-BUDGET AND ACTUAL
For the Year Ended December 31,2004
' Budgeted Amounts Variance with
CURRENT EXPENDITURES Original Final Actual Final Budget-
, GENERAL GOVERNMENT
Mayor and council $ 91,300 $ 156,500 $ 365,634 $ (209,134)
Executive 362,300 367,300 358,618 8,682
Elections 23,200 23,200 36,431 (13,231)
' Finance 258,200 258,200 242,352 15,848
Community development 800,200 800,200 743,936 56,264
General government 350,400 350,400 358,155 (7,755)
, TOTAL GENERAL GOVERNMENT 1,885,600 1,955,800 2,105,126 (149,326)
PUBLIC SAFETY
, Police department 2,007,000 2,011,574 1,976,486 35,088
Fire department 265,500 265,500 256,746 8,754
� TOTAL PUBLIC SAFETY 2,272,500 2,277,074 2,233,232 43,842
PUBLIC WORKS
Government building maintenance 335,800 335,800 322,574 13,226
' Fleet maintenance 396,500 396,500 369,245 27,255
Street maintenance 1,112,900 a-,112,900 1,067,818 45,082
Park maintenance 457,300 457,300 409,966 47,334
' TOTAL PUBLIC WORKS 2,302,500 2,302,500 2,169,603 132,897
' PARKS AND RECREATION 948,800 983,858 980,841 3,017
OTHER FINANCING USES 590,000 (590,000)
' TOTAL EXPENDITURES $ 7,409,400 $ 7,519,232 8,078,802 $ (559,570)
Beginning of year budget basis encumbrances 147,339
, End of year budget basis encumbrances (503,524)
' GAAP basis expenditures and other financing uses $ 7,722,617
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Page 56
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CITY OF ROSEMOUNT ,
NOTES TO REQUIRED SUPPLEMENTARY INFORMATION '
December 31, 2004
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 GAAP for encumbrances.
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SUPPLEMENTARY INFORMATION
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CITY OF ROSEMOUNT '
COMBINING BALANCE SHEET-NONMAJOR GOVERNMENTAL FUNDS
December 31,2004 ,
Special Revenue Funds
�
Mississippi
Building Street Equipment River Park
CIP CIP CIP Grant Improvements ,
ASSETS
Cash and investments $ 1,689,748 $ 1,330,561 $ 553,904 $ - $ 1,281,009
Receivables:
Taxes - - - - - '
Accounts - 20,987 - - -
Loans - - - - -
Special assessments - 171,205 - - -
Delinquent special assessments - 10,709 - - - �
Prepaid items - - - - -
Total assets $ 1,689,748 $ 1,533,462 $ 553,904 $ - $ 1,281,009
LIABILITIES 1
Accounts payable $ 14,100 $ - $ 942 $ - $ 41,089
Due to other funds - - - - - '
Deferred revenue - 180,709 - - -
Advances from other funds 237,568 - - - -
Totalliabilities 251,668 180,709 942 - 41,089
FUND BALANCES �
Reserved for encumbrances 1,515,496 48,000 66,663 - -
Reserved for prepaid items - - - - -
Unreserved '
Designated for subsequent years'expenditures - 1,304,753 486,299 - 1,239,920
Undesignated(Deficit) (77,416) - - - -
Total fund balances 1,438,080 1,352,753 552,962 - 1,239,920
Total liabilities and fund balances $ 1,689,748 $ 1,533,462 $ 553,904 $ - $ 1,281,009 '
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Special Revenue Funds
' Total
Tree Disease Great River Crime Fire Nonmajor
Grant Energy Reduction Safety Port Authority Port Authority Governmental
� Program Project Project Education GIS TIF General Funds
$ 148 $ - $ 2,360 $ 8,702 $ 74,892 $ 97,730 $ 187,736 $ 5,226,790
, - - _ - - 7,281 - 7,281
20,987
- - - - 578,597 578,597
- - - - - - - 171,205
� - - - - - - - 10,709
335 335
$ 148 $ - $ 2,360 $ 8,702 $ 74,892 $ 105,011 $ 766,668 $ 6,015,904
' $ - $ - $ - $ - $ - $ 20,444 $ 6,068 $ 82 643
- 297 - - - - - 297
� _ _ _ _ _ - 578,597 759,306
281,491 519,059
- 297 - - - 301,935 584,665 1,361,305
� - - - - - - - 1,630,159
- - - - - - 335 335
, 148 - 2,360 8,702 74,892 - - 3,117,074
(297) (196,924) 181,668 (92,969)
148 (297) 2,360 8,702 74,892 (196,924) 182,003 4,654,599
' $ 148 $ - $ 2,360 $ 8,702 $ 74,892 $ 105,011 $ 766,668 $ 6,015,904
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CITY OF ROSEMOUNT �
COMBINING STATEMENT OF REVENUES, EXPENDITURES AND
CHANGES IN FUND BALANCES- NONMAJOR GOVERNMENTAL FUNDS
For the Year Ended December 31,2004 '
Special Revenue Funds
Mississippi '
Building Street Equipment River Park
CIP CIP CIP Grant Improvements ,
REVENUES
Taxes $ 39,000 $ 750,000 $ 541,100 $ - $ -
Intergovernmental - - - 1,209 3,000 '
Public charges for services - 173,116 - - 1,114,200
Special assessments - 140,203 - - -
Investment income and miscellaneous 10,609 10,103 5,914 19 5,687 '
Total Revenues 49,609 1,073,422 547,014 1,228 1,122,887
EXPENDITURES ,
Current:
General government 2,500 2,500 2,500 - -
Public safety - - - - -
Public works - 3,979 - - - ,
Capital outlay 23,605 - 301,633 - 107,071
Debt Service:
Principal retirement - - 251,929 - - �
Interest and fiscal charges 12,456 - 56,214 - -
Total Expenditures 38,561 6,479 612,276 - 107,071
Excess(deficiency)of revenues over '
(under)expenditures 11,048 1,066,943 (65,262) 1,228 1,015,816
OTHER FINANCING SOURCES(USES) '
Sale of capital assets - - 6,350 - -
Transfers in: '
General fund 590,000 82,509 - -
Arena fund - - 11,000 - -
Transfers out:
General fund - - - (8,177) - '
Capital projects fund - (766,057) - - -
Total Other Financing Sources(Uses) 590,000 (683,548) 17,350 (8,177) -
Net change in fund balance 601,048 383,395 (47,912) (6,949) 1,015,816 �
FUND BALANCES (DEFICIT)-Beginning
of Year 837,032 969,358 600,874 6,949 224,104 '
FUND BALANCES(DEFICIT)-
END OF YEAR $ 1,438,080 $ 1,352,753 $ 552,962 $ -0- $ 1,239,920 ,
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Special Revenue Funds
� Tree Disease Great River Nonmajor
Grant Energy Crime Fire Port Authority Port Authority Governmental
' Program Project Reduction Safety GIS TIF General Funds
$ - $ - $ - $ - $ - $ 206,553 $ - $ 1,536,653
� = _ _ = - - 50,000 54,209
37,300 1,324,616
- - - - - - - 140,203
� 1 = 14 516 422 227 51,910 85,422
1 14 516 37,722 206,780 101,910 3,141,103
' - - - - - - 10,298 17,798
- - 854 281 - - - 1,135
� = = = = 10,331 15,659 542,872 572,841
208,685 7,877 648,871
� _ - - - - - - 251,929
68,670
- - 854 281 10,331 224,344 561,047 1,561,244
�
1 - (840) 235 27,391 (17,564) (459,137) 1,579,859
' _ _ - - - - -
6,350
� _ _ _ _ _ _ _ 672,509
11,000
' _ _ _ _ _ (179,360) = (187,537)
(766,057)
- - - - - (179,360) - (263,735)
, 1 - (840) 235 27,391 (196,924) (459,137) 1,316,124
' 147 (297) 3,200 8,467 47,501 - 641,140 3,338,475
$ 148 $ 297 $ 2,360 $ 8,702 $ 74,892 $ (196,924) $ 182,003 $ 4,654,599
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CITY OF ROSEMOUNT �
BUILDING CIP SPECIAL REVENUE FUND '
SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES
IN FUND BALANCE - BUDGET AND ACTUAL
For the Year Ended December 31, 2004 '
Original and
Final Budgeted Variance with '
REVENUES Amounts Actual Final Budget-
Taxes $ 39,000 $ 39,000 $ -
Investment income 3,000 10,609 7,609 �
Total Revenues 42,000 49,609 7,609
EXPENDITURES '
Current:
General government 2,500 2,500 -
Capital outlay 26,550 23,605 2,945 '
Debt service:
Interest on lease 12,450 12,456 (6)
Total Expenditures 41,500 38,561 2,939 �
Excess of revenues over expenditures 500 11,048 10,548 �
OTHER FINANCING SOURCES
Transfers in - 590,000 590,000 �
Net Change in Fund Balance 500 601,048 600,548
FUND BALANCE - Beginning - 837,032 (837,032) '
FUND BALANCE - ENDING $ 500 $ 1,438,080 $ (236,484 �
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' CITY OF ROSEMOUNT
, STREET CIP SPECIAL REVENUE FUND
SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES
IN FUND BALANCE- BUDGET AND ACTUAL
� For the Year Ended December 31, 2004
Original and
' Final Budgeted Variance with
REVENUES Amounts Actual Finai Budget-
Taxes $ 750,000 $ 750,000 $ -
, Charges for services 130,000 173,116 43,116
Special assessments 140,203 140,203
Investment�ncome 20,200 10,103 (10,097)
' Total Revenues 900,200 1,073,422 173,222
EXPENDITURES
, Current:
General government 2,500 2,500
Pubiic works - 3,979 (3,979)
� Capital outlay 880,000 - 880,000
Total Expenditures 882,500 6,479 876,021
� Excess of revenues over expenditures 17,700 1,066,943 1,049,243
, OTHER FINANCING SOURCES (USES) _
Transfers in 82,509 82,509
Transfers out - (766,057) (766,057)
� Total Other Financing Sources (Uses) - (683,548) (683,548)
Net Change in Fund Balance 17,700 383,395 365,695
' FUND BALANCE - Beginning - 969,358 (969,358)
' FUND BALANCE- ENDING $ 17,700 $ 1,352,753 $ (603,663
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CITY OF ROSEMOUNT '
EQUIPMENT CIP SPECIAL REVENUE FUND �
SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES
IN FUND BALANCE- BUDGET AND ACTUAL
For the Year Ended December 31, 2004 �
Original and
Final Budgeted Variance with '
REVENUES Amounts Actual Final Budget-
Taxes $ 541,100 $ 541,100 $ -
Investment income 4,900 5,914 1,014 '
Total Revenues 546,000 547,014 1.014
EXPENDITURES �
Current:
General government 2,500 2,500 -
Capital outlay 310,000 301,633 8,367 ,
Debt service:
Principal retirement 177,700 251,929 (74,229)
Interest and fiscal charges 53,400 56,214 (2,814) �
Total Expenditures 543,600 612,276 (68,676)
Excess (deficiency)of revenues over(under) �
expenditures 2,400 (65,262) (67,662)
OTHER FINANCING SOURCES �
Sale of capital assets - 6,350 6,350
Transfers in - 11,000 11,000 �
Total Other Financing Sources - 17,350 17,350
Net Change in Fund Balance 2,400 (47,912) (50,312) ,
FUND BALANCE - Beginning - 600,874 (600,874)
FUND BALANCE- ENDING $ 2,400 $ 552,962 $ (651,186) �
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� CITY OF ROSEMOUNT
� SCHEDULE OF CHANGES IN ASSETS AND LIABILITIES -
M.A.A.G.AGENCY FUND
For the Year Ended December 31, 2004
' Balance Balance
12/31/2003 Receipts Disbursements 12/31/2004
� ASSETS
Cash and investments $ - $ 20,289 $ 5,723 $ 14,566
� LIABILITIES
Due to M.A.A.G. $ - $ 20,289 $ 5,723 $ 14,566
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CITY OF ROSEMOUNT `
SCHEDULE OF CAPITAL ASSETS USED IN THE OPERATION OF GOVERNMENTAL FUNDS- '
SCHEDULE- BY SOURCE'
December 31, 2004
'
GOVERNMENTAL FUNDS CAPITAL ASSETS:
Land $ 4,392,454
Land improvements 959,852 �
Buildings 9,938,567
Machinery and equipment 4,052,917
Licensed vehicles 2,710,483 �
Infrastructure 25,509,800
Construction in progress 2,891,251
TOTAL GOVERNIVIENTAL FUNDS CAPITAL ASSETS $ 50,455,324 ,
INVESTMENTS IN GOVERNMENTAL FUNDS CAPITAL ASSETS BY SOURCE: '
General fund and capital projects fund sources $ 50,455,324
'Thi '
s schedule presents only the capital asset balances related to governmental funds.
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ITABLE 1
CITY OF ROSEMOUNT
, GENERAL FUND EXPENDITURES AND OTHER FINANCING USES BY FUNCTION
YEARS 1995 THROUGH 2O04
(UNAUDITED)
'
General Public Public Park and
' Year Government Safety Works Recreation Transfers Total
1995 $ 1,074,859 $ 1,211,425 $ 1,236,215 $ 628,270 $ 208,399 $ 4,359,168
' 1996 1,041,383 1,292,439 1,495,630 549,173 117,950 4,496,575
1997 1,000,732 1,395,627 1,406,359 572,489 130,400 4,505,607
1998 1,227,524 1,442,652 1,450,156 601,450 - 4,721,782
' 1999 1,132,331 1,496,445 1,638,278 628,145 - 4,895,199
2000 1,142,410 1,579,038 1,887,570 691,126 192,000 5,492,144
2001 1,363,241 1,710,016 1,696,322 751,673 897,834 6,419,086
' 2002 1,526,727 1,884,975 1,801,461 785,226 - 5,998,389
2003 1,597,819 2,085,001 1,987,960 907,100 1,422,836 8,000,716
2004 1,880,941 2,233,232 2,037,603 980,841 590,000 7,722,617
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TABLE 2
CITY OF ROSEMOUNT
GENERAL FUND REVENUES AND OTHER FINANCING SOURCES BY SOURCE
YEARS 1995 THROUGH 2O04
(UNAUDITED)
Licenses Charges Fines
and Inter- for and Special Recreational
Year Taxes Permits Governmental Services Forfeitures Assessments Fees Other Transfers Total
1995 $2,305,352 $ 262,946 $ 1,097,460 $ 401,211 $ 139,680 $ 48,046 $ 177,076 $ 101,539 $ 3,500 $ 4,536,810
1996 2,476,676 239,129 1,119,492 314,049 111,929 14,112 173,794 137,118 3,500 4,589,799
1997 2,468,582 259,012 1,240,069 480,657 113,972 3,968 196,002 95,719 3,500 4,861,481
1998 2,693,105 363,238 1,274,373 351,650 72,084 165 201,352 156,051 3,500 5,115,518
1999 2,626,864 623,463 1,318,132 486,379 91,441 - 207,578 117,798 3,500 5,475,155
2000 2,916,269 588,304 1,457,390 713,892 72,067 - 224,033 240,653 3,500 6,216,108
2001 3,188,409 790,396 1,185,590 700,702 88,524 65 222,921 268,560 3,500 6,448,667
2002 4,556,291 797,688 666,057 702,775 85,835 82,103 231,287 186,274 114,800 7,423,110
2003 5,061,078 915,589 214,236 836,899 89,752 23,738 247,284 195,131 3,500 7,587,207
2004 5,136,759 1,295,164 218,832 1,222,213 96,902 41,183 251,368 214,120 11,677 8,488,218
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TABLE 3
CITY OF ROSEMOUNT
PROPERTY TAX LEVIES AND COLLECTIONS
YEARS 1995 THROUGH 2O04
(UNAUDITED)
Ratio of Ratio of
Percent of Delinquent Total Total Tax Outstanding Delinquent
Total Tax Current Tax Current Taxes Tax Tax Collections to Delinquent Taxes to Total
Year Levy(1) Collections Collected Collections(2) Collections Total Tax Levy Taxes Tax Levy
1995 $ 3,223,399 $ 3,148,466 97.68% $ 58,543 $ 3,207,009 99.49% $ 16,390 0.51%
1996 4,156,729 4,121,688 99.16% 10,986 4,132,674 99.42% 24,055 0.58%
1997 4,390,586 4,322,160 98.44% 28,133 4,350,293 99.08% 40,293 0.92%
1998 4,862,364 4,840,871 99.56% 59,904 4,900,775 100.79% (38,411) -0.79%
1999 4,864,604 4,829,675 99.28% 35,282 4,864,957 100.01% (353) -0.01%
2000 5,048,133 5,023,467 99.51% 30,744 5,054,211 100.12% (6,078) -0.12%
2001 5,512,262 5,452,863 98.92% 38,029 5,490,892 99.61% 21,370 0.39%
2002 7,101,309 7,073,568 99.61% 74,733 7,148,301 100.66% (46,992) -0.66%
2003 7,740,247 7,652,125 98.86% 59,833 7,711,958 99.63% 28,289 0.37%
2004 8,383,035 8,331,061 99.38% 102,935 8,433,996 100.61% (50,961) -0.61%
(1) The total tax levy differs from actual levy certified to the County by the City because of fiscal disparity calculations done by the County after certification.
(2) Delinquent tax collections are all delinquent collections during that tax year-not just for the delinquent collections of that calendar year.
Page 69
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TABLE 4
CITY OF ROSEMOUNT '
ASSESSED VALUE(OR TAX CAPACITY)AND ESTIMATED MARKET VALUE OF ALL TAXABLE PROPERTY
YEARS 1995 THROUGH 2O04 '
(UNAUDITED)
Total '
Tax
Capacity
Reai Property Personal Property Total as%of '
Local Tax Estimated Local Tax Estimated Local Tax Estimated Estimated State Tax
Net Tax Market Net Tax Market Net Tax Market Market Net Tax
Year Capacity(1) Value Capacity(1) Value Capacity(1) Value Value Capacity(1) '
1995 $ 10,457,896 $ 504,471,000 $ 788,475 $17,847,700 $ 11,246,371 $ 522,318,700 2.15% $ -
1996 11,306,222 550,367,500 807,629 18,240,600 12,113,851 568,608,100 2.13% -
1997 11,080,577 600,557,700 705,144 18,248,900 11,785,721 618,806,600 1.90% - '
1998 10,774,036 638,681,700 645,047 19,097,400 11,419,083 657,779,100 1.74% -
1999 11,859,976 707,783,400 717,210 21,717,800 12,577,186 729,501,200 1.72% -
2000 13,891,830 825,291,700 702,059 21,180,000 14,593,889 846,471,700 1.72% - '
2001 11,205,876 954,693,600 427,790 22,047,100 11,633,666 976,740,700 1.19% 3,480,279
2002 13,098,497 1,131,403,300 426,870 22,150,000 13,525,367 1,153,553,300 1.17% 3,859,896
2003 15,324,087 1,343,848,700 435,343 22,497,500 15,759,430 1,366,346,200 1.15% 4,025,191
2004 17,813,205 1,582,376,400 468,371 24,240,300 18,281,576 1,606,616,700 1.14% 4,224,695 '
(1) For 1997 and 1998,the State Legislature changed the class rates of many types of property. This did not '
have an impact on the estimated market values but it did have the effect of lowering the overall net tax capacity rates.
Beginning with 2001,payable 2002,the State made massive changes to the class rates of almost all properties. This resulted in large
decreases in the overall net tax capacity rates. To offset part of this change,the State added a new"State Tax"on commercial and
industrial properties that helped make up part of the losses. '
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CITY OF ROSEMOUNT
PROPERTY TAX RATES -ALL DIRECT AND OVERLAPPING GOVERNMENTAL UNITS '
YEARS 1995 THROUGH 2O04 �
(UNAUDITED)
ISD 196 ISD 199 t
City Market School Market School Market
Year Referendum District Referendum District Referendum '
Collectible (2) City Rates (3) No. 196 Rates(3) No. 199 Rates(3)
1995 35.778 n/a 62.348 n/a 60.847 n/a �
1996 36.055 0.02968 60.83.0 0.12239 47.629 0.26626
1997 35.627 0.02706 58.189 0.10868 55.643 0.20928 '
1998 40.428 0.02532 58.462 0.09567 53.715 0.23024
1999 41.710 0.02342 56.311 0.08074 55.610 0.24830
2000 39.335 0.02142 53.231 0.11986 43.385 0.20757 ,
2001 36.553 0.01808 53.249 0.10648 44.570 0.19575
2002 59.546 0.01616 28.883 0.17859 16.824 0.10037
2003 57.123 0.01382 27.638 0.16120 14.565 0.19527 '
2004 52.368 0.01138 26.074 0.13978 10.032 0.17096
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(1) Beginning with property taxes payable in 1996, levies for voter approved referendums were based on market
value. Therefore, a separate rate for these market valued levies will be included for the applicable entity for the ,
life of the levies. Since these rates are calculated separately, they are not included in the total tax rates for
for the three school districts.
n/a- Not Applicable '
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� TABLE 5
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' ISD 200 Totals
School Market School School Schooi
' District Referendum Dakota Special District District District
No. 200 Rates(3) County Districts (1) No. 196 No. 199 No. 200
' 64.990 n/a 27.994 4.702 130.822 129.321 133.464
58.675 n/a 26.626 5.108 128.619 115.418 126.464
' 55.510 n/a 25.721 4.995 124.532 9 21.986 121.853
47.023 0.10070 27.349 5.797 132.036 127.289 120.597
69.188 0.00618 28.322 6.702 133.045 132.344 145.922
, 54.881 0.06479 27.247 6.455 126.268 116.422 127.918
51.024 0.11424 25.320 6.378 121.500 112.821 119.275
22.943 0.01366 33.102 5.021 126.552 114.493 120.612
' 22.906 0.01575 32.463 5.563 122.787 109.714 118.055
22.050 0.19486 30.300 5.128 113.870 97.828 109.846
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TABLE 6 �
CITY OF ROSEMOUNT
SCHEDULE OF THE LARGEST TAXPAYERS �
DECEMBER 31, 2004
(UNAUDITED) '
Percentage '
Local of Total
Tax Local Tax
Taxpayer Type of Business Capacity(1) Capacity '
1. Great Northern Oil Co. Oil Refinery $ 1,165,108 6.37% ,
2. Koch Refining Co. Oil Refinery 597,877 327%
3. Northern States Power Co. Utility 284,441 1.56% ,
4. Ciarel Corporation (Cub Foods) Retail 177,582 0.97% '
5. Bigos- Rosemount LLC Manufacturing 86,794 0.47%
(Cannon Equipment) '
6. Webb Properties LLC Manufacturing 77,968 0.43%
7. Limerick Way LLC Townhouses 75,002 0.41% t
8. Continental Nitrogen& Resources(CNR) Fertilizer 73,172 0.40% '
9. CF Industries, Inc. (Cenex) Fertilizer 72,580 0.40%
10. Hidden Valley Spe LLC (Rosemount Woods) Manufactured Housing 68,512 0.37% '
11. Gruett-Labriola Partnership(AWP) Manufacturing 66,784 0.37% '
12. Contractor Property Developers(CPDC) Townhouses 65,895 0.36%
13. D.R. Horton Inc. Minnesota Townhouses 54,104 0.30% �
14. Centex Homes Townhouses 52,365 0.29% �
15. Progress Land Company Townhouses 41,759 0.23%
$ 2,959,943 16.19% '
Total City"Local"Tax Capacity $ 18,281,576 ,
(1)These figures do not include the dollars collected but the tax capacity rate for each entity.
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' TABLE 7
CIN OF ROSEMOUNT
'
SPECIAL ASSESSMENTS RECEIVABLE AND COLLECTIONS
� YEARS 1995 THROUGH 2O04
(UNAUDITED)
' Total Assessments Totai Assessments
Uncollected Uncollected
' Beginning Additional End
Year of Year Assessments Collections (1) of Year
' 1995 $ 1,121,455 $ 1,485,789 $ 1,019,183 $ 1,588,061
1996 1,588,061 881,589 1,373,623 1,096,027
, 1997 1,096,027 1,031,533 1,029,037 1,098,523
199$ 1,098,523 5,131,889 2,614,057 3,616,355
1999 3,616,355 5,659,779 3,679,095 5,597,039
, 2000 5,597,039 5,389,660 7,464,735 3,521,964
2001 3,521,964 17,678 1,635,841 1,903,801
2002 1,903,801 3,546,435 993,382 4,456,854
, 2003 4,456,854 1,984,112 1,533,648 4,907,318
2004 4,907,318 277,320 1,590,026 3,594,612
� (1) Includes prepayments and foreclosures
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TABLE 8 '
CITY OF ROSEMOUNT
COMPUTATION OF LEGAL DEBT MARGIN '
DECEMBER 31, 2004 �
(UNAUDITED)
Estimated Market Vaiue $ 1,606,616,700 �
Legal Debt Margin:
,
Debt Limitation -2% of Estimated Market Value $ 32,132,334 '
Debt Applicable to Limitation:
Total Bonded Debt $ 26,870,000 ,
Less: Special Assessment Bonds $ 11,340,000
Tax Increment Bonds -
Revenue Bonds 6,475,000 '
Port Authority Bonds 7,150,000
State Aid Street Bonds -
Amount Available for Repayment of �
General Obligation Bonds 343,515 25,308,515
Total Debt Applicable to Limitation 1,561,485 �
Legal Debt Margin $ 30,570,849
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CITY OF ROSEMOUNT
RATIO OF NET BONDED DEBT TO ASSESSED VALUE (OR TAX CAPACITY)AND �
MARKET VALUE AND NET BONDED DEBT PER CAPITA
YEARS 1995 THROUGH 2O04 �
(UNAUDITED}
'
Less Debt '
Gross Less Debt Payable Net
Tax Market Bonded Service from Other Bonded ,
Year Population (1)Capacity(2)(3) Value (3) Debt(4) Funds (5) Sources (6) Debt
1995 11,721 $ 11,246,371 $ 522,318,700 $ 22,725,000 $ 253,229 $ 20,810,000 $ 1,661,771 �
1996 12,272 12,113,851 568,608,100 22,710,000 424,251 19,205,000 3,080,749
1997 12,763 11,785,721 618,806,600 24,295,000 398,482 21,030,000 2,866,518
1998 13,146 11,419,083 657,779,100 30,130,000 431,469 27,075,000 2,623,531 �
1999 13,544 12,577,186 729,501,200 37,025,000 465,395 34,190,000 2,369,605
2000 14,619 14,593,889 846,471,700 37,475,000 501,164 34,870,000 2,103,836
2001 15,270 11,633,666 976,740,700 40,360,000 1,243,964 37,270,000 1,846,036 '
2002 16,110 13,525,367 1,153,553,300 41,885,000 1,001,559 39,040,000 1,843,441
2003 18,700 15,759,430 1,366,346,200 30,230,000 327,215 28,190,000 1,712,785
2004 19,907 18,281,576 1,606,616,700 26,870,000 343,515 24,965,000 1,561,485 �
(1) Figures taken from Table 13. ,
(2) See note at Table 4.
(3) Figures taken from Table 4.
(4) Figure includes all debt of the City(all debt is issued as general obligation debt). '
(5) Amount available for repayment of general obiigation bonds that are property tax supported (See Table 8).
(6) Includes all other general obligation bonds that are being repaid through other sources inciuding (See Table 8):
(a) Special Assessment Bonds '
(b) Tax Increment Bonds
(c) Revenue Bonds
(d) Port Authority Bonds '
(e) State Aid Street Bonds
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ITABLE 9
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Net
, Bonded Debt
as a
Percent of Net Bonded
, Tax Market Debt
Capacity(2) Value Per Capita
, 14.78% 0.32% $ 142
25.43% 0.54% 251
24.32% 0.46% 225
� 22.97% 0.40% 200
18.84% 0.32% 175
14.42% 0.25% 144
� 15.87% 0.19% 121
13.63% 0.16% 114
10.87% 0.13°/a 92
1 8.54% 0.10% 78
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TABLE 10 I
CITY OF ROSEMOUNT
RATIO OF ANNUAL DEBT SERVICE EXPENDITURES FOR �
GENERAL BONDED DEBT(1)TO TOTAL GENERAL FUND EXPENDITURES �
YEARS 1995 THROUGH 2O04
(UNAUDITED)
'
Ratio of
Total Debt Service �
Total General to
Debt Fund General Fund
Year Principal (1) Interest(1) Service (1) Expenditures (2) Expenditures (3) ,
1995 $ 975,000 $ 129,938 $ 1,104,938 $ 4,359,168 25.3%
1996 190,000 95,130 285,130 4,496,577 6.3% '
1997 240,000 188,159 428,159 4,505,607 9.5%
1998 210,000 171,170 381,170 4,721,782 8.1%
1999 220,000 162,125 382,125 4,895,199 7.8% �
2000 230,000 152,253 382,253 5,492,144 7.0%
2001 240,000 141,540 381,540 6,419,086 5.9°/a �
2002 245,000 149,420 394,420 5,998,389 6.6%
2003 120,000 149,980 269,980 8,000,716 3.4%
2004 135,000 99,888 234,888 7,722,617 3.0% '
(1) Includes only general obligation bonds supported solely by taxes. '
(2) Figures taken from Table 1.
(3) 1995 includes call payment on a refunding bond.
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1997 includes first principal and interest payments on Fire Station Bonds, Series 1996A. '
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� TABLE 11
CITY OF ROSEMOUNT
' COMPUTATION OF DIRECT AND OVERLAPPING BONDED DEBT
GENERAL OBLIGATION BONDS
� DECEMBER 31,2004
(UNAUDITED)
'
Net General
' Obligation Percentage Amount
Bonded Debt Applicable Applicable
Governmental Units Outstanding (2) to City(6) to City
' Direct Debt:
City of Rosemount $ 1,561,485 (3) 100.00% $ 1,561,485
� Overlapping Debt(1):
Schooi Districts:
I.S.D. 196-Rosemount 149,043,358 (4) 11.40% 16,990,943
' I.S.D. 199- Inver Grove Heights 8,150,000 4.90% 399,350
I.S.D. 200-Hastings 46,570,000 10.00% 4,657,000
' Dakota County 90,715,000 4.60% 4,172,890
Regional:
' Metropolitan Council 37,230,000 (5) 0.60% 223,380
Metropolitan Transit District 176,245,000 0.70% 1,233,715
' Total Overlapping Debt $ 507,953,358 $ 27,677,278
Total Direct&Overlapping Debt $ 509,514,843 $ 29,238,763
, (1) Only those units with debt outstanding are shown here.
, (2) Overlapping debt figures exclude debt supported by revenues and tax
and aid anticipation debt.
' (3) Net general obligation bonded debt of the city supported by property taxes (see table 9).
(4) Includes$17,360,000 of annual appropriation lease revenue debt.
� (5) Does not include outstanding general obligation debt supported by sewer revenues, 911 user fees or
housing rental payments. Includes$13,530,000 of annual appropriation certificates of participation.
� (6) Percent of governmental unit within the City of RosemounYs boundaries calculated
by the city's fiscal consultants,Springsted Inc.
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TABLE 12 I
CITY OF ROSEMOUNT
REVENUE BOND COVERAGE '
YEARS 1995 THROUGH 2O04
(UNAUDITED) �
Net Revenue Debt Service '
Available Requirements
Gross For Debt '
Year Revenue Expenses (1) Service Principal (2) Interest Total Coverage
1995 $ 1,412,272 $1,030,987 $ 381,285 $ 135,000 $ 213,988 $ 348,988 109.25% �
1996 1,571,350 1,078,097 493,253 215,000 204,663 419,663 117.54%
1997 1,601,842 1,200,803 401,039 1,105,000 277,370 1,382,370 29.01%
1998 1,837,331 1,282,660 554,671 320,000 193,193 513,193 108.08% �
1999 2,058,292 1,274,656 783,636 330,000 179,213 509,213 153.89%
2000 2,418,849 1,323,393 1,095,456 350,000 199,265 549,265 199.44%
2001 2,413,096 1,527,253 885,843 395,000 241,294 636,294 139.22% �
2002 2,597,820 1,770,676 827,144 1,245,000 291,881 1,536,881 53.82%
2003 3,082,235 1,892,152 1,190,083 615,000 237,038 852,038 139.67%
2004 2,916,501 2,390,070 526,431 600,000 286,546 886,546 59.38% '
1 Fi ure does n ' '
( } g ot include depreciation expense
(2) 1997 includes call payment on 1989A Revenue Bonds&2002 includes call payment on 1992B Revenue Bonds. '
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� TABLE 13
CITY OF ROSEMOUNT
' DEMOGRAPHIC STATISTICS
YEARS 1995 THROUGH 2O04
' (UNAUDITED)
r
Per Capita School Unemployment Median
� Year Population (1) Income(2) Enrollment(3) Rate(4) Age(5)
1995 11,721 $ 26,038 5,331 2.5% 30.2
� 1996 12,272 27,488 5,000 2.6% 30.2
1997 12,763 29,864 4,188 2.0% 30.2
1998 13,146 31,775 4,084 1.8% 30.2
, 1999 13,544 33,193 5,651 1.9% 30.2
2000 14,619 35,448 3,190 2.2% <35.4
2001 15,270 36,788 3,638 2.8% <35.4
' 2002 16,110 37,289 4,262 3.7% <35.4
2003 16,794 n/a 3,849 4.2% <35.4
2004 19,907 n/a 4,111 4.1% <35.4
'
(1) 2000 is a regular decennial census figure. All other years prior to 2004 are best available
� estimates provided by the Minnesota State Demographic Center(as of 4/1 of each year)and 2004 is the City staffs
best estimate.
� (2) These figures are provided by the Minnesota State Demographic Center and are for Dakota County.
These figures usually have a 2 to 3-year lag time so that is why the finro most current years have"n/a".
� (3) 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. The significant drop in 1997 is because of the
� opening of a fourth high school in the district which caused a shifting of the Rosemount High School's population.
Beginning in 2000, the total school enrollment will show the total number of students with homes in
the City of Rosemount.
' (4) Unemployment rates were compiled by the Minnesota Local Area Unemployment Statistics(LAUS)-for Dakota Counry
and are an annual average for the year.
' (5) These figures are provided by the Census Bureau and are for Dakota County.
Figures prior to 2000 will be reflective of the 1990 census and figures from
' 2000 forward will be reflective of the 2000 census.
n/a-Data not available.
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TABLE 14
CITY OF ROSEMOUNT
PROPERTY VALUE AND CONSTRUCTION
YEARS 1995 THROUGH 2O04
(UNAUDITED)
Commercial/lndustrial Residential
Construction Construction
Property Value(1) #of #of
Year Commercial Residential Agricultural Total Permits Value Permits Value
1995 $ 133,848,200 $ 371,130,100 $ 17,340,400 $ 522,318,700 43 $ 8,396,669 598 $ 21,980,180
1996 138,085,100 412,697,700 17,825,300 568,608,100 51 7,041,948 604 21,399,002
1997 143,300,500 455,945,00� 19,561,100 618,806,600 57 8,650,087 544 15,523,565
1998 150,422,500 486,616,300 20,740,300 657,779,100 72 8,086,134 667 23,853,221
1999 171,330,700 538,288,100 19,882,400 729,501,200 66 7,130,240 955 43,820,487
2000 188,161,200 636,261,900 22,048,600 846,471,700 68 10,070,976 794 42,054,241
2001 198,595,800 753,624,600 24,520,300 976,740,700 88 17,455,749 921 65,441,418
2002 200,634,000 924,618,800 28,300,500 1,153,553,300 91 21,465,696 1,307 60,933,124
2003 209,026,400 1,123,114,000 34,205,800 1,366,346,200 97 5,167,412 1,031 91,705,297
2004 218,668,600 1,355,123,500 32,824,600 1,606,616,700 52 10,439,104 1,106 115,908,943
(1) Estimated market value-totals are from Table 4.
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' TABLE 15
CITY OF ROSEMOUNT
� MISCELLANEOUS STATISTICS
DECEMBER 31,2004
(UNAUDITED)
, Date of Incarporation 1858
Form of Government(Statutory) Council/City Administrator
Number of Employees
� Regular Full-time 76
Part-time or Temporary 162
Area in Square Miles 36
' City of Rosemount Facilities and Services:
Miles of Streets 121.23
Number of Street Lights 1,032
� Culture and Recreation:
Community Centers 1
Parks 23
Park Acreage 302
, Tennis Courts 4
Fire Protection:
Number of Stations �
� Number of Fire Personnel and Officers 37
Number of Calis Answered 550
Number of Vehicles 11 and 1 Trailer
Police Protection:
' Number of Stations �
Number of Police Personnel and Officers:
Swom Officers 19
Other Police Personnel 4
� Number of Calls for Service 13,128
Number of Patrol Miles 200,117
Number of Patrol Vehicles:
' Marked g
Unmarked 4
Sewer System:
Miles of Sanitary Sewers 69.80
' Miles of Storm Sewers 50.74
Number of Service Connections 5,555
Water System:
� Miles of Water Mains:
Municipai/Rural 97.32
Number of Service Connections 5,687
Number of Welis:
, Municipal q
Rural 2
Number of Water Towers 3
Number of Fire Hydrants g72
' Daily Average Consumption in Gallons 2,007,841
Maximum Daily Pumping Capacity in Gallons 6,000,000
Public Education Facilities:
' Number of Elementary Schools 2
Number of Secondary Schools 2
tJumber of Special Education Schools 1 (Dakota County Technical College)
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Expenses and Program Revenues - Governmental Activities
' �Expenses
— �Revenue
12
' 10 —
8
' Millions 6 —
4
2 � ,w
, 0 's.... .�,,,:,:,.,�,:. ¢ � :., �
General Government Public Safety Public Works Recreation Community Interest on long-term
Development debt
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� Revenues by Source - Governmental Activities
�� � � � � � � � � � �u; � �
� Inve<.�tment income and Taxes
miscelianeous 33°/a
36°!0
�
Sp�ecial assessments
7%
� Intergovemmental
8%
Fimes and forfeitures
0°/a
Licenses and permits Pubiic charges for
� 5% services
11%
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� Business-type activities. Business-type activities increased the City's net assets by $9,721,512,
accounting for 62 percent of the total growth in the government's net assets.
1 Expenses and Program Revenues - Business-type Activities
❑Expenses
� � — � �Revenue
..�^-t...;:�°'
6
' S
4 �'sz:s::a
Millions
3
� z —
1
� 0 ?s";`" _ *-'s� �,..�`� .. ,
Water Sewer Storm water Ice Arena
�
Revenues by Source - Business-type Activities
tInvestment income Surcharges and penalties
3%
5% J
' :ipecial assessments �
3%
Charges for services
37%
� A
„1;
T�
�� V
� �� ���4
, �
l y�
*� 'rc:� "" .
' Connection fees
50% Water meters
2%
�{�;: x*?
� ��E�,.,a „ � �
Financial Analysis of the Government's Funds
' As noted earlier, the City uses fund accounting to ensure and demonstrate compliance with finance-related
legal requirements.
� Governmental funds. The focus of the City's governmental funds is to provide information on near-term
inflows, outflows, and balances of spendable resources. Such information is useful in assessing the City's
financing requirements. In particular, unreserved fund balance may serve as a useful measure of a
' government's net resources available for spending at the end of the fiscal year.
�
Page 7
'
ATTEST:
A RESOLUTION ACCEPTING THE 2004 COMPREHENSIVE ANNUAL
FINANCIAL REPORT
WHEREAS, the City of Rosemount has been presented its 2004 Comprehensive
Annual Financial Report, prepared by the audit firm of Virchow, Krause Company.
NOW, THEREFORE, BE IT RESOLVED, that the City Council of the City of
Rosemount, accepts its 2004 Comprehensive Annual Financial Report, prepared by the
audit firm of Virchow, Krause Company.
ADOPTED this 7 day of June, 2005.
Linda J. Jentink, City Clerk
CITY OF ROSEMOUNT
DAKOTA COUNTY, MINNESOTA
RESOLUTION 2005
William H. Droste, Mayor
Motion by: Seconded by:
Voted in Favor:
Voted Against:
Members Absent: