HomeMy WebLinkAbout3.b. Presentation and Acceptance of 2007 Comprehensive Annual Financial Report (CAFR)AGENDA ITEM: Presentation and Acceptance of 2007
Comprehensive Annual Financial Report
(CAFR)
AGENDA SECTION:
Department Head Report
PREPARED BY: Jeff May, Finance Director
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AGENDA NO. vJ
h
ATTACHMENTS: Resolution and 2007 CAFR
APPROVED BY: V
RECOMMENDED ACTION: Motion to adopt a Resolution Accepting the 2007
Comprehensive Annual Financial Report.
4 ROSEMOUNT
CITY COUNCIL
City Council Meeting Date: June 3, 2008
EXECUTIVE SUMMARY
ISSUE
Review and accept the 2007 CAFR.
BACKGROUND
A representative from our audit firm, Virchow Krause Company, will be here on Tuesday evening, June
3` to review the City of Rosemount's 2007 CAFR. The representative will give a brief presentation,
highlighting items that may be worthy of your attention and will also be available to answer any questions
that you may have. 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!!
SUMMARY
Recommend the above motion to accept the 2007 CAFR.
ATTEST:
CITY OF ROSEMOUNT
DAKOTA COUNTY, MINNESOTA
RESOLUTION 2008
A RESOLUTION ACCEPTING THE 2007 COMPREHENSIVE ANNUAL
FINANCIAL REPORT
WHEREAS, the City of Rosemount has been presented its 2007 Comprehensive
Annual Financial Report, prepared with the assistance of our audit firm of Virchow,
Krause Company.
NOW, THEREFORE, BE IT RESOLVED, that the City Council of the City of
Rosemount, accepts its 2007 Comprehensive Annual Financial Report, prepared with
the assistance of our audit firm of Virchow, Krause Company.
ADOPTED this 3 day of June, 2008.
Amy Domeier, City Clerk
William H. Droste, Mayor
Motion by: Seconded by:
Voted in Favor:
Voted Against:
Members Absent:
Honorable Mayor and Members of City Council
City of Rosemount, Minnesota
Virchow K rause
&company
AUDITOR'S REPORT ON LEGAL COMPLIANCE
We have audited the basic financial statements of the governmental activities, the business -type
activities, each major fund, and the aggregate remaining fund information of the City of
Rosemount as of and for the year ended December 31, 2007 and have issued our report thereon
dated May 15, 2008.
We conducted our audit in accordance with auditing standards generally accepted in the United
States of America and the provisions of the Minnesota Legal Compliance Audit Guide for Local
Government, promulgated by the State Auditor pursuant to Minnesota Stat. 6.65. Accordingly,
the audit included such tests of the accounting records and such other auditing procedures as
we considered necessary in the circumstances.
The Minnesota Legal Compliance Audit Guide for Local Government covers seven categories of
compliance to be tested: contracting and bidding, deposits and investments, conflicts of interest,
public indebtedness, claims and disbursements, miscellaneous provisions, and Tax Increment
Financing. Our study included all of the listed categories.
The results of our tests indicate that for the items tested, the City of Rosemount, Minnesota
complied with the material terms and conditions of applicable legal provisions.
This report is intended solely for the information and use of management, the City Council, and
state agencies, and is not intended to be, and should not be, used by anyone other than those
specified parties.
Minneapolis, Minnesota
May 15, 2008
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Virchow, Krause Company, LLP
Certified Public Accountants Consultants An Independent Member of Baker Tilly International
CITY OF ROSEMOUNT
REPORT ON INTERNAL CONTROL
(Including Memorandum on Accounting Procedures,
Internal Controls and Other Matters)
December 31, 2007
To the City Council
City of Rosemount
Rosemount, Minnesota
Virchow Krause
&company
In planning and performing our audit of the basic financial statements of the City of Rosemount,
Minnesota for the year ended December 31, 2007, in accordance with auditing standards generally
accepted in the United States of America, we considered the City's internal control over financial reporting
as a basis for designing our auditing procedures for the purpose of expressing our opinion on the financial
statements, but not for the purpose of expressing an opinion on the effectiveness of its internal control.
Accordingly, we do not express an opinion on the effectiveness of its internal control.
Our consideration of the City's internal control was for the limited purpose described in the preceding
paragraph and would not necessarily identify all deficiencies in internal control that might be significant
deficiencies or material weaknesses. However, as discussed below, we identified certain deficiencies in
internal control that we consider to be significant deficiencies and other deficiencies that we consider to
be material weaknesses.
A control deficiency exists when the design or operation of a control does not allow management or
employees, in the normal course of performing their assigned functions, to prevent or detect
misstatements on a timely basis. A significant deficiency is a control deficiency, or combination of control
deficiencies, that adversely affects the entity's ability to initiate, authorize, record, process, or report
financial data reliably in accordance with generally accepted accounting principles such that there is more
than a remote likelihood that a misstatement of the entity's financial statements that is more than
inconsequential will not be prevented or detected by the entity's internal control.
A material weakness is a significant deficiency, or combination of significant deficiencies, that results in
more than a remote likelihood that a material misstatement of the financial statements will not be
prevented or detected by the entity's internal control. We believe that the following deficiencies constitute
material weaknesses.
During the current year audit, several deficiencies were noted throughout major transaction
cycles. See the discussion in the attached memorandum under Material Weakness Internal
Controls.
The same person performs tasks that under ideal situations should be segregated from each
other. See the discussion in the attached memorandum under Material Weakness Segregation of
Duties.
Currently the financial statements are prepared by the auditor. See the discussion in the attached
memorandum under Material Weakness Internal Control over Financial Reporting.
During the current year audit, several material journal entries were identified and recorded. See
the discussion in the attached memorandum under Material Weakness Internal Control over
Financial Reporting.
This communication is intended solely for the information and use of the City Council and City of
Rosemont's management and is not intended to be, and should not be, used by anyone other than the
specified parties.
Minneapolis, Minnesota
May 15, 2008
Virchow, Krause Company, LLP
Certified Public Accountants Consultants An Independent Member of Baker Tilly International
MATERIAL WEAKNESS INTERNAL CONTROLS
As you are likely aware, we performed your current year audit following a lot of new requirements.
We asked for a large amount of information about your accounting process and controls. We then
performed a number of new audit procedures and inquiries including evaluating the effectiveness
of those controls over various transaction cycles. As a result of this new additional work we did,
we are able to provide to you information about where your controls over transactions either do
not exist, or could be improved.
Below is a list of potential controls that should be in place to achieve a higher level of reliability
that errors or irregularities in your processes would be discovered by your staff. Our procedures
identified that these controls do not currently exist for the City of Rosemount. Keep in mind that
some of these controls may not be practical due to your staff size or other reasons. However, we
are required to communicate these to you. In addition, as you make changes within your
organization, and we continue to rotate audit procedures, more controls of this kind will likely be
communicated to you.
CONTROLS OVER ACCOUNTS PAYABLE/DISBURSEMENTS
1. Monthly budget to actual reports are not retained by reviewers to show evidence of their
review.
2. There is not an appropriate system in place for review and approval of vendors.
CONTROLS OVER PAYROLL
1. Access to the payroll module should be restricted to only payroll personnel. Others should
not have access to set up a new employee in the system or change employee pay rates
and data within the payroll system.
CONTROLS OVER FINANCIAL REPORTING
1. Adjusting journal entries and supporting documentation are not reviewed and approved by
an appropriate person who is not the original preparer.
2. A financial statement disclosure checklist or similar tool is not utilized by the government
to ensure the completeness of the statements in accordance with GASB reporting
requirements.
3. Controls do not exist for the identification and review of necessary financial reporting
disclosures, such as commitments and contingencies, related party transactions, and
subsequent events.
Because this is all relatively new information, a next step might be to have a designated person in
your organization review these potential controls and make a suggestion on your community's
ability and cost (including time) to implement some or all of them. We can assist with that process.
Page 2
MATERIAL WEAKNESS INTERNAL CONTROL OVER FINANCIAL REPORTING
As we reported to you last year, we are required to communicate to you about your internal
controls. In theory, a properly designed system of internal control staffed with enough people with
sufficient training would provide your organization with the ability to not only process and record
monthly transactions, but also to prepare a complete set of annual financial statements. Most of
our clients do a good job of processing and recording monthly transactions. However, very few
have the skills or the time needed to prepare annual financial statements.
The definition of a material weakness in internal control includes consideration of the year end
financial reporting process. To avoid the auditor reporting a material weakness in internal control,
your system of controls would need to be able to accomplish the following:
1. Present the books and records to the auditor in such a condition that the auditor is not
able to identify any material journal entries as a result of our audit procedures. This is very
rare for most of our clients.
2. Be capable of preparing a complete set of year end financial statements for the auditor to
test. Currently, almost all of our clients have us prepare the financial statement document.
This includes drafting the individual fund statements, making conversion entries, drafting
the government -wide statements, and preparing footnote disclosures. Your staff would
need to be capable of presenting the auditor with a set of complete financial statements in
such a condition that the auditor is not able to identify any material changes as a result of
the audit.
To accomplish such a high level of internal control over financial reporting is a difficult task for
most governments. Many large organizations, such as SEC companies, have been required by law
to prepare their own statements for years, and are staffed appropriately to do so. Most
governments operate with only enough staff to process monthly transactions and reports, and so
rely on us to prepare certain year end audit entries and handle the year end financial reporting.
Under the new auditing standards, we must, therefore, inform you that these are material
weaknesses in your internal control.
If you have any questions on this, please contact your audit team.
MATERIAL WEAKNESS SEGREGATION OF DUTIES
Under ideal conditions, there are many procedures and controls designed to limit the access of
any one individual to your assets. Because of your size, you do not have a large administrative
staff or complex controls. This is not unusual for municipalities your size, but we are required to
inform you that this condition exists. Many internal control procedures may not be practical from
your point of view.
Because some controls do not exist, you should rely more heavily on your direct knowledge of the
City operations and day to day contact with employees to control and safeguard assets. This may
continue to be an acceptable method for you to use for many years to come. The purpose of this
portion of our comments is to keep you aware of the importance of having good people and
maintaining close contact with them and the operation of the City. Please refer to our additional
comments about internal control weaknesses elsewhere in this report.
Page 3
NEW AUDITING STANDARD STATEMENT ON AUDITING STANDARD (SAS) NO. 114
As part of our audit of your financial statements for the year ended December 31, 2007, we are
required to follow a significant new auditing standard.
The new standard requires that we communicate with those charged with governance: in other
words, the persons with responsibility for overseeing the strategic direction and accountability of
the entity. Usually in local government this means the governing body.
The new standards require that we communicate:
Our responsibilities under generally accepted auditing standards
An overview of the planned scope and timing of the audit; and
Significant findings from the audit.
Significant findings may include:
The auditor's view about the quality of significant accounting practices
Any significant difficulties encountered during the audit
Uncorrected misstatements
Any disagreements with management
Representations requested from management
Management's consultations with other accountants
Any other significant issues.
What does this mean to your organization? Quite simply, it means we will increase our
communications with you throughout the audit process. We have included an additional letter
discussing this matter in more detail.
In addition, as this audit is concluded, we use what we have learned to begin the planning process
for next year's audit. It is important that you understand the following points about the scope and
timing of our next audit:
a. We will address the significant risks of material misstatement, whether due to fraud or
error, through our detailed audit procedures.
b. We will obtain an understanding of the five components of internal control sufficient to
assess the risk of material misstatement of the financial statements whether due to error
or fraud, and to design the nature, timing, and extent of further audit procedures. We will
obtain a sufficient understanding by performing risk assessment procedures to evaluate
the design of controls relevant to an audit of financial statements and to determine
whether they have been implemented. We will use such knowledge to:
Identify types of potential misstatements.
Consider factors that affect the risks of material misstatement.
Design tests of controls, when applicable, and substantive procedures.
We will not express an opinion on the effectiveness of internal control over financial
reporting or compliance with laws, regulations, and provisions of contracts or grant
programs.
Page 4
NEW AUDITING STANDARD STATEMENT ON AUDITING STANDARD (SAS) NO. 114 (cont.)
c. The concept of materiality recognizes that some matters, either individually or in the
aggregate, are important for fair presentation of financial statements in conformity with
generally accepted accounting principles while other matters are not important. In
performing the audit, we are concerned with matters that, either individually or in the
aggregate, could be material to the financial statements. Our responsibility is to plan and
perform the audit to obtain reasonable assurance that material misstatements, whether
caused by errors or fraud, are detected.
We are very interested in your views regarding certain matters. Those matters are listed here:
a. We typically will communicate with your top level of management unless you instruct us
otherwise.
b. We understand that the City Council has the responsibility to oversee the strategic
direction of your organization, as well as the overall accountability of the entity.
Management has the responsibility for achieving the objectives of the entity.
c. What are your views regarding your municipality's objectives and strategies, and the
related business risks that may result in material misstatements?
d. Which matters do you consider warrant particular attention during the audit, and are there
any areas where you request additional procedures to be undertaken?
e. Have you had any significant communications with regulators?
f. Are there other matters that you believe are relevant to the audit of the financial
statements?
Also, is there anything that we need to know about the attitudes, awareness, and actions of the
City concerning:
a. The City's internal control and its importance in the entity, including how those charged
with governance oversee the effectiveness of internal control?
b. The detection or the possibility of fraud?
We also need to know if you have taken actions in response to developments in financial
reporting, laws, accounting standards, governance practices, or other related matters, or in
response to previous communications with us.
With regard to the timing of our audit, here is some general information. If necessary, we may do
preliminary audit work during the months of October December, and sometimes early January.
Our final fieldwork is scheduled during the spring to best coincide with your readiness and report
deadlines. After fieldwork, we wrap up our audit procedures at our office and may issue drafts of
our report for your review. Final copies of our report and other communications are issued after
approval by your staff. This is typically 6 -8 weeks after final fieldwork, but may vary depending on
a number of factors.
Keep in mind that while this new communication may assist us with planning the scope and timing
of the audit, it does not change the auditor's sole responsibility to determine the overall audit
strategy and the audit plan, including the nature, timing, and extent of procedures necessary to
obtain sufficient appropriate audit evidence.
This is a lot of information to absorb, and we realize that you may have questions on what it
means, or wish to provide other feedback. We welcome any comments or questions you may have
regarding this new standard.
Page 5
OTHER MATTERS
DOCUMENTATION OF INTERNAL CONTROLS
Last year we noted that we look at the documentation of your internal controls. As is the case with
most of our clients, this has not been a high priority for you in the past. Due to a lack of
documentation, we reported a material weakness as required under the auditing standards.
To get ready for the 2007 audit, we provided a number of forms and instructions to your staff.
They provided us with a lot of new information which we reviewed as part of the expanded audit
procedures. The result is that the major transaction cycles for your organization have been
documented sufficiently for us to eliminate the material weakness that we reported last year.
Each year from now on you will need to update that information as part of the audit process. You
may also find that it would be beneficial for you to use this new documentation as the starting
point for a more detailed set of procedures. Typically called an accounting procedures manual,
this would be very useful to your staff as a training tool and would be critical in the event of staff
illness or turnover. Since the groundwork is already in place, all that would be necessary would be
to expand the processes and controls that you have documented with more of the detailed
procedures. This would enable you to get some value out of the work you and we have already
completed. Contact your audit team for a further discussion about this topic.
GASB No. 51: ACCOUNTING AND FINANCIAL REPORTING FOR INTANGIBLE ASSETS
Governments possess many different types of assets that may be considered intangible assets,
including easements, water rights, timber rights, patents, trademarks, and computer software.
Statement No. 51 requires that all intangible assets be classified as capital assets (except for
some that are specifically excluded). Accordingly, existing authoritative guidance related to the
accounting and financial reporting for capital assets should be applied to these intangible assets,
as applicable.
That means that the city should treat costs incurred for intangible assets the same as it would
treat costs incurred for other capital assets like a truck or building. Intangible assets will be written
off over their useful life (using amortization). The City of Rosemont is required to implement
Statement No. 51 retroactively and is effective for the year ended December 31, 2010. Assets with
indefinite useful lives (such as easements) and internally generated software are exempt from the
retroactive calculation.
PROPOSED GASB CHANGES
The Governmental Accounting Standards Board (GASB) continues to propose changes to
governmental financial reporting. There is currently one issue under review which will likely affect
your financial statements in the future: a proposed change to the definitions used for fund balance
reporting.
The GASB is considering these changes in an effort to make it easier for the reader of financial
statements to determine reserved, designated and undesignated fund balances. The final
document has been delayed a year and is now expected to be issued in the fourth quarter of 2008.
Page 6
PROPOSED GASB CHANGES (cont.)
Last year we indicated that this project also included a change in the definition of fund types that
would impact many governments that use special revenue, debt service, and capital project funds.
GASB continues to discuss ways to make the definitions of the various fund types more
meaningful however, the prospect of widespread reductions in the number of funds that you
maintain has greatly diminished from a year ago.
The impact of these changes will not be clear until GASB issues the exposure draft of the
proposed changes. We will keep you informed as we find out more information.
CONCLUSION
In closing, we would like to thank you for allowing us to serve you. We are very interested in the
long -term success of the City of Rosemount and our comments are intended to draw your
attention to issues which need to be addressed for the to meet its goals and responsibilities.
This letter, by its nature, focuses on improvements and does not comment on the many strong
areas of the City's systems and procedures. The City's staff seemed genuinely concerned about
maintaining the City's financial reporting system so that informed decisions can be made. They
were receptive to our ideas, comments and suggestions.
Page 7
To the City Council
City of Rosemount
Rosemount, Minnesota
a
Virchow K raus e
&company
We have completed our audit of the financial statements of City of Rosemount for the year ended
December 31, 2007, and have issued our report thereon dated May 15, 2008. This letter
presents communications required by our professional standards.
Our Responsibility under Auditing Standards Generally Accepted in the United States of
America
The objective of a financial statement audit is the expression of an opinion on the financial
statements. We conducted the audit in accordance with auditing standards generally accepted in
the United States of America. These standards require that we plan and perform our audit to
obtain reasonable, rather than absolute, assurance about whether the financial statements
prepared by management with your oversight are free of material misstatement, whether caused
by error or fraud. Our audit included examining, on a test basis, evidence supporting the
amounts and disclosures in the financial statements, assessing accounting principles used and
significant estimates made by management, and evaluating the overall financial statement
presentation. Our audit does not relieve management or (those charged with governance) of their
responsibilities.
As part of the audit we obtained an understanding of the entity and its environment, including
internal control, sufficient to assess the risks of material misstatement of the financial statements
and to design the nature, timing and extent of further audit procedures. The audit was not
designed to provide assurance on internal control or to identify deficiencies in internal control.
Other Information in Documents Containing Audited Financial Statements
Our responsibility does not extend beyond the audited financial statements identified in this
report. We do not have any obligation to and have not performed any procedures to corroborate
other information contained in client prepared documents, such as official statements related to
debt issues.
Planned Scope and Timing of the Audit
We performed the audit according to the planned scope and timing previously communicated to
you in our letter about planning matters dated January 28, 2008.
Qualitative Aspect of 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 described in Note 1 to the financial statements. No new
accounting policies were adopted and the application of existing policies was not changed during
2007. 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
Certified Public Accountants Consultants An Independent Member of Baker Tilly International
To the City Council
City of Rosemount
Accounting estimates are an integral part of the financial statements prepared by management
and are based on management's knowledge and experience about past and current events and
assumptions about future events. Certain accounting estimates are particularly sensitive
because of their significance to the financial statements and because of the possibility that future
events affecting them may differ significantly from those expected. We are not aware of any
particularly sensitive accounting estimates utilized by management in its financial statement
process.
The disclosures in the financial statements are neutral, consistent, and clear.
Difficulties Encountered in Performing the Audit
We encountered no significant difficulties in dealing with management in performing our audit.
Audit Adjustments
Professional standards require us to accumulate all known and likely misstatement identified
during the audit, other than those that are trivial, and communicate them to the appropriate level
of management.
For purposes of this letter, professional standards define an audit adjustment as a proposed
correction of the 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. Matters
underlying adjustments proposed by the auditor could potentially cause future financial
statements to be materially misstated.
All audit and bookkeeping adjustments we prepared were included in your financial statements.
Copies of these adjustments are available from management. Some of the entries we proposed
did have a material effect on your financial reporting process such as:
Adjustments to special assessments
Record contributed assets
Record depreciation
Record new water tower
Record unbilled revenue
Capitalize new well
Disagreements with Management
261,000
4,645,000
2,000,000
2,774,000
315,000
1,377,000
In addition, the attached schedule summarizes uncorrected misstatements (Passed Adjustments
Schedule) of the financial statements. Management has determined that their effects are
immaterial, both individually and in the aggregate, to the financial statements taken as a whole.
For purposes of this letter, professional standards define a disagreement with management as a
matter, whether or not resolved to our satisfaction, concerning a financial accounting, reporting,
or auditing matter that could be significant to the financial statements or the auditor's report. We
are pleased to report that no such disagreements arose during the course of our audit.
To the City Council
City of Rosemount
Consultations with Other Independent Accountants
In some cases, management may decide to consult with other accountants about auditing and
accounting matters. If a consultation involves application of an accounting principle to the
governmental unit's financial statements or a determination of the type of auditors' opinion that
may be expressed on those statements, our professional standards require the consulting
accountant to check with us to determine that the consultant has all the relevant facts. To our
knowledge, there were no such consultations with other accountants.
Management Representations
We have requested certain representations from management that are included in the
management representation letter. This letter is attached.
Independence
We are not aware of any relationships between Virchow, Krause Company, LLP and the City
that, in our professional judgment, may reasonably be thought to bear on our independence.
Relating to our audit of the financial statements of for the year ended December 31, 2007,
Virchow, Krause Company, LLP hereby confirms in accordance with Independence Standards
Board Statement No. 1, that we are, in our professional judgment, independent with respect to
the City and provided no services to the City other than audit services provided and the following
nonaudit services which in our judgment do not impair our independence.
Financial statement preparation
Adjusting journal entries
Other Audit Findings or Issues
We generally discuss a variety of matters, including the application of accounting principles and
auditing standards, with management each year prior to retention as the City of Rosemount's
auditors. However, these discussions occurred in the normal course of our professional
relationship and our responses were not a condition to our retention.
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.
Minneapolis, Minnesota
May 15, 2008
CITY OF ROSEMOUNT
SUMMARY OF PASSED ADJUSTING JOURNAL ENTRIES
DECEMBER 31, 2007
Financial Statements Effect
Increase (Decrease) to Financial Statement Total
Excess of
Total Total Revenues over
Assets Liabilities Expenditures
Governmental Activities 131,152 26,822 104,330
Business -Type Activities 26,399 5,522 20,876
General Fund 14,893 12,693 2,200
Debt Service 37,001 37,001
Capital Projects 49,198 49,198
Water Utility 68,813 759 68,054
Sewer Utility 37,916 759 37,158
Storm Water Utility 39,237 270 38,967
Remaining Funds 57,455 434 57,022
COMPREHENSIVE
ANNUAL
FINANCIAL REPORT
FOR THE YEAR ENDED DECEMBER 31, 2007
4 ROSEMOUNT
MINNESOTA
CITY OF ROSEMOUNT, MINNESOTA
CITY OF ROSEMOUNT, MINNESOTA
COMPREHENSIVE ANNUAL FINANCIAL REPORT
FOR THE YEAR ENDED DECEMBER 31, 2007
PREPARED BY THE DEPARTMENTS OF
ADMINISTRATION AND FINANCE
JAMES D. VERBRUGGE, City Administrator
JEFFREY A. MAY, Finance Director
CITY OF ROSEMOUNT
COMPREHENSIVE ANNUAL FINANCIAL REPORT
December 31, 2007
TABLE OF CONTENTS
Page
INTRODUCTORY SECTION
Letter of Transmittal v
GFOA Certificate of Achievement xi
Organizational Chart xii
List of Elected and Appointed Officials xiii
FINANCIAL SECTION
Independent Auditors' Report 1
Management's Discussion and Analysis 2 10
Basic Financial Statements:
Government -wide Financial Statements:
Statement of Net Assets 11
Statement of Activities 12
Fund Financial Statements:
Balance Sheet Governmental Funds 13
Statement 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 56
Required Supplementary Information:
Schedule of Revenues Compared to Budget (Budgetary Basis) Budget and
Actual General Fund 57
Schedule of Expenditures and Other Uses (Budgetary Basis) Budget and
Actual General Fund 58
Notes to Required Supplementary Information 59
Supplementary Information:
Combining and Individual Fund Statements and Schedules:
Combining Balance Sheet Nonmajor Governmental Funds 60
Combining Statement of Revenues, Expenditures and Changes in
Fund Balances Nonmajor Governmental Funds 61
Schedules of Revenues, Expenditures and Changes in Fund Balances (Budgetary Basis)
Budget and Actual:
Building CIP Capital Project Fund 62
Street CIP Capital Project Fund 63
Equipment CIP Capital Project Fund 64
Schedule of Changes in Assets and Liabilities M.A.A.G. Agency Fund 65
CITY OF ROSEMOUNT
COMPREHENSIVE ANNUAL FINANCIAL REPORT
December 31, 2007
TABLE OF CONTENTS
STATISTICAL SECTION (Unaudited)
Net Assets by Component 67
Changes in Net Assets 68
Fund Balances, Governmental Funds 70
Changes in Fund Balances, Governmental Funds 71
Assessed Value (or Tax Capacity) and Estimated Market Value of
All Taxable Property 72
Property Tax Rates All Direct and Overlapping Governmental Units 73
Principal Property Tax Payers 74
Property Tax Levies and Collections 75
Ratios of Outstanding Debt by Type 76
Ratios of Net General Bonded Debt Outstanding 77
Direct and Overlapping Governmental Activities Debt 78
Legal Debt Margin Calculation 79
Pledged Revenue Coverage 80
Demographic and Economic Statistics 81
Principal Employers 82
Full- Time /Permanent Part -Time City Government Employees by
Function /Program 83
Operating Indicators by Function /Program 84
Capital Asset Statistics by Function /Program 85
4 ROSEMOUNT
May 15, 2008
To the Honorable Mayor, Council Members, and the Citizens of the City of Rosemount:
MINNESOTA
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, 2007.
This report consists of management's representations concerning the finances of the City.
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 Rosemount's 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, 2007, 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 by
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,
2007, 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.
SPIRIT OF PRIDE AND PROGRESS
Rosemount City Hall 2875 145th StrQ/et West Rosemount, MN 55068 -4997
651-423-4411 TDD /TTY 651-423-6219 Fax 651-423-5203
www.ci.rosemount.mn.us
Profile of the Government
The City was established as a municipal corporation in 1858, and became a statutory City in
1974. The City has a Mayor Council form of government, with the four Council members being
elected to overlapping four -year terms of office and the Mayor serving a four -year term
coinciding with the terms of two of the Council members. This term for the Mayor was a change
instituted in 1996. Prior to that, the Mayor was elected every two years. The City Council is
responsible, among other things, for passing ordinances, adopting the budget, appointing
committees and hiring the City's chief administrative officer. The City's chief administrative
officer is the City Administrator, who is appointed by and serves at the discretion of the City
Council. The City Administrator is responsible for carrying out the policies and ordinances of the
City Council, for overseeing the day -to -day operations of the City and for appointing the heads of
the City's various departments, with the City Council's final approval.
The City of Rosemount is a growing southern suburb in the Minneapolis /St. Paul metropolitan
area, located in Dakota County. The City encompasses approximately 36 square miles. The
City is one of the fastest growing communities in the seven county Minneapolis /St. Paul
metropolitan area as demonstrated by the following population trend:
vi
Population Percent
Population Increase Increase
2007 Estimate 22,397 7,778 53%
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 102 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. There is over 500 acres of
industrial and commercially zoned property zoned and ready for development. In addition, the
Council recently reguided property in the City's Comprehensive Land Use Plan and expanded
the Municipal Service Area (MUSA) to allow almost 1000 acres of additional commercial and
industrial development located in the central portion of the community; adjoining County Road
42, a principal arterial and surrounding the County Road 42 /State Highway 52 interchange. 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
June 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 and adoption of a preliminary levy by September 15 The council is required
to hold a public hearing on the proposed budget and to adopt a final budget and levy by no later
than December 20 th prior to the close of the City's fiscal year.
The appropriated budget is prepared by fund, department and function. The City's department
heads may make transfers of appropriations within a department; transfers of appropriation
between departments require approval of the City Council. Budget -to- actual comparisons are
provided in this report for each individual governmental fund for which an appropriated annual
budget has been adopted. For the general fund, this comparison is presented on pages 57 -59
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 a significant portion of the community is currently
undeveloped. The eastern two thirds of the City is currently agricultural with the western one
third having urban development. The rural areas were the subject of a year -long study that
resulted in expansion of the City's Urban Service Area. With that change additional urban
growth is expected, continuing the development pattern experienced north of County Road 42,
up to State Highway 52. The fifteen largest taxpayers comprise a mix of residential, industrial,
commercial and utilities that represent approximately 16.1% 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. 2007 labor force numbers were 2,924,237;
1,850,509; and 233,307 respectively with unemployment rates of 4.9 4.5% and 4.3% to match.
These figures compare quite favorably with national figures.
Community leadership has preserved 430 beautiful acres of land for 26 parks. Residents can
enjoy a round of golf on a 27 -hole public course. Bordered by the scenic Mississippi River,
Rosemount also contains 270 acres of the Spring Lake Regional Park Preserve. Rosemount's
Community Center, a part of the Army National Guard's regional headquarters, provides a variety
of indoor recreation opportunities and meeting spaces, including an ice arena, gymnasium,
auditorium and banquet facility.
Given the underlying strength of the economy in the seven county metropolitan area, the
diversification of tax and employment bases and Rosemount's desirable location, the future
outlook is very optimistic.
Long -term financial planning. Growth and development is guided by the City's adopted
Comprehensive Land Use Plan. Recently, in July 2005, the Council approved a major
amendment bringing 2000 acres into the Municipal Urban Service Area (MUSA) and providing an
inventory of land for residential, commercial and industrial. The update was in recognition of the
faster pace of residential growth experienced in the City over the last several years. The
amendment continues to promote orderly development and growth which will perpetuate a sound
tax base.
Other factors. New housing starts, consistent with the regional economy, were down from
previous years at 143 new units. The new starts reflect a combination of attached and detached
single family units with 26 single family homes and 117 multi family units. Commercial, industrial
and institutional building remained relatively strong with building valuation of $23,648,245,
approximately 1% higher than in 2006.
vii
In 2007 the City continued making progress on the adopted goal of Downtown Redevelopment.
The City entered into a Development Contract with Stonebridge Development and Acquisition
LLC for redevelopment of the Core Block East property. The project will be a mixed use project
with 106 rental units and 13,000 square feet of commercial space. Construction is expected to
begin in the spring of 2008. The City is also looking at a partnering relationship with the existing
American Legion to facilitate redevelopment of their block.
Residential development has decreased due to national and regional economic conditions. The
City has made sure there is an ample supply of land ready for development, located within the
Municipal Urban Service Area (MUSA) and within easy access of public utilities. The City
granted preliminary plat approval for a 290 acre development in the central area of the
community which includes 50 acres of commercial property and approximately 580 residential
units.
Construction began on Well #15, the City's 9 th well located in the Meadows of Bloomfield
neighborhood. This well is scheduled to go online in 2009. Construction on the Bacardi Water
Tower, Well House #14 and Fire Station #2 was completed in 2006 and all three were brought
online early in 2007. Final paving, striping and street signs were installed on Bonaire Path,
completing the project that was initiated in 2005 with the turnback of County Road 38. Sanitary
and storm sewer improvements were made at 11 locations throughout the City, including
Rosewood Estates, Twin Puddles, Shannon Pond, Crosscroft Pond, and the Koch Trail Bridge
and Erickson Pond outlet.
Construction was completed on the Crosscroft 3` Addition, Glendalough 7 th Addition and JJT
Business Park developments. Construction began on the Rosemount Family Housing project,
located on the northwest corner of Connemara Trail and Trunk Highway 3. Flint Hills Resources
funded a utility project which extended sewer and watermain to provide service to existing and
future buildings within the refinery.
The 2007 Pavement Management Program covered .75 miles of streets, including complete
reconstruction on Camero Lane and Cambrian Avenue, and complete reconstruction to an urban
section on Biscayne Way, adding curb, gutter and storm sewer.
The Public Works /Engineering Department expanded its use of CarteGraph in 2007 to include
task tracking, which automatically generates the bi- weekly time sheets. We also implemented
mobile applications for SIGNview, SEWERview and VERSAview so department staff can
efficiently access and modify information in the field.
The Police Department provides comprehensive law enforcement services to the community. By
working with residents and businesses, the Department strives to maintain a safe environment.
Specific efforts of the Department in 2007 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. After becoming more familiar with area issues, it is expected that officers will
develop plans to address crime or livability issues within their neighborhood.
Community Education and Outreach Programs
Drug Abuse Resistance and Education (D.A.R.E.) An officer taught students at
three Rosemount schools. About 250 fifth grade students graduated from the
program in 2007.
National Night Out Police and fire officials, along with City Council members, visited
neighborhoods throughout the community on the first Tuesday of August as part of
this nationwide event. The event continues to grow each year.
viii
Child Safety Seat Clinics and Checks Several officers are specially trained in the
proper installation and use of child restraint seats. Residents, often new parents,
make appointments to have their seats checked by the officers.
Presentations on emergency planning and readiness were made to several groups in
2007.
The Departments with Dakota County law enforcement agencies to provide services in a
more effective and efficient manner. This includes participation on a joint tactical team, an
incident management team and a drug task force.
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 investments ranged from 1 month to 15 years.
Risk management. The City is exposed to various risks of Toss 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.
ix
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, 2006.
This was the eleventh consecutive year that the City has achieved this prestigious award. In
order to be awarded a Certificate of Achievement, a government must publish an easily readable
and efficiently organized comprehensive annual financial report. This report must satisfy both
generally accepted accounting principles and applicable legal requirements.
A Certificate of Achievement is valid for a period of one year only. We believe that our current
comprehensive annual financial report continues to meet the Certificate of Achievement
Program's requirements and we are submitting it to the GFOA to determine its eligibility for
another certificate.
The preparation of this report on a timely basis could not have been accomplished without the
efficient and dedicated services of the Finance and Administration Departments. We would like
to express our appreciation to all members of City staff who assisted and contributed to the
preparation of this report. We would also like to express our appreciation to the Mayor and the
members of the City Council for their interest and support in planning and conducting the
financial operations of the City in a responsible and progressive manner.
Respectfully submitted,
Jeffrey A. ay
Finance Director
x
Certificate of
Achievement
for Excellence
in Financial
Reporting
Presented to
City of Rosemount
Minnesota
For its Comprehensive Annual
Financial Report
for the Fiscal Year Ended
December 31, 2006
A Certificate of Achievement for Excellence in Financial
Reporting is presented by the Government Finance Officers
Association of the United States and Canada to
government units and public employee retirement
systems whose comprehensive annual fmancial
reports (CAFRs) achieve the highest
standards in government accounting
and financial reporting.
x i
President
ofe0A04,
Executive Director
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ELECTED OFFICIALS:
APPOINTED OFFICIALS:
Mayor Bill Droste
Councilmember Mike Baxter
Councilmember Phillip Sterner
Councilmember Kim Shoe Corrigan
Councilmember Mark DeBettignies
City Administrator
Finance Director
Assistant City Administrator
City Engineer
Community Development Director
Police Chief
Fire Chief
Parks and Recreation Director
CONSULTANTS AND ADVISORS:
Legal
Auditing
Fiscal
Engineering
CITY OF ROSEMOUNT
CITY OFFICIALS
Year Ended December 31, 2006
Term of Office
Four Years
Four Years
Four Years
Four Years
Four Years
James D. Verbrugge
Jeffrey A. May
Emmy Foster
Andrew Brotzler
Kim Lindquist
Gary D. Kalstabakken
Scott W. Aker
Dan Schultz
Term Expires
December 31, 2010
December 31, 2008
December 31, 2008
December 31, 2010
December 31, 2010
Kennedy Graven
Fluegel Moynihan, P.A.
Briggs Morgan
Virchow, Krause Company, LLP
Springsted, Inc.
Ehlers Associates, Inc.
Bonestroo, Rosene, Anderlik Associates
Short- Elliot- Hendrickson, Inc.
WSB Associates
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lea
Virchow Krause
&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, 2007, 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 Rosemount's
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 2006 financial statements and, in our
report dated May 25, 2007, we expressed unqualified opinions on the respective financial statements of the
governmental activities, the business -type activities, 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 all material respects, the respective
financial position of the governmental activities, the business type activities, each major fund, and the aggregate
remaining fund information of the City of Rosemount, Minnesota, as of December 31, 2007, and the respective
changes in financial position and, where applicable, cash flows 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 57 through 59 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 measurement and presentation of the
required supplementary information. However, we did not audit the information and express no opinion on it.
Our audit was conducted for the purpose of forming opinions on the financial statements that collectively comprise
the City of Rosemount's 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.
Minneapolis, Minnesota
May 15, 2008
Virchow, Krause Company, LLP
Certified Public Accountants Consultants An Independent Member of Baker Tilly International
Page 1
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Management's Discussion and Analysis
As management of the City of Rosemount (the City), we offer readers of the City's financial statements this
narrative overview and analysis of the financial activities of the City for the fiscal year ended December 31,
2007. We encourage readers to consider the information presented here in conjunction with the City's financial
statements following this section.
Financial Highlights
The assets of the City exceeded it's liabilities at the close of the most recent fiscal year by
$165,012,716 (net assets). Of this amount, $23,780,586 (unrestricted net assets) may be used to meet
the government's ongoing obligations to citizens and creditors.
The City's total net assets increased by $8,512,237. Most of this increase is attributable to cash
contributions from developers.
At year end, unreserved fund balance for the general fund, net of $709,204 designated for compensated
absences, was $5,747,445, or 55 percent of the total general fund expenditures budgeted for the
upcoming year. Comparison of this balance to prior years' balances is illustrated on the table on page 8.
The City's total debt decreased by $2,725,000 (9 percent) during the current year. The reason for this
decrease was that there were two new debt issuances, offset by scheduled payments on existing debt
and pay off of one debt issuance in the current year.
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
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 all or a significant portion of their costs through user fees and charges (business -type activities). The
governmental activities of the City include general government, public safety, public works, recreation, and
community development. The business -type activities of the City include water, sewer, storm water and an ice
arena.
The government -wide financial statements include not only the City itself, but also a legally separate port
authority, which functions as the economic development arm of the City, and therefore has been blended in with
the primary government.
The government -wide financial statements can be found on pages 11 -12 of this report.
Page 2
Fund financial statements. A fund is a grouping of related accounts that is used to maintain control over
resources that have been segregated for specific activities or objectives. The City, like other state and local
governments, uses fund accounting to ensure and demonstrate compliance with finance related legal
requirements. All of the funds of the City can be divided into three categories: governmental funds, proprietary
funds, and fiduciary funds.
Governmental funds. Governmental funds are used to account for essentially the same functions reported as
governmental activities in the government -wide financial statements. However, unlike the government -wide
financial statements, governmental fund financial statements focus on the near -term inflows and outflows of
spendable resources, as well as on balances of spendable resources available at the end of the fiscal year.
Such information may be useful in evaluating a government's near -term financing requirements.
Because the focus of governmental funds is narrower than that of the government -wide financial statements, it
is useful to compare the information presented for governmental funds with similar information presented for
governmental activities in the government -wide financial statements. By doing so, readers may better
understand the long -term impact of the government's near -term financing decisions. Both the governmental fund
balance sheet and governmental fund statement of revenues, expenditures, and changes in fund balances
provide a reconciliation to facilitate this comparison between governmental funds and governmental activities.
The City maintains thirteen 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, capital project fund, and the Port Authority TIF
fund all of which are considered major funds. Data from the five 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 statements because the
resources of those funds are not available to support the City's own programs.
The City had one fiduciary fund for the year ended December 31, 2007.
Page 3
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 -56 of this report.
Other information. The combining statements referred to earlier in connection with nonmajor governmental
funds are presented following the basic financial statements. Combining and individual fund statements and
schedules can be found on pages 60 -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 $165,012,716 at the close of the most recent fiscal year.
The largest portion of the City's net assets (76 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.
Current and other assets
Capital assets
Total assets
Long -term liabilities outstanding
Other liabilities
Total liabilities
Net assets:
Invested in capital assets,
net of related debt
Restricted
Unrestricted
Total net assets
Governmental Business -Type
Activities Activities
20,191,134
58,213,061
78,404,195
19,781,387
1,142,858
20,924,245
39,140,878
8,736,586
City of Rosemount's Net Assets
21,891,567
94,759,391
116,650,958
8,679,903
438,289
9,118,192
2007 Governmental Business -Type 2006
Totals
42,082,701
152,972,452
195, 055,153
28,461,290
1,581,147
30,042,437
Activities Activities Totals
21,204,790
56,406,959
77,611,749
22, 826, 544
1,918,332
24, 744, 876
21,730,636 42,935,426
90, 562, 887 146, 969, 846
112, 293, 523 189, 905, 272
8,248,402 31,074,946
411,515 2,329,847
8,659,917 33,404,793
86,225,033 125,365,911 34,221,147 82,445,638 116,666,785
8,736,586 7,554,872 8,554,984 16,109,856
9,602,486 21,307,733 30,910,219 11,090,854 12,632,984 23,723,838
57,479,950 107,532,766 165,012,716 52,866,873 103,633,606 156,500,479
An additional portion of the City's net assets (10 percent) represents resources that are subject to external
restrictions on how they may be used. The remaining balance of unrestricted net assets ($23,780,586) 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.
Page 4
Governmental activities. Governmental activities increased the City's net assets by $4,613,077, accounting for
54 percent of the total growth in the government's net assets.
Business -type activities. Business -type activities increased the City's net assets by $3,899,160, accounting
for 46 percent of the total growth in the government's net assets.
Elements of these changes are as follows:
City's Changes in Net Assets
Business- Business
Governmental Type 2007 Governmental Type
Activities Activities Totals Activities Activities
2006
Totals
Revenues:
Program revenues:
Charges for services 2,738,615 5,200,415 7,939,030 2,559,557 5,358,115 7,917,672
Operating grants and contributions 1,220,193 1,220,193 427,714 427,714
Capital grants and contributions 3,057,270 135,323 3,192,593 5,228,957 198,711 5,427,668
General revenues:
Property taxes 10,665,543 10,665,543 9,227,108 9,227,108
Other taxes 201,446 201,446 184,868 184,868
Investment income 967,337 1,102,729 2,070,066 1,064,315 943,911 2,008,226
Other 2,478,263 2,478,263 131,352 131,352 'K
Total revenues 21,328,667 6,438,467 27,767,134 18,823,871 6,500,737 25,324,608
Expenses:
General government 2,610,367 2,610,367 2,722,728 2,722,728
Public safety 3,293,615 3,293,615 2,928,783 2,928,783
Public works 4,974,625 4,974,625 7,724,300 7,724,300
Recreation 1,386,322 1,386,322 1,257,556 1,257,556
Community development 9,677 9,677 342 342
Interest on long -term debt 841,108 841,108 921,318 921,318
Water 2,366,263 2,366,263 1,603,391 1,603,391
Sewer 2,059,411 2,059,411 1,913,071 1,913,071
Storm water 1,245,492 1,245,492 916,557 916,557
Arena 468,017 468,017 457,897 457,897 k
Total expenses 13,115,714 6,139,183 19,254,897 15,555,027 4,890,916 20,445,943
Increase in net assets
before transfers 8,212,953 299,284 8,512,237 3,268,844 1,609,821 4,878,665
Transfers (3,599,876) 3,599,876 (5,169,779) 5,169,779
Increase /(decrease) in net assets 4,613,077 3,899,160 8,512,237 (1,900,935) 6,779,600 4,878,665
Net assets Beginning of Year 52,866,873 103,633,606 156,500,479 54,767,808 96,854,006 151,621,814
Net assets End of Year 57,479,950 107,532,766 165,012,716 52,866,873 103,633,606 156,500,479
Page 5
5
4.5
4
3.5
3
Millions 2.5
2
1.5
1
0.5
0
General Govemment
Expenses and Program Revenues Governmental Activities
Public Safety
Public Works
Recreation
Community
Development
Revenues by Source Governmental Activities
Interest on long -term
debt
Expenses
Revenue
Investment income' and
miscellaneous
21.5
Fines and forfeitures
0.6
Public charges for
services
9.6%
Intergovernmental
5.8%
Page 6
Millions
Expenses and Program Revenues Business -Type Activities
Water
Investment income.
15.1%
Intergovernmental
0.1%
Special assessments
2i%
Connection fees
19.8%
Sewer
Financial Analysis of the Government's Funds
Storm water
Revenues by Source Business -Type Activities
Surcharges and penalties
4.5%
Water meters
1.0%
Ice Arena
Charges for services
57.4%
Expenses
Revenue
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
As of the end of the current fiscal year, the City's governmental funds reported combined ending fund balances
of $15,925,680, a decrease of $361,055 in comparison with the prior year. Approximately 50 percent of this total
amount ($7,921,210) constitutes unreserved fund balance, which is available for spending at the government's
discretion. The remainder of the fund balance is reserved to indicate that it is not available for new spending
because it has already been committed to 1) liquidate contracts and purchase orders of the prior year
($797,993), 2) pay debt service ($7,180,264), and 3) prepaid items $26,213.
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 $6,465,616, while total fund balance reached $7,049,603. 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
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 4,511,547 53%
2006 8,516,300 4,806,577 52%
2007 9,181,100 5,747,445 55%
2008 10,574,900
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 $1,018,307. The
increase was intentional as the City has determined, through the adoption of a formal Fund Balance Policy, it
would like to maintain a maximum unreserved fund balance of 55 percent of the next general fund operating
expenditure budget. Forty to fifty percent normally provides adequate working capital to finance general fund
operations until property taxes and state aids are received. The desired 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, 2007, 89 percent of the unreserved fund balance of the general fund has been designated
to meet working capital needs and 11 percent has been designated to cover the compensated absences liability.
The debt service fund balance decreased by $389,984 due to large principal and interest payments with most of
the special assessment payments collected in prior years. The capital projects fund balance decreased by
$686,756 due to a fall off of developer contributions as development slowed here as it did nationally.
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 $12,387,250 while the
arena fund had a net deficit of $33,282. The growth in total net assets for the public utilities funds was
$3,897,173 and the increase in total net assets for the arena fund was $1,987.
General Fund Budgetary Highlights
There were no significant variances between final budgeted revenues and actual amounts. In the area of
licenses and permits the City did not experience a surplus this year, as in years past due to a slowdown in
growth reflected regionally and nationally as well. Other revenue areas experienced small surpluses and deficits
that led to the final surplus amount. Overall, actual expenditures were less than budgeted for the General Fund
by approximately 3 Parks and recreation expenditures exceeded budgeted amounts by less than 2% and the
fire department exceeded budgeted amounts by 8% due to unanticipated salary and operating expenses.
Page 8
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, 2007, amounts to $152,972,452 (net of accumulated depreciation). This investment in capital
assets includes land, buildings and structures, machinery and equipment, water, sewer, and storm water
systems, infrastructure and construction in progress.
Major capital assets events during the current fiscal year included the following:
Of the capital asset additions totaling $10,256,554 for the year, developers paid for approximately
$2,515,000 of them.
Land
Land improvements
Buildings
Machinery and equipment
Mains and lines
Infrastructure
Construction in progress
Total capital assets
City of Rosemount's Capital Assets
(net of depreciation)
Governmental
Activities
1 0,115,722
462,625
12,485,114
3,164,685
30,818,902
1,166,013
58,213,061
Business -Type
Activities
1,955,640
8,579,388
1,433,874
81,416,859
1,373,630
94,759,391
Totals
12, 071, 362
462,625
21,064,502
4,598,559
81,416,859
30,818,902
2,539,642
152,972,452
Additional information on the City's capital assets can be found in Note IV.C. on pages 39 -41 of this report.
Long -term debt. At the end of the current fiscal year, the City had total bonded debt outstanding of
$27,640,000 (including debt recorded in the Port Authority). Of this amount, $9,705,000 was for general
obligation improvement debt which has financed special assessment construction as part the continuing
development within the City. An additional $3,585,000 was general obligation debt issued by the Port Authority
which financed the City's economic development and redevelopment programs. Another $8,555,000 was
general obligation revenue bond debt issued to add to and improve the water and storm water utility systems
within the City. The remaining $4,030,000 was general obligation and general obligation refunding debt. In
addition, the City had $1,765,000 of equipment certificates outstanding at December 31, 2007.
The City's total debt decreased by $2,725,000 or 9 percent during the current fiscal year. The reason for this
decrease was that there were two new debt issuances, offset by scheduled payments on existing debt and
payoff of one debt issuance in the current year.
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 $43,715,618. Of
the City's $27,640,000 in outstanding general obligation debt at the current fiscal year end, $5,085,630 is
subject to the restrictions placed by state statute.
The City received a bond rating upgrade from Al to Aa 3 in 2007. These excellent ratings have had a positive
effect on the sale of the City's bonds.
Additional information on the City's Tong -term debt can be found in Note IV.E. on pages 44 -46 of this report.
Page 9
Economic Factors
Dakota County's unemployment rate ended the year at 4.3 percent, which compares favorably with the
state unemployment rate of 4.9 percent, and the national unemployment rate of 4.8 percent.
City building permits were slightly lower in both quantity and value in 2007, as compared to 2006. A
total of 1,368 permits with a total valuation of $63,085,633 were issued in 2007.
Requests for Information
This financial report is designed to provide a general overview of the City's finances for all those with an interest
in the government's finances. Questions concerning any of the information provided in this report or requests for
additional information should be addressed to the Finance Director, City of Rosemount, 2875 145 Street West,
Rosemount, Minnesota 55068 -4997.
Page 10
twg
ASSETS
Cash and investments
Receivables (net of allowance for uncollectibles)
Taxes
Delinquent taxes
Interest
Accounts
Loans
Special assessments
Due from other governmental units
Internal balances
Prepaid items
Other assets
Capital assets:
Land
Construction in progress
Land improvements
Buildings
Machinery and equipment
Infrastructure
Less: accumulated depreciation
Total Assets
LIABILITIES
Accounts payable
Accrued payroll and payroll taxes
Other accrued liabilities and deposits
Noncurrent liabilities:
Due within one year
Due in more than one year
Total Liabilities
NET ASSETS
Invested in capital assets, net of related debt
Restricted for debt service
Unrestricted
Total Net Assets
CITY OF ROSEMOUNT
STATEMENT OF NET ASSETS
December 31, 2007
(With Summarized Information for December 31, 2006)
Governmental
Activities
20,598,678
484,711
163,717
96,926
2,409,860
9,482
(3,690,401)
104,500
13,661
10,115,722
1,166,013
1,057,403
15,355,204
7,827,281
37, 961,588
(15,270,150)
78,404,195
39,140,878
8,736,586
9,602,486
Business
Type
Activities
250
669,561
263,867
20,175
3,690,401
109,541
See accompanying notes to financial statements.
17,137,772 37,736,450
1,955,640
1,373,630
10,162,263
2,669,176
115,689,583
(37,090,901)
116,650,958
86,225,033
21,307,733
57,479,950 107,532,766
2007
484,711
163,717
250
766,487
2,673,727
29,657
214,041
13,661
12,071,362
2,539,643
1,057,403
25,517,467
10,496,457
153,651,171
(52,361,051)
195,055,153
125,365,911
8,736,586
30,910,219
165,012,716
Totals
2006
38,633,087
431,864
129,780
644,380
499,021
2,384,356
32,154
180,784
9,693,699
14,449,973
1,059,879
22,679,116
10,072,000
138,201,402
(49,186,223)
189,905,272
558,524 266,324 824,848 1,494,416
169,556 35,980 205,536 189,235
414,778 135,985 550,763 646,196
3,275,418 1,774,864 5,050,282 3,790,505
16,505,969 6,905,039 23,411,008 27,284,441
20,924,245 9,118,192 30,042,437 33,404,793
116,666,785
16,109,856
23,723,838
156,500,479
Page 11
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CITY OF ROSEMOUNT
BALANCE SHEET GOVERNMENTAL FUNDS
December 31, 2007
Port Other Total
Authority Governmental Governmental
General Debt Service Capital Projects TIF Funds Funds
ASSETS
Cash and investments 7,124,077 7,167,090 5,296,237 168,516 171,444 19,927,364
Receivables from:
Taxes 647,420 1,008 648,428
Accounts 72,444 24,482 96,926
Loans
Special assessments 55,272 1,748,558 544,068 2,347,898
Delinquent special assessments 726 55,466 5,771 61,963
Due from other funds 12,228 12,228
Due from other governmental units 9,482 9,482
Prepaid items 25,797 416 26,213
Total assets 7,947,446 8,971,114 5,870,558 169,524 171,860 23,130,502
LIABILITIES AND FUND BALANCES
Liabilities
Accounts payable 275,504 141,418 36,937 8,072 461,931
Accrued payroll and payroll taxes 169,556 169,556
Deposits payable 180,250 180,250
Contracts payable 79,055 79,055
Deferred revenue 272,533 1,790,850 548,018 2,611,401
Advances from other funds 199,354 3,503,275 3,702,629
Total liabilities 897,843 1,790,850 967,845 3,540,212 8,072 7,204,822
Fund Balances
Reserved for:
Debt service 7,180,264 7,180,264
Encumbrances 558,190 239,803 797,993
Prepaid items 25,797 416 26,213
Unreserved and designated, reported in:
General fund 6,456,649 6,456,649
Capital projects 4,662,910 4,662,910
Special revenue funds 48,791 48,791
Unreserved and undesignated (deficit), reported in:
General fund 8,967 8,967
Special revenue funds (3,370,688) 114,581 (3,256,107)
Total fund balances 7,049,603 7,180,264 4,902,713 (3,370,688) 163,788 15,925,680
Total liabilities and fund balances 7,947,446 8 5,870,558 169,524 171,860
Amounts reported for governmental activities in the statement of net assets are different because:
Capital assets used in govemmental funds are not financial resources and, therefore, are not reported in the funds. 58,213,061
Some receivables that are not currently available are reported as deferred revenue in the fund financial
statements but are recognized as revenue when eamed in the govemment -wide statements. 2,611,401
Internal service funds are reported in the statement of net assets as govemmental activities. 732,062
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. (20,002,254)
NET ASSETS OF GOVERNMENTAL ACTIVITIES 57,479,950
See accompanying notes to financial statements.
Page 13
REVENUES
Taxes
Intergovernmental
Public charges for services
Licenses and permits
Fines and forfeitures
Special assessments
Investment income and miscellaneous
Total Revenues
EXPENDITURES
Current:
General government
Public safety
Public works
Parks and recreation
Capital Outlay
Debt Service:
Principal retirement
Interest and fiscal charges
Total Expenditures
Excess (deficiency) of revenues
over expenditures
OTHER FINANCING SOURCES (USES)
Issuance of long -term debt
Payment to escrow agent
Sale of capital assets
Transfers in
Transfers out
Total Other Financing Sources
Net Change in Fund Balance
FUND BALANCES (DEFICIT) Beginning
7,204,642
296,941
1,168,194
650,634
120,093
12,135
460,192
9,912,831
2,212,983
2,873,840
2,425,619
1,152,615
FUND BALANCES (DEFICIT) ENDING 7,049,603
CITY OF ROSEMOUNT
STATEMENT OF REVENUES, EXPENDITURES
AND CHANGES IN FUND BALANCES GOVERNMENTAL FUNDS
For the Year Ended December 31, 2007
Port
Authority
General Debt Service Capital Projects TIF
1,866,319
777
1,387,147
299,991
3,554,234
1,377,000
897,430
782,723
182,995
3,081,788
6,321,936
37,186
9,000 126,102
8,743,835
3,565,000 3,565,000
874,718 10,636 127,656 1,013,010
8,665,057 4,448,718 8,917,759 634,487 646,843 23,312,864
1,247,774 (894,484) (2,595,823) (399,355) (121,703) (2,763,591)
6,300 443,700 450,000
(1,800) (1,800)
19,005 19,005
88,969 500,000 1,531,831 2,120,800
(100,000) (85,469) (185,469)
(11,031) 504,500 1,909,067 2,402,536
1,236,743 (389,984) (686,756) (399,355) (121,703) (361,055)
5,812,860 7,570,248 5,589,469 (2,971,333) 285,491 16,286,735
7,180,264 4,902,713 (3,370,688) 163,788 15,925,680
See accompanying notes to financial statements.
159,030
76,102
235,132
Other Total
Governmental Governmental
Funds Funds
10,606,991
1,194, 371
16,972 1,967,889
650,634
120,870
1,582,277
508,168 4,426,241
525,140 20,549,273
89,898 78,003 2,380,884
2,137 2,913,163
7,793 2,568,514
1,152,615
416,933 558,910 9,719,678
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, 2007
Net change in fund balances total governmental funds (361,055)
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 9,719,678
Less: Some items reported as capital outlay but not capitalized (1,195,019)
Add: Contributed assets 542,700
Depreciation is reported in the government -wide statements (1,607,004)
Utility infrastructure constructed by capital projects funds is reported as a
transfer in the government -wide statements (5,535,206)
In the statement of activities, the gain or Toss ($100,042) on the disposal of
capital assets is reported. In the fund financial statements, proceeds from the sale
of capital assets ($19,005) are reported because the proceeds increase
financial resources (119,047)
Internal service funds are reported in the statement of activities. 13,976
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.
Issuing debt provides current financial resources to governmental funds, but issuing
debt increases long -term liabilities in the statement of net assets.
This is the amount of debt issued during the year.
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.
Governmental funds report the effect of issuance costs, premiums, discounts, and similar
items when debt is first issued, whereas these amounts are deferred and amortized in the
statement of activities.
(61,240)
(450,000)
3,565,000
12,290
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 (68,472)
Accrued interest on debt 156,476
CHANGE IN NET ASSETS OF GOVERNMENTAL ACTIVITIES 4,613,077
See accompanying notes to financial statements. Page 15
Total Assets
TOTAL NET ASSETS
CITY OF ROSEMOUNT
STATEMENT OF NET ASSETS PROPRIETARY FUNDS
December 31, 2007
Business -Type Activities Enterprise Funds
Storm Non -major
Water Sewer Water Arena
ASSETS
Current assets:
Cash and investments 8,041,791 3,806,942 5,289,039 17,137,772 671,314
Accrued interest receivable 250 250
Customer accounts receivable 273,702 260,004 135,855 669,561
Special assessments receivable 99,643 137,655 26,569 263,867
Due from other governments 20,175 20,175
Prepaid and other assets 29,804 72,793 3,094 3,850 109,541 78,288
Total current assets 8,444,940 4,277,394 5,454,807 24,025 18,201,166 749,602
Non current assets:
Advance to other funds 3,785,693 3,785,693
Property and equipment:
Land 789,704 1,165,936 1,955,640
Construction in progress 801,274 300,385 271,971 1,373,630
Buildings 6,241,186 401,414 1,119,763 2,399,900 10,162,263
Mains and lines 16,277,908 13,349,053 20,071,333 49,698,294
Other improvements 16,528,701 36,927,459 12,535,129 65,991,289
Machinery and equipment 1,561,261 655,411 355,812 96,692 2,669,176
Less accumulated depreciation (8,985,984) (22,466,065) (4,942,014) (696,838) (37,090,901)
Net property and equipment 33,214,050 29,167,657 30,577,930 1,799,754 94,759,391
Total non current assets 33,214,050 32,953,350 30,577,930 1,799,754 98,545,084
41,658,990 37,230,744 36,032,737 1,823,779 116,746,250 749,602
LIABILITIES
Current liabilities:
Accounts payable 168,076 45,463 36,321 16,464 266,324 17,540
Due to other funds 12,228 12,228
Accrued liabilities 12,932 11,108 4,342 7,598 35,980
Accrued interest 79,580 56,405 135,985
Current portion of long term obligations 480,525 25,525 1,258,726 10,088 1,774,864
Total current liabilities 741,113 82,096 1,355,794 46,378 2,225,381 17,540
Noncurrent liabilities:
Accrued compensated absences 27,651 27,651 9,450 10,929 75,681
General obligation debt 5,168,650 1,660,708 6,829,358
Advances from other funds 83,064 83,064
Total noncurrent liabilities 5,279,365 27,651 1,670,158 10,929 6,988,103
Total Liabilities 6,020,478 109,747 3,025,952 57,307 9,213,484 17,540
NET ASSETS
Invested in capital assets, net of related debt 27,590,400 29,167,657 27,667,222 1,799,754 86,225,033
Unrestricted (Deficit) 8,048,112 7,953,340 5,339,563 (33,282) 21,307,733 732,062
35,638,512 37,120,997 33,006,785 1,766,472 107,532,766 732,062
See accompanying notes to financial statements.
Totals
Governmental
Activities
Internal Service
Fund
Page 16
CITY OF ROSEMOUNT
STATEMENT OF REVENUES, EXPENSES AND CHANGES IN FUND
NET ASSETS PROPRIETARY FUNDS
For the Year Ended December 31, 2007
Business -Type Activities Enterprise Funds
Governmental
Activities
Storm Non -major Internal Service
Water Sewer Water Arena Totals Funds
OPERATING REVENUES
Charges for services 1,159,509 1,337,722 737,016 373,504 3,607,751
Water meters 65,604 65,604
Miscellaneous 26,743
Total Operating Revenues 1,225,113 1,337,722 737,016 373,504 3,673,355 26,743
OPERATING EXPENSES
Personnel services 415,679 407,566 153,062. 205,604 1,181,911
Supplies 182,461 29,305 7,956 11,689 231,411 2,653
Professional services and charges 72,347 31,682 225,944 24,042 354,015 28,000
Other services and charges 804,351 56,453 176,914 172,215 1,209,933 272,805
Metro sewer charges 721,350 721,350
Depreciation 669,014 808,623 535,456 54,467 2,067,560
Total Operating Expenses 2,143,852 2,054,979 1,099,332 468,017 5,766,180 303,458
Operating Loss (918,739) (717,257) (362,316) (94,513) (2,092,825) (276,715)
NONOPERATING REVENUES (EXPENSES)
Connection fees 603,023 326,258 312,967 1,242,248
Taxes 260,000
Special assessments 46,807 88,516 135,323
Intergovemmental 2,500 2,500 5,000
Investment income 335,927 357,381 252,067 945,375 30,691
Net increase in fair value of investment 58,503 60,326 38,525 157,354
Loss from disposal of capital assets (33,431) (33,431)
Surcharges and penalties 264,497 11,288 4,028 279,813
Interest expense and fiscal agent fees (188,980) (4,432) (146,160) (339,572)
Total Nonoperating Revenues 1,086,346 841,837 463,927 2,392,110 290,691
Income (loss) before contributions
and transfers
167,607 124,580 101,611 (94,513) 299,285 13,976
Capital contributions 1,933,925 2,443,309 1,157,972 5,535,206
Transfers in 75,305 100,000 175,305
Transfers out (943,587) (827,065) (336,484) (3,500) (2,110,636)
Change in Net Assets 1,157,945 1,740,824 998,404 1,987 3,899,160 13,976
TOTAL NET ASSETS Beginning
34,480,567 35,380,173 32,008,381 1,764,485 103,633,606 718,086
TOTAL NET ASSETS ENDING 35,638,512 37,120,997 33,006,785 1,766,472 107,532,766 732,062
See accompanying notes to financial statements.
Page 17
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ASSETS
Cash and investments
CITY OF ROSEMOUNT
STATEMENT OF NET ASSETS
FIDUCIARY FUND
December 31, 2007
M.A.A.G.
Agency
Fund
35,615
LIABILITIES
Due to M.A.A.G. 35,615
See accompanying notes to financial statements.
Page 20
CITY OF ROSEMOUNT
INDEX TO NOTES TO FINANCIAL STATEMENTS
December 31, 2007
NOTE Page
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. Assets, Liabilities, and Net Assets or Equity 27
1. Deposits and Investments 27
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. Prior Period Information 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. Deficit Balances 35
IV. Detailed Notes on All Funds 35
A. Deposits and Investments 35
B. Receivables 38
C. Capital Assets 39
D. Interfund Receivables /Payables and Transfers 41
E. Long -Term Obligations 44
F. Net Assets /Fund Balances 47
V. Other Information 50
A. Employees' Retirement System 50
B. Risk Management 54
C. Commitments and Contingencies 55
D. Joint Powers Debt Commitment 55
E. Subsequent Events 56
Page 21
NOTE 1 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
The City of Rosemount, Minnesota (the "City was formed and operates pursuant to applicable
Minnesota laws and statutes. The governing body consists of a five member City Council elected
at large by voters of the City. City Council members serve four -year staggered terms and the
mayor serves a four -year term coinciding with the terms of two of the Council members. Elections
take place every two years.
The accounting policies of the City conform to accounting principles generally accepted in the
United States of America, as applicable to governmental units. The accepted standard setting
body for establishing governmental accounting and financial reporting principles in the
Governmental Accounting Standards Board (GASB).
A. REPORTING ENTITY
This report includes all of the funds of the City of Rosemount. The reporting entity for the City
consists of (a) the primary government, (b) organizations for which the primary government is
financially accountable and (c) other organizations for which the nature and significance of their
relationship with the primary government are such that their exclusion would cause the reporting
entity's financial statements to be misleading or incomplete. A legally separate organization should
be reported as a component unit if the elected officials of the primary government are financially
accountable to the organization. The primary government is financially accountable if it appoints a
voting majority of the organization's governing body and (1) it is able to impose its will on that
organization or (2) there is a potential for the organization to provide specific financial benefits to
or burdens on the primary government. The primary government may be financially accountable if
an organization is fiscally dependent on the primary government.
A legally separate, tax exempt organization should be reported as a component unit of a reporting
entity if all of the following criteria are met: (1) the economic resources received or held by the
separate organization are entirely or almost entirely for the direct benefit of the primary
government, its component units, or its constituents; (2) the primary government is entitled to, or
has the ability to otherwise access, a majority of the economic resources received or held by the
separate organization; (3) the economic resources received or held by an individual organization
that the specific primary government, or its component units, is entitled to, or has the ability to
otherwise access, are significant to that primary government. Blended component units, although
legally separate entities, are, in substance, part of the government's operations and are reported
with similar funds of the primary government.
Blended Component Unit
Rosemount Port Authority
CITY OF ROSEMOUNT
NOTES TO FINANCIAL STATEMENTS
December 31, 2007
The Port Authority serves all the citizens of the government and is governed by a board comprised
of four of five of the government's elected council and three citizens appointed at large. The bond
issuance authorizations are approved by the government's council and the legal liability for the
general obligation portion of the Port Authority's debt remains with the government. The Port
Authority is reported in the special revenue fund and in the debt service fund. Separate financial
statements have not been prepared for the Rosemount Port Authority.
Page 22
CITY OF ROSEMOUNT
NOTES TO FINANCIAL STATEMENTS
December 31, 2007
NOTE 1 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (cont.)
B. GOVERNMENT -WIDE 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 except for fiduciary funds.
The statements distinguish between governmental and business -type activities. Governmental
activities generally are financed through taxes, intergovernmental revenues, and other
nonexchange revenues. Business -type activities are financed in whole or in part by fees charged
to external parties for goods or services.
The statement of activities demonstrates the degree to which the direct expenses of a given
function, or segment, are offset by program revenues. Direct expenses are those that are clearly
identifiable with a specific function or segment. The City does not allocate indirect expenses to
functions in the statement of activities. Program revenues include 1) charges to customers or
applicants who purchase, use or directly benefit from goods, services, or privileges provided by a
given function or segment, and 2) grants and contributions that are restricted to meeting the
operational or capital requirements of a particular function or segment. Taxes and other items not
included among program revenues are reported as general revenues. Internally dedicated
resources are reported as general revenues rather than as program revenues.
Fund Financial Statements
Financial statements of the reporting entity are organized into funds, each of which is considered
to be a separate accounting entity. Each fund is accounted for by providing a separate set of self
balancing accounts, which constitute its assets, liabilities, net assets /fund equity, revenues, and
expenditure /expenses.
Separate financial statements are provided for governmental funds, proprietary funds and
fiduciary funds, even though the latter are excluded from the government -wide financial
statements. Major individual governmental funds and major individual enterprise funds are
reported as separate columns in the fund financial statements.
Funds are organized as major funds or non -major funds within the governmental and proprietary
statements. An emphasis is placed on major funds within the governmental and proprietary
categories. A fund is considered major if it is the primary operating fund of the City or meets the
following criteria:
a. Total assets, 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 enterprise 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, 2007
NOTE 1 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (cont.)
B. GOVERNMENT -WIDE AND FUND FINANCIAL STATEMENTS (cont.)
Fund Financial Statements (cont.)
The City reports the following major governmental funds:
General Fund accounts for the City's primary operating activities. It is used to account for
all financial resources except those required to be accounted for in another fund.
Debt Service Fund accounts for resources accumulated and payments made for principal
and interest on long -term debt other than tax increment district 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 capital projects fund
consists of one primary fund and three separate internal funds maintained by the City.
Port Authority TIF Fund accounts for the activities of the City's Downtown Brockway TIF
District.
The City reports the following major enterprise funds:
Water Utility accounts for operations of the water system.
Sewer Utility accounts for operations of the sewer system.
Storm Water Utility accounts for operations of the storm water drainage system.
The City reports the following non -major governmental and enterprise funds:
Special Revenue Funds used to account for the proceeds of specific revenue sources
(other than major capital projects) that are legally restricted to expenditures for specified
purposes.
Tree Disease Grant Program Fund
Crime Reduction Project Fund
Fire Safety Education Fund
GIS Fund
Port Authority General Fund
Enterprise Funds may be used to report any activity for which a fee is charged to
external uses for goods or services, and must be used for activities which meet certain
debt or cost recovery criteria.
Arena Fund accounts for the activities of the City's ice arena operations.
Page 24
CITY OF ROSEMOUNT
NOTES TO FINANCIAL STATEMENTS
December 31, 2007
NOTE 1 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (cont.)
B. GOVERNMENT -WIDE AND FUND FINANCIAL STATEMENTS (cont.)
Fund Financial Statements (cont.)
In addition, the City reports the following fund types:
Internal service funds are used to account for the financing of goods and services
provided by one department or agency to other departments or agencies of the City on
a cost reimbursement basis.
Insurance Fund accumulates resources to pay deductibles and uninsured claims, and
pays for a majority of the general liability insurance and workers compensation insurance
premiums for the City.
Agency funds are used to account for assets held by the City in a trustee capacity or as
an agent for individuals, private organizations, and /or other governmental units.
M.A.A.G Fund funds are held on behalf of the Mutual Aid Assistance Group (M.A.A.G.)
which is a cooperative of various Dakota County police departments.
C. MEASUREMENT FOCUS, BASIS OF ACCOUNTING AND FINANCIAL 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. 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
NOTE 1 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (cont.)
C. MEASUREMENT Focus, BASIS OF ACCOUNTING AND FINANCIAL STATEMENT PRESENTATION
(cont.)
Fund Financial Statements
CITY OF ROSEMOUNT
NOTES TO FINANCIAL STATEMENTS
December 31, 2007
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 and fiduciary fund financial statements (other than agency funds) are reported using
the economic resources measurement focus and the accrual basis of accounting, as described
previously in this note. Agency funds follow the accrual basis of accounting, and do not have a
measurement focus.
Page 26
NOTE 1 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (cont.)
C. MEASUREMENT FOCUS, BASIS OF ACCOUNTING AND FINANCIAL STATEMENT PRESENTATION
(cont.)
Fund Financial Statements (cont.)
The enterprise 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. Special assessments are
recorded as receivables and contribution revenue when levied. Operating expenses for proprietary
funds include the cost of sales and services, administrative expenses, and depreciation on capital
assets. All revenues and expenses not meeting this definition are reported as nonoperating
revenues and expenses.
All Financial Statements
CITY OF ROSEMOUNT
NOTES TO FINANCIAL STATEMENTS
December 31, 2007
The preparation of financial statements in conformity with generally accepted accounting
principles requires management to make estimates and assumptions that affect the reported
amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of
the financial statements and the reported amounts of revenues and expenditures /expenses during
the reporting period. Actual results could differ from those estimates.
D. ASSETS, LIABILITIES, AND NET ASSETS OR EQUITY
1. Deposits and Investments
For purposes of the statement of cash flows, the City considers all highly liquid investments with
an initial maturity of three months or less when acquired to be cash equivalents.
Investment of City funds is restricted by state statutes. Available investments are limited to:
1. Direct obligations or obligations guaranteed by the United States or its agencies,
commercial paper, repurchase or reverse repurchase agreements with banks that are
members of the Federal Reserve System with capitalization exceeding $10,000,000, a
primary reporting dealer in U.S. Government Securities to the Federal Reserve Bank of New
York or certain Minnesota brokers /dealers.
2. General obligations of the State of Minnesota or any of its municipalities.
3. Bankers acceptances of United States banks eligible for purchase by the Federal Reserve
System.
4. Shares of investment companies registered under the Federal Investment Company Act of
1940 and whose only investments are direct obligations guaranteed by the United States or
its agencies.
Page 27
NOTE 1 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (cont.)
D. ASSETS, LIABILITIES, AND NET ASSETS OR EQUITY (cont.)
1. Deposits and Investments (cont.)
The City has adopted an investment policy. The policy contains the following guidelines:
Credit Risk The policy follows state statutes for allowable investments except that it
does not permit the purchase of shares of investment companies registered under the
Federal Investment Company Act of 1940 whose only investments are direct
obligations guaranteed by the United States or its agencies.
Concentration of Credit Risk The policy does not limit the amount the City may
invest in any one issuer.
Interest Rate Risk As a means of limiting its exposure to fair value losses arising
from rising interest rates, the City's investment policy limits the amount of investments
with maturities of more than five years to 35% of the City's total investment portfolio
(including certificates of deposit).
Investments that are Highly Sensitive to Interest Rate Changes The policy does
not address interest rate sensitivity.
Investments are stated at fair value, which is the amount at which an investment could be
exchanged in a current transaction between willing parties. Fair values are based on quoted
market prices. No investments are reported at amortized cost. Adjustments necessary to record
investments at fair value are recorded in the operating statement as increases or decreases in
investment income. Investment purchases are charged and maturities are deposited to the
consolidated bank account. The purpose of this consolidation is to reduce administrative costs
and to provide a single cash balance available for the maximization of investment earnings. Each
fund shares in the investment earnings according to its average cash and investment balances.
Cash is transferred from those funds with available cash resources to cover any negative cash
balances in other funds at year -end. The difference between the bank balance and carrying value
is due to outstanding checks and /or deposits in transit.
See Note IV.A. for further information.
2. Receivables
CITY OF ROSEMOUNT
NOTES TO FINANCIAL STATEMENTS
December 31, 2007
Property tax levies are set by the City Council in the fall each year and are certified to Dakota
County for collection in the following year. In Minnesota, counties act as collection agents for all
property taxes.
The County spreads all levies over taxable property. Such taxes become a lien on January 1 and
are recorded as receivables by the City at that date. Property taxes are accrued and recognized
as revenue in the year collectible, net of delinquencies.
Real property taxes may be paid by taxpayers in two equal installments on May 15 and October
15. Personal property taxes may be paid on February 28 and June 30. The County provides tax
settlements to the City five times per year, in January, April, June, July and December.
Page 28
NOTE 1 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (cont.)
D. ASSETS, LIABILITIES, AND NET ASSETS OR EQUITY (cont.)
2. Receivables (cont.)
CITY OF ROSEMOUNT
NOTES TO FINANCIAL STATEMENTS
December 31, 2007
Taxes which remain unpaid 60 days after year end are classified as delinquent taxes receivable
and are fully offset by deferred revenue because they are not known to be available to finance
current expenditures.
Special assessments are levied against the benefited properties for the assessable costs of
special assessments improvement projects in accordance with state statutes. The City usually
adopts the assessment rolls when the individual projects are complete. The assessments are
collectible over a term of years generally consistent with the term of years of the related bond
issue. Collection of annual installments (including interest) is handled by the County in the same
manner as property taxes. Property owners are allowed to prepay total future installments without
interest or prepayment penalties.
Special assessments receivable includes the following components:
Current amount collected by Dakota County.and not remitted to the City.
Delinquent amounts billed to property owners but not paid.
Deferred assessment installments, which will be billed to property owners in future
years.
Other assessments for which payment has been postponed based on council action.
Accounts receivable are considered to be 100% collectible.
During the course of operations, transactions occur between individual funds that may result in
amounts owed between funds. Short -term interfund loans are reported as "due to and from other
funds." Long -term interfund loans (noncurrent portion) are reported as "advances from and to
other funds." lnterfund 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. Inventories and Prepaid Items
Governmental fund inventory items are charged to expenditure accounts when purchased. Year-
end inventory was not significant. Proprietary fund inventories are generally used for construction
and for operation and maintenance work. They are not for resale. They are valued at cost based
on weighted average, and charged to construction and /or operation and maintenance expense
when used.
Certain payments to vendors reflect costs applicable to future accounting periods and are
recorded as prepaid items in both government -wide and fund financial statements.
Page 29
CITY OF ROSEMOUNT
NOTES TO FINANCIAL STATEMENTS
December 31, 2007
NOTE 1 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (cont.)
D. ASSETS, LIABILITIES, AND NET ASSETS OR EQUITY (cont.)
4. Capital Assets
Government Wide Statements
Capital assets, which include property, plant and equipment, are reported in the government -wide
financial statements. Capital assets are defined by the government as assets with an initial cost of
more than $5,000 for general capital assets and infrastructure assets, and an estimated useful life
in excess of one year. All capital assets are valued at historical cost or estimated historical cost if
actual amounts are unavailable. Donated capital assets are recorded at their estimated fair value
at the date of donation.
Prior to January 2004, 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. As of December 31, 2007, the
City has retroactively reported the road, parking lot and bridge network infrastructure acquired by
its governmental fund types.
Additions to and replacements of capital assets of business -type activities are recorded at original
cost, which includes material, labor, overhead, and an allowance for the cost of funds used during
construction when significant. For tax exempt debt, the amount of interest capitalized equals the
interest expense incurred during construction netted against any interest revenue from temporary
investment of borrowed fund proceeds. No interest was capitalized during the current year. The
cost of renewals and betterments relating to retirement units is added to plant accounts. The cost
of property replaced, retired or otherwise disposed of, is deducted from plant accounts and,
generally, together with removal costs Tess salvage, is charged to accumulated depreciation.
Page 30
NOTE 1 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (cont.)
D. ASSETS, LIABILITIES, AND NET ASSETS OR EQUITY (cont.)
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
CITY OF ROSEMOUNT
NOTES TO FINANCIAL STATEMENTS
December 31, 2007
Under terms of employment, employees are granted vacation, sick and comp time benefits in
varying amounts. These benefits are based upon union contracts and City actions as applicable.
Amounts carried forward for vacation and comp time accruals are governed by these contracts
and actions. Sick pay accruals may be carried forward indefinitely.
All vested vacation, sick leave and comp time pay is accrued when incurred in the government
wide and proprietary fund financial statements. A liability for these amounts is reported in
governmental funds only if they have matured, for example, as a result of employee resignations
and retirements, and are payable with expendable available resources.
Payments for vacation, sick and comp time leave will be made at rates in effect when the benefits
are used. Accumulated vacation, sick and comp time leave liabilities at December 31, 2007 are
determined on the basis of current salary rates and include salary related payments.
Page 31
NOTE 1 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (cont.)
D. ASSETS, LIABILITIES, AND NET ASSETS OR EQUITY (cont.)
7. Long -Term Obligations /Conduit Debt
CITY OF ROSEMOUNT
NOTES TO FINANCIAL STATEMENTS
December 31, 2007
All long -term obligations to be repaid from governmental and business -type resources are
reported as liabilities in the government -wide statements. The Tong -term obligations consist
primarily of notes and bonds payable, and accrued compensated absences.
Long -term obligations for governmental funds are not reported as liabilities in the fund financial
statements. The face value of debts (plus any premiums) are reported as other financing sources
and payments of principal and interest are reported as expenditures. The accounting in proprietary
funds is the same as it is in the government -wide statements.
For the government -wide statements and proprietary fund statements, bond premiums and
discounts are deferred and amortized over the life of the issue using the effective interest method.
Gains or losses on prior refundings are amortized over the remaining life of the old debt, or the life
of the new debt, whichever is shorter. The balance at year end for both premiums /discounts and
gains /losses, as applicable, is shown as an increase or decrease in the liability section of the
statement of net assets.
The City has approved the issuance of industrial revenue bonds (IRB) for the benefit of private
business enterprises. IRB's are secured by mortgages or revenue agreements on the associated
projects, and do not constitute indebtedness of the City. Accordingly, the bonds are not reported
as liabilities in the accompanying financial statements. At year end, the aggregate principal
amount for the five issues outstanding could not be determined; however, their original issue
amounts totaled $9,739,720.
8. 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
NOTE 1 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (cont.)
D. ASSETS, LIABILITIES, AND NET ASSETS OR EQUITY (cont.)
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 (including unspent bond proceeds) 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
10. Prior Period Information
CITY OF ROSEMOUNT
NOTES TO FINANCIAL STATEMENTS
December 31, 2007
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.
The basic financial statements include certain prior -year summarized comparative information in
total, but not at the level of detail required for a presentation in conformity with generally accepted
accounting principles. Accordingly, such information should be read in conjunction with the
government's financial statements for the year ended December 31, 2006, from which the
summarized information was derived.
Page 33
A. BUDGETARY INFORMATION
CITY OF ROSEMOUNT
NOTES TO FINANCIAL STATEMENTS
December 31, 2007
NOTE II RECONCILIATION OF GOVERNMENT -WIDE AND FUND FINANCIAL STATEMENTS
A. EXPLANATION OF CERTAIN DIFFERENCES BETWEEN THE GOVERNMENTAL FUND BALANCE SHEET
AND THE STATEMENT OF NET 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 explains that "Some liabilities,
including long -term debt, are not due and payable in the current period and, therefore, are not
reported in the funds The details of this $20,002,254 difference are as follows:
Long -term liabilities applicable to the City's governmental activities are not due and payable in the
current period, and accordingly, are not reported as fund liabilities. Interest on long -term debt is
not accrued in governmental funds, but rather is recognized as an expenditure when due. All
liabilities both current and long -term are reported in the statement of net assets.
Bonds and notes payable
Compensated absences
Accrued interest
Unamortized debt discount and issuance costs
Combined Adjustment for Long -Term Liabilities
NOTE III STEWARDSHIP, COMPLIANCE, AND ACCOUNTABILITY
19,085,000
709,204
234,528
(26,478)
20,002,254
Budgetary information is derived from the annual operating budget and is presented using the
same basis of accounting for each fund as described in Note I. C. with departures from generally
accepted accounting principles for encumbrances.
Annual budgets have been adopted for the general fund and the capital project fund that is
created by the following sub funds, Building CIP, Street CIP and Equipment CIP. The remaining
capital project sub funds adopt project length budgets and therefore are not included in the annual
budgeting process. Formal budgetary integration is not employed for debt service funds because
effective budgetary control is alternatively achieved through general obligation bond indenture
provisions.
The budgeted amounts presented include any amendments made. The appropriated budget is
prepared by fund, department and function. The legal level of budgetary control is at the
department level. The City Council may authorize department heads to transfer budgeted
appropriations within departments. The Council approved several supplemental budgetary
appropriations during the year, but they were not considered material.
Appropriations lapse at year end unless speQifically carried over. Carryovers to the following year
were $349,612.
Page 34
B. DEFICIT BALANCES
NOTE IV DETAILED NOTES ON ALL FUNDS
A. DEPOSITS AND INVESTMENTS
Petty cash and cash on hand
Demand deposits
U.S. instrumentalities
Total Cash and investments
Reconciliation to financial statements
Per statement of net assets
Unrestricted cash and investments
Per statement of net assets Agency
Total Cash and Investments
CITY OF ROSEMOUNT
NOTES TO FINANCIAL STATEMENTS
December 31, 2007
NOTE III STEWARDSHIP, COMPLIANCE, AND ACCOUNTABILITY (cont.)
Generally accepted accounting principles require disclosure of individual funds that have deficit
balances at year end.
As of December 31, 2007, the following individual special revenue fund held a deficit balance:
Amount Reason
Port Authority TIF 3,370,688
The City will finance this deficit through external or internal sources in future years.
The city maintains a cash and investment pool that is available for use by all funds. Each fund
type's portion of this pool is displayed on the statement of net assets and balance sheet as cash
and investments. In addition, investments are separately held by several of the city's funds.
The City's cash and investments at year end were comprised of the following:
Carrying Statement
Value Balance
2,400 2,095
25,670,240 26,380,809
12,099,425 12,099,425
37,772,065 38,482,329
37,736,450
35,615
37,772,065
Inter -fund loan from Sewer fund
Associated
Risks
N/A
Custodial credit
Credit, concentration
of credit, interest rate
Deposits in each local and area bank are insured by the FDIC in the amount of $100,000 for
interest bearing accounts and $100,000 for noninterest bearing accounts.
Page 35
NOTE IV DETAILED NOTES ON ALL FUNDS (cont.)
Custodial Credit Risk
Deposits
Custodial credit risk is the risk in the event of a financial institution failure, the City's deposits may
not be returned to the City.
The City maintains collateral agreements with its banks. At December 31, 2007, the banks had
pledged various government securities in the amount of $31,734,875 to secure the City's deposits.
Therefore, the City has no custodial credit risk.
Investments
For an investment, custodial credit risk is the risk that, in the event of the failure of the
counterparty, the City will not be able to recover the value of its investments or collateral
securities that are in the possession of an outside party.
The City does not have any investments exposed to custodial credit risk.
Credit Risk
Concentration of Credit Risk
CITY OF ROSEMOUNT
NOTES TO FINANCIAL STATEMENTS
December 31, 2007
Credit risk is the risk that an issuer or other counterparty to an investment will not fulfill its
obligations.
As of December 31, 2007, all of the City of Rosemount's investments were U.S. agency
obligations which received AAA and /or Aaa ratings from Standard Poor's and /or Moody's
Investors Service, respectively.
Concentration of credit risk is the risk of loss attributed to the magnitude of the City's investment
in a single issuer.
As of December 31, 2007, all of the City of Rosemount's investments were U.S. agency
obligations, as follows:
Percentage
Issuer Fair Value of Total
Federal Home Loan Bank 6,485,597 53%
Federal Home Mortgage Corporation 3,710,202 31%
Federal National Mortgage Association 1,903,626 16%
12,099,425
Page 36
Investment Type
CITY OF ROSEMOUNT
NOTES TO FINANCIAL STATEMENTS
December 31, 2007
NOTE IV DETAILED NOTES ON ALL FUNDS (cont.)
A. DEPOSITS AND INVESTMENTS (cont.)
Interest Rate Risk
Interest rate risk is the risk that changes in interest rates will adversely affect the value of an
investment.
As of December 31, 2007, the City of Rosemount's investments were as follows:
Investment Maturities (in years)
Total Fair Less
Value than 1
U.S. Agency Obligations 12,099,425 2,907,363 8,593,104 598,958
1 -5
Investments Highly Sensitive to Interest Rate Changes
Investments highly sensitive to interest rate changes are investments that vary in value more than
one would expect in normal circumstances.
At December 31, 2007, the City held $7,113,773 in U.S. Agency Obligations that are callable at
increasing stepped interest rates.
See Note I.D.1 for further information on deposit and investment policies.
6 -10
More
than 10
Page 37
B. RECEIVABLES
Business -Type Activities
Total Receivables
CITY OF ROSEMOUNT
NOTES TO FINANCIAL STATEMENTS
December 31, 2007
NOTE IV DETAILED NOTES ON ALL FUNDS (cont.)
Receivables as of year end for the government's individual major funds and non -major and
internal service funds in the aggregate, including the applicable allowances for uncollectible
accounts, are as follows:
Port Authority
Debt Capital and Non -Major Internal
Governmental Activities General Service Projects Governmental Service
Totals
Receivables:
Taxes 647,420 1,008 648,428
Accounts 72,444 24,482 96,926
Loans
Special assessments 55,272 1,748,558 544,068 2,347,898
Delinquent special
assessments 726 55,466 5,771 61,963
Due from other
governments 9,482 9,482
Total Receivables 785,344 1,804,024 574,321 1,008 3,164,697
Amounts not expected to
be collected within one
year 38,058 1,203,981 374,621 1,616,660
Nonmajor
Water Sewer Storm Water Enterprise
Utility Utility Utility Funds
Totals
Receivables:
Accounts 273,702 260,003 135,855 669,560
Special assessments 99,643 137,655 26,569 263,867
Due from other governments 20,175 20,175
373,345 397,658 162,425 20,175 953,602
Amounts not expected to be collected
within one year 68,610 94,783 17,606 180,999
Page 38
NOTE IV DETAILED NOTES ON ALL FUNDS (cont.)
B. RECEIVABLES (cont.)
Governmental funds report deferred revenue in connection with receivables for revenues that are
not considered to be available to liquidate liabilities of the current period. Governmental funds also
defer revenue recognition in connection with resources that have been received, but not yet
earned. At the end of the current fiscal year, the various components of deferred revenue and
unearned revenue reported in the governmental funds were as follows:
Delinquent property taxes receivable
Delinquent special assessments
Special assessments not yet due
Donations for future projects
Total Deferred /Unearned Revenue
for Governmental Funds
C. CAPITAL ASSETS
Capital asset activity for the year ended December 31, 2007 was as follows:
Governmental Activities
Capital assets not being depreciated:
Land
Construction in progress
Total Capital Assets
Not Being Depreciated
Capital assets being depreciated:
Improvements
Buildings
Machinery and equipment
Roads
Bridges
Parking lots
Total Capital Assets
Being Depreciated
CITY OF ROSEMOUNT
NOTES TO FINANCIAL STATEMENTS
December 31, 2007
Unavailable Unearned Totals
163,718
61,963
2,332,737
52,983
2,611,401 2,611,401
Beginning
Balance
7,738,059
3,822,482
11, 560, 541
1,059,879
15,738,914
7,753,455
31,997,000
1,887,923
432,490
58,869,661
Additions
2,377,663
689,429
3,067,092
8,724
354,860
3,874,282
4,237,866
163,718
61,963
2,332,737
52,983
Ending
Deletions Balance
10,115,722
3,345,898 1,166,013
3,345,898 11,281,735
2,476
392,434
281,034
230,107
906,051
1,057,403
15,355,204
7,827,281
35,641,175
1,887,923
432,490
62,201,476
Page 39
NOTE IV DETAILED NOTES ON ALL FUNDS (cont.)
C. CAPITAL ASSETS (cont.)
Governmental Activities (cont.)
Less: Accumulated depreciation for:
Improvements
Buildings
Machinery and equipment
Roads
Bridges
Parking lots
Total Accumulated Depreciation
Net Capital Assets
Being Depreciated
Total Governmental Activities
Capital Assets, Net of
Depreciation
Business -Type Activities
Capital assets not being depreciated:
Land
Construction in progress
Total Capital Assets
Not Being Depreciated
Capital Assets Being Depreciated:
Buildings
Machinery and equipment
Mains and lines
Total Capital Assets
Being Depreciated
CITY OF ROSEMOUNT
NOTES TO FINANCIAL STATEMENTS
December 31, 2007
Total Governmental Activities Depreciation Expense
Beginning
Balance Additions Deletions
(553,550) (41,228)
(2,578,125) (291,965)
(4,302,193) (572,160)
(6,370,223) (643,950)
(54,442) (47,198)
(164,710) (10,503)
(14,023,243) (1,607,004)
44,846,418 2,630,862
Depreciation expense was charged to functions as follows:
Governmental Activities
General government
Public safety
Public works, which includes the depreciation of roads, bridges and parking lots
Leisure activities
Beginning
Balance Additions
1,955,640
10,627,491
5,080,996
12,583,131 5,080,996
6,940,202 3,285,010
2,318,545 350,631
103, 883, 989 11, 915, 714
113,142, 736 15, 551, 355
Ending
Balance
(594,778)
(2,870,090)
(211,757) (4,662,596)
(148,340) (6,865,833)
(101,640)
(175,213)
(360,097) (15,270,150)
545,954 46,931,326
56,406,959 5,697,954 (3,891,852) 58,213,061
219,827
239,710
973,312
174,155
1,607,004
Ending
Deletions Balance
1,955,640
14,334,857 1,373,630
14,334,857 3,329,270
62,949 10,162, 263
2,669,176
110,120 115,689,583
173,069 128,521,022
Page 40
NOTE IV DETAILED NOTES ON ALL FUNDS (cont.)
C. CAPITAL ASSETS (cont.)
Business -Type Activities (cont.)
Less: Accumulated depreciation for:
Buildings
Machinery and equipment
Mains and lines
Total Accumulated Depreciation
Net Capital Assets
Being Depreciated
Total Business -Type
Capital Assets, Net of
Depreciation
Subtotal Fund financial statements
Less: Fund eliminations
CITY OF ROSEMOUNT
NOTES TO FINANCIAL STATEMENTS
December 31, 2007
Beginning
Balance Additions
(1,410,707) (201,687)
(1,103,026) (132,276)
(32,649,247) (1,733,597)
(35,162,980) (2,067,560)
77,979,756 13,483,795
Depreciation expense was charged to functions as follows:
Business -Type Activities
Water
Sewer
Storm water
Arena
Total Business -type Activities Depreciation Expense
D. INTERFUND RECEIVABLES /PAYABLES AND TRANSFERS
Ending
Deletions Balance
29,519 (1,582,875)
(1,235,302)
110,120 (34,272,724)
139,639 (37,090,901)
33,430 91,430,121
90,562,887 18,564,791 (14,368,287) 94,759,391
Total Government -Wide Statement of Net Assets 3,690,401
669,016
808,622
535,455
54,467
2,067,560
An interfund receivable /payable in the amount of $12,228 from the arena fund to the general fund
was recorded in the fund financial statements for an overdraft in the pooled cash account. The
amount will be repaid within one year.
The following is a schedule of interfund receivable /advances as of December 31, 2007:
Amount Not
Due Within
Receivable Fund Payable Fund Amount One Year
General Arena (12,228)
Sewer Port Authority TIF 3,503,275
Sewer Building CIP 199,354
Sewer Water 83,064
3,503,275
199,354
72,219
3,773,465 3,774,848
(83,064) (72,219)
3,702,629
Page 41
CITY OF ROSEMOUNT
NOTES TO FINANCIAL STATEMENTS
December 31, 2007
NOTE IV DETAILED NOTES ON ALL FUNDS (cont.)
D. INTERFUND RECEIVABLES /PAYABLES AND TRANSFERS (cont.)
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 2005.
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 water fund interest on the advance based on the average outstanding advance
balance during the year at a rate of 5 The sewer fund is charging the special revenue funds
interest on the advance based on the average outstanding advance balance during the year at a
rate of 4.5 Advances to the two special revenue funds do not have a repayment schedule.
Following is a detailed repayment schedule for the water fund advance:
2008
2009
2010
2011
2012
2013 -2017
2018
Total
Principal
5,847
6,139
6,446
6,768
7,107
41,233
9,524
83,064
Interest
4,153
3,861
3,554
3,232
2,893
8,767
476
26,936
Totals
10,000
10,000
10,000
10,000
10,000
50,000
10,000
110,000
Page 42
NOTES TO FINANCIAL STATEMENTS
December 31, 2007
NOTE IV DETAILED NOTES ON ALL FUNDS (cont.)
D. INTERFUND RECEIVABLES /PAYABLES AND TRANSFERS (cont.)
The following is a schedule of interfund transfers:
Fund Transferred To
General
Capital Projects
Enterprise
Storm water
Arena
Storm Water
Fund Transferred From Amount
Nonmajor enterprise
Capital projects
Debt Service Water
Storm water
Water
Sewer
Storm water
Water
General
Sewer
Less: Fund eliminations
Less: Contributed plant reclassified to a transfer
in the government -wide statements
Total Transfers Government -Wide
Statement of Activities
CITY OF ROSEMOUNT
3,500
85,469
362,000
138,000
515,465
817,882
198,484
66,122
100,000
9,183
2,296,105
(160,775)
(5,535,206)
(3,399,876)
Principal Purpose
Building and grounds
maintenance
To close construction funds
Water portion of debt payment
Storm water portion of debt
payment
Water share of projects
Sewer share of projects
Storm water share of projects
Water share of debt payment
Operating expenses
Sewer chare of projects
Page 43
E. LONG -TERM OBLIGATIONS
Other Liabilities
Vested compensated absences
Total Governmental Activities
Long -Term Liabilities
Other Liabilities:
Vested compensated absences
Total Business -Type Activities
Long -Term Liabilities
CITY OF ROSEMOUNT
NOTES TO FINANCIAL STATEMENTS
December 31, 2007
NOTE IV DETAILED NOTES ON ALL FUNDS (cont.)
D. INTERFUND RECEIVABLES /PAYABLES AND TRANSFERS (cont.)
Generally, transfers are used to (1) move revenues from the fund that collects them to the fund
that the budget requires to expend them, (2) move receipts restricted to debt service from the
funds collecting the receipts to the debt service fund, and (3) use unrestricted revenues collected
in the general fund to finance various programs accounted for in other funds in accordance with
budgetary authorizations.
For the statement of activities, interfund transfers within the governmental activities or business
type activities are netted and eliminated.
Long -term obligations activity for the year ended December 31, 2007 was as follows:
Amounts
Beginning Ending Due Within
Balance Increases Decreases Balance One Year
GOVERNMENTAL ACTIVITIES
Bonds and Notes Payable:
General obligation debt 22,200,000 450,000 3,565,000 19,085,000 2,935,000
Net discount (14,188) (1,800) (3,171) (12,817)
Sub -total 22,185,812 448,200 3,561,829 19,072,183 2,935,000
640,732
22,826,544
376,023 307,551
709,204 340,418
824,223 3,869,380 19,781,387 3,275,418
131,154 77,348
BUSINESS -TYPE ACTIVITIES
Bonds and Notes Payable:
General obligation debt 8,165,000 1,210,000 820,000 8,555,000 1,705,000
Subtract Deferred Amounts For:
Discounts (47,752) (27,110) (20,642)
Sub -total 8,117,248 1,210,000 792,890 8,534,358 1,705,000
62,957 145,545
69,864
8,248,402 1,287,348 855,847 8,679,903 1,774,864
Page 44
E. LONG -TERM OBLIGATIONS (cont.)
General Obligation Debt
CITY OF ROSEMOUNT
NOTES TO FINANCIAL STATEMENTS
December 31, 2007
NOTE IV DETAILED NOTES ON ALL FUNDS (cont.)
All general obligation notes and bonds payable are backed by the full faith and credit of the City.
Notes and bonds in the governmental funds will be retired by future property tax levies or tax
increments accumulated by the debt service fund. Business -type activities debt is payable by
revenues from user fees of those funds or, if the revenues are not sufficient, by future tax levies.
Governmental Activities Date of Final
General Obligation Debt
Refunding Bonds, Series 2001E
Improvement Bonds, Series 1998A
Improvement Bonds, Series 1999A
Improvement Bonds, Series 19996
Improvement Bonds, Series 2001A
Improvement Bonds, Series 2002A
Improvement Bonds, Series 2003A
Improvement Bonds, Series 2006B
Municipal Bldg Refunding, Series 1998A
Public Facilities Bonds, Series 2001C
Fire Station CIP Bonds, Series 2005A
Equipment Certificates, Series 2005B
Fire Station Refunding Bonds, Series 2005D
Equipment Certificates, Series 2006A
Equipment Certificates, Series 2007B
Issue Maturity
2001
1998
1999
1999
2001
2002
2003
2006
1998
2001
2005
2005
2005
2006
2007
Total Governmental Activities General Obligation Debt
Business -Type Activities Date of
General Obligation Debt Issue
Storm Water Revenue Bonds, Series 1996B
Storm Water Revenue Bonds, Series 1999C
Water Revenue Bonds, Series 2000A
Storm Water Revenue Bonds, Series 2001B
Storm Water Rev Refunding Bonds, Series
2001D
Storm Water Revenue Bonds, Series 2002B
Storm Water Bonds, Series 2003B
Water Revenue Bonds, Series 2005C
Water Revenue Bonds, Series 2007A
1996
1999
2000
2001
2001
2002
2003
2005
2007
2004 -2013
2000 -2009
2002 -2011
2002 -2011
2003 -2012
2004 -2013
2005 -2014
2008 -2017
2004 -2018
2003 -2022
2007 -2025
2006 -2010
2007 -2016
2008 -2012
2009 -2013
Total Business -Type Activities General Obligation Debt
Final
Maturity
1998 -2012
2002 -2015
2002 -2016
2003 -2017
2003 -2008
2004 -2018
2005 -2014
2007 -2016
2009 -2018
Interest
Rates
3.1% to 4.6%
3.9% to 4.7%
4.3% to 4.8%
4.2% to 5.1%
3.0% to 4.4%
2.3% to 4.0%
2.0% to 3.3%
4.00%
4.3% to 5.2%
4.0% to 5.0%
3.5% to 4.3%
2.7% to3.1%
3.2% to 3.8%
3.7% to 3.8%
3.5% to 3.6%
Interest
Rates
4.3% to 5.8%
4.7% to 5.4%
4.4% to 5.4%
4.0% to 4.9%
2.5% to 4.0%
3.0% to 4.6%
1.2% to 3.4%
3.5% to 3.8%
4.0%
Original
Indebtedness
725,000
2,010,000
3,715,000
4,395,000
1,325,000
3,395,000
1,945,000
4,405,000
2,405,000
2,045,000
2,630,000
1,535,000
1,115,000
370,000
450,000
Original
Indebtedness
1,035,000
855,000
1,160,000
1,140,000
805,000
1,195, 000
1,170,000
2,990,000
1,210,000
Balance
12 -31 -07
465,000
370,000
990,000
1,030,000
710,000
855,000
1,345,000
4,405,000
1,865,000
1,720,000
2,535,000
945,000
1,030,000
370,000
450,000
19,085,000
Balance
12 -31 -07
430,000
535,000
815,000
850,000
145,000
965,000
850,000
2,755,000
1,210,000
8,555,000
Page 45
CITY OF ROSEMOUNT
NOTES TO FINANCIAL STATEMENTS
December 31, 2007
NOTE IV DETAILED NOTES ON ALL FUNDS (cont.)
E. LONG -TERM OBLIGATIONS (cont.)
General Obligation Debt (cont.)
Debt service requirements to maturity are as follows:
Years
2008
2009
2010
2011
2012
2013 2017
2018 2022
2023 2026
Other Debt Information
Defeasance of Debt
Governmental Activities
General Obligation Debt
Principal Interest
2,935,000
2,480,000
2,340,000
2,060,000
1,590,000
5,425,000
1,690,000
565,000
718,253
616,455
520,875
431,334
356,631
1,028,208
300,321
36,930
Totals 19,085,000 4,009,007
Business -Type Activities
General Obligation Debt
Principal Interest
1,705,000
690,000
740,000
770,000
795,000
3,600,000
255,000
310,389
264,464
230,836
202,754
173,176
387,656
5,430
8,555,000 1,574,705
Estimated payments of compensated absences are not included in the debt service requirement
schedules. The compensated absences liability attributable to governmental activities will be
liquidated primarily by the general fund.
There are a number of limitations and restrictions contained in the various bond indentures and
loan agreements. The City believes it is in compliance with all significant limitations and
restrictions, including federal arbitrage regulations.
The water and storm water utilities have pledged future water and storm water revenues net of
specified operating expenses to repay $8,555,000 in water and storm water revenue bonds issued
in 1996, 1999, 2000, 2001, 2002, 2003, 2005 and 2007. Proceeds from bonds provided financing
for utility improvements. Principal and interest paid for the current year and the gross customer
revenues were $1,121,345 and $3,299,851 respectively.
In a prior year, 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, 2007, $1,175,000 of bonds
outstanding were considered defeased. The bonds are callable on February 1, 2009.
Page 46
CITY OF ROSEMOUNT
NOTES TO FINANCIAL STATEMENTS
December 31, 2007
NOTE IV DETAILED NOTES ON ALL FUNDS (cont.)
F. NET ASSETS/FUND BALANCES
Net assets reported on the government -wide statement of net assets at December 31, 2007
include the following:
Governmental Activities
Invested in capital assets, net of related debt
Land 10,115,722
Construction in progress 1,166,013
Other capital assets, net of accumulated depreciation 46,931,326
Less: related long -term debt outstanding (excluding unspent
capital related debt proceeds) (19,072,183)
Total Invested in Capital Assets, Net of Related Debt 39,140,878
Restricted for debt service 8,736,586
Unrestricted 9,602,486
Total Governmental Activities Net Assets 57,479,950
Page 47
Total Non -Major Funds Reserved
Non -Major Funds
Prepaid items
CITY OF ROSEMOUNT
NOTE IV DETAILED NOTES ON ALL FUNDS (cont.)
NOTES TO FINANCIAL STATEMENTS
December 31, 2007
F. NET ASSETS /FUND BALANCES (cont.)
Governmental Activities (cont.)
Governmental fund balances reported on the fund financial statements at December 31, 2007
include the following:
Reserved
Major Funds
General Fund
Encumbrances 558,190
Prepaid items 25,797
Total 583,987
Debt Service Fund
Reserved for debt service 7,180,264
Capital Project Fund
Reserved for capital projects 239,803
Total Major Funds Reserved 8,004,054
416
416
Unreserved, undesignated (deficit)
Major Funds
General fund 8,967
Special Revenue Funds
Port Authority TIF Fund (3,370,688)
Total (3,361,721)
Non -Major Funds
Special Revenue Funds
Port Authority General Fund 114,581
Page 48
CITY OF ROSEMOUNT
NOTE IV DETAILED NOTES ON ALL FUNDS (cont.)
F. NET ASSETS /FUND BALANCES (cont.)
Governmental Activities (cont.)
Unreserved, designated
Major Funds
General fund
Designated for working capital
Designated for compensated absences
Total
General Capital Projects Fund
Designated for capital projects
NOTES TO FINANCIAL STATEMENTS
December 31, 2007
Total Major Funds Unreserved, designated
5,747,445
709,204
6,456,649
4,662,910
$11,119,559
Non -Major Funds
Special Revenue Funds
Tree disease grant program fund 150
Crime reduction project fund 835
Fire safety education fund 7,599
GIS fund 40,207
Total Non -Major Funds Unreserved, designated 48,791
Page 49
NOTE V OTHER INFORMATION
A. EMPLOYEES' RETIREMENT SYSTEM
a. Plan Description
CITY OF ROSEMOUNT
NOTES TO FINANCIAL STATEMENTS
December 31, 2007
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
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 Statutes,
Chapters 353 and 356.
PERF members belong to either the Coordinated Plan or the Basic Plan.
Coordinated Plan members are covered by Social Security and Basic Plan
members are not. All new members must participate in the Coordinated Plan. All
police officers, 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 50
NOTE V OTHER INFORMATION (cont.)
CITY OF ROSEMOUNT
NOTES TO FINANCIAL STATEMENTS
December 31, 2007
A. EMPLOYEES' RETIREMENT SYSTEM (cont.)
1. Public Employees Retirement Association (cont.)
a. Plan Description (cont.)
There are different types of annuities available to members upon retirement. A
normal annuity is a lifetime annuity that ceases upon the death of the retiree no
survivor annuity is payable. There are also various types of joint and survivor
annuity options available which will reduce the monthly normal annuity amount,
because the annuity is payable over joint lives. Members may also leave their
contributions in the fund upon termination of public service in order to qualify for a
deferred annuity at retirement age. Refunds of contributions are available at any
time to members who leave public service, but before retirement benefits begin.
The benefit provisions stated in the previous paragraphs of this section are current
provisions and apply to active plan participants. Vested, terminated employees who
are entitled to benefits but are not receiving them yet are bound by the provisions
in effect at the time they last terminated their public service.
PERA issues a publicly available financial report that includes financial statements
and required supplementary information for 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 5.75 respectively, of their annual
covered salary. PEPFF members are required to contribute 7.80% 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,
6.25% for Coordinated Plan PERF members, and 11.70% for PEPFF members.
The City's contributions to the Public Employees Retirement Fund for the years
ending December 31, 2007, 2006 and 2005 were $222,179, $204,745 and
$180,854, respectively. The City's contributions to the Public Employees Police
Fire Fund for the years ending December 31, 2007, 2006 and 2005 were $178,096,
$149,675 and $126,999 respectively. The City's contributions were equal to the
contractually required contributions for each year as set by state statute.
Page 51
NOTE V OTHER INFORMATION (cont.)
CITY OF ROSEMOUNT
NOTES TO FINANCIAL STATEMENTS
December 31, 2007
A. EMPLOYEES' RETIREMENT SYSTEM (cont.)
2. Rosemount Fire Department Relief Association Defined Benefit Pension Plan
a. Plan Description
The City of Rosemount contributes to the Rosemount Fire Department Relief
Association Pension Plan; a single employer retirement system administered by
the Rosemount Fire Department Relief Association. The Rosemount Fire
Department Relief Association provides a lump -sum benefit to its members upon
retirement, total disability or death. These benefit provisions are established and
can be amended by the Rosemount Fire Department Relief Association's Board of
Trustees with approval by the Rosemount City Council. The Rosemount Fire
Department Relief Association issues a publicly available financial report that
includes financial statements and required supplementary information for the
Rosemount Fire Department Relief Association Pension Plan. That report may be
obtained by writing to City of Rosemount, 2875 145 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 $6,900 per year of
service. In the event an otherwise qualified member has less than 20 years of
service, the member is eligible for a pension payment of 60 percent after 10 years
of service, increasing 4 percent for each year of service after 10 years to a
maximum of 100 percent. Members retiring before 50 do not receive distributions
until age 50, but interest at 5% per year is added to their retirement benefit until
paid.
c. Annual Pension Cost and Net Pension Obligations
Financial requirements of the Association are determined based on a formula
prescribed in Minnesota Statues 69.772. Those statutes prescribe a set amount of
funding, per $100 of lump -sum benefits payable per year of service. For
associations with assets exceeding the statutory pension liability, the financial
requirements shall be the increase in the statutory pension liability for the next year
over the current year, reduced by an amount equal to one -tenth of the surplus. For
associations with a deficit of assets to fund the statutory pension liability, the
financial requirements shall be the increase in the statutory pension liability for the
next year over the current year, increased by an amount equal to one -tenth the
deficit. The City's minimum obligation is the financial requirement for the year less
anticipated state aids and interest on investments calculated at a rate of 5 percent.
The actuarial value of assets was determined using fair value.
Page 52
NOTE V OTHER INFORMATION (cont.)
CITY OF ROSEMOUNT
NOTES TO FINANCIAL STATEMENTS
December 31, 2007
A. EMPLOYEES' RETIREMENT SYSTEM (cont.)
2. Rosemount Fire Department Relief Association- Defined Benefit Pension Plan
(cont.)
c. Annual Pension Cost and Net Pension Obligations (cont.)
The following actuarial assumptions and methods were used:
Actuarial cost method
Inflation rate
Investment return
Projected salary increases
Postretirement benefit increases
Amortization method
Amortization period
Items are not available because no actuarial
statutes.
The annual pension cost for the Rosemount
Pension Plan for the year ended December 31
Fiscal Year
Ending
2007
2006
2005
State of Minnesota contribution
City of Rosemount contribution
Three Year Trend Information
Annual
Pension Cost
(APC)
249,647
256,225
246,611
N/A
N/A
N/A
N/A
N/A
N/A
N/A
valuation was required by Minnesota
Fire Department Relief Association
2007 was as follows:
100.0%
100.0
100.0
Amount
102,047
147,600
249,647
The City recognizes the State of Minnesota's contributions to the Rosemount Fire
Department Relief Association Pension Plan as revenue and expense.
Percentage
of APC Net Pension
Contribution Obligation
0
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 2005 was based on the same formula,
funding method and other factors that were used in previous years.
Page 53
NOTE V OTHER INFORMATION (cont.)
A. EMPLOYEES' RETIREMENT SYSTEM (cont.)
B. RISK MANAGEMENT
CITY OF ROSEMOUNT
NOTES TO FINANCIAL STATEMENTS
December 31, 2007
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,
2005. 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, 2007.
Assets as a Overfunded
Aggregate Percentage of (Underfunded)
Valuation Valuation Accrued Accrued Accrued
Date Assets Liabilities Liabilities Liabilities
12 -31 -07 2,607,807 2,601,785 100 6,022
12 -31 -06 2,557,862 2,431,423 105 126,439
12 -31 -05 2,057,229 2,055,229 101 2,000
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, 2007 and for the year then ended, the Association held no
securities issued by City or other related parties.
The City is exposed to various risks of loss related to torts; theft of, damage to, or destruction of
assets; errors and omissions; workers compensation; and health care of its employees. The City
purchases commercial insurance and participates in a public entity risk pool called the Minnesota
League of Cities Insurance Trust to provide coverage for these various risks of loss. Settled
claims have not exceeded coverage in any of the past three years. There were no significant
reductions in coverage compared to the prior year.
The City has established an internal service fund (Insurance Fund) to account for and finance
uninsured risks of loss related to torts, theft of, damage to and destruction of assets, including
deductibles. The majority of the City's general liability and workers compensation insurance
premiums are paid for by this fund. At December 31, 2007, 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 54
NOTE V OTHER INFORMATION (cont.)
C. COMMITMENTS AND CONTINGENCIES
CITY OF ROSEMOUNT
NOTES TO FINANCIAL STATEMENTS
December 31, 2007
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.
D. JOINT POWERS DEBT COMMITMENT
On August 25, 2005 the City of Rosemount entered into a joint powers agreement with the Cities
of Apple Valley, Burnsville, Eagan, Farmington, Hastings, Inver Grove Heights, Lakeville, Mendota
Heights, South St. Paul, West St. Paul, Minnesota, and Dakota County Minnesota, to establish the
Dakota Communications Center (DCC), a Minnesota nonprofit corporation. The purpose of the
DCC is to engage in the operation and maintenance of a countywide public safety answering point
and communications center for law enforcement, fire, emergency medical services, and other
public safety services for the mutual benefit of residents residing in the abovementioned cities and
county, (members). Pursuant to the joint powers agreement, members are required to provide
DCC their pro rata share of cost of operations and maintenance, and capital projects.
On May 1, 2007, the DCC issued Public Safety Revenue Bonds, Series 2007 in the amount of
$7,315,000 to provide financing for the acquisition of equipment and reimbursement for
conversion costs. The bonds are special obligations of the DCC, payable from revenues to be
received from members. Pursuant to the joint powers agreement, members will levy taxes for the
payment of their pro rata share of the principal and interest payments due on the bonds. The
bonds mature February 1, 2014, and bear interest rates ranging from 4.5% 5.0 The debt will
be re -paid with member assessments over a seven year amortization. All members reserve the
right to prepay, in whole or in part on any date, its allocated share of principal and interest on the
bonds.
Page 55
NOTE V OTHER INFORMATION (cont.)
D. JOINT POWERS DEBT COMMITMENT (cont.)
CITY OF ROSEMOUNT
NOTES TO FINANCIAL STATEMENTS
December 31, 2007
Payments from the City of Rosemount are provided from General Fund appropriations. The City
of Rosemount's future member payments to DCC as of December 31, 2007 are as follows:
E. SUBSEQUENT EVENTS
Payment Year Amount
2008 58,675
2009 61,650
2010 59,650
2011 62,150
2012 59,950
2013 57,750
Total 359,825
Pursuant to Section 9.5 of the joint powers agreement, member payments are submitted
monthly and held in escrow by U.S. Bank National Association (trustee) until the funds are
remitted to the bond holders according to the established bond principal and interest due
dates. The interest earnings from the escrow account will reduce future member obligations
on the debt. Information regarding the Dakota Communications Center can be obtained at the
website www.mn- dcc.orq /stats.asp or by contacting Jeff May at the City of Rosemount, 2875
145 Street West, Rosemount, Minnesota 55068. Telephone 651 322 -2031 or email address
jeff.may @ci.rosemount.mn.us.
On March 5, 2008, the City issued Series 2008A Port Authority Taxable General Obligation Tax
Increment Bonds in the amount of $2,765,000 and Series 2008B Port Authority General Obligation
Tax Increment Bonds in the amount of $3,275,000. The proceeds will be used for various
redevelopment projects.
Page 56
REVENUES
GENERAL FUND
SCHEDULE OF REVENUES COMPARED TO BUDGET (BUDGETARY BASIS) BUDGET AND ACTUAL
For the Year Ended December 31, 2007
TAXES
General property tax
Fiscal disparities
Other
Total Taxes
INTERGOVERNMENTAL REVENUES
State aid police
State aid general government
State aid highway
Other
Total Intergovernmental Revenues
PUBLIC CHARGES FOR SERVICES
General government
Public safety
Highways and streets
Parks and recreation
SAC
Total Charges for Services
LICENSES AND PERMITS
Business
Non business
Total Licenses and Permits
FINES AND FORFEITURES
County
SPECIAL ASSESSMENTS
INVESTMENT INCOME AND MISCELLANEOUS
Investment income
Net decrease in the fair value of investments
Miscellaneous general revenues
Donations
Rents
Total Investment income and miscellaneous
Total Revenues
OTHER FINANCING SOURCES
Transfers in
Total Revenues and Other Financing Sources
CITY OF ROSEMOUNT
REQUIRED SUPPLEMENTARY INFORMATION
Budgeted Amounts
Original Final
127,000
25,000
26,000
77,000
255,000
127,000
13,000
26,000
77,000
243,000
Variance with
Actual Final Budget
5,838,586 5,838,586 6,132,682 294,096
870,514 870,514 870,514
162,000 162,000 201,446 39,446
6,871,100 6,871,100 7,204,642 333,542
147,061
35,475
29,115
85,290
296,941
854,200 854,200 839,922
32,700 32,700 39,531
20,000 20,000 5,299
232,000 232,000 279,848
5,000 5,000 3,594
1,143,900 1,143, 900 1,168,194
20,061
10,475
3,115
8,290
41,941
(14,278)
6,831
(14,701)
47,848
(1,406)
24,294
37,000 37,000 40,915 3,915
614,100 614,100 609,719 (4,381)
651,100 651,100 650,634 (466)
90,000 90,000 120,093 30,093
20,000 20,000 12,135 (7,865)
151,000 151,000 277,691 126,691
90,546 90,546
2,000 33,200 60,896 27,696
25,823 25,823
5,500 5,500 5.236 (264)
158,500 215,523 460,192 244,669
9,177,600 9,246,623 9,912,831 666,208
9,177,600 9,350,123 10,001,800 651,677
See accompanying notes to required supplementary information.
103,500 88,969 (14,531)
Page 57
CURRENT EXPENDITURES
GENERAL FUND
SCHEDULE OF EXPENDITURES AND OTHER USES (BUDGETARY BASIS) BUDGET AND ACTUAL
For the Year Ended December 31, 2007
GENERAL GOVERNMENT
Mayor and council
Executive
Elections
Finance
Community development
General government
TOTAL GENERAL GOVERNMENT
PUBLIC SAFETY
Police department
Fire department
TOTAL PUBLIC SAFETY
PUBLIC WORKS
Government building maintenance
Fleet maintenance
Street maintenance
Park maintenance
TOTAL PUBLIC WORKS
PARKS AND RECREATION
OTHER FINANCING USES
Transfers out
TOTAL EXPENDITURES
Beginning of year budget basis encumbrances
End of year budget basis encumbrances
GAAP basis expenditures and other financing uses
CITY OF ROSEMOUNT
REQUIRED SUPPLEMENTARY INFORMATION
Budgeted Amounts
Original Final
197,100
524,200
61,000
333,200
893,300
378,100
228,300
524,200
61,000
333,200
893,575
378,100
See accompanying notes to required supplementary information.
Variance with
Actual Final Budget
245,458 (17,158)
470,007 54,193
60,415 585
330,105 3,095
819,969 73,606
381,610 (3,510)
2,386,900 2,418,375 2,307,564 110,811
2,623,400 2,645,788 2,552,616 93,172
291,800 291,800 317,624 (25,824)
2,915,200 2,937,588 2,870,240 67,348
413,400 413,400 422,059 (8,659)
527,100 527,100 466,277 60,823
1,162,900 1,162,900 1,135,070 27,830
559,700 559,700 535,318 24,382
2,663,100 2,663,100 2,558,724 104,376
1,115,900 1,131,060 1,152,615 (21,555)
100,000 (100,000)
9,081,100 9,150,123 8,989,143 160,980
334,104
(558,190)
8,765,057
Page 58
Budgetary Information
Budgetary information is derived from the annual operating budget and is presented using
generally accepted accounting principles and the modified accrual basis of accounting with
departures from generally accepted accounting principles for encumbrances.
Excess expenditures over appropriations are as follows:
General Fund
CITY OF ROSEMOUNT
NOTES TO REQUIRED SUPPLEMENTARY INFORMATION
December 31, 2007
Final
Budget Expenditures Excess
Mayor and council 228,300 245,458 17,158
Fire department 291,800 317,624 25,824
Government building maintenance 413,400 422,059 8,659
Page 59
CITY OF ROSEMOUNT
COMBINING BALANCE SHEET NONMAJOR GOVERNMENTAL FUNDS
December 31, 2007
Special Revenue Funds
Total
Tree Disease Crime Fire Nonmajor
Grant Reduction Safety Port Authority Governmental
Program Project Education GIS General Funds
ASSETS
Cash and investments 150 835 7,599 40,207 122,653 171,444
Receivables:
Prepaid items 416 416
Total assets 150 835 7,599 40,207 123,069 171,860
LIABILITIES
Accounts payable 8,072 8,072
Total liabilities 8,072 8,072
FUND BALANCES
Reserved for prepaid items 416 416
Unreserved
Designated for subsequent years' expenditures 150 835 7,599 40,207 48,791
Undesignated 114,581 114,581
Total fund balances 150 835 7,599 40,207 114,997 163,788
Total liabilities and fund balances 150
835 7,599 40,207 123,069 171,860
Page 60
FUND BALANCES Beginning of Year
FUND BALANCES END OF YEAR
CITY OF ROSEMOUNT
COMBINING STATEMENT OF REVENUES, EXPENDITURES AND
CHANGES IN FUND BALANCES NONMAJOR GOVERNMENTAL FUNDS
For the Year Ended December 31, 2007
Special Revenue Funds
Total
Tree Disease Crime Fire Nonmajor
Grant Reduction Safety Port Authority Governmental
Program Project Education GIS General Funds
REVENUES
Public charges for services 5,716 11,256 16,972
Investment income and miscellaneous 1 5 236 160 507,766 508,168
Total Revenues 1 5 236 5,876 519,022 525,140
EXPENDITURES
Current:
General government 78,003 78,003
Public safety 360 1,777 2,137
Public works 7,793 7,793
Capital outlay 558,910 558,910
Total Expenditures 360 1,777 7,793 636,913 646,843
Net change in fund balance 1 (355) (1,541) (1,917) (117,891) (121,703)
149 1,190 9,140 42,124 232,888 285,491
150 835 7,599 40,207 114,997 163,788
Page 61
CITY OF ROSEMOUNT
BUILDING CIP CAPITAL PROJECT FUND
SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES
IN FUND BALANCE (BUDGETARTY BASIS) BUDGET AND ACTUAL
For the Year Ended December 31, 2007
Original and
Final Budgeted Variance with
REVENUES Amounts Actual Final Budget
Taxes 24,000 24,000
Investment income 2,500 26,291 23,791
Total Revenues
26,500
50,291 23,791
EXPENDITURES
Current:
General government 2,500 2,500
Capital Outlay 13,350 13,350
Debt Service:
Interest on lease 10,650 10,636 14
Total Expenditures 26,500 13,136 13,364
Excess of revenues over expenditures 37,155 37,155
OTHER FINANCING SOURCES
Operating transfers out (19,368) (19,368)
Total Other Financing Sources (Uses) (19,368) (19,368)
Net Change in Fund Balance 17,787 17,787
FUND BALANCE Beginning 1,438,080 581,592
FUND BALANCE ENDING
1,438,080 599,379
17,787
Page 62
REVENUES
Taxes
Intergovernmental
Charges for services
Special assessments
Investment income
Total Revenues
EXPENDITURES
Current:
General government
Public Works
Capital Outlay
Total Expenditures
FUND BALANCE Beginning
CITY OF ROSEMOUNT
STREET CIP CAPITAL PROJECT FUND
SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES
IN FUND BALANCE (BUDGETARY BASIS) BUDGET AND ACTUAL
For the Year Ended December 31, 2007
Excess of revenues over expenditures
OTHER FINANCING SOURCES (USES)
Transfers in
Transfers out
Total Other Financing Sources (Uses)
Net Change in Fund Balance
FUND BALANCE ENDING
Original and
Final Budgeted
Amounts
1,050,000
300,000
10,500
1,360,500
Actual
1,050,000
833,630
369,088
182,995
37,924
2,473,637
2,500 9,541
111,561
1,250,000 104,218
1,252,500 225,320
108,000 2,248,317
108,000 874,828
1,460,753 1,055,995
Variance with
Final Budget
833,630
69,088
182,995
27,424
1,113,137
(7,041)
(111,561)
1,145,782
1,027,180
2,140,317
61,936 61,936
(1,435,425) (1,435,425)
(1,373,489) (1,373,489)
766,828
1,568,753 1,930,823 766,828
Page 63
Total Revenues
CITY OF ROSEMOUNT
EQUIPMENT CIP CAPITAL PROJECT FUND
SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES
IN FUND BALANCE (BUDGETARY BASIS) BUDGET AND ACTUAL
For the Year Ended December 31, 2007
Budgeted Amounts Variance with
REVENUES Original Final Actual Final Budget
Taxes 303,000 303,000 303,000
Intergovernmental 63,801 63,801
Investment income 5,000 5,000 29,221 24,221
308,000 371,801
396,022 24,221
EXPENDITURES
Current:
General government 2,500 2,500 2,500
Capital Outlay 836,000 899,801 761,148 138,653
Debt Service:
Principal retirement 37,186 (37,186)
Interest and fiscal charges
Total Expenditures
Excess of revenues over (under) expenditures
OTHER FINANCING SOURCES
Issuance of long -term debt
Sale of capital assets
Total Other Financing Sources
Net Change in Fund Balance
FUND BALANCE Beginning
FUND BALANCE ENDING
838,500 902,301 800,834 101,467
(530,500) (530,500) (404,812) 125,688
524,000 524,000 443,700 (80,300)
9,000 9,000 19,005 10,005
533,000 533,000 462,705 (70,295)
2,500 2,500 57,893 55,393
555,562 555,562 983,374
558,062 558,062 1,041,267 55,393
Page 64
ASSETS
Cash and investments
LIABILITIES
Due to M.A.A.G.
CITY OF ROSEMOUNT
SCHEDULE OF CHANGES IN ASSETS AND LIABILITIES
M.A.A.G. AGENCY FUND
For the Year Ended December 31, 2007
Balance
Balance
1/1/2007 Receipts Disbursements 12/31/2007
29,324 34,710 28,419 35,615
29,324 34,710 28,419 35,615
Page 65
THIS PAGE INTENTIONALLY LEFT BLANK
STATISTICAL SECTION
This part of the City of Rosemount's comprehensive annual financial report presents detailed
information as a context for understanding what the information in the financial statements, note
disclosures, and required supplementary information says about the government's overall financial
health.
Contents Page
Financial Trends
These schedules contain trend information to help the reader understand
how the government's financial performance and well -being have changed
over time.
Revenue Capacity
These schedules contain information to help the reader assess the
government's most significant local revenue source, the property tax.
Debt Capacity
These schedules present information to help the reader assess the
affordability of the government's current levels of outstanding debt and the
government's ability to issue additional debt in the future.
Demographic and Economic Information
These schedules offer demographic and economic indicators to help the
reader understand the environment within which the government's financial
activities take place.
Operating Information
These schedules contain service and infrastructure data to help the reader
understand how the information in the government's financial report relates
to the services the government provides and the activities it performs.
67
73
77
82
84
Sources: Unless otherwise noted, the information in these schedules is derived from the comprehensive annual financial reports
for the relevant year.
Page 66
Schedule 1
City of Rosemount
Net Assets by Component
Last Five Fiscal Years
(Accrual Basis of Accounting)
Governmental activities
Invested in capital assets, net of related debt
Restricted
Unrestricted
Total governmental activities net assets
Business -Type activities
Invested in capital assets, net of related debt
Restricted
Unrestricted
Total business -Type activities net assets
Primary government
Invested in capital assets, net of related debt
Restricted
Unrestricted
Total primary government net assets
2003
Fiscal Years
2004 2005
2006
2007
19,273,447 17,030,985 24,737,314 34,221,147 39,140,878
9,632,707 7,554,872 6,945,736
21,839,805 26,487,766 20,397,787 11,090,854 11,393,336
41,113,252 43,518,751 54,767,808 52,866,873 57,479,950
62,897,357 69,812,374 72,422,792 82,445,638 86,225,033
7,531,705 6,910,541 9,143,318 8,554,984 8,920,483
9,622,735 13, 050, 394 15, 287, 896 12, 632, 984 12,387,250
80,051,797 89,773,309 96,854,006 103,633,606 107,532,766
82,170,804 86,843,359 97,160,106 116,666,785 125,365,911
7,531,705 6,910,541 18,776,025 16,109,856 15,866,219
31,462,540 39,538,160 35,685,683 23,723,838 23,780,586
121,165,049 133,292,060 151,621,814 156,500,479 165,012,716
Source: City of Rosemount Comprehensive Annual Financial Reports
Note: The City began to report accrual information when it implemented GASB Statement 34 in fiscal year 2003.
Page 67
Schedule 2
City of Rosemount
Changes in Net Assets
Last Five Fiscal Years
(Accrual Basis of Accounting)
Fiscal Years
2003 2004 2005 2006 2007
Expenses
Governmental activities
General government 1,772,833 2,068,246 2,739,933 2,722,728 2,610,367
Public safety 2,350,428 2,468,826 2,730,428 2,928,783 3,293,615
Public works 3,814,357 5,893,405 8,344,837 7,724,300 4,974,625
Culture, education and recreation 1,099,990 1,154,709 1,250,743 1,257,556 1,386,322
Conservation and economic development 2,648 23,598 2,297 342 9,677
Interest and fiscal charges 971,498 802,957 1,067,478 921,318 841,108
Total govemmental activities expenses 10,011,754 12,411,741 16,135,716 15,555,027 13,115,714
Business -type activities
Water Utility 1,268,363 1,763,570 1,671,775 1,603,391 2,366,263
Sewer Utility 1,482,577 1,703,280 1,975,164 1,913,071 2,059,411
Storm Water Utility 839,499 737,401 842,701 916,557 1,245,492
Arena 359,630 391,570 443,128 457,897 468,017
Total business -type activities expenses 3,950,069 4,595,821 4,932,768 4,890,916 6,139,183
Total primary government expenses
13,981,823 17,007,562 21,068,484 20,445,943 $19,254,897
Program Revenues
Govemmental activities
Charges for services
General government 1,854,322 2,591,883 2,695,090 2,065,514 1,876,616
Public safety 130,581 135,673 120,182 117,017 159,624
Public works 43,377 97,140 37,497 25,159 8,893
Culture, education and recreation 355,981 1,365,568 1,137,357 351,867 693,482
Operating grants and contributions
General govemment 12,889 65,600 11,802 25,608 25,823
Public safety 152,036 182,122 252,907 212,885 251,262
Public works 1,315,865 1,738,997 354,618 169,586 926,545
Culture, education and recreation 23,633 19,076 1,135 1,163
Conservation and economic development 169,866 18,019 15,000 18,500 15,400
Capital grants and contributions
General govemment 3,435,395 8,746 117,025
Public safety 152,495 1,562
Public works 9,167,679 8,672,316 13,294,175 5,218,862 2,515,378
Culture, education and recreation 1,024,357 1,349 423,305
Conservation and economic development 210,863
Total govemmental activities program revenues 13,202,596 14,890,951 22,760,814 8,216,228 7,016,078
Business -type activities
Charges for services
Water Utility 2,626,145 3,361,166 2,562,552 2,115,864 2,092,633
Sewer Utility 1,837,761 2,089,244 1,946,894 1,722,929 1,677,768
Storm Water Utility 1,510,114 1,739,183 1,999,635 1,167,514 1,056,510
Arena 308,461 337,912 331,205 351,808 373,504
Operating grants and contributions
Water Utility 1,570
Sewer Utility 930
Capital grants and contributions
Water Utility 111,117 288,615 44,989 107,855 46,807
Sewer Utility 525,459 126,936 87,619 90,776 88,516
Storm Water Utility 729,012 846,683 80
Arena 39,900
Total business -type activities program revenues 7,690,469 8,789,739 6,972,894 5,556,826 5,335,738
Total primary govemment program revenues 20,893,065 23,680,690 29,733,708 13,773,054 12,351,816
Net (Expense) Revenue
Govemmental activities 3,190,842 2,479,210 6,625,098 (7,338,799) (6,099,636)
Business -type activities 3,740,400 4,193,918 2,040,126 665,910 (803,445)
Total primary govemment next expense 6,931,242 6,673,128 8,665,224 (6,672,889) (6,903,081)
Page 68
Schedule 2 (continued)
City of Rosemount
Changes In Net Assets
Last Five Fiscal Years
(Accrual Basis of Accounting)
2003
Fiscal Years
2004 2005 2006 2007
General Revenues and Other Changes in Net Assets
Governmental activities
Property taxes, levied for general purposes 5,832,653 6,325,217 6,902,852 7,275,781 8,640,194
Property taxes, levied for debt service 266,011 1,644,099 1,377,159 1,951,327 2,025,349
Other taxes 133,525 141,642 173,719 184,868 201,446
Public gifts and /or grants 77,884
Investment income 391,103 376,200 567,112 1,064,315 967,337
Gain (loss) on the sale of assets (232,155)
Miscellaneous 5,127 29,244 71,371 131,352 2,478,263
Transfers (5,476,125) (5,087,288) (4,468,254) (5,169,779) (3,599,876)
Total governmental activities 998,023 3,429,114 4,623,959 5,437,864 10,712,713
Business -type activities
Investment income 299,851 440,306 572,317 943,911 1,102,729
Gain (loss) on the sale of assets (1,604)
Transfers 5,476,125 5,087,288 4,468,254 5,169,779 3,599,876
Total business -type activities 5,774,372 5,527,594 5,040,571 6,113,690 4,702,605
Total primary govemment 6,772,395 8,956,708 9,664,530 11,551,554 15,415,318
Change In Net Assets
Governmental activities 4,188,865 5,908,324 11,249,057 (1,900,935) 4,613,077
Business -type activities 9,514,772 9,721,512 7,080,697 6,779,600 3,899,160
Total primary government 13,703,637 15,629,836 18,329,754 4,878,665 8,512,237
Source: City of Rosemount Comprehensive Annual Financial Reports
Note: The City began to report accrual information when it implemented GASB Statement 34 in fiscal year 2003.
Page 69
Schedule 3
City of Rosemount
Fund Balances, Governmental Funds
Last Five Fiscal Years
(Modified Accrual Basis of Accounting)
General Fund
Reserved for
Prepaid items
Encumbrances
Unreserved
Designated
Undesignated
Total General Fund
All Other Governmental Funds
Reserved for
Debt service
Special revenue funds prepaid items
Capital projects funds encumbrances
Unreserved
Designated
Capital projects funds
Special revenue funds
Undesignated
Port Authority TIF funds
Special revenue funds
Total All Other Governmental Funds
Total All Funds
2003
4,525,008
12,821
4,713,147
7,563,183
1,128,712
2,507,528
1,666,889
(98,266) (92,969)
12,768,046 16,876,142
17,481,193 $22,354,890
Source: City of Rosemount Comprehensive Annual Financial Reports
Fiscal Years
2004
4,931,177
13,999
5,478,748
9,508,673
335
1,630,159
2,712,870
3,117,074
2005
5,162,364
15,486
5,807,738
9,784,931
364
1,168,027
6,395,862
3,706,078
(331,928)
20,723,334
26,531,072
2006
27,979 30,048 29,926 31,447 25,797
147,339 503,524 599,962 334,104 558,190
5,429,801
17,508
5,812,860
7,570,248
391
727,152
4,862,317
52,603
2007
6,456,649
8,967
7,049,603
7,180,264
416
239,803
4,662,910
48,791
(2,971,333) (3,370,688)
232,497 114,581
10,473,875 8,876,077
16,286,735 15,925,680
Page 70
Schedule 4
City of Rosemount
Changes in Fund Balances, Governmental Funds
Last Five Fiscal Years
(Modified Accrual Basis of Accounting)
Revenues
Taxes
Tax increments
Intergovernmental
Public charges for services
Licenses and permits
Fines and forfeitures
Special assessments
Investment income and miscellaneous
Total revenues
Expenditures
Current:
General government
Public safety
Public works
Parks and recreation
Conservation and development
Other
Capital Outlay
Debt Service:
Principal retirement
Interest and fiscal charges
Total expenditures
Excess (deficiency) of revenues
over (under) expenditures
Other financing sources (uses)
Issuance of Tong -term debt
Payment to escrow agent
Premium on long -term debt
Discount on long -term debt
Capital leases
Sale of capital assets
Transfers in
Transfers out
Total other financing sources (uses)
Net change in fund balances
Fund balances Beginning (Restated)
Fund balances Ending
Debt service as a percentage of
noncapital expenditures
See Note IV.G for restatement of fund balance.
2003
6,232,189
1,650,656
1,378,920
915,589
89,752
1,557,386
7,817,963
19,642,455
1,605,319
2,091,444
2,055,389
907,100
297
21,050
7,356,580
10,265,948
1,137,023
25,440,150
(5,797,695)
1,945,000
Source: City of Rosemount Comprehensive Annual Financial Reports
74,257
37,513
2,451,981
(7,928,106)
(3,419,355)
(9,217,050)
29,799,538
63.1%
Fiscal Years
2004
8,110,958 8,176,465 9,111,739
22,264 40,236
1,983,738 619,637 402,106
2,798,197 2,708,131 1,671,934
1,295,164 1,194,106 799,650
98,947 90,787 90,776
1,590,026 1,382,539 1,373,904
8,544,963 12,891,807 6,171,310
24,421,993 27,085,736 19,661,655
1,898,739
2,234,367
2,623,105
980,841
12,469,486
3,011,929
981,801
24,200,268
221,725
6,350
3,615,269
(2,070,942)
1,550,677
1 ,772,402
20,582,488
34.0%
2005
2,482,348
2,464,679
2,190,297
1,034,193
15,932,587
3,811,892
936,522
28,852,518
(1,766,782) (17,021,197) (2,763,591)
5,280,000
2,650
2,177, 097
(1,516,783)
5,942,964
4,176,182
22,354,890
36.8%
2006
2,270,416
2,626,053
2,822,803
1,080,786
22,873,101 9,719,678
4,106,223
903,470
36,682,852
4,775,000
(1,182,525)
21,147
(3,533)
101,841
3,283,961
(219,031)
6,776,860
(10,244,337)
2007
10,447,961
159,030
1,194,371
1,967,889
650,634
120,870
1,582,277
4,426,241
20,549,273
2,380,884
2,913,163
2,568,514
1,152,615
3,565,000
1,013,010
23, 312,864
450,000
(1,800)
19,005
2,120,800
(185,469)
2,402,536
(361,055)
26, 531,072 16,286,735
20,582,488 22,354,890 26,531,072 16,286,735 15,925,680
36.3%
Page 71
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Schedule 11
City of Rosemount
Direct and Overlapping Governmental Activities Debt
As of December 31, 2007
Direct Debt:
City of Rosemount
Governmental Units (1)
Overlapping Debt:
School Districts:
I.S.D. 196 Rosemount
I.S.D. 199 Inver Grove Heights
I.S.D. 200 Hastings
(5)
Net General
Obligation
Bonded Debt
Outstanding (2)
129,763,479 (4)
39,105,000
41,250,000
Dakota County 93,590,000
Regional:
Metropolitan Council
Metropolitan Transit District
5,085,630 (3) 100.00%
Total Overlapping Debt 510,973,479
Total Direct Overlapping Debt 516,059,109
(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.
Includes annual appropriation lease revenue debt.
(3) Net general obligation bonded debt of the city supported by property taxes (see Schedule 10).
(4) Includes $13,420,000 of annual appropriation lease revenue debt and certificates of participation.
Excludes general obligation debt supported by sanitary sewer revenues, 911 user fees and
housing rental payments. Includes certificates of participation.
(6) Includes lease revenue bonds issued by the Bloomington Port Authority for constructing and
equipping a transit station and parking ramp. These bonds are subject to annual appropriation.
(7) Percent of governmental unit within the City of Rosemount's boundaries calculated
by the city's fiscal consultants, Springsted Inc.
Estimated
Percentage
Applicable
to City (7)
Estimated
Amount
Applicable
to City
5,085,630
12.20% 15,831,144
4.40% 1,720,620
0.10% 41,250
4.90% 4,585,910
31,795,000 (5) 0.70% 222,565
175,470,000 0.80% 1,403,760
23,805,249
28,890,879
Page 78
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Schedule 14
City of Rosemount
Demographic and Economic Statistics
Last Ten Calendar Years
Calendar
Year Population (1)
1998
1999
2000
2001
2002
2003
2004
2005
2006
2007
13,146
13,544
14,619
15,270
16,110
18,700
19,907
20,837
22,049
22,397
Per Capita
Income (2)
31,717
33,193
36,576
36,788
37,289
38,819
40,315
41,416
41,416
41,416
Personal School Unemployment Median
Income (3) Enrollment (4) Rate (5) Age (6)
416,951,682
449,565,992
534,704,544
561,752,760
600,725,790
725,915,300
802,550,705
862,985,192
913,181,384
927, 594,152
4,084 1.8% 30.2
5,651 1.9% 30.2
3,190 2.2% <35.4
3,638 2.8% <35.4
4,262 3.7% <35.4
3,849 4.2% <35.4
4,111 4.1% <35.4
4,474 3.5% <35.4
4,551 3.5% <35.4
4,458 4.3% <35.4
(1) 2000 is a regular decennial census figure. All other years prior to 2003 are best available estimates provided by
the Minnesota State Demographic Center (as of 4/1 of each year). All years from 2003 and on are the City
staffs best estimates as of 12/31 of each year to give a more indicative of the actual population.
(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 two most current years use the 2004 figure
for computing the "Personal Income" figure.
(3) These figures are derived by multiplying the City's population figure times Dakota County's per capita income
figures.
(4) School enrollment is the total number of students who reside within the Rosemount High School boundaries and
go to Independent School District No. 196 schools located in Rosemount. A significant drop occurred 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.
(5) Unemployment rates were compiled by the Minnesota Local Area Unemployment Statistics (LAUS) for Dakota
County.
(6) 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.
Page 81
Schedule 15
City of Rosemount
Principal Employers
Current Year and Nine Years Ago
Employer
2007 1998
Percentage Percentage
of Total of Total
City City
Employees Rank Employment Employees Rank Employment
Note: The City of Rosemount does not track this information and there are no sources at the County or State level to provide this information.
Page 82
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